Abu Dhabi Property Prices Are Stable Now

According to one of the leading real estate consultancy companies in the Middle East, Landmark Advisory, October and November are the two months in which the sales have really become active as far as Abu Dhabi real estate is concerned in the year 2009. The demand focused on developments which were just on the verge of completion such as Al Reef villas, Marina Square, Al Bandar and Sky Tower. The investors are looking forward for the completed properties and waiting for the dates to be announced by the developers.

Throughout the fourth quarter of 2009, the transactional prices have remained stable according to company’s latest sales guide and until the properties are handed over in 2010, it is not expected to boost. However, the prices for the properties which are close to competition in 2010 are likely to augment. As the developments are near to the completion date the transaction volumes might get increase which could lead to marginal increase in prices.

A marginal increase of 5 to 6 percent has been seen in the asking price with an exception to Al Bandar property development. This property development in Abu Dhabi will likely to start drawing buyer’s attention by reducing the prices of Al Bandar. Currently a very small number of buyers are active in the market. Moreover, the demand can further be restricted if the delivery dates most notably for Marina Square and Al Bandar are postponed.

Realty Firm Oger Dubai Confirms Fallout with Daman

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

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

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

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

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

Dubai Bank Announces the Opening of Two New Branches

Dubai Bank has recently raised its branch network across the country by announced the opening of two new branches in Dubai. These two new branches are getting opened in order to meet the growing demand for banking operations. According to a statement the lender now has a total of 23 branches in the UAE, out of which 12 branches are in Dubai itself. Mohamed Amiri, the head of retain banking at Dubai Bank said, “The launch of our new branches is testimony to the rapid growth of our customer base and their increasing demand for our services.” He further added, “Our new premises are in prime business locations and will allow our customers in the Sheikh Zayed Road/DIFC vicinity to conduct their banking needs with greater convenience.”

These new locations at the Sheikh Zayed Road and Dubai World Trade Centre have further expanded the branch coverage of the bank. One of the two new branches is located next to the Shangri-La Hotel on Sheikh Zayed Road and the second new branch is ideally positioned at Dubai Convention Centre which is an ideal banking destination for both retail banking and business banking customers. The branch on the Sheikh Zayed Road incorporates a dedicated Royal Banking Section.

Recently Dubai Bank has been named as “Best Islamic Bank” by Ethos Consultancy. Both the newly opened branches offer a wide range of corporate, business and personal banking facilities or services. Cash deposit machines and 24 hour ATM’s are also available. The Head of Branches of Dubai Bank, Tariq Al Farsi said, “Our new branches are in line with the bank’s vision to increase our presence in the UAE and to be closer to our customers. Last year, we opened two branches and we are happy to continue the trend this year, while maintaining our focus on serving our customers' needs.” He further added that a total of 20 employees will serve the customers from two new locations of the bank.

Dubai Property Prices Could Fall: Banks Become Aggressive In Pursuing Repossessions

From the current levels, the property prices in Dubai could fall by another 30 percent. According to the analysts by the end of the 2011, somewhere around 150,000 homes could be lying empty. The UBS has forecasted that there will be a blow to the emirate’s property market with the prices down by up to 50 percent. It is also reported that Palm Jumeirah which is one of the most iconic developments in Dubai has seen its first repossession.

An analyst Saud Masud said, “We reiterate our view that by end of 2011 Dubai property oversupply on residential and commercial properties may reach roughly 40 to 50% and house prices may decline another 30% from current levels.” He further added, “We estimate total Dubai housing supply by the end of 2011 to be roughly 360,000 with oversupply potentially at 150,000 residential units.” Property investors in the UAE may find it cheaper in the auction market up to 40 percent as higher default risks ignite to more bank repossessions.

The bank sold the apartments in the exclusive man made island Palm Jumeirah for AED745 per sq ft which became a symbol in Dubai real estate market. Last week the owner’s bank took over the three bedroom apartment in Al Shala on the prestigious development. It was taken back after he failed to resolve the Dhs1.7 million of outstanding debt. Quickly the bank moved to shift the property. A number of repossession orders on properties in Dubai have been won by the UK based Barclays and now the banks won’t hesitate in order to follow the suit.

According to a banking analyst at an investor service, Antoine Yacoub banks will now become aggressive in practicing a legal action. They were trying to restructure most of their loans, however, once a precedent has been set, more cases will be encouraged to put through.

Hybrid Cars to Join UAE Ministry’s Fleet

This year a new addition is commenced as a group of environment friendly hybrid cars will soon be launched in the vehicle fleet of the Ministry of Presidential Affairs in the UAE. It has been announced by the Ministry that these hybrid cars will be introduced which is a part of the commitment in order to introduce the best practices on protection and sustainable conservation of the environment. The delivery of a number of these cars will be taken by the protocol department.

These hybrid cars will be used in transportation of high profile state visitors and VIP’s. This move is in accordance with the H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs which in turn is to create a clean and safe environment, in order to match up with the standing of and the reputation of the United Arab Emirates globally. There is another initiative by the Abu Dhabi Crown Prince’s Court and the move is also synchronized with that.

The policy of introducing hybrid cars aims to save properties and lives and the basic aim is to preserve the environment and natural resources. The occupational health and safety standards (OHS) will also be improved and modern technology is applied to lessen the noise pollution created by various modes of transport.

A positive message is transferred by this move to both public and private sectors and to foreign visitors about the sincere efforts by UAE in order to protect and conserve the environment and natural resources and to adopt the sustainable development principles.

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.

Sponsorship of Dubai Shopping Festival 2010 Announced by Al Rostamani Group

The Al Rostamani Group is one of the most prominent and leading business entities in the Middle East region which has once again set the sponsorship of the shopping festival in Dubai this year in 2010. The shopping festival this year will celebrate its fifth edition. Since 1997, this group has been a key sponsor and it is one of the oldest business units in the United Arab Emirates. The group was founded by in 1957 by the Chairman Abdulla Hassan Al Rostamani and has steadily grown over last 50 years.

The group has diversified their portfolio in terms of business including heavy equipment, trading, foreign exchange, travel, infrastructure development, IT services, telecommunications and a lot more. The Chairman of the Al Rostamani Group Mr. Marwan Abdulla Al Rostamani said, “Dubai Shopping Festival, launched in 1996 through the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, was an exceptional initiative to enhance the economy in general and the retail and tourism sectors in particular. Over the years, this initiative has marked many milestones to become one of the recognized festivals in the world.”  

The Rostamani Group has become successful due to their joint ventures, capability to build longstanding alliances and with license agreements with worldwide organizations including Renault, Tata, Blue, Avaya, Suzuki to name a few. These relationships have been carefully carried out since then keeping in mind their relationships with the people in the UAE. The Chairman of the group further said, “Al Rostamani Group’s sponsorship of DSF is part of our continued commitment towards this unique event, supporting the government’s initiative in positioning Dubai as a leading city in the world today.”

With an employee base of about 4000 the group fosters and the diversity is strengthened and spread across the globe.

World’s First Armani Hotel to Open in March, 2010 in Dubai

This would be the first hotel in Dubai to open under the collaboration between Emaar Properties PJSC and Giorgio Armani S.p.A. The hotel will exclusively be housed in the unique Burj Dubai tower which itself is the world’s tallest building and it will be launched officially on March 18, 2010. The launch of this Armani hotel has been recently announced. This Armani hotel in Dubai will be the first in the series of resorts, hotels and residences which are designed by Giorgio Armani.

These hotels and residence places will be opened around the globe thus, marking the debut of the fashion maestro Giorgio Armani in the hospitality industry. These hotels will deliver highest standards of luxury and excellence and his Dubai hotel will be the most exclusive destination within the city. The opening of this hotel in Dubai will be followed by the launch of the Armani Hotel Milano. Other than the hotel, various other projects are there which are underway. It includes first ever Armani Residences villas, planned for Marassi in Egypt and secondly first Armani Resort, planned for Marrakeck.

Apart from these, gradually the Armani residences, hotels and resorts will subsequently open in almost all important international destinations including Shanghai, New York, London and Tokyo. The Armani Hotels & Resorts was established in the year 2005 with an objective to construct and operate an exclusive chain of resorts, residences and hotels across the globe especially in the world’s most important holiday destinations and cities. Within the next ten years, the Armani Hotels & Resorts are planning to open at least ten resorts and hotels, thus delivering world class and high quality services and hospitality. Moreover, online bookings for the Armani Hotel Dubai will go live late January 2010 and the prospective visitors can register online.

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.

Dubai World Episode Gives Boost to Investor’s Confidence

According to investment bankers at Shuaa Capital, the confidence in the air has built up amongst the investors around the Gulf region. They optimistically predict the region’s economic condition would take its stride towards the rising end in the next six months. One of the leading investment bank in UAE, Shauaa Capital submitted its December GCC investor sentiment report which reflected the fall in investors confidence due the reconstruction of the debt on 25^th Nov’09 by Dubai World. But, positivity has returned after reimbursement of $4.1 billion by Sukuk by Nakheel, PJSC. It is observed, since then there has been a turn around in the market sentiment since the debt announcement of Dubai World was made in November.

Dubai World and its creditors have met to reconstruct the maturing liabilities worth $22 billion, where the final plan would be submitted, in early January, to the lender. There was a speculation over Government’s support to help the distressed firms. Shuaa Capital conducted couple of surveys. One was before Nakheel Sukuk’s repayment and one was after the dues were settled. The Shuaa report revealed progress in GCC economic conditions over the next 6 months after Nakheel’s repayment. The polls show more investors are expected to invest in GCC market and BRIC in the next six months. It is estimated the regional stock market would generate gains in the coming 6 months, where the biggest rise is expected in Abu Dhabi which was projected by 35.5% of investors, 12.9% for Dubai and 13.1% for Nasdaq Dubai.

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.

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.

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 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.

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.

Brainstorming Week Inspires Entrepreneurs in Dubai

The property investors who are thinking of buying and investing in Dubai may find some innovative options in Dubai real estate market in future due to the new cohort of developers.

The first time in Dubai Global Entrepreneurship Week has been hosted by Mohammed Bin Rashid Establishment for SME Development from 16^th to 22^nd November 2009.

The brainstorming events of the week brought together the young people from different parts of the region. The students also got the opportunity to investigate the creative and innovative ideas. Moreover, the week added an inspiration though talks and debates.

The initiative aims at creating some of the best entrepreneurs of the years to come. These prospects could help in creating some deep-seated new designers, architects and construction experts. Consequently, this may enhance the region’s property industry and make buying in Dubai even more exciting in future.
"The Global Entrepreneurship Week highlights our commitment to incubating young talent and supporting their creative ideas, and thus help establish leading projects in the future," His Excellency Abdul Baset Al Janahi, chief executive of the Mohammed Bin Rashid Establishment for SME Development said.

A major conference was also held with the purpose to consider the future of the region’s construction industry.

It was confirmed by the two-day event that the real estate in Dubai sustains to be a crucial part of the region’s economy and the construction industry. It also indicated that the industry is surely committed and ensures the region’s growth.

Government and partner organizations based throughout the globe hosted events like invention competition and local entrepreneurship summits. These were designed to inspire, unite, mentor and engage the next generation of entrepreneurs.

The growing movement was relished by millions of young people from all around the world with the aim to think big, turn ideas into reality and make their mark.

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.

Global Investors’ Gaze at Dubai Real Estate Again

With the real estate prices gradually coming on track, the investments in Dubai real estate are being much talked about by the global investors. Due to the weakening of the clutch of recession all around the world, these investors are looking forward to the market going towards reasonable scenario.

Tej Kohli, a real estate investor and founder of Ozone Real Estate commented, “The latest results from the Dubai House Price Index from Colliers indicate that real estate prices in Dubai have grown almost seven percent during the third quarter of the year from the previous quarter”.

He also added that the results are a fair indication of tremendous recovery and also signalize a bounce in the market.

Kohli confirms, “The stability in property prices is set to be steady from this point on, given the fact that real estate prices are moving to more reasonable levels. The best indication about the Colliers report is that transactions Increased by 64 percent during the third quarter, due to relative stability in prices and affordable housing. Moreover, the growing property boom will be further strengthened by a series of new launches and openings within the emirate, the report said.”
Kohli also pointed out that world’s tallest tower Rose Rayhaan will also witness a gala inauguration by the mid of December followed by the reopening of five-star hotel Jebel Ali Golf Resort and Spa.

The first quarter of next year will also welcome the opening of high profile hotels The Conrad Hotel and Ritz Carlton along with a series of other projects including new airport.

Further the opening of crescent shaped The Palm Jumeirah Royal Amwaj Resort & Spa, Jumeirah Golf Estate, Dubai International Airport and Tigerwoods’ Al Ruwaya Resort are also entering into the shoes of development in 2010.

The swerves of launches show that Dubai is moving fine on track. Kohli concluded by appreciating the rise of global tourism by 4% as compared to same period last year.

Dubai Villa Stock Welcomes the New Handovers

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

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

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

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

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

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

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

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

Gazumping- A New Way to Force Up Prices

The premium Dubai properties are pushing up sale price after the settlement of the final figure with the buyer. The practice popularly known as “Gazumping” has given way to the price rise of around 15% as reported by real estate agents.

The term was first heard of in UK in 1980s and early 1990 when property prices were jaunty. Gazuming often results in the loss of money, spent on pre-approved mortgages, for the original buyer .It involves a seller withdrawing of an agreed sale after accepting a second higher offer.

"In the last month, we have seen sellers of high-quality units failing to honor their commitments.Eight or nine of our high-value deals have gone sour. In most of the cases the owners randomly increased prices by eight to 15 per cent,” told Parvees Gafur, Executive Vice-President of Sales.

"There have been cases in the past few months where the seller has increased the price by 10 to 15 per cent. But none of our deals have gone bad since we had other listings in the particular area", added Vineet Kumar, Asteco's Head of Sales in Dubai.

Saeed Mirsaeedi, Investment Manager at Sherwoods Independent Property Consultants, said: "We have seen instances where the seller has increased the sale price after listing at a certain price. They have also been removing their listing in order to wait for the market to recover rather than sell at a lower price."

Gafur said, “ There was a shortage of high-quality finished units and as a result sellers were listing their properties with a more than one agent. In most of the cases property owners do not give a written commitment to sell a unit at a particular price.”

"A seller gives a verbal commitment of the price at which he is ready to sell. We then take about three to four days to find a buyer. During this period the seller goes to other agents who may say they can obtain a higher price, and so when we contact him with a buyer, he rejects the offer," said Gafur.

Revision of Rent Laws by Emir

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

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

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

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

Landlord's Perspective:

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

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

Dubai introduces special property contract

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

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

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

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

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

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

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

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

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

Hydra Village Investors Served Legal Threats

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

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

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

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

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