Hundreds more property developments in UAE on hold or cancelled than anywhere else in gulf
Well over 500 projects have been delayed or cancelled in the United Arab Emirates, making it the hardest hit real estate market in the Gulf region, according to a new report.
An examination of 3,000 projects valued at over $1.5 trillion by Dubai based researchers Proleads found that a total of 566 projects are currently on hold or cancelled in the UAE but the impact of the global downturn has been less marked on other countries.
But its report also points out that there is still ‘an extraordinary level of construction’ in the UAE with a total of 1,372 projects under construction or bidding.
‘While some of Dubai’s ambitious plans are among the UAE projects that have been dropped, the Proleads database shows a continuing high level of activity in the emirates which would be the envy of many economies elsewhere,’ said Chris Speller, Cityscape group director.
'In the worldwide shakeout, no region has been immune and, as a result, a strong element of realism has entered the real estate investment landscape,” said Speller.
The reports shows that Saudi Arabia has a total of 442 projects currently in construction or bidding, with 106 on hold or cancelled, while in Qatar, 124 are underway, with just seven cancelled and none on hold.
In Bahrain 148 projects are in construction with 54 cancelled or on hold and in Oman there are 95 underway with eight on hold and none cancelled.
The outlook is also good in Kuwait where there 90 projects underway and just 18 are cancelled or on hold, while Oman has 95, with eight on hold and none cancelled.
But all is not rosy in Kuwait where the latest official figures shows that property sales fell 37.9% in the year to July.
Property sales, especially for residential units, have been falling since the state restricted private firms from residential real estate deals last year.
Experts believe the availability of finance is needed to open up the market. Islamic lender Kuwait Finance House (KFH), said that it had won a verdict against the ministry of justice, opening the way for it to finance private real estate investment in the country.