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Last day to save 2% on property transfer fees

Nakheel kept its doors open till midnight on Wednesday

Developers in Dubai witnessed an unprecedented rush when customers sought to get registration documents on Wednesday so that they can complete the entire process with the Dubai Land Department on Thursday (today), which is the last working day before transfer fees are hiked to 4 per cent from October 6 (Sunday).

Nakheel, a Dubai-based developer, kept its office open till midnight on Wednesday to provide customers with registration documents, as today (Thursday) is the last day for investors to save 2 per cent on transfer fees.

“We decided to keep our office open till midnight on Wednesday to meet the customers requests. The numbers swelled to almost eight to 10 times more than we usually get,” a company spokesperson told Emirates 24|7.

According to industry sources, Emaar Properties and Deyaar Development offices were flooded with customer requests.

As informed earlier, some registration trustees will also be keeping their offices open till 10 pm to allow investors to register their transfer today.

This website had earlier reported that developers were working extended hours to cope with customer rush, who are seeking no-objection certificates and registration documents to complete the transfer of their properties.

On Sunday, the total real estate transactions had touched Dh5.1 billion at the Dubai Land Department.

The new registration fee, effective October 6, covers all property transactions in the emirate of Dubai except for the industrial sector, including warehouses.

Dubai Land Department’s Director-General Sultan Butti bin Mejren said: “The move is aimed to stop quick transactions (flipping), which is unhealthy for the market and results in sudden price increases.

“The decision has come at the right time. The market has matured and investor confidence is growing. The move is not likely to have any negative impact.”

Source: emirates247

Dubai property owner pays Dh53,000 to buy JLT parking

Claims developer refused to issue NOC unless he bought parking space

A property owner has paid Dh53,000 to buy a parking space in a tower in the Jumeirah Lakes Towers (JLT) master community.

RB, who requested only his initials be used, told Emirates 24|7 that he paid Dh53,000 to buy a parking space in August to get a no-objection certificate (NOC) for the title deed from the developer.

“I tried to convince the developer to issue the NOC, but he insisted that I buy a parking space.”

In 2012, this website reported that a developer refused to issue a NOC to the owner unless he bought a parking space.

“I didn’t have Dh40,000 to buy a parking bay last year, but I decided to buy it now by taking a personal loan. The developer hiked the price by 32 per cent and did not negotiate,” RB said.

However, despite buying the parking space, the developer has still not issued him the NOC, RB claims.

“No reason has been given for the delay. I keep on following up with them, but they aren’t giving any concrete answer,” he claims.

Parking barriers

Dubai Multi-Commodities Centre (DMCC), master developer of JLT, commenced activation of parking barriers in September 2012 with 16 clusters now covered.

This website reported then that in an email sent to a JLT resident, DMCC said the centre was finalising a solution and would issue JLT parking permits for those who require additional parking spaces.

The centre states that parking barriers have been activated to ensure that those people who have purchased the right to exclusive use of parking garages can park their vehicles, sell or lease their spaces.

“Any owner or tenant who has not acquired parking rights is advised to contact their tower developer, owners association, or landlord as soon as possible to avoid any inconvenience.”

Currently, there are free visitor parking bays and street level parking spaces available across the community. DMCC has emphasised there are plenty of parking spaces available for residents, office workers and visitors.

Source: emirates247

Dubai property registration fee doubled to 4%

New property transactions fees structure to kick in from October 6; buyer, seller to pay 2% each

The Dubai Land Department (DLD) on Thursday announced the doubling of the property registration fee to 4 per cent from 2 per cent.

The new registration fees covers all property transactions in the emirate of Dubai except for the industrial sector, including warehouses.

The new fee structure will start to be implemented from October 6, 2013.

DLD Director-General Sultan Butti bin Mejren said: “The move is aimed to stop quick transactions (flipping) which are unhealthy for the market and result in sudden price increases. “The decision has come at the right time… the market has matured and investor confidence is growing. The move in not likely to have any negative impact.”

Mejren pointed out that 110 countries in the world had higher property registration rates than Dubai, citing United Kingdom, which charges 4-10 per cent, France 8 per cent and India 7.3 per cent.

As per the decree, the fee will be split 2 per cent each between the buyer and seller. Although the previous law did specify one per cent each for the seller and buyer, in practice the buyer always paid the two per cent.  Mortgage registration fees remain same at 0.25 per cent of the mortgage value to encourage end-users.

No rollback

Asked if the department would consider delaying the implementation, Mejren asserted in no way the decision would be rolled out.

“The mechanism to issue laws in Dubai has evolved. We took almost three months to finalise the decision and I was been reviewed by the financial and legal department and even by investors. The law has been issued and is being executed. There is no way it will be revised.” Although the government hopes to slow down the price rise and discourage flippers, some experts believe this will not discourage genuine buyers because the price increases are based on real demand in Dubai property and not flipping.

Transaction reach Dh162b

In the last week (Sept 15 to 19), DLD registered property transactions worth Dh1.2 billion apart from Dh990 million in mortgages, the highest recorded in the past 50 years, Mejren revealed, adding that in the first nine months of 2013, Dubai has registered transactions worth Dh162 billion compared to Dh90 billion same period last year. In 2012, total transaction reached Dh145 billion.

Revealing that the Dubai market was on an upswing, Knight Frank, UK-based global consultancy, said on Wednesday growing investor confidence has already led to price increases with villas witnessing price appreciation of 11.4 per cent and apartments rising 15.1 per cent since beginning of 2013.

The Wealth Report 2013, released earlier this year, has revealed Dubai as one of the most favoured ‘safe haven’ locations for global investors.

“There is a definite focus on quality by buyers, which is now recognised clearly by developers. With the resurgence of Dubai real estate has come a more acute awareness of trust, reputation and the ability of developers to deliver a high quality product,” the consultancy said.

Standard Chartered said earlier that Dubai’s property market is not heading towards another crash with market is more sustainable and influenced by an improved economy rather than speculation.

Source: emirates247

Nakheel welcomes Waitrose to Palm Jumeirah mall

Dubai, 3 October 2013: Nakheel today confirmed upscale British supermarket chain Waitrose as a first and flagship tenant at the AED2.5 billion Nakheel Mall on Palm Jumeirah. Waitrose will occupy a 4,200 square metre area at Nakheel’s new retail, dining and entertainment complex, which will open in 2016.  More than 100,000 sqm of shop space, spread over five levels, is available. Ali Rashid Lootah, Chairman of Nakheel, said:  “We are delighted to welcome Waitrose to Nakheel Mall, which will create focal point for Palm Jumeirah and bring a new dimension to shopping, dining and leisure in Dubai.  It will enhance the services and facilities for residents of The Palm, and provide an exciting new destination for people across the UAE, including the millions of tourists who visit each year.” Mr Ali Albwardy, Chairman of Fine Fare Food Market, added: “Nakheel Mall on Palm Jumeirah is an exciting retail development and we are delighted to be represented there. Waitrose aims to combine the convenience of a supermarket with the expertise and service of a specialist shop and we looking forward to bringing this experience closer to the residents and visitors to the Palm.”

Nakheel Mall – endorsed earlier this year by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai – will be built in the centre of Palm Jumeirah’s trunk. Ground work is underway, with construction beginning by the end of 2013. A 50-storey, five star hotel will also be built alongside the Nakheel Mall.

The Nakheel Mall and Hotel complex will have three basement parking levels, 4,000 parking bays, a 1,000 sqm indoor garden and a 180 metre high viewing deck with panoramic views of Palm Jumeirah and the Dubai skyline. There will be more than 300 shops, including Waitrose and two anchor department stores, a nine-screen cinema and six medical clinics.  The Mall will also have a roof plaza with restaurants and cafes as well as a host of eateries inside.

Source: propertyonline.ae

Crystal Lagoons to bring world’s largest crystalline manmade lagoon to Dubai

Dubai, 02 October 2013. Multinational Crystal Lagoons Corp. the patented technology developer of giant crystalline lagoons, marks its return to Cityscape in Dubai, which starts on the 8th October, with the launch of its latest and grandest project to date, which once completed will be entered into the Guinness Book of World Records.

Crystal Lagoons has signed a deal to construct the world’s largest manmade lagoon, covering 40 hectares, almost four-times bigger than the world’s largest existing lagoon. Located in the upscale Mohammed Bin Rashid City – District One residential community, located in the heart of Dubai, the lagoon will form an integral part of the US$7 billion project. Mohammed Bin Rashid City – District One is a prestigious joint venture between Dubai-based Meydan Group and Real Estate developer, Sobha Group.

The new lagoon with its expansive custom-made beaches, which offer unlimited scope for swimming, water sports and other water based leisure activities, will be a core amenity within Mohammed Bin Rashid City – District One’s fourty seven million square feet of freehold land. This expansive development will feature luxury residences, green parklands, waterways, a high end shopping and dining pavilion and large recreational spaces creating one of the lowest density developments in the heart of any international city.

“Caribbean landscapes are no longer exclusive to tropical destinations. Our pioneering concept and state-of-the-art technology, which allows for sustainable, swimmable, turquoise lagoons of unlimited sizes to be built and maintained at low cost anywhere in the world, is proving extremely popular with our growing list of partners across the Middle East,” said Kevin P Morgan, CEO, Crystal Lagoons. “Dubai gives us an outstanding strategic position in the Middle East, and the opportunity to participate in a world-class development that adds prestige to our current project portfolio,” he added. Mohammed Bin Rashid City (MBRC) is a planned mixed-use development containing four components; family tourism, retail, the arts and entrepreneurship and innovation. One interesting feature will be a public park larger than Hyde Park in London.

Crystal Lagoons’ global portfolio of 250 projects located in 50 countries includes five high-profile Middle East based developments. The company has completed two lagoons in the popular Egyptian resort of Sharm El Sheikh – including currently the world’s largest lagoon at 12 hectares – and another completed project in Jordan, along with two other projects under development in Oman and the UAE. “As the only company in the world offering this concept and technology, we continue to expand globally and revolutionize the real estate market by partnering with international developers and resort operators to improve overall sales prices, velocity, and project densities. Based on our track

record in the Middle East, we have proven that our technology can add value to a top destination, making beachfront real estate a reality anywhere in the world,” said Morgan. The company is currently in discussions for a number of exciting new tourism projects in Saudi Arabia, Qatar, the UAE and Egypt, and Morgan emphasises the region’s attractiveness as investment in tourism infrastructure continues to outpace other global markets. Crystal Lagoons’ portfolio of regional projects also includes the completed 4.29-hectare Dead Sea Lagoon in Jordan, a project developed in partnership with Turath for Tourism & Real Estate Projects, and the under development 4-hectare lagoon located within the new Barka Resort in Oman. The Alargan-developed resort is situated 50 kilometres west of the capital, Muscat, and the lagoon has become the focal point of the community, which also offers three hotels, serviced apartments, villas, townhouses, apartments and a souk.

With the announcement of its new Dubai project, Crystal Lagoons is also on the way to securing its third Guinness World Records’ title for the world’s largest swimming pool, building on the success of its San Alfonso del Mar, Chile, and Sharm El Sheik, Egypt, locations. The only global company with the technological capability to make the development of giant bodies of water economically viable, Crystal Lagoons is positioning itself as offering a unique product differentiator to high-profile tourism and real estate projects around the world.

Its technology makes it possible for people to enjoy an authentic beach experience in previously unimaginable locations, such as the desert or in the centre of major cities, with the potential to add economic value to new tourism destinations and real estate projects. Crystal Lagoons uses up to 100 times less chemicals than traditional pool systems and only two per cent of the energy required by conventional filtering technologies, making the lagoons incredibly sustainable. The largest real estate event in the Middle East, Cityscape Global 2013 takes place from 8-10 October 2013 at the Dubai International Convention and Exhibition Centre.

Source: propertyonline

Full steam ahead for Mohammed Bin Rashid City District One

Dubai-UAE, 02 October 2013: Meydan Sobha FZ LLC, today announced that District One, Dubai’s marquee development located in Mohammed Bin Rashid City, is making rapid progress with the construction of its Show Village. The Show Village, which will act as a unique showcase of the prestigious Meydan Sobha development, is already approximately 80 per cent complete and when finished will comprise nine show villas, a demonstration of the world-leading Crystal Lagoon feature, extensive landscaping and a bespoke sales centre.

District One is an exclusive residential destination situated in a prime location in the heart of Dubai, a mere 2.9 kilometres from the Burj Khalifa. The expansive development is just five minutes from the entertainment and financial centres of the city, but it will be one of the lowest density residential developments in any international city, with over 65 per cent of its 1,100 acres dedicated to open and green space. Launched by Meydan Sobha, an equally owned joint venture between Meydan Group LLC and Sobha Developers Ltd, the project, which will be delivered in four phases, will be completed in approximately seven years.

The nine actual villas in the Show Village will offer buyers a preview of what their future life of luxury will look like as they will be identical in every respect to the homes that residents will be able to buy. One of the unique selling propositions of District One will be the world’s biggest manmade lagoon, which is being constructed by globally renowned Crystal Lagoons, and the Show Village will also include a portion of the actual lagoon built using the same technology.

Commenting on the development, Mr. Saeed Humaid Al Tayer, Chairman and CEO of Meydan Group said: “Mohammed Bin Rashid City-District One is poised to become a monumental destination in Dubai, offering a residential development in the heart of the city that is currently unique to anything else in the region. The development also includes various attraction points ranging from parks, man-made beaches and the largest Crystal lagoon in the world to sports fields with cycling tracks, an equestrian club and shopping & dinning promenade with an array of restaurants. With master planning, aesthetic design and build of the highest quality, the show villas’ completion provides customers with the ability to physically experience their future lifestyle in a true and meaningful manner.” Prospective buyers in District One will have the option of distinct villa styles and a vast array of floor plans, ranging from four to eight bedrooms.  The project embodies a lifestyle that blends luxury with natural beauty and nouvelle residential. “With a three-decade-long pedigree of developing and constructing lifestyle destinations, District One will be the jewel in Sobha’s crown,” said Mr. PNC Menon, Founder and Chairman of Sobha Group.

“We expect to complete the nine villas by November. Our partnership with Meydan will enable us to deliver expertise, choice and quality to an entirely new community in the heart of Dubai.” In addition to the stunning villas themselves and the vast lagoon, District One will also deliver a phenomenal range of features and activities including parks, manmade beaches, canals, water sports, and even an equestrian club with riding trails. The development will also feature a promenade with a wide selection of stores, restaurants, cafes, lively bistros and entertainment options.

Source: propertyonline

High expectations for Cityscape Global 2013

The 12th edition of the Middle East’s largest and most influential property event will take place from 8-10 October at the Dubai World Trade Centre, and has been extended to two additional exhibition halls this year, covering more than 25,000 square metres of exhibition space. With more than 200 international and regional exhibitors taking part, the global real estate showcase has been on a consistent upward growth curve since 2009, and will be the largest it has been in four years. Even so, its organisers, Informa Exhibitions, hadn’t anticipated such a strong exhibitor response months before the show opens. “With Cityscape Global being the barometer of the local and international real estate market, we were always anticipating continued growth of the show.

The demand for exhibition space that we have received over the last couple of months in particular, however, has been quite overwhelming,” said Wouter Molman, exhibition director of Cityscape Global.

“There is definitely a heightened buzz about the exhibition this year which has resulted in the difficult decision to turn away exhibitor requests because we simply don’t have any more space to accommodate them. “The good news is that those companies which were ready early and confirmed their space will have a global audience of more than 25,000 participants to showcase their latest property developments and peripheral real estate products and services.” Molman added that he expects a large number of major announcements to be made by participating exhibitors both leading up to, and during Cityscape Global, as developers work hard behind the scenes to build up investor interest to coincide with the three-day event. This year will also see an increased participation from Qatar based companies, with major projects from key developers Barwa Real Estate Company, Mall of Qatar, Msheireb Properties, and United Development Company, all taking

centre stage. Abdulla Hassan Al Mehshadi, CEO of Msheireb Properties, said: “Msheireb Properties is delighted to be taking part in Cityscape Global 2013. For us, it represents an opportunity to showcase our flagship project Msheireb Downtown Doha and the pioneering work we are currently undertaking in the field of sustainability urban development.” Another stand that will be a major attraction for crowds will be that of the Dubai-based Diamond Developers, which will showcase its AED1 billion, 46 hectare Dubai Sustainable City development, the Emirate’s first fully sustainable real estate project. Faris Saeed, CEO of Diamond Developers, commented: “Under the slogan ‘Sustainable living’ we will be presenting at Cityscape Global a day of a family living in a sustainable community.

Dubai Sustainable City is a new generation of community planning, and we will showcase the multiple benefits of living in a sustainable environment with emphasis on green, social and economic aspects of sustainability. We are thrilled to share our vision and experience in sustainability solutions that seek to make Dubai the region’s benchmark for sustainable development.”  Ahmad Al Matrooshi, managing director of Emaar Properties, Foundation Sponsors at Cityscape Global, added: “Cityscape Global is the region’s premier property exhibition that attracts visitors from around the world. As a foundation sponsor of the event, we will once again showcase our established and upcoming project portfolio to a distinguished audience encompassing industry professionals across all facets. The exhibition is a key index of the performance of Dubai’s property sector.”

Source: propertyonline / Property Times magazine

LD takes steps to stabilize sales and rental markets

Dubai’s Land Department (LD) is taking further steps to stabilize the market, taking the rent committee under its wings and doubling the property registration fees. The IMF recently alerted of the risk of a property bubble emerging in Dubai, and this increase in registration fees may just be what the doctor ordered.

“We studied this increase in the fees actually before the warning was issued by the IMF, and although we believe our decision is in line with the IMF’s concerns and increasing the fees to 4% will limit any indications of a bubble happening, limiting unhealthy flipping, we don’t agree that there is a bubble forming. On the contrary, we believe the market has reached maturity, is stable, with actual projects not speculation and the values today are at the right level for a global city like Dubai,” says Sultan Butti bin Mejren, the director general of the Land Department of Dubai (LD).
The increased fee from 2% to 4% to register a property on the land department’s interim or completed real estate registry applies to all properties, except industrial and warehousing, from October. As per law buyers and sellers are expected to continue sharing the fees on a 50-50 basis.  The LD has recorded AED162 billion covering 44,000 transactions since the first nine months of this year. In comparison the same period last year saw transactions of Dh90 billion and Dh145 billion for thewhole year. Clearly the market is on the go. “It is good they’re trying to curb flipping, we would suggest a property tax and this is a good example of that. We’ll see how well the 4% will work but the experience in Singapore and Hong Kong is that transaction tax is s god way to reduce the amount of dissuading buyers selling on too quickly,” comments Craig Plumb, head of research at Jones Lang LaSalle – MENA.
Equally rents are on the way up. The LD hopes by moving the existing rents committee under Dubai Municipality into its judiciary remit, it will stabilize rent levels and decrease the number of disputes. The rentdispute settlement centre promises to speed up procedures and benchmark them to, if needed, introduce new laws, revise application fees and even the rent index.
“The LD has some very experienced people, so hopefully this new Centre will be a good thing for the market, but it remains to be seen how the transition goes and whether the new Centre looks at things the same way as the Rents Committee did,” comments Michael Lunjevich, partner at Hadef & Partners. The centre will open 60 days from when the already issued decree to form it is published in the Official Gazette. The next opportunity is October. “We expect to open by December,” confirms Sultan.
source: propertyonline / Property Times magazine

Realty: Tempo should ensure fee hike is taken in stride

But buyers of Dubai property might soon have to factor in a possible tightening of mortgage lines

Dubai: Give property buyers some space and they will start to take the hiked registration charges in Dubai — from 2 per cent to 4 per cent which came into effect from October 6 — in their stride. At least, that is the sum and substance of what market observers are forecasting.

“There haven’t been any transactional activity drop as such after the announcement [late last month],” Yash Shah, sales and leasing manager at SPF Realty, said. “The market will soon absorb the new regulations and move forward. It just needs some time to sync in the market.”

But that, to put it bluntly, is the crux of the issue. Will the hike go far enough to slow down the pace of increase in activity in key freehold locations of Dubai?

There was some talk about the momentum tapering off slightly once the wave of buying spurred by the Arab Spring subsided. That never happened, as the last two quarters saw a surge in transactions, as recorded by the Dubai Land Department (DLD). Property value gains are still sticking to the double-digit percentage growth during the same period.

According to top DLD officials, the hike will go far enough to cool down “excessive” speculative buying and selling in the chase for a quick profit taking. At the same time, they also make a point of emphasising that local registration charges are still much lower than in most mature real estate investment destinations.

More measures likely

“Of course, the idea is not to restrict the market altogether but allow a slower rate of increase,” Robin Teh, country manager at Chesterton International, said. “There might be more measures being introduced as the months progress.”

While cash buyers can take increased transaction costs in their stride, it may be less so for mortgage-backed buyers. There are still concerns over the loan-to-value (LTV) upper limits that the UAE Central Bank might impose shortly, forcing buyers to put up more equity as down payment.

That plus the doubling of the registration charges now will mean a sizeable funding commitment upfront.

But Shah reckons that the market and its buyers just need some extra time to adjust. He says the registration charges will be shared by the buyer and seller, which is the norm now (even though the regulations place the onus on the buyers alone.)

“The raised fees will be equally shared by buyers and sellers, so I don’t see a need for investors to talk of the sudden hike in fees,” Shah said.

“Once the market syncs with the new changes, there won’t be any correlation between the higher transaction charges and a slower growth in property value gains.”

Source: http://gulfnews.com/business/property/uae/realty-tempo-should-ensure-fee-hike-is-taken-in-stride-1.1240110

Recent property buyers in Dubai caught between rock and hard place

Sellers insist that these buyers should stick to the market norm of paying the registration charges in full

Dubai: With property registration charges doubled to four per cent from October 6, buyers involved in recent transactions are suddenly dealing with a funding crunch they never anticipated.

Sellers insist that these buyers should stick to the market norm of paying the registration charges in full, even though the Dubai Land Department regulations clearly state that these should be borne equally by buyer and seller.

“An unseemly tug-of-war has broken out in those transactions where the buyer does not have immediate access to the additional funds and the time limit on their mortgage applications is ticking away,” said a property agent. “It leaves affected buyers between a rock and a hard place while sellers hold all the aces.

“The only solution would have been for the authorities to extend the period before which the hike came into effect.

Source:  gulfnews