Arady, an Abu Dhabi-based private equity group focusing on the property sector, will cut prices at The Helix towers on Reem Island by about 20 per cent to pass on savings from lowered construction costs to buyers. "The market needs to be sustainable and the new prices reflect that," said Jassem Saleh Busaibe, the new chief executive of Arady. "We are lucky we did not tender the project yet, so we could pass on the savings to buyers." Mr Busaibe said the company would also change the payment plans so they adhered to construction milestones. The move is among the first from developers in Abu Dhabi to address the slowing market. Prices in the capital have fallen an average of 15 per cent in recent months, according to property brokers. Last week, Bloom Properties said it would let buyers revise their payment plans and renegotiate the prices of its Bloom Gardens project to reflect falling construction costs. "This is not taboo for us," said Hani Shammah, the chief executive of Bloom Properties. "We have revisited the prices in line with the construction costs. We are passing on the declining construction costs to the end-user." Mr Busaibe said he could see a new period of opportunities for his two-year-old investment group, especially in Abu Dhabi. "Despite the current market, there is still an undersupply of housing and hospitality," he said. "There are opportunities in turbulence... Building a good project for end-users will still give you a reasonable profit." The market would see some major changes this year as the credit squeeze and lower sales hit developers, he said. "A lot of people are going to have to go back to the drawing board. The parameters have changed." Arady is raising money for a US$550 million (Dh2.02bn) Abu Dhabi development fund called Al Reem Fund LP. The fund would spread its investments across the property economy, but focus on niches that were undersupplied, Mr Busaibe said. The investment group is in talks with several major developers about buying up plots on Reem Island and Al Raha Beach. Arady is also expanding its direct investments in infrastructure and core services in Abu Dhabi. One of its larger projects is a joint venture called NCP Gulf Services, which has been awarded a contract from the Abu Dhabi Department of Transportation to construct and manage more than 70,000 street parking spaces with meters. Initially, 2,500 parking meters will be installed on the most congested streets. Mr Busaibe said he also planned to build multi-storey car parks around the capital to relieve traffic. Arady, a Shariah-compliant group, is mostly funded by sovereign wealth funds and high-net worth businessmen and dignitaries in the region. Sheikh Hamdan bin Mubarak, Minister of Public Works, is its chairman and Ali Lakhraim is the executive vice chairman and founder. email@example.com
- Sun-powered Falcon Island development launched in Ras Al Khaimah
- Aldar announces plans to build 2,300 homes worth Dh5.7bn for Emiratis
- Emaar launches second phase of Mulberry at Park Heights in Dubai
- Arabtec’s $40bn project in Egypt to open wave of UAE investments
- Arabtec wins $40 billion housing contract in Egypt
- Deyaar unveils Dh900m hospitality and housing project in Dubai’s Business Bay
- Most Viewed
- Most Commented
- Most Viewed
- Most Commented
- Federal Traffic Council approves proposal to lower UAE driving age
- Men ripped off woman’s clothes in bathroom, Abu Dhabi court hears
- Ties no longer mandatory for Dubai cabbies amid safety concerns
- OSN blames rival for TV sport blackout in the UAE as fans will have to buy new set-top boxes
- Live blog: With the emergency workers at Rashid Hospital Trauma Centre
In pictures: India’s health and fitness guru Mickey Mehta
Mickey Mehta, whose client list reads like a who’s who of India’s elite, describes himself as a “holistic health guru” and “a life coach and philosopher”.
In pictures: Top 10 most popular mobile handsets in the UAE
Here are the top 10 mobile handets in the UAE by specific model for the fourth quarter of 2013, according to the Telecommunications Regulation Authority.
Emirates Airline and Qatar Airways defend cabin crew rules
Carriers defend their policies on pregnancy and marriage. Emirates has a policy whereby female cabin crew who become pregnant in the first three years have to leave.
In pictures: Japan three years after the disaster
As Japan marks the third anniversary of the devastating earthquake, the country struggles to rebuild tsunami-hit communities and to clean up radiation from the Fukushima nuclear plant.
In pictures: CeBIT 2014 opens in Germany
CeBIT 2014 got underway in Hannover, Germany with mobile security and encrypted communications some of the topics expected to feature in the spotlight in Europe's largest technology trade show.
Rates report: Latest on UAE loans, accounts and credit cards
Souqamal.com brings you the latest interest rates on banking products in the UAE.