Delays
Everything that Deflanger has said so far is accurate and correct. I too have bought in Dubai lagoon. Yes i do expect delays of projects being delayed even for a couple of years. However the problem with this developer is that they are not being fair or even honest in their communications.
I think Roshan wrote that in another case the developer changed the payment plan for delays but this developer is not willing to do that. There is real concern about the project being completed. What is really upsetting is that the developer is launching new projects without even completing its first project.
I think that for at least this year and the first part of next year UAE inflation will be high because of the increase in the money supply (according to some economists this leads to inflation). This means higher costs and this increases the chances of off plan project not being profitable and thus stopped. This possiblity maybe a reason why prices of completed projects are rising.
As an investor of Dubai Lagoon i am fearful of the possibility that this project will not be completed. Construction started at least a year ago and there has been minimal progress. There are many other disgruntled investors.
The other danger of course is that in the current economic climate other delayed projects will be abadoned especially with smaller developers. I do believe that what happens with dubai lagoon project may set a precedent for the future.
Sorry to sound so negative. I have invested in RAK and other projects in dubai. Some have been delayed by over 18 months but at least there has been communication about the delays (eg no electricity) and construction progress.
Part of the reason for this post is to inform others of the problems involved specifically with DUBAI LAGOON.
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