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Lagoon developer welcomes market correction
The developer behind much-delayed Dubai Lagoon project has said the local real estate market "badly needed" a correction in prices.
Tahir Schön, chairman of Schon Properties said he was "unworried" about the downturn in the sector.
He said: “The market was overheated and badly needed a correction. We have been in business for decades and fully understand that all markets are cyclical.
"Those developers and investors who forgot this fact of life, who thought that the property boom would never end and were seduced by quick and easy profits, those who leveraged themselves beyond their means, are suffering now, but this doesn’t mean Dubai isn’t still a fantastic place to invest and do business."
Schon Properties came under fire last year from disgruntled investors after long delays to the $598 million plan.
Residential units which were initially scheduled for completion by December 2007 are now expected to be delivered in 2011.
Schon predicted that the days of flipping homes were over and both developers and investors were having a "reality check".
He added: "I have complete confidence in the prospects for sensible long-term real estate investment in Dubai. I am not worried.”
Schon also announced that construction on the 750 million dirham Schön Business Park project was on schedule for completion in the first quarter of 2010.
He claimed 90 percent of the business park space was sold out.
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Comments 1-10 of 10
Posted by NT on 28 January 2009 at 10:31 UAE time
Schon needs to justify what is happening with the funds in the escrow accounts, are they earning interest at the expense of their investors, are these funds tied up in fixed deposits earning good yields. Why should their units with 90 year lease commencing 2005 ( launch date ) have the lease forfeited upto 6 years - so in 2011 a unit will have 84 years lease and potentially reducing the value of the unit. Message for Tahir & Danial Schon, please can you try to re-negotiate the lease to 90 years, so that upon completion the fresh lease applies. RERA may want to back this up.
Posted by Homeowner, UAE on 28 January 2009 at 03:08 UAE time
Isn't that what a journalist should do? Dive into a story that has the interest of the readers and get the facts on the table. Apparently the journalists in the UAE do not want, are not able or are not allowed to get the truth on the table. Who will help us out?
Posted by Anand, Bombay, India on 27 January 2009 at 15:06 UAE time
Schon is no more a company one can trust. These people have
been brainwashing all the Dubai Lagoon Investors since 2006
including myself.
Posted by Johnson Y. Peter, Chicago, USA on 27 January 2009 at 13:41 UAE time
The Buyers should be given more protection and rights compared to the developers, as they collect more funds than what they have put into the projects, they play with buyers funds and control the market according to their advantage at all stages, the UAE Govt. should protect the rights of the investors.
Posted by Frustrated Lagoon Inversor on 27 January 2009 at 12:51 UAE time
Dear Arabian Biz team, Please do not make more PR for these guys. they just collected our money with these kind of good PR actives.
Posted by Mo, UAE on 27 January 2009 at 11:59 UAE time
I don't understand how Schon receive any credence in the media. They have not completed anything and possibly never will.
Posted by gamby on 27 January 2009 at 09:48 UAE time
Who's gonna believe Schon? They can't even deliver project on time. I think this is his last effort to revive confidence. But it's too late. Stop being a soothsayer, it will do you more harm than good.
Posted by mkp, Toronto, Canada on 27 January 2009 at 03:30 UAE time
Whatever Mr.Schon says is his opinion.
But what bothers me is the following:
If buyers default in instalments they have to pay a penalty.
If developers default in possession date, no penalty for the developers.
If buyers want to get out of the contract they have to pay the penalty as per the exit clause.
If developers delay in giving the refund they do not give interest to the buyers for delayed payment ie no penalty.
The laws in UAE are one sided. In favour of the developer. Its high time buyers are protected as they have put in their hard earned money ie life savings.
For Allah's sake please take action against those developers who delay refund to the buyer. Bring in a law that the developer has to pay interest on the refund amount and has to pay up within 60 days.
Posted by DL fever on 26 January 2009 at 23:47 UAE time
mr, schon you are Badly needed to finish what you started 4 years ago with our money ( Just do it ) stop giving comments , action speak louder than words
Posted by DL fever on 26 January 2009 at 23:40 UAE time
Arabian Business Why do you waste you time asking these guys to comment . this devloper??? has not delivered a single room since they started , it is all a joke.