Half Built Buildings
 

What's the deal with all of these partially finished buildings. Many don't seem to have any activity at all, and at others you will see a handful of workers kind of hanging out not doing much. Seems to be worse in Sharjah, but also noticed this in Deira. Just curious :confused:

Re: Half Built Buildings
 

Progress...

A lot of projects have gone belly up (but not reported obviously - the lighthouse being the most famous), a lot of projects just get delayed by 18 years or so

Re: Half Built Buildings
 

18 YEARS?

FOCK!

Re: Half Built Buildings
 

didn't he do off with the money - the owner???

Re: Half Built Buildings
 

Would some of these be projects where the developer presold units, then ran off with the money? Some of the buildings I saw in Sharjah appear to be crumbling....and those are the occupied ones.

Re: Half Built Buildings
 

not sure but I am positive the lighthouse one was a case of the owner doing a vanishing act, I think sometimes they run out of money and they don't get finished. Very dodgy the property market out here.

Re: Half Built Buildings
 

there was defo one project in the Marina (is that Lighthouse?) where the developer ran off to Pakistan I think...it was reported in The Sunday Times. The people who had bought apts were led to believe for quite a while that Sheikh Mo would step in so as to avoid massive negative publicity, but this didn't happen. Not sure what the current situ is, I guess they are taking legal advice...poor sods.

MM, xx

Re: Half Built Buildings
 

yes that's the one, I saw it on the tonight programme with trevor mcdonald. The situation now is that the land was purchased from Emaar and apparently they are going to finish the building but at extra cost to the people who invested originally.

Re: Half Built Buildings
 

The "crumbeling " real estate market!!!!!:rofl:
Seriously, anybody buying must be a lunatic!!!!:blink:

Re: Half Built Buildings
 

Shame they haven't managed to get round to it yet though huh? I mean. It's only been a year hasn't it.

Re: Half Built Buildings
 

not sure when it happened, I actually thought it was longer than a year ago, I never go that way so not sure what state the building is in. Maybe the courts are involved etc and Emaar can't do anything??

Re: Half Built Buildings
 

hahahaha the courts are involved.

Good one.

Next you're going to say stupid stuff like "legal rights"

Re: Half Built Buildings
 

I'm sure that legally it isn't as simple as Emaar just stepping in and finishing off somebody else's half finished (or actually, just started) project. The Lighthouse must be at the centre of a lot of legal action at the moment.

I think a lot of the smaller developers rely on stage payments to keep the projects going. If they don't sell enough apartments/villas/shops whatever then the project runs out of money and work slows down until they can sell some more. I've said before, I would still buy but only from the larger developers and preferably on a development where you can see some evidence of building work going on!

Re: Half Built Buildings
 

Main reasons are:

The builders didn't take into consideration the sharp increase in raw material prices (price of steel and cement more than doubled in 2006). As a result, builders are facing a severe cash flow problems - very few actually tied up any bank financing - guess they were hoping to use the advance they received from their customers. Even if they sell more apartments (like BR suggests) they will still not be able to complete the project.

BR, even so called large developers are notorious for delays - take for example - DAMAC. They are totally mismanaged. They have so many projects which haven't even gotten off ground, and they keep announcing more and more. I would never recommend DAMAC! Have just heard first hand of several bad experiences.

Yes, sometimes if the builder cannot complete, then the master developer does take it over - I know of one case.

About the Burj foundation - I think it is just a rumour. The main contractor is Samsung Corporation so it seems highly unlikely......

Re: Half Built Buildings
 

Big companies still screw things up, especially when they're using poorly-paid and poorly-qualified labour.