Nakheel , a real estate developer owned by the Dubai government, has sold two plots of land on the emirate's Palm Jumeirah for 700 million U.A.E. dirhams ($191 million), it said.
Nakheel , which had to restructure debt and put projects on hold following Dubai's property market crash five years ago, sold the hotel plots along the outer edge of the man-made island to an Arab Gulf investor and a local U.A.E. investor, it said in an emailed statement. The plots were sold for AED556 million and AED139 million.
The sales come as Dubai's long-stagnant property market shows signs of revival. Apartment sale prices rose 18% in the first quarter compared to the same period last year, according to an April report from consultancy Jones Lang LaSalle. Nakheel made a AED491 million net profit in the first quarter, up by 36% year-on-year, as sales and revenues surged.
Already this year, developers have announced plans to build new Viceroy and Anantara hotel resorts on the Palm Jumeirah, which is already home to a number of luxury hotels.
Dow Jones Newswires