By Shane McGinley
Dubai-based master developer currently has 522 berths, 50% of which are still unsold
Nakheel, the real estate arm of debt-laden conglomerate Dubai World, has confirmed it plans to nearly double the number of berths on offer in marinas on Palm Jumeirah, despite half of the current berths still being unsold.
“Palm Jumeirah Marina provides a 522 berth for boats, and we are planning to increase this number to 1000 berths in the future,” a Nakheel spokesperson told Arabian Business in an emailed statement.
“We sold 50 percent of berths and we still have the rest [of the] berths for leasing. We offer different prices for boats, depending on the lengths of the boats and services provided,” the statement added.
The manmade Palm Jumeirah currently comprises two marinas, Marina East, launched in April and Marina West is scheduled to open later this year.
The news is likely to be a bid to capitalise on the growing demand for luxury yachts. Last month, organisers of the Dubai International Boat Show said they expect sales to reach AED1bn as a direct result of the show.
More than 750 international companies and brands took part, with 26,000 visitors attracted to the show.
The event recorded around AED500m worth of onsite sales, with exhibitors expecting around the same value to come, organisers said in a statement.
ART Marine, one of the largest exhibitors, reported record-breaking sales totaling AED240m during the show.
Helal Saeed Almarri, CEO, Dubai World Trade Centre, organiser of the event, said: "This event not only confirms that the leisure marine industry has a strong and a healthy future in the Middle East."
One of the deals to be signed after the show included an order from the Government of Sudan for 45 boats worth AED18.5m.
Would it be possible for Nakheel to finish some other more pressing projects for which investors have paid good money before embarking on another luxury demand delusion.
Most of the people that live on the Palm now are paying pretty low comparitive rents because of an ongoing falling market, they are normal middle class folk, who have taken advantage of market conditions. In other words they are not a majority of Russian oligarchs, Greek shipping tycoons with expensive ocean going craft.
I also imagine that there are plenty of other unrented births around Dubai at the moment, despite the sales at the boat show.