With rents and sales prices coming down sharply, Dubai's real-estate market has plenty on offer for everyone, from affordable housing to luxury living. However, there are a couple of luxury projects on the Palm Jumeirah that have managed to buck the trend — rental and sales rates at Tiara Residence and Oceana are showing an upward movement, driven by the spiralling demand. What is it that makes these two projects stand out?
Beachfront developments
Oceana is located on the trunk of the Palm, offering a lifestyle reminiscent of a resort. The project has always been a favoured destination for tenants and buyers alike, despite the global economic downturn. "Demand for apartment sales within Oceana has been consistently strong, with only 47 of the original 644 remaining available for purchase," says Elaine Jones, CEO, Asteco Property Management. "While we have seen some falls in pricing over the last two years, apartment sale prices in Oceana have always remained higher than initial release values, with the premium quality and location continuing to provide value for owner-occupiers and investors alike."
Oceana's units feature large balconies offering views towards Dubai Marina and they also boast floor-to-ceiling windows, high ceilings and timber bedroom floors. The units come with gourmet kitchens and Opus smart home-entertainment systems. Residents are also provided access to 24-hour security. The project has several facilities, including a private beach, large infinity pool and lazy river along with the West 14th steakhouse. What adds to Oceana's appeal is its proximity to key work locations such as Dubai Media City, Internet City and Jumeirah Lakes Towers (JLT), apart from many educational and medical facilities. As far as access is concerned, it is close to Shaikh Zayed Road.
Tiara Residence similarly has always attracted people who love a luxurious lifestyle close to the beach. "It has remained in strong demand despite the impact of the global downturn on many areas of the Dubai property sector," says Elaine.
The Tiara project has 644 units, comprising one- to three-bedroom apartments, and caters to both tenants and buyers, including owner-occupiers and investors. Like Oceana, Tiara is also in close proximity to major shopping centres and hubs in Dubai such as Dubai Media City, Internet City, JLT and the Mall of the Emirates. It is extremely popular as it is an ocean-front development, with each apartment featuring a balcony with views of theBurj Al Arab. "High quality design and materials feature throughout each apartment, including marble and timber flooring and gourmet kitchens featuring fully integrated Bosch appliances. Its other attractions include access toa 230-metre beach, a premium health club with state-of-the-art exercise equipment and qualified fitness instructors and a kids' club offering supervision and entertainment for children. Tiara's own beachfront bistro, Solis, also delivers relaxed dining options by day and night," says Elaine.
A resident's view
Amos has been living in Tiara Residence since 2009. He says he rented the unit when the development was first handed over. "The qualities that attracted me to Tiara then still remain the reasons why I enjoy living here today. Firstly, the specification and quality of the finishing within the apartments are to a standard that I believe remains hard to match. Secondly, the facilities of the beach club, pool and gym are first class. These are a key part of the Tiara development and rival even the high-end hotels in terms of what you get. Finally, the Palm location with its great views and direct private beach access is something I think is hard to beat," he says.
For Irina Antonova, Oceana is not just a place where she lives. As the managing director of Millionaire Group, which focuses on interior design, she has already done up about 15 apartments in the development. For her, the security and safety that Oceana provides is unmatchable and she cites that as one of the primary reasons why she moved there from a villa on the Palm. "I moved into my three-bedroom apartment when it was opened in July 2009. I like it because it is very safe for kids, and my son has plenty of space to run around and play. I am renting now but I am planning to buy a property soon in Oceana. I think Tiara and Oceana are among the most fantastic projects in Dubai."
Prices and rents
Tiara Residence and Oceana offer units at more or less similar prices and rentals. "Oceana is now coming up to its first anniversary since its handover and the prices have gone up probably 25 per cent in the last 12 months. Tiara is coming into its second anniversary since its handover and prices are higher than average and more than those at Shoreline Apartments. They climbed up quite dramatically two years ago but now they have levelled off and are similar to the prices at Oceana," says Andrew Cleator, senior sales executive, Ocean View Real Estate.
The launch prices for Oceana (in 2003-04) and Tiara (2005) were probably the highest in the market in terms of price-per-square-foot rate, says Andrew. These were Dh1,200-Dh1,500 per square foot, for both, while now it is Dh1,200-Dh1,700 for the best units, according to Ocean View. In the rental segment, one-bedroom units are available for Dh130,000-Dh150,000 and two-bedroom units for Dh160,000-Dh190,000, depending on the buildings. Of course, those closer to the sea with better views command a premium.
"Tiara and Oceana have seven buildings each, theyall have decent views, but three or four of them havethe best views, and the majority of tenants want to bein these particular buildings. These will achieve maybe25 per cent more in the selling prices than the others. The most preferred of all is the one on the outside looking to the new marinas which was opened by Nakheel recently across to the Atlantis. Here you also get the sunset view. So, three bedrooms on that side on a high floor cost Dh250,000. Those prices are on par with even theBurj Khalifa," says Andrew.
In Oceana, there are four buildings offering the best sunset views and that particular area is called The Sunset Strip. "In these buildings, you get the sunset views every evening over the Palm and then you get the afternoon sun. You can bask in the sun all day which you can't do in Tiara during mid- or late afternoon, because you are on the other side of the Palm," adds Andrew.
Despite fetching higher rental rates compared to the rest of the projects on the Palm, Oceana and Tiara still don't have many vacant units. For example, with Dh100,000, one can get a one-bedroom apartment in Shoreline Apartments. However, you have to be prepared to spend at least Dh30,000-Dh40,000 more if you want to rent a similar unit in Oceana or Tiara. This, when you can geta one-bedroom in Fairmont for just Dh70,000-Dh80,000.
No need for hard sell
Tiara and Oceana are a real-estate agent's dream; especially given the new market scenario wherein selling or renting a unit is not an easy proposition. Andrew says these two developments, which attract a lot of Europeans and Russians, sell themselves. "Clients want the property to tick all the boxes — lifestyle, the beach, the pool, the quality and so on. Oceana's popularity has increased with the launch of the new restaurant, West 14th, managed by the Mövenpick group. People who live there say it is like living in a hotel. Recently, they have started barbecues on the beach," says Andrew.
While the agents often recommend these two projects to clients, most of the time, buyers and renters come on their own. Andrew says the projects are getting a lot of mileage through word of mouth. People visiting their friends living in Oceana or Tiara also turn into prospective clients. "There is no need to convince people to live there. You have to just take them there and they will see what they can get. As they say, ‘The cream rises to the top' and Tiara and Oceana are classic examples," he concludes.
