What is the central focus of the renowned Dubai-based real estate company Deyaar Development PJSC at the moment? Well, it is to construct low-cost housing in the Middle East given that demand for high-end property continues to go down in its domestic U.A.E market.
Speaking on this Markus Alexander Giebel, Chief Executive Officer, Deyaar Development PJSC told Zawya Dow Jones on the eve of the World Economic Forum in Jordan., “We’re assembling a team to carry out research to see if its viable or not. “More mature, developed markets are definitely out so we’d be looking at projects in the MENA region,” he said late Thursday. Deyaar would work with local partners in the country if it has any definite planning to proceed with the plans, Giebel said.
Deyaar is of the largest developers at Dubai’s Business Bay, its real estate ventures span across major growth corridors and prime locations in Dubai, including Dubai Marina, The Waterfront, Jumeirah Lake Towers, IMPZ, TECOM, and Downtown Jebel Ali. The company’s current project portfolio includes multiple mid-sized community projects as well as iconic residential and commercial tower developments.
The company was established in 2002, with a paid up capital of AED 18.375 Million, and has grown exponentially in these years to become one of the leading real estate development companies in the region, with a share capital of AED 5.778 Billion, following its IPO in May 2007.
What makes the company concentrate on low-cost housing? It is the worldwide fiscal crisis that is taking its toll on Dubai’s once-booming property sector where Deyaar is based. The downturn, which started in the fourth quarter of 2008, has so far wiped up an estimated 40% off the average price of real estate in the emirate.
What is more Deyaar’s share price and earnings have been hit hard by the downturn. The company said last month that first-quarter net profit fell 73% to 54.5 million U.A.E. dirhams ($14.8 million). Its shares dropped almost 83% last year.
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