Thursday, May 14, 2009

Dubai likely to scrap 27 projects

The Head of RERA (Real Estate Regulatory Agency) in Dubai, Marwan bin Ghalita yesterday revealed that Dubai is considering cancelling 27 projects.

The decision about this issue would be taken by the end of the month. The projects likely to be scrapped off include third party projects handled by sub-developers that are scattered across Dubai.

Ghalita revealed that 25 percent of projects will be cancelled in Dubai, owing to global economic turmoil. Last week the RERA and Dubai Land Department had established a committee to cancel projects in the emirate that are not feasible.

Prices of properties dropped 41 percent during the first three months of the year, as per the report by Colliers. The drop 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 UAE are worth $582bn and more. These have been put on hold currently, either following a request from developers to cancel projects or, due to complaints from project investors.

8 comments:

Anonymous said...

Good move, Good news, if you can name the would be cancelled projects, be.coz most of the small investers are overseas and they are unaware of the news whats happening in uae,

Anonymous said...

it will be very wellcomed step to cancilation of 25% projects because it will stablise property prices and enhance the liqudity in the market.

Anonymous said...

I am shocked at the behavior of Dubai authorities.

I wrote many emails to know what have they planned but not one ever got back to me.

As an investor not only my confidence has shattered but i also tell others not to trust them because i am not demanding them to refund but at least they should have a courtesy to reply and let us know what is the current status.

They are not trust worthy at all because they have now also cancelled visas.

What about those people who bought the property for visa only so that they can take a flight and move to Dubai in case the conditions of their own country becomes bad.

Anonymous said...

On the basis that the projects to be scrapped would never have got finished anyway, RERA decision is a 'no brainer'. Obviously, investors need to know the names of the cancelled projects as soon as possible and will also want to be reassured that they will get full refunds

Anonymous said...

There are some projects like Bristol (Deyaar's project) that have beeen never started, but the developers still are keeping the money collected from people. It is necessary to investigat these cases.

Anonymous said...

i had booked a studio appt at alila towers through oriental real estae in sept 08 by paying 20%, till date not received the agreement and no response from both alila and oriental real estate(sent so many emails)

Anonymous said...

Does anyone know the cancelled projects??? Invested with Pyamod GST2 cant get hold of them for love nor money, although registered with RERA I was told they would be put on the website and if investors want their money back would have o go thru the proper procedures...????

Anonymous said...

Can all know the projects list?