Are dubai's prime areas overdeveloped?

Dubai's prime areas are overdeveloped, one firm has declared.

Dubai has seen construction activity resume in recent months, following the rapid rebound from the emirate's severe financial crisis. Saudi developer Cayan Group, who built Dubai Marina's iconic twisted tower, though, warns that the area has become overdeveloped.

Cayan's chairman, Ahmed Alhatti, told Arabian Business that the Marina, Downtown and Palm Jumeirah now offer "limited investment potential" for investors.

"We were studying different areas and Dubai we are known as a luxury developer and we are known to invest in prime areas. However, the prime areas including Dubai Marina, Downtown and the Palm [Jumeirah] I can say are oversupplied and the investment opportunities have become limited.

"The most important difference is the land prices. When you buy now the land prices are limited, it is difficult to get a good view. Areas like the marina became extremely congested in our opinion. Therefore, considering the land price, for us to do our creative designs, which normally cost more than the typical developers, we found that we will not be able to give the right investor opportunities to our clients. We did a different project where we can deliver high quality which our loyal clients will appreciate."