Abu Dhabi developer Sorouh Real Estate said on Sunday it was cutting prices and easing payment plans on an 8 billion dirhams ($2.18 billion) project to help customers weather the global financial crisis."Sentiment is positive in the market but price is playing a determining role," Sorouh Chief Executive Mounir Haidar said on the sidelines of Cityscape being held in Abu Dhabi on Sunday.
Sorouh said in a statement it would cut selling prices, rephase and consolidate, and reschedule payment plans for Alghadeer, a mixed-use project located between Abu Dhabi and Dubai.
The global financial crisis has battered the real estate sector in the UAE. But UAE capital Abu Dhabi, home to most of the country's oil, has fared better than most. Many developers across the country have moved to ease payment plans as customers suffer, however.
Haidar declined to put a number on the price reduction but told reporters "it will be substantial".
Haidar said Sorouh has not cancelled any of its projects.
The company's managing director Abubaker Seddiq al-Khouri said Sorouh was "lucky" to have sold more than 60 percent in each of its projects, enabling them to go ahead.
Sorouh currently has more than 70 billion dirhams worth of projects under development in the UAE and internationally.
Haidar said funding was not a problem as state aid had helped restore liquidity to the financial sector.
"We have banks granting mortgages so money is flowing. The government has also injected money in some financial institutions but banks are assessing the creditworthiness of customers," he said. (Reuters)For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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