relaxing in Dubai

Water Crisis in Palm Jumeirah, residents bath in sea and malls

oceana palm jumeriah

Residents of Oceana, a seven-building complex at Palm Jumeriah have to bath in sea, use shopping malls and other odd spots to relieve themselves.

Water supply was apparently cut off by a pipe burst and the property management firm Asteco allegedly waited for four days to fix the problem, XPRESS reported.

One resident says that apparently Asteco didn’t want to pay another contractor to fix the problem and waited for as long as it took for their existing contracting company to step in.

Rather than fixing the problem quickly, the management offered them a stay into Movenpick Hotel at half the rack rate, which is Dh250 per night, which residents claim is a normal Ramadan rate.

Another resident and his wife used the swimming pool for a quick wash before heading to work.

Asteco Property Management says the work currently being carried out on the lazy river at Oceana was scheduled and residents were informed about it eight weeks ago.

dubai expat life

Foreclosures and Repossessions coming to Dubai

Foreclosure in DubaiForeclosures and repossessions of property are coming to crisis-hit, cash-starved Dubai. According to Arabian Business the Palm Jumeirah has witnessed its first property repossession, resulting in a bank selling an apartment for just AED745 per square foot – nearly 35 percent below the current market rate.

A three bedroom apartment in Al Shala, on the prestigious development, was “taken back” by the owner’s bank last week after he failed to resolve Dhs1.7 million of outstanding debt.

The property was advertised by Networth Real Estate on the website of UAE daily Gulf News, at an asking price of AED1.7 million for a 2,280 square foot three bedroom apartment. When contacted, the agent said it had “gone immediately for cash”.

It is thought to be the first time any bank has taken back a property on the Palm.

Just last week, according to Bloomberg, Barclays, Britain’s second largest bank, has won the first foreclosure orders in Dubai, clearing the way for lenders holding about $16bn of Dubai home loans to take action when borrowers don’t pay.

Barclays said in an e-mailed reply to questions from newswire Bloomberg that it won the foreclosure orders, without providing details of the cases.

Similar properties on the Palm are currently being advertised close to AED1140 per square foot, nearly 35 percent higher than the bank’s selling price.

Provisions for bad loans in the UAE surged 68 percent by to 32 billion dirhams ($8.7 billion) as of November, compared with a year earlier, according to Bloomberg.

It said that Islamic lender Tamweel, the emirate’s biggest mortgage bank, has several of its own foreclosure claims pending and estimates about 3 percent of its mortgages are in default.

“Banks will be more aggressive in pursuing legal action if they see the process is efficient,” said Antoine Yacoub, a banking analyst at Moody’s Investors Service.

“They were trying to avoid the courts and restructure most of their loans, but once they see a precedent has been set, they will be encouraged to push more cases through.”