New Law Considers Property Refunds in Dubai

New Dubai property law into consideration has bought a light for hope for real estate investors in Dubai, who would be refunded or would get a property replacement, incase they fall pray to the failing developers. Developers would be financially penalized if they fail to deliver their constructed project on time or to agreed specifications.

The law firm, Al Tamimi and Company, unveiled a newsletter with the proposed law and the conversation between Dubai Land Department’s senior legal advisor, Emad Eldin Farouq and the firm’s head of property practice, Lisa Dale.

According to the legal advisors, the failure of developers on handing over completed properties and buyers defaulting on payment would breed more legal disputes throughout the year.

“There are lessons to be learnt from the crisis and we are emerging with a new legal regime,” said Mr Farouq. “Loopholes in laws are being dealt with and things will become more organised in 2010.”

“2010 is still the year of fighting,” said Michael Lunjevich, the head of the property practice at Hadef and Partners. “It will be about consolidations, legal claims, liquidations and insolvencies. The market needs to clean itself out.”

The proposed law predominantly protects the interest of the buyers, where they are delivered defective property or have had late deliveries. This would lead to financial penalties to the buyer including a refund or replacement property. Also, if the developers refuse to link the construction mile stone with the payment plans, the buyer would be able to demand a cancellation of the contract.

“The investor protection law is being proposed to deal with some specific issues identified last year, where investors needed further assistance in dealing with errant developers,” Ms Dale said. “The granted land system is a tradition in the UAE, enabling nationals to have access to lands for the purpose of building their home or business premises,” Ms Dale said. “However, the system is quite limiting, as there are restrictions on transacting with such land. If you upgrade your title from granted to freehold, you can sell the property to other UAE or GCC nationals, or you can put it into a property fund or mortgage it. It becomes a much more flexible asset.”

The Dubai Land Department also plans to begin regulating property valuers and conveyancers by requiring them to obtain licences, and to create a law to oversee property brokers who handle trust accounts for property deals, Ms Dale said.

Several Dubailand Projects were Handed Over to the Investors in 2009

Dubailand, Dubai’s iconic entertainment and leisure destination and a member of Dubai Properties, handed over several of its projects to its investors in 2009. As per Dubailand, for several projects, commercial, retail and residential units were handed over to its investors. This took place in Al Barari Villas, The Villa, Dubai Properties Group's Leyan and Motor City. In addition, 320 villas were handed over in Victory Heights in Dubai Sports City, Dubailand. Further, 1300 commercial, retail and residential units were handed over in Motor City.

Mohammed Al Habbai, CEO, Dubailand, said: "In spite of the challenging global economic environment, it was an exciting year for Dubailand with a number of important milestones for our investors.

"Our approach has always been to drive local, regional and international visitors to Dubailand

attractions. This year, we have focused on developing inherent demand from within the UAE by building critical residential mass. Dubailand now has exclusive pockets of residential communities such as the Arabian Ranches, Motor City, Leyan Community, The Villa and Al Barari, making the destination an attractive place to live, work and play."

Dubai Properties Group revealed the ready-to-lease residential units like apartments and villas at the Leyan Communities (Mediterranean-themed) located right in the heart of Dubailand.

Dubailand’s development was unveiled by two key highlights. Out of which one was the opening of Dubai Sports City's Butch Harmon School of Golf at The Els Club and he agreement with Royal Caribbean International. The other highlight was the launch of Dubai International Cricket stadium with 25000 seats.

With several such Dubai attractions within the Dubailand is expected a flow of tourists over the 8 million mark it this holiday destination already has.

Dubai Population’s Real Estate Sentiments Show by GRMC Survey

A consumer confidence survey was done on the Dubai residential real estate market by a leading research and business advisory in the GCC, GRMC Advisory Services. They have released the findings from their December 2009 survey. A report is generated, Dubai-Surplus Luxury which draws findings from their December survey of around 1100 individuals in Dubai. It determines the financial circumstances and whether they have left their homes at the time when financial crisis began.

This survey was also done in order to determine that how optimistic the respondents are regarding the economic prospects in Dubai and whether they are planning to invest in some new property in the year 2010. The results revealed that around 68 percent of Dubai’s population households have been unconstructively impacted by the financial crisis which took place.

A minority set has suffered a reduction in their income, 58 percent reported have said that their income remains the same; however, a mere 7 percent cited that it has augmented. The GRMC survey also enquired that how optimistic they regarding their financial circumstances and the results revealed are that majority of them are confident. This optimism has greatly shown the future of Dubai real estate industry. Among the survey conducted a 12 percent of people seems to be interested in purchasing or renting a new property in the year 2010, 83 percent of residents said that they would rather rent a property than purchasing a new one.

Dubai Bank Announces the Opening of Two New Branches

Dubai Bank has recently raised its branch network across the country by announced the opening of two new branches in Dubai. These two new branches are getting opened in order to meet the growing demand for banking operations. According to a statement the lender now has a total of 23 branches in the UAE, out of which 12 branches are in Dubai itself. Mohamed Amiri, the head of retain banking at Dubai Bank said, “The launch of our new branches is testimony to the rapid growth of our customer base and their increasing demand for our services.” He further added, “Our new premises are in prime business locations and will allow our customers in the Sheikh Zayed Road/DIFC vicinity to conduct their banking needs with greater convenience.”

These new locations at the Sheikh Zayed Road and Dubai World Trade Centre have further expanded the branch coverage of the bank. One of the two new branches is located next to the Shangri-La Hotel on Sheikh Zayed Road and the second new branch is ideally positioned at Dubai Convention Centre which is an ideal banking destination for both retail banking and business banking customers. The branch on the Sheikh Zayed Road incorporates a dedicated Royal Banking Section.

Recently Dubai Bank has been named as “Best Islamic Bank” by Ethos Consultancy. Both the newly opened branches offer a wide range of corporate, business and personal banking facilities or services. Cash deposit machines and 24 hour ATM’s are also available. The Head of Branches of Dubai Bank, Tariq Al Farsi said, “Our new branches are in line with the bank’s vision to increase our presence in the UAE and to be closer to our customers. Last year, we opened two branches and we are happy to continue the trend this year, while maintaining our focus on serving our customers' needs.” He further added that a total of 20 employees will serve the customers from two new locations of the bank.

Dubai Property Prices Could Fall: Banks Become Aggressive In Pursuing Repossessions

From the current levels, the property prices in Dubai could fall by another 30 percent. According to the analysts by the end of the 2011, somewhere around 150,000 homes could be lying empty. The UBS has forecasted that there will be a blow to the emirate’s property market with the prices down by up to 50 percent. It is also reported that Palm Jumeirah which is one of the most iconic developments in Dubai has seen its first repossession.

An analyst Saud Masud said, “We reiterate our view that by end of 2011 Dubai property oversupply on residential and commercial properties may reach roughly 40 to 50% and house prices may decline another 30% from current levels.” He further added, “We estimate total Dubai housing supply by the end of 2011 to be roughly 360,000 with oversupply potentially at 150,000 residential units.” Property investors in the UAE may find it cheaper in the auction market up to 40 percent as higher default risks ignite to more bank repossessions.

The bank sold the apartments in the exclusive man made island Palm Jumeirah for AED745 per sq ft which became a symbol in Dubai real estate market. Last week the owner’s bank took over the three bedroom apartment in Al Shala on the prestigious development. It was taken back after he failed to resolve the Dhs1.7 million of outstanding debt. Quickly the bank moved to shift the property. A number of repossession orders on properties in Dubai have been won by the UK based Barclays and now the banks won’t hesitate in order to follow the suit.

According to a banking analyst at an investor service, Antoine Yacoub banks will now become aggressive in practicing a legal action. They were trying to restructure most of their loans, however, once a precedent has been set, more cases will be encouraged to put through.

Hybrid Cars to Join UAE Ministry’s Fleet

This year a new addition is commenced as a group of environment friendly hybrid cars will soon be launched in the vehicle fleet of the Ministry of Presidential Affairs in the UAE. It has been announced by the Ministry that these hybrid cars will be introduced which is a part of the commitment in order to introduce the best practices on protection and sustainable conservation of the environment. The delivery of a number of these cars will be taken by the protocol department.

These hybrid cars will be used in transportation of high profile state visitors and VIP’s. This move is in accordance with the H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs which in turn is to create a clean and safe environment, in order to match up with the standing of and the reputation of the United Arab Emirates globally. There is another initiative by the Abu Dhabi Crown Prince’s Court and the move is also synchronized with that.

The policy of introducing hybrid cars aims to save properties and lives and the basic aim is to preserve the environment and natural resources. The occupational health and safety standards (OHS) will also be improved and modern technology is applied to lessen the noise pollution created by various modes of transport.

A positive message is transferred by this move to both public and private sectors and to foreign visitors about the sincere efforts by UAE in order to protect and conserve the environment and natural resources and to adopt the sustainable development principles.

Burj Khalifa Unit Rents to Outdo Other Established High Rises

The lease rates for the world’s tallest tower, Burj Khalifa are yet to be decided. The analysts have a strong believe that for commercial spaces in this tower, in Downtown Burj Dubai, the expected rental rates will beat the current on-going rental rates in various other established high rise building structures which includes Sears Tower in US and Petronas Towers in Kuala Lumpur. The office space in Burj Khalifa is expected to fetch an amount which is double that of the other competing high priced units across the world. On an average Dh600 per sq ft is expected.

The Manager, Commercial Leasing at Better Homes, Porush Jhunjhunwala told the Emirates Business, “The rates are still unclear at the moment. We expect the rental to be around Dh600 [$163] per sq ft plus depending on the floor level.” He further added, “The average office price around the world is between $30 and $40 per sq ft and in signature towers such as the Petronas in Kuala Lumpur and the Sears in Chicago, it is around $60 and $85, respectively.” He said that “Rentals for Burj Khalifa will depend on the demand and supply in the tower. As of now, we have received a lot of interest from large corporates, who are enquiring for office space in this prestigious tower. It is still too premature to derive at a rental what this tower will command.”

As far as the commercial rent is concerned, the height of the floor will also play a major role in determining the commercial rent. Jhunjhunwala added, “The expected premium should be around five per cent as you go higher by five floors every time.” Service Charges is another major factor which comes into play, however it’s unclear at the moment. If we talk about the residential units, these are expected to appreciate soon as delivery dates are set from next month onwards.

Dubai to Host Louis Vuitton Race

The global sailing spotlight will be back in Dubai as the esteemed Louis Vuitton Race, which is just second to the America’s Cup is coming in November. Dubai International Marine Club (DIMC) will be the venue for this prestigious sporting event with support of Emirates Airlines. It will start from November 13 to 28. The Chairman and Chief Executive of Emirates Airlines and Chairman of DIMC, Shaikh Ahmed bin Saeed Al Maktoum said, “This is a real coup for Dubai. We are honoured to be part of this fantastic event which has rapidly emerged as a renowned spectacle of sport followed by millions around the world.” He further added, “Emirates is no stranger to sailing having been involved with Emirates Team New Zealand for the past six years. We are also looking forward to welcoming our very own Emirates Team New Zealand back to these shores and, having won the Louis Vuitton Pacific Series in Auckland last year, confidence will be high coming into this event. It is exciting to be strengthening our commitment to the sport further.”

The CEO of DIMC and President of the UAE Marine Sports Federation, Saeed Harib which is hosting the race is pleased for the growth of the sport in the region. he is focused in organizing the best sailing race ever. The CEO and Chairman of Louis Vuitton, Yves Carcelle said, “Louis Vuitton has been present in Dubai for more than 10 years. In 2010, we are thrilled to maintain this relationship through a great sailing event. Dubai deserves an event of this category because Emirates Airlines has been behind sailing for the last few years. We are really thrilled at their support for the arrival of Louis Vuitton Trophy to Dubai.”

The Louis Vuitton Trophy is split into five day rounds followed by semi finals and then finals. This event will mark the starting of the Sea Dubai Water sports Festival.

Phase I of the Logistics Park is to be completed by CPL

Centre Point Logistics (CPL) is a supply chain services and logistics company in Dubai. One-third of the flagship 2.1 million square feet property is about to be completed as it’s expected by the logistics company. This property is a logistics park in Jebel Ali Free Zone. As the official said the property will be completed by the end of this year. The Managing Partner of Centre Point Logistics Dubai, Brent Pearson told “We expect Phase I of the park, which is around 30 per cent of the 2.1 million square feet facility, to be completed by the end of this year and we believe our business model supports our target. In regards to our investment returns, I'm confident that by the end of this year we will have a customer base that will enable us to meet our targets.”

Last year in Q4, the construction of this logistics park was launched and for the construction of the warehouses, site preparations are also being done. As far as the cost of the project is concerned, he further said, “Finalisation of some contracts with the contractors is going through at the moment. Therefore, the final cost hasn't been worked out. Nevertheless, it is expected to be in the vicinity of a couple of hundred million dirhams." For the warehousing facilities the firm has already started receiving interests from customers. The firm would be able to finalize few deals with both regional and international customers.

Regarding the funding of the project, Brent Pearson told, “We have spoken to a number of finance providers. Obviously bank financing is more difficult in this environment, so we're putting in our own equity and looking at the various options. Any financing we may obtain will be Shariah-compliant which can include come investment banks, Islamic banks, and private equity both based in Dubai and outside the UAE.”

If we compare the logistics sector in the year 2010 with the previous year, he said that the year that had passed was a year of fluctuations. He also told that the firm currently is negotiating for building warehouse facilities in other countries as well.

Changes Witnessed in Property Scenario of Dubai

Dubai is one of the steadily and consistently growing economies in the world and is witnessed as a great business centre. The global environment of the emirate has in turn contributed a massive influx on people and businesses from all over the world. Dubai real estate sector as we all known play a major role and at times there are consistent figures in order to prove the changes witnesses in the property market in Dubai. If we talk about the changing price scenarios, Dubai property prices since the start of 2007, have surged 79 percent. By the year 2010, these are likely to fall by 10 percent on various real estate units.

Moreover, if we look at other from other perspective, then property in Dubai is the fifteenth most expensive real estate market in the world. However, in 2009, the property rates for the residential units are all set for a downfall. If we look at the current scenario, the real estate prices have begun a downward journey resulting in a dip of 15 to 20 percent by the year 2011. The state of the market concluded that the prices are likely to hit the bottom during Q4 in the year 2009.

Various leading real estate agencies and property developers have said that the impact of the global slowdown in sale of real estate projects and these cutbacks will affect up to 50 percent of few of its departments. Regular property market evaluations are done by industry experts and they keep on evaluating the updated property market research and scenario. Moreover, different evaluations can be done in case of rental and sale properties as their market trends might differ from each other.

For more property rates in Dubai, contact us.

Abu Dhabi Land Announces the Completion of Two Mega Projects

Abu Dhabi Land is a part of the Royal Group which was founded in the beginning of the year 2006. This company is a general contracting firm that offers construction. This UAE based contracting giant announced that the Rock revetment works at Dolphin Island, Dredging, Reclamation and Coastal Protection for the Marina Square at Reem Island Sector 1. In the year 2008, Abu Dhabi Land was awarded the Abu Dhabi real estate projects by Tamouh Investments for the Beach works and the coastal Protection at Marina Square Reem Island respectively.

The surrounding areas of the dolphin island project were searched in order to form accessible channels in order to retrieve the island to the required levels and limits.

Abu Dhabi Land is quiet responsible in every aspects starting from the end to end design to technical submittals, commissioning, procurement, delivery and this goes with both the projects. The CEO of Abu Dhabi Land Mr. Syed Basar Shueb said, “We are pleased with the timely completion of these landmark projects and congratulate everyone involved on this mammoth achievement.”

The Marina Square coastal protection works comprises of a sea wall of 1,700 l.m. for shore protection, however, for its safeguard there are Rock Groins and Decorative Panels of its 270 l.m. Beach. At the northeastern coast of Abu Dhabi, Al Reel Island is located and Marina Square is its first part that is to be constructed. The responsibilities of Abu Dhabi Land’s include he construction of the craft marina which has a diameter of about 180 meters. It has a total of 22berths that includes guide piles, pontoons, gangways, a super yacht marina with 12 berths which again includes gang ways, pontoons and guide piles and last but not the least a water taxi courtyard with 7 berths.

Sponsorship of Dubai Shopping Festival 2010 Announced by Al Rostamani Group

The Al Rostamani Group is one of the most prominent and leading business entities in the Middle East region which has once again set the sponsorship of the shopping festival in Dubai this year in 2010. The shopping festival this year will celebrate its fifth edition. Since 1997, this group has been a key sponsor and it is one of the oldest business units in the United Arab Emirates. The group was founded by in 1957 by the Chairman Abdulla Hassan Al Rostamani and has steadily grown over last 50 years.

The group has diversified their portfolio in terms of business including heavy equipment, trading, foreign exchange, travel, infrastructure development, IT services, telecommunications and a lot more. The Chairman of the Al Rostamani Group Mr. Marwan Abdulla Al Rostamani said, “Dubai Shopping Festival, launched in 1996 through the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, was an exceptional initiative to enhance the economy in general and the retail and tourism sectors in particular. Over the years, this initiative has marked many milestones to become one of the recognized festivals in the world.”  

The Rostamani Group has become successful due to their joint ventures, capability to build longstanding alliances and with license agreements with worldwide organizations including Renault, Tata, Blue, Avaya, Suzuki to name a few. These relationships have been carefully carried out since then keeping in mind their relationships with the people in the UAE. The Chairman of the group further said, “Al Rostamani Group’s sponsorship of DSF is part of our continued commitment towards this unique event, supporting the government’s initiative in positioning Dubai as a leading city in the world today.”

With an employee base of about 4000 the group fosters and the diversity is strengthened and spread across the globe.

Abu Dhabi Gets Tough on Hygiene Rules

Specific food safety norms have been laid down by ADFCA and in order to tighten the loop, inspectors carried out field operations in the capital city. A number of shopkeepers at the Mina Fruit and vegetable market in Abu Dhabi were warned as they failed to comply the prescribed safety standards for food. Abu Dhabi Food Control Authority (ADFA) has also fined some of the violators. The ADFCA has inspected a lot of shopping centers at different places; however, most of them including vegetable and fruit market were adhering to the specified rules. The ADFCA inspectors were accompanied by a team of photographers and reporters with them.

The spokesperson of the ADFCA, Mohammed Jalal Al Reyaysa said, “We fined shopkeepers as they left rotten goods inside the shop and put commodities disorganized which led to decaying of other food products. This is against the prescribed hygiene conditions.” According to him, “We fined a shopkeeper at a shopping centre in Khaldiya area as its workers failed to refrigerate goods properly and not keeping eggs under required temperature of 4-10 degrees Celsius. They put it outside the refrigerator. We also found insects inside the shop.”

There are training courses going on and the authority is currently planning to complete these courses in the area of food safety so that they can be trained on how to maintain food safety and provide it to the end users in healthy conditions. This process is being carried out time and again for food dealers and handlers. ADFCA has allocated a committee in order to keep a check on the development of an electronic food screening system in order to determine its effectiveness. Currently the authority is planning to introduce an electronic food inspection system which is called Shahama in the emirate and ‘PDA’ in Bani Yas. Later this year, this same project will also be implemented in the Western Region of the emirate.

World’s First Armani Hotel to Open in March, 2010 in Dubai

This would be the first hotel in Dubai to open under the collaboration between Emaar Properties PJSC and Giorgio Armani S.p.A. The hotel will exclusively be housed in the unique Burj Dubai tower which itself is the world’s tallest building and it will be launched officially on March 18, 2010. The launch of this Armani hotel has been recently announced. This Armani hotel in Dubai will be the first in the series of resorts, hotels and residences which are designed by Giorgio Armani.

These hotels and residence places will be opened around the globe thus, marking the debut of the fashion maestro Giorgio Armani in the hospitality industry. These hotels will deliver highest standards of luxury and excellence and his Dubai hotel will be the most exclusive destination within the city. The opening of this hotel in Dubai will be followed by the launch of the Armani Hotel Milano. Other than the hotel, various other projects are there which are underway. It includes first ever Armani Residences villas, planned for Marassi in Egypt and secondly first Armani Resort, planned for Marrakeck.

Apart from these, gradually the Armani residences, hotels and resorts will subsequently open in almost all important international destinations including Shanghai, New York, London and Tokyo. The Armani Hotels & Resorts was established in the year 2005 with an objective to construct and operate an exclusive chain of resorts, residences and hotels across the globe especially in the world’s most important holiday destinations and cities. Within the next ten years, the Armani Hotels & Resorts are planning to open at least ten resorts and hotels, thus delivering world class and high quality services and hospitality. Moreover, online bookings for the Armani Hotel Dubai will go live late January 2010 and the prospective visitors can register online.

Tameer’s The Imperial Residence Venture on Schedule

One of the leaders as a property developer of the Middle East, Tammer Holding Investments LLC, declared the scheduled progress of The Imperial Residence in Jumeirah Village South featuring 28 storey towers with 4 storey podium.

The Imperial Residence will abode 510 apartments in all which will offer a broad choice of highly urbane, contemporary and spacious studios along with 1, 2 and 3 bedroom apartments including 2 and 3 bedroom duplexes. A significant range of facilities and amenities can be accessed by the residents. The facilities and amenities included will be recreational areas, swimming pools, 2 gyms, children’s playgrounds, 24 hour concierge and undercover parking. A variety of retail shops will also be located on the ground floor of the building with a stunning outdoor area as well.

The president of Tameer Holding Investment LLC, Federico Tauber said, “It gives us true pleasure to announce that the work in progress at The Imperial Residence is moving forward as scheduled. Construction activities are advancing on both towers where floor slabs have been cast up to level 22. Podium work, block work and internal activities are also progressing simultaneously on the lower floors."

He added, “The Imperial Residence epitomizes TAMEER's commitment and effort to constantly innovate with architectural creativity. The four tower cranes and 400 workers have been working multiple shifts and have achieved remarkable progress in order to meet the project deadline.”

The Imperial Residence overlooks Al Khail Road and almost all the iconic developments in Dubai along with an Emirates Road which is easily accessible. The development lies a little away from the novel Jumeirah Golf Estate, Mall of the Emirates and Ibn Battuta Mall as well as Jumeirah Lake Tower, Jumeirah Island, Dubai Marina, Arabian Ranches and The Palm Jumeirah. An easy access to Dubai Media City, Dubai Internet City and Jebel Ali Free Zone is also offered by The Imperial Residence.

Dubai Forum After Opening of Burj Khalifa Delineates Sustainability Trends

A leading platform of discussion on sustainability trends in the construction industry of UAE, The Dubai Forum was held in Dubai on 5^th January. There were circa 40 speakers and panelists along with more than 400 delegates from 15 different countries discussing on the ways for obtaining the sustainability in the construction industry of the region.

The event was organized by Brand Dubai focusing on ‘Architecture for Sustainable Societies’. It was held under the benefaction of the Vice President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rahid Al Maktoum and Deputy Ruler of Dubai, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al-Maktoum.

The Chief Executive Officer of Brand Dubai, Mona Al Marri said in her address, “The UAE has the resources required for creating sustainable communities and The Dubai Forum provides a channel to gather inputs in the architectural, design, and planning areas.Taking forward the vision of His Highness Sheikh Mohammed, The Dubai Forum will publish an annual anthology on sustainability and environmental development in Dubai and across the UAE. Our objective is to create a body of work that will benefit professionals, scholars, students, educators and the general public in the Arab world."

The Chairman of Emaar Properties, Al Abbar commented on Burj Khalifa as the Landmark and the mouthpiece of an emphatic message to the world. He said, “It is a new accomplishment that has crowned the list of Dubai's great achievements. Burj Khalifa is not just a symbol of the UAE, but of the entire Arab world. The UAE is reinvigorating the spirit of the Arab renaissance, when our forefathers led the rest of the world in the sciences, mathematics and even architecture."

He while describing the Burj Khalifa as a structure to the creativity of human, said that it has given way to a ‘whiff of fresh optimism to the region’. “The 12,000 people who worked on the project have equipped themselves to take up a daunting task in the construction sector anywhere in the world. When wise leaders stand by their people and inspire them to push the boundaries, the impossible becomes possible. Burj Khalifa proves just that

Property Prices Dubious to Come Down With the Opening of Burj Khalifa

According to a leading property analyst, the opening of the Burj Khalifa is unlikely to topple the prices of the property in Dubai. The reason predicted is that an investor in the iconic tower would be more inclined towards longer horizon of investment and would wait till the market recovers.

The Director Research and Advisory Services of Landmark Advisory, a Dubai based property consultancy, Jesse Downs said, “The impact of the opening of the world’s tallest tower is also expected to be gradual with little immediate and sustainable effect on the sale prices and rents of residential and commercial units elsewhere in Dubai.”

He added, “The average owner of a Burj Khalifa residential unit is more likely withhold their unit from the market. This is usually because they are pursuing a capital appreciation investment strategy and/or use it as a second home.”

Some apartments at Burj were being sold at the price more than Dhs6900 per square foot when the prices of the property were at their peak. About 90% units have already been sold.

It is expected that there may be a short dip in rents after the handing over of the full building takes place. “This is because landlords are typically pushed to reduce rents when occupancies are low as tenants have significant bargaining power and prefer to move into a well occupied building as opposed to a nearly empty building.”

The time when the Burj Views project in the area of Downtown Burj had been handed over in the summer of 2009, a dip in rents was felt.

Downs commenting on the impact of the opening of Burj Khalifa on rents and sale prices of residential as well as commercial units of the nearby areas, said, “while we expect high vacancy rates, especially in the first year, the imminent handover will have a positive impact on confidence by simply showing progress.”

Even more interesting is the fact that the opening of Burj Khalifa has increased agglomeration of economies thereby pushing the markets towards the creation of one primary Central Business District. Downs pointed out, “The launch of Burj Khalifa could not have come at a better time. This is a clear vindication of the hard work and efforts of Dubai and the UAE.”

Burj Dubai Inaugurated and Renamed as Burj Khalifa Transmuting Record Books

Escorted by the dazzling fireworks, Dubai unveiled the long awaited Burj Dubai, the tallest building of the world stretching half a mile in the air. The inauguration ceremony of the tower also gave way to the unexpected renaming of the structure which would now be called as “Burj Khalifa” in order to honor the leader of Abu Dhabi and also the president of UAE.

The building rises 2,717 feet (828 meters) from the desert sands. It can be astutely be called as the “vertical city which can accommodate 25000 people at one time. The building costing $1.5 billion is a property with luxury apartments and a hotel. Apart from this, it is a proud possessor of the world’s highest mosque and swimming pool on the 158^th floor and 76^th floor respectively.

The ceremony heard thousands of applauds accompanies the opening of the tapered spire with fireworks and multicolored laser lights to add to its awe.

The city’s 60year old hereditary leader, Sheikh Mohammad bin Rashid Maktoum believes that the building and its surrounding development will help to augment the reputation among the international investors as well as restore the allure of Dubai as a business hub.

The chairman of the developer of the tower, Emaar Properties, Mohanned Alabbar initially said, “it had more than 200" stories, but he later backtracked to more than 165 inhabitable floors, given its tapered top. Promotional materials sent before the tower's opening said it contained 160 stories.”

As per the developers, the building which is nearly twice the height of the New York’s Empire State Building, is confidently safe.

Greg Sang, Emaar's director of projects, said the Burj Khalifa has "refuge floors" at 25 to 30 story intervals that are more fire resistant and have separate air supplies in case of emergency. Its reinforced concrete structure, he said, makes it stronger than steel-frame skyscrapers.

New Legislation on Dubai Real Estate Rent Cap in 2010

Legislation was issued on Dubai Real Estate cap in 210 by the Ruler of Dubai, Prime Minister and the Vice President of UAE, H.H. Sheikh Mohammad Bin Rashid Al Maktoum, in order to ensure the stability in the real estate market in Dubai.

The decree not only aims to regulate the relationship between tenants and the landlords but also to chart a legal framework for this matter.

The ceiling on the rent increase in 2010 will be set on the same rates as for 2009 according to the decree issued on rental cap in 2009. The Real Estate Regulatory Authority (RERA) was approved by the decree as the main reference to resolve the average rent on which the rental increase in 2010 will be fixed upon.

The increase in rental is allowed only if the price of the property is more than 25 percent below the average index price. If the rent of the property was charged 26 percent to 35 percent less than the average rent of the similar property then the maximum increase will be equivalent to 5 percent of the value of the rent for the year 2009

If the rent of a property was charged between 36 percent and 45 percent less than the average rent for similar property then the maximum will be equivalent to 10 percent of the value of the rent for the year 2009.

Similarly if the rent was between 46 percent and 55 percent less than the average value of the rent for the similar property then the maximum increase will be equivalent to 15 percent of the value of the rent for the year 2009.

If the rent was between 56 percent and 65 percent less then the average value of the rent will be equivalent to 20 percent of the value of the rent for the year 2009.

The decree will get effective from the date of issuance and will also be published in the official gazette.