Nakheel to sell 1,150 apartments near Dubai’s Dragonmart

The property developer Nakheel is set to begin selling about 1,150 apartments in a major tower development to be built at its Dragonmart retail complex on the outskirts of Dubai. (AFP)
Updated 18 April 2018
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Nakheel to sell 1,150 apartments near Dubai’s Dragonmart

MADRID: The property developer Nakheel is set to begin selling about 1,150 apartments in a major tower development to be built at its Dragonmart retail complex on the outskirts of Dubai.
The Palm Islands developer is tendering the project, which was originally intended for company’s rental portfolio, its chairman, Ali Rashid Lootah, told Arab News on the sidelines of the World Retail Congress in Madrid. Lootah said that the project would not be officially launched until the construction contract had been awarded, which is expected later this year.
“It is important to win the customer’s confidence,” he said. Nakheel is gearing up to complete 1,500 villas in the city’s Nad Al Sheba district, which will be rented.


The handover is expected to boost the developer’s recurring revenues this year as it switches its focus from massive masterplanned projects to increasing rental income through the construction of hotels and shopping malls.
“A lot of our product will be in the market in the third quarter of this year, so our recurring income next year will be much higher,” Lootah said. He also revealed that the developer was eyeing more projects in the UAE’s northern emirates.

The Dubai property market is coming under pressure after six years of rampant construction that has led to a glut of new homes, encouraging developers such as Nakheel to boost their recurring revenues and reduce their reliance on one-off sales.
About 3,000 units entered the market in the first three months of 2018, with almost 80 percent of them apartments, according to data from JLL, the property broker.
Sales prices in the emirate have declined by about 4.1 percent over the year, while rents have fallen by about 6.5 percent, it said.
Dubai’s retail sector has been even worse off, with thousands of square meters of new space hitting the market. JLL estimates that retail rents have fallen by as much as 25 percent in the past year with vacancy rates rising from 9 percent to 12 percent.

FASTFACTS

3,000

New residential units entered the Dubai property market in Q1 2018, according to JLL


Energy Recap: The oil market wavers

Updated 20 min 1 sec ago
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Energy Recap: The oil market wavers

RIYADH: Oil prices went in different directions at the end of the week. Brent deteriorated to $67.03 per barrel and WTI rose to $59.04 per barrel, but both remain at four-month highs. 
Still, poor economic signals that added to the generally bearish mood did not manage to drive oil prices down because of the tightening global supplies that led the surprise drawdown in US inventories.
The 10 million barrels fall in US crude stocks was the largest drop since July 2018, due to a combination of strong exports and higher refining utilization. 
The reduced number of US oil rigs for a fourth week running sent drilling activity to its lowest in nearly a year.
The current level of oil prices does not reflect the market’s relatively strong fundamentals and supply tightness.
The Arabian Gulf sour crude grades have seen extensive buying activity with refiners securing spot cargoes in addition to their term cargoes.
Such high demand for the sour medium and heavy crude grades had Dubai crude in high demand.
Asian refiners are becoming increasingly concerned about the tightening supplies for the medium and heavy crude grade.
That is because many of them lack the flexibility to swiftly switch their refining systems to handle alternative light sweet crude grades that have low sulfur content. 
The market remains preoccupied with Iranian sanction waivers, which may be extended for another round of six months.
Given the tight oil market that has been further exacerbated by the sanctions on Venezuela, the second half of this year might experience further tightening.
The US is widely expected to continue extending the waivers for the key importing countries which are China, India, Korea and Japan. 
The a potential second round of waivers may not impact the market as much as last time in November 2018 when the price dropped by as much as $30 per barrel.
Helped by OPEC output cuts, the market has been stabilizing gradually even if not entirely recovering those early losses.
The current market appears too tight to be moved significantly by further waivers and should be able to absorb additional barrels — be they from Iran, Venezuela, Libya or the US.
Even with the last round of waivers, Iranian oil exports did not exceed 1.25 million barrels per day in February.

  • Faisal Mrza is an energy and oil market adviser. He was formerly with OPEC and Saudi Aramco. Reach him on Twitter: @faisalmrza