Construction works on many projects in Dubai progress steadily, but many developments are still in a need of funding. Dubai property prices have fallen by more than 60% since the peak of 2008, according to real estate professionals.
Tayseer programme, set up by the Dubai government last year to arrange funds for various stalled projects in the city, recently has started to provide financial services to property developers.
A Jumeirah Lakes Towers (JLT) project has becomes the first venture to receive funds under this programme. The Dubai Land Department announced recently that Mashreq is set to finance Dh65 million (US$17.6m) to Al Manal Development, to complete the Lakeside Residence, a partially built 35-storey tower.
Any project availing of the Tayseer programme needs to register with the Dubai Land Department. Builders and developers are also required to meet certain requirements, including an escrow account for receiving buyer payments. It is mandatory for such projects to move on their construction schedules.
Tayseer will mainly focus on developments in Dubai, facing shortage of funds to complete the partially build projects due to the global financial crunch.
