Dubai projects to be scrapped

Published 15th May 2009

Up to 27 property projects in Dubai are set to be cancelled under new rules that give the Real Estate Regulatory Authority (RERA) the power to stop unviable developments...

The projects are currently under scrutiny and RERA confirmed that a decision will be announced before the end of the month.

The projects are all over Dubai and inlcude third party, or sub development projects, Marwan bin Ghalita, the Head of RERA, said. He expects up to 25 per cent of projects in Dubai to end up being cancelled this year.

A committee set up by RERA and the Dubai Land Department is currently examining 27 projects. 'We are looking at them. The final decision has not been reached yet,' bin Ghalita added.

The committee's decision will be based on whether or not the projects are financially viable and it is considering request from developers for cancellation as well as looking at complaints for real estate investors about projects that have stalled or are not moving forward according to original estimates.

The collapse of the real estate market in Dubai has already let to billions of dollars worth of projects being cancelled. Recent figures from market research company Proleads suggested that £384 billion of developments in the United Arab Emirates have already been put on hold.

Bin Ghalita also confirmed that the next Dubai property rental index will be published in September. RERA will also share the database with Ajman's Real Estate Regulatory Agency and allow real estate agents in Ajman to register with RERA as well as ARRA.

'It will unify the federal laws if we share the same database. It will unify the database for developers and agents,' he said

Source: ' TheMoveChannel '

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