By Staff writer
Artar Real Estate chief says completion dates are given out for 'marketing reasons' in bid to lure investors
Gulf real estate companies have been less than honest about completion dates for their projects in a bid to lure investors but it's a trick that will no longer work, a prominent Saudi developer has said.
Artar Real Estate Development, which is currently building the 36-storey Mada Residences in Dubai, said investors have become "far more astute" and insist on properties being delivered on schedule.
Sulaiman Abdulrahman Al Rashid, the company's CEO, said residential properties delivered on time and offering more space, comfort and all-round quality are the key to attracting the Gulf region’s increasingly discerning investors.
On the eve of Cityscape Jeddah, he said: “Real estate has to adapt to keep up with the changing demands of investors and end users.
“They’ve become far more astute in the challenging economic times that we face now compared with the boom era of a few years ago. They want more for their money, better quality, and they want projects to be completed on schedule.”
He said one of the priorities for Artar is to ensure the Mada Residences project, which offers 193 luxury apartments, is completed on time by the second quarter of 2018.
“We’re perfectly on schedule, and we will make sure there are no delays,” added the company’s chief operating officer Okbah Abdulkarim.
“This is vitally important to investors. Any delays effectively cost them money whether they’re intending to sell, rent out or live in the property, and developers need to be completely honest and practical when announcing completion dates.
“You can’t build a 65-storey building in two years, and sometimes completion dates are given out for marketing reasons.”