Schon Properties, a major developer of quality properties in Dubai, announced that it has sold out i3 – the first phase of its mega hospitality project, iSuites at Dubai Investment Park, close to Dubai South, and the Dubai Expo site.
i3 is a complex of three mid-rise buildings, offering 292 high-end fully furnished hotel apartments with a total built-up area of over 220,000 square feet – that have been snapped up by international investors further expanding Schon’s reach and Dubai’s appeal beyond the legacy source markets of the Middle East and Indian subcontinent. Today both sub-Saharan Africa and the Far East are established and growing source markets with close to 30% of total sales from these regions.
Dubai is an increasingly attractive tourist destination, supported by continued investment in the tourism infrastructure, and hosting of large scale global events. The growth in visitor numbers is driving further investment in hotel accommodation expansion. The number of visitors is expected to grow from 15 million in 2016 to 25 million in 2020.
“Dubai is today a global tourist destination, with infrastructure and attractions that are second to none. With the relentless ambition it’s known for, under the guidance of our wise rulers, and associated growth potential, the savvy investor is seeking to participate in this success story,” Danial Schon, President of Schon Properties, said.
iSuites exceptional location, adjacent to the Dubai EXPO 2020, a short drive to the Al Maktoum Airport transportation hub as well as Dubai Parks & Resorts attractions, and served by a station on the planned Dubai metro extension has attracted many international hotel operators looking to establish a presence for their brands. Investing in a hotel apartment managed by the top international operators has been an added benefit to investors seeking superior returns.
The entire complex includes 21 mid-rise buildings – each having 8 floors not including basement floors – around a manmade swimmable lagoon, the first of its kind in Dubai and a retail promenade offering visitors a plethora of shopping, entertainment and dining options.
“Although individual investment in hotel apartments by retail investors is a novel phenomenon, we are pleased to say that we have sold out i3 – the first phase of iSuites, within a short period of time,” Noorul Asif, Chief Operating Officer of Schon Properties.
Long known for its ultra-luxury developments, Dubai recognises that the next leg of growth is going to come from the affordable segment as it appeals to wider audiences, offers more choice at multiple price points to its visitors and thus structurally protect the sector against cyclical fluctuations at home and abroad.
“Positioning iSuites at 4 stars, addresses a gap in the market today. Tourists, especially families are looking for properties in convenient locations, with superior amenities at affordable prices. iSuites delivers and investors recognise that. With i3 sold out, investors are actively registering ahead of our next launch,” Asif said.
Schon Properties, one of the top private real estate developers in the UAE, has an 8 million square feet development portfolio valued at Dh7 billion. A vertically integrated company with over 400 staff, Schon has successfully delivered over 1.6 million square feet of developments to more than 3,000 customers (till October 2016). Schon was the first company in Dubai to launch affordable housing targeting mid-market buyers, and the first company to introduce a post-handover payment plan.
Schon’s Vision 2020 focuses on sustainable income models via hospitality investments next to Expo 2020, shifting focus from sales to retaining assets for sustainable income.
iSuites is a 21 building project (2B+G+8), comprising 2,550 luxurious hotel apartments, 52 restaurants and cafes, and 125,000 square feet shopping mall called the Laguna Centrale Mall. The project aims to serve the shortage of 4-star hotel rooms close to the Expo 2020, Al Maktoum Airport, and Dubai Parks and Resorts. iSuites‘ total constructible area is upwards of 2.6 million square feet.