| 08 Mar 2009 |
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Memon Investments projects UAE real estate market to bounce back within next 8 to 12 months
Ahmed Shaikhani
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Construction cost per square foot in the Emirates falls by an average of 30 per cent
Memon Investments, a leading Dubai-based property developer and part of the international business conglomerate, the Memon Group of Companies, has projected that the UAE real estate market will bounce back within the next eight to 12 months. The developer has based its optimistic forecast on recent industry findings, which reflect a decline in the construction cost per square foot within the Emirates by an average of 30 per cent since the onset of the economic crisis. The developer has also committed to continue fostering its strong relationships with leading construction companies, in line with its goals to hit the delivery targets for its projects - starting with the AED 75 million 'Champions Tower I', which is due for delivery by the end of 2009.
Industry experts point to the massive drop in the prices of steel, as well as that of other materials including aluminium, wood, glass and diesel. The declining cost of labour and supervision due to recent redundancies and terminations has also contributed to the dip in construction expenditures, which are now pegged between AED 400 to AED 900 per sq. ft. in Dubai and Abu Dhabi, and to as low as AED 170 and AED 200 per sq. ft. in Ajman. Amidst speculations of further decrease in construction costs in the coming months due to plunging oil prices, building materials costs and transportation prices, Memon Investments is focusing all its resources towards hitting the delivery deadline set for all its announced projects.
"In lieu of the massive correction in the prices of basic construction materials, we are now focusing our strategy on the implications of this development, particularly with regards to the construction and delivery of our launched projects," said Ahmed Shaikhani, Managing Director, Memon Investments. "Our strategic planning and consolidation efforts is being driven by our strong resolve to stay true to our promises to our customers in the face of this economic crisis, and we are proud that our actions are paying off with the steady progress we are witnessing in all our projects."
Memon Investments currently has a portfolio of projects valued at close to AED 1.34 billion, which includes the high profile residential 'Champions Towers' series, the luxurious ''Gardenia I & II', the 'Frankfurt Sports Tower I' and the 'Cambridge Business Centre'. The developer also announced that it has identified major master developments in Dubai, including Jumeirah Village South, MIZIN and Downtown Jebel Ali as locations for its new projects, which will include luxury residential, commercial and mixed-use developments. Amongst the leading construction companies with whom Memon Investments has signed strategic partnerships are Stromek Emirates Foundation, Majed Hilal Contracting, Al Sarh Contracting and Cairo Contracting Company. Additionally, the developer has also partnered with leading UAE-based construction suppliers, including Shanghai & Arabian Electromechanical LLC (SAE), HI-TECH Electro Mechanical Contracting Est, ETA MELCO and WIN GATE Electromechanical Services.
"The current adjustments we are seeing in the price of construction indicate that the industry is becoming healthier, which spells more opportunity in the long-term for those who can withstand these truly challenging times that the market is currently facing. It is our goal that by the time the real estate market regains its former vigour; we will be among the few developers to have endured the challenges and remained stable. We plan to accomplish this by working hand in hand with our construction partners as we determine the best course of action to be taken during this unique period in the history of real estate," concluded Shaikhani.
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About Memon Investments LLC
Founded as the property development arm of the international business conglomerate, the Memon Group of Companies, Memon Investments has grown to become a leading property player in the region offering a diversified portfolio of premium property projects. Guided by a tradition of excellence, the developer's intense focus lies within its core competencies, specifically acquisition, design and development, consultancy, leasing and management of properties. Leveraging the Memon Group's extensive real estate development experience, Memon Investments' UAE portfolio comprises of prestigious residential projects including 'Champions Towers I, II, III, and IV' and 'Frankfurt Sports Tower I' in Dubai Sports City; 'Gardenia I & II' in Jumeirah Village South, and its inaugural commercial venture - 'Cambridge Business Centre' in Dubai Silicon Oasis, all of which embody the developer's trademark top-notch quality and uniqueness.
Having delivered over 30,000 units across the globe with a presence in 90 countries spread across Asia, Africa, Middle East and Europe, the Memon Group of Companies is presently commemorating its 30th year of delivering unique offerings and services to its global customers. In addition to its extensive expertise in the real estate market, the Group has also built a strong reputation for its unwavering support for various causes such as poverty alleviation, environmental conservation and academic development. As a socially-aware international corporation, the Group has devoted 19 years in support of the Rabia Charitable Foundation and the Rabia Relief Fund.
For any questions or to arrange an interview please contact:
Ms. Princy Philip
Sr. Manager - Marketing & Corporate Communications
Memon Investments LLC
P.O. Box 41950, Dubai, U.A.E
Tel: +971 4 2688111, Fax: +971 4 2626455
Mob: +971 50 2590860
Email: princy@memon.ae
CommuniGate Middle East
P.O. Box 66861, Dubai, U.A.E
Tel: +971 4 3988134
Fax: +971 4 3988137
Email: info@communigateme.com
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Community Comments (10)
Here's a link which just captures what all these soothsayers are all about... http://www.youtube.com/watch?v=VMK5PLVX8M4&feature=related ... have a g8 day!!!
And add to that the cost of financing such projects - arent the devlopers themselves cash strapped and borrowed heavily from other markets - the pool which is virtually dried up...
...such optimistic ( given current situtaion sounds more 'misleading') statements only seems to be a desperate effort to draw in some interest and in the process get the cash registers ringing again....
Well if the Memon group ( as any other "LEADING" real estate company in Dubai) are saying it will bounce then it will.. hahaha. They think of the cost of construction and forget the future cost of obtaining a mortgage! this will be high first of all as interest rates start moving upwards and last but no least.. people around the world have lost trillions!! why would they jump on the wagon again when they don't have the equity to put in to start with! those jokers and there polyster suits need to keep the reality board on there foreheads!
It is enlighting to hear Ahmed Shaikani's positive views on Dubai real estate market. I strongly believe that Dubai will bounce back soon and will bounce back stronger with all the amazing development taking place over there ie. Sports City, Festival City, Falcon CIty of Wonders, City of Arabia etc. I had the opportunity to meet Mr. Shaikhani and know many Dubai developers on a personal basis. Dubai real estate has grown for the last five years and this is a correction which was anticipated.
This is not a positive article. This is a press release LOL
Developers the world over are saying the same thing.
http://internationalpropertyinvestment.com/optimism-or-denial-in-the-indian-property-investment-market
LOL. That is because Memon properties wants to sell some of their properties which have lost value in recent past. So they are trying to create the buzz.
Unless and until US recovers from its sub prime crises, Dubai will not be able to gain its lost grounds. I can't see that is happening any time soon
Don't try to make us fool.
I doubt that the condition will improve soon.
Some humour in these depressing times! Welcome though.
And Memon are? I've never heard of them, despite having worked in global financial markets for 20 years. Banking crises like these, on average, hobble property markets for 4/5 years according to Ken Rogoff, ex Chief Economist of the IMF. As a Hongkonger who's seen all this before, I'm with Ken.
What else have the Memons projected??? No misguiding articles and prophecies please.
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