Monday, July 30, 2012

Al Badia Townhomes handed over in Dubai Festival City


The mega project by Al Futtaim Real Estate Group, namely, the Dubai Festival City, has completed handover of its new Al Badia Townhome to its owner, thereby marking its first sale post project launch.

The freehold sales of 24 townhomes in the third phase of Al Badia Residences, overlooking the championship Al Badia Golf Course, were announced in June this year. The starting price for Al Badia Residences, Phase 3, is Dh.4.8mn.

It was the Dubai-based businessman, Saeed Naderi, who first received keys to his 3,800 sq. Ft. four bedroom townhome, during a ceremony, held to mark the conclusion of a transaction that was completed within three weeks.

According to the General Manager, property sales at Dubai Festival City, Ian Plumley, this first handover of homes, following launch of freehold properties of Al Badia phase 3 townhomes, indicates the upswing in consumer sentiment for top quality homes in Dubai.

A strong customer response was received following launch of townhomes, not only from UAE, but from Middle East and Asian regions, Plumley pointed out.

Naderi, who now owns a spacious Mediterranean-style townhome comprising a private landscaped garden, garaging, and access to swimming pool and health club in the community, expressed happiness over being part of Al Badia community and the fact that Dubai Festival City is now a permanent home for him.

Al Badia Residences Phase 3 comprises three types of Mediterranean-style Townhomes ranging 4 and 5 five bedrooms. These townhomes are in the range 3800 sq ft to 5100 sq ft and includes a dedicated landscaped garden, two apartment buildings, a community pool, children playground, all of which makes the community popular within Al Badia Residences.

Thursday, July 26, 2012

Dubai realty sector on growth track: Emaar


Despite the downward pressure from constant supplies in the Dubai real estate market, the Dubai-based master developer, Emaar Properties, is of the opinion that Dubai realty market is now on the 'growth track'.
Speaking to the media, a spokesperson of Emaar, said that the overwhelming investor response received following the launch of 'Panorama' at 'The Views', wherein the entire units were sold on the first day of the launch, it seems that the Dubai property market is on the growth track.

Emaar also saw a good customer response for launch of their townhouses at Arabian Ranches too, which indicates the growing customer confidence in Dubai real estate market.

The once thriving real estate sector had witnessed decline in prices and rentals since late 2008, when the global economic downturn hit the emirate. Analysts are of the opinion that real estate prices will soften further this year, with more supply coming on stream.

Leading real estate consultancy firm, Jones Lang LaSalle (JLL), in its latest market report, said that nearly 24,000 additional residential units are due for delivery during second half of the year 2012. This is after nearly 3000 housing units were added to Dubai market during second quarter of the year, making the total residential stock to 344,000 units.

According to an analyst at JLL, Craig Plumb, Dubai is on growth track, with some parts growing like in prime areas, but, may be too early to say that the whole market is growing, but, some parts in prime localities are growing. To what extent this growth is sustainable, will depend on the ongoing supply, he said.

While Emaar is established in building high-profile communities like the Downtown Dubai, the not so established communities such as the Dubai Sports City are still witnessing decline in sales and rentals, and this trend will continue during the year, the CBRE analyst, Mathew Green, pointed out.

Monday, July 23, 2012

Ejadah to unveil range of solutions to realty developments, communities


Ejadah Asset Management Group will unveil a range of services to offer total solutions to real estate developments and communities in the region, including commercial, residential, hospitality, retail and mixed-use.

Among Ejadah’s customers are flagship communities such as TECOM, DIFC, Jumeirah Beach Residence (JBR) and Business Bay. Ejadah has been working to boost the value of real estate assets and developments, apart from offering sustainable living conditions for residents within the communities it manages.

The solutions of the company are tailored to offer a consistent environment and lifestyle to its customers throughout the 24 hour cycle, from their residence in JBR to their offices in TECOM or DIFC, and even ensuring their safety while shopping at Dubai Mall.

With long-term and integrated asset management getting more important for real estate owners seeking to safeguard their investments and assets, and reducing their operational costs, Ejadah, through its total solutions, offer maximization of client's asset values and yields, quality of services by way of amenities and infrastructure management, asset protection through total security solutions, and maintaining robust supply chain and cost efficiency and utility management.

The CEO of Ejadah, Billy Daly, said that developers, owners and investors, are seeking a comprehensive range of real estate management and community solutions that are tailored to suit their individual needs, and maximize the value of their assets and improve lifestyle of their customers and residents.

Ejadah, through its entities, serves some landmark developments in the region, and world, thereby contributing to the brand value of the communities and the brand of Dubai as a whole.

Ejadah Asset Management Group has improved its services and business offerings through three main subsidiaries – facilities management solutions provided by Idama, property management solutions by Taziz, and security management solutions by Arkan. Further, Ejadah has also launched a community portal in JBR, aimed at offering community services, improving communication and lifestyle of customers by providing wonderful packages and offers.

Tuesday, July 17, 2012

Villa rentals in prime buildings of Dubai, up by 10%


Rentals for villas and established communities in prime buildings across Dubai have grown 10 percent and 9 percent respectively, during second quarter of the year, in comparison to same period last year.

As for property prices, the Jones Lang LaSalle (JLL) report said that villas have registered 21 percent growth, while apartments continued to remain stable, year-on-year.

JLL, in its report, quoting the Reidin Residential Sale Indices, said that the residential market seems to have bottomed out, while the villa market has begun to see some upward movement towards end of 2011, and this trend has continued into 2012.

In fact, during the month of May, the villa sale indices have growth by 21 percent year-on-year, and now stand 9 percent higher than 2008 levels, the report said.                          

Meanwhile, the apartment sale indices remained stable, although they were 18 percent lower in comparison to January 2008.                      

Quoting Reidin’s rent indices, JLL report said rentals for villas and apartments have grown by 10 percent year-on-year. According to JLL, rents and prices will continue their upward trend for rest of the year. Nearly 3000 new housing units have been added to the market in the second quarter, making a total of 344,000 units.           

Monday, July 16, 2012

Dubai realty market protects investor confidence with new impending law


The real estate sector in Dubai, currently ranked as the most transparent market in the Middle East North Africa (MENA) region, is in for a further boost, with the enforcement of an impending law, aimed at protecting investors, said a global financial and professional services company, specializing in real estate.


The new law permits investors to cancel their contracts and get back their money, if the developers violate the terms and conditions. This is likely to boost investor confidence, says Jones Lang LaSalle (JLL) in its review on the real estate market in Dubai. This will further, pressurize the developers to complete their projects.

As per the new law, there will be increased transparency in the market, and with better regulation of real estate market, investors can cancel their contract if the real estate handover is delayed for more than a year. In fact, the new law permits investors to have the option to demand compensation in the event of defects in the property when it is delivered.

With constant demand for quality, there is improved investor confidence, given, the well-located, income producing assets, said JLL in its report. Majority of transactions have been recorded during first half of the year.

Residential

The overall residential market too, is witnessing a positive trend, with villa market outperforming the apartment sector in second quarter of 2012, the report said.

Prime residential buildings in prime locations have shown better performance, while the secondary locations are continuing to suffer decline in rental and pricing, it said.  Nearly 3000 additional residential units have been added to the Dubai market, making a total of 344,000 units of total residential stock.

Among the notable projects handed over this quarter are The Villa Phase 3 in Dubailand, two towers in Dubai Marina, three buildings in Dubai Silicon Oasis, and a complex comprising 26 buildings in International City, the report said.

Office sector

As for the office sector, there has been limited office supply during the first half of the year. The asking rents for prime office space remain flat during the second quarter, while secondary rentals have softened. Occupier consolidation is the main focus in line with global trends. Larger companies have continued to show interest in upgrading premises, with improved flexibility in their leases.

Retail

There is sustained demand for retail space in the best performing super-regional malls, including the Mall of Emirates and Dubai Mall, which has resulted in increased rentals, JLL said. With the retail market getting increasingly two-tier and older, the less popular malls are witnessing weakened demand from retailers and consumers, with mall owners having to consider new marketing techniques and product positioning.

Hotel

The hotel sector has seen recovery in 2011, which continued further over the first half of 2012, with occupancy levels improving to 83 percent from 79 percent during the same period last year. The growth has been mainly supported by a strong tourism sector, with increased number of visitors, said the JLL report.

Sunday, July 15, 2012

Dubai developers coming up with series of new launches in the market


The developers in Dubai are planning to test market sentiments with a series of new launches, for the first time since end of 2008, despite the imbalances in demand-supply equation, said a recent media report.

Over the past four months, five developers have released fresh stock into the market, with latest being in Dubai Festival City, offering 24 townhouses at prices in the range Dh.4.8mn.

Earlier, Emaar and Nakheel announced residential launches within their existing developments, while Al Barari, came up with its limited supply of 33 premium villas. Also, there was the launch of a mid-priced offering in the form of Ritaj master-development in Dubai Investments Park.

All these launches attribute the gradual return of investor confidence in the local real estate market, wherein residents are seeking homes in a still soft market.

The latest launch in Dubai Festival City, within the Al Badia Cluster, is its second ever. Three years ago, nearly 10 townhouses were sold, although that was not an official release of a particular phase. According to Ian Plumley, General Manager for property sales, it was done to meet the needs of some long-term tenants, and hence the properties were sold to tenants who were living in there.

A major positive aspect for the development here, is that the investors can take immediate possession of their properties, as they are all completed, and this is a first for new properties in Dubai, said Mario Volpi, Head of residential sales at Cluttons.

Asteco reported that villas at Arabian Ranches were 16 percent higher during the second quarter. The Springs recorded 14 percent gain, while it was 11 percent at Jumeirah Islands. The increases in other villa dominated developments in the emirate were in the range 6 to 8 percent.

Although majority of new launches cater to high-end investor, maximum activity is for properties in the Dh.1mn to Dh.2mn category. At least 25 percent of properties fall into this category. According to Land Department, the Burj Khalifa sub-market, including the Downtown, Business Bay and Old Town, is the most sought-after area, with 50 percent of all transactions happening in these areas, Volpi said.

Saturday, July 14, 2012

Lime Tree Valley villas to be delivered by early 2013


The handover of villas in the Lime Tree Valley project will commence by early 2013, the developer, CHI Development Group, has announced.

The developer of the 121 villas along the Earth golf course, designed by Greg Norman, the Director of CHI Development, Roger Wakeham, said that the handover of the villas are anticipated from the year-end, up to first quarter of 2013.

The infrastructure in Jumeirah Golf Estates is slowly nearing completion, with power connectivity anticipated in September, and all other utilities ready for connections. Several buyers are now planning their interior furnishings and are waiting to be the first residents of Jumeirah Golf Estates.

Speaking about Lime Tree Valley, Wakeham pointed out that there are several strong points for Lime Tree Valley, such as the variety of villas on the offer, the quality of build, the views of the Earth golf course, connectivity to major landmarks and roads, the peace of living in the countryside, and benefits of living in Dubai’s only gated Golf Community.

The HSBC and Dubai Islamic Bank have provided end-user finance for the project, and are now negotiating with other banks too.

Although, there has been a dip in property places in the UAE over the past few years, established villa communities are seeing price gains, Wakeham pointed out.

The CHI Development is a UAE-based property developer, established in 2005, and Lime Tree Valley is their flagship project. It comprises eight Mediterranean styled villas ranging from four to six bedrooms, with sizes ranging 4200 square feet to 7000 square feet of built up area, while plots vary from 8000 to 15,000 square feet.

Tuesday, July 03, 2012

Dubai real estate market exudes optimism: Asteco


The outlook of the Dubai real estate market for second half of the year seem quite optimistic, with a steep increase in renting and purchase during second quarter of the year, said Asteco, the leading Dubai-based real estate services provider.

Commenting on the status of Dubai real estate market during the period April to June this year, Elaine Jones, the CEO of Asteco, said that after three years of declining rates and limited sales activity, the property market is now on way to recovery, with established communities showing increased values and higher transaction volumes.

The apartment rentals and sales prices have gone up by 10 percent and 9 percent respectively, while villa rentals and sales prices have grown by 13 percent and 16 percent respectively.

Apartments in prime localities such as the Dubai Marina district and Downtown Dubai have been most sought after, meeting a 10 percent growth, during the second quarter, with double bedroom apartments costing Dh.90,000 to Dh.120,000 per annum.

Villas on the Palm Jumeirah, costs Dh.17,200 per square meter, followed by Dh.10,750 per square meter at the Jumeirah Islands.

Rentals in affordable communities such as the Discovery Gardens, too, witnessed a nine percent growth quarter-on-quarter, while there was no rental decline reported in International City, during first half of 2012, Asteco reported.

During the next half of the year, increase in sales prices are likely, particularly for quality developments. Further, there will be increased demand from overseas buyers seeking to escape economic woes in the eurozone, and political instability in other parts of the region, Asteco said.

Dubai has a total of 9.1mn square meters of office space, while another 770,000 square meters of new space will be released in the second half. Nearly 5000 apartment units have been handed over with majority located in Downtown Dubai, Dubai Marina, Dubai Silicon Oasis, Sheikh Zayed Road, and International City.