Thursday, April 26, 2012

First quarter records Dh 12bn worth real estate transactions


During the first quarter this year, a total of 6,249 transactions worth Dh.12bn have been registered by the Dubai.

A total of 974 real estate transactions worth nearly Dh.2billion have been registered in Dubai Marina during the first quarter of this year, revealed data from the Dubai Land Department (DLD).

A total of 854 transactions worth Dh.1.76bn were recorded in Burj Khalifa area, while a total of 330 transactions worth Dh.1.61bn were registered in Palm Jumeirah.

Al Thanyah Fifth (Jumeirah Lakes Towers) reported 1,107 transactions worth Dh.1.02bn. Al Thanya Fourth (Springs, Meadows) registered 182 transactions worth Dh.640mn, while Al Thanyah three (Greens, Views) recorded 253 transactions worth Dh.319mn. Al Barsha South (Jumeirah Village) saw a total of 406 transactions worth Dh.391mn.

In 2011, the Land Department recorded a total of 35,297 transactions, worth a total of Dh.143bn, marking a 20 percent growth in comparison to 2010. Mortgages constituted 60 percent of total transactions, thereby indicating a recovery in property financing, said the Land Department.

Out of the total investments last year, GCC nationals invested Dh.12bn, while Indians topped the list of first-time property buyers in Dubai, having purchased properties worth Dh.2.1bn.

According to Jones Lang LaSalle Report released early this month, the residential property market in Dubai seems to have bottomed out, as prices now are at rates similar to that in early 2008.

Knight Frank mentioned that real estate sector in Dubai has not only stabilized, but, prices have grown by 2.3percent on an average during last quarter of 2011.

Wednesday, April 25, 2012

291 stalled projects in Dubai to be resumed shortly


Dubai had announced that a total of 291 stalled projects will soon see the light of the day. Each of the 291 registered projects, as of 31st March 2012, will qualify for either the Tayseer or Tanmia initiative, and, work on the projects will be resumed.

The Real Estate Regulatory Agency (RERA) in Dubai has quoted in the prospectus as saying that 165 projects have been completed since the start of 2009. About 291 projects have been put on hold. These projects will be completed in due course. Another 29 projects have not yet commenced.

A bond prospectus posted on the London Stock Exchange in 2011, states that 217 real estate projects have been cancelled as of 31st May 2011. The new bond prospectus reveals that the current market situation has led to re-evaluation of several real estate projects and delays in several projects. Since mid-2008 several real estate projects have been cancelled or delayed, reflecting shortages in liquidity for developers and decreasing headline real estate prices and rental rates.

Under the Tayseer programme, a total of 154 projects have been launched in 2010, out of which 40 projects qualified under the required criteria. The criteria require that projects should possess adequate infrastructure planning, with well managed escrow trust account and financial reporting, the technical report should show minimum 60 percent construction completion, and that minimum 60 percent of the project is sold.

As per the prospectus, the Tanmia initiative will include 33 projects, two of which have been launched already. The initiative is designed to boost investor confidence in these projects, which the Dubai Land Department has identified as qualifying for the Tanmia program.

As of 31st March 2012, Dubai has 596 registered developers and 852 registered brokers.

Last year, DLD recorded Dh.94bn villa-related realty transactions and Dh.43bn apartment-related property transactions.

According to Jones Lang LaSalle the residential real estate market in Dubai, appears to have bottomed out with prices similar to early 2008 levels.

Meanwhile, Knight Frank in its March report said that real estate in Dubai, has not only achieved stability, but, even the prices have grown by 2.3percent on an average during last quarter of 2011.

Tuesday, April 24, 2012

First-of-its-kind Real Estate Investor Protection Law to be passed in Dubai


The Property Investor Protection Law by June 2012, states that the Dubai Land Department will issue a new law soon, to organize the relationship between real estate investors and developers during the construction of projects.

The Director General of Dubai Land Department, Sultan bin Mejren, mentioned that the new law will be the first of its kind, devoted to protection of a particular segment of investors, ensuring their rights.
The department has completed the finalization of draft law on protection of real estate investors, which will be passed soon, Bin Mejren said.

The final version of the law will cover all major aspects of real estate projects, and regulates the process of starting the project by ensuring reliability of developer and eligibility to implement the project. It requires legal status check and monitoring the construction.

As per the latest regulation, developers are not allowed to proceed with sale of the development, before completing at least 20 percent of the project.

Bin Mejren further revealed that the real estate investor protection law in Dubai, when released and implemented, will be the first law of its kind in the country and the world, dedicated completely to the protection of rights of certain category of investors.

The law forms a part of the Strategic Plan of the Government of Dubai. Bin Mejren emphasized the importance of this step to protect and preserve the rights of real estate investor. The new law aims to protect the real estate investors by achieving the required balance between rights, interests and duties of investor and developer.

The new Act further ensures that it addresses all stages of investment in real estate – from planning stage to construction and delivery phase. It regulates the contract process between investor and developer to ensure the rights of the parties.

The new law also regulates the delivery process and ensures conformity with specifications mentioned in the contract between the parties, and organizes the entire process of re-selling the property.

Bin Mejren expects the real estate market in Dubai to continue with its strong recovery process, encouraging investors to continue their investments in Dubai real estate, owing to high levels of confidence, stability and commercial appeal.

Monday, April 23, 2012

Abu Dhabi Cityscape 2012 unveiled at Adnec


The sixth edition of Cityscape Abu Dhabi has been unveiled at the Abu Dhabi National Exhibition Centre (Adnec) by Sheikh Hazza bin Zayed Al Nahyan, Vice Chairman of Abu Dhabi Executive Council.

The four-day event at Adnec, displays projects by several leading developers from across the region, and is considered as a barometer for the sector in GCC and Abu Dhabi.

Every year, thousands of investors gather during the Cityscape event, to learn about latest market trends, and to get updates on master developments in Abu Dhabi.

The latest report by CBRE, leading global research consultants, revealed that economic growth in Abu Dhabi is at the rate 4.5percent last year, and is likely to grow by 5 percent this year.

Among the anticipated highlights this year are the emirate-wide urban development strategy, part of Vision 2030, by Abu Dhabi Urban Planning Council (UPC), and the Emirati Housing initiative, wherein 7500 new homes are proposed for Emirati families in Abu Dhabi, Al Gharbia and Al Ain.

Among the major developers participating in this year’s Cityscape Abu Dhabi event are Aabar Properties, Sorouh Real Estate, Mubadala, Tamouh Investments and Tourism Development and Investment Company, which will offer updates about progress of its developments, with emphasis on developments on Saadiyat Island.

Meanwhile, Aldar has announced that two beachfront residential developments, Al Zeina and Al Muneera are available for purchase.

Saturday, April 21, 2012

All major stalled projects to be resumed in Abu Dhabi


Leading real estate specialist, Cluttons, in its latest real estate report has confirmed that several of the stalled projects, including the much-awaited Louvre and Guggenheim Museums in Abu Dhabi will be resumed.

The Abu Dhabi Executive Council has confirmed resumption of several stalled projects in the capital, including the new terminal for Abu Dhabi International Airport. This is a positive indicator for the year 2012, with several developers such as Sorouh and Aldar posting improved profits for 2011. Sorouh has posted Dh.383mn in profits, marking an increase from Dh.16.1mn in 2010. Similarly, Aldar has posted considerable profits worth Dh.642.5mn.

Abu Dhabi has also witnessed changes in the manner of conducting business by residential landlords. Several proactive landlords are taking the help of brokers to rent out their residential properties, and are offering commissions to the agents as an incentive to lease their properties.

There has been a slight decline in rents and residential sales across Abu Dhabi. However, the units in prime apartments continue to let well. The apartments on the St. Regis development of Saadiyat Island are also quite popular.

Several high quality commercial projects, Etihad Tower, Capital Gate, Sowwah Square, and Aldar HQ have come up in the market towards end of 2011. Further, the latest municipality announcement that it will no longer issue major permits for residential villas to be used for commercial purposes, has actually served as a boost to office sector. With this, several companies have been compelled to move to commercial spaces, with Prime Grade A office space proving to be most popular.

A further decline in commercial rentals is expected throughout the year in 2012 (except for Prime Grade A space), bringing rentals down to more realistic levels. With improved flexibility and incentives, rentals are likely to stabilize by end of 2012.

With more stock entering the market, Cluttons anticipates that this will be a challenging year for residential market in Abu Dhabi. The Al Rayanna project will add 1800 apartments this year, while Al Reef Downtown will bring in 1500 apartments.

The rental values have dropped between 6 to 10 percent on some projects, and these will continue to soften in 2012. The demand for residential property is still strong, with latest announcements by the government to resume all landmark projects, and with companies posting considerable profits, all of which has led to a positive effect on expectations of public in general. This scenario is also hoped to boost the economy throughout the year 2012.

Thursday, April 19, 2012

No oversupply concern for properties in Dubai


The demand for properties in Dubai has been far surpassing supply, and therefore, the concern over supply issues are rather exaggerated, said an industry expert in Dubai.

Over the past one year, Damac has seen increase in prices across the luxury segment of Dubai real estate market, said Niall Mc Loughlin, Senior Vice President, Damac Properties.

The prices of housing in Dubai grew by 2.3percent over the last quarter of 2011, as per the latest Knight Frank Global House Price Index. While the high-end market has been depicting a quick recovery, the UAE real estate market is getting highly fragmented, indicating that there is little benefit in reviewing the market as a whole.

There has been huge demand in prime locations within Dubai. However, the price gains here are being offset to a certain extent, by price declines in few other less sought locations in the emirate.

There is a strong demand for quality in both Dubai and Abu Dhabi, with existing residents seeking to upgrade, while new buyers aim to take advantage of market conditions that currently offer extraordinary value for money. People are now opting for certain locations, wherein the developer has completed the project, when purchasing an apartment to rent or buy.

According to leading property experts, Asteco, the developments in well-established locations are now nearing full occupancy rates, while the rentals are increasing.

The occupancy rates of the more established towers such as ‘The Waves’ and ‘Marina Terrace’ in Dubai Marina, are as high as 94percent, and 97 percent, respectively. Similarly, occupancy rates in Ocean Heights and Emirates garden are 91 percent and 95 percent respectively.

With the occupancy rates close to 100 percent, supply and demand are in equilibrium, Mc Loughlin mentioned.

Meanwhile, Cluttons, leading real estate advisor, mentioned that residential property market in Dubai is now more secure and transparent, with residential sales indicating a positive start to 2012.

Monday, April 16, 2012

Prices of apartments in Burj Khalifa marks 9 to 12 percent growth


The prices of apartments in Burj Khalifa, one of the tallest towers in the world, have indicated 9 to 12 percent growth during first quarter of 2012, in comparison to fourth quarter of 2011.

As revealed by Parvees Gafur, the Chief Executive Officer of PropSquare Real Estate, a Dubai-based property consultancy, the selling prices have grown during first quarter of 2012, in comparison to fourth quarter of 2011.

The asking prices are now in the range of Dh.2,850 to Dh.3,600 per square feet, in comparison to the Dh.2,600 to Dh.3,200 price range during last quarter of last year. The prices, however vary, depending on the views whether Lake and Fountain views, or sea and Sheikh Zayed Road.

On the whole, there is a clear upward trend in prices. Rentals, however, have increased only nominally. The Vice-President – Business Development & Investments, Manish Khatri, of SPF Realty, explained that the figures indicate increased stability in prices for units with a view, and for units with no great view, prices have been sliding. But, overall there is stability in prices across the board on the Burj Khalifa.

Owing to low stocks, the overall prices of properties in Downtown area have gone up. According to the price listing at propertyfinder.ae, the prices are as high as Dh.3,500 per square feet, while the lowest price is Dh.2,500 per square feet.

Last year, Burj Khalifa recorded largest residential real estate transactions, with prices topping Dh.28mn, as reported by Reidin.com. Burj Khalifa, standing hight at 2,717 feet, has 900 studios, single, double, triple and four bedroom units, while the Armani Residences offer 144 fully furnished private apartments.

It also offers luxurious leisure and recreational amenities, including swimming pools, health and wellness amenities, and residents' lounge. 'At.mosphere', one of the highest fine dining restaurants in the world, is at level 122 and At the Top, world's highest observatory deck with an outdoor terrace is on level 124 at Burj Khalifa.

Saturday, April 14, 2012

Dh 1.5bn Auto Park facility, one of a kind in the world


The Dubai-based developer, Giga Investments, has announced launch of a joint venture project, Sharjah Auto Park project, with leading Saudi developer, Al Hanoo.

The Sharjah Auto Park project, worth total of Dh.1.5bn, is one of a kind project in the world, designed to facilitate state-of-the-art automobile business hub, which suits all automobile industrial requirements of the UAE, as it is one of the most vibrant markets for the automobile sector in the GCC.

The Chairman of Giga Investments, Amir Pardesi, who has made track-record in real estate development in both Pakistan and the UAE, mentioned that both Pakistan and the UAE offer unparalleled business opportunities to all areas related to automobile industry.

The automobile sector in Sharjah is one of the fastest growing segments designed and developed to meet the growing needs of the auto industry.

Located along the Al Abir by-pass, Sharjah Auto Park, will meet the much-needed demand for single point hub for all activities pertaining to automobile industry. The Park will be a single-stop solution for customers, making it an ideal opportunity for new and existing businessmen to cover various segments of automobile sector.

The facility will also feature a world-class complex for spare parts of various types of machinery, cars, yachts, generators, boats, cranes, construction and earth works machinery.

The project will also be of great support to Sharjah green drive as it will absorb most of the industrial and commercial congestion from Sharjah business district, by resolving traffic congestions, industrial pollution and other civil issues, thereby improving the lifestyle of Sharjah residents.

The complex will also offer a dedicated research and development facility, wherein automobile engineering students can perform R&D activities. Further, the Auto Park will be self-sufficient in all aspects, as there would be water, electricity, government office, communication, restaurants, auction house, communication, supermarkets, restaurants, residential and commercial accommodations, infrastructure par international standards, widened road networks, easy payment plan options up to three years, escrow account to safeguard customer investment, gated community with excellent surveillance and security. Further, the facility is in close proximity to the port and airport.

The GCC industries have nearly 8million vehicles, including 2.8mn in the UAE, a central port of automobile supply in the region. The project will help entrepreneurs across all segments of auto industry sectors, both locally and internationally.

Friday, April 13, 2012

UAE Developers urged to slow down housing projects to create market stability


Developers and other real estate investors will have to slow down their housing projects, so as to bring about a balance in the market, following sharp supply which exceeded demand in few areas, said Dubai’s Deputy Ruler on Wednesday.

The UAE Minister of Finance, Sheikh Hamdan bin Rashid Al Maktoum, mentioned that the Finance Minister said that real estate sector in the UAE was hit during the 2008 global economic recession, while there were increased supplies in the outskirts of major cities like Dubai and Abu Dhabi.

The supply to demand ratio was almost 90percent within towns, but, it did not exceed 20 percent in the outskirts. This is largely due to increase in supply in suburban areas, as people prefer to live within the city, considering proximity to work places, the Minister said.

This has been largely due to sharp growth in supplies in suburban areas, as people prefer to live within the city, in proximity to their work offices.

Sheikh Hamdan said that an improvement is expected in the near future, owing to growth in projects and due to increased expatriate influxes into the UAE for work, businesses or tourism purposes.

However, the supply in housing will not increase at present, and so there will be a balance with demand, and the sector resumes its full activity. Hence, it is hoped that the investors and developers will not further increase housing and commercial units, until a relative stability is noticed in the present political situation in Arab countries that have already witnessed tensions recently, he said.

Such conditions can affect any new projects, and thereby, the real estate sector in the country. Once, the regional condition stabilizes, there will be several new projects coming up, which stimulates property sector in Dubai and other parts in UAE, he concluded.

Thursday, April 12, 2012

Nakheel's Palma Residences to be ready within 18 months


Nakheel broke ground on the Palma Residences, Palm Jumeirah, the first project to be launched, following completion of Dh.60bn re-structuring process, and the project is likely to be ready within 18 months.

A total of 30 units worth Dh.223mn have been sold here, and another 30 potential buyers are in pipeline, the Nakheel Chairman, Ali Rashid Lootah, revealed.

The investor confidence is back, and the Company is serious about delivering the project earlier than expected, he added.

On the first day of sales, Nakheel sold 21 units worth Dh.159mn on the first day of sales. Dubai Civil Engineering Company has been appointed as the main contractor for Palma Residences. The infrastructure and construction contract is worth total of Dh.194mn.

The Palma investors are required to make a down payment of 40percent, and they will be issued a title deed within a month. The second payment of 20percent will have to be made before end of 2012, while the next 20percent should be made by June 30th 2013, and the rest towards end of 2013.

Located off the eastern side of the trunk in Palm Jumeirah, the Palma Residences will have a total of 104 Mediterranean-style townhouses. The community is located along six landscaped green areas, covering a total of more than 3,200 square meters.  The units are in the price range Dh.6mn to Dh.8mn.

Lootah emphasized that real estate prices on Palm Jumeirah are higher than that during the pre-crisis levels.
The earlier acting CEO of Nakheel, Sanjay Manchanda, mentioned that there has been great demand for luxury projects and palm properties by Nakheel, and that they are selling for Dh.15,600 to Dh.16,150 per square meter.

According to real estate consultancy, Asteco, the apartment prices in Palm Jumeirah have grown nine percent, touching Dh.12,900 during the first quarter this year, in comparison to fourth quarter 2011.

Meanwhile, Nakheel has confirmed that it is launching several new projects in future. About 8,252 units are being developed across various developments in Dubai. Till date, it has handed over 3,549 units, while the rest of the units planned are due for handover in 2012 and in early 2013.

Monday, April 09, 2012

Prices of the The Meadows villas, surged by 25 percent


A leading real estate brokerage company expert has revealed that the selling price of villas in The Meadows have gone up by 25percent.

Over the past one year, there has been dramatic increase in prices. This growth in value is not just limited to the regions of The Meadows. For quite some time now, demand has surpassed supply, thereby creating a ripple effect to the higher numbered Meadows, said Nick Grassick, Sales and Lead Director, Allsopp and Allsopp.

The Residential Consultant at JBR Office at Better Homes, Sandrine Loureiro, mentioned that the increase has been around 10 to 15 percent this year.

The prices have increased from Dh.1,133 last year to Dh.1,298 in the current year, on per square feet average, thereby indicating a 10 to 15 percent growth. At present, a four bedroom villa in the community is worth over Dh.4.5mn, which can vary with size of plot and the location, Loureiro said.

According to Allsopp, the premium depends on the condition of the villa. A pool and park view is the preferred choice of the buyers, although such villas are rare. An additional premium is applicable for availability of occupation, and the condition such as kitchen and bathroom upgrades.

Further, while higher community charges are becoming cause of concern for several communities across Dubai, the villa owners’ in The Meadows are not facing any unjustified fee hike, which can add to the appeal of the community.

The service charges in the community have remained static at less than Dh.2 per sq.ft. on the BUA for years, although it has marginally grown this year. According to Loureiro, service charges for 2012 are Dh.1.90 per sq.ft. for plot size.

Dubai Land Department to launch new initiative to protect investor rights


Following the launch of two initiatives over the last two years, to revive stalled projects in Dubai, the Dubai Land Department has now unveiled a new initiative, Tanweer, aimed at minimizing legal disputes, so as to protect the rights of investors’.

The Chairwoman of the Centre for Promotion and Management of Real Estate Investment at Dubai Land Department, Majida Ali Rashid, speaking about Tanweer, mentioned that it is designed to improve confidence of investors in the property market. It serves as a reference guide, and is aimed at setting frameworks and general principles of the rights and duties of real estate investors, so as to ensure transparency and promote confidence in the market.

The programme is aimed at contributing to the property sector, encourage and attract local and international investors, improve investor confidence in the property market, ensure transparency during all transactions, serve as an umbrella for protection of investor rights, minimizing legal disputes, and contribute as a whole to the real estate sector and its reflection on the rest of national economy's sectors.

However, details on when the new initiative will be launched, and the manner in which investors can seek protection through it, is yet to be revealed.

The Director General of the Dubai Land Department, Sultan bin Butti bin Mejrin, mentioned that a consultant had already been appointed to review and finalize the real estate investor protection law.

Further, Mejrin mentioned that a new law to protect the rights of property investors will also be issued around mid-2012. This new law will offer clarity on several issues, including steps that an investor can take in case of project delays, and how a contract can be called if the developer fails to fulfil his contractual obligation.

The department has a mediation committee aimed at resolving issues cordially. However, if disputes are unsettled, then either party will have the option to move the court.

Saturday, April 07, 2012

21 townhouses of Nakheel's Palm Residences sold on first day of sales


Nakheel, leading Dubai developer, has sold 21 townhouses for a total of Dh.159mn in Palm Residences and Palm Jumeirah, on day one of sales, it has been announced.

The response to the sale was beyond expectation, said Ali Rashid Lootah, the Nakheel Chairperson.
The buyers were end-users, and regular sale is expected to continue this week too. Construction of the project will begin prior to April-end, with the company expecting to handover the units towards end of 2013.

The investors will have to make 40percent down payment, and they will be issued the title deed within a month’s time. This is the first such time that the company is issuing a title deed for off-plan properties. The second payment of 20 percent will have to be made by end of 2012, while next 20 percent will have to be paid by 30th June 2013, and the rest by end of 2013.

Located along the eastern end of Palm Jumeirah, the Palma Residences include 104 townhouses, and separate gated community with Mediterranean-style design.  The townhouses are priced in the range Dh.6mn to Dh.8mn. The townhouse community is located at the centre of six landscaped green areas, covering a total of more than 3200 square meters. They feature Jacuzzis, seating areas and children pools.

The Chief Executive Officer of Nakheel, Sanjay Manchanda, said that the demand for luxury projects by Nakheel has been high, and Palm properties is now being sold for Dh.15,600 to Dh.16,150 per square meter.

According to leading real estate consultancy, Asteco, the apartment prices in Palm Jumeirah has grown by 9percent, touching Dh.12,900 per square metre during the first quarter, in comparison to the fourth quarter of last year.

Thursday, April 05, 2012

The rent-free periods trend to continue in Dubai leasing market


It has been learnt that leasing firms and owners in certain localities in Dubai, particularly the low to mid range residential units, are offering some concessions to tenants in a rather tough market.

For instance, a tenant renting a double bedroom apartment in Sheikh Zayed Road revealed that the lease contract that was signed last week, came with an additional two month rent free period.

Al Nahda 2, Fizza Properties, is offering a 12-plus-one month free deal, while Sultan Real Estate has been offering a similar deal on double bedroom unit for Dh.38,000 near the Dubai Airport Freezone Metro Station.

One of the biggest real estate agents in Dubai, Better Homes, has been offering two month free rental in Shorooq Mirdiff, its family-oriented project, with rents for a single bedroom costing Dh.40,000 annually.
The Managing Director of Better Homes, Ryan Mahoney, mentioned that tenants are being offering a 14-month rent period at the price of 12 months.

However, Mahoney said that the case may not be true in all parts of Dubai, as one part of Dubai is operating in the opposite direction of another. In fact, there is shortage of residential space in localities such as Marina, Palm Jumeirah and Al Barsha.

When it comes to commercial leasing, the rent-free tenant incentives seem to be a standard offer across majority of commercial tenants. In fact, all of the main central business districts in Dubai, including Jumeirah Lakes Towers, Business Bay, Bur Dubai, and parts of Sheikh Zayed Road, are all offering incentives to tenants, with the exception of DIFC, which is seeing decline in rental values.

The Regional Director for Middle East of Colliers International, Ian Albert, said that the rent-free schemes come as good news for commercial tenants. This is being done largely due to oversupply of units.

Apart from rent-free periods, some owners’ have been offering stepped rentals, wherein attractive rents are being offering during the first year, which goes up incrementally on subsequent years, and capital contribution, with the owner assisting fitting out the office space. Such a policy works for companies that wish to retain their capital for core operations, Albert said.

The Senior Property Consultant with Landmark Properties, Jade Maras, has who has been working in the field of real estate business in Dubai over the past eight years, said that the trend of rent-free incentive periods, is not applicable to certain residential areas such as Skycourts, Silicon Oasis, and parts of SZR. Moreover, in prime residential localities such as the DIFC, Old Town, and Palm, the rents are well established.

Indian Property Show 2012


The internationally acclaimed Indian Property Show is due from 21st to 23rd June 2012 at the Dubai World Trade Centre, Dubai.

This three day expo will offer a brief idea of Indian property market as a whole. More than 300 projects from 70 or more developers will be displayed at the event, which will depict the best of Indian real estate and construction companies. The exhibition will also feature some must-attend property seminars by some of the most influential industry gurus, legal advisers and international fund managers.

Tuesday, April 03, 2012

Dubai Land Department auctions 25 freehold properties this month


The Dubai Land Department (DLD) has auctioned 25 freehold properties this month.  At least 80 properties will be auctioned this year, confirmed Humaid Omran Al Shamsi, Section Head, Auctions Section, DLD.
Among the list of auctioned properties are apartments in the Greens, Jumeirah Beach Residence, Downtown Dubai and Dubai Marina.

The department held two auctions with seven freehold properties last month. Among these, five were sold with bidders paying 8 to 20 percent higher than the reserve price.

Back in 2011, the department had auctioned only 35 freehold and non-freehold properties.

According to Shamsi, in majority of the cases, details of the property such as rented or vacant, the rent period, and the person who is supposed to hando ver the keys, etc., are not provided, and they are valued at five percent below market price.

Only when the property remains unsold, it is re-evaluated and details passed on to the court. Thereafter, the court and the bank decide on when to re-auction the property. However, if the court mentions that the department has the authority to auction the property at a new price, then the department will continue and re-list it for next auction, Shamsi said.

Sunday, April 01, 2012

Al Mazaya resumes work on 67 suspended projects in Dubailand


Leading property developer, Al Mazaya Holding, has announced that it has re-commenced works on its 67 suspended projects in The Villa, Dubailand and its Queue Point, Liwan projects.

Speaking to the media, Khaldoun Abdul Kader, Executive Vice President, Dubai Office Operations, mentioned that already work on 67 unsold villas in Dubailand has begun. The selling process will begin only when the project nears completion.

Kader mentioned that there was a huge demand for medium-sized villas, and they are hoping to complete construction in a year’s time. However, the units will be released only in phases.

As for the Queue Point project, few buildings are ready for handover, but the process was delayed due to lack of infrastructure. However, Kader confirmed that majority of these buildings will be developed, although at a slower pace.

The villa project includes 520 residential villas, with majority of them being handed over. The Queue Point development comprises 44 plots in the Liwan master plan, out of which 37 forms residential buildings and seven have been set aside for office, retail and commercial use.

According to CBRE, the new villa developments lack community amenities, and were experiencing greater pressure on lease and occupancy rates. However, Al Mazaya mentioned that it has been able to solve atleast 80 percent of such issues over the past 18 months.