Terra project put on hold due to high design costs

A Saudi real estate developer has put on hold its Dh9.8 billion Terra housing project in Dubai because of high design costs, which it said had made the development unfeasible at current property prices.

Land Real Estate Investment and Development, controlled by Al Rajihi Investment Group of Saudi Arabia, said it would not begin construction of Terra on Dubai's coastline before property prices recover.

"Our decision to put on hold this big project has nothing to do with the global credit crunch as we have no liquidity problem," said Mohammed Zafar, the company's Executive Director. "The only problem is that the current market prices have made this project unviable given its very expensive design, which is unique. We have completed the design and will start work on this project only when the market rises again," he told Emirates Business at the Cityscape real estate show.

Terra, Greek for land, has an area of about 168,000 square metres and is a mixed-use residential and commercial tower project situated on Dubai's last remaining 15 kilometres of natural coastline. Overlooking the region's premier beachfront community, Dubai Waterfront, Terra offers what the company described as commanding views of the Arabian Gulf, The Palm Jebel Ali and the Waterfront Islands.

"The redevelopment exploits the supreme marina location, putting you in touch with a myriad of lifestyle options close to the water's edge," it said.

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