Dubai likely to scrap 27 projects

[LahoreEstate]

The Head of RERA (Real Estate Regulatory Agency) in Dubai, Marwan bin Ghalita yesterday revealed that Dubai is considering cancelling 27 projects.

The decision about this issue would be taken by the end of the month. The projects likely to be scrapped off include third party projects handled by sub-developers that are scattered across Dubai.

Ghalita revealed that 25 percent of projects will be cancelled in Dubai, owing to global economic turmoil. Last week the RERA and Dubai Land Department had established a committee to cancel projects in the emirate that are not feasible.

Prices of properties dropped 41 percent during the first three months of the year, as per the report by Colliers. The drop in property prices has already led to project cancellations in the region, worth billions of dollars.

More than half of the construction projects in the UAE are worth $582bn and more. These have been put on hold currently, either following a request from developers to cancel projects or, due to complaints from project investors.

http://www.estatesdubai.com/