A turnaround comes too fast for stalled projects | GulfNews.com:
"The turnaround in Dubai’s property market had lifted sales values, rentals and investor sentiments. It did not just end there — over the last 12 months, the upturn had also managed to revive the fortunes of those stalled projects that were caught out by the downturn.
The moment an improvement in market fundamentals was noticed, investors and specialist funds came on board to acquire the sick projects and nurse them back into health by taking on the construction, either on their own or with the original developer involved. Dubai Land Department, which was overseeing the revival process, had, of late, been fast-tracking the transfer to the new set of investors as soon as they were able to show serious of intent. According to market sources, more than 50 per cent of the 100-odd affected projects have already gone through the transition.
But the pace of revival has come with unforeseen consequences for those investors who are trying to get in now. “The revival had been easier for the smaller and medium sized projects as the amounts needed were moderate,” said Sameer Lakhani, managing director at Global Capital Partners, an investment firm. “Perversely, the revival in asset values has made the process of revving some of the larger projects — especially in Dubailand — more difficult as the expectations of the various (original) stakeholders have also risen in consonance with the revival of the market."
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