Dubai: This is turning out to be another busy week or two at the Palm. And it can’t be otherwise with the launch of a full-scale mixed-use project by Seven Tides, while another developer — M. State — is all set to introduce a strictly limited edition of villas — only five of them — bearing a price tag of a whopping Dh70 million plus.
Clearly, Palm’s pull on the investor psyche — not to mention his funds — remains substantial.
“There remains still much to develop though nearly all the parcels are in the ownership of private developers rather than the master-developer (Nakheel),” said Simon Townsend, Head of Capital Markets — Middle East at the consultancy DTZ.
“While limited transactional data exists, one would envisage that the current range for such plots would be in the range of Dh600-Dh800 per square foot based on permitted built-up area — again subject to location and the permitted development rights.
“One of the final phases of the (Palm) development — the entrance towers above the monorail hub — will, we understand, shortly be rendered and which will potentially be one of the last pieces in the Palm puzzle.”
But well before that clicks into place, other developers are keeping the Palm pipeline busy. Seven Tides lifted the veil on ‘Dukes Oceana’, which will feature an upscale 273-room hotel — part of the Dukes Collection — and residences scheduled for handover in the first quarter of 2016. Going on sale April 14, There will be 185 studios and 42 one-bedroom units, and with prices ranging from Dh760,000 to Dh2.5 million.
“International high networth individuals consider lifestyle appeal as a major criteria when looking to grow their investment portfolio and Palm Jumeirah fits the bill in every respect,” said Abdulla Bin Sulayem, CEO, Seven Tides, in a statement. It is also offering a guaranteed return on investment of 10 per cent. The company’s other interests include Anantara Dubai The Palm Resort and Spa, Anantara Residences Dubai The Palm, and Ibn Battuta Gate Hotel.
The five bespoke villas from M. State are located on the tip of Frond M, and the developer has not held back on the design and features. There is double-height entry and extensive use of glass. The properties — with four bedrooms and more — have private balconies and master suites linking to a separate office and Jacuzzi on the sun terrace.
Over the last 24 months and more, Nakheel too has had multiple releases of new residential projects on its flagship development. That apart, it also is busy with the 418,000 square metre ‘Nakheel Mall’ on the island, which is scheduled for completion next year, and which would further raise Palm properties’ profile as an investment choice.
“The Shoreline apartments have continued to hold their rental value and with the recent restructuring of the retail component of The Golden Mile it is envisaged this stability will continue,” said Townsend.
The Palm’s Crescent is where a lot of the action is taking place on the project side — “A number of hotels are now operational and construction works ongoing on many of the projects that had slowed down during the downturn,” said Townsend. “Developers have had to adjust their financial expectations and many had to go in for incentivisation of purchasers with enticements such as guaranteed rent returns.”
