Residential Real Estate News
Dubai Developer Nakheel Reports Threefold Increase in YTD Sales
(DUBAI, United Arab Emirates) - Nakheel, one of the world's largest and most innovative real estate developers, announced Sept. 7 that year-to-date sales were showing a threefold increase compared with '07 full-year figures. This blistering sales pace comprises more than 6,100 unit that have either been sold (97 percent) or reserved, exceeding the Dubai-based developer's own ambitious targets.
Of the unit sales year-to-date, approximately 68 percent are apartment units, 27 percent are for villas, and 5 percent are for vacant land plots. These units were released in 13 staggered launches between from Jan. 1 through Aug. 31; an additional 2,650 units were scheduled to be released in 11 new sales launches this quarter.
"We are delighted but by no means surprised by this year's phenomenal sales success," said Manal Shaheen, Nakheel's director of sales, marketing and customer service at Nakheel, said leading up to this year's Cityscape USA conference and show in New York City. "Demand for Nakheel's Dubai properties continues to rise across residential and commercial sectors, and we see no signs of this demand abating. This year's sales have even been immune to the usual summer dip in July and August, which indicates just how healthy the market is.
"If you compare the expansive vision of Dubai to the construction capacity constraint, which is currently around 80,000 dwellings per year, and if you believe that population growth will continue to rise by 6-7 percent per annum--a conservative estimate, then by 2020 we will still not have enough residences to meet demand--even with the staggering amount of homes that Nakheel is delivering over the next two decades."
Nakheel is a key entity within Dubai World, one of the world's largest holding companies and supervises a portfolio of businesses and projects for the Dubai government across five continents and more than 100 countries. Among the investments are Nakheel Hotels, the company's hotel division that owns the largest stake in Kerzner International, which operates the esteemed Atlantis and One & Only brands, and a 50 percent share of the famed Fontainebleau Miami Beach that is being redeveloped.
Overall, Nakheel said it is providing 50 percent of Dubai's residential supply by building homes for three million people ranging from affordable housing to the ultimate in luxury living. The developer also plans to create 10 million square feet of retail space through its Nakheel Retail division.
"Through bold decisions made by our leaders, Dubai has established 'first mover' advantage in the region, with clear property laws and legislation for the protection of the consumer," Shaheen was quoted as saying. "Homebuyers, including overseas investors, can buy property freehold, safe in the knowledge that legal watchdogs such as RERA (Real Estate Regulatory Agency) exist to protect their best interests. This protection has a vital role to play in the long-term success and stability of Dubai's real estate sector."
Dubai is increasingly becoming the business and tourism hub of the Middle East, and, with 1.7 billion people living within a four-hour flight radius of the Emirate, is set for continued future growth, according to Nakheel. Having already played a leading role in establishing Dubai as a leading tourism destination, Nakheel's planned tourism projects will include up to 250 new hotels--a 50 percent increase on the current number in the emirate.
The Palm Jumeirah alone is more than doubling the number of beachfront hotels in Dubai, with more than 30 hotels and 14,000 rooms. Numbers of hotel and hotel-apartment guests in Dubai continue to show strong year-on-year increases, with 500,000 more guests in 2007 than 2006.
