Tamweel Tower units going cheap

The uncertainty on when the restoration work will commence on Jumeirah Lakes Towers’ Tamweel Tower, part of which was gutted by a fire 15 month ago , is compelling few owners to sell their apartments at a price lower than market rate.

Listings on property and classified websites reveal prices to range between Dh1,050 and Dh1,200 per square foot, nearly 16 to 23 per cent below the current rates for neighbouring towers.

Al Seef 2 and 3, located in same cluster as Tamweel Tower, are selling for Dh1,300 to Dh1,400 per square foot.

“We are selling our unit in Tamweel Tower and we have listed it with some agents as we aren’t certain on when the tower will be restored,” JP, an apartment owner, told Emirates 24|7.

“We took a home loan to buy the apartment. Since we can’t move back to our apartment, we have rented an apartment. So now we pay for the mortgage, rent and the chiller charges. It’s become too taxing for us and so we want to sell it.”

This website had reported earlier that apartment owners are paying the capacity charge.

Despite listing with a number of property agents, JP, is yet to hear from them.

According to real estate agents, there is no harm in listing, but convincing someone to buy in such a tower is a different proposition.

“If there is distressed selling, then there is a likelihood of someone buying in the tower. A 20 to 25 per cent discount isn’t good enough,” a property broker agent.

The 34-storey Tamweel Tower, which has over 160 apartments, caught fire on November 18, 2012, reportedly due to a cigarette butt thrown off a building. The fire then rapidly climbed up, setting ablaze many apartments and leaving many other damaged by smoke and water.

Unit owners have been promised restoration, but don’t have a clear idea on when they can return to their apartments yet.

Knight Frank, a UK-based real estate consultancy, said this week property prices in Dubai rose 35 per cent in 2013 and are expected to rise by 10 to 15 per cent this year.

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