Emaar launches ‘value housing’ unit
Dubai, October 24, 2011
Emaar Properties, Gulf region's largest land and real estate developer, has launched its wholly-owned subsidiary, Dawahi Development, a developer of ‘value housing’ projects within full-service community developments.
Dawahi Development will function as a separate entity with a dedicated management team and professional staff members focused on value housing projects across the Arab world.
Led by its vision to become the region’s leading developer of integrated communities that meet the aspirations of Arab youth and their families, it will develop ‘value homes’ at attractive price points in key emerging markets across the Mena region, while also creating robust employment and business opportunities for the local population, a statement said.
The current housing shortage in some of the fastest growing cities in the Middle East alone is estimated at over 5 million units. Arab governments have announced investments of over $150 billion in middle income housing projects, to address the demand. Dawahi Development will principally address the burgeoning demand for value housing in the region.
Mohamed Alabbar, chairman of Emaar Properties, said: “Emaar Properties has set a solid track record in the successful development and timely delivery of real estate projects across the Arab world. While Emaar will continue to focus on the ‘affordable luxury’ real estate sector, Dawahi Development aims to provide management, master development design incubation and programme management to develop ‘value housing’ projects across the region.”
“It will leverage Emaar’s competencies to create a greater volume of value homes through a unique supply chain management strategy, to ensure mid-price points. This new initiative complements Emaar’s strategic long-term outlook to add value for our stakeholders by leveraging growth opportunities in emerging markets. We are thankful to His Highness Sheikh Mohammed Bin Rashid Al Maktoum,” he added.
Alabbar said that Dawahi eventually establish operations across the Levant and wider markets. “The cities in the emerging markets of the Mena region will account for the largest share of future urbanisation initiatives. Led primarily by the emerging middle class, these cities face a monumental housing deficit.”
“The number of families in the region with an annual income of over Dh100,000 ($25,000) is expected to double to $28 million by 2025. They will require quality homes and modern amenities that suit their lifestyle aspirations. The public sector alone cannot bridge the gap for value housing across the wider region – which is why we have launched the Dawahi project.”
“With it, we are creating a new category of homes and communities that provide value to young families. This new category can be defined as the mid-price point housing,” Alabbar said.
The value housing projects are envisaged as modern, full-service communities featuring the full spectrum of lifestyle amenities and utilities. Its communities will have educational institutions, healthcare centres, retail outlets and restaurants, community and sports centres, mosques and leisure options. The prices of homes within these communities will vary from market to market.
Many of these amenities will be operated by local small and medium enterprises and entrepreneurs, making the communities extremely appealing places to live and work, especially for Arab youth. “These upcoming communities will be self-sufficient with good infrastructure, including road networks, seamlessly linking them with the wider urban environment,” he said.
The development will support job creation in the housing and construction sector through a unique approach defined as ‘Education for Employment’, including specialised academies that will provide vocational training to carry out skilled roles in the projects.
Based on a sustainable business model, Dawahi Development will create economies of scale through partnerships with regional and international contractors, while ensuring that customers receive exceptional value through volume aggregation, high-quality design, and efficient engineering and operating processes. – TradeArabia News Service