World-beating highs in Dubai but lows in Abu Dhabi for developer

Tameer has officially unveiled Princess Tower, the world's tallest residential building, in Dubai – complete with luxury gyms, pools and a private room where residents can enjoy stunning 360° views of the Palm Jumeirah.

Tameer yesterday officially unveiled Princess Tower, the world's tallest residential building, in Dubai. Duncan Chard / Bloomberg News

It was a tale of two tower schemes as well as two cities for Tameer yesterday.

The developer, based in Dubai, officially unveiled the world's tallest residential building, Princess Tower, in Dubai - complete with luxury gyms, pools and a private room where residents can enjoy stunning 360° views of the Palm Jumeirah.

However, away from the razzmatazz, work remains stalled at the developer's sister scheme on Reem Island, Abu Dhabi. Standing on the 97th floor of the record-breaking Princess Tower tower, Federico Tauber, the president of Tameer, announced 98 per cent, or 748, of the apartments in the building were now sold and 150 had been handed over.

He said prices at the Dh1.5 billion (US$408.3 million) development ranged from about Dh1,200 per square foot to about Dh2,500 per sq ft.

The next-door Elite Residence, also developed by Tameer, and itself the third-highest residential tower in the world, was also 90 per cent sold, Mr Tauber said.

He added the developer was now "actively looking for further development opportunities in the Dubai market".

He said, however, about 5 per cent of owners had defaulted on sales during the construction process, which was initially expected to be completed by 2010. But he said the developer was seeing a "strong recovery in prices" this year.

"The ability to face these exceptionally challenging market conditions was only achieved with the help of Tameer owners, the support and trust of our clients," Mr Tauber said.

Work on the company's Dh7bn Tameer Towers scheme on Reem Island in Abu Dhabi remains stalled, however.

Mr Tauber said the slow Abu Dhabi property market, which typically lags behind the Dubai market, was one of the reasons delaying the developer re-starting work on the project.

It was expected to be completed last year but was delayed and then halted altogether in July after construction workers went on strike.

Last month The National reported at least 12 investors who had paid deposits for apartments in the scheme accepted partial refunds, while another 35 await the outcome of an arbitration case against the developer.

"We do not have a specific date to announce yet for starting work on Tameer Towers," said Mr Tauber.

"We need to make a decision based on the issues we are now dealing with. It is not the strike. We are dealing with a new contractor so it's a fresh international company."

Work on Tameer Towers is widely expected to re-start in 2013 although Mr Tauber declined to comment on that.