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.

RERA Audit performed on Dubai Property Firm comes Clean

Al Fajer properties successfully came out of the independent third party audit with RERA support. This Dubai property firm recently went through a construction audit which was voluntary and the audit was carried out by RERA. Al Fajer got a clean chit for its construction and they are pleased to announce that their performance can now be measured by a well established construction standard thereby; highest level of transparency will be maintained for all the projects under this property firm. The result of this audit undertook by Al Fajer confirms that the construction being carried out at phase 1 has been completed to about 80 percent and 15 percent has been completed on phase 2.

The official RERA website is the source where the progress of the project can be monitored. Company’s restructuring was started with managerial restructuring, followed by a financial restructuring which strengthened the balance sheet as a result. Phase 3 involves strengthening the operational capabilities of the company and removing the inefficiencies. Due to this operational excellence AFP, has now become number one developer in Dubai which delivers highest level of compliance.

President of Al Fajer properties, His Highness Sheikh Maktoum bin Hasher Al Maktoum said: “Often times in the past, some companies in the sector, were led by brokers and sales agents who did not adhere to sound business methodologies as it was very easy to sell real estate due to the excessive demand in the market. However, today Dubai like any developed economy is returning to fundamentals Therefore, companies that have a strong focus on management and performance as their core competencies are the ones that will excel in these current market conditions. I am confident that we will continue to deliver measurable results through our performance and dedication.” His Highness further commended on RERA’s proactive approach for attaining full transparency in line with its aspirations and clearly mentioned goals as far as the real estate sector is concerned.