Serviced apartments sold by Emaar Properties on Saturday in The Address The BVLD were put up for sale in the secondary market on the same day with a brokerage firm seeking a premium ranging between 12 and 20 per cent.
Adverts posted on a local website by a real estate agency said they were seeking a 12 per cent premium on 1,450-square feet, two-bedroom apartment, which was facing the sea and Sheikh Zayed Road, while it sought 20 per cent premium for another two-bedroom (1,285 square feet) with a full fountain view. The original price of the apartments were Dh2.8 million and Dh3.45 million, respectively.
According to investors, the units were priced between Dh21,000 (Dh1,962 sqft) and Dh28,000 per square metres (Dh2,600 per sqft).
In July, Emirates24|7 reported that the Dubai Land Department had urged developers launching new projects to 'discourage' investors from re-selling 'off plan' properties unless the project had reached an advanced stage of construction.
“We don’t have any regulation to prevent people from reselling their property. The developer should discourage people from selling off-plan properties until the project has reached an advanced stage,” the department had said.
On September 23, it came to light that only after the payment of 30 per cent will Emaar allow the buyer to transfer the unit in the secondary market.
“They told us that you can sell, but officially you will not be allowed to complete the transfer until one year,” said an investor.
Rakesh Bohra, founder, Value Homes Real Estate Brokers, said: “I am certain people will make money in this project. Over the next few years, prices will appreciate further as Emaar's name is associated with this project.”
However, a property consultant working with a top international consultancy said he was cautiously optimistic since one project could not determine any price increase for other projects.
“It is good for one company, but this demand will not lead to overall price hike. There is a two-tier market in Dubai and we have seen that only ‘good’ locations have been price increases,” he added.
Standing from six in the morning with his token in hand, Alam, who works in Qatar, wants to buy an apartment in Emaar’s new project — The Address The BVLD, which was open to investors today.
“I always wanted to buy an apartment in Downtown Dubai. My brother, who stays in Dubai, told me ‘this was the project’ and so I am here to buy one,” he told 'Emirates24|7'.
“Downtown is very beautiful and it is very well maintained. Besides, these are serviced apartments and I am certain it will offer me a good return on investment.”
A Saudi national, who asked not to be named, told this website: “I want to buy an apartment in Emaar project since it is in Downtown. I am not bothered about the price, I am ready to pay cash now.”
However, they will have to brave the Sun and wait patiently as individuals with tokens, distributed since yesterday, will be allowed to book apartments only after the VIP launch is concluded.
In order to manage the crowd, Emaar has appointed 80 security guards across its office precincts. However, this website witnessed people getting into arguments with security staff for not letting them to the Emaar office. An ambulance was as well stationed at the location.
On Friday, 'Emirates24|7' reported Emaar will be selling units in The Address The BVLD for as high as Dh29,000 per sqm) (Dh2,650 per sqft), more than double the average sales price in the area.
Asteco, a real estate consultancy, said in July apartments in Downtown Dubai were the most popular among buyers and average prices had increased by nine per cent to Dh12,900 per sqm in the second quarter 2012 compared to the first quarter.
Besides end-users, a number of real estate agents were also standing in the queue, hoping to make a quick buck.
“We are booking the apartments as we are confident that we will be able to sell the project at premium even though the construction is yet to start. Properties off plan may not sell in other locations, but certainly in Downtown,” Ashok K, a real estate agent, said.
Market sources said they were told that booking deposit will be 20 per cent and off plan resale will be allowed only after 40 per cent of the property price is paid.
The Address The BVLD serviced residences is a 340 metre tower and is the second tallest in Downtown Dubai after iconic Burj Khalifa. The 63-storey tower will have 200-room hotel and 542 serviced apartments and will be completed by 2015.
Earlier this year, Emaar launched Panorama at The Views project and new townhouses in Alma 2 cluster, Arabian Ranches. It has also bought land in Dubailand from Dubai Properties Group (DPG), a member of Dubai Holding, which it plans to develop as a mixed-use neighbourhood.