The new operational strategy will focus on effectively managing Deyaar's project portfolio and expanding customer service facilities, the company's Chief Executive Officer said.
The new business strategy consists of three elements: a development strategy, customer support strategy and communications strategy.
As part of the development strategy, Deyaar's project portfolio has been divided into four groups, each constituting 25 per cent of its total portfolio. These projects have been categorised as: unannounced projects, which comprise projects that have been planned but yet to be launched or sold; announced projects, which comprise projects that have been launched and in various stages of construction; projects that are complete but not handed over due to infrastructure delays; and projects that are experiencing a consolidation process.
"Despite challenging economic conditions globally, Deyaar remains exceptionally well positioned to consolidate its current growth and capitalise upon compelling opportunities here in the region and worldwide," said Markus Giebel, Chief Executive Officer of Deyaar. "That said, given the current global environment, we also feel that it is important that Deyaar focuses its immediate attention on adjusting its product portfolio and aligning resources to accommodate changing market dynamics for the long-term growth and stability of the regional real estate sector."
As per the strategy, the company will hold back the entire 25 per cent of the portfolio that is unannounced and not released for sale. Twenty-five per cent of the portfolio that has been launched and sold will go ahead as per schedule. Projects that are currently complete but have not been handed over due to infrastructure delays, such as lack of electricity and water supply provision by master developers, constitute 25 per cent of the portfolio.
Projects that are yet to be built or in initial stages of construction will be considered for consolidation, wherein customers owning units in similar projects in comparable areas will be offered the option to transfer their ownership to projects that will be completed on a fast track basis, with the rest of the projects being phased out. Such projects constitute the remaining 25 per cent of the company's portfolio.
As part of the customer support strategy, Deyaar will further enhance its customer service offering by extending an enhanced payment schedule to all Deyaar homeowners and investors, granting them greater flexibility in meeting their existing repayment obligations. Under the terms of the schedule announced today, customer payments will be synchronised in line with current project delivery timelines.
While the exact repayment terms will vary depending on the specific Deyaar project and development timeline, all Deyaar homeowners and investors will be provided with a uniform offering. The company will also extend customised support in structuring individual payment plans.
In order to enable customers to fully optimise the benefits of the new enhanced payment program, the company has also established a new customer service facility that will service clients looking for guidance on the new program. The facility is sufficiently equipped to offer customised support in structuring individual payment plans. More such facilities will be established over the next year. The company will also exclusively assist its customers gain access to the best mortgage financing options and is actively involved in discussions with various banks.
"Deyaar is committed to providing all its clients with equitable treatment in line with international best practices, and we are confident that this initiative will benefit all our investors and end-users," Giebel said. "As a responsible corporate citizen dedicated to supporting the long-term growth and diversification of the UAE and the wider region, we firmly believe that this enhanced payment schedule will also further contribute to the stability of the real estate sector.
"Today's announcement – with its emphasis on meeting the evolving needs of our clients – signals the kind of innovative and proactive approach that we believe is appropriate in the current environment," Giebel added.
As part of its communications strategy to enrich the customer service experience at Deyaar and further strengthen its relationships with all stakeholders, the company will unveil its first customer newsletter later this month. Going forward, the customer newsletter will be distributed to all customers and investors in Deyaar properties on a quarterly basis.
Commenting on the new communications initiative, Giebel said: "Now more than ever, Deyaar remains convinced of the importance of clear communication with our stakeholders. As part of our ongoing effort to offer timely and transparent updates to all our clients, we will continue to keep them fully apprised of relevant developments in the company and its many strategically located projects."
