Deyaar Development in Dubai Suffering 60 Percent Default Rate

Deyaar developments in Dubai has admitted to a default rate of 60% on works-in-progress, and has agreed to reduce prices in an effort to bring defaults down to a manageable level. “Around 60 per cent of our customers came back to us saying they were unable to pay up on their property.” said Markus Giebel, CEO Deyaar.

Deyaar Park Not "Canceled" -"Consolidated."

Deyaar Park, Mirar Residences and Deyaar Enclave, comprising four million square foot, will be “consolidated,” which we take to mean canceled, but not officially, and investor’s will be given the option of transferring ownership to different projects. One certainly hopes that this is an option rather than mandatory – investors in the canceled  Dubai Trump Hotel and Tower are finding themselves forced to accept another development instead.

Terms will apparently vary depending on the project and a number of projects have been reduced in price. These are the changes:

• Deyaar Park, Mirar Residences – 10% cash back of the paid-up amount and a 50% consolidation option.
• Enclave – 100% refund
• Oxford Tower 30% price reduction
• Fairview Residency – 25% price reduction
• Bristol Residence – 25% price reduction
• Bristol Office- 30% price reduction

It is good to see one of the Dubai developers facing up to the issues rather than burying their head in the sand, although with a 60% default rate, I would imagine that is hard to deny.