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.

More Information

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.
More Information

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.

More Information

Burj Khalifa is the world's tallest building

Burj Khalifa has surpassed Taipei 101 which was the world’s tallest building by 320 metres. Burj Khalifa with a height of 828.00 meters has been declared the world’s tallest building by the Chicago-based The Council on Tall Buildings and Urban Habitat (CTBUH). CTBUH has received and examined detailed drawings of the Burj Khalifa submitted by building owner Emaar, and can now confirm the official building height at 828.00 meters (2716.54 feet), as well as the title of ‘The World’s Tallest Building’.The Burj Khalifa has become the 16th building to hold the title of the “World’s Tallest” and stands an additional 773 meters higher, or 15 times taller, than the world’s first “tall building” (the Home Insurance Building completed in Chicago in 1885). The Burj Khalifa exemplifies four major trends in current tall building construction, with respect to location, function, structural material and height. The building also contains a record-breaking number of floors, at 163; a record previously held by New York’s World Trade Center Towers at 110 floors. The Burj Khalifa’s observation deck becomes the second highest in the world at 452.10 meters (1483.27 feet), surpassed only by that of the Shanghai World Financial Center at 474 meters (1555.12 feet).

Leveled platform for developers and investors

Moves are being made to make Dubai Real Estate market more transparent and mature to allow developers and investors get a leveled platform to resolve their disputes. The executive regulations come at a time when it is needed by the market and will help spell the way forward. It is a very positive step for the industry as a whole. Those who have gone ahead with the construction of their projects, require regulations to protect them from speculators. The decree empowers the Land Department in Dubai to cancel projects and offer mediation service for disputes between developers and buyers.
Currently, the Real Estate Regulatory Agency (Rera) already has a mechanism in place to check on the progress of the projects in Dubai. So with respect to the status of the project, this information is already available. The issuance of the new decree will put an end to the impasse existing between the developers and buyers.

More Information

Saudi mortgage law to control price rise

Mortgage law in Saudi Arabia is likely to change the entire scenario in investment. The long awaited approval will bring a sea change in terms of property prices, bank credit and investment in the sector. The mortgage law has become crucial to stabilise the property and construction sector, which is one of the most important components of the gross domestic product in the world's dominant oil power. The implementation of the law will bridge the widening gap between housing demand and supply caused by relatively low supply and population growth. The pillars of the real estate market in the country in the coming period will be based on growth in domestic demand, correction of prices and the approval of the mortgage law, which will help curtail price rises. A decline in the prices of building materials is expected along with continuation of government construction projects and an acceleration of bank credit to the property sector.

High rents in Saudi Arabia, like in the other Gulf nations, were among the key reasons for soaring inflation in 2008 along with a surge in imported products, food prices and strong domestic demand due to high oil prices. Despite a sharp decline in inflation in the kingdom in 2009 from a record 9.9 per cent in 2008, they remained relatively high due to rising rents. Analysts expect high rents to remain the main reason for inflation this year.

More Information

Occupany in Downtown Dubai rises

Downtown Dubai is soon becoming an ideal investment zone in Dubai with self-employed people making flourishing moves to buy properties there. From a sales perspective, average current prices for properties in Downtown Dubai is around Dh1,100 per square foot to Dh2,600 per square foot. These selling prices don't include for Burj Khalifa, but only at the surrounding developments of the tower. Also lower rentals have pushed occupancy levels to almost 70 per cent there. Occupancy has increased since rentals have become more affordable. With the exception of recently handed over loft apartments, most of the projects are more than 70 per cent occupied.
Due to the higher ratio of studios and one-bedrooms within Downtown Dubai, compared to two, three and four-bedrooms in the Downtown District, the ratio and the proximity of the Downtown Dubai district to the Dubai International Financial Centre (DIFC) and the main business district of Dubai is making it ideal for single executives, couples and small families. Investors have moved within one project and another with some families moving into the development as a result of falling rents. Current rents for studios range between Dh70,000 and Dh110,000 per annum; one-bedroom apartments between Dh80,000 and Dh150,000 per annum and two-bedroom apartments between Dh110,000 and Dh240,000 per annum.
More Information

A move to boost real estate sector

Here comes a relief for both buyers and property dealers in the real estate market with banks and finance companies in the UAE taking a step to reduce their home loan rates. The mortgage rates have been high for more than a year now and this recent move is expected to broaden the buyers' base and boost the sagging fortunes of the country's real estate sector. Property developers who are scheduled to release thousands of finished property units into the UAE market this year will appreciate this move. Also a number of lenders have slashed mortgage rates for new and existing clients.

Quite a many banks have reduced their charges and increased their loan-to-value ratio [LTV] since the beginning of this year said Dean Biddulph, Senior Mortgage Advisor at Independent Finance.

More Information

Specialist funds aiding UAE realty market

Things are looking better gradually for UAE Real Estate with interest from specialist funds boosting the market at a modest pace. Reports suggest a better trend in the business in fourth quarter 2009 when compared to third quarter 2009. The number of distressed assets in the UAE will increase, but not many were reported in the fourth quarter. The quarter saw multinationals and financial institutions in selected Asian cities display a renewed willingness to expand. The unemployment rate declined for three consecutive months in Taiwan, Hong Kong and Japan reflecting the overall improvement in the Asian labour market.

However the recovery of demand in the office sector remained lukewarm as many companies continued to adopt consolidation and decentralization strategies to reduce real estate related costs. With the market looking more positive, landlords of prime buildings in leading Asian cities started to take a firmer stance towards maintaining present rental levels. The slowdown in rental decline expected in the third quarter failed to materialize and little improvement was seen, although the reduction in rents began to stimulate tenant interest in certain selected buildings.

More Information

RED HOT OFFER

Residential Building
2B + G + 8 + Roof Top
Studios & 1 Bed Room Apartments
More Information>>>>>>>>>

Display of Cedre Villas to begin

AED1.55 billion Cedre Villas development will soon be on the display at Qatar International Investment and Real Estate Exhibition (Q-REX 2010). The fifth edition of Q-REX is scheduled to take place from 3- 6 March at the Qatar International Exhibition Centre in Doha. Dubai Silicon Oasis Authority (DSOA) which made the announcement had launched sale and lease of 400 of the 1,047 units from its Cedre Villas project at Cityscape Dubai in October 2009.
Cedre Villas project consists of executive and twin villas, townhouses, with high-quality finishing, stylish designs, and first-class amenities to suit every customers’ preferences. The units are built in three distinct architectural models – Modern, Traditional, and Arabic. The Urban Community features an exclusive club house, a shopping complex, health and leisure facilities, swimming pools, schools and academies, hospitals, play areas and other necessities. It has been modeled as a city within a city, allowing the residents there to live, work and play.

Know more