Nakheel boss targets rentals to boost recurring income

Dubai developer's chairman announces plan to build 1,000 villas in emirate to rent out

Nakheel chairman Ali Rashed Lootah.

Nakheel chairman Ali Rashed Lootah.

Dubai developer Nakheel is reportedly planning to build 1,000 villas in the emirate to rent out as it looks to boost recurring income.

Construction is expected to start before the end of the year on the new villas, chairman Ali Rashed Lootah said in an interview with Bloomberg.

Last week, Nakheel said it is also set to put extra emphasis on its hospitality projects as it looks to move further away from a focus on property sales, with plans for an additional 2,900 rooms over the next three years.

The additional rooms will come from projected investments of AED4bn ($1.1bn) over the next three years, the developer said at a press conference.

In April, Nakheel reported a 28 percent increase in first-quarter net profit.

The government-owned company made a net profit of AED629m in the first three months of the year, up from AED491 million in the corresponding period of 2013.

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Posted by: Investor

this article is a big shock to me as I have bought villas and apartments from Nakheel in the past 1.5 years and they are just mobilizing to start construction. On some of these properties, I have paid as much as 50% and the money is not going into an Escrow account. So I assume Mr. Lootah and Nakheel are using this money to build villas to rent out? What's the explanation here?! Why aren't they doing anything about the existing projects that they have?

Posted by: Nakheelsux!

Having dealt with Nakheel as an owner I would never ever ever want to deal with them as a landlord!!

The fact that they refuse to talk to Arabian Business pretty sums up that organisation....

Posted by: Bill Carter

I hope they improve the build quality! The villa I am renting in Jumeirah Park has the worse quality of finish I have every experienced in Dubai. I would not rent another Nakheel built villa.

Posted by: Temo Sylivia

I would not touch any Nakheel property with a barge pole either.

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