Developer optimistic about prospects of city’s property market.
By Amna Ehtesham-Khaishgi
DUBAI: What could be the possible link between India’s love for movies and a luxury residential tower in Dubai? Apparently it is a significant one, if a property developer here is to be believed.
Encouraged by the “sellout” response to the invite-only first phase launch of its DAMAC Towers by Paramount, DAMAC Properties is now targeting the country for its $1 billion hotel and serviced residences project in the city’s famed square overlooking the world’s tallest tower, Burj Khalifa. In the words of DAMAC’s managing director, Ziad El Chaar, the project will bring Hollywood glamour and refined style to a luxury project.
But why are Indians the target? “Obviously there is a huge love of film in India. Over the past one hundred years, Paramount brought us iconic movies such as Breakfast at Tiffany’s, Titanic, Forest Gump and The Godfather trilogy. These movies resonated around the world and buyers in India are clearly excited by a world first project to incorporate the ambience from these movies in a luxury living concept,” says El Chaar. If you are not totally convinced, here’s more.
According to El Chaar, the majority of Indian buyers in the first phase of the project were from Mumbai and New Delhi and at current price levels, the property sector in Dubai is far more attractive, tax-free investment, than high-end projects in these two Indian cities. “Also, Dubai is only three hour flight from Mumbai and Delhi, which is a great value proposition for Indian homebuyers in Dubai,” he says.
Paramount Hotels and Resorts is the official licensee of Hollywood’s Paramount Studios and the partnership with DAMAC is the first time that Paramount has entered the hotel and real estate industry. DAMAC claims that the project’s first phase was sold out in a few hours, the most successful launch in the Dubai property market for many years.
But there is also an overriding reason behind the pitch for Indian investors. “Our Indian buyers make up a good percentage of our overall market, which testifies that they drive significant demand for luxury serviced apartments in Dubai,” El Chaari says. Buoyed by the fact that majority of buyers in its first launch were from Mumbai and Delhi, the company has chosen to hold road shows in Mumbai and Delhi on April 5.
The bigger questions lurking though are those related to Dubai’s property market, which is only beginning to recover, and DAMAC’s problems with delivery delays in the previous boom and bust cycle. The company claims this project is already 10 percent complete. “The project will soon start rising out of the ground, and over the next 12 months will rise quickly,” says the El Chaari.
The company has secured approval from the local Real Estate Regulatory Authority (RERA) and Dubai Tourism and Commerce Marketing (DTCM). It has also fulfilled another local regulatory requirement that of depositing all funds received from the initial unit sales into an Escrow account, specifically tied to the project. Once complete, the project will provide a Paramount Hotel & Residences and Paramount co-branded serviced hotel residences.
El Chaari sounds equally optimistic on the prospects of Dubai’s property market. According to him, the market is showing strong signs of recovery – and grew by as much as 20 percent last year. “As confidence in the market strengthens, more liquidity will flow and ensure that projects are developed, completed and handed over in good time. It is the consistent flow of investment which ensures a solid, stable growth pattern within the market,” he says.
Notwithstanding El Chaar’s optimism, if DAMAC’s quest to get Indian investors onboard materializes, it would mean a coming together of East and West in a truly Middle Eastern city called Dubai. (Global India Newswire)