Al Attar Properties Serves Legal Notices To Investors

A legal notice has been served to all the investors by Al Attar Properties, a Dubai based property developer. The investors of a commercial tower, The Skyscraper in Business Bay development is seeking payments in order to continue with its construction. The Project Manager – Head of Projects & Finance, Bipin Tavarool of Al Attar properties told Emirates Business, “We have already linked our payment plans to construction milestones and investors were required to pay after we completed piling. Only five to 10 clients have paid... we have an outstanding of about Dh68 million on the project.”

On the completion of shoring and piling, the first installment of 15 percent was due. The investors were served with notices through concerned authorities and we are requesting them to pay their dues. Tavarool further said, “We have sold up to 55 per cent of the project and expect completion by 2011. So we have invested more than Dh60m-Dh70m from our own pocket to continue construction.” The developer is considering to give an option to the genuine buyers in The Skyscraper to move their investments to Polaris.

Tavarool further said, “We are considering transferring our [The Skyscraper] investors, who have continued to pay, to Polaris. Those who haven't will not be given this offer. Clients need to pay. We were not collecting any money from clients on any of our projects for the past 18 months... now we are starting and so they should pay.”

Meanwhile the Dubai real estate developer is also offering the investors a chance to invest in three of their International City projects. They are given the chance to swap their properties for units in Vista Del Lago and Vue Du Lac in Jumeirah Lakes Tower development. Tavarool told that that there is a lot of space in the JLT Towers and thus they have started that swap offer.

Dubai Population’s Real Estate Sentiments Show by GRMC Survey

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

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

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

Burj Khalifa Unit Rents to Outdo Other Established High Rises

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

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

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

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.

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

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

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

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

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

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

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

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

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

Burj Dubai Inaugurated and Renamed as Burj Khalifa Transmuting Record Books

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

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

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

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

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

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

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

New Legislation on Dubai Real Estate Rent Cap in 2010

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

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

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

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

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

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

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

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

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.

Development of Facilities by Landmark in UAE

A property and facilities management solutions in order to safeguard the investment of freehold buyers has been developed by Landmark Properties, one of the leading property brokerage firms and consultancy in the UAE.

The firm offers solutions to real estate clients all over the world and delivers authoritative, comprehensive as well as independent advice. The affiliates of Landmark include Landmark Advisory and Amlak Finance PJSC which are recognized as the top level real estate companies of the Gulf.

Landmark Properties has developed a property and facilities management solutions to safeguard investment of freehold buyers.

The Head of Property Management of Landmark Properties, Donna Newman said, “A robust property management strategy is key for both overseas and UAE-based property owners as we deliver a range of cost-saving options, from identifying snags in new properties being handed over, to managing the rental relations with tenants on their behalf.

"The potential cost savings for proprietors using Landmark's Property Management (LPM) services, and homeowners using facility management services, far outweigh the service repair costs, in addition to minimizing potential future problems that can occur in a freehold property." He said.

The cost of Landmark Properties' Property Management solutions begins at five per cent of a property's rental value, with the minimum set at Dh3, 000.

Newman also said, "A landlord requiring property management for their unit will find that the preventative costs of our packages may be minor to the actual cost of potential problems in this apartment."

He added, "For instance, the rectification of ceiling defects would cost approximately Dh2, 000 for owners to fix. Common bathroom snags, including leaking toilets and showers or shower heads snapping off are on average Dh400-600 per visit by plumbers to rectify. Looking at these snags, this is already a considerable cost without taking into consideration anything else that may happen throughout the year."

Global Crisis to Come to an End Due to US Recovery

According to the Foreign Minister, Sheikh Abdullah bin Zayed Al Nahyan, “The recovery in the economy of US which is the world’s largest economy, will bring the global financial crises to an end and is expected to help economies of the countries to leap back including UAE.”

He also added that the problems of the emirate of Dubai regarding debt have been taken care of depicting that the country is united not only politically but also economically and the leadership is committed to deal with all the negative impacts of the global crisis. This will help recover through the crisis in real estate of Dubai as well.

He told, “I believe the (global) crisis will be behind us once the United States recovers and we believe the United States is recovering, which will reflect on other countries.”

According to The Commerce Department report on retail sales, “It is a key to renewed economic growth, was much stronger than analyst expectations for a 0.6 percent rise. Investors also took heart from the University of Michigan consumer confidence index, which registered a rise in December that beat analyst expectations at 73.4.”

“The economic crisis in Dubai is over,” Sheikh Abdullah said, adding that the UAE government was “committed to dealing with the effects of the global crisis” for all member emirates. He said support from the federal government “is proof that the UAE is united politically and economically. It is also proof that UAE remains committed towards local government to deal with effects of the global economic crisis.”

The Government of Dubai last Monday announced that it would pay off $4.1 billion in debt repayments due on an Islamic bond of property developer Nakheel. It said that the Government of Abu Dhabi has agreed to provide $10 billion to support its plans to manage the debt of its flagship conglomerate Dubai World. Financial markets in the UAE and across the world cheered the move. Concerns over Dubai’s debt have since eased.

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.

Significant Progress on Tamani Hotel Business Bay

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

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

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

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

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

Dubai Developer Nakheel Bailed Out by Abu Dhabi

The struggling Dubai based developer Nakheel, property arm of Dubai World and the back behind master projects like Palm Jumeirah, The World, Jumeirah Islands, Discovery Gardens etc.; has been bailed out finally by Abu Dhabi by enabling it to pay off a $4.1 billion sukuk bond.

The Chairman of the Dubai Supreme Fiscal Committee, Sheikh Ahmad Bin Saeed Al Maktoum, said, “The Government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World.”

He further added, “As a first action for the new fund, the Government of Dubai has authorized $4.1 billion to be used to pay the sukuk obligations that are due today.  The remaining funds would also provide for interest expenses and company working capital through April 30, 2010 - conditioned on the company being successful in negotiating a standstill as previously announced. In addition, the Government of Dubai is particularly focused on addressing the concerns of Dubai World trade creditors within the Emirate of Dubai.  To help address these concerns, today the Government of Dubai is announcing that the remainder of the funds provided will be used for the satisfaction of obligations to existing trade creditors and contractors. Discussions with affected contractors will begin in short order.”

The total debt of the Dubai government and its state-run companies is a minimum of $80 billion and some experts believe it could run into $100 billion plus. Today’s cash is not the first bail out from neighbouring Abu Dhabi. Two Abu Dhabi controlled banks subscribed last month to a $5 billion bonds package issued by the government of Dubai and the UAE central bank provided a $10 billion bond in February earmarked to help Dubai sort its debt problems.

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 Office Rent: Still Among the Top Ten Places

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

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

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

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

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

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

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

Property Investors Can Be Protected from Aftermath of Crisis- New Real Estate Laws

A new law is being worked upon by The Real Estate Regulatory Agency in Dubai which will give new rights to property investors. The law has not been revealed but according to a spokesperson, it is going to be comprehensive and seek to protect the investors.

‘Along with the Dubai Land Department we are studying a new law to protect the rights of real estate investors. Our ultimate goal is ensure justice and set up proper rules and regulations to regulate the relationship between developers and investors,’ the spokesman said. He also added that a draft will be ready to be sent to the Executive Office in order to get the approval by the first quarter of 2010.

The new law is expected to recollect the confidence among the investors of the Emirate followed by the exposure that the owners of developers Nakheel, Dubai World, has huge debts of $59 billion and is attempting to restructure some of it.

It is expected that the real estate industry will welcome more transparencies further.

According to Jason Manolopoulos, managing partner of boutique investment firm Dromeus Capital, the current crisis has raised concerns over corporate governance and transparency to a much higher level.

‘Investors should have been wary about the fundamentals of Nakheel. Everyone was fully aware of the overcapacity on Dubai real estate

I think 2009 will be remembered as the year when the idea that an implicit guarantee should be priced only slightly wider than an explicit guarantee was relegated to history,’ he explained.

‘Investors will have to differentiate, and the selling of companies on the basis of their connections and strategic importance will no longer work,’ he added.

‘It's clear there will be job cuts but it's too early to know the extent of it,’ Raj Madha, an analyst at regional investment bank EFG-Hermes said.

Realty Disputes to Be Sorted By Professional Mediation

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

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

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

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

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

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.

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."

IFA Hotels and Resorts Launches Condominiums

The leading foreign investor on the Palm Jumeirah, IFA Hotels and Resorts has announced the launch of its second hotel condominium ownership merchandise in the Middle East.

The new offering is located within the five-star Fairmount Palm Jumeirah hotel in Dubai and is certainly of a particular interest for investors who are aspiring to branch out their property portfolio. The venture is a unique real estate selection that unites both the business of capital growth potential as well as guaranteed rental returns accompanied with the pleasure of a hassle-free vacation property.

The concept also permits initial investors to purchase a fully-furnished, five-star hotel room within a rental pool system. This guarantees annual returns of 10 percent per year for the initial five years underwritten by IFA Hotels and Resorts during the hotel stabilization phase and a guaranteed buy back premium of 10 percent after five years from the hotel’s opening.

Werner Burger, President and COO of IFA HR stated, “Worldwide, hotel condominiums are one of the fastest growing sectors of the real estate industry. As the first company to introduce the concept of hotel condominium ownership to the Middle East, we have seen its appeal continue to grow, particularly in markets like Dubai where hotel occupancy is still one of the highest in the world,”

Hesham Delineates the Ways to Maintain Price Rise

With Dubai real estate market coming back on its track, Hesham Elfar of Coldwell Banker UAE delineated the postulates to ensure that it stays the same way.

Dubai developers along with the realty agents are wondering after the watching the price rise in properties that whether the market has really bottomed out. Commenting on this Hesham Elfar, CEO of Coldwell Banker UAE, said, “One thing is for sure, if we have not reached the bottom, we are very close to the bottom."

According to Hesham’s predictions, there may be a further plunge in prices before things progress. "In the next six months, villa prices should remain stable while apartments might see a drop of 5-7 per cent due to excess supply expected in the coming months. With commercial properties we are expecting a downtrend in prices, also due to upcoming supply."

The players of the realty world however, must not become too contented. Hesham believes that there is a lot more to be done before Dubai can spring back. "Firstly, the residence visa issue should be re-evaluated, as this has lured a lot of people into investing in real estate in Dubai. They have replaced the three-year visa with a six-month multiple entry visa, which is expensive and requires a lot of paperwork. It makes life more complicated; with this visa people cannot buy a car here or place their kids in school. It's very important to resolve this issue, because it will attract foreign investors."

Hesham added that in order to fuel the commercial market, incentives should be offered to the companies to set up shops in the UAE by the governments. "When companies set up offices in a country they create job opportunities, housing requirements and increase consumer spending -this is important for the economy. They should especially offer incentives to financial institutions and trading companies."

But primarily, the industry needs lucidity, he added. “They need to have clear, transparent regulations in real estate and ensure that buyers' rights are protected."

Marina Residences Units Handover Instigated

The handing over of homes at Marina Residences, Palm Jumeirah, has been instigated by Master developer Nakheel. The first residents are expected to slither in by the end of November according to a top company executive.

"We have started handing over the building and already sent notices to 140 customers. We are expecting the first customer to move in by end of the month," told Marwan Al Qamzi, Group Managing Director of Nakheel Development Projects. He added, “We are also gathering all service providers under one roof so that the tenant does not have to go to many places and almost all the units have been sold".

Qamsi also reported that the handover of 980 units at Marina Residences which is at the tip of the island’s trunk will continue by early next year and the development will observe the moving in of 2000 residents on the Palm Jumeirah. "Our focus is on delivering quality communities and the handover of Marina Residences marks another major milestone on Palm Jumeirah.Going in to the New Year we are pleased to welcome more families into this growing community."

The development figures in six residential towers having 980 units in all out of which 940 are a blend of penthouses and apartments. The most luxurious penthouses offer more than 14000 sqare feet of living space which are designed over four floors. Palm Jumeirah is now an abode to more than 12000 residents. Around 40 townhouses are positioned along the marina faced promenade.

Free Legal Service Launched by Dubai Land Department

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

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

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

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

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

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.

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.

Two CNBC Awards for Schon Properties for Best Projects in Dubai

Schon Properties has been awarded with two awards this year. The CNBC Arabian Commercial Property Awards 2009 has announced these awards under the categories of Best Office Development and Best Mixed-Use for their two major property projects Schon Business Park and Dubai Lagoon respectively. The International Property Awards and the Arabian Commercial Property Awards are run in conjunction together and is one of the most prestigious competitions for finding the best professionals of the real estate industry from all over the globe. Landmark projects in Dubai are being developed by Schon Properties as a part of their Dh10 billion property portfolio.

VP, Danial H. Schön, Schon Properties said: “At Schön, our commitment towards the interest of our customers and investors has always been at the very heart of our vision. It is an honor to be recognized for our unwavering dedication. And in addition to marking Dubai Lagoon and Schön Business Park as the best developments across the region, this award will drive us to deliver the quality and confidence our customers have come to expect of us.”

Dubai Lagoon is located in the heart of Dubai Investment Park and is a huge project in real estate in Dubai. It has recently finished the last phase of its construction and the first batch of apartments is soon going to be delivered. The Business Park facilitates with 410 offices, capacity of accommodating 4000 employees. It also includes a state-of-art business centre which is operator-managed including various hi-tech business facilities and amenities. The facilities include: video conferencing and executive boardrooms. The Arabian Commercial Property Awards will be held on October 25, 2009 at Madinat Jumeirah in Dubai.

Nikken Sekkei to Display Latest Sustainable Projects

Nikken Sekkei will be presenting a range of selected green designs from its extensive international and regional portfolio at Cityscape Dubai which is one of the largest real estate investment and business-2-business show. Nikken Sekkei is the global leader and top architectural practice in sustainable design. This Cityscape Dubai event is the largest show showcasing real estate in Dubai and other emirates and is going to take place at the Dubai World Trade Centre starting from October 5-8, 2009. In previous years, Nikken Sekkei uncovered the Cool City and ECO Towers real estate projects using advanced energy and market-tested solutions. This time it is highlighting the innovative and exclusive ideas of sustainable architecture and what it will look line in 2020.

The Chairman, Mitsuo Nakamura of Nikken Sekkei, said: “The general public is more environmentally aware than ever before and carbon emissions are a contentious issue. Developers are now insisting on structural designs that comply with LEED standards and the use of environmentally friendly materials and coatings. Building owners are now also more commercially aware of the benefits of embracing sustainable design, in relation to maintenance and management costs over the lifetime of the building. So once again, Cityscape Dubai will provide us with an appropriate platform to demonstrate our sustainable design excellence capable of delivering substantial energy savings.”

This year in Cityscape Dubai, various technically advanced projects are to be showcased including Tokyo Midtow, Mode-Gakuen Spiral Towers, Shibuya New Cultural District Development Project, Pola Museum of Art, Toho Gakuen School of Music Annex, Guangzhou New Library and various other local projects such as Jumeira Gardens Techonopreneur City and Burj Al Alam etc. These are some of the top real estate projects that are to be showcased in this year’s grand property event.

New Office in Dubai Silicon Oasis by Red Flag Group

The Red Flag Group is a leading advisory, due intelligence and technology firm. The Dubai Silicon Oasis Authority announced that they have set up an office at Dubai Silicon Oasis which is a hub for hi-tech industries, thus expanding their global presence. The Red Flag Group basically assists companies compliance programs and conducts, developing ethics, breaches of the US Foreign Corrupt Practices Act and last but not the least audits. This newly opened office at DSO will offer complete range of compliance related and ethics services along with online training and in-person training programs.

This DSO branch will be headed by Randa Almomani as the General Manager. Almomani is a 10 year veteran in information technology development and integration. Apart from the General Manager, he also serves as the company’s Lead Customer Advocate for managing approvals, management, escalations and ‘conflicts of interest’ disclosures. He is also the group’s head of the Greater Gulf region. The CEO, Red Flag Group, Scott Lane said: “Dubai was a natural growth area for the Red Flag Group because of its growing focus on corporate governance and compliance. With the Gulf region becoming more globally active, companies and governments are recognizing the value that good corporate compliance can bring.” He further added: “As we develop compliance-driven technology solutions for some of the world’s leading companies, DSO was our obvious choice. We are confident our presence at the technology park will help us develop greater synergy with its business partners that comprise some of the world’s best known names in the industry.”

The Red Flag Group will be benefitted by the strategic location of Dubai Silicon Oasis with quick and convenient access to Jebel Ali Port, Dubai International Airport and city’s central business district.

Emaar and Nakheel to Participate in Cityscape 2009

Cityscape Dubai is the largest business to business real estate development and investment exhibition. Nakheel, the state owned master real estate developer has now agreed to take part in this grand real estate event Cityscape Dubai. Earlier, these two famous Dubai real estate developers have decided not to participate in the event; however they have now reversed their earlier decisions. Emaar Properties said that they will participate in order to explain the growth strategies and expansion of their work by various business segments. They need to further explore the new geographies especially, in North Africa and Middle East.

Nakheel’s decision of participating in Cityscape Dubai 2009 was followed by discussions with partners, leading event organizers and various industry stake holders. Moreover, they both said that they would not be participating in Dubai’s premier real estate show. On Saturday, Nakheel said: “It would focus on exhibiting communal properties on several of its developments that are close to completion.” Emaar will also feature various lifestyle communities which the company is developing in Dubai and in other international markets.

Recently, Nakheel has completed the handover of 33 islands on The World. There are various other property developments in its portfolio for which the handovers are scheduled. The company is further preparing for the inaugural Dubai World Championship Golf tournament which is going to be held in November at Jumeirah Golf Estates. Earlier Emaar refused to participate as they wanted to focus on its existing portfolios. Emaar Properties is set to merge with three government owned property units. Now, both have decided to take part in this grand real estate event.

Special Ramadan Deals For Properties At Downtown Burj Dubai by Emaar

Emaar properties are one of the leading global real estate developers in Dubai. As Ramadan is going on Emaar unveiled some special Ramadan packages at competitively priced apartments. Moreover, they are giving flexible purchase options and other unique benefits that include: up to one year waivers on maintenance fees for residential units in real estate in Dubai in one of the most prestigious developments that is Downtown Burj Dubai. There is several property units which are new to the market and are on the offer. All these properties can conveniently access various local attractions including The Dubai Fountain, The Dubai Mall and various other entertainment destinations.

The sales initiative is for residences in all established communities including Burj Views, The Old Town, South Ridge and The Residences. MD-UAE, Emaar Properties, Ahmad Al Matrooshi said: “Emaar's new initiatives for the Holy Month of Ramadan and through September are specially tailored to offer several advantages for customers. These offers are part of our concerted efforts to support our customers and assure flexible and attractive options when making a purchase decision. Customers can also meet with our mortgage consultants at the Emaar Square Sales Centre for free consultancy.”

A special and attractive offer for Rent To Own customers is announced who convert to ownership by the end of the September. This Rent To Own scheme was unveiled last year, thereby, offering the customers to rent a home for one year. Easy mortgages of up to Dh2.5 million on variety of studios to 3 bedroom apartments, however, this benefit follows only for potential customers. Emaar Square Sales Centre is the mortgage consultants of the company which are giving free consultancy to the clients who are interested in the offer. For details, potential customers must visit Emaar Square Sales Centre.

Address Dubai Mall To Add Extra Comfort For Shopping

The Address Dubai Mall defines new meaning and style in upscale hospitality. This is more than an outstanding accommodation and is an impressive and premium destination for business and leisure travelers alike. This luxury accommodation is beautifully designed and is ideally positioned within the surroundings of Downtown Burj Dubai. The Address Dubai Mall is one of the newest hotels in the Address Hotels and resorts, now offers an ideal prospect for an exciting shopping extravaganza. This extra comfort for shopping is scheduled to open next week, moreover, the hotel is suitably connected to the very famous and world’s largest entertainment and shopping destination The Dubai Mall.

The hotel comprises of 244 luxury rooms enriched with fine décor, celebrating the Middle East traditions. All this has been designed in order to provide that extra comfort and luxury to the travelers. The General Manager of The Address Dubai Mall, Mr. Olivier Heuchenne said: “The Address Dubai Mall builds on the key differentials of The Address Hotels + Resorts in assuring tangible guest benefits, marked by the highest standards of services in one of the city's most popular locations; The Dubai Mall, which is now the retail and leisure hub of the region.”

Address Dubai Mall offers unparalleled choices of lifestyle and shopping. Mr. Olivier Heuchenne further added: “The Address Dubai Mall offers an exclusive blend of traditional Arab hospitality in the most contemporary and cosmopolitan environment keeping in mind the priorities of sophisticated travelers and shoppers.”

Dubai Metro Hopes To Boost Property Prices

The Dubai Metro will release soon as it will be officially inaugurated on 9^th September. Moreover, with its inauguration it is expected to play a very decisive role as far as real estate in Dubai is concerned. It is expected to increase the value of the nearby properties and with this new modern line, the traveling for residents and visitors will be much easier. Initially, metro’s red line is the first line to get opened and will have 10 stations. The metro line is also a huge attraction to two important communities, Jumeirah Lake Towers and Dubai Marina. So, now more buyers will get attracted towards property developments which are located closely to these metro stations. Hence, these properties are more marketable as told by a property management firm.

The metro line starts at Rashidiya and it has a stop at Terminal 3 of Dubai International Airport. It will run along the Sheikh Zayed Road and through the city center. The first stations which are getting opened soon will be at: Al Rigga, Union, City Center, Mall of the Emirates, Financial Center, Khalid bin Al Waleed, Jafliah and Nakheel Harbour & Tower. Another line which is the Green Line is also under construction and it will run along Dubai Creek and will have 18 stations. The Dubai metro will also have a station at the famous Burj Dubai. Now metro users will have an easy access to the world’s largest shopping mall and tallest building too.

The tower is ideally located in Downtown Burj Dubai and there are variety of entertainment centers, business areas and residential locations in the neighborhood. When it will be completed, around one million people will start working and living in this part of the city. Thus, if metro proves to be a successful venture, then properties near to the station will fetch a premium, like any other city.

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.

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’.

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.

Sega Republic Indoor Theme Park Opens At The Dubai Mall

Sega Republic indoor theme park is the newest attraction which has been developed by Emaar Retail in association with Japan based Sega Corporation. It is a 76,000 sq ft indoor theme park that has opened on Friday at the largest entertainment and shopping destination in the world. This is the newest leisure attraction in the mall. Sega Corporation is well known for world renowned video games and is currently one of the comprehensive leaders in high-tech entertainment industry. The theme park is designed to meet the expectations of the adventure lovers. Visitors can look forward for over 150 amusement games. The amusement games are being designed in order to meet the expectations of the youth.

The Chief Executive Officer, Mr. Arif Amiri, Emaar Retail said: “The much anticipated launch of the Sega Republic indoor theme park marks yet another milestone for Emaar Retail. Sega Republic is the first of its kind in the Middle East and it delivers an unmatched, distinctive leisure experience for all visitors. The theme park complements the myriad of other leisure attractions within the mall and provides quality entertainment for all visitors.” Sega Republic ensures that visitors will enjoy the thrill with nine adrenaline – pumping attractions such as Sonic Hopper, Storm-G, Spin Gear, Halfpipe Canyon and a lot more.

Moreover, there are various other attractions which are spread over five themed zones including sports, cyberpop, redemption, speed and adventure. The theme park is incorporated with all action packed fun. There are motion-simulators, classical carnival games, prize – winning redemption games and various other selections of prize winning games. Moreover, the theme park is combined with latest and leisure technologies providing a cutting edge interactive entertainment. The visitors will get a virtual experience with a light-hearted fun. The theme park operates the same hours as the mall with convenient parking. Thus, now to get adventure filled fun and excitement, you have a great place to visit.

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.

Al Fara’a Affirms Steady Construction Progress Across Its Development

Despite of the present Dubai property market scenario, Al Fara’a Properties, a member of Al Fara’a Construction Property and Industrial Group has confirmed the steady growth of their projects because of which delivery of several other projects in the UAE got delayed. This construction group has a solid track record of three decades now. The developer of the projects announced that the track hits the delivery targets for Mulberry Mansions and The Manhattan. These both are scheduled for the last quarter of the year. This announcement indicates that the developer is committed to deliver the projects in the stipulated time in order to safeguard the interests of the investors and customers.

The Manhattan will offer 355 units featuring one to three bedroom apartments and selection from wide varieties of studios. Murberry Mansions is the leading third project unit being developed within Jumeirah Village comprises of Victorian-style townhouses, terrace, private garage along with maid’s room with a separate access. In addition, the residents enjoy the benefits of top class educational and medical facilities along with movie theaters, shopping malls, parks and beaches. The Director of Al Fara’a properties, Natasha Gangaramani commented on the progress: “Construction on ‘The Manhattan’ is on schedule, with the ground floor slab already constructed in its entirety, including the ramps leading to the three basements. We believe that swift, efficient and timely handover of projects holds as much importance to investor as the value of investment driven by construction quality and facilities offered.”

Gangaramani further added: “Backed by the three decade strong solid track record of the Al Fara’a Group as well as the flexibility to meet our primary goal of excellence, we have recently launched our facilities management division, which will enable us to ensure that all our on-going projects will be built according to global best practices.”

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.”

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.