Dubai ‘kickstarts $3.2bn of stalled property schemes’
Sunday, 13 December 2015 3:05 PM
A total of 51 real estate projects valued at AED12 billion ($3.2 billion) have been resurrected under Dubai government-backed funding initiatives, it has been revealed.
The Dubai Land Department’s ‘Tayseer’ and ‘Tanmia’ initiatives were launched in 2010 and 2011, respectively, and aimed to secure financial support from government or private investors in order to restart troubled schemes.
Under the initiatives, developers registered their stalled projects with the DLD, and sought new sources of funding for them.
According to a report circulated by Zawya Projects, 51 projects worth a combined value of AED12 billion have been kickstarted under Tanmia since the initiative began.
Of those, 12 projects worth AED2 billion were restarted in the past year alone.
Tayseer initiatlly covered 40 projects across Business Bay, Dubai Marina and Jumeirah Lakes Towers (JLT). There are eight developers listed under this scheme at present, according to the report, including Emaar Properties, Al Wasl and ICD-Brookfield.
However, the names of the projects kickstarted under the scheme were not disclosed.
In order to qualify under the scheme, projects need to have adequate infrastructure planned or already in place; a properly managed escrow trust account for off-plan sales under Dubai real estate law; a technical report showing that at least 60 percent of the construction is completed and at least 60 percent of the project has been sold.
Arabian Business has contacted the DLD for comment.