Nakheel recently received US$9bn (Dh33bn) from the Dubai Government to revive stalled projects and settle debt, and have now announced more options to investors in long-term projects, such as Palm Jebel Ali.

Options

The options outlined by Nakheel are:

• Staying in the project
• Swapping into near-term projects
• Consolidating into other owned properties
• Consolidating into a third-party property
• Receiving credit that will be useable against any property at anytime and redeemable in five years

History

The debate began late 2009 when Nakheel offered buyers of waterfront homes on Palm Jebel Ali alternatives in Jumeirah Heights and Al Furjan. The buyers declined these offers, saying the options were “inadequate and not acceptable”, and said they would hire a law firm to represent them.

Property prices for a villa on Palm Jebel Ali plunged from  $4.35m to $2.45m in just two months when the financial crisis hit the artifical island in second half of 2008. The project was launched in 2003, but came to a halt in 2008 and on April 10 this year investors will meet in London to sketch up a plan how to put pressure on the project.

The National

Work at Marina Residences has progressed rapidly, with groundwork commenced in September 2006. Johann Schumacher, Managing Director, Palm Jumeirah, said:

‘Nakheel is handing over thousands of villas in the next 24 months and Marina Residences is no exception. Over the course of this year we’ll be handing over the keys for 900 homes, and we’re looking forward to welcoming the newest Palm Jumeirah residents from April.’

The six towers that make up Marina Residences hold 940 apartments and penthouses; a further 40 units rest on a marina fronted promenade in the form of townhouses. At the doorstep of each Marina Residence tower is Anchor Marina, one of Dubai’s largest marinas, with berths for 700 boats.

Gallery

However, despite the ‘Strata Law’ being in place for almost a year, few associations exist in the emirate. Instead, home owners in areas such as Discovery Gardens, The Palm Jumeirah and Jumeirah Beach Residence (JBR) have taken to organising unofficial committees to battle recent hikes in maintenance costs.

In JBR, maintenance fee hikes of as much as 129 per cent have hit owners. An apartment owner, Cecilia Reinaldo, is behind the efforts to organise a committee to fight the increases.

“When we moved in we were shown a brochure which promised five beach clubs and a beach park but it’s been a year and we haven’t seen them,” she said. “I don’t know where this money is going.”

She added that the contract said that as soon as the first building was registered with Dubai Land Department, an owners’ association should be set up to look at how the maintenance fees were being spent. However none has been formed.

“Some of the people I spoke to said they wished they’d have rented, instead of buying the property,” she said. “If they go up across the board then demand for properties will fall further.”

A spokesman for Dubai Properties was unavailable for comment. However, RERA CEO Marwan bin Ghalita confirmed to Khaleej Times that Dubai Properties had already sought out RERA for talks about setting up an owners’ association. Acting on behalf of Dubai Properties, Salwan Property Management sent out a notice to residents informing them that maintenance fees would rise from Dh9.5 per square foot to Dh21.75 per square foot.

Vincent Easton, sales manager at Sherwoods said: “These properties have been subsidised for a while now and I expect we are seeing the real price. Dh9.5 per square feet is quite cheap.”

Coupled with delays on moving in, residents of Discovery Gardens have had large maintenance fees sprung upon them without being forewarned.

Neil Whittaker, who was due to move into the property in June, but wasn’t handed the keys until November, said that he was asked to hand over a sum of Dh45,000 before he could move in. The bill included maintenance charges of Dh15,894 as well as community service fees and other charges.

“Nobody told us about these charges,” he said. “Nobody has told us how they got these figures; what it’s based on; if it’s market rate; if they are annual; if they will stay at this rate year after year. Nothing. I foresee many a fight with Nakheel about it but we have the house now and we are moving in.”“For a limited number of properties at Discovery Gardens, it was necessary to revise completion dates,” said a spokesman for Nakheel. “This was due to circumstances beyond our control.

“For all of Nakheel’s developments, each year’s service charges are budgeted according to the projected costs, and all accounts are independently audited to ensure accuracy and transparency for homeowners.”

Meanwhile, Palm Jumeirah residents have fought back against Nakheel’s plans to increase maintenance fees by as much as 40 per cent.

However, third parties not involved in the dispute said that Nakheel had been -on the whole- responsive to residents’ concerns. No one from the owners’ committee that is involved in negotiations was willing to comment to the Press.

Khaleej Times

Click image for large view

We announced yesterday that Nakheel had revealed their plans for a 1km high tower. As Cityscape Dubai 2008 has officially opened, Nakheel has revealed more information about their tower:

• 200 stories high
• Will contain more than 150 elevators
• 19 000 apartments
• 3 5000 hotel rooms
• 100 luxury suites located on the upper floors
• Expected to be finished within 2020
• Total cost: Dh140bn (USD $38.12bn)

Purchased last year by Nakheel’s parent organisation, Dubai World, QE2 will embark on her ultimate journey from Southampton, England to Dubai in November.

Nakheel will commence construction on her eventual home in September; a luxury marina development that will establish a cultural centre and tourist attraction on Palm Jumeirah paying homage to the famous ocean liner.

QE2 will form the pinnacle of a palatial pier that will stretch 300 metres out from the trunk into the waters of the Arabian Gulf.

A grand entrance to the pier will provide the gateway to a luxury residential and hotel quarter, which will feature elegant apartments, a private club, bars and restaurants, retail, wellness centre and gardens.

A high-end yacht club will service a major marina attached to the pier, giving residences on the trunk marina views.

Plans for the QE2 include its transformation into an ultra-luxury floating hotel, featuring public promenades, retail outlets, cafes and restaurants, as well as a heritage museum displaying artifacts from the QE2 and maritime history.

Johann Schumacher, Director of Palm Jumeirah, commented:

“The arrival of QE2 is one of the most anticipated events of the year and Nakheel is proud to be the custodian of such a historic treasure. The world’s most famous ocean liner will form the focal point of an exciting new development that will be a spectacular and must-see attraction on Palm Jumeirah.”

Gulfnews

The main parts of the project are: Atlantis, Trump International Hotel and Tower, village center and the village center marina, the fronds, the shoreline marina and the cresent. Palm Jumeirah has doubled Dubai’s existing coastline and will also double the number of beachfront hotels in the city.

Two airplanes have been sunk in order to create an artifical reef to encourage marine life and a monorail is being built to transport people to the island. It is expected to welcome 20,000 visitors a day.