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Al Mazaya Real Estate is out to make a statement — that a developer is able to launch and deliver mid-rise and mid-value properties in Dubai. And it intends to continue sticking to this statement with the launch of a second phase at its Q-Point project in Liwan, part of Dubailand.
Twelve of the mid-rise apartment buildings (in ground plus six storey- and over format) forming Phase I of Q-Point are being handed over, another 12 by May and 14 more in the fourth quarter of this year or early next year. ''What we will see going forward is that demand cycles in the local property market for mid-tier properties in stable mode,'' said Shlash Al Hajraf, acting CEO at Al Mazaya Real Estate.
Units are available in one-, two- and three-bedroom units, with prices starting from Dh500,000 and up to Dh1.4-1.5 million. Market sources have been talking of a shortage of properties in Dh1-5 million category.
For Phase 2, four additional buildings have been confirmed with funding provided by outside investors. The expectation is that six more buildings can be built based on investor support, and a decision to this effect made by the third quarter. Al Mazaya is an interesting case in that it prefers to don the development mantle, build and then transfer the project to the investors.
''In 2007, we did go the traditional way of using own funds to develop projects; but the financial crisis and the need to create an infrastructure first for the development slowed our progress,'' said Hajraf. ''But our primary expertise is in development and that's what we intend to focus more on this time.
''Also, this way we reduce the cost we as a developer have to bear and that's an important consideration to make sure our cashflow remain in positive territory.''
Apart from Dubailand, Al Mazaya will be looking to Jumeirah Village Circle for its version of mid-tier properties. ''These are the two locations where it's still possible to create this category of property despite the ongoing upturn in land values in the city,'' Hajraf said.
For the Q-Point properties, the developer has signed on Dubai Islamic Bank to offer mortgage financing. Talks are also on to bring on board Emirates Islamic Bank as well.
Two brokerage firms, including Harbor Real Estate, have been engaged to sell the units, while Al Mazaya's in-house sales division will also be engaged in the task.
Source: Manoj Nair, Associate Editor, gulfnews.com