Planners Have Made Fadesa Change Alkudia Plans

[romablade1889]

Just heard from my agent that the planning department have made Fadesa change their plans for Alkudia. Apparently they've been told to reduce the density of the apartments, which should be good news as there'll be fewer apartments (better environment, higher demand, lower supply = higher sell on prices).

Our reservation prices are not affected.

Fadesa may have to redraw all their plans so I guess we won't be getting the AP4 plans for some time yet and I assume the plans you all have for AP1 have to be torn up and replaced!!??

[sabrina]

I hope this means that the apartments may increase in size. I agree that this can only be a good thing. The origional plans were a bit cramped, i hope there will be less blocks in each AP.

[mcneilee]

thats just about it if they plan to mess everything all up agian the people have been verry helpfull as i have pested them alot . but i am starting to think that all of the value has all ready been squeezed out by fadesa they've been to greedy & it is starting to look like a turkey.
i doubt you will see any increase in size
they will propeply make them smaller to keep the amount of apartments
i've just about lost faith in it

[shak]

FOR ALL THOSE HAVING A LONG YAWN. PLEASE READ MY POST IN WHICH I HAD TOLD YOU THAT PLANS WERE NOT APPROVED.

I THINK MORE FUN WILL START NOW. DONT THINK YOU WILL BE GETTING BIGGER APPARTMENTS IF THE NUMBERS ARE REDUCED YOU WILL SEE FURTHER CUTS IN QUALITY TO MAINTAIN MARGINS

[denise]

This story sounds all too familiar. Remind anyone of Playa Vista?

[Colin]

Playa what?

[shak]

THEY HAVE THEIR OWN FORUM.

[Colin]

[CARLYWOO]

They have their own forum????????????????????????????/

Oh dear that jsut about says it all for me!!

Rope anyone?????????????

[Colin]

I think he means the unofficial one. (Don't panic, oh wait, no need to panic, you're buying from developers with a track record)

I'm sure Colin will back me up there.

Yes, it doesn't take to many people to destroy good discussion.

Colin.

[mcneilee]

i called the london office & they did'nt know about this.he could'nt get much info but it does seem to be down to the density. i was deffenetly peedoff yesterday with other information i got .he was suprised that a client knew before him. this is getting a wee bit stressfull for me

[hello]

As far as I have heard Fadesa has been asked to reduce the density by approx 20% throughout the development, this will mean further delays and a shortage of stock as there is already an over demand which will not be helped by a reduction in the pre-release numbers
________
Strawberry cough pictures

[romablade1889]

Don't panic. With my optimist hat on...

Lower density means fewer apartments. Demand stays same, supply decreases. Simple economics theory suggests price increases and our pre-release prices are guaranteed.

Fadesa, like any sensible developer, would have anticipated the planners doing this and so will have included excess numbers of apartments in their original plans. Hands up who manages budgets at work. Do you ever ask for exactly what you need or do you always ask for more knowing it will be reduced by snr mgt?

Lower density = more attractive environment = more saleable property.

Fewer apartments means shorter build time. So although there'll be delays getting the plans adjusted, it should catch up eventually.

Fewer apartments means higher rental prices (supply/demand ratios again).

If the planners had not objected to something I'd be worried they weren't doing their hobs properly. At least we know when the next developer wants to build a sky-scraper hotel next door the planners will be on the ball...

Fewer apartments does note necessarily mean lower revenue for Fadesa. So quality is not necessarily going to be the first sacrifice. Supply/demand remember. Fadesa will be able to command higher prices for the other phases, with build costs being the same. That's how Fadesa should maintain their profit margins. Think of it like this. The build will take upwards of 3 years in many phases. If AP4 and AP1 is of a poor quality, how many of the other APs do you think Fadesa will sell. It's in their interest to ensure our apartments are top notch. Future buyers will be looking at our apartments to see what their's will be like, and they'll be talking to us and our tenants and asking questions.

Final word. Your investing to make money. Making serious amounts of money from an investment means risk and means stress. If it were stress free everyone would do it and then there'd be no profit in it. If you want stress free, get your cash down to the Building Society... Due dilligence is the key!

Hope this cheers you all up a little.

[shak]

Hi Romablade,
I do partially agree with your demand and supply theory but I am afraid its not as simple as you make it. Regarding the future release you will know that once the inertia has gone it will be a flat curve and not the upward as we see at the start of a marketing exercise. wether self created or via agents network.

If there will be a reduction in the number of units e.g 10%, It will not make a serious difference. Once again go down to Marbella and Costa Esuri, I cannot speak for others as I have not seen them, I however do have Spanish friends who have bought from Fadesa in Galicia & Malaga.

Besides as you probebly know there is no shortgage of developments from Agadir to Saadia, Tangiers.Asilah, Casa blanca, and Larache to name a few they will all come on line in 2007/8.

[romablade1889]

Shak,

You're losing me as one of your advocates...

Either Morocco is a seriously under supplied market or every property expert this side of Mars is completely and utterly mad.

I don't have any doubts that Fadsa will sell every single unit on Alkudia, and their next development and their next one... The only risk they have is if the quality of the first few units is poor, which is why I don't think they will be.

If you think that the current number of developments being built now, or being built in the next 5 years will satisfy demand for apartments in Morocco, then I suggest you do more of your due dilligence on the tourism industry and foreign inward investment forecasts for the region...

Secondly, those willing to take the risk of buying off plan are in the minority - hence the healthy resale markets in Spain or anywhere else for that matter. As such, even when Alkudia is only partially finished, there'll be a ready supply of buyers wanting to jump the queue and buy a finished or near finished apartment.

Look, I completely agree with you that buying on Alkudia is risky. I wouldn't be showing any interest if it wasn't because no risk = no serious profit... The apartments might be crap when they're finished, but I'll bet my car with you right now that it will still sell for at least 20% more than I pay for it, within 2 years.