The Reef Project in Playa Bonita

@pcd2777 Noval is very good about updating unit availability. If you look on the website for your development there will be a link for "Prices". The spreadsheet in that link shows you exactly what is sold (Payment received), reserved (Deposit received) or available (Will have a price next to it).

always have a contract tied to building milestones. that way you are only responsible for the deposit until actual construction is underway. it seems that specific development has permit issues that are delaying construction.

yours is a bigger project, but Noval has 3 even bigger projects (Over 500 condos in a development) that are being built in Bavaro Punta Cana.

@pcd2777  i too speak with Esthefany and agree the communication is better.  she last told us that the environmental permits were cleared and now they are pursuing completion of the tourism permit which falls  after approval of enviromental permit.

I believe like myself some buyers grew concerns and bailed out of contract.  The prices are way higher now.

There's a 3/10/24 YouTube video from ”Invierte en Rd” titled ”Que Paso con the reef, las terrenas,  Samana” where he invites a rep from Noval.

@garciayvette If they are saying the environmental permits have been issued, they should have no problem sharing them with investors.

Thank you all for the information. Harris do you have the link you were reffering to? I believe the units were sold with two months after being offered in January 22. I hace seen all the ssales prices. ALl sold for the asking price. Unless there has been some recent sales from people backing out it should the same price as in March of 2022. Please let me know if anything is different.

Actually I stayed in Bavaro and was not impressed with the beach. I also looked at CapCana before buying into the Reef. Now I would really like to know when this project may be finished.

I believe the environmental permits were the big problem but now that it is resolved it may begin this month.

My understanding is they are aware how far behind they are on this project and intend to put on double shifts as construction begins. I'm trying to get information

@Dave1967 I have requested access to the Facebook group. I am an owner at The Reefs and just had a meeting with them regarding the lack of progress. Would love to know what others are hearing as of today.

I wish I had found this group last year!

@Dave1967 I work in the supply chain here in the states.  For any major delays due to weather, we have to document those weather conditions.  We are contracted to deliver "x" percentage on time, or we are charged back, these fees can reach six figures.  We only can offset these fees by providing documentation of a weather event. Perhaps requesting a monthly report on what days are considered rain delays by Noval. In my contract, I receive .5% interest on payments made each month of delays.  My lawyer said this isn't common, and a positive clause, most builders offer zero reparations.  I do not anticipate River Island to be completed before 2027.  Which is unfortunate, but I can accept that if that were to be communicated.  I'm told River Island is on schedule to deliver Dec 2025.  They are willing to move payment dates once a more accurate timeline is established - one time.

HI, it doesn't seem like anyone within our group has any real understanding of when construction may begin. The only contact I have at Noval, Esthefany, has not been able to provide any information that might give a real start date.

I feel that Noval as a company could do a better job at keeping owners in the loop regarding timeline.

My understanding is the company is not haveing financial difficulities. If anyone is aware of anyting otherwie I would like to know.

I spoke to Esthefany last week. Can you beieve the only response she gave is "soon"  WHat the hell does that mean. SHe was busy and suppose to call me back in the afternoon. Never received a call.

@saptapper

hello there

I am in the same situation

I tried to cancel contract but they want to keep about $30,000 dollar to do so

I wish we could create a whatsapp group of those who have bought The Reef

my number is 347***

united we're stronger

@Dave1967

hello

did you buy at The Reef??!

@planner

hello

did you a buyer of the Reef ?

@claudettefowler91

hello

I am buyer at The Reef

trying to create a whatsapp group for those with the same situation

347 ***

Please stop posting your contact information. It's not permitted. You can communicate by private message

@Gnosted

we have a FB group of investors for the Reef and Silver Beach.  Please join if you haven't already.  Look for Silver Beach, Las Terrenas in Facebook groups.  I will be looking to reach out to all members of the group in the coming week with an action plan 

@Gnosted

Yes a three bedroom oceanfront

@saptapper

Hi!

I just read your comment about the Reef. I would love to chat about that. I did also invest in that project and still nothing. Please, let me know.

Thank you for your time and attention.

@saptapper

Hi!

I have also purchased a Unit at the Reef and as you know almost two years and still..... nothing. I would love to chat privately with you about this.

Please, let me know.

thanks.

@thetraveler1410

Hi!

I did read your comment. I did also purchased a Property at the "lovely" The Reef Project. I would love to chat privately. My patience is gone. Please let me know. Thanks.

@Dave1967

Excellent idea about the Group.

@DRCanada

Hi!

I am in the same situation as you are. I also live in Canada. I would love to chat privately with you.

Please let me know. Thanks.

@saptapper

The zoning resolution for Samana peninsula (Resolucion 06/2011 - Ministerio de Turismo DPP) in Article 24 Unidad Ambiental BONITA permits for the lots on which these projects will be built a density of 30 to 35 bedrooms per hectare of land (depending on the size of the land).

All neighboring projects were built with this density, even before this resolution (i.e. Sublime, Viva, etc.)

Noval is selling a project that is 3x the permitted density. They never had environmental permits and would only receive them through a presidential decree that goes above the zoning resolution.

They pay generous commissions to brokers and host extravagant parties for them, so you will never find anyone NOT wanting to sell you Noval projects.

Even if it is your fault for not performing a proper due dilligence, they cannot sell you a project that doesn't have permits or that they don't own the land for example. I suggest you find a legal advisor and go after them threatening to sue. Go after the broker as well to give back his/her commission.

Noval is a bubble that will eventually burst and damage DR reputation. They have sold thousands of apartments to tourists and fell years behind schedule on all of them. They have all sold out projects yet still have scores of salesmen pushing more projects and third party brokers almost exclusively pushing Noval projects. Some projects have launched in 2019 and are now in 2024 starting construction (Atlantida/River Island). They market themselves as a 20 year old company and the biggest developer in the island, yet there are dozens of companies that have developer more volume and more property value. In those 20 years there is only a handful of finished projects, and they are all relatively small apartment complexes in the Cocotal area in Bavaro.

If you have projects that are sold out then why is construction not starting? If you have sold projects that are not starting, why is the company promoting even more projects? Why push sales so much on sold-out projects, have a portfolio of unfinished/delayed projects, and still launch new projects? Ponzi.

@Info 1059   How many hectares is the plot of land for The Reef project?

@Dave1967

17900 Hectares

    @Dave1967
17900 Hectares
   

    -@alberto7187

1 hectare is 100x100 metres. 17900 hectares would be equal to a surface of 10km by 17,9km.   That is the size of a big city…

@Info1059

It appears as though the size of the property is 188,000 square metres

Therefore this project would meet the zoning for number of bedrooms per hectare as per Resolucion 06/2011- Ministerio de Turismo DPP. 

It appears that you are another of the many who spout inaccurate and untrue statements about this project.  Just be straight and say you dont like the project, that it will ruin the neighbourhood etc. 

Don't make up **** that isn't true to forward your point.  Troll…

@Dave1967

17,9 hectares

what is the facebook link othersare referring to.

I am in close communication with my atorney anbd it seems this leading to a class action lawsuit

Thank you...Peter

@thenelsonpolanco

I have been in close contact with my attorney and it seems a class action lawsuit may be inevitable.

I spoke to Esthefany abput a month ago and she said there was one minister holding thins up. Apparently the Environmental issue is resolved. I asked for the name and contact information for this minister and she never responded.

Do you have the link to the facebook page? Thank you...Peter

@pcd2777

Hola!

He leido con mucho interés este mensaje que habla de Lawyers.  Quisiera comunicarme con ustedes fuera del foro y de forma personal.

@aofcuba

Hello, since you are on the english speaking forum, please write in english.

If you want to communicate in another language feel free to send a private message to the member by clicking on his photo.

Regards

Bhavna

I did write in Spanish just as a reflex. I did not think about.

@Dave1967 Noval has a lot of issues. As a Noval client, I can tell you first hand. First, I own a unit at Oceana and have family that purchased with them at Reserva Real at Cocotal and regretfully in The Reef. Oceana and Reserva Real in Cocotal are Noval projects that started in 2019! Both of these projects are over 2 years late! My delivery date was moved 3-4 times and are now saying it will be ready end of Q3 2024. Over 4 years have passed since I invested. I have 2 kids now in college, and life moves fast. Agents in DR all work for Noval and speak nicely about them simply because they do get higher commissions. You will never see negative comments or posts online because Noval deletes all the comments on their social media threads. Check for yourself if you dont believe me. And similarly, agents will delete them as well. There is a TREMENDOUS OPPORTUNITY COST to my money as is for any investor. That money can be sitting an index fund for the S&P 500 gaining well over 15% returns on avg the past 4 years.

Which brings me to The Reef and Silver Beach in Las Terennas. Las Terrenas has very strict construction guidelines in place. Their current zoning regulations create a lot of challenges for a project the size of The Reef. Specifically the Playa Bonita section of Las Terrenas. Noval simply never received environmental permit approval for The Reef because of the density. They are looking to build over 430 units on the parcel they have. That is massive for that area in comparison to other projects that are next door like Viva and Subline. Obviously, it is in everyone's best interest for Noval do finish, start and complete these projects because the optics look terrible for investment in the DR. However, for Noval to get the approval they need they will undoubtedly need to drastically change their construction and engineering plans which unfortunately means scaling down the project. I know this because it has been communicated several times and other major projects in the area have done so as well. Noval will not deliver anything in LT in 2024. Most people are unaware of the grace period that Noval has in their contracts (usually another 6-8 months). Blu Terrenas which is a much bigger project in Portillo with beach front received their environmental permits for construction in December 2023 and have already started construction. The LT Mayor endorsed this project for whatever reason. Something I am also noticing is that Noval is overvaluing their new pre-construction projects charging sometimes twice the square meter costs in comparison to other competitors. All you have to do is look at the projects they are selling and compare them to their neighbors. How in the world are you selling 2 bedroom units in LT for $USD 650,000??  That's over $4,100 per square meter!! When you can easily find new units with the same amenities selling for $USD2,500 / square meter. Transparency is crucial and I hate to see so many people being deceived in a country I love.

@Dave1967 Noval has a lot of issues. As a Noval client, I can tell you first hand. First, I own a unit at Oceana and have family that purchased with them at Reserva Real at Cocotal and regretfully in The Reef. Oceana and Reserva Real in Cocotal are Noval projects that started in 2019! Both of these projects are over 2 years late! My delivery date was moved 3-4 times and are now saying it will be ready end of Q3 2024. Over 4 years have passed since I invested.

We bought a unit in Oceana when the development was first announced around May/June 2021. We visited Punta Cana late in 2020 to do our retirement home shopping and that development had not even been announced at that time. The expected delivery date on our purchase paperwork was April 2024. We get photo updates from Noval every 4-6 weeks. As of our last update (mid-April), some of the building structures are complete and need windows/doors and interiors. Our last correspondence with them was that they are expecting to start delivery of units late in 2024 (About 8 months later than planned). I work with contractors here in the US and everything construction wise takes longer these days. Their timeline on that development is not too bad at all.

@sgreen3737

I agree with virtually all of the points presented in your post. 

It might be worth mentioning that with the “scamdemic” (pandemic) most likely had a significant impact on the timelines of the projects that were sold in 2019.   Investing in preconstruction projects anywhere is always fraught with delays caused by unforeseen issues, let alone a global pandemic.   Is it really fair to complain about Noval being two years late on projects sold in 2019?

The cost of lost opportunity on your capital invested is a valid point to make, however the value of the unit you invested in has likely appreciated quite nicely since then.  Only you can quantify your true costs in this equation.

With regards to Noval scrubbing negative comments online,  well… who cares?  Is that really an issue?  We all do our best to manage our image….

The Reef project in Las Terrenas has issues.  I agree that it will be scaled back if it even moves forward.  It would not surprise me in the least if the project died and investors money was returned.  If that ever is the case then the cost of lost opportunity on capital is a real issue!  Im pretty sure Noval would prefer to resell that project in today's market as the market value is significantly higher than when they originally sold it, not to mention the cost of materials (and probably labour too) have risen. 

With respect to your mention of 650k condos, well those units at Silver Beach are in a spectacular and irreplaceable beachfront location.   Not at all comparable to the average condo for sale in Las Terrenas.   Not surprisingly only a couple remain, and they too will be snapped up very soon because Silver Beach has reportedly received all permits and approvals and should begin construction in June.

@Dave1967 Hi Dave. I agree with all you say as well. My goal is to help provide more clarity anywhere I can given my experience with Noval. It is not in my best interest to talk negatively about Noval. But I do see a lot of frustration, issues with investors online unable to get proper and clear transparent communication (my family being one of them). And often getting lied to. Waiting 4 - 5+ years for a unit to be delivered is unacceptable to me personally, especially when I see other projects I could have invested into that are finished/completed. Time is money and time I dont get back. Investors with Noval on The Reef and other projects have this impression they will get a unit delivered in 2025/2026. They will be lucky to see a unit delivered by 2028. I only say this because I now have a lot of experience in dealing with construction companies in the DR and my father in law happens to be one of the heads of real estate at BanReservas who has helped me a lot. Also worth noting Noval is a developer and not a construction company. Most do not know this. They outsource all their projects to construction companies and therefore there are implications to this. I recommend everyone to hire a good lawyer before these developers ask you to sign agreements or any amendments which I forsee will happen. That is crucial.

@Harris Levinson Hi harry. Time will tell. I get those same emails and updates as well. Then in those same emails they caution for us not to book travel or accommodations until they provide an actual delivery date. Things in DR are not the same as in the states re Construction. Construction labor is very very very slow. A lot of buildings need another year or so just to complete plumbing / electric. This is the case across all of the island, not just in Punta Cana / LT.

@sgreen3737

yes, there is tremendous frustration of buyers in The Reef project.   They deserve some explanation for the unacceptable circumstances that have unfolded, not to mention interest paid on the sums of money that Noval has held.   

I'm not sure there are any buyers of The Reef that are expecting a unit delivered in 2025 or 2026.  I believe that most understand that they are in a predicament and are just hoping for some resolve to this debacle that doesn't involve getting skinned.

As far a Noval being a developer, not a construction company.  i see no particular issue with this.  They didn't do the architectural drawings, or the site engineering either.  Do they need to do the foundations, block laying and mechanicals?  Best to leave the actual construction to those who specialize in constructing IMHO.

And yeah… if this project ever moves forward it will require contractual amendments which i imagine would be a real shite show.

Just a quick, sympathetic post...although this thread seems to have died, it is CRUCIAL that all new forum members read and heed unfortunate past events, in order to pursue happier futures.

My wife and I visited LT in early 2022, including over one major holiday weekend.

• A note of thanks here to Rocky and Denise for taking us to lunch on the beach and going over many of these topics with us!!  You can trust their advice!!! 

Certainly, LT is an idyllic location on the beach -- but the traffic was horrible to the point that we eliminated LT from consideration for investment.  And the traffic was only going to get worse:

• One project (sorry, don't remember the name) we looked at essentially was at the end of a long alley already filled in with various developments, some still being built.
• Getting out of that alley onto the main drag -- which was next to a very nice Italian restaurant -- was already difficult, time-consuming and even risky (no one wanted to let anyone out of the side alley into the flow of traffic). 
• And they were going to add a couple hundred more units to that traffic load?
• Even if built, those projects were never going to lead to happy owners.
• When we inquired with builders, agents or residents...none could tell us of any city projects coming down the line to improve/quell the traffic situation.   

While there, a RE agent took us around most of the spots for sale.  We quickly became concerned about the sheer number of projects that were on offer.  Indeed, our agent (who shall not be named) warned that based on historical experience, a significant percentage (about 30%) of those projects would never be completed, for one reason or another, and pretty much 100% would take double the estimates to be completed. 

• We appreciated his honesty, which we've found to be rare thing in the DR. 

Now, I realize that many folks LOVE LT...which is certainly a wonderful spot.  If you love it, enjoy it.  It just wasn't our cup of tea. 

I think the most important point in this thread, is that one must be extraordinarily careful about investing in DR real estate, anywhere in the country.  We've looked at a lot of DR real estate, and still haven't found "the" place nice enough to warrant the risks involved.

Now, DR RE has appreciated considerably over the last four years.  Maybe we made a mistake in not buying earlier.  However, it just doesn't matter when/what you bought, if it just isn't going to get built. 

Based on what I've read about Noval in this thread...they're off my list of potential builders.  I just UNsubscribed to their emails.

• Like others, I receive a steady stream of emails about new Noval projects, and boy, do they look great!! 
• But, we're NOT at the financial level where we can afford to invest $60-100k in a project, only to have it never be built.  Even if Noval is completing 9 out of 10 projects perfectly, we can't afford that 1 out of 10 odds that ours would be failure. 
• We've also concluded -- based on Rocky's advice in 2022 -- that it would be better to buy or build a house after we've moved, rented for a year or more, and are ready to oversee the sales and construction processes in person. 

So, we're being patient.  And I would advise everyone to be just as patient when it comes to DR RE. 

• Now, I am NOT saying you shouldn't buy, period.
• Just that you should be extremely sure of the house/apartment, the complex or development and (if involved) the builder. 
• ALL cylinders have to be firing perfectly to make the risks worth it, IMHO.

Best of luck to all,

Jim

ExpatRusher

@ExpatRusher

Hi Jim

I totally get why people want to buy here, its very seductive and sales play it to the max, making us want to buy "or lose this fabulous opportunity".    Well, show me the unit(s) you personally bought?   What is your stake in this development?   What you and others say, is right on.   I am BIASED, I got suckered in Mexico, and so I learned my lesson awhile ago.  I never make the same mistake twice.

I also have the same concerns in Punta Cana as you say in LT, with traffic and lack of infrastructure to be able to support so many new condos.  The main road to many of these places for sale gets severely flooded when it rains and takes a couple days to clear. 

If government really wanted to do this right they would build plans for the next 20-50 years and put the infrastructure in place first, and then give the permits to developers after.   So where does the money come for this infrastructure?    Maybe from the developers who want to build and the utility companies who supply the services.  Build the infrastructure for water, sewage, garbage, power, and only then provide permits to allow pre-construction sales with government protections and guarantees.

That might be a pipe dream but one that would resolve most of the issues going on now.

Karin