Number of 'on-hold' projects declines in Dubai

31/01/2013 - Dubai Property News Posted by Neil King
Number of 'on-hold' projects declines in Dubai

The huge demand for property investments in Dubai has led to a downturn in the number of "on-hold" building projects.Many construction firms were forced to shelve developments when the global economy came crashing down to earth in 2008-09, as investors withdrew their money.However, the real estate sector bounced back incredibly strongly last year, with traders snapping up AED 154 billion worth of new assets throughout the 12-month period.Now, Real Estate Regulatory Agency - the regulatory arm of the Dubai Land Department (DLD) - has confirmed that a significant number of postponed projects have been given the green light.By the end of December 2012, the number of on-hold construction initiatives fell to 253, which was way down on the 291 reported just nine months earlier, Emirates 24/7 reports.Overall, 187 projects have been completed since 2009 and a further 232 buildings are expected to be finished in due course.The agency has explained the situation in its latest bond prospectus, in which it stated that Dubai has 596 registered developers and 852 accredited brokers. This highlights just how much competition there is in the city's construction sector."Since the price corrections, which began in the middle of 2008, demand has principally originated from end-users," the body stated in its prospectus.Of course, the announcement that huge mega-projects such as the proposed Mohammad Bin Rashid City are set to go ahead will fill investors with confidence.The government has also done all it can to ensure property traders find Dubai to be an accessible place to secure new assets.Towards the end of last year, DLD chiefs confirmed that new reforms would be made in order to offer more protection to real estate investors.Now, people who have been let down by their building developer can receive full refunds on their investment and they will also find it easier to claim compensation if a contractor has broken the terms of a contract.Although such instances are extremely rare in Dubai, it is nice for traders to know that they have such guarantees.Click here for your free property investment guide