Distribution of Commercial Space Initiated in Jumeirah by Al Fajer

A Dubai-based developer Al Fajer Properties has initiated the distribution of two million square feet of commercial area across its tower in Jumeirah Lake Towers.

The president of Al Fajer, Sheikh Maktoum bin Hasher Al Maktoum told, “We have already started handing over units in our five Jumeirah Business Centre towers. The second phase, consisting of another four towers, will be completed by the year 2011.The company has self-financed about 88 per cent of its towers.”

Through a discount scheme which was offered to investors in July, the developer raised up to Dh400 million. According to him, “It was very successful as we offered up to 40 per cent of discount to investors. We have used the fund to complete our construction.”He also added, “The Company may witness a default rate of 20 to 30 per cent, he said, adding, "we are OK with it as we have secured funding to complete our projects".

Leasing could be one of the possible options when Al Fajer still has 25-30% unsold inventory.

Asked whether "off plan" market could see a revival, Sheikh Maktoum said: "The off plan market is dead and will not see any revival."

"The market conditions were not conducive by end of March and so companies had temporarily halted construction. But those projects will get completed."

He believes that completed properties will be in big demand next year and so the focus is on completing all the launched projects.

Sheikh Maktoum said sales prices of Jumeirah Business Centre towers in the secondary market have risen by almost 30 to 40 per cent in the last few months.

"During the peak of 2007 and early 2008, prices had touched Dh2, 200 sq ft, but then fell to a low of Dh800 during the economic crisis," said Sheikh Maktoum.