Emaar Properties started two new projects and began expansion of its flagship shopping mall as the developer of the world's tallest tower leads companies seeking to benefit from a rebound in Dubai's property market.
Emaar is partnering with Meraas Holding to build the 11 million square-metre Dubai Hills Estate, a mixed-use project featuring an 18-hole golf course. It's also in the final stages of talks with Dubai Holding to develop the 6.5 million square-metre Dubai Creek Harbor project, according to a company statement.
"When Emaar focuses on Dubai, and it works on this kind of project at the higher end of the market, it has competitive advantage," Montasser Khelifi, a senior manager of global markets at Quantum Investment Bank in Dubai, said by phone yesterday. "This is positive" for Emaar, he said.
The projects are the latest in a series of announcements as Dubai recovers from one of the steepest property crashes after the 2008 global financial crisis. At the center of recent plans is Mohammed Bin Rashid City, a new district named after Dubai's ruler that will feature the world's largest shopping mall and gardens bigger than London's Hyde Park. Other projects include the world's largest Ferris wheel and five theme parks costing Dh10 billion.
Home prices in Dubai are climbing, with the average sale price of mid-range villas soaring 47 per cent in the year to May and mid-range apartment prices advancing 32 per cent, according to data compiled by Cluttons. Emaar, with the heaviest weighting on Dubai's benchmark index, has surged 49 per cent this year compared with a 45 per cent increase for the measure.
Emaar's projects come as companies such as Tecom Investments, a unit of Dubai Holding, and Nakheel, the builder of palm tree-shaped artificial islands off Dubai's coast, started new developments. Tecom said on Sunday it will invest Dh4bn in the first phase of Dubai Design District for fashion, design and luxury industries, while Nakheel this year announced plans to build hundreds of villas.
Emaar has also started work on a "massive" expansion of the Dubai Mall, the world's biggest by area. The expansion is part of efforts to attract 100 million visitors a year to the shopping facility compared with 65 million last year.
* Bloomberg News
