Deyaar, a Dubai-based developer, recently announced the launch of the first phase of its mega Midtown development situated at the International Media Production Zone recently, with unit sales beginning after Cityscape.
Over the past 11 months, Deyaar Development has worked with its team members, business consultants and architect consultants to introduce the perfect ‘mix’ into the project. Based on Deyaar’s study of the market and their evaluation of demand and supply, they are confident that Midtown incorporates the best mix for Dubai residents looking for a calm and family oriented neighbourhood.
“As Dubai pushes forward with its growth plans, the city needs an area for families with children,” Saeed Al Qatami, CEO of Deyaar, says. “Today, we have a lot of expats who are willing to make Dubai their home and this is the result of emirate’s enhanced job stability, world-class health facilities, as well as its growing international reputation as a 21st century destination city.”
“Development is sure to become the destination for convenience”
According to The Institute of International Finance (IIF), hosting Expo 2020 will lead to annual growth of 5.5 per cent in Dubai’s real gross domestic product (GDP). The outlook for economic growth over the next five years is expected to be very positive due to increased foreign investments. With 300,000 new jobs expected to be created, Dubai will attract more foreign talent.
Many mega projects in the infrastructure and real estate sectors have been launched in preparation for tourists and new residents. Midtown, one such project, will be composed of six districts. The first district in development, Afnan, includes seven residential developments comprising 659 apartment units in varying sizes, ranging from 425sq ft to 2,033sq ft.
“With our largest showcase event, Expo 2020, optimism Dubai will appear as a leading business and a tourist destination,” Al Qatami says. “The development is sure to become the destination for convenience.”
“Midtown is an integrated social mix we have spent one year designing. We are creating a project that offers a variety of culture,” explains Iyad Charchar, vice president of Projects and Engineering at Deyaar. “The project is intended to be in the next three to five years. the first phase within the next few months (Q1 2016) and set to be complete by the end of 2018.”
“We believe it has a very positive project outlook, given close proximity to Al Maktoum airport and the location of Expo 2020,” says Nasser Amer, vice president of Sales at Deeyar.
Attractions of affordable pricing and a “relaxed” payment plan
“Construction cost, land cost, financing, infrastructure – roughly between AED2.5 billion to AED3bn,” says Al Qatami.
“Hopefully, our pricing will be affordable and we will try to make a good payment plan to enable demand for the property,” states Al Qatami, who is targeting mid-income families.
Deyaar’s optimism for the future
Al Qatami confirms that there will be bank finance for this project. “When you look at real estate in Dubai, leasing is at a good today. With supply coming in 2017, we know for a fact Dubai is attractive and a lot of large enterprises have been continuously growing. I don’t believe that there will be any steep reduction in years,” he says.
Deyaar’s CEO explains that the decision to buy is always difficult. With stability and safety concerns in the Middle East rising over the past 12 months, residents have been reluctant to invest in property. However, Al Qatami believes that with a good product, investors can be persuaded to buy despite their concerns.
“Even if the real estate market is down, the project will fetch a return of investment (ROI) of seven per cent to eight per cent. Our sources of financing will definitely be the banks and the sales proceeds, along with our own financial inputs,” he adds.
“We chose this time to launch this project because it was introduced in last year’s Cityscape and we believe it is a good time to go to the market with it, we have added to the design and the affordability of the units – and, I think, this is what the market is looking for at the moment,” explains Amer.