The real estate market in Dubai has seen exponential growth over the past couple of decades. As one of the most popular emirates in the UAE, Dubai draws investors from all over the world who are looking to cash in on this thriving market. One of the newest residential developments that has been garnering a lot of interest from potential buyers and investors is Tilal Al Ghaf. But is investing in Tilal Al Ghaf really a wise move for your money?
The Developer Behind Tilal Al Ghaf
The first thing we need to look at when considering any new development in Dubai is the developer behind it. Tilal Al Ghaf is a project by Majid Al Futtaim Properties, one of the leading real estate developers in the UAE. Majid Al Futtaim holds an impressive portfolio of successful high-profile developments like Mall of the Emirates, City Centre malls, hotels, mixed-use communities and more. They have delivered a number of projects on time and as per international standards.
Given their strong track record and reputation in UAE’s real estate sector, investing in one of Majid Al Futtaim’s projects certainly inspires confidence in buyers and investors. The fact that such an established developer is behind Tilal Al Ghaf is definitely a point in this community’s favor in terms of its investment potential.
Location of Tilal Al Ghaf
Location is one of the foremost factors that determine the value and returns of any property in Dubai. So what about Tilal Al Ghaf? Well, this new development enjoys a rather strategic location, being close to central Dubai as well as the Expo 2020 site.
Tilal Al Ghaf is located along Mohammad bin Zayed Road in New Dubai. This connects it to major road networks like Emirates Road that enables easy access to Downtown Dubai and key areas like Dubai Marina. The Dubai Mall and Burj Khalifa are just a 20-minute drive away.
The Expo 2020 Dubai site is also in close proximity, which played a key role in drawing interest for properties in this area during the 6-month long Expo that concluded in March 2022. The footfall and development Expo sparked in Dubai is expected to create a long-lasting positive impact on the city’s real estate market. Tilal Al Ghaf stands to gain from its location near Expo.
In addition to its connectivity, the community is also close to main amenities like shopping malls, hospitals, schools, retail outlets etc. This makes it a convenient area to live in for families and residents. Overall, the location works heavily in Tilal Al Ghaf’s favor in terms of investment appeal.
Amenities at Tilal Al Ghaf
An important determiner of a property’s value and investment potential is also the kind of amenities it offers residents within the community. Tilal Al Ghaf checks this box well too, providing extensive lifestyle facilities that add to its attractiveness for end-users.
As per the plans shared by the developers, Tilal Al Ghaf will house over 94,000 sq. ft of retail space offering hypermarkets, restaurants, cafes, sports academies, nurseries and other convenience outlets for residents’ daily needs. Recreational amenities within the development will span 246,000 sq. ft that includes swimming pools, gyms, sports grounds, parks, walking trails etc.
There is also the 18-hole Tilal Al Ghaf championship golf course designed by professional golfer Ernie Els. For families with children, there are provisions for schools being built within the community by leading educational institutions like GEMS.
With such extensive amenities promoting convenience, luxury, recreation and holistic living, Tilal Al Ghaf positions itself well to draw interest from property buyers - thereby benefiting investors through better prospects for capital appreciation and rental returns.
Mix of Properties at Tilal Al Ghaf
Tilal Al Ghaf features a diverse mix of residential unit types to cater to different customer segments including:
Apartments: Studio, 1BR, 2BR and 3BR options available
Townhouses: 3 to 5-bed options from 2,900 to 7,100+ sq. ft. sizes
Villas: 4 to 6-bed options from 6,300 to 11,500+ sq. ft. sizes
This variety in properties allows investors to choose based on their budget and target customer profile. The apartments cater to young professionals and smaller families who make up a significant portion of Dubai’s tenant demographic. The townhouses and premium villas target more affluent expat families.
Additionally, the properties incorporate Arabic architectural elements into a contemporary design giving them a unique appeal. Investors can expect strong interest from end-users due to the holistic living experience and exclusivity the different unit types offer at Tilal Al Ghaf.
Payment Plans at Tilal Al Ghaf
Ease of payment often acts as a catalyst for sales in Dubai’s property market. Tilal Al Ghaf offers flexible long-term payment plans over 1 to 4 years to ensure affordability for a wider range of buyers. This allows you to secure the property by paying only 25% to 60% of the total value upfront while the rest can be paid over installments.
Such relaxed payment options draw greater interest from end-users to actually purchase properties at Tilal Al Ghaf. This directly translates into higher sales volumes and potential for price growth - creating a win-win for developers as well as investors in the community. The payment flexibility adds to Tilal Al Ghaf’s attractiveness for investors.
Factors Supporting Price Growth
There are certain factors that collectively create a strong case for steady capital appreciation and rental returns from properties at Tilal Al Ghaf:
Increasing population and job growth in Dubai necessitating quality housing
Government initiatives like residency visas for property owners and flexible working policies attracting more expats
Post-Expo infrastructure projects sparking development in surrounding areas
Proactive government regulations to prevent oversupply in the market
High ROI potential compared to mature communities in central Dubai areas
These factors point towards sustainable demand from genuine end-users. For investors, this implies healthy occupancy rates and upward pressure on rents and property values at Tilal Al Ghaf in the coming years.
Target Customer Profile
The developer aims to target a specific customer demographic that includes:
Young executives working in New Dubai’s commercial district
Families with school-going children studying in nearby educational institutes
Expats moving to Dubai seeking an active community with golf course and other sports facilities
Investors wanting to cash in on the promising outlook of Dubai’s real estate market
Based on preferences of the target groups above, Tilal Al Ghaf certainly ticks all the right boxes in terms of location, amenities, lifestyle, accessibility and property mix. This aligns well with the needs of intended property buyers – be it end-users or investors.
Developer Credibility
In emerging markets like Dubai, developer’s credibility holds high significance where projects are often launched in early stages purely based on plans. There have been instances in the past where weak developers failed to deliver on tall promises - leaving investors as well as end-users in the lurch.
When assessing investment-worthiness of any new launch, the developer’s reputation and prior track record gives confidence in their ability to deliver. As highlighted earlier, Majid Al Futtaim Properties has an impeccable reputation, having consistently delivered mega projects to highest standards.
The fact that a market leader like Majid Al Futtaim Properties is helming Tilal Al Ghaf greatly inspires trust in the project being completed on schedule and as per promised specifications. This reliability hugely sways purchase decisions favorably - raising investor sentiment for the project.
A Golf Course Community
An interesting aspect about Tilal Al Ghaf is that it is positioned as Dubai’s first golf course residential development. The golf course designed by pro golfer Ernie Els PGA champion lend prestige value. Golf communities appeal strongly to some expat customer demographics who view access to golf amenities as a lifestyle privilege.
Dubai has a limited number of golf communities, with most centered along the high-end Emirates Hills area. Given the rising urban sprawl, access to such golf-integrated communities is shrinking. Tilal Al Ghaf fills this supply gap.
For investors, such niche community concepts have relatively inelastic demand amid a growing target demographic. What also helps is that surrounding open spaces cannot be repurposed for competing developments in the future. Rarity value further accelerates price premiums. So the golf course aspect could strongly work in Tilal Al Ghaf’s favor in achieving stable capital growth over the long run.
Handover Schedule
The timely completion and handover of units also has a critical impact on investor returns. Construction work on Tilal Al Ghaf has been progressing as per schedule since its launch.
As per the latest construction status released by developers Majid Al Futtaim Properties:
Enabling works are close to completion
Main construction contract has been awarded
Handover of first homes scheduled for Q2 2024
With around 75% of the project area being open green spaces or low density villas, progress of enabling works is the true mark of construction activity. The current status indicates the developer’s commitment in preparatory activities prior to vertical development, raising confidence in timely handovers.
Besides enabling works being on track, awarding the main construction contract is another positive signal. This allows the appointed contractor to mobilize resources in advance for vertical progress on residential plots or apartment towers. Investors can thus expect project completion in alignment with timelines and ready inventory by 2024 for moving in or leasing out.
Conclusion
So, in summary - YES, investing in Tilal Al Ghaf checks all the boxes to merit consideration for your portfolio based on its developer's pedigree, strategic location, unique concept, holistic facilities and Dubai’s currently upbeat property market outlook. The projected returns over a medium-term investment horizon make it an attractive option worth exploring in 2023.
