High Life: Renting in DIFC

The DIFC is the newest International Financial Center in the world. It is hoped that DIFC will attain the same status as New York, London and Hong Kong. The DIFC was opened in September 2004 and has attracted high caliber firms from around the region and the globe.

There are over 175 nationalities working within the DIFC community, diversity reflected in the DIFC lifestyle. There is more to the DIFC than just business. It has high end fashion, fine dining, rich culture and entertainment that will be appreciated by everyone living in and visiting the city.

Renting in DIFC

At present, there are no residential units available in DIFC for rent because most of the development is still under construction. Studios for sale within the DIFC are very pricey so the rental yield will be great.

Liberty House is a development within the development. The studio apartments on offer for sale are very expensive, the most expensive studios in the entire real estate market of Dubai. For example, the advertised price for a studio apartment on the 35th floor at just 826 square feet is a whopping AED 2.5 million. It is difficult to estimate how much a furnished apartment within the DIFC could be rented for. A rough estimate would be between AED 69K - AED 80K.

The DIFC has only a few residential units as it is intended to be a financial center. Many owners find, however, that it is possible to make more money on short-term letting than on long-term basis. In places like DIFC, where the rent is going to be high in comparison to an area like Silicon Oasis which is not far from Dubailand, long-term rental may get you the same amount of money as short-term rental.

Attractions

The project facilities include a beautiful lobby with concierge desk (offering 24 hour security) which leads to an elevated coffee lounge, a business center offering all the amenities of a 5 star hotel. Business services include high speed internet access, fax, photocopying and a round-the-clock manned help desk. There is also a banquet hall and meeting room for private parties, gatherings or business meetings fine dining in the executive restaurant as well as room service from the restaurant's kitchen. The DIFC also includes a health club, gymnasium and tennis court.

List of builders and developers in Dubai

• Emaar Properties
• Al Nakheel Properties
• Damac Properties
• Saba Properties
• Dubai Properties
• Diamond Investments
• ETA Star Properties
• Bonyan Emirates
• Oryx Apartments
• Fbi Property Development Company
• Omniyat Properties
• Union Properties
• Tamer
• Memon Investments
• Ishraqah
• Al Derea Real Estate Development and Investment Company
• The Dubai Multi Commodities Centre Authority (DMCCA)
• Tatweer (a subsidiary of Dubai Holding)
• Dubai Investments Park Development Company
• TECOM Investments
• Dubai Holding

All Information about the UAE Real Estate Market

The rental property andrental real estate market in Dubai, UAE is a rapidly expanding business. Investors can expect almost a 30% or more return on any property. Dubai is one of the few Arabian states open to the West in terms of culture and social integration and secure in terms of political and economic environments. The Dubai property market is growing and anyone who invests in the real estate of Dubai will see a rapid turnover in their investment.

Dubai is especially attractive for people who are thinking of settling outside their home country in Europe, South Africa or South East Asia. The sunny weather, the exchange rate and the completely cosmopolitan nature of the state is something that is found in few other countries.

Dubai is developing into a nation that is the epitome of globalization. Though a middle eastern country it lacks the formality, conventions and traditional flavors found in the Arab region. Dubai, has reinvented itself to suit the needs of all cultures and conventions. It is a commercial region where the real estate, the property and the investments are being created to cater to a universal regime.

Dubai, UAE is creating a real estate and property boom that will tickle the fantasy of most people. It is creating regions within its borders that are representative of the world. Whether you want to buy, sell orrent in the real estate of dubai the return rate is excellent.

The open nature of the society in Dubai makes it a haven for people who want to retire, relocate their families in a more successful manner and/or are simply looking for a secure return on their money. Dubai is a lively place which has people of all religions, is open to various entertainment factions, has excellent education and healthcare facilities and is overall a place where living is dream.

Some of the most popular Dubai rental real estate and property projects include:

• The Walk
• Jumeirah Beach Residence
• Business Bay
• The Executive Towers
• Vision Tower
• Bay Avenue
• The Villa

About Dubai is a site that offers information on the most popular and successful rental real estate and property projects being built and already completed in Dubai. All the projects are described and presented in a manner such that the information is useful to a person interested in settling or investing in Dubai. The Dubai rental real estate and property market is at the peak and the statistics show that there are more foreigners than natives in this cosmopolitan nation.

Dubai Property market investment

More property investors are purchasing Dubai Property than anywhere else in the world where investors can expect almost a 30% or more return on any property. Dubai is one of the few Arabian states open to the West in terms of culture and social integration and secure in terms of political and economic environments. The Dubai property market is growing and anyone who invests in the property in Dubai will see a rapid turnover in their investment.

Property prices have increased year on year since the launch of the freehold properties to overseas investors but despite this there has been no apparent let up in Dubai property sales. Recent studies suggest that the demand for residential and commercial Dubai real estate is likely to continue for the foreseeable future.

Among the popular Dubai property and real estate development include:

• Acacia Avenues
  
• Dubai Marina
  
• Business Bay
• The Palm Islands
  
• The World
  
• Dubailand
  
• Downtown Burj Dubai
• Jumeirah Lake Towers

Demand picking up for Dubai Property

Prices of apartments in master developments such as Dubai Silicon Oasis, International City and Discovery Gardens have stabilised in the past three months, making them "affordable" for middle income earners in the emirate, according to real estate agents.

"The most affordable areas in the emirate are Dubai Silicon Oasis, International City and Discovery Gardens, where prices have levelled off in the past three months," said Vineet Kumar, Head of Sales-Dubai, Asteco Property Management.

According to Gowealthy. com, apartments in affordable housing projects have recorded a marginal drop of about five to 10 per cent in the past quarter. In International City prices for a studio, one-bedroom and two-bedroom apartments were about Dh290,000, Dh475,000 and Dh578,000, respectively, during the first quarter of 2009. The current prices for these properties stand at Dh275,000, Dh450,000 and Dh550,000, respectively, reflecting a decline of roughly five per cent since the past quarter, said Parvees Gafur, Executive Vice-President for International Sales, Gowealthy.com.


Prices stabilising

Mohanad Alwadiya, Director, Harbor Real Estate, said prices in affordable housing are now stabilising but there is an increasing demand.

"In Motor City, the residential apartment prices were about Dh900 a square foot in the second quarter of 2008 and is now about Dh600 per square foot. In International City, the average price per square foot has dropped from Dh830 in the second quarter of 2008 to Dh600 in the second quarter of 2009. In Discovery Gardens prices were Dh1,050 per square foot in the second quarter of 2008 and are now about Dh650 per square foot," he added.

From a rental perspective, Rose-Marie Kilzi, Leasing and Resale Director at Great Properties, said Discovery Gardens, International City and Springs villas continue to offer the cheapest rental rates in Dubai.

"A one-bedroom apartment in Discovery Gardens is currently in the range of Dh55,000 to Dh65,000 per annum. For a two-bedroom villa, the Springs is the cheapest rental property going for Dh100,000 per annum upwards. The rents have stabilised over the past three months," she said.

According to realtors, mortgages are easier to find for affordable housing units with banks generally lending at around 75 to 80 per cent loan-to-value ratio (LTV).

Alwadiya said most banks are offering mortgages on finished properties or those that will be ready within the next 45 days. The LTV ratio is still hovering around 75 per cent on average at an interest rate ranging between nine to 11 per cent, he said.

"Some banks are even offering mortgages on some off-plan projects," he added.

Asteco said mortgage availability on finished properties hovered around 75 to 80 per cent of the assessed value of the property.

"Four banks are very actively providing mortgages including HSBC, Abu Dhabi Commercial Bank, Dubai Islamic Bank and RakBank," said Kumar.

No oversupply risk

Analysts said people with incomes starting from Dh20,000 per month upwards were able to buy affordable housing in Dubai. They all said there was no risk of affordable housing becoming oversupplied in the market due to demand not yet picking up very strongly and the fact that a number of properties are yet to come into the market.

Kumar said: "Affordable housing supply is limited. The market has more projects on going, which are mid-market to luxury. The only affordable projects built so far are International City and Discovery Gardens. What has happened with the correction is that a lot of the finished projects have now become affordable and end users are taking advantage of this correction."

Alwadiya said: "We are witnessing an earlier than expected recovery signs in the market today that will help enhance and boost the demand on property. Affordable projects will benefit first and most during the early recovery stages, which will ease the pressure on the supply of such projects."

Gafur believes supplies are not pouring into the market as expected or predicted earlier last year.

Also, considering existing units and their expected delivery dates, it is still not enough to meet the entire demand for affordable housing from both a sales and rental perspective.

"Current demand levels may seem a bit lean due to various factors such as summer holidays, price drop expectations etc. But the latent demand for affordable housing is still quite strong and it is just a matter of time and initiation of positive factors such as increased lending before the demand levels show a visible upward trend again," he added.

Demand picking up

According to agents, demand for affordable projects is picking up as buyers are continually seeking to take advantage of the low prices.

"Demand on affordable residential assets is exceeding demand on affordable offices. This is mainly driven by the fact that the number of ready affordable residential projects exceeds the number of ready affordable office projects today," said Alwadiya.

Kumar said the demand for affordable residential units was higher than affordable commercial properties in Dubai.

"Demand is for locations that are established in terms of infrastructure and buyers prefer to be closer to such areas. It is difficult to put a number but the market sentiment is high for affordable housing projects," he added.

Since affordable housing developments have so far been attracting bachelors/ single families, the developments are not fully equipped with community facilities and amenities, said Gafur.

"The developments are not fully geared to provide all the support elements such as groceries and other shops. Once these services are up and running fully, a wider and general audience will consider buying into these properties and drive demand levels much further."

No major defaults

Analysts said there were no defaults arising in the affordable housing sector.

Alwadiya said: "The rate of influx of population to the emirate still exceeds the rate of departures and if we examine the profiles of the inflowing and outflowing population, we will notice that most of the departures were from the blue collar population who were forced to leave because of the slowdown in the construction sector. On the other hand, the influx has been fuelled by white collar or investor population."

Gafur said: "We have not noticed major defaults on payments across the affordable housing sector mainly because the developers have started to adopt flexible payment schedules."

"The initial panic mode that did prompt a few from even the affordable housing sector to relinquish their investments has stopped now. Current defaults are few and far between, with buyers understanding the medium- to long-term positive ramifications of property investments. Investors and homeowners having repayment-related issues also have the option to work out relaxed payment plans through developers or mortgage providers, thereby reducing default risk even further."

According to Kumar, in the early days of freehold property, the affordable real estate was bought mostly by investors who retained it for rental return or capital appreciation.

"Even though rents have corrected, first buyers of these projects enjoy a fair return on their investment. These products are always preferred by investors as well as end users and now that the market has been regulated, more end users will come forward to buy affordable housing projects," he said.

Kilzi said buyers of affordable units are the ones most affected by the economic crisis as they were the ones intending on staying long-term and relying on their monthly income to cover their mortgage.

Careful with agreements

Analysts said the current economic crisis has taught buyers to become more careful when it comes to reviewing their sales and purchase agreements.

"Compared to the earlier days of property sales, sales and purchase agreements have come a long way in terms of transparency. Reputed developers providing housing solutions within both the affordable and high-end sectors have placed a lot of emphasis on their sales and purchase agreement documentation policies, especially since the emergence of local authorities such as the Real Estate Regulatory Agency. There are further improvements that still need to be made in order to achieve the effectiveness and transparencies seen in the developed markets. That will happen as the market evolves and grows, and there are many instances of this taking place currently," said Gafur.

Kilzi added: "Most real estate developers have become aware of the market situation today and have learned that transparency is the best policy. With many having to agree to lower prices and give discounts and compensations to prevent people from defaulting, it is more apparent recently that transparency in communication as well as in purchase agreements has become a critical need."

Oversupply in Dubai residential market expected to keep real estate rents low

Property rents in Dubai are expected to continue falling this year with the oversupplied residential apartment sector likely to see the steepest falls.

The third quarter will see further falls but it is hoped that prices will stabilise after that, according to the latest report from real estate consultants Landmark Advisory.

There is also hope that the sales market is stabilising. Distressed sales opportunities are largely finished, as sellers refuse to lower existing prices, the report claims.

In some cases, buyers are paying increased rates for sought-after residential developments with limited homes available, according to the transaction-based reference map.

'Smaller villa developments with a limited supply that have tapped into sufficient value recognition among end-users with regards to location, layout, build quality and amenities/facilities are among those residential developments experiencing price increases,' said Jesse Downs, director of research at Landmark Advisory.

Landmark said apartments had experienced a steeper fall in rental and sales prices than villas, and that this would continue to be the case.

The combination of the economic downturn and the completion of a large number of high rise apartments last year have resulted in an oversupply in that segment, the report said.

Meanwhile rents in Qatar are expected to rise over the next year as units from the $14 billion real estate The Pearl hit the market and fuel demand. Properties in Qatar are also expected to hold their value well compared to other GCC countries, according to property broker LifeStyle Homes.

'While the initial panic created by the economic crisis led to selling of some properties, the value of high quality projects in Qatar are expected to remain higher as opposed to the rest of the GCC countries,' a spokesman said.

Property lenders Amlak and Tamweel to unite

According to Amlak Finance and Tamweel, two Dubai-based property finance groups with total assets of around 7 billion dollars, have begun a merger process.

They said that the merging of the two largest finance groups under the supervision of UAE Real Estate Bank will create the largest real estate finance institution in the country.

In the first half of 2008, Amlak Finance had assets of 14.2 billion dirhams (3.86 billion dollars)
and Tamweel's assets were worth 10.8 billion dirhams (2.94 billion dollars), giving a combined value of 25 billion dirhams or 6.8 billion dollars, WAM reported.

News that the merger process is underway, after the idea was mooted in early October, came on the eve of the start of a new stock market week in the Emirates, where property stocks have fallen sharply in recent weeks amid the global economic crisis.

Property developers granted payment extensions

In order to put an end to the confusion and panic that is currently existing in the market, the master developers are said to be offering payment extensions to property developers in Dubai.

A developer in Dubai, when speaking to the media, revealed that when they requested their master developer to defer their land payment, they were readily granted a three-month extension.

The extension granted was for a plot of land on the waterfront development, for which, the developer had remitted 50 percent of total value at the time of purchase.

In the meantime, the infrastructure projects in Dubai, such as the plans by Roads and Transport Authority and the new Al Maktoum International Airport in Jebel Ali, would all proceed as stipulated in Dubai Strategic Plan 2015.

According to Nasser Al Shaikh, the Director General of Dubai Department of Finance, a growth rate of 11 percent annually, is expected until 2015, but with the current situation, Dubai would continue to witness economic growth, although at lower rates.

The government and financial institutions are getting highly transparent in their operations and transactions. This is more evident, with Dubai initiating new laws to regulate its banking and property sectors, and this is no-doubt a positive outcome of the global crisis.

New Fees for property owners

Freeehold property owners in Dubai will have to pay two maintenance fees under a new law to be implemented in three months, an official said.

The combined cost is likely to be considerably higher than the single amount currently paid. Anyone who fails to pay could face stiff penalties.

The first fee, a service charge, will be paid to an association of owners of flats or villas in a building or development. And, as now, a fee will be paid to the developer, although this charge may be lower than at present.

The changes are part of the new Strata Law, said Marwan Ahmed bin Ghalita, CEO of Real Estate Regulatory Agency (Rera). Anyone who refuses to pay the fee to the owners’ association after three warnings will face face stiff penalties.

“The law covers jointly owned buildings,” said bin Ghalita. “It applies to residential and commercial buildings, including hotels and compound villas, in the freehold areas.

“For example, buyers in a freehold residential tower will form an owners’ association as soon as the first flat is registered with Rera. They will then select members of the society to deal with issues relating to the property.

“In a project such as the Burj Dubai there are many residences, offices and hotels. Each property will have a separate owners’ association.

“The new law defines the rights and obligations of project owners, developers, floors owners and flat owners in relation to the use of facilities such as storage areas, car parks, gardens, swimming pools and gates. It also regulates joint services such as building management.”

Bin Ghalita said many owners who currently pay high maintenance fees to developers were receiving poor quality service in return.

“Under the new law the owners’ association will have to pay the service fees into a dedicated account at a bank chosen by the members. The association will then have the option of selecting the company that will look after the maintenance.

“The developer’s fee will be paid through the association and will cover shared facilities such as roads and parks.”

Dubai Property market investment

More property investors are purchasing Dubai Property than anywhere else in the world where investors can expect almost a 30% or more return on any property. Dubai is one of the few Arabian states open to the West in terms of culture and social integration and secure in terms of political and economic environments. The Dubai property market is growing and anyone who invests in the property in Dubai will see a rapid turnover in their investment.

Property prices have increased year on year since the launch of the freehold properties to overseas investors but despite this there has been no apparent let up in Dubai property sales. Recent studies suggest that the demand for residential and commercial Dubai real estate is likely to continue for the foreseeable future.

Among the popular Dubai property and real estate development include:

• Acacia Avenues
  
• Dubai Marina
  
• Business Bay
• The Palm Islands
  
• The World
  
• Dubailand
  
• Downtown Burj Dubai
• Jumeirah Lake Towers

Dubai Promenade

Introducing Dubai Promenade, a sophisticated waterfront community creating a virtual peninsula along the Dubai shoreline in New Dubai.

Surrounded by the sea, marina and natural beach, Dubai Promenade offers panoramic views, idyllic walkways, scenic vistas and carefully considered architecture to create a distinctly different environment.

Celebrate the luxuries of watching a majestic sunset, taking an evening stroll on The Pier, window shopping on The Waterfront, or just breathing in the open sea .

Rejuvenate and relax with access to the finest luxurious amenities from the iconic circular shaped hotel to fine dining or pampering spa treatments within walking distance from your private residences.

Although Dubai Promenade has the feeling of a secluded, private resort, it has all the advantages of an ideal location and total accessibility. It is also conveniently connected to Dubai Marina’s “Marina Walk”. Dubai Promenade has its own exclusive 70-berth marina, with direct access to the Promenade.

The community’s residences are elevated above base level and situated on a podium structure. A dedicated homeowner ramp allows for direct access to the podium, which then conveniently routes residents through and exclusive entrance to their car park spaces. Alternate transportation options will also be available, providing easy access for guests and residents

The Promenade Retail Link has over 26,000 square metres of amazing shopping configured in a unique indoor-outdoor arrangement.

The Pier is an area that’s accessible to the public. It’s a great spot to enjoy a meal at one of the cafés, take in the fantastic views or just watch the sun set.

The Waterfront runs the entire length of the Promenade, overlooking a 70-berth Marina. It has a wonderful maritime ambience that includes many fine restaurants and shops.

The cafés, restaurants and specialty shops will form a buffer between the public and private areas of Dubai Promenade.

Dubai Promenade is strategically situated on its own peninsula, directly facing the Gulf, with breathtaking vistas of Palm Jumeirah and along the coast. Dubai Promenade has the distinction of having truly uninterrupted sea water views.

You can marvel at the glow from the lights of an exciting new city. Or turn your back on it all and bask in the glow of moonlight over the quiet Gulf. Only Dubai Promenade can offer such vantage points. Besides its unique waterfront location, Dubai Promenade is also ideally situated in New Dubai, home to the city’s best entertainment, schools, retail, and hospitality offerings.

What makes Dubai Promenade truly special is the way in which all the elements come together to create not just a development, but a community - a place that can truly be your own little world.

The Residences consist of three beautiful tower complexes. Each is inspired by and takes its name from Dubai’s rich seafaring tradition.

The Channel Towers - Al Shimal, Suheili and Al Gharbi are named for local winds.

The Marina Towers - Safeena, Fulq and Sarieh are taken from ships and vessels.

The Beach Towers - Douj and Heirrat are related to the Gulfshore.

Dubai Promenade’s commercial space features The Office Tower, a distinctive property in a prime setting that provides an ideal place to conduct business.

Hospitality space comprises two world-class hotels.

The Icon Hotel serves a fitting centerpiece to Dubai Promenade and an unmistakable addition to the cityscape of Dubai.

The Boutique Hotel offers elegant and convenient lodging. Stunning, graceful and stylish.

Dubai Promenade offers a harmonious union of residential, office, hospitality, retail and commercial space, along with many other points of interest.

Residences:

The Channel Towers - Al Shimal, Suheili and Al Gharbi
The Marina Towers - Safeena, Fulq and Sarieh
The Beach Towers - Douj and Heirrat

Business Sector:

The Office Tower

Retail & Amenities:

The Promenade Retail Link
The Pier
The Waterfront
The Marina

Hospitality:

The Icon Hotel
The Boutique Hotel

• The development size built up area is approximately 1,060,000 m2
• The expected population is approximately 20,000 for Dubai Promenade with approximately 9,700 residents
• The Channel Towers built up area is approximately143,300m2
• The Marina Towers built up area of approximately 147,000 m2
• The Beach Towers built up area of approximately 90,500 m2.
• The Office Tower built up area is approximately 32,835m2.

Dubai World Holds Key to Property Revival

A move by Dubai's flagship conglomerate to sell some trophy properties could help turn the gears of a commercial real-estate market that has been stalled for more than a year.

Dubai World hasn't said specifically that it plans to unload real estate in order to raise cash to pay its debts. But in a statement detailing debt-restructuring plans early Tuesday, Dubai World said the restructuring process would include "assessment of delevering options, including asset sales." A Dubai World spokesman declined to comment on possible property sales. Dubai World owns high-profile properties around the world, including office buildings in New York and London and luxury hotels across the U.S.

Dubai's problems are coming to light as property investors navigate uncharted waters. Banks and troubled borrowers haven't flooded the market with cheap properties, even though rent and occupancy are still declining around the world, financing remains scarce and defaults are soaring. Lenders, hoping to avoid markdowns on their balance sheets, have largely shied away from foreclosing on overleveraged building owners. That has left investors thirsting for deals.

"Perversely, increased availability of good quality assets to buy would improve liquidity in the market as there is strong demand at present for limited stock," says Peter Damesick, head of U.K. research at commercial real-estate services firm CB Richard Ellis Group Inc.

In the U.S., the total value of all commercial real-estate deals of $5 million or more will reach just $49 billion in 2009, research firm Real Capital Analytics projects. That is less than one-tenth of the $497 billion in deals done in 2007, and even less than the $79 billion in deals done in 2001. Meanwhile, real-estate private-equity firms around the world are sitting on $172 billion in commitments from investors, according to research firm Preqin.

"There is no product out there, there is nothing to buy, and there's a lot of money out there that would love to buy," said Sam Zell, the real-estate "grave dancer" who made a fortune from earlier downturns.

That could be one of the few bits of good news for landlords who need to raise cash by selling buildings. Bidding has been especially heavy when prime properties—such as fully leased, trophy office buildings in major cities—have gone on the block.

Buyers have been most aggressive outside the U.S.. In Hong Kong, a wealthy investor in September purchased a 23-story office building for $465 million at a 4.3% yield—recalling values at the height of the bubble. In London, the average yield that buyers have been willing to accept fell one percentage point over the past six months, signaling an uptick in valuations, according to Real Capital Analytics research director Dan Fasulo.

International investors have also been looking for deals in the U.S., in some cases driving up values. German property-fund manager Deka stunned American real-estate investors when it agreed to buy a 12-story office building in Washington for $208 million. And in recent months, the Manhattan headquarters of HSBC Holdings PLC drew 43 bids, according to Steve Collins of commercial brokerage Jones Lang LaSalle Inc., which worked on the deal. The top four second-round bidders were all international groups willing to pay all cash, Mr. Collins said. The building ended up going in October to Israeli investment company IDB Group for $330 million in cash.

Dubai World's New York office buildings include Six Times Square, purchased for $300 million in 2007, and the 40-floor 450 Lexington Ave., acquired for $600 million in 2006, according to Real Capital. In London, Dubai World owns several postcard buildings, including the Metropole Building, 10 Whitehall Place, Grand Buildings on Trafalgar Square and the Adelphi office building on the Strand.

"They own a lot of assets that a broad swath of investors would love to get their hands on," Real Capital's Mr. Fasulo said of Dubai World. But, he added, "even if some of these prime assets do come to market, I think that any who believe that they're going to pick them up for pennies on the dollar are living in a fantasy land."

Dubai World borrowed heavily to ramp up its real-estate holdings. The company's investment arm Istithmar in the past few years borrowed about $1.1 billion to acquire five properties in the U.S., including four hotels and an office building, according to an analysis of public records by Trepp, a New York firm that tracks the commercial real-estate market. About $816 million of that debt was bundled into commercial-mortgage-backed securities, Trepp's study shows.

But top-of-the-market deals done with a lot of borrowed money may have little equity left to save, complicating any strategy to raise money via asset sales. In New York, the $115 million mortgage used by Istithmar to buy the W Hotel at Union Square was transferred in late September to a "special servicer" because of concerns over imminent default stemming from the hotel's dwindling cash flow, according to Trepp. And in Miami, Dubai World remains in talks with lenders to avoid default on a $670 million construction loan on the newly renovated Fontainebleau hotel there, according to people familiar with the matter.

History of Real Estate in Dubai

Dubai has experienced tremendous growth. Two hundred years ago there was nothing but rolling desert sand on the land where the city's metal spires now rise. The Dubai of today would shock the desert nomads, who were once the region's only visitors.

Origins

1. In 1833, 800 settlers founded the town that would become modern Dubai. Members of the Bani Yas tribe, they established a port, engaged in trade, and dove for pearls. The descendants of the Bani Yas are the current rulers and majority land-owners of Dubai and the United Arab Emirates.

Dubai's Port

2. In 1902, Iran began to collect high tariffs on goods shipped into its port at Bandar Lengeh. Much of Bandar Lengeh's trade went to Dubai, which had no such fees. Regular steamers from India were established two years later, with increased trade and investment following.

Citizenship

3. A small minority of Dubai residents are citizens of the emirate. The population is mostly immigrants with work visas and few rights. Foreigners are not allowed to own land in Dubai.

Ownership Rights

4. By law, citizens of Dubai own the property on which their houses stand; only foreigners are obliged to rent. In 2002, Dubai began to allow foreign property ownership, though not land ownership. The change contributed to the real estate boom of the following years.

The Palm Islands

5. 
   A blueprint for one of the Palm Islands.

New Dubai Property Laws: A Major Step Forward

Last year his highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, introduced new Escrow (Trust) Account Law in Dubai, to retain investor’s confidence and Emirate’s reputation as reliable real estate market. An integral step for the real estate sector was taken where law ensures the money is released only with the approval of Dubai Land Development (DLD).

The introduction of Law No. 8 has been well accepted by developers and agents as they realize it can drastically help in stabilizing the market and will increase investor confidence. The mechanism introduced, to cancel registration of developers that fail to perform, has also given a boast to investor’s confidence in this sector.

Considering the grievances of property investors, Law No. 13 has put an end to the woes and expected an increase in property investment. The legal consultants suggest that the new law will make Dubai real estate market, investor friendly.

Will Grinter, legal consultant in the UAE at international law firm, Clyde & Co, said: "The law is a further step forward in Dubai's aim to develop an appropriately regulated real estate market, with particular emphasis on transparency and consumer confidence."

According to the new law, no developer can launch a project and collect deposits without giving a guarantee, that, the funds would be used appropriately. The Real Estate Regulatory Agency (RERA) is a government agency that has its own administrative and financial independence to regulate real estate sector in Dubai, legally. This was inaugurated by His Highness Sheikh Mohammed Bin Rashed Al Maktoum, vice president and Prime Minister Ruler of Dubai, as a part of the Dubai Land Department, on 21 July’07. Now, RERA would keep a close look at the issues that have led to the fall in investor’s confidence in this sector, due to the delay and lack of funds. Escrow accounts for each development must be managed by financial or banking institutions approved by the DLD (referred to as “Escrow Agents”). Therefore, Law 13 states that the contracts of all sales of off plan properties must now be registered with the Land Department, creating a fixed official database of all property transactions. In addition to that, Law 14 - the mortgage law, suggests the pre-registration law facilitates securing the proof of land titles by the bank. Before this law came into existence, certain developments could get finance by showing banks their internal register of buyers and giving MoUs that they wouldn't transfer contracts without a No Objection Certificate from them.

Impact of New Laws on Dubai

The new law filled investors with new confidence to invest, as the land transactions in Dubai earned Dh175 billion, as compared to Dh162 in 2006. Several renowned property companies like Tanmiyat Group, Schön Properties and Fakhruddin Properties have registered their accounts on ESCROW, for the projects they have already started.

The high rise residential properties or villas by the lake and commercial properties for businesses are the hub of real estate investment in Dubai. Off plan property requires 10% deposits with the stage payments, which is a boon to extend investment potential. Multiple units attract discounts and the tax free nature of Dubai means your money is set to grow without penalties.

It has been noticed that the Dubai Government is more interested in overseas investor, thus they have changed their freehold laws to attract them. Before we discuss this, what is a Freehold law? The owner of a freehold enjoys the most superior form of private property ownership with complete title of the property and land. The new Dubai freehold property law entitles that the Foreigners will have the right to lease or purchase the land after the buyers and investors take permission from the three major developers of Dubai - Emaar, Al Nakheel, and Dubai Properties. The ownership will be granted to a foreigner only after the developers submit the No Objection Letter from the bank, that the payment has been made in full. One of the important aspect of this law is the clause which talks about, legalising their property purchase by registering with the authorities. Another important feature of the law is the recognition of the land development lease. The Freehold law would specify the functions and responsibilities of the Department of Land and Property, which has so far been doing all the work by virtue of practice, without legal clarity. Now as per the law, this department would have to approve the land map and the fees and determine the survey area.

According to the ‘Property Law in UAE’ article : “The DIFC is a federal financial free zone that was established in accordance with UAE federal law and Dubai law. The Real Property Law (DIFC No. 4 of 2007) (the “DIFC Property Law”) creates a new registration system, pursuant to which the DIFC will guarantee freehold and leasehold title (for a term of over 1 year) to real property within the DIFC for all companies and
individuals, including foreign companies and nationals. An instrument does not transfer or create an interest in real property until the interest is registered. Completion of the registration, according to the DIFC Property Law, is conclusive evidence that the property owner is the owner of that interest and that its title to that interest is
indefeasible and is enforceable by the DIFC courts. Leases with a term of less than 1 year may, but need not, be registered, and if they are not registered, they are still valid as contracts and enforceable by the parties. As with the Dubai Property Law, interested third parties may be registered.

Concluding this discussion, many leading estate agents have predicted, a wave of prospective buyers to enter the real estate sector due to these changes and the rental yields looking strong. As per the experts, Dubai is now the perfect destination for the overseas investor.

Hard money and bridge loans for real estate

Although the hard moneylenders were largely affected when real estate industry crashed in the 80’s, recent credit crunch has brought more business to this sector. People who are in need of loans are turning towards hard money loans after the financing by traditional lenders and banks has come to a halt. The casualness and irresponsibility of these banks and lenders when giving out loans in the past has hit them hard and they are going through a severe liquidity crisis. With this serious drop in supply for finances, hard moneylenders are seen as a reasonable alternative. People and businesses are short of funds, and naturally they have to go for the best substitute available. A hard money loan comes as a last resort in such situations.

Characteristics of a hard money loan:
Hard money loan goes by the principles of mortgage; the distinguishing characteristics are the interest rate and the time consumed in approval. A loan application can take quite some time before getting through all the procedures and verification process that are part of a bank policy. Whereas hard money loans are issued normally by private lenders (though you can find many commercial hard money lenders as well) in relatively short time at higher interest rates and lower loan to value (LTV) ratio. The interest rate or loan to value ratio is not fixed and it keeps changing with the ups and down of real estate market. Hard money loans are often for short period of time (also known as bridge loans) that means the correct quick-sale valuation of the property is vital for the lenders.

Some tips for the borrowers and lenders:
As a borrower, you need some extra efforts to convince hard money lenders (these extra efforts are compensated by their fast approval time, once they are convinced), a hard money lender will believe you more if you are ready to put your cash into the deal as well. This is why they emphasize on low LTV ratio more than your previous credit score when compared to traditional lenders. Along with the advantage of their availability in even hard financial times, they are a much better option when you need quick finance. Being a lender, you should be extremely careful when determining the current value of property. Over estimation or wrong valuation can cause you serious loss in case of default. Also borrowers should try to reach hard moneylenders themselves, without bringing too many agents and brokers in between, as it will save them lots of upfront costs and expenses.

Financing options for real estate buying

Buying a home is probably the biggest purchase (and maybe the biggest dream as well) a common man makes in his life. Having your own home is seen as a milestone in anybody's life. However it is not so easy for most of the middle class families and it may cost a good percentage of their lifetime savings. Same is the case with real estate investors, many times they see a piece of property that comes as an extremely good investment opportunity but few investors have that much cash in hand all the time. The bottom line is that you need some modes of finance, if you are going to buy some residential or commercial property. Following are some commonly used (and some not very common) options.

Mortgage loans:
When you are in need of buying a property and not having funds for that, you will go for the loans. In this case the lender will be an investor, who is giving out this loan as an investment (known as ownership investment). These investors need to have some security that they will get returns on investment or at least the amount they are investing. When you pledge your home as a security to your lender, it is called a mortgage. The lender now has a claim on the property, and in case you are not able to pay back in future, he has the option to sell the property in auction (foreclosures). Mortgage is the most common source of finance for most real estate buyers and investors. You can chose between fixed rate mortgage and adjustable rate mortgage, there's a third type as well that combines the advantages of both fixed and adjustable rate mortgages (called blended rate mortgage).

Government housing schemes:
Governments, in order to facilitate their citizens, offer housing schemes for middle or lower class people. Also there are some organizations or local government bodies offering housing finance. These loans are not valid for investment purposes, but if you are looking to purchase a home for your own use, you must look into these schemes. If you are eligible for such loans, the rates will be much lower than commercial loans. These schemes vary from state to state or country-to-country, in United Estates some well-known schemes are VA loans or FHA loans.

Family or your credit cards:
Borrowing from your family or friends is another good option. Unlike commercial lenders, they will be much more cooperative (depending on your relations). In most cases you don’t have to pledge your property or some other assets as a security. On a side note, for lenders lending to their friends or families, there's nothing wrong in making a written agreement. Credit cards are not a good long-term financing option, but it can be helpful when you need relatively small amount for down payment or monthly installments.

Marketing techniques for Real Estate Agents

With cut throat competition in almost any profession, you need to have the upper hand in order to succeed. Yes, Real Estate was one of the most lucrative business options until a few years ago. Not that it has become any less lucrative now, but there are Real Estate professionals joining the bandwagon by the dozen everyday. You might be amazed to know that there are millions of Real Estate professionals in the United States alone. Now, for you to get business when there is so much competition around is not easy at all. You need to give the customer a genuine enough reason for him to choose you over your competitors. Why should he hire your services? What do you offer that the others do not? This is where marketing skills come into the picture. Yes, if you know how to market your skills the right way, you will succeed in no time at all. Read on to find out the best marketing secrets for Real Estate professionals.

The Internet:-

The internet is an extremely powerful global presence which needs to be tapped into. Yes, marketing on the internet has reached astounding levels and you need to have a professional looking web presence to utilize it. Consider this website on the internet as a billboard that advertises your skills to the whole world. Considering that it does this 24x7, you might as well spend a decent amount on the website. Real estate web presence is recommended today and will be mandatory tomorrow for a realtor to succeed in the business. There are many tools which can be added to the website to maximize its potential and create a brand out of your name.

Tools:-

Blogging has brought a new level of interactivity to marketing. Almost any service professional looking to market his or her skills online will create blogs online. You too need to do this. Create blogs with information about Real Estate that you have and leave the address of your website at the end. When potential customers will find this blog of yours, they will consider using your services. Remember, the blog and the website go hand in hand in getting you the business. So you cannot deny even one of them. There are several other tools that can be used to get more business. Newsletters are one of them. You need to understand that not every visitor to your website will be a customer. He may or may not hire your services in the 1st visit. So you need to give him something to remember you by and that something better be good. It can be a free gift if he signs up for your newsletter which gives him wonderful Real Estate information free of cost. Believe me, the world loves freebies.

Combining forces:-

Now that we have been talking so much about online marketing, you also need to remember that good old marketing skills like PR, direct marketing etc still hold good. Indulge in some direct marketing to see what’s working for you and what isn’t. When you combine the forces of internet marketing along with direct marketing, you will have great results.

Property market in Dubai: Will the prices keep climbing?

The ever growing demand for prime property has also engulfed the emirates and in the last few years, prime locations in the emirates like Dubai have seen a real estate boom. Considering that Dubai was a highly competitive but low priced market, this real estate boom is the last thing that the government wants. A lot of experts feel that Dubai is heading pretty much the same way where some of the Asian markets have headed in the past, towards overpricing. The reason for this is pretty simple. There is not enough supply to meet the demand in Dubai.

Post 2002:-

In May 2002 the crown Prince of Dubai, Sheikh Mohammad bin Rashid Al Maktoom made a stunning announcement which shook the foundations of the real estate market in Dubai. This allowed foreigners to buy freehold property in Dubai. What this did was that it opened new avenues and the market immediately boomed. The tax benefits, business advantages, the continuous rising demand and the lack of supply have also contributed to the steady rise in property prices in Dubai.

The Population:-

Along with the above mentioned factors one should not forget that Dubai is one of the fastest growing populations in the world. The prosperity of the city and the strong trading tradition are also adding to the demand for property. This in turn is increasing the pressure on rental demand and the prices for property. Many experts consider this to be one of the safest markets ever to venture into.

Curbing the rise:-

There is only one simple way to curb the rising graph for property prices in Dubai and that is to increase the supply. The government seems to have hit bulls-eye this time and has announced a lot of massive projects that will ensure that the market is well supplied for a lot of time to come. The Dubai waterfront mini city near Jebel Ali, the 250 tower Dubai Business Bay are some of the prime properties coming up in Dubai. These will surely curb the rise and prevent capital values from going too high for some time. But once again, the problem is that there is a lot of time for these projects to be completed and delivered and till that time, the demand will increase manifold.

Where is it headed:-

The government has announced and is working towards making Dubai a safe market where money can be invested with a long term goal. It does not want Dubai to become a market dominated by housing options that can swing either way any time. Hence there are continuous and dedicated efforts to keep the supply in line with the demand. There are also talks to price the short term speculators out and to encourage long term investment. Most experts are waiting for the demand and supply to top out and for a market correction to happen which should set the prices right. If you are planning to take the plunge into the real estate market in Dubai, then this might not be the right time. Wait for the prices to go down or if you are a risk taking person then you can perhaps venture into the real market in Dubai but making sure not to put all your eggs in one basket.

Dubai economy growing through Real Estate

Dubai is the first country in the United Arab Emirates that ventured away from oil as its main source of income. Today oil contributes only 6% of the nation's GDP. Dubai has steadily and determinedly worked on transforming itself from an oil rich country into an important trade center and business port. It has done several things to attract western investors, both individuals and corporations, to set up shop there. Dubai is also the biggest banking and financial market in that area.

Besides business, Dubai has also worked hard to attract tourists and continues to develop on the theme to provide increasing number of options in terms of accommodations and also activities. There are some truly stunning resorts that have been and are being built in Dubai to attract tourists and business visitors. There are specific zones free zones in the city that have been set up to attract specific industries. Many international conglomerates like IBM, Oracle, CNN, Reuters, and Microsoft have substantial presence in Dubai.

The Real Estate market in Dubai is flourishing due to the efforts of the government to diversify in the tourist and service industry. Huge projects like the Palm Jumerirah and The World are being created on manmade islands and have caught the world's attention even though some of them are still under construction. Inside the city you will find the world's tallest skyscrapers and also Burj Aj-Arab, the world's tallest hotel. The Burj Dubai is currently under construction and once it is finished it will be the tallest building in the whole world. Another project underway covers a new business district and will comprise of 500 skyscrapers.

Dubai's economy reported a 16% growth in 2005. According to the Dubai Department of Economic Development (DED) its estimated worth was around $37 billion back then. It is expected that Dubai's economic growth will surpass that of China, which is considered to be among the fastest growing economies today. China's current growth rate is 8.5% According to the DED Director General Mohammed Ali Alabbar, Dubai's economy is quite sustainable in the long run. He stated that the business friendly government policies will help to keep the economy growing at a steady pace.

Considering that Dubai's economy was only $17 billion in 2000 the accumulated yearly growth of Dubai's economy is the highest in the world for the last decade. Mr. Alabbar also pointed out that this growth was a direct result of the government decision to diversify the economy and move it away from reliance on the oil industry.

In 2005 the non-oil industries in Dubai contributed to nearly 94% of Dubai's GDP. This is the clearest evidence that the government did the right thing by moving away from oil and focusing on other industries like business, tourism, hospitality, and others. For the past few years the economy of Dubai has shown some truly remarkable growth patterns and the continuing focus of the government on making newer policies in the same vein is going to ensure that the growth does not slow down any time soon.

Investing in Dubai Real Estate

Dubai has caused some remarkable changes to the Real Estate and development industry all over the world. Dubai is a place that offers a great combination of the tranquility found only in the desert and the lively bustle of bazaars and several attractions for visitors, residents, and workers from all walks of life. Dubai is the leading commercial hub with the latest infrastructure and the among the best business environment to be found anywhere. Dubai offers all its investors with a wide range of value-added options that make it the ideal place for any business. Dubai has a tropical climate and one of the most dynamic business centers in the Middle East. The city combines 21st century sophistication with the simplicity of the old days.

There are several comprehensive investing solutions that include sourcing prospective properties and reservation and also exchange, completion, and the management of property. There are several types of properties like residence, holiday homes, retirement property, and simply an investment opportunity. Dubai has the latest amenities and the highest living standards in the world. Dubai is also unique in that while the rest of world has seen fluctuations in its Real Estate markets in the past few years Dubai has shown consistent growth with property rates appreciation an average of 20% every year. In addition to this there are several financial options and also the culture of resale that make it an excellent decision to buy property in Dubai.

The number of properties that are being traded in Dubai has ensured that for the next few years at least the growth will continue at its current rate. Though the growth of Dubai Real Estate market has been explosive and sudden it is the combination with the rising status of Dubai as an excellent business and visitor center that has made it such an excellent international business proposition. Today Dubai is the best place for anyone looking for business opportunities in property investment.

There are several advantages to owning property in Dubai. Though the business angle is quite good you must not neglect the excellent beach front properties that you can also use for investment. The Dubai Marina is just one example of such a development. It is one of the most exclusive and high-demand developments in Dubai. The Dubai Marina offers panoramic views of the entire marina and also allows quick access to shopping areas and has many themed restaurants.

The trick to investing in Dubai property is to choose carefully. Because of the high number of properties available you need to be careful which one you pick so that your investment has the maximum yields. Also make sure that if you choose to work with a realtor you are offered the complete package that includes financial and legal services. If you are ready to invest then this is the ideal time to do so. Dubai is also among the most expensive places and prices are going to go up for the next few years so it is best to get into the market as soon as you can.

Ownership rules and the mortgage market in Dubai

In 2002 the government of Dubai created freehold property zones in the city. For the first time foreign individuals could own property in the freehold areas of Dubai. This has resulted in an unprecedented boost in the real estate market leading to massive construction projects that are among the best in the world. The new law was established in order to enhance the confidence of property buyers in the legal system. The legislation was intended to attract foreign investment through international developers that always prefer to work in countries where the laws are straightforward and keeps things simple. Before the law was passed foreign nationals could only get a 99-year lease at a maximum but it was only since 2002 that they could actually own property in the freehold areas of Dubai. Another good thing about the legislation is that it helps to support 80% of Dubai's population, made of non citizens, to rent out the property and lead better lives. Freehold property owners in Dubai can rent out their property on 99-year leases of their own.


According to the new laws people looking for buying property in Dubai will now have outright ownership of the construction as well as the land below it. There will no going back between freehold and leasehold. The new Dubai property law means that you can register the property under your own name with the Dubai Land Department. The best part of all this is that the Dubai Land Department uses the latest technology to manage everything so there is no need to worry about endless paper work and fussy rules and regulations. Everything is designed to work smoothly for everyone. Before 2002 the buyers kept a contract of the sale from the developer that allowed them to transfer the ownership only through the developer. The contract included an agreement that the freehold property would be granted as the freehold title as soon as it was ready. The new law says that the title deeds can be handed over the owners a lot sooner.


A huge impact of all this can be seen in the mortgage market because of the high rate of construction and property trading going on in Dubai. The resale market is boiling hot and international banks, especially Standard Chartered Bank, are vying to enter the market to offer financial loan options. Hitherto the same institutions were unwilling to enter the market because of legal uncertainties. It is now fully expected that many banks are going to aggressively enter the market and lower the mortgage cost and offer highly competitive prices and several new services. Introductory discounts are going to make a huge difference to the mortgage market. It has generally been noted that the lower the cost of the money the higher the price of property. One of the reasons for high rates of property in the world is the low cost of money.


The new law will make it sure that there will be many new buyers because of financing available and there will be a lot of movement in the mortgage market with people switching to better lenders.

Dubai – the number one choice for property investment

In the real estate industry, Dubai is seen as a prime target for investment purposes. In fact, real estates in Dubai have consistently grown at 20% annually, compared to other places where constant fluctuations are the order of the day. Even otherwise, the tradition of re-selling makes investment in real estates in Dubai a tempting offer. Dubai is such a place where people find the placidity of a desert, and the flurry associated with packed places. With all the technology and infrastructure at its disposal, Dubai has turned out to be a big commercial hub. In fact the areas in the Middle East are the best in business. The climate of Dubai is tropical, and a rare combination of the older and the newer generation can be found here.

Investment opportunities in Dubai are many, a few among them being reservations, exchanges, properties, and managing these properties. In fact, when it comes to properties, the various options available are holiday homes, commercial towers, residential properties, and many other opportunities for investment purpose. With the newest facilities, the living standard at Dubai is the highest compared to the rest of the world.

You can invest in Dubai’s real estate even though you may not ordinarily reside in the United Arab Emirates. Overseas buyers are finding it very easy to buy residential properties in Dubai. Due to the fact that Dubai excels when it comes to the tourism industry, many people are benefiting from the many incredible opportunities for investment available in Dubai. In fact, the booming tourism industry is a primary reason for the popularity of Dubai. Apart from the rental earnings from properties let out, you can buy properties for your private purposes as well. But before considering the purchase of properties in Dubai, get to know a few facts.

First, visit Dubai to get a clear idea of what is there on offer. Just going by someone’s recommendation will not help, and you will need to evaluate things yourself. Besides, this will increase your awareness about the lifestyle in Dubai which is very important. So make sure that you visit Dubai personally before investing in real estate here.

The concern of mortgage in Dubai also needs to be understood. It is very much possible to mortgage in Dubai even though you may not be a UAE resident. Barclays, HSBC and other international banks take care of these issues, but ensure to have a look at the restrictions imposed. But given that the situation of mortgaging has only improved, this cannot pose much of a problem.

There is another aspect that needs consideration, which is renting properties in Dubai. Emaar has recently banned short term lets on properties in order to keep down the bottlenecks to the development of those properties. However, this is applicably only to properties of Emaar, and short term means a period of less than half a year. So if you are considering buying properties for rental purpose, then by avoiding properties of Emaar, you will surely get good deals!

It has thus become clear that investment in Dubai is really a great opportunity and should never be looked down upon.

Home finance and home loans in UAE

Along with the growth in the Real Estate market, Dubai has experienced simultaneous growth in its home finance sector in the past three years. According to a recent study by EFG-Hermes the current outstanding loans stands at Dh 11.5 billion. It is estimated by the Egyptian investment bank that the UAE housing finance sector will grow by Dh 14bn in 2007, Dh 18bn in the year 2008, the growth is estimated to be Dh18bn in 2009 as well and Dh 14bn and Dh 17bn in the years 2010 and 2011 respectively. These figures have been derived based on an expected population compound annual growth rate of about three percent.

The most dominant forces in the Emirates’ home finance market are Amlak and Tamweel. They account for over 35 and 25 percentage of the industry respectively.

The Real Estate boom of the emirate has left the world spell bound, EFG-Hermes predicts that the total growth in the Real Estate should exceed the figure of Dh419bn in the years between 2008 and 2011. It has also been said that Dh 64bn will be funded through credit. The national bank of Dubai has tied up with Dubai properties for the sole purpose of finance apartments which are bought in tower ‘H’. Tower ‘H’ is a primary tower for residential purposes at Business Bay in the project of the executive Towers. This tie up of the national bank of Dubai and Dubai properties, is more than welcome, as this tie up will ensure easy financing terms for the people who are aspiring to buy apartments in tower ‘H’. These easy schemes will mean that people will be able t finance their dream homes with no obligations of interest repayment. In this case the loan is made available for 85 percent of the property price of a sum of 4 million AED, whichever is lower. This loan is provided for a period of 20 years. Dubai’s Islamic bank (DIB) and Al Islami home finance are also witnessing high demands from the retail customers.

They have recently launched solutions that aim to meet the requirements of retail customers. These customers include both the UAE nationals and expatriates who are keen on buying property in the UAE freehold property market.

In response to this high demand of the people, DIB has announced the launch of Mobile Mortgage Advisors. They are a team of mortgage sales expert who will be providing valuable consultancy at the customers door step.

Al Islami finance has launched finance solution products such as the “forward Ijarah” and “Ijarah”. Through the “Advanced Eligibility Process” customers get a right to choose their finance limit without first having to choose the property. The Dubai Islamic bank caters to the needs of a diverse customer profile. Also the al Islami home finance provides up to 90 percent finance and a maximum tenure of loan repayment of 25 years depending on the eligibility of their customers.

Dubai Metro all set to start as the longest automated rail system

Dubai Metro is one of those projects in Dubai (along with many others), which were discarded by the majority when they were first introduced. Many questions were raised over the likelihood of a world class metro service in this desert (even though, you have to think twice before classifying Dubai as a desert nowadays). Another question mark was placed on its projected completion date, especially after the financial crisis reached Dubai. With the completion date (9th September) nearing quickly, it is quite evident that the completed work is going to be less than what was anticipated. Nevertheless, it will be opening up on the said date, even if it's going to be partially operative. Dubai Roads and Transport Authority (RTA) is running advertisement campaign to exert a pull on more and more people to make it a success straightaway.

Dubai Metro is a fully automated metro service with the lines spreading on more than 70 km, with a total of 47 stations throughout Dubai. The project is divided into five lines with two of them under construction (Red line, Green line) while three are still in pipeline (Blue line, Yellow line & Purple Line). The project will cost an estimated 15.5 billion Dirham, which probably will exceed as the project move ahead (there is already an 80% increase announced in the budget).

Traffic congestion problems were getting increasingly troublesome for the people living or working in Dubai. Professional complained of spending hours on roads daily on their way to offices and when going back home. News of terrible traffic jams coming from all parts of the city was having a negative impact on Dubai real estate and tourism industry. Now hopefully, Dubai Metro is going to take the edge off the problem as it is expected to have 1.2 million passengers in a single day. With such a huge number of passengers converting to this mode of transport, there will be a definite relief for vehicles on road.

Some of the 29 stations we can expect to be operating at the time of launch are located at Deira City Centre, Nakheel Harbor, Khalid bin Al Walid and Mall of the Emirates. Dubai authorities and other stake holders are anxiously waiting for the initial response of public, the importance of this project is evident from the statement of Director of Marketing at RTA, who said “This is probably the biggest event in the history of Dubai, it’s going to change the way people live”.

Saadiyat Island promises to boost tourism in Abu Dhabi

Recently, Saadiyat Island in Abu Dhabi became the center of attention for the tourists, when it was awarded the Top tourist spot in Middle East, by World Travel Awards, rising above some of the bigger names in this region such as Palm Jumeirah of Dubai, The Pearl in Qatar, Blue City in Oman, Al Reem Islands in Abu Dhabi and many more. Saadiyat Island (literal meanings of the name are 'Island of Happiness') is one of those rare huge development projects in UAE where the construction work is still in progress, despite current financial crunch. Tourism Development and Investment Company (TDIC) is the name behind this mega project, teaming up with some world-class architects, designers and engineers like Gary Player, Robert Trent Jones II, Stregis, Zaha, Troon Golf, Gaggenheim and Buro Happold.

Saadiyat Beach:
Saadiyat Island has a shoreline that stretches on to 9 kilometers, which is projected to host 9 five star hotels, Golf Club, and a residential project named Saadiyat Beach Residences. Needless to say, that residents and tourists will be able to find luxuries like swimming pools, parks, supermarkets, restaurants, sport complex and schools. Good thing is, that the developers have not sidelined the natural beauty altogether. Hawksbill Turtle is the specialty of this beach, which will be protected by taking strict environmental measures.

Saadiyat Cultural District:
This probably will be the most sought-after area of Saadiyat Island among tourists, as it contains Sheikh Zayed national museum, Louvre (a universal museum), a fascinating performing arts centre and Guggenheim (another museum and kind of an art gallery). Apart from being masterfully designed structures, all of these museums and arts centers will be offering a wealth of educational, cultural and arts related information to the tourists.

Saadiyat Promenade & Saadiyat Retreat:
Saadiyat Promenade will be a vibrant place with an air of festivity, individuals and families can spend their holidays and leisure time in the restaurants, cafes and other recreational facilities at Saadiyat Promenade. Saadiyat Retreat is quite the opposite; it promises to be a peaceful place that makes it possible for you to move away from extremely droning routine life.

Saadiyat Lagoons & Saadiyat Marina:
Another residential area, Saadiyat Lagoon offers a contemporary lifestyle in the close vicinity of nature, as these lagoons are located right at the shores of Arabian Gulf (AKA Persian Gulf). Similarly, Saadiyat Marina offers many residential and commercial facilities like Prime Residential, Retail, community spaces and Maritime museum.

Federal Housing Administration Loans in United States

If you are feeling a little blue because of ongoing recession, you should better spend some time reading about the great depression, you will feel a little reassured, for the reason that things do not turn out as dire as they did at that time. Back in 1930, when the recession surfaced, it left the bigger part of the world’s economy in stutters, billions of people lost their jobs, all sort of trade and industries came to a grinding halt. When most people were finding it hard to have anything to eat, it was impossible for them to even think of owning a house. As a result, real estate market was comprehensively grounded and a push was needed from the government to get the things back in motion. It was that point of time, when Federal Housing Administration was instigated in the year 1934, with the objectives of facilitating both lenders and borrowers.

Although the term FHA loans sounds like it is a loan issued by Federal Housing Administration, in reality FHA doesn’t really give out any loan, all it does is to appraise loan application and provide a kind of insurance to the lender on approved applications. The need of this insurance arose from the financial conditions at the time of great depression, after that it has came up with several financing packages to deal with various economic situations, the most recent being the home financing program known as “Obama mortgage”. According to the official website of the department of housing and urban development, FHA has insured more than 34 million home mortgages up till now, which shows the wide spread influence of FHA loans on American housing sector.

The basic objective behind all types of FHA loan is enabling low or middle class families to have possession of their homes. Requirements to qualify for FHA loan are not different than other conventional loans, except that they are a lot more lenient (easy qualifying, low down payments, etc). Some of the basic requirements include a steady income, good credit history with no recent bankruptcy or foreclosures on your records, and of course the total amount of mortgage payment should be in accordance with your monthly income. You can also refinance your previous loan, to avail the benefits of FHA loans even if you had obtained a conventional loan earlier. Another thing worth mentioning is that you can obtain FHA loans only from the lenders approved by US department of housing and urban development.

Things to know before investing in some real estate market.

You must have heard about those real estate investors, who purchased some property at extremely low prices, in a relatively lackluster real estate market. Then for some reasons the property prices soared and the property owners earned huge profits in no time. They are some lucky guys? Aren’t they? But before you start envying them for being the fortune’s favorite, let’s get your facts straight. The fact of the matter is that it is the market analysis and foreseeing capability that makes the difference, more than luck or fortune. Real estate market plays an important role in the process of property valuation, even more than the property itself. Therefore, next time when you are about to invest in some residential or commercial property, spending some time in evaluating the market can make huge difference.

An overview of the market and economy:

Have a close look at the ongoing situation of real estate market; do you see a bullish or bearish trend? Do you think this trend is going to continue in coming days or there are some signs of change? The overall economy has a direct effect on real estate as well, if there is economic growth in some regions, real estate prices are supposed to grow as more and more people and businesses will step in to take advantage of the growing economy. If you can retain a residential or commercial property or even some vacant land in this region, it can bring huge yields. Projecting a bullish or bearish trend is not an easy task unless you have got the drift of economic ups and down. However, you can take help from some experts (though, they might get it wrong as well).

Vacancy rate, Rentals, Prices:

If you are looking for short term investment, where you wouldn’t have to wait for longer period before you start earning, then look for these indicators. Vacancy rate of a real estate market is obtained by dividing the unoccupied units to the total units available in the market. You can have an idea of the existing property prices and the possibility of rise or decline in rentals or property prices, in near future. A significant change in mortgage rate can also boost or reduce sales.

You should also check for the infrastructure and development work going on in the real estate market and adjoining areas, in particular if some big companies have recently entered or left the market.

Investing in vocational properties

Buying a vocational property (also known as Second Home) can be a handy investment, for it can serve two purposes. First, it saves you plenty of expenditures when you are visiting that place in holidays, second you can rent it out to visitors on temporary basis and enjoy good monthly income when you are not using it. What's more? You can turn it (or some part of it) into a restaurant or a shop if it is located at a place that gets plenty of visitors, during the course of a year. In short, owing or investing in a vocational property can be advantageous in many ways, but only if you choose the right location and pay attention to details.

First, you need to make your mind on what will be the primary purpose of this property? Would you be using this place a lot, as a vocation spot? Will it serve mainly as a place away from home and the normal hectic life? Or, the sole purpose of this purchase is getting income? Ideally, if you are going to buy a vocation property, it should be intended (and able) to serve both purposes, so that you’ll be able to derive some value from this investment, in any case.

Location:
Whatever your intended future usage of vacation property is, the location is going to play an important role. Being a vocation property, it is supposed to be at a less crowded area, away from the normal hustle and bustle of urban cities. It can be a small hill station (especially if you are looking for a vocation property in South Asian countries like India & Pakistan), a cottage at some beach or a farmhouse in some peaceful vicinity. You should make a choice after considering both, your inclination and the investment viewpoint. Also, keep in mind the travel factor.

Price:
Prices depend mostly on the popularity of area and the number of visitors it get. The availability of the basic necessities like electricity, gas, clean drinking water or the facilities like internet access and security, also matter. If you can foresee some place getting more tourists in the future (for example a new road is under construction, which will make it more convenient to reach there), you can expect significant hikes in near future. Generally, the closer some vacation spot is to a big city, the higher its land and properties will be priced.

Types of Vacation Property ownerships:
You can own a vocation property in more than one ways, in accordance with your budget and usage. For example “timeshare”, where more than one party use the property for a prearranged, fixed period. You can use it personally or rent it out for the time period allotted to you. You can also go for fractional ownership, where you actually own a fraction of property (in contrast with timeshare, where you are entitled to “use” the property for only 1 – 2 weeks in a year).

Modern day iconic buildings – What really makes them iconic?

No standard definition exists for an “iconic building”, maybe one thing which is common with all of these iconic structures is that none of them was built with a purpose to serve as an iconic building. Pretty drivel, you must have said, but then it’s hard to find any other similarity between a list that comprises of buildings like Sydney Opera House, Eiffel Tower, Burj ul Arab, Statue of Liberty, Seattle Space Needle, colosseum or Empire State building.

Not all of them are exceptionally tall (e.g. Taj Mahal, Opera House), not all of them are incredibly large (e.g. white house), and neither do they can be classified as the most beautifully designed buildings. So what really makes them iconic? It is probably, the unique design, concept, symbolic value and also the time when they were built, which makes them iconic.

It’s best that we explore these building on a case by case basis rather than discussing them as a group.

Eiffel Tower:

It’s hard to imagine, how a structure that was criticized in the harshest manner by the experts and artists of its time, and which was set to be dismantled soon after it has served its basic purpose (Exposition Universelle) is now regarded as the most recognized structure of the world. The tower, which was once considered a blot on the landscape of Paris, is now visited by millions and millions of people every year, because they think it is one of the most beautiful man made structure.

Sydney Opera House:

Sydney Opera House took almost 16 years in its completion and suffered numerous setbacks during the course of this time. With all kind of problems including skyrocketing cost, project getting politicized, changes made in the original design, Jorn Utzon (the original architect) resign, the building turned out to be worth all the efforts, once it was completed. Situated on the Sydney Harbor, this master piece has an outstanding design, no wonder Jorn Utzon won Pritzker Prize, the most celebrated award for any architecture.

Burj Ul Arab:

The most recent addition into the list of iconic buildings of the world is probably Burj Ul Arab in Dubai, the second tallest hotel in the world. Built entirely on 920 feet of reclaimed land, Burj Ul Arab is masterfully built to look like a sail of Arabian Dhow, simple yet elegant. Simplicity ends at the basic design though, as the interior gets as opulent as it can get in any world class hotel.

Empire State Building:

The Empire State building is one of the most adored landmarks in United States of America. Built in the era of Great Depression, it was completed in a remarkable time span of less than 2 years. It continued to be the world’s tallest building for many years and still holds 15th place on the list of world’s tallest buildings. It was also the first building having more than one hundred floors.

Park Towers: DIFC Real Estate

The Dubai International Financial Center (DIFC) is a financial free zone aiming to position Dubai as a universally recognized hub for institutional finance. The mission of the DIFC is to be a catalyst for regional economic growth, development and diversification by functioning as a globally recognized regional financial centre akin to the Wall Street in the US, the City of London in Europe and Hong Kong in the Asian economies. The DIFC, with its elaborate infrastructure, will become a City within a City, with over 65% of the total site landscaped.

The design of the towers was inspired by the evolution of Dubai, and by the undulating soft forms of the desert. This duality is expressed in the two vertical solid fins representing the rigid urban form reaching into the sky, from which the curved expressive soft form of the tower façade is suspended. A unique four to six level podium will allow for interconnection of buildings throughout the site. With world-class offices, serviced apartments, shopping malls, parks and restaurants, DIFC promises a real 24/7 lifestyle. The inclusion of a museum, an art gallery and performing arts centre will add to DIFC’s attraction as a resort destination.

Park Towers at DIFC offer panoramic views of the financial hub and provide the ultimate in exclusivity comfort. Poised to be the most sought after address in the world’s new financial centre, the two towers are designed to provide you with a luxurious yet contemporary architecture and distinct styling. The intelligent design of the towers ensures that every apartment has a wide balcony offering you the freedom to relax and enjoy the stunning views of the financial district, with its parks, cafes and entertainment facilities.

Park Towers offers city living beyond imagination. Situated on Park Boulevard, in the residential district of Dubai. DIFC is a state-of-the-art financial district with unique integration of buildings. Built around what will be a financial marketplace capable of matching those of London, New York and Hong Kong, Park Towers at DIFC have been planned and designed to become the highest standard in convenience for anyone seeking to live, work and enjoy their free time in one astonishing location. A business center offering everything you would expect from a 5 star hotel catering to all your business needs, all while in the comfort of your own home..

Park Towers features:

Health Club and Gymnasium
Spacious Steam and Sauna Room
Jacuzzi
Tennis Court and Barbecue Area
Temperature controlled pool
Barbecue area
Secured Parking bay for residents
24 hour security
Individual Post boxes
Professional Housekeeping
Panoramic views of Dubai
Banquet hall
Concierge desk with 24-hours service
World class Business Centre

Silverene Towers Dubai Marina

Completion June 2010: Silverene Towers is a double tower development located in Dubai Marina just meters from the water edge.

The towers are located midway across the marina and offer stunning views from from all angles. Don't forget that Silverene will be easily accessible from the Dubai Metro Red Line when open in September 2009.

With limited 1 bedroom units available from the incredible price of only 740,000 AED and 30% payment upon completion, Silverene Towers offers an unbeatable investment opportunity.

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