Dubai's RERA says 202 real estate projects cancelled

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RERA CEO: Marwan Bin Ghalaita, chief executive officer the Real Estate Regulatory Agency (ITP Images)

RERA CEO: Marwan Bin Ghalaita, chief executive officer the Real Estate Regulatory Agency (ITP Images)

Dubai has cancelled 202 property projects and won’t allow developers to start new ones without funding them in advance as it works to control supply, the head of the Emirate’s real estate regulator said.

“We are putting in a proper plan to watch over supply,” Marwan Bin Ghalaita, chief executive officer the Real Estate Regulatory Agency, said in an interview Tuesday. Developers requested 115 of the cancellations, which took place since late 2009, he said.

About 33,000 new housing units will be added to Dubai’s market by this year, exacerbating a vacancy rate of around 40 percent, Colliers International estimated. Property prices have fallen by almost 60 percent after banks curtailed lending and speculators left the market.

The regulator, known as RERA, has developed new criteria to evaluate developments that were under way when the financial crisis hit, Bin Ghalaita said. It’s cancelling projects where little or no construction has taken place or where buildings are far from city infrastructure.

Projects in which the majority of buyers were speculators and have ceased payments or those owned by developers who can’t show they are capable of finishing the work are also being stopped or delayed, the RERA chief said. He wouldn’t name specific projects.

Dubai’s property market, where home prices surged 79 percent from 2007 to mid-2008, is “back where it should be and is currently attractive to end-user investors,” he said. Potential buyers can expect yields of as much as 12 percent a year by leasing out housing units after the decline in prices, the he said.

Many investors continue to pay on properties they bought before the crisis because they believe they are making a good long-term investment, he said.

“There are some investors or speculators who made bad decisions and now they want to back up,” Bin Ghalaita said. “But the majority of investors, as long as their project is progressing, are paying and need their properties.”

 

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Please post responsibly. Commenter Rules

Posted by: Yelena Monakhova

I have purchased studio apartment in Eden Blue( Dubai Marina) for 438,000 with the premium inside of the price 100,000 Dhs ( lucky one who sold in that time to me. Agter piling and shoring was done - they stopped and then more - the started to cover piling and shorring with cement flooring to cover by the tonns of the sand tracked by the tralers. RERA told that Investment house and Dujon - the Owner/Developer of the project- they are not registared in Dubai - but in Seashell Islands. Where have RERA been when the sold all project and opened ESCROW account - to calm doun investor's warries with " waranty" that it is under suppervision of the RERA who approved Sell and opened ESCROW wher is now 70% of Original price, mentioned in the sales purchase agreement from Developer( minus premium amount= 338,000 Dhs)
As well no one contacted me by mobile or by e-mail neither from RERA, nor Dubai Court for the asknowladgemen of refund my money for the cancelled by RERA Eden Blue in Dubai Marina

Posted by: Eva

So many projects it is redicule, over doing the market, first finish
one by one ! Do less and better ! instead making Dubai a jungle...
Make only special buildings, like before, with extraordinery architects, not just build for building !
Sooo many MALL"S sooo many HOTELS to come ...
1 bedroom apt new project start 2500 million 970 sqft. !!!!Crazy!
Have known Dubai since 30 years

Posted by: Abdul Rahim



Dear Inverstors hi
I am one of the investors in jumiara village I invested almost 65% and i have hired a lawyer he work for last two year like a cat he promises me before that he will get all money but now they check all over for builder my escrow account and builder account and his assests they found nothing m y advise never hire a lawyer they are ideot and have no knowldge you will loose another lum sum money to pay lawyer if they government dont help to get our money then they see what happen in most of the arab countries that will happen to Emirate

Posted by: siva

I purchased a studio property in diamond arch 2 project in Jumeriah viilage. It was in approved list of projects in rera website. Now there is no mention o this project any whenre and the builder gold coast consructions have vanished. I already paid 80% of the installments.
What do I do? I went to real estate disputes court and they said I have to file a case with 14% court fees which again is substantial.

All doors have closed. Is there any one who bought in Diamond Arch 1 & 2 project and can suggest any way to help here.
pl conatct me on 050 4557154
thx

Posted by: Swadesh Kapoor

Why has the construction stopped in Marina suites?
Where has the developer gone?
Is there a contact number?

Please help

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