Focus on construction not announcements, says Damac Properties boss
Managing director Ziad El Chaar dismisses concerns about property market crash.
October 9, 2013 3:42 by Muhammad Aldalou
In the midst of announcements of mega real estate projects in Dubai, including The Lagoons by Emaar and Dubai Holding, Nakheel’s revived Palm Deira development or Dubai’s canal project, Ziad El Chaar, managing director of Damac Properties, says the main focus should not be on the announcements.
“Particularly from a media or public perspective, don’t listen to the announcements or their values. Just make sure that the developer announcing a project is 100 per cent compliant with the laws of Dubai,” he says, adding that it is a big factor in protecting the sanity and evolution of the market, as well as the investor who’s buying in Dubai.
“As long as a developer is focusing as much on the construction as they are on the announcements, we’ll all be in good hands. Those are the things of value that people need to focus on when deciding whether to buy or not.”
El Chaar also dismissed concerns that the property market may be heading towards another crash or bubble, emphasising that the demand for owning a property in Dubai has always been high, and that current regulations ensure that developers are much more committed now.
For a developer to launch a real estate project in Dubai today, he says the company must first buy the land (and pay for it in full), handover of the plot, design the project, issue the necessary permits, appoint a contractor, open an escrow account and deposit 20 per cent of the construction budget in it.
When asked what he thought about speculative buyers and the return of property flippers in the market, he says: “Don’t judge the whole market by a number of launches where developers intentionally under price their offerings, it’s not fair to judge the entire sector on that basis.”
Damac Properties has launched its largest range of products at this year’s Cityscape Global in Dubai. In the past couple of days, the firm has launched Fendi-styled villas, Golf Veduta (serviced hotel apartments and villas) and The Trump Estates – housing 100 mansions – at its master development Akoya by Damac.
The mansions will overlook the second, third, fourth and eighth holes of the Trump International Golf Club.
The Dubai-based developer is also providing a rental return guarantee for every Golf Veduta property sold during Cityscape Global 2013. Buyers placing their new units into the Damac Maison management rental pool will be guaranteed a return of 24 per cent in the first three years.