Sweet Homes Well-funded; will Enter Dubai Market: CEO

DUBAI - Sweet Homes, a property developer with Dh4.7 billion worth of ongoing projects in Ajman,

By Abdul Basit

Published: Fri 27 Feb 2009, 11:48 PM

Last updated: Mon 13 May 2024, 3:44 PM

Has funds to complete projects on time and plans to enter Dubai property market, said Fahad Sattar Dero, Chief Executive Officer of the company.

“We do have enough funds for the construction of our projects and so there is no need to borrow funds. Our next destination will be Dubai, and once the recession wanes and the market condition improves, we plan to launch new projects in the emirate,” Dero told Khaleej Times.

The property developer is also looking for forays into other neighbouring Gulf countries of Qatar, Oman and Saudi Arabia. He said Sweet Homes’ inaugural project, Rainbow Towers worth Dh1.7 billion, was on track and would be delivered next year despite an all-round slump in the once-booming property sector resulting in a drop in prices that prompted several real estate companies to cancel or postpone projects and cut thousands of jobs.

“We have awarded the main contracts for ‘Rainbow Towers’ and ‘Ajman Uptown’ to Master Civil Construction Company and Sweet Homes Contracting LLC, respectively. Construction of both projects are in full swing. With the launch of our own contracting company —Sweet Homes Contracting LLC — we have been able to stay on track with our plans to complete projects within the stipulated time. While others are retrenching staff, we are recruiting engineers, technical staff and labourers.”

Dero said developers would get benefit from a reduction in construction costs when they sign new contracts. Cost of construction has recorded 20 per cent decline since last quarter of 2008 and it is expected to fall further by up to to 15 per cent.

According the Real Estate Regulatory Authority of Dubai, developers are likely to delay delivery of about 20 per cent of residential units in 2009 and 40 per cent in 2010. The authority has received 1,030 written and e-mailed complaints since January last year on issues ranging from project delays, non-commencement of work, to absence of sales and purchase contracts, according to Marwan bin Ghalita, Chief Executive Officer of the authority.

“Amid the current economic situation that is prompting investors reconsider investing in real estate, our strategy is to provide them with attractively priced properties that will provide them with high returns in the long run,” said Dero.

The developer is offering a flexible five-year self-financed payment scheme with 50 per cent of the value due upon the project’s completion, 25 per cent due upon delivery and the remaining 25 per cent due after the hand over.

“We have this scheme spread over five years. This involves a 10 per cent initial payment and the remaining 90 per cent divided into quarterly instalments spread over five years, explained Dero.

The two projects will be equipped all modern amenities and facilities, including a sports bar, recreation area and a rooftop swimming pool.

· abdulbasit@khaleejtimes.com