Emaar is a multinational real estate development company that has operations in several countries, including Pakistan. In Pakistan, Emaar had launched two major projects, the Crescent Bay in Karachi and the Canyon Views in Islamabad. While the Crescent Bay project was a success, the Canyon Views project failed to meet the expectations of investors, which resulted in a loss of confidence in the company.
There were several reasons why Emaar failed in Islamabad:
Delayed Project Delivery:
The Canyon Views project was launched in 2005 and was supposed to be completed by 2009. However, due to various reasons, including litigation issues and lack of funds, the project was delayed for several years. This resulted in a loss of trust among investors, who had invested their money with the expectation of timely delivery.
There were reports of quality issues with the construction of the Canyon Views project. This included problems with the structural integrity of the buildings, as well as issues with the finishing and fittings.
There were allegations of mismanagement and financial irregularities on the part of the Emaar management in Pakistan. This resulted in a loss of trust and confidence among investors, who started to withdraw their investments.
Lack of Transparency:
There were reports of a lack of transparency in the operations of Emaar in Pakistan. This included issues with the allocation of plots, delays in the issuance of possession letters, and lack of clarity on the status of the project.
The political instability in Pakistan, especially during the period of 2007-2009, also had a negative impact on the real estate sector. This resulted in a slowdown in the demand for real estate, which further compounded the problems faced by Emaar.
In conclusion, Emaar failed in Islamabad due to a combination of factors, including delayed project delivery, quality issues, mismanagement, lack of transparency, and political instability. These factors resulted in a loss of trust and confidence among investors, which ultimately led to the failure of the project.