Damac signs 10 new projects worth Dh2bn for 2009:UAE's largest developer

[LahoreEstate]

Friday, March 20, 2009
Damac Properties, UAE's largest private sector developer, has announced plans to sign Dh.2bn worth contracts this year, which includes construction of 10 new towers, to take advantage of the current low construction costs and overheads.

A top official of the company revealed that towards the end of this year, the company will sign contracts worth Dh.2bn for construction of 10 projects.

The cost of construction materials have declined considerably over the past couple of months, owing to lesser demand. Contractors are now in search of fresh projects, as several projects have been shelved due to recession. Few of them are even willing to work at cost prices, to save jobs and continue their businesses.

This situation is an opportunity for developers. Developers who had been selling properties at higher prices till last year, can generate more profits by signing new projects now, when constructions costs are lower, the official said.

The Damac CEO, Hussain Sajwani, says "We are well aware of the market condition, and hence are focusing on deliveries. We would like to begin construction of all remaining projects, before the market rises by early next year."

The company already delivered 2300 units during the last six months, and hopes to deliver 7,100 units more by the end of 2010. The company has already sold 10 projects and plans to deliver 25 more projects, by end of next year.

By adhering to timely deliveries, the company plans to bring back investor confidence in the market. According to Sajwani, the market may see an upturn by the end of this year.

A recent survey by Ernst & Young, on companies managing their businesses in the event of global economic slowdown, about 74 percent of the companies were found focused on "securing the present".

Although, it may sound perverse, the period of crisis can actually be an opportunity to drive change more rapidly and effectively, than during a period of prosperity, the report suggests.

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