Despite high supply concerns, one more residential project has just been launched in Dubai and it is promising views of the world's tallest tower for a hefty price tag of more than 1 million UAE dirhams or close to $300,000.
Dubai-based developer Emaar unveiled on Thursday its latest luxury development, Burj Crown, a 44-storey building on Sheikh Mohammed bin Rashid Boulevard in Downtown Dubai, the home of Burj Khalifa.
The project is scheduled for completion in October 2023 and will add 400 apartments to Dubai's growing housing supply.
According to Luxhabitat, the tower that overlooks Burj Khalifa, Dubai Opera and Dubai Fountain will have one to three-bedroom homes costing upwards of 1,068,888 dirhams ($291,000).
Mohamed Alabbar, chairman of Emaar, said the tower will "undoubtedly become one of the most desirable addresses in Dubai."
Dubai's property market has been on a downward trend due to supply glut and prevailing negative sentiment.
Capital residential values of residential properties alone dropped by 10.4 percent in December compared to a year earlier, and analysts said that more declines are expected in 2020.
"Market sentiment played a major role in driving values across the city, this in addition to demand/ supply fundamentals, as the city is expected to face a glut of residential supply in the coming months, causing fear of further declines," Haider Tuaima, head of real estate research at ValuStrat told Zawya.
Data released by PropertyFinder showed that more than 32,000 villas and apartments in the freehold and non-freehold communities were completed during the first nine months of 2019. Another 13,216 units were expected to be completed towards the end of 2019.
Emaar has other projects in the pipeline or currently under construction. During the third quarter of 2019, it posted a net profit of 1.3 billion dirhams ($362 million), up 20 percent from the 1.1 billion dirhams recorded in the same period in 2018.
(Writing by Cleofe Maceda; editing by Anoop Menon)
© ZAWYA 2020