Dubai: Dubai Properties Group (DPG) has delivered about 5,000 residential units and in the next year is looking to hand over its units in Business Bay, a top official told Gulf News.
The group is looking to deliver Bay Square in Business Bay and aims to complete the infrastructure of the first area of Business Bay located on the north side of the project parallel to Shaikh Zayed Road.
"Infrastructure areas within Business Bay are in review with the municipality. We're planning the infrastructure completion in that area. We are currently reviewing a couple of other projects just to see how we're going to decide on it by the end of the year in terms of completion vs evaluation," Khalid Al Malek, Group CEO of DPG, said.
High occupancy
In the last year, DPG has enjoyed high occupancy rates in its built-to-lease units. Ghoroob and Shorooq in Mirdif have exceeded 80 per cent occupancy while Layan and Al Khail Gate are hovering at around the 90 per cent occupancy mark.
Jumeirah Beach Residence's long-awaited gymnasium and beach club will be operational by 2012, said Al Malek. The lack of a gymnasium and beach club in the JBR complex has been a major point of contention among residents since the units were handed over in 2007. Al Malek said the group is concentrating on adding value to its community projects by completing and adding amenities and facilities.
At this years' Cityscape Global, DPG is enjoying a change in investor sentiment and in the first two days has made several sales in their villa projects, he said.
"It's a fantastic sign from the market that demand is back. Purchases are back now, and viewing and considering investments in real estate," Al Malek said.
"Last year was more of monitoring, more of gauging. People have now seen better performance and statistics, have got good percentages in terms of return on their investments and are now being more optimistic with cash and cheques," he said.
"Today we're seeing demand and deals from investors."
This year the group is showcasing its destination developments, The Walk, Business Bay along with its projects that are nearing completion or hand-over, such as Shorooq Mirdif, Ghoroob, Layan, Al Khail Gate, Executive Towers and Vision Tower, and phase two of the Remran development and Bay Avenue retail development.
Different investors
DPG, which was formed in 2004, is one of Dubai's biggest property developers with projects such as Jumeirah Beach Residence and Business Bay in their portfolio. Their Dubailand development, which covers 278 square kilometres, initially had more than 40 projects planned. Many of those were stalled, including Universial Studios, Astrolab and Lifesyle City.
Al Malek said for projects on Dubailand DPG are currently in negotiations with different investors and developers to start the stalled ventures. Sustainable City has so far been given the go ahead and they are in serious negotiations for three other projects whose names cannot be revealed.
Selective about investors
"The Dubailand project is big in size, investment and complexity. We want investors with the right mindset because these do take time and consume big investments in terms of money. We are being very careful in selecting the right investors," said Al Malek.
While there is a positive turn in investor sentiment, the maturity is dependent on the rest of the economy.
"We are now witnessing signs of good performance. We are witnessing the appetite of investors returning. These are good signs in terms of maturity. However, real estate has to follow other industries. It is very dependent on the logistics, finance, trade and other industries in this part of the world," he said.
In order to encourage investor sentiment, Al Malek emphasised the importance of financial institutions.
"The biggest players are the financial institutions. Mortgage companies really need to consider the situation in this industry and allow flexibility for liquidity in the industry," he said.
