With pricing at its Dh1 billion Falcon Island development starting at Dh6.2 million and ranging up to Dh15 million, Ras Al Khaimah master-developer Al Hamra is gauging the demand for luxury villas. The early investor response suggests that the developer is doing well.
“We sold the seven-bedroom Dh15 million villa before the second phase release of Falcon Island homes,” said Benoy Kurien, Group CEO of Al Hamra, the builder of the Al Hamra Village and one of the first freehold projects in the country. “There are only a limited number of beachfront villas we are selling, along with those offering canal views.”
With prices starting at Dh1.2 million, the first phase of Falcon Island, which is a part of the larger Al Hamra Village, contained slightly over 170 homes. When those went on sale last year, purchasers were available right away. Investor interest is booming in Ras Al Khaimah’s real estate market, and not just among individual buyers. As part of its efforts to diversify its holdings, Aldar Properties in Abu Dhabi purchased the Al Hamra Mall and a resort in Ras Al Khaimah.
Get started on island infra
The developer expects to start on Falcon Island’s infrastructure by September. “So far, we have spent on creating the beaches, sorted out the filling and firming up of land and will soon award the enabling works contract,” said the CEO. “The villas too will start to be built from middle of September, that’s the plan.
“The schematics have already been finalised, which means we are clear about the number of homes we will have on the island, their floor spaces, etc. The rest – centred on the detailing – is going on. This ambitious development is part of our strategic five-year roadmap, from 2023-27, to drive sustained growth through projects.”
More land on the horizon?
Al Hamra is still evaluating the viability of purchasing additional property given that Al Hamra Village will shortly be fully developed with new projects. The CEO considers purchasing land in the southern portions of the emirate, outside of Al Hamra, in order to build its upcoming hotel or community projects.
There could also be more of the type of deals Al Hamra entered with Aldar in selling the mall. “Investor interest in both our finished assets and greenfield developments remain strong,” said Kurien. “That means we have possibilities to raise fresh funds for new land acquisitions – what that also means is we don’t need an IPO for the next four-five years to tap new capital.”