Monday, December 01, 2008

Dubai Bubble has actually burst!

Are we there yet?

I think so. The elusive bubble has burst and time to really see things in perspectives.

Restructuring likely in real estate sector

As many as 819 people have lost their jobs in the property sector in Dubai to date, with many more expected, analysts and officials said.
Developer Nakheel on Sunday made 500 staff redundant, representing 15 per cent of their workforce of about 3,300.
Earlier, Damac let 200 go, Omniyat 69 and Better Homes have made 50 people redundant, making the total headcount to 819.
Things are far from perfect in this real estate industry, where investment is more stagnant than free-flowing as before.
Those let go from Nakheel were notified on Sunday with many leaving immediately "because of the holidays coming up", said a senior communications executive whose own job, presumably, is safe.
And while real estate staff are quaking, the job losses are overflowing in to the banking sector with Morgan Stanley downsizing operations in Dubai.
On top of the sackings, many of Dubai's mega-projects, those which have thrown Dubai in the spotlight, have been put on hold.
Kathy Cusack, planning and design manager for Waterfront said she couldn't comment on any delays on the Waterfront project.
Limitless is reviewing the construction schedule of Arabian Canal.
"Arabian Canal is not on hold at all. But we are reviewing the pace of development," Rebecca Rees, media relations manager, Limitless, said.
Rees also said none at Limitless had lost their jobs so far and they "are not planning" any job losses but their recruitment programme is being reviewed.
The Dh350 billion Jumeirah Garden City development is now on hold.
"The master plan is being revisited and pockets of the development are delayed," said a spokesperson from Meraas.
Meraas also have no immediate plans to lay off any staff.

Newly unemployed 'must lower salary expectations'
Dubai: As the economic crisis hits the real estate market in Dubai, job cuts have occurred and the newly unemployed must readjust their expectations in the market, according to a real estate human resource company official.
Samir Khosla, managing director of Dynamic Staffing Services, a human resource company, told Gulf News; "The employer is back in the driving seat, and candidates should align their expectations in terms of salary.
"Job seekers now need to be a lot more flexible with their demands when dealing with their employer, rather than having high expectations that relate to the market situation that existed in the last two years."
Khosla said, "We survey the market, and what candidates are expecting is at least ten per cent above what the market is offering."
Many companies in the construction sector are on a recruitment freeze as projects slow down, industry experts say.
Brendan Meher, managing director of, an online human resource recruiter, said, "Within Dubai itself, companies within the construction have stopped recruitment. However, it is in pockets, not a blanket, with some companies still hiring."
Meher said that with the current market uncertainty, companies are holding off hiring decisions until New Year.
As more people become available for hire, Khosla suggested that candidates take courses in a specialised field which may be more in demand and not as expendable as other jobs in the market.
"There are still sections within the construction industry where jobs are in demand because there was always a shortage situation. We're trying to help these candidates in how to transition over to some of the job areas that are more secure," he said.
Khosla also suggested Abu Dhabi as an alternative employment market. "That market currently seems to be a bit more robust in terms of hiring ... Candidates should consider careers in Abu Dhabi and Qatar particularly in the construction industry."
The recruitment specialist said, "People have over expended themselves, and have taken on a level of expense that they just cannot sustain at lower salary levels, which is a very difficult situation."
Khosla also said some companies are renegotiating candidate salaries, where they are asking employees to take pay cuts of up to 30 per cent. "Some take pay cuts, while others get terminated. It's a harsh reality, what's happening," said Khosla.


MikeLing said...

Ask them not to give up. There are jobs available elsewhere. In fact the korean contractors are looking for more people for the Angola project.

JT said...

Recruiters in Construction:post free construction jobs