Monday, January 30, 2012

Deyaar promises hand-over of four projects in 2012


Leading Dubai-based real estate developer, Deyaar Development, has announced plans to hand-over four projects this year, which comprises more than 1000 units, including three commercial projects in the Business Bay and a residential project in the International Media Production Zone (IMPZ) in Dubai.

The first project to be delivered this year will be the commercial tower, Fifty One @ Business Bay in the month of February, followed by Oakwood Residency located in IMPZ in March. Two other commercial projects will be delivered during second half of 2012, Deyaar reported in its statement on the Dubai Financial Markets website.

At present, Deyaar manages more than 16,000 commercial and residential properties. Its operations are divided across lease management, real estate development, fund management and asset management.

Nearly 90 percent of its units have been sold, with the total sales value for all units were worth about Dh.1.5bn.
Deyaar recorded good profits in the third quarter of last year, notching up a total profit of Dh.580,000, in comparison to sizable losses in 2010.

Saturday, January 28, 2012

Stalled project in Business Bay to be re-launched under Tanmia initiative


The Tanmia initiative by the Dubai Land Department is likely to begin the once-stalled Santevill project in Business Bay.

A semi-government entity has agreed to invest money towards completion of Santevill project. The paperwork is already in progress. When completed, the investors will be called to discuss the matter, the sources informed.

Developed by Sungwon Corporation, Santevill is a 25-storey tower, worth Dh.400mn in Business Bay. The work on the tower comprising construction of 195 apartments were halted since March 2011, as Sungwon filed for court receivership, and requested help from court for re-scheduling its debt with creditors.

Launched in September 2011, the Tanmia initiative aims to re-vitalize the Dubai property market, by focusing on incomplete projects. The department appointed several audit firms to take up technical and financial audits on several stalled projects.

According to the Director General of Land Department, Sultan bin Butti bin Mejren, the initiative will cover 100 projects a year.

The property owners and investors in stalled projects can approach the land department and seek inclusion of their project under the Tanmia scheme, said Majida Ali RAshed, Senior Counsel Strategy - Land Department.

She further said that the Tanmia scheme targets both government and private sector, and will look at all legal, technical and financial aspects, before permitting another developer/investor to take over the project.

Monday, January 23, 2012

Increased jobs can help recovery of UAE realty market


Creation of more jobs will help in recovery of property market in the UAE, said a real estate expert.
According to Head of Research – MENA at Jones Lang LaSalle (JLL), Craig Plumb, creation of more jobs holds the key to recovery of real estate markets of Dubai and Abu Dhabi.

Craig points out that real estate prices have already stabilized in preferred locations in Dubai, such as Arabian Ranches, Palm Jumeirah, and the Lakes, while the decline in prices in Abu Dhabi, will be more than in Dubai, with more supplies entering the market.

The residential sector in Dubai is close to bottoming out, while few locations are already seeing increase in prices and rents. This year, more sectors are likely to see recovery, although this may not be a universal phenomenon.

According to the third quarter report of 2011 by JLL, Dubai will get an additional 25,000 new units this year, while in Abu Dhabi there will be 20,000 new units. There may be a drop in these numbers due to delays.

The office market, however, is still in a downturn phase. Rents and prices have stabilized only in best quality buildings. The tenants have more choice of projects, and this implies that rents and prices are likely to decline in all, but, only the best buildings in 2012.

The third quarter report of 2011 by JLL estimates that nearly 1,000,000 square meters of fresh supply will enter the Dubai and Abu Dhabi markets. Abu Dhabi will get nearly 500,000 square meters of office space. However, not all these spaces will be delivered, as projects continue to meet delays, owing to issues such as construction, contractual and permit issues.

Saturday, January 21, 2012

Residential property prices in Dubai, set to bottom out in 2012


The declining residential property prices will finally bottom-out this year, although, the real revival wont’ begin until 2013.

Predicting the future of property sector in Dubai, the global property consultant Jones Lang LaSalle (JLL), said that although the residential owners can heave a sigh of relief, the poorly managed projects or those isolation from other infrastructure, will pull back the desired properties and will not allow them from rebounding, the experts said.

The residential sector in Dubai is close to bottoming out, with prices already on the increase in major locations, said Head of Research – MENA at JLL, Craig Plumb.

This year, recovery in individual projects may happen, while the year 2013 will be the recovery year for the whole market. The year 2012 may be a good year for tenants, as office rents may continue to decline, JLL said. This may benefit UAE in its competition with neighbours, for attracting international firms.

However, other forecast trends seem less positive. JLL expects hotel earnings in Abu Dhabi to face pressure, with the launch of new properties.

Plumb has called on lawmakers to keep a closer look on initiatives such as amendments to terms of property visa, so as to ensure they are followed up after announcement.

Saturday, January 14, 2012

UAE property sector may see profitability in 2012


The realty sector in UAE is likely to return to profitability this year, with the corporate sector all set for sustained growth, say analysts.

According to the latest report released by Markaz (Kuwait Financial Centre) on “What to expect in 2012?”, the corporate earnings have rebounded in UAE during 2011, following the considerable loss suffered in 2010. The sector will moderate to 23percent growth this year, with the banks likely to record a 26percent growth, and telecoms all set to grow by 6 percent, as against a 14 percent decline recorded earlier. 

Overall, the UAE economy will depict a 3.8percent growth in 2012, following a 3.3percent growth in 2011. Although the analysts adopted a neutral view of the GCC markets due to lacklustre liquidity and activity, they expressed positivity on Qatar and Saudi Arabian markets, given, their earning potential, market liquidity and positive economic growth prospects.

In 2012, the UAE corporate earnings will touch 23 percent, while Kuwait and Saudi Arabia will show a 19 percent growth each. According to Markaz analysts, the budget for 2012 in Dubai, makes it evident that conservatism and cautiousness is the way to move ahead. 

Revenues are expected at the rate of $8.3bn during the coming year in Dubai, majority of which will be from service charges and fee. However, the emirate still struggles with a debt of $15bn, particularly due to Dubai World and Dubai Holding. 

The Dubai property sector, while bottoming out, will continue to fight oversupply issues, with residential prices likely to decline by 15percent, as supply continues to surpass demand. Meanwhile, the supply-demand imbalances will also continue to dampen prices in Abu Dhabi, the report said.

Friday, January 06, 2012

Brisk start for UAE realty market in 2012


Leading real estate specialist, Cluttons, has predicted the real estate trends across residential and commercial sectors across the UAE in 2012.    Their report states that the residential market in the UAE will continue to mature, And will see increased demand.

Residential

Cluttons has predicted a brisk start for the year 2012, with the trends in the residential market in the UAE likely to continue, with good quality and well-established developments being benefitted immensely due to their amenities and services. They are likely to do well at the expense of newer residential areas. Cluttons also anticipates that the residential market in the UAE will continue to gain from readily available mortgage finance options at competitive rates.

Commercial

An improvement in demand is expected in the commercial sector too. However, the rents are likely to bottom out in the commercial sector, with minimal further reductions.

Cluttons expects an improvement in occupier demand in 2012 with several companies seeking to re-locate into the UAE. This trend could possibly be due to Arab Spring, and due to the perception of Dubai being a safe haven for business.

The general oversupply of office stock in the market place, coupled with availability of low rentals will continue to fuel occupier movement within the city. Several companies are going through rigid cost-saving and downsizing measures, with particular focus on reducing rents and vacant floor space, which is no longer needed, Cluttons said.

The oversupply of office stock will continue in 2012. Although there are indications about the bottoming out of rentals, further reductions may be minimal, it is said.

Tuesday, January 03, 2012

Park Towers bags World's Best award


The ‘Park Towers’ at Dubai International Financial Centre (DIFC) has won the title of ‘World’s Best’ in the ‘Best Mixed-Use Development’ category at the International Property Awards in London.

The Park Towers development bags this title at the International Property Awards, after having received five honours at the Arabian Property Awards last month.

These awards indicate that the company’s strategic approach to sustainable development has been the right course of action in a challenging market, said Niall McLoughlin, Senior Vice President, Damac Properties.
The architectural-design is the noteworthy aspect of this great architectural build. The twin elliptical shaped towers change their shapes as they rise, with no two floor plates being the same. The towers expand from the base, with maximum floor plates achieved at the mid-point, before receding until they reach the crest.
The external facade of the towers comprise triangular, solar-glass, energy-reducing panels, of various sizes. The string of internationally-recognized awards received this year, confirms the position of the company as one of the leading regional developers, and is one of the most highly-regarded in the world, said McLoughlin.

Damac earlier bagged a gold five-star Arabian Property Award for ‘Best High-Rise Architecture’ for luxury Al Jawaharah tower in Saudi Arabia. During the year 2010, the developer also bagged an International Property Award for ‘Best High Rise Architecture’ for its first Versace-branded residential Damac Tower.