Dubai developer Deyaar is due to deliver four major projects this year, including three towers in Business Bay, one of the emirate's hardest hit areas during the property downturn.
The projects, which include Fifty One @ Business Bay, the Burlington, Oxford Tower — all commercial properties located in Business Bay — and Oakwood Residency, a residential property located in the International Media Production Zone, are 90 per cent sold and clock in at a total Dh1.5 billion.
Fifty One @ Business Bay will be the first to come online in February, followed by Oakwood Residency in March. The last two commercial projects will be delivered in the second half of this year. The projects will deliver a total of 1,080 residential and commercial units.
Analysts told Gulf News yesterday that the news could prove positive for Business Bay, an eight million-square-foot development that had slowed down during the economic downturn. The development of infrastructure, roads, power and landscaping has progressed slowly.
"The infrastructure development is going to be going on for a number of years as there are various bridges and road links that still need to be built. Wherever new buildings come on and local road [networks] develop, [there will be] progress," said Matthew Green, head of research at CB Richard Ellis, a property consultancy company.
"It is this lack of infrastructure that means occupiers still shy [away from] moving in. This is offset by the fact that rents are significantly lower than others around the CBD."
In a statement yesterday, Saeed Al Qatami, acting Deyaar chief executive officer, said: "The hallmark of Deyaar's success and indeed one of its key differentiating factors amidst these challenging conditions has been its commitment to its customers and focus on high-quality real estate projects whose value as an investment-grade product will endure over many years."
Last year, Deyaar announced a net profit of Dh44.4 million for the first six months ending June 30.
The results were a positive boost after a loss of Dh243 million during the same period last year.
The main reason for this growth was the completion and handover of their projects in Business Bay.
In April, Deyaar handed over its residential projects — Mayfair Tower, Mayfair Residency and Clayton Residency — and its commercial property, Metropolis Offices.
In a bid to encourage buyers, Deyaar teamed up with Tamweel, the UAE-based Islamic home finance provider in September 2011 to jointly offer ready units at four Deyaar projects in Business Bay at an optimal flat rate — with no additional fees from either the developer or the finance provider. These included Clayton Residency, Hamilton Residency, Mayfair Residency and Mayfair Tower.