Any investor who owns desirable real estate in Dubai should keep a close eye on developer Deyaar. The corporation is eager to begin an aggressive off-plan project programme and purchase additional land from third parties.
The company recently released strong financial results for the first quarter of 2023 and is on course to take on further benefits from fresh launches, according to Deyaar CEO Saeed Mohammed Al Qatami. Additionally, it benefited from the massive capital restructuring it carried out last year to offset accrued losses.
The developer is in the mood to do more with off-plan, says Al Qatami. “Until now, we may have been a bit slow on the launch side, preferring to do things one at a time,” he added. “But the Dubai property market is clearly in need for more offplan projects that can be delivered to tight schedules.
“Deyaar needs to up its launch cycles to help with that – and keep our financial recovery progressing smoothly.”
Projects worth roughly Dh3 billion will be launched as a result of land it already owns. Moreover, keep an eye out for alternatives that involve third parties.
“We could jointly develop those plots if we find it’s suitable to do so,” said Al Qatami. “Our partners bring in the land, and other resources if they want to, while Deyaar brings our resources to the table. Such alliances can be in the interest of all.”
The current strategy in Dubai’s freehold real estate market is to mobilise off-plan projects as soon as possible. Off-the-plan sales surpassed ready homes in 2022, and this year has continued that trend. Since the Eid holiday, the pace of launches has accelerated significantly as developers scramble to meet demand.
“Developers in Dubai are making sure they have enough choices to keep off-plan buyers interested,” said an estate agent. “Their thinking is to launch before summer – because there could be a lot of sales action as happened last year.
“There are still buyers waiting in the wings hoping the market will cool off slightly, or see prices drop in the price range and locations they are interested in.”
Those price dips are not happening in Dubai in the year-to-date. These quarterly gains in property value are still occurring everywhere. If there has been any change from the previous year, it is due to a minor decline in the rate of value increases.
Deyaar’s full plate
The developer is working on projects worth roughly Dh3 billion, including the Business Bay Tower Regalia. The latter project, which had a project value of about Dh1 billion, served as the catalyst for the Deyaar recovery programme because it was one of the first off-plan debuts following the Covid phase and received immediate support from investors.
“Regalia was a good first step, and we are on track with the completion,” said Al Qatami. “We still have two prime plots at the Midtown community that we will develop. Those plans are being worked on.”
Rework the books
But every one of the new advantages is a direct result of the intensive work the business put into its capital structure. The equity was reduced by 21%, which was used to cover the losses accumulated over time. Another Dh500 million came in as a result of a favourable court decision.
“The capital restructuring has delivered a company that is more sharply focussed on where its future lies,” said Al Qatami. “Our 2022 numbers reflect these and we can take the momentum gains a lot forward.”
This is where land-holding investors or developers can step in. They will find Deyaar and Al Qatami prepared for them.
