Provided by Hadeel Al Sayegh and Luke Tyson
Dubai (Reuters) -in a moon, famous for its desert transformation of the panorama, the creators take the process of building the process of recharging the real estate boom and maximizing cash flows.
More and more of the main creators of the UAE are setting up internal contracts firms, relying on third party contractors after a long time. This step seeks to increase the control of construction schedules, expenditure and quality standards, and finally to ensure a larger share of the profit, although it can also pose a risk.
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The Emaar Properties, which has developed Burj Khalifa, has developed a Rukn Mirage according to his subsidiary Mirage, a spokesman told Reuters. Emaar joins creators such as Samana Developers, Ellington and Azizi, all of which have been released in the past two years.
Arada, Prince Khaledo Bin Alwaleed bin Talal al Saud, also confirmed in the report that they acquired part of the Australian contractor this year and plan to integrate it into the UAE until 2027.
Post occurs when Dubai real estate increases: prices have increased by 70% in four years to 2024. And the government plans to increase the population to $ 7.8 million. By 2040
The start of the propheration increased by 83% by 2024, although industrial data shows 23%.
Boom has led to a new influx of employees, including employees on migrants, mainly from South Asia, and the turnover of expatriate employees is high. It also caused fear of recession in the sector, which remains very important to the UAE economy.
The developers are trying to attract proposals of external contractors, among the strong competition.
Initially, Samana developers planned to distribute 20% of their projects to their new internal hand, which began in September. 80-90% of its new projects are now being done internally, Reuters told Imran Farooq, CEO.
“We have received 25 or 30 contractors offering the project earlier. Today you have a hard time getting two or three,” Farooq said.
Meanwhile, Emaar takes a hybrid approach. Although some projects, such as recently published dwelling, will carry out their internal construction hand Rukn Mirage, they will continue to pass others, said one of them, founder and CEO Mohamed Alabbar said.
The developers also use debt markets to finance land purchase and operations, as billions of Dirham buyers’ payments remained conditionally before the transfer. The funds are only spent after the final inspections and the one -year delivery grace, the buyers may claim a refund.