Warsan kicks up dust |
|
Network this!
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
Loading ...-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
from issuers in both public and private sectors. It is not an e-tendering service and is entirely FREE.
As an Issuer, you can benefit from posting an unlimited number of Tender
Notices for FREE and reaching out to an online community of bidders.
The service also offers you a tool to track the interest of bidders to your
tenders 'live' online.
| Real Estate Tenders | Due Date |
Stories
Companies
| Company Name | Country | Industry |
| Consolidated Contractors Company | Overseas | Construction and Design |
| Saudi Binladin Group | Saudi Arabia | Construction and Design |
| Saudi Telecom | Saudi Arabia | Telecommunications Services |
| Saudi Electricity Company | Saudi Arabia | Electric Utilities |
| Emirates Aluminium Company | UAE | Metal Production |
| Sharjah Electricity and Water Authority | UAE | Electric Utilities |
| Emirates Telecommunications Corporation | UAE | Telecommunications Services |
| Al Azizia Panda United Company | Saudi Arabia | General Retailers |
| Commercial International Bank (Egypt) | Egypt | Banking |
| Dodsal Engineering and Construction | UAE | Construction and Design |
Projects
| Project Name | Country | Sector |
| Takreer - Ruwais Refinery Expansion | UAE | Oil and Gas |
| Al Futtaim Carillion - Marina Hotel (Yas Island) | UAE | Real Estate |
| Emirates Aluminium (EMAL) - Smelter Complex - Phase 1 | UAE | Industry |
| Abu Dhabi DOT - Abu Dhabi Metro | UAE | Infrastructure |
| ENEC - Nuclear Power Plant | UAE | Power and Water |
| SATORP - Jubail Refinery and Petrochemical Complex | Saudi Arabia | Oil and Gas |
| Dubai RTA - Dubai Metro | UAE | Infrastructure |
| Al Safwa - Jeddah Cement Plant | Saudi Arabia | Industry |
| Qatar Bahrain Causeway Foundation - Qatar Bahrain Causeway | Bahrain | Infrastructure |
| Qatar Bahrain Causeway Foundation - Qatar Bahrain Causeway | Qatar | Infrastructure |
Could you pls contact me as I am away and stuck in Canada and cannot be there in person
Pls let me know if I can help in anyway (signature of petition) or claim against Emaar ... one more always helps
Pls also let me know of the latest situation
Thnx.
my email is : aafasihiATgmailDOTcom [Report Abuse | Email to a Friend | Reply to this Comment]
Warsan investors, we are almost out of time. I have received a final 30 days notice of default by Emaar, who incomprehensibly seem to be assuming that people will continue paying into this project that nobody wants or can afford.
Go to Dubai Property Investors forum to see what other investors are trying to do:
http://groups.google.com/group/dubai-property-investors?hl=en
(dubai-property-investors@googlegroups.com) [Report Abuse | Email to a Friend | Reply to this Comment]
WARSAN ESTATE on HOLD
In todays Khaleej Times (Feb 3rd) business section Page 28 - there is list of projects that have been cancelled or are on hold. The online version of the artilce is entitled PROPERY PRICES UNDER PRESSURE : ANALYSTS - but, the online version does not have the list... (I am not sure if a Jpeg scanned version of the article/list can be posted...sorry..)
The cancelled projects that are:
Nad El Sheba Racecourse - Meydan LLC
Falcon City of Wonders (Dubailand) - ETA STAR
Dubai Exhibition City
Desert Gate Hotels and Towers - Bawadi LLC
Pilkington Emirates - Float Glass Factory - Pilkington Emirates
Water's Edge (Business Bay) - Damac
Dolphin Towers - Damac
Nadra Tower (Business Bay) - tamweel
There are another 50 Towers listed as 'On Hold'
including :
Jumeriah Village : Green Park -Damac
Nadra Tower (Business Bay) - Tamweel
West End Tower I & II (Jum.Vllge South) Al Rashid Investments
Image Residences - Al Fara's Property
Sienna Square - Cirrus Development
Rortating Tower (Jebel Ali) Merjen Group
Palm Trump Hotel & Tower - Nakheel Resorts & the Trump Org
Asia-Asia Hotel - Tatweer
Anara - Tameer Holding
Esplanade - Sama Dubai
Business Bay: Burjside Blvd - Damac
Warsan Estate - Emaar
Universal City - Dubailand
AL Burj Tower - Nahkeel
AL Salam City - Tameer Holding
Bristol Towers - Deyaar
any many more........... (on hold) [Report Abuse | Email to a Friend | Reply to this Comment]
Whats the latest status on Warsan ?
Pls provide us with the new information that any one you might have.
Emaar should refund all our money ! [Report Abuse | Email to a Friend | Reply to this Comment]
Guys the only way is to file a collective law suit against Emaar on the grounds that Emaar did not start construction and has no intention of executing the project but would rather keep our money anyways. In a worst case scenario we should get 70 % of our money back as per Law No. 13. The point is to gather as much investors in warsan as possible. If you want to file legal action please provide your name and contact number and I will call you to arrange for a meeting. The key is to hire a big legal firm and to publicise the case here in Dubai and internationally. [Report Abuse | Email to a Friend | Reply to this Comment]
dear all......very interesting debate. what about mushrif heights? I bought a property there and until now there is no sign of construction in the location that they described! does anyone know whether this project is going ahead or? Emaar are now pressuring me to pay the Dec payment and are refusing full deferal.
appreciate your help or comments on this! [Report Abuse | Email to a Friend | Reply to this Comment]
what happening did you meet, I bought a villa with Emaar in Warsan project and they keep sending me notification for payment, please let raise our voice to one who is listening ot us
souad [Report Abuse | Email to a Friend | Reply to this Comment]
Do you have any updates ?
Pls let us know [Report Abuse | Email to a Friend | Reply to this Comment]
Hi Could all you guys you contact me as soon as possible?
Nathalie Gillet
Business reporter
Property
nathalie.gillet@ecomondearabe.fr [Report Abuse | Email to a Friend | Reply to this Comment]
This is the link I posted a few days ago about the extension ...
http://www.arabianbusiness.com/537424-emaar-extends-mortgage-repayment-deadlines
1st we were told that they are cancelling the Project and providing refunds ... Then they say that they would offer extensions ... now you are telling us that none of thos are true !
Did you follow up and are you sure that they don't offer any extensions ?
Pls let me know since I am out of the country . [Report Abuse | Email to a Friend | Reply to this Comment]
Al Attar collected 50% of money for Vancouver, Toronto and Global Point towers at International City. They colected this in 2004 and 2005. The tower supposed to be ready in 2007 November.
No refunds, no action, no escrow accounts.
Lokhandwala collected 60% of the money for their Eden Garden at sports City in 2006. Not started the construction.
Schon properties collected 60% payment for Dubai Loagoon in 2007. Not started construction.
Aspire collected 20% payment in 2006 for Jihan at JVS in 2006. Not started constrction.
There are many more. If any oen have such experiences, please write here.
I do not know what action RERA takes here to protect the investors. [Report Abuse | Email to a Friend | Reply to this Comment]
I was shocked to read my email from Emaar just now. They rejected my request for an extension! How can this be after reading all over the internet that they were relaxing payment schedules? Emaar Customer Care also said that if I should default on my payments, that they were under no obligation to refund 70% of the monies I paid already (as stipulated in Law 13). So don't believe what's in the newspapers, Emaar is not being ethical in these times of financial crisis. They are not providing options for extensions to everyone, and they are not intending to refund 70% of your money if you default. This is not right. What can we do? I thought Emaar was a reputable company. Not so. [Report Abuse | Email to a Friend | Reply to this Comment]
Are we still meeting tonight at the Metropolitan Hotel to discuss the Warsan situation ? [Report Abuse | Email to a Friend | Reply to this Comment]
I suggest we all should meet up to decide what step to take next.
A lot of money is at stake and we need to act as One.
Lets meet up at Metropolitan Hotel ( on shk Zayed rd next to DNATA and Emirates ) on 17th Nov at 7pm.
Lets meet up in the lobby.
Pls pass this info to all other Warsan investors.
Pls reply to this note- if you are attending [Report Abuse | Email to a Friend | Reply to this Comment]
any one who pays the next installment ( in 1 month time or 1 year ) for Warsan will be the joke of the town. This project is doomed and paying any money towards it will be like paying premium price to visit a toilet. [Report Abuse | Email to a Friend | Reply to this Comment]
Emaar has announced on sunday that they will give and extension on all next payments due end of the month or december. We need to get a confirmation from them. I am not in Dubai and am presently in Canada. I will send u the link and a copy of the message. Pls follow it up and send me a feedback.
Thanks:
http://www.arabianbusiness.com/537424-emaar-extends-mortgage-repayment-deadlines
Message is:
Emaar extends mortgage repayment deadlines
by John IrishThis email address is being protected from spam bots, you need Javascript enabled to view it on Friday, 07 November 2008
zoomMORTGAGE MOVE: Emaar Properties has extended the time period for customers to repay mortgages. (Getty Images)Emaar Properties said on Friday it had started extending the time period for customers to repay mortgages as liquidity constraints in the local banking sector had made it harder for customers to secure home finance.
Issam Galadari, Emaar Dubai chief executive and managing director of the group's international operations, said the Arab world's largest developer by market value was also planning to launch two projects in Dubai next year worth at least $5 billion each, although it would monitor market conditions.
"The credit crisis has affected everybody ...We have extended the time for them (clients) to pay their money," Galadari said on the sidelines of a World Economic Forum meeting.
Story continues below ?
advertisement
"We introduced this about a week, 10 days ago."
Galadari said Emaar would keep this policy for a "while" until people found it easier to secure funding.
"We have to rely on these (financial) institutions ... they are financing our customers and we have pre-sales," he said.
Galadari said the group was "watching the market", but had yet to cancel or put back any projects.
"There are a lot of projects on the drawing board ... there are two in different areas in Dubai for next year," he said.
"We are working on these, but it will depend on the market." (Reuters)
Print | Email | Discuss this article | [Report Abuse | Email to a Friend | Reply to this Comment]
Emaar is not going to Cancel its Warsan. If the Investors are not going to pay the next 15% payment, every oen will loose their money. Anyway i am not going to pay the next payment unless they relocate Warsan. This is the highly priced Town House Project in Dubai and The sewage smell is a bonus to the inmates. [Report Abuse | Email to a Friend | Reply to this Comment]
Emaar has now officially announced that THEY ARE NOPT CANCELLING THE WARSAN PROJECT. They also warned that they expect us the investors to pay the next installment.
Also-- pls see The National news paper of today. Emaar has put out a statement that all investors were shown the exact map of warsan before they signed the contract. This is news for me as I was never shown any map. Had they shown the exact location- i wouldnt have touched it with a barge pole!
Another great invention by Emaar [Report Abuse | Email to a Friend | Reply to this Comment]
How do you know exactly that the Project is not cancelled ? What about the comment from Standard Charter Bank ?
Is it possible to call Emaar and ask ? I am in West Coast Canada. Can you pls find out and let us all know once and for all ?
If they do cancel, will they give us a full refund + penalties for cancelling and having blocked our money for 4 months ?
Thanks for your help. [Report Abuse | Email to a Friend | Reply to this Comment]
This is a very interesting news as well as a very interesting debate.
However I've got to say that I am actually quite puzzled by the fact that a few people from the comments below cannot actually spell the company name properly.
I'm not an investor myself but I do know that the company name is Emaar and not Emmar. I would expect people actually investing with Emaar to know the proper spelling or at least get it right from the news itself as it is written and highlighted several times.
That actually kinda shows a lack of respect towards the company. In the future don't do a research on a project only (if ever you do some research), try to know the developer as well, starting by its name and how it is spelt. But then, that's just my opinion.
Before you say anything, I don't work for Emaar. [Report Abuse | Email to a Friend | Reply to this Comment]
Emmar is adament, they are not cancelling or redesigning or relocating Warsan. It is official. It shows Emmar is not Investor friendly. Without Investors, how Emmar will perform. [Report Abuse | Email to a Friend | Reply to this Comment]
Emamr is not officially Commented or Confirmed about the cancellation. Banks (StanChart) says that they got a letter from Emmar, not to give loans to their Warsan Project as this project is cancelled. [Report Abuse | Email to a Friend | Reply to this Comment]
Is this a confirmation or a rumor ? I am not in Dubai and have a hard time keeping track of things. Thanks for your reply in advance. [Report Abuse | Email to a Friend | Reply to this Comment]
Mashallah !
is this now confirmed. Has Emaar come out officially and cancelled this doomed project ?
Also-- we must make sure that Emaar doesnt charge us any money to cancel- we must get full refund of 5% [Report Abuse | Email to a Friend | Reply to this Comment]
Well, Emmar Cancelled Warsan Project.
Thanks to Emmar to protect teh interests of the Investors. Also thanks to CL, The Business Weekly, Zawya and those who are commented positively.
Good time to celebrate.
According to Emamr, the investor can transfer your money to any of their other projects. [Report Abuse | Email to a Friend | Reply to this Comment]
Can you belive this-- Emaar has taken Zawya article on Warsan off the website--on Google they have pushed back to page 3....where no one will be able to see.
Emaar has obviously seen this uproar on Warsan as an International embarassment...
By taking off the air do they think that the world will not realise this humiliation of Emaar.
This is an international news.... [Report Abuse | Email to a Friend | Reply to this Comment]
In Emaar's website, Warsan Estate Location is given as close proximity to Emirates road near Mushrif Park and enjoy the splendour of a development situated in one of the most exciting areas in Dubai.Residents cannot enjoy the splendour near sewage treatment plant and the project should be cancelled immediately.
International city was already established in that area and no where nearby/ opp to int'l city is mentioned.
If the exact location is clearly mentioned, people will inspect the site before investing. Because of the reputation of Emaar , I have also bought a townhouse . Now i am not in a position to pay the second instalment.
Emaar should cancel the project at the earliest and refund the 5% which we have paid . [Report Abuse | Email to a Friend | Reply to this Comment]
Sara- your points are well said-- All your points are correct and valid-- in nut shell- Emaar ripped us off !
just one point i Dont agree - we dont want any payment plan in any condition- WE JUST WANT EMAAR TO CANCEL THIS CRAP AND MISLEADING PROJECT.
In 6 months or 1 year-- no one still will buy a town house from us located next to a gutter at AED5m. [Report Abuse | Email to a Friend | Reply to this Comment]
This is our compliant letter to EMAAR
To Emaar
Custoemr Care Unit
Dear Concerned
I purchased a villa in Warsan based on the Emaars good reputation of location, quality and delivery, however I currently regret such decision due to Warsan’s horrible location beside the sewage treatment, I’m an investor and had purchased a villa in Wasan with a view of selling it in the re-sale market, however due to the bad reputation of the WARSAN no one is willing to even think about it. Here are some of my concern about the project.
• Why Emaar had sold us a villa which costs around 1 million at 5 million dirham each?
• Warsan project had the worst marketing plan by EMAAR, even some of your staff are not aware of the Warsan project, and those who know the project, point out our mistake in purchasing this property. Which phase was launched when is another issue !!??
• Location of Warsan is the worst possible location in Dubai, it is not possible to re-sell these villas in the secondary market, due to bad name …
• As an investor I’m not comfortable to pump anymore funds into this project as I believe this entire project is a failure.
• In current financial condition when all banks and finance companies had limited their mortgage exposure, and on the other hand the inability to resell our villas in secondary market , had placed us in a very difficult condition and I am unable to pay the next 2 coming installments till further 6 months.
• Think of Emaar’s corporate social responsibility … where is it ???
Considering above issues and many more which are these days appearing in media and public I want to request Emaar to either refund our 5% deposit or give us a 6 months to 1 year payment extension , hoping the conditions will get better.
We as investors expect your corporation and understating of current market situation and a reasonable solution for this matter.
Best regards [Report Abuse | Email to a Friend | Reply to this Comment]
really.... i am not aware of this till today [Report Abuse | Email to a Friend | Reply to this Comment]
Fellow Warsan Investors- I have just heard that Emaar has cancelled the Warsan Project. This is due to the uproar of the Warsan investors who were cheated. This was the only logical option available to Emaar. A lot of investor's trust has been broken.
Thanks to The Business Weekly and Zawya- Emaar has done the honourable thing and hopefully gone some way in retaining its lost reputation. [Report [Report Abuse | Email to a Friend | Reply to this Comment]
Thank you very much Zawya and Yadullah Ijtehadi, Managing Editor, ABQ Zawya for providing us a forum discuss our issues.
Well, we salute Emmar for building Dubai with outstanding projects including Arabian Ranches, Burj Dubai, Dubai Marina, Emmar Business parks, Gold & Diamond Park etc...
But what we found is warsan, their Townhouses near the Sewage Plant next to International City is a bad project. It willSo Emmar is sinking and stinking with Warsan.
I Invite all the Investors and Agents, please contribute to this forum. There are many issues, complains, grievances for Investors as well as Agents, Developers, Brokers as well as Freelancers.
Please go to the forum via the link below:
http://blogs.zawya.com/content/Getting%20Real%20About%20Real%20Estate [Report Abuse | Email to a Friend | Reply to this Comment]
you are wrong buddy- Emaar told everyone the wrong facts---they claimed the project was near mushrif park---its actually no where near mushrif pk---its next to sweage plant which Emaar very convinently omitted from fact sheet.
re price--you are wrong again- No price was published before hand. investors were given no more than 2 min to sign on dotted line--we were all fooled by the name of Emaar.
so we are all acting matureliy and logically- by joining hands against Emaar. [Report Abuse | Email to a Friend | Reply to this Comment]
Mr, E F E F, E F,
I think you are working with Emmar, and I think you took even bribe too. Otherwise, you could have even mentioend your real number. It is not coz of the turmoil, the price of warsan or location Emmar decided. It is coz of the Emmar's sales policy, this fiasco happened. You Emmar guys will inform us to buy, initially the sales persons informed us that this warsan villa is located near Mushrif park, then they told us the price range is around 1300. And asked us to pay 3% premium to get the token as well as the unit. When we were standing in the queue, coz you people were paid by us, we were asked to coem in to the sales room, there you shows us 3-4 units and price. You gave us 5 minutes time to end the deal. In that dilemma, coz we waited for hours, we signed the deal.
Dear Emmar Employee, Do you think, Emmar is transparent, published the price or location before the launch. If you were done this, I am sure, no one should have bought a single unit.
So never blame we Investors after signing in fake ID. It si coz of our Investments, you are are living. [Report Abuse | Email to a Friend | Reply to this Comment]
If I am current, these people are the same who were rushing and standing in lines to get the best token number. If one project doesnt do well for a developer, doesnt mean that the developer is at fault.
None of the sales staff, and neither did EMAAR itself force ANYONE TO BUY ANY PROPERTY. It was us, you and me investors who stayed up and picked up units. Now if there is a global turmoil or the market is slow doesnt mean EMAAR is at fault.
Everyone was AWARE of the location and the price and the terms, so i suggest that everyone act maturely and logically in this matter. [Report Abuse | Email to a Friend | Reply to this Comment]
Great job Zawya . you have done a great service to the investors of Emaar and Warsan. This forum will inform our plight to the world. [Report Abuse | Email to a Friend | Reply to this Comment]
Thank You Zawya and Mr Yadullah. Your coverage of this article will be historic- Developers such as Emaar will now have to take notice of investors of poor projects like Warsan and they will have to cancel the project and return hard earned money of investors. This news coverage by Zawya and TBW is now read in countries such as UK and India. Emaar's reputation is at stake- Once again- Great Job and big Thanks [Report Abuse | Email to a Friend | Reply to this Comment]
Hi Tina,
Please look this link Please go to the forum via the link below:
http://blogs.zawya.com/content/Getting%20Real%20About%20Real%20Estate
Also start contributing. [Report Abuse | Email to a Friend | Reply to this Comment]
Thank you very much Zawya and Yadullah Ijtehadi, Managing Editor, ABQ Zawya for providing us a forum discuss our issues. I Invite all the Investors and Agents, please contribute to this forum. There are many issues, complains, grievances for Investors as well as Agents, Developers, Brokers as well as Freelancers.
Please go to the forum via the link below:
http://blogs.zawya.com/content/Getting%20Real%20About%20Real%20Estate [Report Abuse | Email to a Friend | Reply to this Comment]
Dear James and Charles,
We have now started a 'Listening Post' forum that allows you to share your experiences regarding regional real estate and general business issues.
Please go to the forum via the link below:
http://blogs.zawya.com/content/Getting%20Real%20About%20Real%20Estate
You can also suggest new discussion threads to us via this forum, which is set up especially for our audience.
So keep writing and listening! [Report Abuse | Email to a Friend | Reply to this Comment]
Excellent idea. James- i suggest you to start the initiative. Can you kindly set this forum up on line. I am sure the site will be swamped with investors who have suffered like Warsan.
We need to do this soon as I have heard that the Govt is about to change law 13 in the favour of developers. [Report Abuse | Email to a Friend | Reply to this Comment]
Can we make this as a discussion forum related to Properties. We really need soem forum for discussion. Every one should contribute seriously. Otherwise we can ask Zawya to open a forum for us. Healthy criticism and real facts and our own experiences.
We can all invite all our friends to this forum.
There are many developers, they are not even started construction which they took money in 2005. We can identify developers and brokers through this forum. [Report Abuse | Email to a Friend | Reply to this Comment]
Haneef- you are very right- Staff at Emaar and Hamptons were charging money to investors on the day of the launch ie- blatant bribe.
At Hamptons- there were investors who were not even in the queue and had no tokens, but they were taken first by Hamptons staff bec they had taken money from these investors-- I find this Emaar's double standard on the ethic of the business disgusting [Report Abuse | Email to a Friend | Reply to this Comment]
my friend this all well and good but what about the fact that Emaar mis lead all of the Warsan investors. they claimed the project was next to Mushrif pk. they forgot to tell you not to open the windows of these high class townhouses as you are next to a gutter. and waht about the price- aed2800 per sqft opposite international city. i am sure we all would not have touched with a barge pole had they told us of the excat location.
Dont have pity on Emaar- their share price reflects the way they run their co's. [Report Abuse | Email to a Friend | Reply to this Comment]
I think, instead of scrapping this project, Emmar can relocate this and change in to Independant Villas instead of Town Houses. In most of the prime locations, the town houses are very cheap, may be half the price of Al Warsan.
Emmar & Nakheel should be more transparent in their sales in the future, please publish the price, floor plans, locations in advance. So that no pressure for the Investors. They should learn from the Private Developers. The private developers never increase the prices on every hour on the launch date.
There are Investors paying 2-3% of the cost as premiums to agents and Emmar staff to get the allocation. [Report Abuse | Email to a Friend | Reply to this Comment]
It is good to see that the people of Dubai are making it aware of some of the problems they are facing with a prestigious developers like EMAAR. I have been a major investor at Emaar for the past few years but have never been let down by them. I have a very optimistic thought regarding Emaar's way to handle its investors and its different project in which the investors are hit by due to the recession. There is not only one project but to name a few there are quite a lot which have been realeased at higher prices, but then again they were also being traded well at the time of the launch days and a few days after that. Due to the continous launches by EMAAR in the past 12 months, the hype for a few projects have been hit badly and investors who were flippers are now stuck in a state where there will either look for help from RERA or may have to loose their money. But as being a victim myself i have been in regular touch with the customer care regarding my issues as i have also invested in few of the doomed projects like WARSAN and some in the downtown area as well, i have been told about the relaxation of the payment plan, also of downgrading to other proeprties, adjustments of funds from one property to another ( isyet to be confirmed), and allowing transfer at any stage. All these points are extremely helpful for the investors and if all of you INVESTORS keep some patience, you may hear better news in the future. Dont forget that EMAAR itslef is also hit badly by the recession all over the world, as the share prices of EMAAR have gone so low but they are stiil willing to help you in some way or the other by changing their policies which they have kept from day one unlike other developers who are not even willing to talk or understand your position. So people please keep cool and let the probelms be handled at a slow pace rather pushing EMAAR to jump to conclusions which meght be either good or bad for investors. [Report Abuse | Email to a Friend | Reply to this Comment]
Well, it is the time to rebuild Dubai. We salute the Investors, coz these Investors and Business community are behind Dubai's growth. People may call them greedy, but without Investors, Dubai can't build. If the Investors are not going to Invest or withdraw from Dubai Real Estate scene do you think, Dubai will grow.
This is the time to rebuild Dubai. Well there are investors got struck in the recession which is happening world over. The Investors are from around the world. Most of the investors and people are affected by recession. So there are many peopele they are not in a position to pay their next instalments, many of them lost their money in stock markets. According to the RERA rule, the investors can get only 70% of the investment due to the cancellation of the project. But if they cancel the deal, or withdraw their investment of 70%, still there is a bleak future for the Dubai Real Estate. If there is no money from the Investors, all the projects will halt. Developers can say excuses, it will affect the growth of Dubai. I found most of the Investors from Europe and US have problems in transfering their hard earned money to Dubai Banks, coz most of the banks are not allowing them to transfer the money due to the recession.
I request the authorities including the Developers, RERA, Banks together take good decisions to support the investors, to finace the projects, change the payment plans. if they are not doing this, I think there will be more skeltons in this beautiful promising City. [Report Abuse | Email to a Friend | Reply to this Comment]
I believe CLs report is authentic and reflects the true picture of these scounders. the only way to improve the market sentiment is to do something big with the Big Fish. I believe EMAAR shuld take some responsibility and also take an initiative to improve investor confidence in the UAE property market. It is time for people to rise up!!! [Report Abuse | Email to a Friend | Reply to this Comment]
Tina - good idea, there are already a few forums etc for people who have had problems regarding property in dubai to talk about their issues and bring some collective action.
One is the Al Salam City project which was put on hold (see www.alsalamcity.biz) there is another one regarding JBR towers, although i cannot remember the address.
You can easily create something - without having to build your own website by using a wiki which you can set up via www.wetpaint.com or you can even do it on google if you set up an account.
If yourself or anybody does create such a forum for people investing in Warsan, do please post the address on here. [Report Abuse | Email to a Friend | Reply to this Comment]
[Report Abuse | Email to a Friend | Reply to this Comment]
Good idea- we must form a movement to enforce our interest. RERA must take notice of how investors will be squeezed out of the market if nothing is done. Can one of us please take a lead.
Can some one pls clarfy Law 13-- incase of any payment default do we get our 70% money back from the developer.
according to RERA law this is written but is this applicable to develoers such as EMAAR and Nakheel who feels they are above the law. [Report Abuse | Email to a Friend | Reply to this Comment]
dear rahman,
i will not stoop to your level of leveling insults. in fact if you were smart enough you would have checked the web site before the launch like i did. The sewerage plant was and probably is there in the corner.
assuming that you are actually smart and did do this, it is clear who likes coffee and who likes the gutters. i chose not to buy and not even used my token to attend.
and i do not work for emaar, if i did i wouldnt give you their negative points.
since we are using this forum for discussion, i had suggested that terms need to be renegotiated.
To All Readers (Only Honourable Ones),
If we get together and form a big group maybe we can pressure Emaar into accepting our demands. Sales our weak now, sentiment is low, they must adapt if they think of the bigger picture.
I suggest the following points to be renegotiated:
1. Land Dept and big developers are separate. Off late there are rumours that land department has ruled what seems to be in favour of investors against properly developers.
The rumour/fact I heard was that some developers have put in conditions of 10% payable as transfer fees to developer. Land Dept didn't allow that and the developer had to accept only 2%.
The other rumour/fact I heard was that one developer intended to support the long-term buyers and refused to allow transfers until a period of one year was over. From my source, Land Dept. refused and made them accept the transfer.
2. All one sided contract clauses must be renegotiated. For example, some developers state that if you don't make installements on time, you forfeit all your past payments!!! Imagine if you are 90% paid up. There are other such ridiculous clauses.
3. All payments must be linked to construction. No more easy free money and delays after delays. If there are delays, penalty clause must apply to developer of 1% a month, same way if the investor delays.
4. Any further suggestions from the forum, please list.
We might lose a little time and have to put in quite some effort, but given the position most people are in, I believe we can succeed. Not because it is only in our interests, but developers will also benefit in the long-run, but might lose out on the short run.
There is always this talk of market needs to mature. It will not mature by itself.
Now we have the opportunity, we the public must enforce change. We the public, must demand equal terms. We the public, must ensure the future is bright by ensuring big developers are flexible.
This is the time, we might never have a better opportunity in our life time.
Suggestions highly recommended. We must act. [Report Abuse | Email to a Friend | Reply to this Comment]
obviously this person is working for Emaar as he needs a reality check....the complaint is not about forming a queue but of Emaar misleading investors about the location of the project. Perhaps this person likes to live next to a gutter. Not every one likes to smell smell of gutter every morning and evening and pay AED2700 per sq ft. I suggest he should wake up and smell the coffee. [Report Abuse | Email to a Friend | Reply to this Comment]
Most people are crying wolf over here. There was a buying frenzy and people had sold tokens. Emaar usually increases prices intra hour during most launches. If they have only 300 properties to sell, it is not uncommon that several more people are registered, to create a line and hype outside.
They never disclose any investor information prior to launch because their sales strategy is to make people line up outside. After hours of waiting, they rely on people's irrational decision making, "If I waited for hours, I might as well not return empty handed." And using this rational people purchase at irrational prices.
For Warsan, serious investors like myself could have gone online to check the masterplan before buying. On the corner the sewerage plant was labelled and shown.
This is a dangerous game by Emaar. Initial buyers are the only ones who are better off as they get the best prices. In the end prices are jacked up so high that demand fades and several properties remain unsold, as was the case with Warsan. People just walked out after the crazy hikes. This time they were not lured into making daft decisions.
Any company looks to maximize shareholder value and from that angle the more money Emaar makes on lauches, the more shareholders benefit. However, this is short-term mentality and will not work in the long run.
Emaar must realise that this has worked in the past. Due to the frenzy contracts are totally one sided on behalf of the developer where if you delay payment by more than a month from the due date they can repossess your property. There are many other such ridiculous clauses buyers like myself have agreed to in the contracts. Emaar must renegotiate all these contracts or they will be doomed during future launches. They must change their sales tactic.
Now what is happening is that people cannot resell their properties the way they have been able to do in the past. This is not Emaar's fault and people coming out to blame Emaar purely have no honour. Were these people complaining when they resold other properties at hefty premiums?
Investor confidence is low and people have become fed-up of waiting in lines and are not going to be fooled anymore. Intra hour price increments only benefit a select few, who often in the past have got a chance to purchase due to their high level connections. In some launches Emaar have been fairer where the general public get to buy first, so there is positive progress.
And people now have the mentality of taking revenge and hatred has developed towards the all big developers just because the market has soured.
GIven the above, even though I am not too fond of the developers, CL's report is very biased and does not give the entire picture.
Of course, no one will disclose their weak points, in sales you only portray positives. It is the customers duty to ask the right questions. Given my bordering towards hatred of big developers, Emaar had the sewerage plant on the internet before launch, this is a fact.
I'm surprised Emaar have not responded to this article which is defamatory and does not paint the true picture. I've been reading CL's articles in the past, and I must say this is not professional journalism. Get all the facts before publishing an article.
What happens if people don't buy at the elevated prices? They remain in stock with Emaar for future launch. In the past, they were successful in selling that stock but now times are changing. [Report Abuse | Email to a Friend | Reply to this Comment]
indeed this article reflects the true sentiments of the investors and end users. this project price should be halved or it should be cancelled to protect emaars reputation and save the real estate market. [Report Abuse | Email to a Friend | Reply to this Comment]
This whole thing about being not transparent on the location is going to leave such a bad taste that I feel like cancelling this villa purchase. [Report Abuse | Email to a Friend | Reply to this Comment]
It is a relief that the media has stood upto customer grievences.The article is the real picture as to what Emaar has done.People still have a lot of confidence in Emaar,but if nothing is done to solve the issue,i am sure the real estate industry will loose its trust in them.I sure hope the Dubai Government and RERA look into this matter and resolve it at the earliest so that investor confidence and interest are safeguarded. [Report Abuse | Email to a Friend | Reply to this Comment]
If the people who bought at such a high price did not make a quick profit, then they should not blame it on Emaar, Remember it was a time when token numbers were getting sold for a premium( Badrah, Maysan, etc).People easily made thousands of Dhs, just by registering online.So If you did not do make a quick buck its not Emaar`s fault.It was really overpriced and the location was not great. It is because of the buying frenzy that Emaar used to increase prices every half an hour during the launch.I guess those days are gone now. [Report Abuse | Email to a Friend | Reply to this Comment]
I lost my confidence in Emaar after seeing how Emaar is decieving investors. Warsan is a project which has Fraud written all over it.
People were mislead from the start. No marketing was done for Warsan, no prices were published before the launch and no exact location of the project was given. Its a gutter project for which Emaar charged premium rate.
Emaar is the solely responsible for crashing the Real Estate market in UAE. No wonder their share prices reflects the way they run their co's. [Report Abuse | Email to a Friend | Reply to this Comment]
This is the one bad project of Emear. I still think that, the launch of Warsan dropped the prices in Dubai real estate and investors lost confidence. I decided not to invest in Emaar anymore, after investing in Warsan. This story is very good and I hope Emaar either reduces Al Warsan price to half or scrap the project. [Report Abuse | Email to a Friend | Reply to this Comment]
I completely agree with this article. its very well written and its completely correct.
Emaar has decieved all of us. They never disclosed the exact location or the price.
This is a project right next to gutter !
They have charged us over the top price for a project which is unsellable.
The government should look into this and make Emaar cancel the project and make them return the money back to the investors. [Report Abuse | Email to a Friend | Reply to this Comment]