MARKET STUDY
PREPARED FOR:
Jumeirah Golf Estates
Dubai, United Arab Emirates
IN RESPECT OF:
Plot No 216-3284
Al Rashidiya First
Dubai, United Arab Emirates
P2756 | May 2016
VALUATION & ADVISORY
DUBAI | ABU DHABI | AL AIN | SHARJAH | BAHRAIN | JORDAN
DEFINING LANDSCAPES SINCE 1985
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ASSET MANAGEMENT SALES LEASING
FEASIBILITY STUDY
VALUATION & ADVISORY SALES MANAGEMENT OWNERS ASSOCIATION REPORT
TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY ................................................................................................................................................ 2
1.1 Introduction ................................................................................................................................................... 2
1.2 Permitted Development ............................................................................................................................... 3
1.3 Key Findings ................................................................................................................................................... 3
1.4 Residential Benchmark Analysis ................................................................................................................. 4
1.5 Development Mix Recommendations ........................................................................................................ 5
1.6 Anticipated Revenue, Costs and Operating Expenses ............................................................................. 6
P2756 – Jumeirah Golf Estates
DUBAI | ABU DHABI | AL AIN | SHARJAH | BAHRAIN | JORDAN
Plot No 216-3284 Al Rashidiya
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May 2016 | Page 1
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1.0 EXECUTIVE SUMMARY
1.1 INTRODUCTION
Asteco have been instructed by Jumeirah Golf Estates, hereafter referred to as ‘The Client’, to provide
Market Research and Development Consultancy advice for a Proposed Development located in Al
Rashidiya 1, Dubai, on Plot No. 216-3284 benefitting from planning permission for residential, hereafter
referred to as the “Subject Property”.
In order to determine the Highest and Best Use for the Subject Plot, the following scope of work was agreed
upon with the Client:
Residential Overview of Dubai highlighting supply, demand and current performance in the market in
general and within competitive developments in specific.;
Site & Location Analysis to determine the specific elements that are likely to have an impact on the
proposed development;
Pricing and benchmark analysis of relevant competititive properties;
Development recommendations including anticipated revenues for the Subject Property.
The following Executive Summary presents the key findings and recommendations of our study and should
be read in conjunction with the full report.
P2756 – Jumeirah Golf Estates
DUBAI | ABU DHABI | AL AIN | SHARJAH | BAHRAIN | JORDAN
Plot No 216-3284 Al Rashidiya
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1.2 PERMITTED DEVELOPMENT
Based on the information provided, the Subject Property comprises of a vacant plot of land, No. 216-3284
measuring 14,657.71 sqm (157,716.9 sqft) located within Al Rashidiya First Dubai. The plot benefits from
the following planning permission, as per Dubai Municipality:
PLOT 216-3284, AL RASHIDIYA FIRST DUBAI, UNITED ARAB EMIRATES
Land Use: Residential, Commercial and Offices
Plot Area 14,657.71 Sqm (157,716.9 Sqft)
FAR 1.5
Height: G+1
One parking for each studio and two for flat
exceeding 150 Sqm (1,600 sq ft)
Parking:
1 space per 70 Sqm for commercial uses and
50 Sqm for office use.
10 ft From Neighbor And From Center Of Sikka
Setback:
(Service Road)
Source: Dubai Municipality Plot Locator
1.3 KEY FINDINGS
Following our market study, benchmark and site analysis for the plot, we have noticed the following
elements of relevance to the Proposed Development:
The subject plot is located in Al Rashidiya which borders Dubai International Airport to the north, Umm
Ramool to the west, Nad Al Shamma to the south and Mirdif to the east. The main demand driver for
Al Rashidiya residential area is the proximity to the Dubai International Airport, one of Dubai’s main
employment centers and Umm Ramool Light Industrial area with many employees electing to reside
close to their work.
Whilst not particularly attractive as it borders the industrial area and fronting a heavily trafficed arterial
road, the area is popular with lower–mid income residents due to its convenience (accessibility, metro
connectivity) and its proximity to major employment centre and shopping centres available close by.
The area is in close proximity to Al Rashidiya metro Station which is approximately 1 km away from the
Subject plot.
P2756 – Jumeirah Golf Estates
DUBAI | ABU DHABI | AL AIN | SHARJAH | BAHRAIN | JORDAN
Plot No 216-3284 Al Rashidiya
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Education in Al Rashidiya is provided by a number of public and private schools such as Al Iman School,
Sheikh Ahmed Bin Rashid Al Makhtoum Primary School, Al jahiz Boys School etc.
Al Rashidiya houses malls and Souq named as Bin Sougat Centre with retailers such as Spinneys,
Starbucks, Macdonalds, Al Rashidiya Shopping Centre and Souq Nad rashid.
The area is particularly suitable for the development of a residential development targeting the lower-
mid income segment of the population, including for corporate accommodation purposes, for the
large numbers of employees working in light industrial area in umm Ramool and Dubai International
Airport.
1.4 RESIDENTIAL BENCHMARK ANALYSIS
In order to better estimate the performance of the Subject Property, Asteco have identified a selection of
residential properties that we have benchmarked, in order to assess typical unit sizes, rental rates, facilities,
amenities and finishes, as detailed below:
SIZES (SQFT) RENTAL RATES
TOWER UNIT TYPE FACILITIES
FROM TO FROM TO
STUDIO 300 350 85,000 Swimming Pool
Gym
AL BUSTAN CENTRE* 1BR 800 850 90,000 95,000 Parking
Tennis Court
2BR 1,100 1,200 140,000 Health Club
Swimming Pool
STUDIO 400 500 45,000 50,000
Gym
Kitchen with white
MOOSA ABDUL REHMAN 1BR 800 900 75,000 80,000
goods
Built in Wardrobes
2BR 1,300 1,350 85,000 90,000 24/7 Security
Central AC
1BR 800 900 60,000 65,000
24/7 Security
OMAN HOUSE No Gym
2BR 1,300 1,350 75,000 80,000 No Swimming Pool
Balcony
1BR 700 55,000 62,000
Built in Wardrobes
RAINBOW HOUSE 24/7 Security
2BR 1,000 70,000 75,000 No Gym
No Swimming Pool
STUDIO 400 40,000 45,000
Gym
No Swimming pool
COURTYARD BUILDING 1BR 800 55,000 65,000
24/7 watchman
24/7 maintenance
2BR 1,500 2,500 80,000 90,000
P2756 – Jumeirah Golf Estates
DUBAI | ABU DHABI | AL AIN | SHARJAH | BAHRAIN | JORDAN
Plot No 216-3284 Al Rashidiya
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SIZES (SQFT) RENTAL RATES
TOWER UNIT TYPE FACILITIES
FROM TO FROM TO
STUDIO 410 35,000 40,000 Gym
No Swimming pool
AL WARQAA BUILDING 1BR 746 50,000 60,000 24/7 watchman
24/7 maintenance
2 BR 883 63,000 70,000 Covered Parking
Gym
1BR 850 55,000 65,000 Swimming pool
24/7 watchman
AL JAZERI BUILDING 24/7 maintenance
4 lifts
2BR 1,450 65,000 70,000
CCTV
Covered Parking
Source: Asteco Research, Q1 2016
*The rates in Bustan Centre are for fully furnished units.
Based on our research it appears that all properties enjoy strong levels of demand with resultant high
occupancy rates in the respective areas.
1.5 DEVELOPMENT MIX RECOMMENDATIONS
Taking the above elements into account and considering current demand in the market as well as
relevant benchmarks, we believe that the Subject Property is well suited to provide mid quality
residential apartments affordable to mid income singles, couples and small families and also suitable for
staff accommodation.
The development mix recommended is focused on studio, 1 bedroom and 2 bedroom apartments
supported by facilities such as swimming pool and gymnasium adequately sized to serve the resident
population.
In addition there is the opportunity to provide a retail component at ground floor which would would be
targeted to serve the residents as well as the population located within the immediate vicinity.
The site has permission for office use however Asteco would recommend that this land use category not
be included in the overall mix and land use be concentrated soley on residential and retail land uses.
The table below outlines the propose development mix for the project with details of our
recommendations provided in the Development Recommendations section of this report.
Plot Area (Sqft) 157,774
FAR 1.50
Net Area 189,329
Permitted GFA 236,661
P2756 – Jumeirah Golf Estates
DUBAI | ABU DHABI | AL AIN | SHARJAH | BAHRAIN | JORDAN
Plot No 216-3284 Al Rashidiya
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LAND USE BREAKDOWN GROSS FLOOR AREA NET FLOOR AREA COMMENTS
RESIDENTIAL 236,661 189,329 Gross/Net - 80%
DEVELOPMENT MIX
AVERAGE SIZE % TOTAL NET
UNIT TYPE UNIT NOS NET AREA PARKING
(INTERNAL) AREA
STUDIO 450 80 36,000 19% 80
1 BEDROOM 800 100 80,000 42% 100
2 BEDROOM 1,250 50 62,500 33% 50
RETAIL 10,000 5% 20
RECREATION FACILITIES 2,500 1%
TOTALS 230 191,000 100% 250
1.6 ANTICIPATED REVENUE, COSTS AND OPERATING EXPENSES
Accordingly, we estimate that the property could achieve the following rental rates in the current market.
REVENUE ESTIMATES
AVERAGE UNIT RENTAL
UNIT TYPE UNIT NOS TOTAL RENT RATE /SQFT
SIZE RATE/ANNUM
STUDIO 450 80 50,000 4,000,000 111
1 BEDROOM 800 100 65,000 6,500,000 81
2 BEDROOM 1,250 50 85,000 4,250,000 68
RETAIL 10,000 150 1,500,000 150
TOTALS 16,250,000
In evaluating the financial performance of the development we would assume that all the 230 residental
units would be leased up within a period of 12 months (approximately 18 units per month), with an
allowance for a 5% rolling void during the period of the cash flow and operating expenses estimated at
10/12% of gross revenues.
In terms of construction costs, we have provided an indication of the potential project cost based on data
obtained from recent projects we have undertaken as well as cost information available in the public
domain. The cost assumptions are detailed in the table below:
DEVELOPMENT COST(*)
FLOOR LEVEL BUA/GFA NLA COST/RATE TOTAL COST
Basement (200 cars) 85,000 Parking 250 21,250,000
Residential/Retail 236,661 350 82,831,298
Professional Fees 6% 6,244,878
Contingency 5% 5,204,065
Totals/BUA 321,661 359
Totals/NLA 191,000 605 115,530,240
Note: It shall be noted that Asteco are not cost consultants and, as such, construction costs are provided for indicative purposes
(*)
only. These are based on current market rates for similar projects in Dubai.
P2756 – Jumeirah Golf Estates
DUBAI | ABU DHABI | AL AIN | SHARJAH | BAHRAIN | JORDAN
Plot No 216-3284 Al Rashidiya
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PHOTOGRAPHS OF THE SUBJECT PLOT 216-3248
P2756 – Jumeirah Golf Estates
DUBAI | ABU DHABI | AL AIN | SHARJAH | BAHRAIN | JORDAN
Plot No 216-3284 Al Rashidiya
© Asteco Property Management, 2016 asteco.com | astecoreports.com
May 2016 | Page 7
