Dubai regulators are gearing up to review all outstanding developments under a new law that gives them authority to cancel projects that do not start construction within six months of being approved by the Dubai Government. They are already considering cancelling 27 projects and are ready to halt additional developments that show no sign of being built and force developers to repay any outstanding amounts.
Marwan bin Ghalita, the chief executive of the Real Estate Regulatory Agency, said the new regulation would bring transparency to the market and encourage developers to follow through with their commitments.
'Many of these projects are from developers that are coming to us and saying "we don’t want to be in trouble",' bin Ghalita said. 'It’s better to cancel them, rather than leave them dangling. It will give the market correct data.'
With the property sector slowing, some developers are having trouble financing the completion of their buildings because buyers are defaulting on their payment plans.
The National, arabianbusiness.com