The slowing Dubai real estate market provides opportunities for canny investors looking to pick up parcels of land for future projects at bargain prices, the CEO of property developer Select Group has said.

Rahail Aslam said the slowdown in the construction and real estate industry in 2016 means it is a buyer’s market, allowing firms to negotiate better terms for projects.

“We’ve got a real passing storm. Things are very turbulent and it’s very dynamic at the moment. It’s a great time to capitalise, if you’ve got the appetite to invest,” he told Big Project ME.

“The benefit of acquiring in this market, number one, is that from a developer’s perspective, it’s a buyer’s market where you can negotiate better terms, take your time and look for better parcels of land.

“Once you’ve done that, you can move on to procurement – i.e. consultant, contractor and material procurement. It’s a great time to be negotiating along that supply chain and that’s currently what [Select Group is] busy with. We’ve got ongoing projects that we’ve capitalised and we’ve made new investments for future development pipelines, which we’re planning for and setting up the supply chain.

“I’d say that we’re in a very fortunate position and that it’s a very interesting time,” he added.

This approach of investing during a slowdown was modelled on the financial crisis of 2008 to 2009, when Dubai’s real estate market collapsed. At that time, Aslam and his team at Select Group made a strategic decision to pick up parcels of land at low prices for future development.

This allowed the group to secure sites in prime positions and with no infrastructure risks, and has resulted in projects like the 325-key InterContinental Dubai Marina hotel, which opened in May 2015, and is wholly owned by Select Group.

In addition, the developer currently has the massive three-tower Marina Gate project under construction, with the first tower expected to be delivered in the third quarter of 2017. The $1.08 billion mixed-use project covers a total built-up area of 371,612sqm and is located at the entrance of Dubai Marina.

Aslam said the developer is now targeting a new segment of Dubai’s real estate pie – more affordable homes for mid-income earners – and that the slowdown has allowed it to pick up parcels of land to be utilised for that specific market.

“We’ve acquired land and we’re going to hit the mid-income bracket. We’ve got several projects in the design stage, and subject to market sentiment, we’ll be bringing those projects to the market in late 2016 or early 2017,” he revealed.

“That is our core business. We do property development, and we’ve got a strong pipeline for the future.”