FINANCIAL NEWS

Dubai calls off 495 projects worth of $330b

04 Oct 2010

(MENAFN) Dubai’s Real Estate Regulatory Agency said that attributed to the economic meltdown which led property prices to reduce by 50 percent, Dubai’s government has called off 495 out of 980 real estate projects planned in the emirate worth of $330 billion, Arabian Business reported.

Due to liquidity shortages, falling headline real estate prices and rental rates, and increasing market uncertainty and negative sentiments caused projects cancellation.

Only 46 developments have been finished since 2008 while 307 are postponed.

The Agency added that values are expected to dip another 20 percent as 41,000 new homes are put on the market by the end of 2010.

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