Dubai property prices beginning to witness the Metro effect
Tuesday, June 30, 2009
The prices of properties located close to metro stations in Dubai are already beginning to rise, marking the first signs of a Metro effect on the property market, reported analysts in Dubai.
The Jumeirah Lakes Towers (JLT) on Sheikh Zayed Road, located directly opposite the Dubai Marina station are being sold for 6.5 percent more than units in buildings located further away. The difference in prices could equate to tens of thousands of dirhams, pointed out a Dubai-based real estate agency.
Several other agencies have also reported to have been receiving enquiries about properties located in proximity to the metro stations. The trend implies that with just three months left for the opening of Metro's Red Line, home buyers are already beginning to take into consideration the ease of transport when choosing their home.
In the rental market, few mentioned that there was a clear difference in values, which would probably emerge only after the lines open on September 9th. Several residents feared that landlords would take advantage of the locations in proximity to the Metro and raise rents.
The Sales Director at Landmark Properties, Michael, mentioned that units at Indigo Tower, a JLT building near the station, was going for around Dh.800 per square foot, compared to Dh.750 across similar-quality buildings in JLT.
The Head of Property Management at the Dubai-based property portal Gowealthy. com, Andrew Delport, mentioned that units in proximity to the Metro will be the first to recover, once the system was up and running.
Delport considers Dubai Marina to have a similar trend, with the Metro on the Marina side of the freeway. The tenancies are more vibrant here than in other places, offering good value for money.
Dubai Marina is the most popular area for leasing, accounting for 30 percent of new annual lease contracts in Dubai, according to the second quarter 2009 report by Landmark Advisory.
A sales consultant for powerhousedubai.com, Ian Hainey, mentioned that estate agents have been keen to highlight any available access to the Metro. However, so far there has been no drastic difference in rents between properties near the Metro and others. The uncertainty would last until it is known which stations would exactly open on September 9th, and that would have an impact on decision-marking of prospective tenants.
The Jumeirah Lakes Towers (JLT) on Sheikh Zayed Road, located directly opposite the Dubai Marina station are being sold for 6.5 percent more than units in buildings located further away. The difference in prices could equate to tens of thousands of dirhams, pointed out a Dubai-based real estate agency.
Several other agencies have also reported to have been receiving enquiries about properties located in proximity to the metro stations. The trend implies that with just three months left for the opening of Metro's Red Line, home buyers are already beginning to take into consideration the ease of transport when choosing their home.
In the rental market, few mentioned that there was a clear difference in values, which would probably emerge only after the lines open on September 9th. Several residents feared that landlords would take advantage of the locations in proximity to the Metro and raise rents.
The Sales Director at Landmark Properties, Michael, mentioned that units at Indigo Tower, a JLT building near the station, was going for around Dh.800 per square foot, compared to Dh.750 across similar-quality buildings in JLT.
The Head of Property Management at the Dubai-based property portal Gowealthy. com, Andrew Delport, mentioned that units in proximity to the Metro will be the first to recover, once the system was up and running.
Delport considers Dubai Marina to have a similar trend, with the Metro on the Marina side of the freeway. The tenancies are more vibrant here than in other places, offering good value for money.
Dubai Marina is the most popular area for leasing, accounting for 30 percent of new annual lease contracts in Dubai, according to the second quarter 2009 report by Landmark Advisory.
A sales consultant for powerhousedubai.com, Ian Hainey, mentioned that estate agents have been keen to highlight any available access to the Metro. However, so far there has been no drastic difference in rents between properties near the Metro and others. The uncertainty would last until it is known which stations would exactly open on September 9th, and that would have an impact on decision-marking of prospective tenants.
Labels: Dubai Real Estate, Latest News, Property Prices
Dubai World announces consolidation of operations
Saturday, June 27, 2009
Dubai World yesterday announced that all operational management, pertaining to real estate activities of few of its companies, are being consolidated for better accommodation of market conditions and to maximize resources and expertise.
The real estate development and property transactions of Dubai Maritime City, Dubai Multi-Commodities Center and Leisurecorp will be managed by Nakheel. The changes, however, will have no impact on the daily business of the companies.
The consolidation planning is on currently, with assistance from Consultants, Alix Partners, and the process will be completed during summer.
Dubai World, the major player in real estate businesses in Dubai and across the world, has invigorated the industry, re-defining whatever possible through its companies' efforts and dedication.
Dubai World, in its statement, mentioned that it is extremely proud of its achievements, and aims to continue to be a leader in real estate business and hopes that the current decisions will help in meeting the requirements of customers in a better manner.
Dubai World is Dubai government's investment flag bearer, with a portfolio comprising the world's most renowned companies such as DP World, Drydocks World & Dubai Maritime City, Nakheel, Leisurecorp, Economic Zones World and Istithmar World.
The real estate development and property transactions of Dubai Maritime City, Dubai Multi-Commodities Center and Leisurecorp will be managed by Nakheel. The changes, however, will have no impact on the daily business of the companies.
The consolidation planning is on currently, with assistance from Consultants, Alix Partners, and the process will be completed during summer.
Dubai World, the major player in real estate businesses in Dubai and across the world, has invigorated the industry, re-defining whatever possible through its companies' efforts and dedication.
Dubai World, in its statement, mentioned that it is extremely proud of its achievements, and aims to continue to be a leader in real estate business and hopes that the current decisions will help in meeting the requirements of customers in a better manner.
Dubai World is Dubai government's investment flag bearer, with a portfolio comprising the world's most renowned companies such as DP World, Drydocks World & Dubai Maritime City, Nakheel, Leisurecorp, Economic Zones World and Istithmar World.
Labels: Dubai Real Estate
Dubai heading towards stability in home rents
Thursday, June 25, 2009
There are indications of rent stabilization in Dubai, with few landlords still experiencing good demand for higher quality rented homes in prime locations, a leading property consultancy reveals.
Landmark Advisory Group, one of the leading real estate consultancy companies in the region, yesterday released its sales and leasing price maps for the Dubai market.
The Dubai price maps, continues to show evidence of 180 degree turnaround from the earlier supply-driven property market to a demand-driven property market, although, on an average, the consultancy hopes to see further decrease in Dubai rents for the third quarter of the year.
The latest price maps from the consultancy, indicate the distressed sale opportunities have largely been exhausted, as sellers are reluctant to lower existing prices, and buyers sometimes are even paying increased rates for their sought-after residential developments, as only limited homes are available.
According to Director of Research, Jesse Downs, at Landmark Advisory, the Dubai property market shows distinct signs of market stabilizations, and return of confidence from end-users. In a few cases, even the sales prices have increased. This is mainly due to the dynamics of each development.
Small villa developments with limited supply have tapped into sufficient value recognition among end-users with regard to location, layout, and amenities and build quality. These are among those residential developments experiencing increases in prices, such as the Green Community and the Jumeirah Islands. A similar trend is also seen in leasing rates for few villa communities.
However, the price lists indicate a steep decline in apartment prices. The economic downturn, together with large quantity of high-rise apartments that were completed last year, has resulted in over-supply in this sector.
A noteworthy element in the price maps by Landmark Advisory is the constant refinement of price differentiation, which was earlier based on factors such as location, view and quality of finish.
Off-late consumer decision making is based on factors such as environment. Those in proximity to high voltage power lines are going for lower rates, than similar units located away from power sources.
Landmark Advisory Group, one of the leading real estate consultancy companies in the region, yesterday released its sales and leasing price maps for the Dubai market.
The Dubai price maps, continues to show evidence of 180 degree turnaround from the earlier supply-driven property market to a demand-driven property market, although, on an average, the consultancy hopes to see further decrease in Dubai rents for the third quarter of the year.
The latest price maps from the consultancy, indicate the distressed sale opportunities have largely been exhausted, as sellers are reluctant to lower existing prices, and buyers sometimes are even paying increased rates for their sought-after residential developments, as only limited homes are available.
According to Director of Research, Jesse Downs, at Landmark Advisory, the Dubai property market shows distinct signs of market stabilizations, and return of confidence from end-users. In a few cases, even the sales prices have increased. This is mainly due to the dynamics of each development.
Small villa developments with limited supply have tapped into sufficient value recognition among end-users with regard to location, layout, and amenities and build quality. These are among those residential developments experiencing increases in prices, such as the Green Community and the Jumeirah Islands. A similar trend is also seen in leasing rates for few villa communities.
However, the price lists indicate a steep decline in apartment prices. The economic downturn, together with large quantity of high-rise apartments that were completed last year, has resulted in over-supply in this sector.
A noteworthy element in the price maps by Landmark Advisory is the constant refinement of price differentiation, which was earlier based on factors such as location, view and quality of finish.
Off-late consumer decision making is based on factors such as environment. Those in proximity to high voltage power lines are going for lower rates, than similar units located away from power sources.
Labels: Dubai Real Estate, Rentals
RERA freezes escrow accounts of major developers
Saturday, May 30, 2009
Dubai Real Estate Regulatory Authority (RERA) has frozen the accounts of several major property developers, until such time that they prove that construction is in progress, and that the land has been properly registered.
This move by RERA to freeze escrow accounts of developers is being done in the interest of property market, as it is grappling with fall in prices and shortage of lending.
All money made from the sale of off-plan properties must go into an escrow account, and be used solely for property construction.
The Chief Executive of RERA, Marwan bin Ghalita, said that the developers will have to provide technical reports detailing the progress of construction prior to withdrawing money from the accounts. Payments will be linked to progress made in construction.
The developers will also have to prove to RERA that they have registered investors' rights with the Land Department.
RERA is yet to reveal the number of accounts frozen.
This move by RERA to freeze escrow accounts of developers is being done in the interest of property market, as it is grappling with fall in prices and shortage of lending.
All money made from the sale of off-plan properties must go into an escrow account, and be used solely for property construction.
The Chief Executive of RERA, Marwan bin Ghalita, said that the developers will have to provide technical reports detailing the progress of construction prior to withdrawing money from the accounts. Payments will be linked to progress made in construction.
The developers will also have to prove to RERA that they have registered investors' rights with the Land Department.
RERA is yet to reveal the number of accounts frozen.
Labels: Dubai Real Estate, Off-plan
Dubai to introduce a standard property contract
Tuesday, May 26, 2009
Dubai plans to establish a standard property contract, which would form the norm for all real estate transactions. This is being done with the sole aim of avoiding small print misleads.
A senior official at Dubai Land Department mentioned that having a basic contract would be the norm, and that it would be difficult for buyers and developers to wriggle out of contracts or add fine print to current contracts.
A senior legal advisor at Dubai Land Department, Emmad Eldin Farouq, said that it would provide a clear, transparent guide to the rights of both developer and buyer.
The contract is ready, and we are awaiting directions, Farouq revealed. These will be standard contracts, to be given for all properties.
The contracts will remain unaltered, whether completed or incomplete. Any contractual agreement will have to be simple, clear and transparent. There are too many small prints in contracts now, Farouq said.
There are chances that developer can make additions to any contract, as different developments have different regulations. But the basic contract will remain the same, said Assistant Director-General of Land Department, Mohammad Sultan Thani.
According to the Lawyers, the main points of contract will remain the same, but more clauses may be included. The Partner at Hadef and Partners, Michael Lunjevich, said the standard contract would be for completed properties, signed between the buyer and seller. But, an element of freedom is necessary in a contract. Therefore, it will have standard terms as per the market norms, and thereafter, any alterations will go to a separate section, to avoid any confusion.
A single basic contract will seem easier for buyers and developers, reducing the number of disputes.
Dubai's RERA, together with the Land Department are trying hard to make the real estate sector more secure, but, are insisting that there ought to be a large onus on the buyer to read contracts in full.
During the peak times, several investors entered Dubai market with the sole intention of purchasing property and concentrated less on the contracts, than they would otherwise do so in more mature markets.
"The contract should be clear, and people should read them carefully," Thani pointed out.
A senior official at Dubai Land Department mentioned that having a basic contract would be the norm, and that it would be difficult for buyers and developers to wriggle out of contracts or add fine print to current contracts.
A senior legal advisor at Dubai Land Department, Emmad Eldin Farouq, said that it would provide a clear, transparent guide to the rights of both developer and buyer.
The contract is ready, and we are awaiting directions, Farouq revealed. These will be standard contracts, to be given for all properties.
The contracts will remain unaltered, whether completed or incomplete. Any contractual agreement will have to be simple, clear and transparent. There are too many small prints in contracts now, Farouq said.
There are chances that developer can make additions to any contract, as different developments have different regulations. But the basic contract will remain the same, said Assistant Director-General of Land Department, Mohammad Sultan Thani.
According to the Lawyers, the main points of contract will remain the same, but more clauses may be included. The Partner at Hadef and Partners, Michael Lunjevich, said the standard contract would be for completed properties, signed between the buyer and seller. But, an element of freedom is necessary in a contract. Therefore, it will have standard terms as per the market norms, and thereafter, any alterations will go to a separate section, to avoid any confusion.
A single basic contract will seem easier for buyers and developers, reducing the number of disputes.
Dubai's RERA, together with the Land Department are trying hard to make the real estate sector more secure, but, are insisting that there ought to be a large onus on the buyer to read contracts in full.
During the peak times, several investors entered Dubai market with the sole intention of purchasing property and concentrated less on the contracts, than they would otherwise do so in more mature markets.
"The contract should be clear, and people should read them carefully," Thani pointed out.
Labels: Dubai Real Estate, Property Law
Dubai likely to scrap 27 projects
Thursday, May 14, 2009
The Head of RERA (Real Estate Regulatory Agency) in Dubai, Marwan bin Ghalita yesterday revealed that Dubai is considering cancelling 27 projects.
The decision about this issue would be taken by the end of the month. The projects likely to be scrapped off include third party projects handled by sub-developers that are scattered across Dubai.
Ghalita revealed that 25 percent of projects will be cancelled in Dubai, owing to global economic turmoil. Last week the RERA and Dubai Land Department had established a committee to cancel projects in the emirate that are not feasible.
Prices of properties dropped 41 percent during the first three months of the year, as per the report by Colliers. The drop in property prices has already led to project cancellations in the region, worth billions of dollars.
More than half of the construction projects in the UAE are worth $582bn and more. These have been put on hold currently, either following a request from developers to cancel projects or, due to complaints from project investors.
The decision about this issue would be taken by the end of the month. The projects likely to be scrapped off include third party projects handled by sub-developers that are scattered across Dubai.
Ghalita revealed that 25 percent of projects will be cancelled in Dubai, owing to global economic turmoil. Last week the RERA and Dubai Land Department had established a committee to cancel projects in the emirate that are not feasible.
Prices of properties dropped 41 percent during the first three months of the year, as per the report by Colliers. The drop in property prices has already led to project cancellations in the region, worth billions of dollars.
More than half of the construction projects in the UAE are worth $582bn and more. These have been put on hold currently, either following a request from developers to cancel projects or, due to complaints from project investors.
Labels: Dubai Real Estate
Dubai, Ajman property agencies plan unified strategies
Wednesday, May 13, 2009
The Dubai RERA (Real Estate Regulatory Agency), together with ARRA (Ajman Real Estate Regulatory Authority) has entered into a joint-agreement to develop a unified strategy to develop the property sector.
The agreement underscores the need to build a unified strategy to develop, organise and modernize the activities pertaining to real estate, including developers, brokers and property management companies, and the workforce of such companies. The agreement also emphasizes the importance of strengthening the co-operation ties between the two organizations.
The agreement was signed by Marwan bin Ghalita, the CEO of RERA and the Director-General Omar Al Barguthi of ARRA, in the presence of Sultan bin Butti, the General Manager of the Land Department.
The agreement signifies a major step ahead in the real estate sector. It focuses on developing a unified vision in developing, updating and streamlining all real estate activities, companies and individuals working in brokerage offices and real estate management.
The Bin Ghalita said that apart from the said, the agreement will regulate the work of brokers and real estate advertising between the emirates, in addition to establishing a unified database in Dubai and Ajman with all necessary information pertaining to the brokerage business, real estate development and management.
This agreement re-iterates the strong relationship between ARRA and RERA, said Al Barguthi.
The agreement underscores the need to build a unified strategy to develop, organise and modernize the activities pertaining to real estate, including developers, brokers and property management companies, and the workforce of such companies. The agreement also emphasizes the importance of strengthening the co-operation ties between the two organizations.
The agreement was signed by Marwan bin Ghalita, the CEO of RERA and the Director-General Omar Al Barguthi of ARRA, in the presence of Sultan bin Butti, the General Manager of the Land Department.
The agreement signifies a major step ahead in the real estate sector. It focuses on developing a unified vision in developing, updating and streamlining all real estate activities, companies and individuals working in brokerage offices and real estate management.
The Bin Ghalita said that apart from the said, the agreement will regulate the work of brokers and real estate advertising between the emirates, in addition to establishing a unified database in Dubai and Ajman with all necessary information pertaining to the brokerage business, real estate development and management.
This agreement re-iterates the strong relationship between ARRA and RERA, said Al Barguthi.
Labels: Ajman, Dubai Real Estate, Property Law
Dubai and Ajman to merge property database
Saturday, May 09, 2009
The property watchdogs in Ajman and Dubai have got together to identify the blacklisted developers and agents, and hence have agreed to co-ordinate data in both emirates.
An MOU to this effect was signed between ARRA (Ajman Real Estate Regulatory Agency) and Dubai's RERA (Real Estate Regulatory Agency).
The Chief of Dubai RERA, Marwan bin Ghalita, said that "We will share the same database of agents and developers. If any developer is blacklisted in Dubai, it will also be reflected on their database, and they will be aware of it."
This move follows receipt of complaints that estate agents were working in both emirates, but have been registered with only one.
"We will regulate this kind of activities between the agents too. The establishment of common database will give developers and regulators and investors a clear picture of the market" Ghalita said.
The database will be made available online for people to view. The database is almost ready and will be released soon, said Omar al Barguthi, Head of ARRA.
An MOU to this effect was signed between ARRA (Ajman Real Estate Regulatory Agency) and Dubai's RERA (Real Estate Regulatory Agency).
The Chief of Dubai RERA, Marwan bin Ghalita, said that "We will share the same database of agents and developers. If any developer is blacklisted in Dubai, it will also be reflected on their database, and they will be aware of it."
This move follows receipt of complaints that estate agents were working in both emirates, but have been registered with only one.
"We will regulate this kind of activities between the agents too. The establishment of common database will give developers and regulators and investors a clear picture of the market" Ghalita said.
The database will be made available online for people to view. The database is almost ready and will be released soon, said Omar al Barguthi, Head of ARRA.
Labels: Ajman, Dubai Real Estate, Latest News
Dubai House Price Index shows 41 percent decline during Q1 2009
Thursday, April 30, 2009
The Dubai House Price Index for first quarter of 2009 released by the leading global real estate consultancy, Colliers International, has indicated a drop of 41 percent during the first three months of this year.
The index has been compiled using mortgage transaction data from financial institutions accounting to 60 percent of the mortgage market in Dubai. It demonstrates a 34 percent decline year-on-year between first quarter of 2008 and first quarter of 2009.
The property prices in the emirate had returned to the levels equivalent to that during Q2 2007, the report pointed out. When compared to other markets in the Gulf, the global crisis has had a huge impact on Dubai, mainly due to high level of integration with global economy as a regional hub, and the wide speculation in property assets before the market's peak during third quarter of 2008.
Speaking about the Q1 2009 report, the Chief Executive Officer of Colliers International, John Davis, said that the negative sentiment is a major factor contributing to decline in the index and availability of finance too has a major impact on the market. The end-users are more concerned about job security, and hence are hesitant to enter the market, despite the finances being open for them.
Looking at the brighter side of things, the index remains unaltered as in March 2009. But, it is too early to predict whether the halt in decline of the index can be sustained during the quieter summer months, Davis said.
The House Price Index takes into account the price trends achieved for completed properties, as against the properties that are still under construction. The results obtained by including the Burj Dubai development in the results, the index indicates that completed properties fell 31 percent, while the properties under construction fell 56 percent. Keeping aside the Burj Dubai, the completed projects fell 32 percent, while those under construction fell 51 percent.
Mortgage lending is beginning to revive in the emirate, with several financial institutions re-entering the market, Davis pointed out.
The index has been compiled using mortgage transaction data from financial institutions accounting to 60 percent of the mortgage market in Dubai. It demonstrates a 34 percent decline year-on-year between first quarter of 2008 and first quarter of 2009.
The property prices in the emirate had returned to the levels equivalent to that during Q2 2007, the report pointed out. When compared to other markets in the Gulf, the global crisis has had a huge impact on Dubai, mainly due to high level of integration with global economy as a regional hub, and the wide speculation in property assets before the market's peak during third quarter of 2008.
Speaking about the Q1 2009 report, the Chief Executive Officer of Colliers International, John Davis, said that the negative sentiment is a major factor contributing to decline in the index and availability of finance too has a major impact on the market. The end-users are more concerned about job security, and hence are hesitant to enter the market, despite the finances being open for them.
Looking at the brighter side of things, the index remains unaltered as in March 2009. But, it is too early to predict whether the halt in decline of the index can be sustained during the quieter summer months, Davis said.
The House Price Index takes into account the price trends achieved for completed properties, as against the properties that are still under construction. The results obtained by including the Burj Dubai development in the results, the index indicates that completed properties fell 31 percent, while the properties under construction fell 56 percent. Keeping aside the Burj Dubai, the completed projects fell 32 percent, while those under construction fell 51 percent.
Mortgage lending is beginning to revive in the emirate, with several financial institutions re-entering the market, Davis pointed out.
Labels: Dubai Real Estate, Market Trends, Mortgages
Dubai realty sector opens up productive investment opportunities
Monday, April 20, 2009
The correction in the property prices in Dubai will open up several productive investment opportunities in the sector within the next 24 months, revealed a report by Jones LangLa Salle, the real estate advisory firm.
The recent Investor Sentiment Survey carried out by the company reveal that with considerable adjustments already made in the capital and rental values already in place, during the next two years, Dubai will surely be one of the most attractive real estate investment markets in the region.
The property and construction sector in Dubai is undergoing a correction, with several large scale projects either on hold or scrapped altogether, and the prices are easing. However, developers in Dubai are considering this period as an opportunity to re-assess developments and re-focus on end-user elements, such as increased flexibility in payment plans.
The price adjustment will help Dubai immensely, as investors are attracted towards fairer values and better yields. Early signs of activity are already visible, the Survey indicates.
The government too has offered financial assistance by issuing $10bn bond. This is believed to help real estate firms immensely, and this will help in driving up investor sentiments, in a major segment of Dubai's economy. Further, the government has also pledged to continue with infrastructure spending to complete all major projects.
From a regional perspective, the Jones Lang LaSalle report points towards optimism among investors, over the prospects of Middle East Real Estate Sector, a major driver of the market.
The recent Investor Sentiment Survey carried out by the company reveal that with considerable adjustments already made in the capital and rental values already in place, during the next two years, Dubai will surely be one of the most attractive real estate investment markets in the region.
The property and construction sector in Dubai is undergoing a correction, with several large scale projects either on hold or scrapped altogether, and the prices are easing. However, developers in Dubai are considering this period as an opportunity to re-assess developments and re-focus on end-user elements, such as increased flexibility in payment plans.
The price adjustment will help Dubai immensely, as investors are attracted towards fairer values and better yields. Early signs of activity are already visible, the Survey indicates.
The government too has offered financial assistance by issuing $10bn bond. This is believed to help real estate firms immensely, and this will help in driving up investor sentiments, in a major segment of Dubai's economy. Further, the government has also pledged to continue with infrastructure spending to complete all major projects.
From a regional perspective, the Jones Lang LaSalle report points towards optimism among investors, over the prospects of Middle East Real Estate Sector, a major driver of the market.
Labels: Dubai Real Estate, Market Trends
Dubai considers new options for selling properties to Britons
Sunday, April 12, 2009
The first-ever mass auction of Dubai properties happened last week.
Earlier several Dubai properties were being purchased by investors in the UK. However, with the Pound value plunging to record-lows, mortgages slowed down, and several of the developments in the city were put on hold, traditional methods to showcase developments to Britons are no more successful.
The Managing Director of Properties Dubai, Asif Choudhary, agreed that they have stopped receiving any inquiries for properties, and hence planned a way out. Auctions are a great way for generating big business in the UK.
The Sales and Marketing Director at Hircon International, Manish Bhatia, said that for any property market to grow stronger it needs to be changed hands from someone who is financially weak to the one who is financially strong.
The off-plan properties were hardly generating sales, except for that of RAK Properties. With several developments in Dubai, being put on hold, British investors were questioning if certain projects, would ever get completed.
Although the bargaining element when buying at an auction is justified, keeping the current scenario in mind, those who listed Dubai Properties were not prepared to given them away.
According to Choudhary, there are two types of sellers in the market currently - those operating at a loss but remain financially stable, and also the overleveraged who would sell for less. But the latter is more than the former in the market.
Bhatia points out that making sales at this point does not indicate a market recovery, and emphasized that for this to happen, lending too, may have to ease.
For a recovery to happen, certain other developments will have to be considered. People may purchase at cheaper prices, but that may not be a sign of recovery. One may have to wait until the lending eases up, he said. Bhatia emphasized that the auction format is an effective strategy, and it would be good to carry out such a format in Dubai.
Choudhary agreed that the market for selling Dubai Properties to people in the UK is yet to recover, but auctions may help in maintaining interest at the movement.
Earlier several Dubai properties were being purchased by investors in the UK. However, with the Pound value plunging to record-lows, mortgages slowed down, and several of the developments in the city were put on hold, traditional methods to showcase developments to Britons are no more successful.
The Managing Director of Properties Dubai, Asif Choudhary, agreed that they have stopped receiving any inquiries for properties, and hence planned a way out. Auctions are a great way for generating big business in the UK.
The Sales and Marketing Director at Hircon International, Manish Bhatia, said that for any property market to grow stronger it needs to be changed hands from someone who is financially weak to the one who is financially strong.
The off-plan properties were hardly generating sales, except for that of RAK Properties. With several developments in Dubai, being put on hold, British investors were questioning if certain projects, would ever get completed.
Although the bargaining element when buying at an auction is justified, keeping the current scenario in mind, those who listed Dubai Properties were not prepared to given them away.
According to Choudhary, there are two types of sellers in the market currently - those operating at a loss but remain financially stable, and also the overleveraged who would sell for less. But the latter is more than the former in the market.
Bhatia points out that making sales at this point does not indicate a market recovery, and emphasized that for this to happen, lending too, may have to ease.
For a recovery to happen, certain other developments will have to be considered. People may purchase at cheaper prices, but that may not be a sign of recovery. One may have to wait until the lending eases up, he said. Bhatia emphasized that the auction format is an effective strategy, and it would be good to carry out such a format in Dubai.
Choudhary agreed that the market for selling Dubai Properties to people in the UK is yet to recover, but auctions may help in maintaining interest at the movement.
Labels: Dubai Real Estate, Latest News
Unofficial rental index by Landmark depicts 45% decline in rents
Friday, April 10, 2009
Landmark Advisory has compiled and published an unofficial list of average rents across Dubai, which will be an alternative to official rental index.
This unofficial index gives an updated scenario of the market and will be published every two months. It will also serve as a guide for landlords and tenants, apart by the official index published by the RERA (Real Estate Regulatory Authority).
RERA had confirmed that it would release an updated version of its latest rental guide in April. According to RERA, the new index, due to be released this month, will show a 10 to 15 percent decline in rental prices.
However, the index published by Landmark Advisory, shows a decline of up to 15 percent in rentals.
So far, residents who felt they were highly charged in terms of rent, used to file cases directly to the Rent Committee in Dubai Municipality. But, now the rental index may help in resolving such disputes.
But, Neil, CEO of Landmark Advisory has clarified that the index by Landmark Advisory cannot be used for settling disputes, as people would still require an official index to settle legal cases.
But, this particular index by Landmark, may act as a guide for tenants seeking for rent in various locations of Dubai, he said.
This unofficial index gives an updated scenario of the market and will be published every two months. It will also serve as a guide for landlords and tenants, apart by the official index published by the RERA (Real Estate Regulatory Authority).
RERA had confirmed that it would release an updated version of its latest rental guide in April. According to RERA, the new index, due to be released this month, will show a 10 to 15 percent decline in rental prices.
However, the index published by Landmark Advisory, shows a decline of up to 15 percent in rentals.
So far, residents who felt they were highly charged in terms of rent, used to file cases directly to the Rent Committee in Dubai Municipality. But, now the rental index may help in resolving such disputes.
But, Neil, CEO of Landmark Advisory has clarified that the index by Landmark Advisory cannot be used for settling disputes, as people would still require an official index to settle legal cases.
But, this particular index by Landmark, may act as a guide for tenants seeking for rent in various locations of Dubai, he said.
Labels: Dubai Real Estate, Rentals
RERA's updated version of rental index still uncertain
Tuesday, March 31, 2009
It is still uncertain, if Dubai's RERA would update its rental index in April this year, as was previously announced, or would just expand its current version of rental index, by including the areas left our in the original survey, reports AME Info.
During a press conference in Dubai, during the end of February this year, RERA had indicated that its rental price index would be updated and re-released early this April.
The announcement was made following the disputes that occurred after the release of the first version of Dubai rental index, which was compiled when the rents were at their peak in 2008, much before the slowdown hit the emirate. This version of the index was released in January this year, following which, there were arguments about the rates in the index not being in accordance with the post-slump market.
It has now been learnt that instead of completely updating the current index figures in April, RERA may just fill in the averages for the areas and bands, not covered in the original chart.
An official at RERA is told to have mentioned that there will be no changes to the existing figures, and RERA is only updating the areas that were not mentioned in the last index, and a new survey would be conducted this summer.
This implies that rental contracts would be measured against average figures that bear little resemblance to prevailing market rates.
The Managing Director of Better Homes, Ryan Mahoney, who spoke to AME Info, agreed about the huge drop in rentals in Dubai, and urged RERA to regularly update the index, and maintain it inline with the fast-changing market, else, people may stop referring the index.
During a press conference in Dubai, during the end of February this year, RERA had indicated that its rental price index would be updated and re-released early this April.
The announcement was made following the disputes that occurred after the release of the first version of Dubai rental index, which was compiled when the rents were at their peak in 2008, much before the slowdown hit the emirate. This version of the index was released in January this year, following which, there were arguments about the rates in the index not being in accordance with the post-slump market.
It has now been learnt that instead of completely updating the current index figures in April, RERA may just fill in the averages for the areas and bands, not covered in the original chart.
An official at RERA is told to have mentioned that there will be no changes to the existing figures, and RERA is only updating the areas that were not mentioned in the last index, and a new survey would be conducted this summer.
This implies that rental contracts would be measured against average figures that bear little resemblance to prevailing market rates.
The Managing Director of Better Homes, Ryan Mahoney, who spoke to AME Info, agreed about the huge drop in rentals in Dubai, and urged RERA to regularly update the index, and maintain it inline with the fast-changing market, else, people may stop referring the index.
Labels: Dubai Real Estate, Rentals
Dubai acts to resolve property disputes
Monday, March 30, 2009
Dubai has formed professional groups and mediation center to resolve the numerous disputes arising among investors and developers, as the property sector suffered under the impact of global economic turmoil.
The initiative, which is a joint-effort by the Dubai Land Department and Dubai's RERA, has been aimed at integrating the main parties in the property sector into a regulatory framework, under the leadership of RERA.
A mediation center was formed to resolve the disputes in a quicker and efficient manner, away from the Property Court. At present about 500 or more such cases are said to be awaiting the court orders. The center has resolved 95 cases over the past month.
This idea has been welcomed by the industry so far. Next month, property investors, developers, evaluators and brokers will form groups within RERA. These committees will meet on a regular basis to review and develop a regulatory strategy to create plans and manage conflicts in the property sector.
Off-late, groups of investors have been filing petitions to developers regarding cancelled projects. Even last week, hundreds of investors appealed to Nakheel's Dubai sales center, urging the developer to reschedule its payment plans for villas on Palm Jebel Ali, due to delays.
Emaar has revealed its plans to put on hold three of its projects, following a petition from the Emaar Investors Group. Both individuals and homeowners' associations form a part of the new investors' community within RERA.
This is the latest among the measures taken by the Government to increase market confidence. Last month RERA had announced that the agency would begin publishing monthly progress reports on each of the 695 projects with Escrow Accounts. The progress on the developments would be published online with photographs about progress in construction.
The initiative, which is a joint-effort by the Dubai Land Department and Dubai's RERA, has been aimed at integrating the main parties in the property sector into a regulatory framework, under the leadership of RERA.
A mediation center was formed to resolve the disputes in a quicker and efficient manner, away from the Property Court. At present about 500 or more such cases are said to be awaiting the court orders. The center has resolved 95 cases over the past month.
This idea has been welcomed by the industry so far. Next month, property investors, developers, evaluators and brokers will form groups within RERA. These committees will meet on a regular basis to review and develop a regulatory strategy to create plans and manage conflicts in the property sector.
Off-late, groups of investors have been filing petitions to developers regarding cancelled projects. Even last week, hundreds of investors appealed to Nakheel's Dubai sales center, urging the developer to reschedule its payment plans for villas on Palm Jebel Ali, due to delays.
Emaar has revealed its plans to put on hold three of its projects, following a petition from the Emaar Investors Group. Both individuals and homeowners' associations form a part of the new investors' community within RERA.
This is the latest among the measures taken by the Government to increase market confidence. Last month RERA had announced that the agency would begin publishing monthly progress reports on each of the 695 projects with Escrow Accounts. The progress on the developments would be published online with photographs about progress in construction.
Labels: Dubai Real Estate
Property hotspots in Dubai for 2009
Tuesday, March 17, 2009
A leading property portal in the UAE, propertyfinder .ae, today released its findings, which reveals the top locations in Dubai for rent and purchase during the current year.
According to the findings, both buyers and renters are moving out of traditional residential hubs to areas such as the Jumeirah Lake Towers, The Springs and Discovery Gardens, with new communities high on priority list for both buyers and renters.
The findings were based on approximately 500,000 unique page visits to the website during the month of Feb'09. This highlights the current activity in the Dubai real estate market, despite the slowdown.
The Head of Marketing at propertyfinder.ae, Marcello Sambartolo, when speaking about the survey results, mentioned that the survey brought out some interesting statistics, wherein a real transition in rental interest towards new residential areas such as Jumeirah Lake Towers and Discovery Gardens have been observed, where the rents are more competitive. The data also reveals that end-users are still looking to invest in Dubai properties, which is now offering opportunities to capitalize on the recent drop in housing prices.
This is the right opportunity to locate good property investments. The research would help in locating the best deals and being aware about the new communities coming on stream, Sambartolo said.
The survey is generated out of user-generated figures on the property portal from 1st to the 28th February 2009. The figures are based on 644,148 page views and 492,838 unique page views on the website. The figures have been verified by Market Intelligence, Nielsen Site Census and Google Analytics.
The hot zones as revealed by the website are as follows:
According to the findings, both buyers and renters are moving out of traditional residential hubs to areas such as the Jumeirah Lake Towers, The Springs and Discovery Gardens, with new communities high on priority list for both buyers and renters.
The findings were based on approximately 500,000 unique page visits to the website during the month of Feb'09. This highlights the current activity in the Dubai real estate market, despite the slowdown.
The Head of Marketing at propertyfinder.ae, Marcello Sambartolo, when speaking about the survey results, mentioned that the survey brought out some interesting statistics, wherein a real transition in rental interest towards new residential areas such as Jumeirah Lake Towers and Discovery Gardens have been observed, where the rents are more competitive. The data also reveals that end-users are still looking to invest in Dubai properties, which is now offering opportunities to capitalize on the recent drop in housing prices.
This is the right opportunity to locate good property investments. The research would help in locating the best deals and being aware about the new communities coming on stream, Sambartolo said.
The survey is generated out of user-generated figures on the property portal from 1st to the 28th February 2009. The figures are based on 644,148 page views and 492,838 unique page views on the website. The figures have been verified by Market Intelligence, Nielsen Site Census and Google Analytics.
The hot zones as revealed by the website are as follows:
Labels: Dubai Real Estate, Latest News, Market Trends
Dubai property prices drop to mid-income levels
Saturday, March 14, 2009
According to experts, mortgages in Dubai would be easier to reach, with the property prices likely to drop to mid-income levels. Applications from potential buyers seeking mortgages have dropped considerably in recent months.
Property prices are plummeting throughout Dubai, thereby bringing about a ray of hope for those that were earlier considered out-priced. But the huge mortgage requirements and large deposits are keeping them away from easy reach.
The Managing Director of Almas Capital, Barmak Besharaty, when speaking during a Cityscape networking forum, yesterday, mentioned that Dubai would surely be a better place to live in, once the families can afford to buy or rent. This is likely to happen when the real estate assets align with the mid-income margin in the country.
Until a few months back, property in Dubai was meant only for the wealthy. Several developers were offering luxury lifestyle, which were out of reach for majority of the common population. Developers were pushing up prices of their properties, to keep up with the speculators and market forces, aiming to make money.
However, at present, one can get a decent mortgage in Dubai, if they are free of car loans and personal loans, and have atleast Dh.300,000 in a bank account, as a handy deposit, and ideally, draw a huge salary, said Shohail Zubairi, Chief Executive of Dar Al Sharia, the Legal and Financial Consultancy.
However, the average mid-income person already has atleast one loan, and does not have several thousands of dirhams as balance in their bank account. Moreover the current mortgage rates are not too attractive either, he points out.
However, in the current situation, even the developers need not bother about building new affordably housing developments aimed at mid-income bracket, as several developments in Dubai that had earlier been branded as luxury developments, now fall within the mid-income bracket.
Property prices are plummeting throughout Dubai, thereby bringing about a ray of hope for those that were earlier considered out-priced. But the huge mortgage requirements and large deposits are keeping them away from easy reach.
The Managing Director of Almas Capital, Barmak Besharaty, when speaking during a Cityscape networking forum, yesterday, mentioned that Dubai would surely be a better place to live in, once the families can afford to buy or rent. This is likely to happen when the real estate assets align with the mid-income margin in the country.
Until a few months back, property in Dubai was meant only for the wealthy. Several developers were offering luxury lifestyle, which were out of reach for majority of the common population. Developers were pushing up prices of their properties, to keep up with the speculators and market forces, aiming to make money.
However, at present, one can get a decent mortgage in Dubai, if they are free of car loans and personal loans, and have atleast Dh.300,000 in a bank account, as a handy deposit, and ideally, draw a huge salary, said Shohail Zubairi, Chief Executive of Dar Al Sharia, the Legal and Financial Consultancy.
However, the average mid-income person already has atleast one loan, and does not have several thousands of dirhams as balance in their bank account. Moreover the current mortgage rates are not too attractive either, he points out.
However, in the current situation, even the developers need not bother about building new affordably housing developments aimed at mid-income bracket, as several developments in Dubai that had earlier been branded as luxury developments, now fall within the mid-income bracket.
Labels: Dubai Real Estate, Mortgages, Property Prices
Funds on way to help Dubai companies; property firms on priority list
The companies in Dubai can expect funds within two weeks time, out of the US$10bn (Dh.36.73bn) which the Dubai Government borrowed from the Central Bank, to help ease the cash squeeze situation in the emirate.
This was revealed by Nasser al Shaikh, the Head of Dubai Finance Department, when speaking during a conference today. The funds, which form a part of the $20bn bond programme introduced last month to help Dubai in meeting the short-term requirements for funding, helped calm down investors, who were worried that the companies may face hurdles repaying debts this year, as the banks were reluctant to refinance loans due to the global credit crunch.
The emirate is yet to decide on how to administer the funds on a case-by-case basis, although Al Shaikh confirmed that the property sector companies would be given special priority. The Economist at Standard Chartered, Shady Shaher, said that although firms outside property sector too, would be eligible for funds, he expects majority of the money to flow into property companies, particularly, those that are partially-owned by Dubai Government.
Several large Dubai-based groups have already applied for funds. Al Shaikh said that the cash flow to the companies, affected by global crunch, would be given based on their requirements.
The Dubai Government is believed to set up a special fund through the Department of Economic Development, to lend a portion of the $10bn to small and medium-sized companies that require cash.
Speaking about the real estate market in Dubai, Al Shaikh said that the finance department would keep bringing out measures to stimulate the sector. The focus in the present situation should be on settling the disputes between buyers and sellers, he pointed out.
As for the current talks between Tamweel and Amlak, the two largest mortgage companies of UAE, Al Shaikh, who is also the Chairman of Amlak, said that the management of both companies were holding discussions about the same with the Ministerial Committee. Although it was thought that the companies were planning a merger, the statement from government officials earlier this week, ruled out the possibility and suggested other options.
However, al Shaikh said that more companies are also planning consolidation, amidst slowdown, although a potential consolidation should make sense to shareholders and to the economy at large.
Al Shaikh also did not deny the likelihood for consolidation between companies in Dubai and Abu Dhabi, either.
This was revealed by Nasser al Shaikh, the Head of Dubai Finance Department, when speaking during a conference today. The funds, which form a part of the $20bn bond programme introduced last month to help Dubai in meeting the short-term requirements for funding, helped calm down investors, who were worried that the companies may face hurdles repaying debts this year, as the banks were reluctant to refinance loans due to the global credit crunch.
The emirate is yet to decide on how to administer the funds on a case-by-case basis, although Al Shaikh confirmed that the property sector companies would be given special priority. The Economist at Standard Chartered, Shady Shaher, said that although firms outside property sector too, would be eligible for funds, he expects majority of the money to flow into property companies, particularly, those that are partially-owned by Dubai Government.
Several large Dubai-based groups have already applied for funds. Al Shaikh said that the cash flow to the companies, affected by global crunch, would be given based on their requirements.
The Dubai Government is believed to set up a special fund through the Department of Economic Development, to lend a portion of the $10bn to small and medium-sized companies that require cash.
Speaking about the real estate market in Dubai, Al Shaikh said that the finance department would keep bringing out measures to stimulate the sector. The focus in the present situation should be on settling the disputes between buyers and sellers, he pointed out.
As for the current talks between Tamweel and Amlak, the two largest mortgage companies of UAE, Al Shaikh, who is also the Chairman of Amlak, said that the management of both companies were holding discussions about the same with the Ministerial Committee. Although it was thought that the companies were planning a merger, the statement from government officials earlier this week, ruled out the possibility and suggested other options.
However, al Shaikh said that more companies are also planning consolidation, amidst slowdown, although a potential consolidation should make sense to shareholders and to the economy at large.
Al Shaikh also did not deny the likelihood for consolidation between companies in Dubai and Abu Dhabi, either.
Labels: Dubai Real Estate, Latest News
Dubai likely to house 90,000 new housing units in two years
Thursday, March 12, 2009
Dubai property market will see the advent of about 90,000 new housing units over the next two years, despite the global economic turmoil.
Nearly 32,000 new housing units were completed in 2008, touching the total number of residential stock in Dubai to 253,000.
The Jones Lang LaSalle Report, however, mentions that construction delays and project cancellations will reduce the total announced residential supply by more than 50 percent. About more than half of the announced residential and commercial projects due for completion, during the two years, have been halted or cancelled, due to lack of available funding and ease of demand.
Even top developers, including Nakheel and Meraas have either rescheduled or cancelled few of their major projects. Since the last quarter of 2008, there has been a drop in prices and rentals, by up to 50 percent, depending on the area.
Prices are expected to plummet further, for residential properties, throughout the year, hitting the bottom at 2010, said Craig Plumb. In the meanwhile, the Managing Director of Memon Investments, Ahmad Shaikhani, had mentioned that he expects the UAE property sector to spring back to normalcy within next 8 to 12 months, due to the fall in construction costs.
The report agrees for the need for increased financing options, and the need for implementation of few 'radical measures' by the government, such as removing the link between residency status and employment, clarification of law regarding residency for expatriate buyers of housing units. Such measure may be required to help the market emerge stronger.
Several people are opting to rent out, rather than to buy, as the people are hesitant to buy in a declining market. "It is like catching a falling knife. Nobody knows when the market will stabilize, so it is hard to predict the bottom," Plumb concludes.
Nearly 32,000 new housing units were completed in 2008, touching the total number of residential stock in Dubai to 253,000.
The Jones Lang LaSalle Report, however, mentions that construction delays and project cancellations will reduce the total announced residential supply by more than 50 percent. About more than half of the announced residential and commercial projects due for completion, during the two years, have been halted or cancelled, due to lack of available funding and ease of demand.
Even top developers, including Nakheel and Meraas have either rescheduled or cancelled few of their major projects. Since the last quarter of 2008, there has been a drop in prices and rentals, by up to 50 percent, depending on the area.
Prices are expected to plummet further, for residential properties, throughout the year, hitting the bottom at 2010, said Craig Plumb. In the meanwhile, the Managing Director of Memon Investments, Ahmad Shaikhani, had mentioned that he expects the UAE property sector to spring back to normalcy within next 8 to 12 months, due to the fall in construction costs.
The report agrees for the need for increased financing options, and the need for implementation of few 'radical measures' by the government, such as removing the link between residency status and employment, clarification of law regarding residency for expatriate buyers of housing units. Such measure may be required to help the market emerge stronger.
Several people are opting to rent out, rather than to buy, as the people are hesitant to buy in a declining market. "It is like catching a falling knife. Nobody knows when the market will stabilize, so it is hard to predict the bottom," Plumb concludes.
Labels: Dubai Real Estate, Residential
Supply of Dubai residential units to dip 20% in 2009
Friday, March 06, 2009
About 20% of residential units may not enter the market in 2009, due to the current market conditions, say Dubai Land Department officials.
In 2008, Dubai market witnessed entry of 29,319 units this year, and another 31,003 units are likely to hit the market this year. But, in order to balance the supply situation amidst the current financial situation, this number is likely to drop by 20%.
Approximately 70% of housing supply in Dubai is under the control of three government-supported developers - Nakheel, Dubai Properties and Emaar.
There is also a 40 percent decrease in the 43,880 units projected to hit the market in 2010. There is also a 45% drop in transactional value, says Assistant Director General of Dubai Land Department, Mohammad Sultan Thani.
Currently a total of 875 projects are registered with RERA, out of which, 685 projects have escrow accounts, while the rest 180 units are either more than 60% complete or have total bank guarantees. The numbers of developers too have reduced to 427 from 800.
Among the projects announced, RERA predicts that 25% of the projects may have a delayed start, or will be put on hold due to tight market conditions. Another 25 percent of the projects may see a merger of companies, while about a quarter of the projects may be rescheduled. The rest 25 percent of the projects will see a timely completion by 2009 or 2010.
According to bin Galita, controlling the supply may be a good sign, as it is easier to manage, and will render the market only the number of units required.
So far, only two projects have been cancelled. Another 27 projects may have to be cancelled, says Bin Galitta.
Beginning next week, RERA will begin a monthly progress report of various construction projects in Dubai on their website. This monthly report will be for every project with escrow account, under progress in Dubai.
This initiative is hoped to generate confidence in investors about the comfort and knowledge they require about their investments, and help in further preventing investor-developer disputes.
In 2008, Dubai market witnessed entry of 29,319 units this year, and another 31,003 units are likely to hit the market this year. But, in order to balance the supply situation amidst the current financial situation, this number is likely to drop by 20%.
Approximately 70% of housing supply in Dubai is under the control of three government-supported developers - Nakheel, Dubai Properties and Emaar.
There is also a 40 percent decrease in the 43,880 units projected to hit the market in 2010. There is also a 45% drop in transactional value, says Assistant Director General of Dubai Land Department, Mohammad Sultan Thani.
Currently a total of 875 projects are registered with RERA, out of which, 685 projects have escrow accounts, while the rest 180 units are either more than 60% complete or have total bank guarantees. The numbers of developers too have reduced to 427 from 800.
Among the projects announced, RERA predicts that 25% of the projects may have a delayed start, or will be put on hold due to tight market conditions. Another 25 percent of the projects may see a merger of companies, while about a quarter of the projects may be rescheduled. The rest 25 percent of the projects will see a timely completion by 2009 or 2010.
According to bin Galita, controlling the supply may be a good sign, as it is easier to manage, and will render the market only the number of units required.
So far, only two projects have been cancelled. Another 27 projects may have to be cancelled, says Bin Galitta.
Beginning next week, RERA will begin a monthly progress report of various construction projects in Dubai on their website. This monthly report will be for every project with escrow account, under progress in Dubai.
This initiative is hoped to generate confidence in investors about the comfort and knowledge they require about their investments, and help in further preventing investor-developer disputes.
Labels: Dubai Real Estate, Residential
New rental index likely in April: RERA
Monday, March 02, 2009
Dubai's RERA (Real Estate Regulatory Authority) will announce its new rental index in April, aiming to bring out a more realistic market.
This decision by RERA follows the huge protests over rental values that were included in the original index published by the Authority last month.
The index is more like a guide, intended to help landlords and tenants in Dubai, with approximate rent levels based on various areas in Dubai. The index is actually scheduled to be republished every six months.
The Chief Executive of RERA, Marwan Bin Galita, said that the rents in the emirate have already begun to plunge, and depending on the location, rents could drop from 10 or 20 percent to nearly 50 percent this year, based on the location.
However, owing to the global economic slump, nearly 20 percent of the 31,000 or more residential units may not come on stream this year. A 40 percent decrease in the total number of units projected for 2010, is also likely.
The first rental index by RERA was released in January this year, which caused resentment among tenants, who felt that the rates quoted were based on last year's rents, when rentals were at their peak, before the onset of financial crisis.
This decision by RERA follows the huge protests over rental values that were included in the original index published by the Authority last month.
The index is more like a guide, intended to help landlords and tenants in Dubai, with approximate rent levels based on various areas in Dubai. The index is actually scheduled to be republished every six months.
The Chief Executive of RERA, Marwan Bin Galita, said that the rents in the emirate have already begun to plunge, and depending on the location, rents could drop from 10 or 20 percent to nearly 50 percent this year, based on the location.
However, owing to the global economic slump, nearly 20 percent of the 31,000 or more residential units may not come on stream this year. A 40 percent decrease in the total number of units projected for 2010, is also likely.
The first rental index by RERA was released in January this year, which caused resentment among tenants, who felt that the rates quoted were based on last year's rents, when rentals were at their peak, before the onset of financial crisis.
Labels: Dubai Real Estate, Property Law
Dubai, still the leading player in regional property sector
Thursday, February 26, 2009
Property projects in the GCC (Gulf Co-operation Council), particularly in Dubai, are still being actively pursued, despite the global economic crunch, reports the leading property portal REIDIN.com, which tracks real estate transactions in the GCC.
The portal said that Dubai is still the leading player in the regional property market, with Dh.5bn worth of investments flowing into the emirate in 2008.
About 5.8 percent of worldwide land sales transactions were accounted for by Dubai. Dubai was also ranked the fourth highest in global land sales rankings in 2008. Majority of the GCC investment into the emirate came from Saudi Arabia (Dh.2bn), followed by Dh.1bn from Kuwait, Dh.818mn from Oman, Dh.615mn from Bahrain, and Dh.117mn from Qatar.
The portal mentioned that there is a strong interest in Dubai property sector, despite the projected slump in UAE economy for this year.
The CEO of REIDIN.com, Ahmet Kayhan, said that the property sector is facing a challenging time confronted with issues such as liquidity, threatening investor confidence. However, the trends reveal that the Dubai property sector will still be the busiest with investments and transactions remaining comparatively higher.
According to Kahyan, despite the dim outlook on UAE economy, Dubai property sector will continue to witness constant transactions, and the government will continue its efforts to soften the impact of financial crisis by offering liquidity.
The portal said that Dubai is still the leading player in the regional property market, with Dh.5bn worth of investments flowing into the emirate in 2008.
About 5.8 percent of worldwide land sales transactions were accounted for by Dubai. Dubai was also ranked the fourth highest in global land sales rankings in 2008. Majority of the GCC investment into the emirate came from Saudi Arabia (Dh.2bn), followed by Dh.1bn from Kuwait, Dh.818mn from Oman, Dh.615mn from Bahrain, and Dh.117mn from Qatar.
The portal mentioned that there is a strong interest in Dubai property sector, despite the projected slump in UAE economy for this year.
The CEO of REIDIN.com, Ahmet Kayhan, said that the property sector is facing a challenging time confronted with issues such as liquidity, threatening investor confidence. However, the trends reveal that the Dubai property sector will still be the busiest with investments and transactions remaining comparatively higher.
According to Kahyan, despite the dim outlook on UAE economy, Dubai property sector will continue to witness constant transactions, and the government will continue its efforts to soften the impact of financial crisis by offering liquidity.
Labels: Dubai Real Estate
Dubai property market re-gaining buyer-interest
Tuesday, February 24, 2009
According to property agents in Dubai, there has been considerable buyer interest for completed properties during recent weeks. Increased transactions are being witnessed with banks regaining confidence, and beginning to approve mortgages.
Past two months, although there hasn't been any viewing, during the past ten days, viewings have picked up considerably, and there is more consumer interest returning to the market, says Ronald Hinchey, Resident Partner, Cluttons.
Another Independent Property Consultants, Sherwoods, says that those planning to buy property now live in the property. With prices to the decline, people are considering affordable homes, says Iseeb Rehman, the Managing Director.
In the meanwhile, Owners are looking out to sell their properties, amidst growing concern over fall in prices, the agents report. Rehman mentioned that Sherwoods made five sales during the past week, in major sought-after areas such as Discovery Gardens, Dubai Marina and Jumeirah Village.
Rehman also mentioned that a growing interest is seen in office space, with more property coming on to the rental market, as owners seek stable revenue stream.
Property Advisor at Choueri Real Estate, Rima Moukarim, mentioned that owners' who have been holding on to property, anticipating a price recovery, can now look for a quick sale. He confirmed that the market is witnessing more sales and transactions.
The Assistant Director General of the Department, Mohammed Thani, mentioned that about Dh.2bn worth of mortgages have been registered with the Dubai Land Department this year. Moukarim said that banks seem more confident about lending. Also, with the banks resuming property lending, it is hoped that they would adopt a less stringent approval process.
In the meanwhile, the property experts have expressed their opinion that the market should offer incentives to lure back buyers and instill confidence by offering permanent residence visas to freehold home-owners.
When people purchase freehold property, it is the duty of the Government to offer permanent residence for the rest of their lives, as long as they own that property, says Hinchey.
Past two months, although there hasn't been any viewing, during the past ten days, viewings have picked up considerably, and there is more consumer interest returning to the market, says Ronald Hinchey, Resident Partner, Cluttons.
Another Independent Property Consultants, Sherwoods, says that those planning to buy property now live in the property. With prices to the decline, people are considering affordable homes, says Iseeb Rehman, the Managing Director.
In the meanwhile, Owners are looking out to sell their properties, amidst growing concern over fall in prices, the agents report. Rehman mentioned that Sherwoods made five sales during the past week, in major sought-after areas such as Discovery Gardens, Dubai Marina and Jumeirah Village.
Rehman also mentioned that a growing interest is seen in office space, with more property coming on to the rental market, as owners seek stable revenue stream.
Property Advisor at Choueri Real Estate, Rima Moukarim, mentioned that owners' who have been holding on to property, anticipating a price recovery, can now look for a quick sale. He confirmed that the market is witnessing more sales and transactions.
The Assistant Director General of the Department, Mohammed Thani, mentioned that about Dh.2bn worth of mortgages have been registered with the Dubai Land Department this year. Moukarim said that banks seem more confident about lending. Also, with the banks resuming property lending, it is hoped that they would adopt a less stringent approval process.
In the meanwhile, the property experts have expressed their opinion that the market should offer incentives to lure back buyers and instill confidence by offering permanent residence visas to freehold home-owners.
When people purchase freehold property, it is the duty of the Government to offer permanent residence for the rest of their lives, as long as they own that property, says Hinchey.
Labels: Dubai Real Estate, Market Trends
Indian nationals top list of villa-owners in Dubai
Monday, February 09, 2009
Majority of the villas in Dubai are occupied by Indian nationals, while Britons form majority of apartment owners in Dubai. This is as per the statistics revealed by the Dubai Land Department (DLD).
Out of the total 13,774 apartments registered with the Land Department between the period 1963 to 2008, Britons own 2755 units, which constitute 20% of the units. This is followed by Indians and Pakistanis sharing the second position with 14% ownership. The third in line are the Iranians with 11% ownership.
Indians are the top-most in the list of villa buyers, with 21% ownership, which constitute 932 villas out of 4436 villas registered by DLD. This is followed by Britons with 17% ownership, and 12% ownership by Pakistanis.
UAE nationals hold ownership of only 4% of apartments and 6% villas in the emirate, reveal statistics.
However, when considering the total number of landowners in Dubai, 73% are UAE nationals, while Indians and Britons own only 3% and 2% of the land in the emirate.
Out of the total 13,774 apartments registered with the Land Department between the period 1963 to 2008, Britons own 2755 units, which constitute 20% of the units. This is followed by Indians and Pakistanis sharing the second position with 14% ownership. The third in line are the Iranians with 11% ownership.
Indians are the top-most in the list of villa buyers, with 21% ownership, which constitute 932 villas out of 4436 villas registered by DLD. This is followed by Britons with 17% ownership, and 12% ownership by Pakistanis.
UAE nationals hold ownership of only 4% of apartments and 6% villas in the emirate, reveal statistics.
However, when considering the total number of landowners in Dubai, 73% are UAE nationals, while Indians and Britons own only 3% and 2% of the land in the emirate.
Labels: Apartments, Dubai Real Estate, Real Estate News
Rental Index will be updated to reflect current market conditions
Saturday, February 07, 2009
The new rental index is likely to be updated in three months time, in accordance with the current market conditions, revealed a top official in Dubai's RERA (Real Estate Regulatory Authority).
The index, which is more of a guide to landlords and tenants in Dubai, was scheduled to be re-published every six months.
The Chief Executive of RERA, Marwan bin Ghalita, who spoke to the media on Thursday, mentioned that the new index is likely to be published in two to three months time. This initiative comes, when rents in the city have begun to fall dramatically from its peak during mid-2008. The Dubai rental index which has been released now is based on the figures during that period.
Ghalita said that despite the drop in rents, Dubai still offers good rental yields of up to 10% of the value of property, in comparison to 2-3 percent in other countries.
The index, which is more of a guide to landlords and tenants in Dubai, was scheduled to be re-published every six months.
The Chief Executive of RERA, Marwan bin Ghalita, who spoke to the media on Thursday, mentioned that the new index is likely to be published in two to three months time. This initiative comes, when rents in the city have begun to fall dramatically from its peak during mid-2008. The Dubai rental index which has been released now is based on the figures during that period.
Ghalita said that despite the drop in rents, Dubai still offers good rental yields of up to 10% of the value of property, in comparison to 2-3 percent in other countries.
Labels: Dubai Real Estate, Property Law, Rentals
Omniyat assures completion of Dubai projects
Thursday, February 05, 2009
Omniyat Properties, the leading Dubai-based property developer, announced that it is focus this year would be on completing the projects launched, rather than considering an expansion outside the emirate.
The Chief Executive of the Company, Peter Walichnowski, said that although it is the long-term strategy of the company to go international, with the current happenings in the world, this is probably the wrong time to do it.
"At present we intend to focus on the nine projects that we have in Dubai, and in launching our asset management division," he said.
The parent company of the private developer, Omniyat Holdings, has launched the Omniyat Asset Management team this week, to diversify its income and distinguish itself from its competitors during the times of economic turmoil.
Omniyat has nine projects in Dubai, worth Dh.13.5bn, and is progressing as scheduled, towards completion of these projects, during the second quarter of this year. Additional six projects are in the design phase, "for some time to come", said Mehdi Amjad, the Executive Chairman of the firm.
According to the new plan by Omniyat, residents will be given the option to choose between the Omniyat Asset Management or another company for maintenance of the building. Walichnowski assured that Omniyat would be transparent about expenses and make decisions together with Home Owners' Associations.
Dubai has seen the advent of several strata and property management companies, including joint venture with National Bonds Corporation called BCS - Strata Management Services and Horizon Property Management.
Omniyat has a portfolio worth Dh.28bn. The company shed 69 jobs in its sales and marketing division during November last year.
The Chief Executive of the Company, Peter Walichnowski, said that although it is the long-term strategy of the company to go international, with the current happenings in the world, this is probably the wrong time to do it.
"At present we intend to focus on the nine projects that we have in Dubai, and in launching our asset management division," he said.
The parent company of the private developer, Omniyat Holdings, has launched the Omniyat Asset Management team this week, to diversify its income and distinguish itself from its competitors during the times of economic turmoil.
Omniyat has nine projects in Dubai, worth Dh.13.5bn, and is progressing as scheduled, towards completion of these projects, during the second quarter of this year. Additional six projects are in the design phase, "for some time to come", said Mehdi Amjad, the Executive Chairman of the firm.
According to the new plan by Omniyat, residents will be given the option to choose between the Omniyat Asset Management or another company for maintenance of the building. Walichnowski assured that Omniyat would be transparent about expenses and make decisions together with Home Owners' Associations.
Dubai has seen the advent of several strata and property management companies, including joint venture with National Bonds Corporation called BCS - Strata Management Services and Horizon Property Management.
Omniyat has a portfolio worth Dh.28bn. The company shed 69 jobs in its sales and marketing division during November last year.
Labels: Dubai Real Estate, Omniyat
Dubai Government steps-in to curb cancellation of real estate projects
Thursday, January 29, 2009
To prevent further cancellations of property projects and to motivate developers to extend payment plans, so as to keep the economy floating, the Dubai Government has stepped in, says legal officials at the Land Department.
A Senior Legal Adviser at the Dubai Land Department, Emad Eldin Farouq, said that the Government is trying to stop the panic.
The RERA (Real Estate Regulatory Authority) and the Land Department will have to give their final approval before the developer could cancel any contracts for all properties purchased after 31st August 2008, it has been confirmed.
31st August 2008 was the date, when the regulation giving authorities opportunity for increased involvement in property sector, was introduced. The authorities, therefore, have better control over the cancellations process and are able to broker agreements between buyers and developers.
As for purchases prior to 31st August, the parties concerned must abide by the contract and authorities will not have much power to mediate in a contract dispute.
The Land Department had also passed a regulation in November, wherein the numbers of cancellations were reduced, based on emergency reinterpretation of Article 11 of Law 13, which stipulates how much an investor would stand to lose on termination or cancellation of their contract.
As per the interpretation, the developer would keep 30 percent of the property value and 30 percent on any payments made after that. According to Land Department officials, such a change was required to avoid a property crash.
The authorities are also in the process of preparing regulations that change the manner in which property is being developed in Dubai, to prevent the sector from overheating in future. The regulations expected to be announced in coming weeks would require developers to enter into payment plans for buyers apart from construction milestones.
In the other regulation, expected to follow the first one, developers should have completed 20 percent of their building prior to announcement of sales. This will help prevent developers from focusing on sales, before making major equity investment in the project, the situation prevalent in the market for past two years.
A Senior Legal Adviser at the Dubai Land Department, Emad Eldin Farouq, said that the Government is trying to stop the panic.
The RERA (Real Estate Regulatory Authority) and the Land Department will have to give their final approval before the developer could cancel any contracts for all properties purchased after 31st August 2008, it has been confirmed.
31st August 2008 was the date, when the regulation giving authorities opportunity for increased involvement in property sector, was introduced. The authorities, therefore, have better control over the cancellations process and are able to broker agreements between buyers and developers.
As for purchases prior to 31st August, the parties concerned must abide by the contract and authorities will not have much power to mediate in a contract dispute.
The Land Department had also passed a regulation in November, wherein the numbers of cancellations were reduced, based on emergency reinterpretation of Article 11 of Law 13, which stipulates how much an investor would stand to lose on termination or cancellation of their contract.
As per the interpretation, the developer would keep 30 percent of the property value and 30 percent on any payments made after that. According to Land Department officials, such a change was required to avoid a property crash.
The authorities are also in the process of preparing regulations that change the manner in which property is being developed in Dubai, to prevent the sector from overheating in future. The regulations expected to be announced in coming weeks would require developers to enter into payment plans for buyers apart from construction milestones.
In the other regulation, expected to follow the first one, developers should have completed 20 percent of their building prior to announcement of sales. This will help prevent developers from focusing on sales, before making major equity investment in the project, the situation prevalent in the market for past two years.
Labels: Dubai Real Estate, Property Law
Dubai property prices to reach lowest levels by later-half of this year
Monday, January 26, 2009
According to analysts in Dubai, property prices will hit the lowest during the second half of this year, while the distress sale subsides and layoffs in property and financial sectors will continue.
During the last four months, property prices in Dubai have been pushed down by homeowners and speculators, who are struggling to make their payment instalments, further pressurizing the price index.
The brokers and analysts however, did not comment or predict how far the prices would drop. A Dubai-based property analyst said that it would all depend on the number of subsequent layoffs and fire sales, and the manner in which developers would restrict supply to spur demand.
A Property Analyst with Shuaa Capital, Roy Cherry, said that the market is largely being driven by panic, mainly due to lack of transparency and information, which is preventing people from making a good assess of the market situation, and is stopping them from facing economic recession with confidence.
The government, from its end, however, is continuing to take measures to revitalize the mortgage market.
The Director, Investment Bank, Arqaam Capital, Ali Khan, said that prices are likely to hit the bottom during the second half of this year. However, a gradual return of liquidity in the market is required, and layoffs need to subside, for the investor confidence to return in the market, apart from resurrection of visa guarantee.
Fire sales are already happening in the market and prices have dropped more than 50 percent in few areas such as Downtown Dubai and Palm Jumeirah, compared to their peak between June and September last year.
"Dubai has already been three to four months into fall, and we should expect stability to return by second half of the year, although, this does not imply that prices will recover this year," Khan said.
Dubai has been witnessing job redundancies and cancellation of projects, due to factors such as liquidity pressures and lack of funding. The investors have therefore begun to redeem whatever best they can from their investments to cut losses.
Although the Central Bank has deposited capital into the financial system, and has introduced a swap facility to raise funds and cut down interest rates, hoping to ease lending conditions. The market remains tight, indicated a note from Standard Chartered Bank.
Government officials are trying to control the number of units arriving at the market, to boost demand. According to Khan, the fall in prices would be drastic for properties that have been already delivered to investors, and will be slightly less for those under construction or for those that have been delayed.
During the last four months, property prices in Dubai have been pushed down by homeowners and speculators, who are struggling to make their payment instalments, further pressurizing the price index.
The brokers and analysts however, did not comment or predict how far the prices would drop. A Dubai-based property analyst said that it would all depend on the number of subsequent layoffs and fire sales, and the manner in which developers would restrict supply to spur demand.
A Property Analyst with Shuaa Capital, Roy Cherry, said that the market is largely being driven by panic, mainly due to lack of transparency and information, which is preventing people from making a good assess of the market situation, and is stopping them from facing economic recession with confidence.
The government, from its end, however, is continuing to take measures to revitalize the mortgage market.
The Director, Investment Bank, Arqaam Capital, Ali Khan, said that prices are likely to hit the bottom during the second half of this year. However, a gradual return of liquidity in the market is required, and layoffs need to subside, for the investor confidence to return in the market, apart from resurrection of visa guarantee.
Fire sales are already happening in the market and prices have dropped more than 50 percent in few areas such as Downtown Dubai and Palm Jumeirah, compared to their peak between June and September last year.
"Dubai has already been three to four months into fall, and we should expect stability to return by second half of the year, although, this does not imply that prices will recover this year," Khan said.
Dubai has been witnessing job redundancies and cancellation of projects, due to factors such as liquidity pressures and lack of funding. The investors have therefore begun to redeem whatever best they can from their investments to cut losses.
Although the Central Bank has deposited capital into the financial system, and has introduced a swap facility to raise funds and cut down interest rates, hoping to ease lending conditions. The market remains tight, indicated a note from Standard Chartered Bank.
Government officials are trying to control the number of units arriving at the market, to boost demand. According to Khan, the fall in prices would be drastic for properties that have been already delivered to investors, and will be slightly less for those under construction or for those that have been delayed.
Labels: Dubai Real Estate, Market Trends, Property Prices
Dubai property prices slump 23%: HSBC
Saturday, January 24, 2009
According to a new report by HSBC, property prices in Dubai have dropped 23% last month. For the first time, the survey measured the actual prices at which properties were purchased and sold.
The HSBC report for the last quarter of 2008 showed a 23% decline in property prices in Dubai, with villas showing considerable decrease in prices than apartments.
The once-booming property sector of the emirate has slowed down, owing to global economic turmoil, with the plunging prices and developers scaling back on their projects, and rising job layoffs.
Average prices for villas fell by 30 percent from their peak in September, but went up 33% year-on-year, while prices for apartments dropped 20% from last September, but grew 16% year-on-year.
The figures for December 2008 also indicate a drop of 23% from the peak in September 2008.
Transaction volumes fell from November 2008, but maintained healthy levels. The advertised rentals however, continued to increase 9% month-on-month, but HSBC expects rents to soften further with more units being converted from sale to lease.
The prices of properties in Dubai could drop by as much as 60% this year, from their peaks last year, Shuaa Capital predicts.
The latest report by Asteco, however, confirms that rental rates for villas and apartments have been levelling off throughout 2008 with an average growth rate of 4% for apartments and 8% for villas.
The HSBC report for the last quarter of 2008 showed a 23% decline in property prices in Dubai, with villas showing considerable decrease in prices than apartments.
The once-booming property sector of the emirate has slowed down, owing to global economic turmoil, with the plunging prices and developers scaling back on their projects, and rising job layoffs.
Average prices for villas fell by 30 percent from their peak in September, but went up 33% year-on-year, while prices for apartments dropped 20% from last September, but grew 16% year-on-year.
The figures for December 2008 also indicate a drop of 23% from the peak in September 2008.
Transaction volumes fell from November 2008, but maintained healthy levels. The advertised rentals however, continued to increase 9% month-on-month, but HSBC expects rents to soften further with more units being converted from sale to lease.
The prices of properties in Dubai could drop by as much as 60% this year, from their peaks last year, Shuaa Capital predicts.
The latest report by Asteco, however, confirms that rental rates for villas and apartments have been levelling off throughout 2008 with an average growth rate of 4% for apartments and 8% for villas.
Labels: Dubai Real Estate, Latest News, Property Prices
Dubai more vulnerable to real estate slowdown, than Abu Dhabi
Saturday, January 17, 2009
The population in Dubai is likely to decline by 8 percent this year, due to recession in property sector, according to a new report.
The report, released by the UBS Investment Bank indicates a drop in population by 8 percent this year, which in turn would result in an oversupplied market, leading to 30 percent fall in house prices within next two years.
The researchers at UBS Investment Bank, in their report, mentioned that a slowdown in housing market, apart from the challenging macroeconomic conditions, may result in decrease in the number of foreign workers moving into the region for job purposes, and fewer investors being involved in local investments, including real estate.
With reduction in sales, property companies in Dubai, and in other emirates have been laying off staff, reducing marketing budgets and delaying projects. This in turn, has affected all major businesses, including construction companies, advertising firms and contractors.
According to the report, in case the property-related labour force dropped by 20 percent this year, and by 10 percent next year, this would result in a housing surplus of 87,000 units, which constitutes 27 percent of total stock in Dubai, towards end of the next year.
Such a situation would result in 30 percent decline or may be more than 50 percent decline, in prices, the report stated.
Dubai is getting more vulnerable to the recession in property sector, than in other emirates, mainly because of the major construction works happening here, and due to the fact that more than 50 percent of its economy is involved in property sector, the report said. On the other hand, its neighboring emirate Abu Dhabi is already witnessing an undersupply of housing, and the economy there is dependent on petrochemicals, and hence, may be less severely affected than Dubai, the report said.
The UBS researchers have recommended that the Dubai Government pass should pass regulations that make life easier for laid-off expatriates to continue their stay here, while looking out for new jobs, as maintaining expat population is critical for long-term property market and economic sustainability of Dubai, the report concluded.
The report, released by the UBS Investment Bank indicates a drop in population by 8 percent this year, which in turn would result in an oversupplied market, leading to 30 percent fall in house prices within next two years.
The researchers at UBS Investment Bank, in their report, mentioned that a slowdown in housing market, apart from the challenging macroeconomic conditions, may result in decrease in the number of foreign workers moving into the region for job purposes, and fewer investors being involved in local investments, including real estate.
With reduction in sales, property companies in Dubai, and in other emirates have been laying off staff, reducing marketing budgets and delaying projects. This in turn, has affected all major businesses, including construction companies, advertising firms and contractors.
According to the report, in case the property-related labour force dropped by 20 percent this year, and by 10 percent next year, this would result in a housing surplus of 87,000 units, which constitutes 27 percent of total stock in Dubai, towards end of the next year.
Such a situation would result in 30 percent decline or may be more than 50 percent decline, in prices, the report stated.
Dubai is getting more vulnerable to the recession in property sector, than in other emirates, mainly because of the major construction works happening here, and due to the fact that more than 50 percent of its economy is involved in property sector, the report said. On the other hand, its neighboring emirate Abu Dhabi is already witnessing an undersupply of housing, and the economy there is dependent on petrochemicals, and hence, may be less severely affected than Dubai, the report said.
The UBS researchers have recommended that the Dubai Government pass should pass regulations that make life easier for laid-off expatriates to continue their stay here, while looking out for new jobs, as maintaining expat population is critical for long-term property market and economic sustainability of Dubai, the report concluded.
Labels: Dubai Real Estate
No more freelancers will operate in Dubai's property sector
Thursday, January 01, 2009
The introduction of a new system of licensing rules for Realty brokers and online Registration of rental contracts in Dubai in 2009 is expected to make the sector more transparent and also the real estate investors in Dubai will feel safer investing in the emirate's property sector.
Real estate licensing procedures to control the operations of freelance real estate brokers are now set to be operated under one, uniform system, according to an agreement signed by the Department of Economic Development (DED) and Dubai's Real Estate Regulatory Authority (Rera). Earlier anyone who was a national of the United Arab Emirates or GCC could operate as an estate agent. According to the new rules, anyone opening a real estate brokerage will need to apply for a license and meet new criteria to operate.
Marwan Bin Galita, chief executive of Rera, told that those who apply for license should to be over 18, they need a good conduct certificate by CID and They must also under going training and attend courses run by RERA.
The DED will use its own license and business registration system according to RERA regulations for issuing licenses related to real estate activities. RERA will train a number of DED staff on how to use these new licensing procedures. The aim is to make the Real estate agents are qualified to complete real estate deals, and to have ethical standards for real estate agents, brokers and companies.
All tenancy agreements in Dubai must be registered on RERA's new online registration website, Ejari starting in January, so that the final rental index may be prepared by RERA. The rental index will map out rent structures in Dubai and is all set to launch the property rental index at the start of next year.
Marwan Bin Galita, chief executive of RERA said that Registration of all contracts is compulsory, under Law 26. This will assist in finding a rent data base which will make the whole system more efficient and transparent. The online registration, when complete makes it easier for RERA to monitor the rental market and track any landlords or tenants deviating from their tenancy contract.
Along with the recent amendment of law 26 relating to tenancy contracts, the Dubai's rental market is getting a good look. Nearly more than 100 companies have already registered their tenancy contracts on RERA's website.
Real estate licensing procedures to control the operations of freelance real estate brokers are now set to be operated under one, uniform system, according to an agreement signed by the Department of Economic Development (DED) and Dubai's Real Estate Regulatory Authority (Rera). Earlier anyone who was a national of the United Arab Emirates or GCC could operate as an estate agent. According to the new rules, anyone opening a real estate brokerage will need to apply for a license and meet new criteria to operate.
Marwan Bin Galita, chief executive of Rera, told that those who apply for license should to be over 18, they need a good conduct certificate by CID and They must also under going training and attend courses run by RERA.
The DED will use its own license and business registration system according to RERA regulations for issuing licenses related to real estate activities. RERA will train a number of DED staff on how to use these new licensing procedures. The aim is to make the Real estate agents are qualified to complete real estate deals, and to have ethical standards for real estate agents, brokers and companies.
All tenancy agreements in Dubai must be registered on RERA's new online registration website, Ejari starting in January, so that the final rental index may be prepared by RERA. The rental index will map out rent structures in Dubai and is all set to launch the property rental index at the start of next year.
Marwan Bin Galita, chief executive of RERA said that Registration of all contracts is compulsory, under Law 26. This will assist in finding a rent data base which will make the whole system more efficient and transparent. The online registration, when complete makes it easier for RERA to monitor the rental market and track any landlords or tenants deviating from their tenancy contract.
Along with the recent amendment of law 26 relating to tenancy contracts, the Dubai's rental market is getting a good look. Nearly more than 100 companies have already registered their tenancy contracts on RERA's website.
Labels: Dubai Real Estate, Estate Agents, Property Law
UAE investors seek "affordable exit route" to prevent distress sale
Tuesday, December 23, 2008
Buyers and property analysts in the UAE are of the opinion that UAE property developers should offer investors with an "affordable exit route" in order to keep away from distress sales.
According to the analysts, given the current situation of global financial crisis and thereby the sudden slump in property sector, it is imperative for developers and authorities in-charge to arrive upon a series of measures to restore investor confidence.
A leading banker in the UAE has suggested that probably an initiative from the government's end, such as reconsidering provision of residence visa facility for buyers of free-hold residential units, would help restore the confidence and boost the property sector.
He pointed out that when the property boom in Dubai began, several developers had given an impression that buying a free-hold property would entitle buyers with residential visa status. This resulted in a major boom in the sector and brought about considerable growth. But, just a couple of months ago, when the authorities clarified that buying a free-hold property does not grant a residential visa status, several international investors backed out of the market.
Despite several legislations such as the Escrow Account, interim real estate register rule by RERA, all helped in building investor trust, the sector needs more proactive measures for revitalization, he added.
The Founder-Chairman of Overseas Indians Economic Forum, Dr. Ram Buxani, said that those who bought several units to take advantage of lucrative earning opportunities, should be granted with an affordable exit route, so that they do not end up with distress sales, which would further delay recovery of property market. Also, the projects that are yet to tak-off or get started should be put on hold and incapable investors should be allowed a convenient exit.
Dr. Buxani explained that about 30 percent of property buyers in the market are individual investors, who play a major role in boosting property sector. Another area that needs to be considered is the penalty clause, which should be maintained at a reasonable level of below 5 percent for those intending to exit. In cases where cash refunds are impossible, even issuing bonds which could be redeemed in 3-4 years are a better option.
According to the analysts, given the current situation of global financial crisis and thereby the sudden slump in property sector, it is imperative for developers and authorities in-charge to arrive upon a series of measures to restore investor confidence.
A leading banker in the UAE has suggested that probably an initiative from the government's end, such as reconsidering provision of residence visa facility for buyers of free-hold residential units, would help restore the confidence and boost the property sector.
He pointed out that when the property boom in Dubai began, several developers had given an impression that buying a free-hold property would entitle buyers with residential visa status. This resulted in a major boom in the sector and brought about considerable growth. But, just a couple of months ago, when the authorities clarified that buying a free-hold property does not grant a residential visa status, several international investors backed out of the market.
Despite several legislations such as the Escrow Account, interim real estate register rule by RERA, all helped in building investor trust, the sector needs more proactive measures for revitalization, he added.
The Founder-Chairman of Overseas Indians Economic Forum, Dr. Ram Buxani, said that those who bought several units to take advantage of lucrative earning opportunities, should be granted with an affordable exit route, so that they do not end up with distress sales, which would further delay recovery of property market. Also, the projects that are yet to tak-off or get started should be put on hold and incapable investors should be allowed a convenient exit.
Dr. Buxani explained that about 30 percent of property buyers in the market are individual investors, who play a major role in boosting property sector. Another area that needs to be considered is the penalty clause, which should be maintained at a reasonable level of below 5 percent for those intending to exit. In cases where cash refunds are impossible, even issuing bonds which could be redeemed in 3-4 years are a better option.
Labels: Dubai Real Estate, Market Trends, Real Estate News
Dubai's RERA urges investors to beware of illegal groups
Friday, December 19, 2008
Dubai's RERA (Real Estate Regulatory Authority) has cautioned investors to stay away from 'illegal groups' relaying misleading and baseless information about property regulations.
The Authorities have urged investors to stay alert and get in touch with RERA, before signing deals.
Circulation of such information is 'highly misleading' and 'deceptive' to investors. This will result in investors losing money directly, if the contracts are not thoroughly read and cross-verified, and if proper legal advice is not sought, officials at RERA announced.
The officials have requested investors to consult them for any official information on Dubai property market and pertaining to investments.
The Authorities have urged investors to stay alert and get in touch with RERA, before signing deals.
Circulation of such information is 'highly misleading' and 'deceptive' to investors. This will result in investors losing money directly, if the contracts are not thoroughly read and cross-verified, and if proper legal advice is not sought, officials at RERA announced.
The officials have requested investors to consult them for any official information on Dubai property market and pertaining to investments.
Labels: Dubai Real Estate
Dubai realty sector introduced to the 'Swap Shop' concept
Saturday, December 13, 2008
The Dubai-based property broker, Smith & Ken has signed three deals this month, under a new concept of 'Swap Shop', wherein property buyers are free to exchange their properties.
The Chief Executive of Smith & Ken, Benjamin J Smith, who spoke to the media, said that when a person is unable to sell his property, he is offered the choice of swapping the property for another one, with a value lower than his current property, thereby offering the person a chance to own another property, while also holding back some extra cash.
Explaining the concept, he went on to say that a client of Smith & Ken, who owned a three bedroom shoreline sea-facing apartment worth Dh.4.5mn, with 2,184 square feet area, was actually in search of a garden home. The agency helped the client in locating a property at Palm Jumeirah, worth Dh.9mn four bedroom villa, with an area of 6500sq. ft., whose owner was looking to sell it.
The agency helped both owners to meet up and signed a deal between them. The advantage of such a deal, in this particular case, was that the person who was swapping his garden home property for the shoreline apartment, got an get hold of extra cash.
The agency charges the buyer and seller one percent of property value as commission. Speaking about the Dubai property market, Smith urged banks and lending institutions to raise the loan-to-value ratios once again, to the earlier 80 to 85 percent level, to reinvigorate sales.
Smith feels that even if prices are dropping in Dubai, it is still an attractive destination considering the investor's return and rental yield.
The value of residential properties in Dubai has climbed 5% during third quarter, when compared to second quarter of this year, while the average price for homes has risen by 7%.
The Chief Executive of Smith & Ken, Benjamin J Smith, who spoke to the media, said that when a person is unable to sell his property, he is offered the choice of swapping the property for another one, with a value lower than his current property, thereby offering the person a chance to own another property, while also holding back some extra cash.
Explaining the concept, he went on to say that a client of Smith & Ken, who owned a three bedroom shoreline sea-facing apartment worth Dh.4.5mn, with 2,184 square feet area, was actually in search of a garden home. The agency helped the client in locating a property at Palm Jumeirah, worth Dh.9mn four bedroom villa, with an area of 6500sq. ft., whose owner was looking to sell it.
The agency helped both owners to meet up and signed a deal between them. The advantage of such a deal, in this particular case, was that the person who was swapping his garden home property for the shoreline apartment, got an get hold of extra cash.
The agency charges the buyer and seller one percent of property value as commission. Speaking about the Dubai property market, Smith urged banks and lending institutions to raise the loan-to-value ratios once again, to the earlier 80 to 85 percent level, to reinvigorate sales.
Smith feels that even if prices are dropping in Dubai, it is still an attractive destination considering the investor's return and rental yield.
The value of residential properties in Dubai has climbed 5% during third quarter, when compared to second quarter of this year, while the average price for homes has risen by 7%.
Labels: Dubai Real Estate, Market Trends
Investments in Dubai property sector this year exceeds Dh158bn
Thursday, December 11, 2008
The investments in Dubai property sector have crossed Dh.158bn so far this year, revealed experts, after considering the number of sales registrations, leasing and mortgage transactions.
Speaking during the recently held Urban Waterfront Conference, the experts revealed that the global market value of waterfront developments was set to exceed $500bn within next five years.
Housing three Palm projects, The World, and Waterfront, in pipeline, Dubai is set to be one of the major active locations in terms of waterfront developments, the experts revealed.
Although temporarily these projects are on hold, investments in Dubai are continuing to grow. So far, despite the global financial crisis, Dubai has been the most attractive destination for investors around the world till date, with an investment of more than Dh.158bn being invested during the year. This is in comparison to Dh.151bn investments last year, said Ahmet Kayhan, Chief Executive of Reidin.com.
As per the figures, the top investor countries in Dubai are India, Saudi Arabia, Russia, UK, Iran, Oman, Canada, Bahrain and Kuwait, apart from few other countries such as Pakistan, Singapore and Afghanistan having invested during the first three quarter of this year.
Speaking during the recently held Urban Waterfront Conference, the experts revealed that the global market value of waterfront developments was set to exceed $500bn within next five years.
Housing three Palm projects, The World, and Waterfront, in pipeline, Dubai is set to be one of the major active locations in terms of waterfront developments, the experts revealed.
Although temporarily these projects are on hold, investments in Dubai are continuing to grow. So far, despite the global financial crisis, Dubai has been the most attractive destination for investors around the world till date, with an investment of more than Dh.158bn being invested during the year. This is in comparison to Dh.151bn investments last year, said Ahmet Kayhan, Chief Executive of Reidin.com.
As per the figures, the top investor countries in Dubai are India, Saudi Arabia, Russia, UK, Iran, Oman, Canada, Bahrain and Kuwait, apart from few other countries such as Pakistan, Singapore and Afghanistan having invested during the first three quarter of this year.
Labels: Dubai Real Estate, Investment Property
Panel established to monitor future real estate projects
Saturday, November 15, 2008
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.
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
Changes witnessed in property scenario of Dubai
Friday, November 07, 2008
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.
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
Property prices in Dubai surge 17 percent: Report
Monday, November 03, 2008
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.
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
The six-year property boom in Dubai may slow down, fear agents
Wednesday, October 29, 2008
The six year property boom that Dubai witnessed has almost ended, with the sales collapsing amidst fears of global economic downturn, reveal agents.
"Last month was the worst, a real disaster," said Mehdi Zoghbi, a property agent at the Middle East Real Estate Consultants, who spoke to Zawya.com.
The sellers are desperate and are now offering their off-plan properties on the secondary market for zero premium, despite the loss on investment, just to offload quickly, it is said.
Dubai, being the first emirate to permit foreigners to purchase homes, will also be the first to see a drop in property prices, with the global credit crunch and region's prospects undermining investor confidence.
According to a property agent at Al Jabal Real Estate, the commissions have dropped by 70 percent currently. Dubai needs to apply caution to curb the practice of "flipping" property and payment of "key money" to reserve real estate, the agent said.
However, the biggest developers in the city, such as Nakheel and Emaar are confident that sales will remain robust. The Chairman of Emaar, Mohammed Alabbar, in his statement, expressed confidence about the fundamentals and future growth of the company.
Despite this, Emaar's stock has fallen 62 percent since the beginning of the year, which is more than 48 percent fall in Dubai Financial market's main index during the same period. Colliers International reported that property price growth in Dubai dropped to 16 percent during second half of the year from 42 percent during the first quarter of the year.
Even Morgan Stanley had warned a drop in prices by 10 percent in Dubai towards 2010.
A drop in property prices of Dubai, would also burden the Dubai economy further, considering the fact that it does not profit from the vast oil income otherwise enjoyed by its neighboring emirate Abu Dhabi. At present property and construction contribute to about 30 percent of the economy in the emirate.
The strong economic condition in the region which had supported the property boom in Dubai, too, has now been badly hit.
Considering all such factors, whether buyers would still continue to respond amidst the current depressing economic stance is yet to be ascertained.
"Last month was the worst, a real disaster," said Mehdi Zoghbi, a property agent at the Middle East Real Estate Consultants, who spoke to Zawya.com.
The sellers are desperate and are now offering their off-plan properties on the secondary market for zero premium, despite the loss on investment, just to offload quickly, it is said.
Dubai, being the first emirate to permit foreigners to purchase homes, will also be the first to see a drop in property prices, with the global credit crunch and region's prospects undermining investor confidence.
According to a property agent at Al Jabal Real Estate, the commissions have dropped by 70 percent currently. Dubai needs to apply caution to curb the practice of "flipping" property and payment of "key money" to reserve real estate, the agent said.
However, the biggest developers in the city, such as Nakheel and Emaar are confident that sales will remain robust. The Chairman of Emaar, Mohammed Alabbar, in his statement, expressed confidence about the fundamentals and future growth of the company.
Despite this, Emaar's stock has fallen 62 percent since the beginning of the year, which is more than 48 percent fall in Dubai Financial market's main index during the same period. Colliers International reported that property price growth in Dubai dropped to 16 percent during second half of the year from 42 percent during the first quarter of the year.
Even Morgan Stanley had warned a drop in prices by 10 percent in Dubai towards 2010.
A drop in property prices of Dubai, would also burden the Dubai economy further, considering the fact that it does not profit from the vast oil income otherwise enjoyed by its neighboring emirate Abu Dhabi. At present property and construction contribute to about 30 percent of the economy in the emirate.
The strong economic condition in the region which had supported the property boom in Dubai, too, has now been badly hit.
Considering all such factors, whether buyers would still continue to respond amidst the current depressing economic stance is yet to be ascertained.
Labels: Dubai Real Estate, Latest News, Market Trends, Property Prices
Over 40% say it is still a good time to buy property in Dubai
Monday, October 20, 2008
Since the recent dramatic events in the financial world around the globe, the organisers of this weeks' Worldwide Property Show being held in Dubai have just announced the results of a recent survey on investor confidence conducted in association with YouGovSiraj.
The survey shows an optimistic view, with one fourth of respondents feeling that the global crisis will only have a minor impact on the local UAE Property Market. 56% surveyed felt that there may be a slowdown but will not have the same impact as in Europe and US.
The survey further revealed that Dubai residents are more confident than those living in Abu Dhabi and Sharjah however 40% of all respondents felt that now is still a good time to invest as they can pick up a bargain. 16% of respondents were not sure and were sitting on the fence.
When deciding on the developer -value for money, ability to adhere to promises and transparency of information are the attributes that people look at. The least important attribute is public information available either on a website or in the media. This indicates that consumers are anxious about cost of ownership and the inherent investment value of the property.
Respondents were also asked what were their top destinations for real estate investment around the world - 55% favoured Asia, 40% for Middle East, 32% for Europe & UK and 27% for North America.
George Betz ,International Sales Director at Dubai Shows Limited organisers of the Worldwide Property Show said: "Considering our survey has literally been completed in the last few days since the global meltdown, it is very encouraging to see that people still understand the merit in investing in real estate and that now is still a good time to buy as prices are low."
Betz continued: "The Worldwide Property Show which started in 1995 has received a record number of developers and estate agents wishing to participate in this season's show and will feature 85 exhibitors from 32 countries including USA, Egypt, Morocco and UK, as well as emerging Asian markets such as Philippines and Thailand and a very wide variety of UAE developers and agents."
Mike Bridge, Business Development Director at Dubai Shows Limited said: "With developers feeling the pinch, it is definitely a buyers market with great opportunities to select prime property in some of the best locations in the world. You cannot take away the benefits, even in a crisis, of a fabulous city or beautiful coastline."
Bridge added: "It is also good news that the banks have recently received Governments' support and are more likely to be in a position to fund property investment again".
The Worldwide Property Show and UAE Developer, the UAE's longest running consumer property exhibition opens 23rd to 25th October 2008 at the Grand Hyatt Dubai.
The survey shows an optimistic view, with one fourth of respondents feeling that the global crisis will only have a minor impact on the local UAE Property Market. 56% surveyed felt that there may be a slowdown but will not have the same impact as in Europe and US.
The survey further revealed that Dubai residents are more confident than those living in Abu Dhabi and Sharjah however 40% of all respondents felt that now is still a good time to invest as they can pick up a bargain. 16% of respondents were not sure and were sitting on the fence.
When deciding on the developer -value for money, ability to adhere to promises and transparency of information are the attributes that people look at. The least important attribute is public information available either on a website or in the media. This indicates that consumers are anxious about cost of ownership and the inherent investment value of the property.
Respondents were also asked what were their top destinations for real estate investment around the world - 55% favoured Asia, 40% for Middle East, 32% for Europe & UK and 27% for North America.
George Betz ,International Sales Director at Dubai Shows Limited organisers of the Worldwide Property Show said: "Considering our survey has literally been completed in the last few days since the global meltdown, it is very encouraging to see that people still understand the merit in investing in real estate and that now is still a good time to buy as prices are low."
Betz continued: "The Worldwide Property Show which started in 1995 has received a record number of developers and estate agents wishing to participate in this season's show and will feature 85 exhibitors from 32 countries including USA, Egypt, Morocco and UK, as well as emerging Asian markets such as Philippines and Thailand and a very wide variety of UAE developers and agents."
Mike Bridge, Business Development Director at Dubai Shows Limited said: "With developers feeling the pinch, it is definitely a buyers market with great opportunities to select prime property in some of the best locations in the world. You cannot take away the benefits, even in a crisis, of a fabulous city or beautiful coastline."
Bridge added: "It is also good news that the banks have recently received Governments' support and are more likely to be in a position to fund property investment again".
The Worldwide Property Show and UAE Developer, the UAE's longest running consumer property exhibition opens 23rd to 25th October 2008 at the Grand Hyatt Dubai.
Labels: Dubai Real Estate, Latest News, Property-show
Commercial property prices in Dubai may slow down
Saturday, October 18, 2008
With more supply hitting the market, the rise in commercial property prices are bound to slow down, indicate recent reports.
Dubai has begun discouraging short-term investors, with few commercial buildings being listed at a negative premium. A commercial review by Better Homes, suggests that with the liquidity being squeezed in global markets, more such instances are likely to occur.
The global recession has created panic in terms of sentiment. Several projects being launched this year are exceptionally highly-priced in the range of Dh.4000 to Dh.5000 per square foot, when compared to last year.
Such prices are agreeable when things are going good and fine, but when the projects are three to five years away from completion, a slowdown is inevitable, says Niraj Masand, Managing Director-Commercial Advisory, Better Homes.
In the third quarter of this year, an increase in activity, and better interest towards commercial properties in Jumeirah Lake Towers, Meydan, Dubai Waterfront and Dubai Maritime have been noticed.
Rents are however, very high for both primary and secondary offices. The rates for office space range from Dh.250 to Dh.275 per square foot in old commercial areas such as Bur Dubai and Deira, while the rent is Dh.500 to Dh.550 in new places such as the DIFC and Jumeirah Lake Towers.
Just as is the case with residential sector, the demand continues to surpass supply in the commercial sector too, which has led to inflated rents. This indicates that on purchase of such properties, investors gain good returns for their investments, and this is a huge opportunity for speculators, Masand pointed out.
Dubai has begun discouraging short-term investors, with few commercial buildings being listed at a negative premium. A commercial review by Better Homes, suggests that with the liquidity being squeezed in global markets, more such instances are likely to occur.
The global recession has created panic in terms of sentiment. Several projects being launched this year are exceptionally highly-priced in the range of Dh.4000 to Dh.5000 per square foot, when compared to last year.
Such prices are agreeable when things are going good and fine, but when the projects are three to five years away from completion, a slowdown is inevitable, says Niraj Masand, Managing Director-Commercial Advisory, Better Homes.
In the third quarter of this year, an increase in activity, and better interest towards commercial properties in Jumeirah Lake Towers, Meydan, Dubai Waterfront and Dubai Maritime have been noticed.
Rents are however, very high for both primary and secondary offices. The rates for office space range from Dh.250 to Dh.275 per square foot in old commercial areas such as Bur Dubai and Deira, while the rent is Dh.500 to Dh.550 in new places such as the DIFC and Jumeirah Lake Towers.
Just as is the case with residential sector, the demand continues to surpass supply in the commercial sector too, which has led to inflated rents. This indicates that on purchase of such properties, investors gain good returns for their investments, and this is a huge opportunity for speculators, Masand pointed out.
Labels: Commercial Property, Dubai Real Estate, Property Prices
Decline in property prices unlikely; Dubai may see correction in profit
Saturday, October 04, 2008
Property prices in Dubai are unlikely to decline by 2010, as against predicted in the recent reports, but, there will be a correction in profits, revealed the top officials at Dubai Land Department (DLD).
Although several reports and analysts are predicting a dim future for Dubai's property sector, optimists are still of the opinion that it is just the beginning of success for Dubai.
According to CEO of RERA(Real Estate Regulatory Authority), Marwan Bin Ghalita, there will be correction in few places, but only in profit. Instead of making a profit of 20 percent, may be, several investors will make a profit of 5 percent, but they are not losing anything.
A 10 percent decline in Dubai property prices is likely towards 2010, said a recent Morgan Stanley report.
Even the investment Bank, EFG Hermes, in their report mentioned that a 20 percent decline in property prices is likely towards 2011.
However, the Director General of DLD, Sultan Bin Butti Bin Mejrin, said that despite such reports Dubai's property sector continues to remain robust.
He pointed out that similar reports had cropped up in 2007, but Dubai continued to remain a strong market, much against predictions. The DLD is still registering Dh.200bn worth transactions, and the market continues to remain healthy.
Agreeing with DLD, even Abid Junaid, Executive Director of ETA Star Properties, said that a drop in property prices is unlikely in the near future. The popularity of Dubai with investors is mainly due to the lifestyle offered, its ideal positioning in the Middle East and its tax-free structure. None of these has changed.
The DLD has so far registered 5,099 plots in Dubai, with investors of various nationalities, including UAE nationals. Indians continue to be the largest number of home owners. Economists at Standard Chartered, suggests introduction of a 50 percent capital gains tax to eradicate speculators.
The DLD last week had last week announced that a rental index, meant for new entrants to Dubai, would be announced post Eid Al Fitr. The index will work together with the new rent cap. However, it is yet to be known if the new cap will be more or less than the current five percent, but, it is believed to include a different 'mechanism'.
Although several reports and analysts are predicting a dim future for Dubai's property sector, optimists are still of the opinion that it is just the beginning of success for Dubai.
According to CEO of RERA(Real Estate Regulatory Authority), Marwan Bin Ghalita, there will be correction in few places, but only in profit. Instead of making a profit of 20 percent, may be, several investors will make a profit of 5 percent, but they are not losing anything.
A 10 percent decline in Dubai property prices is likely towards 2010, said a recent Morgan Stanley report.
Even the investment Bank, EFG Hermes, in their report mentioned that a 20 percent decline in property prices is likely towards 2011.
However, the Director General of DLD, Sultan Bin Butti Bin Mejrin, said that despite such reports Dubai's property sector continues to remain robust.
He pointed out that similar reports had cropped up in 2007, but Dubai continued to remain a strong market, much against predictions. The DLD is still registering Dh.200bn worth transactions, and the market continues to remain healthy.
Agreeing with DLD, even Abid Junaid, Executive Director of ETA Star Properties, said that a drop in property prices is unlikely in the near future. The popularity of Dubai with investors is mainly due to the lifestyle offered, its ideal positioning in the Middle East and its tax-free structure. None of these has changed.
The DLD has so far registered 5,099 plots in Dubai, with investors of various nationalities, including UAE nationals. Indians continue to be the largest number of home owners. Economists at Standard Chartered, suggests introduction of a 50 percent capital gains tax to eradicate speculators.
The DLD last week had last week announced that a rental index, meant for new entrants to Dubai, would be announced post Eid Al Fitr. The index will work together with the new rent cap. However, it is yet to be known if the new cap will be more or less than the current five percent, but, it is believed to include a different 'mechanism'.
Labels: Dubai Real Estate, Market Trends, Property Prices
Dubai realty will not see any more project delays: Land Department
Sunday, September 28, 2008
With more new regulations introduced, which holds developers accountable for delays in projects, investors in Dubai's real estate sector will no longer have to worry about frustrating project delays, reports the Gulf News.
The Law No.13 and 14, intends to increase transparency in the property market. According to officials in the Dubai Land Department, following registration and approval, all property information will be fed into the system. Hence all details of the project will be readily available and there will be no reason for delays. Law No.13 mandates all developers to pre-register their off-plan properties with the Land Department to form a full database of property transactions. Law No.14 makes it easier for Banks to obtain proof of land titles.
Both Law No. 13 and 14 were made effective last week. Law No.13 ensures that developers register all their projects before launching sales. No one can release a project unless approvals are done, and the approval must be sought from five specified government bodies including Dewa, RTA, Dubai Municipality, Land Department and RERA, said Bin Galita, the CEO of RERA.
Currently few developers are seen demanding a deposit on the unit prior to giving a purchase agreement. As per Law No.13, as soon as the deposit is paid, the sales and purchase agreement should be given immediately.
The new law also stipulates a certain acceptable increase in floorplan of a unit. On completion, however, if the floorplan is smaller than stipulated, the buyer can claim compensation.
The Law No.8 states that developers are given six months time from registration to begin construction of a project. The developers are not allowed to cancel a project without informing the Land Department.
To further increase transparency in the market, the property court will begin operations during first week of October. So far about 96 cases have been solved through mediation by the Land Department. About Dh.200bn worth of transactions are so far registered with the Land Department.
The Law No.13 and 14, intends to increase transparency in the property market. According to officials in the Dubai Land Department, following registration and approval, all property information will be fed into the system. Hence all details of the project will be readily available and there will be no reason for delays. Law No.13 mandates all developers to pre-register their off-plan properties with the Land Department to form a full database of property transactions. Law No.14 makes it easier for Banks to obtain proof of land titles.
Both Law No. 13 and 14 were made effective last week. Law No.13 ensures that developers register all their projects before launching sales. No one can release a project unless approvals are done, and the approval must be sought from five specified government bodies including Dewa, RTA, Dubai Municipality, Land Department and RERA, said Bin Galita, the CEO of RERA.
Currently few developers are seen demanding a deposit on the unit prior to giving a purchase agreement. As per Law No.13, as soon as the deposit is paid, the sales and purchase agreement should be given immediately.
The new law also stipulates a certain acceptable increase in floorplan of a unit. On completion, however, if the floorplan is smaller than stipulated, the buyer can claim compensation.
The Law No.8 states that developers are given six months time from registration to begin construction of a project. The developers are not allowed to cancel a project without informing the Land Department.
To further increase transparency in the market, the property court will begin operations during first week of October. So far about 96 cases have been solved through mediation by the Land Department. About Dh.200bn worth of transactions are so far registered with the Land Department.
Labels: Dubai Real Estate, Latest News, Property Law
Global credit crunch prompts property developers to consider Islamic financial instruments
Thursday, September 18, 2008
With global credit crisis being noticed everywhere in the tough financial world, several property developers in the GCC are turning to Islamic financial instruments for getting a good start for their projects.
According to Swati Taneja, Conference Director of International Islamic Finance Forum, financing carried out as per Islamic rules emphasizes that gains should be derived from ethical, shared investment, rather being interest-based, and hence, this has sidestepped the credit crunch.
The International Islamic Forum, usually held twice a year, will be conducted in Istanbul from 13th to 17th October this year.
The slowdown in the international property market has hit conventional property firms, as investors have begun to scale back their exposure, particularly in highly leveraged markets,Swati said.
There are several instances of emerging developers worldwide adopting the Islamic model to finance their projects. The most recent among these is the biggest property developer of South East Asia, based in Singapore, which is expected to issue $700mn Islamic bond towards end of this year, as the first portion of investment, targeting the Middle East investors.
Taneja pointed out that there are only few competitive sources of finance available in the conventional financial world right now, but, there are several billions of dollars in the Islamic financial sector of the Middle East, seeking investments. However, unless developers plan their projects to be Shariah compliant, they will remain unnoticed.
In recognition of the high competitive alternative offered currently by Islamic finance to the conventional interest-based structures, the forum this year focuses on a special workshop about Islamic real estate deals.
The workshop will offer better understanding of Islamic finance and structures required for real estate development, and will examine the foundation of Islamic finance, and its applicability for real estate transactions.
The forum will identify new markets for Islamic finance and examine Sukuk structures and capital markets, Islamic jurisprudence, emerging Takaful development, alternative asset classes including private equity and real estate, and sustainability with greening of Islamic finance.
According to Swati Taneja, Conference Director of International Islamic Finance Forum, financing carried out as per Islamic rules emphasizes that gains should be derived from ethical, shared investment, rather being interest-based, and hence, this has sidestepped the credit crunch.
The International Islamic Forum, usually held twice a year, will be conducted in Istanbul from 13th to 17th October this year.
The slowdown in the international property market has hit conventional property firms, as investors have begun to scale back their exposure, particularly in highly leveraged markets,Swati said.
There are several instances of emerging developers worldwide adopting the Islamic model to finance their projects. The most recent among these is the biggest property developer of South East Asia, based in Singapore, which is expected to issue $700mn Islamic bond towards end of this year, as the first portion of investment, targeting the Middle East investors.
Taneja pointed out that there are only few competitive sources of finance available in the conventional financial world right now, but, there are several billions of dollars in the Islamic financial sector of the Middle East, seeking investments. However, unless developers plan their projects to be Shariah compliant, they will remain unnoticed.
In recognition of the high competitive alternative offered currently by Islamic finance to the conventional interest-based structures, the forum this year focuses on a special workshop about Islamic real estate deals.
The workshop will offer better understanding of Islamic finance and structures required for real estate development, and will examine the foundation of Islamic finance, and its applicability for real estate transactions.
The forum will identify new markets for Islamic finance and examine Sukuk structures and capital markets, Islamic jurisprudence, emerging Takaful development, alternative asset classes including private equity and real estate, and sustainability with greening of Islamic finance.
Labels: Dubai Real Estate, Mortgages, Real Estate News
New law ensures that Dubai is a safer place for investment
Wednesday, September 03, 2008
With the new law emphasizing that all its off-plan units be registered with the Dubai Land Department, the real estate market in Dubai is a far safer place for investment now, reveal legal consultants.
"The law is a step ahead in the vision of Dubai to develop a well-regulated property market, with particular emphasis being laid on consumer confidence and transparency"said Will Grinter, Legal Consultant, Clyde &Co., an international law firm.
Law No.14 will become effective in Dubai on the publication of next issue Government Gazzette. With large numbers of complaints pouring in from investors, in the off-plan market in particular, this new law will boost the security aspect in investments, and will a shot of much-required confidence in the market as a whole.
Apart from offer protection to off-plan investors, the new law will also enhance transparency in dealings of the secondary markets in off-plan property, and will also facilitate the registration process upon completion of development.
Grinter also warns that the new law does not include any special provision regarding project delays or cancellations, although RERA holds investigative powers.
A property court, due to begin operations soon, will deal with real estate disputes and is another positive step to ensure complete transparency in the market. Grinter also revealed that the new law would bring in a mandatory procedure that needs to be followed by any developer looking to end sale and purchase agreement.
"The law is a step ahead in the vision of Dubai to develop a well-regulated property market, with particular emphasis being laid on consumer confidence and transparency"said Will Grinter, Legal Consultant, Clyde &Co., an international law firm.
Law No.14 will become effective in Dubai on the publication of next issue Government Gazzette. With large numbers of complaints pouring in from investors, in the off-plan market in particular, this new law will boost the security aspect in investments, and will a shot of much-required confidence in the market as a whole.
Apart from offer protection to off-plan investors, the new law will also enhance transparency in dealings of the secondary markets in off-plan property, and will also facilitate the registration process upon completion of development.
Grinter also warns that the new law does not include any special provision regarding project delays or cancellations, although RERA holds investigative powers.
A property court, due to begin operations soon, will deal with real estate disputes and is another positive step to ensure complete transparency in the market. Grinter also revealed that the new law would bring in a mandatory procedure that needs to be followed by any developer looking to end sale and purchase agreement.
Labels: Dubai Real Estate, Off-plan, Property Law
Deyaar's new corporate identity makes it the one-stop realty solutions provider of Dubai
Saturday, August 30, 2008
Deyaar, the fastest growing realty company in the region, has unveiled its new corporate identity, which indicates the company's strategic shift from single-tower projects to larger communities, located in master-planned developments.
The unveiling of this new corporate identity is to meet the company's vision of seeking to enhance its status as a leading complete one-stop real estate solutions provider based in Dubai. This new corporate identity also indicates the eagerness of the company to develop signature communities.
The Chairman of Deyaar, HE Nasser Bin Hassan Al-Shaikh, expressing his excitement over revealing the new corporate identity, said that this signifies the beginning of the next growth phase for Deyaar.
"The future will see Deyaar entering new markets and carrying on with further expansions marking our presence in master-planned developments to encompass broader range of real estate offerings" he added.
Deyaar has so far launched six projects during the first half of this year in Dubai. The firm has reported a net profit of 266 percent during the first half of 2008, touching Dh.448.9 million, as against Dh.122.8mn during the same period last year. Net profit for the second quarter of this year has been recorded as Dh.246.9mn, an increase of 184 percent from Dh.87mn during second quarter of 2007.
The unveiling of this new corporate identity is to meet the company's vision of seeking to enhance its status as a leading complete one-stop real estate solutions provider based in Dubai. This new corporate identity also indicates the eagerness of the company to develop signature communities.
The Chairman of Deyaar, HE Nasser Bin Hassan Al-Shaikh, expressing his excitement over revealing the new corporate identity, said that this signifies the beginning of the next growth phase for Deyaar.
"The future will see Deyaar entering new markets and carrying on with further expansions marking our presence in master-planned developments to encompass broader range of real estate offerings" he added.
Deyaar has so far launched six projects during the first half of this year in Dubai. The firm has reported a net profit of 266 percent during the first half of 2008, touching Dh.448.9 million, as against Dh.122.8mn during the same period last year. Net profit for the second quarter of this year has been recorded as Dh.246.9mn, an increase of 184 percent from Dh.87mn during second quarter of 2007.
Labels: Deyaar, Dubai Real Estate, Latest News
Master developers deny residency visa guarantee clause in their contracts
Thursday, August 28, 2008
Few master developers in Dubai have been accused of removing a particular clause from their contracts, which guarantees investors with residency visas, said a report.
Emaar Properties has sent notices to sub-developers to put on hold the processing of residency visas, until further notice, revealed a developer when speaking to the media.
"A particular clause in our previous contracts carried an assurance that master developers will guarantee residence visa. The clause is now removed," said one developer.
Foreigners are less likely to purchase properties in Dubai, if they are not automatically entitled to long-term residency rights. Expatriates in neighbouring countries like Pakistan, Iran and Lebanon who faced political instability had been lured to Dubai, mainly on the assumption that owning a property would entitle them to long-term visas, ING said.
Being the commercial hub of the Arab world, Dubai saw property boom since 2002 when the government had permitted foreigners to invest in Dubai properties.
Developer, Union Properties, for instance, said that it does not assure property buyers with residency visas, as it is the responsibility of the Department of Naturalization and Residency to grant visas.
The Chief Executive of Dubai Properties, Mohamed Binbrek, for instance, was quoted as saying that it "never assured any visa and was just acting as a facilitator".
Emaar Properties has sent notices to sub-developers to put on hold the processing of residency visas, until further notice, revealed a developer when speaking to the media.
"A particular clause in our previous contracts carried an assurance that master developers will guarantee residence visa. The clause is now removed," said one developer.
Foreigners are less likely to purchase properties in Dubai, if they are not automatically entitled to long-term residency rights. Expatriates in neighbouring countries like Pakistan, Iran and Lebanon who faced political instability had been lured to Dubai, mainly on the assumption that owning a property would entitle them to long-term visas, ING said.
Being the commercial hub of the Arab world, Dubai saw property boom since 2002 when the government had permitted foreigners to invest in Dubai properties.
Developer, Union Properties, for instance, said that it does not assure property buyers with residency visas, as it is the responsibility of the Department of Naturalization and Residency to grant visas.
The Chief Executive of Dubai Properties, Mohamed Binbrek, for instance, was quoted as saying that it "never assured any visa and was just acting as a facilitator".
Labels: Dubai Real Estate, Latest News
Dubai mandates registration of off-plan property sales
Tuesday, August 26, 2008
It has been made mandatory that off-plan property sales in Dubai be registered with the Land Department of the emirate, and no developers will be permitted to charge transfer fee on such sales, according to a new law announced yesterday.
The Law No.13 of 2008 aims to regulate off-plan sales, and mandates registration with the land department, said Emad Eldin Farouq, Senior Legal Advisor, Land Department.
The practice of marketing residential or commercial units based on an architectural plan of the property, prior to building the structure, is termed as 'off-plan sales'.
"Any sale or disposition that transfers or restricts title will be void, if not registered in the interim real estate register," states the new law.
Hence any developer, who markets or sells other disposition prior to implementation of the law, will have to register it within 60 days, Farouq clarified.
The law also states that master developers and sub-developers will not be permitted to charge transfer fee on off-plan sales, henceforth. However, they will be permitted to accept administrative charges once it has been approved by the Land Department.
The Chief Executive Officer of Dubai Properties Group, Mohamed Binbrek, agreed that this is surely good news, as the interest of small investors and buyers will be protected, and that the Land department will now regulate the market. The new law is likely to add credibility to the market.
Last week, Dubai passed on a new mortgage law, which states that mortgage contracts need to be registered with the Land Department, and specified the size of the loan, the repayment period and the value of the property to which the loan is linked.
However, developers say that they will insist payment of a minimum of 20 to 30 percent of the property value prior to transferring to a second buyer under a resale transaction. They will also screen customer profiles prior to selling the property off-plan.
"he initial transfer and sale of off-plan properties will be permitted only after payment of 30 percent of total property value,"said an Emaar spokesperson.
The Law No.13 of 2008 aims to regulate off-plan sales, and mandates registration with the land department, said Emad Eldin Farouq, Senior Legal Advisor, Land Department.
The practice of marketing residential or commercial units based on an architectural plan of the property, prior to building the structure, is termed as 'off-plan sales'.
"Any sale or disposition that transfers or restricts title will be void, if not registered in the interim real estate register," states the new law.
Hence any developer, who markets or sells other disposition prior to implementation of the law, will have to register it within 60 days, Farouq clarified.
The law also states that master developers and sub-developers will not be permitted to charge transfer fee on off-plan sales, henceforth. However, they will be permitted to accept administrative charges once it has been approved by the Land Department.
The Chief Executive Officer of Dubai Properties Group, Mohamed Binbrek, agreed that this is surely good news, as the interest of small investors and buyers will be protected, and that the Land department will now regulate the market. The new law is likely to add credibility to the market.
Last week, Dubai passed on a new mortgage law, which states that mortgage contracts need to be registered with the Land Department, and specified the size of the loan, the repayment period and the value of the property to which the loan is linked.
However, developers say that they will insist payment of a minimum of 20 to 30 percent of the property value prior to transferring to a second buyer under a resale transaction. They will also screen customer profiles prior to selling the property off-plan.
"he initial transfer and sale of off-plan properties will be permitted only after payment of 30 percent of total property value,"said an Emaar spokesperson.
Labels: Dubai Real Estate, Off-plan, Property Law
New mortgage law in Dubai
Thursday, August 21, 2008
Dubai has issued a new mortgage law, so as to regulate the booming property sector of th emirate, announced RERA (Real Estate Regulatory Authority).As per 35-article decree, issued by Sheikh Mohammed bin Rashid Al-Maktoum, the Vice-President of UAE and Ruler of Dubai, the new law regulates the mortgage process so as to protect the rights of borrowers and lenders, while also enhancing transparency.
The law is effective, after 60 days of its publication in the official gazette. The law states that mortgage contracts can be registered with the land department, on specifying the size of loan, the repayment period, and the value of property to which the loan is linked.
The new law basically covers the mortgage procedures in Dubai. All property purchases happening offplan, for instance, and all the financing must be registered with the land department, said Marwan Ahmed bin Ghalita, the Chief of RERA.
The mortgages on properties in Dubai, should henceforth be sold by registered financial institutions and be insured.
The borrower and lender will have to present complete financial documents during the registration of the mortgage.
The government has granted exemption on properties given to nationals by the government. This gives better confidence to the lender, and more security for banks. Ghalita revealed that land department and banks are currently working out mortgage rates independently from central banks.
Being home to flamboyant developments such as palm-shaped islands, the tax-free Dubai began the Gulf property boom in 2002, by welcoming foreigners to invest in Dubai properties. The nascent mortgage business in Dubai has been growing ever-since, with home loans increasing by 55 percent in the year to March.
According to a statement from Morgan Stanley, the property prices in Dubai, have surged 79 percent since 2007, although a 10 percent decline in prices is expected by 2010.
The announcement of this new mortgage regulation coincides with the crackdown by Dubai government on corruption, with major executives in realty and financial firms facing investigations.
Labels: Dubai Real Estate, Latest News, Mortgages
DED and RERA sign deal to improve Dubai realty sector
Monday, August 11, 2008
The Dubai Department of Economic Development (DED) and Real Estate Regulatory Authority (RERA) in Dubai has entered into a partnership deal to improve the quality of support services offered to real estate investors and customers.
The Deputy Director General for Planning and Development, Khalid al Kassim, and RERA Chief Executive Officer, Marwan Bin Ghalaita, signed the agreement during a signing ceremony recently heald at DED headquarters in Diera.
According to agreement, RERA will use the license and business registration system applied by DED for issuing licenses pertaining to real estate activities. This is intended to ease licensing procedures pertaining to real estate activities and will enhance the overall performance of Dubai's real estate sector.
The agreement is in accordance with strategic objective by DED to constantly review its existing procedures so as to simplify its rules and regulations. The business registration system at DED has been streamlined and made more user-friendly. Investors can now set up businesses with minimum procedures and paperwork, and DED will assist them by co-ordination with other government authorities and departments.
Al Kassim said that through this agreement with RERA, the company is emphasizing its commitment to work together on initiatives that support the progress of realty sector in Dubai.
According to Marwan Bin Ghalaita, RERA will form the basics of licensing for real estate activities and execute procedures that hasten the issuance of licenses for such activities. Through joint initiative, RERA and DED will explore mutually beneficial opportunities that enhance the quality of support services offered to realty investors and customers.
Business owners holding old licenses can correct their status inline with the new regulations. RERA is looking forward to launch real estate activities that adhere to international criteria for real estate licensing, Ghalita added.
DED was established in March 1991 aiming to organize, regulate, and boost trade and industry in the Emirate of Dubai.
The Deputy Director General for Planning and Development, Khalid al Kassim, and RERA Chief Executive Officer, Marwan Bin Ghalaita, signed the agreement during a signing ceremony recently heald at DED headquarters in Diera.
According to agreement, RERA will use the license and business registration system applied by DED for issuing licenses pertaining to real estate activities. This is intended to ease licensing procedures pertaining to real estate activities and will enhance the overall performance of Dubai's real estate sector.
The agreement is in accordance with strategic objective by DED to constantly review its existing procedures so as to simplify its rules and regulations. The business registration system at DED has been streamlined and made more user-friendly. Investors can now set up businesses with minimum procedures and paperwork, and DED will assist them by co-ordination with other government authorities and departments.
Al Kassim said that through this agreement with RERA, the company is emphasizing its commitment to work together on initiatives that support the progress of realty sector in Dubai.
According to Marwan Bin Ghalaita, RERA will form the basics of licensing for real estate activities and execute procedures that hasten the issuance of licenses for such activities. Through joint initiative, RERA and DED will explore mutually beneficial opportunities that enhance the quality of support services offered to realty investors and customers.
Business owners holding old licenses can correct their status inline with the new regulations. RERA is looking forward to launch real estate activities that adhere to international criteria for real estate licensing, Ghalita added.
The activities included in the list of real estate activities are consultation, realty development, selling and renting, brokerage in buying, buying land and real estate, rental services, organizing public auctions, timeshare residential units, timeshare residential units rental services, real estate pricing services and all real estate future activities.
DED was established in March 1991 aiming to organize, regulate, and boost trade and industry in the Emirate of Dubai.
Labels: Dubai Real Estate, Property Law, Real Estate News
With more than 3000 high-rises, Dubai notices dearth of open spaces
Sunday, August 10, 2008
About 3000 mid-rise and high-rise towers are currently in various stages of design, planning, development and construction in Dubai, from now till the year 2025.
For instance, the Dubai World Central (DWC) alone will have 1100 apartment towers in its residential cluster, and 850 in its commercial cluster.
Besides, there are about 200 towers currently under development in Dubai Marina and the Jumeirah Lake Towers.
A few hundreds will come up in Jumeirah Village South, Dubai Waterfront and Dubailand.
Taking into account the small land area of about 4,114 square kilometers, with a population of more than over 1.4million, this is a rather huge development.
Matthew Green, the Research Manager, Cluttons UAE, compares this growth of Dubai, with that in New York City, with about 5500 high-rise towers.
Inflation being high, many countries are struggling with economic downturn, while Dubai continues to fly high with its strong boom. But, although Dubai continues with its growth, with new developments being launched every other day, this fast-paced development is hurting the environment as there is a dearth of open spaces such as public parks.
The Head of Capital Investments at Colliers Middle East, Eamon Alashkar, commented that although Dubai is growing at a rapid pace, more prominence should have been given to public spaces during the initial planning stages. At present, most developments in Dubai are a bare minimum of active public space, which is insufficient, taking into account the population and built-up area alongside it.
"Ultimately it will all depend largely on the manner in which the government restricts developments in certain locations and the development of green areas," Green was quoted as saying.
It is however, sad to note that in the rush to build and reap rewards, few developers have ignored the open grass areas and parks, in comparison to other major cities such as New York and London.
Dubai's future built environment is dependent on the objectives of profit-driven real estate developers, to a great extent, Alashkar added.
In few cases, although open spaces are effectively advertised to attract investors, the final picture looks different. It is saddening to note that although a park or an open area finds space in a brochure, which helps in turning in money towards the project, in reality, it is not possible to make profit out of a patch of grass.
For instance, the Dubai World Central (DWC) alone will have 1100 apartment towers in its residential cluster, and 850 in its commercial cluster.
Besides, there are about 200 towers currently under development in Dubai Marina and the Jumeirah Lake Towers.
A few hundreds will come up in Jumeirah Village South, Dubai Waterfront and Dubailand.
Taking into account the small land area of about 4,114 square kilometers, with a population of more than over 1.4million, this is a rather huge development.
Matthew Green, the Research Manager, Cluttons UAE, compares this growth of Dubai, with that in New York City, with about 5500 high-rise towers.
Inflation being high, many countries are struggling with economic downturn, while Dubai continues to fly high with its strong boom. But, although Dubai continues with its growth, with new developments being launched every other day, this fast-paced development is hurting the environment as there is a dearth of open spaces such as public parks.
The Head of Capital Investments at Colliers Middle East, Eamon Alashkar, commented that although Dubai is growing at a rapid pace, more prominence should have been given to public spaces during the initial planning stages. At present, most developments in Dubai are a bare minimum of active public space, which is insufficient, taking into account the population and built-up area alongside it.
"Ultimately it will all depend largely on the manner in which the government restricts developments in certain locations and the development of green areas," Green was quoted as saying.
It is however, sad to note that in the rush to build and reap rewards, few developers have ignored the open grass areas and parks, in comparison to other major cities such as New York and London.
Dubai's future built environment is dependent on the objectives of profit-driven real estate developers, to a great extent, Alashkar added.
In few cases, although open spaces are effectively advertised to attract investors, the final picture looks different. It is saddening to note that although a park or an open area finds space in a brochure, which helps in turning in money towards the project, in reality, it is not possible to make profit out of a patch of grass.
Labels: Dubai City, Dubai Real Estate
New property court in Dubai to get operational in September
Saturday, August 09, 2008
Dubai's RERA (Real Estate Regulatory Authority) will soon create a property court, which is likely to begin operations in September.
At present, although majority of dispute cases are attended to by RERA, the disputes do not make it to the civil court, as investors will have to wait for a certain period, ranging from 18 months to 3 years.
However, with the new court likely to be introduced, the end-users, tenants, investors, developers and contractors can have their disputes heard in a shorter time-frame.
Michael Kortbawi, a Partner at Bin Shabib law firm, said that RERA is already loaded with work. On establishment of the new court, it will have a better understanding of the market than the civil courts.
Real Estate is a major contributor to the revenues for Dubai government.
At present, although majority of dispute cases are attended to by RERA, the disputes do not make it to the civil court, as investors will have to wait for a certain period, ranging from 18 months to 3 years.
However, with the new court likely to be introduced, the end-users, tenants, investors, developers and contractors can have their disputes heard in a shorter time-frame.
Michael Kortbawi, a Partner at Bin Shabib law firm, said that RERA is already loaded with work. On establishment of the new court, it will have a better understanding of the market than the civil courts.
Real Estate is a major contributor to the revenues for Dubai government.
Labels: Dubai Real Estate, Property Law
Dubai property prices likely to fall 10 percent
Wednesday, August 06, 2008
The property prices in Dubai have surged 79 percent since 2007, and, may fall 10 percent by 2010, with the supply surpassing demand in the Gulf emirate, reveals a research not by Morgan Stanley.
This correction in Dubai's realty sector could have an undulation effect on its neighbouring countries in the region, with the shares of 12 regional property firms, dropping an average of 35 percent, states the research note.
At the worst, Dubai property prices may follow the pattern experience during the late 1990s in Singapore, wherein property prices dropped 80 percent in 18 months, although it is a "low probability event", said Morgan Stanley report.
Dubai property market will see an oversupply in 2009, which will lead to a series of price declines. Although these price declines are limited to Dubai, given the level of undersupply in neighboring markets, one cannot ignore the 'contagion' effect on Middle East, North Africa property share prices, with the investor confidence levels dropping down, Morgan Stanley said.
Being home to man-made palm-shaped islands and indoor ski slope in the Desert, Dubai hit the property boom in the region in 2002, when the foreigners were invited to invest in real estate. Thereafter, the regional economic growth in Dubai was supported manifold by the rise in oil prices, which drew streams of investors into the business and trade hub.
The Standard Chartered Bank last month mentioned that Dubai was boiling with speculators inflating prices of real estate that are still under construction. It was recommended that the emirate introduce capital gain tax to deter short-term investors.
Now, as per the Morgan Stanley price index, the property prices in Dubai surged 25 percent during first half of 2008, but is higher by 79 percent as against that in the beginning of 2007. The price increases have been driven by a variety of factors including speculation, genuine demand, and escalating construction costs.
For 2009, the prices will begin feeling the pressure, once oversupply becomes evident. Hence a 10 percent decline in property prices can be expected between 2008 and 2010, reveals the Morgan Stanley note.
Few developers are in fact, trying to keep away short-term investors. The developer of the Palm Island, Nakheel, has asked buyers at Trump International Hotel, to wait for a year, before selling off their units to the secondary market.
Although, Dubai is the leader for the Gulf Property market, the minor relaxation in prices in the emirate, may however, not bear an impact on Abu Dhabi and Qatar, as the property sectors here is likely to remain undersupplied until 2012, the report concluded.
This correction in Dubai's realty sector could have an undulation effect on its neighbouring countries in the region, with the shares of 12 regional property firms, dropping an average of 35 percent, states the research note.
At the worst, Dubai property prices may follow the pattern experience during the late 1990s in Singapore, wherein property prices dropped 80 percent in 18 months, although it is a "low probability event", said Morgan Stanley report.
Dubai property market will see an oversupply in 2009, which will lead to a series of price declines. Although these price declines are limited to Dubai, given the level of undersupply in neighboring markets, one cannot ignore the 'contagion' effect on Middle East, North Africa property share prices, with the investor confidence levels dropping down, Morgan Stanley said.
Being home to man-made palm-shaped islands and indoor ski slope in the Desert, Dubai hit the property boom in the region in 2002, when the foreigners were invited to invest in real estate. Thereafter, the regional economic growth in Dubai was supported manifold by the rise in oil prices, which drew streams of investors into the business and trade hub.
The Standard Chartered Bank last month mentioned that Dubai was boiling with speculators inflating prices of real estate that are still under construction. It was recommended that the emirate introduce capital gain tax to deter short-term investors.
Now, as per the Morgan Stanley price index, the property prices in Dubai surged 25 percent during first half of 2008, but is higher by 79 percent as against that in the beginning of 2007. The price increases have been driven by a variety of factors including speculation, genuine demand, and escalating construction costs.
For 2009, the prices will begin feeling the pressure, once oversupply becomes evident. Hence a 10 percent decline in property prices can be expected between 2008 and 2010, reveals the Morgan Stanley note.
Few developers are in fact, trying to keep away short-term investors. The developer of the Palm Island, Nakheel, has asked buyers at Trump International Hotel, to wait for a year, before selling off their units to the secondary market.
Although, Dubai is the leader for the Gulf Property market, the minor relaxation in prices in the emirate, may however, not bear an impact on Abu Dhabi and Qatar, as the property sectors here is likely to remain undersupplied until 2012, the report concluded.
Labels: Dubai Real Estate, Market Trends, Property Prices
Now affordable insurance for tenants/homeowners in Dubai
Monday, August 04, 2008
Now tenants and homeowners in Dubai can relax, as they do not have to spend hefty sums for safety and security. A deal between Better Homes, leading property consultancy group, and RSA, the insurance giants have brought in affordable insurance in Dubai for tenants and homeowners, for as low as Dh.190 to Dh.50,000 coverage.
Better Homes said that insurance levels for UAE were as low as five percent during the past, due to Dubai's transient nature and low crime levels, which resulted in low levels of insurance purchases.
Earlier people visiting Dubai, were short-term visitors and they lived in rented accommodation and never invested heavily in the contents, and hence felt that insurance was not a necessity, said Billy Rautenbach, Director of Operations, Better Homes.
However, with more expatriates choosing to make Dubai their permanent home, the demand for insurance services grew. Recent flooding, fires and incidents have further strengthened the need for insurance coverage.
Rautenbach explained that it is important for property owners and tenants to be covered by adequate insurance.
Rautenbach said that his company felt that most people have trouble in accessing a first-class product, and hence they have come up with a product that can directly be offered at the time of purchase or lease, apart from saving 20 to 30 percent against market rates, in addition to vast coverage.
Together with RSA, Better Homes have come up with a range of packages with rates that aptly fit the client requirements. Standard rates have been developed for content values. Clients with larger properties or additional contents, would customize the quote, said Julie Deighton, a spokeswoman for Better Homes.
The best part about the entire thing is that size of the property is not taken into consideration, as the client can select the amount of coverage that suits them. The policy is being offered through a streamlined process during which the clients will receive a complimentary quote depending on their property requirement, which is far free from the elaborate paperwork.
Here's a gist of Premium Value for coverage:
Better Homes said that insurance levels for UAE were as low as five percent during the past, due to Dubai's transient nature and low crime levels, which resulted in low levels of insurance purchases.
Earlier people visiting Dubai, were short-term visitors and they lived in rented accommodation and never invested heavily in the contents, and hence felt that insurance was not a necessity, said Billy Rautenbach, Director of Operations, Better Homes.
However, with more expatriates choosing to make Dubai their permanent home, the demand for insurance services grew. Recent flooding, fires and incidents have further strengthened the need for insurance coverage.
Rautenbach explained that it is important for property owners and tenants to be covered by adequate insurance.
Rautenbach said that his company felt that most people have trouble in accessing a first-class product, and hence they have come up with a product that can directly be offered at the time of purchase or lease, apart from saving 20 to 30 percent against market rates, in addition to vast coverage.
The cover is inclusive of accidental damage due to fire and floods, and accommodates spaces from bedrooms to villas with prices beginning at Dh.190 per annum, which is one of the cheapest in the market.
Together with RSA, Better Homes have come up with a range of packages with rates that aptly fit the client requirements. Standard rates have been developed for content values. Clients with larger properties or additional contents, would customize the quote, said Julie Deighton, a spokeswoman for Better Homes.
The best part about the entire thing is that size of the property is not taken into consideration, as the client can select the amount of coverage that suits them. The policy is being offered through a streamlined process during which the clients will receive a complimentary quote depending on their property requirement, which is far free from the elaborate paperwork.
Here's a gist of Premium Value for coverage:
- For a content coverage of Dh50,000, the premium is Dh190
- For a content coverage of Dh100,000, the premium is Dh300
- For a content coverage of Dh250,000, the premium is Dh700
- For a content coverage of Dh500,000, the premium is Dh1,500.
Labels: Dubai Real Estate, Latest News
Dubai ranked as most transparent realty market in the region
Friday, August 01, 2008
With more investors across the world opting to shift their focus on markets least hit by credit crunch, and thereby seeking to enter Gulf markets, the volume of property sales in Dubai is set to rise, confirms a leading global property investment expert.
Dubai has registered the greatest improvement in real estate transparency globally during the past two years, recording a surge of 55.2 percent in property deals, and is set to hit Dh.717bn in 2008 as against Dh.462bn in 2007.
According to Managing Director of Jones Lang LaSalle (JLL), Blair Hagkull, a leading real estate investment and advisory firm, Dubai, with credit crisis hitting real estate markets of Europe and US, investors are now targeting Gulf markets, particularly Dubai.
Speaking to reports during the launch of a new study on "Real Estate Transparency Report 2008" for MENA region, he revealed that Dubai has been ranked as the most transparent realty market in the region. Dubai has been ranked a transparency index exceeding other budding economies such as the BRIC (Brazil, Russia, India, China) markets.
JLL is an investment adviser with a track-record of $200billion worth projects in MENA. It has 180 offices worldwide, and has worked in 25 countries in the MENA region. The JLL Transparency Index covers 82 markets, and is rated against five transparency tiers. About 33 questions are designed to measure transparency objectively put into each market.
Transparent markets are those that are open and easier to carry on businesses with transparency maintained in transaction processes, market fundamentals, performance measurements, and the regulatory and legal environment.
Dubai has registered the greatest improvement in real estate transparency globally during the past two years, recording a surge of 55.2 percent in property deals, and is set to hit Dh.717bn in 2008 as against Dh.462bn in 2007.
According to Managing Director of Jones Lang LaSalle (JLL), Blair Hagkull, a leading real estate investment and advisory firm, Dubai, with credit crisis hitting real estate markets of Europe and US, investors are now targeting Gulf markets, particularly Dubai.
Speaking to reports during the launch of a new study on "Real Estate Transparency Report 2008" for MENA region, he revealed that Dubai has been ranked as the most transparent realty market in the region. Dubai has been ranked a transparency index exceeding other budding economies such as the BRIC (Brazil, Russia, India, China) markets.
JLL is an investment adviser with a track-record of $200billion worth projects in MENA. It has 180 offices worldwide, and has worked in 25 countries in the MENA region. The JLL Transparency Index covers 82 markets, and is rated against five transparency tiers. About 33 questions are designed to measure transparency objectively put into each market.
Transparent markets are those that are open and easier to carry on businesses with transparency maintained in transaction processes, market fundamentals, performance measurements, and the regulatory and legal environment.
Labels: Dubai Real Estate, Latest News
Tourism growth bring prosperity to Dubai property sector
Thursday, July 24, 2008
Real estate in Dubai continues to bring in prosperity to property sector recording double-digit annual revenues, the report said.
The property boom in Dubai is being driven by factors such as high population growth rates, increasing demand from expatriates, and strong regional liquidity.
Dubai is fast emerging as a real estate, financial and tourism hub, as well as an oasis of stability in a troubled region, reveals report. Taking into account the supply-demand imbalance and prices in real estate sector, it looks like the Dubai property sector will remain elevated during the next couple of years, and thereafter, the bulk of properties that are currently under construction will near completion.
The property sector continues to remain attractively priced, offering good return on investments. However, with the ambitious growth strategy of the emirate, there is a risk associated with continued heavy supply that could weigh on technical, the report states.
The government is also eager to double annual passenger movement from 8million to 15million by the year 2015. With the corporate being closely monitored by the sovereign, they operate as commercial entities and are not subjected to interference in their operations, says the report.
As for the potential risks, the report states that although realty sector slowdown has been long expected, it is yet to happen. But, once the new supply hits the market during next couple of years, a slowdown is likely within the sector, and the focus would then be shifted to other developing stories in the region.
The rapid pace of development is placing increased strain on the price and availability of construction materials and supply of labour, all of which could lead to considerable growth barrier.
The property boom in Dubai is being driven by factors such as high population growth rates, increasing demand from expatriates, and strong regional liquidity.
According to a report by Lehman Brothers on "Dubai Inc: Credit Overview and Relative Valuation", tourism accounts for 30 percent of Dubai's GDP, with no sign of slow down being seen in near future in the tourism-oriented realty developments and increased airline services.
Dubai is fast emerging as a real estate, financial and tourism hub, as well as an oasis of stability in a troubled region, reveals report. Taking into account the supply-demand imbalance and prices in real estate sector, it looks like the Dubai property sector will remain elevated during the next couple of years, and thereafter, the bulk of properties that are currently under construction will near completion.
The property sector continues to remain attractively priced, offering good return on investments. However, with the ambitious growth strategy of the emirate, there is a risk associated with continued heavy supply that could weigh on technical, the report states.
The government is also eager to double annual passenger movement from 8million to 15million by the year 2015. With the corporate being closely monitored by the sovereign, they operate as commercial entities and are not subjected to interference in their operations, says the report.
As for the potential risks, the report states that although realty sector slowdown has been long expected, it is yet to happen. But, once the new supply hits the market during next couple of years, a slowdown is likely within the sector, and the focus would then be shifted to other developing stories in the region.
The rapid pace of development is placing increased strain on the price and availability of construction materials and supply of labour, all of which could lead to considerable growth barrier.
Labels: Dubai Real Estate, Latest News, Market Trends
Residential property prices in Dubai may slow down in 2010
Monday, July 21, 2008
According to realty industry analysts, the residential property prices in Dubai are likely to continue its upward trend till 2010, until the demand-supply imbalance gets stabilized.
The Managing Director of Al Mal Capital Research, Robert McKinnon, said that the prices are likely to moderate by next year, although not substantially. With continued delays that plague the industry, one cannot expect a supply-demand balance until 2010.
Flurries of predictions have been witnessed during recent days regarding the supply-demand situation in Dubai, particularly with the major bulk of real estate units set to hit the property market.
As per the real estate price index in Dubai, an appreciation of 40.8 percent is seen in the residential sector each year. The prices in commercial property sector have risen by 42.7 percent during the same period.
The Managing Director of Al Mal Capital Research, Robert McKinnon, said that the prices are likely to moderate by next year, although not substantially. With continued delays that plague the industry, one cannot expect a supply-demand balance until 2010.
Flurries of predictions have been witnessed during recent days regarding the supply-demand situation in Dubai, particularly with the major bulk of real estate units set to hit the property market.
As per the real estate price index in Dubai, an appreciation of 40.8 percent is seen in the residential sector each year. The prices in commercial property sector have risen by 42.7 percent during the same period.
Labels: Dubai Real Estate, Property Prices
Dubai all set to stage biggest ever Cityscape exhibition
Thursday, July 17, 2008
Dubai is all set to host, what is termed as, the 'biggest-ever', Cityscape property exhibition, during later half of this year, with about 60,000 industry professionals and 1000 exhibitors.
The business-to-business real estate investment and development exhibition will feature industry pioneers and include five conferences.
The prestigious architectural awards will be one of the major attractions in the event, which has been extended for four days fro 6th to 9th October, in a space of 75,000 square meters, close to Dubai International Exhibition Center's capacity.
The event has grown during the past two years by 25 percent and 27 percent respectively, with this year being the biggest in terms of exhibition space and also in terms of participants.
The exhibition features 849 exhibitors, 51,855 industry professionals, all taking part from 136 countries. Besides the Cityscape Dubai Conference, the event will include Real Estate Leadership Strategy Facilities and Asset Management, World Architectural Conferences, Hotel and Tourism Investment and Development.
Regional pioneers such as Aldar Properties, Nakheel, Qatari Diar, Saraya Holdings, Tanmiyat Group, Abyaar Real Estate Development, Tameer, Al Qudra Real Estate, Aqaba Development Corportation, and Mag property Development have all signed up as sponsors of the event.
The Architectural Awards will be based on the theme 'Design for an Emerging World', and excellence will be rewarded in the field in emerging regions of the Middle East, Gulf, Africa, Asia and subcontinent and Australasia (except New Zealand, Australia and Japan) and Latin America.
The business-to-business real estate investment and development exhibition will feature industry pioneers and include five conferences.
The prestigious architectural awards will be one of the major attractions in the event, which has been extended for four days fro 6th to 9th October, in a space of 75,000 square meters, close to Dubai International Exhibition Center's capacity.
The event has grown during the past two years by 25 percent and 27 percent respectively, with this year being the biggest in terms of exhibition space and also in terms of participants.
The exhibition features 849 exhibitors, 51,855 industry professionals, all taking part from 136 countries. Besides the Cityscape Dubai Conference, the event will include Real Estate Leadership Strategy Facilities and Asset Management, World Architectural Conferences, Hotel and Tourism Investment and Development.
Regional pioneers such as Aldar Properties, Nakheel, Qatari Diar, Saraya Holdings, Tanmiyat Group, Abyaar Real Estate Development, Tameer, Al Qudra Real Estate, Aqaba Development Corportation, and Mag property Development have all signed up as sponsors of the event.
The Architectural Awards will be based on the theme 'Design for an Emerging World', and excellence will be rewarded in the field in emerging regions of the Middle East, Gulf, Africa, Asia and subcontinent and Australasia (except New Zealand, Australia and Japan) and Latin America.
Labels: Cityscape, Dubai Real Estate, Property-show
Dubai property sector fears an oversupply
Saturday, July 12, 2008
The Dubai property sector could take a backseat, if the surplus developments likely to come to the market next year, outstrips demand, and if the government steps back on its promise to issue residency visas.
In the opinion of Matthew Green, the Research Director at Cluttons, UAE, if the government withdrew its promise to grant residency visas for freehold purchasers and their families, it would shun away several hundreds of expatriate buyers, who consider Dubai market to be safer against troubles than in their home countries.
These comments were made following the release of report by Fitch, the ratings firm, which identifies oversupply, and sustaining of foreign demand, as major challenges that Dubai realty sector is likely to witness in near future.
According to the report, if the supply does not surpass demand, prices of properties will decline, reducing revenues further, and this would leave a negative impact on credit profiles of developers.
There are high chances of late deliveries and even project cancellation, due to logistical constraints, that would ultimately result in better match between demand and supply, it is said.
According to analysts, although supply is fast catching up with demand, oversupply is not considered as major threat to the market. As far as supplies are concerned, there are two factors that affect supply -one is delays and the other is construction constraint. However, risks are expected to a certain extent, as supply is catching up with demand beginning next year.
According to Green, oversupply is not a major concern at this point, or for the next three years. Looking at the deliveries over the past two years, only 50 percent of the expected supply has been delivered on time. In 2007, for instance, only 30,000 units were handed over after completion, as against a forecast of 60,000 units in 2006. Delays are part of the Dubai property market, and in fact, it may help in the long-term by 'drip-feeding' supply, rather than dumping numerous new units all at once.
As for the office space, it is said that with a population of 1.4million, Dubai currently has, more or less, the same amount of office space under construction, as in Moscow or Shanghai. The office sector is likely to experience a “price correction” when the new supplies hit the market in the next two years.
Dubai is expected to draw considerable demand for properties, as the emirate is a major player in contributing to the $1.8trillion worth of projects that are likely to enter the GCC realty market next year.
The report by Fitch states that foreign demand is a major factor that contributes to Dubai property market, mainly due to the number of expatriates living and working in Dubai.
According to Green, the tension between US and Iran, will not affect the stable Dubai or Middle Eastern markets in any way, nor will it dampen foreign demand, as historically Iranians have been major investors in Dubai, and any escalation in the region, could actually contribute further demand for property.
In the opinion of Matthew Green, the Research Director at Cluttons, UAE, if the government withdrew its promise to grant residency visas for freehold purchasers and their families, it would shun away several hundreds of expatriate buyers, who consider Dubai market to be safer against troubles than in their home countries.
These comments were made following the release of report by Fitch, the ratings firm, which identifies oversupply, and sustaining of foreign demand, as major challenges that Dubai realty sector is likely to witness in near future.
According to the report, if the supply does not surpass demand, prices of properties will decline, reducing revenues further, and this would leave a negative impact on credit profiles of developers.
There are high chances of late deliveries and even project cancellation, due to logistical constraints, that would ultimately result in better match between demand and supply, it is said.
According to analysts, although supply is fast catching up with demand, oversupply is not considered as major threat to the market. As far as supplies are concerned, there are two factors that affect supply -one is delays and the other is construction constraint. However, risks are expected to a certain extent, as supply is catching up with demand beginning next year.
According to Green, oversupply is not a major concern at this point, or for the next three years. Looking at the deliveries over the past two years, only 50 percent of the expected supply has been delivered on time. In 2007, for instance, only 30,000 units were handed over after completion, as against a forecast of 60,000 units in 2006. Delays are part of the Dubai property market, and in fact, it may help in the long-term by 'drip-feeding' supply, rather than dumping numerous new units all at once.
As for the office space, it is said that with a population of 1.4million, Dubai currently has, more or less, the same amount of office space under construction, as in Moscow or Shanghai. The office sector is likely to experience a “price correction” when the new supplies hit the market in the next two years.
Dubai is expected to draw considerable demand for properties, as the emirate is a major player in contributing to the $1.8trillion worth of projects that are likely to enter the GCC realty market next year.
The report by Fitch states that foreign demand is a major factor that contributes to Dubai property market, mainly due to the number of expatriates living and working in Dubai.
According to Green, the tension between US and Iran, will not affect the stable Dubai or Middle Eastern markets in any way, nor will it dampen foreign demand, as historically Iranians have been major investors in Dubai, and any escalation in the region, could actually contribute further demand for property.
Labels: Dubai Real Estate, Latest News
Dubai to house new property court
Thursday, July 10, 2008
More transparency likely in property-related matters, say developers
Dubai will house a new realty court which deals exclusively with property-related cases from September, announced a top official at the Dubai Courts.
The Judge Mohammed Yousuf A Sulaiman, the Deputy Director for Dubai Courts and Cassation Court's Senior Judge, has revealed that the Property Court will be established as per Law No.1 of year 2003, under the main section of the court called 'The First Instance Court.'
It will include jurisdictions over all properties in Dubai, except those associated to Dubai International Financial Center, which has its own judiciary system.
Yousuf said this is being done as per the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE, and Ruler of Dubai. Following the success of the Labour Court, this new court specializing in all property related matters is being launched.
The Chief of the Court of First Instance (Properties Court), Judge Abdul Qadir Mosa, will be responsible for setting up the property court.
At present all property-related cases are being tried under the Civil Law. In case of any new law being enforced within the jurisdiction of the property court, the law will override the Civil Law for all property cases, said the judge. The judgment passed in the property court, can be confronted in the Appellate Court.
There will be a minimum of ten judges in the property court, and the numbers would vary depending on the number of property-related cases.
Yousuf said that currently there are no cases pertaining to real estate issues that are pending at the Dubai Courts. The Dubai Courts do not hear rental disputes, which is solely being dealty by the Rent Committee of Dubai Municipality.
The establishment of this property court is expected to bring more transparency among developers in Dubai, while investors will continue to be inclined towards taking risk, agreed developers and analysts.
Following the announcement of establishment of the court, the Chief Executive of Amlak Finance, Arif Alharmi, commented that the establishment of the property court is a positive development as real estate market is heading towards maturity, and the value of transactions are on the rise.
Arab Richardson, the Nakheel Spokesperson, said that this court would help in efficiently dispensing matters pertaining to property ownership and mortgage enforcement. This move marks a part of futuristic development of legal process pertaining to property industry.
The Director of Research in EFG Hermes, Stephan Schurmann said that investors would be willing to take risks and there will be less illegal activities by developers. However, the question remains as to how well the court would be implemented and how the structure and setting up of the court would be.
The Chairman of Pearl Dubai, Abdul Majeed, agreed that it is a good initiative and will boost market confidence, and will bring more regulation and transparency to the market, while the property disputes too will be solved quickly.
The Tamweel CEO, Wasim Saifi, says that the initiative to create a separate court, by itself, shows the significance that the Dubai Government gives to realty sector. This specific court meant for realty sector will help in crossing hurdles bringing in greater transparency.
The court should work in co-ordination with RERA, rather than developers having to deal with multiple bodies, as at present the Land Department and RERA handles property cases. It should be brought under one umbrella, the Executive Director of ETA Star Properties, Abid Junaid, was quoted as saying.
Dubai will house a new realty court which deals exclusively with property-related cases from September, announced a top official at the Dubai Courts.
The Judge Mohammed Yousuf A Sulaiman, the Deputy Director for Dubai Courts and Cassation Court's Senior Judge, has revealed that the Property Court will be established as per Law No.1 of year 2003, under the main section of the court called 'The First Instance Court.'
It will include jurisdictions over all properties in Dubai, except those associated to Dubai International Financial Center, which has its own judiciary system.
Yousuf said this is being done as per the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE, and Ruler of Dubai. Following the success of the Labour Court, this new court specializing in all property related matters is being launched.
The Chief of the Court of First Instance (Properties Court), Judge Abdul Qadir Mosa, will be responsible for setting up the property court.
At present all property-related cases are being tried under the Civil Law. In case of any new law being enforced within the jurisdiction of the property court, the law will override the Civil Law for all property cases, said the judge. The judgment passed in the property court, can be confronted in the Appellate Court.
There will be a minimum of ten judges in the property court, and the numbers would vary depending on the number of property-related cases.
Yousuf said that currently there are no cases pertaining to real estate issues that are pending at the Dubai Courts. The Dubai Courts do not hear rental disputes, which is solely being dealty by the Rent Committee of Dubai Municipality.
The establishment of this property court is expected to bring more transparency among developers in Dubai, while investors will continue to be inclined towards taking risk, agreed developers and analysts.
Following the announcement of establishment of the court, the Chief Executive of Amlak Finance, Arif Alharmi, commented that the establishment of the property court is a positive development as real estate market is heading towards maturity, and the value of transactions are on the rise.
Arab Richardson, the Nakheel Spokesperson, said that this court would help in efficiently dispensing matters pertaining to property ownership and mortgage enforcement. This move marks a part of futuristic development of legal process pertaining to property industry.
The Director of Research in EFG Hermes, Stephan Schurmann said that investors would be willing to take risks and there will be less illegal activities by developers. However, the question remains as to how well the court would be implemented and how the structure and setting up of the court would be.
The Chairman of Pearl Dubai, Abdul Majeed, agreed that it is a good initiative and will boost market confidence, and will bring more regulation and transparency to the market, while the property disputes too will be solved quickly.
The Tamweel CEO, Wasim Saifi, says that the initiative to create a separate court, by itself, shows the significance that the Dubai Government gives to realty sector. This specific court meant for realty sector will help in crossing hurdles bringing in greater transparency.
The court should work in co-ordination with RERA, rather than developers having to deal with multiple bodies, as at present the Land Department and RERA handles property cases. It should be brought under one umbrella, the Executive Director of ETA Star Properties, Abid Junaid, was quoted as saying.
Labels: Dubai Real Estate, Latest News, Property Law
Dubai, Northern Emirates realty markets to stabilize by 2010
Friday, July 04, 2008
According to a leading developer, the property market in Dubai and other Northern Emirates is likely to stabilize towards 2010, attaining a sustainable balance between investors and property owners.
The realty sector in the United Arab Emirates has witnessed an unparalleled growth over the recent years, due to the frenetic and speculative property market in Dubai, surpassing the rest of the Arabian Gulf States together with ease, said Mohammed Nimer, the CEO of MAG Group Property Development.
The construction boom will reach its heights during 2009, with about $3billion worth of realty under construction. Thereafter, the value of market is likely to fall back to the levels during 2007, of about $1billion, as majority of units are delivered. Hence, this is hoped to subdue the surging market prices, he added.
According to CEO of MAG Group, homeowners currently account for 30 percent of properties sold at launch. Real estate sales are currently being largely dominated by short-term investors, rather than end users. This has led to inflation in prices, as the units are 'sold-on' premium several times prior to completion.
The evidence of UAE construction boom reaching its peak next year is evident in the database of Proleads, a Dubai-based research company, which keeps tab on major construction projects across the region from initial planning to completion.
The database displays about 80 units blocks individually budgeted at a value of $100million now under construction in the Northern Emirates and Dubai, with a total value of $4billion. A dramatic decline is seen in the database on announced or newly planned constructions on similar buildings for next year and by 2010, dozens of projects are shown to reach completion.
With most projects still being under construction and the next bunch of supplies hitting the market in 2009-10 will help in bringing about some stability to the market, Nimer pointed out.
However, this is not likely to provide a major respite from mounting prices, as certain other factors such as ever- is not something to be expected in the short term, Nimer concludes.
The realty sector in the United Arab Emirates has witnessed an unparalleled growth over the recent years, due to the frenetic and speculative property market in Dubai, surpassing the rest of the Arabian Gulf States together with ease, said Mohammed Nimer, the CEO of MAG Group Property Development.
The construction boom will reach its heights during 2009, with about $3billion worth of realty under construction. Thereafter, the value of market is likely to fall back to the levels during 2007, of about $1billion, as majority of units are delivered. Hence, this is hoped to subdue the surging market prices, he added.
According to CEO of MAG Group, homeowners currently account for 30 percent of properties sold at launch. Real estate sales are currently being largely dominated by short-term investors, rather than end users. This has led to inflation in prices, as the units are 'sold-on' premium several times prior to completion.
The evidence of UAE construction boom reaching its peak next year is evident in the database of Proleads, a Dubai-based research company, which keeps tab on major construction projects across the region from initial planning to completion.
The database displays about 80 units blocks individually budgeted at a value of $100million now under construction in the Northern Emirates and Dubai, with a total value of $4billion. A dramatic decline is seen in the database on announced or newly planned constructions on similar buildings for next year and by 2010, dozens of projects are shown to reach completion.
With most projects still being under construction and the next bunch of supplies hitting the market in 2009-10 will help in bringing about some stability to the market, Nimer pointed out.
However, this is not likely to provide a major respite from mounting prices, as certain other factors such as ever- is not something to be expected in the short term, Nimer concludes.
Labels: Dubai Real Estate, Latest News, Market Trends
World's first Turning Timepiece Building in Dubai
Wednesday, June 25, 2008
For the first time in the history of architecture, a structure in Dubai has been designed in a manner such that it moves in synch with earth, sun and time.
Positioned on the 550 east longitude line, Dubai is more than just an exotic getaway, on the north-eastern coast of Arabian Peninsula. Although the residents and tourists in Dubai will have to face soaring temperatures, the new structure unveiled has brought about a new dimension to living, by bringing in some cool to Dubai.
The 3600 Time World TM has announced the world's first Turning Timepiece Building - 550 Time Dubai TM which is ready to break ground on 8th August 2008 in Dubai.
550 Time Dubai TM is an accurate 'Timepiece Building' that is powered by the sun and scientific imagination. It turns 360 degrees in 7 days, offering 3600 panoramic penthouse views to all apartments offering a new view of the city each day.
Being a winner of international CNBC award for the best 'high rise' architecturally designed building in 2007, the building will be the first of 24 Timepiece Buildings likely to be constructed around the world, with all turning in total synchronization, with unique rotation technology under license from 3600 Time World TM. Each of the individual Timepiece Buildings will be made by internationally renowned designers and architects, with latest eco-friendly technology.
The Director of 3600 Time World TM Tay Singh, said "Press conferences are being planned for New York, Delhi, Moscow and Hong Kong, to enable the architectural vision behind the Timepiece Buildings to be brought to the notice of the world. The approach will explain the manner in which buildings can harness the power of nature, making them iconic, architecturally unique and eco-friendly."
550 Time Dubai TM is approved by Dubai Government's RERA (Real Estate Regulatory Authority). The developer, along with Meraas Holdings Limited, a newly established leading entity in Dubai, are finalizing a joint venture agreement for the development of the 550 Time Dubai TM tower.
The development team plans to begin mobilization of the project by 8th August 2008, aiming to complete the structure by 10th October 2010, and the handing over of apartments by 11th November 2011.
3600 Time World TM plans to build 24 Turning Timepiece mixed use developments (residential and hotel), that are sustainable, eco-friendly and unique signature buildings in leading cities of the world. On completion, these buildings will operate with the power of nature, in sync with the hour, offering a 24 hour world time view in real time. These eco-friendly buildings are likely to be located and named by the natural mathematical longitudinal line of the planets.
Labels: Business Tower, Dubai Real Estate, eco-friendly, Latest News
High demand for villas in Dubai, leads to 78% surge in prices
Sunday, June 22, 2008
The scarcity of villas in Dubai, has resulted in increased demand for villas, reports Collier International UAE.
According to the House Price Index (HPI) of Colliers International, the demand for villas have continued to remain high as against the demand for apartments and townhouses, and this has resulted in surge in prices of villas by 78%.
The CEO of Colliers International UAE, John Davis, says "Demand for villas have remained particularly high, given the relative scarcity of villas as against in the case of apartments. More dwellings are currently under construction, likely to be delivered by end of 2008 and in 2009. The villas constitute 21 percent of total mortgaged properties used to collate the index."
The quarterly overall villa index had increased throughout 2007 till the first quarter of 2008, with an 85 percent increase during the period, it has been reported. The average rate per square foot for villas in Dubai during the first quarter has been Dh.1338.
The growth of townhouses during the period was far slower than the apartments and villas. The annual index saw an increase by 29 percent, while apartments saw an increase by 82 percent. Townhouses constitute 15 percent of the total mortgaged properties.
Dubai saw an increase in the number of completed apartments being delivered into the market during first quarter of 2008, particularly in Dubai Marina, Downtown Burj Dubai and The Palm Jumeirah. This additional supply input available for purchase saw a positive affect on the average rate per square foot for apartments, increasing it to Dh.1841 during the first quarter.
The HPI index report includes details on built-up area of these properties and total value of transactions per month. Depending on coverage of thirteen developments in Dubai, the weighting has been given on the basis of unit type - apartments, villas and townhouses at the rate of 55 percent, 34 percent and 11 percent respectively.
The index reveals that property prices in foreign ownership zones continue to increase - driven by strong demand for properties from end-users. The reason behind the increased demand for these properties are due to factors such as the high growth in UAE economy, particularly in Dubai, with high growth rate being achieved at the rate of 11 percent per annum, and due to numerous profitable finance options being offered to residents and non-residents.
"The index report is across expatriate free zone, and the numbers are likely to grow. It is an on-going process over a period of time," Davis said.
As per the index, the high residential rates in Dubai, currently averaging at Dh.950 per square foot is getting more attractive and cost-effective for end-users. Further, the decline in value of dollar-pegged dirham, as against other global currencies has enhanced the attractiveness of the property in Dubai, particularly for expatriates.
Further surging construction costs are also causing an increase in sales price of newly launched developments in Dubai, with costs expected to rise by 18 to 20 percent towards end of the year, states the report.
Labels: Dubai Real Estate, Latest News
UAE realty market likely to stabilize by 2010
Saturday, June 21, 2008
The UAE property market will attain a demand-supply balance during 2010-2011, as vast supplies of properties are expected during the coming years, reveal recent reports.
The UAE realty market has seen major growth over the past couple of years, due to several factors at the micro and macro economic levels. However, the prices of real estate products is likely to increase during the coming years, with the high demand from expatriates, and due to increase in cost of labour and construction materials, says Bilal A Kanbar, Business Line Manager, Impaqta.
According to a property report released by a Saudi-based management advisory services company and Great Properties, a real estate sales and marketing agency, based in Dubai, the real estate boom in UAE is likely to face a major hindrance which will seriously affect completion of projects across the emirates.
As per the report, one major problem is the ready-mix concrete suppliers, struggling with huge backlog due to massive shortage in cement supplies. To add to this, the prices of cement and steel have surged by 50 and 70 percent respectively last year. Increasing labour costs, which has gone up by three times over last year, is another factor.
The report states that delay in delivery of new properties has resulted in rent and price increases, by 40 to 50 percent over the past couple of years in Dubai.
According to Kanbir, most projects are still under construction, and the next series of supply will hit the market by 2010, and this will is expected to bring in stabilization in property prices.
The UAE realty market has seen major growth over the past couple of years, due to several factors at the micro and macro economic levels. However, the prices of real estate products is likely to increase during the coming years, with the high demand from expatriates, and due to increase in cost of labour and construction materials, says Bilal A Kanbar, Business Line Manager, Impaqta.
According to a property report released by a Saudi-based management advisory services company and Great Properties, a real estate sales and marketing agency, based in Dubai, the real estate boom in UAE is likely to face a major hindrance which will seriously affect completion of projects across the emirates.
As per the report, one major problem is the ready-mix concrete suppliers, struggling with huge backlog due to massive shortage in cement supplies. To add to this, the prices of cement and steel have surged by 50 and 70 percent respectively last year. Increasing labour costs, which has gone up by three times over last year, is another factor.
The report states that delay in delivery of new properties has resulted in rent and price increases, by 40 to 50 percent over the past couple of years in Dubai.
According to Kanbir, most projects are still under construction, and the next series of supply will hit the market by 2010, and this will is expected to bring in stabilization in property prices.
Labels: Dubai Real Estate, Latest News, Market Trends
Define Properties forays into Dubai's realty sector
Tuesday, June 03, 2008
The latest entrant to the competitive realty market of Dubai is Define Properties. Define Properties has entered the Dubai real estate sector by acquiring 13 plots, with their first three project being already finalized at around Dh.8billion.With a capital of Dh.500 million, Define Properties has 12 plots at the Dubai Waterfront, and one at Business Bay. The company also owns assets worth Dh.1.7billion.
According to Tarek Kandil, the President and Chief Executive Officer of the company, a Dh.600 million project at Business Bay is already under progress.
The company's Nikki Lauda Twin Towers was sold just after the launch, and enabling and foundation works have already commenced. The project is likely to be ready by third quarter of 2010.
At present Define Properties is finalizing three projects at the Waterfront, which is totally worth Dh.8billion. The launch and construction will commence in seven months time.
The Director of Sales and Marketing at Define Properties, Walid Abdul Latif, revealed that among the three projects at the Waterfront, two are mixed-used projects and one is residential.
The company plans to focus on Dubai at present, and will expand to the rest of UAE and to the wider region in future.
Labels: Dubai Real Estate, Real Estate Company
Dubai office rents tenth most expensive in the world
Saturday, May 31, 2008
Office rents in Dubai have soared 30.7% during the past twelve months, making Dubai the tenth most expensive in the world, in fact, more expensive than New York's Manhattan, and could soon exceed those in the white hot Mumbai market, reports CB Richard Ellis (CBRE), a global commercial property services firm.
Mumbai rents had increased by just over 11.3% during the same period, and the city slipped down from the second to the fourth position in the world rankings.
The price per square foot this year in Dubai is $128.45, as against Mumbai at $210.97. An office for 30 people, based on 100 square feet per person, will now cost at $309,600 per year in Dubai, up from $294,960 about a year ago.
London's West End has once again been recorded as the most expensive office market in the world, followed by Moscow, Inner Central Five Wards of Mumbai, and Outer Central Five Wards of Tokyo.
On the whole, Europe, Middle East and Africa (EmeA) region dominated the list of world's fastest growing occupancy costs, accounting for five of the top ten, and nineteen out of the top fifty markets.
Worldwide, about 88% of the 173 office markets monitored, reported higher occupancy costs.
"Office occupancy costs are continuing to resist sluggish economic conditions, and the credit crunch, as they rise even faster than global inflation," said CBRE's global Chief Economist, Raymond Torto.
With the increase in cost being dominated by emerging markets, due to supple-demand imbalance, and dollar depreciation, the Class A office space is seriously lacking in few of these emerging markets.
Mumbai rents had increased by just over 11.3% during the same period, and the city slipped down from the second to the fourth position in the world rankings.
The price per square foot this year in Dubai is $128.45, as against Mumbai at $210.97. An office for 30 people, based on 100 square feet per person, will now cost at $309,600 per year in Dubai, up from $294,960 about a year ago.
London's West End has once again been recorded as the most expensive office market in the world, followed by Moscow, Inner Central Five Wards of Mumbai, and Outer Central Five Wards of Tokyo.
On the whole, Europe, Middle East and Africa (EmeA) region dominated the list of world's fastest growing occupancy costs, accounting for five of the top ten, and nineteen out of the top fifty markets.
Worldwide, about 88% of the 173 office markets monitored, reported higher occupancy costs.
"Office occupancy costs are continuing to resist sluggish economic conditions, and the credit crunch, as they rise even faster than global inflation," said CBRE's global Chief Economist, Raymond Torto.
With the increase in cost being dominated by emerging markets, due to supple-demand imbalance, and dollar depreciation, the Class A office space is seriously lacking in few of these emerging markets.
Labels: Dubai Real Estate, Office Space, Rentals
New global realty firm Property House launched in Dubai
Friday, May 30, 2008
A new $1billion global realty firm, Property House, which aims to establish itself as one of the top five realty companies in the region, was launched in Dubai last week.
With a landbank of about six million square feet in Dubai and Ajman, Property House plans to launch several new projects in UAE this year.
The Chief Executive Officer and Managing Director of Property House, Mohammad Nazir, said "Dubai is a market brimming with high yield potential. It has been said that development is the only constant thing in the real estate market, and Dubai, no doubt, is the best examples of this theory."
The General Project Manager of Property House, Amit Kochar, revealed that among the projects to be launched, the first two projects will be one residential and one commercial, out of which, one will be launched in Dubai next month.
The first residential project, will be worth Dh.250mn to Dh.500mn.
Property House has also invested heavily in the 115-acre Al Helio Downtown City of Ajman. This mini-city will be based on Chicago's and New York's grid system and aims to house 32000 residents and attracts an additional 24000 for work purposes.
Developed by South Korean developer, DSECO, the construction of the mini-city will commence this year and will be complete by 2013.
The company also announced future expansion plans to the rest of UAE.
With a landbank of about six million square feet in Dubai and Ajman, Property House plans to launch several new projects in UAE this year.
The Chief Executive Officer and Managing Director of Property House, Mohammad Nazir, said "Dubai is a market brimming with high yield potential. It has been said that development is the only constant thing in the real estate market, and Dubai, no doubt, is the best examples of this theory."
The General Project Manager of Property House, Amit Kochar, revealed that among the projects to be launched, the first two projects will be one residential and one commercial, out of which, one will be launched in Dubai next month.
The first residential project, will be worth Dh.250mn to Dh.500mn.
Property House has also invested heavily in the 115-acre Al Helio Downtown City of Ajman. This mini-city will be based on Chicago's and New York's grid system and aims to house 32000 residents and attracts an additional 24000 for work purposes.
Developed by South Korean developer, DSECO, the construction of the mini-city will commence this year and will be complete by 2013.
The company also announced future expansion plans to the rest of UAE.
Labels: Dubai Real Estate, Real Estate Company
Rental rates for residential units in Dubai found to be stable
Wednesday, April 23, 2008
UAE's largest real estate services company, Asteco, has observed that there has been no significant change in Dubai's annual rents, during the first quarter, compared to the annual rent rates during the last quarter of 2007, reveals their Quarterly Residential Report.
The highest annual rents have been recorded at the Palm Jumeirah and Old Town Burj Dubai, with studio and single bedroom annual rents standing at Dh.100,000 and Dh.140,000 respectively. On the other hand, the lowest rentals have been noticed at International City with studios available for Dh.42,000 and single bedrooms for Dh.58,000.
When compared on an annual basis, the rental charges were the highest at the Greens in Dubai, with studios recording an average annual rent of Dh.65,000 to Dh.85000, marking a 31% increase. But, the double bedroom units at the International City saw a 36% increase in rents from Dh.70,000 to Dh.95,000 during the same period last year.
Other areas that witnessed a year-on-year rental increase were the Old Town Burj Dubai real estate development, which reported 17% increase for single bedroom units and 21% increase for double bedroom apartments.
As for villas in Dubai, the rental rates are determined on the basis of location, size and condition with Midriff commanding the lowest rate, while Jumeirah marked the highest due to its close proximity to beach and Sheikh Zayed road. The average annual rent for a four bedroom villa at Mirdiff was marked at Dh.175,000, and a similar property at the Arabian Ranches and Jumeirah would rent at Dh.300,000.
When compared on an annual basis, the rental charges were the highest at the Greens in Dubai, with studios recording an average annual rent of Dh.65,000 to Dh.85000, marking a 31% increase. But, the double bedroom units at the International City saw a 36% increase in rents from Dh.70,000 to Dh.95,000 during the same period last year.
Other areas that witnessed a year-on-year rental increase were the Old Town Burj Dubai real estate development, which reported 17% increase for single bedroom units and 21% increase for double bedroom apartments.
As for villas in Dubai, the rental rates are determined on the basis of location, size and condition with Midriff commanding the lowest rate, while Jumeirah marked the highest due to its close proximity to beach and Sheikh Zayed road. The average annual rent for a four bedroom villa at Mirdiff was marked at Dh.175,000, and a similar property at the Arabian Ranches and Jumeirah would rent at Dh.300,000.
Labels: Dubai Real Estate, Latest News, Rentals
Dubai realty remains unabated despite fluctuations in other sectors
Thursday, April 10, 2008
The growth of real estate sector in Dubai remains protected from all other fluctuations currently happening in oil prices, whether short or medium term, and in fact, the higher oil prices will only stimulate the fast-paced growth.
The value of few of the realty projects in GCC, Iraq and Iran have crossed $750bn, and about 33% of this belongs to the UAE, particularly, Dubai. The figure is higher than the combined GDP (Gross Domestic Product) in the same region, which totals to less than $700bn.
Experts predict that this trend will continue, despite the fact that oil prices are likely to drop during the short and medium terms.
A strong point to be noted in the growth of Dubai is that it has been consistently defying all predictions by Analysts. Over the past five years, most experts predicted that the realty market in Dubai will begin to show a downward trend, and that it is a "bubble waiting to be burst".
Although it is agreed that such growth has never been sustainable for long, none is able to explain why the market continues to thrive in Dubai.
GCC has the 17th largest economy in the world, with 500,000 high-income earners and a GDP of $525 billion. The total half trillion dollar economy creates more than $500 billion in revenue, which is being used for investment. The volume is believed to boost the real estate and construction sector in Dubai.
The value of few of the realty projects in GCC, Iraq and Iran have crossed $750bn, and about 33% of this belongs to the UAE, particularly, Dubai. The figure is higher than the combined GDP (Gross Domestic Product) in the same region, which totals to less than $700bn.
Experts predict that this trend will continue, despite the fact that oil prices are likely to drop during the short and medium terms.
A strong point to be noted in the growth of Dubai is that it has been consistently defying all predictions by Analysts. Over the past five years, most experts predicted that the realty market in Dubai will begin to show a downward trend, and that it is a "bubble waiting to be burst".
Although it is agreed that such growth has never been sustainable for long, none is able to explain why the market continues to thrive in Dubai.
GCC has the 17th largest economy in the world, with 500,000 high-income earners and a GDP of $525 billion. The total half trillion dollar economy creates more than $500 billion in revenue, which is being used for investment. The volume is believed to boost the real estate and construction sector in Dubai.
Labels: Dubai Real Estate, Market Trends, Real Estate News
Dubai Properties to launch 50,000 low-budget homes
Saturday, March 29, 2008
A top official of Dubai Properties yesterday revealed the launch of 50,000 low-budget homes during the coming years, to meet the growing housing problem among the emirate's middle-income groups.
These affordable housing units will be a true mix of freehold and rental units, announced Mohammad Bin Braik, Chief Executive, Dubai Property Group.
"Although we are involved mainly in built-to-sell business, rental units give a continuous flow of guaranteed returns and provide necessary stability. We are not only building assets, but also building values for Dubai," said Bin Braik.
Dubai Properties has already built a sizeable housing project in Al Quoz area, which will soon be open for rent, he said, but is yet to elaborate on his plans for various housing schemes.
This seems to be good news for the 1.44 million population of the emirate, large numbers of who, stay in Ajman and Sharjah seeking cheaper alternatives, as most of the current projects cater only to high-income groups, leading to imbalance in the emirate's housing market.
House rent and increasing population continues to dominate the list of worries in Dubai, which has prompted the government to cap rents during recent years. A sudden growth in freehold market since 2002, led major developers to shift their focus from rental market to freehold sector. On the other hand demand continued to soar, pushing rents sky-high.
In the meanwhile, large numbers of government-built colonies and low-cost housings were demolished, reducing housing options for the middle-income and low-income groups.
Nakheel, a government-owned developer, has set up 'International City', considered as affordable housing.
According to a top property broker, the high rents at prevailing currently, are good enough to prompt developers to return to rental market, once the income rises up to the same level as that of freehold market.
These affordable housing units will be a true mix of freehold and rental units, announced Mohammad Bin Braik, Chief Executive, Dubai Property Group.
"Although we are involved mainly in built-to-sell business, rental units give a continuous flow of guaranteed returns and provide necessary stability. We are not only building assets, but also building values for Dubai," said Bin Braik.
Dubai Properties has already built a sizeable housing project in Al Quoz area, which will soon be open for rent, he said, but is yet to elaborate on his plans for various housing schemes.
This seems to be good news for the 1.44 million population of the emirate, large numbers of who, stay in Ajman and Sharjah seeking cheaper alternatives, as most of the current projects cater only to high-income groups, leading to imbalance in the emirate's housing market.
House rent and increasing population continues to dominate the list of worries in Dubai, which has prompted the government to cap rents during recent years. A sudden growth in freehold market since 2002, led major developers to shift their focus from rental market to freehold sector. On the other hand demand continued to soar, pushing rents sky-high.
In the meanwhile, large numbers of government-built colonies and low-cost housings were demolished, reducing housing options for the middle-income and low-income groups.
Nakheel, a government-owned developer, has set up 'International City', considered as affordable housing.
According to a top property broker, the high rents at prevailing currently, are good enough to prompt developers to return to rental market, once the income rises up to the same level as that of freehold market.
Labels: Dubai Real Estate, Real Estate News
Dubai records high real estate sales of Dh.2.28bn
Monday, February 25, 2008
The real estate sales in Dubai during the week touched Dh.2.28bn, according to Dubai Land Department.
The property transactions including villa, land and apartment sales were high between 17th and 20th February 2008. The land sales, particularly, was the highest on 20th Feb, 2008. The total amount of transactions on 20th February, alone, touched Dh.1.13million.
The total value of land sales during the period was Dh.2.17 billion, while the apartments recorded a sale of Dh.92.2 millions, and villas recorded a sale of Dh.9.5 million.
Highest land sale was registered at Emirates Hills First (Dh. 380 million), followed by Al Hamriya (Dh.350 million).
The total value of mortgage sales during the 19th and 20th February was Dh.998.07 million
The property transactions including villa, land and apartment sales were high between 17th and 20th February 2008. The land sales, particularly, was the highest on 20th Feb, 2008. The total amount of transactions on 20th February, alone, touched Dh.1.13million.
The total value of land sales during the period was Dh.2.17 billion, while the apartments recorded a sale of Dh.92.2 millions, and villas recorded a sale of Dh.9.5 million.
Highest land sale was registered at Emirates Hills First (Dh. 380 million), followed by Al Hamriya (Dh.350 million).
The total value of mortgage sales during the 19th and 20th February was Dh.998.07 million
Labels: Dubai Real Estate, Latest News, Sales
Dubai's International Property Show 2008 kicks-off
Tuesday, February 19, 2008
Dubai's International Property Show (IPS) 2008 kicked off yesterday, at the Dubai International Exhibition Center, and real estate developers in Dubai expecting multi-billion dollar investments.
Shaikh Hasher Maktoum, the Dubai Director of Information, who inaugurated the event, said "The regional property sector and the IPS have grown by 50 percent this year, which indicates the excellent potential of real estate market in the region. With the event continuing to reflect the real landscape of this industry with huge potential, the show has seen the presence of huge and diverse projects from all over the world, for years."
This year, the event expects to draw in atleast 27,000 visitors and exhibitors from about 200 real estate firms all over the globe.
IPS 2008 is expected to be the biggest in the region, probably due to high boost in investor confidence in the property market, due to the establishment of RERA (Real Estate Regulatory Authority). Few countries like Russia, Panama, Ireland, Iran and Saudi Arabia, will be participating in the event, this year, for the first time.
Hussain Sajwani, the Chairman of Damac Holding, the region's leading private sector real estate developer, said "This is another opportunity for us to display our world-class luxury projects and concepts. This is an opportunity for investors to learn in detail about our projects. This will be the right opportunity for the investors to learn more about the most luxurious real estate projects, such as Marina Bay in Abu Dhabi, Ocean Heights in Dubai, Al Jawharah in Jeddah, Business Heights in Amman or the Hyde Park in Cairo, among other luxurious projects of DAMAC."
The show is expected to conclude on 19th February 2008.
Shaikh Hasher Maktoum, the Dubai Director of Information, who inaugurated the event, said "The regional property sector and the IPS have grown by 50 percent this year, which indicates the excellent potential of real estate market in the region. With the event continuing to reflect the real landscape of this industry with huge potential, the show has seen the presence of huge and diverse projects from all over the world, for years."
This year, the event expects to draw in atleast 27,000 visitors and exhibitors from about 200 real estate firms all over the globe.
IPS 2008 is expected to be the biggest in the region, probably due to high boost in investor confidence in the property market, due to the establishment of RERA (Real Estate Regulatory Authority). Few countries like Russia, Panama, Ireland, Iran and Saudi Arabia, will be participating in the event, this year, for the first time.
Hussain Sajwani, the Chairman of Damac Holding, the region's leading private sector real estate developer, said "This is another opportunity for us to display our world-class luxury projects and concepts. This is an opportunity for investors to learn in detail about our projects. This will be the right opportunity for the investors to learn more about the most luxurious real estate projects, such as Marina Bay in Abu Dhabi, Ocean Heights in Dubai, Al Jawharah in Jeddah, Business Heights in Amman or the Hyde Park in Cairo, among other luxurious projects of DAMAC."
The show is expected to conclude on 19th February 2008.
Labels: Dubai Real Estate, Latest News, Property-show
Dubai Properties to lease commercial, residential and retail units
Saturday, February 16, 2008
Dubai Properties, the developer owned by Dubai government, have announced their plans to launch about 5000 commercial, residential and retail units from a vast range of projects for leasing this year.
Apart from this, Dubai Properties will open about 100 outlets at 'The Walk' in Jumeirah Beach Residence by April, including Mothercare, Fat Face, Starbucks, Subway, Boots, Damas, Giordano, Bata, Tips & Toes, and Al Rasasi. An additional 300 outlets will be opened by June, says a company statement.
The Chief Executive, Mohammad Bin Braik, said "Apart from developing unique communities, the Dubai Properties remains committed in ensuring the timely release of its completed units. Following the huge success last year, we look forward to a year of massive business expansion and project handovers."
He continued that, the commercial and residential units, and the launch of other new projects, will meet the increasing demand of the emirate. In the meanwhile, DP will lease about 2568 units out of the 2611 units, available in various areas in Dubai, including, Cordoba Villas, JBR, Dubai HealthCare City, Al Quoz Community, Housing and DP staff accommodation.
In 2007, the jumeirah Beach Residence was the first freehold project to be completed, when about 6500 apartments across 36 residential towers, were delivered, housing more than 2000 families.
The year 2008 will be another milestone for Dubai Properties, with 5028 flats, and villas, being added to its leasing portfolio in Mirdif areas, and additional units in the Office Park Building, Executive Towers, and Al Quoz Community Housing. With this, the total number of units for leasing at Dubai Properties will touch 7600 in number.
Apart from this, Dubai Properties will open about 100 outlets at 'The Walk' in Jumeirah Beach Residence by April, including Mothercare, Fat Face, Starbucks, Subway, Boots, Damas, Giordano, Bata, Tips & Toes, and Al Rasasi. An additional 300 outlets will be opened by June, says a company statement.
The Chief Executive, Mohammad Bin Braik, said "Apart from developing unique communities, the Dubai Properties remains committed in ensuring the timely release of its completed units. Following the huge success last year, we look forward to a year of massive business expansion and project handovers."
He continued that, the commercial and residential units, and the launch of other new projects, will meet the increasing demand of the emirate. In the meanwhile, DP will lease about 2568 units out of the 2611 units, available in various areas in Dubai, including, Cordoba Villas, JBR, Dubai HealthCare City, Al Quoz Community, Housing and DP staff accommodation.
In 2007, the jumeirah Beach Residence was the first freehold project to be completed, when about 6500 apartments across 36 residential towers, were delivered, housing more than 2000 families.
The year 2008 will be another milestone for Dubai Properties, with 5028 flats, and villas, being added to its leasing portfolio in Mirdif areas, and additional units in the Office Park Building, Executive Towers, and Al Quoz Community Housing. With this, the total number of units for leasing at Dubai Properties will touch 7600 in number.
Labels: Dubai Real Estate, Real Estate News
ACI launches Michael Schumacher business tower in Dubai
Saturday, February 09, 2008
A prestigious business tower, "Michael Schumacher Business Avenue" has been launched by ACI Real Estate in Business Bay, Dubai. ACI is an affiliate of Alternative Capital Invest Gmbh, a leading alternative investment solution firm.
The tower is the second phase of the sports-branded real estate project by ACI, which is an ambitious plan to transform the Business Bay district into an architectural delight, defined by three spectacular towers, each of which are named after legendary sports super-stars.
The Business Avenue offer prominent office spaces with eye-catching views of Burj Dubai, the world's tallest building. The tower also houses the first Michael Schumacher Business Center that offers hi-tech facilities, with state-of-the-art design that matches international standards.
The launch of the business tower is the second in a series of three projects, introduced into the market by ACI. The Niki Lauda Twin Tower has been already launched last month, and Boris Becker Business Tower, is next in line to be launched in February 2008.
The tower was launched by the Seven-time Formula One World Champion, Michael Schumacher himself. Speaking on the occasion of the launch, the Managing Director of ACI, Robin Lohmann, said that only few properties in the world can boast about the direct involvement from the greatest F1 driver in the world. Michael Schumacher represents the commitment and energy to excel, and the ambition required for every business enterprise to reach the top position, and only a city like Dubai, befits such an association.
The tower is the second phase of the sports-branded real estate project by ACI, which is an ambitious plan to transform the Business Bay district into an architectural delight, defined by three spectacular towers, each of which are named after legendary sports super-stars.
The Business Avenue offer prominent office spaces with eye-catching views of Burj Dubai, the world's tallest building. The tower also houses the first Michael Schumacher Business Center that offers hi-tech facilities, with state-of-the-art design that matches international standards.
The launch of the business tower is the second in a series of three projects, introduced into the market by ACI. The Niki Lauda Twin Tower has been already launched last month, and Boris Becker Business Tower, is next in line to be launched in February 2008.
The tower was launched by the Seven-time Formula One World Champion, Michael Schumacher himself. Speaking on the occasion of the launch, the Managing Director of ACI, Robin Lohmann, said that only few properties in the world can boast about the direct involvement from the greatest F1 driver in the world. Michael Schumacher represents the commitment and energy to excel, and the ambition required for every business enterprise to reach the top position, and only a city like Dubai, befits such an association.
Labels: Business Bay, Business Tower, Dubai Real Estate
Dubai realty market likely to be world's second most expensive, in 2008
Thursday, February 07, 2008
The shortage of housing supply, coupled with unprecedented increase in realty prices in 2008, will make Dubai realty market, the second most expensive in the world, only next to West End of London, reports HC Securities Brokerage.
The Egypt-based brokerage, in its Economy Watch Bulletin, reported that increasing growth rates have enabled expatriates with the means to rent houses at high rates, and the situation is quite unlikely to be resolved this year too, as the market would continue to experience shortage in supply of housing units.
The caps by Government have been unable to address the surge in inflation caused due to rapid increase in rents across the region. The HC Securities state that with the GCC rents forecast, further set to increase by 20% this year, the rents in Dubai were capped at 15% in 2006, and the rates are lowered to 5% this December.
"However, the increase in rent rates is backfiring greatly on the rate of inflation. If the main reason behind mounting inflation is skyrocketing rent rates, we note that limiting the rent prices do not seem to have solved the problem," said HC Securities.
The Egypt-based brokerage, in its Economy Watch Bulletin, reported that increasing growth rates have enabled expatriates with the means to rent houses at high rates, and the situation is quite unlikely to be resolved this year too, as the market would continue to experience shortage in supply of housing units.
The caps by Government have been unable to address the surge in inflation caused due to rapid increase in rents across the region. The HC Securities state that with the GCC rents forecast, further set to increase by 20% this year, the rents in Dubai were capped at 15% in 2006, and the rates are lowered to 5% this December.
"However, the increase in rent rates is backfiring greatly on the rate of inflation. If the main reason behind mounting inflation is skyrocketing rent rates, we note that limiting the rent prices do not seem to have solved the problem," said HC Securities.
Labels: Dubai Real Estate, Market Trends, Property Prices
Nakheel's Al Furjan plots handed-over ahead of schedule
Sunday, February 03, 2008
Nakheel has commenced handing over of the Al Furjan plots to the purchases, much ahead of schedule.
Al Furjan is a family-oriented community development, located south of Ibn Battuta Mall, in close proximity to The Gardens and the Discovery Gardens. About 70 commercial and residential apartment plots with sizes ranging from 3000 to 5000 square meters have already been handed over to its purchasers from beginning 25th December, although, the handover was due only on 2nd March 2008.
This follows the successful launch of Al Furjan Phase 1, which was completely sold out within few days of launch. Al Furjan comprises four communities, with individual neighbourhood centers, along with other amenities such as schools, being located within walking distance from homes.
"This is a significant achievement for the Al Furjan team, whose, hard work ensured delivery of the plots prior to official hand-over date. This also marks a major milestone in Al Furjan's progress, and we are excited to deliver these plots much ahead of schedule," said Mohammed Rashed bin Dhabeah, Director, Al Furjan and Jebel Ali Village.
Al Furjan, which means "a collection of houses or a small village", on its completion, will have about 4000 homes, apart from hotels, apartments, commercial and mixed-use plots, all in the developments, which will surround Al Furjan, housing a population of 90,000, the developer confirmed.
Al Furjan is a family-oriented community development, located south of Ibn Battuta Mall, in close proximity to The Gardens and the Discovery Gardens. About 70 commercial and residential apartment plots with sizes ranging from 3000 to 5000 square meters have already been handed over to its purchasers from beginning 25th December, although, the handover was due only on 2nd March 2008.
This follows the successful launch of Al Furjan Phase 1, which was completely sold out within few days of launch. Al Furjan comprises four communities, with individual neighbourhood centers, along with other amenities such as schools, being located within walking distance from homes.
"This is a significant achievement for the Al Furjan team, whose, hard work ensured delivery of the plots prior to official hand-over date. This also marks a major milestone in Al Furjan's progress, and we are excited to deliver these plots much ahead of schedule," said Mohammed Rashed bin Dhabeah, Director, Al Furjan and Jebel Ali Village.
Al Furjan, which means "a collection of houses or a small village", on its completion, will have about 4000 homes, apart from hotels, apartments, commercial and mixed-use plots, all in the developments, which will surround Al Furjan, housing a population of 90,000, the developer confirmed.
Labels: Community, Dubai Real Estate, Nakheel, Residential
DLD approves First Gulf Bank to open and manage Escrow Accounts
Tuesday, January 29, 2008
The Dubai Land Department (DLD) has granted permission to the First Gulf Bank to open Escrow Accounts for the registered property developers of the department. The DLD is the 'only' real estate title registry in the emirate to approve the Bank to open and manage Escrow Accounts.
The Escrow Accounts that are operated by the First Gulf Bank will be regulated by RERA (Real Estate Regulatory Authority) which currently licenses about 400 developers in the Dubai market, and is the authority behind implementing the new escrow account law.
The Head of National Housing Loans, at the First Gulf Bank, Al Ghafli, said "The new RERA rules are a major step ahead in the maturing Dubai market. These rules protect the interest of both developers and buyers, while the investors feel secure that their funds are safely deposited by a reputable financial institution, like the First Gulf Bank."
First Gulf Bank has a good reputation in the real estate segment within UAE, offering a range of financial solutions to investors and developers alike. The Escrow Account Law was issued by the Dubai Government last year, aiming to control the malpractices by property developers, and enhance the standard of the Dubai real estate market.
The Escrow Accounts that are operated by the First Gulf Bank will be regulated by RERA (Real Estate Regulatory Authority) which currently licenses about 400 developers in the Dubai market, and is the authority behind implementing the new escrow account law.
The Head of National Housing Loans, at the First Gulf Bank, Al Ghafli, said "The new RERA rules are a major step ahead in the maturing Dubai market. These rules protect the interest of both developers and buyers, while the investors feel secure that their funds are safely deposited by a reputable financial institution, like the First Gulf Bank."
First Gulf Bank has a good reputation in the real estate segment within UAE, offering a range of financial solutions to investors and developers alike. The Escrow Account Law was issued by the Dubai Government last year, aiming to control the malpractices by property developers, and enhance the standard of the Dubai real estate market.
Labels: Dubai Real Estate, Mortgages, Property Law
New Codominium Law brings relief to home-owners
Wednesday, January 23, 2008
A senior government official has revealed that, as per the new Condominium Law, the property owners have been assigned the responsibility of levying service charge on freehold premises. Hence master developers will no longer be able to levy exorbitant service charges on freehold premises.
The Article No.22 of the Condominium Law (Law N0.27 of 2007) states "The owner of each unit shall pay to the Owners Association, his share of yearly service fee to cover the cost of management, maintenance, operation and repair of common parts."
This share will be defined on the basis of the area per unit, out of total area of joint property. The developer, irrespective of being main or subsidiary, will have to pay its share of fee for unsold units. No owner of any unit will be allowed to give up his share of common parts to avoid paying the yearly service fee, states the article.
At present, the master developers and property developers of individual towers who are developing major neighbourhoods in the freehold and leasehold areas in Dubai, are fixing and levying service charges at the rate of Dh.8 to Dh.12 per square feet, which is considered very high. This has led to conflict between home owners and master developers are freehold areas.
As there have not been any proper laws, some developers have levied even higher charges which have led to discontent of the buyers. With the new Condominium Law in place, the situation is expected to change for the better, as property buyers can dictate and fix service charges of their own premises, rather than depending on the developer.
The Condominium Law, which compliments the freehold Property Registration Law, is also expected to help facilities management sector and the maintenance firms, as it will open up freehold neighbourhoods for competition, which have been otherwise, so far, monopolized only by master developers.
The Article No.22 of the Condominium Law (Law N0.27 of 2007) states "The owner of each unit shall pay to the Owners Association, his share of yearly service fee to cover the cost of management, maintenance, operation and repair of common parts."
This share will be defined on the basis of the area per unit, out of total area of joint property. The developer, irrespective of being main or subsidiary, will have to pay its share of fee for unsold units. No owner of any unit will be allowed to give up his share of common parts to avoid paying the yearly service fee, states the article.
At present, the master developers and property developers of individual towers who are developing major neighbourhoods in the freehold and leasehold areas in Dubai, are fixing and levying service charges at the rate of Dh.8 to Dh.12 per square feet, which is considered very high. This has led to conflict between home owners and master developers are freehold areas.
As there have not been any proper laws, some developers have levied even higher charges which have led to discontent of the buyers. With the new Condominium Law in place, the situation is expected to change for the better, as property buyers can dictate and fix service charges of their own premises, rather than depending on the developer.
The Condominium Law, which compliments the freehold Property Registration Law, is also expected to help facilities management sector and the maintenance firms, as it will open up freehold neighbourhoods for competition, which have been otherwise, so far, monopolized only by master developers.
Labels: Dubai Real Estate, Property Law
New tenancy law to be introduced in Dubai shortly
Thursday, January 17, 2008
The Dubai Government is shortly expected to announce a tenancy law, that will re-define the landlord-tenant relationship, while also managing the rent disputes, and a comprehensive legal framework would be introduced, for the booming residential rental market in Dubai, said a top government official yesterday.
At the moment, it is the responsibility of Rents Committee to settle disputes through an informal arbitration system. This is likely to be replaced by a new tenancy law, which has been already approved by H.H. Shaikh Mohammad Bin Rashid Al Maktoum, the Vice President, Prime Minister of UAE and Ruler of Dubai.
The Assistant Director General of Dubai Land Department, Mohammad Sultant Thani said that all issues pertaining to rents, tenancy, bachelor accommodation, subletting, landlord-tenant disputes and all other social aspects, will be tackled by the new law. However, whether the rent cap too, will be regulated through the new law, is yet to be known.
Increasing rents have been a big cause of worry for nearly 85 percent of Dubai's expatriates, who form 1.44million of population, a majority of whom live in rental units. During the past few years, rents have hiked rampantly.
In the meanwhile, Thani revealed that so far, the Dubai Land Department, has registered 72,000 units ever-since the department was established in 1960s, while last year, we have registered 11,000 units.
Thani mentioned that the new law will further strengthen the Dubai property market, as there has been a steady growth in the property market ever-since expatriates were allowed to own property. Once the law takes effect, all existing freehold apartments, residential units and villas for rent, will come under the law.
At the moment, it is the responsibility of Rents Committee to settle disputes through an informal arbitration system. This is likely to be replaced by a new tenancy law, which has been already approved by H.H. Shaikh Mohammad Bin Rashid Al Maktoum, the Vice President, Prime Minister of UAE and Ruler of Dubai.
The Assistant Director General of Dubai Land Department, Mohammad Sultant Thani said that all issues pertaining to rents, tenancy, bachelor accommodation, subletting, landlord-tenant disputes and all other social aspects, will be tackled by the new law. However, whether the rent cap too, will be regulated through the new law, is yet to be known.
Increasing rents have been a big cause of worry for nearly 85 percent of Dubai's expatriates, who form 1.44million of population, a majority of whom live in rental units. During the past few years, rents have hiked rampantly.
In the meanwhile, Thani revealed that so far, the Dubai Land Department, has registered 72,000 units ever-since the department was established in 1960s, while last year, we have registered 11,000 units.
Thani mentioned that the new law will further strengthen the Dubai property market, as there has been a steady growth in the property market ever-since expatriates were allowed to own property. Once the law takes effect, all existing freehold apartments, residential units and villas for rent, will come under the law.
Labels: Dubai Real Estate, Latest News, Property Law, Rentals
Dubai to release Property Index with a view to curb high rentals
Sunday, January 13, 2008
A new property index will soon be released in Dubai, which would be of help in establishing appropriate rents for properties in the emirate, so as to control the shooting rental prices.
The Real Estate Regulatory Authority (RERA), has said that the new index would come into effect from 15th of this month, setting up the minimum and maximum chargeable rents for properties in particular developments.
With the introduction of property index, the landlords are left with no choice but to set rents within the stipulated limits. The tenants and those in the look out for rentals, will also be benefitted as it will serve as a guide to ensure that they are not being overcharged. Any complaints thereafter could be then reported to the rental dispute committee.
Dubai has issued an annual rent cap of 5% for 2008, which is lesser in comparison to the 7% capping of 2007.
The Real Estate Regulatory Authority (RERA), has said that the new index would come into effect from 15th of this month, setting up the minimum and maximum chargeable rents for properties in particular developments.
With the introduction of property index, the landlords are left with no choice but to set rents within the stipulated limits. The tenants and those in the look out for rentals, will also be benefitted as it will serve as a guide to ensure that they are not being overcharged. Any complaints thereafter could be then reported to the rental dispute committee.
Dubai has issued an annual rent cap of 5% for 2008, which is lesser in comparison to the 7% capping of 2007.
Labels: Dubai Real Estate, Property Law, Rentals
Dubai rents to be capped by 5% in 2008
Thursday, January 03, 2008
The Vice President and Prime Minister of UAE and Ruler of Dubai, H.H. Shekh Mohammad bin Rashid Al Maktoum, has issued a decree on 27th December 2007, lowering the annual rent cap in Dubai by 5% from the existing 7%, beginning 1st January, 2008. This rent cap would be implemented by the RERA (Real Estate Regulatory Authority) and the Dubai Land Department (DLD) in 2008.
This new rent cap would be applicable to new tenants, whose rents were not increased last year. However, for those tenants, who have had a rental increase in 2007, there will be no new increase.
At present, Ras Al Khaimah and Fujairah have both had a rent cap of 15%, while Abu Dhabi maintained 7% rent cap.
This move by the Dubai government has been much appreciated by the residents, realty developers and brokers, as strong demand and lack of adequate supply, had increased rents tremendously during recent past, which is a cause of concern among residents in Dubai.
The RERA Chief Executive, Marwan bin Ghalita, has warned that any increase beyond the proposed cap, is in violation of the rule, and in such a case, tenants should not agree to sign the contract.
This new rent cap would be applicable to new tenants, whose rents were not increased last year. However, for those tenants, who have had a rental increase in 2007, there will be no new increase.
At present, Ras Al Khaimah and Fujairah have both had a rent cap of 15%, while Abu Dhabi maintained 7% rent cap.
This move by the Dubai government has been much appreciated by the residents, realty developers and brokers, as strong demand and lack of adequate supply, had increased rents tremendously during recent past, which is a cause of concern among residents in Dubai.
The RERA Chief Executive, Marwan bin Ghalita, has warned that any increase beyond the proposed cap, is in violation of the rule, and in such a case, tenants should not agree to sign the contract.
Labels: Dubai Real Estate, Latest News, Property Law, Rentals
RERA announces first list of Real Estate developers in Dubai
Going by the Law No.9 of 2007, the Real Estate Regulatory Agency (RERA) has announced its first list of realty developers that includes more than 400 companies holding real estate developer license, thereby maintaining transparency in Dubai. However, it has been said that a few companies, which had earlier entered into a special one-to-one agreement, has been exempted from opening the project security accounts.
RERA usually grants permission to licensed companies and projects, for opening of project security accounts, according to special agreement. The investors have been warned against purchasing or investing on real estate companies that do not hold the necessary Agency license required by the real estate companies, for legal transactions.
The Chief Executive of RERA, Marwan bin Galita, has said that unlicensed companies would have major difficulties in marketing and selling their projects, through media outlets, once the list has been issued.
RERA usually grants permission to licensed companies and projects, for opening of project security accounts, according to special agreement. The investors have been warned against purchasing or investing on real estate companies that do not hold the necessary Agency license required by the real estate companies, for legal transactions.
The Chief Executive of RERA, Marwan bin Galita, has said that unlicensed companies would have major difficulties in marketing and selling their projects, through media outlets, once the list has been issued.
Labels: Dubai Real Estate, Real Estate News
Office Rents in Dubai, Doha to surge by 20%
Monday, December 17, 2007
The office rents in Dubai, and Doha are likely to go up by 20% next year, as the demand surpasses supply, and due to the expansion of international business in the Gulf region, revealed the property services company, CB Richard Ellis.
"The top-quality offices in Dubai, cost as much as Dh.500 per square foot, and this in-turn could increase prices to Dh.600 per square feet next year, which would continue for 18 months, and thereafter the prices may probably halve to about Dh.300 per square foot in another five or six years with an increase in market supply" says Nicholas Maclean, the Managing Director, CB Richard Ellis.
However, at present, there are not enough supplies reaching the market, which would do no good to the businesses or for the government.
As far as Doha property is concerned, the demand is increasing, with an expansion in oil and gas companies, and the government is seeking new space. Although, the prices in Doha are lower than that in Dubai, the trends are the same.
On the other hand cities in India, Egypt, and Philippines are gaining advantage from the rising prices, as businesses turn to them for back-office operations, said Maclean.
The office space in Dubai is likely to more than triple touching 100 million square feet, as against the present 30million, during the next five to six years, Maclean concluded.
"The top-quality offices in Dubai, cost as much as Dh.500 per square foot, and this in-turn could increase prices to Dh.600 per square feet next year, which would continue for 18 months, and thereafter the prices may probably halve to about Dh.300 per square foot in another five or six years with an increase in market supply" says Nicholas Maclean, the Managing Director, CB Richard Ellis.
However, at present, there are not enough supplies reaching the market, which would do no good to the businesses or for the government.
As far as Doha property is concerned, the demand is increasing, with an expansion in oil and gas companies, and the government is seeking new space. Although, the prices in Doha are lower than that in Dubai, the trends are the same.
On the other hand cities in India, Egypt, and Philippines are gaining advantage from the rising prices, as businesses turn to them for back-office operations, said Maclean.
The office space in Dubai is likely to more than triple touching 100 million square feet, as against the present 30million, during the next five to six years, Maclean concluded.
Labels: Dubai Real Estate, Market Trends, Office Space, Rentals
Dubai property prices unlikely to stabilize in next few years
Sunday, December 09, 2007
The real estate prices in Dubai are unlikely to stabilize during the next five years, in case the rent-cap is not lifted, and if the government does not take initiative to implement measures that could contribute in improving the supply market, say experts.
A study of the Dubai real estate sector by the Dubai Chamber of Commerce and Industry (DCCI) revealed that demand and supply of real estate will reach equilibrium only in 2023, provided, the government does not interfere or bring in new policies.
The Director of DCCI's Data Management and Business Research, Dr. Belaid Rettab, said "Equillibrium is when demand meets supply, and the prices remain stable."
Imposing rent cap, apart from delaying the process of stabilizing the market, will not be able to address price hikes too. Being supporters of liberal business, we do not prefer to have rent caps. The simplest solution to prevent price hikes is to bring in more supply to the market. The government, apart from supporting development of mortgage sectors, will also have to arrange finance facilities to developers so that they could build more, Rettab said.
The DCCI study revealed that the property prices have increased by a 10 percent cumulative annual growth rate in the medium term. The long term increase was 4 percent, which translates itself into an average price hike of seven percent, equivalent to the current rent cap imposed by Dubai government.
The DCCI study revealed that the government policies will positively influence income, population, cost, financing availability, tastes and preferences of buyers and speculation of future prices that could contribute to increase in demand.
The increase in supply will depend on the financing, production inputs cost, construction technology and expectation of future demand.
A study of the Dubai real estate sector by the Dubai Chamber of Commerce and Industry (DCCI) revealed that demand and supply of real estate will reach equilibrium only in 2023, provided, the government does not interfere or bring in new policies.The Director of DCCI's Data Management and Business Research, Dr. Belaid Rettab, said "Equillibrium is when demand meets supply, and the prices remain stable."
Imposing rent cap, apart from delaying the process of stabilizing the market, will not be able to address price hikes too. Being supporters of liberal business, we do not prefer to have rent caps. The simplest solution to prevent price hikes is to bring in more supply to the market. The government, apart from supporting development of mortgage sectors, will also have to arrange finance facilities to developers so that they could build more, Rettab said.
The DCCI study revealed that the property prices have increased by a 10 percent cumulative annual growth rate in the medium term. The long term increase was 4 percent, which translates itself into an average price hike of seven percent, equivalent to the current rent cap imposed by Dubai government.
The DCCI study revealed that the government policies will positively influence income, population, cost, financing availability, tastes and preferences of buyers and speculation of future prices that could contribute to increase in demand.
The increase in supply will depend on the financing, production inputs cost, construction technology and expectation of future demand.
Labels: Dubai Real Estate, Market Trends, Mortgages, Property Prices
Al Manal Development- first company to issue Pre-registration Certificates
Thursday, December 06, 2007
Al Manal Development is the first company to issue the Pre-registration Certificate for its La Vista Residence project, in line with the recently introduced new system by the Real Estate Regulatory Authority (RERA).
The Chairman of Al Manal Development, Juma Al Ghurair, said that after being the first to implement the Escrow Account Law, Al Manal, is now, the first to issue the Pre-Registration Certificate.
He said that Dubai, being a competitor in a world market, the business practices and laws should be the best, if it wishes to increase its international property investment. The creation of RERA, and introduction of new laws, has generated stability in the market, which would benefit investors and developers alike.
RERA, which covers three areas, permits developers to input all pre-sale, change of ownership and mortgage activities. The Pre-sale category includes full registration of buyer's information, property details, and the amount sold for. The mortgage section is filled in on completion of pre-registration, and will include the mortgage plan, which is chosen and approved by the buyer. The Change in ownership section will include updates of any change of ownership that RERA and the property developer can keep track of.
The Chairman of Al Manal Development, Juma Al Ghurair, said that after being the first to implement the Escrow Account Law, Al Manal, is now, the first to issue the Pre-Registration Certificate.
He said that Dubai, being a competitor in a world market, the business practices and laws should be the best, if it wishes to increase its international property investment. The creation of RERA, and introduction of new laws, has generated stability in the market, which would benefit investors and developers alike.
RERA, which covers three areas, permits developers to input all pre-sale, change of ownership and mortgage activities. The Pre-sale category includes full registration of buyer's information, property details, and the amount sold for. The mortgage section is filled in on completion of pre-registration, and will include the mortgage plan, which is chosen and approved by the buyer. The Change in ownership section will include updates of any change of ownership that RERA and the property developer can keep track of.
RERA, Chief Executive Officer, Marwin bin Gholaitah, said that the pre-registration system would provide more credibility to developers, and create better trust between developers and customers, as the information regarding property would be safely registered in a secure system, approved by RERA.
Labels: Dubai Real Estate, Property Law
UAE Realty to grow beyond 2015
Wednesday, December 05, 2007
As per two recent studies by Damac Capital International and HSBC, the UAE, which accounts for more than sixty percent of the real estate development in the region, is expected to experience the realty boom beyond 2015.
Analysts forecast that Dubai, which continues to experience major demand would continue to surpass supply for a couple of years more, while the Abu Dhabi market, is expected to pick up and maintain high rental yields beyond seven percent until 2013.
The analysts of Damac Capital, Pamela Chikhani and Hany Seif, predicts that although the Dubai property market signifies only a small fraction of global market, it will continue to be a major force in the regional real estate investment.
Asteco, a Dubai-based realty agent, reveals that the Dubai property market accounts for 47 percent of the entire GCC market. Abu Dhabi is a distant second with 14 percent. Hence both Dubai and Abu Dhabi put together, account for more than 60 percent of GCC real estate market.
It has been estimated that within the next decade realty investors would pump in about $300bn into Dubai's real estate developments.
However, HSBC's Analysts believe that, Abu Dhabi emirate would establish itself as a new regional real estate market, as the sales activity has picked up this year, and the market remains very tight with stronger-than-expected growth in prices and rents.
Analysts forecast that Dubai, which continues to experience major demand would continue to surpass supply for a couple of years more, while the Abu Dhabi market, is expected to pick up and maintain high rental yields beyond seven percent until 2013.
The analysts of Damac Capital, Pamela Chikhani and Hany Seif, predicts that although the Dubai property market signifies only a small fraction of global market, it will continue to be a major force in the regional real estate investment.
Asteco, a Dubai-based realty agent, reveals that the Dubai property market accounts for 47 percent of the entire GCC market. Abu Dhabi is a distant second with 14 percent. Hence both Dubai and Abu Dhabi put together, account for more than 60 percent of GCC real estate market.
It has been estimated that within the next decade realty investors would pump in about $300bn into Dubai's real estate developments.
However, HSBC's Analysts believe that, Abu Dhabi emirate would establish itself as a new regional real estate market, as the sales activity has picked up this year, and the market remains very tight with stronger-than-expected growth in prices and rents.
Labels: Dubai Real Estate, Market Trends, UAE
Maritime City announces complete sale of phase one plots in Maritime Complex
Thursday, November 22, 2007
The world's first purpose-built Maritime Center, and a member of Dubai World Group of Companies, the Dubai Maritime City has announced recent sale of its first phase plots of the massive commercial and residential districts of its Maritime Complex to contractors and developers.
The work on various commercial and residential projects within the city will begin in near future. The developers are required to obtain the 'Green Building Certificate' for their projects, as per the developmental policies and strict environmental standards of Dubai Maritime City.
The CEO of Dubai Maritime City, Amer Ali, said "The sales performance of the first phase of the project has surpassed expectations with tremendous response due to the huge project value in terms of excellence and creativity, as well as being the first of its kind in the world and in the region. "
He also expressed his pleasure over the steady economic potential of the project, which is sufficient proof of success of Maritime City.
The work on various commercial and residential projects within the city will begin in near future. The developers are required to obtain the 'Green Building Certificate' for their projects, as per the developmental policies and strict environmental standards of Dubai Maritime City.
The CEO of Dubai Maritime City, Amer Ali, said "The sales performance of the first phase of the project has surpassed expectations with tremendous response due to the huge project value in terms of excellence and creativity, as well as being the first of its kind in the world and in the region. "
He also expressed his pleasure over the steady economic potential of the project, which is sufficient proof of success of Maritime City.
Labels: Dubai Real Estate, Latest News, Sales
Dubai recorded Dh.10.22bn worth land transactions last month
Sunday, November 04, 2007
The total value of land transactions in Dubai touched Dh.10.22bn in October, according to Dubai Land Department.
Out of the total 395 cash sales that happened during the month, these transactions were worth Dh.6.03bn, out of which Dh.3.49bn were from mortgage trasactions, and Dh.693.49million were from donation of land and property.
The Land Department in Dubai, registered 395 transactions during the month of October, across 61 districts in Dubai. The total area sold was about 9.24 million square feet. About 354 transactions involved the sale of developed or built land.
Al Jadaf recorded the top selling district, generating 18.28 percent of sales during October.
Out of the total 395 cash sales that happened during the month, these transactions were worth Dh.6.03bn, out of which Dh.3.49bn were from mortgage trasactions, and Dh.693.49million were from donation of land and property.
The Land Department in Dubai, registered 395 transactions during the month of October, across 61 districts in Dubai. The total area sold was about 9.24 million square feet. About 354 transactions involved the sale of developed or built land.
Al Jadaf recorded the top selling district, generating 18.28 percent of sales during October.
Labels: Dubai Real Estate, land, Sales
Dubai Government awards land worth Dh.280m to Dubai Financial Market
Friday, November 02, 2007
The Dubai Government has awarded a land grant, measuring 390,000 square feet, worth Dh.280 million to the Dubai Financial Market (DFM). Based on the directives by the Dubai Government, Dubai Properties, a leading real estate developer in Dubai, will set aside a land plot in their Business Bay project exclusively to DFM.
The land plot, covering 390,000 square feet in area, overlooks the waterfront in Business Bay, from three angles. The DFM plans to use the plot for construction of its main building, housing the future head quarters of DFM.
Spreading over an area of 43,500 square meters, the new headquarters will upgrade and replace the current DFM facilities. The DFM development in Business Bay will comprise a three storey tower, including a main trading floor with 120 broker offices, when compared to the existing 58 offices. The new facilities will also include press rooms, VIP areas, meeting and conference rooms, cafes and restaurants.
The Chairman for Dubai Financial Market, Essa Kazim, expressing his appreciation to H.H. Sheikh Mohammed bin Rashid Al Maktoum, said that this generous grant by the Dubai Government confirms the leading initiatives taken by him, which has always resulted in high achievements and prosperity to the residents and nationals of the UAE, and particularly to the shareholders in DFM.
The land plot, covering 390,000 square feet in area, overlooks the waterfront in Business Bay, from three angles. The DFM plans to use the plot for construction of its main building, housing the future head quarters of DFM.
Spreading over an area of 43,500 square meters, the new headquarters will upgrade and replace the current DFM facilities. The DFM development in Business Bay will comprise a three storey tower, including a main trading floor with 120 broker offices, when compared to the existing 58 offices. The new facilities will also include press rooms, VIP areas, meeting and conference rooms, cafes and restaurants.
The Chairman for Dubai Financial Market, Essa Kazim, expressing his appreciation to H.H. Sheikh Mohammed bin Rashid Al Maktoum, said that this generous grant by the Dubai Government confirms the leading initiatives taken by him, which has always resulted in high achievements and prosperity to the residents and nationals of the UAE, and particularly to the shareholders in DFM.
Labels: Business Bay, Dubai Real Estate, Latest News
Dubai Maritime City project emphasizes on the green concept
Friday, October 26, 2007
The first purpose-built maritime center in the world, and a member of Dubai World Group of companies, the Dubai Maritime City (DMC), has instructed all its developers and contractors to include the concept of green in the construction and designing of all developments within the city, so as to ensure strict environmental and long-term sustainability.
As per the Maritime City's Master Plan, all developers are required to obtain the green building certification under BREEAM (BRE Environmental Assessment Method) or LEED (Leadership in Energy and Environmental Design). Thereafter, all the buildings within the Maritime City will be reviewed to assess the level of compliance with the environmental requirements in terms of operations, design and best practices.
The green building design will mainly focus on energy consumption and conservation measures such as minimal use of non-renewable sources, minimal production of indoor environmental waste, and use of solar energy.
The final phase of construction work on the Dubai Maritime City is currently in progress and involves infrastructural development. On completion of works in 2009, DMC will house the Maritime Center, Harbour residences, Harbour offices, an Academic Quarter, a Marina District, and Jadaf Dubai, and industrial quarter.
The CEO of Dubai Maritime City, Amer Ali, said "It is imperative that implementation of strict environmental standards be maintained, as the concept of green offers considerable long-tern investment returns, while also ensuring optimized living and working conditions protecting health of the occupants and effective utilization of resources."
As per the Maritime City's Master Plan, all developers are required to obtain the green building certification under BREEAM (BRE Environmental Assessment Method) or LEED (Leadership in Energy and Environmental Design). Thereafter, all the buildings within the Maritime City will be reviewed to assess the level of compliance with the environmental requirements in terms of operations, design and best practices.
The green building design will mainly focus on energy consumption and conservation measures such as minimal use of non-renewable sources, minimal production of indoor environmental waste, and use of solar energy.
The final phase of construction work on the Dubai Maritime City is currently in progress and involves infrastructural development. On completion of works in 2009, DMC will house the Maritime Center, Harbour residences, Harbour offices, an Academic Quarter, a Marina District, and Jadaf Dubai, and industrial quarter.
The CEO of Dubai Maritime City, Amer Ali, said "It is imperative that implementation of strict environmental standards be maintained, as the concept of green offers considerable long-tern investment returns, while also ensuring optimized living and working conditions protecting health of the occupants and effective utilization of resources."
Labels: Construction Projects, Dubai Real Estate, Latest News
Projects worth Dh.70b launched at Cityscape Dubai 2007
Monday, October 22, 2007
The largest real estate exhibition in the region, Cityscape Dubai 2007, concluded on 18th, with projects worth Dh.70billion being announced, according to information from sources.
This is inclusive of the Dh.40billion Mudon project by Dubai Properties, Remraam project worth Dh.15billion by Mizin, an arm of Tatweer. Apart from this, there were numerous small announcements being made during the three-day event, making it a grand success.
Towards mid-day of last day, the number of visitors crossed 34,000. On an average a minimum of 50,000 visitors, exhibitors and participants thronged the show.
The Middle Eastern developers, who look to expand and diversify their interests beyond the region, could use a new report commissioned by Cityscape Market Intelligence Service (CMIS) launched at Cityscape Dubai.
This is inclusive of the Dh.40billion Mudon project by Dubai Properties, Remraam project worth Dh.15billion by Mizin, an arm of Tatweer. Apart from this, there were numerous small announcements being made during the three-day event, making it a grand success.Towards mid-day of last day, the number of visitors crossed 34,000. On an average a minimum of 50,000 visitors, exhibitors and participants thronged the show.
The Middle Eastern developers, who look to expand and diversify their interests beyond the region, could use a new report commissioned by Cityscape Market Intelligence Service (CMIS) launched at Cityscape Dubai.
Labels: Cityscape, Dubai Real Estate, Property-show
Dubai rentals tripled during the past two years
According to reports by Asteco, a leading property consultancy, the rental rates in Dubai has almost tripled and has increased to an astounding Dh.270 to Dh.280 per square feet from Dh.90 to Dh.100 per square feet during the year 2005.
The commercial property sector in Dubai has witnessed major boost in office rents during the past few years, due to the high-demand generated by continuous influx of multinationals setting up their base in Dubai and the growth in existing businesses.
The Director -Research Valuation & Consultancy at Asteco has stated that this increase in commercial rents will continue until 2008, due to the delay in construction. But towards the year 2009, majority of new supplies will hit the market, thereby easing rental hikes.
The Asteco report reveals that rent on Shaikh Zayed Road has risen to Dh.350-Dh.375 per square foot, as against Dh.220-Dh.240 during 2006. Few other areas witnessing increased rentals are the Karama, and Bur Dhbai at Dh.265 and Dh.280 per square foot respectively. This reveals a corresponding increase of 51 and 24 percent respectively, over the rates of third quarter 2006.
The rents in Dubai apartments have increased by 25 percent from 2005 to 2006 and by 18 percent from 2006 to 2007.
The commercial property sector in Dubai has witnessed major boost in office rents during the past few years, due to the high-demand generated by continuous influx of multinationals setting up their base in Dubai and the growth in existing businesses.
The Director -Research Valuation & Consultancy at Asteco has stated that this increase in commercial rents will continue until 2008, due to the delay in construction. But towards the year 2009, majority of new supplies will hit the market, thereby easing rental hikes.
The Asteco report reveals that rent on Shaikh Zayed Road has risen to Dh.350-Dh.375 per square foot, as against Dh.220-Dh.240 during 2006. Few other areas witnessing increased rentals are the Karama, and Bur Dhbai at Dh.265 and Dh.280 per square foot respectively. This reveals a corresponding increase of 51 and 24 percent respectively, over the rates of third quarter 2006.
The rents in Dubai apartments have increased by 25 percent from 2005 to 2006 and by 18 percent from 2006 to 2007.
Labels: Dubai City, Dubai Real Estate, Real Estate News, Rentals
Dubai Real Estate Corporation chalks out plans for further strengthening Dubai real estate sector
Wednesday, October 17, 2007
Dubai Real Estate Corporation (DREC) has begun operations towards development of Dubai real estate sector, so as to fill in the niche market gaps and boost urban growth of Dubai. DREC was recently established following a verdict by H.H. Sheikh Mohammad bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE and Ruler of Dubai.
DREC is a full-solution real estate company, responsible for offering various value-added services, such as leasing and facility management services, real estate management services, and asset management consultancies, for properties that are registered in the name of Dubai Government or any of its departments. Even investments within the entertainment, hospitality and leisure sectors are all based on DREC's operations, and the company has confirmed its plan to develop these specific areas in future.
The Chief Executive Officer of DREC, Hisham Al Qassim, says "DREC has been established to further strengthen the real estate assets in Dubai, and we intend to accomplish this by concentrating on major areas, targeting niche market gaps, and complementing the urban growth by focusing the underdeveloped areas. We are planning a country-wide expansion in the near future, and hope to play a major role in the next chapter of UAE's development."
Currently, DREC is carrying on preliminary studies on the Dubai property sector, and the results will indicate the key areas for development, depending on market demand and growth potential. The company has revealed its intentions to begin operations by focusing on prime areas, while also maintaining strong market in commercial, residential, industrial, and tourism sectors.
DREC is a full-solution real estate company, responsible for offering various value-added services, such as leasing and facility management services, real estate management services, and asset management consultancies, for properties that are registered in the name of Dubai Government or any of its departments. Even investments within the entertainment, hospitality and leisure sectors are all based on DREC's operations, and the company has confirmed its plan to develop these specific areas in future.
The Chief Executive Officer of DREC, Hisham Al Qassim, says "DREC has been established to further strengthen the real estate assets in Dubai, and we intend to accomplish this by concentrating on major areas, targeting niche market gaps, and complementing the urban growth by focusing the underdeveloped areas. We are planning a country-wide expansion in the near future, and hope to play a major role in the next chapter of UAE's development."
Currently, DREC is carrying on preliminary studies on the Dubai property sector, and the results will indicate the key areas for development, depending on market demand and growth potential. The company has revealed its intentions to begin operations by focusing on prime areas, while also maintaining strong market in commercial, residential, industrial, and tourism sectors.
Labels: Dubai Real Estate, Latest News, Market Trends
Dubai will see 150,000 new residential units: Colliers
Monday, October 15, 2007
According to a report by Colliers International, the Dubai realty sector will shortly see 150,000 new residential units.
Out of these about 134,838 units will be constructed in various 'foreign ownership zones', with about 3415 units in Al Barsha and 4609 units in the Tecom areas. Thirty percent of the Dubai Marina is empty, with owners living in 33 percent of the houses, and the remaining 37 percent are rented out.
The report highlighted the fact that a lot of attention is being focused on the development of high-end products, while the low and middle-income segments are being given only minimal attention. Highlighting the consequences of an oversupply, the report mentioned that high-end residential segment may assume a top-down nature, leading to market-wide relaxation in lease terms, which are currently heavily weighed in favour of landlords."
The report stated that with the landlords getting more competitive, the yearly advance rent payments will be widely replaced by quarterly, or probably, by monthly advance payments within eighteen months. However, this will lead to tightening of regulations, governing the policies of real estate brokerage firms, to ensure the income security of landlords.
Out of these about 134,838 units will be constructed in various 'foreign ownership zones', with about 3415 units in Al Barsha and 4609 units in the Tecom areas. Thirty percent of the Dubai Marina is empty, with owners living in 33 percent of the houses, and the remaining 37 percent are rented out.
The report highlighted the fact that a lot of attention is being focused on the development of high-end products, while the low and middle-income segments are being given only minimal attention. Highlighting the consequences of an oversupply, the report mentioned that high-end residential segment may assume a top-down nature, leading to market-wide relaxation in lease terms, which are currently heavily weighed in favour of landlords."
The report stated that with the landlords getting more competitive, the yearly advance rent payments will be widely replaced by quarterly, or probably, by monthly advance payments within eighteen months. However, this will lead to tightening of regulations, governing the policies of real estate brokerage firms, to ensure the income security of landlords.
Labels: Dubai Real Estate, Market Trends, Residential
Dh.224b Arabian Canal expected to be a 'wonder' of the engineering world
Thursday, October 11, 2007
Dubai, on Tuesday, unveiled a 75-km canal, which would re-shape the southern part of Dubai, transforming the huge Jebel Ali land mass into an island.
This latest mega-project of New Dubai, the Arabian Canal, will turn out to be the biggest and most expensive engineering feats in the world, costing $61 billion (Dh.224 billion).
The giant project will be built in two phases - the first phase is the 75kms canal, worth $11 billion that connects Palm Jebel Ali to the Palm Jumeirah, and the second phase is a 'city within a city' worth $50billion, which covers 20,000 hectares across the southern flank of the canal.
The global real estate branch of Dubai World, which is developed by Limitless, will also bring about a transformation on the arid terrain which stretches from outskirts of New Dubai to Jebel Ali.
"The Arabian Canal, will no doubt, be one of the wonders of the Engineering world," commented Saeed Ahmad Saeed, CEO of Limitless.
The canal, measuring about 150 meters in width and six meters in depth, will flow locally from Dubai Waterfront, through east of new Dubai World Central International Airport and finally will turn back to Palm Jumeirah.
The entire canal project is due for completion towards 2010.
This latest mega-project of New Dubai, the Arabian Canal, will turn out to be the biggest and most expensive engineering feats in the world, costing $61 billion (Dh.224 billion).
The giant project will be built in two phases - the first phase is the 75kms canal, worth $11 billion that connects Palm Jebel Ali to the Palm Jumeirah, and the second phase is a 'city within a city' worth $50billion, which covers 20,000 hectares across the southern flank of the canal.
The global real estate branch of Dubai World, which is developed by Limitless, will also bring about a transformation on the arid terrain which stretches from outskirts of New Dubai to Jebel Ali.
"The Arabian Canal, will no doubt, be one of the wonders of the Engineering world," commented Saeed Ahmad Saeed, CEO of Limitless.
The canal, measuring about 150 meters in width and six meters in depth, will flow locally from Dubai Waterfront, through east of new Dubai World Central International Airport and finally will turn back to Palm Jumeirah.
The entire canal project is due for completion towards 2010.
Labels: Dubai City, Dubai Real Estate, Limitless, New-Dubai
Le Grand Chateau from Al Fara'a Properties meets hundred percent sales
Saturday, October 06, 2007
The flagship subsidiary, Al Fara'a Properties, of the Al Fara'a Construction Group, has announced hundred percent sale of its signature project Le Grand chateau, worth Dh.225million. Al Fara'a is progressing as scheduled and is expected to be delivered in the last quarter of 2008, thereby being the first to deliver a project in Jumeirah Village.
This success by Al Fara's group comes at the right time, when the region has been witnessing unparalleled growth in real estate developments, says Gangaramani, the MD and CEO of Al Fara'a Construction Group.
"Dubai has developed into a major tourist destination in Middle East with 2100 construction projects being planned or under construction across the Gulf, touching $1.5trillion mark in value. Hence, keeping our developments apart in terms of timely delivery, service and quality and value are the major factors behind the success of Al Fara'a Properties," says Gangaramani.
Le Grand Chateau is much sought-after, due to its ideal location at the heart of Jumeirah Village Community, adjacent to green belt, and its timeless architectural splendor that depicts the 16th Century Chateaux of the Loire Valley in France.
This success by Al Fara's group comes at the right time, when the region has been witnessing unparalleled growth in real estate developments, says Gangaramani, the MD and CEO of Al Fara'a Construction Group.
"Dubai has developed into a major tourist destination in Middle East with 2100 construction projects being planned or under construction across the Gulf, touching $1.5trillion mark in value. Hence, keeping our developments apart in terms of timely delivery, service and quality and value are the major factors behind the success of Al Fara'a Properties," says Gangaramani.
Le Grand Chateau is much sought-after, due to its ideal location at the heart of Jumeirah Village Community, adjacent to green belt, and its timeless architectural splendor that depicts the 16th Century Chateaux of the Loire Valley in France.
The development consist of luxurious four bedroom G+2 townhouses, and an apartment block with 185 studios, single, double and triple bedroom apartments, overlooking the landscaped courtyard.
Labels: Dubai Real Estate, Jumeriah Village, Real Estate Company, Sales, Studios, Townhouses
Memon Investment celebrates ground-breaking ceremony of Champions Tower III
Sunday, September 30, 2007
A leading Dubai-based property developer, Memon Investments, a part the Memon Group of Companies, an international business conglomerate, recently conducted a ground breaking ceremony to commemorate the beginning of the construction work on the Champions Tower III, worth Dh.145 million, at the Dubai Sports City (DSC).
Among the Champions Towers Series, the tower is the third and largest development, with Champions Tower I, worth AED 75million, and Champions Tower II, worth Dh.85 million.
The event comes after the Shoring and Excavation contract has been handed over to Stromek Emirates Foundation (SEF), by Memon Investments to officially commence the first phase of construction.
The SEF is a subsidiary of M'SHARIE and is a wholly owned subsidiary of Dubai Investments, and is specialized as a piling contractor. A deadline of four months has been announced by SEF to complete the scope of work for Tower III.
The names of main contractor and sub-contractor will be announced after the completion of the first phase of tower.
"Memon Investments has realized another goal in the Champions Tower series, and we are proud of our progress, although we recognize the role played by our partners in helping us achieve our goes while turning our dreams to reality. Just like the other two towers in Champions series, Tower III is also all set to become a benchmark concept in construction and design, and we are glad to work with partners of such high reputation as SEF," said Rizwan Shaikhani, Jt. Managing Director, Memon Investments.
Champions Tower III, launched in June this year, is a sixteen storey freehold residential tower, with a total built-up area of 250,000 square feet, with a choice ranging from 132 studios, 108 single bedroom, 16 double bedroom apartments, apart from 5-star hotel, which features a spacious fine marble lobby, basement parking, 3 high-speed elevators, concierge and valet services, covered parking on the ground floor, 24-hours manned security and a system for in-house maintenance, to ensure the security and comfort of occupants.
The tower is scheduled for completion by early 2009.
Among the Champions Towers Series, the tower is the third and largest development, with Champions Tower I, worth AED 75million, and Champions Tower II, worth Dh.85 million.The event comes after the Shoring and Excavation contract has been handed over to Stromek Emirates Foundation (SEF), by Memon Investments to officially commence the first phase of construction.
The SEF is a subsidiary of M'SHARIE and is a wholly owned subsidiary of Dubai Investments, and is specialized as a piling contractor. A deadline of four months has been announced by SEF to complete the scope of work for Tower III.
The names of main contractor and sub-contractor will be announced after the completion of the first phase of tower.
"Memon Investments has realized another goal in the Champions Tower series, and we are proud of our progress, although we recognize the role played by our partners in helping us achieve our goes while turning our dreams to reality. Just like the other two towers in Champions series, Tower III is also all set to become a benchmark concept in construction and design, and we are glad to work with partners of such high reputation as SEF," said Rizwan Shaikhani, Jt. Managing Director, Memon Investments.
Champions Tower III, launched in June this year, is a sixteen storey freehold residential tower, with a total built-up area of 250,000 square feet, with a choice ranging from 132 studios, 108 single bedroom, 16 double bedroom apartments, apart from 5-star hotel, which features a spacious fine marble lobby, basement parking, 3 high-speed elevators, concierge and valet services, covered parking on the ground floor, 24-hours manned security and a system for in-house maintenance, to ensure the security and comfort of occupants.
The tower is scheduled for completion by early 2009.
Labels: Dubai Real Estate, Dubai Sports City, Investment Property, Residential
Drop in residential property prices not likely until 2009: EFG-Hermes
Thursday, September 27, 2007
A recent research report from EFG-Hermes, the Regional Investment Bank, states that the residential property market in Dubai continues to mature, but with the supply surpassing demand during the next one year, a drop in property prices cannot be expected until 2009.
The report points out that the delivery of completed projects this year has touch only 11,000 units, out of the 57,000 units that were being expected to come on stream. This shows that the market is witnessing a far slower pace of events, and indicates that demand continues to exceed supply. This difference in demand-supply has resulted in revised forecasts of housing unit supply for the next couple of years, with an estimated 25,000 units for 2007, 64,000 for 2008 and 68,000 for 2009.
However, the demand for property is continually on the rise, with increase in population. Assuming that the population in Dubai would touch 1.9million mark by 2010, with the current 1.4million population currently, the demand for housing would go up to 45,000 to 50,000 new units each year.
The Research Analyst at EFG-Hermes, Sana Kapadia says "Supply in residential property market will continue to be restrained this year. We expect the year 2009 to be the peak year for supply, which means that, the market may not see a decline in prices before this happens."
Kapadia went on to add that, a 10-15% rise in average prices is expected this year, while a rise of 5% to 10% is expected in 2008. Due to most supplies hitting the market in 2008, the prices will begin to drop in 2009, witnessing an approximate decline of 15% to 20% by 2011.
However, the exact difference in prices which EFG-Hermes forecasts for the year 2009, would depend on the pace at which new units come into the market and the extend of demand at that time.
As for rental prices, EFG-Hermes predicts that the rate of rental growth during the first eight months of this year, is likely to continue until early next year.
The report points out that the delivery of completed projects this year has touch only 11,000 units, out of the 57,000 units that were being expected to come on stream. This shows that the market is witnessing a far slower pace of events, and indicates that demand continues to exceed supply. This difference in demand-supply has resulted in revised forecasts of housing unit supply for the next couple of years, with an estimated 25,000 units for 2007, 64,000 for 2008 and 68,000 for 2009.
However, the demand for property is continually on the rise, with increase in population. Assuming that the population in Dubai would touch 1.9million mark by 2010, with the current 1.4million population currently, the demand for housing would go up to 45,000 to 50,000 new units each year.
The Research Analyst at EFG-Hermes, Sana Kapadia says "Supply in residential property market will continue to be restrained this year. We expect the year 2009 to be the peak year for supply, which means that, the market may not see a decline in prices before this happens."
Kapadia went on to add that, a 10-15% rise in average prices is expected this year, while a rise of 5% to 10% is expected in 2008. Due to most supplies hitting the market in 2008, the prices will begin to drop in 2009, witnessing an approximate decline of 15% to 20% by 2011.
However, the exact difference in prices which EFG-Hermes forecasts for the year 2009, would depend on the pace at which new units come into the market and the extend of demand at that time.
As for rental prices, EFG-Hermes predicts that the rate of rental growth during the first eight months of this year, is likely to continue until early next year.
Labels: Dubai Real Estate, Market Trends, Property Prices, Residential
Standard Chartered and Land Department enters into Escrow deal
Standard Chartered, the leading international bank in UAE has announced their entry into an Escrow Account Agreement with Dubai Land Department (DLD).
Through this agreement, Standard Chartered will be formally authorized as an approved bank for opening and managing Escrow accounts of property developers registered with DLD.
This makes Standard Chartered as one among the other few banks in UAE to provide both Islamic Banking Escrow Accounts and Conventional Accounts, thereby giving a wider choice for potential property investors.
The signing ceremony at the DLD office, involved the participation of Sultan Butti bin Mirjin, the Director General of DLD, Nigel Jones, the CEO of Standard Chartered-UAE, and Sultan al Suwaidi, Chief Advisor of Standard Chartered-UAE.
Mirjin said "The Dubai Land Department has adopted a practical approach for development of existing legislation in the real estate sector of the emirate to ensure the safety of investors and to boost their confidence levels in this sector."
The agreement is inline with the new Law Number 8 of 2007, which was issued by Shaikh Mohammad bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE and Ruler of Dubai, and helps in safeguarding any party who goes on to sell a unit from a property development plan, before the actual completion of the project or during the construction phase. Such payments should be placed in an authorized Escrow agent accounts until the completion and delivery of the development.
Jones mentioned that recently Standard Chartered launched the first dedicated mortgage center in UAE in the Emaar Business Park, which revealed its commitment towards the property sector in UAE. This agreement further emphasizes the involvement of the Bank with the property sector, while highlighting the support that the Bank extends to the initiatives backed by government in UAE.
Through this agreement, Standard Chartered will be formally authorized as an approved bank for opening and managing Escrow accounts of property developers registered with DLD.This makes Standard Chartered as one among the other few banks in UAE to provide both Islamic Banking Escrow Accounts and Conventional Accounts, thereby giving a wider choice for potential property investors.
The signing ceremony at the DLD office, involved the participation of Sultan Butti bin Mirjin, the Director General of DLD, Nigel Jones, the CEO of Standard Chartered-UAE, and Sultan al Suwaidi, Chief Advisor of Standard Chartered-UAE.
Mirjin said "The Dubai Land Department has adopted a practical approach for development of existing legislation in the real estate sector of the emirate to ensure the safety of investors and to boost their confidence levels in this sector."
The agreement is inline with the new Law Number 8 of 2007, which was issued by Shaikh Mohammad bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE and Ruler of Dubai, and helps in safeguarding any party who goes on to sell a unit from a property development plan, before the actual completion of the project or during the construction phase. Such payments should be placed in an authorized Escrow agent accounts until the completion and delivery of the development.
Jones mentioned that recently Standard Chartered launched the first dedicated mortgage center in UAE in the Emaar Business Park, which revealed its commitment towards the property sector in UAE. This agreement further emphasizes the involvement of the Bank with the property sector, while highlighting the support that the Bank extends to the initiatives backed by government in UAE.
Labels: Dubai Real Estate, Mortgages, Property Law, Real Estate News
Diamond Investments announces handing over Marina Diamond IV
Tuesday, September 25, 2007
Diamond Investments has announced handing over of Marina Diamond IV, the fourth among the group of six buildings in the Dubai Marina. Diamond Investments, are a new class of property developers in Dubai, and a sister concern of Diamond Developers.
Located in the most luxurious neighbourhoods in Dubai Marina, the Marina Diamond IV comprises 200 units, which includes single and double bedroom apartments with various facilities such as the swimming pool, exclusive children's pool and fully equipped gymnasium.
The CEO of Diamond Investments, Fares Saeed, said "Quality, luxurious environment and reasonable prices have been the major factors behind the Diamond's success. We are committed to develop properties in the most innovative manner, and offer tailor-made commercial and residential space to our customers, for their luxury and comfort."
The units were designed as planned by Diamond Investment, for developing a property that is high in quality and affordable in price. Saeed revealed the company's intention to deliver Marina Diamond V and VI during later part of the year, as the demand would only increase after the handing over of the Marina Diamond IV. This brings the total residential units in Dubai to 1300.
Saeed is of the opinion that this increase would supplement the housing equation and will ultimately lead to better stability and maturity in the Dubai property market.
Diamond Investments is also offering a unique customer service program to its tenants. A committed member of the staff will accompany the buyer during the inspection phase and will address any concern that the new owner may seem to have. Also a staff member will conduct a follow-up during the inspection phase to rectify issues, if any, and will stay vigilant to the customer, once they have moved in.
Located in the most luxurious neighbourhoods in Dubai Marina, the Marina Diamond IV comprises 200 units, which includes single and double bedroom apartments with various facilities such as the swimming pool, exclusive children's pool and fully equipped gymnasium.The CEO of Diamond Investments, Fares Saeed, said "Quality, luxurious environment and reasonable prices have been the major factors behind the Diamond's success. We are committed to develop properties in the most innovative manner, and offer tailor-made commercial and residential space to our customers, for their luxury and comfort."
The units were designed as planned by Diamond Investment, for developing a property that is high in quality and affordable in price. Saeed revealed the company's intention to deliver Marina Diamond V and VI during later part of the year, as the demand would only increase after the handing over of the Marina Diamond IV. This brings the total residential units in Dubai to 1300.
Saeed is of the opinion that this increase would supplement the housing equation and will ultimately lead to better stability and maturity in the Dubai property market.
Diamond Investments is also offering a unique customer service program to its tenants. A committed member of the staff will accompany the buyer during the inspection phase and will address any concern that the new owner may seem to have. Also a staff member will conduct a follow-up during the inspection phase to rectify issues, if any, and will stay vigilant to the customer, once they have moved in.
Labels: Apartments, Dubai Marina, Dubai Real Estate, Residential
Schon Properties awards the UAE grand prize winner with the key to Dubai Lagoon apartment
Saturday, September 22, 2007
Schon Properties, together with Emarat and Dubai Summer Surprises, has awarded the UAE national, Khalid Ebrahim Hussain, with the key to his new apartment in Dubai Lagoon. Schon Properties are the developers behind the Dh.3billion Dubai Lagoon development.
The Chairman of Schon Properties, Nasir Husain, stated that the promotion was a huge success and expressed his happiness to present the new dream apartment to the grand prize winner, just a day before the commencement of Ramadan.
Schon Properties is a newly established holding company, which has numerous real estate projects in the UAE. Dubai Lagoon is a major development in their portfolio, built in the heart of Dubai Investment Park, covering about 6 million square feet of development area. The project comprises 53 buildings, comprising studios, single, double and triple bedrooms and penthouse apartments. The Schon Buisness Park is the first business park of its kind located in the Dubai Investment Park.
The Chairman of Schon Properties, Nasir Husain, stated that the promotion was a huge success and expressed his happiness to present the new dream apartment to the grand prize winner, just a day before the commencement of Ramadan.Schon Properties is a newly established holding company, which has numerous real estate projects in the UAE. Dubai Lagoon is a major development in their portfolio, built in the heart of Dubai Investment Park, covering about 6 million square feet of development area. The project comprises 53 buildings, comprising studios, single, double and triple bedrooms and penthouse apartments. The Schon Buisness Park is the first business park of its kind located in the Dubai Investment Park.
Labels: Dubai Real Estate, Lagoon, Real Estate News
