Dubai: Down ‘south’ is where Dubai’s real estate development is starting to see some real activity. And the ripple effect is being felt by property developments and communities falling within its radius of influence.
If the pace of build-up continues in the newer locations, it will help unclog the heavy pressure on Dubai’s established residential neighbourhoods and — at some point — even help ease the high rentals.
With newly named ‘Dubai South’ as the epicentre — the location formerly known as Dubai World Central — new projects and advanced infrastructure works are starting to benefit locations further away such as IMPZ (International Media Production Zone), the latest expansions at Dubai Investments Park, Jumeirah Village and Sports City.
The sprawling Dubai Industrial City is another major beneficiary, not just as a magnet for manufacturing and logistics assets but even residential offerings. (A self-contained city-within-a-city, Dubai South plays host to Al Maktoum International Airport and all of the attractions that will make up the Expo 2020 mega-event.)
“In locations such as IMPZ and Jumeirah Village, plot values are holding up quite well and even recording gains with each new top up in features in the area,” said Raj Sahni, founder of RSG International, which has just completed its first project at IMPZ. “Plot values are comfortably upwards of Dh100 a square foot. At these prices and available plot sizes, there’s a lot a sub-developer can do.
“And there are other factors too that will aid bring in new buyer interest — such as the opening of the new Majid Al Futtaim Group owned shopping centre (Me’aisem) at IMPZ.”
Meanwhile, land prices in Dubai Industrial City and areas around it currently range between Dh125-Dh150 a square foot of built-up area, according to Sailesh Israni of Sun and Sand Developers.
“Most of these areas are planned as integrated townships — not only is land available for industrial purposes but also for residential,” said Israni. “So people associated with industry can stay close by. “As long as the infrastructure is ready, people do not mind relocating to such areas.
“It will be at the newer clusters that Dubai’s need for affordable homes will be met. Land values at the more established communities are at levels that there’s no way a developer will be able price anything within an affordable price band.
“Private developers are willing to take Dubai’s real estate development to the city’s outer limits. And potential property buyers — end-users principally — will only be too willing to join them.”
Clearly, in setting the tone for Dubai’s next stage of property evolution, Dubai South’s impact will not be confined to a change in name.