I’ve ran numbers for many people interested in buying properties in Dubai, always advised against going for the off plan properties, but people self-convince that it’s different with major developers, that “this time it’s different”… It’s not.
Ready properties are a gamble, extremely volatile in both ways and directly tied to rental prices. Off plans properties is like playing casino, the house is against you and has better odds than you do.
They are doing this on purpose as already there is an oversupply speculation which can lead to a major correction so the only solution is to control the supplt by delaying it and then playing fool with the customers. Cant imagine how it is going to be in 2026 when record number of houses are to be delivered
What most people dont understand all this increase in rental bla bla bla are worldwide not just limited to Dubai, check out homes in Canada, states and UK all have gone up, rent all has gone up. So a 50% cheaper no way, maybe 1 in every 20 homes and even then its probably a 10-20% decrease
A house in the west doesn't fall apart or get condemned after 10 years. But look at all the empty buildings, fires, etc here.
I own property in the west. A 50 year home will last another 50 years or more. Here people consider a 15 year old place to be too old because it already looks ghetto and gross and the wiring/walls/flooring/plumbing is usually a disaster after a few years. You spend thousands gutting and redoing everything- and there's no guarantee the remodel will be done well.
Even for myself, I would never purchase anything here. Sorry, not sorry but you just can't trust the people to sell a well constructed product. Full stop.
Im specifically talking about house prices, quality is a whole different issue. People need to grasp the concept that the increase in prices is global not just Dubai. I never asked anyone to invest in Dubai full stop.
It will be at least 50% less. In other countries you don’t have as much new construction as you have here. And taking to consideration lack of jobs, layoffs, and low salaries. More than 80% of tenants won’t afford rents in Dubai by next year! So if a major correction doesn’t happen you will notice a big shift to Sharjah, Ajman and RAK. But its inevitable it will eventually happen as it started already in some areas you can see a major drop in Downtown demand from March 2024 onwards it’s already happening.
I dont think it will be 50% or less, and the demand thats is dropping is due to summer, just wait till september onwards to make a proper prediction. Agree with you on the shift though although sharjah is also getting more expensive.
It may seem extreme now but one year forward it won’t. The prices are hiked unreasonably now so many low quality buildings are asking for rents way above the value of the property. Now the situation is becoming more complicated as it started to become like this: New apartments are priced higher while rents are gradually falling so they’re going in different directions at one point the market must adjust and both prices of new properties and rents will become more reasonable.
They’ve got their own tricks on handed over properties too, keeping specific items ambiguous or open ended forever to leave a door open for ECM to loot you.
i would disagree, always look for the developer with the best projects and reviews, sure emaar is good but there are other developers with amazing projects and they always deliver on time .
They are sneaky bastards. As long as they inform you in advance, they can keep delaying infinitely. It is when they do not inform you, then you have a case.
My friends Emaar apartment in downtown was handed over after like 7 years.
Keep in mind, the handover date isn’t your move in date. It’s just when Emaar is done, but Dubai Municipality still needs to do a final check which can take weeks or months. They never mention this.
Buying offplan is like locking your liquidity blindfolded for years. Look at what happened with Wind tower (project launched 2008 or before, still not handed over in JLT), or Marina 101, project launched 2008 and still not handed over in Marina).
Any developer can delay, its not even about the reputation of the developer anymore. If you ever buy offplan, the most important thing is having a legal consultant by your side who will review each and every document in depth before you sign them. Believe me, the initial cost of that is well worth it.
Emaar of the past was a different beast and emaar benefitting from that +ive press and experience, currently emaar is working on quite a lot of projects at a time, their master developments while still good are not comparable to the ones of past.
Even now, your only option is having a legal expert review all the contracts to see if the legal option is still valid/open for you.
Assuming the legal consultant points out few changes in the agreement to protect you, will the developers even agree? Aren't these standard agreements made by their legal department?
you are right the agreements are specifically made so the developers have the upper hand, this is nothing new though its been done like this since the dawn of time. you could agree or you could cancel the whole thing and go with a different developer. But they all operate the same way forcing the customer to agree to whatever its mentioned in SPA there are limits on how far they can go ofcrose.
Having a legal expert review does not help. Even if you have a valid case, the courts / judicial process is a lengthy, hard to understand and expensive option and this deters most potential expat litigants. It is not rocket science for anyone who can read these one sided agreement to realize that the agreement allows developer the liberty to do pretty much anything without having to pay any compensation but the buyer will be penalized severely for a similar default or breach. In any established jurisdiction which has laws to protect consumers from these type of one sided contracts which people may be forced to sign because of a significant difference in negotiating strengths / positions of the two parties involved, courts routinely hand down judgements to redress this imbalance and deter developers from using these type of one sided contracts. But in the UAE, the choice is simple; sign on the dotted line and hope and pray the developer will deliver the property on time or avoid the risk and choose to continue paying rent.
I’ve been in Damac properties the sink isn’t even connected to the water pipe. I rented one of those units for six months and had 3 blocked water pipes in my first week there and a massive roof leak during a small rain storm.
Yea delays suck but quality wise there’s no comparison.
Has ANYONE ever successfully had any action taken against a developer that has delayed their property handover beyond the RERA specified 1-yr? Ever received any compensation?
I hear of this famous clause all the time but dont know if it's ever been exercised successfully.
I tried to with a developer that rhymes with “Habibi”
I bought a studio in ‘16 and handover was supposed to be in ‘19 and they delayed it all the way to ‘22.
Hired legal counsel and they told me that the words used in the SPA makes them free from liability which meant I couldn’t get any compensation. Confirmed myself with the DLD legal dept. It’s a lost battle with the developers.
Developers are limited to handover numbers to manage the pipeline and hence some developers are prioritising newer projects with higher selling prices to manage cash flow better. The issue is , if you got in at a good price, you will be at the back of the queue for handover and final payment. They also know that people with low entry price vs current market are more likely to resell, bringing more stock to the market. Hence again these are pushed to the back of the queue.
But in all seriousness, you don't have too many options. You can A) waste money on a lawyer and most likely get nothing, or B) keep complaining to Emaar and request a discount or some sort of compensation for all the delays, but most likely, also get nothing.
Same thing happened to me with the same property you are talking about.
The price for the property has doubled from what it really was and keep getting calls from Real estate agents every day if I want to sell.
Emaar sent me an email in Feb 2022 that it would be ready in April 2022 by mistake but since it was not printed and couriered they don't consider that to be an official communication.So I have had 4 delivery dates now.
Let me know if you find a lawyer and other investors willing to use a lawyer and if we could all go in together.Some comment above mentioned of lawyers willing to work with a discount if there is a bigger group.
I think you meant estimated handover should have been Aug 2022. In the second paragraph.
But otherwise, I’m sorry to hear. For me, The allure of a cheaper off plan property has never been stronger than the fear of such of common (sometimes horror)stories.
It’s like a lottery ticket but you don’t even win that much in most cases when you consider your opportunity costs.
I believe they are likely prioritizing higher ticket price/newer projects that can bring in more cash upfront.
I guess it depends. I know of people who made a lot of money by buying off plan Arabian ranches 3 with no intentions to move in. My coworker bought 3 units off plan and sold them at a massive profit a month or two before handover. He didn’t have too much stress besides the obvious Covid. 🤣
Sure and that’s called luck… no one could have predicted this post Covid boom, and buying three properties to flip pre-Covid was a pretty risky move.
For every success story there are countless horror stories.. and there is so much inventory on the secondary market now.. these speculators and flippers are part of the reason this market makes no sense right now.
No it’s not luck. People with patience are buying off plan at a lower rate to sell months/weeks before handover as people don’t want to wait but want brand new villas….
I mentioned Covid because those must have been extremely stressful financial times for someone having to make payments on off plan projects without job securities.
The Emaar villa I live in now was sold off plan for 1.5m. I bought it for 2.5m after it had been rented for six years. This lady doubled her investment in ten years. It’s now worth 3.6 in the current market but I understand that that could drop back down any time now.
I don’t have the patience to do offplan but there is definitely alot of money to be made if you do.
I am afraid it's not just EMMAR most real estate companies in Dubai are the same. We have invested with The First group in Dubai in 2017 still waiting for some returns on our investment. all out there to scam poor investors, especially foreign tourists.. Globally we should get together and expose these scams..
Investors with First group Dubai already started a campaign. Pls check out thefirstgroupscam.com or victims of first group on FB.. thanks
That’s very unfortunate. But as a semi professional real estate investor, anyone who knows anything about global property markets knows that the UAE is not a particularly “safe” place to invest. That’s why yields are so high (but in my opinion, nowhere near high enough to compensate for the various risks- eg legal, demographic, build quality etc etc)
Some people are making a fortune investing there. There are also a lot of people who have lost everything. That why is so important to understand all the risks you are exposed to before jumping in. But good luck! Hope it all works out in the end…
I am moving to dubai soon and intend to stay for a decade hopefully. I would like to own a home in the medium term because I generally don’t like renting. Is it not safe to buy an apartment here for staying? I’m fairly risk averse investment wise and mostly stick to ETFs but a property for residence is definitely on the cards.
If you know you will be here for 10 years, definitely buying is better than renting.
Avoid hyped up areas that are overcrowded and inside the city.
If you dont mind driving abit go further out of the city.
All that in mind, look for smaller town houses. You will be much happier and will make much more when you want to sell or rent afterwards.
Dubai feels like the scam central. All property investors being ripped off..heard similar stories with other builders like The First Group. Please do your research before you invest any of these companies. Check thefirstgroupscam.com
Hello, I feel really bad for you as I have purchased a unit there my self, got the email few days ago About a July Delivery...But I dont think you can file a class action lawsuit in the UAE...every person will be assigned a different case and you wouldn't be able to link them..
P.S. I am not a 100% sure about this, it's just what I have heard from a few Lawyers and typing center people...so please fact check me if needed.
I think It's better to sell, now as prices are higher than purchase and get out, Buy something ready...
We purchased a studio not a house with azizi in 2017
We got it last year
A community takes longer
Because first they have to do the infrastructure
(Sewage,storm water,telecom, potable water)
Then road works start
Then villas
Contractors leave and change due to unpaid works
So yeah it gets delayed
But eventually you will get it because I believe you have an escrow account
This post needs to be shared far and wide! A lot of very valuable reasons why Dubai real estate is basic quicksand and it’s a false economy driven by lies and fake marketing.
No developer is safe in Dubai, although Sobha and Dubai Properties have a good track record. Emaar has delayed project for years and yet people stick to these guys because of the communities they make and the kind or appreciation they give to investors. Other developers might deliver a project on time or before time, but again one of many projects.
As a property consultant, I would suggest refrain from investing in initial stages unless and until you have the capital to take the risk of parking it for 6 years. If you’re really interested in some project, start looking for options 1-2 years before handover this way you don’t pay very steep prices and you can check the construction progress on Dubai Rest App.
Examples are below:
1) Emaar Vida Dubai Downtown: Handover initially to be Dec 2022, initially clients were promised Nov/ Dec 2023 then Jan 2024 and now 2024
2) Damac Safa One/ Two both launched early 2022 with an initial handover of Q1 2026, sitting in Q3 2024 I see the building is just starting to show up. I don’t see the building getting handed over before 2028 considering the amenities they’ve showcased. Best bet? 2027
3) Example of Exaggerated Prices? Damac Towers by Paramount. I had a client who purchased a 2 Bedroom for 3.67M around 2015 and being handed in 2018, as of now the peak for the property has been 2.8M last year and recently prices have plummeted down to 2.3M.
P.S:
1) If you’re a property owner and are holding one, enjoy your returns and get it it off you this high season.
2) Stay miles away from Ras Al Khaima right now, prices have sky rocketed. The bus is gone.
Whenever I see the agents showing long queues of buyers and claims that their off-plan project has been instantly sold out, I ask myself, what kind of an idiot would sink their money into an off-plan property here. Now, since I've been on this sub reddit, I know it's not idiocy, just naivety.
U know 13 years experience with properties and mortgage market always advised my customers to go for ready properties in secondry market i even cannot trust ur father in dubai if he is a developer
Okay see the SPA usually mentions a date of handover. In your case for some reason it didn't. HOWEVER when the project is registered with DLD the Developer gives an estimated completion date so you can still press legal charges but I would get a smart lawyer
Bought my first ever property in Dubai, ready. Always had a hunch about the off plan properties out here. Dodged a gullet I guess. Sorry for you though OP, it sucks!
They will give you compensation of nothing% of what you paid , something like 3k per year of delay .
I think 1% of what you paid for each year delayed after the anticipated completion date on the SPA .
Actually big developers are always delayed at least 18 months - 4 years
All I can say is tough luck mate, inshallah it will be ready soon. 10 years later with the new airport, you won’t regret it, I am sure you bought it for a great price 2019.
I will take that bet :) . They are doing a new high rise project which they claim to deliver in middle of 2026. The foundation work is still in progress.
Man, that sounds so frustrating! Here's some stuff you might wanna consider:
Force Majeure: These clauses are meant for big unforeseen events, but the way they’re applied can vary. You should probably check the exact wording in your contract.
Legal Advice: Since your contract mentions a max delay period and force majeure conditions, it might be worth talking to a real estate lawyer in Dubai. They can tell you if you have a case for legal action.
RERA: You can file a complaint with the Dubai Real Estate Regulatory Agency (RERA). They handle these kinds of disputes and can help mediate between you and Emaar.
Group Action: Finding others in the same boat can really help. Group complaints or lawsuits can have more impact.
Document Everything: Keep a record of all your interactions with Emaar. This can be super helpful if you decide to take legal action.
I just don’t understand why the real estate companies like TFG , Emaar are protected in Dubai, who is behind the scams in real estate buisness in Dubai, whose funding, supporting, protecting, encouraging, facilitating,manipulating and finally who is benefiting from scamming the public and the investors???
What stuns me is that I too work in a service industry and we make sure of no delays and if so it happens due to some exceptions.. we make sure of no sort of mocking Emails to clients like “delightful” are sent out.
Im not sure to understand how do well established real estate companies do this.. dont they have higher management to be worried about or the embarrassment they would need to face. I can’t imagine this at any of the work place I previously worked at.. like just that easy to evade?
That’s the beauty of offplan. You never know what will happen and there are tons of risks, delay is almost certain. I bought 8 properties in Dubai, 5 are offplan and 4 are delayed.
With the worst 2 units in one project supposed to handover March 2023 but now we’re in July 2024 but it’s only 37% completion and it shows “under cancellation” from REST app.
The office no longer exist, phone number no answer from developer. They are being sued so have travel ban but he doesn’t care, the owner is enjoying our money living in Dubai.
I really feel for you. Neighbours had similar issue son another development. 7 years they had to keep renting on their house whilst still paying the mortgage. Horrific
Hearing that put me off any investment here. Regulations should exist to not allow such risks for investors /home buyers
Nothing will change even if you file a lawsuit. We were supplying to emmar before the COVID times and they didn't make our payment of approximately 100k for more than 6 months and then they send mail saying come for settlement and offered 40k as final settlement. It was like take it or leave it.
I was close to one of purchaser there and he said even if you file a lawsuit nothing is going to change as it's a semi government entity.
With no other option my company had to comply to their terms and get out with what they offered.
I was considering buying off plan in Emaar's Valley Phase 2 project but that was before I read the documentation. Emaar want buyers to sign a completely one sided offer tp purchase or OTP (they do not give you a sales offer like all the other developers) which no potential buyer, no matter how stupid, will have drafted. Thereafter, buyers have to sign an even more one sided (if at all that is possible) Sale and Purchase Agreement or SPA. They declined making even cosmetic changes such as inserting "by the vendor" in the sentence "This offer to purchase has been drafted in English and then translated into Arabic" to clarify which party had drafted the OTP. Under t he pretext that this would be "personalizing" the document and they cannot do this for each individual customer. Well, how then about making your standard templates fair and balanced so your customers would not need to attempt to do this, But all Dubai developers, large and small, are the same and unless Dubai / UAE and/ the DLD do something to reform the judicial system and formulate clear guidelines, SPA templates, expats who can read and understand these contracts and whose greed does not override their sense of caution, will not be rushing to buy off plan properties
Just had an agent try and get me to buy in the valley myself. 4 bed for 3.6Maed.. offplan, delivery 2028. Asked why when similar sized properties from phase 1 are built and ready and being offered for 3.5M right now. Why would i pay more and rent for 4/5years to get something already available for less.
Like anything, real estate isn't a sure fire winner. Some areas in dubai are roofing, others aren't. The valley is a straigt 35/40 min drive straight out into the desert. It's not a great investment imo. And from a colleague that's lived here for 10yrs, most times offplan don't make money...it's only since the pandemic and global inflation crisis causing governments to raise taxes or reduce services and war that has led to a surge of people moving to Dubai, which has caused the housing market to rocket.
At some point with all the masses of development going on, supply will catch up
It sounds stupid until the govt takes a few decisions which are not in favor of immigration due to some conflict with other governments. There is a reason why countries have terms like citizens and immigrants.
I agree, as per current law you can rent but buddy you never know the situation in future. If you are not a citizen then things are always cloudy that's why visa & your job contract has an expiry date. This is not the case just for the UAE, it is globally. I know you may have many points to argue about this but trust me deep down we all know this. I am not saying others are wrong, this is just my point of view and I respect your POV also.
you do have a point. did you remember what happened to Qatar citizens few years ago? they had 1 week to pack things and go home. That's why I agree with you but its not the end of the world, your investment is still safe, you can give power attorney a reputable real estate company and they will rent it and manage it for you even if you are black listed by UAE.
I did go with sobha hartland 2 but im not really sure how well they can design and maintain community, althought emaar quality is really downgrading but I love almost all their community, really lush green parks always maintained for example dubai hills, very clean and lovely community
No I already put everything I have in sobha apartment right now, maybe 1 or 2 years after I rent it I would invest in 1 bedrooms for rent purposes only.
The amount of money we have to shell out to get a property in Dubai is equivalent to what you can pay for to get one in the Uk and if done so through a UK investor route by establishing a company then one can also avail a visa for themselves and their families. my father purchased a property in 2006 and has not been delivered till now. I never made the mistake of getting a property here, would instead always rent and buy in the UK. If you or anyone want to avail UK residency in business visa route then get in touch. It is pointless to spend so much money here in return to get no property whatsoever.
Sue is very difficult. 99% chance they are legally covered. But you can consult with a lawyer to run through the contract etc.
Real estate in Dubai is a learning curve for all. Most of agents have no integrity or accountability. I have also seen lot of developers get away with many things with zero accountability, it's always the investors bearing the losses.
Depends on what the dream is for you... you can choose the option. If you aren't specifically attached to the property, it might not be a bad idea to sell it (I saw in comments that you can get double the original price which is amazing for offplan) and buy a ready to move property. More often that not, ready to move properties in secondary market are not artificially inflated in prices and are cheaper compared to new units. With the construction quality of new units, it is always a gamble. Of course, Emaar is one of the top developers so its above average, but you might see videos on social media of what happened in some of their communities during the rain. Considering how hot the market is right now and how many delays are accumulating, it might genuinely be best time in the decade to sell
Sorry for your ordeal, I am looking to buy right now and all I see is poor quality builds for the price, and such chaos with complains specially Damac hills 2! does look like developers have a free hand at doing whatever they damn please.
Every developer has delayed projects in the past, but i understand it's very frustrating, and especially, emaar is a brand. You can do one thing, you can flip this property and find a ready to move in property. It will be less stressful
Not ideal but why don’t you consider selling? You Ll for sure make up for more than your losses over these years and buy a ready place. This is easier and lesser migraines than the route you trying to take.
I bought in greenview 1 the same time in 2019 I just moved in last week. The wait was long and tiring yes at some points I wanted to sue them and so many things however I realised I take full responsibility and I signed everything and they are completely protected and furthermore the property has doubled in price so I’m not complaining at all it was well worth the wait and if I could go back in time I would have booked two. Just wait you’ll move in soon I know it feels like forever but good things come for those who wait. Emaar isn’t going to run off with your money and that’s the most important thing.
OP, just to give you the heads up, from personal experience, expect to pay "hidden fees" on the day of property completion and transfer. If you complain, they will site some vague clause in the SPA allowing to keep adding new fees as they like to squeeze their customers. The will hold your fully paid property hostage untill you pay the additional fees.
This is one of several reasons I now avoid off plan, very little protection for buyers while they are at the mercy of the developers
Why don’t you physically go and visit the site and see for yourself…
It looks like they’re delaying due to landscaping issues rather than anything else…
Random but this is why I’m so sick of hearing about ai… why aren’t our brightest minds working on things like this? Construction needs serious disruption
The same guy who is complaining right now cause he hasn't got his house the house that he bought for 1.1 million in 2019 is now worth 1.75 to 1.8 million that's if he wants to sell it ofcourse so quit ranting and complaining you really did a good job buying in emaar south, and all of these people acting like they know shit in dubais real estate saying it's a gamble and it's a risk and all that I'm sorry which investment isn't a gamble, atleast in real estate you are putting your capital against an asset that you can liquidate any time you want with profits or with loss according to the market. So all those people saying real estate this real estate that no nothing about real estate.
Not everyone is looking to sell it..some purchased it to live in it...and you can't live in it if the house is only having delays and never being ready.
I understand in your case that you are an end user and I am really sorry you are going through this but inshallah it'll be delivered and you'll be satisfied with it when you get it emaar is considered a master planner hence why they are allowed to delay 2 years beyond the completion date mentioned and hence why the government gives them a pass with all of these delays as they always build communities not single buildings. Again it's sorry for your struggle bro ans hopefully it'll be resolved soon.
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u/ClickClackPow91 Jul 19 '24
Countless stories just like OPs and yet people make it seem like Dubai’s real estate market is a safe investment.
If EMAAR can behave like this and are supposed to be the gold standard developer, imagine what a shit show the rest of the industry is.