Jebel Ali Hills, Residential Plots by Meraas
September, 02, 2014
A few things to note: (1) the plot sizes are a minimum of 10,000 sq. ft. (2) Launch prices are at AED 120 - 130 psf (3) There are estimated to be a total of 2,000 plots though we have not been able to independently verify this. (4) 15 month payment plan. At these prices, Jebel Ali Hills is by far the cheapest area in Dubai to purchase free-hold plots. Other mid-end/high-end areas where one can buy freehold plots for construction are in Jumeirah Village Triangle & Circle - where prices are at AED 330 - 350 psf; The Villa project - AED 290 - 350 psf. Al Furjan - AED 200 - 230 psf. Meraas will allow 70% FAR - meaning on a 10,000 sq. ft. plot, you can build a 7,000 sq. ft. villa. Construction cost for a high-end villa can be estimated at AED 300 psf. Meaning a 7,000 sq. ft. six bedroom villa would have a total cost (including plot acquisition) would be about AED 3.4 million. It is hard to find even a ready 3 bedroom villa in a central area of Dubai at this price. Jebel Ali is an emerging hot-spot. The Expo 2020 site, the planned re-launch of Palm Jebel Ali and the ever increasing need to expand the city means that this area which is currently considered to not be a prime area will only grow in importance over the next few years.
The best thing about this project appears to be the fact that it is located next to the theme parks being developed by Meraas
Dubai theme parks firm forecasts $653m revenue in year 1
Feb 14, 2015
The operator of Dubai's planned mega theme park project has forecast that its first full year of operations will generate revenues of about AED2.4 billion ($653 million).
Dubai Parks and Resorts, which is building motiongate Dubai, Bollywood Parks Dubai, and LEGOLAND Dubai along with Riverpark - a grand entrance plaza - and Lapita, a family themed hotel will also provide 5,000 jobs across the sector.
The mega project, on which construction has started, is on track to launch in October 2016, said Raed Al Nuami, CEO, Dubai Parks and Resorts, a Meraas Holding company.
He said that by year end, over 50 percent of the resort wide roads and utilities infrastructure will be completed and 100 percent procurement of all theme park rides.
His comments came as the company announced a AED21m loss for 2014. Total assets increased to AED6.9bn, while no operating revenue were reported as the park is not scheduled to open until Q4 next year.
Al Nuami said partnerships were agreed last year with leading global leisure and entertainment brands to be part of the three theme parks while Parques Reunidos Servicios Centrales was appointed park operator for motiongate Dubai and Bollywood Parks Dubai.
Abdulla Al Habbai, chairman, said: “Dubai Parks and Resorts will capture the significant growth opportunity represented by creating the Middle East’s first premiere year-round leisure and entertainment destination.
"Strong demographic growth and favourable economic conditions within the UAE and the wider region will drive strong local demand for Dubai Parks and Resorts. In addition, Dubai’s location and world class tourist infrastructure will support the project’s growth strategy.”
Al Nuami added: “Our project is well underway and making good progress against our plans. We have signed agreements with some of the world’s leading leisure and entertainment brands which will enable us to bring world-class experiences to our visitors.
“We will have considerable opportunity to capture value through ticketing, hotels, retail and sophisticated destination management by our experienced team of leisure park management experts.
"Projected revenue in the first full year of operation is estimated at AED2.4 billion with over 5,000 jobs generated across the sector.
“Our 2014 financial results are in line with our plans. The first revenues are expected towards the end of 2016 following the opening of the parks to the public.”
Jebel Ali Hills as a project is attractive for the following reasons: (a) large plot sizes that range from 10 - 16,000 sq. ft. (b) located right behind the Dubai Parks by Merass which will be one of the main theme park areas of Dubai. (c) 70% FAR, buyers can build some of the largest villas in Dubai according to their own specifications. (d) Because of low purchase points for large plots, owners can potentially build villas with sizes ranging from 7 - 10,000 sq. ft. at less than half of what it would cost in buying in a mature community in Dubai.
As per Q3 2015, almost all the units are between 70 - 90% paid. There is some slight secondary market activity but it not significant. Prices today on the secondary market range from AED 145 - 160 per sq. ft (larger plot sizes sell for lower per sq. ft. prices, while the 10,000 sq. ft. plots are more in demand).
Transfers are now possible. Therefore a purchaser can now buy a plot (provided the plot has an Oqood and is at least 70% paid). No units are available directly from the developer and all transactions are from the secondary market.
As per the developer, construction on the plots will probably be allowed to commence from Q3 2016 onwards. However, this may be delayed.
I guess this project trumps any hope for the Arabian Canal to become real in the future ... since this project cuts through it directly ... But I am happy Jebel Ali is being developed! Hopefully Nakheel will move it and start with waterfront and Palm.
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