Dubai: Dubai Properties Group (DPG) is focusing on the delivery of existing projects for the remainder of this year and will be set to announce where the rest are heading in 2011.
"We're now in the phase of challenge we must manage carefully. The strategy is to review projects and coordinate closely with all concerned parties to successfully deliver," Khalid Al Malek, group CEO of Dubai Properties Group, told Gulf News.
Less advanced projects are on hold. But Al Malek stressed that none has been cancelled but it is rather about when to bring them back to the market.
"We're reviewing each of them and will have clarity to announce the details next year," he added. The Culture Village, where Damac and Sunland Group have projects, for example, and The Lagoons, Al Malek said are going ahead. Why cancel a beautiful project like The Lagoons, for example, he said.
"We have investors into the project and will support them and are coordinating with the authorities to make sure the infrastructure is there. If developers are serious they can get on with building their projects," he said.
New areas
Dubailand's myriad developments include the cities of Arjan, Liwan and Majan. Malek said that new areas are being defined and new projects will be announced in the first quarter of 2011.
The Mudon development, where the Cairo townhouses have been under construction, is still on hold and under review.
In the meantime the developer continues to focus on the completion and delivery of existing projects. Phase one of Remraam and The Villa phase two, both in Dubailand, are being prepared for delivery in the second quarter of next year.
The leasing portfolio is the developer's other main focus. Mirdif's Shorooq development has a waiting list, Al Malek said.
He said he expects the same to happen with its other project in the area, Ghoroob.
Layan, behind the Arabian Ranches, is also 85 per cent rented out the developer said.
And the low cost housing community Al Khail Gate has found favour with private tenants and corporate customers as staff accommodation.
"It's all about increasing the services and facilities. We need to provide a community. Tenants are looking for value for money," Al Malek said.
The developer doesn't plan to raise rents in those communities unless the demand and supply situation in the market changes.
Owners and tenants in freehold areas also want what they expected to get when they made the purchase. The absence of beach parks and enough gyms in Jumeirah Beach Residence (JBR) has been an issue for residents.
"We're very focused on delivery and giving customers what they have been promised. We're carrying out surveys as residents demand changes and adapt accordingly," Al Malek said.
In the case of JBR, it will get its first beach club next year as DPG is in the process of completing the transformation of the old sales centre. More gyms are going to emerge with the podiums and prayer rooms have also been requested.
"Several parties have expressed interest in developing the other beach park plots," Al Malek said.
Dubai Properties Group (DPG) says Business Bay will be completed one way or another.
"Our policy is to make sure Business Bay will look really nice. More and more people are moving in so the environment has to be right. We tell sub-developers they can't just leave their plots like that, whether that is completing their projects or something else," Kahlid Al Malek, group CEO, DPG, told Gulf News. Many sub developers in the development have been facing financial difficulties leaving unfinished structures or empty plots behind. But Al Malek said most of them are willing to complete their projects.
"It is financing which is the issue, we just need banks to lend again. The return of Tamweel was good news. We need more news like that," he said
The developer has put a dedicated team dealing with non-developed plots on-site to communicate with and assist sub-developers. The team has started classifying developers and is sitting with the authorities to find a solution.
Al Malek welcomed the Land Department's recent move to endorse projects already 60 per cent complete in certain areas, including Business Bay, to encourage banks to finance them.
"Any other projects which are not going ahead we have to clean the plots up, they have to look nice," he added.
DPG meanwhile is in the process of handing over the Vision Towers. It expects to complete Bay Square next year and is taking care of the rest of the landscaping of the master-community.
