RERA may cancel 90,000 real estate units in Dubai

RERA, Dubai’s real estate watchdog is carrying out a financial review of about 90,000 real estate units due to be delivered over the next five years to assess their viability.

“We are reviewing more than 90,000 units that will come to the market from today to 2016,” Marwan Bin Ghalaita said on the sidelines of a meeting in Dubai.

“Some people do not like the word cancelled, they keep saying delayed, delayed, delayed. Sometimes we have to face the truth and if a project is not good for Dubai then we have to admit and say it is cancelled.”

Ghalaita said on March 17 that Dubai had 220 residential real estate projects ongoing this year.

Dubai’s property sector was hit hard by the downturn, with billions of dollars worth of projects put on hold or cancelled amid tumbling real estate prices.

Speculators caught with multiple properties and little chance to turn a profit fled the market and defaulted on purchases, while other buyers continued to honor their contracts, often paying installments even after work was halted in the aftermath of the crisis.

About 50 percent of Dubai real-estate projects were cancelled or suspended after the collapse, included branded developments such as Dubai Properties’ Tiger Woods real estate project.

From: Arabian Business