Completed towers for sale, but no bargain

A Dubai-based developer is ready to hold on to his completed commercial towers in Jumeirah Lakes Towers (JLT) and will not sell them until the “right” price is offered, 'Emirates24|7' can reveal.

“Right now, there is big demand for fully completed buildings in the market and that’s what we have. We believe there are only four fully completed towers in whole of Dubai for sale,” said Sheikh Maktoum bin Hasher Al Maktoum, President, Al Fajer Properties.

“We are getting bids… everyone is goanna lowball, but we will hold on until we get the right price.”

Sheikh Maktoum did not disclose the expected price for the buildings.

A number of local and international real estate consultancies have predicted an oversupply in the Dubai’s commercial market. In a recent report, Jones Lang LaSalle (JLL) estimated an additional 1.15 million square metres of office space to be delivered in 2011.

Landmark Advisory said office space is likely to double to 80 million square feet by beginning of 2015 from 41 million square feet in early 2010, while Cluttons estimates 10 million square feet of space to enter the market.

Both, JLL and Cluttons have put the current average vacancy rate at 40 per cent.

According to Sheikh Maktoum, his “biggest” competitors are his own clients and so the company is helping their clients to offload their properties — rent or sale.

“The biggest competitors for us are our customers and not any other developer. By offloading, helping them sell, lease or utilize their space we actually increase our own value.”

Occupancy in the three Jumeirah Business Centre towers is between 30 and 50 per cent since the developer has helped customers consolidate into single buildings.

Sheikh Maktoum claims average selling price has seen a “significant” increase in the first three months of 2011. The lowest sale price was Dh550 per square feet, which has now reached to Dh700.

“We have an increase of 20 per cent from the lowest recorded sales in the last three months,” he added.

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