'Italian' luxury units in Dubai Marina priced at Dh30,000 psm

'Italian' luxury units in Dubai Marina priced at Dh30,000 psm

Damac Residenze apartments will be designed by Fendi Casa

• By Parag Deulgaonkar
• Published Monday, February 11, 2013

The lobby at DAMAC Residenze (All Pictures: SUPPLIED)

The ceilings, the walls and the floors - everything - in the bespoke apartments in Dh1.2-billion Damac Residenze project will be designed by Fendi Casa, Italian luxury house.

And those seeking to live in these exclusive units. from the 43rd to 84th level, in Dubai Marina will have to fork out Dh30,000 per square metre (Dh2,788 per square feet) to own them.

Damac Properties, a Dubai-based developer which has 68 towers under construction, said on Sunday that the 350-metre-high tower is already
under construction and is scheduled for completion in 2016.

The project, which has over 200 units, is being constructed by Arabtec, said Ziad El Chaar, Managing Director, Damac Properties.

Although the company brochure does not reveal the size of a one-bed apartment or penthouses, a 1,200 square feet unit will cost over Dh33 million while 3000 square feet penthouse will cost more than Dh84 million.

Asked if Damac will contain “flipping” of units in the project, El Chaar said the company was focusing on getting end-users from India, the UK and Russia, it did not have any regulations to prohibit resale by investors.

'Emirates24/7' reported earlier that investors in Emaar Properties’ The Address Fountain Views project were not allowed to resell their units
unless they have made a 40 per cent payment.

The developer also unveiled the SR800-million Damac Esclusiva Luxury Service Apartments, a 150-metre-high tower overlooking the Kingdom
Tower in Riyadh, Saudi Arabia, in association with Fendi.

The tower will have 100 luxury serviced apartments is under construction. It is scheduled to be completed in 2016.

Emphasizing on the recovery of the regional real estate market, Hussain Sajwani, Chairman, Damac Properties, said, “The real estate market in both Riyadh and Dubai are again performing strongly, especially in the high-end, luxury sector. We believe there will be a very high level of anticipation for these apartments from nationals and overseas investors.”

Damac has completed 37 buildings to date with 7,817 units, there are 10,000 units are under design and development. The company’s new
hospitality division is set to manage 4,000 hotel apartments by end-2013.

Rent set to play budget villain: UAE residents

An Emirates 24l7 online poll on what will the biggest items of expenditure in the new year placed rent and property investment at the top

UAE residents have voted on what’s most likely to eat up their incomes and cash reserves in 2013.

In an Emirates 24l7 online poll, they have chosen what will top their list of expenditures.

Forty-one per cent of those who voted (167 readers) picked rent as the one that is likely to cause them the maximum damage.

With rents in most areas on the rise, it is evident why it tops the list.

A recent report from CB Richard Ellis (CBRE), as reported in Emirates 24l7, has recorded 17 per cent increase in apartment rents in 2012, with experts predicting 2013 will only see an upward swing.

“We had to negotiate with our landlord and agree to a rent increase of Dh8,000,” said a resident at Executive Towers, on condition of anonymity. “Either that, or we would have had to move out.”

Another resident, who refused to pay up, was asked to vacate his apartment in the same building.

“Rents are rising everywhere. Nobody wants to vacate because they know that they will have to pay more no matter where they go,” said Ritika, a resident of Buhairah Corinche, where the rents were raised.

The next major item of expenditure will be property and/or other investments, according to those polled.

Twenty-four per cent (97 readers) voted investment in property as their major item of expenditure.

Though it wasn’t clear whether the investments were in Dubai or overseas, some residents admitted that property values in Dubai have gone up and that it’s no longer a buyer’s market.

Despite that, many residents are still looking at investing in property here.

“I know that prices have increased but I still believe that investing here will bring us much greater returns than buying property back home in India,” said Thommen, a marketing executive in Dubai.

With most reputed schools in Dubai hiking their tuition fees in the new year, it’s only natural that education expenses should worry 11 per cent (44) of Emirates 24l7 readers.

“Nobody wants to sacrifice their child’s education. No one budgets it,” said an Indian parent, who will be paying six percent more on tuition fees this academic year.

In other items of expenditure, annual holidays recorded six percent, while ‘others’ was at sevem per cent, and medical expenses at two per cent.

Since most companies provide medical insurance for their employees, it’s obvious why only two per cent of those polled were worried about hospital bills.

Investor News for 2013!

Dubai real estate on growth curve, prices, rents will rise in 2013: JLL

Prime rents in office segment set to rise; No upturn expected in Abu Dhabi

            By Parag Deulgaonkar via emirates247.com

Published Monday, January 21, 2013

A broad based recovery will be seen in all segments of Dubai real estate market in 2013, with prime office rents rising for the first time since 2008, according to Jones Lang LaSalle (JLL).

Alan Robertson, Chief Executive Officer, JLL MENA, said: “With an increase of 65 per cent in the number of transactions in 2012, the Dubai real estate sector will continue to shift up a gear in 2013, experiencing a broader based recovery on the back of continued economic growth.”

He added that Abu Dhabi remains 18 to 24 months behind Dubai with the market not expected to experience an upturn this year.

“The foundations are, however, being laid for a recovery from 2014, with a number of major infrastructure projects scheduled to start later this year.”

Total value of real estate transactions in Dubai crossed Dh143 billion in 2011. The Dubai Land Department is yet to officially announce 2012 figures.

Craig Plumb, Head of Research, JLL Mena, while announcing the consultancy’s Top Trends for the UAE real estate market in 2013, said: “Price and rent recovery are likely to be more broader this year than 2012 when it was limited to few selected locations. We saw price growth in Dubai by 20 per cent in 2012... we will not see prices increasing 20 per cent this year, but overall rate of growth will be less than last year.”

Residential stock in close proximity to the Metro stations will see increase in prices and rents, Plumb added.

Plumb, however, said that the new regulation on housing allowances for government employees and a possible reverse migration to the capital due to rental growth in Dubai will have a positive impact on the market.

In September, the emirate’s Secretariat General of the Executive Council said that Abu Dhabi government employees would be required to live inside the capital within a year.

The decision was made to ensure the safety of employees commuting long distances, often in bad weather conditions, the council said. As many as 19,564 people drive into Abu Dhabi in the morning hours.

Nearly 18,000 units will be completed in Dubai while Abu Dhabi will see completion of 16,000 units this year.

Free zones to gain

Prime office rents, primarily in Dubai International Financial Centre, Tecom and Downtown Dubai, with single ownership, will rise this year, Plumb disclosed, adding secondary locations will not see any such increases.

“Office rents have declined in Dubai since 2008, but we expect to see an increase in rents in selective properties in best locations this year. There will be some parts where there will be no increase largely because vacancy rates are as high as 60 to 70 in some office locations.”

Abu Dhabi, he said, will continue see softening of rents due to limited demand from private sector. The market is more driven by government sector, who prefer to occupy their own buildings.

“… there will be more choice of good quality buildings in Abu Dhabi in 2013.”

This year, however, will see more companies in the UAE adopting a better workplace strategy.

“Tenants will remain cautious. They will upgrade to better quality space or even consolidate to one building from different buildings as they seek better return from their real estate,” believes Plumb.

New investors

According to Robertson, the real estate in both markets will benefit from increased economic activity between the UAE and East Asia, specifically China and South Korea, as well as sub Saharan Africa and Australia.

“We also look forward to the Expo 2020 announcement in November. Success will be a significant boost to the domestic real estate market, hence our continued support as an official bid supporter.”

Indians, Britons, Iranians, Saudis and Pakistanis have been the largest investors in Dubai’s real estate sector for the past few years.

The following are the seven top trends for the UAE Real Estate:

Return of confidence to the Dubai market: Factors such as the UAE’s economic growth, increased employment, Dubai’s safe haven status and improved price/rental performance have led to continued market confidence. With many real estate project announcements over the past six months, this increased market confidence has become more pronounced. The government is keen to create a more stable market environment as illustrated by the new mortgage caps from the UAE Central Bank.

Funding real estate development in 2013: Funding constraints will apply a natural brake on the pace of new development. Usual real estate financing routes such as off plan sales, IPO/bond issues or bank lending are already challenged. LTV ratio caps might also act as a deterrent as it will limit availability of mortgage finance to end users. In 2013, new development funding is likely to come from overseas cash purchasers and private money from other businesses.

Increased involvement from East Asia and the Global South: Increased real estate investment is expected from China and South Korea due to greater business cooperation with the UAE. Chinese involvement is particularly pronounced in the retail sector and is likely to continue in 2013 along with possible investments in the hotel and tourism sectors. There is also increasing interest from Sub Saharan Africa, particularly from oil rich countries like Angola and Nigeria

Increased choice as supply levels remain significant: Buyers and tenants will have a multitude of choices in some sectors in 2013, with significant levels of new supply acting as a constraint on the overall performance of the UAE real estate sector, possibly offsetting the positive impact of improved market sentiment.

Operational and financial management: In 2013, there will be greater awareness of the importance of both the operational and financial aspects of property management. Operational issues are getting increased attention due to various factors like health/safety considerations, demanding occupiers, stringent legislations and adoption of best practices. On the other hand, financial issues are also becoming increasingly important as more focus is given towards greater transparency of operating costs. Best value approaches are likely to be more widely applied, rather than lowest cost options.

Sustainability: With continued progress in 2012, sustainability is expected to move into even greater focus in 2013. With Masdar and Estidama regulations, Abu Dhabi will continue to take the lead. Most sustainability initiatives in 2013 are likely to be micro and small scale as there is a general reluctance among owners to accept green leases. Evidence from overseas suggests sustainability is unlikely to be fully embraced until either government regulations force change or there is shift in local market perceptions about the financial viability of green buildings.

Government initiatives: The government will remain a major player influencing the UAE real estate market in 2013. Initiatives such as the UAE Central Bank mortgage cap, approval of the Dubai Urban Planning Framework and consolidation of real estate players in Abu Dhabi will better regulate or tighten control on market conditions. While initiatives such as regulation on housing allowances for Abu Dhabi government employees, announcement of major government back projects and Dh330 billion stimulus package in Abu Dhabi will stimulate demand and market performance.

Beware of Unregistered Property Agents in Dubai

Beware of Unregistered Property Agents in Dubai

Hundreds of people have been swindled in Dubai property scam. Residents are facing eviction after falling victim to a huge property scam in the emirate. Leaseholders in Emaar’s The Greens have nowhere to turn after Dubai-based Shamyana Entertainment Services cashed rental cheques but failed to pass the full amount onto the landlord. To make matters worse, Shamyana Entertainment Services’ owner has fled Dubai.

It is understood that Hamptons, owned by Emaar, originally leased the apartments to Shamyana, though last night the company said it was investigating the matter.

“As with others involved in providing property services, Hamptons MENA acted in good faith in leasing out a few apartments to Shamyana Entertainment Services. These apartments were to be used only for the company’s staff accommodation purposes, as per the rental agreement.

“Following reports of inconsistency, we requested the residents in these apartments to present their tenancy contracts, when it was learnt that several of them were illegally sub-let by Shamyana to others.

“We are currently investigating the matter and will work with the concerned authorities to address the same.”

Buyer beware! Make sure that you visit the RERA website to check that the broker you are dealing with is registered and the agent who completes the paperwork has RERA identity card. If either of this vital details are not presented, we recommend that you walk away.

Foreign Property Owners Increase

Indians are top foreign property owners in Dubai

Foreign ownership in emirate’s real estate sector exceeds Dh39bn

By

Staff via emirates247.com

Published Monday, January 09, 2012

Foreigners pumped more than Dh39 billion into Dubai’s property sector in 2011 and Indians emerged as the largest investors, followed by Britons.

The investments covered 23,196 freehold properties and accounted for more than a quarter of the total property market of Dh143 billion during 2011.

The figures, published by the Sharjah-based Alkhaleej Arabic language newspaper, showed Indians invested around Dh6.97 billion in 4,176 properties, nearly 18 per cent of the total foreign ownership.

The figures by the Dubai Land and Property Department showed Britons were the second largest investors, pumping around Dh4.79 billon into 2,949 units. They were followed by Pakistanis, with around Dh2.44 billion, Iranians with nearly Dh3.8 billion, Russians with Dh2.03 billion, Americans with about Dh1.19 billion and Saudis with Dh1.44 billion.

Other key investors were the Canadians with Dh1.13 billion, Jordanians with Dh825 million and Lebanese with Dh629 million.

“There was an upsurge in the property market last year due to the support of the government, which will spare no effort to ensure market stability and win the confidence of investors,” the paper said, quoting Sultan Butti bin Mujrin, the Department’s director general.

“The large value of property transactions last year proves that the situation is back to normal, speculators are out, the property market is becoming mature and investors have become more aware of the significance of long-term investment in the emirate’s real estate sector.”

Last Year was a Great Year!

Downtown Dubai rises: Property prices up 10% in Q4 alone

Bump due to high investor demand and no new supply

By

Parag Deulgaonkar

Published Sunday, December 30, 2012 via emirates247

Property prices in Downtown Dubai, a development that houses the iconic Burj Khalifa and Dubai Mall, surged by between six and 10 per cent in the fourth quarter alone, compared to third quarter of 2012, due to high investor demand and no new supply in the area, real estate agents say.

“With the high demand for properties in the Downtown district and decrease in supply and properties being listed for sales or rent, the area has seen an increase in prices as high as 10 per cent in the fourth quarter of 2012 compared to the third quarter,” Asal Abedi, Residential Consultant, Head Office, Better Homes, told Emirates 24|7.

Overall, he estimates property prices in the area to have gone up by 20 to 25 per cent depending on property and location in the Downtown core.

Mohanad Alwadiya, Managing Director, Harbor Real Estate, states demand for properties in the district has pushed prices by six per cent in the fourth quarter alone.

“The sale prices have seen an increase between three and five per cent in the second and third quarter and have further risen by nearly six per cent in the fourth quarter.”

On an average, he believes, Downtown area witnessed an increase of between 11 and 14 per cent in sale prices since the start of the year.

“Downtown has and will always continue to attract tenants as it is a quality development, strategic location and a family friendly community.

“Being one of the most popular residential areas with high occupancy rates also translates to more demand and increased prices.”

Parvees Gafur, Chief Executive Officer, PropSquare Real Estate, admits that the maximum price rise in the district was witnessed in the fourth quarter as demand soared after the launch of The Address The Boulevard apartments.

“Prices have gone up by 15 to 20 per cent from start of the year to date, depending on the towers in the district and offering.”

CB Richard Ellis, in their latest report, said property prices had increased by an average 13 per cent in prime locations, with the Downtown Dubai developments appreciating by over 20 per cent year-on-year.

Emaar Properties, the master developer of Downtown district, has already announced expansion of Dubai Mall and recently launched the “Sky” collection in The Address The BVLD project.

Even a foreclosed property in Downtown Dubai that went under hammer at Dubai Land Department's public auction in early December was sold for almost double the reserve price.

The 76.74 square metre apartment in Reehan 1, Downtown Dubai, was bought for Dh1.39 million (base price: Dh700,000).

Know Who You're Dealing With and Deal With Reputable People!

Yet another rental scam exposed: Fake agents dupe tenants, owners

(via emirates247.com)

By

Joseph George

Published Wednesday, February 20, 2013

Yet another property scam has emerged and this time, it is in International City, Dubai, where scores of tenants are on the verge of being evicted for renting out apartments from fake agents.

A trading company, which also operated out of their offices in International City, allegedly leased several apartments from owners but sublet it to unsuspecting tenants at a lower rate.

The only condition was that tenants had to pay the annual rent in one cheque. Many did.

Meanwhile, the firm that leased out the apartments from the owners by issuing four cheques seems to have closed down its operations, with its staff and managers having disappeared.

Owners whose second and third cheques have bounced are now caught between evicting their tenants and re-negotiating the rent, shouldering a part of the loss.

Nadeem Khan, an owner of one such unit sublet to unsuspecting tenants, told Emirates 24|7 that he was approached by a person called Sajjad of M.A.M., willing to rent out his studio apartment for Dh21,000 per annum, in four cheques.

“We signed the agreement in November. The second cheque was presented in February and it bounced. That is when I discovered the scam. The person who lived in my apartment was a total stranger, and not the one who I rented it out to,” said Khan.

His apartment was sublet by the agency to a Philippines national for Dh15,000.

“I have asked the tenant to move out of the apartment. He has to either pay me the remaining months’ rent or vacate the premises,” Khan insisted.

Speaking with Emirates 24|7, the tenant who did not wish to be identified said, “I have a very meagre salary and I had to take a loan to pay the rent in one cheque. When I rented out the apartment, the ‘agency’ told me that they had the power of attorney from the landlord to manage the property. We were even presented with documents that looked authentic,” he said.

Interestingly, the trading firm even managed to get the tenants’ DEWA connection approved in their names.

Another owner, on the other hand, said he is trying to negotiate the rent with the tenant and recover at least a part of his lost money.

“The tenants are not very rich people, and it’s obvious that they cannot afford higher rents. What I am trying to do is get him to at least pay me the rent for the last quarter,” he said. In his case, the third cheque issued by the firm bounced.

In another case, Shafiq (name changed) says his company had rented out seven different apartments in the England cluster from another agency, G.R.E, for staff accommodation. G.R.E. allegedly operated in partnership with M.A.M.

“Last year, we had rented out two apartments from the same agent, and there was no trouble whatsoever. This year, however, after the third month, we were approached by landlords who asked us to vacate the place as it was illegally subleased,” he said. “

We had no option but to move out. We have already paid the annual rent for all apartments,” he said.

While the owner of G.R.E. has allegedly left the country, that of M.A.M. has been arrested by Dubai Police.

Several complaints have been registered by both tenants and landlords, and officials are investigating the issue.

Million-dirham Dubai property question: Location, location, location?

Million-dirham Dubai property question: Location, location, location?

Is it all about “location” when it comes to investing in property in Dubai?

Opinions are diverse: Those with deep pockets look at location and quality, while those seeking an abode to offset rent hikes in future emphasize on price.

Investors are willing to pay a higher price for location as they look for properties that will appreciate over time and will have a good resale value. They seek projects that will always be in high demand due to their key locations. Good examples are in Downtown Dubai and the Palm Jumeirah.

Before the global financial recession, location wasn’t the all important decision making factor – as long as the buyer could flip the property and make a profit, then it didn’t matter how far out from the city centre it is or the level of quality the property was offered. However, when the financial crisis hit Dubai, investors were stuck with properties that were too hard to sell as their prices had dropped significantly.

Since 2008 however, Dubai has seen a huge increase in location-driven investments.

In April, a joint study conducted by the Roads and Transport Authority's Strategic Planning Department and Dubai Real Estate Regulatory Agency found there was high demand for properties closer to the Metro stations which has resulted in their prices soaring by between seven and 34 per cent.

The study had monitored the changes in rates of these lands and commercial properties in 2011 compared to the rates prevailing in 2009 before the opening of the Metro.
Cluttons, an international real estate consultancy, in September said proximity to Metro stations in Dubai is now a factor affecting prices with the majority of areas close maintaining demand and increase both capital and rental values.

US-based Citibank has revealed previously that recovery of Dubai’s real estate sector has been in line with the wider economic upturn and strong economic fundamentals of the emirate.

“Dubai’s economic rebound and improved investor sentiment had breathed life into the real estate market in recent months with the volume and value of real estate transactions carried out in the emirate mushrooming since the beginning of the year,” the bank has said.

International property consultants too have reported villa prices rising by almost 20 per cent year-on-year, while apartment price appreciation have been a tad slow at seven per cent year-on-year.

The World Islands Project – Eroding? True or false?

The World Islands Project – Eroding? True or false?

An ongoing and live project, The World is nine kilometres wide and seven kilometres long. It covers an area of 931 hectares and will add 232km to Dubai’s natural 67km of beachfront and the islands range from 150,000 to 450,000 square feet in size. All of the individual islands have been reclaimed and to date 145 islands have been sold – but are these eroding as we speak?

Nakheel official testifies that no island requires maintenance work to maintain reclamation effect.
They state that no erosion has taken place on The World islands and none of the islands require any maintenance work necessary to maintain the effect of reclamation. Summarising the recordings of their site visit to The World islands on May 21, 2012, in The World vs. Penguin Marine Boat Services case, the tribunal said: “We were told that there have been no substantial problems with erosion of the reclaimed islands or with the silting of the separating channels and that remedial works would be carried out if they were to become necessary.”

Christopher Goshow, a licensed professional coastal engineer from the state of Florida, USA, who has extensive experience of waterfront developments projects in the Middle East, including many islands in The World, was present during the site visit and also gave evidence, which wasn’t challenged at all.

Ali bin Thalith, Director, Nakheel Marinas at Nakheel, also told the tribunal that: “To the best of his knowledge, no maintenance work necessary to maintain the effect of reclamation is, or has been required on any of the islands. If it is required The World would seek to carry it out.”

Ali Mansour, Director Projects, Marine and Civil Works, in a detailed presentation, said that there would certainly be “slight” erosion of the beaches due to tidal waves but the islands were well protected from waves and currents by an oval frame or breakwater.

The breakwater, which is segmented into six portions, has a total perimeter of 26 kilometres, which significantly reduces any impact from waves or current.

The breakwater was completed in December 2007 and 30 million tonnes of rock were used to construct it.

“When you have waves, you have erosion. You have currents, you have some erosion. But when you don’t have both and just tidal movement, you have minimum or controlled erosion which can be compensated at a later stage with the reshaping of the islands,” he said.

New Law to Protect Buyers in 2013

New Law to Protect Buyers in 2013

Dubai said on Tuesday that the world's first governance charter for real estate developers - aimed at improving transparency in the sector - would be implemented by January 2013.  The charter will call on developers to disclose details regarding their activities, progress of their projects, financial solvency and ability to manage quality and risk. It also aims to attract foreign investments, raise the level of confidence and enhance the efficiency of real estate companies, DLD said in a statement.

Dubai’s new real estate investor protection law is also going to be released during the first quarter of 2013, the Dubai Land Department has confirmed. A draft was published in June and after a consultation process the final law is now being drawn up. The law will pave the way for property investors to get a complete refund if a developer fails to complete or handover a property within the stipulated timeframe, or if the developer deliberately defrauds, or alters the specifications of the unit without obtaining the necessary permits.

“Developing and strengthening corporate governance practices is a prerequisite for protecting property rights, attracting and ensuring the loyalty of investors, developers, brokers, lawyers and managers of property owners' association in addition to residents, consultants and stakeholders from other entities. This will surely boost confidence in Dubai's real estate sector.” Marwan bin Ghalita, CEO of Dubai's real estate regulator RERA.

Investors will also be able to claim compensation in cases of breach of any warranty or undertaking contained in the sale contract by a broker or for misrepresentation by a developer or broker.

Meanwhile, new figures from the emirate’s Real Estate Regulatory Agency (RERA), the regulatory arm of the Dubai Land Department, show that there are now 3,094 real estate brokers registered in Dubai.

In terms of nationalities, UAE nationals dominated this profession with 620 brokers, while Indians ranked second with 438 brokers, whilst Pakistanis came third with 428 brokers. British came fourth with 304 brokers, followed by Egyptians with 160 brokers. At the bottom of the top 10 list came the Filipinos with 59 brokers.

Yousef Al Hashmi, director of RERA’s real estate licensing department, said it is now no longer possible for companies to undertake brokerage activities without registration so end users and investors are protected when purchasing property in the Emirate.