Dubai Real Estate News
UAE Property Market Trends and Reviews

Despite the 53 percent higher Gross Domestic Product (GDP) per capita in Abu Dhabi, the average residential property prices are almost ten percent cheaper, says new research.

The HSBC Global Research in its report mentioned that "if we take Dubai as a proxy and follow the regression trend, the current GDP per capita level, the pricing of the houses in Abu Dhabi stands at Dh.14,808 ($4,035) per Square meter, rather than Dh.11,230 ($3,060) says the new HSBC Global Research report."

Residential prices in Dubai and Abu Dhabi stand at Dh.12,371 and Dh.11,230 per square meter, respectively.

In case Abu Dhabi readily opens up the property sector to the same level as Dubai, the residential property prices are likely to shoot up, says the report.

Buyers from foreign countries are permitted to purchase 99 year leases, while the investment in properties is limited to specific areas in the capital.

According to HSBC, the market rigidities and the regulations are actually curbing the potential demand, and hence the prices.

Despite the population being highly skewed towards expatriates, the foreign property ownership is comparatively restricted. There is less incentive for the expatriates to win the residency status and the settlement is impractical.

Just as in other cities, foreign workers are not eligible for permanent residency or for citizenship. The report states that "Limited accessibility to mortgage lending, coupled with high mortgage rates that are as high as seven to eight percent, are actually blocking price appreciation." Moreover, the mortgage penetration rates are the lowest in the UAE. Penetration in Abu Dhabi is even lower as more than ninety five percent of home financing takes place in Dubai.

Due to such low penetration rates, growth rates are high, and the mortgage lending in the UAE is growing by almost eighty percent during 2006.

Labels: Abu Dhabi, Mortgages, Property Prices, Real Estate News

The Engineering and Contracting Company (ECC) has been appointed as the main contractor for the Smart Heights project at TECOM by Damac Properties.

The project is due for completion by end of 2008.

Smart Heights is the second project of Damac in TECOM, the first being 'Executive Heights', an office tower.

Smart Heights offers an office space of 288,000 square feet with 22,000 square feet of retail outlets and six levels parking. Among the other amenities are the day care center and health care.

International Foundation Group was the enabling works contractor.

Labels: Damac Properties, New Contracts, Real Estate Company

Dubai International Real Estate, a company managed by Sheikh Hamdan bin Rashid Al Maktoum, Minister of Finance and Deputy Ruler of Dubai, plans to invest Dh.18.35bn in various projects in the UAE, says a senior executive.

The Manager of the Company, Mohamed Al Sayegh, said "We plan to invest upto $5bn in all types of real estate projects in the UAE, like residential, commercial or mixed use within the next three to four years."

He, however, declined to reveal the total value of the company's project. "We have developed a number of projects in the UAE, but the total value cannot be disclosed," says Al Sayegh.

He was speaking on the occasion of the launch of Dh.750million HHHR Tower with seventy storeys, financed and developed by Dubai International Real Estate. The tower will be built by Al Ahmadiah Trading and Contracting, formed in a joint venture with Hip Hing Overseas, based in Hong Kong.

The tower, located on Sheikh Zayed Road, comprises residential, commercial and office complexes and is currently in its construction stage, and is now designed to accommodate offices, showrooms and 454 luxury apartments.

On completion of the HHHR Tower, the first project after the joint venture, due to be completed by May 2009, Al Ahmadiah Hip Hing will explore various other projects across the Middle East, including Sharjah, Ajman and Abu Dhabi, said the CEO, SK Joshi.

The total project value of the company to date is Dh.2bn.

Labels: Dubai Real Estate, Latest News, New Developments

Memon Investments, the Dubai-based property developer, has launched Champions Tower III in Dubai Sports City, thereby taking the UAE portfolio of the company to the Dh.500 million mark.

The residential tower comprises sixteen storeys and is being constructed at a cost of Dh.145million and is due for delivery during early 2009. Construction will begin in August this year, says the company official.

The Champions Tower III follows the Champions Towers I and II, both of which were launched in Dubai Sports City and have been sold out.

The total value of the three Champions Tower projects including the Dh.80 million Cambridge Business Centre by Memon, located at the Dubai Silicon Oasis, are approximately Dh.500 million, which is a part of the Dh.1 billion investment plan of the company.

Labels: Dubai Sports City, New Developments, Real Estate Company, Real Estate News

The Dubai-based real estate developer, Dubai oasis, has announced that it is ready to invest upto Dh.1billion for developing four serviced apartment projects in Dubai Sports City.

The first being, the Oasis Tower-1, a part of residential and serviced apartment, is kept on sale a few months ago. The company statement reveals that it is almost hundred percent sold out.

The company said that the construction of the Oasis Tower-1 has already begun and is expected to hand over the project on schedule during fourth quarter of 2008. The second planned project in DSC was launched during first week of June, and will be a specially serviced apartment development. The company is also in the process of acquiring two other serviced apartment projects, due to be launched next year.

The Vice-President for Marketing and Sales, Hamid Ashtarani, said the ideal location of Oasis Tower-1 on the ridge of arterial water channel and the large man-made lake was one of its strongest selling propositions.

The Oasis Tower-1 comprises eighteen storeys with 232 units containing various facilities that include a rooftop gymnasium, swimming pool, commercial and food and beverage amenities.

He said "The foundation works are being carried out and full-scale construction is likely to commence within a couple of months. We intend to complete the project on schedule."

Labels: Dubai Sports City, New Developments, Real Estate Company, Real Estate Projects

A Hollywood-based theme park featuring rides on blockbusters from Paramount Pictures like Mission Impossible, Lara Croft and Titanic is likely to be built in UAE.

The list of box-office hits of the legendary California-based box-office hits, also include 'War of the Worlds', 'The Godfather', and the 'Star Trek films.'

The emirate in which this state-of-the-art, Dh.9billion development will be located is yet to be revealed. But it is likely to provide a blend of Bollywood, Hollywood and Arabian films, says the developer Ruwaad Holdings.

Paramount has entered into a deal that permits the Dubai-based firm to make use of its movies and characters as the basis for the simulators, park's rides, shows, and events.

The Chief Executive of Ruwaad Group, Hayan Merchant says "The Paramount Park in the UAE will be the main focus of a family-oriented development which is expected to include shopping centers, lifestyle properties, boutique hotels and resorts."

The project will be entirely funded by Ruwaad and Paramount is not investing in the development, though it will help in planning and designing of the park.

He said that this will boost the inbound tourism and the economic growth of the country and more details regarding the project will be revealed towards the end of the year.

In the meanwhile, both Paramount and Ruwaad are considering other development opportunities in the Middle East and around the World. The Ruwaad Destinations CEO, Darrel Metzger said "We are also looking at other regions, as this project calls for destinations in places such as Malaysia, India, South Africa and the Middle East."

Ruwaad is a wholly owned subsidiary of the Dubai nine group, which operates in twelve countries and four continents.

Also, on the other hand, plans are on, to build another Dh.2.9bn Universal Studios theme park in UAE, based on Hollywood films featuring 'Jurassic Park' and 'King Kong' have been planned in the Dubailand.

Labels: New Developments, Real Estate Company, Real Estate Projects

There is a shortage of 26,000 housing units, in comparison to the expected delivery of 40,000 units during 2006. This has resulted in rise in rents during the first quarter of this year, according to results of a new research.

Due to delays in key projects, only about 14,000 units were delivered in Dubai. This demand-supply gap resulted in rising rents, as the rentals for two bedroom apartments rose to eighteen percent during the first quarter of 2007, in comparison to the same period last year, says Asteco, a property management company. The rents for single, and three bedroom apartments rose by fourteen and thirteen percent respectively.

However, Asteco, in its report, mentioned that as the increase in rent rates were mainly due to the shortage of completed residential units, a large number of developments are expect to hit the market by end of this year and thereafter the rents are expected to stabilize.

The government had also recently stated that the house items and housing rents had risen by fifteen percent in the UAE, with inflation touching 9.3 percent during 2006. The average annual rents for single, double and three bedroom apartments were Dh.80,000, Dh.115,000, and Dh.140,000 respectively during the first quarter.

Dubai Marina recorded highest rentals of Dh.110,000 to Dh.210,000 on average and rents increased by 20 percent during fourth quarter.

Villa rentals increased by fourteen to fifteen percent in Umm Suqeim quarteron-quarter and Garhoud. The rentals in Old Dubai were highest in Jumeirah 1, and ranged from Dh.270,000 to Dh.500,000. However, the villas are said to be scarce in supply than the apartments.

Asteco report states that the steep increase in Dubai rents has resulted in increase in demand of residential accommodation in nearby emirates such as Fujairah, Ajman and Sharjah.

Labels: Construction Projects, Latest News, Rentals, Residential

According to a top UAE law firm, the regulations currently drafted by the Abu Dhabi Land Department, clarifies the rules and procedures in the booming real estate sector in the emirate.

Several laws have been issued since the year 2005, which deal with property registration and ownership for the UAE and GCC nationals, and foreigners in Abu Dhabi.

Mohammad Kamal, Property Lawyer, at the Dubai-based Al Tamimi and Company, however, says that these were just "skeleton frameworks" which heavily depended on added regulations, termed as implementation regulations, to fill in grey areas.

Recent discussions between the Abu Dhabi Land Department and Al Tamimi, revealed that implementation regulation regarding Law No.3, concerning registration procedures for land in the name of UAE nationals have been already drafted and sent to the Executive Council of the emirate for approval.

Meanwhile similar regulations for Law No.19 were issued during 2005, to define the ownership rights of UAE, GCC and foreign nationals. This is in draft stage.

Kamal said that the continued activity and interest in the Abu Dhabi property market will serve as a catalyst to speed up the process of implementation of regulations, which would ultimately clarify legal issues that arise, particularly for GCC and foreign nationals.

As per Law No.19, UAE nationals have the right to own property anywhere in Abu Dhabi, but the ownership for GCC nationals is restricted only to certain designated investment zones.

The law permits GCC and foreign nationals the right to own apartment units or entire floors in investment zones, but foreign nationals are allowed to only own the surface rights, not the underlying land on which the building is located.

For owning land outside the investment zone, non UAE-nationals will have to obtain special allowance from Abu Dhabi Executive Council.

Kamal said that the Land Department will be adding Lulu Island, Saadiyat Island and the High Corporation for Specialized Economic Zones to a list of investment zones which also includes the Al Raha beach and the Al Reem Island.

Labels: Abu Dhabi, Property Law

The Managing Director of Sheffield Real Estate, Abuali Malik Shroff, says he plans to invest more than Dh.5bn in the Dubai property market towards 2009, banking on the expected boom of the tourism sector in the emirate.

Shroff says "We are looking towards en-cashing the potential of the tourism sector in the near future, so that our investors could be benefited."

Sheffield is confident about a return of 8.33 percent every year to its investors, for the initial three years in its Dh.1.4 billion Marina 101 project, expected to be complete during the first quarter of 2010.

"We will manage the property on behalf of our investors, promising them of a 25 percent return over a period of three years on their investment. An investor can be certain to get back his money in a span of five to six years," he says.

"We are looking at short-term rentals, as tourists from Kuwait, Qatar, Bahrain, and Saudi Arabia could seek accommodation for fifteen days to one month. These people would prefer to stay in furnished apartments, where they are provided with facilities of a five star hotel at reasonable costs."

According to Department of Tourism and Commerce Marketing (DTCM) statistics, the number of hotel guests in Dubai almost touched 6.3million during 2006, in comparison to 6.1 million during 2005. The number is expected to rise further as Dubai is now focusing on becoming a regional education and financial center.

As of now, Sheffield has a land bank of 500,000 million Sq. Ft., valued at more than Dh.1billion. The company recently launched the Corporate Tower, its first commercial project, in the Jumeirah Lake Towers community of Dubai worth more than Dh.300m.

Shroff said "Commercial properties have always stood out as a stable investment all over the world. We are witnessing a continuous surge in demand in this segment in Dubai, and our project is equipped to offer better returns to our investors."

Corporate Tower is the seventh project of Sheffiled in Dubai. The company is also in the process of making investment plans in various other residential projects, and plans to invest Dh.700m for construction of a gold and diamond retail mall in Dubailand.

Labels: Commercial Property, Dubai Real Estate, Real Estate Company

Real Estate developers have requested the banks to leave the task of real estate development to them, and to focus on playing the role of a facilitator, rather than a rival.

A study covering the UAE real estate market during the past five years revealed that investment firms and banks have began competing with development companies.

The study by the Al Tharaa Investment Group states that once the banks become the competitors of the developers, they create very difficult conditions on developers who actually desire to seek the services of banks. The study says that permitting the banks to enter into real estate market is an "injustice" towards developers that might cause huge losses to a large number of developers. This could also result in a fall in growth of the real estate sector.

Without finance from banks for developers, and the property investors, the boom in property market that has been witnessed by UAE would have been impossible. The study pointed out that the bank is the most cherished partner for the developers.

However, the Banks view the realty sector to be the most flourishing one, and they have been allowed a certain percentage of investment in the real estate.

The CEO of the Dubai Real Estate Company, Obaid Al Salami, is of the opinion that the firms working in the real estate development should not involve themselves in financing, and hence the banks should leave the real estate development towards those specialized in it.

The Executive Director of New Dubai Real Estate Company, Ahmed Ali Al Abdullah said "The role of banks in the society and in the economy is a much bigger one than the real estate projects," but he however added that, it is good for banks to enter the property sector in a manner that does not harm the real estate companies.

Economist Ahmed Al Samarraie has said that the competition is open as long as it is in a transparent framework, involving economic freedom and equality.

Sultan Thani, the Director General of Dubai Land and Property department said that they do not intend to stop the banks from involving in the real estate sector.

Labels: Dubai Real Estate, Latest News, Mortgages

The Abu Dhabi based Al Yasat Holdings, a part of the Al Mazroui group, plans to develop a healthcare city on Shams Abu Dhabi, worth Dh.3.5 billion.

The project intends to bring together wellness and clinical services.

The Chief Executive Officer, Mukaram Ulla Khan said "We are carrying on talks with a German Consortium for launching a healthcare city on Shams Abu Dhabi. We plan to announce the project during the first half of next year."

Khan said the company will construct a residential tower worth Dh.360m in Shams Abu Dhabi.

He also said that the design of the tower is in its final stages, and that the company will be emphasizing on an eco-friendly structure.

Shams Abu Dhabi is being developed at the Reem Island by Sourouh Real Estate, and covers about 25 percent of the island, and occupies 1.32 Sq. mts., ninety percent of which will be marked for residential buildings.

The entrance will have the distinct Gate District, constituting eight buildings. It will also comprise one of the largest parks in the UAE, which covers about a million square meters.

Shams Abu Dhabi will be developed in various phases, the first of which is likely to be completed by 2009, and the entire project will be complete by 2011.

Al Yasat has another two developments in pipeline, one each in Abu Dhabi and Dubai. "We will build a mixed-use tower at the Business Bay in Dubai and launch another residential tower at Abu Dhabi during initial part of next year," says Khan.

Al Yasat has already invested about Dh.1bn in the Dubai and Abu Dhabi property sector, including the recent launch of Dh.550m commercial project, The One Tower.

Khan mentioned "Abu Dhabi is facing a shortage of residential units, and hence we decided to launch residential projects there. We expect property prices to rise by twenty to twenty five percent each year. We plan to finance the project ourselves."

Labels: Abu Dhabi, New Developments

The Dubai-based Damac Properties has launched the 'Damac Heights', their first branded project in Dubai, worth Dh.2.5billion.

Damac Heights, is located at Dubai Marina, and is a ninety storey tower, comprising three, two and single bedroom apartments up to the sixtieth floor. The next twenty five levels have been dedicated to penthouses and duplexes.

The Chairman of Damac Holding, Hussain Sajwani said "We have got the land and are planning to start the works soon. We expect the tower to be complete by 2011."

The tower, designed by the Aedas Architects, offers facilities such as gymnasium, swimming pools, steam and sauna amenities, health clubs for men and women, daycare centers and nurseries, golf simulator, games rooms, banquet area and barbecue area.

Every property of Damac Heights that is purchased, or for purchase of any other Damac Property, worth Dh.350,000 during DSS 2007, the buyer will be offered a chance to enter a draw, wherein one luxury car will be raffled. The draws are likely to be held every second week starting 5th of July at the Mall of the Emirates.

Labels: Damac Properties, New Developments, Real Estate Projects

The first phase of the Dh.400 million initiative at the Dubai Silicon Oasis, the 'Saphire Residence', was launched by Deyaar yesterday.

Saphire Residence serves the rising demand for new affordable residential offerings in Dubai. It offers ninety one, two and three bedroom apartments.

The Deyaar Chief Executive Officer, Zack Shahin said "The project will enjoy an integrated community setting in an area that is likely to experience considerable growth in the near future."

Saphire Residence, comprising eight storey, scheduled for completion in 2008, will be the first, among four other buildings, that Deyaar plans to launch in Dubai Silicon Oasis. The Oasis is a 7.2 Sq. mt., master-planned community at the Emirates Road.

The Dubai Islamic Bank will offer their finance scheme, wherein no due will be required to be paid before the end of the construction. The launch is closely followed by the sale of a number of residential and commercial projects of Deyaar at the Business Bay.

The net profit of Deyaar has risen from Dh.5m during 2003 to Dh. 73m in 2004, Dh.141m in 2005 and Dh.412m in 2006. Deyaar's recent share sale was also several times oversubscribed.

Labels: Deyaar, Dubai Silicon Oasis, New Developments, Real Estate Projects

The Dubai International Finance Center (DIFC) Authority, after their sixty days consultation period, has passed the Property Ownership Laws, according to reports, yesterday.

The DIFC LAW Number Four of 2007 (Real Property Law) and (DIFC Law Number Five of 2007) Strata Title, as well as regulations that complement the laws have been endorsed by The Vice President and Prime Minister of UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum. The laws and regulations will take immediate effect.

The Law guarantees the ownership of freehold buildings and lands, and other interests in land within the DIFC.

The Law, though basically follows the English common law, also incorporates the Torrens system of land registration, which is popular in Australia, Canada, New Zealand, and Singapore.

As per this law, the land transactions can be registered in a central register, administered by the DIFC. The title interests that are already registered in the DIFC are "indefeasible."

Individuals opting to purchase property in the DIFC, or planning to lease or rent, or lend on the security of real estate in the DIFC, can rest assured that their investment is safe and is fully supported by the protection of the law.

The Strata Title Law establishes a system of guaranteed freehold title for units in buildings within the DIFC.

The law provides a combination of the benefits of guaranteed titles, clubbed with an administrative structure that has been designed to take care of day to day management of the buildings.

The DIFC says, it will help in overcoming the complexities of co-owners association constitutions, master community declarations, etc., through introduction of simple, but comprehensive system of rights and responsibilities.

The law, inline with the DIFC's mission as an International Finance Center, also provides an internationally proven system for registering real property ownership.

Labels: Dubai Real Estate, Freehold Property, Property Law, Real Estate News

Shaikh Holdings, which is a real estate development and investment company, has announced its intention to invest Dh.4.41 billion ($1.2 billion) in the next five years in major waterfront and golf communities in the UAE.

A community with ninety six villas on Earth golf course in the Jumeirah Golf Estates, Dubai, is likely to be the first among the developments of Shaikh Holdings. These landscaped villas are expected to be put on sale next month.

Shaikh Holdings has actually diversified its interest from core trading into expansion of real estate developments in regional and international markets.

The company's portfolio comprises commercial, residential and hospitality real estate, and has been a leading institutional investor in the Dubai property market since the year 2002.

The Shaikh Holding's primary investments in Dubai include Business Bay, The Palm Islands, Emirates Hills, Jumeirah Golf Estates and Dubai Waterfront.

The Chairman of Shaikh Holdings, Kaiser Shaikh, said "We have been making considerable investments in the projects of Dubai government's developers since the year 2002."

Labels: Jumeirah Golf Estates, Real Estate Company, Real Estate News

The Dubai Real Estate Corporation has been established as a public commercial institution, affiliated to the Dubai Executive Council, according to a decree issued by the Vice President and Prime Minister of UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum.

Ahmen bin Byat is likely to be appointed as the Chairman and Dr.Omar Mohammed Ahmed bin Sulaiman is expected to be the Deputy Chairman. A CEO will be appointed later.

The new body is expected to own and manage all registered properties that come under the Dubai Government's name. It will invest, build and utilize the industrial and commercial lands in the emirate. It is also expected to provide building, marketing, rental, commercial and real estate management services with required infrastructure.

The corporation is also given the freedom to enter into deals with companies, persons and institutions that it considers appropriate within its areas of jurisdiction. It can also team up with other concerned authorities so as to contribute to any kind of civil planning.

Sheikh Mohammed has also issued a decree to set up a board for the Dubai Real Estate Corporation. The board is entitled to manage the corporation and will be kept in-charge of the general supervision of its financial, administrative and technical affairs. The board has the right to appoint auditors and determine their remunerations.

The council has the privilege of appointing the Chief Executive of the Corporation to carry on a number of responsibilities and to make decisions that he deems appropriate to achieve the objectives of the corporation, including general supervision, implementing the strategic policies, making suggestions on new projects and investing the funds of the corporation. The Chief Executive also makes necessary suggestions on the organizational front, and governs the work of the corporation.

Labels: Dubai Real Estate, Property Law, Real Estate News

Fujairah, in an initiative to emulate Dubai, plans to pass laws that permits foreigners to purchase homes for the first time, said an official.

According to the technical advisor to the government, Salem Abdo Khali, the legislation, when it comes into effect, is likely to trigger the development of a 4 kms land reclamation project, on the south of Fujairah's port.

Dubai was the first emirate to permit foreigners to purchase property in designated areas during 2002, which brought about an economic boom.

Currently, investments in Fujairah are on the rise due to its ideal location outside the Gulf and the narrow passage of Hormuz, through which about 17 million barrels of oil are transported everyday.

Among the billion dollar worth projects that are set aside for Fujairah, a few include a liquefied natural gas storage hub, an overland pipeline to reroute oil exports from Abu Dhabi and expanding the handling capacity of the port.

Construction of a new freeway could actually cut down on the driving time to the emirate by over more than half an hour, and would encourage more Dubai investors to invest in properties at Fujairah.

Khali said "With the road, we will be easily linked to demand for real estate from Dubai." The details of whether the new laws of foreign ownership would be extended to the freehold, is yet to be known.

However, Khalil mentioned that the plans for real estate land reclamation, in addition to more industrial land planned to the north of the port, are at their early stages. He added, that the new development will comprise of town houses, villas and apartments.

Labels: Fujairah, Property Law

High Rise Properties, the Dubai based developer, is expected to offer atleast ten more towers in Dubai for sale, with 16 low-rise buildings in Ajman for investors as its record touches Dh.20 billion.

The Chief Executive of High Rise Properties, Faisal Ali Moosa, said "On the whole, our portfolio would be around Dh.20billion involving those already announced and the ones that are now under planning and designing."

"Among these, a minimum of eighteen towers is likely to be constructed at Jumeirah Village South, and a group of sixteen low rise buildings in Ajman, which is sold at a price of Dh.14 million per housing about 80 to 85 flats, most of which has already been sold to investors."

He added "we are overwhelmed to see the demand in the market. The market demand continues to outgrow supplies."

"We are planning to develop major mixed use developments, comprising commercial, residential, shopping and hospitality centers, that create communities," he said.

Al Moosa is of the opinion that the property prices will continue to appreciate in the coming years. "Now international buyers are cracking properties and the demand is more from international markets such as South Africa, Russia, Europe, Iran and India. Besides, high rents are prompting companies to develop their own properties or purchase it for employees residence, which creates new asset class for companies," he says.

Labels: Ajman, New Developments, Real Estate Company

Abu Dhabi plans to invest Dh.305 billion in construction projects in its Western Region during the coming year.

As per reports by National Consultative Council (NCC), the projects earmarked include, new houses for UAE nationals, educational institutions, hospitals, parks, mosques, roads and market places.

The project comprises 36 bridges and interchanges on Al Ghuwaifat to Abu Dhabi highway, along the Saudi border. According to the group, such a decision was taken, as most of the areas in the western region lacks proper infrastructure.

Abu Dhabi covers 89 percent of total land mass of UAE, and the western region is a vast desert area that accounts for 83 percent of the emirate's land mass.

Labels: Abu Dhabi, Construction Projects, New Developments