Dubai developers need a rethink
CBRE managing director says that smaller developers not thinking of efficiency while developing projects
Nicholas Maclean says Dubai’s developers need to rethink how they build their projects.
RELATED ARTICLES: Home-made solutions | Get state institutions involved in construction | Dubai property market growth selective – analysts
Building developers operating in Dubai need to rethink the way they approach the development of their buildings, a local real estate expert has said.
In an interview with Big Project ME, Nick Maclean, the managing director of CB Richard Ellis Middle East, said that the biggest issue facing real estate development in Dubai was that developers were still thinking ‘from the outside in’.
“I think the number one issue we face in providing a critique of a scheme is that the building has been designed from the outside in,” he explained. “Therefore, the building may be stunning from the outside, but the efficiency of the space that is occupied may actually be very poor.”
This mindset has repercussions when it comes obtaining funding for projects, Maclean added.
While developers building large-scale products were already aware of this, smaller developers designing one off buildings were at risk of being unable to obtain funding for their projects as banks remain unconvinced of their viability, he said.
“The number one advice we’re providing to some developer clients is that (the building) has to be efficient and therefore has to be designed from the structure of the floor plate first and therefore from the inside out.”
He added that another issue land owners and developers were facing was that the locations of their properties were not suitable for development at the moment. As a result, banks were reluctant to provide funding for these projects.
“Another issue is that some land developers and owners have is that the land they’re holding is in locations that are currently not active in the market. The issue they face is that while the CBD of Dubai expands, there will of course be an increase in demand. But they’re not in demand at the moment.”
“In some instances, we tell developers that the time is not right for them to build speculatively because we see very limited demand,” he explained.
“The banks are going through the same process. Your scheme might be good, but if there’s no demand in your location, you won’t be provided with funds.”
