Executive towers update

[steldxb]

Hi There

I own two studios in Executive Tower B - good buy i thought as i have a 90% mortgage on them and they will be completed in 2009 so a) i could rent them or b) sell them as when liquidity returns people will now look for nearly completed projects or ready to move in apartments.

So, my contracted handover period is 1st quarter of 2009 but i've heard that this is not the case as Dubai Properties the developer have yet to complete on the DEWA connections/building that supplies the Executive Towers?

This is probably better news fo rme as i then do not have to pay my islamic finance interest payment as a lump sum on handover so i just wanted to know if anybody knows anything further and when we can expect the Executive Towers to be completed.

Also be good to know what you think on the prices. I've heard/read lots on falling prices etc but realistically for a studio in this prime location, by the metro (good news when that kicks in next year) and as they are near or almost complete what do you think i coudl sell them for?

Thanks!

 

[TommyC]

Hi There

I own two studios in Executive Tower B - good buy i thought as i have a 90% mortgage on them and they will be completed in 2009 so a) i could rent them or b) sell them as when liquidity returns people will now look for nearly completed projects or ready to move in apartments.

So, my contracted handover period is 1st quarter of 2009 but i've heard that this is not the case as Dubai Properties the developer have yet to complete on the DEWA connections/building that supplies the Executive Towers?

This is probably better news fo rme as i then do not have to pay my islamic finance interest payment as a lump sum on handover so i just wanted to know if anybody knows anything further and when we can expect the Executive Towers to be completed.

Also be good to know what you think on the prices. I've heard/read lots on falling prices etc but realistically for a studio in this prime location, by the metro (good news when that kicks in next year) and as they are near or almost complete what do you think i coudl sell them for?

Thanks!

Sell? Almost completed?

To be realistic, plan for now on selling for original price. And regarding "almost completed" be advised that one way the government are regulating apartments flowing into the market is by delaying DEWA connections. This is already a fact in several finished buildings in Jumeirah Lake Towers. Until you have the keys in your hand or a severe penalty clause for the developer in the contract in case of delays, be prepared that "almost complete" could mean it is still more than a year away until handover.

Happened to a colleague of mine in another project, construction started and more than 50% complete. Then the delays started, two months, another two months, another two months, and BAM suddenly it is now another year away because of this and that reason. So total estimated delay is apx. one and a half year and counting... Wish you better luck though!

Back on your question, have no idea what rent you can expect (price probably with a very small premium right now, but in 10 years.....who knows, maybe the building have already fallen apart by then ). The worst is probably yet to come, in another 6 months we will know if the rents stayed high or, more likely, went down significantly due to a lot of people losing their jobs (my bet).