PHOTO
Almal Real Estate Development, a Dubai-based developer of luxury residential projects, recently broke ground for its second project after the award-winning Harrisoni La Mer luxury villas. The $280 million 'The Unexpected Al Marjan Island Hotel and Residences', located on Al Marjan Island in the emirate of Ras Al Khaimah (RAK), is anticipated to be ready in two years.
Almal Real Estate Development's Founder Dmitriy Starovoitov said the land for the Al Marjan project was acquired in 2023.
He told Zawya Projects that the choice of Ras Al Khaimah for the 422-key luxury hotel and residences project was a strategic decision rooted in the evolving dynamics of the UAE real estate sector.
"While Dubai has traditionally dominated, Ras Al Khaimah is emerging as a key player due to its stunning landscapes, robust economic growth, and a forward-thinking approach to sustainable development," he said.
The upcoming Wynn Al Marjan Island, the first integrated gaming resort in the Middle East and North Africa (MENA) region, which is set to open in early 2027, is expected to boost the project's appeal and investment potential.
"As the Wynn project elevates the island's profile and attracts affluent visitors, we anticipate a notable increase in property values and rental demand," said Starovoitov. "This expected rise aligns seamlessly with our objective of delivering a high return on investment for our stakeholders."
He said the company's current project portfolio in the UAE includes the Harrisoni La Mer villas and The Unexpected Al Marjan Island Hotel and Residences, which the Palladium Hotel Group will operate under its Ushuaïa Unexpected Hotels and Residences brand.
"While we are not disclosing the total valuation of our portfolio currently, the combined development costs for these projects reach up to $350 million," he said.
Excerpts from the interview:
What kind of return on investment can investors expect from The Unexpected Al Marjan Island Hotel & Residences?
Investors in the project can anticipate a strong return on investment. After covering operational costs, investors will benefit from a substantial portion of the revenue, with 80 percent going to buyers and 20 percent retained by the developer. This distribution, coupled with high demand and strategic location, ensures a favourable net profit margin.
Has the main contract been awarded?
We are currently in the tender preparation process for the main contract. We have strong connections with top contractors whom we will be inviting. Our PMC [Project Management Consultant] and Lead Consultant are already on board, with the project handover scheduled for the fourth quarter of 2026. [Editor's note—Dubai-based Design & ARchitecture Bureau (DAR) is the lead design consultant for the project.]
Are you seeing an increase in construction costs in the UAE?
Yes, construction costs in the UAE are rising due to inflation, a shortage of strong contractors, and increased demand from new real estate development projects of varying scales, which keep contractors consistently busy. These factors significantly impact tender prices. However, our unique and prestigious projects will still attract top contractors who value the opportunity to work on distinguished developments.
How are you financing the project?
We are financing the project through a network of investors committed to supporting its development.
What is the project's USP in terms of design and sustainability?
The USP of 'The Unexpected Al Marjan Island Hotel & Residences' is its harmonious blend with the coastal landscape and innovative design. The architecture seamlessly integrates with the ocean, using light-coloured materials to create a serene daytime ambience and dynamic LED lighting to transform the space by night. Inspired by cymatics, the design features patterns that reflect the natural rhythm of the sea, enhancing both visual appeal and environmental connection. Sustainable elements include energy-efficient lighting, reflective materials to maximise natural light, and thoughtful design choices that minimise environmental impact while offering a unique and immersive experience.
Are you seeing an increase in land price in the Marjan master development?
Yes, we are observing an increase in land prices in the Marjan master development. This rise is driven by the approaching opening of Wynn Al Marjan Island and the influx of high-end operators coming to the island, which will significantly enhance the area's attractiveness and investment potential.
What is your outlook on the real estate market in the UAE, particularly RAK, over the next two years?
The outlook for the real estate market in the UAE, especially in RAK, is promising over the next two years. With ongoing developments like Wynn Resorts and increasing interest from high-end operators, RAK is poised for significant growth. The region's expanding infrastructure and rising luxury demand are expected to drive property values and investment opportunities upward.
How much land bank do you own in the UAE? What are your growth plans going forward?
Currently, we hold a substantial land bank of 33,000 square metres (sqm) in the UAE, strategically positioned to support our ongoing and future developments. Our growth plans involve expanding our portfolio with high-value projects in prime locations and leveraging our land assets to drive further investment and development opportunities in the hospitality and residential sectors.
Lastly, could you comment on concerns in the real estate sector regarding high interest rates, the construction material supply chain, and the availability of contractors?
These challenges can affect project costs and timelines, but we are actively addressing them through strategic planning and strong partnerships.
(Reporting by Anoop Menon; Editing by SA Kader)
Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa
