Saturday, April 28, 2007

Golf side Victory Heights villas released

The final release of the premium villas in the Victory Heights golfing and residential community should start in August. The developer is waiting for the completion of the five ‘show’ villas on site for launching the next Phase.

Secondary market activity for Victory Heights has been good which we believe is healthy for the market. In some villas, the owners want to hold on and it suits us just fine. We are not too keen in going for the investor-buyers, always prefer end-users as we pride in building homes, not houses.”

The official confirmed that their prices will be dictated purely by ‘current trends’, “As a developer, we do not see the need to affix a substantial premium even though the project has been extremely well received in the earlier launch phases,” Abdulla adds.

“Victory Heights is now a concept that can be franchised. It could even be developed by us in other locations.” The Victory Heights development will have a final cost of Dh2.7 billion which reflects the quality of the development.

Frayland was recently awarded the contract to build 57 villas at the development. Negotiations are on with others for other key contract awards. Wade Adams and Septech are some of the other names closely associated with the development. Victory Heights covers 25 million square feet within the wider Dubai Sport City.

[Source - Property Weeky]

Friday, April 27, 2007

L&T wins construction work of Dh.177.6m residential projects in Dubai

India’s Larsen and Toubro (L&T ) has won a Dh.177.6 million (Rs.2billion) deal from Nakheel for construction of residential project in Dubai. The project will be under the execution of ECC, the construction division of L&T.

The project comprises construction of luxury villas and other infrastructure facilities such as club house and children’s play area at Jumeirah Islands.

The entire construction work, which involves construction of 31 luxury villas, is due for completion within 548 days from the day of commencement of works.

This is for the third time that, Nakheel, the leading project developer in UAE, has been awarding projects to L&T. The other two being the middle bridges at the trunk of Palm Jumeirah Island which has already been completed, and the Mogul Gardens.

Larsen and Toubro Limited, the $4 billion Engineering and Construction Company with global operations, is one of the most respected and largest companies among the private sectors in India.

Al Badia Residence and Marsa Al Khor in Dubai Festival City

The mega project, Dubai Festival City, which is being constructed covering 1300 acres of land alongside Dubai Creek, is all set to cater to the needs of millions of tourists and 70,000 residents, and is due for completion by 2015. On completion, the Festival City will have 21,000 luxury units, which will be home for 70,000 people. The developers, Al Futaim group, currently have no intention of selling the units and are planning to rent out the units.

The Al Badia Hillside Village, which is basically a 1400-unit complex, features apartments with one, two or three bedrooms and townhouses with three or four bedrooms. These are likely to be ready by September 2007, latest. Here, the residents can enjoy the Al Areesh Club that includes swimming pool, tennis courts, medical center, bistro, supermarket and gym.

The Al Badia Residences, the phase one of which was already completed during 2005, comprises a community with 39 townhouses and more than 200 apartments. The Phase two development includes two and three bedroom apartments and town homes with three or four bedrroms in Mediterranean style. It has similar facilities as in Al Badia Hillside Village, and the third phase is due for completion by 2008.

Marsa Al Khor, is a waterfront community with a capacity to accommodate 14,000 people in its high-rises and takes the form of a residential extension from the Marsa Al Khor Office Park. These one to four bedroom luxury apartments are fully under the management of Inter-Continental Hotel. The Marza Plaza, apart from featuring a 900meter beach, will also have several shopping centers, restaurants and other services.

The Festival Waterfront and Festival Power Center, on completion, will feature 550 shops, Ikea Center and HyperPanda supermarket among twenty other anchor stores. It also includes the Dubai Gold Market place between the Power Centres and Waterfront.

The thirty storey Festival Tower will have 530,000sq ft of office space, and connects the Festival Waterfront Center, Crowne Plaza and Intercontinental hotels with a parking space for 13000 vehicles. The Intercontinental hotel with 501 rooms, and Crowne Plaza with 316 rooms will be the first hotels of Festival City, and are connected by the Waterfront Center.

Thursday, April 26, 2007

Skyscraper developers ordered to abide with fire safety regulations

The developers constructing skyscrapers have been ordered to abide by the fire safety regulations, else, they are liable to suffer loss of their projects. This was announced during a conference on Fire Prevention in High-rise buildings, which was called following the recent series of blazes that occurred at construction sites.

Major Rashid Al Massam of Civil Defence in Dubai mentioned that in spite of the recent deaths due to fire accidents, certain companies are still reluctant about implementing the necessary safety requirements.

Al Massam mentioned that random inspections will be conducted to ensure the strictness in regulations and warned the contractors about losing their projects in case the required standards are not met with.

Regulators including the Dubai Municipality, Jafza, Civil Defence, Tecom are given the authority to penalize the companies in case of any violations. The developers have been asked to keep in touch with the regulators, so that adequate safety requirements can be maintained.

Rotana hotels to expand 100% in three years

The Abu-Dhabi based regional hotel operator, Rotana Hotels and Resorts, says that it is likely to begin operating 28 new hotels, and with that the total number of its properties will grow to 53 by the year 2010.

According to analysts, this expansion would place Rotana in the list of leading global hotel chains, reflecting the potential of such local hotel management firms.

Rotana is expecting a 36 percent boost in sales and revenue of Dh.1.35billion during the current year (as against Dh.992 last year). The Executive Vice President and Chief Financial Officer of Rotana, Nael Hashweh, mentioned that the occupancy rate of Rotana is expected to reach 90 percent in Abu Dhabi and Dubai by the end of this year (as against the usual 88 percent in Abu Dhabi and 84 percent in Dubai).

Currently, Rotana manages 25 properties in the region, and has already signed about eleven management contracts in UAE, Qatar, Oman and Jordan. It also has seventeen properties under development in the region. Rotana plans to have a minimum of one property in each major Arab City.

Rotana officials has announced that they plan to include additional 1500 hotel rooms in Dubai and 750 rooms in Abu Dhabi during the current year. Rotana’s new expansion plans include the 300 rooms Hotel Centro at the Sharjah Airport, Mina Al Arab Rotana Resort and The Cove Rotana Resort and Spa at Ras Al Khaimah, Hili Rotana Suites at Al Ain and Saadiyat Rotana Resort at Abu Dhabi.

In addition to this, the Dh.8billion development which was recently launched at the Capital Center will have a four-star hotel with three hundred rooms, a suite property with 200 rooms and 300 rooms Centro by Rotana. Rotana is also expected to operate its second property in Qatar, and a four-star hotel at Doha by 2009. Another 300-room centro expected to come up in Sohar, will make way for Rotana’s entry to Oman. It is also expected to have a second hotel at Jordan with 400 suites which is likely to be inaugurated by the year 2009.

Wednesday, April 25, 2007

Two new hotels to be launched by Reef

The Dubal based investment company, Reef Real Estate, is expected to launch two new hotels this year, as part of its two mixed-used developments in Dubai. The hotels will be operated by Corp Executive Hotels.

Reef already launched a Dh.120million four-star Corp Hotel in Barsha area of Dubai with ninety rooms, which was inaugurated recently. Another Corp hotel has been recently launched at Business Bay, which is also a part of Dh.350million commercial shopping complex.

Construction of the hotels is likely to commence during October this year, and the entire Offices Tower project and Corp Executive Hotel project is expected to be completed by next August.As said by Reef Managing Director, Shaikh Ahmad Mohammad Al Nahyan, the two new hotels will be constructed at Dubai Waterfront and Jumeirah South Village.

Corp, being a joint-venture between Coral International Resorts, Hotels, Spas and Reef, will operate as alcohol-free hotels.

Dh.1billion project launched by Al Futtaim at the hi-tech hub of Dubai

A new development project worth Dh.1billion has been launched by Al Futtaim Real Estate, at Dubai Silicon Oasis, the integrated hub for high-tech industries.The development which is expected to cover an area of 62,820 Sq.mts., will be built in three phases. The first phase, worth Dh.200 million will be completed by mid-2008.

The project comprises residential and serviced apartment blocks, recreation blocks, car parks at the ground floor, surface car parks, external works, landscaping and other service utilities. In addition, the integrated circuit design centers, production lines and R&D facilities offer a cost-effective and quality model to the companies.

Muammar Khaled Al Khatheeri, the Director of Planning and Construction, Dubai Silicon Oasis Authority, mentioned that they are making every possible effort to maintain a high standard of living for people working at hospitals, shopping centers, academies, leisure and health facilities in Silicon Oasis. About Dh.40m has already been spent on landscape so that the quality of life in the apartments, hotels and villas are enhanced and the right environment for a luxurious lifestyle for people of Silicon Oasis could be provided.

The project will be executed by Al Futtaim Real Estate, under regular inspection of Dubai Silicon Oasis Authority. The General Manager of Al Futaim Real Estate, Nasser Mahmoud, describes Silicon Oasis, as an exciting project representing the concept of “city within a city” and provides all that is required for a life of style and comfort.

He added that, in addition to the central technology park and its business facilities, inclusion of the residential factor offered by Dubai Silicon Oasis Authority, will bring in added value to the kind of community lifestyle.

Monday, April 23, 2007

Tamweel mortgage will cater all market segments

Islamic mortgage lender Tamweel said yesterday it is catering to all the market segments from mid to high income and not just the premium segment.

Tamweel partnering with developers who believe in offering the best to end-users as our job is to protect them. Also anounced a mortgage plan for apartments in the Dh12-billion Discovery Gardens project being developed by Nakheel.

The company will provide 93 per cent finance for 1,200 apartments in the project’s Mediterranean section, with down payments starting at Dh35,000 for studios and Dh60,000 for one-bedroom apartments. These payments are inclusive of arrangement fees, and finance is available for up to 20 years.

Discovery Gardens, located just off Sheikh Zayed Road, comprises 291 buildings and houses 26,000 apartments. Covering an expanse of 26 million square foot, the development will include six themed communities inspired by garden living such as Zen, Mediterranean, Contemporary, Cactus, Mogul and Mesoamerican courtyard gardens.

Saturday, April 21, 2007

Festival City retail and office space launch on July

The first retail phase of Dubai Festival City will be completed in July this year, providing shoppers with 2.1m square feet of shopping, dining and entertainment. This will encompass 550 shops, 90 restaurants and a 12-screen cinema. Festival City is situated on the banks of Dubai Creek beside the newly opened Ras Al Khor Bridge.

Dubai Festival City
The 1,300-acre project will be completed in 2015, with 12 per cent already finished. On completion, it will feature three million square feet of office space. The City’s first commercial property, the 550,000 square feet Festival Tower, will be released in July. More than two thirds of this office space has so far been rented.

Miles said developers Al Futtaim Group would see how the market develops before finalising plans for further commercial developments. “The reaction has been very positive. We are close to the airport and minutes from Business Bay.

“One of the major issues for office workers is getting something to eat at lunchtime and having nearly 100 restaurants in Dubai to choose from is very attractive,” said Miles. Festival City’s first hotels will open in September, with the Crowne Plaza and the Intercontinental providing 800 rooms between them.

Four more hotels will follow, including Four Seasons, to boost the City’s room number to 2,500. Miles admitted to minor delays because of difficulties sourcing building materials. “There is no place like Dubai in terms of construction of new projects so it has been a constant challenge for materials. Sometimes it has been a struggle, but in the final analysis we have come up with an excellent project,” he added.

The first two phases of the City’s 21,000-unit residential development have been released to tenants. Al Futtaim will retain ownership of all properties. On completion, Festival City will house more than 70,000 people.

A long-term complaint of Dubai’s boat lovers has been a lack of mooring space and the Festival City Marina will go some way to alleviating this when it opens later this year. It will have space for 70 full time berths, plus 100 spaces for transient boats, enabling Dubai’s elite to moor up for dinner or shopping. Aside from shopping and leisure, Festival City is also expected to become a venue for entertainment and special events.

Purpose-built areas ranging from the waterfront promenades to the Festival Square will play host to international entertainers and local talent at the City.

[Source Emirated Today]

Friday, April 20, 2007

Dubai rentals demand higher than supply

Dubai rental demand remains higher than supply and that a significant drop in rents is wishful thinking. Jumeirah Beach Residence recently announced that 6,500 units are soon to be handed over, targeting approximately 20,000 residents. Other projects, such as International City, have already launched some phases – 15,400 units will be delivered by the end of this year. The Discovery Gardens will deliver 17,500 by year end.

The great real estate debate looks set to run and run.With so much supply entering the market, where are the new tenants coming from? Is new property being held back to maintain values, and if so, how long will this last? It is nearly impossible to live in Dubai these days and avoid being asked these questions. And property consultants, of course, are expected to have all the answers.

So here goes. Keeping units vacant to try to manipulate prices does not help anybody in the long run, so withhold ing property is not practical and can only be short-lived. A softening of the market is possible given the number of villas and apartments now opening their doors, but landlords resist as long as possible so any change therefore is unlikely to be immediate.

Publicly available market research, economic forecasts and population trends suggest that some correction is on the horizon, but we are talking medium-term and the impact will vary depending on which sector you are looking at.

There has been a lot of development in high-end residential real estate, but there is still significant demand for more modestly priced accommodation. As Dubai continues to expand, location will also become a more significant factor. Landmarks like Burj Dubai, The Palm Jumeirah and the city’s free zones such as DIFC will create their own dynamic of supply and demand.

The hectic pace of life in Dubai alone suggests that a major correction in rents is hardly imminent. The arrival in the Emirates of some of the world’s largest property companies is also a vote of confidence in the local market.

For years people have been asking when Dubai’s economic growth will slow, so it comes as no surprise that the state of Dubai real estate should provoke an equally long-running debate. My bet is that Dubai property will prove as resilient as its economy.

Dubai roads will connect to Business Bay

Some of Dubai’s main roads will be soon be crossed by a canal to connect the prestigious Business Bay project with the Gulf. Business Bay has been planned as a new commercial and business cluster built on the banks of an extension of the Dubai Creek.

Under new plans approved by His Highness Sheikh Mohammed bin Rashid Al Maktoum,Vice-President and Prime Minister of the UAE and Ruler of Dubai, a 2.2kmlong canal will connect the Creek extension with the Dubai coastline.

The development plan means that parts of Sheikh Zayed Road, Al Wasl Road and Jumeirah Road will be under water. Yesterday Sheikh Mohammed approved plans drawn by the Roads and Transport Authority (RTA) for new structures along these three roads, which will eventually act as bridges over the planned canal.

The water canal, which will be wider than 100 metres, will pass through Sheikh Zayed Road, Al Safa Park, Al Wasl Road, Jumeirah 2, and Jumeirah Road. The massive project is scheduled for completion by 2010.

According to the RTA plans, the Sheikh Zayed Road bridge over the canal will have six lanes in each direction.The bridges on Al Wasl and Jumeirah Roads will have three lanes in each direction. The bridges will be 8.5 metres high over the canal.

The cost of the road projects in the area will be more than Dh1 billion, said Mattar Al Tayer, CEO and Chairman of the RTA Board. The RTA will also be building roads parallel to the canal in the Jumeirah and Al Safa Areas. Pedestrians will be able to cross via pedestrian lanes on the four bridges.

In addition, the authority will build stations for marine public transport along the banks of the canal. There are plans to develop green space and recreational areas along the canal banks. Dubai Business Bay is intended to maintain Dubai as the region’s business capital and developers promise it will be similar to New York’s Manhattan and Tokyo’s Ginza business centre.

Wednesday, April 18, 2007

Da Vinci Tower brings new concept of rotation technology

A different version of the Da Vinci code is being unravelled in Dubai with the concept launch of a tower in which apartments can rotate according to the desire of the resident.

It gets even better — the movement can generate the energy required for the building and even its immediate neighbourhood. The concept is that of Italian architect, Dr David Fisher, who believes it can be translated into bricks and mortar.

“Buildings should adjust to nature, so many have very little to do with life today. I wanted to create a building which is redesigned every day,” he said at an event held to mark the announcement of the 300-metre plus Da Vinci Tower in Dubai last week.

Powered by wind turbines and solar panels it will have enough surplus to provide energy to around five towers of similar dimensions. Fisher, the founder of Rotating Tower Technology International Ltd, is in talks with potential local partners to finance the first tower, which could include a super-luxury hotel. A decision on the final design and location is expected in May, when the developer should be announced, according to Dr Ugo Montevecchi, Chairman of the Dynamic Architecture Club.

Even now, the Fisher project has convinced some serious players in the industry. The structural engineering company LERA, which is involved in projects such as the Dubai Metro, has joined Fisher’s Dynamic Architecture Club, which is spearheading the Da Vinci Tower.

The design and engineering aspects have been patented. Twelve similar towers are planned in major cities. Again Dubai will contribute to all of them, as a pre-fabrication plant in Jebel Ali is planned to produce 90 per cent of the tower’s requirements.

Individually designed modules, usually 12 per floor, will be shipped to the other towers. Only the concrete core remains on-site. Thus the 25 per cent cost surcharge versus building towers is reduced to 5 per cent. The monolithic core bends with earthquakes and will never collapse like a house of cards, according the creators.

Da Vinci Tower in Dubai will have a mechanism that allows each floor to rotate autonomously through voice activated technology. Residents can harness the daylight and change their panorama by selecting the speed of a complete rotation, which lasts one to three hours.

The external shape and profile of the tower change constantly. due to individual rotations. Twelve modules per floor will arrive at the site complete with electrical, plumbing and air-conditioning systems ready for use.

The modules can then be mechanically assembled at the rate of one floor every seven days. The skyscraper will have around 68 floors. A premium hotel, offices, apartments and five villas on the top floor are envisaged.

Tuesday, April 17, 2007

Tameer holding awarded projects to Rajhi Projects

Sharjah-based Tameer Holding yesterday said it has awarded a contract worth Dh522 million to Al Rajhi Projects & Construction to build phase one of the Al Ameera Village project in Ajman. Al Rajhi will construct 41 residential buildings in Al Ameera Village, with work beginning this month.

“Al Ameera Village is one of the most important developments in the UAE right now. We look forward to a long and fruitful partnership with Al Rajhi,” said Omar Ayesh, President, Tameer Holding.

When completed, Al Ameera Village will contain a five-star hotel, shopping mall, and residential and business facilities. With extensive amenities for families and executives, it is located off the Emirates Ring Road close to both Sharjah and Dubai.

“Ajman is now a market in itself, with other property developers becoming increasingly attracted to the emirate. But Tameer Holding was the leader in penetrating this relatively underdeveloped emirate,” Ayesh said.

Ziad Al Mous, General Manager, Al Rajhi, said the plans for Al Ameera Village show the project will “accelerate the progress of Ajman as a whole due to its improvement of the local infrastructure, its general services and the international standards of its architectural design”. [Emirates Today]

Thursday, April 12, 2007

Building boom increase raw material cost 30 percent

Building raw material prices are soaring again, thanks to a continuing boom in the global real estate industry. And the Middle East is not immune, with prices of construction products expected to increase by almost 30 per cent this year.

In the last year, steel and wood prices have gone up by 25 to 30 per cent. And this trend is likely to continue due to high demand for raw materials from India, China and other Middle Eastern countries.

According to research commissioned by the company in 2005, the regional raw material industry was worth Dh40 billion, while it was valued at Dh18bn in the UAE.

Getting raw materials on time to meet their deadlines is the biggest challenge regional contractors face. Dubai in particular has seen thousands of properties sold in the past few years purely on the strength of an artists impression and a scaled down model positioned in a busy shopping mall.

The Association of Professional Interior Designers (APID) believes competition among regional real estate developers is spurring high demand for innovative flooring to help differentiate interiors.

According to the association, regional property developers are increasingly looking for ways of differentiating their product by creating greater interest in flooring, hard surfaces and the materials, colours and finishes that contribute to versatile interior designs.

The concentration of mega projects in the UAE is strong and has placed emphasis firmly on design. The region is rich in creative talent, and this boundless imagination combines with visionary clients to pro duce some of the most fascinating interior spaces.

It seems that in design terms, bigger is often regarded as better, which may result in huge interior spaces. The bigger these spaces get, the more they become a critical design component, and to fill those spaces correctly, the more innovative flooring solutions are sought.

The next markets to witness this rapid growth will be Qatar, Oman, Kuwait and Morocco, he adds. Regional demand for aspirational and functional interior design is extremely intense and there is need for new products and techniques.

APID believes increased regional interiors activity also means the association needs to press for best practice standardisation through the Middle East to ensure quality standards. The total current demand for power cables in the country is more than Dh1bn.

[Source : Emirates Today]

Dubai Sports City development cost over $3bn

Sports City yesterday awarded contracts worth Dh830 million to a joint venture of Dubai-based Arabtec Construction and German company Max Bogl for construction of two stadiums.

Dubai Sports City
The total development cost of Dubai Sports City, the world’s first integrated purpose-built sports city, is expected to touch $3.2 billion (Dh11.7bn) when it is completed in 2010. It will be an increase of almost 30 per cent since launch in March 2004. The increase to soaring raw material prices and an expansion of the multi-purpose outdoor stadium to accommodate 60,000 people from the previous capacity of 25,000.

The joint venture will design and build a 60,000-seat multi-purpose outdoor stadium and a 10,000-seat multipurpose indoor stadium. The stadiums will be designed by gmp, an international firm that designed the Olympic Stadium in Berlin and the Commerz Bank Stadium in Frankfurt.

The multi-purpose stadium will fully comply with specifications for international football, rugby, American football and athletics events.

The indoor stadium will allow for a wide range of sporting events such as ice hockey, basketball, tennis and volleyball. The venue will also be capable of hosting concerts and other major public gatherings.

A 25,000-capacity cricket stadium and a 5,000-seat hockey stadium, both of which are due for completion in early 2008, complete the quartet of major stadiums at Sports City. The first phase will be completed by the first quarter of 2008, and the residential components by the end of 2008 and 2010.

Tuesday, April 10, 2007

Capital Bay Tower from Damac Properties

Damac Properties yesterday launched Capital Bay Towers, its fourth project in Dubai’s Business Bay. Capital Bay will consist of two 19-storey towers featuring office, residential and boutique retail space.

The towers will feature four levels of parking, swipe access, high-speed internet, business lounge, reception desk, and 24-hour security.

A well-designed workplace with a comfortable indoor en vironment leads to a workforce that is not only healthy and happy but also more productive. Innovative, state-of-the-art facilities are tools that increase productivity.

Damac’s first three Business Bay projects were Executive Bay, Business Tower, and XL Tower.

Dubai Waterfront being released to investors

The first section of Dubai Waterfront – the world’s largest waterfront development – is now being released to investors. Master developer Nakheel began the four-month handing over process of the Madinat Al Arab yesterday.

The first phase, which consists of more than 200 plots, was sold for Dh13 billion in July 2005. Nakheel has sold 70 per cent of the plots in the first phase, with the remaining 30 per cent retained for its own developments.

Investors will this week attend a three-day workshop where they will be briefed on the site’s planning and building approval processes. A process map, explaining the different stages of construction, is also provided.

The workshop sessions will be followed by one-on-one meetings between each investor and a number of specialist consultants such as master planners, Dubai Electricity and Water Authority officials, and environmental regulation advisers.

Ensure Dubai Waterfront is a very environmentally sustainable development, with, a clear recover recycle reuse strategy and consideration of environmental concerns and technologies at every stage.

Sunday, April 08, 2007

Pauling sanctioned with Dh.400m credit facility for construction of villas

Pauling Middle East Company, a pioneer in roads and building construction in the UAE, has been sanctioned with Dh.400m syndicated credit facility under the leadership of Emirates Bank.

The facility will be used for construction of 366 villas at Falconcity of Wonders in Dubailand development.

The project will take about a year and a half for completion, beginning 20th February 2007.

Emirates Bank is the bookrunner, underwriter and lead arranger of the transaction. The other participating Banks include the Bank of Baroda, State Bank of India, National Bank of Abu Dhabi and Mashreq Bank.

The General Manager of Emirates Bank, Abdul Wahed Al Fahim has mentioned that this is one of the prestigious transactions for the Bank, as it emphasizes their long on-going relationship with Pauling Middle East.

Pauling is an arm of the Ahmed Khalifa Al Mazroui Group in Abu Dhabi. The group comprises a total of fourteen companies that focus on various segments such as construction, infrastructure, travel and tourism, hospitals, pharmacies, aluminium works, building materials, transportation and aluminium works.

Saturday, April 07, 2007

Growth in Dubai Mortgage Market help buyers

UAE is seeing a surge in its mortgage market, with more players offering a diversity of mortgage-related offerings. This is a good thing for the country and the people who live here. According to one leading mortgage provider in the region, total mortgage loans in the UAE are set to reach Dh20 billion by the end of this year. The market could hit Dh100 billion by the end of the decade – almost a ten-fold increase since 2004.

The UAE’s growing mortgage market is reflected in the number of home-loan providers setting up operations here. Until recently, there were only a handful of mortgage companies in the country, and the sector was dominated by local banks. Today, international financial institutions are lining up to take advantage of the lucrative business opportunities available in the region.

More competition, in turn, will lead to more attractive loan packages for buyers, which will fuel more interest among prospective homeowners, which will increase competition further, and so on. It is the best possible cycle and promises to provide an added boost to the local economy.

The reason for this is simple: An increase in mortgage availability will necessarily open up the housing market to more buyers, which will increase construction, encourage foreign direct investment, stimulate the banking sector and have a knock-on effect across many other areas.

Equally importantly, though, making home ownership more widely available will promote stability and establish ties between a country and its residents that go beyond the financial. The fact that more people are taking out mortgages signals an increase in public trust in the country’s economy and its institutions. It also suggests that people are here for the long haul. And it’s not only Dubai where this dynamic is unfolding – other emirates too are seeing a rise in the mortgage market.

As rents continue to rise and mortgage payments become more attractive, the current upward trend is sure to continue. This is good news in ways that go beyond economic considerations. No longer will owning a home be the privilege of the wealthy. No longer will people living on lower incomes be consigned to a lifetime of paying rent.

[Source : Emirates Today]