One of Dubai's most spectacular urban developments, Downtown Dubai started attracting residents three years ago. The project is anchored by the world's tallest building, Burj Dubai, and one of the world's biggest mall.
German public relations consultant Oliver Stelling moved to the UAE in January 2005 from another boomtown, Shanghai. Within a year, Oliver had decided to buy into the property boom, not so much for his investment portfolio, but as a place to live.
"The idea of losing the opportunity convinced me," says Oliver from the airy heights of his South Ridge apartment, which has stunning views of Downtown Burj Dubai.
"Of course, I had heard of those who bought two or three years earlier when the freehold law was not yet in effect. I assumed that with the law in place, demand would go up even more. So in any case, it would be a safe investment."
Oliver zoned in on his choice of neighbourhood early in the process. "I never actually went house hunting in the full sense of the word, as the EMAAR showroom (the Burj Dubai sales centre) was just mind-blowing. The buying process was fast and relatively uncomplicated," he recalls.
Since Downtown Dubai is one of the city's most visible developments and EMAAR's flagship project, Oliver thought it would, in all likelihood, be on schedule and have good amenities.
As a prospective homeowner who did not want to waste money on rent as well as a mortgage, it was important that he could live in the neighbourhood he wanted, without having to wait for years.
"It's great seeing the entire area coming to life now," says Oliver, and one can see his point. While there is still a lot of construction work going on, access is a bit difficult and dust and noise prevail, Downtown Dubai residents already have a vibrant community in place.
Apart from the neighbourhood Spinneys supermarkets, pharmacies and groceries, there is the faux Arabian Souk Al Bahar housing a clutch of cafes, jewellers, souvenir shops, fashion stores, restaurants and bars. Souk Al Bahar is an extension of The Palace Hotel complex, which also has a spa and fine restaurants.
In fact, this precinct is studded with a staggering number of dining and entertainment options. There are the five-star venues at the Al Manzil hotel, Qamardeen, The Address and The Palace hotel (nine hotels are planned for this area) and several stand alone restaurants as well.
When the Dubai Mall opens at the end of this month, residents will be truly spoilt for choice.
But when Oliver moved into the area in October 2006, he was just the second party to do so in his tower block of 150 apartments. The joy of owning a home in the centre of the city was tempered by hassles.
"I do feel at times as if I am sorting out all kinds of teething problems, just because I come across them earlier. There are quite a number of quality issues but all this is easily offset by the place itself. In my view, location really beats all other factors, so that choice should be made very carefully," he says.
Of course the biggest payback has been the price appreciation. Oliver's two-bedroom, 1,400ft² South Ridge apartment had appreciated threefold in value by mid 2008. With the current softening in prices, the value has come down slightly.
"The listed price from EMAAR is about 2.6 times the purchase price. I think it's a bit less on the secondary market."
For potential home owners, Oliver advises that it is absolutely crucial to check out the developer's track record before making any decision.
"There are so many delays in property handover today that it makes sense to go with a developer who has demonstrated that they can deliver on time," he says.
"A few months of delay are commonplace and must be expected no matter what you're being told. If you live in a rented place and with an annual contract, allow a few extra months for taking possession of your property.
"There is so much that is in fact beyond anyone's control. But having to wait a year or more, as I have often heard, is unacceptable. Luckily it didn't happen to me."
South Ridge at a Glance
- A six-tower development within the Burj Dubai precinct, looking out on to Burj Dubai, The Old Town and The Burj Lake.
- Within strolling distance of the Burj Dubai Boulevard and its stylish boutiques, cafés, restaurants, The Old Town and The Dubai Mall.
- High rise buildings with one, two and three bedroom apartments; unit sizes range from 835 to 3,008ft².
- For enquiries, call Downtown Burj Dubai sales centre on 04 362 7168.
- The fine print: For access to gyms, residents pay extra for membership at the Hayya.
