News

Dubai expands residency visa for property investors

Sarah Kendell — 29/06/2011 10:21:00

The UAE has extended its residency visa scheme for foreigners investing in the national property market, with home buyers now granted three years to live in the country rather than the previous six months.

The move comes after the scheme was controversially shortened in 2009, with buyers originally able to gain five years' residency in the Emirates if they purchased a property.The tightening of visa restrictions from this initial five year period to six months is thought to have contributed to the massive downswing in demand that occurred in the UAE market, especially Dubai, in the wake of the global recession.

UAE Prime Minister Sheikh Mohamed bin Rashid al Maktoum came to the decision yesterday after meeting with his cabinet in the Presidential Palace. The state-run Emirates News Agency said the lengthening of the investor's visa was likely to "enhance the attractiveness of the real estate sector".

"This could significantly boost demand in the residential sector, particularly in Dubai", said Citigroup analyst Farouk Soussa. The Emirate city has struggled with an oversupply in its real estate market for the last couple of years, so for local development and construction firms, as well as agents and existing owners, the news is certainly welcome. The prospect of a property recovery has already been felt in the stock market this morning - Bloomberg reports that the Dubai Financial Market Real Estate Index, which includes the share prices of five developers, had risen 1.4 per cent by 11:34am local time.

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Barbados, UAE sites added to World Heritage List

Sarah Kendell — 28/06/2011 11:43:00

The United Nations World Heritage committee has recognised the historical value of both Barbados' capital, Bridgetown, and the Emirate city of Al Ain, and included them on the world-renowned UNESCO World Heritage List, which should see a significant rise in tourism to these areas.

In its 35th session at UNESCO's Paris headquarters, the World Heritage Committee said that while Al Ain, which lies equidistant from Abu Dhabi and Dubai, was significant for its evidence of prehistoric settlement in the Middle East, the Barbadian capital of Bridgetown should be recognised for its outstanding example of British colonial architecture.

"With its serpentine layout, [Bridgetown] testifies to a different approach to colonial town planning compared to the Spanish and Dutch colonial cities of the region, which were built along a grid plan", UNESCO said in a press statement. Other attractions to be added to the revised World Heritage list included the temples of Hiraizumi in Japan, the 40 ancient villages of northern Syria and the landscape of Serra de Tramuntana on the Spanish island of Mallorca.

Whilst both Barbados and the UAE have long been popular as a destination for luxury and commercial development, the inclusion of attractions within this country for their natural and historical significance should see their respective tourism markets being opened up to a wider audience. Buy-to-let investors and property owners in both destinations can therefore expect to see their values increase in the near future.

Bargain rents drive businesses back to UAE

Sarah Kendell — 30/03/2011 12:29:00

With the latest figures from the Real Estate Regulatory Agency showing rents in Dubai have plummeted by as much as 30%, it's easy to see why businesses with a Middle Eastern focus are now reconsidering the emirate as an amazing bargain. In the wake of the recent political unrest in nearby Bahrain and Egypt, stablelocations to set up shop in the region are becoming more and more scarce, and commercial tenants are returning to the Emirate in droves - for prices as much as a third cheaper than what they would have paid at the height of the boom five years ago.

"Demand is being led by the financial and professionalservices sector and continues to focus on single landlord-owned buildings", says CB Richard Ellis's head of UAE research & consultancy, Mat Green. The property advisory firm is seeing a strong recovery in commercial real estate activity in Dubai's city centre. "With rental rates now becoming so much moreattractive, we are seeing an increasing number of occupiers looking to relocate back to the CBD, exploiting favourable condition to secure high quality office accomodation at a fraction of rents once demanded."

In a win for buy to let and commercial investors,tenants are now signing on for increased periods of time, so although the rental yields are lower, they're also guaranteed for up to 10 years. "Elongated terms of between five and 10 years are now becoming more prevalent, as landlords and tenants seek to reduce their risk exposure", says Green.

Meanwhile, new Grade A office developments have alsoboosted commercial property demand in Abu Dhabi, with many of the upcoming office premises scheduledfor completion this year on their way to being full. "We are already seeing significant interest from occupiers of all sizes seeking to secure some of the new office buildings available in 2011, such as International Tower, HQ and Al Sowwah Square", said Green.

Better protection for Gulf investors

Catherine Deshayes — 29/07/2010 07:36:00

According to a new poll conducted by Arabian Business, more than 70 per cent of investors are adamant that better protection is desperately needed for international buyers investing in the Gulf region...

Additional protection measures would help to boost investor confidence in the Gulf property markets, which in turn would boost cashflow coming into the region.

More than 70 per cent of international investors who responded to the Arabian Business poll said that the level of protection was nowhere near high enough and that they would feel far more confident investing in the region if more protection was introduced.

Just 2.2 per cent of people said current regulations were sufficient, while 16.8 per cent said it was up to individuals to do their own due diligence.

A further 7.3 per cent of those who took part in the poll warned new laws would lead to the return of speculators to the market and artificially inflated real estate prices.

Currently, if an investor has ploughed money into a development that is then stalled or cancelled, the only option they have is to trawl a dispute through the civil courts- something that is time-consuming and has a poor success rate. The courts have seen a dramatic rise in the number of disputes brought to them following the credit crunch, which caused so many projects to be put on the back burner or cancelled completely.

This atmosphere has led to great uncertainty amongst investors and a big drop in the number of international investors buying properties in the debt-hit region. Following pressure from all sides, steps to address the uncertainty facing investors have already been taken in the United Arab Emirates with the introduction of the Strata Law last month.

The law will mean that homeowners associations will be able to choose companies to maintain shared areas such as lifts, foyers, swimming pools and gardens, taking that decision out of the hands of developers and potentially reducing residents' costs.

"The implementation of the strata regulations could yield savings for homeowners of as much 20 per cent on some developments," said Jim O'Hare, the chief executive of the strata law consultancy Place Strata Management.

A new scheme that offers Dubai investors and developers a ‘government guarantee,' has also been introduced. The Land Department's Tayseer scheme, announced at the start of July, covers 40 projects in the emirate and effectively guarantees their finance and completion. The scheme's first phase covers projects which are under construction or almost finished, including developments in Business Bay, Dubai Marina and Jumeirah Lake Towers.

Sultan bin Butti bin Mejren, director general of the Land Department, said that the initiative would 'boost liquidity in the market and bolster confidence in the construction sector.'

Companies are also researching different ways of helping investors who have lost out as prices have plunged. Dubai has been especially hard hit with prices dropping by a whopping 50 per cent since their peak at the end of 2008. The Smith and Ken agency has launched a service to help investors of off plan property recover the value of their purchases.

It says its Real Estate Recovery Scheme works via a like for like credit note to the value of what they have already paid against one of its properties.

Benjamin Smith, the company's chief executive officer, said, "There is always an element of risk involved when investing in off shore development plans even though you do a thorough background check on the developer and the property. There are situations that are beyond one's control like worldwide economic challenges or the developer going bust.

"Our Real Estate Recovery Scheme (RERS) aims to help investors in such unfortunate circumstances. Whether they have put down a 10 per cent deposit on the property or paid up a larger percentage, we will help them to recover their money by swapping units in most delayed or cancelled developments for thriving completed properties in prime UAE and international locations," he added.

Check out homes for sale all across the UAE at http://uae.themovechannel.com/

Picture of Abu Dhabi by aekpani

Abu Dhabi: Leaning to the right?

Catherine Deshayes — 09/06/2010 10:10:00

Plenty of skyscrapers dominate the desert horizons of the Middle East including the world's tallest building, the 828-metre Burj Khalifa in Dubai, but until now the term 'leaning tower' has been associated with just one destination - Pisa...

The centuries-old Italian tourist attraction - which began to lean shortly after it was built in 1173 - has a new rival in the shape of the 160-metre-high Capital Gate building in Abu Dhabi.

The 35-storey tower, which is owned and developed by ADNEC (Abu Dhabi National Exhibitions Company), has already been certified as the 'World's Furthest Leaning Man-made

The tower leans 18°, more than four times that of the Leaning Tower of Pisa, the previous record holder, and earned the title following evaluation by the Awards Committee.

To achieve the impressive lean, Capital Gate's floor plates are stacked vertically up to the 12th-storey, after which they are staggered by 300 to 1400 mm.

The tower also features other "innovative" construction techniques, according to the developer, including the world's first known use of a 'pre-cambered' core, which contains more than 15000 m3 of concrete reinforced with 10000 tonnes of steel rebar.

The core, deliberately constructed slightly off centre, straightens as the tower rises compressing the concrete and giving it strength, before moving into a vertical position as the weight of the floors has been added.

Unlike the tower in Pisa, the Capital Gate structure was specifically designed to lean and evaluators from Guinness World Records were invited to inspect the building when it was completed in January.

Designed by architect RMJM and adjacent to the Abu Dhabi National Exhibition Centre, which is within ADNEC's Capital Centre, when fully complete at the end of this year it will house the 5-star Hyatt Capital Gate hotel and about 20000 m2 of office space.

Ali Saeed Bin Harmal Al Dhaheri, ADNEC's managing director, said there had been numerous challenges along the way but that the company had 'enjoyed the opportunity to create an iconic structure which is not only distinctive in appearance but also extremely functional'.

Check out homes for sale across the UAE at http://uae.themovechannel.com/

Picture of Capital Gate

No date yet being given for new three year property visa in the UAE

admin — 04/11/2011 07:45:00

There is not date for real estate owners in the United Arab Emirates to be granted a three year residency visa if their property is worth more than AED1 million, it has been confirmed.

‘We hope it will be soon,’ said a spokesman for the Dubai land Department who declined to be more specific.

The lack of a date comes amid rumours that the plan could even be scrapped after it was reported that the idea had met with a lukewarm response and was judged to be a kind of desperate measure to prop up the UAE’s struggling property market.

The UAE government said in June it would replace visas that require renewal every six months for some home owners, but the decision appears to have made little progress in the months since.

Source: ExpatForum.com

New blow to UAE property market as analysts predict more price falls

admin — 24/10/2011 08:48:00

Property prices and rents in the United Arab Emirates may drop a further 20% this year and next because of excess supply, according to analysts.

Meanwhile the latest data from CBRE shows that sales transactions in Dubai fell 45% in the third quarter of the year, adding another blow to the emirate’s already battered residential property market.

‘There is a further leg down to the UAE property market before residential prices and rents recover,’ said analyst Mohammad Kamal of Arqaam Capital. ‘We see a further 15 to 20% in downside to prices and rents in financial year 2011 and 2012,’ he added.

Source: Property Wire

Rents in Abu Dhabi still falling, but at slightly slower rate

admin — 11/10/2011 07:18:00

The Abu Dhabi residential property market is still sluggish as apartment rents continue to fall and sales levels remain low, according to the latest real estate data.

Rents in Abu Dhabi fell by 6% in the third quarter of 2011 although the rate of decline slowed compared to previous quarters, the quarterly real estate monitor from Asteco shows. Rental values had fallen by 8% and 9% in the previous two quarters.

Villa rental rates were relatively static for the second consecutive quarter although villas in off island locations such as Mohamed Bin Zayed City and Khalifa City continued to slide by 5% on average.

In terms of sales, the market was still characterised by low sales volumes but the level of sales enquiries increased amid the delivery of completed projects.

Source: PropertyWire.com

August sees 14% passenger growth at Abu Dhabi International Airport

admin — 04/10/2011 05:35:00

Abu Dhabi Airports Company released the traffic report for Abu Dhabi international Airport for the month of August 2011, recording a robust 14% growth over last year’s figures with passenger traffic reaching 1.09 million.

The double digit growth recorded at Abu Dhabi International Airport during August is mainly attributed to the healthy growth of all airlines operating at the airport, while also supported by the Eid holiday. Being one of the fastest growing airports in the region, Abu Dhabi has been growing by 12.2%, during the first 8 months of 2011.

James E. Bennett, Chief Executive Officer of Abu Dhabi Airports Company commented: “The continuous increase of Abu Dhabi International Airport’s passenger traffic goes in parallel with the growth that the Emirate is witnessing in trade, industry and tourism. Up to August, we have welcomed 8,000,000 passengers through our airport, providing efficient and high-quality services. We continuously monitor the market and the travel trends, to ensure that Abu Dhabi international Airport offers enhanced connectivity and an increased number of destinations and frequencies to all travellers.”

London, Jeddah, Doha, Bangkok, and Manila were the top five routes from Abu Dhabi International Airport during the month of August, generating 21% of the total passenger traffic at the capital’s airport. The top regions for the month were Far East, Middle East and Europe with 37%, 25% and 22% growth respectively.

Source: TravelDailyNews.com

Cancelled and delayed projects in UAE increasing, report shows

admin — 16/09/2011 03:33:00

The amount of construction projects cancelled and delayed in the United Arab Emirates rose to $170 billion in August indicating that the battered real estate sector in the Gulf state is still some way from a recovery.

The increase of 13% compared to the previous month is revealed in the MENA Construction Projects Tracker Report from Citigroup.

It also shows that the UAE accounted for 56% of the total cancelled or delayed projects for the main regional markets. ‘Unsurprisingly cancellations in the UAE relate predominantly to real estate,’ the report said.

The UAE's property boom ended in 2008, with house prices in Dubai plunging by up to 60%, forcing many developers to abandon projects.

Source: PropertyWire.com

S&P predicts further property price falls in Gulf region

admin — 24/08/2011 07:20:00

Property prices and rents in the Gulf will continue to fall in the second half of 2011, according to the latest outlook report on the region from ratings agency Standard and Poor's.

The rating agency said property developers in oversupplied markets, such as the United Arab Emirates, are likely to continue to scale back development activities in favour of rental and management of existing property stocks.

As markets in the GCC region mature, S&P said it expected to see greater emphasis on urban regeneration with ‘a pronounced shift away from high end residential development toward affordable housing’, particularly in Saudi Arabia.

Despite property price falls of up to 60% in some markets, in the UAE, Qatar, and Bahrain for example, between late 2008 and 2010, we expect capital values and rents to continue their largely downward slide in 2011,’ said S&P credit analyst Tommy Trask.

Source: PropertyWire.com

Dubai house prices 'set to fall 10pc more'

admin — 21/07/2011 07:42:00

Dubai's housing market still has nearly a third too much supply and prices will plummet by another 10 percent, deepening a three-year rout to nearly 60 percent from its peak, a Reuters poll showed on Wednesday.

Rents and prices in Dubai's once-booming property market have been in a free-fall over the last few years, pummelled by the global financial crisis, ensuing global slowdown and the Gulf state's own debt crisis.

Residential property prices in Dubai, which boasts of the world's tallest building and man-made islands in the shape of palms, will fall 58 percent from a peak in the third quarter of 2008 according to the median estimate of 11 banks, investment firms and research institutions.

"Despite increasing transaction volumes and improvement in economic activities, property prices in Dubai are expected to be under pressure due to oversupply," said Sajeer Babu, an analyst at National Bank of Abu Dhabi.

Source: TradeArabia.com

Growing supply 'brings Abu Dhabi rents down'

admin — 19/07/2011 06:34:00

Growing supply, combined with a cutback in government spending on economic diversification and infrastructure upgrade, will put additional downward pressure on rents and real estate prices in Abu Dhabi, said a report.

Declining rents and increased vacancy will however have a positive impact on demand as Abu Dhabi becomes more cost competitive and higher quality real estate comes on stream, said the ‘Abu Dhabi Real Estate Market Overview – Q2 2011’ from Jones Lang LaSalle, a leading real estate investment and advisory firm.

The report illustrates that new supply deliveries were limited in Q2, but this is temporary because a significant supply pipeline remains for each real estate sector in Abu Dhabi.

The report also outlines a range of government initiatives, which Jones Lang LaSalle concludes will have a positive impact on demand and are a further step towards the maturation of the real estate market.

Source: TradeArabia.com

Apartment rents fall 3% in Dubai

admin — 11/07/2011 12:04:00

Apartment rents in Dubai fell 3% in the second quarter of the year while rents for villas remained stable, according to a new report by Asteco.

Rents are expected to continue to fall as more supply comes onto the market, the property consultant said.

"Rental rates are expected to decrease slightly in the short-to-medium term consistent with the delivery of new villa developments such as Jumeirah Park, which is expected to be partially handed over by the end of 2011," said Asteco.

Source: AME Info

UAE's $3bn aid package to Egypt for housing and small firms

admin — 07/07/2011 07:22:00

The UAE's US$3 billion aid package to Egypt will be funnelled towards small businesses and housing projects as the country looks to the region for assistance ahead of international donors.

The package will take the form of a $1.5bn (Dh5.5bn) fund for small and medium-sized enterprises, $750 million for infrastructure and housing projects and $750m more in "soft" loans for various projects, the state news agency WAM reported on Monday.

It follows a meeting between Sheikh Mansour bin Zayed, Minister of Presidential Affairs and Deputy Prime Minister, and Essam Sharaf, the Egyptian prime minister, in Abu Dhabi this week. It was his first visit to the capital following the uprising that ousted president Hosni Mubarak in February.

The interim government estimates Egypt needs between $10bn and $12bn in international funding to plug a budget gap following the political turmoil that led to a sharp decline in economic output, employment and tourists.

Source: TheNational.ae

Dubai's Index wins tall building award

admin — 20/06/2011 11:52:00

Index, the 80-storey building developed by Union properties in Dubai, has clinched the '2011 Best Tall Building' award for the Middle East and Africa region from the Council on Tall Buildings and Urban Habitat (CTBUH).

The award will be presented at the CTBUH's 10th annual awards dinner which will held on October 27 at the Illinois Institute of Technology in Chicago, US. Index now finds itself in the running for the 2011 Best Tall Building Worldwide Award, as the regional win places it among the four nominees for the overall prize.

The '2010 prize for Best Tall Building Worldwide' was awarded to the Burj Khalifa in Dubai. 'This is a major recognition from industry peers from around the world, and a shining testament to the outstanding design and quality of this most unique project,' said an elated Union properties chairman Khalid bin Kalban.

Source: Trade Arabia

Jeddah real estate market 'booming'

admin — 13/06/2011 12:01:00

The real estate market in Jeddah is booming thanks to Saudi government’s recent SR500 billion ($133.3 billion) financial stimulus package and massive public sector infrastructure investments, according to property expert Jones Lang LaSalle (JLL).

Opportunities are abounding in Jeddah’s residential sector as the market is expected to continuously experience rent and sale price appreciation, the JLL said in its latest ‘Jeddah City Profile – June 2011.’

An additional 25 million sq m of land offered by the Jeddah Municipality for future largescale residential developments will encourage market activity by mitigating one of the key barriers to development: the high cost of land, the report added.

Expanding the supply of land available for development can help address inventory and affordability issues to meet the growing housing demand from both the local and expatriate population, the JLL stated.

Source: Trade Arabia

Dubai passes property supply peak

admin — 06/06/2011 11:41:00

Jones Lang LaSalle (JLL) has said Dubai's real estate is likely to witness some stability in capital values, while Abu Dhabi will see highest value declines over the next 12 months, Emirates 24-7 has reported.

"While Dubai is already passed the supply peak, Abu Dhabi is still approaching the peak of the supply cycle. Thus, Abu Dhabi rents and sale prices are expected to continue to decline in the coming year," the property consultancy said in its 2011 Middle East and North Africa (Mena) Real Estate Investor Sentiment survey.

Source: AMEInfo

UAE firm to develop properties worth $600m in Poland

admin — 16/05/2011 11:08:00

UAE-based Tharaa Holding has signed a memorandum of understanding with Poland's Military Property Agency (MPA) to develop and promote property worth $600m in Poland, Khaleej Times has reported.

As part of the MoU, Tharaa Holding through its development company Hadara, will develop selected land owned by MPA after studying the feasibility and valuations of the project.

The company will also assist MPA to promote its properties in the Middle East through its real estate brokerage arm RichVille Real Estate which operates out of Dubai.

Source: AMEInfo

Budget hotel revolution predicted for Middle East

admin — 06/05/2011 07:00:00

A leading property consultancy has said that the Middle East could undergo a budget hotel revolution, as the Arabian Travel Market (May 2-5) gets underway in Abu Dhabi.

According to reports from ArabianBusiness.com, analysis from Jones Lang LaSalle predicts that rapid growth of low-cost hotels could be set to shake up the tourism market, in a region already scrambling to cater for increased demand.

The Saudi cities of Medina and Makkah, which have seen several luxury hotel openings recently and already cater to millions of religious pilgrims each year, are expected to become low-cost hubs.

"I see huge potential [for budget hotels] especially in places like the holy cities in Saudi Arabia; phenomenal potential," the website quoted Jones Lang LaSalle's Thierry Loué as saying.

Source: The Independent

Hyatt announces opening of two Abu Dhabi properties in second half of 2011

admin — 05/05/2011 04:24:00

With a wide range of world-class business and leisure facilities, both Hyatt hotels are located just minutes from the city centre and Abu Dhabi International Airport.

Abu Dhabi's Tourism Authority has said that it expects to receive 2.7 million visitors by 2012, with Abu Dhabi Corniche, Emirates Heritage Village, Sheikh Zayed Grand Mosque, Ferrari World Abu Dhabi and Yas Marina Circuit featuring prominently as key attractions.

"Abu Dhabi offers travellers year-round sunshine, pristine sandy beaches, world-class meeting facilities and traditional Arabian culture. Hyatt hotels in Abu Dhabi will be welcoming business and leisure guests alike as the two first properties will be opening in the second half of 2011. While Hyatt Capital Gate will be the capital's ideal premium business address, Park Hyatt Abu Dhabi Hotel and Villas will offer guests a range of leisure activities located on a tranquil island in Abu Dhabi," said Thierry Bertin, Vice President Worldwide Sales - South West Asia, Hyatt International.

"Both our hotels are situated along the beautiful turquoise waters that surround Abu Dhabi and offer stunning views of the city's natural coastline. While Park Hyatt Abu Dhabi Hotels and Villas offer an escape from the city, Hyatt Capital Gate is in itself, an escape within the city," continued Bertin.

Source: AMEinfo.com

Dubai aims to become world's top airport for international passengers

admin — 04/05/2011 13:27:00

Dubai International Airport officials say they expect to handle 98.5 million passengers annually by 2020.

The Associated Press adds "Dubai International Airport is already the world's fourth busiest in terms of international passengers. Dubai Airports CEO Paul Griffiths said Tuesday he expects it to push London Heathrow from the No. 1 spot within four to five years."

AP says fast growth by Dubai-based carriers Emirates and FlyDubai are helping fuel the airport's aggressive projections.

Meanwhile, Dubai is currently building a second airport -- Dubai World Central-Al Maktoum International -- though its opening for passenger service has been delayed until 2012.

Source: USA Today

Mortgage facility 'helps Abu Dhabi realty market'

admin — 20/04/2011 06:05:00

The easy availability of mortgage financing had helped sustain Abu Dhabi’s property sector amidst the global economic crisis, said Masood Al Awar, CEO of Tasweek Real Estate Marketing and Development.

Al Awar's remarks came while delivering a speech on mortgaging’s impact on the growth of Abu Dhabi’s real estate business on the second day of 'Cityscape Abu Dhabi,' the local edition of the region's premier real estate investment and development event.

He was discussing the development of regulatory frameworks for the issuance of mortgages and identified legislative changes needed to enhance the local mortgage system.

Al Awar also evaluated criteria for ensuring sustainable mortgage financing and talked about the benefits of a robust housing financing system.

Source: TradeArabia

10,000 homes to enter UAE market this year

admin — 14/04/2011 10:36:00

Individuals looking to purchase property in the UAE could be interested in the latest comments from an official in the region.

Sultan Butt bin Majran, director general of the Dubai land Department, has denied rumours that the real estate market is to be flooded with tens of thousands of new homes.

According to authorities in the region, only 10,000 new houses would be completed this year. "News that between 40,000 and 50,000 housing units would be ready in 2011 are not correct," the sultan said. "We expect about 10,000 houses to enter the market this year but they will not put any pressure because the market is able to absorb them given the ongoing recovery in the property sector."

Source: Property Showrooms

Abu Dhabi rents drop 8 per cent in Q1

admin — 13/04/2011 07:09:00

The apartments and villa rents in Abu Dhabi fell 8 per cent in the first quarter, signaling likely further decline this year as new supply hits the market, said property management firm Asteco in its latest report.

The rents in UAE capital continued their downward trajectory in the first three months of 2011, with declining trends continuing from last quarter, Asteco said in the latest Q1 2011 report.

“On the main island, turnover is slow within the lower quality buildings, where tenants are taking advantage of ‘capped’ low rental agreements. Among those that have become available, rents have reduced significantly and this is a trend we expect to become more pronounced,” remarked Elaine Jones, CEO of Asteco.

The report finds villa rents have fallen 8 per cent over the quarter, declining further from the 5 per cent drop in the last quarter, with falls especially pronounced within lower quality villas, Jones added.

Source: TradeArabia

UAE 'safe haven for ME property investors'

admin — 13/04/2011 04:11:00

The recent events within the wider Mena region have encouraged many property investors and funds back to the UAE market, which has emerged as the regional safe haven, said a real estate expert Chesterton.

The increased levels of interest from investment clients in the first quarter suggests strong underlying, long term confidence in the UAE’s real estate market, said Simon Gray, managing director of Chesterton’s Mena operations.

This has shown that despite the effects of the global downturn on property prices, there remains a strong fundamental confidence in the market and its medium- to long- term prospects, he noted.

“The general consensus is that the Dubai markets are close to bottom of the downward cycle as supply reduces across all asset classes over 2011, whilst Abu Dhabi is still witnessing a strong supply chain meaning that both cities are witnessing continued downward pressure on both price and rental levels, giving investors further pause for thought,' he added.

Source: TradeArabia

Dubai the worst performing housing market in the world

admin — 05/04/2011 12:07:00

Over the past six months, the desperately tumultuous housing markets of Greece, Spain and Portugal have all successfully surpassed Dubai’s rock bottom real estate sector, according to a survey published by property consultancy Knight Frank.

Although global house prices have increased by 2.8 per cent in the last six months, Dubai has seen a dismal decline of 10.1 per cent, compounded by last year’s drop of 6.1 per cent. This decrease is slightly below Jones Lang La Salle’s projected figure of 12 per cent, however it stills demonstrates the lingering frustration of the emirate’s property sector.

In contrast to other nascent markets where capital inflow from the U.S Federal Reserve has propelled investment in property, the decline is severe. Additionally, petrodollars in the Gulf region have failed to boost prices in the Dubai real-estate market.

Hong Kong was the best performing market of the last six months, with an increase of 10.1 per cent and an overwhelming rise 20.1 per cent in the last year. The combined markets of Shanghai and Beijing have also seen an impressive growth of 15.3 per cent in the year.

Source: Property Report

Dubai apartment rents plummet by 30%

admin — 23/03/2011 12:03:00

Apartment rents in some of Dubai's most popular areas have fallen by about 30% in the last 12 months but villa rents are largely stable, it has been revealed.

The latest figures from the emirate’s Real Estate Regulatory Agency show that apartment rents in Dubai Marina , Palm Jumeirah , Discovery Gardens, and Jumeirah Beach Residences have all seen significant falls.

Prices for a one bed apartment in Discovery Gardens, which houses about 41,000, currently stand at AED40,000 to AED50,000 in the latest index, compared to AED55,000 to AED65,000 a year earlier.

The Rental Index is designed to give landlords and tenants in the emirate a guideline to pricing rents when negotiating contracts. The index is presented in the form of an online rent calculator on RERA's website.

Dubai Marina, which is consistently voted the most popular for would be buyers and tenants, also saw a big fall in rents. Rents for a studio in the Marina start at AED35,000, down AED10,000 compared to the March 2010 index, while minimum rents for a one bed have fallen more than 30% to AED45,000.

Source: NuWire Investor

London, Germany top markets for holiday rental

Sarah Kendell — 04/03/2011 11:27:00

According to data from HomeAway.co.uk, in 2010 Dubai's holiday rentals market showed definite signs of recovery, with an increase of 5% in booking enquiries for the year following large decreases in 2008 and 2009. The emirate was among the top ten most enquired about cities in the second half of the year and owners listing on the site also reported huge increase in business.

Germany, a new favourite for ski?

According to the Q4 2010 report from the European Travel Commission, Germany was one of the best performing markets in 2010 and this trend is mirrored on HomeAway.co.uk. The country's economic stability is increasing its popularity with residential investors and buyers are now focussing on Germany's stable rental potential.

Interest from travellers is also strong. The country climbed from the 12th most popular in the second half of 2009 to the 9th most popular in 2010 on HomeAway.co.uk. What's more, Germany appears to be a new favourite among ski enthusiasts too. The mountain resort town of Garmisch-Partenkirchen in Bavaria ranked sixth out of the top ten most popular ski destinations, coming in above Samoens, Tignes and Meribel in France, and Haute Nendaz in Switzerland.

London calling - the Olympic effect

With the 2012 London Olympics set to attract millions of visitors to the capital, savvy travellers are starting to book well in advance. On HomeAway.co.uk enquiries started to pick up towards the end of 2010 and there was a huge year-on-year growth in enquiries for the Olympics dates as at the end of January 2011 compared to January 2010 (+3,804%).

Tim Boughton, UK General Manager, HomeAway.co.uk said: "The switch from hotels to holiday rentals has been steadily increasing, with particularly high spikes in demand around major sporting events. For the 2010 World Cup in South Africa, many visitors sought out holiday rental properties as an alternative to a hotel, which meant the average weekly income generated per property soared by almost 150 per cent. However, even at this increased rate, holiday rentals still often work out far cheaper than similar standard hotels, making them a highly attractive option for tourists."

Source: HomeAway.co.uk

UAE property investors switch to US market

admin — 04/03/2011 11:04:00

Political unrest and instability in nations such as Tunisia and Libya is expected to act as a boost to the property market in the UAE. The chief investment officer and acting general manager of private banking at Emirates NBD has commented on how situations in MENA countries will positively impact property investment in Dubai.

Gary Dugan explained: "The premium segment of Dubai's property sector is likely to get a boost from capital inflows from some of the countries that are facing political turmoil in the region."

The experts forecast that those with assets in the MENA region are increasingly moving capital towards the emirate, which is recognised as the most secure market in the region.

"Local equities still prove attractive, but investors should wait before buying emerging market equities, which face near-term challenges and equity prices in general are no longer as low as they were. Investors are advised to buy global developed market equities but with care," Mr Dugan added.

Source: The National

Home values in UAE continue to fall

admin — 24/02/2011 12:41:00

The fall in property prices in Dubai is slowing analysts are not expecting any sudden improvement in the emirate’s real estate market. Sale prices fell 1.9% and rents were down 0.7% in January, according to figures from Deutsche Bank.

‘We still do not see any improvement in fundamentals that could trigger a recovery,’ said analysts Nabil Ahmed and Athmane Benzerroug in a note to clients.

‘The supply overhang still looms large, homebuyers still lack appetite, transaction volumes remain anemic, banks remain cautious lenders and international investors are still wary of the UAE property market,’ they added.

Some analysts believe that Dubai property prices, which have already dropped 60% since the peak of the market in 2008, are set to fall another 10% over the next two years as fresh supply floods the market. Neighbouring Abu Dhabi is also expected to see a deteriorating market.

There prices are down 45% and rents and sale prices for Abu Dhabi property will continue to fall across the board during 2011 due to heavy oversupply, according to Jones Lang LaSalle. The property consultancy said that although there have been limited transactions for residential sales, average prices per square foot have now dropped some 45% since their peak in the second quarter of 2008.

Source: Property Community

Abu Dhabi joins Dubai in property market decline

Sarah Kendell — 14/02/2011 12:06:00

Residential property sales in Abu Dhabi fell during the last three months of 2010 and prices are down by up to 12%, according to a new real estate index for the emirate.

The Abu Dhabi Property Index, launched by real estate specialists Cluttons who have had a dedicated Middle East presence since 1976, will benchmark property values in the emirate. It shows that in the fourth quarter of last year freehold villa values in developments such as Al Reef have seen a continuation of falling values of up to 12% from third quarter levels.

It also shows that the private freehold GCC market in areas such as Al Raha Gardens and Golf Gardens have remained relatively robust and the most popular developments in Abu Dhabi for sales are Al Raha beach and Marina Square.

The Index offers comprehensive price data for both villas and apartment sales over the past year. Such information therefore provides one of the most accurate real estate price information tools on the market.

Source: Property Community

Air travel demand bounces back

admin — 04/02/2011 11:04:00

The world started flying again in 2010, according to data released February 2 by airline industry group IATA. Releasing the final figures for last year, the International Air Transport Association said that passenger flights rose 8.2 percent through the year, and planes were slightly (2.7 percent) fuller than in 2009.

The rise comes despite an exceptionally difficult year for airlines in 2010, which saw freak weather, several strikes and a massive ash cloud cause disruption to flights on a scale not seen in recent history.

Nevertheless, all areas of the world saw strong increases in demand, led by the Middle East, where huge new airliners delivered to the likes of Emirates enabled them to fly 17.8 percent more passengers than in 2009. Africa saw a sharp rise in demand of 12.9 percent, although IATA warned that planes in the region are far less full than the industry's average, at just under 70 percent occupancy.

Source: The Independent

Trump's Dubai development scrapped

admin — 03/02/2011 11:43:00

Nakheel has cancelled plans to build the Trump International Hotel & Tower on the Palm Jumeirah in Dubai.

It is now planning to build a shopping mall at the site instead. Ali Rashid Lootah, who became the chairman of Nakheel last March as part of its restructuring, said the developer had put on hold its most ambitious projects as the company completed its restructuring and focused on the "details" of running the largest property developer in Dubai.

The company is also planning to cut service charges on its developments as it renegotiates contracts with suppliers.

Source: AMEinfo.com

Dubai Properties puts Woods development on hold

admin — 01/02/2011 11:28:00

Dubai properties, a unit of Dubai Holding, has said its Tiger Woods residential and golf course project has been suspended due to poor market conditions for luxury developments, Reuters has reported.

The developer had planned the resort with Woods, a former world number one, who was to have designed the golf course.

"This decision was based on current market conditions that do not support high-end luxury real estate. These conditions will continue to be monitored and a decision will be made in the future when to restart the project," the developer said in a statement.

Source: AMEinfo.com

Dubai posts record year for air travel

Sarah Kendell — 31/01/2011 10:46:00

Despite a turbulent year on the economic front and losing much of its credibility to its neighbor Abu Dhabi, Dubai has proved that it can still pack a tourism punch with the release of its airport's passenger figures for last year.

Dubai International Airport announced that 2010 was a record year for passenger traffic, with some 47.2 million people passing through the airport, a rise of 15.3 percent on 2009. In Abu Dhabi, which has invested heavily in promoting itself as a more cultural and varied tourism destination than Dubai, the main airport handled only 11 million passengers, up 12 percent.

The continuing rapid growth of Dubai International Airport appears to have vindicated the decision to build Al Maktoum International, a huge new airport which is scheduled to open to passenger flights in March this year.

It also underlines the growth and rivalry of the countries' respective flag-carriers, Emirates (Dubai) and Etihad (Abu Dhabi), whose hub-based operations account for a sizeable proportion of passengers at both airports.

Dubai property prices set for further fall

Sarah Kendell — 24/01/2011 10:34:00

Dubai house prices, already nearly 60 per cent off their peak, are set to drop another 10 per cent over the next two years as new units are released onto a market awash with supply, a Reuters poll shows.

A property boom in Dubai collapsed at the end of 2008 when it was hit by the global financial crisis and the Gulf state's debt crisis.

Residential property prices in the Gulf state, home to the world's tallest building which has 900 residences, have plunged 58 per cent from their peak in the fourth quarter of 2008, according to the median estimate of 15 banks, investment firms and research institutions.

Prices in Dubai and Abu Dhabi will fall 5 per cent and 10 per cent respectively in 2011, according to the poll, which was taken over the past week. The decline will continue in 2012 with prices in Dubai falling 4pc and in Abu Dhabi by 5pc, according to median forecasts.

Debt-ridden UAE property firm expects return to profit

Sarah Kendell — 19/01/2011 12:26:00

Aldar Properties has said it expects to return to profit this year, confirming guidance given to investors by its chief financial officer, Shafqat Malik, Reuters has reported.

Malik also told investors that the company would get paid in cash in 2011 for most of its assets sold to the government and for the convertible bond sale. This would allow Aldar to repay about Dhs13bn ($3.54bn) in debt over the next three years, Malik told investors.

Aldar said last week it would sell assets worth $1.49bn to the government to meet looming debt obligations.

Abu Dhabi rental prices fall for 2010's final quarter

Sarah Kendell — 11/01/2011 12:25:00

Fresh supply in the Abu Dhabi property market has pushed rentals and leasing rates down by an average of 7 per cent in Q4 with further easing expected this year, according to property management firm Asteco.

The rents in Abu Dhabi continue to drop with mixed fortunes for landlords depending on location, quality and price, Asteco said in its Q4 market report published on Sunday.

The emirate's tenants have started relocating in search of quality and value as apartment leases dropped by 7 per cent and villas witnessed 5 per cent average decline, it added.

Due to the increasing amount of supply, apartment leasing rates have steadily declined over the last three months of 2010, dropping by an average of 7 per cent whereas on-island properties have only reduced 6 per cent during the same period.

Dubai villa prices fall for end of 2010

Sarah Kendell — 11/01/2011 12:14:00

London-based property broker Cluttons has said that villa prices in Dubai have dropped by 5.1% and apartment values fell 2.4% in Q4 2010, compared to the three months previous, Bloomberg has reported.

The broker said that 35,000 homes are expected to be completed in Dubai over the next two years.

"As supply continues to increase, drops in values will be unavoidable," Cluttons said. "We are continuing to see the flight to quality in both the sales and rental markets as the more desirable locations become increasingly affordable."

Middle East buyers driving EU investment

Catherine Deshayes — 23/12/2010 16:36:00

Cash-rich investors based in the Middle East are helping to drive demand for real estate across Europe, including within the burgeoning London commercial property market...

That is according to a newly-released report into investment trends over the course of 2010, which has once again served to provide evidence of an upturn in fortunes within the European commercial property sector.

The newly-published paper notes that Middle Eastern investors alone helped spark a 40 per cent upturn in transactions this year, with the value of deals concluded across the continent in 2010 expected to hit €100 billion.

In particular, investors from the region have been targeting "trophy assets", including iconic buildings in major European capitals, while the report, which has been published by Jones Lang LaSalle, also notes that Qatari investment funds are particularly looking to build on their global commercial property assets, with this trend expected to continue well into 2011.

This comes on the back of the publication of a similar report from Colliers International, which noted that foreign commercial property investment in UK assets continued to pick up over the last month.

Source: www.mellersh.co.uk

Expats keen on Middle East

Catherine Deshayes — 20/12/2010 19:18:00

The Middle East is a promising and attractive place for expats despite the demise of the once traditional expat packages that many now regard as unfair, a new poll reveals...

Just over a third of expats, 35%, said their companies were still giving special expat packages while 44.9% said they were not, according to the survey from Bayt, a leading Middle East job site.

When asked if they thought the days of special GCC packages were over 45.3% replied that they were, some 29.1% no and 25.5 % said they did not know.

‘The figures are interesting because they show that with the current global economic crisis and increasing economic maturity in the region, there seems to be some degree of downward pressure on traditional regional expat packages,' said Amer Zureikat.

Bayt.comThe majority, some 66.4% said that their companies' pay policies depended on nationality, while 21.3% said they were not and 12.3% said they did not know. However, when asked if they considered special packages to be fair, 38.8% of respondents said they were indeed fair, 39.2% said they were not and 22% said they did not know.

‘There seems to be a growing feeling in the region that special packages are unfair. This could be linked to the rise of more qualified and seasoned regional employees who do not feel it is necessary to pay expats more for the same type of work as well as the increased sophistication of regional employers who have embraced global pay policies and practices,' added Zureikat.

When asked what special benefits expats working on their companies received, 21.6% said more pay, 4.7% said more housing allowances, 3.7% said schooling for children, 0.3% said club memberships, 7.5% said plane tickets home, 10.3% said better training and development and 51.8% answered many or all of the above.

Asked what would most induce them to move or stay abroad as expats, 44.7% said improved financial prospects, 31.2% overall lifestyle enhancements, 18.1% career opportunities that don't exist at home, 2.4% health and/or education facilities that don't exist at home and 3.6% said other.

Expats were also asked if their overall life quality had improved since their move and more than half, 54.3%), said yes, 20.6% said their quality of life was the same as at home and 25.2% said it was worse. Some 30.5% said they could save substantially more, 27.9% said reasonably so, 20.6% said marginally more and 21% said they were not saving more.

‘We conducted this poll to chart the region's current expat opportunities and the level of satisfaction current expat employees felt. Our poll showed that in the end, despite the fact that the economic crisis did impact the region, the Middle East is still a promising and attractive place for expats looking for a better quality of life and an opportunity to save money,' concluded Zureikat.

Source: www.expatforum.com

Trouble over $11 million Christmas tree

Catherine Deshayes — 20/12/2010 19:15:00

A luxury hotel in Abu Dhabi which unveiled a Christmas tree decorated with jewels valued at $US11 million has decided to put the record straight against criticism of having gone over the top...

The Emirates Palace hotel said it regretted "attempts to overload the tradition followed by most hotels in the country", in a statement quoted in Gulf News on Sunday.

Gulf News said the hotel stressed this was "within the framework of the UAE's policy which is based on the values of openness and tolerance".

Emirates Palace stressed that the jewels were on loan from an Abu Dhabi gallery which had paid all the costs of making and decorating the tree. The jewels would be recovered by their owner at the end of the festive season.

"The hotel is just a venue for exhibiting the tree," it said.

The tree, inaugurated on Wednesday, holds a total of 181 diamonds, pearls, emeralds, sapphires and other precious stones, said Khalifa Khouri, owner of Style Gallery which provided the jewellery.

Emirates Palace hotel general manager Hans Olbertz said the tree, which he described as the "most expensive Christmas tree ever", will probably be an entry into the Guinness Book of World Records.

The 13-metre faux evergreen, located in the gold leaf-bedecked rotunda of the hotel, is not the first extravagant offering from the $US3 billion Emirates Palace.

The hotel in the oil-rich Gulf emirate where the local population is Muslim, bills itself as a seven-star establishment and has a package for a week-long stay priced at $US1 million.

The package comes with a personal butler and a chauffeur-driven Maybach luxury car as well as a private jet available for trips to other countries in the region.

Source: AFP

Property management ‘key' in UAE

Catherine Deshayes — 13/12/2010 18:07:00

Successful property management is the key to 100% occupancy levels in the United Arab Emirates going into 2011, it is claimed...

A short term view will lead to falling standards and loss of income and it is cheaper to maintain a building well than make repairs in the future, according to a report from Cluttons Middle East.

Cluttons, the real estate specialist that has enjoyed a dedicated Middle Eastern presence since 1976 and with the largest footprint in the region, urges property owners to invest in professional property management services in the soft market.

In a downward cycle of rental income the temptation for landlords is to reduce costs in order to maintain their income. However, this short term view will lead to falling standards in the property ultimately resulting in vacancies and additional loss of income, it says.

Cluttons enjoys a strong relationship with the Royal Institution of Chartered Surveyors, offering a wide range of property services, from property management, agency and strategic consultancy services across the commercial and residential sectors.

Its property management arm is one of the leading practices in the UAE, with offices in Dubai, Sharjah and Abu Dhabi. Properties under Cluttons management are reporting high occupancy levels, with 100% occupancy in buildings such as the Bahwan Towers and Mankool Tower, Dubai and East Tower in Sharjah.

‘The Cluttons team is committed to helping property owners maximise rental yield. Owners can actively affect the value of their buildings through their decision on design, management and most importantly levels of maintenance and customer service. Effective management is key. We are noticing many to let signs creeping up on previously full buildings where corners are being cut,' said Lesley Preston, director of Cluttons in the Middle East.

‘The build it and they will come approach will not work in this market. Tenants have a choice of properties and professionally managed buildings will secure and retain tenants - enhancing the value of the building. It is cheaper to maintain a building well than it is to repair it once defects take hold,' she added.

The advice comes as it was revealed that rents for some firms at the Dubai International Finance Centre business park could drop by as much as 50%. DIFC, the tax free business park for financial services companies, has announced a new matrix of rents.

Effective from January, the rents will run from AED160 to AED280 per square foot, depending on the size of the office and its location within DIFC. Officials at the DIFC Authority said that they were reluctant to give an official range for the drop in rents, as it varied from client to client.

‘It is difficult to assess the difference because the methodology in terms of implementing the rates is different. We are using a matrix system that varies in terms of location, building and size, whereas before it used to be a rate across the board,' said Abdulla Al Awar, chief executive officer of the DIFC Authority.

Source: www.propertywire.com

New visa regs for UAE expats

Catherine Deshayes — 10/12/2010 12:30:00

New regulations are being introduced in the United Arab Emirates in January for expat private sector workers that will reduce the length of visas and work cards...

As part of a plan to streamline the labour card and visa system the length of time covered is being reduced from three years to two years.

According to a statement by Humaid Bin Deemas, acting director general of the Ministry of Labour, the UAE Cabinet has reduced the validity of labour cards of all categories of people who work in the private sector from three years to two years in a bid to regulate the labour market.

Officials at the Labour Ministry confirmed the new rules will come into force next month. ‘As the labour card will be for only two years, naturally the residency visa will also be for two years,' he explained.

The Cabinet decision aims to streamline the system for all work categories. Currently drivers, domestic helpers and other similar categories are entitled to two year labour cards and residence visas by the Department of Residency and Foreigners Affairs, while other professions get three year labour cards and three year residence visas.

Major General Nasser Al Awadi Al Minhali, assistant undersecretary at the ministry's Naturalisation and Residency Affairs department, confirmed that the new rules will affect all expats.

‘When we get an application for a residence visa we look at the validity of the labour card issued by the Ministry of Labour. If it is for two years then we will issue a two year residence visa,' he explained.

He also revealed that the ministry is currently considering ‘significant' amendments to the current law which deals with residency and foreigners' affairs.

Bin Deemas said the decision will help private sector employers to save Dh678 million annually as ministry statistics show that 70% of labour cards are cancelled before two years have passed.

‘The changes will achieve certain flexibility in the relationship between employers and employees. It would give both parties the ability to end the relationship without big losses for the employers and in a way that will not violate the labour laws,' he added.

It is also expected to help enhance competitiveness and movement in the job market. There are no changes planned to the tourist visa which is valid for one month and can be extended for another month without leaving the country.

Source: www.expatforum.com

London's most iconic hotels to be sold to Middle East

Catherine Deshayes — 16/11/2010 20:16:00

Some of London's most iconic hotels could be sold to Middle Eastern investors who are keen to snap up luxury UK brands, according to a travel industry report...

Claridge's, Grosvenor House, the Berkeley and the Connaught are all possible targets for foreign investment that could launch London as a new ‘luxury hotspot'.

The prediction is part of a WTM Global Trends Report, released at World Travel Market, an annual travel industry conference which is currently being held in London.

Caroline Bremner, a spokesperson for market research company Euromonitor International, which carried out the study, says: ‘The UK is ripe for investment from the Middle East with attractive property prices and the value of the pound.

‘We anticipate visitors from Saudi Arabia and the United Arab Emirates to the UK to increase significantly in the next four years.'

The Qatari royal family recently bought Harrods for £1.5bn and a Middle East consortium is behind the construction of the £2bn ‘Shard of Glass' tower.

The 1000ft building near London Bridge will house offices, apartments and the first purpose-built five-star hotel to land on the London map in more than a decade.

The pound's current weakness against the US dollar, coupled with the fact that Middle Eastern organisations are exempt from paying Stamp Duty and Capital Gains Tax, has led to an increase in investment in the UK from the region.

There are more than 400,000 millionaires in the Middle East, with a combined wealth of £950 billion.

Last year, Middle East visitors spent £810 million in the UK and the figure is expected to rise next year.

The UK Border Agency is expanding its Visa Application Centres in Abu Dhabi, Dubai, Riyadh and Jeddah to cope with increased demand.

Meanwhile, London has been voted the ‘most welcoming' European capital.

The city was voted the friendliest out of six major European capitals in a ‘mystery shopper' poll.

London scored highly when it came to the quality of its bus tours, tourist offices, taxis and airport signage.

And, possibly to the surprise of those frequently held up by Tube delays, London got top marks for its city centre public transport.

However, it fared badly when it came to scoring airport tourist information and how welcoming its restaurants and museums were.

London, Paris, Amsterdam, Madrid, Rome and Berlin were subject to a 24-hour visit from mystery shoppers who rated the cities on the basis of the welcome given to visitors in 11 categories.

London came top, with Paris and Amsterdam joint second, Madrid fourth, Rome fifth and Berlin sixth.

Source: www.dailymail.co.uk

Rents falling in UAE

Catherine Deshayes — 14/11/2010 19:36:00

Individuals interested in buying real estate in the UAE may be interested in the latest data from a real estate firm in the country...  

According to Landmark Advisory, oversupply in the market has led to a number of landlords of new units undercutting market rates.  This has meant that rents in the region have fallen by 38 per cent in some of the emirate's most popular residential areas.  "We estimate that average vacancy rates in Dubai are currently 15 to 18 per cent but will increase to 19 to 24 per cent by 2012," Jesse Downs, director of research and advisory at the company, explained.  "Even considering the Abu Dhabi commuter demand, it is clear that average rents in Dubai will continue on a downward trajectory." 

Indeed, she confirmed that some developers and landlords are drastically reducing rents by up to 20 to 30 per cent below current market rates in order to achieve higher occupancy.  Individuals interested in buying real estate in the UAE may be interested in the latest data from a real estate firm in the country.  According to Landmark Advisory, oversupply in the market has led to a number of landlords of new units undercutting market rates.  This has meant that rents in the region have fallen by 38 per cent in some of the emirate's most popular residential areas.  "We estimate that average vacancy rates in Dubai are currently 15 to 18 per cent but will increase to 19 to 24 per cent by 2012," Jesse Downs, director of research and advisory at the company, explained. 

"Even considering the Abu Dhabi commuter demand, it is clear that average rents in Dubai will continue on a downward trajectory."  

Indeed, she confirmed that some developers and landlords are drastically reducing rents by up to 20 to 30 per cent below current market rates in order to achieve higher occupancy.

Source: www.propertyshowrooms.com

Registering UAE property 'easiest in world'

Catherine Deshayes — 08/11/2010 19:59:00

The UAE leads the world on the ‘ease of registering property' indicator, part of a new World Bank report that ranks 183 countries globally on key aspects of business regulation for domestic firms...

In the past year, governments in 117 economies carried out 216 regulatory reforms aimed at making it easier to start and operate a business, strengthening transparency and property rights, and improving the efficiency of commercial dispute resolution and bankruptcy procedures, according to the report titled Doing Business 2011: Making a Difference for Entrepreneurs, the eighth in a series of annual reports published by IFC and the World Bank.

Registering property is one of the fundamental requirements for starting and running a business in any part of the world, and it is easiest and speediest to register property in the UAE, the report reveals. "Ensuring formal property rights is fundamental," the report maintains. "Effective administration of land is part of that. If formal property transfer is too costly or complicated, formal titles might go informal again," it said.

In that respect, investor protection is high on the agenda in the UAE, with just a single procedure required to register property in the country, compared with the regional average of six procedures.

Moreover, the time taken to register a property in the UAE is just two days - the least in the world. In comparison, the regional average to register property is 32.5 days, which is again the least amongst all the regions in the world.

Time taken to register property in other regions of the world averages higher than the Mena region, with registration period averaging 86.7 days in East Asia and Pacific region and a mind-boggling 99.8 days in South Asia. At 32.7 days, even the developed OECD countries have a higher average than the Middle East and North Africa (Mena) region.

In addition, the cost of registering property in the UAE is also very competitive, according to the report, amounting to two per cent of the property value, compared with the regional average of 5.7 per cent.

"Doing Business records the full sequence of procedures necessary for a business to purchase a property from another business and transfer the property title to the buyer's name," the report said. In the past six years, 105 economies undertook 146 reforms making it easier to transfer property, it added.

"Globally, the time to transfer property fell by 38 per cent and the cost by 10 per cent over this time. The most popular feature of property registration reform in these six years, implemented in 52 economies, was lowering transfer taxes and government fees," the report maintained.

Overall, the report highlights that, in the past year, 11 of 18 economies in the Mena region adopted a total of 22 business regulation reforms to create opportunity for domestic entrepreneurs.

Trade facilitation was high on the priority list. Six economies in the region, including the UAE, modernised customs procedures and port infrastructure - Bahrain, the Arab Republic of Egypt, Saudi Arabia, Tunisia, the United Arab Emirates, and West Bank and Gaza. Also popular was improving credit information systems, which occurred in the Islamic Republic of Iran, Jordan, Lebanon, the Syrian Arab Republic, and the UAE.

Lauding some of the steps undertaken by the UAE during the past 12 months, the World Bank report said: "The UAE enhanced access to credit by setting up a legal framework for the operation of the private credit bureau and requiring that financial institutions share credit information."

It added: "In trade, document preparation was streamlined, and the launch of Dubai Customs' comprehensive new customs system, Mirsal 2, reduced the time required for trading." Globally, for the fifth year running, Singapore leads in the ease of doing business, followed by Hong Kong SAR China, New Zealand, the United Kingdom, and the US.

Among the top 25 economies, 18 made things even easier over the past year, the report said. The UAE is ranked 40th in the world, out of 183 economies, and third in the region, out of 18 economies, behind Saudi Arabia (global rank: 11) and Bahrain (28).

Source: www.emirates247.com

Abu Dhabi launches new price index

Catherine Deshayes — 29/10/2010 11:48:00

Residential property prices in Abu Dhabi have fallen by 15% in the first three quarters of 2010 compared to the same period last year, according to a new property index being launched in the emirate...

The new Reidin.com data is the first in Abu Dhabi to be based on the valuations and listings of property and follows a successful launch in neighbouring Dubai.

According to property professionals it represents a new era and shows how the emerging real estate markets in the Middle East are maturing as they provide accurate and frequent data that can be relied on.

Full details will be released when the new index is published for the first time but company chief executive officer Ahmet Kayhan said that the price decline was witnessed across all the areas of the capital.

The real estate information company has used property agents to collate data for the index since the Abu Dhabi Land Department currently doesn't have the actual registrations from freehold areas.

Last week, Reidin.com said sale prices of apartments and villas in Dubai fell 2.3% in September compared with the previous month. The September sales price index showed a year on year decrease of 4.86% compared with September 2009.

Kayhan believes property prices in Dubai have reached the bottom, but is uncertain where the floor lies in Abu Dhabi.

‘I believe the Dubai market has already found the bottom. The numbers are showing the same thing as well as our forecast analysis. However, where is the bottom for Abu Dhabi is the question? Anyone who got in at the peak lost a lot of money, but who hasn't got in has a great opportunity,' he added.

Apartment prices fell by 2.435 while villa prices dropped by 2.4%, the Reidin.com index shows. However, the company said there was a sense of optimism as prices of smaller and larger apartments rose moderately during the month.

Prices for apartments of 50 square meters and under rose by 0.77% last month compared to August but they are down 13.37% year on year. Meanwhile, apartments of 151 square meters or more rose by 0.86% month on month but are still down 5.74% year on year.

Source: www.propertywire.com

World's tallest building 90% empty

Catherine Deshayes — 27/10/2010 22:27:00

Nine months after Burj Khalifa opened with a massive fireworks and light show, 90 percent of the apartments in The World world's tallest building are empty, a Dubai agent says...  

With only about 75 of the 900 apartments in the tower occupied, asking rents in the tower have fallen almost 50 percent, Better Homes sales adviser Laura Adams told Gulf News.

Studio apartments are now available for about $1,800 a month, down from $3,000, while two-bedroom units once priced at $7,100 a month now rent for about $4,300.

Interested parties "call every few days and go for a viewing," apartment owner Imad Ben Khadra told a reporter for Time.

"We got some offers [from prospective tenants], but nobody confirms."  The Moroccan expatriate bought two 1,000-sq.-ft. one-bedroom apartments in 2008 for about $950,000 each, according to the report.  Another owner, Varun Chaudhary, told Time he is confident the market will return.  "These properties will recuperate faster than other properties because it's an icon, because it's only one in the world," he says.

"You just have to say 'Burj Khalifa.' That's the address; you don't have to explain. It's a style statement in itself."  Meanwhile, the chief executive of Nakheel, the developer subsidiary of Dubai World, says the emirate is ready to absorb the oversupply of residential property.  "The general oversupply will be cleared in three to five years and will be driven by the economic growth," Nakheel c.e.o. Chris O'Donnell told Arabian Business. "Things can happen to cause oversupply to be removed fairly quickly. Our view is based on what we are seeing in the market."

Source: www.internationalpropertyjournal.com

UAE projects face long wait for finance

Catherine Deshayes — 26/10/2010 20:40:00

Real estate development projects in the UAE are facing a long wait in gaining finance, with Dubai in particular unlikely to receive much in the near future, as banks remain very selective in their financing, according to executives at the Reuters Middle East Investment Summit...

Sameer al Ansari, chief executive at investment bank Shuaa Capital, said: "Banks are still reluctant to lend on real estate. We see a slow return to very selective mortgage lending and where we see it, it is lending where there is very limited risk (but) major real estate lending by the banks ... I don't see that coming."

House prices in Dubai have fallen around 60% from their peak in 2008, which has been largely due to oversupply, which Colliers estimates to be around 20%.

Abu Dhabi , the UAE capital, has fared better than Dubai during the downturn, with 2011 seen as another year of consolidation, as developers focus on the completion and handover of projects.

Ziad Makhzoumi, chief financial officer of Arabtec, said: "In Abu Dhabi there were lots of projects that were suspended and there were many projects that were re-tendered, but very few have been awarded."

Source: www.property-investor-news.com

Nakheel launches new Dubai projects

Catherine Deshayes — 25/10/2010 18:43:00

Nakheel, the debt laden real estate arm of state owned conglomerate Dubai World, plans to resume work on short term residential projects by the end of October, it has announced...

In the economic downturn a huge number of projects in Dubai have been put on hold and cancelled. Now Nakheel says it will re-start construction work at Al Furjan, Jumeirah Village, Jumeirah Park, Jumeirah Heights Clusters, Veneto, Badhrah, Jumeirah Islands Mansions and International City.

It amounts to around AED7 to AED8 billion worth of work and will be welcomed by the real estate and construction industries in the emirate.

‘It is going to be very positive for the market. These projects aren't going to be ghost towns but are going to be completed. We have customers lined up and ready to move into these projects as we complete them,' said Chris O'Donnell, Nakheel chief executive officer.

The firm is also planning expansions of its two existing Dubai malls, Dragon Mart and Ibn Battuta, and to expand its retail portfolio with up to five malls.

‘Dragon Mart has continued to be incredibly successful in this downturn. The physical number of people coming through and actual dirhams spent has increased in the last two years. Ibn Battuta mall is the same,' O'Donnell explained.

The new malls, to be launched next year, will be based in existing developments such as Discovery Gardens and Jumeirah Village. The retail centres, which are currently in the design stage, will include supermarkets and specialist retail stores.

‘The key focus is to finish the restructuring, get the eight projects back up and running and then the malls will come next year,' he said. Nakheel expects to finish its debt restructuring by the end of the year.

Nakheel has suspended a number of mega projects in the wake of the property crash, including its ambitious offshore developments Palm Jebel Ali and The Universe. The firm is at the heart of the financial problems suffered by its parent company Dubai World, which last November asked to renegotiate more than $24 billion of debt.

The Universe, which was launched in 2008, is one of the most ambitious in the world, comprising a multimillion dollar island development located off Dubai's coastline. Work on Palm Jebel Ali, which is around 50% larger than Palm Jumeirah, began in 2002.

O'Donnell confirmed that neither projects are likely to be revived in the short term but the company is retaining the designs. ‘The thing about Dubai is, never say never,' he said.

The main difficulty for many developers if financing as lending for real estate projects has more or less dried up in Dubai. Large scale lending to real estate projects is not expected to revive for some time as banks remain extremely reluctant to lend in this sector.

Source: www.propertywire.com

Middle Eastern investors hitting the high notes

Catherine Deshayes — 23/09/2010 10:24:00

Middle Eastern investors remained the second largest inter regional buyers of commercial real estate during the first half of the year, according to a recent report...

Investors in the region also doubled their investments in foreign properties between January and June this year, compared to the same period in 2009, the report from Jones Lang LaSalle shows.

Global Funds, which raise capital in multiple regions, were the most active inter regional purchasers, while investors in the United States increased their investments by 48% year on year.

Jones Lang LaSalle also said that the upturn represents a general pick up as confidence returns to the market.

‘The rise in cross border transaction volume also shows a real estate return in the major markets,' said Steve Collins, managing director, Americas, International Capital Group.

According to the report, global commercial real estate transactions for the same period almost doubled. This was ‘underpinned by a return to pre-crisis levels of cross border investment,' the report says.

Cross border investment is when both the purchaser and the vendor originate from the region where the asset is located. While inter regional investment is when all parties involved originate from outside the region where the asset is located.

Total global commercial real estate investment totalled $132 billion for the first half of 2010, compared to $76 billion for the same period in 2009.

However, the outlook is still precarious. According to Arthur de Haast, head of the International Capital Group at Jones Lang LaSalle, transaction volumes might not continue to grow at the levels seen in the first half of the year due to mixed economic news and longer transaction processes due to investor due diligence.

However, full year volumes will be between $275 and $300 billion for 2010, significantly ahead of 2009 at $209 billion, with cross border investors continuing to be very active, he added.

Meanwhile, Kuwait has agreed on a $104 billion support package for the country's real estate market to finance a string of development projects, with the funding to be supervised by the Central Bank.

The new package is designed to help local real estate firms, as well as boost confidence in the banking system in order to ensure the completion of key projects.

Source: www.propertywire.com

Middle priced properties 'best bet' in Middle East

Catherine Deshayes — 23/08/2010 07:47:00

Developers in the Middle East and Gulf region need to change their focus and look at building more affordable properties, it is claimed...

They have spent too much time focussing on the higher end of the market but it is the affordable homes sector that could bring in revenues in the future as demand soars, according to consultants A.T. Kearney.

It sees affordable housing as the new frontier for the MENA real estate industry which is says is worth $125 million a year.

In Egypt there is a shortage of 280,000 units annually and in Saudi Arabia there is an annual shortage of 150,000 units, the company estimates.

To serve this growing middle income segment, developers will be required not only to change their master plans but to revise their current business models to maximize volume and optimize margins, according to A.T. Kearney.

‘To succeed in the middle income markets in the Gulf region, government agencies and developers must shift their business models and views on, particularly land prices and profitability,' said Olivier Larches, principal in the real estate practice, A.T. Kearney Middle East.

Most developers agree that land prices should represent no more than 30% of total development costs in order to avoid jeopardizing projects, but in many Middle East locations, land speculation has driven up prices and made middle income housing difficult to pursue.

Governments and municipalities will have to get involved to ensure balanced urban development by monitoring short term private interests and supporting the development of the middle income market, it says.

A recent example is the announcement by the Urban Planning Council in Abu Dhabi that all developments larger than 75,000 square meters must set aside rental options for the middle income group

‘In terms of profitability, investors and shareholders must take a more realistic approach to market demand. Given that there are millions of people to satisfy, volume is the goal. Developers of adequately managed properties should plan on project returns in the 10% range, not the 20 plus margins of high end projects,' said Laroche.

According to A.T. Kearney many developers regionally are already revising their plans for high end mixed use projects to incorporate more affordable residential space, and more can be expected in this area regionally.

‘To make this change, developers need to align their operations to the new targets so that their business models take into consideration costs and affordability throughout, all the way from design and construction to sales and marketing,' said Matthieu De Clercq, senior manager, A.T. Kearney Middle East.

The challenge for local developers is to meet not only current needs and the demand for affordable housing but doing so with an eye to con¬solidation opportunities and diversification strategies, he added.

Source: www.propertywire.com

Landlords urged not to sell

Catherine Deshayes — 06/08/2010 11:35:00

Leaders is urging landlords with properties for sale to think again...

The lettings specialist points out that the UK housing market is currently painfully slow because of oversupply, while the rental market is seeing exceptionally high demand.

The firm's managing director, Paul Weller, comments: "According to the latest Nationwide Monthly House Price Index, house prices fell by 0.5% in July on the back of weak buyer demand."

He adds: "It simply does not make sense for landlords to have their properties sitting empty as they try to sell in a stagnant market while we have a shortage of properties for waiting tenants who are clamouring for somewhere to rent."

However, Mr Weller urges fast action as traditionally, rental property stocks peak in the autumn.

He also reminds "reluctant landlords" who entered the rental market because they have been unable to sell, that recent improvements in the mortgage market could enable them to release equity in their properties while keeping their old homes as buy-to-let investments.

According to the latest Buy-to-Let Index from LSL Property Services, the average UK rent rose 1% in June, to £673 per month, taking the annual gain to 3.2%, or £23 more than a year earlier.

London saw a 1.9% surge, to £942.

Source: www.homemove.co.uk

Blackpool set for brand new look

Catherine Deshayes — 05/08/2010 07:19:00

It is best known for its iconic tower, donkey rides and traditional British seaside charms. But Blackpool is to receive an injection of American glamour with the news that one of the world's most popular cartoon figures will bounce into town next spring...

The resort's Pleasure Beach theme park is to undergo a £10million makeover, which will see the creation of a new zone dedicated to the US entertainment channel Nickelodeon - including its star name, SpongeBob SquarePants.

Nickelodeon Land will have 14 rides, including attractions based on characters such as Dora The Explorer and The Rugrats - alongside the headline act, SpongeBob's Splash Bash, which will give visitors the chance to squirt each other with water jets.

Work on Nickelodeon Land will begin in the autumn, once the Pleasure Beach's main summer season is finished - with the project scheduled for completion by April 2011.

The zone will take up six acres in total, replacing the existing Beaver Creek area.

‘We have spent the past 18 months working on this with Nickelodeon,' says Nick Thompson, deputy managing director of the Pleasure Beach.

It is hoped that SpongeBob's eccentric appeal will bring in an extra half a million visitors a year.

This will be the first Nickelodeon theme park in the UK, and only the third outside the US (adding to existing theme parks in Australia and Germany).

Source: www.dailymail.co.uk

World's first ferrari park in Abu Dhabi

Catherine Deshayes — 27/07/2010 07:28:00

A year after its first Formula One race, Abu Dhabi hopes to lure even more tourists with "Ferrari World" -- a grandiose theme park that is the first of its kind for the iconic Italian carmaker...

Ferrari World Abu Dhabi announced on Monday that the park will open in 100 days featuring a record-breaking roller coaster ride meant to emulate the feeling of being in a Ferrari F1 car.

Sitting next to the futuristic Yas Marina circuit that hosted Abu Dhabi's inaugural Grand Prix race in November 2009, the sprawling complex will be the world's largest indoor theme park.

Due to open on October 28, little more than two weeks before this year's Abu Dhabi GP, it will be housed under a massive triangular red roof on the 40-billion-dollar Yas Island development.

"It is an indoor thing with an outdoor feeling," said Claus Frimand, the general manager of Ferrari World Abu Dhabi.

"You forget that you are inside a building because the roof is between 35 and 50 metres above you and there are no support structures, except the funnel in the middle and one row of columns," he added.

Abu Dhabi, the United Arab Emirates capital, hopes the park will help to draw tourists from around the globe along with several other ambitious projects including state-of-the-art branches of the Louvre and Guggenheim museums.

Ferrari World spreads over 86,000 square metres, while the red roof bearing the world's largest logo of Ferrari's prancing horse stretches over 200,000 square metres.

Among its 20 attractions are two roller coasters, including the F1-themed Formula Rossa which is set to be the fastest ever reaching a top speed of 240 kilometres per hour.

"It gives you the feel of driving in a F1 car very close to the ground," said park manager Andy Keeling.

The second of the roller coasters, which stretch beyond the building's perimeter, features two tracks with Ferrari-shaped trains.

"The unique feature is that it has two tracks, two trains side by side and depending on the weight of the passengers, one will cross the finish line first," said Frimand.

Right in the centre of the building, out of a big funnel which is the only area with daylight, visitors can experience the space-shot G-force Tower.

"That is the highest we could build on the island," said Frimand. "We can shoot people up through the roof where they can look over the whole island.

"It gives you the G-force that the drivers are experiencing during the race," he added.

Elsewhere, a Ferrari California Spyder convertible takes visitors through Bell'Italia, a reproduction of the Italian countryside with model villages and tourist highlights like the lagoon of Venice, the Colosseum, and the Leaning Tower of Pisa.

A large replica of the Maranello factory demonstrates the manufacturing process from the design stage to the finished product.

Motoring enthusiasts will even be able to experience the inside of a Ferrari V12 engine in another ride.

Abu Dhabi hopes such features will boost tourism in the desert emirate.

"It is a good thing for the tourism offering in Abu Dhabi as there is not all that much to see," said Grant Salter, general manager of the leisure consultancy Grant Thornton.

"But in isolation, it is not going to drive a huge volume to the capital. It will rather create an additional activity for people who are visiting the emirate anyway," he added.

Premjit Bangara, manager at Sharaf Travel, sounded more upbeat about the impact of Ferrari World on tourism, saying it will stimulate interest from neighbouring countries where people are passionate about racing.

Another challenge will be profitability.

"Very few theme parks in the world are financially sustainable," said Salter. "Generally the number of visitors coming in is never enough to cover the costs."

Source: AFP

'Flat prices' across Northern Emirates

Catherine Deshayes — 26/07/2010 07:17:00

A real estate recovery is still some way off across the Northern Emirates with apartment rentals flat, prices down by up to eight per cent and villa prices down on average by 12 per cent, the latest figures show...

Tenants are moving back to Sharjah from neighbouring emirates as supply increase forces prices down, the report also shows. Studios in Sharjah continued to out perform other residential sectors as rents remained the same in the second quarter as the first with prices between Dh16,000 and Dh24,000 per annum, a new report from Asteco Property Management shows.

But one bedroom apartments have seen prices fall 8%, two bedroom apartments are down 4% and three bedroom apartments have dropped 6%.

‘One of the major factors underlying Sharjah's rental adjustment is the amount of supply coming to the market. However, we have witnessed over the last few months that there is some interest in these areas as some towers have completed providing tenants with low rents, larger properties and better facilities,' said the report.

‘Conversely the three bedroom villa market has seen rents drop at a much steeper pace over the last three months. The rental rate for a typical three bedroom apartment has put downward pressure on the villa market, particularly given the variances in accessibility, quality and value for money,' it added.

In Ajman, Ras Al Khaimah, Umm Al Quwain and Fujairah prices continued to fall at rates similar to the first quarter in most areas in the three months to the end of June, according to the report.

Rents for three bedroom apartments on Ajman Corniche have dropped by 12% compared with 7% per cent in the first quarter of the year. But the area continues to attract interest from people working in the emirate, although the market is competitive and landlords, especially private landlords, are offering incentives and dropping their prices to secure occupancy, the report points out.

Developers in Ajman are aiming to build confidence in the real estate market by introducing construction linked payment schedules.

‘Although the last three months have not seen any improvements in the real estate market, the Northern Emirates various government departments are striving to ensure a better regulatory environment and planning on new ways to stimulate demand,' said Elaine Jones, chief executive officer at Asteco Property Management.

Office rents saw a slight price decline in the second quarter from Dh40 to 75 per square foot to Dh40 to 70 per square foot but the tourism master plan currently being devised by the Government is expected to have a positive impact on prices for all asset classes. However, the past three months have not been so positive with utility problems severely hampering the city's appeal.

‘Utility connection issues continue to be the primary problem in the Northern Emirates, affecting many households and businesses. The Sharjah office market continues to show rental rate decreases with an average reduction of 6% in the last three months, similar to the previous quarter,' the report said.

Source: www.propertywire.com

Global commercial recovery underway

Catherine Deshayes — 05/05/2010 10:55:00

Latin America and Asia are leading the recovery in the global commercial property market with Peru, Brazil and Singapore providing the best upswing, according to a new report...

Commercial property transactions rose across the majority of the globe as generally low interest rates and relatively high yields are an attractive prospect for investors, says the Global Commercial Property Survey for the first quarter of 2010 from the Royal Institution of Chartered Surveyors.

Transactions rebounded in the USA for the first time in three years with the net balance of surveyors reporting a rise in transactions moving from a negative 22% to a positive 13%. In contrast, more surveyors again reported a drop in activity in the United Arab Emirates and Greece.

The increased level of transactions is providing support for a recovery in capital values. In Brazil, the net balance of surveyors reporting a rise rather than a fall in capital values jumped from 25% in the fourth quarter of 2009 to % in the first quarter of 2010.

Significantly, the recovery has started to move into some parts of Eastern Europe with the net balance of surveyors reporting on capital values turning positive in Russia, Poland and the Czech Republic, the report says.

Despite this, the availability of real estate for occupation continued to rise across 90% of the globe, Australia, Hong Kong and Poland are the exceptions to this trend.

Surveyors are confident, however, that the emerging economies, particularly in Latin America and Asia, will continue to lead the property recovery into the second quarter of 2010 with sentiment towards capital values particularly strong in Hong Kong, Peru and Brazil. There has also been a material improvement in Russia.

The report also shows that new development starts are rising in Brazil, Peru and Chile, capital values are still declining in Ireland, Spain, Turkey, Hungary and Greece and rental declines are easing in the UK, France and Germany

The Australian commercial property market is experiencing a positive shift in investment activity while in China rents rose for the first time in 18 months but investment transaction activity in China grew at half the pace of the fourth quarter of 2009.

‘The Latin American and Asian markets are still leading the commercial real estate recovery although there are some signs that the improving picture is spreading to other parts of the world. Significantly, there also has been a rebound in the US market with cheap property starting to attract investors for the first time in three years,' said RICS chief economist Simon Rubinsohn.

‘However, one challenge still to be overcome in much of the developed world is the overhang of public sector debt. This could have consequences for both occupier activity and the ongoing strength of the investment recovery reflecting both the rationalisation of government property space and the potential for higher borrowing costs,' he added.

Source: www.propertywire.com

New flights to Iraq launched

Catherine Deshayes — 20/04/2010 11:05:00

Abu Dhabi's national carrier, Etihad Airways, yesterday announced plans to launch weekly flights to war-ravaged Iraq starting from April 26...

"Etihad will operate five return services per week to Baghdad," operated by Airbus A320 aircraft, the company said in a statement. It is to add a second Iraqi destination, the Kurdish capital of Arbil in northern Iraq, from June 1.

The decision to make Etihad the first United Arab Emirates airline to fly to Baghdad is "subject to government and regulatory approvals," it said.

"We expect to see strong demand on these routes, particularly from government and business travellers, as well as people from Iraq visiting family and friends around the world," Etihad Airways chief executive James Hogan said.

Etihad launched a twice weekly cargo-only service from its hub at Abu Dhabi to Baghdad last September.

Source: AFP

Longer visas to aid UAE market?

Catherine Deshayes — 08/04/2010 10:05:00

State aid is needed to boost the property market in the United Arab Emirates with experts suggesting that more loans and longer visas for foreign buyers could kick start a real estate recovery...

State aid is needed to boost the property market in the United Arab Emirates with experts suggesting that more loans and longer visas for foreign buyers could kick start a real estate recovery.

They also believe that foreclosure and repossession cases in the Dubai real estate market are necessary for it to emerge from the downturn in a more mature state.

If the UAE central bank was to intervene to slash interest rates on home loans it would spur activity in the flattened housing markets, according to Nick Maclean, regional head of property consultancy CB Richard Ellis.

‘The government has to provide either sources of capital or ease the way that banks lend here to stimulate the marketplace,' he said.

‘It's not shortage of sentiment in the marketplace. There are still lots of people here who want to get on to the property ladder but can't do it,' explained Maclean, adding that pressure from the Central Bank would persuade local lenders to increase mortgage approval rates.

‘We need intervention probably in the way the UK government is encouraging the banks in the UK. Because if a bank is not getting the profitability it wants from a mortgage loan, why would it do it? It can make better money elsewhere and with less hassle, frankly, then lending to a group of very small borrowers. There has to be some Central Bank direction here,' he added.

Banks have historically blamed the high cost of mortgages in part on the instability of the Dubai real estate market; a risk exacerbated by the high number of foreign buyers that are able to ‘skip' the country following a mortgage default.

But foreign buyers should be encouraged, according to Maclean. He believes that the six month visas offered to foreign buyers of Dubai property is too short and is hampering the recovery of the real estate market. ‘Shortness of residency is definitely keeping the buyers away. We do need to elongate the window that people have so they don't need to go back and forth. The period we have at the moment is a barrier to entry,' he said.

But a toughness is also needed and while 2009 saw developers and financiers try to negotiate with clients in order to avoid foreclosures and repossessions, legal experts say a new harder approach can only be a good trend.

‘We are now seeing less and less negotiation taking place. It is the unfortunate side of business, but it has to be played out in order for these issues to be flushed through the system so that the economy can recover,' said Simmons & Simmons regional deputy head of real estate Duane Keighran.

‘From this point of view, it is refreshing to see the actions being brought, as it means we are one step closer to getting the issues resolved and moving on,' he added.

Maclean agrees. ‘It has to come because people, I think, have borrowed with a view that they're immune to any further action,' he said.

But it is a very sensitive issue, according to Richard Bell, an associate at Clyde & Co, as people don't understand it and there are concerns it could drive down prices. ‘As a result of these factors, we believe most banks and financial institutions will use the foreclosure procedure sparingly, at least in the short term while property prices remain fragile,' he said.

Source: www.propertywire.com

World's tallest building reopens

Catherine Deshayes — 06/04/2010 12:58:00

The 'At the Top' viewing deck of Dubai's Burj Khalifa, the world's tallest building, has reopened after being closed for maintenance for almost two months, an employee said yesterday...

The deck reopened at 1pm local time on Saturday, the employee in the tower's information office said.

Emaar Properties, which developed the tower, said in a February statement that the deck would be temporarily closed for "maintenance and upgrade."

A spokesman for Dubai Civil Defence later said that on February 6, the elevator became stuck near the 124th-floor viewing deck, trapping passengers for around 30 minutes.

The passengers were rescued unharmed, he said.

The lavish January launch of the glistening concrete, glass and steel tower, which rises 828 metres out of the desert sands, was part of Dubai's efforts to burnish an image tarnished by its crippling debt woes.

Source: AFP

Valuation standards needed in Gulf

Catherine Deshayes — 29/03/2010 12:42:00

More professional property valuation standards are needed if confidence is to return to real estate markets in the Gulf region, it is claimed...

Establishing a more mature valuation system will also lead to improved activity levels and aid the recovery of the market, says a new report from international real estate consultants Jones Lang LaSalle.

With property prices falling by more than 50% from their 2008 peaks, the Dubai market alone has seen the value of its developed real estate assets fall by well over US$ 100 billion and in other markets across the MENA region values have fallen by between 20% and 50% emphasising the regional importance of establishing real values, says the report.

The introduction of more professional valuation standards is an essential precondition for rebuilding the trust and confidence required for the recovery of real estate markets and inject independence, integrity and objectivity, it states.

‘Accurate and regular valuations comprise an integral part of the sound investment and risk mitigation strategies that investors need to adopt as the real estate market faces continued uncertainties and only selected stability in 2010,' it points out.

‘The absence of an agreed basis for measuring value and the lack of appreciation of the factors which drive value have contributed to significant boom and bust in property values experienced across parts of the MENA region over the past five years,' it says.

While price volatility underscores the need for change, it also represents a key challenge in terms of establishing a benchmark. Another problem is that actual transaction levels have reduced significantly in 2009 and so far during 2010. This limits using the traditional comparison approach and it makes it more difficult for buyers and sellers to find and agree a prices, says JLL.

‘Unlike trading in equities and commodities where pricing information is public, property values are not independently recorded or available in most markets in MENA. Potential buyers and sellers therefore operate with imperfect acknowledge, relying on anecdotes, newspaper articles and sentiment rather than on reliable market information,' the report adds.

‘There is also no requirements for owners to have real estate assets valued on a regular basis in most markets in the MENA region. This further compounds the lack of transactional evidence in depriving the valuer of accurate benchmarks against which to assess current market values.'

The report also says that governments have a key role in the development and adoption of international standard valuations and practices and the drafting of a regulatory framework and it says Dubai with the creation of its Real Estate Regulatory Authority is leading the way in the region.

‘One of the key characteristics of the current market downturn impacting real estate markets across the MENA region is the decline in transaction volumes, resulting from a lack of confidence and the subsequent uncertainty in respect of current and future pricing levels. While valuations in and of themselves, are not the sole answer to reversing this trend, they can provide a catalyst for the improvement in certainty and transparency required for the markets to recover,' the report concludes.

Source: www.propertywire.com

Gulf market to bottom out?

Catherine Deshayes — 22/02/2010 10:12:00

The real estate market in the Gulf is likely to bottom in the second quarter of this year but the expected rush of distressed assets and entry of vulture funds has not yet materialised, it is claimed...

Prices are likely to remain depressed and a dip in rentals is also expected due to an increasing supply of vacant property and recovery is not expected until 2011, according to a new report from global investment bank Nomura International.

‘There is not yet enough return for the vulture funds unless prices are discounted further. The emergence of vulture investing will mark the low point in the current pricing cycle but it will probably not be enough to absorb oncoming supply so any recovery will be muted,' said Chet Riley, Equity Research, Middle East at Nomura.

Nomura analysts expect 2010 to be as difficult as 2009 was. ‘Capital values are driven more by capital flows than rental values but we are not seeing new capital yet. The United Arab Emirates services a regional population of more than 1.5 billion and arguably is the trade hub capital of the world, so we believe it is difficult to dismiss Dubai and the wider UAE on long-term fundamentals,' the report said.

Looking ahead the report says that a development lead time of five years does give places like Dubai time to absorb the over supply and ‘normalise' the real estate market.

‘But it will take some time. We are seeing signs of stabilisation but the residual risk has not fully unwound yet. When the risk does unwind, the financially weak developments are sidelined for good and the looming oversupply situation is resolved, we will become more positive on the macro real estate fundamentals,' the report adds.

According to the report the real estate sector is currently in mid-cycle with real estate secondary prices stabilising but project financing for new or stalled developments is still virtually impossible. ‘Until the financing of these developments can be bridged, there will be a sector stalemate with real estate trying to transfer the purchasing risk and the banking sector not willing to accept it,' the report says.

Dubai is also seeing a huge drop in the number of developers now operating. At the peak of the market the Real Estate Regulatory Agency estimated that there were 800 developers in Dubai alone. The last official count suggested 473 and Nomura analysts believe this could drop to less than 100.

The report points to property companies increasingly selling equity stakes in ongoing developments in order to ‘round trip' equity and de-risk balance sheets. UAE developers have also been forced to evolve rapidly and build up rental portfolios.

It points out that rental streams can be capitalised to provide alternate sources of funding for developers. A recent example is Union properties which has transferred about 2,000 unsold units to its general rental portfolio and thus increased its rental income to offset against a decline in sales.

Source: www.propertywire.com

Gulf developers: ‘creative negotiation'

Catherine Deshayes — 19/02/2010 10:11:00

Real estate developers in the Gulf region are going to have to negotiate creatively with investors during 2010 to avoid a rise in defaults, it is claimed...

Anecdotally there is evidence that real estate investors have defaulted because they are concerned that the projects they have invested in will never get built.

But instead of chasing them for payments developers should enter into a dialogue and come up with options that will entice them back on track, according to Craig Plumb, head of research for the Middle East and North Africa with consultants Jones Lang LaSalle.

‘Clearly, there will be more investors who have decided not to pay for things that are never going to get delivered and if I was in that boat I would probably default as well,' he said. ‘What's happening is that owners and developers are going back to those investors and coming up with different options,' he added.

Plumb explained that that due to a lack of established regulations and the sheer expense of the legal option, negotiation is often the only course of action. He confirmed that Union properties, Nakheel and Emaar are all pursuing this route.

‘Developers can offer a unit in a finished building instead of one in a building that will never be built. So if a developer has ten projects and only 10% of them are sold, they can put all of that10% of payments into one project and leave the other nine until demand returns,' he said.

His colleague, regional managing director Blair Hagkull said that he expected that prices would remain flat during 2010, with a margin of 5% either way. However, he added that outlying areas that don't have the amenities or proximity to services of locations like Sheikh Zayed Road and Downtown Dubai could see prices drop by between 15 and 20%.

Source: www.propertywire.com

UAE inflation at 9-year low

Catherine Deshayes — 18/02/2010 11:10:00

Falling property prices pulled the inflation rate down to a nine-year low last year, Government figures show...

Inflation ran at 1.6% last year, while consumer prices for December eased 0.7%.

That represents a sharp reversal from the year before, when UAE inflation reached 12.3%, the second-highest in the GCC.

Source: The National

Abu Dhabi: prices stable

Catherine Deshayes — 04/01/2010 11:07:00

Property prices in Abu Dhabi remain stable but only a small number of investors are currently active in the market and many are waiting for completion dates for 2010 before committing, it is claimed...

According to Landmark Advisory, one of the leading real estate consultancy companies in the Middle East, October and November were two of the most active sales months of 2009 for the city with demand focused on close to completion developments such as Marina Square, Al Reef Villas, Sky Tower and Al Bandar.

However, prices have not measurably appreciated and buyers continue to look for distressed sales.

They are looking for completed properties and are waiting for hand over dates to be announced by developers.

‘Despite an increase in sales activity in the third quarter, demand levels since mid November have waned, leading to limited sales volumes in December,' explained Jesse Downs, Director of Research and Advisory Services, at Landmark Advisory.

The company's latest sales guide shows that transactional prices remained stable throughout the fourth quarter of 2009 and are not expected to increase until property is handed over in 2010.

‘Prices are only likely to increase for developments that are close to completion during 2010.

As these developments get closer to completion, transaction volumes are expected to increase, which could gradually lead to marginal price increases,' said Downs.

Asking prices saw a marginal increase of 5 to 6% with the exception of Al Bandar which has seen average asking prices decrease by 9% since September 2009.

‘This indicates that Al Bandar owners are now adjusting their price expectations.

By reducing the price, Al Bandar is likely to start attracting more buyers that were until now focused on less expensive developments,' explained Downs.

‘Our findings show that while buyers through the third quarter of 2009 were still primarily end-users, this demand segment is now waiting for clear signals of progress within nearly completed developments before engaging in any activity,' she said.

‘Only a small number of investors are currently active in the market.

The postponement of delivery dates, most notably for Al Bandar and Marina Square may be further restricting demand,' she concluded.

Source: www.propertywire.com

Dubai ‘delaying UAE recovery'

Catherine Deshayes — 22/12/2009 10:41:00

The recent chain of events in Dubai could delay the recovery for the UNITED ARAB EMIRATES real estate sector and put renewed downward pressure on property prices and rentals, it is claimed...

Data for the third quarter of 2009 suggested that the UAE real estate sector was showing early signs of recovery with prices and rentals beginning to stabilize, but international brokers Goldman Sachs says in a new report the overall impact of the debt crisis will be negative although the extent of the fall out is not yet clear.

‘The extent of the impact on the sector will largely be a function of how the restructuring of Dubai World unfolds. That remains unclear at this stage,' the report says.

Last month, Dubai raised fears of a second bout of global financial turmoil by asking for a six month repayment freeze on debt issued by Dubai World and its property development unit Nakheel.
The real estate and construction focus in the UAE is shifting to Abu Dhabi from Dubai, said Goldman Sachs, which revised its price targets on UAE real estate companies, including its top picks Aldar Properties and Arabtec Holding.

Abu Dhabi based Aldar's strong market position and government backing should allow it to benefit from the expected pick up in Abu Dhabi's economic growth on the back of high oil prices and its plans for diversification, the report pointed out.

Dubai's Arabtec should benefit from its diversification into high growth construction markets such as Saudi Arabia, Qatar and Abu Dhabi, although short term challenges relating to working capital and exposure to Dubai remain, it added.

Meanwhile Dubai based Emaar Properties is in a stronger position than it seems, due to the cancellation of its merger with three property units of Dubai Holding, according to Deutsche Bank.
The Dubai master developer, which is building the world's tallest tower, last week announced the cancellation of merger plans with Dubai properties, Sama Dubai and Tatweer. ‘Now that the potential merger with Dubai Holding entities is off the table we believe investors can take a fresh look and rediscover Emaar's appealing equity story,' Deutsche Bank analysts said.

Source: www.propertywire.com

Abu Dhabi bailout: verdict

Catherine Deshayes — 16/12/2009 12:10:00

Abu Dhabi's $10 billion bailout of troubled Dubai will do little to rescue its beleaguered property market or to tempt overseas buyers back to the emirate until late 2011 and beyond, it is claimed...

Dubai's ailing property market had shown tentative signs of recovery in recent weeks after prices fell by up to 50% in the last year but when state backed Dubai World sought a standstill on debts of $26 billion that dealt a serious blow.

Abu Dhabi stepped in earlier this week to prevent Dubai World's development arm Nakheel, from defaulting on a $4.1 billion Islamic bond due on December 14, but the move has seriously dented investor confidence.

‘It will definitely delay the recovery of the property market by 18 months to the second half of 2011,' said Patrick Rahal, a Doha-based senior analyst at The First Investor bank. Others are more pessimistic. ‘I wouldn't like to even guess when this market might return to the good times,' said Jonathan Thompson, global head of real estate at KPMG in London.

The handling of the situation has not helped with the announcement that Dubai World was seeking a six month delay on paying its creditors coming in the middle of a religious holiday. Some are wondering if there is more bad news to come.

However the psychological impact of the bailout is positive even although the market is still fundamentally weak, according to Saud Masud, head of research and senior real estate analyst for the Middle East and North Africa at UBS.

The main problem is still oversupply, he said, and property prices are expected to drop another 20 to 30% by the middle of 2011. The spectre of fresh fire sales now haunts the market and this could dilute the impact of the Abu Dhabi's bailout package.

Also investors shocked by the government's decision not to guarantee the debts of related entities like Nakheel will encourage some nervous investors to pull out early, putting new downward pressure on prices, according to Sana Kapadia, vice president of equity research at Egyptian bank EFG Hermes in Dubai.

A number of international property investors had already relegated the emirate to the bottom of their property investment wish lists. Even opportunistic property investors like London's Enstar Capital are retreating from Dubai, citing concerns that the current debt restructuring is just the beginning. ‘One of our biggest fears is that Dubai's reported debts of $75 billion are actually in fact much larger,' said Enstar co-founder Farid Alizadeh.

‘Having seen what has happened in Iceland and others, investors in such times go to what are deemed safe havens and if Abu Dhabi is bailing Dubai out then it will be Abu Dhabi which will be deemed a safe haven and not Dubai,' Enstar co-founder Simon Lyons added.

Source: www.propertywire.com

Abu Dhabi bails out Dubai

Catherine Deshayes — 14/12/2009 12:25:00

Abu Dhabi has bailed out struggling Dubai based developer Nakheel to enable it to pay a $4.1 billion sukuk bond due to be paid today...

The money is part of a bigger sum paid to parent company Dubai World which recently shocked the world's markets by announcing it is seeking a six month delay on paying its debts.

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

‘As a first action for the new fund, the Government of Dubai has authorized $4.1 billion to be used to pay the sukuk obligations that are due today.

The remaining funds would also provide for interest expenses and company working capital through April 30, 2010 - conditioned on the company being successful in negotiating a standstill as previously announced,' he added.

‘In addition, the Government of Dubai is particularly focused on addressing the concerns of Dubai World trade creditors within the Emirate of Dubai. To help address these concerns, today the Government of Dubai is announcing that the remainder of the funds provided will be used for the satisfaction of obligations to existing trade creditors and contractors. Discussions with affected contractors will begin in short order,' he continued.

Al Maktoum also said that the central bank is prepared to provide support to local United Arab Emirates banks and there will be a comprehensive reorganization law based upon internationally accepted standards for transparency and creditor protection.

‘This law will be available should Dubai World and its subsidiaries be unable to achieve an acceptable restructuring of its remaining obligations,' he said.

The once rapidly booming economy of Dubai has been hit hard by the global financial crisis, which turned off the tap on easily available foreign finance, leaving many of its companies high and dry with a heavy debt burden. The property industry has been particularly badly hit with prices falling 47% in the last year according to the latest global real estate industry index published last week by Knight Frank.

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

Source: www.propertywire.com

UAE developer hits South Africa

Catherine Deshayes — 26/11/2009 10:51:00

Abu Dhabi property developer, Royal Group, owned by royal Sheikh Tahnoon bin Zayed al-Nahyan, plans to build thousands of affordable residential properties in South Africa, the country's ambassador to the UAE has announced...

The South Africa property projects are believed to be among many businesses that the Royal Group, which includes property developers Hydra properties and Global Investment House, is considering in the country.

It is understood that the company plans to build thousands of low-cost homes in South Africa, primarily for blacks living in poor conditions in townships, many of which are earmarked for redeveloped.

South Africa has already announced plans to spend around £60bn on new building infrastructure, improvement of roads, new homes and sports facilities between now and 2017.

Demand for South Africa properties to buy and rent is reportedly growing ahead of next year's FIFA World Cup, the largest sporting event in the world.

South Africa was last week named in the top 10 places to invest in property abroad in 2010 by HomesOverseas.co.uk.

Source: www.homesoverseas.co.uk/news

Abu Dhabi blooming

Catherine Deshayes — 25/11/2009 11:12:00

Abu Dhabi property developer Bloom Properties is the latest in a long line of international housebuilders to announce plans to launch a multibillion pound property project in Iraq - a report in today's UAE daily the National said that the property developer, which is the real estate arm of National Holding, is in talks with top officials in Iraq over a proposal to build a £10.9bn property scheme called Al Madeena Al Jadeeda City in the Shi'ite holy city of Karbala...

Quoting figures from Dunia Frontier Consultants, the National reports that Emirati investors have committed £23bn to Iraq this year. The money will go a long way towards helping the country rebuild itself, following the recent war, and help increase the supply of residential properties in Iraq.

Damac Properties, Al Maabar and Bonyan International Investment Group are among some of the other UAE property companies to have launched Iraqi property schemes.

Many UAE property developers have turned their attentions to neighbouring countries, following the recent UAE property downturn, particularly in the Dubai property market, where a number of off-plan housing projects have either been scrapped or suspended.

Source: www.homesoverseas.co.uk/news

Abu Dhabi: what's next?

Catherine Deshayes — 09/11/2009 12:01:00

Property sales in Abu Dhabi are expected to remain weak for the remainder of 2009, but are likely to stabilise during 2010, according to the latest report - rents in the emirate are also falling and landlords will need to adopt a more flexible approach to stay competitive, the report from consultants CB Richard Ellis says...

The second quarter of the year was a testing time for the Abu Dhabi property market with demand weakening across all market sectors.

‘Remarkably, this same period last year was epitomised by rampant growth when momentum in the real estate market appeared unstoppable.

The swift and abrupt end to off plan sales activity is reflected in declining sales prices universally,' it says.

The situation is unlikely to improve in 2009.

‘Investment decisions remain on hold with minimal activity expected before the final quarter as we enter the traditionally quieter holiday period followed by the holy month of Ramadan,' the report predicts.

Analysts say that both developers and investors are more attentive to fluctuations of key market indicators and vigilant on where exactly this current downturn can go.

But there are some encouraging signs in terms of price stability with declines slowing.

Overall prices and sales during the third quarter were at an extremely low level. Average sale prices for high-end apartments and villas started from Dh11,300 per square meter and Dh8,600 per square meter, respectively.

In the rental market rates fell significantly during the first six months of the year but the decline slowed down in the third quarter, particularly for housing units situated within the central business district.

Apartment rents in central locations dropped by around 5% compared to the second quarter, while many apartment rents actually remained unchanged.

The report says that average annual rents for a one bedroom apartment in The City centre range from Dh100,000 per annum to Dh130,000 per annum, while prime units are still in excess of Dh140,000 per annum.

‘Low levels of investment reflected the unmatched expectations of both existing investors and potential buyers with owners of properties reluctant to succumb to lower values in anticipation of a positive cyclical spin, while buyers are wary of a continued downturn in asset values,' said Matthew Green, Associate Director, CB Richard Ellis Middle East.

Source: www.propertywire.com

New laws for Abu Dhabi investors

Catherine Deshayes — 04/11/2009 12:12:00

New laws to help make the real estate market in Abu Dhabi more transparent and safer for buyers are expected to be introduced in the early months of next year - officials at the Department of Municipal Affairs are currently drawing up the necessary draft documents that will cover escrow accounts, brokers, titles and mortgages...

Regulations covering planning and building are also under consideration.

It is expected that overall five set of regulations will be incorporated in the existing law 19 of 2005 that sets rules for real estate developers, contractors and brokers.

It also includes rules covering off-plan sales, licensing of high rise residential buildings and property registration.

There is no date yet being given as to when they will be introduced but an official told Property Wire that they will only be enforceable once they are published in the Gazette.

‘We are confident that the new set of laws will be the most thorough in the Gulf region.

They will improve regulation and give investors greater confidence when investing in the emirate.

They will give investors comfort to know they are investing in a property with a real title deed and that the system of ownership is recognised in line with best international practices,' he added.

Central to the proposed introduction of the laws will be a change in the freehold ownership of land. In 2002, Dubai introduced freehold ownership of property in selected areas, sparking its six-year real estate boom. Now they will be extended.

Plans are also underway to bring in strata laws, which regulate the ownership of units within a building and broker laws, which regulate the practices of estate agents and commercial leasing agents.

An improved escrow law will cover commercial and residential property and protect investors and ensure developers actually deliver projects.

Improving the quality of construction in Abu Dhabi is also on the agenda.

There have been several building collapses in the United Arab Emirates in recent months including in Dubai and Sharjah, putting the issue at the top of the agenda.

‘We will be looking at new constructions as well,' the department official confirmed.

Once the building codes are introduced they will become law and will be implemented only within Abu Dhabi but other emirates are expected to follow with their own new rules.

Source: www.propertywire.com

UAE: confidence waning?

Catherine Deshayes — 22/10/2009 11:03:00

The number of property industry visitors to the Cityscape Dubai expo earlier this month which is the biggest in the Gulf region was down by 50%, it has been confirmed...

Before its opening the organisers said they expected a 30% fall in numbers but the figures reveal a much worse turnout with just 38,000 people attending the four day show.

It is a bitter blow to the Dubai real estate sector which shows no signs of recovery with prices, sales and rents continuing to tumble.

The number of exhibitors to Cityscape was also down to 218 compared with 340 last year when lots of new developments were launched amid a show of glitz and ostentatiousness.

But now the real estate industry has tumbled and all recent reports from analysts make depressing reading with no one predicting a turnaround in the coming months and the outlook for 2010 depressed.

Rohan Marwaha, managing director of Cityscape Dubai, tried to remain upbeat and said that Cityscape held up well by international standards.

‘We saw a shift back to market fundamentals at Cityscape Dubai this year.

The speculators and other amateur investors were conspicuous by their absence as were any hint of unrealistic or dazzling developments,' he said.

‘The mood was sober and professional. However compared with other real estate events in Europe and Asia, Cityscape by comparison was very well supported.'

He added that international participation increased as a year-on-year percentage, with stands from Sudan, Angola, Paris, and companies from Canada and Australia, complemented by a healthy regional presence which extended across the GCC and Iraq.

He also revealed that the changing dynamics of the industry may well lead to changes to Cityscape for next year.

‘We will continue to tailor this event to meet the requirements of real estate professionals, whether locally, regionally or internationally,' he explained.

Property prices in the emirate have fallen by up to 50% from their 2008 peaks and many developers who exhibited at Cityscape believed prices still had further to fall.

Figures also show that 472 commercial, residential and hospitality projects have been cancelled or on put on hold.

Source: www.propertywire.com

RAK scheme part-suspended

Catherine Deshayes — 16/10/2009 11:07:00

The developer behind Ras Al Khaimah's first man-made islands, RAK Properties PJSC, has announced that it is to part-suspend the 12bn dirham (£2.2bn) project until the Ras Al Khaimah property market improves...

Construction work on parts of Mina Al Arab, a beach resort in the northern part of the UAE, that have not yet been sold will be stopped, according to Mohammed Sultan Al Qathi, the company's chief executive officer. He said that a marina, a shopping centre and seven hotels are among those projects to be put on hold.

"We were dreaming of having 11 hotels; now we will go with maybe four," Al Qathi told the press. "If the market improves, we will go ahead and build that."

The global financial turmoil has seen demand for property in UAE slump in the past year or so, causing around 400 hundred UAE property projects, worth around £200bn, to be put on hold or cancelled, according to a recent report from the Proleads Group.

Source: www.homesoverseas.co.uk/news

Oz attracts Middle East

Catherine Deshayes — 15/10/2009 10:01:00

Tourism Queensland will appoint a representative in the Middle East next month to encourage visitors from that emerging market...

Stopping in Abu Dhabi during her trade mission, Premier Anna Bligh said the representative would be in place for six months from November 2009, covering the peak selling period.

"I've held meetings in Dubai and Abu Dhabi with both Emirates and Etihad Airlines, and in the wake of those meetings I have decided to act quickly to help both Queensland and the Middle East region grow this important tourism market," Ms Bligh said in a statement.

"This new role will help implement cooperative marketing activity during the peak selling period in the Middle East early next year to ensure maximum sales for Queensland from key nations such as Saudi Arabia, Kuwait, Qatar and the United Arab Emirates."

Despite the worldwide economic downturn, the number of Middle Eastern visitors to Queensland in the past financial year increased by 13 per cent.

Middle Eastern visitors to Australia contributed $580 million to the economy in the year to March 2009.

Source: www.theage.com.au

Developers look to North Africa

Catherine Deshayes — 13/10/2009 10:27:00

Middle East based developers are increasingly looking to North Africa where demand for real estate is expected to grow both from nationals and foreign investors...

Morocco, Egypt and Tunisia are regarded as some of the best markets for investment.

‘I definitely see expansion continuing in this area.

But it will be rationalised and focused as opposed to let's go out there as fast as we can,' said Jalil Mekouar, head of Middle East and Africa at Jones Lang LaSalle Hotels.

Developers such as Qatar's Barwa Real Estate, which recently announced a $9 billion Cairo project, are targeting the region to help offset troubles closer to home and to tap a region that lacks an appropriate infrastructure to serve a large, rapidly growing population.

Whereas the Gulf region, with Dubai in particular, suffering from a property crash with prices down up to 50%, places like Egypt have seen less of a downturn.

Residential property prices in Cairo have fallen 15% in the last year and are expected to stabilise according to analysts at EFG Hermes.

‘North Africa is a great opportunity for investors.

In Egypt you have three of four big developers and a population of 80 million. In the UAE, more than a dozen large companies are addressing a population that is barely five million,' said Saud Masud, UBS real estate head of research.

Egypt has also introduced a raft of economic reforms over the last few years, such as slashing taxes and seeking to streamline its customs to boost investment, while Morocco, another key target for Gulf firms, is also taking steps to help investors.

‘In Morocco, there is still a lack of transparency in many areas such as legal, financing and administrative.

But local authorities are aware of these problems and there are actions being put in place to address them,' said Karim Beqqali, managing director at CB Richard Ellis for Morocco.

RAK Properties, the developer that built Ras Al Khaimah's first man-made islands is looking at potential projects in Algeria, Morocco and Sudan as they are countries where population growth is driving demand.

‘There are countries in the Arab world which desperately need affordable housing and we are now conducting feasibility studies,' said Mohammed Al Qathi.

Source: www.propertywire.com

Gulf goes green?

Catherine Deshayes — 08/10/2009 10:14:00

A change in urban property design and attitudes towards cooling in the Gulf region could greatly reduce the impact of buildings on the environment, it is claimed...

Turning up the air conditioning temperature by just a few degrees will reduce energy consumption and dramatically cut costs to businesses and homes, global master developer Limitless told delegates at the Green Day seminar at Cityscape Dubai today (Wed October 07).

Air conditioning uses 40% of energy in the United Arab Emirates but raising the thermostat in offices, homes and recreational areas is a cheap, quick and easy way for everybody to play their part in environmental sustainability and save money, said Doug Kelbaugh, Limitless Executive Director of Design and Planning.

‘In China it is against the law to set the AC lower than 26 degrees centigrade in summer. Here in the UAE, most thermostats are considerably lower, anything from 18 to 23 degrees, we have found.

This means that it can be uncomfortably chilly in malls, shops, restaurants and some homes, with energy consumption and electricity bills unnecessarily high,' he explained.

‘Notching up the AC by three to five degrees saves up to 30% in energy consumption and electricity bills.

It is the most obvious way for everybody to be part of the environmental solution, not the problem,' he added.

But although just a small thing can have an impact an underlying strategy of better insulation and solar systems to make buildings even more energy-efficient is needed, he said.

Kelbaugh highlighted how changes in urban design could have a positive effect on the environment, the economy and personal wellbeing, by cutting congestion, fuel consumption, travel times and losses in human efficiency.

‘A traditional street and road grid with greater connectivity would make it quicker and easier to get around by car, on foot or on bicycle.

At present, it can be difficult to get from point A to point B, because a lack of intersections and places to turn left means extended trips and long loop-rounds to make a left turn,' he said.

Mixed-use communities, instead of separated land uses, are another essential way forward when it comes to environmental, economic and social sustainability, according to Kelbaugh.

Recent research by Limitless shows that people in Dubai walk only half as much as medical experts advise, some 5,000 steps a day instead of the recommended 10,000.

This inactivity leads to increased illness and time off work, meaning lost productivity and massive loads on the healthcare industry.

The study, of 625 Dubai residents, also showed that the top priority for people looking for a home is the ability to walk to work, followed by being close to a Metro station and that they are prepared to pay more for these amenities.

The developer is using the results of its study in the design and operation of The Galleries at Downtown Jebel Ali, the company's mixed-use, transit-oriented community project in Dubai.

There, offices and homes are a stone's throw away from one another, and buildings are complemented with green, open spaces for walking and recreation.

The Galleries will also be served by a Metro station, further encouraging walking and cutting car use.

Source: www.propertywire.com

Confidence boost

Catherine Deshayes — 02/10/2009 10:01:00

Property investors in the Middle East and North Africa are much more confident than they were six months ago and there are more buyers than sellers leading to pent up demand in the market, according to a new survey...

‘There has been a significant shift among investors from denial of the extent of the crisis to a more realistic acknowledgement of the new normal and a sense that the worst is behind us,' says the Real Estate Investor Sentiment Survey from consultants Jones Lang LaSalle which questioned 225 leading investors.

In the region Abu Dhabi, Saudi Arabia and Qatar are expected to recover from the downturn first but there is a lot of support for Dubai which is regarded as the regional leader in terms of competitiveness and real estate infrastructure, the report says.

‘A return to 2007 pricing coupled with the successful overhaul of the regulatory environment could see Dubai solidify its position as the leading regional and international destination for investment,' it adds.

According to Ian Ohan, Head of Investment Transactions for the company's MENA region, property investors are looking forward to 2010.

‘Investors responding to this survey have a clear expectation of what is required from governments and regulators to support the recovery,' he explained.

What they believe is needed includes ‘a framework to rectify and resolve real estate issues created by the excesses of the past' as well as effective economic stimulus and market transparency.

He also explained that investors are sending a clear wake up call to existing real estate owners.

‘The strategies employed by developers and owners in the past will not serve them well in attracting much needed investment,' Ohan said.

But the report also warns that the MENA region faces stiff competition for real estate markets in the Asia Pacific region.

‘Investors are now favouring Asia Pacific as the strongest expected global performer.

This is perhaps unsurprising given the positive growth rates now being experienced in China and India and the fact that various stimulus packages being introduced by MENA governments have only recently started to take effect,' the report points out.

Source: www.propertywire.com

World's tallest tower rejected

Catherine Deshayes — 18/09/2009 10:14:00

Planning authorities in Abu Dhabi have rejected a proposal to construct the world's tallest building, according to a report in the UAE daily the National today...

The proposed Abu Dhabi property scheme, which would have measured 224-stories high, would have been called "Al Imlaq," or The Giant, according the plans presented to Abu Dhabi Executive Council member Sheikh Ahmed bin Zayed, a member of the royal family.

However, the National report that planning permission was rejected after Sheikh Ahmed's staff concluded that the building would affect air traffic.

The project's promoter Fayez Barakat said: "One of the ideas for the building was to outdo the Burj Dubai.

"The Burj Dubai is expected to be more than 800m tall but its developer Emaar Properties has not disclosed the tower's exact height.

"Undeterred by Abu Dhabi's rejection, Barakat and his associates now plan to woo investors in Saudi Arabia, where billionaire Prince Alwaleed bin Talal's Kingdom Holding Company has already floated plans to build a 1.6-km tall tower."

Source: www.homesoverseas.co.uk/news

Shiny happy people

Catherine Deshayes — 10/09/2009 10:43:00

More than 80% of expatriate employees said they were happy they had come to Qatar, according to a jobs and employment survey...

Commissioned by tourist and residents' website qatarvisitor.com and community portal iloveqatar.net (ILQ), the survey attempted to assess how people found work and how that work had changed their lives.

87.6% of employees approved the relocation to Qatar. More than 30% said they found work via the Internet.

On the Internet, 16.1% found jobs via job sites, 7.2% by jobs advertised directly on employers' websites and 7.2% through uploading their CVs to websites.
Recruitment agencies accounted for 16.6% of the positions found.

‘More than a quarter of those who found work in Qatar via agencies claimed they had been illegally charged by those head-hunters,' a spokesperson said.
Responding to the question on why people made the move to Qatar, almost half of those surveyed stated money was the most important factor. A substantial proportion - 28.1% - declared they sought work in Qatar in order to experience a new culture.
A small percentage (5.3%) said they were ‘looking for adventure.'

57.2% of those surveyed had a graduate or post-graduate degree, while only 1.8% of respondents claimed to have no qualifications at all.

Another finding showed that the majority of employees coming to Qatar experienced a sharp increase in their salary with the proportion of those earning $1,000-$2,000 a month - before relocating to Qatar - going up from 13.7% to 25.7%. The proportion of those earning $2,001-$4,000 a month more than doubled from 12.4% to 25.7%.

The survey questioned more than 220 employees working in Qatar.

Qatar Visitor editor Philip Beech said: ‘We hope that the results of this survey will help give our users an idea of how to look for work in Qatar, the likelihood of finding work and also what to expect when they get here.

‘The majority of our users actually come to qatarvisitor.com looking for work,' Beech added.

ILQ official Khalifa Saleh said: ‘The results clearly show that there is increased usage of online portals by those seeking jobs in the Middle East. It's undoubtedly going to increase in popularity in the future.

‘Unfortunately, the results also show that there is a greater need for the regulation of employment agencies,' Saleh added.

Source: www.propertywire.com

Villas galore for Abu Dhabi

Catherine Deshayes — 26/08/2009 11:12:00

Almost 17,000 new villas in 23 locations are set to be built in Abu Dhabi in the next five years, it has been announced...

The news is regarded as a sign of growing confidence in the property market in the Middle East with developers being prepared to invest in the future after months of announcements about cancelled and delayed projects.

The developments are aimed at providing property for local people and it is being hailed as a significant move away from the kind of off-plan developments that created rampant speculation in places like Dubai and is thought to be partly to blame for the severe downturn in the emirate's real estate market.

Khamis Sultan al Suwaidi, the director general of a body established by the Urban Planning Council to ensure the buildings are developed to an acceptable standard, said that the Abu Dhabi Centre for Housing and Service Facilities Development will oversee the building of new homes.

The centre will also monitor the development of 10,500 villas South of Shamkha and a smaller 168 villa project at Al Falah.

'The Government wants locals to have a high standard of living. 'We are not compromising on quality for the locals,' Suwaidi said.

Abu Dhabi based property developer Aldar Properties has also announced it will build 5,000 villas at Al Falah which is a master planned community for UAE nationals as part of the Plan Abu Dhabi 2030 directive.

Located to the east of Abu Dhabi International Airport and the Abu Dhabi-Dubai highway, Al Falah has been designed as a practical and sustainable community within a development area of approximately 12 million square metres.

Source: www.propertywire.com

Arrested development

Catherine Deshayes — 26/08/2009 11:07:00

The Gulf states' tough stance on drugs, alcohol and indecency mean that more holidaymakers and expats are detained there than in more popular destinations such as France or Greece...

In the past year an unmarried British couple, Michelle Palmer and Vince Acors, were sentenced to three months in jail for having drunken sex on a beach in Dubai.

An English mother, Marnie Pearce, also spent three months behind bars in the Arab state after being convicted of adultery.

The Foreign Office warns travellers that they could face more severe punishments abroad for behaving badly than they would at home.

Chris Bryant, the Foreign Office minister, said: "Researching the local laws and customs before you travel could avoid time in a foreign jail."

Overall, 6,919 British nationals were arrested or detained abroad between April 2008 and March this year.

In the top 10 countries there were 5,266 arrests compared with 4,603 for 2006-7, but the Foreign Office says a new automated method of recording the data means the figures are incomparable.

The most arrests were in Spain (2,290) and the US (1,534) but proportionately the most were in the UAE (294), which has fewer British visitors and residents than many Western countries.

Of the arrests in the UAE - a federation of seven oil-rich states in the Persian Gulf including Dubai and Abu Dhabi - 48 were for drug offences.

Although the area is now home to 55,000 Britons and a further 1.1m UK tourists visited its resorts and shopping malls last year, Islam remains the official religion and strict punishments are meted out to those who break its rules on temperance and modesty.

The new British Behaviour Abroad report also shows that 5,629 Britons died overseas in the past year. Many were from natural causes as well as accidents or murders.

A further 3,146 Britons required hospital treatment, with officials claiming that many cases resulted from drunken falls off hotel balconies or moped crashes.

Around the world, 116 UK nationals reported they had been raped (most in Greece and Spain) while a further 154 said they had been sexually assaulted (the most in Spain, Turkey and Egypt).

In addition, 29,774 needed help from their local consulate or embassy after losing their passports or having them stolen.

Countries where most Britons were arrested, 2008-9

Country British residents and tourists Arrests

Spain 17,761,000 2,290

USA 7,178,000 1,534

UAE 1,155,000 294

Greece 3,018,000 237

Cyprus 1,359,000 205

Thailand 853,000 202

France 14,200,000 193

Germany 2,487,320 148

China 1,247,988 129

Australia 1,970,000 120

Source: Foreign & Commonwealth Office and www.telegraph.co.uk

The eastern effect

Catherine Deshayes — 31/07/2009 11:14:00

The full extent of the economic downturn on Middle East property companies is beginning to emerge with huge second quarter losses...

Now there are fears that developers will be hard pressed to find the finance to launch new projects in the future. Although others point out that consolidation may help.

Emaar, the largest developer in the Middle East has reported an AED1.29 billion net loss in the second quarter of 2009. It blames writedowns on its US subsidiary John Laing Homes.

The figures show what a huge difference a year makes in the real estate world. In the second quarter of 2008 the company posted an AED2.12 billion profit.

Also a year ago companies like Emaar were expanding abroad, hence its acquisition of John Laing Homes, but now many are staying closer to home and even pulling out of international projects as they lick their wounds.

'The first half of the year was extremely challenging as we steered the company through new market realities. We succeeded in identifying the right opportunities that co-existed with the challenges and focused on project delivery,' said Emaar chairman Mohamed Alabbar.

He emphasized that there were also positive outcomes in the first half of the year. He said that Emaar's shopping malls and retail subsidiary had created 10,000 jobs in its mall and hospitality projects.

But it has been hard hit by sales. Second quarter sales plummeted 65 per cent from AED5.60 billion last year to AED1.94 billion in 2009. Second quarter net operating profit sunk 79 per cent.

Others in the property sector claimed that the results were worse than expected. 'These results are worse than expected but it is important to highlight that the revenue mix is diversifying both operationally, in terms of greater recurring income, and geographically,' explained Sana Kapadi, analyst with EFG Hermes.

Meanwhile Abu Dhabi developer Aldar Properties' second-quarter net profit slumped 79.7per cent as it made no land sales during the first half of the year. The largest developer in the Gulf Arab emirate by market capitalisation made a second-quarter net profit of AED 251.4 million, some way short of an average analyst forecast of AED283.5 million.

Chief financial officer Shafqat Malik said it was a direct result of the lack of land sales.

Source: www.propertywire.com

UAE leads the way

Catherine Deshayes — 28/07/2009 11:59:00

The United Arab Emirates is leading the way in development in the Gulf region with almost $930 billion worth of projects currently underway, according to a new report...

A study from the Kuwait National Bank says that this amounts to 45 per cent of all projects planned in the Gulf area which amounts to some $2.1 trillion.

The report shows the extent of the boom in development in the region. The value of property construction is four times higher than had been estimated in June 2005 and represents an annual growth rate of nearly 50 per cent.

'The UAE accounts for by far the biggest share of project activity, totalling around $929 billion and affirming its position as the leading GCC country in attracting capital investment. Some 81 per cent of the UAE projects are in the construction sector,' the report says.

The report shows that the construction sector dominates in every GCC country while the total value of projects in the UAE is far higher than anywhere else. Although Saudi Arabia has a much larger base of non-construction related projects, some $224 billion which is 28 per cent more than in the UAE. 'This probably reflects the larger size of the Saudi economy in absolute terms, necessitating a greater degree of industrial diversification,' the report says.

Also the higher value of non-construction related projects in Saudi Arabia stems largely from the petrochemical, power and utilities sectors. At a combined $127 billion, the value of the Kingdom's projects in those sectors is about 35 per cent larger than in the UAE.

The overwhelming balance of non-construction-related projects in other GCC countries comes in the oil and gas, power and utilities sectors, with the latter reflecting the region's growing domestic power needs, the report adds.

Source: ww.propertywire.com

RAK's new protection

Catherine Deshayes — 06/07/2009 11:15:00

A new property regulatory authority has been introduced in Ras Al Khaimah giving a new layer of protection to real estate investors in the emirate...

The Ras Al Khaimah Investment Authority (RAKIA) Real Estate Regulatory Agency will oversee the implementation of escrow accounts law fro all freehold development projects, officials said.

Several property developers have already registered their projects with RAKIA RERA, which is similar to the Real Estate Regulatory Authority operating in Dubai, and the new watchdog will now monitor developments with a collective value of £1 billion.

Developers can only register when their project's concept design has been approved, which will then allow them to open an escrow account and start selling properties. RAKIA RERA will also oversee the construction by sending out a team of engineers to inspect projects.

'The escrow account has been implemented to prevent mishandling of construction funds and ensure that investors' money is spent according to the master plan of the project,' said Yahia Kambris, General Manager.

'The establishment of the new real estate watchdog is an important step in our efforts to safeguard and protect the interest of investors and reinforce the reputation of Ras Al Khaimah as an attractive and practical investment destination in the region,' he added.

Among the developers that have registered with RAKIA RERA include Select Group, the developer of Pacific; Manazil Real Estate, which is developing Marbella Bay; Pure real estate, developer of Blue Mirage; Stallion Properties, which is developing Santorini; and e-myproperty, developer of Bab Al Badr.

Yes Properties, developer of The Quay, is also currently completing the registration process and will soon open an escrow account.

Several banks, including Badr Al Islami-Mashreq, Bank of Baroda, Commercial Bank of Dubai, Abu Dhabi Commercial Bank and Dubai Islamic Bank, have also signed an agreement with RERA to offer escrow accounts.

Source: www.propertywire.com

Sort out disputes

Catherine Deshayes — 03/07/2009 10:43:00

The Government in Ajman will soon introduce a committee equipped to quickly deal with property disputes...

Omar al Barguthi, the Director General of the Ajman Real-Estate Regulatory Authority (ARRA), said, "This committee will be looking exclusively at real estate conflicts that have arisen due to a party not meeting his contractual obligations."

"The committee will be formed of five members nominated by the Executive council and headed by an experienced judge assigned by the ministry of justice," said Mr Barguthi.

"Any person can file a case there. Whatever this authority decides will be implemented and go into effect. It will be faster and cheaper than going to the court."

Although demand for property in Ajman has waned over the past few months, the emirate has a potentially bright future, with a number of new developments being constructed across the city, presenting potentially good long-term property investment returns.

Source: www.homesoverseas.co.uk/news

Abu Dhabi rents on the up

Catherine Deshayes — 29/06/2009 10:44:00

Residential rents in Abu Dhabi have increased by up to 20 per cent this month despite analysts forecasting that they would fall...

Rent prices fell during April and May by up to 15 per cent and tenants and property agents had expected to see further falls this month and in July because thousands of residents were expected to leave Abu Dhabi because of rising living costs and job losses.

But instead there is also a shortage of rentals due to an influx of residents from Dubai and some international companies increasing accommodation allowances.

Also property owners are stubbornly refusing to drop their rents so tenants have little choice but to pay the going rate and are getting nowhere when they try to negotiate discounts.

Real estate professionals said rents were going up in cases where the management of residential buildings had been transferred from the Government's Administration of Commercial Building to national owners or real estate companies.

'The majority of these owners have stopped renting their properties, leading to a reduction in supply and forcing tenants to take the remaining properties on the owners' terms and agree to higher rents,' said a Spokesman.

But the industry does expect rents to fall in the long term. At the beginning of next year some 30 large residential towers are due for completion and this will inevitably force down prices, they claim.

'We expected a decline in June with the academic year ending and many families departing for good, but what happened was the total opposite. The power of the property owners is the main reason,' explained Khaled Mohammed Ibrahim, Executive Director of Al Bayan Real Estate.

Khalid Salah, President of Abu Dhabi-based Baynounah Real Estate, said large Government owned companies were also responsible for increases. Oil companies, in particular Adnoc, had increased the accommodation allowances they paid their staff by 100 per cent.

Now many would like to see some kind of regulation. There is concern about landlords paying tenants to vacate properties so that they can re-let them a much higher rents. Tenants can take complaints to the Judicial Conflicts Settlements Committee but settling a case can take a long time.

'The real estate market in Abu Dhabi badly needs to be regulated by law. It is neither acceptable nor logical to leave the market to owners who rent out property as they like and charge the prices they want,' said Salah.

Source: www.propertywire.com

Loan rate cut for UAE

Catherine Deshayes — 26/06/2009 10:30:00

International bank HSBC, has announced that it intend to cut its Flexi Loan mortgage rate by one per cent next month for customers seeking to buy UAE property...

The mortgage borrowing rate reduction will also apply to home finance customers of the bank's Islamic unit, HSBC Amanah.

The bank also said customers of its tracker EIBOR based mortgage will see their rate adjusted to the three-month EIBOR rate.

Source: www.homesoverseas.co.uk/news

More hope for global markets

Catherine Deshayes — 26/06/2009 10:29:00

There were more signs of improvement for property markets around the world this morning, after the Organisation for Economic Cooperation and Development (OECD) optimistically projected that the world recession was "nearing the bottom" following a sharp decline in the six months to March...

The OECD projects that the world's most affluent nations will see their economies contract by 4.1 per cent in 2009, compared with a previous estimation of -4.3 per cent in March.

This is the first time since 2007 the OECD has revised upwards its estimation for the world's economy.

The USA property market may soon see better times, after the OECD, which represents the 30 richest industrialised countries, noticed signs of stronger economic growth in America, as well as China.

The OECD believes that the global economic recovery will be "weak and fragile" in the short to medium term, with the world's richest countries collectively expected to grow by 0.7per cent in 2010, which, although low, is better than the previous prediction of -0.1 per cent.

The OCED described the recession in the UK as "sharp", and projects that the country's economy will contract by 4.3 per cent in 2009, which is worse than its previous estimation of a 3.7 per cent fall, and lower than the average 4.1 per cent economic decline for the world's richest 30 nations.

Source: www.homesoverseas.co.uk/news

Boobie prize

Catherine Deshayes — 18/06/2009 09:30:00

Half of all women who sunbathe topless risk prosecution by failing to check if it is against local laws, the Foreign Office warned this week...

The research found that hundreds of thousands of women risk fines, imprisonment or prosecution each year by failing to adhere to local laws. In total, a quarter of the 2000 women surveyed admitted to sunbathing topless on holiday.

The Foreign Office research also found that one in seven men admitted to having had sex in a public place on holiday, while one in 20 men also confessed to exposing themselves when abroad.

A spokesman for the Foreign Office warned that there have been several cases of British nationals being charged with indecent public exposure.

It follows the wake of several recent high profile case of British couple jailed in Dubai earlier this month after being caught having sex on the beach and a stag-do party being arrested in Crete for indecent exposure and offending religious symbols, when dressed as nuns.

The Foreign Office urged people to check out local laws and customs before taking such risks.

"Different countries have different laws and customs, and what's acceptable in Spain may not be acceptable in Greece or Turkey," said Jess Prasad of the Foreign Office. "With more people travelling outside the Eurozone this year it is ever more important that people familiarise themselves with the local laws and customs before they go."

Most problems with drunken behaviour abroad happen in Spain. The Foreign Office said that the number of Britons arrested in Spain rose by almost in 2007 - in total, there were 2,032 Britons detained from April 2006 to March 2007.

The Foreign Office said many arrests abroad were due to "behaviour caused by excessive drinking".

The Foreign Office is keen to alert travellers:

Homosexuality is illegal in many popular holiday destinations including Morocco, Barbados and Goa.

Public displays of affection could lead to arrest in Egypt.

Wearing skirts above the knee in many Middle-Eastern countries is not accepted and could lead to fines.

Rude gestures in Dubai are considered to be an obscene act and offenders can be prosecuted.

Topless sunbathing in Abu Dhabi is forbidden and liable to be punished by imprisonment or deportation.

Source: www.telegraph.co.uk

Ajman project on track

Catherine Deshayes — 18/06/2009 09:19:00

Property developer Aqaar has confirmed that the first phase of Ajman One, the emirate's first fully integrated complex, is on schedule for completion and handover in Q1 2011...

Ten of the 12 residential towers in the £440 million mixed-use scheme have already sold out, illustrating that there is much demand for good quality property in Ajman.

Rami Dabbas, CEO of Aqaar told the press, "We aimed from the beginning to build a long-term strategy, based on three key elements: professionalism, by partnering with reputable contractors; sustainability, by developing self-funded projects; and pro-activity, by offering a unique and flexible payment scheme which can meet our client's needs under any circumstances.

"Despite the current tough situation, our investors, who are mostly end-users, can look forward to receiving their keys without any hassles. This strongly demonstrates our forward-thinking values and strategic plans are well in place," he added.

Phase one of Ajman One will consist of 3,000 apartments. Aqaar is one of the first developers to register with Ajman Real Estate Regulatory Agency, permitting the firm to sale residential units.

Source: www.homesoverseas.co.uk/news

UAE price rise?

Jude Buttle — 11/06/2009 10:19:00

UAE property prices rose in April and May, according to HSBC...

The bank states that Abu Dhabi property values and Dubai property prices appreciated by four per cent in April and five per cent in May, but said that it was still far too early to tell if the market had bottomed out.

A survey conducted by the bank also reveals that a growing number of property agents feel that property prices are starting to stabilise on the back of greater demand for properties, combined with a fall in residential stock.

Despite the recent price growth, the average price of a sold home in the UAE has fallen by 23 per cent since the peak of the market in September, while average asking prices have fallen by 65 per cent.

Source: www.homesoverseas.co.uk/news

New rules for the Gulf

Jude Buttle — 10/06/2009 09:53:00

New property regulations are expected in several Gulf States in the coming months as authorities aim to bolster investor confidence by making the real estate industry more transparent...

In Ajman the Real Estate Regulatory Agency is to introduce new regulations by the end of this month to link payments to construction. This is an issue that has caused problems recently in Abu Dhabi where investors in the Hydra Village flagship development have been angered by demands for payments despite the project being two years behind schedule.

'We have come up with a new formula for collecting payments in relation to the progress of the construction of the project in Ajman,' said Omar Al Barguthi, Director General of Arra.

'There will be very specific and clear guidelines for payments to be paid by the developer to the master-developer and the property buyer to the developer,' he added.

Last week Arra set a new deadline of July 1st for property developers in Ajman who have not completed their registration procedures with the agency and warned that it will impose fines or penalties against developers unless there is a valid reason for any further delay.

In Dubai authorities are working on another new set of regulations aimed at increasing confidence in a sector which is experiencing a growing number of disputes between investors and developers because of the credit crunch.

The Government recently published Law 9 of 2009, an amendment that introduced a sliding scale of refunds for buyers who defaulted on their purchase plans for property in off-plan developments.

But bigger changes are in the offing. The Real Estate Regulatory Authority and Dubai land Department are working on details of how Law 9 and other property laws are to be interpreted and administered.

One problem with the law is that many cases fall outside the situations described in its wording. For example, what happens when a purchaser who has paid 80per cent on a property then defaults on the remaining amount after completion of the unit. Law 9 says in this case, the buyer loses all their money, which many judge would be unfair.

The authority is looking to clarify this situation whereby the buyer could still receive the unit and owe the developer the remaining 20 per cent.

Clarification is also needed over how RERA will assess a project's viability before making a decision on how to cancel it. Questions are being raised over what happens when RERA cancels a project but there is no money left in the escrow account.

Source: http://www.propertywire.com

Nakheel to merge

Catherine Deshayes — 03/06/2009 09:42:00

State owned developer Nakheel is to merge with the real estate arm of the Dubai Multi Commodities Centre because of current market conditions...

The decision is regarded as an attempt to consolidate and re-structure the businesses which are both owned by Dubai world which in turn is owned by the Dubai government. It should result in a cut in operating costs.

'DMCC's property related operations have been integrated with Nakheel to better accommodate current market conditions and optimise resources and expertise,' Nakheel and DMCC said in a joint statement.

'I expect what is important now is for the respective companies to start putting in place restructural changes that allow them to compete more effectively as the market improves,' said Blair Hagkull, Managing Director, Middle East and North Africa, at Jones Lang LaSalle.

Companies consolidating to ensure growth will be reassuring to investors, he explained. 'This year is all about consolidation. The key is to be guided by early points of recovery but to recognise that some aspects need to be addressed, like how big companies that have done well in the past, do well in the future,' Hagkull added.

'I think it does make sense. All entities, not just Nakheel, are looking to save costs and reduce their economies of scale,' said Nicholas Maclean, managing director of CB Richard Ellis, Middle East.

It is unlikely to be the only merger this year with most property developers strapped for cash as bank continue to restrict lending and property investors default on payments. Marwan Bin Galita, Chief Executive of Dubai's Real Estate Regulatory Authority predicted at the start of the year that 25 per cent of projects or developers themselves would merge in light of the economic slowdown.

According to Robert McKinnon, the Head of Research at Al Mal Capital, an investment bank in Dubai, the main benefit of consolidation will be to pool resources to enable firms which would otherwise be competitors to survive the downturn.

'I don't see much financial benefit in a lot of cases for the mergers that have been discussed. But with so many Dubai entities in the development game, it probably makes sense, from a control, quality and management standpoint, to shrink it down so that they're not all competing with each other and there's more co-operation and planning involved,' he explained.

Source: www.propertywire.com

UAE prices on the rise?

Catherine Deshayes — 01/06/2009 10:38:00

Property prices in the United Arab Emirates increased in April and May, according to international bank HSBC...

Prices in Dubai and Abu Dhabi rose four per cent in April compared with March and five per cent in May, says the bank's latest transaction survey. But it warned that it is too early to call it a trend.

'Market data from April and May show a range of positive indicators. Agreed property sale prices are rising, volumes are holding up well, and banks have loosened their lending criteria,' said David Lepper, Head of Equity Research for the region.

'However, we will not be able to discern a sustainable trend until later in 2009 and while we note these positive developments, the market as a whole is coming off a very low base, given the sharp declines since the market peak. Credit growth remains subdued, and the UAE economy still has challenges to deal with,' he added.

A survey of brokers by the bank also confirmed that prices have started to stabilise on the back of renewed interest and sellers pulling their properties off the market or putting them up for lease.

'Foreign investors also seem to be back in the market and the majority of transactions are being conducted in cash,' says a report from a team of analysts.

However compared with the peak in the market last September property prices are still considerably lower. Agreed prices are down 23 per cent while asking prices were 65 per cent lower.

The result is a lot of price confusion in the region's real estate markets. Panic selling by Dubai property speculators is driving prices down, eroding confidence and making banks reluctant to lend, according to Mohammed Nimer, CEO of MAG Group Properties.

He believes that a mass sell-off by speculators has contributed to Dubai's housing crash. 'Speculators were originally responsible for driving property prices to unrealistic levels. Now, although they are on the receiving end of the slump in prices, they are still blightin

Source: www.propertywire.com

Growth for RAK free trade zone

Catherine Deshayes — 07/05/2009 09:27:00

Ras al Khaimah reported an estimated 16 per cent increase in revenues in the first quarter of 2009, compared with the first quarter of last...

RAK FTZ, one of the fastest-growing free trade zones globally, also reflected a four per cent increase in company registrations compared with the same period in 2008.

The RAK FTZ is home to over 5,800 companies and contributes an estimated £1.8 billion to Ras al Khaimah EconomyFuture investments of £1.3 billion are also under way or planned to ensure continued growth and unparalleled achievement.

Despite the global economic crisis, the free zone has continued to attract new businesses in industries spanning IT, consulting, manufacturing and trading.

"Everybody at RAK FTZ works hard, and we are proud to see that hard work is paying off with a further increase in business and revenues," said Oussama Al Omari, CEO and Director General of RAK FTZ.

"This success is also directly linked to our new liaison offices in New York, Miami and Hong Kong, on top of the offices in Germany, Turkey and India. We actively promote our state-of-the-art facilities with quick and friendly service.

"We participate in trade shows and conferences all over the world, making it easy for companies which are looking to expand internationally."

Source: www.selectproperty.com

Ajman: must register before May

Catherine Deshayes — 28/04/2009 09:36:00

Developers and master developers in the Gulf emirate of Ajman have until the first of May to register to sell off-plan properties or find themselves operating illegally...

The recently formed Ajman Real Estate Regulatory Agency said that there will be no extension to the deadline and no exceptions to the rule.

It says there is still time for developers to register on a preliminary basis even if they do not have full documentation in place as this gets them into the system by the deadline. 'We will complete their registration but we will not be considering any applications after May 1st,' said ARRA Director General Omar Al Barguthi.

'Anybody failing to register with before May 1st will be considered to be operating in Ajman in violation of the Emiri decree and will face penalties from a minimum of £18,000 onwards,' he added.

ARRA is also clamping down on the misrepresentation of facts or giving false information through advertisements. 'We have already penalised a few developers for giving false information in advertisements. Anyone who wants to publish advertisements will now have to get an approval number from us, which has to be published in all their ad campaigns,' explained Al Barguthi.

Payments through escrow accounts are now mandatory for all developers. Ajman Bank is offering the escrow bank facility in the emirate.

Al Barguthi said that the agency aims to create a safe property investment climate and appropriate real estate business environment in Ajman. 'Registration will be an advantage for both developers and investors alike,' he said.

Ajman's burgeoning property construction market includes some of the most high-profile UAE developments outside of Dubai which already has the Real Estate Regulatory Authority.

Ajman's property market is not as internationally recognised as Dubai's but the state was the second in the UAE to offer freehold property after Dubai.

Source: www.propertywire.com

Islamic banks need bailout

Catherine Deshayes — 16/04/2009 09:23:00

Islamic banks may require further bailouts if liquidity does not improve, leading bankers have announced...

Sohail Zubairi, Chief Executive of Dar Al Sharia consultancy, said that it is essential the mortgage market condition improve by Q3 if some banks are to survive.

"Anything is possible in this scenario," he told the Reuters Islamic Banking and Finance Summit in Dubai.

Dar Al Sharia was set up in July 2008 by Dubai Islamic Bank to provide financial and legal expertise for the Islamic finance industry. However, the Islamic financial sector, initially thought to be immune to the West's financial turmoil, due to its conservative nature and ban on speculation, is now feeling the pinch.

"There is a real threat to the business of Islamic banking," Zubairi added, referring to the Islamic lending sector overall.

"If the liquidity does not return, we will not be able to continue doing our business."

Yousif Khalaf, Chief Executive of Ajman Bank, said bankers "growth and profitability are no longer important objectives for 2009. What is more important is survival."

The Dubai Government launched a £20 billion bond scheme in March, of which the UAE Central Bank bought £7.5 billion, which it is in the process of handing out to struggling companies and banks.

The second £7.5 billion is on the way to help restore liquidity and provide financing to a cash-strapped economy.

Source: www.homesoverseas.co.uk/news