Newly-launched Dubai villa projects claim sell-outs

The slow rate of growth being witnessed in property prices and delcine in number of real estate transactions have not deterred Dubai developers from launching new projects.

In the last few weeks, two developers have announced projects in Dubailand – once touted as the leisure and entertainment district for the emirate. And these developers, in fact, have even claimed to have sold their units, put for sale, on the launch date itself.

Damac Properties said the first release of houses in Akoya Oxygen, a master development in Dubailand, have been sold out and that, too, in record time.

[Artist's impression of Villa Lantana, a freehold villa community in Al Barsha South]

The master development spreads over 55 million square feet in Dubailand and will have the “greenest” living spaces in the emirate with parklands, green open spaces and private gardens, according to the developer. The project will include an 18-hole championship golf course designed by an international golfing star due to be announced soon.

”On a project of this scale and size, over 55 million sqft, the open spaces, amenities, gardens and water features will take up approximately 50 per cent of the land and this will create a very attractive place to live and our clients recognized this value. What we saw was the appreciation of clients and investors who proved to be very aware that ‘green is the new black’,” Ziad El Chaar, Managing Director, Damac Properties, said.

[Artist's impression of Villa Lantana, a freehold villa community in Al Barsha South]

Five-bedroom houses, priced at Dh2.5 million, were sold out, the company said, without giving the numbers of units sold.

Naseem in Mudon

Dubai Properties (DP), the development company of Dubai Properties Group (DPG), said the newly-launched Naseem townhouses in Mudon development have been sold out.

“With starting prices of Dh2.5 million, the units offered have now sold out at the development since its launch,” the developer said, adding they had to put additional units on the market to cater to the high demand from investors.

[The first release of houses in Akoya Oxygen sold out]

Mohammed Alhabbai, Chief Officer of Urban Planning and Infrastructure at DPG, said: “The response we have received for Naseem confirms that DP’s development approach is aligned with the needs of a growing city, from both an end user and investor perspective.”

These sold-out releases remind of the year 2006-2007 when projects were sold out in couple of hours of launch. However, things stand different in terms of developers having to pay full for the land and deposit guarantee money with the Dubai Land Department to ensure completion of the project.

[The first release of houses in Akoya Oxygen sold out]

Phidar Advisory, a property consultancy, has, however, said nominal prices for single family homes (villas) declined four per cent and apartments declined 0.6 per cent as per the analysis of the first six weeks of Q3 2014.

Oversupply fears have been ruled out

HSBC Global Research said earlier this year it expects Dubai to see a supply of 90,000 new units by 2018, but no oversupply in the market.

“We believe that we have not yet reached the peak of the cycle, and that the market can continue to absorb the expected supply additions over the next few years, even at a population growth rate below 5 per cent,” the global bank said.

Villa Lantana

Another company joining the bandwagon of new launches is Tecom Investments, a subsidiary of Dubai Holding.

The company has announced Villa Lantana, a freehold villa community in Al Barsha South.

[Artist's impression of Akoya Oxygen, a master development in Dubailand]

“Construction is currently underway with project completion set for Q4 2015,” the company said.

With the starting price of Dh2.37m, Villa Lantana’s 440 homes will be three, four and five-bedroom detached and semi-attached family homes.

Buyers have the choice of 17 different villa designs and 11 floor plans with the project having a retail centre, parks, playgrounds and sports centres with gyms and pools, sports courts and outdoor jogging tracks.

“Villa Lantana enjoys an excellent location and a freehold status, a combination that is a rarity in Dubai especially for residential villas.  We are confident that this new residential villa project will prove to be both an astute investment and a real community where families can grow and thrive,” said Badr Al Gargawi, Chief Executive Officer, Development & Planning Division, Tecom Investments.

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