Dubai Real Estate News
UAE Property Market Trends and Reviews

"; Investors who purchased property in Dubai, less than two years ago, still stand to gain profit, despite the low prices at present, the owner of Dubai-based brokerage firm said.

The CEO of Leo Sterling, Laura Martorano, said that people who are suffering the most are those who purchased properties last year on mortgage, as the prices of properties then were very high and mortgage rates were also high. But, people who purchased before 2007 also have not lost. Even if they sell, they still get to make a profit.

The property prices in Dubai have not been affected by the recent Dubai World restructuring talks, Martorano agreed, and added that prices in the ready market are not liable for a change, as there is competition.

In a ready market, about 60 percent of purchases are cash purchases. Therefore, people may not necessarily be so desperate as opposed to 40 percent, who have bank loans and mortgages, she added.

Real estate transactions in Dubai have fallen in November, compared to figures posed in the previous month, official data said. The number of land sales fell by 11 percent from 208 in October, to 186 in November, while the value of transaction deals fell by 47 percent from Dh.1.84bn to Dh.970mn during the same period.

The Dubai Land Department data showed the villa sales have grown 24 percent from 88 to 109, but there was a decline by 41 percent in value from Dh.290mn in October to Dh.170mn in November.

The month of October also showed positive indicators, with average monthly market index posting 11.25 percent hike, while trade as issued Dubai certificates of origin, increased by 10 percent in volume and 9 percent in value.

Despite the negative economic indicators, Martorano is confident that Dubai will continue to hold a bright future.

Labels: Investment Property, Property Prices

"; The UAE has been an important center of attraction for world investment in various sectors, pointed out Hani Alhamli, Secretary-General of Dubai Economic Council.

He emphasized that latest figures in the country, recorded in various fields are great achievements during these times of global economic crisis.

This statement came to light during the newly launched World Investment Report 2009 by the UNCTAD. The report states that UAE has maintained its attractiveness in Foreign Direct Investments (FDI), compared to several other advanced and emerging markets.

UAE's experience over the last years in economic development reveals the strategic vision of the wise leadership of UAE in enhancing the growth path through global and regional integration.

Attracting FDI is one of the main policies adopted by the government, due to its advantages for local economy such as increasing investments and hence the growth rate, increase in employment rate, and transferring the technology and know-how to the country, Alhamli said.

He also mentioned that Dubai has made a significant contribution in attracting FDIs to the UAE, due to its distinguished place in the regional and global business map.

The World Investment Report 2009 showed that the volume of FDI inflow into the UAE were $13.7bn in 2008, compared to $14.19bn in 2007. On the other hand, the report indicated that the cumulative value of these investments at the end of 2008 stood at $69.42bn, around 25 percent of UAE's GDP.

Alhamli said that the report shows distinct development pertaining to FDI inflow. The number of projects executed by foreign investors in the UAE last year was 480 in number, marking an impressive growth rate of 70 percent, compared to that in 2007. During the first half of this year, there are a total of 136 projects. This reflects the strong foundation of the national economy and its highly competitive advantage, in comparison to several other countries.

Labels: Investment Property, Latest News

"; Several foreign investors have shown interest in Dubai hotel property sector to grab benefits from opportunities following Ramadan, revealed a senior executive at CBRE Hotels.

The Vice-President at CBRE Hotels, Amine Hamdani, said that although the number of transactions in Dubai is still poor, there is considerable interest among investors in properties located in Dubai.

"Several foreign investors are looking at Dubai with interest," he said.

CBRE has identified about 12 interesting hotel properties in Dubai. Five are operational and others are newly developed. The hotels with more than 120 rooms are worth $60million or more, depending on the location.

Hamdani said investors are looking for income-generating and operational hotels in good locations. Newly developed hotels and those under development are not of much interest to foreign buyers.

There are several opportunities available for cash-rich investors. The hotel investment deals happening in the industry are comparatively very few in number as the region has been dominated by developers and not investors.

Hamdani revealed that according to earlier estimates, 65,000 new hotel rooms are required in the next seven to eight years. But owing to economic crisis, the number of extra rooms in the next five years would be just 22,000, constituting 30.8 percent of the forecast. The market has been hit by adverse conditions in the real estate market, with several mixed-use developments with hotels being stopped or delayed.

On the flip side, during the past four years, the developers have been investing in the hotel industry yields high earnings. In the next four to six years, institutionalisation of hotel industry, coupled with the growth of strong investment market will result in more foreign buyers seeking long-term opportunities. The door will remain shut to a large portion of short-term players, although few will remain, and will have a role in bringing back liquidity, he concluded.

Labels: Investment Property, New Hotels

"; With the local and global banks re-entering the mortgage lending market, it is evident that UAE property market is re-gaining confidence of the financial sector, and few analysts believe that this may be the right time for long-term investors to re-enter the market.

James Gauduchon, the Manager-Corporate Marketing at Better Homes, a real estate company, said that confidence is re-entering the market, and it looks like the property market has begun heading upwards again.

The Head of Retail at the Dubai Bank, Mohammed Amiri, said that the classic pattern for any property market is a slow start upwards, then a period of manic buying, followed by slowdown and standstill. The market then changes direction, and prices would begin to head downwards, before collapsing into a new market bottom, after which, the cycle would move upwards again.

The Chief Executive Officer - Personal Financial Services, HSBC - Middle East and North Africa, Abdulfattah Sharaf, said that with the ease in lending and the attractive prices offered by the housing environment in the UAE, more end-users are grabbing the opportunity to own a home.

Following a 30 to 40 percent drop, the initial signs of stabilization in Dubai real estate sector have appeared, taking observers by a surprise, said Phillippe Dauba Pantanacce, Senior Economist, Standard Chartered Bank.

The volume of distressed stock has gradually diminished. The end of the freefall is an encouraging sign for Dubai and for Abu Dhabi, as it had a direct negative impact on the banking sector with higher defaults and non-performing loans.

Gauduchon said that the residential segment will be the first to recover, and commercial and retail sectors would soonfollow.

However, analysts advised caution, and said a further decline, particularly in few segments of the market, cannot be ruled out. The returns for properties that are away from the desert, will be more than the off-plan projects or those in obscure locations.

On the whole, completed high-quality properties that are competitively priced and in prime locations, will continue to generate more demand and value than others, said Suvo Sarkar, Executive Vice President and General Manager - Retail Banking at Emirates NBD, the region's largest bank in terms of assets.

Traditional real estate near the sea or in the middle of the town will be worth more in the long-term. The next few years, would be the best time for investment for long-term players, he added.

Labels: Investment Property, Market Trends, Mortgages

"; According to a special report by the Financial Times, Dubai has been ranked as the topmost destination for Foreign Direct Investment (FDI), even surpassing London and Shanghai.

The UAE continues to be on the forefront in the MENA (Middle East and North Africa) region, accounting for 50 percent of the total projects happening in the region.

Being the top destination for FDI in 2008, Dubai has had a total of 342 projects, with $21billion worth of capital investment, making way for 58,000 new jobs. UAE is the leading destination for FDI in the region, with 480 projects, with a capital expenditure of $35bn, creating about 87,000 new jobs last year.

According to sources, the total number of FDI projects in the Middle East alone, have amounted to 969, creating 237,000 jobs with a capital expenditure of $154bn.

The Governor of Dubai International Financial Center and Vice Chairman of the Central Bank of UAE, Dr. Oman Bin Sulaiman, said that the number of projects initiated, the jobs created and the capital investment, are all sufficient proof of the economic strength of the country.

It is a remarkable achievement for Dubai, to be the leading city in the world for FDI, and we are committed towards continuing to demonstrate the benefit of investing in the UAE and Dubai, Dr. Sulaiman said.

Labels: Dubai City, Investment Property, Latest News

"; With the investors beginning to consider Abu Dhabi as the top regional market in terms of city competitiveness, the year 2010 would be the best time to invest in the Middle East and North Africa (MENA) real estate market, says a new report.

The Head of MENA Investment Transactions at Jones Lang LaSalle, Ian Ohan, says "Investors expect Abu Dhabi to be the best performing property market in the MENA region during the next one or two years."

Given the current scarcity of institutional quality real estate in most sectors of the market, investors are finding the most attractive investment environment in Abu Dhabi, compared to other major markets in the region.

The long-term success and sustainability of the city, including the planned infrastructure, real estate planning, strong corporate governance, environment sustainability, quality of leadership and political stability have all further contributed to this fact.

The financial strength of the government also offers a solid platform for continued infrastructure spending over the next couple of years. As in the other markets, decreased cost of construction and falling land values would result in high returns, particularly, on the projects at their early stages of development.

According to a Jones Lang LaSalle report in March, the Abu Dhabi market is dominated by government-related companies, who are beginning to intervene to rationalize and delay projects, thereby avoiding potential over-supply in future.

Saudi Arabia is also increasingly being considered as offering strong potential, with several respondents suggesting that it would be the strongest performing property markets across the MENA region in the next one or two years.

However, despite concerns over short-term risks, Dubai has been ranked second (following Abu Dhabi) on the most of long-term underlying factors, which promises a recovery of the market in the medium-term. With significant market adjustments in rental values and capital, already in place, Dubai too, may be one of the most lucrative property investment opportunities in the region.

Labels: Abu Dhabi, Investment Property, Middle-East

"; Property investors looking for a strong UAE property investment, then property in Ajman should be right at the top of their list as Ajman has outshone other emirates in attracting foreign investments, according to reports.

Reports indicate that investments into Ajman's property sector have crossed the Dh400 billion mark. The impressive foreign investments indicate that the global financial crisis has not affected the market and Ajman is experiencing a property boom due to its investor-friendly property laws and reasonable project rates and Property prices also saw an overall appreciation of 40 per cent in 2008.

Fahad Sattar Dero, CEO of Sweet Homes, also developing in Ajman, said that the global financial crisis has resulted in an undervaluation of properties however the region is strategically positioned to attract more foreign investments into the real estate sector. He added that companies and residents are forced to cut down on expenditure, thereby driving the demand for inexpensive housing.

The CEO said prices certainly dip as more families opt for Ajman instead of neighboring emirates. He said there would be 33 per cent dip in housing prices in Ajman -compared to pre-recession years -in the first quarter of 2009. Ajman is growing popular among expatriates on the lookout for quality yet comparatively cheap accommodation as developers are offering multiple incentives, zero initial payment and offering more number of installments besides furnishing the properties.

"The market gradually is becoming buyer-oriented and Ajman government soon to formulate a body in early 2009 to monitor realty transactions and has started implementing the escrow account, which guarantees the security of real estate investments within the emirate," Sattar Dero added.

In related news, Sweet Homes recently announced 70 per cent of its Dh3 billion Ajman Uptown project has already been sold.

Labels: Ajman, Investment Property

"; 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.

Labels: Dubai Real Estate, Investment Property

"; Great Properties, the UAE-based real estate agency, has announced that its share of 'Al Helio Downtown' development in Ajman, has been sold out only two months after its launch.

The real estate sales and marketing agency has been given exclusive rights to sell the plots at Al Helio Downtown, thereby making it the second project promoted by Great Properties and sold on behalf of Al Rashed Real Estate.

The Sales Director for Great Properties, Mohammed Mirza, said "Savvy investors have realized that Ajman is the next great investment opportunity in the UAE. The attractive terms of sale offered by Great Properties and the unparalleled value for money offered on investments in Ajman is one of the main reasons for properties being snapped away so quickly."

About 32 commercial and residential plots have been offered by Great Properties in the development, with a 10 percent down payment option and a special interest-free introductory offer.

The plots were available for Dh.85 per square foot, in comparison to Dh.350 per square foot for similar developments in Dubai. Investors were also given contractual rights to resell the property after making down payment.

Al Helio Downtown is a mixed-use, self-sustained community, spreading across 115 acres. It is just five minutes away from Ajman Downtown development, which will reconfigure the main business in the emirate's business and residential districts. The development will include a nursery, schools, gardens, lakes and health care facilities, mosque and a shopping district.

The Sharjah International Airport is just seven minutes away, and Dubai is just 20 minutes away from Ajman.

Great Properties is managing Dh.2bn worth of projects in Ajman, out of a total six major investment projects worth Dh.40.8bn in Ajman. This makes Great Properties one of the leading real estate agencies in the booming emirate.

Labels: Ajman, Investment Property, Sales

"; About 50 percent of all investments in the UAE, and the rest of GCC region, goes into the property sector, as against just 30 percent in other Arab states, noted a development expert.

Also, it should be pointed out at this juncture that the Gulf is not subject to the risk of sub-prime crisis, such as that experienced in the United States, said Dr. Refat Abdelhalim Alfaouri, Director-General, Arab Administrative Development Organization (AADO).

Speaking to the media, Dr. Al Faouri, said any crisis would be the result of an excessive supply of residential units, and political problems, which could lead to possibility of instability in the region.

These factors are not predominant in the UAE and other GCC states, right now, as the states are enjoying security and political stability. Also, the gap between supply and demand of residential units is still large.

The AADO, on monitoring the currently flow of investments into the Arab world's property sector, noticed that about $90bn worth of total investments flowed into the real estate sector each year.

The best areas for investment in the Arab World currently are gold and real estate, both of which, offer safety and stability. The property sector has several benefits, the most prominent of which is the availability of large amount of capital, due to huge increase in prices of oil and high demand for residential units due to growth in population in the Arab countries.

But, shortage of skilled manpower to run properties, and weakness of laws governing the industry and property finance institutions are few of the challenges faced by realty sector.
A study by the Abu Dhabi Chamber of Commerce and Industry (ADCCI) reveals that projects in excess of Dh.1.300 trillion are underway and will be implemented in Abu Dhabi in the next few years. This includes construction and property ventures worth more than Dh.752bn.

The construction boom in Abu Dhabi and several other parts of UAE has helped boost the value of the sector over the past couple of years. The contribution to the gross domestic product of the country has increased from Dh.25bn in 2002 to Dh.45.5bn in 2007, and is expected to touch a maximum of Dh.53.3bn this year.

The property sector contributes an approximate of 6.5 percent of the nominal GDP of the UAE, and about Dh.697bn in 2007.

Labels: Investment Property, Latest News, Middle-East, UAE

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Labels: Dubai Marina, Investment Property

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Labels: Ajman, Investment Property

"; Al Osaimi Investments and Real Estate, a Kuwaiti developer, on Sunday, launched Dh.1.5bn flagship development, 'The Dusit Emirates Saray' at the Palm Jumeirah, Dubai.

The development, which spreads across one million square feet of land, along 11.5kms of the crescent of Palm Jumeirah, comprises three projects on the whole: 'The Dusit Devarana' - a seven-star Indian themed hotel with 116 rooms spreading across 26,000 square feet of space, 'The Dusit Thani' - a five-star Moroccan-themed resort with 292 rooms spread across 34,000 square feet of space, and 'The Residence' - 178 Arabian-themed freehold units spreading across 57,000 square feet of space. The development will also have a 51,000 square feet size basement.



'The Dusit Thani' apart from the 292 guest rooms, will comprise suites, restaurants and a business center, will have three pools around the Palm Lagoon, will comprise 10 freestanding chalets and business center.


The high-light of the development will be the Arabian-themed 178 freehold units of 'The Residence', comprising two-storey townhouses, three-bedroom penthouses and apartments, a spacious terrace, pool, garden and parking for each unit, with maximum exclusivity for residential investors. The development will also include four freestanding restaurants and water sports facility.

The project will be complete towards the first quarter of 2010. The sale of the project, which began yesterday, will move to Saudi Arabia, Kuwait and other GCC countries after three days.

Labels: Freehold Property, Investment Property, Palm Jumeirah, Residential

"; Al Mazaya Holding has announced its plans to develop 600 villas worth Dh.1bn, in Dubailand.

The developer, last week, displayed the model picture of the villas to the investors. Dubai Properties are the master-planners of The Villa. The project, which was handed over to Al Mazaya after completion of infrastructure works by the main developer, was awaiting bid from contractors for constructional works. Now the contracts have already been awarded, and the work has commenced.

Al Mazaya plans to complete The Villa within 18 months, while providing a marketing tool for the project owners. Three models have been designed by the company, specifying the finishing and furniture. These models can be utilized by owners to facilitate their choice of specifications, after looking at available options.

The interiors and layout work has been awarded to Spanish Interior Designer, Perla Lichi, to build luxurious home interiors and layout for necessary specifications of the project.

Labels: Dubailand, Investment Property, Luxury Homes, Villa Projects

"; Shaped like a Palm Tree, The Palm Jumeirah, consists of a trunk, a crown with 17 fronds, and a surrounding crescent island which forms a 11-kilometer-long breakwater. The island covers 5kilometers by 5 kilometers in area, and is larger than 800 football pitches. The mainland and the crown are linked by a 300-meter long bridge, and the top of the palm is connected to the crescent by a subsea tunnel.

By the next three years time, with the development of tourism phases, The Palm Jumeirah is touted as the premier resorts in the world. The Palm Island is the self-declared "Eight Wonder of the World". The island is expected to double the Dubai coastline. Currently, with the completion of most apartments and villas, the first residents have already moved in, and have begun experiencing the lifestyle of living in an island.

The Palm Jumeirah is expected to feature the best themed boutique hotels, beaches, restaurants, marinas, cafes and various retail outlets. More than 30 beachfront hotels will be opened towards the end of 2009, few of which include Atlantis, The Trump International Hotel and Tower, The Taj Exotica Hotel & Resort, The Palm, Tiara Residence, Grandeur Residences, The Fairmont Palm Residence, Tiara Residence, Oceana Residence, The Fairmont Palm Hotel and Resort, The Dubai Estates Hotel and Park, Hotel Missori, Dubai, Kempinski Emerald Palace, Kempinski Emarald Palace Residences.

Jumeirah Freehold property is already available to move in, which also includes Signature villas, Garden villas, Shoreline Apartments, Oceana apartments, Marina Apartments, Canal Cove townhomes and Golden Mile Apartments.

Apart from featuring unique designs that are finished to suit individual specifications, the Signature Villas, offer numerous other amenities including private swimming pool, a private beach, and access to all other facilities of the Palm residences.

Labels: Investment Property, Palm Jumeirah, Residential, Villa Projects

"; Al Hamra Real Estate development LLC has launched the Phase 3 project of the prestigious Al Hamra Village in Ras Al Khaimah, at a total investment cost of AED 7 billion.

The sale of the mixed use, residential and commercial property is now also open to investors. The project is expected to be completed in 2010.




Also available for sale, is the luxurious hotel apartments at the magnificent 7 Star Palace Hotel. There are only a limited number of hotel apartments as part of this deluxe beach-front property. The hotel is due to open in late 2008 and is built in an contemporary Arabesque design, keeping up with the rich cultural heritage of Ras Al Khaimah

"The third phase of Al Hamra will have a core of 14 residential buildings with a total of 3,900 apartments and town houses, which we expect to be ready by end of 2010. As part of the immediate release, there are 700 high quality luxury villas, plus 1000 studios 1, 2 and 3 bedroom apartments which will be available for sale on a 100% Freehold", said Piras.

The project will also offer fantastic luxurious penthouses with 180 degree panoramic views of the Arabian Gulf and coastline. This project is surrounded by salt water lagoons, private outdoor swimming pools and landscaped gardens.

Other amenities in this project include, the 18-hole championship Golf course, designed by renowned Golf course designer Peter Harradine.

There will be a 200-berth Al Hamra Village Marina, which is unique as it overlooks the beautiful surrounding harbour town. Comparable only to the best that Europe has to offer, the Marina and club house will provide full services. It will also offer a superb dining experience next to the Marina apartments.

The new Al Hamra Shopping Mall will be a shopper's paradise, with over 100 stores of which 92% is leased out. It has attracted supermarket chains and major retailers with such names as Spinneys, Damas, Interiors, and Paris Gallery. The facility will also accommodate other retail service outlets including food courts, designer clothing boutiques, and electronic stores among others.

Piras also disclosed that mortgages are being offered by several banks and institutions. The mortgages, he said will be administered under the terms set by these institutions.

"The cost of the apartments and villas in Al Hamra are very competitive. Financing institutions are now offering finance up to 80% of the total value of the unit, for a maximum of 15 years.

Residence Visa is provided on the purchase of each unit and the owner is allowed to register his property with the Land Department of Ras Al Khaimah, upon completion of full payment," said Piras.

Labels: Al-Hamra, Apartments, Investment Property, Penthouse, Ras Al Khaima, Sales, Townhouses, Villa Projects

"; 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.

Labels: Dubai Real Estate, Dubai Sports City, Investment Property, Residential

"; Cinnovation Group and the HDS Group have together launched the HDS Sunstar Towers in the Dubai International City.

The Director of Cinnovation Group, Varun Chaudhary, and the Managing Director of HDS Group, Ali Dar, together has recently performed the ground-breaking ceremony for construction of its first tower on plot number 22 in the Central Business District.

The project is unique, in the sense, that it offers buyers the opportunity to see the projects that they plan to purchase. The sale of units will begin during mid 2008, when the project is almost complete. Even options for finance will be announced by that time.

The HDS Sunstar I and HDS Sunstar II are all ready to be completed towards end of 2008.

Chaudhary says "You would never buy a car without seeing what it looks like. Hence while investing in a property, being able to see what you are paying for, makes all the difference. HDS Sunstar Towers is a project that sells purely on a concept and we will show potential buyers the properties they will be investing in."

The location and positioning of the Sunstar Towers will decide the exclusivity and prestige of a world-class development, said Dar.

The two G+10-storey residential towers, worth more than Dh.200 million, comprises single, and double bedroom units offering spacious living space. Both HDS and Cinnovation have over the years, established themselves as major players in the dubai property sector.

Labels: International City, Investment Property, New Developments, Residential, Sales

";

The Canal Residence West, positioned on the promenade, midway between the southern and northern retail hubs of the vibrant downtown district of the Dubai Sports City, makes a whole new lifestyle statement, apart from being just your home.

Located away from the cheering crowds and energy of the stadiums and the shopping mall, the Canal Residence West, depicts a world that replicates the fashion, passion and relaxation of the Riviera lifestyle, presenting infinite opportunities for you to enjoy every moment of it. In short, a life defined by the icons of modern metropolis.

The excitement of international sporting events at the Canal Residence West, is complemented by healthy lifestyle which is being promised by the Dubai Sports City. The ambience of the exciting city is quite inspiring and enables you to achieve the highest in physical fitness.

The Ste-of-the-art swimming pools and other art facilities, gives you the opportunity to keep yourself fit and healthy, with a fitness regime that spreads through the entire city, to the Ernie Els golf course and the Next Generation Club, an exception health club, offering a range of options for fitness and recreation.

The Canal Residence West, has teamed up with a world class leader, Bureau Veritas, in providing QHSE third party services, for providing quality accreditation monitoring service at each stage right from design to delivery. The service brings peace of mind to buyers and ensures that the promised quality has been delivered to its level best.

The Canal Residence West includes the following Canal Front Buildings:

• Arabian Tower
• Spanish Andalucian Tower
• Mediterranean Tower
• Classic European Tower
• Venetian Tower
  

Features

• Stylised facade designed for each building
• Landscaped waterfront promenade offering cafes, restaurants, boutiques and convenience stores
• Private club on the first floor of all buildings offering state of the art gym, fitness studio, steam room and jacuzzi, beauty salons and therapeutic treatments, reading & music room, games room and business centre
• Elevated swimming pools and sundecks with shaded pavilions
• Stunning views
• Dedicated and secure parking facilities including visitors bay
• Changing facilities and outside showers
• Children's play area
• Communal gardens and BBQ areas
• Security and concierge services
• Floor layout planned for comfortable living
• Spacious open-plan living, dining and kitchen areas
• Penthouse apartments boast maid's room and private rooftop terrace with stunning panoramic views across Dubai Sports City
• Interior designed kitchens and bathrooms
• Elegant selection of porcelain and ceramic tiles with matching borders in living areas
• Granite countertops and matching splash backs
• Elegant, high quality kitchen cabinetry
• Chrome finish, contemporary taps and fittings
• Premium sanitary fixtures
• Ceramic floor tiles in bathrooms
• Generous, fitted wardrobes and storage space
• Provision for high speed internet access and digital technology
• Solid main door
• CCTV and access control system for security
• Fire alarm system
• Central AC system
• Generous and efficient lift provisions
• Central household waste removal

Labels: Apartments, Dubai Sports City, Golf property, Investment Property, Luxury Homes, Penthouse

"; The Dubai International Financial Center (DIFC) is a free trade zone located in the heart of Dubai's new business district, and is designed to be an on-shore alternative with off-shore features. The DIFC lures firms and investors with its high standards, world-class regulations and transparency. Apart from this, it brings with it, the added advantage of being a tax-free environment in Dubai, the major business hub of Middle East and the current major business center in Asia.

DIFC already houses the finest multinational companies in the world, and with more developments including commercial projects in pipeline, it will be home to even more. The hundred percent foreign ownership and lack of taxation on income or profits have been a major motivation for numerous multinational companies and locals, to base their worldwide operations here.

DIFC features modern advanced technology on all scales, with operational support, strict enforcement of anti money laundering laws, high quality finishing standards on commercial office space, and amenities such as gymnasium, cafes, restaurants, amiable working atmosphere with 24 hours security.

The future of DIFC will continue with new additions of freehold towers including the Park Towers, Limestone House, Sky Gardens and easy accessibility to nearby Burj dubai developments, and Business Bay. No doubt, DIFC is a financial center with a difference.

Labels: Business Tower, Commercial Property, DIFC, Investment Property

"; The luxury built-in Gallery Villas that are designed for family living, is an exclusive private community that will become home only to a selected few.

Comprising 75 luxury villas, that are designed as a self-contained private community within the Dubai Sports City, the Gallery Villas, are a safe, secure private community, comprising landscaped gardens, green spaces with cycle and jogging tracks. The development consists of two storey, three bedroom semi-detached and terraced townhouses with 2,444 square feet habitable space, and five bedroom detached villas accommodated in two storeys with 4,553 square feet habitable space.

The houses include spacious rooms and large patios and balconies, high quality kitchen cabinetry with granite countertops, built-in wardrobes in all bedrooms, separate dressing area in master bedrooms, spacious laundry and storage facilities, maids room, detached villa featuring the ensuite bathroom, guest room and driver’s room adjacent to garage.

Positioned ideally, adjacent to 'The Dunes' signature golf course, the development comprises private international schools, childcare facilities and medical clinics.

Labels: Dubai Sports City, Golf property, Investment Property, Luxury Homes, Villa Projects

"; Emaar has recently announced the launch its Claren residential towers on 9th September'07 in Burj Dubai.

Located directly across the 29 Burj Dubai Boulevard, Claren features two well-designed mid-rise towers and boulevard apartments that offer to its residents spacious living with better privacy. It features a wide range of podium amenities and is easily accessible to Burj Dubai.

Various financial institutions are competing to offer easy finance options to own a home at Claren, which comprises studios, one, two and three bedroom apartments.

Claren's close proximity to the Downtown Burj Dubai, and other business and financial hubs of Dubai, makes it an ideal location for professionals to stay updated with the happenings in and around the city. Various other entertainment and retail options add to the attractions of Claren. Residents will also have an easy access to The Dubai Mall, the largest entertainment and shopping destinations in the world.

The Podium amenities in Claren includes a swimming pool, office spaces, children's pool and landscaped pool deck, gymnasium, children play area, multipurpose rooms, basement level parking, shaded car drop-off at entrance level.

The apartments are specially designed to optimize natural light, with the buildings spaced sufficiently to sustain privacy, which is often not found in most high-rise buildings. The buildings will have high-speed internet, telephone service and wide range of IT options.

The Downtown Burj Dubai development by Emaar, worth US$20 billion, has most of its components in the development completed and delivered, including the residential and hospitality projects. The hi-tech superior homes, retail outlets and commercial offices and other leisure projects, located amidst landscaped gardens in the development, are marking the foray of a new downtown culture for Dubai.

Labels: Apartments, Burj Dubai, Emmar, Investment Property, Luxury Homes, New Developments, Real Estate Projects, Residential

"; The real estate subsidiary of Dubai Islamic Bank, Deyaar, has revealed its plans to develop Dh.2 billion residential project in the International Media Production Zones (iMPZ). This will be the largest ever development of Deyaar to date.

The project will cover a stretch of 40 plots, which were recently acquired by Deyaar in a prominent location at the iMPZ.

The Chief Executive of Deyaar, Zack Shahin, said that Deyaar has taken this initiative to widen its portfolio, particularly in the residential sector, so as to meet the increasing demand from investors and end-users. He expressed his confidence about the project at iMPZ and said that it will surely be a landmark project not only for Deyaar, but for the property landscape in the entire region.

Each phase of the development at iMPZ will be placed for sale, one after the other, during the next couple of months. The project will cover and area of 827,785 sq.ft., and a built-up area of 2.6 million square feet. Construction for the same is likely to begin this year.

The development will be located on the Emirates Road, along the edge of iMPZ, adjoining the Jumeirah Golf Estates.

Labels: Deyaar, Investment Property, New Developments, Residential

"; The country-subsidiary of Emaar Properties, Emaar International Jordan, has launched the sale of its hi-tech residential project, Samarah Dead Sea Golf & Beach Resort in Dubai on August 18th.

The project, overlooking the Dead Sea, comprises Mediterranean styled homes, within a vibrant retail center and a Spa and Wellness Village.

The Emaar International Jordan General Manager, Steve McCartt, said "The Samarah Hillside homes will provide a lifestyle experience for Jordan through integration of several leisure amenities in close proximity. Jordan has witnessed keen interest from Dubai investors including the Jordanian community in Dubai. Through this sales launch in Jordan and Dubai, we wish to offer a purchase opportunity for Jordan and international investors."

Samarah Dead Sea Golf & Beach Resort is owned by The Dead Sea Touristic and Real Estate Company, a venture of Emaar Properties PJSC. The project aims to energize the Jordanian economy with particular focus on tourism growth and luxury property development.

At present, Emaar is launching the sales of homes within the Hillside comprising two and three bedrooms ranging 314 to 404 sq. mts., in size. The multi-functional residential community is situated opposite to the King Hussein Bin Talal Convention Center.

Labels: Emmar, International, Investment Property, New Developments, Resorts, Sales

"; An island in Ras Al Kaimah has been purchased by two UAE nationals to set up a real estate project, which is expected to be the first of its kind in the country.

The nationals purchased the Al Khayal or Fantasy Island for Dh.600 million, which will be later developed as a tourist site at a cost of Dh.8 billion.

The 22,000 square meters island, situated in Al Hamraa area of Ras Al Khaimah, was purchased by Ahmed bin Ali Al Abdullah (Executive Director- New Dubai Real Estate Development Company) and Abdullah bin Mohammed Al Shaibani (Executive Director – Amlak Al Medina Real Estate Company).

The two nationals purchased the island with an intention to set up realty firms, and have entered into partnerships with UAE property investors to develop the island.

Work on the island is expected to commence next year, and will be executed in four phases over a four-year period. The island will house 2,200 units, including flats and villas and commercial center.

Al Abdullah said, the natural island will be the focus for hotels, tourism, fishing and leisure activities. He said "The land has been offered by the government at a good price that would yield good returns, and we look forward for more governmental support for the completion of the project within the stipulated time. Most of our alliances include investors from Bahrain and Kuwait."

Al Abdullah mentioned that they have entered into an agreement with a local bank for management of the project investment, and that they plan to promote Ras Al Khaimah as a tourist destination.

As of now, sixty percent of the project is being planned to be put on sale, and on completion of the development, it will be sold in full.

The island will combine curved architectural and fishing design, and take the shape of a fisher's spear or an arrow used by UAE nationals in the past.

Labels: Investment Property, Latest News, Ras Al Khaima, Real Estate Company

";

Labels: Fujairah, Investment Property, New Hotels, Resorts

"; Emaar Properties has announced launching the sale of Ghadeer Townhomes at The Lakes, on 11th of August.

Buyers looking to invest in the property can register online from August 5th to August 7th for participating in the launch.

Emirates Islamic Bank has already come forward with easy home financing solutions for potential buyers.

Ghadeer Townhomes is a gated community located amidst serene lakes in a picturesque living environment and offers direct access to the Lakes Community Center which comprises various recreational and retail outlets. It also includes the Ghadeer Neighbourhood Park and a swimming pool of its own.

Investors have the option of choosing from five different types of Mediterranean-styled townhomes, with sizes ranging from 2485 to 3153 Sq. Ft. The three bedroom Ghadeer Townhomes, features spacious verandahs, terraces, balconies, two car parking spaces for each home, and gardens.

The Emaar Sales Director, Saif Al Mansoori said "The Lakes is a well-established residential community and is very much in demand by the investors, who prefer the comfort of villa living or townhouse. Also, at the moment, the supply of townhomes is limited to Dubai, and there is an increased demand for independent homes with gardens and other amenities. Ghadeer sinks with this need."

He added that Ghadeer has the advantage of, being located within the Emirates Living neighbourhood, which comprises The Springs, The Greens, The Meadows, The Views and Emirates Hills. The residents get to enjoy the amenities such as a flourishing community center, day care centers, shopping outlets, renowned schools and nurseries. All homes within Ghadeer have the additional advantage of providing privacy to residents, as the homes have gardens enclosed within walls.

Ghadeer is situated in the north-eastern boundary of The Lakes, which already comprises four communities namely Forat, Deema, Maeen and Zulal.

Labels: Emmar, Investment Property, New Developments, Residential, Villa Projects

"; Although the office rents in Dubai are on the lower side in comparison to the global standards, the office market in Dubai has generated a return of more than twenty percent on investment, which is considered to be one of the highest in the world.

Increasing demand for Grade A office space, coupled with minimal vacancies, has led to a situation wherein new projects are grabbed away within days. To add to this, healthy policies and economic conditions have resulted in more companies getting settled in Dubai, boosting up the rental values further.

The highest increase have been recorded in Sheikh Zayed Road and New Dubai areas, with rental rates ranging from Dh.300 to Dh.350 per square foot on an average, due to minimal vacancies.

Although, due to increasing rentals, there are probabilities of the small and medium sized companies relocating their offices to other emirates such as Abu Dhabi, Ajman or Ras Al-Khaimah, where the rents are comparatively lower, the continued supply of office space in the market is expected to stablilize the prices. As of now, about 50 million square feet of office space is expected to come up by 2010.

Labels: Commercial Property, Dubai Real Estate, Investment Property, Office Space

"; Developers and Analysts in Dubai are of the opinion that Dubai real estate could witness more institutional investment, due to the regulation issued by the government regarding safeguarding the payments of property buyers.

As per the regulation, published recently in the Official Gazette, the payment installments for off plan property will be paid into escrow accounts (also called guarantee accounts or trust accounts), which are authorized by the Dubai Land Department, along with an approved bank. The capital in the account will be released to the developer only when the construction milestones are met.

Prior to the issuance of this law, the investors money was unfettered. In the opinion of Tom O'Grady, a real estate partner at the Dubai office of global legal services, the regulation would prompt institutional investors such as insurance companies, banks and fund managers to invest huge sums into the Dubai property sector. He mentioned that the increase in the number of institutions entering the market, by itself, strongly indicates their growing confidence. And as far as Dubai is concerned, this could be another step forward in the right direction.

In fact, an article in the law states that a percentage of the project value should be retained in the escrow account for a year after the registration of all units. O'Grady mentioned that this will surely boost investor confidence, as end users could be confident about the quality of their property and they will have a hold over the developer in case any rectification of structural problems is required.

The President and CEO of Omniyat Holdings, Mehdi Amjad, mentioned that the law could potentially alter the investors profile in the Dubai property sector, and the realty market will witness a new flow of overseas investors with a very different demographic profile, in comparison to the investors who have been currently investing in the Dubai property sector from the time the property market was open to foreigners. Amjad mentioned that institutional investors, until now, were hesitant to invest in off-plan developments due the lack of security of their investments.

Even the developers seem to have spoken favoring the law, despite the fact that escrow accounts would restrict the developers’ access to any off-plan payments, leading to possible cash flow problems.

Sanjeet Joher, the COO of KM Holding, said "Such legislation is required for protecting the legitimate developers and consumers. This will help the Dubai real estate market and will leave a positive impact on the economy."

Labels: Investment Property, Latest News, Property Law, Real Estate News

"; The residents residing in homes constructed by Emaar Properties are not permitted to let their properties on short-term basis.

Emaar has sent circulars placing certain restrictions and has asked the residents to keep tab on illegal activities. The circulars were sent to residents in Emaar communities of The Greens, The Springs and such others. The circular states that the villas and apartments should not be let for short periods or used as bachelor accommodation. The circular has also asked residents to keep Emaar informed in case anyone violates the rules or employs housemaids without a sponsor.

When the residents were contacted, it was found that while majority of residents supported the neighbourhood watch-style appeals, they were not supportive of the ban against letting out their homes while on vacation.

A UK designer living in the Springs community mentioned that she agrees with Emaar about the neighbourhood watch, but expressed unhappiness that while on a vacation, she would want to rent her property, just as she would do in any other place.

However, according to Emaar, the rules are being enforced keeping the interest of safety and security of the residents and homeowners. The circular mentions that short-term holiday lets are not permitted as per the agreement signed between the developer and the purchaser. However, despite this, short-term accommodation of Emaar properties is being frequently advertised on websites and newspapers.

According to Walter Halt, an independent property consultant, this was being done, due to the fact that there is no federal law on the subject.

"A law concerning how communities are managed is yet to be finalized, which indicates that all master developers bring up their own rules regarding community management."

Labels: Emmar, Investment Property, Property Law, Rentals

"; Landmark Real Estate Investment Management (LRIM) plans to invest Dh.100 million in a three star hotel in the Dubai Industrial Park (DIP).

LRIM, is a fund manager based in Dubai, and is making investment through its Landmark Real Estate Opportunity Fund launched during September 2005.

The fund has been invested in nearly ten real estate projects throughout UAE. According to Landmark's COO, Riyaz Jivanjee, this is the first hotel project in their portfolio.

The property will be managed by Copthorne Hotels and Millennium hotels under the brand Kingsgate Hotel and Resorts.

The property is expected to comprise 200 hotel rooms and forty suites. The preliminary design works has been agreed, and the hotel is expected to open during second quarter of 2009.

The Chief Executive Officer of LRIM, Chris Purdon, said "The project has been designed to meet the needs of leisure and business travelers and capture an investment opportunity due to the difference in demand and supply for mid-scale accommodation of business visitors to Dubai."

Labels: Dubai Industrial City, Investment Property, New Hotels, Real Estate Projects

"; Over the past few months, property projects that are worth more than Dh.100bn have been launched in Abu Dhabi, says the organizers of the Abu Dhabi Real Estate and Investment (IREIS 2008) property show.

The Director of Dome Exhibitions, Anoine Georges, said "Until last October, Abu Dhabi had seen real estate project announcements worth Dh.240bn. But in a time span of less than nine months, the figure has gone up by nearly fifty percent and has touched Dh.333.8bn, and this growth is expected to continue."

Among the recent projects in Abu Dhabi are: The Green Community by Masdar, the Dh.11bn Desert Island project by the Toursim Development and Investment Company, the Dh.7bn Building Materials City, and the Dh.7.34bn Marina Rise by Eshraq.

According to Abu Dhabi Chamber of Commerce and Industry, the investments in the construction and realty sector in Abu Dhabi are expected to contribute Dh.40 billion to the GDP of the emirate this year.

Georges said that almost every project being launched in Abu Dhabi, currently, is aimed towards high-income earners. "It is only a matter of time before the developers target the middle-income segment, a segment with huge potential," Georges added.

Labels: Abu Dhabi, Investment Property, New Developments, Real Estate News

"; Phase one of the Meydan City development, located at Dubai-Al Ain Road, next to Dubai Properties, in close contact with Meydan Racecourse, has already been sold out.

Located seven kilometers from the Dubai International Airport, and only a five minutes drive from Burj Dubai, Shaikh Zayed Road and the Dubai Festival City, Meydan City occupies 40million Sq.ft of space in about fifteen million square feet of land.

The Chairman of Meydan, Saeed Al Tayer, mentions that the Meydan City has been quickly purchased by the investors who are well aware of the potential of such a location.

"With its strategic positioning as the future inner city of Dubai, coupled with its lush greenery and waterways and its proximity to Ras Al Khor Wildlife Sanctuary, it's no surprise as to just how popular the development has already become", he adds.

The plots in the community has waterfront, canals and promenade views.

The Meydan Marina, the centerpiece is likely to be located at the heart of the development offering more than eighty luxury boats and yachts. A tramline is also planned to be included, which is likely to operate from the Meydan city to Maydan Racecourse, carrying about ten thousand passengers every hour.

The Maydan Racecourse is likely to be opened by the time of Dubai World Cup meeting 2010, and will cover 76million sq.ft. of land area.

Labels: Investment Property, Meydan City, New Developments

"; Abu Dhabi is currently doing well in the property sector, and the recent Cityscape exhibition has only added to this excitement. However, the truth is that these major construction activities taking place in Abu Dhabi currently, is not being considered as a major threat to its matured neighboring emirate, Dubai.

It is a different kind of market, and the motivating projects that are being carried out at Abu Dhabi will bring about a balance in the overall profile of UAE as a business, residential and holiday destination.

However, whether Dubai or Abu Dhabi is a better investment option, will depend on individual requirements of the buyer. The massive demand for commercial and residential property in Abu Dhabi is actually soaring up the prices. However, the major supplies currently reaching the Dubai market, and the progress of the emirate in offering world-class infrastructure, will actually lure investors to Dubai who intend to occupy their properties very shortly.

However, this major growth of Abu Dhabi is a real booster for the UAE economy. This is clearly indicated by the project values which has touched 170 percent increase last year in comparison to 2005. With several new projects coming up, this figure is expected to increase even further during the current year.

The population in Abu Dhabi will be doubled in ten years and about 2,50,000 housing units will be required. This bigger picture indicates long-term sustained growth of Abu Dhabi market.

This optimism in Abu Dhabi is the result of combined efforts of tourism, leasehold ownership, development of infrastructure and international airport expansion, which will help in maintaining the prominence of the capital in the real estate market.

Labels: Abu Dhabi, Dubai Real Estate, Investment Property

"; The youth in the GCC have begun to take interest in the development of property market, and as a result the real estate industry has begun to change shape. The developers and sellers in the Middle East are now said to be focusing on the 20-35 age group category, rather than the 30-50 age group category of buyers. The situation is the same worldwide, as the normal age for first time buyers is dropping.

A major reason for such a situation is due to the fact that UAE and such other countries have a large population of highly paid young professionals who are actually responsible for the growth of the knowledge-based economy of the region. Hence there is an increase in the number of young buyers who are snapping up freehold property in the UAE, which indicates that the market in the country has now grown on par with the international scene.

The positive climate coupled with affordable property, is luring young investors to consider probable investments in hot properties like Discovery Gardens and Dubai International City. Due to such changes in the scenario, the property sector needs to get acquainted with this major segment – the youth. The sellers who think that the 20-35 age groups belong to the category of inexperienced lots, they are mistaken. The youth today are very much aware of the rules and regulations of real estate investments and the latest trends. They can also easily recognize property issues, and hence take into consideration all aspects before making the final investment.

Now there are plenty of options such as low interests, long term financing options etc from the banks of UAE, and many middle-class and young youths are now considering property purchase as a good investment option.

Labels: Investment Property

"; The Ajman Government is all set to make the place more tourist and investor friendly, and is making initiatives towards attracting investors through a series of projects, The Chairman of Ajman Municipality and Planning Department, Sheikh Rashid bin Humaid Al Nuaimi, has revealed that Ajman is investing in hospitality, infrastructure, and other environmental projects to woo tourists and investors alike. He also mentioned that Ajman is in the process of entering into an agreement with a company for developing a master plan for the emirate.

Real Estate and Housing is said to be the top-most priority among Ajman’s developmental agenda. In addition to the real estate projects that are under construction on Emirates Road, Emirates City and Al Amira Village, three others are in pipeline. The total investment for the entire five projects is about Dh.20 to 25 billion.

Ajman’s next priority is the sanitation project, which is likely to get operational by the end of the year and will connect most emirates. Towards mid-2008, this sanitation plant is likely to connect the entire emirate to the project.

Next in-line is the finalization of the road network, which is due within a couple of months. Sheikh Rashid stated that a budget of Dh.150 to 160 million has been allocated for 2007, though in all possibilities, it is likely to exceed the allocations to keep pace with developmental needs.

Ajman Government also has plans to set up a special department for developing hospitality and tourism industries in the emirate. Also the industries in Ajman are advised to comply with a set of environmental guidelines prepared by the Government and a committee is set up to identify specific pollutants and the means for disposal. Sheikh Rashid added that a strict measure will be enforced for closure of firms that ignore environmental limits.

Labels: Ajman, Investment Property

"; The Dubai Land Department’s land transactions witnessed an increase from Dh.15.334 billion to Dh.65.169billion, as per the figures revealed by the department. A big portion of the transactions were taken up by mortgages, thereby ending the year at Dh.40.58bn.

The cumulative transactions during 2006 increased by 462.5 percent, which is much higher than the level of 2004 which recorded Dh.11.587bn. A report on the real estate sector by EFG-Hermes, an investment bank, says that though the real estate market in Dubai has become more fragmented with a large number of developers having divested most of their land banks to private developers, more than fifty percent of the land bank of Dubai is still in the hands of major players like Nakheel and Dubai Properties.

The year 2006 witnessed cash sales of 2613, donations of property and land being 369 and 1960 mortgage transactions. According to the land department reports, the cash sales were spread across 102 districts in Dubai. The open spaces sales underwent 2,206 transactions that involved 3.31 million sq m with a total of Dh.45.68bn., while the sale of developed land comprised of 2.15 sq m. Emirates Hills Second is reported as the top selling district, which comprised of 7.18 percent of the total sales of land with an average price of approximately Dh.1,016.87 per sq.ft. Emirates Hill Second was also the top most in the list of areas that witnessed the largest number of deals with as many as 403 sales being registered. This was followed by Marsa Dubai, with 5.32 percent.

Labels: Investment Property

"; Dubai Properties aimed investors and business leaders from the Asia-Pacific region at the recently concluded first UAE-Asia Investment Forum held along with Global Entrepolis at Singapore (GES) 2006.

GES 2006 was a four-day event and had a multitude of events on connecting
businesses around the world. It is a platform where participants, delegates and
exhibitors were offered opportunities to forge partnerships, secure funding,
share expertise and network.

Dubai Properties presented investment outlooks for all of its residential and commercial master developments including Jumeirah Beach Residence, Business Bay, Culture Village and The Villa at the UAE-Asia Investment Forum.

The delegation met Singapore government officials and discussed co-operative business development strategies with chief officers and senior executives from real estate and financial institutions in the Asia Pacific region.

The master developer was the Platinum Sponsor of the event. It attracted over 15,000 visitors from over 70 countries, and provided investors with information about business expansion opportunities and investment solutions in Singapore.

Dubai Properties participation in the first UAE-Asia Investment Forum was part of its international business strategy to project the UAE as a potential market hub.

Labels: Investment Property

"; Commercial property, including office and retail space, is set to dominate the returns table for investors in 2007 and 2008, analysts have said.
Supply of office and retail spaces, particularly in Dubai and generally in the UAE, will fall short of demand by at least 30 per cent this year, continuing the trend from 2005, and maintaining upward pressure on commercial rents.

This comes as good news for investors in commercial property in the emirate, who can expect returns of more than 16 per cent per annum in 2006 and 2007, which is about twice the return from residential property. Rising commercial rents in 2005 have investors in these spaces making between 12 and 14 per cent returns, compared with residential investment returns ranging between six and eight per cent.

Dubai’s office space rates increased by a minimum of 20 per cent in the fourth quarter of 2005 over the previous quarter, according to the numbers tracked by the research department of Asteco, the property management company. “There is continued expansion of existing companies in Dubai and influx of new businesses seeking to set up an office in Dubai,” said John Allen, Director of Consultation, Research and Valuations at Asteco. “And there are limited new supplies coming on stream, which are insufficient to match demand.” According to a recent research report by global commercial property marketing and research firm Colliers, office rents have more than doubled in Dubai since 2002.

“Office space remains at a premium in the city, with near full occupancy across most primary and secondary properties.The paucity of available space of any classification ensures that rental rates continue to rise,” the report said.

Large numbers of office occupiers have been unable to either upgrade or source space for expansion, the report goes on to say. “Tenant surveys now suggest that over 40 per cent of occupiers are at least passively interested in finding new premises.

“Dubai is a market which has traditionally resisted preletting but over the last 12 months the practice has become more common, with tenants securing space well in advance of development completion dates,” Colliers said.

Given the pent-up demand, developers are now seeking to sell office spaces to end-users rather than investors. “This gives us a certain modicum of control over the profile of those who occupy our buildings,” a developer said, “which also helps us to maintain a certain value.” This would be possible, however, only in the freehold areas and would, therefore, have no effect on the current rent spiral.

Labels: Investment Property