Wasl to add 5000 new housing units into Dubai property market
Tuesday, November 10, 2009
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There will be an additional 5000 new housing units or moere in Dubai property market during the next couple of months by Wasl, the asset management arm of Dubai Real Estate Corporation (DREC), a top official said.
The Chief Executive Officer of DREC, Hesham Abdullah Al Qasim, revealed that Wasl already manages about 20,000 housing units. Now with the inclusion of these residential units, the total housing units under the company’s portfolio will touch 25,000.
Over the past year, there has been a natural transition of Dubai property market from freehold to leasehold. This will help in easing rents further, with mounting supplies.
The total housing supplies in Dubai this year may range from 27,000 to 30,000 according to the projections made by Department of Finance, which is hoped to be less than enough to cool the demand. But, with the impact of global economic crunch on UAE economy, the demand forecast has been revised further down.
Few analysts are still of the opinion that the current deliveries may result in an oversupplied market, which may bring down prices and rents down further. However, according to Al Qasim, the price readjustment has been good for market. The new supplies will help in stabilizing the market further, particularly when the demand in market picks up.
"We have a balanced portfolio of housing units that are 95 percent occupied, which gives us a very good coverage," he added.
Established in June 2007, the DREC combines the assets of Development Board and Dubai Real Estate Department through Law No.14, according to which, the corporation will be a public commercial institution, affiliated with Dubai Executive Council.
DREC is responsible for owning and managing its land bank, including sizable amount of properties registered under the name of Dubai Government, and others. The corporation holds a large portion of the Dubai land bank, however, it has no plans to enter the freehold property market.
Housing rents in Dubai surged between 2005-08 based on growing demand, which has compelled several thousands of Dubai residents to shift to places like Sharjah where rents were lower which pressurized the infrastructure. Growing rentals prompted the government to impose a rent cap to help the mid-income group, apart from seeking solid investment in low-cost or affordable housing that helps Dubai to tame housing inflation.
Wasl has continued to maintain its low rents in Dubai, despite the recent rent hike. Rent for a double bedroom flat has been as low as Dh.16,000 in few parts of Dubai even now.
In order to help the market and ease pressure on rents, DREC has undertaken a massive housing scheme to offer affordable homes for growing population. The new housing supplies are part of this plan.
Wasl is developing its businesses in several verticals such as Hospitality, Property, Leisure and Industries. About 5000 industrial units of Wasl are already spread across 27 industrial zones such as Jebel Ali, Al Quoz, Rashidiya, and on the hospitality side there are eight hotels under management. Wasl also gradually plans to add hospitality commercial and retail project development arms.
The Chief Executive Officer of DREC, Hesham Abdullah Al Qasim, revealed that Wasl already manages about 20,000 housing units. Now with the inclusion of these residential units, the total housing units under the company’s portfolio will touch 25,000.
Over the past year, there has been a natural transition of Dubai property market from freehold to leasehold. This will help in easing rents further, with mounting supplies.
The total housing supplies in Dubai this year may range from 27,000 to 30,000 according to the projections made by Department of Finance, which is hoped to be less than enough to cool the demand. But, with the impact of global economic crunch on UAE economy, the demand forecast has been revised further down.
Few analysts are still of the opinion that the current deliveries may result in an oversupplied market, which may bring down prices and rents down further. However, according to Al Qasim, the price readjustment has been good for market. The new supplies will help in stabilizing the market further, particularly when the demand in market picks up.
"We have a balanced portfolio of housing units that are 95 percent occupied, which gives us a very good coverage," he added.
Established in June 2007, the DREC combines the assets of Development Board and Dubai Real Estate Department through Law No.14, according to which, the corporation will be a public commercial institution, affiliated with Dubai Executive Council.
DREC is responsible for owning and managing its land bank, including sizable amount of properties registered under the name of Dubai Government, and others. The corporation holds a large portion of the Dubai land bank, however, it has no plans to enter the freehold property market.
Housing rents in Dubai surged between 2005-08 based on growing demand, which has compelled several thousands of Dubai residents to shift to places like Sharjah where rents were lower which pressurized the infrastructure. Growing rentals prompted the government to impose a rent cap to help the mid-income group, apart from seeking solid investment in low-cost or affordable housing that helps Dubai to tame housing inflation.
Wasl has continued to maintain its low rents in Dubai, despite the recent rent hike. Rent for a double bedroom flat has been as low as Dh.16,000 in few parts of Dubai even now.
In order to help the market and ease pressure on rents, DREC has undertaken a massive housing scheme to offer affordable homes for growing population. The new housing supplies are part of this plan.
Wasl is developing its businesses in several verticals such as Hospitality, Property, Leisure and Industries. About 5000 industrial units of Wasl are already spread across 27 industrial zones such as Jebel Ali, Al Quoz, Rashidiya, and on the hospitality side there are eight hotels under management. Wasl also gradually plans to add hospitality commercial and retail project development arms.
Labels: housing, New Developments
Dubai houses record 7 percent rise in prices during Q3 2009
Thursday, November 05, 2009
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Prices of housing units in Dubai saw an increase for the first time during the third quarter, following the major downturn faced by property market in the wake of credit crunch, reports Colliers International, the leading real estate consultancy.
Dubai, which houses the tallest buildings and man-made islands in the world, saw its property market hitting the bottom, with finance drying up, construction activities almost coming to a halt, and several projects being cancelled or delayed.
Colliers, in its third quarter report, mentioned that the house prices marked a 7 percent rise during the period, compared to that of the previous quarter, the first-ever increase after third quarter of 2008.
According to Colliers, the increase was largely due to availability of mortgage and more confidence about expatriate job security.
A statement by Colliers International said that the Q3 results indicates a bounce in the market, but the Q4 results should be waited and watched before predicting the existence of a growth profile or potential recovery.
The prices for villas, apartments and townhouses showed a modest increase during the quarter, compared to the second quarter when there was an increase in the number of deals also. Even market transactions during the third quarter showed a 64 percent increase over the second quarter, with apartments making up for majority of deals.
The Colliers index is mainly based on mortgage data from local and international lenders. It measures prices in the parts of Dubai where foreigners have been granted permission to purchase properties, ever-since Dubai opened its real estate market to foreigners in 2002. These areas were largely responsible for the Dubai real estate boom.
The improved condition in Dubai's real estate sector are inline with a nascent recovery in a more mature global property market, such as United States and Britain, the report said.
According to a Reuters poll in October, the prices will drop another 10 percent this year. Colliers however, reported a 47 percent drop year-on-year during third quarter.
The prices of housing had witnessed a 9 percent drop in the second quarter, but the pace of decline had slowed thereafter. The boost in the third quarter helped in bringing back the prices to levels last seen in second quarter of 2007, the Colliers report said.
Dubai, which houses the tallest buildings and man-made islands in the world, saw its property market hitting the bottom, with finance drying up, construction activities almost coming to a halt, and several projects being cancelled or delayed.
Colliers, in its third quarter report, mentioned that the house prices marked a 7 percent rise during the period, compared to that of the previous quarter, the first-ever increase after third quarter of 2008.
According to Colliers, the increase was largely due to availability of mortgage and more confidence about expatriate job security.
A statement by Colliers International said that the Q3 results indicates a bounce in the market, but the Q4 results should be waited and watched before predicting the existence of a growth profile or potential recovery.
The prices for villas, apartments and townhouses showed a modest increase during the quarter, compared to the second quarter when there was an increase in the number of deals also. Even market transactions during the third quarter showed a 64 percent increase over the second quarter, with apartments making up for majority of deals.
The Colliers index is mainly based on mortgage data from local and international lenders. It measures prices in the parts of Dubai where foreigners have been granted permission to purchase properties, ever-since Dubai opened its real estate market to foreigners in 2002. These areas were largely responsible for the Dubai real estate boom.
The improved condition in Dubai's real estate sector are inline with a nascent recovery in a more mature global property market, such as United States and Britain, the report said.
According to a Reuters poll in October, the prices will drop another 10 percent this year. Colliers however, reported a 47 percent drop year-on-year during third quarter.
The prices of housing had witnessed a 9 percent drop in the second quarter, but the pace of decline had slowed thereafter. The boost in the third quarter helped in bringing back the prices to levels last seen in second quarter of 2007, the Colliers report said.
Labels: housing, Property Prices
Housing project construction at Al Marjan on-track
Thursday, July 16, 2009
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Select Group and Select Property, the joint developers said that final piling and layout are underway for foundation of residential development on Al Marjan Island in RAK, as it remains on schedule for completion in June 2011.
The joint developers have fully completed all construction requirements and compiled escrow account regulations of Ras Al Khaimah Investment Authority (RAKIA), the government body responsible for socioeconomic growth of the emirate, as properties within the residential development are now offered with attractive payment plans.
Located in a prime location at the top isle of Al Marjan is Pacific, which offers exclusive private beaches and 24-hour concierge, roof top infinity pools, health clubs, steam rooms, saunas and Jacuzzi. The development is equipped with a complete range of complementary amenities including shopping outlets and dining.
The General Manager of Rakia Real Estate Regulatory Agency, Yehia Kambris, said that maintaining a healthy pace of development is a major priority, and that the progress of the project on Al Marjan is being closely monitored. Rakia has also been co-ordinating with all developers to ensure that all properties are built to the highest quality standards and specifications.
The CEO of Select Group, Rahail Aslam, said that Pacific will be one of the most exciting residential destinations in the region, with a wide range of contemporary residences within a well-done landscaped beachfront community.
Pacific comprises six contemporary designed residences, namely, Samoa, Tonga, Bora Bora, Tahiti, Fiji and Polynesia, each offering panoramic views of Arabian Gulf and natural serenity of RAK.
The residential complex will include spacious studios, single room apartments, double bedroom beach duplexes, Gulf suites and Pacific suites. Each beach duplex is located on the ground and first floor, permitting residents to fully exploit pacific's beachfront location and to enjoy a private garden area. The Pacific suites offer good views from a private balcony, while the Gulf suites are located at the tip of every residence.
The project will be one of the major highlights of Al Marjan, complementing the growing reputation of RAK as an upcoming lifestyle destination in the region.
Labels: Beach-front, housing, Ras Al Khaima
Mohammed Bin Zayed City residential towers design finalized
Friday, April 24, 2009
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The design of residential towers in Abu Dhabi's Mohammed Bin Zayed City has been finalized. On completion, the city will have the capacity to accommodate about 85,000 residents, it is said.
The Head of Planning and Co-ordination in the Town Planning Section of Abu Dhabi Municipality, Fadhl Al Braiki, said that stage one of the project is completed, and the design of the 349 residential towers have been finalized. Out of these, 12,000 residential units will be completed by 2012.
Located 15 to 20 kilometers away from the city, the development covers a gross built-up area of 5.8million square meters. The highest tower will include 22 storeys, while the lowest will cover 12 storeys. Each tower costs about Dh.70million, and includes shops, commercial establishments and underground parking.
The next stage of the project is to design the other services, including utilities, and the construction of towers and infrastructure projects will be completed simultaneously, Al Braiki said.
The project is hoped to ease the housing shortage in the emirate, as it targets the mid-income sector.
The Head of Planning and Co-ordination in the Town Planning Section of Abu Dhabi Municipality, Fadhl Al Braiki, said that stage one of the project is completed, and the design of the 349 residential towers have been finalized. Out of these, 12,000 residential units will be completed by 2012.
Located 15 to 20 kilometers away from the city, the development covers a gross built-up area of 5.8million square meters. The highest tower will include 22 storeys, while the lowest will cover 12 storeys. Each tower costs about Dh.70million, and includes shops, commercial establishments and underground parking.
The next stage of the project is to design the other services, including utilities, and the construction of towers and infrastructure projects will be completed simultaneously, Al Braiki said.
The project is hoped to ease the housing shortage in the emirate, as it targets the mid-income sector.
Shortage in supply of housing to ease out within 4 yrs in Abu Dhabi
Tuesday, November 11, 2008
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The demand for Abu Dhabi property units will be met in four years time, said Urban Planning Council General Manager, Falah Al Ahbabi.
Speaking to delegates at MEED Abu Dhabi Conference, Al Ahbabi said that the economy is growing at a rapid pace, but the infrastructure and buildings in Abu Dhabi will take atleast four years.
The developers are being pressurized and we are confident about solving the issue. The prices will stabilize and supply would come online, he said.
Shortage in supply of units is a fact, and has been an issue over the past two years. This shortage would continue for next 3-4 years, by which the demand and supply would meet, agreed Al-Ahbabi.
As per last month's report by Abu Dhabi Chamber of Commerce, Abu Dhabi has a shortage of minimum 28,000 housing units this year, and this has pushed up rents, and the total demand for units would touch 70,000 by 2010.
The population of Abu Dhabi is currently more than a million and has been growing at 7 percent a year.
Speaking to delegates at MEED Abu Dhabi Conference, Al Ahbabi said that the economy is growing at a rapid pace, but the infrastructure and buildings in Abu Dhabi will take atleast four years.
The developers are being pressurized and we are confident about solving the issue. The prices will stabilize and supply would come online, he said.
Shortage in supply of units is a fact, and has been an issue over the past two years. This shortage would continue for next 3-4 years, by which the demand and supply would meet, agreed Al-Ahbabi.
As per last month's report by Abu Dhabi Chamber of Commerce, Abu Dhabi has a shortage of minimum 28,000 housing units this year, and this has pushed up rents, and the total demand for units would touch 70,000 by 2010.
The population of Abu Dhabi is currently more than a million and has been growing at 7 percent a year.
Labels: Abu Dhabi, housing, Market Trends
Escape launches Saddle Homes in Ajman
Saturday, May 03, 2008
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Escape, an equestrian community which is currently under development in Ajman, has now launched a new housing concept to the market, through the launch of Saddle Homes.
The Saddle Homes are two-storey residences that are more like spaciously designed small villas that blend convenience and ease of an apartment. Being attractively priced, they are positioned in configurations of four, and will be amidst creative landscaping in the eight million square foot project.
Saddle Homes are situated on a subtle rise, facing the expanse of the community, and feature private parking bays, gardens, terraces, community swimming pools, and the wooden fencing that retains a fusion of Arabian, Mediterranean and Ottoman design influences and color schemes.
The two-bedroom units offer slightly different floor plan variations, and maximize the use of natural light, offering Spanish terra cotta flooring and high quality finishing. All residential options are a true blend of modern comfort with top quality details, while also retaining the traditional Islamic and Arabian architecture.
The Escape Sales Consultant, Aadil Sher said "Saddle Homes has been conceptualized to fit a niche in the market. These homes are ideal as a starter home for young couples, professional singles, or a holiday retreat for residents of other emirates or abroad. They are designed in a manner that provides maximum space, good value, and are attractive and easy to care for. This is a winning combination."
Launched during early 2007, villas at Escape witnessed rapid sales. The Saddle Homes are the next sales phase of the project. Apart from the 140 Saddle Homes, Escape offers about 500 three to four bedroom villas, and terraced and low-rise apartments, due to be released for sale in a couple of months.
The development also includes a boutique hotel, Hoofbeatz Activities Center Clubhouse, an equine spa, several multipurpose indoor and outdoor sports or riding arenas, and a mix of health, sports, and leisure amenities all focused on family entertainment. Located adjacent to Emirates Road on the Sharjah and Ajman border, Escape is easily accessible to major urban business and transportation hubs in Dubai and other Northern Emirates.
Escape is set to break ground in May 2008, and is due to be complete by December 2010
The Saddle Homes are two-storey residences that are more like spaciously designed small villas that blend convenience and ease of an apartment. Being attractively priced, they are positioned in configurations of four, and will be amidst creative landscaping in the eight million square foot project.
Saddle Homes are situated on a subtle rise, facing the expanse of the community, and feature private parking bays, gardens, terraces, community swimming pools, and the wooden fencing that retains a fusion of Arabian, Mediterranean and Ottoman design influences and color schemes.
The two-bedroom units offer slightly different floor plan variations, and maximize the use of natural light, offering Spanish terra cotta flooring and high quality finishing. All residential options are a true blend of modern comfort with top quality details, while also retaining the traditional Islamic and Arabian architecture.
The Escape Sales Consultant, Aadil Sher said "Saddle Homes has been conceptualized to fit a niche in the market. These homes are ideal as a starter home for young couples, professional singles, or a holiday retreat for residents of other emirates or abroad. They are designed in a manner that provides maximum space, good value, and are attractive and easy to care for. This is a winning combination."
Launched during early 2007, villas at Escape witnessed rapid sales. The Saddle Homes are the next sales phase of the project. Apart from the 140 Saddle Homes, Escape offers about 500 three to four bedroom villas, and terraced and low-rise apartments, due to be released for sale in a couple of months.
The development also includes a boutique hotel, Hoofbeatz Activities Center Clubhouse, an equine spa, several multipurpose indoor and outdoor sports or riding arenas, and a mix of health, sports, and leisure amenities all focused on family entertainment. Located adjacent to Emirates Road on the Sharjah and Ajman border, Escape is easily accessible to major urban business and transportation hubs in Dubai and other Northern Emirates.
Escape is set to break ground in May 2008, and is due to be complete by December 2010
Labels: Ajman, housing, Villa Projects
High land-prices considered a hindrance for low-budget housing
Saturday, September 01, 2007
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The property developers in Dubai have said that unless the government facilitates cheap land, the private developers will not go ahead with construction of low-budget housing.
The Chairman of New Dubai Properties, Ahmad Al Abdullah, says that the skyrocketing land prices imply that developers are in the process of constructing commercial blocks, hotels or luxurious residential projects that yield high returns on their investment, rather than the low or middle range units.
With such an escalation in land and house prices, the ability to purchase a plot or land among individuals of various income groups gets affected and in the process the ability of the emirate to draw attention from the talent required for further development is also shattered.
Al Abdullah said "We will build affordable housing if the government provides us land at an affordable price, and directs us not to raise rent above a fixed level. For instance, Dh.40,000 to Dh.50,000 for a two bedroom apartment. In case the plot is high in value, we will only construct a project that can cover the initial amount invested by us."
Al Abdullah mentioned that 40 percent of the project value makes up the price of the land, while the rest comprises the construction cost, which has also shot up considerably.
He added that with the unavailability of cheap land in Dubai, the private developers have no option but to consider other emirates including Ajman, where the land is much cheaper.
The Chairman of New Dubai Properties, Ahmad Al Abdullah, says that the skyrocketing land prices imply that developers are in the process of constructing commercial blocks, hotels or luxurious residential projects that yield high returns on their investment, rather than the low or middle range units.
With such an escalation in land and house prices, the ability to purchase a plot or land among individuals of various income groups gets affected and in the process the ability of the emirate to draw attention from the talent required for further development is also shattered.
Al Abdullah said "We will build affordable housing if the government provides us land at an affordable price, and directs us not to raise rent above a fixed level. For instance, Dh.40,000 to Dh.50,000 for a two bedroom apartment. In case the plot is high in value, we will only construct a project that can cover the initial amount invested by us."
Al Abdullah mentioned that 40 percent of the project value makes up the price of the land, while the rest comprises the construction cost, which has also shot up considerably.
He added that with the unavailability of cheap land in Dubai, the private developers have no option but to consider other emirates including Ajman, where the land is much cheaper.
Labels: Dubai Real Estate, housing, land, Property Prices
