Price obfuscation - EMAAR style..

Emaar MGF is the combine which is building the Games village for the Commonwealth Games. And as it turns out these flats are to be sold once the Games are over.

The brochure of Emaar is a minefield and if one is not up to the task of understanding each and every line in that you would end up paying a rate which is scandalous at best!!

Let us take the exact measurements for a 2090 Sft 3 Bedroom apartment or what we call the carpet area from their drawing available online!!

3bhk sq. mtr

store 5.2

wc 2.4

Yard 6.08

kitchen 8.25

bath2 3.8

bed2 8.36

foyer est 4.48

living 20.4

dining 16.4

bath3 4.2

bed3 16.1

bath1 6.25

bed1 15.75

dresser est 5

Total 122.67 OR 1242.65 Sft

So you are being billed for 2090 sft @13250/-sft and getting only 1242.65 sft to live in actually!!

This translates into INR1.65 Cr for the actual area you live in AND

1.13 Cr for the common amenities like swimming pool etc.. (For this price one can build a swimming pool, tennis court, badminton court, table tennis table, etc etc FOR PRIVATE USE)..

Btw the other charges are:

9th floor 900 per sft

temple facing 500 per sft

parking 900000 for two cars

PLC, Regn etc (another 5-7% of TOTAL ABOVE COST)

So taking all of the above into consideration it comes to a princely 24000/- sft plus Regn of 6% so one can say a round sum of 25000/- sft ALL INCLUSIVE - so now would be buying ?

Going by the practices followed by emaar in the gulf – it would not be surprising if you are bound to them for life!! In other words, you cant extend a telephone/ electrical line – because there would be some circuit lock which will disable the system if there is any tampering etc.

A pump would be activated every time you open the tap to give you water “at a steady pace” - increasing both your water consumption and electricity cost!!

All the deceptive marketing tactics are being employed:

1. When this was launched (2-3yrs back) – it was shown as a success – we now find out that practically the entire place is up for grabs!!

2. The rate is specified in per sft basis, whereas the areas marked in the floor plan are in metre sq.

3. There is no clarity on the various “other charges” and the “maintainance charges” going forward.

4. There is no fixed procedure for the creation of a RWA and the conduct of initial elections of the same to hand over the common facility management to the owners from the developer.

If ever there was a crying need for a regulator it is in this space!! Caveat Emptor..