Dubai Real Estate Blog

Developers offering units across the whole spectrum in their projects The soft market conditions in Dubai aren't deterring developers from launching blue-ribbon projects. The 17th edition of Cityscape Global 2018, which concluded on Thursday, has seen some big launches - the Madinat Jumeirah Living by Dubai Holding, Marsa Meydan by the Meydan Group and 'Riviera of the Emirates' project by Abu Dhabi-based Imkan Properties. However, developers are weaving in an element of affordability in these luxury projects by adding more apartments to the mix. "Developers are offering units across the whole spectrum in their projects. It's not just about the three-bed penthouses any more. A luxury developer like the Select Group has a majority of studios and one-bedroom apartments in their Dubai Marina project," says Matt Gregory, head of sales for property at dubizzle. According to market sources, a one-bedroom apartment at Madinat Jumeirah Living is price

Organised, structured payment plans will be winning factor in stimulating investors to buy Dubai has been built by bringing to light the fantastic vision of the developers that dared to dream big. Real estate, often seen as the scale on which the city's overall economic soundness is judged, continues to be going strong and gathering stability by attracting foreign investment worth billions and diversifying its offering from luxury to upscale and affordable properties, aimed at the growing mid-segment population. Despite a recent softening, real estate continues to be a preferred asset class among investors and the attractive payment plans and innovative offers from developers have gone a long way in securing buyer interest. Affordable housing Major developers are now providing a variety of cheaper, alternative homes suitable for a whole range of buyers. Nshama is offering apartments starting from Dh443,000, Azizi from Dh390,000 and Danube from as low as Dh320,000.

Trakheesi allows customers to obtain a range of permits to assist with their transactions The Dubai Land Department (DLD), through the Real Estate Regulatory Agency (Rera), has announced the issuance of nearly 500,000 real estate permits for real estate companies through the 'Trakheesi' system. Ali Abdulla Al Ali, director of real estate licensing department at Rera, said: "Achieving this number reflects the overwhelming approval of Trakheesi and the services it provides to customers in an easy, efficient and professional manner. It allows customers to obtain a range of permits to assist with their transactions in the highest degree of transparency and in harmony with the regulations and legislations in this sector." The electronic service systems in Trakheesi are easy to use, allowing for the immediate issuance of all types of permits at any time and without the need to go through Rera. Customers may obtain 15 types of approved real estate permits, includ

There has been a steady reallocation of funds towards ready properties so far this year With smaller developers exhausting post-handover payment plans and aggressive pricing for under-construction units, the off-plan market remains sluggish. Meanwhile, the larger developers are offering attractive incentives for ready properties. This has resulted in a steady reallocation of funds towards ready properties so far this year. Sports City is the sole apartment cluster to record a net gain in ready property sales during the first eight months of 2018 compared with a year ago - 610 ready units were sold, more than the 525 recorded same period last year. Discovery Gardens and Motor City saw a significant decrease in the number of ready units sold from January to August this year, according to data from GCP-Reidin. "Dubai Sports City is a desirable mid-income community that has been seeing consistent green shoots of recovery this year. High-end ready properties in Dubai Marina

It's been a summer of mixed messages for UAE real estate market observers. News dropped at the start of July that Dubai's sector slowed in the first half of the year with the value of deals done falling 16 per cent year on year, according to reports from the Dubai Land Department. Amid this downbeat market news, the UAE government buoyed spirits, announcing a 10-year UAE expat residency visa for professionals and 100 per cent foreign ownership of businesses outside as well as inside free zones. Prominent UAE real estate developers praised the new rules, saying they would stimulate the nation's owner-occupier market. However, following these consumer-friendly policy reforms, the UAE Central Bank announced a raft of new changes in their Amendment to the Regulations Regarding Banks Loans & Other Services Offered to Individual Customers document on June 19, 2018. Amongst a few modest fee reductions on personal loans was a massive home loan fee increase, the tripling o

The UAE has become the first country in the world to offer online or digital real estate services through a smart services hub, according to authorities.   The Abu Dhabi City Municipality (ADM) said on Sunday that it has collaborated with Abu Dhabi Islamic Bank in issuing the first digital mortgage certificate worldwide, a step that culminates the upsurge in the digitalization of services advocated by theDepartment of Urban Planning and Municipalities in response to the government directives.   It stems from the keenness of the Department to uplift the calibre of government services to rank them at par with the best in the world. It also measures up to clients aspirations and supports the sweeping development witnessed by the UAE at all fronts.   Saif Badr Al Qubaisi, Chairman of the Technology Committee at the Urban Planning and Municipalities Department said: "This giant step of issuing the first digital mortgage certificate in the world is a result of the great support and mo

The levy is expected to increase transparency, considering the rigid audit requirements When value-added tax (VAT) was introduced in the UAE and Saudi Arabia on January 1, 2018, initially stakeholders were wary on the potential impact of the new tax policy on the economy.  A study conducted by Alliance Business Centers Network said that the UAE would be least affected by the imposition of VAT because it is one of the lowest globally compared to countries such as the UK, Switzerland, Germany, Mexico, South Africa and Australia. The study revealed that the VAT in UK and France was 20 per cent, which is substantially higher than the five per cent implemented in the UAE and Saudi Arabia. With the adoption of VAT in the real estate sector, investors and stakeholders are weighing the impact on market valuations. According to Deloitte, in the UAE, commercial property is clustered in the taxable bracket and therefore the costs of buying or leasing such property are likely to

Developers put themselves at risk by not fully assessing the buyer's financial worthiness at the outset The Dubai residential property market is dominated by two areas - secondary and off-plan. The secondary market, fully regulated with mortgage caps in place, reduces the inherent risk in the property market. Strict guidelines imposed by banks decide if the borrower is credit-worthy, protecting both the bank and the borrower (so they don't overextend their credit limits). Therefore, we have a combination of banks and mortgage regulations making for sensible levels of risk, avoiding a situation seen in the global financial crisis of 2008/2009, with so much unstable debt in the market leading to an inevitable slowdown. Now look at the off-plan side of the Dubai real estate market. By not having a regulation in this market, are we allowing the buyer to put themselves in harm's way? Are we laying the foundation of unwanted risk in this side of the market if the

A property management contract takes the stress out of property rental Y ou've probably heard of property management, but do you know what the actual benefits of such an arrangement actually are? There's a multitude of benefits for both parties involved in the contact - both the landlord (property owner) and the tenant. With more savvy tenants than ever before, many actively seek out rental arrangements made only where the landlord has taken out a property management (PM) contract.  Advantages for tenants As a tenant, you want peace of mind, right? A property management company takes away a lot of the niggles, hassles and worries that you might have as a tenant. For instance, prior to moving in, a tenant should receive a professional "schedule of condition" report which helps at the end of tenancy in terms of security deposit return. The property will also be checked over and prepared for the tenant (prior to move in) by a dedicated portfolio man

The company's non-development businesses performed strongly Nakheel has announced a net profit of Dh2.51 billion for the first six months of 2018. The profit for the same period in 2017 was Dh2.61 billion. Nakheel handed over 451 units to customers in the first six months of the year. The company's non-development businesses - retail, leasing, hospitality and asset management - performed strongly. Annual revenues from these sectors is now Dh2.6 billion - three times as much as in 2010 - and currently accounts for 38 per cent of the company's total revenue. Revenue from these sectors will continue to grow with the completion of retail and hospitality projects such as The Pointe, due to open this year, and The Night Market, Warsan Souk, The Palm Tower and Nakheel Mall, which are due to come on line in 2019. In 2017, Nakheel recorded a 14 per cent surge in net profit to Dh5.67 billion and handed over 1,439 land and built-form uni

The company's non-development businesses performed strongly Nakheel has announced a net profit of Dh2.51 billion for the first six months of 2018. The profit for the same period in 2017 was Dh2.61 billion. Nakheel handed over 451 units to customers in the first six months of the year. The company's non-development businesses - retail, leasing, hospitality and asset management - performed strongly. Annual revenues from these sectors is now Dh2.6 billion - three times as much as in 2010 - and currently accounts for 38 per cent of the company's total revenue.  Revenue from these sectors will continue to grow with the completion of retail and hospitality projects such as The Pointe, due to open this year, and The Night Market, Warsan Souk, The Palm Tower and Nakheel Mall, which are due to come on line in 2019. In 2017, Nakheel recorded a 14 per cent surge in net profit to Dh5.67 billion and handed over 1,439 land and built-form units during the year, which r

Oversupply and subdued prices make them delay coming to market with new projects Developers in Dubai have launched 9,034 units, both apartments, villas and townhouses, year to date in 2018, according to data released by GCP-Reidin. This compares to a total of 46,893 units launched across the whole of 2017. The decline in the number of launches is a result of the demand and supply imbalance caused by excessive construction activity in recent years, resulting in oversupply. "In turn, property take-up rates have fallen, leading to a decline in sales prices, translating into lower potential profit margins for developers. As a consequence, some developers are delaying coming to the market," explains Ivana Gazivoda Vucinic, head of consulting and valuations and advisory operations at Chestertons Mena. After last year's frenzy, developers seem to have maxed out on post-handover incentives. Therefore, demand has been sluggish in the off-plan space, with some re-allocati

Kleindienst Group will hand over Floating Seahorse villas and Beach Palaces this year Dubai's luxury second home market is gaining traction as the Kleindienst Group prepares to hand over properties this year. The developer of the Heart of Europe, a cluster of six islands on The World, will hand over 40 Floating Seahorse villas, 10 Beach Palaces on Sweden Island, 32 villas on Germany Island and launch the Portofino Hotel. The promoters refer to the Heart of Europe as Dubai's first purpose-built luxury area for UAE residents to own a holiday property in their own country. Until now, most holiday homes have been lapped up by international buyers. Josef Kleindienst, chairman of Kleindienst Group, said: "There is good demand for luxurious second homes. Dubai needs second homes which are within driving distance or a boat ride away. All we have today are farmhouses, which are not freehold. The Heart of Europe aims to develop Dubai's luxury freehold second home mar

Aurora Real Estate offers attractive payment plan for Hyati Avenue Private sector developers are steadily handing over projects in Dubai. One such boutique developer is Aurora Real Estate which has handed over its development in Jumeirah Village Circle (JVC) and is now gearing up to deliver another project in International City this year.  Only seven units remain to be sold in the Dh168 million Hyati Residence which features 20 townhouses and 122 apartments. More end-users have purchased units in this project, say its promoters. "JVC offers a gross yield of 9.2 per cent, Discovery Gardens 8.9 per cent and International City offers 8.6 per cent. Other global property hubs offer yields less than five per cent," said Cian Farah, CEO of Aurora Real Estate Development. Aurora Real Estate has completed Dh513 million worth of projects, which include Hyati Residence, Ritz Residence and F01.  It has launched construction on Hyati Avenue, which includes 103 apartments and