Press Release

Dubai’s real estate market has made significant strides towards maturity – a long awaited situation since the comprehensive boom witnessed in the emirate during the first decade of the millennium. This signified a conclusive end to the stressful months that existed during the mentioned period, as a result of the rapid rise in the sector’s performance and the doubts from the uncontrollable rising prices driven by various factors that dominated the boom period. The GCC real estate markets, in general, and Dubai in particular, witnessed a number of positive and negative practices at that time which greatly impacted the entire real estate sector. These included the off-plan sales, unprofessional brokers and speculators, the blurred economic reports and the unjustified rise in rental value and sale price of commercial and office spaces. Dubai is seeking to continuously strengthen the foundations of maturity by prudent and direct supervision. Eng. Naif Al Awadi, CEO of Al Mazaya Holding’s Dubai Operations, said: “ We are in constant contact with Dubai’s government departments including Dubai Real Estate Regulatory Authority (RERA) and Dubai Land Department. Therefore, we have noticed obvious changes in the regulations that govern the relations among developers and investors; working towards more efficient transactions among these parties. In the recent times, the investors market in Dubai has shifted from rapid sale to long term income generating projects, which generate guaranteed revenues, yet less in value than what developers used to generate during the previous policies”. “The real estate sector’s recovery requires other amendments in the loan policy, terms and conditions of sale and purchase contracts, realistic return on investment, raising the bar of real estate services, reducing fees and offering facilities and incentives to investors. These require joint efforts by all the related private and government sectors to accelerate the revival of real estate sector and then the other economic sectors”, Al Awadi added. According to reports issued by the Statistics Unit at Al Mazaya Holding, there is an apparent stability in the freehold projects of recent. This is a fact that was confirmed by the company’s monitoring of the real estate market in Dubai and its sale and rental transactions in the residential, office and commercial space, despite the supply of other 100 thousand units, expected to increase by the end of the year. The real estate market is still underperforming as a result of strong measures taken by banks with regard to liquidity. In response to this situation, reputed companies are offering other alternatives, relying on their track record of completed projects, and thus launching new high quality projects. There are a number of such reputed developers operating in the real estate market at the present. The reputation established by these companies during the post-crisis period together with investors’ confidence in the company’s investment decisions and their loyalty and keenness to support are all elements that will help the real estate market to go forward. Commenting on this trend Eng. Al Awadi said: “We confirm our confidence in the Dubai real estate market, and seek to further establish our footprint in this market. We have the investor friendly legal environment and modern infrastructure in the emirate on one hand, and our proven ability to complete and deliver our project on time, on the other. We have a track record of projects in the emirate such as “Sky Gardens” and “Business Avenues”, both of which have been completed, and “The Villas” is nearing completion. We are currently selling the remaining completed units of “The Villas”. The designs of these units have been inspired by Spanish lifestyle, with amenities that include swimming pools and gardens among many more. We have, also, the Q-Point project which is now under construction. The mutual confidence we have established with our customers has helped expand our investor base, and encouraged them to create a win-win relationship based on trust in the company’s ability to develop more projects and their confidence in Dubai existing and forthcoming promising opportunities”, he said. Al Awadi added: “Companies are thinking of what they can do to cope with the new trend of market stability. At Al Mazaya, we have established a reputed name in the market during the previous period, and completed a number of landmark projects. We are now busy putting the final touches on a host of projects targeting the UAE, Kuwaiti and GCC investors in Dubai. These projects have been developed following a study conducted on the real estate trading and the nature of the new phase in the real estate sector. The aforementioned results include offering competitive financial facilities for investors as part of the company’s strategy which focuses on stimulating the sector’s growth and paving the way for new trends of real estate investors, a move for which Al Mazaya expects tremendous success that may help encourage other companies to follow suit”. Al Mazaya aims to attract new groups of investors by providing furnished hotel apartments in Sky Gardens at the Dubai International Financial Centre that offer short stay options and enjoy competitive services and facilities at reasonable rates, together with direct access to the strategic district of Dubai International Financial Centre.