| Work Detail |
Despite economic challenges in many parts of the world, Dubai continues to stand out as a lucrative investment destination, according to Fortimo’s Founder and Co-Owner Remo Bienz.
Swiss developer Fortimo Group plans to start the construction on The Golf Residence in Dubai Hill, with site mobilisation scheduled between mid-September and October 2023.
“The tendering timeline for the project does not involve segregating the contract into enabling and main contracts. Instead, the entire process is being treated as a single entity,” said Founder and Co-Owner Remo Bienz.
The expected completion date for the 10-storey residential complex is September 2026.
As Dubai and the UAE remain focal points for developments, Bienz revealed that new initiatives will be finalised by the third quarter of 2023, with the next project scheduled for announcement in the final quarter.
What market factors compelled the launch of your new residential project in Dubai?
We were confident in the Dubai market’s potential from the beginning, recognising it as a strong platform for creating an annuity stream. The city has consistently offered one of the best returns on real estate investment, encouraging us to explore further opportunities.
In line with this vision, we first developed a mid-market branded residential apartment building for long and short-term leasing in 2015. The positive response and success of our build-to-lease developments reinforced our belief in the market’s potential.
Building on that success, we subsequently developed a 4-star hotel in 2019 in a prime location, catering to the increasing demand for hospitality services in Dubai. This venture further strengthened our presence and position in the market.
Furthermore, during the challenging times of Covid-19, the Dubai government introduced significant initiatives that provided stability and support to the real estate sector, boosted our confidence to invest more and expand our footprint.
Moving forward, considering the current market conditions and the advantageous location of our chosen plot, we decided to launch a build-to-sale project. We believe that the demand for residential properties remains robust and our experience in the market gives us the assurance to embark on this new venture with enthusiasm.
When did you acquire the land for the project? Are you now seeing an increase in land price in the master development?
We acquired the plot for our project in Dubai Hills Estate in 2022 directly from the master developer, Emaar. As with many prime locations, land availability in desirable areas tends to be limited, which can lead to an increase in land prices over time.
What is the tendering timeline for the project?
The tendering timeline for the project does not involve segregating the contract into enabling and main contracts. Instead, the entire process is being treated as a single entity. The tendering process has already been initiated, and the plan is to mobilise the site between mid-September and October 2023. The expected completion date for the project is September 2026.
What is your project’s USP in terms of design?
The entire development is managed by Eaglewing Projects, who are driving the design and development alongside the Fortimo team. So far, all our projects have been delivered in association with Eaglewing. The architectural firm for the Golf Residence project is AWAJ (Al Wasl Al Jadeed Consultants), and the interior designer is David T’kint Design Studio.
One of the key aspects of the design is incorporating large green spaces, water bodies, and external areas, promoting a relaxed and comfortable living environment. This emphasis on open and green spaces sets the project apart, making it an attractive option for potential buyers or residents seeking a higher quality of living.
What will be the sustainable elements of the project?
With a Swiss background, the project aims to incorporate various sustainable elements to ensure its environmental impact is minimised and operating costs remain efficient for its future occupants. While specific details about the materials to be used in the project cannot be pinpointed at this planning phase, the commitment to sustainability means that we will carefully select materials that align with eco-friendly standards and regulations.
Are you looking at launching new projects in the UAE this year?
We have been receiving good feedback from the market for the Golf Residence and are planning new projects, which will be announced around the fourth quarter 2023.
How do you plan to fund your new projects?
In all our projects so far in Dubai, our equity contribution is always more than 50 percent of the total project cost, including land acquisition expenses and a significant portion of construction costs. The equity contribution is typically funded through internal generation.
What is your take on the headwinds faced by the construction industry in terms of rising interest rates and persisting supply chain challenges concerning construction materials?
We are aware of the challenges in the construction industry due to the changes in commodity prices and shortage of resources.
However, through our well-planned execution, advance procurement planning, and maintaining stable supply partners, who always support us with the preferred pricing and on-time deliveries, help take care of such challenges.
We always try our best to adhere to the project timelines to ringfence ourselves from uncertainties, mitigating risk and any twists and turns.
What is your outlook on the real estate market in Dubai over the next two years?
Despite economic challenges in many parts of the world, Dubai continues to stand out as a lucrative investment destination.
The city benefits from an influx of liquidity from low-return economies, making it less susceptible to the impact of potential recessions or interest rate hikes. While there might be some effects on the end-user segment, particularly those reliant on mortgages, the current rent levels in Dubai should help offset any psychological impact from an increase in interest rates.
Moreover, our focus on long-term investors means our projects are less influenced by short-term economic fluctuations. By catering to this segment, we aim to maintain stability and reduce the impact of external factors on our investments.
We all must appreciate the efforts of the Dubai government in the past three to four years in terms of liberalising some of the key policies, implementing new initiatives, and the success of Expo 2020. These factors, combined with Dubai’s positioning as a top investment and tourism destination, contribute to the optimistic outlook. |
