It plans to develop projects with investments of 7 billion dirhams

"Binghatti Holding": Our confidence in the local economy is a shield of protection from the repercussions of "Corona"

• Mohamed Binghatti: Executive Director of "Binghatti Holding"

• The “group” did not have any delay in delivering projects during the Corona crisis.

  From the source

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Binghatti Holding Group stated that confidence in the national economy constituted a protection shield for it in preventing the repercussions of the emerging corona virus, noting that despite the repercussions of the Corona virus on the real estate sector, the group continued the rapid progress in its scheduled projects, so there is no delay from The company accepts the implementation or delivery of any of its projects.

In statements to Emirates Today, the group confirmed that restructuring some jobs and controlling unnecessary expenditures were among the company's plans, which contributed to getting out of the crisis with the least losses, pointing out that the group plans to develop between 60 to 70 real estate projects. With an investment value of seven billion dirhams.

She pointed to the need for companies to "realistic" in dealing with the crisis, in relation to the offers they present, and to move away from exaggerations in marketing offers fictional and misleading and far from the reality of the market, such as: unrealistic rental returns, in addition to reducing housing sizes in an unrealistic manner, in order to Giving some developers an advantage for themselves, in terms of price at the expense of space.

National economy

In detail, the executive director of Binghatti Holding Group, Mohamed Binthati, said that “the group has dealt steadily with the crisis, which stems from confidence in the national economy and its ability to face crises, which was embodied in dealing with events such as the financial crisis in 2008. Where the UAE was one of the first countries to emerge from the crisis, which is evidenced by the wisdom in dealing with the (Covid-19) crisis, ”stressing that“ this confidence has made us continue our work without any concern, because we are confident that we are under the umbrella of a conscious leadership. This crisis, which is embodied in the wise decisions of our rational government, especially with regard to excluding the contracting sector from stopping work, as well as encouraging banks to provide liquidity and ease to their customers.

Binghatti indicated that the group did not have any delays in the delivery of projects, thanks to its handling of the crisis out of this confidence in the wise leadership, as work is underway to implement projects and deliver them according to the approved project schedules.

He pointed out that the group has succeeded in implementing and delivering all its scheduled projects, stressing the need for the developer to be responsible, and to deliver his projects on time, without any delay, especially since works thanks to our rational government have not been disrupted, so there is no justification for a developer at the present time to delay Delivery.

Binghatti advised companies operating in the sector to deal with the crisis, to focus on business continuity, and restructuring employment in a way that positively affects liquidity and the continuity of the company's cash flows, in addition to directing their budgets towards future investments, pointing out that the re-discussion of prices by the procurement department for all consumables For the company to control the cost of the final product, it will be in the interest of the company, in addition to dealing with suppliers who have good financial solvency, and can provide easy payment schedules to alleviate the monetary pressure that may result from the repercussions of the crisis.

He emphasized the realism of companies in dealing with the crisis, in relation to the offers they present, which contributes positively to giving consumers confidence in the company's projects, stressing the need to move away from exaggerations in marketing offers fictional and misleading, which are not possible to implement and far from the reality of the market, as It is traded by some developers in relation to unrealistic rental returns, as well as unrealistic reduction in housing sizes, in order to give some developers an advantage for themselves, related to price at the expense of space.

Challenges and success

Binghatti stressed that the company turned the challenges it met, during the height of the Corona crisis, into successes, as it carried out job restructuring by expanding some jobs at the expense of other jobs, as the focus during the Corona period was on structuring its jobs from During the increase in the number of consultants for the sales and marketing team, to exploit the market share during the "silence" period of some players in the market, in addition to the fact that they exploited the layoffs that other companies had made to select and employ highly qualified people.

He pointed out that «one of the good things, which we have done to overcome the challenges of (Corona), is to cooperate with the affected parties, whether buyers or renters with flexibility, in terms of extending the payment periods of installments or the rental value.

Marketing offers

He added: “Also the marketing offers were important, especially as they coincide with this period, in conjunction with the significant decline in sales of many developers, as the group was more daring in this matter, which is evidenced by the marketing offers we made, the last of which was the offer (Buy a residential unit ... and get a 50% discount on the second unit) », stressing the importance of these marketing matters in achieving successes, by maintaining a good sales rate, during the crisis, as well as digital transformation, and the tendency to sell remotely, what was It has a positive impact on sales.

Future plans

He said, "The group has expansion plans in the short and long term, including working to deliver projects under development at the specified dates, expanding new projects, and increasing the group's land portfolio." He pointed out that the group plans to develop between 60 to 70 real estate projects, with an investment value of up to To seven billion dirhams.

He added: “Focusing on offering products that provide better value for money, from the plans that the company has been working on for a long time, as these products are provided in high-end areas close to the city center to be accessible to the middle class who dreamed of having a foothold in these Regions, where we are working to reduce costs for building materials without adversely affecting quality.

Sector performance

Regarding the performance of the real estate sector in the UAE, Binghatti said: “Based on the economic activity the country is witnessing, I think that the real estate market in the UAE is witnessing a very positive improvement, as most of the projects that were recently launched offer very reasonable prices and allow buyers, whether They are end users or investors, opportunities previously unavailable to them.

We expect to see more projects launched this year, and this will increase investor confidence in Dubai. ”

Binghatti explained that the real estate market has passed the stage of price correction, which started at the beginning of the year, and that prices have reached their real levels, which are unlikely to witness further decline.

He pointed out that the economic initiatives and stimuli, recently announced by the government, give rise to optimism for the next stage, and we expect the real estate sector to begin to gradually improve at the beginning of next year 2021.

2008 crisis

The executive director of the "Binghatti Holding" group, Mohamed Bin Ghatti, said that "there is a big difference between the financial crisis, during the year 2008, and the current (Corona) crisis, which is that the first was a financial crisis, and there was no appetite for investment, but this crisis created More opportunities for those who have purchasing power, as buying in (Corona) has not stopped, but the investor is looking for good opportunities in the market.

Among the factors of difference, also, is that the banks were strict in the first crisis, but now the banks are lenient and cooperative, which creates more opportunities.

During the 2008 crisis, investors were fleeing the markets and financial instruments, but now patience and perseverance are the two attributes of everyone out of the crisis.

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Mohammed Binthati:

- "The market passed the stage of price correction, and prices reached their real levels."

- "The developer must be responsible and deliver his projects on time."

- “The group has expansion plans, in both the short and long terms.”

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