Earlier this year, RSG International announced the handover of AED450m Qasr Sabah, 90 days ahead of schedule. The project, located in International Media Production Zone (IMPZ), comprises of three buildings with 402 apartments and four retail shops in total. Chair of RSG Raj Sahni, Abu Sabah, speaks with Construction Business News ME about what it takes to deliver on schedule
Qasr Sabah was delivered 90 days ahead of schedule, this is quite uncommon in the region. What have you done differently?
This project was almost completely sold out when it was first launched in February 2014. During launch, the payment plan comprised of 20% reservation deposit and 80% at handover. In the Holy Month of Ramadan 2014, it was the only project in the UAE that pioneered a post-handover payment plan for its investors encompassing 60% imbursement in three years after handover. We also decided to fund the whole project internally, which we intend to follow in future projects as well. When we were planning Qasr Sabah I knew I wanted to finish it in 18 months. With a dedicated team and a drive to succeed, we ended being the only developers in Dubai who have completed a project before time.
What motivated you, as a developer?
During the groundbreaking of the Qasr Sabah, I announced that we will be delivering the entire project in 18 months. A lot of media questioned me about how would this be possible. It was 550,000 sqft of built up area, which apparently needed at least two and a half to three years to finish.
People often promise in Dubai and don’t deliver, which is why I took this as a challenge. My team and I worked day in and night out. I would be at the site at 2am in the morning to make sure construction is going on alright. We also always paid the contractor ahead of time to make sure we don’t have any problems. I am glad to say that all of it paid off.
The last few years have witnessed a tough real estate market, what has the slowdown taught you as a developer?
Actually we decided to buy plots during the crash and slowdown. We purchased some good plots at good rates. One of the biggest complaints in the market that everyone talked about was that projects were never delivered on time. Another thing that bothered me was that most developers took 80-90% investments from people, but did not even begin construction. I decided to draft a different plan, something that would deliver a project on time and something that would home-buyers a secure investment. One of the best decisions to be made is working with the best contractors in the market.
What does it take for developer to be successful?
People should not talk, they should build.
I think being a developer is one of the toughest businesses. To be able to deliver efficiently, I think, it has to be a one man show. You cannot have a development with over 20 partners.
Secondly, I think it is very important not to be greedy. Even though we have taken up many projects, we need to make sure to finish one before starting another.