At Dubai’s U-shaped twin tower, sales are inching close to the halfway mark at one of them. And that’s just the way the developer — RKM Durar Properties — wants it for the Dh700 million “J One”.
“We will only start pushing sales at Tower B closer to the completion in Q3-19,” said Mohammad Miqdadi, General Manager. “The decision has got nothing to do with the current weak demand in the market.
“We want to attract Tower B for actual end users, which is why the apartment sizes are larger than in Tower A and the finishes will also be more luxurious. Tower A is targeted at investors and we are well past the 40 per cent mark on sales there.
“In targeting investors with their off-plan launches, developers had been reducing the size of their units and ignoring end users. We wanted to take an in-between approach, have something for end users and investors alike.
“We are not fazed by the market conditions — the way we see it prices in Dubai now for luxury property are back to where they were in early 2013. In 2014, property values nearly doubled on the gains made in 2012-13. No market can take that kind of jump in such a short period.
“Prices now have removed all of those excesses and close to levels buyers can be comfortable with.”
Studios at Tower A are going for Dh850,000 and one-bedrooms in the range of Dh1.6 million. On a per square foot basis, prices are between Dh1,550-Dh1,900. There are 156 units within Tower A and 90 in Tower B.
“Our cost to build is Dh1,200 per square foot and that’s because of the design and the complexity of the construction,” the official added. “We didn’t deliberately go out to make a complicated design, the big plot in Business Bay and overlooking the water made it possible.
“The connecting area between the two towers is made up of six town houses and those have already been booked by our shareholders. They have a price tag upwards of Dh7.5 million. All the units in Tower A facing the Canal are gone and these are averaging Dh1,800 a square foot.”
When the J One was launched September last, it immediately drew interest for its sheer design and architectural differences from what is out there in the rest of the property landscape. QHC is the architect and lead consultant, while the project contractor is Ali & Sons Contracting.
According to market sources, the second-half of the year should see a “flood” of tower launches along the Canal. Nshama, which is building a 750-acre community, confirmed it has acquired a plot for a Canal-side, 50-storey tower. Azizi has plans for a twin-tower structure, what it says will be its flagship development.
“We are sticking to the Q3-19 completion for the J One, and don’t expect any major delay.” the official added. “On the cost side, we have put up 25 per cent as equity, which we used up mostly on the land and other related costs.
“As for the rest, we have already secured those from banks, including the Islamic financing arm of CBD. No developer can rely only on sales proceeds. It’s a fact of life.”
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