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Discuss this article (4 Comments)Joint committee set to cancel 'unviable' projects
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 07 May 2009
PROJECT VOTE: A special committee will decide which real estate projects should be cancelled amid the current slowdown. (Getty Images)
A special committee has been set up to decide which construction projects in Dubai should be cancelled amid the current slowdown in the real estate sector.
The Dubai Land Department and the Real Estate Regulatory Agency (RERA) have set up the committee to vote on "unviable" projects, senior department officials said in comments published by Emirates Business on Thursday.
Addressing an investors' meeting, officials said a committee has been formed to study and analyse non-feasible projects, the paper reported.
Ludmila Yamalova, partner at Mac Davidson Legal Consultants, who was present at the meeting, told the paper that amendments to Law No 13 regulating the Interim Real Estate Register in Dubai now allowed the committee to cancel projects that they deem not feasible.
Research published earlier this week revealed that more than 200 construction projects are due to be completed in the UAE during the first half of 2009, more than for the whole of the previous year.
Research by industry analysts Proleads showed that only 2.4 percent of 1,289 UAE construction projects worth $1.28 trillion which were under way at the start of the year have been cancelled.
About 135 projects were on schedule to be completed in the first quarter of 2009, with another 70 to be finished in the second quarter, compared with a total of 184 overall last year.
According to RERA statistics, 31,003 and 43,880 units are scheduled to enter the market in 2009 and 2010, respectively.
However, it believes 20 per cent of residential units may not enter the market this year.
READERS' COMMENTS
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Joint Committee set to cancel unviable projects
Posted by Rajiv Sehgal, Dubai, UAE on Saturday 9 May 2009 at 22:52 UAE time
The setting up of the Committee is a welcome step. However, the tenure of the Committee must be time bound, say by 31st July 2009 and its recommendations should be implemented forthwith.
Posted by Rajiv Sehgal, Dubai, UAE on Saturday 9 May 2009 at 22:52 UAE time
The setting up of the Committee is a welcome step. However, the tenure of the Committee must be time bound, say by 31st July 2009 and its recommendations should be implemented forthwith.
research needs to be approved/regulated before being published
Posted by Ahsan, Karachi, Pakistan on Thursday 7 May 2009 at 15:13 UAE time
Although the Govt of Dubai has been trying hard to make Dubai a successful modern city, however one of the areas where the govt/regulators need to seriously focus on is such reports being published without any verification. Most of the content that finds place in the media are far from what the reality is.
Since Dubai so much depends on Real Estate, it comes as a shock, how all such unverified reports get published, yet no steps to curb such practice are witnessed.
Definitely the regulators need to seriously look into this area, if they are serious about restoring UAE's image as the destination of choice. Not only are they harming the UAE real estate sector in particular, it also portrays a bad image of UAE as a Banana Republic among general public (specially overseas).
Posted by Ahsan, Karachi, Pakistan on Thursday 7 May 2009 at 15:13 UAE time
Although the Govt of Dubai has been trying hard to make Dubai a successful modern city, however one of the areas where the govt/regulators need to seriously focus on is such reports being published without any verification. Most of the content that finds place in the media are far from what the reality is.
Since Dubai so much depends on Real Estate, it comes as a shock, how all such unverified reports get published, yet no steps to curb such practice are witnessed.
Definitely the regulators need to seriously look into this area, if they are serious about restoring UAE's image as the destination of choice. Not only are they harming the UAE real estate sector in particular, it also portrays a bad image of UAE as a Banana Republic among general public (specially overseas).
Cancelled Projects!!
Posted by Punky Brewster, Dubai on Thursday 7 May 2009 at 12:35 UAE time
I think Proleads, the company that came up with the figure of 2.4% cancellation, has infact taken only a handful of projects which only their researchers are aware of, and based on those numbers, came up with 2.4%. Common people, look around you, tell me if one sees any MAJOR construction activity, like it was 2 yrs ago!! It's ridiculous on the part of the Newspapers to print anything, yet the REAL numbers wouldn't be allowed, 'cos of Ethics! Get a life....
Posted by Punky Brewster, Dubai on Thursday 7 May 2009 at 12:35 UAE time
I think Proleads, the company that came up with the figure of 2.4% cancellation, has infact taken only a handful of projects which only their researchers are aware of, and based on those numbers, came up with 2.4%. Common people, look around you, tell me if one sees any MAJOR construction activity, like it was 2 yrs ago!! It's ridiculous on the part of the Newspapers to print anything, yet the REAL numbers wouldn't be allowed, 'cos of Ethics! Get a life....
Where do they get their numbers
Posted by Geriant, Dubai, UAE on Thursday 7 May 2009 at 09:53 UAE time
If only 2.4 per cent of UAE construction projects have been cancelled could someone please explain how so many building sites are empty and the cranes removed. This is mindless finger in the wind guessing and is a further reason why the investors are leaving with the alacrity that they now display. If facts remain as scarce as this the market will never recover.
Posted by Geriant, Dubai, UAE on Thursday 7 May 2009 at 09:53 UAE time
If only 2.4 per cent of UAE construction projects have been cancelled could someone please explain how so many building sites are empty and the cranes removed. This is mindless finger in the wind guessing and is a further reason why the investors are leaving with the alacrity that they now display. If facts remain as scarce as this the market will never recover.
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