Dubai developer Azizi expects the emirate’s property market to bounce back early next year, as it looks to raise $300 million (Dh1.1 billion) from a sukuk issue to finance its expansion.
Chief executive Farhad Azizi said there was an increase in the number of inquiries from potential buyers in Dubai.
“We are not just being optimistic out of thin air. We ... are hopeful that [the interest] will increase when it comes to September and October, when schools open.”
The developer claims to be selling five to six apartments a day, compared to just one apartment a week in March and April when movement restrictions to curb the spread of Covid-19 were at their peak.
Most of the buyers are residents but Mr Azizi said inquiries were coming in from Saudi Arabia, Nigeria, India and Pakistan.
Azizi Developments has 54 residential projects with a total investment of Dh5bn across the emirate in districts such as MBR City, Palm Jumeirah, Jebel Ali, Dubai Sports City and Dubai Healthcare City, among others. It plans to deliver 3,000 property units this year.
Mr Azizi said there was a lot of interest in mid-range properties that cost less than Dh1m.
“By next year, hopefully there will be a treatment for Covid-19 and things will come back to normality,” he said.
Expo 2020 Dubai, which was postponed to October next year, is also expected to contribute to the recovery of the property market, he said.
The developer “went through a big panic moment” at the onset of the pandemic, Mr Azizi said, reducing staff salaries by 25 per cent to preserve cash.
“We also reduced our expenses which were non-essential. We have not done layoffs and did not terminate staff.”
The developer recently began to hire staff as demand increased after movement restrictions were eased. It recruited 60 people last month and will hire another 40 by the end of July, Mr Azizi said.
It intends to invest Dh1bn in four new Dubai projects this year if demand continues to grow, and expand into Abu Dhabi where a Dh1bn residential project is on the cards. There are also plans to open an office by the end of this year in the capital.
Mr Azizi said the developer is looking to move into the contracting business, “at a level of managing subcontractors but not deep-diving to the smaller details.”
TTo fund its expansion, the company plans to raise $300m through a bond issuance, Mr Azizi said.
“People feel more comfortable investing in property than investing elsewhere,” he said. “[They] have fear of inflation [and] a fear of investing in the stock market or luxurious products which they may not use, but when it comes to a home, it is an asset they can use it the long term and it gives them a lot of comfort.”
The recent stimulus package announced by the UAE government will also help Dubai’s property sector to recover quickly, he said.
The Emirates introduced Dh256bn in stimulus measures to help offset the impact of Covid-19 on the economy.
The measures consist of zero interest funding to encourage banks to lend more.
The government also launched several other initiatives, including discounted utility bills and waivers of fees.
Dubai’s property market slowed, partly due to the drop in oil prices that began in 2014 and an excess supply of residential units.
The pandemic placed additional pressure on the sector as the number of on-site property viewings dwindled.
However, in an interview with Bloomberg last month, Damac Properties chairman Hussain Sajwani projected a recovery next year on the back of Expo 2020.
Last week, Rizwan Sajan, the chairman of Dubai's Danube Group, also sounded upbeat. He expects the temporary slowdown to lift once oil prices climb above $50 per barrel.
"This drop in oil prices can be ascribed to the world being under partial lockdown," he said. "So, the prices per barrel would soon go higher than $50 once [the] economy of each country is reinstated."
Brent, the international benchmark for crude, closed at $41.02 on Friday, while WTI, the gauge for US oil, closed at $38.49.
Name: Colm McLoughlin
Country: Galway, Ireland
Job: Executive vice chairman and chief executive of Dubai Duty Free
Favourite golf course: Dubai Creek Golf and Yacht Club
Favourite part of Dubai: Palm Jumeirah
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Dubai World Cup draw
1. Gunnevera
2. Capezzano
3. North America
4. Audible
5. Seeking The Soul
6. Pavel
7. Gronkowski
8. Axelrod
9. New Trails
10. Yoshida
11. K T Brave
12. Thunder Snow
13. Dolkong
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
The biog
DOB: 25/12/92
Marital status: Single
Education: Post-graduate diploma in UAE Diplomacy and External Affairs at the Emirates Diplomatic Academy in Abu Dhabi
Hobbies: I love fencing, I used to fence at the MK Fencing Academy but I want to start again. I also love reading and writing
Lifelong goal: My dream is to be a state minister
RESULTS
6.30pm: Al Maktoum Challenge Round-1 Group 1 (PA) Dh119,373 (Dirt) 1,600m
Winner: Brraq, Adrie de Vries (jockey), Jean-Claude Pecout (trainer)
7.05pm: Handicap (TB) Dh102,500 (D) 1,200m
Winner: Taamol, Connor Beasley, Ali Rashid Al Raihe.
7.40pm: Handicap (TB) Dh105,000 (Turf) 1,800m
Winner: Eqtiraan, Connor Beasley, Ali Rashid Al Raihe.
8.15pm: UAE 1000 Guineas Trial (TB) Dh183,650 (D) 1,400m
Winner: Soft Whisper, Pat Cosgrave, Saeed bin Suroor.
9.50pm: Handicap (TB) Dh105,000 (D) 1,600m
Winner: Hypothetical, Mickael Barzalona, Salem bin Ghadayer.
9.25pm: Handicap (TB) Dh95,000 (T) 1,000m
Winner: Etisalat, Sando Paiva, Ali Rashid Al Raihe
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
hall of shame
SUNDERLAND 2002-03
No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.
SUNDERLAND 2005-06
Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.
HUDDERSFIELD 2018-19
Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.
ASTON VILLA 2015-16
Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.
FULHAM 2018-19
Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.
LA LIGA: Sporting Gijon, 13 points in 1997-98.
BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66
Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
UAE%20ILT20
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Killing of Qassem Suleimani
