Staff Report
In an interview with CNN’s Zain Asher, Hussain Sajwani, the founder and Chairman of DAMAC properties, explained how the Covid-19 pandemic has impacted Dubai’s property market.
Speaking as part of the network’s Dubai Business segment on Quest Means Business, Sajwani stated that the pandemic has helped one problem in the form of oversupply, but Dubai will see a change in the type of buildings being constructed going forward.
Sajwani tells Asher that whilst he is positive for Dubai’s recovery, he believes the lockdown of the global economy will make 2020 “a tough year”.
Hussain Sajwani: In the last two years, 2018 and 2019, there has been oversupply. No question about it. I am the one that said that publicly, that the oversupply has to be cured. If there is any good news of Covid-19, [it is] that the supply has stopped from March almost until now. And I think most of our companies realise that [this] time is not easy, and they cannot just dump more supplies in the market. Now we will manage — I think we will manage the oversupply. Definitely this year is going to be a tough year, as you know, because it was a lockdown in the world economy and all of that impact of Covid-19. I think next year, especially toward the second half of it, I am quite positive about it because with the Expo and the expectation of the number of tourism that’s going to come to Dubai.
Zain Asher, CNN: Given it has been one month since Dubai opened its doors to the rest of the world, how long do you think it will take to see demand really pick up to where it needs to be?
Hussain Sajwani: Believe it or not, we have seen the demand picked up in month of July. And we have seen our collection up by 30% in July versus June. People, when buying property — we as DAMAC enhance our technological abilities, meeting a lot of customers or brokers or agents on video conferencing and investing in technology to interact with our customers. Having said that, for demand to pick up, the world economy has to open up.
Zain Asher, CNN: No one can deny the long-term impact of Covid-19. Not just Dubai, but for every part of the world. Walk us through how you think your business will change, just in terms of at least the types of real estate projects you invest in in the future.
Hussain Sajwani: I give an example. We are avoiding now any tall towers. Where we were you know, very big in that. I think towers of 60, 80 stories, a dozen elevators, you have to wait so long for elevators, people are not comfortable. Our focus is going to be more on villas, six stories, 12 stories, up to 15 stories. No question, office buildings going see a glut. Going to see — further I see oversupply because people going to be some of them working from home, some of them be able to use more technology on the video conferencing and so forth. But still people have to live, and people have to have a house and people have to have an apartment – and that will not change fundamentally.
