Friday, July 28, 2006

Middle east set to be third largest property investor

Middle East spending on global real estate will surge 50 per cent in 2006 to $15 billion, making the region the world's third-largest foreign property investor, according to a top industry firm.

Tony M Horrell, international director for Jones Lang LaSalle, told Gulf News record oil revenues of the Gulf countries and the diversification of regional economies is leading Middle East investors to make significant investments in property outside their home markets.

"After a few years of absence, Middle East funds are again investing heavily in the US, followed by Europe."

According to Jones Lang LaSalle's latest Global Real Estate Capital Report, Middle East investors spent nearly $6 billion in buying foreign commercial real estate in the first half of 2006, $4 billion in the US and $2 billion in Europe, mainly the UK.

"My estimate is that this figure for the Middle East will get to $15 billion by the end of the year on the basis of the transactions that are under way," Horrell said.

That would make the Middle East the world's third-largest buyer of commercial real estate in foreign markets after the US and Germany, he added.

Jones Lang LaSalle, which recently acquired Dubai's RSP Group, has identified the GCC region as a key source of global capital against a backdrop of the rising investment by Middle Eastern investors in international real estate markets. The main buyers include private equity funds and family offices.

The year 2006 is also on target to be another record year as total direct real estate investments approach $600 billion, up from some $480 billion in 2005, according to Jones Lang LaSalle.

[Gulf News - October 6, 2006]

Saturday, July 15, 2006

Property prices in Dubai to stabilise within two years

Dubai's leading real estate experts say spiralling property rents and prices are likely to stabilise over the next two years.

They said the current surge in property inflation is a temporary situation caused by Dubai's rapid rate of growth out-pacing the supply of residential and commercial property.

A recent closed forum debate, which featured more than 70 leading players in the real estate market, also discussed the recent introduction of the property law. Speakers said it would lure more international real estate investors to look seriously at Dubai and provide a solid foundation for expatriate, national and regional buyers to consider Dubai as a long term-investment option.

But according to Adel Lootah, executive director of the Dubai Property Group (DPG), which organised and hosted the meeting, the issue of local market forces dominated the discussion.

"When we held this forum a year ago, the main issue was the property law. Now people are looking at rates of supply and demand," he told Gulf News.

[Gulf News - September 15, 2006]

Friday, July 14, 2006

20,000 units in International City by this year-end

Developer Nakheel yesterday announced that roughly 20,000, or three-quarters of International City’s 27,000 units, will be handed over by the end of the year, a move that could have an impact on rents in the emirate. “Nakheel is on schedule with the construction and development of its International City project,” said International City general manager, Rashid Al Helli.

“We have already finished work on the project’s infrastructure, such as roads, internal routes, lighting installation, electricity and water.The districts are being constructed phase by phase. We expect to finalise most of the residential buildings by the end of 2006 and are starting a phased handover of completed areas.The remaining buildings will be completed by 2007. Phase One of Al Warsan Lake development has also been completed.” The news comes as Dubai residents reel from a doubledigit growth in rents, despite a 15 per cent cap that is expected to expire by the end of the year. Analysts believe that the pressure will ease once other projects such as Jumeirah Beach Residence, Nakheel’s Palm Jumeirah and Jumeirah Lake Towers and some parts of Emaar’s Burj Dubai developments come on line over the next few months.

“We are hoping a number of large key projects will go some way to satisfying the overwhelming demand for low budget properties in Dubai – at the moment there’s a dire shortage,” said Better Homes spokesman Mark Humphries.

International City combines commercial, residential, retail and tourism interests. The project has attracted strong interest from local, regional and international investors, including retail giants, multinational compa nies, real estate developers, regional and international commercial businesses, property investors and homeowners, according to the firm.

Humphries expects Dubai’s rental and development market to become more competitive, as a result of these developments.

Sunday, July 09, 2006

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Welcome to the Estates Dubai Blog! Main goal of this blog is keeping you informed and updated with the current real estate market conditions in Dubai and the other Emirates in UAE like Abu Dhabi, Sharjah, Ajman and Ras Al Khaima. Topics includes latest industry news, property prices, hot new developments, updates of current developments, the resale market and practical tips on the buying and selling process. We have new posts being added several times a week so check back daily.

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Wednesday, July 05, 2006

UAE northern emirates lights are shining bright

Northern emirates are generating plenty of excitement in the real estate industry, and many residents are relocating away from Dubai.

But, in truth, the pace of construction activity in areas such as Ajman and Ras Al Khaimah is neither a challenge nor a threat to the maturing market of its neighbouring emirate. The ambitious developments taking shape around Dubai will be complementary to the overall profile of the UAE as a leisure, residential and business destination. Ajman’s current optimism is the result of combined forces. Expected clarification of leasehold ownership, comparatively cheaper rents, larger living spaces and the ever increasing population have all driven demand in the emirate.



Whether the Northern emirates represent a better investment than Dubai at the moment depends on the individual needs of the buyer. At present the leasing market is very strong, especially for commercial space, as large companies are moving supporting office divisions out of Dubai.

Needless to say, the lack of supply and increasing residential and commercial property prices in Dubai and Sharjah are pushing demand up for the other emirates such as Ajman and Ras Al Khaimah.

As far as legislation goes, Ajman does not have a freehold law as yet, but one is anticipated within the year to coincide with the main property law.



Ajman is an untapped market: land is cheaper and its easy access to the Emirates Road makes it a perfect alternative for those who cannot afford Dubai. Ras Al Khaimah also holds great potential, targeting a different marketplace and lifestyle in comparison to Dubai. We see more holiday getaways, resorts and investments from residents who want a second home away from the city.

With the entire country undergoing change and growth at the same time, it is difficult to say where the market is headed. But, we think this growth is positive as it will help ease the pressure (and traffic) off Dubai, helping other emirates prosper as well.



[Article from Emirates Today on October 5, 2006]