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Damac threatened with lawsuit after project axed
by This email address is being protected from spam bots, you need Javascript enabled to view it on Sunday, 30 March 2008Posted on Sunday, 13 April 2008
i agree
Posted by Hussain at 11:49 UAE time
i see the same thing here in jeddah,
big swanky Damac ADS and nothing..... big empty lots....
sad really
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Posted on Wednesday, 9 April 2008
Stop complaining
Posted by Mart at 15:56 UAE time
Good luck with any legal action! You bought property in a market with no established system of law land (unlike UK etc). You are subject to a legal system that is arbitrary. That is the risk you took.
I also run a business in the UAE. I accept the risks. The government can arbitrarily change the law. They can decide to block voip phone systems. You have no appeal, no recourse. We accept that when we move to such a place. Off plan investing is a risk. You take the risk that you'll be able to sell at a profit, and that the company you are investing with won't do you over.
Good luck with any legal action! But I suspect you are throwing good money after bad.
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Posted on Thursday, 3 April 2008
First impression is false
Posted by Richard Ross at 00:00 UAE time
When the "fresh" investor arrives to Dubai - he/she sees Damac everywhere....at the Airport, Highways, huge ad booths in shopping malls....waaw - big company with nice ADS..giving "nice" impressions to the person who believes to colorful pictures, ads and impressed by give-away jaguars, bmw, etc etc.... In other words, DAMAC is enjoying money of foreigners, who does not know the reality - and that was my first impression....
Good thing that I did not buy anything from DAMAC and I am thankful to my old Emirati friend, who opened my eyes on that company :)
Get some info on developer's reputation before investing....Good luck
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Posted on Wednesday, 2 April 2008
Damac Palm Springs
Posted by Vic Groves at 12:09 UAE time
Is there any way that I can join in with any group of investors seeking legal action against Damac in respect of the Palm Springs cancellation? There are numerous references to the possibility of investors joining together to seek redress and I would like to join one such group as I feel it will have more credibility than pursuing a claim on an individual basis.
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Posted on Monday, 31 March 2008
Damac Victims are not alone
Posted by Falcon at 03:00 UAE time
The victims of Damac are not alone. They bring to daylight what happens day by day in Dubai.
We bought 2005 Falcon Tower JLT directly at Nakheel.
We paid 45% until June 2006. In August 2006 we got a letter from DMCCA. Falcon will not be built - a decision of Nakheel.
But we were told the Falcon Tower would be transfered to AL Fajer Properties, nothing would change for the customers.
Today, 2008, we are getting letters from the lawyer of Al Fajer Properties trying to cancel every right to our purchased apartment.
We have got our own lawyer - but they have refused to correspondence with him.
The case is with RERA - but until today without any response.
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damac Plam Springs
Posted by Richard at 01:35 UAE time
DAMAC- Palm Springs this was a dream Five years ago and now in 2008 a COMPLETE nightmare.
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Damac's treatment of its clients
Posted by Sanj at 20:31 UAE time
I am outraged at the way Damac have treated us. We have accepted delay after delay and been loyal to this project for the past 5 years. Many of the purchasers can no longer afford to get into the Dubai market let alone a comparable apartment on Palm Jebel Ali. It has been rumoured that Damac has canceled this project because they do not stand to make the financial gain because of the increase in construction costs in Dubai. A penalty that we the buyers are having to bear.
We hope that Dubai will make an example of Damac and insist that they fulfill their contractual obligations.
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Palm Springs
Posted by jo at 18:05 UAE time
We the investors of Palm Springs are disappointed by what appears to be a unilateral cancellation of the Palm Spring project at Palm Jebel Ali.
Following the purchase of our apartments in this project in 2004, Damac thanked each of us “for placing your trust in our company and making this investment in Palm Springs,” It is clear that this trust has morally and contractually been misplaced. Damac have abandoned their duty of care towards their loyal investors. Having relied upon your representations, and remained loyal to the project, despite numerous set backs and delays, we have been rewarded by their abandonment of the project.
By canceling the entire project, Damac has set a worrying precedent. This will inevitably have a major impact on the commercial credibility and trustworthiness of Damac in delivering on both current and future developments in Dubai.
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Ethics?
Posted by Ilyas at 15:19 UAE time
Remember that Damac HAVE been give a plot by Nakheel, and they are using this as an excuse to get out of honouring the investors who bought early. Damac will get 3 times the amount from new investors so thats why they want to return the money to the investors. If the investors had put their money into virtually any reputable developer in Dubai they would have seen a nice return. All the time Damac would have presentations and tell people how much money their investors were making, they should now tell people that they cancelled a project so they could sell it for more to new investors!
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Palm Springs Cancellation
Posted by Terry at 15:17 UAE time
I am shocked and disappointed by Damac cancelling Palm Springs Project. I believe that Damac acted illegally and breached the contract with their investors.
I feel angry and hurt together with my family because our dream of having our apartment in Palm Springs has been shattered by Damac after nearly five years of waiting, where the prices in Dubai since have more than tripled and we cannot afford to buy any comparable apartment at the current market price.
Damac must honour their commitment to their investors without giving us unacceptable excuses. Damac has several plots in Palm Jebel Ali you can build Palm Springs or redesign it.
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Damac Palm Springs
Posted by Robert Miller at 14:57 UAE time
Having bought in to Palm Springs in 2003, the amount Damac are offering will mean that I cannot afford to purchase another property. Put simply, Damac could not build at a profit so will not build at all. Come on Mr Riddoch, do the lawfully and morally correct thing and return to us our investment and the growth we had earned by supporting you in your infancy. Last November I should have received a luxury apartment, instead I am going to receive less than I gave you and a similar apartment will now cost more than three times the price.
Just how many apartments have Damac actually built, review the amount they have sold and the amount they have actually built. They are a problem waiting to happen.
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Palm Springs
Posted by Palm Spring Investors Group at 12:37 UAE time
Just a small matter of all those who bought on resale, they have lost anything up to £150,000...
Damac will not look at this issue and not refund the premiums. Why should Damac cancel the project when they still own the plot. It has only being relocated and they can redesign the Palm Springs...
They will wait a year or two and resell units built at the site for overinflated prices and make a large profit instead of a large loss.
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Damac cancels Palm building
Posted by Bob at 09:44 UAE time
They have been using the investors money over the past 5 years to build and build and now we are offered 6% ROI?? DAMAC "Live the Luxury" Yeah right!
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Damac
Posted by Heba at 08:41 UAE time
I am not sure why people are angry, Damac is giving them two options, (1) get back your money with interest or (2) get another property for a discounted price.
Damac has not taken the money and fled away. It is a company trying to do the right thing for its customers. I can imagine how customers are angry becuase they thought they can make a profit out of the property, but this in itself shows that the customers motivation for anger is also greed..
In fact, the more people get angry and follow the herd, they stand to lose more ..
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Showing True Colours!
Posted by Louie Tedesco at 08:28 UAE time
Thank you Damac for showing the world your real character - which is not the friendly, caring, persona that you try to typify on your glossy brochures and advertising. Your actions, after five years of sitting on customer down payments, by refusing to honour a huge contract with an international consortium of investors has added one more argument to not buying property or investing in Dubai.
In this modern era, people do talk, they send emails around the world and the internet is too open for such a breach of contract to remain hidden from the public. The right thing to do is to step forward, fulfil contractual obligations made five years back, suck up the loss now and move on to reap future profits that lay ahead. Until then, my money stays in my (foreign offshore) bank.
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