UAE’s property sector growing despite challenges of pandemic

Sajjad Ahmad, Gulf Today

The UAE’s property sector performing well in the current challenging times of COVID-19 pandemic. The UAE government has announced various incentives and initiatives to mitigate the impact of coronavirus on national economy.

Reportage Properties, the leading real estate developer, announced a Dhs402 million sales in the first half of 2020, a growth of 200% compared to Dhs137 million for the first half of 2019.

The company’s continuous economic incentives since the beginning of the current crisis, as well as real estate financing facilities and the abolition of more fees, boosted the company’s sales, said Nasser Al Khamis, CEO of the Reportage Group of Real Estate Companies.

The developer has 8 UAE projects, including 6 in Abu Dhabi, within the areas of Masdar City, Al Raha Beach and Al Maryah Island, as well as two projects in the Emirate of Dubai.

Al Khamis said, “The company’s new projects, especially in Dubai, boosted the sales increase during the six months of 2020.”

He added, “We achieved strong results despite the challenges related to the outbreak of COVID19, which confirms the strength and stability of the real estate sector in the UAE.”

Reportage’s sales during the second quarter of this year amounted to Dhs261.6 million compared to Dhs140.3 million during the first quarter of the same year, which mirrors the stability of the company’s business style despite the challenges.

Khamees noted that the company economic incentives boosted the company’s sales, compared to the whole year of 2019, where total sales reached Dhs362 million, of which Dhs137 million sales for the first half and Dhs225 million sales for the second half.

“Four new projects were launched lately, which boosted the company’s sales,” said Islam Ahmed Suleiman,” Reportage Chief Operating Officer.

“We started selling units in ‘The Gate’ project in Masdar City, and ‘Almariya Vista’ on Al Maryah Island in Abu Dhabi, as well as ‘Rakan’ and ‘Alexis’ projects in Dubai,” he added.

The company recently started works in the second phase of ‘Rakan’ towers that provide studio, one and two-bedroom apartments at competitive prices starting from Dhs280,000 for the studio, Dhs390,000 for one-room apartments and Dhs600,000 for the two-room apartment. The first phase of Rakan Lofts, which was launched at the end of last year, includes 349 residential villas. Prices start from Dhs575,000 for a two-storey one-room townhouse and Dhs895,000 for two-room townhouses.

Suleiman noted to the availability of apartment units in the ‘Rakan’ project, which reflected diversity and contributed to attracting new customer segments, in light of the distinguished location of the project in the ‘Dubailand’ area. He confirmed the sales of first stage entire units, and 70% of the second stage.

Suleiman indicated that the company was interested in planning a number of innovative promotional offers that took into account the real estate market conditions at the current time, while reducing profit margins, which boosted sales. One offer includes a 10% discount of the10% down payment of the property’s value, compared to a 5% discount set before. Another offer includes paying 15% only as a down payment then 85% upon handing off. Discounts are also made on some units when purchasing in cash, abiding to the rules of the relative authorities, when payments are put in an “escrow account”. Suleiman added that the company was keen to follow up the customers conditions during these exceptional situations, as the termination of transactions was extended from 3 to 6 weeks, as well as taking into account the conditions of defaulters, which contributed to enhancing the buyers’ confidence in the company.

He also stressed the company’s keenness to retain its skilled labor, no employees were laidoff, and there was no cut in salaries in light of the stability of the company’s business during the COVID-19 crisis.

He noted that the contractors who implement the company’s projects work under the Group’s umbrella, which seamlessly boosted the works during the crisis, and made a shield against the lack of construction skills.

Suleiman pointed out to the diversity of buyers in the company’s projects, showing that UAE nationals make 65% of buyers in Abu Dhabi, and 35% of projects in Dubai.

He confirmed strong sales of the “Alexis Tower” project in Downtown Jebel Ali, Dubai, which provides 370 luxury housing units, as well as ‘The Gate’ project that provides 463 housing units in Masdar City, whereas ‘Al Maryah Vista’ project on Al Maryah Island, includes 772 units.