Palm Villa Owners Can Buy Land From Nakheel To Extend Their GardensFriday, June 08, 2012
According to sources, Nakheel is looking forward to boost its revenue. For this very purpose, it is providing an option to the villa owners on Palm Jumeirah to buy additional land outside their villas. The land which Nakheel is offering makes a strip that is adjacent to the steps leading down to the beach. For this land, Nakheel is charging AED 600 per sq ft.
The residents of Palm Jumeirah have disclosed that property owners beside the public footpath to the beach have also been given the option of buying a land and extend their gardens against the same price. One of the residents also said that if you have a garden in the villa, it is an opportunity to double the size of the garden.
Residents also claimed that Nakheel has given this purchase offer after several months of issuing warning to homeowners who were illegally extending their gardens by decking. One of the residents said that many villa owners put out decking that went across the terracing which Nakheel provided but this year Nakheel has started to push them to take it down. Nakheel is offering them to buy the area and extend the gardens in a way Nakheel wants them to do.
Nakheel also communicated to the owners in the letters that those who buy the land would be given permission to add soft and hard landscaping, erect swimming pools and add various outdoor structures and features in the gardens. In order to cope up with the shortage of funding as a result of global credit crises, gulf developers are looking for ways to fix their funding issues.
Nakheel was hit hard in global credit crises which led it to write down the value of its real estate by US$ 21 bn, since the property prices in Dubai fell by over 65%. Now Nakheel is trying to boost its income from shopping malls and rentals which used to earn its income by selling off-plan property. Nakheel has launched several projects in the recent months including Palm Views East and West and Palm Residence.
Nakheel has also declared that during the first quarter of 2012, the firm has earned a profit because it cut down its cost and handed over several properties. It declared a profit of AED 362 m. In 2011, it reported a loss of 36 m for the same period.