UAE developers are not in a mood to put the brakes on their development plans even though global stock markets have collapsed and oil prices are in a slump.
Oil prices dropped by more than seven per cent to close at $42 a barrel on Monday after a rout on global equity and commodity markets. Despite the global economic worries, local developers have started construction work on their projects.
Latest to join the launch pad is Omniyat Properties, which along with Langham Hospitality Group, an international hotel operator in Hong Kong, announced on Monday the Dh1-billion Langham Place Downtown Dubai in Burj Khalifa district.
“The launch of Langham Place Downtown Dubai complements the emirate’s strategic tourism vision to annually attract 20 million visitors by 2020. By then, we will have delivered over 1,500 hotel rooms and suites,” Mahdi Amjad, Executive Chairman, Omniyat, said in a statement.
The project consists of a five-star luxury hotel and serviced apartments, adding 438 units to the hospitality sector in the emirate on completion in 2018. (Supplied)
The project consists of a five-star luxury hotel and serviced apartments, adding 438 units to the hospitality sector in the emirate on completion in 2018.
The hotel, comprising 167 rooms, will feature facilities including Michelin Star restaurants, four distinct food and beverage outlets, a rooftop bar and lounge, and a salon that will serve the brand’s signature afternoon tea.
“Dubai continues to receive demand for premium developments. We expect a strong response to the launch of the serviced apartments that will welcome global investors starting October,” said company Managing Director Mark Phoenix.
On Sunday, Emirates 24|7 reported Sharjah Oasis Real Estate Development Company had launched Sharjah Waterfront City, a mega project costing between Dh18.5 billion and Dh20 billion.
Read: Sharjah unveils Dh20bn waterfront city: 200 towers, 1,100 villas
Glitz in the making
Danube Properties has recently awarded the main construction contract for the Dh300-million Glitz 1 and 2 in Dubai Studio City to Naresco General Contracting, a local contracting company.
“Currently, the enabling work on both sites is four months ahead of the planned schedule and a combined workforce of over 500 people is expected to execute the construction work during peak season,” Rizwan Sajan, Founder and Chairman of Danube Group, said.
Atlas Foundation Company has been awarded the earthworks contract for Glitz 3 and is currently undertaking mobilisation work on the site.
“Shoring and excavation work is scheduled to commence by month-end,” Sajan said.
Town Square taking shape
Nshama, a private developer, has also awarded the construction contract for its Zahra and Hayat townhouse communities in Town Square to Beaver Gulf Group.
“Town Square is now taking concrete shape with work on the project ongoing ahead of schedule,” said Fred Durie, Chief Executive Officer, Nshama.
Town Square is located in close proximity to Arabian Ranches Golf Course and Al Maktoum International Airport. The master development will have over 3,000 townhouses, 18,000 apartments, retail, hospitality and commercial space.
In August 2015, Lookup.ae, a real estate portal, said Dubai saw launch of 120 off-plan projects in the past two years.
This website reported in June 2015 based on Reidin.com data that the emirate had seen launches of 14 new projects in the first five months of 2015 compared to 37 project launches announced during same period last year.
Earlier this year, JLL and Knight Frank, global property consultancies, said property prices were set to decline by up to 10 per cent this year.
Moody’s Investors Service, an international ratings agency, has said government spending on infrastructure and foreign investments in various sectors will support the real estate market over the next five years.
Dubai is expecting Dh25 billion in total investment in infrastructure-related projects in the run-up to Expo 2020 with nearly 277,000 new jobs being created.