Some good discussions going on , Really enjoyed some of the logics. I also heard about power shortages in Dubai , especially in Discovery gardens.but Dubai electricity and water authority is building a a huge power plant which will increase their capacity by 4 times the present one.
But I dont know if there will be enought number of people coming in to stay in the new developments like JVS , SC , IMPZ , DIP etc

It's healthy discussion and exchange of views and nothing personal.

You have a valid point, however at the moment, getting commercial space in Dubai is difficult with 1% vacancy rates. Dubai chamber of commerce issued 1100 licences last month only as per the article on Gulf News. Yes, all that is bound to change when more commercial property comes in, which takes me back to the point I made.

An investor ( investor A ) who bought ar 1295 dhs psf in Business Bay is bound to do well than an investor ( investor B ) who bought for 2800 dhs psf. If the market should correct, the corrections will be on the prevailing rates of 2800 dhs psf if not more.

Now even if the market corrects by 50%, investor "A" who invested at 1295 dhs psf will not be affected. More over investor "A" would be able to rent out at a lower rate.

Right now it's a wait & watch situation. Everybody hopes that people will come in. Dubai is strategically located they say and that should be a plus point.

This is my analogy, hope it's right.

Regards

Roshan

Many thanks to you both for your comments.
Yes I bought in Dubai as an investment, and from my past property investments I have found that if you have a little patience then you usually get a good return. Yes I would have prefered to have Eden Gardens finished on time, but rather than pulling out I have revised my payment scedule with Lokhandwala so this makes things a little less painful.

Hi Roshan

Your thoughts are very sensible but the tread is about Eden Garden.
People are not happy with the delay of the project as they are loosing money.
A year delay will cost them at least 50000 DHS (per studio).
And I don’t think if the construction takes longer, the property will be of better quality, for the simple reason that the cost of the materials and labour are going up and the contractor will try to save money.
So one year delay will cost you not only money but quality.
Further more the price of the property goes up at the time of completion and is difficult to sell if on hold .
As I can see some of the people paid everything in advance and I understand their frustration. But as I said Dubai is full of surprises. Some people are lucky (like Roshan) and some are not ( like the people bought in Eden Gardens).
So far very few have lost money from purchasing a property in Dubai and that’s a good sign.
My advice is - don’t gamble with all of your money and keep some for rainy days

Hi guys
Here is an interesting article about energy shortage or supply related in middle east I found it in todays' gulf news
Gulfnews: Energy shortfall could hit UAE economy by 2012
If all the projects start in time there will be huge shortage of power and water.But I feel that UAE has their plans in hand and they are working on it.Let s hope so.Lets hope positive side.

Hi Georgihh,

I was talking about Dubai and did not run away from the subject. What holds good for Dubai holds good for Eden gardens as well.

Investors invest in real estate for 2 reasons capital appreciation and positive cash flow. What you are saying is that investors in Eden garden will loose Dhs 50,000 per studio. If the property has appreciated by 15% per year
( more considering that building mateials jumped by 40% ), your Dhs 50,000 is overidden by the appreciation, so what's the problem.

Quality issues another valid point from your side, that's valid when you deal with fly by night developers, however when you deal with a good developer like Lokandvala, reputation for them becomes more important than cutting corners.

As I have said earlier on, Lokandvala are class "A" developers in India. They will not risk their reputation for 1 project. Eden gardens is like a drop in the ocean for them.

You make investors who invested in Eden gardens as if they have lost everything in life. Not the case, give it time and see how well it will do.

Delays should be expected when going for off plan properties. That's one reason why people go for ready properties paying a little more.

Another valid point you made is " nobody looses in property " and that not only applies for Dubai but anywhere in the world. Markets will correct and they will come up again.

That's the reason Robert Kiyosaki ( a high school drop out ), Russ Whitney ( used to work in a slaughter house ), Dolf De roos ( a Phd in engineering but didn't work as he made more from real estate ), Donald Trump ( the world knows about this man ) stuck to real estate as that was the key to riches. If you have a chance read the following books, it will change the way you think about real estate :

Robery Kiyosaki : 1) Rich Dad - Poor Dad 2) Retire young retire rich.

Dolf de Roos : Real estate riches

Russ Whitney : Building wealth

Donald Trump : Real estate 101

These books changed my way of thinking.

Regards

Roshan

Now that they have delayed the project, you are in a better position to twist arms. Delay the payment terms as far as you can. Since they are on the receiving side, they will oblige.

As the saying goes " don't wait to buy property - buy property and wait "

Gd luck.

Roshan

Hi Roshan and guys,
Having said that lokhandwala is a reputed developer in india,How come they are facing problems in their first ever project in Dubai ?As an investor one would consider the truthfulness and commitment of the developer,If they give good quality in the end,than its fine or else, investors will see other projects handed over and they are still not half the way built.Ultimately it will delay that much of rental income and will spoil developer's reputation.Developers like Rufi and bangash are also new and are doing better than lokhandwala.at least they have gone to the site and started some excavation till now.They are also doing their first project and they did not have any problem with getting their plot or whatever.
I agree that all projects are delayed due to lack of manpower and materials , but with eden garden there is some other type of problems.It seems so.
In my openion,more delay will help only in one way,that is we can ask for adjustment in the payment plan.appreciation is more with the completion of the project.

Hi Diane

I checked there and nothing going on at present , as correctly mentioned by my friend Roshan.
By the way what sort of adjustment you could get in payment plan? If you dont mind to share with all of us investors in our cases with other developers to deal with, in future.

Thanks and Regards
Bye

This is what happens when you tread on unfamiliar grounds. They must have not expected problems.

Please review the previous posts on this thread. A member mentioned that the delay was due to some approvals, she had met them and she was satisfied with their reply.

Incidentally Lokandvalas have delivered a project in International city. It would be interesting to know if that was delivered on time. Does anyone know ??.

Regards

Roshan