20 April 2009
Al Qudra Holding has said it has reduced prices of Shades tower project in Al Reem Island by 21 per cent because of the drop in building material prices.
CEO Mahmoud Al Mahmoud was speaking to journalists on the sidelines of Cityscape Abu Dhabi 2009.
Asked by Emirates Business about talk of delays in company projects, especially that of Danat Abu Dhabi, Al Mahmoud said: "Our projects are proceeding at a very good completion rate, and there is no delay whatsoever. In May, we will complete the infrastructure of Danat Abu Dhabi so that land is handed over to investors after agreement with Abu Dhabi Urban Planning Council on the new projects."
He said Al Qudra is studying the reduction of prices of Al Ain Al Faidha project at a similar percentage. Reduction applies to old and new buyers alike, he added.
Meanwhile, developer Sorouh Real Estate said it was cutting prices and easing payment plans on an Dh8 billion ($2.18bn) project to help customers weather the global financial crisis.
"Sentiment is positive in the market but price is playing a determining role," Sorouh Chief Executive Mounir Haidar said.
Sorouh said in a statement it would cut selling prices, rephase and consolidate, and reschedule payment plans for Alghadeer, a mixed-use project located between Abu Dhabi and Dubai.
Al Mahmoud said Al Qudra managed to obtain finance for buyers of 75 per cent to 90 per cent. Al Hilal Bank offers 90 per cent finance, he said. The CEO said the company has sold most of Al Ain Al Faidha, which comprises 370 villas, to Abu Dhabi government. What is left is only 90 villas prompted at Cityscape. He said Al Qudra has decided to set aside 30 per cent of its projects for rent, adding that Abu Dhabi realty market still suffers big supply shortage.
Haidar declined to put a number on the price reduction but told reporters "it will be substantial".
Haidar said Sorouh has not cancelled any of its projects. The company's managing director Abubaker Seddiq al-Khouri said Sorouh was "lucky" to have sold more than 60 per cent in each of its projects, enabling them to go ahead.
Sorouh currently has more than Dh70bn worth of projects under development in the UAE and internationally.
Haidar said funding was not a problem as state aid had helped restore liquidity to the financial sector. "We have banks granting mortgages so money is flowing. The government has also injected money in some financial institutions but banks are assessing creditworthiness of customers," he said.
This year it needs 24,000 housing units as well as 28,000 ones annually over the coming years, said Al Mahmoud. (With inputs from Reuters)
Al Qudra Holding has said it has reduced prices of Shades tower project in Al Reem Island by 21 per cent because of the drop in building material prices.
CEO Mahmoud Al Mahmoud was speaking to journalists on the sidelines of Cityscape Abu Dhabi 2009.
Asked by Emirates Business about talk of delays in company projects, especially that of Danat Abu Dhabi, Al Mahmoud said: "Our projects are proceeding at a very good completion rate, and there is no delay whatsoever. In May, we will complete the infrastructure of Danat Abu Dhabi so that land is handed over to investors after agreement with Abu Dhabi Urban Planning Council on the new projects."
He said Al Qudra is studying the reduction of prices of Al Ain Al Faidha project at a similar percentage. Reduction applies to old and new buyers alike, he added.
Meanwhile, developer Sorouh Real Estate said it was cutting prices and easing payment plans on an Dh8 billion ($2.18bn) project to help customers weather the global financial crisis.
"Sentiment is positive in the market but price is playing a determining role," Sorouh Chief Executive Mounir Haidar said.
Sorouh said in a statement it would cut selling prices, rephase and consolidate, and reschedule payment plans for Alghadeer, a mixed-use project located between Abu Dhabi and Dubai.
Al Mahmoud said Al Qudra managed to obtain finance for buyers of 75 per cent to 90 per cent. Al Hilal Bank offers 90 per cent finance, he said. The CEO said the company has sold most of Al Ain Al Faidha, which comprises 370 villas, to Abu Dhabi government. What is left is only 90 villas prompted at Cityscape. He said Al Qudra has decided to set aside 30 per cent of its projects for rent, adding that Abu Dhabi realty market still suffers big supply shortage.
Haidar declined to put a number on the price reduction but told reporters "it will be substantial".
Haidar said Sorouh has not cancelled any of its projects. The company's managing director Abubaker Seddiq al-Khouri said Sorouh was "lucky" to have sold more than 60 per cent in each of its projects, enabling them to go ahead.
Sorouh currently has more than Dh70bn worth of projects under development in the UAE and internationally.
Haidar said funding was not a problem as state aid had helped restore liquidity to the financial sector. "We have banks granting mortgages so money is flowing. The government has also injected money in some financial institutions but banks are assessing creditworthiness of customers," he said.
This year it needs 24,000 housing units as well as 28,000 ones annually over the coming years, said Al Mahmoud. (With inputs from Reuters)
By Abdel Hai Mohamad
© Emirates Business 24/7 2009
