Dubai is considering cancelling 27 projects, the head of its real estate regulator said on Monday, as the emirate’s property market slumps in the global downturn
Real estate prices tumbled 41 percent in the first three months of the year, property consultants Colliers said in a recent report.
A collapse 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 United Arab Emirates, worth $582 billion, have been put on hold, Dubai-based market research firm Proleads said in February.
Ghalita said on Monday the committee would cancel projects based on RERA’s decision whether or not they should continue, a request from developers to cancel, or through complaints to the watchdog from project investors.
In February RERA said Dubai developers are likely to delay the delivery of about 20 percent of residential units in 2009 and 40 percent in 2010.
Read Jason Benham’s full article “Dubai mulls cancellation of 27 projects – RERA” in Arabian Business (May 11, 2009).