The UAE property is likely to see demand-supply balance this year, the chairman of Shaikhani Group – an international business conglomerate – has said.
Amid expectations that the economy will grow by 3.2 per cent this year, Abu Baker Shaikhani also revealed that the company plans to go ahead with construction of all launched projects worth Dh1.34 billion.
“We are confident that the Dubai Government is taking all the necessary efforts to drive back the real estate sector to its level in the past couple of years,” said Shaikhani, adding “We are continuing our efforts to complete our projects within their specified timeframe, in line with our commitment to our investors.”
The Shaikhani Group reported that construction work on its Champions Tower I (CTI), Champions tower II (CTII) and Champions Tower III (CTIII) is witnessing continuous progress.
The company revealed that it has already completed 14 levels of CTI, and eight out of 13 floors and seven out of 15 floors have been completed for CTII and CTIII respectively.
Moreover, it has completed nine out of 10 storeys in Cambridge Business Centre (CBC) project, its commercial venture in Dubai Silicon Oasis.
“Amidst the challenges of the current crisis, it is important to take a step back and a closer look at the big picture, identify the opportunities to make out the best route towards recovery,” the chairman said.
The company had earlier announced that it is speeding up the works on Gardenia I & II and Frankfurt Sports Tower I, and has already handed over major contracts to several reputed contractors.
As part of its rebranding initiative, Shaikhani Group also unveiled its flagship subsidiary company – Shaikhani Developments, which offers a range of services within real estate development, construction and project management, including residential, commercial, and mixed use projects within the UAE.
Mortgage rates slash to boost real estate market
Meanwhile, banks and finance companies in the UAE are finally reducing lending rates for homes following high mortgage rates, a spot check reveals.
Among the lenders that have slashed mortgage rates for new and existing clients are Amlak, one of the largest Islamic mortgage providers. The profit rate of Amlak has dropped to 6.9 per cent for few of its existing clients.
The move is expected to broaden buyers base and boost the sagging fortunes of the real estate sector in the country, analysts say.
“Several banks have reduced their charges and have increased their loan-to-value ratio, since the start of the year,” said Dean Biddulph, Senior Mortgage Advisor, Independent Finance, a Dubai-based company offering financial services.
Both Amlak and Tamweel are currently ready to lose part of their profit margin to gain the advantage of reducing their non-performing loan figures as much as possible.
The companies believe that by slashing mortgage rates, the mortgage holders can keep away from missing out on their monthly mortgage payment.
Few other banks offering lesser mortgage rates are HSBC Home Finance, Standard Chartered UAE, and Mashreq.
“Although this comes as good news to property developers, who are to release thousands of completed property units in the UAE market this year, the changing economic scenario has kept the lenders and borrowers focused on low-risk investments, with completed properties being their first choice of investment,” says Faisal Iqbal, Head of Secured Lending Business, Barclays.
Consider also reading:
Defining the ‘new normal’ for UAE real estate
Gulf property investors seek ‘stable’ markets
Bahrain's property market seen static in Q4: report
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Although this comes as good
Although this comes as good news to property developers, who are to release thousands of completed property units in the UAE market this year, the changing economic scenario has kept the lenders and borrowers focused on low-risk investments, with completed properties being their first choice of investment alojamiento roma