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Latest real estate industry job loses sinks Dubai property dream further

Nakheel, whose ambitious projects include the Palm Islands, has made the latest redundancies on top of 500 that were carried out in December.

'Nakheel continues to re-adjust its current business objectives to match supply and demand in the most effective way,' a company spokesman said.

It is a sign that the downturn is by no means over in Dubai where the price of some properties have fallen by up to 50% since the peak of the market in 2008.

Developers, who were mostly reliant on off-plan sales to finance the construction of their projects, have struggled to collect payments, leading to rising defaults, while payments to suppliers have been delayed.

High profile development projects have also been delayed and it is estimated that currently over £335 billion of projects have been halted or are on hold.

A number of merges are going on. Nakheel recently merged a number of its business units.

The redundancies come after at least five years of expansion, during which Nakheel took on staff for large salaries in order to resource its ambitious projects, which also include The World and Waterfront.

While there is no official figure on how many jobs have been lost in the property sector since the downturn hit, estimates suggest thousands have been made redundant across real estate and associated sectors, including construction.

The job cuts could have a longer-term impact on the property market because of a dwindling local population. There are also concerns that the image now project by Dubai is one of half built buildings on empty construction sites instead of the Switzerland of the Middle East it once aimed at being.