Jumeirah Golf Estates on the growth of golf in Dubai

Jumeirah Golf Estates is home to two of the region’s best golf courses, with rolling green fairways seamlessly intertwined with a luxury residential community. Their vision is to promote some fantastic fairways in the region. Abdulaziz Bukhatir, Executive Director, Jumeirah Golf Estates talks to Anand Datla about how their plans are rolling out.

What is the vision for Jumeirah Golf Estates?

Our vision is to be the number one residential and leisure destination that always cares for the community.  With this in mind Jumeirah Golf Estates is driven by the vision to provide an unforgettable experience for golfers at its two world-class Greg Norman-designed golf courses, Fire & Earth, and residents seeking quality, luxury homes and a peaceful setting within easy reach of Dubai’s top attractions.

Golf is growing very well in the region and Dubai has attracted top talent year after year. How do you see JGE play a role in sustaining that growth?

A report published by Deloitte revealed that the direct and indirect economic impact of golf in Dubai is a staggering $131m per annum. The comprehensive study also revealed the total gross expenditure on golf in the emirate is $270m, a quarter of total sports expenditure, while the estimated economic impact of golf tourism in Dubai is $38m – proving that golf can be considered as a major growth catalyst for Dubai’s sports industry as a whole.

In gross expenditure terms (measuring all expenditure relating to the event regardless of source), golf events generated an estimated $92m of total sports expenditure of $1.1b^[1].

As host venue of the DP World Tour Championship, we have a front row view to the large-scale impact major golf events are having in Dubai and the UAE. As the sports industry continues to grow – with golf accounting for a significant portion of the sector – we see major potential for Jumeirah Golf Estates, as a leading residential golf community, to leverage and maximize Dubai’s reputation as a global sporting destination of choice.

With a large share of sports’ gross expenditure attributed to golf-related spend, we foresee continued strong interest in our first-class residential, lifestyle and golf proposition from a market, which has become increasingly interested in the sport and its associated offerings.

Can you share some information about what Jumeirah Golf Estates offers in terms of golf for enthusiasts at the one end and professionals on the other hand?

Jumeirah Golf Estates is home to European Tour Performance Institute (ETPI), one of the finest golf instructional facilities offering an unrivalled teaching and practice experience, giving professional and amateur golfers alike, the opportunity to “rub shoulders” with the best players in the game. The facility features state-of-the-art swing analysis studios, a full gym with the very best in fitness equipment and personal trainers along with well being services such as nutritional consultancy and sports massage.

Every year, we play hosts to the DP World Championship Tour, the Season Finale of the European Tour’s Race to Dubai, which welcomes 60 of the world’s top golfers to play on our award-winning Earth course. At this year’s tournament tin November 2016, we expect to welcome more than 65,000 global spectators, with the tournament now a major date in the global sporting calendar.

We are passionate about golf and about extending our passion for its to global markets having recently supported the oldest international event in India – the Hero Indian Open, which is part of the European Tour circuit.

Any plans to host a long-term tour level tournament on the course?

Every year, we play hosts to the DP World Championship Tour, the Season Finale of the European Tour’s Race to Dubai, which welcomes 60 of the world’s top golfers to play on our award-winning Earth course. At this year’s tournament tin November 2016, we expect to welcome more than 65,000 global spectators, with the tournament now a major date in the global sporting calendar.

Share some information about the property – how much of it is golf related, what is the extent and nature of residences offered and the type of commercial activity at the Jumeirah Golf Estates

Jumeirah Golf Estates is home to two of the region’s best golf courses, with rolling green fairways seamlessly intertwined with a luxury residential community. Currently Phase A of the community is underway, consisting of 375 hectares of a 1,119 hectare land parcel. Phase A culminates 16 unique comminutes, comprising of more than 1,700 constructed and under construction properties.

In addition to two world-class golf courses, Jumeirah Golf Estates is home to a number of premium leisure and residential facilities, making it a top choice for homeowners and investors. In the past two years, Jumeirah Golf Estates has introduced the Country Club Gymnasium and a state-of-the art Clubhouse, complete with a retail store, restaurant, terrace and pool, and it has quickly become the community’s social focal point. Due for completion in September 2016, a 45,000 square foot retail centre is the next highly anticipated addition to the community.

Most recently, Jumeirah Golf Estates launched its latest development, Alandalus, a collection of 674 affordable luxury apartments and 54 townhouses starting from 11,133,637* Indian Rupee (AED597,000). In September 2014, Jumeirah Golf Estates announced the launch of ‘Redwood’ – a new collection of premium 5-6 bedroom villas (Redwood Avenue) and 3-4 bedroom townhouses (Redwood Park), located in the heart of the community. Prices for Redwood Park start from 55,405,138* Indian Rupees (AED 2.97 million) and Redwood Avenue starts from 206,783,536* Indian Rupees (AED11.1 million).

*Approximate currency conversions

Are you attracting a lot of international attention towards Jumeirah Golf Estates?

International attention in Dubai property market has always been high. The main reason is that Dubai’s rental yields are averaging just over seven per cent – extremely attractive when compared with cities such as Hong Kong at around two to three per cent and London at three to four per cent. In some parts of Dubai, the yield can be as high as 10 per cent. The Dubai property market continues to mature as a result of strategically implemented government regulations, including the increased property registration fees and mortgage caps, so 2016 will be the perfect time to invest.

In 2015, the Dubai Land Department (DLD) reported that the value of real estate transactions registered in the city increased by 8 per cent to Dh267 billion, with total transactions – including sales, mortgages and transfers – also increasing by 18 per cent to 63,719 (2014: 53,871).

Sales of land and buildings made up 49 per cent of the total, with more than 48,000 transactions adding up to Dh130bn of deals. That means the number of deals done increased by 26 per cent when compared with last year’s published figures, while the value of deals increased by 16 per cent.

During 2015, it was estimated that Indian investment (totalling over Rs 30,000 crore) in Dubai’s property market was almost twice that of the next biggest investor – the United Kingdom. To leverage clear interest in the Indian market, we recently announced a partnership with SPF Realty, an award-winning SME100 real estate agency, to spearhead our strategic sales drive targeting Indian property investors. We are seeing good traction from discerning buyers from India in our various projects.

Jumeirah Golf Estates has also recently taken part in road shows in Hong Kong. Located only minutes from the official site of the upcoming EXPO 2020, discerning investors are increasingly turning to Dubai, in particular Jumeirah Golf Estates, to capitalise on high rental yields, low cost per square foot and the financial advantages of purchasing in the thriving city of Dubai.

[1] Before indirect and induced impacts are included.