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30 November 2023

'Recovery within eight to 12 months'

Memon Investments sees the declining cost of construction as more opportunity in the long term. (EB FILE)

By Staff Writer

Memon Investments, a Dubai-based property developer and part of the Memon Group of Companies, has projected that the UAE real estate market will bounce back within the next eight to 12 months.

The developer has based its optimistic forecast on recent industry findings, which reflect a decline in the construction cost per square foot by an average of 30 per cent since the onset of the global economic crisis.

Memon Investments has also committed to continuing fostering its strong relationships with leading construction companies, in line with its goal to meet the delivery targets for its projects – starting with the Dh75 million Champions Tower I – which is due for delivery by the end of this year.

Industry experts point to the huge drop in the prices of steel, as well as those of aluminium, wood, glass and diesel. The declining cost of labour and supervision due to recent redundancies has also contributed to the dip in construction expenditures, which are now pegged between Dh400 and Dh900 per sqft in Dubai and Abu Dhabi, and to as low as Dh170 and Dh200 per sqft in Ajman.

Amid speculations of further decrease in construction costs in the coming months due to falling oil prices, costs of building materials and transportation expenses, Memon Investments is focusing all its resources on meeting the delivery deadline for all its announced projects.

"In view of the massive correction in the prices of basic construction materials, we are now focusing our strategy on the implications of this development, particularly with regards to the construction and delivery of our launched projects," said Ahmed Shaikhani, Managing Director, Memon Investments. "Our strategic planning and consolidation efforts are being driven by our resolve to stay true to our promises to our customers in the face of this economic crisis. We are proud that our actions are paying off with the steady progress we are witnessing in all our projects."

Memon Investments currently has a portfolio of projects valued at close to Dh1.34 billion, which includes the residential Champions Towers series, the luxurious Gardenia I and II, the Frankfurt Sports Tower I and the Cambridge Business Centre. The developer also announced that it has identified major master developments in Dubai, including Jumeirah Village South, Mizin and Downtown Jebel Ali as locations for its new projects, which will include luxury residential, commercial and mixed-use developments.

"The current adjustments we are seeing in the cost of construction indicate that the industry is becoming healthier, which spells more opportunity in the long-term for those who can withstand these challenging times that the market is facing. It is our goal that by the time the real estate market regains its former vigour we will be among the few developers to have endured the challenges and remained stable. We plan to accomplish this by working hand in hand with our construction partners as we determine the best course of action," Shaikhani said.