Last Week In Real Estate: 17 February – 23 February
As another week draws to a close, the UAE real estate landscape continues to evolve. Last week was filled with project announcements, exciting updates and game-changing UAE property news. Read on to learn about the latest and the most notable news from last week in real estate – UAE edition.
AED 4.2 Billion Dollar Deal Signed For Deira Mall In Dubai
Master developer Nakheel signed a contract with UNEC to build Deira Mall, the largest mall in the Middle East. The mega mall in Dubai will span over 17 million sq. ft., with 4.5 million sq. ft. of leasable space. Anchoring Nakheel’s residential development (Deira Central), the mall is expected to be UAE’s largest in terms of leasable space. The mall will house over 1,000 shops, cafés, restaurants and entertainment. Deira Mall’s winning feature will be a retractable glass roof to transform into an open-air shopping mall during cooler months. Construction on the mall will begin in Q1 this year and is expected to be completed by 2021.
A New Skyscraper Is Coming To SZR
Scaling new heights on Dubai’s arterial highway, Sheikh Zayed Road, Azizi Developers is all set to build the second tallest tower in the UAE. At a staggering height of 532 metres (Burj Khalifa height – 830 metres), the tower has a combined cost of AED 4.2 billion.
Our plan is to have a hotel and residences and to be managed by our new hospitality division. We are in the process of registering the brand, and I’m not going to say anything about that now.” – Mirwais Azizi, Chairman of Azizi Developers.
The developer also mentioned that the tower on Sheikh Zayed Road will have 22 floors for residences and 100 levels for the hotel, marking Azizi’s first foray into the hospitality sector in Dubai real estate.
Shurooq Partners With Top Kuwaiti Developer For Sharjah’s New Retail Project
Planned for the city’s Mughaidir suburb, Sharjah Investment and Development Authority (Shurooq) announced a new Sharjah real estate project, in partnership with Kuwaiti developer Manabee. The new development will cover 65,000 square metres and house several restaurants, cafés and high-end recreational facilities for residents and tourists.
Sharjah maintains its status as a prime investment destination within the region and in keeping with its strategic plan, Shurooq constantly looks to explore ways to forge new partnerships with top investors.” – Sheikha Bodour bint Sultan Al Qasimi, Chairperson of Shurooq
Manabee is one of the top developers in Kuwait, with projects across the Middle East such as The Avenues Kuwait and The Avenues Bahrain. Mohammed Abdulaziz Alshaya, Board Chairman of Manabee, highlighted Sharjah’s “investment-friendly environment, sophisticated infrastructure and legislative framework” as a reason for the developer’s interest in the emirate.
Sharjah’s Waterfront City Project On Track For 2019 Completion
The massive AED 25 billion waterfront development in Sharjah is set to hand over its first villas in 2019. Managed and developed by Sharjah Oasis Real Estate, the colossal project spans over 8 natural islands off the coast of Sharjah with a total area of over 60 million sq. ft. Officials from Sharjah Oasis Real Estate said on Tuesday, that development on ‘Sun Island’ (one of the natural islands) was progressing steadily. Phase 1 entails the completion and handover of 321 residential units which include three, four, five, and six-bedroom villas.
More than 50% of the units in Phase 1 have been sold, which is a reflection of the confidence that people have, not just in the development, but in the property sector in Sharjah,” said Sultan Al Shakrah, CEO of Sharjah Oasis Real Estate
The waterfront development is the first of its kind in the Sharjah real estate market. It will consist of 1,500 villas/townhouses, 95 mixed-use towers, 14 hotels, and 800 berths in the marina. Talks for an internal tram network and RTA water taxis connecting to neighbouring emirates Dubai and Abu Dhabi are also in the pipeline.
50% Completion Rule For Off-Plan Properties
Industry sources indicate that off-plan property developers will have to reach the 50% completion mark to begin sales. This was previously at 20%, allowing smaller players to fuse funds into operations by launching sales early. The new ruling will inevitably slow down the development of off-plan projects in Dubai property market, weeding out developers with limited financial backing. Aiming to benefit the off-plan Dubai property market, the rule will eliminate the risk of buyers not paying post-handover and leaving the developer stranded. This move also has other benefits to streamline and shape the UAE real estate market.
The proposal to amend the developer’s law could spur consolidation among (smaller) investor-developers. A second benefit would be to improve confidence among investors that these projects would be completed — once you reach the 50% mark, there’s every incentive to finish the rest.” – Sameer Lakhani, Managing Director at Global Capital Partners.
Head of Research at JLL MENA Craig Plumb highlighted the risk of oversupply in the Dubai property market. With over 95,000 residential units launched in Dubai, the UAE real estate market is poised to face this problem. The 50% cut-off also limits the number of projects and screens cash-strapped developers who otherwise rely on funds from sales. Quality assurance is another byproduct of this ruling. With only financially-strong players entering the market, property buyers can be sure of high-quality building materials used in their properties.
That’s all, folks! You are now up to date with everything that’s happening in the ever-changing UAE property market.
Spending Friday night at home? You know you’ll regret it when Sunday comes! How about heading out to Dubai Food Festival? Or, if you’re not a foodie, check out our February events roundup to find out what else is happening.
