Desert Dream plans three projects

Desert Dream Real Estate & Investments plans to launch three projects in Dubai over the next 18 months, a top company executive said.

Details of the first development, a commercial tower, will be announced by the end of this year. All three are currently at the design stage.

"We don't launch anything until we are happy with the progress of our existing projects," Chairman and CEO Mahmoud Khan told Emirates Business.

Desert Dream has already announced three developments including its first venture at Dubai Waterfront, the Dh1.7 billion Dream Harbour residential tower. Sales of units in the 48-storey building will begin today.

The other current projects are Dream Bay, a commercial tower at Business Bay, and Dream Square, a residential development at International City.

Khan dismissed suggestions that luxury developments in Dubai were losing their appeal.

"All over the world you have people who cannot afford luxury and you have a segment that will opt only for luxury living," he said.

"We are selling Dream Harbour in places such as Brazil where people are looking for high-end luxury developments.

"Dubai is about lifestyle and it offers a lot of elements. You have the beaches you have the security and the multi-cultural society."

He said Dubai was continuing to attract international buyers. Between 70 and 80 per cent the company's buyer profile was based overseas, mainly in Brazil.

"We have chosen to market the project internationally where Dubai is often regarded as the credit crunch-free zone. This label has helped to attract a lot of funds. Take annual rental yields as an example.

At an average of eight to 10 per cent yields in Dubai are high in comparison with Singapore, which offers three per cent annually, or England, which offers five per cent annually excluding tax of 30 per cent.

"Dubai is hassle-free and long-term investors who are looking to build a rental profile are interested to buy into this market and are spending a lot of money investing in properties here."

Dream Harbour will sell at Dh1,995 per sq ft upwards, with the developer phasing sales over a year.

"Every floor as you go higher will have an increment of Dh10 a sq ft upwards. And at every phase of the sale process we will raise the price by five per cent. We expect prices in Dubai Waterfront to be 40 to 50 per cent higher by next year."

Desert Dream has Dh400 million of investments in Dubai real estate sector and intends to increase this figure by Dh200m to Dh250m.

It has no plans to take on further external funding for its projects.

The company hopes that Desert Harbour will be granted a gold accreditation in the Leadership in Environmental Design Green Building Rating System in line with its strategy of delivering high quality products while achieving its environmental goals.

Desert Dream does not lay down conditions to prevent speculators buying into its real estate projects.

"We as developers cannot do that – I can't refuse to let someone buy something. If they wish to buy they can.

"Many investors come and ask us to let them underwrite our buildings but we don't want to. If people come and say they want our whole building we say it is against our company strategy."