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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.

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Who’s already the biggest real estate criminal in the

UAE over the year 2009?

Number 1

maktoum-hasher-juma-maktoum-afp-al-fajer-ebony-ivory-20091

Maktoum Hasher Juma Al Maktoum,
President AL Fajer Properties Dubai

Number 2

Lohmann BrandMaster

Robin Lohmann

CEO Alternative Capital Investement – ACI Dubai

Number 3

Malikagezicht

Malika Karoum / Define / ACI

or are all three ready to be fried on the BBQ?

Inshalaaaaaaa


Please, place your reaction/vote by a comment.

With thanks to http://7starsdubai.wordpress.com/

You are not alone there. Probably there are thousands of investors in this moment who invest in off plan property and now balancing on the edge of precipice.

What is very sad that authority doesn’t do their job. They have established RERA and Laws around but RERA does not act in accordance with responsibility that they have. By their passiveness they actually support developers to make with investors what every developer would like. But this is like huge boomerang that will devastatingly hit entire Dubai project.

I am simply stunned how authority is looking peacefully while full crowded ship sinking in front of their eyes.
By Law No 9 it is evident that RERA would like to help developer rather than helping investors. Where will be our investment place after Law No.9 just God knows.

What will be rules and conditions to cancel project will probably depends on color of skin, distance from Sheikhs, residency, are the owner of Developer domestic or stranger etc.

And do you think that investors are asked to participate in panel? Or when composing rules for categorize project to what “Sliding Scale” to place it?

I think that without pressing from outside they will still think that they can do whatever they would like and manipulate with foolish investors as much as they want.

UAE is not alone in the Earth. Their life depends on world community. Without respect to all of us who wanted to participate in Dubai story they do not have future.

One lesson was recently reached UAE by freezing permission for using nuclear power for civil purposes caused by incident from royal family.

I think that there has to be more lessons if outside investors are going to lose their invested money. We have to ask our government to protect our interest in Dubai.

by Robert to 7StarsDubai

Until recently I worked in the ‘legal’ department of a major property developer in Dubai. These investors are 100% correct. The unscrupulous practices being carried out by Developers in Dubai in order to defraud investors of the money they’ve handed over in good faith is quite incredible.

fraudgold1

It’s a massive scandal just waiting to be revealed. I just hope these investors are sucessful in their quest to reveal the extent of the scandal. We are talking about billions of dollars of investors money, not millions.

These developers have taken the money from investors, spent it and now cancelled the projects to which the money relates. The crux of the problem is the companies won’t now refund investors their money back as they simply don’t have this money anymore. They’re broke. If they were in an western country we’d say they were Insolvent or Bankrupt. They simply shouldn’t still be trading.

They can’t now give the investors the money back and they’ve spent it (or hidden it away in accounts in far off places). All these developers were relying upon is the ‘Pyramid Scheme’ they’ve been operating wouldn’t come to an end. Sadly the credit crunch arrived and their income gravy train has come to a sudden and abrupt halt. Now blind panic has set in amongst these developers and investors quite rightly ask for their money back in relation to the numerous cancelled projects. The scandal is that the developers are doing every trick in their big sordid book of malpractices in order to avoid having to refund such money, for the reasons I’ve said.

The Dubai Government and the so called ‘Real Estate Regulation Authority (RERA)’ are doing next to nothing to stop these sharks. They shouldn’t be surprised therefore that the pack of cards they’ve tried to build in Dubai over the last few years is now going to come tumbling down around their sorry, sordid ears. You reap what you sow.

EXAMPLE 1:

Everybody,

Be advised, the DL project, nor the units have been registered with the land department. in violation of the law. everybody go to the land department’s registration office ASAP and register your unit in your name. this prevents Schon from selling your apartment and canceling your contract. then go file your case in court ASAP.

DO IT NOW

Escrow account is iffy too. go to the bank and request for your account information as well.

EXAMPLE 2:

I am an ex member of staff from Schon who is owed not an unsubstanial amount of money. Ex employees are not being paid what they are owed. There are several pending civil court cases against this company, who have clearly flaunted the employment and visa rules of this country. One of these cases is taking place this week. By my estimation money owed is certainly well over 1m dirham.

If i were an investor i would not be paying any more money to this compnay until there delivered . they are taking but not giving in any shape or form.

Jumeirah Waves Business Towers project in Jumeirah Village South remains undeveloped more than two years after investors purchased units from developer.

in Dubai who have bought units in the Jumeirah Waves Business Towers (JWBT), a commercial development project comprises 3 identical towers located in Jumeirah Village South (JVS), are urging government authorities in Dubai, Real Estate Regulatory Agency (RERA) and master Developer of the JVS project, Nakheel, to intervene in an ongoing dispute with the project developer High Rise Properties, a protracted conflict that the complainants claim could potentially hurt the overall investor confidence in Dubai and ultimately deliver a negative impact on Dubai and the United Arab Emirates’investment landscape. A number of European investors revealed that the developer has not started any substantial work on the JWBT developments and has also been unwilling to entertain requests by investors for a refund and compensation since selling to them the units almost two and a half years ago.

The affected investors claimed that up to 50 per cent of the entire units in the 3 towers have been sold out, while buyers have paid between 15 to 60 per cent of the total amount of their respective units. The complainants further said that they do not believe that the delay in the start of construction of the JWBT has been caused by the ongoing global financial crisis since construction work on the project was actually supposed to have started more than two years ago – at the height of the real estate boom in Dubai and the region.

“It has been more than two years since our group and other investors have purchased units in the JWBT development; but until now the project area is still undeveloped and the developer –High Rise Properties- has remained elusive and unable to give us a reasonable time table for the development. There is certainly a breakdown in transparency and accountability somewhere and we urge the concerned government authorities in Dubai, mainly RERA and Nakheel, to step in and resolve this problem before it goes out of hand and negatively affect investor confidence in Dubai,” said Richard Moore, a representative of the affected European investors.

“High rise Properties have given a lot of excuses and promises, but nothing concrete has been done to at least make the investors feel that their investments are being safeguarded. It is not just the money that we have invested in this project that”s at stake here; this kind of attitude by a developer will certainly cause further damage to the reputation of Dubai”s real estate sector at a time when the industry is supposed to be consolidating its forces and building its image to limit the ill-effects of the global financial crisis,” added Moore.

The investors further pointed out that the JWBT developer, High Rise Properties, a company controlled by the influential and powerful Al Tayer family, has earlier made several excuses for being unable to start the project, including an alleged two-year delay in the turnover of the allocated land. The investors also claimed that the project has been registered with RERA, which makes the developer and its owner Abdul Hakim Al Tayer, fully accountable to the government. However, the complainants have urged concerned authorities to act swiftly and with full transparency on the matter as they fear that Al Tayer family may use its clout to influence the result of any investigation that may arise.

“Abdul Hakim Al Tayer and the management of High Rise Properties have been uncooperative and we are left with no other resource but to ask the government to help us settle this issue. Naturally, we can”t allow our investments to lay idle for an extended period without knowing what the future holds for the project. Moreover, there is obviously something wrong within this organisation considering it has been two years and they have not made any effort to push this project or reach a settlement with affected investors. Surely, the government must take a look at this case, considering its potential impact on the future of Dubai”s investment climate,” concluded Moore.

As far as we remeber the Niki Lauda “Twin” Towers should be a project of ACI / Define and now, afters months of waiting, promisses etc. etc. the constructionsite looks like this:

nl-towers

Amazing how the works comes to an ‘end’.