The Palm Jebel Ali Project Appears to Be Finished
Nakheel has offered investors in the stalled Palm Jebel Ali development alternative homes on other projects, casting further uncertainty over the future of the vast reclaimed island.
Some Dubai developers have encouraged home buyers on struggling projects to transfer their deposits to other developments that are nearer completion.
People who bought waterfront villas on Palm Jebel Ali, where prices have tumbled by about 45 per cent from their peak in the third quarter of last year, are now being asked to transfer their investments to projects that include Al Furjan and Jumeirah Heights, which are both under construction.
But the move has been criticised by investors, who expected to move into their new homes last year.
“Nakheel has called investors and given them this option,” said Saqib Iqbal, who bought a villa in the development in 2006.
“But most investors would like them to complete Palm Jebel Ali. People have paid premiums on top of what they paid originally, it’s a disaster to be asked to move somewhere else.”
Palm Jebel Ali was the second artificial island project to be launched by Nakheel and was designed to accommodate up to 250,000 people… The global financial crisis, which hit Dubai in October last year, was a further blow to the development as speculators withdrew from the market. Other Nakheel projects, including Trump International Hotel and Tower, the Nakheel Harbour and Tower development, have also been put on hold.
Nakheel must repay a US$3.52 billion (Dh12.92bn) debt, which comes due next month… SOURCE
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Tags: 000 People, Blow, Developers, Disaster, Global Financial Crisis, Home Buyers, Investments, Investors, Iqbal, Jumeirah Heights, Nakheel Projects, New Homes, Palm Development, Palm Jebel Ali, Premiums, Speculators, Trump International Hotel, Trump International Hotel And Tower, Uncertainty, Waterfront Villas
