Dubai's Nakheel sells nearly 250 properties, totaling $163.38mln

Developer sells properties worth $163mln in last four months despite COVID-19

  
Nakheel awards construction contract for sports, health and leisure hub at Jumeirah Park. Image for illustrative purposes.

Nakheel awards construction contract for sports, health and leisure hub at Jumeirah Park. Image for illustrative purposes.

Nakheel/Handout via Thomson Reuters Zawya

Dubai’s Nakheel sells nearly 250 properties, totalling $163.38mln

Dubai’s Nakheel, developer of the Palm Jumeirah Island, managed to sell nearly 250 properties, with a combined value of 600 million UAE dirhams, within the last four months, defying the overall slowdown in the real-estate market.

Most of the buyers snapped up ready-to-occupy family villas away from densely populated city centres such as Nad Al Sheba and Al Furjan near Jebel Ali.

In a statement shared with Zawya, the developer said there has been a surge in buyers, including first-time and female investors, entering the property market recently. Its units at Phases One and Two in Nad Al Sheba, which is known for its peaceful surroundings, were sold out in June.

According to Aqil Kazim, Nakheel chief commercial officer, the latest sales transaction data showed that there is still a demand for residential properties amid the current economic turmoil.

“This hive of sales activity, achieved despite challenges associated with the COVID-19 pandemic, further highlights investor trust in Dubai,” said Kazim in a statement.

“The figures speak for themselves. There is an appetite for quality, ready homes, with investors taking advantage of attractive terms to get on the property ladder, or to upsize,” he added.

So far, Nakheel’s Nad Al Sheba development sold a total of 205 villas. A third phase of ready-to-move-into units in the area has also just been released. In the developer’s project in Al Furjan, just off Shaikh Mohammed Bin Zayed Road and close to Discovery Gardens and Ibn Battuta Mall, at least 36 ready homes have been sold since March.

With a lot of its properties sold out, Nakheel is expected to release more completed projects this year.

“Having sold out Nad Al Sheba phases one and two, we are now selling the third phase on a daily basis and will release more ready homes as the year goes on. Our customers include a growing number of first-time buyers, and we are witnessing an increase in female investor, too,” said Kazim.

Consultancy firm ValuStrat had earlier reported that sales of villas and apartments in Dubai have increased following the easing of coronavirus-related restrictions. Plummeting sales prices play a major driving factor, with buyers snapping up completed units at beaten-down prices rather than off-plan properties.

“As lockdown restrictions gradually eased, the first three weeks of June witnessed ready property sales improve. However, off-plan ales faced a continued downward trend due to minimal new project launches, down 37 percent since May,” Haider Tuaima, head of real estate research at ValuStrat, told Zawya earlier.

Nakheel’s ready units include residential properties with a price tag of 2.8 million dirhams. Its development in Nad Al Sheba is quite popular among the Emirati community.

According to reports, the developer imposed some salary cuts in April as the company attempts to “secure the continuity” of its business amid the coronavirus pandemic.

(Reporting by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

#Real Estate #Nakheel #Dubai #COVID-19

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