Real Estate & Property Investment News in United Arab Emirates from Propertyshowrooms.com

Dubai residential property 'will outperform commercial'

Wed, 8 Feb 2012 00:00:00 GMT

Residential property in Dubai will perform better than commercial assets, such as offices, over the course of 2012.

This is one of the predictions featured in an overview of the emirate's real estate market published by the Dubai Chronicle, which noted there was an increase in the number of transactions in the residential sector in the final quarter of 2011, compared to the previous three-month period.

While rents for offices in prime locations remained broadly stable during this timeframe, the secondary market struggled with oversupply and weakening demand, the publication stated.

According to the news provider, Dubai's residential real estate industry is in a better position because "stronger demand fundamentals are sustained by solid population growth".

Last month, Jones Lang LaSalle highlighted villa developments as more favourable investments than flats, noting the former are "generally expected to outperform apartments this year".

The firm was optimistic there will be an increase in the number of transactions completed in the United Arab Emirate's real estate market during 2012, with private investors and high net worth individuals expected to account for a larger proportion of purchases.

Abu Dhabi property deals rise in 2011

Fri, 27 Jan 2012 00:00:00 GMT

The value of real estate transactions completed in Abu Dhabi in 2011 reached AED 42.9 billion (£7.5 billion), authorities in the emirate have revealed.

Adel Hussain, a media consultant for the municipality, told Gulf News that this represents a five per cent increase compared to the volume of deals recorded in 2010.

Acting executive director of municipal services Awaidah Al Qubaisi told the publication there is now more positive sentiment surrounding property in Abu Dhabi than there was 12 months ago.

"There was increased investor confidence last year in the Abu Dhabi economy, which resulted in the high number of transactions. The municipality has also worked to simplify transaction processes," he stated.

Earlier this month, Jones Lang LaSalle predicted there will be a greater volume of property deals in the United Arab Emirates (UAE) in 2012 than in 2011, as a growing number of high net worth individuals and private investors are showing an interest in the UAE's residential market.

More transactions predicted in UAE property market

Wed, 25 Jan 2012 00:00:00 GMT

A rise in the number of real estate transactions carried out in the United Arab Emirates (UAE) has been predicted this year.

In its Top Trends for UAE Real Estate in 2012 report, Jones Lang LaSalle stated that the UAE property market will be driven forward by private investors and high net worth individuals.

The firm added the majority of purchases are likely to be in the residential sector, although cautioned there will be increasing polarisation between the highest quality assets and less desirable projects.

Craig Plumb, head of research at Jones Lang LaSalle in the Middle East and North Africa, commented: "Lower prices, more choice of higher quality product and its role as a regional safe haven will increase the attractiveness of the UAE market to both occupiers and investors in 2012."

Earlier this month, the REIDIN.com December property price index for Dubai and Abu Dhabi revealed the value of real estate in Dubai climbed by 1.09 per cent, compared to November, while in Abu Dhabi, prices dropped by 0.65 per cent during the same period.

Dubai property prices climb in December

Tue, 17 Jan 2012 00:00:00 GMT

The value of residential real estate in Dubai increased in December by 1.09 per cent, compared to the previous month, new figures show.

In the latest REIDIN.com index, the price of villas rose by 1.46 per cent during the final month of 2011, while apartments only saw their value climb by 0.6 per cent during the same timeframe.

However, neighbouring emirate Abu Dhabi experienced declining real estate values, with an overall fall of 0.65 per cent recorded between November and December last year.

Apartments took the biggest hit, with prices sliding by 0.99 per cent, while villas saw 0.55 per cent wiped off their value.

Earlier this month, Assetz suggested that "adventurous investors" may want to target Dubai property in 2012.

According to the organisation, there is a lack of supply of homes in completed developments, which has helped construction work pick up in a few "quality locations" in the emirate.

Dubai property a target for "adventurous investors"

Thu, 12 Jan 2012 00:00:00 GMT

Despite Dubai's construction and property markets experiencing significant difficulties during the recession in the United Arab Emirates (UAE), there are signs the industry is recovering.

This is according to Assetz, which noted construction on some projects in "quality locations" has resumed recently.

The firm pointed out prices and rents have started to climb as a result of a lack of supply of prime apartments in desirable areas, particularly in completed developments.

However, investing in property in Dubai is not for everyone, the organisation stressed.

"Adventurous investors may wish to look at this market, but will need to visit to gain local knowledge or deal with a good agent," the Assetz report stated.

Earlier this month, the Dubai Land Department reported a 20 per cent increase in the number of real estate transactions processed during 2011, compared with the previous year. Collectively, the deals were valued at 143 billion UAE dirhams (£25 billion).

Director general of the Land Department Sultan Butti bin Mejrin praised the local government for its efforts to return Dubai's real estate market to stability and growth.

Rise in Dubai property transactions positive for UAE real estate?

Fri, 6 Jan 2012 00:00:00 GMT

Investors interested in the UAE property market may take heart from new figures revealing a 20 per cent rise in Dubai real estate transaction values in 2011 compared with the previous year.

The Dubai land department said it recorded the completion of 35,297 deals - including mortgages and property sales - worth 143 billion UAE dirhams (£25 billion) last year and attributed this to local government's efforts to support the real estate market.

Mortgage activity increased by 12 per cent, with flat sales reaching 27 billion UAE dirhams and villa sales standing at 4 billion UAE dirhams.

According to the Dubai land department, the figures point to a return to normality for the Dubai real estate sector. Director-general Sultan Butti bin Mejrin predicted this will lead to a robust recovery in the near future.

Despite this, it is likely Dubai property prices will continue to fall, according to some experts. Speaking to the Wall Street Journal, Ronald Hinchey of Cluttons Dubai said while the sector experienced a certain level of stability last year with values rising in some prime areas, "prices are seen further softening over the next five years or more as the global economic decline continues and more units come online".

Dubai property prices climb marginally

Tue, 20 Dec 2011 00:00:00 GMT

There has been a small monthly increase in the value of residential real estate assets in Dubai, new figures show.

The latest data from REIDIN.com found that property prices climbed by 0.79 per cent between October and November this year.

However, villas in Dubai performed better than apartments, realising a 1.78 per cent rise in this period, as opposed to the 0.36 per cent fall in value experienced with flats.

In Abu Dhabi, however, the picture was less positive, with an overall decline in real estate values of 0.51 per cent recorded in the same timeframe.

Again, villas appear to hold more appeal than flats, with this kind of home seeing its prices drop by 0.10 per cent, in comparison with a 0.86 per cent slide for apartments.

Earlier this month, Asteco published research suggesting that the rental market in Dubai has stabilised, with fewer fluctuations recorded in the amount charged to tenants each month across both apartment and villa lettings.

Dubai rental market 'less volatile'

Thu, 15 Dec 2011 00:00:00 GMT

There has been a stabilisation in the rental market in Dubai, it has been revealed.

According to research conducted by real estate agency Asteco, the amount being charged for renting an apartment or villa in Dubai is holding steady in most areas of the city.

Meanwhile, the firm noted tenants are taking the opportunity to move to higher-quality accommodation while rents are slightly lower.

Chief executive officer at the organisation Elaine Jones commented: "Transaction levels are rising as job security and increased market confidence result in people seeking tenancy upgrades and home ownership."

Earlier in the month, some of Carillion's top executives expressed their confidence in an improvement in Dubai's property sector.

Heads of the UK-based construction firm, which is involved in several developments in the emirate, said in a conference call that they are "anticipating good growth in Dubai" and the company is on track to meet its revenue target over the coming three years, the National reported.

Carillion heads positive about UAE property sector

Tue, 13 Dec 2011 00:00:00 GMT

Some of the top executives at UK construction firm Carillion have expressed their confidence in the United Arab Emirates' (UAE's) real estate sector.

The National reported on a conference call between some of the company's heads, quoting chief operating officer Richard Howson as saying: "We're still anticipating good growth in Dubai and Abu Dhabi."

He added the organisation still believes it can "meet our objective of doubling our revenues between 2012 and 2015 to about £1 billion".

Chief executive officer at Carillion John McDonough told the publication that the firm feels concerns over the performance of Abu Dhabi's property market are "overcooked in a sense".

The business has a number of joint ventures with other companies in the UAE and elsewhere in the Middle East.

It is involved in the development of several projects in Dubai, many of which include residential properties, such as The Lofts high-rise apartment blocks and the Burj Dubai scheme.

'Marginal increase' for Dubai property prices

Fri, 18 Nov 2011 00:00:00 GMT

The value of residential real estate in Dubai increased marginally in October compared to September this year, new figures show.

According to the most recent data from REIDIN.com, property prices in Dubai climbed by an average of 0.41 per cent last month.

However, the villa market is performing much better than the apartment sector, with the former recording a 1.58 per cent rise in values during October.

By contrast, the amount paid for apartments in the emirate dropped by 0.78 per cent during the same period.

This is the sixth consecutive month that the price of apartments in Dubai has fallen, while villas have seen their stock rise consistently since April of this year.

Flats fared better in terms of rental income, seeing a 0.85 per cent increase in the amount tenants paid in October, while houses experienced a 1.51 per cent hike in rents.

Last month, a poll carried out by Reuters questioned experts about the prospects for Dubai's real estate sector.

Respondents predicted that property values in the emirate will fall by a further ten per cent, with the anticipated decline attributed to issues associated with oversupply, a lack of interest from investors and worries over the European debt crisis.

Dubai real estate 'held back by global problems'

Wed, 26 Oct 2011 00:00:00 GMT

Economic issues in the eurozone will stall a recovery in Dubai's property sector, a new survey has found.

In a poll conducted by Reuters, respondents predicted a 37 per cent chance that the emirate's real estate market will recover in 2012, rising to 70 per cent the following year.

Meanwhile, those questioned predicted that, on average, property prices in Dubai will drop by a further ten per cent before any improvement is noted.

The majority of respondents also stated that the eurozone debt crisis will further slow a recovery in the Middle Eastern region.

Speaking to the news provider, Harshit Oza, from Beltone Financial, commented: "Although we have witnessed better volumes and a slight increase in prices at few property transactions, the overall sector is still facing oversupply and lack of volumes/investor interest."

The most recent figures from REIDIN.com, published earlier this month, recorded a 1.48 per cent rise in property prices in Dubai during September, compared to August.

According to the organisation's findings, capital values among villas increased at a faster pace than for apartments.

Dubai property values rise, Abu Dhabi's fall

Mon, 17 Oct 2011 00:00:00 GMT

The value of residential real estate in Dubai has risen, the latest figures from REIDIN.com show, while properties in Abu Dhabi saw their prices fall in September, compared with August.

In Dubai, capital values across apartments and villas increased by an average of 1.48 per cent, month-on-month.

However, villa price rises outpaced the market for flats, with a jump of 1.69 per cent, in comparison to the 1.28 per cent hike experienced in the apartments sector.

But the story was not the same in nearby emirate Abu Dhabi, where average property values fell by 0.47 per cent in the same period.

Again, it was real estate in the villa category that was more robust, with this kind of dwelling seeing prices drop by just 0.05 per cent, compared to a 0.88 per cent decline for apartments.

In the recent Colliers International Global Investor Sentiment 2011 Survey, 40 per cent of Middle East investors stated that they feel pricing has gone too far, when the underlying market fundamentals are considered.

However, the remaining 60 per cent believed that there is room for growth within real estate markets in the region, or that values are at the correct level.

Maintenance fees 'causing issues' among Dubai property owners

Wed, 12 Oct 2011 00:00:00 GMT

The high maintenance charges levied by many developers for their apartment blocks is causing an increasing number of buyers to look elsewhere for a property in Dubai.

A report on Emirates 24/7 explained that the expense of maintenance fees is encouraging investors and owner-occupiers alike to look into the villa market as an alternative.

The publication noted that such costs are much lower with this kind of property, while there are still good returns of between six and seven per cent to be made on these real estate assets.

Rushiraj Mehta, from Legacy Real Estate, told the news provider: "The selling prices have jumped more than ten per cent due to this positive aspect. The same has happened to all villa communities."

He suggested one way to lower maintenance costs in apartment blocks could be to allow the residents to choose their own firm and manage it themselves.

There has been some good news for real estate owners in Dubai recently, with the REIDIN.com residential property price index recording a 0.5 per cent increase in values in August compared to July.

However, apartments registered a 0.3 per cent fall in value over the month. By contrast, villas achieved 1.34 per cent price growth.

Dubai office market expected to improve

Tue, 4 Oct 2011 00:00:00 GMT

An improvement is expected in the Dubai office market as vacancy rates remain low and there has been three consecutive quarters of growth.

This assertion was made by Matthew Green, who works for CB Richard Ellis Middle East, and it could mean that property in Dubai increases in price in the coming months.

Writing for Business Intelligence Middle East, Mr Green observed central business district (CBD) locations remain in demand. However, those outside this area are experiencing deflationary pressures at present.

"A similar situation is apparent in upcoming office locations such as JLT and Business Bay where a massive influx of new commercial supply is forcing rates downwards," he added.

The Global Competitiveness Report for 2011-12 placed the United Arab Emirates eighth out of 133 when it comes to the quality of the infrastructure.

It comes after Dubai Residential Property Price Index for August recorded a 0.5 per cent rise when compared to July.

Dubai property prices rise

Fri, 23 Sep 2011 00:00:00 GMT

A monthly increase has been recorded in the REIDIN.com residential property price index for Dubai, with real estate values up by 0.5 per cent in August over July.

The figures also revealed that villas are performing much better than apartments in the current market, with such assets seeing their worth increase by 1.34 per cent during the same period.

Meanwhile, apartment sales prices were down overall by 0.3 per cent, although REIDIN noted that flats measuring 50 sq m or less bucked the trend with a boost to values of a nominal 1.38 per cent.

According to the firm's data, real estate has experienced gradual monthly price rises since February of this year, with the greatest increase in this time coming in June, when values gained 0.87 per cent.

Earlier this week, the Dubai Land Department signed an agreement with Wasl Asset Management Group to try and kick-start stalled building projects.

The pair aim to offer investors the opportunity to buy or lease properties in partially completed developments, with the aim of using this finance to complete such schemes.

Dubai property sales rates predicted to drop

Wed, 7 Sep 2011 00:00:00 GMT

One property analyst is anticipating falling sales rates among real estate assets in Dubai over the coming months, predicting a decline of between ten and 15 per cent.

In an interview with Gulf News, head of research and consultancy at CB Richard Ellis (CBRE) Matthew Green commented that it is important to look at "the fractional nature of the market as it stands", which has resulted in certain developments experiencing price shifts but not the sector as a whole.

Mr Green stated: "Overall demand is still outweighed by existing supply and this situation is unlikely to change in the short term."

He added that economic difficulties in the US and Europe have not done the Dubai property market any favours.

Last month, CBRE published a report that revealed rents in several of the northern emirates have dropped significantly.

According to the organisation, rental rates for apartments in the region fell by an average of 18 per cent year-on-year, with Ajman and Umm Al Quwain among the hardest hit areas.

Rents fall in the north of the UAE

Tue, 23 Aug 2011 00:00:00 GMT

Rental values have dropped in the northern regions of the United Arab Emirates (UAE), it has been revealed.

Figures published by CB Richard Ellis (CBRE) showed that in the northern emirates, rents declined by 18 per cent year-on-year, with Ajman seeing the largest falls of 28 per cent.

Meanwhile, Umm al-Quwain saw its residential rents decline by 22 per cent, while the markets in Sharjah and Ras Al Khaimah also experienced drops.

There could be more downward pressure on the rents achieved by property in the UAE, the report noted, due to the amount of new stock entering the market.

Earlier this year, the UAE government announced it would be dedicating funds towards infrastructure improvements in the northern emirates to help cope with a growing population.

In June, new visa rules were unveiled for foreigners who own real estate in the UAE, with the length of visas extended from six months to three years. Officials hoped this would help stimulate investment in its property sector.

Investors 'have confidence' in UAE property

Wed, 17 Aug 2011 00:00:00 GMT

The United Arab Emirates's (UAE's) property market has been boosted by an announcement from the International Monetary Fund, which upgraded the projected growth figures for the Gulf Region.

As a result of the improving economic outlook, investors have become more confident about the state of the UAE real estate sector, the International Business Times reported.

Senior vice-president of DAMAC Properties Niall McLoughlin told the publication that Dubai in particular has seen investors come back to the market, describing it as being "more stable and sustainable".

"Gulf investors are flooding back into Dubai and the broader UAE's property sectors on signs that the market has bottomed out and is already well advanced with the recovery phase," he stated.

Last month, Jones Lang LaSalle released its Dubai Real Estate Market Overview for the second quarter of the year and revealed that while the hospitality and retail sectors had made a recovery, office and residential property was lagging behind.

However, the firm did note that the emirate's real estate industry was showing signs of stabilising.

Experts 'unsure' over whether new Dubai visa rules will boost property sector

Wed, 3 Aug 2011 00:00:00 GMT

Changes to legislation in the United Arab Emirates (UAE) regarding visas for foreign homeowners may not have the desired effect on the country's property market, some experts have claimed.

Jesse Downs, director at Jones Lang LaSalle MENA, told ArabianBusiness.com that because any real estate investment must be greater than one million UAE dirhams (£166,859) in order to qualify for the three-year visa, buyers may be unwilling to pay for a higher value property.

"The crux of the issue is whether or not buyers will actually pay a premium just for the visa. This is unlikely because buyers are value conscious, especially now," she stated.

However, Nick Maclean, managing director of CB Richard Ellis Middle East, disagreed, telling the news provider that he believes the comfort afforded by a three-year residency will encourage buyers to hand over some extra cash.

Research published by Jones Lang LaSalle last month looking at the performance of Dubai's real estate sector during the second quarter of the year found that the majority of properties experienced price and rental declines, with only the higher-end, established villa locations seeing a marginal increase.

Dubai residential real estate market 'stabilising'

Thu, 21 Jul 2011 00:00:00 GMT

The residential property market in Dubai is stabilising, according to a report published by Cluttons.

Although the firm revealed that rents for real estate in the sector are still falling, the rate of decline has dropped significantly during the second quarter of the year, compared to the first three months of 2011.

Indeed, high-end villas are bucking the trend, the data showed, with rents in some areas increasing by between 1.5 and three per cent during the same period.

Cluttons also noted that the final two quarters of the year could see further improvement for Dubai's real estate, as demand from Bahrain and Egypt has an impact on the industry.

Earlier this month, Floyd Pinto, manager of customer care at Better Homes, told Emirates 24/7 that his firm had noted an increase in Indian investors entering the property market in the UAE.

He stated that enquiries from India have increased, which could result in a rise in transactions as buyers look to take advantage of the competitive pricing available on homes.

More UAE properties to be made available at a discount?

Thu, 14 Jul 2011 00:00:00 GMT

Property investors keen to grab a bargain abroad could look to developments in the real estate market in the UAE, as sellers in Dubai are being advised to offload their assets at a discount.

Jesse Downs, director of management consulting at Jones Lang LaSalle Middle East and North Africa, told Emirates24/7 that the market needs to be prompted into action and has encouraged vendors to sell at a loss.

"We want to see more of these offers because it shows that the primary market is becoming more realistic and, assuming discounts are sufficient, will spark transactions," the expert explained.

The news could see savvy property investors able to take advantage of the situation as purchasing now could help the housing market in the country recover, providing potential returns if it does.

Jones Lang LaSalle recently reported that the real estate market in Dubai is already showing signs of stabilising following the sales slump experienced in 2011.

The hospitality and retail sectors in particular saw sound growth in the second quarter, the company said.

Rents for Abu Dhabi properties fall

Fri, 8 Jul 2011 00:00:00 GMT

Residential properties in Abu Dhabi experienced a decline in rent during the second quarter of the year, new research has shown.

Property management firm ASTECO published a report, which noted that rents dropped nine per cent in the three months between March and June.

Oversupply and a lack of new tenants entering the market are putting downward pressure on prices, the study found.

The company also stressed that this means renters will be looking for new homes that offer better value for money than their current accommodation.

Last month, Bloomberg reported that the decision by the United Arab Emirates (UAE) government to extend the visas offered to foreign investors could have an impact on the real estate sector.

Citigroup analyst Farouk Soussa told the news provider that it could "significantly boost demand" for residential properties in the UAE. However, he added that the completion of new developments over the coming years could reduce the overall positive effect of the visa changes.

Property values on Dubai's Palm drop

Thu, 7 Jul 2011 00:00:00 GMT

The value of residential properties on Dubai's Jumeirah Palm have fallen dramatically since their peak, new research has revealed.

Arabian Business released data which shows that the average price per square foot for apartments on the complex currently stands at 650 UAE dirhams (£110.4).

Real estate located on its shoreline has taken a hit of almost 70 per cent in some cases, with the lowest listed price for such apartments standing at 1.7 million UAE dirhams, the organisation noted.

At the end of June the UAE government announced new rules for property investors who own real estate worth more than one million UAE dirhams. Previously foreign buyers were only eligible for a six-month visa, now they will be issued with a three-month multiple-entry visa.

Chairman of Dubai's Emaar Properties Mohammed Alabaar commented at the time that the move will "significantly enhance investor confidence and drive the growth of the country's property sector".

Indian investors eyeing Dubai property

Wed, 6 Jul 2011 00:00:00 GMT

Indian investors are said to be eyeing Dubai property after big rises in Mumbai and Delhi have made the emirate an attractive prospect.

Steep corrections in Dubai have led to prices stabilising in prime regions, Emirates 24 reports, with experts suggesting Indian speculators will take advantage of this trend.

Floyd Pinto, manager of customer care at Better Homes, told the newspaper that Indian buyers already constitute the largest group in real estate purchases in Dubai.

"The enquiries have gone up and we could expect a rise in transactions," he remarked. "There are enquiries typically for every property from low range to high end."

According to Mr Pinto, those looking to purchase in bulk are asking after top-quality properties at mid-range prices.

Chairman of Emaar Properties Mohammed Alabbar recently said that the United Arab Emirate government's decision to extend the validity of visas for overseas real estate investors should boost confidence in the sector.

UAE extends visas for property investors

Fri, 1 Jul 2011 00:00:00 GMT

The United Arab Emirates (UAE) has taken the decision to extend the length of property investors' visas to three years - up from six months - in a bid to boost the nation's real estate market.

Chairman of one of the region's largest development companies Emaar Properties Mohammed Alabbar stated that the visa extensions will "significantly enhance investor confidence and drive the growth of the country's property sector".

Meanwhile, Citigroup suggested that while the move could aid residential real estate in the UAE, it is likely to be restrained by an oversupply in the market.

Rather than having to renew their visas every six months, foreign investors will now be entitled to a three-year multiple-entry visa - as long as they own property worth more than one million UAE dirhams (£169,040).

The UAE was among the biggest fallers in the Knight Frank Global House Price Index Q1 2011 published earlier this month. According to the organisation, residential property values in the nation dropped by 8.2 per cent year-on-year.

Abu Dhabi developer to concentrate on existing projects

Fri, 24 Jun 2011 00:00:00 GMT

One of Abu Dhabi's largest developers has stated that it intends to focus on completing existing projects, with 7,000 new units expected to be delivered by 2014.

Gurjit Singh, chief operating officer of Sorouh Real Estate, spoke at the Reuters Real Estate and Infrastructure Summit yesterday (June 22nd) and stressed that his company's focus is firmly on its home market.

The organisation's ongoing projects are worth around 13 billion UAE dirhams (£2.21 billion).

Residential rents and prices are likely to contract further over the next six to 12 months, Mr Singh predicted, adding that he is anticipating falls in the region of ten per cent due to oversupply in the market.

Earlier this month, Emirates 24/7 published details from a Nomura report, which stated that property values in Abu Dhabi are expected to stabilise over the coming months.

Chet Riley, author of the study, told the news provider that the global investment bank anticipates residential prices will "hold rather than fold over the next six months".

Abu Dhabi offers the 'ultimate shopping experience'

Wed, 25 May 2011 00:00:00 GMT

Demand for property in the UAE could be set to rise following the comments of the Abu Dhabi Tourism Authority.

Investors and holidaymakers looking for the ultimate shopping experience have been told that they will be hard pressed to find a better destination than the emirate.

Lawrence Franklin, strategy and policy director at the tourism body, explained that the impressively decorated shopping malls "make for an unbeatable shopping expedition".

"Abu Dhabi has a cosmopolitan city with urban architecture, green gardens and fountains," Mr Franklin said.

"It hosts a range of business-cum-leisure facilities, from a state-of-the-art convention centre and luxurious hotels, to spas, designer golf courses, an arts complex and heritage sites."

Meanwhile, Etihad, the national airline of the emirate, has launched a promotional campaign offering free stopovers at selected luxury hotels in downtown Abu Dhabi, Yas Island or Dubai.

The news could prompt an increase in the number of individuals looking to purchase property in the UAE.

Dubai looks to increase real estate transparency

Thu, 5 May 2011 00:00:00 GMT

Demand for property in Dubai could be set to rise after three regulatory bodies announced plans to increase transparency in the emirate.

The Hawkamah Institute for Corporate Governance, Real Estate Regulatory Agency and the Dubai Real Estate Institute all signed an agreement of understanding relating to the proposals.

They claim that improving and strengthening corporate governance practices is one of the primary goals to protecting owners' property rights.

In addition, the initiative aims to increase investor and tenant confidence in the real estate sector.

"The real estate companies, property developers and valuation agencies need to become more transparent through better reporting of transactions and prices," Nasser Saidi, executive director of Hawkamah told Arabian Business.

He added that the landmark initiative would produce the first ever real estate corporate governance code in the region.

It is hoped that by introducing more transparency into the sector confidence will return and foreign and local buyers will return to the markets.

Dubai property market is 'stabilising'

Mon, 18 Apr 2011 00:00:00 GMT

Demand for property in the UAE could be set to rise following a recent report from a leading real estate firm in the region.

Research relating to the first three months of 2011 by Asteco has revealed that, for the first time in two years, the Dubai property market has stabilised.

According to the firm, apartment rentals averaged a decline of just two per cent over the three-month period.

However, despite the slowdown in average rents there were regional differences, with drops of as large as five and seven per cent in some areas.

Elaine Jones, chief executive officer of Asteco Property Management, noted that movements within the market were being driven by a desire by buyers to attain good quality, value for money stock.

"The rental market stabilised in certain areas, with a downward trend in others, albeit at a lower rate. This is attributed to the pressure of new stock on the already oversupplied market, especially for apartments and offices," she said.

It follows a recent report by CB Richard Ellis which revealed that Dubai is now considered one of the top shopping destinations in the world.

Dubai is 'best retail destination in the world'

Thu, 14 Apr 2011 00:00:00 GMT

Demand for property in Dubai could be set to rise after a new report labelled it as one of the best shopping destinations in the world.

Research conducted by CB Richard Ellis (CBRE) has revealed that the emirate is now on a par with London as the world's premier retail city.

The property consultancy noted that more than half (56 per cent) of all the top international retail brands have a presence within Dubai.

CBRE claims that the growth of the emirate as a shopping destination has been fuelled by limited opportunities in traditional markets and the emergence of a wealthy, well-educated and well-travelled population.

Michael Leighton, senior retail Consultant for CBRE Middle East, said: "Historically, Dubai has been the entry city to the Middle East, but now retailers are looking to replicate their success in other Middle Eastern countries with a similar consumer base."

Indeed, since 2006 an additional 1.2 million square metres of retail space has entered the Dubai market.

10,000 homes to enter UAE market this year

Tue, 12 Apr 2011 00:00:00 GMT

Individuals looking to purchase property in the UAE could be interested in the latest comments from an official in the region.

Sultan Butt bin Majran, director general of the Dubai Land Department, has denied rumours that the real estate market is to be flooded with tens of thousands of new homes.

According to authorities in the region, only 10,000 new houses would be completed this year.

"News that between 40,000 and 50,000 housing units would be ready in 2011 are not correct," the sultan said.

"We expect about 10,000 houses to enter the market this year but they will not put any pressure because the market is able to absorb them given the ongoing recovery in the property sector."

Meanwhile, the latest report from Cluttons has forecast that an increase in rental and sales activity in the second quarter of 2011 will lift the UAE property market.

The release of a number of delayed projects in the emirate is expected to be a primary driver behind the demand, the firm added.

Dubai property market sees $33.5bn worth of transactions

Mon, 21 Mar 2011 00:00:00 GMT

Despite the recent economic crisis, the level of transactions in the Dubai property market reached $33.5 billion during 2010, new figures have shown.

The news may encourage more people to invest in property in the UAE, with it suggesting that confidence in the region is increasing.

Indeed, according to head of the emirate's Land Department, Sultan Butti Bin Mejrin, the numbers were "promising, considering the crisis".

Since their peak which occurred in mid-2008, real estate values in Dubai have slumped by 62 per cent after the global credit crisis saw speculative demand fall.

However, the latest figures from Deutsche Bank show that real estate prices in Dubai fell 1.7 per cent in February.

The organisation claimed that the emirate's property market is still not back on track and could see declines of up to 30 per cent in next two years.

"We do not see any improvement in fundamentals that could trigger a recovery," the bank said in its report.

Growing number of investors looking at Dubai

Fri, 11 Mar 2011 00:00:00 GMT

The number of overseas investors active in the UAE property market is starting to rise, as the economic situation continues to improve.

This is according to Landmark Properties, which noted that those looking to buy property in the emirates are becoming increasingly confident about the long-term growth prospects on offer there.

"From the end of last year onwards, we have seen a definite increase in interest from overseas clients," Michael Michael, director of sales at the firm, said.

He explained that while the majority of the investors were from countries within the GCC or Eastern Europe, there are others from further afield.

"[This indicates] a growing sentiment that Dubai's property market is now offering investors greater value for money," Mr Michael added.

According to the property firm, overseas clients are increasingly looking for different types of property, across a variety of sectors. The company forecast that industrial property will be the most popular among clients as a result of the quantity of quality stock in Dubai and the emirate's good trade and business prospects.

Political instability likely to boost UAE property investment

Tue, 1 Mar 2011 00:00:00 GMT

Political unrest and instability in nations such as Tunisia and Libya is expected to act as a boost to the property market in the UAE.

The chief investment officer and acting general manager of private banking at Emirates NBD has commented on how situations in MENA countries will positively impact property investment in Dubai.

Gary Dugan explained: "The premium segment of Dubai's property sector is likely to get a boost from capital inflows from some of the countries that are facing political turmoil in the region."

The expert forecast that those with assets in the MENA region are increasingly moving capital towards the emirate, which is recognised as the most secure market in the region.

"Local equities still prove attractive, but investors should wait before buying emerging market equities, which face near-term challenges and equity prices in general are no longer as low as they were. Investors are advised to buy global developed market equities but with care," Mr Dugan added.

UAE house prices to continue to fall

Thu, 3 Feb 2011 00:00:00 GMT

House prices in Dubai will continue to fall this year, albeit at a slower pace then previously, Jones Lang LaSalle has forecast.

The news may interest those looking to buy property in the UAE, with real estate values unlikely to bottom out in the short-term.

Over the course of 2010, the property consultancy revealed that house prices in Dubai fell by 12 per cent, while in 2009 they dropped by 25 per cent compared to the previous year.

And any expected pick-up in activity and transactions in the country in 2011 is expected to be offset by a continued oversupply of housing in the city, the report added.

"25,000 new units are expected to come online in Dubai this year, compared with 7,800 last year," Jones Lang LaSalle said.

Craig Plumb, the head of research for Jones Lang LaSalles's Dubai office, commented: "The key to transaction levels is going to be liquidity and the availability of mortgages. Clearly we're getting closer to the bottom, but in our view we are not at the bottom."

New high-rises set to bolster UAE property market

Sat, 29 Jan 2011 00:00:00 GMT

Property investment in the UAE is likely to get a boost from the significant number of new residential high-rises that are due to open at Abu Dhabi's Reem Island this year, it has been suggested.

Simon Gray, regional head at property firm Chesterton International, argued that the growth of new residential stock will help to address the supply problems in Abu Dhabi's property market which has seen professionals working in the emirate move their homes to Dubai where rent is cheaper.

"As these developments [on Reem Island] will be the newest in the market, landlords will be keen to attract tenants, especially as the surrounding area is not yet developed with support facilities and amenities," he told Gulf News.

"I believe that as a general average, rentals will be ten to 25 per cent lower than the average in the main island."

The comments come after Nicholas Marr, chief executive of Homesgofast.com, recently claimed that he expects investor sentiment in Dubai to rise over the coming 12 months.

Confidence to grow in UAE property market

Mon, 17 Jan 2011 00:00:00 GMT

Property investors have been advised to buy homes in the UAE now, before prices start to climb once again.

Nicholas Marr, chief executive of Homesgofast.com, has claimed that knowledgeable buyers are likely to already be looking at what is available on the market.

"Savvy investors all know that profits are made not only on the sale but on the purchase and with Dubai property prices at an all time low, 2011 could be good for the early worm investors seeking good returns as the market bounces back," he said,

The news follows statistics recently-released by Asteco which show that the average price of apartments in Dubai fell by another two per cent during the fourth quarter of 2010.

However, Mr Marr is confident about the long-term prospects for the market, stating that he expects investor sentiment in Dubai to rise over the coming 12 months.

"The Dubai credit risk has eased and investors should be happy to see that the Dubai government has taken equity stakes in Dubai World further boosting the project," he added.

Rental rates spiralling downwards in UAE

Thu, 13 Jan 2011 00:00:00 GMT

Rental rates in the UAE have entered a rapid rate of decline, with two real estate reports highlighting the effect that oversupply is having on the market.

The latest report from property management company Asteco has suggested that rents and leases in Abu Dhabi were down as much as seven per cent during the last three months of the year - adding that further falls are expected in 2011.

Elsewhere, the latest report from real estate consultants Cluttons shows that average rental prices fell by as much as 16 per cent at the lower end of the market, while those in other areas were down by eight per cent.

As a result, those looking to buy property in the UAE and prospective tenants are expected to have a wide range of choices in 2011.

According to Elaine Jones, chief executive of Asteco, the arrival of a number of new developments to the market will contribute towards further downward pressure being placed on resale and rental rates in the emirate.

"These delays are hindering market confidence which waits in anticipation for the release of stock," she added.

Property set to perform strongly in the UAE next year

Tue, 4 Jan 2011 00:00:00 GMT

Individuals looking to purchase real estate in the UAE will be encouraged to learn that the property market in Dubai is on track for revival in 2011.

According to the chief executive officer of Damac, one of the emirates leading developers, the sector is likely to be one of the best-performing in the New Year.

The company cited data from Saudi Arabia, Lebanon and Egypt, which suggested that their property sectors would see double digit growth.

"There is still a lot of cash on the sidelines, but there are opportunity costs to keeping liquid cash," Damac managing director Ziad El Chaar said.

"Investors will now be weighing up their options about where to invest next year and property is shaping up to be one of the best performing sectors."

However, other market analysts do not share the same optimism for the future of the Dubai property market.

Paul Richard, associate director at Cluttons in Dubai, told Bloomberg news that there is "no parity between supply and demand", adding that he expected the market to remain in decline for the coming two years.

UAE property buyers to benefit from reduced fees?

Wed, 22 Dec 2010 00:00:00 GMT

People investing in UAE real estate could benefit from lower costs following the announcement of a review into fees for municipal services in Dubai.

Earlier this year, the emirate's Dubai Municipality (DM) announced plans to revise the system for collecting fees from homeowners for providing municipal services.

This included a decision to collect five per cent of rental value of properties from all residential units in the emirate irrespective of their status of being leased or owned.

However, homeowners have been left outraged as they claim it is a duplication of the fee they already pay to developers for maintaining buildings and surrounding areas.

This has led to the Dubai Executive Council setting up a committee for reviewing the DM's plans.

The Council has appointed Abdulrahman Al Saleh, director general of the Department of Finance in Dubai, to head the committee that will investigate the complaints from homeowners.

It was recently predicted by real estate experts that residential property prices in Dubai, already on a downward trend, could continue to fall for another two years.

Prices in the UAE could fall for 'another two years'

Mon, 20 Dec 2010 00:00:00 GMT

Individuals looking to purchase property in the UAE may be interested in the recent comments of analysts in the region.

According to real estate experts, residential prices in Dubai could continue to plummet for another two years.

The emirate has seen its property market hit rock bottom with prices in some locations dropping by 60 per cent since the peaks of 2008.

Values may fall as much as another 20 per cent by the end of 2012, according to a new assessment from property broker Landmark Advisory if new units are built as planned.

Currently, about 48,000 new homes are due to come on to the market over the course of the coming two years, Jesse Downs, director of research at Landmark, said.

She explained that the influx of new properties will contribute to a reduction in rents, which will in turn push values lower.

"Rents are very important because occupier demand leads investor demand,’ she added.

Rents falling in UAE

Fri, 5 Nov 2010 00:00:00 GMT

Individuals interested in buying real estate in the UAE may be interested in the latest data from a real estate firm in the country.

According to Landmark Advisory, oversupply in the market has led to a number of landlords of new units undercutting market rates.

This has meant that rents in the region have fallen by 38 per cent in some of the emirate's most popular residential areas.

"We estimate that average vacancy rates in Dubai are currently 15 to 18 per cent but will increase to 19 to 24 per cent by 2012," Jesse Downs, director of research and advisory at the company, explained.

"Even considering the Abu Dhabi commuter demand, it is clear that average rents in Dubai will continue on a downward trajectory."

Indeed, she confirmed that some developers and landlords are drastically reducing rents by up to 20 to 30 per cent below current market rates in order to achieve higher occupancy.

Individuals interested in buying real estate in the UAE may be interested in the latest data from a real estate firm in the country.

According to Landmark Advisory, oversupply in the market has led to a number of landlords of new units undercutting market rates.

This has meant that rents in the region have fallen by 38 per cent in some of the emirate's most popular residential areas.

"We estimate that average vacancy rates in Dubai are currently 15 to 18 per cent but will increase to 19 to 24 per cent by 2012," Jesse Downs, director of research and advisory at the company, explained.

"Even considering the Abu Dhabi commuter demand, it is clear that average rents in Dubai will continue on a downward trajectory."

Indeed, she confirmed that some developers and landlords are drastically reducing rents by up to 20 to 30 per cent below current market rates in order to achieve higher occupancy.

Banks remain selective in their lending in the UAE

Sat, 23 Oct 2010 00:00:00 GMT

Banks in the UAE remain selective in their lending and as a result it is unlikely that many large-scale real estate projects will get off the ground in the short-term.

This is the latest news to come out of the Reuters Middle East Investment Summit, with the once booming property market in Dubai the hardest hit by bank’s tightening of their lending criteria.

“Banks are still reluctant to lend to real estate. We see a slow return to very selective mortgage lending and where we see it, it is lending where there is very limited risk,” said Sameer al-Ansari, chief executive at investment bank Shuaa Capital.

“Major real estate lending by the banks, I don’t see that coming.”

Individuals looking to buy property in the UAE may be interested to learn that real estate prices in Dubai have fallen by 60 per cent when compared to their 2008 peak, primarily as a result of massive oversupply in the market.

Measures to increase transparency introduced in the UAE

Sat, 16 Oct 2010 00:00:00 GMT

Individuals with property in the UAE have welcomed the introduction of new measures designed to improve transparency in the market.

The implementation of real estate associations will help to improve both value and services in the country’s property market, a survey by Dubai-based Real Opinions has found.

However, while the measures will have a number of positive impacts, one in three home owners questioned believe that they will ultimately have little effect on the real estate industry as a whole.

“These results are a strong endorsement of owner associations but this is just the beginning of the challenge they face with the transition from developers to actually prove these beliefs,” Jim O’Hare, the chief executive of Place Community Managers who commissioned the study, said.

Indeed, according to the survey, just 23 per cent of people believe that the measures will encourage others to buy property in the UAE, while 46 per cent remained unsure either way.

Vacancies in the UAE property market to rise

Tue, 5 Oct 2010 00:00:00 GMT

Commercial property values in the UAE are unlikely to return to sustainable levels before 2013, a new report has suggested.

Jones Lang LaSalle has claimed that the situation in Dubai can draw strong parallels with central business districts (CBDs) in emerging markets.

The real estate consultant explains that these CBDs often outperform other commercial areas, those looking for property in the country may be interested to learn.

Graham Coutts, head of management services at Jones Lang LaSalle, said that the experience of these cities shows that markets often go through periods of excess.

“Dubai currently has one of the highest levels of office space per person in the world. This reflects the regional and global role of Dubai but does suggest that the level of supply has increased ahead of the maturity of the market,” he said.

Currently, office vacancies in Dubai’s financial centre could hit 40 per cent over the forthcoming years as oversupply takes hold of the emirates already battered market.

Travel links between UK and UAE boosted

Fri, 3 Sep 2010 00:00:00 GMT

Emirates has boosted travel links between the UK and the United Arab Emirates (UAE) with the launch of its new route from Manchester to Dubai.

The superjumbo will fly between the two locations twice daily and has already broken the record for the most number of passengers to leave the site on a single flight when it took off on September 1st.

Improved travel links will be welcome news for people with property in the UAE.

"This is a historic moment for Emirates as we bring our 21st century superjumbo to the north-west, 20 years after our first flight from the region," explained executive vice-chairman Maurice Flanagan.

"Our Manchester service has been an incredible success story, and we're delighted to be opening the next chapter today."

Earlier this week, figures from Dubai International highlighted that the airport has been receiving a record number of passengers.

In July, some 4.3 million passengers were handled by the airport, compared with 3.7 in July 2009.

Travel in the UAE 'picking up'

Fri, 3 Sep 2010 00:00:00 GMT

Travel in the United Arab Emirates (UAE) has picked up, according to latest figures.

Investors with property in the UAE will be pleased to hear that recent figures from the Abu Dhabi Tourism Authority show the number of people visiting the Emirate jumped 16 per cent in July compared with the same month the previous year.

July was the ninth consecutive month of double digit guest growth for the Emirates.

For the first time, international market growth of 29 per cent outstripped domestic growth of four per cent.

Commenting on the findings, Nadine Hallak, a spokesperson for Cheapflights.co.uk, said that travel to the UAE had dropped during Dubai's recession, however, things are now picking up.

She added that high-profile events such as the launch of Formula One in Abu Dhabi and the fact that the recent Sex and the City film was set in the Emirate have boosted its profile with holidaymakers.

Prices uncertain on UAE property

Sat, 24 Jul 2010 00:00:00 GMT

A lack of activity within the Dubai property market is making it impossible to assess exactly how low prices have dropped.

Writing for Bloomberg. Zainab Fattah interviewed a number of analysts and experts on the property market in Dubai on the matter.

The lack of foreclosure auctions and sales means potential purchasers do not have enough data to see what properties are worth in the region.
In addition, the Dubai Land Department's data is also too patchy and incomplete to offer a proper idea of prices.

Prices are known to have fallen since their 2008 peak but Craig Plumb of Jones Lang LaSalle said that until there are more foreclosures, "we are not going to see the bottom of the market".

The National Newspaper, however, has reported that the prospects for the UAE are improving.

A debt restructuring plan has been devised for bankers and the developer Emaar Properties recorded a quarterly profit increase.

The newspaper noted that property sales had suffered as a result of the recession and prices may still continue to fall before recovering.

UAE property market attracts British buyers, but fear still remains

Tue, 20 Jul 2010 00:00:00 GMT

British buyers are beginning to rekindle their interest in the UAE property market, it has been suggested.

Terry Hobbs, media manager at propertyshowrooms.com, has claimed that, although the levels of interest are nowhere near their peak of a few years ago, buyers are beginning to return to the sector.

"We are still not seeing the same levels of traffic as we were a year and a half or two years ago - nowhere near as much. I think there is still quite a bit of fear there," Mr Hobbs confirmed.

His comments come after research from Asteco found that both property prices and apartment rental rates have fallen in the past 18 months.

According to the organisation, rents fell by between seven and 15 per cent during the second quarter of 2010, compared to the first three months of the year.

However, the latest report from CB Richard Ellis has suggested that there are positive signs for the year ahead, with tourism rising and slight reductions in average lease rates.

Buyer's market appearing in the UAE

Fri, 9 Jul 2010 00:00:00 GMT

Individuals looking to buy property in the UAE will be heading into a buyer's market, with falling prices and oversupply driving demand from prospective purchasers.

The latest report from property consultant Cluttons has revealed that investors are increasingly finding themselves in a favourable position when buying real estate in the emirate.

In particular, a drop in value of property in Dubai is likely to lead to an increase in demand for homes in the region.

Steve Morgan, head of Cluttons UAE, explained that buyers now had the ability to negotiate with vendors.

"Ongoing price reductions have opened up the Dubai property market for a wider selection of potential purchasers, who are becoming increasingly discerning in their property search," he added.

"Whereas once the landlord or seller held a strong position, we now see buyers negotiating with landlords to bring prices well below the asking price."

The government has introduced a new guarantee for investors in the region, which aims to ensure projects are completed and finance secured.