Dubai Property | Dubai Real Estate

Property Prices may Recover by 2012

2011-01-24T09:54:00.000+04:00

Image via WikipediaResidential market in Dubai will continue to experience a situation of oversupply with prices not expected to recover before 2012, Jones Lang LaSalle (JLL) said on Sunday.
"Although there are recent pockets of stabilisation for Dubai's higher end residential product, lending will remain a key factor in market recovery. The residential market will likely see improved lending during 2011 as more banks are injecting liquidity into the mortgage market," the global real estate consultants said in its fourth quarter report.
A total of approximately 7,800 units were completed in 2010, bringing the total residential stock to around 309,301 units as at the end of 2010. A further 25,500 units are expected to be completed in 2011. Apartments will constitute of 79 per cent of total residential stock by the end of 2011.
"Some major residential projects have restarted and are scheduled for completion for the first half of 2012.
Although some construction delays are likely, no major cancellations are expected of projects scheduled for 2011 as increased certainty returns to the market," the report said, adding Nakheel's projects in Jumeirah Park, Dubai Waterfront, Jumeirah Heights and Jumeirah Village are scheduled to restart sometime in 2011.
Marwan bin Ghalitha, CEO, Real Estate Regulatory Agency, said recently that 202 projects had been cancelled in 2010 and a number of project cancellations were likely in 2011.
Apartment rents, JLL said, on average decreased by eight per cent year-on-year (y-o-y), while quarter-on-quarter decline was of four per cent. Villa rents dropped 11 per cent (y-o-y) and q-o-q decrease was of one per cent.
However, average asking prices declined marginally since the third quarter with achieved prices falling two per cent to Dh790 per square foot.
The total value of residential transactions plunged 65 per cent compared to 2009 with the number of residential transactions declining 53 per cent.
"A general easing of lending conditions is likely to result in an increase in sales activity in 2011," JLL said.
Office vacancies on the rise

The current oversupply situation in the office market is likely to continue with vacancy rates expected to increase through the year across the city, putting downward pressure on rent.
"Relocation to better grade properties in better localities is expected with older and inferior properties facing higher vacancy rate and rental decline. Rentals are close to the bottom in the less popular area such as in Jumeirah Lakes Towers (JLT), but CBD rental are expected to drop further in 2011," the report added.
Total office stock as at the end of the fourth quarter was approximately 55.6 million square feet. Only 60 per cent of the 20 million square feet was expected to be released in 2010 was completed, including new completions in Business Bay, JLT and Sheikh Zayed Road in the fourth quarter.
"We expect 2011 new supplies to be around 12 million square feet, broadly similar with 2010 figure. Further postponement and cancellation of projects are expected, which might reduce 2011 completion figure," JLL said.
Tenant demand remains focused on single ownership space within the CBD area (from the World Trade Centre to Downtown Burj Khalifa), with very little demand for strata titled space or for that in less established locations.
City-wide vacancy rates increased to 41 per cent and are expected to exceed 45 per cent over the next year as new supply continues to be released.
Office rents in CBD decreased by 21 per cent in the fourth quarter to around Dh150 per square feet, while average city-wide rents decreased by 30 per cent to around Dh105 per square feet.
Capital values declined by over 20 per cent y-o-y and a q-o-q drop of 14 per cent to Dh1,050 per square feet, the report said.

New Residential Units from Sorouh Real Estate

2010-11-10T09:47:00.000+04:00

Abu Dhabi: Sorouh Real Estate, a major Abu Dhabi-based real estate developer, plans to deliver about 2,500 new residential units to end users in the emirate by the end of 2012, Gurjit Singh, the company's chief operating officer, said here yesterday.

"The deliveries will start in the first quarter of 2011, in phases. The handovers will begin with some apartments being delivered in Sun and Sky Towers," Singh told reporters on the sidelines of an industry conference. He said Sorouh's focus is on the delivery of its existing developments that are nearing completion and securing income from properties which will generate rental revenues. Singh said Sorouh delivered projects such as Khalidiya Village, Al Oyoun in Al Ain and Sas Al Nakhl which gave a boost to the company's rental income portfolio. "We are focused on the longer-term income portfolios which will have a multiplier effect in consolidating income for the company. We have finished Golf Gardens development, located adjacent to the Abu Dhabi golf course. Our Gate Tower project is on schedule to be completed in late 2012," said Singh.

Consolidation

Singh said 2010 has seen a lot of consolidation right across all asset classes in Abu Dhabi. "In my opinion, 2011 will see further consolidation as rental and capital values will drop to a level where people will come back to the market," he said.

Speaking on securing financing for the projects, Singh said the financial institutions are becoming more flexible in terms of their packaging, but liquidity remains tight. "It's very selective," he added.

Singh said the Abu Dhabi government's support for key infrastructure projects has kept up demand for real estate products, although he noted that sales of residential properties are still "very slow." Singh said real estate rents in the near-term will continue to fall as new supply comes onto the Abu Dhabi market.

Source: gulfnews.com

A Quick Fix Won't Do For Dubai Property Recovery: Survey

2010-11-09T15:56:00.000+04:00

DUBAI, Tuesday 9 November 2010 (Bernama) -- A holistic and coordinated approach is needed to enhance the opportunity for Dubai's real estate market recovery, according to a report.

"A quick fix is not likely to succeed and a targeted group of stimuli is required while a coordinated medium to long-term plan should be implemented across the market," leading United Arab Emirates' law firm, Hadef & Partners said in its report on the legal state of the real estate market in this Gulf emirate.

These were some of the key themes emerging from a survey conducted by the firm which had identified actions that could be considered to address key issues with the aim of assisting the market's recovery.

The report noted that many respondents felt the current laws and regulations were developer-friendly, and that increased awareness of the needs of demand-generating participants, such as investors, banks and other institutions, was required.

"It's widely recognised that Dubai has taken considerable steps towards enhancing the sophistication of the real estate market in the last five years and is the regional market leader.

"But it has some way to go before being compared to the likes of London, New York and other leading markets," it said.

Dubai's real estate market is still in the doldrums, marked by slow sales as well as delayed or cancelled projects in the wake of the Emirate's property correction.

In what is believed to be the first of its kind survey, Hadef & Partners assessed views gleaned from over 500 completed responses received between September and October this year.

Many respondents took the time to provide detailed and extensive comments, according to the firm.

It said the favoured market stimulus options suggested by respondents included more flexible residence visa options for owners and investors.

They also hinted at the need for enhanced finance options for real and sustainable end users.

"Eighty-eight% of respondents felt an improved finance availability would assist in market recovery and approximately 75% believed that financial institutions are not adequately supporting the Dubai real estate sector," the report highlighted.

Most respondents favoured greater transparency on project cancellations and suspensions to ease concerns over the projected rate of further supply.

They also alluded to the need for efficient and less expensive dispute resolution procedures, together with an enhanced access to information.

"Many respondents highlighted a desire to have some other formal procedure in place that does not require the time and expense of going to court," the report observed.

Hadef & Partners is a full service UAE business law firm founded in 1980 by Dr Hadef Al Dhahiri, the current UAE Minister of Justice.

No recovery in property prices likely before H2 2011

2010-10-03T22:27:00.000+04:00

Dubai's residential market continues to be oversupplied and prices are not expected to recover before the second half of 2011 at the earliest, according to Jones Lang LaSalle (JLL).

About 9,000 more residential units are expected to be completed by the end of the year, the global real estate consultancy company said in its report on Sunday.

"Even if these are not completed and handed over in time, Dubai's residential market continues to be over supplied and prices are not expected to recover before the second half of 2011 at the earliest," the consultancy said.

As the market has become more competitive (cheaper) from a tenant's perspective, the overall volume of leasing activity has increased.

Dubai remains the preferred location within the Mena region for many international occupiers and as occupancy costs continue to decline, this interest has resulted in an increase in the number of leasing transactions taking place.

"While conditions are expected to move further in favour of tenants over the next six months, it is important to recognise the Dubai market is far from uniform, operating as it does as a series of relatively discrete sub-markets, each driven by its own distinct drivers," the report said.

The Dubai office market also continues to move in favour of tenants as increased supply has driven rents down and vacancies up across the market. For the first time, tenants now have a wide selection of competing buildings from which to choose. This is leading to an increasingly polarised or "two tier market" displaying a number of different dimensions, the JLL report said.

Dubai Stocks Hit 3-month High; Volumes Cross 200m Mark

2010-09-07T10:23:00.000+04:00

Bulls continued to rule for the second consecutive day on the Dubai Financial Market as investors went back into the ring amid hopes the market will sustain the rally after Eid.

The DFM benchmark index on Monday rose to three-month high, supported by high volumes that crossed the 200 million mark due to increased trading activity ahead of the Eid holidays, starting tomorrow.

The DFM General Index climbed 30.79 points, or two per cent, to 1,568.88 points, its highest finish since May 31. Volumes hit a two-month high as the traders exchanged 204.06 million shares worth Dh393.38 million compared to 103.22 million shares on Sunday. Sentiments remained positive throughout the day as out of 25 shares traded on the exchange yesterday, 20 posed gains and only five declined.

Emaar Properties continued its upward trend and surged 3.14 per cent to Dh3.61 while Arabtec and Dubai Financial Market Company advanced 4.7 per cent and 5.3 per cent, respectively. This trio accounts for two-thirds of all shares traded on the benchmark.

“There is a concentration on the bluechips and high beta names like DFM, Emaar and Arabtec,” said Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments. “Investors are interested in these stocks after they were severely over-sold going into Ramadan.”

In the aviation sector, Air Arabia gained 2.26 per cent to Dh0.82, but Aramex fell 0.57 per cent to Dh1.75.

“These gains are sustainable — we were always talking about a rush at the end of Ramadan from investors taking positions ahead of a likely rally after Eid,” Shurrab said. “International sentiment has helped us and a positive open to European markets today brought in some extra volumes to our markets.”
Property shines on ADX

The Abu Dhabi Securities Exchange’s General Index steady progress continued as the volumes crossed the 100 million mark. Property shares lifted the benchmark index, which rose 10.13 points, or 0.4 per cent, to 2,517.39 points.

Sorouh Real Estate climbed 4.35 per cent to Dh1.68 while Aldar Properties advanced 3.03 per cent to Dh2.38. RAK Properties gained 2.5 per cent to Dh0.40.

In banking sector, Abu Dhabi Commercial Bank surged 6.29 per cent to Dh1.86 while First Gulf Bank and Union National Bank dropped 0.36 per cent and 0.32 per cent, respectively.

In terms of value, Aldar Properties remained on top as its shares worth Dh51.23 million traded on the exchange. In terms of volume, Dana Gas stayed on top as its 43.27 million shares exchanged hands yesterday.

Investing in Dubai Properties

2010-08-07T19:22:00.002+04:00

At present, Dubai is a city famous throughout the world. For its constantly expanding in different parties such as corporate real estate industry and the real, Dubai has become the center of attraction for millions of people and communities worldwide. Now, Dubai is moving away from its traditional oil dependence to a more balanced supported by industry and services. Therefore frugalness Dubai increased by more stations to go to achieve this goal.

There are several reasons why you should consider for your Dubai property investment. In fact, the properties of Dubai are hot topics in commercial real estate market International Realty real. Investing in apartments, offices or villas in Dubai may be the most decisive mark in life. Buy, sell or rent, you can do what you want and in any case, you can expect a rapid return on investment. In fact, Dubai is today a service center and a financial services center for foreigners. The number of foreigners are more and more time period in Dubai. They meet there to work with a high salary and tax-free status. The concept of standard of the quantity of goods in Dubai is typical. Currently, individual apartments that provide the best facilities in the form of rent Dubai. Foreigners working in Dubai are individuals. And it would be a great asset Realty real deal for you.

Today, there are many attractions that are well made in Dubai and it will notice an increase in tourist visitors to Dubai. If you can control a concept in some famous places that Jumeirah Village, Dubai Sports City and Jumeirah Lake, the Burj metropolis, etc, then you have the possibility of happiness you'll be able to hire people to discover your idea of the holidays. In addition, when considering the cost of the metropolitan concept with other famous places such as London property, New York concept, etc., you will find that prices are relatively low but the quality is equal. But it was hoped that the prices of real estate properties in Dubai will put to flight in the coming years.

Dubai Real Estate Market

2010-08-06T03:29:00.001+04:00

Dubai is the seventh emirate in United Arab Emirates which is second largest in area after Abu Dhabi. The major part of the revenue in Dubai is generated from property and tourism. This is one reason that most of the people prefer investing in Dubai Real Estate Market so as to make profitable deals and earn huge gains. The real estate projects in Dubai are simply mesmerizing and are a center of attraction for its visitors. The climate in Dubai is also arid making it a perfect option for the realtors to invest in.

Opportunities for Buyers

Various opportunities are available for the buyers in Dubai, as the real estate market offers a great assortment to people. Flats, apartments, mansions, condos and lots more, buyers have a huge choice to select something that can suit their requirements as well as taste. Buyers who believe that Dubai Real Estate Market needs a lot of investment can locate different properties to get exactly what they are looking for within incredibly reasonable prices. The best part is that people can easily obtain the property at a favorable location without having to bother about extra charges.

Opportunities for Investors

Just like buyers, investors can also get facilitated by making investment in the Dubai Real Estate Market. There are numerous options for the investors from where they can purchase property at reasonable prices and then sell it at fruitful prices making out great profits. Dubai real estate has facilitated several people to earn huge profits from their properties and get the best out of the market. All they need to keep in mind are the associated laws which are essential, especially while purchasing or selling a property. If they are new to the real estate market, then real estate agents can provide a lot of assistance in managing the legal paper work and other required obligations.

UAE property market still struggling

2010-08-02T10:41:00.001+04:00

Dubai: Prices for UAE property came down again in the last quarter at an average of 4 per cent, with villas performing the strongest, according to Colliers International House Price Index, suggesting a trend for the remainder of the year.

"We anticipate a further slowdown and we have an ongoing concern of the new supply entering the market, which will further impede recovery," said Ian Albert, regional director, Colliers International.

Another 33,000 units expected to come online by year end are the main reason to be less optimistic about the market despite stabilising since the steep high and subsequent drop of 2008 and 2009. However, some of the supply could be further delayed into 2011, but current occupancy figures suggest that there is enough on the market as it is.

"There are already more than 340,000 residential properties in Dubai with an average occupancy rate of 87 per cent, with further declines anticipated. The market simply cannot absorb the additional supply unless the population grows and/or the release of stock is slowed down," Albert said.

House prices are back to the earlier parts of 2007 yet, according to the Colliers Index, house price values overall still enjoyed a 7 per cent increase when comparing the second quarter of last year with the current one. The index is based on statistics of lenders transactional prices and sets the blended average house price for the second quarter at about Dh1,014 per square foot.

Villas are tops

Villas fared better than apartments, comparing this quarter to the first of this year. The former decreased by only 3 per cent, whilst the latter's prices fell 5 per cent. Interestingly, townhouses took the biggest hit of an 8 per cent price reduction.

"The reason why townhouses have taken a larger hit than villas is simply because as the market corrected, many families upgraded to villas as more became available and affordable," said Tom Bunker, Investment Sales Consultant, Better Homes.

Reason he says, villas are typically larger and in most cases have a half decent back yard, sometimes absent in townhouses. "Many of the townhouse communities are a little more out of the way," he added.

Villas also trumped on the number of transactions with 49 per cent of the total, followed by apartments with 34 per cent and the 17 per cent remaining going to townhouses. Interestingly, buyers seem to spot value, the number of transactions has been 15 per cent higher this second quarter than in 2009's.

Hot spots

Popular villa communities are in the Emirates Living District thanks to the quick and easy access to Shaikh Zayed Road and beyond, said Bunker. The favourite within is The Lakes, reckons Kim Robinson, residential sales and leasing manager, Cluttons.

"The Lakes is an upgrade to The Springs. Prices dropped so much that families who are looking for space, better feel and facilities can now afford The Lakes independent villas. We recently sold one upgraded to a five-bed for Dh3.6 million net," she detailed. Others in vogue are the Montgomery Maisonettes, luxury townhouse type.

The average occupancy rate in Dubai's existing 340,000 residential properties is 87 per cent and is expected to decline, according to Colliers. With rents at half of what they were in 2008 the lack of return on investment is further subduing buyer's appetite, Albert said.

Top five by price

1 The Palm Jumeirah — Villas
2 Downtown Dubai
3 The Palm Jumeirah — Apartments
4 Dubai Marina
5 The Lakes — Villas

Top 5 developments by number of transactions

1 Arabian Ranches
2 The Springs
3 Victory Heights
4 Downtown Dubai
5 Green Community

Properties must be registered with Land Department

2010-06-27T22:43:00.002+04:00

New legal principle states that any property purchased in Dubai has to be registered to be deemed legal.

The Dubai Court of Cassation has set a new legal principle that any property that is purchased in the emirate has to be registered with the Land Department for it to be deemed legal.

The legal principle was issued after the court heard a case regarding a plot of land that was purchased, but not registered. The dispute was between the heirs of an owner of a plot of land in the Khawaneej area and a man who purchased the land from their late father in 1989, but had failed to register the contract with the Land Department in Dubai.

The heirs told the court that the 100,000 square feet of land was given to their father by the Dubai Ruler and was registered in his name. The land was also registered in their names at the Land Department.

The buyer seized part of the land where a factory has been built.

The Land Department referred the dispute to Dubai Court, which rejected the suit. The heirs appealed the verdict and the Court of Appeal approved the appealed verdict. The heirs challenged the ruling at the Court of Cassation.

The court ruled that the buyer evict the plot of land and hand it over to the heirs empty.

Dubai to seize properties from defaulters

2010-04-25T21:33:00.000+04:00

ABU DHABI, April 25 (Xinhua) -- Authorities in Dubai, a member of the seven-strong federation United Arab Emirates (UAE) may seize off-plan properties if owners are in default on payments, a local English daily reported Sunday.

Investors who fail to make outstanding payments within two weeks could lose their property, Mohammed Sultan Thani, assistant director general of the Dubai Land Department, was quoted as saying by The National.

The rule, which applies to properties that are more than 80 percent complete, will help several delayed and unfinished projects in Dubai reach completion, he said.

"The idea is to see what we can do before the property is cancelled," Thani said. "Very few people will opt for not completing payments if the building is almost ready."

Forty percent of any money paid so far will be confiscated and the property will be sold at auction with the profits going to the developer, according to The National.

During the property boom years, many developers depended on the off-plan model, which analysts say fuels speculative buying and inflates prices since the property is sold before building work starts to provide finance for construction, the paper said.

As the global financial crisis hit the region and property prices fell more than 50 percent in Dubai, many buyers reportedly stopped paying their monthly installments on properties that had fallen sharply in value.

Source: Xinhuanews

Jones Lang LaSalle Paints Rosy Future for Emirate's Real Estate Market

2010-04-21T22:55:00.000+04:00

Despite office vacancy of 35 percent and falling residential rents, a new Jones Lang LaSalle remains bullish on Dubai real estate.

Emirates Business, owned by Dubai Media Inc., cites a new Jones Lang LaSalle report that predicts Dubai's residential market prices are likely to recover by 2011 with the sector experiencing an over-supply of residential properties in the emirate.

The report expects Dubai to deliver a total of 22,000 residential units in 2010 and 25,000 in 2011.

By end of the first quarter of 2010, Dubai completed 22 per cent of the 22,000 units to be delivered in 2010, taking the total residential stock currently to 278,000 residential units and 320,000 units at the end of 2011.

Apartments will make up 77 per cent of Dubai's total residential stock by the end of 2011.

Project delays and cancellations are likely to continue into 2010, reducing future supply estimates, said the report.

Between the third quarter of 2009 and the fourth quarter of 2009, Dubai saw an increase of both the number of transactions and value of transactions, which rose by 12 per cent and 31 per cent respectively.

This, however, decreased in the first quarter 2010, due to a time lag in registered transactions.

Both the number and value of transactions peaked in the second quarter of 2009 and dipped in the third quarter of 2009, rising once again towards the end of 2009.

Meanwhile, apartment rents continued to decrease while villa rents stabilized.

Residential asking prices marginally increased since the fourth quarter of 2009 with the "achieved prices" declining by -5 per cent to touch around Dh860 per square foot.

Apartment rents have seen a year-on-year decrease of -21 per cent and quarter-on-quarter decrease of -4 per cent with affordable areas seeing larger declines than high-end residential communities.

Villa rents show a year-on-year decrease of -32 per cent and Q-o-Q change of -1 per cent.

JLL said lending would be a key factor in market recovery. The residential market saw signs of improved lending throughout 2009, which was reflected in an increase in sales transactions.

The value of mortgages as a percentage of sales value increased throughout 2009 from 33 per cent in the first quarter of 2009 to 46 per cent in the fourth quarter of 2009 and is expected to increase further in 2010 as more mortgage funding becomes available.

Project delays and cancellations are likely to continue into 2010, reducing future supply estimates, according to JLL.

Certain locations within the office sector are facing further downward pressure on rentals with the overall vacancy rate in Dubai increasing to around 35 per cent and likely to exceed 45 per cent by the end of the year.

The Central Business District vacancy increased from 10 per cent to 15 per cent over the last quarter as buildings in Business Bay start to complete.

The report said that vacancies in the office sector continued to increase with the addition of 1.8 million square feet of new stock being completed in the first quarter of 2010, which include office buildings such as Business Bay (One Business Bay and O-14).

Meanwhile, the total office stock at the end of the first quarter of 2010 stands at about 46 million square feet consisting of office buildings in Business Bay, Dubai International Financial Centre (DIFC), Jumeirah Lake Tower (JLT) and Tecom.

An additional 30 million square foot of office space is scheduled to be released in the next two years across 2010 and 2011.

Total tenant demand as per JLL inquiries at the end of the first quarter of 2010, amounted to 2.5 million square foot of office space.

Existing tenants are still looking to dispose off surplus space with the total of 300,000 square foot of previously fitted out tenant disposable space available. The financial and professional services sector consists of 50 per cent of total current occupier demand.

JLL said that falling rents have encouraged more businesses to implement strategies for their future growth.

Demand in 2010 will fall short of additional supply causing vacancies to increase across the market and rents to fall further.

Although Dubai's office market is likely to experience a supply overhang, there is still a shortage of good quality future supply which is likely to cause vacancies in the CBD to increase at a much slower pace than the rest of the city throughout 2010

Average rents peaked at the fourth 2008 and have declined to around Dh200 per square foot.

www.realestatechannel.com

No Dubai property rebound before 2011

2010-04-21T22:52:00.001+04:00

Dubai's real estate sector will not see a recovery until 2011 at the earliest due to an oversupply of properties, Jones Lang Lasalle has predicted.

In its latest report on the emirate's homes market, which has seen price falls of more than 50% in some areas from peaks on summer 2008, the property research firm said a total of 22,000 units were expected to be completed this year.

Its study of Q1 prices also saw a further 25,000 units coming online in 2011, bringing the total residential stock to about 320,000 by the end of 2011.

arabianbusiness.com

Dubai Property Prices Stabilized in 4Q 2009

2010-01-19T22:04:00.003+04:00

Prices of properties in Dubai was said to have stabilised in the last quarter of 2009 after a year of declines.

Property prices in the emirate rose quickly in 2008 as speculators bought and sold apartments in rapid succession, sending prices up by 43 per cent in the first three months. Those gains have since been erased. Overall house price values declined 42 per cent between the fourth quarter 2008 and the fourth quarter of 2009.

The average rate for residential property in the final quarter last year rose to Dh1,022 (US$278) per square foot compared with Dh1,016 in the third quarter.

The number of transactions declined 15 per cent in the last quarter compared with the previous three months, but the broker declined to disclose how many properties were bought and sold over the period.

While Dubai property prices rose 1 per cent in the last three months on the previous quarter, the increase masked a significant difference in the performance of apartments and houses. While house prices gained 10 per cent over the period, those for apartments fell 4 per cent.

The rapid drop in prices resulted in many investors falling into negative equity and forced some to flee the country to escape their debts.

While international banks estimate that bad home loans could run to billions of dollars in Dubai, lenders have held back from repossessing homes in default because of untested foreclosure processes. That may be starting to change after Barclays said last week it had won several of the first repossession cases to make their way through the Dubai courts. The legal significance of these rulings remains unclear because the country’s courts do not rely on precedents.

The Dubai World conglomerate announced in November that it was seeking a six-month freeze on debt repayments. It has since been in talks with about 90 creditors to restructure as much as $22 billion.

Dubai sheikh will invest $272m into Dubai's real estate

2010-01-07T02:28:00.002+04:00

Dubai International Holding Company, an investment firm owned by Sheikh Maktoum Hasher Maktoum Al Maktoum, is reported to have plans of investing AED1bn or $272 million in Dubai real estate in the first half of 2010.

"If you look at all the asset classes internationally, stock markets or anything else, right now the most depressed prices are for properties. We will be investing AED1bn in different projects across Dubai," Sheikh Maktoum told the paper.

Burj Dubai Renamed to Burj Khalifa

2010-01-04T21:48:00.002+04:00

Burj Khalifa is the new name for Burj Dubai, the world's tallest tower, which officially opened today, Jan. 4, 2010.
Burj Khalifa, which translates to the Khalifa Tower, is named after UAE President Khalifa Bin Zayed.
The renaming of the 828-meter structure came as a surprise for many, as it had always been referred to as Burj Dubai.
Dubai ruler Mohammed Bin Rashid inaugurated the tower in a ceremony this evening in Dubai.
Dubai has lived in an age of excess. Besides the Burj Khalifa, the spectacular Dubai Fountain can be found nearby in Dubai mall.

Property Developer Union Properties open for Government Support

2009-12-24T01:01:00.006+04:00

Property developer Union Properties is open to receiving business support Dubai Government but is not in need of some such immediate assistance, the company's new chairman told Emirates Business.

"The Dubai Government recently initiated the training to understand the business function of various real estate companies. And we too have indicated our business function to them," said Khalid bin Kalban.

"We have secured resource from Emirates NBD and have rescheduled our syndicated loan.

"We will be generating enough cash from next year to meet our obligations, but we are not averse to receiving some business assistance."

In November, Kalban said the company had secured Dh1 billion in resource from Emirates NBD to complete its Limestone House and Index projects in Dubai International Financial Centre.

Union Properties is 49 per cent owned by Emirates NBD, which in turn is 56 per cent owned by the government.

Kalban ruled out some talks on a integration with Deyaar Development, saying: "There was no show before the board of directors on some integration plans. However, we can't confirm or deny if field shareholders took up this issue."

In a statement sent to Dubai Financial Market yesterday, Deyaar said the company's board is not currently engaged in integration talks with some firm.

"We remain focused on exploring potential ontogeny opportunities in the UAE and another markets, including partnerships and investments," the company said.

In March, Markus Giebel, Chief Executive Officer, Deyaar Develop?ment, told this newspaper that Deyaar believes integration is "good in bad times" and may go forward if it does "good for shareholders and Dubai". He then himself had ruled out some integration discussions.

Earlier this month, Emaar Properties, which is 32.5 per cent owned by the Government of Dubai, dropped plans to go ahead with its integration with metropolis Holding's concept subsidiaries.

Source: Business 24/7

Dubai Real Estate | Dubai Property

Dubai World to present close deal in January says bankers

2009-12-22T10:05:00.003+04:00

Three bankers who attended a presentation regarding the Dubai crisis said that Dubai World module inform a standstill substance to banks in primeval Jan as the state owned retentive consort attempts to restructure about $22 billion of debt.

The bankers who refused to be identified due to the concealment of the meeting said that, Dubai World, which owns property organisation Nakheel, and private justness company Istithmar, told lenders that it needs time to allow its assets to better from the modify in value following the credit crunch.

DW global refinancing ‘costly’

2009-12-08T01:08:00.002+04:00

Without the support of the government to postpone the payment of debt of Dubai World and Nakheel, Abu Dhabi have yet to save for re-financing in international markets will be more costly or impossible, according to the report.

Products to the high cost of capital, will be with the growth in economic activity, it would be difficult in light of the prevailing global environment, "said Eckart Woertz, economics, program manager, Gulf Research Center, Dubai-based independent research institution, in a report entitled "Implications of Dubai's Debt Troubles '.

Confidence in Abu Dhabi in the ongoing process of restructuring and will come with an increase in compensation, the report said.

While the housing sector still in trouble, and can not fulfill their promises, and Dubai has achieved a critical mass at the center of regional trade can be counted on the force, "said Woertz.

Data on total consolidated debt and government-owned companies has not been published in the report of the Gulf Research Center, said he was relying on estimates, which range between $ 80 and $ 100 billion of debt.

A wide range of estimates reveal a great deal of doubt, in view of Dubai's gross domestic product of $ 82 billion, and religion represents approximately 200 to 100 percent of GDP, depending on the estimate.

Dubai World (DW) total liabilities of $ 59 billion widely mentioned. However, this figure refers to the liabilities, not only religion but also the contractor's invoices or land-grant unpaid, according to Deutsche Bank.

However, without details, dry, and finally specifically that more than 26 billion dollars of debt will be restructured.

With regard to the burden of public debt in Dubai, and two factors of concern: first, the entitlement to unpaid debt is short term. Over the next three years, 50 billion U.S. dollars of debt owed, $ 12 - $ 1 billion in 2010, and a staggering $ 25 billion dollars in 2011 alone.

Dubai will have to refinance their debt at a cost much higher, as markets have reduced the implicit assumption of the government, the report said.

Secondly, there is a large amount of bad debt, which are not backed by assets or the most profitable business models, according to the report. Moody's estimates that bad debt could reach $ 25 billion.

Impact on business in Dubai, and credit risk Apart from the problems in the Deutsche, and markets are wondering if the credit risk can be translated to other companies in Dubai.

Real estate companies were in the heart of the problems and debt and dry they have a greater need for restructuring.

While the Dubai Holding also made a presentation on Dubai's property market, and debt maturity extends to the year 2017, an urgent problem in the least compared to determine the payment schedule in the short term Dubai companies, on average.

However, the default swaps rose to credit (146%) of all entities in Dubai, immediately after the announcement of suspension of dry and should be considered the most vulnerable, due to foreign investments through the use of a subsidiary of Dubai International Capital.

Pressure on the Dubai real estate market will continue, especially in the less attractive, the report said.

Compared with the real estate sector in crisis, and companies with the current cash flow and create a more flexible business models, according to the report.

Real estate bubble in Dubai, which is also unique in the region - began many of the local population to copy, but later, he was lucky to be in late. There is certainly a statement of Gulf investors to invest in Dubai, but the right of the transmission of the debt crisis in Dubai is unlikely, because oil prices were fairly good about $ 75 dollars a barrel.

Dubai International Financial Center may be at a disadvantage. The financial sector is particularly affected by the global crisis, and the image of Dubai as a financial center has severely distorted the debt of a series of dry.

Impact on banks in the UAE is difficult to measure, because most of the exposure is likely to be in the form of bilateral loans that are not public domain.

National Bank of Abu Dhabi (Abu Dhabi National Bank) is the only bank in the UAE has made the official announcement about having a total of $ 5 million to Dubai World.

The role of Abu Dhabi and the increased centralization of the State of United Arab Emirates

Dubai in access to international capital markets has abated, you will have to rely increasingly on Abu Dhabi, in addition to the measures necessary for the restructuring.

Despite its support on several occasions earlier this year, Abu Dhabi, has been unwilling to lend a helping hand to dry and palm, for a moment.

An unnamed official from Abu Dhabi, told Reuters in Abu Dhabi, and Dubai to support "on a case by case basis" and that he will "choose" that the companies are compatible.

Support from Abu Dhabi to Dubai in the current financial crisis is a selective and non-conditional.

Abu Dhabi shows its willingness to practice tough love and restructuring of businesses in Dubai who are currently not possible or not in conformity with the plans of their own development in general and the UAE.

Although still committed to the bailout plan selectivity, which does not seem willing to pay the bill himself. It is ready to accept great risk to the reputation of Dubai UAE as a whole, and left Dubai walk the thin from debt restructuring and default, and make international investors and some of the burden.

Conclusion

The debt situation in Dubai requires a decisive restructuring, particularly in the housing sector in crisis, and the report said the Gulf Research Center.

Compared with other countries in the Middle East, Dubai has a competitive advantage in terms of infrastructure, lifestyle and business facilitation. It also has a role to play successfully as a center for regional trade, provided that they can escape from the abundance of the past.

Oil revenue in Dubai, and the impact of financial crisis, and the financing of development efforts based on more than the United Arab Emirates Abu Dhabi in the past, Woertz said in the report.

Ambitious development goals of the State, and its willingness to play a more visible role in international affairs, and requires a more centralized planning and institutional development.

Instead of seeking to buy stocks is rumored study, Abu Dhabi, perhaps in an attempt to reach a consensus to increase the concentration of responsibilities in the federal financial support for continuing to Dubai and other emirates, the report concluded.

Is Dubai the first domino in a second financial crisis?

2009-11-28T04:06:00.000+04:00

While Iceland’s transformation from fishing nation to financial powerhouse – and back – became a potent symbol of the banking boom and bust of the past few years, the Middle Eastern emirate of Dubai was where the global property bubble was taken to its glitziest extreme.

Without the oil reserves of many of their neighbours, Dubai’s rulers hatched a hubristic plan to turn their city-state in the sand into a glamorous playground for the rich, enthusiastically bankrolled by western investors.

Now, with the state-owned builder of many of Dubai’s most extravagant projects struggling to repay its debts, the world’s financial markets have been forced to wake up to the idea that they may have declared an end to the turmoil of the credit crunch too soon.

Stock markets have soared over the past eight months as investors shrugged off fears that the near-death experience of the world’s financial system when Wall Street bank Lehman Brothers collapsed in October 2008 would lead to a 21st-century great depression. But Dubai’s woes this week were a sharp reminder that there may be plenty more unexploded bombs hidden in the world economy. First, Dubai’s authorities are not alone – a string of other states, including Greece, Ukraine and Ireland, face severe debt problems in the months and years ahead as they tackle the costs of the worst recession in a generation at the same time as clearing up the debris from a rampant credit boom.

The International Monetary Fund has already stepped in to bail out several struggling states, including Iceland, Hungary and Pakistan, but Dubai World’s announcement raised the fear of a new wave of victims emerging.

Second, the economic slump is not over. While many major economies, including the US, Germany and Japan, have come out of recession, recovery has so far been aided by vast emergency infusions of taxpayers’ cash. No one is sure what will happen when those life-support measures are removed next year and central banks begin to shut off low-cost lifelines to banks and raise interest rates.

And third, if Dubai World does default, it will send fresh shockwaves through the world’s financial system. International banks – including the UK’s – have lent Dubai and its firms billions of dollars to fund its glittering glass towers and indoor ski slopes in the desert. The risk that many of those loans may now go sour has reawakened nagging concerns that even after government-backed rescue packages worth trillions of dollars, the worst may not be over for the bombed-out banks. Germany’s Bundesbank warned earlier this week that its banks may face a further €90bn in writedowns on bad loans before the crisis is over.

Uncertainty about whether Dubai World would actually be forced to default, and how much of their money lenders would get back, were exacerbated by the fact that financial markets in Dubai were closed for the Muslim festival of Eid al-Adha. To complicate matters further, the debts were taken out as Islamic bonds, known as sukuks, and the rules about what happens if the borrower fails to pay them back are hazy.

Investors hope Dubai will be bailed out by neighbouring Abu Dhabi, the United Arab Emirates capital – though it is not clear what that might mean for the autonomy of Dubai’s ruler, Sheikh Mohammed Bin Rashid al-Maktoum, famous for breeding and racing thoroughbred horses, and for his £10bn fortune.

But whether Dubai is the first domino to fall in a new wave of the global financial crisis or, as some commentators argued today, just a small city-state whose struggles have few implications for the rest of the world, its frozen cranes, empty skyscrapers and bankrupt expatriates are a powerful parable of what happens when a property boom gets badly out of control.

Dubai’s romantic past as a sleepy fishing and pearling port has all but gone and nowadays the wooden abras that ferry passengers across its famous creek are dwarfed by banks and investment companies. The richest and most populous of the seven states of the United Arab Emirates, it has an economy second in size only to regional giant Saudi Arabia.

Footballers and film stars have sprinkled stardust on its arid landscape, buying up villas on exclusive developments such as the extraordinary Palm Jumeirah, a lagoon of man-made islands surrounded by an azure sea. Owners there include David Beckham and a clutch of Premier League stars, Afghan president Hamid Karzai, Russian oligarchs, many rich Indians and some well-connected Iranians.

Leisure opportunities in the “Paris of the Middle East” include some of the biggest and busiest shopping malls on the planet. Westerners enjoy a far freer lifestyle than elsewhere in the Gulf, though the recent experience of the British couple caught having sex was a reminder that there are still cultural taboos to be observed.

Parts of the city have a distinctly subcontinental feel that recalls the old joke about the UAE: “Emirates stands for English-Managed, Indian-Run, Arabs Taking Enormous Salaries.”

In the good years, the cash poured in, spilling over from the oil-rich states of the Middle East, as sky-high oil prices and strong global growth created windfalls for many of its Gulf neighbours, and from the frenzied deal-making in the international financial markets.

The scale of the resulting building boom was extraordinary, sucking in hundreds of thousands of poorly-paid foreign workers and sending property prices in the desert playground sky-high. Long after the sub-prime crisis began in the United States and spread to much of the rest of the world, the emirate responded with its trademark self-confidence – reckless over-confidence to its critics. It was just over a year ago, as the global financial shadows began to lengthen, that Sultan Ahmed Bin Sulayem, the DW chairman, boasted: “Dubai has a vision like no other place on Earth.”

The claim came as Nakheel, the DW property arm, unveiled plans to build the world’s tallest tower, with more than 200 floors – beating its nearest rival, the existing Burj Dubai tower, still under construction and due to open next January.

Nakheel, represented by a slick international PR team, was quick to brush aside fears that the emirate would be infected by the coming recession, insisting that fundamentals remained sound and that returns from overseas investment funds would perform better than oil revenues.

So instead of retreat, Dubai carried on partying. And some even saw a silver lining in the gathering clouds, predicting that leaner times for Dubai would reduce the number of expatriates and help re-establish a sense of national identity.

“We have been bombarded with the tallest, the best, the largest, for the past few years,” said Professor Abdelkhaleq Abdullah of Emirates University. “The novelty has gone.”

But over the past year it has become increasingly clear that the party is over: property prices have fallen by 40-50% from 2007-08 highs and are expected to slide by another 20%. Unemployed Indian workers have left in their tens of thousands while stories of expensive new cars abandoned at the airport by bankrupt foreigners have become the stuff of folklore.

Many high-profile celebrities have holiday homes in Dubai. The actors Brad Pitt and Denzel Washington as well as the supermodel Naomi Cambell (below), are all rumoured to own properties on Dubai’s super-exclusive Palm Jumeirah, one of the three constructed Palm Islands in the Persian Gulf.

The developer behind the Palm Jumeirah scheme is Nakheel, whose parent company is Dubai World.

Residents saw their investments collapse this year as Dubai’s property bubble burst and now they could be fearing their properties will be devalued yet further.

Investors are also concerned that Nakheel will not be able to afford to finish work on Palm Jumeirah and its other projects, which will leave a lot of Dubai resembling a building site.

A number of footballers have invested in the area. David Beckham, Michael Owen, David James and Kieron Dyer have reportedly got homes there. The Chelsea and England player Joe Cole had a villa but he sold his property for about $3.5m in the summer, just before Dubai’s property bubble burst.This will also be bad news for a number of UK engineering consultants who are owed money in Dubai. Nelson Ogunshakin, head of the Association of Consulting Engineers (ACE) says UK engineers working in the UAE are owed around £250m.

Banks have also invested heavily in the area. According to the Emirates Bank Association, HSBC has $17bn invested in UAE, Standard Chartered has $7.8bn, Barclays has $3.6bn and has . RBS $2.2bn. Citigroup also has $1.9bn in the UAE whilst BNP Paribas $1.7bn and Lloyds has $1.6bn.

———-

big fall out from this felt all over the world..if dubai is in trouble who else is hiding something?

http://www.guardian.co.uk/world/2009/nov/26/dubai-first-domino-new-crash

Tasweek acquires Liberty House commercial property in Dubai

2009-11-23T21:41:00.002+04:00

42-storey mixed-use office and apartment structure prime commercial property Liberty House within the Dubai International Financial Centre (DIFC) was acquired by Tasweek Real Estate Development and Marketing.

According to a press release, the transaction is part of Tasweek's USD 250 million buildup of a real estate investment portfolio featuring key Dubai and Abu Dhabi projects within the next 18 months.

"Strategic acquisitions such as the Liberty House commercial property allow us to position ourselves advantageously as the local property sector proceeds with its market stabilization initiatives. Given today's tight business environments, more companies are searching for strategic locations that enhance their visibility, access to key markets and logistical capabilities. Liberty House is a perfect beginning for our new portfolio and a welcome addition to our overall long-term investment plans," said Tasweek CEO, Masood Al Awar.

Under the deal with Dubai real estate developer ETA Star, the commercial property represents a long-term investment into DIFC, which leverages the UAE's strategic location near the booming Asian and European markets and the Centre's proximity to key Dubai developments such as the Metro Station, Emirates Towers and Burj Dubai. Liberty House consists of eight floors of spacious open plan offices and 29 floors of luxurious apartments.

"Future Liberty House clients can avail of DIFC's various business-friendly incentives, such as freehold ownership of offices and residences, 100 percent foreign ownership of businesses, an internationally qualified financial regulatory environment, zero-rate tax, and unrestricted repatriation of capital and profits. Since opening in 2004, DIFC has generated considerable demand from firms searching for quality offices situated near Sheikh Zayed Road," he added.

Tasweek is scouting strategic location properties in Reem Island, Al Raha Beach, and Building Material City in Abu Dhabi and Dubai Marina, Jumeirah Beach Residence and Dubai International Financial Centre (DIFC) in Dubai for its new multi-million dollar property portfolio. The upcoming acquisitions are expected to generate a return on investment of at least 10 percent.

Emaar will cancel 13 towers in Downtown Burj

2009-10-19T13:02:00.002+04:00

DUBAI - Emaar Properties, the Dubai company behind the world’s tallest tower, may cancel 13 high-rise buildings it planned to have in its Downtown Burj Dubai development after the economic downturn drained demand for homes, UAE daily the National reported on Monday.

Investors who had made down payments to buy into the planned towers have agreed to use their funds to buy Emaar’s properties, the newspaper reported citing brokers.

“The Emaar consolidation now is almost over… All the big amounts are gone now (on these 13 towers),” said Hakan Goksel Samur, chief executive of Dubai Emlak Consultancy that had brokered several deals.

The global recession has sent Dubai’s once-booming property sector crashing, forcing developers to scrap or delay projects due to a lack of funds. Buyers have also become scarce.

Some large developers have been able to provide alternative properties to buyers of projects that have been cancelled or delayed.

But not all buyers are happy with such options, saying the alternatives are either expensive or do not match their requirements.

Source: Maktoob Business

Dubai rents fell by 30% in August

2009-08-24T23:50:00.006+04:00

Residential rents in Dubai fell by up to 30 per cent in August, a real estate consultancy said yesterday, while it believed the marginal rent increases in certain pockets of the emirate were "unsustainable".

The maximum rental decline was seen in two-bedroom apartments in Palm Juemeirah, which fell 30 per cent in August. Two-bedroom apartments for rent in Jumeirah Lake Towers (Jlt, International City and Jumeirah Beach Residence decreased by 23 per cent, 17 per cent and 16 per cent, respectively. In the one-bedroom category, International City saw the maximum fall of 22 per cent, followed by Palm Jumeirah and JLT, declining 20 per cent and 19 per cent, respectively, Landmark Advisory said in its August 2009 Price Guide.

Four and three-bedroom villas in Mirdif fell 31 per cent and 26 per cent, respectively. The current market rents for a four-bed villa stand at Dh140,000 per annum in August compared to Dh202,500 in March, while for the latter it is Dh155,000 from Dh115,000.

"Demand for property was particularly strong during June and July due to a significant amount of rental contracts ending around this timeframe. The large amount of rents ending during the same period ultimately creates a temporary supply distortion following a period of particularly strong demand," said Charles Neil, Chief Executive Officer, Landmark Advisory.

He added: "The increasing rents can be attributed to a lack of supply – many landlords have removed inventory from the market to avoid renting out at current market rates, while others may be out of town during the summer period and consequently unavailable. We predict the month of Ramadan will also affect the leasing supply as many landlords are waiting until fourth quarter to reassess the market. "

Less than half of the 22,400 units have been delivered in Dubai by mid-year, Craig Plumb, Head of Research at Jones Lang LaSalle Mena had told Emirates Business. Earlier, JP Morgan estimated Dubai will have an excess of 31,000 units in 2009.

Rents in many areas of Dubai have decreased significantly over the past five months, but despite this, there are "exceptions" to this trend with some unit types in preferred developments performing well.

Apartments tuality in Dubai Marina have increased by 11 per cent for one-bedroom units and by six per cent for two-bedroom units, while three and four-bedroom villas for rent in Arabian Ranches and three-bedroom villas for rent in Palm Jumeirah returned to March 2009 rents or have increased marginally.

"Although there is rising rents for one and two-bedroom apartments in Dubai Marina, the rents for studios and larger three and four-bedrooms apartments have declined. These rental trends are, of course, highly correlated with emerging demand patterns. Preferred areas and unit types will be the first to recover in terms of rents. Tracking these specific units over the past five months indicates that rents in these areas are sustainable.

"These findings are in line with our third quarter Dubai and Abu Dhabi research report, which showed that one and two-bedroom apartments and three and four-bedroom villas were the most sought after unit types in the leasing market," Neil said.

According to Landmark research, relocation demand is continuing to drive the leasing market with demand still coming from Abu Dhabi and Sharjah as well as from within Dubai. A continued upgrading trend is also evident with location, quality and size being the key factors for relocation demand.

Most residential areas in Dubai are subject to further fluctuation, especially as new supply comes onto the market in the next 12-24 months, the consultancy said.

"If rents do come down further for these areas then we expect additional relocation demand as long as landlords adapt pricing strategies. Of course, this relocation demand will help to mitigate any further rental declines," said Neil.

According to Jones Lang LaSalle, rents have declined by 15 per cent in Q2 compared to Q1 and "will fall further" in the third quarter.

Dubai property values cut in half

2009-08-03T20:08:00.001+04:00

House prices in former central Dubai tumbled in the second quarter as the market in the Gulf emirate continues to reel from the global economic downturn, a UAE-based consultancy said on Monday.

Colliers International's Dubai House Price Index slumped 48 per cent in the three months to the end of June from the same period in 2008 on concerns over financing, expatriate job security and lack of transparency on project delays.

However, the rate of decline eased to 9 per cent in the second quarter compared with a 42-per cent plunge in the first quarter, according to Colliers.

The average price rate for residential property fell to 10,215 dirhams ($A3330) per square metre in the second quarter from 11,162 dirhams ($A3639) per metre square in the first quarter.

It gave no directly comparable figures for the second quarter of 2008.

"In the coming months, the market will be searching for further evidence of market stabilisation as we draw nearer to the bottom of the market prices," said Ian Albert, regional director at Colliers.

The index is compiled using mortgage data from financial institutions representing 60 per cent of the mortgage market in Dubai and analyses the trends for prices for both completed and under-construction properties.

Source: The Age

Properties for rent have come down

2009-07-16T10:44:00.003+04:00

A report in today's newspaper regarding Villas apartments for rent in Dubai has come down. I agree that rents in International City decreases as one of my friend just transferred to a Spain Community from China District.

Here is the report from Gulf News.

Dubai: Rents for villas and flats in Dubai have decreased by an average of 24 per cent and 21 per cent respectively between the April and June.

However property rates in Palm Jumeirah have gone up by 20 per cent.

These figures are according to a published report by Asteco, a property services firm. It follows another study that showed rents in Abu Dhabi falling by 35 per cent.

According to Andrew Chambers, the managing director of Asteco, one of the main reasons for the decrease in rents in Dubai and Abu Dhabi is the current trend - of people working in Abu Dhabi opting to relocate to Dubai.

Chambers said that people are currently comparing rents and facilities provided by landlords then deciding where to stay.

The cheapest area to stay in a one-bedroom flat, according to the report is Dubai’s International City were rents fell by 21 per cent in the last three months to Dh 40,000 per year.

Palm Jumeriah continues to remain the most expensive as tenants are expected to pay Dh100,000.

Downtown Burj Dubai is the most expensive to rent a three-bedroom villa - those could come for Dh265,000 annually. Mirdiff is reported to be the cheapest area at Dh107,000 annually.

Large 2 Bedroom Garden Apartment in Uptown Mirdiff for Rent

2009-06-30T14:12:00.003+04:00

A large 2 bedroom apartment in Uptown Mirdiff for rent. A new development near the airport and within close proximity of all the shops of the Uptown Area. Rental Price: AED 105,1000.00

Please Contact: Provident Estate
Tel: 04-3233609
E-mail:david@providentestate.com

info@providentestate.com
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Please visit our Website for more properties for rent in Dubai

Oversupply in Dubai residential market expected to keep real estate rents low

2009-06-26T14:56:00.002+04:00

Property rents in Dubai are expected to continue falling this year with the oversupplied residential apartment sector likely to see the steepest falls.

The third quarter will see further falls but it is hoped that prices will stabilise after that, according to the latest report from real estate consultants Landmark Advisory.

There is also hope that the sales market is stabilising. Distressed sales opportunities are largely finished, as sellers refuse to lower existing prices, the report claims.

In some cases, buyers are paying increased rates for sought-after residential developments with limited homes available, according to the transaction-based reference map.

'Smaller villa developments with a limited supply that have tapped into sufficient value recognition among end-users with regards to location, layout, build quality and amenities/facilities are among those residential developments experiencing price increases,' said Jesse Downs, director of research at Landmark Advisory.

Landmark said apartments had experienced a steeper fall in rental and sales prices than villas, and that this would continue to be the case.

The combination of the economic downturn and the completion of a large number of high rise apartments last year have resulted in an oversupply in that segment, the report said.

Meanwhile rents in Qatar are expected to rise over the next year as units from the $14 billion real estate The Pearl hit the market and fuel demand. Properties in Qatar are also expected to hold their value well compared to other GCC countries, according to property broker LifeStyle Homes.

'While the initial panic created by the economic crisis led to selling of some properties, the value of high quality projects in Qatar are expected to remain higher as opposed to the rest of the GCC countries,' a spokesman said.

Dubai Property Rental | Properties for Rent Dubai

Luxurious 6 Bedroom Villa in Al Barari

2009-06-21T13:02:00.005+04:00

Fore sale spacious 6-bedroom villa is an Acacia Type A - inside and out it is a breathtaking sight.This flat-roofed villa is throwback on traditional Arabian luxury chalets; this has attached swimming pools, private gardens & water features.

This villa is exclusively listed with Provident Estate, a Dubai Property Agents. And you cannot find anywhere, not even with the Developer.

Master Development:	Al Barari
Project:	Acacia Villa - Al Barari
Property Type:	Villa
No. of bedrooms:	6
No. of bathrooms:	6
Size of Property:	12,180 sq.ft.
No. of Storeys:	G+3
Plot Size:	16,404 sq.ft.
Completion Date:	June 2009

For more information, visit Al Barari.

Dubai Property for Sale | Dubai Property for Rent

Demand picking up for Dubai Property

2009-06-21T08:28:00.002+04:00

Prices of apartments in master developments such as Dubai Silicon Oasis, International City and Discovery Gardens have stabilised in the past three months, making them "affordable" for middle income earners in the emirate, according to real estate agents.

"The most affordable areas in the emirate are Dubai Silicon Oasis, International City and Discovery Gardens, where prices have levelled off in the past three months," said Vineet Kumar, Head of Sales-Dubai, Asteco Property Management.

According to Gowealthy. com, apartments in affordable housing projects have recorded a marginal drop of about five to 10 per cent in the past quarter. In International City prices for a studio, one-bedroom and two-bedroom apartments were about Dh290,000, Dh475,000 and Dh578,000, respectively, during the first quarter of 2009. The current prices for these properties stand at Dh275,000, Dh450,000 and Dh550,000, respectively, reflecting a decline of roughly five per cent since the past quarter, said Parvees Gafur, Executive Vice-President for International Sales, Gowealthy.com.

Prices stabilising

Mohanad Alwadiya, Director, Harbor Real Estate, said prices in affordable housing are now stabilising but there is an increasing demand.

"In Motor City, the residential apartment prices were about Dh900 a square foot in the second quarter of 2008 and is now about Dh600 per square foot. In International City, the average price per square foot has dropped from Dh830 in the second quarter of 2008 to Dh600 in the second quarter of 2009. In Discovery Gardens prices were Dh1,050 per square foot in the second quarter of 2008 and are now about Dh650 per square foot," he added.

From a rental perspective, Rose-Marie Kilzi, Leasing and Resale Director at Great Properties, said Discovery Gardens, International City and Springs villas continue to offer the cheapest rental rates in Dubai.

"A one-bedroom apartment in Discovery Gardens is currently in the range of Dh55,000 to Dh65,000 per annum. For a two-bedroom villa, the Springs is the cheapest rental property going for Dh100,000 per annum upwards. The rents have stabilised over the past three months," she said.

According to realtors, mortgages are easier to find for affordable housing units with banks generally lending at around 75 to 80 per cent loan-to-value ratio (LTV).

Alwadiya said most banks are offering mortgages on finished properties or those that will be ready within the next 45 days. The LTV ratio is still hovering around 75 per cent on average at an interest rate ranging between nine to 11 per cent, he said.

"Some banks are even offering mortgages on some off-plan projects," he added.

Asteco said mortgage availability on finished properties hovered around 75 to 80 per cent of the assessed value of the property.

"Four banks are very actively providing mortgages including HSBC, Abu Dhabi Commercial Bank, Dubai Islamic Bank and RakBank," said Kumar.

No oversupply risk

Analysts said people with incomes starting from Dh20,000 per month upwards were able to buy affordable housing in Dubai. They all said there was no risk of affordable housing becoming oversupplied in the market due to demand not yet picking up very strongly and the fact that a number of properties are yet to come into the market.

Kumar said: "Affordable housing supply is limited. The market has more projects on going, which are mid-market to luxury. The only affordable projects built so far are International City and Discovery Gardens. What has happened with the correction is that a lot of the finished projects have now become affordable and end users are taking advantage of this correction."

Alwadiya said: "We are witnessing an earlier than expected recovery signs in the market today that will help enhance and boost the demand on property. Affordable projects will benefit first and most during the early recovery stages, which will ease the pressure on the supply of such projects."

Gafur believes supplies are not pouring into the market as expected or predicted earlier last year.

Also, considering existing units and their expected delivery dates, it is still not enough to meet the entire demand for affordable housing from both a sales and rental perspective.

"Current demand levels may seem a bit lean due to various factors such as summer holidays, price drop expectations etc. But the latent demand for affordable housing is still quite strong and it is just a matter of time and initiation of positive factors such as increased lending before the demand levels show a visible upward trend again," he added.

Demand picking up

According to agents, demand for affordable projects is picking up as buyers are continually seeking to take advantage of the low prices.

"Demand on affordable residential assets is exceeding demand on affordable offices. This is mainly driven by the fact that the number of ready affordable residential projects exceeds the number of ready affordable office projects today," said Alwadiya.

Kumar said the demand for affordable residential units was higher than affordable commercial properties in Dubai.

"Demand is for locations that are established in terms of infrastructure and buyers prefer to be closer to such areas. It is difficult to put a number but the market sentiment is high for affordable housing projects," he added.

Since affordable housing developments have so far been attracting bachelors/ single families, the developments are not fully equipped with community facilities and amenities, said Gafur.

"The developments are not fully geared to provide all the support elements such as groceries and other shops. Once these services are up and running fully, a wider and general audience will consider buying into these properties and drive demand levels much further."

No major defaults

Analysts said there were no defaults arising in the affordable housing sector.

Alwadiya said: "The rate of influx of population to the emirate still exceeds the rate of departures and if we examine the profiles of the inflowing and outflowing population, we will notice that most of the departures were from the blue collar population who were forced to leave because of the slowdown in the construction sector. On the other hand, the influx has been fuelled by white collar or investor population."

Gafur said: "We have not noticed major defaults on payments across the affordable housing sector mainly because the developers have started to adopt flexible payment schedules."

"The initial panic mode that did prompt a few from even the affordable housing sector to relinquish their investments has stopped now. Current defaults are few and far between, with buyers understanding the medium- to long-term positive ramifications of property investments. Investors and homeowners having repayment-related issues also have the option to work out relaxed payment plans through developers or mortgage providers, thereby reducing default risk even further."

According to Kumar, in the early days of freehold property, the affordable real estate was bought mostly by investors who retained it for rental return or capital appreciation.

"Even though rents have corrected, first buyers of these projects enjoy a fair return on their investment. These products are always preferred by investors as well as end users and now that the market has been regulated, more end users will come forward to buy affordable housing projects," he said.

Kilzi said buyers of affordable units are the ones most affected by the economic crisis as they were the ones intending on staying long-term and relying on their monthly income to cover their mortgage.

Careful with agreements

Analysts said the current economic crisis has taught buyers to become more careful when it comes to reviewing their sales and purchase agreements.

"Compared to the earlier days of property sales, sales and purchase agreements have come a long way in terms of transparency. Reputed developers providing housing solutions within both the affordable and high-end sectors have placed a lot of emphasis on their sales and purchase agreement documentation policies, especially since the emergence of local authorities such as the Real Estate Regulatory Agency. There are further improvements that still need to be made in order to achieve the effectiveness and transparencies seen in the developed markets. That will happen as the market evolves and grows, and there are many instances of this taking place currently," said Gafur.

Kilzi added: "Most real estate developers have become aware of the market situation today and have learned that transparency is the best policy. With many having to agree to lower prices and give discounts and compensations to prevent people from defaulting, it is more apparent recently that transparency in communication as well as in purchase agreements has become a critical need."

Banks lending more to property buyers in UAE

2009-06-20T15:17:00.001+04:00

Mortgage lending in Dubai appears to be increasing amid growing confidence in the real estate sector that better liquidity will see a recovery by the end of the year.

Noor Islamic Bank reported that its mortgage business is 40 to 50% up on the start of the year. Dubai Islamic Bank has announced it would offer 90% financing on properties in the United Arab Emirates.

'Things have improved from last year, it's a stable situation. The market has improved,' said Fahd Reaz senior product manager in personal and home finance for Noor Islamic Bank.

Anecdotal evidence has shown over the last three months that liquidity is returning to the banking system. In March HSBC increased its loan to value ratios to 75% and 70% on villas and apartments.

But there is still some reluctance to lend to off-plan properties. Reaz admitted the bank was 'apprehensive' about lending to buyers of off-plan properties, which some suggest has fallen up to 50% in Dubai in the wake of the global crisis.

Charles Neil, chief financial officer at Dubai-based broker Landmark Properties, said 30% of the group's total transactions were mortgage financed in May this year, compared to just 17% between January and April.

Neil said it was critical for mortgage availability to increase otherwise prices could continue to fall hurting the UAE property market further. But he predicted no substantial increase in home loan financing in the next two years and predicted house prices would not rise before 2011.

Dubai Islamic Bank is also offering re-financing solutions for properties that are already completed.

'Property buyers in the UAE are seeking easy home financing solutions. At DIB, customers are our top priority and we are pleased to open new doors for them by offering up to 90% finance,' said Adnan Chilwan, Chief of Retail and Business Banking, DIB.

Real estate shortage expected in 2012

2009-06-19T23:56:00.002+04:00

The year 2012 will see a shortage in real estate in Dubai, despite reports suggesting an 8% population decrease this year, according to a top finance officer.

Speaking to Construction Week, Landmark Properties chief financial officer Charles Neil said the real estate market can expect a rise and fall in the supply of properties in the next few years.

“At the moment there is a bit of an oversupply [of properties] because we estimate about 20,000 properties coming onto the market this year and another 20,000 next year,” he said.

“But, there will be very few units coming into the market after that because of a lot of projects have started but have been put on hold.”

Recent news reports contradict this argument and have suggested there will be a decline in population this year.

Furthermore, in April, a panel of construction experts including Emaar called for measures to halt the decline.

However, a new survey from Investment Boutique suggests that the question over population decline is unclear.

“One of the most pressing questions raised recently has been the question of whether the population of Dubai will continue to grow at break neck speed, simply slow down, or begin to decline,” the report said. “This question remains paramount because without expatriate growth, economic activity will decline causing a ripple effect that negatively impacts the property sector. “

But Neil said that this decrease is not affecting the current market. He said, due to the drop in property prices, more and more expatriates and nationals are living in Dubai now and commuting to their jobs elsewhere.

This could ultimately mean an undersupply of properties in the next few years, due to a drop in active construction, he said.

“We are [currently] finding that properties are still selling very quickly and if you want to rent a place they are not available for long. We are also seeing people from Abu Dhabi coming to live here,” he said. “But, come 2012 the market can expect to see a shortage in property supply.”

Source: Constructionweekonline

Dubai Property for Rent | Dubai Property Rentals

Property Prices In The Emirates On The Rise

2009-06-18T17:17:00.001+04:00

Those with property investment interests in the UAE may welcome research from HSBC which shows that property prices are rising in the emirates.
The new Property Ladder study shows that there has been a marked growth in the UAE property sector, in part spurred by a relaxation of maximum loan-to-value (LTV) rates that have allowed more people to get on the housing ladder.

“Anecdotal evidence also suggests that foreign investors seem to be back in the market and there are bulk buyers of property for investment purposes,” the report claimed.

Cash has continued to be the dominant force in UAE property sales, although mortgages are gaining ground and are becoming an important part of the market, the study goes on to state.

In March, HSBC announced that it would be relaxing its lending criteria for those looking to buy Dubai properties and elsewhere in the UAE, with the company now offering an LTV rate of up to 75 per cent on villas, 70 per cent on completed apartments and 50 per cent on off-plan property.Your browser may not support display of this image.

The recent opening of prestigious estate agency and property management firm Hamptons International in Abu Dhabi confirms the evidence of increased foreign investment interests. Recent ‘roadshows’ held by Hamptons in Abu Dhabi and Dubai attracted a number of UAE property development agencies, seeking to boost the healthiness of the region’s property market.

Speaking at the Cityscape Connect business breakfast, UAE real estate specialists including the chief executive of Dubai-based property agency Asteco, Elaine Jones and Steven Henderson, partner in legal firm Clifford Chance, concurred that the prospects for strong growth were becoming evident.

“Industry sentiment has moved into positive territory and it is equally important that Cityscape through the Connect series of events continues to provide a platform for open debate,” said Rohan Marwaha, managing director of the company.

Dubai Real Estate | Dubai Property

Dubai 'set for a comeback'

2009-06-03T20:29:00.002+04:00

Dubai is set to bounce back from its recent property market dip because it still offers the infrastructure to attract investors, it has been stated.

Organiser of the Worldwide Property Show Mike Bridge said of the emirate: "Dubai is very much seen as a good place to live offshore," commenting that people from the UK may look to move there to avoid higher taxes being raised to pay for pensions.

He noted that factors such as the infrastructure, weather and high quality hotels are "not going to disappear" and that these will help draw back buyers.

Mr Bridge stated that there has been a recent upsurge in buying in the emirate, following a period of downturn when things were "pretty quiet".

Figures from HSBC have shown that Dubai property prices rose by four per cent in April and five per cent in May, while in Abu Dhabi saw a two per cent jump in April and a seven per cent increase last month.

Dubai Real Estate | Dubai Property

Source: PropertyShowrooms.com

Dubai property rents plummet: study

2009-05-17T00:22:00.002+04:00

Dubai rents have fallen sharply in the last two months, with going rates for some real estate ranging from basic studios to luxury flats on the man-made Palm Jumeirah falling by almost a third, a property consultancy said.

Landmark Advisory said rents have fallen as much as 50 per cent in some areas since peaking late last year, with average declines of 10 to 30 per cent depending on the neighbourhood.

Between March and May, rents on studio flats in Dubai Marina, an upmarket district dominated by white-collar workers, fell 23 to 28 per cent to between Dh40,000 ($10,890) and Dh65,000 per year, data from Landmark showed.

Property rents in Dubai doubled or more during a building boom that came to an end late last year after the financial crisis hit.

"We expect an additional dip in the summer with the anticipated departure of groups of Dubai residents," Jesse Downs, Landmarkís director of research and advisory services, said late on Wednesday. ìWeíre definitely seeing more supply coming online and a population declining in Dubai."

A Marina studio now costs $907-$1,475 a month, down from $1,180-$2,043 a month in March.

Dubai Marina rents have fallen an average of 23 per cent from the third quarter to the end of April, while in nearby Jumeirah Beach Residence, prices have declined 19 per cent, Downs said.

Renting a two-bedroom flat on the Palm Jumeirah, an island shaped like a palm frond and visible from space, was 14 to 33 per cent cheaper in May than it was in March. That puts annual rent at between Dh120,000 and Dh175,000, or $2,723-$3,972 a month in May compared with $3,178-$5,901 in March. Renting a one bedroom flat in the Greens, a medium-income housing complex, also fell 25 per cent to a lowest price of $1,362 per month, Landmark said.

Downturn reshapes Dubai’s property landscape

2009-05-10T11:36:00.000+04:00

There is a two-bedroom apartment on the 25th floor of Jumeirah Beach Residence with an excellent view of Dubai’s property market; where it has been and where it is heading.

In February, the apartment’s British owner sold it for Dh1.5 million (US$408,000) to a compatriot, reaping a Dh680,000 profit on what he had paid for it less than two years earlier – a return equal to 44 per cent a year.

Then in mid-March, as the global economic crisis raged on, the apartment’s new owner decided to sell it for a little more than Dh1.43m to a Russian buyer, escaping with a loss of about Dh66,000. That works out equal to a loss of 42 per cent a year.
Since peaking last September, property prices in Dubai have dived, according to data from Reidin.com, a Dubai-based company that has compiled an online database of every property transaction registered with the Dubai Land Department since 1973.

An analysis by The National of the more than 24,000 transactions registered in the past two years reveals that the average property price in Dubai has tumbled about 33 per cent from its peak last September, with prices in the first quarter slipping 11 per cent since the start of this year.

But prices in the first three months of this year were still 12 per cent higher – not lower – than they were in the same quarter last year.

“That is a surprise,” says Ryan Mahoney, the managing director at the Dubai property agency Better Homes.

Mr Mahoney and other property experts predict prices will keep falling for at least the next three months before finding their footing.

In the meantime, they say, the property market is diverging. Where once investors were willing to buy from blueprints, the emphasis now is on finished properties that offer high-quality, affordability and a convenient location close to amenities such as cafes, restaurants and shopping.

As the market has shifted, Mr Mahoney says, buyers are thinking less about whether a property will earn quick profits and instead asking themselves how much they might enjoy living there.

How they answer will reshape the future of the country’s property industry. In the meantime, the continuing slump has troubling implications for the economy. Property and construction still account for about 15 per cent of the nation’s economy and represent the largest source of jobs.

Yet lenders such as the mortgage company Amlak Finance predict more defaults as job losses mount and property prices fall, a trend that will put further pressure on the country’s banks.

Some foresee a vicious circle of layoffs, expatriate departures, slower economic growth and falling property prices.

“We will see a slowdown or contraction in a number of economic sectors, most notably in real estate and construction as projects are cancelled or put on hold,” Monica Malik, an economist with EFG-Hermes, wrote in a March report that forecast a 30 per cent decline in Dubai’s population of construction workers. “The fall in population will further result in weaker demand for housing.”

The Reidin.com statistics are not perfect. Analysts note that the data is only as reliable as the human beings at the Land Department whose job it is to input data on each transaction.

And since registration of property became mandatory in November, the department’s employees have apparently been inundated with owners rushing to register deals dating back as far as 1997. In March alone, the land department registered more than 500 deals that took place before 2007.

The data also probably fail to fully capture the frenzy last year in off-plan sales, in which buyers made down-payments to developers for property still under construction.

If the value of the property fell below their purchase price, many probably walked away from their deals, never bothering to register them.

Nevertheless, the data provide what is probably the most comprehensive look yet at trends in Dubai’s property market. According to Reidin.com’s data, the property craze peaked in April last year as prices were rising at a rate of 43 per cent a year.

Prices continued to rise until September, even as the number of deals dwindled.

Then, after rising 37 per cent in the third quarter from the previous quarter to Dh1,106 a square foot (sq ft), property prices dropped, losing 15 per cent in the fourth quarter and another 11 per cent in the first quarter to an average of Dh839 a sq ft.

The numbers look even worse when adjusted for inflation. The latest official estimate of inflation, from March of last year, is 11.5 per cent. In real terms, then, property prices managed to eke out a 0.5 per cent gain over the past year.

To gain some comparison, Dubai residential prices in February dropped by 7 per cent in inflation-adjusted terms. In the US, home prices fell by almost 19 per cent.

One of the market’s vulnerabilities, property executives say, is that it is driven primarily by foreign buyers and is therefore even more susceptible than others to global economic trends.

One of Dubai’s primary sources of demand, for example, has in recent years come from increasingly affluent Indians. But in September, Indians became net sellers of Dubai property.

That is when panic seized the market, executives said, as widespread predictions of Dubai’s immunity to global economic trends proved to be wishful thinking.

Property owners rushed to sell. But would-be buyers found themselves stymied by a sudden freeze in lending as UAE banks faced a global liquidity crunch that forced the country’s two main mortgage lenders, Amlak Finance and Tamweel, to stop financing new mortgages.

Now, with global liquidity recovering and local banks slowly easing lending restrictions, analysts say buyers are tip-toeing back into the market to hunt for bargains.

They are proving pickier than in the past, agents and executives say. Properties that are still under construction are out of favour. What’s in? “Anything that’s ready,” says Anjili Samtani, an agent at Megabucks Realty in Dubai.

In part, this shift reflects the disappearance of short-term speculative buyers, the kind of investors who bought “unbuilt” properties with only a small cash down payment, without ever obtaining a home loan.

After being driven sky-high by investors eager to own property in the shadow of the world’s tallest building, prices at two properties near Burj Dubai, Old Town and The Residences, have fallen since September by more than 50 per cent.

Likewise, villas on Palm Jumeirah, some of the world’s most high-profile properties, have fallen in value by 44 per cent.

Analysts say there is also a shift among buyers to quality, a move made possible now that more and more developments have been completed.

“Investors are able to look and touch and feel something that previously they could only see in a brochure,” says Blair Hagkull, the managing director of Jones Lang LaSalle in Dubai. “The motivation of an end-user is quite different from that of a speculator. End-users focus on size and views and parking. People are starting to look at who the developer is, who the contractor is. Design issues are becoming more important.”

Some developments have therefore bucked the trend and risen in value. Affordable housing in developments such as Discovery Gardens and International City, for example, has managed to rise in value through the slump.

Properties with prime locations or outstanding amenities have performed even better. Yacht Bay, with views of Dubai Marina Yacht Club, has enjoyed a 55 per cent jump in price.

The Waterfront, one of several luxury developments by Trident International Holdings, has jumped in value by 62 per cent. “The finishing is superb,” says Ms Samtani.

The bluest of the blue-chip properties have lost little of their lustre. The most expensive property in Dubai, for example, remains the luxurious La Reve Tower, where prices remain at roughly Dh2,500 a sq ft even after falling 26 per cent since the start of the year.

But prices at La Reve are still 35 per cent higher than they were a year ago.
This differentiation, property executives say, is likely to determine which developers survive the downturn and which don’t.

“In this process of natural selection, buyers will be killing off the brands of developers that didn’t deliver on their promises,” Mr Mahoney says.

Analysts warn that there is little to keep prices from falling further during the summer slowdown in business activity. “The panic is still there,” says Sharjeel Bijdani, a banker in Dubai who owns four apartments. While transaction numbers improved in February and March, analysts say not to expect any improvement until after Ramadan.

Some also warn that easing mortgage terms could unleash a wave of pent-up selling as buyers obtain financing to pick up bargains.

When the market finally recovers, analysts say, it is likely to be much more robust. The Land Department’s statistics, for example, could help reduce volatility in prices by improving transparency, and the shift from short-term, speculative property investing to long-term purchases by people who want to live in the homes they buy will tend to make prices more stable, they say.

The market’s current malaise, therefore, is helping push Dubai’s urban development into a more mature phase. “This whole move, as painful as it is for everyone, particularly for us,” says Mr Mahoney, “is better for the city in the long term.”

Source: The National
By: Wayne Arnold

Year-on-year Dubai property price fall hits 9%

2009-05-07T19:41:00.000+04:00

A report by property consultancy CB Richard Ellis on the Dubai real estate market confirms that the sector is unlikely to see a short term turnaround in fortunes due to a number of factors. These include redundancies in the real estate and financial sectors and the ripple effects in other industries, the fall in the influx of expatriates that had helped to fuel the property boom and the local effects on short term lets of the decline in tourism.

The completion of new supply has meant that the properties worst affected are in units that have come online in the past six to nine months, mainly in areas such as Business Bay, Jumeirah Lake Towers and, for commercial units, the Tecom areas.

In terms of lease rates for residential properties the report states that the year on year decline from Q1 2008 to Q1 2009 stands at an average of only 9%, although the downward change from Q4 2008 to Q1 2009 is much larger, an average of 23%, reflecting the enormous price gains seen in the market throughout the first nine months of 2008.

Predicting when the market will bottom out is complicated by the fact the real estate sector in Dubai as elsewhere is largely sentiment driven.

'You still have a number of investors who bought a lot of property, and are probably willing to sell some of it at a very low rate in order to recoup part of their costs,' Matt Green, Associate Director for research and consultancy at CB Richard Ellis told AME Info.

'I don't think that we'll see units going for much below the original price, but each case is a reflection of the investor rather than the market. There is such a level of negative sentiment at the moment that if some investors are wiling to go lower in terms of sale prices then everyone else does.'

The number of property transactions has also witnessed similar declines, in both off plan and ready built units. Data sourced from the Dubai Land Department shows a drop in the number of sale transactions from 1,486 in Q1 2008, to just 595 in Q1 2009, a drop of approximately 60%.

'What we're looking for in order to gauge the turn is a period of stability, both in terms of selling prices and rental figures, but it's hard to see that happening before the end of the year.'

Offplan properties have borne the brunt of the effects of the downturn, with speculative investors in particular defaulting on payments or selling units at close to original prices. While the speculators have been replaced in the market by end users and investment funds, these are adopting a 'wait-and-see' approach and concentrating on units that are either finished or scheduled for completion within the next 12 months.

'The new supply that has been planned to come online over the next couple of years is going to put severe pressure on the market, especially as demand continues to slow,' said Green.

Dubai property prices 'fall 41%'

2009-04-28T19:27:00.003+04:00

Property prices in Dubai plunged 41% during the first three months of this year, a report has calculated.

The decline is from the last quarter of 2008, said global real estate consultancy Colliers International.

It is just the latest indication of the extent to which Dubai's property boom of recent years has come to an end in the face of the worldwide recession.

Colliers said prices had fallen as global finance has dried up and job opportunities in Dubai have declined.

Speculators exit

The firm's report measured property prices in parts of Dubai where foreign workers have been allowed to buy homes since the market was opened up in 2002.

The 41% drop in prices between January and March followed an 8% fall in the previous three-month period.

Colliers added that speculators - people who had bought property in Dubai as an investment - had already left the market.

It said prices were now likely to continue to fall, but it was too early to predict when the market would hit rock bottom.

"The heat has gone out the market completely," said Colliers' Middle East chief executive John Davis.

Dubai has enjoyed rapid economic growth over the past decade, led by a construction boom, as its ruler Mohammed bin Rashid Al Maktoum sought to diversify the economy away from its diminishing oil reserves.

It is one of the seven states that make up the United Arab Emirates.

Source: BBC News

Distressed property continues

2009-04-08T20:40:00.001+04:00

The last 9 months or so, there has been a gradual increase in desperation amongst those looking to dispose of their properties in Dubai. Slowly but surely demand has ebbed away which initially caused a gradual slide in prices, although the pace of the falls has started to quicken of late. There are signs that new developments are in serious trouble and those who had literally doubled their money during the property boom are now counting the cost with many property prices back to where they started.

Among the more distressed property price sales reported of late include:-

A Palm Jumeirah garden home which sold for just AED5.8 million, a price which very few people thought they would ever see again. This is an approximate fall of about 50% from the highs reached only a few months ago.

There are also reports of distressed sales in Downtown Burj Dubai where properties are just not selling and investors are becoming more and more desperate to exit the region. There is a suggestion that one-bedroom apartments in the Burj Dubai (the tallest tower) are changing hands for just AED800k.

There is mention on the thread of a Palm Signature villa changing hands at just AED4.9 million against a valuation price of AED11 million in October 2008. Quite literally prices are continually falling and while there is some interest, buyers most definitely have the upper hand.

Real estate regulatory body in Dubai set to get tough with developers

2009-02-20T23:31:00.001+04:00

Property developers in Dubai who fail to meet standards, don't deliver on time and construct poor quality buildings are to be named and shamed.

The move from the Real Estate Regulatory Authority is aimed at addressing a growing number of complaints about delays, defects and standards.

Chief executive Marwan Bin Galita said the regulatory body was not going to let developers get away with shoddiness.

He has personally told property developers that they need to be more flexible and communicate effectively with real estate investors, especially in the economic downturn.

He said that while developers would be allowed to retain 30% of the value of property, as is allowed in current contracts, if investors sought to pull out of projects. But he also said there should be exceptions.

'Exceptions could be made if the investor is unable to continue to pay due to some genuine reasons, such as loss of pay, job loss. This should be considered,' he said.

Such exceptions would have to be discussed and approved by RERA. 'They will be handled on a case by case basis,' said Bin Galita .

He also told developers that RERA had been particularly active in recent months as it strived to restore investor confidence to the market.

There are also discussions about a real estate committee being formed by professionals from within this sector serving as a platform for consultation prior to the issuing of new regulations and guidelines.

Key areas for consideration would be whether or not property investors should receive compensation if a project is delayed and if heavier penalties should be imposed on developers who fail to deliver on time.

Source: Property Wire

Dubai realty sector to see mixed performance in Q4

2009-01-28T13:47:00.000+04:00

UAE real estate companies are expecting a mixed performance in the fourth quarter with earnings of Dubai-based developers likely to reflect the impact of the global liquidity crunch, a research report has said.

Credit Suisse's fourth quarter preview on UAE real estate says Dubai property developers are feeling the pinch of a global economic slump, with property prices dropping 23 per cent last December and thousands of expatriates losing their jobs, leaving an over-supply of housing units.

However, Abu Dhabi-based developers will fare better than their Dubai counterparts with visible under-supply sustaining property prices and demand.

According to the report, Abu Dhabi's top property company Aldar Properties' net profit for the period is expected at 1.2 billion dirhams, 62 per cent higher from the third quarter, with full year earnings expected at 4.6 billion dirhams.

"We expect fourth quarter earnings for both Aldar and Sorouh to increase by 62 per cent and 13 per cent, respectively compared to the third quarter. However, we expect earnings of Dubai's Union Properties to decrease by 50 per cent and Emaar 43 per cent," Credit Suisse said.

It said net profit for the fourth quarter of Emaar Properties, the region's biggest property company, is expected to drop from the previous quarter to 855 million dirhams on slower revenue growth. Emaar posted a net profit of 1.51 billion dirhams in the third quarter of 2008.

Emaar's full year profits should reach 5.7 billion dirhams, 13.3 per cent lower from 2007 earnings of 6.575 billion dirhams as the company took a 750-million dirhams goodwill writedown in the third quarter related to its US home-building unit, John Laing Home, it said.

Source: the hindu

Progress on track for Schon Properties - 8 Dubai Lagoon buildings to be delivered in 2009

2008-12-15T00:56:00.002+04:00

Schon Properties has announced that the company is moving full steam ahead on all current projects within the portfolio, despite the market slowdown, and will deliver the first 8 buildings of the Dubai Lagoon community in the 4th quarter of 2009 as planned.

Although market conditions have created more serious repercussions in the region than originally expected, Danial H Schon, Vice President of Schon Properties is forthright about the company’s strong foundations, “Schon Properties has a solid financial position and our commitment will not waiver. There is no borrowing and zero liability both in Schon Properties and Schon Group, and this makes us one of the strongest real estate developers. A reduction in sales is inevitable for the short-term, but as the majority of our projects are 75% pre-sold, a slow down will not have a major impact on business activity”.

The announcement has been made to allay fears of non-deliveries because of the current economic situation. The concern about Dubai’s public and private sector debt escalation has worried everyone, especially property investors and end-users who fear the downturn may result in construction slowdown; or worse, abandonment of projects.

“We see the current situation as blessing in disguise, an opportunity to consolidate our current portfolio and concentrate on completion and delivery,” continued Schon, “On Dubai Lagoon, works on zones 1 and 2 are in progress by Power Line Gulf Construction. The contractor for zones 3 and 6, Belhasa Engineering & Contracting Co, is currently mobilizing and permits have been obtained and essential contractor site facilities, such as offices and ablution blocks are being installed in preparation for the full main works activity at site, which will become more apparent shortly”.

“We believe this correction is ultimately healthy for the Dubai real estate market as it slows the speed of growth, not stops it, which is beneficial for the long-term sustainability of the market. What differentiates Schon from other companies is our vision of providing a service to our community by offering affordable housing, which is practically non-existent in Dubai. With this vision, we foresee a bright future for our buyers, partners, and our city,” he added.

Other projects including Schon Business Park, Schon Residences, Schon Suites and Libertas are also moving ahead as scheduled.

Spurred by a vision to build sustainable and financially accessible homes and communities throughout Dubai, Schon Properties was one of the first developers to offer a 7 year payment plan back when there was no mortgage market in the UAE. In light of the current situation the company is now revisiting ways in which to offer the most beneficial terms of purchase and also looking into collaborations with major banks to channel through their in-house mortgage advisory service.

“2008 has been a challenging year in more ways than one, but we are confident that the new year will bring many positive developments and are taking measures to reinforce our market presence by creating value-added services such as a facilities management division and the recently launched subsidiary company NOHCS Property Advisory,” ended Schon.

Source: Al Bawaba ( www.albawaba.com )

More Dubai real estate companies will close

2008-12-03T11:14:00.008+04:00

It is sad but true that there are Dubai real estate brokers that are now on the course of closing their companies. A friend of mine was asking me if I know any job vacancy because she was already informed by her employer that their company will close the end of this month.

Last month, a client for a Dubai property site of my other friend was advised to stop working on their website he was working.

These only show that Dubai real estate companies are on the stage of closing their businesses. That is quite alarming.

Property developers granted payment extensions

2008-11-24T09:10:00.003+04:00

In order to put an end to the confusion and panic that is currently existing in the market, the master developers are said to be offering payment extensions to property developers in Dubai.

A developer in Dubai, when speaking to the media, revealed that when they requested their master developer to defer their land payment, they were readily granted a three-month extension.

The extension granted was for a plot of land on the waterfront development, for which, the developer had remitted 50 percent of total value at the time of purchase.

In the meantime, the infrastructure projects in Dubai, such as the plans by Roads and Transport Authority and the new Al Maktoum International Airport in Jebel Ali, would all proceed as stipulated in Dubai Strategic Plan 2015.

According to Nasser Al Shaikh, the Director General of Dubai Department of Finance, a growth rate of 11 percent annually, is expected until 2015, but with the current situation, Dubai would continue to witness economic growth, although at lower rates.

The government and financial institutions are getting highly transparent in their operations and transactions. This is more evident, with Dubai initiating new laws to regulate its banking and property sectors, and this is no-doubt a positive outcome of the global crisis.

Property lenders Amlak and Tamweel to unite

2008-11-23T12:09:00.003+04:00

According to Amlak Finance and Tamweel, two Dubai-based property finance groups with total assets of around 7 billion dollars, have begun a merger process.

They said that the merging of the two largest finance groups under the supervision of UAE Real Estate Bank will create the largest real estate finance institution in the country.

In the first half of 2008, Amlak Finance had assets of 14.2 billion dirhams (3.86 billion dollars)
and Tamweel's assets were worth 10.8 billion dirhams (2.94 billion dollars), giving a combined value of 25 billion dirhams or 6.8 billion dollars, WAM reported.

News that the merger process is underway, after the idea was mooted in early October, came on the eve of the start of a new stock market week in the Emirates, where property stocks have fallen sharply in recent weeks amid the global economic crisis.

Real estate sector in troubled?

2008-11-19T15:11:00.005+04:00

With all these current economic climate and the impact on the Dubai's property sector, their are companies who are coming up with strategies and plans to help them survived and continue with their projects.

While their are newly opened real estate brokers which are now closed and had their internet marketing strategies stopped because they have already spent and lost millions of dirhams and had earned nothing during the past months. Sorry to hear that and sorry to those had been laid off.

Will property developers still be able to build those projects? Didn't these companies never predicted through their marketing research the impact of this economic crisis? And the question is, will you still invest in Dubai real estate market?

Distress sale of property

2008-11-12T16:46:00.003+04:00

Distress sale of property are properties that are sold in the market with either the same price as what they have bought the property also called No premium property or worst less than the amount which they have bought it.

This happens when their is suffering or critical condition as what distress means. Their are actually properties for resale now here in Dubai that are classified as distress sale. I will explain further what distress sale is in my next post.

Rocky Real Estate Dubai

2008-10-29T23:00:00.006+04:00

While doing a search about the real estate in Dubai, I came upon an article that real estate boom in Dubai in ending. Agents says that rocky real estate Dubai sales is collapsing due to the global economic crisis.

I notice that this is somehow true as there are properties listed in our websites that have zero premium. It means that property owners are selling their off-plan properties on the secondary market knowing that they have profited nothing on it. I also noticed that after I came back from my vacation, properties that are in the market are reducing their prices.

Rocky real estate in Dubai, is it?

Property for sale

2008-10-25T01:05:00.004+04:00

Selling a Dubai Property depends upon the development where the project is being built, the more popular the development is, the more expensive the value of property will be. Prices in selling properties in Dubai are gauged by per squire foot. In my early days working in a real estate company here in Dubai, I have no knowledge of how selling and buying of property, but as days goes by I am able to know what are the prices per square foot on different development or projects are. Everyday there are a lot of properties being listed on our website and that only shows that real estate is a good business.

Abu Dhabi, Dubai lead UAE real estate boom

2008-08-26T14:24:00.000+04:00

DUBAI: The booming real estate industry in the United Arab Emirates (UAE) grew at 1,200-1,500 per cent between 2000 and 2007, new figures reveal.

According to figures released by Dubai's Real Estate Regulatory Authority (RERA) and Dubai Land Department (DLD), this west Asian metropolis and the UAE capital of Abu Dhabi led this boom with 4,047 real estate and related companies between them.

This includes 1,588 companies and contracting offices in Dubai, and 1,588 management, investment and real estate development companies in Abu Dhabi.

"As one of the country's most profitable investment sources, the real estate sector is attracting the attention of investors from all over the globe, due in large part to the composed projects and environment that the market provides for investment," Ali Fakhruddin, Director of leading UAE real estate company Fakhruddin Properties, commented following the release of these figures.

"As a result, bank funding for the real estate market alone in 2007 amounted to 45 billion dirhams ($12.25 billion), of a total of 75 billion dirhams ($20.4 billion) allocated for the construction sector," he said.

A global survey conducted by recruitment company Manpower Middle East rated the UAE as the sixth most popular work destination in the world and the number one destination for workers already based in the Middle East.

"Part of the reason behind this is that, due to the high level of growth in the region, the demand for workers is at an all-time high, and because of this, there is no shortage of jobs in the country, and packages are generous so as to attract and keep workers within the UAE-based companies," Fakhruddin said.

The UAE economy was ranked 63rd, with an overall score of 62.8 percent on the 2008 Index of Economic Freedom, which examined the economic activities of 162 countries, focusing on 10 specific factors.

The UAE recorded an above-global average in monetary freedom (70.9 per cent), trade freedom (80.4 per cent), government size (80.2 per cent) and fiscal freedom (99.9 per cent).

Dubai Real-estate official faces $816 m bribery charge

2008-08-17T09:18:00.000+04:00

DUBAI - A senior official working with one of the leading real estate developers in Dubai is under scanner for allegedly taking $816.8 million as bribe, the latest trade scandal to crop up in the Gulf business hub.

Walid Al Jaziri, General Manager of sales at Nakheel, the state-owned company behind Dubai's iconic projects such as Palm Islands and The World, has been accused of committing financial fraud to the tune of $816.8 million.

The company has denied the charges, saying, “no embezzlement has taken place within Nakheel and the figure of $816.8 million quoted is categorically incorrect.”

However, a Nakheel spokesperson has told the Gulf News that the company regularly conducts internal audits as part of its commitment to a transparent corporate governance. “As a result of this internal audit process, the company can confirm that a member of staff is being interviewed by the authorities.”

It insisted the allegations of financial irregularities are “in relation to the acceptance of sums paid to an employee by third parties”.

This is the latest case in a series of graft probes in Dubai in recent weeks. There have been reports of an investigation into an alleged financial fraud at real estate finance company Tamweel. - PTI

Cityscape Dubai 2008 another guaranteed sell out

2008-07-16T01:07:00.000+04:00

World’s largest B2B real estate investment & development event grows to 75,000 square metres – 1,000 exhibitors expected as regional real estate boom continues despite global credit crunch

Building on the phenomenal success of Cityscape Dubai 2007, IIR Middle East, the organiser of Cityscape Dubai, has announced that this year’s event, which is now being extended to cover four days from 6 - 9 October 2008, is already a guaranteed sell out, with 1,000 exhibitors and 60,000 participants expected.

Having already grown by 25% and 27% respectively over the last two years, the premier event in its class is now set to occupy over 75,000 square metres of exhibition space, close to the Dubai International exhibition Centre (DIEC) capacity.

This is particularly impressive given the exponential growth since its 2002 debut which attracted a mere 1,000 participants. Commenting, Rohan Marwaha, Managing Director, Cityscape, stated, “Taking into consideration all of the firm commitments we have received to date, Cityscape Dubai 2008 is already a guaranteed sell out. For the past six years we have consistently grown the event and this year will be the biggest yet, not only in terms of exhibition space but also in terms of participants.”

“Despite the global credit crunch and the dramatic downturn in certain real estate markets such as the US, UK and Spain, the underlying strength and positive sentiment of the wider regional market is undisputed,” added Marwaha.

The final figures for the 2007 show make impressive reading by any international industry standards, confirming its position as the world’s largest business to business real estate investment and development event - 849 exhibitors, with 51,855 industry professionals participating from 136 countries.

Eager to associate their own brands with Cityscape and the astounding exposure to such a range and depth of high profile industry professionals, major international developers and investors have been quick to snap-up advertising and sponsorship opportunities.

To date regional heavyweights, Nakheel, Aldar Properties, Qatari Diar and Dar Al Arkan, Saraya Holdings and Tanmiyat Group have signed up as platinum sponsors. Abyaar Real Estate Development, Tameer and Aqaba Development Corporation, have opted for Gold sponsorship status, with Al Qudra Real Estate, MAG Property Development and Kazemir Aktau Development taking Silver.

Five parallel conferences will take place, attracting key investors, real estate developers, architects and designers amongst others. In addition to the hugely successful Cityscape Dubai Conference, new this year will be the Real Estate Leadership Strategy Forum and the Facilities & Asset Management Conference which will run in parallel with the more established Hotel & Tourism Investment & Development Conference and the perennial World Architectural Conference.

A key feature of Cityscape Dubai 2008 will once again be the Cityscape Architectural Awards 2008 – the most prestigious architectural awards platform for the emerging world to be held under the theme – "Design for an Emerging World".

The Awards will recognise and reward excellence in architecture and design for the emerging regions of the Gulf States, the Middle East, Asia, Africa, the Indian subcontinent, Australasia (excluding Japan, New Zealand & Australia) and Latin America.

“Cityscape’s international brand value is beyond reproach with an unrivalled reputation as a comprehensive international series of B2B real estate events. Undoubtedly, once again Cityscape Dubai is being recognised as the most important event on the international industry calendar,” added Marwaha.

Expert predicts sustainable property prices by 2009

2008-07-02T21:45:00.000+04:00

Expert predicts sustainable property prices by 2009

The next wave of supply coming in 2009 and 2010 may help bring stability to the Dubai market, says MAG Group Property Development.

The booming of property market in Dubai and the Northern Emirates is expected to achieve a more sustainable balance between investors and property owners by 2010, according to a leading developer.

"Driven by Dubai's frenetic and speculative real estate market, the United Arab Emirates' property market has seen unprecedented growth in recent years, easily outpacing the rest of the Arabian Gulf states combined," said Mohammed Nimer, CEO of MAG Group Property Development.

"The construction boom in buildings is about to peak in 2009, with $3 billion worth of real estate either on the drawing board or under construction. From there, the value of the market will fall back to 2007 levels of around $1 billion as more units are delivered. That will hopefully subdue rising market prices," he added.

The MAG Group CEO says actual home owners currently account for just 30% of the properties sold at launch. Real estate sales are still being dominated by short-term investors and not end users, resulting in inflated prices as units are ‘sold-on’ with a premium numerous times prior to completion.

Evidence of the UAE construction boom in property reaching a peak next year can be found in the database of Proleads, the Dubai-based research company that monitors major construction projects across the region from initial planning to completion.

The database shows more than 80 units blocks individually budgeted at up to $100 million currently under construction in Dubai and the Northern Emirates with a combined value of more than $4 billion. But the database also shows a dramatic decline in announced new or planned construction of similar buildings throughout next year and 2010 as dozens of projects reach completion.

"Most projects are still under construction and the next wave of supply will be coming in 2009-2010 which may help bring some stability to the market," said Nimer. "However, this may not provide major relief from rising prices as much of the problem is also due to the ever-increasing costs of land, labour and materials – something not likely to change in the short term."

MAG Group focuses on developing moderately-priced properties which appeal to owner-occupiers. "In the residential sector we emphasis on competitively priced buildings appealing to the mid-range market," said Nimer.

The Dubai real estate market has grown in 2008 with the rate of advance in prices accelerating to a level not seen since 2004, Nimer added. "Prices will continue to go up for the foreseeable future but the non-speculative case for buying real estate – to save on rent and protect capital against inflation – is becoming stronger," he said.

The MAG Group currently has seven property projects across Dubai worth AED3 billion and is expected to grow its portfolio to AED5 billion over the next two years.

Source: Al Bawaba (www.albawaba.com)

Dynamic Tower, world’s first revolving tower

2008-06-28T23:59:00.000+04:00

NEW YORK - An Italian architect said he is poised to start building a skyscraper in Dubai that will be "the world's first building in motion," an 80-story tower with revolving floors that give it an ever-shifting shape.

The spinning floors, hung like rings around an immobile cement core, would offer residents an ever-changing view of the Persian Gulf and the city's futuristic skyline.

A voice-activated computer would spin a few penthouse villas. The rest of the building's motion would be choreographed in patterns that could be altered over time.

At a New York news conference on Tuesday, the designer, David Fisher, declared that his tower will revolutionize the way skyscrapers are made.

Mr. Fisher acknowledges that he is not well-known, has never built a skyscraper, and hasn't practiced architecture regularly in decades. But his project has drawn top design talent, including Leslie Robertson, the structural engineer for the World Trade Center and the Shanghai World Financial Center.

"I did not design skyscrapers, but I feel ready to do so," Mr. Fisher said.

Twisting floors are just one of several futuristic features in the building, the first of several Mr. Fisher hopes to build with a similar design. Wind turbines installed between each floor, he said, will generate enough electricity to power the entire building, and lifts will allow penthouse residents to park their cars at their apartments.

A second version, to be built in Moscow, would have a retractable helicopter pad. Both structures, at more than 1,300 feet, would be taller than the Empire State Building.

Even the method of construction would be unorthodox.

Mr. Fisher said each floor will be prefabricated in an Italian factory and then shipped to the site to be attached to the core. Assembling a building in this fashion, he said, will require only 80 technicians and take only 20 months, saving tens of millions of dollars, for a total cost of $700 million to build.

On its face, the project seems to pose a number of complicated engineering puzzles.

How would the plumbing hookups work in an apartment that is constantly moving? Mr. Fisher said the pipes will connect to the core via attachments like the ones used by military aircraft for in-flight refueling.

Wouldn't people get dizzy? No, Mr. Fisher said. The rotations will be slow enough that no one will notice.

With so many moving parts, wouldn't the building be a maintenance nightmare? He said the modular construction will allow easy access to parts that need to be replaced.

Mr. Robertson, who attended the news conference, said the skyscraper might be unusual, but is "absolutely" buildable. "You can build anything," he said.

Mr. Fisher declined to say where in Dubai the tower will be built or when site work might start. He insisted, however, that factory production is set to start within weeks and that the tower, which will contain office space, a luxury hotel, and apartments, will be complete by 2010.

Sales of individual apartments will begin in September, with asking prices of around $3,000 per square foot. The smallest, at 1,330 square feet, would cost about $4 million and the largest, a 12,900-square-foot villa, $38.7 million.

Skeptics might question Mr. Fisher's credentials to pull off the job. In a biography he had been distributing, he said he graduated from the University of Florence in 1976, came to New York in the mid-1980s, and later developed hotels and ran a firm specializing in stone and prefabricated construction materials.

The biography also said he received an honorary doctorate from "The Prodeo Institute at Columbia University in New York." No such institution exists and Columbia said it had not given him an honorary degree.

Mr. Fisher said through his publicists that he had been awarded the degree by the Catholic University of Rome in 1994 at Cathedral Church of St. John the Divine, which is near Columbia's campus. Asked again to clarify the school's name, his publicists said in an e-mail that the information has been removed from his bio.

Source: Toledoblade.com

Dubai's Islamic bank mystery and the case for reform

2008-06-24T23:06:00.000+04:00

What's going on with Dubai Islamic Bank? The emirate's financial community is abuzz with speculation, following a spate of arrests of former employees in a widening corruption probe.

Much to the disappointment of business, the details of the inquiry into the city's largest Islamic bank are a mystery. Also unclear is whether there is any connection to another probe into Deyaar Development, DIB's real estate affiliate.

Although several people have been detained, the Dubai authorities have not bothered to issue statements, hold press conferences, or otherwise inform the public about their progress or disclose whether anyone has been charged.

The police, government and public prosecutor did not even react when a Pakistani banker, one of the detainees in the DIB case, alleged that he had been tortured. Rafatul Islam Usmani has pressed charges against the bank, filing his case in the US because, he says, he has no faith in Dubai's legal system.

DIB, which is 30 per cent owned by the government, has said little, beyond telling the market that the investigation would not have an impact on its financials. On Sunday, amid all the controversy, the bank won a regional magazine award as the year's "Best Islamic Bank".

None of this, of course, is a surprise to people who know the Middle East, a region of opaque legal systems, rife with accusations of human rights abuses. But this is Dubai, an ambitions little city-state on a frenetic drive to establish itself as an international business centre.

The emirate has invested in building its brand and in creating the infrastructure that business wants. Its selling pitch has been remarkably successful: the world's top financial institutions have all set up a base there to service a region flooded with petrodollars.

The Dubai International Financial Centre is the main attraction. Created as a sort of superior parallel system, it promises to apply international standards that are many steps ahead of domestic laws. It fancies itself as a future hub of international arbitration, having set up a centre in partnership with the London Court of International Arbitration. And it has its own corporate governance institute, with a mandate to promote corporate governance and institution building across the region.

But Dubai's ambitions do not always square with the realities on the ground. The DIFC's protection goes only so far - for all criminal cases it is the United Arab Emirates federal law that applies. And that system, as one lawyer says privately, "horribly lags behind the buildings, the money, the salaries and the marketing of Dubai".

It is obviously a step in the right direction for the Dubai authorities to be investigating fraud allegations in government-affiliated institutions. The emirate has been desperate to shed the image of a haven for all sorts of dubious activity, including money laundering (and the central bank has tightened the rules there). In the past, financial irregularities were quickly swept under the carpet, avoiding Dubai the embarrassment.

But what is the point of proactive police action unless it carries assurances that detainees are treated fairly and that the legal system will not be abused? Diplomats tell us that the UAE regulatory and legal system is not as dysfunctional as other places in the Arab world. But a US state department human rights report is disquieting: it notes that the judiciary's independence is questionable and, although the constitution prohibits arbitrary arrest, the law permits indefinite prolonged detention without appeal. Judges can renew 30-day extensions to the detention period indefinitely and without charge.

Lawyers and companies flocking to Dubai are well briefed on the shortcomings of the system. Unfortunately, they are loath to criticise it openly, lest they irritate the authorities or lose business. The muted reaction eases the pressure. But if Dubai is to call itself an international financial centre, then it is in its own interest to be making the case for transparency and legal reform across the UAE.

The writer is Middle East editor of the Financial Times roula.khalaf@ft.com

By Roula Khalaf
Published: June 24 2008 03:00 | Last updated: June 24 2008 03:00
Financial Times

Short-term visas for realty buyers in Dubai

2008-06-24T09:50:00.000+04:00

Dubai: Dubai is to introduce a set of short-term visas for foreign investors in the real estate sector, a top official said.

"We have submitted the proposals to this effect to the higher government authority in Dubai to review the visas for property buyers. Once this law is approved, this might be implemented at a federal level as well," Marwan Bin Galita, chief executive of Dubai Real Estate Regulatory Agency (Rera) told Gulf News yesterday.

"There is no direct link between property ownership and residence visas. Developers should not lure investors to property sector with a promise of residence visa."

His comments reverse the government's earlier stand.

Dubai government opened the emirate's property sector to foreign investors in designated freehold areas in 2002, and in the absence of a proper real estate law then, the three master developers - Emaar, Nakheel and Dubai Properties - had promised to facilitate a three-year renewable residence visas to owners of freehold properties under a special arrangement with the residency department.

More than 20,000 families have moved into their freehold homes during the last six years, many on residence visas linked to their homes.

Limelight

The issue of the residence visas linked to freehold property came to light following the recent Gulf News report in which a senior government official said foreign buyers are entitled to residence visas if they purchase property.

Thousands of foreigners have invested in new property currently in various phases of development in the hope that they will get residence visas automatically, as advertised by developers, which Ghalita termed erroneous.

"We are raising the issue now because there is confusion among the public in this regard. We are urging people not to link the obtaining of a residency visa with buying property," he said. Bin Galita said the issue of visas is related to the "development company" and not the "property people buy".

He said obtaining residence visas in Dubai is not so hard. One can open a company or invest or be a partner in the company. People should not rely on the property or the investment company.

"We are a different body from the residency department. Even if the investment company applies for a residence visa for a buyer, the residency department could reject it.

"It is not a must that those who buy a property can get a residence visa," he said.

"If a development company goes bankrupt, what happens to the residents sponsored by that particular company? We are also examining."

By Bassma Al Jandaly, Staff Reporter
Published: June 23, 2008, 23:33
Gulfnews

Dubai property prices soar 78%

2008-06-23T09:10:00.000+04:00

Property prices in Dubai surged by at least 78% over the last year, according to Colliers International.

“Dubai has witnessed tremendous growth in the real estate sector over the last year, with an increase in the number of overseas homebuyers and investors,” said Colliers' Middle East CEO, John Davis, at the launch of a new house price index in Dubai on Tuesday.

According to the index, prices rose by 42% between Q4 2007 and Q1 2008 alone. The largest increase was recorded among villas, where prices rose 85% between Q1 2007 and Q1 2008.

Dubai, has benefited from a six-year real estate boom triggered by the introduction of foreign ownership rights in the emirate while an influx of expatriates has driven prices higher as developers have struggled to keep pace with demand for apartments and villas.

The UAE, home to about 8% of the world’s oil reserves, is seeking to diversify its economy by developing lavish real estate projects such as the ‘Palm’ islands being developed offshore and the vast theme park-based Dubailand.

By:Arabianbusiness.com

Dubai property auction fetches Dhs250m

2008-06-14T02:52:00.000+04:00

Auction house Mazad, part of the Dubai Properties Group, fetched nearly Dhs250m ($68m)within two hours at its June 8th auction in Dubai. The exclusing auction of residential and commercial units and plots of land from developments from within Dubai Properties' portfolio took place at the Burj Al Arab Hotel. It was attended by over 250 of Dubai's elite investors from the UAE, the region, and overseas.

By: ameinfo

Extended wait for Burj Dubai

2008-06-10T12:01:00.000+04:00

Burj Dubai will not be ready until at least September next year – a delay of nine months.

Construction work Burj Dubai began in 2004 and was to be completed in December this year. However, that date has been pushed back to maintain the highest quality and to upgrade the interior design that was originally created in 2004, said Mohamed Ali Alabbar, Chairman of Emaar.

"We are expecting it to be ready by August or September next year. What matters for us is the quality and not the date," he said.

Most recently, work on Burj Dubai was halted for 18 days last month due to high winds, according to senior officials on the site. And last year, a two-week strike by 40,000 labourers of Arabtec, one of the construction companies working on the project, also delayed work.

In a statement yesterday, Emaar said the project will be completed by September 2009. "The luxury finishes that were decided on in 2004 is now being replaced by upgraded finishes.

"World-class designers were brought in from California and SOM to revise the interior design, and accordingly all apartments are being upgraded following a redesign process that took two to three months.

Speaking to Emirates Business, Fred Durie, executive director – development, Emaar, said construction of all livable floors of Burj Dubai is complete. "Work is progressing on two communication floors. The final height of the tower will, however, be revealed only by the chairman," said Durie.

The Burj Dubai currently stands at more than 630 metres and, according to Durie, it will be substantially higher.

Source: Buiness24-7

Arabtec secures Dh3bn deal

2008-06-09T11:12:00.000+04:00

Arabtec Construction has been awarded a Dh3bn ($816m) deal to build 1,500 homes at Nakheel's Al Furjan development in Dubai. The deal is the company's largest UAE contract so far this year. Construction on the villas and terraced homes will begin in August, with the first completions expected in late 2010.

Source: ameinfo

Dubai Public Prosecution and Emcredit to tackle cheque default occurrences

2008-06-09T09:39:00.000+04:00

Emcredit, the UAE’s first private credit information services company, announced today that it has signed an agreement with Dubai Public Prosecution, to share litigation data of judged cases on cheque default cases of individuals and companies. This data will be used to enable lenders and other businesses to better assess the risks associated with borrowers and partners.

Under the terms of the agreement, Dubai Public Prosecution will provide access to litigation data and data on historical cheque honouring behaviour of individuals and companies to Emcredit. This information will in turn be used by Emcredit to complement its emBounce solution that provides clear, comprehensive and up-to-date records on defaulted cheques.

EmBounce is a tool to enhance the risk assessment process of lenders and companies accepting cheques, while in turn setting the building blocks of credit reputation for cheque issuers. Through emBounce, real time data is provided to Emcredit’s customers in real estate, financial and insurance sector.

The agreement was signed by H.E. Yousef Hassan Al-Mutawa', Senior Advocate General of Dubai Public Prosecution, and Ali Ibrahim, Vice Chairman of Emcredit.

H.E. Yousef Hassan Al-Mutawa' said: “As the economy experiences unprecedented growth and businesses continue to flourish, tools are needed to ensure a stable financial sector and keep financial crime in check. Our partnership with Emcredit will enable businesses to identify cases of high financial risk, and act as self-discipline mechanism to reduce incidences of bounced cheques in the long term.”

Dubai Public Prosecution data on defaulted cheque lawsuits will be provided to Emcredit’s state-of-the-art data hosting systems under advanced security and data protection procedures. Data will be updated on a daily basis.

Al-Mutawa' added: “This agreement comes in line with the strategic plan followed by Dubai Public Prosecution to expand our institutional and community partnerships, which will guarantee high quality services to Emcredit customers. I would also like to stress the importance of strong institutional relations between corporations to achieve a high level of services in the UAE governmental departments and public institutions. This will help in effectively serving justice, and increasing the efficiency and performance of judicial work in the Dubai Public Prosecution.”

“This landmark agreement reflects the growing public-private partnership in the UAE’s dynamic economy,” said Ali Ibrahim. “Based on the data from Dubai Public Prosecution, Emcredit’s emBounce solution provides an up-to-date record on incidences of defaulted cheques. The valuable data shared by Dubai Public Prosecution will further complement Emcredit’s emBounce services by providing litigation details and accurately highlighting the associated financial risk. Such comprehensive credit information will empower daily business decisions.”

Emcredit has also signed agreements with several other government departments to enrich its database. These include Dubai e-Government, Dubai Police and an exclusive agreement with Dubai Land Department’s Real Estate Regulatory Authority. Emcredit recently signed agreements with Amlak Finance, Better Homes and Dubai Bank. The company’s fast-expanding partner network demonstrates the growing importance of understanding the financial behaviour of borrowers.

Emcredit’s services are provided to institutions across the UAE. The company is based in the Dubai International Financial Centre (DIFC) and operates in line with the DIFC’s Data Protection Law, ensuring the confidentiality and security of collection and usage of its credit information database.

Source: Al bawaba

Dubai property buyers have right to visa

2008-06-07T15:39:00.000+04:00

Dubai: Freehold property buyers are fully entitled to residence visas, a senior government official has confirmed, quashing widespread confusion among homebuyers in the UAE.

Officials at Dubai's Naturalisation and Residency Department (DNRD) have confirmed that anyone who buys a freehold property in the emirate is entitled to residence in Dubai through the master-developer.

Omar Mattar Bin Mizaina, head of employment permits section at DNRD, said,"Anyone who buys a property can get a residence visa in Dubai.” There has been widespread concern and confusion in recent weeks among property buyers about this issue, with some believing that master developers had broken the contract as visas had not been issued.

Bin Mizaina said property owners can choose whether they want to be sponsored by their master developer or their employer."You must be a property owner, but it depends on the Ministry of Labour, as some cases are given special approval. But, yes, you can choose,” he said.

This is good news for Dubai property owners, as it is seemingly a way of getting around the dreaded ban. Now, if you own a property, even if you resign or are sacked from your job, you will still have your residency visa and won't have to leave the UAE.

However, Mohammad Bin Braik, chief operating officer of Dubai Properties Group, told Gulf News last week:"Resident visas for freehold buyers are subject to conditions which include that you cannot seek employment or run a business and one would assume the buyer has sufficient funds to support himself.”

Residence visas are given for one, two, or three years and are then renewed by the DNRD through the original sponsor."As long as you own a property, you will have a residency visa,” Bin Mizaina said.

Delayed by developers

With the DNRD now clarifying the issue, it seems the delay in providing the promised residency visas lies with the master developers. Both Nakheel and Emaar have issued statements saying that they do sponsor freehold buyers for residency visas in line with the rules and procedures of the DNRD.

Despite the DNRD's clear-cut process, many people in Dubai who have bought freehold properties have still not received their residency visas.

Bin Mizaina said that the master developer can apply for residency visas as soon as a property is bought and a contract is signed with buyer.

The law itself clearly states:"If the homeowner has no alternative means of sponsorship for a residence visa, the first owner may be sponsored by your master-developer for residency in Dubai, UAE, subject to the applicable immigration laws of the country.”

Legal issues

Bypassing Labour Law

An official at the Ministry of Labour said that no resident can jump an employment ban in the UAE."A person with an employment ban can enter the UAE on a visit visa but this does not entitle him to work in the country. However, people staying in the country on a property linked residency visa and without an employment ban can work but after they obtain a work permit,” the official said.

Lawyer's view

- According to advocate Mohammad Ebrahim Al Shaiba,
a resident may not work on a property residence visa unless an official work permit is obtained. The employee must cancel the property visa and change to his company's sponsorship, but he may return to his property&rsquos visa after he leaves his work.
-The work ban is not related to residence visa. Holders of property visas or the wives on husbands' sponsorship can still stay in the UAE, while others may enter the country on a visit visa during the work ban. A property residence visa does not guarantee jobs. -

Gulf News
By Suzanne Fenton, Staff Reporter
Published: June 06, 2008, 16:37

Actor Brad Pitt to help design hotel in Dubai

2008-06-05T01:21:00.000+04:00

While browsing the net, I happened to see the hollywood actor's name Brad Pitt at the bottom of the result for Dubai real estate phrase.

DUBAI (Reuters Life!) - Actor Brad Pitt will be part of a team of consultants appointed to design a new five-star hotel and leisure development in Dubai, developer Zabeel Properties said on Monday.

Pitt is the latest Western celebrity whose name will feature in Dubai's booming luxury property sector, after another developer launched projects carrying the names of sports icons Boris Becker, Michael Schumacher and Niki Lauda.

Pitt will be part of a team of consultants from Los Angeles-based architecture firm GRAFT which will be tasked with designing the 800-room hotel, Zabeel Properties said in a statement, without giving the project's costs or construction dates.

In December, Pitt said he wanted to build 150 environmentally friendly homes for families displaced by Hurricane Katrina in New Orleans in 2005.

The hotel will add to Zabeel Properties property portfolio which includes residential, commercial and hospitality developments worth around $5 billion, the company said.

Dubai, a city of sky scrapers and mega-developments such as man-made islands, is the Gulf's tourism and trading hub. Its real estate sector has boomed since the United Arab Emirates member allowed foreigners to invest in property in 2002.

Source:Thomson Reuters

Abyaar announces intention to list on Dubai Financial Market

2008-06-01T12:25:00.000+04:00

Boutique Middle East property developer, Abyaar Real Estate Development Company (“Abyaar” or the “Company”), today confirmed that it intends to pursue a capital increase and secondary listing on the Dubai Financial Market (“DFM”).

The Company, which has appointed NBD Investment Bank, an Emirates NBD company, as its Financial Adviser and Lead Placement Agent, has submitted an application to the Emirates Securities and Commodities Authority (“SCA”) and to the DFM for approval to list its shares on the DFM. Abyaar shares are already listed on the Kuwait Stock Exchange.

Commenting on the announcement, Marzooq Rashed Al-Rashdan, Vice Chairman and MD, Abyaar said: “Demand for the company’s luxury developments in the UAE, which is testament to the high end nature of our design and finishing, continues to grow.

“A capital increase will support us in our ambitious growth plans, which involve further funding of our land bank and diversification into new markets in the Gulf. A listing on the DFM provides an opportunity for UAE based investors to have direct access to this strong and growing market.

“Bearing in mind that the majority of our projects are UAE-based - secondary listing and share sale will no doubt enhance the stocks tradability.”

The capital raising is expected to be launched within the first half of 2008, with the listing on DFM expected within weeks of the launch, subject to ESCA and DFM approval. Abyaar have called for an extraordinary general meeting (EGM) where the 10% capital increase and a possible upcoming Sukuk issuing will be discussed.

Foreign buyers dominate freehold market

2008-05-28T08:40:00.000+04:00

Two out of three of all new freehold properties in the UAE are bought by foreign corporates or individuals who live outside the country, according to one of Dubai's leading property developers.

MAG Group Property Development, which is looking to grow its portfolio of new property projects, said in a Press release that final home owners currently account for just 30 per cent of the market and only 5 per cent of them are UAE nationals. "It is not difficult to understand why," says MAG Group CEO Mohammed Nimer. "Investing in property in the UAE is seen as safe and rewarding and currently better than investing in bonds or stocks. "In spite of numerous challenges, such as rising costs and shortage of contractors, the real estate sector in the UAE is still one of the most important investment areas in the country. The return on the investment can reach as high as 40 per cent — an unbeatable figure."

Nimer says foreign investment by both developers and buyers remains vital for the continued growth of the real estate sector. Foreign individuals and corporates currently represent between 60-70 per cent of buyers of freehold units, he claimed. Nimer also revealed that some developers are now re-purchasing properties they have developed from current owners to re-invest them in the market with returns ranging between 20-30 per cent.

Property prices up by 15% and could double

2008-05-26T19:54:00.000+04:00

The price of oil spiked to $128 a barrel last week and has been taking Dubai house prices up with it. Even the most cursory survey of price changes over just the past two months shows 10%-15% increases across the board. This is probably the highest rate of change in Dubai property prices since the modern freehold revolution began in 2002.

In the US, the collapse of house prices since mid-2006 has been followed by the sub-mortgage crisis since last August. The policy response from the Federal Reserve has been to lower interest rates dramatically. This will allow banks to recoup their losses by increasing the spread between borrowing and lending charges, and gradually put a floor under house prices.

This dramatic loosening of monetary policy has had the nasty side-effect of stirring up commodity price inflation, most particularly in the oil market. For an oil-exporting country like the UAE, this means huge additional liquidity is flooding the banking sector with money supply rising at 37%.

Dollar peg

At the same time the UAE has its currency pegged to the US dollar so the nation has to track US interest rates downwards. Hence you have interest rates falling at a time of rising inflation, in short very high negative real interest rates.

That means the economy is effectively paying you to borrow money. So is it any surprise that there has been a huge dislocation of funds into real estate, further increasing upward pressure on prices?

This is not over yet by a long way. What message does a gain of 10%-15% in two months send to the marketplace? What greater encouragement do investors need when alternative investments all over the world look sick?

Well, how long will this last? Price gains of this intensity are not usually sustainable for long. But a 50%-100% increase in property values over the next six to 12 months is quite possible. After that the market would move sideways awaiting confirmation of its optimism.

Oil prices

Now with Goldman Sachs predicting an oil price spike of $150-$200 within the next 18 months that would suggest very much high property prices are obtainable and will be sustainable at least within that timeframe.

And let us not forget the supply side argument either. UBS has forecast that new property supply will begin to impact on the Dubai market by 2010, and if that came along with a downshift in oil prices – perhaps due to a global recession – then that would finally signal the correction.

But not before house prices reached very much higher levels than we see in the market today, with even observers from the world’s most highly priced property markets becoming shocked by prices in Dubai. Currently they still find the market good value.

Deyaar CEO likely to be prosecuted

2008-05-19T22:58:00.000+04:00

Zack Shahin, the former chief executive of real estate company Deyaar is likely to be prosecuted over fraud allegations. Current chairman Nasser Bin Hassan Al-Shaikh said the Dubai Public Prosecution was close to finalising its investigation. Shahin has been accused, along with two others, of embezzlement, and more arrests are thought likely. Deyaar is Dubai's third biggest real estate developer by market value and 41% owned by Dubai Islamic Bank.

Yet another record for Burj Dubai

2008-05-13T15:35:00.000+04:00

Burj Dubai, the world's tallest tower being developed by Emaar Properties, has recorded another global first with the installation of glass panels at a height of 512 metres (1,679.76ft).

Arabian Aluminium Company (AAC) set the new record yesterday by laying out the high-performance cladding system on Level 141. The cladding system uses reflective glazing, aluminum and textured steel spandrels and vertical stainless steel tubular fins as the primary materials.

Ahmad Al Matrooshi, UAE Managing Director of Emaar Properties, said: "Burj Dubai is setting a new world record in all aspects of high-rise construction. With cladding undertaken on Level 141 of the tower, we have pushed the frontiers of engineering high-rises. Every aspect of the tower serves as a referral source on the practicalities of developing skyscrapers."

Bashar Kayali, General Manager, AAC a member of Al Ghurair Construction Industries, said: "Cladding work of Burj Dubai is being undertaken on a fast-track basis. Installing glass panel at high altitudes is a challenging task that demands the integration of several work-flow systems. With the completion of glass panel installation on Level 141, we are now entering a new realm in executing cladding works."

At 636 metres, Burj Dubai is now the world's tallest building and tallest man-made structure having recently surpassed the height of the KVLY-TV mast in the US, which is 628.8m high.

Emirates Business 24/7

Pre-sale prices for Trump International Hotel and Tower rise to record

2008-05-08T11:37:00.001+04:00

Pre-sales of luxury apartments at the Trump International Hotel & Tower have already overtaken those at the Burj Dubai, with prices rising to a record 12,000 dirhams ($3,267) per square foot, an official said on Tuesday.

Previously the Armani residences at the Burj Dubai were the most expensive in the city, with prices up to 10,500 dirhams per square foot, UAE daily The National reported on its website, calculating that at 12,000 dirhams, a 2,000 square foot apartment would cost 24 million dirhams.

The prices are in line with trends in the UAE, property consultant Blair Hagkull told The National, saying: “We’ve seen prices triple in the last five years and double in the last two years. There is a significant escalation in land prices.”

“It’s a great testament to the building,” Donald Trump Jr, the eldest son of Donald Trump and executive vice president at the Trump organisation, told the newspaper.

Sales had “quietly” begun in June to a select group of “very wealthy Russians and Asians, and Middle Easterners”, Trump said, adding: “These are the guys who contacted us the second we announced the project.”

The $600 million development on the Palm Jumeirah is scheduled for completion in 2009. It will contain 300 hotel rooms with 260 freehold apartments, with official sales beginning in late June.
/Arabian Business/

Emaar launches sale of commercial units

2008-05-07T17:26:00.000+04:00

Emaar Properties will launch a new sale of commercial units in Downtown Burj Dubai and Dubai Marina on Thursday May 8. The offerings include waterfront offices such as The Extreme Waterfront Offices as well as units at Marina Plaza Office Tower located at the Dubai Marina Mall complex, and offices at Boulevard Plaza, located within Downtown Burj Dubai.

Scandals in Dubai Cast a Cloud

2008-04-30T17:15:00.001+04:00

Some Problem Deals
In Real Estate
May Dent Trust

DUBAI, United Arab Emirates -- This city-state's real-estate market is booming. Massive building projects scrape the sky. Sales and rental prices appear buoyant as investments flow in from other oil-rich Persian Gulf states, the former Soviet Union, India and Iran.

But a series of legal tussles and property-related scandals could dent foreign-investor confidence and tarnish the business-friendly reputation the government has tried so hard to burnish.

Earlier this month, the chief executive of one of Dubai's largest publicly traded developers was jailed. And two disputes involving European and U.S. investors have raised concerns about Dubai's regulatory and legal safeguards.

Foreigner-Friendly

The U.A.E., a collection of seven, semiautonomous emirates, was the first of the Arab Gulf states to allow foreign-property ownership. The country, a major oil producer, remains at the center of the Gulf region's construction surge. More than a third of the estimated $1.2 trillion in projects under way in the region are in the oil-rich U.A.E., according to a report by the London-based Middle East Economic Digest, which tracks building projects.

While Dubai lacks the big oil reserves of its neighbor Abu Dhabi, it has diversified away from petroleum, building a reputation as a hub for tourism, business and transportation. Crucial to that strategy are its development projects.

Dubai has regaled tourists and investors alike with megaprojects such as the construction of Burj Dubai, the world's tallest building, and the planned Palm developments, three separate man-made island clusters in the shape of palm trees.

"The perception of Dubai is based on the Burj, the Palm trilogy and sunshine 365 days a year. So far, you could call it a successful marketing campaign," said Martin Kohlhase, a senior analyst in Dubai for Moody's Investors Service, the credit-rating company. "There is so much at stake."

Marwan bin Ghalita, chief executive of Dubai's Real Estate Regulatory Agency, said he has worked hard over the past few months to improve rule making and enforcement among Dubai's 742 licensed developers. "We are doing a very good job, but there are still lots of things to do to achieve awareness about the rules and procedures here," said Mr. bin Ghalita.

Deyaar Development PJSC said earlier this month that its former chief executive, Zack Shahin, had left the company and was being held by Dubai police. The company, listed on the local stock exchange, disclosed the moves after the Zawya Dow Jones wire service reported the arrest.

Mr. Shahin, a U.S. citizen, is being held as part of an investigation into alleged financial wrongdoing at the company. In a jail-house interview, he told the wire service he was innocent. Mystery has shrouded the case, raising concerns about the extent of its repercussions on the company, one of Dubai's biggest developers. A Deyaar spokeswoman declined to comment.

Another project -- on the Palm Jebel Ali archipelago, one of the three clusters -- also recently became a battleground between a Dubai developer and disgruntled investors.

In 2003, Damac Properties, one of Dubai's largest private developers, sold apartments in a 25-story building, known as Palm Springs. The company targeted British investors, eager to snap up retirement or rental properties.

Last month, Damac sent letters to those investors, saying the project had been canceled, giving few details. When investors pressed, they were told Palm Jebel Ali's government-controlled master developer, Nakheel PJSC, hadn't given Damac suitable land on which to build.

'Out of the Blue'

Damac promised to return investors' money, plus 6% interest, or give discounts on another Damac property. The Palm Springs apartments were sold for about $220 a square foot, according to investors. Current market prices in the same area are as much as $890 a square foot.

"It came out of the blue," said Colin Murray, who lives southwest of London and bought two Palm Springs apartments.

Mr. Murray helped band together 80 investors in the United Kingdom. They filed a formal complaint with Dubai's Real Estate Regulatory Agency. Nakheel denied it had caused the project cancellation, and regulatory officials launched talks between Nakheel and Damac. Damac then told investors that the project was back on.

The agency's Mr. bin Ghalita said Dubai law gives Damac six months to start construction. He said he "would be keeping my eye" on the situation.

The controversy over Palm Springs was just the most prominent in a series of property-investor complaints. The local English-language press has reported stories of middle-class families being bilked by unlicensed brokers or unscrupulous developers who have taken large deposits and failed to deliver. And then there are delays in finishing construction. Damac has completed only 18% of its $30 billion real-estate portfolio.

Financiers in Tussle

It isn't only small investors getting ensnared. U.S. private-equity firm Capital Partners, a real-estate-development arm of McKinley Reserve, of Wisconsin, is in a $1 billion legal dispute with Tecom Investments, a subsidiary of Dubai Holding, which is owned by Dubai's ruler, Sheik Mohammed bin Rashid Al Maktoum.

In 2005, Capital Partners and Tecom signed a contract allowing the Americans to develop a 15-hectare site called Riverwalk. Months later, however, the deal had turned sour. Capital Partners accused Tecom of selling it land that it didn't own, specifically, almost a hectare that was a designated archaeological site.

With $10 million already sunk into the project, Capital Partners refused to make a scheduled second payment to Tecom until the ownership issues had been worked out. Tecom said that missed payment was grounds to terminate the contract. The case is before the Dubai International Arbitration Center, an independent tribunal.

By MARGARET COKER
April 29, 2008; Page C2

The growth of the Real Estate market in Dubai

2008-04-09T11:14:00.000+04:00

The growth of the Real Estate market in Dubai is protected from whatever fluctuations taking place in oil prices based on short and medium term. In fact, it is estimated that higher prices will only spur on the growth to higher speeds. The value of some of the Real Estate projects in GCC, Iran, and Iraq has already crossed $750 billion. Nearly 33% of this is concentrated in the United Arab Emirates with Dubai contributing the maximum. This figure is higher than the combined GDP in the same region, which is lower than $700 billion. According to expert estimates this trend will continue despite the fact that the oil prices are expected to fall in the short and medium term.

One key thing to note is that so far the growth of Dubai has been consistently defying all analysts. Since the past 5 years all sorts of experts have been saying that it is about time the Real Estate market in Dubai stopped being so profitable but so far the bubble has not burst. Though such growth has never been sustainable before no one is able to explain why it continues to thrive in Dubai. The GCC has the 17th largest economy in the world comprising of 500,000 high-income earners and a GDP of $525 billion. The total ½ trillion dollar economy creates more than $500 billion in revenue that is used for investment. This volume is believed to boost the Real Estate and construction sector in Dubai.

With a growth rate of 25% per year the UAE GDP is expected to reach anywhere from Dh 500-900 billion by the year 2010. The UAE has already surpassed Egypt as the 2nd largest economy in the Arab countries. It is now second to Saudi Arabia, which is going through its own explosive growth period. The projects in UAE total at around $225 billion with Dubai holding nearly $125 billion.

The population of Dubai is also expected to go from the current 1.1 million to 4 million by the year 2017 and by 2020 it may exceed 5 million. This growth is expected to put a great strain on the infrastructure. The government has already spent $2.5 working on the road network covering 9,600 kilometers.

Dubai has always been the most popular place to buy investment property in the UAE because of its visitor friendly policies. There are many investment opportunities available to people in Dubai. In the past 2 years other emirates have also noticed the profitability from Real Estate development and they are also beginning to contribute to the growth of the region.
Because of the heavy investment in the tourism, infrastructure has further encouraged the growth of the Real Estate market.

Of course real estate analysts keep calculating the fate of Dubai’s real estate sector, the fact remains there are multiple points of view on the matter. If we go by parallels again, no one should forget the fall of real estate prices in Hong Kong some years ago. But Dubai real estate is way ahead of its Hong Kong counterpart back then.

Source: Al Bawaba
Posted: 08-04-2008 , 14:40 GMT

International City residents complain about lack of facilities

2008-04-05T23:09:00.000+04:00

Residents of Dubai's International City have mixed feelings about their homes and its location. While the area is relatively cheap compared with the sky-high rent in other communities in Dubai, some residents are not entirely happy with the area.

The main issues are parking, on-site facilities, signage and the smell of sewage that sometimes hangs over the area.

F.Z., a resident of the Persia Cluster, has been living in International City for more than two years. "The smell is really bad, especially when there's a wind blowing."

The smell originates from the nearby Al Aweer sewage plant, which reportedly cannot cope with the amount of sewage delivered.

Rashid Al Helli, Nakheel's general manager for International City, said: "Nakheel has commissioned and completed an independent study into the Dubai Municipality Sewage Treatment Plant (STP), which is located close to International City. The resulting report recommended upgrading the STP to accommodate the rapid growth of Dubai's development and following discussions with the municipality, upgrading work commenced on the plant in October 2007. This work is due to be completed by June 2008."

Another issue for some residents is the lack of signage. F.Z. said: "There's no signage to show people how to get here. There's 50,000 people living here now so it should be sign-posted."

Al Helli said additional internal road signage will be in place by the end of the summer 2008.

F.Z. also complained about the lack of facilities. "There's only a small number of laundries, restaurants and shops."

Al Helli commented: "International City is now fast establishing itself as a vibrant community, providing much needed affordable living with excellent facilities for a broad range of people in Dubai. Facilities are continuing to be made available, landscaping is well underway, and community events are regularly being held, including a hugely successful basketball tournament."

Traffic problems are caused by a large number of sewage trucks that pull in on the hard shoulder by the International City main entrance at the Dragon Mart, slowing traffic down and causing a road hazard.

J.H. a secretary from the UK, said: "Big trucks pull in on the side of the road by the main entrance, making cars drive across two lanes. It's very dangerous."

M.M. a resident of the China Cluster for the last two years, believes that the reason for the traffic is a diversion from a currently closed roundabout.

Al Helli said there are currently four access points to International City and the main entrance will be ready before the end of this year. However, despite these issues, Dubai residents are still attracted to the area.

Rising rent

One married couple who wished to remain anonymous, said: "Property prices are so high in Dubai that there are few places left that are affordable. We currently live in The Greens but, with increased rent, it's no longer possible for us to stay there. While International City may be a bit deserted at the moment, I think it will soon fill up as people are forced further and further out of the city just to afford a roof over their heads."

J.H. also moved to the area because of rising rent. "I used to live in Umm Suqeim where my rent was Dh78,000 a year. I I moved to International City where a studio is Dh40,000 a year. It is almost half the price."

Source: Gulf News
By Alice Johnson, Staff Reporter
Published: April 05, 2008, 00:34

Mada'in launches Marina Arcade

2008-04-01T10:00:00.000+04:00

Dubai: Mada'in Properties yesterday launched their Dh1.25 billion flagship project Marina Arcade in Dubai Marina as the first step in building a Dh3 billion portfolio in 2008.

"The Marina Arcade is a fitting tribute to the vision of the marina development, as well as Dubai's meteoric ambitions," said Abdul Aziz Al Awar, chief executive officer of Mada'in Properties.

The tower

Marina Arcade will comprise one 60-storey tower connected to a glass-roofed shopping arcade.

The project will cover a total of 950,125.68 square feet, including seven townhouses with gardens and Jacuzzis on the rooftop of the Marina Arcade. There will also be a range of one-bedroom, two-bedroom and three-bedroom apartments, duplexes and penthouses.

There will also be parking space available for 850 cars.

Facilities

Recreational facilities include a gym, sprawled over three floors and each floor over 38,000 square feet.

There will also be a rooftop garden with a jogging track and a wide range of designer stores and cafes.

The project is due for completion in June 2011 and prices will start from Dh2,050 per square foot from the sixth floor upwards.

Marina Arcade is the first of four projects to be launched this year with a combined value of Dh3 billion.

Source: Suzanne Fenton / Gulf News

Damac buyers consider legal action

2008-03-30T14:51:00.000+04:00

People who bought into Damac's Palm Springs project on Palm Jebel Ali have voiced anger after the company cancelled the development, says a report in Gulf News. Damac says alterations on the Palm mean it cannot build the project, but investors feel the compensation they are being offered is paltry. It has told customers they can transfer their initial investment to other Damac properties at a 15% discount on current values. Alternatively they can get their money back plus interest, but investors say they are only being offered a rate of 6%. Investors, who are already angry over the company's poor customer service, have said they may begin legal action.

Making a killing off-plan

2008-03-27T15:42:00.000+04:00

Indications that margin leverage on UAE brokerage accounts is about to be reduced to prevent ultra-low interest rates creating a stock market bubble are bad news for stock prices, already languishing this year amid the global stock meltdown. But this is just an additional boost for local real estate where supply is failing to keep up with burgeoning demand.

Dubai is increasingly the more mature local property market with high rentals and soaring capital values that are starting to reduce rental yields. Speculators are more attracted to Abu Dhabi where the profits on flipping off-plan properties can be huge, and to the Northern Emirates where developers are unhindered by escrow account legislation and so new project launches continue to flow.

Ironically the same interest rate considerations that are pressuring the authorities into restricting margin lending on UAE stocks are fuelling up local property prices but nobody seems very concerned about this.

Perhaps the authorities are mindful of the fact that absolute property prices in the UAE remain cheap by comparison with other global cities of comparable levels of GDP. There is also a genuine desire to see more real estate investment at a time of booming demand for property, and so allowing investors to make a profit is seen as a good thing.

A new study from the Abu Dhabi Chamber of Commerce and Industry has indicated a shortage of at least 20,000 units in the capital this year and an impending crisis in 2009. And in Dubai the slow completion of projects will also result in a continued shortage of property until at least 2010, according to experts.

NEGATIVE RATE

Meanwhile, the cost of finance is falling. Indeed, with Fed funds at 2.25 per cent and the IMF estimate for UAE inflation in 2007 at 11 per cent the UAE has a negative interest rates of around nine per cent.

Any real estate analyst will tell you the same thing: when it costs less to fund ownership of a building than the inflation rate you are onto a winner.

Moreover, with the UAE dirham apparently firmly fixed to the US dollar, and the US economy in a big mess, this is not about to change anytime soon.

The risk is that an investment bubble will be created in UAE property. But it is still on the way up, and for investors this period of a boom is one when profits are assured and easy. In a rising tide all ships will rise and almost any property investment will do well.

Even fraudulent operators like to trade honestly in such an environment to keep their business moving upwards.

But where are the best opportunities for real estate investment in the Emirates? Some locations will always do best.

The highest returns usually come with the highest risk, and that means new locations that are unproven but have a large upside potential when plans become finished projects and communities.

SURGE IN INTEREST

In Dubai, this accounts for the surge in interest in the Dubailand theme park district, where the value of land deals doubled in the first quarter to Dh38.5 billion against the same period a year ago. A similar rush is evident in the Dubai World Central development around the new Maktoum International Airport.

On the other hand, off-plan property purchases do not pay rental yields, or at least not until they are completed.

For income purposes the 10 per cent yield on a humble one-bedroom flat in The Greens, an early Emaar development, looks highly competitive.

Completed property values are also likely to benefit from something called yield compression, which means that landlords will gradually accept lower rental returns as interest rates fall, and bid up capital prices. This has been true globally with the growth of buy-to-let investment depressing rental yields and pushing house prices higher.

For example that means property prices in The Greens could double and rents stay the same if landlords were prepared to accept a five per cent rental yield instead today’s very high 10 per cent. And by global standards a five per cent yield would be reasonable, especially with US interest rates still on a downward track.

FLIPPING OFF-PLAN

However, the biggest profit to be made in UAE real estate right now is from flipping off-plan apartments in Abu Dhabi. There are plenty of reports of speculators selling units on which a 10 per cent deposit has been paid and doubling their capital in just a couple of weeks.

But you do not need to be a speculator to make money from UAE property at the moment. Just buying a completed apartment or villa in a good location will ensure a much higher return than a bank account would offer, and the chance for a high capital gain thanks to rental yield compression.

Is it any wonder that in this environment local investors are leaving the stock market and going for real estate? There are many options in the dynamic UAE property markets, and for the time being it looks a one-way risk, with not taking part likely to prove an expensive mistake.

By: Peter Cooper

International Property Show Dubai 2008

2008-02-17T13:39:00.000+04:00

Today is the start of this years International Property Show Dubai 2008.

IPS is a major monetary turnover and networking event where deals of billions of dollars are conducted. The show brings together high net-worth individuals, commercial and residential investors and specialized visitors from the property industry. Their extensive medial campaigns promote the shadow globally and ensure maximum exposure.

For th fourth year in succession, the International Property Show has confirmed its position as the biggest transactional property in the region, after the multi-billion worth of deals that capped the past edition, which attracted leading international and regional players from property and real estate market which opened windows of opportunities on a global scale.

More 300 exhibitors from from different sectors: Property Developers, Real Astate agents and Brokers, Banks and Financial institutions, Architectural services, Governmental institutions, Federations & Associations, Insurance Services, Legal Consultancy, Information Technology providers, Investment Brokers and Investment Management services are expected to occupy the 17,000 sq.m exhibition area.

The International Property Show 2008 opens today at the Dubai International Exhibition Centre from from 17-19, February in halls 1,2,3 and 4 from 10:00 am to 7:00 pm.

Abyaar Real Estate and Al Habtoor join forces to build Acacia Avenues

2008-02-06T10:16:00.000+04:00

Abyaar Real Estate Development has signed a Leter of Intent (LOI) with Al Habtoor Engineering Enterprises to build its two residential towers in the Acacia Avenues project in Dubai, the company said. The two towers, Olgana and Hilliana, have a contract value that will exceed Dh700 million and are expected to take 25 months to complete.

Middle East Foundation is currently doing the pilling work for both the towers, which is expected to finish in June 2008 when Al Habtoor will begin construction.

Dr Abdul Elbilly, Abyaar's Chief Operations Officer said that the selection of Al Habtoor Engineering complements Abyaar's vision to deliver high end products to its customer.

"This is our first project with Al Habtoor and it is part of our commitment to our investors to deliver high quality products," he said. " The Hilliana and Olgana projects are currently our most luxurious products and we hope that our alliance with Al Habtoor will be for the long term."

Managing Director of the Al Habtoor Leighton Group, David Savage, said that he was delighted that it was signed the LOI with Abyaar. "Abyaar is one of the leading developers in the region, and Acacia Avenues is one of its landmark projects," he said. Launched by Abyaar in 2006, Acacia Avenues is billed as the first freehold project in Jumeirah.

The Dh2 billion project is an exclusive gated community comprising 50 villas and 6 towers on a 94,000 square-meter site adjacent to Knowlege Village.

With pedestrian access throughout, Acaica Avenues will feature premium facilities including a luxurious health club, swimming pools, spa, squash courts, cafes and shops. The initial phase of the project will see the 38-storey Olgana tower and the 45 storey Hilliana tower, offering a tolal of 285 apartments including townhouses, sky villas and penthouses.

Hilliana will include six floors of high-end serviced apartments. They are scheduled for occupancy in 2010.

Article source: business24-7.ae

New Fees for property owners

2008-01-24T21:18:00.000+04:00

Freeehold property owners in Dubai will have to pay two maintenance fees under a new law to be implemented in three months, an official said.

The combined cost is likely to be considerably higher than the single amount currently paid. Anyone who fails to pay could face stiff penalties.

The first fee, a service charge, will be paid to an association of owners of flats or villas in a building or development. And, as now, a fee will be paid to the developer, although this charge may be lower than at present.

The changes are part of the new Strata Law, said Marwan Ahmed bin Ghalita, CEO of Real Estate Regulatory Agency (Rera). Anyone who refuses to pay the fee to the owners’ association after three warnings will face face stiff penalties.

“The law covers jointly owned buildings,” said bin Ghalita. “It applies to residential and commercial buildings, including hotels and compound villas, in the freehold areas.

“For example, buyers in a freehold residential tower will form an owners’ association as soon as the first flat is registered with Rera. They will then select members of the society to deal with issues relating to the property.

“In a project such as the Burj Dubai there are many residences, offices and hotels. Each property will have a separate owners’ association.

“The new law defines the rights and obligations of project owners, developers, floors owners and flat owners in relation to the use of facilities such as storage areas, car parks, gardens, swimming pools and gates. It also regulates joint services such as building management.”

Bin Ghalita said many owners who currently pay high maintenance fees to developers were receiving poor quality service in return.

“Under the new law the owners’ association will have to pay the service fees into a dedicated account at a bank chosen by the members. The association will then have the option of selecting the company that will look after the maintenance.

“The developer’s fee will be paid through the association and will cover shared facilities such as roads and parks.”

Article Source: business24-7.ae

Dubai Promenade

2008-01-23T22:57:00.000+04:00

Introducing Dubai Promenade, a sophisticated waterfront community creating a virtual peninsula along the Dubai shoreline in New Dubai.

Surrounded by the sea, marina and natural beach, Dubai Promenade offers panoramic views, idyllic walkways, scenic vistas and carefully considered architecture to create a distinctly different environment.

Celebrate the luxuries of watching a majestic sunset, taking an evening stroll on The Pier, window shopping on The Waterfront, or just breathing in the open sea .

Rejuvenate and relax with access to the finest luxurious amenities from the iconic circular shaped hotel to fine dining or pampering spa treatments within walking distance from your private residences.

Although Dubai Promenade has the feeling of a secluded, private resort, it has all the advantages of an ideal location and total accessibility. It is also conveniently connected to Dubai Marina’s “Marina Walk”. Dubai Promenade has its own exclusive 70-berth marina, with direct access to the Promenade.

The community’s residences are elevated above base level and situated on a podium structure. A dedicated homeowner ramp allows for direct access to the podium, which then conveniently routes residents through and exclusive entrance to their car park spaces. Alternate transportation options will also be available, providing easy access for guests and residents

The Promenade Retail Link has over 26,000 square metres of amazing shopping configured in a unique indoor-outdoor arrangement.

The Pier is an area that’s accessible to the public. It’s a great spot to enjoy a meal at one of the cafés, take in the fantastic views or just watch the sun set.

The Waterfront runs the entire length of the Promenade, overlooking a 70-berth Marina. It has a wonderful maritime ambience that includes many fine restaurants and shops.

The cafés, restaurants and specialty shops will form a buffer between the public and private areas of Dubai Promenade.

Dubai Promenade is strategically situated on its own peninsula, directly facing the Gulf, with breathtaking vistas of Palm Jumeirah and along the coast. Dubai Promenade has the distinction of having truly uninterrupted sea water views.

You can marvel at the glow from the lights of an exciting new city. Or turn your back on it all and bask in the glow of moonlight over the quiet Gulf. Only Dubai Promenade can offer such vantage points. Besides its unique waterfront location, Dubai Promenade is also ideally situated in New Dubai, home to the city’s best entertainment, schools, retail, and hospitality offerings.

What makes Dubai Promenade truly special is the way in which all the elements come together to create not just a development, but a community - a place that can truly be your own little world.

The Residences consist of three beautiful tower complexes. Each is inspired by and takes its name from Dubai’s rich seafaring tradition.

The Channel Towers - Al Shimal, Suheili and Al Gharbi are named for local winds.

The Marina Towers - Safeena, Fulq and Sarieh are taken from ships and vessels.

The Beach Towers - Douj and Heirrat are related to the Gulfshore.

Dubai Promenade’s commercial space features The Office Tower, a distinctive property in a prime setting that provides an ideal place to conduct business.

Hospitality space comprises two world-class hotels.

The Icon Hotel serves a fitting centerpiece to Dubai Promenade and an unmistakable addition to the cityscape of Dubai.

The Boutique Hotel offers elegant and convenient lodging. Stunning, graceful and stylish.

Dubai Promenade offers a harmonious union of residential, office, hospitality, retail and commercial space, along with many other points of interest.

Residences:

The Channel Towers - Al Shimal, Suheili and Al Gharbi
The Marina Towers - Safeena, Fulq and Sarieh
The Beach Towers - Douj and Heirrat

Business Sector:

The Office Tower

Retail & Amenities:

The Promenade Retail Link
The Pier
The Waterfront
The Marina

Hospitality:

The Icon Hotel
The Boutique Hotel

The development size built up area is approximately 1,060,000 m2
The expected population is approximately 20,000 for Dubai Promenade with approximately 9,700 residents
The Channel Towers built up area is approximately143,300m2
The Marina Towers built up area of approximately 147,000 m2
The Beach Towers built up area of approximately 90,500 m2.
The Office Tower built up area is approximately 32,835m2.

Dubai Property market investment

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More property investors are purchasing Dubai Property than anywhere else in the world where investors can expect almost a 30% or more return on any property. Dubai is one of the few Arabian states open to the West in terms of culture and social integration and secure in terms of political and economic environments. The Dubai property market is growing and anyone who invests in the property in Dubai will see a rapid turnover in their investment.

Property prices have increased year on year since the launch of the freehold properties to overseas investors but despite this there has been no apparent let up in Dubai property sales. Recent studies suggest that the demand for residential and commercial Dubai real estate is likely to continue for the foreseeable future.

Among the popular Dubai property and real estate development include:

Acacia Avenues
Dubai Marina
Business Bay
The Palm Islands
The World
Dubailand
Downtown Burj Dubai
Jumeirah Lake Towers