Dubai real estate developers seek out African investors

source Daily Monitor

A Dubai-based real estate company has set its sights on attracting Kenyans to invest in property in the city as part of its diversification plan.
Memon Investments LLC aims to attract high value investors from the country as part of its growth strategy, which mainly involves exploring new markets especially in Africa. Memon is on the road in Nairobi and Mombasa showcasing a portfolio of over 10 complexes under development worth $365 million (KSh27.3 billion).

“We hope to leverage on this road show as an effective platform to build awareness on our projects among high net worth investors in Africa,” said Memon’s sales manager, Mr Arif Majeed.
Speaking to potential real estate agents Mr Majeed was quick to ease fears on the impact the global financial crisis has had on the real estate market in Dubai.

“We are offering payment plans on our properties, which are currently in development stages,” he said.
The properties will cost Dirhams 1,450 (KSh29,000) per square foot, with prices for a studio apartment costing from Dh700,000 (KSh14 million) upwards depending on the complex while a three bedroom is going for over two million dirhams (Sh40 million). For those interested in investing in the business centre, a square foot will retail at Dh1,500 (KSh30,000).

Memon will be offering a special payment plan of 10 per cent down payment and five per cent every three months on the remaining 70 per cent on hand over.

The other option includes a seven-year payment plan of 10 per cent down payment and five per cent after three months with the balance being staggered over 84 monthly installments with a 5.9 percent charge. Memon Investments is part of the Memon Group of Companies, a conglomerate with interests in real estate development, trading, manufacturing and IT.

Value of property has been reported to be on the decline with most potential clients holding back on investing due to the recession. This has raised the questions of supply surpassing demand thus eroding the worth of investments.

However Mr Majeed was quick to reassure the agents that demand was still high in the city especially as Dubai turns itself into a sporting destination the demand is expected to increase.

Mr David Machua, a director with Lloyd Masika who has previously travelled to Dubai looking for opportunities, noted that before the crisis the city was very viable but now people have to be cautious because of the reports of prices going down.

The Institute of Surveyors of Kenya (ISK) welcomed the opportunity for agents to broaden their portfolio thus minimising their risk exposure but noted the company would have to give certain guarantees.

“There is the legal framework in Dubai that has to be understood and by partnering with registered agents who are understand the product Kenyans can be protected,” he noted.

For him its an opportunity for the investment company to also look at investing in Kenya where there is a need for more low and middle income housing. An opportunity that Mr Majeed said they were looking at when in the country and would most likely partner with a Kenyan company.

Dubai has in the past ten years risen to be a major investment ground especially in real estate where it now spots an ultra modern skyline. According to the country’s policies an investor in residential property get a resident visa to access the country.