By Rob Morris
Move to allow real estate developers more time to secure funding amid global financial crisis.
Dubai real estate developers are in talks with builders over plans to slow the pace of construction to allow them more time to find funding amid the global financial crisis, the CEO of Arabtec Construction said in comments published on Sunday.
Riad Kamal said the company, part of Arabtec Holding, was talking to clients about introducing longer construction schedules, under which developers would need at least another year to complete tower projects that currently take two years, UAE daily the National reported.
The same extension would apply to low-rise residential and retail projects, Kamal said.
"There was no reason for projects to be implemented at the speed at which they were," Kamal was quoted as saying.
It is understood Nakheel and Emaar Properties believe implementing more flexible deadlines will relax property buyers' payment plans, the newspaper said.
This looks like an excuse to me, and creating stupid fake demand! developers should have thier finance ready before thinking about a product (their towers) and not rely on investors to build the entire tower! Now the delvelopers can get away with delays, not like the deliver on time.. but an investor can still loose all his investment if he were to delay payments by say .. a year!