This is an interesting read:
Construction sites are buzzing with work across the Persian Gulf sheikdom of Dubai more than two years after the financial crisis set off a real estate slump that caused values to fall by more than 60 percent. In the next two years, tens of thousands of new properties will come onto a market where about 40 percent of homes and offices are already empty.Some developers have chosen to complete projects started before Dubai’s property market collapsed instead of canceling them and facing a legal obligation to return all advance payments to customers. Falling construction costs and low interest rates also provide an incentive to build now rather than wait for property values to increase. As many as 48,000 homes will be completed in the next two years, increasing supply by 12 percent, real estate broker Landmark Advisory estimates. “The cost of walking away from these projects is much higher than completing them,” says Ahmed Badr, head of Middle East real estate research at Credit Suisse CS.
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The bottom line: The cost of canceling projects in Dubai has builders continuing to work even in the face of a residential and commercial property glut.
If this is is not a sign of a huge bubble about to pop; I do not know what is. When will people learn?