Indian oil firm picks MBR City for first Dubai property project
Gemini Property Developers launches in Dubai
By Parag Deulgaonkar
Published Wednesday, November 11, 2015
Gemini Property Developers, the real estate arm of India’s Gemini Energy Group, is all set to launch its first project – a luxury residential tower in Mohammed Bin Rashid (MBR) City – as it works its way to increase its land bank in the UAE.
“Our first project will be a 134-unit luxury apartment tower in MBR City, which we consider as the next ‘prestigious address in Dubai,” Managing Director Sudhakar R Rao told ‘Emirates 24|7’.
“All our future projects will be predominantly in the residential segment and we will explore all projects that cater to different budgets and price points. Having said that, we are not ruling out commercial or mixed use projects as we want to have a range of projects catering to all market segments.”
Launched in November 2012, MBR City, a mega multi-billion-dollar development, includes a shopping mall, park equipped to receive 35 million visitors, a leisure and entertainment set up in collaboration with Universal Studios, more than 100 hotel facilities and art galleries.
Build now, sell later
Giving his view on the local property market, Rao said that Dubai’s real estate sector has attracted a growing number of investors and expatriates over the past few years, thus increasing demand for housing, especially affordable housing.
“Moreover, Dubai is witnessing greater capital value appreciation and significantly higher rental returns than most countries. In a way, it has set the benchmark for property development in the rest of the Middle East after withstanding the recession. We see current correction and consolidation, which is a healthy one and mutually beneficial in the market.”
The developer expects property prices to dip marginally, but not substantially.
“We plan to build during this period so that we can start selling when the market bounces back,” Rao revealed.
Its first MBR City project is being self-financed so far, but bank finance is an option as and when the project progresses.
In August 2015, Lookup.ae, a local real estate portal, said a total of 120 new projects have been launched in Dubai in the past 24 months, with investors being drawn to the off-plan market due to attractive prices and payment plans.
Earlier this year, Standard & Poor’s said Dubai’s residential property prices were likely to fall 10 to 20 per cent in 2015 because of subdued demand, lower economic activity and downbeat investor sentiment.
Moody’s Investors Service has, however, said that the slowdown in the market is “positive in the long run” and the government spending on infrastructure and encouraging more foreign investments in various sectors will support the real estate market over the next five years.