Tourism growth bring prosperity to Dubai property sector
Thursday, July 24, 2008
Real estate in Dubai continues to bring in prosperity to property sector recording double-digit annual revenues, the report said.
The property boom in Dubai is being driven by factors such as high population growth rates, increasing demand from expatriates, and strong regional liquidity.
Dubai is fast emerging as a real estate, financial and tourism hub, as well as an oasis of stability in a troubled region, reveals report. Taking into account the supply-demand imbalance and prices in real estate sector, it looks like the Dubai property sector will remain elevated during the next couple of years, and thereafter, the bulk of properties that are currently under construction will near completion.
The property sector continues to remain attractively priced, offering good return on investments. However, with the ambitious growth strategy of the emirate, there is a risk associated with continued heavy supply that could weigh on technical, the report states.
The government is also eager to double annual passenger movement from 8million to 15million by the year 2015. With the corporate being closely monitored by the sovereign, they operate as commercial entities and are not subjected to interference in their operations, says the report.
As for the potential risks, the report states that although realty sector slowdown has been long expected, it is yet to happen. But, once the new supply hits the market during next couple of years, a slowdown is likely within the sector, and the focus would then be shifted to other developing stories in the region.
The rapid pace of development is placing increased strain on the price and availability of construction materials and supply of labour, all of which could lead to considerable growth barrier.
Social BookmarkingThe property boom in Dubai is being driven by factors such as high population growth rates, increasing demand from expatriates, and strong regional liquidity.
According to a report by Lehman Brothers on "Dubai Inc: Credit Overview and Relative Valuation", tourism accounts for 30 percent of Dubai's GDP, with no sign of slow down being seen in near future in the tourism-oriented realty developments and increased airline services.
Dubai is fast emerging as a real estate, financial and tourism hub, as well as an oasis of stability in a troubled region, reveals report. Taking into account the supply-demand imbalance and prices in real estate sector, it looks like the Dubai property sector will remain elevated during the next couple of years, and thereafter, the bulk of properties that are currently under construction will near completion.
The property sector continues to remain attractively priced, offering good return on investments. However, with the ambitious growth strategy of the emirate, there is a risk associated with continued heavy supply that could weigh on technical, the report states.
The government is also eager to double annual passenger movement from 8million to 15million by the year 2015. With the corporate being closely monitored by the sovereign, they operate as commercial entities and are not subjected to interference in their operations, says the report.
As for the potential risks, the report states that although realty sector slowdown has been long expected, it is yet to happen. But, once the new supply hits the market during next couple of years, a slowdown is likely within the sector, and the focus would then be shifted to other developing stories in the region.
The rapid pace of development is placing increased strain on the price and availability of construction materials and supply of labour, all of which could lead to considerable growth barrier.
Labels: Dubai Real Estate, Latest News, Market Trends
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.
Social BookmarkingThe 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.
Social BookmarkingAccording 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.
Social BookmarkingIn the opinion of Matthew Green, the Research Director at Cluttons, UAE, if the government withdrew its promise to grant residency visas for freehold purchasers and their families, it would shun away several hundreds of expatriate buyers, who consider Dubai market to be safer against troubles than in their home countries.
These comments were made following the release of report by Fitch, the ratings firm, which identifies oversupply, and sustaining of foreign demand, as major challenges that Dubai realty sector is likely to witness in near future.
According to the report, if the supply does not surpass demand, prices of properties will decline, reducing revenues further, and this would leave a negative impact on credit profiles of developers.
There are high chances of late deliveries and even project cancellation, due to logistical constraints, that would ultimately result in better match between demand and supply, it is said.
According to analysts, although supply is fast catching up with demand, oversupply is not considered as major threat to the market. As far as supplies are concerned, there are two factors that affect supply -one is delays and the other is construction constraint. However, risks are expected to a certain extent, as supply is catching up with demand beginning next year.
According to Green, oversupply is not a major concern at this point, or for the next three years. Looking at the deliveries over the past two years, only 50 percent of the expected supply has been delivered on time. In 2007, for instance, only 30,000 units were handed over after completion, as against a forecast of 60,000 units in 2006. Delays are part of the Dubai property market, and in fact, it may help in the long-term by 'drip-feeding' supply, rather than dumping numerous new units all at once.
As for the office space, it is said that with a population of 1.4million, Dubai currently has, more or less, the same amount of office space under construction, as in Moscow or Shanghai. The office sector is likely to experience a “price correction” when the new supplies hit the market in the next two years.
Dubai is expected to draw considerable demand for properties, as the emirate is a major player in contributing to the $1.8trillion worth of projects that are likely to enter the GCC realty market next year.
The report by Fitch states that foreign demand is a major factor that contributes to Dubai property market, mainly due to the number of expatriates living and working in Dubai.
According to Green, the tension between US and Iran, will not affect the stable Dubai or Middle Eastern markets in any way, nor will it dampen foreign demand, as historically Iranians have been major investors in Dubai, and any escalation in the region, could actually contribute further demand for property.
Labels: Dubai Real Estate, Latest News
Dubai to house new property court
Thursday, July 10, 2008
More transparency likely in property-related matters, say developers
Dubai will house a new realty court which deals exclusively with property-related cases from September, announced a top official at the Dubai Courts.
The Judge Mohammed Yousuf A Sulaiman, the Deputy Director for Dubai Courts and Cassation Court's Senior Judge, has revealed that the Property Court will be established as per Law No.1 of year 2003, under the main section of the court called 'The First Instance Court.'
It will include jurisdictions over all properties in Dubai, except those associated to Dubai International Financial Center, which has its own judiciary system.
Yousuf said this is being done as per the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE, and Ruler of Dubai. Following the success of the Labour Court, this new court specializing in all property related matters is being launched.
The Chief of the Court of First Instance (Properties Court), Judge Abdul Qadir Mosa, will be responsible for setting up the property court.
At present all property-related cases are being tried under the Civil Law. In case of any new law being enforced within the jurisdiction of the property court, the law will override the Civil Law for all property cases, said the judge. The judgment passed in the property court, can be confronted in the Appellate Court.
There will be a minimum of ten judges in the property court, and the numbers would vary depending on the number of property-related cases.
Yousuf said that currently there are no cases pertaining to real estate issues that are pending at the Dubai Courts. The Dubai Courts do not hear rental disputes, which is solely being dealty by the Rent Committee of Dubai Municipality.
The establishment of this property court is expected to bring more transparency among developers in Dubai, while investors will continue to be inclined towards taking risk, agreed developers and analysts.
Following the announcement of establishment of the court, the Chief Executive of Amlak Finance, Arif Alharmi, commented that the establishment of the property court is a positive development as real estate market is heading towards maturity, and the value of transactions are on the rise.
Arab Richardson, the Nakheel Spokesperson, said that this court would help in efficiently dispensing matters pertaining to property ownership and mortgage enforcement. This move marks a part of futuristic development of legal process pertaining to property industry.
The Director of Research in EFG Hermes, Stephan Schurmann said that investors would be willing to take risks and there will be less illegal activities by developers. However, the question remains as to how well the court would be implemented and how the structure and setting up of the court would be.
The Chairman of Pearl Dubai, Abdul Majeed, agreed that it is a good initiative and will boost market confidence, and will bring more regulation and transparency to the market, while the property disputes too will be solved quickly.
The Tamweel CEO, Wasim Saifi, says that the initiative to create a separate court, by itself, shows the significance that the Dubai Government gives to realty sector. This specific court meant for realty sector will help in crossing hurdles bringing in greater transparency.
The court should work in co-ordination with RERA, rather than developers having to deal with multiple bodies, as at present the Land Department and RERA handles property cases. It should be brought under one umbrella, the Executive Director of ETA Star Properties, Abid Junaid, was quoted as saying.
Social BookmarkingDubai will house a new realty court which deals exclusively with property-related cases from September, announced a top official at the Dubai Courts.
The Judge Mohammed Yousuf A Sulaiman, the Deputy Director for Dubai Courts and Cassation Court's Senior Judge, has revealed that the Property Court will be established as per Law No.1 of year 2003, under the main section of the court called 'The First Instance Court.'
It will include jurisdictions over all properties in Dubai, except those associated to Dubai International Financial Center, which has its own judiciary system.
Yousuf said this is being done as per the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE, and Ruler of Dubai. Following the success of the Labour Court, this new court specializing in all property related matters is being launched.
The Chief of the Court of First Instance (Properties Court), Judge Abdul Qadir Mosa, will be responsible for setting up the property court.
At present all property-related cases are being tried under the Civil Law. In case of any new law being enforced within the jurisdiction of the property court, the law will override the Civil Law for all property cases, said the judge. The judgment passed in the property court, can be confronted in the Appellate Court.
There will be a minimum of ten judges in the property court, and the numbers would vary depending on the number of property-related cases.
Yousuf said that currently there are no cases pertaining to real estate issues that are pending at the Dubai Courts. The Dubai Courts do not hear rental disputes, which is solely being dealty by the Rent Committee of Dubai Municipality.
The establishment of this property court is expected to bring more transparency among developers in Dubai, while investors will continue to be inclined towards taking risk, agreed developers and analysts.
Following the announcement of establishment of the court, the Chief Executive of Amlak Finance, Arif Alharmi, commented that the establishment of the property court is a positive development as real estate market is heading towards maturity, and the value of transactions are on the rise.
Arab Richardson, the Nakheel Spokesperson, said that this court would help in efficiently dispensing matters pertaining to property ownership and mortgage enforcement. This move marks a part of futuristic development of legal process pertaining to property industry.
The Director of Research in EFG Hermes, Stephan Schurmann said that investors would be willing to take risks and there will be less illegal activities by developers. However, the question remains as to how well the court would be implemented and how the structure and setting up of the court would be.
The Chairman of Pearl Dubai, Abdul Majeed, agreed that it is a good initiative and will boost market confidence, and will bring more regulation and transparency to the market, while the property disputes too will be solved quickly.
The Tamweel CEO, Wasim Saifi, says that the initiative to create a separate court, by itself, shows the significance that the Dubai Government gives to realty sector. This specific court meant for realty sector will help in crossing hurdles bringing in greater transparency.
The court should work in co-ordination with RERA, rather than developers having to deal with multiple bodies, as at present the Land Department and RERA handles property cases. It should be brought under one umbrella, the Executive Director of ETA Star Properties, Abid Junaid, was quoted as saying.
Labels: Dubai Real Estate, Latest News, Property Law
Dubai, Northern Emirates realty markets to stabilize by 2010
Friday, July 04, 2008
According to a leading developer, the property market in Dubai and other Northern Emirates is likely to stabilize towards 2010, attaining a sustainable balance between investors and property owners.
The realty sector in the United Arab Emirates has witnessed an unparalleled growth over the recent years, due to the frenetic and speculative property market in Dubai, surpassing the rest of the Arabian Gulf States together with ease, said Mohammed Nimer, the CEO of MAG Group Property Development.
The construction boom will reach its heights during 2009, with about $3billion worth of realty under construction. Thereafter, the value of market is likely to fall back to the levels during 2007, of about $1billion, as majority of units are delivered. Hence, this is hoped to subdue the surging market prices, he added.
According to CEO of MAG Group, homeowners currently account for 30 percent of properties sold at launch. Real estate sales are currently being largely dominated by short-term investors, rather than end users. This has led to inflation in prices, as the units are 'sold-on' premium several times prior to completion.
The evidence of UAE construction boom reaching its peak next year is evident in the database of Proleads, a Dubai-based research company, which keeps tab on major construction projects across the region from initial planning to completion.
The database displays about 80 units blocks individually budgeted at a value of $100million now under construction in the Northern Emirates and Dubai, with a total value of $4billion. A dramatic decline is seen in the database on announced or newly planned constructions on similar buildings for next year and by 2010, dozens of projects are shown to reach completion.
With most projects still being under construction and the next bunch of supplies hitting the market in 2009-10 will help in bringing about some stability to the market, Nimer pointed out.
However, this is not likely to provide a major respite from mounting prices, as certain other factors such as ever- is not something to be expected in the short term, Nimer concludes.
Social BookmarkingThe realty sector in the United Arab Emirates has witnessed an unparalleled growth over the recent years, due to the frenetic and speculative property market in Dubai, surpassing the rest of the Arabian Gulf States together with ease, said Mohammed Nimer, the CEO of MAG Group Property Development.
The construction boom will reach its heights during 2009, with about $3billion worth of realty under construction. Thereafter, the value of market is likely to fall back to the levels during 2007, of about $1billion, as majority of units are delivered. Hence, this is hoped to subdue the surging market prices, he added.
According to CEO of MAG Group, homeowners currently account for 30 percent of properties sold at launch. Real estate sales are currently being largely dominated by short-term investors, rather than end users. This has led to inflation in prices, as the units are 'sold-on' premium several times prior to completion.
The evidence of UAE construction boom reaching its peak next year is evident in the database of Proleads, a Dubai-based research company, which keeps tab on major construction projects across the region from initial planning to completion.
The database displays about 80 units blocks individually budgeted at a value of $100million now under construction in the Northern Emirates and Dubai, with a total value of $4billion. A dramatic decline is seen in the database on announced or newly planned constructions on similar buildings for next year and by 2010, dozens of projects are shown to reach completion.
With most projects still being under construction and the next bunch of supplies hitting the market in 2009-10 will help in bringing about some stability to the market, Nimer pointed out.
However, this is not likely to provide a major respite from mounting prices, as certain other factors such as ever- is not something to be expected in the short term, Nimer concludes.
Labels: Dubai Real Estate, Latest News, Market Trends
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.
Social BookmarkingLocated 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.
Social BookmarkingMarwin 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.
Social BookmarkingThe UAE realty market has seen major growth over the past couple of years, due to several factors at the micro and macro economic levels. However, the prices of real estate products is likely to increase during the coming years, with the high demand from expatriates, and due to increase in cost of labour and construction materials, says Bilal A Kanbar, Business Line Manager, Impaqta.
According to a property report released by a Saudi-based management advisory services company and Great Properties, a real estate sales and marketing agency, based in Dubai, the real estate boom in UAE is likely to face a major hindrance which will seriously affect completion of projects across the emirates.
As per the report, one major problem is the ready-mix concrete suppliers, struggling with huge backlog due to massive shortage in cement supplies. To add to this, the prices of cement and steel have surged by 50 and 70 percent respectively last year. Increasing labour costs, which has gone up by three times over last year, is another factor.
The report states that delay in delivery of new properties has resulted in rent and price increases, by 40 to 50 percent over the past couple of years in Dubai.
According to Kanbir, most projects are still under construction, and the next series of supply will hit the market by 2010, and this will is expected to bring in stabilization in property prices.
Labels: Dubai Real Estate, Latest News, Market Trends
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.
Social BookmarkingThe 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.
Social BookmarkingAmong 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