Dubai's RERA says 202 real estate projects cancelled

Tuesday, 14 December 2010 5:31 PM

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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Read All 66 Comments

Posted by: Eva Sunday, 14 April 2013 8:43 PM[UAE] - Switzerland

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

Reply to this comment.

Posted by: Abdul Rahim Thursday, 4 April 2013 11:05 AM[UAE] - USA

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

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Posted by: siva Sunday, 31 March 2013 4:52 PM[UAE] - UAE

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

Reply to this comment.

Posted by: Swadesh Kapoor Thursday, 27 December 2012 11:38 AM[UAE] - Uk

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

Please help

Reply to this comment.

Posted by: stuart rudman Sunday, 16 December 2012 4:50 PM[UAE] - Spain

My wife and I have paid over AED 620,000 for an apt. in German Sports Tower 1. The project should have need completred in 2008. It started then spopped then started again then stopped again.
Our apt. is reistered in our names through RERA but we have changed our address and RERA never answer our letters or emails. We have been told that RERA have cancelled the project and so we await a refund of our payments. However, as RERA never answer our emails or letters we do not know if we will ever be contacted regarding a repayment.
How can we be sure that RERA have noted our change of address??

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Read All 66 Comments

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