Monday, March 25, 2013

Women constitute 23 percent of real estate investors in Dubai

Women investors have spent Dh.13.3bn on real estate market in Dubai in 2012, constituting 23 percent of the real estate market in Dubai.

The data from Dubai Land Department (DLD) reveals that 5434 women invested in property. This was a slight increase, in comparison to 4704 female investors who invested Dh.10.5bn into the real estate market the previous year.

According to finance advisers and real estate analysts, there has been an increase in demand by women investors for properties, lately.

Majority of homebuyers today are single women, and the numbers are growing. This indicates that property investments are no-longer an exclusive male province, said Sandi Saksena, Sales Manager, Nexus Insurance brokers.

Although women investors constitute only a small percent of the total percentage of investors till date, the trend is fast changing, and these days, women, married or unmarried, is taking deep interest in purchase of property more than before.

Majority of women investors are those who made their money from business. Property is a solid investment, which women prefer over stocks and shares, as they feel they can relate to property more easily, said Helen Tatham, Director of Residential at Knight Frank.

According to analysts, greater access to market information, and the desire to be financially independent and banking services directed towards women are all contributing to women’s interest in the real estate market.
The GCC is seeing two kinds of female investors. One is an Emirati lady who has been and will continue to invest in real estate in their home country. The other is an expatriate woman, married or single, with independent income and would prefer to live in her own home than rent.

Sunday, March 24, 2013

Meydan City luxury villas to be ready by 2015

Construction on a Dh.1.2bn luxury villa development on the south extension of Meydan has begun, and will be ready by 2015, revealed G&Co., a Meydan City sub-developer.

It has secured funding for the project from a major lender in the local market, said Zafer Taher, the Chief Executive Officer at G& Co., during the launch of the project.

The land for Millennium Estates project was purchased by G&Co from Meydan in 2010. The Millennium Estates is a gated community comprising 198 luxury villas, spanning across 3.8mn square feet of land.  The property will be available on freehold basis.

The villas range in sizes from 5400 sq.ft. to 6800 sq. Ft. of living space, with price of Dh.1063 per square foot in gross floor area, said Joseph Ghoussoub, Chairman of G&Co.

The prices of real estate properties in gated community near Meydan’s grandstand range from Dh.5.74mn to Dh.7.2mn.

Payment plans have been set at 10 percent on booking, 10 percent after 60 days, 5 percent after 120 days, and remaining 75 percent during handover of units, said G&Co in its statement.

The project contractor is yet to be announced. The infrastructure works will be handled by Meydan, the master developer of Meydan City. Located in the inner circle of Meydan the gated villa community, is located in proximity to Meydan Grandstand, deep into Nad Al Sheba along the Emirates Road.

The villas have been designed in three different styles, including gardens pace. The development has walkways and parks that form part of Meydan City.

Last year, meydan announced the Hadaeq Shaikh Mohammad Bin Rashid Project, a green-living community development.

The Head of Commercial and Free Zone at Meydan, Mohammad Al Khayat said that these and other developments in Meydan City are not competing with one another, as they cater to various end-users and have different designs and prices.

Friday, March 22, 2013

Cheapest and costliest areas to rent studios in Dubai

According to RERA rental index, the rentals for studio apartments in International City and Dubai Investment Park (DIP) remain lowest among Dubai freehold communities, while the lease rates in Downtown Dubai is the highest.

Lease rates in International City is in the range Dh.20,000 to Dh.25,000 per annum, which has grown by 33 percent, in comparison to the final index update of 2012. Rentals for single and double bedroom apartments continue to be the lowest in International City. Single bedrooms are available for Dh.25,000 to Dh.35,000 p.a., while double bedrooms are in the range Dh.35,000 and Dh.40000 p.a., followed by DIP, DSO and IMPZ.

The rentals for studios in Dubai Investment Park are currently in the range Dh.20,000 to Dh.25000 per annum, which remains unaltered, in comparison to the last updated index.

Rentals for studios in Dubai Silicon Oasis (DSO) are in the range between Dh.25000 to Dh.30,000 per annum, while leases in International Media Production Zone (IMPZ) are in the range Dh.22,000 and
Dh.30,000 p.a. In Discovery Gardens, the lease rates vary from Dh.25,000 to Dh.35,000 p.a., but overall have registered a 17 percent growth.

The most expensive community to rent a studio is Downtown Dubai, with rentals falling in the range Dh.55,000 and Dh.75,000 per annum. The Dubai International Financial Centre follows with rentals in the range Dh.45,000 and Dh.70,000 per annum.

The rent index aims to provide tenants and landlords with a guideline to rent pricing, and is updated thrice a year.

The Asteco Managing Director, John Stevens, said that if demand continues, there will be a shift in the market from being predominantly tenant-led market to one controlled by landlords, particularly in quality, well-managed and established developments.

Thursday, March 21, 2013

Apartment prices spike by 10 percent in Jumeirah, Dubai Marina

Apartment prices in Dubai Marina and Jumeirah Lake towers, two of the established lifestyle communities in Dubai, have recorded an average increase in price of 8 to 10 percent in the last six months, a new report said.

The price gains in Dubai real estate sector is mostly for residential developments, and highlights a major recovery in property sector sentiment across the city, a report from the Valuation & Research team of Hamptons Mena said.

The Valuations & Research team at Hamptons MENA, a property service company, undertakes regular evaluation of property price trends in Dubai, to offer expert advice to clientele.

The Manager – Valuation and Research at Hamptons MENA, Declan King, said that the positive gains reported about properties in Dubai Marina and Jumeirah Lake Towers indicates the investor confidence in Dubai property sector strengthening across the board.

Earlier, the demand and prices were mostly confined to a few select neighbourhoods, but now, investors are able to see stronger value proposition in the city’s property, led by the vibrant economic fundamentals of Dubai, he pointed out.

Reports by Dubai Land Department too, indicate that premium and secondary towers in Dubai Marina show an average of 8 to 10 percent growth in prices over the past six months.

While premium towers which have traditionally been sought-after in Jumeirah Lake Towers recorded similar growth trends, the price increases by secondary apartments here were about 3 to 5 percent.

The ideal location of Jumeirah Lake Towers, in proximity to Sheikh Zayed road, at the heart of New Dubai, the main arterial between Dubai and Abu Dhabi, Al Maktoum International Airport, the Dubai Logistics Corridor, and between two operational metro stations, makes it the ideal place to live, work and play, the report detailed.

Monday, March 18, 2013

RERA Rental Index guideline for 2013 released

The Dubai RERA (Real Estate Regulatory Agency) latest rental index for the year 2013 shows that 'The Greens' community by Emaar, draws the highest rentals, surpassing the Dubai Marina and Downtown

Dubai, which saw the highest transaction activity and price hikes last year.

Emaar's The Green community showed 22 percent hike in rentals for studio, 15 percent for single bedrooms and 28 percent for double bedroom apartments.

The RERA index is usually updated thrice a year. The current rents for studios fall in the average of Dh.45000 and Dh.55000 per annum, in comparison to Dh.35,000 and Dh.55,000 stated in last index update in 2012. Single bedrooms are now available for Dh.55,000 to Dh.75,000 per annum, while double bedrooms are leased for Dh.90,000 to Dh.110,000 pa.

Dubai Marina saw 18 percent increase in rentals for double bedroom units starting from Dh.70,000 to Dh.130,000 per annum.

In Downtown Dubai, the cost of leasing double bedrooms range from Dh.110,000 to Dh.140,000 per annum, marking an increase of 16 percent, while single bedroom units on Palm Jumeirah are priced between Dh.75,000 and Dh.120,000 per annum and prices for single bedrooms in Discovery Gardens are Dh.35,000 to Dh.45,000 per annum.

The index serves as a guideline to landlords and tenants for rent pricing. Here's the RERA rent calculator for the year 2013.

Friday, March 15, 2013

Dubai property prices record second highest growth globally

Real estate prices in Dubai have grown to be second highest registering a 20 percent increase in 2012, a new global report said.

The Wealth Report 2013 reveals that Dubai stands out with a strong growth of 20 percent in prices of luxury villas in 2012. The emirate rebounded in 2012, on the back of resurgence in demand, said Knight Frank, a global real estate company.

This was further aided by lower prices, and strengthens Dubai’s position as a strategic hub, being able to attract wealth from Middle East, North Africa, the Indian Subcontinent and Central Asia, said the Knight Frank report.

Indonesia’s Jakarta topped the list of 80 global cities that were surveyed, with prices having grown by 38 percent. Dubai’s second position has been shared with Bali.

Miami, in the US took fourth place, with 19.5 percent increase, while Brazil’s Sao Paulo stood fifth (14% growth), Gstaad of Switzerland was sixth 13.2 percent, followed by Auckland (New Zealand) with 12.7 percent. Eighth position was shared by Guangzhou (China) and Los Angeles (the US), and Shanghai of China stood in the 10th position with 10.8 percent growth.

A Citibank report last year said that the recovery of Dubai property sector is in-line with the wider economic upturn and strong economic fundamentals of the emirate.

The bank emphasized that Dubai’s economic rebound and improved investor sentiment has breathed life into the property market during the recent months, with volume and value of real estate transactions in the emirate having grown since the beginning of the year.

According to global real estate consultant, Jones Lang LaSalle (JLL), real estate prices in Dubai will grow, but, at a slower pace, in comparison to last year. The prime villa segment has grown 20 percent, while apartments have shown 7 percent increase.

The prime luxury properties in Dubai are 10 times lower than Monaco, the world’s most expensive residential property market. The report said that prices of properties in Dubai falls in the range $520 to $580 per square feet during the last quarter of 2012, in comparison to the prices of $5350 and $5920 per square feet in Monaco, during the same period.

Among all the 20 cities surveyed, the report said that Dubai stood 19th in terms of prices of properties, while the last position for Cape Town, where prices ranged between $510 and $570 per square feet.

Thursday, March 07, 2013

Damac launches $1bn project in Downtown Dubai

Leading Dubai-based developer, Damac Properties, yesterday, launched $1bn hotel and branded serviced apartment project in Downtown Dubai. The master development Downtown Dubai has seen maximum project launches till date this year in Dubai.

The project, namely ‘Damac Towers’, is being developed together with Paramount Hotel & Resorts, the official licensee of Paramount.

The project, comprising four towers, will have each tower over 250 mts tall, comprising 540 room Paramount Hotel and Residences, and over 1400 serviced apartments in Damac Maison.

The announcement follows the launch of the two towers by the developer in Dubai, and Riyadh last month. The new project, now under construction, will be ready by end of 2015, the developer said.

The four towers will have a common multi-level plaza, which will offer a selection of themed food and beverage concepts, a screening room, wellness and fitness centres, kids club, swimming pools, retail and merchandise, all featuring the paramount brand or select partner brands.

While one tower will comprise the Paramount Hotel and Residences, the remaining three towers will have part of the Damac Maison.

Damac Towers by Paramount will showcase authentic California lifestyle, the glamour of Hollywood, and reassuring signatures of the Paramount brand. It will include Paramount movies library, paramount screening room, creative usage of transformational elements like media mapping and lighting effects throughout the public areas and digital signage.

The hotel with serviced residences will be managed by Paramount Hotels and Resorts, while remaining three towers will be managed by Damac Maison, the hospitality division of Damac Properties.

Luxury branded hotel apartments in Dubai are drawing prices in the range Dh.5000 per square feet, in comparison to ordinary unfurnished apartments in the same area, drawing Dh.3000 to Dh.3500 per square feet, the developer claimed.