Nakheel's Week: Good News and Bad News for Dubai Developer

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(DUBAI, UAE) -- This was the week that Nakheel announced it was handing over 300 homes at Jumeirah Village. The development which will be completed in 2013 will ultimately house some 300,000 people. It is already 96 percent sold with 2200 villas and residences due to be handed over to owners by the end of this year.

Chief Executive, Chris O'Donnell, said, "Nakheel developments will become home for half of Dubai's population over the next 20 years. It is an enormous vision on an unprecedented scale; but it's a vision that we are delivering, and our New Dubai communities are fundamental to that."

Nakheel also announced this week that Al Furjan, part of the so-called New Dubai series of developments would be ready for families to move into within the next 24 months. Al Furjan is a family-focused neighborhood with a strong sense of community. The open interiors of Al Furjan homes cater to Arabic, Asian, and Western tastes.


On the other hand, this was the week that at least one agent saw prices for luxury villas on Palm Jumeirah, Nakheel's flagship iconic project , go down 50 percent since September. Four-bedroom garden homes are now selling as low as $1.8 million down from $3.8 million four months ago, according to PowerHouse Properties.


Ian Hainey, Palm sales specialist for the company, said, "Many end-users who previously could not afford to live on Palm Jumeirah are also now turning their attention to the bargains currently on offer." Hainey said there had been an increase in Palm Jumeirah buying activity during January as buyers sought to take advantage of lower prices.

Today, more bad news for Nakheel with the announcement that the plans to build four theme parks with Busch Entertainment Corporation have been delayed for a year. No reason was given.

The two companies were to cooperate in creating SeaWorld and Aquatica by the end of 2012 and Busch Gardens and Discovery Cove by 2015. All the themed attractions are to be on Palm Jebel Ali, the second group of islands created by Nakheel.

The project is the latest Nakheel development to be delayed. The company announced last month it was stopping foundation work for 12 months on Nakheel Harbour and Tower. Late last year Nakheel delayed several of its flagship projects, including the Trump International Hotel and Tower, in addition to axing 500 jobs amid the global financial crisis.

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