Thursday, September 06, 2007

UAE developers setting a new trend by eyeing European markets

More numbers of property developers in UAE are eyeing Europe for further expansion and to establish their presence, as the land prices there are comparatively reasonable.

Emaar was the first company to expand outside the UAE, followed by Nakheel and Damac.

Currently, Al Manal Development for instance, is working on its second project in Geneva, the County of Cessy. Similarly another Dubai-based developer, who specializes in high-rise buildings is said to have drawn plans to enter the Romanian market.

It is said that even Sheffield Real Estate, which has already completed Dh.500 million worth of projects and have taken up another Dh.3billion worth projects within UAE, has decided to try its hand in the eastern European market. The Managing Director of Sheffield, Abuali Malik Shroff, has said that his company is currently on the look out for land in those countries to develop condominiums and hopes to begin construction next year. He added that the land prices in these countries are reasonable without much legal issues, and one gets to purchase directly from the private parties or the government, and there will be a strong demand for good projects during the coming years.

However, Shroff quoted that he only plans to invest about $250million to $300million over a five year period in the eastern European market, and that his investments are not likely to be long-term.

Although Europe is the new trend for UAE developers, the property companies have been trying to establish their presence for quite some time in markets such as India, Egypt, Pakistan, Morocco and Saudi.

This newfound appeal towards European markets is mainly due to the fact that most of these countries will join the European Union, as the European Union is in the process of expanding. Bulgaria and Romania are already included into the Union.

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