Skip navigation

Tag Archives: cancelled projects

DUBAI – Dubai’s Real Estate Regulatory Agency (RERA) will decide which of the hundreds of projects in the emirate are unviable and should be cancelled next month, staff said on Wednesday.

Staff at the RERA call centre said the review of more than 1,400 projects will be completed by the end of November, as investor concerns grow that many projects launched during the boom years are no longer feasible.

“By next month it will be out,” one member of staff said.

No RERA officials were immediately available for comment.

Billions of dollars worth of developments were launched during Dubai’s real estate boom, which had seen property prices close to double by mid-2008 from the start of 2007.

But the global financial crisis sent prices crashing as financing and demand dried up, forcing developers to freeze or cancel projects.

Developers have been reluctant to cancel projects outright and refund investors’ money, instead putting projects on hold until market conditions improve.

Investors say properties they purchased are now worth a fraction of what they paid and are calling on developers to scrap projects where construction has yet to begin and refund their money.

RERA and the Dubai Land Department in May set up a committee review projects and cancel those deemed unviable.

Marwan bin Ghalita, head of RERA, said at the time 27 projects were being considered for cancellation and that he believed 25 percent of projects will be cancelled in Dubai as a result of the financial crisis.

RERA staff said on Wednesday that 27 projects “are in the queue of being cancelled” and more could follow.

“They are not eligible to go ahead. Whoever has invested in these projects will get a full refund,” a member of staff said.

Advertisements