Al Mazaya Holding, Kuwait-based real estate developer, has recommenced work on 67 “suspended” units and buildings in The Villa, Dubailand and Queue Point, Liwan project, respectively.
“We have already started work on building 67 ‘unsold’ villas in Dubailand, which we hope to start selling once they have reached very close to completion,” Khaldoun Abdul Kader, Executive Vice-President , Dubai Office Operations, Al Mazaya, told Emirates 24|7.
Citing, “huge” demand for medium-sized villas (3,600 square feet to 4,000 square feet), Kader said they we hoping to complete construction in a year’s time.
“The units, however, will be released in phases. If not sold, the company plans to lease them as they have done with chunk of their stock in The Villa project.”
On the Queue Point project, Kader said few buildings were complete and ready for handover, but the process has been delayed due to lack of infrastructure.
“We have a contractual obligation and we will be developing majority of the buildings, but at a slower pace. Handover will be in phases.”
The Villa project comprised 520 residential villas, and a majority of them have been completed and handed over.
The Queue Point development consists of 44 plots in the Liwan master plan (within Dubailand), 37 of which will form residential buildings and seven were set aside for office, retail and commercial use.
CB Richard Ellis pointed out late last year that new villa developments lacking community facilities were experiencing greater pressure on lease and occupancy rates.
Al Mazaya earlier said it has been able to solve 70 to 80 per cent of its problems in Dubai during the last 18 months.
“We gave began to notice some signs of demand on real estate units in Dubai by international companies, a demand that was absent from the market during the last three years.
“Yet it is conditional demand by the international firms, and even though the current relatively weak demand is a good indictor in the present time,” it said.
Rashid Al Nafisi, company Chairman, said Al Mazaya was able to deliver its real estate projects inside Kuwait and abroad and had paid a large part of its obligations to companies, investors and individuals, in 2011.
Naif Al Awadi, CEO, Al Mazaya Holding, said that they had made a quality leap in operations in the last two years, with most of their projects based in Dubai.
“We have reduced our obligations and delivered three times more projects than what we used to deliver annually during the previous years.
“This achievement reflects the executive management's willingness to minimise obligations and generate sustainable returns," he said.