2,024 Mid-Tier Residential Locations on Lease
Properties in Dubai are showing signs of recovering from the downturn in values that started in 2009 due to the bursting of the property bubble.
Rental rates in Dubai are once again recovering amid growing optimism for mid-tier residential locations.
However, there are still many properties without tenants and there is still a huge gap between demand and supply.
That gap is set to increase even further when property developer, Ritaj, opens up leasing on as many as 2,024 apartment units in 11 buildings.
The new development opening in Dubai Investments Park is tailored to attract interest from professionals and other prospective leasers who are looking for new premises to move into.
With rents of AED 23,000 a year and a number of sweeteners on the deal, the new properties are attracting great interest and analysts are worrying that the release of so many properties at once will further increase the gap between demand and supply putting pressure on older properties.
Ritaj development an arm of the Dubai Investments Real Estate is targeting to have 80% of the new properties on lease by the end of 3-4 months a significantly lower time frame than the regular six months most other developments target.
The developer is also confident of achieving the target as it cites trends in the market showing an increased activity by people looking to move into new properties.
Mohanad Alwadiya, managing director of Harbor Real Estate, says that a green gated community with such low prices are a great incentive for leasers who are looking for value and this new development will put great pressure on other property developments.
“Customers in this property segment are very price sensitive and they will surely do their homework when it comes to obtaining real value for their money. The introduction of 2,024 new units within a green gated community will have a strong impact on the older and less equipped communities.”
The new development will feature a huge mall with a supermarket for residents.
The 2,024 new apartments will feature 1,343 studio apartments, 447 one-bedroom flats, 194 two-bedroom and 40 three-bedroom units.
In a press release Obaid Al Salami, general manager of Dubai Investments Real Estate said.
“The main and long-term objective of the project relies on providing small families with a lifestyle beyond their expectations. I think Ritaj has achieved this goal and provided solutions based on customer insights and interests.”
Other property developers will face problems in matching the benefits provided by the new development and Ritaj expects a large number of people to move for the mid-market property.
With potential leasers looking to move into their new homes before the start of the summer break, the timing of this development is brilliant and Ritaj will likely meet its goals of 80% completed leases.
