Property Advice Dubai-News

Mortgage Providers Focus on Completed Projects

2010-10-25T00:01:00.000-07:00

The concept of retail lending is no more than a drip, whatever mortgage offers are available in the market, seem to be directed at the completed property projects or to those properties which show a clear sense of completion in future. The mortgage providers don’t approve that development that does not meet these guidelines. The managing director of Home Matters, a mortgage consultancy, Jean-Luc Dubois said: “There has to be a clear line of sight as to when construction would be complete. It's the stance all the leading mortgage providers active in the market have adopted, and there aren't that many of them.”

Now the developer is entirely responsible for getting mortgage providers for his property in Dubai. It is also a kind of reminder to the developers that they should not treat the cost cutting exercises that would decide the final build quality. The executive vice-president and the head of consumer assets at Abu Dhabi Commercial Bank, Sundar Parthasarathy said: “The quality of what's being built has to speak for itself, and it's the responsibility of the developer to convince the homeowner and the mortgage company this is indeed the case.”

As the Tamweel situation is cleared, followed by the announcement by Dubai Islamic Bank clarity is shortly expected on Amlak, however, the industry experts are saying that the entire process will be slow. As there are more providers, the prospective buyers could hope for some competitive mortgage rates. Parthasarathy said: “The majority of the offers could end up between 5.75 to 6.5 per cent, but there will be other factors that will also dictate this — the client's credentials, the development and other factors.”

Parthasarathy further added: “Mortgage providers are more willing to associate with clients who want to acquire their rental property into an owned one.” “For the lender, there's a history that can be tracked of the client with the property, and that's a very comfortable situation to be in. There are no major numbers of those moving from rental to owned accommodation, but it's a trend that will slowly build up. We are starting to see a steady flow of applications related to such purchases.”

Falconcity Focuses on finishing the First Phase

2010-10-20T22:12:00.000-07:00

A Falcon city of wonders has been created in Dubai and its first phase is about to be completed comprising a total of 150 villas out of 320 are bought from phase I of the residential section. The chairman and CEO of Falcon City of Wonders, Salem Al Mousa said: “We are in full swing. We have given the tenants their properties which they are currently living in and we're working on finishing 200 more villas in phase one in the next year and a half.” 80 percent of the infrastructure of the entire project has been completed including the power station and the Dewa within phase one.

Moreover, the community centres within the same phase are expected to be completed in a year. Currently, the work on sewage treatment infrastructure and on some of the lakes is going on. The other parts of this master development are also being developed, however they are under different stages of construction. The Eiffel Tower, the Pyramids and three cities within the development are waiting for approval by Dubai Municipality.

Al Mousa told Gulf News: “Everything takes time. We are constantly revisiting sections and dealing with the issues that have taken place." The Falconcity of Wonders is a huge project located in the famous Dubailand. It features structures based on the renowned architectural marvels of the world and famous sites including the Eiffel Tower, Pyramids, Leaning Tower of Pisa, Taj Mahal and the Hanging Gardens of Babylon.

The entire city is shaped in a way to showcase the falcon, as the emblem of the UAE’s heritage. This project is spread across 41 million square feet combining several residential, educational, commercial and entertainment facilities along with a theme park also being built.

Dubai Properties Group to Complete 4 Diverse Developments in 2011

2010-10-18T21:18:00.001-07:00

Dubai Properties Group is a member of Dubai Holding announced the completion and handover of four retail, leisure and residential developments in the coming year 2011 in order to expand the diverse real estate portfolio. The four projects which are expected to be completed by the year 2011 including the Remraam residential community which is in the heart of Dubailand, Bay Avenue at The Executive Towers in Business Bay, The Villa Phase II and the first Beach Club at the famous Jumeirah Beach Residence.

These upcoming projects are complementing the existing DPG real estate portfolio of 16 developments. 7 communities are launched at some of the prime locations across Dubai in the past 12 months. It includes The Executive Towers at Business Bay, Al Waha and The Villa in Dubailand, Shorooq and Ghorrob in Mirdif and Nuzul staff accommodations in Jebel Ali.

The Group CEO of Dubai Properties Group, Khalid Al Malik said: “At DPG we endeavor to contribute to the development and growth of Dubai by providing, affordable, accessible and diversified communities across the Emirate. The completion of these four projects will strengthen our unique mix of real estate and demonstrates our commitment to delivering an extraordinary range of communities at every price range in every corner Dubai.”

The Villa Phase II comprises of 219 Spanish-style villas along with lavish open spaces for experiencing outdoor living. This is one of the exclusive landscapes set in Dubailand. Moreover, the residential units in Remraam are planned as per the low-rise Moorish architecture and lush landscaping. This development includes spacious studios, 1, 2 and 3 bedroom residences with private gardens, extended balconies and other facilities. Bay Avenue is a 175,000-square foot retail development emerging as a boon for the residents staying at The Executive Towers. There will be a two level outdoor space featuring restaurants, cafes, boutiques etc.

The Dubai Properties Group’s diverse communities are situated in prime locations across the emirate.

Miniature Versions of Properties Give Buyers a Glimpse of Project

2010-10-12T21:19:00.001-07:00

Prior to the construction of any real estate project in Dubai, a miniature of that project with the same look and feel which is usually captured with a three dimensional artwork or a 3D model of the building. There are model making firms in Dubai which might also deal in creating miniature versions of the projects; however, these are not small businesses. They are also showing their presence in this year’s Cityscape. Before a real estate project is being constructed, the brokers and the developers promote the other components associated with it.

The Group CEO of Tamani hotels and resorts, Sanjeet Joher said: “Models of projects are very important. Having the right model is the key ingredients in making the customer buy property. The model showcases how the finished project will look and give them a better idea of what they're buying.” Before presenting it to the customers, Tamani constructs a model to showcase. Moreover, for most of the buyers these scale models and the artist’s impressions are the actual points of references. It helps them to take the right decision while purchasing a property.

The executive director at Arabtec Eastern Model, Raja Hani Ghanma said: “Business has slowed down for us here in Dubai, however we've got several jobs in Abu Dhabi and we've been quite busy with the rest of the Gulf, primarily Saudi Arabia, which has been our biggest market over the last two years.”

With the massive construction boom, this model business of real estate projects was at its prime time, however with the slowdown, the times have changed. For a project whose miniature has to be designed the company needs a detailed three dimensional presentation which provides the required technical information to the model makers.

Upcoming Projects at Cityscape Global 2010 by Bloom Properties

2010-10-10T21:16:00.001-07:00

Bloom Properties is a master developer and of the communities of Abu Dhabi based National Holding announced two projects that are on the verge of completion in the year 2010 and is offered for leasing during the third consecutive participation at the Cityscape Global 2010 in Dubai. This is one of the largest and important business to business events across the world and this time the ninth edition is going to take place in Dubai starting from 4-7 October at the Dubai International Convention and Exhibition Centre. If we talk about Bloom Property projects, Downtown Residence and Noor Residences in Al Ain comprising of 26 low rise buildings ad will be highlighted at the event.

Construction activities on Bloom Gardens have already instigated. Phase I of the development is scheduled for delivery by the third quarter of 2011 including 123 residential units which is a mix of townhouses, detached villas and semi detached villas. The CFO, Saed Arekat of Bloom Properties said: “Cityscape Global in Dubai is a great platform to communicate with real estate developers and investors that will open doors for great investment opportunities in UAE and the region. We believe the event will offer investors a fresh perspective on the diversity of our project portfolio and encourage them to be part of our unique developments.”

The event comprises of 38000 participants with over 200 exhibitors and hundreds of real estate projects on the showcase from across the Middle East, Africa and Europe. This four day global exhibition is an annual gathering for international real estate professionals especially from the upcoming markets.

The participation of the Bloom Properties in Cityscape Global in the emirate reflects the commitment of providing an integrated approach in building communities through value added offerings in sports, leisure, health and retail.

French Café & Boulangerie Launched In The Dubai Mall

2010-10-06T21:17:00.001-07:00

A second independent restaurant operation has introduced ventured by Emaar Hospitality Group. A new concept restaurant has been introduced at The Dubai Mall. Madeleine, a newly opened French Café & Boulangerie is all set to offer contemporary and casual French cuisine in a chic ambience overlooking The Dubai Fountain. The Emaar Hospitality Group brings expertise in operating stand alone restaurants which in turn will provide a complete lifestyle experience within the community.

The Chief Executive Office, Emaar Hospitality Group and Emaar Hotels & Resorts, Mr. Marc Dardenne said: “With over 40 restaurants in our portfolio, launching Madeleine marks another positive step in Emaar Hospitality Group’s expansion plans. After a year of opening our first independent restaurant, Downtown Deli, also located in The Dubai Mall, we have proven our proficiency in managing quality food and beverage across individual restaurants as well.” He further added: “Madeleine will be the ideal place to relax with friends or family while enjoying exceptional French cuisine in elegant surroundings. The restaurant is committed to providing visitors with exceptional service and quality in the idyllic ambience.”

This unique restaurant is ideally located on the first floor of the Dubai Mall and the guests coming to the restaurants are provided with the breathtaking views of The Dubai Fountain from the outdoor terrace. The restaurant has the largest terrace in the Mall for al fresco dining and it can accommodate around 271 guests with indoor as well as outdoor seating. The restaurant is beautified with wooden flooring and it offers casual dining experience. The menu features traditional French artisanal cuisine.

As far as the opening hours of the restaurant are concerned, it opens from 10 am to 10pm on weekdays and 10 am to 12 midnight on weekends. Emaar Hospitality Group features five hotels in its Dubai portfolio.

Meraas to Award Pearl Jumeirah Contracts by December

2010-10-03T21:53:00.000-07:00

MeraasDevelopment is a member of Dubai government owned Meraas Holding is all set to award infrastructure contracts in the early December for the Pearl Jumeirah Island development. The value of the contract was still not disclosed. Sina Al Kazim, Meraas chief business evelopment officer told Gulf News: We've issued contracts for the reclamation work and the usual tivities associated with island development — like hydraulic studies, environmental studies and coastal protection. Future contracts include the building of roads and other infrastructure and the power sub-station.”

He further added “We prefer not to discuss financial terms.”Meraas unveiled this Pearl Jumeirah which was earlier labeled as the East Bay which is a component of the Jumeirah Gardens. It has been asked that whether this entire Jumeirah Gardens project had been scaled back from its original size. As Kazim said: “At this point in time, Meraas does have the land bank available but does not wish to proceed with the original plan as the market does not require it. As the market changes, Meraas will fit in to that requirement.”

He further added: “Meraas will always react to what the market requires. We will also always support the government in what it wants us to do.” The land handover on Pearl Jumeirah is on the fourth quarter of this year and further development of the island will depend upon on the investors those who have bought the land. Meraas exhibits a detailed model of the Pearl Jumeirah development at the Cityscape exhibition next month in Dubai.

Nakheel Re-Starts Short Term Works Again

2010-09-29T21:38:00.000-07:00

Nakheel is planning to restart all the short term projects in line with the restructuring plan to be finalized by the end of this year. The CEO, Nakheel, Chris O'Donnell said: “We should have all the agreements with contractors in place by the end of October to restart construction at all of our eight short-term projects.” He further added “We've had good discussion with the banks and consolidations, restructuring should be pretty much completed by end year.” Nakheel, one of the most trusted and well known real estate developers in Dubai has already reached an agreement with the contractor working on 300 villas. This started two years back will now get completed.

The managing partner at Al Shafar Transport and Contracting, Tarek Zoabi confirmed that the work was underway on 63 villas which are to be handed over in the 1^st quarter of 2011 and the remaining 237, many already around 60 percent complete, will be delivered by the fourth quarter of the next year. Zoabi said: “There has been a short delay due to the economic conditions. But we got paid for the first phase in accordance with the restructuring plan and expect the rest of the payment by the end of the year.”

For 300 villas, the Al Shafar's contract value amounts to Dh573 million. The beginning of work by Arabtec on the other 500 villas in this phase of Al Furjan, is known to be one of the short term projects which is still pending. Mohammad Rashed Bin Dhabeah the managing director of Nakheel Construction said “Arabtec and other contractors will soon be on this and other sites again.

This phase of Al Furjan has been sold out and it is what we are completing. Phase two is a long-term project.” Some clients have moved from long term projects like Palm Jebel Ali to Al Furjan. O'Donnell said “We're in contract with all our customers and those in longer-term projects are participating in swaps to short-term ones, Al Furjan included.” He further added “The focus first is to finish the restructuring and with that the eight projects within the next two years.”

Official Warns Old Tenants as It’s the Payback Time Based on RERA Index

2010-09-26T21:17:00.001-07:00

The officials have now started warning residents those who have not paid their housing fees while ignoring the summons being sent to them in order to get their tenancy contracts registered with the authorities. A senior official has warned that old residents especially staying in Bur Dubai, Deira and Karama those who have failed to register their tenancy contracts within the given grace period may soon have to pay a housing fee which is based on the Rera Index. The Head of Dubai Municipality's Housing Fee Section, Abdullah Hashim Abdul Gafour said that several notices have been sent to people through their utility bills.

Abdul Gafour further stressed, “The Old residents are taking a risk if they don't register after notices had been given. We have started collecting the fee on all flats and villas which had Dubai Electricity and Water Authority (Dewa) connection before 2005. For those who don't take the notice seriously, it's not going to be our problem any more.” The payment fees is based on the rental value instead of the size, however, it’s been criticized as being unfair. Gafour said that the fee is being implemented on the basis of 1962 law which requires the residents to pay a housing fee equivalent to the five percent of their rent.

The official said that they don’t have any problems in implementing the rule on the new tenants who are required to provide a copy of their tenancy contract to Dewa before the utilities are connected. Officials said as and when it comes to the rental details they always follow an honesty policy. The tenants provide the rental details through the municipality portal. Once it’s registered the rental amount gets uploaded onto the Dewa’s system for billing. Abdul Gafpur said: “We reserve the right to take legal action against anyone giving misleading information to the government.”

Aldar delivers Al Bandar residential project

2010-09-23T01:37:00.001-07:00

A new standard has been set for community living by the first marina development within Al Raha Beach. The residential project at Al Bandar was handed over by Aldar Properties. It is an island set around a world class marina. Al Bandar is an island development combining lift style residences, modern apartments and duplexes and large family apartments with well developed balconies and waterside views. It is divided into three zones such as Al Barza, Al Naseem and Al Manara. Al Naseem is constructed of three glass sided buildings. Al Barza features 1 and 2 bedroom apartments and loft style studios with a feel of an open gallery.

A wide range of leisure and retail facilities, restaurants and cafes will be provided in this integrated residential community. The community also features two casual dining restaurants, two cafes, a juice bar, spinney’s laundry and supermarket, Nails Couture nail bar and variety of other boutique clinic Health Plus. There are four swimming pools in this residential development in Dubai real estate and also feature a clubhouse including a gym for the use of Al Bandar residents.

The Chief Operating Officer of Aldar Properties, Sami Asad commented: “We are delighted to have begun the handover of the first residential community within Al Raha Beach. The design of Al Bandar, set on an island, is such that the spectacular sea views will not be obstructed by any future development in the area, providing true waterfront living for those who look to call it their home.”

The Director of Estates, Aldar Properties, Mohammed Abdulla Al Zaabi further added: “Aldar is committed to delivering high quality, truly integrated community living in Abu Dhabi and Al Bandar is testament to this vision. We are delighted to have welcomed the first residents to their new homes last week and look forward to welcoming more in the few coming weeks.”

Growing Demand For Mid-Income Housing in Dubai

2010-09-19T21:41:00.000-07:00

Ghoroob project is almost completed which is a new residential development that especially caters to the mid-income families which is expected to help rents ease in the emirate. It is announced by Dubai Properties Group and part of Dubai Holdings. This residential property is constructed in Mirdiff in Dubai. It is a 3.3 million square feet development comprising of studio, one, two and three bedroom apartments.

The managing director for Jones Lang Lasalle Mena, Blair Hagkull told Gulf news: “In markets all over the world the majority of housing is mid-market and in the last five years there has been a virtual absence of true mid-income housing in Dubai. This development is an important addition to the housing stock.” Group chief executive officer of DPG, Khalid Al Malek said: “Ghoroob Mirdif is a comprehensive apartment community that will transform the landscape of Mirdif. The completion of this project bears testimony to the diversity of our real estate portfolio, which has been devised to meet the evolving demographics trend in Dubai.”

The location of the project is quiet family oriented as the residents have an easy access to schools, Dubai International Airport and few major roads. Hagkull said: “What's important is that this type of housing is part of an integrated community. This good quality affordable housing in a community is increasingly what families are looking for and will perform better in the broader market.” He further added “This was a project that was always planned for middle income residents. With these types of developments, often the design tends to be simpler which means it tends to keep its quality.”

Such low cost developments are needed in the market where the rental prices continue to drop. As new supply came into the Dubai real estate market, the rental rates dropped in areas including Sheikh Zayed Road, Bur Dubai, JLT, Greens and Barsha. DPG has expanded the leasing channels in order to accommodate this high demand for affordable apartments and villas.

Dubai World To Repay Interest then Loan Installments

2010-09-15T21:31:00.001-07:00

A government official said that Dubai World will have to repay interest on loans to the creditors and then the loan themselves. The state owned conglomerate reached a formal deal in order to restructure almost $25 billion of debt. The debt struck emirate has to rebuild the confidence with the restructuring agreement with over 99 percent of creditor banks thus rebuilding confidence in Dubai’s economy. A key player in Dubai’s government and corporate landscape, Ahmad Humaid al Tayer said: “The repayment process will begin with the payment of interest rates, and then loan installments, which will also depend on the nature of each loan as some of the loans are consolidated credits, while some are bilateral and some are bonds.”

Tayer is a member of Dubai’s fiscal committee and the Chairman of the largest bank in Dubai, Emirates NBD. This Dubai World agreement is seen as a positive step towards resolving the debt crisis. The announcement came just after a unit of Dubai Holding owned by Dubai’s ruler said that it would delay the repayment on a $555 million loan and the second time failed to meet the repayment deadline.

Approval of the debt restructuring deal can ignite the spark of fresh investment opportunities in Dubai can especially in the fields of construction, trade, tourism, infrastructure, transport and the financial sector. He further said: “All these elements will help Dubai to rebuild its position as a regional trade and services centre in the Middle East.” However, there are several other related entities which are about to reach a concrete debt restructuring resolution.

Tayer said that the Dubai World agreement with the creditors took several months in order to reach an ideal solution for all the parties which are involved.

A Growth Platform for Business Village

2010-09-12T21:23:00.001-07:00

Dubai is the emirate where more than 65 percent of the office space at the well known Business Village has been given on lease. The Business Village is rightly located close to the Deira Clock Tower and Maktoum Bridge. The Al Maktoum Bridge is closely located at a prime location overlooking Dubai Creek. Mohammad Bin Rashed Establishment for Small and Medium Enterprises is the owner of this prime construction in Dubai real estate. The CEO of the development, Abdul Baset Al Janahi said: “The Business Village offers a new concept to boost business by providing an ideal growth platform that allows entrepreneurs to form strategic partnerships and take advantages of advisory services and training courses.”

The property space that has been leased is engaged in small businesses including Foreign Investment Office, Dubai Export Development Corporation and Dubai Shopping Festival etc. The deputy director in Business Village, Ahmad Al Hashemi said: “A number of government organisations are also planning a move, including the Department of Economic Development, Foreign Investment Office, Dubai Shopping Festival and Dubai Export Development Corporation.”

As far as the latest and modern infrastructure is concerned the Business Village is well facilitated with multiple newest facilities which offer a choice to the tenants. Business centre and conference facilities are also provided.

Dubai Villa and Apartment Prices Slash Again

2010-09-09T00:23:00.000-07:00

Reidin.com is a Dubai based real estate data organization which says that the emirate is still experiencing a decline in the property prices as the apartment rates are dipping down as against the data showcased in the month of June this year. Just like the prices for apartments has gone down, similar is the case with villa prices as these are decreased by 1.19 percent. As compare to the value registered which is 0.85% less as compared to the value registered during the similar period.

If we look at the quarter results, the apartment price index has gone down by 5.23% if we talk about the values against the values registered during the period in the year 2009, however, the villa index has gone up by 6.99 percent. Villas and apartments which fall under the category of 101-150 square meter are registered with a small amount of decline of 0.99 percent and they are holding onto their best price tags. The property index by Reidin.com is revealed with a joint venture with Dubai’s Real Estate Regulatory Authority (RERA).

The data is being gathered from various sources which include transactions of some specific places and communities in the emirate. It has been collected from seven citywide indices and a total of 19 districts including Dubai Marina, Downtown Burj Dubai, Business Bay, Jumeirah Beach Residence and The Greens.

Abu Dhabi Sets the Standard for Green Buildings

2010-09-05T22:13:00.000-07:00

Abu Dhabi is all set to introduce and adapt to a new green building code that is to be introduced in the emirate this week which aims at reducing 40 percent of the energy bills. The emirate is creating its own green building rating system hoping that it will become a benchmark for the property developers across various regions. For new property constructions, all of them must meet these sustainability and urban design requirements in order to get the approval to begin construction.

The Abu Dhabi’s Urban Planning Council, is about to publish first parts of the Pearl design System ratings method for green buildings being developed within the emirate. These voluntary ratings will only be applicable to the upcoming projects. This new green building code has been developed by the Urban Planning Council. Moreover, it’s mandatory that every building must achieve at least a one pearl rating.

The major role of the Urban Planning Council in Abu Dhabi is to make sure that the urban centers must also develop in a sustainable way. These activities are particularly aimed at raising the environmental standards. As of September 1, these green building standards will be followed.

Developers Strive to Keep Up the Owners Associations Deadline

2010-09-01T21:39:00.000-07:00

The developers in Dubai have already started using the strata consultants in order to keep up the October’s deadline for registration of the owners association, it is said that the extension to the deadline is likely. Kent A O'Brien, the CEO of the Strata Global said that the October deadline to complete all documentation process and to register owners' associations with RERA (Real Estate Regulatory Agency) will be extended further. Graham Yeats, the Head of the Strata Management at the Cluttons also reacted in a similar way.

He further added: “The pressure to meet the deadline will be there. Even RERA will have to do a lot of processing within a short span, but it will be worthwhile in the end.” O’Brien said that there are developers of Dubai real estate who have been proactive till date and are continuing in the same way, however there are few others those who have been hoping that they will not be able to spend any money on compliance.

Several developers are already using the consultants for their registrations and the main document is the JOP declaration, which outlines the details of the project, which includes the method of calculating the cost sharing. For this to be calculated in an equitable manner, RERA is ensuring methods for that and the consultants can assist with this formula. He concluded that although the deadline is quiet tight, the proactive developers are still trying their best to reach the goal.

RAK Developers Guaranteeing 3-Year Visas

2010-08-29T21:37:00.000-07:00

Some property developers in the Ras Al Khaimah are guaranteeing a three year residence visa in exchange of buying a property in the emirate. Even though the federal law stresses on offering residential visa for only 6 months, however, provided a purchase of a property in UAE a 3 year residential visa will be given. A real estate developer from the Al Hamra Village is openly selling this scheme and he is also financing for Royal Breeze Direct Sea View Apartments. 100 percent ownership of the Al Hamra Village property is being offered by a sales representative.

The sales agent said: “You will get the visa from our sister company, which is Rakia. The visa is guaranteed once you purchase a property”. He further added: “You will get the title deed after paying in full. For the visa, we will arrange a trade license for you so you can get a residence visa. It will cost Dh5, 000 but that is a one-time payment. This visa is renewable every three years for Dh2, 000.”

According to the sales agent, the visa here in Ras Al khaimah is guaranteed as the laws here in this emirate are entirely different from the other emirates in the UAE. There is a different criterion for enjoying the interest free financing plans as the presence of 60 percent deposit has to be made for over a period of over 2 years. As per the UAE Federal law, the expatriates can hold the ownership of the property in UAE for a period of 6 months via multiple entry visa.

The law also states that there has to be a maximum value of the property which should be of Dh1 million and the owner of that property should have a monthly income of Dh10, 000. After every six months, the visa needs to be renewed for which you have to pay an amount of Dh2, 000.

Now Is The Time To Invest in Dubai Commercial Property

2010-08-26T21:21:00.000-07:00

The real estate analysts in Dubai have studied and according to that they reached a conclusion that people those who are interested in buying some commercial property in Dubai, can do it now as they can earn a return of 8 percent by investing in the commercial properties in the emirate now. Although, there has been an increasing number of a property becoming vacant, still the commercial property is on the rise these days in the emirate. Moreover, this process has resulted in rental rates dip of commercial properties.

Porush Jhunjhunwala, leads commercial sales and leasing at Better Homes said: “In the short-term, there may be a negative impact on general rental rates because of the number of empty offices and future oversupply. However, we do not expect this to affect the return on the assets we're selling as the rentals are locked in for the contract period of three to five years.” He also mentioned that as compared to the residential properties, higher returns can be earned from these properties.

He further added: “Now is the time to pick up a great commercial property in a strategic location at the best price, and with a possible long-term tenant.” According to him guaranteed returns can be enjoyed on the investment made on tenanted commercial property with yields up to 8 percent ROI. Jhunjhunwala said: “We have income generating assets mainly in JLT, Downtown and DIFC. In JLT we have assets for Dh800 per square foot which are producing income of eight to 8.5 per cent per annum.”

Research lead at Jones Lang LaSalle, Craig Plumb said: “Rental values are still declining in the office market in most areas of Dubai, but this does not mean to say there are no good deals to be had, as there remains selective demand from occupiers who are seeking to benefit from the more competitive market conditions.”

Nakheel to Begin Work on Six Mega Projects in Dubai

2010-08-24T21:30:00.000-07:00

One of the Dubai based leading property developer; Nakheel will soon begin work on a minimum of six mega projects in the emirate in the early next month. This has been announced and it will soon be implemented. The communities on which the work is about to get started are: Jumeirah Heights Clusters, Al Badrah, Jumeirah Park, Al Furjan, Jumeirah Islands and last but not the least Jumeirah Islands Mansions.

On Tuesday, The National reported a company statement: “Nakheel is currently engaging contractors in the short-term projects with a view to continuation in the coming weeks. We expect that all short-term projects will be fully mobilized by early October 2010.” Currently, contractors are getting engaged in certain short term projects that will be kick started by early October 2010. Last month the contractors started receiving payments from the developers of the Palm Islands for the continuation of the slowed down projects around Dubai real estate.

Ali Rashid Ahmed Lootah, the Chairman of the The Nakheel said that there were 1000 trade creditors with whom the company was dealing. Several big companies including UK engineering company, Halcrow and Halcrow and Arabtec Construction are all implicated in the Palm Jumeirah project and they all have confirmed to have received payments from the Nakheel. Ziad Makhzoumi, The Chief Financial Officer of Arabtec has already stopped work on Al Furjan in the month of January saying that this project would soon re-start.

Dubai Municipality to Use RERA Index

2010-08-22T21:28:00.000-07:00

A new set of rules is developed for the house owners of Dubai by Dubai Municipality according to which the home owners are now have to pay Dubai Municipality (DM) housing fee of 5 percent and that has to be given even if the property is vacant, provided there is a DEWA connection. The Dubai Municipality has cleared that no cheating will be tolerated as the residents in Dubai are showing by listing their rents which are much below the current market rates for a specific region. If any kind of malpractice is witnessed the municipality will be forced to use RERA, rent index.

According to the Head of Housing and Marketing Fees at the Dubai Municipality, Abdulla Hashim Abdulghafoor, if a house owns a Dubai Electricity and Water Authority (Dewa) connection, then the municipality can charge a housing fee. He further added: “Whether an apartment is rented out or remains vacant, one still has to pay the housing fee as long as he has a Dewa connection. There is no exemption. We are slowly covering all the areas - freehold and non-freehold - as per Dewa's billing cycle.”

He also mentioned that since the month of May the residents are being sent notices, adding that those who fail who fail to list on the municipality website even after the second round of notices, he will be charged in tune with the RERA Index. “We will serve the residents with two notices and those who fail to register within that time span will be charged housing fee as per the Rera index. They will have no chance to complain if they are charged higher.”

According to Abdulla Hashim Abdulghafoor, if any divergence is being found between the RERA Index and the rental contract, the housing fee will then be calculated with the basic RERA rates for that particular area. Freehold property owners will now have to pay 5 percent as RERA rent index instead of 0.5 percent which they were paying on an annual basis. He further mentioned: “Our target is to get the around 300,000 unit occupants to pay. Whether you are staying in a freehold or non-freehold area is not our concern, you have to pay for infrastructure being used across Dubai.”

Marina Square - The Costliest in Abu Dhabi Rental Market

2010-08-18T21:20:00.000-07:00

The Marina Square apartments in Abu Dhabi are all set and are ready for handover and these properties are likely to be the costliest in Abu Dhabi real estate. At present, the maximum rental pricing for a double bedroom apartment is about Dh.210, 000 to Dh.230,000 a year. For other similar apartments on the Abu Dhabi Island, the rents are likely to be more. This highly increased rental value can be due to certain factors including lack of congestion, parking views, location. This entire new project features a lifestyle featuring breathtaking views and well maintained underground parking system etc.

Post Ramadan, more than 3000 units will be ready to be occupied and many of these properties will also enter the leasing market in the next few months. The owners are likely to demand a premium. Other than exclusive facilities and location, limited availability of these units in Marina Square is also one of the vital factors contributing to the high rental prospects of the property. Moreover, the buildings which have been fully completed will be rented out in two months. The Chesterton's projections indicate that apartment rents on the Corniche may comparatively remain stable during the coming months with the delivery of these Abu Dhabi Marina Square units.

The Head of transactional services at Asteco Property, Charlie Walsh says that comparing the Corniche and Marina Square is quiet difficult as the quality of the accommodation at the Corniche varies depending upon the age of the building, moreover, the rentals are yet to be proven as the units are still not handed over. The marina Square is quite a modern development facilitated with all latest facilities and amenities including gymnasium, swimming pool and parking etc. However, it’s for the market forces to decide.

Damac Focuses On Completing Real Estate Projects

2010-08-15T21:28:00.001-07:00

Damac Properties is one of the largest private real estate developers which are currently focusing on completing pending projects in North Africa and Middle East. Zeid Al Chaar the General Manager told in an interview: “The focus now is not on launching new projects. We have to consolidate what we started.” There are a total of seven real estate projects which the company is expecting to hand over including a total of 3900 residential, commercial and retail spaces in Dubai and all this is expected to be done by the first quarter of the year 2011. The main developments are at home in the United Arab Emirates and across the markets in the Gulf region, Lebanon and Egypt, Damac is building around 12,500 units

Since the economic downturn, several property developers in the UAE have already changed their portfolio which now includes constructing homes for the low and middle income sectors; however, Damac is still staying with the luxury and the upper class segment of the society. He further added: “This is the core competence of the company.” In the month of July, Damac awarded a $120 million contract in Jeddah.

Dubai, the business as well as the tourist hub of the UAE was quiet badly affected by the financial downturn which occurred and due to which thousands of people lost their jobs etc. During that phase, several projects worth billions of dollars were either cancelled or put on hold and the Dubai property prices drooped down. Al Chaar said: “With prices moving towards a more affordable arena, I think from all the countries where we originally had buyers, we are seeing those buyers coming back.” He further added that the typical buyers are also buying properties for leasing or living purposes rather than the point of quick sales.

Dubai Offers First Legal Shared Accommodation

2010-08-11T21:24:00.000-07:00

A Dubai based property developer has started renting out buildings which are offering first legal shared accommodation for bachelors. For growing number of single men, Al Khail Gate features accommodation ranging from Studio to two bedroom flats in Al Quoz. These are especially meant for those who can’t afford an apartment on their own in Dubai. Also, these buildings have set an updated affordability standard in the emirate with compact one bedrooms ranging from Dh 28,000 to Dh 31,000 etc. Salwan Property Management manages and handles these buildings in Al Khail Gate and are quite high in demand among bachelors.

Moreover, there are few rules which are to be followed: A 420 sqft studio can be shared by only two bachelors, four are allowed to share a one bedroom flat and last but not the least six people have the authority to share a two bedroom flat in the emirate, regardless of the number of rooms the apartment has.

A handout has been released by Salwan states for the following buildings in Phase I of the project: 17, 38, 42 and 49 which are “bachelor buildings” In Phase II, 33 buildings has been recently launched, however the demand for these is really high. A spokesperson from Salwan Leasing office says that: “the smaller one-bedroom flats "are 450 square feet and are an elaborated studio, more than a proper one-bed. The bedrooms don't have doors, and there is a wall separating the living room from the bedroom, almost like when one partitions a room."

AA Properties To Develop Villas On The World

2010-08-09T00:27:00.001-07:00

AA Properties is an independent real estate agent in Dubai featuring a global network of real estate investors. This Dubai based broker and developer has made some plans to build luxury houses and villas on Nakheel’s The World project. These luxury homes that are yet to be constructed will worth a minimum of $54m. This property developer has thought of constructing these luxury properties as it targets wealthy foreign buyers. A construction contract worth between Dhs200m ($54m) and Dhs300m will be awarded to Arabtec for building around 12 beach villas on the Taiwan Island which will be priced at $8.2m to $9.5m along with three houses.

The villas being developed will be extremely luxurious and of course you have to pay a hefty amount for that. The basic necessities such as water and power will be provided to the residents using desalination facilities and gas generators. This has been told to a news service by Jeroen van der Geer, AA Properties partner. The construction of these villas is all set to begin by the end of this year; however the project is scheduled for completion two years later.

The World is one of the most exclusive real estate projects ever and these luxury villas which are about to get constructed will surely enhance the value of this Dubai real estate project. This ultimate international destination will widen the horizon especially for foreign property investors as you can invest in waterfront homes and beach villas.

Emirates Islamic Bank to Help Get Projects Moving

2010-08-04T21:20:00.001-07:00

As per the new initiative taken by Dubai Government to guarantee financing for certain specific property developments, the Emirates Islamic Bank is the first Land-Department accredited bank that will be lending under Tayseer. The bank has the access of the Dubai government-backed guarantee scheme assuring returns for the financial institutions which are participating and its protected by Dubai’s Real Estate Regulatory Agency. Industry experts has welcomed this initiative took by Tayseer. Head of research and consultancy, Mathew Green, CB Richard Ellis, Middle East told Gulf News: “Tayseer is an important step for the Land Department to help oil the wheels to get developments moving. Tayseer is an important step for the Land Department to help oil the wheels to get developments moving.”

With this move, it is expected that around 40 selected projects will be completed soon including Jumeirah lake Towers, Business Bay etc. Mathew Green further added: “Rera is probably not ready yet but still in the due diligence stage. However, investors want to know when they can move in or expect a rental income from their property.”

Land Department's director-general, Sultan Bin Butti Bin Mejren said that over the next three years, more projects will be added ranging from small to complex projects. Various other bank applications were under consideration of Tayseer. It is just a start so that the projects could move further in their construction phase; however the investors want clarifications directly from the developers of those already stalled projects.

Partner at the UAE business law firm Hadef & Partners, said: “Keeping these projects in limbo is detrimental to people who have invested in them as some developers may still be trying to collect money off the buyers, or cancelling the purchase to retain monies paid, whilst knowing they are not proceeding.”