Binghatti Developers said it launched a Dh200 million ($54.5m) residential project in Jumeirah Village Circle in Dubai, betting on the emirate's economic and legal incentives boosting the real estate sector.
The Binghatti Mirage is scheduled for handover starting from March 2022, the company said in a statement on Saturday.
"It reflects the company's continued expansionary approach in the real estate sector in the emirate of Dubai, as well as great confidence in the sector’s recovery this year," Muhammad Binghatti, chief executive of the company, said.
The Covid-19 pandemic has had an impact on the real estate market, with subdued demand and oversupply weighing on sales and rental prices. As a result, landlords have had to contend with lower rents and weaker yields. However, some communities in the UAE have managed to buck the trend.
The Binghatti Mirage is the company’s third project to be offered for sale in Jumeirah Village Circle, taking the number of apartments offered by the company in the area to 500. The developer's latest offering will contain 160 apartments spread over a project area of 300,000 square feet.
"We are betting on the future of real estate investments in Dubai amidst economic and legislative incentives, as well as government initiatives that strongly support the sector, which include granting citizenship to foreigners, and the ... Dubai Expo 2020, in addition to the Dubai Industrial Strategy for the next 10 years," Mr Binghatti said.
The chief executive also said the company had "large and ambitious" expansion plans for Dubai's real estate market, without elaborating.
A one bedroom apartment in the development with an area of 722 square feet will be priced at Dh485,000 after a 30 per cent discount in advance, while a two bedroom apartment with an area of 856 square feet costs Dh689,000, the company said.
Average apartment rents in Jumeirah Village Circle declined 16.1 per cent last year and villa rents in the community fell 3.1 per cent, in line with levels experienced across Dubai, according to Cavendish Maxwell's fourth quarter UAE property market report.
"With an abundance of options now available at more affordable rates, many tenants have chosen to move into bigger spaces or better communities, or both," the report said.
