Leasing of Single Business Tower in Dubai Announced by DIP

One of the leading developers in the UAE, DIP- The Dubai Investment Properties, has announced the beginning of the leasing process of their latest commercial development called Single Business Tower.

The company is to lease 248 office units and 7 retail units at their new tower on Sheikh Zayed Road.

According to Anj Viadi, the Property Manager of Single Business Tower, the tower has been completed much ahead of the scheduled date. The tower has been given its central location, elegant façade and the modernized interior serving as an ideal business location for various companies seeking brand recognition.

He added, “The building incorporates energy efficient and self-sustaining features, with 248 modern offices and retail spaces spread across its 45 storeys. The green building guidelines have been followed to ensure energy efficiency, the big French windows help in capitalizing natural lights, while glass panels help divert heat and minimizes A/C consumption. The Single Business Tower also has advanced security and fire protection systems that ensure security of tenants at all times.”

Apart from all this, the offices within the business tower are designed in a way that they ensure maximum space efficiency and functionality. There are a several amenities and service outlets have been added to compliment a functional business environment.

This will make the Single Business Tower an attractive option for the business seeking to establish their main branch offices offering round the clock management services, ample parking space propinquity to the Business Bay metro station and the awesome views of Arabian Sea and Burj Dubai.

Along with the first class office retail spaces, the tower also offers reception and concierge services to tenants, a conference room which is fully furnished, business lounge, separate gymnasium for men and women both, a multi-level car park for tenants, business services and other management facilities.

Dubai Office Rent: Still Among the Top Ten Places

Dubai has been observed as the eighth most expensive place on the globe to rent office in Dubai despite the crash in the property rates in Dubai. This was revealed by the latest report given by CB Richard Ellis.

Since the fall is universal, Dubai stands still among the top 10 priciest places to have an office despite of the drop of 27.3 % in office rents.

The office space presently costs $108.91 per square foot. However, Dubai is still far behind the West End of London which fetches rents worth $184.85. Dubai is fine ahead though, of its immediate neighbour Abu Dhabi where rents have gone down by 38.6 % touching $84.4 per year. It also stands ahead of London City market at the ninth place globally.

The best performing market was Aberdeen in Scotland, which suffered a 12-month decline of 12.3percent, touching $65.62.

The report confirmed that the “financial crisis has made an impact on the world's office markets and the US dollar, has been particularly weak in 2009. Europe, Middle East and Africa continue to have the largest number of markets and are on the top 50 list while London's West End is still the world's most expensive market. Other markets in the region ranking high on the list are Paris, Moscow, Dubai and London City.”

Meanwhile, the real estate broker Knight Frank LLP said that 40 percent of Dubai's office space is currently empty after the emirate's construction pace surpassed demand, Bloomberg had reported.

“Vacant office space in Dubai totals to 10mn square feet at present. However, if developers meet the current completion dates, total office space will double to touch six million square meters by end of 2011,” reported the research by broker Colliers International, which also placed vacancy rate at 40 percent.

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.

DAMAC Properties Completes Structures Of Two Prime Towers

Damac properties are a luxury style provider to the residents of the UAE. It has recently announced that two of its projects have officially reached the top level at Business Bay. These two properties are: The XL Tower and Business Tower. Each building has reached the level of 18 and 19 floors respectively. Moreover, another building that is the twin tower development at nearby DIFC, the Park Towers is also expected to reach the top floor within next few weeks. This year, the total structural buildings announced by Damac Properties reaches four so far along with Lago Vista at IMPZ and Smart Heights at Tecom.

The Chairman of CSHK Dubai Contracting Fu He and the CEO of Damac Properties, Peter Riddoch performed a special ceremony in order to mark this major event. The construction of these two towers forms a part of the portfolio of the eight projects that are currently under way in Business Bay area. Riddoch said: “We are delighted to mark the structural completion of these first two towers in the Damac family of properties planned for Business Bay. It is has been a great pleasure to work with the teams from CSHK, who have totally lived up to their reputation of being focused and committed to deadlines.”

Business Tower which is on the verge of completion is one of the DAMAC’s signature commercial buildings featuring innovative office designs which is all based on the leading edge. Moreover, the form of the tower is in response to the path of the sun as during the day it moves around the building thus, featuring maximum daylight into the offices. Mr. Riddoch further added: “These two office towers with light and airy spaces for people to work in and stunning views of the waterfront are truly typical of the type of buildings that are synonymous with the DAMAC brand – exclusive designs in prime locations. I look forward to further commemorating with CSHK the completion of XL Tower and Business Tower in the near future.”

Office Rents In Dubai Are Recorded Second Highest In EMEA Region

A new report was found that the office rents in Dubai are found to be the second highest in the EMEA region behind London’s West End. It was found that the average office rent in Dubai property sector is EUR995 per square meter per annum. However, the rents are expected to fall as the supply in the real estate market in Dubai gets increased. The report showed that the office space in Dubai is just after West End which is EUR1019. The associate director of research for CBRE Middle East, Matthew Green said: “Despite the much publicized downturn in the Dubai market, prime office rental rates remain comparatively high and second only to London's West End.”

Furthermore, the report said that the average prime Dubai office rates fell by 18.2 percent. However, the fall has been lower than in European cities. CBRE said rents have already dropped across the board. It was particularly talked about the office buildings in Jumeirah Lake Towers and Tecom.

The report further added that occupiers in Abu Dhabi were taking their commitments to new Grade A because of the uncertain economic situation. The report also listed the next three strongest office markets in the region which include: Paris, St Petersburg and Moscow. The director of EMEA research, Richard Holberton said: “Landlords are finding it increasingly difficult to lease vacant space, given the understandable caution being expressed by most occupiers at present. With those occupiers requiring space driving a hard bargain, and increasing choice available in the market, it is inevitable that we will see further weakening in rents and an increase in leasing incentives in most markets over the coming months.”

Infrastructure Work going on at Business Bay Development in Dubai

Key infrastructure work is going on at Business Bay development. It was announced by Dubai Properties, a subsidiary of Dubai Properties Group. The key infrastructure work includes district cooling, water network, sewage and power connectivity. The total amount that is being spent on this work is Dh10 billion. The master developer is also pulling up the socks for the delivery of Executive Towers which is also a part of Dubai property sector. Business Bay is a master real estate development; however its work is steadily progressing.

Business Bay is a master development for Dubai Properties and is an 80 million sq ft development. It is ideally located on Dubai Creek’s extension. In February 2009 this real estate project was energized by a power substation of 132/11 Kv. This was to feed the first and the second phase of the development on the west side of this real estate development.

The Group CEO of Dubai Properties Group, Mohamed Binbrek said: “Business Bay is our most acclaimed and ambitious project up to date. The unprecedented logistics and scale of construction that encompasses the development is closely supervised by Dubai Properties and relevant business partners and stakeholders, and we are determined to deliver all foundational function in a timely manner. In line with our promise to our stakeholders, our status is backed by projects such as Executive Towers and the Creek extension at Business Bay, amongst other spectacular developments around Dubai. Client needs stand as our topmost priority and we will continue to bring on stream projects that serve as a benchmark for generations to come.”

A broad and widely spread road network has also been laid out throughout these two phases of this spectacular project in order to serve both the commercial as well as residential premises.

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.

Dubai’s Airport Development Investment has Increased

Dubai has confirmed an amount of Dh63b to be increased in Dubai airport development project. So far an amount of $7.2 billion have already been invested in this Dubai real estate project. Despite of these challenging times, the infrastructure in Dubai is still going on for that matter. President of the Dubai Civil Aviation Authority and Chairman of Dubai Airports, Shaikh Ahmad Bin Saeed Al Maktoum said: “These are challenging times for aviation. Passenger and cargo traffic has dropped off dramatically in most parts of the world leading to billions in industry losses. Dubai has been a beacon of light during these turbulent times. During the first quarter Dubai Airports recorded 2.1 per cent passenger traffic growth.”

In order to expand Dubai International Airport, an amount of $7.2 billion have already been invested in it. The expansion of Dubai International Airport includes a second concourse which got opened in the year 2008 and Terminal 3. This all has been done to increase the airport’s capacity to around 60 million passengers per annum. Shaikh Ahmad further added: “Dubai has been a beacon of light during these turbulent times. During the first quarter Dubai Airports recorded 2.1 per cent passenger traffic growth. That increased to 6.5 per cent in April and 7.1 per cent in May. In total, Dubai International forecasts a four to five per cent increase in passenger traffic for the first half of this year.”

The expansion also encompasses construction of Concourse 3 which is yet to be completed. It is expected to get completed in late 2011. In return the total airport capacity will get a boost to 75 million passengers every year. The government of Dubai is heading forward with its long term vision for the betterment of travelers and of course for the betterment of Dubai airport as well.

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.