Monday, February 02, 2009

$75bn worth real estate projects cancelled in Dubai: HSBC

Almost 60 percent of real estate projects in Dubai, worth a total of $75bn are being either delayed or cancelled, with the booming construction sector of the emirate being hit by the global economic crisis, states a new report by HSBC.

Several projects that were in advanced stages of completion, were also being scrapped off completely, the Bank said, in its note on Arabic Holding, one of the largest construction firms in Dubai.

According to the bank, majority of the delayed or cancelled projects are high-end residential and commercial developments. The once-booming property market in Dubai has been hit hard due to drop in sales and stringent financing, and the developers are being compelled to re-look their project requirements.

The HSBC report lists out 59 projects that are under review currently, including the eight projects that have been completely scrapped off. Among the cancelled projects, two projects belong to Damac Properties, the largest private developers in the region.

Nakheel, the Government-owned developer too, has put on hold six of its major projects, including the Palm Deira project, the one kilometer tall Nakheel Harbour and Tower, and the $790mn Trump Tower.

Limitless, another government-supported developer had announced that it was reviewing the pace of $61bn Canal development. This was followed by Meraas, another government-backed developer reviewing its $95bn re-development programme in the heart of Dubai.

According to the HSBC report, several projects at the $110bn Dubailand development, destined to be the height of tourism in the emirate, have been cancelled, which also includes the Falcon City of Wonders, which was to include a replica of Eiffel Tower, Taj Mahal and the Tower of Pisa and other wonders of the world.

1 comment:

WebJunky said...

nakheel and emaar combined make up over 60% of the development projects. considering both have delayed most projects the number still appears quite low.