Latest entrant into Dubai property sector plans aggressive expansion

Dubai: The latest entrant into Dubai's real estate market, Al Barakah, has a portfolio value of Dh3 to Dh5 billion, and aims to be one of the top 10 developers in the region over the next few years.

Chief executive Imran Khan said: "The company was established to bring new values to the real estate industry. And with new Real Estate Regulatory Authority (Rera) regulations and property laws in place, it's created a level playing field where all developers have to be accountable and transparent.

"Most of the leading players in Dubai have been running business models pre-regulations and now they're having to change their model post-Rera."

Al Barakah's first acquisition is the Sanali business towers in Dubailand at an estimated value of Dh1.3 billion. It has a total floor space of one million square feet and 100,000 square feet of retail space.

According to Khan, 80 per cent of the office space was sold in a three-day period in January at an average price of Dh1,150 to Dh1,200 per square foot.

Khan told Gulf News: "Dubai is one of the cheapest places in the world to buy real estate per square foot. More investors are coming in, especially from the US and Europe because now they have more confidence in the market.

"Now the market is being regulated and with the population boom, we've come at the right time."

Groundbreaking for the first residential development, Crimson Court in Emirates City in Ajman, will start in April and is due for completion in mid-2010.

Project value is Dh150 million and has 381,000 square feet of residential space and 120,000 square feet for services.

It is the first in a series of projects due to begin over the next three to six months worth a total of Dh3-Dh5 billion.

"Ajman is playing catch-up with Dubai and at half the price. So we can offer good quality, affordable housing for the lower-income group and with easy access to Dubai," Khan said.