Emaar to finish Dubai apt towers at least 2 years late

Thursday, 18 March 2010 2:06 PM

EMAAR PLANS: The original schedule called for apartments to be delivered this month.(Getty Images)

Emaar Properties, the Middle East and Africa’s biggest developer by assets, expects to complete two Dubai apartment towers at least two years late, according to a letter sent to buyers.

The 45-story buildings, designed by New York-based Frank Williams and Partners Architects, are now set to be finished in February 2012, according to letters sent to buyers and seen by Bloomberg. Emaar didn’t respond to telephone calls and e-mailed questions about the apartment projects, which were due to be completed this month.

The developer inaugurated the 828-meter (2,717-foot) Burj Khalifa in January.

Mehdi Nosratlu, an apartment buyer notified of the delay on Feb. 28, said he has already paid Emaar 65 percent of the 3.1 million dirhams ($844,000) he owes on a property purchased in April 2008. The 55-year-old German citizen heads a group of almost 400 investors who bought homes in the two towers and are trying to reach an agreement with Emaar. So far, buyers have paid 30 percent to 65 percent of the total purchase price, he said.

“We’re stuck,” Nosratlu said in an interview. “We are paying on mortgages taken at the height of the market and paying interest on properties that I doubt will be completed by the new deadline. No work has been done on the site in almost a year.”

Only part of the foundation work of the apartment project, called 29 Boulevard, has been completed.

Emaar put all new real-estate projects on hold in February 2009 to stem a decline in prices by limiting the supply of new homes. Selling prices in Dubai, the second biggest of the United Arab Emirates, have fallen more than 50 percent from their peak in the second quarter of 2008.

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Posted by: MIRZA RAZIUDDIN BAIG Sunday, 21 March 2010 12:09 PM[UAE] - UAE

It was a costly project sold by Emaar .They should come to the rescue of investors by revaluing the units by discounting atleast by 30 % and rescheduling payments as per the progress of construction.Already Emaar has collected 1/3 of the price and the construction upto plingth level and stopped therefrom for the last one year or more. Emaar are the pioneers in Freehold property and a leading company involving prestigious people.We do not expect such a reputed company to spoil their name so easily and avoid listening disrespectful comments from angry and hurt customers.Already the project is late by more than one year for handover since the original promise and now they are promising another two year delayed period .It means there will be a delay of 3 years with only a mere discount on original booking price offered by Emaar.Needless to mention some investors have booked at higher mark up price from the forefeited units thru Emaar's secondary offer. If Emaar really wants prompt and progressive payments they have to revise 29 BLVD project pricing afresh considering the downward trend of property market.No investor will pay the original price which is 2/3 higher than present market value and also the project is 3 years late to be delivered.

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Posted by: Paul King Saturday, 20 March 2010 7:10 PM[UAE] - UAE

More evidence of the Dubai property circus! It's very clear & simple, if your IQ gets above room temperature, don't purchase, rent! The world is full of vehicles for removing fools from their money.... Dubai property is a juggernaut!

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Posted by: Fyfe Friday, 19 March 2010 3:10 PM[UAE] - United Kingdom

I agree with Singh, I also will be taking delivery in Park Island soon...nearly 2 years behind schedule. The communications of delays by Emaar has been disgusting, and all requests for compensation have been rebuffed. I will never buy another property from Emaar again, and I strongly recommend anyone thinking of buying an Emaar developement to reconsider. Customer Service is non existant.

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Posted by: y m b Thursday, 18 March 2010 6:01 PM[UAE] - uae

hi own an appartment in blvd 29 few weeks back we rec'd a letter saying the project is delayed by 2 years, they have our money with them which we have paid in lieu of the installments for the appartment and when contacted they said the money the money cannot be refunded i feel the govt. should intervene and hold the projects that have not started rather than fooling the investors that the handover is delayed by 2 years.Big realestate companies like emaar should return the money of the investors rather than sitting on it for so many years to gain investor confidence back.

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Posted by: kishan hargundas Thursday, 18 March 2010 5:35 PM[UAE] - uae

reputated builder as emaar they r not supposed to hold money of investors for three years and no reply from there side and they should return money with investors with interest or they should give another property as market value.

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