The department’s responsibilities include licensing real estate activities and supervising their operations, in addition to taking necessary measures to protect the stability of the emirate’s real estate market by cooperating with the relevant bodies and authorities. The department will also handle promoting the emirate’s real estate sector locally and abroad by participating in conferences and activities in the local, regional and international stage.

It will look into investors’ applications for requested benefits as per the department’s legislations and policies.

The department will prepare and issue studies and reports on the real estate market, and providing conclusions and results to decision-makers so they can benefit from them during the process of preparing policies and governmental programmes. The department will contribute to spreading awareness and knowledge on the market by preparing training programmes for developers, brokers, and other involved in activities pertaining to the sector. It is also tasked with spreading awareness on the rights commitments of dealers.

The Dubai Land Department will also be responsible for providing consultations to investors, brokers and developers, and introducing projects and programmes that enhance the role of Emiratis in the properties sector and encourages them work in real estate. The department will look into issues concerning the sector, and propose solutions by organising specialised seminars and workshops.

The law stipulates that the department has the right to evaluate the performance of affiliated bodies and ensuring that they are performing the tasks they have been assigned. The department can review the goals and objectives of these bodies, as well as dissolve or merge them as per the necessary requirements.

Article No. 5 of the law stipulates the annulment of the declaration issued on January 245, 1960, regarding the setting up of the Land Registration Department, as well as annulling Law No. 7 of 1997 regarding fees for land registration. It also annuls any article in any other law that contradicts its bylaws. The law comes into effect from the date of its issuance and is to be published in the official gazette.

Source: gulfnews

“Given that rentals have gone up drastically in the last 12-18 months there is definitely an increasing chance of disputes,” said Niraj Masand, director at the property services firm Banke.

“Furthermore, with capital values also going up, sellers looking to exit are often not in a position to do so as many buyers are end-users and hence a tenanted apartment or villa doesn’t suit their requirements.”

Developer sources believe the proposed rent dispute agency could skew in favour of tenants. A way out would be for future landlords to precisely state what rental hikes could be in the tenancy contract and the period when it would come into effect.

“This way tenants have a clear understanding of what they are getting into and chances of a dispute arising are reduced,” said Khan. “On the landlords’ part they could offer incentives such as a longer rent-free period or offer a one- to three-year moratorium on rent increases. It is how tenancy contracts are structured in many mature markets and could easily be implemented here.”

Apartment gains

All of the key property fundamentals have been headed upwards in Dubai in recent quarters. Cluttons, the property services firm, reckons average residential values across Dubai as being up 30.6 per cent — led by apartment gains with 34 per cent — in the first six months. Rentals too have been tracking upwards, and market feedback suggests there have been some sharp rise in the asking rates since late August.

And it is not confined to the residential sector alone. Commercial rents too have been treading up, but within certain locations and on select properties. The steady supply of new commercial stock has meant rentals have been range bound.

“The biggest plus from the Rent Dispute agency is the fast-tracking of settlements; where it used to be three months or more on average, we are talking about 30 days and that’s a major advantage for all parties involved,” said Masand.

“It means that tenants who feel they have been hit with sudden hikes are likely to take their chances at the dispute centre. More so, since the new decree makes it clear that any ruling below Dh100,000 on rental claims is binding on both parties.”

Some in the market believe that the new entity could also arbitrate on office rental disagreements. “It could be why that the no-appeals threshold on claims is set at Dh100,000 — it is unlikely that there will be such claims in the residential sector, even within villas,” said an industry source.

Source: gulfnews

Bowtell said it was important to understand that Dubai was an developing market and that the pact of legislation needs to focus on quality rather than quantity.

“The reaction to change needs to be managed and needs to be incremental,” she said.

“Its great if you’re a tenant but it seems to undermine the idea of a contract,” she said.

Cooling companies

However, it is not just landlords and tenants who are feeling the repercussions of current regulations where in some respects the law can either be very landlord friendly or very tenant friendly.

Bowtell said that homeowners were often left surprised by the number of charges they are subjected to.

She said the private district cooling companies regularly increase the prices enforced on homeowners.

“There needs to be some sort of regulation or an ombudsman that homeowners can go to,” she said.

Source: gulfnews

According to the Real Estate Regulatory Agency (Rera), which regulates the relationship between landlords and tenants, a landlord can increase rents by at least five per cent and up to 20 per cent, only if the current rent is below the average market rate.

Meanwhile, Maclean said the centre can also help the local property market become “more regulated”.

Source: gulfnews

During the Great Depression of 1929, the first mistake that many companies made was to downsize their sales force. This action essentially compounded their problems because it further inhibited revenue generation. This was one thing that we refused to do and, during the course of the recession, we actually grew our sales force by 30 per cent and, not coincidentally, our revenues grew in the four years.

So the focus was really on revenue generation complemented by realistic cost control measures designed to enhance productivity, not strangle operations.

Revenue generation was brought about by expanding services as opposed to slashing the prices of our services. The diversity ensured that we did not have to rely on just “buying and selling” to survive.

On the cost side, it was important to modify the business to reflect a more variable cost structure. Fortunately, we had always been conscious of overheads, particularly those that were fixed in nature and re-structuring the business to minimise those fixed costs was not too difficult to achieve.

Finally, it was about people. To develop and maintain a competitive edge any business must have a team dedicated to providing the best they possibly can for their clients. This includes not just generating the solutions but executing and delivering on promises as well.

During the recent crisis, overstretched is probably not the right word to describe the situation property companies were in. Many companies were not structured to deal with the crisis and had operated during a period when selling property in Dubai required little or no effort and even less business acumen or professionalism.

 A seller’s market

It was a seller’s market of a magnitude that has rarely been seen before and is unlikely to be seen again. The recession achieved what recessions typically do by revealing the flaws and weaknesses of those organisations that had been conducting business with limited vision or a long term perspective. While the short term gains may have been exhilarating, it typically came at the expense of long term survival.

The industry will always be cyclical in nature and only those organisations that are constantly improving, adapting and developing will last in the distance. To do that, an organisation must be able to capitalise on the good times and minimise the effect of the bad times.

We must understand that we are living in a region which is undergoing significant challenges, most of which have emanated from regime changes and the global recession. There is no doubt that Dubai’s real estate industry has benefitted from significant capital inflows as a result of regional events and there will always be an “ebb and flow” effect depending on the geo-political situation at any given time.

It’s an old adage but a good one… plan for the worst and hope for the best.

 — The writer is the managing director of Harbor Real Estate.

Source: gulfnews

Things happen and you need to be aware of what happens in case you’ve to sell the property and leave the country. Are you buying a property that will be attractive to sell for its location, for example? Will you be able to rent it until you find a buyer? Get a clear understanding of any financial penalties that are involved in selling the property. In addition, assuming the property market will continue to appreciate, find out whether you will be able at least to break even if you get out of the deal earlier than planned.

Your risk

Know how lenders price their mortgages. If you have been in the UAE for a short period or you have not had a stable job for a long enough time, lenders may consider you a high credit risk and charge you a higher interest rate. The same goes for the amount of down payment that you’re willing to pay. In short, ask the simple question about what you can do to reduce your mortgage costs, if possible. You may find that putting more money down or waiting for a year or so, could get you better terms. Still don’t miss the changes in the property market. With the expected increase in property prices may simply price you out because your income may not be rising as the same pace.

Shopping around

With all of the questions mentioned previously in mind, make sure that you shop around and get a deal that best fits your plans. Don’t let your guard down from start to end. If you see anything that doesn’t seem right, pause and ask for explanation or revision. In many cases, small points that are overlooked in the rush of completing applications and closing paperwork often come back to haunt homeowners.

Source: Rania Oteify is a former Gulf News Business Features Editor

Retail rents for super prime malls stood at Dh4,980 per sq. metre in the second quarter of this year, up from Dh4,700 per sq. metre in the last quarter of 2012, Plumb said.

Meanwhile, according to a new CBRE report, Dubai’s average retail rents for prime locations stood at $114 per sq. feet per annum as of the second quarter of this year, while in Abu Dhabi it amounted to $71 per sq. feet per annum.

Secondary malls

Over in Dubai’s secondary malls, such as Ibn Battuta Mall and Al Ghurair Centre, retail rental rates are flat, property consultants said.

Rents over there have dropped by 7.5 per cent in the second quarter of this year to Dh1,722 per sq. metre, from Dh 1,862 per sq. metre in the last quarter of the previous year, according to Plumb.

Competition in the market has kept rental rates flat, he said, adding that “vacancies are likely to rise in secondary malls.”

However, Green said that although rates dropped previously, they are now improving as occupancy increases. Still, rents remain flat.

In the past five years, high-end brands have been leaving secondary malls and going to more prime locations.

“As more destination malls are delivered, retailers go to where there is high potential of sales and footfall,” Green said.

Secondary malls, meanwhile, have attracted local brands and start-up businesses that serve residents in the area in an effort to re-position themselves, he said.

Retail supply

There has been a relatively small increase in stock of mall-based retail space since late 2010, given the overall size of the Dubai market, according to Plumb.

“There is very little new retail supply in the last two to three years,” he said.

Total stock of mall-based retail space stands at 2,816,000 per sq. metre this year, from 2,648,000 per sq. metre in late 2010- which is an increase of 168,000 per sq. metre over the last three years.

If planned retail projects for the future are delivered, “there would be excess supply, but in reality, some will be delayed,” Plumb said.

By 2016 and 2017, an increase of supply will result in tapered rents, according to Green.

Over the next year, he expects “a steady improvement in rents.”

Source: gulfnews

Shaikh paid Dh186,610 for a one-bedroom unit in the Toronto Tower project in International City Phase III. The price of the development was Dh327,386. It was due for completion in November 2007.

Six years on all that stands on a large swathe of barren land is a long stretch of rickety black fence.

“When I sought to withdraw from the project they offered me only 30 per cent as refund and said that I could challenge them if I liked. Lawyers told me it was a straight case and I would win it but then what? I had no confidence of getting back the actual amount,” said the 52-year-old, who had shelled out another Dh257,000 for a one-bedroom unit at Chapal the Harmony project in Emirates City, Ajman. Only five levels out of a planned 27 and six parking levels were complete as of last month. On paper it should have all been completed by 2011.

Shaikh says the developers have offered him a ‘swap deal’ with a Dubai Sports City property but at a ‘premium price’, Dh100,000 above the market rate. The International City project is apparently up for liquidation.

“I came to know about it from another investor. When I contacted Rera, they confirmed that the project was up for liquidation but didn’t specify other details.

In response to an XPRESS query about the refund process, the Dubai Land Department said that investors could contact Dubai Courts as the committee in question belongs to them.

Canadian expatriate Taimur, 27, invested about Dh850,000 in four one-bedroom units worth Dh2 million in a Dubai Lagoon project undertaken by Schon Properties.

Due for completion in 2007 it has yet to be finished. But he too, like Shaikh, hopes he will not be forced to forget about his hard-earned money.

About 217 projects were cancelled in Dubai between 2009 and 2011, according to Rera.

Source: gulfnews

He said along with Dubai being seen as a safe location for investment by Arab Spring investors it was also becoming the ideal location for Saudi, Kuwaiti, and Qatari investors looking to buy a second home.

Other factors lending to the higher average prices were that Dubai residents were now looking to purchase instead of rent due to increased rental rates and lower mortgages, Jain said.