Despite a soft market, developers in Dubai real estate are continuing to offer a range of incentives, such as fee waivers, special features, discounts, rent-to-own, as well as partnerships with banks to attract new investors and end-users looking to take advantage of the lower prices.
According to recent report by JLL, the UAE residential market is expected to remain under pressure in the short term. However, the residential sector has recorded an increase in construction activity market, and stakeholders feel with the re-issuance of residence visas, there will be pent up demand in the market.
Shadaab Ahmed Shabbir Patel, managing director of Oscar Real Estate, says in Dubai real estate, prices vary based on demand and supply. “For instance, if there are 100 construction units, and the demand is for 90 units, there is an imbalance in the market that affects real estate rates,” he says.
The Oscar Group of Companies, founded by Shabbir N Patel, has developed multiple real estate projects in India and the UAE, including villa projects in Emirates Hills. “We were, in fact, the first expatriate company to launch projects when the UAE had begun to grant ownership of properties to foreigners.”
The current developments include an apartment buildings in Discovery Gardens (Building 84) and another in Jumeirah Village Triangle (Noor Apartment 1) that have been leased to tenants directly by the developer.
As a developer, Patel sees a potential in the Al Furjan area, a vibrant neighbourhood in Dubai that enjoys easy access and a great metro connectivity -- vital factors for tenants and buyers to move into the area. Patel is currently developing the Shadaab Noor Tower, an apartment building in Al Furjan. “Fully-furnished units will be available on rent,” says Patel, who says the trend is now to move in with minimum hassle and not worry about spending on furniture and other essentials.
Solar panels to drive sustainability
The ground-plus 12-storey tower has two-bedroom apartments with six flats per floor and three-bedroom penthouses on the top floors that are accessed by separate elevators. The building has a commercial space of 15,000 square feet on the ground floor.“The excavation work is complete, and basement work has started. It is expected to be completed by the end of 2021,” says Patel.
To secure demand, Patel has ensured that units are spacious and designed to maximize cross ventilation. “We have focused on sustainability and installed solar panels on the terrace so that the utility bills don’t go up and simultaneously we are able to protect the environment,” says Patel. The building also has a clubhouse and a swimming pool.
The fundamentals of Dubai are strong, says Patel. The emirate provides excellent value for money, with properties offering best of facilities with attractive payment plans. He believes the current prices in the market are perfect for first-time buyers to invest.
“With Expo 2020 Dubai taking place next year we hope to see more jobs being created. I am hoping the population inflow will increase the demand for residential properties,” he adds.
- Inputs by Hina Navin