Dubai Lagoon, a stalled Dh3 billion (US$817 million) residential project, will go ahead, the Dubai Real Estate Authority says, dismissing earlier reports that the development had been cancelled. The project is being developed by Schon Properties at Dubai Investment Park (DIP) and has already taken downpayments from scores of investors since its launch in 2005. "The project, which was initiated before the launch of Rera, saw some delays," said Marwan Bin Ghalita, the chief executive of Rera, in response to a flood of complaints over the lack of progress.
"Rera, in its monitoring responsibility, had to respond to investors' complaints and safeguard their rights and interests." The project was launched as an affordable housing development made up of 51 buildings, each of around eight storeys high. But construction on the first eight buildings stalled in May, with the developers blaming various factors, including planning issues relating to a motorway through the area, soaring building costs and the collapse of a joint venture between key contractors.
The company is now in the process of appointing additional contractors before resuming construction. Rera has also met with investors in the project and said that an auditor had been appointed to assess the developer's accounts. It also pledged to better monitor the project's progress from now on. "An appraiser shall be appointed to examine construction works," said Mr Bin Ghalita. agiuffrida@thenational.ae