Property Investors who have sold and re-sold their properties in Damac Properties Palm Island development can get ready to breathe a sigh of relief as it looks as though their investment will be safe after all. While nothing is officially confirmed yet, ArabianBusiness.com has reported that, “Damac Properties appears poised to formally announce the reversal of its decision to axe the Palm Springs project, according to investors.”

In an article titled Damac u-turn on Palm Springs project, the website reports

Investors said they received calls earlier this week from Damac informing them the Palm Springs project is to be re-instated, according to a statement on the website of a Palm Springs investors group.

The project will be located on the new plot provided by master developer Nakheel, with some possible changes to building plans, the statement says.

Another blog that claims to belong to the Palm Springs Investors Group , in a post on the Palm Springs saga yesterday quoted one UK investor as saying:

“I‘ve had a call from Damac informing me that the Palm Springs project will get the go-ahead now, but due to the re-allocated plot, there may be some changes. Damac told me that they will confirm this in writing within the next 10 days.”

Still, even if things turn out as reported, it remains to be seen what changes will be made and how investors will react to them.

Damac Properties caused uproar amongst property investors when it decided to cancel the Palm Springs development in favour of a new one. Property investors were offered a 6% return on their deposit monies and the opportunity to invest in the new development with a 15% discount.

The problem is that property investment in Dubai is very, very lucrative across the board, with properties gaining value in double figures year on year. Armed with this knowledge - property investors take advantage of the phenomenal growth in capital values by latching on to new developments very quickly to maximize return on investment.

The buying process with a company like Damac Properties is such that after 28 days a property investor will have paid a 20% deposit on their chosen property investment. Within the UAE this means that the property investor can sell their property investment on to another property investor for a premium, and for the ‘switched on’ property investor this may well achieved within days of handing over the 20% deposit.

Although the initial purchaser is not removed from the legal chain that leads to the ultimate buyer, they may well have received all of their deposit money back and more, and still be locked into greater profit on the day of completion. Now you can see why they didn’t jump up and down with excitement when Damac offered them 6% and a bite of their sandwich.

If you are reading this as a non property investor, you probably have a smug smile on your face as your read with delight that these guys nearly got burnt. On the other hand, if you make your living by flipping properties like this, you probably feel very lucky to be off the hook. Clearly Damac Properties would not be obliged to make good the difference between the price they sold a property for and the price an investor re-sold the property for. However, Damac courts investors, who have flocked to Dubai in droves, and so I would say there is a moral obligation if not a legal one, to look out for their interests.

Why did Damac decide to involve itself in any of this? - I don’t know. Has it enhanced its reputation? - No!

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If you’ve dreamt of owning your own property in exotic climes, you can’t get much better than Mauritius, in the Indian Ocean. But it’s only in recent times that the property market here has opened up to foreign buyers and, even now, there are still limited opportunities available.

The Mauritian government first opened up the property market in Mauritius to foreign buyers in 2001, but the move was made with tight restrictions. The local authorities are keen to ensure the island doesn’t get overtaken by growth, which is seen by many as a wise move, so they established what’s known as the Integrated Resort Scheme (IRS). The IRS has allowed about 3,000 luxury properties for foreigners to be built and several of the off-plan developments are now on the Mauritius property market.

As well as limiting the number of properties for foreigners that are built, the Mauritian government has also put a law in place that properties cannot be priced at less than $500,000. Plus there’s a land registration fee that has to paid by buyers and, at $70,000, it’s quite steep.

But if you do have a big budget to play with and are looking to invest in a luxury and rather exclusive part of the world, the developments on offer look highly tempting.

The Banyan Tree Corniche Bay, designed by Foster and Partners’, is situated on the west coast of the island and consists of 115 villas, hotel and spa. Golf is also a key selling point with the development’s Gary Player golf course.

On the south of the island is the Villas Valriche development of 288 two, three and four bedroom detached villas. Again, golf is a prime feature here too, with the 18-hole Golf du Chateau championship course. Elsewhere, on the east coast of Mauritius you’ll find the Anahita Resort. This is being developed by Ciel Investment on an old sugar plantation and will eventually include 300 homes.

Mauritius isn’t the quickest of places to reach if you’re buying a holiday home - it’s a 12 hour flight from the UK - but for an extra special holiday hideaway, or an exclusive investment property, it does have lots to offer.

Technorati Tags: Mauritius Property, Mauritius real estate, real estate, real-estate, real estate news, luxury property, off plan property, off plan, property investment, real estate investment, overseas property