Emaar Properties has not slowed down on its developments despite increase in construction costs, its CEO said, adding that it is delivering ahead of time.
Mohamed Alabbar, the founder of Emaar Properties and e-commerce platform Noon.com, explained that while construction material costs increased by 5 per cent, he is helping contractors wherever necessary.
“I’m glad contractors are moving on time. In fact, we deliver ahead of time now,” he said during the Bloomberg Invest Dubai event on Thursday.
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The Emirati business mogul said he will tender “a big tower” until the “situation cools down.” While he did not mention the tower’s name, Emaar Properties earlier in the year announced it will launch a tender for the redesigned Dubai Creek Tower Project.
Because the war started around the same time the tender was meant to be issued, plans were delayed. The Emaar founder is withholding tender plans until the geopolitical situation eases, which S&P Global assumes will continue until 2027.
Emaar traffic down
Traffic in Emaar Malls, which includes the Dubai Mall and Dubai Hills Mall, was down by 10 per cent, whereas it was growing 10 per cent in the past five years. “Still, retailers are very comfortable,” Alabbar said.
In his hospitality businesses, he said occupancy was down around 65 per cent, from 80 per cent earlier, which he assured was “fine.”
Source: Khaleej Times