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.
Social BookmarkingThe 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.
Social BookmarkingThe 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.
Social BookmarkingThe 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.
Social BookmarkingIn 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.
Social BookmarkingDubai 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.
Social BookmarkingThe 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.
Social BookmarkingThe 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.
Social BookmarkingWith 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.
Social BookmarkingThe 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.
Social BookmarkingThese 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
Social BookmarkingThe 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.
Social BookmarkingShaikh 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.
Social BookmarkingApart 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