By Shane McGinley
A total of five islands on stalled Nakheel project now for sale, as owners look for quick sale
A total of five islands on Nakheel’s ‘The World’ development have been advertised for sale as owner seek to offload assets in the stalled project, Arabian Business can reveal.
A trio of islands - Finland, Sapporo and Kathmandu – were reportedly put up for sale this week by two Dubai real estate agents, at discounts of up to 17 percent on the original sale price.
Now, a third Dubai agent is offering the man-made islands of Qatar and Ilulussat for sale, complete with multimillion-dollar price tags.
Ilulussat, part of the Greenland development, is priced at AED137.3m ($37m) and promises a “unique chance” to own an island located in the “crystal clear waters of the Arabian Gulf”.
The island group is one of only a few to have seen any significant construction work.
Qatar is listed with a AED68.6m ($18.6m) price tag.
Construction on The World has slowed to a virtual standstill in the wake of the economic downturn, as developers struggle to secure financing.
The majority of buyers on the Nakheel-backed chain of islands have failed to begin work, after Dubai’s real estate market saw prices plummet 60 percent from their peak.
Kleindienst Group, owner of six islands, earlier this month said The World was at risk of erosion if construction did not begin soon.
Nakheel earlier this month said it is in talks to sell the remaining 30 percent of offshore project.
Charles Neil, CEO of Dubai’s Landmark Properties, said the island sales could be positive if new buyers have the funds to push the project on.
“This is good for the project as it may mean the new investors will start developing them,” he told Arabian Business.
Andrew Charlesworth, head of capital markets at Jones Lang LaSalle (MENA), however said
The World may struggle to attract interest as burned investors steer clear of risk.
“This interest is largely focused on completed and income producing properties rather than development opportunities – as most investors are seeking low risk projects let on long term leases to strong tenants,” he added.
The agency has seen an uptake in interest in the wider Dubai real estate market, he added.
If Mr. Neil had 100,000,000 usd would he buy one of those islands? You want the answer? No.