Dubai residential property market showing signs of recovery | Gulf Business

Ayham JbaraEnglish News

Residential real estate prices in Dubai may have started bottoming out in certain areas, a new report has found.

The monthly ValuStrat price index for Dubai’s residential market found that – on average – there were minute indications of an early recovery in some areas in February.

Compared to a 100 point base in January 2014, the February 2016 index registered 98 points, with no significant change in values when compared to the previous five months.

The villa market registered 96.8 points in February, down 0.1 per cent when compared to January and the apartment market stood at 98.7 points, up 0.1 per cent when compared to the previous four months.

“This marks a continuation of evidence of price stabilisation,” a statement said.

Dubai’s property market has seen a slowdown in the last two years following a sharp rise in prices and increasing supply in the market.

Average sales prices for apartments and villas fell between 11 to 13 per cent between 2014 and 2015 while rents dropped 3-4 per cent, according to data from JLL and REIDIN.

The number of residential units sold also declined by around 30 per cent by the end of November 2015 compared to the same period in 2014, statistics from Dubai Land Department showed.

Experts have warned that Dubai’s property market will face a “challenging” year in 2016 although recovery is expected by 2017.

“Although 2016 could be challenging in the short term, with effective regulations in place and the infrastructure investment that is committed as part of Expo 2020, we should see an upturn in the real estate industry in 2017,” partner and head of Building, Construction and Real Estate with KPMG Lower Gulf Sidharth Mehta said in a recent report.

“While oil prices remain well below the long term average, which is clearly having an effect on market confidence, Dubai’s improved regulatory environment, broader investor profile, and increased maturity are all indicators that its real estate market should eventually self-correct,” he added.

Source: Dubai residential property market showing signs of recovery | Gulf Business

Picking up distressed realty assets on the cheap | GulfNews.com

Ayham JbaraEnglish News

سوق العقارات

Dubai: It’s good to buy even in a market that is down. Developer-investors are again seeking out opportunities to pick up distressed or shelved projects in Dubai while market conditions are still soft and the current owners want to cash out at any cost.

The Select Group — which has nine high-rises of its own in Dubai Marina, both complete and under construction — is all set to pick up another land parcel — albeit from another developer — in the cluster. “We are in the final stages of acquiring ownership, which will be for a G+29 residential building that will be announced in Q3-2016,” said Rahail Islam, Group CEO at Select. “Since it was a distressed project, the buying out process involves Rera (Real Estate Regulatory Agency), Dubai Land Department, the Liquidation Committee and Dubai Courts.

“The property market has been in a soft cycle since Q3-14, and there’s no reason why cannot use these circumstances to negotiate better terms.

“A similar set of circumstances were also there in 2010-12 when no one in Dubai was building or selling property.”

Islam did not reveal how much Select was paying for the plot. But the developer has already initiated the design work for the new project. Select also has the three-tower Marina Gate under development at Dubai Marina. (Another tower in the Select portfolio is the Torch, which was hit by a fire in February last year.)

There is talk in the market about other cash-rich investors coming together to pick up projects or properties caught in a similar distress. Much depends on the extent of the seller’s desire to make an exit at a time when everything seems loaded in the buyer’s favour. Moreover, the seller’s choices may be limited with master-developers insistent that plot owners should start on their projects within a stipulated time or risk facing penalties.

“Right now, there are fewer buyers around and more of the sellers — from a buyer’s perspective a down market is the time to buy,” said Islam. “All of the inflated costs will be removed from the transaction.

“For the latest Dubai Marina project, we can also get better commercial terms from the contractors because so many of them have excess capacity they need to utilise. It’s a great time to design, develop and deliver on projects by the time the market’s cycle heads back into positive territory in the next 12-18 months.”

Select, meanwhile, hopes to keep itself busy with other launches. A mid-market offering is high on its priority list. But Islam is quite certain about what sort of pricing these properties should have.

“I don’ think mid-market in Dubai is about Dh700 a square foot and lower … my reckoning is more in the Dh900-Dh1,400 range to make it worth the while of a developer,” he said. “But there are many ways that such a property can be made accessible to a buyer in the mid-market space. The Dubai realty market is underserved in mid-income products.

“This creates dynamic opportunities for developers — it’s a question of finding the right location. It will be silly for us not to get into space.

“We have more or less decided on where it should be — it will be where the infrastructure is ready. This way there is no master-developer specific risk involved from not having an infrastructure.

Source: Picking up distressed realty assets on the cheap | GulfNews.com

House rental brackets in Dubai | GulfNews.com

Ayham JbaraEnglish News

The Real Estate Regulatory Agency has the last word when it comes to regulating rents in the city. We have listed out rents that are in line with what Rera specifies. We only list out the rent brackets in this article, but if you are looking to check whether you qualify for a rent increase, it is best to use Rera’s rental increase calculator.

Check our Dubai Area Guides map below to find your residential area for calculating rental increase.

1. Al Garhoud


763679321


Studio – Dh40,000 to Dh50,000
One bedroom – Dh55,000 to Dh65,000
Two bedrooms – Dh85,000 to Dh90,000

 

2. Dubai Investment Park

Studio – Dh25,000 to Dh35,000
One bedroom – Dh40,000 to Dh50,000
Two bedrooms – Dh60,000 to Dh75,000

3. Al Qusais


3253494415


Studio – Dh35,000 to Dh45,000
One bedroom – Dh50,000 to Dh60,000
Two bedrooms – Dh65,000 to Dh80,000

4. Dubai Silicon Oasis

Studio – Dh35,000 to Dh45,000
One bedroom – Dh50,000 to Dh70,000
Two bedrooms – Dh70,000 to Dh85,000

5. International Media Production Zone (IMPZ)

Studio – Dh30,000 to Dh45,000
One bedroom – Dh50,000 to Dh55,000
Two bedrooms – Dh65,000 to Dh80,000

6. Discovery Gardens


1988913573


Studio – Dh45,000 to Dh55,000
One bedroom – Dh60,000 to Dh75,000
Two bedrooms – Dh70,000 to Dh80,000

7. Jumeirah Lake Towers

Studio – Dh55,000 to 75,000
One bedroom – Dh75,000 to Dh95,000
Two bedrooms – Dh110,000 to Dh135,000

8. Dubai International City


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Studio – Dh27,000 to Dh38,000
One bedroom – Dh38,000 to Dh45,000
Two bedrooms – Dh45,000 to Dh60,000

9. Jumeirah Village

Studio – Dh40,000 to Dh50,000
One bedroom – Dh55,000 to Dh70,000
Two bedrooms – Dh80,000 to Dh100,000

10. Satwa

Studio – Dh35,000 to Dh40,000
One bedroom – Dh45,000 to Dh65,000
Two bedrooms – Dh65,000 to Dh75,000

Source: House rental brackets in Dubai | GulfNews.com

Will Dubai Become World’s Most Innovative City By 2021? | The Economic Voice

Ayham JbaraEnglish News

Harbour Views

There seems to be no end to Dubai’s insatiable appetite for innovation. This might be one reason why the emirate has been able to fearlessly bank on its ability to implement experimental development ideas with unwavering confidence. Once again, the emirate is striving towards becoming the world’s most innovative city by 2021, in line with the United Arab Emirates (UAE) government’s Vision 2021.

So what has the UAE government, especially Dubai, done so far in respect to achieving this goal? Herein lies the good news. Recently, the Ruler of Dubai and UAE Prime Minister HE Sheikh Mohammad Bin Rashid Al Maktoum launched a mega fund worth AED 2 billion ($544 million) to help innovators and entrepreneurs fund their business ideas.In addition, the emirate is also taking steps to become the ‘smartest’ city in the world by incorporating internet technology into different sectors.

To achieve these targets, the UAE government declared 2015 as “Year of Innovation” with the announcement of a national innovation strategy to make Dubai the world’s most innovative city in the next seven years. The realization of this dream hinges on the working of Dubai Innovation Index (DII) and the $544 million Shaikh Mohammad Bin Rashid Al Maktoum Fund to Finance Innovation.

Dubai 7

A recent report launched by Dubai Innovation Index (DII) and published by Dubai Chamber of Commerce and Industry ranked London as the most innovative city in the world, ahead of Hong Kong and Singapore. The same report ranked Dubai 16th among a list of 28 global cities, but the good news is that Dubai already beat Beijing, Shangai, Madrid, Sao Paulo, Milan and Mumbai in its quest for becoming the smartest city in the world.

The DII’s primary role in this respect is to promote innovation, spread awareness regarding the UAE government’s initiative and to increase private sector participation in helping the emirate meet its 2021 targets.

Talking about the reasons behind DII’s launch, Dubai Chamber of Commerce and Industry President and CEO Hamad Buamim said the index was launched keeping transparency in mind.

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According to the latest DII report, Dubai is doing fairly well in the fields of output and performance, but lags behind in the realms of intellectual property and collaboration with economic institutions to undertake scientific work. To overcome these weaknesses, the emirate needs to tap into its private sector to help it move at a steady pace towards technological progress.

Meanwhile, the Shaikh Mohammad Bin Rashid Al Maktoum Fund to Finance Innovation is another important part of UAE Vision 2021. The fund will provide financial support to innovators and help them transform their ideas into full-fledged businesses.

The fund will dole out money through commercial banks and financial institutions in line with set standards. Innovators looking for government funding should also be aware of the fact that only locally registered companies will receive financial help to build upon a saleable idea.

Per requirements of the UAE government, those ideas that are related to renewable energy, transport, education, health, technology, water and space field will be given preference.

Besides, Dubai is also covering major ground to become a ‘smart’ city by the time Expo 2020 kicks off. The Smart City initiative will work to improve the emirate’s communications infrastructure in the hope of becoming a sustainable city by upgrading transport facilities, communications, infrastructure, electricity, economic services and urban planning. This will result in at least 1,000 government services being linked to the grid.

The UAE government has already taken the first step in this direction by upgrading official websites and introduced new apps that will make connectivity as easy as pie.

These reforms will help other sectors of the economy grow as well, including the real estate industry. The emirate’s real estate market has a lot to offer to investors and digitalizing this sector will make it accessible to a bigger network of potential investors. For instance, UAE’s smartest property portal Bayut.com has been an active member of digitalized property market and has carved a respectable name for itself by utilizing technology.

So far, Dubai government’s initiative to digitalize governance has made a positive impact on police, municipality, healthcare, transportation, urban living and communications sectors. By the look of things, it is quite possible for Dubai to become a truly modern city by 2021, one that takes every step forward ‘smartly

Source: Will Dubai Become World’s Most Innovative City By 2021? | The Economic Voice