Tuesday, February 18, 2014

UAE property market resurgent with series of project launches in 2014

The UAE real estate market is once again in its boom phase, given, it’s strong economic fundamentals, the safe haven status, and interest from regional and international investors, all of which is encouraging more developers to launch projects in Dubai.

Since early this year, Emaar Properties, the largest developer in Dubai, has launched five new projects, while Nakheel has announced sale for land plots in master developments.

Driven by demand and growth prospects, and with others joining the bandwagon, Dubai Investments, a diversified investment conglomerate, has also announced plans to launch projects worth Dh.3.5bn this year, while Orion Real Estate Development has announced investment of Dh.500mn in property developments.
Speaking about the project launches, the Chief Executive Officer of Dubai Investments, Khalid bin Kalban, said that the company will launch phase 3 of Green Community, a Dh.500 million project, and will re-launch Mirdiff Hills, a Dh.3bn project this year.

The Phase 3 of Green Community will have about 250 units, out of which, 200 would be villas. Further, the company plans to revise the concept of Mirdiff Hills and work on this project would begin after the third quarter, Kalban said.

During its launch in 2008, Mirdiff Hills was planned to be a mixed-use development comprising 680 apartments, 380 offices and 129 retail outlets. However, following the global financial crisis in 2009, the project was put on hold.

Dubai Investments has one of the largest land banks in UAE, spanning about 30 million square feet of gross floor area, owned by its subsidiaries like Dubai Investments Park, Dubai Investment Real Estate Company, Al Taif Investments and its joint venture Properties Investments.

The property market in the UAE is now amidst strong growth, which indicates its sound fundamentals and overall investor and business confidence across all sectors including aviation, tourism, retail, hospitality and trade, Kalban pointed out.

The development projects planned in UAE by various developers are as listed below:

MAG Group
A real estate developer, MAG Group, launched Dh.800mn worth of mixed-use project in Dubai Healthcare City. The project has been developed together with Dubai Healthcare City, and will include two hospitals spanning 260,000 square feet, an 80,000 square feet clinic, a residential complex of four buildings with total gross floor area of 430,000 square feet, a hotel apartment and retail space. The project is hoped to be ready by 2016.

Orion Real Estate
Orion Holdings has announced launch of Orion Real Estate Development (ORED) with work on at least five projects worth Dh.500mn. The company also plans to launch projects in Jumeirah Village Circle (JVC), a development near the upcoming Mohammed Bin Rashid City. The portfolio of the company already includes properties in Business Bay, Jumeirah Village Circle, Dubai Silicon Oasis, International City, Emirates Hills and Jumeirah Golf Estates.

Union Properties
Union Properties and National Properties, a unit of National Bonds Corporation have announced that they are developing an upscale residential project at the Green Community in Motor City. The first phase of the project includes construction of 78 villas and 58 apartments with double and triple bedrooms spanning 425,000 square feet. Work will be complete by 2015.  The company also plans to launch five towers and a project that replicates the popular ‘Champs Elysees’ in Paris’ at Motor City by mid-2014.

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