Thursday, June 19, 2014

Dubai is safest in the world to invest in luxury properties: Damac

Dubai is one of the safest places in the world when investing in luxury real estate, given, its increased regulation and transparency, leading developer Damac Properties pointed out.

With growing interest in Dubai properties from African investors, Damac is launching a brief campaign across the region which highlights the investment opportunities in the emirate, with prices of luxury properties starting from $149,000.

As per the latest index by Knight Frank, Dubai recorded a strong growth last year, with rentals being 14 percent higher towards end of 2013, partly due to stringent investment regulation, which added to the perception of Dubai being a ‘safe-haven’ in the Middle East.

Dubai is also working towards creating a transparent process for buyers and tenants to increase their confidence in the market and make it easier for international clients to carry on business in the real estate sector in the emirate, said Niall McLoughlin, Senior VP, Damac.

Now there is increased investment from African buyers who seek to capitalise on the tax-free income and stable economy.

Based on latest rules in Dubai, developers should now provide four key documents to any buyer including the title deed of the project, details of Escrow account dedicated to the project, deal with main contractor and approvals from Dubai Land Department and RERA (Real Estate Regulatory Authority) to launch the project.

The Knight Frank report further said that prices for prime residential locations may rise by 15 percent this year, as they are still one-third below their previous peak. With Dubai’s announcement about World Expo 2020, prices will rise further, and tourism numbers would increase to 20 million over next six years.

The company also launched a dedicated website for investors who are interested in knowing more about Dubai, and the regulations and opportunities. The site also details latest trend in property market, apart from videos of most famous landmarks in Dubai.

Tuesday, June 17, 2014

New fee, regulations & restrictions to curb off-plan property sales

Dubai is planning to introduce new fee and restrictions to curb sale of off-plan properties, the International Monetary Fund (IMF) revealed.

As per the latest IMF report, Dubai will be imposing additional fee and restrictions on resale of off-plan properties, as that would further discourage speculative demand.

The report said that the increase in real estate registration fee from 2 to 4 percent last October, and introduction of regulatory measures to ensure orderly market conditions for new real estate development, has been a welcome step.

When looking at the past international experiences, often countries that faced property booms repeatedly raised real estate fee and differentiated them with criteria such as buyer’s residency, use of property for occupancy or investment, or time elapsed before resale, etc.

The measures that the Dubai Land Department (DLD) plans to adopt is not yet known, sources in the market say that the move will be to introduce slab-wise registration fee.

The plan is to introduce new fees/measures on a sliding scale, and that is what the market requires in case of speculative activity, said Craig Plumb, Head of Research, JLL, MENA.

Property prices are going up, mostly driven by speculators in off-plan projects. More regulations may be required to discourage speculators, he said.

The Chief Executive Officer of PropSquare Real Estate, Parvees Gafur said that the new fee would be good for the market in the long-term, but the market is no longer driven by speculators, and mostly involves the end-users.

Moreover, many major UAE developers like Emaar, Aldar and Nakheel are not allowing investors to sell a property unless they pay 40 to 60 percent of the property value.

The UAE Central Bank, early this month, said that low residential rental yields in Dubai and Abu Dhabi indicates the imbalances and overheating in the property sector, with both emirates showing current average rental yields of 70 and 130 basis points respectively below historical averages, which indicates imbalances and an overheating real estate market.

The UK-based research house, Global Property Guide, said that Dubai has topped the list of house price survey for the fifth consecutive quarter, with house prices rising 31.57 percent during the year to first quarter 2014 and 9.58 percent in first quarter alone.

Tuesday, June 10, 2014

Cancelled projects in Dubai officially listed

The Dubai Courts has placed a list of developers and their cancelled projects. This is the first time that Dubai’s Real Estate Regulatory Agency (RETA) is officially publishing the list of cancelled projects.

The court’s website lists 36 cancelled projects by eighteen developers.  Here’s the list of developers and cancelled projects:

Remah Holding Limited

  • Tower 88

High Rise Properties LLC

  • Dorna Tower
  • Orchid Residences
  • The Heights-Golden
  • Waves Business Tower
  • The Heights-Silver
  • Rotating Residence
  • Heigh Rise Boulevard1
  • Heigh Rise Boulevard2
  • Alternative Capital Invest Gmbh
  • Wings Of Arabia
  • Khyool Investment Llc
  • Abjar Tower
  • Faras 2

Makaseb Properties

  • Rufi Tower (Quattro)
  • Archery Tower
  • Rufi Lake View
  • Quattro West

Dheeraj & East Coast Llc

  • Cascade Manor

Merwess Abdulaziz

  • Azizi Feirouz I
  • Azizi Feirouz II
  • Azizi Feirouz III
  • Azizi Fountanne Tower

Bux Holdings Limited

  • Beti Ul Funoon

Cliff Dwellings Enterprises Ltd

  • Global Golf Residence

Parshwa Holdings Limited

  • Sapphire

Galadari Investment Office Limited

  • G-Office Tower

Escan Real Estate PJS

  • Escan Tower

ME Development Llc

  • Windsor Residence

IR Investments Holding Company Limited

  • Tonino Lamborghini-Elettra Residence

Orbit Holdings Ltd

  • Orbrit Holding

Al Zahra Properties

  • Eden 1
  • Eden 2
  • Sunset Gardens B
  • Sunset Gardens A
  • Sunrise 2

Hampstead & Mayfair Development Limited

  • Hampstead Residences

Zenith Real Estate Development Llc

  • Zenith Tower A3

Dubai Courts, on its website, states the committee will begin its first stage of agenda on the above-mentioned list of cancelled projects. The last date for submission of the manual or electronic applications by investors is 31st August 2014.

Investors can register manually by visiting Dubai Courts in the evenings from 2.30 pm to 7.30pm on the main building central services hall on the first floor or electronically by clicking on the name of the project and then filling in the data, the Court said.

Back in July 2013, Dubai issued Decree No.21, establishing a special legal committee for liquidation of cancelled real estate projects and settlement of rights and disputes pertaining to such projects.

Earlier, RERA officials had refused to release list of cancelled projects in Dubai, as the investors were personally notified about cancellations. Now, property experts have called for release of information on cancelled projects.

Further, RERA data reveals 187 projects have been since the beginning of 2009, with 253 projects on hold, and 232 projects to be completed soon.

Monday, June 02, 2014

Emaar to launch second phase of iconic BLVD Crescent Downtown Dubai

Leading real estate developer Emaar Properties has announced the launch of second phase of its new iconic BLVD Crescent in Downtown Dubai.

Featuring 38 storey and 20 storey towers on a podium in the Mohammed bin Rashid Boulevard podium, the carefully landscaped podium level of the development features interlinked waterways and pools of varying depths, lounge decks that offer intimate outdoor seating areas and zones, infinity pool that leads to the dynamic edge below.

With Downtown Dubai already being one of the most sought-after addresses in the world, the new vibrant destination is the place where they can work, live, play and shop. The second phase of BLVD Crescent makes a strong addition to this thriving community, said Ahmed Al Matrooshi, the Managing Director of Emaar.

The Chief Commercial Officer at Emaar, Arif Amiri said that BLVD Crescent Tower II follows the successful launch of its first tower in Dubai, Abu Dhabi, Almaty and Shanghai early this year, which once again reflects the growing real estate sector in the city.

The Crescent Tower II will be simultaneously launched in three cities – Dubai, Kuwait City and Abu Dhabi. Online registrations would begin on 4th June at Sales will be held from 9am on 7th June at Emaar Pavilion at Mohammed bin Rashid Boulevard in Dubai, the Emaar Sales Centre in Abu Dhabi’s Al Nahda Tower, The Regency in Kuwait City, Al Tawoon Street’s Al Bida’a, and Salmiyaat.

Long-term investors and end-users are being offered the opportunity to register for Emaar Preferred Access Programme. The investors who make at least 30 percent down payment of the total value of property and maintain ownership until handover is completed, will be offered preferred access and opportunity to own homes, subject to conditions, through this new customer-oriented initiative. Interested investors and end-users can skip the line and register for the programme even on the day of launch.

For more details on the second phase of BLVD Crescent, contact +97 14 3661688