Nakheel Properties Review of the Developer

Developers Nakheel Properties Review of the Developer
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~13 min
10/04/2023
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Introduction

Nakheel Properties, a world-leading developer headquartered in Dubai, has redefined the city's skyline and beyond with its iconic projects. With a portfolio that spans from residential to retail, entertainment to hospitality, Nakheel is at the forefront of innovative development in the UAE. Their commitment to creating breathtaking properties and entertainment destinations, such as Dragon Mart and Ibn Battuta Mall, has made them an important part of Dubai's growth and a go-to choice for customers seeking quality and excellence in construction.

Nakheel's dedication to customer care and providing top-notch facilities is evident in their projects, including the Jumeirah Islands and International City. As one of Dubai's leading companies in the construction and real estate sector, Nakheel continues to shape the future of the city, offering a range of properties that cater to the diverse needs of residents and businesses.

History

Nakheel Properties has a rich history that traces its roots back to its establishment in 2003 as a subsidiary of Dubai World, a state-owned enterprise. Initially, Nakheel was positioned as a significant player in the real estate and development sector in the United Arab Emirates.

In 2009, the company faced legal challenges related to a sukuk (Arabian financial certificates), which was noted as the largest-ever sukuk at the time. This financial issue led to a restructuring process that spanned several years, with Sultan Ahmed bin Sulayem being replaced as chairman of Dubai World in 2010. Nakheel embarked on the path of debt restructuring in 2011, with significant efforts to address its financial obligations.

Notably, in 2013, the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, injected substantial funding of US$898 million into Nakheel. This injection of capital marked a turning point, enabling the company to resume major projects, including those on the iconic Palm Jumeirah. In 2017, Nakheel achieved impressive financial results, with a net profit of $1 billion and a substantial number of units completed and under construction.

Average Prices for Properties

Certainly, the average prices for properties developed by Nakheel Properties can indeed vary significantly based on several factors including the type of real estate, number of bedrooms, location, and condition. Below, here is a general overview of average property prices in different categories within Nakheel's projects:

Residential Apartments:

  • 1-bedroom apartments: AED 2,718,800 to AED 4,200,000

  • 2-bedroom apartments: AED 6,900,000 to AED 21,000,000

  • 3-bedroom apartments: AED 8,600,000 to AED 32,000,000

  • 4 to 6-bedroom apartments: AED 11,700,000 to AED 107,000,000

Please note that these price ranges are indicative and can vary based on the specific location of the property, its condition, and any unique features or amenities it may offer.

Nakheel Properties has a diverse portfolio of projects, each with its own pricing structure. Therefore, potential buyers or investors should contact Nakheel directly or consult with a real estate agent for the most up-to-date and specific pricing information for the property of interest.

Key Projects

Palm Islands

Palm Jumeirah is the first and most famous of the Palm Islands. It is a stunning artificial archipelago resembling a palm tree within a circle. Construction began in 2001 and was financed primarily by Dubai's income from petroleum. By 2009, 28 hotels had opened on the site, including the Atlantis, which is the largest hotel in Palm Jumeirah. This island is home to numerous private residences and hotels and has significantly impacted Dubai's luxury real estate market.

Another impressive project by Nakheel, Palm Jebel Ali, features a palm tree that is 50% larger than Palm Jumeirah. The island also includes a crescent shape with boardwalks that encircle the "fronds" of the "palm," spelling out an Arabic poem written by Sheikh Mohammed bin Rashid Al Maktoum. Construction on this island began in 2001.

Originally conceived as a part of the Palm Islands project, the Deira Islands are four undeveloped artificial islands off the coast of Deira, Dubai. These islands have seen limited development due to the financial crisis of 2007-2008. Initially, the project was known as Palm Deira and was intended to be the largest palm island of the three, approximately eight times the size of Palm Jumeirah. While development has been slow, the potential for these islands remains significant.

Nakheel Properties' Palm Islands have reshaped Dubai's coastline and contributed to the city's status as a global luxury and tourism destination. These iconic developments continue to be a testament to Nakheel's commitment to innovation and excellence in the real estate industry.

Dubai International City

Dubai International City is a unique and culturally inspired urban development situated in the Al Warsan region of Dubai, United Arab Emirates. This expansive project, covering a vast area of 8 square kilometers, has drawn its inspiration from the rich traditions of the Middle East and from traditional Middle Eastern carpets.

At the heart of Dubai International City is a thriving community designed to accommodate over 60,000 residents, offering a range of residential options including studio and one-bedroom apartments. The development also has a distinctive architectural feature, drawing inspiration from the majestic Forbidden City of Beijing, China.

One of the notable attractions within Dubai International City is the impressive shopping mall, which covers an expansive area of 240,000 square meters and offers parking facilities for up to 2,000 cars. Developed by Nakheel Properties, this mall is known as DragonMart, and it serves as a hub for wholesale purchases of Chinese products. The success of DragonMart led to the construction of Dragon Mart 2, an adjacent facility with a sprawling 175,000 square meters of retail space and parking for 4,500 vehicles. This expansion was completed in December 2015, further enhancing the appeal of Dubai International City as a dynamic and culturally diverse destination for both residents and visitors.

Ibn Battuta Mall

Ibn Battuta Mall, a remarkable shopping destination in Dubai, stands as a testament to grandeur and thematic splendor. Including approximately 275 shops, 50 restaurants, and an impressive 4,500 parking spaces, this mall covers a sprawling total area of 521,000 square meters (5,610,000 square feet). What makes Ibn Battuta Mall a truly unique shopping center that combines shopping with an exciting journey through history. Ibn Battuta Mall is divided into separate sections, each designed according to the theme of the country explored by the famous traveler and merchant, Ibn Battuta.

Ibn Battuta Mall offers an extensive shopping experience and a range of activities catering to diverse interests. Visitors can enjoy attractions such as a trampoline park, captivating light exhibitions, and a Carrefour hypermarket for their convenience. For movie enthusiasts, the mall features a remarkable 21-screen cinema theater operated by Novo Cinemas, ensuring that entertainment options are as diverse as the shopping choices within this remarkable retail and leisure destination.

The World

The World Islands, an ambitious project developed by Nakheel Properties, stands as a remarkable feat of engineering and imagination. Located in the Persian Gulf, just off the coast of Dubai, these islands form an archipelago meticulously crafted in the shape of a world map. The visionary behind this grand endeavor was Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai, and the construction was executed by two Dutch specialist companies, Van Oord and Boskalis, the same entities responsible for the creation of the Palm Jumeirah.

The construction of these 300 islands commenced in 2003 but faced an interruption due to the global financial crisis of 2007–2008. While 60% of the islands were sold to private contractors in 2008, the development of most of them had not yet commenced as of that time. Lebanon Island became the first to be developed and commercially utilized, hosting private corporate events and public parties. However, it wasn't until later that further progress was made.

In 2014, the Kleindienst Group launched "The Heart of Europe" project, renewed development efforts on these islands, with a particular focus on Europe, Sweden, and Germany. These islands vary in size from 14,000 to 42,000 square meters (1,4 to 4,2 hectares) and are connected by an extensive network of waterways. The project's overall development costs were estimated at a staggering $13 billion CAD in 2005, reflecting the magnitude of this awe-inspiring endeavor.

The Gardens

The Gardens community, situated in the northeastern part of Jebel Ali Village, holds a unique historical significance in Dubai's urban development. The original Jebel Ali Village, built in 1977, was primarily established to provide accommodation for the staff of construction contractors working in the region. During this era, Sheikh Rashid bin Saeed Al Maktoum had envisioned Jebel Ali as a thriving industrial area, complete with its own airport (now Al Maktoum International Airport), port (now the Port of Jebel Ali), and township (now known as Jebel Ali). The design of Jebel Ali Village was reminiscent of a British-style garden city and was realized as a project led by Sir William Halcrow and Partners.

Subsequently, Nakheel Properties undertook further development in the area, and in August 2001, the first residents began to move into properties in The Gardens. This development was a significant addition to Dubai's urban landscape, providing space for up to 10,000 residents in a meticulously landscaped and well-planned community. The Gardens represent a blend of history and modern living, offering residents a comfortable and picturesque environment within the larger context of Dubai's rapid urban expansion.

Awards

Nakheel Properties has received numerous awards and accolades, recognizing its excellence in various aspects of the real estate industry and its commitment to employee happiness and development. Here are some of the notable awards Nakheel has won:

  1. Best Brand Evolution (Corporate). Nakheel received the Gold award for Best Brand Evolution (Corporate), showcasing its dedication to evolving its corporate brand identity over time.

  2. Best Visual Identity from the Property, Construction, and Facilities Management Sector. Nakheel was honored with the Gold Award for Best Visual Identity in this sector, highlighting its outstanding visual branding efforts.

  3. Best Brand Architecture Solution. Nakheel received the Gold award for Best Brand Architecture Solution, underscoring its strategic approach to brand architecture.

  4. Best Use of Typography. Nakheel was recognized with the Silver award for Best Use of Typography, reflecting its creative and effective typography usage in branding.

  5. Best Use of a Visual Property. Nakheel received the Bronze award for Best Use of a Visual Property, showcasing its ability to leverage visual elements in its branding strategies.

  6. Best Creative Strategy. Nakheel was awarded the Bronze for Best Creative Strategy, highlighting its innovative and effective creative approaches in branding and marketing.

  7. Best Induction Program. Nakheel received the Gold award for Best Induction Program, demonstrating its commitment to effectively welcoming and integrating new employees.

  8. Best Employee Driven Business Change. Nakheel was honored with the Gold award for Best Employee Driven Business Change, recognizing its employees' contributions to driving positive change within the organization.

  9. Best Leadership Succession Strategy. Nakheel received the Silver award for Best Leadership Succession Strategy, showcasing its efforts in grooming and nurturing future leaders.

  10. HR Leader of the Year. Nakheel employee Keiran Scott was awarded the Silver for HR Leader of the Year, recognizing outstanding leadership in human resources.

  11. The Rise to Success Award. Nakheel's Ruby Reyes received the Silver award for The Rise to Success, acknowledging her exceptional journey and achievements within the company.

These awards demonstrate Nakheel's dedication to excellence in branding, employee development, and overall corporate performance, making it a prominent and respected player in the real estate industry.

Conclusion

Nakheel Properties stands as a prominent real estate developer in Dubai, known for its visionary projects that have left an indelible mark on the city's skyline. With a diverse portfolio of projects in Dubai, including iconic developments like the Palm Islands, The World Islands, and the vibrant Al Sufouh community, Nakheel has showcased its commitment to innovation, quality, and excellence. The company extends beyond construction, it is also focusing on employee happiness and development, as recognized by numerous awards.

Nakheel's journey, marked by iconic landmarks and a commitment to sustainable growth, continues to shape the future of Dubai's real estate landscape, making it a key player in the region's development. As Nakheel moves forward, its legacy of transforming Dubai's coastline, creating vibrant communities, and offering world-class facilities and amenities is to its purpose to providing exceptional properties and experiences.

With a strong emphasis on customer satisfaction and a dynamic range of projects that cater to diverse needs, Nakheel Properties remains at the forefront of Dubai's real estate sector, setting new standards for innovation and development in the region.

Sources

Nakheel Properties

FAQ

  • 1.

    What are some of Nakheel's most famous projects?

    Nakheel is behind projects like the Palm Islands (Palm Jumeirah, Palm Jebel Ali, and Palm Deira), The World Islands, Dragon City, and many other residential and commercial developments.

  • 2.

    What types of properties does Nakheel offer?

    Nakheel offers a wide range of properties, including apartments, villas, commercial spaces, and retail outlets to cater to different preferences and needs.

  • 3.

    Are Nakheel properties available for rent as well as purchase?

    Yes, Nakheel offers properties for both sale and rent, providing options for those looking to live in or invest in Dubai.

  • 4.

    How long have Nakheel Properties been in operation?

    Nakheel Properties was founded in 2003 as a subsidiary of Dubai World, a state-owned enterprise.

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Update date: 04/11/2024