Dubai: Looking for a home in Dubai? With the promise of ample space and at a fairly affordable price? Then, head South.
In the next few weeks, multiple launches are slated at Dubai South with sub Dh1 million apartments and villas of up to Dh3 million with generous built-up areas and green areas. Developers are ready to make full use of the afterglow of the Expo 2020 – and catch early the potential that will be the District 2020, which is new destination that will emerge at the site.
Stratum, which until now had been involved only in the property management space, is getting into real estate development, with the launch of an upscale low-rise apartment building. A two-bedroom would be in the range of Dh1.2 million and over, and according to the developer the plan is tap into the need for residential options that District 2020 will create.
In terms of per square foot, developers are still maintaining the rates at Dh600-Dh1,000, and property values have remained stable through these years.
From being an owners association company, we felt turning into a developer is a most natural progression. We want to take advantage as Dubai continues to move into an end-user dominated market.
– Saeed Al Fahim of Stratum
District 2020 – which will retain some of the legacy pavilions from the Expo – will start full-scale operations from October onwards, with blue-chips such as Siemens Energy and DP World being among the key tenants. These and future workforces will need living quarters too, and that’s what developers reckon will feed demand for new offplan projects at Dubai South.
“Plots at District 2020 have yet to go on sale to developers – but my project is as close to District 2020 as can be possible,” said Saeed Al Fahim, CEO of Stratum, whose portfolio features more than 10,000 buildings in the UAE. The company also operates as the OA (owners association) management company at several properties in Dubai.
“Stratum has bought five plots at Dubai South and the aim is to create a Dh250 million community in time. We are looking at breaking ground in the next couple of months and only after will we start looking towards a sales plan. The sales effort will not be the standardized model we have seen in Dubai but curated towards a select group of end-users.”
End-users are in focus
Indeed, Dubai South could well be the next big end-user destination in the city, serving the residential needs of the many who are already working in the ‘districts’ within. Plus, in the next six to 12 months, District 2020 will add its own momentum.
Pipeline growing keeps
Dubai South, the master developer, too is in the fray, selling out the latest release of villas – 788 of them – at The Pulse Beachfront. The Dh900 million project has three, four- and five-bedroom villas, with prices from Dh1.35 million. (To spice up the quality of life for future residents, there will be a 200 meter wide ‘beach lagoon’ with a beachfront and a ‘half Olympic’ swimming pool.”
Completion of the initial phases is set for third quarter 2024. “The area has gained a lot of momentum, especially since many parts of the (Expo) exhibition will now be repurposed, as well as due to the advanced infrastructure around the Expo 2020 site , which is directly connected to Dubai South,” said a spokesperson for the developer.
How are prices faring?
Across Dubai South, “We anticipate a rough increase of about 15 per cent in pricing,” said Husni Al Bayari, Chairman of D&B Properties. “The Emaar villas in Dubai South (among the first to launch there) are still considered affordable as compared to anywhere else in Dubai. We believe over the next five years, areas around Dubai South will continue to develop, especially with the likes of Dubai World Central airport coming into the picture, and District 2020, which explains the steady price increases.
Dubai South will help drive sales to surrounding communities like Jebel Ali Downtown. One of the best factors of this human-centric community is connectivity – everything in the area is within a 15-minute travel distance
– Husni Al Bayari of D&B Properties
“It is anticipated that offplan sales will take-off within the next two- to three years once the full masterplan is completed.”
The coming weeks and the launches that will happen set up the stage for that.