Thursday, December 12, 2013

Registrations open for new Vida Residence units

Emaar's Vida Residence units are all set to offer stylish cosmo-lifestyle in the heart of Dubai.

Vida Residence, The Hills, which draws on the design approach of Emaar’s newly launched hotel brand, features 136 serviced apartments. The homes will appeal to new generation entrepreneurs and professionals, while the Vida hotels will offer personalized service to the residents.

The Hills offers all modern comforts and amenities to suit the personality of its residents, in its inspiring single, double and triple bedroom Vida Residence units.

The Vida Residence, The Hills, is located centrally in proximity to Emirates Living, a fully-established neighbourhood with easy access to Dubai Metro, Dubai Media City, and the Dubai Internet City. Apart from offering stunning views of theneighbouring golf course from their rooms, some of these units also open to views of Dubai Marina, which forms a glittering skyline towards evening.

Dubai, being the ‘go-to’ city for a vast youthful demography, Vida Residence, The Hills is designed to serve as new lifestyle destination for the discerning youth and families, said Ahmad al Matrooshi, Managing Director of Emaar.

Residents at this new development can also access to amenities in the adjoining Vida Hotel, restaurant and business amenities, outdoor deck featuring barbecue station and yoga lawn, all in The Hills, a complex comprising low-rise apartments and one of Emaar’s latest projects.

Vida Residence, The Hills are located in two 12 to 15 storey buildings, featuring contemporary finishes, design and chic colour scheme units, with advanced telecom and entertainment features, 24-hour concierge and maintenance support.

All potential investors can register for units online at www.emaar.com from 11th December 2013. The sale for units will be held on 14th December at Emaar Sales Centre, Emaar Square, Downtown Dubai, and also at the Sales Centre in Al Nahda tower in Abu Dhabi. 

Tuesday, December 10, 2013

Residential prices in Dubai topmost in the world, once again

The price of housing in Dubai has once again reached topmost in the world, hitting 28.5 percent growth over the past 12-month period ended 30th September 2013, said the latest report from property research firm, Knight Frank.

Knight Frank’s Global House Price Index tracks mainstream residential prices in 53 countries, apart from Dubai and Hong Kong.

The report says that the average global house prices touched the new peak, mostly in the recent quarter, and has surpassed the previous peak recorded during second quarter of the year 2008, following which, there was a worldwide decline in real estate prices.

Five years thereafter, the prices have once again scaled to new heights, with Dubai’s meteoric rise of 28.5 percent year-on-year, followed by China’s 21.6 percent, and 16.1 percent by Hong Kong.
The strong performance of the index is not only due to surging prices in Dubai, China and Hong Kong but also in other emerging markets, said Kate Everett-Allen, the author of the Knight Frank report.

The Index showed that housing prices in Dubai have surged by 11.8percent over the past six months, and by 4.5 percent in the previous three months. In the preceding quarter too, Dubai saw a record growth rise when house prices grew by 21.7 percent year-on-year, which is also the topmost in the world.

Dubai has been followed by Hong Kong at 19.1 percent, Taiwan at 15.4 percent, Indonesia at 13.5 percent, Turkey at 12.5 percent and Brazil at 11.5 percent.

Last year, the house prices in Dubai had grown by just 2 percent according to Knight Frank Global Housing Price Index, and the emirate was ranked at No.23 in the world in terms of rising house prices. In fact, the emirate was the worst-performing market when surveyed in Q3 2009, with average housing prices having fallen 47 percent year-on-year, landing the emirate at the bottom of Global House Price Index.

Dubai’s surge to topmost position in this year’s report indicates that investors have once again returned to choose Dubai as their favourite property market in the region, and in the world.

According to analysts, the emirate winning the rights to host World Expo 2020 will see a new growth chapter for Dubai and the UAE economy and real estate prices may see a growth in near future.

As per reports by Standard Chartered Bank in September, the real estate price escalations this time are based on better fundamentals, with several factors including subdued mortgage growth, low off-plan sales and improved housing regulation having differentiated this price rally from the one in 2008.

Thursday, December 05, 2013

UAE continues to adhere to 85% home finance rule

Although, there is no clue on when the new mortgage rules will get effective, home buyers can still borrow up to 85percent of the property value in the UAE at present, say Bankers.

The bankers said that although implementation of new guidelines by Central Bank was likely to get effective from 1st December, no confirmation on the same has been available, and hence, it is not known when the new rule will get effective and that as of now, they are lending at the previous loan-to-value (LTV) ratio.
The UAE Central Bank had issued new mortgage lending regulation in October, which permits banks to offer loans of up to 80 percent of the value of the property to nationals, and 75 percent to expatriates.

If UAE nationals seek loans for a second house / investment property, the loan eligibility may not exceed 65 percent of the value of the property, while expatriates purchasing second house will be eligible for a mortgage up to maximum of 60 percent of property value.

The maximum LTV for mortgage on property is set at 50 percent when buying off-plan, irrespective of purpose, or category of the purchaser. The new rule does not permit home buyers from using personal loans or credit cards to meet their down payment requirements.

Last month, the UAE Central Bank Governor, Sultan Nasser al Suwaidi said that the new limits on mortgage loans would help the banking sector.

The UAE Central Bank’s Financial Stability Review in September 2012 indicated the direct residential mortgage exposure by banks at Dh.37bn for nationals and Dh.37.6bn for expatriates as of 2011. The total constitutes less than 7 percent of the net loans and advances at the time in the UAE banks.

A report on the impact of the new mortgage regulation by Standard & Poor Rating Services, said that although such exposure is likely to have grown since then, in line with increased volume of property transactions in 2012 and 2013, residential mortgages constitute less than 10 percent of UAE banks’ lending books. The direct impact from the regulation on aggregate lending may be rather limited, he said.

Monday, December 02, 2013

Dubai property prices surge following successful Expo 2020 bid

Real estate prices in Dubai are likely to shoot up soon, but, the real estate sector as a whole will witness a stable and sustainable growth in the long-term, say experts.

Leading global real estate consultancy, Jones Lang LaSalle said that the direct impact of Expo 2020 will depend on investor sentiment, leading to increased asking price for plots and ready villas / apartments for developments near the Expo site and Jebel Ali area.

The Chief Executive Officer of PropSquare Real Estate, Parvees Gafur, said that there could be an instant hike in prices and with gradual increase on actual demand. The TIER 2 communities would be most benefitted, with majority of them being on the corridors of the main Expo venue.

Meanwhile, rents are unlikely to increase immediately, as the real consumer takes time to enter markets based on their mobilisation of businesses, and proper rent controls set by Dubai’s RERA on existing properties too.

On the development front, JLL is of the opinion that supply levels in the corridor to the south of Dubai are likely to increase due to successful Expo bid. Several developers have major land holdings around Dubai World Central and plan to develop these following the improved sentiment after the successful World Expo dicision, said Alan Robertson, CEO of JLL, MENA.

Another leading real estate consultancy, Cluttons, said that the market will see a more stable and sustainable growth. The much talked about ‘Expo boost’ has already hit the property market to an extent. There has been a surge in property prices, and a trend of more stable and sustainable growth is likely to continue in the short term, said Steve Morgan, Head of Cluttons, Middle East.

The fast-tracking of projects meant to complement the 2020 vision of the city of hosting 25million tourists is inevitable and this involves resumption of work in Dubai’s stalled schemes.

Cluttons believe that majority of investment in the short-term will go towards delivery of the Expo site, accelerating transport infrastructure, leisure, retail and hospitality.

The CEO of Dubai Properties Group, Khaled Al Malek, said that there has been a strong demand across variety of sectors including tourism, retail and hospitality, and hotels and malls, apart from residential, commercial and logistics projects that cater to growing number of visitors.