Azizi Developments spells out future expansion plans

Azizi Developments plans to spend at least Dh10 billion ($2.72bn) to develop 100 new projects over the next four years as it expects the UAE’s property market to continue to recover at a strong pace amid surging sales, the company’s chief executive said.

The areas in which Azizi Developments plans to buy land include MBR City, Healthcare City, Al Furjan, Studio City, Motor City and Jebel Ali.

“Between 2022 and 2025, we are looking at launching another 100 projects, minimum,” Farhad Azizi told The National at Cityscape in Dubai. “First the construction starts and after six months or so sales [will] open. If the appetite is there, we could increase it.”

The developer has 10 plots in its land bank and is looking to acquire 90 more for its future portfolio expansion, and is in active talks with government-backed master developers including Nakheel, he said.

“We are easily looking at Dh10bn expense: Dh3bn would be land and another Dh7bn will be construction, infrastructure and other expenses,” Mr Azizi said. “We are shopping around.”

“Right now, we have between 70 and 75 projects under construction and under 30 delivered in Dubai,” Mr Azizi said. “In 2025, we would easily deliver more than 100 projects.”

Azizi Developments is bullish on the continued recovery of the UAE’s property market from the pandemic-driven slowdown that disrupted business momentum and tipped the global economy into its worst recession since the 1930s. The market rebound picked up pace in the final quarter of 2020 and has only accelerated, Mr Azizi said.

“What has happened since then is that sales have gone up and beyond the pre-pandemic level; they have crossed 2016 and 2017 levels,” he said, without providing the value of sales.

The UAE’s property market has benefited from fiscal and monetary measures introduced by the government and from residency options to attract investors.

“There have been so many positive things that have helped all the developers and other businesses,” Mr Azizi said. “Hotels are packed and developers are launching new projects, so everybody is doing well.”

Azizi Developments, which has changed its operating model, now builds at least 20 per cent of a development before releasing units for sale to investors, as opposed to launching off-plan sales first then starting construction.

“This formula has allowed us to focus on quality and timely delivery,” Mr Azizi said. “We find this scenario of ours more risky for us, but more comfortable for customers.”

This year, the developer has spent more than Dh6bn on launching and finishing construction on more than 30 projects in Dubai. It opened another 11 developments which had crossed the 20 per cent construction completion mark for sales to investors.