UAE real estate market 'set to bounce back'

source Gulf Daily News

DUBAI: The UAE real estate market will bounce back within the next eight to 12 months, says a leading Dubai-based real estate developer.

Memon Investments, has based its optimistic forecast on recent industry findings, which reflect a decline in the construction cost per square foot within the emirates by an average of 30 per cent since the onset of the economic crisis.

The developer has also committed to continue fostering its strong relationships with leading construction companies, in line with its goals to hit the delivery targets for its projects ¼ starting with the 75 million UAE dirhams 'Champions Tower I', which is due for delivery by the end of this year.

Industry experts point to the massive drop in the prices of steel, as well as that of other materials including aluminium, wood, glass and diesel.

The declining cost of labour and supervision due to recent redundancies and terminations has also contributed to the dip in construction expenditures, which are now pegged between 400 to 900 dirhams per sq/ft in Dubai and Abu Dhabi, and to as low as 170 and 200 dirhams per sq/ft in Ajman.

Amidst speculations of further decrease in construction costs in the coming months due to plunging oil prices, building materials costs and transportation prices, Memon Investments is focusing all its resources towards hitting the delivery deadline set for all its announced projects.

"In lieu of the massive correction in the prices of basic construction materials, we are now focusing our strategy on the implications of this development, particularly with regards to the construction and delivery of our launched projects," said Memon Investments managing director Ahmed Shaikhani.

"Our strategic planning and consolidation efforts are being driven by our strong resolve to stay true to our promises to our customers in the face of this economic crisis, and we are proud that our actions are paying off with the steady progress we are witnessing in all our projects."

Memon Investments currently has a portfolio of projects valued at close to 1.34 billion dirhams, which includes the high profile residential 'Champions Towers' series, the luxurious 'Gardenia I & II', the 'Frankfurt Sports Tower I' and the 'Cambridge Business Centre'.

The developer also announced that it has identified major master developments in Dubai, including Jumeirah Village South, MIZIN and Downtown Jebel Ali as locations for its new projects, which will include luxury residential, commercial and mixed-use developments.