A property developer has started work on a large resort complex, the first big project to start in the man-made archipelago off Dubai’s coast.
Kleindienst, a Dubai-based international developer, will begin work on the “Heart of Europe” project, a complex of luxury hotels and villas encompassing six small islands. The project is scheduled for completion at the end of 2016, Reuters reports.
Located in the Gulf, approximately five kilometers (3.1 miles) off mainland Dubai, the 60-square-kilometer World Islands is an archipelago made up of more than 200 islands in the shape of a world map. It was completed in 2008 but remained undeveloped since the financial crisis until recently.
Luxury home prices in Dubai increased by the slowest pace in more than a year in the last quarter of 2013, amid a “flurry” of cooling measures introduced in the final months of 2013, according to a new report.
In the last quarter, both prime apartment and villa prices increased 15 percent year-over-year, seen as a slowdown when compared to the average growth rate of 21 percent recorded in the previous four quarters, property consulting firm Knight Frank said in a report.
After home prices in Dubai increased at a rapid pace last year, cooling measures were introduced due to fears of a reemerging housing market bubble.
DUBAI: Dubai property developer Deyaar on Sunday reported a 47 percent rise in second-quarter net profit as it gained from lower costs and fair-value adjustments of prices for its investment properties.
Deyaar, one of the companies worst hit by Dubai’s real estate market collapse in 2009-2010, posted a consolidated net profit of 27.3 million dirhams ($7.4 million) compared with 18.6 million dirhams in the corresponding period of 2012.
One analyst at SICO Bahrain had forecast a second-quarter profit of 6 million dirhams.
Revenue for the quarter dropped to 93.6 million dirhams from 143.5 million dirhams in the prior-year period.
The developer made a gain of 36.6 million dirhams in the quarter from fair-value adjustments for its investment properties. Direct costs for the quarter fell to 2.2 million dirhams from 82.9 million dirhams.
Property firms in Dubai began recovering last year after prices dropped by over 50 percent over several years from their peak in 2008. In July, Dubai’s largest developer Emaar Properties reported a 10 percent rise in second-quarter net profit. Continue reading