Dubai - Arabstoday
Dubai\'s stalled real estate projects could be granted a new lease of life under an initiative by the Dubai Land Department and Wasl Asset Management Group. The agreement, signed on Monday, will see the DLD and Wasl pick on-hold projects in the emirate and offer them for sale or lease to investors in an effort to restart developments that were abandoned or stalled during the financial crisis. Majida Ali Rashid, senior director of planning and institutional development, president of the Center for Promotion and Management of Real Estate Investment, explained that the DLD and Wasl would work together to provide attractive packages to investors. \"Starting from identification of the property, proposal [for buying the intended project] and the evaluation. The proposal will recommend the appropriate price,\" the department said in a statement.\"Necessary steps will be taken in regard of the liquidation of project, settlement of rights and legal obstacles and restrictions associated with the project.\" But a Dubai-based property analyst, who wished to remain anonymous, told Gulf News on Monday that he was sceptical that buyers would be interested in stalled projects. \"There is virtually no investor interest in half-built projects at the present time,\" he said. He said that while it was positive that the DLD is seeking to improve transparency in this area, \"of more value to the market would be for RERA to release the details of the 217 projects that they have announced are now officially cancelled.\" Meanwhile, Matthew Green, head of research at CB Richard Ellis, told Dow Jones yesterday that investors will be cautious about re-investing in stalled projects. \"The added transparency will help bring confidence back into the Dubai\'s real estate market but investors are still hesitant about purchasing off-plan property and are more focused on purchasing tangible income generating assets such as established and in-demand office space which have long-term leases and guaranteed income,\" he said.