Dubai 'middle income housing robust'
Dubai, June 17, 2009
The middle income housing segment remains robust in Dubai despite the property prices having tumbled down by as much as 35 per cent since the start of 2009, said an industry expert.
“There is still a reasonable demand for middle income housing,” stated Ashok J. Galgotia, chief executive officer of Triveni Builders and Promoters Limited, developers of the Dh80 million ($21.7 million) middle income residential development in Dubai Land, La Fontana.
And although Dubai’s Real Estate Regulatory Authority (RERA) has announced a number of project cancellations – more than half and valued at $582 billion, according to the agency - Galgotia is undeterred.
“La Fontana has started its construction, and has never been in danger of being cancelled. The project is supported by a company that has substantial capitalization and remains competitive despite the current property slowdown,” he stated.
Furthermore, for a property project to be cancelled, Rera’s special committee bases its decision on its own analysis, a request from developers to cancel, or through complaints to the watchdog from project investors.
“None of that applies to La Fontana and the project is continuing as envisioned,” Galgotia pointed out.
'In fact, the six-storey low-rise building located in the Arjan Master Community in Dubailand, a one-of-a-kind community that promotes nature, greenery and a family-first, amenity-rich lifestyle is still a hot property among those on the look out for residence to move into,' he added.
Triveni has put together a compelling value offering in La Fontana, which offers a choice of 105 units comprising studios, one-bedroom and two-bedroom apartments ranging from 352 sq ft to 1,219 sq ft, all surrounded by calming greenery and judicious use of light and space.
And while property prices have tumbled down as much as 35 percent since the start of 2009, Triveni is maintaining a status quo on its current offer, with prices ranging from Dh498,600 for studios to Dh1,315,900 for two-bedroom apartments.
'There is no need to slash prices, because the best thing about La Fontana is its value-for money location,' Galgotia remarked.
'Prospective buyers appreciate the value they will get in return for their investment. Besides the amenities, its posh location within the prestigious Tatweer Head Quarter just off Umm Suqueim road complex puts it within the sphere of what is going to be commercial, leisure and entertainment hub in the city,” he added.
He said the construction is in full swing since May 2009 and the project will be delivered just after Eid Holidays of 2010.
'The change in completion schedule was caused by a slight delay in the provision of permanent power and water supply from the master developer of the Dubailand community, Mizin,' he explained.
Triveni Builders is a subsidiary of Triveni Group, which was founded in 1993 in the UAE as a developing engineering company involved in electrical and mechanical engineering products.
Recently, Triveni Group has appointed Al Shafar National Contracting (ASNC) as the general main contractor for La Fontana.-TradeArabia News Service