Wednesday, November 18, 2015

Dubai developers launching projects at a slower pace

Dubai Properties has revealed that it plans to take a ‘measured’ approach to launch of any new project, to ensure that there is no supply imbalance in the local freehold market, a top official said.

According to Abdullah Abu Shabib, the Senior Executive Director, Customer Care and Government Relations at Dubai Properties, some of the projects are now being studied, and a decision will be taken only after careful inspection of all trends in the Dubai market.

The statement seems significant, taking into consideration the fact that Dubai Properties’ influence by way of its four major master-developments such as the JBR, Culture Village, Dubailand and Business Bay. Dubailand is a collection of multiple mini-master developments which include developments like Arabian Ranches, Sports City, and Akoya, Remraam, Arjan and Mudon too.

According to sources in the market, the master developers in Dubai, like Emaar, Dubai Properties and Damac will have to be more cautious of their new launches and take extreme care to ensure that there is no build-up of unsold housing stock. The market will also get some breathing space from the series of new launches that have taken place over the past three years.

For this year, most estimates suggest that about 20,000 new homes may be supplied into the Dubai market all through the year.

According to Abu Shahib, Dubai Properties, the projects are released based on what is required during a particular period and at Mudon is that at any time more releases are made, and more than 70 percent of phase three has been sold out. The first two phase of Mudon accounted for more than 1000 units, with units priced from Dh.2.7mn while the second phase includes larger units with individual plots in the range Dh.3.9mn to Dh.5.4mn.

Almost all of the homes in phase one has been occupied, while phase 2 handover may begin next month. Dubai Properties will release some of the five-bedrooms in early 2016.

The infrastructure for all projects by Dubai Properties at Dubailand is ready. Further, RTA has announced that the Hessa Road will make accessibility of Dubailand easier from Academic City all the way to Remraam. However, there is still long way to go before realizing the development potential that Dubailand has in it, says Abu Shahib.