Investors petition Dubai over unfinished properties

Buyers report threat of fines if they fail to accept handover of homes in incomplete DPG project

Dubai’s Remraam Community was slated for completion in 2010

Dubai’s Remraam Community was slated for completion in 2010

Investors in Dubai’s Remraam Community have petitioned the emirate’s ruler to intervene in a dispute with the project’s developer, after they were told they risked fines if they failed to accept the handover of properties in the unfinished complex.

The Dubai Properties Group development was scheduled to complete in June 2010, complete with pools, malls, landscaping and retail features. But owners said in a petition to the Ruler’s Court that they were being forced to accept properties without water and electricity connections.

The document, seen by Arabian Business and signed by 37 buyers, asked the court to intervene to insist DPG commit to connecting homes to utilities and developing promised infrastructure.

Buyers have also asked for compensation for losses incurred during the delay of the handover, such as interest on mortgage payments.

“We are being forced to take possession of half-baked apartments and communities in Remraam, which is in the middle of the desert with no amenities and no DEWA. The electricity is provided through generators [and water tanks],” a spokesperson for the group told Arabian Business.

“DPG needs to commit to the completion of facilities and proper infrastructure. Non-completion makes Remraam an unlivable community.”

DPG, the company behind the stalled mega-resort Dubailand, said in emails to buyers that they faced penalties if they failed to accept the handover of the properties in their existing state.

“We understand that you may wish to defer your own occupation of the property until the community has matured and of course this is your right,” said one email. “However, you are contractually obliged to complete the handover process within 30 days of the completion date.”

Another email, dated Jan 4, said: “The final date to complete handover formalities, without penalties, is January 16, 2012 so we recommend that you schedule your appointments without further delay.”

Investors have also been issued with service fees before the handover of their properties, a charge they are contesting. One couple, yet to take possession of their property, received a letter requesting AED1,682 in maintenance charges for the period Jan 5 to March 31, 2012.

“This is total injustice – they can’t just barge over people like this. This is our hard-earned money,” one investor, who asked not to be named, told Arabian Business.

“We just want DPG to give us what they showed us on the brochure – to give us a community that is livable for families so we can get some return on our investment.”

In a statement to Arabian Business, DPG said the basic infrastructure for the project was in place, and denied charging homeowners service fees before their units had been transferred.

The company also highlighted its attempt to help customers who were struggling financially.

“We have offered a series of initiatives to help our customers that include but are not limited to; price reductions, unit upgrades, late payment fee waivers, family consolidations, deferred payment plans etc,” the statement said.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

Posted by: Richard

Where is Sunset Gardens B Jumeirah Village South plot 609 it is a project registered at RERA but it has vanished off there books and I am told money has been taken and there is not much left I paid 70 percent for my apartment and now I am not even told it is canceled its just gone and that is it,
What do I do to get my money back ,or if it is canceled as it has vanished off the radar in any form why was I not even told after waiting 4 years for it to be built, RERA gave me the confidance to buy as it is registered with them I am on the system but not a word I paid 5000 AED to pre register on the registration system ,
try to find it Sunset Gardens B Jumeirah Village South.
It is all over the internet if you search for Sunset Gardens B but it has gone on RERA books,

Posted by: Rashid

I am an investor and I got this link forwarded to me & I only now I read this article. I am appalled at this sorry state of affairs. Till now there has been no action and we are forced ON DAILY BASIS BY DEVELOPER AND BANKS TO TAKE POSSESSION. Why is nobody doing anything?? Media should help us by publishing an updated article on the ground reality which could add more pressure

Posted by: Salsa

Anyone that does not assits these people to is doing something against the law. Where is RERA?

Posted by: Hapless investors

Close to a month now after this article was published and the developer and banks are still forcing us to take handover despite the ground reality remaining worse than ever. Does anyone know where else we can go and request for HELP???

Hapless Remraam Investors

Posted by: QdYKJfHWRBtJfIF

Artciels like this make life so much simpler.

Posted by: Remraam investors

The most disgusting and frustrating part of all this is that we are still been forced on a daily basis to take over the handover despite sending them all the media articles, messages, pleas/petition, showing them snag reports which has more than 50-60 CRITICAL repairs needed.
What kind of justice is this??
There is total lack of action and absolutely no reaction from the mortgage institutions-banks and developer

Remraam suffering group of investors

Posted by: Mark

Remraam Investors, how can i join your group. I am in the same position with major snags outstanding and being forced to accept handover.

Is there any feedback with regard to the petition submitted to the Ruler's Court?

Posted by: Gavin

Dear Ku Rouis,
RERA has also not taken any action as far as we know since this development and handover issues are been notified to RERA all this while. That is why our painful reaction. We are all undergoing tremendous amount of stress as our monthly salary is automatically getting deducted to pay for this apartment which is in the middle of the desert with no landscaping, no proper roads, no grocery stores, no electricity (run by generators) and worse of all is THE APARTMENT ITSELF IS IN NEED OF CRITICAL REPAIRS-MORE THAN 60 REPAIRS NEEDED DURING SNAG INSPECTION..

Posted by: Ku Rouis

What RERA says about this? I suppose when it comes to DPG abuses RERA just keeps quite? Maybe investors in Remraam have not approached RERA officially neither? Do investors deal with DPG or with their company Taziz?

All comments are subject to approval before appearing

Further reading

Features & Analysis
Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Investor interest in real estate investment trusts (REITs) has...

Abu Dhabi real estate: Down, but not out

Abu Dhabi real estate: Down, but not out

While there has been evidence of rents in the richest emirate...

Forgotten fees: the challenge of investing in Dubai property

Forgotten fees: the challenge of investing in Dubai property

Investors attracted to low service charges at some Dubai residential...

Most Discussed