Gulf Construction Online

Real Estate

News in brief

01 February 2020

Arada posts 33pc growth in sales during 2019

UAE-based Arada, a top real estate developer, says that its sales rose by 33 per cent in 2019 compared to the previous year, boosted by significant investor interest in Sharjah’s largest mixed-use megaproject, Aljada.

The total number of units sold by Arada increased by 86 per cent against the previous year.

Sheikh Sultan bin Ahmed Al Qasimi, chairman of Arada, says: “2019 was a very strong year for Arada, despite generally adverse conditions in the UAE’s property sector, and our sales results reflect the strength of the Sharjah economy, and its real estate industry in particular.

“As well as handing over our first homes in Nasma Residences in May, we have also made considerable construction progress at Aljada and strengthened our executive team as we move towards our goal of becoming a major international developer.”

The total value of sales at Aljada, the Dh24-billion ($6.5 billion) project located in the heart of Sharjah, rose by 57 per cent in 2019, while the number of units sold increased by 105 per cent. The growth was spurred by the launch of Nest, the Gulf’s first student housing community in which individual buyers can invest directly, and The Boulevard, a three-tower complex ideally placed near the centre of Aljada. Arada is on track to hand over the first homes in Aljada in the second quarter of this year.

Located in Muwaileh, Aljada is a master-planned destination on the last major plot of undeveloped land in the heart of the city. It is an all-encompassing district that comprises residential and commercial offerings and considerable retail, leisure and entertainment options.

The total value of sales at Nasma Residences, which is now 95 per cent sold out, edged up by less than one per cent against the previous year. Based in the up-and-coming Al Tay neighbourhood, Nasma Residences, which features nearly a 1,000 villas and townhouses, saw a three per cent rise in the total number of units sold as compared to 2018. Arada is currently handing over homes in the second phase and anticipates completing all five phases of the project by mid-2020.

In total, Arada has now sold just over 5,400 homes across both projects.

Bahrain records 6,200 freehold villas in Q4

BAHRAIN’S residential sector recorded about 6,200 freehold villas on the market as of the fourth quarter (Q4) of 2019, marking a continued rise in villa supply, according to a new report by the global real estate services and investment firm CBRE.

This existing supply, targeting mid- to high-end buyers, is spread across a total of 40 projects that are viewed as being either waterfront, gated communities or non-gated villas.

An additional 10 projects are currently under development, which will see extra 5,150 units enter the market when completed. These new properties are expected before the end of 2025 and will boost stock levels by 83 per cent to 11,350 units, further strengthening the Kingdom’s residential real estate market for buyers and investors.

Currently, the most sought-after properties are gated community villas, which performed well in Q4 of 2019 with the sales rates increasing to BD690 ($1,818) per sq m. The sales price gap between waterfront and gated community villas has closed year-on-year; this is likely due to buyers being unprepared to pay a premium for property in waterfront locations as well as the availability of more affordable options entering the market during Q4 2019.

“With the local real-estate market continuing to display niche development opportunities in the residential sector, we are optimistic to witness a healthy environment for investments from both local, regional and international buyers in 2020,” said James Lynn, head of Strategic Advisory at CBRE Bahrain.

GFH Properties begins handover of 150 Villamar homes

GFH Properties, the real estate arm of GFH Financial Group, has announced the completion and opening of the residential tower at its iconic Villamar project primely located on Bahrain’s Manama waterfront.

Having secured all the certifications from various government agencies for completion, the process of handover of 150 one- to three-bedroom units has begun to local, regional and international buyers.

Villamar project is a mixed-use residential, retail, hospitality and leisure complex spread over 35,900 sq m at the heart of Bahrain Financial Harbour featuring a built-up area of more than 250,000 sq m.

Hisham Alrayes, CEO of GFH, says: “Completion and handover of the residential units at Villamar has been a major priority for the group and we’re delighted to have now reached this very important and exciting milestone for buyers at the development.

“This is one of the flagship projects on Bahrain’s skyline and we’ve done all we can to ensure the development of one of the most advanced and exclusive residential complexes.”

Shaikh Hamed Al Khalifa, CEO of GFH Properties, comments: “We’re extremely pleased to be announcing this significant development and major show of progress at the landmark Villamar project. We are now focused on completion of other key elements of the project.”