Dubai Real Estate News
UAE Property Market Trends and Reviews

"; World's tallest building, Burj Khalifa, developed by Emaar Properties, is all set to welcome its first residents with orientation programme currently on the go, for home-owners of Armani Residences, located on the 9th to 16th storeys of the tower.

The interiors of the world-class, first-of-its-kind Armani Residences are in their final stages, while the completion works of The Residences are also making quick progress at the Burj Khalifa, revealed a statement by Emaar.

The hand-over of homes, begin with Armani Residences comprising 144 private apartments, designed personally by Giorgio Armani. This will be followed by Armani Hotel Dubai, which occupies the concourse to Level 8 and Levels 38 & 39.

The Residences, comprising 900 apartments, and The Corporate Suites, a collection of high-end offices, will be handed over to customers, beginning March. The handover programme will take anywhere between two to six months.

The Armani Residences have been developed under a joint-collaboration between Emaar and Giorgio Armani, personally designed by the fashion legend Giorgio Armani, while The Residences are designed by Nada Andric of Skidmore, the award-winning designer, Owings & Merril, the architects of the tower, Al Matrooshi said.

The design elements are based on the region’s heritage and interpret into spatial elements with traditional motifs and right selection of materials. Among the materials used are polished dark stones, glass, stainless steel, and Silver Travertine flooring, handmade rugs, Venetian stucco walls, intricate Brazilian Santos Rosewood, he said.

Al Matrooshi revealed that corridors and lobbies are adorned with luxurious finishes, local and international art pieces, specially commissioned for the corridor area, which reflect the overall interior design approach of upholding regional design elements.

Labels: Burj Khalifa, Latest News

"; The Vice President and Prime Minister of UAE and Ruler of Dubai, H.H. Sheikh Mohammed bin Rashid Al Maktoum, has issued new economic and financial legislation that constitute a new addition to legislative structure in Dubai.

The Law No.35/2009 replaces Law No.18/2006 and deals with management of Dubai Government's public funds. The new law stipulates the following:

Regulating the preparation of annual budgets of all government bodies, inclusive of those, whose annual budgets are listed in Government budget, those who enjoy fiscal independence or those entities who receive financial support from the Government.

Government entities need to provide the exact data on their revenues and spending, and should abide by the standards aimed at controlling public spending and governmental revenues. The annual budgets of government entities will also have to be approved by the Dubai Supreme Fiscal Committee. These entities are not entitled to use, hold or spend any part of their revenues for their own activities or investments.

Government entities that enjoy fiscal independence and those with surplus revenues will have to contribute to government's treasury as they are considered public revenues.

The Law emphasizes government entities with annual budgets listed in the government's budget, to transfer to the Dubai Department of Finance, all funds lodged by clients in the form of refundable deposits or any other form, as per the relevant instructions to be issued by the department.

The new legislation forms a part of Dubai Government's plans to further develop its legislations to cope with rapid changes and new developments, and to comply with best relevant international practices. With the new legislation, Dubai's status as global economic export and re-export hub is further strengthened.

H.H. Sheikh Mohammed Bin Rashid also passed Decree No.58/2009 approving the statute of Dubai International Arbitration Centre. The new law replaces its current statute which was approved by Law No.10/2004.

The new decree aims to revise the effective legislations in Dubai, to keep pace with new global developments and abide with best practices adopted by advanced nations in the areas of resolving disputes through alternative approaches.

Labels: Latest News

"; Dubai will not sell its any of its assets to bail out Dubai World, confirmed a top Dubai Government Official, adding that the group will be able to overcome the situation by re-structuring its debts and selling its own assets.

According to Director-General of Dubai Department of Finance, Abdul Rahman Al Saleh, part of financing Dubai World will be through asset sales, as these are the company’s assets and not government assets.

The motive behind restructuring of Dubai World is to ensure continuation of its operation as a viable commercial entity. The future of the company is most important than liquidity. It is in the company's interest to inject liquidity or restructure it, to ensure that it remains sustainable in the long-term, he said.

Al Saleh said that the Dubai World and Nakheel problem has originated from short-term lending on long-term projects, which doesn't usually work in a volatile market situation. Majority of Dubai World and Nakheel projects are long-term projects with strategic importance. These cannot be developed through short-term lending.

Al Saleh said that the Dubai Financial Support Fund, established in July this year, can offer support to Dubai World, if needed. He re-iterated the government's stand on the state guarantee for Dubai World's debts.

Al-Saleh also pointed out that the legal documents signed at the time of company establishment do not carry any clause on the government's guarantee. The clauses clearly specify that the government will not guarantee the liabilities of the company.

Labels: Dubai City, Latest News

"; The Dubai Government is capable of honouring and meeting its internal and external commitments, confirmed a senior Dubai Government official today.

The Director General of Dubai Finance Department, Abdul Rahman Al Saleh, said that the re-structuring of Dubai World is a natural procedure that could happen in any country and to any company.

"The media has blown the issue of re-structuring part of the group's debts, including delay in repayment of Nakheel's debts out of proportion. Restructuring of companies is a common practice worldwide in several countries and companies," Al Saleh said.

Al Saleh strongly refused that Dubai Government has announced that it would not guarantee debts of the group, and added that the Articles of association of Dubai World stipulates that the emirate's government shall not guarantee its debts, and pointed out that the distinction should be made between the Dubai government and the group which comprises several companies, including Nakheel and Limitless World, operating in several sectors.

Re-structuring is aimed to allow the group to steam ahead with a new shape and keep abreast of changes, Al-Saleh said, and continued that as for cancellation of projects by the group, it is better and wise to delay projects that are yet to be executed.

He agreed that few assets of the group in Dubai or abroad may have to be sold, but said that it is a natural act to bolster the financial situation of the group under such circumstances.

Although Dubai World is active in several sectors, it is the real estate sector that has been much impacted by the international financial crisis.

Labels: Latest News

"; With the recession having loosened its grip across the globe, global investors have begun eyeing Dubai real estate market as the property prices have slowly begun to move towards reasonable levels, an industry expert said.

The latest results from the Dubai House Price Index from Colliers indicate that real estate prices in Dubai have grown almost seven percent during the third quarter of the year from the previous quarter, said Tej Kohli, real estate investor and founder of Ozone Real Estate.

The results indicate a bounce in the market and are a true indication of excellent recovery, Kohli said.

According to Kohli, the stability in property prices is set to be steady from this point on, given the fact that real estate prices are moving to more reasonable levels.

The best indication about the Colliers report is that transactions increased by 64 percent during the third quarter, due to relative stability in prices and affordable housing.

Moreover, the growing property boom will be further strengthened by a series of new launches and openings within the emirate, the report said.

Towards mid-December this year, the world’s tallest tower Rose Rayhaan, will see a gala opening, at Sheikh Zayed Road, after which, the five-star Jebel Ali Golf Resort and Spa will re-open following a brief renovation, Kohli pointed out.

A series of projects due for launch, apart from the entry of new airport, a series of high-end hotels, including The Conrad Hotel Dubai and second Ritz Carlton are all ready for opening early next year.

This will be followed by the opening of the crescent-shaped The Palm Jumeirah, Royal Amwaj Resort & Spa, Jumeirah Golf Estate, Dubai International Airport, Tiger Woods' Al Ruwaya Resort, all set to commence in 2010.

The slew of launches indicate that Dubai is well on track, and the global tourist numbers are up by 4 percent during first half of 2009, compared to same period last year, Kohli concluded.

Labels: Latest News, Market Trends

"; With the Dubai property market, slowly getting back to normalcy, Hesham Elfar, CEO of Coldwell Banker, UAE, reveals to the media, the strategy to be adopted to retain the market in the same way.

According to Hesham, Dubai real estate market is yet to hit the bottom, and a further dip in property prices are likely, before things improve. During the next six months, while the villa prices would continue to remain stable, apartments are likely to see a dip by 5 to 7 percent, due to excess supply coming into the market during the coming months. Even commercial properties are likely to see a fall in prices, due to upcoming supply.

With Dubai showing tentative signs of recovery, players in the industry should not get too complacent, says Hesham. There is more for Dubai to do before it can bounce back, he adds.
In the first place, residence visa issue needs to re-evaluated, as this has drawn several people into investing in real estate in Dubai. A three-year visa has been replaced with a six-month multiple-entry visa, which is expensive and a tedious process with lot of paperwork. This issue needs to be resolved to attract foreign investment, Hesham said.

Also, to further boost commercial markets, the government should offer incentives to companies to establish shops in the UAE. When companies set up offices in a country, they in-turn create job opportunities, housing requirements, and increase consumer spending, which is vital for the economy. Also incentives are needed for financial institutions and trading companies. But, more than anything, a clear, transparent regulation is required to ensure that buyers' rights are protected in a real estate market, Hesham points out.

According to Hesham, Burj Dubai, once opened, will increase the value of property in the area surrounding it.

The Executive Towers, which is recently completed is well-positioned and will gain the benefit of being in proximity to Burj Dubai.

The Infinity Tower, which will be unveiled in June 2010, will offer wonderful views of the sea and Dubai Marina to its residents, given its spiral design.

Victory Heights can get large, reasonably priced villas, close to Dubai Sports City's amenities.

Labels: Latest News, Market Trends

"; The Dubai Government has established a new judicial committee to deal with bounced cheque cases in the property sector.

H.H. Shaikh Mohammad Bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai issued a decree establishing a judicial committee to this effect.

The Committee will settle dispute cases pertaining to bounced cheques irrespective of whether issued by a buyer to a developer or from tenants and beneficiaries of long-term units as per the provisions of Law No.7 of 2006 pertaining to property registration in Dubai.

The judgments from the Committee will be decisive and cannot be challenged and will be implemented through execution department of Dubai Courts.

The decree also prevents the Public Prosecution and Courts from doing any investigation on bounced property cheques or issuing any sort of ruling in this regard, unless the case is looked into by the Committee. The bodies must start referring such cases to the Committee.

According to experts, such a move will help the real estate sector of the emirate in moving forward.

The CEO of Real Estate Regulatory Agency (RERA), Marwan Bin Galita, said that creating a judicial committee to settle bounced cheque disputes in property deals will prove useful to property market. Several real estate issues could be solved by bridging gap between buyers and sellers by offering them logical companies that satisfy both.

The Committee will include a Chairman, who will be chosen by appeal court judges in Dubai Courts, apart from two other members, the Dubai Primary Court judge and a representative from Dubai Land Department.

The Committee has the right to cancel a bounced cheque issued to a developer if it has been proven so, and obliging the issuer of the cheque to write another one in its place to replace the disputed cheque.

Dubai is following an international standard of solving disputes involving bounced cheques in property business and this helps in maintaining transparency, and to regain market confidence.

Labels: Latest News

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

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

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

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

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

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

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

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

Labels: Investment Property, Latest News

"; The "prompt payment reduction" scheme, wherein a 30 percent discount on purchase price was announced by Mizin, is limited to phase two investors of Remraam project, and the offer may not be available for other Mizin developments, a company official clarified.

The payment reduction offer was well received among investors, and they had been appreciative of the company's efforts to assist them during the time of crisis, said an official from the Dubai Properties Group (DPG).

Investors in phase one have already paid an attractive price for their property, and therefore, only phase two investors are eligible for discount, and particularly for investors in Remraam project, he clarified.

Launched two weeks back, the reduction scheme aims to assist Remraam investors during the current economic scenario.

Several developers in Dubai have already offered discounts or prompt payment incentives to investors. In January, Union Properties announced its 10 percent reduction to buyers willing to settle their balance prior to due date. Even Nakheel had announced a "prompt payment scheme" for five of its projects, permitting investors to save up to 30 percent.

According to officials, all of Arjan, Liwan, Remraama and Marjan units that were available for sale have been sold. The official confirmed that all the property projects are in adherence with Real Estate Regulatory Agency (RERA) requirements and the funds are maintained in escrow accounts.

Earlier during the month, the developer mentioned that construction work at the Remraam community is progressing as scheduled, and the progress will be achieved on all four phases of the development. The contractors have completed the superstructure on several buildings to their full heights. About 90 percent of excavation works has also been completed, while the foundation for more than 70 percent of the buildings has also been done.

On completion, the Arabian-themed development will be a self-sufficient community with lush landscapes covering more than 85 percent of the development, and a range of amenities including a gymnasium, swimming pool, health club, steam rooms and sauna, basketball courts, community mall with entertainment outlets and restaurants, in addition to nursery, retail outlets, parks and walkways.

Labels: Latest News

"; According to a JP Morgan report, a surplus of 31,000 residential units could be recorded in Dubai, mainly due to the decline in expatriate population, while the shortage of units in Abu Dhabi is hoped to rise to 28,000 by the year-end.

In the short-term, the non-residential sector in the UAE will continue to be under pressure, owing to global financial crisis. However, historical shortage of both retail and commercial space in Abu Dhabi has kept tab against fall in leasing rates well below Dubai, reveals an investment bank report on MENA (Middle East North Africa) real estate.

Ever-since its peak during mid-2008, the average transaction volumes are down by 60 percent during the first half of 2009, compared to that during same period in 2008. Despite the slight pickup in transaction volumes recently, the supply overhand in Dubai property sector will touch 28,500 by end of the year, because of the modest economic forecast and negative population growth estimates, JP Morgan said.

Furthermore, after 2009, the JP Morgan says that the forecast of 3.5 percent population growth for Dubai is unlikely to absorb the surplus residential units, which according to Colliers International, will total to 25,000 per annum in the next three years.

However, given Dubai's large infrastructure investment, the city's positioning which makes it accessible to neighbouring economies out of which few are facing economic challenges, and Dubai being a liberal tax-free business-friendly destination, a surprise demand recovery from regional investors, exposed to less stable geo-political environments, cannot be ruled out, the Bank concludes.

Contrastingly, the short-term supply of homes in Abu Dhabi is fairly limited. The high occupancy levels are unlikely to ease from near 100 percent any time soon, the Bank said.

Labels: Dubai Real Estate, Latest News

"; About 400 projects, worth more than $300billion are either on hold or have been cancelled in the UAE, owing to global financial crisis, revealed Proleads Global.

Construction sector in the UAE will stabilize by the end of the year, and will show further sign of recovery by 2010. Several projects are underway in various sectors, due for completion by 2010-2011, the report said.

The study noticed that there is a slowdown in new projects in the commercial and retail sections, which healthcare and education projects are placed on hold more often than in the past. There is also slowdown in leisure and entertainment, while the rate of cancellations in the residential sector is on the increase.

The once-booming property sector of Dubai has been particularly hit by the downturn, while Abu Dhabi has been more resilient towards the effects of downturn.

At present there are more than 750 active projects in the UAE that are under construction, with almost 450 recently completed.

Proleads, in its February report, mentioned that 52.8 percent of its projects were on hold, while the rest $698billion worth projects are in progress.

Labels: Latest News, UAE

"; According to the latest quarterly Harbor Report, to be issued end of this month, the real estate sector will begin recovery early next year. The report has been issued by Harbor Real Estate, a brokerage company, also an integrate real estate service provider in Dubai.

The report indicates that although the market seems to have bottomed out, it will take many more months until we see an improvement in the market.

The Managing Director of Harbor, Mohanad al Wadiya, mentioned that the market is in a phase of fragile stabilization, and it is hard to predict at this stage, when exactly an improvement is likely, but it is generally hoped that this will happen during early 2010, although the pace of recovery is largely dependent on the global economic recovery and world economic events.

When the first half of Harbor Report was issued in Q1, the general mood was rather dull. But today it is evident that although the market is stressed, it is not getting any worse, and that in itself is good news. The efforts put in by the government and corporate institutions to beat the recession are slowly gaining grounds. With economists in China, Japan and USA, talking about early recovery signs, the economic growth is now on the horizon, and it looks promising to note that things will pick up by early 2010, Al Wadiya said.

The Harbor report is a quarterly report, which was first issued in April 2009. The second report will be issued end of this month, and will explain in-depth about trends and insider views of the real estate industry. The report has already received a positive response from industry professionals in the region.

Labels: Latest News

"; 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.

Labels: Dubai Real Estate, Latest News, Property Prices

"; 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.

Labels: Dubai City, Emaar, Latest News

"; 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.

Labels: Latest News, UAE

";

Labels: ETA-Star, Latest News

"; 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 ]

Labels: Latest News, Ras Al Khaima

"; 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.

Labels: Latest News, Market Trends

"; 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.

Labels: Latest News, Market Trends

"; 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.

Labels: Latest News, Middle-East

"; 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.

Labels: Latest News, Rentals

"; 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.

Labels: Ajman, Dubai Real Estate, Latest News

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

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

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

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

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

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

Labels: Dubai City, Investment Property, Latest News

"; 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.

• 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

"; 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.

Labels: Latest News, Rentals

"; 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.

Labels: Latest News, Middle-East

"; 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%

Labels: Latest News, Market Trends, Rentals

"; 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.

Labels: Dubai Real Estate, Latest News

"; 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.

Labels: Latest News, Middle-East, Water front

"; 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.

Labels: Latest News, Property Law

"; 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.

Labels: Dubai Marina, Latest News, Middle-East

"; 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.

Labels: Latest News, Market Trends

"; 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:

Labels: Dubai Real Estate, Latest News, Market Trends

"; 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.

Labels: Dubai Real Estate, Latest News

"; 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.

Labels: Latest News, Property Law

"; 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.

Labels: Latest News, New Developments

"; 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.

Labels: Latest News, Market Trends, UAE

"; 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.

Labels: Latest News, Property Law

"; 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.

Labels: Latest News, Nakheel, Palm Jumeirah

"; 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.

Labels: Dubai City, Latest News

"; 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.

Labels: Latest News, Nakheel

"; 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.

Labels: Latest News, Real Estate Projects

"; 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.

Labels: Dubai Real Estate, Latest News, Property Prices

"; 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 Residential Apartments (Dhs '000)

Rental Values of Residential Villas (Dhs '000)

Rental Values of Freehold Property (Dhs '000)

[Source : RERA]

Labels: Latest News, Rentals

"; 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.

Labels: Freehold Property, Latest News, Property Law

"; 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.

Labels: Latest News, Mortgages

"; 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.

Labels: Deyaar, Latest News

"; 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.

Labels: Latest News, Market Trends

"; 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.

Labels: Latest News, Omniyat

"; 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.

Labels: Jumeirah-Garden-City, Latest News