After a series of design changes and price cuts, Taiwan’s largest listed property developer, FarGlory, has resumed work on its ambitious Maryah Plaza project on Al Maryah Island. The company recently selected the main contractor for the project, which will be built over three phases, with phase one to be completed in 2018.
However, the Abu Dhabi property market continues to reel under the pressure of a general slowdown in the economy, making it difficult for developers to attract buyers for projects with prices as high as Dh2,500 per square foot. Talking exclusively to PW, Jack Hu, managing director of FarGlory Middle East, is unfazed as he speaks confidently about the project and its market potential.
n What made you invest in this project?
Maryah Plaza heralds a new dimension of opulence and glamour. The world-famous architect Lord Richard Rogers will present his first masterpiece in the Middle East, promising the ultimate in haute living at the most desirable address in Abu Dhabi. We have recently announced Al Fara’a Group as the main contractor for Maryah Plaza. We both are committed to quality and have a strong track record of delivery.
We believe in the future of Abu Dhabi, which will become one of the most robust economies in the Middle East and North Africa.
n Have you started work on the project?
Yes, work has resumed and the project is moving forward at pace.
n When do you expect to complete the project?
The project will be built in three phases. Phase one has the first tower, phase two consists of the two middle towers and phase three has the five-star hotel and office tower. Currently, phase one is under construction and we intend to complete it in the fourth quarter of 2018.
n The project was first announced in 2010 and the groundbreaking took place in 2013, before being stopped for 18 months. What happened?
We had to delay the project because of global volatility. As a private developer we have to take a well-informed and measured approach and we, therefore, waited for the market sentiment to become clearer.
n Will you still be offering ultra-luxury apartments in line with London’s One Hyde Park as you had earlier promised?
Our dedication to both the projects and to our clients is the foundation of our great success. We believe that the market is now asking for affordable luxury. Thus, we want to accommodate that without compromising on our original vision of offering Maryah Plaza as one of the most desirable and sought-after addresses.
n Considering the project has gone through a number of design changes and delays, is it more challenging to make this project economically viable?
As an experienced developer with more than 700 projects and 200 million sq ft delivered globally in the past 50 years, we have gone through various cycles and are therefore experienced enough to deal with any adversity. FarGlory has a long-term vision for the UAE and we are not discouraged by a short-term setback.
n You started taking bookings with a price tag of Dh3,750 per square foot, but later reduced it to Dh3,000 and then Dh2,500. What is the current price you are offering for this project?
The current offer is Dh2,500 per square foot, but this will be for a limited time and we expect it to increase gradually as it heads back to the original price.
n Considering the current slowdown, do you expect to attract enough buyers and investors with this new price?
Absolutely! There are many shrewd investors both locally and globally who will see the value in our current price. Unlike the stock market, experienced real estate investors tend to hold longer-term views when investing and, therefore, short-term volatility will not be overly concerning. In fact, many believe low points in the market are the best time to invest. We expect a gradual recovery of the UAE real estate market starting from the first quarter next year.
n What would an investor gain from buying into this project?
There are many reasons to invest in our project:
Capital appreciation — Al Maryah Island is Abu Dhabi’s new financial hub and central business district, which will be home to major financial institutions and big multinational corporations. Experience shows that major financial centres like ours have the greatest return on investment (ROI) overtime.
Unique offering — There are no other residential projects on Al Maryah Island. There are hotel apartments, but these are roughly double the price of Maryah Plaza.
Attractive pricing — Due to the weak market, we are offering buyers a fantastic discount that will result in an even greater ROI.
Attractive payment plan — We offer our buyers an attractive payment plan where the investment capital required during construction period is very affordable.
