Wednesday, May 7, 2014

After recovering from four years of economic slump, Dubai property market started moving towards recovery in year 2012. The recovery process continued throughout the year. And the market showed total recovery in the first quarter of year 2013. The overall economic growth and improved market confidence positively impacted the real estate sector and emirate developers started thinking about announcing the launch of new projects and re-launch of paused projects that were stalled due to lack of funds. Having observed the positive sentiment of market Dubai Land Department has taken an initiative to facilitate everyone interested in investing stalled projects. They planned and implemented a new regulation that bound concerned investors to pay the unpaid amount for revival of paused project. The regulatory bid will not only provide funds to developers rather it will also compensate original investors of the project.

Expo 2020 and infrastructure and real estate boom in Dubai

Cityscape Global the Middle East largest international real estate development and investment event, which was held in October 2013, showcased the revival of several mega real estate projects. Throughout the three days of this event, it was observed that projects that had been assumed dead came out of the blue and reanimated despite that they are not receiving the same level of appreciation as they received previously. Moreover, the successful win to host an international event of World Expo 2020, leads towards more announcements and awards. Soon after declaration of this gigantic win, several announcements were made to start huge infrastructure projects including extension of metro, double-decker highway on Sheikh Zayed Road, an 11 km broad walk around the edge of Palm Jumeirah. Besides these infrastructure projects other sectors of Dubai real estate also showed significant improvements. Particularly, the luxury residential, retail, leisure and hospitality sectors are on the top. Developers are working with original investors to proper plan re branding of their paused projects. They are diversifying their vision and started working on lucrative hotel-residential projects.

Expert predictions about market trends

According to international real estate consultancy firm Jones Lang LaSalle, the recovery of Dubai property market is broad based covering prime, secondary and affordable locations across the city. According to their analysis rent and sale prices will continue to rise at measurable rate during 2015. Positive market trends bestow enough confidence to local developers as they stepped up to restart their paused schemes along launching of new projects.

Dubai property projects re branded in year 2015

During the era of global economic recession several mega developments were dusted down due to lack of funds and reduction of confidence among investors. But soon after the recovery of property market and rebound of economy, developers started pondering to re brand their projects which were halted due to unfavourable market conditions and lack of funds. Leading developers like Nakheel, Emaar, Dubai Holdings, Union Properties, Falconcity, Omniyat and Damac suspended work on some of the mega projects originally launched in 2008 before the global economic recession.

Project and Developer Brief Project Detail
Deira Island-a Palm shaped island by Nakheel
  • Launched in 2002 but the project was suspended. 
  • Smaller version with 1400 retail units and restaurants re-launched again in 2013. Further there will be a 250 room hotel and an amphitheater
The Lagoons  a master planned city by Dubai Holdings and Emaar Properties
  • Launched in 2006 later paused in 2008 due to credit crunch and real estate collapse. 
  • Restarted in 2013, the development will spread over 6m sq m which will include a mixed use development Dubai Twin Towers, a CBD, hotels, schools and healthcare facilities.
The Opus an office tower in Business Bay by Omniyat 
  • Launched in 2007 with completion date in 2010. Project was held up due to crash in property market. 
  • Re-launched in October 2013 with addition of a five star mixed-use hotel and an apartment project. 2015 is the expected date of completion and hotel to be open in the mid of 2016.
The Pad Omniyat a 24 storey residential tower with 231 apartment units in Business Bay.
  • Launched in 2007 was expected to be ended in 2009. Later it delayed to 2010 and in the mid of 2011 it was stalled. 
  • Resume again in October 2013 and scheduled to complete in the mid of 2015.
Damac Towers by Paramount a 58 story waterfront development in Business Bay.

  • Launched in 2006, the project was halt due to land dispute and property market crash. Re-launched again in March 2013 and opening lined up in the end of 2015. 
  • The project will consist of a 540-unit Paramount Hotel & Residences, and a co-branded service hotel residences Damac Maison-Paramount with1,400-units.
FalconCity of Wonders by FalconCity a project with total area of 40m sq ft, with life-size replicas of landmarks across the world like Great Pyramids, Taj Mahal and Eiffel Tower.
  • Commenced in 2005, the project was stopped due to issues on infrastructure, RTA approval and property crisis. More than 300 villas were added before pausing of the project. 
  • Project revived again in 2013 and 214 villa unit are set to complete in 2014. Developer is concentrating on publicity of the project.
Mixed-use project/Formula One Theme park in Dubailand by Union Properties.
  • Inaugurated in year 2005 with completion date in 2008. Project started in 2006 and construction work for the theme park was in the mid when the project was suspended due to lack of funds. 
  • Project revival took place in 2013 with addition of retail and residential units in the project.
Mohammad bin Rashid Gardens by Dubai Holding and Emaar Properties. The development will be the biggest park in the city to cater 250,000 residents.  
  • Initiated in 2008, the project will stretch on total area of 82sqkm. Later the project was put on hold due to property market crash. 
  • Project reheated again and master plan for the whole project of Mohammed bin Rashid City was announced in 2012.


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