Agents adopt new strategies

Dubai: Local property developers and real estate agents are increasingly adopting strategies to adapt to the changing market.

Sherwoods Independent Property Consultants and Cirrus Developments LLC have recently announced plans to ease the burden on purchasers and to better reflect today's market conditions. Sherwoods will be providing more flexible services and packages to complement current industry initiatives in Dubai to adjust pricing and payment strategies.

Buyers will now have greater leverage in negotiating prices and payments with developers, it announced."Current market conditions call for more attention to customer needs and expectations, which has become our primary concern as we enter into the rationalisation phase, following the start of the credit crunch. We have to be more flexible as Dubai streamlines its property business in anticipation of a steady industry rebound towards the end of the year," said Sherwood's managing director Iseeb Rehman.

The company also expects increased developer mergers and acquisitions, as well as further reductions in construction costs to expedite market recovery in the last two quarters of the year.

This follows Cirrus Developments LLC announcing a proposal for its purchasers that offers a way forward for projects in which the majority of buyers run the risk of defaulting or being forfeited. The Restructuring Proposal (RP) which Cirrus presented to its purchasers in Aquarius Gate, located on Nakheel's Waterfront project, works on the basis of converting Aquarius Gate unit buyers into shareholders in the New Project Company which will develop the project.

The proposal has already been presented to the Real Estate Regulatory Agency (RERA).

Behnam Eshragh, chairman and CEO of Cirrus Developments, said, "This proposal does not nullify the reservation form, the property purchase and sales agreement and/or any notices which are in place. It provides a way forward for Aquarius Gate and offers a collaborative solution for the purchasers and the developer.

"Our proposal will allow us to maintain our relationship with our purchasers," he added.

Abu Dhabi to increase supply

Abu Dhabi_ The capital will witness an estimated delivery of 23,000 units in 2009 and 2010, according to EFG-Hermes, an increase from the number delivered last year. "From 1,200 units estimated to have been delivered in 2008, we expect an increase at 6,000 units in 2009 and 17,000 units in 2010. We expect the ramp up in supply to continue through 2019," the investment bank said in a report.

Dh3 billion Ajman Uptown project on track

Ajman_ Sweet Homes has announced that its Dh3 billion Ajman Uptown project is making steady progess. The developer is optimistic that it will be able to deliver the project within its stipulated completion deadline. "Our efforts to intensify the construction progress is in line with our aims to bolster consumer confidence," said Fahad Sattar Dero, CEO, Sweet Homes Group.