As property projects finish, so too a downturn

As Cityscape returned to Dubai today, the announcement by the Real Estate Regulatory Agency (Rera) that 48 stalled projects in the city are to be completed is a welcome sign that the economy in general, and the property market in particular, is showing signs of life. Many projects that have stood dormant for the last two years will now have Dh5 billion invested in their completion. Dubai has completed the difficult work of taking stock of which projects could be viable and those that aren't.

From a purely aesthetic point of view, the completion of these projects should go a long way to show that Dubai's infrastructure is reaching a certain maturity. It is no longer a metropolis in the making: it is a metropolis. An end to once seemingly endless construction work on buildings and roads should decrease traffic problems and spur improvements in the parking situation. Perhaps most important of all, the influx of additional accommodation in a market already flush with supply at decreasing prices, means that many expats who were perhaps on the verge of uprooting and returning home, can now afford to stay.

Marwan bin Ghalita, the chief executive of Rera, indicated that the tide is already turning, with the real estate market currently showing 45 property sales a day on average. "Things are moving," he said. "Dubai is today a very affordable place for many people. Two years ago it was not like that. Now it is heaven for a lot of people." It may be heaven for those who can afford to buy or rent cheaper properties now, or those who will finally be able to complete their mortgages, but for others, the problems that began with the downturn have not been resolved.

Crucially, while Rera's latest development is rightly seen as a lifeline to the industry, dozens of projects will never be complete, and in some cases, they have been cancelled before ground was even broken. Certainly, sympathy is in order for those who have lost money on down payments or paid partial mortgages on properties that will never be built. As 48 of these projects reach their completion, hopefully the authorities will also ensure that the circumstances of these investors are considered in any final settlement.