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Dubai Property Market Turnaround Seen by 2010
/ 23 July 2009
DUBAI - Dubaiís depressed property sector might start to recover by the middle of 2010, as foreign investors have begun to show interest in the emirate, a Sharjah-based property developer said on Wednesday.
“The property market has bottomed out and become very selective. We are seeing some foreign investors returning to the market,” said Federico Tauber, President of Tameer Holding Investment LLC.
Tauber said all of the $20 billion worth of projects undertaken by Tameer, with the exception of two, are underway and would be delivered on time.
“We have revaluated some of its projects in light of the downturn and projects such as Dubailand’s projects ‘Eye Park’ and ‘Podium’ have been put on hold,” he said. “We wanted to launch these projects last year but decided to delay them and refund Dh7 million of customers money. We may reconsider these projects when the market scenario improves.”
Tauber said the Tameer’s Palace Towers development at Dubai Silicon Oasis was completed with a delay of only two months. “All our projects are progressing and will be delivered on schedule,” he told reporters at Palace Towers.
Tauber’s upbeat outlook about the ongoing projects came amid reports that some investors in Tameer Towers project in Abu Dhabi were planning to withhold payments for Dh6 billion project in protest over a lack of progress in the mixed-use development. Tauber said Tameer team would be meeting the investor group to discuss their concerns before the next installment in payments comes due in September. The group, which represents around 50 investors with a combined investment of Dh100 million in the project, has accused Tameer of becoming increasingly aggressive in payment demands for its Abu Dhabi venture.
Tauber said Tameer has slashed prices of the Tameer Towers units by as much as 30 per cent in consideration of current market realities. Since all its other projects have been sold out, such discounts were not offered on them, he added.
“The delivery of Palace Towers development – a complex of 424 residential apartments, and 150 office suites — is good news in this market, Tauber said.
“The Dh500 million development is the first major project in the UAE for Tameer and is a huge milestone in the company’s history,” Tauber said.
Construction on the mixed-use tower block began in March 2007 and units within the building were due for handover in March 2009.
“The project was completed two months ago and we see this as a two-month delay. There is no particular reason for it,” Tauber said.
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