Nakheel sells $15m Dubai villa plots in 2 hours

Dubai developer says investor interest in Jumeirah Islands is proof of real estate recovery

(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

Nakheel said on Wednesday that it sold more than AED55.4m ($15m) worth of villa plots at Jumeirah Islands, with all available plots snapped up in two hours.

The plots were sold at auction for higher-than-expected prices, hitting AED513 per square foot, the Dubai developer said in a statement.

"The sales are yet more proof of renewed investor confidence in Dubai's real estate market," the developer added.

On Thursday, Nakheel will begin sales of 90 villas at Jumeirah Village Circle. Prices for the four bedroom, 3,700 sq ft homes start at just under AED3m.

A Nakheel spokesman said: "Today's auction was a resounding success, and we are confident of high-levels of interest in the Jumeirah Village Circle villas tomorrow.

"Recently we sold two plots of land at Palm Jumeirah for a combined price of AED419m and 122 residential villa plots in Jumeirah Village Circle for a total AED113 million. There is no doubt that investor confidence is back."

Nakheel also cited a recent report by CBRE on increases in property rents as further evidence that Palm Jumeirah, its flagship development, is one of Dubai's most highly sought-after locations to live.

"This report confirms what we have been saying for some time - Palm Jumeirah prices continue to rise," the spokesman added.

Earlier on Wednesday, Nakheel Properties said it had made a AED210m ($57m) payment to sukuk holders as part of its debt restructuring deal which repays trade creditors 40 percent in cash and 60 percent via the Islamic bond.

The sum takes the total amount paid to trade creditors to AED9.6bn ($2.6bn) since November 2009, the developer said.

In October, Nakheel said net profit for the first nine months of the year nearly doubled, helped by property handovers and growing business in its retail and leasing segment.

Net profit for the nine months ended September 30 was AED1.1bn ($299.5m), up from AED600m in the year-ago period.

Revenue for the nine months rose to AED4.5bn from AED2bn in the prior-year period.

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Posted by: LA B

Why are the old projects that are on hold not being revived and completed? Only new projects announced to show all is fine. I hope that the money gained from these sales will also be used to complete old projects that were looked up to during boom times

Posted by: Distraught Resident

It is so sad, Nakheel is destroying our beautiful Jumeirah Islands, they completed the villas 7 years ago n delayed the delivery of Mansions 'forced construction' for 3 years, destroying our quite atmosphere then, now this new sale, out of the box, never ever known to the residents is a big blow.
It is worth to note that after 7 years, yet they could not fix the security gates.

Posted by: Andy

Key words here are "SAYS" lol.. In courts this is described as Heresay.

Posted by: Red Snappa

Fifteen million dollars, could hardly be construed as a major indication of recovery. It pales into insignificance compared witha restructured debt of US$ 16.1 billion along with the hundreds of millions Nakheel will have to shell out on the construction contract relative to 400 Legacy Villas recently resurrected.

In fact, I would question whether a previously financially burned contractor would be prepared to take the latter development on, given the deferred payment risk analysis. As an aside, whatever happened to the Government guarantee, through the Land Department, known as Tayseer qualified projects, do Legacy Villas fall under this umbrella, or has that scheme been abandoned, reached its financial boundaries etc, etc?

Anyway, these incoming amounts from land sales are frighteningly small, including the US$ 114 million received for a plot on the Palm Jumeirah in the not too distant past, when compared to the combination of ongoing operating costs and financial liabilities.

Posted by: RBH

I would like to know who were the buyers. Were they Nakheel or Dubai World executives?! Hehehehe...

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