Al Furjan

[Arno Salzl]

I am seriously willing to buy a type B middle unit quortaj townhouse terrace, phase 1, centrally and south oriented, for a long term investment. Prices at 0 premium seems attractive.
However, I have been told by a real estate friend of mine that prices will continue to drop (he says wait another 3 months at least) or completely cancelled / reviewed by Nakheel. Any info about it?

Since the dirham could also drop against the euro, it looks like I just have to wait.

[zombie]

Arno, I would suggest wait & look elsewhere in the world, do not, I repeat do not purchase anything offplan, by any developer in Dubai. There is more pain to come.

[Khalil]

Originally Posted by zombie

Arno, I would suggest wait & look elsewhere in the world, do not, I repeat do not purchase anything offplan, by any developer in Dubai. There is more pain to come.

Just curious as to what you are basing this grim outlook on.. Don't get me wrong I'm not optimistic either but I am keeping an open mind.. Just seems people here are reaching conclusions (positive & negative) based on hear'say.. If you have any hard facts or solid logic please do share with us..

[Arno Salzl]

Originally Posted by zombie

Arno, I would suggest wait & look elsewhere in the world, do not, I repeat do not purchase anything offplan, by any developer in Dubai. There is more pain to come.

Frankly, I don't understand why the villa part of Al Furjan would not be build: location is ok,
original price -which is now the resale price - seems not too inflated,
Nakheel did not spent much for the land and marketing,
most investors have only paid 20%, means no cash flow problems for this project,
flippers should be able to resale before next payment with no or light loss.

Renting a ready townhouse to people working in JAFZA for 180,000 AED would give a yield of 7,5 % brutto, starting 2013. Is it daydreaming? your opinion please!

[Mujteba]

Originally Posted by Arno Salzl

Frankly, I don't understand why the villa part of Al Furjan would not be build: location is ok,
original price -which is now the resale price - seems not too inflated,
Nakheel did not spent much for the land and marketing,
most investors have only paid 20%, means no cash flow problems for this project,
flippers should be able to resale before next payment with no or light loss.

Renting a ready townhouse to people working in JAFZA for 180,000 AED would give a yield of 7,5 % brutto, starting 2013. Is it daydreaming? your opinion please!

I think you are not far off, the Furjan were always competitively priced hence the demand they held in the re-sale market. Even with a 10% premium, they were much less psqfoot than other villas in the surrounding area.

The only issue i see, like all off plan property, is knowing when they will be actually built or if constructed at all. This is scheduled to be completed in 2010-2011 but with the current crisis who knows.

So really the Furjan are a good set of townhouses that will be in demand but only once ready or once there is solid indication they will be built and when will the construction finish. The first indicator will be phase 1, if this is done by early 2010, then the investment will definately pay off for the phase 2 investors.

Fingers crossed and lets hope for the best.

[Arno Salzl]

Originally Posted by Mujteba

I think you are not far off, the Furjan were always competitively priced hence the demand they held in the re-sale market. Even with a 10% premium, they were much less psqfoot than other villas in the surrounding area.

The only issue i see, like all off plan property, is knowing when they will be actually built or if constructed at all. This is scheduled to be completed in 2010-2011 but with the current crisis who knows.

So really the Furjan are a good set of townhouses that will be in demand but only once ready or once there is solid indication they will be built and when will the construction finish. The first indicator will be phase 1, if this is done by early 2010, then the investment will definately pay off for the phase 2 investors.

Fingers crossed and lets hope for the best.

Agree. but IMHO, no completion before begin 2011 (we are, so to speak, early 2009). However, bankrupt of numerous subdeveloppers means contractors will have free capacities to work for Emaar, Nakheel and Dubai Properties.

[zombie]

Originally Posted by Khalil

Just curious as to what you are basing this grim outlook on.. Don't get me wrong I'm not optimistic either but I am keeping an open mind.. Just seems people here are reaching conclusions (positive & negative) based on hear'say.. If you have any hard facts or solid logic please do share with us..

My logic is this money deposited as downpayments & installments has an opportunity cost associated with it, now the likely hood of the project getting delayed is very high, if anticipated competion in end of 2011, the more realistic time for competion "assuming" the developer has worked out cashflow prudently is more like 2012/13, so from here on forth for a period of 4 years you are blocking your funds, we can only hope that at the end of 4 years one can recover the opportunity cost by way of increase in value of the property. But there are still a large number of defaulters still to come in the picture because their installments have either not been due or they have managed one more installment & are desperately hoping to seel the offplan property in the next few months. But there are hardly any resales taking place in the market, so how they manage is unknown. Finally the impact of all this on developers finances is also an unknown.

I believe there are other established property markets in the world that one can invest, markets which are better regulated & with fewer unknowns. There are great bargains to be had there.

But that is again purely my way of thinking, for some they might find calculations & risk factors worthwile

[Khalil]

Originally Posted by Arno Salzl

Agree. but IMHO, no completion before begin 2011 (we are, so to speak, early 2009). However, bankrupt of numerous subdeveloppers means contractors will have free capacities to work for Emaar, Nakheel and Dubai Properties.

I have been banging on Nakheels door for the past 2 months trying to get them to change the payment schedule or offer some remedy.

But they are insisting that the project is well underway and on schedule. For that reason they are not entertaining any amendments.

At this stage I am starting to believe them since they have changed the payments for Badrah, and few other developments launched more recently.

Plus I have seen a lot of physical work on site and they opened up the new onsite sales center recently (after the crisis) with model Villas.

This development, although very large scaled is not so far fetched as Nakheels other projects like Waterfront for example.

[Ghada]

Originally Posted by Khalil

Guys,

I want to create a group for Al Furjan Villa owners to address issues and provide updates. Please reply if you would like to paricipate.

Thanks

Hello Khalil, I would like to participate in the Al Furjan Villa owners as I have 2 5 bdrms villa phase 2 and I send Nakheel a letter to postpone payment but they refused and penalties are on for me. Is there anyone knows any update for this project. Thanks

[Khalil]

Originally Posted by Ghada

Hello Khalil, I would like to participate in the Al Furjan Villa owners as I have 2 5 bdrms villa phase 2 and I send Nakheel a letter to postpone payment but they refused and penalties are on for me. Is there anyone knows any update for this project. Thanks

Hello Ghada, Thank you for your reply.

Yes, Nakheel are still refusing to change the payment schedule for Al Furjan, because they say the construction is on schedule and there are no delays.

I have the contact of a Manager in the Al Furjan Sales center, we can meet her to disuss, however we need to be a bigger group for them to listen.

I hope more people will come forward to rally up, time is running out.