2016 completion date set for troubled Dubai Lagoon

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The company behind the troubled Dubai Lagoon project in Dubai Investment Park expects the entire development to be completed by 2016.

And Schon Properties has revealed work on Zone 1 is almost finished and handover is scheduled for the second half of 2014.

A spokesperson told Construction Week Online: “We have finalised funding for the project and the project will be built on a funding and off-plan sales model.

“After the previous [property] crash, we will not rely solely on off-plan sales going forward to build the development, and have arranged partial funding for completion of the project.”

Dubai Lagoon, which spans seven zones across a 5.7m sq ft site, was among dozens of real estate projects in Dubai impacted by funding issues following the collapse of the Emirate’s property market in 2008.

The resort, which was meant to house the region’s first crystalline lagoon, suffered delays after hundreds of the project's investors defaulted on their payments in the wake of the financial crisis.

Units which were originally marketed for sale under a five-or seven-year payment plan were also no longer feasible for many investors following the downturn, creating a negative feeling among buyers.

The spokesperson said: “There were many factors for the delay of the Dubai Lagoon project, despite our best efforts to avoid them.

“The project was launched on January 2006, but a hold on the building permit was issued on March 2006 because of the Road and Transport Authority’s Purple Line of the Metro being incorporated in master plan.

“After the new affection plan, given by Dubai Municipality and a new building permit was awarded in November 2007, the real estate market crashed in October 2008, decreasing sales by 98% and decreasing collections by 95 percent.”

However, the spokesperson confirmed that funding was in place in order to push through the completion of the masterplan.

“Nearly 97 percent of our investors have continued with us,” they said.

“We have faced 3 percent default from purchasers who had purchased at high prices.

“We have offered investors discounts of up to 40 percent on outstanding invoices through the downturn and co-operated with existing buyers by shifting them to earlier completion zones.”

The company will soon be disclosing details on funding ventures and new tie-ups.

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Posted by: martin

now they have retracted the 15-20% discount offered as compensation and are charging full price. The payment plan they won't talk about and are demanding the balance on completion, and are sending me bullying emails to send them 1000dhs for off plan registration. They inform by email, failing to register now i will lose all rights to my purchase, of which I've payed 247,000dhs. What rights??????? Anybody else would be in jail like many of my friends for small money. How have these directors not been dealt with by UAE law???????

Posted by: Sam

Sam,

this is obsolutely untrue, have just been to Land Department in the month of April and they have informed , that, this project is cancelled and they even mentioned that, anothe builder might come forward for completion of th project, no idea , so far. Howeve, nobody has approached me until this day , hence, its looks false news. Any confirmation, please visit Land department and they will give you the same reply.

Posted by: Zaid aziz

we have purchased two apts. in 2006. we were told that apt. will be handed over to us by 2008. but nothing has come out yet. every time different person calls and says apt will be ready by this year end . but so many years passed by nothing has happened. every time they call us with 10 or 20% discount if u pay the balance money now and they hurrying us for the payment. they will call us several times for payment but no outcome. they sending the progress report but same structure without any development. we have invested more than .half million. . this is our hard earned money. we did win the lottery
I wish if Dubai govt interfered. and give our money back at least. we wud be more than happy .t.. ;please we do not want their promises we want action.
.

Posted by: jean shenava

I have invested my life savings into Dubai lagoon and still nothing to show for it. I do not get progress reports unless I contact them. I have never been offered any discount. I have repeatedly asked for the return of my life savings and been refused. Schon have had my money since 2006 and I've nothing to show for it.

Posted by: lina saldanha

we have purchased two apts. in 2006. we were told that apt. will be handed over to us by 2008. but nothing has come out yet. every time different person calls and says apt will be ready by this year end . but so many years passed by nothing has happened. every time they call us with 10 or 20% discount if u pay the balance money now and they hurrying us for the payment. they will call us several times for payment but no outcome. they sending the progress report but same structure without any development. we have invested more than .half million. . this is our hard earned money. we did win the lottery
I wish if Dubai govt interfered. and give our money back at least. we wud be more than happy .t.. ;please we do not want their promises we want action.
.

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