Half the buyers in a Dubai Sports City apartment project are in default on their purchases, underscoring the problems facing developers in the Dubailand development.
Many of the defaulters in Rufi Twin Towers are investors who bought at the height of the market, said Rameez Rufi, the vice president of Rufi Real Estate.
"People who are looking [at the apartment] as an end user or to rent, they are still paying," Mr Rufi said.
Buyers backing out of their purchases in the face of falling prices and changing economic circumstances have been a major problem for developers in Dubailand, a Dh235 billion (US$63.98bn) master-planned development off Emirates Road.
Many developers have delayed construction because of non-payment by buyers who were unable to arrange financing.
"There are a lot of unfinished buildings standing around in Dubailand," said Hannah Bakshani, a sales consultant for Better Homes.
Several buildings in the Remraam development were delayed "due to non-payments from customers", Dubai Properties Group said in a recent statement.
The default rate was more than 40 per cent among buyers in two towers developed by H&H Investment and Development, said Shahab Lutfi, the company's chief executive.
In some cases, buyers had been allowed to make down payments as low as 30 per cent on condition they would pay the balance at handover. But with prices down as much as 50 per cent in the area from the peak of the property market in 2008, many buyers are choosing to walk away from their purchases rather than make the final payment.
Owners not making their payments often try to sell their units at "any crash price" to get out of the deal, driving down asking prices, but none of those units are selling, Ms Bakshani said. "There are no buyers for off-plan property," she said. "Interest is in finished product." Mr Rufi has chosen to continue construction on the Rufi Twin Towers and expects completion within a year.
Work also continues on the 15-storey Rufi Park View and the 20-storey Rufi Golf Greens in Sports City.
"If 50 per cent are paying, we can make construction," he said.
Rufi Real Estate owns nine plots of land in Dubai Sports City and is developing five projects. The company is swapping properties from delayed projects and renegotiating deals on a "case by case basis", Mr Rufi said.
"Otherwise people will run away," he said. "To sit in this market, you have to listen to the buyers." Rufi Real Estate is the property development arm of the family-owned Rufi Group, a Pakistani company. It began buying land in Dubai in 2005 and now owns more than 35 parcels, Mr Rufi said.
Last week, the company began handing over apartments in Rufi Gardens, an 11-storey apartment building in International City, its first project completed in Dubai.
All the 140 apartments in the building were sold in 2008, typically for between Dh400,000 and Dh1.1 million, primarily to buyers from China, Pakistan and India, Mr Rufi said. The tower is near the Dragon Mart, making it attractive to Chinese buyers, he said. Ninety per cent of the buyers in Rufi Gardens have made their payments, Mr Rufi said. Rents in International City declined 4 per cent in the second quarter from the previous quarter, one of the steepest drops in the Dubai market, as more apartments became available, Asteco Property Management reported.
But the rental yields in International City are still among the best in the city because of the lower original prices, Mr Rufi said.
"From my side, it is an area for middle class, but the rental is very good," he said.
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The Little Things
Directed by: John Lee Hancock
Starring: Denzel Washington, Rami Malek, Jared Leto
Four stars
Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
Company profile
Company name: FinFlx
Started: January 2021
Founders: Amr Yussif (co-founder and CEO), Mattieu Capelle (co-founder and CTO)
Based in: Dubai
Industry: FinTech
Funding size: $1.5m pre-seed
Investors: Venture capital - Y Combinator, 500 Global, Dubai Future District Fund, Fox Ventures, Vector Fintech. Also a number of angel investors
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Company profile
Name: WonderTree
Started: April 2016
Co-founders: Muhammad Waqas and Muhammad Usman
Based: Karachi, Pakistan, Abu Dhabi, UAE, and Delaware, US
Sector: Special education, education technology, assistive technology, augmented reality
Number of staff: 16
Investment stage: Growth
Investors: Grants from the Lego Foundation, UAE's Anjal Z, Unicef, Pakistan's Ignite National Technology Fund
COMPANY PROFILE
Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
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SPEC SHEET: SAMSUNG GALAXY Z FLIP5
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COMPANY PROFILE
Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)
BABYLON
Director: Damien Chazelle
Stars: Brad Pitt, Margot Robbie, Jean Smart
Rating: 4/5
The Specs:
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Transmission: 8-speed automatic
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The specs
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Power: 435hp at 5,900rpm
Torque: 520Nm at 1,800-5,500rpm
Transmission: 9-speed auto
Price: from Dh498,542
On sale: now
Company Profile
Company name: OneOrder
Started: October 2021
Founders: Tamer Amer and Karim Maurice
Based: Cairo, Egypt
Industry: technology, logistics
Investors: A15 and self-funded
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Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others
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Director: Blitz Bazawule
Starring: Fantasia Barrino, Taraji P Henson, Danielle Brooks, Colman Domingo
Rating: 4/5
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Director: Jon M Chu
Starring: Constance Wu, Henry Golding, Michelle Yeon, Gemma Chan
Four stars
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Creators: Matt Sazama, Burk Sharpless, Irwin Allen
Stars: Molly Parker, Toby Stephens, Maxwell Jenkins
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Confirmed bouts (more to be added)
Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez
Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.
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Winner: Walking Thunder, Connor Beasley (jockey), Ahmad bin Harmash (trainer).
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