DUBAI // The fortunes of a community built on Dubai’s outskirts has been revived after the emirate’s Expo 2020 victory pushed up rents, forcing people to look beyond central districts and glimpse value in the Dubailand area that many had previously written off.
Although still a work in progress, the Remraam development of 56 low-rise buildings is the first to feel the impact of the forthcoming World Fair, with its proximity to the new airport at Dubai World Central, the Jebel Ali industrial area and lower rental prices.
Until three years ago, many buyers planned to cancel their investments due to delayed delivery of a community much scaled down from the original plan of 200 buildings.
“I’ve noticed more ads on Dubizzle and many Abu Dhabi plate numbers on cars parked in the community,” said Tariq Ziad, a Jordanian electrical engineer who lives in Deira and will soon take possession of his Dh1.2 million Remraam home.
“This is good for the area. Actually, everything revived after the Expo victory. Six months ago it was still deserted.”
Tenants are being attracted by swimming pools, tennis and basketball courts and play areas for children spread over the community located off Emirates Road between Jebel Ali Free Zone and Al Maktoum International Airport.
Developer Dubai Properties (DP) said it had completed and handed over 56 buildings, and infrastructure was in place including sewage facilities, water, electricity and road networks.
However, several investors were still unhappy and have complained about the quality of construction.
Alen, a business consultant, paid Dh1.3 million for a two-bedroom apartment in 2008. He was among buyers who had deferred possession two years ago because facilities were incomplete.
“They may have put in nice pools, tennis and basketball courts to make it habitable, but, honestly speaking, it’s still in middle of desert,” he said.
“Rents are low for a reason, people are still making a compromise. It’s not a first choice because there is no school or medical facility nearby. It’s like living at the edge of the world.”
A DP spokesman said a retail community centre was being built that would include a Geant Easy supermarket, retail stores, a pharmacy and laundry service.
“We will continue to develop the Remraam community as the market in Dubai requires,” the spokesman said.
“Remraam is already home to many families and we have received positive feedback from the majority of our residents who feel it is a great place to live.”
Potential homeowners envisioned a thriving green community by 2011 close to Dubailand’s proposed amusement parks, malls and golf course. However, most Dubailand projects were cancelled or placed on hold in 2009.
The global financial crisis sent the emirate’s housing market reeling with 217 projects cancelled in Dubai between 2009 and 2011, according to Land Department data.
Worried investors had mortgages of between Dh5,000 to Dh8,000 a month on incomplete or curtailed projects.
But now property advisory firms are backing Remraam.
“With increase in rents, people feel it’s easier to look at Remraam if they work in Jebel Ali or Abu Dhabi,” said Chirag Doshi, owner of Manas Properties.
“The biggest thing is it offers green space, even if it’s under development. Plus it has more to offer in future because it is closest to DWC and the Expo site.”
Mr Ziad, he said he would hold on to his apartment for a few years.
“I had completely lost hope after the crisis because market value went down 70 per and it was unrealistic to think things would get better,” he said.
“Now the current market price is about the same as when I bought. I will rent for a couple of years and pay most of my mortgage. When I see a 30 or 35 per cent profit then I will sell.”
rtalwar@thenational.ae
