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First Lake in Jumeirah Lake Towers

The 51,600 square metres lake, which sits beneath the centrepiece Almas Tower, was formally inaugurated by Ahmed Bin Sulayem, executive chairman of master developer Dubai Multi Commodities Centre (DMCC) in a balloon releasing ceremony.

Named ‘Zafeer’, or ‘Sapphire’, it is the first of four man-made lakes to be completed at the 200-acre mixed-use development.

The water was filled two weeks ago, and despite a drainage system which connects the lake to the Gulf through underground pipes, construction workers were seen fishing algae from the water prior to the red carpet ceremony. “With escalating demand, previously untouched areas of Dubai have bloomed and grown at a rapid pace, more so than infrastructure developments in the same areas,” said Bin Sulayem, in a general speech.

Currently, 25 towers are occupied out of 87. The first tower was completed in December 2006, but this year 25 more towers will be ready. The remaining 37 towers will be completed in 2010 and 2011.

While much of the development resembles a continuous construction site, property prices and rents have previously been as high as those in the Marina, on the opposite side of Shaikh Zayed Road.

However there have been signs that these prices could weaken. Average rents for a three bedroom apartment have already fallen from Dh250,000 in August to Dh200,000 at the beginning of January.

According to some investors, property prices have also fallen from Dh2,200 per square foot to around Dh1,500 today.

Brian Wilson, executive director of properties at DMCC, said that it was very difficult to tell whether the new influx of properties onto the market would create an oversupply.

“It’s impossible to say whether demand will fall,” he said. “People could stop coming to Dubai or could lose their jobs and go home.”

· martin@khaleejtimes.com