Lagoon developer welcomes market correction

PROPERTY VIEW: Schon Properties are behind the delayed Dubai Lagoon project.

The developer behind much-delayed Dubai Lagoon project has said the local real estate market "badly needed" a correction in prices.

Tahir Schön, chairman of Schon Properties said he was "unworried" about the downturn in the sector.

He said: “The market was overheated and badly needed a correction. We have been in business for decades and fully understand that all markets are cyclical.

"Those developers and investors who forgot this fact of life, who thought that the property boom would never end and were seduced by quick and easy profits, those who leveraged themselves beyond their means, are suffering now, but this doesn’t mean Dubai isn’t still a fantastic place to invest and do business."

Schon Properties came under fire last year from disgruntled investors after long delays to the $598 million plan.

Residential units which were initially scheduled for completion by December 2007 are now expected to be delivered in 2011.

Schon predicted that the days of flipping homes were over and both developers and investors were having a "reality check".

He added: "I have complete confidence in the prospects for sensible long-term real estate investment in Dubai. I am not worried.”

Schon also announced that construction on the 750 million dirham Schön Business Park project was on schedule for completion in the first quarter of 2010.

He claimed 90 percent of the business park space was sold out.

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READERS' COMMENTS

Dubai Lagoon
Posted by NT on Wednesday 28 January 2009 at 10:31 UAE time


Schon needs to justify what is happening with the funds in the escrow accounts, are they earning interest at the expense of their investors, are these funds tied up in fixed deposits earning good yields. Why should their units with 90 year lease commencing 2005 ( launch date ) have the lease forfeited upto 6 years - so in 2011 a unit will have 84 years lease and potentially reducing the value of the unit. Message for Tahir & Danial Schon, please can you try to re-negotiate the lease to 90 years, so that upon completion the fresh lease applies. RERA may want to back this up.

Who will show the truth?
Posted by Homeowner, UAE on Wednesday 28 January 2009 at 03:08 UAE time


Isn't that what a journalist should do? Dive into a story that has the interest of the readers and get the facts on the table. Apparently the journalists in the UAE do not want, are not able or are not allowed to get the truth on the table. Who will help us out?

Dubai Lagoon project still sticking in the sand
Posted by Anand, Bombay, India on Tuesday 27 January 2009 at 15:06 UAE time

Schon is no more a company one can trust. These people have
been brainwashing all the Dubai Lagoon Investors since 2006
including myself.

Dubai real estate
Posted by Johnson Y. Peter, Chicago, USA on Tuesday 27 January 2009 at 13:41 UAE time


The Buyers should be given more protection and rights compared to the developers, as they collect more funds than what they have put into the projects, they play with buyers funds and control the market according to their advantage at all stages, the UAE Govt. should protect the rights of the investors.

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