AL HAMRA EYES MORE PROJECTS IN RAK
Real estate developer plans to boost sector with more projects
dubai — Ras Al Khaimah has established a well-deserved reputation as a leading tourism destination in the UAE, and Al Hamra Real Estate will play an important role in boosting the hospitality sector in the emirate by developing a new hotel at Al Hamra Village, a top official says.
Barry Ebrahimy, head of commercial at Al Hamra Real Estate Development, said the company is also in the final stages of planning an international school and that other “exciting” projects are to be announced shortly.
“We are excited at the prospect of having an international school at Al Hamra Village, which will help attract more families to the emirate. We are also exploring a number of other large-scale projects, including the redevelopment of Al Hamra Convention Centre,” Ebrahimy told Khaleej Times in an interview.
He said neighbouring projects like Marjan Island are part of the bigger vision of promoting Ras Al Khaimah to the world, and that together with Al Hamra Village it will boast a number of benefits to investors looking into one of the fastest-growing leisure and tourism industries in the world.
“Al Hamra Real Estate will play an important role in developing new hotel projects on Marjan Island. This first man-made island in RAK boasts 2.7 million sqft of oceanfront land that is ready to accommodate 30 new hotels. These hotels promise to increase the number of rooms in the emirate to around 15,000 by 2022,” Ebrahimy added.
Elaborating, he said investors in Marjan Island can enjoy zero-per cent income tax, 100 per cent foreign ownership, no foreign exchange controls, capital repatriation, ready infrastructure and utilities, as well as residency facilities.
Major initiatives
Ebrahimy said the Ras Al Khaimah government — and more specifically the RAK Tourism Development Authority — have played an integral role in attracting investors to promote tourism and Arabian hospitality in the emirate.
“We believe RAK is the fastestgrowing emirate in the UAE as tourism grew by 72 per cent last year. The government has announced agreements that will see Qatar Airways flying more than 400,000 passengers a year directly to the RAK from October this year. Furthermore, an agreement with Royal Brunei Airlines is another significant step towards adding to the already vibrant tourism market.”
Moreover, he said the Etihad Rail passenger service planned for 2018 is another exciting development that will connect the Northern Emirates and the rest of the UAE.
“Rail is a big game-changer economically, and together with the fact that tourism and the growth of RAK Free Zone have enabled the emirate to grow at a fast pace, we fully expect the number of people choosing to visit and live at Al Hamra Village to increase. This is not new,” he said.
“Demand for our properties has long outpaced the speed with which we have been able to build them. In fact, less than 30 homes are currently available on the market out of 2,500, and we have 87 per cent occupancy. This is one of the main reasons behind success of our Falcon Island and Bayti projects. Even these are selling out at a record pace, offplan. It is also why we are planning new hospitality and residential projects to cope with the demand.”
Progress on projects
Ebrahimy said the Dh1 billion Falcon Island, the Bayti development, and expansion of Manar Mall are well underway and upon completion these projects will further boost the Al Hamra portfolio in the real estate and retail segments.
“Falcon Island is on track for completion in December 2017 as the infrastructure and marine works contract was issued in March. The contract includes dredging of the spectacular Venicelike central canal that will split the private island in two and become an iconic feature of the project.”
“A separate tender for a first-ofits-kind hybrid district cooling plant has also been issued as part of Falcon Island and we may make an announcement to elaborate on this system in the future.” About the Dh250 million Bayti homes, he said the project is near completion ahead of schedule and 80 units will be delivered to owners one month ahead of schedule in November this year.
“We are nearing completion of the first of our luxury Bayti properties. The development comprises a total of 162 three and four-bedroom townhomes and will include a district cooling facility.”
Regarding the Dh230 million Manar Mall expansion, he said work is underway on the project that will double the mall’s leasable area from 30,000 to 60,000 sqft upon completion by the third quarter of 2016.
The project generated huge interest among international brands who are willing to secure a place in the new retail space to join leading names like Carrefour, Marks & Spencer, H&M and Paris Gallery, among others.
“As the first and most popular mall in Ras Al Khaimah, this expansion will enable Manar Mall to continue redefining the retail landscape in the northern emirates, setting new benchmarks and acting as an important retail hub and social centre for the 100,000 people that live within a 30-minute drive from the mall,” he said.
To a question about the first-half performance of Al Hamra Real Estate Development, he said it was good from a business point of view as the company recorded strong numbers in terms of sales.
“Last year, we handled Dh500 million worth of transactions on account of the high return on investment that are on offer through Al Hamra Village properties.”
He said house prices are climbing, but the company has managed to ensure the affordability of its homes as rental prices have risen at a faster rate than increases in the cost of purchasing homes at Al Hamra Village, offering great returns for investors.
“The market price for villas increased by 22 per cent last year, and apartment prices were also up 16 per cent. We expect the growth be even stronger in the second half of the year and beyond,” Ebrahimy concluded.
Al Hamra Real Estate will play an important role in developing new hotel projects on Marjan Island
Barry Ebrahimy, Head of commercial, Al Hamra Real Estate Development