217 realty projects scrapped in Dubai in 2 yrs

Dubai has cancelled 217 property projects in the past two years as of May 31, the Real Estate Regulatory Authority has said after completing a review of the industry.

RERA reviewed more than 450 projects and expects 237 of them to be completed "in due course", according to information contained in the Dubai government's bond prospectus.

The total value of property sale transactions plunged to $32.5 billion (119.5 billion dirhams) at the end of last year from $41.6 billion (152.9 billion dirhams) a year earlier, it said.

Dubai, whose Emirates airline tapped debt markets this month, has set up a $5 billion Euro Medium Term Note Programme. The bond prospectus, posted on the London Stock Exchange website, said the Dubai government had direct outstanding debt of $31.4 billion as of May 20, including 22 billion dirhams at main holding company Investment Corporation of Dubai.

The emirate's economy expanded by 2.4% in 2010 after contracting 2.4% in the year-earlier period, the prospectus said. The real gross domestic product was $79.9 billion (293.6 billion dirhams) in 2010.

Home values declined 1.2% in May from the previous month and rents fell by 1%, according to the bank. Apartment prices dropped 1.3% and villas lost 1%.