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Emaar launches new subsidiary to focus on projects

By Abdul Basit DUBAI -- Emaar Properties , the developer of the world's tallest building Burj Khalifa, on Sunday launched its new wholly-owned subsidiary Dawahi Development that will focus 'value housing' projects across Arab word.

The next-generation developer will function as a separate entity with a dedicated management team and professional staff members focused on value housing projects within full-service community developments, Emaar said in a statement.

Seeking to become the region's leading developer of integrated communities that meet the aspirations of Arab youth and their families, Dawahi Development will develop 'value homes' at attractive price points in key emerging markets across the Middle East and North Africa (MENA) region, while also creating robust employment and business opportunities for the local population, according to the statement.

Dawahi Development will principally address the burgeoning demand for value housing in the region. The current housing shortage in some of the fastest growing cities in the Middle East alone is estimated at over five million units. To address the demand, Arab governments have announced investments of over $150 billion in middle income housing projects. Emaar Properties chairman Mohamed Alabbar said: " Emaar Properties has set a solid track record in the successful development and timely delivery of real estate projects across the Arab world. While Emaar will continue to focus on the 'affordable luxury' real estate sector, Dawahi Development aims to provide management, master development design incubation and programme management to develop 'value housing' projects across the wider MENA region."

Last week credit rating agency Moody's upgraded Emaar properties with stable outlook and said in view of Emaar 's reduced exposure to the Dubai market, the rating agency expects the company to become more internationally focused.

"Dawahi Development will leverage Emaar 's competencies to create a greater volume of value homes through a unique supply chain management strategy, to ensure mid-price points. This new initiative complements Emaar 's strategic long-term outlook to add value for our stakeholders by leveraging growth opportunities in emerging markets," Alabbar said.

He said that Dawahi Development will focus on projects in regional markets in the Gulf and beyond, and will eventually establish operations across the Levant and wider markets. "The cities in the emerging markets of the MENA region will account for the largest share of future urbanisation initiatives. Led primarily by the emerging middle class, these cities face a monumental housing deficit.

The number of families in the region with an annual income of over Dh100,000 (about $25,000) is expected to double to 28 million by 2025. They will require quality homes and modern amenities that suit their lifestyle aspirations.

"The public sector alone cannot bridge the gap for value housing across the wider region -- which is why we have launched Dawahi Development. With Dawahi Development, we are creating a new category of homes and communities that provide value to young families. This new category can be defined as the mid-price point housing," he said.

The value housing projects are envisaged as modern, full-service communities featuring the full spectrum of lifestyle amenities and utilities. Dawahi Development's communities will have educational institutions, healthcare centres, retail outlets and restaurants, community and sports centres, mosques and leisure options. Price of homes within Dawahi Development communities will vary from market to market.

© Khaleej Times 2011