Cityscape 2021: Deyaar plans to start several projects next year amid higher demand

Developer sold out its 70-storey tower in Business Bay to international investors and locals, senior executive says

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Dubai-listed developer Deyaar “did exceedingly well” in terms of sales this year and plans to launch several projects in different locations in 2022 amid a strong rebound in the UAE's property market.

The company will start new projects in Jumeirah Village Circle, Al Furjan and at its Midtown master development in Dubai Production City, vice president of sales, Nasser Amer told The National in an interview at Cityscape Global on Wednesday.

“We have quite a few projects coming up next year focused more towards the middle-income market,” Mr Nasser said.

He declined to disclose the value of the projects.

Deyaar will finance the new projects through a mix of debt and equity, as well as proceeds from sales, Mr Amer said.

One of the largest property companies in Dubai, Deyaar has built a number of projects across the emirate in areas such as Dubai Marina, Business Bay, Dubai Silicon Oasis and Jumeirah Lakes Towers.

The company is majority owned by Dubai Islamic Bank, the biggest Sharia-compliant lender in the UAE.

Developers, particularly in Dubai, are unveiling new projects as they seek to tap into growing demand for properties amid a market rebound.

The emirate recorded 37,537 sales transactions worth Dh88.12 billion ($23.9bn in the first eight months of the year, about 23 per cent more than for all of 2020, according to listings portal Property Finder.

The UAE property market is recovering and will continue to do well next year, driven by government initiatives and authorities' response to the pandemic, Mr Amer said.

“The momentum of sales and activity in real estate started in August and September in 2020 due to pent-up demand. There was some expectation and speculation that the momentum is going to drop. On the contrary, we have seen that the trend continued with the same strength throughout the first quarter of 2021 and in subsequent quarters.”

Demand was initially focused on "buy and move in near completion of properties" but it has since shifted towards luxury properties due to higher demand from international investors “on the back of excellent handling of the Covid situation by the government during the initial stages and as well as in later stages", Mr Amer said.

He expects the trend to continue throughout 2022. “We will not see [a] dramatic increase but it will be a flat demand, so the momentum will continue," he said.

In July, Deyaar launched the Dh1bn Regalia tower in Business Bay, which is “almost sold out” to international investors hailing from France, India, Russia, the UK, Germany and Spain, Mr Nasser said. UAE nationals also bought properties in the development.

The price of a one bedroom apartment in the 70-storey tower ranges between Dh980,000 and Dh1.1 million, while a two bedroom property costs around Dh1.7m and three bedrooms Dh2.4m.

“We have done exceedingly well in terms of sales and are ahead of the targets and expectations set at the beginning of the year because of the market recovery and the selection and the quality of the product that we put in the market,” Mr Amer said.

Earlier this year, Deyaar also handed over the Bella Rose development, a 478-residential unit project in Dubai Science Park.

Updated: November 11, 2021, 5:30 AM