Germany-based firm enters UAE with $327m projects
Posted On November 1, 2018
Meilenstein, a real estate developer that traces its origin in Germany, has announced its foray into the UAE’s real estate market with eight projects with a development value exceeding Dh1.2 billion ($327 million).
The projects are to be built in several locations across Dubai, including Mohammed Bin Rashid City (MBR City) within Meydan City, Al Furjan, Dubai Studio City and Dubai Sports City.
The company has already invested Dh500 million ($136 million) in company formation, office set-up, talent acquisition, land acquisition, infrastructure and other ground works, etc, a statement said.
“We are going to invest a further Dh2 billion in developing projects in 2018 and 2019 and the numbers will then go up once we start building the projects and selling the properties,” Jawad Azizi, managing director of Meilenstein Developments, says.
“Meilenstein Developments is entering in the UAE market at a time when the real estate sector achieved a high level of maturity backed up with a regulatory environment that protects property buyers, investors, developers and brokers and with a high level of transparency and accountability.
“Meilenstein is a developer with a difference whose management has vast experience in real estate development and project management. We will bring German quality in building management to ensure durability and longer life in each project that we build that will strengthen the investor appetite for quality homes.”
The news comes at a time when the property market enters into an interesting phase where end-users are expected to migrate from leasehold to freehold properties with reasonable prices and more attractive payment terms.
Land transaction value in Dubai exceeded $44.14 billion (Dh162 billion) in the first nine months of the year, Dubai Land Department said in a latest report. This is higher than the gross domestic product (GDP) of more than 100 independent countries in the world today.
According to the report issued by DLD’s Department of Real Estates Studies and Research, in the first 9 months of 2018 recorded 25,473 sales transactions worth more than Dh56.6 billion, about 11,000 mortgage transactions worth over Dh86 billion and 3,486 other transactions valued at Dh19.3 billion.
During the first nine months of the year, Dubai received 27,174 investments through 21,605 investors, totalling nearly Dh50 billion, reflecting the emirate's sustained growth for years, consolidated by the huge diversity of investors from the UAE, the GCC, the Arab World, and the world at large.
“This is perhaps the best time to enter in Dubai’s real estate market where we see a large number of foreign investors are entering to take advantage of high rental yield,” Azizi says. “In total, the investments came from 163 nationalities, of which 16 were Arabs, 5 were from the GCC, and 142 were foreign.”
“Meilenstein Developments is German based. In Germany, Meilenstein owns FMA GmbH, Main-Tur GmbH companies which are into real estate and brokerage. Within the UAE, we are into manufacturing, interior decor, e-commerce and retail,” he says.
“Meilenstein Developments core project team has delivered eight esteemed projects in Germany. We would like to move forward as a real estate development company with a unique German engineering, prime locations for all the projects with guaranteed returns and best customer service with all resolution of customer queries within 24 hours,” Azizi says. – TradeArabia News Service
Source: Trade Arabia
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