Dubai Real Estate Blog

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

7,205 ready apartments changed hands in the January to July period across Dubai Demand remains sluggish for off-plan property in Dubai. The emirate registered off-plan sales worth Dh14.06 billion in the first seven months of 2018, a 30 per cent decline from Dh20.02 billion in the same period last year, according to data by GCP-Reidin. Around 10,759 off-plan units were sold in Dubai for the first seven months, a 25 per cent decline from last year's 14,330 deals during the same period. Approximately 1,224 off-plan units were sold in the month of July alone. May was the first time this year that monthly off-plan sales topped the 2,000 unit mark. In comparison, that mark was crossed four times in the first seven months of 2017. This can be attributed to how demand has tapered for off-plan launches, with developers exhausting all the incentives at their disposal to prop up sales. Jumeirah Village Circle (JVC) accounted for the highest number of off-plan sales, accoun

Under-funded developers struggle to meet handover deadlines. The Dubai Land Department's (DLD) recent decision to seize the properties and plots of land registered in the name of Schon Properties and its funds deposited in an escrow account reflects how the regulator is going an extra mile to safeguard the rights of investors and buyers. "The step is aimed at protecting the rights of investors in light of Schon Properties' actions of exploiting investors by refraining from depositing their money in escrow [guarantee] account," the DLD said. The escrow law was meant to ensure that developers deliver prescribed percentages of construction before drawing down on these funds. Market stakeholders insist how smaller developers will find it increasingly tough to get finance, thereby resulting in a wave of consolidation in the near future. They also forecast that the gap between actual supply and anticipated supply will get bigger as smaller, under-funde

Dubai Creek Harbour has unveiled the Creek Marina in the heart of Creek Island Dubai, the residential and leisure district of the six square kilometre mega-development. The waterfront destination will be home to residences, parkland, restaurants, cafes and entertainment venues. A boulevard encircles the Creek Island Dubai. Several construction milestones have been achieved on the various residential developments in Dubai Creek Harbour.  Creek Marina is set to open in December this year, even as preparations are ongoing to welcome the first residents in Dubai Creek Harbour in early 2019. Creek Marina is also adjacent to the Ras Al Khor Wildlife Sanctuary. The Dubai Creek Tower and Dubai Square, opening doors to post-modern concepts in retail and leisure, are both next door. Nearly three-fourth of a kilometre long and about a quarter wide, the Creek Marina is billed to be the new Riviera of the Middle East. With its oyster design, a throwback to the city's pearling history,