Cityscape sales account for 60% of Bloom’s annual transactions
More than half of Bloom Holding's annual transactions are a direct result of Cityscape, the company's CEO tells Construction Week
A regular fixture at Cityscape Global, Bloom Holding credits the event for approximately 60% of its annual transactions.
Speaking with Construction Week on the event’s opening day, Sameh Muhtadi, chief executive officer of Bloom Holding, said: “We regularly have a presence at Cityscape. I think this is our seventh year to participate.
“For us, it’s a great event because we actually do more work and sales here than any other venue. I’d say about 60% of our transactions are a direct result of Cityscape.”
He noted that in the past years, transactions “happened on or within a day or two of Cityscape”.
“That’s how important the event has been for us. And this is the first year that [on-stand] sales are being allowed, which I think is an excellent development,” said Muhtadi.
With four projects on offer at the three-day event, Bloom is expecting to repeat its performance in the previous years, if not exceed it.
“We have four projects that we’re offering: Phase 2 of Bloom Towers and Phase 2 of Bloom Heights,” said Muhtadi. “Both are located in Jumeirah Village Circle (JVC), and both generate excellent rental yields, which I think is what our investors are looking for.
“We also have two projects in Saadiyat: Park View and Soho Square. We have a few units remaining there, and we’re offering those”
He added: “We’re eager to find out how the market is going to behave this year. There’s been reported softness in the real estate market, but we have been doing extremely well. We have a lot of appointments scheduled for sales today.”
Talking about why Bloom remains largely unaffected by the softening in the market, Muhtadi revealed that the company “designs backwards”.
He explained: “If you design with value for the investors in mind, which means you are designing backwards basically, you’ll come up with a product that will yield 10% or more in rent, and I think that’s key.
“And of course – location, location, location. Again, that is very important. We’ve focussed on JVC, and it’s proved to be an excellent choice because it’s the only part of Dubai that saw prices rising last year. All other areas in Dubai have seen drops and softening in prices, except JVC.”
Yields calculated by independent consultants reportedly suggest 11.5% yield on studios, and 10.5% on one-bedroom units.
“That’s the product we’re focussed on – buildings with only studios and one-bedroom units. We think that’s what the market is looking for,” he said.
Cityscape Global 2017 is presently taking place at Dubai World Trade Centre. It opened yesterday and will conclude tomorrow, 13 September.