Tuesday, October 30, 2012

25 to 30 percent growth in prices for Springs Community villas

The villas in Springs Community of Dubai have registered an increase of 25 to 30 percent a year.

According to data by PropSquare Real Estate, a Dubai-based real estate agency, prices of double bedroom villas grew to Dh.1.60mn in October this year, in comparison to Dh.1.25mn during the same month last year, while the three bedroom villas were priced at Dh.2.4mn in comparison to Dh.1.75 million.

During the third quarter of the year, the prices jumped 10 percent, touching Dh.1.60mn from Dh.1.45mn in the second quarter, while three bedroom villas grew nine percent touching Dh.2.4mn from Dh.2.2mn.

The Director of PropSquare, Faisal Baig, said that there is huge demand for Springs villas, and people are willing to pay a premium for them. However, the growing demand for villas are creating problem for real estate brokers, with owners cancelling agreements in the last minute hoping to land on better offers. This tendency is largely noticed among owners in the Meadows, Springs, Arabian Ranches and Jumeirah Islands.

According to Properfinder .ae, the average listed price for a double bedroom unit is Dh.1.6mn, in place of average price of Dh.1.2mn to Dh.1.25mn last year.

The property agents said that banks are comfortable to lend for these villas, as Springs villas are huge liquid assets. The Springs comprises townhouses built around man-made lakes. Majority of the properties here are double to four bedroom townhouses and are located in proximity to The Greens and The Meadows.

Saturday, October 27, 2012

Business Bay, Culture Village, freehold land plots sold in public auction

Two freehold land plots, located in Business Bay area and Culture Village, in Dubai have been sold in a public auction for the first time ever, with a reserve price of Dh.53.44mn and Dh.32.10mn respectively.

The Dubai Land Department, after a five-month break, has announced its new auction list of these two land plots, and seven apartments in November.

The size of the plot in Culture Village is 11,037 square metres, which can be for mixed-use or a residential ground-plus 29-floor tower. The plot will be auctioned on 12th November.
The commercial plot in Business Bay to be auctioned on 14th November spans 4,970 square meters, with a ground plus 19-storey.

A 1,355 square meter apartment in Le Reve, a luxury tower in Dubai Marina, will also be auctioned on the same day, with reserve price of Dh.9.5mn.

Among the other properties are a leased apartment in South Ridge 1, Downtown Dubai, for Dh.1.4mn; a 138 square meter apartment in Al Arta 2, Al Thannyah Third for Dh.1.15mn, and a villa in Al Thannyah Fourth, spanning 1,387 square meters for Dh.7mn.

On 19th November, a non-leased 150 square meter apartment in Marina View Tower A will go under the hammer, with base price of Dh.1.14mn, and bids for a 89 square meter apartment in the tower starting from Dh.800,000.

A 121 square metre apartment in Madison Residency, Al Thannyah First, will be auctioned with a base price of Dh.1mn, with the unit being leased for Dh.62,000 a year. Bidding for non-leased 145 square metre apartment in Al Fairooz Building in Dubai Marina Will start from Dh.1.3mn.

The Section Head at DLD, Humaid Omran Al Shamsi, said that nearly 80 properties will be placed on auction this year. Last year, DLD auctioned nearly 35 freehold and non-freehold properties, out of which, only 9 properties have not been sold.

Monday, October 22, 2012

Dubai real estate market indicates gradual recovery

The real estate sector in Dubai is showing signs of gradual recovery, with residential demand picking up in prime established communities, and banks beginning to lend again. Moreover, the increased tourism stimulates demand for hotel properties, said developers, when speaking during the just concluded Cityscape Global 2012, the region’s biggest property event.

The 11th edition of Cityscape Global was unveiled in Dubai on Tuesday by Shaikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, the Deputy Ruler of Dubai.

Nearly 26,700 residential units are likely to be ready from 2012 to 2014 outside Central Dubai in areas such as Jumeirah Village, Dubailand, Dubai Silicon Oasis, Dubai Sports City and Al Furjan, said the Jones Lang LaSalle (JLL) report titled ‘Dubai Real Estate: Market overview Q3 2012.’

Real estate developers at the event said that they are hoping for the market to climb up over the next 12 months. The CEO of Dubai Properties Group, Khalid Al Malek, said that there is already a growth in demand and supply over the past 12 months, with highest demand being for residential units, and particular demand being for villas, followed by single and double bedroom apartments. Areas with good transportation and infrastructure will perform better.

According to Damac Properties, the company will have atleast 4000 serviced hotel apartments that are under construction, by end of next year. The Senior Vice President of Damac, Niall McLoughlin, said that there is an upturn noticed in the Dubai realty sector.

The prices for properties in Downtown Dubai, Dubai Marina and Sheikh Zayed road has seen price appreciation, while secondary areas such as Dubailand and Emirates Road too, will see good value for money, and make potentially good property investments.

Further, there has been considerable increase in demand for holiday homes in Dubai from India and Lebanon, and for purchase of apartments for foreign students studying in Dubai.

The Cityscape Global 2012 edition has been highly successful having received good response. It has grown by 50% from last year, with more than 20,000 participants. The show also included investor round table sessions, four dedicated industry conferences, including the Global Real Estate Summit, the World Architecture Congress, the Retail City Conference and Alternative Dispute Resolution Conference.

Tuesday, October 16, 2012

Business Bay, Downtown master communities to be interlinked

Two major master communities in Dubai, the Business Bay and Downtown Dubai, will finally be interlinked by the year-end.

These districts will be linked by a road and tunnel that will reduce travel time and offer better accessibility to residents and visitors alike.

The Chief Executive Officer of Dubai Properties Group (DPG), Khalid Al Malik, said that the Roads and Transport Authority (RTA) will be working to link Business Bay with Downtown Dubai, together by roads and tunnels by the year-end.

He further said that the developers will have to take care of their own infrastructure development, while the authorities will be responsible for taking care of the infrastructure components that belong to them.

While the RTA is working on the roads and bridges, the Dubai Electricity and Water Authority (DEWA) is working on two new substations and Empower is developing the second cooling station in Business Bay.

DPG has confirmed that sewerage system and portable water system have been installed throughout the district, apart from new irrigation system, traffic lights and street lighting.

The Dubai Executive Council’s Infrastructure and Environmental Committee has last month discussed the infrastructure issue of Business Bay.  It was then decided to establish a work team comprising Finance department, Dubai Municipality, Dubai Land Department, DPG, DEWA, RTA and other bodies, who would look into various aspects of the project such as water channel, transport, infrastructure, sewage and drainage system, telecommunication, road lighting and cooling. The committee will also extend support for development.

Business Bay is buzzing with construction activity at present, with people having purchased plots lately in the area. They are either in design phases or under construction. Al Malik said that the company has no remaining land plots to sell in the master development.

Business Bay covers 5.9mn square meters of area, and is likely to serve 200,000 people on completion.

Tuesday, October 09, 2012

Housing units in International City records 40% growth in prices

The prices for apartments in the International City have grown by more than 40 percent over the past one year. The prices had earlier dropped below their 2002 launch rates.

The prices for studios are in the range between Dh.250,000 to Dh.270,000 in October 2012, marking an increase from Dh.150,000 to Dh.170,000 during same period last year, reveals latest data.

While studios were sold for Dh.220,000, single bedrooms were sold for Dh.320,000 during the launch, with property owners offering 10 to 15 percent discount to lure buyers.

The studios and single bedrooms in Spain and England cluster are now on the highest asking rate of Dh.265,000 to Dh.270,000 and Dh.365,000 to Dh.370,000 respectively.

On the other hand, few units are still being sold at lower prices. According to property agents, these units require renovation, and hence prices are low. Moreover, the apartments at International City are mostly being purchased for staff accommodation than for individual use.

According to data by Dubai Land Department, nearly 1730 transactions worth Dh.523mn have been registered in the International City. While International City recorded Dh.2.5bn worth registrations in 2009, the value fell to Dh.500mn in 2011.

Launched in July 2002, the International City project comprises a residential district, and a central district. The residential district spans an area of 300 hectares and comprises 387 buildings (including residential and retail units). The Central District covers 21 hectares with 34 plots.

The DLD Director General, Sultan bin Mijren, expressed an improvement in overall market sentiment in Dubai property market, thereby indicating revival of Dubai real estate market, with prices having gone up in certain locations.

Thursday, October 04, 2012

An overview of Cityscape Global 2012

Cityscape Global 2012 was unveiled on 2nd October 2012, with huge crowds thronging into the Dubai International Convention & Exhibition Centre at Dubai World Trade Centre. This 11th edition of Cityscape Global, the region’s largest international real estate events, was officially unveiled by Shaikh Maktoum bin Mohammed bin Rashid Al Maktoum, the Deputy Ruler of Dubai.

The official opening ceremony began with welcome address by H.E. Eng. Hussain Nasser Lootah, Director General of Dubai Municipality, and the ceremony involved participation of several VIPs. H.H. Shaikh Maktoum toured the exhibition visiting the stands of all major developers from Abu Dhabi, Dubai, Qatar, Iraq, Turkey and Russia.

This year, the Cityscape Global Exhibition has been 50% larger, featuring major developers from 31 countries across the globe. This year too, the event involved participation of major developers such as Meydan Group, Sobha Group, Dubai Properties Group, Barwa, UDC, Emaar, Al Futtaim Group and Agaoglu (Turkey).

Among the other major international developers are Ministry of Construction and Housing in Iraq (Iraq pavilion), Tata Housing Development Company (India pavilion) and United Development Company (Qatar pavilion).

The three-day event which concludes on 4th October at the Dubai International Convention and Exhibition Centre focuses on exhibitor announcements from UAE and international developers, hosting investor roundtables, conferences, and extravagant dinner awards ceremony.

Major UAE projects

Leading the charge in the UAE, is the Meydan Group, which announced the launch of brand new tower on Sheikh Zayed Road, which includes residential, commercial and leisure options at the heart of Dubai. It offers office and retail spaces, serviced hotel apartments and hotel, private sky gardens, restaurant, nightclub, indoor running track, infinity pools and tennis court.

Meanwhile, Damac Properties showcased its serviced hotel apartment and brand new Suites & Spa service at Cityscape Global. Damac offered five-star management and concierge services across the hotel apartment offering, promising 4000 hotel apartments under development by end of 2013.

Other major UAE developers that participated in this year's Cityscape Global are Foundation sponsors Emaar Properties, Dubai Properties Group and Nakheel, apart from Meraas, Falconcity of Wonders, and Tourism Development and Investment Company (TDIC).

Meraas Holding pavilion explained visitors about various projects of the company in Dubai, including Jumeirah Island project, and Meraas Beach development stretching 600 metres in length.

Meanwhile, Nakheel briefed visitors about Jumeirah Park project Phase II comprising 377 luxury villas near Sheikh Zayed Road, while the Falconcity of Wonders (FCW) showcased the company’s multipurpose mega project comprising various residential and commercial buildings, including huge retail hub by the company.

The TDIC pavilion displayed the Saadiyat Island development project. Thereafter, H.H. Sheikh Mohammed launched the Mohammed bin Rashid Gardens project, which is a collection of neighbourhoods centred on ‘garden living’, with infrastructure resembling modern residential locales. The various elements of the project will be linked by canals and lagoons, apart from walking and jogging paths, bicycle track, and sports amenities.

Projects in GCC and international markets:
Barwa Real Estate from Qatar was another headline exhibitor at the Cityscape Global, which is expecting a big year this year, delivering a portfolio of mega developments including Barwa Commercial Avenue, Barwa Al Sadd, Barwa City and other iconic developments.

UDC, the master developer of ‘The Pearl Qatar’ focused on showcasing the development, apart from displayed select residential properties for sale including Porto Arabia units in the island’s Porto Arabia district, and Medina Centrale, offering unique advantage for trade and investment.

Real estate giants such as Emaar and Al Futtaim Group announced plans to enter into a Dh.3bn joint venture to develop ‘Cairo Gate’, the lifestyle and entertainment development on the Cairo-Alexandria desert highway. Emaar also announced $2.1bn ‘Emaar Square’ in Cairo, a city within city development, in its flagship Uptown Cairo project.

The Exhibition Director for Cityscape Global, Wouter Molman, said that there has been significant increase in real estate companies and developers in Cityscape Global, who are seeking a new breed of international investors.

The growth of the event is largely due to overseas participation from countries such as Bahrain, Lebanon, Qatar, Egypt, and further afield including Poland, UK, Russia, Chile, Brazil, India, USA and Turkey, he added.

The real estate sector in Dubai is all set for double digit growth over the next three years, due to constant stream of fresh project deliveries, with a new series of projects having hit the market during the first quarter of 2012.

Along the sidelines of Cityscape Global, are the Cityscape Awards for Emerging Markets on 3rd October. The awards programme attracts several architects and developers behind real estate developments across emerging markets globally.

Also co-located with the expo are the three dedicated conference programmes, which include the Global Real Estate Summit, World Architecture Congress and Retail City Conference.

Taking into account the considerable growth of Cityscape Global 2012 edition over that of last year’s, coupled with increased display area by 50%, H.H. Sheikh Mohammed expressed his satisfaction, and said that the year 2012 marks a vigorous and healthy comeback for the real estate sector in Dubai.

Monday, October 01, 2012

New Jumeirah Park Legacy Villas on launch by Nakheel

The Dubai-based master developer, Nakheel, yesterday announced the launch of Jumeirah Park Legacy Villas, forming a part of 350-hectare master community that comprises total of 2000 villas.

The Nakheel Chairman, Ali Rashid Lootah, mentioned that Nakheel is transforming a major part of desert into a vibrant group of communities, offering quality living in premier location.

Nakheel, early this year, launched the Palm Residence and Palm Views East and West on the Palm Jumeirah.  Located adjacent to the Jumeirah Islands community, the Jumeirah Park offers three distinct styles of villas – Legacy, Regional and Heritage.

The Legacy type villa offers a large open hall overlooking the back garden and a closed kitchen, while the ground level includes a guest room, while the first floor has four bedrooms each with its own terrace. Every villa will have closed garage for two cars and a large backyard garden.

Residents can also have access to a range of shops and other services within the development, including the community shopping centre, Mosques, restaurants, school, police and fire stations and landscaped gardens.
Nakheel is yet to reveal the prices of the villas. There are four-bed legacy villas that are listed for sale in the secondary market that are in the range Dh.4.2mn and Dh.5mn.

The developer is expecting a sell-out of 360 four and five bedroom villas during the public launch. Nakheel is offering 15% down payment and rest of the amount to be paid in easy instalments over the next three years.

During the month of July, Nakheel signed a Dh.27.5mn contract for construction of new Jumeirah Park Community Centre, spread across 10,600 sq. mts.

The Parkway International Contracting has been appointed the main contractor for the community centre, which will primarily serve 4200 homes in Jumeirah Village Triangle, Jumeirah Islands and Jumeirah Park. The construction of the park will be completed within a year.