Buyers ‘happy’ despite late delivery, says Nakheel

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Indebted Dubai developer Nakheel said that most of its customers are “happy” to receive properties they have bought, even if delivery has been delayed by several years, according to a senior company executive.

So far this year the real estate firm has delivered more than 770 properties in the first quarter, and will hand over a further 3,000 before the end of the year in delayed projects such as Jumeirah Vilage and Jumeirah Park.

“Construction is like a marathon, there are stages when you slow down and stages when you speed up,” chief commercial officer Aqil Kazim said in a recent interview with radio station Dubai Eye.

“I think the majority [of buyers], I can safely say, are quite happy, although they received [their properties] a few years later than what was intended.

Nakheel, which specialised in building manmade islands such as the Palm Jumeirah, was one of most high-profile casualties of the emirate’s debt 2009 debt crisis which saw property prices plunge by up to 60 percent. It was forced to scale back some of its grander schemes and in 2011 agreed a $16bn restructuring deal.

Kazim told the show that the company had sought to encourage buyers in delayed or on-hold developments to move their investments to other projects.

“The point is motivating and incentivising people to take something that better suits their requirements today,” Kazim said. “Someone who purchased a property in 2008 might not still want it.”

He denied that any part of the developer’s portfolio was on-hold or stalled, claiming that projects had been prioritised as either “short term” or “long term”. “We no longer have on hold projects. They’re projects that we’ve either delivered or delivering,” Kazim said.

He also insisted that Dubai Waterfront, a mixed use development that started in 2007 and was originally intended to be larger than Hong Kong harbour, was not on hold.

“The Waterfront is not an on-hold project. It’s a very large scale community that has several zones among it. We’ve invested significant sums of money in infrastructure – our investment in infrastructure is more than 55 percent complete,” Kazim said, although he could not provide an update on completion.

In the company’s most recent financial quarter, the Dubai government-owned firm reported a profit of AED491m ($133.4m) in the quarter compared to a profit of AED362m in the corresponding period in 2012.

Revenue for the first quarter was AED2.2bn, up 62 percent from a year earlier.

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Posted by: Happy Customer

We purchased an "off plan" villa from Nakheel. When it was put 'on hold' Nakheel worked with us and eventually offered us a completed apartment at fair market value. We made the swap and, because we were moving away from Dubai, the handover was expedited and we received our apartment EARLY. The same happened to friends of ours. If you bought from Nakheel (or Emmar) be thankful you bought from a local developer. They have a huge vested interest in seeing Dubai succeed and will work with clients. Unlike so many developers and project managers from Europe and Australia that just skipped town with clients $ and did not even look back.

Posted by: Amiro

Nakheel does not change. Even now that they have softened their tone that is to to with the fact that they see long term projects might soon become short term ones due to the market pick up and they do not want to be seen unaware.
Jumeirah Park is a good example where cancelled phase 1A was launched shortly after successful launch of Emaar project earlier.

Posted by: Amin

Absolutely chaotic situation ,in Dubai real state market. A good example is Khuyool Investments,which is a subsidiary of Nakheel.

No completed Khuyool projects;holding the money of the investors,for 6 years;and the Dubai justice is watching ,without any objection.

Posted by: Investor

With Nakheel, investors should always buy ready possession properties, not under construction one........ Then at least you would be happy to have your asset in front of you. You can still trust Emar but not Nakheel. Actually in this part of world, always buy the ready property even if if is little costly, you will be safe to have your property with you.

Posted by: jonjon

happy? does he really think that? i think he has a future in politics. whats even funnier is "Kazim told the show that the company had sought to encourage buyers in delayed or on-hold developments to move their investments to other projects." Why would someone continue to invest with the company after this whole mess?

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