thanks
david connolly
connollydavidj@hotmail.com

Comment by David Connolly | February 14, 2009

Nick Cifonie
http://www.realestateinvestormachine.com

The dangers for investors are still quite real regardless of this single project’s outcome. Many developers are faced with bankruptcy if they *do* go ahead with projects that they sold off cheaply a few years ago:
http://www.arabianbusiness.com/516690-shaky-foundations

So it is probably the canary in the coalmine – even if it just went through a queasy patch and recovered, you’d still be wise to get to the surface sharpish.

Let’s hope that Damac sees sense on this one.

We’re watching this closely and are keeping our readers informed with our latest blog post
‘Palm Springs is a Go’, Damac Reportedly Tells Investors

After all, Sheikh Mohammed is on record as saying “Many leaders promise, we deliver.“ Is it too much to ask that business in Dubai also live up to this ideal?

I am hoping that RERA is taking a keen interest in matters and will swing into action to protect investors and the reputation of Dubai. If RERA decide just to sit back and watch events unfold then people will be questioning exactly what they stand for.

Ultimately, how the Dubai authorities decide to deal with the current DAMAC scandal will be a reflection on the values which Sheikh Mohammed wishes to uphold.

Why so many delays with my new apartment?

In May 2006, I, as many others in Dubai, were attracted to the much advertised offer of buying our own flat for less than we are currently renting.
It all looked fantastic as we were told the flats were scheduled for occupancy by the end of August 2006, my rental contract was due to expire in December so I was assured that the flats would be well and truly ready before then. I thought it pretty normal for Dubai when I was told that it would actually be at the end of October.
However, as the months were passing by, my annual rent became due and guess what; the flats are now promised for the end of December. I managed to extend my rent for one month, again trusting what Tamweel were quoting.( I am obviously too naive as they then quoted the 31st January and again I believed them).
Well guess what, today they say the end of February. I called a site agent from Nakheel who say’s it’s more likely to be another three months.. Tamweel are not commenting, I want to cancel so that I can use my deposit towards my rent to avoid eviction but Tamweel are not willing to help.. Does anyone know what’s going on? Surely I am not the only one taken in by this deal.
Homeless and Helpless
Dubai

Comment:

Posted by Joanna Henry
Dear Homeless and Helpless, I really sympathise with you so much. Last year I made the catastropic mistake of buying an apartment in Jumeriah Lake Towers from so-called reputable real estate company Vakson Freehold Properties. I narrowed my choice down to three different developments, but selected Vakson’s JLT offer because I was told it would be completed at the end of this year. Supposedly construction had started. The sales lady told me all this, and I believed her. When it came time to pay my second installment I checked on the progress of the apartment and was told that it was now 1 year delayed. I was so angry. My apartment was supposed to be an investment. Now my money was effectively dead money because of the 1 year delay. I have since discovered that I was lied to just to get the sale. I tried to talk to Vakson about it, but they were very evasive and did not reply to me for weeks. I felt I would lose my deposit (my only money in the world), because of this horrible situation. Vakson gave me the option to cancel but lose 5 per cent of my money which is too much in my book, considering I had been lied to. The whole situation made me physically sick with worry. Eventually after a lot of hard work and chasing contacts I managed to sell my apartment on a zero premium, effectively losing alot of money because I had by that stage left Dubai and the exchange rates into my currency against the dirham were awful. The whole experience has left me angry, cyncial and bitterly resentful. I wonder if 7 days will print this, but if Vakson want to reply then they should. They are liars. Their sales people are liars. They lied to get a sale and I nearly lost my money. I was a fool for ever considering buying in Dubai. I sincerely hope that Nakheel will offer you 100% of your money back. These companies make me sick. They would never get away with it in another country, but in Dubai there are no rules, and no consumer protection. I feel for you most deeply. I think you should shout about this from the rooftops. Because of their stupidity in badly managing the project and not telling you the truth, you are the one to suffer. I urge all people considering buying in Dubai off-plan to think again. Look at what has happened with JBR. I wish you the best, and hope to god you get this sorted out. Please keep us all informed. Joanna

DAMAC sales offices in whatever country are going to have a lot of protesters.

Also when the word ” DUBAI ” is mentioned in the future people will immediately think of ” Palm Springs and Damac “- how damaging will this be for Dubai’s property market?.

Light House Affair Dubai Marina 2006

http://property.timesonline.co.uk/tol/life_and_style/property/article720700.ece

The solution End 2007:

“…spoke to an investor who told me a deal has been signed up tks to the Rulers Office intervening. Amlak will take over the project. A building double the height will be built. Original buyers get bottom half at their original purchase price and top half is sold at a profit by developer to subsidise their losses on the bottom half. At the end of the day the project at least breaks even and Dubai’s reputation as a safe place to invest sort of remains intact until someone similar slips up. SIMPLE. Any votes for which developer will be next to create problems?

http://www.skyscrapercity.com/showthread.php?t=128359&page=29

Damac employs over 6000 employees and I am sure that some of them, in senior positions, specially in their legal department, are very doggy, to say the least. The legal advice given to the Senior Leadership in cancelling the Palm Springs Project is seriously flawed and Damac Properties will pay “big times” financially and with their reputation if matter proceeds to courts.

Nakheel has already discredited Damac’s chairman, Hussain Sajwani statement and Force majeure clause by stating that:

1. plot purchased for Palm Springs has been delivered to Damac
2. It is in a premier location (better than before)
3. They communicated the revised master plan with Damac ten months ago
4. Damac Properties assured, Nakheel, in February, that Project will be completed
5. Modification to the master plan cannot be considered Force Majeure because modifications, revisions and alterations are already covered in clauses 13,1 and 13.2 of the 22 page contract and
6. Only an idiot will consider the enhancement of the Palm Jabel Ali an Act of God (Force Majeure!) (Act of God? NO Nakheel the Master Developer!!)

There is no shame in admitting a mistake, especially if it is made on a advice based on ignorance of Law of Tort.

Damac Leadership should correct this mistake by sacking their legal boffin and compensates its investors fairly and honourably, as a matter of urgency, before their so called $30 billion dollar portfolio disappears in the sands of Dubai or to its competitors and rivals in the Real Estate Industry

Damac Victims are not alone

Posted by Falcon, Munich, Germany on 1 April 2008 at 03:00 UAE time

The victims of Damac are not alone. They bring to daylight what happens day by day in Dubai.

We bought 2005 Falcon Tower JLT directly at Nakheel.

We paid 45% until June 2006.
In August 2006 we got a letter from DMCCA. Falcon will not be built – a decision of Nakheel.

But we were told the Falcon Tower would be transfered to AL Fajer Properties, nothing would change for the customers.

Today, 2008, we are getting letters from the lawyer of Al Fajer Properties trying to cancel every right to our purchased apartment.

We have got our own lawyer – but they have refused to correspondence with him.

The case is with RERA – but until today without any response”

To the comment I read now here about Nahkeel: BELIEVE Nakheel…..because..!!!

Yes it would be wonderfull if we could,believe them…. because this is a 100 % Government owned company.

But we are so sorry to tell you, by our experience we got with Nakheel (100 %) Government, DMCCA ( 100%) Government, absolute agressive letters from lawyers of Al Fajer Properties (President Sheikh Maktoum Hasher Al Maktoum)…….to believe that not both of theme Nakhell and Damac responsible for this… this is only a DREAM.
We have once loved Dubai so much. By the behavior they show us today , they have distroyed all our illusions about contractual fairness in Dubai.
The once given written 100 % confirmations today for them just water under the bridge.
The new image of Dubai, with the message to their valued costumers and frequent tourists:
Take your money back – shut up – go home – you have vistit us 8 years – thats enought – please dont annoy us – whish you a nice flight – and please….never come back.

inform everbody as soo as you can and then see the reaction change just as quick!!