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List of losers

List of losers

A list of Dubai’s properties that have been either cancelled or delayed is making the rounds. If accurate, this is one list properties don’t want to top.

February 1, 2009 2:22 by



A list of project cancellations and delays of properties in Dubai, which has been emailed to Kipp on at least three occasions, has caused a stir among the emirate’s expatriates.

If the list is accurate, then approximately $72.563 billion worth of projects are on hold, and $3.275 billion have been cancelled.

Kipp called a number of the developers on the list to confirm the rumors, and received mixed results. According to the list, Falcon City of Wonders, which it claims is being built by ETA Star, has been cancelled. However, the development is being built by Salem Al Moosa Enterprise.

Yet, Damac Property’s projects that are listed as “on hold,” such as Water’s Edge in Business Bay, and Business Bay: Burjside Boulevard are “experiencing delays,” explained the customer service operator.

When asked how long the projects will be delayed, she was unable to specify.

Kipp also called Dubai Properties to enquire after Signature Towers and Porsche Design Towers, both in Business Bay, but was met with a labyrinth of clueless operators and hesitant staff. We also called Nakheel, but the public relations department was unavailable.

Understandably, if the list proves to be accurate, then a number of developers have some explaining to do. Why wait for a random email to circulate before announcing the news to the public?

However, if the list is wrong, then it merely plays on expatriates’ already gloomy sentiment toward Dubai’s property sector…it may explain why the emails sent to Kipp with the list attached were sent by people who believed (blindingly) in the list’s accuracy.



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15 Comments

  1. mohamad on February 2, 2009 7:31 am

    The list may have errors but the biggest error lies with the developers. The developers are not announcing that projects are on hold or cancelled because they would have investors knocking on their doors asking for refunds. Instead developers are keeping the money and asking for more payments. The biggest issue which will lead to numerous disputes and total loss of confidence in the real estate market in Dubai, is that if the developers terminate the contracts based on default by the purchaser when in fact the developers are in default especially for projects where construction did not start eventhough projects were launched a long time ago.

     
  2. Asif on February 2, 2009 8:06 am

    I read a blog on the internet (The Hannibal Blog), a quote from that sums it up nicely :

    Success often introduces uncertainty, whereas failure often removes it. And, as researchers are now discovering, people cope far better with disaster than with uncertainty.

     
  3. Marc Cobolt on February 2, 2009 9:11 am

    Salam City by Al Rajhi & TAMEER is certainly cancelled

     
  4. Bhagwan on February 2, 2009 9:26 am

    Thank you for putting this list up. I would also like to request you tio check on Memon Investments FZE on their project Frankfurt Tower in JVS.

    One of the things that RERA should make madatory for all developers to inform the investros on the status of the projects.

    If the project has been cancled then the developer must pay back the funds taken from a investor with immediate effect. This should come a a Dubai court ruling to all the developers who have cancled the projects. Also the projects that are on hold, RERA or Dubai Courts should hold back the passports of those developers till such time a government appointed auditor can confirm that the developer is financially sound and when the project starts he can complete it and if not then his accounts could be frozen and the money from that could be paid back to investros.

    I think RERA & Dubai Court should look at this as one of the ways to build confidence in market as well with the investors who have already put their money down.

     
  5. Nick on February 2, 2009 9:36 am

    Kipp – Who compiled this list? Is is meant to be reporting or just gossip mongering?

     
  6. Cassim Hassim on February 2, 2009 11:49 am

    You can add Ivory Towers to the list of projects that have gone sour, Investors are not even sure if this project has been canceled or put on hold but are very sure that they are dealing with a lousy bunch of very dishonest people at Sokook Investment Group. Some investors have paid upto 80% or their contractual obligations and then receive cancelation notices for not fulfilling contractual obligations on time as per payment plan, yet the project which was launched in 2005 has not yet commenced with pilling. Now the developer who is not in a position to refund the investors is trying to onsell the investors units to unweary investors at a huge profit in order to process the refunds. This is disshonesty at its best.

     
  7. rnb on February 2, 2009 1:48 pm

    Sorry for this suggestion!
    Why not post the list so it may be read, then Developers/Investors can come forward and confirm or deny?
    Are the properties mentioned in comments on the list already?
    Possibly then you would have a more accurate listing(I know in Dubai, those words are uneasy bedfellows!)

     
  8. Dean Warner on February 2, 2009 6:58 pm

    That list looks like it came from RERA, so it’s official.

    Type face, font, etc, all looks like their usual stuff.

     
  9. Lynn on February 3, 2009 8:55 pm

    Nice List – but incomplete. There are more projects cancelled and on hold like shown here.
    So, Dean Warner …..might be you are right – this comes from RERA – as always – not 100 % correct and incomplete. Sorry RERA – but those who suffer – know what about they talk.

     
  10. John . P on February 4, 2009 1:24 pm

    does anyone know if Aquarius gate at waterfront is cancelled?

     
  11. H. adam on February 5, 2009 8:43 am

    John.P it seems you and I have the same dilemma. If you would like to discuss please reach out. regards

     
  12. John . P on February 5, 2009 4:07 pm

    Most certainly i would, how can i contact you?

     
  13. Rick Shaw on February 14, 2009 12:11 pm

    Both RERA and the Developers are a bit upset that the list has been published in the first place. The reason for this is that it obviously gives a little ‘transparency’ (at last) within the otherwise extremely murky world that’s the real estate sector in Dubai. However, the fact is that the list that’s being circulated is only a ‘small selection’ of the number of projects that have ACTUALLY been cancelled. For example, according to the list DAMAC has only cancelled a couple of projects when the TRUTH is it has cancelled around 30 projects worldwide (including around 15 PROJECTS IN DUBAI).

    http://37.188.120.15/kipp/2009/01/06/4974/?bnr=1

    It’s about time that RERA and the UAE Government stopped treating investors like mushrooms and told them the real TRUTH about the massive extent of projects cancellation within the UAE. It won’t do this of course as to do so would be admitting that behind the ‘Dubai Bubble’ has well and truly burst (and investors have lost $ billions).

     
  14. Sintra on February 20, 2009 1:51 pm

    Hi, does anyone know if Dubai Sports City should be in that list too? or where can I find more info about it? Thanks

     
  15. PAUL on February 23, 2009 3:19 pm

    The list does not mentioned all the canceled projects by Sama-Dubai,the company has canceled all projects apart from Doha towers..which is now going to be undertaken by Dubai properties.

     

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