By Zainab Fattah
Out of 980 registered projects, 495 were scrapped or are in process of being so.
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)For all the latest UAE news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
If this is indeed the case, the list of registered projects that has been cancelled, or in the process of being cancelled should be made known to the public! Can you imagine the Developer still calling us investors to keep paying for our purchased, yet uncomplete units! For the past 24 months, this project Jouri 2 by Worldwide International Developer, Agent is Al Masah is still at the substructure stage. Rera, please be sure you are fair and impartial and not let the developers keep cheating on the investors!
This is all very nice but what about the people who have bought properties, were supposed to have moved in two years ago and still today have no villa or recourse to get their money back off the developers..? Not to mention the unpaid contractors, architects and suppliers, we hear daily about this being the fault of the world economic crash but in reality we all know it's deeper than that.!
Will some one please inform the innocent people out here as to which projects have been cancelled; and what are the investor rights now to collect our funds paid. Will we get interest?
There should be a list of cancelled developments along with a standard procedure for investors to reclaim their money. WHY IS THE GOVERNMENT NOT DOING THIS? Surely this is the purpose of RERA? Why do they not impose their authority? Without Government intervention investor confidence wil never return.
Trust and credibility together with laws that deal with issues in a fair way (for locals and the rest) are the success factors in all countries. The topic about what is scrapped and not, how investors will get their moneys back, how developers will compensate with the moneys held with them for too many years, will developers be obliged by a fair law to get rid of greedy developers still charging too much for service they do not provide, etc.. is what will allow Dubai economy to recover. RERA has not been fair to investors and Dubai Laws are not adapted to a modern economy. All articles about Dubai recovery are just bad quality PR. Gvt has not delivered and will never deliver. People and businesses are leaving every day and are making bad publicity to Dubai. All gvt bodies should walk the talk rather than just talk.
I thought Dubai was back?
Good that governement cancelled projects, which is not started yet and make a small contribution to deduct the surplus of houses. Are there any consideration for those who invested at the peak. The goverment should discuss this subject with developers and finance house/banks to make it more easy.
Having read this news, I looked up RERA website to see if there was a list of cancelled projects, but alas, there is no such list to be found there. Why such secrecy for not publicly listing the cancelled projects? RERA please help us, the lonely investors who are supposed to be the drivers of growth of the property sector but are being totally ignored and not supported.
My money has been held with Deyaar since 2007, I have no means of getting my money back, Deyaar wants to give me an apartment in the middle of nowhere to compensate me, which I refuse categorically. What shall I do and where shall I go to get my money from cancelled projects???
So is the cup half full or half empty then?