Dubai buyers set for cash back on failed projects

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Countless projects were announced during the Dubai property boom but were postponed or cancelled (Image for illustrative purposes only).

Countless projects were announced during the Dubai property boom but were postponed or cancelled (Image for illustrative purposes only).

Dubai's government will establish a legal committee to liquidate cancelled property projects and settle related disputes, including paying out investors who have struggled to get their money back from developers.

The system will apply to projects that have been cancelled by the Real Estate Regulatory Agency (RERA).

Countless projects were announced during the Dubai property boom but were postponed or cancelled – either partway through construction or before work had begun – when the market dramatically dropped in 2008-09.

Many sites have sat idle for several years, although not all affected projects have been officially cancelled and some developers claim frozen projects, such as Palm Jebel Ali and The World, will still go ahead.

Last month, a twisted residential tower in Dubai Marina was finally completed after remaining part-finished for several years.

A statement on the state media service WAM says specialists and consultants will be appointed to the committee, while developers will be required to provide their audited financial status and evidence of all cash transfers and deposits related to the failed projects.

“The committee has the right to take actions and issue decisions to guarantee the rights of those who have purchased property that fall into this category,” the statement said.

The decree, issued by the ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum, immediately puts on hold any cases or appeals related to cancelled properties presently before other courts, which will no longer be able to hear such cases.

Decisions by the committee will be final, with no avenue to appeal.

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Posted by: Sundaram

I bought in Palisades too, and the money is stuck. Although it is claimed the money is in Escrow Account, there is no sign of getting our money back when the project was stalled (never started!). It takes years to save the hard earned money.

Posted by: Chris

I bought through avanti holding 2 flats in pallissades, paid 35 percent on both and then the avanti owner disappeared from the scene in September 2008. Heard stories about his fate, some say he is jailed others that he is away in Africa. I have receipts and a booking agreement. I will be happy to coordinate with other owners and file a claim through a lawyer or direct with land department. But is this palisades a declared cancelled project ? Pl share with me any details you have obtained in your search. Can contact me on my mobile 050 6961485 or by email leanmar893@hotmail.com

Posted by: Haque J

we bought x3 different appartments thru AVANTI and we were told that Money has been tranfered to Escrow, after checking with Escrow we found out that Escrow account has zero amount, my question is who took money out of Escrow account?? Secondly Owner of Pearl property is Who? If some one can find that out will be surprised and more shocked, because that is where our Money has gone, and Its next to impossible to get it back. Why..? As the Owner is one of their Own Royal Family Member. I could be wrong, but I m giving you Clue/key to find out Owner of Pearl Property. I have lost so much that i cannot recover back again in this time or time to come.

Posted by: ali

Hi

I bought a flat there too.
have you got any update regarding the refund?

your reply would be appreciated

Posted by: Sundaram

Armin

Thanks. I bought it thro' Avanti as well. What is the chance of getting the refund? I am happy to pursue it together. I have been doing so with RERA.

Posted by: Armin Sohrabian

Hi Sundaram,

I bought in palisades too but through Avanti holding real estate that is disappeared. I still communicating with Pearl Properties (the master developer) and they are talking about project being cancelled at court and they will return the money based on court decision. is your contract (agreement) is made with Avanti or it is directly with Pearl Properties ??? as if it is with Pearl, you will have a better chance to get your hard earned money back.

Armin

Posted by: Warda

Yes John, I have said exactly the same thing during my communication with investors like myself of the Dubai Lagoon Project (5 years with no sign of handover) - about Dubai NOT upholding the rule of law STRONGLY enough hence allowing such fraud to occur!!

Posted by: John

Why would a country allow foreign developers to come into their country with an agenda to purposely commit crimes like this that tarnish the reputation of Dubai? What is the main nationality of these developers? It appears that RERA set the ground work for criminals to come in, slander the reputation of Dubai and pilliage the funds from all these hard-working investors, who it appears from these comments, earnestly wanted to live in Dubai as civilized citizens. Dubai should want expats that respect their country, not come in to pilliage and slaughter the system with their foreign corrupt business tactics? I know Dubai is better than this and I trust the authorites will expedite the money back to all these investors and charge the developers with criminal charges. Let's start marching them to jail, followed by deportation. They can practice these types of fraudulent business tactics in their own countries.

Posted by: HHH

We bought a one bedroom apartment in WIND TOWER in Jumeirah Lake Towers (JLT) back in 2008, and were told it would be completed by 2009!! We are now in 2013, and the tower still stands half-finished. The project of two towers is left abandoned with the knowledge of Dubai Multi-Commodities Centre, whom we have talked with before, but they couldn't care less. For the last four years, we've been paying rent when we could've been living in our home which we bought. In summary, Dubai is not a safe place to invest in property.

Posted by: Zahid

I bought an apartment in one of the DAMAC's project in 2007 and till now no news on its actual completion.

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