(MENAFN - Khaleej Times) After a very successful year in 2013, Nakheel sees sustainable growth in Dubai's property sector and said it will continue to expand in 2014, according to its chief executive officer.
"We will build on the success of 2013 by seeking and identifying opportunities that will benefit both Dubai and Nakheel. We will continue to expand and diversify our growing project portfolio in 2014, while working to enhance and improve the existing communities," Sanjay Manchanda told Khaleej Times.
Manchanda also mentioned that 2014 will see some of Nakheel's new, post-restructuring projects, including Palma Residences and Dragon Mart Phase 2, come to fruition. Nakheel has gone from strength to strength in 2013, with robust financial results, thousands of property handovers and the launch of several new projects, with a very healthy response from investors. The property developer also awarded millions of dollars of contracts, in addition to millions of dollars of sukuk profit payment in 2013.
Last year Nakheel announced a range of new destination and tourism projects on Palm Jumeirah, including Nakheel Mall, The Boardwalk and West Beach, as well as a unique destination development - Deira Islands - which will provide infrastructure for dozens of hotels, bring a host of new tourism, cultural, business and residential facilities to Dubai, and play a key role in realising Dubai's vision for the 21st century. New residential projects were launched across various Nakheel communities including Jumeirah Park, Warsan Village, Jumeirah Islands, Al Furjan and Palm Jumeirah.
Talking about the challenges in 2013, the chief executive said: "Meeting customers' expectations and ensuring projects delivering on time were some of the challenges noted in 2013. However, with careful planning, teamwork and support from various authorities including Dewa, Rera, DLD and RTA, Nakheel successfully delivered a large number of developed units to customers."
Last year was very important for the property market in terms of regulation as the UAE Central Bank introduced new rules to restrict speculation in the property market. The Central Bank issued a new mortgage lending regulation in October, which allows banks to provide loans of up to 80 per cent of the property value to Emiratis and 75 per cent to expatriates. The new rules came into effect from December 28, 2013.
"The mortgage cap will help ensure that genuine buyers, not speculators, invest in Dubai property, keeping speculation down and avoiding the challenges faced in previous years. At Nakheel, our projects are generally sold to cash buyers who pay via a post-dated cheque payment plan, with minimal mortgage arrangement," Manchanda said.