By Claire Ferris-Lay
Planned $2.9bn tower was suspended in wake of Dubai’s real estate slump
Trump Organization, the US company fronted by real estate
mogul Donald Trump, has refused to confirm or deny reports it has scrapped its Trump
International Hotel & Tower Dubai.
Ali Rashid Lootah, the chairman of Nakheel, indebted
developer behind the project, was reported as saying the $2.9bn project had
been cancelled and would be replaced with a shopping mall.
When contacted by Arabian Business, a spokesperson
for the New York-based Trump Organization said she couldn’t confirm or deny the
The project is however still listed on the real estate
magnate’s website as “coming soon”.
Trump International Hotel & Tower Dubai, a
62-storey mixed used building on the Palm Jumeirah’s Golden Mile, was first
announced in 2005.
The project was launched with several star
studded gala events in Los Angeles and New York in 2008.
At one point the project’s penthouse became the most
expensive property in Dubai with one buyer offering AED11,100 ($3,022) a sq ft,
or almost AED110m.
Property prices in Dubai have plunged by more than 60
percent since the onset of the global financial crisis. In December Dubai’s
Real Estate Regulatory Agency (RERA) said more than half of the planned
projects in the emirate have been cancelled or delayed.
Nakheel was at the heart of its parent company Dubai World’s
debt troubles that saw the state-backed conglomerate restructure some $25bn in
In May 2009 Nakheel said work on the residential and hotel
project had been suspended indefinitely. Several months later Donald Trump Jr. said that building work on the billion-dollar
project would not happen “any time soon” but said he hoped construction would
begin in 2011.
“It’s going to take some time...I would say it's not going
to happen any time soon," he said, adding: “There is a time for a project
like that in that location.”
I thought his excellency the UAE Economy Minister said the worst was over for real estate? Maybe Mr. Trump should give him call to understand that the market in Dubai is on the way up!
Things will turn around for Dubai from June 2011
Dubai will come back soon, as Mr.Trump always says, location location and location.
Dubai is a in good location between the west and the east you can't go wrong with it, its just the matter of time
It is indeed good to know Mr. Trump is pulling off from Dubai, at last they should know there are people with sense to look into long term returns rather than quick money making techniques
Instead of replacing 'Trump Tower Dubai' with yet another shopping mall... how about a park? A family park... with walking and running and tracks, ...and football pitches ...and playgrounds for the girls and boys. Nakheel is forever portraying itself as a family oriented, civic thinking, environmentaly friendly company... interested in the welfare of the community. Just think how much a beautiful green park on the Palm would mean to the people of Dubai? It would be a welcome change.
Trump after Tiger Woods - Maybe Dubai should now focus on development for expats - The real people who really invest in Dubai.
They were only using Trump name, he wasnt involved in building or financing the Dubai Trump Tower so why would he comment...
Tiger Woods Project & now Trump cancelled - well if nothing else at least they are clearing the decks with projects that most knew would never materialise
The market may be "On the way up" but it would appear that Trump Towers is not!
Given the political strife across the region at the moment, I think that recovery is a little optimistic in terms of residential and commercial property, hotels are about the one asset that seem to be surviving. Plenty of MICE business and tourism which is good, because hospitality and civil aviation is really a core business for Dubai.
Construction, financial services and retail all have a negative outlook. Property of all types is massively oversupplied now, and if the numbers are correct that will get infinitely worse. There are just not enough higher paid jobs for expatriates to turn the tide and obviously the number of Emirati employees is certain to rise based on recent initiatives. Two year employment visas for expatriates will also make people less inclined to invest and lenders even less inclined to approve mortgages. Property ownership visa rules are simply not going to change from 6 months multiple visit in the interests of security.
the worst is just starting,in my opinion,things will get worse by 2012,mainly higher fees,more indirect taxes ,and will get even worse by 2016,simply because technology is changing so fast that by 2016 the whole world would be deferent ,and oil would be around 35-50$