Dubai developer ditches 'off plan' sale model

The ‘off-plan’ sales model has often been followed by Dubai developers to fund their newly-launched projects, but Wasl Asset Management Group, a semi-government entity that manages more than 30,000 residential units in the emirate, has ditched the finance model, having self-funded and completed the Dh1.7-billion freehold project in Dubai Healthcare City before initiating sales.

“Construction on Creek Heights started two years back and is now complete. Sales will start from December 15 with buyers simply moving into the apartment,” Hesham Abdullah Al Qassim, CEO, Wasl Asset Management Group, said after launching the development on Tuesday.

Creek Heights comprises Hyatt Regency Creek Heights Residences, a 43-floor residential tower, a five-star Hyatt Regency Dubai Creek Heights Hotel and Hyatt Regency Dubai Creek Heights Conference centre.

Though residential sale prices were not disclosed, investors buying into the residential tower stand to gain from the ‘rental pool’ that will be managed by Hyatt Hotels Corporation.

“All the 405 units will be part of our leasing pool. The unit investor can spend three weeks in the apartment – one week during the peak period and two weeks during the off-peak period. They stand to benefit from property appreciation and a good return on investment,” Al Qassim said.

Unsold units, he revealed, will be part of Wasl’s leasing portfolio, contributing to its cash flow.

Market stable

Asked on his view on the Dubai real estate market, Al Qassim said: “Dubai’s real estate sector is based on solid foundations, thanks to the pre-emptive legislation launched by our government to ensure that the market offers a high level of transparency and credibility. We expect market to remain stable next year though property prices and rentals in the market will be determined by demand-supply factor.”

Property prices in Dubai have risen since the beginning of the year, with global and local consultancies putting the increase to between 10 and 20 per cent since the beginning of the year. Rentals, on the other hand, have stabilised in the market.

Al Qassim asserted Wasl will ensure all projects that they launch are completed, whether or not they are sold.

“We will also make sure that whatever we launch will have at least basic infrastructure in place. We want to raise the confidence of investors in the market and whatever we announce will be developed whether it is sold or unsold. Our strength has been in the leasing business and ultimately whatever is unsold will be retained,” he added.
 

 

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