By Anitha Lakshminarayanan
Dubai’s real estate sector fast track their stalled projects.
The revival of the market increase expectations of the original stakeholders.
As Dubai’s property market is heading towards a sustainable development. Several stalled projects are back on track. This turnaround comes as a rise in rentals, sales values and Investor sentiments.
With improved economic fundamentals in the country, the top 5 projects which are back on track are the opus set to be delivered in 2015. Taj Arabia that started in 2005 is set for completion in 2016. Jumeirah Village Circle will be delivered in 2016.The Pad in 2016 and the Living Legends in December 2014.
The upturn in the last 12 months has revived the fortune of several stalled projects as well. The improving market fundamentals brought in investors and specialists to take on construction either on their own or with the original developer.
According to market resources, more than 50 percent of the 100 affected projects have already gone through a transition.
Recent regulatory measures from the government have brought in sustainable development to Dubai’s fastest growing real estate. The regulation plays a major role in reviving the fortune of Dubai’s stalled projects as well.
More than 50 percent of the 100 odd, affected projects have already gone through a transition. In the first flush of revival of Dubai’s stalled projects, the processes were simple where in the investors would find a particular project that stood a good chance in an improving market place such as downtown, and business bay. Put up a proposal to the land department and see how they could square off the original buyers in the project.
Dubai Land Department has overseen the entire recovery process, were also fast tracking the transfer to a new set of investors. But here comes a challenge in the pace of the revival process as new investors get in now.
According to the top official from Global Capital Partners “The revival has been easier for small and medium-sized projects though difficult for larger projects in Dubailand.
“Moreover, the original stakeholder’s expectations have raised consonance with the revival of the market”.
In the flush of revival for Dubai’s stalled projects, the processes were quite straightforward. Now there’s a multiplier effect for those original investors who had paid a size-able amount of the upfront fee to get a discount on the sale price.
Some of the legal hurdles turn onerous in these stalled projects, however in Dubailand many stalled projects are gaining momentum in the revival process, and they plan to complete the project in 2016.
Market feedback also suggests that negotiations are on for larger stalled projects. The deciding factor would be to find common grounds among stakeholder’s expectations and what new investors are willing to pay.
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