The Dubai-based Al Habtoor Group plans to build two new hotels, 74 homes and a polo club in the city for an estimated $545 million.
Bloomberg reported that the company, controlled by billionaire Khalaf al Habtoor, is already building three hotels consisting for 1,600 rooms in the city.
This uptick in construction the Habtoor Group's response to the growing property market in Dubai, where occupancy is sitting at 77.8 percent. In total, the Al Habtoor Group is investing $4.8 billion in Dubai development to be completed by the end of 2017.
Khalaf Ahmad Al Habtoor told Gulf News that all of the developments are being funded primarily from the company’s cash flows, with some part being financed through local institutions. “We have secured 100 per cent of the financing,” Habtoor said.
The first hotel, the Metropolitan Sheikh Zayed Road, is set for completion in 2016 and will have a total of 334 rooms and suites. The hotel is being designed by Khatib & Alami, and will also have a Red Lion traditional English pub.
The next property is the Al Habtoor Polo Resort & Club in Dubailand, a 6-million-square-foot development that includes a hotel with 136 keys, 162 bungalows, four polo fields, a polo club, a polo academy and a riding school with 500 stables. The project will be constructed in phases, with the hotel and bungalows set for completion in 2017.
The Group is also constructing the Oasis Villas project, which will be located alongside the Metropolitan Sheikh Zayed Road in Jumeirah. The property consists of 74 units, is due for completion in 2016, and will include a gymnasium, communal swimming pool, children’s play area and a jogging track. The four, five and six bedroom villas in the project will only be available for leasing.
The announcement of these new projects comes one day after analysts Knight Frank said the Dubai real estate market recorded its first quarterly decline in four years, seeing prices fall more than 5 percent between June and September, though prices remained 12.5 percent up in Q3, 2013, according to Arabian Business. Al Habtoor told Arabian Business he was not deterred by the market report and believed Dubai real estate was performing well.
“It doesn’t matter that sometimes there’s a little bit of fluctuation or a little bit of slight tolerance,” Al Habtoor said.