Dubai’s Nakheel Says Not Seen Drop In Property Prices

Dubai developer Nakheel has not recorded a drop in property prices in any of its projects, Chairman Ali Rashid Lootah said on Wednesday.

“We did see a slowdown in sales during the second half of last year, but we haven’t seen a drop in prices. We are still selling at the old prices,” Lootah told reporters.

“Also, all our sales are cash- transactions, so we are mortgage-free. We have healthy customers, who buy with their own money.”

He also confirmed that most of the investors were end-users. “The market is now very different from the old days,” he added.

Property prices in Dubai saw a huge spike in 2012 and 2013, following the crash in 2009, but have begun levelling off in the last few months, say experts.

According to the Dubai Land Department, the number of residential transactions fell 30 per cent last year, with values down 14 per cent.

“Average prices and rentals in the residential sector appear to have stabilised over recent months, with some locations registering marginal declines,” property consultant JLL said in a report this week.

Nakheel, which posted a 43 per cent rise in net profit for 2014, has been focusing heavily on boosting its retail, leasing and hospitality businesses.

Revenue from these segments is expected to grow from Dhs1.3 billion in end-2014 to Dhs7.5 billion by end-2017, when most of the projects are expected to be completed, Lootah said.

The company is looking to grow its residential leasing portfolio from 17,000 units in end-2014 to 30,000 units by 2017, while its leasable retail space area during the same period is estimated to grow from 2.5 million sqft to 10 million sqft.

Its retail developments include Dragon Mart, Ibn Battuta Mall, Nakheel Mall and Hotel, The Pointe at Palm Jumeirah, Deira Islands Mall, Jumeirah Village Triangle Mall and a number of neighbourhood malls.

With focus on completing these developments, Lootah confirmed that there are no plans to launch new residential projects for sale at present.

“We will monitor the market, and if required, we can launch new projects since we have the land and infrastructure,” he added.