‘Dubai Has Opened The Doors To Global Billionaires, And Developers Must Act Now.’
To ensure that the buyers of its most recent super-luxury projects are end users, Dubai-based developer MAG is increasing the cost of construction. What MAG and its Senior Executive Vice Chairman, Talal Moafaq Al Gaddah, do not want is for investors to buy these properties. Which includes Dh177 million Ritz-Carlton residences on Dubai Creek, and then leave them unoccupied.
“Dubai is welcoming the world’s billionaires, millionaires, and others to come here and make the city their home,” Al Gaddah added. “As developers, it is our responsibility to make sure that the products we create are what these customers want.”
I do not think that working on two multibillion-dollar projects at once in Dubai makes me more risk. Because there are, buyers who want to move here and live there from all over the world. We have sold the majority of our off-the-plan/ready homes, but we still need to build more, now.
“I don’t want to be one of those developers that wait till they get 30-40% of their off-plan payments before starting building.” In addition, if they do not acquire those monies, they should cancel or postpone the project.
“No, MAG will begin construction on our new projects right now.” Everything on the brochure will be provided. On schedule. Even if we don’t find a buyer for our luxury houses right away, we will build them.”
Al Gaddah’s confidence stems from one key factor: the off-plan sales he closed last year. Which resulted in a Dh2 billion cash flow for MAG. That, according to Al Gaddah, makes it easier to make those decisions about building quality and waiting for buyers who will eventually call.
As the year, 2022 draws to a conclusion, demand for luxury real estate in Dubai and the UAE remains strong. There are projects where pricing modifications are made to entice buyers. However, according to Al Gaddah, MAG does not want to be in that race.
Aside from the Dh177 million mansions by the Creek, the developer has also launched the Dh3 billion ‘Keturah Reserve‘ in Meydan. Where top-tier townhouses start at Dh2500 per square foot. It is the most costly townhouse there at Dh9 million, and it is twice as big as anything else, according to Al Gaddah. Even at higher prices, we have buyers. Phase 1 is nearly all gone.
“We are building homes that won’t need the constant maintenance worries that homeowners have had with some developers,” the developer said. Our homes are made to give owners everything they need for 10 or 15 years, without any flaws. Moreover, even longer.
“We have increased our construction costs to Dh650-Dh800 per square foot from Dh350-Dh400 to ensure a certain build.” Whatever the market cycle, our new strategy will remain in place: get the end-users.”
Al Gaddah responded to the question of whether he would be concerned about incurring more costs if demand decreased by saying. “It’s an open market; if we can’t sell, we won’t launch until the market corrects again.” We are a family run firm with no debt and no partners. We think that the impact on the consumer will sustain this sector.
Making Those Expenses Matter
The cost of MAG’s MEP-related construction has “tripled” to about Dh180 per square foot and it is evident in components like the solar panels. The entire house’s filtration system, and other places. With the “Keturah” branding, wellness is prioritized. For Al Gaddah, this entails putting these ideas into action rather than just giving them lip service. The Al Gaddah continued, “What we guarantee you in the brochure will be what the homeowner will get when he moves in.
With 30 million square feet of land bank in the UAE, MAG is currently planning a beachfront development and a tower in Business Bay.
Taking Up Construction
To have a contractor on call for its projects, MAG will not think about purchasing a stake in a construction company. Al Gaddah said, “I don’t see any value for me in doing so – they understand their business and I know mine. It is unnecessary to combine these various competencies.