26 October 2009
Luxury properties on Nakheel's offshore development The World are set to return to the market in the second half of next year, Emirates Business has learned.
Individual developers of islands on the manmade archipelago postponed work and withdrew off-plan sales in the wake of the financial crisis.
But by summer, under-construction apartments and villas will go on sale as, it is hoped, an appetite for real estate investment will return. The World consists of 254 islands of which 175 have been sold and 33 handed over to developers.
"We are not selling at the moment because we realise there is no point doing it now," said Sofia Zigangirova, CEO of Stars Dome Realty, the real estate agent handling the Pangkor Laut project on Kazakhstan island. "But we will open the second phase of our project for sales when we complete the mock-up villa, which we expect to happen in May 2010."
The Pangkor Laut Luxury Resort, Residence & Spa Village project is a venture by City-D Development and will feature a five-star hotel and luxury residence, spa, marina and numerous leisure facilities, including eight restaurants and bars.
The residential component was originally designed to include 92 fully equipped apartments, 20 attached beach villas with private pools and 28 independent luxury villas with private marinas.
Stars Dome sold 40 per cent of the project's residential offering before the downturn and has since halted sales.
Select Property, owner of the France and Spain islands, said it was following a similar approach and had not pushed sales during the past year.
CEO Mark Scott said: "We have not been trying to market our high-end product over the past 12 months. With The World, we are starting to see a lot of interest now, specially in the villas, and we expect to be actively marketing again during the second half of next year."
The UK-based firm, together with Dubai's Select Group, announced a Dh4.3 billion private island paradise project called Aquitainia - a fusion of the France and Spain islands - in September 2008.
Premier Real Estate Bureau's Safi Qurashi, who bought the UK and Moscow islands, has adopted a more prudent approach and is due to announce its plans for the UK project shortly. It has put all plans for Moscow on hold.
"In terms of sales, we have not offered anything on the market yet and will do so when the time comes," he said. "We are very confident of selling. Once you understand the market you are in and you know you have adapted to the conditions today, not the conditions that could be in five years time, you will have confidence."
Despite the prevailing market conditions, Stars Dome Realty said it would not cut its prices when sales resumed.
"We will not drop our prices as we are stable for the next 12 to 18 months," said Zigangirova. "We have confirmed our cash flow for construction through shareholder's equity as well as from clients' payments."
Scott said his company would review its pricing strategy closer to the sale date. "When we remarket it will be in accordance with where the market is at the time," he said.
Asked about the negative speculation The World had attracted, Qurashi said: "People are not in the know and there is no information coming out because of the time period it takes to complete processes on such a project, so people do not see or hear of activity. People are making assumptions based on the limited information coming out.
"More prudent developers are saying today, 'I'm not going to do that again. I'm going to finish and deliver and let people see it'."
Luxury properties on Nakheel's offshore development The World are set to return to the market in the second half of next year, Emirates Business has learned.
Individual developers of islands on the manmade archipelago postponed work and withdrew off-plan sales in the wake of the financial crisis.
But by summer, under-construction apartments and villas will go on sale as, it is hoped, an appetite for real estate investment will return. The World consists of 254 islands of which 175 have been sold and 33 handed over to developers.
"We are not selling at the moment because we realise there is no point doing it now," said Sofia Zigangirova, CEO of Stars Dome Realty, the real estate agent handling the Pangkor Laut project on Kazakhstan island. "But we will open the second phase of our project for sales when we complete the mock-up villa, which we expect to happen in May 2010."
The Pangkor Laut Luxury Resort, Residence & Spa Village project is a venture by City-D Development and will feature a five-star hotel and luxury residence, spa, marina and numerous leisure facilities, including eight restaurants and bars.
The residential component was originally designed to include 92 fully equipped apartments, 20 attached beach villas with private pools and 28 independent luxury villas with private marinas.
Stars Dome sold 40 per cent of the project's residential offering before the downturn and has since halted sales.
Select Property, owner of the France and Spain islands, said it was following a similar approach and had not pushed sales during the past year.
CEO Mark Scott said: "We have not been trying to market our high-end product over the past 12 months. With The World, we are starting to see a lot of interest now, specially in the villas, and we expect to be actively marketing again during the second half of next year."
The UK-based firm, together with Dubai's Select Group, announced a Dh4.3 billion private island paradise project called Aquitainia - a fusion of the France and Spain islands - in September 2008.
Premier Real Estate Bureau's Safi Qurashi, who bought the UK and Moscow islands, has adopted a more prudent approach and is due to announce its plans for the UK project shortly. It has put all plans for Moscow on hold.
"In terms of sales, we have not offered anything on the market yet and will do so when the time comes," he said. "We are very confident of selling. Once you understand the market you are in and you know you have adapted to the conditions today, not the conditions that could be in five years time, you will have confidence."
Despite the prevailing market conditions, Stars Dome Realty said it would not cut its prices when sales resumed.
"We will not drop our prices as we are stable for the next 12 to 18 months," said Zigangirova. "We have confirmed our cash flow for construction through shareholder's equity as well as from clients' payments."
Scott said his company would review its pricing strategy closer to the sale date. "When we remarket it will be in accordance with where the market is at the time," he said.
Asked about the negative speculation The World had attracted, Qurashi said: "People are not in the know and there is no information coming out because of the time period it takes to complete processes on such a project, so people do not see or hear of activity. People are making assumptions based on the limited information coming out.
"More prudent developers are saying today, 'I'm not going to do that again. I'm going to finish and deliver and let people see it'."
By Sean Davidson
© Emirates Business 24/7 2009
