Sharjah-based property developer Arada has secured financing worth 337 million UAE dirhams ($91.7 million) from two lenders.

The new loan agreement with Dubai Islamic Bank, amounting to 300 million dirhams, and Ajman Bank (37 million dirhams) will help the builder finance the construction of residential projects that were launched last year. The developer had previously secured loans totalling 2 billion dirhams in 2017 and 2018.

“We see the closure of the new financing agreements with Dubai Islamic Bank and Ajman Bank as another vote of confidence not just in Arada but in the resilience of the Sharjah property market,” said Shaikh Sultan bin Ahmed Al Qasimi, chairman of the company.

Arada announced in December the construction of a new upscale community, the Naseej District in Sharjah. It will feature 16 residential buildings in which some flats overlook garden spaces and open courtyards. It also launched two other developments, the Vida Residences Aljada, which is in partnership with Emaar Hospitality Group, and the second Sarab garden villa community.

Despite the challenges, Arada said it ended 2020 on a positive note with robust take-up of residential units in Sharjah. The developer saw its sales dip during the global lockdown last year, but it said that real state demand recovered strongly in the following months after the restrictions eased, particularly during the third quarter.

Buyers snapped up a total of 2,337 units sold by Arada during 2020, with investors flocking to higher-end apartments and villas.

Industry sources have said that the UAE’s property market is showing signs of improvement, but the overall demand remains weak compared to pre-COVID-19 levels. The market is expected to take about a year or two before it fully recovers.

(Writing by Cleofe Maceda; editing by Seban Scaria)

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© ZAWYA 2021