The pilot of Al Furjan

Construction is in full swing at Azizi Developments' eight projects in the community

A Dubai-based private developer has pearls of wisdom to offer property investors waiting on the sidelines for prices to bottom out.
"The economy is going to recover very fast by mid 2017. For a buyer to make a profit and capitalise on quick price appreciation, they need to invest in ready properties now. You cannot wait for a product that will be delivered after many years," says Farhad Azizi, CEO of Azizi Developments.
The company is driving development in Al Furjan with eight low-rise projects. The first phase of residential towers, including the Yasamine, Feirouz, Orchid, Iris and Liatris, have been 80 per cent sold out. Azizi Developments has retained a few apartments in each tower and will eventually lease or sell them.
Although these five buildings had a handover date of December 2015, the developer has kept the Real Estate Regulatory Agency (Rera) in Dubai abreast of all its construction updates.
"There is no postponement as the Rera law allows for a three- to six-month delay. I don't call it a delay if we compare it to other developers whose projects were on hold for over a year. The Rera accepted our justification, after reviewing our report supported by official documents from the main contractor and project consultant along with the technical reasons that caused the 'three-month delay'," informs Azizi.
New handover schedule
The Rera has verified construction progress and amounts in the project's escrow account. The developer has also informed unit buyers about the new handover schedule.
Azizi Developments has also launched around 340 apartments across three residential towers in phase two - Daisy, Freesia and Tulip. These are scheduled to be handed over by early 2017. However, all one-bedroom apartments have been sold out in this phase.
"Our targeted customers are the middle and low income, therefore, our prices and payment plans are tailored to meet their budgets," Azizi adds.
The developer is tapping the affordable luxury segment with prices of one-bedroom apartments pegged at less than Dh1 million, two-beds at less than Dh1.4 million and three-beds (with maid's room) at less than Dh1.8 million.
"The majority of units in phase 2 has been purchased by our existing customers. The kitchen will come fully fitted and has been imported from Italy. We have taken care of small details, for instance, we have marble tops in our kitchen. You will not find a three-bedroom apartment plus a maid's room in Al Furjan, unless you opt to buy a villa," the CEO explains.
Economies of scale
The developer claims it has not passed on the overheads of quality building materials to consumers. Instead, it has leveraged the economies of scale with suppliers. Azizi Developments has retained SS Lootah as the contractor for its second phase in Al Furjan.
Thanking the Rera regulations for reduction of property speculators in the market, Azizi says most unit buyers in his company's projects are end users and, therefore, re-sales have been nil.
Meanwhile, the developer announced that it is developing two fully-furnished serviced apartment projects in phase three at Al Furjan. The Dh480 million project will be the first such scheme in the community and offer over 400 units to investors. UK-based Candice has been appointed as the hotel operator. Contractor KCC has already finished mobilisation on site and the project will be launched by the end of this month.
"Unlike other developers, Azizi Developments has a different, yet well-studied strategy. We prefer to start construction in our projects before the launch and sales process takes place," informs the CEO.
Even on the Palm Jumeirah, where the developer owns two plots, construction has already commenced ahead of the sales launch. It plans to build boutique residences on one plot.
"We have completed almost 25 per cent of the structure on the Palm Jumeirah project," says Azizi.
Biggest sub-developer
Being the biggest sub-developer in Al Furjan, Azizi Developments currently owns 24 plots in the community. It plans to buy more plots during the second half of 2016.
It has also purchased a plot in Dubai Healthcare City, where it is planning a luxury residential project.
Stating his investment credo loud and clear, Azizi concludes: "We expect prices will shoot up once again as we get closer to Expo 2020. This is why we advise our customers to be aware that the decrease in global oil prices will not have a direct effect on the country's economic growth as the UAE government has a plan B in addition to innovation as a key driver of the economy. The Expo 2020 is not the government's only initiative to stir up the economy, but one of many. Time will tell."
Why invest in Al Furjan?
> In case you didn't know, Al Furjan is a residential development located between Sheikh Zayed Road and Mohammed bin Zayed Road, adjacent to Discovery Gardens. It is in the proximity of Al Maktoum International Airport and the Expo 2020 site.
> It is an up-and-coming community. The Dubai Metro will eventually pass through Al Furjan. Nakheel is building a mosque and a retail centre in the community. Roads are already built into the master community.
> "We are not looking at a quick profit. We have good credentials and a lot of projects in the pipeline. We always think of the customer. We give them very good materials. Therefore, yearly maintenance charges will be very low," says Farhad Azizi, CEO of Azizi Developments.
- deepthi@khaleejtimes.com