GCC Investors show Powerful Stance in the Property Community Across the World

In a survey by global market research company YouGov, the UAE and Dubai real estate property sector’s position is stronger than ever. The survey showed that 60% of investors are expecting the dubai’s real estate market to become even more vibrant in the next 12 months.

The same survey also indicated that half of home buyers (54%) are eager with regards to the Dubai real estate industry’s growth, or three-fifths (58%) thinks that there will be an increase in sales and rental prices over the next year. These numbers indicate towards a buoyancy in the UAE and Dubai real estate market.

These numbers emerge as an anticipation to an influx of thousands of real estate property investors for the Cityscape Global, one of Middle East’s largest real estate property event.  The event will be held in Dubai World Trade Centre from 8 – 10 September, where over a hundred local developers will participate in the 14th edition of the event to showcase their latest projects.

YouGov’s survey reveals just how location is an important factor for investors in choosing real estate properties to purchase in the Emirates. With a sample size of 861 UAE residents, the survey showed that the most attractive and in-demand real estate are the ones near public transportation (56%), the ones close to grocery stores (44%), shopping malls (41%), and then Mosques (37%).

Mounted specifically for Informa, the organizers of Cityscape Global, the study went on to reveal that studios and one-bedroom apartments are becoming the most preferred type when choosing what property to buy. This lead investors into diversifying their developments to offer smaller, more affordable residential options.

Emirates NBD, together with Abu Dhabi Commercial Bank, First Gulf Bank, Commercial Bank of Dubai and National Bank of Abu Dhabi will offer competitive mortgage rates and professional advice at Cityscape Global.

Lara Al Barazi, YouGov’s Head of Real Estate Research said: “The study highlights positive sentiment across the board. Investors, potential home buyers as well as real estate professionals are expecting growth to continue in the Dubai real estate market in the coming year. The most positive news is the extent of trust investors place in the residential property market, which reveals the high potential this sector has and the importance of understanding what appeals most amongst prospective buyers.”

With more than 300 exhibitors to showcase from around the world, Cityscape Global had to get two additional exhibition halls – 4 more halls since 2013 – beefing up its total exhibition space to 40,00sqm.

Also, this year’s Cityscape Global takes on a new format, where the conference will be staged a day before the exhibition at Conrad Hotel Dubai.

YouGove will exclusively present their findings from a study made with 1,500 UAE Real Estate Market Sentiment, putting its vision at the future or investors, real estate professionals, and potential home buyers at the morning conference.

The new format will now facilitate more than 800 senior real estate professionals and government officials. They will look at more opportunities and find key solutions to challenges that may hamper the industry’s growth.

The Cityscape Awards for Emerging Markets will also run parallel with the exhibition, where the programme will attract hundreds of award entries from developers and architects behind such developments across emerging markets throughout the world. The winners will be declared at an elaborate ceremony at Conrad Hotel on 8 September.

Cityscape Global 2015 returns with support from Dubai Land Department and Foundation Partners: Emaar Properties, Dubai Properties and Nakheel; Gold Sponsors: Arma Properties; Garanti Koza and Al Marjan Island; Silver Sponsor Sobha LLC; District Operator Sponsor: Ejadah Asset Management; Project Marketing Sponsor: Aqua Properties and Property Registration Trustee Partner: Tamleek Property Transfer.

Dubai Properties Will Unveil Lavish “1/JBR” at Cityscape Global 2015

A new luxury tower will be gracing the Jumeirah Beach Residence skyline: The 1/JBR. This new property will offer high end living with unrivalled sea views. Located at the entrance of Jumeirah Beach Residence (JBR), the iconic tower development offers unparalleled luxury and indulgent living with every apartment offering panoramic sea views.

Dubai Properties (DP), leading Dubai real estate master developer and asset manager known for renowned destinations across the Emirate, announced today that it will unveil its new luxurious development, 1/JBR, at Cityscape Global 2015, which will be held 8-10 September 2015, at the Dubai World Trade Centre.

JBR is renowned for its stunning beachfront setting. With a promenade that stretches 1.7 km overlooking the Arabian Gulf, JBR is a hugely popular tourist destination welcoming over 12 million visitors in 2014.

Abdullatif AlMulla, Group CEO of Dubai Properties Group, said: “Dubai Properties is introducing 1/JBR, a unique, urban residence concept, set to become the crème de la crème of high-end residences. It offers the bespoke 5-star luxury amenities Dubai is known for, at one of the most sought after destinations in the country.”

“1/JBR will appeal to discerning local, regional and international investors, who are looking for the highest specification residences in one of the most vibrant destinations in the country. 1/JBR redefines the concept of elegant living.”

1/JBR fuses both contemporary and classic architectural and design features in a modern, understated and elegant manner. 2-to 4-bedroom apartments and 5-bedroom penthouses have exquisitely crafted interiors. All residences within 1/JBR have a unique glass façade and wide sundecks to further amplify the distinctive tower location on the Arabian shores with panoramic sea views. The tower enjoys private access, with no more than three to four residences per elevator lobby, and penthouses on the top two levels. Selected residences include provision upgrades for private pools.

The completion and delivery of this unique project is set for early 2019. Interested buyers are invited to register at Dubai Properties’ stand at Cityscape Global 2015.

What the Law States about Real Estate Brokerage in Dubai

The real estate brokerage process now occupies an important sector, in which major companies with highly specialized technology, connections, and manpower has been in full effect. With an influence ever increasing, real estate brokerage cannot be helped but be put under the limelight in order to be governed by specific laws and regulations, especially with some bad ire directed on them recently.

The has always been a provision under the law that deals with the Dubai real estate brokerage business. Before 2006, real estate brokerage was organized by the provisions of the Federal Commercial Transactions Law No. (8) of 1984 under Brokerage Contract Chapter. Such provisions are still the referenced in cases not stipulated by private law. However, after 2006, the executive regulation No. 85 of 2006 on the organization of real estate brokers register in the Emirate of Dubai was issued to govern Law No. 7 of 2006 regarding real estate registration in the Emirate of Dubai, and organize a special register for licensed real estate brokers.

This move has been put into place to update the previous provision and at the same time keep up with the changing atmosphere of business in Dubai: the freehold.

This regulation has done well in cutting down unwanted non- licensed brokers from conducting any real estate brokering (Article 3 the Executive of Regulation). Therefore, it uplifted such a vital sector, to a point that it received an increased level of confidence from investors.

Below are the most important duties and obligations of the broker (Articles (14 to 25):

I. General obligations of the broker (Supervisory entity: The department of property and land)

• Commitment to the ethics of the profession (Article 14)
• Commitment to the maintenance of a special register of all transactions held by him (Article 15)
• The broker’s commitment to maintain documents related to sales (Article 15)
• The broker’s commitment to submit all information and documents requested from him (Article 16)
• The broker’s commitment, in case of selling on map, to keep a copy thereof (Article 15)
• The broker’s commitment not to mediate in a transaction in contradiction with law or regulations in force in the Emirate of Dubai deal (Article 18)

II: The broker’s commitments towards the parties of the transaction:

• The broker’s commitment to deliver a carbon copy of the sale documents to contract parties when so requested by any (Article 15)
• The broker’s commitment to inform his client of all details of the negotiations, the stages of mediation and any other necessary information (Article 17)
• The broker’s commitment to inform the other party of all material matters relating to the agreement and which are necessary to deny ignorance, and to inform the two parties of all the circumstances he knows and be responsible before them for any fraud or mistake on his side (Article 17) and Article (19)
• The broker shall be liable for any loss or damage incurred by any of the parties as a result of his work through fraud, deception, without taking into account the norms to be followed or violation of the requirements of the code of conduct (Article 22)
• The broker shall not be entitled to claim commission or to be reimbursed the expenses incurred (if he works for the benefit of the other contracting party in violation of its commitments to his representative, or if he accepts from the other party a promise to obtain a benefit, in circumstances in which the rules of good faith and the code of honor prevent accepting such promise) (Article 23) and this article shall be deemed an application a code of honor.
• If he authorized many brokers to be jointly liable for its work, unless permits them to work individually, (Article 24)
• If he authorizes many people to work as one broker in a joint action, so as to be jointly liable for the implementation of this authorization, unless otherwise agreed, (Article 25)
• The broker’s commitment to be honest with regard to any payments, securities or other things given to him by any of the parties to keep or to deliver to one of the parties, and must execute or deliver according to what is agreed upon and the rules of the Secretariat shall apply to the broker with regard to these matters.This article is important as it relates to the provisions, particularly Article 404 of the Penal Code No. 3 of 1987, which reads: ((Anybody who embezzles or squanders funds, bonds or any other movable money, in a way that causes harm to the rightful owner, when it was handed to him as a deposit, lease, mortgage, borrow, use or agency, shall be punished by imprisonment, fine or both.
• The broker’s commitment not to establish himself as a party to the contract made through it (as he may not be an agent) even if authorized by a contract party, and the penalty resulting from the conclusion of the contract itself shall be depriving him of the commission in spite of being authorized by the party directed him to conclude the brokerage contract (Article 20)This article should be read deliberately and should draw the attention of every real estate broker, as it is among the guarantees granted by the Regulation to the investor, it denies the real estate broker’s right to commission when violating his duties, and prevents the broker to conclude a contract as a party to the contract.As the real estate broker in this case shall not be entitled to any commission, and the clear purpose of the text is a confirmation of restriction being adopted by the legislature in commercial transactions Act, which deprived the broker of taxi brokering whilst being a party to the contract in accordance with the provisions of Article (263) of the Federal Commercial Transactions Law.

Broker Wage

Included in the provisions of articles (26 up to 33), which include the provisions determining the rights and wages of real estate broker set out in the Federal Commercial Transactions Law, the most important of which are:

• For the broker to be entitled to his commission the contract should be in writing, registered and indicates the conditions and the contract shall be referred to in the real estate register (Article 26)
• The broker’s wage shall be determined through agreement, otherwise the norms shall be prevailed (Article 27)
• The broker shall not be entitled to his brokerage fees unless it led to the conclusion of a contract between the two parties, such entitlement shall be based on the conclusion of the contract of sale and registration thereof in the department, unless otherwise provided in the agreement. In case the sale contract is suspended on an agreed upon condition, the real estate broker shall only be entitled to the contract when the condition is achieved (Article 28)
• In case the brokerage contract is terminated, the broker may claim his fees in accordance with the agreement, unless fraud or fatal mistake is proved (Article 29)
• If the broker’s instructions or negotiations did not lead to agreement of the parties, he shall not be entitled to any compensation, expenses or costs incurred, unless the Brokerage contract stipulates otherwise (Article 30)
• If more than one broker is involved in mediation or negotiation for one party, they all share as if one broker and payment shall be divided in accordance with the terms of the contract (Article 31)
• If a party contracted with many brokers independently on one subject, and one of them succeeded to complete the process, he shall be entitled to full payment apart from others (Article 32)
• The broker shall be entitled to fees from the party that authorized him, and if both parties were separately liable for the payment of wages owed to him even if those two parties have agreed – with each other – that one party shall bears the full payment, because their agreement is not an argument as it is from a third party (Adapted from article 33)

Governed by the provisions of articles (34 up to 41) and confined to two parties:

I. The quartet committee formed by the Chairman of Dubai department of territory

(In case of previous or subsequent amicable agreement to resolve the dispute through the committee) in accordance with the provisions of Articles 34 and onwards of the above mentioned Regulations.

II. Dubai Commercial Court of first instance

If there is no such agreement (the previous or subsequent amicable agreement to resolve the dispute by the committee formed at Property and Land Department in Dubai) the exclusive jurisdiction of the Commercial Court of First Instance at Dubai Courts, that has general authority to address the issue in the light of evidence presented, shall remain.

Final Words

It is important to refer to these articles of law, whether you are a real estate broker, an investor, or a developer. This is to ensure that everything done is under the blessing of the law, and the proceeding steps will be done smoothly as possible. We wish these can help shine a light for everyone in need of answers in terms of legal concepts around real estate brokerage.

The Dubai Real Estate Q2 2015 Report

The real estate sector was a major player in the continuing expansion of the economy last year, accounting for 13.3% of GDP—good for third, thanks in part to the Government of Dubai, which strongly contributes to the expansion of many areas that are connected with the real estate sector. Now that we’re more than halfway through this 2015, let’s take a look at the Dubai real estate market for the second quarter of 2015.

Apartments

The Dubai property market for apartments slowed down on the second quarter of 2015, with average apartment sales prices across the city dropping to the same level as in the first quarter of 2014.

The market price “correction” didn’t come as a blindsided surprise to industry experts. When analyzing the volume of transactions, the prices did not keep pace with the expected sales price growth but instead rose at a slower rate. Demand declined slightly in the first quarter and rather more steeply in the second quarter of this year.

However, there were some spots that are still going strong. Average sales prices in Business Bay have actually risen, albeit in a gradual rate over the past few years even though demand has remained constant. The district currently has more than 40 developments currently under construction by various developers, the majority of which are expected to be finished and handed over in 2016 and 2017. Additional developments are currently on the pipeline.

In Downtown Dubai, prices were 19% lower than at the 2014 peak. During the second quarter of this year, demand has been steady and at a healthy level.

Contrary to the two situations above, sales prices in Dubai Marina and Jumeirah Beach Residence (JBR) are declining which causes buyers’ interest to pick up. The same goes with Palm Jumeirah. Sales prices are 12.5% lower than at 2014 peak. There are 20 projects currently are under development on the island with more at planning stage.

Villas

Sales prices of villas have been falling for the third quarter in a row, since late 2014 to date. However, buyers’ sentiment has picked up due to the continued fall of prices. As a result, the number of transactions recorded in the villa segment has started to rise again.

Following the general trend across the emirate, the volume of transactions of prime villas in high-end developments within the Jumeirah Park, Jumeirah Islands, Emirates Hills and Arabian Ranches communities has kept increasing since late 2014. Prices in the first three areas declined in the second quarter, while sales prices at Arabian Ranches’ rose by 5%.

Among these prime communities, Arabian Ranches supply is the highest with more than 4,000 villas. The community is also the fastest growing. By 2018 Emaar, the developer will deliver nearly 2,500 new homes including the Mira Oasis, Lila, Azalea and Samara Rosa, and Rasha Villas sites.

SOURCE: Roots Land Real Estate

Was the Forecast for the 2015 Real Estate Market Correct?

The real estate market in Abu Dhabi has experienced an optimistic recovery from the worldwide economic downturn. For the past two years, the reports have yielded positive numbers, indicating a maturing health in the Abu Dhabi real estate sector. Last year, sales growth in real estate has seen a double digit rate increase. Villa sales prices rose by 16% and apartments up 15%. Rent rates increased by 10%, and 9% for apartments, villas respectively—a trend expected to continue until 2015.

Were they right?

In the latest real estate performance reports, the second quarter of 2015 saw an encore performance across all asset classes, although it wasn’t a repeat. The growth of demand has slowed down this year due to the sluggish performance oil sector, UAE’s primary trade commodity. This has lead to a reduction in government spending and sentiment, which affected the real estate market and others. While short term supply and demand remains above the line, the continuing growth of this particular sector depends on the government spending plans.

For the Residential Sales market, while prices have remained stable over 2015, there has been a slide in transaction volumes, although developers are still generally successful with new product launches. Residential Rents have remained stable this quarter due to limited demand.

Office space demand remains stagnant, again due to the slowdown in the oil sector and government infrastructure investment. In spite of this, Grade A office rentals have remained stable due to minimal vacancies in quality projects. However, office completions in tow throughout the year are expected to increase the market-wide vacancy rate.

Retail rentals remains stable this quarter and this is expected to continue in the short-term. A number of Super Regional malls are set to enter the market on 2018, which will partly be supported by new population and tourism growth.

The Hospitality market witnessed solid growth in hotel guests above 2014 levels driven by wide ranging initiatives to grow the tourism sector. ADRs have also registered an increase of 4% in YT May compared to the same period in 2014. Hotel occupancies registered 77% in YT May reaching the same levels as 2014.

SOURCE: Roots Land Real Estate

Dubai Real Estate Development Legal Requirements

These are what you need to know about Dubai Real Estate Development Legal Requirements.

Real Estate Licenses 

Licenses are needed in order to proceed with a real estate development project. This is the first rule in real estate development before any developer can proceed with even making a property available for sale.

Article (3) of Real Estate Development Escrow Account Act (8) of 2007 stipulates that the provisions of this law apply to those who sell units off-plan and receive payments from purchasers. Further, Article (4) emphasizes that no developer may engage in such business, advertise in local or foreign media or participate in exhibition for promoting real estate units or properties sold off-plan unless it is registered in and licensed by the Land Department in Dubai represented by its director general.

Article (7) of the Act stipulates in relation to the real estate escrow account that any developer who wishes to sell units off-plan must submit a request to open an Escrow Account and attach the following documents:

(1) A certificate of membership in the Dubai Chamber of Commerce and Industry;

(2) Trade license;

(3) Title deed of the plot to be developed;

(4) A copy of the contract concluded between the master developer and the sub-developer;

(5) The initial architectural designs and engineering drawings approved by the Competent Entities and the master developer;

(6) A financial statement of the estimated cost and revenues of the project approved by a certified chartered auditor;

(7) An undertaking by the sub-developer to start the construction works of the project upon having obtained the approval of the master developer for off-plan sale, or an undertaking by the master developer if there is no sub-developer; and

(8) A standard sale contract between the Developer and the purchaser.

Without these opening the escrow account that shall be accompanied by an agreement made in writing between the real estate developer and the escrow (the bank in which the payments made by purchasers of units sold off-plan or by the financiers of the project are deposited) is impossible.

Real Estate Developer’s Obligation

Real estate developers need to be able to deliver the property they applied a license for, especially with the investor’s money on the line. But any delays in the performance of their obligations to complete the project, while an inconvenience, is very understandable and an expected risk. One cause of delay is the fulfillment of requirements. These include the approvals to be obtained from governmental bodies and the duties of the developer, the main contractor, and subcontractors.

The review of the real estate law indicates the cases where the real estate developer is deemed in default in the completion of the project, Article (21) of the Executive Council Resolution No (6) of 2010 approving the Executive Regulations of Law No (13) of 2008 Regulating the Interim Real Estate Register in Dubai expressly states the reasons deemed beyond the reasonable control of the real estate developer, as follows:

(1) If the plot where the project is to be constructed is expropriated.

(2) If a government body has frozen the project for re-planning reasons.

(3) If a building remains or manuscripts are discovered within the site of the project.

(4) If the Master Developer makes alterations to the project site entailing the alteration of the project boundaries and area in a manner affecting the performance of the sub-developer’s obligations.

(5) Any other grounds to be estimated by the Agency. 

Strict Penalties for Violations

Accordingly, the lawmaker has ensured the proper guarantees for both investors and banks. In this regard, Article (16) of the Real Estate Development Escrow Account Act (8) of 2007 stipulates that without prejudice to any penalties stipulated by any other legislation, an imprisonment sentence and a fine of at least one hundred thousand Dirhams (AED 100,000), or either penalty, shall be imposed on those who:

(1) Engage in Real Estate Development activity in the Emirate without a license;

(2) Provide the Competent Entities with incorrect documentation or information in order to obtain a license to practice the Real Estate Development activity;

(3) Knowingly offer for sale Units in fraudulent Real Estate Development projects;

(4) Steal, appropriate, or forfeit any amounts of money delivered to them for the purpose of implementing Real Estate Development projects;

(5)As for auditors, deliberately preparing a fraudulent report upon auditing the financial standing of the Developer or deliberately failing to disclose material facts in their report;

(6) In the case of consultants, knowingly certifying fraudulent reports on a Real Estate Development project; or

(7) In the case of Developers, dealing with a real estate broker who is not registered on the Real Estate Brokers Register maintained by the Department in accordance with Bylaw No. (85) of 2006 concerning the Real Estate Brokers Register in the Emirate of Dubai.

Furthermore, Article (17) stipulates that the real estate developer shall be de-registered and punished with penalties set forth in Article (16) in the cases where:

(1) It is declared bankrupt;

(2) It fails, without an acceptable reason, to commence construction works after the lapse of six (6) months from the date on which he was granted permission to sell Units off-plan (as may be estimated by the Land Department in Dubai);

(3) The license granted to the Developer by the licensing entity is revoked;

(4) It commits any of the violations stipulated in items 2, 3, 4 and 5 of Article (16) of this Act; or

(5) It violates any of the laws and bylaws regulating the activity of Real Estate Development in the Emirate.

Source: Roots Land Real Estate

Dubai Property Market Update - Dubai Properties

The Dubai real estate sector and the UAE have experienced progress during the last few years, and we have seen this continue to 2014. The industry has developed in terms of best practice, regulations and laws to protect investors and developers. Improvements on the mortgage regulations have made a positive contribution to ensuring a controlled and sustainable market growth.
      
The latest industry reports have seen a gradual pace in price growth, which means that these developments are effective and have positively impacted the market behaviour.

From the perspective of Dubai Properties, the market has been in a favorable position and strategies have allowed them to experience sustainable growth across their portfolio in 2014.

They have seen strong demand from investors for the new residential project, Dubai Wharf, that was launched at Cityscape. In addition, other Dubai Property developments have sold-out and prompted the release of further units such as in Mudon and Remraam. 

They believe that 2014 will be remembered as a successful year for the real estate market, and for Dubai Properties in particular. Their strong sales has been a clear indication of the positive market conditions, and successful strategy to develop practical, high quality, and sustainable projects in every segment and area of Dubai that offer essential amenities and facilities to enrich the lives of residents and end users.

Dubai Property has already made over 36,000 residential units, 2.8 million sq. ft. of office space and over 1.2 million sq. ft. of retail space across key areas of Dubai. The main projects we have launched in 2014 include: Mudon, Remraam, Manazel AlKhor, and Dubai Wharf, some of which experienced successes.

Dubai Properties will continue to develop a growing portfolio of retail, commercial, residential, hospitality and mixed-use projects, and they have a strong pipeline of projects across all sectors that are tailored to meet the needs of real estate investors in the region. They will continue to align their business with the current market demand by launching new projects that provide strong investment opportunities.

Collectively, the real estate in Dubai is continuously experiencing strong growth with investors looking for ‘value for money’ projects across the city with completed infrastructure, accessibility and quality building and finishing. Our projects will continue to meet this market demand in line with Dubai’s growth across the residential, commercial & retail sectors while continuing with the strategy to develop projects in prime locations of Dubai.

Winning the Expo 2020 presents a huge opportunity for Dubai real estate industry, and as a leading developer with a wide range of projects in every segment and area of Dubai, we are well placed to capitalize on the increasing requirements which this will bring. 

Going forwards, we plan to launch more projects that cater to the increasing population expected in Dubai over the coming years, from affordable apartments to villas and townhouses and high-end luxury accommodation across key areas of Dubai.

Source: Roots Land Real Estate

The Future Of Dubai Retail Market - JLL

The retail market in Dubai began modestly in the 1990s with Burjuman, Al Ghurair Centre and Deira City Centre being the prominent malls. From that time the retail market has progressed significantly; and today Dubai is home to some of the world’s best malls such as Dubai Mall and Mall of the Emirates and other impressive developments to make what we call Dubai today.

It has been a long journey from the souks of old Dubai to international standard super regional malls, and the way this transition has been managed has brought Dubai into the spotlight of retail development globally. Today, Dubai’s retail landscape is undergoing another transition, this time from standard malls to more innovative and creative retail developments that aim to encapsulate the entertainment, leisure, shopping, and gastronomic experiences. Some examples of these more innovative retail concepts are The Beach by Meraas, and the recently announced Mall of the World and Dubai Canal developments. The extension strategy for Citywalk is another example, where trendy box retail, the first of its kind in Dubai, is under construction.

Existing retail developments are witnessing this evolution and many have chosen to upgrade their malls to meet the coming competitive challenges. Burjuman Centre and Wafi Mall are repositioning while Mall of the Emirates, Dubai Mall and Ibn Battuta Mall has expansion strategies in place to accommodate the increasing and evolving retail demand.

This change is not just limited to mega retail projects but can also be seen with community sized retail popping up in proximity to major residential communities to provide consumers with shopping ease, a sense of community and quick access to goods that serve their everyday needs. The Mall in Jumeirah is a perfect example of an upcoming upscale community centre that is aiming to fill this gap in the market.

As developers gain insight into the consumer mind they understand that providing the right experience in terms of the five senses, customer service, ambience and decor are just as crucial for customers as the accessibility, parking, location and tenant mix.

Developers will also be forced to distinguish themselves and add character to their retail projects to create their own place in the market.  They need to attract tourists worldwide and increase retail spend. 

The government of UAE works to promote UAE’s image as a stimulating destination globally by providing enriching experiences, including the impressive display of fireworks every year at Burj Khalifa on New Year’s Eve, the hosting of Expo 2020 and Formula One. Dubai has also uniquely succeeded in bringing a piece of every country into its own city through Global Village, which displays merchandise from around the world, creating a one stop shop for tourists to see and purchase a variety of international products in one place. Additionally attractive sales such as the Dubai Shopping Festival and Dubai Summer Surprises occur annually to further attract retail spend from around the world, especially from other Middle Eastern countries.

JLL’s interaction with prominent regional real estate clients has given us insight into initiatives they are taking to be on the forefront of innovation. In this new age where consumers hold the power and where change is the only constant, we expect to see in the real estate in Dubai aiming to further outdo itself and competitively execute projects that thrill and excite.

Source: Roots Land Real Estate

Real Estate Market in Dubai

Dubai is the seventh emirate, United Arab Emirates, which is the second area, after Abu Dhabi. Most sales of products in Dubai real estate and tourism. This is one reason that most people want to invest in real estate in Dubai to make contracts and return large profits. real estate projects in Dubai is just fascinating and the central attraction for visitors. The climate in Dubai is too dry, is a perfect opportunity for brokers to invest in.

Opportunities for Buyers

Several options are available to buyers in Dubai, the real estate market offers a wide range of people. Houses, apartments, villas, and more, buyers have a great selection to choose something that meets your needs and tastes. Buyers who think that the Dubai property investment needs of the market and identify the various features to get what you want an incredibly low price. The best part is that people can easily get the property when convenient, without worrying about additional charges.

Opportunities for Investors

As buyers, investors can also help to invest in the property market in Dubai. There are many opportunities for investors who can buy products at reasonable prices and sell at prices that have managed to create huge profits. properties in Dubai have helped many people to earn huge profits from their properties and take full advantage of the market. Everything you need to remember is associated laws are essential, especially when selling or buying property. If you're new to the real estate market, real estate agents, so real can greatly aid in the management of procedures, legal liabilities and other claims.

Chinese businessmen hit by Dubai property crisis

When many mega-structures, including the world's tallest building Dubai Tower, kept on rising from the sands in the Middle East, Chinese investor's confidence was sky high on Dubai property market as well.

But one body was going verby memory, if the trust was humiliated by a debt crunch that pricking property bubbles in the emirate.

"Investing in real estate was quite popular among Chinese male sake in Dubai for a long time. Nobody expects eiendom mark would tumble: the owner price rose only to about 20,000 to 30,000 Yuan a square meter in the emirate by beneficiaries border investors," said Chen Zhiyuan , Director of Wenzhou Chinese Chamber of Commerce in Dubai.

Speculation in property is actually quite profitable for the bubble bars, Wang said.

"The money delivered faster than the traditional business and thus attract increasing hot money," Wang said.

He said Chinese investors have bought one or two woonstelle usually on the first, then the profits drove them to join hands and an entire floor or building to purchase.

Take Wenzhou investors example, they usually vasgespyker down investment in a dinee, on which project to invest and how much to invest, said Wang.

Wenzhou, in east China's Zhejiang Province, is known for its migrants who left their native country to do business Oorsee, with a reputation for entrepreneurial start restaurants, retail and wholesale businesses Oorsee.

Most investors believe that the crisis in Dubai real estate sound the alarm bell for China real estate market.

"China's eiendom mark the legs almost at the same time as Dubai's, but at a rate much higher than Dubai in the past ten years," Chen said.

In many Chinese cities first, generally flat price 30,000 Yuan in the core areas exceeded, Chen said.

Feng Fei, director of the Unit Ministry Navorsing Bedryf economy in the Center for Development of the State Council, said China must now bubbles in property and equity markets amid the current liquidity looks rich capital.

Despite the investment losses in eiendom, Chinese sake manne reported little impact from Dubai debt misery in other sectors.

"The crisis was mainly caused by the debt misery 'mega-projects and the exodus of foreign investment, property and financial services hits hard. Imports and exports of Dubai is not serious hit," says Fang Xiaoqiang, general manager of Longfei Import and Export limited company based in Yiwu, Zhejiang Province.

Chen Fang's considered response, saying that only those who borrowed too highly spekuleer with large property losses, and most Chinese sake masculine feel happy if they only spared a proportion of capital to property investment and not with their main businesses.

Hu Bin, CEO of Shanghai Zhou Zhong International Group company, is investing 28 million U.S. dollars of an artificial island in Dubai in 2007 purchase.

Construction of the island, with 1.2 billion Yuan of investment, is scheduled for completion in 2010, but geskors after the global financial crisis, Hu said.

"This is normal for men suffering sake crisis. The Dubai World debt crunch this time is not as devastating as the global financial crisis last year," Hu said.

Despite many uncertainties surrounding the majority of Chinese investors in Dubai is confident the future and the restoration of its property market, "Chen said.

Dubai PE firm raised $375 million for real estate and small business funding

Abraaj Capital, a Private Equity firm in the Middle East, announced that it has completed a $375 million capital increase to existing shareholders, which increases the company's paid-in capital to US$ 1.5 billion.

According to the FT, Abraaj will focus on real estate and small businesses, as well as trying to acquire an overseas competitor looking to raise its regional exposure.

Their full press release follows:

Abraaj Capital Holdings Limited (the parent entity for the Abraaj Group and its associated funds) announces that it has completed a US$ 375 million capital increase to existing shareholders, strengthening its balance sheet to capitalise on strategic buying opportunities, expand its geographic and product coverage, and consolidate its market-leading position.

The rights issue which increases the company's paid-in capital to US$ 1.5 billion was fully subscribed, demonstrating strong confidence in and commitment to both Abraaj Capital and the investment opportunity in the Middle East, North Africa and South Asia (MENASA). Abraaj is the region's largest private equity group.

Use of the proceeds will include seeding new funds to take advantage of an attractive investment environment, as well as possibly executing strategic opportunities for Abraaj itself to expand its sphere of operations. This will also help accelerate and enhance long-term shareholder value by protecting some of the unlocked value in the balance sheet.

Sheikh Abdulrahman al Turki, Chairman of Abraaj Capital Holdings Limited, said: "This initiative will enhance value for all Abraaj shareholders and allow the firm to consummate opportunities in an expedient manner and at an interesting price-point in the cycle, while also retaining the option to position itself for a successful liquidity event in the future."

"The success of the rights issue, with its focus on raising strategic capital, stands in contrast to the current global fundraising environment. On a consolidated basis, the investment portfolio of the funds Abraaj manages is healthy on account of robust performance of our portfolio companies. Most of these operate in defensive or growth-oriented industries that are less impacted by the recession."

Arif Naqvi, Founder and Group CEO of Abraaj Capital Holdings Limited, added: "Abraaj Capital has widened its lead as the top private equity firm in the region. As a result of our investment in our people and processes, not only is the short-term impact of the global downturn minimal on us, the long-term prospects for our business are probably better than at any point in the past. The economic environment has resulted in interesting opportunities. Asset prices are more reasonable, aspiring regional and global competition has largely retreated, and consolidation opportunities, both for our firm and our portfolio companies, are available."

About Abraaj Capital: Dubai-based Abraaj Capital is the largest private equity group in the Middle East, North Africa and South Asia (MENASA). Since inception in 2002, it has raised about US$ 7 billion and distributed almost US$ 3 billion to investors. It has made more than 35 investments in 11 countries and exited 20. The group operates offices in five countries, including Saudi Arabia, Egypt and Turkey. About 155 people work in Abraaj, including around 75 world-class investment professionals. Abraaj has holdings in some 25 companies, including some of the region's most prominent, such as Air Arabia, the region's biggest low-cost carrier; Acibadem Healthcare Group, Turkey's biggest privately owned operator of premium hospitals; and Al Borg, the Middle East's biggest medical-testing laboratory company. Abraaj has won several international awards, including 'Middle Eastern Private Equity Firm of the Year' from London-based Private Equity International four years in a row. Abraaj Capital Ltd., a member of the Abraaj Capital group, is licensed by the Dubai Financial Services Authority, while the group is also an associate member of the European Venture Capital Association. Abraaj's commitments to Corporate Social Responsibility include a US$ 10 million educational trust fund for Palestinian children who lost parents during conflict in Gaza in December 2008 and January 2009. The Abraaj Capital Art Prize, the world's most generous art prize, is designed to support artists from the MENASA region.

Source: dubaibeat.com

Buy Property in Dubai

For the global investors, Dubai has become the hottest place to invest in. Dubai is a land of promise with its Amazing developments and projects that have captured the attention of the investor world wide. To give impetus to this already building excitement was the implication of the May 2002 law that facilitated the Dubai property by foreigners.

There is approximately $901 billion that has been invested in the property of Dubai some of which are complete while others which are in its developing stages. With this kind of massive investments, the Dubai real estate market is beckoning investors far and wide. Dubai is the investor’s paradise, here the investors are spoilt for choice, and Dubai offers the ideal environment to buy property. Here you can╚ invest in towering buildings to beach villas to restaurants, you name it and you have it. Such is the lure of Dubai that it has attracted several star celebrities such as the soccer star David Beckham and his posh wife Victoria and also the likes of Rod Stewart and Michael Jackson.

It is untrue that only elite class can buy property in Dubai. In fact there are locals of the emirates who are increasingly buying property instead of paying exorbitant rent to the landlords. Due to the rise in real estate inves◘tment there has been a major increase in the number of real estate agents and dealers who are having a flourishing business.

In Dubai the mortgage market is still in its nascent stages, but there are other schemes of payments available that aid property buyers in Dubai. The city is pulsating with the kind of energy that its real estate market is hav♀ing. If you invest in the real estate market you are guaranteed to emerge as a winner. You may either choose to sell your property or rent it, no matter what you choose high returns areΘ on the card. You can also buy a holiday home in Dubai for there is no other place in the world where you can get the kind of luxury that Dubai offers.

The rent in Dubai is steadily increasing, but this shouldn’t be taken as the norm, as very little of the property has actually been developed others are still in their development stage. While Dubai is witnessing a construction boom, the boom is skewed, █it pays more attention towards the development of villas and luxury resorts leaving out the home for poorer section and the labor class.

Another problem that is common is the bad traffic conditions that prevail here. But hopefully with the development of monorail much of the pain will be eased.

ETA Star organises an interactive forum for the owners and residents of Palladium

ETA Star Properties recently organized an Annual General Body Meeting for the residents of Palladium, located in Jumeirah Lake Towers. The unique forum provided the residents of Palladium a platform to interact with the senior management of ETA Star and share and discuss their issues. The meeting was attended by residents, home owners of Palladium and senior officials from ETA Star Properties.

The Palladium were the first property to be delivered in the waterfront community.

Speaking on the occasion, Mr Mohammed Ali, General Manager, ETA Star Properties, said, "As a developer our responsibility does not end by just constructing the building. We wish to have an ongoing relationship with our customers and residents at our properties. It is our endeavour to ensure that residents at our properties have a comfortable living."

He further added, "At our end, our endeavor is to maintain a transparent relationship with our customers and we are glad that we took the first step by conducting the Annual General Body Meeting for the residents of the Palladium."

The forum decided to constitute a committee comprising of residents of Palladium to look in to the facilities management affairs of the property. The meeting unanimously approved the annual budget for maintenance for the property.

The Palladium, located at the heart of the Jumeirah Lake Towers, is a distinctive lifestyle project designed to provide charm and sophistication. The property is an ultra modern high-rise apartment complex, 34-storey high and spans over half a million square feet of built-up area.

Dubai Property | Dubai Real Estate

MARKET COMMENT: Dubai Shrs Drop; Rally Loses Steam

DUBAI (Zawya Dow Jones)--The Dubai Financial Market's benchmark gauge closed sharply lower Thursday amid increasing signs a rally that had picked up momentum in recent weeks is losing steam.

Buying late in the day helped the market pare intraday losses, but it still closed the session 3.1% lower at 2014.09 as investors matched prices with current economic realities facing the emirate.

"This correction was always on the cards after the market added about 39% since early May to close at a seven-month high on Sunday," a Dubai-based trader pointed out.

The global stocks rally is now cooling and though oil is holding steady around $70 a barrel views are mixed about its current strength, the trader noted.

The Dubai market has lost more than 8.4% in the last four sessions and is expected to trade lower next week after breaking through some key support levels and a bunch of bad corporate news taking the shine of bellwether stocks.

"The music failed to restart and a market trend that was resembling musical chairs has now turned into snakes and ladders with the bottom of the snake looking like 1900 on the DFM," said Matthew Wakeman of EFG Hermes.

Dubai's woes this week were aggravated by real estate giant Emaar Properties PJSC's (EMAAR.DFM) stock price crashing amid confusion over its deal with Kingdom Holding Co. (4280.SA) to develop projects in Saudi Arabia.

Emaar's shares closed Thursday -4.8% at AED3.60, losing about 14% since Sunday, and investors are unlikely to be in a hurry to buy back in amid continued uncertainty over the health of Dubai real estate market.

"I would not be surprised to see a rotation of cash towards the Saudi market in the coming few sessions where the broader range of stocks offer more defensive plays than our markets here which are heavily weighted towards construction and real estate," EFG's Wakeman added.

To be sure, Dubai wasn't the only market to suffer.

Most Gulf markets closed in the red Thursday as investors booked recent gains. Doha's benchmark gauge lost 2.6% to take its week's total losses to about 10%.

"Looks like the 'summer drift' has set in and investors are now perhaps looking to be more patient/selective with their risk appetite," noted Ali Khan, director at Arqaam Capital.

Tellingly, institutional investors were net sellers on the Dubai market this week, according to data provided by the bourse.

By Nikhil Lohade
Source: ZAWYA DOW JONES

Dubai real estate on road to recovery

Despite industry issues, market expected to see first signs of growth within 6 – 12 months say experts at Cityscape Connect forum.

Although cash and confidence issues still prevail, Dubai’s property market will witness the first green shoots of recovery sometime between the end of 2009 and the second quarter of 2010, according to a panel of industry experts speaking here today (Tuesday 2 June) at the third ‘not for profit’ Cityscape Connect business breakfast,

Attended by more than 100 property executives, legal advisors and investors, the industry forums were initiated to stimulate networking, transparency and open debate on the key issues affecting the Dubai real estate industry which although experiencing a dramatic reversal of fortunes, is now showing signs that the market is stabilising and prices are beginning to bottom-out.

Elaine Jones, CEO of Dubai-based real estate agency Asteco echoed the sentiment of the panel: “It’s about cash & confidence. For example, we need to reduce interest rates, relax lending criteria and address the residency visa issue. This will at least start to bring back much needed confidence to the market and begin to stimulate growth.”

Indeed investor confidence was debated at length, examining numerous issues such as defaults, incomplete projects, late payments and fraud. “Trust is strained,” stated Sunil Gomes, of Guru Real Estate. “Credibility is king, if we lose that we have nothing. Projects must be completed and investors better protected.”

Steven Henderson, Partner in legal firm Clifford Chance, agreed that trust was paramount but added that the law had previously been struggling to keep up with the rapid growth of the market and that an over regulated market might have an adverse effect and stifle growth.

“Dubai has introduced Escrow accounts and the Strata law, but a federal law for real estate would also help to restore confidence. Banks also have a role to play here especially when developers experience credit or cash flow problems” he said.

Difficulties in the banking sector have been widely reported, however, the panel agreed that although credit was available for exceptionally low risk customers, besides rates and approval ratings, the sector needed consistency.

“Historically, the region has practiced ‘relationship lending’ but now with the credit crunch, banks are more cautious and have raised their minimum lending criteria especially for real estate projects. They can no longer just use the project as security they often also require ring-fenced assets independent to the project as security.”

However despite industry issues the panel was optimistically cautious about the timescale for recovery. Asked when Dubai could expect a market recovery, the general consensus was sometime between the end of 2009 and the second quarter of 2010.

“This clearly shows that industry sentiment has moved into positive territory and it is equally important that Cityscape through the Connect series of events continues to provide a platform for open debate. As the largest real estate event brand of its kind in the world, it is crucial in these times of economic uncertainty that Cityscape remains a trusted brand, giving back to the industry that it supports,“ said Rohan Marwaha, Managing Director of the Cityscape

Moderated by Bob Hird, Senior Director and Head of Investments at CB Richard Ellis, other industry experts on the panel included, David Macadam, Director of Commercial Division at Better Homes and Shahram Shamsaee, SVP Shopping Malls, Majid Al Futtaim Company.

Cityscape Connect is an initiative of Cityscape, the real estate service brand that has achieved international recognition and success. Cityscape events are held in Dubai, Singapore, Abu Dhabi, New York, Mumbai, Moscow, Saudi Arabia and Latin America. Cityscape events attract key industry figures such as international investors, property developers, governmental and development authorities, leading architects, designers, consultants and senior professionals involved in the property industry. Furthermore Cityscape has also established Cityscape Intelligence, an online subscription based service for real estate professionals, Cityscape Datamonitor, a real estate research consultancy, and the Cityscape magazine.

Source: Albawaba

Dubai Real Estate | Dubai Property

Rera and Arra sign deal for unified strategy

Dubai's Real Estate Regulatory Agency (Rera) and Ajman Real Estate Regulatory Agency (Arra) have signed a co-operation agreement to create a unified strategy to develop the property sector.

The agreement emphasises the need to create a unified strategy to develop, modernise and organise real estate-related activities including developers, real estate brokers and property management companies as well as the workforce of such companies.

The agreement, which underlines the importance of strengthening co-operation ties between the two organisations, was signed by Rera CEO Marwan bin Ghalita and Arra Director-General Omar Al Barguthi in the presence of Sultan bin Butti, General-Manager of Land Department.

Bin Ghalita said the agreement as a major step forward in the real estate sector. It will focus on in establishing a unified vision in developing, updating and regulating all real estate activities, companies and people who work in brokerage offices, and real estate management.

"In addition we will prepare necessary criteria and conditions to own broker identity and real estate management identity. The agreement will regulate the work of brokers and real estate advertising between the two emirates along with laws and regulations in Dubai and Ajman by establishing a unified database with all information and data relevant to the brokerage business, real estate management or real estate development," bin Ghalita added.

Al Barguthi said the agreement corroborates the iron-clad relationship between Arra and Rera.

Source: Business24/7

Dubai Property Rentals | Dubai Property for Sale

New visa law in Dubai to be implemented for property buyers in 2009

Visa associated to property buyers in Dubai would in all likelihood get legal sanction within this year, according to a source. This would be a big boon for Dubai real estate which is at present reeling under the impact of financial crisis. Vagueness pertaining to this matter had aroused a lot of doubts among potential real estate investors and with legal backing the cloud of confusion enveloping the property sector might lift.

According to a source, law will explain who deserves a visa in terms of their investment in the real estate. Previously, most real estate advertisements boasted of 99-year visa for purchase of freehold property.

The government of Dubai had opened up the property sector to foreign national in 2002. Since then Dubai property sector never looked back.

Buy Dubai Property | Dubai Real Estate

Are there any buyers for real estate in Dubai?

Are there still investors buying property in Dubai? After the modification established by Dubai government regarding freehold ownership by foreigners of properties in Dubai, the market in the city has legitimately gone crazy with global businessmen lining to invest thousands of millions of dollars in the market. Unexpectedly the business world turned interested in Dubai Real estate properties Market. Therefore the cost of properties in Dubai have become threefold in years and still rising but now it has gone down since due to the global financial crisis.

Real estate hit by political uncertainty

By Moonis Ahmed
Dailytimes

KARACHI: As uncertainty continues on the political front in the country, the builders and developers are finding it hard to attract investment, industry sources told Daily Times.

They said that the most of the builders and developers who came back from Dubai and others Gulf states recently have started to launch projects which they left incomplete and are offering attractive packages to lure investors.

“Despite the forecasts that the economy is on the road to recovery, the real estate business is still facing hard times in the country,” they added.

Babar Mirza Chughtai, Chairman, Association of Builders and Developers said that property business has lost steam and has failed to attract fresh investment. During some last months many projects have been launched but the builders attributed it primarily as a part of the strategy to avoid encroachment on empty plots by the land mafia.

The builders, who had introduced new projects, were forced by the situation in the city to start some activity on such plots like opening offices, developing the land or posting some security guards at the site in order to secure the land.

About falling steel and cement prices he said that are these not the main issues that could brighten hope among the investors. Actually, investors of real estate are looking forward for a pleasant business environment to invest.

These two items hold 50 to 60 percent share in the overall construction cost of any apartment project or a house.

He said that government housing schemes in last 25 years like LDA, Awami Ghar and others failed to provide any relief. “Continuous political instability coupled with law and order situation are discouraging investors and public to take risk in the real estate business,” Muhammad Asim, director sales and marketing at World Link Real Estate said.

He was of the view that builders are trying to recover their lost confidence from the people by launching new projects and they are offering attractive packages.

Many people, who are trying to own a home after fall in property prices are finding it hard to make some saving as rising cost of living caused by high food inflation and utility bills are eating up their entire hard earned income, an expert said. It is pertinent to mention that the country, at present, is facing a shortfall of 6 million housing units. A leading cement maker and exporter said that sale of cement has declined by 15 to 20 percent in the last one-and-a-half-month as economic conditions have hit the construction activities. However, all the realtors were of the view that the prices of property would further drop in case the political situation remains unstable.

Dubai Real Estate | Dubai Property

U.A.E. Recession i Architecture

In contempo years, architects descended aloft Dubai, acquisitive to capitalize on its feverish architectonics boom. But while the Persian Gulf city's sprawling skyline is still dotted with cranes, the bazaar actuality has fizzled.

As of aboriginal February, more than half of Dubai real estate projects were stopped or canceled, from the 3,281-foot-tall Nakheel Tower advised by Woods Bagot to the Hydropolis, a 220-suite underwater auberge envisioned by artist Joachim Hauser. Analysts say that Dubai Property values, in total, will abatement up to 60 percent in 2009 afterwards years of almanac growth. Given this desperate about-face of events, architects are getting afflicted to amend their affairs in the region.

"Everyone is demography a absolute wait-and-see approach," says Wayde Tardif, an American artist who in 2007 co-founded POSIT Studio in Dubai. Tardif charcoal optimistic, acquainted that the arrest will adapt the bazaar and acquiesce architects to bolt their breath. He predicts a backlash in 16 to 18 months; he doesn't apprehend a alone city-limits abounding of alone towers. "Dubai has too abundant pride for that," he says.

In the accomplished decade, Dubai, amid in the United Arab Emirates (UAE), has boarded on ever-grander projects at alarming acceleration in hopes of acceptable a above apple metropolis. Today, its abridgement relies on tourism, absolute estate, and banking services; oil revenues accord beneath than 10 percent to its GDP.

Initially some anticipation the arid boomtown could brim the all-around banking crisis. By October, however, adopted investors were vanishing, bounded lenders were retrenching, and oil prices were demography a dive. In contempo months, The National, a UAE bi-weekly for expatriates, has been brindled with letters of accumulation layoffs. "There are abounding instances of adviser firms abbreviation agents by added than 50 percent, or closing their Dubai appointment altogether," says Scott Hyndman, a development administrator at a Dubai-based acreage company. Some belief affirmation that hundreds, if not thousands, of cars sit alone at the Dubai airport, apparently larboard there by foreigners beat the country.

While captivation acceptance in Dubai, abounding architectonics firms are alive their focus 70 afar to the southwest, to oil-rich Abu Dhabi. The basic of the UAE, Abu Dhabi has acquired gradually over the decades and generally is admired as a added livable—and added stable— burghal center. "Where Dubai has been a abstract market, I anticipate Abu Dhabi is a abundant added serious, play-by-the-rules market," addendum Steven Miller, FAIA, managing administrator of FXFOWLE's Dubai office. His close is actively advancing plan in Abu Dhabi, area above developments such as Saadiyat Island—a $27 billion multi-use activity with barrio by Jean Nouvel, Zaha Hadid, and Frank Gehry—are reportedly still on schedule.

Guy Source, a UAE-based application recruiter for the architectonics industry, agrees that Abu Dhabi seems beneath afflicted by the banking crisis than Dubai. He adds that added Middle Eastern markets authority affiance as well, acquainted that there are jobs cat-and-mouse to be abounding in Qatar, Kuwait, and Saudia Arabia.