By Andy Sambidge
Developers to link up to build commercial centre, homes and golf course in Mohammed Bin Rashid CIty
Two of Dubai's real estate developers have formed a joint venture to build a huge residential and commercial area near the city's downtown as part of the Mohammed Bin Rashid City project.
Emaar Properties and Meraas Holding, both backed by the Dubai government, plan construction of a commercial centre, low- and mid-rise residences, an 18-hole golf course and other facilities over 11 million sq m.
Featuring vast stretches of landscaped parks and gardens, walkways and extensive open areas, Dubai Hills Estate will serve as a rejuvenating getaway in the heart of the city, a statement published by news agency WAM said.
Dubai Hills Estate, the first phase of MBR City, will also have high-end retail centres and varied leisure amenities plus educational institutions, healthcare facilities and mosques.
The project will be a cornerstone of a planned tourism and retail district announced last November by Dubai's ruler, Sheikh Mohammed bin Rashid al-Maktoum. Over the past year, the emirate's property market has begun recovering strongly from its 2008-2010 crash.
The two companies did not say how much they expected their project to cost, how it would be financed or when it would be completed.
Abdulla Al Habbai, group chairman of Meraas Holding, said: "Dubai's property sector is recording robust growth, led by the transformational growth of the city.
"Our joint venture with Emaar Properties to develop Dubai Hills Estate will bring incredible value to the property sector of Dubai and the city's economy."
Mohamed Alabbar, chairman of Emaar Properties, added: "MBR City is redefining the concept of urban development with a firm focus on the emerging needs of the city, as Dubai further underlines its position as a global business and leisure hub.
"Our plan is to work with Meraas to build a new world-class community that will appeal to discerning customers."
Last month, it was reported that the first phase of Dubai’s Mohammed bin Rashid City will be completed in seven years at the earliest.
The mammoth project will include the world's biggest shopping mall, more than 100 hotels, a Universal Studios franchise and a public park larger than Hyde Park.
The first phase of the project will be developed by 50/50 joint-venture of Dubai’s Meydan and Sobha Group. Known as Mohammed bin Rashid City – District One, the project will feature 1,500 luxury villas, 7km of manmade lagoons and beaches, as well as retail, leisure and sports amenities.
Haven't we already tried something like this?
Wasn't it called Dubailand last time?
No doubt up front funding via residential and commercial off-plan sales, this is really not the way to go about a project of this scale. The up front off-plan funding model has been proved to be flawed, in the face of economic dips elsewhere in the world, they're saying that adverse economic conditions requiring austerity measures are likely to prevail until 2020 now.
Undoubtedly Emaar are the most popular developer based on delivery promises being met, but perhaps you can only stretch this goodwill factor so far. There most certainly has to be government 'hand-in-pocket' funding for something as big as this and will that be possible before the bulk of the restructured debt mountain is paid off.
The recovery has been going like a train but some of the fundamentals are remain fragile, in that Dubai still owes money!
The project is being Developed by JV of Meydan Sobha. The company has started sale of the villas in this project. For more details, one can visit the website of their sales channel partner, Millionaire realty