Dubai property boom: Rise in developers launching projects
A resurgence in the property market, led by UAE’s strong economic fundamentals, safe haven status and growing interest from regional and international investors, is driving an increasing number of developers to launch projects in Dubai.
Since the beginning of the year, Emaar Properties, Dubai’s largest developer, has launched five new projects and Nakheel has announced sales for land plots in its master developments.
Last week, Jones Lang LaSalle, a global property consultancy, said the Dubai property market was not going to witnessing any price correction this year. UK-based Knight Frank has already put the price increase between 10 and 15 per cent this year, with Dubai Land Department chief expecting anything between 35 and 40 per cent.
Driven by demand and growth prospects, others are joining the bandwagon. Dubai Investments, a diversified investment conglomerate, is planning to launch projects valued at Dh3.5 billion this year with Orion Real Estate Development, a new entrant, announcing plans to invest Dh500 million in real estate developments.
Revealing to Emirates 24|7 about the project launches, Khalid bin Kalban, Chief Executive Officer, Dubai Investments, a Dubai Financial Market-listed company, said: “We will be launching phase 3 of Green Community, a Dh500 million project, and relaunching our Mirdiff Hills, a Dh3 billion project, in 2014.”
The Green Community phase 3 will have nearly 250 units, of which more than 200 will be villas.
Kalban added the company was revising the concept of Mirdiff Hills and work was expected to start on the project in or after the third quarter.
When launched in 2008, Mirdiff Hills was slated to be a mixed-use development, consisting of 680 apartments, 380 offices and 129 retail outlets. The project was put on hold following the global financial crisis in 2009.
Dubai Investments has one of the largest land banks across the UAE, totalling nearly 30 million square feet gross floor area (GFA), owned by its different subsidiaries such as Dubai Investments Park, Dubai Investments Real Estate Company, Al Taif Investments and its joint venture Properties Investments.
“The UAE real estate industry is in the midst of a robust growth – which is a reflection on its sound fundamentals and overall business and investor confidence across sectors, be it retail, tourism, aviation, hospitality or trade,” Kalban said.
He told Emirates 24|7 earlier that the growth cycle in Dubai's real estate market has just begun and prices are still far below the peak of 2007-2008. (Read: Dubai's real estate growth cycle has just begun: DI CEO)
MAG Group, a real estate developer, launched a Dh800 million mixed-use project in Dubai Healthcare City.
The project, developed in joint venture with Dubai Healthcare City, is expected to include two hospitals covering a total of 260,000 square feet, plus an 80,000 square feet clinic; a residential complex of four buildings with combined gross floor area of 430,000 square feet; a hotel apartment with a gross floor area of 80,000 square feet and 100,000 square feet of retail space.
Company official expect the project to be completed by 2016.
Orion Real Estate
Orion Holdings has announced the launch of Orion Real Estate Development (ORED), its development arm, which will work on at least, five projects worth Dh500 million.
Raghav Sadana, Vice-Chairman, Orion Holdings, said: "We are excited to enter the property development sector, especially at a time when Dubai is witnessing excellent growth across all core industries. Our team has experienced the highs and lows of the local real estate market, and we are confident that our efforts towards establishing this new venture will yield good results.”
ORED will launch projects in Jumeirah Village Circle (JVC), a development near the upcoming Mohammed Bin Rashid City.
Orion Holdings' real estate portfolio includes properties in Business Bay, Jumeirah Village Circle, International City, Dubai Silicon Oasis, Jumeirah Golf Estates, and Emirates Hills.
Union Properties and National Properties, a unit of National Bonds Corporation, said in January they were developing an upscale residential project at the Green Community in Motor City.
The first phase of the project will focus on the construction of 78 villas spread across an area of 330,000 square feet, while the second phase will include 74 villas and 58 apartments (two and three bedrooms) across six floors spanning 425,000 square feet. Work on the project is expected to begin in the second quarter of 2014 and is slated for completion in end 2015, the companies had said.
Emirates 24|7 had revealed that Union Properties will launch five towers and a launch a project replicating Paris’ famous Champs Elysées in Motor City by mid-2014.
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