Oqyana looks to sell 'The World' property

LAND SALE: Oqyana hopes to sell land it owns on The World project by the end of 2008, Abdul-Rahim has said. (Supplied)

Kuwaiti real estate firm Oqyana, an affiliate of Islamic company Investment Dar, hopes to reach deals to sell property in a major Dubai project by year-end after receiving offers from "many" investors.

Oqyana, in which Investment Dar owns 20 percent, has been developing land it owns in Dubai's The World, a collection of man-made islands the emirate is developing off its cost in the shape of a map of the world.

"Oqyana has been approached by many investors who are regional and international developers with offers... We hope to reach sale deals during the last quarter of 2008," Oqyana Managing Director Nabil Abdul-Rahim told newswire Reuters in written replies to questions.

Abdul-Rahim declined to give a value for the deals, saying only: "Oqyana anticipates its profits to go over 150 percent," adding that it would sell the property directly to end-users to boost margins.

Investment Dar declined to comment on the value of the deals but said last year Oqyana could earn as much as $2.5 billion from the sale of Dubai property. (Reuters)

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READERS' COMMENTS

Off plan sales
Posted by scott on Thursday 16 October 2008 at 16:37 UAE time


When buying off plan, what is the normal practice when a reservation agreement is signed, then after 3 years you are asked to pay an increase of 346% from the original agreed price to get your contract, after the developers have held your money for all this time.
This has just happened to me and approx 9 other people on a project of 2,500 units which will probably be the pinacle of development's in Dubai.
We were the only investors (as far as I know) and 10 units out of 2500 is a very small amount on which is to be a $10 billion development.
It would appear that there is not much you can do about it apart from to look eslewhere to invest in a market where there is better protection for the customers.
Perhaps it is this sort of activity that is going on that is undermining the market and disuading people from parting with their money.
If this sort of practice is allowed to carry on, there will be no confidence in the market as no-one will know who can be trusted.
This undermines the efforts of all the honest and fair developers out there who are comitted to their customers and are not just trying to profiteer from the rising market.
These underhand tactics must be stopped if confidence is to remain in the market place.

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