Realty Firm Oger Dubai Confirms Fallout with Daman

A subsidiary of Saudi Oger Limited, Oger Dubai a Dubai property developer said that a termination notice from Daman Real Estate Capital Partners Ltd. has been received for “The Buildings by Daman” project. It is a multi-purpose project comprising of 65 floors and this mixed-use complex is ideally situated at the Dubai International Financial Centre. The Daman Investments statement was issued on Thursday followed by the announcement.

In the statement the reason for termination of Oger Dubai is also mentioned as a Dubai based private firm had said that this decision of termination was based on the “disappointing performance of the contractor”. For this project Oger Dubai was the main contractor and has refused to agree with the Daman’s position.

A statement from Oger Dubai has said, “Oger Dubai recognizes that the economic conditions for the real estate industry remain difficult. Oger Dubai does not accept that the decision of Daman Real Estate Capital Partners Ltd. was based on the alleged performance related issues, but notes many key factors surrounding the Project. Oger Dubai has performed the works to high standards and in accordance with its commitments.”

Moreover, they have further added, “As this is the first such case that the Oger Group has faced during its long history of operations, Oger Dubai will consider its position and reserves its rights. Oger Dubai will take all appropriate measures to protect its interests and market-leading reputation.”

Oger Dubai was opened by The Hariri family's Saudi Oger Group as a part of the expansion plan of their group. Currently this group operates eight offices in Saudi Arabia, Switzerland, France, Morocco, Jordan, UK and Lebanon.

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.

Significant Progress on Tamani Hotel Business Bay

Dubai Properties newly appointed CEO, Mr. Abdul Wahab Halabi visited the progress of Tamani Hotel at Parklane tower. The impressive iconic development in Business Bay by KM properties has reached the 17^th to 18^th level core walls.

Business Bay, after its full development will become the same as Manhattan or Ginza, the business center of New York or Tokyo. The first phase of Dubai’s incredible revolution into a international hub began with the scouring of the Creek in the 1970s. It is expected that the new extension of the Creek will strengthen the entry of Dubai into the international business cities’ league. Added to its splendor, Tamani Hotel will contribute a lot for the cause.

While inspecting the construction of Tamani, Mr. Abdul Wahab Al Halabi was quite impressed both with the progress of the tower and with the commitment of KM Properties in fulfilling its role in the development of Dubai’s Business Bay. Mr. Abdul Wahab Al Halibi was also keyed up by the status of the project and conveyed his enthusiasm to the team of KM Properties.

The five - star deluxe hotel, Tamani Hotel at Parklane Tower comprises of thirty three storeys. The modern hotel includes commercial offices as well with leisure facilities which offer splendid views of Shiekh Zyed Road’s beautiful and impressive skyline and the new creek area of Ras Al Khor. The world renowned designer Carlos Ott has successfully designed Tamani Hotel and the major construction contractor of the project is Al Rostamani Pegel. The official interior designer who has been appointed by KM Properties is LW Design Group.

According to Mr. Sanjeet Joher, the Group Chief Operating Officer of KM Properties, “We at KM Properties are proud to announce that the project is progressing well. We are moving ahead despite the current economic climate and we are very much ready to create the developments that will form an integral part of Dubai's future Business District which is the Business Bay."

Realty Disputes to Be Sorted By Professional Mediation

The Royal Institution of Chartered Surveyors has declared a new attributed Mediation Training Programme in Dubai in order to help meet the rising demand for mediators in real estate related disputes. The downturns in economy have led to increase in commercial disputes and consequently a surge in litigation and mediation further leading to increased levels of interest and use of arbitration in the UAE especially in the construction sector.

According to Andrew Goodman, Director, Rics Accredited Mediator Training, mediation is a voluntary, non-binding, and private dispute resolution process in which a trained neutral person - the mediator- helps parties to a dispute, or other impasse between them, try to reach a negotiated settlement for themselves, with or without the assistance of their own professional advisers.

"Mediation is both Sharia compliant in its philosophy and well regarded as an established international dispute resolution process," says Andrew Goodman. "Mediation is also truly voluntary, as entering the process does not bind the parties to reach settlement. In most cases mediation cannot take place unless all the parties agree to enter the process, and will cease if one party leaves the process, which they are generally free to do at any time."

Mediator will have no authority to make obligatory determination and therefore, a mediated resolution can come out solely on the authority of the parties concerned. The agreed terms will form part of an enforceable contract once the settlement is reached. Mediation promises not only the client’s but also the professional satisfaction in terms of cost, speed, flexibility of conclusion and confidentiality.

"The role of the mediator and the confidential nature of mediation negotiations helps parties to focus on and realize their true needs and interests which may be far removed from what a court, an adjudicator or an arbitrator might ordinarily have jurisdiction to order," Goodman added.

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.

Damac Properties Begins Cladding for Iconic Property: Park Tower

One of the leading Dubai real estate developer Damac Properties has commenced cladding on its luxurious property in Park Tower situated in Dubai International Financial Centre. The North and South Tower have reached 25 and 22 storeys respectively, being now visible at the DIFC skyline. Damac Properties have got into contract with Arabian Aluminum and the contract is worth Dh120 million. This contractor has the cladding of Burj Arab, to its credit. The Park Tower’s façade would comprise of aluminum and glass cladding. However, externally the building would have double glazed triangular panels set in aluminum framing.

The uniquely shaped two buildings, in this development, are expected to have their construction completed by the beginning of 2010. This development by Damac Property is Dubai’s most swiftly growing financial centre. This stunning property in Dubai would offer 400 apartments for sale in Park Towers and would give their client a huge range of size to choose from. This property would be beautifully finished with double gazed glasses, and would overlook the growing DIFC landscape.

CEO of Damac Properties Peter Riddoch commented on the progress of The Park Towers contruction. He said:
“It is fitting that we should record a double achievement on our twin tower building - with the 25th floor now in sight and cladding on the outside of the building already under way.

Park Towers will be a truly stunning building when it is finished and the cladding is an integral part of its striking design. We are delighted to be working with Arabian Aluminum on this part of the project and also commend the solid progress shown by our main contractor Shapoorji Pallonji - which is even more commendable in the light of their impressive safety performance on site as well.

To have reached the impressive milestone of 5m man hours since construction began without a single Lost Time Incident is a testament to the teamwork and co-ordination on site among all the staff and I want to thank them for the efforts they have made.”

Dubai Property: DIFC Faces 40% Fall In Commercial Rent

According to a report from a leading consultancy firm CB Richard Ellis (CBRE), commercial rents in Dubai International Financial Centre (DIFC) have fallen by 40 percent in the last six months. The report said the rents have fallen by a considerable amount and landlords are offering further diminution on rents.

This property in Dubai is considered the financial hub of the city. It enjoys its unrivalled location, situated in the heart of Dubai city. Dubai International Financial Centre offers world class infrastructure which facilitates various companies to carry out their business effectively. According to Mathew Green, Associate-Director-Research suggested that the rent offered in DIFC is far suitable than several other locations in Dubai. With state-of-the-art facilities offered in Dubai International Financial Centre, it created huge demand for office spaces. The consistency of demand was seen since 2004 and 2008 had a long list of people waiting to book their space. This was mainly due to being located close to Sheikh Zayed Road.

Nicholas Maclean, Managing Director of CBRE said during the past one year drive in the market has been primarily from the financial sector, as several companies want to be situated close to DIFC. Other developments such as the business district of Downtown Burj Dubai- Emmar Square has created considerable amount of demand for office spaces. Not forgetting, Business Bay is one of the most renowned locations for office buildings in Dubai city. Since, all these developments are located on the Sheikh Zayed Road soon they would compete with the new World Trade Centre.

The CBRE report stated there has been a fall in rent in Dubai offices by 18%, during the first quarter of the year. The reports said, the landlords of the properties, located away from the business districts, are offering extra incentives to attract tenants.

Dubai Real Estate Buyers Cant Cancel Contracts Under Law No. 9

A legal expert suggested during the Dubai Society meeting held recently, that the Dubai property buyers cannot cancel their contracts under Law No. 9. However, the legal system has been somewhat sympathetic to the developers and given them the liberty to cancel contracts under this law. This decision was taken to discourage people from taking undue advantage of the down market. The only way now to cancel contracts, by a buyer, is by presenting an effective case in front of the court or approach the Dubai’s Real Estate Regulatory Authority.

Law No. 13, Article 11 was introduced in 2008 to standardize the procedure of cancelling the purchase of a real estate contract. However, over the time being there have been several debates on the law’s interpretation by the purchaser and the developer. Therefore, to normalize this situation, ruler of Dubai has introduced Law No. 9 to facilitate the procedure of termination of real estate contracts in Dubai. All contracts are legally bound by this new law even if the contract was entered before the law was passed, 30-April’09.

Procedure of Cancellation
If the purchaser fails to abide by the terms of the contract, the developer would have to inform the Land Department. The Land Department will then send a notice to the purchaser asking to fulfill contractual obligations within 30days. If the purchaser fails to do so within the stipulated time, the contract may, then, be cancelled.

UAE on a path to recovery

Due to the lowering of the prices of the Abu Dhabi property, the UAE economy is on a path to a U-shaped recovery, as told by Sultan Saeed Al Mansouri, the UAE Minister of Economy.

“While economists continue to debate on whether the global financial crisis is over and how long it will continue to play out, we feel that the worst of the crisis is behind us,” Al Mansouri said, in his speech which was read out by Mohammed Ahmed bin Abdul Aziz Al Shhehi, the director general of the ministry, in his absence. Event was held at the Mega Trends Conference organized by Abu Dhabi University to throw some light on the impact of the universal economic crisis on the economies of countries in the GCC.

Al Mansouri’s speech said: “We do not harbour any false illusions that the days ahead will be easy or less difficult. We have all learnt our lessons and it will be hard to forget those easily. The most important lessons from the crisis have been the need for corporate and governmental accountability and transparency.” He said that the government is dedicated to shield the concern of the business community, while it is also paying attention on the economic and social welfare of the people.

Proceeding further in his speech, the minister mentioned that the motto will prolong to be diversification. “We will concentrate on diversifying our revenue streams through focused investments in several high-growth sectors. The country has already recognized and acted upon the importance of diversifying the sources of energy, while oil revenues have been the driver of growth, we set on a course of diversifying our economy, which is reaping rich rewards today.”

Considering the rise in competition for FDI in the region, Al Shhehi said that the UAE has everything that is required to make the nation more enticing to foreign direct investment.

Dubai introduces special property contract

Dubai has planned an introduction of a simplified contract that would become the plans to introduce a simplified contract that would become the custom for all property related purchases in the emirates as reported by the Gulf News. The Dubai Land Department has drawn up the approval of the standard contract, whose approval is awaited and it will clearly set out the terms for both sellers and buyers, said Emmad Eldin Farouq, department’s senior legal advisor. It is believed throughout the department that the standardized contract would make it more difficult for buyers to try to get out of the matter of signed deals or to add some fine prints to existing contracts.

The standard contract, which will be used for all the sales of property in Dubai, has been drawn up by the Dubai Land Department and is waiting for approval, according to Emmad Eldin Farouq, senior legal advisor at the body. The budge would diminish the number of developers and buyers back-tracking on deals which are signed, as the contractors signed deals, as the contracts would be clearer and apparent before signing, he added in a conversation with UAE daily Gulf News. "The contract is ready and we are waiting for directions," said Farouq.

Lawyer Michael Lunjevich, partner at Hadef and Partners, commented: "The standard contract is for finished properties between the buyer and the sellers. So it will have standard terms in line with market norms and then any changes will go to a separate segment to make it fair," Although signing one fundamental contract will undoubtedly make verve less complicated for developers and buyers, it will also cut the number of quarrels in the marketplace.

Despite the thinning up of contracts related to Dubai property, the land department and Dubai's RERA ( Real Estate Regulatory Authority) say that the burden rests with the buyer to ensure they go through the contract precisely before signing.

UAE nuclear energy plant seen ready in 2015: International Atomic Energy Agency

The united Arab Emirates, Dubai has informed the International Atomic Energy Agency, that it plans to have the first nuclear power plant to be functional in 2015, according to an IAEA official, while the organization believes that it is optimistic.

‘The UAE government told us that the plant would be ready and generating power by 2015,’ Ali Boussaha, a director at the IAEA, told Reuters on the sidelines of a conference in Dubai. I think this is optimistic because it generally takes 10-15 years to get people trained and infrastructure in place.The Gulf Arab state was on a fast-track plan to develop nuclear power and was taking technical advice from the IAEA,’ Boussaha said.

2017 is the latest date estimated by the industry for setting up such a plant in the UAE. Barack Obama, the President of US gave an approval on Wednesday for a nuclear energy deal with the UAE worth billions of dollars to US energy companies. The UAE, ranks at the third position for being the largest oil exporter, and now is planning to create several nuclear reactors to meet the need for an extra demand of 40,000 megawatts of electricity by the year 2017.

GE and Westinghouse Electric Co, a subsidiary of Toshiba Corp, the US builders of nuclear reactor, stand to hold a big share of the much expected $40 billion market if the deal is approved by Congress. Suez, France’s Total, Suez, and state nuclear reactor maker Areva said previous year they had made a plan to create two third-generation nuclear reactors in the UAE. The UAE has said it plans to launch an agency worth $100 million to get involved into the development of nuclear energy to appease the rapidly rising demand for electricity with the growth of industry. The Gulf Cooperation Council (GCC), a unfastened congregation of Arab states comprising the UAE, said it was studying developing a combined nuclear energy programme in 2006.

Hydra Village Investors Served Legal Threats

Legal notices have been issued by Abu Dhabi-based Hydra Properties to some investors in the Hydra Village project informing them that their property will be re-possessed by the developer and the price paid to store the elements by the investors will be forfeited if they would not be able to pay their outstanding dues. This year, Hydra Village was due to be finished with its construction but somehow the date of delivery has been delayed by two years. A document was sent to some investors by electronic mail and it said: ”The unit/s allotment… stands cancelled and Hydra Properties has absolute and unfettered right over the said unit/s, including but not limited to re-sale of the said unit/s to any third party."

It says: "…your purchase reservation agreement stands terminated" and "the reservation amount and installments paid… are deemed forfeited to Hydra Properties".

The newly formed Hydra Investors Group, that was joined by an investor lately, and he on the condition of being anonymous told Emirates Business: ” I was called by a Hydra executive last week and asked to pay the dues in the next few days or else they would take away my unit. The first time I received a call from Hydra was last year, but last week I was called twice. First they asked me about my situation and the next time they called to ask me to pay 50 per cent of the contract value or else they would cancel my unit. I never had any contract with them or any other communication about the project's progress. Now they ask me to sign a contract with clauses that are totally in favor of the developer. They are even not offering me time to review the contract."

Ahmed Khalil, Hydra's Commercial Director, confirmed that his company has sent legal notices to a few investors who had defaulted. "We are ready to help them and they can meet us by making appointments. We will be handling their issues on an individual basis. We have offered them revised payment plans and are even helping them to get finance from banks," he said.

Asked why the project was delayed by almost two years, Khalil said the master plan had undergone changes and as a result the timeframe for completion changed to the fourth quarter of 2011.

Nakheel drives the Can Collection Drive of the Emirates Environmental Group

The master developer of Dubai, Nakheel, has declared its support of the Emirates Environmental Group’s (EEG) Can Collection Drive for the year 2009. This will observe Nakheel communities and offices donating their cans throughout the month of May to the not-for-profit organization whose principle is to raise awareness of the issues related to environment in the Gulf region. The project is a part of the Nakheel’s Recycle it! Program which barred over 3,500,000 kilograms of waste from entering Dubai's landfill sites during 2008.

This significant accomplishment was made achievable by the unbeaten partnership between Imdaad Environment, its main waste contractor and Nakheel. Nakheel, the master developer leads by example when it comes to waste management and requires its many contractors to reduce, re-use and recycle waste wherever possible. The Managing Director, Nakheel Asset Management & Design, Abdulrahman Kalantar, has quoted, 'Nakheel is committed to waste management and has a number of strategies in place throughout or communities and offices to help not only reduce waste but also raise awareness of environmental and waste management issues. We are delighted to be working with EEG to support the Can Collection 2009 by collecting cans from our offices and communities throughout the month. We will also be providing facilities and volunteers for the culmination of the drive on Thursday May 28th’

The Emirates Environmental Group is supported by Nakheel, which helps raising awareness on responsible waste management and recycling, on a continuous basis. Nakheel takes a leading role in the EEG’s community education campaigns each year, and motivates contractors and staff to take part in the EEG’s annual events including Can Collection Drive and Cleaning Up Day. For all those who are interested to take part in this year’s campaign can contact EEG at 04-3448622 or e-mail at eeg@emirates.net.ae .

RERA Plans to Expand Globally

The emirate’s Real Estate Regulatory Authority is planning to become an international reference point when it is the matter of real estate industry. RERA is a regulatory authority that manages licenses and other property related activities in Dubai. This Dubai real estate regulatory body has recently got affiliated to the five organizations which are responsible for regulating the real estate dealings not only in the UAE but around the world. It has also become a part of Menares which stands for the Middle East and North Africa Real Estate Society. The basic aim of this regulatory body is to encourage real estate practices, professionalism and real estate education. Other than this RERA has become a part of various other internationally known real estate bodies.

The director of the RERA real estate sector development department, Mahmoud Al Burai said: “We are in the final stages of establishing Menares. We are aiming to build a professional real estate market and are serious about being first, globally.” He further added “Everyone is looking at Dubai. Everyone is looking at RERA as the reference.” The five organizations in which RERA has joined in are: International Real Estate Federation (FIABCI), Asian Public Real Estate Association (Aprea), World Association of Valuation Organization (Wavo), Urban Land Institute (Uli) and Royal Institute of Chartered Surveyors (RICS).

Al Burai said that the RERA plans of being a global real estate regulatory body were in line with the Vice President and Prime Minister of the UAE, His Highness Sheikh Mohammad Bin Rashid Al Maktoum. Moreover, the exact details of this dealing are still being discussed with other organizations and real estate bodies.

Dubai RERA will be escrow signing body

Dubai RERA is Real Estate Regulatory Authority which was established in July 2007 by the Vice-President and Prime Minister of the UAE, His Highness Sheikh Mohammed Bin Rashid Al Maktoum. RERA is a part of Dubai Land Department that regulates licenses and manages all Dubai real estate related activities and transactions. It has been decided that from now on Dubai RERA will be the escrow signing body. The agreements pertaining to the management of guarantee accounts will now be related between the account trustees and Real Estate Regulatory Authority. This news was reported according to an agency official in Emirates Business 24/7.

The Trust Account Administration Director, RERA, Khalid Al Mutaiwai told the agency official: “The new agreements, titled 'Guarantee Account Trustee Agreements', will mention yearly charges that will now be payable by the trustee banks to Rera. Rera is expected to send out the new agreements to the Account Trustees or escrow banks, in a couple of weeks' time." The new agreements which are coming up will specifically outline detailed information about the management of the guarantee accounts.

As per the guidelines that have been mentioned, four major allowable account heads have been created for the payment out of the escrow account. The escrow account is basically a trust account which is being held in the name of the borrower to pay debts including insurance premiums and property taxes etc. The four heads that have been decided for the payment from the escrow account are: construction, project management, land and sales and marketing. Thus, RERA engages itself as a transparent and an effective regulatory body formulating various entities.

Dubai Commercial Leases dropped by 64 per cent

A report has been generated by the Investment Boutique and Better Homes on commercial Dubai real estate market. In that report it was studied that for commercial Dubai property sector lease rates are likely to drop in the year 2009 at an average of 64 percent and then in 2010 it would further drop 20 percent. The report authors have realized that now that Dubai property market is very unpredictable, the traditional forecasting techniques cannot be applied on Dubai property market. This industry in Dubai moves from approximate immaturity to regulated fields.

The Department of Economic Development highlighted the figures of new licenses issued. The figures have fallen as the number of licenses issued in Q1 of 2009 has fallen by an average of 21 percent per month compared to the same in Q4 2008. Moreover, the white collar office employees are even predicted to fall in numbers. In the year 2009, they are predicted to fall by 237,286 from 280,088 in 2008. Dubai commercial real estate sector also deals with the fact that there is no central business district in this emirate unlike other property and real estate markets. Since the market is rapidly changing, most of the corporations and multinational companies are renting the offices rather than owing one.

Moreover, as the real estate sector is very un-precise, many landlords have now opted for signing short term leases. Companies have taken office space wherever they could afford over the past three years. With this a new pairing of space and businesses has been developed. In addition landlords are expected to implement various different strategies in order to keep their business in profitable terms. Various initiatives which the landlords might take include parking expansion, rent free periods, and long term contracts. These are some of the strategies which the landlords are expected to implement over the coming quarters in order to maintain their business levels.

The Multiple-Entry Visa for UAE Property Owners Abolish Leasing Promises Made by UAE Realtors

Ajman and Dubai real estate developers promised residence visa to several foreigner property investors. However, this process was stopped last year. The real estate developers had these residence visas while endorsing 99 year lease agreement, which now stands nullified.

It was announced on 3-May’09, a foreign property owner can get multiple-entry visa and can renew it any number of times. This decree was applied all across the UAE and these visa woulss start getting issued from 1 June’09. The Ministry of Interior said “The multiple entry visas have a validity of six months. This means the expatriate property owner may stay in the country for six months maximum at a time. But it may be renewed or a fresh visa could be applied any number of times, if the necessary conditions are met", said Brigadier Nasser Al Awadhi Al Minhali, acting director-general of the Naturalisation and Residency Department. He was speaking at a press conference held to clarify the ruling, which stirred up public debate on its pros and cons. "After spending six months in the country, the investor must leave the UAE to return to his home country or any of the GCC countries for at least a month before he is eligible to apply for a fresh multiple entry visa”.

Also, Brig Al Minhali said “The visa costs Dh2,000 for processing. Additionally, the person must obtain health insurance for the duration of his stay in the country. Renewal also costs the same,”.

He said, while the property investor’s stay in the UAE, he/she can sponsor their immediate family which are the children and spouse. However, health is mandatory for all visitors.

Property Owners to Get Multiple Entry Visas to UAE, From June 1

As announced on Monday, UAE would issue multiple entry visas to expat property owners who would meet the eligibility criteria. With the lack of federal regulation, there have been different real estate regulations in each emirate. It’s not only the Dubai real estate sector, but also other real estate sectors in other emirates in the UAE would have standardized law. Therefore, to better regulate the law, the Interior Minister has proposed a regulation which includes six-month entry to expat property owners.

Acting Director-General of Naturalization and Residency Department, Brigadier Nasser Al Awadhi Al Minhali, spoke at a press conference “"The multiple entry visas for expatriate property owners will be issued from June 1, based on the conditions stipulated by the ministerial decree issued on May 2." Also, according to Brigadier Nasser Al Awadhi Al Minhali the decree would apply to all emirates which would stimulate the economy and standardize the rules.

As mentioned earlier the expat property owner would need to fulfill certain requirements to obtain the multiple-entry visa. These rules include:

• The property should be worth at least Dh 1million
• It should be wholly owned by the investor
• The property should be ready to move in
• The villa or the apartment should be appropriate to accommodate the investor’s family
• The investor’s income should be not less than Dh 10,000 or equivalent to any other country’s currency.

To get the visa, the investor needs to procure the property title from the registration authority of the respective emirate. This visa can only be renewed if the property owner can been out of UAE for at least a month.

Residential Dubai Property Prices Fall by 41% In the First Quarter

As said by a property consultant, Colliers International, the residential prices in Dubai has fallen by 41 percent, in the first quarter of 2009. This fall was backed by the decline in the mortgage and cash transactions. Due to the global financial crisis, banks discouraged lending. Therefore speculator have left the market. The level of correction stands at 34 percent.

The plunge in prices has wiped away two years of profits from property values. Colliers have also reported 8 percent fall in residential prices during the period October and December, which was the first quarter fall since the real estate boom began in Dubai. As per the data collected by Colliers, the areas responsible for the boom in Dubai real estate sector, is the one which was permitted to be bought by foreigners. Since 2002, the Dubai property market was open to the non-Emiratis.

Colliers Chief Operating Officer, John Davis said “We will see a further potential decrease in pricing, but it won’t see the same drastic fall that we have seen in the first quarter”.

A new industry study revealed, despite the correction in real estate prices, Dubai owns the most expensive residential properties in February amongst the 34 countries surveyed. In the list of hosting the most expensive properties Dubai is followed by Singapore, Moscow and Hong Kong.

Dubai Mall Flags Off Its Biggest Shopping Extravaganza, Today

The Dubai Mall hosts its biggest shopping festival today. Nine hundred retailers have participated in this giving away cash prizes from raffle draws which are conducted daily as well as weekly. Its not only raffle draws , but the shoppers can be swiped away with Bentley cars, several gift vouchers as well as ‘Bid to win’ auctions starting at Dh1. The shopping festival will have five lucky winners from the raffle draws. These lucky people would walk away with Dh10,000 each. To get these raffle coupons the customers would have to spend only Dh500 at any retail outlet within a month.

The excitement continues with the distinctive ‘Bid to win’ auction, where the visitors would take part to bid on a huge range on products which starts at Dh1. This shopping festival also offers a Grand Bentley Raffle. 5,000 tickets at Dh200 each would be drawn to give away the luxurious Bentley Continental Flying Spur.

On Saturday a weekly draw would be conducted for Dh10,000. Also, if at the time of the draw if the winner is present in the mall, he or she would win additional Dh50,000. Several entertainment activities would be hosted all around the mall. Its not only the Dubai property market but also the exclusive shopping festivals are a major attraction for people from all over the world.

Nasser Rafi, Chief Executive Officer, Emaar Malls Group, said “With 900 retail outlets already open, The Dubai Mall has the highest concentration of the world’s most leading retail brands in a single mall. The festival is therefore unsurpassed globally in terms of retailer participation within a mall environment. Retailers in the mall have extended their full support to the festival, which is organised with the Dubai Shopping Festival Office as the Strategic Partner.”

David Reily, CEO Middle East, RSH, said that all of the company’s stores in the mall will have “cross-store offers” during the Festival with gift vouchers to be presented to customers.

Dubai Govt To Meet All Contractual Obligations

All its obligations based on contracts including its contractors will be met by the Government of Dubai but also, it has no clue that how companies that had received an aid from state would utilize those funds. This statement evolved as a result of a misleading report that got published on April 24, 2009, in MEED magazine.

The head of the Department of Finance, Dubai, Nasser Al Shaikh, mentioned last week that the names of the firms that have received support from the first bond proceeds will not be revealed by Dubai government, although the input beneficiaries were Dubai real estate companies in which some ownership stake is owned by the Dubai government.

"The government of Dubai will continue to meet all its contractual obligations, including to construction contractors, as per the terms agreed with all third parties," the government said. "It wishes to clarify that those companies that have received funding via the recently set up Financial Support Fund received such funds on strictly commercial terms, and that the utilization of such funds remains at the sole discretion of individual companies."

Dubai Government will not limit the number of construction firms licensed to operate in the emirate. London-based MEED reported in its latest issue that contractors who are to be paid money would not be paid for work they have carried out on Dubai government-backed schemes, as the emirate will only clear debts with contractors it wishes to work with in future.

"The Government of Dubai will continue to meet all its contractual obligations, including to construction contractors, as per the terms agreed with all third parties," it said in a statement.

Excellent Residential Options Displayed By Emaar Misr At Property Exhibition

For the Development S.A.E, Emaar Misr, the completely possessed country subsidiary of Dubai real estate cmpany Emaar Properties, is displaying its varied collection of pleasingly planned and designed entirely finished homes at the exhibition- Next Move commencing from April 28 to May 1, 2009 at the Cairo International Conference Centre. 3 residential communities have been launched by Emaar Misr - Marassi, Mivida and Uptown Cairo- to potential customer and sturdy investor response can make well-versed procured finance decisions at the venue of the exhibition.

The CEO of Emaar Misr for Development, Sameh Muhtadi, mentioned that, "Emaar Misr is bringing to the country truly global competencies in master-planned community development. Next Move is one of the premier exhibitions for the real estate sector in Egypt and brings together various stakeholders including developers, consultants and customers. We are showcasing the rapid progress achieved in the construction of our projects at the exhibition."

Emaar Misr has a striking 596 sq m pavilion at Next Move, which demonstrates the representations of its projects and the growth in construction achieved. Emaar will also emphasize on the various features that add worth to the properties in Mivida, Marassi and Uptown Cairo. The incorporated communities propose the benefit of effortless access to the city centre while providing that ready-to-step-in apartments.

Launched in February 2009, lately, Mivida is the latest community for residential purposes by Emaar Misr and is located in New Cairo City, only at a distance of 1.5 km from the American University of Cairo. Senior Director, - Development, Emaar International Mr Mohamed A. El. Moshneb, added: "Emaar's projects reflect our philosophy to create fully-integrated lifestyle communities. All our projects in Egypt will feature healthcare centers, educational institutions, hotels, thus providing an engaging lifestyle experience. We have made on-schedule progress with our projects and are committed to deliver them."

Abu Dhabi Real Estate Grows With Cityscape

Cityscape Abu Dhabi has returned to Abu Dhabi National Exhibition Centre (ADNEC), held from 19-Apr-22-Apr. This event is expected to be 32 percent larger than the event in 2008, which would be spread across a gross area of more than 38,000 sq m.

Over the years Cityscape Abu Dhabi has shown significant growth. This event was launched in 2007. With the expansion of ADNEC, it aims at becoming the largest exhibition centre in the Gulf. Since, Cityscape Abu Dhabi 2008, six additional halls have been added to ADNEC. This has enabled the event to span the Atrium as well as the nine exhibition hall. Having the Cityscape Abu Dhabi returned to the emirate, amongst 50% of such exhibitions, signifies the strength of the organization like ADNEC and its contribution to the economy.

Simon Horgan, ADNEC CEO said: “One of the main reasons why ADNEC was created was to attract new events to the capital and to then support their growth. Since the venue opened in 2007 we have been committed to helping organisers make their events more successful each season. Cityscape Abu Dhabi is a perfect example of an event which has been able to grow due to the support which ADNEC gives.”

Rohan Marwaha, Managing Director, Cityscape, IIR Exhibitions added: “The support of ADNEC has been instrumental in the success of Cityscape Abu Dhabi. The 2009 edition of the event will be the largest Cityscape Abu Dhabi that we’ve held, and we’re expecting to see a significant increase in visitors and investors coming from all over the world to Abu Dhabi.”

Damac Properties, a Dubai Real Estate Developer Aims At Meeting Delivery Schedule

Damac Properties has proclaimed that the company is focusing on meeting their delivery schedule. They are aiming at delivering 25 towers by 2011. Hussain Sajwani, Chaiman of Damac Properties, believes in looking at the market more optimistically. Also, he believes negative attitude or destructive talk would not help the market recover.

Sajwani said “The brand Dubai has suffered in the last few months due to negative rumours, gossip and speculation, which prompts me to reject the cynicism by looking ahead into the future of the property market in Dubai and talk about the recovery process. We have to talk about taming the current situation with our positive attitude towards the change& we need to lead by example”.

He also added “I have heard all kinds of rumors about Damac. We have adapted our business to meet the challenges that exist at the moment and we have had to take a long, hard look at our efficiency rates and our longer term projections and targets. The corrective measures we have taken have been prompted by viewing the road ahead. We are a successful company and I do not feel that I should refrain from talking positively about the future.”

Damac Properties has, also, declared that they would assign Dh2 billion worth deal for construction work to continue, in 2009. The company is expected to meet its target of delivering 7100 units by the end of next year. This year Damac Properties has delivered 800 residential units at The Cresent in IMPZ and 536 units at Lake View, Jumeirah Lake Towers. Damac Properties has declared, Park Towers at DIFC and Ocean Heights at Dubai Marina are nearly 40% complete. These properties are expected to complete their construction by 2011 and have 25 towers delivered.

"No one is pretending that these times are easy. We have had to alter our plans and change the way we do business, but we have tried to meet these challenges in the best way we can,'' he said.

"We were criticised by some for making what seemed harsh choices, but in making these tough decisions we have gone a long way to protect the future of the company," he added.

"We will continue to concentrate on those developments where construction is already under way. We will also monitor the market for the right time to revisit those projects which we had announced but not yet started," Sajwani said.

Dubai Property Madison Residency Is Handed Over By Deyaar in May

One of the fastest growing real estate company Deyaar Development, has announced the handing over of Madison Residency by May 2009. This is the first Dubai real estate project to be delivered by Dayaar in 2009. The company is organizing a seminar for the owners on the handover process of the residential units. This orientation process would focus on the procedure required for the final documentation of handing owner respective properties to the owners. Also, the 2009 operating budget for the building would be discussed and the home owners would be explained the amenities and facilities of the property.

This property is situated along the Sheik Zayed Road, on Technology, E-Commerce and Media (TECOM) freezone. Madision Residency hosts 312 residential units. This outstanding property includes 161 opulent studios, 99 two bedroom apartments and 52 one bedroom apartments. The property is equipped with state-of-the-art amenities which include swimming club, health club, roof garden, strong security system, under-ground parking and generously spread retail services.

Markus Giebel, Chief Executive Officer of Deyaar, said: "An orientation program in the lead-up to the delivery of Madison Residency further underscores Deyaar's continued commitment to providing our customers with best international quality and service experience and is in line with our 2009 strategy to facilitate increased communication with customers. A program of this nature is an essential practice followed by leading global developers. It provides customers the opportunity to understand the exact documentation procedure for the final handover as well as the facilities management contract and amenities provided at the project. Such a program proved to be very successful on our Al Seef II project that was recently handed over."
Giebel added: "Positioned in one of Dubai's most prestigious and sought-after locations, Madison Residency stands out for its close proximity to the key business hubs of Dubai and the world-class lifestyle it provides."

RAK Ceramics Keeps Tab on New Concepts and Ideas At Cityscape Middle East Real Estate Awards

The world’s largest ceramic manufacturer, RAK Ceramics and Laticrete, the joint venture partner have declared they would be the sponsors for the Cityscape Middle East Real Estate Awards. The industry leaders would come together at the Abu Dhabi National Exhibition Centre (ADNEC), at these awards which would be held from 19 April to 22 April 2009. The awards would give recognition to the extraordinary developments and achievements made by the MENA’s real estate sector. These awards would be categorized on the basis of Architecture and Development. The entries to this award would be judged on the basis of contribution to invention and imagination, world architecture culture, the planet, respect for people, context and environmental awareness in the MENA region.

Dr. Khater Massaad, CEO, RAK Ceramics said: "RAK Ceramics' sponsorship of the Cityscape Middle East Real Estate Awards reaffirms our company's commitment to help promote and cultivate quality and creativity. With such a diverse participation, we are confident that the Awards will be able to discover fresh ideas and new concepts that will help the real estate sector become ever more exciting in the future. Furthermore, it is also a privilege for us to contribute to the success of a key segment of Cityscape Abu Dhabi, which is one of the premier industry events in the region."

RAK Ceramics is a $700 million company which supplies its products to over 135 countries. These products are targeted towards project developers, architects and retail customers. However, RAK Ceramics’ joint venture partner, Laticrete is the global manufacturer and marketer of installation systems for stone and ceramic tiles.

Abu Dhabi Real Estate Firm Adopts Environment Friendly Technologies

Abu Dhabi based investment company Al Rayan Investments has joint hands with Green Precast System and Technologies, an Australian firm. The companies would jointly implement its distinctive 3D monolithic modular system. This idea would be applied to all construction projects across UAE to ascertain its commitment towards building real estate projects which contribute to the betterment of the environment.

Chairman of Board Al Rayan Investments, Mr Fardan Hassan Al Fardan said “In our role as a premier organization in Abu Dhabi we are committed to supporting the aspirations of our government in delivering environmentally friendly and sustainable technologies to the UAE, upholding the drive for a green future. In Green Precast we believe we have found the ideal partner to complete this aim, their technology enables significant savings to be made with up to 80% less labour required to deliver projects up to 70% faster than conventional methods, Their developments are 30% stronger and save up to 90% on the ongoing maintenance costs. Green Precast system is a combination is solutions and products, that varies from the UV - IR reflector that helps to save up to 50% on the running cost, the water technology can in some cases save up to 100% on irrigation or toilet flushing through the grey water treatment of the household, and the Ecobulb technology can reduce energy bills and usage by 85%. The combination of all these technologies is the world's leading green precast system. As a result we fully expect Green Precast to become one of the pre-eminent choices for major developments in the region in the near future.”

Competing with the Dubai real estate sector, now Abu Dhabi is gaining popularity with mega projects coming up in this region. Al Rayan Investment has signed the contract with Green Precast Systems and Technologies worth Dh450 million. Al Rayan Investments is the first company to opt for this technology. This company aims to offer residential accommodation to 25,000 people by 2010. Green Precast is a active member of Emirates Green Building Council. This company aims at offering up to 2000 jobs in the UAE.

Saunders Global Interior Design Would Design the First Regional Mall in Abu Dhabi

The renowned Australian interior design firm, Saunders Global has been awarded with the contract by Baniyas Investment and Development Company to design and develop the interiors of the first mall in the region, Baniyas, Abu Dhabi. Saundars Global owns a commendable portfolio with some of the well known project such as Palm Jumeirah Pointe, Sahara Centre, The World Sales Centre and Nuance.

Abu Dhabi has a vision to emerge as a prospective tourist destination as well as offer world class residential facilities. With its ambitious plans, Abu Dhabi real estate has made huge investments in its sector. With mega projects coming up in Abu Dhabi worth Dh200 billion it is now competing with the Dubai real estate sector. With an opportunity offered by Baniyas, Dh3 billion Bawabat Al Sharq, accompanied with its opulent mall will contribute immensely in Abu Dhabi’s economy as well as Baniya’s growth. This regional mall would be spread over 148000 square meters and would have 339 shops. This would be new shopping hub which would be spread over two floors on a prime leisure and retail space.

Baniyas Investment and Development Company CEO, Wael Tawil “We have chosen Saunders Global expertise to produce a combination of dramatic contemporary and traditional design, with every section having a distinctive style and a unique atmosphere. We are building a vibrant city, offering the perfect place to rent spacious homely apartments or villas that belong to a fully serviced community. Adding to the luxurious lifestyle, the mall will serve as an attractive and entertaining venue for families to shop and spend leisure time”.

RAK Real Estate Project: Al Marjan Island Completes Reclamation Work

A significant real estate developer in RAK, Rakeen has confirmed they have completed their reclamation work on the $1 billion project: Al Marjan Island. This is the first man-made island which surrounds the emirates coastline by 21 km. The infrastructure work in the first phase, by Rakeen, has covered electricity, sewerage, drainage, water, roads, telecommunication, street lighting and channel crossing. 2.7 million sq m of the project, this first phase includes island 1 and island 2 out of the 4 island cluster.

The infrastructure and Project Director of Rakeen said “"We have maintained the highest standards in all aspects of the project, and have adopted modern technology and pro-environment techniques that will distinguish Al Marjan island as an environmentally friendly business and residential destination in the region. Moreover, our commitment to protect the interests of investors and stakeholders of the project is clearly manifested by Rakeen's timely completion of the project's reclamation work."

From the Public Works Department, Rakeen had taken over as a master developer in May 2007. Island 1 and forty percent of Island 2 were domesticated. However, by 2008, Island 2 and Island 4 were completed. Reclamation work was completed for Island 3 by January, after finishing the rock work and sand filling.

Rakeen has also extended its responsibility by taking over the reclamation and infrastructural changes for Bab Al Bahr. This development is an integral part of Al Marjan Island, which will serve as a gateway to the integrated island community. This is a mixed used development hosting residential and office tower, accompanied with a hotel and a mall tower. The first building constructed for the residents in this development would be completed to handover by mid 2010.

Other developments in Al Marjan Island such as Marbella Bay and Pacific are also on its way to face some infrastructural changes.