Emaar Fountain Views launch branded 'disgraceful'on Jan 27, 2013
Emaar’s sales launch of its Fountain Views project left many prospective clients frustrated at the process used for pre-sales of apartments, according to Big News Network.
After a similar fiasco last September when a project was launched and hundreds camped outside for three days to get set, the company this time announced the need to pre-register. One prominent Dubai real estate agent described what followed as ‘disgraceful’.
After the estimated 12,000 applicants were vetted, those that had been successful were allocated tokens, but were left unaware of the fact that the developer had issued red, blue and yellow tokens.
As registrants arrived at 8am on the day they found long queues stretching right around the outside of the Emaar complex, and while the red queue moved swiftly, hundreds more were left penned in remaining lines for hours without any communication from Emaar as to what was happening.
At about 2.40pm, a crowd marshal got up on her feet announced that the red tokens were up to number 155 and that likelihood of blues and yellows getting a viewing was rapidly diminishing.
Angry scenes followed as frustrated buyers left disgusted, not at missing out, but at the way in which sales were handled. BNN said that: “Scores were heard muttering, and others making their feelings known more loudly, indicating they would not take part in an Emaar property launch again.”
BNN said a further announcement was made at 4pm when the red tokens reached 175 that all apartments had been sold. Agents had been told Emaar was restricting sales of the apartments to one per client, but the developer has not made it clear as to exactly how many of the 280 apartments were sold.
CW was unable to get through to Emaar's Dubai sales centre for comment, but in a press release issued by the firm, its managing director Ahmad Al Matooshi praised the "overwhelming investor response" to the scheme.
He said the popularity of the launch was "another strong testament to the robust property demand in Dubai… [and] not only appealed to residents in the city but also to investors from around the world."
Under rules set by the Real Estate Regulatory Authority, payment for off-plan properties should be commensurate to the construction milestones achieved on a project. However, Emaar had requested a 15% upfront payment, followed by a 10% payment in June, and then a 15% installment when construction is 10% completed.
Investors could therefore have forked out 40% of the cost of their apartments by the time that Emaar completes 10% of construction.
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