Sabban Property Investments, currently finalising the handover of its three towers on the Pearl-Qatar, is in no hurry to get going on its next project. Instead, the developer has confirmed plans to be closely involved with the property management of the Sabban Towers for the first full year after the handover.
"The company has already invested a great deal of time and energy on the development, which is one reason why we decided we will pay the full service charges for the first year," states Arron Browne, sales and marketing manager, Sabban Property Investments. "This way we still retain a fair amount of control over the property and, at the same time, build a close relationship with investors."
But that does not necessarily preclude SPI from looking at new prospects. Preliminary negotiations to identify the desired location and the kind of project that would be most suitable are ongoing.
"With the way the property markets are behaving, we have to be realistic about what we ought to do next," Browne adds. "It could be in Qatar again, because of the experience we have gained in the past four years. Saudi Arabia and Abu Dhabi are two interesting prospects we may consider."
Looking back
As any developer in the region would tell you, they wouldn't look at 2009 with any degree of affection. On its part, SPI has mixed feelings on how the past year shaped up the company.
Between February and October, it was a constant ‘struggle' to generate any kind of sales. "I remember it was just before the downturn got really bad that we released 50 apartments of the 100 units in Sabban Towers we had held back from selling earlier," Browne recalls.
"There was a great deal of nervousness due to lack of mortgage clarity and the knock down effect from Dubai's property crash. But since October we could see a renewal of interest as word got around that the first phases of Pearl-Qatar were ready."
For sure, the Porto Arabia was an instant cynosure with its 1.5km stretch featuring upscale boutiques and cafes.
"There were street entertainers every evening and thousands would come to take in the atmosphere and lap up all the excitement. People realised that this was not going to be a ghost town.
"All this activity brought on a resurgence of interest in the residential component of Pearl-Qatar, helped in no small way by residents moving into the first of the three buildings, including those belonging to UDC, Pearl-Qatar's master-developer. They will be joined soon enough by those heading into the 500-plus apartments in Sabban Towers."
Certification
SPI is going through all the fundamental processes mandated by the master-developer to get its buildings certified as ready for occupation.
"It is a thorough process that goes room by room and closely examines each of the 220,000 square metres that we developed," states Browne.
"On our own, since March last year, we have gone through all the inspections from our side. Running alongside, we got our investors to come in and go over their properties. I think more than 85 per cent have already done so."
A good number have actually held on to their properties, which were launched in September 2006. Against the launch price of Dh7,395 a square metre, values soared to between Dh13,000 and Dh14,000 for the top-of-the-line three-bedroom units during the peak.
There were some distress resale as low as Dh10,000 during the worst of the correction, but have stabilised at Dh 13,500.
"Buyers who stayed on until the completion of the project are realising the value of what they bought into," Browne adds. "It's exactly the way we always intended it to be."
What's in store
- A co-owners' association will come into being as soon as the apartment handover attains critical mass.
- Sabban Property Investments has an arrangement with Lifestyle Homes and Properties to offer leasing services on behalf of its investors.
- A facilities management company for Sabban Towers will be confirmed shortly.
