Monday, Feb 16, 2009
Gulf News
Dubai: Over 9,000 affordable units are to be released on to the market as part of a new development, the Dh2 billion Al Khail Gate in Dubai.
The development is tucked away between Shaikh Zayed Road and AL Khail Road and will offer a total of 9,139 apartments available to rent.
Al Khail Gate is a gated community and comprises 82 residential buildings.
Phase one, with a construction value of Dh700 million, is made up of 3,475 apartments in 49 buildings. It is fully leased and has already been handed over to tenants.
Phase two, constructed at a cost of Dh1.3 billion, is made up of 5,664 apartments in 33 buildings and is in the process of being handed over. Both phases offer studios, one and two-bedroom apartments. Phase two also has three-bedroom apartments.
Construction has finished, but the landscaping is expected to be finished by the end of the second quarter.
Prices are comparable to other affordable developments already present in Dubai. For example, prices for a studio in Al Khail Gate start at Dh48,000. Prices for one-bedroom units start at Dh65,000, depending on the size and phase.
This is good news for Dubai tenants who are being squeezed out of the market by high prices.
Although the real estate index does not give average rates for residential apartments in Al Quoz, it says that a two-bed villa has an average rent of Dh150,000.
"We planned this a long time before [the financial crisis] as there has always been a need for affordable housing in Dubai. And we wanted to be the first to venture into this segment of the market," said Saeed Bushalat, chief executive of Salwan Property Management, a subsidiary of Dubai Properties Group, developer of Al Khail Gate.
Salwan will be responsible for the management and administration of the project.
There has been an increasing trend among landlords in Dubai to be more flexible when taking rental payments.
Earlier, landlords were demanding one cheque to cover one year's rent, forcing many tenants to take out personal loans, but now the mentality has shifted towards a 12-cheque policy, making life easier for tenants.
However, Bushalat says that the general rule of thumb for tenants in Al Khail Gate will be three cheques.
The company also has another affordable residential development, currently in the design stage, in Dubailand.
Al Khail Gate also includes parking facilities, 24-hour security and facilities management.
Gulf News 2009. All rights reserved.
