$114mn worth of sales in Palm Jumeirah and Jumeirah Village Circle indicative of increasing investor confidence
Nakheel, the Dubai government backed property developer, announced on Monday that it had closed land sales worth more than $114mn in its Palm Jumeirah and Jumeirah Village Circle developments.
Ali Rashid Lootah, chairman of Nakheel, claimed that these sales were evidence of the return of Dubai’s real estate market and an increase in confidence amongst investors.
“Real estate in Dubai is on the move again. After the recent success of our Jumeirah Park villa launch, Nakheel has now seen investors clamouring for the newly-released plots in Jumeirah Village Circle. This reveals a very clear message: confidence in Nakheel and Dubai is back,” Lootah said.
On the Palm, the developer has sold a 6,689m2 residential villa plot for $28.3mn, and a 14,400m2 residential plot on the trunk for $54.9mn.
Nakheel has also sold 122 residential villa plots in Jumeirah Village Circle, the 860 hectare master development south of Al Khail Road, with transactions there exceeding $30.7mn.
In October of this month, Nakheel said that its net profit had nearly doubled to $299m for the first nine months of the year, on the back of fresh sales and retail and leasing activities.
“These robust results are a reflection of the buoyant market conditions in Dubai and the ability of Nakheel to leverage the assets it has developed,” the company said.
“Prices in the flagship development of Palm Jumeirah have crossed pre-crisis levels, a definite sign of customer confidence and trust returning to the market. Further, the delivery of completed units and the near 100% occupancy of the retail and leasing asset portfolio have augmented the profitability of the business for the current period.”
Since the property developer has undergone restructuring (up to the period September 30 2012), it has delivered approximately 4,000 units to customers.
These units have primarily been delivered in the Palm Jumeirah, Jumeirah Village, International City, Al Furjan and Jumeirah Heights residential developments.