Dubai developer targets Millennials, UAE residents with smaller size apartments

Myra Properties, a real estate developer, on Wednesday unveiled its new residential project in Jumeirah Village Circle, targeting first-time buyers in Dubai with smaller-sized apartments.

Prices will start at Dh382,000 for a 406 square feet studio apartment in Crystal Residence, with rental yields as high as 13 per cent, company Deputy Chief Executive Officer Akash Kanjwani told Emirates 24|7.

“A smaller apartment gives you better rental return. A studio in JVC could be rented out between Dh45,000 and Dh50,000 a year and at the price point we offer the rental return could be 13 per cent,” he  said.

The reason cited for the higher rental yield is that the building will have split air-conditioning, which will put the onus of payment of the air-conditioning charges on the tenant since it will be included in the Dewa bill.

Global Property Guide, a website that compiles and analyzes property price performance of the world's big economies, does state that gross rental yields in Dubai are among the highest in the world, with smaller apartments offering rental income of 7.21 per cent.

# Apartment sizes

Talking about apartment sizes, Kanjwani said “smaller” units are a norm in international markets, citing Hong Kong having 750-square feet three-bedroom apartments.

“We know what are the sizes in international markets... you have to cooperate if you want spacious apartments. Yes, we have them in our project, but it comes with a price,” he added.

The project, which will be completed in April 2018, will house 225 dwellings of which 142 are studio units while the rest range between one- to three-bedroom apartments.

# Target Generation Y

The developer is expecting a large number of people from the Millennial Generation to become unit owners alongside existing residents of the UAE.

“The Millennials are the ones who are the first home owners and an increasing number are moving to Dubai. As Dubai Expo 2020 come near, it will create a lot of jobs, with these young people looking to move into their own homes as rents would be high,” he added.

Besides, a large number of UAE residents are looking to buy apartments, with Myra official expecting 40 per cent of the unit buyers will be renters who want to be owners.

# Payment plan

As majority of developers have started offering flexible payment plans, Myra Properties will also be offering two payment options to investors.

The first will be a construction-linked payment plan, which includes paying 50 per cent ahead of handover with the investors seeking home loan from banks for the remaining 50 per cent over the duration of 10 to 12 years.

Under the second option, the investor has to pay 10 per cent on booking, 15 per cent in six months and the remaining amount in 50 instalments, spread across January 2017 to February 2021.

“One of the problems we faced with Botanica, our first project in JVC, was not everyone was able to get bank finance. So, in order to give them long-term payment plan, we have decided to start selling at the time of construction, thus giving buyers the payment flexibility,” Kanjwani revealed.

Crystal Residence is located in District 11 of JVC, a master community developed by Nakheel. The development is at the crossroads of Al Khail Road, Hessa Street and Mohammed Bin Zayed Road and opposite the Circle Mall.

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