Thursday, May 26, 2011

Dubai developer holds back sale of completed property

The Dubai-based Al Fajer Properties has revealed that although it has completed the commercial towers in Jumeirah Lakes Towers (JLT), it plans to hold on its sale, until the right price has been offered.

According to the President, Al Fajer Properties, Sheikh Maktoum bin Hasher Al Maktoum, there is huge demand for completed buildings in the market, but there are only four completed towers in the whole of Dubai ready for sale. Therefore, although the company has been getting bids, it plans to wait until the right price is offered.

Sheikh Maktoum has not yet disclosed the expected price of buildings. He said the average selling price has seen considerable rise in the first quarter this year. The lowest sale price offered was Dh.550 per square feet, but now it has touched Dh.700 per square feet, marking a 20 percent increase from the lowest recorded sales during the past three months.

Meanwhile, several local and international real estate consultancies have predicted an oversupply in the Dubai commercial market. The latest Jones Lang LaSalle (JLL) report says an additional 1.15mn square meters of office space is yet to be delivered in 2011.

According to Landmark Advisory, the office space will double to 80mn square feet in 2015 from 41 million in 2010. Cluttons estimates that at least 10million square feet of space will enter the market.

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