April 14 (Bloomberg) -- Emaar Properties PJSC sold more than 188 homes at a project to be built in Dubai amid long lines of potential customers after the developer offered properties at almost half the price of homes in nearby neighborhoods.
The developer of the world’s tallest tower offered the townhouses for about 550 dirhams ($150) a square foot, said Rami Abi Faraj, a manager at Dubai-based broker Better Homes. Properties in Arabian Ranches, near where the townhouses will be built, are selling at more than 1,000 dirhams a square foot, he said. Emaar didn’t immediately respond to questions about prices at Mira, where homes will be ready for occupation in 2016.
“These were amazing homes at very good pricing,” said Abi Faraj, who attended the start of sales yesterday. “They are affordable pricewise but very beautiful, and Emaar could be offering those prices to start the project.”
The scenes of long lines at Emaar’s sales center were reminiscent of those rampant in Dubai before the property crash in 2008 wiped 65 percent off home values as speculative demand dried up. About 40,000 homes are scheduled for completion in Dubai over the next two years, or 11 percent of existing supply, Jones Lang LaSalle Inc. said in a report today.
This year, 28,000 homes are expected to hit the market including 29 Boulevard towers in Downtown, Balqis Residencies on The Palm, the Centrium Project in IPMZ as well as Silicon Gate in Dubai Silicon Oasis.
Away From Center
“Most of the upcoming residential supply will be located outside of central Dubai in areas to the south and east of the city,” Jones Lang LaSalle said. The largest proportion of future stock from 2013 to 2015 will be delivered in Dubailand, Business Bay and Dubai Sports City, according to the report.
Local media reported that police were called to control the crowd after Emaar offered the Mira homes on a first-come, first-served basis. Some brokers and investors paid construction workers to camp in the queue 48 hours before the sale.
Mira is the first phase of a development known as Reem, which is to include schools, shops, parks, a cinema and an amphitheater among its attractions, according to the developer.
Emaar informed buyers who had arrived early that the sales would commence on Saturday morning and it had to delay the start due to the crowds, the developer said in an e-mailed statement today. “We worked with the concerned authorities to manage the crowd, and we regret the inconvenience caused to investors due to the unprecedented rush.”
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