Annual rental rates
The forum is a great idea and as a moderator you have the option to prevent this from becoming an open “can of worms”. In the end however transparency and fairness across the clients must obviously prevail.
My specific concerns have been known to your staff since before the “tough times” as you call it.
My question is how do you speculate (since its all about negative and pessimistic predictions) on the success of Dubai Pearl given the fact that “supply demand equilibrium” is tending to the oversupply by a large amount in the future. How does one justify the low return on investment?
Annual Rental Rates
Dear Mr. Roque
Thank you for taking the time to post your question on the forum.
Dubai, like all property markets in the world is going through a dramatic change. We believe that as in all markets, there will be some areas that will remain more attractive than others. When we selected the site for the Dubai Pearl, we did so after extensive research and investigation into future trends in Dubai. Our location within the TECOM freezone, overlooking the Palm Jumeirah, with a development that offers sustainable facilities and services under an umbrella of brands, allows us to firmly believe that we are in the best location to take on the future.
As with most research, the supply demand equilibrium in Dubai fails to take into account the demand from international investors and companies that will make Dubai their home in the future. There are not many places in Dubai that you can have freehold ownership of offices in a mature freezone. Flexibility of design, superior finishing and the host of additional facilities that will be offered with our offices gives us confidence in the fact that Dubai Pearl remains a sound investment.
Regards
Santhosh Joseph
President & C.E.O
Annual rental rates
Dear Mr. Joseph
When I read your answer I was baffled, then I realized that I had asked you to speculate.
Allow me Sir to rephrase the question.
Given the fact that recovery will be flat and slow and will never reach the fairy levels that we all saw before reality came crashing upon our heads, will those international investors and companies that you think will make a difference on the supply demand equilibrium not realize that the price being asked for these offices is prohibitively expensive?
Assuming that rents will go to the highest realistic value, it simply, will not be high enough to pay the interest rate on half the property value loan. That makes it a bad investment
Does Dubai Pearl have a plan to make this project attractive to the investor’s pockets?
For a few months now we have heard of “proposals and incentives” when will we know about these?
Thank you and regards
Mario Roque
Annual Rental Rates
Dear Mr. Roque
As you rightly point out, we are busy finalising various proposals and incentives for our existing investors which we are certain will ensure that Dubai Pearl remains a good investment. We are obviously aware of market sentiments, and as we will be long term investors in Dubai Pearl, we must ensure that everyone who has and will invest in Dubai Pearl remain as long term investors too.
We are creating Dubai Pearl as an economic, social and environmentally sustainable project. This requires a long term vision and an uncompromising commitment by all who are involved in creating her. We will not compromise on our original standpoint that Dubai Pearl will be a benchmark in the luxury segment of the market and an exclusive destination. Dubai Pearl will, by its location, status, services and sustainability attract the best of the best and as such we will achieve premiums above those of the market at large.
As we have stated in the past, we stand firmly by our position that Dubai Pearl will be best suited for a medium to long term investment. It will produce a good final yield comparable to the best markets in the world, as well as good capital appreciation as a result of our partnerships with the world’s best brands.
Your Client Manager will be in contact with you in the next few weeks to convey our proposals and related incentives to you, which we are very confident, will allay all your concerns and ensure your long term relationship with Dubai Pearl.
Regards
Santhosh Joseph
President & C.E.O