Brainstorming Week Inspires Entrepreneurs in Dubai

The property investors who are thinking of buying and investing in Dubai may find some innovative options in Dubai real estate market in future due to the new cohort of developers.

The first time in Dubai Global Entrepreneurship Week has been hosted by Mohammed Bin Rashid Establishment for SME Development from 16^th to 22^nd November 2009.

The brainstorming events of the week brought together the young people from different parts of the region. The students also got the opportunity to investigate the creative and innovative ideas. Moreover, the week added an inspiration though talks and debates.

The initiative aims at creating some of the best entrepreneurs of the years to come. These prospects could help in creating some deep-seated new designers, architects and construction experts. Consequently, this may enhance the region’s property industry and make buying in Dubai even more exciting in future.
"The Global Entrepreneurship Week highlights our commitment to incubating young talent and supporting their creative ideas, and thus help establish leading projects in the future," His Excellency Abdul Baset Al Janahi, chief executive of the Mohammed Bin Rashid Establishment for SME Development said.

A major conference was also held with the purpose to consider the future of the region’s construction industry.

It was confirmed by the two-day event that the real estate in Dubai sustains to be a crucial part of the region’s economy and the construction industry. It also indicated that the industry is surely committed and ensures the region’s growth.

Government and partner organizations based throughout the globe hosted events like invention competition and local entrepreneurship summits. These were designed to inspire, unite, mentor and engage the next generation of entrepreneurs.

The growing movement was relished by millions of young people from all around the world with the aim to think big, turn ideas into reality and make their mark.

Distribution of Commercial Space Initiated in Jumeirah by Al Fajer

A Dubai-based developer Al Fajer Properties has initiated the distribution of two million square feet of commercial area across its tower in Jumeirah Lake Towers.

The president of Al Fajer, Sheikh Maktoum bin Hasher Al Maktoum told, “We have already started handing over units in our five Jumeirah Business Centre towers. The second phase, consisting of another four towers, will be completed by the year 2011.The company has self-financed about 88 per cent of its towers.”

Through a discount scheme which was offered to investors in July, the developer raised up to Dh400 million. According to him, “It was very successful as we offered up to 40 per cent of discount to investors. We have used the fund to complete our construction.”He also added, “The Company may witness a default rate of 20 to 30 per cent, he said, adding, "we are OK with it as we have secured funding to complete our projects".

Leasing could be one of the possible options when Al Fajer still has 25-30% unsold inventory.

Asked whether "off plan" market could see a revival, Sheikh Maktoum said: "The off plan market is dead and will not see any revival."

"The market conditions were not conducive by end of March and so companies had temporarily halted construction. But those projects will get completed."

He believes that completed properties will be in big demand next year and so the focus is on completing all the launched projects.

Sheikh Maktoum said sales prices of Jumeirah Business Centre towers in the secondary market have risen by almost 30 to 40 per cent in the last few months.

"During the peak of 2007 and early 2008, prices had touched Dh2, 200 sq ft, but then fell to a low of Dh800 during the economic crisis," said Sheikh Maktoum.

Prices of Dubai Marina Apartments Fly High

Dubai Marina Apartments have gone high by18 to 38% during this year according to a real estate company in Dubai. The Head of Sales of Asteco, Vineet Kumar told, “Single bedroom apartments at Dubai Marina are currently selling at Dh.1300 per square feet, an increase of 18 percent from Dh.100 per square feet sold during the beginning of the year. The double bedroom apartments are now being sold at Dh.1250 per square feet, an increase from Dh.900 per square feet in January, while the triple bedrooms are sold at Dh.1250 per square foot, an increase from Dh.950 in January. Single bedrooms measuring 850 to 900 square feet at Elite Residence and Dorrabay are now priced at Dh.1.2million. In January 2009 this type of property was quoted as Dh.900,000, while similar apartments were priced at Dh.1.35mn in July 2008.”

“The double bedroom apartments at Marina Promenade measuring 1280 square foot is currently priced at Dh.1.6mn, while it as Dh.1.15mn in January. A triple bedroom apartment in proximity to Jumeirah Beach Residence costs about Dh.2.37mn at present, while the same property was priced Dh.1.8mn in January. However, four bedroom apartments have not seen much improvement in prices at present, and stand at Dh.975 per square foot, an increase from Dh.850 per square feet in January this year”, as reported by Asteco.

“Demand for four and five bedroom apartments at Dubai Marina is much lower than that for triple, double and single bedroom apartments, as families have the affordable option of purchasing four or five bedrooms at villa communities. The increased demand for smaller units at the Marina implies that such units command higher prices per sq. ft. than larger ones. The larger the size of an apartment, the lower is the price per sq. ft.,” said Kumar.

Although, the value of Marina has dropped by 15 to 60% since July 2008 as revealed by the figures but still certain towers in the Marina are maintaining their values because of the demand from investors and end-users. However the growth values in the rates of few other real estate units in Dubai are slow. This is depicted by the fact that the prices offered in the market for the Marina have a diversified and huge range from Dh850 to Dh2000 per Sq ft.

52 Countries and 3000 Exhibitors to Exhibit in Big 5- Dubai Real Estate Show

The Middle East’s top international construction exhibition Big 5 will attribute 52 countries with over 3000 exhibitors varying from main suppliers to regional distributors for Dubai real estate development. The four day long event was inaugurated on 24^th November by Deputy Ruler of Dubai and Minister of Finance and Industry, Sheikh Hamdan bin Rashid Al Maktoum at Dubai World Trade Center.

The Big 5 is going to occupy 43,000 square meter of the area and will comprise of 22 national pavilions. This makes it the first event to engage in the entire venue at Dubai International Convention and Exhibition Centre (DICEC). The event is also 15 % larger than the last year.

Major exhibitors include: Harwal Group of Companies and Euroslot and Clipper from France, Belgium's Echo Engineering, Canadian Climatech, HCP Pumo Manufacturer from Taiwan and Tongdy Control Technology Co. from China and Germany's Hörmann KG VKG. Exhibitors will be showcasing everything from asbestos-free cement to waterless urinals which incorporate a TV screen, and fast-build wooden buildings to state of the art sectional steel water tanks.

The Big 5 Exhibition will feature an impressive arrangement of added value elements including the presentation of the Gaia Awards 2009. The Big 5 Conference will focus on the critical challenges of the present scenario and will run on November 24 and 25 at the Monarch Hotel.

High on the agenda will be the environmental issues throughout the exhibition. The cost for offsetting the carbon footprint at The Big 5 Green Stand will be Dh100.

Helal Al Marri, CEO of DWTC, said, "As has been evidenced by The Big 5's impressive growth this year, the demand in key sectors such as construction is clearly on the rise. Our recent infrastructure expansion that provides a total of over one million square feet of covered exhibition space at our DICEC venue is hence a critical step that will cater for the increasing demand and positive growth in the region's events sector. This growth reinforces rising levels of global business and investor confidence in Dubai as a global business powerhouse".

Palm Jumeirah Sits Away From Speculative Slides

With the value of UAE properties, real estate in Dubai and elsewhere sliding massively, a lot of tentative attention is being drawn from the buyers who are availing the best of opportunities in every deal they can from heel to toe.

But Palm Jumeirah is religiously not following the same in this context. The community has remarked its own real estate market prices and values on the island appear to have a rather concrete rock underneath them.

The reason and situation behind this cause is that Palm Jumeirah does not have to face any competitors like Palms or Deira which are also waterfront developments. This is due to the fact that Palm Jumeirah was complete quite before the crisis unlike these two developments. The two later developments have also been brought to a stand still.

Palm Jumeirah is still enjoying the positivity of exclusive demand with limited supply unlike the other Palms which are waiting for their fate. This simply implies that only the real investors who can be patients and can wait for returns can afford the Palm. However, the spectators seeking a property on the wink of an eye can’t pay for it.

Global Investors’ Gaze at Dubai Real Estate Again

With the real estate prices gradually coming on track, the investments in Dubai real estate are being much talked about by the global investors. Due to the weakening of the clutch of recession all around the world, these investors are looking forward to the market going towards reasonable scenario.

Tej Kohli, a real estate investor and founder of Ozone Real Estate commented, “The latest results from the Dubai House Price Index from Colliers indicate that real estate prices in Dubai have grown almost seven percent during the third quarter of the year from the previous quarter”.

He also added that the results are a fair indication of tremendous recovery and also signalize a bounce in the market.

Kohli confirms, “The stability in property prices is set to be steady from this point on, given the fact that real estate prices are moving to more reasonable levels. The best indication about the Colliers report is that transactions Increased by 64 percent during the third quarter, due to relative stability in prices and affordable housing. Moreover, the growing property boom will be further strengthened by a series of new launches and openings within the emirate, the report said.”
Kohli also pointed out that world’s tallest tower Rose Rayhaan will also witness a gala inauguration by the mid of December followed by the reopening of five-star hotel Jebel Ali Golf Resort and Spa.

The first quarter of next year will also welcome the opening of high profile hotels The Conrad Hotel and Ritz Carlton along with a series of other projects including new airport.

Further the opening of crescent shaped The Palm Jumeirah Royal Amwaj Resort & Spa, Jumeirah Golf Estate, Dubai International Airport and Tigerwoods’ Al Ruwaya Resort are also entering into the shoes of development in 2010.

The swerves of launches show that Dubai is moving fine on track. Kohli concluded by appreciating the rise of global tourism by 4% as compared to same period last year.

Recovery of Off-plan Ventures Unlikely for Two Years.

The developers in Dubai need to think over quality and winning back investors smashed confidence in order to recover the off-plan real estate Dubai market which is unlikely to pick up before 2011 even after this move. The investors who have been deferred by the cancellations or delays also need to be won by the developers with tying pricing strategies.

Sana Kapadia who is the Vice President of Equity Research at EFG-Hermes said, “Investors have been holding back payments because construction is not starting and developers can’t move forward because investors are not paying, that is the reality of the current situation. The recovery of the off-plan market in the United Arab Emirates will happen only from early 2011.”

However some also think that it might take longer. According to Chet Riley, Vice President of Real Estate Equities Research at Nomura International believes it will be early 2012.

‘The over supply of residential units in the property market needs to be absorbed in the next two to three years. It is unlikely that the off-plan recovery will happen before 2012,’ he said.

The new investors need to be won by the developers with far more than mere promises as their confidence is being highly smashed.

According to experts, the tie-ups with mortgage companies and banks may help to ensure optimum funding in place and finally avoid the present ferocious state. They also emphasize on working more strongly with regulatory authorities to ensure the interests of the investors and to build their confidence once again.

“Aspects such as construction-linked payment plan will help to alleviate the financial burden of holding real estate if the project is delayed beyond the proposed completion date,” said Jones.

Kapadia also revealed that the blame for fuelling the assumption and spinning that led to the downfall of the off plan market goes to the developers themselves.

“Developers must avoid the trap of speculative payment plans that is 2 to 5% initial deposit versus the bulk at completion.” He said.

Finally Blossom the Prices in Springs and Meadows

The secondary market prices of the real estates in Springs and Meadows have gushed in the range of 11-33 percent and 16-19 percent respectively since the beginning this year

Head of Sales in Asteco, Vineet Kumar told, “In Springs, two-bedroom villas currently sell for Dh1.5 million onwards, up 36 per cent from Dh1.1m at the beginning of this year. Three-bedroom villas start from Dh2.8m from Dh2.6m in January.”

He also added, “In the Meadows, current prices for four-bedroom villas start from Dh3.8m, up 18.75 per cent from around Dh3.2m at the beginning of the year. Five-bedroom villas, meanwhile, are around Dh4.4m now, up 16.5 per cent from Dh3.8m on January prices."

He further said that the market was stagnant in the Q1 and started rising from Q2 and Q3 of the year: "Prices in the Springs and the Meadows have seen a quarter-on-quarter steep fluctuation owing to market conditions. It would seem that prices are trying to find stability in these developments and their current levels are trying to catch up with the third to fourth quarter prices of last year,"

Mohanad Alwadiya, the Director of Harbor Real Estate said: "Prices appear to have stabilized in the Springs and the Meadows largely due to the increase in demand. The residential market is currently being driven by a flight to affordable assets. The mid- to low-income earners, who were previously excluded from the market due to high prices, are now taking advantage of the new levels of affordability. Projects such as the Springs and the Meadows are in demand, with buyers taking advantage of prices which are anywhere between 35 per cent and 50 per cent lower than the peaks of 2008."

"Also, as an Emaar project, banks have been more inclined to lend on it. The Meadows and Springs are both older and more established communities, so when some projects were put on hold, buyers turned to these developments to move into as their homes."

IFA Hotels and Resorts Launches Condominiums

The leading foreign investor on the Palm Jumeirah, IFA Hotels and Resorts has announced the launch of its second hotel condominium ownership merchandise in the Middle East.

The new offering is located within the five-star Fairmount Palm Jumeirah hotel in Dubai and is certainly of a particular interest for investors who are aspiring to branch out their property portfolio. The venture is a unique real estate selection that unites both the business of capital growth potential as well as guaranteed rental returns accompanied with the pleasure of a hassle-free vacation property.

The concept also permits initial investors to purchase a fully-furnished, five-star hotel room within a rental pool system. This guarantees annual returns of 10 percent per year for the initial five years underwritten by IFA Hotels and Resorts during the hotel stabilization phase and a guaranteed buy back premium of 10 percent after five years from the hotel’s opening.

Werner Burger, President and COO of IFA HR stated, “Worldwide, hotel condominiums are one of the fastest growing sectors of the real estate industry. As the first company to introduce the concept of hotel condominium ownership to the Middle East, we have seen its appeal continue to grow, particularly in markets like Dubai where hotel occupancy is still one of the highest in the world,”

Dubai Villa Stock Welcomes the New Handovers

According to Dubai Properties Group, the leader in Dubai real estate market, the handover of entities in The Villa and Al Waha Villas is expected to take place in December.

Al Waha is a fully sold-out development with 260 villas out of which 50 are three bedrooms and 50 are four bedrooms. One can choose from the rooftop view or the garden level preference if looking for two bedroom location.

Apartments for lease at 558 Community
Of the 558 Community, 134 are of the four-bedroom type, 102 are three-bedroom and 180 are two-bedroom entities.. There are also 48 two-bedroom and 96 three-bedroom apartments to accommodate 558 residences. All villas are spacious and have an upstairs sitting room to boot.

The 558 Community also houses a block of three-storey apartments in its centre and features a large pool. These residences are being leased for Dubai Properties by Salwan Property Management and are not for sale. “We will offer our services to third parties in Al Waha and are managing phases 1 and 2 of The Villa project,” says Saeed Bushalat, CEO of Salwan Property Management. One- and two-year rental contracts are on offer, which come with the provision that there will be no value increases for the first two years.

Mirdif versus 558 community
Dubai Properties’ Shorooq community which includes 668 villas in Phase One, has 353 units ready for tenants to move into. According to Salwan, the rents for a two-bedroom villa here would amount to Dh170,000 compared with the 558 Community’s rates of Dh130,000 a year before summer.

However, after summer DPG stated that introductory promotional packages would be offered during the initial stage of leasing. This makes perfect sense as the market price for many areas in Dubai find themselves in a state of fluctuation this year.

“Mirdif and 558 Community are two totally different projects,” explains Saeed Bushalat of Salwan Property Management. “The unit sizes are bigger in Mirdif. Our rents correspond to the going market prices in the area. It is close to the centre of town and the shopping centers. The 558 Community has not got that yet.”

DPG also started handover of over 2,000 residential and commercial units at its Executive Towers in Business Bay in September. “Handover should be complete by the year-end. We have sold most units in the towers, but kept retail, hotel and some of the apartments to be leased by Salwan,” commented Khalid Al Malik, DPG Group’s CEO.

Hesham Delineates the Ways to Maintain Price Rise

With Dubai real estate market coming back on its track, Hesham Elfar of Coldwell Banker UAE delineated the postulates to ensure that it stays the same way.

Dubai developers along with the realty agents are wondering after the watching the price rise in properties that whether the market has really bottomed out. Commenting on this Hesham Elfar, CEO of Coldwell Banker UAE, said, “One thing is for sure, if we have not reached the bottom, we are very close to the bottom."

According to Hesham’s predictions, there may be a further plunge in prices before things progress. "In the next six months, villa prices should remain stable while apartments might see a drop of 5-7 per cent due to excess supply expected in the coming months. With commercial properties we are expecting a downtrend in prices, also due to upcoming supply."

The players of the realty world however, must not become too contented. Hesham believes that there is a lot more to be done before Dubai can spring back. "Firstly, the residence visa issue should be re-evaluated, as this has lured a lot of people into investing in real estate in Dubai. They have replaced the three-year visa with a six-month multiple entry visa, which is expensive and requires a lot of paperwork. It makes life more complicated; with this visa people cannot buy a car here or place their kids in school. It's very important to resolve this issue, because it will attract foreign investors."

Hesham added that in order to fuel the commercial market, incentives should be offered to the companies to set up shops in the UAE by the governments. "When companies set up offices in a country they create job opportunities, housing requirements and increase consumer spending -this is important for the economy. They should especially offer incentives to financial institutions and trading companies."

But primarily, the industry needs lucidity, he added. “They need to have clear, transparent regulations in real estate and ensure that buyers' rights are protected."

Palm Jumeirah Crosses 70% Construction

According to Nakheel, the developer behind Palm Jumeirah, 70% of its construction has been finished. A senior official said that the master plan is also being visited.

Marwan Al Qamzi, Group Managing Director of Nakheel Development Projects told, "We have finished construction on nearly 70 per cent of Palm Jumeirah. On our part, we sold a couple of fronds on the project but they still have not been built. It is part of the plan to keep them until we come up with some unique designs compared to what you have seen so far. You cannot freeze the master planning. You have to update it as you go. You have to update to meet market demands and customers requirements.”

The Kingdom of Sheba and Ottoman Palace are the inclusions of this waterfront project. Ottoman Palace is almost complete according to Qamzi. He added, “Both will finish by early April to June next year. The Kempinski Hotel is 85 per cent complete.” Work of Marina Residence started in March 2007 after Shimizu Corporation was awarded the contract in 2006 to construct superstructures, basement, architectural works, landscaping of the project and interior finishing.

Regarding rampant payment issues in the market, Qamzi said the developer was addressing the situation. "We are in discussions with all contractors about delays in payment since there are areas where we need to sit and discuss," he said. The Marina Residences did not benefit from the fall in prices of building materials. "With the change in prices, we have negotiated prices on projects that were led at the peak and at the beginning of the phases. However, this was not possible with the contractor at the finishing stages on the Marina project," said Qamzi.

"This is the last one under construction for the time being from our end," he said.
The final touches on the West side of the project are still going on. "Meanwhile, the East side near the Anchor Marina, which comprises a green area with a clubhouse, will be finished in two months," said Qamzi.The Anchor Marina is expected to berth more than 700 vessels, according to an earlier statement from the company. "The residents of Palm Jumeirah will be accorded priority in berthing," said Qamzi.

The developer confidently remarked that Palm Jumeirah project will witness the island emerging as one of the pioneers in resorts in the coming five to six years.

Ferrari World Abu Dhabi External Structure Completion Announced by Aldar

The completion of the external structure of Ferrari World Abu Dhabi was announced by Abu Dhabi’s chief property developer, Aldar Properties. Ferrari World Abu Dhabi would be the world’s first Ferrari theme park and the largest indoor theme park when it opens up its doors in 2010.The exclusive theme park will serve as the host venue for the inaugural Formula 1 Etihad Airways Abu Dhabi Grand Prix and is located on Yas Island. It is also Aldar’s brand new Retail, Leisure and Entertainment destination.

The structure of this awesome real estate has been inspired by Ferrari GT body covering a surface area of 200,000m2 and also features the biggest Scuderia Ferrari "prancing horse" emblem in the world. The emblem measures 66 m in diameter.Uk firm Benoy is the lead consultant and architect of this amazing masterpiece.

Farah Leisure Park Management LLC (Farah), a joint venture between Aldar and ProFun Management Group will be responsible for the operation of Ferrari World Abu Dhabi.

Ferrari World Abu Dhabi represents the passion, performance, excellence and technical innovation which Ferrari has established over the years. ‘A must-visit venue for zealous families and a multi-sensory experience’ is the perfect portrayal of this property.

Mohammed Al Mubarak, Chief Commercial Officer, Aldar Properties and Chairman of Farah Leisure Park Management LLC, commented:"We are delighted to have reached this landmark in the development of Ferrari World Abu Dhabi. Signature projects like this are another element of our commitment and contribution to Plan Abu Dhabi 2030, by delivering attractions that further enhance the Emirate's credentials as an exciting place to live and visit. We are proud to be a part of bringing Ferrari to Abu Dhabi and giving our citizens and visitors alike the opportunity to share in the passion and excitement of   these initiatives."

Adding to it, Piero Ferrari, Vice Chairman, Ferrari Spa said: "With the inaugural Formula 1 Etihad Airways Abu Dhabi Grand Prix just days away, this milestone is a fantastic demonstration of the blossoming relationship between Abu Dhabi and Ferrari. Abu Dhabi's involvement with Ferrari is emblematic of our collective commitment to quality and tradition linked with innovation and vision."

Marina Residences Units Handover Instigated

The handing over of homes at Marina Residences, Palm Jumeirah, has been instigated by Master developer Nakheel. The first residents are expected to slither in by the end of November according to a top company executive.

"We have started handing over the building and already sent notices to 140 customers. We are expecting the first customer to move in by end of the month," told Marwan Al Qamzi, Group Managing Director of Nakheel Development Projects. He added, “We are also gathering all service providers under one roof so that the tenant does not have to go to many places and almost all the units have been sold".

Qamsi also reported that the handover of 980 units at Marina Residences which is at the tip of the island’s trunk will continue by early next year and the development will observe the moving in of 2000 residents on the Palm Jumeirah. "Our focus is on delivering quality communities and the handover of Marina Residences marks another major milestone on Palm Jumeirah.Going in to the New Year we are pleased to welcome more families into this growing community."

The development figures in six residential towers having 980 units in all out of which 940 are a blend of penthouses and apartments. The most luxurious penthouses offer more than 14000 sqare feet of living space which are designed over four floors. Palm Jumeirah is now an abode to more than 12000 residents. Around 40 townhouses are positioned along the marina faced promenade.

Burooj plans to develop middle-class projects

The real estate right hand of Abu Dhabi Islamic Bank (ADIB) and the developer supporting multifaceted realty ventures in the UAE and Middle East, Burooj Properties held its annual planning workshop. The event focused on the earlier achievements of the company the future plans taking into account the present condition of the market.

The members of Buroojs Board of Directors, including Chairman Mr Khamis Buharoon, Deputy Chairman Mr Khaled Khouri and Managing Director Mr Adel Ahmed Al arouni,as well as Mr Tirad Mahmoud, CEO of Abu Dhabi Islamic Bank, and board members, Mr Mohammed Ismail Al Fahim and Mr Masarat Husain attended the two-day workshop.

Highlighting the workshop, Mr Adel Ahmed Al Zarouni, Managing Director of Burooj Properties, said, "It is critical for property developers to stay abreast of the latest developments and changes in the real estate market, and even more important is to regularly convene a roundtable for all parties involved in the company’s growth and expansion to evaluate previous achievements and discuss future plans. We at Burooj have committed to holding such meetings on regular basis."

Said Al Zarouni: "Based on our evaluation of the market reality and potential, we have agreed to continue development works in the Abu Dhabi property market and to target middle income groups through a series of residential projects that cater to the needs of the this growing market segment. Demand for freehold residential units in Abu Dhabi is also increasing in response to the recent regional market changes and the proven resilience of Abu Dhabi real estate sector."

"We are also looking at the possibility of working in property asset management," he added.

It was also announced by Burooj Properties that its Burooj Views project at Al Reem Island in Abu Dhabi is ready to be delivered to customers in the first quarter.

Special Committee to Protect Investors

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai announced a verdict to institute a special judiciary committee which will oversee issues concerning the property cheques in Dubai. Consequently, this will help in protecting the interests of the investors.

The action was appreciated and welcomed by Asma Abdul Rahman Bahassan who is working in the leasing section of a real estate company. She also commented that the step would propel a positive indication in the market. Adding to it she also said, “A lot of times, cases of bounced cheques are either unintentional or out of the investor's control. The popular mode of payment is through post-dated cheques. Often such cheques bounce as investor's forget about their financial commitments and do not maintain the needed amount of funds in their accounts.”

Asma also felt that the committee would offer relief to landlords, police authorities as well as the real estate companies.

Agreeing to this, a Dubai based mortgage supervisor, Mohammad Neyaz Sarwar, added, “Whenever you come across such an announcement, it gives you a good indication of things to come. Hopefully, we will have more laws in the future that address other issues in the property market."He further said, “Most people do not default on their payments intentionally.”

Moreover in the framework of financial crisis of the globe, Sarwar said, “many international investors ran short of funds in the previous year and were unable to make the payments. Nobody would commit such an act willfully as he or she would not want to leave the UAE. It is a country of opportunities, and people have come here for a better lifestyle”

Jitendra Gianchandani, a property investor and managing partner of a real estate firm in Dubai commented, "This is a clear message [to investors] that the government is serious about the issues faced by the property market.”

World’s Tallest Building to open on 4th January 2010

Burj Dubai, world’s tallest building will finally open up on January 4, 2010. The date happens to be the fourth anniversary of Sheikh Mohammed bin Rashid Al Maktoum becoming the ruler of Dubai, the Vice-President and Prime Minister of Dubai. Emaar Real Estate Company is actually paying gratitude towards the ruler who has proved to be the builder of modern Dubai by launching the majestic tower on this day as said by its Chairman, Mohammad Ali Al Abbar.

"We decided to inaugurate the world's highest tower during an anniversary that is dear to the hearts of everyone. The Burj Dubai reflects the ambitious vision set by His Highness Sheikh Mohammed bin Rashid who had been "the first supporter of the company and all of its projects since its inception" Emaar chairman Mohammed Alabbar said in a statement.

The 164-storey structure became the tallest in the world in mere 1,276 days due to the effort of over 5,000 consultants and skilled construction workers. In a single month from 2004 when it started, the tower had surpassed the Sears Tower in Chicago with the most floors in the world. It reached 100 levels in by 2007.

Burj Dubai offers Giorgio Armani’s The Armani Hotel and Residences along with other residences and commercial places. It also affixes Downtown Burj Dubai, popularly described as the new “heart of the city”, which is a busting community and s Dh73 billion mixed-use mega project. Known by many names Burj Dubai will be called as home by only a fortunate group of people. The goal of the developers has been not only to develop the world’s highest building but also to symbolize the world’s highest aspirations. The tip of this tower will be visible 60 miles away and its external size covers the area as big as 17 football fields.

Free Legal Service Launched by Dubai Land Department

Dubai Land Department has announced the introduction of a ‘pro bono’ free legal service to support the masses involved in the real-estate related litigations. The details of the proceedings were finalized by the senior officials and representatives of professional law firms in the meeting to be held in the Land Department Deira headquarters on Wednesday. The meeting brought out an agreement to become a part of a new Legal Care Group. The cause aims to serve the members of public with genuine real estate issues who might otherwise be deterred from having recourse of the law due to the exorbitant fees. A group of volunteers will bring together senior lawyers, professional firms and consultants to offer free legal services.

Mohammed Sultan Thani, Assistant Director General of the Dubai Land Department, said:"The objective of this initiative is not merely to meet a need but to ensure fairness and justice is available to anyone who might have a concern which involves property, no matter their circumstances. This reflects the Government's commitment to ensuring there is in place a comprehensive equitable system of legalizing ownership and property transactions."Mohammed Sultan Thani added, "Now, no one is prevented from pursuing their rights merely because of the possibility they might be priced out of the legal system. The professionals who attended the meeting were extremely positive about this initiative and are being very generous in committing themselves to it and in volunteering their time."
He also stated,"As professionals they recognize their responsibility to the wider interests of the community and to ensuring that it is not merely perceived as fair but that in actual fact it acts in a way which is fair to everyone,"

The meeting held last week was attended by representatives of leading national and international law firms, including Al Tamimi, Norton Rose, Trowers and Hamlins, Lawyerpoint, Clyde and Co, Afridi and Angell and Hadef Al Daheri and Associates. Consequently,an agreement on the structure of the group, the services to be provided and its relationship with the Land Department was finalized by the committee members. The move brings the local system in line with 'pro bono' services arrangements available in territories such as parts of Europe and North America.

Mr. Emad Eldin Farouq, the Land Department's Senior Legal Counsel, said, "Lawyers are by the nature of their profession committed to serving justice and to protecting rights irrespective of the interests ranged against them. This initiative by this group of lawyers reflects that commitment and their bigger responsibility to ensuring there is justice and stability in the community."

"Dubai has given all of us as lawyers a great deal, including the opportunity to practice our profession. We were all agreed it was essential to get this initiative up and running and that it offers each of the opportunity to return something back to the community which continues to offer us so much," he added.

Dubai Properties Chairman Arrested

The Chairman of Dubai Properties, the state-owned developer, has been arrested on suspicion of offensive financial dealings, as reported by news agency Bloomberg on Friday. According to Dubai Attorney General, Essam Essa al Humaidan, Hashim Al Dabal  was arrested ten days ago and is now being interrogated.

Humaidan added, “We are questioning him almost daily and Mr. Al Dabal indicated he is ready to answer questions without having a lawyer present. We’re still trying to determine the extent of Al Dabal’s misconduct. When the investigation is complete, all details will be announced.” Further adding to this, he also added, ”The investigation is being “conducted swiftly and, God willing, it will be concluded soon and Al Dabal will be allowed to meet with a lawyer as soon as he appoints one and his family is allowed to visit him.”

An investigation had begun last year, to determine the corruption in real estate companies, which benefited from heaving demand after foreigners were allowed to buy property for the first time. Consequently, many officials were arrested including Zack Shahin, former chief executive officer of the emirates’ second-biggest property developer, Deyaar Development, and Adel al-Shirawi, former CEO of mortgage lender Tamweel.

Al Dabal is being held at detention center. He can be held for 21 days after which he must appear before the judge.

Meanwhile, the acting chairman appointed by Dubai Holding is Ahmad bin Byat. Subsequently, the CEO of Dubai Properties LLC, Khalid Al Malik will report to bin Byat.

Emaar Properties, the builder of the world’s tallest buildings nearing completion in Dubai, is on the edge of combining with Dubai Holdings along with two other state-controlled competitors, Sama Dubai and Tatweer. The move is aimed at controlling the supply of new buildings in Dubai in the midst of the flood of homes which coerced the prices of Dubai 50 percent lower.

Gazumping- A New Way to Force Up Prices

The premium Dubai properties are pushing up sale price after the settlement of the final figure with the buyer. The practice popularly known as “Gazumping” has given way to the price rise of around 15% as reported by real estate agents.

The term was first heard of in UK in 1980s and early 1990 when property prices were jaunty. Gazuming often results in the loss of money, spent on pre-approved mortgages, for the original buyer .It involves a seller withdrawing of an agreed sale after accepting a second higher offer.

"In the last month, we have seen sellers of high-quality units failing to honor their commitments.Eight or nine of our high-value deals have gone sour. In most of the cases the owners randomly increased prices by eight to 15 per cent,” told Parvees Gafur, Executive Vice-President of Sales.

"There have been cases in the past few months where the seller has increased the price by 10 to 15 per cent. But none of our deals have gone bad since we had other listings in the particular area", added Vineet Kumar, Asteco's Head of Sales in Dubai.

Saeed Mirsaeedi, Investment Manager at Sherwoods Independent Property Consultants, said: "We have seen instances where the seller has increased the sale price after listing at a certain price. They have also been removing their listing in order to wait for the market to recover rather than sell at a lower price."

Gafur said, “ There was a shortage of high-quality finished units and as a result sellers were listing their properties with a more than one agent. In most of the cases property owners do not give a written commitment to sell a unit at a particular price.”

"A seller gives a verbal commitment of the price at which he is ready to sell. We then take about three to four days to find a buyer. During this period the seller goes to other agents who may say they can obtain a higher price, and so when we contact him with a buyer, he rejects the offer," said Gafur.

Realty Laws by Early Next Year in Abu Dhabi

According to a legal expert, Realty laws in Abu Dhabi like those dealing with escrow accounts, brokers, strata title and mortgages is expected to be executed by near the beginning of next year.

David Nunn, Partner of Simmons and Simmons stated, “Currently, the Department of Municipal Affairs has confirmed the real estate laws are under consideration and so we can assume that they are in draft phase. I am not aware that the planning and the building regulations law have yet been drafted although I believe that the underlying regulations have been worked out,"

As per Emirates Business reports of December last year, five draft laws have been concluded to manage the realty sector in Abu Dhabi. The laws will set regulations for real estate developers, contractors and brokers. In addition to it the rules will also check the off-plan sales, licensing of high-rise residential towers and property registration.

"I anticipate all these new laws although there was scope under the existing law 19 of 2005 to introduce regulations dealing with some of these matters," he said.

The new laws will be imposable once they are published in the Gazette, Nunn said. "I am confident the new laws will be more sophisticated than any real estate laws we have in the region.”

Saadiyat Island- Infrastructure to be awarded in 2010

According to senior official from Tourism Development and Investment Company (TDIC), the two main infrastructure packages for Cultural District and Marina Disttrict on Saadiyat Island in Abu Dhabi will be announced by the first quarter of 2010. However, he turned down the request of disclosing any values.

Andrew Seymour, the Director of o Infrastructure at Saadiyat Island added to the matter, “As a client, we are anxious to see what prices we get since it is a competitive market. The contractors are hungry now unlike two years ago. We are taking full advantage of the fact that competitive pricing need to be brought into every single element of the work that we are doing.”

Seymour also told Emirates Business, "Our initial focus was on the Saadiyat Beach area, where we have luxury resorts and golf courses and all infrastructures around the area. It also included Saadiyat Bridge, Khalifa Bridge and expressway. It will all be completed in the next three to six months. The next focus is primarily on Cultural District to support the museums and their construction. At the same time, we will be looking at Marina district. It is a considerable amount of work considering the sizes of the project components.” He further said, ” "In very broad terms, we are looking at continuing the infrastructure work on Saadiyat Island over the next 10 years and are tying in with that. As areas get completed, the verticals of the building and the development above ground will start to occur. We are looking at 2020 for the completion."

However, the main power and water facilities to the island are under construction and nearing completion.

"The transmission supplier built at 400kv grid station and all the cables are nearing completion. Of the four substations, two are nearing completion and the other two will be completed by mid-2010. We are in the first phase of finishing off the huge ground storage tank, which will distribute water across the island. That will finish in 2010. One sewage treatment plant will be completed this month, and the design build contract on the second one has been awarded to Kharafi National," said Seymour.

The Australian-based Thiess Management Services is managing the construction waste management issues and have been imploring third-party contractors to take on various related jobs.

Seymour said:"We have a concrete crushing and waste management disposal system on the island. We are also looking at ways to control waste on the island so that sub-contractors on the island would deliver to one central location, which will minimize the logistical issues and traffic. We also have environmental services through TDIC and our lead consultant Parson to make sure our and third party developers are complying with our environmental mitigation plans. Sustainability will remain our priority along with reuse of construction waste, if possible."

The main issues on the project are logistical issues. However the bigger challenge is being predicted as Saadiyat Island will see more developers and contractors coming in the coming days.