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.

Palm Jumeirah Sits Away From Speculative Slides

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

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

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

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

Dubai Villa Stock Welcomes the New Handovers

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

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

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

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

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

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

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

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

Palm Jumeirah Crosses 70% Construction

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

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

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

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

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

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

Burooj plans to develop middle-class projects

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

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

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

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

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

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

Free Legal Service Launched by Dubai Land Department

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

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

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

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

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

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.

Depa Bags Fit-Out Contract for Conrad Hotel Property in Dubai

Depa Limited is one of the world’s leading interior contracting companies. It has recently announced that the company has got a Dh 207 million contract to fit out all public areas, suites and guest rooms for Conrad Hotel property in Dubai. This hotel property is expected to get completed in the mid of 2011. As far as the fitting out of guest rooms is concerned, there are about 500 guest rooms. Apart from this, there are two ballrooms, executive lounges, business centre and 11 meeting rooms which are to be designed.

Previously, Depa has done various popular projects which include: Emirates Palace, Atlantis, The Palm and last but not the least the one and only Burj Al Arab. This Conrad Hotel project is yet another exciting one for the company as they are looking forward to closely work with the parties involved in it. The CEO, Mohannad Sweid of Depa Limited, said: “This contract win further strengthens our backlog position and Depa continues to be on target in terms of profit and revenue growth for 2009. This is driven by our consistent market leading position and due to the fact that we are invariably the preferred bidder for these types of major developments and projects due to unrivalled experience and track record of delivering prestigious works on time and within budget to the highest standards.”

This hotel is ideally located on the Sheikh Zayed Road which is just 20 minutes drive away from the Dubai International Airport.

World Class Group to Showcase Cyprus Real Estate Developments in Dubai and Lebanon

Investors from around the globe are finding great opportunities in investing in Cyprus. A new joint venture has come up by a Dubai based consultancy firm World Class Group. It has teamed up with a property portal centered in Cyprus, My Property Cyprus. They have created this advertising initiative in order to showcase country’s top real estate developments to various high net worth individuals throughout the Middle East. Cyprus Property Exhibition Center, CPEC is being created by Dubai firm as its marketing platform.

CPEC reduced the cost and provide seamless solution to the developers by developing a consortium concept by leading developers into what would have been a costly marketing experiment. It has been solved by creating advertisement partnerships. Property inspection trips to Cyprus will be promoted through this property exhibition center in order to view potential investment opportunities. This exhibition center will tour Dubai and Lebanon. It gets started from August 1, 2009 and an intensive tour of the region will be organized. These exhibitions will be held from mid August till September in one of the most exclusive hotels in Beirut for about one month. Potential investment opportunities are being viewed during 6 week campaign options for real estate developers to participate for full exhibition period or for 2 weeks as it is included in the available advertising options.

A new law has emerged allowing Non-Europeans to receive and purchase permanent residency visa for their family. Due to this, property investors in this region rediscover the opportunity presented by Cyprus as a golden gateway to Europe. According to the CEO of World Class Group, Michael J. Tolan, ‘Marketing strategies must evolve through similar cooperative initiatives like CPEC’.

Dubai Land Deals Reach Dh2.15b

Last week in Dubai the total worth of the land transactions reached an amount of Dh2.15 billion. In return the sales also got exceeded by Dh1.41 billion. According to the Land Department during this period the total value of mortgages was Dh736.89 million. Al Ruwayyah was the most valuable plot and it was sold for Dh207.2 million. As the week ended, The Department registered a total of 81 transactions. During this week Dubai real estate has shown vast improvement by delivering such prominent sales and registrations. Apart from the Al Ruwayyah, the next two prominent sales were shown for plots in Emirates Hills-3 and on the Sheikh Zayed Road.

These two sales were again tremendously huge as the plot on Sheikh Zayed road is acquired for Dh124 million and the one on the Emirates Hills is for Dh20 million. As far as week sales are concerned, the area of the Emirates Hills was the most active among all. Not only this, but Palm Jumeirah followed 14 sales. The period was under review during which it got disclosed that mortgages worth Dh524.86 million were registered, out of which mortgage for Marsa Dubai was the most significant with Dh214 million. Moreover, area in Al Jadaf was another for Dh94 million. Apart from all these sales and Dubai land transactions, by value Al Ruwayyah recorded the highest turnover followed by Sheikh Zayed Road for Dh124.01 million and last but not the least Emirates Hills-3 at Dh59.68 million.

In Al Ruwayyah the largest area which was sold was a 430,338 square foot plot. On Sheikh Zayed road a plot of 64,586 was acquired whereas, a 40,000 square feet area got disposed of in Jumeirah-3 for Dh15 million. This was the report and data acquired related to property transactions and registrations by Dubai Land Department.

ETA Star handovers Liberty House Real Estate Development

ETA Star is one of the leading real estate property developers in the UAE. This real estate company has now started handing over residential and office units to Liberty House owners. It is located in Dubai International Financial Centre district (DIFC). This property development company has already begun the handling of Dh700 million. Liberty House offers a complete range of freehold residential accommodation. The project is a 42 storey freehold tower; L shaped comprising of luxury studios, 1-2 bedroom duplexes and 1-2 bedroom apartments.

The Executive Director of the ETA Star, Abid Junaid said: “With great pride, we are pleased to say that we are amongst the first private property developers to deliver a project in the DIFC district. Keeping in mind to the current scenario, the delivery of the magnificent Liberty House holds strong significance in our hearts as this validates our trust and commitment towards our loyal patrons and customers. We will continue to strive towards completing our projects as per schedule.”

Liberty House is a full fledge unit comprising of office space, residential accommodation, car parking etc. This property in Dubai consists of office spaces on 10 floors. Above this there are 20 floors providing luxurious residential accommodation. Moreover, car parking is not at all an issue as 6 levels of car parking are available. This office property in Dubai in Liberty House is centrally located around an atrium space thereby, providing a lively and a comfortable environment for the employees. Moreover, the apartments are being developed with contemporary designs and a great level of sophistication is also involved. Apartments are designed keeping in mind the modern lifestyle with terrace areas. Thus, it has become a perfect residential and a commercial property.

Rakeen’s Bab Al Bahr- Residential Development Reaches Its Two Storey Construction

Bab Al Bahr is the iconic development in Al Marjan Island. This island is the first man-made island in the emirate of Ras Al Khaimah. One of the master real estate developers of the region, Rakeen has announced, the residential development in Bab Al Bahr has reached 2 storey construction. This entire development is valued at Dh 1 billion. Rakeen has assured a smooth flow of construction on the site and would be able to deliver its first residential unit by mid-2010.

Herbert Krause, Director of Development, Rakeen said: "On-site progress of the Bab Al Bahr project is ongoing as scheduled. Rakeen is working closely with all the consultants and the construction teams to ensure timely completion and handover as all of us are aware of the importance of this signature project of Al Marjan Island." "Moreover, in these times of global economic challenges, the proper handling of this project will send out the right message to investors and the public and boost their confidence in the strength and resiliency of the Emirate and the strategic leadership of H.H. Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah. We also warmly welcome investors and the public to contact our offices for further information or visit the site and personally witness the construction progress," added Krause.

Bab Al Bahr offers a huge range of residential unit which includes 136 studio apartments, 104 three bedroom apartments, 236 two bedroom apartments and 356 one bedroom apartments. These apartments offer panoramic sea view and overlook some private beaches. In addition this property in Ras Al Khaimah hosts several facilities like underground parking, children’s play area, state-of-the-art gymnasium and several more. Bab Al Bahr forms an integral part of this island. It servers as a gateway to this integrated community.

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.