Posts tagged: real estate

Dubai was touted as the Middle East El Dorado. But the present recession has hit Dubai hard with particular reference to Mortgage finance. Mortgage means owning a property by paying for it over an extended period of time in installments. This contrasts with a normal property purchase where in price of the property is paid in one lump sum. The property boom in Dubai led to sky rocketing prices with the result owning a piece of property through mortgage finance became a favored option.

In a mortgage the title of the property vests with the creditor till the loan and interest due is liquidated. In the event of a default and nonpayment of the loan the creditor can take over the property for his own use.

In Dubai mortgages have a slightly different connotation. As Dubai is a Muslim country the Shariat law cannot be completely bypassed. Amlak Finance and Tamweel are two of the biggest mortgage companies and have 60% share of the market. However both work within the confines of the shariat law.

As the majority of the population of Dubai is Muslim, loans are so tailored that they are shariat compliant. One of the principles of shariat loans is no interest to be charged. The result is that a bigger amount as down payment has to be paid as compared to a conventional mortgage. But it follows that that the repayment terms will always be better. Thus in a lot many cases non Muslims sometimes have exercised their option for Islamic mortgages.

However the construction recession has ushered in a negative effect on mortgages as Dubai is gripped by recession. Figures given out by the government and the Dubai land department show that the Dubai mortgage market slid down by 73 percent last year. The New Year may not bring substantial improvement on the real estate front.

The down slide in real estate values with some of the properties selling at a discount of 50% in value has affected a lot many people. There has been loss of jobs and income and for some payment of the mortgages is a problem. Some of the foreign expats who had taken out mortgages earlier when the going was good are feeling particularly vulnerable. This is because of the law in Dubai where non payment of debts can land you in jail. Mortgage is a debt and it is a worrisome scene.

For the past few years Dubai has proven itself to be the darling of the property investment world both within the Middle East and beyond, it continues to offer high rental yields and a very good capital growth rate of near 10% which we see today.

Yet Dubai’s development has not just been restricted to the real estate sector, the tourism sector has grown by leaps and bounds in the past 3 years alone. With tourists staying in Dubai hotels numbering 5.4 million in 2004, whilst in 2006 tourist staying in Dubai hotels grew significantly to 6.5 million people. With the number of hotel rooms and flats numbering 40,862 in 2006 and the government of Dubai aiming to reach a target of 8-10 million tourists by 2010 shows that there is at present a significant gap between growing demand and availability of supply for tourist accommodation which may be increasingly felt as major future attractions such as Dubai land and Dubai Sports City open for business.

This level of growth in the tourism industry in Dubai has led to a very high occupancy rate for hotel rooms and apartments for example the occupancy rate stood at 85% in January 2007 alone. This has presented Dubai and UAE property investors as a whole with a splendid potential to capitalise on this growing market, the traditional method of property investment in such as buy to lets in Dubai may offer investors around 8% rental yield per annum. Yet short term letting tenants are charged hotel rates per night which depending on location and quality of properties, landlords can stand to make 10-15% rental yield per annum at today’s hotel rates.

This is a situation which is not solely confined to Dubai, it is also very much applicable in other Emirates such as Ras Al Khaimah especially in established resorts such as Al Hamra Village , where hotel accommodation does not suffice to meet demand.
A common question asked by many investors is what is the best way take advantage of accommodation supply gap in Dubai?

There are two main routes which buyers can take with regards to this:

• The 1st method is to purchase an apartment or villas and utilise a high quality property management company which will take care of an investors property. Normally the management charge will be 20-25% of an apartments rent per annum. It may also be necessary to buy a furniture package from property management company which may vary in cost between £2-£5K.

• The second option available to investors is to purchase a hotel apartment in one of the key future tourist locations such as Sports City in Dubai, such as The Cube [http://www.miragerealestate.co.uk/Property.php?pageNum_rsMaster=3totalRows_rsMaster=40&&PropertyID=53]. These developments are often managed by 5* hotel companies which will in many some occasions give investors rental guarantees and 30 days complimentary stay within the hotel. These are developments in a majority of cases will be fully managed, maintained and furnished with no additional cost to yourself.

Those property investors looking for long term investments who do not intend to move into their properties should consider the hotel apartments as their ideal investment solution. It is a type of property which does not require any significant effort on behalf of investors in terms of finding a capable property management firm to maximise property rental turnover, which saves both time and money. Short term holiday letting is the ideal form of buy to let for the savvy Dubai investor, with rumours of rental stabilisation in the traditional buy to let market, holiday home letting presents one the best potentials for sustained high rental yields.

By

Hamid Shah
Director of Mirage Real Estate Ltd [http://www.miragerealestate.co.uk/] [ad_2]
Source by Hamid Shah

In the past the Dubai Real Estate Development Business has been an oasis for any new coming want to be Real Estate Developer. If someone wanted to develop a Real Estate project in Dubai all they had to have was: enough money to buy their license, rent an office, buy a plot, pay an architect and hire some staff. The ministries didn’t find it necessary to demand and research the new coming developer’s company history or their professional experience. Unlike in western countries, where a track record is mandatory, in Dubai the government even allowed a developer to launch several projects at the same time. No ministries were there to double check and bring to a halt all the happy-go-lucky developers which were launching one project after another.

With so many developments that have been speedily launched in Dubai we are still left with the uncertainty with the actual ongoing development and developer’s final commitment. RERA is now the Regulatory Agency which has been appointed end of 2007 to look out for the Development coordination in Dubai. Nevertheless, still many investors have been left worrying about their previous investment in Dubai Properties. RERA should help investors gain more clarity of the ongoing situation of all the developments. Many questions need to be answered like: Which Dubai Property Development is being canceled? Which development is on hold? Which project is overdue? For example what happened to Dubai Waterfront, Jebel Ali Downtown, Jumeirah Village, Cultural Village, Palm Deira and The World Dubai? Dubai Land and Falcon City seems far from happening. Several projects in Business Bay have been put on hold.

Described as the world’s first purpose built maritime centre, Dubai Maritime City is a state of the art development zone, designed to act as a regional hub for the maritime business in Dubai. A genuinely mixed use development, Dubai Maritime City will also offer a range of luxury residential and commercial opportunities ensuring that the area becomes a focal point for the near 5,000 regional maritime companies working in Dubai. As well as the residential, industrial and commercial areas, the development will also include a large maritime research academy, designed to offer the companies in the regional access to the very latest developments and technology within the marine industry.

The development itself will be strategically located between the Dubai Dry Docks and the Port Rashid development. Covering over two square kilometres, Dubai Maritime City will offer its residents spectacular views over the clear blue waters of the Arabian Gulf. Connected to the mainland by a causeway, it only seems fitting that the worlds leading marine development will be built on land which has been reclaimed from the waters of the Gulf. A genuine superstructure in engineering terms, it is estimated that the project will consist of over 30 million cubic metres of dredged sand and over 2.5 million cubic metres of rock on its completion.

As with many of the free zone development areas in Dubai, Maritime City is designed to create a regional hub of sector specific companies. Within the development, there will be a focus on six major sectors within the maritime industry: marine services, marine management, product marketing, marine research and education, recreation and ship design and manufacturing. The only facility of its kind in the world, DMC seems set to become a global ‘centre of excellence’ for the maritime industry.

As well as the focus on the marine industry, there will be a wide range of residential property in Dubai Maritime City. Already developers have started to announce major projects such as the Iris Mist and the recently launched Admiral Bay within the Harbour Residences area of the development. True flagship residential projects, the property in Maritime City is made up of predominantly high-end luxury apartments which offer stunning views over the Arabian Gulf.

With innovative and unique projects such as the Dubai Maritime City Campus and the Maritime Centre already launched, it is highly likely that more exciting projects will be announced in the development over the coming months. With demand for commercial and residential property in Dubai reaching an all time high, it is likely that the property in Dubai Maritime City will be in high demand.

Already a popular destination for all types of sporting events from closed season training to international tournaments, Dubai Sports City has firmly established Dubai as the number one sporting destination in the world. Given its proclivity for being the biggest and the best, the ambitious Dubai Sports City property development comes as no surprise; it is but a natural progression for this Emirate.

The center piece of Dubailand, the world’s largest theme park and tourism destination, you can expect nothing but the best in terms of sporting facilities as well as the residential and commercial freehold Dubai property available at this purpose built city.

Check It Out!

With its comprehensive range of avant-garde sporting facilities, Dubai Sports City is what dreams are made of, whether you are a sportsperson actively participating in sporting tournaments or a spectator soaking up the thrills of the sport.

Sprawled across 50 million square feet of land within Dubailand, Dubai Sports City is home to state-of-the-art venues, each of them designed and built in accordance with the stipulations laid down by the global governing bodies for the relevant sports.

Take a look at what Dubai Sports City has to offer athletes and spectators from all over the world:

• A 60,000 seat multi-purpose outdoor sports stadium for football, rugby and all types of track and field events.
• A 10,000 seat indoor arena for basketball, volleyball, indoor hockey, ice hockey, netball and handball. It also doubles up as an entertainment center for shows and concerts.
• A dedicated cricket stadium with a capacity of 25,000
• A field hockey venue for 5,000 spectators
• An Olympic size swimming pool
• Multi-functional, state of the art 3,000 square meter gymnasium
• A sports rehabilitation clinic
• World-class sporting academies that offer training programs are customized to suit participants of all ages and abilities

There’s More…

In addition to all of the above, Dubai Sports City will also host:

• The world’s first, purpose-built Manchester United Soccer Schools facility
• The International Cricket Council’s own Global Cricket Academy
• A Butch Harmon School of Golf; the only one outside of the United States
• David Lloyd Tennis Academy
• The Dunes, a plush 18-hole championship golf course, designed by none other than Ernie Els, international ambassador of golf. Nothing but the best for Dubai Sports City.

And More…

In addition to the splendid sporting facilities, the Dubai Sports City property development also boasts superlative residential and commercial developments including the world-class medical facilities and international schools along with ample leisure facilities, hotels and shopping opportunities. A sports-themed retail mall is the primary shopping destination complemented by numerous retail shops, boutiques and plazas.

The commitment to a healthy, relaxed lifestyle is evident everywhere; from the multitude of open parks and lush greenery to the waterway of canals that runs through its center and the well-being and lifestyle country club, the Next Generation Club.

At the Heart of Dubai Sports City – Sport

Capturing the very essence of sport, Dubai Sports City is truly a place where legends are made and sport is life.

The UAE has witnessed tremendous increase in real estate projects bringing with them beautiful rental properties, that has real estate companies in Dubai and Sharjah geared up for another great quarter.

1. AURA RESIDENCE

Downtown Jebel Ali is soon to welcome a new addition to its skyline with Aura Residence which is due for completion towards the end of 2018. The building’s robust and modern look has been the talk of the town along with its convenient location near Dubai Metro’s UAE Exchange Station as well as the Expo 2020 site.

The gargantuan establishment will feature 479 residential units comprising of 347 studio apartments, 87 one-bedroom apartments, and 43 two-bedroom apartments.

2. SHARJAH AL BAIT

Sharjah hasn’t seen a luxury resort open up for quite some time which has people eagerly waiting for Al Bait’s grand debut this year. A unique rendition of a historic hotel, this 53-key five-star property will be an epicenter of the Emirate’s position as a heritage hotspot.

The hotel is expected to be a trendsetter, sporting traditional themes such as handcrafted thatched roofs and Bedouin styled enclaves. The luxury guestrooms and suites will be connected to Souq Al Arsah which is the UAE’s oldest traditional marketplace.

3. EWAN RESIDENCES

The month of May will see the Dubai Investment Park area brim with 51 new units in Ewan Residences. The area already consists of 83 completed buildings and will feature three G+2 accommodations soon.

Meanwhile, as part of ‘The Waves’, developer Lootah Real Estate has announced its delivery in August. Located in Jumeirah Village Circle with a total of 135 units, ‘The Waves’ will contain a mix of one- and two-bedroom units and one-bedroom loft apartments, ranging from 45.1m2 to 185.8m2.

4. MIRA OASIS

Picture an area with luxurious units as far as the eye can see. With over 1,300 contemporary townhouses available as a cluster or terraced houses, Mira Oasis is close to the Arabian Ranches Golf Club, Dubai Polo & Equestrian Club, and Global Village. All units have large balconies, modern fixtures, driveways and courtyards with options of 3 and 4 bedrooms. The Residents’ Clubs will contain a pool, spa and fitness centre.

Split into phases, the first three are to be completed by December.

5. TIME HOTELS

Continuing on a streak of hotel constructions in Saudi Arabia, Qatar and Bahrain, Times Hotels will be entering the UAE real estate possibly by the year end. The company will open three additional hotels in Dubai: Time Asma Hotel, Time Express Hotel Al Jaddaf, and Time Royal Hotel & Spa with Time Royal being the firm’s first five-star property in the Emirates.

While a considerable number of Kerala residents dwell in foreign countries, real estate in Kochi has always been the subject of NRI interest. Of late, the surge created by influx of IT/ ITeS based companies in the property markets has also resulted in soaring property prices in Kochi.

A large number of employees are settling in the city and the demand has visibly impacted the capital prices and rental values of properties here. Nevertheless, the NRIs have no pangs over the same and property investment in Kochi is still their one of the favorite options, sources informed.

Demand pattern

According to the property dealers in Kochi, most of the NRIs look for sea-facing residential properties in the city. Perhaps, that’s why localities around Marine Drive and MG Road are the most premium residential locations in the city.

However, the vacancy rates in these areas are at rock bottom and hardly any properties are available for the sale. Also, the markets experts feel that the prices are too high now and do not offer room for further growth from investment point of view.

Consequently, NRI investors have been reportedly taking interest in sub-urban locations like Kakkanad, Edappally, Kalamssery, Ankamali and Thripunithura.

Extensive construction activities are underway in these areas, and real estate majors like DLF, Puravankara, Sobha, Prestige, and Brigade Group have lined up their ambitious projects across these areas.

Given the demand for higher-end residential properties, international players too are eyeing the Kochi Property markets. Recently, Dubai-based Emaar Group has also launched its project in the city.

Of Property Values in Kochi

Given the boom in Indian real estate in the past couple of years, prices of apartments at Marine Drive shot up by almost 300 per cent from Rs 1,500-Rs 2,400 psft to Rs 5,000-Rs 7,000 psft, in the period between 2005 and 2007.

The capital values for apartments at the aforementioned suburban locations are in the range between Rs 1,500 and Rs 4,000 per sq. ft. (Source-MagicBricks.com).

To know more about Kochi Properties [http://www.magicbricks.com/property/city/p/p~p!ct~3637!/Kochi.real-estate] visit – magicbricks.com

The 10-stories high Al Dana II project is one of the most spectacular residential properties in the real estate market of Dubai. The project comprises of a ground level and ten deluxe residential floors. The ground level has eight commercial chambers and twelve residential apartments. The apartment building has a separate free car parking area, health gym and an attractive swimming pool. The interior of Al Dana II is brilliantly done with lavish furnishings and equipment. The residential compound is encircled by immaculate landscape gardening and surrounded by the multicultural communities of the International City’s Complex.

The covered area of the project is about 33,076 square feet and it is just 8 minutes drive from the Dubai International Airport. The extensive residential complex of Al Dana II offers one and two bedroom super luxury apartments. Each floor has only 12 apartments and maximum space is made available for each residential unit.

Location

Al Dana II is located around the scenic International City of Dubai, one of the most influential cosmopolitan areas of the entire United Arab Emirates (near to Dubai International Airport, Dubai International Financial Center, Dubai Festival City and Dubailand). The project consists of a pre-designed compound that covers a huge area of 800 hectares.

Located in the heart of Dubai and accorded with matchless residential and business arenas, Al Dana II draws the attention of investors, agent and dealers worldwide. The Al Dana II city provides accommodation to over 60,000 residents making it one of the most prominent residencies in the real estate property market of Dubai.

Facilities at a Glance

Al Dana II provides an elegant lifestyle to its buyers with state-of-the-art leisure and recreational facilities. A few of the remarkable amenities of the Al Dana II project include:

– Gym and fitness centers

– Sauna & steam baths

– Beautiful swimming pools

– Granite and ceramic flooring and gypsum ceiling

– Auditory and thermal insulation

– Modern elevators

– Free parking area

– Conference room and club house facility

– High-toned interior

– Superbly furnished kitchen with high quality dishwasher, refrigerator and oven.

The payment terms for Al Dana II residential apartments are very affordable and convenient too. The prices for one bedroom apartments start from US$ 114,594 while the prices fro two bedroom apartments start from US$171,653. On booking, the customer is required to pay 15% of the total amount while 5% will be paid one month after the booking. After that, 10% is paid after every 3 months till the project is finished and upon completion the remaining 20% will be paid. To make payments easier, financing is also available that helps customer to secure an apartment in Al Dana II without much hassle.

The real estate industry in Dubai is in a huge boom. Property prices are soaring to new heights. The property boom in UAE give a return of nearly 30% or more. Thereby, investors do get a huge turnover on their investment here.

Who are interested in real estate?

The option seems very attractive to those who plan to migrate to UAE. It is most suitable for those who want to retire in a peaceful haven. It is also suitable for relocating entire family as it is modern and safe. Another section of people who are interested are those who want to make huge returns from their commercial investments.

Why is buying property attractive option here?

Owning properties in this region is a safe, sane and attractive investment because of the following reasons:

o The climatic conditions in are pleasant and sunny.

o The exchange rate is favorable.

o The place offers cosmopoitan life style.

o UAE is a hub of cultures and an epitome of industrialization and globalization.

o Unlike the other Arab regions, the city is more informal, shatters conventions and other traditions. Thus, it is more suitable for people of other cultures and conventions.

o The entire cultural and investment scenario here caters to a global regime.

o It has excellent education and job opportunities.

o The healthcare facilities ace the global scenario.

o It is also a hub of entertainment. There are umpteen restaurants and nightclubs which provide a tax-free lifestyle that only people in other nations can only dream of.

o The city also has plenty of food zones. Though Arabic food is their speciality, international cuisines can also be found in plenty. Pizza Hut, KFC, McDonalds, Hard Rock cafe and many such food chains accommodate a prominent place here.

o The trendy nightclubs of the region offer an exhilarating experience. Regional or country-specific night dubs can also be found here in plenty.

The property market is a composition of modern Skyscrapers and traditional architectural buildings. People are free to choose whatever pleases them. The best niche for successful investors is investing in Dubai real estate. Studies prove that the number of foreigners far exceeds the number of natives here.

Over the years, there have been a number of positive changes in Dubai’s property sector. One of the most important developments was undoubtedly the 2002 ruling that allowed foreign ownership of properties in freehold areas of Dubai. This was followed by the enactment of a law that made escrow accounts compulsory for those Dubai developers selling off-plan properties. These accounts provided significant security to buyers, instilling in them greater confidence to invest in Dubai properties.

In consequence, Dubai’s property sector matured rapidly. Some signs of a healthy and mature real estate market are stability in property prices, increased transparency in real estate laws, protection of investor’s rights and greater competition among developers.

With all this being implemented, Dubai’s real estate sector was bound to attract a substantial amount of investment. Dubai has become well known all over the world for constantly introducing world class projects that offer unique opportunities, strong mass appeal, and high returns with a mixture of excitement and enthusiasm.

Efforts by the Government of Dubai to establish a regulatory framework through Real Estate Regulatory Authority and Dubai Land Authority that addresses company laws, financial laws and real estate laws has given both private and institutional investors greater confidence in investing in Dubai.

As always, a solid regulatory foundation is critical to encourage foreign investment anywhere. The rulers and Government of Dubai have always sought to promote a strong natural association between Dubai and luxury. As a result most real estate developments from hotels to resorts to apartments and villas have focused on the premium segment of high net worth individuals and families. Additionally, with the increased land and construction costs in Dubai, developers have chosen to develop projects at the luxury level to make them more economically viable.

Research has proved that there exists strong end-user and investor demand for lifestyle themed projects both locally and internationally. For instance, golf and waterfront projects have tremendous lifestyle appeal and consequently have become a significant part of Dubai’s development strategy. These luxury custom homes on the waterfront or in exclusive themed localities come fully landscaped providing such elements as resort style swimming pools, manicured gardens, outdoor seating areas and expansive patios for dining and entertaining. With a large number of villas already sold out, it has created a successful impact on those buyers who are looking for a unique property proposition.

Representing the wave of the future, resort homes provide residents with the experience of living in a first class resort all through the year. These homes have been designed by architects, interior designers and landscape planners from the hotel and resort industry. So the quality of finish and attention to detail in these resort villas could very well be compared to those found in first class hotels or resorts. To complete the overall experience, these villas come with a dedicated concierge service. It is these features that will distinguish resort homes from conventional housing.

Coldwell Banker is one of the oldest real estate firms in the world. The company was formed in 1906 in the USA and takes its name from the partnership of Colbert Coldwell and Benjamin Banker. Today it has an international presence in most of the world’s real estate hotspots. The firm’s commitment to customer service and professionalism continue to be the cornerstones of its business philosophy. We believe that our progress depends upon yours. Do contact us if you are interested in investing in the Dubai property market, buying or selling in the Dubai real estate market, or want to rent property in Dubai for the short or long term.