Cayan launches Dh1 billion project in Dubai

Cayan Group, the developer of the Cayan Tower, the world’s tallest twisted tower, will spend Dh3.5 billion on building three projects in Dubai and Saudi Arabia, the company chairman said on Sunday.

The developer will commence sales in Cayan Cantara, a twin-tower development in Dubai, this week and will soon start work on two projects in Riyadh, company Chairman Ahmad Al Hatti said.

“This is the best time to invest in Dubai as this is the time for growth with prices peaking in 2018. The market here has matured and prices remain competitive.”

Cayan Cantara in Umm Suqeim area will includes a 38-storey hotel-apartment tower and a 42-storey branded residential tower, costing Dh1 billion. The project is set for completion by mid-2018.

“We want to ‘shake’ the market with this project. We believe we are providing something new. Usually, it is known that high quality comes with high prices and if it is low prices it means low quality.

“We are mixing this formula particularly  for this project and we see ‘smart’ investors are looking for high quality at very good prices.

"We released a limited units during a pre-launch to test the response of our loyal investor base and we received more than what we had anticipated for,” he revealed.

The Dubai project is being financed through a fund that will be managed by Shuaa Capital.

In Saudi Arabia, the developer will spend about 2.5 billion riyals on two projects – both planned in Riyadh.

The first one involves selling of “serviced” land plots (106 residential and seven commercial plots) in Samaya project located in Erga, Riyadh, while the second project is a 15-storey office tower on King Fahad Road, which will also serve as the company’s new headquarters.

In March, Moody’s Investors Service said the slowdown in the market was “positive for the long run” and does alleviate the “potential overheating” though prices could fall 10 to 15 per cent in 2015.

The ratings agency said the Dubai government’s plan to upgrade the city for the Expo 2020 through infrastructure spending and encouraging foreign investments in various sectors would provide market support over the next five years.

Dubai is the host of Expo 2020 that will run for a period of six months, starting October 20, 2020 till April 10, 2021.

Last week, the government announced extension of a Dubai Metro Red Line to World Expo site, which is set to become operational before 2020.

Follow Emirates 24|7 on Google News.