Dubai: Any investor holding prime plots in Dubai will do well to keep close tabs on the developer Deyaar. The company is in the mood to acquire additional land from third-parties and get on with an aggressive offplan project program.
That’s according to the Deyaar CEO Saeed Mohammed Al Qatami after the company recently unveiled a set of solid financials for the first quarter 2023 and on track to take on more gains from new launches. And from the extensive capital restructuring that it did last year to see off accumulated losses.
The developer is in the mood to do more with offplan, says Al Qatami. “Until now, we may have been a bit slow on the launch side, preferring to do things one at a time,” he added. “But the Dubai property market is clearly in need for more offplan projects that can be delivered to tight schedules.
“Deyaar needs to up its launch cycles to help with that – and keep our financial recovery progressing smoothly.”
That will mean launches of projects of around Dh3 billion on land that it already owns. Plus, be on the lookout for other options involving third-parties.
“We could jointly develop those plots if we find it’s suitable to do so,” said Al Qatami. “Our partners bring in the land, and other resources if they want to, while Deyaar brings our resources to the table. Such alliances can be in the interest of all.”
Mobilizing offplan projects at the first opportunity is the name of the game in Dubai’s freehold property market now. Offplan sales had overtaken ready homes in 2022 and that’s how it has been progressing this year too. Developers are rushing in to fill demand and the pace of launches have picked up significant speed since the Eid break.
“Developers in Dubai are making sure they have enough choices to keep offplan buyers interested,” said an estate agent. “Their thinking is launch before summer – because there could be a lot of sales action as happened last year.
“There are still buyers waiting in the wings hoping the market will cool off slightly, or see prices drop in the price range and locations they are interested in.”
Those price dips are not happening in Dubai in the year-to-date. Those quarter-on-quarter property value increases are still happening across all locations. If there has been any change from last year, it’s to do with rate of value increases dropping slightly.
Deyaar’s full plate
The developer has got about Dh3 billion worth of projects ongoing, including the Regalia, the skyscraper in Business Bay. The latter project – with a project value of around Dh1 billion - was also the one that marked the first step in the Deyaar revival program, being one of the first offplan launches after the Covid phase and which was met with instant investor buy-in.
“Regalia was a good first step, and we are on track with the completion,” said Al Qatami. “We still have two prime plots at the Midtown community that we will develop. Those plans are being worked on.”
Rework the books
But all of the new strengths flow directly from the extensive work the company did on its capital structure. There was a 21 per cent reduction on the equity, and which dealt with the losses through the years. There was also a Dh500 million inflow from a legal verdict that went in its favour.
"The capital restructuring has delivered a company that is more sharply focussed on where its future lies," said Al Qatami. "Our 2022 numbers reflect these and we can take the momentum gains a lot forward."
This is where investors or developers with land on their books can come in. Deyaar and Al Qatami will be ready for them.