Al Jaddaf Plot (69,199 ft²)

mixed use plot in sama al jaddaf g+14

1Senior Real Estate Development Consultant | Dubai

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Executive Summary

This feasibility assesses a 69,199 ft² freehold plot in Al Jaddaf for a G+14 mixed-use scheme (95 % efficiency, 1.5 × BUA). Base-case GDV of AED 945.8 M vs. TDC of AED 647.2 M yields profit of AED 298.5 M (ROI 46.1 %, IRR ≈ 28.8 %). Conservative and optimistic scenarios deliver ROI of 31.5 % and 60.7 %, respectively. Key go-no-go: lock conversion-fee exposure, secure interim-title acceptance, and finalize escrow/legal framework.

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1. Location Analysis

Strategic Position: Western Bur Dubai, waterfront on Dubai Creek, 10 min to Downtown and DXB Airport via Sheikh Zayed/Al Khail Roads.

Infrastructure: Upcoming Etihad Rail station in Al Jaddaf; Urban Tech District (140,000 m² hub) by 2030 oai_citation:0‡bhomes.com.

Connectivity: METRO proximity (Creek Station), arterial road access, DEWA/Etisalat networks.

Demographics: Population ~7,747 (2023), annual growth ~5 % oai_citation:1‡citypopulation.de.

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2. Market Analysis

Off-plan Prices: Median AED 1,850/ft² in Q2-25 (–2 % QoQ) across existing stock oai_citation:2‡dxbinteract.com.

New Launches: Apartments at AED 2,596/ft² (Azizi Creek average) and retail at AED 6,094/ft².

Demand Drivers: Waterfront living, cultural landmarks (Ductac, Opera Park), corporate tenants in nearby Business Bay.

Comparables: Azizi Creek, Binghatti Ivory, Binghatti Avenue trading at AED 1,280–1,790/ft² for secondary stock.

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3. Regulatory Framework

Freehold Conversion
DLD Form F; 30 % fee of valuation (capped) under DLD announcement Jan 2025.

Escrow Law
Law 8 (2007) mandates DLD-regulated escrow for buyer funds.

Building Permits
Dubai Municipality multi-storey approval ~8–12 weeks (concept, technical review, final)

Occupancy Permit
Issued post-construction; valid 4 years. Knowledge Dirham & Innovation Dirham apply dda.gov.ae.

Height & Zoning
G+14 per master plan; setbacks and podium coverage per DDA.

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4. Technical Feasibility

Spec	Value
Plot Area	69,199 ft²
Max. GFA	369,000 ft²
Efficiency	95 %
BUA (× GFA)	1.5 × ⇒ 553,500 ft²
Net Saleable Area	350,550 ft²
Retail Component	3 % ⇒ 10,516.5 ft²
Residential Area	340,033.5 ft²
Parking	1.2 spaces/unit
Geotech	Piled foundations near creek; standard for waterfront sites.

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5. Financial Analysis

5.1 Development Costs

Category	AED
Acquisition	167,681,043
Hard Costs	342,893,250
Soft Costs	136,665,590
TDC	647,239,883

5.2 Revenue & Profit

Segment	Area (ft²)	Psf (AED)	Revenue (AED)
Residential	340,033.5	2,595.83	882,669,160
Retail	10,516.5	6,000.00	63,099,000
Total GDV	350,550	2,696.42	945,768,160

• Developer Profit: 298,528,277
• ROI: 46.1 %
• IRR: ≈ 28.8 % over 25 months

5.3 Sensitivity

Scenario	Psf Resi/Retail	GDV (AED)	Profit (AED)	ROI
Conservative	2,336 / 5,400	851,191,344	203,951,461	31.5 %
Base Case	2,596 / 6,000	945,768,160	298,528,278	46.1 %
Optimistic	2,856 / 6,600	1,040,344,976	393,105,096	60.7 %

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6. Risk Assessment

Risk	Severity	Mitigation
Fee revision ↑ (30 % cap)	Medium	Fee-cap clause; dual-cheque lodging
Permit delays	Medium	DM approval timeline tracked; penalty clause
Market price volatility	Medium	Sensitivity; conservative underwriting
Cost inflation	Low–Med	Contingency 5 %; fixed‐price contracts
Interim title acceptance	Low	Written master-developer confirmation

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7. Implementation Timeline

Milestone	Duration
Pre-dev & Approvals	0–4 months
Construction	5–22 months
Sales Launch	18 months
Handover	23–30 months

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8. Recommendations

• Proceed on base case: strong returns, manageable risks.
• Lock conversion-fee exposure with capped valuation certificate.
• Finalize escrow & legal: include fee-cap, NOC-timelines, default interest, long-stop dates.
• Secure master-developer sign-off for interim title permit usage.
• Mobilize funding: commit equity AED 338.9 M; explore senior debt for 50 % of hard costs.

This analysis underpins a robust investment decision: Al Jaddaf’s growth trajectory, combined with compelling financial returns, supports advancing to SPA negotiation and permit filings.