Dubai:
For property investors with money to spare, the Al Barari development in Dubai might be able to offer them a few options.
The community has just seen the release of 33 super premium villas carrying price tags of between Dh20 million to Dh35 million on plots of up to 75,000 square feet.
Fifteen of the units are to be delivered by next month and the others before the year is out.
The promoter, Mohammad Zaal, does not reckon he is taking a calculated risk by launching properties with such a steep asking price.
“The Reserve is our latest offering which was launched in response to overwhelming demand from customers who wanted to customise their dream home within a unique setting,” said Zaal.
Phase 1 of the development is complete, and features 189 villas of which 95 per cent have been handed over. Now comes The Reserve and there is more to come from the pipeline.
“Phase II aims to introduce Al Barari to a wider audience, and will see the creation of a boutique hotel, retail offerings and a further residential development,” Zaal added. “For now, we are focusing on our latest launches including The Farm, Greenworks and now The Reserve. We will announce plans for Phase II in due course.”
Premium properties in Dubai are starting to get a lot of traction in recent months, much of which has been led by regional investors looking for a safe haven status from conflicts and uncertainties in the wider Middle East. That has also been the prompt for a handful of local developers to test the waters with new launches, and especially featuring high-end real estate. Nakheel has had a couple of high-profile launches and so did Emaar.
But with asking prices of Dh20 million plus, Al Barari’s latest offering could yet ratchet up the stakes within the prestige category.
But the premise of what investors are looking for is clear enough. “They are searching for properties that will give them a good rate of return,” said Mario Volpi, head of residential sales and leasing for Cluttons in Dubai. “The key is pricing.”
That is why properties on the Palm have been getting a lot of interest. Fnished properties currently command an average price of Dh800 to Dh2,000 a square foot for apartments and Dh2,000 to Dh2,800 for the villas. For the more upscale among them, this could even go up to Dh3,800 a square foot.
“Historically, the top end of the market has been more recession-proof,” said Cecilia Reinaldo, partner at Fine & Country. “We have experienced that properties over Dh5 million are more end-user based and owners with a long-term view.
“For instance, golf course properties, specifically in Dubai, hold incredible value and although buyers are not necessary golf players it has become a must for the more discernible buyers.”
