Monday, June 27, 2011

Dubai housing prices rebound in Q1 2011

The prices of housing in Dubai have grown by more than 2 percent in six months, according to results of latest global house price survey.

The quarterly survey report by Knight Frank, the leading global property consultancy, revealed that housing prices in Dubai grew by 0.6 percent during first quarter of this year, while it is 2.1 percent higher in the past six months ended 31st March 2011.

This is in comparison to the falling numbers during the previous editions of Knight Frank Global House Price Index starting 2006. The report helps investors and developers compare and monitor the performance of mainstream residential markets across the world.

Although the entire Middle East showed a positive picture, Dubai in particular has seen growth in prices and has regained positive territory during the last six months. The market is stabilizing after the volatility in 2008-2010, said Liam Bailey, Head-Residential Research, Knight Frank.

Asia remains the top-performing continent with record growth of 8.4 per in the past 12 months. The weakest was North America with a 0.4percent decline in values during Q1 2011.

In conclusion, Bailey mentioned that the current slowdown in global housing markets may continue, until it hits a low point in fourth quarter of this year, although the Asian markets will continue to remain cool with successful government intervention. However, a slow recovery in housing prices will happen in global housing prices is expected in 2012.

Tuesday, June 21, 2011

World’s tallest residential tower in Dubai on schedule

The world's tallest residential tower built in Dubai is getting ready as scheduled by December, its developers said.

Tameer Holding Investment LLC has announced that the Princess Tower is ready, and the superstructure, on completion will be the tallest residential building in the world.

Spreading across 37,410 square foot of space in the Dubai Marina, the tower will comprise 107 floors, with more than six basements and a ground floor. Princess Tower is now in final stage of construction, and the delivery and handover of this iconic project will happen soon, said Federico Tauber, the President of Tameer Holding.

The Princess Tower offers 763 luxury apartments including single, double and triple bedroom units, apart from four and five bedroom penthouses with wonderful views of Arabian Gulf. The ground floor includes eight retail spaces. Among the amenities in the development are indoor and outdoor swimming pools, children play area, gymnasium, sauna rooms, private car park and reception area. The top floor will offer gathering and recreational amenities for residents, apart from private parking, access to public transport and Dubai Metro, and shopping amenities like Marina Mall and Mall of Emirates.

Located in proximity to Burj Al Arab, Palm Jumeirah and Madinat Jumeirah, and standing tall at 414 meters, holding a world-record status, Princess Tower will turn out to be a major landmark in Dubai, Tauber said.

Wednesday, June 15, 2011

129 projects completed, 450 projects on way for completion in Dubai

Dubai has already witnessed completion of 129 projects since 2009, with 237 out of 450 projects due for completion in due course. RERA (Real Estate Regulatory Agency), the regulatory arm of Dubai Land Department, mentioned that 217 real estate projects have been cancelled as of 31st May.

At present, about 455 registered developers and 893 registered brokers have been registered in Dubai as of 31st May, while 114 projects have been registered under the Tayseer programme (Government-guaranteed funding project).

The statement further said that following considerable price declines since the fourth quarter of 2008, owing to withdrawals of speculative buyers in the market, the prices have now stabilized in completed developments.

The Dubai Statistics Centre reported that 1148 buildings worth Dh.5.7bn were completed in the first quarter. The real estate and business services sector accounted for Dh.40.3bn or 13.7 percent of GDP in 2010. Meanwhile, the construction sector contributed to Dh.27.5bn worth 9.4 percent of GDP in 2010.

Monday, June 13, 2011

RAK Properties announces delivery of Julphar Tower units

RAK Properties, the Abu Dhabi-listed real estate development company, yesterday revealed that it has begun delivery of freehold commercial and residential units at Julphar Towers.

The project comprises two 43-storey towers, which are one of the tallest and most luxurious towers in RAK, offering a range of amenities. The residential tower features 349 apartments ranging from studios to four bedroom units, and duplexes on the upper floors, while the office tower features 468 state-of-the-art offices ranging various sizes to meet various work requirements.

The RAK Properties has offered a range of attractive incentives, all of which are in-line with the current situation in property market. Among the incentives offered are competitive rates, excellent infrastructure, a premier location, which can offer both horizontal and vertical space so as to accommodate both residential and commercial sectors, revealed Mohammed Sultan Al Qadi, Managing Director and CEO of RAK Properties.

Both the towers have been built on a three-storey podium that will offer food outlets and retail with stunning water views, which is due for completion in the coming months.

The towers also feature several high quality services that complement various personal and professional preferences. Given the free zone status of the tower, it offers the possibility to establish companies across various sectors. This makes it a more attractive option, with potential for great success, Al Qadi said.

RAK properties is all set to complete 2050 property units, including villas, apartments and offices within the Mina Al Arab project, and these will be delivered to clients during third quarter of this year. The company also plans to handover district 5 of Mina Al Arab, and the RAK Tower project in Abu Dhabi towards the end of this month.

Wednesday, June 08, 2011

Infrastructure ready for Downtown Jebel Ali development, say Limitless

Infrastructure is ready for Downtown Jebel Ali, the Dh.48bn mixed-use urban development, constituting 326 buildings, with developers now working on finalizing design plans for their projects, revealed a senior executive at Limitless.

The Executive Director for Limitless – Middle East, Salah Ameen, said that five plots are under construction while three more developers are now finalizing their design plans. Among the 326 buildings likely to come up in the development, 237 will be residential.

Limitless is the master developer of Downtown Jebel Ali, and has already developed The Galleries, comprising six office buildings and two residential towers.

One of the projects now under construction in the master development is that of Damac Properties. The residential development here is due for delivery by 2013, and it is moving as scheduled.

Limitless is also working towards completion of first phase of residential units at The Galleries, wherein, a total of two buildings will offer more than 600 units.

Although the master developer had initially emphasized that sub-developers will have to begin construction within five years from plot handover date, they are now lot more flexible due to current market situation. However, they have confirmed that action will be taken against developers who failed to abide by their financial obligations despite offering consolidation or easy payment plans.

The Downtown Jebel Ali is a mixed-use urban development comprising four zones stretching for 11kms along Sheikh Zayed Road, and located between Jebel Ali free Zone and Techno Park. It constitutes 326 buildings worth total of Dh.48bn.

Monday, June 06, 2011

Dubai properties to see stability in values, while Abu Dhabi may see decline

The real estate sector in Dubai will witness stability in capital values, while Abu Dhabi will witness highest value declines in next one year, says the Jones Lang LaSalle (JLL) survey report.

The global property consultancy, in its 2011 MENA Real Estate Investor Sentiment Survey Report, revealed that although Dubai has already crossed its supply peak, Abu Dhabi is still approaching the peak of supply cycle. Therefore, the rents and sale prices in the Capital are likely to go down in the coming year.

The survey respondents include top 30 financial institutions investing in regional real estate markets. The respondents are of the belief that Dubai rents will also continue to fall, but the rate of decline has slowed down considerably, with some locations and sectors having already hit their bottom.

The survey showed investor interest for all asset classes in Abu Dhabi, although the interest was strongest for residential sector. In Abu Dhabi and broader region, investors are expecting opportunities in middle income housing segment.

MENA-based investors have also expressed interest in residential sector, particularly for low and mid-income housing, which were neglected during the boom period. Regional developers and investors are eyeing opportunity to partner with local governments to develop affordable housing. Abu Dhabi has already been in the forefront in this arena.

Meanwhile, 75 percent of respondents agreed that they plan to increase their investment level in the MENA property market in next one year. Although they expressed interest for all asset classes, office is the preferred sector for investment, with particular focus on completed and operational properties, supported by long-term secure income streams. In Dubai and Saudi Arabia, logistics and light industrial sector too emerges as another target sector.

As for investment strategy, MENA is the geographic focus, with 67 percent of respondents planning to acquire regional assets in next one year.

Thursday, June 02, 2011

New villa community likely to come up in Jumeirah

The H&H Investment & Development, the Dubai-based real estate Management and Development Company announced that it is currently developing a villa community in Jumeirah.

The residential villa community project in Jumeirah, which is now at design stage, will comprise 20 to 25 high-end villas with some retail componenets, revealed the Chief Executive Officer of H & H Investments, Shahab Lufti.

According to real estate experts, villas in Jumeirah are much in demand among GCC nationals. With the current unrest in Middle East region, the demand has soared further, with average rents ranging between Dh.200,000 and Dh.350,000.

Lufti said that his company has stopped working on or developing projects in freehold area. In fact, the company is concentrating on non-freehold areas such as Bur Dubai or Deira, as these locations are still lucrative, and gain an occupancy rate of 80 to 85 percent on completion.

H & H Investment is working on the design of a residential project located close an Island on ‘The World’. Being a third party project, H&H will monitor the development of the project, in case the owners of the island decide to go ahead with the project.

However, no further details of the project have been revealed, although Lufti said that his company may re-use some old designs for the new project. One of the sister concerns of H & H Investments was working on the D51 project of Venture Capital Bank. The design of the project was nearly 70 percent complete and had won the initial approval from concerned authorities.