Dubai scrapped 217 real estate projects in two years

DUBAI: Dubai has cancelled 217 property projects in the past two years as of May 31, the Real Estate Regulatory Authority has said after completing a review of the industry.

RERA reviewed more than 450 projects and expects 237 of them to be completed "in due course", according to information contained in the Dubai government's bond prospectus.

The total value of property sale transactions plunged to USD 32.5 billion (119.5 billion dirhams) at the end of last year from USD 41.6 billion (152.9 billion dirhams) a year earlier, it said.

Dubai, whose Emirates airline tapped debt markets this month, has set up a USD 5 billion Euro Medium Term Note Program. The bond prospectus, posted on the London Stock Exchange website, said the Dubai government had direct outstanding debt of USD 31.4 billion as of May 20, including 22 billion dirhams at main holding company Investment Corporation of Dubai.

The emirate's economy expanded by 2.4 per cent in 2010 after contracting 2.4 per cent in the year-earlier period, the prospectus said. The real gross domestic product was USD 79.9 billion (293.6 billion dirhams) in 2010.

Home values declined 1.2 per cent in May from the previous month and rents fell by 1 per cent, according to the bank. Apartment prices dropped 1.3 per cent and villas lost 1 per cent. PTI CORR ARV ARV 06140953 NNNN