Dubai UAE News from the Press Property Market Disaster and More

  • April 2008
    M T W T F S S
    « Mar   May »
  • Middle East Unrest Update

  • Talk of the Town

    Jo Hopworth on Justice For Natalie – Na…
    Mariam on Criminal Complaint filed in Ge…
    Martin Kraeter on ACI Dubai Funds filed bankrupt…
    Independent Observer on Iranian’s lawsuit reveals roya…
    Rado on DubaiTouristen landen schnell…
    Dubai Citizen on Al Fajer Properties Case…
    Dane on Outlook in concrete- Dubai Wor…
    jamesl fayad on RERA Dubai – Dubai Prope…
    Jacques on Malika Karoum finally arrested…
    James Brown on ACI – Alternative Capita…
    Journalist on Al Fajer Properties-500 Invest…
    ron oakeley on ACI – Alternative Capita…
    Benson Fu on Shahram Zadeh against Al Fajer…
    Monika on RERA – Dubai mulls cance…
    Ali Varahram on Shahram Zadeh against Al Fajer…
  • Top Rated Comments

  • Top Posts

  • RSS Dubai United Arab Emirates Property Real Estate Debt Fraud Developer Investor Court News

    • Criminal Complaint filed against Al Fajer Properties Sheikh Maktoum
      Criminal Complaint filed in Germany against Sheikh Maktoum Hasher Maktoum Juma Al Maktoum CEO of Dubai Developer Al Fajer Properties The Dubai Sheikh who mislead and extort a German Couple  Germany – Dubai 2011 A German elderly couple , today 80 + 50 years old who have been Dubai Tourists since a decade, bought in 2005 an apartment at Nakheel´s Dubai Residen […]
    • UAE: Human Rights Blogger, Sorbonne Lecturer Charged With ‘Humiliating' Officials
      source Human Rights Watch www.hrw.org (Beirut) - The United Arab Emirates attorney general should immediately drop all charges against five pro-democracy activists to halt their trial, Human Rights Watch said today. The charges of "humiliating" top officials relate solely to the defendants' peaceful use of speech to criticize the UAE governmen […]
    • Nakheel Dubai Sunland Case
      June 5, 2011After 21 hearings, Chris O'Donnell, the Australian chief executive of Dubai's major developer, Nakheel, came to the defence of his former colleagues Matthew Joyce and Marcus Lee. Mr Joyce and Mr Lee are accused of profiting from the sale of land that had been earmarked for a colossal high-rise development, which was to include the futur […]
    • Dubai Nakheel CEO decided to leave the company
      Dubai June 7, 2011 Nakheel said on Wednesday that its CEO Chris O'Donnell had left the company "after completing his contract terms". O'Donnell, an Australian who joined the developer in 2006, said he had decided to leave Nakheel following five years spent with the company, the statement added. O'Donnell has overseen a traumatic time […]
    • Owner of Dubai Developer Damac Hussain Sajwani files case against Egypt corruption ruling
      Dubai property developer Damac said on Tuesday it had filed an international arbitration case against Egypt over a land dispute and the conviction of its chairman and owner, Hussain Sajwani.A Cairo court last week sentenced Sajwani in his absence to jail and ordered him to pay a $40.5 million fine in connection with his 2006 purchase of land at Egypt's […]
    • Dubai Palm Jumeriah - Investors plan to take legal action
      Investors in Dubai Palm Jumeirah’s Golden Mile complex will this week serve the developer behind the project with a legal ultimatum to hand over their units or issue them with a refund.Up to ten investors in the luxury complex plan to issue Souq Residences with legal notice in a bid to force a resolution to a dispute that has been ongoing for more than a yea […]
  • Top Rated Posts

    • 470,517 visitors 2010
  • Disclaimer 7 Stars Dubai

    This Website of the Blog 7starsdubai.wordpress.com and 7starsdubai.com content still existing media releases and comments from reputated press and websites only. The content of this Website focus to consumer protection for Investors of the Dubai Property market, the UAE and the Middle East. Press Article from the international Press who report about Fraud in relation with Property Investment and Real Estate Developer Investor Disputes in Dubai and the UAE as well reports from the Press about other criiminal acts and Civil Real Estate cases, Lawsuits before the Court in Dubai, the UAE or other countries. Furtheron we show reports about consumer protection and human rights in the Middle East. Actual Topics about the Unrest in Middle East. The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. The content of this site does not constitute advice or a recommendation by us.Communications and should not be relied upon in making (or refraining from making) any decision relating to investments or any other matter. You should consult your own independent financial adviser and obtain professional advice before exercising any investment decisions or choices based on information featured in this Web site. We can not be held liable or responsible in any way for any opinions, suggestions, recommendations or comments made by any of the contributors to the various columns on this Web site nor do opinions of contributors necessarily reflect those of us.In no event shall we be liable for any damages whatsoever, including, without limitation, direct, special, indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, or loss of use, arising out of or related to this Web site or the information contained in it, whether such damages arise in contract, negligence, tort, under statute, in equity, at law or otherwise. Comment Rules: Although the administrators and moderators of 7starsdubai.com will attempt to keep all objectionable comments off this Blog, it is impossible for us to review all comments . All messages express the views of the author, and neither the owners of this Blog, nor the administrator of this Blog will be held responsible for the content of any message, comment. By agreeing to these rules, you warrant that you will not post any messages that are obscene, vulgar, hateful, threatening, or otherwise violative of any laws. The adminstrator of this Blog reserve the right to remove, edit, move or close any comment (message) for any reason This Blog content still existing media releases and comments from websites only. The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. The content of this site does not constitute advice or a recommendation by us.Communications and should not be relied upon in making (or refraining from making) any decision relating to investments or any other matter. You should consult your own independent financial adviser and obtain professional advice before exercising any investment decisions or choices based on information featured in this Blog. We can not be held liable or responsible in any way for any opinions, suggestions, recommendations or comments made by any of the contributors to the various columns on this Web site nor do opinions of contributors necessarily reflect those of us.In no event shall we be liable for any damages whatsoever, including, without limitation, direct, special, indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, or loss of use, arising out of or related to this Web site or the information contained in it, whether such damages arise in contract, negligence, tort, under statute, in equity, at law or otherwise. Copyright: The copyright to the text of the blog is held by the author or link as source provided, where applicable. All images displayed are copyright their respective owners and are used either under licence or under the fair use provisions of international copyright law. The information contained in this Web site is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved. Given the changing nature of laws, rules and regulations, and the inherent hazards of electronic communication, there may be delays, omissions or inaccuracies in information contained in this site. Accordingly, the information on this site is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. Before making any decision or taking any action, you should consult the administrator of this website. While we have made every attempt to ensure that the information contained in this site has been obtained from reliable sources, 7starsdubai.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in this site is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will 7starsdubai its related partnerships or corporations, or the partners, agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this site or for any consequential, special or similar damages, even if advised of the possibility of such damages. Certain links in the Web site connect to other sites maintained by third parties that may or may not be presented within a frame on the Web site. 7starsdubai.com has not verified the contents of such third party sites and does not endorse, warrant, promote or recommend any services or products, that may be provided or accessed through them or any person or body which may provide them. 7starsdubai.com has not issued or caused to be issued any advertisements which may appear on these Web sites. We do not review, monitor or endorse any third party web sites linked to Our Site and We are not responsible for the content of any web site linked to Our Site. Your access to any web site that links to Our Site is at your sole risk. We are not responsible for the information, material, products, or services contained on or accessible through such other web sites and will not be liable for any form of loss or damage arising as a result of or in connection with your visits to such web sites. Any links to other web sites are provided merely for the convenience of the users of this Site and the inclusion of these links does not imply an endorsement of the linked web sites or the content therein. In addition, you agree not to link your web site or any other third party web site to Our Site or frame Our Site as part of any other web site without Our express prior written consent. We reserve the right, at any time and for any reason not prohibited by law, to deny permission to anyone to link a web site to, or frame, Our Site. We reserve the right to withdraw Our consent at any time to a link to, or framing of, Our Site at Our sole discretion without notice. Your use of this Site and the operation of these Terms and Conditions shall be governed by and construed in accordance with the laws and regulations of and applicable in Germany You agree, acknowledge, and submit to the Court in Germany having non-exclusive jurisdiction over all and any dispute or difference between us arising out of or in connection with this Agreement. Please review these Terms and Conditions carefully before using this Site. Your use of this Site indicates your irrevocable agreement to be bound by these Terms and Conditions (as may be amended by Us from time to time). If you do not agree to be bound by these Terms and Conditions please stop accessing and using this Site immediately. Warning: We are aware that several times Cybercriminals mirrowed our Website and posted on several Forums, Website comments by misuse of our email adresses. These Cybercriminals registerd several similar looking Domains and installed several 1:1 mirrowed Websites which look like our Website 7starsdubai. We have already taken the necessary steps by filing criminal complaints against the Individuals behind this Identity theft an Cybercrime, by misusing fraudulently our Blog Identity 7starsdubai. In Search engines like Google, Yahoo, Bling and others you should always take a close view to the links. If this links do not originaly start with www.7starsdubai.com or http://7starsdubai.worpress.com/.... you will end on a faked mirrowed modificated Website. The genral Background of this Cybercriminals is a Stalking and Smear campaign, faking stories for their personal use, to discriminate Persons with the goal to destroy their reputation.
  • RSS ZDF Heute Germany

    • Untitled
    • Behörden lassen fünf Londoner Hochhäuser evakuieren
      Nach Grenfell-BrandkatastropheRadikale Maßnahme in London: Die Behörden haben wegen Brandgefahr fünf Hochhäuser räumen lassen, die eine ähnliche Fassade wie der Grenfell Tower haben. Die Anwohner waren überrascht.Video Brandursache gefunden Video Brennende FassadenVideo Wut und Trauer in London
    • Viele Menschen nach Erdrutsch in China vermisst
      Schwerer ErdrutschDie Dorfbewohner hatten keine Chance, als das Unglück am frühen Morgen passierte. Die Erdmassen begruben ihre Siedlung unter sich. Schwere Regenfälle hatten den Berghang aufgeweicht. Das Dorf Xinmo war unter Touristen beliebt.Video Archiv: Dutzende Vermisste
    • Anschlag in Mekka vereitelt
      Saudi-ArabienDie Polizei in Saudi-Arabien hat einen Anschlag auf die heiligste Stätte des Islam verhindert. Offenbar war ein Attentat in der Großen Moschee in Mekka geplant. Ein Mann sprengte sich in die Luft. Das Innenministerium hat einen ersten Verdacht.Video Pilgerfahrt "Hadsch"
    • Trump wirft Obama Untätigkeit vor
      Russland-AffäreUS-Präsident Trump glaubt, russische Hacker hätten die USA angegriffen. Das habe Präsident Putin selbst angeordnet, und die Vorgängerregierung unter Obama hätte das gewusst. Der ungewöhnlichen Attacke liegt ein neuer Bericht zugrunde.Video Politkrimi in WashingtonVideo James Comey sagt vor US-Senat ausVideo Trumps Minister in Erklärungsnot […]
    • "Mercrons" Harmonie dominiert EU-Gipfel
      BrüsselÜblicherweise treten die Staatschefs nach einem EU-Gipfel einzeln auf. Doch Angela Merkel und Emmanuel Macron demonstrieren in Brüssel Einigkeit und Nähe. Gemeinsam treten sie vor die Presse und berichten, ganz und gar übereinstimmend, von den Ergebnissen. Doch unter der Oberfläche schlummert auch Konfliktpotential.Video Abschluss des EU-GipfelsVideo […]
    • Die Sorgen der EU-Bürger in Großbritannien
      Nach dem BrexitDie Vorschläge der britischen Premierministerin Theresa May für ein weitreichendes Bleiberecht der EU-Bürger in Großbritannien stoßen bei Betroffenen auf Skepsis. Viele EU-Ausländer vertrauen der Konservativen nicht mehr. (Video)
    • Union stabil vor der SPD
      PolitbarometerMit dem Programm-Parteitag in Dortmund will sich die SPD für die Bundestagswahl rüsten. In der Wählergunst bleiben die Sozialdemokraten im neuen ZDF-Politbarometer weiterhin hinter der Union. Das gleiche Bild in der K-Frage: SPD-Herausforderer Schulz liegt deutlich hinter Kanzlerin Merkel.Interaktiv Klicken Sie sich durch die ZahlenVideo Politb […]
    • Die Probleme des Kinderfasten im Ramadan
      SchulkinderNoch bis 24. Juni dauert der muslimische Fastenmonat Ramadan. In dieser Zeit essen und trinken viele Muslime erst vor Sonnenauf- und nach Sonnenuntergang. Auch immer mehr Schulkinder halten sich an die muslimische Fastenzeit. (Video)
    • Golfstaaten stellen Forderungen an Katar
      Diplomatischer Konflikt um EmiratUm im Streit zwischen Katar und anderen arabischen Ländern voranzukommen, haben die Golfstaaten nun Forderungen gestellt: Unter anderem soll Katar den TV-Sender Al-Dschasira schließen und einen türkischen Militärstützpunkt stilllegen. Ob Doha auf die 13 Punkte umfassende Liste eingeht, ist fraglich.Video Katar in der Isolatio […]
    • Einigung: Gesetz gegen Hass im Netz kann kommen
      Veränderter EntwurfAm Gesetz gegen Hass im Netz von Justizminister Heiko Maas gab es viel Kritik. Nun haben Fachpolitiker von Union und SPD eine Einigung erzielt. Der Entwurf werde noch an einigen Stellen geändert, hieß es, dann könne das Gesetz noch kommende Woche im Bundestag verabschiedet werden.Video Maas gegen FacebookVideo Bundestag debattiert Hass Vid […]
    • Oberverwaltungsgericht verbietet G20-Protestcamp
      Vor G20-Gipfel in HamburgDas Hamburger Oberverwaltungsgericht hat das von den Gegnern des G20-Gipfels im Stadtpark geplante Protestcamp verboten. Es handle sich bei dem Camp nicht um eine grundrechtlich geschützte Versammlung, entschied das Gericht. Gegen die Entscheidung sind keine Rechtsmittel möglich.Video Attac: Von uns geht keine Gewalt ausVideo Kabelbr […]
    • Bundesregierung stellt sich hinter Ates-Moschee
      Angriffe aus AnkaraDie vorige Woche eröffnete liberale Moschee in Berlin sorgt für neuen Ärger mit der Türkei. "In aller Klarheit" hat heute die Bundesregierung die Kritik der türkischen Religionsbehörde an der Mosche zurückgewiesen. Solche Äußerungen könnten den inneren Frieden in Deutschland gefährden.Video "Ein mutiger Versuch"Video Au […]
    • Spanien schlägt auch Serbien
      U21-EM in PolenDer Favorit bei der U21-EM in Polen siegt weiter. In Bydgoszcz erzielte Denis Suarez (38.) den Siegtreffer für Spanien gegen Serbien. Die Iberer standen bereits vorher als Gruppensieger fest. (Video)
    • Von Sturm und Zerstörung zu Sonne und Grillen
      WetterOrkanböen und Blitze plagten bis weit in die Nacht Teile der Republik. Vor allem im Norden kam es zu schweren Schäden, zwei Menschen starben. Doch kaum verzieht sich Sturmtief "Paul", bringt Tiefdruckwirbel "Quirin" am Wochenende schon wieder echtes Grillwetter nach Deutschland.Video Schäden nach UnwetternVideo Unwetter in Deutschla […]
    • "Ein ganz anderer Caesar"
      "Planet der Affen 3""Er ist nicht mehr der einfühlsame Führer, als den wir ihn kennenlernten. Nein, er ist voller Hass und Rachegefühle", sagt Schauspieler Andy Serkis über seine Rolle in "Planet der Affen 3". Auch im neuen Teil der erfolgreichen Science-Fiction-Reihe steht Serkis als Schimpanse Caesar vor der Kamera. (Video) […]
    • Untitled
    • Barley möchte Kindergeld für ärmere Familien erhöhen
      24.06.17 08:22 | Bundesfamilienministerin Barley (SPD) plant eine grundlegende Reform des Kindergeldes: "Familien mit niedrigen Einkommen sollen deutlich mehr Kindergeld erhalten", sagte die SPD-Politikerin den Zeitungen der Funke Mediengruppe. Ihr Ziel sei es, den Kinderzuschlag für ärmere Familien von maximal 170 Euro auf bis zu 201 Euro anzuhebe […]
    • "Martha" zum hässlichsten Hund der Welt gekrönt
      24.06.17 07:56 | Ein rund 56 Kilo schwerer Mastino Napoletano namens Martha ist der hässlichste Hund der Welt. Das Tier gewann den entsprechenden Wettbewerb im kalifornischen Petaluma. Von Beginn an galt die Hündin als Zuschauerliebling, obwohl sie ständig zu einer Seite fiel. Sie wurde nach Angaben ihrer Besitzerin Shirley Zindler fast blind aus widrigen Um […]
    • Polen schränkt Zugang zu "Pille danach" ein
      24.06.17 07:20 | Die nationalkonservative Regierung in Polen hat den Zugang zu der "Pille danach" eingeschränkt. Präsident Duda unterzeichnete gestern das Gesetz, nach dem es Pillen zur Geburtenkontrolle nur noch auf Rezept gibt. Seit 2015 war die "Pille danach" in Polen für über 15-Jährige frei erhältlich. Die Regierung in Warschau hat b […]

Palm Springs investors face millions in losses

Posted by 7starsdubai on April 1, 2008

original published: Arabianbusiness.com

Devastated investors in Damac Properties’ axed development on the Palm Jebel Ali are facing millions of dirhams in losses, one of the project’s investors has told ArabianBusiness.com.

The Dubai-based developer recently cancelled the much-delayed Palm Springs project five years after launch, citing “redevelopment of the plots”.

The developer has offered investors compensation of 6% annual interest on the original purchase price and the option of transferring their investment to another project with a 15% discount

Many buyers have snapped up Palm Springs units on the secondary market, meaning off an investor and not directly from the developer, paying up to a 50% premium on the original purchase price.Prior to the cancellation of the project, Palm Springs units were estimated to be worth more than double the original purchase price, according to investors.Investors are now threatening to take Damac to court if it does not reverse its decision and continue with construction.Nearly 60 UK-based investors in the project have formed a group to take on Damac, giving the developer until April 11 to reverse its decision or face legal action.London-based investor Karl Brown told ArabianBusiness.com members of the group were facing average losses on their investment ranging between 300,000-600,000 dirhams ($81,000-$163,000), depending on when they purchased their unit.Brown said he bought his Palm Springs apartment on resale in March 2006 for 1.5 million dirhams and believes the property is now valued at more than 2.2 million dirhams.However, he will only receive the original purchase price, estimated at about 1.1 million dirhams, plus 6% interest for each of the five years since the project’s launch.Brown said Damac had told him it was not the developer’s contractual obligation to refund money that was paid on resales.Brown said UK investors’ losses were compounded by the rising value of the British pound against the dirham.Many investors purchased their units when the exchange rate was 6.4 dirhams to the pound, while the exchange rate is now around 7.3 dirhams to the pound, he said.Brown said the group, the Palm Spring Investors Group, was appealing to Dubai’s Real Estate Regulatory Authority (Rera) and Nakheel, master developer of the Palm Jebel Ali, for assistance with the dispute.Damac was not immediately available for comment, but in a statement issued earlier the developer said it understood the situation was serious and unfortunate, but that it was “completely outside Damac Properties control”.“Due to redevelopment of the plots, the building forming the Palm Springs development cannot be situated on the re-allocated plot and as a result, the Palm Springs project has been cancelled, Niall McLoughlin, senior vice president of corporate communications at Damac Holding, said in the statement.“Damac is committed to its customers and in view of this cancellation, Damac Properties will provide customers an opportunity to release the investment made at Palm Springs and transfer the monies to any other project in the Damac Properties portfolio at a discounted price 15% below current market.”The 25-storey Palm Springs project had originally been planned for completion by late 2007, and buyers were already angry over repeated delays, contractual issues and complaints of poor customer service by Damac.


These are the kind of Developer that Distroy the Market Confidence
Posted by Sam Wahib, Dubai, UAE on 1 April 2008 at 17:47 UAE time

It is amazing to see the effort and amount that Damac spends on ADVERTISING…. while they do NOT spend enough effort on delivering on their promises. Other than 2 buildings in Dubai Marina, I’m not aware any othe project that was delivered out of the 50+ project they sold….In addition, and not a single Damac project has been delayed less than one year. I can not imagine a project that was supposed to be completed in 2007, just gets cancelled NOW (after the completion date). These investor must have paid in 2004, now they will just get 6% interest while they could have got 200% to 300% return if they would have invested these sums in any other project in Dubai When you deal with such developer you should look carefully at the contract, and make sure that you are covered with proper compensation should this happen to you

Update facts
Posted by Ilyas, London on 1 April 2008 at 17:00 UAE timeNo one apart from Damac is really in the wrong here, Lee talks about who should be sued, the only ones who have gone back on anything are Damac. The have been given a Plot by Nakheel, but they will obviouly get a lot more money by selling it afresh then re designing and leaving it with the original investors. I think most people cant grasp the simple con that is being carried out here – Nakheel have redesigned but have delivered on there side of giving plots – Damac want to make more money by selling at new prices so are trying t cancel peoples contracts. One thing about unavoidable delays but completely cancelling investors contracts and offering 6% per annum so then can then sell at 300% of the orginal price that is a con………..

Damac and the fun and games
Posted by Mike H on 1 April 2008 at 16:53 UAE time

Damac have been selling off plan now for 5 years. They must surely have sold 60 plus developments. In that period they have handed over 2 buildings if my memory serves me. It seems to me that its all about taking in the cash that they can and skirting around the deliverables with excuses like this. Before the escrow was introduced what was happening to all that money?Hmmm interesting. I wonder how their developments in Egypt and Jordan are faring. Maybe Palm Springs is financing those.

Palm Springs Mess
Posted by Lee, Dubai, UAE on 1 April 2008 at 15:18 UAE time

Wow! Lots of opinions on this one!!! I feel for the investors, end users, speculators, etc. who will not be receiving their property. And for those who were secondary buyers, well, these buyers could lose big time depending on the premiums they paid. But who should be sued or held accountable? -Should Damac sue Nakheel as one of the Palm Springs investors suggested? I guess they could but then Damac would never receive another plot in any Nakheel development ever again. I would be surprised if any Middle East master developers would ever want to work with Damac. Is Damac going to risk that??? I don’t think so. -And who is to say when Nakheel told Damac? I think we need Nakheel to “clear the air” and come forward with the facts on this plot and their communications/dealings with Damac.-Should previous owner’s be sued for their premiums? Who is to say they were not “tipped off” to problems and told to sell by Damac executives? I bought a property in JLT and a year later one of the representatives told me how late the project would be and that the finishes were going to be rubbish. He recommended I sell if I could which I did. If you think buyers are not gettings “tips” for when to buy or sell in this market you are being naive.Is anyone really surprised this happened? If anything I am surprised it took this long for it to happen. Developers are buying plots and less than a year later they are selling flats off plan, sometimes before master developer’s complete the infrastructure works. This was bound to happen. My wife and I bought a flat in 2005 only to have the building completely redesigned in 2006. We ended up with a flat on a lower floor because that was all that was left for us. I knew then the whole real estate game in Dubai was going to be risky until the government introduced laws to regulate the “monkey business”. But at the end of the day, this is still the wild frontier. There may be Escrow accounts, but where are the penalties for projects handed over 1, 2 or 3 years late? Who knows how this will turn out…..but I am going to sit back and watch the entertainment!

The Damac fiasco
Posted by Plam Springs Investor, UK on 1 April 2008 at 14:05 UAE time

“As stated before in this thread; sit back and watch and enjoy.” KieranWhat about the first rule of good government, of regulating the real estate industry? I’m sure you wouldn’t be sitting back and enjoying things if your local Wimpy builder did the same to you if they felt their profit margin had become too small to make it worthwhile to deliver the property you had purchased several years ago….”The Dubai Real Estate is like a gambling table, you speculate & invest. The chances of making it big is high but if you lose, you do not blame the casino, you blame your self.” The ThinkerYou have a very poor opinion of Dubai – simply a huge gambling place billing itself as being run along Islamic principles. The Sheikh of Dubai paints a very different picture of Dubai…”Don’t you people who speculate on a value of something that is not happening see that you too pump up the bubble a little too much, and are really helping the same developers whom you want to sue now?”You do not seem to understand the simple fact that Damac have renegaded on the contracts given to investors not because of any property bubble, but SIMPLY TO STEAL MONEY THAT RIGHTFULLY BELONGS TO INVESTORS. It is not as if they do not have money to pay compensation at current market rates, or do not have a plot on the Palm Jebel Ali to build the Palm Springs project.

Palm Springs
Posted by theshadow, Dubai, UAE on 1 April 2008 at 13:51 UAE time

It may not be criminal but it’s shady as you can imagine. Not only DAMAC are to blame though, the real estate industry here is equally guilty of distorting reality in their efforts to get people to buy buy buy.I just don’t see how this works though – surely if a developer announces a development and offers it for sale they’re obligated to deliver the project as advertised? If not, that says a lot about the maturity of the real estate industry here and the type of people it has attracted. I’d rather spend my hard-earned money elsewhere on something solid instead of a coloured, computer rendered bubble that might burst at any given moment for no valid reason. It really is ludicrous.

Posted by Ilyas, London on 1 April 2008 at 12:18 UAE time
Some people dont seem to understand what this is about. Nothing to do with volatile markets, because if the value had gone down that is something the Investors understand, nothing to do with workmanship, oversupply blah blah. Damac have used investors money to buy the plot, and then when the price goes through the roof they want to renege on the their committments and sell it for more.People posting on here talking about falling markets and all the rest this simply is nothing to do with the issue, investors paid for something on Palm Jebel Ali and thats what they should get. Not some shoddy excuse about a redesign.AND if the price had collapsed ofcourse Damac would then have said to the investors to buy in a redesigned palm springs, just so happens they have seen an opportunity to make more money buy selling them afresh.

First Rule of Investment
Posted by Kieran, London, UK on 1 April 2008 at 10:57 UAE time

Only fools think that high returns are not the reward for high risks…These investors can persue this claim but they need to risk having the world know they were either gullible enough to think this was a guaranteed return or thought they were party to some nefarious deal whereby their returns were guaranteed unless, of course, DAMAC or their agents gave them assurances that there would be a massive return, thereby, through that assurance, underwriting the risk.However, that may well indeed be the case. UAE sales agents (and there are so many of them these days) with their hyperbolic talk about massive returns and guaranteed investments may be advised to have their lawyers double check their publicity material and make sure their staff are trained well or this lawsuit and future ones could start to cascade down the property-boom feeding chain eating the weak.The authorities have recently, and rather belatedly, been taking steps to regulate these sales and are to be applauded for that but, unfortunately, a lot of things were said and done pre-regulation, that might come back to haunt the market.That coupled with the fact that there is a huge amount of property just now coming to completetion so the builders must be praying that their new owners are too ill educated or naiive to spot the shoddy workmanship and poor finishing prevalent in the region and launch a tidal wave of warranty claims for repairs and bringing properties up to the standard portrayed in the sales publicity. There is no evidence to suggest that most of the developers actually have the kind of solid, cash, foundations and secured credit lines to survive any major turbulence in this market, let alone to go paying out compensation back to burnt investors or aggrieved owners.Caveat Emptor and nowhere is this truer than buying “off plan”.As stated before in this thread; sit back and watch and enjoy.

Who’s to blame?
Posted by The Thinker, Dubai, United Arab Emirates on 1 April 2008 at 10:31 UAE time

Well, who is to be blamed, is it DAMAC who just promotes but never forces a investor to buy or is it the investors pouring in millions without seeing a brick on ground. There a very true old saying, ‘SEEING IS BELIEVING’ & there is a counter line that says that only the risk takers reach the top (but for the risk takers, it can be rewarding or a dive in the dump while the believers would have lost a good opportunity if it was really good later).The Dubai Real Estate is like a gambling table, you speculate & invest. The chances of making it big is high but if you loose, you do not blame the casino, you blame your self. After all, before & after investing, you believed in speculation (until DAMAC’s announcement) and took a very strategic decision.

Palm Springs mess
Posted by George, Dubai, UAE on 1 April 2008 at 09:45 UAE time

Well …If Nakheel redesigned the plots, then Damac should have either informed the investors in time, or sue/ask for compensation/alternative plot(s) of the same properties from Nakheel now. While I can feel sorry for the original investors, the ones asking for the compensation of the secondary sales are obviously not entitled to any refund beyond the original price and any interest that the developer is accepting. Their risk – as long as they thought that the value is going up, they kept quiet, right? – and their loss. They would be happy if the project went through and they had 100% returns on the investment.And, I really fail to see how a flat that is never going to be built can be valued, let alone worth millions??? Don’t you people who speculate on a value of something that is not happening see that you too pump up the bubble a little too much, and are really helping the same developers whom you want to sue now? Compound greed … great!Let’s kick back and watch … the game is on …

Palm Springs
Posted by stuart mayhead, Abu Dhabi, UAE on 1 April 2008 at 08:17 UAE time
So is this going to be when they judge the bubble to have burst? Or is it just a leak….
Damac’s action tantmount to

Posted by Palm Springs Investor, UK on 1 April 2008 at 04:24 UAE time

“Damac said it understood the situation was serious and unfortunate, but that it was “completely outside Damac Properties control”.”What a load of codswallop. Damac has known about the re-design of the Palm Jebel Ali for ages, and I’m sure Nakheel would have kept them informed of progress in the re-design. It’s astounding for Damac to suggest that it has ‘suddenly’ learned that the original plot will not be delivered, and so has had to cancel the project. Damac seem to think that those who invested in the Palm Springs are a bunch of brainless fools who are not able to see through this LIE.If Damac are not able to honour their contracts for failure to deliver by Nakheel, then they should be suing Nakheel, rather than penalising investors with whose money Damac has had all of these years.It is extremely surprising that the Dubai authorities are not stepping in and investigating Damac, if not on investors behalf, then to safeguard the reputation and of Dubai as a safe place to invest.These latest comments by McLoughlin reveals that Damac’s business ethos is driven by greed, and I applaud Brown and the Palm Springs Investors Group for standing up to Damac’s underhand illegal tactics


Sorry, the comment form is closed at this time.

%d bloggers like this: