Dubai cancelled half of planned property projects

Tuesday, 28 September 2010 1:17 PM

SLOWDOWN: Out of 980 registered projects, 495 were scrapped or are in the process of being cancelled, official data shows. (Getty Images)

Dubai’s government cancelled almost half of the real estate projects planned in the emirate after the credit crisis caused demand to collapse and a housing glut drove down home prices.

Out of 980 registered projects, 495 were scrapped or are in the process of being cancelled by the emirate’s Real Estate Regulatory Agency the government said in a bond prospectus posted on the London Stock Exchange website on Monday.

The cancellations have been prompted by “liquidity shortages for developers, decreasing headline real estate prices and rental rates, and increasing market uncertainty and negative sentiment,” the government said in the prospectus.

Forty-six property projects have been completed since 2008 and another 307 will be finished “in due course,” the government said without naming the projects.

The deepest global financial crisis since the 1930s led Dubai property prices to drop by at least 50 percent from the 2008 peak and forced builders to delay or cancel projects worth about $330 billion, Dubai-based market researcher Proleads estimated in April.

Values may drop another 20 percent as 41,000 new homes are put on the market by the end of this year aggravating an existing glut, said Ahmed Badr, a Dubai-based analyst for Credit Suisse Group AG.

Nakheel, the developer of palm-shaped islands off Dubai’s coast, on Tuesday announced plans to resume work on the Garden View villas project. The 134 townhouses are expected to be completed in the third quarter of 2011, it said. Last week, the developer restarted construction work in its Al Furjan project. (Bloomberg)

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Posted by: VINENDRA Friday, 15 October 2010 4:20 PM[UAE] - India

What's about projects which are not registered with RERA ?There are 100s projects on paper never registered with RERA. No one knows if cancelled or on hold.Since long time investors asking RERA to publish list of cancelled projects but no action.

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Posted by: Masoumeh Wednesday, 13 October 2010 11:01 AM[UAE] - Iran

I've Signed a contract for 2 Villa with Falcon City LLC in Dubai on 2008 + paid 30% ( 2.5 Million AED ), hand over time Sept. 2009 with only6 months delayed .
They showed us the Eifel Tower + sold off plan project but in spite of our various request not even tell us when they want to built that!!.
They postpond all wonder projects for 10 yrs but don't want to refund our money.
we passed one year from hand over time and since March 2010 I've sent them many letters , emails but no body answered me. Nobody is responsible in that Co. to take care of investors!
It is amazing at the same time , Mr. Salem Al Moosa, Chairman and CEO of Falconcity of Wonders L.L.C, participation in Cityscape Dubai 2009,2010
They have no transparency + not tell us when they want to built the wonders?
Nobody tell us what happened to money that we paid to them ?!!

Just wants to aware people do not invest on any property in Dubai as it is just
one way road and nobody cares about investors.

Posted by: Bilal Tanveer Friday, 18 March 2011 11:31 AM[UAE] - Pakistan

I've also signed a contract for a villa with Falconcity of wonders in 2008, and paid 50% (AED 3.3 Million), with the hand over being in September 2009. I have the same situation as yours, sent various emails, but no reply to any of them. I just wanted to ask you, what do you plan to do about it, and is there is anyway to get our money back. If you could please give me any tips on how to resolve this problem, it would be greatly appreciated. My email is btanveer@mac.com

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Posted by: Shariff Mughal Thursday, 7 October 2010 10:29 AM[UAE] - united kingdom

I belong to a large group of frustrated unhappy 'Investors' from UK who invested in UKCIG's Project Metropolis Lofts in Dubai. We have written to Rera ,Nakheel ,Tamweel ,and UKCIG repeatedly requesting for cancellation and refund---mostly letters remain unanswered. Dubai has lost the confidence of the investors and authorities would need to weed out the unscruplous developers and help and listen to the investors to regain former glory

Posted by: Mahesh .Advani Thursday, 28 October 2010 1:10 PM[UAE] - Dubai

What money are you talking about ? Nothing is happening & nothing is going to happen.

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Posted by: Zehra Wamiq Wednesday, 6 October 2010 8:38 AM[UAE] - United States

We invested in Metropolis Lofts by the developers UKCIG. Same story.... completely agree with Mr Jamal. Have no clue if and when we will get our money back.

Posted by: Ali McNab Tuesday, 26 October 2010 9:22 AM[UAE] - UK

Zehra , I have read your email with respect to Met Lofts, I also invested several years ago in a 1 bed apartment . Very frustrating that we have a considerable amount of money tied up. I have tried emailing UKCIG but have had no response .
What experience have you had .
How can we progress this ??
Alistair

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Posted by: ron oakeley Tuesday, 5 October 2010 10:22 AM[UAE] - uae

I agree with mr jamal , i am a fellow Niki Lauda investor and have been trying to get a refund in the Dubai Courts for over 18 months ...it is still with them , we have a hearing nearly every month .... no result as yet ! why is rera dragging its heels over these non existant projects ? no one will ever trust Dubai real estate without transparency .. come on Rera name and shame and take action

Posted by: mario rossi Sunday, 21 November 2010 10:46 AM[UAE] - italia

Hi Ron, I invested about 100,000 euro in "Wings Of Arabia" project from ACI- Dubai, for a two bedroom flat (total cost 190,000 euro) the completion date was end of 2009 -early 2010. The project did not start yet and nobody knows if ever will start. ACI office do not reply and maybe they shut down. I wrote to the government office RERA for information but got no reply. I would like to bring ACI to the tribunal but I am told it is a costly procedure and Dubai court is not ready for so many cases. Could you please let me know what to do as you have already done most of the actions against ACI? Do we have any chance to get a refound of our money? Please let me know, tks.
mario rossi, rome, italy

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