Abyaar plans Dh15bn Dubai projects
Abyaar Real Estate Development will soon launch projects worth Dh15 billion in Dubai to bring the total value of its developments to Dh40bn by 2010, a high official of the company told Emirates Business.
Marzooq Rashed Al Rashdan, Vice-Chairman and Managing Director of Abyaar, also said the company already has projects worth Dh25bn in the emirate, which were launched in 2007.
Abyaar was established as a partnership between Kuwait's Aayan Leasing and Investment Company and the Al Rashdan Group. Al Rashdan said Abyaar's first project in Dubai, a freehold villa project in Jumeirah, is due to be delivered to buyers next year. Abyaar has entered into a partnership with Tecom to construct residential and office towers of more than 70 floors, he added.
Abyaar has also started construction of the residential Venti Quattro Tower located in Dubai Marina. In addition, it is executing two real estate projects in co-operation with Madaen Real Estate at a cost of Dh3bn in Nad Al Shiba and Dubai Marina.
Al Rashdan said the reason behind the company's decision to raise its investments in the real estate sector in Dubai to Dh40bn is attributed to the new laws issued by the Dubai government, most prominently the Off-Plan Property Sales' Registration Law and the Escrow Account Law. These have regulated speculations, supported the market and upheld the rights of investors and buyers, he said.
"Our point of view as a property development company in Dubai is that we find speculation damaged the real estate market because it increased the prices in a way that was unaffordable to final buyers and that led to what is called real estate recession," Al Rashdan said.
He said the aim of the registration law is the organisation of all property purchase and selling operations in Dubai in such as way as to limit the increase in prices.
Al Rashdan lauded the efforts by the Land and Property Department and the Real Estate Regulatory Authority in Dubai. He said the two institutions are playing vital roles in the application of the escrow law, which makes it mandatory for property developers to open escrow accounts for each project to deposit funds collected from buyers.
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