New Ritaj development hits Dubai market with 2,000 plus units

Dubai:Sale and rental values in Dubai’s mid-tier property market could come under stress with a new development releasing as many as 2,024 apartment units in one go.

The units are spread out over 11 buildings in Dubai Investments Park and are part of the Ritaj development from Dubai Investments Real Estate. Rents start from Dh23,000 a year and is also being backed up with a rent-to-own scheme.

The release comes just when rentals in mid-tier residential locations — both freehold and non-freehold — within the emirate were showing signs of stability and even had some landlords looking to update the lease terms on their properties. Also, given that the new units are located in Dubai Investments Park, they could even attract interest from professionals working in Abu Dhabi but prefer to reside in Dubai. (The developer makes it a point to state that Ritaj is an hour’s drive from Abu Dhabi.)

“Customers in this property segment are very price sensitive and they will surely do their homework when it comes to obtaining real value for their money,” said Mohanad Alwadiya, managing director of Harbor Real Estate. “The introduction of 2,024 new units within a green gated community will have a strong impact on the older and less equipped communities.”
The developer expects to attain anywhere between 70 to 80 per cent leasing at Ritaj over the next three to four months as against the industry average of six months. The coming weeks will also determine what sort of impact the project will have on the wider Dubai property marketplace. Industry observers continue to raise concerns over the amount of new supply getting released and further distorting the demand-supply gap.

But Ritaj would benefit having clearly identified its core clientele, according to the developer. “The main and long-term objective of the project relies on providing small families with a lifestyle beyond their expectations,” said Obaid Al Salami, general manager of Dubai Investments Real Estate. “I think Ritaj has achieved this goal and provided solutions based on customer insights and interests.”

To sweeten the deal for future tenants, and the emphasis is very much on being seen as a family community, Ritaj will also host a mall featuring 50,000 square feet of retail space which, of course, includes a supermarket. The apartments are split across 1,343 studios, 447 one-bedroom, 194 two-bedroom and 40 three-bedroom units. A leasing campaign backed up by multiple incentives was launched yesterday.

The timing is crucial. Real estate sources have spoken about increased activity at brokerage firms as residents scout around for new premises to move into ahead of the summer break. It is in this context that the mid-market is getting a lot of attention. For Ritaj, leasing enquiries are averaging 70 to 80 leads a day since the marketing launch. More than 50 units have completed the leasing.

The consultancy, CBRE, in its first quarter overview for Dubai’s property market reckons that the residential sector will see area-specific strengthening as developed locations become increasingly scarce. Dubai Investments Park — and the new residential development within it — will be waiting to see if they emerge as beneficiaries from this trend.

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