Sharjah-based property developer Arada has purchased the last beachfront plot on the crescent of The Palm Jumeirah for Dh240 million ($65m) and plans to expand into the Dubai property market.
The company plans to build a mixed-use project on the 20,500-square-metre plot bought from The Palm Jumeirah’s master developer Nakheel, the company said in a statement on Monday. This is Arada’s first project outside Sharjah.
Arada is a joint venture between KBW Investments – a company controlled by Saudi Arabia’s Prince Khaled bin Alwaleed – and Sharjah's Basma Group.
“The time is right for us to invest in Dubai, given the strong performance of the market during the course of 2021 and the impressive steps the government has taken to increase interest in this sector,” said Ahmed Alkhoshaibi, group chief executive of Arada.
“We are also confident that further new projects in Dubai will be confirmed during the course of 2022.”
The UAE’s property market is bouncing back from a slowdown induced by the slump in oil prices in 2014 and, more broadly, the impact of the coronavirus pandemic.
In addition to demand and changing market dynamics as a result of the pandemic, the rebound is also being helped by government initiatives such as the expansion of the 10-year golden visa programme.
The value of property deals in Dubai more than doubled last year and broke a 12-year record in terms of sales transactions, buoyed by demand in the secondary real estate market, according to listings portal Property Finder.
The emirate registered 61,241 sales transactions worth Dh151.07 billion ($41.13bn) last year, compared with Dh71.87bn worth of transactions it closed in 2020, making 2021 the best year for total transactions since 2013 and the highest in value since 2009, Property Finder said. The total value of sales in 2009 was Dh155.6bn.
Design work on Arada’s mixed-use project on Palm Jumeirah, which will contain residential, leisure and food and beverage components, has begun and sales are expected to begin in the third quarter of this year, the company said.
Located on The Palm’s East Crescent, the plot is close to the Waldorf Astoria Dubai Palm Jumeirah and Sofitel Dubai The Palm.
“This is a landmark moment for Arada, allowing us to diversify into one of the world’s most respected and competitive real estate markets,” vice chairman Prince Khaled said.
Arada’s projects include Aljada, Sharjah’s largest mixed-use project where 5,000 units are currently under construction, and Masaar, a community with 4,000 villas and town houses.
The developer has so far completed 2,200 homes, including five of the six phases at its first project, Nasma Residences.
The company aimed to achieve between Dh2.3bn and Dh2.4bn worth of property sales by the end of last year. Its target for 2022 is Dh3bn.
Arada secured Dh250m from Dubai Islamic Bank to speed up the construction of its Aljada project in Sharjah last year.
The company also aims to expand to Abu Dhabi in 2022 and is in discussions to buy land to launch projects, its chief executive told The National last year.
Arada previously partnered with Nakheel over the launch of its gym and wellness brand, Wellfit, in November.
Dubai’s largest indoor, multi-sports centre Wellfit opened at Circle Mall, Nakheel’s recently completed retail and entertainment destination located in Jumeirah Village Circle.