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Warsan kicks up dust
02 November 2008
Investors complain about being 'misguided' over price and location of EmaarEmaar's exclusive residential project
Investors in the Warsan Estate project, one of the latest projects announced by leading property developer EmaarEmaar, are up in arms against the company for being 'misinformed' about the project.
Several investors who approached The Business Weekly said they were taken for granted on several counts. "Firstly, we were told that the project was coming up in the Mushrif Park area, but now we have learnt that the project was originally planned in proximity to the sewage treatment plant.
"Who wants to throw away hard-earned money on a project such as this," fumed Arshad Hussain, business development director, RCI Middle East, who has already booked a unit in the project.
Though TBW tried to get the EmaarEmaar office to respond to investors' complaints, no comment has been forthcoming. We are still awaiting their response to an e-mail sent both to the company offices as well as to its public relations agency.
Hussain said he has already approached company officials who acknowledged the fact that several investors were genuinely peeved with the project's features.
Investors are furious that the price of about Dh2,600 per square foot quoted for the project is far higher than that of any other comparable project.
"There are properties available in much better locations at less than half the price charged on Warsan Estate by EmaarEmaar, which has built a reputation for itself through years of good work. It is painful to see a company with such a high international standing resorting to ways that do not bring about any goodwill," said James Varghese, another investor who claims to have invested five per cent for the booking advance.
EmaarEmaar launched Warsan Estate in June or July this year. "Investors, me included, were misled by EmaarEmaar's propaganda and false marketing. Investors were told that Warsan would be a top-class and up-market development and that townhouses would be built to the highest standards. Up to the time of the launch, they did not once mention the price," Hussain added.
When pointed out that the responsibility of enquiring about the location and price remains with the investors, one of them explained that they had very little time in which to make a decision. "We were given only a few minutes before being told to put up the money and seal the deal," he added.
There were rumours too that the tokens issued online for the off-plan booking of the project were downloaded and sold at a handsome price as there were ample takers for the project at the time of launch. The bookings were received at the EmaarEmaar sales office and at the office of Hamptons UAE, the official sales agent for the project.
Warsan Estate is a project of townhouses for which the average price could work out to Dh5 million and above. "This is massively overpriced compared with International City which is located just opposite this project," James added.
Hussain said hundreds of emails were pouring into EmaarEmaar's office, asking for an extension of the deadline for payment of the second installment, which is fast approaching. Most of those writing in are however demanding that the company scrap the project itself. "None of the investors want to pay the second instalment of 15 per cent, which is due in January 2009," Hussain told TBW.
However, he is optimistic that EmaarEmaar will take an appropriate decision on the contentious issue and resolve the concerns of hundreds of investors.
Emaar PropertiesEmaar Properties launched Warsan Estate in Dubai as an exclusive residential community on Al Awir Road. The development claims to offer 500 single family town-homes that would appeal to residents who value the privacy of living in a villa in an immaculately laid-out residential community.
By CL Jose
© The Business Weekly 2008
02 November 2008
Investors complain about being 'misguided' over price and location of EmaarEmaar's exclusive residential project
Investors in the Warsan Estate project, one of the latest projects announced by leading property developer EmaarEmaar, are up in arms against the company for being 'misinformed' about the project.
Several investors who approached The Business Weekly said they were taken for granted on several counts. "Firstly, we were told that the project was coming up in the Mushrif Park area, but now we have learnt that the project was originally planned in proximity to the sewage treatment plant.
"Who wants to throw away hard-earned money on a project such as this," fumed Arshad Hussain, business development director, RCI Middle East, who has already booked a unit in the project.
Though TBW tried to get the EmaarEmaar office to respond to investors' complaints, no comment has been forthcoming. We are still awaiting their response to an e-mail sent both to the company offices as well as to its public relations agency.
Hussain said he has already approached company officials who acknowledged the fact that several investors were genuinely peeved with the project's features.
Investors are furious that the price of about Dh2,600 per square foot quoted for the project is far higher than that of any other comparable project.
"There are properties available in much better locations at less than half the price charged on Warsan Estate by EmaarEmaar, which has built a reputation for itself through years of good work. It is painful to see a company with such a high international standing resorting to ways that do not bring about any goodwill," said James Varghese, another investor who claims to have invested five per cent for the booking advance.
EmaarEmaar launched Warsan Estate in June or July this year. "Investors, me included, were misled by EmaarEmaar's propaganda and false marketing. Investors were told that Warsan would be a top-class and up-market development and that townhouses would be built to the highest standards. Up to the time of the launch, they did not once mention the price," Hussain added.
When pointed out that the responsibility of enquiring about the location and price remains with the investors, one of them explained that they had very little time in which to make a decision. "We were given only a few minutes before being told to put up the money and seal the deal," he added.
There were rumours too that the tokens issued online for the off-plan booking of the project were downloaded and sold at a handsome price as there were ample takers for the project at the time of launch. The bookings were received at the EmaarEmaar sales office and at the office of Hamptons UAE, the official sales agent for the project.
Warsan Estate is a project of townhouses for which the average price could work out to Dh5 million and above. "This is massively overpriced compared with International City which is located just opposite this project," James added.
Hussain said hundreds of emails were pouring into EmaarEmaar's office, asking for an extension of the deadline for payment of the second installment, which is fast approaching. Most of those writing in are however demanding that the company scrap the project itself. "None of the investors want to pay the second instalment of 15 per cent, which is due in January 2009," Hussain told TBW.
However, he is optimistic that EmaarEmaar will take an appropriate decision on the contentious issue and resolve the concerns of hundreds of investors.
Emaar PropertiesEmaar Properties launched Warsan Estate in Dubai as an exclusive residential community on Al Awir Road. The development claims to offer 500 single family town-homes that would appeal to residents who value the privacy of living in a villa in an immaculately laid-out residential community.
By CL Jose
© The Business Weekly 2008
