PHOTO
Dubai-based Samana Developers is planning to develop two new residential projects in the emirate and start a new short-term rental business, a top company official told Zawya.
The Dubai-based company has two projects under construction and awarded the contract for a third project this month.
Samana is now working on the designs for the new projects, its General Manager Alan James Gammon told Zawya.
The two projects currently under construction are the 122-unit Samana Greens, which is scheduled for handover in June 2020 and the 205-unit Samana Hills, which is expected to be handed over in the fourth quarter of 2021.
"We have fourth and fifth [projects] already in the design stage," Gammon said, adding, the company has a land bank of 55,742.824 square metres (sqm) in Dubai.
"The superstructure [for Samana Hills] is expected to be completed by September 2020," said Gammon on the sidelines of the launch event for the 100 million UAE dirhams ($27 million) Samana Golf View, the developer's third project in Dubai.
He said the 233-unit low-rise development will break ground in August and is scheduled to be delivered within 30 months from ground-breaking.
Short-term rental business
The Samana executive told Zawya that the company is planning to venture into the short-term rental business, Samana Holidays, later this year.
It will focus on the group's real estate projects and manage properties on behalf of its customers.
“Samana Greens is going to be delivered in June, that's when Samana Holidays will start to grow and develop," Gammon said.
Holiday homes were permitted in Dubai, since 2015 and the sector has seen an average growth of 42 per cent per annum, with rented housing units growing to 7,005 units in 2019, according to data from Dubai Tourism.
While Samana Holidays would be open to working with existing platforms like AirBnB and Booking.com, Gammon said the company would also have its own offering targeting the local market.
"With the Chinese investing heavily, we will be looking with an agency in China to co-host homes for customers," he said.
Wooing Chinese investors
The company is aggressively wooing Chinese property buyers with its Samana Golf Avenue project.
"We are talking about 8 percent net yield return during construction itself, which makes it an attractive proposition for them," he said.
Gammon said the company has a Chinese team in Dubai and has opened a new office in Shanghai to drive sales.
Commenting on the team’s visit to China, Gammon said: "We were due to go in March, but due to current circumstances, we delayed the travel. We plan to go in June or July.”
In an earlier interview with Zawya Projects, Gammon had said the company envisaged 70 percent of sales for Samana Golf Avenue to come from the Chinese market.
American investors in Dubai
Gammon said he expects Expo 2020 to raise Dubai's profile among American investors, and especially South American real estate investors.
"Rental returns in the US are around 4 percent to 5 percent, so when you start talking about 8 percent, it opens up more opportunities for investors," he said, adding that Emirates airline is helping to open South American markets with direct flights.
(Reporting by Anoop Menon; Editing by Seban Scaria)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2020
