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Give me insight on DAMAC Property - Lake View - JLT

Discussion in 'Dubai property' started by Fal Pat, May 27, 2008.

  1. Fal Pat

    Fal Pat New Member

    Hi Guyz,

    I am pretty new in this forum but have been an avid reader of all the threads as a guest member. Me and my hubby are contemplating of buying a 1BR apartment in LAKE VIEW Tower which is by DAMAC and to be delivered in a few months time. I have a proposal @ 1425/- psf. Is this good? My intention is to rent it out once given the possession and earn a rental income of about 100-110K pa, apart from the capital appreciation of the property. PLZZZZ advice if this will be a good buy or not and if DAMAC still has any credibility left or not?
     
  2. sap001

    sap001 New Member

    Hello Fal Pat,

    I am sorry to tell you that I have had very bad experiences with DAMAC for a long time now and would not recommend anyone buying anything from them. I am still waiting for my apartment at Lake View to be completed. It should have been ready by Dec 2006! The latest of MANY letters I have received from DAMAC gives an anticipated completion date of Summer 2008. However this letter is not worth the paper it is written on, because they keep on moving their completion dates forward. There is no guarantee your 1 bedroom apartment will be ready in a few months time. What size is your 1 bed apartment ie how many sq ft?

    Incidentally do you or anyone else know how much annual rental would be for a 2 bedroom apartment at Lake View in JLT?

    Regards
    sap001
     
  3. Chamma

    Chamma New Member

    hi SAP / FATPAL,

    I work for DAMAC, if you have any issues or inquiries please address me on tarek.ibrahim@damacgroup.com and i will be more than happy to assist you.

    I could tell that you are not residing in the UAE am i right or wrong?

    DAMAC launched 2 projects in JLT lake view and lake terrace, the latter was delivered this month itself and their was a grand opening ceremony couple of days back for that regards.

    As per Lake View, i can not tell you the exact delivery date, but according to construction process it should be anytime after 3-4 months.

    You can log on to DAMAC website (Dubai Real Estate, Dubai Freehold Property, Dubai Investment Property : Damac Properties Middle East UAE), choose UAE reagion and then click on construction updates, you will get a list of all our projects in the pipeline where you can view real pictures on the construction process and to which level it reached.

    I guess AED 100K-110K for a 1 B/D is within the average rental yield in Dubai in such a location.

    As for capital appreciation, we don't have anything available in JLT as to give you a hint on the developers current price, but please refer to some of the articles that i posted regarding prices (prelaunch permanent thread).

    I had predicted a 20%-30% minimum increase in developers prices in the upcoming month, i ahd stated some facts to back up my predictions and as of 3 days back i heard that Nakheel doubled the land price in DTJA....

    thanks and best regards.


    Tarek Ibrahim

    00971 50 2404787
    tarek.ibrahim@damacgroup.com
     
  4. sap001

    sap001 New Member

    Hello Tarek,

    You are not telling me anything I did not already know and it is interesting to note you have not refuted any of my previous comments. Why? Because they are true!

    If you really want to help me and others who are in the same situation as me, then contact your CEO (Peter Riddoch) as I have many times before. It is about time DAMAC takes responsibility for it's dreadful image and record of continous delays with investors
    properties. I have spoken with numerous people who share my concerns with your company, so I can assure you I am not alone in my perception of your company

    sap001
     
  5. DubaiDMC

    DubaiDMC New Member



    can you please quote one project in Dubai that has been finished on time?
     
  6. sap001

    sap001 New Member

    Hello DubaiDMC,

    You are missing the point. The issue is NOT which other projects have been completed on time, but WHY DAMAC have not completed their Lake View project on time. It is already 18 MONTHS late with no prospect of a definite completion date so far. How much longer do DAMAC expect investors to wait? DAMAC were very quick to take investors monies, but when it comes to delivering their projects on time, they blame everyone else apart from themselves.

    I tell you what the answer is? DAMAC should be fined a percentage of their annual turnover or profits and DAMAC should pay their customers compensation for EVERY SINGLE DAY the project is delayed. I am sure that will focus their minds on completing their projects on time.

    sap001
     
  7. Chamma

    Chamma New Member

    Dear Sap,

    I had tried to answer Fat Pat's inquiries through my honest opinion in regards to rental yield, capital appreciation, and delivery date for her lake view investment.

    Understanding, that you had purchased in the same project, i hoped to be of help to you as well, as for current delivery date, i had advised to check the building constructions updates through our website, where you can view in real pics that the building is almost ready so you can have a peace of mind that your investment (at last and after a long wait of continued delayed) is a solid one.

    I had lived my whole life in UAE, and can tell you, that the unfortunate delays for most projects by most developers had poured in the benefit of long term investors like yourself in terms of capital appreciation for their property.

    As they say, good things happen to those who wait.

    I had read most of your posting, and can see that you are furious with DAMAC, and i admit you have the full right to be, so inbehalf of my employer i do apologise for such delays.

    As a consolation, i can confirm that if you have bought another property from another developer you definitly would have suffered from similar frustrating delays.

    I had explained reasons of delays in previous posts, you can refer to them as to get a more general idea of whats happening in Dubai's property market and hope my posts to benificial to all readers who are residing outside UAE.

    DAMAC is mostly judged being one of the biggest developers and leaders in the UAE Market, but they do learn from their mistakes (whether the hard way or not) and are delivering. Most of their projects in the pipeline will be delivered between between 2008 - 2010 including new launches and i hope then that a better image will be established.

    Again i congratulate you on your investment and hope that it turns out to be more lucrative than expected.

    good luck and best regards.
     
  8. Chamma

    Chamma New Member

    By the way SAP, their were many rumours and news before circulating the market regarding proposed changes by nakheel for their JLT Development.

    At a certain period of time i even heard that there will not be even a lake there !!!!

    if this was true it could be a reason for the delays in handing over plots / granting the building permission for other private developers. (till a final decision was made about the masterplan).

    I am not 100% certain of my sources but i did hear that from various different sources.
     
  9. Fal Pat

    Fal Pat New Member

    Hi guyz,

    I can understand SAP's frustration especially since he's been invested in the project from the beginning if I am not wrong. Yes it's been a long wait since the first sale of Lake VIew was done but now having reached this stage, I do not forsee much delay. SAP to answer your question on rental, a 2 bed in JLT will get a rental of 120K - 140 K p.a. and this is the lower end of the range. My apprehension is about the quality of construction since I have not seen any completed DAMAC property. Everything looks so good on pictures but the final outcome should not be far from it or else one might not fetch the returns one is looking for.
    Amongst other news I have is 2 days back DAMAC released 2 floors, 7th and 8th (if I am not wrong) in Lake Terrace in JLT starting from AED 1800 - 2100 /sq ft. Ofcourse Lake terrace is due for completion earlier than Lake view but the same can be expected? I would take a conservative estimate of 1600-1750 for Lake View at the completion time.
     
  10. sammy1003

    sammy1003 New Member

    1 bed in Lake View


    I believe there is a 1 bed unit selling at the rate of around 1300 AED/sqft. Let me know if you're interested and I can check on its availability for you.
     
  11. Fal Pat

    Fal Pat New Member

    Sammy, yes please, send me the details.
     
  12. sammy1003

    sammy1003 New Member

    1bed Lakeview

    I am checking on availability for you. Please give me you email address. Thanks.
     
  13. Fal Pat

    Fal Pat New Member

    my email is birfals at gmail dot com
     
  14. Roshan

    Roshan New Member

    Rents should be around AED 120 to 140 K for a 2 BDR in JLT.
     
  15. Roshan

    Roshan New Member

    We have posted an easy to use mortgage calculator. among the first 3 posts on the forum. Feed in all the details requested which is simple, feed in the amount you wish to take as loan, the interest rate, the number of years, the anticipated rent and it will give you an idea as to how much you can expect as positive or how much you are on negative cash flow.

    Always use a mortgage calculator which will give you an idea as to where you stand on the investment. I always use one when I need to analyse a deal.

    You need to check a few of the Damac handed over properties to see what you are getting.

    You can expect a rent of 90K for a 1 bedroom.

    1200 to 1400 AED is the market rate for residential in JLT.

    Regards

    Roshan
     
  16. hk1

    hk1 New Member

    damac property

    Hi

    Just an opinion!

    I would just like to say that while Damac have spent a fortune in advertising and marketing their name they are yet to show their worth within the property industry. They have marketed heavily overseas and are cashing in on those investors.

    My partner works for Dubai properties and has said that Damac has a really bad reputation within the property industry for delays!

    Not a company I would go with.
    Especially if it was my first investment!

    Good luck
     
  17. Fal Pat

    Fal Pat New Member

    Thanks HK1 for your opinion on this. More and more people have warned me against DAMAC. I surely do not want to get into something I will regret later.
     
  18. Rammah

    Rammah Member

    Delays in Dubai?

    :)

    Hi everyone,

    If you don't know yet through other threads that I work for DAMAC, then be advised that I do, but that's completely irrelevant to this thread, and here are some fair comments to give, and which would challenge the brain of many:

    1- Do you agree that fizzy drink is bad for you?
    If your answer is yes, then

    2- Do you drink fizzy drinks?
    If your answer is yes, then

    3- Which make do you drink?
    If it's Coke or Pepsi, then remember very well what most people tell you when they warn you of fizzy drinks.

    The answer is: "Coke and Pepsi is bad for you". Only a minority warn you saying: "fizzy drink are bad for you". Therefore, the majority of people are unfair to "coke and pepsi".

    OK, back to properties in Dubai.

    When people talk about the delays in Dubai, they are all being UNFAIR to DAMAC, period.

    I'll leave it at that for now, and I'll passionately proceed with answers to the remaining points when people assess the above and go back to their conscience.

    Note: Lake view will be submitted in 2008 and this has been included in a very recent official press release.

    As for sap, would you sell your unit at 1425 per sqft? or 1300 per sqft? If the answer is NO, this means that you KNOW your property is worth much more than this. Therefore, after letting out all your anger about inconvenience, it would've been fair to tell Fal that the price she's getting is incredibly good.

    My quick word to Fal: If you own a DAMAC unit, you'll never regret it. If anything, you'll be proud and privileged! Why don't you go to Lake Terrace which was recently submitted and look at what you'll be expecting.

    Best regards,
    Rammah
     
  19. sheray

    sheray New Member

    In a way i agree with him for following.

    And yes if property got delayed its bad for the investor. As he loses his rental income. Sad world is not perfect.

    But i guess still better than having property with bad finish. Or finding your property near swerage plant. like some sectors in IC.

    In this case yes its bad for the seller as his property got delayed. But hey
    how is it bad for the 2nd buyer. For him primary objective should be
    how is the finish of final product and whats the price.


    I have flat in lake view but client is not willing to sell below 1300 per sq. ! Floor : 9th.

    If you are getting 1425 price i guess you are getting is very good price.






     
  20. sap001

    sap001 New Member

    DAMAC Lake View Delays

    Hello Rammah,

    I am someone who has paid a deposit on my Lake View apartment almost FOUR YEARS ago with the full intention of renting it out from Jan 2007. 18 months later I have still not got a property to rent out and no one from DAMAC (YOU, Peter Riddoch (CEO) or anyone else from your company) can tell me when my property will be ready for certain. In the meantime I have already lost out on 18 months rental income and almost certainly much more. Who will give me compensation for this loss of rental income?

    As someone who works for DAMAC, your response is entirely predictable and undoubtedly you have a blinkered view of your own company and will defend it to the end come what may. The reality is that people like me and lots of other investors are absolutely fed up with endless delays by DAMAC, loss of rental income, apalling customer service by DAMAC and are never going to buy from your company again. I know many friends and family members who have asked me about investing in Dubai. My honest advice to them is keep away from DAMAC.

    Regards
    sap001
















     
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