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.

Infrastructure Work going on at Business Bay Development in Dubai

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

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

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

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

For Foreign Direct Investment - Dubai on Top in 2008

A special report has been published on Foreign Direct Investment (FDI) by the Financial Times. In this report it’s for the first time that Dubai has been classified as the top destination in the world. The likes of Shanghai and London are kept aside and Dubai has come up as a great destination city. Dubai’s position is now known, as the top destination city, it has attracted 342 projects and around 58,000 new jobs were created in the year 2008. A capital investment of $21bn has been made and for FDI, UAE once again has become the leading destination with 480 projects in hand.

The Governor of Dubai International Financial Centre and Vice Chairman of the Central Bank of the UAE, His Excellency Dr. Omar Bin Sulaiman commented on the report by saying that “The number of projects initiated, the capital investment and jobs created in the UAE are proof of the economic strength of the country." If we look at the complete Middle East, the sources shows that the total projects of 969 were assigned with the capital expenditure of $154bn. His Excellency Dr. Omar Bin Sulaiman said: “This report is a testament to the strategy of both the UAE and Dubai under the directives of HH Sheikh khlaifa bin Zayed Al Nahyan, President of the UAE and HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai; a strategy of openness and diversification”.

All this is said to be a remarkable achievement by one of the well known emirates in the UAE, Dubai. He added that this achievement by Dubai of becoming the foremost city for foreign direct investment will be continued to demonstrate the benefit of investing in UAE and Dubai.