An apartment tower in Dubai’s popular Jumeirah Beach Residence district that has been empty for the past eight years is finally coming to the market.
Shams 1, a tower of 317 apartments, was completed by the master developer Dubai Properties Group back in 2006 but has lain mostly empty throughout the boom and bust years of the Dubai property market.
“It was really a ghost tower which has been locked up for the last couple of years,” says Lucy Bush, the head of residential sales and leasing at Cluttons. “The entire tower was bought by a private investor as an investment and has changed hands a couple of times since then.”
Shams 1, at the western end of JBR, is one of a number of towers in the area bought by rich investors in an era when the Dubai property market was spiralling and flats were being bought and sold like stocks and shares. At the time a number of investors took the decision to retain the blocks in their entirety rather than taking the time and effort to sell them off piecemeal.
Then the global financial crisis hit Dubai and house prices and rents plummeted by as much as 60 per cent as demand for individual flats dried up almost overnight.
Many wealthy block owners chose to keep their towers empty rather than effectively reducing the value of their buildings by letting them out at cheaper rents or taking a hit on the price. At night residents in other buildings remarked on the dark blocks where no lights shone.
But with housing prices in Dubai now rising rapidly again, the time has come for the owners of Shams 1, and other similar apartment blocks, to start selling off individual flats.
This week Cluttons announced it is selling about 100 two-bedroom apartments in the block, having already sold another 100 one and three-bedroom flats to buyers from 27 countries including India, the UK, Syria and Iran.
“The fact that it is now being sold off as individual apartments and not in a bulk sale is really a sign of the times,” Mrs Bush adds.
The apartments have all been revamped with modern amenities and many offer spacious balconies. Some will also boast views of a new Ferris wheel – the world’s largest – being built on an island off the coast.
Prices start from Dh2.2 million for a two-bedroom apartment of nearly 1,400 square feet.
q&a living on the Dubai shoreline
What is JBR?
Jumeirah Beach Residence is a collection of 40 sandy coloured towers stretching along 1.7 kilometres of coast in Dubai Marina. It was built by the developer Dubai Properties Group in one phase between 2002 and 2007, making it the largest single phase residential development in the world.
What’s it like?
Luxury supercars cruise down the one-way seafront strip known as The Walk in front of the buildings. Crowds gather every evening either to admire the luxury motors or to visit the 305 shops and eateries. The apartments have all been revamped with modern amenities and many offer spacious balconies. Some will also boast views of a new Ferris wheel – the world’s largest – being built off the coast.
What’s new?
The developer Meraas is just opening a 1km beachfront mall and an outdoor cinema. The developer is behind the two-phase Bluewater Island project. The first phase will include the Dubai Eye, as well as retail, residential, hospitality and entertainment zones, and will be ready in two years. Phase two is expected to be completed 12 months later.
How much are rents?
Cluttons say that two-bedroom apartments in the area rent for about Dh150,000 a year.
What’s the downside?
The area has long been known for traffic congestion and parking can be tricky. On the upside, it is lively and busy. Many community events – such as craft markets – take place and residents like to sit outside the numerous cafes and restaurants.
lbarnard@thenational.ae
Follow us on Twitter @Ind_Insights
