Dubai - Great Appetite for Global Property Investors

I guess the time has come for the top global players to start looking at the potential of commercial and office space in Dubai. We now see the likes of The American International Group buying two office blocks in the Emaar Business Park, opposite the Dubai Internet City. It's the first big investment by a US financial institution in Dubai property. And the UK's giant international property consultants Strutt & Parker announced their debut in Dubai, holding a conference for investors.As the property transactions In the UK are declining, Strutt & Parker faces a much tougher market out there this year and they were planning to open in Dubai for sometimes and are now doing so in association with local investment bank Jaspar Capital, hoping to capitalize on a big increase in interest from its major institutional clients in Middle Eastern real estate.
If you were to analyze this move by those investors to the market of Dubai then you can only think of two things, either that their usual market are doing extremely bad or that the Dubai market is maturing and is able to attract the giants as they can see the real growth and potential. When other markets are facing the slump, Dubai is booming. For sure that makes a lot of sense who are deciding to invest.

Time to Sell your Home

Well winter is finally here and with it has come the high season for home sales in Dubai. Winter is the best time of the year for selling a home, the cool weather gives you a chance to showcase your home properly. There are a number of things that any home seller can do to make their home more attractive to buyers during this period.
First impressions are everything in real estate and if your home does not impress buyers from their first glance then something must be changed and quickly! Your home presents a package to buyers and much of that package is the visual impact of your home. It is extremely difficult to sell an ugly home unless you find one of those golden home investors who are looking to sell it on for a premium. Many people will make a decision when first seeing a home and place the home into a "possible" or a "no-way" category. No need to mention which side of that equation you need to be on.
Staging - Staging is much more than cleaning and organizing things in the home. It is more about creating a marketable and attractive product that will appeal to buyers on many levels. Cleanliness, organization, artistic value, color and space are all important elements to this situation. Home staging has become one of the most important elements in the sale.
Comfort - When showing a home the idea is to get people to stay as long as possible and explore every aspect of the home.

Quick tips to sell your home

• Remove Clutter
• Make the House Sparkle
• Rearrange Bedroom Closets and Kitchen Cabin
• Remove personal photographs and family heirlooms
• Make Minor Repairs
• Remove access furniture (homes look better with less furniture)
• Paint - use neutral colours (white or off white)

Where does the future of Dubai lie (Singapore or Hong Kong)?

The EFG Herms report on Dubai Property was published last month establishing 2007 a year of transition for the local market here. A gentle decline pattern observed in Singapore from 2000-03 was highlighted as being the likely scenario for future here. Hong Kong saw a huge boom in property sector pre British handover in1997 which rose to a peak position in 1998. Since then the prices fell down hugely by 70 percent till 2003 before they started their recovery coarse. By the end of 2006 the property prices in Hong Kong were greatly recovered and are expected to rise further by 20 percent in 2007. Therefore the investors in Hong Kong followed an unstable path till now.The property prices in Singapore went up by 37 percent in two years after 1998. After millennium these prices fell by 30 percent till 2003 but have improved by 10 percent since then.
The Scenario in Singapore:
According to EFG Herms the present day demand and supply situation in Dubai is much like that of Singapore in 2000. With the Launch of $140 billion cityscape project, it looks parallel to the over development situation that existed in Singapore. However the EFG does not negate the potential corrections in Dubai Property. The Hong Kong scenario would be an extreme possibility, but as Hong Kong experienced, great periods can be followed by tough times!
Hong Kong’s Trouble:
The Asian financial crisis wreaked Hong Kong during 1997-98; later, the 2000 dotcom crash hit hard on local investors; and more blows were given to the economy by Acute Respiratory Syndrome crisis in 2003. However Hong Kong proved to be a strong regional hub that recovered from these situations paving way for some of world’s highest real estate prices. Although it is hard to imagine Dubai share the same rounds of misfortunes, but it is still strong enough.
The most important point that EFG Herms raises is whether the property schemes would actually materialize or not. Many projects scheduled to be completed are worked upon by small developers and not government or quasi-government. The Report figures that many projects might just not reach completion stage due to inexperience and small size of developers. Therefore the market adjustment for supply in a slowdown situation could by much larger than estimated.

Escrow accounts compulsory for all Dubai off plan developments

Dubai has issued law number 8 which governs how payments made by buyers into off plan project be made available to the developers, it will only be released on the order of the Dubai Land Department.Dubai’s Land Department governing trust account conditions for real estate developments. The trust account service will ensure that payments made by investors towards “off plan” property purchases are protected until residential units are registered in the buyer’s name. Property developers across Dubai now have to hold a guarantee account with one of three financial institutions that are in partnership with Dubai’s Land Department. Money paid by buyers or financiers towards properties will be deposited into a trust account with the respective institutions. Developers can then apply for the money to be released by the trust account manager by producing a certificate from a consultant certifying that the project has reached an agreed stage.

National Bank of Dubai expands mortgage lending to UK customers

NBD partners with leading mortgage adviser John Charcol to target UK residents purchasing property in UAE
Press Release – Dubai, UAE, 5 July 2007
National Bank of Dubai (NBD) has today announced a tie up with the leading United Kingdom based mortgage adviser, John Charcol, to provide finance to UK residents interested in purchasing residential properties in UAE.
NBD is one of Dubai’s leading banks and among the top mortgage finance providers in the UAE. The mutually exclusive tie up with John Charcol will not only provide mortgage finance to UK residents investing in UAE but will also provide re-financing to UK residents who have already invested in the Dubai residential property market. On offer are mortgages for residential properties, both completed and under construction, from 14 reputable developers who are approved by NBD.
“Today’s announcement represents NBD’s continuing commitment to the mortgage business in the UAE,” said Suvo Sarkar, Group Head – Retail Banking, NBD. “ As one of the leading retail banks in the country, this tie up with a John Charcol is part of NBD’s innovative approach to providing flexible products to a maturing home finance market, and to diversifying our customer base.” continued Mr. Sarkar.
John Charcol was established in 1974 and is currently the leading UK independent mortgage adviser with a choice of 4,000 mortgages from over 100 UK lenders.
Duncan Banks, Sales Director, John Charcol stated “This is an exciting advance for us. We are delighted to be working with NBD on delivering another innovative and unique solution for UK residents and their financial needs. It’s a great start to our new operation which will be opening in Dubai shortly and represents our first overseas expansion”.
Borrowers in UK will benefit from the consultation expertise of John Charcol and the real estate market experience of NBD. NBD’s mortgage products under this partnership have been specifically designed to fit the needs and requirements of the UK market borrower, with competitive pricing, financing up to 70%, fast application processing and customer service arrangements from within the UK.
John Charcol has won numerous awards during its 33 years in the industry including its most recent awards “Best Mortgage Broker 2007” awarded by Mortgage Strategy and “Best Overall Mortgage Broker 2007” by What Mortgage.
NBD was recently awarded the “Best Retail Bank in the UAE” award by The Asian Banker. It offers a comprehensive range of retail lending products including mortgage loans, auto loans, personal loans, credit cards and loans for business finance to UAE nationals. In the area of mortgages, it provides home loans, office loans, home re-finance loans and loans for self-construction of property.

More Salik misery for motorists around Dubai Roads

Traffic flows in some parts of the city, but causing major delays and more congestion in other locations in its first week of operation.
The 'Salik' toll caused lengthy delays around the Al Barsha area and on Maktoum Bridge yesterday, as drivers attempted to use alternative routes to avoid the new toll gates. However drivers have found that Salik has eased traffic for commuters from Sharjah to Dubai.

Dubai Salik, is it really worth it?

Dubai RTA (Road and Transport Association) has introduced a road toll (Salik) along Sheikh Zayed Rd starting today. Congestion has increased as a result, and it seems that the RTA has got wrong as all residents of Dubai have predicted. It is hard to avoid traffic around Dubai and if you decide to pay the fee and use the toll, you are not able to do so as there is no stock of the registration sticker any where to be seen. The RTA should have looked as alternatives before taking the decision to go ahead with the toll though it was very clear to everyone that it will cause a lot of disruption to so many drivers trying to do their business in Dubai.

Burj Dubai is now second tallest building in the world

Burj Dubai, the iconic tower developed by Emaar Properties, is now the second tallest building in the world, 468.1 metres (1,535.8 ft) high and with 130 storeys. Burj Dubai is taller than Petronas Towers in Malaysia (452 metres; 1,483 ft) and Sears Tower in Chicago (442 metres; 1,450 ft), and is second only to Taipei 101 (509 metres; 1,670 ft), taller by only 39.9 metres (145.2 ft). Burj Dubai has also set a new world record for vertical concrete pumping for a building, by pumping to over 460 metres (1,509 ft). The previous record was held by Taipei 101 for pumping concrete up to a height of 448 metres (1,470 ft). The all-time world record for altitude transportation of concrete was set during the extension of the Riva del Garda Hydroelectric Power Plant in Italy in 1994, when concrete was pumped to a record level of 532 metres (1,745 ft). Burj Dubai will also break this record before construction is complete. “This is another proud moment for Dubai as the city’s iconic tower continues to scale its way upward to become the tallest building in the world,” said Mr Mohamed Ali Alabbar, Chairman, Emaar Properties. “From now on, every new level and every additional metre on Burj Dubai will be the culminating steps in building an architectural and engineering marvel that reiterates Dubai’s global capabilities.” He added: “Burj Dubai is already in the international spotlight, and with the cladding work having commenced and being undertaken at an accelerated pace, the world’s tallest building will be completed according to plans. The construction of the tower, indeed, marks the cosmopolitan approach of Dubai, whereby the best minds from all over the world come together to realize a vision for growth.”
Designed by Chicago-based Skidmore, Owings & Merrill (SOM), Burj Dubai is being constructed by high-rise experts South Korea’s Samsung Corporation. Turner Construction International is the project and construction manager. More than 318,000 cubic metres of reinforced concrete and 63,000 tonnes of reinforcing steel have been used in Burj Dubai’s construction to date. The construction of 130 levels was completed in 1,226 days since excavation work started in January, 2004. Ten cranes and the world’s fastest high-capacity construction hoists – with a speed of up to 2 m/sec (120 m/min) - are used to move men and materials. “Burj Dubai is approaching its top-out and construction work has entered a new realm in engineering technology that has no parallels anywhere in the world,” said Mr Alabbar. When completed, Burj Dubai will be the tallest building in the world in all four categories recognised by the Council on Tall Buildings and Urban Habitat (CTBUH), which compiles and ranks the world’s tallest buildings. CTBUH ranks buildings on the basis of spire height, the highest occupied floor, roof height and pinnacle height. Burj Dubai is at the heart of Downtown Burj Dubai, an AED 73 billion (US$20 billion) mixed-use project featuring residences, commercial space, hospitality projects and several retail outlets including The Dubai Mall, one of the world’s largest shopping and entertainment destinations. A mixed-use tower, Burj Dubai will have residences and commercial spaces apart from the Armani Hotel and Residences Dubai, a luxury lifestyle hospitality project developed by Emaar in association with haute couture major Giorgio Armani S.p.A. Burj Dubai will also have recreational facilities and entertainment venues including four luxurious pools and a cigar club, a library, exclusive residents’ lounge, serviced residences, 15,000 sq ft of fitness facilities and an observatory. Burj Dubai is a designated freehold area where investors from across the world can own a home or office.
© 2007 Mena Report (www.menareport.com)

Another addition to the line of Diamonds

Diamond Investments launched Diamond Views in Jumeirah Village South. Diamond Developers, a sister company of Diamond Investments, started construction on its project in Jumeirah Village South a one billion AED project.Built in various phases, the first phase of the Project will comprise 1200 apartment units and 150 townhouses. Diamond views will offer four types of units which are spacious studios, eight types of one bedroom apartments, three types of two bedroom apartments. The townhouses will come in a selection of two, three and four bedrooms.Diamond Views is located only seven kilometres from the world renowned Mall of the Emirates. All the amenities expected in a modern development in Dubai are available in Jumeirah Village: sports facilities, parks, purpose built tracks, fine dining, shopping, movies, and exciting night life options. In 2003 Mr. Fares Saeed CEO of Diamond developers launched the Marina Diamond complex which consists of six residential towers in the Marina, one of the world's priciest and most luxurious neighbourhoods, and has successfully sold the 1300 unit complex. Diamond Developers promise is to offer the same guarantees and customer services that Diamond Investments has successfully implemented.

Dubai Business Bay, the new Manhattan of the Middle East, Is that the answer?

Dubai is in desperate need to have a true character to its business environment. In all major cities around the globe you will find that there are areas which are the true central business district of the city. So far in Dubai it seems there are areas which can match that description but none that can match the ambitions that this state seeks. Dubai has strengthened its role in both the regional and international levels and now is the time it should have a Central Business District that can match the future challenges.In 2005 Dubai launched a mega project (Business Bay) covering an area of 64 million square feet, the promise is that it will be similar in nature to Manhattan or Ginza, which are the business districts of New York (USA) and Tokyo (Japan). The Business Bay will be created as a commercial and business cluster along a new extension of the famed Dubai Creek extending from Ras Al Khor to Sheikh Zayed Road.When the Business Bay district is finished it will offer 625 million sq ft of space with 230 towers planned around a new extended creek.After extensive studies by some of the world's top consultancies, careful planning, the master plan was created and the work immediately started on the construction of very sophisticated network of roads within the project to ensure the easy access in and out of business bay which will be completed before most of the actual construction of the projected towers begins. The creation of the Dubai Metro will add value to the project generating a global commercial and business centre. Business Bay will be a new 'city' within the city of Dubai, it will feature facilities such as office and residential towers set in landscaped gardens interspersed with pathways and canals. Business Bay is believed to be the foundation of the new economic push of Dubai. The project is set to provide a highly conducive environment and infrastructure for businesses from around the world that wish to establish their local, regional and international headquarters at Business Bay.A city like Dubai needs to extend its international role to enable it to be a true business hub of the region so that it can lay the foundation towards the universal business league and truly match the big cities across the globe. The Business Bay should eventually become a genuine meeting place for business in the city.This is a very ambitious Initiative, so can the Businesses Bay rise to the challenge? Well, we will have to wait and see.