Project fills Downtown Dubai gap for studios

The 'build and they will come' philosophy may not always work for developers unless due diligence has been done to identify a market gap and tailor a product accordingly. Emirati developer SRG Properties has done just this - sensing the under-supply of studios in Downtown Dubai and Business Bay, the group has embarked on a 29-storey residential tower in Burj Khalifa Street, where 62 per cent of the project is allotted for studio units.

Marquise Square comprises 384 apartments, which are made up of 237 studios, 59 one-bedroom, 70 two-bedroom and 18 three-bedroom apartments. SRG Properties officially launched sales for the tower on Wednesday, with Select Property chosen as the master sales partner and
Dubai Contracting Company appointed as the main contractor.

However, the tower had a pre-launch on August 1 this year, where existing investors of SRG Holdings and Select Property purchased 67 apartments, accounting for Dh90 million in sales revenue.

"Typically, developers go for bigger units since they don't want to commit parking spaces for studios. However, in Marquise Square, we have allotted one parking space for each studio along with other amenities," said Adam Price, managing director of Select Property (Dubai and Singapore).

Meanwhile, construction has begun on site, with excavation and shoring complete and 80 per cent piling work also in place. The tower is slated for completion in Q4 2018.

The price per sq foot at Marquise Square ranges from Dh1,000 to Dh2,000, with the average price being Dh1,750 per sq ft. A studio is priced from Dh895,000, a one-bed for Dh1.3 million, a two-bed for Dh2.19 million and a three-bed for Dh3.12 million.

Fahad Al Rafi, CEO of SRG, said: "Marquise Square has been designed to maximise yields for investors by offering spacious, yet efficient luxury apartments, each offering a view of either Burj Khalifa or the Dubai Water Canal. The development embraces best practices in efficiency and sustainability."

As far as the developer's track record goes, SRG Holdings' real estate portfolio includes Burj Al Salam, the Sheraton Grand Hotel, Marina Heights and Al Salam Tower in Barsha Heights and projects in London.

Facilities in Marquise Square include a swimming pool, gym, children's play area, prayer room, sauna and steam room, restaurant and retail space, and a 24-hour concierge.

Talking about buying patterns, Price said: "Investors are opting for studios while lifestyle buyers are going in for the bigger apartments, purchasing them as holiday/secondary homes. For investors, studios represent a strong return on investment, good rental yields and capital appreciation."

The developer has put in place three incentives during the launch phase. Apart from a launch discount of 2.5 per cent, the group has also opened up units in floors 22 and 28 to ensure that investors and end-users have a chance to purchase on higher floors at an early stage. Also, buyers can put forth a reservation deposit of five per cent, pay 15 per cent upon signing the sales and purchase agreement, 15 per cent on June 1, 2017 and the remaining 65 per cent upon completion in Q4 2018. "This payment plan facilitates buyers to pay minimum capital during the construction process," Price informed.

The launch incentives will be valid for 30 days starting from Wednesday. "We don't use high-pressure tactics to complete sales. The Dubai market has matured and evolved. We are giving a good period of time for our buyers to make their investment decision," he added.

The real estate executive believes the Dubai property market is on the threshold of the next growth curve. "We have unwavering commitment in the fundamentals of the Dubai property market. Despite the cooling period in the market for the past two years, rental yields have remained strong. The market has matured over the past 18 to 20 months owing to cooling measures introduced by the government. This has encouraged investors with a mid- to long-term outlook and driven out speculators."

- deepthi@khaleejtimes.com

An illustration of a lounge in an apartment at Marquise Square.