NewsDamac to sign contracts worth Dh2bn
Damac Properties benefits from low prices on materials and is expected to sign contracts for the construction of 10 towers worth Dh2bn this year, a top official said.
“Despite the economic downturn, we are going ahead with the projects that we have already announced,” said Hussain Sajwani, chairman of Damac Holding.
“By the end of this year, we will sign contracts worth Dh2 billion for the construction of ten projects.”
Building costs decline
Lower demand has lead to a decline in building costs and the prices of building materials have declined significantly over the last eight months. A large number of projects have been put on hold or cancelled, which in turn results in many contractors seeking for work. Some are willing to take on work at cost prices to save jobs and avoid bankruptcy.
Lower building costs also results in opportunities for developers, as future profits could be increased while signing contracts now.
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