Real estate market stabilising in Dubai

The property market in Dubai is stabilising and set for a rebound in 2011, according to the latest research but there is still a concern in the industry about over supply.

A new report from international property consultants Jones Lang LaSalle shows that the volume of transactions has remained consistent in the first half of 2009 and the narrowing gap between asking and achieved prices is a further indication that the market is improving.

'The stabilisation of transactional volumes is an important indicator which reflects improved confidence among investors and the market is beginning to stabilise albeit at significantly lower levels of pricing than those seen earlier in the year,' explained Craig Plumb, head of research at Jones Lang LaSalle Mena division.

But the report also reveals that fewer than half of the property units expected to come on stream in Dubai by the middle of the year have been delivered. It had expected 22,400 units to be delivered in the first half of 2009 but less than half have done so.

'It is quite difficult to ascertain the actual number, but according to our survey less than half of the units have been delivered by midyear,' Plumb said.

In February the Real Estate Regulatory Authority in Dubai said that 31,003 and 43,880 units were set to enter the market in 2009 and 2010 respectively. However, its studies and research section had said that 20% of residential units will not enter the market on time in 2009, while 40% of residential units may be delayed in 2010.

The amount of units that complete is crucial to the emirates real estate recovery, according to Plumb. It will be the future supply of properties and employment opportunities generated in Dubai that would determine the revival time for the market.

'There are a lot of factors that affect the real estate market, but the prime ones are future supply of units and population growth and shrinkage,' he added.

He reiterated that Dubai's property market was expected to see a rebound in 2011 after stabilising in 2010.

Further consolidation among Middle East property companies to cope with economic downturn

More property companies are merging in the Middle East in a sign that the real estate market is moving forward and steadying itself to cope with the new realities created by the global economic downturn.

In the 'new' property world that will take the Gulf region forward as the real estate industry starts to recover big will be beautiful and smaller companies are likely to be less able to survive, it is believed.

Analysts also point out that at the height of the property boom in places like Dubai perhaps too many property companies were created in response to demand but now that demand has fallen away there is no room for the smaller ones.

The merger of Dubai Properties, Sama Dubai, Bawadi, Remraam and the Tiger Woods golf course will create one of the largest property entities in the Middle East, said parent company Dubai Holdings.

The strategic move comes just two months ahead of a mega merger planned between subsidiaries of Dubai Holdings and Emaar Properties that was announced in June and due to be completed in October.

'This realignment among Dubai Holding entities was widely expected ahead of the big merger between its real estate companies and Emaar properties,' said Tariq Ramadan, a property analyst and chairman of Tharaa Holding.

'I see this as a positive move. When the property sector was booming, the government has launched a number of companies, although that was not necessary. However, time has changed,' he explained.

'Right now, consolidation and merger are the way to move forward. This merger will help Dubai Holding to move ahead with the merger of its real estate assets with Emaar Properties,' he added.

According to Marios Matatheftis of Standard Chartered Bank consolidation is something that will continue. 'Growth rates are not reaching the levels of previous years so consolidation is justified,' he said.

Sama Dubai and Dubai Properties together have one of the largest land banks within the Middle East and North Africa region covering a geographical stretch from the United Arab Emirates to Morocco.

In a statement Dubai Holding said it has realigned its real estate and business park entities under two verticals as part of a restructuring programme due to the economic downturn that it announced recently.

Although it is not known what name the new merged company will have it is predicted to be branded as the Dubai Properties Group. The company also said that existing project plans will continue.

Year-on-year Dubai property price fall hits 9%

A report by property consultancy CB Richard Ellis on the Dubai real estate market confirms that the sector is unlikely to see a short term turnaround in fortunes due to a number of factors. These include redundancies in the real estate and financial sectors and the ripple effects in other industries, the fall in the influx of expatriates that had helped to fuel the property boom and the local effects on short term lets of the decline in tourism.

The completion of new supply has meant that the properties worst affected are in units that have come online in the past six to nine months, mainly in areas such as Business Bay, Jumeirah Lake Towers and, for commercial units, the Tecom areas.

In terms of lease rates for residential properties the report states that the year on year decline from Q1 2008 to Q1 2009 stands at an average of only 9%, although the downward change from Q4 2008 to Q1 2009 is much larger, an average of 23%, reflecting the enormous price gains seen in the market throughout the first nine months of 2008.

Predicting when the market will bottom out is complicated by the fact the real estate sector in Dubai as elsewhere is largely sentiment driven.

'You still have a number of investors who bought a lot of property, and are probably willing to sell some of it at a very low rate in order to recoup part of their costs,' Matt Green, Associate Director for research and consultancy at CB Richard Ellis told AME Info.

'I don't think that we'll see units going for much below the original price, but each case is a reflection of the investor rather than the market. There is such a level of negative sentiment at the moment that if some investors are wiling to go lower in terms of sale prices then everyone else does.'

The number of property transactions has also witnessed similar declines, in both off plan and ready built units. Data sourced from the Dubai Land Department shows a drop in the number of sale transactions from 1,486 in Q1 2008, to just 595 in Q1 2009, a drop of approximately 60%.

'What we're looking for in order to gauge the turn is a period of stability, both in terms of selling prices and rental figures, but it's hard to see that happening before the end of the year.'

Offplan properties have borne the brunt of the effects of the downturn, with speculative investors in particular defaulting on payments or selling units at close to original prices. While the speculators have been replaced in the market by end users and investment funds, these are adopting a 'wait-and-see' approach and concentrating on units that are either finished or scheduled for completion within the next 12 months.

'The new supply that has been planned to come online over the next couple of years is going to put severe pressure on the market, especially as demand continues to slow,' said Green.

Dubai landlords accept changing rental terms

Dubai's rental sector continues to suffer as the market performs poorly in the wake of excess property coming online, coupled with residents leaving the emirate. A recent report reveals that average rents for villas has dropped by 42% from the peak of Q3 2008 to Q2 2009.

In the same report, released by Dubai-based Landmark Advisory, average rents for apartments fell by 29% from their peak period of Q4 2008 to Q2 2009.

Year on year, rents for villa and apartment rents have declined by 19% and 12% respectively.

For those areas still finding interest in leasing property, the report argues that demand is being driven by relocations from the other emirates within the UAE such as Abu Dhabai, Sharjah and the Northern Emirates.

The report noted those relocating from Abu Dhabi are primarily focusing on property in Dubai Marina, Jumeirah Beach Residences, Palm Jumeirah and the Green Community whereas those relocating from Sharjah are seeking affordable accommodation in Mirdiff, International City and Al-Qusais.

During Q2 2009 average rents in Dubai declined 23% to Dhs129,900 while average villa rents fell 19% to Dhs220,350.

Falling prices, however, represent a double-edged sword for landlords. Not only do they suffer through declining rents, but with market conditions in the customer's favour, they can make more demands on the terms of the lease.

Shift in terms

Consequently, Dubai's market is experiencing a paradigmatic shift in the approach by landlords. Unlike the previous few years, which saw the burgeoning ex-pat population faced with stringent and inflexible measures requiring one cheque for a year's rent, the average in the second quarter of 2009 was three cheques, with some reports claiming instances of landlords accepting up to 12 cheques.

The report believes the mitigating factors are seen in the population exodus that has been seen in the emirate as those without jobs leave the country: 'While it is difficult to quantify, anecdotal evidence suggests that a significant number of expatriates have left the UAE in the first half of 2009.'

And, despite the influx of relocations from Sharjah and Abu Dhabi off-setting overall decline, the report is not optimistic.

'We expect more out-of-work- expatriates to leave the UAE by summer's end,' the report said but it stopped short of making any further predictions such is the lack of clarity over the future. 'Looking to 2010, actual rent levels will depend on multiple factors, including the real volume of unit deliveries and net demand growth.

'While relocation trends are currently propping up the leasing market, its long-run performance will be defined by Dubai's ability to achieve net job creation. This will depend on macroeconomic performance and government policies, both of which are impossible to predict.'

Support fund

Though difficult to predict, Dubai has made some moves to shore up its economy. On August 12 the ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum appointed Abdulrahman al-Saleh, the Director General of Dubai's Department of Finance, as the Chairman of the Dubai Financial Support Fund.

The fund was established in late July as an independent legal entity to manage the proceeds of the Dubai Government's $20bn sovereign bond programme, and any future issues of the state.

Three board members were also announced, Mattar Mohammed al-Tayer, chairman of the Roads and Transport Authority (RTA), Majid Saif al-Ghurair, Chairman of Shuaa Capital, and Riad Mohammed Khalfan Belhoul, legal adviser to Sheikh Mohammed.

The board's duties include assessing the loan applications from government and government-related entities, as well as selecting strategic projects to be granted financial support.

Dubai in 2050

I’ve seen the future and it’s full of skyscraper after skyscraper. But what else would you expect the future vision of Dubai to consist of? As you can see below, some bright spark has pictured the future and lo and behold the Dubai skyline is full of extremely tall, extremely contorted designed buildings.

The Lawns - Development in Dubai

Full Description

The Lawns is located in the heart of Jumeirah, the most exciting place in Dubai. Bordering the world’s largest and exciting theme park, Dubai Land and Sports City.

Located near the free zones DMC, DIC, IMPZ and the Jebel Ali Free Zone, Jumeirah Village South caters for those who wish to live near these business zones in exclusive tranquil surroundings, where peace of mind and security is fully assured. Luscious landscaping, sparkling water views provide a backdrop for these spacious luxury apartments. The LAWNS has expansive open spaces and unsurpassed recreation facilities, including maritime activities.

Facilities

• Landscaped Lawns
• The Lawns-III Residence Club
• State-of-the-art health Club
• State-of-the-art modern gym
• Outdoor Swimming pool
• Children wading pool
• Jacuzzi
• Exclusive Jogging Park
• Communal Barbeque and outdoor poolside amenities
• Spacious Marble-tiled lobby and reception area
• Card controlled property access and door entry system
• 24 hours mobile security and maintenance service
• Fire-fighting system and generators
• Covered parking for tenants and visitors

Jumeirah Village South Ammenities

• Schools
• Kindergarten/Nursery
• Community Centre
• Central Park
• Oasis Promenades
• Wadi Walks
• Neighbourhood Parks
• Jogging Trail
• Cycling Trails
• Community Swimming pools
• Football Pitch
• Cricket Pitch
• Croquet Lawns
• Tennis Courts
• Lake Club
• Mini Golf
• Life Essentials
• Medical Clinic
• Community Retail, Emergency Helipad
• Management Suite
• Abundant Parking
• Guard house for Security
• Waterway System

Reasons to buy on The Lawns?

• -Great rental potential, would make fantastic staff accomadation and ideal for holiday useage also
• -Very low entry level prices
• -The first 3 buildings sold out almost overnight
• -Superbly located, in the middles of everything
• -Good finance available
• -Fantastic ammenities internally and communally
• -Low rise buildings, make the development stand out from the many towers you find in Dubai
• -Mortgage finance up to 70% available

The Old Town - Emaar Properties Dubai

The Old Town in the Burj Dubai District

"The Old Town in the Burj Dubai District is a pedestrianised lifestyle development with spectacular views of Burj Dubai and the Dubai Mall, and in close quarters to the colour and vibrancy of Dubai's downtown area.

Construction has already begun and the first apartments will be ready for handover by the end of 2006.

The units comprise one-room to four-room apartments and penthouses ranging from 725 sq ft to 3,150 sq feet area.

The sales centre will be open tomorrow from 9:am to 8pm, seven days a week.

General Sheikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Minister of Defence expressed satisfaction with the uniqueness of the development during his visit the Old Town Sales Centre on Monday.

Shaikh Mohammed was at the Burj Dubai site to witness the first cement being poured in the foundations of the world's tallest building.

"The Old Town is more than just our trademark lifestyle community. It is Emaar's finest hour," said Bahiya Kayed, sales manager, The Old Town Sales Centre.

"This mid and low-rise lifestyle choice blends the essence of modern living with the beating heart of Dubai. It is a community that is a fusion of the senses including east-meets-west cuisines, old-meets-new lifestyles and past-meets-future entertainment," she said.

"The lifestyle in this community motivates people to get out of their cars and stroll. It encourages them to slow down their hectic pace.

"It also creates a safer, more vibrant community which is why The Old Town is a benchmark for future developments," she said, while adding that vehicles will be parked in underground car bays.

With a building area spread over 3.7 million square feet, The Old Town will feature courtyard apartments and Souk-styled retail facilities recreating at once the mystical world of ancient Arabia associated with lush palms, winding alleys and bustling marketplaces with exotic merchandise.

Walkways, rooftop terraces, landscaped gardens and water features will provide a sense of exclusivity.

Luxury hotels and an indoor retail facility designed in traditional style with domes, arches and volumes, will anchor the commercial neighbourhood.

"I have no doubt that The Old Town development will present an attractive investment proposition to the prospective homeowner because it's an outstanding model of an integrated urban economic community with a touch of traditional Arabic class," Bahiya said.

The Old Town Sales Centre will provide a window to what the Old Town Development will be all about and is prepared with meticulous care to showcase the rich diversity of the Middle Eastern culture.

The centre's rich Arabic architecture, period furniture and fittings are made unique with exquisite details from the Arab heritage.

The ornate carved doors open into a welcome area that leads into a traditional Arab courtyard experience replete with a gushing fountain, a fully furnished model suite and a scale model of the Old Town complex.

Lake Terrace - DAMAC Properties Dubai

Lake Terrace is situated in close proximity to some of Dubai's landmark sporting, leisure and recreational facilities. The scenic beaches and serene blue waters of the Gulf offer international sporting facilities like water and jet skiing and powerboat racing and are all just a short drive away from your home at Lake Terrace.

In addition, Dubai Marina, Emirates Golf Club, International Hotels and impressive new retail malls are just some of the leisure facilities within easy reach of this location.

Situated in the Jumeirah Lakes, Lake Terrace overlooks a picturesque man-made lake, incorporating extensive recreational parks and lawned areas, and a dazzling variety of flora and fauna that breathe life to the view.

Imagine a wide expanse of lakes and lush greenery in the affluent Jumeirah locale. Amidst the scenic splendour towers a collage of the most modern and luxurious private castles.

A marvel of contemporary architecture, this high rise tower overlooks a picturesque man-made lake, incorporating extensive recreational parks and lawned areas, and a dazzling variety of flora and fauna that breathe life to the view.

Besides the on-site restaurants, retail outlets and children's creche, a huge infinity swimming pool, fully equipped gymnasium and health facilities provide ample scope to satisfy your passion for recreation, sport and excercise.

Lake Terrace is situated in close proximity to some of Dubai's Landmark sporting, leisure and recreational facilities.

Location

Lake Terrace is located in Jumeirah Lake Towers off the Sheikh Zayed Highway (across from the Dubai Marina).

Type of Units

• 40 STOREY RESIDENTIAL TOWER

• Studio

• Apartments (1, 2 & 3 bedroom, 484 to 1,561 sq.ft.)

• Duplex Penthouses (3207 sq.ft.)

About DAMAC

DAMAC Properties mission is to provide buildings incorporating the latest innovations and concepts and offers clients unique state-of-the-art, custom-made properties specifically for their purposes. DAMAC Properties, with its well-experienced staff possess vast experience in managing large projects from concept to completion, including land purchase, appointment of architects & contractors and final handover. DAMAC Properties is both literally and figuratively, a ‘household’ name in Dubai, for its impressive portfolio of residential and commercial real estate projects. DAMAC is managed by a professional people who allow you a range of flexible choices, pay the finest attention to small details, and care enough about your dreams to make them all come true for you. With hundreds of happy home owners located in all the new residential communities of Dubai, DAMAC symbolises a partnership for life.

Jumeirah lands Chinese beach resort contract

27/07/2009 - Dubai Property News

Dubai's luxury hotelier Jumeirah has announced that it has been awarded a lucrative new contract to develop a new beachside resort on Sanya, an island off the southern coast of China.

The new Jumeirah Qing Shui Bay resort will feature a 250-room hotel and 50 private villas and is one of six Chinese projects planned by Jumeirah.

Shanghai will become the first city to experience the luxury accommodation provided by Jumeirah when the 338-room Han Tang Xintandi hotel opens there later this year.

The Qing Shui Bay resort is expected to open in 2013, further expanding its presence in the region.

Reuters reports that Jumeirah is currently involved in the construction of 14 hotels in Phuket, Thailand, the Maldives and other leading tourist and business destinations.

The company has also recently launched the Jumeirah Summer Days promotion, offering parents the chance to stay at its luxury hotels in Dubai, New York and London with concessions available for children under the age of 15.

ADNH posts 17.1 per cent H1 growth

30/07/2009 - Dubai Property News

Abu Dhabi National Hotels (ADNH), one of the UAE capital's leading hospitality groups, has announced a 17.1 per cent year-on-year rise in profits for the first half of 2009.

In a statement today (July 30th), the company announced total net profits of AED324.3 million for the period ending June 30th, with consolidated revenues standing at AED950.6 million.

Saif Mohammed Al Hajeri, the company's chairman, said that the group has enjoyed growth in all business sectors, including hotels, transportation, travel, tourism and catering.

"Catering and general purchasing divisions in particular have enjoyed significant increases in business as compared to the corresponding period last year," he added.

The comprehensive service offered by ADNH may make it an attractive choice for UAE property investors staying in the capital while carrying out viewings.

ADNH also last month announced that it is extending its hospitality services in the northern emirates with the opening of Siji Hotel Apartments in Fujairah.

Dubai property offers 'window of opportunity'

27/07/2009 - Dubai Property News

Many property investors realise that the Dubai property market is offering a window of opportunity to snatch up prime real estate at a lucrative discount, the National reports.

Speaking to the paper, Graham Dixon, a property investor and expatriate living in Dubai, said that affordability has improved substantially in recent months.

"I don't think we'll get these prices at any other time. I've made up my mind to buy and will try and negotiate as much as possible," he said.

Meanwhile, the paper warns that buyers who fail to act quickly could end up missing out on the one-time prices seen in recent months as property prices in Dubai's most popular neighbourhoods begin to move upward.

Earlier this month, the National reported that real estate prices in Dubai and Abu Dhabi have risen considerably in recent weeks, with a 12 per cent jump witnessed in June as investors entered the market in search of property selling at a discount to its true market value.

Meadows 9

Property ID		2009/07/MEA004
Property Type		Villa
Bedrooms		5
Bath Room		4
Property		Meadows 9
Community		Emirates Living Community
Emirate		Dubai
Area		4600 Sq.Ft.
Furnished		Select
Completion Status		Ready To Occupy
Facilities		Maid room Garden Swimming pool Kids play area Security CCTV Kitchen appliances Central A/C Utilities included

PROPERTY DETAILS:

The Meadows villas offers residents a choice of three, four, five, six and even seven bedroom villas, that are both distinctive in design and spacious in size. All homes also come with balconies and good-sized gardens so residents can truly appreciate the beauty of their surroundings. Facilities at The Meadows include parks, water features, swimming pools, play areas and gyms, as well and the best 24-hour security possible. Residents also have the benefits of shops, supermarkets, restaurants and cafes within the development. The entire Emirates Living Community brings different the different villas and lifestyle of the various Emaar developments into one giant community, including schools, community centres and recreational facilities.

PROPERTY LOCATION:

Property	Meadows 9
Community	Emirates Living Community
State	Dubai
Country	United Arab Emirates

PROPERTY FLOOR PLAN:

Floor Plan

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