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21 February 2024

High premium for off-plan units with Burj view

By Parag Deulgaonkar

Serviced apartments sold by Emaar Properties in Vida Residence Downtown Dubai are up for sale in the secondary market with investors asking for premiums up to 10 per cent.

Adverts posted on local websites by real estate agencies ask for two to 10 per cent premium.

“We are asking for eight per cent premium since the units we are selling are on the high floors with Burj Khalifa and Dubai Fountain view. Premiums are lower for units on the lower floors with normal Downtown view,” a property agent, who posted an online advert, told Emirates 24|7.

He added: “The sale will be based on a memorandum of understanding until 40 per cent payment is made. Thereafter, we will apply for no objection certificate and register the sale.”

We revealed earlier that average sales price on the launch date (January 18) were Dh2,500 per square feet with initial buyers offered units at Dh2,200 psf. (Read: Downtown Dubai @ Dh2,500 psf)

Dubai property prices rose by over 20 per cent in last year with total real estate transactions reaching Dh236 billion.

Though Emaar has banned local real estate agents (registered/unregistered) from selling any off-plan property, purchased under their names, until handover, agents said that their investors purchased these units.

“These units are purchased by investors and not by us… we aren’t buying Emaar units directly since they have banned us [agents] from reselling them,” admitted an agent.

Vida Residence Downtown Dubai comprises 320 units, including one-, two-, three-, and four -bedroom serviced apartments.

The 57-storey tower is directly linked to Vida Downtown Dubai via an air-conditioned glass bridge, giving residents access to the hotel. The project is likely to be completed by 2018.

Vida Residence Downtown Dubai was launched simultaneously in several cities on Saturday, including Dubai, Abu Dhabi, London, Baku and Riyadh.

Vida Hotels and Resorts will service all homes with residents having access to modern amenities including a swimming pool, fitness centre, and a dedicated area for children.

The Dubai Land Department has increased its property registration fee to four per cent from two per cent to stop quick sales in the market and has plans to introduce new rules to curb speculative activity in the market.