Oia Residences in Dubai's Motor City will be brought to life by the Chinese State Constructing Engineering Corporation (CSCEC), Union Properties’ chief said at its launch.
AED 450 million Oia Residences project in Motor City will include 269 apartments and will be the second residential development recently launched in the area, while the third project The Link is also on the way. This latter complex will include a hotel and shopping components besides being in close proximity to a series of retail units The Ribbon currently under construction and said to be handed over within two weeks.
“We’re finding it to be a very good time to build because contractor prices are astonishingly good as far as developers are concerned," Union Properties’ chairman, Khalid bin Kalban, said at a ceremony to mark the start of construction.
“We are riding this cycle and I think the market will rebound hopefully within one year’s time. I think by the end of 2017 it looks positive," he added.
Danube Properties also keeps the pace and, in addition to the recently launched Glamz I, intends to launch the second and third stages of the project in Dubai’s Al Furjan district. This complex worth AED 300 million will be built next to existing Starz by Danube. Such secondary locations as the Motor City and Al Furjan are currently in great demand between affordable property buyers. Thus, Danube’s expectations to sell all of 418 units in Glamz I before Ramadan (i.e. in a month) seem quite realistic.
Prices for apartments in the complexes declared as being the most affordable attract customers, who are sometimes buying out the whole floors in the building in order to lease the premises and units and get up to 10-11% of yields, which is considered of the highest Dubai’s rates, even for elite areas.
But, apart from new opportunities, developers don’t want the market to get overheated again, being overstuffed with new offerings. “However good we are selling, I don’t want to be greedy. I don’t want to be in a situation where I launch three or four projects at a time and then I get stuck. Then I have to leverage with the banks. I would rather be happy making a small profit, go one step at a time and move forward," Danube’s chairman, Rizwan Sajan said during the launch.