| Work Detail |
In an interview with Zawya Projects, Founder and CEO Yogesh Bulchandani discussed his positive outlook for Dubai’s real estate sector, the challenge of rising construction costs and the company’s future plans.
Dubai-based Sunrise Capital, which recently delivered the 100 million UAE dirhams ($27 million) ‘Legacy by Sunrise’ residential project in Arjan community, intends to focus on developing luxury apartments and villas in prime locations, the company’s Founder and CEO said.
Yogesh Bulchandani told Zawya Projects that Sunrise Capital has developed and handed over projects worth more than AED 250 million ($68 million) to date.
“The value of projects under development and in the pipeline is over AED 500 million ($136 million),” he disclosed.
Bulchandani said he remains upbeat on Dubai’s real estate market, citing the emirate’s strong economic performance in 2023 and early 2024, which has further solidified its reputation as a safe haven during major global economic challenges.
“In the first half of this year, key indicators such as a 1.4 percent year-to-date population increase to over 3.6 million, 15.4 million tourist arrivals, and a 3.2 percent GDP growth, means the outlook moving forward is very positive,” he said.
He said he anticipates steady growth in the residential, commercial, and hospitality sectors, driven by favourable government policies, and both regional and international demand.
“While we do not see any major signs of market consolidation, the upbeat economic indicators and the maturing market landscape suggest continued growth and ample opportunities for investors,” he said.
Excerpts from the interview:
Could you elaborate on the recently delivered ‘Legacy by Sunrise’ project? What were the market factors behind the project and why did you choose Al Barsha South?
Legacy by Sunrise is located in the vibrant Arjan community in Al Barsha South and features contemporary and luxurious studios, one- and two-bedroom apartments.
The project’s architect is Model and Znera and the overall design blends the opulence of resort-style amenities with the convenience and accessibility of city life.
We acquired the land for the project in August 2021. We chose Al Barsha South because of its strategic location in the heart of Dubais growth corridor. This spot is an attractive choice for an innovative new project like Legacy, because as a freehold area it allows developers to own and sell properties without too many restrictions.
Additionally, Al Barsha South has experienced significant growth in the Dubai real estate market thanks to its modern infrastructure, excellent transport links and wide range of nearby amenities. The area is also home to family-friendly attractions like Dubai Miracle Garden and Butterfly Garden.
Are you seeing an increase in construction costs in the UAE? What are your expectations on tender prices?
Yes, we have seen UAE construction costs increase by around 2-3 percent, which was predicted by various analysts at the start of the year. These increases are obviously challenging for developers – however, by creating new processes and capabilities it is possible to minimise any negative impact and stay on track.
It’s also important to put this in the context of the ongoing global supply chain issues, economic instability overseas and geopolitical events. In terms of tender prices, we expect to see a 10 to 15 percent increase.
Could you share your business plan for 2024 and 2025? Are you planning to venture outside Dubai?
Our plan is quite straightforward – to continue developing luxury residential apartments and villas in prime UAE locations, setting new standards in luxury real estate and staying true to the culture and values of the region.
Whether it’s residential towers or luxury villas, we want each project to be a unique masterpiece, meticulously crafted with an unwavering attention to detail, from design to architecture and location – we also want to make luxury living accessible to more people.
As a team of passionate property experts, we are focused on establishing Sunrise Capital as the most trusted name in the industry, while delivering top tier customer experience.
The construction industry faces headwinds regarding high interest rates and persisting supply chain challenges concerning construction materials. There are also some concerns around contractor liquidity. How are you addressing these challenges?
To tackle these challenges, we keep client requirements at the centre-stage and then plan a project around it. We want to be known for the quality that we provide to our clients and not for simply decorating the Dubai skyline with multiple projects.
Our team is dedicated to delivering quality projects and has a very strict policy for contractors and material compliance. Every contractor comes with different challenges; our goal is to select the one with the least issues. |
