The Chairman of the Board of Directors of Binghatti Real Estate Development Company, Mohammed Binghatti, stated that the current total value of the company’s project portfolio, which is building what will be the tallest residential tower in the world, amounts to more than 40 billion dirhams, which enhances the company’s strength and financial stability, stressing The company intends to double this value to about 100 billion dirhams over the next 18 months, an increase of 150%.
Bin Ghatti said, in an interview with “Emirates Today”, that his company, which has concluded recent global partnerships with the brands “Jacob & Co”, “Bugatti” and “Mercedes Benz”, continues to expand its projects, as it plans to launch about 12 thousand units. All over Dubai within 3 months, adding that the “cash flow” for projects that will be delivered during the next three months alone exceeds one billion dollars (3.67 billion dirhams).
Real estate investment
In detail, the Chairman of the Board of Directors of Binghatti Real Estate Development Company, Mohammed Binghatti, said: “Dubai is one of the most important real estate investment destinations in the world, at a time when its thriving market is characterized by continuous development, and it also provides various opportunities for investors, as the average price is A square foot in Dubai is about $352, despite the recent price increases, which is equivalent to a third of the average price in London, which amounted to $868 per foot at the end of last year, and less than half the average price in Singapore, which amounted to $765 per foot, and slightly higher than half. The average price in Los Angeles is $663 per foot.
Binghatti added: “In addition to the attractive prices for purchases, there are services that you can get in Dubai, whether you are inside a hotel, a restaurant, or at the airport. Entering or exiting the airport takes a few minutes, and there are also services available and taxis for families and women only. And people of determination, and therefore the services in the emirate are at a completely different and highly developed level, and all of this contributes to the quality of life and the market, and affects the price of real estate.”
Land Bank
Binghatti stated that “the land bank currently owned by the company is sufficient for two and a half to three years, after acquiring a large portfolio of lands in various parts of Dubai and in the main and strategic areas, while work is currently underway to expand the scope of the land bank.”
Regarding expansion plans outside Dubai, he said that the company opened an office in the Saudi capital, Riyadh, as a first step to expand in the Kingdom as it is a promising market.
He pointed out that the available cash flows are good, the company’s financial position is strong, and the cash flow value of the projects that will be delivered during the next three months exceeds one billion dollars, and is available in escrow accounts.
Issuing sukuks
Binghatti said, “The company’s experience in entering the sukuk market was excellent, as in the first offering, orders were 210% more than what was offered, and in the second offering, they were 420% more than what was offered, of which 40% came from outside the country, which indicates confidence.” Investors in the economy of the UAE and Dubai and our performance as a company.”
He continued: “This thing is motivating for us, and there is no doubt that all options in the future are available to us because of our success in the sukuks, and the sukuks may be a tool that we return to again in the future.”
Money market
In response to a question about the intention to offer the group’s shares on the financial market, Binghatti said: “The company is a family company (closed), and there is no immediate intention to offer its shares on the stock market, especially since the cash flows are going well, but that does not prevent us from studying the matter in the future.” the future”.
Localization file
In his speech, Binghatti touched on the Emiratisation file, saying: “Emiratization is a fundamental duty for the company, and these are my instructions to the Human Resources Department. Therefore, my goal is to see (Binghatti) as the largest private company incubating Emirati talent that it deserves, and we have excellent mentalities that are passionate and want to learn. We are following this file, and we have a specific goal, not only to increase the number of UAE national workers, but also the programs that are being offered, as we are following a strategy to increase numbers and Emiratization, and we are one of the first companies to launch a program to stimulate Emirati real estate brokers, especially the new batch. who graduated in the real estate regulation program, and we motivated them and gave them higher commissions than the normal commissions we pay for sales, and we saw excellent interaction on their part, and many of them sold in the (Binghatti Hills) project, which marked the beginning of their launch as new workers in the field of real estate brokerage.”
Investor interest
Binghatti continued: “The Emirate of Dubai provides an investment haven and a safe environment, in which various nationalities from all over the world live under the shadow of rational and wise leadership, and this is what makes it a source of interest for investors, talents, labor, and for every person who wishes to reside there,” noting that the real estate market The emirate is attracting an influx of new buyers from Turkey and Egypt, in addition to Canada, Europe and Germany, so that the market continues to expand the large base of international buyers in it, in another indication of the continued strong performance of the real estate market in the emirate.
He added that guests who come to Dubai from abroad, such as Brazilian star Neymar, celebrities, and actors from Hollywood, are impressed by the development and services in one city that embraces these nationalities, and they declare their astonishment, and confirm that this development is not found anywhere in the world.
Luxury real estate
Binghatti pointed out that there are various factors that contribute to the evaluation of luxury real estate, the most important of which are the project location and existing services, in addition to the brand. He explained: “Binghatti Company, for example, has cooperation with the international automobile company (Bugatti) to provide investors with distinctive services, including providing an elevator that allows parking the car inside the apartment, as well as an entire beach within the project,” stressing that all of these factors are It contributes to assessing the value of the property.
Regarding programs for people with limited incomes, Binghatti said: “Dubai still attracts all categories, and today a studio can be rented for 45 thousand dirhams annually in (Jumeirah Village Circle), and if you want an area that enjoys more luxury, you can rent in the (Business Bay) area for a value of 65 thousand dirhams annually, and this is an affordable amount for housing and rent in Dubai, and the same applies to the cafes and restaurants sector, as you can get a meal worth 10 dirhams, and if you want a meal in an upscale restaurant, you can eat for 2000 or 2500 dirhams.”
The Chairman of the Board of Directors of Binghatti Real Estate Development Company added: “In this context, Binghatti has a strategy to have one or two luxury real estate projects every year, but at the same time we do not forget other properties of a larger category, as we have studios.” In Jumeirah Village Circle, prices are about 700 thousand dirhams, and in other areas they are worth 650 thousand dirhams, and are available to everyone.
What does a million dollars buy you?
Chairman of the Board of Directors of Binghatti Real Estate Development Company, Mohammed Binghatti, said: “One million dollars (3.67 million dirhams) can buy an area of about 1,000 square feet in three of the best areas in Dubai, while one million dollars allows you in a city like Mt. Carlo, you can get about 72 square feet, so Dubai is one of the best options, if not the best at all.”
He pointed out that the rental market in Dubai has maintained return levels ranging between 7 and 10%, and there are areas that sometimes achieve higher than that, while the percentage in the British city of London is 3%. He added: “Despite the price increases witnessed by the real estate market in Dubai, it has maintained this level. Sometimes the price of the property rises, and the rental rate decreases, and the return still ranges from 7 to 10%.”
Mohammed bin Ghatti:
• The cash flow value of the projects expected to be delivered during the next three months exceeds 3.67 billion dirhams.
• Dubai real estate is a good opportunity for investors, as the average price per square foot is equivalent to a third of that in London and about half that of Los Angeles.
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