Tueday August 11 2009

"We have done a price adjustment of 10 per cent for units sold in our projects during the peak of 2008 as construction costs now have come down. We have passed on the benefits to our customers," said Mehdi Amjad, Chairman of Omniyat Properties.

The developer yesterday began handing over residential units in its Dh800 million The Square project in Al Mamzar area of Dubai.
The mixed-use leasehold development, launched in 2007, comprises nine low-rise buildings surrounded by 6,000 square metres of landscaped garden and water features. Phase one consists of residential complex comprising seven low-rise residential buildings with 544 units consisting of studio, one-, two- and three-bedroom as well as garden apartments. "This is the second project that we are delivering to investors this year after our Bayswater project in Business Bay."

The second phase will consist of 144 commercial units and offices, which will be delivered by year-end followed by completion of 180 serviced apartments in the first quarter of 2010. Mövenpick Hotels & Resorts will operate the serviced apartments.

Omniyat plans to replicate the concept of The Square locally as well as globally.

"We have built a unique development at low cost. We want to replicate the design and concept in other places and other markets."

Richard Lambert, Sales and Leasing Manager, Omniyat Properties, said the company through its property management arm will be leasing the units on behalf of the owners with studios expected to be leased for Dh40,000-50000, one-bed for Dh60,000-70,000, two-bed for Dh80,000-90,000 and three-bed for Dh110,000-120,000.

In November 2008, the company framed a strategy to deliver its nine projects over the next three years. The third project to be delivered in 2009 will be One Business Bay in Business Bay area.

In April, Amjad told this newspaper it will deliver Pad and Binary in 2010, Gemini by the first quarter of 2011, Octavian and the Opus towards the end of 2011.

Omniyat has sold more than 85 per cent of its property portfolio, he had said.

"We have already sold more than 85 per cent of the projects and over 50 per cent of it [payments from buyers] has been collected. This has given us a solid platform to focus on delivery and construction."

The developer has put expansion plans on hold for the time being. "We have a development in Bahrain and are looking at a few developments outside in consultation with our partners. It is a matter of timing and we do not see 2009 as the right time. We will look at global expansion in 2010 and beyond. Today the world is consolidating and so we to had to change our strategy from growth to consolidation," he added.

Source: Emirates  Business 24/7