Dubai Investments launches Dh2 billion self-contained community

Dubai Investments (DI) announced the launch of Mirdiff Hills, a Dh2 billion mixed-use development in Dubai, through its real estate arm Dubai Investments Real Estate Company (DIRC).

The latest in a string of mega projects launched by Dubai Investments, Mirdiff Hills is envisioned as a self-contained community comprising residential apartments, corporate offices and retail outlets.

The project, which will have a total built-up area of 2.7 million square feet, comes equipped with all modern amenities such as swimming pool, clubhouse, playschool, internet facility, coffee shop and children's play area, and offers 24-hour security.

Khalid Kalban, Managing Director and CEO of Dubai Investments, said, "DIRC intends to play a leading role in the regional property scene, and with the launch of Mirdiff Hills we take a significant step towards achieving our strategic objectives and consolidating our market presence. With several more prestigious projects in the pipeline, DIRC is set to further expand its portfolio and position itself at the forefront of real estate activity within the UAE."

In all, Mirdiff Hills will feature 680 well-appointed apartments, 380 offices and 129 retail outlets.

Located in the city's Mirdiff area, prominent Dubai-based architects Al Shurooq Engineering Consultants designed the project, while construction leader Al Arif Contracting Company has been appointed the lead contractor. Mirdiff Hills is scheduled for completion in early 2010

Damac gives Dh805m deal to Intermass

Luxury lifestyle provider, Damac Properties, has awarded a Dh805 million contract to Intermass Engineering and Contracting Co, for its Lakeside project at International Media Production Zone (IMPZ).

This project will be completed by December 2010. Lakeside project is Damac Properties' third project in IMPZ - the previous two projects being the Crescent and Lago Vista. All the three projects are being built by Intermass.

"Intermass is one of the leaders in the engineering and construction industry in the UAE today and their appointment as main contractors is due to our faith in the quality of their work and our past experience with them," said Peter Riddoch, chief executive officer of Damac Properties.

Machinery sector enjoys a boom amid rising material costs and labour shortage

The UAE remains the Gulf's largest construction market with some 1,400 active projects worth around $1 trillion.

The majority of these projects are in Dubai and Abu Dhabi, according to Simon Jevons, construction products manager of Sigma PMV, a construction equipment supplier.

The UAE is also home to more than 35 per cent of the heavy construction equipment available worldwide, with 25 per cent of the world's tower cranes all housed in Dubai.

"Consider the size of the UAE, a relatively small 82,880 square kilometres. On this patch of desert land, that could fit inside Iran nearly 20 times, there are 6,000 construction companies," the experts point out.

The country tops the tables globally in terms of per capita expenditure on construction, according to the Business Monitor International.

Jevons said the current conditions will force contractors to focus more on efficient machinery and less on labour.

"Investment in the right type of machinery to undertake labour-intensive processes is an obvious choice for contractors as workforce and material costs increase. Modern construction methods can reduce labour costs by as much as a factor of ten," Jevons explained.

The cost of materials has rocketed over the last year, as cement prices surged 50 per cent and steel prices 70 per cent.

Steel reinforcement bars saw a 35 per cent price hike, now standing somewhere between $1,530 and $1,550 per tonne and cement a 15 per cent rise between May and July this year alone.

These rising material costs are compounded by increasing labour shortages in the UAE. Around 250,000 illegal labourers left the country last year, leaving contractors and developers struggling in the aftermath