No extensions or refunds from emaar

[NewLook]

I just received an email from Emaar Customer Care rejecting my request for an extension of payment, and also rejecting my request for a cancellation of contract. They said they are under NO obligation to comply with Law 13 as a result of a customer's request for cancellation of contract (which is required to get a 70% refund, and that there is NO extension of payment offered for my project ('M' Burj Dubai). The only option offered was to downgrade to a cheaper unit and pay according to a different payment plan. Are these guys above the law or what?

 

[daflanger]

Seems like Emaar, Nakheel and many other developers are not going to follow LAW no. 13. I am telling you now, RERA cannot help any investors. We have to work things out ourselves or suffer

 

[MMSM]

according to the law, you will only get repayment by the developer if you've paid over 30%. the repayment will be made to the original buyer once the developer has sold the unit.

its the law set by RERA, not emaar or nakheel

 

[NewLook]

Regardless of the particulars, I think its unethical for Emaar to announce one thing in the newspapers and do another thing when you write their customer care center. The newspapers are saying that Emaar is being flexible with respect to extending payment schedules. The truth is that Emaaar is NOT providing extension options to everyone, and they are not intending to refund 70% of your money if you default. Whether you pay 5% or 30% is besides the point. This is not right. I thought Emaar was a reputable company, and that's why I invested with them in the first place. I am very disappointed.

 

[kamadenu]

Regardless of the particulars, I think its unethical for Emaar to announce one thing in the newspapers and do another thing when you write their customer care center. The newspapers are saying that Emaar is being flexible with respect to extending payment schedules. The truth is that Emaaar is NOT providing extension options to everyone, and they are not intending to refund 70% of your money if you default. Whether you pay 5% or 30% is besides the point. This is not right. I thought Emaar was a reputable company, and that's why I invested with them in the first place. I am very disappointed.

Greed and fear do not spare any one. First it was greed of everyone involved including the developers who kept announcing price increases to be able to boost the market prices which were not true and now the fear.........good lessons for everyone

 

[poorwoman]

I too owe a unit in "M Burj' and unable to pay the next installment and they asked me to go for a downgrade. I opted for "rent to own " scheme which they have newly introduced but they rejected that. If they are asking everyone to downgrade then what is the future of this project?

 

[TommyC]

Seems like Emaar, Nakheel and many other developers are not going to follow LAW no. 13. I am telling you now, RERA cannot help any investors. We have to work things out ourselves or suffer

investorslaw13 @ hotmail.com <<----- sign up! were closing in on one hundred already and almost 1 BILLION invested. It's a effort to bring the voice of the investors to the public, and do what we can to improve our situation. And spread the word to everyone you guys know that have any money whatsoever invested!

Attach some brief details about yourself, invested money and properties, and optionally some more contact details besides your email-adress. Thanks!

 

[Roshan]

Seems like Emaar, Nakheel and many other developers are not going to follow LAW no. 13. I am telling you now, RERA cannot help any investors. We have to work things out ourselves or suffer

RERA cannot do anything. Let them clear the internal mess before they actually start helping.

Regards

Roshan

 

[georgihh]

you are out of your ****ing mind. the developer is only charging a 1% penalty for downgrade. be grateful you're getting the option of a downgrade, others arent even offering this.

they could easily take all your payments and show you the door, but they're making an effort. and in any case, investors/flippers like yourself should be punished for ruining the market.

This time they can’t take your payment as they will spoil the name Emaar.
The old days are gone.
They have to pay the money back and start again otherwise they need to close.
Too many people have burnt or are about to burn and in this part of the world the rumor is spreading very quickly.
If the people around the world find out that Emaar are working on 500% profit - what do you think is going to happen?
UAE is not Singapore or Hong Kong the foundations are very thin and can collapse anytime.
Too much to quick, no regulation – the property business is dead.

Emaar market share has lost 80% of the value this year I wonder why!

 

[MMSM]

This time they can’t take your payment as they will spoil the name Emaar.
The old days are gone.
They have to pay the money back and start again otherwise they need to close.
Too many people have burnt or are about to burn and in this part of the world the rumor is spreading very quickly.
If the people around the world find out that Emaar are working on 500% profit - what do you think is going to happen?
UAE is not Singapore or Hong Kong the foundations are very thin and can collapse anytime.
Too much to quick, no regulation – the property business is dead.

Emaar market share has lost 80% of the value this year I wonder why!

Emaar does not operate on a 500% profit margin, and even if it did, 'people around the world' would find out as it is a publicly listed company that has to by law disclose all of its accounts

Why has Emaar's share gone down? It has nothing to do with company fundamentals. In fact, none of the listed stocks are trading based on fundamentals. For e.g. DP World, one of the safest stocks in the world, is trading at a 77% discount to its IPO price.

As for collapsing, the UAE is probably better capitalized than Singpore and Hong Kong. Oil revenues which they have been earning for the last year at record prices ensure this constant stream of money.

In case you didnt know, Abu Dhabi's sovereign wealth funds (ADIA) are close to a trillion dollars, several hundred billion dollars above any other SWF in the world!

Have faith in the market. YES, prices were high and developers made a killing, but so did investors, banks, contractors, suppliers, and everyone else. For the first time in nearly 7 years, the market is correcting itself and investors are loosing money.

Investment in real estate in international markets is done not on 5% downpayments with a chance to flip, it is done on total purchase price. People unable to afford the properties were buying here by just putting the 5% down, and when they couldnt sell due to several factors, they got burnt.

I say whats happening is good. I've personally lost a **** load of money in the market. Put 5 - 10% down on several properties not being afford the next payments. Now that there's no demand for these, I cant sell and stand to lose a significant sum of money. It is not the developer's mistake, it is my own. Greed was driving me, and i've learnt my lesson. Back to investing in low return mutual funds and government bonds for me.

 

[dubister]

I think it is way to keep as much money of the defaulters (aka investors) they can to minimize thier risk. They want all the speculators to be out of the market... so they arent going to do anything. In the end the big companies win...

 

[TommyC]

I think it is way to keep as much money of the defaulters (aka investors) they can to minimize thier risk. They want all the speculators to be out of the market... so they arent going to do anything. In the end the big companies win...

So who exactly is the specualtor? The developer that unchallenged can launch projects, default people and keep the money while they are abusing escrow accounts, and then resell properties, and once they cancel, they still haven't built anything but the escrow accounts are still empty, OR people taking the risk with whatever money they have and then can't get a mortgage because of sudden changes?

The fundamental problem have been that projects have been launched on faulty grounds from the start and who's gonna pay for that? Of course, the "speculators"! This place have been heading for this a long time because of nothing stopping it from happen, and no one acting to stop it, government and developers have promoted it because it has meant good business for them.

 

[NewLook]

GRATEFUL for a DOWNGRADE?

Corporations aren't "kind." Corporations want to make you think they CARE to protect their international investor reputation. Lets just suppose Emaar is on the brink of cancellation or buyback (say, on 'M' Burj Dubai towers),in which case they would have to refund escrow monies to everyone. They'd be stupid not to offer a less desirable downgrade to anyone who will take it so they dont have to pay anyone back (i.e., they get to keep your money). Furthermore, when Emaar gets you "hooked" into a downgrade, it takes the pressure off their sales department to find a new investor for a property no one wants, plus it furthers the chance of an incoming stream of money on your next payment. This is how they get you to bend over (twice) plus get you to smile and say thanks. Personally, I can think of better things to be grateful for.

 

[dubister]

So who exactly is the specualtor? The developer that unchallenged can launch projects, default people and keep the money while they are abusing escrow accounts, and then resell properties, and once they cancel, they still haven't built anything but the escrow accounts are still empty, OR people taking the risk with whatever money they have and then can't get a mortgage because of sudden changes?

The fundamental problem have been that projects have been launched on faulty grounds from the start and who's gonna pay for that? Of course, the "speculators"! This place have been heading for this a long time because of nothing stopping it from happen, and no one acting to stop it, government and developers have promoted it because it has meant good business for them.

yep that is exactly what has happened. Basically the rich got richer, some of middle classers trying to be rich made it, some got taken for a ride... and the poor bascially got screwed. Make no mistake, now that era is over and all the theft is over with...the REAL property market of dubai will continue and flourish like the rest of the world. With streamlined RERA, Launch Oversight Comittee, Emirates ID linking all the UAE wide credit system with credit scoring, escrow accounts for Real estate agents, and the list goes on. It is going to be much more stable with steady growth targetted towards end users... too bad vegas style fun is over...

 

[NewLook]

Enough of the speculation

yep that is exactly what has happened. Basically the rich got richer, some of middle classers trying to be rich made it, some got taken for a ride... and the poor bascially got screwed. Make no mistake, now that era is over and all the theft is over with...the REAL property market of dubai will continue and flourish like the rest of the world. With streamlined RERA, Launch Oversight Comittee, Emirates ID linking all the UAE wide credit system with credit scoring, escrow accounts for Real estate agents, and the list goes on. It is going to be much more stable with steady growth targetted towards end users... too bad vegas style fun is over...

Stability of markets (real estate or otherwise) are defined by things other than oversight committees, escrow rules, credit systems, and even supply or demand. Dubai is no exception. Whether or not this stability will proceed as a consequence of these changes is highly speculative. And, if I might add, isn't speculation what got the RE market of Dubai into the current state of grim that it's in?