MAG to double investments as property market stabilises

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MAG to double investments as property market stabilises
MAG - Dubai

Company is executing Dh5b projects, while developments worth Dh5b are at planning stage.

By Muzaffar Rizvi

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Published: Fri 11 Sep 2015, 12:00 AM

Last updated: Fri 11 Sep 2015, 9:31 AM

MAG Property Development is expected to double its investments in the real estate business as the market is stabilising and weeding out the non-performing stakeholders, its top official says.
Talal Moafaq Al Gaddah, chief executive officer of MAG Property Development, said the company is executing Dh5 billion projects at the moment while developments worth Dh5 billion are at the planning stage.
"We are developing Dh2 billion multi-phase project - The Polo Residence and The Polo Townhouses - located in the heart of Meydan City. The project will be completed by end of 2017," Al Gaddah told Khaleej Times at the Cityscape on Tuesday.
Elaborating, he said this twin development comprises 106 townhouses and a residential community spread across 29 five-storey apartment buildings. The Polo Townhouses are due for handover by first quarter of 2016 and The Polo Residences will be completed by fourth quarter of 2017. "Other MAG developments currently underway include a logistics project in Al Quoz, which is due for handover by the end of 2016," he said, adding that phase one of the Sharjah Complex in Al Saja'a will be delivered by mid-2016.
"The Sharjah Complex phase one will ensure availability of one million square feet of warehouses in the market," he said.
MAG Property Development is the real estate arm of Moafaq Al Gaddah Group, one of the region's largest corporate entities that launched its operations in 1978. The group employs over 2,000 professionals in more than 50 companies with activities spanning various sectors including commercial, real estate, service, industrial and pharmaceuticals.
"We focus on projects that deliver long-term benefits to investors and customers and has a current real estate project portfolio in excess of $3 billion," Al Gaddah said.
Cityscape showcasing
To a question, he said MAG Group and its real estate operations will be showcasing its move into the affordable housing sector with MAG 5 Boulevard project at the Cityscape Global.
"MAG 5 Boulevard in Dubai South area has an estimated construction value of Dh700 million and is strategically located adjacent to the Expo 2020 venue and within easy reach of Al Maktoum International Airport. The project comprises over 1,000 residential units and spread over 800,000 square feet of land," he said.
He said the project's phase one is scheduled to commence in first quarter of 2018 and will be a low-rise residential community offering extensive landscaping, pools, outdoor leisure spaces, children's areas and a community centre.
"About 80 per cent of phase one has been sold. We are launching phase two of the development at the Cityscape," he said. Al Gaddah said MAG Property Development is showcasing seven projects worth Dh5 billion at the Cityscape Global. It includes an exclusive preview of a new mixed-use hospitality and residential development at Jumeirah Lakes Towers, which has been designed to offer a new standard of luxury living in this popular residential area of the city.
"Other luxury MAG offerings being exhibited include The Polo Residence, MAG 226 at Jumeirah Village, MAG 230 along Sheikh Mohammed Bin Zayed Road , The Estate, which is under development at Al Furjan and The Gate, a development located in Frisco, Texas, United States. "We will also be using Cityscape to draw attention to its successful expansion into the international market with The Gate."
Market outlook
Al Gaddah said Dubai real estate sector is maturing and heading towards sustainable growth.
"Following the crisis of 2008-09, we witnessed a gradual recovery from 2011 until 2014 and then a slight decline of five to 10 per cent from the second half of last year," he said.
Referring to recent reports, he said total value of the construction sector in the UAE is expected to grow by 9.3 per cent to Dh55 billion ($42.2 billion) in 2015 compared to 2014. This is driven by massive investment in infrastructure projects and large-scale tourism projects, he said.
"The UAE market in general is stabilising and weeding out the non-performers. I believe that over the next few years heading towards Expo 2020 the real estate market the UAE will be characterised by slow, but steady growth," Al Gaddah said.
To a question, he said MAG Property Development is willing to explore other markets in Gulf, Middle East and North Africa.
"We are currently focused on projects within the UAE but are always on the look-out for opportunities that may arise in other markets.
"Our successful foray into the international market with The Gate in Texas has laid the blueprint for our planned continued expansion in international markets and other Gulf and Middle East and North Africa markets as and when the right conditions arise. Watch this space!"
muzaffarrizvi@khaleejtimes.com


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