MAG to redesign, rename Shoumous project in Sharjah
MAG Lifestyle Development said changing market demands had made the business rework its residential Shoumous project in Sharjah
MAG Lifestyle Development (MAG LD) is changing the infrastructure and design of its Shoumous residential project in Sharjah, due to demand for smaller, cheaper villas.
The 2.2km² project, which includes a mix of villas and townhouses, has been renamed Sharjah Garden City.
The chief executive officer of MAG LD, Talal Al Gaddah, told Construction Week that he approved the major redesign of the project “because the market demand has changed”.
“People are now looking for a certain price and a certain size for their home,” he said.
Talal explained that prospective homebuyers in Sharjah wanted to acquire villas or townhouses that had four bedrooms and cost in the region of $326,000 (AED1.2m).
The Shoumous project had been initially designed to have up to five bedrooms, cover 464m², and cost approximately $760,000 (AED2.8m), he explained.
But in order to meet buyer demand for cheaper properties with fewer rooms, Gaddah said MAG LD is adapting the infrastructure and design of the residential complex to meet the demand head on and capture sales.
“If I do each villa for half of the size, we can sell them for [$326,000 or] AED1.2m. If you divide this amount over 12 months, the monthly payment is [approximately $24,000] AED90,000 in rent,” Gaddah said.
A date for delivery of the project has not been set, but Gaddah said he “expects to launch it soon”.
Sharjah Garden City is a joint venture project between MAG LD and Al Batha Real Estate, a subsidiary of the diversified Al Batha Group, which is involved in sectors including engineering, healthcare, manufacturing, and fast-moving consumer goods (FMCG).
Al Batha Real Estate operates primarily in the Emirate of Sharjah. Projects include villas in Al Khan and apartments in Al Waha Tower.
For MG LD, which has ambitions of becoming one of the UAE's biggest real estate developers, the redesign of Sharjah Garden City is just one of several projects under way.
The company will launch two new projects in Dubai's Jumeirah Village Circle, valued at approximately $82m (AED300m).
Two 20-storey residential buildings, called MAG 612 and MAG 614, will be the developer’s first foray in JVC.
The 26,013m² MAG 614 has 223 units, split as 80 studios, 101 one-bedroom, and 42 two-bedroom apartments, plus 261 parking spaces, a swimming pool, and health club.
MAG 612 will have fewer units: 100 one-bedroom and 44 two-bedroom apartments, in addition to 182 parking spaces.
In May, MAG LD issued an infrastructure tender for MAG Eye, a $1.2bn (AED4.7bn) master-planned mixed-use community development in Mohammed Bin Rashid City Meydan District 7 scheduled for delivery in Q3 2020.