Dubai: There is a change in dynamic in Dubai’s property market and local developers are going about shifting their games accordingly.
Over the last year and even more recently, new project launches in Dubai have principally been concentrated on the Palm and Downtown Burj. But with the latest launches, developers are now willing to push up the claims of other clusters. Dubai Property Group, which since 2010 was focussing on its build-to-rent portfolio, is now back with full-blown sales campaigns. One such is going on at the Mudon cluster in Dubailand, where the phase one sales involved 348 four-bedroom townhouses.
“Further project sales [in Mudon] will be announced as and when relevant,” said Khalid Al Malek, group CEO. “There are further phases in the masterplan; these include phase two which will consist of units in a similar gated community design. The final development will consist of approximately 4,000 homes and is expected to progress rapidly over the coming years.
“DPG’s portfolio spans both built-to-lease (BTL) and built-to-sell projects. From a BTL perspective, our strategy has always been to invest in enhancing our communities and improve the overall value of our assets. In fact, through this strategy we achieved occupancy rates of over 98 per cent across our BTL portfolio in 2012 by adding community facilities across our communities.”
Buyers looking at options beyond apartments certainly have a few options before them. The Meydan master-development saw the recent launch of Millennium Estates with 198 upscale villas.
Units in phases one and 2 have been sold out and the third sales phase will be good to go once the developer – G&Co – starts mobilisation on site within the next four weeks, according to Mahendra Singh, partner at SPF Realty, which is handling the sales side of the project. “There is no limit on an individual buying any number of units… but resale can happen only after paying 25 per cent of the sale price and the property being registered by Land Department,” said Singh.
For the Mudon townhouses too, there are payment requirements that need to be adhered to before a resale can be considered. “If a buyer wishes to sell their unit, they must complete 40 per cent payment and a transfer agreement must be made with DPG and the new buyer at the time of selling,” said Al Malek. “An administration fee is applicable.”
According to market sources, such projects could also attract a higher component of end-users. “These are the up and coming residential locations far removed from the saturation exposure received by the Downtown or the Palm from a predominantly investor perspective,” said a property analyst. “Dubai’s residential market requires other clusters to emerge, preferably where end-users can have a major say. Dubailand has the potential and scale and another key area is the residential offerings at Dubai Festival City.”