Masdar To Delay Final Completion Until At Least 2020

Final completion of Masdar City, the carbon-neutral development being built just outside Abu Dhabi, will be delayed until at least 2020, four years after its original deadline.

In an emailed statement released to Dow Jones, the government-backed renewable energy company said the city’s first phase would now be completed in 2015. It also stated that completion on the site would not take place until between 2020 and 2025.

Masdar also added that it may also bring in renewable power from external sources, contrary to its initial plan to use only onsite resources.

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Jumeirah Lakes Towers 60% Complete

About 60 per cent of the Jumeirah Lake Towers (JLT) development has been completed, Dubai Multi Commodities Centre (DMCC), the community's master developer and operator, said on Monday.

This milestone was achieved after Armada Group, a sub-developer, completed the third tower in its mixed-use cluster.

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Service Fee Defaulters Face Losing Their Homes

Dubai homeowners who have failed to pay off the service fee will now have to wash their hands off from their property.

The Dubai Land Department will repossess and auction off the homes of those who fail to pay maintenance fees as part of the emirate’s new strata law, according to an official notice issued yesterday.

As developers hand over the maintenance of shared buildings and communities to homeowners associations, hundreds of owners who owe thousands of dirhams in service charges risk losing their properties.


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UAE Banks To Make Dh3bn In Dubai World Provisions

The UAE banks could book up to Dh3 billion in provisions related to Dubai World's debt restructuring in the second half of this year, dampening the banking industry's performance, according to investment bank Shuaa Capital.

Sofia El Boury, a banking analyst at Shuaa Capital's Research Department, said all of the UAE banks have not come clear on their exposure to Dubai World "provisions which could range between Dh2 billion to Dh3bn in the second half considering the latest data."

Saudi Mortgage Law To Focus On Affordable Housing Shortage

Experts have raised a warning against the lack of low-cost accommodation in Saudi Arabia. According to real estate experts, this shortage in the affordable property will reflect in the agenda of the mortgage law, which Saudi Arabia is planning to implement soon.

“Most new developments are targeting the high-income segments of the population which constitute a relatively small share of existing demand,” said Rakesh Kunhiraman, who is the director at the consulting division of Oxford Business Group (OBG).

Egypt’s Amer Group Invites GCC Investors

Egypt’s leading developer and operator of luxury destination resorts, the Amer Group, has launched a special ‘Triple 10 Offer’ for GCC and Middle Eastern investors to celebrate the holy month of Ramadan. The unique offer provides customers with the opportunity to own an apartment at the Group’s flagship resorts – ‘Porto Marina’ and ‘Porto Golf Marina’ by paying only ten per cent in advance with the outstanding balance paid over ten quarterly installments. The third aspect of the offer is ten days free accommodation at the Porto World Egyptian resort of the purchaser’s choice. Real Estate prices at the resort start from US$255,000.

Porto Marina is Egypt’s premier destination resort, providing 885 luxurious homes, a 379 room 5-star standard hotel, shops, restaurants, cinema, health spa, gymnasium, marina and private beach.

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House prices on Palm Jumeirah sink to three year low

Since the start of the property crash in late 2008, prices have now fallen by nearly 70 percent in some parts of the Palm, though across the development the average drop is believed to be closer to 40 percent.

In May this year the Arabian Business Think Tank forecast that prices on the Palm Jumeirah will plummet another 20 percent in the next year. It predicted that average prices for an apartment on Nakheel's man-made island will fall to just AED1,022 per square foot by May 2011.

Meanwhile the latest data from real estate consultancy Colliers said that house prices across Dubai fell by four percent in the second quarter, according to the latest data from real estate consultancy Colliers.

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Ramadan Kareem Wishes!!!!

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Dubai Municipality To Use RERA Index

Dubai Municipality has come up with a new set of rules for the house owners of Dubai. The owners will now have to pay 5% Dubai Municipality (DM) housing fee, even if the property is vacant, provided there is a DEWA connection.

The Dubai Municipality has also mentioned that it is not ready to withstand any kind of cheating the residents are showcasing by listing rents which are very much below the prevailing market rates for the specific region. According to municipality, it will be forced to use RERA, the Real Estate Regulatory Agency, rent index if any kind of malpractice is witnessed.

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Pier Walk Sold Off By Quintain Estates

Quintain Estates and Development, a British property investor, has sold off Pier Walk which is situated at Greenwich Peninsula to the Germany-based DekaBank. The property is situated in a location which is close to Canary Wharf of London. DekaBank is the leading open-ended fund manager of Germany.

A whopping £97.1 million ($154.4m; Dh567m) was paid in cash by Deka Immobilien GmbH in exchange for the property, which is almost 6% up from the face value of the property that had been evaluated during March 2010. The investment yield will stand at 5.9%.

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Jumeirah To Manage Egyptian Luxury Resort

Dubai-based luxury hospitality firm, Jumeriah Group, has disclosed on Monday, 02.08.2010, that it will be overseeing a new deluxe resort located in Egypt. The luxury hospitality organization has mentioned that a deal has been struck with Egypt’s leading development company, Palm Hills Development for the management of Jumeirah Gamsha Bay Resort. The Jumeriah Resort is situated in the Palm Gamsha resort constructed by PHD on Red Sea, Egypt.

Jumeriah will be managing 250-room multi-purpose hotel of Palm Gamsha. It is a comprehensive community and has 20 artificial islands designed as a sea horse. The resort is situated to the north west of Hurghada airport at a distance of 47 km.

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REIDIN.com index reveals 6.99% increase in Dubai villa sales price between Q2 2009 and Q2 2010

REIDIN.com, the leading real estate information company covering emerging markets has today announced the June figures of its Sales Price Index for Dubai (SPID) part of its INDEXFocus-UAE product, an online database of proprietary real estate indices for UAE designed to accurately track price fluctuations in the residential real estate market.

INDEXFocus is a service dedicated to providing real estate indicies and other benchmark data. Sales Price Index for Dubai (SPID) is launched by REIDIN.com based on the actual transactions in an exclusive partnership with the Real Estate Regulatory Agency (RERA) and the Dubai Land Department (DLD). The service provides the Dubai market with a series of indices and data sets that can help improve transparency across the market and help real estate professionals to benchmark and analyse residential price trends.

Power and water cut from 1,654 Dubai homes in H1

Nearly 4,400 houses in Dubai have been found violating building and construction rules during the first half of 2010 as part of the One Villa, One Family campaign, a senior official has said. Omar AbdulRahman, head of Building Inspection Section at Dubai Municipality, said that 40,707 houses in Dubai had been inspected since start of the initiative aimed at reducing overcrowding in properties in the emirate.

AbdulRahman said about 1,654 houses had had its power and water cut off as a result of violations. He added that surprise visits in coordination with various government departments would continue and fines would be imposed. He said violations included bachelors staying in family areas, and multiple families staying in one house.

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The Nation Investor Planning Two Private Equity Deals

Abu Dhabi-based investment service provider, The National Investor, has plans for closing two “substantial” private equity deals by 2010 end. “We have capital to invest; we generally do about two deals a year and we will do the same this year”, said the TNI private equity director Yahya Jalil.

He also mentioned that TNI was honing on ‘something substantial’ at present, but declined to disclose the details of the massive transactions.

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Abu Dhabi To Have 73,000 New Homes By 2013

According to reports from the UAE newspaper, The National, 20% of the new residential properties being developed in Abu Dhabi, the capital of UAE, will be set aside to meet the housing requirements of middle income group while the rent of a studio will be as minimum as Dh 25,200 per annum. Michael White, who is a senior planning manager at Urban Planning Council, Abu Dhabi, has mentioned that the initial set of homes which are being developed in sync with the new rules will be launched in the real estate market “probably within the next year or two”.

According to the council, out of the 73,000 homes slated to be constructed by 2013, 15,000 will be earmarked for middle income group. The rents will be somewhere around 35% of the income of the household. For those who want to enjoy reduced rent rates, the income should be within the upper ceiling of Dh 252,000.

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Drake & Scull Wins Dohaland Flagship Cooling Project

The 182-million-Qatari-riyal worth design and development contract for the two cooling plants at Dohaland’s Musheireb project has been awarded to Drake & Scull International’s arm, Drake & Scull Water and Power. The firm will be responsible for the comprehensive design and development of these cooling plants which have cooling towers and chiller plants. The district cooling has a refrigeration capacity of 29,250 tonnes.

According to Mohammad Masoud Al Merri, Director-Projects, Dohaland, “We are delighted to award the design and build contract to Drake and Scull for the district cooling plants for the Musheireb project”. According to the contract, the designing and building of hilled water reticulation network having valves and valve chambers, the mechanical electrical and plumbing services, testing and commissioning of the plants will all be taken care of by Drake & Scull.

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Dubai Properties Group Sees Surge in Demand Following Leasing Campaign

Dubai Properties Group (DPG), a member of Dubai Holding, today announced a significant increase in demand for its built-to-lease communities throughout Dubai as UAE residents opt for quality and location at excellent value for money.

The increased demand is the direct result of DPG’s comprehensive six-week-long campaign to promote its built-to-lease communities across Dubai. DPG has received thousands of calls each week driving hundreds of visits to the community’s site offices daily. The comprehensive campaign was rolled out earlier this month across various marketing channels including the radio, print, digital, online and outdoor platforms.

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Dubai Green Buiding's to receive incentives

According to reports from a Dubai government official, the Government is formulating a scheme for providing the green buildings having “green building code” with certain incentives. The plan is expected to be disclosed over the next two months.

“The government is working on an incentive plan for green buildings. Dubai has been on the forefront of introducing green concepts… now the code has gone into printing and will be released in two months”, said Essa Al Mai door, Assistant Director-General for Planning and Engineering, Dubai Municipality.


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Dubai Rental Index Being Revamped

The Land Department of Dubai is working on revamping the rental index, making it more comprehensive. As of Monday, the rent increase calculator on the Real Estate Regulatory Agency’s (Rera) website was not showing the requisite calculations from July 1 onwards with an alert saying, “no rental index available for the selected date”.

The first rent index in Dubai was released in January 2009, complied on the basis of rents during the second half of 2008. Rera says it is not mandatory for landlords to follow the rent index but it is just a guideline or a reference point in case of disputes.

Dubai Rentals

Saadiyat Beach Apartment Construction Gets A Nod

The first phase of Saadiyat Beach Apartments will soon kick off as The Tourism Development and Investment Company, which is the prime constructor of tourism, cultural, and residential destinations in Abu Dhabi, has assigned the development work to Abu Dhabi-based Dhabi Contracting Establishment. About 495 apartments will be constructed in the first phase.

Located in the centre of a Saadiyat Beach community, the plans have been deciphered with Arabian and Mediterranean elements. The first phase is expected to be ready by 2011 Q4.

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Qatar World Trade Centre Construction Commences

The development work of Qatar's World Trade Centre tower in Doha has commenced. The work is expected to take at least two years for completion. This was disclosed to the publicon Monday, 28.06.10, during a press conference which was held on the event of signing the agreement between Qatar General Insurance and Reinsurance Company, which owns theproject and the main contractor, the Arabtec Construction Company.

The blueprint of this building showcases latest technology with a very distinct architecture. The Qatar WTC will be a 50-storey tower which will be the abode of 42 levels of offices, a podium of four floors for conferences, four basement car parking and services and a Sphere Structure, housing a multi-purpose auditorium.

Dubai Rentals

Dubai Real Estate Market Overview

‘Dubai Real Estate Market Overview – Q2 2010: June 2010’ covering the Dubai office, residential, retail and hospitality market segments from Jones Lang LaSalle, the world's leading real estate investment and advisory firm. It reports that tenants have greater opportunities due to increasing availability of space, declining rents, and improved lease terms as the property market begins to bottom out.

Highlights of the overview:

Dubai Real Estate Market Overview
Q2 2010
Market Highlights – Q2 / 2010

• The Dubai office market continues to fragment with a further decoupling between the overall market(which is experiencing increasing vacancies) and good quality buildings in the CBD (where there remainselective shortages). While average city-wide vacancies have increased further (to around 38%), only12% of the 7.5 million sq ft of completed space in single ownership within the CBD is currently vacant.
  

• Retail vacancies have increased to between 8% and 10% as competition intensifies and retailers haveclosed poorer performing stores. This is resulting in a flight to quality and increasing problems (brokentooth phenomenon) in poorer quality centres. The more enlightened centre managers are responding tochanging circumstances by seeking to proactively engage and offer more attractive and flexible terms totheir tenants.
  

• Supply in the residential sector continues to complete, with fewer delays being experienced than in theoffice market. While sales activity has increased and average prices have remained relatively stable,rentals have continued to decline significantly across Q2, particularly in respect of luxury / high end villaand apartment projects.

• The hotel market is the closest to the bottom of the cycle. Increased demand has resulted in a growth ofoccupancies during 2010, but average room rates and RevPAR continue to decline, especially in respectof city hotels.

Dubai Rental Clock – June 2010



















Dubai Rentals

Dubai Real Estate Transactions Grow In First Five Months

According to the Dubai Land Department, the transactions in the real estate sector have showcased a positive growth in the first five months of this year when compared to the corresponding period last year. 3,642 land sales worth Dh 25 billion have been recorded during this first five months. Out of the 3,169 residential properties in dubai that have been sold off since January 2010, 2,927 were apartments, of which 10 per cent have been mortgaged.

The total land area that has been sold off is about 62,815 square feet. According to the Dubai Focus section in reidin.com, in 2009, 4,961 residential lands were sold off. 3,750 mortgages worth Dh3 2 billion with an area of 95,460 square feet have been recorded during the first five month of 2010. According to the department's assistant director-general Mohammad Sultan Thani, "While we may see less value there are many more transactions on a daily basis compared to last year."

Dubai rentals

Risk of Property Bubble of Asia Moderate

According to the international credit rating company Moody’s, even though the property prices have surged, there is only a moderate level of risk from the asset bubbles that have developed in Asia.

According to Deborah Schuler who is the Senior Vice-President at Moody's handling the ratings in Asia, the Middle East and Africa, the steps adopted by the government to ease the market have proven to be effective. "At the moment, we think asset bubbles are confined to the property sector and it's still only a moderate risk," she said.

Dubai rentals

Low Rents Increases Dubai Villas Demand

Reports claim that there is a tremendous increase in the demand for villas in Dubai. The major reason behind this is the steep decline in the rents, which was a result of excessive supply of the property into the real estate market. The real estate firm expects that Dubai will be the abode to 3,500 to 4,000 more villas by end of 2010.

"Villa rentals are looking very attractive at the moment. With a further supply of villas to enter Dubai, rentals are expected to decline although at a slow pace. This could trigger a 10 per cent further decline in villa rents. However, villas are strong assets for Dubai and demand for villas is always likely to be higher than apartments. If there is any correction in rental rates for villas it is only because it is a natural market situation," said Mohanad Alwadiya, Managing Director, Harbor Real Estate.

Emaar Sells Hampton Non-MENA Assets

Dubai-based Emaar Properties has sold off Hamptons International to UK-based Countrywide as a part of its realigning and repositioning strategy. Dubai’s leading construction firm, Dubai Emaar Properties, has disclosed on Thursday that its property management subsidiary, Hamptons International, has been sold off to UK-based real estate company, Countrywide. Emaar had acquired Hamptons in 2006 for Dh 562 million from a Singapore-based firm.
According to a Emaar spokesperson, “As per the agreement, Countrywide will own and operate Hamptons International offices in the UK, Europe and key Asian markets, while Emaar will own and operate the Hamptons International offices in the Middle East and North Africa region”. But no information on the deal is available. But, Emaar will continue to “share synergies” with Countrywide for the promotion of Emaar Properties across the UK and world.

Luxurious Bahrain Properties Facing Price Fall

Asking prices for high-end apartments in Bahrain have dropped 20 per cent compared to 2009 as sales of freehold villas and apartments remain almost non-existent over the last two years, Knight Frank, the global real estate consultancy, said.
Sales of freehold villas and apartments have been almost non-existent in Bahrain over the last two years, which is indicative of the fact that investors are wary in these uncertain economic times and owner occupier demand for luxury property appears to have been satisfied at least in the short term, the report said. Also, the boom times of speculative purchasers enjoying healthy returns on investments by flipping off-plan properties for a profit are a distant phenomenon.
As many of the mixed-use schemes are experiencing construction delays, investors looking to generate rental returns on completed projects are similarly staying away.

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Dubai is still a key investor’s destination

A report from Moody's Investment Service asks the investors to be optimistic about Dubai and reap out of the lower property costs in the city as it still is one among the most preferred investment choices of investors. According to Faisal Hijazi, Business Development Manager, Rating Services and Islamic Finance at Moody's Dubai, revamping Dubai is not an easy and short process. The investors should keep this in mind and then invest in the city.
"But I think the investors should now take advantage of the available opportunities, which are numerous. Dubai still enjoys a good position in this respect and I think there are good investment opportunities in some sectors," Hijazi said.

Dubai Rentals

Dubai Property Lease Rates Facing Sharp Decline

The rates of leasing out properties in June have witnessed a huge dip when compared to the lease rates in April 2010. The surplus inflow of stock into the real estate market has attributed to such a scenario. Rents in the capital are coming down and will continue to do so, especially in the fourth quarter of 2010 and first quarter of 2011.
According to the Dubai lease guide from Landmark Advisory even though the low-quality buildings and other properties located in less renowned areas are victims to this decline in lease rates, the interesting part is that the quality properties in the most-wanted areas are still facing this decline.

Burj Khalifa Owners Not Keen On Selling Their Units

The real estate agents of Dubai have mentioned that more than 70% of the people who own apartments in the renowned Burj Khalifa are unwilling to sell their property, but they are looking forward for a good increase in the lease rates to reap the maximum benefit.
According to the Portfolio Manager at Networth Real Estate, Rano Rahim, increase in rates is one among the major expectations of the Burj Khalifa owners. According to her, "Further, almost 70 per cent of the people are not ready to sell the property as it has a brand value attached for them. They don't mind putting it up for rent in order to earn returns on their property. Right now, people are only enquiring and asking for our advice on rents and sales values. Since their investment is so huge we are trying to get them the maximum returns”.

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Asian Investors Fascinated By Dubai

The investors from India, Hong Kong and Singapore are now under the fascination of Dubai. With the prices of Dubai-based properties registering a growth, they have become the ‘Apple of the eye’ of these Asian investors. According to the Chief Executive Officer of Standard Chartered for Europe, Middle East, Africa and Americas, V Shankar, “Initial signs of interest are emerging among Asian investors to invest in Dubai's real estate where the prices have been pretty attractive following a sharp drop over the past two years”.
A Bank of America Merrill Lynch report had mentioned that the prices of property in Dubai have witnessed a dip of 45% when compared to the peak levels it had registered during the third quarter of 2008. But the HC Securities report that was revealed yesterday is a complete contradiction with this. According to the HC Securities report, the cost of Dubai properties are on a growth mode, that is a complete reflection of the increase in interest people have in the real estate sector of the Emirates.

Nakheel To Clear Off Its Debts Upto Dh 500,000

Nakheel is in the process of paying off its debts of up to Dh 500,000 completely. According to the spokesperson of Nakheel, “All trade creditors have been or are in the process of being paid Dh 500,000, which means that those owed Dh500,000 or less are paid in full”. “Our talks with our partners are progressing and we are confident that an agreement will be reached shortly”, he added.
But Six Construct and Arabtec, when contacted, mentioned that they were not in the list as Nakheel owes them higher figures. "We do not disclose such information, but we are very pleased with our partners' positive response”, said Nakheel, when asked about the increase in the consenting firms after the UAE Contractors Association meeting, last week.

Dubai Rentals

Jointly Owned Property Law

On 10th December 2007, Law No. (27) of 2007 on Ownership of Jointly Owned Properties in the Emirate of Dubai was issued laying the foundations of a “Strata” form of property ownership in Dubai. The Jointly Owned Property Law contemplated the passing of further rules and regulations providing more detail on how the property ownership scheme would be implemented and operate. These rules and regulations were termed the “Implementing Regulations”. The Implementing Regulations (excluding the Survey Directions) have now been published as “Directions”, effective from 13th April 2010.

Dubai Rentals

Greener building products to reduce Gulf?s 66 million tonnes of annual construction waste

The construction industry is a leading contributor to growing waste levels in the GCC, producing a reported 66 million tonnes of waste material a year or around 55 per cent of the 120 million tonnes of waste generated within the region. MAPEI, leading global manufacturer of adhesives, sealants and chemical products for buildings, has revealed that it now sets aside 70 per cent of its annual R&D budget, which translates to USD 105.5 million, for the development of eco-friendly construction products and materials, which not only reduces waste, but also improves installation efficiency at site. The move is intended to support new government policies on sustainability and environmental protection.
Construction waste can contain materials that lead to soil and water pollution due to harmful byproducts such as solvents, plastics and chemical treatments. The use of non-toxic building materials and furnishings, such as low- and zero- volatile organic compound paints and sealants, is essential to constructing or renovating ‘green buildings’, ensuring that they have minimal environmental impact.

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Abyaar sells 50% of Pier 8 Dubai Marina project

Abyaar Real Estate Development, a Kuwait-listed company, has sold 50 per cent of the Dh360 million Pier 8 project in Dubai Marina to an Emirati investor. The value of the deal has not been finalised, but only an agreement to sell the stake has been reached, he added. Industry experts told this newspaper the sales value could be in the range of Dh500 to Dh550 million.
"Although we have been in talks with Kuwaiti banks for getting finance for the project, we decided to sell 50 per cent of our project to a local businessman. He will be part funding the project," the official, who did not wished to be named, said in a telephonic interview.
The 40-storey Pier 8 in Dubai Marina features 234 apartments plus three townhouses and two penthouses. The project has reached the 16th floor, but no new timeline has been set for completion, the official added.

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New property law prevents developers from collecting service charges

Developers according to the new property law henceforth will not be able to collect service charges without being watched by RERA. To collect the service charge they will need clearance from RERA.
These guidelines introduced yesterday, of the Strata Law for jointly owned properties will not allow developers to collect service charges until they receive the clearance from Real Estate Regulatory Agency (Rera). As per the guidelines it is also necessary for the developers with under construction projects to submit their drawings to the Land Department's survey section for approval so that rights to communal areas are defined. In case of breach of rules by owners, Rera also has the right to temporarily administer a development.
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Gulf property outlook negative on oversupply

The supply-demand imbalance remains a key driver of the continued negative outlook for the property industry in the Gulf region, Moody's Investors Service has said. In a new report released here on Monday, the rating agency said that the negative outlook reflects the rating agency's view of fundamental credit conditions in the industry over the next 12-18 months. In the report, Moody's noted that the other drivers of the outlook remain the same as in 2009, namely funding and the preservation of cash, which includes potential disposals of non-core assets, cash collection and debt standstill agreements.
"The supply-demand imbalance in commercial property and to some degree in residential units, depending on the city or country, is likely to grow worse as vast supply meets slack demand and is a major driver of our negative outlook," said Martin Kohlhase, author of the report.

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Burj Khalifa welcomes its first residents in Armani Residences
Burj Khalifa, the world’s tallest building described as ‘A Living Wonder’ now has its first residential community. The world’s first Armani Residences in Burj Khalifa recently welcomed its first residents. Close on the heels of the launch of the world’s first Armani Hotel in Burj Khalifa, Emaar Properties, the developer of the mixed-use tower, has handed over homes to buyers of Armani Residences, who now have the world’s most prestigious address.
Armani Residences is developed through a collaboration of Emaar and Giorgio Armani S.p.A. Personally designed by fashion legend Giorgio Armani, the one- and two-bedroom apartments in Armani Residences celebrate luxurious modern living. Located on levels 9 to 16 of the tower, they offer spectacular views of the city and Downtown Dubai.

Omniyat Properties’ Opus Tower on Track for Completion
Omniyat Properties, one of the region’s most innovative developers, has announced the completion of first phase construction work on Dubai’s AAA-rated commercial and retail tower, The Opus. Construction of the iconic AED 1.7 billion developments is well into its second stage with Brookfield Multiplex, the main contractor, recently erecting the four large capacity tower cranes for the project with two levels of basement already complete.
The Opus is strategically located in Dubai Business Bay, the regional business hub which borders the Dubai International Financial Centre (DIFC) and the Dubai International Convention and Exhibition Centre (DICEC) and is easily accessible to Sheikh Zayed Road and to the Business Bay Metro.

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Investor finds way to flip The World island
Investor sidesteps Nakheel's 'no flipping' rule by putting 20,000 sqm island on the market for Dh42 million. An investor in The World project may have found a way to go around the "no flipping" diktat by Nakheel as he puts an island on sale, the first time one is being sold in the secondary market.
The 20,000 sqm island is up for sale for Dh42 million, according to Streamline Real Estate Brokers, the agency brokering the deal. When contacted about the’re-sale', a Nakheel spokesperson said: "Flipping is not allowed for islands on The World." A financial expert, on condition of anonymity, said if an offshore company owns the island then it can transfer shares to another person/company, thus transferring ownership. "The question is whether Nakheel will accept the new owners," he added.

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Absconding developers in the eye of law

Absconding developers will soon have to face harsh law for their inability to fulfill their obligations. The Ajman Real Estate Regulatory Agency (Arra) has taken the step to file cases, complaining to the police about some absconding developers. Emirate has now turned to law to make developers pay for their frailty. Soon there will be a spree of arrests made for developers failing their contractual commitment. The motive behind such a step is to resolve disputes through intervention.
Arra chief insists on resolving the problem between developer and the investor by encouraging mutual talks and this is providing ample time for considerations for the developers. The agency also seek to help t he investors who have invested in projects without opting for carefulness when choosing the developer and his project.

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Arabtec awarded AED 500m contract to build DAMAC Heights at Dubai Marina

DAMAC Properties has announced that it has awarded the main construction contract for its DAMAC Heights project at Dubai Marina to Arabtec. The AED 500million contract was signed this week and work is expected to commence on site as soon as Zetas complete the enabling works.
DAMAC Heights will be one of the company’s most iconic supertall projects and will occupy a prime position overlooking the Palm Jumeirah. It is within walking distance of another of DAMAC’s flagship projects, Ocean Heights, also being constructed by Arabtec. Work on Ocean Heights is due to be completed later this year.
In announcing the contract award, Chairman of DAMAC Properties Hussain Sajwani said: ‘We are delighted to announce that main construction work will be underway soon at one of our most significant projects in Dubai. We are pleased to work once again with Arabtec who are known for their ability to deliver architecturally challenging buildings and their consistent and solid reputation in the construction industry.

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Nakheel Developer won’t hike deposit fee for new sales

Master developer Nakheel continues to consolidate its project portfolio though has denied any raise in non-refundable deposit amount for new sales reservation contracts. This counters reports within the industry that Nakheel had stopped consolidation offers while it has increased the non-refundable deposit by five times of new contracts.
As per sources, Nakheel will determine projects that will remain on hold towards the end of the re-capitalisation process. "Projects have been prioritised following an assessment of construction stages, cost of completion, customer collections, and market supply and demand. We will have determined, which projects are likely to remain on hold towards the end of the recapitalisation process," the spokesperson said.

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Majid Al Futtaim Properties to invest $3.5bn in four new shopping malls

Majid Al Futtaim Properties, the region's premier developer of leisure property and shopping malls, announced its plan to develop four new shopping malls in the UAE, Egypt, Syria and Lebanon. The four new shopping malls represent a total investment by Majid Al Futtaim Properties of $3.5bn over the next 5 years.
Majid Al Futtaim Properties is currently operating 10 malls across the Middle East and North Africa ("MENA") region, which have a combined Gross Leasable Area ("GLA") of 800,000 square metres and which, in 2009, attracted more than 120 million visitors. The four new shopping malls are scheduled for completion by 2014 and will increase Majid Al Futtaim Properties' total GLA to more than 1.3 million square metres.
The announcement was made on the opening day of RECon Middle East & North Africa 2010, the region's major exhibition and conference for retailers and real estate professionals that runs from 2-4 May 2010 at Jumeirah Beach Hotel Convention Centre.

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40% of Dubai Rent dispute cases solved in 2009

Dubai Rent Committee had announced a drop in rent dispute cases in Dubai this year compared to previous year. About 40% drop has been registered this year. A total of 5,373 Rent dispute cases were registered in Dubai in 2009 against 9,000 cases in 2008.
This year Q1 had 1,119 rent disputes resolved. The first quarter of 2010 witnessed 943 rent dispute cases in Dubai opposed to 2,003 cases in 2009 and 1,635 cases in 2008 during the same period. But there was an increase in the total number of rent dispute cases resolved in 2009 by 10 per cent. As per the committee 6,737 cases were resolved in 2009, while the committee resolved 6,069 cases in the previous year. In the first quarter of this year alone, Dubai resolved 1,119 rent dispute cases. A decline in the new rent cases is mainly due to the fact that more people are now adhering to their rent contracts. People are understanding the law and abiding by their contracts. The main reason for the dispute pertains to landlords or tenants breaching their rental contracts.

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Dubai off-plan unit sales shows positive trend

Dubai real estate is getting a facelift with units that are almost nearing completion. Good properties at good location have already become the preferred choice though it’s only lack of finance that is proving to be a crunch at this moment. Limited off-plan sales activity is getting hindered due to lack of finance by lending firms, project delays and high prices. But experts see sales picking up on a positive note when compared to ‘dead market'.
Better Homes recorded five per cent of its overall sales in the last month for properties close to completion. Better Homes has sold single off-plan units in various developments in Dubai.
Hesham El Far, CEO, Coldwell Banker, said that around 15 per cent of our overall monthly transactions can be attributed to properties nearing completion. Off-plan sales transactions are mostly a second sale being purchased largely by cash buyers since mortgage is practically nil for these properties. If a property is more than 70 per cent completed and is in a good location, then buyers are going ahead with buying the off-plan property.

Abu Dhabi's 2030 vision is Cityscape centrepiece

A huge scale model of how the capital of the United Arab Emirates will appear in 2030 was unveiled today and forms the centrepiece of this year's Cityscape Abu Dhabi. The 23 metre by 17 metre display is the biggest single model on show at Cityscape, the largest gathering of real estate professionals in the Middle East so far this year being held at the Abu Dhabi National Exhibition Centre until 21 April 2010 under the patronage of HH Sheikh Mohammed bin Zayed al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
Sheikh Hamed Bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince's Court, viewed the 1:2000 model unveiled on the stand of the Abu Dhabi Urban Planning Council during an opening tour of Cityscape. Sheikh Hamed is also Managing Director of the Abu Dhabi Investment Authority, the largest sovereign wealth fund in the world and chairman of General Holding Corporation, the parent company of Emirates Steel.
The model showcases major urban planning initiatives, bringing together economic, cultural, environmental and social aspirations of Abu Dhabi in a single format. The model covers an area from the Corniche on Abu Dhabi's main island to Shahama, Mussafah and Al Falah on the mainland and includes the islands of Saadiyat, Yas, Lulu, Reem and Sowwah.
Property management

Investor beginning to show confidence in Real Estate

Investors over the past six months are showing interest in real estate markets across the Middle East and North Africa (MENA) region. Investors are hoping for the property prices to rise fairly in the coming years. Real estate is showing signs of maturity and greater market stability and they are holding on to this factor.
Saudi Arabia and Egypt are the top choice of the investors owing to large local indigenous populations which will be the drivers of real estate demand in the near term. Abu Dhabi is also seen as an interesting market in the long term on the strength of energy rich economies and a definite long term vision. Dubai and Abu Dhabi scored as the highest MENA rankings in terms of city competitiveness.
A survey recorded forty percent of the investors with the notion that Saudi market was already recovering and 30 percent proclaimed the same for Egypt. 75 percent viewed that Dubai’s real estate market would not see recovery for at least 12 months or may be for the next two years.
Investors consistently scored Dubai highly on factors such as infrastructure, connectivity, real estate transparency, quality of life and other attributes.

Dubai Marina rules as online buyer’s ideal location

Renters and buyers in Dubai prefer Dubai Marina as their choicest location, reveals a study. People searching for place to live in the website counted for 17.5 percent seeking the development. Dubai Marina was followed by Jumeirah Lake Towers (16.1 percent), Palm Jumeirah (13.1 percent), Jumeirah Beach Residence (7.3 percent) and Arabian Ranches (6.8 percent). Dubai Marina from developers Emaar Properties has topped the rankings in third quarter in a row.
As per the reports Downtown Dubai is also gaining popularity and has jumped five places. Dubai Silicon Oasis owing to its declining price was also finding prominence. Both these areas attracted 4.7 percent and 2.2 percent of searches respectively.

Dubai rentals

Downward trend for house sales in Dubai continues

Dubai real estate won’t see a rise in Real estate transactions for the year 2010. A new study reveals that’s prices will dip further before stabilizing in 2011. Kuwait Financial Centre (Markaz) predicts that an increase in the property sector would correspond with a return to population growth in 2011. The report says that the segment contracted in all metrics such as transactions, rentals and prices and is expected to contract further during 2010.

Markaz anticipated the rental volatility to exist with supply of homes continuing to outstrip demand in the short term. Also the house loan lending would continue to be on the bottom this year due to Dubai banks settlement of the Dubai World debt standstill.

property management

Dubai residential rents continues downward trend

The prices for leasing residential property in Dubai have still not reached a bottom, despite declining around 45 percent in some areas from their 2008 peak. Cluttons’ report into the Dubai property market during the first quarter of this year revealed that residential rents had dropped by an average of 5.5 percent during that period. Property sales were down by an average 2.9 percent. The research note added that the glut of new homes coming online in Q2 would see rent prices dropping still further, and added that the appetite for off-plan development had showed no sign of returning.

Meanwhile, the report also said that commercial rents have slipped by fully 25 percent, and Cluttons warned that only established locations such as DIFC and some areas within TECOM are maintaining over-90 percent occupancy levels. The real estate agency said that it estimated only twenty percent commercial occupancy levels in the newer Jumeirah Lakes Towers district. As free zone landlords are not allowed to lower the cost of rents below AED140 per square foot, the report also indicated that contractual ‘rent-free’ periods – of as much as six months - are becoming more and more commonplace.

dubai realestate

Burj Khalifa to enhance 2010 revenues

Dubai's Emaar Properties announced that revenues stemming from the sale of units at Burj Khalifa, the recently-opened, world's tallest tower, will boost the company's 2010 revenues. Emaar, 31.2 per cent owned by the Dubai government, is the Arab world's largest listed developer. It posted third-quarter revenue of Dh1.95 billion. As Emaar recognises revenue and profits on delivery of the project, the revenue relating to the units sold in Burj Khalifa will be recognised in 2010 on delivery, spokesman said.

Emaar has a joint venture with Italian luxury company Georgio Armani to develop hotels around the world, including one at the Burj Khalifa.

Real estate in dubai

Real Estate Market Looking Stable

Dubai real estate market is reaching stability with positive signs in rental of 1 per cent in January and 6 per cent in February. This is the initial positive upward trend that can be noticed after nine months of decline. Rental prices in Dubai stabilised last November and recorded strong gains until February with a 6 per cent month on month increase. Prices were up by 6 per cent in February after a 13 per cent drop following the Dubai standstill announcement last November.

The survey suggests that areas which witnessed the highest number of handovers recently actually saw declines in February; namely Downtown Burj area with a 5 per cent decrease and Dubai Marina with 10 per cent. According to the report, rental rates in Dubai were helped by the spillover from neighbouring emirates (particularly Abu Dhabi) which anecdotal evidence suggests gained momentum last year. The report said mortgages have continued to tighten ahead of the Dubai World debt restructuring proposal. Mortgage volumes fell to 11 per cent in February from 25 per cent in September. Cash buyers were seen to be picking up smaller, more affordable units in areas such as International City (up 9 per cent), Greens (up 11 per cent) and Jebel Ali (up 10 per cent). The report said that the restructuring of Nakheel which controls 50 per cent of expected supply is predicted to lead to further project delays and cancellations supporting sector dynamics. However, expected recovery in the global economy and stronger growth in the UAE this year is likely to support demand.

Real Estate Market Looking Stable

Comparatively Palm property prices still high

Apparently Palm Jumeirah has cut its price by 40 percent from their August 2008 peak. But according to Real Estate expert, units on the Nakheel development are still overpriced. Compared to London, Paris and New York, prices on Palm are still high. In comparison to last year, prices for incomplete units were down by 50 percent and that rents were down by a quarter - favourable to other freehold areas in Dubai.

However based on the number of units due to complete over the next two years it is unlikely that prices will increase. Despite the difficulties faced over the last 18 months the UAE remains a commercial nerve centre of the Middle East. After a period of consolidation of between three and five years prices are expected to rise again. Established areas such as the Springs, Meadows, Jumeirah Islands and the Palm had performed well historically and would continue to see a high turnover of transactions. Dubai World announcement is expected to bring a positive period for the UAE.

property prices

Projects delayed owing to poor planning

The blame on lack of funds holding progress of projects has been proved wrong in a survey which claims that it’s the lack of co-ordination between agencies in the GCC which is responsible for it. In spite of cost and schedule overruns it is completion of a project that makes it successful. A team of professors at the UAE University asked a good sample of sponsors or clients, government departments, contractors, consulting and management firms whether their projects were successful. Despite the many delays and doubling or trebling of total costs, 100 per cent of them replied, "YES".

Lack of funding was not a reason for these delays, the survey, 'Management of Transportation Infrastructure Projects in the UAE', found. Rather, faults are caused by management issues and lack of timely co-ordination among many government agencies, it said. Initial studies revealed that there are frequent disturbances in the decision-making process, which starts from planning, scope assessment, designing and tendering and ends in construction. Some projects that were at the designing phase were sent back to the planning/study phase, while some that were at the construction stage were returned for redesigning. Planning, the most vital part of any project is often not done properly, leading to complicated rework during the process.

Dubai real estate

Dubai home prices slides further

Dubai real estate performed the worst in the current year gliding further by 45 percent. The report is from The Wealth Report 2010 produced by Citi Private Bank and property consultancy Knight Frank. It also showed that Dubai was the biggest faller in the list of the world's 40 most influential cities. The emirate is facing the blow from global economic crisis and plummeted three places to 31 in a list based on their economies, political power, knowledge and quality of life.

New York was the top scorer taking over London's top spot this year, as the UK capital also struggled with the financial downturn. High-end home prices faced turmoil all over but Dubai prices were by far the worst hit and Dublin seeing the second highest declines (25 percent). Luxury home prices rose more than 40 percent in the Chinese cities of Shanghai, Beijing and Hong Kong.

Dubai home prices slides further

Dubai mortgage market soars by 75%

Dubai mortgage market is seeing an upward surge by 75 percent for this fiscal year. Dubai Land Department has made the comparison with same period last year. Official Dubai Land Department (DLD) has given the value based on registration on the system between January 1 and March 21 AED9.99bn ($2.72bn). Comparison shows increase in value by 75 percent to last year when AED5.68bn ($1.54bn) worth of new mortgages was processed.

Mortgage advisor Khadija Ebrahim said this is definitely the case on the ground in the market and that they have seen an increase in the number of inquiries from customers looking for mortgage finance. Number of Dubai residents seeking mortagages is higher and the most popular locations are Emirates Living, Jumeirah Lake Towers and Dubai Marina. The increase was basically ue to a low base last year, and now that the banks have relaxed a bit and are offering better terms and conditions in order to attract customers. Interest rates have also come down and are as low as 6.75 percent, compared to an average of 8.5 percent last year.

Union Properties willing to sell assets

Dubai's Union Properties is willing to sell all any of its projects if it receives a fair price. Union Properties, the third-largest developer in the Gulf Arab emirate has been hit by the global downturn, which has sent prices in Dubai's once-booming property sector tumbling some 50 percent from their peaks in 2008. The developer has received offers for its Ritz Carlton hotel in Dubai which the debt-laden firm is hoping to sell for about AED1.5bn ($408.4m).

The company's complete projects have achieved their investment targets and they are being offered to investors for sale. Buyers are mainly investment companies and individuals who are looking to buy complete and rented properties with an income of 7-8 percent. The funds raised from asset sales will be used to repay financial commitments and finance ongoing property projects. The firm posted a third consecutive quarterly loss on provisions for contracting and property revaluation. It has 6.5 billion dirhams of outstanding debt, of which 2.8 billion had been rescheduled for payment to 2011 from 2009, with the remainder maturing in the long-term.

Dubai realestate

EPG repurchasing units in Palm Jumeirah

Residential and tourism project developer Emerald Palace Group (EPG) is considering repurchasing units of Kempinski Hotel Residences in Palm Jumeirah. There are only 20 units up for sale in the secondary market out of the 244 in the project which made it make the move to buy the units and putting them on rent. The work on the project begun on 2007 and it consists of 244 units, including a mix of high-end suites, residences, penthouses and royal villas. Recently EPG delivered its 100th unit to owners of the development.
The Kempinski Palm Jumeirah Residences range in size from 165 square metres to 1,300 sq m, all including terraces or balconies. The developments consists of a mix of two-, three- and four-bedroom suites and residences, a selection of penthouses and townhouse-style royal villas with their own private pools and gardens. EPG has a strategic partnership with Kempinski Hotels. The developer has commenced work on Emerald Palace Kempinski in Palm Jumeirah.

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Property market on the way to recovery

Dubai’s property market will recover by the end of 2011 as mortgages become easier to obtain and more people move to the city. Dubai, the second-biggest sheikhdom in the UAE, experienced the world’s worst property slump during the global recession, with selling prices falling by more than 50 percent and project cancellations exceeding $300 billion. To sustain itself, Dubai Pearl is relying on $1.5bn paid for apartments in advance and another $500 million that has been committed by Al Fahim Group.
Dubai Pearl is building four 73-story towers connected by a single roof less than a mile from the emirate’s palm-tree shaped man-made islands shaped like palm-trees. The project, which has the same name as the company, will have 20 million square foot (1.9 million square meters) of hotel and residential space. MGM Grand, SkyLofts, Bellagio, and Baccarat are among the six hotels that will have 1,400 rooms. The main structure will be surrounded by an artificial beach and low-rise buildings containing malls and theaters. The project is scheduled for completion 2013.
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Low rents lures people to Dubai

Dubai has become more competitive and attractive for those working in the UAE due to the reduction in residential rentals. Residents moving to Dubai from locations such as Abu Dhabi and Sharjah are most likely reason for a 7.6 percent rise in the emirate’s population last year. Jones Lang LaSalle (JLL), an expert from real estate consultancy Jones Lang LaSalle has claimed, “The major driver for this ‘Dubai Effect’ has been the reduction in residential rentals, which has resulted in Dubai becoming more competitive and therefore attractive for those working in the UAE. “The other component of the ‘Dubai Effect’ is an increase in the number of households, as falling residential rentals are reducing the need for several households to share the same unit. The total demand for residential units is therefore increasing more rapidly than the overall population of Dubai.”

While the increase in demand was certainly good news for landlords, it was important to recognise that it is very dependent upon the level of rentals, with increased demand being driven largely by falling rental prices. Jones Lang LaSalle has said it expects rentals to stabilise in some projects and locations in 2010, but that the overall level of residential rentals will decline further in 2010.

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