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Dubai’s Rera and the Land Department have formed a joint committee to decide on the projects in the emirate that will be cancelled.
May 7, 2009 11:43 by Aarti Nagraj
The Dubai Land Department and the Real Estate Regulatory Agency (Rera) have formed a committee to assess real estate projects in the city, and decide which ones to cancel, reports Emirates Business. “It is a tedious task and requires a lot of paper work. But the committee has been created to address the issue,” an official said.
While officials could not regulate project cancellations in the past, amendments to Law No 13 now lets them cancel projects that they think are not feasible, Ludmila Yamalova, partner of MAC Davidson Legal Consultants, who was present at the meeting, told the paper.
It’s been close to nine months since the financial crisis hit the region, and while some developers have announced delays or cancellations, the number of projects scrapped in Dubai remains a mystery.
A number of industry reports, however, have given estimates; this week, research analysts Proleads claimed that only 2.4 percent of the 1,289 construction projects in the UAE worth $1.28 trillion, which were under way at the start of the year, have been cancelled. More than 200 projects are scheduled for completion in 2009 as compared to 184 in 2008, said the report.
Last month, a study released by the Kuwait Financial Centre said that Dubai accounted for 91 percent of the $249 billion projects suspended or cancelled in the GCC region.
Earlier in the year, a report by HSBC said that $75 billion worth of projects have been cancelled in the UAE; a Morgan Stanley report put the number at $263 billion.
Marwan Bin Ghalita, the CEO of Rera explained in February 2009 that Dubai’s success was leading to incorrect media rumors about cancellations of property projects in the city.
“Dubai is like a movie star, and just like a movie star everyone is looking at us, adding more pressure,” he told Emirates Business.
Rera had also said that the time that it will be releasing “accurate data next week that would show the true picture of Dubai’s real estate market.”
While we are yet to see that data, it looks like the list of cancelled projects, however long it is, will soon get longer.