Burooj Properties eyes middle income market

Dubai: Burooj Properties, a wholly-owned subsidiary of Abu Dhabi Islamic Bank (ADIB), will expand its Dh19-billion residential project portfolio by embarking on a major expansion drive despite the current economic situation, a top official said.

The company is planning to develop a number of master-planned communities in Abu Dhabi and Egypt. It is already working on an Dh18-billion master-planned mixed-use community, the Sharjah Marina.

The company held a two-day board meeting in Dubai that concluded yesterday.

"We have reviewed our strategy and laid out a detailed plan for the next two years," Adel Ahmad Zarouni, managing director of Burooj Properties, told Gulf News on the sidelines of the meeting.

"We are going to focus on the middle-income residential property market. The board has also given us the go-ahead for major international expansion."

ADIB recently approved the doubling of Burooj Properties' capital from Dh500 million.

"For us, cash mobilisation is not an issue. With a bank like ADIB we could raise capital as we would need. The important aspect for us is to focus on the right market and deliver the products," he said.

Islamic lenders such as ADIB tend to rely on the real estate business in view of the higher returns. That's why almost all Islamic banks have their real estate subsidiaries to maximise efficiency.

Burooj will hand over plots of land to villa developers at the Al Gurm Gardens, where show villas are ready, Al Zarouni said.

"Burooj Views, our towers at the Reem Islands, are nearly ready. We will deliver them next January. Besides, Sharjah Marina, our flagship mixed-use community, is currently undergoing master-planning and design," he said.

Al Gurm Gardens has a development value of Dh400 million and Burooj Views is valued at Dh800 million.

Al Zarouni said the property market is approaching stabilisation. "It will start to recover from next year, slowly," he said.

Apartment prices for completed projects in the prime area have seen the highest quarter-on-quarter increase of 8 per cent, according to the a latest report by Asteco, one of the largest property managing and leasing firms.

Asteco CEO Elaine Jones said: "Both Downtown Burj Dubai and Jumeirah Beach Residence are highly desirable, fully established communities, which are exactly what the market is seeking. A completed tower is no longer enough if it is not part of an integrated community with convenient access to schools, hospitals, transport, leisure and entertainment facilities. In terms of villa communities, The Springs and Arabian Ranches are faring well for the same reasons."

Burooj does not have any presence in Dubai.