By Saifur Rahman, Business Editor www.gulfnews.com
Dubai: Deyaar Development yesterday said it will deliver five projects in the first quarter of 2011, despite the slowdown in construction activities.
The projects scheduled for delivery include Hamilton Residency, Mayfair Tower, Mayfair Residency, Metropolis offices and Clayton Residency — all located in the Business Bay master development.
“The total sales value for all units is over Dh1.2 billion. Upon the handover of these units, the collection would amount to Dh600 million, equal to 50 per cent of the total sales value of the sold units, which would enhance the liquidity and financial capabilities of the company,” the company said in a statement.
A total of 1,092 residential and commercial units will be delivered in this period including 177 units in Hamilton, 218 units in Mayfair Tower, 213 units in Mayfair Residency, 320 units in Metropolis and 164 units in Clayton Residency.
“As the first developer in the Business Bay master development, Deyaar is pleased to hand over more than 1,000 units in this esteemed neighbourhood over the next four months,” said Saeed Al Qatami, CEO, Deyaar. “Our hallmark during the past two years of market-related challenges has been our sustained focus on developing top investment-grade units that will enrich in value over time.
Direct investment into commercial real estate in Europe, the Middle East and Africa (EMEA) is likely to reach €100 billion (Dh481.76 billion) this year, according to new research from Jones Lang LaSalle. This figure represents an increase of over 40 per cent on volumes recorded for the full year 2009.
Chris Staveley, Director, EMEA Capital Markets at Jones Lang LaSalle said, “We expect to see more commercial properties being offered for sale, in particular from the nationalised banks in order to reduce their exposure to real estate. We are likely to see acceleration in the pace of assets coming to the market, an increase in ‘big ticket’ disposals and a decline in the amount of time that delinquent loans are allowed to languish. This trend indicates that banks and servicers feel that the market has adequately recovered and that they can achieve fair pricing.”
Although the real estate market in the UAE remains subdued due to a lower demand coupled with a higher supply, deliveries are received by the industry as good news. With more residents moving in due to lower rents and prices, analysts expect the market to show some positive signs late next year.
Cross-border investment has remained at the 50 per cent mark throughout this year, and Jones Lang LaSalle expects this share to rise as equity rather than debt buyers, especially from Asia and the Middle East, continue to target trophy assets in European markets.
Richard Bloxam, Director, EMEA Capital Markets Jones Lang LaSalle added: “Retail property will account for 30 per cent of transactions in 2010 and is forming an increasingly large proportion of investment portfolios.”
The first project to be handed over in Business Bay is the 16-storey Hamilton. Handover will begin on December 30. Additionally, the company has committed to completing all its ongoing projects by the end of 2011.
“We are confident that all our projects in Business Bay meet the stringent benchmark of quality that we set for ourselves. Further, to support our customers in this period of restrained liquidity, we have also tied up with leading financial institutions for financing solutions. We are also thoroughly to the relevant government authorities for helping us secure the requisite infrastructure, services and utilities,” he said.