Dubai-based Lootah Real Estate Development (LRED) is confidently riding out a lull in the property market, having released its unique portfolio of high-end villa and apartment projects — Shamal Terraces and Shamal Residences — in Jumeirah Village Circle (JVC). LRED is also expanding Ewan Residences in Dubai Investments Park, a pioneering mixed-use gated community that was launched in 2006, making it a front runner in the market at that time.
Work has also started for the 135-apartment Waves building also in JVC, which will be ready for delivery in the second half of next year.
In an interview with PW, Saleh Abdulla Lootah, executive director of LRED, speaks about the resilience of the Dubai real estate market and the need for novel concepts.
Is Dubai the main focus of your projects?
Our reputation in the UAE and the region goes back several decades, especially in real estate, construction, logistics, community and retail development, foodstuff and education. We want to keep that corporate tradition and integrity high. While our real estate projects are focused on Dubai and we have already delivered more than 1,000 units, the Lootah Group has active businesses in Saudi Arabia and the other Gulf countries. Dubai’s real estate sector has gone through boom and bust phases. But now the market is more mature, having cleaned up the previous mess and the consumer is more knowledgeable and sophisticated.
So what does the consumer want?
The consumer is looking for developers who can be trusted, have a track record and have distinct projects. This is what we want to achieve. If you cannot create something unique, you will not be able to survive. Before we launch a project, there are months of planning that go into it, followed by getting the mandatory permissions. And although we have a strong relationship with banks, we try to use our own financial resources. We don’t want to be too heavily dependent on bank finance.
Does the overall global situation affect you?
We see it as an opportunity. You can get some good deals in terms of land pricing. Dubai has always been a unique destination. It is difficult to imitate the kind of infrastructure, tourism facilities and the ecosystems in place here. As a mega city, we will continue to be attractive and have an advantage. There is no doubt parts of the global economy have slowed down, but we can wait. As long as the market picks up, Dubai will be resilient. I think the market is healthy. Being steady is healthy for Dubai.
What trends do you see?
People look for a nice lifestyle when investing in property. The best amenities have to be provided and the location has to be unique.
We look at the product design and match it to the expectations of our end users. We aim for perfection and we design keeping in mind the end user. We have in-house designers and a panel of experts and consultants who have a track record and have worked on similar projects. We use their expertise whenever needed.
Have you limited the offering of Shamal Residences to studios and lofts only?
We believe this kind of product was missing in the market. These are very high-end studios and one bedroom apartments from 500 sq ft at Dh1,700 per square foot. These are priced on the higher side and suited for singles or the newly married who are looking for quality homes. We have successfully closed the sale of the first phase of Shamal Residences. We had 259 units (204 studio and 55 loft apartments) ranging from 500 sq ft to 850 sq ft in the two buildings of the Residences, and all have been sold out.
What about your other offering, the Shamal Terraces?
The two phases of Shamal Terraces have 28 villas. And the third phase comprises 20 villas of three to four bedrooms. Only a few ready-to-move-in villas are available for buyers on a first-come-first-served basis. The majority of buyers are end users, mostly European and some UAE nationals, while the investors are from Pakistan and India.
Tell us about the payment plans
The typical payment plan is 10 per cent upon booking, 10 per cent after three months, 10 per cent after the next three months, 20 per cent upon 50 per cent completion of construction, and 50 per cent upon completion of construction. Up to 80 per cent financing is available for UAE nationals.
Any update about Ewan Residences in Dubai Investments Park?
Ten years back, we created the highly successful Ewan gated community. The Ewan Residences have 79 buildings with up to 12 apartments in each block. The apartment blocks have been designed in a unique manner to make them affordable to small, medium and large companies in Dubai. It is a secure, gated community with beautifully landscaped gardens, a state-of-the-art recreation centre, swimming pools, a jogging track and community facilities that include play areas for children throughout the complex.
What is your latest project?
LRED’s next project is The Waves in Jumeirah Village Circle. It is a classically designed building with 135 apartments. The groundbreaking has been done after initial approvals from the relevant authorities. The project will be ready for delivery in the second half of next year.
