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)
By Andy Sambidge
Wed 12 Dec 2012 05:04 PM

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.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.