Dubai based developer brought cheer for a large number of investors by completing a Dh60 billion (US$16.33bn) financial restructuring yesterday. The firm promised to deliver almost 8,000 homes in the coming year, giving a new push to the real estate sector that remained under pressure in the past due to various reasons.

The company, Dubai's biggest state-owned developer, is likely to take up construction on the projects later this year. The projects include villas in master-planned communities such as Jumeirah Village and Jumeirah Park to luxury homes on the Palm Jumeirah. Majed Azzam, an analyst at AlembicHC in Dubai, however, cautioned against more supply in the market.

Mr Azzam hoped rise in demand from Chinese and GCC investors amid the low interest regime. He said that Nakheel's announcement to increase house supply is unlikely to hurt prevailing property prices.

Lenders across the world have slashed interest rates anticipating fears of recession. Mr Azzam said. "From an investment standpoint it does make sense considering the low-interest environment we're going to be in."

Meanwhile, Ali Lootah, the chairman of Nakheel termed it as a great day for Nakheel adding that the firm is looking forward for delivery and meeting the commitments.