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Dubai-based Acube Developments will break ground on Electra, its latest residential project, in Jumeirah Village Circle in the second quarter of 2024, with handover expected in the second quarter of 2027, Chairman & Managing Director Ramjee Iyer told Zawya Projects.
“Our tender timeline changes based on the location, size of the project and the partners involved,” he said without revealing any tender details.
The developer is utilising efficient construction techniques, strategically sourcing materials, and optimising project timelines to effectively manage costs.
“We aim to maintain the highest quality in our construction processes while managing costs effectively to ensure project feasibility,” he said.
Acube Developments aims to develop and sell one million square feet of residential property in Dubai by 2025.
Excerpts from the interview
What are your criteria for selecting the locations for residential projects in Dubai/UAE?
After the successful launch of Adhara Star in Arjan last year, Jumeirah Village Circle (JVC) was our next destination to launch the 38-storey Electra, primarily due to JVC’s welcoming ambiance and a plethora of amenities that cater to the diverse needs of its residents.
JVC’s strategic location, close to major transportation hubs, including Sheikh Mohammed Bin Zayed Road, Al Khail Road, and Hessa Street, ensures seamless connectivity to Dubai’s key destinations.
With an array of shopping, dining, and recreational options, coupled with ongoing development projects, JVC continues to be the most demanded neighbourhood in Dubai as per sales volumes.
What is the size and value of your land bank in the UAE?
We are on a forward trajectory to develop and sell one million square feet of residential property in Dubai by 2025. We maintain a sizeable land bank and continue to add more when the opportunity presents itself.
How many new residential projects will you launch this year?
We have several new projects in the pipeline for 2024 and 2025. The exact timings when these will be announced is still a work in progress.
Which factors drive you to focus on the UAE real estate market’s residential segment?
Dubai stands out with its diverse housing options, from affordable to ultra-luxurious properties. Despite its luxury market status, the emirate remains highly affordable over other cities such as London, New York, or Singapore. This affordability, combined with the city’s exceptional lifestyle and safety, attracts international buyers and residents.
The UAE real estate market continues to deliver strong returns, according to CBRE’s first quarter 2024 UAE residential market review. The report also highlights that rental costs have surged by 26 percent, making property purchases an attractive investment for long-term returns.
Government initiatives, such as extended long-term visas and zero income tax or capital gains for non-residents, enhance the market’s appeal.
Additionally, emerging markets such as Abu Dhabi, Sharjah, and Ras Al Khaimah offer affordable housing, scenic views, and cultural diversity, attracting diverse homebuyers. We are set to capitalise on these factors and provide compelling investment opportunities in the thriving UAE market.
What is the tender timeline for your new project, including the issuance and awarding of enabling and main contracts?
Our tender timeline changes based on the location, size of the project and the partners involved. Our team works collaboratively with our partners to ensure efficient, timely award of contracts and execution.
Who is the project’s architect? What is your project’s USP in terms of design?
Our chief architect for Electra is Adnan Saffarini. In addition, we appointed Sanderson Global Consultancy to develop over 50 unique amenities. Sanderson Global is behind the development of attractions of many of the world’s famous theme parks including Sea World, Universal Studios Singapore, and Dubai Parks & Resorts to name a few.
How much focus do you give to sustainability and environmental issues in your projects?
Electra incorporates various sustainable elements that align with our commitment to environmentally responsible development. The project will include energy-efficient lighting and appliances, reducing energy consumption and lowering utility costs for residents. We will install water-saving fixtures to minimise water usage, contributing to water conservation efforts.
While specific materials may vary, we continuously evaluate and incorporate eco-friendly and sustainable construction materials into our projects to reduce our environmental footprint. Our landscaping design aims to create a green and serene environment, enhancing the project’s overall sustainability and aesthetic appeal.
What is your take on construction costs in Dubai? Developers have had to deal with supply chain challenges and a shortage of reliable contractors. How are you addressing these issues?
Construction costs can fluctuate in any market due to factors such as material prices and supply, labour availability, and market dynamics. While we monitor these costs closely, we proactively manage them by employing efficient construction techniques, sourcing materials strategically, and optimising project timelines. We aim to maintain the highest quality in our construction processes while managing costs effectively to ensure project feasibility.
What is your market outlook for the UAE property sector, particularly Dubai, over the next two years?
Dubai’s real estate has been a beacon of growth over the past decade and will continue to do so in the future as well. With increasing demand due to an influx of people moving to the emirate and development initiatives from the government, the growth of Dubai’s real estate market doesn’t show any sign of slowing.
Data from recent reports shows that the residential market has sustained an upward trajectory, marked by unprecedented transaction levels in 2023, along with an increase of 18 percent and 26 percent year-on-year for sales prices and rents, respectively, anticipated to grow further by the end of 2024.
The real estate market in the UAE is projected to grow by 3.03 percent annually from 2024-2028, resulting in a market volume of $0.80 trillion by 2028.
(Reporting by P Deol; Editing by Anoop Menon)
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