Tuesday, October 07, 2014

Dubai property market, now on a more stable & sustainable growth path

The real estate market in Dubai is showing signs of sensible and sustainable growth with residential property being the most prominent sector. This is, as revealed by the Capital Club, Dubai’s premier private City Club and member of ENSHAA group of companies, together with ENSHAA PSC, the premium quality project developer and lead hospitality service provider.

The panels discussed the short to medium term situation in Dubai property market and revealed that although there has been considerable growth over the past two years, the rate of growth has levelled to a sustainable level in the second quarter of this year.

The ENSHAA PSC CEO, Raza Jafar, said that the Dubai market holds a great deal of potential, particularly when considering its position in comparison to other major international cities.

Dubai’s position as a global financial hub is well-established when combined with the strength of its infrastructure and the quality projects being delivered in its property sector. Therefore, it is now on par with any other international hub like London, New York, Singapore, Shanghai, or Sydney.
Dubai also offer excellent earning opportunities to its residents due to its no-tax policy. Therefore, the current generation with their disposable income have the opportunity to build-up real estate assets here.

He further emphasized that Dubai prime real estate is now priced at one-tenth the price in London, about one-seventh of New York and about a quarter of that in Singapore, which indicates the opportunities that are open for both local end-users and international investors.

With these sentiments, recently the JLL Dubai Property Market Report was released, and when Craig Plumb, the JLL CEO said that the market is on the rise in Dubai, with the residential sector in particular, being the star performer.

The average prices in this sector have growth by 64 percent over the last two years. The market still continues to grow and is almost at the top now. The prices are still going up and now, the growth has become more sustainable, which implies that the market has seemed to gain some stability.

Craig Plumb further noted that although there have been a lot of new launches, majority of the projects are still in the launch phase and not scheduled to hit the market any time soon.

Further according to data available 15000 to 20000 units being added to market each year. Taking into account the total supply of housing units in Dubai is just below 400,000, it implies that the increase in supply is only around 5 percent, which is a sustainable figure when considering Dubai’s constant population growth.

According to the panel, although there would be an increase in supply over the next few years, the demand in residential sector will still outstrip supply, and hence prices in residential sector are unlikely to dip.

Further, majority of smaller developers have shifted their focus from wholesale and are not selling ‘off plan’ properties, unless these sales are to cover mortages of actual end-users. The market is more stable now, and the smaller non-governmental developers are now more sensible about how they approach new projects, which works well for its growth in the long-term, said Andrew Chambers, CEO of GGICO Properties.

Monday, September 22, 2014

It’s raining mega projects in Cityscape Global Property Expo

The first day of the three-day Cityscape Global Property exhibition unveiled in Dubai yesterday, was a grand success, with series of new projects worth billions of dirhams having been unveiled.  Upbeat real estate developers in Dubai announced series of new launches – master developments and standalone projects, mainly targeting the upmarket segment.  Majority of these announcements came from state-owned developers, although property experts believe private sector will get active when the work starts on Expo 2020 venue site and when all infrastructure plans are unveiled. More new project announcements are yet to come.

Union Properties
Leading Dubai Financial Market-listed developer, Union Properties has announced three new projects worth Dh.2.15bn, among which, the launch of Dh.1.1bn ‘The Vertex’, a five-tower project in MotorCity.

The five-towers will have a total of 700 apartments, said Ahmad Khalaf Obaid bin Touq al Marri, General Manager, Union Properties. The construction will begin once the Dubai Municipality approves to begin construction.

Union Properties also plans to unveil phase 2 and 3 of Green Community in MotorCity and Dubai Investment Park, worth Dh.400million and Dh.650mn respectively. These phases comprise 74 and 78 villas, and 127 apartments. The phase 3 of Green Community, DIP will have 210 villas, 22 duplex units and 16 apartments.

The Dubai-based developer, Omniyat, has announced a Dh.3.5bn launch with Dh.2bn being allocated for One at Palm Jumeirah and Dh.600mn Anwa in Dubai Maritime City and Dh.900mn ‘The Sterling’ at Burj District. All three projects are in outstanding locations, which is the key in Dubai’s competitive real estate market, said the Chairman of the group.

Dubai Holding
The subsidiaries of Dubai Holding namely, Dubai Properties and Tecom Investments will unveil details of their new projects with parent company having announced Dh.25bn Mall of the World, due to be the largest temperature-controlled pedestrian city with mixed-use components in the world.

The developer will also launch Dubai Wharf, a Dh.800mn project in Culture Village. This mixed-use project features 582 housing units, 150 retail, dining and entertainment units on the ground and first floors and over 2000 resident and visitor car parking spaces at basement. There are pedestrian bridges over the canal with full connectivity throughout Cultural Village developments. The Dubai Wharf is easily accessible from Al Khail Road Business Bay crossing and Al Jaddaf Road.

Dubai Properties also launched Maram Residence in Burj Khalifa district, a two-tower project which caters to increased demand for luxury residential and commercial property in strategic locations across Dubai. The 27 storey towers will include single, double and triple bedroom apartments apart from six exclusive penthouse suites. The development will also include business lounge, indoor children’s play area, outdoor children’s play and pool area, state-of-the-art gym and fitness area, a jogging track, sky garden with seating areas and water features, infinity pool deck at roof level with lounge for an ideal urban lifestyle.

Indigo Properties
The Indigo Properties has revealed plans of Dh.1.5bn ‘Indigo Zen’, a villa development in Dubai Golf City, Dubailand, which offers residents a tropical resort lifestyle.

Construction will begin in the 1st quarter of 2015 and will be completed in 24 months. The development would comprise 346 villas in the range 4000sq. ft. to 10,000 sq.ft, said Dey Maitra, Chief Executive Officer, Indigo Properties.

Meydan, the developer of world’s biggest horse-racing complex, will showcase the ‘Meydan Avenue’, wherein residents get to enjoy a high street-style living with open spaces and natural parks.  The residents will have facilities including neighbourhood shopping centres, kindergartens, and mosques.

Meydan Avenue aims to establish new standards of living with wide choice of places to gather, explore and enjoy. This development offers residents and visitors unparalleled options for outdoor living, including open air shopping which will break new retail ground in Dubai.

Meydan Group also announced the Mohamed Bin Rashid Al Maktoum City District Eleven project, a suburban mixed-use community development that features private schools, parks, retail businesses with two prime residential areas. The residential areas cover a ground space of 450,000 sqm and 210,000 sqm respectively. Meydan Group will eventually accommodate up to 2000 students, sports and recreational facilities, including rugby fields, cricket grounds and a running track.

Investment Corporation of Dubai
Early this month, the investment corporation of Dubai announced three projects worth Dh.10.5bn, comprising Dh.5.5bn worth Royal Atlantis Resort on the palm, Dh.2.5bn ‘One Za’abeel’ project and Dh.2.5bn ‘Warsan’ project.

The developers have launched 42 developments including 17 villa and townhouse projects this year until end of August, comprising 11,250 units. The on-going Cityscape Global is expected to receive about 35,000 participants from around the world with exhibitor numbers reaching over 280 for the first time in five years.

The property show is co-located with three other dedicated and expert-led conferences, which are likely to include 1000 or more senior real estate professionals. Running in tandem with the exhibition is the Cityscape Awards for Emerging Market in 13 categories.

Meraas La Mer Jumeirah
Meraas is building a theme park and Bluewaters Island launched at La Mer, a mixed-use development which is likely to come up in Jumeirah and in the vicinity of Pearl Jumeirah Island.
Construction is due to commence in fourth quarter of 2014, the developer said, which is also building theme parks and Bluewater Island.

La Mer will spread across 9.5million square feet of existing and reclaimed land comprising four distinct zones – the beach, entertainment hub, leisure hub, North and South Island and feature leisure, commercial, residential and hospitality components. La Mer will include fully integrated residential neighbourhoods that will have 688 apartments and villas and a 160 key hotel.

The Deyaar development has unveiled ‘Midtown’ a 5.5million square feet upscale master development, adjacent to the southern end of Jumeirah Golf Estates. Deyaar will include 27 buildings, two hotels on the northern and southern tips, 13 separate residential buildings on the eastern side of the development and 12 buildings clustered into four groups. Three buildings are joined into one group on the west side of the master-plan and all the 27 buildings will share a one-level podium covering parking, retail and essential services.

Nakheel launched the ‘The Palm Gateway’, a three-tower waterfront living and leisure complex with more than 1300 homes, retail, a beach club, dining and health and fitness amenities.

The Palm Gateway comprises three individually designed high-rise residential buildings, the tallest topping 260m with single, double and triple bedroom apartments available for lease. The towers will be built on the existing Palm Monorail Gateway terminal, the roof of which, will be transformed into a 15th floor podium with infinity pool, sports facilities, shops set in huge landscaped grounds. The Palm Gateway will also have beach club and park, a shaded landscaped complex with a range of waterfront dining and shopping options, barbecue areas, pool, and fitness amenities, including jogging tracks.

Friday, September 19, 2014

Marwa Homes Phase One to be delivered by December 2014

The Cityscape Dubai 2014 will witness the launch of ‘Marwa Homes Phase 1’, the new and unique townhouses on sale in Dubai, with handover in three months.

The ‘Marwa Homes’  is the latest and most exciting housing project by New World Development LLC till date. The Marwa Homes Phase 1 includes a series of unique townhouses due for delivery by December this year, with 75 percent of theproject already complete.

The series of 14 uniquely designed townhouses, each with four well-designed rooms, a maid room, a terrace garden, is a one-off housing project located in the vibrant Jumeirah Village Community. The unique and stylish designs, luxury finishing, and easily accessible audio and video integrated intercom system makes this a special offering.

New World Development LLC is offering this Dh.600mn investment opportunity in the form of Marwa Homes (G+2 townhouses), Marwa Heights (G+10) residential tower, and Marwa Views (Towers A, B, C, D – G+4), located in Meydan, Dubai, all due for completion over the next two years.

Heading this huge development is ‘Crystal Bright Real Estate’ armed with years of experience and deep understanding and involvement with prime luxury properties in Dubai.

Further, to facilitate mortgage payment options for prospective home owners, the developer is offering easy payment plan of 25 percent down payment with remaining at the time of delivery, offering prospective home owners the opportunity to financially secure their dream home.

The Cityscape Dubai 2014 is one of the most significant exhibitions as it would mark the launch of a leading project Marwa Homes, said Mohammad Haroon Habib, the Director of New World Development LLC.

The success of Marwa Homes will lead to the success of Marwa brand, an opportunity worth Dh.600million, which will be made available over the coming two years, Habib said.
Marwa Properties would be located in Meydan and Jumeirah Village. The Marwa Homes Phase One would be delivered before the year-end, he affirmed.

Tuesday, September 02, 2014

New three-tower residential project to come up at DuBiotech

Deyaar, the leading Dubai-based developer has announced the launch of Montrose, a three-tower residential and hotel apartment project, located at DuBiotech Life.

The project comprises three towers – a hotel apartment, and two residential towers, named after ‘Mountain Rose’, the captivating flower.

The towers are likely to take shape in DuBiotech, a life sciences group, under Tecom Investments, and are among the greenest corridors at the extension of Umm Suqeim, towards Mohammed bin Zayed Road. The new project is just seven-minute drive from Mall of Emirates, located adjacent to Miracle Garden and 20 minutes away from Dubai Mall.

Each of the towers comprises three basement levels and 19 storeys. Two residential towers feature 68 single bedroom, 68 double bedroom and five triple bedrooms and two four bedroom apartments, the statement said.

The hotel apartment tower has been designed to include 88 studios, 68 single bedroom and 24 double bedroom units.

The housing units at Montrose will open for sale on 6th September at Deyaar’s new sales and service centre in the Burlington Tower, Business Bay.

Being the latest development address by Deyaar, the development caters to the growing need for residential and well-appointed service apartments in Dubai.  The company has forayed into this sector, mostly due to Dubai’s projection of attracting more than 20million visitors during Expo 2020.

The location of this urban upscale community has been deliberately chosen to appeal to potential investors and buyers, said the CEO of Montroe, Saeed Al Qatarmi.

He described Montrose to be a strategic project inspired by a blend of harmonious style and comfort living. The new project is sure to be another benchmark of excellence for Deyaar and emphasizes its continued industry leadership, he said.

Al Qatami said that individuals seeking to invest in Montrose can pre-register and express interest. Deyaar is offering flexi payment plans with minimal down payment, which is as low as five percent, he said.

Residents here can enjoy common amenities including landscaped garden, outdoor sitting area, kids’ play area and state-of-the-art gymnasium. Each of the tower will house a rooftop infinity swimming pool, a 24-hour concierge, an access control system, a fire-fighting alarm system, central air conditioning and CCTV surveillance.

Boasting of a health club and a restaurant, the hotel apartment will be equipped to offer high-speed internet connectivity, the company said in its statement.

Monday, August 18, 2014

MAF to build new Dh 275mn City Centre mall in Dubai

The Dubai-based retail, hospitality and leisure company, Majid Al Futtaim announced its plans to build City Centre Me’aisem, a community-focussed mall. At present, there are 13 City Centre malls in the region. The first phase of the latest City Centre shopping mall in Dubai will cost Dh.275million, the company statement revealed.

The retail mix of the mall would serve the immediate needs of residents and working professionals, said Executive Managing Director of shopping malls at MAF Properties, Dimitri Vazelakis.

Located within an area spanning one million square feet, the mall would be located in Me’aisem area at the Dubai International Media Production Zone (IMPZ), the site developed by Tecom Investments, spans 43 million square feet. The mall would be located at the intersection of Shaikh Mohamned bin Zayed Road in IMPZ and Al Khail Road.

The phase 2 of City Centre Me’aisem will cater to the population growth during the forthcoming Expo 2020, with emerging areas like Victory Heights, IMPZ, Jumeirah Golf Estates, Jumeirah Village Circle and Jumeirah Village Triangle, developing further.

City Centre Me’aisem will be built by Brookfield Muliplex, the international contractor. Construction of the new mall would be in two phases. Phase one will be ready by third quarter of 2015, offering 60 international outlets. The construction would allow scope for further expansions until 2020.

City Centre Me’aisem will include lifestyle brands, fashion, and a Carrefour hypermarket, spanning an area of 6,243 square feet with restaurants, fast-fold chains, restaurants, convenience stores, cafes and medical clinic.

The development forms part of Dh.3million investment by the company to expand its Dubai operations over the next five years. The Head of Research and Consultancy for UAE at CBRE, Mat Green, said that MAF’s new mall may fill the retail gap in IMPZ.

The mall may have local fashion brands, but, the focus will be on convenience stores. City Centre Me’aisem will serve residents of Jumeirah Golf Estates, Victory Heights, Jumeirah Village Triangle, Jumeirah Village Circle, Arabian Ranches and Motor City, apart from employees in IMPZ commercial zone, MAF said.

Monday, August 11, 2014

Royal Estates project officially launched in Jumeirah

The Dh.2.3bn Royal Estates project has been officially launched by Bollywood Superstar Shah Rukh Khan during an event held in Madinat Jumeirah in Dubai.

The development is a collaboration between Aristocratic Star, Pal Developments, and Pacific Ventures, a statement said.

The 2.3mn sq. ft. gated community is located in Dubai Investments Park, adjacent to the Expo 2020, and features 2000 units comprising two, four and five bedroom townhouses, apartments, boutique retail spaces, an office complex and luxury hotel.

Mr. Khan expressed his delight to be associated with the project and said that Royal Estates ensures uncompromised comfort, safety and elegance and state-of –the-art landscaped serenity that weaves a stellar community.

The Director of Pal Developments, Atiq Merchant, said that the Royal Estates, which is a unique project, promises to be a lucrative combination of residential, investment and commercial haven.

Tony Ashai, the celebrity architect, speaking about Dubai said that Dubai is an energetic city with a regal touch, which inspires elegance and stylised sophistication. The property market here is positive, and this is the time when business owners and investors seek to enjoy the plush vibe of the city. These factors have been taken into consideration when designing this project, offering a blend of homely comfort and luxury.
The project sales began on 7th August. The phase 1 of the project includes 400 units to be delivered during first quarter of 2015. The apartment units start at Dh.450,000 and townhouses from Dh.1.6mn onwards.

Tuesday, July 22, 2014

New gated community launched in Dubai Sports City

SOL Properties, a subsidiary of Bhatia Group has launched an exclusive gated community ‘Bloomingdale’ in Dubai Sports City. Offering prestigious lifestyle amenities in a superb location, this development comprises 72 units with four and five bedroom villas at affordable rates.

The location is in proximity to Sheikh Zayed Road, Mall of Emirates, Dubai Marina and Dubai Airport.
After the success of more than 250 projects, including small site developments and large government ventures, experts now present this remarkable community to residents of Dubai.

Bloomingdale’s 72 residential villas are equipped with elegant Italian appliances, spacious living spaces, open plan design, huge rooftop terraces, built-in wardrobes and premium fixtures and fittings. Safety and security of its residents have also been taken into account when planning the project.

The five bedroom villas have a built-up area of 3,331 sq. ft. with an additional 539 sq. ft. terrace space, while the four bedroom villas are spread across 3,195 sq. ft with 439 sq. ft of terrace space.

The development's show villa have been flocked by buyers with several of them attracted by the easy payment options that require a 10 percent down payment, 10 percent after three months and 80 percent on completion, towards March 2015.

SOL Properties has already successfully delivered several other townhouse projects like Iris Park, Mulberry Park, Valencia Park, Lotus Par, Tulip Park and Orchid Park in Jumeirah Village Circle and Silicon Avenue in Silicon Oasis.

The Bloomingdale project is excellent in terms of its well-designed units, layout and finishing, and is ideal for both investors and home-buyers with great potential for income, says Pavan Batavia, Director of Synergy Properties.

Further, the development, being located in Dubai Sports City, residents can also access other public amenities, including sports and leisure activities, and offers easy access to rest of the emirate.

Thursday, June 19, 2014

Dubai is safest in the world to invest in luxury properties: Damac

Dubai is one of the safest places in the world when investing in luxury real estate, given, its increased regulation and transparency, leading developer Damac Properties pointed out.

With growing interest in Dubai properties from African investors, Damac is launching a brief campaign across the region which highlights the investment opportunities in the emirate, with prices of luxury properties starting from $149,000.

As per the latest index by Knight Frank, Dubai recorded a strong growth last year, with rentals being 14 percent higher towards end of 2013, partly due to stringent investment regulation, which added to the perception of Dubai being a ‘safe-haven’ in the Middle East.

Dubai is also working towards creating a transparent process for buyers and tenants to increase their confidence in the market and make it easier for international clients to carry on business in the real estate sector in the emirate, said Niall McLoughlin, Senior VP, Damac.

Now there is increased investment from African buyers who seek to capitalise on the tax-free income and stable economy.

Based on latest rules in Dubai, developers should now provide four key documents to any buyer including the title deed of the project, details of Escrow account dedicated to the project, deal with main contractor and approvals from Dubai Land Department and RERA (Real Estate Regulatory Authority) to launch the project.

The Knight Frank report further said that prices for prime residential locations may rise by 15 percent this year, as they are still one-third below their previous peak. With Dubai’s announcement about World Expo 2020, prices will rise further, and tourism numbers would increase to 20 million over next six years.

The company also launched a dedicated website for investors who are interested in knowing more about Dubai, and the regulations and opportunities. The site also details latest trend in property market, apart from videos of most famous landmarks in Dubai.

Tuesday, June 17, 2014

New fee, regulations & restrictions to curb off-plan property sales

Dubai is planning to introduce new fee and restrictions to curb sale of off-plan properties, the International Monetary Fund (IMF) revealed.

As per the latest IMF report, Dubai will be imposing additional fee and restrictions on resale of off-plan properties, as that would further discourage speculative demand.

The report said that the increase in real estate registration fee from 2 to 4 percent last October, and introduction of regulatory measures to ensure orderly market conditions for new real estate development, has been a welcome step.

When looking at the past international experiences, often countries that faced property booms repeatedly raised real estate fee and differentiated them with criteria such as buyer’s residency, use of property for occupancy or investment, or time elapsed before resale, etc.

The measures that the Dubai Land Department (DLD) plans to adopt is not yet known, sources in the market say that the move will be to introduce slab-wise registration fee.

The plan is to introduce new fees/measures on a sliding scale, and that is what the market requires in case of speculative activity, said Craig Plumb, Head of Research, JLL, MENA.

Property prices are going up, mostly driven by speculators in off-plan projects. More regulations may be required to discourage speculators, he said.

The Chief Executive Officer of PropSquare Real Estate, Parvees Gafur said that the new fee would be good for the market in the long-term, but the market is no longer driven by speculators, and mostly involves the end-users.

Moreover, many major UAE developers like Emaar, Aldar and Nakheel are not allowing investors to sell a property unless they pay 40 to 60 percent of the property value.

The UAE Central Bank, early this month, said that low residential rental yields in Dubai and Abu Dhabi indicates the imbalances and overheating in the property sector, with both emirates showing current average rental yields of 70 and 130 basis points respectively below historical averages, which indicates imbalances and an overheating real estate market.

The UK-based research house, Global Property Guide, said that Dubai has topped the list of house price survey for the fifth consecutive quarter, with house prices rising 31.57 percent during the year to first quarter 2014 and 9.58 percent in first quarter alone.

Tuesday, June 10, 2014

Cancelled projects in Dubai officially listed

The Dubai Courts has placed a list of developers and their cancelled projects. This is the first time that Dubai’s Real Estate Regulatory Agency (RETA) is officially publishing the list of cancelled projects.

The court’s website lists 36 cancelled projects by eighteen developers.  Here’s the list of developers and cancelled projects:

Remah Holding Limited

  • Tower 88

High Rise Properties LLC

  • Dorna Tower
  • Orchid Residences
  • The Heights-Golden
  • Waves Business Tower
  • The Heights-Silver
  • Rotating Residence
  • Heigh Rise Boulevard1
  • Heigh Rise Boulevard2
  • Alternative Capital Invest Gmbh
  • Wings Of Arabia
  • Khyool Investment Llc
  • Abjar Tower
  • Faras 2

Makaseb Properties

  • Rufi Tower (Quattro)
  • Archery Tower
  • Rufi Lake View
  • Quattro West

Dheeraj & East Coast Llc

  • Cascade Manor

Merwess Abdulaziz

  • Azizi Feirouz I
  • Azizi Feirouz II
  • Azizi Feirouz III
  • Azizi Fountanne Tower

Bux Holdings Limited

  • Beti Ul Funoon

Cliff Dwellings Enterprises Ltd

  • Global Golf Residence

Parshwa Holdings Limited

  • Sapphire

Galadari Investment Office Limited

  • G-Office Tower

Escan Real Estate PJS

  • Escan Tower

ME Development Llc

  • Windsor Residence

IR Investments Holding Company Limited

  • Tonino Lamborghini-Elettra Residence

Orbit Holdings Ltd

  • Orbrit Holding

Al Zahra Properties

  • Eden 1
  • Eden 2
  • Sunset Gardens B
  • Sunset Gardens A
  • Sunrise 2

Hampstead & Mayfair Development Limited

  • Hampstead Residences

Zenith Real Estate Development Llc

  • Zenith Tower A3

Dubai Courts, on its website, states the committee will begin its first stage of agenda on the above-mentioned list of cancelled projects. The last date for submission of the manual or electronic applications by investors is 31st August 2014.

Investors can register manually by visiting Dubai Courts in the evenings from 2.30 pm to 7.30pm on the main building central services hall on the first floor or electronically by clicking on the name of the project and then filling in the data, the Court said.

Back in July 2013, Dubai issued Decree No.21, establishing a special legal committee for liquidation of cancelled real estate projects and settlement of rights and disputes pertaining to such projects.

Earlier, RERA officials had refused to release list of cancelled projects in Dubai, as the investors were personally notified about cancellations. Now, property experts have called for release of information on cancelled projects.

Further, RERA data reveals 187 projects have been since the beginning of 2009, with 253 projects on hold, and 232 projects to be completed soon.