From ArabianBusiness.com
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Dubai is considering cancelling 27 projects, the head of its real estate regulator said on Monday, as the emirate's property market slumps in the global downturn.
A decision whether to cancel or not would be made by the end of the month, said Marwan bin Ghalita, the head of the Real Estate Regulatory Authority (RERA). "The decision has not been done. They are projects all over Dubai - third party projects (sub developers)," he said.
Earlier this year, Ghalita said he believed 25 percent of projects will be cancelled in Dubai as a result of the global economic slowdown.
"It's almost the same," he said when asked if that figure had changed. The Dubai Land Department and RERA set up a committee last week to cancel projects in the emirate that are not feasible.
Real estate prices tumbled 41 percent in the first three months of the year, property consultants Colliers said in a recent report.
A collapse in property prices has already led to project cancellations in the region worth billions of dollars.
More than half of the construction projects in the United Arab Emirates, worth $582 billion, have been put on hold, Dubai-based market research firm Proleads said in February.
Ghalita said on Monday the committee would cancel projects based on RERA's decision whether or not they should continue, a request from developers to cancel, or through complaints to the watchdog from project investors.
In February RERA said Dubai developers are likely to delay the delivery of about 20 percent of residential units in 2009 and 40 percent in 2010.
A decision whether to cancel or not would be made by the end of the month, said Marwan bin Ghalita, the head of the Real Estate Regulatory Authority (RERA). "The decision has not been done. They are projects all over Dubai - third party projects (sub developers)," he said.
Earlier this year, Ghalita said he believed 25 percent of projects will be cancelled in Dubai as a result of the global economic slowdown.
"It's almost the same," he said when asked if that figure had changed. The Dubai Land Department and RERA set up a committee last week to cancel projects in the emirate that are not feasible.
Real estate prices tumbled 41 percent in the first three months of the year, property consultants Colliers said in a recent report.
A collapse in property prices has already led to project cancellations in the region worth billions of dollars.
More than half of the construction projects in the United Arab Emirates, worth $582 billion, have been put on hold, Dubai-based market research firm Proleads said in February.
Ghalita said on Monday the committee would cancel projects based on RERA's decision whether or not they should continue, a request from developers to cancel, or through complaints to the watchdog from project investors.
In February RERA said Dubai developers are likely to delay the delivery of about 20 percent of residential units in 2009 and 40 percent in 2010.
Somebody must look into this development as this project started 2 years ago - investors have paid 50% towards the cost of the units - but nothing has materialised no construction - and the only time I hear from them is for payment demands - when I ask for project progress I get no real answers.
ReplyDeleteIf RERA took action on all projects that have not started and cancelled all projects that have not yet started - this would provide an influx of real money to projects that are honouring investors by completing the projects on time. This would reward good companies and weed out bad ones - providing a much needed boost of confidence in the Dubai Real estate market.