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.

The Work on the Private Projects at The World will Begin Soon

Soon the construction will start on the various off-shore island developments in The World and it has been confirmed by the well known property developer Nakheel. Last month it was announced by the Kliendienst Group that they will begin the construction on the Germany Island which is the Heart of Europe development and is a part of the Dh.3.1bn. The confirmation regarding the beginning of the work after a European developer, Major Trade, announced the starting of work on its island project.

Marwan Al Qamzi, The managing Director of Nakheel said, “The World is an attractive project, given its differentiated offering and close proximity and accessibility to developing markets.” The Canadian Gulf Construction and the Arabian Profile Company Limited which is the Arabian architectural and cladding specialist have carried out their construction work on the development.

Viktor Herceg, the Managing Director of Major Trade shared a feeling of confidence by saying that after the project gets completed a huge demand for luxury residences will come up. He further added that Nakheel has been very supportive for its first island development. The island is located on the tip of the Greenland area of The World. It includes a luxury boutique hotel and modern residential villa developments. For a mid-sized European residential property developer, Major Trade is a property development investment arm and is particularly responsible for the construction of various high end Dubai real estate developments.

Nakheel confirmed that this year work will begin on as many 20 islands. Taking the economy into consideration the buyers have revised few of their initial designs and these are now moving ahead with their construction works.

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

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

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

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

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

Changes Witnessed in Property Scenario of Dubai

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

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

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

For more property rates in Dubai, contact us.

Tameer’s The Imperial Residence Venture on Schedule

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

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

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

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

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

Dubai Forum After Opening of Burj Khalifa Delineates Sustainability Trends

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

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

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

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

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

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.

Burj Dubai: World’s Tallest Tower’s Height is Still a Secret

Burj Dubai, the pride of Dubai’s growing role in this changing world is due to open on 4^th Jan’10. This masterpiece is the flagship development in Downtown Burj Dubai property within Dubai. The exact height of this stunning piece of architecture is known only to few. The tower’s structural engineer, William Baker of Skidmore, Owings and Merrill LLP, said in an interview: “Its still a secret. The client (Emaar Properties) will only let us say it's more than 800 metres (2,625 feet) tall. It's part of the mystique of the project.”

According to Baker, if the tower’s height is measured by measuring its shadow then it would leave the current record holder building, Taipei 101, to the second position. Amongst 10 tallest towers, 7 are in Asia and have been built in the last 13 years.

However, Jan Klerks belonging to Council of Tall Buildings have expressed their interest in knowing the exact height of the tower. One of Klerks’ email said : “We have expressed this a number of times, but if there are reasons not to disclose it, then I guess we have to do without an official number. We also do not know why they chose not to disclose the number. The only thing we are sure of is that it is the tallest building in the world, and that it is at least 800 metres.”

As Baker has mentioned, the recent global financial slum has not hit the sales of the 1100, one to three bedroom residential apartments. The tower has some of the fastest elevators running up to the speed of 25 miles per hour. The steel and exterior glass of the building could be spread across 17 soccer fields, which would take 6 – 8 weeks to clean. In published reports, the tower’s cost has been at approximately $1.5 billion.

Frame Structure of Ocean Heights Completed

DAMAC Properties, the provider of luxury lifestyle and the pillar behind several other projects, announced the completion of the concrete frame of the tallest tower in Dubai Marina along with its development at Ocean Heights standing high at 84 floors.

Ocean Heights is the flagship of DAMAC and is expected to become one of the most iconic buildings of the area. With its twisted architecture, it already is being visible above all others in the surrounding area.

The Chairman of the main contractors Arabtec, Mr. Sajwani said, “This is a significant day for DAMAC Properties - the structural completion of our flagship building is a source of great pride and an occasion that we are glad we have been able to mark with the support of RERA, Arabtec and so many of the staff who have worked on site for the past three years. To think that this magnificent building has been constructed in a little less than two and a half years is a testament to their efforts and I pay tribute to their hard work and accomplishments. This has been a turbulent 12 months for everyone involved in real estate and it is therefore all the more impressive that everyone involved has remained so focused and dedicated to the task at hand. We are delighted to be literally ending this year on a high by finishing our tallest building.”

He added, “As a contractor we are always proud to be associated with quality projects and it is pleasing to be here to commemorate this milestone event for DAMAC Properties as we finish the main construction of Ocean Heights,' he said."A large part of our philosophy at Arabtec is to work hard with developers to build a relationship and to work together as one team on challenging projects like this. In the light of some of the recent negative news and speculation, I believe it is even more important that we recognize the efforts and achievements of everyone involved in the construction of Ocean Heights and celebrate how significant they are. Once completed in 2010 Ocean Heights will eventually offer 680 apartments ranging from one to three bedrooms. In addition the building will feature DAMAC Properties' Signature Series penthouse range - ultimate luxury apartments with the latest in hi-tech gadgetry and luxurious home comforts.”

Highest Sales Transactions Reached in Meadows, Jumeirah Islands

According to sources, “Among villas of real estate in Dubai, Meadows, Jumeirah Islands, Arabian Ranches recorded the highest transactions, while from an apartment perspective, Dubai Marina, JBR, Downtown Burj Dubai and JLT have recorded the highest transaction."

The Head of Sales of Asteco Property Management, Mr, Vineet Kumar said, “The top three residential areas, which have witnessed the most transactional activity in the month of November for apartments sales, have been The Palm Jumeirah, Dubai Marina and Downtown Burj Dubai areas. "The locations which witnessed the most transactional activity in the month of November for villa sales are The Emirates Living Area, Arabian Ranches and The Green Community."

The Director-Residential Sales and Leasing, Liz O'Connor, said: "From a sales perspective, among the villas, Springs/Meadows, Jumeirah Village, Jumeirah Islands stood apart and in the apartment’s category, it were Downtown Burj Dubai, Jumeirah Beach Residence and Dubai Marina.

Kumar also said that the profile of the buyer has been observed to be the end user primarily. However, there were some buyers who have bought property in Dubai for rental purposes focusing on holding the property assets for 5-7 years. He said, “The buyers on these projects were mixture of individuals from the GCC countries, Russia, India, Pakistan and Western Europe”

He said, “the sales activity on these projects have tended to revolve around the owners and sellers of properties who have purchased them in the years prior 2008.Typically these properties can be sold in today's market with some expectation of premium.”

Alwadiya said that mixed nationalities of end-users and investors have invested into these areas. "In general, buyers are more demanding and careful nowadays compared to last year and the previous years and hence they do enough due diligence before purchasing any properties. We have not seen major prices changes since the last three month - prices have stabilized in certain areas and you can always find very well priced properties in all areas of Dubai," she said.

Long-Term Dubai Investors Still Gain From Property Investments in Dubai

According to the owner of a Dubai based brokerage firm, the investors who had purchased real estate in Dubai even less than two years ago, still stand to earn profit despite the current low prices.

“People who are suffering the most are those who purchased properties last year on mortgage, as the prices of properties then were very high and mortgage rates were also high. But, people who purchased before 2007 also have not lost. Even if they sell, they still get to make a profit,” said the CEO of Leo Sterling, Laura Martorano.

The recent Dubai World restructuring discussions have not really affected the property prices in Dubai, agreed Martorano and also added that due to the competition, the prices in the ready market are not prone to change.

She also added, “In a ready market, about 60 percent of purchases are cash purchases. Therefore, people may not necessarily be so desperate as opposed to 40 percent, who have bank loans and mortgages”

The transactions in the real estate in Dubai have gone down in November as per the official data. The toll of property sales had fallen by 11% from 208 in October to 186 in November and the value of the deals had fallen by 47% from that of Dhs1.84bn to Dhs.970mn in the same period.

The data by Dubai Land Department depicted that the sales of the villas have gone high by 24% from 88 to 109. However, there was a decline of 41% in value which went down from Dhs.290mn to Dhs.170mn in November.

The positive indicators were shown in the month of October with average monthly market index posting 11.25% rise whereas the trade increased by 10% in volume and 9% in value as per Dubai certificates of origin.

Despite the negative economic indicators, Martorano is confident that Dubai will continue to hold a bright future.

Dubai Pearl Expected to Conclude by 2013

Abdul Majeed Esmail Al Fahim, Chairman of Pearl Dubai, announced the completion of Dubai Pearl, which is to be the mixed-use luxury development by Pearl Dubai FZ LLC, by 2013. The project will prove to be another magnum opus in Dubai real estate.

Dubai Pearl was supposed to be completed in 2007 originally but had been delayed due to lack of funds. The project will be handed over in almost three phases. First handover will take place in 2011 with the whole development expected to be completed in 2013.

According to the Chairman, the project has adapted to the financial environment in order to reach the completion. With the purpose of adapting to the economic state of affairs, major areas are being prioritized for completion. The focus is observed through the steady development and delivery of the project, payment plans offered to the investors which are flexible enough and tailor-made, to have transparent relations with the partners and campaign to enhance awareness on all the components of the project is planned efficiently.

This $4 billion project is located at the Dubai Technology and Media Free Zone. It is a business huddle operated by Tecom Investments and is considered to be the home to global IT and other media companies. The aim of the development is to become a luxury free zone as well as a freehold development with an easy access to transport links.

The associated structures of this development by Pearl Dubai are its four distinctive towers which are linked together from the top. The skyscraper includes residences, hotels, entertainment facilities and other global names like Baccarat, MGM, Sky lofts and many more.

The partnerships of Pearl with these brands aim at the long-term returns for the stakeholders of the development.

There are approximately 1440 residential units and 618 apartments which make 40% of the project. The hospitality sector comprises of about 16% and commercial sector that of 33%. Rest of the space is occupied by retail and leisure.

Over 900 residents are expected to be accommodated by Dubai Pearl and about 12000 employees are expected to be employed by the commercial sector. Dubai Pearl is also aiming at receiving Golf LEED Certification.

Selling of Dubai Assets to Help Dubai World Turned Down

A top Dubai Government official confirmed that Dubai is not going to sell any of its assets to bail out Dubai World. He also added that the group will be able to overcome the situation by restructuring its debts and selling its own assets.

Abdul Rahman Al Saleh, the Director-General of Dubai Department of Finance said that part of financing Dubai World will be through the means of the sales of the asset as these are the company assets and not the government assets.

He said adding to it , “The motive behind restructuring of Dubai World is to ensure continuation of its operation as a viable commercial entity. The future of the company is most important than liquidity. It is in the company's interest to inject liquidity or restructure it, to ensure that it remains sustainable in the long-term.”
Al Saleh said that the Dubai World as well as the problem that of Nakheel, the developer of Palm Jumeirah and other real estate in Dubai, has originated from short-term lending on long-term projects, which doesn't generally work in a volatile market situation. Majority of Dubai World and Nakheel projects are long-term projects with strategic importance. These cannot be developed through short-term lending.
Al Saleh also said, “Dubai Financial Support Fund, established in July this year, can offer support to Dubai World, if needed.” He reiterated the government's stand on the state guarantee for Dubai World's debts.
Al-Saleh also pointed out that the legal documents signed at the time of company establishment do not carry any clause on the government's guarantee. The clauses clearly specify that the government will not guarantee the liabilities of the company.

Dubai Villa Prices Gush by 20% on Return of Growing Demand

A gush of 20% in the price was experienced by the villas in Victory Heights Dubai Sports City in the Q3 of this year. The prices had fallen by 50% in the Q1 of the year due to the global economic recession.

It was observed that the main reason of the push in the prices was the growing demand for family homes in Dubai. The trend is expected to persist if recent prophecies of a villa shortage in 2010 works.

Yasser Abdulrahman Al Raee, the General Manager at Victory Heights said, “The fall in the price of villas seems to have bottomed out, and we are starting to see prices rise again. Since July prices for villas in Victory Heights have risen by about 20 percent, and we expect to see prices stay around the same figure to the end of the year."

He added,"Despite the recession families still are looking to find spacious homes, with quality finishing, in developments that have a community spirit - and that's what we offer at Victory Heights. Families are moving here from other developments in Dubai because they get like being away from the bustle of the city, and just a stone's throw from the all the sporting facilities of Dubai Sports City."
The potential shortage of villas on offer in Dubai in the next few years was highlighted by Landmark Properties CEO, Charles Neil, in an interview with Emirates Business on 29 November.

According to Charles Neil, CEO of Landmark Properties, “the number of units coming online in 2010 will jump to 50,000 - of which 20 percent will be villas, and the rest apartments. In 2011 the number of new villas will drop to five percent, and to three percent in 2012.”

Authentic Spanish Andalusian, Mediterranean and classic European style are the three styles in which villas at Victory Heights are designed. Many of these enjoy the views of the Els’ Club course. The developer promises to foster a strong community spirit by holding regular community events like BBQs.

Rent Decline Extends in Dubai

The rental scenario is taking an extended break in Dubai with the unchanged commercial and residential rents.

According to a survey, people are postponing the move until the holidays and consequently the moving to other flats has slowed down. The enquiries related to tenancy are mainly focusing on the areas which are less congested and where the best possible prices can be obtained.

The landlords have continued to be flexible as well as negotiations of rental rates and payment terms due to the uninspiring property market. The average annual rental rates have become constant since September.

The survey found , “In November, a studio at the  Dubai Marina Marina Promenade, Emaar Six Towers, Downturn Burj Dubai, Palm Jumeirah, Sheikh Zayed Road and World Trade Center areas, ranged from Dh50,000 to Dh60,000. Rents for one-bedroom units were static at Dh85,000 to Dh120,000. A two-bedroom flat was priced at Dh120,000 to Dh160,000, while a three-bedroom unit was at Dh160,000 to Dh210,000.”

“In the mid-tier neighbourhoods of Bur Dubai, Al Barsha, the Greens, Jumeirah Beach Residence and Dubai Marina, a studio in November ranged from  Dh35,000 to Dh50,000, a one-bedroom flat ranged from Dh55,000 to Dh75,000, a two-bedroom flat at Dh70,000 to Dh100,000, and three-bedroom units from Dh90,000 to Dh120,000.”

“Average annual rents continued to be cheaper in International City, Discovery Gardens , Deira, Jumeirah Lakes Towers and some parts of Dubai Marina. A studio in these areas was priced at Dh26,000 to Dh40,000, and a one-bedroom unit at Dh38,000 to Dh65,000. A two-bedroom flat ranged from Dh60,000 to Dh85,000, while a three-bedroom unit went for Dh90,000 to Dh110,000.”

“However, at  Jumeirah Lake Towers, new supply brought down rents, with the lower end of the range cheaper by Dh5 at Dh55 per square foot. The higher end of the range in Bur Dubai, Tecom, Downtown Jebel Ali and Festival City, remained at Dh170 per square foot per annum. In Deira, Dubai Silicon Oasis and Dubai Sports City, office rents still ranged from Dh50 to Dh100 per square foot per annum in November.”

Prices of Dubai Marina Apartments Fly High

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

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

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

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

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.

Recovery of Off-plan Ventures Unlikely for Two Years.

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

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

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

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

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

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

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

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

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

Finally Blossom the Prices in Springs and Meadows

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

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

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

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

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

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

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.

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.

Revision of Rent Laws by Emir

The Rent Law in Middle East has been revised leading to the rise in complexity of eviction of the tenant from a rented property.

According to the new Rent Law No.(20) of 2009,issued by The Emir H H Sheikh Hamad bin Khalifa ,the revision does not give right of raising the rentals to the landlord. In addition to this, a landlord cannot ask his tenant to vacate the property unless the property is needed for his/her personal use or the use of any of his legal dependants. Moreover, the landlord in this case, should also give the notice to his tenant at least six months prior to the requirement.

The revisions were implemented after reviewing the draft law proposed by the Cabinet, considering the views of the Advisory Council and assessing the Constitution and related laws.

Tenant’s Perspective
•    The new law averts any increase or alteration made in tenancy contract for first two years.
•     Landlord must provide the property in sound quality.
•    Article 16 of this law puts the responsibility of property maintenance on landlord. But very next article states that landlord shall not make any change which will affect the tenant benefit in any way.
•    Tenants should be sure that only the contracts which are in written form and registered with RERA will be valid.

Landlord's Perspective:

•    Landlords will be constrained to decide rent at the time of contract for two years. Keeping this in mind they can decide a reasonable rent, as per the future economic changes
•    The landlords are free to receive rent value on agreed dates.
•    Any changes to property cannot be made by the tenants without landlord's consent
•    Tenants need to pay the entire taxes due to the Government.

Any complaint from a tenant will not be received by the Rent Dispute Settlement Committee (RDSC) set up by Law No. 4 of 2008, unless the tenant confirms a rent contract registered at RDSC office. However, tenants who seek a proof of landlord-tenant relationship for leases which were signed before February 15, 2008 can approach RDSC without contract.

According to Asteco Dubai property with completed facilities are preferred choices

Asteco is the largest property services company in the UAE, which says that the sales price of the apartments which are in completed projects in Downtown Burj Dubai area have seen the highest increase. This company carries out a comprehensive market analysis and has reported that the transactions and enquiries have picked up in line with mortgage availability. The sales apartment prices have gone up from Dh1, 200 per sq ft in the Q2 to Dh1, 300 per sq ft in Q3. Other than this, the sales price in other parts of Dubai has shown a slight increase. Moreover, the rental charges have also changed minimally.

According to the reports and study, the demands for smaller units including 1, 2 bedroom apartments, studios and villas are increasing. Currently there is average rental rate for studio apartments which varies as per apartment types. For studio apartment, the price is Dh45, 000 whereas, for 1, 2 and 3 bedroom apartments the rental prices are: Dh76, 000, Dh103, 000 and Dh139, 000 respectively. The CEO of Asteco, Elaine Jones said: “Both Downtown Burj Dubai and Jumeirah Beach Residence are highly desirable, fully established communities, which are exactly what the market is seeking. A completed tower is no longer enough if it is not part of an integrated community with convenient access to schools, hospitals, transport, leisure and entertainment facilities. In terms of villa communities, The Springs and Arabian Ranches are faring well for the same reasons.”

Rates for 1 bedroom apartments are studios are beginning to stabilize whereas the report says, that there is still a scope for further drops for larger units. As per the company’s study the majority of inquiries are coming from Umm Suqeim and Jumeirah where tenants are searching for 3 bedroom units in a specific price range.

French Deputy PM promotes major real estate project at Cityscape Dubai 2009

A Gallic flair was added to the last day of the grand real estate event Cityscape Dubai as the Deputy PM of France, Patrick Devedjian delivered a half an hour presentation on Paris La Defense. This amazing real estate development aims to become the new commercial capital of Europe. Cityscape Dubai is a grand event in context with Dubai real estate and people associated with real estate sectors from all over the world. The real estate project talked about y the Deputy PM of France is a centrally located project which comprises a mixture of new builds and renovations. An office space of 3.2 million sq m is to be developed within 15 towers between 35 to 301 m high.

The encompassing developments around the project are €33 billion which targets insurance companies, energy, banking, schools, universities and research centers. Other than this it also houses up to 20,000 residents upon completion. The Deputy PM, France, Patrick Devedjian said: “The crisis has given us the opportunity to create a new financial city which will serve as the new commercial capital of Europe - this is our ambition. For the first time in France, towers will integrate a mix of functions.”

He was confident enough as the prevailing financial circumstances would not affect the project as €23 million of funding has already been secured for the project within 10 months. The project was launched in 2006 and leading architects such as Jean Nouvel, Tom Mayne and Norman Foster are currently involved in this real estate project. These towers are being designed BREEAM, HQE and LEED standards. The Tour Phare, 301 m Tour Signal and 300 m high Tour Generali are among the most striking towers being developed.

Empower Commissions Business Bay Executive Towers District Cooling Plant

Emirates Central Cooling Systems Corporation (Empower) announced recently that for Business Bay Executive Towers it has commissioned the 45,000 refrigeration tone district cooling plant. This world class plant has started supplying chilled water to the area since June 2009. Empower has done a joint venture with Dubai Electricity and Water Authority and Dubai Technology and Media Free Zone. The CEO of Empower, Ahmed Bin Shafar said: “Business Bay Executive Towers is expected to be one of the busiest and dynamic business spots of Dubai. International quality standards were adopted in commissioning this significant plant. The plant will supply not only the 11 towers of this development, but also other developments at the Business Bay at phase one and two project serving through a 6-7 km long network.”

This executive tower comprises of 11 towers, out of which 9 are residential towers, Business Bay hotel and a commercial development. Bin Shafar further added: “District cooling systems (DCS) achieves economies of scale by using centralized plants instead of individual cooling units in each building. The centralized system results in reduced capital and operating costs, thus reducing air-conditioning set-up and energy costs per building.” The Executive Towers is the first phase of the development that has been launched in this billion dollar Dubai real estate development.

The commission of this world class plant has been finished and it will serve the entire project through the off site district cooling systems in order to save around 35 percent energy consumption. Bin Shafar said: “Commissioning is vital to ensure a seamless implementation of the project until the completion phase. It is a matter of pride that this project will be completed in time and within budget and this where commissioning fits in.”

DED Honours Dubai Team on Doing Business 2010 Report

DED is Department of Economic Development has honored the Dubai team that has been involved in fulfilling the requirements of ‘Doing Business 2010’ report of the World Bank and International Finance Corporation. The Director General of DED, His Excellency Mr Sami Al Qamzi honored the team. The country’s position has been elevated to No 33 by 14 ranks up. The concerned efforts of governmental organizations in the UAE have contributed in this high ranking. The focused efforts have paid rich dividends in getting an internationally known position. The ceremony was attended by the Secretary of the Emirates Competitiveness Council (E.C.C.), General Abdullah Nasser Lootah.

The government aimed at implementing business friendly initiatives thus, driving foreign investment and entrepreneurship. Mr Sami Al Qamzi said: “The ranking highlights the positive trends in the UAE's economic environment that contribute to the country becoming the destination of choice for local and international investors.” Among various key achievements the quantum jump that UAE achieved in the category ‘Dealing with Construction Permits’. The rankings have been improved from 54 to 27. Moreover, the rankings have also been moved up in ‘Registering Property’ from 11 to 7 and ‘Trading Across Borders’ from 13 to 5.

Mr Qamzi further added: “These positive shifts in the ranking not only highlight the focus of the government in improving trade and the prospects of the property sector but also demonstrate how the businesses have responded to the governmental initiatives.” The resolution 4/2009 has been approved by the Executive Council of Dubai in order to develop business activities. Headed by DED with Dubai Land Department, Department of Legal Affair, Dubai Customs. The team also cooperated with various other government departments including Dubai Electricity and Water Authority (DEWA), Dubai Ports Authority and Dubai Courts highlighting UAE achievements with regard to the business environment.

Tasweek Plans to Create Real Estate Investment Portfolio

Tasweek Real Estate Marketing and Development has announced that it is planning to create a real estate investment portfolio worth $250 million. This investment portfolio feature key Abu Dhabi and Dubai projects in next 18 months. Tasweek is an Abu Dhabi based property solutions provider and advisor serving Middle East property markets. The locations chosen by Tasweek include Jumeirah Beach Residence, Dubai Marina, Al Raha Beach, Dubai International Financial Centre in Dubai and Reem Island and building material city in Abu Dhabi.

The CEO, Tasweek Real Estate Marketing and Development, Masood Al Awar said: “We plan to acquire properties in free zones and investment zones in Dubai and Abu Dhabi over the next few months. We have already begun acquiring properties using our own funds. We are ready to a steady start and are confident that we can raise the total amount we need mainly through the support of our shareholders and potential investors. We have already identified some strategic locations and we are aiming for an asset structure comprising a mix of commercial, residential and retail investments".

The targeted acquisitions are expected to generate returns on investment. The company focuses on its core competencies of professionalism and is deciding to buy complete floors, single units or other projects at the opportune time. It has recently signed the marketing and management consultancy Memoranda of Understanding (MoU) with RQ Associates Ltd. and IK Consult Ltd. RQ is the independent technology and management consulting firm and IK is the communication and training consultancy firm.

Al Awar concluded by saying that: “We recognize the need to meet the growing market demand for efficiency and effectiveness. We want to build on solid portfolios and services and further enhance our mediation between developers, customers and banks.”

Al Fara'a Properties Hands over Le Grand Chateau Project Ahead of 2010 Deadline

Le Grand Chateau is a residential development which is completed well ahead of its 2010 deadline and the project is set for delivery. Al Fara’a Properties which have announced the handover of these units is a member of the Al Fara’a Construction, Property and Industrial Group. The announcement coincides with the first batch of tenants moving into this high class luxury development in the very famous Jumeirah Village in Dubai real estate. This development has adopted top quality construction standards and the there is a great competitiveness among other landmark projects across the Gulf region.

The ‘Le Grand Chateau' project is greatly inspired from the 16^th century Chateaux architecture of the Loire Valley in France. This development features 15 four bedroom luxurious G+2 townhouses and other residential building block combining a total of 185 apartments. The project is completely furnished along with impressive designs blended with highest standards. The President and Executive Chairman of Al Fara'a Construction, Property and Industrial Group, Dr JR Gangaramani said: “We are thrilled to be the first developer to deliver a project in Jumeirah Village, ahead of our 2010 scheduled completion date. Through maximising our ability to deliver world-class turnkey solutions as a truly integrated construction group in the UAE, we believe that we have positioned ourselves as a real estate provider of choice to customers that seek solid investment solutions.”

A facilities management decision has been recently developed by the group which helps in optimizing the maintenance and other costs in order to ensure great investments. The project is ideally situated in the heart of Jumeirah Village. In addition to this, Al Fara’a Properties has partnered with Al Huzaifa Furniture offering great décor ideas centered on classic Italian Furniture, thus making it an ideal residential development.

Dubai Properties Group To Display 5 Projects At Cityscape

Dubai properties Group (DPG) is a member of Dubai Holding. It has recently announced that 5 new landmark developments will be showcased as these are scheduled for handover at this year’s Cityscape Dubai 2009. Cityscape is a largely organized business to business development event in the world and property investment. Dubai properties group is now participating in this grand event for the sixth consecutive year. The event will be held at the Dubai International Convention and Exhibition Centre from October 5-8. This well known property group has recently realigned its business in order to ensure long term profitability and investment to the company.

Group CEO, Khalid Al Malik, DPG, said, “Our participation at Cityscape Dubai 2009 not only allows us to showcase the diversity of our projects, but to demonstrate the tremendous progress we have achieved in delivering a remarkable number of unique communities in 2009, all contributing to the growth of Dubai. DPG looks forward the participating in this year's event as we have some exciting news to share during the press conference on the second day of Cityscape 2009.  We are confident our exhibit will be well attended by our stakeholders and industry peers.”

This is the first time at cityscape that Dubai properties group will present its completely integrated development profile. This complete profile leverages the strengths and portfolios of Dubai properties with Sama Dubai. Tatweer’s real estate projects are also incorporated including REEMRAM. Others include The Tiger Woods Dubai, Dubailand and Bawadi. This is to create the largest development based and real estate business in the region.

Dubai’s Al Barari Villa Prices Fall By 30%

Al Barari villas are the luxury developments in the very famous Dubailand. The prices for these villas have fallen by 30 percent in the past one year. Meanwhile, the developers are preparing to handover around 290 residential villas next month. The Chief Operating Officer, Mohammed Zaal told that the handover will be phased in four batches and the delivery of the very first batch will begin around next month and that the first phase of the handover was likely to continue until next year July. Moreover, due to the economic downturn which real estate developers and other property agents around the world are facing, these villa prices have fallen. Dubai real estate has also been under this turmoil situation, however, things are settling down slowly.

If we compare the prices from the last year, it was Dh15m-Dh30m and the price now ranges between Dh12 million and Dh20m. Apart from this Zaal said that Al Barari development has not suffered losses as this project was sold before the property downturn began. Moreover, the construction contracts have been fixed since the year 2005. Majority of villas have been sold and 50 to 60 percent of payments have already been collected. Alwadiya said that as far as property here is concerned; villas are more in demand due to their limited supply.

Once the first phase of the project is handed over the demand for these villas will gradually increase, representing a high absorption especially among superior class segment. 290 villas have been sold in Al Barari, out of which only seven or eight had mortgages in place and the rest are cash buyers. Moreover, various boutique hotels, Grand Mosque, cultural island, the Healing Haven spa and residential apartments will be the elements of the second phase of the development. Not only this, but the developers are constantly putting an effort to improve the construction design in order to suit customer needs.

Dubai Pearl Real Estate Development Achieves Key Construction Milestone

Pearl Dubai is one of the leading real estate developers in the UAE. A key construction milestone has been achieved at Dubai Pearl thereby, making it an excellent fully integrated luxury real estate development. In this Dubai property, one of the Middle East’s largest foundation rafts is being installed at Tower 1. Dubai Pearl development comprises of 4 towers and each of the 4 towers will have a foundation slab of a total area of 3072 Sq m and thickness of 3.25 m. The mining of all the towers was 8.07 m in depth to the ground level from the bottom of the raft and it was completed in 8 months. By the end of this year an elevation of 5 levels will be achieved on the main structure.

Al Habtoor Leighton Group was awarded the construction work of this real estate development at the end of 2008 thus; the main construction is being undertaken by this group. The President and CEO of Pearl Dubai FZ LLC, Santhosh Joseph said: “We are pleased to announce that the project is progressing well. We are forging ahead despite the current economic climate and are well poised to shape a development that will transform the landscape of the TECOM area and Dubai Marina. We would like to thank all our investors for the continued faith in the project and its promise.”

Dubai Pearl is located in the heart of Media Free Zone and Dubai Technology and it has become a landmark real estate development which has been designed to offer extravagant views of the Arabian Gulf. It is located just opposite to the Palm Jumeirah Island. Dubai Pearl incorporates the best of facilities and will soon be turned into a 24 hour living city. The development boasts of all its leisure, residential, hospitality, commercial and retail components. Moreover, it features an active business district with some of the top most brands. It also includes landscaped gardens, places with private pools and luxury condominiums and apartments.

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.”

Damac Properties Issues Tenders for Eight Projects

Damac properties are a globally renowned freehold real estate company in Dubai. It has been established in 1982 and today, is the leading Dubai property company. Moreover, Dubai based Damac Holding is one of the largest privately owned developers in the Middle East. It’s a luxury lifestyle provider which has announced the issuance of eight tenders in the month of August. The total worth of these projects is Dhs2bn. There is a complete list of projects for which the tenders are being issued which includes: Capital Bay, The Corner, Burjside Boulevard, Executive Bay, Park Central, Al Jawhara, Amber Residence and Lake Side. Apart from this, enabling tenders for Harbour Heights, Water’s Edge and Commercial Square have been issued.

The company has been criticized for non completion of some of the projects due to missing completion dates and deadlines. The General Manager of Operations of Damac Properties, Mr. Ziad El Chaar said: “The first half of the year we have made significant progress. We delivered over 2,300 units and we will continue to be aggressive on delivery. Continuing with the momentum of the year, in July we have issued 8 new tenders. In the next two years our aim is to have delivered a total of 25 towers totaling to 7,100 units.”

Damac properties have announced that earlier this year, three of the projects will get completed including The Crescent projects, Executive Heights and Lake View. Moreover, there is a notable progress going on various other projects. A floor is being built in every 5.2 days at the Ocean Heights tower in Dubai Marina which is now at the 71st floor. Floors are also being constructed at Park towers at DIFC. At Damac the years 2008 and 2009 have been busy years. A lot of hard work is involved by its team and other contractors involved within the projects thus, the year 2009 is heading towards the ‘Year of Delivery’.

Omniyat Properties Awards Main Construction Contract of Gemini Tower

The Gemini is a freehold commercial tower which is located in Business Bay in Dubai which is a prime water front location. Omniyat properties are the most innovative private property development companies. The company has been awarded with the construction contract in order to build The Gemini Tower to (CSCEC) China State Construction Engineering Corporation. The two distinct 20 storey towers is linked by a 15 storey block offers high grade office space in the UAE’s global commercial and business center. The tower is an impressive sculpture of granite blocks undercut with white glass and aluminum.

The Chairman and CEO of Omniyat properties, Mehdi Amjad said: “Having recently celebrated the handover of our two premium developments, Bayswater and The Square, we are delighted to move forward with yet another milestone and partner with CSCEC for the main construction of the Gemini.” It has been designed and planned by a local German joint venture named ARCIF. This Dubai property offers spectacular waterfront views of the Business Bay in Dubai. This 15 storey block incorporates freehold office spaces, serviced offices, car services and several dining restaurants. You can reach here using any mode of transport such as water-taxi, Dubai metro etc.

The interiors of the tower are fantastic raging from black and white lobby to bustling public areas. Superior materials have been used in its construction and an efficient planning has been done. The well planned design has ensured that international standards are being implemented in order to create a comfortable and an efficient environment. The Managing Director of CSCEC, Yu Tao said: “We are extremely pleased to be partnering with Omniyat for The Gemini development. We will endeavour to maintain Omniyat's vision and work towards the construction of a landmark project that sets the benchmark for quality in the region's real estate industry.”

Dubai Holding To Merge 4 Of Its Leading Property Entities

Dubai Holding is one of the well known and leading Dubai real estate development and investment firm issued a statement, that it will merge four of its leading property entities which includes: Bawadi, Dubai Properties, Sama Dubai and Remraam and the Tiger Woods golf course. These property entities are being merged in order to form one large property entity in the Middle East.

After combining these four, it will become one major property entity. This merger moves ahead of a planned merger between Dubai Holding’s property subsidiaries – Sama Dubai, Tatweer, Emaar properties and Dubai properties later this year. Dubai Holding also stated that it would also merge the back office operations in order to cut costs.

The merger between the two of these leading master developers is to be done by October as per the government’s plan. The merger of the two Dubai Holding’s three entities and Emaar’s merger would create a company worth an asset base of Dh194 billion and a debt of Dh13.4 billion. A rough idea of 7 percent of the total assets will be given. Moreover, they both are committed to finalize their merger somewhere around October. Merrill Lynch and RBS which were retained as the financial advisers for Emaar and Dubai Holding respectively are advising the two as far as the merger is concerned, as due diligence continues. Both Dubai properties and Sama Dubai together possess one of the largest land banks within the North Africa and Middle East region covering a geographical stretch from UAE to Morocco.

Reef Real Estate Launches R Serviced Offices

Reef Real Estate Investment is a Dubai based real estate developer. According to the analysts the serviced offices were in great demand. This developer adapted to the downturn quickly, and has launched its first R-serviced offices at Al Reef Tower which is in Jumeirah Lake Towers. These R-serviced offices have been set up in Dubai’s Multi commodities free zone. The demand for these serviced offices comes from various young local companies. The reef real estate developer has slashed its monthly rental offers from Dh15, 000 to Dh9, 000. Dh15, 000 was the average industry rates prior to the crisis for serviced offices.

The Dubai property market will begin to stabilize before the end of this year, which has been stated according to the reef real estate investment. The Chairman, Ahmed Mohammed Zaed Saqer Al Nahyan, said: “Prices in both the residential and office segments have gone back to their levels 5 years ago, but that is not necessarily bad because it is making Dubai more competitive. The property market is going through a down cycle right now.  It has absorbed the changes, but recovery will happen as landowners and developers are now less willing to offer distressed prices.”

Nahyan further said that despite of the economy recovers; the property prices will remain flat for 2 to 3 years. According to him, the demand will take some time to catch up with the speed. As everyone knows that this global downturn has greatly affected UAE’s flourishing property sector, especially in Dubai. Here the property prices have drastically fallen from their peak levels in late 2008. The prices are still falling, but at a lower pace as compared to the past. Moreover, these R serviced offices are the ideal options for companies today, as all look to reduce costs. With these offices, the companies can avoid excessive upfront expenses involved in opening a new office.

Media One Hotel in Dubai Set For October Opening

Media One hotel is located in the Media City district of Dubai, which will set its door open in October this year. This property in Dubai is particularly for those who are seeking comfort and style. This is one mixed use real estate development which comprises of hotel and offices located in Dubai Media City. This newly developed hotel promises the guests with a truly refreshing experience. It has been designed keeping in mind the savvy business travelers. Moreover, it aims to be the ultimate accommodation for professionals. The hotel occupies first 23 floors of this 43 storey tower and 260 guest rooms will be offered. Varieties of bars, cafes, gym and restaurants are available.

The hotel is fully equipped with meeting rooms, business centers and the remaining 20 floors of the tower will be devoted to offices. The GM, Media One Hotel, Cora De Conceicao-Stuart, said: “We are all incredibly excited about our imminent opening. The whole team is driven by a tremendous amount of energy and passion, and the speed with which preparations are coming along is truly remarkable. It is also important for us to recognize and thank the authorities for their unwavering support and encouragement, most notably the Dubai Municipality, Dubai Police, DTCM and TECOM.”

The hotel property is ideally positioned in the bustling corporate head quarters. This is an upscale 4-star property offering a blend of innovative design and modern architecture. Apart from luxury hotel rooms, meeting and business venues, there are selection of spacious lobbies, ample parking space and retail outlets. A lounge-style terrace bar is being constructed in order to complement the location and the lifestyle of the clientele of the hotel. Other than this there are stylish chill out cafes in the hotel.

First Casper Theme Park In Dubai

A new Casper Theme Park will be opened soon at Dubai Festival Centre in Dubai. This is the first Casper theme park in the Middle East which is expected to begin shortly. This theme park promises an unmatched entertainment and retail experiences. This unique entertainment park covers an area of about 6340 sq m. It is about to get launched in collaboration with a Future Kid Entertainment and Real Estate Company based in Kuwait. Casper is already a brand which is a cartoon ghost worth around Dh3.67 billion. Casper is a loving ghost who believes in making friends instead of scaring them. It creates a 60 years of global heritage.

The theme park will be a part of Dubai property sector and it features a lot of excitement and entertainment for kids and people of all age groups. There are various interactive games, bumper cars, drop tower, crazy rafts and a rollercoaster which creates a fun filled environment. The Director-Retail Leasing, Al Futtaim Group, Philip Evans said: “Festival Centre has always been recognized as a leading entertainment destination and this success, along with a few other exciting concepts, we plan to announce shortly, reinforces our belief that Festival Centre is the number one retail and leisure destination in Dubai.”

The theme park is one of its kinds in the Middle East and it boasts of the biggest monorail. Other than small rides, variety of latest rides and games will be offered here. The entertainment centre also has a gift shop featuring wide range of casper toys and souvenirs and a cafeteria. The Chairperson and Managing Director of Future Kid, Rasha Khalid Al Ghunaim said: “This is our first of many projects in Dubai and we are extremely satisfied with our collaboration with Al-Futtaim Group Real Estate. Casper Theme Park at Dubai Festival City will reinvent entertainment in the region. We have maintained the high level of quality and sophistication Festival Centre is so popular for and are confident of establishing a unique and engaging entertainment centre which will bring one of the most famous children’s character closer to home.”

Business Avenue To Be Ready By Year-End By Al Mazaya

Business Avenue is ideally located in Jumeirah Lake Towers. This Dubai real estate project consists of three 44 storey commercial towers which has a total worth of Dh1.25 billion. Al Mazaya Holding is one of the distinguished real estate development companies headquartered in Kuwait. The company offers products and services in various related fields. Moreover, Mazaya is one of the first companies that have launched a comprehensive real estate index in the GCC. The company has announced that around 65 percent of the construction work has been completed on Business Avenue.

This real estate development company has positioned itself in the Middle East property market. There are various projects including residential buildings, deluxe villas and other high class commercial projects such as industrial developments.

Moreover, finishing work has already started on the parts that have been completed in the project. Senior Vice-President of construction at Al Mazaya in Dubai, Fathi Al Dhameri, said: “Construction works at Business Avenue project is progressing well and according to schedule, despite some challenges faced during recent times. We are committed to delivering the project by the end of the year, and to highest quality standards." According to him the progress at Business Bay serves a great response. This has created a boom for the office sector in Dubai and those who believed that office sector has no future are stunned by this construction.

Fathi Al Dhameri further added “We believe that the office sector in the GCC and Dubai in particular, will definitely recover from the drawback it witnessed during the global financial crisis. Dubai is focusing on diversifying its sources of investments and attracting more companies and individuals to retain its leading position, which in turn will increase the demand for office space as companies require headquarters and facilities in the emirate.”

Price Index Cuts to Revive Investments in Dubai Property Sector

Earlier, Dubai property developers were reliant completely on off-plan sales in order to finance their future and other onging projects. At the time of property boom in Dubai, the demand for these off-plan properties was further promoted, however, the global crunch has made the finances extinct and the value of the off – plan property market virtually disappeared. This further leads to project cancellations and construction delays. As there were loan to value reductions and higher interest rates the disturbances in the real estate sector gets aggravated. Those developers who have good financial fundamentals could only carry their projects towards completion in this current situation.

In the current state, the prices for Dubai properties are quiet uneven and there are few takers for off-plan units. Moreover, the property sector is now dominated by the buyers there was an oversupply of units coupled with distress sales in order to raise liquidity for mortgage repayments are affecting sales price adversely. There are communities where distress sellers are disposing off properties. Currently foreign investor’s interest is attracted towards ready-to-move-in villas and apartments. Moreover, now the prices are being decided on the basis of quality of construction, the amenities to offer, accessibility and project location.

As per the market analysis done, there is still a strong demand in mid-level segments such as International City where prices have fallen by 25 to 30 percent. The prices have been corrected to realistic levels and the emirate has suddenly become a hot market of affordable properties. Moreover, these properties are not only affordable but also guarantees high returns in the long-term. According to the estimates the prices could continue to drop, whereas in Q4 it is expected to climb up again.

Rent And prices In Dubai To Get Stabilize

In certain areas in Dubai, there are seen some early signs of recovery as the rent and prices are getting stabilized. This is first seen in Dubai property market as the areas started to see the recovery include Dubai Marina, Emirates Living and Downtown Burj Dubai. This is because that these property projects are of higher quality and is very much attractive especially for people commuting to Abu Dhabi. The communities like The Springs, Downtown Burj Dubai and Jumeirah Beach Residence have not been affected majorly by the decline in the rent as these communities have seen the most inquiries as far as the tenants are concerned.

The residential areas in New Dubai have been explored by people and are still exploring by those who are working in Abu Dhabi as New Dubai is in close proximity to the UAE capital. According to the last industry reports, house prices and rents have significantly relieved in Dubai. The tenants are mostly looking residential units in community developments and they are majorly looking for three to four bedroom townhouses and one to two bedroom apartments. Moreover, the apartment and villas are eased by an average of 15 and 13 percent. Apartment and villa prices have really dropped.

As the property prices have begun to stabilize, Palm Jumeirah has shown a surge in sales prices for apartments and villas to about 20 percent and 7 percent in the second quarter. The agents said that in the first quarter four bedroom garden homes on The Palm were selling for Dh6.5 million which was earlier selling for Dh14 million. Moreover, it got changed in the second quarter as the average rent for studios eased from Dh61,500 to Dh45,000. Thus, these statistics show that the prices have greatly reduced therefore; the prices and rents are being stabilized.

Deyaar to Hand Over The Citadel in August

The Citadel is a premium 41 storey commercial tower which is located in Business Bay master development. It is one of the first ever projects that is to be delivered in this development. Deyaar Development PJSC is a regional Dubai real estate company which is dedicated towards strong customer care. Deyaar announced that in August it will handover all Citadel units. The Citadel features 565000 square feet office space including 29000 square feet of retail. The property also includes 406 contemporary and state-of-art commercial units.

Markus Giebel, the Chief Executive of Deyaar said: “With the handover of The Citadel, Deyaar will have successfully fulfilled its handover commitments for 2009.” Deyaar has already set certain specific benchmarks of quality and value on all the projects being developed. The projects developed by Deyaar occupy a place within the master development. Moreover, this is one of the largest real estate developers in Business Bay. He further added: “We are confident that the design and quality of The Citadel will prove to be extremely beneficial to all businesses and commercial establishments operating from the tower.”

A proper orientation program will be hosted by Deyaar on July 18, 2009 for all the customers. This orientation program is basically to update the customers for the procedure of the final documentation for their respective units. The building operating budget and facilities management contract will get discussed in this orientation. Moreover, The Citadel is one of the high quality in line projects which is delivered by Deyaar. This real estate project is highly equipped with ample parking space and 24 hr security, thus making it an ideal development.

UAE Rents Set To Fall

According to the officials and experts, residential rents in Dubai and Abu Dhabi are set to fall this year. In Abu Dhabi real estate the rents are expected to drop by 10-15 percent by mid of the year 2009. Moreover, in 2010, it is even expected to fall further. As far as the fall in rents is concerned in Dubai, they are particularly steep in Nakheel’s Discovery Garden development. Chairman of the capital’s Chamber of Commerce and Industry, Salah Al Shamsi said that this reduction in rents was expected because of the new units that are set to appear in the market. He further added: “A number of residential units will be delivered by Abu Dhabi's top property development companies. They are due to deliver units in mid-2009 or by October at the latest.”

Truth Economic Consultants study showed that 37, 851 units are already available in Abu Dhbai property sector and in 2008-2009 around72, 285 units are more likely to join the race. Meanwhile, the experts say that Dubai rental would grow probably at a slower rate as it was earlier. The Chairman said that the property and rental in the emirate has not been affected by the global crisis. He said: “Prices have not fallen as in other emirates. The reason is the high demand for residential units in Abu Dhabi.”

Moreover, the Managing Director of Asteco Property Management said that in Abu Dhabi, Dubai and across other emirates too, rental properties are still in strong demand. Charles Neil, Chief Financial Officer, Landmark Properties said: “We expect rental prices to remain relatively stable in 2009, but they are likely to soften in the first and possibly second quarter.” Moreover, the rentals are expected to increase further in Dubai.

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.”

Project Named After A Famous Tenor, Luciano Pavarotti Will Soon Be Added To Dubai Real Estate

A deal is signed with Nicoletta Mantovani, widow of Luciano Pavarotti a world famous tenor to build a real estate project The Pavarotti Tower in Dubai on the name of her husband. New World Investment, a registered real estate developer in Dubai along with an Italian Property firm Ellebiemme Immobili di Presitigio has collectively signed the deal. The project named The Pavarotti Tower will be a commercial as well as a residential building which will be built on Palm Jebel Ali. The construction of this residential as well as commercial project is expected to begin in the month of September.

A lawyer Thomas Paoletti, with Studio Paoletti which is a law firm representing Ellebiemme, based in Italy said: “The developers have no doubt that this project, the idea for which has been in the pipeline for some time, will be successful despite the current economic situation. One of the main reasons for developing this project was to highlight the image of Italy while focusing on a name which represents the country's standards of excellence." The project will feature a Pavarotti Gallery where the recordings of the tenor’s voice will be played in a museum which will be dedicated to his life.

Moreover, each floor of the tower will be dedicated to one of the operas performed by Luciano Pavarotti. Some of the operas include: Aida and Rigoletto. The interiors of the building will be designed by an Italian architect, Ettore Mocchetti reflecting the theme and story of each opera. This real estate project in Dubai will have its own restaurant run by a famous Italian chef and its own private beach.

Salwan will now Manage Executive Tower at Business Bay

Comprehensive property management services will be provided to the Executive Towers development at Business Bay. Dubai Properties has appointed Salwan for that matter as it will now be responsible for managing this 12 tower self contained Dubai real estate development for an area of 8.7 million sq ft. Executive Tower comprises of 10 residential towers, a Business Bay hotel and a freehold office tower. Dubai Properties has also mandated Salwan to extend the leasehold options for Executive Tower units. An amount of AED 15.38 per sq ft will be levied as service charge for maintaining the landscaped areas, indoor car parks and various infrastructure works within the development.

CEO of Salwan, Saeed Bushalat said: “As one of the leading property management companies, we are pleased to extend our offerings to Executive Towers. Our value added services are designed to exceed client expectations while ensuring the long term plans and sustainability of the development. We look forward to a fruitful relationship with the property owners and retailers at the development.” As the portfolio for properties around Dubai is growing Salwan currently owns and manages approximately 18,000 commercial as well as residential units at different Dubai locations.

An official spokesperson for Dubai Properties said: “In our committed endeavor to provide competitive services for offering a niche lifestyle experience, we have appointed Salwan Property Management to manage the Executive Towers that is quickly moving towards its handover phase. We believe Salwan has the expertise, the capabilities and the resources to provide premium services to the Executive Towers community and ensure the sustainable maintenance of the development.”

For Dubai properties, Executive Towers is the first project in Business Bay and following the successful release of Jumeirah Beach Residence a second major freehold project is to be handed over.

Design of Homes in Samarah Sea Resort Property gets completed

The second phase of the design of The Apartments in Samarah Sea Resort, a residential community has been completed by Emaar International Jordan, country subsidiary of well known Dubai real estate developer Emaar properties. The construction of the development is set to instigate shortly. The progress of this real estate project highlights the dynamics of the property sector of the Dead Sea region and Samarah’s great contribution to the local economy.

This project will be acknowledged for its higher and better property development standards. Moreover, these standards have been brought in by Emaar properties. Emaar properties are a reputed property developer which has a track record in developing internationally acclaimed projects around the globe. This real estate project that is being developed comprises of a cluster of 8 low-rise buildings. It forms an integral part of the Rift Living homes. Samarah Dead Sea Resort is a mixed use project incorporating the best modern amenities including beach clubs, hotels, retail units and various other leisure facilities.

The Rift Living homes are directly located on the Dead Sea. These homes are adjacently located to the waterway and across Wadi Mukheiris from the King Hussein Bin Talal Convention Centre and the sales center. The project work is currently progressing as per its schedule. GM, Emaar International Jordan, Radzi Zakaria said: “Samarah Dead Sea Resort is an unparalleled development in the Dead Sea region as it integrates the world-class design and development competencies of Emaar Properties. As a resort-themed project, Samarah is billed to energize the tourism and property sector growth of the Dead Sea region. This perfectly fits with the Government's plans to boost the region through focused investments.”

Steady Shift Shown by Dubai Properties

A Dubai based property consultant, Sherwoods Independent Property Consultants, has announced that Dubai real estate market has entered a new phase which is showing the signboard of recovery. It has been announced that a steady shift has been seen in Dubai property prices thereby, prices are moving towards a more reasonable level. Moreover, in starting of the 4^th quarter of the year 2009, more concrete growth signs in terms of real estate investments and property prices are expected to be seen. It has been predicted that the coming year 2010, will be a year for stabilization and a specific new direction for the real estate sector.

Sherwoods credited the most important players of the industry for quickly adjusting to the changes in the market environment. The MD, Sherwoods Independent Property Consultants, Iseeb Rehman said: “I would say that the prices have been corrected to reasonable levels, which has created more value offerings to buyers and investors. The positive signs we are seeing should result in more tangible proof of growth around the 4^th quarter of 2009, during which property prices will further stabilize and we can also expect a marked increase in property investment.”

In 2010, Dubai will get transformed into a stable market as far as property investments are concerned. The available property prices today, are the best for long term investments and the investor is expected to make good profits out of it. At this point in time, investors those who want to invest in property sector for short term are not advisable to do so. Sherwoods acknowledged the remarkable performance of the property sector in a situation of global economic downturn and Dubai’s decision to enhance the infrastructure in the emirate.

Attractive Finance for Executive Towers by Dubai Properties

Dubai Properties is a subsidiary of Dubai Properties Group (DPG). It has announced its coalition with the Standard Charted Bank in order to offer Easy loan mortgages. This easy loan serves as a great funding option for potential buyers and those who are the existing owners of the residential units at Executive Towers. This master development is a unique property in Dubai ideally located at one of the prestigious development in Business Bay. The Executive Towers comprises of both commercial as well as residential units.

Customer’s property will be evaluated directly by SCB as a part of this easy loan by some independent surveyors and finance is being offered with minimal documentation requirement from the client. This easy loan mortgage product is beneficial for those who are resident in the UAE and they should also meet some specific eligibility criteria for that matter. This mortgage product offers financing of up to 40 percent of the total property price. The Group CEO of Dubai Properties Group, Mohamed Binbrek said: Dubai Properties' alliance with Standard Chartered, one of the leading Mortgage Providers, is part of an endeavor to provide our clients with viable loan options. We are focused on leveraging synergies across the real estate sector and aim to continue delivering strong investment values to our customers and give them the confidence and security to invest in the real estate market.”

The advantage of these financing terms can be taken by the customers for the final payment for tenure of 3 to 25 years. This financing term is on Dubai Properties Executive Tower residential property units. The financing term for the final payment varies from Dh150000 to Dh10 million. As part of the loan customers can also finance their land registration charges.

After Emaar and Dubai Properties Merger New Entity to have Dh194bn

Emaar properties have a proposed merger with three Dubai Holding entities and it has been said that now the combined assets are Dh194 billion. Moreover, with their merger a new entity has been created. Emaar Chairman Mohamed Alabbar said to Dubai Financial Market: “The new entity will have Dh13.4 billion of debt obligations, around seven per cent of total assets valued at Dh194bn.”

Dubai properties, Sama Dubai and Tatweer, all three entities of Dubai Holding have a solid land bank, thereby, contributing positively to the consolidation. At the end of the year 2008, the 3 real estate developers excluding Emaar properties has a total asset of Dh126 billion, moreover, an external debt of Dh3.4 billion. This complete are just 2.7 percent of the total assets of the 3 companies. As per 31^st March 2009, the total book value of assets of the largest listed Arab developer was at Dh68bn. The total debt obligation comes out to be 15 percent of total assets that is Dh10bn. Sama Dubai, Dubai properties and Tatweer are the three entities of Dubai Holding which are valued at Dh126bn as of December 2008. Moreover, they have external debt obligations as well which are around Dh3.4bn.

Although, four of them will join their assets, however, they will also share a debt of Dh13.4 billion. Out of these 4 Emaar properties is the only Dubai real estate developer that is being listed on DFM which at the end of March had the total assets worth Dh68 billion and the debt obligation of Dh10 billion.