By Shane McGinley
State-backed developer blames slumping real estate market for decision on luxury golf complex
Dubai Properties Group, a unit of debt-hit Dubai Holding, has suspended work on the luxury Tiger Woods Dubai golf course and residential unit because of unfavourable market conditions.
The government-owned firm took the decision in light of Dubai’s real estate collapse, it told Middle East Golfer in a text statement on Monday.
“This decision was based on current market conditions that do not support high-end luxury real estate. These conditions will continue to be monitored and a decision will be made in the future when to restart the project.”
A property boom in Dubai collapsed at the end of 2008 when it was hit by the global financial crisis and the Gulf state's debt crisis.
The development is a partnership between Tiger Woods Design and Tatweer, which is now a part of Dubai Properties Group. Tiger Woods has a minority stake in the project.
Original plans for the 55 million sq ft Tiger Woods Dubai included 287 luxury villas and mansions, a boutique hotel and a clubhouse. The course, designed by Woods, was originally due to be completed by September 2009.
The last update, issued by Dubai Properties in February last year, said construction had stalled at the eighth hole.
The developer said in November 2007 that Woods planned to build a 16,500 sq ft mansion overlooking the golf course that would include a gym, theater, library and pool.
At the time, villas on the luxury project were selling for between $12m and $23m.
Dubai Properties said it may revisit the project in the future and would retain its deal with the golfer.
“We maintain a good relationship with Tiger Woods and his organisation and will retain our commercial agreement together,” the company said.For all the latest construction 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.
Another nail in the coffin for Dubai property sector
Suspended but not cancelled? What about the people who put money into this?
The economy minister says the worst is over, so this announcement means nothing as it was clearly not an important development in the first place. The time for telling the truth has come because the government has not once admitted its failure to cope with the collapse, and instead trickles of press releases keep saying all is well. Just one word of regret from the government is all that is required, but we might be too old to hear it when it is uttered.
I'm not too sure why you need the UAE government to regret what happened. In investments you either make money or lose it. Plenty of people became (and remained) billionaires thanks to the boom that took place up to 2008; and many others have lost their money in that same time. The government is not responsible for the stupidity of people paying AED 3 million for a studio out in the middle of the desert.
Due diligence is a term most investors here did not understand, so could not implement. Those who did their homework came out on top. The rest, tough luck.
By the way, we should remember that the crises actually started in the US, not the UAE. And it took its sweet time to get here. Should the US and Europe apologize to the UAEs of the world for causing the recession?
Why don't they say 'cancelled' instead of 'suspended'. But they will admit it, and hold the investers money in their account indefinitely.
Wow, that 8th hole must have been a big one.
Good Decision - Check Tiger Woods ranking now - They're falling faster than Dubai Property Price Index
It's in a coma, just like the World Islands.
-"Dubai Properties blames market conditions" ??
And who created these market conditions? are real estate companies living in total denial?
@ Sax , wow your view of economics is astounding . Dubai had an usustainable economy period . It was betting that the graph just kept rising. The UAE borrowed money way out of it's remit , developers were badly managed and projects were obscene. The first part of moving on is to admit your mistakes . Dubai is a classic case of too much facade and no substance.People still hark for the pre 2008 days and the good times , let me tell you that the next 2 years will be the toughest yet .