Dubai real estate developer Binghatti Properties has announced a major portfolio expansion as it looks grow to AED100bn ($27.2bn) from the existing AED40bn ($10.9bn).
The ambitious plans will see it more than double the size of its portfolio within the next 18 months.
This comes after Binghatti had recently displayed strong performance in the market in the first half of the year.
Binghatti Properties Dubai expansion plan
Muhammad Binghatti, the Chairman of Binghatti Properties, said the developer is planning to launch 12,000 units within the next three months.
This is in tandem with the developer receiving cashflows from projects that will be handed over during the next three months with a value exceeding $1bn (AED3.67bn).
Binghatti stated that Dubai is deemed one of the most significant real estate investment destinations in the world, and its booming market is characterised by continuous growth, and offers investors various investment opportunities.
He said: “Dubai’s properties continue to appeal to end-users and investors as the average price per square foot is about $352 only, despite the latest hikes, which is equivalent to one third of its counterpart in London at the end of the last year which sat at $ 868.
“Dubai’s average price per square foot was also equivalent to less than half of its counterpart in Singapore sitting at $765, and slightly higher than half of the average price in Los Angeles at $663.
“It is not only about the attractive prices, Dubai also offers diverse exceptional services and facilities everywhere, like airports, hotels, and restaurants.
“For example, the check in and airport control procedures are significantly smoother and uncomplicated. There is also consideration for social security and comfort through the availability of female taxi drivers dedicated to families and female passengers.
“These factors combined enhance the quality of living, invigorate the market, and positively impact real estate prices”.
Binghatti noted that the company recently increased its activity in land expansion with plots purchased in strategic districts of Dubai including Palm Jumeirah, Business Bay and Al Jaddaf.
“The land bank owned by the company is aimed to fulfil the expected demand for approximately two and a half years as we continuously seek to enlarge our land portfolio”, Binghatti said.
Binghatti is looking to expand beyond Dubai and has opened an international office in Riyadh as it looks to establish a presence in the KSA market.
Binghatti, recognised by the Dubai Land Department as the fastest real estate developer in the city, offers more affordable properties as well as luxury branded real estate.
Muhammad Binghatti said: “You can rent a studio for AED45,000 ($12,250) annually in Jumeirah Village Circle. Alternatively, if you want a neighbourhood with more lifestyle and amenity offerings that is closer to the city, you can rent in Business Bay at AED65,000 ($17,700).
“In this context, Binghatti’s presence in all segments of the market, be it mainstream, luxury or uber-luxury plays a role in ensuring our products are available for all”.
He highlighted the fact that $1m (AED3.67m) can buy approximately 1,000sq ft in three of the most prime locations in Dubai, while the same amount secures 172sq ft only in Monte Carlo, which is equivalent to only 20per cent of the value gained in Dubai.
“Dubai offers one of the best value propositions in the world, if not the best overall. The real estate market in Dubai maintained a rental yield rate of 7 per cent to 10 per cent, compared to levels in London at about 3 per cent”.
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