Mohanad Alwadiya

ASK THE AGENT

I am moving to Dubai and a friend has suggested I live in the Greens or The Views. What would be your advice?

Both The Greens and The Views are very nice places to live in. Situated adjacent to the Emirates Golf Course on Sheikh Zayed Road, they are very well located with all that in Dubai has to offer within easy driving distance.

They offer very nice lifestyle with excellent amenities, retail and dining alternatives in a very well-planned development. If you are lucky, you may be able to procure a view overlooking the Emirates Gold Club Wadi course. Very picturesque indeed, particularly in the evenings.

You will have a wide choice of studio; 1, 2 or 3-bedroom apartments in buildings of varying standards with annual rents ranging from about Dh60K to Dh195K.

If you are thinking of purchasing a property, the time is right as the area has shown excellent capital appreciation over the last year or so. Sale prices will range from around Dh850K for a studio apartment to as much as Dh3 million for the most luxurious three-bedroom apartment.

All in all, great places to live.

Hello, when I tried ti renew my rental contract, my landlord tried to increase my rent by 15%. I consulted with RERA and proved to him that he cannot do this, and now he has instructed me to vacate my apartment because he wants it for a family member. Can he actually do this?

These types of situations are occurring more frequently now that the market is picking up.

Law No. 33, Article 25(2) is very clear and provides protection for you, the tenant, by stipulating under which circumstances a tenant can be evicted.

First of all, the landlord must give you at least 12 months notice of eviction and the reasons and neceary documentation supporting the notice to evict.

Regardless of whether his intention is to use the property for himself, a relative or a friend, he would still need to provide you with a notice of eviction 12 months prior to the effective date.

In this instance, you have every right to remain in the apartment as a paying tenant if you wish to do so.

Some news regarding the return of long queues at project launches, flipping of properties and double digit growth is starting to sound like a bubble might be developing. Is the current growth sustainable?

Dubai’s real estate recovery following the global financial crisis has consolidated from a surge in 2011 that had the Arab Spring and other extraneous events as catalysts, into a trend as evidenced by a strong 2012 performance, with momentum continuing into the first quarter of 2013.

The sustainability of the recovery is being underpinned by an economy which is steadily strengthening, showing strong growth of anywhere between 4% to 4.5% of the GDP, mainly driven by strong performances in the tourism and retail sectors with trade and logistics also growing significantly. Property recovery is being fuelled by growth in these core areas of the economy aided in part by economic or geopolitical problems being experienced elsewhere in the world.

In addition, there is no doubt that investors have returned to Dubai which is being seen as favorable compared to a weak Eurozone, a slowly recovering US and uncertainty regarding the true state of the Chinese economy.

Expert Eye: Service charges in your control

The issue on service charges never really seems to go away. Virtually every owner or tenant in Dubai has, at some stage, experienced very poor service delivery while the charges associated with even average levels of service have been unacceptable to any right -minded person. The reason why this situation has occurred in many cases is the lack of competition, transparency arid accountability in the appointment and conduct of some service companies.

The establishment of owners associations (OAS) has long been seen as one way to increase the efficiency and effectiveness of service providers. However, in many cases, owners have had a low participation rate in the management of their buildings while many

developers have adopted the role of building management as a profit stream post-completion.

For those properties that have functioning OAs, the new Investor Protection Law, due for implementation in 2015. will strengthen the legal status of OAs by allowing them to operate as separate legal entities when conducting their business. This move can only further
enhance the legal standing of an OA when it goes about selecting, appointing and auditing service suppliers.A well-functioning, legally empowered OA will go a long way in ensuring that owners get what they pay for with regard to service providers.

As with any service, the rate you are charged will depend on the level of service you are receiving along with the configuration of your building. For reference, service charges vary from Dh10.5 per sq.ft. for projects in Dubailand, Dh15 in The Greens, Dh15 in Dubai Marina up to Db22 in Downtown Dubai. There are many factors at play which will determine the rate charged.

Regardless of what is being paid, the objective of any OA must be to control costs and improve the efficiency of service providers. This is one way by which OAs play a very important part in the development of a mature real estate industry and, by having a legal structure to facilitate the representation of owners’ interests in the management and operation of their property assets, help fuel investor confidence by ensuring services are provided in an efficient and effective manner which then helps maximize investor returns, thereby contributing to growth in property value.

برنامج تدريبي عن إدارة العقارات بالغرفة

اختتمت أمس فعاليات البرنامج التدريبي حول إدارة العقارات الذي نظمته لجنة التطوير العقاري بالغرفة بالتعاون مع معهد دبي العقاري التابع لدائرة الأراضي والأملاك بدبي خلال الفترة من التاسع والعشرين وحتى الثلاثين من سبتمبر الجاري
وأشار شهاب بن يوسف بن علوي رئيس لجنة التطوير العقاري بغرفة تجارة وصناعة عمان الى أن هذا البرنامج يأتي كجزء من أنشطة وفعاليات عدة تعدها وتقوم عليها لجنة تطوير القطاع العقاري بالغرفة كون قطاع العقارات قطاعا واسعا ويشهد تطورات ملحوظة مضيفا بأن البرنامج يهدف إلى إبراز أهمية الاستثمارات المدرة للدخل، والتعريف بمفهوم إدارة العقارات، وتطوير فهم مفصل وكامل لعملية إدارتها، إضافة إلى المهام الدورية لإدارة العقارات، والعوامل المساندة لإداراتها، كما تطرق البرنامج إلى عوامل التسويق للعقار والمشاكل التي قد يواجهها ملاك ومديرو العقارات وطرق تجنبها أو حلها واوضح بأن البرنامج وفر ملخصا شاملا للعوامل الأساسية لمهنة إدارة العقارات، وقدم نصائح وأدوات عملية ونظرية من شأنها المساعدة في زيادة عوائد الإيجار، وتقليل المخاطر والأضرار المتعلقة بإدارة العقارات. يستهدف البرنامج فئة المسؤولين عن توفير وظائف في مجال إدارة العقارات، أو الذين يتطلعون ليصبحوا ملاك عقارات مدرة للدخل مستقبلاً
وحول البرنامج عبر المدرب مهند الوادية عن سعادته بالمشاركة، مشيراً إلى أن البرنامج أقيم سابقاً في عدة دول إلا أن عوامل عدة ساهمت في جعله مختلفا هذه المرة، منها على سبيل المثال التنظيم الجيد والحرفي للبرنامج من قبل غرفة تجارة وصناعة عمان، إضافة إلى الحضور الواعي والمدرك لواقع القطاع العقاري والذي أثرى البرنامج بالمشاركات المنطقية التي تنم عن وعي ورغبة في التعلم والاستفادة من تجارب الآخرين
أما فيما يخص القوانين المنظمة للقطاع العقاري بالسلطنة فيرى الوادية أنها مشابهة جداً للقوانين المعمول بها في دول الجوار ،مضيفا إلى أن مجال التحسين موجود دائما طالما هنالك رغبة من صناع القرار في تطوير البنية الاساسية المساندة لمجال إدارة العقارات. وأشار المدرب مهند الوادية إلى أنه وبالنيابة عن معهد دبي العقاري يطمح أن يكون البرنامج بداية شراكة استراتيجية طويلة الأمد مع غرفة تجارة وصناعة عمان

لجنة التطوير العقاري بالغرفة تنظم برنامجا تدريبيا حول إدارة العقارات

أقامت غرفة تجارة وصناعة عمان ممثلة بلجنة التطوير العقاري برنامجا تدريبيا تحت عنوان “برنامج تدريب إدارة العقارات” وذلك بحضور شهاب بن يوسف بن علوي رئيس لجنة التطوير العقاري بالغرفة وعدد من أعضاء مجلس الإدارة، ورجال الأعمال والمهتمين بقطاع العقار بالسلطنة
يوفر البرنامج ملخصا شاملا للعوامل الأساسية لمهنة إدارة العقارات، ويقدم نصائح وأدوات عملية ونظرية من شأنها المساعدة في زيادة عوائد الإيجار، وتقليل المخاطر والأضرار المتعلقة بإدارة العقارات. يستهدف البرنامج فئة المسؤولين عن توفير وظائف في مجال إدارة العقارات، أو الذين يتطلعون ليصبحوا ملاك عقارات مدرة للدخل مستقبلايهدف البرنامج إلى ابراز أهمية الاستثمارات المدرة للدخل، والتعريف بمفهوم إدارة العقارات، وتطوير فهم مفصل وكامل لعملية إدارتها، إضافة إلى المهام الدورية لإدارة العقارات، والعوامل المساندة لإداراتها، كما تطرق البرنامج إلى عوامل التسويق للعقار والمشاكل التي قد يواجهها ملاك ومديرو العقارات وطرق تجنبها أو حلها
يقدم البرنامج المدرب مهند الودية من معهد دبي العقاري التابع لدائرة الأراضي والأملاك بدبي ويستمر لمدة يومين متواليين بمبنى الغرفة الرئيسي بروي، يذكر أن هذا البرنامج يأتي كجزء من أنشطة وفعاليات عدة تعدها وتقوم عليها لجنة تطوير القطاع العقاري بالغرفة

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.

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

Survivors of the Storm

Harbor Real Estate is one of the Dubai property market’s success stories. Managing Director, Mohanad Alwadiya, speaks to Property about the company’s evolution and growth.

Flexibility and the ability to adapt to change were the qualities that helped Harbor Real Estate to weather the stormy conditions of the global downturn. Headed by Mohanad Alwadiya, who has played a major role in making the firm one of the top real estate players in Dubai, Harbor even managed to expand its business both during and after the crisis. The company continues to surge ahead even as the world is busy discussing the possibility of yet another financial downturn. Headed by Mohanad Alwadiya. Who has played a major role in making the firm one of the top real estate players in Dubai., Harbor even managed to expand its business both during and after the crisis. The company continues to surge ahead even as the world is busy discussing the possibility of yet another financial downturn.

The Beginning
The history of Harbor Real Estate began in 2001 when a group of investors and entrepreneurs got together and decided to venture into real estate, long before the boom days of Dubai’s real estate sector. “Real estate has always been an option for investors looking for long-term capital appreciation,” says Mohanad. “When the boom started towards the end of 2006, investments picked up pace and so did development projects. The group of investors realised the need for an institutional real estate service provider that could offer transactional services such as marketing, sales and leasing and property management. Thus, Harbor Real Estate was born. I joined Harbor in November 2007.”

Today the firm handles three groups of services – transactional services, property management and property inspection.
“Transactional services include marketing, sales and leasing,” says Mohanad. “You need to have a strong marketing foundation to be able to sell or lease a product.” He adds that, while property management is all about representing the landlords and managing their portfolio, the property inspection service, which is the latest addition to Harbor’s profile, helps investors, buyers and users to ensure they receive their units in good condition without any compromises.

Change of strategy
Harbor was busy managing a number of portfolios when the global financial crisis struck the property market. It was time for Harbor to take another look at its strategy. “By the end of 2008 things started changing and we really needed to shift gears and become more flexible in order to adapt to the crisis,” says Mohanad. “Otherwise we would have ceased to exist — a lot of companies were shutting down left, right and centre,” he explains, adding than he thinks Harbor Real Estate saw the crisis coming earlier than many others. “ I sent out emails to clients in early 2008 warning them not to invest in property costing more than Dh1,000 per square foot, whereas the average price at that point in time was around Dh2,000 per square foot”.
Harbor was hired by many developers, including entities of Dubai Holding , to undertake market research. The firm surveyed investor feedback and market dynamics in terms of demand and supply, concluding that there was a bubble and it was about to burst.

New Opportunities
Armed with this foresight, Mohanad says that Harbor was prepared to face the challenge ahead. “While many in the industry chose not to react to the upcoming situation, we did react to it and began devising new services. We didn’t downsize or reduce salaries at all.” Sensing that leasing would be the most active segment of the market after the crisis, Harbor started to expand its leasing team to suit the new market conditions. The number of Harbor employees grew from 14 before the downtown to 40 after the crisis and the company is still continuing to expand.
“Following the crisis, leasing has been dominating in terms of volume. But sales get higher returns. We have been doing very well on both fronts. “Because of the long-term relationship we had with our investors, we managed to keep them with us and help them to invest during the crisis, because a lot of opportunities actually emerged during that time. We were ready to help them make the most of those opportunities,” says Mohanad
According to Mohanad, in more developed real estate markets, people have a ‘family’ real estate agent in the same way as they might have a family doctor or lawyer, but it doesn’t work that way in this part of the world. Harbor is now trying to cultivate that ‘family’ real estate model. “We already have many investors who deal with our company exclusively,” says Mohanad. Harbor’s strategic approach led to it also being part of some sizable sales deals during the financial downturn. These included the sale of the landmark Hard Rock Café plot, the sale of 41 apartments in a Tameer Holding project in September 2009, and the sale of 36 apartments in Jumeirah Lakes Towers in April 2010. It also sold units at ETA Star projects. “Leasing was a major revenue generator during those days and the firm struck a number of deals with a lot of end-users and corporate giants such as Emirates, Emirates Catering, and so on. Even during the crisis, we were still getting about 350 leads weekly. We get a lot of referrals. In a service industry, you get most of your business through referrals,”says Mohanad.
The Current Market Turmoil
Almost three years after the major economic downturn hit, the global financial markets are once again under pressure. Mohanad admits that investors both regionally and globally are now extremely nervous. “Given the deep and far-reaching effects of the recession and recent negative financial developments in the US and European markets, this nervousness is as understandable as it is unavoidable. People have lost confidence and trust in the global economies and worldwide headlines drawing attention to US debt woes simply adds fuel to their skepticism,” he says. He adds that the political instability that areas of the Middle East have been enduring for the past few months has left most investors confused about where to invest. However he points out that, despite all the challenges and criticism the city faced, Dubai managed to weather the recession extremely well and is now expected to become the focus for those who wish to invest in a safe and solid .”The rest of the world will look on with envy’ he says.

Advantage Dubai
Realising the need to ignite a recovery in the real estate sector, the government is planning to introduce a three-year residency visa to those who invest in Dubai, according to some media reports. While the details of this rule are not clear yet, Mohanad says that this is a positive move to reinstate confidence in potential investors. “For the past three years, the challenge has been to keep pace with the rapid development of the industry.
“Investors, especially those from overseas, need to feel that their rights will be protected and that a resolution will be accessible, equitable and timely if any dispute arises. The opportunity presents itself now for the rapid development of a legal framework that investors feel they can rely upon if things go awry ever again,” he adds

Days Ahead
Despite the fears of yet another recession, the Dubai property market has, over the past few months, seen some activity, with banks being more liberal as far as lending is concerned . Mohanad believes that the flow of credit into the property market during the last quarter of this year should speed up its pace as more mortgage providers and investment financiers start lending again. “The recommencement of financing by Tamweel was a very positive step and will hopefully encourage more lenders to start injecting liquidity to support the end-users,” he says, adding that he believes the property market in Dubai will go through a period of acceptance and renewed confidence in 2012. “Dubai has learnt from the past three years and will end 2011 stronger, smarter and more mature,” Mohanad concludes

«هاربور» توقعت زيادة بطيئة في «وسط مدينة دبي» و«مرسى دبي

5٪ انخفاضاً في الإيجارات خلال الربع الأخير من 2010

المصدر: سامح عوض الله – جريدة الامارات اليوم

التاريخ: 05 يناير 2011

أفاد تقرير لشركة «هاربور» العقارية، بأن «الإيجارات السكنية في دبي استمرت في انخفاض تدريجي خلال الربع الأخير من عام 2010 بنسبة بلغت 5% مقارنة بالربع الثالث من العام نفسه.

وتوقع أن تشهد عوائد الإيجارات السكنية ارتفاعاً طفيفاً نهاية العام المقبل، مع استقرار الأسعار في السوق، بسبب انخفاض رسوم الخدمات، موضحاً أن زيادة العرض من الوحدات السكنية، هي العامل الرئيس الذي يحدد نسبة ووتيرة الانخفاض في الأسعار خلال العام المقبل.

وتشير إحصاءات الشركة إلى أن متوسط إيجار «الأستوديو» يبلغ حالياً 38 ألف درهم، فيما يبلغ متوسط إيجار شقة مكونة من غرفة نوم وصالة 67 ألف درهم، وشقة مكونة من غرفتي نوم 85 ألف درهم، وشقة مكونة من أربع غرف نوم 119 ألف درهم.

وتفصيلاً، أفاد تقرير شركة هاربور بأن «العديد من المستثمرين من فئة الأفراد والوسطاء العقاريين، خفضوا أسعارهم تماشياً مع المستويات الجديدة، وجذب مستأجرين لتأمين أي قدر ممكن من الإيرادات»، لافتاً إلى تقديم مٌلاك عروضاً خاصة لترغيب المستأجرين الحاليين في تجديد عقود إيجارهم، تتضمن خفضاً في الإيجار، أو توفير خطة دفع ميسرة تمتد حتى 12 دفعة، وخدمات صيانة مجاناً، وغيرها.

وتوقع أن تواصل إيجارات الشقق في مناطق مثل «ديسكفري غاردنز»، و«المدينة العالمية» تراجعها خلال الفترة المقبلة من العام الجاري، بسبب اكتمال مشروعات جديدة عدة تلائم المستأجرين من فئة الدخل المتوسط، مشيراً إلى أن ذلك سيحفز مستأجرين عديدين على الانتقال إلى تلك المشرعات، للاستفادة من أسعارها المنخفضة ومرافق خدماتها الحديثة.

وأوضح أن من أبرز المشروعات التي ستسلم خلال الربع الأول من عام ،2011 مشروع «غروب» في منطقة مردف، الذي طورته شركة دبي للعقارات، ومشروع «سكاي كورتس» في منطقة «دبي لاند» والذي يتكون من 2836 شقة. كما توقع أن تشهد مناطق مثل «وسط مدينة دبي»، و«مرسى دبي»، و«روعة الإمارات» نمواً بطيئاً، لكنها ستشهد زيادة بطيئة وثابتة في الأسعار بحلول نهاية العام الجاري، في حين ستشهد الوحدات السكنية في مناطق مثل: «أبراج بحيرة جميرا»، و«الخليج التجاري»، و«ذا فيلا»، و«فيكتوري هايتس» في مدينة دبي الرياضية، تحسناً مرهوناً بسرعة معالجة قضايا البنية التحتية، والمرافق الحيوية في تلك المناطق. وقال المدير التنفيذي لشركة هاربور العقارية، مهند الوادية، إن «رسوم الخدمات المرتفعة لا تزال عاملاً سلبياً يحرق نسباً عالية من قيمة رأس المال، وعوائد الإيجار السنوية للمُلاك»، متوقعاً أن تنخفض معدلات تلك الرسوم في عام ،2011 بسبب مبادرة مؤسسة التنظيم العقاري في دبي (ريرا) بتفعيل قانون الملكية المشتركة خلال نهاية النصف الأول من عام .2010

وأضاف أنه «تم أخيراً الكشف عن رسوم الخدمات في مشروع (سكاي كورتس) في (دبي لاند)، والتي تبلغ 7.9 دراهم لكل قدم مربعة سنوياً، وهي أدنى نسبة مقارنة بأي برج سكني آخر في دبي»، مفصلاً أن مالك شقة مساحتها 1000 قدم مربعة في المشروع سيدفع 7900 درهم في السنة، أو 1975 درهماً في كل ربع رسوم خدمات. وقال إن هذا العامل سيزيد عوائد الإيجار لملاك الشقق في مشروع سكاي كورتس..

لمشاهدة متوسط أسعار الإيجارات في إمارة دبي يرجى الضغط على هذا الرابط: http://media.emaratalyoum.com/images/polopoly-inline-images/2011/01/AR14-050111-111.jpg

Stable prices push sales up at Springs, Meadows

Communities have highest sales and leasing activity due to stable prices and rentals, say agents.

Prices of villas in Emirates Hills range between Dh10 million and Dh25m. (SATISH KUMAR)

The Springs and The Meadows have seen the highest sales and leasing activity within Emirates Living since the beginning of this year owing to stable prices and rentals, according to real estate agents.

Vineet Kumar, Head of Sales, Dubai, Asteco Property Management, said: “The Springs and The Meadows have seen increased sales and leasing activity since the beginning of this year as ongoing sales prices and rental rates for these properties have been stable for the past two months.”

According to Mohanad Alwadiya, Managing Director, Harbor Real Estate, between January 1 and March 18, The Springs and The Meadows recorded 66 sales transactions, marking a 50 per cent increase for the corresponding period in 2009.

He said between January 1 and March 18 last year, The Springs and The Meadows saw 44 sales transactions and during October 1 to Dec 31, 2009, 89 sales transactions were recorded.

Sales transactions up

Alwadiya disclosed that The Greens, The Lakes and The Views recorded 79 sales transactions between January 1 and March 18 this year, marking a 103 per cent increase over the corresponding period last year. “The Greens, The Lakes and The Views recorded 39 sales transactions between January 1 and March 18 last year and a total of 109 sales transactions in these communities between October 1 and December 31, 2009,” he said.

Paul Musson, Residential Sales Consultant, Better Homes, said current sale prices for a two-bedroom and three-bedroom apartment with study and maid’s room in The Springs were at Dh1.1 million and Dh2.2m, respectively. “In The Meadows, current sale prices for a three-bedroom and five-bedroom villa with a study and maid’s room are around Dh2.8m and Dh5.4m,” he said.

“In The Lakes, prices are currently at Dh3m and Dh4.5m for a three-bedroom villa with a study and maid’s room and for a five-bedroom villa with a study and maid’s room, respectively,” he added. In Emirates Hills, prices of villas range between Dh10m and Dh25m, but Musson said the villas are not selling at Dh25m. In The Greens, a one-bedroom apartment is currently selling for Dh680,000 while a three-bedroom apartment is selling for about Dh2.8m.

Musson said the bottom-end of the apartment market is still falling slightly in the studios and one-bedroom apartment segments. “The two-bedroom apartments are still holding up.”

He said demand from buyers in the market today was largely for villas and was no longer just price-driven. “Villas are what buyers want now and not just at the best price. Early this year, buyers were only looking for the best price, now however, end-users want the best unit for the best price.”

Rentals on a slide

Tamara Stubbs, Residential Leasing Consultant for Better Homes, said: “Annual rentals in The Springs range from Dh90,000 for a two-bedroom villa to Dh150,000 for a full lake-view three-bedroom villa.”

She said in The Meadows, rents ranged from Dh180,000 per annum for a standard three-bedroom villa to Dh375,000 per annum for a five-bedroom to six-bedroom villa. In The Lakes, annual rents for a three-bedroom townhouse were at Dh130,000 while for an upgraded three-bedroom villa, rents were at Dh160,000.

In Emirates Hills, annual rents are at Dh280,000 for a four-bedroom villa and at Dh400,000 for a four-bedroom to five-bedroom villa. In Dubai Marina, annual rents are at Dh60,000 for studios to Dh250,000 for a four-bedroom penthouse. In The Greens, annual rents are an approximate Dh40,000 for studios and Dh120,000 for a four-bedroom villa.

Stubbs added: “You can get higher rents for different units depending on the finishing and interiors.”

Alwadiya said the current rental prices within the development are lower than those prevailing six months back by an average of five per cent to 10 per cent. “Sale prices in The Greens and The Views are lower by 13 per cent to 15 per cent. But for villas, prices are slightly higher by around five per cent.”

He added: “Due to the decrease in rental and sale prices by around 35 per cent and 45 per cent that this area witnessed during the past 15 months, we have noticed an increase in demand for all the communities within Emirates Living with a focus on The Greens, The Views and The Springs. This trend was carried over during the first few months of 2010.”

Sahali Saleem, Residential Leasing Consultant, Al Barsha, Better Homes said among the communities, The Greens and The Springs had the lowest number of rentals when compared to the other sub-communities in Emirates Living because of the ongoing road construction.”

Occupancies within the Emirates Living district vary from one community to another. According to Harbor Real Estate, occupancy in The Greens is highest at 85 per cent, followed by The Springs with 80 per cent occupancy levels.

The Views and The Links have about 75 per cent occupancy followed by The Meadows which have 80 per cent occupancy. The Lakes currently has about 60 per cent while Emirates Hills has about 55 per cent occupancy levels.

“The rate of people moving in and out of the development is almost equal. Emirates Living did not witness a sharp drop or a drastic increase in population compared to the same period last year. This was mainly fuelled by the influx of new tenants who upgraded their homes taking advantage of the newly reduced prices,” said Alwadiya.

High occupancy levels

According to Asteco, occupancy levels within Emirates Living have been given a push and currently stand at 75 per cent overall levels as many owners held back selling their properties and instead looked to lease them. “Occupancy is quite high as a majority of inventory has been handed over for more than a year. In our estimate, the occupancy level is above 75 per cent as a lot of inventory has been held back for sale and owners have decided to lease their villas. This has given a push to occupancy levels,” said Kumar.

The villas only pay community fees for the use of common facilities such as parks, pool, landscaping, use and upkeep of roads. “This fee ranges from Dh7,500 to Dh16,000 a year. Maintenance of villas, like any other property, is on the owners’ account,” added Kumar.

Alwadiya said: “The community service fee charges for villas and townhouses are more or less the same. For The Greens, service charges continue to increase. However, the option of payment over four instalments was highly appreciated by many owners in the development.”

Asteco said the overall buyer profile of Emirates Living was a mix of families from all over the world. “The development has a strong presence of clients from Europe, Asia, the GCC, Lebanon and Iran,” said Kumar. “The community is ready and offers convenience for occupants. Villas of two-bedrooms to five-bedrooms are popular for family living.”

Alwadiya said: “For The Lakes, The Meadows and The Springs you cannot define a buyer profile. Nowadays we see different nationalities with different professional and income profiles moving into these areas.”

In Emirates Hills, high demand continues from wealthy South Asian, Russian and GCC nationals. “All of these buyers come with very high budgets and ready cash to pay for their luxury dream homes,” he said.

Master plan overview

Emirates Living comprises The Springs, The Meadows, The Lakes, Hattan, Ghadeer, Montgomery and Emirates Hills. The Emirates Living district also comprises The Views and The Greens.

The Greens are mid-rise apartment blocks comprising nine projects in all – Al Sidr, Al Jaz, Al Nakheel, Al Ghaf, Al Samar, Al Dhafrah, Al Arta, Al Thayyal and Al Ghozlan.

The Views are apartment buildings comprising eight projects in all – Arno, Travo, Turia, Una, The Fairways, The Links, Golf Towers and Mosela.
The Springs comprises townhouses built around man-made lakes. The properties in The Springs range from two-bedroom to four-bedroom townhouses and are located close to The Greens, The Lakes and The Meadows.

The Meadows are detached villas offering double-storeyed villas from three to seven rooms, each surrounded by a garden and garage.

The Lakes are detached villas and townhouses comprising Deema, Furat, Maeen, Zulal and The Ghadeer which was the last to be handed over recently. The Lakes has been built around a lake, located near the Emirates Golf Club and The Greens development. Initially, properties in The Lakes were only for rent, but in 2007, Emaar offered freehold titles to the properties, with first refusal granted to the then existing tenants.

Emirates Hills are luxury-detached villas that have been sold as plots to investor to build their properties on.

The community also includes schools such as the Dubai International Academy, Emirates International School, Dubai British School, Regents School, a community centre, restaurants and supermarkets, children’s playgrounds, and communal swimming pools

Emirates Living residents also have access to the Emirates Hills’ Montgomerie Golf Course and its Golf Academy which includes a clubhouse and other facilities.

Sales show improvement in key realty projects

Downtown Dubai has the highest number of listings by most realty agents.

Downtown Dubai, Emirates Living, Dubai Marina and Dubailand top the listing chart for sales and leasing queries, according to agents.

“Downtown Dubai has the highest number of listings by most realty agents in Dubai. The second popular area is Dubai Marina with a large focus on Jumeirah Beach Residence (JBR),” said Mohanad Al Wadiya, Managing Director, Harbor Real Estate.

For Harbor Real Estate, the number of listings in these areas has increased by 20 per cent to 25 per cent in 2010. “Business Bay with a larger focus on the recently launched Executive Towers comes third, according to us,” he added.

Al Wadiya said Downtown Dubai and Dubai Marina have always been ranked high and are one of the most sought-after areas in Dubai.

“The location of both these areas is good, which is the most important decision investors take while investing. Further, the current price points have also made these two districts more attractive as they have became more affordable.

“Another key reason for this increased attention and demand is the fact that both these areas include popular attractions such as The Dubai Mall, The Marina Mall, The JBR walk, The Marina walk, the free beach in JBR and Burj Khalifa.”

Better Homes’ Liz O’Connor, Director – Residential Sales and Leasing, said: “Our top-selling districts between November 2009 and February 2010 have been The Emirates Living District, Marina District, Downtown District and the Dubailand districts.”

“For us, between November 2009 and February 2010, we received the most listings for the Emirates Living District, such as The Greens, Emirates Living, Jumeirah Village, Jumeirah Lake Tower (JLT), followed by Dubai Marina, Dubailand and Downtown Dubai districts,” said O’Connor.

Vineet Kumar, Head of Leasing and Sales – Dubai, Asteco Property Management, said: “Majority of listings we received in the past two months are for recently handed over projects such as the Loft apartments in Downtown Dubai and the Executive Towers in Business Bay.

“Other areas, which have received good level of listings are Dubai Marina and JLT, villas in Emirates Living such as Springs and Palm Jumeirah.

“Also, Sheikh Zayed Road continues to draw interest from tenants looking for quality residential buildings.

“Listings are always linked to the status of handed-over projects. As more projects have been handed over, or are nearing completion, we have seen a growth in the number of listings in these select locations,” he added.

Handover

Real estate agents said the main reason for these areas recording the highest listings has been due to recent handover within these areas and the fact that these communities offer a complete lifestyle with lesser construction happening in these areas.

Al Wadiya said: “The overall market condition in Dubai is stabilising and the appetite of all the stakeholders in the property market is improving as there is a general consensus that the prices have bottomed out and if there is any further decline, it will be very marginal and will not affect areas or developments that are completed.”

O’Connor said: “For residential real estate, location plays a big role in the demand for these areas. People want to live in popular areas that provide them with a good lifestyle and one which are easily accessible.

“Our customers are increasingly looking for The Emirates Living district, followed by Dubai Marina, Dubailand and Downtown districts,” she added.

Kumar said: “Buyers will show interest in master-plans that are developed and offer convenience of living and at rates which are attractive. Further those buyers who receive handover of their property and do not wish to occupy them for self-use will often offer these for sale or leasing.”

Meanwhile, listings for properties (sales and rentals) in JLT and Discovery Gardens has dropped due to buyers looking at other value for money investments in other parts of Dubai.

Al Wadiya said: “During the second half of 2009, we were seeing more listings for JLT and Discovery Gardens. The listings have been reduced in these areas mainly because of the shift of focus to the more popular areas of Dubai such as Downtown Dubai and Dubai Marina.

“Prices are more affordable in these areas, hence buyers especially end-users and investors are shifting to these areas. In addition, Downtown Dubai and Dubai Marina offer a more established community lifestyle with less construction going on in the area,” he added.

He said the number of transactions in these areas could have fallen during 2010. According to Better Homes, no significant drop in listings has been noted in any particular areas.

“There are always shortages of a particular type of properties within a certain area for the right price which leads to a shortage in particular communities. Certain communities in Dubai, particularly those with villas, do not have many units becoming available as they have end users living in them who are there for the long term.

“The villas in Phase I Green Community are an example,” said O’Connor.

“Further, not having listings in a particular area could mean a number of things, such as a shortage of property within these areas for the right price.

“It could also mean that property owners are leasing rather then selling in these places,” she added.

Harbor Real Estate said the company does not remove any particular area from its listings.

“However, we focus more on the areas that have more demand. Having said that, we continue to provide minimum support to off-plan projects as the demand for these projects is still very low,” said Alwadiya.

Kumar said: “We have identified certain locations and focus on those areas alone. However, we have not removed any areas.

“You may find we do not have a presence in certain areas such as Downtown Jebel Ali and Dubai Waterfront. We will revisit these locations once we believe the market will be interested from a price-point which is agreeable to the sellers.”

Real estate agents said delivery of new properties in Dubai is likely to increase the number of distress sales.

O’Connor said: “Delivery of new properties in Dubai are likely to see a number of ‘distress sales’ coming into the market. In fact this is already happening. In all situations the reasons to sell are unique; however, we generally expect to see distress sales coming from areas where projects are not expected to be completed or cancelled.”

She added that in the case of a property with mortgage attached, the extent to which a seller is willing to sell his property would depend on the mortgage finance, as the final selling price must cover the bank’s finance amount. In the case of cash sales, however, there is no limit to which a seller may sell.

Kumar said: “As more inventory gets delivered there will be sellers who will prefer to exit from the purchase but the value will be linked to quality of project, status of the master community etc.

From the buyers perspective, this is a good time to buy a piece of real estate at realistic value with the aim of holding the property for the mid to long-term.”
He added that the term, “distress sales” should never be used, as selling a property is a seller’s personal decision.

“The reasons for selling the property at the value they deem right is the seller’s choice. We might use the term ‘motivated seller’ but not distress. Quite often such sales are at lower than market price and could translate into a financial loss for the seller. However, market conditions may be only one reason for such sales.”

According to Harbor Real Estate, the term ‘distressed sale’ emerged during the early days of the crisis during the last quarter of 2008 and has soon become a common property jargon.

“Few people really know what it means and how to qualify a property as a genuine distress sale,” said Al Wadiya. “The global credit crunch has hit the property industry hard. Developers find themselves in the position of having built projects which now have no buyers or the people who bought off-plan are now trying to pull out and recoup their deposits,” he said.

He said that distressed properties are properties that are in danger of facing foreclosure proceedings or that have already been scheduled for sale as a result of default on the part of the owner.

“A property is said to be distressed when an owner gets behind on mortgage payments or a direct payment to a developer and the lender or appropriate debt collector begins to start the necessary proceedings to sell the home in order to collect the outstanding debt.

Distressed properties can cover any kind of real estate, from commercial spaces to apartments. It’s a great chance to save, often ranging anywhere from 40 per cent to 60 per cent off their actual market value or buying price, but it’s also a great chance for making a good investment, since purchasing for a discount often means creating a huge margin for future profits,” he said. O’Connor said: “It is important to understand that a ‘distress’ sale is really only where the seller is willing to sell for less than he paid for, particularly if the property is off-plan.

“Some sellers are willing to sell for the original price of the property or less, but many sellers – in particular those with ready properties rather than off-plan – are unable to emotionally ‘let go’ for less than they think it should be worth.”

She said that many sellers will describe themselves as ‘distress’ sellers, even though they may expect to receive quite a bit more than they paid for the property.

“However, in the case of investors off-loading their off-plan properties, those that are prepared to incur a loss will generally accept up to 40 per cent less than the original price in order to just get some of their investment back,” she said.

“Owners looking to sell are increasingly twitchy about moving their properties off the market and banks have large numbers of repossessed property stock effectively sitting on their balance sheets when what they really need is liquid cash sitting in the coffers. All of this adds up to something that buyers love more than almost anything else – the opportunity for a bargain,” said O’Connor.

O’Connor said the situation occurs mainly with cash buyers. “This is a worse situation for a finance buyer, because he has to pay the bank and pay the difference directly from his pocket; in many of the finance distress sales, the client will walk away.”

“It is important to say that using the term ‘distress sale’ without the permission of the owner is considered a breach of the agents code of ethics introduced under by-law No 85 of 2006 because agents are supposed to be trusties for the owners and they should not disclose the owner’s financial status under any circumstances,” she said.

The real estate agents said some properties like JLT, Greens, Dubai Marina, Downtown Dubai are providing some good value for money investments for buyers.
“Some of the apartments in JLT are value for money and will prove to be a good investment when the infrastructure of the community is complete and the metro is fully operational. However, investors need to choose carefully. Those towers on Sheikh Zayed Road side of the community are proving to have the most popular locations,” said Al Wadiya.

“Greens is due to shortly handover and many investors are anxious to off-load their property at original price and in some cases for less,” said Al Wadiya.