Dubai Real Estate News
UAE Property Market Trends and Reviews

"; Dubai developers are considering renting out their new units on furnished basis to generate immediate revenue, real estate analysts said.

Few developers will want to convert their new developments into furnished apartments on short to medium or long-term basis, given the current market conditions, said Mohammed Nimer, CEO, MAG Property Development.

This will help in immediate revenue generation for them, rather than leaving their buildings without tenants. The furnished apartments have high rental value due to higher investment value.

The Executive Director of ETA, Abid Junaid, said that his company would be converting a project due for delivery during the third quarter of 2010, into a furnished model, and has hired Star Hospitality, to manage and offer services to the project.

The project, namely Grandeur Residences, located along the Palm Jumeirah, will comprise single, double and triple bedroom apartments and beach front villas. The highest floors of each block will house four exclusive penthouse suites, with private access to each via the spiral staircase to the terrace.

According to Junaid, the expected rate of return for such project is around 8 percent per annum, as a developer, but, as of now, it is about 6 percent, depending on occupancy and room rates.

According to real estate agents, the rentals for furnished apartments are 10 to 20 percent higher on an average than unfurnished apartments. Given, the current situation in Dubai real estate market, several investors have been prompted to look at acquiring furnished apartments for short-term leasing.

According to Gibran Bukhari, Sales Manager at Coldwell Banker, this year several individual units will be converted into furnished apartments.

The Sales Director of Elysian Real Estate, Robert Macnair, agreed that furnished property generated 15 to 20 percent premium over a typical unfurnished property.

For instance, a single bedroom Shoreline apartment on the Palm Jumeirah will fetch Dh.150,000 per annum by way of rent, while a similar unfurnished apartment will generate about Dh.120,000 per annum.

Better Homes, a prominent real estate agency, said that rents for furnished apartments fall in the range Dh.5,500 and Dh.8,500 per month.

Labels: Real Estate News, Rentals

"; The new free legal service launched to support people caught in real estate associated court cases, has proved to be a fair way to protect the interests of Dubai's real estate community, reports the Gulf News.

The main objective of such an initiative was to ensure fairness and justice to those concerned about property matters and those in need of such assistance, irrespective of the circumstances, clarified Mohammad Sultan Thani, Assistant Director General, Land Department.

The free legal advice service ensures that none is prevented from pursuing their rights just because they may be priced out of the system.

The Head of CBRE (CB Richard Ellis), the leading research and consultancy firm, Mathew Green, said that the free legal advice offer is another step in the right direction by RERA (Real Estate Regulatory Authority), as it aims to improve transparency in the Dubai property market.

Although the overall confidence in the legal dispute system has been little low due to the time taken in addressing the current backlog, one of the local law firms involved in this initiative said that justice for all is the main motto behind the initiative.

Labels: Property Law, Real Estate News

"; The Small and Medium Enterprises (SMEs) in UAE can help in boosting demand for both office space and affordable residential property in the UAE immensely, if provided access to bank loans to finance start ups, offered working capital and investment for growth and expansion, reveal industry experts.

According to the CEO of MAG Group Property Development, Mohammad Nimer, SMEs account for nearly 80 percent of the economic activity in the UAE, which implies that they employ a large number of staff on the whole, and these employees too need housing.

The Dubai Chamber of Commerce has said that such companies are facing trouble in securing credit from UAE banks, and if they are given credits, it is only for 3 to 6 months with interest rates of about 15 percent, as they fall under high-risk category.

Ruwad Establishment said that currently there are more than 260,000 trading and industrial companies in the UAE, out of which 200,000 fall under SME category.

SMEs in the UAE usually employ less than 100 employees with investments in the range Dh.200,000 to Dh.2million.

"Imagine the stimulus to the housing market alone, even if each SME averaged just one new employee per annum, apart from the benefits to wider economy airlines, restaurants, hotels, shopping and so on," Nimer pointed out.

However, a Dun & Bradstreet report recently estimated that the loan rejection rates in the UAE were in the range 50 to 70 percent, partly due to the difficulty by banks in gaining access to accurate financial statements and in rare cases due to the complex and time consuming process of recovering money or liquidating seized assets.

Labels: Real Estate News, UAE

"; Property developers in UAE are in the rush to establish their standing, reveals a report that analyzes PR activities of top eight developers in the UAE and the real estate sector in the UAE media.

The second quarter Real Estate Media Report of Mediastow, the leading media advisory and intelligence agency in the MENA (Middle East North Africa) region analyzed the media coverage of real estate in the UAE market, and the report was issued this week.

Out of the total 3962 articles with 168 titles that were monitored during the second quarter of the year, the report indicates that the real estate developers in the UAE are competing for prominence, said Mohamed Elzubeir, Head of Mediastow.

Trust plays a crucial role in enhancing the positions of these companies, and media is crucial not only in building the trust, but also in sustaining it, he pointed out.

The stocks of Emaar, Aldar Properties and Sorouh were monitored and correlated to the report. Aldar took the lead, followed by Sorouh and then Emaar during the first two weeks of May, although Emaar surpassed Sorouh from then on.

All the three developers reported a rise in the beginning of June, touching the peak during the second week of the month, coupled by the highly positive messages from merger news of these three companies, with a sharp decline on the 9th June.

The report states that Aldar and Sorouh are still trying to grab the opportunity to take over the real estate market leadership in UAE. The second quarter of the year also saw a dip in the margin of positive, yet non-PR coverage for the majority of property developers.

Towards June, there also seems to be a shift in pattern in terms of language penetration, where, several developers have moved on to Arabic coverage than English, the report said.

This has been further aided by the non PR coverage that they have received, mainly from Arabic publications.

On the whole, there seems to be a drop in coverage during the second quarter of 2009, Elzubeir continued.

Property developers should continue to penetrate many powerful, prominent and manifest mentions to continue to hold its solid positive reputation, which would further lead to better stock performance, move investments and higher sales, Elzubeir concluded.

Labels: Real Estate News, UAE

"; German and Austrian investors are demanding their money back from developers of Nikki Lauda, Borris Becker and Michael Schumacher towers in Dubai.

The investors had paid a total of about Dh.779.7m into funds to pay for the buildings. The investments were to be repaid from the capital gains.

The investors said that their money due in March is yet to be repaid, and that they are in consultation with lawyers to withdraw their money from the funds.

The investment company behind the project, Alternative Capital Invest (ACI), however, confirms that it has "solid assets", and the towers will go ahead.

The Managing Director, Robin Lohmann, mentioned that the money to repay investors were not available as the projects could not be sold as planned, amid the slowing market conditions.

Instead, he offered the investors with choice of either waiting until the assets of ACI gets liquidated, or choose a property asset owned by another company Falcon International Investment Group based in Dubai.

However, investors fear that if they accept the Falcon option, it may involve additional costs and risk. The investors claim that the ownership of Falcon's assets is unclear, although it is associated to ACI.

One of the investors mentioned that Falcon only speaks about reservation contracts of various properties, and reservation contract is not a purchasing contract.

Lohmann said "With this package, we intended to show people that we have ACI assets, and that in addition we also have in offer a security package through Falcon of fully paid assets, which is almost the double of what was due in March.".

Property buyers who have invested in off-plan apartments of ACI's buildings are also upset about the delays in construction.

Labels: Real Estate News

"; 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.

Labels: Real Estate News

"; 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.

Labels: Environment-friendly, Real Estate News

"; 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.

Labels: Nakheel, Real Estate News

"; 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.

Labels: Real Estate News, Sales, Tamweel

"; 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

Labels: Dubai City, Real Estate News

"; 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.

Labels: Abu Dhabi, Real Estate News

"; 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.

Labels: Middle-East, Real Estate News

"; 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.

Labels: Middle-East, Real Estate News

"; 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.

Labels: Deyaar, Mortgages, Real Estate News

"; 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.

Labels: Construction Projects, Jumeirah-Garden-City, Real Estate News

"; 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.

Labels: Property Law, Real Estate News

"; 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.

Labels: Property-show, Real Estate News

"; 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.

Labels: Market Trends, Real Estate News, UAE

"; 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.

Labels: Apartments, Dubai Real Estate, Real Estate News

"; 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.

Labels: Off-plan, Real Estate News

"; 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.

Labels: Property Law, Real Estate News

"; 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.

Labels: Property Law, Real Estate News

"; 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.

Labels: Dubai Real Estate, Market Trends, Real Estate News

"; 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.

Labels: Aldar, Real Estate News

"; 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.

Labels: Off-plan, Real Estate News

"; 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.

Labels: Mortgages, Real Estate News

"; 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.

Labels: Ajman, Real Estate News

"; 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.

Labels: Dubai Real Estate, Mortgages, Real Estate News

"; 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.

Labels: Market Trends, Real Estate News, 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.

Labels: Real Estate News, UAE

"; 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.

Labels: Real Estate News, UAE

"; 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.

Labels: Lagoon, Real Estate News

"; 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.

Labels: Abu Dhabi, Infrastructure, Real Estate News

"; 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.

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

"; 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.

Labels: Real Estate Company, Real Estate News

"; 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.

Labels: Market Trends, Middle-East, Real Estate News

"; 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.

Labels: Abu Dhabi, Real Estate News, Rentals

"; 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.

Labels: Real Estate News

"; 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.

Labels: Dubai Real Estate, Market Trends, Real Estate News

"; 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.

Labels: Dubai Real Estate, Real Estate News

"; 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.

Labels: Real Estate News, UAE

"; 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.

Labels: Real Estate News, Sales

"; 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.

Labels: Dubai Real Estate, Real Estate News

"; 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.

Labels: Emaar, Luxury Homes, Real Estate News, Villa Projects

"; 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.

Labels: Mortgages, Real Estate News

"; 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

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Labels: Abu Dhabi, Consultancy, Real Estate News

"; 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.

Labels: Dubai Real Estate, Real Estate News

"; 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.

Labels: Real Estate Company, Real Estate News, Real Estate Projects

"; 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.

Labels: Market Trends, Property Prices, Real Estate News

"; 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.

Labels: Real Estate Company, Real Estate News, UAE

"; 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.

Labels: Mortgages, Real Estate News

"; 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.

Labels: Business Bay, Office Space, Real Estate News

"; 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 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

"; 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."

Labels: Construction Projects, Real Estate News

"; 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.

Labels: Dubai City, Dubai Real Estate, Real Estate News, Rentals