CAIRO: Emaar Egypt confirmed that the pricing structure of the Marassi residential resort continues to be based on original contract, despite recent allegations of elevating prices to unreasonable highs. "We are currently streamlining all our initial reservations, and the pricing follows the norms stipulated in the original booking form. Only when the customer wants a premium location or a larger size of plot, there will obviously be a new [pricing scheme] that will [still] be competitive compared to current market rates, explained Mohamed El Moshneb, senior director of development at Emaar International. "If a customer opts for a refund of the booking payment, based on conditions of the booking form, the company will do so. El Moshneb's comments came after news that the company abruptly raised prices on the project to new highs ranging between 75 percent and 90 percent, in breach of contracts signed between the company and potential customers in October 2006. Claims spread that several customers were made to pay between 10-15 percent as down payment on units without knowing the final prices. Customers later accused Emaar Egypt of raising prices on units overlooking the sea from the previously named price of $2 million to $3.5 million. Rumors had it that several customers intended to file lawsuits against Emaar for, reportedly, violating contracts. In response, company officials called those allegations unfounded and reiterated that Emaar Egypt would follow the same pricing structure based on original booking forms signed by investors. According to the company, price changes are applicable only when customers prefer to swap to premium locations, a larger plot of land, or homes in specific proximity to the beachfront, golf course, lagoon, gardens, community centers, and the beach club. Spread over seven km of open beachfront with the total area of 6.25 million sq. meters (1.5 feddans), Emaar Egypt's Marassi is set to be an upscale community resort along the Sidi Abdel Rahman Bay on the North Cost. The LE 9.92 billion ($1.74 billion) project will feature around seven hotels, villas, chalets, townhouses, and service apartments, along with a golf course, water canals, shopping and bazaar venues, restaurants, healthcare facilities, and a yachting marina. The project is also within close proximity to historic sites in Al Alamein city and offers residents the choice of desert safari, eco-tourism and diving pursuits. Marassi resort is still in its initial phases, however, Emaar Egypt recently announced completion of its master plan with groundwork scheduled to begin in 2008 and the first phase due in mid 2011. "There is strong global investor interest in Marassi, which will redefine the parameters of tourism resort developments in Egypt, boasted Sameh Muhtadi, chief executive officer of Emaar Egypt. "The world's best architects have worked on the master plan with the aim of maximizing the value of all residences within Marassi by offering design and location advantages. Emaar Egypt is the single largest foreign direct investor in Egypt's real estate sector with an investment portfolio of LE 31.67 billion ($5.54 billion) in four mega projects, namely: the LE 12 billion ($2.1 billion) Uptown Cairo residential project on Mokattam Hill; the LE 9.92 billion ($1.74 billion) Marassi resort; the LE 5.75 billion ($1 billion) residential community located at the fifth district in New Cairo City; and the LE 4 billion ($700 million) Cairo Gate - a commercial cum residential development on the Cairo-Alexandria desert road, which is set to feature the country's largest outdoor shopping and entertainment destination.
