Dubai: Investors are buying development delayed and distressed projects
New trend in real estate market: Investors seeking a better-than-average yield in delayed and distressed development projects in Dubai.
Balaji Parthasarathy, Director at Radiant Star, newly created investment division which has attracted nearly $ 40 million for local projects, described the suspended construction projects in 2010-11.
"There are differences between the preferences of investors then and now. In 2010-11 the decisive factor was whether the 70-80% of the project is implemented before going on his way met a problem. Location was secondary. But now the most important thing is that where the project is located. This is what most excites investors ", - said Balaji.
He added that even today you can find construction projects in need of cash inflow in popular urban areas such as Dubai Marina and Business Bay. Recently a high-ranking representative of the Select Group confirmed that the company takes the previously stalled project of the tower in Marina. The only problem may be a regulatory clearances can take a bit of time.
New locations are also included in the interests of investors. Radiant Star has included in its portfolio 18-storey residential building (Riah Towers) in Culture Village and three projects in Jumeirah Village Circle. 156 apartments and penthouses in Riah Towers on average estimated market of 1,400 dirhams per square foot (about $ 4,000 per m²).
Speaking about the prospects of area Culture Village Parthasarathy expressed hope for its great future and noted the fact that developers are beginning to show more attention to it.
