Hundreds of Dubai Property Projects on Hold
Dubai's real estate watchdog has identified 291 projects that are on hold in the emirate after the property and asset bubble burst in 2009, according to information in a prospectus for a planned sovereign bond issue.
April 25, 2012 10:27 by kippreport
Dubai’s real estate watchdog has identified 291 projects that are on hold in the emirate after the property and asset bubble burst in 2009, according to information in a prospectus for a planned sovereign bond issue.
The Real Estate Regulatory Authority (RERA) also determined that 165 projects were completed since the slowdown while work on 29 projects has not started yet. “The current market situation has led to the re-evaluation of a number of real estate projects and delays in many projects,” the prospectus noted.
Dubai is planning a dual-tranche Islamic bond that could raise at least $1 billion and attract healthy demand as the regional tourism and business hub puts its 2009 debt debacle behind it.
The total value of real estate sale transactions grew to 140.3 billion dirhams ($38.2 billion) in 2011 compared to 119.4 billion dirhams in 2010, according to the prospectus.
During the boom period in 2008, sale transactions reached 260.7 billion dirhams.
Dubai’s property sector has been hit hard by the downturn, with billions of dollars worth of projects put on hold or cancelled, while property prices slumped as much as 60 percent.
High-profile projects that Dubai has put on hold or cancelled as a result of the downturn include Dubai Properties’ Tiger Woods-themed residential and golf course project and developer Nakheel’s kilometre-high tower.
(Reporting by Praveen Menon; Reporting by Firouz Sedarat)