Opportunity
Problem
Dubai’s residential market may face a long-term shortage due to projected population growth, prompting a development surge. According to Knight Frank, external factors such as the Dubai Economic Agenda ‘D33’, aiming to double the emirate’s GDP by 2033, will drive demand for human resources. By then, the population is expected to reach around six million, up from the current 3.5 million, with the Dubai Urban Master Plan 2040 pushing this figure to 7.8 million shortly after.
The anticipated increase in city residents will necessitate a significant residential development boom. The government forecasts the need to nearly double the current housing stock to meet these population targets, which are projected to hit 7.8 million by 2040.
The challenge of affordable housing in Dubai has persisted, presenting an ongoing issue. While the exact figures may have shifted over time, it is evident that much of the housing currently available remains beyond the reach of many middle-income professionals – individuals crucial to Dubai’s goal of becoming a global hub for knowledge-based, sustainable, and innovative businesses.
Solution
The Dubai 2040 plan acknowledges the necessity of a multi-faceted strategy involving various initiatives to bolster the supply of affordable housing. A key element for a sustainable, long-term solution is to incentivize the private sector to contribute more affordable housing options. The success of the Dubai 2040 vision and the city’s competitive edge hinge significantly on the creation of affordable housing for both rent and sale.
The establishment of a dedicated high-level urban planning committee and the call for more formal policies indicate policymakers’ awareness of the importance of aligning the demands of middle-income groups with the appropriate supply. While the outcome of these efforts remains to be seen, the growing consensus that action must be taken is a positive step towards meaningful change.
Market
Majan One Residence is convenient for those who want to be close to the heart of Dubai but also appreciate the peace of suburban living.
The community is ideal for families with children as it offers many educational institutions, healthcare facilities, and parks. The neighbourhood has many family-friendly amenities such as playgrounds, pools, and green spaces. The area is also popular with young professionals who are looking for an affordable place to live that is still close to the city. With many low-rise buildings and well-designed apartments, Majan provides an affordable alternative to living in the city centre.
Investors are invited to be part of this transformative project that not only addresses Dubai’s housing challenges but also aligns with its vision for a sustainable and competitive future. Join us in creating a brighter tomorrow for Dubai with Majan One Residence.
Investment Opportunity: Majan One Residence
KAFKA is presenting an enticing investment opportunity with the acquisition of Majan One Residence, a sprawling 23,000 sqft parcel of prime land in Dubai’s burgeoning Majan area. This plot is set to transform into a G+4 new build, comprising 123 units of top-tier, yet affordable, single-family residential homes to meet the rising demand in the UAE.
Majan One Residence promises substantial potential for investors through capital infusion into KAFTA. We are executing a strategic off-plan sales strategy with a swift construction schedule, ensuring attractive returns for our investors.
Strategically situated within a contemporary, diverse, mixed-use development, the envelope sits adjacent to the expansive cycling track along Emirates Road. Majan is a burgeoning community designed around spaciousness and local urban amenities. Residents will enjoy unparalleled access to premier retail and leisure facilities right at their doorstep.
Investment Breakdown:
- KAFKA is seeking AED 20 million from an investor or group of investors. This capital will fund the land acquisition and propel us towards the construction phase.
- Investors can expect a return of 20% every 12 months for 24 months.
Investor Criteria:
- Minimum investment: AED 500,000 per investor.
- Investors will start receiving their return on investment (ROI) from month 13 onwards, alongside full repayment of the initial investment by month 25, upon project completion and delivery.
This is an exclusive opportunity to be part of Majan One Residence’s success story, where premium living meets lucrative investment returns.
Fig 1: Google Map indicating Majan One Residence: KAFKA Developments LLC
Roadmap
Operational Timeline Following Funding Acquisition:
Initial Funding: AED 30 million
Within 30 Days:
- Identify and purchase the plot of land for the project.
Within 60 Days:
- Appoint a consultant to design the building.
- Form the company and obtain a trade license.
- Secure registration with the Real Estate Regulatory Authority (RERA).
- Design and prepare marketing materials.
- Hire key personnel, including an office manager, two salespeople, and a Chief Operating Officer (COO).
- Secure office space for the company’s operations.
- Open a bank account to manage funds.
- List the property with various property agents to attract potential buyers.
Within 120 Days:
- Complete the project registration with the land department.
- Pay 30% of the construction costs to the Dubai Land Department (DLD) and the respective escrow accounts.
From 90 to 180 Days:
- Actively sell units and negotiate payment terms with end-users.
At 180 Days:
- Register the sold units with the land department to obtain pre-title deeds.
From 180 Days to 660 Days:
- Collect payments from customers as per the agreed terms.
- Ensure effective management of the construction process, addressing any issues that arise and keeping the project on schedule.
From 660 Days to 720 Days:
- Conduct the handover process, ensuring that all units are delivered to the buyers as per the contractual agreements and in compliance with regulatory standards.
MILESTONES:
KAFKA Developments LLC’s Growth: 3, 5, and 10 Years
3-Year Growth:
- Market Expansion: In the first year, KAFKA Developments LLC aims to solidify its position in the real estate market with the successful completion and delivery of the Majan One Residence project. This completion will establish the company as a reliable developer, attracting more investors and buyers for future projects.
5-Year Growth:
- Portfolio Diversification: By the third year, KAFKA Developments LLC plans to have a diverse portfolio of residential and commercial projects. These projects will include high-rise residential buildings, mixed-use developments, and commercial spaces, catering to different market segments.
10-Year Growth:
- Regional Dominance: By the fifth year, KAFKA Developments LLC aims to become a dominant player in the regional real estate market. Its reputation for quality, innovation, and reliability will attract partnerships with major investors, contractors, and architects.
Company Overview
Despite being a new player in the industry, KAFKA Developments is led by a seasoned management team that understands the intricacies of real estate development, possesses financial acumen, and has demonstrated entrepreneurial success in previous ventures. This strong foundation of experience and expertise positions KAFKA Developments to navigate the challenges and opportunities of the real estate market effectively.
