Tuesday, May 29, 2012

Emaar projects - Panorama and The Views - meets record sales

The latest residential project by Emaar Properties, namely, Panorama at The Views, has met out a record sales, with all residential units being purchased by customers on the opening day.

This overwhelming response to the launch of the residential project, strongly reflects the confidence of investors in Emaar’s project development competencies, and the increasing demand for properties in prime locations in Dubai.

The views by Emaar
Emaar offered several investor-oriented initiatives for the Panorama project, which is in line with RERA (Real Estate Regulatory Agency) guidelines. The project is registered with the Dubai Land Department, and all its units are listed on the department’s system.

Emaar has also established an escrow account for the Panorama, with 20% of the construction value, deposited as bank guarantee in the account. All sales proceeds will then be deposited in the escrow account, which will be used only for construction purposes. Investors, also have the option of making the payments based on construction milestones.

The Emaar Director, Ahmad Al Matrooshi, speaking about the speedy sale of the project, mentioned that the sell-out response to Panorama at The Views, clearly indicates the investor confidence in the project delivery credentials of Emaar, and the positive growth recorded by Dubai realty sector this year.

The investor-focused initiatives offered by the company, further adds to market confidence, and the project will be handed over as scheduled by first quarter of 2015, he added.

Located in proximity to The Greens, Panorama at The Views, overlooks the fairways of the Emirates Golf Course. The development offers 224 apartments, including large single, double and triple bedroom apartments, and three and four bedroom duplex units. The development is the first of several such lifestyle communities planned by Emaar in Dubai.

Wednesday, May 23, 2012

Nakheel launches new studio units along Palm Jumeirah

Leading Dubai-based real estate developer, Nakheel, has launched a new mixed-use residential development along Palm Jumeirah, although the company is yet to issue a tender for the project.

The project, named Palm Views, offers a total of 192 studio units, worth one million dirhams (Dh.1mn), apart from retail space including shops and restaurants are the ground level.

The construction on the development will begin towards the end of this year, and the units will be handed over by first quarter of 2014, according to Nakheel Chairman, Ali Rashid Lootah.

Speaking about the project, he said that the financing of the project is secured, through sales and other sources. Palm Views will seem appealing to youngsters who wish to own a prestigious address at an affordable price.

Located along the east and west marinas of Palm Jumeirah, the development is spread across two buildings, each of which include 96 residential units, apart from fitness club, eateries and shops, and ground-level parking.

This new project is a major shift from Nakheel’s earlier large, luxurious villas and condos projects. Lootah expressed confidence about the sale of this new project, as there is plenty of demand for this sort of project on the Palm.

Back in April, Nakheel sold 30% of its new luxury residential project, The Palma Residences, also based in Palm Jumeirah.

Thursday, May 17, 2012

Dubai real estate recovery among fastest in the world

The real estate prices in Dubai is on the growth path, and is now among the fastest growing in the world, and best in 23 cities, as tracked by real estate consultant, Frank Knight.

The luxury residential real estate prices grew 4% during the first quarter this year in Dubai, said the UK-based consultancy Knight Frank. This is a huge reversal, following drop in residential prices in the emirate following global financial crisis in 2008.

In fact, Dubai’s 4% growth was the best amongst 23 cities tracked by Knight Frank in its quarterly survey this year.

The quarterly index by Knight Frank showed that value of prime properties in major cities fell by 0.4% during the first quarter. Manhattan witnessed a 4% decline, while Shanghai fell 3.2%, reflecting slowdown in the U.S and Chinese markets.

According to Knight Frank, the 4% growth in Dubai in 2012 follows the 2.3% rise during last quarter of 2011, indicating a sustainable recovery. However, there is a long way to go, as the property prices had fallen considerably over the last couple of years, and analysts are of the opinion that there is more pain on the way for the real estate market of the emirate, with new supplies underway.

The residential market in Dubai is likely to see 30,000 to 35,000 new apartments and villas from mid-2011 until 2013, on top of the existing supply base of 322,000 units. This reflects 10% incremental supply, which may depress real estate asset values, said Rasmala analysts, in their note early this year.

Although prices are just 0.3% higher on yearly basis, the Dubai economy has been showing signs of improvement over the past year, with growth in tourism, retail and services sector. Dubai Inc. has been working its way through its massive debt pile, and businesses and investors are gaining confidence.

According to Dubai Land Department, the total residential unit transactions during the first quarter of this year were Dh.3.1bn, marking 9% increase in comparison to previous quarter.

Apart from high-end luxury market, other prime spots witnessing an increase are Jumeirah Beach Residence, wherein rentals have grown 20percent in a year, according to Harbour Real Estate data.

However, despite drop from peak level values in Q3 2008, the villa market saw a growth towards end of 2011, and this trend continued in 2012 too, with sales indices 3% higher than during January 2008, said a Jones Lang LaSalle (JLL) in its report. But, villa sales are still 25% lower than their peak in Q3 2008.

Dubai is likely to see completion of 28,000 new units this year, with 4,380 and 4,242 new units in Dubailand and Jumeirah Park respectively, followed by additional supply in Dubai Marina, Jumeirah Village, Dubai Silicon Oasis, and International City.  The 44% of residential stock added during the first quarter will be located within submarkets of Dubai Marina, International City, Jumeirah Lakes Towers, Discovery Gardens and Dubailand.

Now, with liquidity is returning to residential market, some stalled projects are recommencing, with substantial proportion of supply likely to enter the market this year.

According to JLL, Reidin Residential Sale Indices, the residential market in Dubai seems to have bottomed out, with prices currently at 2008 levels. The villa market too began to see an upward trend towards end of 2011. This trend has continued into 2012, and sales indices in Dubai, now stand 3 percent higher, than in January 2008, the report said.

Monday, May 14, 2012

Three major projects worth Dh 600mn approved in Dubai

Three major projects, worth Dh 600mn have been approved by H H Shaikh Mohammed Bin Rashid Al Maktoum, the Vice-President and Prime Minister of UAE and Ruler of Dubai.

The Director General of Dubai Municipality, Hussain Nasser Lootah, revealed that the Municipality has begun working to develop ‘Dubai Safari’, the project, which will ultimately be home to animals from existing zoo, along with new ones from other places.

The Dubai Safari, is the most important of all the three projects, and is expected to improve living conditions of animals from the zoo in Jumeirah. The Dubai Safari, which will be located in Al Warqa 5 in Aweer Road, spanning an area of 60 hectares, will be completed within a year and a half. It will also include the Butterfly Park, Golf Courses, entertainment and recreational areas, covering a total of 400 hectares.

Among the various stages involved in this project are, the site preparation, preparing internal roads and infrastructure, gardening, landscaping and water bodies, transferring the current animals in the zoo in Jumeirah to new location, apart from ensuring other amenities such as transport facilities, restaurants, rest areas and so on.

Among two other projects aimed for completion are, the Business Bay Canal, and its connection to the sea, apart from construction of dhow wharfage development stretching 3kms between Deira Corniche and Palm Deira.

Speaking about the Business Bay project, Lootah mentioned that this project will help revive the Business Bay Canal as a part of integrated marine system, and transform the area adjacent to the canal as an attractive waterfront.

Monday, May 07, 2012

Rise in JBR rentals indicate Dubai realty market recovery

The residential rents in the Jumeirah Beach Residence (JBR) master community have not plunged. In fact, they are on the increase with average lease rates for double and triple bedroom apartments having grown by more than 20 percent during first quarter of this year, in comparison to last quarter of 2011, thereby indicating recovery in the real estate market in Dubai.

The data by the Dubai-based Harbour Real Estate indicates that double bedroom apartments are being leased for Dh.100,000 to Dh.120,000 per annum during the first quarter, in comparison to Dh.80,000 to Dh.110,000 during September 2011. Three bedroom units are available in the range Dh.130,000 to Dh.150,000 per annum, while the rentals for single bedrooms are Dh.75,000 to Dh.90,000.

The information provided by PropSquare Real Estate reveals that rentals for double bedroom units are in the range Dh.100,000 to Dh.120,000 per annum as against Dh.80,000 to Dh.90,000 per annum in Q4 2011, while rates for triple bedrooms are in the range Dh.135,000 to Dh.145,000 per annum. Rentals for single bedroom units now, are in the range Dh.70,000 to Dh.80,000 per annum, in comparison to the earlier Dh.60,000 to Dh.70,000 per annum.

Asteco's first quarter report revealed that the rentals in Jumeirah Beach Residence grew four percent in first quarter, and single, double and triple bedroom rentals are in the range Dh.70,000, Dh.90,000 and Dh.115,000 p.a. respectively.

Jumeirah Beach Residence is one of the prime freehold localities in Dubai, featuring luxury hotels, restaurants, retail outlets and houses 36 residential towers.

According to the latest report on GCC real estate sector by Global Investment House (GIH), rentals have begun to increase in select areas in Dubai, following considerable decline in rental income last year. The pace of decline in Dubai rentals have decreased considerably thereafter, and is now gradually on the rise in chosen areas with higher quality and demand.

According to GIH, the market is now 20 percent oversupplied, indicating vacancy of 67,000 at present.

Saturday, May 05, 2012

Burooj Views Tower ready for handover in Abu Dhabi

Burooj Properties has announced successful completion of Burooj Views Tower. The main developer of the project, Tamouh, has announced that construction process has been completed and ‘snagging’ process has begun already, and is the first step for handover.

The construction on the project began in 2006, and after having received a building completion certificate from Abu Dhabi Municipality, Burooj Properties has now begun the delivery process.

Burooj Views has drawn considerable investor interest, with its design and panoramic views, constructed over an area of 350,000 sq. mts., comprising a 45 storey tower which houses two luxury penthouses, three parking levels, and 350 residential units.

Given, its prime location as part of Marina Square development at Al Reem Island, it is one of the most attractive residential developments in the Gulf. The Marina, spreading 26.7 hectares, features 14 buildings covering an area of 827,000 sq. mts., forms a part of the 5mn square meters island development, the project gained international interest as one of the first free zones in Abu Dhabi.

Burooj’s portfolio comprises prime locations in the Jawaher Madinat MBZ, the Sharjah Marina, and the Al Qurm Gardens project. At a regional level, Burooj is collaborating with Egyptian Real Estate developer, Palm Hills Development in the new Cairo-based project. The development is a master-planned residential community, and the first joint project between Burroj and Palm Hills.

Thursday, May 03, 2012

Dubai Properties Group re-start work on all of its stalled mega projects

One of the leading master developers in Dubai property sector, the Dubai Properties Group (DPG), revealed that it would go ahead with all its mega projects that were delayed or stalled during the financial meltdown, thereby signalling the much-awaited, strong recovery of Dubai property sector.

DPG said that it plans to complete all projects that were announced by the company, as the market is witnessing re-emergence of investor confidence, while the vibrancy is being restored in the realty market in Dubai.

The Chief Executive of DPG, Khalid Al Malik, mentioned that a clear roadmap is in place to restart all projects that were earlier on hold.

Construction of some of the major mega projects by DPG had been delayed following steep fall in real estate values from its 2008 peaks, following the global credit crisis, which led banks to curtain their lending, and speculators left the market.

DPG has one of the largest fully integrated real estate and community development business developments in Dubai, comprising residential, commercial, staff accommodation, retail, and property management.

One of the major landmark destinations in DPG has drawn 20million or more visitors last year. This year, a 10percent growth in visitor traffic is expected to ‘Dubailand’ and ‘The Walk’ at Jumeirah Beach Residence, which is hailed as the region’s popular beachfront promenade. Today, these destinations are contributing immensely towards boosting tourism in Dubai.

Al Malik also said that all DPG’s destinations, including Business Bay and Bay Avenue continue to contribute to the success of Dubai, making it a top tourist destination, attracting record number of local and international visitors.

However, DPG will continue to support the growth of Dubai, with diverse and groundbreaking communities and destinations, he said.

Launched in 2005, Dubai Properties, with its innovative mixed-use master developments and destinations, has catered to diverse life-styles. Later, in 2008, the company diversified into real estate development and property services too, under the umbrella of Dubai Properties Group.

Tuesday, May 01, 2012

New law mandates complete refund for delay in handover of units

The proposed Investor Protection Law, now promises real estate investors in Dubai, the right to seek cancellation of contracts and obtain complete complete refund, in case of any delay in handover of units, and failure to complete promised amenities as per sales contract.

According to the proposed law, an investor will have the right to cancel contracts and obtain complete refund, if the developer has delayed handover of the units by more than eight months.

According to another provision of the law, it is mandatory for the developer to provide all promised common amenities in the contract at the time of handover. Hence, gymnasiums, swimming pools and other promised amenities in the building will have to be ready before officially handing over the key to owners. Failure to do so, will lead to cancellation of contract.

Another proposed provision in the law states that if a unit turns out to be 30 percent smaller than actual net area in the contract, the investor will have the right to cancel the contract and obtain complete refund.

In case of off-plan sales, the draft proposes to make it mandatory for developer to obtain all RERA approvals and register all saleable units with the Oqood system of Dubai Land Department, the online registration system. The developer is obliged to register all contracts with RERA, and disclose all information about the project’s handover, escrow account etc.

The draft law mentions that a reservation form will be considered “void” if the developer has failed to offer the investor an agreement within 15 days of signing the reservation form.

The Director General of Dubai Land Department, Sultan Bin Mejren, mentioned that the department has completed finalization of the draft law regarding protection of real estate investor, and the law will be implemented by June-end.    

According to Managing Partner of HPL Yamalova & Plewka, JLT, Ludmila Yamlova, mentioned that various provisions mentioned in the draft are helpful for investors, particularly, as it gives them the right to cancel, rather than just seek compensation.