Dubai's mega-developer offers schools rent-free construction time

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Emaar Properties, Dubai largest developer, is leasing two plots in Mira and Mira Oasis community being built in its Reem master development.

The developer will be offering 18 months of rent-free construction period to these school operators.

The leasing rate for the school plots is set at Dh12 per square feet for first 2 years with a 5 per cent rent escalation every year, the company states.

The lease term is minimum 20 years. Companies will have to give a security deposit and construction deposit of 20 per cent and 10 per cent, respectively, of gross rent of first year rent.

However, the company says service charges haven’t been finalised.

Parthenon Group, a London-based management consultancy, has predicted that Dubai will need 110,000 additional seats by 2020, which means four to five new schools have to open each year that will require Dh5.5 billion of private capital investment to build the capacity.

Colliers, a global real estate consultancy, believes Dubai will require an additional 77,000 student places, translating into 51 new school by 2020 with this requiring an investment of an estimated Dh7.34 billion.

As per Knowledge and Human Development Authority (KHDA), the regulator of schools and universities in Dubai, there are 169 private schools in the emirate with more schools expected to open over the next five years.

Last week, Emirates 24|7 reported that the developer was seeking bid for a commercial plot in Dubai Marina, setting a minimum purchase price at Dh279 million.

Read: Emaar seeks minimum Dh279m for Dubai Marina commercial plot

 

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