Dubai developer's 'niche' Palm Jumeirah project @ Dh50m

“It’s a niche product and we are somewhat isolated from ‘typical’ market conditions,” asserted Mahmoud Amer, Executive Director, Al Sharq Investment.

“We are reacting to the supply and demand of our market segment. We are supplying a product that is not yet available in Dubai and as such feel that we are filling the supply and demand gap with our 104 homes,” he told Emirates 24|7 when asked why they were launching a Palm Jumeirah project now.

“We believe strongly that our homes offer something not seen in Dubai or the region resulting in The Alef Residences not only providing highly desirable homes but solid investments for our new home owners.”

Prices in The Alef Residences will range from Dh12 million to a whopping Dh50m.

The project has been designed by RMJM Architecture & Master planning, Hyder Consultants is the lead consultant, while the main contractor is Al Futtaim Carrillion.

“The project construction is already well advanced. We have achieved over 30 per cent completion to date prior to us launching sales,” said Amer, adding that they strictly follow the regulations put in place by Dubai's Real Estate Regulatory Authority to make sure buyers are fully protected.

The completion date is set for second quarter 2017.

Fully funded

On the question of funding, he revealed that the project was fully funded from Al Sharq Investment, which is a joint venture between Al Mana Global and Al Sharq Group. The former owns 51 per cent and the latter 49 per cent.

Part of the overall project will have a W Dubai – The Palm. However, no details were shared on the number of keys and opening date.

In June 2015, Standard & Poor’s, a global ratings agency said property prices in Dubai’s residential housing market were expected to fall by 10 to 20 per cent this year. However, Moody’s Investors Service, another ratings agency, believed government spending on infrastructure and new foreign investments in various sectors would support the real estate market over the next five years.

HSBC Global Research has previously said that Dubai may see supply of 90,000 new units by 2018, but the market will absorb – fairly easily — the new supply even if the population grows less than five per cent per year.

Follow Emirates 24|7 on Google News.