Nshama, a builder of affordable homes, says you can get out of the rental trap by investing in Town Square

What bigger vote of confidence can buyers get than knowing that the CEO and COO of a development company have also purchased homes in an under-construction community and will move in with the rest of them. That's the case in Nshama's flagship project, the Town Square, where CEO Fred Durie and COO Abubakr Sidahmed have invested in a townhouse each.
Nshama was one of the first private developers in Dubai to hop on to the affordable housing bandwagon last year. Their Zahra and Hayat townhouses, where a three-bedroom townhome is available for less than Dh1 million, is completely sold out now. For those of you looking to get out of the rental trap in Dubai and dreaming to be a first-time home owner, hurry up, since there are a few apartments still up for sale.
Nshama launched the Zahra, Safi and Jenna apartments at affordable price points. Consider this: A studio will only cost you around Dh350,000, a one-bedroom apartment comes at Dh500,000 while two-bed and three-bed units are all priced below Dh1 million.
"Our rates are better, say around 20 to 30 per cent cheaper, than all our competitors," says Durie, who was earlier the CEO of Emaar International.
The developer is offering a 70:30 payment scheme, where 70 per cent of the sales price is paid during construction and 30 per cent at handover. Nshama has a tie-up with Noor Bank to facilitate mortgages.
A mix of investors and end users have purchased the units. "The buyers of townhouses are predominantly end users while people see apartments as a good investment option. Over half of our buyers are UAE nationals, followed by those from Saudi Arabia, India, the UK and Europe," adds Durie.
Target clientele
"We are trying to cater to the middle income segment. We want tenants to be able to buy for the same rent that they are paying now. We cater to the Dh15,000 to Dh30,000 income bracket," Durie informs.
The 31 million square feet community will be anchored by a central square, the size of 16 football fields, which will be surrounded by 350 shops, restaurants, cafes, a carousel and shaded public plaza. Pre-leasing for the shops will begin next year and tenants can move in for fit-outs at the end of 2017. A third of the central square will open in early 2019.
The square will also host a Vida Town Square Dubai boutique hotel and serviced residences, a Reel Cinemas cineplex and open-air cinema and Emaar's Njoi entertainment facility for children. These are, however, scheduled to open in a future phase.
Construction is in full swing for the Zahra and Hayat townhouses. Zahra townhouses will be handed over on October 1, 2017 while the Hayat townhouses will be delivered to owners on December 2017.
"Beaver Gulf Group is scheduled to finish construction four to five months ahead of the handover date. Infrastructure work is ongoing for all deep and shallow services. Binladin Contracting Group is handling the infrastructure work," says Durie. Meanwhile, United Engineering Construction are building the Zahra and Safi apartment blocks in Town Square. These will be handed over at the end of 2017.
Active lifestyle
Other facilities in Town Square will include extensive walking and cycling trails, a connection to the Dubai Cycle Track on Al Qudra Road, a proposed Metro line, Metro station and the Etihad Rail. Nshama is already in talks with four to five school operators and healthcare clinics.
"The schools won't be rather expensive. We will be announcing the first partnership very soon. We also have clinics and polyclinics earmarked around the central square in the first phase," the CEO adds.
The developer plans to have some retail elements in place when residents move in by early 2018. The apartment complexes will have retail outlets, convenience shopping and other stores. A filling station will also be constructed. The entire 750-acre Town Square will be built in around eight to 10 years. Commercial space will come a bit later once a community is established.
Nshama also plans to lease out apartments at affordable rates. "We have 1,000 apartments under construction which will be leased. We also plan to have another 1,000 apartments under construction in the next couple of months and possibly another 1,000 will come later in the year. We may release more townhouses this year. The designs are ready. We will see how the market is," adds Durie.
No to flipping
The developer has put controls in place to prevent speculators flipping units in order to make a quick profit. Buyers are required to make a 50 per cent down payment before selling a unit. Nshama also limited the number of townhouses people could buy.
Durie observes that 90 per cent of Nshama's future projects will also be targeted at the middle income bracket. "But we will have other plots where the land is much more expensive and there will be higher end units, but still affordable. So, if our competitor is selling at say Dh1,500 a square foot, we will be selling a few hundreds cheaper but at the same quality."
Unperturbed by the current slowdown in the Dubai property market, Durie says the affordable housing sector is less affected since it caters to a wider, yet untapped target audience. "The Dubai market goes up and down. It has done so for the past 10 to 15 years. We are not here to make a quick dirham. We are here for the long haul," affirms Durie.

Formula for success

How did Nshama manage to deliver on its promise of affordable housing?
"We have efficient designs for townhouses and apartments, making optimal utilisation of space. Contractors are using pre-cast construction which is very controllable and gives a quality finish. We have negotiated with contractors to get a good price so we can pass it onto customers. Also, since we are building 3,000 townhouses and 18,000 apartments, we can leverage on the quantities while buying, say AC units, doors, windows, tiles, etc.," informs Fred Durie, CEO of Nshama.
deepthi@khaleejtimes.com 

Construction work in full swing on the townhouses and apartments in Nshama's Town Square project in Dubai.

Construction work in full swing on the townhouses and apartments in Nshama's Town Square project in Dubai.

Construction work in full swing on the townhouses and apartments in Nshama's Town Square project in Dubai.