Investors file case with RERA over Dubai project delays

DELAYS PROTEST: An artist's impression of the Vue de Lac project in Dubai.

A group of around 30 investors has filed an official complaint at the Real Estate Regulatory Agency (Rera) over ongoing delays and specification changes at the Vue de Lac and Vista del Lago developments in Dubai.

Investors on the Al Attar project at Jumeirah Lake Towers accused the developer of unreasonable delays and changes being made to apartments without the consent of owners, Construction Week Online reported.

“We have been promised the project since then end of 2007. It was then pushed to 2008, then the end of 2008, and now he’s saying 2011 – which will never happen, because up to date they’ve only finished the piling,” investor Makram Mohamed told the website.

Many asserted that apartment specifications have changed so drastically that they no longer wish to purchase property in the project and want a full refund.

Investors are unhappy at what was described in a letter from Al Attar as “some small changes”, where two-bedroom apartments have been changed to one-bedroom ones.

Al Attar had revised the prices of the apartments in line with the reduction in apartment size, but investors said that they had bought two-bedroom apartments specifically and a smaller alternative was not acceptable.

“Because of the change of designation and all of this delay, we don’t want this property any more. The majority of people investing were buying to live in this property. Ninety per cent of our group wanted to live in this. Now they’ve changed the designation, we don’t need it. I bought a two-bedroom; you can’t give me a one-bed plus study,” said investor Shailendra Sainani.

“The majority of us need our money refunded and the costs absorbed. [Al Attar] needs to resell the project from the beginning.”

In addition to changes in designation, many investors are also concerned that delays to the project will result in a huge interest bill arising from finance agreements that can only be concluded following apartment handover.

Some investors took out finance agreements in 2006 under the impression that the project would be handed over in 2008. They are now facing the prospect of paying five years’ worth of interest on finance agreements, should the project be delivered according to a new completion date of 2011.

Some investors also query Al Attar’s ability to deliver the project on time.

“Can we still believe Al Attar can deliver in 2011, if they couldn’t even start construction in the last three years?” said one investor.

The group has filed a case with Rera because they say that Al Attar Properties is refusing to communicate with them except through a lawyer.

No-one from Al Attar was able to comment on the case or development.

The case has now been filed with Rera, who said a decision on the steps it would take would be forthcoming in the next few days.

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READERS' COMMENTS

unfair deal
Posted by hossein akbar shirafkan, sharjah, united arab emirate on Tuesday 8 December 2009 at 18:57 UAE time


i have paid more than 20 percent of an apartment in legend dubai land by tanmiyat company and they suppose to hand over the apartment by31st december 2008,but unfortunately till now they have not started construction yet.whenever contact them they say starting soon and never give you a corret reply.i just want to know is this a fair deal with an investor?may god lead us to truth and reality,enshaallah.

Why Do We Have To Pay As Per The Agreements When We All Know That Construction Prices Have Fallen 30% to 40% ???
Posted by Jay, Dubai, UAE on Saturday 21 November 2009 at 16:39 UAE time

We borrowed money to buy properties in Dubai and the properties we paid and booked in 2007 are on hold till this date. Now, the construction cost in Duabi has fallen by 30% to 40% but developers have no other plans than keeping the same purchase price reflected in the agreements though they have not laid a brick at site. Developers are going to pocket this 30% to 40% saving???Is this fair??? Is there any law to address this concern of investors???

We take all the losses, pay interests to banks/financing houses for money borrowed, living with stress that when to get our money back or take the possesion of the property purchased years ago, thinking whether we loose or not our jobs tomorrow...

developers at default ,banks and developers win ,investors lose
Posted by MARIA CARBALLO on Monday 9 November 2009 at 09:21 UAE time

Unless developers start acting responsible for their defaults situation for real estate in the UAE will suffer.

I bought an unit at business bay delayed for year and 8 months , Amlak its making money over it by charging huge interest to the customer .Dubai properties do not care or compensate. Amlak finance will benefit , how could anyone invest in this country in the future ?

VU DE LUC
Posted by Nadeem Sarwar, London, UK on Saturday 31 October 2009 at 17:01 UAE time


Allattar have let down all the investers in all their projects. This is the only main developer in the Dubai who has not yet completed any of their project. I invested in Vancouver Tower International city which has not started yet. I have been offered to transfer to Vue De Lac, which might go ahead. I would advise all the International city investors to accept the transfer offer on launching price as it is the best option on the table instead of getting refund after 4 years.

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