Since its inception, the Abu-Dhabi based Manazel real estate company has been targeting the middle-income market and creating full-fledged communities in Abu Dhabi, and most recently in Amman, Jordan. According to the company's deputy managing director, Fayza Al Zarouni, the company is on the safe side for two reasons. First, the middle-income market is still healthy since people belonging to that segment did not invest significantly in the stock markets. "You will also find many developers for high-end projects who are revisiting their strategy to go with middle-income property developments," she says. Second, the Abu Dhabi market is fairing much better than the Dubai market. Al Zarouni says that there is still a shortage of residential properties, amounting to up to 28,000 units. "The market in Abu Dhabi is stronger. It is affected by the crisis, but not as much," she adds.
Still, the most important challenge that Manazel faces is securing financing for both the construction of projects and the end-users. Zarouni also explains that some big mortgage companies are also hesitant to pay developers. "They are financing still, but for us to collect our money is not easy," she says. For that reason, Manazel is trying to work closely with banks to find a way to support its projects as well as customers. "Under one roof, we gathered banks and invited our customers and told them that these banks are willing to support you and finance your properties, and everyone has put out their terms and conditions," she adds.
At Cityscape, Manazel is showcasing the Al Reef project located near Abu Dhabi International Airport, of which the first phase is due for delivery this year, while the rest will be handed over in different stages during 2010. It is also showing progress on Prestige Towers, located in the 9712 BMC development in Mohamed Bin Zayed City in Abu Dhabi. Both of the projects are fully sold. The company is planning to continue catering to the middle-income market, but there are no specific plans since the launch of any new development will depend on market conditions, explains Zarouni.
Al Reef Villas
Location: Near Al Raha Beach and Abu Dhabi International Airport
Type: Large scale residential community
Size: 1 million square meters
Residencies: 2,300 villas and townhouses (1, 2, and 3 bedrooms), 1,800 apartments
Commercial: A four-star hotel and retail area
Status: 100 percent sold
Delivery: End of 2009 and throughout 2010
By Nada Nohra
© Executive 2009
