Dubai property prices beginning to witness the Metro effect
Tuesday, June 30, 2009
The prices of properties located close to metro stations in Dubai are already beginning to rise, marking the first signs of a Metro effect on the property market, reported analysts in Dubai.
The Jumeirah Lakes Towers (JLT) on Sheikh Zayed Road, located directly opposite the Dubai Marina station are being sold for 6.5 percent more than units in buildings located further away. The difference in prices could equate to tens of thousands of dirhams, pointed out a Dubai-based real estate agency.
Several other agencies have also reported to have been receiving enquiries about properties located in proximity to the metro stations. The trend implies that with just three months left for the opening of Metro's Red Line, home buyers are already beginning to take into consideration the ease of transport when choosing their home.
In the rental market, few mentioned that there was a clear difference in values, which would probably emerge only after the lines open on September 9th. Several residents feared that landlords would take advantage of the locations in proximity to the Metro and raise rents.
The Sales Director at Landmark Properties, Michael, mentioned that units at Indigo Tower, a JLT building near the station, was going for around Dh.800 per square foot, compared to Dh.750 across similar-quality buildings in JLT.
The Head of Property Management at the Dubai-based property portal Gowealthy. com, Andrew Delport, mentioned that units in proximity to the Metro will be the first to recover, once the system was up and running.
Delport considers Dubai Marina to have a similar trend, with the Metro on the Marina side of the freeway. The tenancies are more vibrant here than in other places, offering good value for money.
Dubai Marina is the most popular area for leasing, accounting for 30 percent of new annual lease contracts in Dubai, according to the second quarter 2009 report by Landmark Advisory.
A sales consultant for powerhousedubai.com, Ian Hainey, mentioned that estate agents have been keen to highlight any available access to the Metro. However, so far there has been no drastic difference in rents between properties near the Metro and others. The uncertainty would last until it is known which stations would exactly open on September 9th, and that would have an impact on decision-marking of prospective tenants.
The Jumeirah Lakes Towers (JLT) on Sheikh Zayed Road, located directly opposite the Dubai Marina station are being sold for 6.5 percent more than units in buildings located further away. The difference in prices could equate to tens of thousands of dirhams, pointed out a Dubai-based real estate agency.
Several other agencies have also reported to have been receiving enquiries about properties located in proximity to the metro stations. The trend implies that with just three months left for the opening of Metro's Red Line, home buyers are already beginning to take into consideration the ease of transport when choosing their home.
In the rental market, few mentioned that there was a clear difference in values, which would probably emerge only after the lines open on September 9th. Several residents feared that landlords would take advantage of the locations in proximity to the Metro and raise rents.
The Sales Director at Landmark Properties, Michael, mentioned that units at Indigo Tower, a JLT building near the station, was going for around Dh.800 per square foot, compared to Dh.750 across similar-quality buildings in JLT.
The Head of Property Management at the Dubai-based property portal Gowealthy. com, Andrew Delport, mentioned that units in proximity to the Metro will be the first to recover, once the system was up and running.
Delport considers Dubai Marina to have a similar trend, with the Metro on the Marina side of the freeway. The tenancies are more vibrant here than in other places, offering good value for money.
Dubai Marina is the most popular area for leasing, accounting for 30 percent of new annual lease contracts in Dubai, according to the second quarter 2009 report by Landmark Advisory.
A sales consultant for powerhousedubai.com, Ian Hainey, mentioned that estate agents have been keen to highlight any available access to the Metro. However, so far there has been no drastic difference in rents between properties near the Metro and others. The uncertainty would last until it is known which stations would exactly open on September 9th, and that would have an impact on decision-marking of prospective tenants.
Labels: Dubai Real Estate, Latest News, Property Prices
Emaar, Dubai Holdings under consolidation talks
Saturday, June 27, 2009
As per the statement issued by the Dubai Government Media Office, four large development firms in Dubai - Emaar Properties PJSC, Sama Dubai LLC, Dubai Properties LLC and Tatweer LLC, have come together to hold one of the larges banks in Dubai, and have begun discussions to join together and form a larger entity, intended to rise up to the current challenges and to transform Dubai into a global city.
The proposed consolidation, when implemented, would create the biggest developer ever, in the MENA and Asian regions.
Dubai Properties, Sama Dubai and Tatweer are a part of Dubai Holdings, the investment arm of Dubai Government, while Emaar Properties, is on the verge of completing Burj Dubai, the world's tallest tower, 32.5 percent of which, is owned by the Dubai Government. Emaar also finds its listing in Dubai Financial Market.
The proposed consolidation of these leading real estate units will mark the beginning of a new chapter in the annals of global real estate, apart from building on the remarkable achievements in Dubai during the past thirty years.
The Royal Bank of Scotland PLC is the Advisor of Emaar Properties, while Merrill Lynch International represents the interests of Dubai Holdings.
The statement revealed that the firms are almost finalizing the proposed consolidation, including valuation of various entities, and assessment of potential transaction structures. Discussions are also on with the respective regulatory authorities, the statement said.
The Chairman of Dubai Holdings, Mohammad Al Gergawi, mentioned that consolidating these companies with Emaar is a natural progression towards evolution of Dubai real estate landscape, offering benefits to all stakeholders.
By clubbing forces, the largest combined entity will be given an unparalleled platform to maximize the opportunities in local and international markets. The combined entity has a clear strategy to better the positioning of Dubai as a world-leading hub in property development and management.
The Chairman of Emaar, Mohammad Ali Al Abbar, mentioned that there could be exceptional synergies between Dubai Holdings and Emaar's major real estate businesses. These comprehensive discussions are driven by shared vision regarding the consolidation of our respective visible success stories till date and the aim by the companies for creation of a world-class group, ideally positioned to help and support the current development of Dubai as a world-leading hub.
The proposed consolidation, when implemented, would create the biggest developer ever, in the MENA and Asian regions.
Dubai Properties, Sama Dubai and Tatweer are a part of Dubai Holdings, the investment arm of Dubai Government, while Emaar Properties, is on the verge of completing Burj Dubai, the world's tallest tower, 32.5 percent of which, is owned by the Dubai Government. Emaar also finds its listing in Dubai Financial Market.
The proposed consolidation of these leading real estate units will mark the beginning of a new chapter in the annals of global real estate, apart from building on the remarkable achievements in Dubai during the past thirty years.
The Royal Bank of Scotland PLC is the Advisor of Emaar Properties, while Merrill Lynch International represents the interests of Dubai Holdings.
The statement revealed that the firms are almost finalizing the proposed consolidation, including valuation of various entities, and assessment of potential transaction structures. Discussions are also on with the respective regulatory authorities, the statement said.
The Chairman of Dubai Holdings, Mohammad Al Gergawi, mentioned that consolidating these companies with Emaar is a natural progression towards evolution of Dubai real estate landscape, offering benefits to all stakeholders.
By clubbing forces, the largest combined entity will be given an unparalleled platform to maximize the opportunities in local and international markets. The combined entity has a clear strategy to better the positioning of Dubai as a world-leading hub in property development and management.
The Chairman of Emaar, Mohammad Ali Al Abbar, mentioned that there could be exceptional synergies between Dubai Holdings and Emaar's major real estate businesses. These comprehensive discussions are driven by shared vision regarding the consolidation of our respective visible success stories till date and the aim by the companies for creation of a world-class group, ideally positioned to help and support the current development of Dubai as a world-leading hub.
Labels: Dubai City, Emaar, Latest News
DCCI strongly backs 100 percent foreign ownership of businesses
Saturday, June 20, 2009
The Dubai Chamber of Commerce and Industry (DCCI) has strongly supported the plan to allow foreign investors 100 percent ownership of locally-based companies in certain sectors of the economy.
At present foreigners should have UAE national as a sponsor, and are given the right to own only 49 percent of the company, if they wish to begin business outside the designated free zones.
The business group supports the amendments of proposed companies' law, in few economic sectors, with big investments and high technology that adds value to UAE economy, said Hamad Buamim, the Director General of DCCI yesterday.
The Government has been considering the revision of Companies Law for more than two years now. It has been pressurized from the Europe and the USA to permit greater foreign ownership of companies, based in the UAE.
According to analysts, such a move could benefit the economy and attract more investments, although, foreign investments in already established free zones could become pressurized.
The Director at Dubai's Arqaam Capital, Ali Khan, said that it is potentially good for the economy, but the free zones might feel pressured, as they need to attract investments too.
At present foreigners should have UAE national as a sponsor, and are given the right to own only 49 percent of the company, if they wish to begin business outside the designated free zones.
The business group supports the amendments of proposed companies' law, in few economic sectors, with big investments and high technology that adds value to UAE economy, said Hamad Buamim, the Director General of DCCI yesterday.
The Government has been considering the revision of Companies Law for more than two years now. It has been pressurized from the Europe and the USA to permit greater foreign ownership of companies, based in the UAE.
According to analysts, such a move could benefit the economy and attract more investments, although, foreign investments in already established free zones could become pressurized.
The Director at Dubai's Arqaam Capital, Ali Khan, said that it is potentially good for the economy, but the free zones might feel pressured, as they need to attract investments too.
Labels: Latest News, UAE
ETA announces hand-over of Liberty House units
Thursday, June 18, 2009
ETA Star Property Developers has begun hand-over of its Dh.700mn Liberty House units in the Dubai International Financial Center (DIFC).
The L-shaped building has 140 offices, 124 studios, 68 single bedroom and 28 double bedroom apartments. The studios are worth over Dh.1million, which the single bedroom apartments are worth about Dh.1.6mn.
The residential units have been furnished as a 'goodwill' gesture, due to the delay of three months, said Vijay Chugh, Senior General Manager - Projects, ETA Star.
Although there has been a slight adjustment in prices, DIFC continues to be one of the most stable areas in Dubai, in terms of rental rates and prices. There is also the 'retail tunnel' being developed here, which is likely to connect The Gate at DIFC to a leading city mall. All the buildings in the DIFC area will be directly linked to the tunnel.
The Executive Director of ETA Star, Abid Junaid, mentioned that about Dh.1.5bn worth of company projects would be delivered this year.
ETA is going ahead with all its launched projects. Business sentiment is getting more positive and is reflected in terms of increase in transaction volumes, he said.
Currently the prices are bottoming out, and towards the last quarter of this year, a recovery is expected in terms of prices and volume. Increase in prices and volume, would be inter-dependent on each other, he added.
The L-shaped building has 140 offices, 124 studios, 68 single bedroom and 28 double bedroom apartments. The studios are worth over Dh.1million, which the single bedroom apartments are worth about Dh.1.6mn.
The residential units have been furnished as a 'goodwill' gesture, due to the delay of three months, said Vijay Chugh, Senior General Manager - Projects, ETA Star.
Although there has been a slight adjustment in prices, DIFC continues to be one of the most stable areas in Dubai, in terms of rental rates and prices. There is also the 'retail tunnel' being developed here, which is likely to connect The Gate at DIFC to a leading city mall. All the buildings in the DIFC area will be directly linked to the tunnel.
The Executive Director of ETA Star, Abid Junaid, mentioned that about Dh.1.5bn worth of company projects would be delivered this year.
ETA is going ahead with all its launched projects. Business sentiment is getting more positive and is reflected in terms of increase in transaction volumes, he said.
Currently the prices are bottoming out, and towards the last quarter of this year, a recovery is expected in terms of prices and volume. Increase in prices and volume, would be inter-dependent on each other, he added.
Labels: ETA-Star, Latest News
RAK Govt. to take-over La Hoya Bay island property project
Tuesday, June 09, 2009
The RAK Government has agreed to take-over the Dh.2billion La Hoya Bay island property project, which was under threat due to the collapse of its developer.
The decision came as a relief to several hundreds of investors who had invests all their savings on the flagship project of the Ras Al Khaimah Investment Authority (RAKIA), located on the man-made island, Al Marjan.
The Chief Executive of RAKIA, Khater Massaad, Sheikh Saud bin Saqr, the Crown Prince and Deputy Ruler of RAK, confirmed that the investors will not be put into trouble, and that the project will surely be continued.
The investors had urged the Government to come to their rescue, as the original developer of the project, Khoie Properties, became insolvent and stopped construction. A senior board member of Khoie Properties was imprisoned, as it failed to honour a cheque for Dh.57mn, in favour of the Government to pay for the land on the island.
RAKIA has requested the court to designate an official receiver for Khoie Properties. Another developer would be appointed to complete the first phase of La Hoya Bay, which includes seven residential buildings, comprising seven storeys.
Rakeen, a property arm of the Government, may be designated as the new project manager, as it is also the master developer of the whole island. Once this is done, Rakeen will open an escrow account and award construction of the project to a new company within a month, and the project is also likely to be re-named.
Khoie Properties had already received a 30 percent down-payment from investors, worth Dh.280mn, with the balance due on completion. Now, Rakeen proposes to ask investors to pay another 50 percent of the agreed price in five installments to finance construction, with only 20 percent due on completion. Rakeen said it would absorb any loss of initial downpayment, although it is now unrecoverable. However, Rakia will not take up any liabilities of Khoie Properties.
La Hoya Bay project was planned to be developed in three phases. The second and third phases were themed as Business Village and Regency respectively. The land for the two phases may be sold to other developers, if interested.
This RAK project is another instance which indicates the government intervention on the UAE property market, which has suffered steep price declines and growing defaults during recent months.
[Source The National ]
The decision came as a relief to several hundreds of investors who had invests all their savings on the flagship project of the Ras Al Khaimah Investment Authority (RAKIA), located on the man-made island, Al Marjan.
The Chief Executive of RAKIA, Khater Massaad, Sheikh Saud bin Saqr, the Crown Prince and Deputy Ruler of RAK, confirmed that the investors will not be put into trouble, and that the project will surely be continued.
The investors had urged the Government to come to their rescue, as the original developer of the project, Khoie Properties, became insolvent and stopped construction. A senior board member of Khoie Properties was imprisoned, as it failed to honour a cheque for Dh.57mn, in favour of the Government to pay for the land on the island.
RAKIA has requested the court to designate an official receiver for Khoie Properties. Another developer would be appointed to complete the first phase of La Hoya Bay, which includes seven residential buildings, comprising seven storeys.
Rakeen, a property arm of the Government, may be designated as the new project manager, as it is also the master developer of the whole island. Once this is done, Rakeen will open an escrow account and award construction of the project to a new company within a month, and the project is also likely to be re-named.
Khoie Properties had already received a 30 percent down-payment from investors, worth Dh.280mn, with the balance due on completion. Now, Rakeen proposes to ask investors to pay another 50 percent of the agreed price in five installments to finance construction, with only 20 percent due on completion. Rakeen said it would absorb any loss of initial downpayment, although it is now unrecoverable. However, Rakia will not take up any liabilities of Khoie Properties.
La Hoya Bay project was planned to be developed in three phases. The second and third phases were themed as Business Village and Regency respectively. The land for the two phases may be sold to other developers, if interested.
This RAK project is another instance which indicates the government intervention on the UAE property market, which has suffered steep price declines and growing defaults during recent months.
[Source The National ]
Labels: Latest News, Ras Al Khaima
Dubai developers announce price reduction, payment-break options
Saturday, June 06, 2009
Leading property developer Deyaar is expected to announce a reduction in prices on four of its projects, for the comfort of investors.
Deyaar also announced that about 470 units out of its four projects in the Dubai Silicon Oasis will be handed over this month, which includes Coral, Ruby, Jade and Sapphire Residences.
The officials at the company is hoped to announce a reduction in price schedule for the four projects soon. The buyers will be offered an easy payment plan, which offers five-year payment tenure.
Deyaar plans to deliver a total of 1300 units this year, despite the bad economic situation, said Markus Giebel, Chief Executive of Deyaar. Recently Deyaar delivered about 312 units at its Madison Residency at Tecom Free Zone. Two other projects - Citadel, a commercial tower, and Hamilton Residency, a residential tower are on track for completion towards end of this year.
Deyaar is also focusing on under-served markets, such as middle-income housing. Deyaar is considering five markets in the MENA region as untapped sources of business.
In the meanwhile, Hydra Properties said that it is taking a series of measures to boost investor confidence at its Dh.2bn Hydra Village development at Abu Dhabi.
Among the measures taken by Hydra are plans to offer a payment-break facility to its customers, who make payments on time. The customers of Hydra Village Abu Dhabi need not make payments until beginning of 2010.
However, the CEO of Hydra Properties, Dr. Sulaiman Al Fahim, has ruled out any possibility of buying back units from customers, as the prices offered by Hydra are already 10 percent below original market rates.
Currently a detailed construction progress plan for Hydra Village is in-place, as a part of company's commitment towards investors. The Hydra Village Abu Dhabi project is due for completion by 2011. The Hydra Village Abu Dhabi project, which includes residential villas, is being financed by Reem Finance.
Deyaar also announced that about 470 units out of its four projects in the Dubai Silicon Oasis will be handed over this month, which includes Coral, Ruby, Jade and Sapphire Residences.
The officials at the company is hoped to announce a reduction in price schedule for the four projects soon. The buyers will be offered an easy payment plan, which offers five-year payment tenure.
Deyaar plans to deliver a total of 1300 units this year, despite the bad economic situation, said Markus Giebel, Chief Executive of Deyaar. Recently Deyaar delivered about 312 units at its Madison Residency at Tecom Free Zone. Two other projects - Citadel, a commercial tower, and Hamilton Residency, a residential tower are on track for completion towards end of this year.
Deyaar is also focusing on under-served markets, such as middle-income housing. Deyaar is considering five markets in the MENA region as untapped sources of business.
In the meanwhile, Hydra Properties said that it is taking a series of measures to boost investor confidence at its Dh.2bn Hydra Village development at Abu Dhabi.
Among the measures taken by Hydra are plans to offer a payment-break facility to its customers, who make payments on time. The customers of Hydra Village Abu Dhabi need not make payments until beginning of 2010.
However, the CEO of Hydra Properties, Dr. Sulaiman Al Fahim, has ruled out any possibility of buying back units from customers, as the prices offered by Hydra are already 10 percent below original market rates.
Currently a detailed construction progress plan for Hydra Village is in-place, as a part of company's commitment towards investors. The Hydra Village Abu Dhabi project is due for completion by 2011. The Hydra Village Abu Dhabi project, which includes residential villas, is being financed by Reem Finance.
Labels: Latest News, Market Trends
UAE property sector sees first ray of hope: HSBC Report
Tuesday, June 02, 2009
The UAE property market has begun to bottom out, with prices beginning to stabilize, but the values are likely to drop further, with more properties entering the market, a HSBC report said.
The property prices in the UAE increased by 4 percent and 5 percent, month-on-month in April and May respectively, but continued to remain below 23 percent from its peak during September 2008.
With growing signs of levelling out of property prices in the UAE, the Gulf markets surged yesterday, with the Doha and Dubai markets recording their biggest gains in months.
Dubai stocks increased their most in more than three months, following the HSBC report that UAE property prices may be stabilizing. Even Qatar property sector received a major boost, with the government’s decision to buy real estate portfolios of local banks.
The Head of UAE Equity Research at HSBC Global Research, David Lepper, said that the market data during April and May have shown a range of positive indicators, such as rise in property prices, the banks loosening their lending criteria and increase in volumes.
Gulf markets have brought in considerable interest from international investors during recent months, as the global emerging markets have sent signals that the recession is easing out.
UAE property prices met with a steep decline in prices from their peak in September last year, with the financial crisis putting a sudden halt to the five-year boom, further contributed by high oil prices and cheap funds.
Even other property markets in the region have witnessed decline, although Dubai has seen 65 percent drop in property prices from its peak in September 2008.
During the next five years, Dubai economy would depend on more sustainable sectors, such as transport, health care and financial services, thereby undergoing a structural shift, said Dr. Omar bin Sulaiman, the DIFC (Dubai International Financial Centre) Governor.
Abu Dhabi also has seen an increase in property transactions during recent months, with more finished properties hitting the market. Several banks, including Barclays and Standard Chartered, have eased their lending requirements, while also increasing their loan-to-value ratios.
The property prices in the UAE increased by 4 percent and 5 percent, month-on-month in April and May respectively, but continued to remain below 23 percent from its peak during September 2008.
With growing signs of levelling out of property prices in the UAE, the Gulf markets surged yesterday, with the Doha and Dubai markets recording their biggest gains in months.
Dubai stocks increased their most in more than three months, following the HSBC report that UAE property prices may be stabilizing. Even Qatar property sector received a major boost, with the government’s decision to buy real estate portfolios of local banks.
The Head of UAE Equity Research at HSBC Global Research, David Lepper, said that the market data during April and May have shown a range of positive indicators, such as rise in property prices, the banks loosening their lending criteria and increase in volumes.
Gulf markets have brought in considerable interest from international investors during recent months, as the global emerging markets have sent signals that the recession is easing out.
UAE property prices met with a steep decline in prices from their peak in September last year, with the financial crisis putting a sudden halt to the five-year boom, further contributed by high oil prices and cheap funds.
Even other property markets in the region have witnessed decline, although Dubai has seen 65 percent drop in property prices from its peak in September 2008.
During the next five years, Dubai economy would depend on more sustainable sectors, such as transport, health care and financial services, thereby undergoing a structural shift, said Dr. Omar bin Sulaiman, the DIFC (Dubai International Financial Centre) Governor.
Abu Dhabi also has seen an increase in property transactions during recent months, with more finished properties hitting the market. Several banks, including Barclays and Standard Chartered, have eased their lending requirements, while also increasing their loan-to-value ratios.
Labels: Latest News, Market Trends
Dubai RERA plans global expansion
Tuesday, May 19, 2009
The Dubai RERA (Real Estate Regulatory Authority) plans to expand internationally and serve as an international real estate reference point, with the abbreviated name Menares, officials announced here yesterday.
Menares is the abbreviation for Middle East and North Africa Real Estate Society, and has already been a part of several international property bodies.
The Director-Real Estate Development Department at RERA, Mahmoud Al Burai, said "We are almost in the final stages of establishing Menares. We aim to build a professional real estate market and are serious about being on the top, globally."
RERA is a member of the five organizations controlling the real estate issues across the world, including International Real Estate Federation (FIABCI), the Royal Institute of Chartered Surveyors (RICS), the World Association of Valuation Organization (Wavo), the Asian Public Real Estate Association (APREA) and the Urban Land Institute (ULI).
RERA and Al Burai plans were in-line with that of H.H. Shaikh Mohammed Bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE and Ruler of Dubai.
Although Menares will only serve as a 'reference body' rather than a regulatory one, Al Burai agreed that the authority will be "happy to assist" any country in the region with its own property regulation framework.
Al Burai agreed that all are focusing on Dubai, and using RERA as reference. Menares aims to encourage real estate education, real estate practices and professionalism.
The actual details of collaboration with other organizations are still being discussed.
Menares is the abbreviation for Middle East and North Africa Real Estate Society, and has already been a part of several international property bodies.
The Director-Real Estate Development Department at RERA, Mahmoud Al Burai, said "We are almost in the final stages of establishing Menares. We aim to build a professional real estate market and are serious about being on the top, globally."
RERA is a member of the five organizations controlling the real estate issues across the world, including International Real Estate Federation (FIABCI), the Royal Institute of Chartered Surveyors (RICS), the World Association of Valuation Organization (Wavo), the Asian Public Real Estate Association (APREA) and the Urban Land Institute (ULI).
RERA and Al Burai plans were in-line with that of H.H. Shaikh Mohammed Bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE and Ruler of Dubai.
Although Menares will only serve as a 'reference body' rather than a regulatory one, Al Burai agreed that the authority will be "happy to assist" any country in the region with its own property regulation framework.
Al Burai agreed that all are focusing on Dubai, and using RERA as reference. Menares aims to encourage real estate education, real estate practices and professionalism.
The actual details of collaboration with other organizations are still being discussed.
Labels: Latest News, Middle-East
RERA confirms the new rental index
Thursday, May 14, 2009
The rental calculator on Dubai's RERA (Real Estate Regulatory Authority) website is the new rental index, the RERA officials have confirmed.
During recent weeks, there has been lot of confusion about the rental index. The original rental index was released during end of 2008, but the rates were on the basis of mid-2008 rates, and hence were unrealistic.
A revised index was due during April-end, but the rental calculator was installed unannounced on RERA's website. However, the rental calculator is actually the new rental index.
Bin Galita said the new index is good and more trustable. Beginning January, all disputes coming in to the Rent Committee will be judged on the basis of the current index. Contracts signed from January to March and also previous contracts have all been taken into consideration. The calculator index has been compiled using data from the Ejari website, and after discussions with management companies, agents, and checking listings and site surveys.
The next index is expected to be released in September, after summer. RERA will also share its extensive database with Ajman's ARRA (Ajman Real Estate Regulatory Agency). The federal laws too will be unified, when the same database is shared. Agents in Ajman wishing to market in Dubai will be registered with both ARRA and RERA, Bin Galita said.
Previously agents in Dubai could market in Ajman without being registered there and vice versa. This practice may no-longer be permitted, as agents will have to register in both emirates if they want to market in both Dubai and Ajman.
During recent weeks, there has been lot of confusion about the rental index. The original rental index was released during end of 2008, but the rates were on the basis of mid-2008 rates, and hence were unrealistic.
A revised index was due during April-end, but the rental calculator was installed unannounced on RERA's website. However, the rental calculator is actually the new rental index.
Bin Galita said the new index is good and more trustable. Beginning January, all disputes coming in to the Rent Committee will be judged on the basis of the current index. Contracts signed from January to March and also previous contracts have all been taken into consideration. The calculator index has been compiled using data from the Ejari website, and after discussions with management companies, agents, and checking listings and site surveys.
The next index is expected to be released in September, after summer. RERA will also share its extensive database with Ajman's ARRA (Ajman Real Estate Regulatory Agency). The federal laws too will be unified, when the same database is shared. Agents in Ajman wishing to market in Dubai will be registered with both ARRA and RERA, Bin Galita said.
Previously agents in Dubai could market in Ajman without being registered there and vice versa. This practice may no-longer be permitted, as agents will have to register in both emirates if they want to market in both Dubai and Ajman.
Labels: Latest News, Rentals
Dubai and Ajman to merge property database
Saturday, May 09, 2009
The property watchdogs in Ajman and Dubai have got together to identify the blacklisted developers and agents, and hence have agreed to co-ordinate data in both emirates.
An MOU to this effect was signed between ARRA (Ajman Real Estate Regulatory Agency) and Dubai's RERA (Real Estate Regulatory Agency).
The Chief of Dubai RERA, Marwan bin Ghalita, said that "We will share the same database of agents and developers. If any developer is blacklisted in Dubai, it will also be reflected on their database, and they will be aware of it."
This move follows receipt of complaints that estate agents were working in both emirates, but have been registered with only one.
"We will regulate this kind of activities between the agents too. The establishment of common database will give developers and regulators and investors a clear picture of the market" Ghalita said.
The database will be made available online for people to view. The database is almost ready and will be released soon, said Omar al Barguthi, Head of ARRA.
An MOU to this effect was signed between ARRA (Ajman Real Estate Regulatory Agency) and Dubai's RERA (Real Estate Regulatory Agency).
The Chief of Dubai RERA, Marwan bin Ghalita, said that "We will share the same database of agents and developers. If any developer is blacklisted in Dubai, it will also be reflected on their database, and they will be aware of it."
This move follows receipt of complaints that estate agents were working in both emirates, but have been registered with only one.
"We will regulate this kind of activities between the agents too. The establishment of common database will give developers and regulators and investors a clear picture of the market" Ghalita said.
The database will be made available online for people to view. The database is almost ready and will be released soon, said Omar al Barguthi, Head of ARRA.
Labels: Ajman, Dubai Real Estate, Latest News
Dubai, leading FDI destination in the region
Thursday, May 07, 2009
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.
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
Multiple entry visa for property owners in UAE
Monday, May 04, 2009
Property owners can now enter UAE on a multi-trip entry visa, which permits them for a stay of up to six months, according to a new decree issued by the Interior Ministry.
This move is hoped to improve the local economic environment and offer all fundamentals that would help ensure prosperity and economic growth in the country. The multiple-entry permit can be renewed under certain conditions.
The regulation forms a part of the efforts by the UAE government to introduce adequate regulations to boost the local economic sector and offers all factors that aims to contribute to the growth and prosperity of the local markets and be of benefit to the public.
This initiative would benefit people seeking to bring in their families to the UAE, and this emphasizes the keenness on the part of the government to provide them with family stability.
A new clause has been added to the Article 33 of the new regulation, which states that owners of built-in properties are allowed to stay for a six-month period, after which, the owner can depart to his home country or stay in any of the GCC countries. He can however, enter the country again, after meeting the necessary criteria.
Another new article of the new regulation, states that the owner must submit a multi-trip entry visa, with respect to the property, under the following conditions.
This move is hoped to improve the local economic environment and offer all fundamentals that would help ensure prosperity and economic growth in the country. The multiple-entry permit can be renewed under certain conditions.
The regulation forms a part of the efforts by the UAE government to introduce adequate regulations to boost the local economic sector and offers all factors that aims to contribute to the growth and prosperity of the local markets and be of benefit to the public.
This initiative would benefit people seeking to bring in their families to the UAE, and this emphasizes the keenness on the part of the government to provide them with family stability.
A new clause has been added to the Article 33 of the new regulation, which states that owners of built-in properties are allowed to stay for a six-month period, after which, the owner can depart to his home country or stay in any of the GCC countries. He can however, enter the country again, after meeting the necessary criteria.
Another new article of the new regulation, states that the owner must submit a multi-trip entry visa, with respect to the property, under the following conditions.
- The property should be a built-in property, and should not include owners of vacant lands.
- The title of the property should be obtained from the Property Registration Authority in the emirate, by the owner. Also, the house or the apartment should be wholly owned by the owner.
- The cost of the unit should not be less than Dh.1million. The unit should have the capacity to accommodate the members of the family. The owner can include his spouse and children's details in the visa application, and attach an insurance cover for himself and his family, which would be valid during he period of their stay in the country.
- The fixed income of the owner should not be less than Dh.10,000 or its equivalent in foreign currencies, whether inside or outside the county, although the visa doesn't offer the owner the right to work within the country.
The permit would be considered invalid if any of the above terms are not met. The regulation would be effective from its date of issuance.
Labels: Latest News, Property Law, UAE
RERA's new Rent Increase Calculator helps in stabilizing rents
Saturday, May 02, 2009
Dubai Real Estate Regulatory Authority (RERA)'s website now includes a new Rent Increase Calculator, which halts any uncertainties prevailing in the real estate market.
The calculator has helped reduce the maximum rental increase in few localities, and the rents have now decreased by nearly 50 percent. In order to control spiralling rent rates, RERA had introduced a rental index last year. This year's index is yet to be released.
The calculator limits the maximum rents for all locations in Dubai. A triple bedroom villa in Barsha has a ceiling of Dh.140,000 down by 50 percent from Dh.270,000, compared to rental index of 2008. Similarly, a triple bedroom villa at The Springs now has a ceiling of Dh.160,000 in place, compared to Dh.280,000 fixed last year.
Even Al Karama witnessed a drop of 25 percent (from Dh.280,000 to Dh.135,000) for a triple bedroom apartment. In Garhoud, rents dropped to Dh.105,000 from Dh.240,000, marking a 56 percent drop.
Rents in the Mirdif area are down by 42.5 percent from Dh.20,000 to Dh.115,000 for three bedroom villas. The Managing Director for MENA (Middle East and North Africa) region for Jones Lang LaSalle, Blair Hagkull, said that housing affordability is utmost important for continued growth and competitiveness in Dubai.
The downward pressure on rental rates for mid and long-term is a positive indication, although it has implications for future projections of landlords, he said.
Meanwhile, the global real estate consultancy, Colliers International, in their study said that Dubai has seen a rental drop in residential units by 20 to 40 percent, since the last quarter of 2008.
The calculator has helped reduce the maximum rental increase in few localities, and the rents have now decreased by nearly 50 percent. In order to control spiralling rent rates, RERA had introduced a rental index last year. This year's index is yet to be released.
The calculator limits the maximum rents for all locations in Dubai. A triple bedroom villa in Barsha has a ceiling of Dh.140,000 down by 50 percent from Dh.270,000, compared to rental index of 2008. Similarly, a triple bedroom villa at The Springs now has a ceiling of Dh.160,000 in place, compared to Dh.280,000 fixed last year.
Even Al Karama witnessed a drop of 25 percent (from Dh.280,000 to Dh.135,000) for a triple bedroom apartment. In Garhoud, rents dropped to Dh.105,000 from Dh.240,000, marking a 56 percent drop.
Rents in the Mirdif area are down by 42.5 percent from Dh.20,000 to Dh.115,000 for three bedroom villas. The Managing Director for MENA (Middle East and North Africa) region for Jones Lang LaSalle, Blair Hagkull, said that housing affordability is utmost important for continued growth and competitiveness in Dubai.
The downward pressure on rental rates for mid and long-term is a positive indication, although it has implications for future projections of landlords, he said.
Meanwhile, the global real estate consultancy, Colliers International, in their study said that Dubai has seen a rental drop in residential units by 20 to 40 percent, since the last quarter of 2008.
Labels: Latest News, Rentals
Dubai, Abu Dhabi top cities in the Middle East
Thursday, April 30, 2009
Dubai and Abu Dhabi are the top two cities in the Middle East, reveals the latest global survey report by Mercer, the leading investment services provider.
Followed by the rankings of last year, Dubai has moved up six places in the annual survey from 83 percent last year to 77 percent this year. This increase has been attributed to the improved transport amenities, development of road infrastructure and expansion of international airport and telecommunication amenities and other consumer facilities, the survey reveals.
Meanwhile, Abu Dhabi holds the 84th position this year, compared to 87th place in 2008. This is due to increase in international schools, recreational amenities and development of the airport and increased accessibility to new networks by Etihad Airways, the national airline.
The Mercer rankings are rated based on a point scoring index involving 215 cities across the globe, with New York as the base city. The rankings are considered helpful to governments and major companies.
Followed by the rankings of last year, Dubai has moved up six places in the annual survey from 83 percent last year to 77 percent this year. This increase has been attributed to the improved transport amenities, development of road infrastructure and expansion of international airport and telecommunication amenities and other consumer facilities, the survey reveals.
Meanwhile, Abu Dhabi holds the 84th position this year, compared to 87th place in 2008. This is due to increase in international schools, recreational amenities and development of the airport and increased accessibility to new networks by Etihad Airways, the national airline.
The Mercer rankings are rated based on a point scoring index involving 215 cities across the globe, with New York as the base city. The rankings are considered helpful to governments and major companies.
Labels: Latest News, Middle-East
The Springs, voted the best hotspot for purchase or rent
Tuesday, April 14, 2009
The Springs has been voted as the best hotspot for purchase or rent of property in Dubai during the month of February, reveal the latest findings by the property portal propertyfinder. ae.
The Springs accounted for more than 22 percent rental inquiries during the month, and 13 percent of the total inquiries in February.
The findings reveal that both buyers and renters are looking to move further out of traditional residential hubs in Dubai, to locations such as the Jumeirah Lake Towers, The Springs, and the Discovery Gardens.
The Head of Marketing at propertyfinder, Marcello Sambartolo, said that this survey has revealed interesting statistics, as a total shift in rental interest is noticed towards new residential areas such as Jumeirah Lake Towers and Discovery Gardens, where the rents are more competitive.
According to the data, there is an interest from end-users seeking to invest in Dubai real estate, as it is offering opportunities to capitalize on the drop in housing prices.
The hot spots for Feb'09 are:
To buy (Feb 2009):
1. The Springs - 13.52%
2. Jumeirah Lake Towers - 11.21%
3. Dubai Sports City - 8.03%
4. International City - 8.69%
5. Dubai Marina - 7.85%
To rent (Feb 2009)
1. The Springs 22.69%
2. Discovery Gardens 19.28%
3. The Lake 8.75%
4. Dubai Marina 7.72%
5. Arabian Ranches 6.66%
The Springs accounted for more than 22 percent rental inquiries during the month, and 13 percent of the total inquiries in February.
The findings reveal that both buyers and renters are looking to move further out of traditional residential hubs in Dubai, to locations such as the Jumeirah Lake Towers, The Springs, and the Discovery Gardens.
The Head of Marketing at propertyfinder, Marcello Sambartolo, said that this survey has revealed interesting statistics, as a total shift in rental interest is noticed towards new residential areas such as Jumeirah Lake Towers and Discovery Gardens, where the rents are more competitive.
According to the data, there is an interest from end-users seeking to invest in Dubai real estate, as it is offering opportunities to capitalize on the drop in housing prices.
The hot spots for Feb'09 are:
To buy (Feb 2009):
1. The Springs - 13.52%
2. Jumeirah Lake Towers - 11.21%
3. Dubai Sports City - 8.03%
4. International City - 8.69%
5. Dubai Marina - 7.85%
To rent (Feb 2009)
1. The Springs 22.69%
2. Discovery Gardens 19.28%
3. The Lake 8.75%
4. Dubai Marina 7.72%
5. Arabian Ranches 6.66%
Labels: Latest News, Market Trends, Rentals
Dubai considers new options for selling properties to Britons
Sunday, April 12, 2009
The first-ever mass auction of Dubai properties happened last week.
Earlier several Dubai properties were being purchased by investors in the UK. However, with the Pound value plunging to record-lows, mortgages slowed down, and several of the developments in the city were put on hold, traditional methods to showcase developments to Britons are no more successful.
The Managing Director of Properties Dubai, Asif Choudhary, agreed that they have stopped receiving any inquiries for properties, and hence planned a way out. Auctions are a great way for generating big business in the UK.
The Sales and Marketing Director at Hircon International, Manish Bhatia, said that for any property market to grow stronger it needs to be changed hands from someone who is financially weak to the one who is financially strong.
The off-plan properties were hardly generating sales, except for that of RAK Properties. With several developments in Dubai, being put on hold, British investors were questioning if certain projects, would ever get completed.
Although the bargaining element when buying at an auction is justified, keeping the current scenario in mind, those who listed Dubai Properties were not prepared to given them away.
According to Choudhary, there are two types of sellers in the market currently - those operating at a loss but remain financially stable, and also the overleveraged who would sell for less. But the latter is more than the former in the market.
Bhatia points out that making sales at this point does not indicate a market recovery, and emphasized that for this to happen, lending too, may have to ease.
For a recovery to happen, certain other developments will have to be considered. People may purchase at cheaper prices, but that may not be a sign of recovery. One may have to wait until the lending eases up, he said. Bhatia emphasized that the auction format is an effective strategy, and it would be good to carry out such a format in Dubai.
Choudhary agreed that the market for selling Dubai Properties to people in the UK is yet to recover, but auctions may help in maintaining interest at the movement.
Earlier several Dubai properties were being purchased by investors in the UK. However, with the Pound value plunging to record-lows, mortgages slowed down, and several of the developments in the city were put on hold, traditional methods to showcase developments to Britons are no more successful.
The Managing Director of Properties Dubai, Asif Choudhary, agreed that they have stopped receiving any inquiries for properties, and hence planned a way out. Auctions are a great way for generating big business in the UK.
The Sales and Marketing Director at Hircon International, Manish Bhatia, said that for any property market to grow stronger it needs to be changed hands from someone who is financially weak to the one who is financially strong.
The off-plan properties were hardly generating sales, except for that of RAK Properties. With several developments in Dubai, being put on hold, British investors were questioning if certain projects, would ever get completed.
Although the bargaining element when buying at an auction is justified, keeping the current scenario in mind, those who listed Dubai Properties were not prepared to given them away.
According to Choudhary, there are two types of sellers in the market currently - those operating at a loss but remain financially stable, and also the overleveraged who would sell for less. But the latter is more than the former in the market.
Bhatia points out that making sales at this point does not indicate a market recovery, and emphasized that for this to happen, lending too, may have to ease.
For a recovery to happen, certain other developments will have to be considered. People may purchase at cheaper prices, but that may not be a sign of recovery. One may have to wait until the lending eases up, he said. Bhatia emphasized that the auction format is an effective strategy, and it would be good to carry out such a format in Dubai.
Choudhary agreed that the market for selling Dubai Properties to people in the UK is yet to recover, but auctions may help in maintaining interest at the movement.
Labels: Dubai Real Estate, Latest News
Rising sea levels puts waterfront projects at high risk
Saturday, April 11, 2009
According to a United Nations Report, the rapid rise in sea levels is likely to put waterfront developments at risk.
The Assistant Secretary-General for Disaster Risk Reduction (UNISDR) at Geneva has stated that rising sea levels and water shortage are a cause of concern for the Middle East region.
Speaking on the occasion of Humanitarian Aid and Development Conference, the official stated that low-lying areas, threatened by the sea delta may head for a disaster due to rising sea levels, caused by change in climatic conditions. Expert engineering skills may help in keeping the infrastructure intact, as shifting the infrastructure would be a costly affair.
The first report on disaster risk reality in the MENA region by UNISDR is expected to be launched shortly. The report would focus on the impact of urbanization on climate, the environmental hazards and the eco-system in the region, particularly the Middle East, as it is highly prone to storms, droughts and water shortages.
Setting up a legal framework may help in leading a sustainable future. The Gulf region has plenty of wealth, resources and political determination, and hence the region can play a major role in sustaining its own natural resources, the report said.
The Assistant Secretary-General for Disaster Risk Reduction (UNISDR) at Geneva has stated that rising sea levels and water shortage are a cause of concern for the Middle East region.
Speaking on the occasion of Humanitarian Aid and Development Conference, the official stated that low-lying areas, threatened by the sea delta may head for a disaster due to rising sea levels, caused by change in climatic conditions. Expert engineering skills may help in keeping the infrastructure intact, as shifting the infrastructure would be a costly affair.
The first report on disaster risk reality in the MENA region by UNISDR is expected to be launched shortly. The report would focus on the impact of urbanization on climate, the environmental hazards and the eco-system in the region, particularly the Middle East, as it is highly prone to storms, droughts and water shortages.
Setting up a legal framework may help in leading a sustainable future. The Gulf region has plenty of wealth, resources and political determination, and hence the region can play a major role in sustaining its own natural resources, the report said.
Labels: Latest News, Middle-East, Water front
New regulation likely for termination of off-plan contracts in Dubai
Monday, April 06, 2009
The Dubai Land Department has amended the Article 11 of Law No.13 regulating the Interim Real Estate Register, and this will be released in 15 days time. Once, released the new regulation is hoped to introduce provision for cancellation of contracts, and is hoped to benefit the market.
The department had already issued an internal circular during November 2008, wherein the circular stated that in case of termination of an off-plan contract, the developer can retain 30 percent of the contract value (30 to 70 percent of the amount paid), and that this would be applicable to amounts exceeding 30 percent.
However, in case of termination of contract, the developer of the property will retain the amounts paid by the buyer, until the real estate is sold.
The Director-General of Dubai Land Department, Sultan Butti bin Mejren, has said that the revised article would establish new grades for properties and developers, and would be more than the 30-70 rule, currently applicable.
The Law No.13, Article 11, which is currently applicable states that a developer is required to keep the Land Department informed, if a buyer breaches a sales contract. Thereafter the department would notify the purchaser personally or by registered mail or email, giving him one month time to fulfill the contractual obligations. At the end of the term, the developer can cancel the contract and refund the sum paid by the buyer, after deducting an amount not more than 30 percent of the total value of the unit.
The department had already issued an internal circular during November 2008, wherein the circular stated that in case of termination of an off-plan contract, the developer can retain 30 percent of the contract value (30 to 70 percent of the amount paid), and that this would be applicable to amounts exceeding 30 percent.
However, in case of termination of contract, the developer of the property will retain the amounts paid by the buyer, until the real estate is sold.
The Director-General of Dubai Land Department, Sultan Butti bin Mejren, has said that the revised article would establish new grades for properties and developers, and would be more than the 30-70 rule, currently applicable.
The Law No.13, Article 11, which is currently applicable states that a developer is required to keep the Land Department informed, if a buyer breaches a sales contract. Thereafter the department would notify the purchaser personally or by registered mail or email, giving him one month time to fulfill the contractual obligations. At the end of the term, the developer can cancel the contract and refund the sum paid by the buyer, after deducting an amount not more than 30 percent of the total value of the unit.
Labels: Latest News, Property Law
Middle East property sector shows signs of recovery
Friday, March 27, 2009
According to a new report by Jones Lang LaSalle, the real estate market in the Middle East and North Africa are showing signs of recovery, although the prices in the region may continue to fall during the next six to twelve months.
The first quarter of 2009 has shown some progress in the sector, with green shoots of recovery beginning to crop-up. However, the necessary conditions for recovery are yet to be met, the report points out.
The major factor for recovery of the sector are improved sentiment which would boost confidence and reverse the credit default spiral, which has been widely experienced during the past six months.
According to the report, Dubai lays out vast options for opportunistic investors, given, the correction in prices happening in the emirate. Although the yields can be hoped to increase only in the medium term, the long-term outlook for Dubai continues to remain positive, particularly, with the decline in supply, as several projects are being put on hold or are scrapped off.
The "green shoots of recovery" in the regional property sector was noticed during the first quarter of the year, and the markets are hoped to be in the process of recovery as early as in the autumn, revealed a property consultancy, in its report.
The Jones Lang LaSalle report states that the Middle East and North Africa (MENA) economies have begun making progress on 12 out of 17 major requirements for the economic recovery, which includes re-capitalization of Banks, Reduction in future supply of homes, and "concerted government action".
However the economies may still have face serious challenges during the year. Even with so many positive factors noticed during the past three months, the region may still be in the recession stage, with several markets expected to witness downward correction in prices during the year, the Jones Lang LaSalle report states.
However, Abu Dhabi indicates chances of "significant long-term potential", while Dubai has opened up to "opportunistic investors" seeking medium-term and long-term investments. In the meantime, Qatar and Saudi Arabia would remain as the most lucrative markets during this period, the report suggests.
The company expects that following the transition phase, the region will be well-positioned to emerge stronger, with more transparent and better regulated sustainable pattern of real estate development and investment, meant for the longer term.
The first quarter of 2009 has shown some progress in the sector, with green shoots of recovery beginning to crop-up. However, the necessary conditions for recovery are yet to be met, the report points out.
The major factor for recovery of the sector are improved sentiment which would boost confidence and reverse the credit default spiral, which has been widely experienced during the past six months.
According to the report, Dubai lays out vast options for opportunistic investors, given, the correction in prices happening in the emirate. Although the yields can be hoped to increase only in the medium term, the long-term outlook for Dubai continues to remain positive, particularly, with the decline in supply, as several projects are being put on hold or are scrapped off.
The "green shoots of recovery" in the regional property sector was noticed during the first quarter of the year, and the markets are hoped to be in the process of recovery as early as in the autumn, revealed a property consultancy, in its report.
The Jones Lang LaSalle report states that the Middle East and North Africa (MENA) economies have begun making progress on 12 out of 17 major requirements for the economic recovery, which includes re-capitalization of Banks, Reduction in future supply of homes, and "concerted government action".
However the economies may still have face serious challenges during the year. Even with so many positive factors noticed during the past three months, the region may still be in the recession stage, with several markets expected to witness downward correction in prices during the year, the Jones Lang LaSalle report states.
However, Abu Dhabi indicates chances of "significant long-term potential", while Dubai has opened up to "opportunistic investors" seeking medium-term and long-term investments. In the meantime, Qatar and Saudi Arabia would remain as the most lucrative markets during this period, the report suggests.
The company expects that following the transition phase, the region will be well-positioned to emerge stronger, with more transparent and better regulated sustainable pattern of real estate development and investment, meant for the longer term.
Labels: Dubai Marina, Latest News, Middle-East
Few Dubai projects may physically disappear in 2009
Thursday, March 19, 2009
Few projects in Dubai will physically disappear in 2009, as the emirate witnesses a flight to quality among investors, predicted the industry experts early this week.
The Chief Operating Officer at Gulf Housing Solutions, Christopher Sims, say that developers did not do adequate market research, and did not bother about who they were building the projects for.
"Although this natural culling of the market is a good sign, few projects will physically disappear. Few were very far-reaching and extremely ambitious. Therefore, amateurs are leaving the market, and professionals remain," Sims said.
Prior to the onset of financial downturn in Dubai, speculators and investors were just looking for a piece of the Dubai property cake. But, now, they are only considering those projects that are complete and have good quality finishes and amenities.
"It is not a recession, but, a technical correction. The market will move to a flight to quality - The Springs, Jumeirah. People will not live in the middle of the desert, without infrastructure." Sims pointed out.
Nakheel, for instance, had to postpone few of its projects such as the Trump International Hotel and Tower, and a kilometer-tall tower, and developers across Dubai and over the globe, had to tighten their purse strings.
According to the Regional Director at Jones Lang LaSalle, Ian Ohan, in terms of defaults, the projects that have not yet begun works, are best to resolve. The off-plan sales were effectively used to finance projects, and off-plan purchasers are now defaulting, putting the developer in a difficult situation.
A recent report by Jones Lang LaSalle states that more than 50 percent of its commercial and residential projects, due to come online between 2009 and 2012 are either on hold, or have been completely scrapped off.
A survey carried out during the third quarter of 2008 in the Middle East and North Africa region reveal that the major issue was that the investors were mostly concerned about their level of returns. Only less than 2.5 percent expressed keenness in an exit plan, and this indicates the state of the market back at the peak, Ohan explained.
However, the year 2009 will continue to be a year of correction, and 2010 will be a year of stabilization, before the market recovers in 2011, said Jones Lang LaSalle.
The Chief Operating Officer at Gulf Housing Solutions, Christopher Sims, say that developers did not do adequate market research, and did not bother about who they were building the projects for.
"Although this natural culling of the market is a good sign, few projects will physically disappear. Few were very far-reaching and extremely ambitious. Therefore, amateurs are leaving the market, and professionals remain," Sims said.
Prior to the onset of financial downturn in Dubai, speculators and investors were just looking for a piece of the Dubai property cake. But, now, they are only considering those projects that are complete and have good quality finishes and amenities.
"It is not a recession, but, a technical correction. The market will move to a flight to quality - The Springs, Jumeirah. People will not live in the middle of the desert, without infrastructure." Sims pointed out.
Nakheel, for instance, had to postpone few of its projects such as the Trump International Hotel and Tower, and a kilometer-tall tower, and developers across Dubai and over the globe, had to tighten their purse strings.
According to the Regional Director at Jones Lang LaSalle, Ian Ohan, in terms of defaults, the projects that have not yet begun works, are best to resolve. The off-plan sales were effectively used to finance projects, and off-plan purchasers are now defaulting, putting the developer in a difficult situation.
A recent report by Jones Lang LaSalle states that more than 50 percent of its commercial and residential projects, due to come online between 2009 and 2012 are either on hold, or have been completely scrapped off.
A survey carried out during the third quarter of 2008 in the Middle East and North Africa region reveal that the major issue was that the investors were mostly concerned about their level of returns. Only less than 2.5 percent expressed keenness in an exit plan, and this indicates the state of the market back at the peak, Ohan explained.
However, the year 2009 will continue to be a year of correction, and 2010 will be a year of stabilization, before the market recovers in 2011, said Jones Lang LaSalle.
Labels: Latest News, Market Trends
Property hotspots in Dubai for 2009
Tuesday, March 17, 2009
A leading property portal in the UAE, propertyfinder .ae, today released its findings, which reveals the top locations in Dubai for rent and purchase during the current year.
According to the findings, both buyers and renters are moving out of traditional residential hubs to areas such as the Jumeirah Lake Towers, The Springs and Discovery Gardens, with new communities high on priority list for both buyers and renters.
The findings were based on approximately 500,000 unique page visits to the website during the month of Feb'09. This highlights the current activity in the Dubai real estate market, despite the slowdown.
The Head of Marketing at propertyfinder.ae, Marcello Sambartolo, when speaking about the survey results, mentioned that the survey brought out some interesting statistics, wherein a real transition in rental interest towards new residential areas such as Jumeirah Lake Towers and Discovery Gardens have been observed, where the rents are more competitive. The data also reveals that end-users are still looking to invest in Dubai properties, which is now offering opportunities to capitalize on the recent drop in housing prices.
This is the right opportunity to locate good property investments. The research would help in locating the best deals and being aware about the new communities coming on stream, Sambartolo said.
The survey is generated out of user-generated figures on the property portal from 1st to the 28th February 2009. The figures are based on 644,148 page views and 492,838 unique page views on the website. The figures have been verified by Market Intelligence, Nielsen Site Census and Google Analytics.
The hot zones as revealed by the website are as follows:
According to the findings, both buyers and renters are moving out of traditional residential hubs to areas such as the Jumeirah Lake Towers, The Springs and Discovery Gardens, with new communities high on priority list for both buyers and renters.
The findings were based on approximately 500,000 unique page visits to the website during the month of Feb'09. This highlights the current activity in the Dubai real estate market, despite the slowdown.
The Head of Marketing at propertyfinder.ae, Marcello Sambartolo, when speaking about the survey results, mentioned that the survey brought out some interesting statistics, wherein a real transition in rental interest towards new residential areas such as Jumeirah Lake Towers and Discovery Gardens have been observed, where the rents are more competitive. The data also reveals that end-users are still looking to invest in Dubai properties, which is now offering opportunities to capitalize on the recent drop in housing prices.
This is the right opportunity to locate good property investments. The research would help in locating the best deals and being aware about the new communities coming on stream, Sambartolo said.
The survey is generated out of user-generated figures on the property portal from 1st to the 28th February 2009. The figures are based on 644,148 page views and 492,838 unique page views on the website. The figures have been verified by Market Intelligence, Nielsen Site Census and Google Analytics.
The hot zones as revealed by the website are as follows:
Labels: Dubai Real Estate, Latest News, Market Trends
Funds on way to help Dubai companies; property firms on priority list
Saturday, March 14, 2009
The companies in Dubai can expect funds within two weeks time, out of the US$10bn (Dh.36.73bn) which the Dubai Government borrowed from the Central Bank, to help ease the cash squeeze situation in the emirate.
This was revealed by Nasser al Shaikh, the Head of Dubai Finance Department, when speaking during a conference today. The funds, which form a part of the $20bn bond programme introduced last month to help Dubai in meeting the short-term requirements for funding, helped calm down investors, who were worried that the companies may face hurdles repaying debts this year, as the banks were reluctant to refinance loans due to the global credit crunch.
The emirate is yet to decide on how to administer the funds on a case-by-case basis, although Al Shaikh confirmed that the property sector companies would be given special priority. The Economist at Standard Chartered, Shady Shaher, said that although firms outside property sector too, would be eligible for funds, he expects majority of the money to flow into property companies, particularly, those that are partially-owned by Dubai Government.
Several large Dubai-based groups have already applied for funds. Al Shaikh said that the cash flow to the companies, affected by global crunch, would be given based on their requirements.
The Dubai Government is believed to set up a special fund through the Department of Economic Development, to lend a portion of the $10bn to small and medium-sized companies that require cash.
Speaking about the real estate market in Dubai, Al Shaikh said that the finance department would keep bringing out measures to stimulate the sector. The focus in the present situation should be on settling the disputes between buyers and sellers, he pointed out.
As for the current talks between Tamweel and Amlak, the two largest mortgage companies of UAE, Al Shaikh, who is also the Chairman of Amlak, said that the management of both companies were holding discussions about the same with the Ministerial Committee. Although it was thought that the companies were planning a merger, the statement from government officials earlier this week, ruled out the possibility and suggested other options.
However, al Shaikh said that more companies are also planning consolidation, amidst slowdown, although a potential consolidation should make sense to shareholders and to the economy at large.
Al Shaikh also did not deny the likelihood for consolidation between companies in Dubai and Abu Dhabi, either.
This was revealed by Nasser al Shaikh, the Head of Dubai Finance Department, when speaking during a conference today. The funds, which form a part of the $20bn bond programme introduced last month to help Dubai in meeting the short-term requirements for funding, helped calm down investors, who were worried that the companies may face hurdles repaying debts this year, as the banks were reluctant to refinance loans due to the global credit crunch.
The emirate is yet to decide on how to administer the funds on a case-by-case basis, although Al Shaikh confirmed that the property sector companies would be given special priority. The Economist at Standard Chartered, Shady Shaher, said that although firms outside property sector too, would be eligible for funds, he expects majority of the money to flow into property companies, particularly, those that are partially-owned by Dubai Government.
Several large Dubai-based groups have already applied for funds. Al Shaikh said that the cash flow to the companies, affected by global crunch, would be given based on their requirements.
The Dubai Government is believed to set up a special fund through the Department of Economic Development, to lend a portion of the $10bn to small and medium-sized companies that require cash.
Speaking about the real estate market in Dubai, Al Shaikh said that the finance department would keep bringing out measures to stimulate the sector. The focus in the present situation should be on settling the disputes between buyers and sellers, he pointed out.
As for the current talks between Tamweel and Amlak, the two largest mortgage companies of UAE, Al Shaikh, who is also the Chairman of Amlak, said that the management of both companies were holding discussions about the same with the Ministerial Committee. Although it was thought that the companies were planning a merger, the statement from government officials earlier this week, ruled out the possibility and suggested other options.
However, al Shaikh said that more companies are also planning consolidation, amidst slowdown, although a potential consolidation should make sense to shareholders and to the economy at large.
Al Shaikh also did not deny the likelihood for consolidation between companies in Dubai and Abu Dhabi, either.
Labels: Dubai Real Estate, Latest News
RERA launches new initiative to safeguard investors
Monday, March 02, 2009
Henceforth, property investors can get complete details about the work progress of their new homes, or details about whether the work has been cancelled or delayed, based on an initiative designed to protect investors.
The Independent Progress Monitoring Report (IPMR) is an online scheme announced by RERA, which will see Government Engineers touring the housing construction sites in Dubai to check the progress being made.
A report will be published with photographic evidence and details about the progress of building work, with details of various stages reached. The monthly updates of the work will be available from next week on the website www.rpdubai.com.
The property sector lacks confidence currently, with the investors being worried that the projects are either cancelled or postponed, which has prompted RERA to take this initiative, agreed the Chief Executive of RERA, Marwan bin Ghalita.
The IPMR will keep a watch over only the projects with Escrow Accounts, which constitutes a total of 695 out of 875 projects registered with RERA. RERA, together with few other agencies will control the supply of new units entering the market by restricting building permits and developers.
During its launch in 2006, RERA had 875 developers on its books. The numbers of developers have reduced to 427. Property developers have reported that anywhere from 1 percent to 80 percent of buyers are defaulting on their payments, based on the building and construction progress and confidence in the developer.
According to Bin Ghalita, the housing projects in Dubai can be broadly categorized as those that are likely to be cancelled, those to be rescheduled, those to be merged, and those that would be completed in two years time. The new developers will have to adhere to the tougher guidelines and prevent the market from getting overheated in future.
The new guidelines by RERA depicts that no project will be able to commence sales unless the land occupied by the project is fully owned by the developer, with at least 20 percent of finances required to build it has been secured.
After attaining those standards, developers will be able to collect not more than 30 percent of the purchase price before beginning the construction, following which the payment plans will have to be connected with construction milestones.
According to Blair Hagkull, the Managing Director of the Regional Office of Jones Lang LaSalle, RERA's announcement represents a major change for Dubai property sector.
The Independent Progress Monitoring Report (IPMR) is an online scheme announced by RERA, which will see Government Engineers touring the housing construction sites in Dubai to check the progress being made.
A report will be published with photographic evidence and details about the progress of building work, with details of various stages reached. The monthly updates of the work will be available from next week on the website www.rpdubai.com.
The property sector lacks confidence currently, with the investors being worried that the projects are either cancelled or postponed, which has prompted RERA to take this initiative, agreed the Chief Executive of RERA, Marwan bin Ghalita.
The IPMR will keep a watch over only the projects with Escrow Accounts, which constitutes a total of 695 out of 875 projects registered with RERA. RERA, together with few other agencies will control the supply of new units entering the market by restricting building permits and developers.
During its launch in 2006, RERA had 875 developers on its books. The numbers of developers have reduced to 427. Property developers have reported that anywhere from 1 percent to 80 percent of buyers are defaulting on their payments, based on the building and construction progress and confidence in the developer.
According to Bin Ghalita, the housing projects in Dubai can be broadly categorized as those that are likely to be cancelled, those to be rescheduled, those to be merged, and those that would be completed in two years time. The new developers will have to adhere to the tougher guidelines and prevent the market from getting overheated in future.
The new guidelines by RERA depicts that no project will be able to commence sales unless the land occupied by the project is fully owned by the developer, with at least 20 percent of finances required to build it has been secured.
After attaining those standards, developers will be able to collect not more than 30 percent of the purchase price before beginning the construction, following which the payment plans will have to be connected with construction milestones.
According to Blair Hagkull, the Managing Director of the Regional Office of Jones Lang LaSalle, RERA's announcement represents a major change for Dubai property sector.
Labels: Latest News, Property Law
Food City worth $200mn underway in Dubai
Thursday, February 26, 2009
A five million square foot self-contained development, worth Dh.734mn ($200mn), namely the "Food City", is underway in Dubai, revealed industry sources yesterday.
The development, with a capability of accommodating 400 to 500 companies, is aimed at wholesale food merchants, said Farouk Qasim, Head of Food and Beverage group, Dubai Chamber of Commerce and Industry (DCCI).
According to Qasim, things would be easier if everything is under one roof, such as inspections for customs, or warehousing. Therefore it would be a one-stop shop.
Although the estimated value of the project is currently worth $200mn, this figure may vary depending on the construction costs.
The City is likely to be located close to a seaport, as majority of exports go by sea. Dubai Food City will increase food security in the UAE, which already imports 90 percent of its food. The project, which is currently in planning stages, will be carried out in four phases, with one complete phase hoped to be completed by 2012.
Dubai already houses the Dubai International Finance Centre, Media City, Internet City, Healthcare City, Knowledge Village, Humanitarian City, among others.
The development, with a capability of accommodating 400 to 500 companies, is aimed at wholesale food merchants, said Farouk Qasim, Head of Food and Beverage group, Dubai Chamber of Commerce and Industry (DCCI).
According to Qasim, things would be easier if everything is under one roof, such as inspections for customs, or warehousing. Therefore it would be a one-stop shop.
Although the estimated value of the project is currently worth $200mn, this figure may vary depending on the construction costs.
The City is likely to be located close to a seaport, as majority of exports go by sea. Dubai Food City will increase food security in the UAE, which already imports 90 percent of its food. The project, which is currently in planning stages, will be carried out in four phases, with one complete phase hoped to be completed by 2012.
Dubai already houses the Dubai International Finance Centre, Media City, Internet City, Healthcare City, Knowledge Village, Humanitarian City, among others.
Labels: Latest News, New Developments
UAE construction sector outlook for 2009 appears bleak
Saturday, February 21, 2009
The UAE real estate sector is expected to offer minimal construction opportunities in 2009, according to the 'Gulf Construction Outlook Survey' conducted by Meed, the leading business intelligence provider in Middle East.
The closed-door survey was carried out on the first day of Arabian World Construction Summit 2009 (AWCS 2009) held between the 9th and 11the February 2009 in Abu Dhabi. The survey focused on four major categories, which included market outlook, client-contractor relation, construction costs and construction management.
The survey respondents included senior representatives or CEOs of major construction companies in the GCC.
The Meed Editor, Richard Thompson, said that the survey measured the current market sentiments, and hoped that the survey results would form an effective resource of information for charting a roadmap for the industry.
The Construction Outlook Survey indicates that 96 percent of respondents hoped to see an increase in distress between clients and contractors in construction sector within GCC during the year. Also, two-thirds of the companies said that they intend to shift their focus towards Abu Dhabi, Qatar and Saudi Arabia this year.
AWCS 2009 was one of Meed's most prominent events, which brought together all industry pioneers from 169 companies of 25 countries.
The Director of Arabian World Construction Summit, Anca Westley, said despite the challenging economic climate, the 2009 summit reflects the region's ambition to maintain its status as world leader in construction sector. Saudi Arabia has emerged as the single strongest market in the region, with the government-supported infrastructure in place to offer the best opportunities this year.
"Meed will continue to work closely with the industry to offer regular updates about what could be the most challenging year in the construction sector," he added.
The closed-door survey was carried out on the first day of Arabian World Construction Summit 2009 (AWCS 2009) held between the 9th and 11the February 2009 in Abu Dhabi. The survey focused on four major categories, which included market outlook, client-contractor relation, construction costs and construction management.
The survey respondents included senior representatives or CEOs of major construction companies in the GCC.
The Meed Editor, Richard Thompson, said that the survey measured the current market sentiments, and hoped that the survey results would form an effective resource of information for charting a roadmap for the industry.
The Construction Outlook Survey indicates that 96 percent of respondents hoped to see an increase in distress between clients and contractors in construction sector within GCC during the year. Also, two-thirds of the companies said that they intend to shift their focus towards Abu Dhabi, Qatar and Saudi Arabia this year.
AWCS 2009 was one of Meed's most prominent events, which brought together all industry pioneers from 169 companies of 25 countries.
The Director of Arabian World Construction Summit, Anca Westley, said despite the challenging economic climate, the 2009 summit reflects the region's ambition to maintain its status as world leader in construction sector. Saudi Arabia has emerged as the single strongest market in the region, with the government-supported infrastructure in place to offer the best opportunities this year.
"Meed will continue to work closely with the industry to offer regular updates about what could be the most challenging year in the construction sector," he added.
Labels: Latest News, Market Trends, UAE
Residency Visa for freehold property owners to be introduced soon
Thursday, February 19, 2009
A senior government official has revealed that a federal regulation capable of granting residency visas to freehold property owners will be introduced within a year.
The proposal permits the owners to obtain a six-month renewable residency visa, irrespective of their nationality, size or value of the property. The proposal has been much appreciated by property developers.
The Acting Director General of the Federal Department of Naturalization and Residency (DNR), Brig. Gen. Nasser al Minhali, said that the project aims to create a unified visa system pertaining to home purchases.
Brig. Minhali termed the proposal as a "Security organizational procedure". The proposal will prevent each emirate from developing procedures of its own, thereby, unifying it under the Ministry of Interior, he added. The Residency Visas that have been granted so far will continue to remain valid, but, it would not be possible to renew them until the federal regulation is implemented.
Brig. Minhali did not reveal further details, as the proposal is being studied. Several emirates, including Dubai, follow the norm, wherein prospective homeowners seek residency through property developers, with the latter acting as sponsors for visas.
The three-year visa, which permits the holder to live in the emirate, but does not permit to work, serves as a major incentive for several buyers, particularly from Pakistan, Iran and India.
However, confusion prevailed, as people were unsure if developers could actually guarantee these visas, as promised, and if so, whether DNR would issue them. Sources within the industry, however, mentioned that a unified nationwide system was vital in this aspect, to ease confusion over which emirate had which entitlement. This would also help in restoring confidence in the market, it is believed.
A prominent Indian Industrialist, Surjit Singh, said that the unified property regulation could help in reducing property price discrepancies across the emirates. Such an initiative indicates the concern by the Ruler towards the interests of expatriate community.
The proposal permits the owners to obtain a six-month renewable residency visa, irrespective of their nationality, size or value of the property. The proposal has been much appreciated by property developers.
The Acting Director General of the Federal Department of Naturalization and Residency (DNR), Brig. Gen. Nasser al Minhali, said that the project aims to create a unified visa system pertaining to home purchases.
Brig. Minhali termed the proposal as a "Security organizational procedure". The proposal will prevent each emirate from developing procedures of its own, thereby, unifying it under the Ministry of Interior, he added. The Residency Visas that have been granted so far will continue to remain valid, but, it would not be possible to renew them until the federal regulation is implemented.
Brig. Minhali did not reveal further details, as the proposal is being studied. Several emirates, including Dubai, follow the norm, wherein prospective homeowners seek residency through property developers, with the latter acting as sponsors for visas.
The three-year visa, which permits the holder to live in the emirate, but does not permit to work, serves as a major incentive for several buyers, particularly from Pakistan, Iran and India.
However, confusion prevailed, as people were unsure if developers could actually guarantee these visas, as promised, and if so, whether DNR would issue them. Sources within the industry, however, mentioned that a unified nationwide system was vital in this aspect, to ease confusion over which emirate had which entitlement. This would also help in restoring confidence in the market, it is believed.
A prominent Indian Industrialist, Surjit Singh, said that the unified property regulation could help in reducing property price discrepancies across the emirates. Such an initiative indicates the concern by the Ruler towards the interests of expatriate community.
Labels: Latest News, Property Law
Nakheel's Marina Residences to be delivered in two months
Thursday, February 12, 2009
Nakheel, the master developer in Dubai, said that the exclusive Marina Residences development on the Palm Jumeirah is more than 90 percent complete, and that the 900 homes of the development would be delivered in April 2009.
The Marina Residences are stunning residential complexes, located at the tip of the trunk on the Palm Jumeirah, the largest man-made island in the world.
The high-rise development includes six residential towers, resting on landscaped podiums, overlooking the marinas. The towers include 940 apartments and penthouses, and another 40 units are located on a marina fronted promenade, which form the townhouses.
One of the largest marinas in Dubai, Anchor Marina, is located just beside the Marina Residence tower, which berths more than 500 vessles.
The work on the development has made swift progress ever-since the groundwork began on the six towers.
The Managing Director of Palm Jumeirah, Johann Schumacher, said that Nakheel would handover the villas within next 24 months, while the 900 homes would be handed over this year, with the new residents hoped to enter Palm Jumeirah in April.
The strategic location of the iconic development, would enable the residents to enjoy the abundant tourism and leisure amenities that are on the offer, while also benefiting from being in proximity to one of the largest marinas in Dubai, Schumacher pointed out.
Nakheel has already begun delivering homes at its Jumeirah Villas, with more than 2000 villa sand townhouses to be delivered by the end of the year.
About 24 ultra-luxury villas at the Jumeirah Island Mansions are due for delivery this spring, which would be a welcome addition to this already vibrant community, which is one of the most sought residential locations in Dubai.
The Jumeirah Park is also ready for hand-over, later this year. About 90 percent infrastructure works are completed across the development, and villa constructions are 30 percent finalized.
The Marina Residences are stunning residential complexes, located at the tip of the trunk on the Palm Jumeirah, the largest man-made island in the world.
The high-rise development includes six residential towers, resting on landscaped podiums, overlooking the marinas. The towers include 940 apartments and penthouses, and another 40 units are located on a marina fronted promenade, which form the townhouses.
One of the largest marinas in Dubai, Anchor Marina, is located just beside the Marina Residence tower, which berths more than 500 vessles.
The work on the development has made swift progress ever-since the groundwork began on the six towers.
The Managing Director of Palm Jumeirah, Johann Schumacher, said that Nakheel would handover the villas within next 24 months, while the 900 homes would be handed over this year, with the new residents hoped to enter Palm Jumeirah in April.
The strategic location of the iconic development, would enable the residents to enjoy the abundant tourism and leisure amenities that are on the offer, while also benefiting from being in proximity to one of the largest marinas in Dubai, Schumacher pointed out.
Nakheel has already begun delivering homes at its Jumeirah Villas, with more than 2000 villa sand townhouses to be delivered by the end of the year.
About 24 ultra-luxury villas at the Jumeirah Island Mansions are due for delivery this spring, which would be a welcome addition to this already vibrant community, which is one of the most sought residential locations in Dubai.
The Jumeirah Park is also ready for hand-over, later this year. About 90 percent infrastructure works are completed across the development, and villa constructions are 30 percent finalized.
Labels: Latest News, Nakheel, Palm Jumeirah
Dubai economy forecasts 2.9% growth this year
Monday, February 09, 2009
Dubai's economy is bound to grow 2.5% this year, despite the global slow down, declared a senior official at the Dubai Government, yesterday.
The Chief Economist of Dubai Government, Raed Safadi, said that a 2.5% growth is likely in Dubai in 2009, although it is quite less when compared to the 8% growth in 2008.
Dubai has had to revise the forecast downward, since October, as it is known that none of the emirates are immune to global financial turmoil. Dubai continues to focus on retention of human capital, with the emirate issuing nearly 1000 visas per day in January.
Safadi said that Dubai's economy used leverage to improve its production and infrastructure capacity, and added that while enjoying six years of current surplus, Dubai was also ready for the worst, when it was growing.
"We are being challenged on exports, and also in the real estate sector, construction and of-course, tourism. All these sectors are under pressure here," Safadi continued.
During 2007, the Dubai Government aimed to grow 11 percent each year, until 2015. This target was reduced to 4-6 percent, this year. Standard Chartered further reduced the growth forecast of UAE to 0.5% last month.
The Director of IMF-Middle East and Central Asia, Masood Ahmed, however, mentioned that GCC can expect an economic growth of 3.6 percent this year, from the 6.3% growth last year. Although, he did not mention individual figures for UAE or Dubai, he said that for the oil exporters, the drop in oil prices and Opec production cuts will reduces oil exports by nearly 50% in 2009, thereby leading to loss of government revenue worth Dh.1.1trillion.
However, increased government spending may help to strengthen the Gulf economies, Ahmed pointed out.
The IMF has revised its forecasts several times during the past six months. This is because, no crisis in history has been so severe, and the economic models for forecasts have not worked well, Ahmed said.
The Chief Economist of Dubai Government, Raed Safadi, said that a 2.5% growth is likely in Dubai in 2009, although it is quite less when compared to the 8% growth in 2008.
Dubai has had to revise the forecast downward, since October, as it is known that none of the emirates are immune to global financial turmoil. Dubai continues to focus on retention of human capital, with the emirate issuing nearly 1000 visas per day in January.
Safadi said that Dubai's economy used leverage to improve its production and infrastructure capacity, and added that while enjoying six years of current surplus, Dubai was also ready for the worst, when it was growing.
"We are being challenged on exports, and also in the real estate sector, construction and of-course, tourism. All these sectors are under pressure here," Safadi continued.
During 2007, the Dubai Government aimed to grow 11 percent each year, until 2015. This target was reduced to 4-6 percent, this year. Standard Chartered further reduced the growth forecast of UAE to 0.5% last month.
The Director of IMF-Middle East and Central Asia, Masood Ahmed, however, mentioned that GCC can expect an economic growth of 3.6 percent this year, from the 6.3% growth last year. Although, he did not mention individual figures for UAE or Dubai, he said that for the oil exporters, the drop in oil prices and Opec production cuts will reduces oil exports by nearly 50% in 2009, thereby leading to loss of government revenue worth Dh.1.1trillion.
However, increased government spending may help to strengthen the Gulf economies, Ahmed pointed out.
The IMF has revised its forecasts several times during the past six months. This is because, no crisis in history has been so severe, and the economic models for forecasts have not worked well, Ahmed said.
Labels: Dubai City, Latest News
Nakheel delays sale of Al Furjan units
Thursday, February 05, 2009
The sale of homes at Al Furjan, the community development in Dubai, will be delayed, until a rebound in demand for properties is seen, announced Nakheel, the master-developer of the community.
However, the 2000 homes that have already been sold during the sale of the first phase, are all progressing with construction works as scheduled, and will be complete towards end of next year.
The General Manager of the project, Mohammed Rashed, said that, the company is on track about the schedule for the first 2000 villas. However, for the other villas, the market condition needs to be evaluated first, and when the opportunity arises, more projects would be launched.
Rashed added that this move by Nakheel, was initiated as a part of its short-term plans to deliver efficiently what has already been committed to the customers.
Spreading across a 5.4million square meter space, behind the Discovery Gardens, in proximity to Jebel Ali Village, the Al Furjan community was planned to include 4000 villas and townhouses, schools, medical and retail amenities.
Nakheel is working with Gulf Lender Network, a mortgage company, to secure finance for customers who have already signed up for the Al Furjan units, Rashed revealed.
Nakheel has already back-tracked construction and reclamation work on its man-made island projects, and has delayed the construction of Nakheel Harbour and Tower, the one-kilometer tall structure, destined to be one of the tallest towers in the world.
However, the company is now focusing on its housing projects including the Jumeirah Islands, Jumeirah Park, and Jumeirah Village. Nearly 2200 units at Jumeirah Village and 900 units at Jumeirah Park will be delivered to residents by the end of the year.
In the meanwhile, Nakheel which has downsized its staff strength is also restructuring its senior management teams.
However, the 2000 homes that have already been sold during the sale of the first phase, are all progressing with construction works as scheduled, and will be complete towards end of next year.
The General Manager of the project, Mohammed Rashed, said that, the company is on track about the schedule for the first 2000 villas. However, for the other villas, the market condition needs to be evaluated first, and when the opportunity arises, more projects would be launched.
Rashed added that this move by Nakheel, was initiated as a part of its short-term plans to deliver efficiently what has already been committed to the customers.
Spreading across a 5.4million square meter space, behind the Discovery Gardens, in proximity to Jebel Ali Village, the Al Furjan community was planned to include 4000 villas and townhouses, schools, medical and retail amenities.
Nakheel is working with Gulf Lender Network, a mortgage company, to secure finance for customers who have already signed up for the Al Furjan units, Rashed revealed.
Nakheel has already back-tracked construction and reclamation work on its man-made island projects, and has delayed the construction of Nakheel Harbour and Tower, the one-kilometer tall structure, destined to be one of the tallest towers in the world.
However, the company is now focusing on its housing projects including the Jumeirah Islands, Jumeirah Park, and Jumeirah Village. Nearly 2200 units at Jumeirah Village and 900 units at Jumeirah Park will be delivered to residents by the end of the year.
In the meanwhile, Nakheel which has downsized its staff strength is also restructuring its senior management teams.
Labels: Latest News, Nakheel
$75bn worth real estate projects cancelled in Dubai: HSBC
Monday, February 02, 2009
Almost 60 percent of real estate projects in Dubai, worth a total of $75bn are being either delayed or cancelled, with the booming construction sector of the emirate being hit by the global economic crisis, states a new report by HSBC.
Several projects that were in advanced stages of completion, were also being scrapped off completely, the Bank said, in its note on Arabic Holding, one of the largest construction firms in Dubai.
According to the bank, majority of the delayed or cancelled projects are high-end residential and commercial developments. The once-booming property market in Dubai has been hit hard due to drop in sales and stringent financing, and the developers are being compelled to re-look their project requirements.
The HSBC report lists out 59 projects that are under review currently, including the eight projects that have been completely scrapped off. Among the cancelled projects, two projects belong to Damac Properties, the largest private developers in the region.
Nakheel, the Government-owned developer too, has put on hold six of its major projects, including the Palm Deira project, the one kilometer tall Nakheel Harbour and Tower, and the $790mn Trump Tower.
Limitless, another government-supported developer had announced that it was reviewing the pace of $61bn Canal development. This was followed by Meraas, another government-backed developer reviewing its $95bn re-development programme in the heart of Dubai.
According to the HSBC report, several projects at the $110bn Dubailand development, destined to be the height of tourism in the emirate, have been cancelled, which also includes the Falcon City of Wonders, which was to include a replica of Eiffel Tower, Taj Mahal and the Tower of Pisa and other wonders of the world.
Several projects that were in advanced stages of completion, were also being scrapped off completely, the Bank said, in its note on Arabic Holding, one of the largest construction firms in Dubai.
According to the bank, majority of the delayed or cancelled projects are high-end residential and commercial developments. The once-booming property market in Dubai has been hit hard due to drop in sales and stringent financing, and the developers are being compelled to re-look their project requirements.
The HSBC report lists out 59 projects that are under review currently, including the eight projects that have been completely scrapped off. Among the cancelled projects, two projects belong to Damac Properties, the largest private developers in the region.
Nakheel, the Government-owned developer too, has put on hold six of its major projects, including the Palm Deira project, the one kilometer tall Nakheel Harbour and Tower, and the $790mn Trump Tower.
Limitless, another government-supported developer had announced that it was reviewing the pace of $61bn Canal development. This was followed by Meraas, another government-backed developer reviewing its $95bn re-development programme in the heart of Dubai.
According to the HSBC report, several projects at the $110bn Dubailand development, destined to be the height of tourism in the emirate, have been cancelled, which also includes the Falcon City of Wonders, which was to include a replica of Eiffel Tower, Taj Mahal and the Tower of Pisa and other wonders of the world.
Labels: Latest News, Real Estate Projects
Dubai property prices slump 23%: HSBC
Saturday, January 24, 2009
According to a new report by HSBC, property prices in Dubai have dropped 23% last month. For the first time, the survey measured the actual prices at which properties were purchased and sold.
The HSBC report for the last quarter of 2008 showed a 23% decline in property prices in Dubai, with villas showing considerable decrease in prices than apartments.
The once-booming property sector of the emirate has slowed down, owing to global economic turmoil, with the plunging prices and developers scaling back on their projects, and rising job layoffs.
Average prices for villas fell by 30 percent from their peak in September, but went up 33% year-on-year, while prices for apartments dropped 20% from last September, but grew 16% year-on-year.
The figures for December 2008 also indicate a drop of 23% from the peak in September 2008.
Transaction volumes fell from November 2008, but maintained healthy levels. The advertised rentals however, continued to increase 9% month-on-month, but HSBC expects rents to soften further with more units being converted from sale to lease.
The prices of properties in Dubai could drop by as much as 60% this year, from their peaks last year, Shuaa Capital predicts.
The latest report by Asteco, however, confirms that rental rates for villas and apartments have been levelling off throughout 2008 with an average growth rate of 4% for apartments and 8% for villas.
The HSBC report for the last quarter of 2008 showed a 23% decline in property prices in Dubai, with villas showing considerable decrease in prices than apartments.
The once-booming property sector of the emirate has slowed down, owing to global economic turmoil, with the plunging prices and developers scaling back on their projects, and rising job layoffs.
Average prices for villas fell by 30 percent from their peak in September, but went up 33% year-on-year, while prices for apartments dropped 20% from last September, but grew 16% year-on-year.
The figures for December 2008 also indicate a drop of 23% from the peak in September 2008.
Transaction volumes fell from November 2008, but maintained healthy levels. The advertised rentals however, continued to increase 9% month-on-month, but HSBC expects rents to soften further with more units being converted from sale to lease.
The prices of properties in Dubai could drop by as much as 60% this year, from their peaks last year, Shuaa Capital predicts.
The latest report by Asteco, however, confirms that rental rates for villas and apartments have been levelling off throughout 2008 with an average growth rate of 4% for apartments and 8% for villas.
Labels: Dubai Real Estate, Latest News, Property Prices
RERA announces Rental Index for Residential Properties
Thursday, January 22, 2009
The Real Estate Regulatory Authority (RERA) in Dubai has announced its rental index for residential properties, classified on the basis of various categories. Last week, the agency released the commercial property index.
The posting on RERA's website lists the residential index, which focuses on the apartment and villa rents in three main areas - Deira, Bur Dubai and freehold. This is further segregated into individual localities and home sizes.
According to analysts, the rental index lists values that are far higher than the prevailing market values. The index was compiled based on the market situation of 2008, when the rental rates were at their peak in Dubai. The agency may therefore have to re-look the index values soon, keeping in mind the current situation, following the impact of global economic recession on the GCC economies, one analyst pointed out.
However, RERA has highlighted the fact that the index should be used only for reference and is not any sort of legal obligation.
But, the analysts feel that landlords would utilize the index in their favour, as a justification to increase rents, irrespective of market conditions.
The decree issued by Dubai's Ruler on Monday, has further clarified that new rental contracts (both residential and commercial) signed last year, should not be increased, based on certain conditions. The decree states that rental contracts could be increased in steps up to a maximum of 20 percent.
Rental Values of Freehold Property (Dhs '000)
The posting on RERA's website lists the residential index, which focuses on the apartment and villa rents in three main areas - Deira, Bur Dubai and freehold. This is further segregated into individual localities and home sizes.
According to analysts, the rental index lists values that are far higher than the prevailing market values. The index was compiled based on the market situation of 2008, when the rental rates were at their peak in Dubai. The agency may therefore have to re-look the index values soon, keeping in mind the current situation, following the impact of global economic recession on the GCC economies, one analyst pointed out.
However, RERA has highlighted the fact that the index should be used only for reference and is not any sort of legal obligation.
But, the analysts feel that landlords would utilize the index in their favour, as a justification to increase rents, irrespective of market conditions.
The decree issued by Dubai's Ruler on Monday, has further clarified that new rental contracts (both residential and commercial) signed last year, should not be increased, based on certain conditions. The decree states that rental contracts could be increased in steps up to a maximum of 20 percent.
Rental Values of Residential Apartments (Dhs '000)
Rental Values of Residential Villas (Dhs '000)
Rental Values of Freehold Property (Dhs '000)
[Source : RERA]
Labels: Latest News, Rentals
UAE may introduce unified freehold visa regulation
Tuesday, January 13, 2009
The Federal Government in UAE is considering the issue of freehold property visas pertaining to foreign ownership of properties in various emirates, revealed a top government official in Dubai on Saturday.
The Director-General of Dubai Government's Department of Finance, when speaking to the media during the sidelines of government's 2009 budget announcement, said that the Advisory Council of Dubai Government has put forward a proposal to the Federal Government regarding issue of property-linked visas for a review.
Several emirates have developed their own freehold visa arrangements, and streamlining the process is being planned at the federal level, to announce a unified guideline for all the emirates.
A new law may be announced soon, he said, although did not mention by when the regulation would be passed.
The issue of freehold visa was on focus when big developers such as Emaar and Nakheel, who were earlier helping foreign buyers to get three-year renewable residence visas on purchase of freehold properties, suddenly stopped facilitating them.
The unified guideline regulation is welcomed by experts in the country, as they streamlined the procedure to keep up confidence of the investors.
The Advisory Council was established by the Dubai Government last year, to judge the impact of global financial crisis on Dubai's economy.
Sudhir Kumar, the Managing Director of Realtor's International, a property consultancy said that the issue of freehold visas has been a major concern for property investors, and the government has shown its strength and resilience at this time of crisis by addressing this issue.
Since the year 2002, master-developers in Dubai have been pledging the freehold visas to attract foreign investment to real estate sector in the emirate. This has also drawn plenty of foreign investment into the sector.
This promise was facilitated to buyers in co-operation with Dubai Naturalization and Residency Department, and master developers in RAK and Ajman have followed suit, by attracting major investments into the property sector.
Among the seven emirates in UAE, five have certain designated areas for foreign nationals to buy and own properties on a freehold and leasehold basis. Sharjah, however, does not permit foreign nationals to own properties on freehold basis.
According to UAE constitution, the land in each emirate belongs to the Rulers, and they take decisions pertaining to ownership, usage or allocation of land.
The Director-General of Dubai Government's Department of Finance, when speaking to the media during the sidelines of government's 2009 budget announcement, said that the Advisory Council of Dubai Government has put forward a proposal to the Federal Government regarding issue of property-linked visas for a review.
Several emirates have developed their own freehold visa arrangements, and streamlining the process is being planned at the federal level, to announce a unified guideline for all the emirates.
A new law may be announced soon, he said, although did not mention by when the regulation would be passed.
The issue of freehold visa was on focus when big developers such as Emaar and Nakheel, who were earlier helping foreign buyers to get three-year renewable residence visas on purchase of freehold properties, suddenly stopped facilitating them.
The unified guideline regulation is welcomed by experts in the country, as they streamlined the procedure to keep up confidence of the investors.
The Advisory Council was established by the Dubai Government last year, to judge the impact of global financial crisis on Dubai's economy.
Sudhir Kumar, the Managing Director of Realtor's International, a property consultancy said that the issue of freehold visas has been a major concern for property investors, and the government has shown its strength and resilience at this time of crisis by addressing this issue.
Since the year 2002, master-developers in Dubai have been pledging the freehold visas to attract foreign investment to real estate sector in the emirate. This has also drawn plenty of foreign investment into the sector.
This promise was facilitated to buyers in co-operation with Dubai Naturalization and Residency Department, and master developers in RAK and Ajman have followed suit, by attracting major investments into the property sector.
Among the seven emirates in UAE, five have certain designated areas for foreign nationals to buy and own properties on a freehold and leasehold basis. Sharjah, however, does not permit foreign nationals to own properties on freehold basis.
According to UAE constitution, the land in each emirate belongs to the Rulers, and they take decisions pertaining to ownership, usage or allocation of land.
Labels: Freehold Property, Latest News, Property Law
Amlak-Tamweel merger hoped to boost mortgage finance in UAE
Wednesday, January 07, 2009
Two major Islamic mortgage providers in the UAE - Amlak Finance PJSC and Tamweel, have merged into a new $8billion lender to ensure that mortgage thrives in the country for several more years.
According to Rami Sidani - Head MENA (Middle East and North Africa) Investments at Schroders Investment Management, although there is no direct added value or economic benefit to be derived out of the merger, having both major companies under a single entity would be the ideal strategy for the government to offer much-required support for the two largest players of mortgage finance in the country, which is a vital segment for real estate recovery.
With both companies being placed under the Emirates Development Bank, it is a strong indication that the government is acting quickly to stimulate the real estate sector and offer the required support, he added.
The Fund Manager of Al Mal Capital, Tarek Qaqish, said that the merger would improve the capability levels of both the companies. The merger of both under Emirates Development Bank would be supported by the Federal Government, and this would enhance the liquidity of both companies, he said.
The Chief Executives of both companies are hoping that the merger would be complete towards the first quarter of 2009.
According to Rami Sidani - Head MENA (Middle East and North Africa) Investments at Schroders Investment Management, although there is no direct added value or economic benefit to be derived out of the merger, having both major companies under a single entity would be the ideal strategy for the government to offer much-required support for the two largest players of mortgage finance in the country, which is a vital segment for real estate recovery.
With both companies being placed under the Emirates Development Bank, it is a strong indication that the government is acting quickly to stimulate the real estate sector and offer the required support, he added.
The Fund Manager of Al Mal Capital, Tarek Qaqish, said that the merger would improve the capability levels of both the companies. The merger of both under Emirates Development Bank would be supported by the Federal Government, and this would enhance the liquidity of both companies, he said.
The Chief Executives of both companies are hoping that the merger would be complete towards the first quarter of 2009.
Labels: Latest News, Mortgages
Deyaar successfully delivers Al Seef II units to owners
Tuesday, December 23, 2008
One of the fastest growing real estate companies in the region, Deyaar Development, delivered all 210 units of its Al Seef II tower to its residents last week.
The prime residential development, comprising double and triple bedroom apartments and penthouses with lake views is located in the Jumeirah Lakes Towers in Dubai. Being adjacent to the Sheikh Zayed Road, the development is in proximity to several other prime properties such as the Emirates Golf Course, Mall of Emirates and the Palm Jumeirah, and other major business hubs such as Dubai Media City, Jebel Ali Free Zone and Dubai Internet City.
Al Seef II includes all modern amenities such as health club, wide array of retail facilities and ample parking space.
The CEO of Deyaar, Markus Giebel, when speaking during the handover, said that the Al Seef II tower is an excellent upcoming community with business and lifestyle amenities. The project is in strict adherence to the best standards in the industry, and this indicates the commitment by Deyaar to cater to customer requirements.
Being one of the fastest growing Dubai-based property companies in the region, Deyaar Development PJSC has grown immensely and has proven to be a one-stop solutions provider. Apart from offering services such as marketing, sales and brokerage, Deyaar's strategic solutions have helped in creating exceptional value for investors. The company has developed over 16,000 commercial and residential properties till date, and is all set to continue and maintain its pivotal place in the property sector of the region.
The prime residential development, comprising double and triple bedroom apartments and penthouses with lake views is located in the Jumeirah Lakes Towers in Dubai. Being adjacent to the Sheikh Zayed Road, the development is in proximity to several other prime properties such as the Emirates Golf Course, Mall of Emirates and the Palm Jumeirah, and other major business hubs such as Dubai Media City, Jebel Ali Free Zone and Dubai Internet City.
Al Seef II includes all modern amenities such as health club, wide array of retail facilities and ample parking space.
The CEO of Deyaar, Markus Giebel, when speaking during the handover, said that the Al Seef II tower is an excellent upcoming community with business and lifestyle amenities. The project is in strict adherence to the best standards in the industry, and this indicates the commitment by Deyaar to cater to customer requirements.
Being one of the fastest growing Dubai-based property companies in the region, Deyaar Development PJSC has grown immensely and has proven to be a one-stop solutions provider. Apart from offering services such as marketing, sales and brokerage, Deyaar's strategic solutions have helped in creating exceptional value for investors. The company has developed over 16,000 commercial and residential properties till date, and is all set to continue and maintain its pivotal place in the property sector of the region.
Labels: Deyaar, Latest News
Major UAE property developers declares to proceed with projects
Friday, December 19, 2008
Few major property developers in the UAE have confirmed that they are not back-tracking their projects, or putting them on hold, in wake of the global recession. However, they did agree that the crisis has posed several odds for the industry, and is likely to affect small firms.
The Chairman of Pearl Dubai, Abdul Majeed al Fahim, said "As far as we are concerned there is no liquidity problem and our projects are on track. There may be some technical delays, but nor financial delays, and all projects would be delivered on time."
Al Fahim agreed that the crisis has posed challenges and hindrance for investors around the globe, and that few local projects that have been launched without proper planning or studies may get cancelled, particularly those set up by small firms.
Talking about the growth in property sector, he said that there could be positive growth in the UAE, but it could be a single digit growth.
Another executive from a major property company revealed that although the credit growth in UAE had slowed down, this has not made an impact on its projects worth Dh.70bn within and outside the emirate.
Sorouh Real Estate, which is currently executing projects worth Dh.70bn in Abu Dhabi, confirmed that it plans to go-ahead with all its projects as planned, despite the global meltdown.
The Chief Operation Officer of Sorouh Real Estate, Samer F. Abu Hijleh, said, that their businesses are growing despite the global financial crisis and the company has not sacked any employee, nor have plans to cut down workforce, and in fact, the company plans to recruit more workers.
Speaking to the press during the announcement of Arabian World Construction Summit Conference to be held between 9th and 11th February 2009, organized by Meed, he said, the Sun and Sky Towers on Reem Island of Abu Dhabi will be delivered in 2010. All the 1140 units of the two towers have been sold.
Sorouh has also sold 100 out of 111 plots to sub-developers on Shams on Reem Island.
The Chairman of Pearl Dubai, Abdul Majeed al Fahim, said "As far as we are concerned there is no liquidity problem and our projects are on track. There may be some technical delays, but nor financial delays, and all projects would be delivered on time."
Al Fahim agreed that the crisis has posed challenges and hindrance for investors around the globe, and that few local projects that have been launched without proper planning or studies may get cancelled, particularly those set up by small firms.
Talking about the growth in property sector, he said that there could be positive growth in the UAE, but it could be a single digit growth.
Another executive from a major property company revealed that although the credit growth in UAE had slowed down, this has not made an impact on its projects worth Dh.70bn within and outside the emirate.
Sorouh Real Estate, which is currently executing projects worth Dh.70bn in Abu Dhabi, confirmed that it plans to go-ahead with all its projects as planned, despite the global meltdown.
The Chief Operation Officer of Sorouh Real Estate, Samer F. Abu Hijleh, said, that their businesses are growing despite the global financial crisis and the company has not sacked any employee, nor have plans to cut down workforce, and in fact, the company plans to recruit more workers.
Speaking to the press during the announcement of Arabian World Construction Summit Conference to be held between 9th and 11th February 2009, organized by Meed, he said, the Sun and Sky Towers on Reem Island of Abu Dhabi will be delivered in 2010. All the 1140 units of the two towers have been sold.
Sorouh has also sold 100 out of 111 plots to sub-developers on Shams on Reem Island.
Labels: Latest News, Market Trends
Omniyat confirms timely delivery of all its launched projects
Thursday, December 18, 2008
Omniyat Properties, one of the most innovative private property development companies in the region, re-iterated its commitment to the timely delivery of all its launched projects.
With nine projects, worth more than Dh.13bn in progress, Omniyat confirmed delivery of all projects in a span of three years, at the rate of three deliveries per year.
The CEO of Omniyat, Peter Walichnowski, said that construction is progressing as scheduled for all launched projects of Omniyat, and the company is committed towards meeting delivery schedules. The first three projects - Bays water, One Business Bay and The Square, would be ready by April 2009. The second bath of three projects - Binary, The Pad, and Gemini would be ready by 2010, while next three projects - The Opus, the Octavian and Beachfront would be delivered by 2011.
"This indicates the faith by the company in the Dubai market and also that the company is well-placed to meet the prevailing market conditions. The company is focused on the needs of customers, and will deliver outstanding real estate projects that offer superior quality commercial and residential lifestyles," he added.
With nine projects, worth more than Dh.13bn in progress, Omniyat confirmed delivery of all projects in a span of three years, at the rate of three deliveries per year.
The CEO of Omniyat, Peter Walichnowski, said that construction is progressing as scheduled for all launched projects of Omniyat, and the company is committed towards meeting delivery schedules. The first three projects - Bays water, One Business Bay and The Square, would be ready by April 2009. The second bath of three projects - Binary, The Pad, and Gemini would be ready by 2010, while next three projects - The Opus, the Octavian and Beachfront would be delivered by 2011.
"This indicates the faith by the company in the Dubai market and also that the company is well-placed to meet the prevailing market conditions. The company is focused on the needs of customers, and will deliver outstanding real estate projects that offer superior quality commercial and residential lifestyles," he added.
Labels: Latest News, Omniyat
The Dh.351.5bn Jumeirah Gardens project by Meraas under review
Sunday, December 07, 2008
Meraas Development, the Dubai Government-owned realty company is reviewing the phasing and roll-out of its Dh.351.5bn 'Jumeirah Gardens' project in Satwa district, due to global downturn.
According to a statement by the company, the business strategies and phasing and rollout of Jumeirah Gardens are being reviewed in the most opportune way to cater to the changing requirements of investors.
The mega-project was launched by the company during the Dubai Cityscape exhibition held in October. The project, which had been due for construction over a 12-year period, will include 7 distinct areas, covering 110million square feet of land, including the islands.
One section would comprise the Dubai Park, which will be half the size of Safa Park. The Phase one of the project will cover 820,000 square meters and include low, mid and high-rise office, residential and retail buildings, apart from two hotels and a shopping arena.
It will also include several sky-rise towers, including the 1 Dubai, which is hoped to be one of the largest and tallest buildings in the world.
The Dubai Government has already established a panel to supervise the launch of future realty projects in the emirate, in view of the global economic turmoil. Such a panel has been established for the first time in Dubai.
The panel will however not look at projects that have already been launched, said Nasser Al Shaikh, the Director-General, Dubai Department of Finance.
"No projects will be called off and it will be up to the committee to decide on the launch," Al Shaikh said.
According to a statement by the company, the business strategies and phasing and rollout of Jumeirah Gardens are being reviewed in the most opportune way to cater to the changing requirements of investors.
The mega-project was launched by the company during the Dubai Cityscape exhibition held in October. The project, which had been due for construction over a 12-year period, will include 7 distinct areas, covering 110million square feet of land, including the islands.
One section would comprise the Dubai Park, which will be half the size of Safa Park. The Phase one of the project will cover 820,000 square meters and include low, mid and high-rise office, residential and retail buildings, apart from two hotels and a shopping arena.
It will also include several sky-rise towers, including the 1 Dubai, which is hoped to be one of the largest and tallest buildings in the world.
The Dubai Government has already established a panel to supervise the launch of future realty projects in the emirate, in view of the global economic turmoil. Such a panel has been established for the first time in Dubai.
The panel will however not look at projects that have already been launched, said Nasser Al Shaikh, the Director-General, Dubai Department of Finance.
"No projects will be called off and it will be up to the committee to decide on the launch," Al Shaikh said.
Labels: Jumeirah-Garden-City, Latest News
Current happenings in Dubai Property Sector
Monday, December 01, 2008
- Mega projects on hold
- Property companies axe jobs
- Smaller realty companies planning merger
With Dubai property sector undergoing a transitional phase, companies are reviewing their project strategies, and developers are more cautious with their future investments on projects, as several mega-developments are now being reviewed.
For instance, Nakheel has announced that parts of the Dh.350bn Jumeirah Garden City, the Trump International Hotel, the Tower on Palm Jumeirah, and the kilometer-high tower will be put on hold.
Even work on 'The Universe' will be restricted to preliminary studies, Nakheel said. Decrease in liquidity and financing has led to delay in progress of such projects, resulting in these projects bearing the brunt of financial turmoil. The mega-projects that had earlier brought about a property boom in Dubai, have now been put on hold.
Limitless too, revealed that it is reviewing construction schedule of Arabian Canal. The Head of Dubai's RERA, Marwan bin Galita, said that developers need to review their projects which are yet to be launched for sale. Recession is a very crucial phase, and RERA had been urging developers to do this about a year back, Galita said.
The Chairman of Crisis Management Committee, Mohammad al Abbar, last week said that it would pull back on its building spree due to the current financial crisis. Apart from backing out of its projects, Nakheel has also laid off 500 employees, constituting 15 percent of the company's work-force. All the 500 employees were offered redundancy package, including outplacement support services to assist them during this transitional phase.
Better Homes, Damac and Omniyat too, have followed suit, with Better Homes axing 50 jobs, Omniyat with 69 jobs, and Damac laid off 200 jobs, with the drop in demand for properties.
Meeras however, said that it does not have plans for lay-offs at the moment.
According to analysts, about 819 employees have lost their jobs in the Dubai real estate sector till date, with more to follow. However, the Head of Research and Consultancy at Cluttons, Matthew Green, said that these happenings are not restricted to the realty sector alone, and few other major corporate too, have announced staff reductions.
In the meanwhile, the time is now appropriate for small developers to join hands to bring confidence back into the market, say analysts.
A member of Financial Crisis Committee said that Dubai has been witnessing plenty of defaults on high-end properties with worsening financial conditions, and there are possibilities of merger among smaller developers. Even Head of RERA, Marwan bin Galita, agrees that merger between small companies would bring in more confidence, as good mergers in any sector adds more value to the sector.
The developers, Union Properties and Deyaar, although denied talks about any plans of merger, they were unable to comment on whether the government would order their merger.
Secondary prices in Dubai and Abu Dhabi fell 4 to 5 percent in October from the previous month, while the villa prices of Dubai dropped by 19 percent, under strict lending conditions, according to a recent HSBC statement.
The "off-plan" market is not doing too well, due to market speculations. Few of the banks have stopped financing, while few developers are said to be demanding exorbitant prices. However, the prices of "affordable" off-plan properties may pick-up during second quarter of 2009, if the banks improve on their lending, Bin Galita said.
RERA is likely to implement a new law on registration of off-plan properties next week.
On the whole, Dubai real estate sector has met with stringent mortgage lending measures, liquidity crunch, and real estate slowdown during recent months. The indications of property boom in Dubai, have atleast, temporarily halted, and developers are seen scaling back on their projects, while jobs are cut and property prices have plummeted.
Labels: Latest News, Market Trends
Dubai developers defer sale of new properties
Friday, November 28, 2008
Leading developers in Dubai are putting on hold the sales of their properties, until the situation improves in the real estate market of the emirate.
Nakheel's Palm Jebel Ali- Project Director, Ali Mansour, said that they plan to reassess sales strategies in light of the prevailing market conditions. "We are reviewing everything now, and have no new plans for the near future," said Ali Mansour.
Palm Jebel Ali is the second project of the Palm trilogy developed by Nakheel, located in the center of Jebel Ali, close to Al Maktoum International Airport and the Dubai Waterfront development. Featuring signature villas, garden villas, luxury apartments, town homes and penthouses, it is expected to house a population of 300,000.
Limitless has also not launched the sales of its Arabian Canal project. The Project Director for the Arabian Canal, Rainelan Raine, said that the company is watching the market carefully, and will judge the right time to commence sales.
"There is a huge interest in the Arabian Canal project but, the sales will have to wait," Raine said. Arabian Canals is one of the longest man-made canals, the excavation of which, will begin near Dubai Marina, and will flow inland around the Al Maktoum International Airport. Financing for the first stage of the project has already been completed, the developer said.
The Dubai-based real estate developer, Rufi Real Estate too, said that it is reviewing its strategies and has postponed the launch of few of its realty projects until the second quarter of 2009.
The developer was due to launch two of its residential towers in Meydaan and The World, where, three islands had been purchased. But, it has deferred all that for now. Rufi expressed hope about real estate prices picking up towards middle of 2009 in the emirate.
Nakheel's Palm Jebel Ali- Project Director, Ali Mansour, said that they plan to reassess sales strategies in light of the prevailing market conditions. "We are reviewing everything now, and have no new plans for the near future," said Ali Mansour.
Palm Jebel Ali is the second project of the Palm trilogy developed by Nakheel, located in the center of Jebel Ali, close to Al Maktoum International Airport and the Dubai Waterfront development. Featuring signature villas, garden villas, luxury apartments, town homes and penthouses, it is expected to house a population of 300,000.
Limitless has also not launched the sales of its Arabian Canal project. The Project Director for the Arabian Canal, Rainelan Raine, said that the company is watching the market carefully, and will judge the right time to commence sales.
"There is a huge interest in the Arabian Canal project but, the sales will have to wait," Raine said. Arabian Canals is one of the longest man-made canals, the excavation of which, will begin near Dubai Marina, and will flow inland around the Al Maktoum International Airport. Financing for the first stage of the project has already been completed, the developer said.
The Dubai-based real estate developer, Rufi Real Estate too, said that it is reviewing its strategies and has postponed the launch of few of its realty projects until the second quarter of 2009.
The developer was due to launch two of its residential towers in Meydaan and The World, where, three islands had been purchased. But, it has deferred all that for now. Rufi expressed hope about real estate prices picking up towards middle of 2009 in the emirate.
Labels: Latest News, Sales
Tameer, Omniyat, Emaar axe jobs
Thursday, November 27, 2008
Leading UAE-based developer Tameer has announced job lay-offs involving half of its workforce in view of the slowdown in the UAE property sector caused by the global financial turmoil.
Tameer handed over redundancy notices to about 180 employees last week. The company has a total of 350 employees. The main projects by the developer include the Podium in Dubailand, Platinum Towers in Business Bay, Tameer Towers in Al-Reem Island in Abu Dhabi.
The news of job cuts came on the same day when Omniyat Properties confirmed job cuts affecting one-third of its workforce, in order to ride out the real estate downturn. The company axed 69 jobs, and also called back few of its previously announced projects.
Damac Holding, the largest property developer in Dubai, also announced plans to lay off 200 employees.
In the meanwhile, the Chairman of Emaar Properties, Mohammed Ali Alabbar, said that there are possibilities of redundancies, due to the current slowdown witnessed in the market.
The financial crisis has hit the demand for properties in Dubai from foreign investors, which constitute the bulk of buyers, while tightening liquidity has made home financing seem more difficult.
According to reports by HSBC, the property prices in Dubai fell 4 percent between September and October this year, with the villa prices dropping by 19 percent.
Tameer handed over redundancy notices to about 180 employees last week. The company has a total of 350 employees. The main projects by the developer include the Podium in Dubailand, Platinum Towers in Business Bay, Tameer Towers in Al-Reem Island in Abu Dhabi.
The news of job cuts came on the same day when Omniyat Properties confirmed job cuts affecting one-third of its workforce, in order to ride out the real estate downturn. The company axed 69 jobs, and also called back few of its previously announced projects.
Damac Holding, the largest property developer in Dubai, also announced plans to lay off 200 employees.
In the meanwhile, the Chairman of Emaar Properties, Mohammed Ali Alabbar, said that there are possibilities of redundancies, due to the current slowdown witnessed in the market.
The financial crisis has hit the demand for properties in Dubai from foreign investors, which constitute the bulk of buyers, while tightening liquidity has made home financing seem more difficult.
According to reports by HSBC, the property prices in Dubai fell 4 percent between September and October this year, with the villa prices dropping by 19 percent.
Labels: Emaar, Latest News, Omniyat
RERA announces new online software for off-plan sales transactions
Tuesday, November 25, 2008
Dubai's RERA (Real Estate Regulatory Authority) announced that all real estate companies in Dubai should henceforth use the new online software 'Oqood' for off-plan property sales and transactions.
Any off-plan property sales through registered agents or brokers with RERA should be done online using the software through the agency. The software will offer a unified template of property sales contracts between sellers and buyers, duly designed and approved by the Agency.
The property developers are given a time period of three months to train their employees on this new system. The training will be provided by Emirates Real Estate Solutions (ERES), who designed the software.
In the opinion of Sultan Butti bin Mijrin, Director General, Land Department, and developer of the Oqood system, this is an important tool to regulate the property market.
Any off-plan property sales through registered agents or brokers with RERA should be done online using the software through the agency. The software will offer a unified template of property sales contracts between sellers and buyers, duly designed and approved by the Agency.
The property developers are given a time period of three months to train their employees on this new system. The training will be provided by Emirates Real Estate Solutions (ERES), who designed the software.
In the opinion of Sultan Butti bin Mijrin, Director General, Land Department, and developer of the Oqood system, this is an important tool to regulate the property market.
Labels: Latest News, Off-plan
Master developers getting more lenient with property developers
Monday, November 24, 2008
Eager to put an end to the confusion and panic prevailing currently in the market, the master developers are said to be offering payment extensions to property developers in Dubai.
A developer in Dubai, when speaking to the media, revealed that when they requested their master developer to defer their land payment, they were readily granted a three-month extension.
The extension granted was for a plot of land on the waterfront development, for which, the developer had remitted 50 percent of total value at the time of purchase.
In the meanwhile, the infrastructure projects in Dubai, such as the plans by Roads and Transport Authority and the new Al Maktoum International Airport in Jebel Ali, would all proceed as stipulated in Dubai Strategic Plan 2015.
According to Nasser Al Shaikh, the Director General of Dubai Department of Finance, a growth rate of 11 percent annually, is expected until 2015, but with the current situation, Dubai would continue to witness economic growth, although at lower rates.
The government and financial institutions are getting highly transparent in their operations and transactions. This is more evident, with Dubai initiating new laws to regulate its banking and property sectors, and this is no-doubt a positive outcome of the global crisis.
A developer in Dubai, when speaking to the media, revealed that when they requested their master developer to defer their land payment, they were readily granted a three-month extension.
The extension granted was for a plot of land on the waterfront development, for which, the developer had remitted 50 percent of total value at the time of purchase.
In the meanwhile, the infrastructure projects in Dubai, such as the plans by Roads and Transport Authority and the new Al Maktoum International Airport in Jebel Ali, would all proceed as stipulated in Dubai Strategic Plan 2015.
According to Nasser Al Shaikh, the Director General of Dubai Department of Finance, a growth rate of 11 percent annually, is expected until 2015, but with the current situation, Dubai would continue to witness economic growth, although at lower rates.
The government and financial institutions are getting highly transparent in their operations and transactions. This is more evident, with Dubai initiating new laws to regulate its banking and property sectors, and this is no-doubt a positive outcome of the global crisis.
Labels: Infrastructure, Latest News
Property agents optimistic about Dubai property market
Thursday, November 20, 2008
Several property agents in Dubai predict a bright property market, with the sector expected to pick-up within next six months.
The CEO of Dubai Properties, Mohammed Binbrek, said that the current issue is more due to public sentiment, than due to liquidity or resource availability. Once the fears and concerns of the people are addressed, the business would return to normal.
The same optimism was seen among the respondents of a survey, involving 170 Dubai-based property agents, out of which 77 percent felt that the issues currently plaguing the Dubai real estate sector would vanish in six months time.
Pointing out to other markets, the Managing Director of Better Homes, Ryan Mahoney, said that the markets had a slow phase for a couple of months, and then improved in terms of transactions, depending on the availability of financial lending.
But Mahoney predicts that although the transactions may not rise to previous levels within next six months, the prices would stop falling, and then grow again, which may take about a year.
The CEO of Dubai Properties, Mohammed Binbrek, said that the current issue is more due to public sentiment, than due to liquidity or resource availability. Once the fears and concerns of the people are addressed, the business would return to normal.
The same optimism was seen among the respondents of a survey, involving 170 Dubai-based property agents, out of which 77 percent felt that the issues currently plaguing the Dubai real estate sector would vanish in six months time.
Pointing out to other markets, the Managing Director of Better Homes, Ryan Mahoney, said that the markets had a slow phase for a couple of months, and then improved in terms of transactions, depending on the availability of financial lending.
But Mahoney predicts that although the transactions may not rise to previous levels within next six months, the prices would stop falling, and then grow again, which may take about a year.
Labels: Estate Agents, Latest News, Market Trends
Dubai Tower named as one of the Best 50 inventions of the Year
Wednesday, November 19, 2008
The worlds first rotating skyscraper, 'The Dynamic Tower', has been named as one among the "Best 50 inventions of the Year" by the TIME Magazine, due to its revolutionary design and innovation.
Created by David Fisher, the renowned Italian architect, the tower was one of the first choices in a list of ground-breaking inventions. Every floor of the tower rotates independently so as to form a building that constantly changes its shape and appearance, resulting in a unique and evolving architectural landmark.
The environment-friendly tower is the first building to be completely self-powered with wind turbines, positioned horizontally between each floor. The photovoltaic cells on the roof of each rotating floor, produces solar energy.
The Dynamic Tower in Dubai will also be the first high-rise to be built completely from prefabricated parts that are custom-built in a workshop and then installed on site.
This method comes with several benefits, including environmentally clean on-site construction, reduced time and cost of construction, less onsite accidents. Residents of the tower can park their cars at the entrance of the apartments with voice activated systems.
The residents can get a glimpse of the world rotating around them when looking through the glass wall of the buildings. These buildings will also be the first wherein construction begins at the top, with each floor mechanically installed from top to bottom.
Labels: Dubai City, Environment-friendly, Latest News
New online facility for interim property registrations launched in Dubai
Monday, November 17, 2008
The Dubai Land Department, the government body which monitors land-related affairs and private properties within the emirate, together with RERA (Real Estate Regulatory Authority), has announced the official launch of 'OQOOD', the new online application that enables the implementation of Law No.13 of 2008, which regulates the interim real estate register in Dubai.
The announcement, which came during an introductory seminar organized by the Dubai Land Department and RERA, organized for benefit of property developers in the emirate. The Dubai-based KM Properties sponsored the event.
Assistant Director General Excellence & Organization Governance, Mohammed Sultan Thani, said that Dubai has witnessed the issuance of real estate laws that prioritize the interest of country and all industry stakeholders. The laws aim to create trust in the market, attract foreign investment and sustain the growth of the sector. The latest law focuses on interim real estate register.
Developed by Emirates Real Estate Solutions for the Dubai Land Department, the process of 'OQOOD' online interim registration process will help minimize conflicts between developers, sellers and investors, while also reducing the growth of off-plan sales and reselling costs.
Charges levied by the Dubai Land Department would remain the same one percent of total value paid by seller, and the one percent paid by consumer.
According to analysts, the new registration scheme will bring about higher transparency levels and eventually create an online Propety Price Index (PPI).
The Chief Executive of Emirates Real Estate Solutions, Ahmad Al Qaizi, said that the online launch would facilitate availability of detailed data on private proprietorship of all properties that have been sold off-plan in Dubai.
It will protect the rights of customers by safe-guarding development against any manipulation, and also safeguards the interest of developers, investors and end-users and the government. The move also depicts seriousness from the end of government in raising transparency, Qaizi said.
About 80,000 units or more have already been registered through the online registration facility so far.
The announcement, which came during an introductory seminar organized by the Dubai Land Department and RERA, organized for benefit of property developers in the emirate. The Dubai-based KM Properties sponsored the event.
Assistant Director General Excellence & Organization Governance, Mohammed Sultan Thani, said that Dubai has witnessed the issuance of real estate laws that prioritize the interest of country and all industry stakeholders. The laws aim to create trust in the market, attract foreign investment and sustain the growth of the sector. The latest law focuses on interim real estate register.
Developed by Emirates Real Estate Solutions for the Dubai Land Department, the process of 'OQOOD' online interim registration process will help minimize conflicts between developers, sellers and investors, while also reducing the growth of off-plan sales and reselling costs.
Charges levied by the Dubai Land Department would remain the same one percent of total value paid by seller, and the one percent paid by consumer.
According to analysts, the new registration scheme will bring about higher transparency levels and eventually create an online Propety Price Index (PPI).
The Chief Executive of Emirates Real Estate Solutions, Ahmad Al Qaizi, said that the online launch would facilitate availability of detailed data on private proprietorship of all properties that have been sold off-plan in Dubai.
It will protect the rights of customers by safe-guarding development against any manipulation, and also safeguards the interest of developers, investors and end-users and the government. The move also depicts seriousness from the end of government in raising transparency, Qaizi said.
About 80,000 units or more have already been registered through the online registration facility so far.
Labels: Latest News, Property Law
Panel established to monitor future real estate projects
Saturday, November 15, 2008
With property slowdown hitting the emirate, a committee has been established by the Dubai Government to monitor future real estate projects.
The Panel constitutes master and private developers with the intention of securing future supply. No projects would be called off and the committee will decide on anything to be launched only in the future, he said.
Fears of property sector slowing down have been worsened by the global financial crisis, and this has made financing harder to come by and led to project delays.
The biggest developer of the Arab world, Emaar Properties, when speaking to the media, mentioned that it would provide more time to customers to repay their mortgages, given the lending conditions among local banks.
However, a 9 to 13 percent slow down is likely due to the current global recession, said Emaar Chairman, Mohammed Alabbar.
The Panel constitutes master and private developers with the intention of securing future supply. No projects would be called off and the committee will decide on anything to be launched only in the future, he said.
Fears of property sector slowing down have been worsened by the global financial crisis, and this has made financing harder to come by and led to project delays.
The biggest developer of the Arab world, Emaar Properties, when speaking to the media, mentioned that it would provide more time to customers to repay their mortgages, given the lending conditions among local banks.
However, a 9 to 13 percent slow down is likely due to the current global recession, said Emaar Chairman, Mohammed Alabbar.
Labels: Dubai Real Estate, Latest News
Dubai property market slowdown may be short-lived: Experts
Thursday, November 13, 2008
With the ongoing speculation in the property market, coupled with the liquidity squeeze which gripped the local banking sector, the Dubai property sector has come to a halt, and fewer people are seen investing on new properties.
A "dramatic slowdown" is likely in the short-term, as property developers such as Nakheel and Emaar will find it difficult in securing new financing, reports the Gulf News.
However, the projects that have already commenced and have already made commitments with financial institutions will continue, despite the financial turmoil, as the local banking system in the UAE has already been injected with liquidity.
According to industry sources, the current drop in real estate does not seem long-lasting. Although at present the property prices have eased a bit, the forthcoming slowdown in construction will reduce supply, which in turn, would drive up the prices again.
The Chief Executive of Rasmala Investments, a networking event with Dubai Property Sector, Ali Al Shihabi, agrees that there is little demand for real estate at present, as the investors are cautious and are awaiting prices to drop further. The Banks also do not have much capital to finance the development of new properties.
However, for an investor, this would be the best time to buy. Existing projects would continue. Major developers would continue their work, although at a reduced level. Dubai already has solid work for the next three years, and the current slowdown in supply would once again generate demand and increase in prices, during the next few years, Al Shihabi said.
The Resident Partner of Property Consultancy firm Cluttons, Ronald Hinchey, said that the slump in real estate activity may be due to the lack of liquidity in Banks and the reduction in loan-to-value ratios.
People are finding it difficult to borrow money for property as the mortgage providers have lowered their loan-to-value ratios to 50 to 70 percent from the earlier 80 to 90 percent. The lending institutions too have committed funds on properties that are under construction.
Al Shihabi pointed out that Dubai has been hit by its own financial turmoil this year, due to the downfall of major financial institutions such as the Lehman Brothers in the US. During the first six months of the year, an influx of several billion dollars from global financial institutions has been common.
A "dramatic slowdown" is likely in the short-term, as property developers such as Nakheel and Emaar will find it difficult in securing new financing, reports the Gulf News.
However, the projects that have already commenced and have already made commitments with financial institutions will continue, despite the financial turmoil, as the local banking system in the UAE has already been injected with liquidity.
According to industry sources, the current drop in real estate does not seem long-lasting. Although at present the property prices have eased a bit, the forthcoming slowdown in construction will reduce supply, which in turn, would drive up the prices again.
The Chief Executive of Rasmala Investments, a networking event with Dubai Property Sector, Ali Al Shihabi, agrees that there is little demand for real estate at present, as the investors are cautious and are awaiting prices to drop further. The Banks also do not have much capital to finance the development of new properties.
However, for an investor, this would be the best time to buy. Existing projects would continue. Major developers would continue their work, although at a reduced level. Dubai already has solid work for the next three years, and the current slowdown in supply would once again generate demand and increase in prices, during the next few years, Al Shihabi said.
The Resident Partner of Property Consultancy firm Cluttons, Ronald Hinchey, said that the slump in real estate activity may be due to the lack of liquidity in Banks and the reduction in loan-to-value ratios.
People are finding it difficult to borrow money for property as the mortgage providers have lowered their loan-to-value ratios to 50 to 70 percent from the earlier 80 to 90 percent. The lending institutions too have committed funds on properties that are under construction.
Al Shihabi pointed out that Dubai has been hit by its own financial turmoil this year, due to the downfall of major financial institutions such as the Lehman Brothers in the US. During the first six months of the year, an influx of several billion dollars from global financial institutions has been common.
Labels: Latest News, Market Trends
Registration deadline extended for off-plan properties in Dubai
Monday, November 10, 2008
The last date for registration of off-plan properties, under the pre-registration system, by the Dubai developers has been extended till the year-end. Earlier the first week of November was declared as the deadline for registration of off-plan properties.
According to a senior government official, the projects launched prior to introduction of pre-registration system, being sold as off-plan now, will have to register by the year-end. Stringent measures would be taken against those failing to do so, the official warned.
The Assistant Director-General of Dubai Land Department, Mohammed Sultan Thani, said that following the issuance of Law No.13 of 2008, developers are required to register all their units before launch with the Land Department, and only then proceed with their sales.
The Law No.13 regulates initial property registration in Dubai, and aims to create further safeguard consumer interest in the Dubai property market through introduction of mandatory system of pre-registration at the Land Department for off-plan sale contracts of property units.
As per the new regulation, any off-plan sales without registration will remain invalid. Off-plan sale implies the sale of real estate units on the basis of architectural plan of the property prior to building the structure. The registration has to be done by the developer and not the first purchaser.
During the secondary sale, the seller will have to keep the department informed and register the deed by paying necessary charges. In case of home mortgages, banks will have to register the deals and not the mortgagee, Thani said.
According to a senior government official, the projects launched prior to introduction of pre-registration system, being sold as off-plan now, will have to register by the year-end. Stringent measures would be taken against those failing to do so, the official warned.
The Assistant Director-General of Dubai Land Department, Mohammed Sultan Thani, said that following the issuance of Law No.13 of 2008, developers are required to register all their units before launch with the Land Department, and only then proceed with their sales.
The Law No.13 regulates initial property registration in Dubai, and aims to create further safeguard consumer interest in the Dubai property market through introduction of mandatory system of pre-registration at the Land Department for off-plan sale contracts of property units.
As per the new regulation, any off-plan sales without registration will remain invalid. Off-plan sale implies the sale of real estate units on the basis of architectural plan of the property prior to building the structure. The registration has to be done by the developer and not the first purchaser.
During the secondary sale, the seller will have to keep the department informed and register the deed by paying necessary charges. In case of home mortgages, banks will have to register the deals and not the mortgagee, Thani said.
Labels: Latest News, Off-plan, Property Law
Leasing activity to grow in Dubai
Friday, November 07, 2008
Leasing activity in Dubai will catch pace, as the sellers try to focus on demand patterns that signal the change to an end-user driven buyers' market, commented an industry expert.
The real estate market in Dubai is resilient and will withstand the current economic crisis, without facing any over-supply problems, said Cliff Kelaita, Chairman of Landmark Properties.
The current supply-demand situation would increase the number of sellers coming forward to lease to end-users. Likewise, we anticipate that end-users would purchase units and lease them to generate more income against mortgages. Hence, the lenders are likely to further stimulate the leasing market by launching new 'buy-to-let' products that suits requirement of end-users, Cliff said.
According to analysts from Landmark Advisory, the research and consultancy division of Landmark Properties, despite the huge growth in 2008, property prices in Dubai are still below the levels of comparable markets in cities such as London, New York or Hong Kong.
Hence, even if few projects gets delayed, or restructured, due to developers trying to cope with the current challenges, the market would still continue to remain strong and grow, Cliff assured.
As per the report by Landmark, the current liquidity concerns in the short-to-medium-term horizon would be a function of governmental action.
The real estate market in Dubai is resilient and will withstand the current economic crisis, without facing any over-supply problems, said Cliff Kelaita, Chairman of Landmark Properties.
The current supply-demand situation would increase the number of sellers coming forward to lease to end-users. Likewise, we anticipate that end-users would purchase units and lease them to generate more income against mortgages. Hence, the lenders are likely to further stimulate the leasing market by launching new 'buy-to-let' products that suits requirement of end-users, Cliff said.
According to analysts from Landmark Advisory, the research and consultancy division of Landmark Properties, despite the huge growth in 2008, property prices in Dubai are still below the levels of comparable markets in cities such as London, New York or Hong Kong.
Hence, even if few projects gets delayed, or restructured, due to developers trying to cope with the current challenges, the market would still continue to remain strong and grow, Cliff assured.
As per the report by Landmark, the current liquidity concerns in the short-to-medium-term horizon would be a function of governmental action.
Labels: Latest News
The largest-ever Dubai Mall opens to public tomorrow
Monday, November 03, 2008
Emaar's flagship shopping mall, will open doors to public tomorrow, the 4th November at 2pm. The mall marks the largest ever opening of any shopping mall in the world, considering the retail offer.
The unveiling of the Dubai Mall will be marked by a series of high profile activities featured throughout the mall. The Guinness World record winner for the World's Largest Acrylic Panel, Dubai Aquarium and Discovery Center, will be unveiled at 4pm. Other attractions include exhibits, galleries, fashion shows and performers.
The Dubai Mall enjoys direct road access from Sheikh Zayed Road, Emaar Boulevard, Financial Street Road, new bridge off Interchange One and the Down Town Burj Dubai.
With about 600 retail outlets, several popular books such as Hamleys, Waitrose, and Kinokuniya are awaiting their debut in the Middle East at the mall. Apart from the Dubai Aquarium and Discovery Center, the mall also includes the Olympic-sized Dubai Ice Rink, the Fashion Catwalk atrium, and the world's largest indoor Gold Souk.
The Dubai Mall also has two department stores Galeries Lafayette and Bloomingdale, both making their regional debut. About 14,000 undercover car park spaces across three car parks and adjoining luxury five-star hotel, The Address, which includes 250 rooms and 450 serviced residences will also form a part of The Dubai Mall.
With its world-class integrated approach towards leisure and retail, the Dubai Mall is hoped to redefine the shopping experience of people and visitors of Dubai.
With more than 1200 retail outlets, and 160 food and beverage outlets, the mall is an integral component of Downtown Burj Dubai. The 500-acre mixed-use development is anchored by the iconic Burj Dubai, the world's tallest building.
The regular working hours of the mall would be from 10am to midnight daily.
Emaar Malls Group, the developer of this iconic project, is the retail and shopping mall subsidiary of Emaar Properties PJSC, the leading Dubai-based property developer, which has diversified into shopping malls. This forms a part of Emaar's vision 2010 to grow into one of the most valuable companies in the world.
Labels: em, Latest News, Shopping Mall
Drop in property prices & cancellation of projects, unlikely: Sulayem
Friday, October 31, 2008
Sultan Ahmed bin Sulayem, the Chairman of Dubai World, has denied the possibility of any drop in Dubai property prices, and assured that the global financial crisis, will not cause cancellation of any project announced by the group.
When speaking to bankers at the Dubai International Financial Center, Sulayem pointed out that the Gulf economies enjoy a stronger foundation, unlike the problems faced in Iceland or any other place.
"We have taken loans, most of which are borrowed locally. All projects launched are funded by the banks within the region," he pointed out.
Dubai property market continues to remain strong despite the global liquidity crunch. Although the demand-supply imbalance continues, there is no downward trend being noticed in prices, despite few desperate investors trying to sell at lower prices.
With reference to the slowdown in property sales, Sulayem said that the market sure has appetite, but lacks the will.
According to Sulayem, the biggest challenge faced now is not liquidity, but fear. The dropping confidence levels are causing people to react in an irrational manner.
Speaking about the Dubai real estate sector, Sulayem said "We are optimistic about the sector, and are committed towards delivering all projects that we have announced. However, the cost of funding has increased, and we are intelligently managing our finance."
He continued that the investor fear is hindering the recovery of stock market. With the share prices being down, nobody wants to buy. He requested banks to curb speculative practices and focus on their conventional role of lending.
Sulayem also took the opportunity to hail the Gulf central banks that restricted lending, which has protected the banking system.
When speaking to bankers at the Dubai International Financial Center, Sulayem pointed out that the Gulf economies enjoy a stronger foundation, unlike the problems faced in Iceland or any other place.
"We have taken loans, most of which are borrowed locally. All projects launched are funded by the banks within the region," he pointed out.
Dubai property market continues to remain strong despite the global liquidity crunch. Although the demand-supply imbalance continues, there is no downward trend being noticed in prices, despite few desperate investors trying to sell at lower prices.
With reference to the slowdown in property sales, Sulayem said that the market sure has appetite, but lacks the will.
According to Sulayem, the biggest challenge faced now is not liquidity, but fear. The dropping confidence levels are causing people to react in an irrational manner.
Speaking about the Dubai real estate sector, Sulayem said "We are optimistic about the sector, and are committed towards delivering all projects that we have announced. However, the cost of funding has increased, and we are intelligently managing our finance."
He continued that the investor fear is hindering the recovery of stock market. With the share prices being down, nobody wants to buy. He requested banks to curb speculative practices and focus on their conventional role of lending.
Sulayem also took the opportunity to hail the Gulf central banks that restricted lending, which has protected the banking system.
Labels: Latest News, Market Trends
The six-year property boom in Dubai may slow down, fear agents
Wednesday, October 29, 2008
The six year property boom that Dubai witnessed has almost ended, with the sales collapsing amidst fears of global economic downturn, reveal agents.
"Last month was the worst, a real disaster," said Mehdi Zoghbi, a property agent at the Middle East Real Estate Consultants, who spoke to Zawya.com.
The sellers are desperate and are now offering their off-plan properties on the secondary market for zero premium, despite the loss on investment, just to offload quickly, it is said.
Dubai, being the first emirate to permit foreigners to purchase homes, will also be the first to see a drop in property prices, with the global credit crunch and region's prospects undermining investor confidence.
According to a property agent at Al Jabal Real Estate, the commissions have dropped by 70 percent currently. Dubai needs to apply caution to curb the practice of "flipping" property and payment of "key money" to reserve real estate, the agent said.
However, the biggest developers in the city, such as Nakheel and Emaar are confident that sales will remain robust. The Chairman of Emaar, Mohammed Alabbar, in his statement, expressed confidence about the fundamentals and future growth of the company.
Despite this, Emaar's stock has fallen 62 percent since the beginning of the year, which is more than 48 percent fall in Dubai Financial market's main index during the same period. Colliers International reported that property price growth in Dubai dropped to 16 percent during second half of the year from 42 percent during the first quarter of the year.
Even Morgan Stanley had warned a drop in prices by 10 percent in Dubai towards 2010.
A drop in property prices of Dubai, would also burden the Dubai economy further, considering the fact that it does not profit from the vast oil income otherwise enjoyed by its neighboring emirate Abu Dhabi. At present property and construction contribute to about 30 percent of the economy in the emirate.
The strong economic condition in the region which had supported the property boom in Dubai, too, has now been badly hit.
Considering all such factors, whether buyers would still continue to respond amidst the current depressing economic stance is yet to be ascertained.
"Last month was the worst, a real disaster," said Mehdi Zoghbi, a property agent at the Middle East Real Estate Consultants, who spoke to Zawya.com.
The sellers are desperate and are now offering their off-plan properties on the secondary market for zero premium, despite the loss on investment, just to offload quickly, it is said.
Dubai, being the first emirate to permit foreigners to purchase homes, will also be the first to see a drop in property prices, with the global credit crunch and region's prospects undermining investor confidence.
According to a property agent at Al Jabal Real Estate, the commissions have dropped by 70 percent currently. Dubai needs to apply caution to curb the practice of "flipping" property and payment of "key money" to reserve real estate, the agent said.
However, the biggest developers in the city, such as Nakheel and Emaar are confident that sales will remain robust. The Chairman of Emaar, Mohammed Alabbar, in his statement, expressed confidence about the fundamentals and future growth of the company.
Despite this, Emaar's stock has fallen 62 percent since the beginning of the year, which is more than 48 percent fall in Dubai Financial market's main index during the same period. Colliers International reported that property price growth in Dubai dropped to 16 percent during second half of the year from 42 percent during the first quarter of the year.
Even Morgan Stanley had warned a drop in prices by 10 percent in Dubai towards 2010.
A drop in property prices of Dubai, would also burden the Dubai economy further, considering the fact that it does not profit from the vast oil income otherwise enjoyed by its neighboring emirate Abu Dhabi. At present property and construction contribute to about 30 percent of the economy in the emirate.
The strong economic condition in the region which had supported the property boom in Dubai, too, has now been badly hit.
Considering all such factors, whether buyers would still continue to respond amidst the current depressing economic stance is yet to be ascertained.
Labels: Dubai Real Estate, Latest News, Market Trends, Property Prices
Ajman Gate hoped to be a major boost to Ajman property sector
Friday, October 24, 2008
The UAE-based realty developer, Falcon Eye, together with Estate 400, a full service consultancy, sales and management firm, is investing Dh.1.5bn into development of a commercial and residential development, 'Ajman Gate' in Ajman.
Located along the main entrance of Eye of Ajman, off the Emirates Road, the 'Ajman Gate' comprises two towers with connecting cable work between them, creating a gate-like structure that overlooks master development.
Each tower would spread along a total built-up area of 872,000 square feet, for a combined 1,750,000 square feet. About 2400 units and office units would spread across the area, with an equal amount of parking bays.
Adnan Saffarini, the Architect, designer and Engineering Consultant of Ajman Gate, when speaking about the property sector in Ajman, said that the Ajman freehold property sector is more than just a residential hub for the low-income group. It is fast developing to be an alternative for the upper middle class, as a convenient residential and commercial community with everything located within 20 minutes drive from Emirates Road.
There is also considerable demand from the commercial sector, owing to the success of residential projects. Hence the Ajman Gate is aptly designed to offer a blend of both residential apartments and office modules, he added.
Residential units of Ajman Gate will be sold at a starting price of Dh.600 per square feet, while commercial units would be sold at a starting price of Dh.750 per square feet.
The construction and delivery of the entire project would happen within the next four years.
According to Khan, Ajman's booming real estate sector is growing to be popular among investors due to its competitive prices and rapid appreciation in market value and minimal risks.
Labels: Ajman, Latest News
Prices of Dubai villas surge 50 percent in two years
Thursday, October 23, 2008
The prices of villas in Dubai have sky-rocketed in the recent past. The last two years have seen an increase of 50 percent in the prices of villas. About 13,800 more villas are likely to hit the market within the next two years at various locations of the emirate, say experts.
Majority of these villas will be located in the Al Furjan development by Nakheel, while the others would come up in the Jumeirah Village, Waterfront, Dubai Silicon Oasis and Jumeirah Golf Estate.
Recent report by EFG-Hermes, titled "The Brave New World" states that the year 2008 has seen delivery of about 30,000 housing units so far, and another 50,000 are expected to be delivered by the year end.
The villas in Dubai that have already attained completion are the Springs, Emirates Hills, Arabian Ranches, Meadows, Jumeirah Island, The Lakes, and the Palm Jumeirah. The villa are classified into sub-categories, such as independent villas, townhouses, and signature villas, which has seen escalation in selling price by 50 percent during the last two years.
According to Vineet Kumar, the Head of Sales, Asteco Property Management, the prices of townhouses have risen by 45 to 65 percent during the past two years, while prices of luxury villas have escalated by 50 to 55 percent.
An Asteco research reveals that the prices of single to triple bedroom townhouses in Dubai, currently, are in the range of Dh.1.6mn to Dh.3.8mn. Signature villas of four to 12 bedrooms fall in the range of Dh.18mn to Dh.130mn.
A report by Colliers International reveals that the price increases are mainly contributed by the projects that are nearing completion. Colliers has recorded a 73 percent increase in villa prices during the second quarter of 2008, compared to same period last year. The townhouses have recorded 38 percent price increase during the second quarter of this year. The report indicated a 76 percent year-on-year increase during the same periods in residential prices in Dubai.
According to Asteco, although the past two years has seen a dearth of villas in the market, the coming years will narrow down this gap, through supply of several new developments such as The Villa in Dubailand, Veneto in Dubai, Waterfront, and Jumeirah Golf Estates.
Asteco feels that the current demand in the Dubai villa market is highest for mid-range villas which generate interest from both investors and end-users, as they are sold easily and return reasonable rentals.
The international buyers prefer waterfront or golf-course facing villas, but, on the whole, the villa market in the UAE and GCC markets have seen wide absorption. The villas have recorded strong demand from expatriates and the local population.
Premium on properties nearing completion have commanded higher premium than off-plan properties. The rental rates on villas in Dubai, too, have seen an increase of an average 30 percent.
Even the apartment prices in Dubai have risen by 83 percent during second quarter of this year, in comparison to same period last year.
Asteco, however, believes that UAE is witnessing an undersupply of affordable accommodation.
The current average prices of affordable apartments in Dubai are in the range of Dh.900 and Dh.1200 per square foot. The mid-range villas are priced in the range of Dh.1500 and Dh.2500 per square foot. Luxury apartments are priced in the range of Dh.3500 and Dh.14000 per square foot.
According to Kumar, based on the trend of regional and international demands, increased interest is seen among buyers for the mid-range products.
Labels: Latest News, Property Prices
Over 40% say it is still a good time to buy property in Dubai
Monday, October 20, 2008
Since the recent dramatic events in the financial world around the globe, the organisers of this weeks' Worldwide Property Show being held in Dubai have just announced the results of a recent survey on investor confidence conducted in association with YouGovSiraj.
The survey shows an optimistic view, with one fourth of respondents feeling that the global crisis will only have a minor impact on the local UAE Property Market. 56% surveyed felt that there may be a slowdown but will not have the same impact as in Europe and US.
The survey further revealed that Dubai residents are more confident than those living in Abu Dhabi and Sharjah however 40% of all respondents felt that now is still a good time to invest as they can pick up a bargain. 16% of respondents were not sure and were sitting on the fence.
When deciding on the developer -value for money, ability to adhere to promises and transparency of information are the attributes that people look at. The least important attribute is public information available either on a website or in the media. This indicates that consumers are anxious about cost of ownership and the inherent investment value of the property.
Respondents were also asked what were their top destinations for real estate investment around the world - 55% favoured Asia, 40% for Middle East, 32% for Europe & UK and 27% for North America.
George Betz ,International Sales Director at Dubai Shows Limited organisers of the Worldwide Property Show said: "Considering our survey has literally been completed in the last few days since the global meltdown, it is very encouraging to see that people still understand the merit in investing in real estate and that now is still a good time to buy as prices are low."
Betz continued: "The Worldwide Property Show which started in 1995 has received a record number of developers and estate agents wishing to participate in this season's show and will feature 85 exhibitors from 32 countries including USA, Egypt, Morocco and UK, as well as emerging Asian markets such as Philippines and Thailand and a very wide variety of UAE developers and agents."
Mike Bridge, Business Development Director at Dubai Shows Limited said: "With developers feeling the pinch, it is definitely a buyers market with great opportunities to select prime property in some of the best locations in the world. You cannot take away the benefits, even in a crisis, of a fabulous city or beautiful coastline."
Bridge added: "It is also good news that the banks have recently received Governments' support and are more likely to be in a position to fund property investment again".
The Worldwide Property Show and UAE Developer, the UAE's longest running consumer property exhibition opens 23rd to 25th October 2008 at the Grand Hyatt Dubai.
The survey shows an optimistic view, with one fourth of respondents feeling that the global crisis will only have a minor impact on the local UAE Property Market. 56% surveyed felt that there may be a slowdown but will not have the same impact as in Europe and US.
The survey further revealed that Dubai residents are more confident than those living in Abu Dhabi and Sharjah however 40% of all respondents felt that now is still a good time to invest as they can pick up a bargain. 16% of respondents were not sure and were sitting on the fence.
When deciding on the developer -value for money, ability to adhere to promises and transparency of information are the attributes that people look at. The least important attribute is public information available either on a website or in the media. This indicates that consumers are anxious about cost of ownership and the inherent investment value of the property.
Respondents were also asked what were their top destinations for real estate investment around the world - 55% favoured Asia, 40% for Middle East, 32% for Europe & UK and 27% for North America.
George Betz ,International Sales Director at Dubai Shows Limited organisers of the Worldwide Property Show said: "Considering our survey has literally been completed in the last few days since the global meltdown, it is very encouraging to see that people still understand the merit in investing in real estate and that now is still a good time to buy as prices are low."
Betz continued: "The Worldwide Property Show which started in 1995 has received a record number of developers and estate agents wishing to participate in this season's show and will feature 85 exhibitors from 32 countries including USA, Egypt, Morocco and UK, as well as emerging Asian markets such as Philippines and Thailand and a very wide variety of UAE developers and agents."
Mike Bridge, Business Development Director at Dubai Shows Limited said: "With developers feeling the pinch, it is definitely a buyers market with great opportunities to select prime property in some of the best locations in the world. You cannot take away the benefits, even in a crisis, of a fabulous city or beautiful coastline."
Bridge added: "It is also good news that the banks have recently received Governments' support and are more likely to be in a position to fund property investment again".
The Worldwide Property Show and UAE Developer, the UAE's longest running consumer property exhibition opens 23rd to 25th October 2008 at the Grand Hyatt Dubai.
Labels: Dubai Real Estate, Latest News, Property-show
Cityscape 2008 witnessed more visitors, lesser sales
Saturday, October 11, 2008
The five-day extravaganza, Cityscape 2008, ended on Thursday, at the World Trade Center, Dubai. According to the organizers about 70,000 to 80,000 visitors had turned up during the event, although only 60,000 visitors were anticipated, thereby confirming its position as the world's biggest business-to-business real estate investment and development event.
This year's Cityscape has seen everything, starting from the one-kilometer tall tower, to hanging gardens, mergers, royal visits and an island museum.
The event saw the participation of about 150 countries. According to the Managing Director of Cityscape, Rohan Marwaha, the opening hours of the event was extended by an hour each day due to exceptional public demand.
He said that this indicates the uniqueness of Cityscape Dubai, as it is not a retail event where people gather to buy individual properties. Rather, it is an investor-level, international business-to-business show.
A major strength of Cityscape is that it offers access to few of the wealthiest and most liquid property investors in the world, he added.
However, although the Cityscape organizers claim that there has been more interest this year from investors, compared to last year, the property sellers reveal that potential buyers are scared of investing.
A sales executive of RAK Properties, who spoke to Gulf News, said that sales in Cityscape 2008 were a little low compared to last year.
Mansoureh Ghezipour, a property consultant, Best Homes Emirates Real Estate said that although people trusted the market last year, this year they are hesitant to invest, although the number of visitors are more.
According to Sikander Aziz, Sales Executive, Bonyan International Investments Group, interest of visitors is high, but buying is low. This could be due to global liquidity conditions, he added.
Ian Albert, Regional Director, Colliers International, said "Investors this year are more cautious, and there has been greater degree of diligence. An air of cautiousness is seen seeping in from the general feelings of the international market."
The event ended on a high note, with a visit by H.H. Shaikh Mohammad Bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE and Ruler of Dubai.
This year's Cityscape has seen everything, starting from the one-kilometer tall tower, to hanging gardens, mergers, royal visits and an island museum.
The event saw the participation of about 150 countries. According to the Managing Director of Cityscape, Rohan Marwaha, the opening hours of the event was extended by an hour each day due to exceptional public demand.
He said that this indicates the uniqueness of Cityscape Dubai, as it is not a retail event where people gather to buy individual properties. Rather, it is an investor-level, international business-to-business show.
A major strength of Cityscape is that it offers access to few of the wealthiest and most liquid property investors in the world, he added.
However, although the Cityscape organizers claim that there has been more interest this year from investors, compared to last year, the property sellers reveal that potential buyers are scared of investing.
A sales executive of RAK Properties, who spoke to Gulf News, said that sales in Cityscape 2008 were a little low compared to last year.
Mansoureh Ghezipour, a property consultant, Best Homes Emirates Real Estate said that although people trusted the market last year, this year they are hesitant to invest, although the number of visitors are more.
According to Sikander Aziz, Sales Executive, Bonyan International Investments Group, interest of visitors is high, but buying is low. This could be due to global liquidity conditions, he added.
Ian Albert, Regional Director, Colliers International, said "Investors this year are more cautious, and there has been greater degree of diligence. An air of cautiousness is seen seeping in from the general feelings of the international market."
The event ended on a high note, with a visit by H.H. Shaikh Mohammad Bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE and Ruler of Dubai.
Labels: Cityscape, Latest News
Ajman forbids issuance of freehold visas
The Ajman Naturalization and Residency Department has stopped issuance and renewal of investors' visas for freehold property owners in Ajman.
Investors and property buyers will not be able to even obtain a visit visa for their spouses or children, but, most developers are still continuing to sell properties promising a residence visa.
According to sources, no visit visa or residence visa will be issued to people who purchase properties.
For obtaining a residence visa, one should own a business or a job in Ajman. Any unemployed will not be issued visa, even if they own a freehold property, revealed officials.
Ajman is the second emirate to have taken this stand, after Dubai. About 20,000 or more foreigners have already moved into their freehold homes in Dubai, and a few more have been handed over to buyers in Ajman. Ajman has been witnessing major construction activities in the recent months.
This initiative is aimed at regulating the visa rules. Till date, many used to either purchase an apartment to obtain a residence visa and then sell the apartment to somebody else, who already had a visa.
Investors and property buyers will not be able to even obtain a visit visa for their spouses or children, but, most developers are still continuing to sell properties promising a residence visa.
According to sources, no visit visa or residence visa will be issued to people who purchase properties.
For obtaining a residence visa, one should own a business or a job in Ajman. Any unemployed will not be issued visa, even if they own a freehold property, revealed officials.
Ajman is the second emirate to have taken this stand, after Dubai. About 20,000 or more foreigners have already moved into their freehold homes in Dubai, and a few more have been handed over to buyers in Ajman. Ajman has been witnessing major construction activities in the recent months.
This initiative is aimed at regulating the visa rules. Till date, many used to either purchase an apartment to obtain a residence visa and then sell the apartment to somebody else, who already had a visa.
Labels: Ajman, Latest News
Cityscape Dubai 2008 successfully enters Day 3
Wednesday, October 08, 2008
The Cityscape Dubai 2008 was opened by the Crown Prince of Dubai, Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, on Monday at the Dubai International Exhibition Center.
About 60,000 participants from over 150 countries had gathered in Dubai, to be a part of the world’s largest development exhibition and its associated conferences, which is expected to break all previous records. About 40,000 visitors flocked the Cityscape Dubai during the first two days of the show, which exceeds a total of three days of crowd gathering during last year's event.
After touring the exhibition on its opening day, Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum spent a little time on the Sama Dubai stand. The Dh.350bn Jumeirah Gardens Project by Meraas Development was one of the big talking points on the first day of Cityscape.
An Aldar project from the Iskandar Financial District was also one of the many detailed models kept on display at the show. Even the Falcon City of Wonders project was much talked about, and was one of the many developments on display at the show.
On the whole, about $100bn worth of new projects were launched on Monday, the first day of Cityscape. However, this news failed to ignite investor confidence, as there were growing fears about the global credit crunch and the possible overheating of the local property market.
Starting from Dh.350bn beachfront project to a kilometer-high tower, the developers at the annual Cityscape exhibition in Dubai launched the usual series of mega-developments, which has been responsible for boosting the Gulf Arab Commercial hub to international fame.
While the Dubai mortgage lender Tamweel, announced plans to launch about Dh.2bn worth of Islamic bonds in 2009, the Sorouh Real Estate of Abu Dhabi announced that all its projects have been proceeding on track.
The CEO of Sorouh, Mounir Haidar, said "The UAE is not an isolated link from the global financial system. However, UAE enjoys a different dynamics. It is an emerging economy with strong demand. Its economic policy is encouraging for people to invest in the region." The Managing Director of Cityscape, Rohan Marwaha, said that due to considerable demand from the public, the Cityscape Dubai 2008 will be open for another hour every day until 8pm.
Well into its seventh year, the Cityscape Dubai 2008 is seeing visitors flocking in, despite market uncertainties in many regions.
"Cityscape Dubai is unique, in the sense that it is not a retail event, wherein people come in and buy individual properties. It is a true investor-level, international business-to-business show," said Marwaha.
Organized by IIR Middle East, the Cityscape Dubai is a flagship event of a brand developed in Dubai, which has gained international recognition. The major strength of Cityscape is the access that it has to few of the wealthiest and most liquid property investors in the world.
Cityscape 2008 is a four-day event, likely to end on Thursday, October 9 2008.
Labels: Cityscape, Latest News
Nakheel unveils plan for a new world's tallest tower
Tuesday, October 07, 2008
Just a day prior to the launch of Cityscape Dubai 2008, the leading Dubai-based property developer Nakheel, announced plans to create a new record by building a tower that is about a kilometre in height, thereby competing with the friendly-rival Emaar Properties.The tower will form a part of Dh.140bn project, which will include the world's first inner city harbour, an official of the company said.
Emaar's Burj Dubai, which is currently the tallest tower in the world, standing high over 630 metres, is likely to touch 900 metres on completion will be ready by early 2009. The company is yet to reveal the final height of the building.
A huge model of the structure was unveiled during a launch event on Sunday night, amidst the presence of Hollywood movie stars Michael Douglas and Catherine Zeta Jones.
The Chief Executive Chris O'Donnell of the Nakheel Harbour and Tower said that it will be an ambitious and innovative tower, which will be funded through a combination of private land sales and other project financing.
Located along the intersection of Sheikh Zayed Road and the $11bn Arabian Canal, currently under construction, it will cover an area of more than 270 hectares, and will be home to a population of 55000. It will include four towers in a single structure, connected by the sky bridges.
According to Nakheel the project will take about 10 years for completion, but few of these may come up a little earlier than expected. It will have about 19000 residential apartments, ranging from affordable family homes to exclusive penthouses.
The high-speed shuttle lifts will make way for visitors to enjoy the sunset from the bottom and again from the top of the tower.
Nakheel plans to build a 1200 meter high-tower is likely to come up along the Arabian Canal.
Labels: Cityscape, Latest News, Nakheel
Cityscape Dubai 2008 unveiled at Dubai International Exhibition Centre
Monday, October 06, 2008
The world's largest business-to-business real estate development and investment event, the Cityscape Dubai, has finally opened today, with the confidence of success, despite the global economic gloom and negative forecasts being predicted for the Dubai property market.
The Managing Director of Cityscape, Rohan Marwaha, said "With the world facing market uncertainty, we enter a new era in which the Middle East developers are expected to maintain or even increase their presence across the world."
The intensity and scale of the iconic projects, is one of the most impressive property booms in modern history that has kept the UAE and Dubai in particular, on focus worldwide for most of the decade.
However, a report by the property consultants Colliers International stated that Dubai prices would drop by 16 percent during second quarter of 2008, and will remain flat until 2010, which came as bad news just prior to opening of the seventh Cityscape Dubai.
The report suggests that the Dubai market is due for a 10 to 20 percent correction, with the supply outstripping demand.
In the meanwhile, on the stock market front, the shares in Dubai's biggest publicly quoted developer, Emaar, dropped by another 12 percent.
However, irrespective of all this, Cityscape Dubai is confident about the turnout, and hopes to see about 1000 or more exhibitors over 75,000 square meters. According to the organizers of the show, this four-day event taking place at the Dubai International Convention and Exhibition Centre currently, will attract record numbers.
As a pre-exhibition booster, the leading Dubai-based developer Nakheel, on Sunday, announced plans to build a tower that is more than a kilometre in height, as a part of $38bn project, thereby keeping up the reputation of the emirate as the one with sky-high ambitions.
The Managing Director of Cityscape, Rohan Marwaha, said "With the world facing market uncertainty, we enter a new era in which the Middle East developers are expected to maintain or even increase their presence across the world."
The intensity and scale of the iconic projects, is one of the most impressive property booms in modern history that has kept the UAE and Dubai in particular, on focus worldwide for most of the decade.
However, a report by the property consultants Colliers International stated that Dubai prices would drop by 16 percent during second quarter of 2008, and will remain flat until 2010, which came as bad news just prior to opening of the seventh Cityscape Dubai.
The report suggests that the Dubai market is due for a 10 to 20 percent correction, with the supply outstripping demand.
In the meanwhile, on the stock market front, the shares in Dubai's biggest publicly quoted developer, Emaar, dropped by another 12 percent.
However, irrespective of all this, Cityscape Dubai is confident about the turnout, and hopes to see about 1000 or more exhibitors over 75,000 square meters. According to the organizers of the show, this four-day event taking place at the Dubai International Convention and Exhibition Centre currently, will attract record numbers.
As a pre-exhibition booster, the leading Dubai-based developer Nakheel, on Sunday, announced plans to build a tower that is more than a kilometre in height, as a part of $38bn project, thereby keeping up the reputation of the emirate as the one with sky-high ambitions.
Labels: Cityscape, Latest News, Property-show
World's first exclusive tower for women entrepreneurs at Business Bay
Wednesday, October 01, 2008
A leading UAE-based international property developer, Hydra Properties, has announced the completion of excavation work for Eve's Tower at Business Bay, the first exclusive tower for women entrepreneurs in the world.
Eve's Tower forms a part of the iconic Hydra Towers that consists of five unique shaped high-rise towers that forms the 'core' of largest commercial hub in the Middle East. Growing 20 storeys and facing Burj Dubai, Eve's Tower will resonate with the aspirations of businesswomen.
The design and hi-tech amenities in the region will go a long way to complement the ambitions and strategic outlook of today's women of substance, a top company official said.
The project is due for completion by 2010, and is implemented by Middle East Foundations Company. National Engineering Bureau is the Engineering Consultancy.
Dr. Sulaiman Al Fahim, CEO, Hydra Properties said that Eve's Towers at Business Bay is of topmost priority for the company. The building has been conceptualized as a tribute to the nurturing spirit of womanhood, world over.
He expressed confidence that the tower will form a new awakening and unleash the entrepreneurial talent of UAE women and contribute to overall growth of region and nation. The Construction Manager of Hydra Properties, Mahmoud Saad, revealed that Hydra Properties has successfully completed the excavation work, and is now focusing on piling work. The main contractor for the project would be announced soon.
Hydra Properties has carved a niche for itself by working on series of landmark projects across continents, starting with Hydra Waves in Mexico to Al Aqeeq Marina in Kuwait.
Labels: Business Bay, Business Tower, Latest News
Dubai realty will not see any more project delays: Land Department
Sunday, September 28, 2008
With more new regulations introduced, which holds developers accountable for delays in projects, investors in Dubai's real estate sector will no longer have to worry about frustrating project delays, reports the Gulf News.
The Law No.13 and 14, intends to increase transparency in the property market. According to officials in the Dubai Land Department, following registration and approval, all property information will be fed into the system. Hence all details of the project will be readily available and there will be no reason for delays. Law No.13 mandates all developers to pre-register their off-plan properties with the Land Department to form a full database of property transactions. Law No.14 makes it easier for Banks to obtain proof of land titles.
Both Law No. 13 and 14 were made effective last week. Law No.13 ensures that developers register all their projects before launching sales. No one can release a project unless approvals are done, and the approval must be sought from five specified government bodies including Dewa, RTA, Dubai Municipality, Land Department and RERA, said Bin Galita, the CEO of RERA.
Currently few developers are seen demanding a deposit on the unit prior to giving a purchase agreement. As per Law No.13, as soon as the deposit is paid, the sales and purchase agreement should be given immediately.
The new law also stipulates a certain acceptable increase in floorplan of a unit. On completion, however, if the floorplan is smaller than stipulated, the buyer can claim compensation.
The Law No.8 states that developers are given six months time from registration to begin construction of a project. The developers are not allowed to cancel a project without informing the Land Department.
To further increase transparency in the market, the property court will begin operations during first week of October. So far about 96 cases have been solved through mediation by the Land Department. About Dh.200bn worth of transactions are so far registered with the Land Department.
The Law No.13 and 14, intends to increase transparency in the property market. According to officials in the Dubai Land Department, following registration and approval, all property information will be fed into the system. Hence all details of the project will be readily available and there will be no reason for delays. Law No.13 mandates all developers to pre-register their off-plan properties with the Land Department to form a full database of property transactions. Law No.14 makes it easier for Banks to obtain proof of land titles.
Both Law No. 13 and 14 were made effective last week. Law No.13 ensures that developers register all their projects before launching sales. No one can release a project unless approvals are done, and the approval must be sought from five specified government bodies including Dewa, RTA, Dubai Municipality, Land Department and RERA, said Bin Galita, the CEO of RERA.
Currently few developers are seen demanding a deposit on the unit prior to giving a purchase agreement. As per Law No.13, as soon as the deposit is paid, the sales and purchase agreement should be given immediately.
The new law also stipulates a certain acceptable increase in floorplan of a unit. On completion, however, if the floorplan is smaller than stipulated, the buyer can claim compensation.
The Law No.8 states that developers are given six months time from registration to begin construction of a project. The developers are not allowed to cancel a project without informing the Land Department.
To further increase transparency in the market, the property court will begin operations during first week of October. So far about 96 cases have been solved through mediation by the Land Department. About Dh.200bn worth of transactions are so far registered with the Land Department.
Labels: Dubai Real Estate, Latest News, Property Law
Majority of investments in the GCC region flows into property sector
Wednesday, September 24, 2008
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.
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
Credit Crunch in the US will impact property sectors in Gulf
Monday, September 22, 2008
The current credit crunch being witnessed in the US, with Lehman Brothers Holdings Inc being the latest victim, is sure to have its impact across property markets across the world, particularly with banks getting more cautious to lend, commented the Chief Executive of a top real estate company in Abu Dhabi last week.
Ronald Barrot, the Chief Executive of Aldar Properties, when speaking to the media, revealed that "The ongoing crisis will influence the climate of property markets across the world. It will impact the margins and conditions for lending, and banks will get more cautious on matters associated with lending."
Property companies in the Gulf are currently enjoying an economic boom due to high oil prices that have been untouched by the global credit crunch. However, a reluctance by banks to lend in the region could hinder $2.3tn infrastructure, and thereby, real estate investments across the region.
According to Barrot, despite the probability of stringent lending criteria, Aldar would continue with its plans as usual, as the company is confident of being able to maintain business inline with their plans. However, smaller companies may face problems, Barrot said.
Aldar is eyeing real estate opportunities in the US and European sectors during the current situation of global economic recession.
Barrott said that it is too early to predict the impact that the collapse of Lehman Brothers would have on real estate market in the UAE, but "confidence levels were key."
"Markets in the region are amongst the most robust, and will continue to be interesting for people willing to invest. Our market is more insulated from the slowdown than others," said Barrot.
However, a few analysts warn that increasing borrowing costs and tightening liquidity could dampen the developer investment and buyer interest in the UAE. This advance perception of risk will limit the ability of raising funds by the Bank, and will dampen their ability to finance future real estate investment and mortgages. Higher mortgage cost may also slow buyer demand, said Robert McKinnon, a real estate analyst, who is also the Head of Equity Research at Al Mal Capital.
Property shares in the UAE have declined considerably with fears of economic slowdown gripping the region, and the numbers of police probes in real estate companies are growing.
Ronald Barrot, the Chief Executive of Aldar Properties, when speaking to the media, revealed that "The ongoing crisis will influence the climate of property markets across the world. It will impact the margins and conditions for lending, and banks will get more cautious on matters associated with lending."
Property companies in the Gulf are currently enjoying an economic boom due to high oil prices that have been untouched by the global credit crunch. However, a reluctance by banks to lend in the region could hinder $2.3tn infrastructure, and thereby, real estate investments across the region.
According to Barrot, despite the probability of stringent lending criteria, Aldar would continue with its plans as usual, as the company is confident of being able to maintain business inline with their plans. However, smaller companies may face problems, Barrot said.
Aldar is eyeing real estate opportunities in the US and European sectors during the current situation of global economic recession.
Barrott said that it is too early to predict the impact that the collapse of Lehman Brothers would have on real estate market in the UAE, but "confidence levels were key."
"Markets in the region are amongst the most robust, and will continue to be interesting for people willing to invest. Our market is more insulated from the slowdown than others," said Barrot.
However, a few analysts warn that increasing borrowing costs and tightening liquidity could dampen the developer investment and buyer interest in the UAE. This advance perception of risk will limit the ability of raising funds by the Bank, and will dampen their ability to finance future real estate investment and mortgages. Higher mortgage cost may also slow buyer demand, said Robert McKinnon, a real estate analyst, who is also the Head of Equity Research at Al Mal Capital.
Property shares in the UAE have declined considerably with fears of economic slowdown gripping the region, and the numbers of police probes in real estate companies are growing.
Labels: Latest News, Market Trends, Middle-East
First marina on Palm Jumeirah to open to public in December
Thursday, September 18, 2008
The first marina on Palm Jumeirah will be open to public in December this year, announced Island Global Yachting (IGY), the luxury marina developer and management company.
IGY has confirmed launch of an exclusive online auction site to lease berths to owners and residents of the Palm Jumeirah. Anchor Marina, the result of partnership with Nakheel, signifies one of the most prestigious projects by IGY.
The 590 berths of the marina will offer private yachts 10 to 30m in length, apart from modern infrastructural elements such as spacious concrete pontoons, together with some of the most modern technology available to boat owners, such as underwater lighting, LED illumination, wireless internet connections and concierge services.
Michael Horrigan, the CEO of IGY -Middle East and Europe, said that to reflect the prestige associated with Palm Jumeirah, great care has been taken to ensure that the quality of service and structure. The experience one gets at Anchor Marina will position it as one of the most well-appointed marinas in the world.
The guests will be offered with a choice of two clubhouses, one near Anchor Marina East and another near Anchor Marina West. The former will be designed for families, while the later will have a more sophisticated ambience with fine dining restaurants.
Horrigan announced that the Anchor Marina has been scheduled for opening this December, and that this fantastic product is likely to propel Dubai to the global forefront as a 'yachting destination of '.
"We are looking forward to a huge demand for berths and the idea of online auction site is considered as the most transparent and fair way of launching the first tier of leases," he added.
The dedicated auction site www.igyauctions .com is now developed to undertake the week long auction from 1st to 7th November, exclusively for owners and residents of the Palm Jumeirah. The owners/residents will get to lease one berth per property and the leases will be granted for a five year period. The berths for auction will be open to both East and West site of the Anchor Marina for yachts of 10-30m length.
Prospective bidders can begin registrations from 15th October and from then on they will be considered pre-qualified. Thereafter, the users can exclusively browse the site and place bids on unique selection of berths available for long-term leasing.
IGY has confirmed launch of an exclusive online auction site to lease berths to owners and residents of the Palm Jumeirah. Anchor Marina, the result of partnership with Nakheel, signifies one of the most prestigious projects by IGY.
The 590 berths of the marina will offer private yachts 10 to 30m in length, apart from modern infrastructural elements such as spacious concrete pontoons, together with some of the most modern technology available to boat owners, such as underwater lighting, LED illumination, wireless internet connections and concierge services.
Michael Horrigan, the CEO of IGY -Middle East and Europe, said that to reflect the prestige associated with Palm Jumeirah, great care has been taken to ensure that the quality of service and structure. The experience one gets at Anchor Marina will position it as one of the most well-appointed marinas in the world.
The guests will be offered with a choice of two clubhouses, one near Anchor Marina East and another near Anchor Marina West. The former will be designed for families, while the later will have a more sophisticated ambience with fine dining restaurants.
Horrigan announced that the Anchor Marina has been scheduled for opening this December, and that this fantastic product is likely to propel Dubai to the global forefront as a 'yachting destination of '.
"We are looking forward to a huge demand for berths and the idea of online auction site is considered as the most transparent and fair way of launching the first tier of leases," he added.
The dedicated auction site www.igyauctions .com is now developed to undertake the week long auction from 1st to 7th November, exclusively for owners and residents of the Palm Jumeirah. The owners/residents will get to lease one berth per property and the leases will be granted for a five year period. The berths for auction will be open to both East and West site of the Anchor Marina for yachts of 10-30m length.
Prospective bidders can begin registrations from 15th October and from then on they will be considered pre-qualified. Thereafter, the users can exclusively browse the site and place bids on unique selection of berths available for long-term leasing.
Labels: Latest News, Palm Jumeirah
Bollywood superstar, Shah Rukh Khan, to venture into UAE property sector
The Indian film industry's uncrowned King, Shah Rukh Khan is said to have ventured into the UAE realty sector as a real estate developer.
The Bollywood superstar has started conceptualizing few properties in Ras Al Kahimah emirate of the UAE, and will begin with the Shah Rukh Khan Boulevard, located in the island of Al Dana in Ras Al Khaimah.
The superstar is expected to arrive in Dubai for the forthcoming Cityscape exhibition to be held between 6th and 9th October.
Shah Rukh Khan has teamed up with Nakheel, the leading property developer in the UAE to purchase a house on the man made island of Palm Jumeirah, located off the coast of Dubai.
The property in Ras Al Khaimah will include studio, single and double bedroom apartments, designed by well-known architect Toni Ashai. The superstar, himself, is said to have associated with the development via TSA International Investments, a leading property financial consultancy in the UAE.
The Bollywood superstar has started conceptualizing few properties in Ras Al Kahimah emirate of the UAE, and will begin with the Shah Rukh Khan Boulevard, located in the island of Al Dana in Ras Al Khaimah.
The superstar is expected to arrive in Dubai for the forthcoming Cityscape exhibition to be held between 6th and 9th October.
Shah Rukh Khan has teamed up with Nakheel, the leading property developer in the UAE to purchase a house on the man made island of Palm Jumeirah, located off the coast of Dubai.
The property in Ras Al Khaimah will include studio, single and double bedroom apartments, designed by well-known architect Toni Ashai. The superstar, himself, is said to have associated with the development via TSA International Investments, a leading property financial consultancy in the UAE.
Labels: Latest News, Ras Al Khaima, UAE
Sama Dubai refuses to comment on Lagoon Project dispute
Saturday, September 13, 2008
Sama Dubai, leading real estate developer and a division of Dubai Holding, has refused to comment about the news reports that Al Arabiya, the Kuwaiti real estate firm is seeking arbitration proceedings against Sama Dubai for blocking sale of plots in the Lagoon Project to United National Bank (UNB).
The media had last week carried reports stating that Al Arabiya claimed that the deal with the Abu Dhabi-based UNB and Sama Dubai had been fixed in June.
Refusing to comment on the issue, the Executive Chairman of Sama Dubai, Farhan Farid-ooni, in his statement to The Gulf News, has been reported as saying that commenting on an investors relationship with the company, breaches the contractual agreement between the company and the investor.
Several analysts in Dubai when trying to predict the future of housing and property in Dubai during the next couple of years have predicted that a notable correction is likely.
Al Arabiya has already spent about Dh.1bn on 18 plots since 2007 at the Lagoons development in Ras Al Khor. But, last week, Sama Dubai is said to have returned payment cheques after holding them for three months, although it refused to clarify as to why the cheques were held back for so long.
Al Merri, the Chief Executive of the Lagoons Project, is under investigation, and was questioned last month.
The Kuwaiti firm, Al Arabiya, which has been listed on the Kuwait Stock Exchange, in their note to Sama Dubai, emphasized that they intend to go ahead with arbitration at the Dubai International Arbitration Center, within Dubai's Chamber of Commerce.
UNB is also considering legal proceedings, it has been said. This is another addition to the long series to cracks to appear in the fragile property sector of Dubai, which unsettles all those, interested in the market. The Police have investigated several officials of major companies such as Tamweel, Nakheel and Deyaar.
The media had last week carried reports stating that Al Arabiya claimed that the deal with the Abu Dhabi-based UNB and Sama Dubai had been fixed in June.
Refusing to comment on the issue, the Executive Chairman of Sama Dubai, Farhan Farid-ooni, in his statement to The Gulf News, has been reported as saying that commenting on an investors relationship with the company, breaches the contractual agreement between the company and the investor.
Several analysts in Dubai when trying to predict the future of housing and property in Dubai during the next couple of years have predicted that a notable correction is likely.
Al Arabiya has already spent about Dh.1bn on 18 plots since 2007 at the Lagoons development in Ras Al Khor. But, last week, Sama Dubai is said to have returned payment cheques after holding them for three months, although it refused to clarify as to why the cheques were held back for so long.
Al Merri, the Chief Executive of the Lagoons Project, is under investigation, and was questioned last month.
The Kuwaiti firm, Al Arabiya, which has been listed on the Kuwait Stock Exchange, in their note to Sama Dubai, emphasized that they intend to go ahead with arbitration at the Dubai International Arbitration Center, within Dubai's Chamber of Commerce.
UNB is also considering legal proceedings, it has been said. This is another addition to the long series to cracks to appear in the fragile property sector of Dubai, which unsettles all those, interested in the market. The Police have investigated several officials of major companies such as Tamweel, Nakheel and Deyaar.
Labels: Dubai Holdings, Lagoon, Latest News
Iconic tower Emaar Burj Dubai attains record heights
Wednesday, September 03, 2008
The iconic tower developed by Emaar, Burj Dubai, has attained record height of 688 meters.The tower, which is already the world's tallest, after surpassing KVLY-TV mast of USA, North Dakota, in April 2008, now includes 160 storeys, which is also the largest number of storeys than in any building.
On completion, Burj Dubai, will meet all four criteria listed by the council on tall buildings and urban habitat (CTBUH), which classifies the world's tallest structures. The CTBUH takes into consideration the height of buildings upto the structural top, the highest occupied floor, the top of the roof, and the tip of pinnacle, antenna, spire, mast or flag pole.
Designed by the Skidmore, Owings & Merril (SOM), Burj Dubai is constructed by Samsung Corporation of South Korea. The project and construction is managed by Turner Construction International. About 7500 professionals and skilled workers are employed on-site at Burj Dubai.
The cladding work is nearing completion, and the work has begun on the interiors, which boasts superior finishes. Only the best efficient technologies are being deployed to ensure that the iconic building remains as a standard for energy usage and water recycling.
Burj Dubai is the anchor mega-project by Emaar at the Dh.73bn Downtown Burj Dubai. Being described as the new heart of the city, the Downtown Burj Dubai is a mixed-used development comprising premium hotels, modern residences, exclusive business facilities, and shopping malls and leisure amenities.
Labels: Burj Dubai, Latest News
Deyaar's new corporate identity makes it the one-stop realty solutions provider of Dubai
Saturday, August 30, 2008
Deyaar, the fastest growing realty company in the region, has unveiled its new corporate identity, which indicates the company's strategic shift from single-tower projects to larger communities, located in master-planned developments.
The unveiling of this new corporate identity is to meet the company's vision of seeking to enhance its status as a leading complete one-stop real estate solutions provider based in Dubai. This new corporate identity also indicates the eagerness of the company to develop signature communities.
The Chairman of Deyaar, HE Nasser Bin Hassan Al-Shaikh, expressing his excitement over revealing the new corporate identity, said that this signifies the beginning of the next growth phase for Deyaar.
"The future will see Deyaar entering new markets and carrying on with further expansions marking our presence in master-planned developments to encompass broader range of real estate offerings" he added.
Deyaar has so far launched six projects during the first half of this year in Dubai. The firm has reported a net profit of 266 percent during the first half of 2008, touching Dh.448.9 million, as against Dh.122.8mn during the same period last year. Net profit for the second quarter of this year has been recorded as Dh.246.9mn, an increase of 184 percent from Dh.87mn during second quarter of 2007.
The unveiling of this new corporate identity is to meet the company's vision of seeking to enhance its status as a leading complete one-stop real estate solutions provider based in Dubai. This new corporate identity also indicates the eagerness of the company to develop signature communities.
The Chairman of Deyaar, HE Nasser Bin Hassan Al-Shaikh, expressing his excitement over revealing the new corporate identity, said that this signifies the beginning of the next growth phase for Deyaar.
"The future will see Deyaar entering new markets and carrying on with further expansions marking our presence in master-planned developments to encompass broader range of real estate offerings" he added.
Deyaar has so far launched six projects during the first half of this year in Dubai. The firm has reported a net profit of 266 percent during the first half of 2008, touching Dh.448.9 million, as against Dh.122.8mn during the same period last year. Net profit for the second quarter of this year has been recorded as Dh.246.9mn, an increase of 184 percent from Dh.87mn during second quarter of 2007.
Labels: Deyaar, Dubai Real Estate, Latest News
Master developers deny residency visa guarantee clause in their contracts
Thursday, August 28, 2008
Few master developers in Dubai have been accused of removing a particular clause from their contracts, which guarantees investors with residency visas, said a report.
Emaar Properties has sent notices to sub-developers to put on hold the processing of residency visas, until further notice, revealed a developer when speaking to the media.
"A particular clause in our previous contracts carried an assurance that master developers will guarantee residence visa. The clause is now removed," said one developer.
Foreigners are less likely to purchase properties in Dubai, if they are not automatically entitled to long-term residency rights. Expatriates in neighbouring countries like Pakistan, Iran and Lebanon who faced political instability had been lured to Dubai, mainly on the assumption that owning a property would entitle them to long-term visas, ING said.
Being the commercial hub of the Arab world, Dubai saw property boom since 2002 when the government had permitted foreigners to invest in Dubai properties.
Developer, Union Properties, for instance, said that it does not assure property buyers with residency visas, as it is the responsibility of the Department of Naturalization and Residency to grant visas.
The Chief Executive of Dubai Properties, Mohamed Binbrek, for instance, was quoted as saying that it "never assured any visa and was just acting as a facilitator".
Emaar Properties has sent notices to sub-developers to put on hold the processing of residency visas, until further notice, revealed a developer when speaking to the media.
"A particular clause in our previous contracts carried an assurance that master developers will guarantee residence visa. The clause is now removed," said one developer.
Foreigners are less likely to purchase properties in Dubai, if they are not automatically entitled to long-term residency rights. Expatriates in neighbouring countries like Pakistan, Iran and Lebanon who faced political instability had been lured to Dubai, mainly on the assumption that owning a property would entitle them to long-term visas, ING said.
Being the commercial hub of the Arab world, Dubai saw property boom since 2002 when the government had permitted foreigners to invest in Dubai properties.
Developer, Union Properties, for instance, said that it does not assure property buyers with residency visas, as it is the responsibility of the Department of Naturalization and Residency to grant visas.
The Chief Executive of Dubai Properties, Mohamed Binbrek, for instance, was quoted as saying that it "never assured any visa and was just acting as a facilitator".
Labels: Dubai Real Estate, Latest News
Dubai issues new regulation to check speculation in the market
Dubai has passed on a new regulation to regulate the sale of real estate that are under construction so has to put an end to speculation which has been the cause behind the skyrocketing property prices in the emirate.
As per the law issued this week, sale of off-plan properties in Dubai need to be registered with the department prior to which, they cannot be resold, said Marwan bin Ghalita, Chief Executive, Dubai Real Estate Regulatory Authority (RERA).
The Standard Chartered Bank, last month, has warned that the property sector in Dubai showed signs of overheating, as speculators who have been betting on quick returns inflate prices of units that are still under construction.
Speaking about the new law, Bin Ghalita expressed his confidence that it would help curb speculation. In Dubai, laws are being introduced step by step. Further, everything is transparent as it is with the Land Department.
The property prices in Dubai have surged 79 percent since 2007, said the Morgan Stanley report, earlier this month.
Demand for properties in Dubai, the home to tallest tower in the world and three man-made islands have been increasing ever-since the government permitted foreigners to invest in properties.
The off-plan law follows the mortgage law which was passed last week, aimed to regulate the booming property sector of Dubai.
It will also prevent master and sub-developers from charging transfer fee on off-plan sales, Bin Ghalita added.
The Developers, however, can be paid with an administration fee of Dh.1000 to Dh.3000 for every transaction, once it has been approved by the Land Department.
The property prices in Dubai is likely to increase by 35 percent this year, and by another 8.5 percent in 2009, and then Dubai takes measures to weed out short-term speculators.
As per the law issued this week, sale of off-plan properties in Dubai need to be registered with the department prior to which, they cannot be resold, said Marwan bin Ghalita, Chief Executive, Dubai Real Estate Regulatory Authority (RERA).
The Standard Chartered Bank, last month, has warned that the property sector in Dubai showed signs of overheating, as speculators who have been betting on quick returns inflate prices of units that are still under construction.
Speaking about the new law, Bin Ghalita expressed his confidence that it would help curb speculation. In Dubai, laws are being introduced step by step. Further, everything is transparent as it is with the Land Department.
The property prices in Dubai have surged 79 percent since 2007, said the Morgan Stanley report, earlier this month.
Demand for properties in Dubai, the home to tallest tower in the world and three man-made islands have been increasing ever-since the government permitted foreigners to invest in properties.
The off-plan law follows the mortgage law which was passed last week, aimed to regulate the booming property sector of Dubai.
It will also prevent master and sub-developers from charging transfer fee on off-plan sales, Bin Ghalita added.
The Developers, however, can be paid with an administration fee of Dh.1000 to Dh.3000 for every transaction, once it has been approved by the Land Department.
The property prices in Dubai is likely to increase by 35 percent this year, and by another 8.5 percent in 2009, and then Dubai takes measures to weed out short-term speculators.
Labels: Latest News, Property Law
Schon assures complete refund to Dubai Lagoon investors
Sunday, August 24, 2008
Schon Properties, the developer of Dh.3bn Dubai Lagoons Project, has assured complete refunds to all investors who have bought properties in the project, which had been scheduled for completion by December 2007.
This refund policy has been extended by Schon, as an act of goodwill, following some initial confusion among investors with regards to the phases of the project and its revised dates of completion, the company revealed yesterday.
The delay in completion of Dubai Lagoon project has been due to the unanticipated alterations in civic and transportation infrastructure, which in turn, have resulted in delayed construction and re-scheduling issues have cropped up, the company said.
The Co-Chairman of Schon Properties, Nasser Hussain, speaking to the media, said " Schon properties completely supports and applauds the efforts made by RTA towards improving the infrastructure in Dubai, and we have altered our projects to suit the mandatory infrastructure requirements imposed subsequent to the launch of Dubai Lagoon."
Schon has been holding talks with RERA (Real Estate Regulatory Authority) to clarify the situation and arrive at a fair solution for all parties involved. The revised refund policy announced by Schon, has been approved by the Board of Directors of the company, during a Board meeting held this week, to accommodate investors and exhibit good faith.
Investors who have purchased units bearing completion date of December 2007, can claim complete refund, and can apply for this prior to 15th September 2008.
RERA had issued a press release last week which said that the project has not been cancelled and requested continued involvement and monitoring of construction works.
Schon also assured that the agreement with the original contractors, Powerline Gulf, has been re-negotiated to include the first two zones and construction would resume during the coming weeks.
The first zone is due for completion within 13 months, while the second zone is set for completion within 18 months as on 28th July. Negotiations are on with another leading contractor to handle remaining zones, currently being finalized.
This refund policy has been extended by Schon, as an act of goodwill, following some initial confusion among investors with regards to the phases of the project and its revised dates of completion, the company revealed yesterday.
The delay in completion of Dubai Lagoon project has been due to the unanticipated alterations in civic and transportation infrastructure, which in turn, have resulted in delayed construction and re-scheduling issues have cropped up, the company said.
The Co-Chairman of Schon Properties, Nasser Hussain, speaking to the media, said " Schon properties completely supports and applauds the efforts made by RTA towards improving the infrastructure in Dubai, and we have altered our projects to suit the mandatory infrastructure requirements imposed subsequent to the launch of Dubai Lagoon."
Schon has been holding talks with RERA (Real Estate Regulatory Authority) to clarify the situation and arrive at a fair solution for all parties involved. The revised refund policy announced by Schon, has been approved by the Board of Directors of the company, during a Board meeting held this week, to accommodate investors and exhibit good faith.
Investors who have purchased units bearing completion date of December 2007, can claim complete refund, and can apply for this prior to 15th September 2008.
RERA had issued a press release last week which said that the project has not been cancelled and requested continued involvement and monitoring of construction works.
Schon also assured that the agreement with the original contractors, Powerline Gulf, has been re-negotiated to include the first two zones and construction would resume during the coming weeks.
The first zone is due for completion within 13 months, while the second zone is set for completion within 18 months as on 28th July. Negotiations are on with another leading contractor to handle remaining zones, currently being finalized.
Labels: Lagoon, Latest News, Schon-Properties
New mortgage law in Dubai
Thursday, August 21, 2008
Dubai has issued a new mortgage law, so as to regulate the booming property sector of th emirate, announced RERA (Real Estate Regulatory Authority).As per 35-article decree, issued by Sheikh Mohammed bin Rashid Al-Maktoum, the Vice-President of UAE and Ruler of Dubai, the new law regulates the mortgage process so as to protect the rights of borrowers and lenders, while also enhancing transparency.
The law is effective, after 60 days of its publication in the official gazette. The law states that mortgage contracts can be registered with the land department, on specifying the size of loan, the repayment period, and the value of property to which the loan is linked.
The new law basically covers the mortgage procedures in Dubai. All property purchases happening offplan, for instance, and all the financing must be registered with the land department, said Marwan Ahmed bin Ghalita, the Chief of RERA.
The mortgages on properties in Dubai, should henceforth be sold by registered financial institutions and be insured.
The borrower and lender will have to present complete financial documents during the registration of the mortgage.
The government has granted exemption on properties given to nationals by the government. This gives better confidence to the lender, and more security for banks. Ghalita revealed that land department and banks are currently working out mortgage rates independently from central banks.
Being home to flamboyant developments such as palm-shaped islands, the tax-free Dubai began the Gulf property boom in 2002, by welcoming foreigners to invest in Dubai properties. The nascent mortgage business in Dubai has been growing ever-since, with home loans increasing by 55 percent in the year to March.
According to a statement from Morgan Stanley, the property prices in Dubai, have surged 79 percent since 2007, although a 10 percent decline in prices is expected by 2010.
The announcement of this new mortgage regulation coincides with the crackdown by Dubai government on corruption, with major executives in realty and financial firms facing investigations.
Labels: Dubai Real Estate, Latest News, Mortgages
Morgan Stanley report positive about MENA property sector
Saturday, August 09, 2008
Morgan Stanley, in their coverage on twelve property stocks in MENA region (Middle East and North Africa), has identified Emaar, Aldar, Qatar Real Estate and Palm Hills, as top pick for investors seeking to take advantage of the thriving real estate sector in the region.
Mai Attia, a Morgan Stanley analyst, in her report, titled "Winners and Losers in MENA Property", indicated a positive note on MENA property market, and said that a growth, driven by Qatar and Abu Dhabi, is likely to happen, with the market remaining undersupplied until 2012.
The report states that for the first time, a proper assessment of the Net Asset Value (NAV) has been considered in the region for pricing of property stocks. Till date, the analysts had set price targets for property companies at 100 percent of Discount Cash Flow (DCF), which is not so accurate, when compared to the NAV approach while pricing property stocks.
The report said that the main beneficiaries in the booming property market in the region will be Emaar, which will benefit from the high growth and low risk of its diversified business model, followed by Aldar, the pioneer in Abu Dhabi market, which will benefit from escalation in property prices and increase in demands. The Qatar Real Estate, a leader in booming industrial property segment in Qatar, and Palm Hills, an Egyptian company, which has diversified landbank, high profitability, partnerships and exposure to the Saudi market.
Morgan Stanley is a leading global financial services company, offering services in investment banking, investment management, securities and wealth management services.
The employees serve clients worldwide including governments, corporations, individuals and institutions from about 600 offices in 32 countries.
Mai Attia, a Morgan Stanley analyst, in her report, titled "Winners and Losers in MENA Property", indicated a positive note on MENA property market, and said that a growth, driven by Qatar and Abu Dhabi, is likely to happen, with the market remaining undersupplied until 2012.
The report states that for the first time, a proper assessment of the Net Asset Value (NAV) has been considered in the region for pricing of property stocks. Till date, the analysts had set price targets for property companies at 100 percent of Discount Cash Flow (DCF), which is not so accurate, when compared to the NAV approach while pricing property stocks.
The report said that the main beneficiaries in the booming property market in the region will be Emaar, which will benefit from the high growth and low risk of its diversified business model, followed by Aldar, the pioneer in Abu Dhabi market, which will benefit from escalation in property prices and increase in demands. The Qatar Real Estate, a leader in booming industrial property segment in Qatar, and Palm Hills, an Egyptian company, which has diversified landbank, high profitability, partnerships and exposure to the Saudi market.
Morgan Stanley is a leading global financial services company, offering services in investment banking, investment management, securities and wealth management services.
The employees serve clients worldwide including governments, corporations, individuals and institutions from about 600 offices in 32 countries.
Labels: Latest News, Market Trends, Middle-East
Now affordable insurance for tenants/homeowners in Dubai
Monday, August 04, 2008
Now tenants and homeowners in Dubai can relax, as they do not have to spend hefty sums for safety and security. A deal between Better Homes, leading property consultancy group, and RSA, the insurance giants have brought in affordable insurance in Dubai for tenants and homeowners, for as low as Dh.190 to Dh.50,000 coverage.
Better Homes said that insurance levels for UAE were as low as five percent during the past, due to Dubai's transient nature and low crime levels, which resulted in low levels of insurance purchases.
Earlier people visiting Dubai, were short-term visitors and they lived in rented accommodation and never invested heavily in the contents, and hence felt that insurance was not a necessity, said Billy Rautenbach, Director of Operations, Better Homes.
However, with more expatriates choosing to make Dubai their permanent home, the demand for insurance services grew. Recent flooding, fires and incidents have further strengthened the need for insurance coverage.
Rautenbach explained that it is important for property owners and tenants to be covered by adequate insurance.
Rautenbach said that his company felt that most people have trouble in accessing a first-class product, and hence they have come up with a product that can directly be offered at the time of purchase or lease, apart from saving 20 to 30 percent against market rates, in addition to vast coverage.
Together with RSA, Better Homes have come up with a range of packages with rates that aptly fit the client requirements. Standard rates have been developed for content values. Clients with larger properties or additional contents, would customize the quote, said Julie Deighton, a spokeswoman for Better Homes.
The best part about the entire thing is that size of the property is not taken into consideration, as the client can select the amount of coverage that suits them. The policy is being offered through a streamlined process during which the clients will receive a complimentary quote depending on their property requirement, which is far free from the elaborate paperwork.
Here's a gist of Premium Value for coverage:
Better Homes said that insurance levels for UAE were as low as five percent during the past, due to Dubai's transient nature and low crime levels, which resulted in low levels of insurance purchases.
Earlier people visiting Dubai, were short-term visitors and they lived in rented accommodation and never invested heavily in the contents, and hence felt that insurance was not a necessity, said Billy Rautenbach, Director of Operations, Better Homes.
However, with more expatriates choosing to make Dubai their permanent home, the demand for insurance services grew. Recent flooding, fires and incidents have further strengthened the need for insurance coverage.
Rautenbach explained that it is important for property owners and tenants to be covered by adequate insurance.
Rautenbach said that his company felt that most people have trouble in accessing a first-class product, and hence they have come up with a product that can directly be offered at the time of purchase or lease, apart from saving 20 to 30 percent against market rates, in addition to vast coverage.
The cover is inclusive of accidental damage due to fire and floods, and accommodates spaces from bedrooms to villas with prices beginning at Dh.190 per annum, which is one of the cheapest in the market.
Together with RSA, Better Homes have come up with a range of packages with rates that aptly fit the client requirements. Standard rates have been developed for content values. Clients with larger properties or additional contents, would customize the quote, said Julie Deighton, a spokeswoman for Better Homes.
The best part about the entire thing is that size of the property is not taken into consideration, as the client can select the amount of coverage that suits them. The policy is being offered through a streamlined process during which the clients will receive a complimentary quote depending on their property requirement, which is far free from the elaborate paperwork.
Here's a gist of Premium Value for coverage:
- For a content coverage of Dh50,000, the premium is Dh190
- For a content coverage of Dh100,000, the premium is Dh300
- For a content coverage of Dh250,000, the premium is Dh700
- For a content coverage of Dh500,000, the premium is Dh1,500.
Labels: Dubai Real Estate, Latest News
Dubai's retail world, much in demand, despite high rents
Saturday, August 02, 2008
According to latest research, the highest rental rates in Dubai are not in residential sectors, as is often believed, but in the retail world.
The retail rent rates in Dubai, have not risen significantly ever-since the first quarter of 2008, with high-end retail locations such as BurJuman and Mall of Emirates fixing rents in the range of Dh.400 to Dh.600 per square foot.
Average retail rent rates are fixed at Dh.600 per square foot in Dubai, and Dh.400 per square foot in Abu Dhabi.
According to data from Jones Lang LaSalle, average rent for convenience stores and neighborhood centers is Dh.200 to Dh.250 per square foot. But in the case of regional and super regional centers, the rate goes up to Dh.400 to Dh.550 per square foot.
But the startling fact is that despite such high rentals, the occupancy rates continues to remain at more than 90 percent, as people are ready to pay heavily for the prized position, in the gleaming retail industry of Dubai.
A report by Colliers International has shown that retail occupancy rates are as high as 98 percent or 100 percent in 'destination' shopping malls, with wealthier Emiratis and expatriates having the means to shop, with the new supply of shopping malls.
According to a commercial review by Better Homes, an international property consultancy group, retail has contributed immensely in increasing the overall sales registration activity during the second quarter of 2008 by 234 percent, as against that during the same period last year.
The review by Dubai Land Department indicates that the total real estate transactions surged 204 percent year after year, from Dh.6.8bn in 2007 to Dh.13.9bn in 2008.
The report by Better Homes explains that the current retail supply of gross leasable area (GLA) in Dubai is 1.6mn square meters. The current demand for GLA is 118,000 square meters, while the intended retail GLA supply towards end of 2008 is just more than 2mn square meters.
In the opinion of Craig Plumb, the Head of research - Mena region at Jones Lang La Salle, the supply of retail floor space per person, at present, is comparatively low in UAE, when compared to more mature markets. Therefore, the market can accommodate the large amount of additional supplies that are currently under development.
Labels: Latest News, Shopping Mall
Dubai ranked as most transparent realty market in the region
Friday, August 01, 2008
With more investors across the world opting to shift their focus on markets least hit by credit crunch, and thereby seeking to enter Gulf markets, the volume of property sales in Dubai is set to rise, confirms a leading global property investment expert.
Dubai has registered the greatest improvement in real estate transparency globally during the past two years, recording a surge of 55.2 percent in property deals, and is set to hit Dh.717bn in 2008 as against Dh.462bn in 2007.
According to Managing Director of Jones Lang LaSalle (JLL), Blair Hagkull, a leading real estate investment and advisory firm, Dubai, with credit crisis hitting real estate markets of Europe and US, investors are now targeting Gulf markets, particularly Dubai.
Speaking to reports during the launch of a new study on "Real Estate Transparency Report 2008" for MENA region, he revealed that Dubai has been ranked as the most transparent realty market in the region. Dubai has been ranked a transparency index exceeding other budding economies such as the BRIC (Brazil, Russia, India, China) markets.
JLL is an investment adviser with a track-record of $200billion worth projects in MENA. It has 180 offices worldwide, and has worked in 25 countries in the MENA region. The JLL Transparency Index covers 82 markets, and is rated against five transparency tiers. About 33 questions are designed to measure transparency objectively put into each market.
Transparent markets are those that are open and easier to carry on businesses with transparency maintained in transaction processes, market fundamentals, performance measurements, and the regulatory and legal environment.
Dubai has registered the greatest improvement in real estate transparency globally during the past two years, recording a surge of 55.2 percent in property deals, and is set to hit Dh.717bn in 2008 as against Dh.462bn in 2007.
According to Managing Director of Jones Lang LaSalle (JLL), Blair Hagkull, a leading real estate investment and advisory firm, Dubai, with credit crisis hitting real estate markets of Europe and US, investors are now targeting Gulf markets, particularly Dubai.
Speaking to reports during the launch of a new study on "Real Estate Transparency Report 2008" for MENA region, he revealed that Dubai has been ranked as the most transparent realty market in the region. Dubai has been ranked a transparency index exceeding other budding economies such as the BRIC (Brazil, Russia, India, China) markets.
JLL is an investment adviser with a track-record of $200billion worth projects in MENA. It has 180 offices worldwide, and has worked in 25 countries in the MENA region. The JLL Transparency Index covers 82 markets, and is rated against five transparency tiers. About 33 questions are designed to measure transparency objectively put into each market.
Transparent markets are those that are open and easier to carry on businesses with transparency maintained in transaction processes, market fundamentals, performance measurements, and the regulatory and legal environment.
Labels: Dubai Real Estate, Latest News
Investors prefer buying properties than renting them
Thursday, July 31, 2008
An increasing tendency has been noticed among UAE residents to purchase properties rather than opt for rentals, as mounting rental prices are compelling them to seek an alternative housing accommodation, reveals Chris Dommet, the CEO of John Charcoal, Dubai, a leading independent mortgage advisor firm.
Dommett explains that a steady increase has been noticed in rental prices of UAE during the last few years, and purchasing a property seems to be an attractive option to expats who are seeking to build equity from the considerable financial investments that they are making back at their home countries.
Gone are the days when expatriates allowed their hard earned income to vanish in the form of rent. Now the Dubai's expat community is more aware about the local mortgage market and home lending services too, have become more accessible.
It has been considered that the most important financial advantage of purchasing a home is building equity. The option of going ahead for a fixed monthly payment on a long term is also considered a major incentive, with the rents in Dubai increasing year after year.
The large volume and variety of mortgage options in the market, and the low interest rates, have been appealing to a large number of expats, who are eager to tap the booming real estate industry in the region and also are looking forward to buy a property of their own.
Taking the price of the property, and its approximate return in consideration, majority of investors are finding the purchase option more economical, when compared to the rents they are paying.
But, despite the advantages, there are still several expatriates who are still willing to pay exorbitant rent rates, either due to lack of proper understanding of local real estate market, or due to slight hesitation in getting themselves involved in the property buying process of the supposedly daunting UAE market.
Dommett explains that a steady increase has been noticed in rental prices of UAE during the last few years, and purchasing a property seems to be an attractive option to expats who are seeking to build equity from the considerable financial investments that they are making back at their home countries.
Gone are the days when expatriates allowed their hard earned income to vanish in the form of rent. Now the Dubai's expat community is more aware about the local mortgage market and home lending services too, have become more accessible.
It has been considered that the most important financial advantage of purchasing a home is building equity. The option of going ahead for a fixed monthly payment on a long term is also considered a major incentive, with the rents in Dubai increasing year after year.
The large volume and variety of mortgage options in the market, and the low interest rates, have been appealing to a large number of expats, who are eager to tap the booming real estate industry in the region and also are looking forward to buy a property of their own.
Taking the price of the property, and its approximate return in consideration, majority of investors are finding the purchase option more economical, when compared to the rents they are paying.
But, despite the advantages, there are still several expatriates who are still willing to pay exorbitant rent rates, either due to lack of proper understanding of local real estate market, or due to slight hesitation in getting themselves involved in the property buying process of the supposedly daunting UAE market.
Labels: Latest News, Market Trends, Property Prices, UAE
Tourism growth bring prosperity to Dubai property sector
Thursday, July 24, 2008
Real estate in Dubai continues to bring in prosperity to property sector recording double-digit annual revenues, the report said.
The property boom in Dubai is being driven by factors such as high population growth rates, increasing demand from expatriates, and strong regional liquidity.
Dubai is fast emerging as a real estate, financial and tourism hub, as well as an oasis of stability in a troubled region, reveals report. Taking into account the supply-demand imbalance and prices in real estate sector, it looks like the Dubai property sector will remain elevated during the next couple of years, and thereafter, the bulk of properties that are currently under construction will near completion.
The property sector continues to remain attractively priced, offering good return on investments. However, with the ambitious growth strategy of the emirate, there is a risk associated with continued heavy supply that could weigh on technical, the report states.
The government is also eager to double annual passenger movement from 8million to 15million by the year 2015. With the corporate being closely monitored by the sovereign, they operate as commercial entities and are not subjected to interference in their operations, says the report.
As for the potential risks, the report states that although realty sector slowdown has been long expected, it is yet to happen. But, once the new supply hits the market during next couple of years, a slowdown is likely within the sector, and the focus would then be shifted to other developing stories in the region.
The rapid pace of development is placing increased strain on the price and availability of construction materials and supply of labour, all of which could lead to considerable growth barrier.
The property boom in Dubai is being driven by factors such as high population growth rates, increasing demand from expatriates, and strong regional liquidity.
According to a report by Lehman Brothers on "Dubai Inc: Credit Overview and Relative Valuation", tourism accounts for 30 percent of Dubai's GDP, with no sign of slow down being seen in near future in the tourism-oriented realty developments and increased airline services.
Dubai is fast emerging as a real estate, financial and tourism hub, as well as an oasis of stability in a troubled region, reveals report. Taking into account the supply-demand imbalance and prices in real estate sector, it looks like the Dubai property sector will remain elevated during the next couple of years, and thereafter, the bulk of properties that are currently under construction will near completion.
The property sector continues to remain attractively priced, offering good return on investments. However, with the ambitious growth strategy of the emirate, there is a risk associated with continued heavy supply that could weigh on technical, the report states.
The government is also eager to double annual passenger movement from 8million to 15million by the year 2015. With the corporate being closely monitored by the sovereign, they operate as commercial entities and are not subjected to interference in their operations, says the report.
As for the potential risks, the report states that although realty sector slowdown has been long expected, it is yet to happen. But, once the new supply hits the market during next couple of years, a slowdown is likely within the sector, and the focus would then be shifted to other developing stories in the region.
The rapid pace of development is placing increased strain on the price and availability of construction materials and supply of labour, all of which could lead to considerable growth barrier.
Labels: Dubai Real Estate, Latest News, Market Trends
Ras Al Khaimah plans to offer long-term residence visas to investors
Tuesday, July 22, 2008
The government in Ras Al Khaimah plans to offer long term residence visas (more than three-year residency permits) to property buyers, revealed a top government official.
The Ras Al Khaimah Government is making an effort to facilitate long term residence visas to property buyers, announced Dr. Khater Massasad, the Chief Executive of RAKIA (Ras Al Khaimah Investment Authority).
Dr. Khater said that he hopes that this will happen in future, and boost foreign investments in property sector.
At present, UAE grants a three-year renewable employment and residence visas to expat workers and professionals in private sectors, sponsored by their employers and spouses, while the public sector employees are granted a five-year visa.
The discussions are on regarding issuance of long-term residence and business visas that are likely to help expatriate investors and businessmen in boosting investor confidence. This initiative, if successful, will boost investments further. Currently property investors are granted three-year renewable residency permits, facilitated through offshore companies and developers.
There is no federal law that guarantees residence visas to property owners, and it is being facilitated through companies. The companies sponsor the residence visas of investors. This enables investors to get their visas, while also being able to live in these properties.
The Ras Al Khaimah Government is making an effort to facilitate long term residence visas to property buyers, announced Dr. Khater Massasad, the Chief Executive of RAKIA (Ras Al Khaimah Investment Authority).
Dr. Khater said that he hopes that this will happen in future, and boost foreign investments in property sector.
At present, UAE grants a three-year renewable employment and residence visas to expat workers and professionals in private sectors, sponsored by their employers and spouses, while the public sector employees are granted a five-year visa.
The discussions are on regarding issuance of long-term residence and business visas that are likely to help expatriate investors and businessmen in boosting investor confidence. This initiative, if successful, will boost investments further. Currently property investors are granted three-year renewable residency permits, facilitated through offshore companies and developers.
There is no federal law that guarantees residence visas to property owners, and it is being facilitated through companies. The companies sponsor the residence visas of investors. This enables investors to get their visas, while also being able to live in these properties.
Labels: Latest News, Property Law, Ras Al Khaima
Abu Dhabi housing rates higher than in Dubai for first time ever
Friday, July 18, 2008
The housing and rental rates in Abu Dhabi has surpassed Dubai for the first time, says recent industry reports.
According to latest figures released by HSBC, the average rent per square meter in Abu Dhabi was $272 per square meter during the end of 2007, and is $430 per square meter during second quarter of 2008, marking a growth of 58 percent.
During this period, the average rent in Dubai was $343 per square meter during the last quarter of 2007, and $420 per square meter during the second quarter of 2008, marking a 22 percent growth.
Even for purchasing a house, Abu Dhabi witnessed 61 percent growth in house prices, between the last quarters of 2007 and second quarter of 2008, while Dubai saw an increase of 37 percent during the same period.
According to an analyst at HSBC, the main reason behind such a scenario is that the market in Dubai is much tighter, and delivery delays are more apparent. Abu Dhabi is at a premium, as affordability is higher.
The report states that although delays are happening in both Abu Dhabi and Dubai markets, Dubai is experiencing rapid growth, and basic infrastructure such as electricity, water and sewerage systems are unable to match the pace of development.
About 160,000 units were expected to hit the Abu Dhabi housing market by the year 2010. However, at present, Colliers International estimates that only 31,000 units will be available, due to problem with delays.
In another recent Fitch report, Dubai has been warned of a possible oversupply situation with a major influx of housing units into the market towards the year 2009.
However, the report by HSBC predicts that most units would be delivered by the year 2011. The scarcity of housing in Abu Dhabi has prompted people to shift to Dubai, and commute to Abu Dhabi. This may prevent a possible oversupply situation in Dubai.
Analaysts feel that the housing shortage in Dubai too, will remain so, until 2010, when the bulk of supplies hit the market. However, even an oversupply in 2010 cannot be confirmed, due to the continuous ongoing delays in the market.
The report also states that prices in UAE, although on the rise, are still affordable as per international standards. At present the plot prices are an average of Dh.7000 per square meter, and towards end of the year, a residential property sales price of Dh.28000 is expected, which suggests that price growth rate will slow down since the beginning of the year.
According to latest figures released by HSBC, the average rent per square meter in Abu Dhabi was $272 per square meter during the end of 2007, and is $430 per square meter during second quarter of 2008, marking a growth of 58 percent.
During this period, the average rent in Dubai was $343 per square meter during the last quarter of 2007, and $420 per square meter during the second quarter of 2008, marking a 22 percent growth.
Even for purchasing a house, Abu Dhabi witnessed 61 percent growth in house prices, between the last quarters of 2007 and second quarter of 2008, while Dubai saw an increase of 37 percent during the same period.
According to an analyst at HSBC, the main reason behind such a scenario is that the market in Dubai is much tighter, and delivery delays are more apparent. Abu Dhabi is at a premium, as affordability is higher.
The report states that although delays are happening in both Abu Dhabi and Dubai markets, Dubai is experiencing rapid growth, and basic infrastructure such as electricity, water and sewerage systems are unable to match the pace of development.
About 160,000 units were expected to hit the Abu Dhabi housing market by the year 2010. However, at present, Colliers International estimates that only 31,000 units will be available, due to problem with delays.
In another recent Fitch report, Dubai has been warned of a possible oversupply situation with a major influx of housing units into the market towards the year 2009.
However, the report by HSBC predicts that most units would be delivered by the year 2011. The scarcity of housing in Abu Dhabi has prompted people to shift to Dubai, and commute to Abu Dhabi. This may prevent a possible oversupply situation in Dubai.
Analaysts feel that the housing shortage in Dubai too, will remain so, until 2010, when the bulk of supplies hit the market. However, even an oversupply in 2010 cannot be confirmed, due to the continuous ongoing delays in the market.
The report also states that prices in UAE, although on the rise, are still affordable as per international standards. At present the plot prices are an average of Dh.7000 per square meter, and towards end of the year, a residential property sales price of Dh.28000 is expected, which suggests that price growth rate will slow down since the beginning of the year.
Labels: Abu Dhabi, Latest News, UAE
UAE mortgage market set for a boom
Thursday, July 17, 2008
The construction boom in UAE has resulted in major surge in its mortgage market, with investors being able to take advantage of various new incentives on the offer to purchase real estate.
According to a new survey, the mortgage market in UAE is currently worth Dh.20bn, and is likely to triple to Dh.64bn during the next three years.
Mortgage advisors are of the opinion that Investors are increasingly relying on mortgages to purchase property, with more than 71 percent of UAE investors requiring mortgage to finance their property purchase. This indicates that there exists considerable demand within local market, which shows no sign of slowing down.
This huge demand could be triggered by various factors, such as, increasingly maturing local mortgage market, with both seasoned and first-time investors taking advantage of attractive mortgage incentives to purchase real estate.
Increasing prices of properties are influencing the investments of property buyers, and low interest rates are continuing to fuel the demand. These offers, together with the introduction of new laws, pertaining to property ownership has enabled the UAE mortgage market to truly thrive.
Earlier, the investors had to either utilize their own funds or release equity on other properties in their home country, due to limited availability of local finance. However, the landscape of UAE mortgage market has seen a tremendous change with several new lenders, including the financial institutions and banks, entering the market to take advantage of the rising demand and work with a wide range of developers.
The survey report states that the UAE mortgage market is getting more complex, with mortgage approvals being one of the major reasons behind delays in purchase of projects by investors. Hence, despite several mortgage options being available to property buyers, obtaining mortgage can still be a major responsibility. A good mortgage broker, apart from identifying the best deal, will also have to facilitate the entire process. The property buyers watch for reputation of the lender, the pace at which the mortgage can be processed and other factors, apart from rate alone. The survey states that speed is everything in UAE property market.
The Survey was carried out last year by John Charcoal Dubai, an independent mortgage franchise operation. The Company works in close co-operation with leading financial institutions, real estate agents, and property developers to bring in speed and transparency to property buying process in the UAE.
According to a new survey, the mortgage market in UAE is currently worth Dh.20bn, and is likely to triple to Dh.64bn during the next three years.
Mortgage advisors are of the opinion that Investors are increasingly relying on mortgages to purchase property, with more than 71 percent of UAE investors requiring mortgage to finance their property purchase. This indicates that there exists considerable demand within local market, which shows no sign of slowing down.
This huge demand could be triggered by various factors, such as, increasingly maturing local mortgage market, with both seasoned and first-time investors taking advantage of attractive mortgage incentives to purchase real estate.
Increasing prices of properties are influencing the investments of property buyers, and low interest rates are continuing to fuel the demand. These offers, together with the introduction of new laws, pertaining to property ownership has enabled the UAE mortgage market to truly thrive.
Earlier, the investors had to either utilize their own funds or release equity on other properties in their home country, due to limited availability of local finance. However, the landscape of UAE mortgage market has seen a tremendous change with several new lenders, including the financial institutions and banks, entering the market to take advantage of the rising demand and work with a wide range of developers.
The survey report states that the UAE mortgage market is getting more complex, with mortgage approvals being one of the major reasons behind delays in purchase of projects by investors. Hence, despite several mortgage options being available to property buyers, obtaining mortgage can still be a major responsibility. A good mortgage broker, apart from identifying the best deal, will also have to facilitate the entire process. The property buyers watch for reputation of the lender, the pace at which the mortgage can be processed and other factors, apart from rate alone. The survey states that speed is everything in UAE property market.
The Survey was carried out last year by John Charcoal Dubai, an independent mortgage franchise operation. The Company works in close co-operation with leading financial institutions, real estate agents, and property developers to bring in speed and transparency to property buying process in the UAE.
Labels: Latest News, Mortgages, UAE
Dubai property sector fears an oversupply
Saturday, July 12, 2008
The Dubai property sector could take a backseat, if the surplus developments likely to come to the market next year, outstrips demand, and if the government steps back on its promise to issue residency visas.
In the opinion of Matthew Green, the Research Director at Cluttons, UAE, if the government withdrew its promise to grant residency visas for freehold purchasers and their families, it would shun away several hundreds of expatriate buyers, who consider Dubai market to be safer against troubles than in their home countries.
These comments were made following the release of report by Fitch, the ratings firm, which identifies oversupply, and sustaining of foreign demand, as major challenges that Dubai realty sector is likely to witness in near future.
According to the report, if the supply does not surpass demand, prices of properties will decline, reducing revenues further, and this would leave a negative impact on credit profiles of developers.
There are high chances of late deliveries and even project cancellation, due to logistical constraints, that would ultimately result in better match between demand and supply, it is said.
According to analysts, although supply is fast catching up with demand, oversupply is not considered as major threat to the market. As far as supplies are concerned, there are two factors that affect supply -one is delays and the other is construction constraint. However, risks are expected to a certain extent, as supply is catching up with demand beginning next year.
According to Green, oversupply is not a major concern at this point, or for the next three years. Looking at the deliveries over the past two years, only 50 percent of the expected supply has been delivered on time. In 2007, for instance, only 30,000 units were handed over after completion, as against a forecast of 60,000 units in 2006. Delays are part of the Dubai property market, and in fact, it may help in the long-term by 'drip-feeding' supply, rather than dumping numerous new units all at once.
As for the office space, it is said that with a population of 1.4million, Dubai currently has, more or less, the same amount of office space under construction, as in Moscow or Shanghai. The office sector is likely to experience a “price correction” when the new supplies hit the market in the next two years.
Dubai is expected to draw considerable demand for properties, as the emirate is a major player in contributing to the $1.8trillion worth of projects that are likely to enter the GCC realty market next year.
The report by Fitch states that foreign demand is a major factor that contributes to Dubai property market, mainly due to the number of expatriates living and working in Dubai.
According to Green, the tension between US and Iran, will not affect the stable Dubai or Middle Eastern markets in any way, nor will it dampen foreign demand, as historically Iranians have been major investors in Dubai, and any escalation in the region, could actually contribute further demand for property.
In the opinion of Matthew Green, the Research Director at Cluttons, UAE, if the government withdrew its promise to grant residency visas for freehold purchasers and their families, it would shun away several hundreds of expatriate buyers, who consider Dubai market to be safer against troubles than in their home countries.
These comments were made following the release of report by Fitch, the ratings firm, which identifies oversupply, and sustaining of foreign demand, as major challenges that Dubai realty sector is likely to witness in near future.
According to the report, if the supply does not surpass demand, prices of properties will decline, reducing revenues further, and this would leave a negative impact on credit profiles of developers.
There are high chances of late deliveries and even project cancellation, due to logistical constraints, that would ultimately result in better match between demand and supply, it is said.
According to analysts, although supply is fast catching up with demand, oversupply is not considered as major threat to the market. As far as supplies are concerned, there are two factors that affect supply -one is delays and the other is construction constraint. However, risks are expected to a certain extent, as supply is catching up with demand beginning next year.
According to Green, oversupply is not a major concern at this point, or for the next three years. Looking at the deliveries over the past two years, only 50 percent of the expected supply has been delivered on time. In 2007, for instance, only 30,000 units were handed over after completion, as against a forecast of 60,000 units in 2006. Delays are part of the Dubai property market, and in fact, it may help in the long-term by 'drip-feeding' supply, rather than dumping numerous new units all at once.
As for the office space, it is said that with a population of 1.4million, Dubai currently has, more or less, the same amount of office space under construction, as in Moscow or Shanghai. The office sector is likely to experience a “price correction” when the new supplies hit the market in the next two years.
Dubai is expected to draw considerable demand for properties, as the emirate is a major player in contributing to the $1.8trillion worth of projects that are likely to enter the GCC realty market next year.
The report by Fitch states that foreign demand is a major factor that contributes to Dubai property market, mainly due to the number of expatriates living and working in Dubai.
According to Green, the tension between US and Iran, will not affect the stable Dubai or Middle Eastern markets in any way, nor will it dampen foreign demand, as historically Iranians have been major investors in Dubai, and any escalation in the region, could actually contribute further demand for property.
Labels: Dubai Real Estate, Latest News
Dubai to house new property court
Thursday, July 10, 2008
More transparency likely in property-related matters, say developers
Dubai will house a new realty court which deals exclusively with property-related cases from September, announced a top official at the Dubai Courts.
The Judge Mohammed Yousuf A Sulaiman, the Deputy Director for Dubai Courts and Cassation Court's Senior Judge, has revealed that the Property Court will be established as per Law No.1 of year 2003, under the main section of the court called 'The First Instance Court.'
It will include jurisdictions over all properties in Dubai, except those associated to Dubai International Financial Center, which has its own judiciary system.
Yousuf said this is being done as per the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE, and Ruler of Dubai. Following the success of the Labour Court, this new court specializing in all property related matters is being launched.
The Chief of the Court of First Instance (Properties Court), Judge Abdul Qadir Mosa, will be responsible for setting up the property court.
At present all property-related cases are being tried under the Civil Law. In case of any new law being enforced within the jurisdiction of the property court, the law will override the Civil Law for all property cases, said the judge. The judgment passed in the property court, can be confronted in the Appellate Court.
There will be a minimum of ten judges in the property court, and the numbers would vary depending on the number of property-related cases.
Yousuf said that currently there are no cases pertaining to real estate issues that are pending at the Dubai Courts. The Dubai Courts do not hear rental disputes, which is solely being dealty by the Rent Committee of Dubai Municipality.
The establishment of this property court is expected to bring more transparency among developers in Dubai, while investors will continue to be inclined towards taking risk, agreed developers and analysts.
Following the announcement of establishment of the court, the Chief Executive of Amlak Finance, Arif Alharmi, commented that the establishment of the property court is a positive development as real estate market is heading towards maturity, and the value of transactions are on the rise.
Arab Richardson, the Nakheel Spokesperson, said that this court would help in efficiently dispensing matters pertaining to property ownership and mortgage enforcement. This move marks a part of futuristic development of legal process pertaining to property industry.
The Director of Research in EFG Hermes, Stephan Schurmann said that investors would be willing to take risks and there will be less illegal activities by developers. However, the question remains as to how well the court would be implemented and how the structure and setting up of the court would be.
The Chairman of Pearl Dubai, Abdul Majeed, agreed that it is a good initiative and will boost market confidence, and will bring more regulation and transparency to the market, while the property disputes too will be solved quickly.
The Tamweel CEO, Wasim Saifi, says that the initiative to create a separate court, by itself, shows the significance that the Dubai Government gives to realty sector. This specific court meant for realty sector will help in crossing hurdles bringing in greater transparency.
The court should work in co-ordination with RERA, rather than developers having to deal with multiple bodies, as at present the Land Department and RERA handles property cases. It should be brought under one umbrella, the Executive Director of ETA Star Properties, Abid Junaid, was quoted as saying.
Dubai will house a new realty court which deals exclusively with property-related cases from September, announced a top official at the Dubai Courts.
The Judge Mohammed Yousuf A Sulaiman, the Deputy Director for Dubai Courts and Cassation Court's Senior Judge, has revealed that the Property Court will be established as per Law No.1 of year 2003, under the main section of the court called 'The First Instance Court.'
It will include jurisdictions over all properties in Dubai, except those associated to Dubai International Financial Center, which has its own judiciary system.
Yousuf said this is being done as per the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE, and Ruler of Dubai. Following the success of the Labour Court, this new court specializing in all property related matters is being launched.
The Chief of the Court of First Instance (Properties Court), Judge Abdul Qadir Mosa, will be responsible for setting up the property court.
At present all property-related cases are being tried under the Civil Law. In case of any new law being enforced within the jurisdiction of the property court, the law will override the Civil Law for all property cases, said the judge. The judgment passed in the property court, can be confronted in the Appellate Court.
There will be a minimum of ten judges in the property court, and the numbers would vary depending on the number of property-related cases.
Yousuf said that currently there are no cases pertaining to real estate issues that are pending at the Dubai Courts. The Dubai Courts do not hear rental disputes, which is solely being dealty by the Rent Committee of Dubai Municipality.
The establishment of this property court is expected to bring more transparency among developers in Dubai, while investors will continue to be inclined towards taking risk, agreed developers and analysts.
Following the announcement of establishment of the court, the Chief Executive of Amlak Finance, Arif Alharmi, commented that the establishment of the property court is a positive development as real estate market is heading towards maturity, and the value of transactions are on the rise.
Arab Richardson, the Nakheel Spokesperson, said that this court would help in efficiently dispensing matters pertaining to property ownership and mortgage enforcement. This move marks a part of futuristic development of legal process pertaining to property industry.
The Director of Research in EFG Hermes, Stephan Schurmann said that investors would be willing to take risks and there will be less illegal activities by developers. However, the question remains as to how well the court would be implemented and how the structure and setting up of the court would be.
The Chairman of Pearl Dubai, Abdul Majeed, agreed that it is a good initiative and will boost market confidence, and will bring more regulation and transparency to the market, while the property disputes too will be solved quickly.
The Tamweel CEO, Wasim Saifi, says that the initiative to create a separate court, by itself, shows the significance that the Dubai Government gives to realty sector. This specific court meant for realty sector will help in crossing hurdles bringing in greater transparency.
The court should work in co-ordination with RERA, rather than developers having to deal with multiple bodies, as at present the Land Department and RERA handles property cases. It should be brought under one umbrella, the Executive Director of ETA Star Properties, Abid Junaid, was quoted as saying.
Labels: Dubai Real Estate, Latest News, Property Law
Dubai, Northern Emirates realty markets to stabilize by 2010
Friday, July 04, 2008
According to a leading developer, the property market in Dubai and other Northern Emirates is likely to stabilize towards 2010, attaining a sustainable balance between investors and property owners.
The realty sector in the United Arab Emirates has witnessed an unparalleled growth over the recent years, due to the frenetic and speculative property market in Dubai, surpassing the rest of the Arabian Gulf States together with ease, said Mohammed Nimer, the CEO of MAG Group Property Development.
The construction boom will reach its heights during 2009, with about $3billion worth of realty under construction. Thereafter, the value of market is likely to fall back to the levels during 2007, of about $1billion, as majority of units are delivered. Hence, this is hoped to subdue the surging market prices, he added.
According to CEO of MAG Group, homeowners currently account for 30 percent of properties sold at launch. Real estate sales are currently being largely dominated by short-term investors, rather than end users. This has led to inflation in prices, as the units are 'sold-on' premium several times prior to completion.
The evidence of UAE construction boom reaching its peak next year is evident in the database of Proleads, a Dubai-based research company, which keeps tab on major construction projects across the region from initial planning to completion.
The database displays about 80 units blocks individually budgeted at a value of $100million now under construction in the Northern Emirates and Dubai, with a total value of $4billion. A dramatic decline is seen in the database on announced or newly planned constructions on similar buildings for next year and by 2010, dozens of projects are shown to reach completion.
With most projects still being under construction and the next bunch of supplies hitting the market in 2009-10 will help in bringing about some stability to the market, Nimer pointed out.
However, this is not likely to provide a major respite from mounting prices, as certain other factors such as ever- is not something to be expected in the short term, Nimer concludes.
The realty sector in the United Arab Emirates has witnessed an unparalleled growth over the recent years, due to the frenetic and speculative property market in Dubai, surpassing the rest of the Arabian Gulf States together with ease, said Mohammed Nimer, the CEO of MAG Group Property Development.
The construction boom will reach its heights during 2009, with about $3billion worth of realty under construction. Thereafter, the value of market is likely to fall back to the levels during 2007, of about $1billion, as majority of units are delivered. Hence, this is hoped to subdue the surging market prices, he added.
According to CEO of MAG Group, homeowners currently account for 30 percent of properties sold at launch. Real estate sales are currently being largely dominated by short-term investors, rather than end users. This has led to inflation in prices, as the units are 'sold-on' premium several times prior to completion.
The evidence of UAE construction boom reaching its peak next year is evident in the database of Proleads, a Dubai-based research company, which keeps tab on major construction projects across the region from initial planning to completion.
The database displays about 80 units blocks individually budgeted at a value of $100million now under construction in the Northern Emirates and Dubai, with a total value of $4billion. A dramatic decline is seen in the database on announced or newly planned constructions on similar buildings for next year and by 2010, dozens of projects are shown to reach completion.
With most projects still being under construction and the next bunch of supplies hitting the market in 2009-10 will help in bringing about some stability to the market, Nimer pointed out.
However, this is not likely to provide a major respite from mounting prices, as certain other factors such as ever- is not something to be expected in the short term, Nimer concludes.
Labels: Dubai Real Estate, Latest News, Market Trends
Morina Residences meet record sales
Tuesday, July 01, 2008
First Dubai Real Estate Development Company has reported record sales on its first launch of residential units at Morina Residential Tower, situated near the Gate of Shams Abu Dhabi on Al Reem Island.
The Vice President - Sales and Marketing, Abudul Rahman Al Kandari was quoted as saying that about 25 percent of the project has been sold generating revenue of Dh.136m, as per the marketing plans, while the total value of the project is Dh.400m. The Company has agreed to resume sales even during the construction process, so as to study the price trends in Abu Dhabi market and to take advantage of the current boom.
The project, as of now, is progressing on schedule. Excavation, piling and construction has begun. This distinguished residential project is one of the most important ones in the Abu Dhabi portfolio.
Comprising 29 storeys, the tower covers an area of 63.572 sq. ft., offering exclusive executive homes with stunning canal views, amidst mangrove trees, ample green space and leisure amenities.
According to Al Kandari the strategic location of the tower in proximity of main amenities at Shams Abu Dhabi, public transport network, and water taxis, has added to value of Morina Residences.
The residences are a wide choice of single, double and triple bedrooms, ranging from executive houses to one or two level duplex and exquisite homes of high design and quality. The units are well-equipped with all necessary home appliances with each flat owning a balcony or more. The towers include 24 hour concierge facility, swimming pools, fitness center, club, children’s play area, information center, reception hall, terrace, parking spaces and more.
Al Kandari assured that the company will work towards offering the best quality at Morina Residential Tower, introducing state-of-the-art project, with the same quality of amenities as the recently completed Sky Gardens residential project at DIFC.
Labels: Abu Dhabi, Al Reem Island, Latest News, Sales
Dubai houses world's first revolving 'Dynamic Tower'
Saturday, June 28, 2008
Dubai now houses the world's first revolving, pre-fabricated tower, worth $3billion, designed by the Italian Architect, David Fisher. The 'Dynamic Tower' comprising 80 storey will be 420 meters tall.
Located on Shaikh Zayed Road, the Dynamic Tower will spread across an area of 1.2million Square Feet. The tower is said to have a central core for lifts, and there are lifts particularly for cars, hence it is possible for residents to drive into their apartments.
The Dynamic Tower is a slender, rotating skyscraper, with its luxury apartments being energy-self-sufficient. The tower offers endless design possibilities, with each floor rotating independently so as to form a building that constantly changes shape, and results in a unique, ever-evolving structure. Each rotating floor will have horizontal wind turbines, so that the towers can generate sufficient energy to power the other five towers of same size.
The tower will be pre-fabricated with parts made in Italy, and the time will be considerably reduced.
Fisher says "It takes only six days for completion of one floor, as against six weeks taken to complete a floor of traditional building."
It has been estimated that it will take about 20 months for completing the Dynamic Tower. It is said that a similar tower is also being planned at Moscow, followed by New York.
Located on Shaikh Zayed Road, the Dynamic Tower will spread across an area of 1.2million Square Feet. The tower is said to have a central core for lifts, and there are lifts particularly for cars, hence it is possible for residents to drive into their apartments.
The Dynamic Tower is a slender, rotating skyscraper, with its luxury apartments being energy-self-sufficient. The tower offers endless design possibilities, with each floor rotating independently so as to form a building that constantly changes shape, and results in a unique, ever-evolving structure. Each rotating floor will have horizontal wind turbines, so that the towers can generate sufficient energy to power the other five towers of same size.
The tower will be pre-fabricated with parts made in Italy, and the time will be considerably reduced.
Fisher says "It takes only six days for completion of one floor, as against six weeks taken to complete a floor of traditional building."
It has been estimated that it will take about 20 months for completing the Dynamic Tower. It is said that a similar tower is also being planned at Moscow, followed by New York.
Labels: Apartments, Latest News, Luxury Homes
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
Regulation banning automatic residency visa for property buyers may be a major knock for Dubai realty sector
The expatriates are less likely to buy properties in Dubai henceforth, following the new regulation by the emirate's real estate regulator, that homeowners are not automatically entitled for long-term residency rights, reveals media reports.
Marwin bin Ghalita of RERA (Real Estate Regulatory Authority) in Dubai, had mentioned that Dubai will introduce short-term visas for foreign investors in the realty sector, and that "there is no direct link" between owning a property in Dubai and obtaining long-term residency rights.
These comments were quite contrary to the earlier statements made by local developers such as Emaar Properties, the leading real estate firm of Arab world.
Dubai, being the commercial hub of Arab world, has been witnessing a property boom ever-since the government permitted foreigners to invest in properties during 2002. Thereafter, a real estate regulation issued during 2006 permitted foreign freehold ownership in certain localities.
Expatriates from neighboring countries such as Pakistan, Lebanon and Iran, who have been facing political instabilities in their respective countries, were being lured to Dubai, over the assumption that owning a property here would ensure long-term visas to them, as it would prove to be a huge asset for them if situation in their own countries turned sour. Dubai was the only market in the region, offering such a link.
The recent comments by bin Ghalita, has now left the foreigners doubtful about the promise of residency from developers, including the Dubai Properties and Nakheel, which are state-owned and has legal backing.
"Developers should not lure investors to property sector with the promise of a residence visa," bin Ghalita commented.
The existence of "safety homes" in Dubai was a main factor for the huge property demand, and any decision on the part of regulators to review the visa status of existing homeowners would bring about "legal hazzles" and may badly hit the image of the emirate, says the media.
Owners are likely to feel that they have been offered a worthless investment, particularly, with the developers being close linked to the state in Dubai.
Already the shares of Emaar Properties slipped 0.45 percent and that of Union Properties by 2.68 percent, following the announcement by RERA on Tuesday.
In the meanwhile, the regulator has submitted a proposal to the government to grant visit visas to foreign homeowners, which may also be made applicable to existing homeowners if approved, revealed bin Ghalita.
About 80 percent to of UAE population are foreigners, with majority from the Indian subcontinent, Iran, and other Arab countries.
Marwin bin Ghalita of RERA (Real Estate Regulatory Authority) in Dubai, had mentioned that Dubai will introduce short-term visas for foreign investors in the realty sector, and that "there is no direct link" between owning a property in Dubai and obtaining long-term residency rights.
These comments were quite contrary to the earlier statements made by local developers such as Emaar Properties, the leading real estate firm of Arab world.
Dubai, being the commercial hub of Arab world, has been witnessing a property boom ever-since the government permitted foreigners to invest in properties during 2002. Thereafter, a real estate regulation issued during 2006 permitted foreign freehold ownership in certain localities.
Expatriates from neighboring countries such as Pakistan, Lebanon and Iran, who have been facing political instabilities in their respective countries, were being lured to Dubai, over the assumption that owning a property here would ensure long-term visas to them, as it would prove to be a huge asset for them if situation in their own countries turned sour. Dubai was the only market in the region, offering such a link.
The recent comments by bin Ghalita, has now left the foreigners doubtful about the promise of residency from developers, including the Dubai Properties and Nakheel, which are state-owned and has legal backing.
"Developers should not lure investors to property sector with the promise of a residence visa," bin Ghalita commented.
The existence of "safety homes" in Dubai was a main factor for the huge property demand, and any decision on the part of regulators to review the visa status of existing homeowners would bring about "legal hazzles" and may badly hit the image of the emirate, says the media.
Owners are likely to feel that they have been offered a worthless investment, particularly, with the developers being close linked to the state in Dubai.
Already the shares of Emaar Properties slipped 0.45 percent and that of Union Properties by 2.68 percent, following the announcement by RERA on Tuesday.
In the meanwhile, the regulator has submitted a proposal to the government to grant visit visas to foreign homeowners, which may also be made applicable to existing homeowners if approved, revealed bin Ghalita.
About 80 percent to of UAE population are foreigners, with majority from the Indian subcontinent, Iran, and other Arab countries.
Labels: Latest News, Market Trends, Property Law
High demand for villas in Dubai, leads to 78% surge in prices
Sunday, June 22, 2008
The scarcity of villas in Dubai, has resulted in increased demand for villas, reports Collier International UAE.
According to the House Price Index (HPI) of Colliers International, the demand for villas have continued to remain high as against the demand for apartments and townhouses, and this has resulted in surge in prices of villas by 78%.
The CEO of Colliers International UAE, John Davis, says "Demand for villas have remained particularly high, given the relative scarcity of villas as against in the case of apartments. More dwellings are currently under construction, likely to be delivered by end of 2008 and in 2009. The villas constitute 21 percent of total mortgaged properties used to collate the index."
The quarterly overall villa index had increased throughout 2007 till the first quarter of 2008, with an 85 percent increase during the period, it has been reported. The average rate per square foot for villas in Dubai during the first quarter has been Dh.1338.
The growth of townhouses during the period was far slower than the apartments and villas. The annual index saw an increase by 29 percent, while apartments saw an increase by 82 percent. Townhouses constitute 15 percent of the total mortgaged properties.
Dubai saw an increase in the number of completed apartments being delivered into the market during first quarter of 2008, particularly in Dubai Marina, Downtown Burj Dubai and The Palm Jumeirah. This additional supply input available for purchase saw a positive affect on the average rate per square foot for apartments, increasing it to Dh.1841 during the first quarter.
The HPI index report includes details on built-up area of these properties and total value of transactions per month. Depending on coverage of thirteen developments in Dubai, the weighting has been given on the basis of unit type - apartments, villas and townhouses at the rate of 55 percent, 34 percent and 11 percent respectively.
The index reveals that property prices in foreign ownership zones continue to increase - driven by strong demand for properties from end-users. The reason behind the increased demand for these properties are due to factors such as the high growth in UAE economy, particularly in Dubai, with high growth rate being achieved at the rate of 11 percent per annum, and due to numerous profitable finance options being offered to residents and non-residents.
"The index report is across expatriate free zone, and the numbers are likely to grow. It is an on-going process over a period of time," Davis said.
As per the index, the high residential rates in Dubai, currently averaging at Dh.950 per square foot is getting more attractive and cost-effective for end-users. Further, the decline in value of dollar-pegged dirham, as against other global currencies has enhanced the attractiveness of the property in Dubai, particularly for expatriates.
Further surging construction costs are also causing an increase in sales price of newly launched developments in Dubai, with costs expected to rise by 18 to 20 percent towards end of the year, states the report.
Labels: Dubai Real Estate, Latest News
UAE realty market likely to stabilize by 2010
Saturday, June 21, 2008
The UAE property market will attain a demand-supply balance during 2010-2011, as vast supplies of properties are expected during the coming years, reveal recent reports.
The UAE realty market has seen major growth over the past couple of years, due to several factors at the micro and macro economic levels. However, the prices of real estate products is likely to increase during the coming years, with the high demand from expatriates, and due to increase in cost of labour and construction materials, says Bilal A Kanbar, Business Line Manager, Impaqta.
According to a property report released by a Saudi-based management advisory services company and Great Properties, a real estate sales and marketing agency, based in Dubai, the real estate boom in UAE is likely to face a major hindrance which will seriously affect completion of projects across the emirates.
As per the report, one major problem is the ready-mix concrete suppliers, struggling with huge backlog due to massive shortage in cement supplies. To add to this, the prices of cement and steel have surged by 50 and 70 percent respectively last year. Increasing labour costs, which has gone up by three times over last year, is another factor.
The report states that delay in delivery of new properties has resulted in rent and price increases, by 40 to 50 percent over the past couple of years in Dubai.
According to Kanbir, most projects are still under construction, and the next series of supply will hit the market by 2010, and this will is expected to bring in stabilization in property prices.
The UAE realty market has seen major growth over the past couple of years, due to several factors at the micro and macro economic levels. However, the prices of real estate products is likely to increase during the coming years, with the high demand from expatriates, and due to increase in cost of labour and construction materials, says Bilal A Kanbar, Business Line Manager, Impaqta.
According to a property report released by a Saudi-based management advisory services company and Great Properties, a real estate sales and marketing agency, based in Dubai, the real estate boom in UAE is likely to face a major hindrance which will seriously affect completion of projects across the emirates.
As per the report, one major problem is the ready-mix concrete suppliers, struggling with huge backlog due to massive shortage in cement supplies. To add to this, the prices of cement and steel have surged by 50 and 70 percent respectively last year. Increasing labour costs, which has gone up by three times over last year, is another factor.
The report states that delay in delivery of new properties has resulted in rent and price increases, by 40 to 50 percent over the past couple of years in Dubai.
According to Kanbir, most projects are still under construction, and the next series of supply will hit the market by 2010, and this will is expected to bring in stabilization in property prices.
Labels: Dubai Real Estate, Latest News, Market Trends
Burj Dubai to grow taller: Emaar
Thursday, June 19, 2008
Emaar Properties, the developer of the world’s tallest building 'Burj Dubai', has announced that the height of Burj Dubai will be increased further, and the work towards realizing this is already progressing. The final height will however, be revealed on its completion in September 2009.Construction of two communication floors has already begun, and the structural steel work has started. Apart from increase in height, Burj Dubai is also likely to have its interior finishes upgraded. International designers from California have been revisiting the designs to make the residences more attractive and functionally superior. This process is being carried out over the past three months, with prominence given to maintaining high-quality standards.
The Chairman of Emaar, Mohamed Ali Alabbar, said "Burj Dubai is an unparalleled accomplishment in the history of mankind. The tower has been setting new benchmarks in architecture with its driving forces such as cutting edge innovation, breakthrough technology and creativity. It is now pushing its own record breaking standards further, through enhancements in height and design."
"The enhancements on Burj Dubai are being done through advanced technology and qualitative improvements. Several aspects of Burj Dubai, such as the interiors were decided in 2004. With current enhancement, we intend to introduce latest in quality considerations that will keep Burj Dubai truly exclusive," he added.
Standing high at 636 meters, Burj Dubai is already the tallest building and structure in the world. The tower has the largest number of floors than in any building. About 7500 professionals and skilled workers are employed on-site, and various infrastructure building works are being undertaken.
Labels: Burj Dubai, Emaar, Latest News
New property law issued in Ajman
Tuesday, June 17, 2008
A new property law has been issued in Ajman, which is expected to take the property sector in Ajman to further heights.
The Member of Supreme Council and Ruler of Ajman, H.H. Shaikh Humaid Bin Rashid al Nuaimi, issued Amiri Decree No.7 and 8, 2008, to regulate the land and property sector in the emirate last week.
The prices in Ajman's property sector have climbed up from Dh.350 per square foot to Dh.500 per square foot over the past six months. Billions of dollars are being invested in the property sector of the emirate, and the growing housing sector in Ajman has drawn considerable interest from the investors.
The 34 articles in the decree legalizes freehold ownership of property and land for UAE and GCC citizens, and the companies wholly owned by them, as well as to the public stock companies. GCC buyers and developers also have the right to own land and properties on freehold basis or on 50-year leasehold basis, renewable in designated areas to be determined and approved by the Ajman Ruler.
The law designates the Department of Land and Property to regulate the sector, and the department is entirely responsible for registration of property rights and long-term leasing contracts.
The bank guarantees need to be deposited for those wishing to invest in Ajman, and that amount should be used only for the project. An amount of five percent of project value will be frozen and will not be released until completion of construction of the project.
The Law stipulates that a developer cannot advertise projects without written approval from the department. The developers will be responsible for maintaining the project for ten years, following handover.
The law mandates a fine of Dh.100,000 on those who practice real estate business in the emirate without license.
The Member of Supreme Council and Ruler of Ajman, H.H. Shaikh Humaid Bin Rashid al Nuaimi, issued Amiri Decree No.7 and 8, 2008, to regulate the land and property sector in the emirate last week.
The prices in Ajman's property sector have climbed up from Dh.350 per square foot to Dh.500 per square foot over the past six months. Billions of dollars are being invested in the property sector of the emirate, and the growing housing sector in Ajman has drawn considerable interest from the investors.
The 34 articles in the decree legalizes freehold ownership of property and land for UAE and GCC citizens, and the companies wholly owned by them, as well as to the public stock companies. GCC buyers and developers also have the right to own land and properties on freehold basis or on 50-year leasehold basis, renewable in designated areas to be determined and approved by the Ajman Ruler.
The law designates the Department of Land and Property to regulate the sector, and the department is entirely responsible for registration of property rights and long-term leasing contracts.
The bank guarantees need to be deposited for those wishing to invest in Ajman, and that amount should be used only for the project. An amount of five percent of project value will be frozen and will not be released until completion of construction of the project.
The Law stipulates that a developer cannot advertise projects without written approval from the department. The developers will be responsible for maintaining the project for ten years, following handover.
The law mandates a fine of Dh.100,000 on those who practice real estate business in the emirate without license.
Labels: Ajman, Latest News, Property Law
Al Fara'a announces complete sales of Image Residences first phase
Thursday, May 22, 2008
Al Fara'a Properties, a flagship subsidiary of Al Fara'a Construction, Industrial and Property Group, has announced complete sales of the first phase of Dh.505mn 'Image Residences', within days after launch.Being a luxury residential project, it generated interest from global and regional investors. The developer seeks to leverage the project's sales to further strengthen their expansion plans.
The success of the project has been attributed to its high quality and wide range of offerings, which include studio, single, double, and triple bedroom apartments and townhouses. Comprising 17 storey and 11 storey tower, the development boasts of smart home technology, apart from other amenities such as landscaped leisure deck on the podium, swimming pool, childrens pool, fully-equipped gym, and outdoor seating, and BBQ area.
The retail outlets on the groundfloor are also available for benefit of future residents. Image Residences are the perfect fit at the Downtown Jebel Ali development, which is a 200 hectare mixed-use urban community, stretching 11km across Sheikh Zayed Road and comprises three individual districts- The Trellis District, the Urban Center and Medina. The Medina District will be the ideal backdrop to Image Residences and other mid and low-rise residential neighborhoods.
Small cafes, courtyards, plazas and local shops actually accentuate the overall family-friendly environment of the district, that boasts of cobblestone streets and pathways which entice residents to walk around and experience the tranquility of new residential hub.
Labels: Latest News, Luxury Homes, Sales
Emaar unveils sale of unique signature residences
Saturday, May 10, 2008
Emaar Properties plans to unveil a series of exclusive signature residences in its well-known master planned communities on 10th May 2008. The special sale of premium residences within The Views, The Lakes, Dubai Marina and Downtown Burj Dubai will be open for a day, and will be allotted on a 'first-come, first-serve-basis, offering easy home finance options to several financial institutions.
Among the portfolio of homes for sale are the villas, apartments, and townhouses that are distinguished from each other by their architectural elegance, location, and easy access to amenities such as the Deema townhouses with terraces overlooking The Lakes, the Tanaro apartments at The Views that offer wonderful golf course views, and a group of apartments in Downtown Burj Dubai and Dubai Marina.
The Views and The Lakes, that form a part of Emirates Living, are a group of established communities by Emaar. The Deema townhouses in The Lakes are situated amidst placid lakes and are easily accessible to world-class golf courses. The tranquil parks and waterways add to the quality of living in the community. The Views offer spectacular views of the nearby golf course. The Tanaro is a residential tower that is highly in demand, due to its easy access to Emaar Business Park commercial building cluster.
The Downtown Burj Dubai is another mega-flagship project of Emaar, which anchors Burj Dubai, the tallest building in the world, and The Dubai Mall, the largest shopping and entertainment destination in the world, among many other attractions. The customers get to choose from a wide range of apartments ideally located in elegantly designed residential projects, with most homes offering views of Burj Dubai.
Dubai Marina is one of the first and largest waterfront projects in the region, offering Riviera-styled lifestyle against the backdrop of Marina, and the 11km stretch boardwalk, which includes a rich spread of retail outlets and restaurants. The residential projects by Emaar located on the waterfront location, offers wide array of amenities for residents.
Emaar's residential communities are one among the most desired properties in Dubai, and the sale is considered to be a good and unique opportunity for potential home-owners to be a part of the vibrant Emaar community.
Potential customers are welcome to visit the Downtown Living Sales Center and Abu Dhabi Sales Center on 10th May between 9am and 6pm, or call toll-free 800-EMAAR or log on to www.emaar.com for details.
Among the portfolio of homes for sale are the villas, apartments, and townhouses that are distinguished from each other by their architectural elegance, location, and easy access to amenities such as the Deema townhouses with terraces overlooking The Lakes, the Tanaro apartments at The Views that offer wonderful golf course views, and a group of apartments in Downtown Burj Dubai and Dubai Marina.
The Views and The Lakes, that form a part of Emirates Living, are a group of established communities by Emaar. The Deema townhouses in The Lakes are situated amidst placid lakes and are easily accessible to world-class golf courses. The tranquil parks and waterways add to the quality of living in the community. The Views offer spectacular views of the nearby golf course. The Tanaro is a residential tower that is highly in demand, due to its easy access to Emaar Business Park commercial building cluster.
The Downtown Burj Dubai is another mega-flagship project of Emaar, which anchors Burj Dubai, the tallest building in the world, and The Dubai Mall, the largest shopping and entertainment destination in the world, among many other attractions. The customers get to choose from a wide range of apartments ideally located in elegantly designed residential projects, with most homes offering views of Burj Dubai.
Dubai Marina is one of the first and largest waterfront projects in the region, offering Riviera-styled lifestyle against the backdrop of Marina, and the 11km stretch boardwalk, which includes a rich spread of retail outlets and restaurants. The residential projects by Emaar located on the waterfront location, offers wide array of amenities for residents.
Emaar's residential communities are one among the most desired properties in Dubai, and the sale is considered to be a good and unique opportunity for potential home-owners to be a part of the vibrant Emaar community.
Potential customers are welcome to visit the Downtown Living Sales Center and Abu Dhabi Sales Center on 10th May between 9am and 6pm, or call toll-free 800-EMAAR or log on to www.emaar.com for details.
Labels: Emaar, Latest News, Sales
Supertowers with unique concepts to adorn Dubai skyline
Tuesday, May 06, 2008
Dubai's skyline is all set to be re-defined with numerous supertowers which comprise more than 100 storey and are more than 600 meters in height, which totals up to an estimated value of more than $7bn (Dh.25bn).
The projects, that are likely to be announced towards end of this year, will form a part of master-planned development, which will increase the Dubai's standards of urban development and masterplanning.
The projects titled as AC Towers, EP Site 07, 09 and 15, are designed by Adrian smith and Gordon Gill, and have been approved by the Dubai Government. The projects will be complete in five years time.
The Lead Architect, Smith also owns the credit of designing the Burj Dubai, the world's tallest tower.
"Dubai has already become host to maximum number of supertowers in the world. We plan to add a few more to the city's growing skyline. Among the 13 supertowers being designed by us, five will be located in the UAE and one in Qatar," Smith said.
These towers will stand out among all the other towers currently being developed in Dubai, due to their eco-friendliness, sustainability, energy efficiency and intelligent building systems.
According to new technology being employed by Smith, the buildings will draw air from the top floors that are 10 degree cooler and will spray them to lower levels where the temperature is higher. This unique technique has never been employed in any other supertowers in the world till date.
The new buildings have been so designed that they save energy by 40 to 60 percent and get zero level in energy consumption.
AC Towers:
AC is a cluster of three supertowers rising above 100 storeys and are connected at the base with an atrium, and skybridges. Being a mixed use project, it spreads over an area of 800,000 to 900,000 square meters and comprises residential, commercial, hotel, and entertainment space, with a capacity to accommodate upto 6000 people. A canal and waterway that pass through the AC Towers will create open space for educational and theatrical activities.
EP 07 Tower
As for the EP projects, EP 07 will be as high as 125 storeys and will be a true reflection of the pearl trading and farming heritage of Dubai. This mixed-use project will be nearly 600 meters in height and cover a built-up area of 350,000 square meters. EP 07 will be covered by ribbons of steel that help in utilizing the solar energy and making it sustainable. Also, the buildings are so designed that they withstand the wind pressure, managing it in a more effective manner.
EP 09 Tower
The curved structures of the EP 09 tower hosts two buildings each and includes six towers with 30 to 40 floors, spreading across a built-up area of 450,000 square meters. The mixed-use community will have one purely residential community and the other two which include retail, commercial, hospitality and entertainment amenities. All these are connected at the base, but separated above by a distance spanning 175 meters. The smart energy-efficient buildings will open up to landscaped roof, garden and podium. The energy save by one tower could be passed on the other, and hence the buildings complement the use of energy. This concept too, is unique to Dubai and is being implemented for the first time ever.
EP 15 Tower
The EP 15 tower blends together simple geometric principles with new, upcoming technologies to create a modern, soaring tower of light. The tower has a series of faceted surfaces which increase light and air travelling through the building and maximizes energy generation in building systems.
The tower filters light and wind and the prism shape helps in withstanding high wind pressures, minimizing risks. The six holes in the building helps wind pass through the building, with 25 percent less cost.
With a built-up area of more than 300,000 square meters, the tower will increase to more than 101 floors in height. It will be a mixed-use project featuring commercial and retail spaces and hotel and convention facilities.
Labels: Dubai City, eco-friendly, Latest News, Real Estate Projects
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
Dh.200bn The Mohammad Bin Rashid Gardens Project to keep up Green motive
Sunday, April 13, 2008
Dubai has embarked upon a massive green initiative, costing about Dh.200bn, spreading across 880mn square feet of land, aimed towards preserving and protecting the environment.
The Vice-President and Prime Minister of UAE, and Ruler of Dubai, H.H. Sheikh Mohammad Bin Rashid Al Maktoum, launched the project, named 'The Mohammad Bin Rashid Gardens Project' on Friday.
The project comprises four clusters with 73 percent greenery, implemented by Dubai Properties, a member of Dubai Holding.
A model of the project has already been shown to Shaikh Mohammad during the launch on Friday.
The event saw the participation of Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum - the Dubai Crown Prince, Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum -Deputy Ruler of Dubai, Mohammad Abdullah Al Gergawi - Cabinet Affairs Minister, and Lt. Gen. Mussabah Rashid Al Fattan - Head of Shaikh Mohammad's office.
The CEO of Dubai Holding, Al Gergawi, said the project, with its green environment-friendly buildings, restricts power usage and protects against wastage of natural resources, aiming to meet Shaikh Mohammad's concern over health and welfare of future generations.
The Project is divided into four sections - the 'House of Wisdom' which includes translation houses, Knowledge Gardens, international universities, international organizations, history and science colleges, and Shaikh Mohammad’s Mosque.
Secondly the 'House of Humanity' will include the House of Giving, Museum of Light, Mohammad Bin Rashid Humanitarian and Charity Establishment, Human Civilization Museum and charities.
Thirdly, 'House of Nature' project will be the main cluster of the project, which includes international themed gardens, hotels, recreational clubs, a huge zoo, flower gardens, apart from alternative medical and herbal clinics.
Finally, 'House of Commerce' will comprise higher educational institutes in Banking and Finance, Insurance Companies, Large International Company's branches and Islamic and International Banks.
The Vice-President and Prime Minister of UAE, and Ruler of Dubai, H.H. Sheikh Mohammad Bin Rashid Al Maktoum, launched the project, named 'The Mohammad Bin Rashid Gardens Project' on Friday.
The project comprises four clusters with 73 percent greenery, implemented by Dubai Properties, a member of Dubai Holding.
A model of the project has already been shown to Shaikh Mohammad during the launch on Friday.
The event saw the participation of Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum - the Dubai Crown Prince, Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum -Deputy Ruler of Dubai, Mohammad Abdullah Al Gergawi - Cabinet Affairs Minister, and Lt. Gen. Mussabah Rashid Al Fattan - Head of Shaikh Mohammad's office.
The CEO of Dubai Holding, Al Gergawi, said the project, with its green environment-friendly buildings, restricts power usage and protects against wastage of natural resources, aiming to meet Shaikh Mohammad's concern over health and welfare of future generations.
The Project is divided into four sections - the 'House of Wisdom' which includes translation houses, Knowledge Gardens, international universities, international organizations, history and science colleges, and Shaikh Mohammad’s Mosque.
Secondly the 'House of Humanity' will include the House of Giving, Museum of Light, Mohammad Bin Rashid Humanitarian and Charity Establishment, Human Civilization Museum and charities.
Thirdly, 'House of Nature' project will be the main cluster of the project, which includes international themed gardens, hotels, recreational clubs, a huge zoo, flower gardens, apart from alternative medical and herbal clinics.
Finally, 'House of Commerce' will comprise higher educational institutes in Banking and Finance, Insurance Companies, Large International Company's branches and Islamic and International Banks.
Labels: Dubai City, Environment-friendly, Latest News
Damac to continue with construction of Palm Springs
Saturday, April 12, 2008
Damac Properties has now formally announced the reversal of its decision to stop the Palm Springs project, say media reports.
After the leading Dubai-based developer, cancelled the 25-storey beachfront development project at the Palm Jebel Ali last month, offering the investors with compensation far below the current market value, the investors raised hues and cries about losing millions of Dirhams on their investment.
The tale is said to have created a bad publicity for Damac in major markets which the firm has been seeking to attract investments from, particularly in international markets such as the UK.
Investors have revealed that they received calls from Damac earlier this week, informing them about progressing with the Palm Springs project.
Investors have revealed that they received calls from Damac earlier this week, informing them about progressing with the Palm Springs project.
The project will be located on the new plot provided by master developer Nakheel, with few changes in the building plans.
Damac's Senior Vice President, Niall McLoughlin, in his statement, mentioned that Damac will shortly announce a decision on the project.
Damac had reasoned that the cancellation of the project after five years of launch was due to the "re-development of plots" and that the development could no longer be situated on the re-allocated plot.
This explanation was however questioned back, when Palm Jebel Ali master developer, Nakheel, said it had informed the investors about changes to the masterplan about ten months ago.
About 60 UK-based investors have been threatening Damac to take the matter to court, unless the developer reverses its decision and progresses with the construction work.
About 60 UK-based investors have been threatening Damac to take the matter to court, unless the developer reverses its decision and progresses with the construction work.
The group stormed the London launch of Damac's Jumeirah Village South project, and gave the developer a time-limit until 11th April to change its decision or face legal action.
In the meanwhile, Damac also changed its mind about the cancellation of Haz Tower in Business Bay on Wednesday, after the investors complained about the plans to pull back the project. The Haz Tower worth Dh.240million was launched in July and is now estimated to be about Dh.660mn.
Labels: Damac Properties, Latest News, Palm-Jebel-Ali
