An interview with Nidal Turjman, CEO, Emaar Pakistan Group: 'Pakistan property market on an upward trend'

BR Research recently met Nidal Turjman, CEO, Emaar Pakistan Group. The discussion mainly revolved around Emaar's vision and plans for Pakistan's housing market. Below are edited excerpts of the conversation.
BR Research: Can you please take us through the Emaar's story in Pakistan because as we recall it has gone through many ups and downs?
Nidal Turjman (NT): Emaar entered Pakistan as part of our global expansion strategy. In addition to Pakistan being a promising destination, we already enjoyed a strong brand appeal among the expatriate Pakistani community in the UAE. With several customers from Pakistan, the community is aware of the build quality that Emaar offers.
Our entry to Pakistan also coincided with the increasing demand for quality homes in the country, especially from the upwardly mobile population. We have received strong partnership support in Pakistan, and we launched two master-planned communities - Crescent Bay in Karachi and Canyon Views in Islamabad.
We are one of the leading investors in the real estate sector of the country, and our projects have served as economic catalysts, creating jobs and supporting local industries. As is the norm in any new market, it has been a learning and rewarding experience for Emaar Pakistan, and we are committed to delivering our projects that bring a brand-new lifestyle choice to the country.
Underlining our commitment to delivery, we have developed the first phase of Canyon Views in Islamabad, which accounts for nearly 40 per cent of the total 386 acres of land. Residents have already moved in and it is now a thriving neighbourhood. Work on Crescent Bay in Karachi is also progressing with two towers completed and five other being developed.
BRR: How has the progress been since 2013? How much time does it take to build twin towers as per industry benchmarks?
NT: On an average in International markets, it takes 30 to 36 month to complete high-rise towers. It is important that to achieve this timeline, we must work with construction partners with a strong track-record. We undertake our due diligence and work only with contractors and consultants who have delivered outstanding projects. We are now set tocomplete the first two residential towers in Crescent Bay later this year, followed by five others by 2019.
BRR: How much of investment did Emaar pour in in 2008? And did you require more investment in 2013 in terms of capital that you bought from outside?
NT: We are one of the key international investors in the country's real estate sector and have invested over PKR 18 billion so far. We will continue to invest in the country as we undertake our ongoing projects and explore new opportunities for growth.
BRR: Tell us about the Karachi Project. What percentage of the Karachi Project is complete?
NT: Crescent Bay in Karachi is a mega-development; we are developing 48 residential, commercial and retail towers in 108 acres of land featuring three man-made bays. The project will be completed in phases over the next 10 years.
BRR: What are your timelines for the completion of Islamabad project?
NT: We are planning to launch more villas and townhouses in Canyon Viewsshortly. We are currently focusing on developing more amenities for our residents. The entire project is scheduled for completion in the next five years.
BRR: What are the contours of Karachi project?
NT: Emaar is delivering a refreshing lifestyle on 108 acres of land on the most desirable address along the shores of an Arabian Sea. Developing a vibrant community with a safe and wholesome ambience, Crescent Bay setsa new benchmark as the destination to live, work, play and shop. It will have a mix of residential &commercial towers, a mall, hostels and other leisure attractions.
BRR: Given the recent changes in Karachi's real estate market ie with the construction of Dolmen Mall, Ocean Mall, Bahria Karachi and DHA City etc. has Emaar's strategy changed?
NT: We are not here to compete; we are here to create our mark by delivering an international lifestyle to our customers. Emaar's projects stand out for its design, build quality and commitment to after-sales service. We are customer-first company and we bring in a world-class lifestyle choice. We see the ongoing developments as positive for the country as it drives the nation's all-round progress.
BRR: On which date do you think Emaar's first resident will walk into her own apartment in Karachi?
NT: The first homes in Crescent Bay are scheduled for delivery later this year.
BRR: How many of the seven towers are already booked by now?
NT: Nearly all.
BRR: Most real estate projects in Karachi throw their waste into the sea. Will Emaar be doing the same?
NT: I wouldn't comment on what others are doing, but for our project, we have our own sewage treatment plant and we will uphold the highest environmental standards.
BRR: What are you doing about utilities like electricity and water for example?
NT: We have our own power generation plant and system for water supply in addition to SSGC providing gas.
BRR: As far as your electricity is concerned what kind of unit are you putting up?
NT: Uninterrupted power supply will be assured through a 3-5 megawatt plant. At the same time, we have backup generator in each tower. We are also working on a complete solution details of which will be announced later this year.
BRR: Is Emaar tying up with banks to come up with some kind of mortgage products?
NT: For Canyon Views, we have tied up with Meezan bank and Dubai Islamic Bank.
BRR: What lessons could Pakistan learn from the region in terms of real estate regulation?
NT: We need to create a real estate environment that applies best international practices to protect the interests of all stakeholders, and to contribute to the development of society by developing and applying clear and transparent real estate regulations, and assuring efficient real estate services that help attract investment. By enhancing the effectiveness of the real estate regulations, we can encourage more investment in property. More home mortgage solutions for off-plan property will also energise the market.
BRR: What's your overall outlook on Pakistan's real estate?
NT: Very promising. The trends of buying luxury apartments in Karachi has increased over the past decade due to increasing demand for secure and quality housing units. The Pakistan property market has been on an upward trend but the tax upheaval created an air of uncertainty.
However we have recorded sustained customer confidence in our projects.
BR: What are the risks you see on the horizon?
NT: I have a different view. Real estate has always been one of the safest and most promising sectorsin Pakistan. There are cyclical variations, which is only normal, but no investor with a holding capacity complains about his investment.