Register for our free newsletter

 
 
Latest News

Many Dubai developers refuse to admit project cancellations

A number of projects that are officially on hold may have already been cancelled…

October 28, 2009 9:02 by



A number of projects that are officially on hold may have already been cancelled, reported Maktoob Business on Wednesday. The Dubai-based business website claims that many developers are concealing the status of their projects for fear of having to pay back investors.

“In the 18 months before the downturn a number of projects were announced that were not financially viable and therefore unlikely to see completion,” said Tahir Akhtar, chairman of Dubai Business Advisors, and a UAE property investor.

“Developers do not want to admit this because then they will have to return the funds,” he added.

An estimated total of $408 billion worth of real estate projects in Dubai are either cancelled or on hold as of September, claims the Maktoob Business, citing the Kuwait Financial Centre.



7

Tags: , , ,

7 Comments

  1. rb on October 29, 2009 6:54 am

    In June ,’ 09 RERA had announced that 26 projects have been cancelled in the UAE & that they would publish the list shortly. A list did appear in the press which , was the unoficial version . Until now RERA has not published this list. Developers have to provide full refund to investors on these cancelled projects.

    RERA should immediatelly publish this list & have these ‘fly by night ‘ devlopers refund the investors funds. Mnay of them are not refunding but asking investors to tranfer the amounts paid to their other projects.

    Full refund to investors will go a long way in restoring confidence in the market.

     
  2. Moira on October 29, 2009 7:03 am

    If you register for a free trial on http://www.cityscapeintelligence.com you can check the status of over 4,000 individual projects in the GCC, including on those that have been cancelled, the details are provided by Projects and Leads, they have accurate project status as they check site activity rather than speaking to the developers

     
  3. Peter Peter on October 29, 2009 6:59 pm

    Deyaar have no hope what so ever to complete their Jebel Ali residential Towers project as Limitless have apparently given up on creating the infrastructure there. Deyaar is using this as a lame excuse for not yet starting the project but there are plenty of rumors that Deyaar had not acquired the land for the project till at least one year AFTER they started signing contracts with investors and taking their money. And yet they are not giving any clear and unequivocal statement about this project to investors like me who are asking for our money back.

    Our contract clearly says that if the project can not be finished within 6 months of the stated completion date then the investor is entitled to a total refund. It is very clear that it is impossible for Deyaar to meet its deadline and yet they refuse to refund our money which presumably/ hopefully is sitting in an escrow account.

    All that Deyaar will manage is to delay the inevitable but they are also denying us our right to invest our money elsewhere today ! This is really very churlish behavior on the part of Deyaar .

    RERA must show that it is in deed a regulatory authority with the power to render justice to investors and not just a toothless tiger able to roar but unable to bite !

     
  4. Parvez Akhtar on October 30, 2009 7:57 am

    I believe if investors are not protected in Dubai than no investor will invest in future.The government should revalue the property for the investors so that they start paying their installments and share the loss with Developers.They should consider this as TOXICK ASSET like Obama said in USA and revalue the property.I think if they only supported developers and let the investor die there will be no progress in Dubai.
    Thanks,
    Parvez

     
  5. Papu Kangi on November 1, 2009 8:31 am

    The rule of life is, what goes up must come down,. Just like in the US, the values kept going insanely up and everyone boguht properties as a get rich fast scheme. Obviously, the prices would not stay inflated for ever. It’s comin’ down and it’s hurtin’ the people involved in the real-estate. People who took the risk have to pay for it now. The values will NOT go up again for decades to come so don’t keep your hopes up high. If you’re invested, you’re S**t out of luck. Try to get out soon as possible. No the government should not interfere. The US government is doing it right now and the people will suffer the consequences for years to come. the US government is a puppet of the rich who have a stake in the Real-estate corruption and it’ll obviously try to save them. The Dubai government is not in that situation and does NOT have to bail out the greedy.

     
  6. rb on November 2, 2009 7:26 am

    AL FARAA PROPERTIES has collected money on no of projects eg ” Image Residences ” at Jebel Ali DownTown , where no construcion has even started more than 18 months after launch.

    They are holding investors funds & refuse to ackowledge cancellation of the project.

    Mr Peter, suggest you pursue legal options liek large no of other people already have.

     
  7. victim on May 31, 2010 7:11 am

    Dear rb: legal option? to spend even more money on a lost case? No thanks! Peter, make sure that you don’t pay anymore and take it as a bad investment and move on.

     

Leave a Comment