Author: mohanadalwadiya

It’s not just a hype!

Since the crash in 2008, Cityscape hasn’t been the same as the previous years with a clear dip in number of visitors and exhibitors. However, there seems to be an upward movement in the market now, so what are the expectations from the show?

There is a lot of excitement surrounding Cityscape Global 2013. The excitement mirrors the recovery of the market in Dubai and reflects the confidence that developers, investors and other industry stakeholders globally have in the Dubai real estate recovery. Exhibition space has been sold out for well over two months now and e show is said to be 50 larger than the previous event. Over 200 exhibitors will be present with some, such as Diamond Developers, SKAI, and Sobha Group participating for the first time. Established local developers such as the MAG Group, Omniya, Tanmiyat, Jumeirah Golf Estates and
Union Properties, returning after an absence of several years, are expected to showcase new developments and current project updates. Dubai’s mega developers, including Emaar, Nakheel and Dubai Properties Group will again showcase their vision and capabilities and are expected to once
again underpin what is really one of the world’s premiere real estate and property exhibitions. International developers will once again be well represented. Turkey continues its strong presence with more than 20 developers including Agaoglu, Eroglu, Vadistanbul, and NEF showcase their latest mega-projects in .the country’s property market.

Where exactly is Dubai’s market at the moment? Is the positivity a reality or just hype?

No, the numbers speak for themselves. With transaction prices up between 15 and 30 depending on asset type and area and rental returns showing similar growth characteristics, Dubai’s real estate recovery has been underway for at least two years now, reaching a total of AED89 billion invested in the first half of 2013 alone. The increase in levels of demand can be demonstrated by the number of sales transactions which have grown by over 40 during the same period so the growth the industry is growing in both volume and value per unit of area. This is a good sign.

How do you think Cityscape Global 2073 will affect the current scenario in the market especially with a lot of off plan projects getting sold out on record time recently?

We must remember what Cityscape is about. It allows the industry to showcase its vision and capabilities and demonstrate what shape Dubai will take in the future. It’s an invitation for the various stakeholders to understand, evaluate and participate in the emirates’ growth. It is a meeting place of some of the biggest and brightest minds in the industry representing all stakeholders in the industry. It allows these stakeholders to contextualize the current situation in a framework that depicts the future and Cityscape Global 2013 will play an important role in allowing participants to determine what the future opportunities are for Dubai’s Real Estate industry and how they can participate, contribute or help shape its realization.

Will we get to see project launches at this year’s event? Please explain.

Yes … we expect to see new projects show cased from a variety of developers. It will be intriguing to see in detail some of Dubai’s recently announced projects in addition to a number of surprises by some developers who will use Cityscape to launch their projects. Some of the larger projects are awe inspiring in their size and magnificence. Of special interest will be Mohammad Bin Rashid City. Featuring the world’s biggest shopping mall, more than 100 hotels, a Universal Studios theme park and a public park larger than London’s Hyde Park this project has an estimated $ 100bn of residential projects and has already attracted the attention of the industry worldwide. Emaar has already announced plans for the Dubai Hills Estate, which is part of the wider Mohammad Bin Rashid City project and Dubai developer Meydan, with the Sobha Group, will be developing the 4 million square meters first phase of the city. Then there is the 6.5 million square metres Dubai Creek Harbour project, complete with business, shopping, sporting and entertainment facilities, which is an exciting joint venture between Emaar Properties Dubai Holding. Meanwhile, Damac revealed plans for Akoya, a residential project which will include an 18-hole Trump International Golf Club in addition to the planned $ 1 bn Damac Towers with Hollywood film studio Paramount in Downtown Dubai.
Bluewaters Island project by Meeras Holdings will be located just off the coast of Jumeirah Beach Residence and will include the world’s tallest Ferris wheel will join other coastal developments such as SKAI Holdings’ plans for the Viceroy Palm Jumeirah and Nakheels Pointe at Palm Jumeirah.
There are niche developments like the Andalusia Collection by National Properties. Located within phase 3 of the sought after “The Villa” project. This development consists of only 69 luxury Villas but offer exclusivity, unique design and a superior level of quality and fit and finish that sets this collection apart from any other villa within The Villa project. Almost like a community within a community. Other projects include the Dubai Design District, Dubai Trade Centre District development along with a number of other developments which will be launched in anticipation of Dubai’s continued resurgence.

Cityscape promotional materials point to a clear increase in the number of exhibitors. Do you think there will be an increase in number of visitors as well? And do you expect to see overseas visitors as well?

Definitely. I wouldn’t be surprised to see this year’s Cityscape attract over 30,000 visitors with a strengthening contingent from the overseas community. This is because property investors and developers are looking allover the world for opportunities and Dubai, with its resurgent industry has been leading many of the world’s real estate markets in terms of recovery and rebounding from the devastating effects of the Global Recession. Dubai ‘is back in on the consideration list.

Tell us about Harbor Real Estate’s new initiatives. Also are you preparing yourself for the good times ahead?

We will always welcome good times but, to be honest, we have been enjoying good times for some time now. There is always much excitement and hype around new projects and Harbor has enjoyed being involved in bringing many new projects to life and eventually to market. But we have also been busy developing new concepts and approaches in the area of Strategic Planning, Asset or Property Portfolio Management and Investor Strategy Development and Counseling. The demand for these areas of expertise have been growing steadily since the global financial crisis and Harbor is fast becoming the first port of call for an increasing number of Investors and developers as they seek greater margin from their activities.
We have enjoyed considerable success in creating success for our clients and are excited in continuing to develop our business in this area. In addition, we are continually expanding our capabilities in the area of property management services. This area of our business has grown tremendously due to the increasing awareness among property owners of the importance of properly managing and maintaining their real estate investments.
We are pleased that an ever increasing number of both institutional and individual clients have placed their trust in Harbor and consider Harbor to be the most effective, efficient and innovative services provider in the industry today. We are proud of our record in this important area of the business.

مطالبات بالتوسع الأفقي وتوفيرها لتكامل المنظومة العقارية

أراضي تطوير الفلل ضمن المجمعات المكتملة توشك على الإنقراض

دعت مصادر عاملة في السوق العقاري المحلي في دبي شركات التطوير العقاري الرئيسة لتوفير كافة المنتجات الاستثمارية التي تعود بالفائدة على جميع الأطراف وتدفع إيجاباً نحو تكامل المنظومة العقارية وترفع في نفس الوقت من عنصر الشفافية بين أطراف معادلة هذه الصناعة تحت عنوان تحقيق المصلحة العامة.

وأوضح مطورون ومستثمرون أن الأراضي المخصصة لتطوير الفلل السكنية ضمن المجمعات المكتملة أو التي قاربت فيها أعمال البنية التحتية على الانتهاء في “عقارات دبي” بدأت تتقلص مساحاتها لتصل قريباً إلى مستويات الانقراض .

طالبت المصادر الجهات المعنية وكبرى شركات التطوير البدء بدراسة خطة للتوسع الأفقي ضمن مشاريع ومناطق جديدة لتوفير الأراضي مختلفة المساحات لتطوير مجمعات للفلل السكنية التي تتصدر قائمة أولوليات المستثمرين والمشترين النهائيين نظراً كونها لا تشكل أكثر من 15% من إجمالي السوق في الوقت الراهن .

ووصف مصدر عقاري رفيع المستوى، فضل عدم ذكر اسمه، الأراضي المخصصة لتطوير الفلل السكنية ضمن المجمعات مكتملة البنية التحتية بالكنز النادر الذي لا يمكن التخلي عنه، مشيراً إلى أن الحل الوحيد لتجاوز هذه الحالة فتح مناطق تطوير جديدة ودعوة الشركات للاستثمار فيها .

وأوضحت مصادر عاملة في السوق العقاري المحلي في دبي أن قطاع الفلل السكنية يملك المقومات الاستثمارية الكافية لاستيعاب المزيد من المشاريع التطويرية في هذا المجال في ظل تنامي حركة الطلب على هذه المنتجات التي تصدرت قائمة اهتمامات المستثمرين والمشترين النهائيين لارتفاع عوائدها، في الوقت الذي لا يلبي المعروض الحالي في سوق دبي حجم الطلب الذي اتخذ منحنى تصاعدياً منذ العام الماضي، مشيرة إلى شح وحدات الفلل مقارنة بغيرها من المنتجات .

وعلقت المصادر على أن مشاريع تطوير مجمعات الفلل التي أعلن عنها مؤخراً مثل “كازا” ضمن “المرابع العربية”، وفلل “ليجاسي” و”ليجاسي نوفا” ضمن “جميرا بارك”، و”مدينة دبي المستدامة”، و”بالما ريزيدنس” في “نخلة جميرا”، و”أكويا من داماك”، و”صبحا” ضمن “مدينة محمد بن راشد” وما سيتم تسليمه قريباً ضمن مشاريع “نخيل” ستطرح أكثر من 5500 وحدة حتى نهاية ،2014 وهو رقم لن يلبي حجم الطلب الراهن .

وأعلنت “إعمار” عن طرح المرحلة الأولى من فلل “كازا” ضمن المرابع العربية والبالغ عددها 253 وحدة، بينما ستحضن “مدينة دبي المستدامة” نحو 500 وحدة، وطرحت “نخيل” 381 فيلا ضمن مشروع “جميرا بارك”، و104 فلل شاطئية في “بالما ريزيدنس” ضمن “نخلة جميرا”، كما طرحت “مجموعة دبي للعقارات” 350 وحدة للبيع قريباً، وغيرها من المشاريع .

وستسلم “نخيل” قبل نهاية العام الجاري 2013 نحو 2000 فيلا، في كل من مشروع “الفرجان130”  وحدة، و”جميرا بارك”700 وحدة، و”جميرا فيلدج” 615 وحدة، و”فينيتو” 177 وحدة، و”بدرة” 146 وحدة .

وأشارت المصادر إلى أن سوق الفلل السكنية تابع منذ بداية 2013 طريق التعافي والتحسن التدريجي الذي حققه في العام الماضي 2012 بمستويات نمو تراوحت نسبها حسب المناطق بين 20 و35%، كما سجل أفضل التعاملات بين مختلف المنتجات العقارية .

وقال الخبير العقاري مهند الوادية، المدير الإداري في شركة “هاربور” العقارية: “يعيش العاملون في سوق عقارات دبي حالة من الترقب بخصوص تسليم الوحدات الجاهزة ضمن المجتمعات المكتملة مثل “جميرا بارك” و”الفرجان” اللذين تطورهما “نخيل”، “مدن” الذي تطوره “مجموعة دبي للعقارات”، وطرح كل من مشروع المرحلة الثانية من فلل “كازا” ضمن “المرابع العربية” ومشروع “مدينة دبي المستدامة”، و”اكويا من داماك” للبيع .

وأوضح الوادية أنه نتيجة لارتفاع أسعار إيجارات الفلل السكنية بمعدل يتراوح بين 20 و25% خلال الأشهر ال12 الماضية، لجأ أغلبية الناس للشراء في محاولة لتخفيف وتنظيم نفقاتهم السنوية الخاصة بالإيجار خاصة في ظل تعليق قرار المصرف المركزي حول تحديد سقف التمويل العقاري .

وأضاف الوادية قائلاً: “واكب قطاع الفلل السكنية منذ بداية العام الجاري 2013 علامات التعافي التي سجلها خلال العام الماضي 2012 على صعيد التعاملات العقارية بشكل عام ومنحنى الأسعار بشكل خاص التي ارتقت بمعايير تطوير البنية التحتية ومرافق الحياة الاجتماعية للسكان” .

وأشار المدير الإداري في شركة “هاربور” العقارية إلى أن سوق العقارات في دبي يمر في الوقت الحالي بفترة القبول والتعافي، التي بدأ يستشرف بوادرها في العام ،2011 حيث شهدت أسعار أفضل مناطق الاستثمار في قطاع الفلل السكنية من حيث الأداء نمواً ملحوظاً في الأشهر الأخيرة، ومن المرجح أن تواصل أداءها الإيجابي نحو الارتفاع في الفترة المقبلة بنسبة تراوح بين 10 و20% .

تدفق السيولة

يتوقع أن يستمر تدفق السيولة في سوق العقارات بسرعة ووتيرة أكبر، في الوقت الذي بدأت شركات التمويل العقاري والممولون الاستثماريون بزيادة نشاطاتها الإقراضية مرة أخرى، وتعتبر هذه خطوة إيجابية للغاية وستشجع مزيداً من المشترين الذين يرغبون في الاستفادة من الفرص العقارية المتوافرة .

ويتراوح سعر بيع القدم المربعة في “نخلة جميرا” بين 1400 و1600 درهم، بينما تبدأ أسعار التأجير من 350 ألف درهم سنوياً وتنتهي عند مليون درهم سنوياً . بينما ارتفعت أسعار البيع في “ذا فيلا” لتتراوح بين 680 و700 درهم للقدم المربعة عند الحد الأدنى .

وحققت الفلل السكنية في مشروع “فالكن سيتي أوف وندورز” أداءً إيجابياً خلال الفترة الماضية من حيث معدلات الطلب، وتتراوح الأسعار فيه من 650 درهماً إلى 950 درهماً للقدم المربعة تعتمد على نوعية وجودة المواصفات وموقع الفيلا وإطلالتها .

ويتراوح سعر القدم المربعة في “فيكتوري هايتس” بين 850 و900 درهم . وتراوحت الأسعار في منطقة ال”إميريتس ليفينغ”، التي تتضمن كلاً من “ذا سبرينغ” و”ذا ليكس” و”ذا ميدوز” بين 850 درهماً للقدم المربعة، وفي “ذا سبرينغ” و1000 درهم للقدم في “ذا ليكس”، و1100 درهم للقدم في “ذا ميدوز” .

وتراوحت الأسعار في “المرابع العربية” بين 900 و1000 درهم للقدم المربعة .

قوى الطلب بدأت في الارتفاع

أكد الخبير العقاري مهند الوادية أن قوى الطلب بدأت في الارتفاع تماشياً مع زيادة وتيرة تعافي معظم الاقتصادات العالمية واسترداد المستثمرين من الأفراد والشركات ثقتهم بأداء القطاع والمستقبل، لافتاً إلى أن بعض الملاك الذين اغتنموا الفرص المميزة التي برزت خلال 2009 و2010 سيحققون نمواً متزايداً مع الوقت في رؤوس أموالهم . وتوقع المدير التنفيذي في “هاربور” العقارية، أن السوق العقاري في دبي سيمر حتى نهاية العام الجاري 2013 بفترة جديدة من التعافي وتجديد الثقة، حيث سيتقبل السوق المعطيات والديناميكيات الجديدة للقطاع، وسيكون هنالك تقبل عام للأسعار الجديدة للعقارات .

ASK THE AGENT.

Q 1: Given the recent rise in demand, are there any advantages now by buying “off plan”?
Michael P. – Dubai

A 1: Off plan opportunities should not be dismissed and an increasing number of astute buyers are buying properties which are nearing completion, usually within the ensuing six months.

These buyers are very discerning. They are usually looking for certain property types which they believe will be keenly sought in the future, and villas are now heavily in vogue for the “off plan” opportunists.

Relative to other property types, demand for villas has been grown rapidly in the last 18 months and, given the current short supply and limited number in the pipeline, that trend is expected to continue going forward.

By buying “off plan”, the buyer hopes to reap the benefits of price rises once the villa is completed and making an immediate return on investment of anywhere up to 20% just 6 months after purchase. The key is to picking the right asset type, in the right development at the right price.

Q 2. which would be the better investment, purchasing a 2 bedroom apartment in the Dubai Marina or something similar in JLT?
Marcus Z.

A 2. Apartments in Dubai Marina have witnessed strong capital appreciation of around 15% since the start of 2012. This growth is a continuation of a trend which began early in 2011 and we expect it to continue as demand for properties in prime locations continues to strengthen so, if purchased wisely, you are likely to enjoy healthy capital growth going forward.

You can purchase a good quality apartment in a well managed building for around AED1000 to AED 1,300 per sq. ft. Once owned, you can expect to pay around AED15 per sq. ft in service charges and can expect to generate anywhere between a net return of 5.5% and 7.0%.

Apartments in JLT have not fared as well as their Marina counterparts. While cheaper at anywhere between AED750 and AED950 per sq. ft., the rate of capital growth in JLT has been nowhere near that of the Dubai Marina. Service charges will be lower at around AED11 per sq. ft. and net rental returns of 5% to 7% can be achieved particularly if you purchase in one of the better quality buildings.

On balance, I believe Dubai Marina, particularly those buildings located within easy walking distance to the JBR walk, to be the better alternative.

Q 3. The Rental Scam in Dubai has been all over the news recently. What precautions should I take to ensure I don’t get scammed?
Mike H, Dubai

A 3.
1. If renting directly from the owner, verify the owners identity

2. Make sure the person claiming to be the owner actually does own the property

3. Utilize a standard form of contract. See www.ejari.ae/PublicPages/DownloadPdfTemplates.aspx

4. Ask to see the agent’s Dubai Real Estate Institute registration credentials or go to www.dubailand.gov.ae/English/Real_Estate_Licenses/EngLessons.aspx which displays a complete list of registered Real Estate Agents

5. If the broker is a signatory to the rental contract, make sure that you see a notarized Power of Attorney from the owner

6. Check out the Real Estate Company credentials by accessing www.dubailand.gov.ae/English/Real_Estate_Licenses/EngLessons.aspx

7. Ensure the name of the owner on the contract is the same as the owner on the title deed

8. Ask to see proof that Service Charges have been paid and are up to date

9. Make sure you register new rental contracts with the Land Department on www.ejari.ae/TenantCertificate/Tc_certificate_registration.aspx

10. Read the contract terms and conditions carefully and understand your rights and liabilities as a tenant. These can come directly from the landlord or imposed by the OA of the community you rented within.

visit : http://www.harbordubai.com/presspage.php?pg=press&cat=A&nid=223

The protection of tenants against unjust eviction

With the recent surge in rental rates in areas such as Dubai Marina, Downtown and The Palm, stories are starting to emerge of landlords wishing to evict tenants in order to, presumably, take advantage of the opportunity to place hefty rental increases on properties. This practice is not new and was around in the pre-recession period when rental increases desired by landlords were out of control.

Law No.33, Article 25(2) provides protection to the tenant by stipulating under which circumstances a tenant can be evicted.

If the landlord wishes to demolish the property or conduct construction which makes it impossible for the tenant to use the property, the landlord has grounds to affect an eviction.

Similarly, if comprehensive maintenance needs to be carried out on the property which cannot be undertaken while the tenant is in situ, the landlord can evict the tenant upon the provision of a technical report accredited by the Dubai Municipality.

Meanwhile, the landlord has the right to evict a tenant if the landlord wishes to use the property for his or her personal use and for the use by a next of kin. The landlord will have to prove that the landlord does not have access to an alternative property as a suitable alternative.

Finally, if the landlord wishes to sell the property, he or she is entitled to evict the tenant.

In all of the above cases, the tenant must be given at least 12 months’ notice of the eviction and the reasons and necessary documentation supporting the notice to evict, at least 12 months prior to the expiry date of the tenancy contract.

BY MOHANAD ALWADIYA
Managing Director
Harbor Real Estate.

UAE’s real estate market robust

DUBAI: Sentiment in the UAE real estate investment market improved during the second quarter (Q2) of 2012, boosted by the rising availability of funds for investments, reports RICS in its latest Global Commercial Property Survey.

On the investment side, purchaser enquiries rose for the second consecutive quarter and transactions are forecast to rise in the coming months. Significantly, expectations for capital values in the UAE for the third quarter show a modest increase for the first time since 2008.

According to the RICS survey, 16 per cent more respondents indicated that money available for investment in real estate increased during the second quarter of the year.

Meanwhile occupier demand, led by an active retail sector, continued its rise, though at a slightly slower pace.

New supply coming on to the office market adds to existing stocks so that despite the recovery in demand the oversupply situation continues to impact upon rental expectations.

Elsewhere, following on from strong first quarter results, the real estate market in North America and Canada has remained buoyant in both occupier and investor markets despite the global economic slowdown.

China and Hong Kong also appear to have relatively resilient occupier markets for the time being. However, once again, the survey shows a generally weaker picture across Europe, with signs of stress spreading from the periphery to other markets.

Greece, Spain, Portugal, France and Italy in particular showed signs of distress during this quarter of the year, with both sentiment and activity levels suffering on the back of elevated uncertainty.

Commenting on the latest survey results, Simon Rubinsohn, RICS Chief Economist, said: “It is encouraging that there are now some tentative signs of a turn in the real estate market in the UAE. At the moment, this is more visible in the investment market and it will take some time to work off the excess space that has built up in recent years.” “As a result, it may be premature to envisage any upturn in rent levels but after a torrid period, the indications are that that they are at least now close to stabilising,” Simon Rubinsohn added.

In a continuation of its recent strong performance and with a total value of over Dhs2 billion, Dubai’s Real Estate industry achieved the highest number of unit sales and corresponding total unit value for any month of July on record according to data sourced from the Dubai Land Department.

With 1,767 transactions, the industry saw over 193,629 sqm (2.084Mill sq ft.) of property units sold during the month showing demand for Dubai property units continues.

Consistent with recent trends, the top performing areas were Dubai Marina, Downtown and JLT where the combined value of the transactions from these areas accounted for approximately 67 per cent of the total value of unit transactions during the month.

“The recovery is certainly with us,” said Mohanad Alwadiya, Managing Director of Harbor Real Estate in Dubai. “Confidence is returning to the market and, when considering the latest reports regarding healthy profits and renewed activity by several leading developers, the industry is certainly looking vibrant again.”

Alwadiya was referring to announcements made recently by Emaar regarding an 82 per cent surge in profits in the first half of 2012 along with renewed interest in developing a townhouse project in Dubailand.

Nakheel has also returned strong profit growth for the first half of 2012 up 36 per cent from the same period last year.

The company, restructured as a result of the global financial crisis, is also planning new developments based upon the resurgence in demand for Dubai property.

“We have all been waiting for this time, when optimism based on growing confidence would return to the market,” said Alwadiya, who added, “The growth trend is looking very exciting.”

Dubai’s Real Estate industry achieve total value of over Dhs2bn

Harbor Real Estate in Brief:
Harbor Real Estate is a fully integrated real estate service provider based in Dubai and part of an established world class group of real estate companies since 2001. With a strong reputation and a veteran team with over 15 years of experience in the industry, Harbor Real Estate provides Integrated Marketing, Sales and Leasing Services, Innovative Property Supervision Management Services and Complete Property Inspection & Snagging services.

Having served over 5,000 satisfied customers, Harbor has an extensive clientele base that consists of public and private entities, major developers, private and institutional investors and owner-occupiers.

In 2009, Harbor Real Estate Brokerage established a quarterly real estate report “The Harbor Report”. This candid report covers the latest news, developments and trends in the real estate industry with an in-depth analysis of the latest topics and current affairs.

For More Information, please contact:
Lorie Ann Paul
Office Manager – Harbor Communications
T: +971 4 325 1616
Source Article from http://www.ameinfo.com/strong-july-dubai-real-estate-308114

Strong July for Dubai Real Estate

In a continuation of its recent strong performance and with a total value of over 2 billion dirhams, Dubai’s Real Estate industry achieved the highest number of unit sales and corresponding total unit value for any month of July on record according to data sourced from the Dubai Land Department.

With 1,767 transactions, the industry saw over 193,629 sqm (2.084Mill sq ft.) of property units sold during the month showing demand for Dubai property units continues.

Consistent with recent trends, the top performing areas were Dubai Marina, Downtown and JLT where the combined value of the transactions from these areas accounted for approximately 67% of the total value of unit transactions during the month.

“The recovery is certainly with us” said Mohanad Alwadiya, Managing Director of Harbor Real Estate in Dubai. “Confidence is returning to the market and, when considering the latest reports regarding healthy profits and renewed activity by several leading developers, the industry is certainly looking vibrant again”
Alwadiya was referring to announcements made recently by EMAAR regarding an 82% surge in profits in the first half of 2012 along with renewed interest in developing a townhouse project in Dubailand.

Nakheel has also returned strong profit growth for the first half of 2012 up 36% on 2011. The company, restructured as a result of the global financial crisis, is also planning new developments based upon the resurgence in demand for Dubai property.

“We have all been waiting for this time, when optimism based on growing confidence would return to the market” said Alwadiya, who added “The growth trend is looking very exciting”.

To read live news open this link: http://www.ameinfo.com/strong-july-dubai-real-estate-308114

I am domiciled in Germany and thinking of investing in an apartment in Dubai. I would rent out the property initially, and intend to use it myself when I retire. Can you advice me on what I should consider?

Q1: I am domiciled in Germany and thinking of investing in an apartment in Dubai. I would rent out the property initially, and intend to use it myself when I retire. Can you advice me on what I should consider?

A1: I am assuming that proximity to the beach would be preferable for you. The income you will receive from this investment will be greater since the majority of tenants aspire to live near a beach. It also opens up the option for short-term rentals. If the property is managed well by a professional agent, this strategy can provide you superior returns.

Jumeirah Beach Residence. Dubai Marina or the Palm Jumeirah all offer a sought-after lifestyle, while providing excellent amenities and entertainment options. These developments are very popular with holiday makers, residents and retirees alike. Quality properties are available in the range of Dh 800 per sq.ft to Dh 2,500 per sq.ft.

You should expect a minimum net rental return of around 7%, which makes for a solid investment in preparation for outright ownership upon your retirement. Diligence is required with factors such as location, the developer’s record, quality, service fees, building management and the existence of a functioning owner’s association.

Q2: There is news that Dubai’s real estate decline has bottomed out and excellent opportunities exist in villa investment. I am looking for a villa in the Dh 3 million to Dh5 million price range. Can you make a recommendation?

A2: After years of decline, research shows that prices for villas in Dubai are starting to stabilize and have even increased in sought-after neighborhoods.
A fair proportion of the demand is focused on locations such as Arabian Ranches, Palm Jumeirah, Emirates Living communities (i.e The Springs, Meadows and Lakes) and Emirates Hills, More affordable villas can be found in developments such as Falcon city, The Villa project, Sports City and Motor City in Dubailand, where prices are often up to 30% less than in established communities.

The Villa Project in Dubailand has become a much sough-after community. The primary attraction of buying a unit there is that it offers good value for money. One can purchase a large, brand new villa at a relatively lower price in comparison with most similar-sized properties in other parts of Dubai.
Superior value for money has been reflected in very healthy capital gains for owners. A 4-bedroom unit in The Villa cost Dh1.9 million in August 2011, but the same unit today is worth Dh2.8 million. Likewise. Rentals have also gone up. A 4-bedroom villa that used to be rented for Dh 120,000 in August last year is now available for rent at Dh 165,000.

Q3: Will the prices go up or down in the rest of 2012:?

A3: Overall stability has returned to the market as far as prices are concerned, while good quality developments have witnessed price appreciation and increase in rents. The villa segment, in particular, has seen sales prices and rents increase mainly due to a combination of increased demand and relatively limited supply. Villa price increased mainly due to a combination of increased demand and relatively limited supply. Villa price increases in Q1 2012 versus the prior quarter were in the range of 5 to 12%, depending on the development. Top performers were the The Villa Project, Emirates Hills and Arabian Ranches.

Apartments rates around the city have generally stabilized as well. However, some areas such as Silicon Oasis, International city and Dubai Investments Park will remain under pressure due to new supply added to a segment which is already oversupplied. Having said that, locations renowned for their lifestyle appeal such as Dubai Marina. JLT and JBR, or the more affordable and up and coming Skycourts, have shown a lot of promise with quarter-on-quarter increases of 3% to 5%.

http://www.harbordubai.com/press.php?pg=press&nid=202

Great News for All Palm Jumeirah Investors

Villas and Apartments at the Palm Have surely outperformed similar properties in Dubai

By Mohanad Alwadiya
Special to properties

Property owners at the Palm can now breathe a little easier. On the average, villas have increased in value by 23%year –on- year at the end of the first quarter of 2012.Some villas have even managed to reach their pre-recession values. This performance outstrips the market average where villa values are estimated to have grown to around 13%. Apartment prices in Palm Jumeirah increased by 9% to 13%, depending on the configuration, easily outperforming the average price increase in similar properties across the emirate.
But a project will never attain its true value until its completed .Nakheel, fresh from sorting out its debts woes announced a first quarter 2012 profit almost $100 million causing some eyebrows to raise, not just in amazement at the embattled developer’s comeback, but in curiosity about what’s in store at The Palm.
The answer lies in the project known as Palm Views East and Palm Views West. They will comprise of 190 studios catering to a ‘younger occupier ’demographic. In a strategy seemingly aimed primarily at investors instead of owner-occupiers, Nakheel will be charging around Dh1 million for each of the studio properties. Each apartment has an approximate gross area of 500 square feet. While definitely more affordable than the traditional Palm property, approximately priced at Dh2,000/sq.ft., these studios continues to reflect the premium expected from such a location. If an investor intends to retrieve a net return of 7% on a studio, he would be renting the same for around Dh85, 000 to Dh90, 000 per year, depending on service charges. The units are not outrageously expensive (check out a studio in a comparative location in Hong Kong) but not exactly cheap either. Nakheel expects to hand over the apartments, along with a selection of retail and food outlets, in the first quarter of 2014.

If you are a current property investor in the Palm, this is great news. The Palm’s overall performance and these new projects offering residential and retail spaces are sure to attract more people into The Palm. Nothing drives investment more than confidence.
The writer is the Managing Director of Harbor Real Estate

Handy Hints
• Apartment prices in Palm Jumeirah increased by 9% to 13%
• Villas increased in value by 23% by the end of the first quarter in 2012
• The Palm Views East and West cater to a “younger occupier” demographic

Will the prices of 2008 ever come back, and if so, when?

Mohanad Alwadiya
Managing director of harbor real estate and part-time instructor at the Dubai Real Estate Institute.

Q1. Will the prices of 2008 ever come back, and if so, when?

A1. Dubai real estate face values fell, on average, by 50% during the recent global recession. In some area, it was closer to 33%, and in others, closer to 65%, depending on the location an proerpty type.
For smiplicity’s sake, however, let’s assume that 50% is the representative value.
An investment needs to grow at approximately 7% per annum, compounded for 10 years to double in face value. Assuming your property consistently appreciates at 7% per annum, you would need to wait approximately 10 years for the face value of your real estate asset to double.
Many factors will contribute to this growth, including the pace of global economic recovery, regional economic and geopolitical factors, and of course, Dubai’s own growth strategies.
Don’t forget that one of the advantages of investing in real estate is that it can provide you a regular income and capital growth. Some properties in dubai today are returning between 7% and 9% net to the owner. This type of return is hard to match anywhere else.

Q2. I’m looking to rent a house, but I found that it has district cooling. Is this something good or bad?

A2. District cooling for the provision of chilled water has emerged globally as a way to provide cooling in a more environmentally sensitive way. Aside from the obvious benefit of having chilled water. Especially in the summertime, it helps in saving on the costs of electricity which will be reflected in lower DEWA bills for tenants.
However, the DEWA savings will be somewhat offset, as the overall utility chares of units that are equipped with chilled water district cooling will be slightly higher, since they include expenditures for fixed operating costs via the application for the appropriate consumption charges.
Most units which are serviced by chilled water district cooling are still offered at lower rental rates. If you look at newly-completed projects such as Skycourt, Rita and Moto Ciry, which provide this form of service, the affordability o units in these properties is enhanced by a number of elements, including more energy efficient cooling.

Q3. I would like to invest in a Two-bedroom apartment in Burj khalifa, but I’m not sure if that is a sound decision or not. What’s your advice?

A3. I am assuming that you are not referring to an apartment at the Armani Residence, and you are taking a long-term view of your investment.
The rate of return will depend on a number of factors, including the initial purchase price, cash inflow from the rent, cash outflow from the charges associated with maintaining the property and your projected capital growth.
Two-bedrooms (with maid’s room) in the Burj Khalifa are being advertised for around Hd3,000 per sq.ft., depending on the floor and view. Therefore, you will be looking at an outlay of approximately Dh 6 million for a reasonable-sized apartment. Service charges will be around Dh33 per sq.ft., so you will need to cash out around Dh66,000 annually.
Assuming you wish to achieve a minimum of 5% net rental return, you would need to charge around Dh366,000 per annum or Dh30,500 per month. Values in Burj Khalifa have virtually bottomed out and there have been positive signs of capital appreciation over the last 12 months. Barring a collapse in the credit markets and the recurrence of a global recession, you could reasonably expect an average capital growth of around 7% over the next 10 years.
This is particulat investment can be very lucrative. You will be investing in an architectural icon which will always give some measure of security because of its apparitional qualities, that even after taking a long-term view, the risks would appear to be of secondary importance to its value.