Singing Pig

WHY WE WOULD NOT BUY

FROM DAMAC AGAIN

On 10 March 2008 Damac Properties informed investors that it had cancelled the Palm Springs, Jebel Ali development originally launched in 2003.  Not long ago in September 2006 Damac were offering 10% interest on monies invested in an attempt to get investors to pull out of the project.

Damac’s justification for cancelling the project is based on the fact that the Master Developer has re-designed the Palm, Jebel Ali and is not delivering the original plot where the Palm Springs was to be built.  What Damac has conveniently forgotten to mention is that the Master Developer will be delivering to Damac a new plot on the Palm, Jebel Ali.  A group of over 60 Palm Springs apartment owners are disputing the legality of using the Force Majeure clause in the contract and are drawing up plans to take Damac to court. 

It is quite clear that, 5 years on from the launch of the project, faced with increased construction costs, Damac have decided to try and buy off investors under the pretext of ‘Force Majeure’.  Damac’s actions are not only immoral, but we believe illegal.  Instead of honouring binding contracts, DAMAC have decided to cheat investors.  Although the value of the apartments bought by investors has more than doubled since the launch, Damac are offering only to return money paid plus a paltry 6%, or alternatively or a 15% discount to buy in another Damac project.

We, the Palm Springs Investors Group will be taking Damac to court in order that Damac either reverse their decision and proceed with constructing Palm Springs on Palm Jebel Ali, or they provide a like-for-like apartment at same cost and terms and conditions on a new Damac development on Palm Jebel Ali, or they provide financial compensation at current market rates for Dubai Waterfront/Palm Jebel Ali

Many investors who bought re-sale properties in Palm Springs (assigned by Damac) stand to loose premiums of up to £150,000.

We attended similar evenings to this launch and were duped into buying from Damac.  We trusted and believed in Damac but strongly warn that you

DO NOT MAKE THE SAME MISTAKE AS US

Visit  http://damaconcovered.wordpress.com/  For More Information

A number of Palm Springs investors have had calls from Damac informing them that the ‘cancelled’ Palm Springs project is to be re-instated and will be located on the new plot provided by Nakheel. One UK investor said “I‘ve had a call from Damac informing me that the Palm Springs project will get the go-ahead now, but due to the re-allocated plot, there may be some changes. Damac told me that they will confirm this in writing within the next 10 days.”

The Palm Springs Investors Group is cautiously optimistic that this signals the end to the dispute between investors and Damac, and pending written confirmation of the decision to go ahead with Palm Springs, the Group is will be looking to suspend any further negative publicity against Damac. Let’s hope there is no ‘devil in the detail’ when investors receive official confirmation from Damac.

Some investors, however voiced concern by warning that it is now vitally important that all investors stay united and continue to monitor Damac’s future construction progress of this development.

It is quite possible that the dispute could have dragged on much longer, and most in the Palm Springs Group acknowledge the support that Nakheel and RERA has given in helping to resolve the matter. Let’s hope that Palm Springs investors receive official confirmation from Damac of the decision to build Palm Springs soon, so that the Group can then formally start backing Damac 100%, and publicly share their confidence in RERA, Damac, Nakheel, and indeed Sheikh Mohammed.

The question is, do you invest in Dubai, or in one of the new, upcoming, neighbouring areas, such as Abu Dabi?

Anyone got any views on this? 

It seems alot of people are still talking of Dubai or UAE. lets look at it in detail . I have been approached by many real estate companies from dubai saying

they can give 50-100% return on my investment within 90 days.  there is something called launch and prelaunch, apparently if you purchase offplan property

in the prelaunch phase , when it officially launches about 30 days later you are already 10% up.  then every week the premium is going up.

We all now about Damac being really rubbish and never to buy from them, but we need to think positive and look for the good developers , i have heard Nakheel and Emmar are very reputable and there projects are gone  within hours .  I have all also found out ajman and Ras-al-Khamaih is worth a look.

I have been researching property investments all over the world , my analysis has bought me to the conclusion, there is still no  better investment than UAE this moment in time.

Many have told me the UAE government is cash rich and there aim is to become the number destination for all. They are trying to overtake Las Vegas and will stop at nothing to get there.  

I have come accross this from my research , my question is does this sound too good to be true or can anybody verify or shed more light on this? 

has anybody invested or moved out there yet ? if so can you share your experience?

Is anybody selling there? or can help me as i will be visiting for a week on Tuesday 20th May (for a closer look before investing)

I will report my findings to all once i come back folks!