For Australian Chris Humphrey, his Tiara Residence apartment is "the keeper". Chris has lived in Dubai for seven years and during that period has bought and sold a number of properties.
The proceeds from this went towards funding his unit at Tiara Residence, which has views of thebeach and the Gulf. "I'll be selling this when I'm old and grey," he says.
Like other apartment complexes on Palm Jumeirah, Tiara Residence's resort-style facilities are part of its appeal. These include an infinity pool, private beach, gym, café and children's play centre.
This style of development - most of which were sold off-plan during the property boom - originally targeted investors looking to attract top-dirham leases. But with prices falling, they now make sense for owner-occupiers.
Zabeel Properties, the project's developer, says the facilities and units are top-notch. The apartments, most of which have sea views, feature Bosch kitchen appliances, wooden finishings, high ceilings (2.8-3.2 metres) and automated home-entertainment systems.
"We only use top of the range. Zabeel's philosophy is to use grade A consultants and contractors. And you can see that in the finished product," says Martin Bell, the company's COO. He adds that its facilities management team ensures capital appreciation.
Situated on the Trunk, the development has an extensive landscaped area that stretches down to the beach and the pool. The gym, which has sea views, is one of the best equipped in Dubai. There are watersports, organised kids' activities plus tai chi sessions on the beach. Everything you'd expect from a resort.
The good life
Tiara's not alone, though. The Palm Residence, an IFA Hotel and Resorts (IFA HR) project within the Al Nabat and Al Haseer buildings at Shoreline Apartments, also has a beach club vibe. The Palm Residence, handed over earlier than Tiara, was a prototype for resort-style projects on the Palm. Residents have access to beachfront, pools, retail, a restaurant, massage salon and the option of a gym and health club membership. IFA HR runs leasing programmes for these units and its other Palm Jumeirah project, the Golden Mile, which does not have a beach frontage.
Piaras Moriarty, vice-president, client management at IFA HR, says the firm's mixed-use resort developments have been received well. "The benefit of having a range of different elements within projects - and we're seeing this at Shoreline - is that it really allows you to offer the end-user a much richer experience."
Among other developments on the Trunk are Nakheel's Marina Residence, which has waterviews but no beach, as well as the upcoming Mövenpick's Oceana Hotel and Spa and IFA's Fairmont Palm Jumeirah. A few resort-style projects on the Crescent are scheduled for handover in 2010 and 2011. The Emirates Palace Group is developing the Kempinski Hotel Residences, Palm Jumeirah, of which 242 units are currently being delivered, and the Emerald Palace Kempinski Hotel, due for delivery in 2011.
Then there are IFA HR's furnished residences at the Kingdom of Sheba, a Fairmont-managed resort, which is currently under construction. Owners will have access to a clubhouse, swimming pool, beach and concierge services. Investors will have a guaranteed several weeks of occupancy every year or the option to exchange this for time at similar Fairmont-managed residences worldwide. Also on the Crescent is Zabeel Saray, which will be launched this year. Developed by Zabeel, this palatial enterprise will consist of a hotel, restaurants, a spa and 38 residences, which will front either a beach or a lagoon-like swimming pool. To be offered in three styles, the Elissa (four bedrooms) and Zenobia villas (five bedrooms) will be 6,501ft² and 7,061ft² respectively, while the five-bedroom Sheba residences will be 16,684ft².
Leasing schemes
The option of managed short-term leasing is a carrot for investors, especially those from abroad. Sean Butler, director of sales and marketing, explains the offer.
"We've started a rental guarantee scheme, in which clients purchasing a unit from us have the option of leasing it out with a 7.5 per cent per annum return for two years. This will be paid out quarterly in advance, so a prospective buyer or investor can look at purchasing a unit and not having the hassles of leasing it out." Apartments range from 1,309ft² to 5,150ft² for the four-bedroom penthouses. Currently, one-bedroom apartments start from about Dh1.98 million, two-beds from Dh2.6 million and three-beds from Dh3.6 million.
While Chris lives in Tiara and rents out his Dubai Marina apartment, he sees the appeal of a leasing scheme. "If you're looking to buy it as an investment and let it out on a short-term basis as well, this is virtually like a hotel. There are not many developments where you have such facilities."
So what drew him to invest here? "The main reason I bought here was the aspect - I've got an apartment that overlooks the pool and the beach. So just the quality of development attracted me - this is the ninth property I've bought here; this is where I've put all my winnings."
With rental yields down in Dubai, buy-to-let is a risky option. But for prospective owner-occupiers, prices are more reasonable than during the height of 2008. Prices of completed resort-style developments in the Palm declined in 2009, says Mohanad Alwadiya, managing director of Harbor Real Estate. "Now the fundamentals of purchasing or leasing real estate come to the fore - location, quality construction, infrastructure, return on investment (RoI) and yield. For these reasons, projects like the Fairmont Residence, Marina Residence, Tiara Residence and Oceana are seeing an increase in demand [when compared] to other projects on the Palm."
As with any purchase, he recommends doing your research. "Investors should pay attention to the masterplan as a whole, as they don't want to pay a premium for a beachfront property then have a future project built in front of their own, blocking the view or access, as this will have a dramatic impact on the value."
Naturally, choosing a waterfront unit reduces the chance of being boxed out of a view. "Beachfront or waterfront properties will surely perform better in the short term and long term, as demand will always be higher on these units."
