Ajmal Saifi, chief executive officer of Dubai-based Prestige One Development, told Zawya Projects that it will launch a tender for its first two residential projects worth nearly AED 500 million ($136.15 million) in July 2023.

"Currently, our consultants are preparing the tender documents," he said.

The Dhs350 million The Vista, with a total area of 263,909 square feet, will comprise 140 units in Dubai Sports City. The AED150 million The Residence project, with a total gross floor area of 156,570 square feet, will consist of 98 apartments on the Jumeirah Village Ring Road.

The two self-financed projects will be delivered in the first quarter of 2025.

Saifi revealed that the developer intends to launch at least three more projects, possibly in Business Bay, Culture Village and Dubai Sports City.

Excerpts from the interview:

What market factors compelled you to launch two residential projects in Dubai?

We have been active in the Dubai real estate sector since 2008, participating in various stalled projects and investing in freehold properties. Recognizing the maturity of the Dubai real estate market, we identified the opportunity to develop projects that meet the market demand. Dubai's government support, business facilitation and e-government initiatives have made it an attractive global hub for both the middle class and entrepreneurs.

What do you see as the biggest challenges in the coming years and how do you plan to overcome them?

The highly competitive market presents a huge challenge as developers leverage their land bank for projects. To overcome this challenge, our focus remains on maintaining quality, insisting on timely delivery, and avoiding shortcuts. Thorough market research and meeting evolving customer needs are key to staying ahead of the curve.

When will you issue authorized bids and prime bids for these two projects? Given that this is your first project, how do you plan to select the contractors?

Our consultants are currently preparing the tender documents and we are on track to release these bids in July 2023.

While these are the first projects under our current entity, our industry experience since 2008 has guided our contractor selection. We prioritize value over price, considering factors such as their track record, timely project delivery, reputation and commitment to quality.

Who were the architects for these two projects? What was the USP of your towers in terms of design?

LACASA was the architect and interior designer for The Residence, while Model Engineering was the architect for the JVC project, working with ZNera Space on the interior design. The unique selling point of our towers is their timeless design, and The Vista offers golf course-facing units in addition to studios. Both projects prioritize spaciousness and livability, while incorporating Feng Shui principles. The apartment structures ensure privacy and provide unobstructed views without disturbing other residents.

What are the sustainability elements of both of your projects?

Sustainability has been an integral part of our projects since the conceptual stage. Our consultants and architects have integrated green design, materials, processes and energy efficiency. These projects will include electric vehicle parking and battery systems, solar energy use in public areas, and the continued use of environmentally friendly materials.

How do you plan to fund these two new projects?

We have allocated our own funds to finance these two new projects.

Do you have any insights to share regarding the technology and construction process for this project?

We worked on incorporating smart home technology, using artificial intelligence for energy monitoring, and optimizing consumption in common areas. Sensor lights and home control software are examples of our technology efforts.

How would you characterize this year compared to 2022?

Dubai has seen a significant increase in land prices compared to 2022, with land values in different locations rising by 50%. It will take time for the real estate market to fully reflect these changes.

How many more projects will you launch in the UAE this year?

We are targeting to launch at least three more projects in Dubai this year. We have projects in the pipeline for Business Bay, Culture Village and Dubai Sports City and plan to launch another 750 apartments this year.

Are there any plans to enter other markets in the GCC/Middle East region?

While our primary focus is to expand our presence in Dubai throughout 2023, we are actively exploring expansion opportunities in other markets in the GCC and the Middle East.

The construction industry is facing headwinds from rising interest rates and ongoing supply chain challenges. What steps are you taking to overcome these obstacles?

Considering the challenges in the construction industry, such as rising interest rates and ongoing supply chain issues, we have implemented a number of measures to overcome these obstacles.

We prioritize working with contractors who have a strong reputation and proven track record of successfully weathering difficult times. We look for individuals or companies that have a history of delivering on their commitments.

In addition, we understand that the construction industry can sometimes be ambiguous, so we strive to maintain clear and accurate communication from the outset to avoid any misunderstandings. This approach also extends to our material sourcing, where we prioritize prompt action and efficient processing to expedite the availability of construction materials.

What is your outlook for the real estate market in Dubai?

Contrary to the negative view, we see a number of factors contributing to the growth of the real estate sector in Dubai.

I do not expect the sector to slow down for at least a few years. The government is doing a commendable job of maintaining confidence in the market by facilitating the relocation of families and entire offices from Europe and North America to Dubai. This reassures me that Dubai's real estate will remain favorable for years to come.

Dubai has the potential to become one of the most expensive cities per square foot in the future, but there is still plenty of room for growth. The UAE government is consistently committed to innovation, supporting investor confidence and safeguarding investor interests.