#PROJECT-Ras Al Khaimah: LA HOYA BAY RESIDENCE (Al Marjan Island)

[beer51]

Hi Guys

Thanks for all the comments on Blu Mirage, much appreciate it. The agent has told me that an Escrow account is in place with Standard Chartered Bank (SCB)and all the money will be transferred to SCB. The agent has also shown be written confirmation fron Rakeen to say that they have bought the plot to build the hotel(5*), service apartments and residential apartments. I agree they are unknown developer but the money should be safe through the escrow accounts.

[Morrismarina]

Originally Posted by beer51

Hi Guys

Thanks for all the comments on Blu Mirage, much appreciate it. The agent has told me that an Escrow account is in place with Standard Chartered Bank (SCB)and all the money will be transferred to SCB. The agent has also shown be written confirmation fron Rakeen to say that they have bought the plot to build the hotel(5*), service apartments and residential apartments. I agree they are unknown developer but the money should be safe through the escrow accounts.

Positive news.....I'm sure Rakeen would have checked them out before allowing them to develop on the island. Go for it...good luck.

[Andy-M]

Looking at investing in Al Marjan Island.
Are the returns on the capital investment as good as people are saying, and if so how easy would it be to sell your proerty after say 5 years?
Have not invested abroad before so welcome as much feedback as possible.
A must would be to have the money in Escrow account, how safe is this though, as the developer would still have access to this during the build.
What is the expected time scale for the complete island, no point having a property that is constantly being driven past with heavy machinery during the building of other phases.
I welcome what anyone has to say

[Ali_Syed]

investing in al marjan will give high returns either in rent or re-sale. its ras al khaimah's big offshore project. you will have no problem selling the property. the full island will finish construction in 2011. could be bit delayed. but you particular development might be finished before. but not to worry, the construction around your building will not be a putt off for the potential tenants, as its quite a norm in UAE!

[Ines]

Originally Posted by Andy-M

Looking at investing in Al Marjan Island.
Are the returns on the capital investment as good as people are saying, and if so how easy would it be to sell your proerty after say 5 years?
Have not invested abroad before so welcome as much feedback as possible.
A must would be to have the money in Escrow account, how safe is this though, as the developer would still have access to this during the build.
What is the expected time scale for the complete island, no point having a property that is constantly being driven past with heavy machinery during the building of other phases.
I welcome what anyone has to say

For Capital Gain, for example using Palm Jumeirah as an offshore Island development investors have so far enjoyed returns of up to 300-350%. Prices per square foot started at approx 580dhs and are now 2190 dhs p/sq.ft for a full sea view.

An F-Type, 2BR 2055 sq.ft in Al Basri shoreline - original price was AED 1. - 025M now selling at AED 4.5M.

For Escrow, the bank will only release money to the developer when they can prove that construction has reached a certain stage. The bank will have an appointed engineering consultant to approve this.

The First Phase of Al Murjan will be delivered mid 2010 - yes there will be some construction traffic, however with all projects in the U.A.E. this is to be expected and is worth the wait. Jumeirah Islands for example, villa prices are slightly lower in the clusters close to JLT and Jumeirah Heights - due to the construction activity, but when this is complete the prices will be aligned with the rest of the development.

Hope this helps.

[Ines]

Originally Posted by beer51

Hi All

I am thinking of buying a property in Al Marjan Island. Beside La Hoya Bay I've found another development by a company called Pure real Estate Consultancy, project is called Blu Mirage. I don't know much about the company and would be grateful if anybody has any info. Also is RAK and particularlry Al Marjan Island is a good place to invest in terms of rentals and capital appreciation. Any opinions will be much appreciate it. Thanks in advance.

With regards to Pure Real Estate Consultancy's track record;

Pure have been in the UAE property market for over 3 years, mainly as land brokers. They actually own the land in the centre part of Al Marjan Island as well as 16 plots in Jumeirah Village South. Up to now they have bought land and resold on, however they have now changed their business strategy to actually develop high quality buildings themselves.

With Blu Mirage, investor's money will be held in an Escrow account and can ONLY be used for the building. The money is not held until completion, it is released in stages to the developer. e.g An amount is released for the foundations of the building, this work is inspected by the Escrow account manager and signed off. Only when the sign off is completed will the next amount be released. This Escrow account is also included as a pre-requisite in the contract with RAKIA/RAKEEN so will be monitored by them.

There is no penalty clause in the contract for late development, however having the Escrow account in place will greatly increase the probability of completion on time. We all know that the reason behind most delayed developments is that developers have used client's money to buy more land rather than start building; The Escrow account will ensure that this is not possible.

For Blu Mirage, two of the six towers in the complex will be 5*hotels managed by an internationally recognised hotel chain, and THEY will insist on compensation clauses in their contracts for delayed delivery. As all six towers will be built together this will further ensure that the residential buildings will also be built on time. The secondary benefit of having a 5* hotel in the same building complex in that it will increase the value of the apartments.

You can also contact RAKEEN directly who will verify the developer's credentials: http://www.rakeen.com/index.html

[Andy-M]

Thanks for the heads up, this sounds encouraging

[Andy-M]

looking into the developer side of things, what reputation does Dubai Civil Engineering have? I have information that they will be carrying out work on island 4.

[Ines]

Originally Posted by Andy-M

looking into the developer side of things, what reputation does Dubai Civil Engineering have? I have information that they will be carrying out work on island 4.

http://www.emporis.com/en/cd/cm/?id=...edarabemirates

This will show you a list of projects this company has worked on.

[Morrismarina]

Many thanks for the informative post Ines.

However you say of Blu Mirage " This Escrow account is also included as a pre-requisite in the contract with RAKIA/RAKEEN so will be monitored by them. "

In an earlier post you've said LHB does not have an escrow account. Surely this would been a pre-requisite for LHB as well ??

[rags]

I understand that the prices in LaHoya bay Residence are likely to go up by at least 5% January 1st week onwards. The delivery dates given as of now are: 1st and second towers: 1Q2009, 3rd in the 2Q2009, 4th and 5th in the 3Q2009 and the rest by end-2009. Studios are still available 3rd tower onwards. They are small though and would, in my opinion, be good only for short-term rentals.

[Morrismarina]

I disagree, my studio is 392 sq ft (net) with a 50 sq ft balcony. So just under 450 sq ft (net) in total. This is acceptable for a studio. I can see that these will rent long term no problem as anybody wanting a studio is more concerned about cheaper rent otherwise they'd go for a 1 bed. Studios of this size rent quite easily long term in Dubai (and the UK for that matter) so I cannot see why it would be any different in RAK.

[rags]

Originally Posted by Morrismarina

I disagree, my studio is 392 sq ft (net) with a 50 sq ft balcony. So just under 450 sq ft (net) in total. This is acceptable for a studio. I can see that these will rent long term no problem as anybody wanting a studio is more concerned about cheaper rent otherwise they'd go for a 1 bed. Studios of this size rent quite easily long term in Dubai (and the UK for that matter) so I cannot see why it would be any different in RAK.

Hi Morrismarina,

Which tower do you own the studion in? I was told that the studios in the first two towers were larger. Is what I was told correct?

What do you think of the development and the progress so far, given that the schedules are way behind the first-announced dates?

Thanks.

[rags]

Originally Posted by Ines

http://www.emporis.com/en/cd/cm/?id=...edarabemirates

This will show you a list of projects this company has worked on.

Hi Ines,

I had asked you (probably in another thread?) for comparison between BM and LHB. Did you see that post? Any comments?

Thanks.

[Morrismarina]

Originally Posted by rags

Hi Morrismarina,

Which tower do you own the studion in? I was told that the studios in the first two towers were larger. Is what I was told correct?

What do you think of the development and the progress so far, given that the schedules are way behind the first-announced dates?

Thanks.

Sorry I really don't know about the other blocks just that I've bought in block E called Starfish.

I don't have any info on the construction progress other than the pics on the La Hoy Bay website. But I will be visiting the site to see for myself in March and so can give you an update in about 3 months time.

[rags]

Originally Posted by Morrismarina

Sorry I really don't know about the other blocks just that I've bought in block E called Starfish.

I don't have any info on the construction progress other than the pics on the La Hoy Bay website. But I will be visiting the site to see for myself in March and so can give you an update in about 3 months time.

Thanks.

[ps500]

Originally Posted by rags

Hi Morrismarina,

I was told that the studios in the first two towers were larger. Is what I was told correct?

Thanks.

Rags

The studios in the first three units were 538sq ft plus balcony

PS500

[dubai_nomad]

Originally Posted by Ines

With regards to Pure Real Estate Consultancy's track record;

Pure have been in the UAE property market for over 3 years, mainly as land brokers. They actually own the land in the centre part of Al Marjan Island as well as 16 plots in Jumeirah Village South. Up to now they have bought land and resold on, however they have now changed their business strategy to actually develop high quality buildings themselves.

With Blu Mirage, investor's money will be held in an Escrow account and can ONLY be used for the building. The money is not held until completion, it is released in stages to the developer. e.g An amount is released for the foundations of the building, this work is inspected by the Escrow account manager and signed off. Only when the sign off is completed will the next amount be released. This Escrow account is also included as a pre-requisite in the contract with RAKIA/RAKEEN so will be monitored by them.

There is no penalty clause in the contract for late development, however having the Escrow account in place will greatly increase the probability of completion on time. We all know that the reason behind most delayed developments is that developers have used client's money to buy more land rather than start building; The Escrow account will ensure that this is not possible.

For Blu Mirage, two of the six towers in the complex will be 5*hotels managed by an internationally recognised hotel chain, and THEY will insist on compensation clauses in their contracts for delayed delivery. As all six towers will be built together this will further ensure that the residential buildings will also be built on time. The secondary benefit of having a 5* hotel in the same building complex in that it will increase the value of the apartments.

You can also contact RAKEEN directly who will verify the developer's credentials: http://www.rakeen.com/index.html

Do Pure Real Estate Consultancy have a website?

[rags]

Originally Posted by ps500

Rags

The studios in the first three units were 538sq ft plus balcony

PS500

Thanks.

[Morrismarina]

Originally Posted by ps500

Rags

The studios in the first three units were 538sq ft plus balcony

PS500

You need to be careful here, the Khoie website does say that studios are from 50 sq m (538 sq ft) but the floorplans show that the measurements are "gross built-up area" so this dimensions would be approximately 20% more than net figures.

So a 538 sq ft studio would be say 430 sq ft on a net basis. My studio is 392 sq ft net so not a massive difference......about 9% smaller.