[Business Bay] Daily News Update for Dubai RE Market
*House prices on Palm Jumeirah sink to three year low* *Arabian Business* )Sale prices on Dubai’s Palm Jumeirah have fallen to their lowest level in over three years, with a three bedroom apartment on the prestigious Shoreline changing hands for just AED1.55million ($422,000). Arabian Business understands the property is one of a number of new distress sales that have come onto the market in the past six weeks – effectively pushing down the lowest selling price to just AED704 ($191) per square foot. This compares to a peak of over AED2300 ($626) in 2007. Since the start of the property crash in late 2008, prices have now fallen by nearly 70 percent in some parts of the Palm, though across the development the average drop is believed to be closer to 40 percent. In May this year the Arabian Business Think Tank forecast that prices on the Palm Jumeirah will plummet another 20 percent in the next year. It predicted that average prices for an apartment on Nakheel's man-made island will fall to just AED1,022 per square foot by May 2011. http://www.arabianbusiness.com/594695-house-prices-on-palm-jumeirah-sink-to-three-year-low *International City units selling below launch price* Emirates Business 24/7 Price of apartments in International City are at their lowest as property owners are selling at prices below the launch price. While studios were sold for Dh220,000 and one-beds for Dh320,000 at the time of launch, property owners are now offering the units at a discount ranging from 10 to 15 per cent, according to data analysed by Emirates 24|7. The current asking price for studios is between Dh190,000 and Dh210,000, while one beds are available for Dh290,000 to Dh310,000. As for the furnished apartments, owners seek an additional Dh15,000 to Dh20,000. In 2008, the average sale price touched a high of Dh870 per square feet, declining to Dh600 per sq ft in 2009 and now hovering at Dh400 per sq ft this year. http://www.emirates247.com/property/real-estate/international-city-units-selling-below-launch-price-2010-08-12-1.278035 *Damac promises to deliver 3,900 units by Q1* *Emirates Business 24/7* Damac Properties expects to hand over seven projects totaling 3,900 units of residential, retail and commercial space in Dubai by the first quarter of 2011, General Manager Ziad El Chaar said. "The focus now is not on launching new projects. We have to consolidate what we started," Chaar said. Its main developments are at home in the UAE and Egypt. Damac is building 12,500 units across its markets in the Gulf Arab region, Egypt and Lebanon, most set to be handed over by early 2013. It also has projects in Qatar and Saudi Arabia. http://www.emirates247.com/property/real-estate/damac-promises-to-deliver-3-900-units-by-q1-2010-08-11-1.277760 *Capital attracts office renters from Dubai as companies shift focus* *The National* Abu Dhabi landlords are starting to benefit from a migration of corporate occupiers from Dubai, leasing agents say. As prices in Abu Dhabi decline and new high-end commercial space comes online, these companies see an opportunity to increase their presence in an economy fuelled by oil exports. “We are starting to see evidence of multinational companies who have had up until now a larger presence in Dubai as compared to Abu Dhabi, shift their focus,” said Piers Barttelot, a leasing director at the property consultancy Jones Lang LaSalle. “They are now looking into the feasibility of downsizing in Dubai and upsizing in Abu Dhabi.” The changes are the reverse of the country’s residential market, which has in the past 18 months seen more people with jobs in Abu Dhabi moving to Dubai’s more developed projects such as Downtown Burj Khalifa and Jumeirah Beach Residence. Another 1.2 million square metres of office space is expected to be delivered in Abu Dhabi by the end of 2012, half of which will be in the large master-planned areas such as Al Reem Island, Al Raha Beach and Sowwah Island. http://thenational.ae/apps/pbcs.dll/article?AID=/20100810/BUSINESS/708109892/1051 [image: cid:3356737934_672033] DPRE Real Estate Brokers LLC Ayham Jbara Property consultant Office 1102, Al Moosa Tower 2 Sheikh Zayed Road Dubai PO Box 123704 United Arab Emirates +971 505910570 mobile +971 4331 6618 phone +971 4331 6619 fax ay...@dpreholdings.com www.dpreholdings.com Confidentiality: This communication contains information which is confidential and may also be privileged. It is for the exclusive use of the addressee. If you are not the addressee please note that any distribution, dissemination, copying or use of this communication or the information in it is prohibited and if you have received this communication in error, please notify us immediately by telephone, facsimile or email and thereafter destroy this message. Thank you. We have taken steps to ensure that this message (and any attachments or hyperlinks contained within it) are free from comp
[Business Bay] Daily News Update for Dubai RE Market
*Dubai Silicon Oasis records 131% growth* *Gulf News* An increase in new investments and sale and lease of properties pushed the revenues and profits of Dubai Silicon Oasis to a record high during the first half of the year, its results show. Dubai Silicon Oasis (DSO), Dubai's answer to America's Silicon Valley, Saturday said it earned a 148 per cent increase in revenue for the first half of this year compared with the same period last year. The high-tech park recorded a 131 per cent growth in profits in the same period. http://gulfnews.com/business/property/dubai-silicon-oasis-records-131-growth-1.665047 *Guaranteed rentals, freebies for property buyers* *Emirates Business 24/7 * In a bid to attract property buyers, developers have started to offer “guaranteed” rentals to multiple unit buyers and even free maintenance for their properties, Emirates 24|7 can reveal. Dubai-based Vakson Real Estate is offering investors eight per cent guaranteed gross rent for two years if they buy three or more apartments in its University View Apartments in Dubai Silicon Oasis. While in Ras Al Khaimah, Al Hamra Real Estate is offering free furniture to one-year free maintenance to property buyers along with developer finance. For those opting to rent, units are being offered with three months’ free rental with free electricity for three months. Experts believe that property buyers are no longer interested in the sales gimmicks of companies, but are very cautious when making a decision. It is the quality, location and reputation of the developer that concerns them than freebies. http://www.emirates247.com/property/real-estate/guaranteed-rentals-freebies-for-property-buyers-2010-08-07-1.275801 * * *RAK Properties posts Dh96.24m net profit* *Gulf News* Ras Al Khaimah Properties, or RAK Properties, posted a 33 per cent decline in second-quarter net profit to Dh96.24 million from the year ago period. The developer made a net profit of Dh143.31 million in the second quarter of last year. http://gulfnews.com/business/property/uae/rak-properties-posts-dh96-24m-net-profit-1.664588 [image: cid:3356737934_672033] DPRE Real Estate Brokers LLC Ayham Jbara Property Consultant Office 1102, Al Moosa Tower 2 Sheikh Zayed Road Dubai PO Box 123704 United Arab Emirates +971 505910570 mobile +971 4331 6618 phone +971 4331 6619 fax ay...@dpreholdings.com www.dpreholdings.com Confidentiality: This communication contains information which is confidential and may also be privileged. It is for the exclusive use of the addressee. If you are not the addressee please note that any distribution, dissemination, copying or use of this communication or the information in it is prohibited and if you have received this communication in error, please notify us immediately by telephone, facsimile or email and thereafter destroy this message. Thank you. We have taken steps to ensure that this message (and any attachments or hyperlinks contained within it) are free from computer viruses and the like. However, in accordance with good computing practice, the recipient is responsible for ensuring that it is actually virus free before opening it. -- Fantastic real estate opportunities, all in one group: "Dubai Business Bay Properties" Share it with your friends and colleagues. Free to join. Just send your request to us. Visit our group at: http://groups.google.com/group/businessbay-properties?hl=en - Healthy Living with: http://healthybaba.com <> No virus found in this incoming message. Checked by AVG - www.avg.com Version: 9.0.851 / Virus Database: 271.1.1/3057 - Release Date: 08/07/10 22:12:00
[Business Bay] Daily News Update for Dubai RE Market
*Dubai rents continue to ease* *Gulf News* Home and office rents continued to soften in the second quarter of this year in both Dubai and Abu Dhabi, new research showed Wednesday. Areas such as Barsha, Bur Dubai, Shaikh Zayed Road, Marina, Greens and Jumeirah Lakes Towers (JLT) saw rents drop as new supply came into the market. The highest drop in the freehold category has been in JLT and the Greens which saw lease rates easing by 40 and 36 per cent, respectively. Among non-freehold locations, Barsha witnessed the biggest drop in lease rates with a decline for 44 per cent from the market peak. The decline in occupancy and lease rates has meant landlords are seeking more security in their lease agreements to stop tenants from terminating their contracts prematurely in favour of lower rents. Falling rentals have also resulted in a continuing shift of tenants into Dubai from the northern emirates says Craig Plumb, MENA Head of Research for Jones Lang LaSalle. A large number of new residential units is still expected to be handed over during the last two quarters of this year with rents likely to fall further. Average rentals and sale prices in Abu Dhabi also continue to decline. •40% rent easing in Jumeirah Lakes Towers •36% rent easing in The Greens http://gulfnews.com/business/property/dubai-rents-continue-to-ease-1.660600 * * *Abu Dhabi office vacancy touches 8%* *Emirates Business 24/7* Office rents in Abu Dhabi fell 12 per cent in the second quarter compared to the first quarter of 2010, with fresh supplies ratcheting vacancy rates to eight per cent, Jones Lang LaSalle (JLL) said on Wednesday. In the second quarter market review, JLL said that vacancies are likely to increase further as more supply enters market. Year-on-year office rents fell 27 per cent with average Grade A rent standing at Dh2,200 per square metre compared to Dh3,800 per square metre in the fourth quarter of 2008. Grade B rentals dropped more rapidly with average rentals below Dh1,700 per square metre. http://www.emirates247.com/property/rentals/abu-dhabi-office-vacancy-touches-8-2010-07-28-1.272153 *Frustrated property investors using blogs to vent their anger* *Emirates Business 24/7* Investors in the UAE’s real estate are a frustrated lot, but not just because the sector is in the throes of the worst-ever slowdown it has witnessed. That’s a known fact, and most investors have reconciled to it. However, what is not known and, therefore, much more frustrating, is the status of the projects in which they have invested their hard-fought cash. Many developers in the country have apparently chosen to not communicate with their clients about when the stalled projects are going to take off and when will they be delivered, if at all. A good proportion of such investors do not reside in the country and, therefore, have to depend on communication from the developer and their websites to figure out the status of their investments. With the websites of most developers updated on a regular basis, and not communication forthcoming from them, such investors are resorting to blogs such as www.skyscrapercity.com http://www.skyscrapercity.com to voice their anger. http://www.emirates247.com/property/real-estate/frustrated-property-investors-using-blogs-to-vent-their-anger-2010-07-28-1.271874 *One-bedroom apartment rents fall 37%* *Emirates Business 24/7* Rents for one-bedroom apartments fell by 37 per cent in the second quarter of 2010 compared to the second quarter of 2009, CB Richard Ellis (CBRE) said yesterday. The lowest drop was seen in the three-bedroom category, which fell 29 per cent. The two significant factors that led to the decline are a significant supply in the smaller unit types and overall improvement in affordability, which has allowed tenants to opt for larger units at a lower price. The highest drop in the freehold category has been within the Jumeirah Lakes Towers and the Greens development, which has seen lease rates dipping by 40 per cent and 36 per cent, respectively. http://www.emirates247.com/2.277/real-estate/one-bedroom-apartment-rents-fall-37-2010-07-28-1.272112 [image: cid:3356737934_672033] DPRE Real Estate Brokers LLC Ayham Jbara Property consultant Office 1102, Al Moosa Tower 2 Sheikh Zayed Road Dubai PO Box 123704 United Arab Emirates +971 505910570 mobile +971 4331 6618 phone +971 4331 6619 fax ay...@dpreholdings.com www.dpreholdings.com Confidentiality: This communication contains information which is confidential and may also be privileged. It is for the exclusive use of the addressee. If you are not the addressee please note that any distribution, dissemination, copying or use of this communication or the information in it is prohibited and if you have received this communication in error, please notify us immediately by telephone, facsimile or email and thereafter destroy this message. Thank you. We have taken steps to ensure that thi
[Business Bay] Daily News Update For Dubai RE Market
*All units must be registered with Land Department* The Dubai Cassation Court's new rule states that signing a contract is not enough to prove ownership of a property *Emirates Business 24/7* The Dubai Cassation Court has introduced a new legal ruling necessitating the registration of the property purchase contract with the Lands and Property Department as means of proving property ownership. The ruling was issued in line with the terms of Law No. 13 of 2008. The ruling sates that signing a contract is not enough to prove ownership of a property. The contract must be registered with the relevant department to be considered a valid document before the court. The same ruling says that off-plan units should not be registered in the final property register, but rather in the initial register. http://www.emirates247.com/property/real-estate/all-units-must-be-registered-with-land-department-2010-07-25-1.270438 * * *Rents in Dubai likely to fall further* Summer a good time to bargain for cheaper rents as oversupply likely to drive prices further down *Emirates Business 24/7* Rentals in Dubai are likely to fall further during the summer months, with prospective tenants getting the upper hand and being able to bargain much better with landlords, according to realty experts. “We expect rents for larger units such as two- and three-bedroom apartments to fall quicker than those for one-bedroom and studios,” Youcef Betraoui, Managing Director, Land Sterling - Mena, told Emirates 24/7. “The employment market in Dubai is still under ‘frustration’ and with the increase in school fees, families are looking for alternative ways to manage their finances by going back home or migrating to other countries,” he added. “The market has witnessed an average rental decrease of 20 to 25 per cent in the past one year and we assume this figure will increase. During summer we will also observe the holy month of Ramadan during which the working hours are relaxed and there is usually less activity in the real estate market,” he added. However, Better Homes says transactions do go up during the summer months. “Historically we've witnessed an increase in residential leasing transactions over the summer months, because new families tend to arrive before the summer holidays end in order to settle in,” http://www.emirates247.com/property/rentals/rents-in-dubai-likely-to-fall-further-2010-07-26-1.270925 * * *UAE's Ras Al Khaimah eyes FTZ expansion* *Arabian Business * The UAE emirate of Ras Al Khaimah, lacking the oil and gas of its neighbours, is planning projects worth $5 billion to 2020 with the help of foreign investors, officials said on Sunday. Its Free Trade Zone (RAK FTZ), home to around 4,000 companies, is trying to turn itself into a business hub for small and medium enterprises and lure more multinational investors for its infrastructure and airport expansion plans. Oussama el Omari, CEO, RAK FTZ, said: "We forecast 2,250 additional companies in 2010. In 2009, registrations and company revenue in the zone grew 10 and 11 percent respectively despite the global crisis, he added. Most new companies would come from Germany, France, Turkey, and India. While speaking to Reuters, Omari said: "Some of the largest investments are from Knauf group from Germany, Dole Group from the 'States, and Hyundai Group," without giving details. http://www.arabianbusiness.com/593432-uaes-ras-al-khaimah-eyes-free-trade-zone-expansion *Dubai's industrial rents down nearly 17% in Q2* *Arabian Business * Industrial rents in Dubai fell by more than 16 percent in Q2, according to CB Richard Ellis.Dubai industrial rental rates dropped by and average of 16.67 percent in the second quarter of the year and the emirate experienced the biggest drop in rates in Europe, the Middle East and Africa, according to the latest quarterly report by consultants CB Richard Ellis (CBRE). In terms of yields, Dubai also saw the biggest drop, falling one percent to twelve percent in the second quarter. This was the biggest drop in the report, with other cities seeing an average drop in yields of just 0.07 percent in the same period. The study found that while Dubai industrial yields have dropped two percent since the peak days of the boom, they are still some of the highest on the list, with only Kyiv (sixteen percent), Moscow (fourteen percent) and Serbia (thirteen) giving better returns. http://www.arabianbusiness.com/593438-dubais-industrial-rents-down-nearly-17-in-q2 *UAE in world’s top 10 for consumer confidence* *Emirates Business 24/7 * The UAE’s consumer confidence index has shown a slight drop of two points, bringing the index from 103 points in the first quarter of 2010 to 101 in the second quarter. However, the UAE still maintains last quarter’s inclusion amongst the top 10 most optimistic nations according to the latest edition of the Nielsen Global Consumer Confidence Index. Niels
