(MENAFN- Khaleej Times) For those of you who think the community of Arjan in Dubailand is a work in progress, think again. The precinct is seeing a lot of residents moving in to take advantage of competitive rents as well as developers handing over projects. One among them is Vincitore Real Estate Development which is helming two projects at Arjan - Vincitore Palacio and Vincitore Boulevard.
The two projects take up 500,000sqft and the developer has another 800,000sqft in Arjan to keep themselves busy for the next few years. Palacio, a single tower comprising 175 apartments and 5,000sqft of retail, is ready for handover whereas the six-tower Boulevard project with 216 apartments and 40,000sqft of retail facing Dubai Miracle Garden will be ready by April 2018.
The developer is also looking to acquire plots near the Dubai Water Canal, City Walk and Downtown Dubai.
"We are trying to fill the gap in the market for mid-segment branded real estate. The quality we offer is, however, on par with top-notch products. We have a lot of repeat customers in our second project," says Vijay Doshi, managing director at Vincitore Real Estate Development.
With four top schools in its vicinity - Safa School, Kings' School, Foremarke School and Nord Anglia International School - Arjan could be a good investment for families. While units released for sale in Palacio have been sold out, Vincitore has retained a few apartments to be released closer to handover.
Who is buying?
"We have several people currently renting in Arjan who are waiting for Palacio to be handed over so they can move in. We have clients from Emirates airline, oil and gas workers from Abu Dhabi, government employees, investors and overseas customers as well," says Doshi.
Boulevard features only studios and one-bed apartments and the developer believes the project will cater to tourists considering its proximity to Miracle Garden. Three buildings out of six have been sold out and Vinctore intends to retain two for leasing.
"We have international clients looking at short-term rentals. They can get eight per cent net rental three years from now. The holiday home concept will work very well at Boulevard since it overlooks Miracle Garden," maintains Doshi.
The developer claims properties at Palacio have seen good price appreciation. For instance, a studio was launched at Dh475,000 and has today appreciated to Dh570,000. The average sales price for a Palacio studio is Dh1,225 to Dh1,275 per sqft (ones facing the pool come at a premium) while a one-bedroom is priced from Dh1,150 to Dh1,200 per sqft.
Sanjay Chimnani, managing director, Raine & Horne, believes Arjan is a good fit for end-users looking for affordable homes. "It is priced around Dh850 to Dh1,000 per sqft. Current rental yields in Arjan are in the region of seven per cent," he informs.
However, he warns that anyone moving into the area will see construction for some time to come. "There are a few construction sites in the area and like much of Dubailand, this is surely a site which is a work in progress," Chimnani adds.
Commenting on infrastructure at Arjan, Doshi adds: "The road network is done, power sub-station is complete, 90 per cent of street lights are functional and the sewage system is working. This is the right time for an investor or end-user to be a part of the Arjan success story. Road connectivity is also good to Mohammed bin Zayed Road and Umm Suqeim Road. We have a My City centre Barsha, play centres, restaurants, clinics and spas."
The top executive advises developers to avoid bulk deals and instead offer post-handover payment plans to genuine end-users. He also warns end-users to do due diligence on a property's liveable area before signing the dotted line. "Developers are reducing the size of the liveable area to maximise profits and offer units at a particular price," warns Doshi.
Vincitore has funded both its projects with its own equity and help from non-banking institutions. "Before we commence construction, we arrange for our funds till handover. We don't depend on sales for construction finance," he clarifies.
Undeterred by the cyclical nature of Dubai real estate, Doshi adds: "Every market has ups and downs. Dubai, London and Mumbai, for instance, are cities where the price correction in real estate will not persist for long. The government only wants serious players to be in the market. This is healthy for investors and end-users."
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Deepthi Nair I cover all things related to real estate in the UAE. Working as a print journalist in Dubai since 2008, I have reported on all the flashy new projects in town. Dubai's passion for setting new records continues to amaze me. I love to do stories that strike a chord with the average expatriate in the UAE. If you have any news related to your community or rents, you know who to get in touch with at Khaleej Times. When I am not working, I travel, catch up with friends, mall trawl, catch up on movies, explore new places in town or just unwind in a spa. Originally from India, I have been a journalist for more than 11 years. Language has been my forte right from school. That's me in a nutshell
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