Authorities in Dubai are getting set to review all pending development projects. A new law gives authority to the Real Estate Regulatory Authority (RERA) and the Dubai Land Department to cancel projects that do not start construction within six months of approval from the government. Currently there are 27 projects that are being considered for cancellation and RERA is ready to look at additional developments that do not meet the rules.
While some of the projects that are being cancelled are due to delays and problems with the developers, some companies are actually asking the government to cancel their plans, according to the chief executive of RERA. “Many of these projects are from developers that are coming to us and saying ‘we don’t want to be in trouble’,” said Marwan bin Ghalita, RERA’s chief. “It’s better to cancel them, rather than leave them dangling. It will give the market correct data.”
A committee made up of officials from RERA and the Dubai Land Department was recently organized to review the developments. According to Mr. bin Ghalita, there are 427 developers and 695 projects in the works. He expects approximately 25 percent of these to be cancelled.
Useful Resources
