Union Properties has announced plans of launching a new AED 400 million mixed-use project in Dubai’s suburban locality Motor City, Dubailand. The developer expects to develop between 250 and 300 units along with retail options on the ground and mezzanine floors. The expected construction cost is estimated between AED 200 million and AED 250 million.
A news website reported that the developer was looking to develop smaller unit sizes in a bid to offer affordable residential options to the people. Dubai’s suburban localities are preferred by people looking either for a serene environment or affordable residential spaces. If Union Properties develops an affordable mixed-use project perfect for small families, there are high chances that the project would become exceedingly popular in the years ahead.
Union Properties already owns multiple plots of land in other master communities of Dubai, but its plans of developing its own land, particularly in Motor City, is quite commendable. Apart from that the developer had already signed an AED 290 million project finance facility with National Bank of Ras Al Khaimah and Ajman Bank for the development of its AED 450 million Oia Residence.
Per reports, China State Engineering Corporation Middle East has already commenced work on the 269-unit project (Oia Residence) and it is set for completion by end-2017. The real estate market of Dubai is getting back on its feet steadily and developers are once again launching new projects as there is genuine demand in the market.
Speaking of the prospering real estate market, Union Properties’ net profit reportedly doubled to AED 113.8 million in the first six months of 2016 from AED 47.5 million. The developer said that its total income had now risen to AED 593.3 million from AED 576.3 million.