Developers in Dubai are not slowing down with project launches.
In first quarter 2016, 38 new projects have been launched with two new developments being unveiled in the last seven days, showing signs of confidence despite experts pointing to a slowdown.
The trend, however, is more towards developers starting work on their projects before commencing sales. This is proven by Azizi Developments and Vincitore Real Estate Development, which have started construction on their respective developments.
Secondly, developers have the capacity to complete the projects. In fact, Dubai Real Estate Regulatory Agency Chief Marwan bin Ghalitha told Emirates 24|7 just last week that developers’ today were serious and wanted to complete their projects rather than merely sell them.
“We have taken enough guarantees to ensure that the project will be completed,” he said.
Developers today need to pay 100 per cent of the land cost, minimum of 20 per cent of the construction cost in Dubai, while contractors need to pay another 10 per cent as construction guarantee.
Thirdly, developers are looking at the options to keep service charges at lower levels so investors get rental returns of between 8 and 12 per cent – which are among the highest in the world.
# Azizi’s Al Furjan project
Azizi Developments on Monday launched a serviced residences project in Al Furjan, offering investors returns of 10 to 12 per cent on their investment.
The developer, which plans to launch over 2,000 units of serviced residences by December 2016, has unveiled two towers - Candace Aster and Candace Acacia – worth Dh460 million, which are already at different stages of construction.
The projects will be delivered by third quarter of 2017 and will be operated and managed by Candace Hotel and Resorts.
Company CEO Farhad Azizi said: “The Candace project marks our entry into the Dubai hospitality market. We feel that this is the best of time to invest in long- and short-term service residential projects for a number of reasons.”
The developer states that Dubai government’s plans to double the number of tourists from 10 million to 20 million over a period of close to 10 years will alone open up a host of investment opportunities, particularly in hospitality sector.
“… coupled with the positive expectations from Expo 2020, property buyers can look forward to exceptional returns of 10 to 12 per cent return on investment, without factoring property appreciation,” Azizi said
Candace Aster houses 227 apartments, while Candace Acacia has 316 units. Prices for studio units start at Dh433,000.
#Vincitore’s Arjan project
More than 12 per cent work has already been completed in Vincitore Real Estate Development’s residential project - Vincitore Palacio - in Arjan, Dubailand.
“The construction work has already begun. In fact, more than 12 per cent of the work has already been completed, including the first floor level of the project,” company Managing Director Vijay Doshi told Emirates 24|7.
He added they aim to complete construction of the tower, housing 175 residential apartments, by August 2017.
“We are well within our schedule. As per the consultant, we are seven days ahead of the schedule,” said Doshi.
The developer has awarded the main construction contract to Mzoon Contracting Company.