Published: 9th September 2013
A new bond prospectus released by the Dubai Real Estate regualtory Agency (RERA), has announced that 217 of a total of 454 projects were cancelled since 2009. The move, which is a direct response to the considerable decrease in sales of property in Dubai, is seen as part of an ongoing effort to align real estate supply with demand in the emirate.
Since 2009, the value of annual real estate transactions has fallen by over AED30 billion, from AED152 billion in 2009, to AED119.4 billion in 2010. RERA went on to state however that the remaining 237 projects were expected to be completed in due course.
The news is seen as a further blow to the Dubai real estate market, which is still reeling from the after effects of the global economic downturn. With a recent Deutsche Bank AG report stating that home values in the emirate declined in May by 1.2% from the previous month, it seems a recovery in the Dubai property market may still be some way away.
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