Dubai - Success Stories

The Development of the World!

The Project
Developed by Al Nakheel Properties – the development arm of the Dubai government – and located four kilometres from the shoreline of Jumeirah Beach, the World is a high-profile one-of-a-kind project which projects a mercator pf the world through the excavation of 300 islands. Located between the Palm Jumeirah and the Burj al Arab, this US$1.8 billion project was completed early 2008 and the islands have been individually sold to investors who have the option of developing private homes, estate homes, dream resorts and community islands. Nakheel has set forth guidelines instructing investors to develop elite developments so as to maintain the exclusive appeal of the entire mega-project.

The client, an Indian national, with other major projects around the UAE, commissioned HVS to recommend the best use for the four Indian islands on the World development in Dubai. They were interested in learning the highest and best use of the four islands. HVS was instructed to recommend facilities, including themes and differentiating factors, for the entire development. We were given complete freedom on our vision allowing us to incorporate all aspects of the development and its location. This was HVS’s first project on the World, however our vast knowledge of the market and reputation of creativity and credibility in the market encouraged our client to choose HVS over our competitors.

The Results
In order to perform this extensive engagement and advise on the most viable project concepts we have performed initial case studies comparing the Indian Islands with ultra-luxurious island destinations around the world, including the Caribbean, Maldives, Mauritius and Seychelles. A detailed analysis of supply and demand within the Dubai market then allowed us to comment on the ideal size and positioning of the proposed hotel within the development. Furthermore, we conducted a detailed analysis of demand and supply of the luxury residential apartments and villas both for sale and rent in the Dubai area and this helped us analyze the ideal number of residential units and serviced apartments for the development. Through a pricing and positioning analysis we were able to compute the ideal average price per square foot for the residential units within the development. Consequently, our analysis concluded with the provision of indicative profit and loss projections for each component of the development as well as an aggregate return on investment analysis which proved the development to be financially viable.

Overall the project was a great success. We suggested incorporating the theme of Indian architecture and design as well as values and recommended a resort with serviced apartments as well as residential villas to be constructed on the four islands. Our recommendations included an entertainment complex on one of the islands so as to cater to both the internal and visiting guests of the development. Furthermore, due to the typically large size of Indian families, as our research indicated, we suggested incorporating activities for children, and included in the Development a wildlife theme park, kids’ club and wave pool.

The clients were very satisfied with the outcome and we hope to work further with them on this project for the operator search.