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