By Daniel Shane
Dubai real estate firm says it plans to hand over a further 3,000 homes by the end of 2013
Indebted Dubai developer Nakheel said that most of its customers are “happy” to receive properties they have bought, even if delivery has been delayed by several years, according to a senior company executive.
So far this year the real estate firm has delivered more than 770 properties in the first quarter, and will hand over a further 3,000 before the end of the year in delayed projects such as Jumeirah Vilage and Jumeirah Park.
“Construction is like a marathon, there are stages when you slow down and stages when you speed up,” chief commercial officer Aqil Kazim said in a recent interview with radio station Dubai Eye.
“I think the majority [of buyers], I can safely say, are quite happy, although they received [their properties] a few years later than what was intended.
Nakheel, which specialised in building manmade islands such as the Palm Jumeirah, was one of most high-profile casualties of the emirate’s debt 2009 debt crisis which saw property prices plunge by up to 60 percent. It was forced to scale back some of its grander schemes and in 2011 agreed a $16bn restructuring deal.
Kazim told the show that the company had sought to encourage buyers in delayed or on-hold developments to move their investments to other projects.
“The point is motivating and incentivising people to take something that better suits their requirements today,” Kazim said. “Someone who purchased a property in 2008 might not still want it.”
He denied that any part of the developer’s portfolio was on-hold or stalled, claiming that projects had been prioritised as either “short term” or “long term”. “We no longer have on hold projects. They’re projects that we’ve either delivered or delivering,” Kazim said.
He also insisted that Dubai Waterfront, a mixed use development that started in 2007 and was originally intended to be larger than Hong Kong harbour, was not on hold.
“The Waterfront is not an on-hold project. It’s a very large scale community that has several zones among it. We’ve invested significant sums of money in infrastructure – our investment in infrastructure is more than 55 percent complete,” Kazim said, although he could not provide an update on completion.
In the company’s most recent financial quarter, the Dubai government-owned firm reported a profit of AED491m ($133.4m) in the quarter compared to a profit of AED362m in the corresponding period in 2012.
Revenue for the first quarter was AED2.2bn, up 62 percent from a year earlier.
"Happy" is possibly not the most appropriate word under the circumstances. Nakheel's customers had little choice in the matter and either had to grin and bear it or enter prolonged legal battles that would have cost them a fortune with lowered chances of winning as the firm became a GRI- and most of its projects were classified as 'on-hold' not 'cancelled' by RERA. Now not even that in Nakheel-speak 'short- or long-term', do the thinking public a favour please, this is not a ship fools that you are dealing with, you took their money only too glibly in the first place.
Also, the investment transfer logic is utterly flawed. Answer me this - if a customer bought a seaside villa on Palm Jebel Ali or Jumeirah Golf Estates, a purchase which is presumably indicative of their leisure interests, why on earth, if you'll excuse the JGE related pun, would you agree to an Al Furjan property??
Nakheel are a disaster. They may have finally handed over their projects but the problem is the lack of management when they do. I live in Jumeirah heights in jumeirah islands and a year on they still haven't opened the pool despite it being finished! They ignored my complaint emails etc. I'm so fed up with them.
Is this guy for real, or is he actually having a laugh on the investors expense. I am one of many thousands of investors who has never been offered any consolidation or any incentives which I have fought for since 2008!!!!!!! Mr kazim I met you personally and you never offered me anything apart from your company ignoring calls and emails!!!!! Who are you trying to kid!!!!
Let me correct...Buyers are not happy, they are just relieved to see something tangible.
They received it a few years later then it was intended..thank u so much for the clarifying.
Projects i.e. Deira Palm and Jebel Ali Palm, r they still to be delivered?...If yes, Mr.Karim, how many years to wait?
I purchased my 2 Bedroom JVC Townhouse from Nakheel in June 2007 on the basis that construction had already started, and would be completed by Dec 2008. Why would I be happy to receive it 5 years late? I've lost 5 years interest on my investment. Whatever money I paid in rent over 5 years is money lost. Now I have to start my mortgage repayments 5 years later than planned, meaning that I'll be burdened with mortgage repayments past my planned retirement age. And worse of all Kazim fails to mention that the property was abandoned to the elements in a partially built state for over 4 years, and any signs of deterioration have been deliberately covered up thus compromising the quality of my asset. The property sold to me is also a huge downgrade to what was sold to me. Would anyone buying a Bentley be happy to receive a Skoda? I'm accepting my property 5 years late because I have no other choice.
happy? does he really think that? i think he has a future in politics. whats even funnier is "Kazim told the show that the company had sought to encourage buyers in delayed or on-hold developments to move their investments to other projects." Why would someone continue to invest with the company after this whole mess?
With Nakheel, investors should always buy ready possession properties, not under construction one........ Then at least you would be happy to have your asset in front of you. You can still trust Emar but not Nakheel. Actually in this part of world, always buy the ready property even if if is little costly, you will be safe to have your property with you.
Absolutely chaotic situation ,in Dubai real state market. A good example is Khuyool Investments,which is a subsidiary of Nakheel.
No completed Khuyool projects;holding the money of the investors,for 6 years;and the Dubai justice is watching ,without any objection.
Nakheel does not change. Even now that they have softened their tone that is to to with the fact that they see long term projects might soon become short term ones due to the market pick up and they do not want to be seen unaware.
Jumeirah Park is a good example where cancelled phase 1A was launched shortly after successful launch of Emaar project earlier.
could not have said it any better. we are not happy. we just don't have any other choice and no one seems to care.