If you haven't received the list on email that has been circulating over the past coupel weeks, you will do soon. It will say something like "Dubai has cancelled $76bn worth of property development projects", "I don't know whether this is true or not but certainly scary or what", "$76 Billion worth of projects down the drain" or something similar. The Kipp Report put it up yesterday, but it would be safe to say that the way that others have circulated it have painted Dubai as collapsing. Kipp puts it right:If the list is accurate, then approximately $72.563 billion worth of projects are on hold, and $3.275 billion have been cancelled.
Kipp called a number of the developers on the list to confirm the rumors, and received mixed results. According to the list, Falcon City of Wonders, which it claims is being built by ETA Star, has been cancelled. However, the development is being built by Salem Al Moosa Enterprise.
Yet, Damac Property’s projects that are listed as “on hold,” such as Water’s Edge in Business Bay, and Business Bay: Burjside Boulevard are “experiencing delays,” explained the customer service operator.
So, here is the issue, not much looks to be cancelled - more so things are on hold. This is probably due to needing financing - and so what is happening is that things are being phased, rather than being cancelled. No doubt, if you research some of the list, you will find that some have stalled. But you might find that these will come back to life at a later point in time. Indeed when we get through this lull and we go back over this list, you will find that most of them will be reskinned to bring them to fruition. Or what we will find is that those companies in the UAE who have ready access to cash will be taking these projects on.
The worrying thing that we need to be aware of is that a hold or a phasing can lead to developers going bust, and whilst that may not lead to projects being cancelled in the end - it may lead to investors losing their money....List of losersProjects worth $75bn on hold or cancelled, says HSBC
Labels: cancelled porjects in the UAE, cancelled projects in Dubai, projects on hold in the UAE