This was written by Mr. Mehmood in another property forum and has given quite an interesting view on skycourts and I totally agree with what he has to say!!!
Even I have a 2 B/R on the higher floor. In my view the development has substaintial upside due to the following reasons.
1. Location: As of today it is not more than 15 mins drive from Business Bay/ Burj Dubai, it is close to already active Dubai Outlet Mall (4 KM on an empty road), next to a premium development like The Villla and close to employment areas viz Silicon Oasis, Outsource Zone and Academic City. There are other developments which are selling in the similar price ranges or even higher, but are in way interior e.g. Remraan or some other private developers project in the interior of dubailand, JVS, DIP, etc.
2. The project owner is National bonds a Government Entity. 1000 times better than 100’s of private developers in dubailand, sports city, jvs and other projects that are still selling at higher prices
3. The project is being financed by 3 banks that i know of Dubai Bank, Amlak & Dubai Islamic Bank at 90% of current market value. Again a big upside when compared to private developers which no banks are financing or in some cases if banks are finaning, the down payments are high from 25% to 30 %
4. The construction has already started and as long as the project gets delivered in end on 2009, i dont see too much of an issue. the other projects like remraan will not get delivered before 2011
5. there was some news that skycourts will be managed by deyaar and national properties will merge with it. deyaar developments have always comanded higher prices due to its quality. In silicon oasis deyaar has sold at psf of aed 1500 to 1600
6. i do agree that it has nearly doubled since its launch in jan 2007. however the construction cost has gone up consideraby since than. The new projects are no longer viable at psf of less than aed 1000 and here we have a project on which the construction cost may have frozen a year back. V are worried that it is overheated only because it was launched at aed 650- 700 psf. When this was launded in jan 2007, an apartment of Deyaar in JLT was availble to me at 750 psf, but now it is going at 1700.
I think the price here has long way to go before delivery.
October 15th, 2008 | Tags: academic city, amlak, burj dubai, business bay, deyaar, dubai bank, dubai investment park, dubai islamic bank, dubai outlet mall, dubailand, jlt dubai, jumeirah lake towers, national bonds, national properties, outsource zone, remraan, silicon oasis, sports city, the villa | Category: General | Comments (2)
