Sunday, January 18, 2009

Work on Dubai Festival City to be delayed: Al Futtaim Group

Dubai Festival CityThe developer of Dubai Festival City, Al Futtaim Group Real Estate has delayed works on part of the development, to take advantage of fall in construction costs.

A company spokesman yesterday revealed that the company was being more cautious in reviewing the Dh.11billion residential, entertainment and business hub, where the construction began in 2003 and is likely to be completed in phases over 20 years.

Although the overall development plans have not been altered, the work on certain elements will continue as had been originally planned. The projects are being managed in manner so as to maximize potential reductions in construction costs occurring due to current economic realities.

"Al Futtaim Group Real Estate will always consider ways to manage its portfolio in the best interest of its shareholders. The project continues as per our long-term business plan," said the company statement.

Sources reveal that three projects by the company have been put on hold, including the Al Badia Business Center, the W Hotel and an extension to the retail facilities which began in 2007, and the construction works of Four Seasons Hotel too, has been delayed due to changes to the design.
About 10million square feet, which forms large part of Dubai Festival City, has already been completed including the two hotels, the Festival Center Shopping mall, and Al Badia Hillside Village.

3 comments:

sunil said...

no surprise whatsoever. in fact nakheel released a statement today reg a three month delay of the burj dubai tower. not only that, they released lay off numbers and a gloomy financial forecast. expect more of this, like i said, for at least 24-30 months. things will really change in the near future in the dubai real estate market.

kashif said...

Hi Sunil,

I believe you are talking about Nakheel Tower, Nakheel has got nothing to do with the Burj Dubai..its Emaar's project.
Kashif

sunil said...

i stand corrected my friend. the burj tower is indeed emaar. nakheel was supposed to top it as the tallest...but not sure about the plans. there is certainly a going concern....