MAG 218 Progress, Construction News and Demographics
The expected date of completion for the MAG 218 tower has been pushed back from mid-2008 to nearer the end of 2008. Those who are versed in the history of the MAG 218 project may recall that construction on the tower was originally due to commence in August 2005. Construction work, however, began only in February 2006. It appears the developer was reluctant to announce a delayed completion schedule, until now.
It attributes the delayed construction start to stalling by Dubai municipality on issuing permits, due to extensive roadworks in the vicinity of the MAG 218 tower and throughout the Marina. There appear to be ongoing discussions about how to improve traffic flow in the area. Indeed, the ongoing No. 5 Interchange construction work is both expansive and elaborate. The construction zone appears to extend as far as the road fronting the SZR side of the MAG 218, sometimes referred to as "D Road", which is being widened right upto the edge of the MAG 218 plot.
Click on map for detail.
The Construction Site
At present, work is proceeding day and night at the MAG 218 site. A visit to the site reveals a panoply of machines, a large dig area at center with trenches along its perimeter, the site offices, stacks of storage containers, various tanks and mounds of sand. The two roadsides are lined with construction hoarding and the other two sides are open to adjoining plots scattered with machinery being used for the MAG 218. It is presently a very active construction zone.
The developer reports shoring work complete up to 80%. Basically this involvles construction of an underground cavity wall to support the excavation site. It includes embedding a support system around the entire perimeter of the planned dig area. Digging or excavation of the 30 meter deep basement is soon to commence. The developer reports that the entire piling operation is due to be completed by the end of July.
In this regard the MAG 218 Community website will solicit details and provide regular updates on construction progress from the project manager. These updates will not only document with photos the pace and form of construction, but also offer some explanation of the building process at hand, in terms understanble to the layperson.
The Emerging Upper Marina
Projection of the Upper Marina neighborhood as seen from Al Sufouh Road; source: Skyscrapercity.com Dubai Marina Forum
A recent visit to the MAG 218 site reveals a rapidly changing landscape. In addtion to the MAG 218 plot, the entire block on which it sits and adjacent areas are being transformed. Notably the 23 Marina site (tallest tower pictured above at left) on the Media City side of the MAG 218 has been excavated, while other plots behind the row of towers lining Al Sufouh Road are seeing extensive activity. As mentioned above, D Road and the entire No. 5 interechange along Sheikh Zayed Road is undergoing major construction work.
Click on map for detail.
In the block opposite the MAG 218, with plots nearer the Marina canal's edge, extensive construction activity is going on at the Torch and Princess tower plots (tallest building at center, Princess, and builidng just to its right, Torch) and other sites, including destruction of the former Emaar Sales Center to make way for additional structures.
Artist's rendition of the tallest of the new towers to be built in the Upper Marina; source: Skyscrapercity.com Dubai Marina Forum
The MAG 218 tower, shorter than any of those pictured above, will stand about 250 meters in height.
Within the coming months one will be able to see the emergence of the new interchange along with several new towers and a shopping mall. The developing picture is that of a massive interchange with up to 10 flyovers, several towers rising 60-100+ floors, and an attractive boutique shopping mall linked to a luxury hotel property with landscaped courtyard and fountains.*
Currently there are six towers in the area either newly completed or in advanced states of construction, all in the range of 50 storeys tall. The up and coming towers will more than double this number with heights of upto twice their size. For property investors in the MAG 218 and the rest of the Upper Marina, it is a very exciting time to witness the transformation of the neighborhood.
*There is a rash of speculation on what will be built at the former site of the Emaar Sales Center, a rather expansive zone of more than three large plots fronting the Marina's main quay. My own speculation, based on observation of patterns of development within Dubai, is that the site will see the construction of an expansive hotel and apartment development linked to the already confirmed shopping mall to be built across the road. Master-developer Emaar is famously tight-lipped, so there is unfortunately no confirmation on what will in fact be built.
The Delay Question
Always a contention for investors is when their properties will be complete. It is perhaps also a major headache for developers. The concerns of the inverstor are quite understandable. Many may plan to fund their purchases with rent paid on units they hope to let out once construction is complete. Other buyers who intend to live in their new properties may be in the difficult position of having to pay rent on their current place of residence in addition to the installments on their new property purchase, while waiting for it to be completed.
The developer, on the other hand, has to deal with a multitude of factors both within and beyond its control, which can easily effect the pace of work. One might expect the thoughtful developer to build in some slack in its initial completion date estimates, to allow for those unexpected issues that might cause delays. This, however, must be balanced with the need to avoid putting off potential investors with overly cautious completion date estimates.
In the case of the MAG 218 it may be reasonable to expect that a tower of this size may require an actual construction period of 1.5 to 2.5 years. In initially annoucing a 3-year estimate for completion of construction it would seem that the developer was allowing for 6 months to over a year of potenetial delays. With the actual construction beginning some 6 months later than originally projected, the developer may still be within its margin of potential delay, which would explain a reluctance to announce any revised completion date estimate.
The developer is now saying that there will be a delay of four months or so, with completion estimated toward the end of 2008. This probably reflects a realization that having already used up 6 months of its cushion even before construction work began, an additional period of slack is required to allow for any additional issues that may come up as construction proceeds. It is reasonalbe that MAG PDD has come to this conclusion still 2 and a quarter years prior to the initially proposed completion date as opposed to springing any news of postponement just months before completion, as has happenned with some Dubai projects.
MAG 218 Sales and Community Demographics
The developer reports that 390 of the total 550 units in the tower have been sold. Many of these sales came as a result of MAG PDD's recent sales campaign which encouraged buyers to make their purchases prior to 02 April when prices would be increased by 10%. Keeping to its word and providing a boon to those who had in fact made purchases, prices did rise 10% effective 02 April. With only 160 units still available for purchase, those on the fence or just considering a purchase may need to act with some haste.
Is the MAG 218, especially with its new 10% premium, a worthy investment? This site offers extensive information on which to judge this question. In addition to what has already been discussed in various posts, the description above of how the Upper Marina area is emerging offers additional perspective.
Dubai Metro (click image to view entire metro network)
There is no doubt that this will be one of the premier addresses in Dubai. Not only is it within the Dubai Marina, itself a desirable address whether from the perspective of living or holidaying, but it will also be the site of some of the tallest and most distinctive towers in Dubai. It will stand at the edge of one of the most elaborate and important interchanges on the Sheikh Zayed Road and in the middle of a transport network to include nearby metro, tram and bus stops.
The developer is also reporting a very European community in the MAG 218 tower, with principle purchasers including Russians, Italians, Germans, British and other European nationals, in addition to Singaporeans and a scattering of inverstors from other countries. It promises to be a colorful mix which will likely mirror the very international face of the Dubai Marina. Purchasers of units are encouraged to visit the Who We Are page to add their details.
Of Further Note
News of who will be the main contractor for the MAG 218 project should be forthcoming. In addition, plans are being made to interview the architect behind the MAG 218 design. Any readers with questions they might like to pass on to him are welcome to post them in comments below or contact the website manager.
Return to MAG 218 Community homepage.
It attributes the delayed construction start to stalling by Dubai municipality on issuing permits, due to extensive roadworks in the vicinity of the MAG 218 tower and throughout the Marina. There appear to be ongoing discussions about how to improve traffic flow in the area. Indeed, the ongoing No. 5 Interchange construction work is both expansive and elaborate. The construction zone appears to extend as far as the road fronting the SZR side of the MAG 218, sometimes referred to as "D Road", which is being widened right upto the edge of the MAG 218 plot.
Click on map for detail.
The Construction Site
At present, work is proceeding day and night at the MAG 218 site. A visit to the site reveals a panoply of machines, a large dig area at center with trenches along its perimeter, the site offices, stacks of storage containers, various tanks and mounds of sand. The two roadsides are lined with construction hoarding and the other two sides are open to adjoining plots scattered with machinery being used for the MAG 218. It is presently a very active construction zone.
The developer reports shoring work complete up to 80%. Basically this involvles construction of an underground cavity wall to support the excavation site. It includes embedding a support system around the entire perimeter of the planned dig area. Digging or excavation of the 30 meter deep basement is soon to commence. The developer reports that the entire piling operation is due to be completed by the end of July.
In this regard the MAG 218 Community website will solicit details and provide regular updates on construction progress from the project manager. These updates will not only document with photos the pace and form of construction, but also offer some explanation of the building process at hand, in terms understanble to the layperson.
The Emerging Upper Marina
Projection of the Upper Marina neighborhood as seen from Al Sufouh Road; source: Skyscrapercity.com Dubai Marina Forum
A recent visit to the MAG 218 site reveals a rapidly changing landscape. In addtion to the MAG 218 plot, the entire block on which it sits and adjacent areas are being transformed. Notably the 23 Marina site (tallest tower pictured above at left) on the Media City side of the MAG 218 has been excavated, while other plots behind the row of towers lining Al Sufouh Road are seeing extensive activity. As mentioned above, D Road and the entire No. 5 interechange along Sheikh Zayed Road is undergoing major construction work.
Click on map for detail.
In the block opposite the MAG 218, with plots nearer the Marina canal's edge, extensive construction activity is going on at the Torch and Princess tower plots (tallest building at center, Princess, and builidng just to its right, Torch) and other sites, including destruction of the former Emaar Sales Center to make way for additional structures.
Artist's rendition of the tallest of the new towers to be built in the Upper Marina; source: Skyscrapercity.com Dubai Marina Forum
The MAG 218 tower, shorter than any of those pictured above, will stand about 250 meters in height.
Within the coming months one will be able to see the emergence of the new interchange along with several new towers and a shopping mall. The developing picture is that of a massive interchange with up to 10 flyovers, several towers rising 60-100+ floors, and an attractive boutique shopping mall linked to a luxury hotel property with landscaped courtyard and fountains.*Currently there are six towers in the area either newly completed or in advanced states of construction, all in the range of 50 storeys tall. The up and coming towers will more than double this number with heights of upto twice their size. For property investors in the MAG 218 and the rest of the Upper Marina, it is a very exciting time to witness the transformation of the neighborhood.
*There is a rash of speculation on what will be built at the former site of the Emaar Sales Center, a rather expansive zone of more than three large plots fronting the Marina's main quay. My own speculation, based on observation of patterns of development within Dubai, is that the site will see the construction of an expansive hotel and apartment development linked to the already confirmed shopping mall to be built across the road. Master-developer Emaar is famously tight-lipped, so there is unfortunately no confirmation on what will in fact be built.The Delay Question
Always a contention for investors is when their properties will be complete. It is perhaps also a major headache for developers. The concerns of the inverstor are quite understandable. Many may plan to fund their purchases with rent paid on units they hope to let out once construction is complete. Other buyers who intend to live in their new properties may be in the difficult position of having to pay rent on their current place of residence in addition to the installments on their new property purchase, while waiting for it to be completed.
The developer, on the other hand, has to deal with a multitude of factors both within and beyond its control, which can easily effect the pace of work. One might expect the thoughtful developer to build in some slack in its initial completion date estimates, to allow for those unexpected issues that might cause delays. This, however, must be balanced with the need to avoid putting off potential investors with overly cautious completion date estimates.
In the case of the MAG 218 it may be reasonable to expect that a tower of this size may require an actual construction period of 1.5 to 2.5 years. In initially annoucing a 3-year estimate for completion of construction it would seem that the developer was allowing for 6 months to over a year of potenetial delays. With the actual construction beginning some 6 months later than originally projected, the developer may still be within its margin of potential delay, which would explain a reluctance to announce any revised completion date estimate.
The developer is now saying that there will be a delay of four months or so, with completion estimated toward the end of 2008. This probably reflects a realization that having already used up 6 months of its cushion even before construction work began, an additional period of slack is required to allow for any additional issues that may come up as construction proceeds. It is reasonalbe that MAG PDD has come to this conclusion still 2 and a quarter years prior to the initially proposed completion date as opposed to springing any news of postponement just months before completion, as has happenned with some Dubai projects.
MAG 218 Sales and Community Demographics
The developer reports that 390 of the total 550 units in the tower have been sold. Many of these sales came as a result of MAG PDD's recent sales campaign which encouraged buyers to make their purchases prior to 02 April when prices would be increased by 10%. Keeping to its word and providing a boon to those who had in fact made purchases, prices did rise 10% effective 02 April. With only 160 units still available for purchase, those on the fence or just considering a purchase may need to act with some haste.
Is the MAG 218, especially with its new 10% premium, a worthy investment? This site offers extensive information on which to judge this question. In addition to what has already been discussed in various posts, the description above of how the Upper Marina area is emerging offers additional perspective.
Dubai Metro (click image to view entire metro network)
There is no doubt that this will be one of the premier addresses in Dubai. Not only is it within the Dubai Marina, itself a desirable address whether from the perspective of living or holidaying, but it will also be the site of some of the tallest and most distinctive towers in Dubai. It will stand at the edge of one of the most elaborate and important interchanges on the Sheikh Zayed Road and in the middle of a transport network to include nearby metro, tram and bus stops.The developer is also reporting a very European community in the MAG 218 tower, with principle purchasers including Russians, Italians, Germans, British and other European nationals, in addition to Singaporeans and a scattering of inverstors from other countries. It promises to be a colorful mix which will likely mirror the very international face of the Dubai Marina. Purchasers of units are encouraged to visit the Who We Are page to add their details.
Of Further Note
News of who will be the main contractor for the MAG 218 project should be forthcoming. In addition, plans are being made to interview the architect behind the MAG 218 design. Any readers with questions they might like to pass on to him are welcome to post them in comments below or contact the website manager.
Return to MAG 218 Community homepage.
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