The developer of Mohammed Bin Rashid Al Maktoum (MBR) City - District One, a Dh36.7 billion project in sales revenue, is not expecting any price correction in Dubai’s luxury property market.
“The market is stable and we don’t see any price correction… we see the market recovering by year-end,” PNC Menon, Chairman, Sobha Group told 'Emirates24/7'.
Meydan Sobha, an equally owned joint venture between Meydan Group and Sobha Group, is developing of the project, which was launched in May 2013. The latter is overseeing the construction side.
Read: Dubai firms launch multi-billion dollar MBR City District One project
“In Dubai, the impact of recession was only felt in the second half of 2009, but we saw the market bouncing back in 2011. Though the market has slowed down since July last year, we are expecting it to recover by year-end,” he asserted.
Earlier this year, global property consultancies predicted prices to decline by five to 10 per cent this year. Though a comparison of Dubai Land Department data reveals a decline in number of transactions, real estate transaction volumes have crossed Dh64 billion in the first quarter 2015 compared to Dh61 billion in the first quarter 2014.
In March 2015, a report by Wealth-X and Sotheby's International Realty said non-European ultra-high net-worth individuals - those with $30 million or above in assets – were investing in Dubai’s luxury property market with investors looking for markets with “safe haven” status.
In response to a question on whether the company will reduce prices, Menon ruled out any such possibility, stating, they will be launching phase three of villas by year-end.
The company is currently selling units at Dh2,500 per square feet, while waterfront-facing units are priced at Dh2,700 per square feet.
As per the company, construction on development is on at a fast pace with phase one, close to 300 villas, scheduled for handover in mid-2016.
Work on vertical structures as well as infrastructure, including an 8.8 kilometre bicycle and jogging track, are progressing rapidly. At present, there are over 4,000 workers on site, with numbers expected to reach more than 7,000 workers in a few months.
Menon believes 80 to 90 per cent of the units sold will be self-occupied by owners, with comprise over 52 nationalities such as Indians, GCC nationals, Russians, Britons, Iranians, etc.
Covering 1,100 acres, MBR City - District One includes a seven-kilometre stretch of Crystal Lagoons with an artificial beach and a 14 kilometre boardwalk.
“The delivery of the lagoons has been linked with completion of the residential phases, with the entire development slated to be completed by 2020,” Menon said.
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