Costs double at Emirati wellness island but nearly half of units sold
- SHA Emirates focuses on wellness
- Hotel and apartments from AED9m
- Infrastructure plan key to success
Selling multi-million-dirham homes on non-prime land in the UAE might seem a bold bet.
Yet the operator of Abu Dhabi’s upcoming wellness island told AGBI almost half its stock has been sold since the project relaunched in April last year.
With transport and wider infrastructure plans emerging as central to the area’s potential, the wager looks like it could pay off.
SHA Emirates, set in Al Jurf between Abu Dhabi and Dubai, offers apartments from AED9 million ($2.5 million) and villas reaching AED130 million, alongside a hotel.
“We are already close to 50 percent of sales. But what we want to make sure is not selling fast, but selling to the right audience,” brand co-founder Alejandro Bataller said.
More niche than a typical hotel brand, SHA focuses on wellness, meaning personalised stays are based around medical assessments, weight loss programmes, detoxing and, it claims, increasing one’s lifespan.
SHA Wellness Clinic was founded in 2008 in Spain with its first clinic near Alicante, on the Mediterranean coast. Following an opening in Mexico, it announced a project in the UAE with a living component in mid-2019.
Supplied/SHA Wellness
The project stalled because of the Covid-19 pandemic but relaunched last year with a 2027 completion date.
In total, it will have 137 residences and 110 hotel suites, built entirely on a man-made island backed by Abu Dhabi Capital Group’s development firm Imkan.
“We are seeing a big mix, Emiratis, Saudis, Ukrainians, Russians, we’ve seen some Germans, some British, even some Americans,” Bataller said of those who have bought into the development.
Bataller explained that Imkan has fully funded the project, something uncommon among off-plan schemes: “The financial development does not depend on sales.”
Typically, developers will recoup their development costs via off-plan sales.
This is becoming increasingly the case for hospitality projects as well, as AGBI reported earlier this week.
The original quoted cost of SHA Emirates – $160 million – has swollen. “The total investment is [now] much higher than that because of building the island from scratch. I don’t have the exact number to give you, but it’s at least double now.”
SHA Emirates will also generate recurring revenue from its hotel suites. Bataller said he expects “around” 50 percent occupancy when the hotel first opens. The UAE’s average hotel occupancy this year is 79 percent but it’s common for new hotels to build up their base over time.
“The staycation market is going to be strong,” Bataller said. “We’re going to attract Europeans, Indians [and] Russians.”
In pricing terms, he estimated the average daily rate at €2,500, or AED10,700.
Further reading:
- Six resorts in Saudi’s Amaala Triple Bay to open shortly
- Healthy prognosis for Turkish medical tourism
- Property bonanza predicted as Etihad Rail network takes shape
The area where the project is situated has begun to benefit from a modest but meaningful increase in development. Alongside SHA Emirates, ADQ and ORA Developers are pressing ahead with Bayn – meaning “between” in Arabic – a new community positioned midway between Dubai and Abu Dhabi. Here, townhouses start at a far more accessible AED2.7 million.
Bayn, next to Al Jurf, sits in a naturally advantageous position.
The Etihad Rail project, a high-speed line between Dubai and Abu Dhabi, is set to welcome passengers next year and upcoming airport expansion by the start of next decade will further boost the area’s connectivity.
A passenger station for the railway is expected at DWC airport and Jebel Ali, the latter just under 20 minutes from Bayn. Large developments such as Palm Jebel Ali and Dubai South are also rising nearby.
Bataller explained that Al Jurf was always the plan for the location: “When we arrived [in the UAE], they [Imkan] gave us different sites in Al Jurf. One was by [a] palace. That was probably the most prestigious location. But we chose the island, as long as they built a bridge to connect it. You are connected to the mainland, but it’s also more exclusive.”
You May Also Like
Crossmint Partners with MoneyGram for USDC Remittances in Colombia
Why Peter Brandt Says The US Crypto Bill Won’t Be A Game-Changer
