Al Barakah places new option before property investors
Tuesday, June 23, 2009
Al Barakah, the real estate developer, who has been much in the new off-late for allegedly bouncing cheques worth more than Dh.40mn, has now requested its investors to drop all their claims against the company, and in return, the CEO has promised shares fin a new holding company.
The proposal was circulated by the company to all its investors, and advertisements were placed in local newspapers, inviting the investors to submit claims to Horwath MAK, an auditing company in Dubai.
According to Tariq Minhaj, an Al Barakah representative, the company is now planning to build its long-delayed projects, with a UK-based construction company.
Several hundreds of investors suffered losses after investing on off-plan properties in about half a dozen towers that are yet to see the light of the day. The investors were lured by the guaranteed buy-back scheme, wherein the company had pledged to re-acquire its properties within few months after sale, with a 50 percent profit on the down-payment.
Few of the investors were given post-dated cheques as a guarantee, while few others were given only MoUs (Memorandum of Understandings). Once the cheques began bouncing, the Chief Executive of the company, Imran Khan went hiding, and now the police is in search of him.
Al Barakah has a dozen projects on the drawing board in Dubai and Ajman, including the 'tallest tower to-be' in Ajman.
The proposal was circulated by the company to all its investors, and advertisements were placed in local newspapers, inviting the investors to submit claims to Horwath MAK, an auditing company in Dubai.
According to Tariq Minhaj, an Al Barakah representative, the company is now planning to build its long-delayed projects, with a UK-based construction company.
Several hundreds of investors suffered losses after investing on off-plan properties in about half a dozen towers that are yet to see the light of the day. The investors were lured by the guaranteed buy-back scheme, wherein the company had pledged to re-acquire its properties within few months after sale, with a 50 percent profit on the down-payment.
Few of the investors were given post-dated cheques as a guarantee, while few others were given only MoUs (Memorandum of Understandings). Once the cheques began bouncing, the Chief Executive of the company, Imran Khan went hiding, and now the police is in search of him.
Al Barakah has a dozen projects on the drawing board in Dubai and Ajman, including the 'tallest tower to-be' in Ajman.
Labels: Real Estate News
Memon Investments embarks on Dh1.3bn green projects
Wednesday, June 03, 2009
Leading property developer in Dubai, Memon Investments, also a unit of Memon Group of companies has announced that it plans to continue with its planned Dh.1.3bn worth construction of green buildings comprising five new projects at the Jumeirah Village.
The Managing Director of Memon Investments, Ahmed Shaikhani, said that the efforts by the company to implement green projects are a part of the company's commitment towards customers for their support Memon's project.
"By taking these measures, we are increasing the potential of our projects to yield maximum investment returns, while also effectively reducing the ecological footprint, one of the common impacts of rapid advancement of developing economies such as Dubai," said Shaikhani.
The Managing Director of Memon Investments, Ahmed Shaikhani, said that the efforts by the company to implement green projects are a part of the company's commitment towards customers for their support Memon's project.
"By taking these measures, we are increasing the potential of our projects to yield maximum investment returns, while also effectively reducing the ecological footprint, one of the common impacts of rapid advancement of developing economies such as Dubai," said Shaikhani.
Labels: Environment-friendly, Real Estate News
Nakheel, DMCC announces merger
Tuesday, June 02, 2009
The property arm of Dubai Multi-Commodities Centre (DMCC) has entered into merger with Nakheel, one of the largest property developers in the emirate. This is one of the latest mergers from Dubai's property companies, as they restructure their operations to reduce costs.
A Nakheel spokesman revealed that all property-related operations by DMCC have been consolidated with Nakheel to accommodate present market conditions and make maximum use of the resources and expertise. As both the companies are owned by Dubai World, which is owned by Dubai Government, Nakheel will be involved in all projects developed by DMCC.
One of the main real estate projects by DMCC is the Jumeirah Lake Towers, a community office, residential and hotel towers. The Jumeirah Lake Towers will comprise 87 towers on the whole, and is due for completion by 2011.
The DMCC-Nakheel merger is the second to take place this year, among government-backed property developer. Earlier this year, Dubai Holding had merged the admin and back-office functions of Dubai Properties, Sama Dubai and Mizin. More mergers are likely in the real estate sector, as the companies continue to involve in cost-cutting measures, said Robert McKinnon, Head of Research at Al Mal Capital.
With most property developers being cash-strapped, with the banks restricting lending and homebuyers defaulting on payments, the main aim of consolidation is to pool resources to enable firms survive the downtown.
Nakheel had merged a series of its business units to form five entities, during February this year. Developers are of the opinion that such mergers can help them cope with the shrinking number of projects.
A Nakheel spokesman revealed that all property-related operations by DMCC have been consolidated with Nakheel to accommodate present market conditions and make maximum use of the resources and expertise. As both the companies are owned by Dubai World, which is owned by Dubai Government, Nakheel will be involved in all projects developed by DMCC.
One of the main real estate projects by DMCC is the Jumeirah Lake Towers, a community office, residential and hotel towers. The Jumeirah Lake Towers will comprise 87 towers on the whole, and is due for completion by 2011.
The DMCC-Nakheel merger is the second to take place this year, among government-backed property developer. Earlier this year, Dubai Holding had merged the admin and back-office functions of Dubai Properties, Sama Dubai and Mizin. More mergers are likely in the real estate sector, as the companies continue to involve in cost-cutting measures, said Robert McKinnon, Head of Research at Al Mal Capital.
With most property developers being cash-strapped, with the banks restricting lending and homebuyers defaulting on payments, the main aim of consolidation is to pool resources to enable firms survive the downtown.
Nakheel had merged a series of its business units to form five entities, during February this year. Developers are of the opinion that such mergers can help them cope with the shrinking number of projects.
Labels: Nakheel, Real Estate News
Tamweel to begin sale of re-possessed properties
Thursday, May 21, 2009
The largest home-lender by volume, Tamweel, is also the first to sell re-possessed properties on completion of legal formalities.
Due to legal uncertainties, mortgage lenders were hesitant to hold forced sales or auctions during the past, as the system has never been tested. Instead, the lenders have negotiated with distressed mortgage customers to try and recover some capital to avoid costly legal proceedings.
According to Mohammed Sultan Thani, the Assistant Director General at Dubai Land Department, no repossessions have been completed by UAE banks, which would oversee the sale of any re-possessed properties under the Mortgage 2008 Law. The banks are seeking to resolve things on their own.
The Chief Executive of Tamweel, Wasim Safi, said that Tamweel would go ahead with the next step of disposal of properties, after completing the legal procedures of foreclosure. In fact, Tamweel has already begun foreclosure process for few customers, Saifi added.
He agreed that a growing number of mortgage customers were behind with payments. Amlak and Tamweel account for more than half of the mortgage market in the country, worth about Dh.35bn. The rest Dh.25bn is divided among Abu Dhabi Commercial Bank, HSBC, Emirates NBD and Standard Chartered and several smaller players.
Both Amlak and Tamweel had stopped new mortgage lending in November, when trading in their stocks were suspended. They will shortly receive approval to restructure and secure their financing within a few weeks, revealed Sheikh Khaled bin Zayed, Chairman of Tamweel.
Due to legal uncertainties, mortgage lenders were hesitant to hold forced sales or auctions during the past, as the system has never been tested. Instead, the lenders have negotiated with distressed mortgage customers to try and recover some capital to avoid costly legal proceedings.
According to Mohammed Sultan Thani, the Assistant Director General at Dubai Land Department, no repossessions have been completed by UAE banks, which would oversee the sale of any re-possessed properties under the Mortgage 2008 Law. The banks are seeking to resolve things on their own.
The Chief Executive of Tamweel, Wasim Safi, said that Tamweel would go ahead with the next step of disposal of properties, after completing the legal procedures of foreclosure. In fact, Tamweel has already begun foreclosure process for few customers, Saifi added.
He agreed that a growing number of mortgage customers were behind with payments. Amlak and Tamweel account for more than half of the mortgage market in the country, worth about Dh.35bn. The rest Dh.25bn is divided among Abu Dhabi Commercial Bank, HSBC, Emirates NBD and Standard Chartered and several smaller players.
Both Amlak and Tamweel had stopped new mortgage lending in November, when trading in their stocks were suspended. They will shortly receive approval to restructure and secure their financing within a few weeks, revealed Sheikh Khaled bin Zayed, Chairman of Tamweel.
Labels: Real Estate News, Sales, Tamweel
Compensation offered for affected property owners in Dubai
Tuesday, April 28, 2009
The Deputy Ruler of Dubai and the Chairman of Dubai Municipality, Sheikh Hamdan Bin Rashid Al Maktoum has announced Dh.67.97mn as compensation to citizens possessing properties affected by public planning projects, designed for re-planning and development of the city of Dubai.
The Director General of Municipality, Eng. Hussein Nasser Lootah, said that the government is taking necessary measures to fast-track the disbursement of compensation to the owners of these lands located in several areas of Dubai.
This initiative is a part of the effort by the government to develop various areas in the emirate.
Few of the affected areas are the Jumeirah-1, Hor Al Anz, Al Jafilliya, Al Muraqqabat, Al Refa'ah, Al Rawyah, Al Muteena, Abu Hail, Mankhool and Al Quoz-2.
More information in this regard can be obtained by contacting the following address:
Ismail Meladi
Senior Media Officer, Media Section
Corporate Marketing & Relations Dept.
Dubai Municipality
+971 4 2064657
+971 4 2232188
+971 50 6341075
ipparambil@dm.gov.ae
The Director General of Municipality, Eng. Hussein Nasser Lootah, said that the government is taking necessary measures to fast-track the disbursement of compensation to the owners of these lands located in several areas of Dubai.
This initiative is a part of the effort by the government to develop various areas in the emirate.
Few of the affected areas are the Jumeirah-1, Hor Al Anz, Al Jafilliya, Al Muraqqabat, Al Refa'ah, Al Rawyah, Al Muteena, Abu Hail, Mankhool and Al Quoz-2.
More information in this regard can be obtained by contacting the following address:
Ismail Meladi
Senior Media Officer, Media Section
Corporate Marketing & Relations Dept.
Dubai Municipality
+971 4 2064657
+971 4 2232188
+971 50 6341075
ipparambil@dm.gov.ae
Labels: Dubai City, Real Estate News
Abu Dhabi property sector welcomes foreign buyers for the first time
Monday, April 13, 2009
Al Reef Development by the Manazel Real Estate is progressing as scheduled, and is the first property project to deliver homes in Abu Dhabi, which can be purchased by foreigners. Also, the Al Raha Beach, by Aldar Properties, is also on its way towards completion of its first phase of the development.
Al Reef includes 2380 villas and 1810 apartments near the Abu Dhabi International Airport. The first phase of Al Reef villas will be delivered during the third and fourth quarters of this year, while the other phases are scheduled between March and the end of next year. This includes the 46 five-storey apartment buildings of Al Reef Downtown. Al Reef villas and apartments were sold out soon after their launch in 2006.
Manazel, a private developer, is also likely to hand-over the keys of Dunes Village, a 942 apartment project in Dubai, next week to investors. The Dunes Village comprises 19 five-storey buildings in Dubai Investment Park on the Emirates Road. This will be completed by 15th April.
"Dunes and Al Reef are nearly complete, and nothing of it has been altered," said Zeyad al Bakeri, Senior Project Manager at Manazel. However, due to the recession in the property sector, the company had to reschedule its ambitious project, Building Materials City (BMC), extending the construction period to five years, instead of three.
The BMC includes 4151 apartments, offices and a shopping mall. The mall and the two prestige towers are under construction. The towers would be completed in three phases over five years, instead of two-and-a-half years as originally planned.
Al Reef includes 2380 villas and 1810 apartments near the Abu Dhabi International Airport. The first phase of Al Reef villas will be delivered during the third and fourth quarters of this year, while the other phases are scheduled between March and the end of next year. This includes the 46 five-storey apartment buildings of Al Reef Downtown. Al Reef villas and apartments were sold out soon after their launch in 2006.
Manazel, a private developer, is also likely to hand-over the keys of Dunes Village, a 942 apartment project in Dubai, next week to investors. The Dunes Village comprises 19 five-storey buildings in Dubai Investment Park on the Emirates Road. This will be completed by 15th April.
"Dunes and Al Reef are nearly complete, and nothing of it has been altered," said Zeyad al Bakeri, Senior Project Manager at Manazel. However, due to the recession in the property sector, the company had to reschedule its ambitious project, Building Materials City (BMC), extending the construction period to five years, instead of three.
The BMC includes 4151 apartments, offices and a shopping mall. The mall and the two prestige towers are under construction. The towers would be completed in three phases over five years, instead of two-and-a-half years as originally planned.
Labels: Abu Dhabi, Real Estate News
Property Regulatory Authority for Middle East underway
Saturday, March 28, 2009
According to senior officials at the Dubai Land Department, plans are underway for establishment of a Middle East Real Estate Society (Meres).
The real estate community groups, which include developers, brokers, investors and valuers, are likely to join together with their GCC counterparts to from a region-wide entity.
A real estate regulatory authority, which spreads across the whole region, will surely bear a positive impact on the economic conditions of the region, and in the wider Arab world. This move is aimed at establishing an Arabian Real Estate Society, as soon as possible, said the statement from the Dubai Land Department.
The Federal National Council revealed plans for UAE Real Estate Regulatory Authority. The officials at the Dubai Land Department and Dubai's RERA supported the plan, stating that such plans were positive, as the establishment of a federal regulating body, would promote consolidation among all seven emirates.
The Chief Executive of RERA, Marwan bin Ghalita, said that a federal body would help real estate professionals immensely, as developers are then free to work in any of the emirates, and they need to deal with just one authority.
At present, however, there is no federal body to monitor the property sector in the UAE. Individual emirates such as Dubai and Sharjah have established their own regulators, while Ajman recently announced the establishment of its own authority.
The real estate community groups, which include developers, brokers, investors and valuers, are likely to join together with their GCC counterparts to from a region-wide entity.
A real estate regulatory authority, which spreads across the whole region, will surely bear a positive impact on the economic conditions of the region, and in the wider Arab world. This move is aimed at establishing an Arabian Real Estate Society, as soon as possible, said the statement from the Dubai Land Department.
The Federal National Council revealed plans for UAE Real Estate Regulatory Authority. The officials at the Dubai Land Department and Dubai's RERA supported the plan, stating that such plans were positive, as the establishment of a federal regulating body, would promote consolidation among all seven emirates.
The Chief Executive of RERA, Marwan bin Ghalita, said that a federal body would help real estate professionals immensely, as developers are then free to work in any of the emirates, and they need to deal with just one authority.
At present, however, there is no federal body to monitor the property sector in the UAE. Individual emirates such as Dubai and Sharjah have established their own regulators, while Ajman recently announced the establishment of its own authority.
Labels: Middle-East, Real Estate News
Dh7.3bn sidelined for distressed property assets in GCC
Tuesday, March 24, 2009
About Dh.7.3bn worth of equity is awaiting to be invested in distressed property assets, across the GCC, particularly in Abu Dhabi, Saudi Arabia and Qatar, reveals Jones Lang LaSalle, leading property consultants.
The funds, which were raised during the initial three quarters of last year, was kept on hold, ever-since the collapse of Lehman Brothers in September, and the subsequent regional market downturn.
The Head of Investment Transactions at Jones Lang LaSalle, Ian Ohan, says that investment opportunities are now being sought for these funds and more capital will begin accumulating, once the investors regain their composure. Even investment funds that were previously focused on international market are now being directed regionally. The funds are now being pooled among high-net-worth individuals, investment banks, and institutional investors.
"Investors today are clearly focusing on taking advantage of the market downturn, by targeting prime distressed asset sales on an opportunity basis," said Ohan.
Investors are also seeking assets with long-term contractual income attached, such as the 10-year plus leases attached with strong covenants, he added.
Regional investors are good entrepreneurs, and unlike in other international markets, there is active real estate deals taking place, despite the very low volumes, compared to the peak witnessed in 2008, he pointed out.
Investors seem more cautious about investing in Dubai property market, and prefer Qatar, Abu Dhabi, and Saudi Arabia, where, the property cycle is at a less advanced stage.
However, there is no denying that Dubai investors are still actively cherry picking opportunities that could represent stand-out deals as the region's economies stabilize, Ohan said.
"The year 2009 will be a challenging year in all aspects, and the economic situation will get worse, before it gets better," Ohan said.
The company has commenced a two-month study to identify opportunities for taking over projects that offer long-term revenue.
The President of the company, James Tate, says that there is a two-year buying opportunity for property assets in downturn markets. The study would focus on opportunities in residential and commercial sectors, targeting projects that are half or fully completed.
The funds, which were raised during the initial three quarters of last year, was kept on hold, ever-since the collapse of Lehman Brothers in September, and the subsequent regional market downturn.
The Head of Investment Transactions at Jones Lang LaSalle, Ian Ohan, says that investment opportunities are now being sought for these funds and more capital will begin accumulating, once the investors regain their composure. Even investment funds that were previously focused on international market are now being directed regionally. The funds are now being pooled among high-net-worth individuals, investment banks, and institutional investors.
"Investors today are clearly focusing on taking advantage of the market downturn, by targeting prime distressed asset sales on an opportunity basis," said Ohan.
Investors are also seeking assets with long-term contractual income attached, such as the 10-year plus leases attached with strong covenants, he added.
Regional investors are good entrepreneurs, and unlike in other international markets, there is active real estate deals taking place, despite the very low volumes, compared to the peak witnessed in 2008, he pointed out.
Investors seem more cautious about investing in Dubai property market, and prefer Qatar, Abu Dhabi, and Saudi Arabia, where, the property cycle is at a less advanced stage.
However, there is no denying that Dubai investors are still actively cherry picking opportunities that could represent stand-out deals as the region's economies stabilize, Ohan said.
"The year 2009 will be a challenging year in all aspects, and the economic situation will get worse, before it gets better," Ohan said.
The company has commenced a two-month study to identify opportunities for taking over projects that offer long-term revenue.
The President of the company, James Tate, says that there is a two-year buying opportunity for property assets in downturn markets. The study would focus on opportunities in residential and commercial sectors, targeting projects that are half or fully completed.
Labels: Middle-East, Real Estate News
Deyaar unveils 2009 Business Strategy
Thursday, March 19, 2009
Deyaar Development has sketched out a strategy for 2009, to reduce the default rates by the company, revealed the Chief Executive, Markus Giebel.
"About 60 percent of our customers have come back to us, saying they were unable to pay up on their property. We hope that our new strategy would help in bringing down our existing default rates to around 20 percent," Giebel said.
He said Deyaar will not see any major impact on its profitability, as it has adopted a consolidation strategy, and projected that the 2009 projects of the company would be about Dh.500mn touching 2007 levels.
"Profits and revenues are not the major issues for us today. What is more important, currently, is to ensure sufficient cash flow, and help our customers facing financial difficulties," Giebel said.
As per Deyaar's new consolidation strategy, the Deyaar Park, Deyaar Enclave and Mirar Residences, comprising four million square foot area in Dubai, would be consolidated with the rest of Deyaar portfolio.
Investors in these projects will be given the option to transfer their ownership to projects which would be completed on a fast-track basis.
Deyaar plans to do a project consolidation of up to 10 percent cash-back of the paid-up amount, and a 50 percent consolidation option on Deyaar Park, Mirar Residences and Deyaar Enclave. On Deyaar Enclave, the company plans to give the option of 100 percent pay-back to the investor.
"We will first return the money to the investor and go to RERA, saying we have no liability. Only then will RERA release the Escrow," Giebel said.
The prices of units that were sold at the time of launch, or during the initial stages of construction, will be reduced inline with lower construction costs, reveals the new strategy by Deyaar.
For instance, the prices of Deyaar's Oxford Tower will be reduced by an average of 30 percent from Dh.2450 per square feet to Dh.1715 per square feet. In Fairview Residency, price reductions will be an average of 25 percent from Dh.1845 per square foot to Dh.1385 per square foot.
The Bristol Residence sales prices will be reduced by an average of 25 percent from Dh.2079 per square foot to Dh.1560 per square foot. The Bristol Office prices will be reduced by 30 percent on an average from Dh.2788 per square foot to Dh.1950 per square foot.
Deyaar will offer lower installments to customers on certain units through soft payment plans, and this will be implemented by adjusting original payment schedule, permitting customers facing liquidity problems to avoid default and meeting their obligations.
Giebel also mentioned that in certain locations with infrastructure problems, the company plans to give buyers an option to swap for properties in other locations. However, this option will be on a purely voluntary basis, and this will give customers the option to transfer ownership to premium projects in prime locations. It will also allow them to consolidate their total outstanding payments.
Deyaar pointed out that it has not cancelled any of its projects so far, not are there any defaults being recorded. Deyaar's strategy is inline with regulations by RERA, and all of its projects will adhere to the Escrow Law. The company is also under negotiations with financial institutions to develop special mortgage packages for customers and has already signed a deal with Dubai Islamic Bank, he concluded.
"About 60 percent of our customers have come back to us, saying they were unable to pay up on their property. We hope that our new strategy would help in bringing down our existing default rates to around 20 percent," Giebel said.
He said Deyaar will not see any major impact on its profitability, as it has adopted a consolidation strategy, and projected that the 2009 projects of the company would be about Dh.500mn touching 2007 levels.
"Profits and revenues are not the major issues for us today. What is more important, currently, is to ensure sufficient cash flow, and help our customers facing financial difficulties," Giebel said.
As per Deyaar's new consolidation strategy, the Deyaar Park, Deyaar Enclave and Mirar Residences, comprising four million square foot area in Dubai, would be consolidated with the rest of Deyaar portfolio.
Investors in these projects will be given the option to transfer their ownership to projects which would be completed on a fast-track basis.
Deyaar plans to do a project consolidation of up to 10 percent cash-back of the paid-up amount, and a 50 percent consolidation option on Deyaar Park, Mirar Residences and Deyaar Enclave. On Deyaar Enclave, the company plans to give the option of 100 percent pay-back to the investor.
"We will first return the money to the investor and go to RERA, saying we have no liability. Only then will RERA release the Escrow," Giebel said.
The prices of units that were sold at the time of launch, or during the initial stages of construction, will be reduced inline with lower construction costs, reveals the new strategy by Deyaar.
For instance, the prices of Deyaar's Oxford Tower will be reduced by an average of 30 percent from Dh.2450 per square feet to Dh.1715 per square feet. In Fairview Residency, price reductions will be an average of 25 percent from Dh.1845 per square foot to Dh.1385 per square foot.
The Bristol Residence sales prices will be reduced by an average of 25 percent from Dh.2079 per square foot to Dh.1560 per square foot. The Bristol Office prices will be reduced by 30 percent on an average from Dh.2788 per square foot to Dh.1950 per square foot.
Deyaar will offer lower installments to customers on certain units through soft payment plans, and this will be implemented by adjusting original payment schedule, permitting customers facing liquidity problems to avoid default and meeting their obligations.
Giebel also mentioned that in certain locations with infrastructure problems, the company plans to give buyers an option to swap for properties in other locations. However, this option will be on a purely voluntary basis, and this will give customers the option to transfer ownership to premium projects in prime locations. It will also allow them to consolidate their total outstanding payments.
Deyaar pointed out that it has not cancelled any of its projects so far, not are there any defaults being recorded. Deyaar's strategy is inline with regulations by RERA, and all of its projects will adhere to the Escrow Law. The company is also under negotiations with financial institutions to develop special mortgage packages for customers and has already signed a deal with Dubai Islamic Bank, he concluded.
Labels: Deyaar, Mortgages, Real Estate News
Developer modifies Jumeirah Gardens project to suit market needs
Tuesday, March 10, 2009
Meeras Development plans to speed-up the Dh.350bn Jumeirah Gardens project, upon stabilization of real estate market.
In view of the rapid changes in the property market, and owing to global economic conditions, Meraas Development is now focusing on adapting its master-plan, designs and product mix, inline with present market conditions.
The company, in its statement, said that it plans to redefine the short-term strategy and approach to focus on developing initial phases of Jumeirah Gardens, while also confirming its commitment towards developing an integrated city in the heart of Dubai. The project, when progressed in phases, would provide an opportunity for the company, to analyze investor interest and develop details of the master plan and state-of-the-art infrastructure.
Launched in October 2008, the Jumeirah Gardens projects by Meraas is a mixed-use development, including seven district areas spread across an 110mn square feet land area. Located along the northern end of Sheikh Zayed Road, between Safa Park and Diyafa Street, the project would require 12 years for completion.
The existing site would be re-developed to create a mixed-use freehold and leasehold development, which will be an integrated city within city. A transportation network will link low, medium and high-density areas with business, retail, residential, leisure and recreational components.
Covering about 820,000 square meters, the phase one of the project would include six main blocks of low, mid and high-rice office, residential and retail buildings, two hotels, and high-end shopping space.
The developer plans eight buildings in Jumeirah Gardens, including One Park Avenue, One Dubai, and Park Gate, with six buildings. The project aims to cater to a population of 50,000 to 60,000 residents.
In view of the rapid changes in the property market, and owing to global economic conditions, Meraas Development is now focusing on adapting its master-plan, designs and product mix, inline with present market conditions.
The company, in its statement, said that it plans to redefine the short-term strategy and approach to focus on developing initial phases of Jumeirah Gardens, while also confirming its commitment towards developing an integrated city in the heart of Dubai. The project, when progressed in phases, would provide an opportunity for the company, to analyze investor interest and develop details of the master plan and state-of-the-art infrastructure.
Launched in October 2008, the Jumeirah Gardens projects by Meraas is a mixed-use development, including seven district areas spread across an 110mn square feet land area. Located along the northern end of Sheikh Zayed Road, between Safa Park and Diyafa Street, the project would require 12 years for completion.
The existing site would be re-developed to create a mixed-use freehold and leasehold development, which will be an integrated city within city. A transportation network will link low, medium and high-density areas with business, retail, residential, leisure and recreational components.
Covering about 820,000 square meters, the phase one of the project would include six main blocks of low, mid and high-rice office, residential and retail buildings, two hotels, and high-end shopping space.
The developer plans eight buildings in Jumeirah Gardens, including One Park Avenue, One Dubai, and Park Gate, with six buildings. The project aims to cater to a population of 50,000 to 60,000 residents.
Labels: Construction Projects, Jumeirah-Garden-City, Real Estate News
New property service charges regulations in March
Friday, February 27, 2009
Four new regulations are likely to be announced in Dubai next month, following which, property owners in Dubai, can expect a respite from increasing service charges, announced RERA (Real Estate Regulatory Authority) yesterday.
As per the proposed new rules, service charges for buildings that have been delivered already, will be frozen at rates that prevailed last year, provided, the current rates are less than that of last year's or have been approved by RERA.
The freeze will remain valid until the first general assembly of Owners Association, due to happen within three months of registration.
Service charges for buildings that are due for hand-over soon, or are in the process of being handed over, will also be subject to approval by RERA.
The owners of buildings that have been already handed over, or are due for hand-over, will have to pay service charges until the owners approve the service charges decided during the General Assembly. Service charges already paid, will have to be adjusted to meet the revised rates.
Speaking on this issue, Reinaldo, Director of Fine and Country, said that developers need to understand that property owners are stakeholders on the development, and that their role is vital. Without the Owners Association, there will be no transparency on the dealings.
As per the proposed new rules, service charges for buildings that have been delivered already, will be frozen at rates that prevailed last year, provided, the current rates are less than that of last year's or have been approved by RERA.
The freeze will remain valid until the first general assembly of Owners Association, due to happen within three months of registration.
Service charges for buildings that are due for hand-over soon, or are in the process of being handed over, will also be subject to approval by RERA.
The owners of buildings that have been already handed over, or are due for hand-over, will have to pay service charges until the owners approve the service charges decided during the General Assembly. Service charges already paid, will have to be adjusted to meet the revised rates.
Speaking on this issue, Reinaldo, Director of Fine and Country, said that developers need to understand that property owners are stakeholders on the development, and that their role is vital. Without the Owners Association, there will be no transparency on the dealings.
Labels: Property Law, Real Estate News
Leading property developers offer flexi-payment options to investors
Friday, February 20, 2009
Leading property developers in Dubai and Northern Emirates have come up with the option of easy payment schedule for investors and end-users to off-set the impact of credit crunch.
With the International Property Show 2009 (IPS 2009) entering its second day, and the visitors showing up to feel the pulse of property market, the organizer of the show, Dawood Al Shirawi, said that holding the show during such a difficult phase is a huge success, and the organizers hope to sign few serious deals during and after the show.
He expressed confidence that towards the end of 2009, the property market would recover from the crisis and new regulations will help in consolidating the industry even further.
One of the leading freehold property developers in Dubai and Northern Emirates, Chapal, has announced an extension of one year for payment schedules to property buyers in Dubai and Ajman. By extending such an offer, Chapal aims to relieve its clients during tough times of economic crisis.
Chapal mentioned that this payment extension plan would benefit several thousands of investors and property end-users who booked villas and apartments in freehold projects of Chapal in Dubai Sports City, Emirates City Ajman, Emirates Lakes Towers (Ajman), Jumeirah Village Dubai, Chapal Flora Residences (Ajman).
The payment relaxation terms are currently being reviewed to support buyers of plot in master development in Ajman. IPS has been earmarked as the biggest transactional property event in the region.
With the International Property Show 2009 (IPS 2009) entering its second day, and the visitors showing up to feel the pulse of property market, the organizer of the show, Dawood Al Shirawi, said that holding the show during such a difficult phase is a huge success, and the organizers hope to sign few serious deals during and after the show.
He expressed confidence that towards the end of 2009, the property market would recover from the crisis and new regulations will help in consolidating the industry even further.
One of the leading freehold property developers in Dubai and Northern Emirates, Chapal, has announced an extension of one year for payment schedules to property buyers in Dubai and Ajman. By extending such an offer, Chapal aims to relieve its clients during tough times of economic crisis.
Chapal mentioned that this payment extension plan would benefit several thousands of investors and property end-users who booked villas and apartments in freehold projects of Chapal in Dubai Sports City, Emirates City Ajman, Emirates Lakes Towers (Ajman), Jumeirah Village Dubai, Chapal Flora Residences (Ajman).
The payment relaxation terms are currently being reviewed to support buyers of plot in master development in Ajman. IPS has been earmarked as the biggest transactional property event in the region.
Labels: Property-show, Real Estate News
UAE likely to bail out real estate firms: EFG-Hermes
Thursday, February 12, 2009
Leading investment bank in the Middle East, EFG-Hermes, yesterday said that UAE plans to bail out real estate companies in the country, and may restrict the flow of new supplies, amidst the slowdown in property sector.
The government is yet to reveal plans for the real estate sector, although it is known that a federal plan is in the agenda, said the Bank.
The real estate index of the Bank, reveal that advertised prices in Dubai have fallen 8percent during the past few months. The transactional prices have fallen by as much as 35 to 50 percent in Downtown Burj Dubai, Dubai Marina and Palm Jumeirah.
The government aims to restrict the number of housing units coming on stream. According to the Bank, the number of housing units to be released this year will be less than half of the original forecast of 70,000 units.
Last week, Morgan Stanley, the global financial services firm, said that property prices have fallen by an average of 25 percent, since its peak in September last year, and that about $263bn worth of projects have been either delayed or cancelled in UAE.
More than 50 percent of construction projects in the UAE, constituting a total of $582bn worth projects, are currently suspended, revealed ProLeads, the Dubai-based research firm, last week.
The once-booming property sector in Dubai, have been hit hard during recent months, by the fall in property prices, job redundancies, or projects being scaled back by the developers.
The government is yet to reveal plans for the real estate sector, although it is known that a federal plan is in the agenda, said the Bank.
The real estate index of the Bank, reveal that advertised prices in Dubai have fallen 8percent during the past few months. The transactional prices have fallen by as much as 35 to 50 percent in Downtown Burj Dubai, Dubai Marina and Palm Jumeirah.
The government aims to restrict the number of housing units coming on stream. According to the Bank, the number of housing units to be released this year will be less than half of the original forecast of 70,000 units.
Last week, Morgan Stanley, the global financial services firm, said that property prices have fallen by an average of 25 percent, since its peak in September last year, and that about $263bn worth of projects have been either delayed or cancelled in UAE.
More than 50 percent of construction projects in the UAE, constituting a total of $582bn worth projects, are currently suspended, revealed ProLeads, the Dubai-based research firm, last week.
The once-booming property sector in Dubai, have been hit hard during recent months, by the fall in property prices, job redundancies, or projects being scaled back by the developers.
Labels: Market Trends, Real Estate News, UAE
Indian nationals top list of villa-owners in Dubai
Monday, February 09, 2009
Majority of the villas in Dubai are occupied by Indian nationals, while Britons form majority of apartment owners in Dubai. This is as per the statistics revealed by the Dubai Land Department (DLD).
Out of the total 13,774 apartments registered with the Land Department between the period 1963 to 2008, Britons own 2755 units, which constitute 20% of the units. This is followed by Indians and Pakistanis sharing the second position with 14% ownership. The third in line are the Iranians with 11% ownership.
Indians are the top-most in the list of villa buyers, with 21% ownership, which constitute 932 villas out of 4436 villas registered by DLD. This is followed by Britons with 17% ownership, and 12% ownership by Pakistanis.
UAE nationals hold ownership of only 4% of apartments and 6% villas in the emirate, reveal statistics.
However, when considering the total number of landowners in Dubai, 73% are UAE nationals, while Indians and Britons own only 3% and 2% of the land in the emirate.
Out of the total 13,774 apartments registered with the Land Department between the period 1963 to 2008, Britons own 2755 units, which constitute 20% of the units. This is followed by Indians and Pakistanis sharing the second position with 14% ownership. The third in line are the Iranians with 11% ownership.
Indians are the top-most in the list of villa buyers, with 21% ownership, which constitute 932 villas out of 4436 villas registered by DLD. This is followed by Britons with 17% ownership, and 12% ownership by Pakistanis.
UAE nationals hold ownership of only 4% of apartments and 6% villas in the emirate, reveal statistics.
However, when considering the total number of landowners in Dubai, 73% are UAE nationals, while Indians and Britons own only 3% and 2% of the land in the emirate.
Labels: Apartments, Dubai Real Estate, Real Estate News
Buyers can approach Property Court for terminated off-plan contracts
Saturday, January 31, 2009
A senior government official has revealed that property buyers can contest their "terminated" off-plan contracts signed after 31st August 2008 in the newly established Property Court, by going through the Dubai Land Department (DLD).
The buyers can also claim compensation from the Property Court, if he establishes a ground for the termination, said Emad Eldin Farouq, Senior Legal Counsel at the DLD. The Land Department, issued a circular, which states that developers, and not buyers, will have to initiate the official procedure to cancel the off-plan transactions.
However, for sales contracts signed prior to 31st August 2008, the terms of the contract would be applicable to both the parties involved, as per the UAE Civil Code. But, these need not go through the DLD.
Detailing the meaning of the Article 11 under Law No.13, the department said that in case of termination of an off-plan contract, the developer will be entitled to 30 percent of purchase value plus 30 percent of any further investment paid over and above the purchase price.
In case of a buyer intending to contest this, the buyer could approach the Property Court, which would apply the civil jurisdiction on this. The Property Court may agree or disagree with this and the court has the right to choose to adopt or cancel these terms or apply any other rules to this. The Property Court will abide by the regulations under the Civil Code Law, clarified Farouq.
Any agreement can be terminated in a legal manner, either voluntarily, amicably or through a court order depending on the facts.
As per the Civil Coder, the buyer has the right to terminate the contract, in case of a breach by the seller. Farouq also said that investors facing cash-flow constraints can approach the Dubai Land Department for re-scheduling payments for their properties.
The buyers can also claim compensation from the Property Court, if he establishes a ground for the termination, said Emad Eldin Farouq, Senior Legal Counsel at the DLD. The Land Department, issued a circular, which states that developers, and not buyers, will have to initiate the official procedure to cancel the off-plan transactions.
However, for sales contracts signed prior to 31st August 2008, the terms of the contract would be applicable to both the parties involved, as per the UAE Civil Code. But, these need not go through the DLD.
Detailing the meaning of the Article 11 under Law No.13, the department said that in case of termination of an off-plan contract, the developer will be entitled to 30 percent of purchase value plus 30 percent of any further investment paid over and above the purchase price.
In case of a buyer intending to contest this, the buyer could approach the Property Court, which would apply the civil jurisdiction on this. The Property Court may agree or disagree with this and the court has the right to choose to adopt or cancel these terms or apply any other rules to this. The Property Court will abide by the regulations under the Civil Code Law, clarified Farouq.
Any agreement can be terminated in a legal manner, either voluntarily, amicably or through a court order depending on the facts.
As per the Civil Coder, the buyer has the right to terminate the contract, in case of a breach by the seller. Farouq also said that investors facing cash-flow constraints can approach the Dubai Land Department for re-scheduling payments for their properties.
Labels: Off-plan, Real Estate News
Dubai likely to tighten property market regulations
Thursday, January 08, 2009
With several developers withdrawing their projects in wake of global financial meltdown, Dubai is considering tightening rules on property market, say recent reports.
As per a report in The National, the real estate authorities are likely to issue new regulations to help avoid delays and cancellations that have shattered the once-buoyant sector.
Once the new regulation is passed, buyers may be required to pay 30 percent of property price to the developer as a deposit, and the rest 70 percent payment could be made in installments, based on the stages of development.
Developers too, will not be permitted to begin selling units in a property, until 20 percent of the planned project has been completed, as this would ensure that only the most feasible projects proceeds further, revealed Lisa Dale, the Head of Property Department, Al Tamimi Law firm.
Being a member of the seven-strong UAE Federation, Dubai welcomed foreign investors into its property sector in 2002, which triggered the real estate boom through windfall revenues generated from oil prices that touched an all-time high in July 2008. The ever-growing population and investor speculation in the emirate further contributed to surge in property prices.
However, the, international financial crisis and resulting credit crunch has cut down the ability of few developers to complete projects, and this coupled with limited access to loans by buyers’, has resulted in property market slowdown.
As per a report in The National, the real estate authorities are likely to issue new regulations to help avoid delays and cancellations that have shattered the once-buoyant sector.
Once the new regulation is passed, buyers may be required to pay 30 percent of property price to the developer as a deposit, and the rest 70 percent payment could be made in installments, based on the stages of development.
Developers too, will not be permitted to begin selling units in a property, until 20 percent of the planned project has been completed, as this would ensure that only the most feasible projects proceeds further, revealed Lisa Dale, the Head of Property Department, Al Tamimi Law firm.
Being a member of the seven-strong UAE Federation, Dubai welcomed foreign investors into its property sector in 2002, which triggered the real estate boom through windfall revenues generated from oil prices that touched an all-time high in July 2008. The ever-growing population and investor speculation in the emirate further contributed to surge in property prices.
However, the, international financial crisis and resulting credit crunch has cut down the ability of few developers to complete projects, and this coupled with limited access to loans by buyers’, has resulted in property market slowdown.
Labels: Property Law, Real Estate News
RERA introduces new regulations to streamline realty sector
Tuesday, January 06, 2009
Dubai's Real Estate Regulatory Authority (RERA) has introduced a new regulation, wherein the property developers in Dubai would be ranked on the basis of their financial stability and market experience.
Developers registering off-plan projects will henceforth be required to completely own the land first, before registration of the properties, states the new regulation.
The regulation aims to reduce the number of developers and to give RERA a better hand in re-instilling investor confidence amidst falling prices, fraudulent and contractual disputes hitting the sector.
According to another new Regulation passed by RERA last week, aimed in streamlining the property sector, developers in Dubai are not allowed to collect more than 20 percent of the cost of property from the buyer prior to construction.
Head of Trust Accounts, Essa Saeed Ahmed Al Mansoori at RERA's Real Estate Development Trust Account Department said that an 11-member team will monitor the construction process and ensure that the escrow amounts are collected in accordance with the schedule.
RERA continuing to introduce new regulations aiming to streamline the real estate sector of the emirate and protecting all concerned parties involved in property transactions, other emirates where property sector is witnessing considerable growths, too, are following suit.
A Real Estate Regulatory Authority is likely to be established in Abu Dhabi within next couple of months. Ajman Government too, plans to introduce an agency similar to Dubai RERA.
The Federal National Council (FNC) is in the process of preparing draft legislation aiming to regulate the property sector in the country and protect UAE by restricting expatriates from automatically acquiring residency visas through freehold property ownership, so as to reduce dependency on foreign labour.
Developers registering off-plan projects will henceforth be required to completely own the land first, before registration of the properties, states the new regulation.
The regulation aims to reduce the number of developers and to give RERA a better hand in re-instilling investor confidence amidst falling prices, fraudulent and contractual disputes hitting the sector.
According to another new Regulation passed by RERA last week, aimed in streamlining the property sector, developers in Dubai are not allowed to collect more than 20 percent of the cost of property from the buyer prior to construction.
Head of Trust Accounts, Essa Saeed Ahmed Al Mansoori at RERA's Real Estate Development Trust Account Department said that an 11-member team will monitor the construction process and ensure that the escrow amounts are collected in accordance with the schedule.
RERA continuing to introduce new regulations aiming to streamline the real estate sector of the emirate and protecting all concerned parties involved in property transactions, other emirates where property sector is witnessing considerable growths, too, are following suit.
A Real Estate Regulatory Authority is likely to be established in Abu Dhabi within next couple of months. Ajman Government too, plans to introduce an agency similar to Dubai RERA.
The Federal National Council (FNC) is in the process of preparing draft legislation aiming to regulate the property sector in the country and protect UAE by restricting expatriates from automatically acquiring residency visas through freehold property ownership, so as to reduce dependency on foreign labour.
Labels: Property Law, Real Estate News
UAE investors seek "affordable exit route" to prevent distress sale
Tuesday, December 23, 2008
Buyers and property analysts in the UAE are of the opinion that UAE property developers should offer investors with an "affordable exit route" in order to keep away from distress sales.
According to the analysts, given the current situation of global financial crisis and thereby the sudden slump in property sector, it is imperative for developers and authorities in-charge to arrive upon a series of measures to restore investor confidence.
A leading banker in the UAE has suggested that probably an initiative from the government's end, such as reconsidering provision of residence visa facility for buyers of free-hold residential units, would help restore the confidence and boost the property sector.
He pointed out that when the property boom in Dubai began, several developers had given an impression that buying a free-hold property would entitle buyers with residential visa status. This resulted in a major boom in the sector and brought about considerable growth. But, just a couple of months ago, when the authorities clarified that buying a free-hold property does not grant a residential visa status, several international investors backed out of the market.
Despite several legislations such as the Escrow Account, interim real estate register rule by RERA, all helped in building investor trust, the sector needs more proactive measures for revitalization, he added.
The Founder-Chairman of Overseas Indians Economic Forum, Dr. Ram Buxani, said that those who bought several units to take advantage of lucrative earning opportunities, should be granted with an affordable exit route, so that they do not end up with distress sales, which would further delay recovery of property market. Also, the projects that are yet to tak-off or get started should be put on hold and incapable investors should be allowed a convenient exit.
Dr. Buxani explained that about 30 percent of property buyers in the market are individual investors, who play a major role in boosting property sector. Another area that needs to be considered is the penalty clause, which should be maintained at a reasonable level of below 5 percent for those intending to exit. In cases where cash refunds are impossible, even issuing bonds which could be redeemed in 3-4 years are a better option.
According to the analysts, given the current situation of global financial crisis and thereby the sudden slump in property sector, it is imperative for developers and authorities in-charge to arrive upon a series of measures to restore investor confidence.
A leading banker in the UAE has suggested that probably an initiative from the government's end, such as reconsidering provision of residence visa facility for buyers of free-hold residential units, would help restore the confidence and boost the property sector.
He pointed out that when the property boom in Dubai began, several developers had given an impression that buying a free-hold property would entitle buyers with residential visa status. This resulted in a major boom in the sector and brought about considerable growth. But, just a couple of months ago, when the authorities clarified that buying a free-hold property does not grant a residential visa status, several international investors backed out of the market.
Despite several legislations such as the Escrow Account, interim real estate register rule by RERA, all helped in building investor trust, the sector needs more proactive measures for revitalization, he added.
The Founder-Chairman of Overseas Indians Economic Forum, Dr. Ram Buxani, said that those who bought several units to take advantage of lucrative earning opportunities, should be granted with an affordable exit route, so that they do not end up with distress sales, which would further delay recovery of property market. Also, the projects that are yet to tak-off or get started should be put on hold and incapable investors should be allowed a convenient exit.
Dr. Buxani explained that about 30 percent of property buyers in the market are individual investors, who play a major role in boosting property sector. Another area that needs to be considered is the penalty clause, which should be maintained at a reasonable level of below 5 percent for those intending to exit. In cases where cash refunds are impossible, even issuing bonds which could be redeemed in 3-4 years are a better option.
Labels: Dubai Real Estate, Market Trends, Real Estate News
No project scale-backs or staff cuts: Aldar Properties
Tuesday, December 16, 2008
Despite the current global financial meltdown, Aldar Properties, the leading realty developer of Abu Dhabi, revealed that it has no plans of holding back any of its projects, or laying off any of its staff to cut costs.
A senior official of the company, who spoke to Gulf News, said that although nobody is immune to the financial turmoil, but all projects planned by the company will continue as planned, and there will be no staff cuts.
The ongoing projects by Aldar in Abu Dhabi, including the Central Market project, Formula 1 track, Al Raha Beach residences, and hotel projects will be completed as scheduled, he added.
The Formula 1 track would be ready by next year to host the Formula 1 race of 2009 on November 1st in Abu Dhabi as planned, he confirmed.
The real estate projects across the company's portfolio are estimated to have exceeded $72bn in value.
A senior official of the company, who spoke to Gulf News, said that although nobody is immune to the financial turmoil, but all projects planned by the company will continue as planned, and there will be no staff cuts.
The ongoing projects by Aldar in Abu Dhabi, including the Central Market project, Formula 1 track, Al Raha Beach residences, and hotel projects will be completed as scheduled, he added.
The Formula 1 track would be ready by next year to host the Formula 1 race of 2009 on November 1st in Abu Dhabi as planned, he confirmed.
The real estate projects across the company's portfolio are estimated to have exceeded $72bn in value.
Labels: Aldar, Real Estate News
Developers waive-off 30 percent payment before re-sale of units
Thursday, November 27, 2008
Emaar Properties has waived off the clause of paying 30 percent of the total property value before sale of their units in the markets.
According to the Chief Executive of Blu Realty International, Amr Soliman, the restriction of 30 percent payment of total property value before sale of units, no longer exists. Yet, another realty agent is also said to have waived off the clause.
The transfer and sale of off-plan properties was so far permitted only after the 30 percent of total property value had been paid, and no transfer was permitted until the payment was done. According to Emaar, this move was adopted to ensure that the investors and end-users purchasing their properties are genuine.
Early this month, Emaar launched two more payment schemes. One of the schemes permitted property payments for more than five years after handover. Another allowed potential investors to rent a property before they take a decision on whether to purchase it or not. This was done to offer investors with more options and revive property sales.
Property developer, Union Properties, however, has not announced any change, but, has stated that the company will not permit buyers to re-sell their units until they have paid atleast 20 percent of their property value.
On the other hand, Deyaar Development Company, revealed that the company has never insisted on any percentage payment before permitting resale, rather, it emphasizes on certain amount of down payment only.
According to the Chief Executive of Blu Realty International, Amr Soliman, the restriction of 30 percent payment of total property value before sale of units, no longer exists. Yet, another realty agent is also said to have waived off the clause.
The transfer and sale of off-plan properties was so far permitted only after the 30 percent of total property value had been paid, and no transfer was permitted until the payment was done. According to Emaar, this move was adopted to ensure that the investors and end-users purchasing their properties are genuine.
Early this month, Emaar launched two more payment schemes. One of the schemes permitted property payments for more than five years after handover. Another allowed potential investors to rent a property before they take a decision on whether to purchase it or not. This was done to offer investors with more options and revive property sales.
Property developer, Union Properties, however, has not announced any change, but, has stated that the company will not permit buyers to re-sell their units until they have paid atleast 20 percent of their property value.
On the other hand, Deyaar Development Company, revealed that the company has never insisted on any percentage payment before permitting resale, rather, it emphasizes on certain amount of down payment only.
Labels: Off-plan, Real Estate News
Amlak, Tamweel merge to form new entity
Tuesday, November 25, 2008
Two leading real estate finance providers of UAE, Tamweel and Amlak Finance PJSC, would merge into a new entity under the umbrella of Real Estate Bank, the Ministry of Finance announced. The merger is hoped to create a strong unit likely to be a major boos to Dubai property finance market.
The merger would match international standards, following involvement of all financial and legal formalities, separate assessment and approval for integration between the companies.
The Chairman of Tamweel, Shaikh Khalid Bin Zayed Bin Saqr Al Nahyan, said that the merged unit would boost the confidence of investors in both financial and property sectors in the UAE.
Mohammed Alabbar, a member of ruling council of the Gulf emirate and Chairman of Emaar Properties, speaking about a four way tie-up between the two Dubai-based Islamic lenders, the Real Estate Bank and the Emirates Industrial Bank, said that the new entity would be called 'Emirates Development Bank'.
The new entity would be supported by capital and funding, Alabbar assured. According to the Finance Ministry, the merger is a major landmark development for the UAE financial market. It will form a new entity that serves as cornerstone of the real estate finance market, which has great fundamentals.
The merger would match international standards, following involvement of all financial and legal formalities, separate assessment and approval for integration between the companies.
The Chairman of Tamweel, Shaikh Khalid Bin Zayed Bin Saqr Al Nahyan, said that the merged unit would boost the confidence of investors in both financial and property sectors in the UAE.
Mohammed Alabbar, a member of ruling council of the Gulf emirate and Chairman of Emaar Properties, speaking about a four way tie-up between the two Dubai-based Islamic lenders, the Real Estate Bank and the Emirates Industrial Bank, said that the new entity would be called 'Emirates Development Bank'.
The new entity would be supported by capital and funding, Alabbar assured. According to the Finance Ministry, the merger is a major landmark development for the UAE financial market. It will form a new entity that serves as cornerstone of the real estate finance market, which has great fundamentals.
Labels: Mortgages, Real Estate News
Awali Real Estate signs deal to offer funding solutions to Awali City investors
Sunday, November 09, 2008
Awali Real Estate Investments, the renowned real estate investment company, revealed that it has been holding discussions with the American Trust about offering funding solutions to buyers and investors for Awali City plots and buyers of residential units.
The initial agreement has been signed to fund investors in Awali City, but the details of the agreement are yet to be revealed.
The Board Member and Chief Marketing Officer of Awali Real Estate Investment Company, Mohammed Hussein, said "when the global markets are struggling to find suitable funding solutions for real estate investment projects at all levels, and are having serious trust issued, we continue to seek partnerships that offer best funding solutions for investor sin Awali City, and we are taking the final steps towards offering the best possible funding solutions."
The Managing Director of American Trust in Dubai, Alex Mond, said that the strong financial situation of Awali has helped the Trust in taking this step confidently, and that the Trust would offer best funding solutions for investors in the City in accordance with the nature and investment of the project.
The Awali City is a complete residential city project, with 136 plots for residential and commercial purposes. Towers of 17 to 50 storeys are likely to come up in the locality, housing more than 120,000 people.
The plot dividing process and the road works are complete, and the Awali City investors can begin building their developments directly.
Established by the Awali Group, the Awali Real Estate Investment Company is a Dubai-based firm, founded by the Al Nemer Group, as a part of the companies plans to expand across the region, tapping the real estate sector in GCC.
The initial agreement has been signed to fund investors in Awali City, but the details of the agreement are yet to be revealed.
The Board Member and Chief Marketing Officer of Awali Real Estate Investment Company, Mohammed Hussein, said "when the global markets are struggling to find suitable funding solutions for real estate investment projects at all levels, and are having serious trust issued, we continue to seek partnerships that offer best funding solutions for investor sin Awali City, and we are taking the final steps towards offering the best possible funding solutions."
The Managing Director of American Trust in Dubai, Alex Mond, said that the strong financial situation of Awali has helped the Trust in taking this step confidently, and that the Trust would offer best funding solutions for investors in the City in accordance with the nature and investment of the project.
The Awali City is a complete residential city project, with 136 plots for residential and commercial purposes. Towers of 17 to 50 storeys are likely to come up in the locality, housing more than 120,000 people.
The plot dividing process and the road works are complete, and the Awali City investors can begin building their developments directly.
Established by the Awali Group, the Awali Real Estate Investment Company is a Dubai-based firm, founded by the Al Nemer Group, as a part of the companies plans to expand across the region, tapping the real estate sector in GCC.
Labels: Ajman, Real Estate News
Global credit crunch prompts property developers to consider Islamic financial instruments
Thursday, September 18, 2008
With global credit crisis being noticed everywhere in the tough financial world, several property developers in the GCC are turning to Islamic financial instruments for getting a good start for their projects.
According to Swati Taneja, Conference Director of International Islamic Finance Forum, financing carried out as per Islamic rules emphasizes that gains should be derived from ethical, shared investment, rather being interest-based, and hence, this has sidestepped the credit crunch.
The International Islamic Forum, usually held twice a year, will be conducted in Istanbul from 13th to 17th October this year.
The slowdown in the international property market has hit conventional property firms, as investors have begun to scale back their exposure, particularly in highly leveraged markets,Swati said.
There are several instances of emerging developers worldwide adopting the Islamic model to finance their projects. The most recent among these is the biggest property developer of South East Asia, based in Singapore, which is expected to issue $700mn Islamic bond towards end of this year, as the first portion of investment, targeting the Middle East investors.
Taneja pointed out that there are only few competitive sources of finance available in the conventional financial world right now, but, there are several billions of dollars in the Islamic financial sector of the Middle East, seeking investments. However, unless developers plan their projects to be Shariah compliant, they will remain unnoticed.
In recognition of the high competitive alternative offered currently by Islamic finance to the conventional interest-based structures, the forum this year focuses on a special workshop about Islamic real estate deals.
The workshop will offer better understanding of Islamic finance and structures required for real estate development, and will examine the foundation of Islamic finance, and its applicability for real estate transactions.
The forum will identify new markets for Islamic finance and examine Sukuk structures and capital markets, Islamic jurisprudence, emerging Takaful development, alternative asset classes including private equity and real estate, and sustainability with greening of Islamic finance.
According to Swati Taneja, Conference Director of International Islamic Finance Forum, financing carried out as per Islamic rules emphasizes that gains should be derived from ethical, shared investment, rather being interest-based, and hence, this has sidestepped the credit crunch.
The International Islamic Forum, usually held twice a year, will be conducted in Istanbul from 13th to 17th October this year.
The slowdown in the international property market has hit conventional property firms, as investors have begun to scale back their exposure, particularly in highly leveraged markets,Swati said.
There are several instances of emerging developers worldwide adopting the Islamic model to finance their projects. The most recent among these is the biggest property developer of South East Asia, based in Singapore, which is expected to issue $700mn Islamic bond towards end of this year, as the first portion of investment, targeting the Middle East investors.
Taneja pointed out that there are only few competitive sources of finance available in the conventional financial world right now, but, there are several billions of dollars in the Islamic financial sector of the Middle East, seeking investments. However, unless developers plan their projects to be Shariah compliant, they will remain unnoticed.
In recognition of the high competitive alternative offered currently by Islamic finance to the conventional interest-based structures, the forum this year focuses on a special workshop about Islamic real estate deals.
The workshop will offer better understanding of Islamic finance and structures required for real estate development, and will examine the foundation of Islamic finance, and its applicability for real estate transactions.
The forum will identify new markets for Islamic finance and examine Sukuk structures and capital markets, Islamic jurisprudence, emerging Takaful development, alternative asset classes including private equity and real estate, and sustainability with greening of Islamic finance.
Labels: Dubai Real Estate, Mortgages, Real Estate News
UAE realty sector hoped to cool down and witness corrections
Thursday, September 04, 2008
The prevailing high prices in Dubai realty sector are likely to be short-lived, and a slowdown is expected, announced the Chief Executive of Daman Investments, a top asset management company.
"Prices are sure to stop growing at this maddening pace. I doubt we will see a significant long term bust. But we will see corrections" said Shehab Gargash, CEO, Daman Investments.
According to Shehab, with the demand continuing to grow, the realty sector will witness growth and prices will continue to increase. But Dubai is no longer a direct build-and-sell proposition. During the past weeks, the UAE realty sector was in the limelight for several reasons, such as the much talked about Morgan Stanley report, which indicated a 10 percent drop in prices by the next two years, when the supply comes into stream.
The market is in a consolidation phase, and will see a differentiation among good and bad quality developers, Shehab added.
Mohammad Nimer, CEO of MAG Group Property Development, agreed that the prices are no-doubt sky-high, and is getting less attractive for investors and end-users, and hence, a correction is bound to take place. The people who already purchased property will realize that the price paid was 'inflated', and secondary market buyers and investors will think twice before investing.
The Government of Dubai has now passed a mortgage regulation, making registration mandatory, which cracks down off-plan sales, and reduces fears of speculation in the market. This will surely have a positive impact on the market, although the market will face a slow down. But, it will sure make the market stronger, he added.
Sudhir Kumar, the Managing Director, Realtors International, pointed out that premiums in witnessed in the market, during the recent years, have now become a past. He, however, said that he does not expect a slowdown in the market within next two years.
Temporary shake ups may happen, but, considering the corrective measures being taken, when all the regulations are passed, abnormal premiums are unlikely to happen, he added.
"Prices are sure to stop growing at this maddening pace. I doubt we will see a significant long term bust. But we will see corrections" said Shehab Gargash, CEO, Daman Investments.
According to Shehab, with the demand continuing to grow, the realty sector will witness growth and prices will continue to increase. But Dubai is no longer a direct build-and-sell proposition. During the past weeks, the UAE realty sector was in the limelight for several reasons, such as the much talked about Morgan Stanley report, which indicated a 10 percent drop in prices by the next two years, when the supply comes into stream.
The market is in a consolidation phase, and will see a differentiation among good and bad quality developers, Shehab added.
Mohammad Nimer, CEO of MAG Group Property Development, agreed that the prices are no-doubt sky-high, and is getting less attractive for investors and end-users, and hence, a correction is bound to take place. The people who already purchased property will realize that the price paid was 'inflated', and secondary market buyers and investors will think twice before investing.
The Government of Dubai has now passed a mortgage regulation, making registration mandatory, which cracks down off-plan sales, and reduces fears of speculation in the market. This will surely have a positive impact on the market, although the market will face a slow down. But, it will sure make the market stronger, he added.
Sudhir Kumar, the Managing Director, Realtors International, pointed out that premiums in witnessed in the market, during the recent years, have now become a past. He, however, said that he does not expect a slowdown in the market within next two years.
Temporary shake ups may happen, but, considering the corrective measures being taken, when all the regulations are passed, abnormal premiums are unlikely to happen, he added.
Labels: Market Trends, Real Estate News, UAE
The trend of mega developments continue to rise in UAE
Mega developments are here to stay, and will be the future standard for real estate development in the region, reports the Gulf News.
Mohammed Hussein Abdullah al Nemer, the Board Member and Chief Marketing Officer of Awali Real Estate Investments, stated that the rise of mega projects in the UAE realty sector, may be due to several factors, which are hoped to bring in demand and form the ideal platform for large-scale community developments, as against the smaller, single-purpose developments during the past.
The growing UAE economy, draws high numbers of new residents each year, and creates a knock-on impact on the property sector. This has led to massive surge in demand for high quality commercial and residential properties.
With the demand, comes the need for luxury, convenience, exclusivity, integrated community services, all of which could be expected from a modern life-style.
Mixed-use developments not only cater to the necessities of modern living, but also play a major role in the sustained development of the economy in the region, as the sheer volume of development is not only indicative of the vastness in the market, but, is also a major contributor to the growth in terms of job opportunity.
Mohammed Hussein Abdullah al Nemer, the Board Member and Chief Marketing Officer of Awali Real Estate Investments, stated that the rise of mega projects in the UAE realty sector, may be due to several factors, which are hoped to bring in demand and form the ideal platform for large-scale community developments, as against the smaller, single-purpose developments during the past.
The growing UAE economy, draws high numbers of new residents each year, and creates a knock-on impact on the property sector. This has led to massive surge in demand for high quality commercial and residential properties.
With the demand, comes the need for luxury, convenience, exclusivity, integrated community services, all of which could be expected from a modern life-style.
Mixed-use developments not only cater to the necessities of modern living, but also play a major role in the sustained development of the economy in the region, as the sheer volume of development is not only indicative of the vastness in the market, but, is also a major contributor to the growth in terms of job opportunity.
Labels: Real Estate News, UAE
UAE house rents surged 17.5 percent in 2007
Monday, August 25, 2008
With inflation at its peak, house rents and associated services in the UAE, has surged by 17.5 percent last year.
The rents increased by 18.8 percent, while other associated services and products, including housemaids and furniture got dearer, except the heavily subsidized power supply and water, which either stabilized or declined.
The figures released by the Ministry of Economy last year, revealed that 2007 was the best year for UAE, in terms of economic growth and revenues. But it was also one of the worst years in terms of inflation, which soared by 11 percent.
The UAE attributes the increase in food prices and rents as the main factors behind inflation, apart from the higher import bills due to decline in the value of US dollar.
Although, the high food prices has been considered mainly due to surge in global farm costs, the strong demand generated by the economic boom, coupled with mounting fuel and construction costs, have pushed costs of rents and other housing services forwards.
The Ministry of Economy reports that house rents and other associated items saw an increase of 17.5 percent in 2007, which is far higher than 12.5 percent growth in 2006. Rents along saw an increase by 18.8 percent, while the prices of furniture and other other services increased by 13 percent in 2007.
Water and electricity prices were the only relief, as water rates continued to remain stable due to heavy government subsidies on water supply for domestic use, while electricity rates declined by 5.5 percent.
The Ministry reports inflation in the UAE at 11.1 percent in 2007, attributing soaring rents and food prices to be the major cause.
The major oil-producing emirate, Abu Dhabi, saw the maximum inflation rate of nearly 11.6 percent, followed by Dubai and Sharjah.
It has been revealed that UAE was the second highest in inflation levels in the GCC, next to Qatar, which had recorded 13 percent. The inflation rate of UAE was thrice that in Saudi Arabia, and four times that in Bahrain.
Economists are expecting inflation to continue to remain high even this year, with the rising rents and food prices. UAE, which is heavily dependent on imports, has increased in value and quantity due to upsurge in regional business, and the peg between the Dollar and UAE Dirham.
The rents increased by 18.8 percent, while other associated services and products, including housemaids and furniture got dearer, except the heavily subsidized power supply and water, which either stabilized or declined.
The figures released by the Ministry of Economy last year, revealed that 2007 was the best year for UAE, in terms of economic growth and revenues. But it was also one of the worst years in terms of inflation, which soared by 11 percent.
The UAE attributes the increase in food prices and rents as the main factors behind inflation, apart from the higher import bills due to decline in the value of US dollar.
Although, the high food prices has been considered mainly due to surge in global farm costs, the strong demand generated by the economic boom, coupled with mounting fuel and construction costs, have pushed costs of rents and other housing services forwards.
The Ministry of Economy reports that house rents and other associated items saw an increase of 17.5 percent in 2007, which is far higher than 12.5 percent growth in 2006. Rents along saw an increase by 18.8 percent, while the prices of furniture and other other services increased by 13 percent in 2007.
Water and electricity prices were the only relief, as water rates continued to remain stable due to heavy government subsidies on water supply for domestic use, while electricity rates declined by 5.5 percent.
The Ministry reports inflation in the UAE at 11.1 percent in 2007, attributing soaring rents and food prices to be the major cause.
The major oil-producing emirate, Abu Dhabi, saw the maximum inflation rate of nearly 11.6 percent, followed by Dubai and Sharjah.
It has been revealed that UAE was the second highest in inflation levels in the GCC, next to Qatar, which had recorded 13 percent. The inflation rate of UAE was thrice that in Saudi Arabia, and four times that in Bahrain.
Economists are expecting inflation to continue to remain high even this year, with the rising rents and food prices. UAE, which is heavily dependent on imports, has increased in value and quantity due to upsurge in regional business, and the peg between the Dollar and UAE Dirham.
Labels: Real Estate News, UAE
Dubai Lagoons project has not been dropped: RERA
Friday, August 22, 2008
The Dubai Lagoons, the project, which had been slowed down during the past year, has not been shelved, as yet, in contrast to speculations, said RERA, the Dubai Real Estate Regulatory Authority.
The project offers a 99-year leasehold to investors, and has been bought by Schon Properties from its previous developers.
The Chief Executive of RERA, Marwan Bin Ghalita, said the project, which began prior to the launch of RERA, had witnessed some delays. RERA had to respond to the complaints by investors, while also safeguarding their interests and rights.
RERA also discussed with about 60 investors who invested on flats in the project. Scores of disputes could be amicably sorted out, while protecting the interests of investors over its year-long launch.
All investors have been urged to report to RERA, all possible violations, particularly, those pertaining to escrow accounts No.9, Bin Ghalita said.
The project offers a 99-year leasehold to investors, and has been bought by Schon Properties from its previous developers.
The Chief Executive of RERA, Marwan Bin Ghalita, said the project, which began prior to the launch of RERA, had witnessed some delays. RERA had to respond to the complaints by investors, while also safeguarding their interests and rights.
RERA also discussed with about 60 investors who invested on flats in the project. Scores of disputes could be amicably sorted out, while protecting the interests of investors over its year-long launch.
All investors have been urged to report to RERA, all possible violations, particularly, those pertaining to escrow accounts No.9, Bin Ghalita said.
Labels: Lagoon, Real Estate News
Abu Dhabi to witness Dh 200bn worth of realty investments
Tuesday, August 12, 2008
With the Abu Dhabi government pitching in to fill up the void in supply of residential units within the Capital, the real estate investments and infrastructure in the UAE Capital, is likely to touch Dh.200bn by 2012, reveal latest studies.
The establishment of Abu Dhabi Commercial Properties, apart from various initiatives taken to fine-tune real estate regulations, is also prompting the growth of the market, which is expected to see about 140,000 housing units by the year 2013.
With the market maintaining a growth which is stronger-than-expected, Bonyan International Investment Group (Holding) L.L.C., has identified a real estate company as one with high-potential investment opportunities within the emirate, inline with its regional expansion plans.
Keeping in mind the current growth in population, which stands at seven percent per annum, the government, has increased its interest in boosting the tourism sector, coupled with continuous development and modernization of infrastructure.
The Abu Dhabi property sector is heading towards an unprecedented boom, and, being in the middle of a major economic development, this is likely to continue for the next fifteen years. The emirate has been identified by Bonyan International, as being a market with high potential to accommodate various large-scale developments with its liberal and modern growth policies.
The establishment of Abu Dhabi Commercial Properties, apart from various initiatives taken to fine-tune real estate regulations, is also prompting the growth of the market, which is expected to see about 140,000 housing units by the year 2013.
With the market maintaining a growth which is stronger-than-expected, Bonyan International Investment Group (Holding) L.L.C., has identified a real estate company as one with high-potential investment opportunities within the emirate, inline with its regional expansion plans.
Keeping in mind the current growth in population, which stands at seven percent per annum, the government, has increased its interest in boosting the tourism sector, coupled with continuous development and modernization of infrastructure.
The Abu Dhabi property sector is heading towards an unprecedented boom, and, being in the middle of a major economic development, this is likely to continue for the next fifteen years. The emirate has been identified by Bonyan International, as being a market with high potential to accommodate various large-scale developments with its liberal and modern growth policies.
Labels: Abu Dhabi, Infrastructure, Real Estate News
DED and RERA sign deal to improve Dubai realty sector
Monday, August 11, 2008
The Dubai Department of Economic Development (DED) and Real Estate Regulatory Authority (RERA) in Dubai has entered into a partnership deal to improve the quality of support services offered to real estate investors and customers.
The Deputy Director General for Planning and Development, Khalid al Kassim, and RERA Chief Executive Officer, Marwan Bin Ghalaita, signed the agreement during a signing ceremony recently heald at DED headquarters in Diera.
According to agreement, RERA will use the license and business registration system applied by DED for issuing licenses pertaining to real estate activities. This is intended to ease licensing procedures pertaining to real estate activities and will enhance the overall performance of Dubai's real estate sector.
The agreement is in accordance with strategic objective by DED to constantly review its existing procedures so as to simplify its rules and regulations. The business registration system at DED has been streamlined and made more user-friendly. Investors can now set up businesses with minimum procedures and paperwork, and DED will assist them by co-ordination with other government authorities and departments.
Al Kassim said that through this agreement with RERA, the company is emphasizing its commitment to work together on initiatives that support the progress of realty sector in Dubai.
According to Marwan Bin Ghalaita, RERA will form the basics of licensing for real estate activities and execute procedures that hasten the issuance of licenses for such activities. Through joint initiative, RERA and DED will explore mutually beneficial opportunities that enhance the quality of support services offered to realty investors and customers.
Business owners holding old licenses can correct their status inline with the new regulations. RERA is looking forward to launch real estate activities that adhere to international criteria for real estate licensing, Ghalita added.
DED was established in March 1991 aiming to organize, regulate, and boost trade and industry in the Emirate of Dubai.
The Deputy Director General for Planning and Development, Khalid al Kassim, and RERA Chief Executive Officer, Marwan Bin Ghalaita, signed the agreement during a signing ceremony recently heald at DED headquarters in Diera.
According to agreement, RERA will use the license and business registration system applied by DED for issuing licenses pertaining to real estate activities. This is intended to ease licensing procedures pertaining to real estate activities and will enhance the overall performance of Dubai's real estate sector.
The agreement is in accordance with strategic objective by DED to constantly review its existing procedures so as to simplify its rules and regulations. The business registration system at DED has been streamlined and made more user-friendly. Investors can now set up businesses with minimum procedures and paperwork, and DED will assist them by co-ordination with other government authorities and departments.
Al Kassim said that through this agreement with RERA, the company is emphasizing its commitment to work together on initiatives that support the progress of realty sector in Dubai.
According to Marwan Bin Ghalaita, RERA will form the basics of licensing for real estate activities and execute procedures that hasten the issuance of licenses for such activities. Through joint initiative, RERA and DED will explore mutually beneficial opportunities that enhance the quality of support services offered to realty investors and customers.
Business owners holding old licenses can correct their status inline with the new regulations. RERA is looking forward to launch real estate activities that adhere to international criteria for real estate licensing, Ghalita added.
The activities included in the list of real estate activities are consultation, realty development, selling and renting, brokerage in buying, buying land and real estate, rental services, organizing public auctions, timeshare residential units, timeshare residential units rental services, real estate pricing services and all real estate future activities.
DED was established in March 1991 aiming to organize, regulate, and boost trade and industry in the Emirate of Dubai.
Labels: Dubai Real Estate, Property Law, Real Estate News
DEC, Robodh Contracting in Dh4.5bn property development joint venture
Sunday, July 20, 2008
Dheeraj East Coast (DEC) and Robodh Contracting have entered into a joint venture for development of a property portfolio worth Dh.4.5bn. This portfolio is likely to grow with new projects arriving at the market.
According to the MoU, Robodh Contracting LLC would remain the main contractors for the existing and future projects of DEC. Robodh would be responsible for construction of all projects in DEC, including co-ordinating with various subcontractors.
The Managing Director of DEC, Dheera Wadhwan, said that finding the appropriate main contractor is a vital decision in real estate development. Their joint venture with Robodh, apart from standardizing, also helps adhere to highest quality benchmarks, also helps in timely delivery of the projects. Also, through a long term relationship, the joint-venture is likely to reduce cost of construction, permitting better control over subcontractors.
The CEO of Robodh Contracting, P.H. Menon, said that the joint venture helps reflect the trust that developers have placed in the company, through its core competence of competitive and timely delivery with highest quality standards.
Deeraj East Coast has a total of 20 upcoming projects in Dubai, with a wide array of developments such as commercial and residential projects featuring global culture, mixed-use lifestyle, and combinations of modern and old world charm and business, projecting various stages of development.
According to the MoU, Robodh Contracting LLC would remain the main contractors for the existing and future projects of DEC. Robodh would be responsible for construction of all projects in DEC, including co-ordinating with various subcontractors.
The Managing Director of DEC, Dheera Wadhwan, said that finding the appropriate main contractor is a vital decision in real estate development. Their joint venture with Robodh, apart from standardizing, also helps adhere to highest quality benchmarks, also helps in timely delivery of the projects. Also, through a long term relationship, the joint-venture is likely to reduce cost of construction, permitting better control over subcontractors.
The CEO of Robodh Contracting, P.H. Menon, said that the joint venture helps reflect the trust that developers have placed in the company, through its core competence of competitive and timely delivery with highest quality standards.
Deeraj East Coast has a total of 20 upcoming projects in Dubai, with a wide array of developments such as commercial and residential projects featuring global culture, mixed-use lifestyle, and combinations of modern and old world charm and business, projecting various stages of development.
Labels: Real Estate Company, Real Estate News
Gulf Property market unlikely to succumb to global property fall trend
Tuesday, July 08, 2008
For those of you, who are on the look out for an investment opportunity that doesn't succumb to the global fall in property investment transactions, the Gulf property market is still a welcoming one.
According to Robin Williamson, the Managing Director-Middle East operations of DTZ, expert real estate firm, although the initial phase of sub-prime crisis seems to have passed, the credit crunch is likely to continue well into 2009, particularly, in the European and US property markets.
However, on the contrary, the Gulf region and few other markets such as the Asia Pacific, will be less affected to a great extent, and will continue to be an attractive one, he added.
This positive stance about the Gulf Market follows the publication of DTZ's annual Money into Property report, which studies the global property trends. The report shows that the value of real estate capital market has touched $12trillion in 2007, an increase of over 18 percent from the previous year.
As against the year 2007, when Global Investment transactions grew to $730bn, DTZ expects a fall of 30 percent this year touching $500bn, due to the global investment environment last year. Even the global direct real estate transactions have fallen by 50 percent during the first quarter of 2008, as against the same period during 2007.
Williamson revealed that only a few regions can escape the effects of the sub-prime fall out. Based on the company's research and on-the-ground experience in dealing with Gulf markets, there are strong indications that the global property markets are less likely to surrender to these global trends.
DTZ, which began its operations in 1975, is one of the most established realty firms in the region, with a strong presence in six GCC locations, including Dubai, Abu Dhabi, Bahrain, Qatar, Kuwait and Saudi Arabia.
According to Robin Williamson, the Managing Director-Middle East operations of DTZ, expert real estate firm, although the initial phase of sub-prime crisis seems to have passed, the credit crunch is likely to continue well into 2009, particularly, in the European and US property markets.
However, on the contrary, the Gulf region and few other markets such as the Asia Pacific, will be less affected to a great extent, and will continue to be an attractive one, he added.
This positive stance about the Gulf Market follows the publication of DTZ's annual Money into Property report, which studies the global property trends. The report shows that the value of real estate capital market has touched $12trillion in 2007, an increase of over 18 percent from the previous year.
As against the year 2007, when Global Investment transactions grew to $730bn, DTZ expects a fall of 30 percent this year touching $500bn, due to the global investment environment last year. Even the global direct real estate transactions have fallen by 50 percent during the first quarter of 2008, as against the same period during 2007.
Williamson revealed that only a few regions can escape the effects of the sub-prime fall out. Based on the company's research and on-the-ground experience in dealing with Gulf markets, there are strong indications that the global property markets are less likely to surrender to these global trends.
DTZ, which began its operations in 1975, is one of the most established realty firms in the region, with a strong presence in six GCC locations, including Dubai, Abu Dhabi, Bahrain, Qatar, Kuwait and Saudi Arabia.
Labels: Market Trends, Middle-East, Real Estate News
Rents in Abu Dhabi to continue to soar
Thursday, June 05, 2008
Rents in Abu Dhabi, although have reached their maximum best, are likely to increase further, during the next few years, in view of the worsening shortage in supply, reveal recent reports.
According to the Abu Dhabi Chamber of Commerce and Industry The low and middle income expatriates will be the worst affected with the increase in rents, which have more than doubled during the past three years, while the salaries have remained the same.
After years of stability during 1990s and 2000, the property market in Abu Dhabi witnessed a jerk in 2006, due to the strong domestic demand, caused by an economic upsurge that shot up rents to sky-high levels, despite the introduction of rent caps by the government.
The Chamber reports that although the real estate market in the capital was more or less stabilized in 2005, with the 287,000 housing units being able to cover the domestic demand, a surge in demand during 2006, did not meet a similar supply growth. This resulted in a shortage of 3000 units. During the year 2007, the demand-supply gap was more than doubled and touched nearly 8000 and is further expected to touch 20,000 by this year.
The Chamber, in its report, states "Most housing units which will enter the market this year will cater to the hig-income sector, while the low and middle-income category will be the victims of shortage and rent increases."
"We expect a record supply shortage in housing units, which exceeds 20,000. This will aggravate the property situation in the emirate, pushing it from bad to worse, which in turn will affect the economic activities in the emirate and push inflation to new record levels," the report said.
According to property dealers, rents in the capital have increased by more than 25 percent in 2007, and by 15 percent during first quarter of this year. The increase has been attributed to the huge increase in demand and rapid growth in population, an intensifying influx of expatriate workers due to surge in projects in the Capital, failure by landlords to abide by the rent caps, and the concentration of property developers on costlier properties that caters to high-income sector.
"Buildings that are under construction in Abu Dhabi will cater to only 20 percent of the demand. This will only widen the supply shortage, and when coupled with the population growth, it will push rents to record high levels. As rents account for more than 40 percent of consumer spending, this increase will further aggravate inflation in the emirate," states the Chamber report.
Abu Dhabi has one of the highest per-capita incomes in the world, projected to touch Dh.225,000 in 2008. As per figures by the Abu Dhabi Department of Planning and Economy, population in Abu Dhabi has grown by 12.6 percent, and is likely to grow by 7.5 percent his year, which is one of the highest in the world.
According to the Abu Dhabi Chamber of Commerce and Industry The low and middle income expatriates will be the worst affected with the increase in rents, which have more than doubled during the past three years, while the salaries have remained the same.
After years of stability during 1990s and 2000, the property market in Abu Dhabi witnessed a jerk in 2006, due to the strong domestic demand, caused by an economic upsurge that shot up rents to sky-high levels, despite the introduction of rent caps by the government.
The Chamber reports that although the real estate market in the capital was more or less stabilized in 2005, with the 287,000 housing units being able to cover the domestic demand, a surge in demand during 2006, did not meet a similar supply growth. This resulted in a shortage of 3000 units. During the year 2007, the demand-supply gap was more than doubled and touched nearly 8000 and is further expected to touch 20,000 by this year.
The Chamber, in its report, states "Most housing units which will enter the market this year will cater to the hig-income sector, while the low and middle-income category will be the victims of shortage and rent increases."
"We expect a record supply shortage in housing units, which exceeds 20,000. This will aggravate the property situation in the emirate, pushing it from bad to worse, which in turn will affect the economic activities in the emirate and push inflation to new record levels," the report said.
According to property dealers, rents in the capital have increased by more than 25 percent in 2007, and by 15 percent during first quarter of this year. The increase has been attributed to the huge increase in demand and rapid growth in population, an intensifying influx of expatriate workers due to surge in projects in the Capital, failure by landlords to abide by the rent caps, and the concentration of property developers on costlier properties that caters to high-income sector.
"Buildings that are under construction in Abu Dhabi will cater to only 20 percent of the demand. This will only widen the supply shortage, and when coupled with the population growth, it will push rents to record high levels. As rents account for more than 40 percent of consumer spending, this increase will further aggravate inflation in the emirate," states the Chamber report.
Abu Dhabi has one of the highest per-capita incomes in the world, projected to touch Dh.225,000 in 2008. As per figures by the Abu Dhabi Department of Planning and Economy, population in Abu Dhabi has grown by 12.6 percent, and is likely to grow by 7.5 percent his year, which is one of the highest in the world.
Labels: Abu Dhabi, Real Estate News, Rentals
Abyaar, Mada'in join hands to launch $817m worth projects
Saturday, May 31, 2008
The Dubai-based Mada'in Properties, together with Kuwait-based Abyaar, have together ventured into launch of new development projects in Dubai. To begin with, two projects worth Dh.3 billion will be launched.
According to the Abyaar Vice-Chairman and Managing Director, Al-Rashdan, the projects mark the beginning of a long-term partnership between the two companies, specializing in state-of-the-art high-end development.
The first project will be located at the prestigious Dubai Marina, and comprises 107 exclusive units, along with townhouses. The construction of the tower is due to begin by second half of this year.
The next project would be the Meydan master development, which has been long-awaited. Meydan, located near Nad Al Sheba in Dubai, is an area renowned for hosting of Dubai World Cup.
Combined plots with total built-up area of 884,815 square feet, will be developed as mixed-use development and will comprise residential, commercial and retail segments. The design and conceptualization work has already commenced.
Al-Rashdan has confirmed that the high-end quality will be maintained throughout their project, which targets the discerning, niche investor.
The CEO of Mada'in properties Abdulaziz Al Alwar said that the company has already made its presence felt with their first launch Marina Arcade at Dubai Marina. The 64 storey development was one-of-its-kind offering smart home technology, landscaped roof top gardens, largest health and fitness centers, full scale jogging track, rooftop townhouses with Jacuzzis, penthouses, duplexes and Sky Palace.
According to the Abyaar Vice-Chairman and Managing Director, Al-Rashdan, the projects mark the beginning of a long-term partnership between the two companies, specializing in state-of-the-art high-end development.
The first project will be located at the prestigious Dubai Marina, and comprises 107 exclusive units, along with townhouses. The construction of the tower is due to begin by second half of this year.
The next project would be the Meydan master development, which has been long-awaited. Meydan, located near Nad Al Sheba in Dubai, is an area renowned for hosting of Dubai World Cup.
Combined plots with total built-up area of 884,815 square feet, will be developed as mixed-use development and will comprise residential, commercial and retail segments. The design and conceptualization work has already commenced.
Al-Rashdan has confirmed that the high-end quality will be maintained throughout their project, which targets the discerning, niche investor.
The CEO of Mada'in properties Abdulaziz Al Alwar said that the company has already made its presence felt with their first launch Marina Arcade at Dubai Marina. The 64 storey development was one-of-its-kind offering smart home technology, landscaped roof top gardens, largest health and fitness centers, full scale jogging track, rooftop townhouses with Jacuzzis, penthouses, duplexes and Sky Palace.
Labels: Real Estate News
Dubai realty remains unabated despite fluctuations in other sectors
Thursday, April 10, 2008
The growth of real estate sector in Dubai remains protected from all other fluctuations currently happening in oil prices, whether short or medium term, and in fact, the higher oil prices will only stimulate the fast-paced growth.
The value of few of the realty projects in GCC, Iraq and Iran have crossed $750bn, and about 33% of this belongs to the UAE, particularly, Dubai. The figure is higher than the combined GDP (Gross Domestic Product) in the same region, which totals to less than $700bn.
Experts predict that this trend will continue, despite the fact that oil prices are likely to drop during the short and medium terms.
A strong point to be noted in the growth of Dubai is that it has been consistently defying all predictions by Analysts. Over the past five years, most experts predicted that the realty market in Dubai will begin to show a downward trend, and that it is a "bubble waiting to be burst".
Although it is agreed that such growth has never been sustainable for long, none is able to explain why the market continues to thrive in Dubai.
GCC has the 17th largest economy in the world, with 500,000 high-income earners and a GDP of $525 billion. The total half trillion dollar economy creates more than $500 billion in revenue, which is being used for investment. The volume is believed to boost the real estate and construction sector in Dubai.
The value of few of the realty projects in GCC, Iraq and Iran have crossed $750bn, and about 33% of this belongs to the UAE, particularly, Dubai. The figure is higher than the combined GDP (Gross Domestic Product) in the same region, which totals to less than $700bn.
Experts predict that this trend will continue, despite the fact that oil prices are likely to drop during the short and medium terms.
A strong point to be noted in the growth of Dubai is that it has been consistently defying all predictions by Analysts. Over the past five years, most experts predicted that the realty market in Dubai will begin to show a downward trend, and that it is a "bubble waiting to be burst".
Although it is agreed that such growth has never been sustainable for long, none is able to explain why the market continues to thrive in Dubai.
GCC has the 17th largest economy in the world, with 500,000 high-income earners and a GDP of $525 billion. The total half trillion dollar economy creates more than $500 billion in revenue, which is being used for investment. The volume is believed to boost the real estate and construction sector in Dubai.
Labels: Dubai Real Estate, Market Trends, Real Estate News
Dubai Properties to launch 50,000 low-budget homes
Saturday, March 29, 2008
A top official of Dubai Properties yesterday revealed the launch of 50,000 low-budget homes during the coming years, to meet the growing housing problem among the emirate's middle-income groups.
These affordable housing units will be a true mix of freehold and rental units, announced Mohammad Bin Braik, Chief Executive, Dubai Property Group.
"Although we are involved mainly in built-to-sell business, rental units give a continuous flow of guaranteed returns and provide necessary stability. We are not only building assets, but also building values for Dubai," said Bin Braik.
Dubai Properties has already built a sizeable housing project in Al Quoz area, which will soon be open for rent, he said, but is yet to elaborate on his plans for various housing schemes.
This seems to be good news for the 1.44 million population of the emirate, large numbers of who, stay in Ajman and Sharjah seeking cheaper alternatives, as most of the current projects cater only to high-income groups, leading to imbalance in the emirate's housing market.
House rent and increasing population continues to dominate the list of worries in Dubai, which has prompted the government to cap rents during recent years. A sudden growth in freehold market since 2002, led major developers to shift their focus from rental market to freehold sector. On the other hand demand continued to soar, pushing rents sky-high.
In the meanwhile, large numbers of government-built colonies and low-cost housings were demolished, reducing housing options for the middle-income and low-income groups.
Nakheel, a government-owned developer, has set up 'International City', considered as affordable housing.
According to a top property broker, the high rents at prevailing currently, are good enough to prompt developers to return to rental market, once the income rises up to the same level as that of freehold market.
These affordable housing units will be a true mix of freehold and rental units, announced Mohammad Bin Braik, Chief Executive, Dubai Property Group.
"Although we are involved mainly in built-to-sell business, rental units give a continuous flow of guaranteed returns and provide necessary stability. We are not only building assets, but also building values for Dubai," said Bin Braik.
Dubai Properties has already built a sizeable housing project in Al Quoz area, which will soon be open for rent, he said, but is yet to elaborate on his plans for various housing schemes.
This seems to be good news for the 1.44 million population of the emirate, large numbers of who, stay in Ajman and Sharjah seeking cheaper alternatives, as most of the current projects cater only to high-income groups, leading to imbalance in the emirate's housing market.
House rent and increasing population continues to dominate the list of worries in Dubai, which has prompted the government to cap rents during recent years. A sudden growth in freehold market since 2002, led major developers to shift their focus from rental market to freehold sector. On the other hand demand continued to soar, pushing rents sky-high.
In the meanwhile, large numbers of government-built colonies and low-cost housings were demolished, reducing housing options for the middle-income and low-income groups.
Nakheel, a government-owned developer, has set up 'International City', considered as affordable housing.
According to a top property broker, the high rents at prevailing currently, are good enough to prompt developers to return to rental market, once the income rises up to the same level as that of freehold market.
Labels: Dubai Real Estate, Real Estate News
UAE Realty market still high in demand
Monday, March 24, 2008
The huge numbers of participators, investors and buyers who thronged the R&R Local Property Show held in Dubai recently, indicates the strong demand for real estate in the UAE.
The Marketing Director of DSL Exhibitions, Tessa Morris says "The R&R Local Property Show is a true reflection and display of UAE properties. Being one of the oldest exhibitions in the UAE, it is also a fair gauge of market sentiment."
"The show witnessed large numbers of visitors than previous shows, and brisk businesses were being conducted, which is a clear indication that suggests that we are nowhere near the peak of the market. Investor interest is a major factor and both institutional as well as individual investors still foresee an opportunity for gains. However, the end-user confidence contributes considerably to the demand," Tessa said.
The focus was not centered on Dubai property market alone, but also in the market of Ajman, where there is much demand for affordable properties, at present. To add to this, the excellent payment plans direct from developers makes Northern Emirates a more viable opportunity.
The Marketing Director of DSL Exhibitions, Tessa Morris says "The R&R Local Property Show is a true reflection and display of UAE properties. Being one of the oldest exhibitions in the UAE, it is also a fair gauge of market sentiment."
"The show witnessed large numbers of visitors than previous shows, and brisk businesses were being conducted, which is a clear indication that suggests that we are nowhere near the peak of the market. Investor interest is a major factor and both institutional as well as individual investors still foresee an opportunity for gains. However, the end-user confidence contributes considerably to the demand," Tessa said.
The focus was not centered on Dubai property market alone, but also in the market of Ajman, where there is much demand for affordable properties, at present. To add to this, the excellent payment plans direct from developers makes Northern Emirates a more viable opportunity.
Labels: Real Estate News, UAE
Real estate sales peaked to Dh 1.16bn last week
Saturday, March 01, 2008
Real Estate Sales in Dubai last weeks peaked to Dh.1.16bn, reveals Dubai Land Department.
Al Warsan First recorded the highest sale for a plot with Dh.39,500,500 followed by Al Farsan First at Dh.35,000,000 for the sale of a building.
The villa sales for the week were done at Emirates Hills Third. The total value of land sales recorded, was the highest on 27th February 2008, Wednesday, at Dh.279,475,904.
The combined value of plot sales, flat-sales and villa-sale for the period was Dh.715.9mn, Dh.114.8mn and Dh.18.36mn respectively.
The Construction sector in Dubai, in the meanwhile, is well up-to-the mark, and is on par with the surging demand for space in the emirate.
Trakhees, the Civil Engineering Department of Ports, Customs and Free Zone Corporation has issued an average of 250 permits per day for construction of buildings in Dubai last year.
The Managing Director of Trakhees, Nazek Al Sabbagh, said "The growth in construction sector of Dubai, is ahead of demand, and recorded significant growth last year. Dubai is a world-class city which will see numerous state-of-the-art buildings in days to come."
Also, with the maturing markets of Dubai real estate and construction sectors, the emirate witnessed a considerable drop (from 30% in 2006 to 10% in 2007) in number of construction violations during the past year.
Al Warsan First recorded the highest sale for a plot with Dh.39,500,500 followed by Al Farsan First at Dh.35,000,000 for the sale of a building.
The villa sales for the week were done at Emirates Hills Third. The total value of land sales recorded, was the highest on 27th February 2008, Wednesday, at Dh.279,475,904.
The combined value of plot sales, flat-sales and villa-sale for the period was Dh.715.9mn, Dh.114.8mn and Dh.18.36mn respectively.
The Construction sector in Dubai, in the meanwhile, is well up-to-the mark, and is on par with the surging demand for space in the emirate.
Trakhees, the Civil Engineering Department of Ports, Customs and Free Zone Corporation has issued an average of 250 permits per day for construction of buildings in Dubai last year.
The Managing Director of Trakhees, Nazek Al Sabbagh, said "The growth in construction sector of Dubai, is ahead of demand, and recorded significant growth last year. Dubai is a world-class city which will see numerous state-of-the-art buildings in days to come."
Also, with the maturing markets of Dubai real estate and construction sectors, the emirate witnessed a considerable drop (from 30% in 2006 to 10% in 2007) in number of construction violations during the past year.
Labels: Real Estate News, Sales
Dubai Properties to lease commercial, residential and retail units
Saturday, February 16, 2008
Dubai Properties, the developer owned by Dubai government, have announced their plans to launch about 5000 commercial, residential and retail units from a vast range of projects for leasing this year.
Apart from this, Dubai Properties will open about 100 outlets at 'The Walk' in Jumeirah Beach Residence by April, including Mothercare, Fat Face, Starbucks, Subway, Boots, Damas, Giordano, Bata, Tips & Toes, and Al Rasasi. An additional 300 outlets will be opened by June, says a company statement.
The Chief Executive, Mohammad Bin Braik, said "Apart from developing unique communities, the Dubai Properties remains committed in ensuring the timely release of its completed units. Following the huge success last year, we look forward to a year of massive business expansion and project handovers."
He continued that, the commercial and residential units, and the launch of other new projects, will meet the increasing demand of the emirate. In the meanwhile, DP will lease about 2568 units out of the 2611 units, available in various areas in Dubai, including, Cordoba Villas, JBR, Dubai HealthCare City, Al Quoz Community, Housing and DP staff accommodation.
In 2007, the jumeirah Beach Residence was the first freehold project to be completed, when about 6500 apartments across 36 residential towers, were delivered, housing more than 2000 families.
The year 2008 will be another milestone for Dubai Properties, with 5028 flats, and villas, being added to its leasing portfolio in Mirdif areas, and additional units in the Office Park Building, Executive Towers, and Al Quoz Community Housing. With this, the total number of units for leasing at Dubai Properties will touch 7600 in number.
Apart from this, Dubai Properties will open about 100 outlets at 'The Walk' in Jumeirah Beach Residence by April, including Mothercare, Fat Face, Starbucks, Subway, Boots, Damas, Giordano, Bata, Tips & Toes, and Al Rasasi. An additional 300 outlets will be opened by June, says a company statement.
The Chief Executive, Mohammad Bin Braik, said "Apart from developing unique communities, the Dubai Properties remains committed in ensuring the timely release of its completed units. Following the huge success last year, we look forward to a year of massive business expansion and project handovers."
He continued that, the commercial and residential units, and the launch of other new projects, will meet the increasing demand of the emirate. In the meanwhile, DP will lease about 2568 units out of the 2611 units, available in various areas in Dubai, including, Cordoba Villas, JBR, Dubai HealthCare City, Al Quoz Community, Housing and DP staff accommodation.
In 2007, the jumeirah Beach Residence was the first freehold project to be completed, when about 6500 apartments across 36 residential towers, were delivered, housing more than 2000 families.
The year 2008 will be another milestone for Dubai Properties, with 5028 flats, and villas, being added to its leasing portfolio in Mirdif areas, and additional units in the Office Park Building, Executive Towers, and Al Quoz Community Housing. With this, the total number of units for leasing at Dubai Properties will touch 7600 in number.
Labels: Dubai Real Estate, Real Estate News
Luxury Villas, much in demand in Dubai
Sunday, February 10, 2008
The exciting response for Polo Homes developed by Emaar Properties, one again strongly highlights the need for luxury lifestyles and exclusive living in Dubai.
Villas being more sought-after, the elite Polo Homes, recorded unprecedented home-owner interest, the company mentioned in their statement.
Located within the Arabian Ranches, the Polo Homes, which are just 71 in number, is one of the most luxurious residential communities, ever launched by Emaar. It is a true reflection of the vast range of home options that the company offers to satisfy customer requirements. The owners of Polo Homes get to enjoy various membership privileges at the Dubai Polo and Equestrian Club, inclusive of access to modern clubhouse with specialty restaurants and spa, international equestrian events, an array of leisure and recreational facilities, and two polo fields.
The Sales Director of Emaar, Saif Al Mansoori says "Villas sell like hot cakes in Dubai, and the overwhelming customer response for Polo Homes, highlights the demand for exclusive homes with distinctive lifestyles. Polo Homes signify Emaar's competency to deliver fresh perspective to property development. The development has been created focusing on the requirements of residents, who enjoy being linked to the current equestrian-related events at their doorstep."
Apart from the leisure facilities at the Equestrian Club, the residents also get easy access to the Arabian Ranches Golf Course, schools, retail outlets, children play areas, and health and fitness amenities, located in close proximity within the Arabian Ranches development.
The two-storey villas of the Polo Homes remain detached, and comprise five to six bedrooms that reflect Andalusian architecture with every minute detail being taken care off. The villas possess spacious central courtyards, terracotta roof tiles and are spacious enough for unique and inspirational landscaping opportunities.
Polo Homes can be accessed from three ring roads that lead to Sharjah and Abu Dhabi. It is located in close proximity to the main centers of Dubai, including, the Dubai Internet City, Dubai Media City, and the Jebel Ali Free Zone.
Villas being more sought-after, the elite Polo Homes, recorded unprecedented home-owner interest, the company mentioned in their statement.
Located within the Arabian Ranches, the Polo Homes, which are just 71 in number, is one of the most luxurious residential communities, ever launched by Emaar. It is a true reflection of the vast range of home options that the company offers to satisfy customer requirements. The owners of Polo Homes get to enjoy various membership privileges at the Dubai Polo and Equestrian Club, inclusive of access to modern clubhouse with specialty restaurants and spa, international equestrian events, an array of leisure and recreational facilities, and two polo fields.
The Sales Director of Emaar, Saif Al Mansoori says "Villas sell like hot cakes in Dubai, and the overwhelming customer response for Polo Homes, highlights the demand for exclusive homes with distinctive lifestyles. Polo Homes signify Emaar's competency to deliver fresh perspective to property development. The development has been created focusing on the requirements of residents, who enjoy being linked to the current equestrian-related events at their doorstep."
Apart from the leisure facilities at the Equestrian Club, the residents also get easy access to the Arabian Ranches Golf Course, schools, retail outlets, children play areas, and health and fitness amenities, located in close proximity within the Arabian Ranches development.
The two-storey villas of the Polo Homes remain detached, and comprise five to six bedrooms that reflect Andalusian architecture with every minute detail being taken care off. The villas possess spacious central courtyards, terracotta roof tiles and are spacious enough for unique and inspirational landscaping opportunities.
Polo Homes can be accessed from three ring roads that lead to Sharjah and Abu Dhabi. It is located in close proximity to the main centers of Dubai, including, the Dubai Internet City, Dubai Media City, and the Jebel Ali Free Zone.
Labels: Emaar, Luxury Homes, Real Estate News, Villa Projects
Amlak's investment portfolio exceeds Dh.4.5bn
Wednesday, February 06, 2008
One of the leading home financiers in Dubai, Amlak Finance, revealed that its real estate investment portfolio has grown by more than Dh.4.5bn, following the six million square feet of land acquisition from the Dubai Government.
This newly acquired land, with a gross floor area of 8.5million square feet, is located at Al Warqa on the Emirates Road, and will be developed as a multi-purpose development, which would further strengthen Amlak's position as the lead real estate finance and investment company.
The new community in Al Warqa, namely Warqa Heights will have the capacity to house 40,000 people and comprise commercial, residential and retail space. The master-plan is currently finalzed by Tamdeen and Amlak, and the plots will be handed over to developers and investors later in the year.
Amlak focuses on acquiring various mixed-use properties, both commercial and residential. Amlak had announced a net profit of 758% this year, towards end of last year. Amlak currently has its operations in Saudi Arabia, Egypt, Jordan, Qatar, and is considering moving into Bahrain.
This newly acquired land, with a gross floor area of 8.5million square feet, is located at Al Warqa on the Emirates Road, and will be developed as a multi-purpose development, which would further strengthen Amlak's position as the lead real estate finance and investment company.The new community in Al Warqa, namely Warqa Heights will have the capacity to house 40,000 people and comprise commercial, residential and retail space. The master-plan is currently finalzed by Tamdeen and Amlak, and the plots will be handed over to developers and investors later in the year.
Amlak focuses on acquiring various mixed-use properties, both commercial and residential. Amlak had announced a net profit of 758% this year, towards end of last year. Amlak currently has its operations in Saudi Arabia, Egypt, Jordan, Qatar, and is considering moving into Bahrain.
Labels: Mortgages, Real Estate News
DMCC completes delivery of Almas Tower offices
Saturday, January 12, 2008
Dubai Multi Commodities Center (DMCC) has completed the delivery of offices in the Almas Tower to its diamond sector members. This move was initiated to establish a diamond industry cluster in Dubai.The Almas Tower is DMCC's flagship tower, located within the Jumeirah Lakes Towers development, built to cater to the particular needs of the diamond industry.
During a ceremony held yesterday at Monarch Hotel in Dubai, the keys were handed over to member companies, who are to occupy the 3-20 of Almas Tower. It is up to the clients now, to complete their individual fit outs prior to occupying their new offices.
The Almas Tower marks a major step forward towards realizing the objectives of DMCC to establish a dedicated market place, providing industry-specific market infrastructure, and a range of amenities for diamond trade in Dubai. The Almas Tower will offer an entire range of diamond trade related facilities, and will house the Dubai Diamond Exchange, the one and only diamond exchange in the region, said Ahmed bin Sulayem, the DMCC Executive Chairman.
The remaining phases of the tower will be handed over during the next couple of months.
Labels: Jumeirah-Lake-Towers, Office Space, Real Estate News
Abu Dhabi to showcase the unique concept of Building for Today
Friday, January 11, 2008
"Building for Today", a conceptual design for a skyscraper, which can do "everything that a tree can do, except replicate" will be presented by a design visionary at the Abu Dhabi World Future Energy Summit, to be held in Abu Dhabi next month.William McDonough, was commissioned by Fortune magazine, to come up with a design for skyscraper office tower, which would bring about a 100 percent impact on people and place. Eversince McDonough and his team embarked on the project, they have been approached by numerous companies interested in turning his idea into reality.
Speaking during an interview, McDonough said "We actually came up with 'a building for the present', something that has been possible today, which incorporates the idea of building like a tree - A building that receives energy from sun, grows food, builds soil, purifies water, provides habitat for hundreds of species, changes colors with seasons, and creates micro-climates. A building that does everything that a tree would do, except self-replicate."
McDonough will discuss the idea during the World Future Energy Summit, due to be held in Abu Dhabi between the 21st and 23rd of January, and he will be joined in Abu Dhabi by other prominent architects. This initiative emphasizes on education, research and investment in the future of energy and environmental sustainability.
Labels: Abu Dhabi, Consultancy, Real Estate News
RERA announces first list of Real Estate developers in Dubai
Thursday, January 03, 2008
Going by the Law No.9 of 2007, the Real Estate Regulatory Agency (RERA) has announced its first list of realty developers that includes more than 400 companies holding real estate developer license, thereby maintaining transparency in Dubai. However, it has been said that a few companies, which had earlier entered into a special one-to-one agreement, has been exempted from opening the project security accounts.
RERA usually grants permission to licensed companies and projects, for opening of project security accounts, according to special agreement. The investors have been warned against purchasing or investing on real estate companies that do not hold the necessary Agency license required by the real estate companies, for legal transactions.
The Chief Executive of RERA, Marwan bin Galita, has said that unlicensed companies would have major difficulties in marketing and selling their projects, through media outlets, once the list has been issued.
RERA usually grants permission to licensed companies and projects, for opening of project security accounts, according to special agreement. The investors have been warned against purchasing or investing on real estate companies that do not hold the necessary Agency license required by the real estate companies, for legal transactions.
The Chief Executive of RERA, Marwan bin Galita, has said that unlicensed companies would have major difficulties in marketing and selling their projects, through media outlets, once the list has been issued.
Labels: Dubai Real Estate, Real Estate News
Khuyool to invest in 13 realty projects in Dubai totaling to Dh.3bn
Thursday, December 27, 2007
Khuyool Investments has announced an investment of Dh.3billion in about 13 real estate projects in Dubai, revealed top officials of the company.
The Chairman of Khuyool Investments, Fahad Ali Moosa, said these include 10 projects, with five high-rise towers in Jumeirah Village South, and five mid-rise buildings. There will also be three towers being built in the Downtown Jebel Ali, as this is the beginning of a long journey.
He continued - Our first project, the Abjar Tower, with 64 storey, has received tremendous response from the market, and we are confident that the demand would continue to drive our future projects.
The company has been active in the Sharjah real estate sector for quite some time, and has just entered the Dubai market.
Strong housing demand, coupled with high oil price and massive investments in infrastructure is drawing investors to Dubai's real estate market.
The Chairman of Khuyool Investments, Fahad Ali Moosa, said these include 10 projects, with five high-rise towers in Jumeirah Village South, and five mid-rise buildings. There will also be three towers being built in the Downtown Jebel Ali, as this is the beginning of a long journey.
He continued - Our first project, the Abjar Tower, with 64 storey, has received tremendous response from the market, and we are confident that the demand would continue to drive our future projects.
The company has been active in the Sharjah real estate sector for quite some time, and has just entered the Dubai market.
Strong housing demand, coupled with high oil price and massive investments in infrastructure is drawing investors to Dubai's real estate market.
Labels: Real Estate Company, Real Estate News, Real Estate Projects
GCC Realty prices expected to continue in the current pace
Wednesday, December 05, 2007
The real estate prices in Gulf Countries will continue to remain as in the present, due to land scarcity and fluidity caused by surging oil prices and mounting speculations, revealed a special report.
A weekly report by Al-Masar Group states that the inflation in building & construction sector in Gulf, has reached fresh levels through construction of 2837 projects, mostly in UAE, Saudi Arabia, at an estimated value of $2.4trillion.
A recent study by a Dubai-based Research Company, 'Proleads', states that the King Abdullah Economic City, is the largest project, currently in progress in the region, which is worth around $120billion.
Next in line, is the 'City of Silk' in Kuwait, costing about $86billion, followed by the Dubailand in UAE, which costs around $60billion.
However, the report depicted conflicting figures and statistics, depending on the size of planned or under-construction projects. Massive projects, which include industrial islands and skyscrapers, lie behind the growth of regional construction and building sector, and huge boom in the sector, has led to better maintenance services, facilitated construction, overhauled utility management and helped a high demand for the sector.
The size of utility management market in Gulf countries, except Saudi Arabia, touched Dh.17.72bn during 2006, and is expected to grow up by 15.3 percent by 2012, stated the report.
A weekly report by Al-Masar Group states that the inflation in building & construction sector in Gulf, has reached fresh levels through construction of 2837 projects, mostly in UAE, Saudi Arabia, at an estimated value of $2.4trillion.A recent study by a Dubai-based Research Company, 'Proleads', states that the King Abdullah Economic City, is the largest project, currently in progress in the region, which is worth around $120billion.
Next in line, is the 'City of Silk' in Kuwait, costing about $86billion, followed by the Dubailand in UAE, which costs around $60billion.
However, the report depicted conflicting figures and statistics, depending on the size of planned or under-construction projects. Massive projects, which include industrial islands and skyscrapers, lie behind the growth of regional construction and building sector, and huge boom in the sector, has led to better maintenance services, facilitated construction, overhauled utility management and helped a high demand for the sector.
The size of utility management market in Gulf countries, except Saudi Arabia, touched Dh.17.72bn during 2006, and is expected to grow up by 15.3 percent by 2012, stated the report.
Labels: Market Trends, Property Prices, Real Estate News
Al Moosa plans UAE expansion
Friday, November 16, 2007
Al Moosa Enterprises, the owner and operator of Golden Sands Hotel Apartments in Dubai, announced plans to open other properties under the same brand name in Sharjah, Fujairah and Abu Dhabi.
The current portfolio of Al Moosa comprises serviced apartments with 11 Golden Sands, 3 Silver Sands, and an inventory of 1800 accommodation units.
The General Manager of Golden Sands, Mohammad Khoori, said at present Al Moosa plans to have atleast one Golden Sands in Sharjah, Abu Dhabi and Fujairah.
Khoori added that the group also plans to invest in several other new hotels, managed by international chains, while the negotiations are also on for management contract for a four-star hotel in Jumeirah Beach Residence, and a five-star hotel in Palm Jumeirah.
Apart from this, Al Moosa is also the owner of two Hilton-managed properties, and one Four Points Sheraton hotel, which is operated by Starwood in Dubai.
The current portfolio of Al Moosa comprises serviced apartments with 11 Golden Sands, 3 Silver Sands, and an inventory of 1800 accommodation units.
The General Manager of Golden Sands, Mohammad Khoori, said at present Al Moosa plans to have atleast one Golden Sands in Sharjah, Abu Dhabi and Fujairah.
Khoori added that the group also plans to invest in several other new hotels, managed by international chains, while the negotiations are also on for management contract for a four-star hotel in Jumeirah Beach Residence, and a five-star hotel in Palm Jumeirah.
Apart from this, Al Moosa is also the owner of two Hilton-managed properties, and one Four Points Sheraton hotel, which is operated by Starwood in Dubai.
Labels: Real Estate Company, Real Estate News, UAE
KM Properties signs deal with Amlak Finance
Thursday, November 15, 2007
KM Properties has entered into a deal with Amlak Finance, to provide its investors and home owner's the option of offering mortgages for 85% of their properties.
KM Properties had earlier entered into financing deals with National Bank of Dubai (NBD). The finance options are now made available for the new launch by KM Properties, the TAMANI Arts Offices development at Business Bay in Dubai.
TAMANI Arts Offices is an iconic mixed-use development complex in Business Bay, comprising 20 storey tower near Burj Dubai, with 32% of tower's units sold at the show.
Another recent launch by KM Properties, the Artisan Cluster in Business Bay, worth Dh.1.3bn, announced during the Cityscape Dubai 2007 exhibition, has earned 111% capital gain.
The Executive Director and Co-Founder of KM Properties, Khulood Abdulla Al Rostamani, has announced that the company is offering further incentives to those investors who reserve units during the first phase of public sale, and these incentives will be compounded by the company's easy financing options, provided by NBD and Amlak.
KM Properties had earlier entered into financing deals with National Bank of Dubai (NBD). The finance options are now made available for the new launch by KM Properties, the TAMANI Arts Offices development at Business Bay in Dubai.TAMANI Arts Offices is an iconic mixed-use development complex in Business Bay, comprising 20 storey tower near Burj Dubai, with 32% of tower's units sold at the show.
Another recent launch by KM Properties, the Artisan Cluster in Business Bay, worth Dh.1.3bn, announced during the Cityscape Dubai 2007 exhibition, has earned 111% capital gain.
The Executive Director and Co-Founder of KM Properties, Khulood Abdulla Al Rostamani, has announced that the company is offering further incentives to those investors who reserve units during the first phase of public sale, and these incentives will be compounded by the company's easy financing options, provided by NBD and Amlak.
Labels: Mortgages, Real Estate News
TAMANI Art Offices undergoes public launch at Artisan Cluster, Business Bay
Thursday, November 08, 2007
The latest luxury realty development by KM Properties, the real estate development arm of KM Holdings, the TAMANI Art Offices, underwent public launch at the Artisan Cluster in Business Bay, Dubai.
TAMANI Arts Offices is an iconic mixed-use realty development complex, comprising a 20 storey tower. About 32 percent of the project was already sold to investors during its pre-launch at the Cityscape, Dubai.
The twenty storey glass and steel tower with latest cutting-edge technology will make a flawless business platform and grow to be the business epicenter of the prestigious Business Bay development in Dubai. Strategically located in the Artisan Cluster in Business Bay, the TAMANI Arts Offices will offer convenient and easy access to the most notable recreational and landmark destinations, including Dubai Mall, Old Town, Burj Dubai, and the Sheikh Zayed Road.
Spreading across two million square feet in area, the development comprises clusters of iconic towers which include residential buildings, commercial towers and hotels, designed by renowned design engineers and architects of Terry Farrel and Partners, the renowned designers behind the Greenwich Peninsula in London.
TAMANI Arts Offices will provide the best boutique offices, a grand reception and lobby lounge, spacious retail outlets, on-site art museums, hi-tech business offices and IT services, including IT infrastructure security and hi-speed internet access. The TAMANI owners and tenants will also be benefited by the exclusive facility management services, which include 24-hour concierge and valet, efficient housekeeping, on-call maintenance, and engineering services, access to meeting rooms and business centers, and banqueting and catering services on request.
KM Properties has come forward with Escrow facilities by joining hands with National Bank of Dubai, and has also entered into agreements with Amlak Financing, which will offer mortgages for about 85% of the purchase price.
TAMANI Arts Offices is an iconic mixed-use realty development complex, comprising a 20 storey tower. About 32 percent of the project was already sold to investors during its pre-launch at the Cityscape, Dubai.
The twenty storey glass and steel tower with latest cutting-edge technology will make a flawless business platform and grow to be the business epicenter of the prestigious Business Bay development in Dubai. Strategically located in the Artisan Cluster in Business Bay, the TAMANI Arts Offices will offer convenient and easy access to the most notable recreational and landmark destinations, including Dubai Mall, Old Town, Burj Dubai, and the Sheikh Zayed Road.
Spreading across two million square feet in area, the development comprises clusters of iconic towers which include residential buildings, commercial towers and hotels, designed by renowned design engineers and architects of Terry Farrel and Partners, the renowned designers behind the Greenwich Peninsula in London.
TAMANI Arts Offices will provide the best boutique offices, a grand reception and lobby lounge, spacious retail outlets, on-site art museums, hi-tech business offices and IT services, including IT infrastructure security and hi-speed internet access. The TAMANI owners and tenants will also be benefited by the exclusive facility management services, which include 24-hour concierge and valet, efficient housekeeping, on-call maintenance, and engineering services, access to meeting rooms and business centers, and banqueting and catering services on request.
KM Properties has come forward with Escrow facilities by joining hands with National Bank of Dubai, and has also entered into agreements with Amlak Financing, which will offer mortgages for about 85% of the purchase price.
Labels: Business Bay, Office Space, Real Estate News
Active Realty Projects in Gulf region crosses $1trillion mark
Wednesday, October 24, 2007
According to recent reports on current active realty projects in the region, the Arabian Gulf real estate construction boom has crossed the $1trillion mark.
The scale of new developments in the GCC countries of Oman, Qatar, Saudi Arabia, UAE and Bahrain has been quite impressive. As per data from Proleads, the Dubai-based research company, there are about 885 active civil building projects in the region on the whole, with values of more than $10million each.
The total value of the real estate projects alone, covering more than $1trillion, includes commercial and residential sectors, educational establishments, cinemas, theatres, healthcare facilities, sports facilities, theme parks, hotels and mixed-use and retail developments. Among the active projects that have been included in the reports are those in which there has been some amount of study, planning, designing, construction or bidding. The report excludes buildings that are already complete and those that are in conceptual stage.
During the recent Cityscape 2007, the biggest business-to-business real estate show in Dubai, the Saudi Arabia and UAE accounted for lion's share of civil building developments. The UAE alone recorded a total of 390 projects, with a total value of more than $430billion. This was followed by Saudi Arabia with 330 projects worth $409 billion.
Among the top five active civil projects in the GCC worth more than $358billion are:
The scale of new developments in the GCC countries of Oman, Qatar, Saudi Arabia, UAE and Bahrain has been quite impressive. As per data from Proleads, the Dubai-based research company, there are about 885 active civil building projects in the region on the whole, with values of more than $10million each.
The total value of the real estate projects alone, covering more than $1trillion, includes commercial and residential sectors, educational establishments, cinemas, theatres, healthcare facilities, sports facilities, theme parks, hotels and mixed-use and retail developments. Among the active projects that have been included in the reports are those in which there has been some amount of study, planning, designing, construction or bidding. The report excludes buildings that are already complete and those that are in conceptual stage.
During the recent Cityscape 2007, the biggest business-to-business real estate show in Dubai, the Saudi Arabia and UAE accounted for lion's share of civil building developments. The UAE alone recorded a total of 390 projects, with a total value of more than $430billion. This was followed by Saudi Arabia with 330 projects worth $409 billion.
Among the top five active civil projects in the GCC worth more than $358billion are:
- The King Abdullah Economic City in Saudi Arabia worth $120 billion
- Kuwait's Silk City project worth $86 billion
- Dubai Investment's Dubailand worth $60 billion
- The Prince Abdulaziz Bin Mousaed Economic City in Saudi Arabia worth $53 billion
- Abu Dhabi's Yas Island development worth $39 billion
Labels: Cityscape, Latest News, Real Estate News, Real Estate Projects
Reclamation of first and largest development in The World islands complete
Tuesday, October 23, 2007
Oqyana World First has announced 100% reclamation of their islands from the Arabian Gulf. Oqyana World First is the first and largest development of the World Islands in Dubai. This project, constitutes the Australasian islands of The World, and is expected to set a benchmark for all other World developers.
The land reclamation process, which has been completed, comprises twenty islands, which are embedded into four separate land masses serving as construction platforms. On completion, these sand platforms will be scoured out to form twenty individual islands.
Oqyana Islands were initially purchased during 2005, and are being created as a lifestyle destination community, with 2500 apartments, 2 hotels constituting a seven-star and a luxury spa resort, and 200 villas.
Other features in the development include leisure facilities, performing arts, a conference center, cafes, restaurants and island lifestyle specific retail.
Oqyana World First, located 4kms from Dubai coastline, will occupy a total area of 1.87million square meters, and a total upland area of 417,000 square meters. It will contain 17kms of inter-linked walkways, with more than 1500 private yacht berths and 15,000 meters of shore front and marina.
The COO of Oqyana Limited, Dr. Wadad Al Suwayeh, expressing his excitement over achieving the milestone, said "It has been achieved earlier than planned, and as far as Dubai terminology goes, this is a great feat. We have worked closely with The World LLC, and are pleased to be ahead to schedule."
The land reclamation process, which has been completed, comprises twenty islands, which are embedded into four separate land masses serving as construction platforms. On completion, these sand platforms will be scoured out to form twenty individual islands.
Oqyana Islands were initially purchased during 2005, and are being created as a lifestyle destination community, with 2500 apartments, 2 hotels constituting a seven-star and a luxury spa resort, and 200 villas.
Other features in the development include leisure facilities, performing arts, a conference center, cafes, restaurants and island lifestyle specific retail.
Oqyana World First, located 4kms from Dubai coastline, will occupy a total area of 1.87million square meters, and a total upland area of 417,000 square meters. It will contain 17kms of inter-linked walkways, with more than 1500 private yacht berths and 15,000 meters of shore front and marina.
The COO of Oqyana Limited, Dr. Wadad Al Suwayeh, expressing his excitement over achieving the milestone, said "It has been achieved earlier than planned, and as far as Dubai terminology goes, this is a great feat. We have worked closely with The World LLC, and are pleased to be ahead to schedule."
Labels: Construction Projects, Real Estate News
Dubai rentals tripled during the past two years
Monday, October 22, 2007
According to reports by Asteco, a leading property consultancy, the rental rates in Dubai has almost tripled and has increased to an astounding Dh.270 to Dh.280 per square feet from Dh.90 to Dh.100 per square feet during the year 2005.
The commercial property sector in Dubai has witnessed major boost in office rents during the past few years, due to the high-demand generated by continuous influx of multinationals setting up their base in Dubai and the growth in existing businesses.
The Director -Research Valuation & Consultancy at Asteco has stated that this increase in commercial rents will continue until 2008, due to the delay in construction. But towards the year 2009, majority of new supplies will hit the market, thereby easing rental hikes.
The Asteco report reveals that rent on Shaikh Zayed Road has risen to Dh.350-Dh.375 per square foot, as against Dh.220-Dh.240 during 2006. Few other areas witnessing increased rentals are the Karama, and Bur Dhbai at Dh.265 and Dh.280 per square foot respectively. This reveals a corresponding increase of 51 and 24 percent respectively, over the rates of third quarter 2006.
The rents in Dubai apartments have increased by 25 percent from 2005 to 2006 and by 18 percent from 2006 to 2007.
The commercial property sector in Dubai has witnessed major boost in office rents during the past few years, due to the high-demand generated by continuous influx of multinationals setting up their base in Dubai and the growth in existing businesses.
The Director -Research Valuation & Consultancy at Asteco has stated that this increase in commercial rents will continue until 2008, due to the delay in construction. But towards the year 2009, majority of new supplies will hit the market, thereby easing rental hikes.
The Asteco report reveals that rent on Shaikh Zayed Road has risen to Dh.350-Dh.375 per square foot, as against Dh.220-Dh.240 during 2006. Few other areas witnessing increased rentals are the Karama, and Bur Dhbai at Dh.265 and Dh.280 per square foot respectively. This reveals a corresponding increase of 51 and 24 percent respectively, over the rates of third quarter 2006.
The rents in Dubai apartments have increased by 25 percent from 2005 to 2006 and by 18 percent from 2006 to 2007.
Labels: Dubai City, Dubai Real Estate, Real Estate News, Rentals
Retail space in Dubai to exceed four million square meters by 2010
Thursday, October 18, 2007
The shopping malls in Dubai, particularly the old and small ones, will soon begin to experience the pressure of decline in rents, as the city is all set to create an additional two million square meters of leasable area within a three year period, a real estate consultancy has revealed.
In that case, the supply of retail space for shopping malls in Dubai will exceed four million square meters by 2010, as against the current 1.8million square meters. Colliers International, in its report, mentioned that this huge supply of retail space will bring-forth short-term oversupply in the market. The smaller and older malls will then see sharp increase in vacancies, coupled with fall in rentals.
With an aim to be a top tourist and shopping destination, Dubai is building large shopping centers. UAE ranks next to Hong Kong in recreational shopping. The report states "These mega malls will strongly root the Dubai dominance in the retail industry across the region."
In that case, the supply of retail space for shopping malls in Dubai will exceed four million square meters by 2010, as against the current 1.8million square meters. Colliers International, in its report, mentioned that this huge supply of retail space will bring-forth short-term oversupply in the market. The smaller and older malls will then see sharp increase in vacancies, coupled with fall in rentals.With an aim to be a top tourist and shopping destination, Dubai is building large shopping centers. UAE ranks next to Hong Kong in recreational shopping. The report states "These mega malls will strongly root the Dubai dominance in the retail industry across the region."
Labels: Commercial Property, Real Estate News, Shopping Mall
'Demand could surpass supply during the next decade in Abu Dhabi' say reports
Thursday, October 11, 2007
According to a report by The National Investor, the demand for housing in Abu Dhabi, is likely to surpass supply for the next decade, spiraling rent rates.
"We expect a situation of oversupply to threaten the value of local property market," reports the Investment Bank.
The Bank advised that investors who are interested in getting the best out of Abu Dhabi property market, need to stay away from single, direct equity investments, which will bring significant risk and volatility.
About 140,000 units are expected to be supplied in the market by 2009 and 2010, in comparison to just 10,000 during 2008 and 2009. Also, the demand during these three years, could average to about 18,000 units per year.
"The next two years are likely to be slow in terms of residential supply, and hence rents would continue to remain stable," the Bank said.
Companies such as Sorouh Real Estate, and Aldar Properties, are developing about $121 billion worth of properties in Abu Dhabi, reported the Bank.
"We expect a situation of oversupply to threaten the value of local property market," reports the Investment Bank.
The Bank advised that investors who are interested in getting the best out of Abu Dhabi property market, need to stay away from single, direct equity investments, which will bring significant risk and volatility.
About 140,000 units are expected to be supplied in the market by 2009 and 2010, in comparison to just 10,000 during 2008 and 2009. Also, the demand during these three years, could average to about 18,000 units per year.
"The next two years are likely to be slow in terms of residential supply, and hence rents would continue to remain stable," the Bank said.
Companies such as Sorouh Real Estate, and Aldar Properties, are developing about $121 billion worth of properties in Abu Dhabi, reported the Bank.
Labels: Abu Dhabi, Latest News, Market Trends, Real Estate News
Cirrus Development- the first in Dubai to form a Trust Account, prior to announcing a single property
Wednesday, October 10, 2007
Cirrus Developments, a leading Dubai real estate developer, has entered into a Partnership with Badr Al-Islami, the Islamic Banking Division of Mashreq, to form a Trust Management Account for the security of property buyers.
The Partners have announced an awareness campaign to keep the public informed about the new Emirate of Dubai Property Law (Law No.8, 2007) that offers protection for investors buying 'off-plan'.
Cirrus Developments holds the credit of being the first property developer in Dubai to have set up a Trust Account even before announcing a single property offering in the market. Also, Badr Al Islami becomes the first finance house to receive approval from Dubai Land Department to provide these accounts.
The account has been activated based on the new Law No.8 of 2007 that guarantee accounts of real estate developments in Dubai that came into effect in July 2007. The law aims to protect purchasers in off-plan transactions by creating trust accounts so that the installation payments are managed.
The Chairman & CEO of Cirrus Developments, Behnam Eshragh, said "As a developer, we volunteered to be part of the Trust Management account six months prior to the time when the law was passed. The new property law is welcome news for property buyers in Dubai. We aim to offer our best possible experience for our customers, and this is a mark of our commitment in this area."
The Partners have announced an awareness campaign to keep the public informed about the new Emirate of Dubai Property Law (Law No.8, 2007) that offers protection for investors buying 'off-plan'.Cirrus Developments holds the credit of being the first property developer in Dubai to have set up a Trust Account even before announcing a single property offering in the market. Also, Badr Al Islami becomes the first finance house to receive approval from Dubai Land Department to provide these accounts.
The account has been activated based on the new Law No.8 of 2007 that guarantee accounts of real estate developments in Dubai that came into effect in July 2007. The law aims to protect purchasers in off-plan transactions by creating trust accounts so that the installation payments are managed.
The Chairman & CEO of Cirrus Developments, Behnam Eshragh, said "As a developer, we volunteered to be part of the Trust Management account six months prior to the time when the law was passed. The new property law is welcome news for property buyers in Dubai. We aim to offer our best possible experience for our customers, and this is a mark of our commitment in this area."
Labels: Real Estate Company, Real Estate News
Rental Disputes Committee warns landlords against change residential buildings to hotel apartments
Tuesday, October 09, 2007
A senior official in the Abu Dhabi Rental Disputes Resolution Committee has clarified that Landlords cannot evict tenants for the sole purpose of change of business, from residential buildings to hotel apartments.
The Chairman of the Resolution Committee, Mohammad Rashid Al Hameli, said "Changing business from residential building to hotel apartments is not a legal ground to evict tenants".
Al Hameli mentioned that legally landlords do not own the right to evict tenants, unless in specific cases, such as approved demolishing for personal use, or for tenants failure to pay the rent, or subletting the property without the approval from landlord or for violating public norms.
In case of demolishing the building, the tenant should be informed about it six months in advance, and in case it is found that the landlord has not been living in the property after evicting the tenants under the pretext of personal use, or if the property has been re-rented to another party, the tenant can place a complaint before the committee, said Al Hameli.
Al Hameli also clarified that tenants should not obey any eviction orders by the landlords or other authorities, unless the eviction order has been approved by the Rental Disputes Resolution Committee. Speaking on eviction notices, Al Hameli advised that tenants have the right to receive notices but should sign clearly that although they are in receipt of the notice, the eviction order was rejected. At the end of tenancy contract, the tenants can then submit a complaint to the committee and deposit the rent or any installment pertaining to the building, as per the terms of contract in cash, so that it could be renewed.
It has been found that off-late, there is an increasing tendency for landlords to give away the building to hotel operators on a yearly lump sum rental basis so as to convert the building to hotel apartments.
Tenants have requested the Rental Dispute Resolution Committee to issue clear guidelines for tenants to understand their rights, particularly the circumstances under which they could be evicted from the building.
The Chairman of the Resolution Committee, Mohammad Rashid Al Hameli, said "Changing business from residential building to hotel apartments is not a legal ground to evict tenants".
Al Hameli mentioned that legally landlords do not own the right to evict tenants, unless in specific cases, such as approved demolishing for personal use, or for tenants failure to pay the rent, or subletting the property without the approval from landlord or for violating public norms.
In case of demolishing the building, the tenant should be informed about it six months in advance, and in case it is found that the landlord has not been living in the property after evicting the tenants under the pretext of personal use, or if the property has been re-rented to another party, the tenant can place a complaint before the committee, said Al Hameli.
Al Hameli also clarified that tenants should not obey any eviction orders by the landlords or other authorities, unless the eviction order has been approved by the Rental Disputes Resolution Committee. Speaking on eviction notices, Al Hameli advised that tenants have the right to receive notices but should sign clearly that although they are in receipt of the notice, the eviction order was rejected. At the end of tenancy contract, the tenants can then submit a complaint to the committee and deposit the rent or any installment pertaining to the building, as per the terms of contract in cash, so that it could be renewed.
It has been found that off-late, there is an increasing tendency for landlords to give away the building to hotel operators on a yearly lump sum rental basis so as to convert the building to hotel apartments.
Tenants have requested the Rental Dispute Resolution Committee to issue clear guidelines for tenants to understand their rights, particularly the circumstances under which they could be evicted from the building.
Labels: Property Law, Real Estate News, Rentals
'The era of expat private landlords is here, in Dubai': R&R Show
Thursday, October 04, 2007
'The era of the Private Landlord, with most of them being expats, is finally here,' goes the revelation by the Resale and Rental Property Show (R&R Show), which is the biggest local Property show in Dubai.
According to the statistics revealed by the show, among the 2500 visitors who participated in the show, 41% already owns property in Dubai, while 35% were on the look out for a property and 64% were to decide on buying or renting out and those owning and living in their own property touched 36%. As far as Dubai's realty sector is concerned, this turns out to be a positive indication.
According to the Marketing Director, DSL Exhibitions, Tessa Morris, although the percentage of private landlords who still seek to rent out or sell their properties remained at 11%, the figures this year, represents steady increase in comparison to the previous shows.
The R&R Show, which caters to the growing local market, revealing the dynamic nature of Dubai property market through useful surveys for real estate professionals has turned out to be an important event in the exhibition calendar in Dubai.
The R&R Show has been slated for the 8th and 9th February 2008 at Hotel Kempinski, in Ajman, displaying the real estate opportunities in Ajman, Ras Al Khaimah, Sharjah, Fujairah and Um Al Quwain.
According to the statistics revealed by the show, among the 2500 visitors who participated in the show, 41% already owns property in Dubai, while 35% were on the look out for a property and 64% were to decide on buying or renting out and those owning and living in their own property touched 36%. As far as Dubai's realty sector is concerned, this turns out to be a positive indication.
According to the Marketing Director, DSL Exhibitions, Tessa Morris, although the percentage of private landlords who still seek to rent out or sell their properties remained at 11%, the figures this year, represents steady increase in comparison to the previous shows.
The R&R Show, which caters to the growing local market, revealing the dynamic nature of Dubai property market through useful surveys for real estate professionals has turned out to be an important event in the exhibition calendar in Dubai.
The R&R Show has been slated for the 8th and 9th February 2008 at Hotel Kempinski, in Ajman, displaying the real estate opportunities in Ajman, Ras Al Khaimah, Sharjah, Fujairah and Um Al Quwain.
Labels: Property-show, Real Estate News
DWC signs pact with Dubai Land Department
Friday, September 28, 2007
Dubai World Central (DWC) recently entered into an MOU with Dubai Land Department (DLD) for providing land estimation, acquisition and sales, and legal and electronic services to DWC staff, developers and investors in the 140 sq km city in Jebel Ali.
The main investors across the DWC free zones are centered around, the Dubai World Central International Airport (JXB) -The DWC Aviation City and the Dubai Logistics City, and real estate units such as the DWC Residential City, DWC Golf City and DWC Commercial City, will collect information from the DLD.
The Dubai World Central, CEO-Real Estate, Khalid bin Harib said "The DWC project has received good support from the Dubai Government since its launch, which in turn has helped in continuing the development as per the vision of H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Vice-President and Prime Minister of UAE and Ruler of Dubai."
The agreement will enable the DWC and Land Department to together formulate a proper training programme, which enables the DWC real estate staff to understand the processes, systems and mechanisms of Land Sales and Management.
The electronic link between the two, will permit instant access and completion of procedures relating to land registration, and will facilitate legal proceedings pertaining to contractors and advisors.
At present, grading of the phase one in DWC Residential City is in progress, and the construction is expected to begin by January 2008.
"The Land Department has the right information, which we can share with this huge city, which is expected to be a landmark for the entire region," said Sultain bin Mujrin, the General Manager of Dubai Land Department.
DWC features mid-income housing at the DWC Residential City, while the Commercial City will have mixed-use development. The DWC Golf City, is designed for premium living and all DWC residents will have an access to the best amenities developing by DWC.
The main investors across the DWC free zones are centered around, the Dubai World Central International Airport (JXB) -The DWC Aviation City and the Dubai Logistics City, and real estate units such as the DWC Residential City, DWC Golf City and DWC Commercial City, will collect information from the DLD.The Dubai World Central, CEO-Real Estate, Khalid bin Harib said "The DWC project has received good support from the Dubai Government since its launch, which in turn has helped in continuing the development as per the vision of H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Vice-President and Prime Minister of UAE and Ruler of Dubai."
The agreement will enable the DWC and Land Department to together formulate a proper training programme, which enables the DWC real estate staff to understand the processes, systems and mechanisms of Land Sales and Management.
The electronic link between the two, will permit instant access and completion of procedures relating to land registration, and will facilitate legal proceedings pertaining to contractors and advisors.
At present, grading of the phase one in DWC Residential City is in progress, and the construction is expected to begin by January 2008.
"The Land Department has the right information, which we can share with this huge city, which is expected to be a landmark for the entire region," said Sultain bin Mujrin, the General Manager of Dubai Land Department.
DWC features mid-income housing at the DWC Residential City, while the Commercial City will have mixed-use development. The DWC Golf City, is designed for premium living and all DWC residents will have an access to the best amenities developing by DWC.
Labels: Dubai City, Freezones, Jebel-Ali, New Developments, Real Estate News, Real Estate Projects
Standard Chartered and Land Department enters into Escrow deal
Thursday, September 27, 2007
Standard Chartered, the leading international bank in UAE has announced their entry into an Escrow Account Agreement with Dubai Land Department (DLD).
Through this agreement, Standard Chartered will be formally authorized as an approved bank for opening and managing Escrow accounts of property developers registered with DLD.
This makes Standard Chartered as one among the other few banks in UAE to provide both Islamic Banking Escrow Accounts and Conventional Accounts, thereby giving a wider choice for potential property investors.
The signing ceremony at the DLD office, involved the participation of Sultan Butti bin Mirjin, the Director General of DLD, Nigel Jones, the CEO of Standard Chartered-UAE, and Sultan al Suwaidi, Chief Advisor of Standard Chartered-UAE.
Mirjin said "The Dubai Land Department has adopted a practical approach for development of existing legislation in the real estate sector of the emirate to ensure the safety of investors and to boost their confidence levels in this sector."
The agreement is inline with the new Law Number 8 of 2007, which was issued by Shaikh Mohammad bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE and Ruler of Dubai, and helps in safeguarding any party who goes on to sell a unit from a property development plan, before the actual completion of the project or during the construction phase. Such payments should be placed in an authorized Escrow agent accounts until the completion and delivery of the development.
Jones mentioned that recently Standard Chartered launched the first dedicated mortgage center in UAE in the Emaar Business Park, which revealed its commitment towards the property sector in UAE. This agreement further emphasizes the involvement of the Bank with the property sector, while highlighting the support that the Bank extends to the initiatives backed by government in UAE.
Through this agreement, Standard Chartered will be formally authorized as an approved bank for opening and managing Escrow accounts of property developers registered with DLD.This makes Standard Chartered as one among the other few banks in UAE to provide both Islamic Banking Escrow Accounts and Conventional Accounts, thereby giving a wider choice for potential property investors.
The signing ceremony at the DLD office, involved the participation of Sultan Butti bin Mirjin, the Director General of DLD, Nigel Jones, the CEO of Standard Chartered-UAE, and Sultan al Suwaidi, Chief Advisor of Standard Chartered-UAE.
Mirjin said "The Dubai Land Department has adopted a practical approach for development of existing legislation in the real estate sector of the emirate to ensure the safety of investors and to boost their confidence levels in this sector."
The agreement is inline with the new Law Number 8 of 2007, which was issued by Shaikh Mohammad bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE and Ruler of Dubai, and helps in safeguarding any party who goes on to sell a unit from a property development plan, before the actual completion of the project or during the construction phase. Such payments should be placed in an authorized Escrow agent accounts until the completion and delivery of the development.
Jones mentioned that recently Standard Chartered launched the first dedicated mortgage center in UAE in the Emaar Business Park, which revealed its commitment towards the property sector in UAE. This agreement further emphasizes the involvement of the Bank with the property sector, while highlighting the support that the Bank extends to the initiatives backed by government in UAE.
Labels: Dubai Real Estate, Mortgages, Property Law, Real Estate News
Damac eyes overseas markets
Monday, September 24, 2007
Damac Holding, the private property developer of Damac Properties, plans to develop substantial portfolio of overseas master developments, revealed the Chairman of Damac Holding, Hussain Sajwani.
Sajwani mentioned that the company already holds a major land bank in Saudi and Egypt, and has been planning to launch major mixed-use development.
The company has already launched 79 individual towers worth $18billion, which covers Lebanon, Jordan, Qatar, UAE, and Saudi Arabia. The only master development of the company till date is the Gamsha Bay project, worth $35 to $40 in Egypt.
Sajwani revealed that the company is currently on discussion with a number of governments in overseas countries regarding building master developments. Different markets have different constraints and opportunities. For instance, Qatar Government wants their own companies to act as master developer, limiting the opportunities for companies such as Damac, and hence the company is planning for only single projects there. On the other hand, certain other countries such as Egypt, has large land bank, and hence Gamsha Bay project has been the outcome there, mentioned Sajwani.
Damac is currently eyeing untapped markets such as India, Turkey, Pakistan, and North Africa. Sajwani told that these markets will be closely looked into during 2008, although this would require crossing major hurdles such as identifying suitable land plots and overseas bureaucracy.
Sajwani was of the opinion that although India has a major potential, the task of being able to secure a big piece of land in a good location for a big development could be time consuming.
As far as the domestic market is concerned, Dubai still plays a leading role and represents a major chunk of sales for Damac, agrees Sajwani. Currently Damac is in the process of launching new projects in the domestic markets and has already launched 16 projects during the past seven months, and is now planning to deliver two towers in the Jumeirah Lakes Towers master development towards the initial phase of next year.
Sajwani mentioned that the company already holds a major land bank in Saudi and Egypt, and has been planning to launch major mixed-use development.The company has already launched 79 individual towers worth $18billion, which covers Lebanon, Jordan, Qatar, UAE, and Saudi Arabia. The only master development of the company till date is the Gamsha Bay project, worth $35 to $40 in Egypt.
Sajwani revealed that the company is currently on discussion with a number of governments in overseas countries regarding building master developments. Different markets have different constraints and opportunities. For instance, Qatar Government wants their own companies to act as master developer, limiting the opportunities for companies such as Damac, and hence the company is planning for only single projects there. On the other hand, certain other countries such as Egypt, has large land bank, and hence Gamsha Bay project has been the outcome there, mentioned Sajwani.
Damac is currently eyeing untapped markets such as India, Turkey, Pakistan, and North Africa. Sajwani told that these markets will be closely looked into during 2008, although this would require crossing major hurdles such as identifying suitable land plots and overseas bureaucracy.
Sajwani was of the opinion that although India has a major potential, the task of being able to secure a big piece of land in a good location for a big development could be time consuming.
As far as the domestic market is concerned, Dubai still plays a leading role and represents a major chunk of sales for Damac, agrees Sajwani. Currently Damac is in the process of launching new projects in the domestic markets and has already launched 16 projects during the past seven months, and is now planning to deliver two towers in the Jumeirah Lakes Towers master development towards the initial phase of next year.
Labels: Damac Properties, International, Real Estate Company, Real Estate News
Nakheel targets to cater 200,000 residential units in Dubai
Saturday, September 22, 2007
Nakheel has announced its plans to create 200,000 residential units in Dubai over the next decade with the belief that the property market in Dubai would continue to grow.
Nakheel's Director-Investment projects, Lee, says "The market would require 200,000 to 400,000 residential units during the next ten years and Nakheel could supply half of these. As the demand has exceeded supply, which in turn has led to surge in house, rent and construction costs, more units are required to balance the acceleration."
Rents have risen sharply in Dubai during the recent years, adding to the inflation. Although plenty of new properties have come into the market, according to Lee, the market is far from getting saturated. Denying the concerns raised about saturation, Lee pointed out that consultants had pointed out about saturation hitting Dubai market, a couple of years ago, but it has not yet happened as there is a huge growth in Dubai.
The population in Dubai has grown by 26 percent (excluding the tourists) as per the statistics revealed by the Dubai Statistics Department.
Nakheel Sales and Marketing Director, Manal Shaheen, mentioned that the company aims to develop homes for two million people by the year 2020.
Nakheel's Director-Investment projects, Lee, says "The market would require 200,000 to 400,000 residential units during the next ten years and Nakheel could supply half of these. As the demand has exceeded supply, which in turn has led to surge in house, rent and construction costs, more units are required to balance the acceleration."
Rents have risen sharply in Dubai during the recent years, adding to the inflation. Although plenty of new properties have come into the market, according to Lee, the market is far from getting saturated. Denying the concerns raised about saturation, Lee pointed out that consultants had pointed out about saturation hitting Dubai market, a couple of years ago, but it has not yet happened as there is a huge growth in Dubai.
The population in Dubai has grown by 26 percent (excluding the tourists) as per the statistics revealed by the Dubai Statistics Department.
Nakheel Sales and Marketing Director, Manal Shaheen, mentioned that the company aims to develop homes for two million people by the year 2020.
Labels: Latest News, Market Trends, Nakheel, Real Estate News, Residential
Schon Properties awards the UAE grand prize winner with the key to Dubai Lagoon apartment
Schon Properties, together with Emarat and Dubai Summer Surprises, has awarded the UAE national, Khalid Ebrahim Hussain, with the key to his new apartment in Dubai Lagoon. Schon Properties are the developers behind the Dh.3billion Dubai Lagoon development.
The Chairman of Schon Properties, Nasir Husain, stated that the promotion was a huge success and expressed his happiness to present the new dream apartment to the grand prize winner, just a day before the commencement of Ramadan.
Schon Properties is a newly established holding company, which has numerous real estate projects in the UAE. Dubai Lagoon is a major development in their portfolio, built in the heart of Dubai Investment Park, covering about 6 million square feet of development area. The project comprises 53 buildings, comprising studios, single, double and triple bedrooms and penthouse apartments. The Schon Buisness Park is the first business park of its kind located in the Dubai Investment Park.
The Chairman of Schon Properties, Nasir Husain, stated that the promotion was a huge success and expressed his happiness to present the new dream apartment to the grand prize winner, just a day before the commencement of Ramadan.Schon Properties is a newly established holding company, which has numerous real estate projects in the UAE. Dubai Lagoon is a major development in their portfolio, built in the heart of Dubai Investment Park, covering about 6 million square feet of development area. The project comprises 53 buildings, comprising studios, single, double and triple bedrooms and penthouse apartments. The Schon Buisness Park is the first business park of its kind located in the Dubai Investment Park.
Labels: Dubai Real Estate, Lagoon, Real Estate News
Damac holds the credit of launching 79 towers in a five year span
Friday, September 21, 2007
Damac Properties has revealed that it has launched 79 towers throughout the region, during the past five years, making it the largest private property developers in the UAE.
Damac Holding, the real estate arm of Damac Properties and a Dubai-based company, has revealed that its $18billion portfolio of towers covers the Jordan, Qatar, UAE, Saudi Arabia and Lebanon.
It also revealed that its Gamsha Bay project, worth $35-$40 billion project, is shaping up in Egypt, which is one of the largest master developments in the region. All these projects are currently in various stages of construction.
"We have grown at a tremendous pace, and have set the path for others to follow. We are proud that we are an integral part of the exponential growth that the country and the region has witnessed during the recent past, and will continue to play a major role in growing the industry," said the Chairman of Damac Holding, Hussain Sajwani.
The CEO of Damac Properties, Peter Riddoch assured that they will surely aim to further strengthen their position in these sectors shortly, and revealed that several projects of the company are coming up in the commercial market sector.
Damac Holding, the real estate arm of Damac Properties and a Dubai-based company, has revealed that its $18billion portfolio of towers covers the Jordan, Qatar, UAE, Saudi Arabia and Lebanon.
It also revealed that its Gamsha Bay project, worth $35-$40 billion project, is shaping up in Egypt, which is one of the largest master developments in the region. All these projects are currently in various stages of construction."We have grown at a tremendous pace, and have set the path for others to follow. We are proud that we are an integral part of the exponential growth that the country and the region has witnessed during the recent past, and will continue to play a major role in growing the industry," said the Chairman of Damac Holding, Hussain Sajwani.
The major projects of Damac include the buildings in developments such as the
Dubailand, Business Bay, Jumeirah Village, IMP and Tecome Zone.
The CEO of Damac Properties, Peter Riddoch assured that they will surely aim to further strengthen their position in these sectors shortly, and revealed that several projects of the company are coming up in the commercial market sector.
Labels: Damac Properties, Real Estate News
DWTC signs Dh.800m loan facility with NBD to fund DWTC developments
The Dubai World Trade Center (DWTC) and the National Bank of Dubai (NBD) has entered into a Dh.800 million short-term loan facility to fund the development plans of DWTC.
This deal will help in financing major real estate projects of DWTC, namely the Dubai Exhibition City and the Dubai Trade Center District, which are being constructed parallely.
The Dubai Trade Center District, located at the heart of Dubai, is a mixed-use development, intended to bring about a new business zone. The Phase one of the project, which is still under construction, will cover 2.3million square feet of grade one office space, along with executive serviced apartments, and various three, four and five star hotels, and a range of retails and dining options.
Another mega project of DWTC, the Dubai Exhibition City will be the first ever integrated event city, which will stand up to the exact requirements of exhibitors, visitors, organizers and delegates from across the globe.
Located adjacent to the Jebel Ali Airport, and spread across a seven square kilometer site, it is in line with the Dubai Strategy 2015 and ensures that Dubai is the world's leading conference and exhibition destination.
The NBD's Statement revealed that the NBD Offset Home Loans, a mortgage loan associated with high interest yielding current account, represents a milestone achievement in product innovation, and sets new standards in customer benefits apart from the leading features of the successful NBD Home Loans product.
The mortgage balance will be offset by the credit balance in the current account, which is one of the major features of the loans, saving the customer interest and facilitating faster loan repayment without being subjected to early repayment charges.
Labels: Dubai City, Dubai Real Estate, Mortgages, Office Space, Real Estate News, Real Estate Projects
Ajman Holding plans complete expansion by investing $1.5bn in realty ventures
Monday, September 17, 2007
Ajman Holding has revealed its plan to invest more than $1.5billion in real estate and associated ventures in Ajman, during the coming three years.
The company, launched in 2000 with Ajman as its base, is a diversified group of companies. The company says substantial chunk of the money will be kept aside for the Boulevard project, which will be developed by a property, the real estate branch of Ajman Holding Group.
The planned projects include 14 commercial and residential towers ranging from 14 to 30 storeys, a mall, a five-star business hotel, 2000 or more podium and basement parking spaces. Certain other amenities being planned include health clubs, swimming pools, a nursery and day-care for children.
According to officials, the whole project offers freehold ownership with a residence visa. The Phase one of the project is scheduled for completion by the second quarter of 2009. aaproperty confirmed that it has already entered into a contract with Adnan Safarini Consultancy to implement the design process of the project.
The Chairman of Ajman Holding, Shaikh Abdul Aziz Bin Humaid al Nuaimi, said "Ajman Holding decided to develop premium real estate projects, as this compliments the basic idea of moving into infrastructure related projects. "
He continued "Ajman is already witnessing an increasing demand for premium real estate developments. We are planning a full-fledged expansion to move beyond the boundaries of Ajman into the neighbouring emirates and into international markets, so that we can accomplish our mission and increase value for our shareholders."
The company, launched in 2000 with Ajman as its base, is a diversified group of companies. The company says substantial chunk of the money will be kept aside for the Boulevard project, which will be developed by a property, the real estate branch of Ajman Holding Group.
The planned projects include 14 commercial and residential towers ranging from 14 to 30 storeys, a mall, a five-star business hotel, 2000 or more podium and basement parking spaces. Certain other amenities being planned include health clubs, swimming pools, a nursery and day-care for children.
According to officials, the whole project offers freehold ownership with a residence visa. The Phase one of the project is scheduled for completion by the second quarter of 2009. aaproperty confirmed that it has already entered into a contract with Adnan Safarini Consultancy to implement the design process of the project.
The Chairman of Ajman Holding, Shaikh Abdul Aziz Bin Humaid al Nuaimi, said "Ajman Holding decided to develop premium real estate projects, as this compliments the basic idea of moving into infrastructure related projects. "
He continued "Ajman is already witnessing an increasing demand for premium real estate developments. We are planning a full-fledged expansion to move beyond the boundaries of Ajman into the neighbouring emirates and into international markets, so that we can accomplish our mission and increase value for our shareholders."
Labels: Ajman, Latest News, New Developments, Real Estate News
Dubai Sports City projects progress as scheduled
The Dubai Sports City, scheduled to be unveiled in late 2007, will be exactly what it implies: a city built to serve the purpose, and dedicated to everything related to sports. The development on completion will be the first of its kind that has been built for sports, and will be the base for a large number of events in sporting, while also including residential and commercial space into the mix.
With hi-tech stadiums, art academies and sports arenas under construction, the best names in the world of sport has given their support to a number of facilities, including Ernie EI's first golf course and the Manchester United Soccer School. The sub-developments in the Sports city will be scattered around the various facilities that are made to create a lifestyle that can be matched by no other.
Life in Sports City is all about having the best in luxury living, while also maintaining an active lifestyle. With projects such as the Oasis Tower, Gallery Villas, The Cube, and Victory Heights, buyers have an option to choose from villas and apartments, and they get to decide on whether to live in a serene atmosphere or to choose the one that faces a golf course.
Being a part of the immense Dubailand project, the residents get the best of both worlds: a luxurious lifestyle in beautiful surroundings, with all the necessary amenities and entertainments that one could ever ask for. Shops, restaurants, cafes, schools, and retail outlets are available round the clock within vicinity, and life in Dubai Sports City is all about balancing an active lifestyle, work, and calmness of your own spacious freehold property.
Located just 20 minutes outskirts of Dubai, the entire development is under the ownership of Dubai Properties, the Sports City is expected to be in a unique entertainment complex, with Sports City as an integral part of the new and exciting project.
With hi-tech stadiums, art academies and sports arenas under construction, the best names in the world of sport has given their support to a number of facilities, including Ernie EI's first golf course and the Manchester United Soccer School. The sub-developments in the Sports city will be scattered around the various facilities that are made to create a lifestyle that can be matched by no other.
Life in Sports City is all about having the best in luxury living, while also maintaining an active lifestyle. With projects such as the Oasis Tower, Gallery Villas, The Cube, and Victory Heights, buyers have an option to choose from villas and apartments, and they get to decide on whether to live in a serene atmosphere or to choose the one that faces a golf course.
Being a part of the immense Dubailand project, the residents get the best of both worlds: a luxurious lifestyle in beautiful surroundings, with all the necessary amenities and entertainments that one could ever ask for. Shops, restaurants, cafes, schools, and retail outlets are available round the clock within vicinity, and life in Dubai Sports City is all about balancing an active lifestyle, work, and calmness of your own spacious freehold property.
Located just 20 minutes outskirts of Dubai, the entire development is under the ownership of Dubai Properties, the Sports City is expected to be in a unique entertainment complex, with Sports City as an integral part of the new and exciting project.
Labels: Dubai Sports City, Dubailand, Real Estate News
ETA Star to support RCA in their noble endeavor
Sunday, September 16, 2007
ETA Star, a leading real estate development company in Dubai has confirmed its support to the Red Crescent Authority (RCA), a primary humanitarian organization of the UAE to raise money for building homes for destitute.
Any property that is purchased from ETA Star and any of its joint venture partners Star Giga and Hircon, during the holy month of Ramadan, one percent of the total sales value will be donated to the RCA who will utilize the money to build houses for the needy.
The Executive Director of ETA Star, Abid Junaid says "ETA Star is pleased to have been associated with RCA in this campaign. Our mission is to adopt the cause of providing homes to the homeless, particularly, those who live under inhuman conditions. The campaign has been particularly introduced during the holy month of Ramadan, as it represents the 'month of giving'. We are sure that out customer will support us in this endeavor and contribute for the purpose."
ETA Star Property Developers LLC is the property branch of the ETA-Ascon Group. The prime objective of the company is to exploit the increasing commercial opportunity in the freehold realty market in Dubai. Already, developments comprising more than 10 million square feet in area are under way and many more are being planned in the coming months. The current portfolio of ETA includes the prestigious residential and commercial properties like Liberty House, 23 Marina, Goldcrest Executive, The Belvedere, The Palladium and the Goldcrest Views-2.
Any property that is purchased from ETA Star and any of its joint venture partners Star Giga and Hircon, during the holy month of Ramadan, one percent of the total sales value will be donated to the RCA who will utilize the money to build houses for the needy.
The Executive Director of ETA Star, Abid Junaid says "ETA Star is pleased to have been associated with RCA in this campaign. Our mission is to adopt the cause of providing homes to the homeless, particularly, those who live under inhuman conditions. The campaign has been particularly introduced during the holy month of Ramadan, as it represents the 'month of giving'. We are sure that out customer will support us in this endeavor and contribute for the purpose."
ETA Star Property Developers LLC is the property branch of the ETA-Ascon Group. The prime objective of the company is to exploit the increasing commercial opportunity in the freehold realty market in Dubai. Already, developments comprising more than 10 million square feet in area are under way and many more are being planned in the coming months. The current portfolio of ETA includes the prestigious residential and commercial properties like Liberty House, 23 Marina, Goldcrest Executive, The Belvedere, The Palladium and the Goldcrest Views-2.
Labels: ETA-Star, Real Estate News, UAE
Dubai Internet City all set for major expansion
Thursday, September 13, 2007
The Dubai Internet City is looking forward to undergo major five fold expansion with the zone as the base for most companies, said a top executive of the company.
The Executive Director of Dubai Internet City, Jamal Abdul Salam, said "At present we house a little more than 1000 companies in the Internet City zone, covering an area of one million square feet. Plans are on for the expansion of the zone, and we would be able to increase the number of companies at least five times, in the next two to three years," he said.
The expansion will take place as a result of joint venture entered in May this year between Dubai Properties, and Tecom Investments, to create additional space to house companies.
Both Dubai Properties and Tecom investments, entered into a real estate joint-venture during the month of May this year, to undertake developments in the free zone clusters of Dubai Internet City, Dubai Media City, Dubai International Academic City and International Media Production Zone.
The Executive Director of Dubai Internet City, Jamal Abdul Salam, said "At present we house a little more than 1000 companies in the Internet City zone, covering an area of one million square feet. Plans are on for the expansion of the zone, and we would be able to increase the number of companies at least five times, in the next two to three years," he said.
The expansion will take place as a result of joint venture entered in May this year between Dubai Properties, and Tecom Investments, to create additional space to house companies.
Both Dubai Properties and Tecom investments, entered into a real estate joint-venture during the month of May this year, to undertake developments in the free zone clusters of Dubai Internet City, Dubai Media City, Dubai International Academic City and International Media Production Zone.
Labels: Dubai Real Estate, Real Estate News
Dubailand holds discussions to set up a pre-registration system
Sunday, September 09, 2007
Dubailand, a member of Tatweer, has announced that it is in advanced stages of processing a pre-registration system with the Land Department so as to completely abide by the new requirements and regulations.
The move has been initiated following an agreement between the Land Department and Tatweer which was signed in the month of June this year. Tatweer has formed a project committee comprising representatives from various departments to provide necessary assistance to the Land Department Authority to compile the necessary data to test run the pre-registration system.
The pre-registration system will adhere to the new law completely and will help Tatweer in tracking all registrations carried out by secondary developers in the areas that fall under its purview. This system will also ensure that any engineering specifications are strictly followed, as per the original master plan.
The CEO of Dubailand, Mohammad Al Habbai, said "The announcement of Law No.8 that pertains to real estate development trust accounts has had a positive knock-on effect for Tatweer. Through our partnership with the land department, we aim to establish a registration system for all Dubailand projects, including the ones developed by third parties."
He added that, the developers will get to interact with the registration system of the Land Department directly, right from the first day of their deal.
Through the introduction of the law pertaining to escrow accounts, the Land Department has put an end to any developer trying to launch a project and collect deposits, without sufficient guarantee that the funds will be utilized only for the intended purpose. The law also ensures that the construction work begins at the stipulated time.
The move has been initiated following an agreement between the Land Department and Tatweer which was signed in the month of June this year. Tatweer has formed a project committee comprising representatives from various departments to provide necessary assistance to the Land Department Authority to compile the necessary data to test run the pre-registration system.The pre-registration system will adhere to the new law completely and will help Tatweer in tracking all registrations carried out by secondary developers in the areas that fall under its purview. This system will also ensure that any engineering specifications are strictly followed, as per the original master plan.
The CEO of Dubailand, Mohammad Al Habbai, said "The announcement of Law No.8 that pertains to real estate development trust accounts has had a positive knock-on effect for Tatweer. Through our partnership with the land department, we aim to establish a registration system for all Dubailand projects, including the ones developed by third parties."
He added that, the developers will get to interact with the registration system of the Land Department directly, right from the first day of their deal.
Through the introduction of the law pertaining to escrow accounts, the Land Department has put an end to any developer trying to launch a project and collect deposits, without sufficient guarantee that the funds will be utilized only for the intended purpose. The law also ensures that the construction work begins at the stipulated time.
Labels: Dubailand, Property Law, Real Estate News
Escrow Law leaves developers at risk: Trowers & Hamlins
Saturday, September 08, 2007
There are probabilities that the recently announced Trust Account Law in Dubai could pose problems for its developers, as they may be unable to use investors money for constructing projects, say experts.
The international law firm, Trowers & Hamlins are of the opinion that the recent Escrow Law could pose troubles to developers who usually release payments in stages from purchasers to contractors.
The delay in delivery of projects has been a major issue in Dubai. Now, with the new law, such cases could be more common, and the developers could be compelled to turn to Banks for seeking finance. The Dubai Government has launched the RERA (Real Estate Regulatory Authority) to fix such problems.
As per the new law, the developers should keep the deposits of the buyers in escrow accounts rather than allowing them to release funds to pay money early to contractors, with the progress of the project. This in turn, could also lead to contractors refusing to continue their works until the promised payment has been made.
During the last financial year, 2005-06, the total values of residential and commercial projects have touched $90 billion.
According to Trowers & Hamlins, the construction boom is causing problems that are more serious than the advertised shortages of sand and steel. Currently there is a shortage experienced in capacity among engineering firms, subcontractors and skilled contractors, and the contractors can even negotiate better deals at the risk of the developer.
The international law firm, Trowers & Hamlins are of the opinion that the recent Escrow Law could pose troubles to developers who usually release payments in stages from purchasers to contractors.The delay in delivery of projects has been a major issue in Dubai. Now, with the new law, such cases could be more common, and the developers could be compelled to turn to Banks for seeking finance. The Dubai Government has launched the RERA (Real Estate Regulatory Authority) to fix such problems.
As per the new law, the developers should keep the deposits of the buyers in escrow accounts rather than allowing them to release funds to pay money early to contractors, with the progress of the project. This in turn, could also lead to contractors refusing to continue their works until the promised payment has been made.
During the last financial year, 2005-06, the total values of residential and commercial projects have touched $90 billion.
According to Trowers & Hamlins, the construction boom is causing problems that are more serious than the advertised shortages of sand and steel. Currently there is a shortage experienced in capacity among engineering firms, subcontractors and skilled contractors, and the contractors can even negotiate better deals at the risk of the developer.
Labels: Property Law, Real Estate News
UAE developers setting a new trend by eyeing European markets
Thursday, September 06, 2007
More numbers of property developers in UAE are eyeing Europe for further expansion and to establish their presence, as the land prices there are comparatively reasonable.
Emaar was the first company to expand outside the UAE, followed by Nakheel and Damac.
Currently, Al Manal Development for instance, is working on its second project in Geneva, the County of Cessy. Similarly another Dubai-based developer, who specializes in high-rise buildings is said to have drawn plans to enter the Romanian market.
It is said that even Sheffield Real Estate, which has already completed Dh.500 million worth of projects and have taken up another Dh.3billion worth projects within UAE, has decided to try its hand in the eastern European market. The Managing Director of Sheffield, Abuali Malik Shroff, has said that his company is currently on the look out for land in those countries to develop condominiums and hopes to begin construction next year. He added that the land prices in these countries are reasonable without much legal issues, and one gets to purchase directly from the private parties or the government, and there will be a strong demand for good projects during the coming years.
However, Shroff quoted that he only plans to invest about $250million to $300million over a five year period in the eastern European market, and that his investments are not likely to be long-term.
Although Europe is the new trend for UAE developers, the property companies have been trying to establish their presence for quite some time in markets such as India, Egypt, Pakistan, Morocco and Saudi.
This newfound appeal towards European markets is mainly due to the fact that most of these countries will join the European Union, as the European Union is in the process of expanding. Bulgaria and Romania are already included into the Union.
Emaar was the first company to expand outside the UAE, followed by Nakheel and Damac.
Currently, Al Manal Development for instance, is working on its second project in Geneva, the County of Cessy. Similarly another Dubai-based developer, who specializes in high-rise buildings is said to have drawn plans to enter the Romanian market.
It is said that even Sheffield Real Estate, which has already completed Dh.500 million worth of projects and have taken up another Dh.3billion worth projects within UAE, has decided to try its hand in the eastern European market. The Managing Director of Sheffield, Abuali Malik Shroff, has said that his company is currently on the look out for land in those countries to develop condominiums and hopes to begin construction next year. He added that the land prices in these countries are reasonable without much legal issues, and one gets to purchase directly from the private parties or the government, and there will be a strong demand for good projects during the coming years.
However, Shroff quoted that he only plans to invest about $250million to $300million over a five year period in the eastern European market, and that his investments are not likely to be long-term.
Although Europe is the new trend for UAE developers, the property companies have been trying to establish their presence for quite some time in markets such as India, Egypt, Pakistan, Morocco and Saudi.
This newfound appeal towards European markets is mainly due to the fact that most of these countries will join the European Union, as the European Union is in the process of expanding. Bulgaria and Romania are already included into the Union.
Labels: International, Real Estate Company, Real Estate News, UAE
Amlak Finance and Tamweel signs deal to function as escrow agents
Friday, August 31, 2007
Amlak and Tamweel, the two mortgage lenders in Dubai, have entered into deals with the Land Department to become escrow account agents.
Amlak Finance has been assigned to launch trust account services from the Dubai Land Department. Apart from this, Amlak will also enhance the financial flexibility of the end-user and provide unit sales services, sales monitoring, construction finance, legal documentation and customer service to major developers.
Tamweel has been assigned the task of an official escrow account agent by the Land Department, and this is for the first time that a mortgage provider has got this designation.
Tamweel said that it plans to convert the current projects of seventy five real estate developers into an authorized escrow structure.
The Director General of the Land Department, Sultan Butti Bin Mejren said "The Dubai Land Department plans to promote regulations that will contribute to the development of the property market in the emirate. The agreement between Amlak finance and the department ensures the users with ultimate protection."
The CEO of RERA (Real Estate Regulatory Agency), Marwan Bin Ghalita has commented that with the approval of a trust manager for the leading institutes in the market, one can rest assured that the Dubai property market will grow to provide deep rooted confidence and security to all its investors.
Amlak Finance has been assigned to launch trust account services from the Dubai Land Department. Apart from this, Amlak will also enhance the financial flexibility of the end-user and provide unit sales services, sales monitoring, construction finance, legal documentation and customer service to major developers.Tamweel has been assigned the task of an official escrow account agent by the Land Department, and this is for the first time that a mortgage provider has got this designation.
Tamweel said that it plans to convert the current projects of seventy five real estate developers into an authorized escrow structure.
The Director General of the Land Department, Sultan Butti Bin Mejren said "The Dubai Land Department plans to promote regulations that will contribute to the development of the property market in the emirate. The agreement between Amlak finance and the department ensures the users with ultimate protection."The CEO of RERA (Real Estate Regulatory Agency), Marwan Bin Ghalita has commented that with the approval of a trust manager for the leading institutes in the market, one can rest assured that the Dubai property market will grow to provide deep rooted confidence and security to all its investors.
Labels: Dubai Real Estate, Mortgages, Real Estate News
Emaar and Dubai Holdings join hands for prime land developments in Dubai
Thursday, August 30, 2007
The leading Dubai-based real estate developer, Emaar Properties, and the largest Dubai-based business conglomerate in the Middle East, Dubai Holding, have together announced a joint-venture arrangement for development of land in major locations in Dubai.
The Executive Chairman of Dubai Holding, Mohammad Al Gergawi, said that both Dubai Holding and Emaar are of the belief that both companies would benefit from working together on real estate projects in Dubai. Both firms are currently holding advanced discussions over the matter, for development of world-class projects in major locations in Dubai.
After its launch in 2004, Dubai Holding operates in various sectors ranging from technology, real estate, finance, health, energy, communication, tourism, hospitality, biotechnology and industry. Emaar on the other hand, powered by its vision 2010, is all set to become the most renowned names in the property market across the world, and is in the process of creating master-planned communities in international markets. It is also into developing new competencies in leisure malls, hospitality, healthcare, finance, and education which has evolved from its integrated approach to real estate development and customer service.
Both companies have strong fundamentals and their potential growth displays a great promise for investors.
The Executive Chairman of Dubai Holding, Mohammad Al Gergawi, said that both Dubai Holding and Emaar are of the belief that both companies would benefit from working together on real estate projects in Dubai. Both firms are currently holding advanced discussions over the matter, for development of world-class projects in major locations in Dubai.
After its launch in 2004, Dubai Holding operates in various sectors ranging from technology, real estate, finance, health, energy, communication, tourism, hospitality, biotechnology and industry. Emaar on the other hand, powered by its vision 2010, is all set to become the most renowned names in the property market across the world, and is in the process of creating master-planned communities in international markets. It is also into developing new competencies in leisure malls, hospitality, healthcare, finance, and education which has evolved from its integrated approach to real estate development and customer service.
Both companies have strong fundamentals and their potential growth displays a great promise for investors.
Labels: Dubai Holdings, Dubai Real Estate, Emmar, Real Estate News
Nakheel to re-develop Jebel Ali Village
Thursday, August 23, 2007
Nakheel has announced plans to re-develop Jebel Ali Village, and the residents hope to purchase their own homes in the new project. Work is expected to commence towards the end of the year, and will be completed by 2013. Earthworks on the surrounding vacant land have already begun.
The re-developed village will offer a range of medium-density housing which will be supported by commercial, community and retail facilities. However, the size and pricing of the residential units are yet to be revealed.
Nakheel, in their statement, mentioned that the re-development has been planned to take care of quality accommodation requirement, with access to the existing and proposed amenities in the neighbouring area such as the Ibn Battuta Mal and the Dubai Metro Station, being projected.
The current 299 villas in the village will be demolished and the existing tenants were already given a years notice until August 2008, to vacate the premises. These tenants apart from being eligible to purchase homes in the new development, will also be eligible for priority reservation in certain other projects of Nakheel, such as the Discovery Gardens and the International City.
The Jebel Ali Village was constructed in 1977 for providing accommodation to expatriates who are working on the construction of Jebel Ali Port. Certain parts of the existing village such as the Jebel Ali Recreational Club and the Mosque will be retained, although, the Central Park will be expanded to twelve hectares.
The re-development will also comprise a primary school and a range of medium-density housing.
The re-developed village will offer a range of medium-density housing which will be supported by commercial, community and retail facilities. However, the size and pricing of the residential units are yet to be revealed.
Nakheel, in their statement, mentioned that the re-development has been planned to take care of quality accommodation requirement, with access to the existing and proposed amenities in the neighbouring area such as the Ibn Battuta Mal and the Dubai Metro Station, being projected.
The current 299 villas in the village will be demolished and the existing tenants were already given a years notice until August 2008, to vacate the premises. These tenants apart from being eligible to purchase homes in the new development, will also be eligible for priority reservation in certain other projects of Nakheel, such as the Discovery Gardens and the International City.
The Jebel Ali Village was constructed in 1977 for providing accommodation to expatriates who are working on the construction of Jebel Ali Port. Certain parts of the existing village such as the Jebel Ali Recreational Club and the Mosque will be retained, although, the Central Park will be expanded to twelve hectares.
The re-development will also comprise a primary school and a range of medium-density housing.
Labels: Dubai Real Estate, Jebel-Ali, Nakheel, New Developments, Real Estate News
Residents of Westside Marina- the first to abide by the new Strata Law
Wednesday, August 22, 2007
Dubai property owners are gearing up for the new Strata Law, likely to be implemented shortly.
As a preparation for the forthcoming introduction of the law, the residents of Westside Marina Building, along with the support of their developer, Tulip Developments, have signed a joint submission from AUAE Strata Global and Better Homes to manage the property and homeowners association of the building.
As per law, the developers will handover the ownership and control of common areas of the building, rather than handing over just the individual units.
At the moment, property owners have legal ownership only on the actual unit purchased by them, and have no claim on common areas such as the gym or the pool. The new law will divide the common areas by the number of units and will handover an equal share of every owner.
Through Strata, ownership, management and maintenance will be in the hands of the homeowners, and it will be their responsibility thereafter to ensure that these areas are managed and maintained in an effective manner. Every building will elect committee members group, who inspect such matters.
As a preparation for the forthcoming introduction of the law, the residents of Westside Marina Building, along with the support of their developer, Tulip Developments, have signed a joint submission from AUAE Strata Global and Better Homes to manage the property and homeowners association of the building.
As per law, the developers will handover the ownership and control of common areas of the building, rather than handing over just the individual units.
At the moment, property owners have legal ownership only on the actual unit purchased by them, and have no claim on common areas such as the gym or the pool. The new law will divide the common areas by the number of units and will handover an equal share of every owner.
Through Strata, ownership, management and maintenance will be in the hands of the homeowners, and it will be their responsibility thereafter to ensure that these areas are managed and maintained in an effective manner. Every building will elect committee members group, who inspect such matters.
Labels: Property Law, Real Estate News, UAE
ADNEC site construction work on schedule
Saturday, August 18, 2007
Construction work for Adnec (Abu Dhabi National Exhibition Center) Site is on schedule and will be completed by 2008, said the officials.
The Adnec Sales and Marketing Director, Paul Vincent, stated that the extension of exhibition space will be delivered by October or September 2008, and the tower will be ready by the following year.
The entire ADNEC development, inclusive of the 2.3kilometer Marina, four or five hotels, and most other facilities will be completely operational by 2011.
To commemorate the current status of construction, the officials are said to have buried a time capsule into the foundations of the building. The capsule was inscribed as "A Moment in Time", which contains artifacts that throw a light into the daily life in Abu Dhabi.
Officials, Architects and representative from Adnec and Arabtec (the construction company) were present during the occasion.
Labels: Abu Dhabi, New Developments, Real Estate News
Foreign developers should submit a series of documents for setting up Real Estate Trust Accounts
A major loop hole that had been pointed out in the new law on Escrow accounts, has now been clarified by the Dubai Land Department.
The department officials have announced that "a special arrangement" has been made to permit foreign developers registered as offshore companies, to develop trust (Escrow) accounts that were introduced last month to safeguard the payments of the investors.
According to the conditions pertaining to Law No.8, mentioned that for setting up Real Estate Development Trust Accounts, the developers who wish to set accounts, are required to submit certain documents along with a trade license. Thereafter, various legal experts pointed out that the licenses for land transactions in Dubai, have been so far granted only to GCC or UAE nationals by Dubai Economic Department (DED), while the freezone companies are issued documents by the freezone authority. This actually indicates that the foreign companies with a title deed to own a plot of land will have to go through 'local' companies, to obtain the appropriate license for building developments on the plots.
The Dubai Land Department has now announced the submission of the following documents for setting up escrow accounts by offshore companies in Dubai.
An official certificate issued by a competent authority in the country, in which the company has been registered. The certificate will imply that the company is registered and incorporated in that country, the legal status of the company and the capital amount.
The department officials have announced that "a special arrangement" has been made to permit foreign developers registered as offshore companies, to develop trust (Escrow) accounts that were introduced last month to safeguard the payments of the investors.
According to the conditions pertaining to Law No.8, mentioned that for setting up Real Estate Development Trust Accounts, the developers who wish to set accounts, are required to submit certain documents along with a trade license. Thereafter, various legal experts pointed out that the licenses for land transactions in Dubai, have been so far granted only to GCC or UAE nationals by Dubai Economic Department (DED), while the freezone companies are issued documents by the freezone authority. This actually indicates that the foreign companies with a title deed to own a plot of land will have to go through 'local' companies, to obtain the appropriate license for building developments on the plots.
The Dubai Land Department has now announced the submission of the following documents for setting up escrow accounts by offshore companies in Dubai.
An official certificate issued by a competent authority in the country, in which the company has been registered. The certificate will imply that the company is registered and incorporated in that country, the legal status of the company and the capital amount.
- Original certificate of property ownership contract.
- The competent administrative authority in the company should issue a copy of decision concerning the sale/purchase of the property, along with authorization issued to the nominee/agent in this regard.
- A Power of Attorney, authenticated, authorizing the representative of the company to sell or purchase the property and to register the same at the department in the name of the company.
- The list of partners/incorporators, names of managers and addresses to be submitted.
- A certification of the name and address of the approved agent in the country.
Labels: Property Law, Real Estate News, UAE
Fortune Tower nearing completion; will be handed over by October
The construction work on the Fortune Tower development located at Shaikh Zayed Road in Dubai, is finally nearing completion, after a deadly blaze in the tower, which involved the death of two, and injury of dozens of workers.
The Fortune Group, the Dubai-based developer recently announced that the construction work on the Dh.170million project at the Jumeirah Lake Towers is 95 percent complete, and is ready to be handed over towards end of October.
On January 18th, fire broke out on the upper storeys of the 34storey building, which left two workers dead, and forty others with injuries. An investigation on the cause of the blaze revealed that, a burning welding material lighted-up the wooden parts of an area of scaffolding.
A representative of the Fortune Group said that the building suffered no structural damage, and the work resumed within a couple of months. Completion and testing of the tower with 35 storeys will be conducted by next month end, after which, the customers will be allowed to inspect he premises, and the handover will be done in October.
The Fortune Group mentioned that the project was sold within four months of its launch. The Chief Executive of the Fortune Group, Syed Mohammad Ali said that the project will meet the increasing demand for commercial space that is maintained by the economic growth in the region.
The construction works is being managed by IJM Corporation, based in Malaysia. On completion, the tower will have a total office space of 350,000 with a total of 254 office units.
The Fortune Pearl, Fortune Bravo, Fortune Bay, Fortune Avenue, Fortune Executive Tower, Crustal Tower, Casa Marbella, Fortune Pavilion, and Fortune Serene are the other projects of the Fortune Group
The Fortune Group, the Dubai-based developer recently announced that the construction work on the Dh.170million project at the Jumeirah Lake Towers is 95 percent complete, and is ready to be handed over towards end of October.
On January 18th, fire broke out on the upper storeys of the 34storey building, which left two workers dead, and forty others with injuries. An investigation on the cause of the blaze revealed that, a burning welding material lighted-up the wooden parts of an area of scaffolding.
A representative of the Fortune Group said that the building suffered no structural damage, and the work resumed within a couple of months. Completion and testing of the tower with 35 storeys will be conducted by next month end, after which, the customers will be allowed to inspect he premises, and the handover will be done in October.
The Fortune Group mentioned that the project was sold within four months of its launch. The Chief Executive of the Fortune Group, Syed Mohammad Ali said that the project will meet the increasing demand for commercial space that is maintained by the economic growth in the region.
The construction works is being managed by IJM Corporation, based in Malaysia. On completion, the tower will have a total office space of 350,000 with a total of 254 office units.
The Fortune Pearl, Fortune Bravo, Fortune Bay, Fortune Avenue, Fortune Executive Tower, Crustal Tower, Casa Marbella, Fortune Pavilion, and Fortune Serene are the other projects of the Fortune Group
Labels: Construction Projects, Fortune, Real Estate Company, Real Estate News
Abu Dhabi developments do not sell like hot cakes, as in Dubai
Wednesday, August 15, 2007
A recent study conducted by Deutsche Bank revealed that although Abu Dhabi property market seems to be growing at a rapid pace, the developments do not sell out immediately, as in Dubai. The study pointed out that Abu Dhabi has not been successful in implementing the manner in which Dubai did, by following relaxation of foreign ownership laws.
A Research Analyst at the Bank, Mohammad Khan, said that in comparison to the pace of property sales in Dubai, the developers in Abu Dhabi get to experience "A more cautious buyer pool."
The research was based on the reports of a study of residential units being sold by Aldar Properties, the largest developer in Abu Dhabi. Mohammad found that among the 5000 residential units on sale since 2005, only 60 percent of them have been sold.
The Bank is of the opinion that the buyers in Abu Dhabi are taking cautious steps, out of fear of having to face legal obstacles, and financing of purchases.
Also, the Abu Dhabi property market has not witnessed an increased demand from expatriates, and is instead depending on the national buyers. However, the nationals in Abu Dhabi are less likely to buy from their own city, as they are already entitled to government-sponsored housing, and hence prefer investing in second homes in Dubai or outside UAE.
The expatriates may opt to buy from Aldar properties, but only two our of four major projects - the Yas Island and the Al Raha Beach are made available to non-Emiratis.
The Bank also pointed out that though the expatriates have plenty of job opportunities due to the oil industry, there are not much other booming industries.
Dubai, on the other, has drawn to its side high-profile executives to free zone developments such as the Media City, Jebel Ali and the Internet City.
Finally, although the property ownership laws in Abu Dhabi are currently on par with that of Dubai, the Bank suggests that the expatriates in Abu Dhabi are still uncertain about the legal system. In addition to this, the immature mortgage market, is also bringing about another drag on the Abu Dhabi property sector.
A Research Analyst at the Bank, Mohammad Khan, said that in comparison to the pace of property sales in Dubai, the developers in Abu Dhabi get to experience "A more cautious buyer pool."
The research was based on the reports of a study of residential units being sold by Aldar Properties, the largest developer in Abu Dhabi. Mohammad found that among the 5000 residential units on sale since 2005, only 60 percent of them have been sold.
The Bank is of the opinion that the buyers in Abu Dhabi are taking cautious steps, out of fear of having to face legal obstacles, and financing of purchases.
Also, the Abu Dhabi property market has not witnessed an increased demand from expatriates, and is instead depending on the national buyers. However, the nationals in Abu Dhabi are less likely to buy from their own city, as they are already entitled to government-sponsored housing, and hence prefer investing in second homes in Dubai or outside UAE.
The expatriates may opt to buy from Aldar properties, but only two our of four major projects - the Yas Island and the Al Raha Beach are made available to non-Emiratis.
The Bank also pointed out that though the expatriates have plenty of job opportunities due to the oil industry, there are not much other booming industries.
Dubai, on the other, has drawn to its side high-profile executives to free zone developments such as the Media City, Jebel Ali and the Internet City.
Finally, although the property ownership laws in Abu Dhabi are currently on par with that of Dubai, the Bank suggests that the expatriates in Abu Dhabi are still uncertain about the legal system. In addition to this, the immature mortgage market, is also bringing about another drag on the Abu Dhabi property sector.
Labels: Abu Dhabi, Real Estate News, Sales
Ground work in The Palm Jebel Ali, nearing completion
Nakheel has announced completion of more than half of the ground works at The Palm Jebel Ali.
The company is currently under the process of using a technique called "vibrocompaction" wherein the specially designed vibrating probes help increase the bearing capacity of the soil, and makes it ready for construction. This work helps in ensuring that no land subsidence will take place in future.
Currently eighteen vibroprobes are being used for the work, with each probe holding a capacity of 1800 revolutions per minute, and weighs approximately 2600 kgms, resulting in a force of 30 to 50 tonnes, according to statement from Nakheel.
The vibrocompaction increases the soil bearing capacity of the reclaimed land by more than eighty percent, and creates a land mass that equals the mainland Dubai, in its strength.
The Palm Jebel Ali, Managing Director, Marwan Al Qamsi, has assured that the process will ensure the strength of the island, and added that through this process of vibrocompaction, the desired result which would require twenty years for accomplishment by natural process will be achieved within months.
The process also ensures that the reclaimed land mass in The Palm Jebel Ali will be strong enough for construction of high-rises, and also ensures that the island will not move or sink.
Now, with most of the reclamation work nearing completion, Nakheel has already begun the infrastructure work, which is eventually capable of supporting a population of more than 250,000 people.
The Palm Jebel Ali will host a population of 1.7million by 2020.
Currently eighteen vibroprobes are being used for the work, with each probe holding a capacity of 1800 revolutions per minute, and weighs approximately 2600 kgms, resulting in a force of 30 to 50 tonnes, according to statement from Nakheel.
The vibrocompaction increases the soil bearing capacity of the reclaimed land by more than eighty percent, and creates a land mass that equals the mainland Dubai, in its strength.
The Palm Jebel Ali, Managing Director, Marwan Al Qamsi, has assured that the process will ensure the strength of the island, and added that through this process of vibrocompaction, the desired result which would require twenty years for accomplishment by natural process will be achieved within months.
The process also ensures that the reclaimed land mass in The Palm Jebel Ali will be strong enough for construction of high-rises, and also ensures that the island will not move or sink.
Now, with most of the reclamation work nearing completion, Nakheel has already begun the infrastructure work, which is eventually capable of supporting a population of more than 250,000 people.
The Palm Jebel Ali will host a population of 1.7million by 2020.
Labels: Construction Projects, Nakheel, Palm Islands, Real Estate News
Realty owners in Dubai look for better quality services
Monday, August 13, 2007
A leading industrial expert is reported to have commented that the Middle East is witnessing a new property owner profile, which demands higher standard and quality in building services, security, energy usage and environmental impact. This is due to the fact that emirates throughout the region are open to various levels of foreign ownership, be it leasehold or freehold, and this is making way for a new trend.
The financial sector is one of the leaders in this new trend. More number of financial institutions, both regional and international are employing staffs who are aware about an effective facility management. Farnek, for instance, has more than 500 buildings that cover a floor space of over one million square meters. It provides security protection for over 100 properties and keeps 100 installations operational, and claims to be able to keep up a building's energy cost by 25%.
Though the estimates may not be the same, the Frost & Sullivan Middle East Survey suggests that facilities management market in the region will grow from US$200 million during 2006 to US$576 million by 2012, with UAE, Qatar, Oman, Bahrain and Kuwait, as major leaders in this path.
Though facilities management in the Middle East is still in its initial stages, it is progressing relatively fast, and will soon outstrip the booming construction industry in the region. With the induction of more buildings for leasehold and freehold, more managers and property owners are actually looking at the life-cycle cost of their buildings.
The financial sector is one of the leaders in this new trend. More number of financial institutions, both regional and international are employing staffs who are aware about an effective facility management. Farnek, for instance, has more than 500 buildings that cover a floor space of over one million square meters. It provides security protection for over 100 properties and keeps 100 installations operational, and claims to be able to keep up a building's energy cost by 25%.
Though the estimates may not be the same, the Frost & Sullivan Middle East Survey suggests that facilities management market in the region will grow from US$200 million during 2006 to US$576 million by 2012, with UAE, Qatar, Oman, Bahrain and Kuwait, as major leaders in this path.
Though facilities management in the Middle East is still in its initial stages, it is progressing relatively fast, and will soon outstrip the booming construction industry in the region. With the induction of more buildings for leasehold and freehold, more managers and property owners are actually looking at the life-cycle cost of their buildings.
Labels: Market Trends, Property-Management, Real Estate News
Real Estate offices warned against promoting mortgaged buildings
Thursday, August 09, 2007
The Real Estate offices in Abu Dhabi are not allowed to rent out or encourage mortgaged buildings, unless they receive permission from the Commercial Buildings Department, said a senior rent official.
Mohammed Abdullah Al Basous, the Deputy Director of Rents Administration, pointing out to the rent law, is said to have mentioned that the real estate offices were not granted authorization to handle renting or advertising issues for mortgaged buildings even if they have the landlord's approval.
He warned that in case these offices get themselves involved in renting out or marketing these kinds of buildings, they will have to face legal actions as per the rent laws.
He emphasized that the department has the right to lease mortgaged apartments to big establishments and companies, who can afford to pay the rents without delay. Or else, all lease processing will have to be done through the raffle draw system, he added.
Mohammed Abdullah Al Basous, the Deputy Director of Rents Administration, pointing out to the rent law, is said to have mentioned that the real estate offices were not granted authorization to handle renting or advertising issues for mortgaged buildings even if they have the landlord's approval.
He warned that in case these offices get themselves involved in renting out or marketing these kinds of buildings, they will have to face legal actions as per the rent laws.
He emphasized that the department has the right to lease mortgaged apartments to big establishments and companies, who can afford to pay the rents without delay. Or else, all lease processing will have to be done through the raffle draw system, he added.
Labels: Abu Dhabi, Property Law, Real Estate News
Dubai Investments gears up for major expansions
Monday, August 06, 2007
The real estate branch of Dubai Investment Group of Companies, DI Real Estate Company (DIRC) will have projects worth Dh.14billion by end of 2007 as against Dh.4billion worth of projects currently in hand.
The Managing Director and CEO of the group, Khalid Kalban, said the project would be part of a development contract in one of the UAE emirates.
He mentioned that DIRC and subsidiaries are the fastest growing firms among the forty four companies of Dubai Investment group, due to the flourishing construction sector.
The increasing property value has led to all the property companies of Dubai Investment, including manufacturers of building materials such as glass and aluminium contributing to business growth of the group to a great extent. The group recently announced that the income during the first half of the year increased by seventy seven percent to Dh.1.77b from the Dh.1billion recorded during the same period a year ago. The net profit increased by forty eight percent to Dh.803million from Dh.544million for the same period.
Dubai Investment Industry (DII) another branch of the group that invests in start-ups, plan to enter joint-venture projects with a steel fabrication company in Abu Dhabi and another tiles and boards manufacturing company in Fujairah. The company also plans expansion in three of its subsidiary firms.
According to Kalban, one of the group's unique, multifaceted complexes of residential, business, industrial and recreational developments, the Dubai Investments Park (DIP) has about 1000 tenants. He pointed out that the expansion of the development at DIP can be understood by looking at Green Community alone, which has about 2000 residents, and in a period of three years, is expected to have about 20,000 residents.
He announced that Dubai Investment Group of Companies are in the process of planning major investment projects in Banking sector in Indonesia, Brunei and Philippines after another three years.
The Managing Director and CEO of the group, Khalid Kalban, said the project would be part of a development contract in one of the UAE emirates.
He mentioned that DIRC and subsidiaries are the fastest growing firms among the forty four companies of Dubai Investment group, due to the flourishing construction sector.
The increasing property value has led to all the property companies of Dubai Investment, including manufacturers of building materials such as glass and aluminium contributing to business growth of the group to a great extent. The group recently announced that the income during the first half of the year increased by seventy seven percent to Dh.1.77b from the Dh.1billion recorded during the same period a year ago. The net profit increased by forty eight percent to Dh.803million from Dh.544million for the same period.
Dubai Investment Industry (DII) another branch of the group that invests in start-ups, plan to enter joint-venture projects with a steel fabrication company in Abu Dhabi and another tiles and boards manufacturing company in Fujairah. The company also plans expansion in three of its subsidiary firms.
According to Kalban, one of the group's unique, multifaceted complexes of residential, business, industrial and recreational developments, the Dubai Investments Park (DIP) has about 1000 tenants. He pointed out that the expansion of the development at DIP can be understood by looking at Green Community alone, which has about 2000 residents, and in a period of three years, is expected to have about 20,000 residents.
He announced that Dubai Investment Group of Companies are in the process of planning major investment projects in Banking sector in Indonesia, Brunei and Philippines after another three years.
Labels: Real Estate Company, Real Estate News
Plus Properties makes its entry into UAE Realty market
Sunday, August 05, 2007
Plus Properties, a Dubai-based development company, has made its entry into the Middle East realty market, with three residential projects in the UAE, worth Dh.850million.
Plus Properties expects to set up offices in Kuwait, Saudi Arabia, Lebanon and UAE and will cater to realty services such as leasing, warehousing, and other services after its development unit gets operational.
The first projects of the company include development of two freehold towers in the master development of Dubai Waterfront near Palm Jebel Ali, and construction of a thirty storey tower on Reem Island in Abu Dhabi.
As revealed by the officials, the three buildings together comprise 750 luxury units, but more details of the project will not be revealed until its launch in September. The buildings will be designed by Hong Kong-based Company, James Law Cybertecture International, which is also the company that designed the iPod shaped tower in Business Bay. The designs are awaiting final approval of the master developer.
The General Manager of Plus Properties, Muath Jalil, mentioned that the company is aware of the competition in the UAE real estate market, and that the major challenge lies in winning the hearts of the people by proving that they are not just another developer in the market, which will take some time.
George Chehwane, a Lebanese businessman is the Founder and CEO of the Dubai-based company.
Plus Properties expects to set up offices in Kuwait, Saudi Arabia, Lebanon and UAE and will cater to realty services such as leasing, warehousing, and other services after its development unit gets operational.
The first projects of the company include development of two freehold towers in the master development of Dubai Waterfront near Palm Jebel Ali, and construction of a thirty storey tower on Reem Island in Abu Dhabi.
As revealed by the officials, the three buildings together comprise 750 luxury units, but more details of the project will not be revealed until its launch in September. The buildings will be designed by Hong Kong-based Company, James Law Cybertecture International, which is also the company that designed the iPod shaped tower in Business Bay. The designs are awaiting final approval of the master developer.
The General Manager of Plus Properties, Muath Jalil, mentioned that the company is aware of the competition in the UAE real estate market, and that the major challenge lies in winning the hearts of the people by proving that they are not just another developer in the market, which will take some time.
George Chehwane, a Lebanese businessman is the Founder and CEO of the Dubai-based company.
Labels: Dubai Real Estate, Real Estate Company, Real Estate News
Construction of 72 Business Bay Towers under progress
Saturday, August 04, 2007
Construction work on phase one of 72 towers in Business Bay is in progress. This comprises one third of the total number of buildings in the master development that covers 64 million square meters.
More than eighty percent of Business Bay comprises developments by third-party investors, including international and regional property developers. The plots in the phase one of the multi-phase project are reported to have been completely sold out.
The Master developer of Business Bay, Dubai Properties, is building eighteen towers on the whole, including, Porsche Design Towers, Vision towers, Executive Towers, Signature Towers, Aspect Towers and more in pipeline.
The Executive Towers comprises eleven buildings out of which one is for commercial purpose and the rest nine for residential purposes. It also includes a Hotel with 303 rooms.
The overall project, on completion, will comprise residential units, office towers and retail and hotel areas. However, this is a commercial project, and aims to consolidate Dubai’s position as a global business hub and aims to meet the increasing demand for office space.
The other mixed-use master developments of Dubai Properties include The Villa, The Tijara Town, Culture Villas and Jumeirah Beach Residence.
More than eighty percent of Business Bay comprises developments by third-party investors, including international and regional property developers. The plots in the phase one of the multi-phase project are reported to have been completely sold out.
The Master developer of Business Bay, Dubai Properties, is building eighteen towers on the whole, including, Porsche Design Towers, Vision towers, Executive Towers, Signature Towers, Aspect Towers and more in pipeline.
The Executive Towers comprises eleven buildings out of which one is for commercial purpose and the rest nine for residential purposes. It also includes a Hotel with 303 rooms.
The overall project, on completion, will comprise residential units, office towers and retail and hotel areas. However, this is a commercial project, and aims to consolidate Dubai’s position as a global business hub and aims to meet the increasing demand for office space.
The other mixed-use master developments of Dubai Properties include The Villa, The Tijara Town, Culture Villas and Jumeirah Beach Residence.
Labels: Business Bay, Commercial Property, Construction Projects, Real Estate News
Real Estate Regulatory Agency for better supervision of registrations and property laws
Thursday, August 02, 2007
The Dubai Land Department, that supervises the booming property sector of the emirate, is in the process of undergoing a major reformation.
The department plans to create two agencies under its wing, so as to keep pace with the strong flow of freehold property registrations, and various add-ons to the regulatory framework of the emirate.
This has been planned following an announcement by His Highness Shaikh Mohammad bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE and Ruler of Dubai, which led to the establishment of the Real Estate Regulatory Agency (RERA), the first body to be affiliated to the Land Department.
The agency has been assigned the task to supervise the key regulations pertaining to the property sector, including the recent regulations on trust accounts, real estate brokers and the responsibilities of Home Owners Associations (HOA).
A separate agency will be created shortly to exclusively deal with the freehold title deeds registrations in Dubai.
According to officials in the Land Department, the two major works of the department - registration, and monitoring and regulation of the market, will now be handled by the new agency.
The Executive Director at the property division at Morison Consulting, Sudhir Kumar, said the rapid growth of Dubai real estate sector has made the move of Land Department inevitable.
He said that supervising the process of land registration and keeping tab on regulations are huge jobs, and it makes better sense to split these tasks, for better performance and efficiency.
The main role of the agency will be to grant license and regulate real estate brokers in Dubai. The agency will also supervise the escrow account which was introduced recently for safeguarding the buyers payments in special accounts.
The department plans to create two agencies under its wing, so as to keep pace with the strong flow of freehold property registrations, and various add-ons to the regulatory framework of the emirate.
This has been planned following an announcement by His Highness Shaikh Mohammad bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE and Ruler of Dubai, which led to the establishment of the Real Estate Regulatory Agency (RERA), the first body to be affiliated to the Land Department.
The agency has been assigned the task to supervise the key regulations pertaining to the property sector, including the recent regulations on trust accounts, real estate brokers and the responsibilities of Home Owners Associations (HOA).
A separate agency will be created shortly to exclusively deal with the freehold title deeds registrations in Dubai.
According to officials in the Land Department, the two major works of the department - registration, and monitoring and regulation of the market, will now be handled by the new agency.
The Executive Director at the property division at Morison Consulting, Sudhir Kumar, said the rapid growth of Dubai real estate sector has made the move of Land Department inevitable.
He said that supervising the process of land registration and keeping tab on regulations are huge jobs, and it makes better sense to split these tasks, for better performance and efficiency.
The main role of the agency will be to grant license and regulate real estate brokers in Dubai. The agency will also supervise the escrow account which was introduced recently for safeguarding the buyers payments in special accounts.
Labels: Dubai Real Estate, Latest News, Property Law, Real Estate News
Emaar announces reduced NOC charges
Emaar Properties has announced a major reduction of its certification charges for homeowners who wish to sell their properties.
The company has announced that the cost of issuing a Notification of Completion (NOC) certificate has been slashed by ninety percent, with the fee dropping down from Dh.5000 to Dh.500.
Such a measure was initiated due to complaints from various property owners about the high fee charges by Emaar in comparison to other developers.
Homeowners who already possess the title deeds for their properties should provide the Dubai Land Department with NOC while transferring their ownership to a second party.
Developer Nakheel has already decreased their fee for NOC from Dh.1000 to Dh.500. The fee is charged as verification charges for ensuring that there are no outstanding issues regarding property or any unpaid service charges.
The company has announced that the cost of issuing a Notification of Completion (NOC) certificate has been slashed by ninety percent, with the fee dropping down from Dh.5000 to Dh.500.
Such a measure was initiated due to complaints from various property owners about the high fee charges by Emaar in comparison to other developers.
Homeowners who already possess the title deeds for their properties should provide the Dubai Land Department with NOC while transferring their ownership to a second party.
Developer Nakheel has already decreased their fee for NOC from Dh.1000 to Dh.500. The fee is charged as verification charges for ensuring that there are no outstanding issues regarding property or any unpaid service charges.
Labels: Emmar, Real Estate Company, Real Estate News
New Property Law to boost institutional investments
Saturday, July 28, 2007
Developers and Analysts in Dubai are of the opinion that Dubai real estate could witness more institutional investment, due to the regulation issued by the government regarding safeguarding the payments of property buyers.
As per the regulation, published recently in the Official Gazette, the payment installments for off plan property will be paid into escrow accounts (also called guarantee accounts or trust accounts), which are authorized by the Dubai Land Department, along with an approved bank. The capital in the account will be released to the developer only when the construction milestones are met.
Prior to the issuance of this law, the investors money was unfettered. In the opinion of Tom O'Grady, a real estate partner at the Dubai office of global legal services, the regulation would prompt institutional investors such as insurance companies, banks and fund managers to invest huge sums into the Dubai property sector. He mentioned that the increase in the number of institutions entering the market, by itself, strongly indicates their growing confidence. And as far as Dubai is concerned, this could be another step forward in the right direction.
In fact, an article in the law states that a percentage of the project value should be retained in the escrow account for a year after the registration of all units. O'Grady mentioned that this will surely boost investor confidence, as end users could be confident about the quality of their property and they will have a hold over the developer in case any rectification of structural problems is required.
The President and CEO of Omniyat Holdings, Mehdi Amjad, mentioned that the law could potentially alter the investors profile in the Dubai property sector, and the realty market will witness a new flow of overseas investors with a very different demographic profile, in comparison to the investors who have been currently investing in the Dubai property sector from the time the property market was open to foreigners. Amjad mentioned that institutional investors, until now, were hesitant to invest in off-plan developments due the lack of security of their investments.
Even the developers seem to have spoken favoring the law, despite the fact that escrow accounts would restrict the developers’ access to any off-plan payments, leading to possible cash flow problems.
Sanjeet Joher, the COO of KM Holding, said "Such legislation is required for protecting the legitimate developers and consumers. This will help the Dubai real estate market and will leave a positive impact on the economy."
As per the regulation, published recently in the Official Gazette, the payment installments for off plan property will be paid into escrow accounts (also called guarantee accounts or trust accounts), which are authorized by the Dubai Land Department, along with an approved bank. The capital in the account will be released to the developer only when the construction milestones are met.
Prior to the issuance of this law, the investors money was unfettered. In the opinion of Tom O'Grady, a real estate partner at the Dubai office of global legal services, the regulation would prompt institutional investors such as insurance companies, banks and fund managers to invest huge sums into the Dubai property sector. He mentioned that the increase in the number of institutions entering the market, by itself, strongly indicates their growing confidence. And as far as Dubai is concerned, this could be another step forward in the right direction.
In fact, an article in the law states that a percentage of the project value should be retained in the escrow account for a year after the registration of all units. O'Grady mentioned that this will surely boost investor confidence, as end users could be confident about the quality of their property and they will have a hold over the developer in case any rectification of structural problems is required.
The President and CEO of Omniyat Holdings, Mehdi Amjad, mentioned that the law could potentially alter the investors profile in the Dubai property sector, and the realty market will witness a new flow of overseas investors with a very different demographic profile, in comparison to the investors who have been currently investing in the Dubai property sector from the time the property market was open to foreigners. Amjad mentioned that institutional investors, until now, were hesitant to invest in off-plan developments due the lack of security of their investments.
Even the developers seem to have spoken favoring the law, despite the fact that escrow accounts would restrict the developers’ access to any off-plan payments, leading to possible cash flow problems.
Sanjeet Joher, the COO of KM Holding, said "Such legislation is required for protecting the legitimate developers and consumers. This will help the Dubai real estate market and will leave a positive impact on the economy."
Labels: Investment Property, Latest News, Property Law, Real Estate News
The DCCI property branch and DPG to join hands
Monday, July 16, 2007
The Dubai Chamber of Commerce and Industry (DCCI) is expected to merge its Real Estate and Property Business Group with the Dubai Property Group (DPG).
This new group together, will be operational under the name of DPG, to represent, promote and protect the interest of the real estate community in Dubai.
According to officials, the merger is expected to form a direct link between the DPG’s ongoing debates, information seeking and recommendation activities and the status of DCCI as a legal institution with the capacity to execute the recommendations.
The DPG Chairmain, Ahmad Al Matroushi, said, "Through this merger, the joint membership base will have the representation it deserves, and the voice that it is striving for. By merging with DCCI, we intend to create a strong combination with more influence, more members and a greater pooling of information with lively exchange of ideas. This will also help in deepening the international business links with Dubai."
The merger will be completed towards end of this year.
This new group together, will be operational under the name of DPG, to represent, promote and protect the interest of the real estate community in Dubai.
According to officials, the merger is expected to form a direct link between the DPG’s ongoing debates, information seeking and recommendation activities and the status of DCCI as a legal institution with the capacity to execute the recommendations.
The DPG Chairmain, Ahmad Al Matroushi, said, "Through this merger, the joint membership base will have the representation it deserves, and the voice that it is striving for. By merging with DCCI, we intend to create a strong combination with more influence, more members and a greater pooling of information with lively exchange of ideas. This will also help in deepening the international business links with Dubai."
The merger will be completed towards end of this year.
Labels: Dubai Real Estate, Real Estate News
Tecom has set up SDC to design green buildings
Saturday, July 14, 2007
Energy and Environment Park (Enpark) by Tecom has given rise to a green building consultancy, namely, Sustainable Design Consultants (SDC) which is dedicated for providing building solutions in the UAE and in the region.
SDC offers advice on nearly seventy buildings in Dubai, including the DuBiotech, IMPZ, Dubai Studio City etc., which are designed as per the LEED (Leadership in Energy and Environment) guidelines.
Tecom CEO, Abdullatif Almulla, is said to have stated that Sustainable Design Consultants provide not just the local experience of implementing green building certification, but also provides a durable overall value to the community with a regenerative way of building.
"Setting up of SDC indicates that Dubai is actually responding to the global concerns regarding environment, as it builds up the resources and skills for sustainable planning so as to benefit the future generation," he added.
SDC has secured projects from real estate developers in Dubai, who will assist Enpark in developing itself into a sustainable free zone with its team of LEED, the accredited professionals expertized in development, design, execution and maintenance.
The Director of Enpark, Ali bin Towaih said "Green building projects with sustainable design requires planning ahead, as the selection of the site and building orientation will critically affect the future performance of planned activities."
"While initiatives are being made to advance green building principles in Dubai, SDC will consider implementing a better design and greener infrastructure which remains as a role model for a more pleasant community," Ali bin Towaih said.
SDC offers advice on nearly seventy buildings in Dubai, including the DuBiotech, IMPZ, Dubai Studio City etc., which are designed as per the LEED (Leadership in Energy and Environment) guidelines.
Tecom CEO, Abdullatif Almulla, is said to have stated that Sustainable Design Consultants provide not just the local experience of implementing green building certification, but also provides a durable overall value to the community with a regenerative way of building.
"Setting up of SDC indicates that Dubai is actually responding to the global concerns regarding environment, as it builds up the resources and skills for sustainable planning so as to benefit the future generation," he added.
SDC has secured projects from real estate developers in Dubai, who will assist Enpark in developing itself into a sustainable free zone with its team of LEED, the accredited professionals expertized in development, design, execution and maintenance.
The Director of Enpark, Ali bin Towaih said "Green building projects with sustainable design requires planning ahead, as the selection of the site and building orientation will critically affect the future performance of planned activities."
"While initiatives are being made to advance green building principles in Dubai, SDC will consider implementing a better design and greener infrastructure which remains as a role model for a more pleasant community," Ali bin Towaih said.
Labels: Dubai Real Estate, New Developments, Real Estate News
UAE Realty firms look beyond UAE
Friday, July 13, 2007
Despite being one of the most vibrant real estate industries, the UAE continues to pump a huge portion of its capital into overseas ventures.
Companies such as Emaar Properties, Tameer, Damac and ETA Star are targeting North Africa and South Asia. Emaar Properties has already launched about $110 billion worth of projects outside the UAE. The company has also now announced a new project, the Cairo Gate Mall, worth Dh.2.58 billion, in Egypt. The mall is expected to be the largest mall, covering 250,000 square meters in area.
"Emaar is diversifying some income sources and plans to generate sixty to seventy percent of revenues from its international operations," said Arif Amiri, the Director, business development, Emaar Properties.
Nakheel, though yet to venture outside Dubai, has recently announced the opening of Nakheel International, as a preparation for its overseas pursuits.
ETA Star, the Dubai-based company with a portfolio of Dh.7.5billion in the UAE, is already developing three projects overseas - The Jasmine Count and Technopark in Chennai, and The Gardens in Bangalore, with total value worth Dh.1.46billion invested in Indian developments alone.
Damac Properties has also emerged successful overseas. About more than half of its total portfolio comprises projects in Egypt. It has also expanded itself into Lebanon, Qatar, Kuwait and Turkey and is in the process of trying to secure a land bank in China.
Real estate analysts are of the opinion that this trend is likely to continue, with the maturing of the UAE property market, and dynamic emerging markets in Africa, Asia and Eastern Europe offer attractive returns.
The Property Consultants at the Colliers International are of the opinion that over the past five years, the real estate developers in UAE have done exceptionally well, and it is quite natural that they would want to succeed in international markets, as well.
Companies such as Emaar Properties, Tameer, Damac and ETA Star are targeting North Africa and South Asia. Emaar Properties has already launched about $110 billion worth of projects outside the UAE. The company has also now announced a new project, the Cairo Gate Mall, worth Dh.2.58 billion, in Egypt. The mall is expected to be the largest mall, covering 250,000 square meters in area.
"Emaar is diversifying some income sources and plans to generate sixty to seventy percent of revenues from its international operations," said Arif Amiri, the Director, business development, Emaar Properties.
Nakheel, though yet to venture outside Dubai, has recently announced the opening of Nakheel International, as a preparation for its overseas pursuits.
ETA Star, the Dubai-based company with a portfolio of Dh.7.5billion in the UAE, is already developing three projects overseas - The Jasmine Count and Technopark in Chennai, and The Gardens in Bangalore, with total value worth Dh.1.46billion invested in Indian developments alone.
Damac Properties has also emerged successful overseas. About more than half of its total portfolio comprises projects in Egypt. It has also expanded itself into Lebanon, Qatar, Kuwait and Turkey and is in the process of trying to secure a land bank in China.
Real estate analysts are of the opinion that this trend is likely to continue, with the maturing of the UAE property market, and dynamic emerging markets in Africa, Asia and Eastern Europe offer attractive returns.
The Property Consultants at the Colliers International are of the opinion that over the past five years, the real estate developers in UAE have done exceptionally well, and it is quite natural that they would want to succeed in international markets, as well.
Labels: Emmar, Nakheel, Real Estate Company, Real Estate News, UAE
Sungwon announces the launch of Dh.2.5bn Lagoons project
Thursday, July 12, 2007
Sungwon Corporation, a South Korean construction giant, is expected to announce the launch of a third project worth Dh.2.5billion in Dubai, the third largest by the company so far.
Sungwon's Vice President-Middle East, Richard Lee, said "We are developing Santevill at Business Bay and Santeview at Culture Village. So you can see the progression and could say we are following the water."
This progression has encouraged the company to select The Lagoons as its next destination for development. Dubai Properties is the master developer behind the Business Bay and Culture Village and Sama Dubai master developer of The Lagoons.
Lee has refused to reveal the details of the third project. But, said "During last July, we had said that we planned to invest Dh.4.4bn in Dubai during the next two years. Santevill and Santeview accounts for Dh.1.83bn. Santevill is inspired by the shape of dhow, and the twin towers of Santeview takes the shape of traditional Arabic architectural motif. "
Sungwon has entered into a deal with HSBC Bank Middle East, to provide conventional mortgages for buyers of its properties. The developer also has entered into a partnership with Amlak Finance for Sharjah-compliant home loans, earlier during this month.
Sungwon, is one among the largest integrated real estate companies in the world. According to the firm, it has built more than 130,000 apartments and 1000 high rise towers as contractor and developer.
Lee said "We undertake design, construction and marketing of our projects, which means significant savings, which we pass on to our buyers."
The Santevill apartments begin at Dh.1,100 per square foot, while the Santeview apartments will be competitively priced based on the starting price of the master developer, i.e., Dh.1850 per square foot. The enabling work has already been completed on Santevill, where eighty percent of units have been sold out.
Sungwon's Vice President-Middle East, Richard Lee, said "We are developing Santevill at Business Bay and Santeview at Culture Village. So you can see the progression and could say we are following the water."
This progression has encouraged the company to select The Lagoons as its next destination for development. Dubai Properties is the master developer behind the Business Bay and Culture Village and Sama Dubai master developer of The Lagoons.
Lee has refused to reveal the details of the third project. But, said "During last July, we had said that we planned to invest Dh.4.4bn in Dubai during the next two years. Santevill and Santeview accounts for Dh.1.83bn. Santevill is inspired by the shape of dhow, and the twin towers of Santeview takes the shape of traditional Arabic architectural motif. "
Sungwon has entered into a deal with HSBC Bank Middle East, to provide conventional mortgages for buyers of its properties. The developer also has entered into a partnership with Amlak Finance for Sharjah-compliant home loans, earlier during this month.
Sungwon, is one among the largest integrated real estate companies in the world. According to the firm, it has built more than 130,000 apartments and 1000 high rise towers as contractor and developer.
Lee said "We undertake design, construction and marketing of our projects, which means significant savings, which we pass on to our buyers."
The Santevill apartments begin at Dh.1,100 per square foot, while the Santeview apartments will be competitively priced based on the starting price of the master developer, i.e., Dh.1850 per square foot. The enabling work has already been completed on Santevill, where eighty percent of units have been sold out.
Labels: Lagoon, New Developments, Real Estate News
Land value in Dubai averages Dh.400 per Sq. Ft. - reports Land Department
Tuesday, July 10, 2007
According to the reports released by the Land Department, the land value in Dubai has averaged Dh.400 per square feet during the first half of this year. The total value of land transactions at the Dubai Land Department has touched Dh.38.55billion during the first six months.
There has been an average of 1857 cash sales worth Dh.16.49bn that involved about 41.34 square feet of land, i.e., an average of approximately Dh.399 per square feet of land.
The Dubai Land Department has witnessed 1359 mortgage transactions, worth Dh.18.08billion, and about 196 donations of land and property averaging about Dh.3.97billion during the period June 30th.
The cash sales of land involved about 102 districts in Dubai. A total of 1,622 transactions had taken place, which involved the sale of about 24.32m sq. ft. of open spaces for Dh.23.44bn. About 18.67m sq. ft. of developed land was also sold through 2,607 transactions.
Marsa Dubai district was the top selling one, with about 8.67 percent of total land sales. The prices ranged between Dh.171.52 to Dh.5670.11 per square foot. This was followed by Al Barsha First with 6.57 percent sales, worth Dh.1.08 bn., with prices ranging from Dh.220 to Dh. 7,789.68 per square foot.
The third largest district from sales point of view was Trade Center First with 6.07 percent sales recorded during the initial six months. Al Sheba district witnessed 5.06 percent of total sales.
There has been an average of 1857 cash sales worth Dh.16.49bn that involved about 41.34 square feet of land, i.e., an average of approximately Dh.399 per square feet of land.
The Dubai Land Department has witnessed 1359 mortgage transactions, worth Dh.18.08billion, and about 196 donations of land and property averaging about Dh.3.97billion during the period June 30th.
The cash sales of land involved about 102 districts in Dubai. A total of 1,622 transactions had taken place, which involved the sale of about 24.32m sq. ft. of open spaces for Dh.23.44bn. About 18.67m sq. ft. of developed land was also sold through 2,607 transactions.
Marsa Dubai district was the top selling one, with about 8.67 percent of total land sales. The prices ranged between Dh.171.52 to Dh.5670.11 per square foot. This was followed by Al Barsha First with 6.57 percent sales, worth Dh.1.08 bn., with prices ranging from Dh.220 to Dh. 7,789.68 per square foot.
The third largest district from sales point of view was Trade Center First with 6.07 percent sales recorded during the initial six months. Al Sheba district witnessed 5.06 percent of total sales.
Labels: Dubai Real Estate, Latest News, Real Estate News
Realty purchases by UK residents to be financed by NBD
Monday, July 09, 2007
With the aim of providing finance to UK residents intending to buy residential properties in UAE, the National Bank of Dubai (NBD) has announced a tie-up with John Charcol, a leading UK based mortgage adviser.
The mutually exclusive tie-up will also offer re-financing to US residents who have already invested in the Dubai residential realty sector. Even mortgages for residential properties, both under construction and the completed ones, from about fourteen reputed developers approved by NBD, are on the offer.
The Head of retail banking of NBD, Suvo Sarkar, says "This tie-up with John Charcol, is a part of innovative approach by NBD, to provide flexible products to a maturing home finance market so as to diversify our customer base."
The mutually exclusive tie-up will also offer re-financing to US residents who have already invested in the Dubai residential realty sector. Even mortgages for residential properties, both under construction and the completed ones, from about fourteen reputed developers approved by NBD, are on the offer.
The Head of retail banking of NBD, Suvo Sarkar, says "This tie-up with John Charcol, is a part of innovative approach by NBD, to provide flexible products to a maturing home finance market so as to diversify our customer base."
Labels: Mortgages, Real Estate News
Commercial space much in demand in Abu Dhabi
Sunday, July 08, 2007
The density of Abu Dhabi is almost five times that of the global average, and more than doubles that of Dubai, and hence finding a suitable office space is getting extremely difficult in Abu Dhabi, say new reports.
The HSBC Global Research has stated that "The office market in Abu Dhabi is tighter than the residential market, with ninety nine percent occupancy rates. Even the vacancy rates are as low as one percent in comparison to the global average of nine percent and two percent in Dubai."
Also, apart from quality of supply being low, most office buildings require renovation. According to Colliers International, approximately 744,580 Sq.mts of office space is likely to enter Abu Dhabi market by 2012, doubling the existing supply.
As per reports though the occupancy rates of Dubai and Abu Dhabi are ninety nine percent and ninety eight percent respectively, the office density is more than double in Abu Dhabi when compared to Dubai.
The Bank expects the upward trend in rents and prices to continue until the demand and supply meets equilibrium. According to Colliers International, office rents in Abu Dhabi have increased by more than thirty percent in comparison to 2006.
Though the rental rates of Dubai and Abu Dhabi seem to be moderate, the rental yields are on the higher side, at 7.8% and 8% respectively.
According to HSBC, however, the rents are expected to stabilize over the long term, though prices continue to rise until yields fall closer to the US risk-free rate, and thereafter, the prices may stabilize.
HSBC says "Similar to what has been observed earlier for office space, rental rates though comparatively cheap, yields are on the higher side. This trend could be noticed in most emerging markets, though the opposite is true in developed markets."
The HSBC Global Research has stated that "The office market in Abu Dhabi is tighter than the residential market, with ninety nine percent occupancy rates. Even the vacancy rates are as low as one percent in comparison to the global average of nine percent and two percent in Dubai."
Also, apart from quality of supply being low, most office buildings require renovation. According to Colliers International, approximately 744,580 Sq.mts of office space is likely to enter Abu Dhabi market by 2012, doubling the existing supply.
As per reports though the occupancy rates of Dubai and Abu Dhabi are ninety nine percent and ninety eight percent respectively, the office density is more than double in Abu Dhabi when compared to Dubai.
The Bank expects the upward trend in rents and prices to continue until the demand and supply meets equilibrium. According to Colliers International, office rents in Abu Dhabi have increased by more than thirty percent in comparison to 2006.
Though the rental rates of Dubai and Abu Dhabi seem to be moderate, the rental yields are on the higher side, at 7.8% and 8% respectively.
According to HSBC, however, the rents are expected to stabilize over the long term, though prices continue to rise until yields fall closer to the US risk-free rate, and thereafter, the prices may stabilize.
HSBC says "Similar to what has been observed earlier for office space, rental rates though comparatively cheap, yields are on the higher side. This trend could be noticed in most emerging markets, though the opposite is true in developed markets."
Labels: Abu Dhabi, Commercial Property, Real Estate News
Abu Dhabi realty management - Khalifa Committee
The Abu Dhabi Government had established the Department of Social Services and Commercial Buildings (DSSCB) during 1981, with an intention to organize and centralize all aspects pertaining to real estate sector. The DSSCB is also known as Khalifa Committee.
The main responsibility of the committee was to develop and manage residential properties, protect the right of tenants and maintain social justice. Since then, the committee has developed more than 100,000 residential units and about ninety percent of all buildings in Abu Dhabi are still administered by this committee.
But, with the onset of the economic boon in 2002, the DSSCB has been struggling hard to keep pace with the infrastructural needs of the fast growing emirate. This growth has created blockage in the property market.
The Government however, has been slowly reducing its dependency on the committee, and has been gradually returning the property management responsibilities, back to its owners, and has limited its role in property development.
However, during the recent past, a significant shift has been witnessed in Abu Dhabi's leadership approach to economic development. The Government has now adopted a more vigorous, entrepreneurial stance, enhanced by the empowerment of new generation of policy makers and business leaders. Thereafter, the real estate activities in Abu Dhabi has picked up significantly, permitting even non-nationals to buy leases.
Investments are being made at a rapid pace, on a wide range of new projects, most of which are focused on diversifying the economic base of the emirate and expanding its service sector.
The main responsibility of the committee was to develop and manage residential properties, protect the right of tenants and maintain social justice. Since then, the committee has developed more than 100,000 residential units and about ninety percent of all buildings in Abu Dhabi are still administered by this committee.
But, with the onset of the economic boon in 2002, the DSSCB has been struggling hard to keep pace with the infrastructural needs of the fast growing emirate. This growth has created blockage in the property market.
The Government however, has been slowly reducing its dependency on the committee, and has been gradually returning the property management responsibilities, back to its owners, and has limited its role in property development.
However, during the recent past, a significant shift has been witnessed in Abu Dhabi's leadership approach to economic development. The Government has now adopted a more vigorous, entrepreneurial stance, enhanced by the empowerment of new generation of policy makers and business leaders. Thereafter, the real estate activities in Abu Dhabi has picked up significantly, permitting even non-nationals to buy leases.
Investments are being made at a rapid pace, on a wide range of new projects, most of which are focused on diversifying the economic base of the emirate and expanding its service sector.
Labels: Abu Dhabi, Property Law, Real Estate News
Abu Dhabi witness property projects worth more than Dh.100bn
Saturday, July 07, 2007
Over the past few months, property projects that are worth more than Dh.100bn have been launched in Abu Dhabi, says the organizers of the Abu Dhabi Real Estate and Investment (IREIS 2008) property show.
The Director of Dome Exhibitions, Anoine Georges, said "Until last October, Abu Dhabi had seen real estate project announcements worth Dh.240bn. But in a time span of less than nine months, the figure has gone up by nearly fifty percent and has touched Dh.333.8bn, and this growth is expected to continue."
Among the recent projects in Abu Dhabi are: The Green Community by Masdar, the Dh.11bn Desert Island project by the Toursim Development and Investment Company, the Dh.7bn Building Materials City, and the Dh.7.34bn Marina Rise by Eshraq.
According to Abu Dhabi Chamber of Commerce and Industry, the investments in the construction and realty sector in Abu Dhabi are expected to contribute Dh.40 billion to the GDP of the emirate this year.
Georges said that almost every project being launched in Abu Dhabi, currently, is aimed towards high-income earners. "It is only a matter of time before the developers target the middle-income segment, a segment with huge potential," Georges added.
The Director of Dome Exhibitions, Anoine Georges, said "Until last October, Abu Dhabi had seen real estate project announcements worth Dh.240bn. But in a time span of less than nine months, the figure has gone up by nearly fifty percent and has touched Dh.333.8bn, and this growth is expected to continue."
Among the recent projects in Abu Dhabi are: The Green Community by Masdar, the Dh.11bn Desert Island project by the Toursim Development and Investment Company, the Dh.7bn Building Materials City, and the Dh.7.34bn Marina Rise by Eshraq.
According to Abu Dhabi Chamber of Commerce and Industry, the investments in the construction and realty sector in Abu Dhabi are expected to contribute Dh.40 billion to the GDP of the emirate this year.
Georges said that almost every project being launched in Abu Dhabi, currently, is aimed towards high-income earners. "It is only a matter of time before the developers target the middle-income segment, a segment with huge potential," Georges added.
Labels: Abu Dhabi, Investment Property, New Developments, Real Estate News
L&T-Eastern venture wins deal of Victory Heights at Sports City
Wednesday, July 04, 2007
The contract for the final phase of construction of the Dh.550 million Victory Heights, a villa community at Dubai Sports City, has been awarded to a joint venture between the Indian Construction giant Larsen and Toubro (L&T) Limited and Eastern Contracting LLC.
The project that has been undertaken by the joint venture involves construction of final phase of development of 295 villas. The villas are designed in eleven different styles, comprising, Spanish, Mediterranean and European architecture.
The villas that the Eastern and L&T joint venture company plans to construct will be located at Morella, Calida and Novelia villages in the Victory Heights Community.
Victory Heights is an exclusive villa community that covers 25 million square feet in area, and comprises 935 villas and town homes spread across The Dunes golf course. The eighteen-hole championship golf course is designed by renowned golfer Ernie Els.
Located within the first integrated sports city in the world, the Dubai Sports City, the development offers a wide range of amenities such as retail, schools, sports, leisure and community facilities.
The project that has been undertaken by the joint venture involves construction of final phase of development of 295 villas. The villas are designed in eleven different styles, comprising, Spanish, Mediterranean and European architecture.
The villas that the Eastern and L&T joint venture company plans to construct will be located at Morella, Calida and Novelia villages in the Victory Heights Community.
Victory Heights is an exclusive villa community that covers 25 million square feet in area, and comprises 935 villas and town homes spread across The Dunes golf course. The eighteen-hole championship golf course is designed by renowned golfer Ernie Els.
Located within the first integrated sports city in the world, the Dubai Sports City, the development offers a wide range of amenities such as retail, schools, sports, leisure and community facilities.
Labels: Dubai Sports City, Real Estate News
'Abu Dhabi homes are under-priced', says HSBC Global report
Saturday, June 30, 2007
Despite the 53 percent higher Gross Domestic Product (GDP) per capita in Abu Dhabi, the average residential property prices are almost ten percent cheaper, says new research.
The HSBC Global Research in its report mentioned that "if we take Dubai as a proxy and follow the regression trend, the current GDP per capita level, the pricing of the houses in Abu Dhabi stands at Dh.14,808 ($4,035) per Square meter, rather than Dh.11,230 ($3,060) says the new HSBC Global Research report."
Residential prices in Dubai and Abu Dhabi stand at Dh.12,371 and Dh.11,230 per square meter, respectively.
In case Abu Dhabi readily opens up the property sector to the same level as Dubai, the residential property prices are likely to shoot up, says the report.
Buyers from foreign countries are permitted to purchase 99 year leases, while the investment in properties is limited to specific areas in the capital.
According to HSBC, the market rigidities and the regulations are actually curbing the potential demand, and hence the prices.
Despite the population being highly skewed towards expatriates, the foreign property ownership is comparatively restricted. There is less incentive for the expatriates to win the residency status and the settlement is impractical.
Just as in other cities, foreign workers are not eligible for permanent residency or for citizenship. The report states that "Limited accessibility to mortgage lending, coupled with high mortgage rates that are as high as seven to eight percent, are actually blocking price appreciation." Moreover, the mortgage penetration rates are the lowest in the UAE. Penetration in Abu Dhabi is even lower as more than ninety five percent of home financing takes place in Dubai.
Due to such low penetration rates, growth rates are high, and the mortgage lending in the UAE is growing by almost eighty percent during 2006.
The HSBC Global Research in its report mentioned that "if we take Dubai as a proxy and follow the regression trend, the current GDP per capita level, the pricing of the houses in Abu Dhabi stands at Dh.14,808 ($4,035) per Square meter, rather than Dh.11,230 ($3,060) says the new HSBC Global Research report."
Residential prices in Dubai and Abu Dhabi stand at Dh.12,371 and Dh.11,230 per square meter, respectively.
In case Abu Dhabi readily opens up the property sector to the same level as Dubai, the residential property prices are likely to shoot up, says the report.
Buyers from foreign countries are permitted to purchase 99 year leases, while the investment in properties is limited to specific areas in the capital.
According to HSBC, the market rigidities and the regulations are actually curbing the potential demand, and hence the prices.
Despite the population being highly skewed towards expatriates, the foreign property ownership is comparatively restricted. There is less incentive for the expatriates to win the residency status and the settlement is impractical.
Just as in other cities, foreign workers are not eligible for permanent residency or for citizenship. The report states that "Limited accessibility to mortgage lending, coupled with high mortgage rates that are as high as seven to eight percent, are actually blocking price appreciation." Moreover, the mortgage penetration rates are the lowest in the UAE. Penetration in Abu Dhabi is even lower as more than ninety five percent of home financing takes place in Dubai.
Due to such low penetration rates, growth rates are high, and the mortgage lending in the UAE is growing by almost eighty percent during 2006.
Labels: Abu Dhabi, Mortgages, Property Prices, Real Estate News
Memon launches Champions Tower III
Friday, June 29, 2007
Memon Investments, the Dubai-based property developer, has launched Champions Tower III in Dubai Sports City, thereby taking the UAE portfolio of the company to the Dh.500 million mark.
The residential tower comprises sixteen storeys and is being constructed at a cost of Dh.145million and is due for delivery during early 2009. Construction will begin in August this year, says the company official.
The Champions Tower III follows the Champions Towers I and II, both of which were launched in Dubai Sports City and have been sold out.
The total value of the three Champions Tower projects including the Dh.80 million Cambridge Business Centre by Memon, located at the Dubai Silicon Oasis, are approximately Dh.500 million, which is a part of the Dh.1 billion investment plan of the company.
The residential tower comprises sixteen storeys and is being constructed at a cost of Dh.145million and is due for delivery during early 2009. Construction will begin in August this year, says the company official.
The Champions Tower III follows the Champions Towers I and II, both of which were launched in Dubai Sports City and have been sold out.
The total value of the three Champions Tower projects including the Dh.80 million Cambridge Business Centre by Memon, located at the Dubai Silicon Oasis, are approximately Dh.500 million, which is a part of the Dh.1 billion investment plan of the company.
Labels: Dubai Sports City, New Developments, Real Estate Company, Real Estate News
DIFC passes the Real Property Law
Friday, June 22, 2007
The Dubai International Finance Center (DIFC) Authority, after their sixty days consultation period, has passed the Property Ownership Laws, according to reports, yesterday.
The DIFC LAW Number Four of 2007 (Real Property Law) and (DIFC Law Number Five of 2007) Strata Title, as well as regulations that complement the laws have been endorsed by The Vice President and Prime Minister of UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum. The laws and regulations will take immediate effect.
The Law guarantees the ownership of freehold buildings and lands, and other interests in land within the DIFC.
The Law, though basically follows the English common law, also incorporates the Torrens system of land registration, which is popular in Australia, Canada, New Zealand, and Singapore.
As per this law, the land transactions can be registered in a central register, administered by the DIFC. The title interests that are already registered in the DIFC are "indefeasible."
Individuals opting to purchase property in the DIFC, or planning to lease or rent, or lend on the security of real estate in the DIFC, can rest assured that their investment is safe and is fully supported by the protection of the law.
The Strata Title Law establishes a system of guaranteed freehold title for units in buildings within the DIFC.
The law provides a combination of the benefits of guaranteed titles, clubbed with an administrative structure that has been designed to take care of day to day management of the buildings.
The DIFC says, it will help in overcoming the complexities of co-owners association constitutions, master community declarations, etc., through introduction of simple, but comprehensive system of rights and responsibilities.
The law, inline with the DIFC's mission as an International Finance Center, also provides an internationally proven system for registering real property ownership.
The DIFC LAW Number Four of 2007 (Real Property Law) and (DIFC Law Number Five of 2007) Strata Title, as well as regulations that complement the laws have been endorsed by The Vice President and Prime Minister of UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum. The laws and regulations will take immediate effect.
The Law guarantees the ownership of freehold buildings and lands, and other interests in land within the DIFC.
The Law, though basically follows the English common law, also incorporates the Torrens system of land registration, which is popular in Australia, Canada, New Zealand, and Singapore.
As per this law, the land transactions can be registered in a central register, administered by the DIFC. The title interests that are already registered in the DIFC are "indefeasible."
Individuals opting to purchase property in the DIFC, or planning to lease or rent, or lend on the security of real estate in the DIFC, can rest assured that their investment is safe and is fully supported by the protection of the law.
The Strata Title Law establishes a system of guaranteed freehold title for units in buildings within the DIFC.
The law provides a combination of the benefits of guaranteed titles, clubbed with an administrative structure that has been designed to take care of day to day management of the buildings.
The DIFC says, it will help in overcoming the complexities of co-owners association constitutions, master community declarations, etc., through introduction of simple, but comprehensive system of rights and responsibilities.
The law, inline with the DIFC's mission as an International Finance Center, also provides an internationally proven system for registering real property ownership.
Labels: Dubai Real Estate, Freehold Property, Property Law, Real Estate News
