Hundreds of Dubai Property Projects on Hold

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)

Tags: Dubai, Real Estate Projects, sovereign bonds, tourism, UAE

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6 Comments

Bad feeling on April 25, 2012 2:40 pm

Nothing new in the stormy and fishy Dubai RE market. While RERA still speak about on hold projects that will never be delivered, that the moneys in the so called escrow account are gathering interest for RERA, honest investors are in jail for bounced cheques. This is called day light robbery in normal countries. Why is RERA not cancelling these projects and giving the money to the investors?
Appliance Dolly For Moving on April 25, 2012 7:26 pm

I really enjoy the blog article. Will read on…
chaz on April 26, 2012 4:13 am

on and on this goes.
It is a pity that RERA is not doing its job.
Most of these projects will never see the light of day.
Cancel, recompense purchasers and try and recover.
This just leaves a permanent stain on Dubai the longer it goes on.
Tarek Aziz on April 26, 2012 7:33 am

Having met many HNWIs investors from Germany, UK, India, and S.Africa in the last 6 months, one issue is very clear, except for Indians (who are bargain hunting) all the other investors have clearly stated that they have absolutely no interest in investing in Dubai. Many are going to Austalia for investment.
Dubai Investors on May 4, 2012 6:12 pm

Dear Kipp Report

Perhaps some of your readers who invested in Dubai’s property market, and who are currently stuck in limbo, whilst developers are holding their funds… they might like to sign the below desperate, yet polite request for RERA to offer some support to the investors?

http://www.ipetitions.com/petition/dubai_investors/
Al Attar Properties on May 7, 2012 4:19 am

Just google “al attar investors” to see the tip of dark iceberg about the properties in Dubai.