Property is going up so fast in Dubai that 700 homebuyers seem to have forgotten even buying their new flats – with state-owned developer Nakheel searching for the people who put a 10 percent deposit down but have never shown up to claim their finished home.
“As we speak today, 8,300 have been delivered, keys handed over (but) the remaining 700, we are still looking for the customers,” Nakheel CEO Sanjay Manchanda said at a recent event at Impact Hub in Dubai, according to 7Days in Abu Dhabi website.
The CEO did not reveal where the unclaimed units were, but Nakheel's residential projects include The Gardens, International City, Jumeirah Islands and Jumeirah Lake Towers.
Who would walk away - or forget about - a 10 percent deposit on an expensive new construction apartment in Dubai?
“Maybe the person has left the country, or due to natural causes such as a death?” Manchanda said. “Or maybe they just paid 10 percent (deposit) and it’s not a major amount for them and they have forgotten about it? Or they have changed their contact information?”
Assuming these 700 units weren't the cheapest flats ever to be built in Duabi, it's hard to imagine someone forgetting about a potentially $100,000-plus deposit.
Despite the contracts being years old, and the flats being long since completed, Nakheel finds itself in a pickle over the floating 10 percent deposits.
While there are procedures for liquidating nonperforming contracts with less than a 10 percent deposit, the Dubai Land Department rules do not allow contracts with higher deposits to be terminated without action from both parties.
So these apartments will sit forever? Countdown to regulatory change ... 3 ... 2 ...