Swiss developer Fortimo Group plans to begin construction of golf flats at Dubai Hills, with mobilisation of the site scheduled to take place between mid-September and October 2023.

"The tender schedule for the project does not involve dividing the contract into ancillary and main contracts. Instead, the whole process is seen as one," says founder and co-owner Remo Bienz.

The 10-storey residential building is expected to be completed by September 2026, Bienz revealed.

Bienz revealed that the new project will be completed in the third quarter of 2023, with the next project scheduled to be announced in the final quarter, as Dubai and the UAE remain the focus of the development.

What market factors prompted you to launch your new residential project in Dubai?

From the outset, we have been confident in the potential of the Dubai market as a strong platform for generating annuity flows. Dubai has consistently been one of the cities with the highest return on real estate investment, which prompted us to explore more opportunities.

In line with this vision, we first developed a mid-market branded residential apartment building in 2015 for both long-term and short-term leasing. The positive response and success of our build-to-rent development reinforced our confidence in the potential of the market.

Building on this, we developed a four-star hotel in a prime location in 2019 to meet the growing demand for hospitality services in Dubai. This project further strengthens our position in the Dubai market.

In addition, during the challenging times in Covid-19, the Dubai government introduced significant initiatives to provide stability and support to the real estate sector, reinforcing our confidence to invest more and expand our business footprint.

Looking ahead, we have decided to launch a build-to-sell project, taking into account the current market conditions and the prime location of our selected site. We believe that the demand for residential property remains strong and our experience in the market provides us with the assurance that we will launch this new business with enthusiasm.

When did you acquire the land for the project? Have land prices for the overall development project increased now?

We acquired the land for the Hills Estate project in Dubai in 2022 directly from the master developer, Emaar. As with many prime locations, the availability of land in desirable areas is often limited, which can lead to an increase in land prices over time.

What is the tender schedule for the project?

The tendering timetable for the project did not involve dividing the contracts into ancillary and main contracts. Instead, the entire process is considered as a whole. The tendering process has been initiated and site mobilisation is planned for mid-September to October 2023. The projected completion date of the project is September 2026.

What are the design features of your project?

The entire project is being managed by Eaglewing Projects, who are driving the design and development of the project along with the Fortimo team. We have worked with Eaglewing on all of our projects to date. 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.

An important aspect of the design is the combination of large green spaces, water bodies and external areas to create a relaxed and comfortable living environment. This emphasis on open space and green space sets the project apart and makes it an attractive option for potential buyers or residents seeking a higher quality of life.

What are the sustainability elements of the project?

Set in Switzerland, the project aims to incorporate a variety of sustainable elements to ensure that environmental impacts are minimised and operating costs are saved for future occupants. Whilst the exact details of the materials to be used in the project cannot be determined at the planning stage, our commitment to sustainability means that we will carefully select materials that comply with environmental standards and regulations.

Are you planning to launch any new projects in the UAE this year?

We have received good feedback from the market for our golf flats and we are planning new projects to be announced around Q4 2023.

How do you plan to raise funds for the new projects?

In all of our projects in Dubai to date, our equity contribution has always been more than 50 per cent of the total project cost, including land acquisition costs and a significant portion of construction costs. The equity contribution is usually realised through internal power generation.

How do you see the construction industry facing rising interest rates and the ongoing challenges in the construction materials supply chain?

We recognise the challenges posed to the construction industry by changing commodity prices and resource scarcity.

However, these challenges are helped by our thorough execution planning, advance procurement planning and maintaining stable supply partners who always support us with favourable pricing and on-time delivery.

We always do our best to adhere to project timelines to avoid uncertainty and mitigate risks and any ups and downs.

What is your outlook for the property market in Dubai over the next two years?

Despite the economic challenges faced in many parts of the world, Dubai remains a lucrative investment destination.

Dubai benefits from the high level of liquidity that comes with a low return economy and is therefore less susceptible to a potential recession or interest rate hike. Whilst there may be some impact on end-users, particularly those reliant on mortgages, the current level of rents in Dubai should help to offset any psychological impact of rising interest rates.

In addition, our focus on long-term investors means that our projects are less affected 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 must all acknowledge the efforts of the Dubai government over the past three to four years, including the liberalisation of some key policies, the implementation of new initiatives and the successful hosting of Expo 2020. These factors, coupled with Dubai's positioning as a top investment and tourism destination, have contributed to the optimistic outlook.