Special Report: Property Market in the Al Furjan Master Community

March 03 2015
By Lookup.Ae Sales

Al Furjan is a master-community developed by Nakheel which contains villas, townhouses, apartments and residential plots. The area is still in an emerging period and is classified by our team as a "Real Estate Hotspot" i.e. an area which has significant growth potential and an area that will continue to be revitalized due to location and other infrastructure developments.

In this report, we give a summary of each real estate component of this master-community, explore positives and negatives as well as current pricing trends.

Location

Al Furjan is accessible from Sheikh Zayed Road. The project is neighboring other developments such as Discovery Gardens and The Gardens communities. In terms of retail, the major destination is the Ibn Battuta Mall, small retail areas within Discovery Gardens and the recently opened Pavilion – a community center catering to both Discovery Gardens and Al Furjan residents.
Accessibility to Al Furjan will improve in the future with access points opening up onto Mohammad bin Zayed Road and Jebel Ali Road.

  Developer Status No. of Villas No. of Townhouses No. of Apartments No. of Plots
Nakheel Villas & Townhouses Phase 1 Nakheel Ready 278 543 - -
Nakheel Villas & Townhouses Phase 1 Nakheel Under-construction 146 223 - -
Dreamz Danube Under-construction - 171 - -
Residential Plots Nakheel Under-construction - - - 500
Masakin Al Furjan Nakheel Ready - - 335 -
Azizi Projects Azizi Under-construction - - 436 -
Avenue Residence 1 Al Jaziri Brothers Ready - - 100 -
Avenue Residence 2 Al Jaziri Brothers Under-construction - - 100 -

Villa & Townhouse Market

There are 278 ready 3, 5 and 6 bedroom villas and 543 ready 3 bedroom townhouses developed by Nakheel – also known as Al Furjan Phase 1.

In 2013, Nakheel launched Al Furjan Phase 2 which consists of 146 four bedroom villas and 223 three bedroom townhouses (also called Terrace Homes). This project is currently under-construction and delivery is expected in 2017.

In 2014, Danube launched their first real estate development consisting of 3 & 4 bedroom townhouses (171 in total). This project is currently under-construction and delivery is expected in 2017. 3 Bedroom Townhouses were sold for between AED 2.5 – 2.8 M (AED 980 – 1,050 psf). 4 Bedroom Townhouses were sold for between AED 3.1 – 3.45 M (AED 980 – 1,056 psf).

Ready Villa & Townhouses by Nakheel

In 2012, Al Furjan Phase 1 was delivered and has been one of the more actively traded villa & townhouses communities in Dubai. On the plus side, the project delivers on quality and has offered better value for money (per sq. ft.) than other more mature developments.

  BUA (sq. ft.) Price Range (AED) Rental Price Range (AED per annum)
3 Bedroom Townhouse Type B 3,049 2.65 - 2.85 M 160 - 165,000
3 Bedroom Townhouse Type A 2,683 2.8 - 2.9 M 155 - 160,000
3 Bedroom Villas 3,469 - 3,509 3.6 - 3.8 M 180 - 190,000
5 Bedroom Villas 4,539 - 4,561 4.2 - 4.8 M 215 - 220,000
6 Bedroom Villas 5,595 5.2 - 5.6 M 250 - 260,000

 

In early 2014, prices for villas in Al Furjan reached an average of AED 1,186 psf and townhouses AED 1,067 psf. Since then prices have declined by 12% for villas and 8.6% for townhouses.

Prices appear to be stabilizing. The decline is not exactly justified, and appear to be a combination of a number of factors including a softening market, the mortgage cap and the exit of investors – many of whom were actively involved in propelling the community’s growth by 25 – 30% between late 2012 and 2014.

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Apartment Market

There are currently 5 under-construction projects and two ready projects.

Masakin Al Furjan

Completed in 2012, Masakin Al Furjan consists of six low-rise blocks containing some 1 bedroom and mainly 2 & 3 bedroom apartments.

  Size range (sq. ft.) Price Range Price psf Rental Price (AED per annum)
2 Bed Apartments 1,400 1.35 - 1.45 M 965 - 1,035 100 - 110,000
3 Bed Apartments 1,745 - 2,000 1.65 - 1.75 M 900 - 970 125 - 135,000

 

Prices for 1 bedroom apartments and 2 Bedroom ground floor garden apartments are now displayed. 1 Bedroom apartments are particularly small (at around 500 sq. ft.) and are considered to be priced too high (generally owners demand prices ranging from AED 650 – 720,000).

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Azizi Projects

4 projects are currently under-construction by the Azizi group in Al Furjan – Liatris, Orchid, Feirouz and Yasamine. One of the more attractive features of this project is the payment plan. Buyers will pay 50% till completion and 50% upon handover. The apartments will be delivered fully furnished.

  Size range (sq. ft.) Price Range (AED) Price psf (AED)
1 Bed Apartments 939 - 1,082 920,000 - 1.02 M 935 - 980
2 Bed Apartments 1337 - 1,764 1.3 - 1.65 M 895 - 975
3 Bed Apartments 1,745 - 2,088 1.57 - 1.94 M 885 - 960

 

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Residential Plots

In October 2013, just days before the Expo 2020 announcement, Nakheel launched about 500 plots for sale in a large, undeveloped belt of Al Furjan. These G+1 plots have permission for construction of upto 75% of the plot area. Original prices ranged from AED 220 – 235 psf on the first launch, and AED 230 – 250 psf on the second launch.

The project appeared extremely attractive due to location and price. The drawbacks appeared to be the one year payment plan when it was clear early on that the land would remain in a raw state for longer than the payment period.

As of February 2015, the land does remain undeveloped. Prices, which had touched AED 260 – 280 psf, are now back at close to original price levels.

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Apartments available for sale or rent in Avenue Residence 1

1, 2 and 3 bedroom units in a brand new development.

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