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Dubai's developers are now starting to use completion timelines as a unique selling point for off-plan projects. With demand for ready properties continuing to run high, and simultaneously depleting available stock, developers are rushing in to build new and, just as important, deliver within the shortest possible time frames.
''Based on feedback we have had over the last three months, there's a lot of demand build-up for ready properties, especially mid-tier ones,'' said Juwaad Beg, CEO of Al Madinah Al Raeda Real Estate, a developer. ''They are selling faster by attracting cash buyers and at the expense of pricier off-plan developments. This is where the action is, and it will get more so with the steady increase in resident visas being issued in Dubai.''
Beg's company is preparing for the launch of a project at Dubai Sports City which will create another 750 units. But more to the point, his intention is to finish completion within 24 months from the start of construction and thus have it as a hook to attract potential buyers.
''Subject to Rera (Real Estate Regulatory Agency) approval for the project's escrow account, we are in a position to launch within days,'' said Beg.
The project will take up four plots and will have an integrated L-shaped design. This way, the developer says, 80 per cent of the properties will be assured of views of the Els golf course. Featuring 15-storeys, the base price for an unit is to be set at Dh750 a square foot. This compares with the Dh800-Dh1,000 a square foot completed properties in Dubai Sports City fetch currently. The developer intends to sweeten the offer by offering furnishing and white goods along with the units.
The developer's portfolio features other projects in Sports City, both completed and ongoing, and under the 'Elite' branding.
According to market sources, there is still enough spare capacity in the construction industry to take on the steady flow of new projects being mobilised. In the case of Al Madinah Al Raeda Real Estate, in-house construction resources are being mobilised.
Meanwhile, Sports City can lay claim to be one of the most active project sites in the city. Empire Arabia has got two projects at the master-development and these form part of the six that were acquired by it from Best Homes.
Empire Arabia has brought in Q Developments to manage and deliver these projects. Of the two in Sports City, work has reached the seventh floor on Global Golf Residences 2, while Q Developments is seeking a change of use for Rescom Tower, originally meant as a mixed-use scheme. According to Safi Qurashi, CEO of Q Group, ''We have already been in contact with investors here in the UAE and as far afield as Pakistan, Russia, India, the UK and Canada. All have expressed relief that the projects are being revived. Each are now being offered various options depending on their individual circumstances, and we're working closely with Empire Arabia to deliver all the projects.''
''There's a lot of new stock headed for the finish line in the next two years,'' said Beg. ''If Dubai's resident base continues to expand as it has done in the recent past, there will be no shortage of tenants and potential buyers. The challenge would be to meet the construction schedules.''
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Source: Manoj Nair, Associate Editor, gulfnews.com