Not sure which developer you are pointing to because as of now there is no specific developer targeted, the target is rather the recent (possible illegal!) change of Law 13 and the lost incentive to find solutions in cooperation.It seems that many of us are pointing at the same developer, a good start point.
For the rest of us that speaks english, try: Translated version of http://www.alkhaleej.co.ae/portal/c18604cc-404c-422d-9a7b-8df27e789376.aspxa recommendation by Marwan bin galita that developers can't ask investors for payments on projects not started yet. If you read arabic pls check this linkhttp://www.alkhaleej.co.ae/portal/c18604cc-404c-422d-9a7b-8df27e789376.aspx
As of now, I think the following is happening, RERA has the following choice: Private developers will leave and take any forfeited money along with them, they either stop this or accept the fact that a lot of people living here in Dubai will lose a lot of money which could be used for consumption which in turn will take a hit as people lose the money they could have spent buying other things. If they accept developers running off, well those will be the consequences....either my cash stays in Dubai so I can follow through with the plans I had or my cash goes to Pakistan along with Schon Properties (the fake-german company) and I will spend the next two years building up my liquidty again (no spending except the necessary).RERA is trying to put some order in the real estate business in dubai and i think it is healthy. Things will take time to get settled and understood by everyone in town, for sure education in the real estate market would be needed if people want to stay in business and for the good future of this market. Law #13 or not, lawyers or not we all need to get our hand dirty...it is our business to learn, grow and mature with the market. It is a unique opportunity...we are here to keep the business rolling........
propertyconsultant
dubai property crisis
Do you mean that when the payments will be due that they will ask us to pay? and if some developers cancelled the projects, what shell they-we do? I have paid in a project that will start in september 09 and the developer did not get the plot from the master yet, so what you think my situation is?
If they have only sold 70%, then it is doubtful the project will be viable for them to construct and make a profit, because it is going to be hard for them to sell the remaining 30% in the current market. Then there’s the problem of how many out of the 70% will default. If they cancel you should be entitled to your money back in full, but if the Developer has been dipping into your Escrow account then chances are you will get part of your money back. You really need to find as many people as possible who have bought into your development, because you will stand a better chance of getting some answers if you confront the Developer as a group.they sold 70% of it and still a long way to receive the plot, if they cancel what you think my status will be?Thanks
Yeah, we are at least 3 here on the forum who have bought, I'm the only one in Dubai though. Another option in terms of getting money back would be: They forfeit people, then they cancel = no money back. Considering the huge adboards they've had up along SZ opposite MoE, I would be surprised if the escrow account haven't had it's fair share of money whitdrawn for "Sales and marketing"...If they have only sold 70%, then it is doubtful the project will be viable for them to construct and make a profit, because it is going to be hard for them to sell the remaining 30% in the current market. Then there’s the problem of how many out of the 70% will default. If they cancel you should be entitled to your money back in full, but if the Developer has been dipping into your Escrow account then chances are you will get part of your money back. You really need to find as many people as possible who have bought into your development, because you will stand a better chance of getting some answers if you confront the Developer as a group.
