Damac Palm Jebel Ali development cancellation is cancelled
Posted on 17 April 2008 with no comments from readers
In what looks to be the final twist in the saga over Damac Properties attempt to cancel its Palm Springs apartment block on the Palm Jebel Ali, an artificial island off Dubai now scheduled for completion in 2012, the government has intervened and the development has been reinstated in its original form.
The intervention of the Lands Department came after several weeks of controversy and threats by the off-plan buyers to take the matter to the Ruler’s Court.
Lands Department development and marketing director, Mohammed Thani told Emirates Business that Damac would complete the Palm Springs ‘at the same cost and the same conditions.’ And he said that the rising cost of materials had been the main reason for the project’s cancellation.
No cancellation policy
It seems the authorities have decided to send a message to all developers in Dubai that canceling off-plan schemes due to rising costs will not be tolerated. Clearly the aim is to protect the good name of Dubai real estate.
Off-plan investors in the emirate should take some comfort from this ruling in their favor, which echoes the authorities strong support for tenants battling recent rent rises by their landlords.
Pragmatism
In truth, Dubai is taking a pragmatic line and handling its booming real estate market with the same skill that turned a tiny fishing village into the world’s seventh largest port city in barely more than a generation.
Indeed, the visibility of the Palm islands remains far more of a blessing than a curse for the emirate. Standby for this September’s opening of the first hotel on the Palm Jumeriah, the Atlantis The Palm.
This 1,539-room mega-resort started accepting reservations on February 1st and will transform the Palm Jumeirah into a leading tourism attraction with its water park and many restaurants.
Atlantis The Palm’s launch will also mark the start of the autumn buying season for Dubai property, and with alternative investments all looking pretty sick this year expect to see the boom enter a new phase.
