Developers in Dubai are demanding that buyers keep paying for homes that in some cases haven’t even been started. Builders in the emirate have delayed or canceled projects worth about $330bn, Dubai-based market researcher Proleads estimates.
Emaar, the United Arab Emirates’ biggest developer, isn’t the only one dealing with disgruntled buyers. About 30 filed a claim against Union Properties at the Judicial Authority at Dubai International Financial Center, saying it breached contracts by failing to deliver apartments on time. Nakheel, the creator of palm tree-shaped islands off Dubai’s coast, said it’s assessing which projects will be halted.
“There is a growing distrust between developers and customers,” said Chet Riley, a Dubai-based analyst at Nomura Holdings. “Customers don’t want to pay because they can’t see the development being completed and developers can’t continue building because customers are not paying.”