2008 the year when the supply will surpass the demand

[Roshan]

Originally Posted by Fran

I am not an expert in the real estate supply and demand, but we went to the last 2-3 launches of Damac and can tell you that half of the halls were empty and the other half full with Damac staff. Also yesterday I have read that the company cancelled one project at the Dubai Waterfront. It seams the demand is not higher than the supply........or at least I think so......

It will be very interesting to see how RERA will solve this issue. Could be a land mark case which would decide how cases like this will be tackled.

Regards

Roshan

[Fran]

Investors in Damac Properties' Palm Springs project on the Palm Jebel Ali are threatening legal action after the developer cancelled the venture five years after launch.
The project was axed due to changes made to the Palm Jebel Ali masterplan, which meant Damac would suffer a significant loss if it continued with the venture.
Investors are unhappy with the compensation offered by Damac, which said it would only offer 6% per annum interest on the sum invested, the newspaper said.
Damac has said it will either refund customers' investment or allow them to transfer their investment to any other project in its portfolio at a discounted price of 15% below current market value.
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.........

[Rammah]

Originally Posted by Fran

I am not an expert in the real estate supply and demand, but we went to the last 2-3 launches of Damac and can tell you that half of the halls were empty and the other half full with Damac staff. Also yesterday I have read that the company cancelled one project at the Dubai Waterfront. It seams the demand is not higher than the supply........or at least I think so......

I work for DAMAC, and allow me to inform you that we have launched Fairway Heights [JV, Dubai] only last week. That's on top of Tuscan2, Amber Residence, Madison Residence in Dubai and so many more projects in Abu Dhabi and Egypt.

I guess that's enough to let you at least "rethink so"!

Rammah

[Rammah]

Originally Posted by Fran

Investors in Damac Properties' Palm Springs project on the Palm Jebel Ali are threatening legal action after the developer cancelled the venture five years after launch.
The project was axed due to changes made to the Palm Jebel Ali masterplan, which meant Damac would suffer a significant loss if it continued with the venture.
Investors are unhappy with the compensation offered by Damac, which said it would only offer 6% per annum interest on the sum invested, the newspaper said.
Damac has said it will either refund customers' investment or allow them to transfer their investment to any other project in its portfolio at a discounted price of 15% below current market value.
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.........

The plot where Palm Springs was supposed to be has been changed by the master developer when they re-designed the palm.
Therefore, those investors will have to assess the situation a lot better before thinking of challenging DAMAC. Their lawyers would know better anyway.

Rammah

[fws]

Not good publicity for Damac even so.

[karlosb]

Originally Posted by Rammah

The plot where Palm Springs was supposed to be has been changed by the master developer when they re-designed the palm.
Therefore, those investors will have to assess the situation a lot better before thinking of challenging DAMAC. Their lawyers would know better anyway.

Rammah

Latest press release - from arabianbusiness

Nakheel has questioned Damac's reason for cancelling its Palm Springs project.


So why would the Palm Spring Investors group be worried about taking legal action against Damac ?

[Rammah]

Originally Posted by karlosb

Latest press release - from arabianbusiness

Nakheel has questioned Damac's reason for cancelling its Palm Springs project.


So why would the Palm Spring Investors group be worried about taking legal action against Damac ?

They have to be worried cuz they will lose time, effort and legal fees!
Of course it's not a good news for anyone, investors [appreciation] and DAMAC [publicity]. However, it's not DAMAC's fault, and that's what I was trying to say.

Rammah

[karlosb]

Originally Posted by Rammah

They have to be worried cuz they will lose time, effort and legal fees!
Of course it's not a good news for anyone, investors [appreciation] and DAMAC [publicity]. However, it's not DAMAC's fault, and that's what I was trying to say.

Rammah

So do you think the Investors should take this lying down when some resale investors will lose anything upto £150,000

Damac still own the plot.

[Roshan]

Originally Posted by karlosb

So do you think the Investors should take this lying down when some resale investors will lose anything upto £150,000

Damac still own the plot.

It will have a telling effect on their reputation.

As a good developer they should have stuck to the project, made changes to adapt to the new allocation of the plot. They should have kept the investors happy. That would have been the best advertising for Damac, other than any other promotion.

Regards

Roshan