Dubai developers ramp up sales as Amlak completes part of debut project

LONDON: Amlak Finance has completed the first phase of its new housing project in Dubai as developers ramp up off-plan sales.

The development in the Mirdiff suburb represents the first time Amlak has developed a fully owned property and comes as developers in the emirate release more offplan units despite a subdued market for finished properties.

The 135-million-dirham Amlak project consists of 54 villas and is scheduled for completion by the final quarter of this year.

“This project has been fully managed and developed by Amlak, and we believe it is wellsuited for the market,” said Arif Alharmi, managing director and chief executive of Almak Finance.

Dubai developer Deyaar also said this week it had awarded a contract to build more than 1,200 homes in the emirate.

Dubai developers continue to build thousands of new homes even as prices remain in the doldrums. Measures introduced by the government to cool house-price inflation via mortgage caps have funneled more homebuyers into the off-plan market and away from purchasing finished properties.

The booming off-plan sales market has had a “detrimental effect” on the pricing of completed units, said a report from Core Savills last week.

Still, some parts of the market are showing signs of strength. Two-thirds of Dubai apartments saw quarterly increases in prices, while villas registered the most declines during the second quarter, consultancy ValuStrat said.

It added that since reporting early indications of a recovery 15 months ago, prices for the following locations have appreciated: International City (13.2 percent), Downtown Dubai excluding Burj Khalifa (9.8 percent), Motor City (12.3 percent) and Discovery Gardens (10.1 percent).