New service available to help investors recover money from off plan properties
A property agency has launched a service to help investors of off plan property in the United Arab Emirates recover the value of their purchases.
The Smith and Ken agency said its Real Estate Recovery Scheme works via a like for like credit note to the value of what they have already paid against one of its properties.
‘There is always an element of risk involved when investing in off shore development plans even though you do a thorough background check on the developer and the property. There are situations that are beyond one’s control like worldwide economic challenges or the developer going bust,’ said Benjamin Smith, the company’s chief executive officer.
‘Our Real Estate Recovery Scheme (RERS) aims to help investors in such unfortunate circumstances. Whether they have put down a 10% deposit on the property or paid up a larger percentage, we will help them to recover their money by swapping units in most delayed or cancelled developments for thriving completed properties in prime UAE and international locations,’ he explained.
Once an application for RERS is approved by Smith and Ken, the company invites the investor to choose a new property, and once it is done, Smith and Ken deducts the amount the investor has already paid from their new apartment, office space or plot of land.
‘Apart from more financing options and government regulations, innovative schemes like RERS are key to a recovery in the property market,’ Smith added.
The UAE residential property market has been hard hit by the global downturn with prices in places like Dubai falling by up to 50% since their peak at the end of 2008.
Smith believes the recovery is now underway. ‘There have been many distressed cases but there is hope, and signs of recovery are already there. Average residential property prices in Dubai rose by 2% in the first quarter of 2010 compared to the same period last year. Prices have now risen 4% since the last quarter of 2009 creating confidence in the market,’ he said.
‘Economic prospects are looking better. According to the International Monetary Fund, the UAE, after a small contraction in 2009, will likely post positive growth in gross domestic product (GDP) this year. The National Bureau of Statistics expects GDP to touch 3.2%. Dubai is also all set to house the Gulf regional branch of the world’s first specialised real estate exchange operated to serve the Middle East and North Africa. Developments like these are a welcome boost for investors,’ Smith added.
Assalamualikum
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i have purchased a property in Jumeirah Village Triangle. The villa was supposed to be ready for Dec 2008 and is now two years behind schedule. I have invested 90% of the total value, Nakheel does not reply to my numerous emails as to when I expect to have the property been handed over or what type of compensation in offered. I have mortgaged my own place in London and I am loosing money as my investment is seating not producing, apparently there is only the fixtures and fittings missing. why wont they reply?
I have purchased an apartment through Al Andaleeb in Ajman, development called chocolate tower, It has not looked good for the last 18 months that the development would go ahead and tthey have not got an Escrow account set up.
We made a telephone call to their UAE office and were told that ARRA were going to give them a decision in April/ May and if it is not going ahead they would refund all monies.
does anyone else have any info like this?
As a fraud victim of al attar fraud scheme I became highly curious to know how a person (?) can inflict such high amount of pain on so many innocent people, so I further investigated the man behind the so called al attar properties development through various people who to some extend new him. Following are some sad findings:
Ahmed Al Attar (very deceptive, secretive with cult like lifestyle, insecure yet very arrogant, ruthless yet uses the cover of religion to hide and show himself as compassionate, timid while hiding a lot of dark secrets, never has done any good in his entire life) was very low ranking Etisalat employee. In early 1980’s his father took him to work for one of his relative who was in the business of smuggling gold from Dubai to India. In one of this smuggling trip he did not deliver the cargo to the target and instead sold it to different people in India. Since the proceeds were illegal, the relative could not file legal action against al attar. This was how al attar made his first large illegal money. Then he got into importing wholesale fake brands into Dubai for few years. Eventually got into property business knowing that he can not continue with selling fake products in large scale without being fined, made few small apartments when he managed to get the attention of some of his old customer in India and others who wanted him to be their front man in Dubai. He eventually became a great fronts for a number of people (mostly from Iran, India, Pakistan and Afghanistan) to do business for him through cash (very often he would deposit cash in banks for a fee for them) and always can tell banks that he got them from the proceeds of rents. He eventually got into real estate development fraud as early as late 2004. Sold many apartments mainly targeting low income investors (knowing that they are the least likely to file legal action and launch complaint at later dates). Through great marketing campaign (offering free car/Dodge Durango) using local and international newspapers and magazines also participation in various real estate exhibitions sold thousands of apartments (seven apartment buildings such as Vue de Lac, Vista Del Lago , Toronto Tower, Vancouver Tower, Global Point, Polaris, Skyscraper and 1000 villas in Jumairah Village area) in many occasions selling the same title to more than one investor. He embezzled hundreds of investors out of their savings. With the investors money purchased the current “Al Attar Business Tower” (previously know as Kendah House). Ironically this even further increased the investors’ confidence that Al Attar would deliver what he promised! He used the same venue (al attar business tower) to further market his properties. Many more investors flocked to al attars and purchased properties during the real estate boom. He would not refuse any price since he did not intend to deliver. Remember that many of al attars are not necessary computer educated or even literate to express their opinion using social media. At later stage, he also intimidated some of investors by saying that he has some partnership with the royal family in Dubai through some of his employees and that if they launch any complain their visa gets cancelled. He also was dismissing any of his employees as soon as they suspected about al attar frauds. This kept him ahead of game for so many years.
In addition he used the gimmick of stating that he is going to build own factories related to construction (never built any, can see some of news article before) so that is the reason he can afford the very competitive price he is offering to his customers. One big loophole that he used in his contract early on was that he did not make link between the payment installments to the construction milestone; therefore, he continued charging the investors (some paid as much as 85%) without laying a single brick.
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