Dubai Real Estate News
UAE Property Market Trends and Reviews

Solanki Holding and Investments Limited, leading UAE-based conglomerate, forayed into proper sector with the launch of their new entity, Solanki Real Estate, projected to invest Dh.12bn into the sector.

Among their landmark developments will be the Dh.9bn worth project at Al Marjan Islands in Ras Al Khaimah.

Comprising 1500 apartments, several commercial units, and 100 villas, spread across 1.5million square feet of retail space, and a hotel, the development is likely to be launched in three phases. It will also include an elaborate shopping mall and several retail outlets.

Phase One is scheduled for launch within next three to four months, depending on market conditions.

Despite the bleak market conditions within the property sector, Solanki is confident that the long-term picture is bright, with the banks sure to facilitate financing.

Other development plans by the company include projects in the International City, Dubailand, Dubai Silicon Oasis and Jumeirah Village.

The Phase One of the International City is worth Dh.80million, comprising 140 units in a 10 storey development. About 60 percent of the project is now complete, said Abdul Rahman Esmail Solanki, the Chairman of the Company.

"We have been operating diverse business in the UAE for 35 years now. We are proud to announce our first real estate venture. The spectacular Al Marjan Islands of RAK has been an obvious location choice for us, which serves as beautiful backdrop for a mixed-use community, while also giving us an opportunity to cater to the growth of the emirate in terms of tourism, activity and population," said Abdulrahman Ismail Solanki, Chairman of Solanki Holdings.

Although Solanki did not announce any immediate launch of projects, they are confident about the GCC market and UAE, in particular, as the fundamentals are all here, said Emad Pattni, the CEO of Solanki Real Estate.

Labels: Real Estate Company

The Jumeirah Beach Residence (JBR) by Dubai Properties is said to be the centre to New Dubai. Consequently, the Murjan cluster is the heart of the emerging New Dubai.

JBR comprises 36 residential towers, divided into six clusters -Murjan, Amwaj, Rimal, Bahar, Sadaf and Shams, that offers studios, single, double, triple and four bedroom apartments to penthouses to terraced apartments, duplex apartments, loft apartments with garden.

Located along the edge of Dubai and Jebel Ali, Murjan is away from the pounding traffic of Deira, Sharjah and Bur Dubai. It takes less than an hour to reach Abu Dhabi from Murjan.

Murjan, a part of JBR, is a freehold property, built last year. The towers are of top quality comprising sleek studios, double bedroom, four bedroom and penthouses.

Murjan also offers 'The Walk', a village comprising jewelry stones, beach clubs, bespoke tailors, high-end restaurants and night clubs. This is apart from access to several gyms and private beach and luxury living for the layman. Apart from the said, for the shopping lovers, the Mall of Emirates and the Ibn Battutta Mall are located adjacent to Murjan locality.

The six clusters of JBR offers other amenities such as the Saville Row and Saks Fifth Avenue and low-cost food outlets located on the plaza level of Murjan. Two of the gymnasiums are already open, and three more are likely to be opened by the first quarter of next year. There is also personalized taxi service, secure parking and crèche on the offer.

Labels: New-Dubai

Labels: Madinat-Al-Arab, Residential

Leading developers in Dubai are putting on hold the sales of their properties, until the situation improves in the real estate market of the emirate.

Nakheel's Palm Jebel Ali- Project Director, Ali Mansour, said that they plan to reassess sales strategies in light of the prevailing market conditions. "We are reviewing everything now, and have no new plans for the near future," said Ali Mansour.

Palm Jebel Ali is the second project of the Palm trilogy developed by Nakheel, located in the center of Jebel Ali, close to Al Maktoum International Airport and the Dubai Waterfront development. Featuring signature villas, garden villas, luxury apartments, town homes and penthouses, it is expected to house a population of 300,000.

Limitless has also not launched the sales of its Arabian Canal project. The Project Director for the Arabian Canal, Rainelan Raine, said that the company is watching the market carefully, and will judge the right time to commence sales.

"There is a huge interest in the Arabian Canal project but, the sales will have to wait," Raine said. Arabian Canals is one of the longest man-made canals, the excavation of which, will begin near Dubai Marina, and will flow inland around the Al Maktoum International Airport. Financing for the first stage of the project has already been completed, the developer said.

The Dubai-based real estate developer, Rufi Real Estate too, said that it is reviewing its strategies and has postponed the launch of few of its realty projects until the second quarter of 2009.

The developer was due to launch two of its residential towers in Meydaan and The World, where, three islands had been purchased. But, it has deferred all that for now. Rufi expressed hope about real estate prices picking up towards middle of 2009 in the emirate.

Labels: Latest News, Sales

Major investment, real estate and finance companies in Abu Dhabi have joined together to announce the launch of Abu Dhabi Finance, a new entity formed to serve the real estate market of the emirate, and to serve the demand for mortgage finance by consumers.

The Abu Dhabi Commercial Bank, Mubadala Development Company, Aldar, Tourism Development and Investment Company (TDIC) and Sorouh Real Estate PJSC are the shareholders of the new finance company, which will initially offer mortgages to
buyers in the emirate.

The companies are estimated to represent about more than two-thirds of the new units under-construction in Abu Dhabi.

With a capital of Dh.500million, the objective of the company is to help Abu Dhabi meet its long-term strategies of sustainable economic growth by financing the growing demand for real estate.

Following one year of planning, Abu Dhabi Finance has been launched with a complete range of mortgage products to appeal to a wide range of borrowers.

The Chairman of Abu Dhabi Finance, Ali Eid Al Mehairi, said "The huge demand for real estate in Abu Dhabi implies that there would be greater demand for mortgage financing. Our team has been working towards creating attractive, innovative mortgage products to meet requirements of all types of homeowners."

Abu Dhabi Finance plan to offer mortgages with a range of benefits, including loan-to-value ratios of up to 85 percent, flexible payment methods, loan terms between three and thirty years, and debt service ratios of up to 55 percent.

The Chief Executive of Abu Dhabi Finance, Philip Ward, said "We are aiming to become the leading supplier of mortgage products. We have invested heavily in developing our products and in training our Mortgage Advisors, so that clients can rest assured about getting the right mortgage for them."

Labels: Abu Dhabi, Mortgages

Dubai Investments Real Estate Company (DIREC), one of the largest investment companies listed in the UAE Stock Exchange, in partnership with Gowealthy.com, the leading global property lifestyle brand in the region, have announced sales of the latest phase of the Ritaj Community development.

The construction of this unique five-storey project is progressing as scheduled towards its completion and handover to purchasers during June 2009, the official spokesman revealed.
The project comprising 360 studio units would be just right for small families and local companies seeking alternatives to rising rents and operating costs. The prices of apartments begin with Dh.498,000 with a down payment of just2.5 percent.

Ritaj is targeted towards end-users seeking to convert their rent payments into ownership of an appreciating asset and corporations seeking to convert their HRA (Housing Rent Allowance) into a capital asset.

The payment plan permits a payment of just 25 percent to be paid during construction period and the rest 75 percent to be paid at the time of handover, funded through readily available mortgage facility.

A sprawling service wing facility at the ground floor is one of the most enviable features of the development, which the residents are bound to enjoy, in addition to common amenities such as the gymnasium and swimming pool.

The project, along with community as a whole, has the advantage of being in close proximity to the amenities of Green Community, including its shopping arcade, restaurants, supermarket, and The Marriott Courtyard hotel.

Designed by Al Jabal Engineering Consultants, the residents of Ritaj get to enjoy necessary amenities as it forms a part of a fully equipped community center planned by DIRC, and hence can gain access to cafes, restaurants, supermarket, shops, pharmacy, Mosque, clinic, games room and theatre-style movie room.

The Center would be the focal point for residents offering essential services during the day, followed by relaxation and entertainment services offered in the evening.

Labels: Community, Residential, Sales

Emaar Properties has waived off the clause of paying 30 percent of the total property value before sale of their units in the markets.

According to the Chief Executive of Blu Realty International, Amr Soliman, the restriction of 30 percent payment of total property value before sale of units, no longer exists. Yet, another realty agent is also said to have waived off the clause.

The transfer and sale of off-plan properties was so far permitted only after the 30 percent of total property value had been paid, and no transfer was permitted until the payment was done. According to Emaar, this move was adopted to ensure that the investors and end-users purchasing their properties are genuine.

Early this month, Emaar launched two more payment schemes. One of the schemes permitted property payments for more than five years after handover. Another allowed potential investors to rent a property before they take a decision on whether to purchase it or not. This was done to offer investors with more options and revive property sales.

Property developer, Union Properties, however, has not announced any change, but, has stated that the company will not permit buyers to re-sell their units until they have paid atleast 20 percent of their property value.

On the other hand, Deyaar Development Company, revealed that the company has never insisted on any percentage payment before permitting resale, rather, it emphasizes on certain amount of down payment only.

Labels: Off-plan, Real Estate News

Leading UAE-based developer Tameer has announced job lay-offs involving half of its workforce in view of the slowdown in the UAE property sector caused by the global financial turmoil.

Tameer handed over redundancy notices to about 180 employees last week. The company has a total of 350 employees. The main projects by the developer include the Podium in Dubailand, Platinum Towers in Business Bay, Tameer Towers in Al-Reem Island in Abu Dhabi.

The news of job cuts came on the same day when Omniyat Properties confirmed job cuts affecting one-third of its workforce, in order to ride out the real estate downturn. The company axed 69 jobs, and also called back few of its previously announced projects.

Damac Holding, the largest property developer in Dubai, also announced plans to lay off 200 employees.

In the meanwhile, the Chairman of Emaar Properties, Mohammed Ali Alabbar, said that there are possibilities of redundancies, due to the current slowdown witnessed in the market.

The financial crisis has hit the demand for properties in Dubai from foreign investors, which constitute the bulk of buyers, while tightening liquidity has made home financing seem more difficult.

According to reports by HSBC, the property prices in Dubai fell 4 percent between September and October this year, with the villa prices dropping by 19 percent.

Labels: Emaar, Latest News, Omniyat

Nakheel's new project in International City, namely, the 'Forbidden City' has been awarded for construction of its first phase, to Gammon and Billimoria.

The new affordable housing cluster draws inspiration from the legendary Royal Court Palace of Imperial China. Forbidden City will comprise 4000 low-rise studio, single and double bedroom apartments. Located at the core of the development will be a landscaped vista, leading its way to an ornate grand Mosque, the spiritual centerpiece of the community.

The work on the development, which began last April would be complete by 2011. The project would be completed in four phases.

The prices of studio is nearly Dh.730,000 while that of single bedroom apartments would be Dh.950,000 and double bedroom would bear a starting price of Dh.1.4million.

According to Rashid Obaid Al Helli, General Manager, Nakheel's International City, about 40 percent of the units at the Forbidden City have already been sold out. Here, a buyer is forbidden to purchase more than three properties, so as to eliminate speculators and help end-users enter the market.

However, Nakheel plans to retain few rental units in the project. Apart from 40,000 homes, the project includes 50 retail stores, restaurants, food outlets, boutiques and internet cafes. The close proximity to the Dragon Mart (the wide range of Chinese merchandise outside mainland China) and the Lake District (a well-planned residential community offering wonderful views of Al Warsan Lake) are few other attractions for residents. The Al Warsan Lake is one of the few freshwater wetlands in UAE, housing 190 species of birds, including the rarest ever known to Arabian Peninsula. Nakheel plans to introduce suitable amenities here, which would enable public to enjoy the wildlife there.

Gammon & Billimoria LCC is the new joint-venture company by two of the leading Indian construction companies, who have joined hands in Dubai, and is all set to undertake general construction projects in the UAE and GCC countries, with their immense wealth of experience on all kinds of civil and building engineering works.

Labels: Forbidden-city, International City, New Contracts

Labels: Palm Jumeirah, Resorts

Two leading real estate finance providers of UAE, Tamweel and Amlak Finance PJSC, would merge into a new entity under the umbrella of Real Estate Bank, the Ministry of Finance announced. The merger is hoped to create a strong unit likely to be a major boos to Dubai property finance market.

The merger would match international standards, following involvement of all financial and legal formalities, separate assessment and approval for integration between the companies.

The Chairman of Tamweel, Shaikh Khalid Bin Zayed Bin Saqr Al Nahyan, said that the merged unit would boost the confidence of investors in both financial and property sectors in the UAE.

Mohammed Alabbar, a member of ruling council of the Gulf emirate and Chairman of Emaar Properties, speaking about a four way tie-up between the two Dubai-based Islamic lenders, the Real Estate Bank and the Emirates Industrial Bank, said that the new entity would be called 'Emirates Development Bank'.

The new entity would be supported by capital and funding, Alabbar assured. According to the Finance Ministry, the merger is a major landmark development for the UAE financial market. It will form a new entity that serves as cornerstone of the real estate finance market, which has great fundamentals.

Labels: Mortgages, Real Estate News

Dubai's RERA (Real Estate Regulatory Authority) announced that all real estate companies in Dubai should henceforth use the new online software 'Oqood' for off-plan property sales and transactions.

Any off-plan property sales through registered agents or brokers with RERA should be done online using the software through the agency. The software will offer a unified template of property sales contracts between sellers and buyers, duly designed and approved by the Agency.

The property developers are given a time period of three months to train their employees on this new system. The training will be provided by Emirates Real Estate Solutions (ERES), who designed the software.

In the opinion of Sultan Butti bin Mijrin, Director General, Land Department, and developer of the Oqood system, this is an important tool to regulate the property market.

Labels: Latest News, Off-plan

For the first time, Habtoor Group has announced sale of its 24 freehold apartments of 'Harbour Island Resort & Spa' development on the Crescent, at the Palm Jumeirah.

The announcement was made by Mohammed K. Al Habtoor, the Chief Executive of the group.
The project, currently estimated to be worth of Dh1.2billion, may go up further, depending on prices of materials. The apartments of this exclusive project, has all the amenities of a hotel. Depending on the demand for the project, more units will be offered, Al Habtoor said.

The Habtoor Island will house 6-7 restaurants, out of which one of the biggest will be managed by a UK firm. The Chairman of the group, Khalaf Al Habtoor said that the company aims to offer a property that would gain recognition as one of the finest developments in the plant. The company is also aiming for LEED Gold Rating certification for its environmental friendliness.

"The fact that we are committed to deliver an unparalleled lifestyle is evident now, as we have allocated 70 percent of the development towards gardens and water features," Al Habtoor pointed out.

Labels: Environment-friendly, Freehold Property, Palm Jumeirah, Sales

The Big 5, one of the world's largest trade fair for the construction industry in the Arabian Gulf and the associated suppliers, was unveiled on 23rd November 2008 at the Dubai International Exhibition and Convention Center.

The five-day event involves participation of 53 countries with more than 3000 exhibiting companies with $800bn worth of construction projects and about 50,000 visitors from around the world. The organizers of The Big 5 event, dmg World Media Dubai, revealed the top five owners, managers, contractors, financiers and architects involved in the construction projects of the UAE.

Out of the tables released today, companies from the UAE, Belgium, Netherlands, United States, United Kingdom, India and Australia, are among the top in terms of ranking of the value of projects with which they are associated.

Leading real estate developer in Dubai, Nakheel tops the list of property owners in the UAE, with Dh.360.44billion worth projects, revealed the organizers. The biggest projects by Nakheel are the Palm Deira, the World, Nakheel Harbour, Dubai Waterfront and Tower development.

This is followed by a Belgian dredging company who is the Principal Contractor, the US-based Hill International tops the Project Managers list, the Abu Dhabi Commercial Bank leads the Project Financiers list, and the Australian firm tops the list of Project Architects with the development of a small emirate of Umm Al Quwain.

The civil construction projects continue to dominate projects that are currently in progress, topped by Jumeirah Gardens ($95bn), Dubailand ($54bn), Palm Deira ($40bn), Yas Island ($38bn) and White Bay Umm Al Quwain ($29bn).

The rankings are done on the basis of analysis of active construction projects that are currently in progress in the UAE across all sectors including oil and gas, civil construction, water, power, industrial and petrochemical sectors contained within the database of Proleads, the Research Partner of The Big 5.

Labels: Nakheel, Property-show

Labels: Construction Projects, Damac Properties

Eager to put an end to the confusion and panic prevailing currently in the market, the master developers are said to be offering payment extensions to property developers in Dubai.

A developer in Dubai, when speaking to the media, revealed that when they requested their master developer to defer their land payment, they were readily granted a three-month extension.

The extension granted was for a plot of land on the waterfront development, for which, the developer had remitted 50 percent of total value at the time of purchase.

In the meanwhile, the infrastructure projects in Dubai, such as the plans by Roads and Transport Authority and the new Al Maktoum International Airport in Jebel Ali, would all proceed as stipulated in Dubai Strategic Plan 2015.

According to Nasser Al Shaikh, the Director General of Dubai Department of Finance, a growth rate of 11 percent annually, is expected until 2015, but with the current situation, Dubai would continue to witness economic growth, although at lower rates.

The government and financial institutions are getting highly transparent in their operations and transactions. This is more evident, with Dubai initiating new laws to regulate its banking and property sectors, and this is no-doubt a positive outcome of the global crisis.

Labels: Infrastructure, Latest News

Inflated property prices on the Palm Jumeirah have plummeted 40 percent, real estate brokers reveal.

However, villas and apartments are still selling at prices higher than original. Most property owners are hurrying up to sell their properties, said Robert Macnair, Sales Director, Elysian Real Estate.

The urgency could be due to the fact that there is a large payment coming up, or the market has dropped over the last few months. The Executive Director of ETA Star, Abid Junaid, said that the current downturn is a reflection of the market correcting itself, and this is a good thing, with the prices getting more realistic.

However, in the opinion of Amlak, the mortgage lender, it is temporarily halting new mortgages and rubbing salt in the wound. This could prove counterproductive, as this is the time to channel more funds into mortgages so that end-users can purchase, said Junaid.

According to few analysts however, this scenario does not reflect the sliding property market. Others are confident that it is a temporary condition, which is likely to be resolved soon.

Labels: Market Trends, Palm Jumeirah, Property Prices

Several property agents in Dubai predict a bright property market, with the sector expected to pick-up within next six months.

The CEO of Dubai Properties, Mohammed Binbrek, said that the current issue is more due to public sentiment, than due to liquidity or resource availability. Once the fears and concerns of the people are addressed, the business would return to normal.

The same optimism was seen among the respondents of a survey, involving 170 Dubai-based property agents, out of which 77 percent felt that the issues currently plaguing the Dubai real estate sector would vanish in six months time.

Pointing out to other markets, the Managing Director of Better Homes, Ryan Mahoney, said that the markets had a slow phase for a couple of months, and then improved in terms of transactions, depending on the availability of financial lending.

But Mahoney predicts that although the transactions may not rise to previous levels within next six months, the prices would stop falling, and then grow again, which may take about a year.

Labels: Estate Agents, Latest News, Market Trends

Out of Dh.1.84trillion global waterfront projects, about 50 percent would be accounted to by the region. According to industry analysts these projects are in pipeline for next five years.

With more than 50 percent of the projects in hand, UAE tops the list of global waterfront projects, said Gavin Boyd, the Director of Palm Deira development.

During the early 1990s Dubai had only 70kms of coastline. This is expected to go up to 1000kms by 2015, revealed Hamad Bin Mejren, the Executive Director of Business Tourism at the Department of Tourism and Commerce, Dubai.

Companies will be glad to move their headquarters to waterfront destinations, said Boyd, who was speaking during the Urban Waterfront Conference.

According to Al Mejren, the waterfront developments would be a major boost to tourism and their contribution to Dubai's GDP. The residential and land real estate will be split equally, and waterfront projects would attract more commercial buyers. This is mainly due to the fact that waterfront projects such as the Palm Deira will help ease the clogged traffic even in busiest areas of Dubai, Boyd said.

Labels: Middle-East, Water front

The worlds first rotating skyscraper, 'The Dynamic Tower', has been named as one among the "Best 50 inventions of the Year" by the TIME Magazine, due to its revolutionary design and innovation.

Created by David Fisher, the renowned Italian architect, the tower was one of the first choices in a list of ground-breaking inventions. Every floor of the tower rotates independently so as to form a building that constantly changes its shape and appearance, resulting in a unique and evolving architectural landmark.

The environment-friendly tower is the first building to be completely self-powered with wind turbines, positioned horizontally between each floor. The photovoltaic cells on the roof of each rotating floor, produces solar energy.

The Dynamic Tower in Dubai will also be the first high-rise to be built completely from prefabricated parts that are custom-built in a workshop and then installed on site.

This method comes with several benefits, including environmentally clean on-site construction, reduced time and cost of construction, less onsite accidents. Residents of the tower can park their cars at the entrance of the apartments with voice activated systems.

The residents can get a glimpse of the world rotating around them when looking through the glass wall of the buildings. These buildings will also be the first wherein construction begins at the top, with each floor mechanically installed from top to bottom.

Labels: Dubai City, Environment-friendly, Latest News

The Dubai Real Estate Corporation (DREC)-owned asset management group, 'Wasl', announced plans for expansion initiatives for several landmark properties in Dubai. This is a part of its directive to monitor and ensure the sustainable development of property sector for Dubai Government.

The HSBC Bank building in the Bani Yas market and the Dubai International Marine Club (DIMC) are few of the properties likely to witness a new dimension under the latest plan by Wasl, which focuses on hospitality, tourism and healthcare sectors.

Even the Ras Al Khor area will be revamped bringing about 2500 residential units on stream for Wasl employees. The project will be completed in 18 months.

The asset management group is conducting a thorough study of the tourism sector to identify projects, including the star hotels, so as to meet the objective of Dubai in attracting 15 million visitors towards the year 2015.

According to Hesham Al Qassem, CEO of Wasl and DREC, Dubai is beginning to gain a strong foothold on the global tourist landscape and is one of the most frequented destinations. Hence, it is vital that the status of Dubai be complemented by giving a fresh impetus to key developments.

"Our current efforts will help in successfully bridging any demand-supply disparity and price fluctuations by equipping Dubai to accommodate the increasing number of residents over the next couple of years," said Qassem.

The demand for commercial space in Dubai has increased considerably, which reflects the robust growth in real estate sector.

"Wasl is keen to service the growing demand for storage and commercial space from light and heavy industries, which emphasizes the increased trade activity in Dubai," Qassem added.

At present, Wasl manages a customer-base of 20,000 in residential and industrial sectors, including 5000 industrial land plots, 15,000 residential units and several hotels and entertainment amenities.

Labels: Real Estate Projects

The Dubai Land Department, the government body which monitors land-related affairs and private properties within the emirate, together with RERA (Real Estate Regulatory Authority), has announced the official launch of 'OQOOD', the new online application that enables the implementation of Law No.13 of 2008, which regulates the interim real estate register in Dubai.

The announcement, which came during an introductory seminar organized by the Dubai Land Department and RERA, organized for benefit of property developers in the emirate. The Dubai-based KM Properties sponsored the event.

Assistant Director General Excellence & Organization Governance, Mohammed Sultan Thani, said that Dubai has witnessed the issuance of real estate laws that prioritize the interest of country and all industry stakeholders. The laws aim to create trust in the market, attract foreign investment and sustain the growth of the sector. The latest law focuses on interim real estate register.

Developed by Emirates Real Estate Solutions for the Dubai Land Department, the process of 'OQOOD' online interim registration process will help minimize conflicts between developers, sellers and investors, while also reducing the growth of off-plan sales and reselling costs.

Charges levied by the Dubai Land Department would remain the same one percent of total value paid by seller, and the one percent paid by consumer.

According to analysts, the new registration scheme will bring about higher transparency levels and eventually create an online Propety Price Index (PPI).

The Chief Executive of Emirates Real Estate Solutions, Ahmad Al Qaizi, said that the online launch would facilitate availability of detailed data on private proprietorship of all properties that have been sold off-plan in Dubai.

It will protect the rights of customers by safe-guarding development against any manipulation, and also safeguards the interest of developers, investors and end-users and the government. The move also depicts seriousness from the end of government in raising transparency, Qaizi said.

About 80,000 units or more have already been registered through the online registration facility so far.

Labels: Latest News, Property Law

With property slowdown hitting the emirate, a committee has been established by the Dubai Government to monitor future real estate projects.

The Panel constitutes master and private developers with the intention of securing future supply. No projects would be called off and the committee will decide on anything to be launched only in the future, he said.

Fears of property sector slowing down have been worsened by the global financial crisis, and this has made financing harder to come by and led to project delays.

The biggest developer of the Arab world, Emaar Properties, when speaking to the media, mentioned that it would provide more time to customers to repay their mortgages, given the lending conditions among local banks.

However, a 9 to 13 percent slow down is likely due to the current global recession, said Emaar Chairman, Mohammed Alabbar.

Labels: Dubai Real Estate, Latest News

With the ongoing speculation in the property market, coupled with the liquidity squeeze which gripped the local banking sector, the Dubai property sector has come to a halt, and fewer people are seen investing on new properties.

A "dramatic slowdown" is likely in the short-term, as property developers such as Nakheel and Emaar will find it difficult in securing new financing, reports the Gulf News.

However, the projects that have already commenced and have already made commitments with financial institutions will continue, despite the financial turmoil, as the local banking system in the UAE has already been injected with liquidity.

According to industry sources, the current drop in real estate does not seem long-lasting. Although at present the property prices have eased a bit, the forthcoming slowdown in construction will reduce supply, which in turn, would drive up the prices again.

The Chief Executive of Rasmala Investments, a networking event with Dubai Property Sector, Ali Al Shihabi, agrees that there is little demand for real estate at present, as the investors are cautious and are awaiting prices to drop further. The Banks also do not have much capital to finance the development of new properties.

However, for an investor, this would be the best time to buy. Existing projects would continue. Major developers would continue their work, although at a reduced level. Dubai already has solid work for the next three years, and the current slowdown in supply would once again generate demand and increase in prices, during the next few years, Al Shihabi said.

The Resident Partner of Property Consultancy firm Cluttons, Ronald Hinchey, said that the slump in real estate activity may be due to the lack of liquidity in Banks and the reduction in loan-to-value ratios.

People are finding it difficult to borrow money for property as the mortgage providers have lowered their loan-to-value ratios to 50 to 70 percent from the earlier 80 to 90 percent. The lending institutions too have committed funds on properties that are under construction.

Al Shihabi pointed out that Dubai has been hit by its own financial turmoil this year, due to the downfall of major financial institutions such as the Lehman Brothers in the US. During the first six months of the year, an influx of several billion dollars from global financial institutions has been common.

Labels: Latest News, Market Trends

A member of Tatweer Dubai, The Tiger Woods, revealed that the construction work on the 55million square feet golf community development is heading towards its scheduled completion by the end of 2009.

The project has met with considerable progress across all facets of development, including the Al Ruwaya Golf Course, the world's first to accept design cues from the Champion Golfer. A boutique hotel and a club house designed by Elie Saab are also coming as per plan.

According to The Tiger Woods Dubai, there is a huge demand ever-since the launch of sales in July and the development is drawing good end-users and investor response.

The Project Director of The Tiger Woods Dubai, Abdulla Al Gurg, said that the timely progress made by the company indicates the commitment by the company to deliver promises not only with regard to completion dates, but also with creating a development which would be one of the much sought after golf destinations in the world.

A major component that has registered a steady progress is the Al Ruwaya Golf Course, wherein the 13 holes have been rough shaped and detailed shaping is in progress on nine of the holes. Irrigation, landscape and drainage is being installed on the first few holes.

Construction of lakes is also making progress inline with the proposed date of complete of the golf course.

The final design stages for the exclusive 360,000 square foot luxury boutique hotel is being finalized, with the construction of exclusive hotel, due to commence next month. It would near completion towards fourth quarter of 2010.

The Tiger Woods Dubai has also recently entered into a deal with the renowned three-star Michelin Chef Guy Savoy for a signature restaurant, his first ever debut in the Middle East at the boutique hotel.

The hotel will include 90 suites, 14 bungalows in the range of 1300 to 9500 square feet. Spreading across a 10,000 square foot oasis-style swimming pool and spa, the hotel targets the top-tier clients.

Labels: Community, Construction Projects, Golf property, Luxury Homes

Labels: Dubai Silicon Oasis, Sales

The demand for Abu Dhabi property units will be met in four years time, said Urban Planning Council General Manager, Falah Al Ahbabi.

Speaking to delegates at MEED Abu Dhabi Conference, Al Ahbabi said that the economy is growing at a rapid pace, but the infrastructure and buildings in Abu Dhabi will take atleast four years.

The developers are being pressurized and we are confident about solving the issue. The prices will stabilize and supply would come online, he said.

Shortage in supply of units is a fact, and has been an issue over the past two years. This shortage would continue for next 3-4 years, by which the demand and supply would meet, agreed Al-Ahbabi.

As per last month's report by Abu Dhabi Chamber of Commerce, Abu Dhabi has a shortage of minimum 28,000 housing units this year, and this has pushed up rents, and the total demand for units would touch 70,000 by 2010.

The population of Abu Dhabi is currently more than a million and has been growing at 7 percent a year.

Labels: Abu Dhabi, housing, Market Trends

The last date for registration of off-plan properties, under the pre-registration system, by the Dubai developers has been extended till the year-end. Earlier the first week of November was declared as the deadline for registration of off-plan properties.

According to a senior government official, the projects launched prior to introduction of pre-registration system, being sold as off-plan now, will have to register by the year-end. Stringent measures would be taken against those failing to do so, the official warned.

The Assistant Director-General of Dubai Land Department, Mohammed Sultan Thani, said that following the issuance of Law No.13 of 2008, developers are required to register all their units before launch with the Land Department, and only then proceed with their sales.

The Law No.13 regulates initial property registration in Dubai, and aims to create further safeguard consumer interest in the Dubai property market through introduction of mandatory system of pre-registration at the Land Department for off-plan sale contracts of property units.

As per the new regulation, any off-plan sales without registration will remain invalid. Off-plan sale implies the sale of real estate units on the basis of architectural plan of the property prior to building the structure. The registration has to be done by the developer and not the first purchaser.

During the secondary sale, the seller will have to keep the department informed and register the deed by paying necessary charges. In case of home mortgages, banks will have to register the deals and not the mortgagee, Thani said.

Labels: Latest News, Off-plan, Property Law

Tiger Properties has announced the delivery of its 40 storey Jumeirah Lakes Tower project in New Dubai.

Located right in front of Dubai Metro Station, and located within just a walking distance from Almas Tower, which houses the region's only Dubai Diamond Exchange.

The newly formed facilities management branch of the company intends to serve 500,000 square feet of development. The facilities management forms a part of the expansion plans by the group. It is expected to serve the mounting requirements of the entire group including the tenants, investors, and Tiger's clients for providing high quality management and maintenance services to units delivered.

The Jumeirah Lake Tower project by Tiger aims to accommodate the most stringent requirements of its location and its residents.

The completion of this high-calibre project is proof of Tiger's commitment towards timely delivery, and it is just one of the several towers to be completed within the year, said Taha Mohammed, the CEO of Tiger Properties.

Labels: Jumeirah-Lake-Towers, New-Dubai

Labels: Infrastructure, Nakheel, Palm Deira

Awali Real Estate Investments, the renowned real estate investment company, revealed that it has been holding discussions with the American Trust about offering funding solutions to buyers and investors for Awali City plots and buyers of residential units.

The initial agreement has been signed to fund investors in Awali City, but the details of the agreement are yet to be revealed.

The Board Member and Chief Marketing Officer of Awali Real Estate Investment Company, Mohammed Hussein, said "when the global markets are struggling to find suitable funding solutions for real estate investment projects at all levels, and are having serious trust issued, we continue to seek partnerships that offer best funding solutions for investor sin Awali City, and we are taking the final steps towards offering the best possible funding solutions."

The Managing Director of American Trust in Dubai, Alex Mond, said that the strong financial situation of Awali has helped the Trust in taking this step confidently, and that the Trust would offer best funding solutions for investors in the City in accordance with the nature and investment of the project.

The Awali City is a complete residential city project, with 136 plots for residential and commercial purposes. Towers of 17 to 50 storeys are likely to come up in the locality, housing more than 120,000 people.

The plot dividing process and the road works are complete, and the Awali City investors can begin building their developments directly.

Established by the Awali Group, the Awali Real Estate Investment Company is a Dubai-based firm, founded by the Al Nemer Group, as a part of the companies plans to expand across the region, tapping the real estate sector in GCC.

Labels: Ajman, Real Estate News

The real estate developers and agents in Dubai have been so far enjoying the benefits of the booming property market in the City, with investors ready to invest on any project that made it past the drawing board stage.

However, the turmoil during the last couple of months has brought about radical changes in their businesses. Leading developer Damac, which is currently working on 51 projects in Dubai alone currently, has already begun overhauling its organization. The developer is said to have axed a few employees.

The CEO of Damac Properties, Peter Riddoch, who spoke to AME Info, says that the ongoing global meltdown will eventually make companies reconsider their staffing levels and recruitments.

"Damac Properties too will consider its own position based on the market situation, and ensure that it maintains the right staffing levels," Riddoch said.

Another leading real estate agency, Better Homes, is also said to be feeling the impact of the global slowdown in sale of properties, with cutbacks affecting up to 50 percent of few of its departments.

When addressing a conference at Dubai International Financial Center, Sultan bin Sulayem, Chairman, Dubai World, ruled out any possibility of a drop in prices of the housing.

"The imbalances in demand-supply situation continue, and any downward trend in prices is unlikely, despite the fact that few investors may try to sell lower. There is an appetite in the market, but the will is lacking," Sulayem commented.

However, despite such assurances, the imbalance in demand-supply situation has not been found, and majority of new districts in the city, such as the Palm Jumeirah or the Business Bay, are still only partially occupied.

Changes within the property market in the city are already evident. For instance, a developer has already priced one of its projects for one-third the price than were originally mooted, a move which otherwise would have been never happened, even a couple of months ago.

The Ukraine-based VIP Waterfront, the developer of the Royal Bay project at Madinat Al Arab has launched the sale of the project, offering a price-cut, to tempt investors. It is said that the properties are going up to one-third less than what the group had previously planned.

This and several more such scenarios are an indication of the tightened access to credit, which led to several previous off-plan sales. This also points out to the fact that the future breed of property investors in Dubai would be the middle class, which has so far missed the opportunity.

Labels: Dubai Real Estate, Market Trends

Leasing activity in Dubai will catch pace, as the sellers try to focus on demand patterns that signal the change to an end-user driven buyers' market, commented an industry expert.

The real estate market in Dubai is resilient and will withstand the current economic crisis, without facing any over-supply problems, said Cliff Kelaita, Chairman of Landmark Properties.

The current supply-demand situation would increase the number of sellers coming forward to lease to end-users. Likewise, we anticipate that end-users would purchase units and lease them to generate more income against mortgages. Hence, the lenders are likely to further stimulate the leasing market by launching new 'buy-to-let' products that suits requirement of end-users, Cliff said.

According to analysts from Landmark Advisory, the research and consultancy division of Landmark Properties, despite the huge growth in 2008, property prices in Dubai are still below the levels of comparable markets in cities such as London, New York or Hong Kong.

Hence, even if few projects gets delayed, or restructured, due to developers trying to cope with the current challenges, the market would still continue to remain strong and grow, Cliff assured.

As per the report by Landmark, the current liquidity concerns in the short-to-medium-term horizon would be a function of governmental action.

Labels: Latest News

Lower mortgage rates and stability in property prices are likely to bring in liquidity into the market, thereby making the properties more affordable, predict experts.

The Managing Director -Equity Research for Al Mal Capital, Robert McKinnon, who spoke to Emirates Business said that affordability being a major concern today, for the Dubai property market to get back in action, two solutions are possible -first being lowering of the lending rates, and second is to lower the property prices.

At present only about 20 percent of the population are able to afford a Dh.3million property. Property prices should decrease, if new people have to come forward and purchase properties. The ongoing financial crisis has brought about several international investors into the market, and with the tightening liquidity situation and the new regulations by RERA (Real Estate Regulatory Authority), it is crucial to retain the end-user interest in the market for achieving sustainable growth, said McKinnon.

In the opinion of McKinnon, Banks are already exposed to sufficient liquidity, and the government has been responsive enough to meet their requirements. If the property prices were lowered for a short-term, the lending institutions and banks would be more confident to lend higher loan-to-value.

The CEO of Mag Property Development Company, Mohammed Nimer, agrees that with the property sales slowing down in Dubai, the Government will have to protect the interest of developers, and bring about a balanced solution so as to not dampen the market.

Labels: Mortgages, Property Prices

Labels: Luxury Homes, Water front

Labels: em, Latest News, Shopping Mall

Property prices in the UAE saw an increase in September, with Dubai registering 17 percent increase, and Abu Dhabi registering 11 percent increased, compared to an average increase of just 2 to 3 percent during the summer months.

According to a recent report released by HSBC Bank about the UAE real estate market, the price growth is gathering pace after a brief moderation during the summer months. Although the prices are following an upward trend, rental rates in Dubai seems to be stabilizing.

The report by the bank indicates that market is likely to remain tight until 2010.

According to estimates, about 90 percent of upcoming supply in Dubai will be controlled by Emaar, Nakheel and Dubai Holdings. The demand is affected by several factors. For instance, increase in prices is decreasing affordability, which gets further augmented by the mounting pressure on mortgage rates and dropping loan to values. Recent stock market declines too have not helped improve this situation, which indicates that the region is not immune to global trends, be it property, debt or equity.

According to HSBC, in such a scenario, the off-plan market will be the first to get affected, due to high level of speculation. On the other hands, ready units will be supported by demand and any weakness would seem less pronounced.

Although the prices in UAE are getting less affordable, Dubai offers a bigger range of units targeting most income levels, unlike the Capital city.

Softening in the property market is not just healthy, but is necessary, for the sustainability of the economic story, says the bank report.

Labels: Dubai Real Estate, Property Prices

Labels: New Developments