Thursday, July 25, 2013

JBR to release 300 new housing units towards the year-end

Nearly 300 new residential apartments will be released in the Jumeirah Beach Residence (JBR) of Dubai by fourth quarter of 2013.

Launched into the market in June, targeting VIPs and internal investors, the 50-storey residential tower of Al Bateen Residences comprises 304 apartments, with the 24-storey hotel tower comprising 110 rooms.

The Director – Agency Services at Asteco Property Management, Sean McCauley, and Colliers, the lead dual exclusive agents, said that the starting prices at this twin tower project, developed by Al Ain Properties, were Dh.16,146 per square feet, with an entry unit price of more than Dh.2mn.

The prices of apartments have surged since the beginning of the year. The second quarter report by Asteco reveals that the average sales price in JBR is Dh.13,450 per metre, marking a nine percent increase from the first quarter and 32 percent year-on-year growth. Therefore, the new apartments are priced at almost 20 percent higher than the existing stock.

Among the other new projects coming up in the JBR area are The Beach stretching 5000sqm, boutique mall with more than 40 food and beverage outlets, retail shops and entertainment opportunities to be completed by end of next year.

Meanwhile, the Dubai Properties Group has announced commencement of work on JBR beach club by year-end, and the Dh.6bn Bluewaters Island project – a retail, hospitality and entertainment opportunity is also underway.

However, the ongoing construction work in the area has been causing lot of traffic woes, which has dampened its popularity among buyers. The community witnessed a decline in its ranking by three places, touching the 10th position from the seventh position, it held during first quarter of 2013.

These findings were based on extensive analysis of data from more than 120mn property searches which involved about 1.8mn visitors. 

Friday, July 19, 2013

Residential rents easing out in prime locations in Dubai

Residential rental prices in Dubai, particularly in prime locations are showing signs of easing, despite the landlords demanding more money this year. This trend has largely been attributed to the upbeat construction sector and the budget-conscious tenants.

Dubai rentals have gone up due to renewed confidence in the economy and the real estate sector. The cost of leasing an apartment and villa has increased by 3 percent and 4 percent respectively during the first quarter of this year, and the rents for apartments have gone up by 12 percent when compared year-on-year.

However, leading real estate consultancy, Jones Lang LaSalle (JLL) said that rents are now growing at a slower pace, largely due to tenants’ migration to cheaper locations, coupled with fresh supply of villas and apartments.

Primary areas in particular, are now showing slower paces of growth, and areas such as Downtown, Business Bay, Burj Khalifa and Dubai Marina, are seeing housing units get more expensive in prime locations.

The growth in prices and rentals may be easing due to high levels of future supply, tenants relocating to cheaper locations, limited debt availability and due to more mature market regulations, said Alan Robertson, CEO of JLL Middle East and North Africa.

There are more villas and apartments to be occupied this year. About 3000 housing units were added to Dubai’s residential stock during second quarter of this year, and if completed as scheduled, about 38,000 more are likely to enter the market between 2013 and 2015, says the JLL report.

An Asteco report in April noted that rents jumped considerably in International City, where a double bedroom unit recorded 8percent increase, while in most other areas, there has been an increase of only about 3 percent. Increased demand for budget accommodation contributed to upward movement of rents in affordable and secondary areas, said the JLL report.

Tuesday, July 16, 2013

Dubai International City gets costlier

The International City, which was considered to be an affordable community in Dubai, until last year, is now seeing increased demand with property transactions almost doubling during the first six months of 2013, in comparison to same period last year.

The data shared by Reidin.com revealed that 1272 apartments were sold during the first six months of this year, against 870 units sold during the same period last year, marking an increase of 46 percent.

The average prices grew by 27 percent, touching Dh.499 per square feet, in comparison to Dh.392 per square feet. These figures provided by Reidin.com are officially registered with Dubai Land Department.
At present, listed prices of studios are the in range of Dh.270,000 to Dh.370,000, wherein single bedrooms are being sold for Dh.380,000 to Dh.500,000. The launch prices for studios and single bedroom apartments were in the range Dh.220,000 and Dh.320,000 respectively.  

The National Bank of Abu Dhabi, in June, said that Dubai’s International City, recorded the highest increase in real estate prices, wherein the prices grew by 62.4 percent. The average residential prices in June grew by 1.5 percent, while the annual increase was 34.6 percent. The average prices currently stand at Dh.1099 per square feet.

Spread over an area of 800 hectares, International City constitutes about 485 buildings, including residential districts of Central Business District, Greece, Persia, Morocco, Spain, England, France, Italy, Russia, China and Emirates.

Monday, July 15, 2013

Hydra Village phase one construction complete

Abu Dhabi-based developer Hydra Properties, completed phase one of construction of Hydra Village, a major new residential development, located outside Abu Dhabi, and has begun handover of 448 properties.

The Hydra Village, located in Al Shahama Abu Dhabi, will grow to be the ‘new Abu Dhabi’ in-line with plan 2030. When the entire project is complete, it will house more than 10,000 residents.

The Chief Executive Officer of Hydra Properties, Ali Saeed bin Sulayem, said that each home is built to best levels of quality that customers expect, and the development is situated in a vibrant, family-friendly community.

There have been several challenges ever-since the launch of the project, owing to global economic crisis, which impacted real estate developers.

The completion of Phase one at Hydra Village is the first among several milestones, achieved by the capital, as it shapes up to become a comfortable residential community, he added.

Located within easy reach of Yas Island, Al Raha and future Capital District, the apt location of Hydra village enables easier access to Dubai and its capital, with ease of access and communication. The development is also in proximityto Delma Mall, Mussafah and Deerfield Town Square Mall.

The community development will offer residents shops, indoor and outdoor gyms, swimming pools, children play areas and landscaped areas, due to open over the next few months.

Currently, the company is focusing on other zones at Hydra Village, and on the Hydra Avenue development on Reem Island. On successful completion, these projects will surely support consumer confidence in the recovery of Abu Dhabi market, said Mohamad Al-Habech, Chief Commercial Officer at Hydra.
Zone 8 of Hydra Village is now 50% complete and Zone 6 is nearly 30 percent complete, he revealed.

Monday, July 08, 2013

Dubai Holding confirm plan to review Tiger Woods project

A global investment holding company, Dubai Holding, is once again planning to review Tiger Woods Dubai, after suspending the project in 2011. The multi-million dollar golf and property development project was put on the back burner in the year 2011, due to difficult market conditions.

The project was a partnership between Tatweer, part of Dubai Properties Group, the real estate arm of Dubai Holding, and Tiger Woods Design.

The project spanning 55mn square feet was likely to include 287 luxury villas and mansions, a boutique hotel and clubhouse, a 7800 yard course par 72 design. The villas were priced in the range Dh.44million and Dh.84mn during the launch phase.

Close on the heels of property market recovery, the developers in Dubai launched new golf communities.

A joint venture between Meraas Holding, a Dubai-based development company and Emaar Properties, the largest developer in Dubai, led to the development of Dubai Hills Estate, a master-planned community in the first phase of the mega Mohammed Bin Rashid Cit development, a premium lifestyle community, which would be home to several neighbourhoods established around an 18-hole championship golf course.

Early in May this year, Damac a private developer, tied up with the Trump organization to develop Trump International Golf Club, an 18-hole PGA Championship Golf Course in Dubailand.

With the revival of the property market, Dubai Holding has already confirmed its plan to revive The Lagoons project, worth Dh.64bn on Dubai Creek through a joint venture. 

Thursday, July 04, 2013

Nakheel establishes new hospitality division

Nakheel, the leading Dubai-based real estate company, has established a new division Nakheel Hospitality and Leisure to focus on the increasing number of hotels, beach clubs and community recreation centres.

Headed by Managing Director, Thorsten Ries, the division is responsible for monitoring development and operation of hotels and clubs, รก key element of company’s business strategy.

As part of further expansion, Nakheel is building a 240-room hotel at Dragon Mart, a five-star, 40-storey hotel forming part of Nakheel Mall and Hotel complex on Palm Jumeirah and an economy hotel at Ibn Battuta Mall. More hotels by Nakheel are in pipeline. The developer also owns and operates several recreation and leisure clubs such as the Jebel Ali club, Jumeirah Islands club and the Shoreline Beach Clubs on Palm Jumeirah.

The newly appointed German-born Thorsten has an extensive hoteliers’ background with more than 20 years of rich experience in the industry. He has worked in Asia, Europe and the Middle East, and began his career with Kempinski before moving to Marriott, Four Seasons and Ritz Carlton among others.