Handover farce: Half-baked homes

Property investors in Remraam, a middle-class development off Dubai Bypass Road, are miffed by the prospect of being handed over a "half-baked" property without the amenities promised. The developers, Dubai Properties Group (DPG), are set to hand over keys to units in around 50 buildings next week, the first two of the four-phase Arabic-style community. Apart from snagging issues, investors fume over the lack of landscaping - the sales brochure promised 85 per cent of greenery, with private gardens to ground floor apartments. Investors who received handover notice in early June said they cannot live in a site that is still "unlivable". "I bought my unit with the hope of living in it with my family. But they are asking us to move into a construction site, which poses a safety risk to families," said Nikeel Idnani, an investor. Some investors, especially bank-financed buyers, tacitly admit they will end up amortising for units that even the best rental income will fail to cover. Sai Manohar, a beverage company sales manager who bought a two-bedroom for Dh1.9 million in November 2008, had been paying Dh9,000 for the last 30 months for interest alone. When his unit is turned over, Manohar's monthly amortisation will shoot up to about Dh14,000 a month, excluding the Dh13.44 per sq ft service charge. "I've signed away my future with this unit," said Manohar. "Now, they are forcing us to take possession when it's not even livable." Mohit, a father of two who bought a one-bedroom unit for Dh1.55 million, must pay Dh12,000 a month in monthly instalment, after paying about Dh8,000 monthly for interest since September 2008. "They are asking us to fulfil our end of the deal," said Mohit, "but they do not honour their part. It's still a construction site and a safety risk." Akash Kanjwani, an Indian business who booked eight units in cash in 2007, said: "Because the promised road access is not there, it will take residents 30 minutes to get to the nearest grocery." A DPG spokesperson said: "DPG is committed to this project which will be delivered in accordance with contractual obligations. However a development of this magnitude obviously takes time to reach its full developmental potential." He added that lack of customer payments has also put added pressure on the project. "We have also offered a series of initiatives in order to help our customers such as family consolidations, price reductions, waiver of late payment fees etc." From / Gulf News