Formal sales to happen before year end with villas at between Dh1,800-Dh2,000
Dubai: Dubai’s next big thing by way of a super-premium residential location, the District One in Mohammad Bin Rashid (MBR) City, will have the first formal sales launch of its villas before the year end, according to the developer.
Indicative launch prices could be in the Dh1,800-Dh2,000 range, which in itself would set a new pricing benchmark for upscale locations other than on the Palm and signature developments as the Burj Khalifa.
The developer, Meydan Shoba (an equal joint venture between Meydan Group and Shoba Developers), confirmed that pre-launch bookings are already on for District One, which will be an all-villa project totalling 1,500 residences set over a sprawling 700 acres. There will be multiple sales phases. The entire project, located along Al Khail Road and to cost Dh21 billion, would take between five to eight years to develop and also include a central park, water bodies, hospitality and promenade-fronting retail elements.
“It will be a low-density residential location and as a developer we can confirm that it will remain so,” said Ajay Rajendran, vice-chairman of Shoba Group. “The premium nature will come through not just from the quality of what will be offered but the fact that it will be the only new exclusively villa project being built close to the centre of the city.”
The developer is offering quite a few options on the villa designs, with unit sizes varying from 5,550 to 27,000 square feet. “Between 90-95 per cent of what a buyer would want in terms of design and scale is available through the options we have created internally,” said Rajendran. “On the pricing, we have not included the garage space, decking or open balconies into the offer.”
Cost of development will be met through internal reserves, debt and property sales. Initial construction works have started on site and the first of the major contracts are due to be awarded before the year is out.
On whether there wouldn’t be disruption to future residents in the initial phases from the continuing construction activity at others, the official said: “The development borders three existing and busy arteries and this would reduce any such concern.”
Existing villa values in Dubai have been on an upward trek ever since the market turned itself around and cash buyers began snapping up anything that was instantly available. Value gains of 20 per cent plus from the lows of 2010 are the norm for villas.
Rajendran sees a connect between the ongoing rental gains and demand for property. “As long as rentals are gaining, investors have less reason to worry about asset prices as the momentum is centred around strong fundamentals,” he said. “This is so even if the pace of rental growth slows down.”