Dubai-based property developer Memon Investments predicts that the UAE real estate market will bounce back in the next 8-12 months. The developer is part of the Memon Group of Companies, and is basing its prediction on industry findings that show a decline in construction costs.
Industry analysts have noted that there has been a recent drop in the price of steel and other building materials. Labor costs have also declined, and construction costs are now estimated to be between AED 400 and AED 900 per square foot in Dubai and Abu Dhabi. Costs are even lower in the other emirates, going as low as AED 170-200 per square foot in Ajman.
Memon Investments is currently focusing its efforts on the delivery of the Champions Tower I in Dubai Sports City, which is due for completion by the end of 2009. Other properties for the company include the Gardenia I & II, the Frankfurt Sports Tower I and the Cambridge Business Centre.
Ahmed Shaikhani, Managing Director, Memon Investments, notes that “The current adjustments we are seeing in the price of construction indicate that the industry is becoming healthier, which spells more opportunity in the long-term for those who can withstand these truly challenging times that the market is currently facing.”
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