Quote:
Originally Posted by DAYFox
Hi at all
I just wanted to know if someone else has also invested in that project? Here the details:
Project: Ontario Tower
Region: BusinessBay
Developer: RosehomesInvestment / Dubai Continental Group of Companies
Webseite: rosehomes.ae
rosehomes.ae/ontario
The developer is quite new and they have one additional project in Sharjah. Construction in BusinessBay is well underway. I bought an Office as well as a 2Bed Residential Unit in there both on 14th floor.
The location of the tower is exellent i would say; right at the entrance of business bay and a metro station shall be there too. What do you say about this project? And what do you say is currently the minimum sqfeet price a developer has to charge for residential and office units in order to cover costs at least? Last but not least: What do you think will be the minimum sqfeet rent per year i can expect to charge upon completion in businessbay for first office unit and second residential unit?
Waiting for your replies!
Thanks in advance!
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Day Fox,
Hi, was out of town and just got back.
All the developers in this market are new until they deliver the first project. At this point it's difficult to distinguish between good and bad, the grain & the chaff.
Any body paying less than Dhs 1800 psf is bound to make money in Business Bay when equating to the rentals of Dhs 250 psf.
Ontario tower occupies an important place and should do well. I hope the entrances for office and residential sections are seperate. I have seen instances where kids play in the lobby area, not a good sight for a prestigous tower.
This is purely my opinion and I could be dead wrong.
The residential should do better than the commercial. You would be looking at Managers occupying the residential inviting a premium. A nice deal to stay and work in the same building.
The projected rents for Business Bay are between Dhs 200 to Dhs 250. Might be higher due to the proximity to the Metro.
Regarding the minimum the developer has to charge for covering costs is not known. Probably a 30 to 50% profit would justify the trouble taken.
My sincere advise is you are sitting on a gold mine, keep it and look forward to early retirement.
Regards
Roshan