Dubai developers launch more mid-income housing units

Developers in Dubai continue to focus on launching ‘affordable’ housing projects, hoping ‘off-plan’ sales to gain traction backed by the right mix of price and payment plan despite transactional activity slowing down for completed residential units in the first quarter 2015.

Joining the bandwagon was Binghatti Developers with its project in Dubai Silicon Oasis, and Nshama announcing a new phase in the mega Town Square development on Tuesday.

“The new project offers affordable properties with high quality materials and finishing in a development that is to be completed in less than one year,” said company Chief Executive Officer,Muhammad Binghatti Aljbori.

“There is an excess of developers focusing on the higher end of the residential market, we feel that the demand for affordable, mid-segment properties is far outpacing the available supply and that this segment will continue to experience growth in Dubai and the region as a whole.”

The project, resembling a jigsaw puzzle, has 222 apartments with prices starting at Dh425,000. The project is more than 60 per cent complete with the expected completion date November 2015.

On the same day, Nshama announced the launch of ‘Safi Apartments’ in its Town Square development, located close to Arabian Ranches Golf Course, with priced for units starting from Dh349,988.

“The strong response from end-use buyers for our residences underlines the real market demand for thoughtfully designed homes that are offered at highly competitive price points,” said Fred Durie, Chief Executive Officer, Nshama.

Sales will commence on May 2, 2015.

The developer has awarded several construction contracts and the development has started to take shape. The mega project will feature over 3,000 townhouses, over 18,000 apartments and feature a Vida Town Square Dubai hotel, Cineplex, open-air cinema, over 600 stores and F&B outlets, outdoors sports courts and cycling tracks.

‘Emirates24|7’ reported that 78 new projects were launched in 2014 with the Dubai Land Department reviving at least 43 stalled projects worth over Dh10 billion through its Tayseer and Tanmia initiatives in the past few years.

In a report on the performance of the real estate sector in the first quarter 2015, Asteco, real estate consultancy, said the number of transactions for completed apartment properties were down by 12 per cent, whereas those for completed villas were down by 35 per cent in the first quarter 2015 compared to the same period last year, citing Reidin data.

DLD data, however, reveals that total new investment in the market rose by Dh3bn in first quarter 2015, with total transactional activity crossing Dh64 billion.

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