A town house project due to be launched this month will mark a paradigm shift in Dubai's real estate market as its developers prepare to offer three-bedroom villas for under Dh1 million.
The project will target middle-income professionals drawing monthly salaries between Dh10,000 and Dh20,000.
"Thoughtfully designed and sensibly priced", the project will feature three- and four-bedroom villas in the price range of Dh950,000 and Dh1.4m, a far cry from the multi-million dirham villas being sold, Premier Real Estate's Safi Qurashi told Emirates Business.
"We will offer low-cost villas because that is today's market. When you look at it, I believe that's what real estate prices should be," said Qurashi.
"The project will launch in what people call the 'New Dubai' in one of the freehold zones. We will be announcing it sometime this month."
Plummeting house prices which, analysts say, appear to have "bottomed out" are still not attractive to many bargain-hunting customers, since these prices are reductions on 2008's unprecedented peaks.
New projects, however, will have to align themselves to prevailing market conditions, if they are to remain competitive and sell.
Towing this line and seeking first mover advantage, Premier Real Estate will not rely on the "sell and build" formula and has designed the project to target middle- income professionals.
"Any developer today is relying on a certain amount of sales, but you cannot be reliant on making sales and then building. Developers should have enough funding in place or a good construction partner so that the development continues regardless of sales," said Qurashi.
"We have been blessed as we have some good private investors with us. The projects we are looking to do now are more sensible, and one of our partners is a construction firm," he said.
The project will be a quick construction and handed over anywhere between nine months and a year from now, Qurashi said.
Source: Emirates Business 24/7
More news from Premier Real Estate Press page