A disagreement between developers Nakheel and Damac over the future of the Palms Springs project at The Palm Jebel Ali has been resolved, Dubai Lands Department said on Wednesday.
Damac shelved the scheme amid concerns over the mounting cost of construction materials, as previously reported in Emirates Business. However, following discussions with master developer Nakheel and the watchdog Lands Department, Damac, the region’s biggest private developer, has agreed to complete the project.
Mohammed Thani, development and marketing director at Dubai Lands Department, said Damac had agreed to finish Palm Springs “at the same cost and the same conditions”.
He told Emirates Business the main reason the project was shelved was the rising cost of materials. He refused to reveal other reasons behind the decision.
Sultan Butti bin Mijrin, Director-General of Dubai Lands Department, said in a statement the organisation met representatives of Nakheel and Damac and listened to their points of view in an effort to resolve the issue.
He said major concern was to protect the interests of investors and the reputation of the real estate sector in the emirate.
Bin Mijrin praised Nakheel and Damac’s “continual contributions” to the real estate market to ensure the rights of investors.
Nakheel and Damac end Springs dispute