Saturday, April 29, 2006

Appartment Sales

Does anyone have an idea about how the sales are going on Ocean Heights? I was told about three months ago that it was only just over 50% sold by one of Damac's sales people.

12 Comments:

Blogger Fezzy said...

Hi

Thanks for making up the site,it is a great idea.I have bought in Ocean heights and I am very dissapointed nothing seems to be happening,I saw the piling machine on the site but I do not think it is doing anything,I am sure it is for show purposes only.You get the same answers from Damac all the time that work is progressing then you look at the photos on some of the sites and nothing is happening I cannot find out what is wrong Damac will not release the real reason behind all the delays.

6:03 AM  
Blogger Spoogle said...

Thanks for the comment Fezzy sounds like we are all having similar experiences then, I assume you got the same letter recently saying the completion date is now end of 2009. I am sure the simple truth is they have not sold as well as expected mainly due to the price I would think. However I am looking for long term here and still think Ocean Heights will be one of the best towers once finished. However I am a little nervous having read the threads on SSC's about Marina Terrace and the internal finishes, I certainly hope Damac get there act together for OH.

1:53 PM  
Blogger Fezy said...

Hi

I got the letter last month stating the last quarter of 2009 'TERRIBLE THE WAY THEY TREAT YOU'.

I am the same as yourself for the long term. I only hope they get there act together and get started or there will be no more customers, people will take fright and maybe see it as sign they might go bust, nearly 4 years to completion is not going to be a big selling point either.I still think something is wrong big time and they refuse to tell you anything about it.Maybe The reason being they have to sell the full building before they can start,bad way to do business I think.
Have you any idea if they did go bust would we get our money back !

I have warned the damac customer service rep the bad press they are getting at present and the time delays and bad quality are high on the press's ajenda at present, he told me that the CEO was aware of the bad press and he blames the editor of the Kalijee times of slander like they did before,so who knows what is going on between them.

Fezzy

3:27 PM  
Blogger Fezy said...

This comment has been removed by a blog administrator.

3:28 PM  
Anonymous Anonymous said...

First: Thanks for creating this site. Probably it will serve as a psychiatric clinic for us who bought at early time. I am a regular Damac customer and I bought on other three projects.
I started with The Waves. They are one and a hlaf year late and until now I do not know what I am getting so it is too early to tell. Judging from Marina Terrance I think I will get the same treatment.
Ocean Heights: I bought last May and so far 40% is paid. Imagine you would pay in advance and the building is not started yet.
OH: Location and design super. Prices little high, installmnets very painful. Once the building is delivered it is great investment
but is worth the pain? Not for me,for DAMAC YES.
I stopped Damac purchases and moved on to other developers.
My advice: do not buy in Dubai unless payment is tied with construction scheduels.

6:18 PM  
Blogger Spoogle said...

Good point about payment schedules being tied to construction schedules. I approached Damac in December about delaying the schedule due to delays in the start of the project and also based on the fact www.gowealthy.com are advertising OH with a completion date due in June 2008 and a payment schedule 4 months later than mine.

Needless to say the answer I got back was that I have signed the contract and need to keep to the payment schedule.

I signed my contract in August 2005 and to date I have paid 30%. I am prepared to delay my payments to them on the basis that I cant see them objecting as they have not as yet sold out, and if and when they do I would be prepared to pay up as the building will by then be underway and unlikley to be delayed anymore or even cancelled.

Interestingly enough they are already going to be in breach of part 13.1 in the contract which states that provided the buyer has met his obligations and the building fails to be delivered by 31st Dec 2008 then the buyer will receive compensation. I do not want any compensation but am willing to wait until the end of 2009 provided they are flexible about the payments.

On the subject Fezzy mentioned of getting our money back should Damac go bust, In my experience it would be very difficult and at worse impossible however much regulation is in place due to the fact our money is now in Dubai. However this is all just speculation and I have no evidence myself that Damac are anything but a growing and reasonably succesful developer who have obvioulsy had some teething troubles with their first Marina project.

In fact compared with the size of the project at Dubai Marina some problems are almost inevitable and are certainly not limited to Damac.

1:59 PM  
Blogger SALEH said...

Hi Spoogle, Regarding the contract of Damac. Their trick is to collect payments in advance. The more they delay the building the more they collect of the total contract. It is true they will pay the penalty interest which is the lowest(Libor rate) which is now 5%+ while our cost is min 12%. If you are late on your payment according to sched. they will hit you with 1% per month, read again the contract. Another catch, Article I thing 13 stipulates the Force Majoure, which could be any thing from Municipality license to delay of contractor work, they can trigger this execuse any time.
This what happened in M.Terr,and the Waves.
I am not trying to scare people but this is from my own experience, and other buyers with Damac. It is true the investments almost doubled.

10:43 PM  
Blogger nidoenator said...

I bought my apartment in February 2005 and to date paid 30%. My contract states anticipated completion date to be June 2008 and like Fezzy received a letter in March 2006 stating that the completion date has now been extended to final quarter 2009.

Extremely angry with this delay and loosing confidence in Damac after reading the bad press.

On another note,my payment schedule is based on completion of piling and floors rather than dates.

Correct me if I'm wrong, but with this type of schedule, there is a flexibility in the payments from the customer's point of perspective.


Also, please see attached link to Rustar Real Estate:
http://www.rustarrealestate.com/payments/Ocean%20Heights%20Payments.htm

1:45 PM  
Anonymous Anonymous said...

For buyers who bought at Ocean Heights with payment schedule not tied with construction schedule, and want it to be changed:
I recommend you to contact Client Relations Manager , Mr. Alan at:
alan@damacgroup.com

6:23 PM  
Anonymous Anonymous said...

Damac Investors Lashout over construction delays.

http://www.khaleejtimes.com/DisplayArticleNew.asp?
section=theuae&xfile=data/theuae/2006/june/theuae_june66.xml

Damac are not helping themselves with headlines like these. They should stop the sales incentives which does not hold water and win back customer confidence.

12:31 PM  
Blogger Spoogle said...

I totally agree, no serious investor; whether buying for themselves or to rent out, is swayed by cheap sales tactics.

However I dont think the Khaleej Times and Damac have the best relationship!! So you have to read into this article what you can.

I would be interested in Damac releasing a press release to explain the delays and re-assure investors, they need to show that they are comitted to improving their image and delivering the quality that we expect for Ocean Heights and future projects.

10:27 PM  
Blogger nidoenator said...

Damac changed design, cut size of apartments, says former buyer.

http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/theuae/2006/June/theuae_June268.xml§ion=theuae

Damac are digging a deeper hole for themselves. Now they are realy below the belt.

9:58 AM  

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