Deyaar Development on Wednesday announced new partnership with Tamweel and pins hopes on recovery in real estate market to increase its revenues from sales, its top official said.
The property developer said it is expecting profitable 2012 as it is focusing on completing existing real estate projects and selling more than 400 units from old projects.
“Based on our results, in the first six months of this year, we expect positive numbers for 2012,” Saeed Al Qatami, chief executive officer of Deyaar , said on the sidelines of a property event in Dubai.
Deyaar , emirate’s second largest developer by market value, posted a three per cent rise in second-quarter profits as it cut costs. It posted Dh18.63 million second-quarter net income compared to Dh18.09 million in same quarter last year, however the revenues dropped to Dh143.5 million from Dh334.3 million.
“We will be profitable and the coming quarters will be similar to the previous ones,” Al Qatami said.
He said the company is also offering customers incentives to prop up sales and occupancy levels at its various projects.
“We are currently selling around 400 units, some of which were owned by Deyaar and never sold. Around 60 per cent of these units were forfeited from clients who could not pay,” Al Qatami said.
He said that Dubai’s real estate market was picking up again after a damaging slump in prices and confidence from a 2008 peak.
“The Dubai market is showing signs of recovery given the increase in demand and investor confidence,” Al Qatami said, adding that stricter rules and regulations for the property market would help stabilise the market further.
“When you activate rules and regulations, you will protect the market from speculators. Something like not allowing owners to sell a unit in the secondary market before paying 30 pct of the total value will stabilise the market.”
The DFM-listed company said it has signed an agreement to provide property management and leasing services to Tamweel owned properties.
Under the agreement, Deyaar ‘s Property Leasing Unit will manage and lease these properties on behalf of Tamweel .
” Deyaar has become one of the most successful and well-respected property management firms in the UAE. Today’s announcement strengthens this position further still, and we look forward to working with Tamweel to maximise returns on their properties,” Al Qatami said.
“As the UAE real estate market witnesses a sustained recovery in both sales and rentals, we considered it to be an optimal time to review the management of the properties owned by Tamweel . Deyaar ‘s proven track record of delivering high occupancy rates made the company a natural choice to manage and lease our properties,” Tamweel chief executive officer Varun Sood said.
Deyaar announced a range of special offers, covering both residential and commercial property, to mark this year’s edition of Cityscape Global 2012.