Thursday, December 27, 2007

Swift progress of construction work at Sobha Ivory I and II

Shobha Ivory Tower
Sobha Group, the well-known Indian-based realty developer, is making swift progress with its first two commercial projects, recently launched in Dubai.

The construction work is progressing in full swing at the Sobha Ivory I and Sobha Ivory II towers at Business Bay, as the Indian realty giant continues to leave its impression in the Middle East market.

The sales of Sobha Ivory I and Ivory II real estate projects were complete within 8 months, which indicates the growing popularity of Sobha with investors and end-users. The iconic and modern business towers offer commercial and retail space that has been sold on a freehold basis.
The Vice Chairman of the Group, Ajay Rajendran, said that Sobha Ivory I and II have marked the entry of the group into Dubai, as a property developer, and that they are thrilled by the phenomenal success of the projects, which were sold in record time.

Khuyool to invest in 13 realty projects in Dubai totaling to Dh.3bn

Khuyool Investments has announced an investment of Dh.3billion in about 13 real estate projects in Dubai, revealed top officials of the company.

The Chairman of Khuyool Investments, Fahad Ali Moosa, said these include 10 projects, with five high-rise towers in Jumeirah Village South, and five mid-rise buildings. There will also be three towers being built in the Downtown Jebel Ali, as this is the beginning of a long journey.

He continued - Our first project, the Abjar Tower, with 64 storey, has received tremendous response from the market, and we are confident that the demand would continue to drive our future projects.

The company has been active in the Sharjah real estate sector for quite some time, and has just entered the Dubai market.

Strong housing demand, coupled with high oil price and massive investments in infrastructure is drawing investors to Dubai's real estate market.

Tuesday, December 25, 2007

Bavaria launches Sandoval Apartments; signs loan agreement with Mashreq

The German boutique developer, Bavaria Gulf, has announced the launch of first phase of 'Sandoval Apartments' at Jumeirah Village, which had earlier made its grand entry into Dubai realty sector through the launch of 'Sandoval Townhouses'.

The project will consist of 165 mid-range apartments with high-quality German precision, certified by TUeV, the most stringent and independent quality evaluators in the world. With seven G+4 buildings, Sandoval Apartments will include 57 studio apartments, 17 two bedroom apartments, 81 single bedroom units, and 10 special duplex apartments. These apartments, which range from 680 to 2700 Square feet, will be sold at a high value driven prick bracket.

The Managing Director of Bavaria, Raymond Lefevre, said "Our previous launch of Sandoval Townhouses, proved to be a real eye opener for us. Now, Sandoval Apartments follows suit, offering high-quality, yet, luxurious, functional and value-driven realty concepts."

Bavaria is also one of the first mid-segment realty developers in Dubai, to sign home loan agreement for all its future and existing projects with Mashreq, one of the largest private banks in the Middle East. The customers of Mashreq will benefit from customized home loan packages, apart from enjoying upto 90% on sales price for all existing and future Bavaria Gulf projects, with attractive interest rates for the next 25 years.

Mashreq will offer Bavaria customers with a variety of convenient financing options and attractive rates, apart from other benefits such as the lowest down payments, apart from providing them with the benefit of owning the property of their dreams.

Thursday, December 20, 2007

Pearl Dubai FZ LLC reveals purchase of Dh 3bn Dubai Pearl

Dubai PearlA Consortium of investors, Pearl Dubai FZ LLC, led by the Al Fahim Group, Abu Dhabi-based group, has announced that it has purchased and repositioned the $3billion worth Dubai Pearl real estate development.

The project, located within the Dubai Media and Technology Free Zone (TECOM), facing The Palm Jumeirah, will cover a built-up area of more than 15 million square feet.

Abdul Majeed Al Fahim, the Chairman of Board of Directors, Pearl Dubai, while speaking during a press conference, mentioned that Dubai is growing at an unprecedented pace, and that 'Dubai Pearl' will be a unique addition to the real estate landscape of the emirate.

Dubai Pearl is an integrated, mixed-use sustainable development with all major components located within 400 meters of each other, and is expected to be complete by December 2010.

The residential segment of Dubai Pearl Towers will include Sky Palaces with private gardens and pools, Sky Penthouses, luxury-branded condominiums and apartments. It also features boutique, offices, renowned hospitality brands, state-of-the-art theatre with a capacity for 1500 to 2000 people, a luxury fashion precinct located within a premier shopping mall, cinemas, and multi-cuisine food courts.

The construction of 'Dubai Pearl' would begin immediately. The project is considered to be unique, as the infrastructure amenities, including a well-linked road network are all in place, facilitating easy access to all major residential and commercial areas such as the Jumeirah, Dubai Internet City and Dubai Media City.

Monday, December 17, 2007

Office Rents in Dubai, Doha to surge by 20%

The office rents in Dubai, and Doha are likely to go up by 20% next year, as the demand surpasses supply, and due to the expansion of international business in the Gulf region, revealed the property services company, CB Richard Ellis.

"The top-quality offices in Dubai, cost as much as Dh.500 per square foot, and this in-turn could increase prices to Dh.600 per square feet next year, which would continue for 18 months, and thereafter the prices may probably halve to about Dh.300 per square foot in another five or six years with an increase in market supply" says Nicholas Maclean, the Managing Director, CB Richard Ellis.

However, at present, there are not enough supplies reaching the market, which would do no good to the businesses or for the government.

As far as Doha property is concerned, the demand is increasing, with an expansion in oil and gas companies, and the government is seeking new space. Although, the prices in Doha are lower than that in Dubai, the trends are the same.

On the other hand cities in India, Egypt, and Philippines are gaining advantage from the rising prices, as businesses turn to them for back-office operations, said Maclean.

The office space in Dubai is likely to more than triple touching 100 million square feet, as against the present 30million, during the next five to six years, Maclean concluded.

Waterfront Residences building contract awarded to Mammut Group

Dubai WaterfrontNakheel, the Dubai-based largest and most innovative real estate developers in the world, has awarded the first building contract for residences at Waterfront to Mammut Group, an UAE-based building and construction enterprise.

This will result in creation of first apartments and duplexes at the development, and is scheduled for completion by 2009.

Nakheel is developing an iconic portfolio of excellent landmark real estate projects in Dubai across a wide range of sectors like commercial, residential, leisure and retail. The developments of Nakheel would spread across more than 2 billion square feet of land, projected to be worth $60billion. On completion, the water front projects of Nakheel will cover about 1000 kms of Dubai's coastline.

Saturday, December 15, 2007

Al Osaimi Group launches Dh.1bn luxury resort at Palm Jumeirah

Luxury Resort in Palm Jumeirah
The Al Osaimi Group has confirmed that the construction work of the $272million (Dh.1 billion) luxury resort at The Palm Jumeirah, is progressing as scheduled, and will be ready by first quarter of 2008.

The Kuwait-based developer has taken the help of several firms for project consultancy, contracting and enabling works and project management, as this is their maiden project in the UAE. The project is located on the Crescent of The Palm Jumeirah.

During the first quarter of 2008, the developer will launch one million square foot project, in accordance with the agreement signed with Dusit International, one of the prestigious Thai hotel chains in the world.

At present, Al Osaimi is carrying on with the final stages of escrow registration process in compliance with regulations laid out by the Dubai Land Department, thereby preparing to launch early next year.

The project that spreads over an area of 95,000 square meters on The Palm Jumeirah, comprises a seven star luxury hotel, a five star family resort, and an upscale residential complex that includes 178 posh freehold townhouses, penthouses and a dozen chalets.

Being designed in traditional Indian manner, the hotel has 116 guestrooms and suites, while the Moroccan-themed family resort has 292 rooms and suites. The hotels offer excellent dining, themed landscaping, ballroom, and state-of-the-art amenities. The luxurious development will also include renowned Deverana Spa by Dusit, an authentic Thai-inspired rejuvenation, apart from internationally acclaimed service of Dusit International, incorporating Thai culture and hospitality.

Right from its inception 25 years ago, the Al Osami Group, has handled several projects in Kuwait, and in the Middle East, including commercial, residential, hospitality and retail developments. The company has a rich portfolio that covers various sectors including, construction, real estate investment, engineering, while the subsidiary firm of the group has spearheaded for 15 projects including the group's development on The Palm Jumeirah.

Tuesday, December 11, 2007

Abu Dhabi plans to set-right property laws

Abu Dhabi is planning to create a legal framework to protect the emirate's property investors to support the current property boom, said senior government officials.

Speaking during a seminar on 'Abu Dhabi Property Laws', the Undersecretary of the Department of Municipal Affairs, Ahmad Mohammad Shareef, said Abu Dhabi is currently witnessing a construction boom that is expected to continue during the next 15 years. The recent launch of Al Raha Beach, Reem Island and Saadiyat Island are sufficient proof of evidence for this.

However, an essential element for success of mixed-use projects depends is, owning the right regulatory framework that provides legal protection and clarity to property owners and investors. Currently, the Al Tamimi & Company is drafting "implementation regulations" that provides guidance on various aspects of property laws. The lawyers and property specialists have requested the Abu Dhabi government to establish a regulatory body, just as Dubai's RERA.
The experts have also urged the government to implement a property registration system in the emirate. Analysts are of the opinion that property valuations in Abu Dhabi are cheap and have further potential for growth.

With the Abu Dhabi property sector gaining credibility, the market remains extremely tight, with high growth in rents, which grew by 22 percent, and prices, which grew by 18 percent. Further improvement in Abu Dhabi's current property laws are necessary, as registration of property rights and ownership rights are expected to have a positive impact on property market.

Although, there were two laws that were issued in 2005, pertaining to ownership and registration of property rights in Abu Dhabi, the law does not stipulate the rights of the land upon which the apartment or building is located. A Strata Law is likely to be implemented shortly, that would define the rights of owners’ of units and the common property in multi-owned buildings and communities.

Ground-breaking held for Indigo Spectrum 1 and 2

Indigo Spectrum 1 and 2
One of fastest growing real estate development companies, Indigo Group, has announced the ground-breaking of their project, Indigo spectrum 1 and 2 in the Central District of International City, Phase 1 in Dubai.

The eight-storey Indigo Spectrum 1 and 2 comprises exquisite residences, with single, double and triple bedroom apartments, and feature a rooftop pool, ground floor retail, and fully equipped gym that represent contemporary metropolitan living.

The Director of Indigo Properties, Anand Lakhiani, expressing his delight over the construction, said that Indigo Spectrums 1 and 2 are set to deliver an exciting living experience at International City. He said that he was confident about the concept being embraced by the market, which would make way for a series of stylish, affordable living solutions.

Sunday, December 09, 2007

Dubai property prices unlikely to stabilize in next few years

The real estate prices in Dubai are unlikely to stabilize during the next five years, in case the rent-cap is not lifted, and if the government does not take initiative to implement measures that could contribute in improving the supply market, say experts.

Property price trends in DubaiA study of the Dubai real estate sector by the Dubai Chamber of Commerce and Industry (DCCI) revealed that demand and supply of real estate will reach equilibrium only in 2023, provided, the government does not interfere or bring in new policies.

The Director of DCCI's Data Management and Business Research, Dr. Belaid Rettab, said "Equillibrium is when demand meets supply, and the prices remain stable."

Imposing rent cap, apart from delaying the process of stabilizing the market, will not be able to address price hikes too. Being supporters of liberal business, we do not prefer to have rent caps. The simplest solution to prevent price hikes is to bring in more supply to the market. The government, apart from supporting development of mortgage sectors, will also have to arrange finance facilities to developers so that they could build more, Rettab said.

The DCCI study revealed that the property prices have increased by a 10 percent cumulative annual growth rate in the medium term. The long term increase was 4 percent, which translates itself into an average price hike of seven percent, equivalent to the current rent cap imposed by Dubai government.

The DCCI study revealed that the government policies will positively influence income, population, cost, financing availability, tastes and preferences of buyers and speculation of future prices that could contribute to increase in demand.

The increase in supply will depend on the financing, production inputs cost, construction technology and expectation of future demand.

Mawarid Finance offers financing for The Centrium purchasers

Centrium Dubai
Mawarid Finance, a Dubai-based public joint stock company, specializing in Islamic Finance, have entered into a partnership agreement with ETA Star, for providing finance to purchasers of units in 'The Centrium' at International Media Production Zone (IMPZ) in Dubai. Potential buyers can get up to 95% finance, and will have to pay installments after moving into their apartments.

The 'Centrium' in Dubai, comprises of four towers, interlinked to each other by bridges and with common facilities in a spacious garden setting. The apartments are available in configurations of single, double and triple bedroom apartments with latest hi-tech amenities.

The Chief Executive of Mawarid Finance, Mohammed Al Neaimi, said that the financing of the 'Centrium' units is based on Ijara principle, with an undertaking to transfer title on fulfillment of buyer's contractual commitments.

Saturday, December 08, 2007

Diamond Views in Jumeirah Village progresses on schedule

Diamond Developers, a new class of property developers in Dubai, have announced both projects, Diamond Views 1 and Diamond Views 2, which are progressing as per the planned schedule during the construction phase.

Diamond views in JumeirahDiamond Views, the Dh.1bn project, located in South Jumeirah village, features town houses and residential buildings. The buildings offer four different kinds of spacious studios, eighty types of single bedrooms apartments, and three types of double bedrooms apartments. The townhouses offer a selection of two, three and four bedrooms.

Ideally positioned in Jumeirah Village, the Diamond Views offers its residents all the amenities that define Dubai's standard way of living, featuring parks, sports courts and tracks, shopping, fine dining, movies, countless night life choices and more.

The shoring and excavation works have been completed, and currently, Diamond Views 1 is at the stage of townhouses foundation up to tie beams. The construction of first phase of Diamond Views 2 began during early part of this year.

The shoring, excavation, dewatering and foundation works is being handled by Jeet Contracting. The expected completion date for first two phases is December 2008.

Thursday, December 06, 2007

Al Manal Development- first company to issue Pre-registration Certificates

Al Manal Development is the first company to issue the Pre-registration Certificate for its La Vista Residence project, in line with the recently introduced new system by the Real Estate Regulatory Authority (RERA).

The Chairman of Al Manal Development, Juma Al Ghurair, said that after being the first to implement the Escrow Account Law, Al Manal, is now, the first to issue the Pre-Registration Certificate.

He said that Dubai, being a competitor in a world market, the business practices and laws should be the best, if it wishes to increase its international property investment. The creation of RERA, and introduction of new laws, has generated stability in the market, which would benefit investors and developers alike.

RERA, which covers three areas, permits developers to input all pre-sale, change of ownership and mortgage activities. The Pre-sale category includes full registration of buyer's information, property details, and the amount sold for. The mortgage section is filled in on completion of pre-registration, and will include the mortgage plan, which is chosen and approved by the buyer. The Change in ownership section will include updates of any change of ownership that RERA and the property developer can keep track of.

La Vista Residence

RERA, Chief Executive Officer, Marwin bin Gholaitah, said that the pre-registration system would provide more credibility to developers, and create better trust between developers and customers, as the information regarding property would be safely registered in a secure system, approved by RERA.

Wednesday, December 05, 2007

GCC Realty prices expected to continue in the current pace

The real estate prices in Gulf Countries will continue to remain as in the present, due to land scarcity and fluidity caused by surging oil prices and mounting speculations, revealed a special report.

Middle East Real Estate MarketA weekly report by Al-Masar Group states that the inflation in building & construction sector in Gulf, has reached fresh levels through construction of 2837 projects, mostly in UAE, Saudi Arabia, at an estimated value of $2.4trillion.

A recent study by a Dubai-based Research Company, 'Proleads', states that the King Abdullah Economic City, is the largest project, currently in progress in the region, which is worth around $120billion.

Next in line, is the 'City of Silk' in Kuwait, costing about $86billion, followed by the Dubailand in UAE, which costs around $60billion.

However, the report depicted conflicting figures and statistics, depending on the size of planned or under-construction projects. Massive projects, which include industrial islands and skyscrapers, lie behind the growth of regional construction and building sector, and huge boom in the sector, has led to better maintenance services, facilitated construction, overhauled utility management and helped a high demand for the sector.

The size of utility management market in Gulf countries, except Saudi Arabia, touched Dh.17.72bn during 2006, and is expected to grow up by 15.3 percent by 2012, stated the report.

UAE Realty to grow beyond 2015

As per two recent studies by Damac Capital International and HSBC, the UAE, which accounts for more than sixty percent of the real estate development in the region, is expected to experience the realty boom beyond 2015.

Analysts forecast that Dubai, which continues to experience major demand would continue to surpass supply for a couple of years more, while the Abu Dhabi market, is expected to pick up and maintain high rental yields beyond seven percent until 2013.

The analysts of Damac Capital, Pamela Chikhani and Hany Seif, predicts that although the Dubai property market signifies only a small fraction of global market, it will continue to be a major force in the regional real estate investment.

Asteco, a Dubai-based realty agent, reveals that the Dubai property market accounts for 47 percent of the entire GCC market. Abu Dhabi is a distant second with 14 percent. Hence both Dubai and Abu Dhabi put together, account for more than 60 percent of GCC real estate market.
It has been estimated that within the next decade realty investors would pump in about $300bn into Dubai's real estate developments.

However, HSBC's Analysts believe that, Abu Dhabi emirate would establish itself as a new regional real estate market, as the sales activity has picked up this year, and the market remains very tight with stronger-than-expected growth in prices and rents.

Tuesday, December 04, 2007

ACI real estate launched Niki Lauda Twin Towers in Business Bay

Niki Lauda Twin Towers in Dubai
Leading providers of investment solutions in Germany, ACI (Alternative Capital Invest) Real Estate, has officially launched the Niki Lauda Twin Towers in Dubai. The launch was alongside the 36th anniversary of UAE's formation, where ACI participated in the National Day celebrations. The legendary Formula 1 World Champion racer, Niki Lauda, was also present during the launch ceremony.

The launch of Niki Lauda Twin Towers in Dubai, is the first among the series of celebrity-branded real estate developments to be launched by ACI Real Estate. Two other properties endorsed by Boris Becker and Michael Schumacher are expected to be launched in the next couple of weeks.

The ACI Real Estate Managing Director, Robin Lohmann, said that "We at ACI believe in doing things in a different manner, as being innovative adds significant value to our offerings. By adding a celebrity brand, which matches our standards of excellence, we make sure that apart from delivering just a great product to our customers, we also create an iconic landmark which is instantly recognizable."

Positioned in Business Bay, the Twin Towers with 29 and 26 storey each, and another four floors at basement parking, are due for completion by 2010. The towers, which houses only offices, are the only office development in Dubai that provides leisure amenities such as outdoor swimming pools, gymnasium and prayer rooms.