Forbidden City will offer buyers affordable homes

Dubai: Construction of a new affordable housing cluster, Forbidden City, has started at International City, a top official said.

Dubai's master developer Nakheel last month unveiled Forbidden City in International City.

Inspired by the legendary Royal Court Palace of Imperial China, Forbidden City will be a residential neighbourhood offering its own extensive community facilities, enhanced by the range of retail and leisure offerings at International City and Dragon Mart.

Gammon and Billimoria has been awarded the construction contract of the project's first phase.

Forbidden City will be home to 4,000 low-rise studio, one- and two-bedroom apartments.

At the heart of the development will be a landscaped vista leading to an ornate grand mosque, the spiritual centrepiece of the community.

Work on the development started last April and final completion is expected in April 2011.

The price of a studio flat is about Dh730,000, while one-bedroom apartments start at Dh950,000 and a two-bedroom apartment starts at Dh1.4 million.

"This is about 20 per cent higher than the prices at International City," Rashid Obaid Al Helli, general manager of Nakheel's International City, told Gulf News.

"The contractor has already carried out 10 per cent of the works. They are about to start working on the superstructure. The overall project will be completed in four phases."

Prices

Prices at the Forbidden City is around Dh1,300 per square foot, which Al Helli said is still below the market price.

"Although the real estate market is not booming, it is still in good shape. Prices are coming to a more realistic level and becoming attractive to real buyers. At the Forbidden City there is still room for profits," he said.

"Having said that, the days of making overnight profits have gone. At Forbidden City we have seen some good response. About 40 per cent of the project has been sold out."

He said a buyer is forbidden to purchase more than three properties. "This is to eliminate the speculators and help the end-users to enter the market," he said.

Driver

"Real estate is driving our economy. There is panic in the market as buyers are becoming more mature, sophisticated and knowledgeable. They are more cautious.

"The chain of profit/premium cycle has shrunk. Small developers and brokers will disappear from the market, leaving more room for credible and stable players.

"However, this is a good time to buy."

He said Nakheel will retain some rental units in the project.

In addition to 4,000 homes, Forbidden City will feature 50 retail stores including food outlets, restaurants, internet cafés and boutiques.

Residents will also benefit from the close proximity to Dragon Mart, which offers the widest range of Chinese merchandise available outside mainland China.

Also located nearby is Lake District, a carefully designed residential community that offers stunning views of Al Warsan Lake, one of the few freshwater wetlands in the UAE.

The lake is home to more than 190 species of birds, including some of the rarest known to the Arabian Peninsula and neighbouring regions.

Nakheel has undertaken a series of measures to ensure that this habitat is protected and in the longer term there are plans to provide suitable facilities that will enable the general public to enjoy the wildlife there.