real estate

Right time to grow your portfolio

Even though some buyers continue to maintain a ‘wait and see’ approach as property prices continue to soften, if you have invested in Dubai property, especially in key growth areas, then hold on to your portfolio. In fact, we would advise you to, if possible, add to your portfolio.

Dubai’s economy is still doing very well although the IMF forecast for UAE economic growth this year is down to 3 per cent compared to last year’s 4.6 per cent, which is quite understandable considering the after-effects of the recent oil price slump on economy. Having gradually weaned the country away from overdependence on oil, the UAE remains in a good fiscal position as it proceeds with economic diversification.

The UAE economy is being driven by tourism and trade, and a slew of successful new projects that will complement these important revenue-generating economic segments which continue to be a primary feature of Dubai’s growth outlook. In 2014, Dubai welcomed over 12 million visitors, continuing a growth trend of approximately 9 percent per annum since 2010, a statistic which is the envy of many nations.

The ‘soft landing’ of the UAE economy is by no means bad news as it is simply indicative of more gradual sustainable growth overall which, in turn, is supported by the following factors:

The market is in a healthy state of revaluation and consolidation, not recession. The reduction in growth rates is necessary to ensure the type of sustainable, profitable growth that long-term investors seek becomes a recognized characteristic of the Dubai market. The market has demonstrated its maturity and resilience by recovering post-global financial crisis and is now adjusting to more sustainable value appreciation levels.

Strong demand for property. When you are investing in real estate, you are actually investing in the economy, and the effect of the 2020 Expo on the UAE economy cannot be underrated in terms of generating demand for real estate assets. Hosting the World Expo will provide additional impetus for the industry to enjoy continued growth, and the predictable surge in demand for accommodation and commercial space of all types, from labor camps to offices to warehouses to apartments to executive villas, is sure to have a significant effect on property values.

Investor appetite and confidence remain for off-plan and under-construction projects especially for those launched by reputable developers. Outside of tier one developer-led schemes, there has been strong performance in recent launches outside of prime locations and emerging areas.

The low mortgage rates of today are unprecedented and, notwithstanding possible interest rate rises in the US later this year as the dollar continues to strengthen, will still be affordable in the ensuing five years. We should remember that affordable finance and demand for real estate assets are inseparable.

The market is approaching maturity. The on-going development of the industry’s regulatory framework and the implementation of laws to safeguard both consumer and investor interests, and the overall industry and economy at large from rampant and irresponsible speculative, predatory or unethical practices, reveal a mature and balanced approach to shaping an industry which will exhibit sustainable growth over the long term.

If it’s superior yield with minimal capital outlay that you are after, Dubai real estate is still hard to beat unlike older established cities like Hong Kong and Singapore which currently suffer from high costs of housing, especially the former where only 50 percent of residents own their homes. Affordable properties have all benefitted from Dubai’s recovering economy. Investors in these areas can reasonably expect rental returns of at least 7 percent per annum on top of annual capital appreciation. Given the relatively low cost of entry, even with the overall economic slowdown predicted to continue well into the coming year, buyers in growth areas such as Dubai land will see greater financial rewards for their astuteness and patience in due course.

There is definitely a shortage of affordable housing in Dubai. The number of developments that will be supplying housing affordable to the middle and lower income segments is definitely on the increase, more so in the run up to the 2020 World Expo. Historically, the established developments that were most associated with filling the affordable housing gap were international City, Discovery Gardens and, to a lesser extent, MotorCity. But there have been more recent additions that have provided realistic alternatives to these older developments, and several more to come.

Still, as both buyers and sellers are sticking to their negotiating positions with more determination and a greater propensity to walk away from the negotiating table if not satisfied, the real estate cycle will continue on its course. Prices may continue to soften, but what is more important is that the market does not go down on a steep fall, and keeps to its current sustainable path.

Innovation… thriving where others do not survive

There have been a number of articles recently published describing the pressure that some real estate agencies are feeling as a result of the current correction in the Dubai real estate market. There have also been instances of real estate brokerages laying off a significant number of their staff or closing their doors altogether.

For some, survival was a short-lived ride on the post-Global Financial Crisis (GFC) wave, and the recent instances whereby entire businesses have struggled to continue surviving begs the question: what are the determinants of success in today’s market climate?

The answers are as simple as they are difﬁcult to attain. They remain elusive for many companies; but those establishments that understand them, capture them, develop them and practice them stand a greater chance at enjoying unbridled success.

It may be a cliché, but a primary ingredient essential to success is passion. Without passion, you cannot be successful in this business. Any real estate operation must attract, develop, motivate and retain a passionate group ofprofessionals, and any serious client will recognize this. This is a people’s business, and without a passionate and professional team, survival will be impossible.

Experience is critical. We are in a business characterized by high capital requirements, a broad spectrum of risks and deep emotional involvement. Failure cannot be an option. That is why I know I am fortunate to be part of an executive team with over 20 years of experience in the Dubai real estate market. As we are all aware, the industry has been evolving rapidly and still remains one of the most dynamic in the world. The GFC did show us that this is not an industry for those who don’t know what they are doing, and to be able to draw deep on experience is invaluable.

Being ﬂexible and developing the capability to adapt is a prerequisite to success, particularly in a market that is changing so rapidly. The GFC was a period of rapidly changing circumstances, which bore unprecedented challenges requiring immediate yet innovative solutions. This was a difficult period, but also one of great learning, which put those who were ﬂexible and adaptable in a great position to capitalize on the opportunities that were to eventually emerge with the recovery. It was no easy task and it required a brutally honest assessment of individual capabilities, as well as the capabilityof the organization to continue to provide the services that clients required, but within a totally new environmental context emanating from what was essentially economic turmoil.

But it is a culture of innovation that separates the “thrivers” from survivors. There is no doubt that tried and true practices that worked in the past have required an overhaul in order to address new realities, and create and maintain a discernible edge in a highly competitive market. This is what really differentiates those that have thrived in the post-global recession period, from those that managed to survive only to falter as a result of the latest market correction. A key learning from the GFC is that innovation relevant to circumstances will always prevail regardless of the situation. Whether the market is hot or cold, innovation will always provide the competitive edge.

If you look at the industry today and compare it to the days of 2008, it has come a long way. The advances made in the legal framework, regulatory infrastructure and overall governance typify a market that is rapidly heading towards full maturation and the type of sustainable profitable growth that all stakeholders in the industry have been seeking.

As professionals who care about our business, we must continue to embrace and support any change that will improve the health of our industry. Because it is the health of our industry that really matters most. Those of us who are around to tell of our experiences during the GFC will recall that the initial objective was pretty basic: to survive in an environment that nobody in the industry had witnessed before and, in order to survive, we needed to adapt, innovate and develop as individuals and organizations. Those that didn’t fell by the wayside, for after all, that is what a recession is all about… survival of the fittest… and it is the fittest that will thrive.

Why it is a good time to buy property in Dubai

The market has been cooling for around a year now,

but is expected to pick up again in 2016

I receive so many questions regarding the current state of the market and whether now would be a good time to buy. My answer is invariably yes, especially as the market has become attractive with opportunities available and advantages to be gained from purchasing now.

The market has been cooling for around a year now, but is expected to pick up again in 2016 as the next five years are expected to see strong economic growth in Dubai. Picking the exact timing is always difficult but it is better to be early rather than late and starting early will be a prime determinant of your success.

I recommend you start your property search immediately as a property investment requires the same approach and set of considerations regardless of the state of the market and proper due diligence can take time. You are embarking on a major purchase which has the potential to affect your life in either an extremely positive or negative way. So you need to make a timely decision, not a hasty one.

Be critical in determining what you can afford. If you have-the cash, I suggest you pay for your new purchase outright. However, don’t be afraid to take out a mortgage… just be sure you fully understand what mortgage ‘repayments are going to do to lifestyle and whether you are prepared to make some sacriﬁces to own your own property. Make sure that you consider the many and varied easy payment plans that are currently on offer as many of these plans will save you considerable amounts of money.

Think carefully about location, surrounding infrastructure, construction quality and developer reputation and building amenities. Properties which are close to the beach, with a sea view, a golf course view or part of an iconic development such as Downtown usually provide good returns. If you have close access to the Metro, even better.

When buying an apartment, you also need to consider the efﬁcacy of the owners’ association, costs associated with service charges and the quality of maintenance services as these will impact the long-term value of your investment. Finally, be purposeful, persistent, patient and pragmatic in your approach and you are well on the way to making a sound decision.

Gulf News Freehold – Ask the Agent

ls Dubai’s realty market about to enter a new period of oversupply? With new projects being announced and the market now in decline, will this prolong the current market correction?

Calculating optimal supply levels, particularly when emerging from a recessionary period, is particularly challenging. it depends on an accurate estimation of demand for real estate assets which will emanate from population growth which, in Dubai’s case, will be largely driven by overall economic growth. It also needs to comprehend a lag effect from the time that conditions conducive to development are identified by developers and when properties are finally released into the market. Given that the Dubai economy is expected to grow at an estimated 5%+ annually and initiatives such as the Expo 2020 are expected to generate more jobs, the demand for housing and commercial facilities is expected to grow significantly.

l recently arrived in Dubai. Can you give me tips on what l should consider when looking to rent a property?

There are six key considerations when going for your first rental.

Know what you can afford and allow 30% of your gross household income for rent.
Give yourself time to find the best solution that fits your budget. Do not jump at the first possibility and do not settle for less.
Make sure your agent is registered with RERA. You can log on to the Dubai Land Department (DLD) website to check.
Make sure the tenancy agreement is as per the RERA standard template. Check DLD website.
Ensure you document any property defects before you sign the contract. Raise them with your agent before you sign anything.
Ensure your rental contract is registered in RERA’s Ejari system. Insist that your broker completes the registration as it is the first step towards safeguarding you rights as a tenant.

I have owned my home for over seven years and I am looking at how I can save money by upgrading particular aspects of the property.

Here are seven ideas that may help you save a few dirhams:
Use low-flow fixtures to cut water usage by up to 40%.
Buy fluorescent bulbs which last four to l0 times longer than regular light bulbs
Update your dishwasher. Modern units use 42% less water than older models.
Consider a tankless water heater and save on electricity.
Good ceiling fans can reduce air-conditioning costs. They dispel the need to turn on the aircon often.
Apply energy reducing film on windows to reduce internal temperatures.
Consider fitting solar panels.

Our contract states there is payment due at handover and payment as maintenance advance. The developer is asking all payments on “completion date.” ls “completion date” not the same as “handover date?”

“Completion date” and “handover date” are not the same. The building can be deemed complete once the official “Completion Certificate,” which ensures the building passed all inspections has been received. Just because a building has been issued a completion certificate does not mean it is ready for handover and occupancy. Often, there are a number of small items that need to be completed before it can be occupied. l suggest you confirm that your SPA definitely refers to the “handover date” as what triggers the final payment and maintenance advance. If so, you should not make the final payment until the developer is ready to hand over the keys to you and only after you (or a professional) had the chance to inspect the apartment to ensure you are receiving what you paid for.

With the current correction in the market having been underway for some time now, do you think the market has bottomed and represents a good opportunity to buy?

There are definitely opportunities available and advantages to be gained from purchasing now. The market will pick up again as the next five years are expected to see strong economic growth in Dubai, but picking the exact timing is always difficult.

Start your property search immediately as a property investment requires the same approach and set of considerations regardless of the state of the market.

Know what you can afford. If you have the cash , I suggest you pay for it outright; however, do not be afraid to take out a mortgage as long as you plan and understand the impact of interest rate rises in the future.

Think carefully about location, surrounding infrastructure, construction quality, developer reputation and building amenities. Properties which are close to the beach, with a sea or golf course view, or part of an iconic development usually provide good returns. If you have close access to the metro, even better.

Also consider the effectivity of the owners association, service charges and the quality of maintenance services as these will have an effect on the long-term value of your investment.

Send in your property issue-related questions to be answered by industry experts, mentioning ‘Ask the Agent’ in the subject line, to: properties@gulfnews.com

H1 2015… and where are we?

Mohanad Alwadiya, MD of Harbor Real Estate & Instructor at
the Dubai Real Estate Institute, the Official
Training & Certification Arm of the Dubai Land Department

For the past 6 months, headlines have been making many and varied references to the Real Estate correction in Dubai. This is not surprising as yes; indeed, Dubai’s Real Estate industry is in the midst of a correction. For many, the term “correction” is viewed with suspicion and trepidation, particularly those with a more tactical, less strategic, short term point of view. For those who are taking the long term perspective, the term “correction” is viewed with anticipation as the term refers to the elimination of systemic issues and making the necessary adjustments to deal with impacts of external issues on the efficient operation of the real estate market itself.

There is no doubt that a “correction” was overdue. 2013 will long be remembered as Dubai’s comeback year as the total value of Real Estate transactions reached AED 234 Billion, a 52% increase in the prior year which was clearly unsustainable as witnessed when the correction began in 2014 when AED 218 Billion worth of real estate assets were sold, a reduction of over AED 16 Billion on the prior year. At the time of writing, just over AED 63 Billion worth of transactions had taken place during 2015 indicating that the market is well and truly into its correction phase.

The market definitely benefitted from high levels of liquidity during 2012 and 2013. Capital inflows seeking safe haven from regional conflicts flowed strongly, however, they were sure to weaken and have. Geo-political events such as the wrangling over the Ukraine and subsequent economic sanctions imposed on Russia by the West meant a rubble which was declining rapidly in value made investing in Dubai an increasingly expensive proposition for Russian investors who historically have been prevalent amongst the investing community. In addition, changes to mortgage laws also dampened the availability of capital for those investors wishing to use leverage to capitalize on attractive property valuations and the promise of high and sustainable rental yields. A slew of new projects being launched as a result of renewed developer optimism also placed pressure on liquidity levels and, eventually, prices market-wide. Initially, launches were made with prices for off-plan units consistent and supportive to prices for completed units. However, with each additional launch competition for the investor Dirham intensified, leading to a gradual reduction in prices for off plan units making the risk reward equation more palatable for off-plan units versus completed units. In addition, the shift of developer focus in response to the call for more affordable housing also meant that investors gravitated towards this, perhaps the most important structural correction in the market to date.

The number of new launches has been impressive, leaving many to question whether over- exuberance on behalf of developers will result in a significant oversupply. Calculating optimal supply levels, particularly when emerging from a recessionary period, is particularly challenging. It depends on an accurate estimation of demand for real estate assets which will emanate from population growth which, in Dubai’s case, will be largely driven by overall economic growth going forward. In addition, it needs to comprehend a lag effect from the time that conditions conducive to development are identified by developers and when properties are completed and are released onto the market.

We at Harbor take, at minimum, a 5 year view when looking at equilibrium or imbalances in the market. When taking into account the nature of the markets resurgence, the strong growth in fundamental economic drivers such as tourism and trade, the levels of investment into infrastructure and initiatives and stakeholder commitment to sustainable growth, we believe that, while inventory levels may spike in the interim, they will not be excessive at the end of our 5 year forecast period. There will be around 11,000 villas, 7,500 townhouses and 35,000 apartments delivered between now and January 2020. While this may seem a lot, remember that we are a entering period where demand for properties, particularly those which are affordable, is expected to rise significantly and, given average current occupation rates are around 80 – 85%, there is not much margin for error in terms of satisfying expected demand.

Put simply Dubai needs people to support an economy that is expected to grow at an estimated 5%+ annually for the remainder of the decade and to deliver initiatives such as the 2020 World Expo. The Expo alone is expected to generate an additional 270,000 jobs and drive demand for housing and commercial facilities that, by and large, don’t currently exist. Much of the city’s planning comprehends the number of people living in the emirate to grow to 3.4million people by 2020, a 7% annual increase from today’s population of 2.25million.

There is no doubt that a stabilized real estate market will provide a much better launch pad for what will be a period of significant economic and commercial activity over the next 5 to 7 years. The structural shift towards more affordable housing will not only serve to accommodate the expected rapid population growth associated with the 2020 expo, but also serve as an important factor in the development of the Dubai economy overall.

Every emerging economy needs to develop a strong middle class as its expansion is critical to growing a sustainable economy and developing resilience in the face of external financial and economic shocks. In addition, for Dubai to compete effectively on a regional and global basis, it needs to ensure that the cost of doing business in the emirate does not position it as an outlier when entrepreneurs or corporations are considering alternatives for their operations. When taking this perspective, the correction could not have come at a better time.

casinos not registered with gamstop

https://el-mot.ru/stat-i/

إيجارات دبي” تتمسك بأدائها عند المستويات نفسها في النصف الثاني”

دبي ملحم الزبيدي:

حافظ سوق إيجارات الوحدات السكنية (الشقق والفلل) في دبي منذ بداية النصف الثاني من العام الجاري على نفس مستويات الأداء الذي استهله خلال الأشهر الستة الأولى من 2015، حيث تمسكت أغلبية المناطق بالأسعار نفسها مع تراجعات طفيفة في بعض المناطق على حدود الإمارة.
من المرجح أن تحافظ أسعار إيجارات الوحدات السكنية على مستوياتها نفسها حتى نهاية العام الجاري نظراً لضعف تأثير المعروض الجديد الذي سيدخل إلى السوق الذي لن يتعدى الموازنة بين كفي معادلة العرض والطلب.

ورجحت المصادر ل«الخليج» أن تميل أسعار الإيجارات تدريجياً إلى التراجع بحلول الأشهر الأولى من العام الجديد 2016 بنسبة تراوح بين 5 و10% فقط مع دخول المزيد من المعروض من الوحدات السكنية الأمر الذي سيؤثر لمصلحة العرض.
وتستشهد مصادر عقارية عاملة في سوق دبي بأن الدور الأبرز للقانون العقاري رقم 43 الذي أسهم بشكل واضح في تحديد زيادة بدل إيجار العقارات في دبي، الأمر الذي عكس حالة من التباطؤ في ارتفاع الأسعار وميلها إلى الاستقرار.
وذكرت المصادر أن أسعار إيجارات الفلل والشقق ارتفعت خلال 2014 بنسبة 4 و7% في المتوسط على التوالي، لافتة إلى أن الأسعار ارتفعت بنسبة 65% للشقق و55% للفلل منذ 2011 غير أنها لاتزال تقل بنسبة 25 و20% على التوالي عن أسعار 2008.

مهند الوادية: الاستقرار يغلب على أسعار الإيجارات في 2015

وأوضح مهند الوادية، المدير التنفيذي لشركة «هاربور العقارية»، والمحاضر في «كلية دبي العقارية»، أن أسعار إيجارات الوحدات السكنية في أغلبية مناطق دبي لا تزال تميل إلى الاستقرار والثبات عند نفس معدلاتها التي أنهت عندها 2014، ومن المتوقع أن تبدأ بالتراجع التدريجي بنسب بسيطة جداً تراوح بين 5 و10% فقط حتى بداية العام المقبل 2016.
وأشار الوادية إلى أن المرسوم رقم 43 لسنة 2013 أسهم في تحديد زيادة بدل إيجار العقارات في إمارة دبي، حيث وصّف المرسوم نسب الزيادة القصوى الممكنة عند تجديد عقود الإيجار.
ما أدى إلى خلق حالة من التباطؤ في ارتفاع الأسعار وميولها إلى الاستقرار.
ونص المرسوم على ألا تكون هناك أي زيادة في القيمة الإيجازية للوحدة العقارية إذا كان بدل إيجارها يقل عن 10% من متوسط أجر المثل، فيما حدّد الزيادة بنسبة 5% من القيمة الإيجارية إذا كان بدل إيجار الوحدة يقل بنسبة ت`راوح بين 11% و20%، من متوسط أجر المثل.
وحدد المرسوم زيادة قدرها 10% من القيمة الإيجارية للوحدة العقارية إذا كان بدل إيجارها يقل بنسبة تراوح بين 21% وحتى 30% من متوسط أجر المثل، وزيادة قدرها 15% إذا كان إيجار الوحدة يقل بنسبة تراوح بين 31% وحتى 40% من متوسط أجر المثل، فيما تبلغ الزيادة 20% من القيمة الإيجارية للوحدة العقارية إذا قل بدل إيجارها بنسبة تزيد على 40% من متوسط أجر المثل.
وأضاف الوادية قائلاً: «سيكون الاستقرار هو الطابع الغالب على أسعار الإيجارات في 2015 في الوقت الذي سيؤدي الطلب من جانب المستثمرين إلى تعزيز القيمة بفضل تجدد الثقة بالاقتصاد الذي أظهر نمواً قوياً على أرض الواقع في 2014».

انخفاض7 مناطق

وكشف شركة «أستيكو» للخدمات العقارية، أن سبع مناطق في دبي انخفضت فيها أسعار إيجارات الوحدات السكنية خلال الربع الثاني من العام الجاري مقارنة بالربع الأول، إذ تراجعت إيجارات الشقق في تلك المناطق بنسب راوحت بين 1% و7% فقط.
وأشارت «أستيكو» إلى أن هذا الانخفاض في أسعار الإيجارات يعد الأول منذ بدء صعودها في عام 2012، عازياً السبب إلى استمرار ضخ معروض جديد من الوحدات السكنية في السوق.
وسجلت الإيجارات في منطقتي «ديسكفري غاردنز» و«إنترناشيونال ستي» تراجعاً بنسبة 7%، فيما سجلت مناطق «ديرة» و«شارع الشيخ زايد» و«جميرا بيتش ريزيدنس» انخفاضاً ب1%، في حين شهدت منطقة «دبي مارينا»، التي عانت مشكلات الأعمال الإنشائية والازدحام المروري مدة طويلة، انخفاضاً في أسعار الإيجارات بنسبة 2%، كما سجلت منطقة «جميرا فيليج» تراجعاً بالنسبة ذاتها.

متوسط الإيجار

أفادت الشركة بأن سعر إيجار (الاستوديو) سنوياً في منطقة «ديسكفري غاردنز»، راوح بين 45 و52 ألف درهم، فيما راوح إيجار الشقق غرفة نوم واحدة بين 60 و72 ألف درهم، بينما بلغ متوسط إيجار الشقق ذات الغرفتين بين 80 و90 ألف درهم.

من جانبها، أكدت شركة «ستاندرد للعقارات»، الإماراتية، التي تتخذ من دبي مقراً، أن قطاع الإيجارات شهد استقراراً في الأشهر الأولى من العام الجاري 2015، ولكنه بدأ تسجيل انخفاض طفيف خلال شهر إبريل/نيسان بضغط من دخول المزيد من الوحدات السكنية عبر مشروعات تطويرية تم الإعلان عنها خلال شهر إبريل.

وأرجعت بيانات الشركة تراجع إيجارات العقارات إلى دخول مزيد من الوحدات العقارية الجديدة في السوق أتاحت المزيد من الخيارات أمام المستأجرين وطمأنت السوق بشكل جعل من الهدوء سمة للسوق في الفترة الحالية، ما ضغط على الأسعار بشكل نسبي، حيث لفت التقرير إلى أنه تم الإعلان عما يقرب من خمسة مشروعات سكنية كبيرة في دبي خلال شهر ابريل فقط تستهدف قطاع الإيجار والبيع.

Boost your portfolio

By Mohanad Alwadiya

Long-term planning is paramount to maximize financial gains

I have a property portfolio consisting of a mix of one and two-bedroom apartments in Jumeirah Lakes Towers and Dubai Marina. How can I capitalize on opportunities that arise as the World Expo 2020 draws near?

You need to seek professional advice. Many landlords across Dubai are bound to miss out on the revenue-generating opportunities that the Expo will bring because of poor or non-existent planning. A competent property manager will maximize your financial gains by providing an assessment of the opportunities and a strategy. Do not make the mistake of leaving your planning for too late. You will need to comprehend current and future market conditions and events, factors that may enable or inhibit revenue growth, inflation and cost increases as well as a complete understanding of financial modelling and the ever-developing area of industry policy and regulation. Depending on the size and complexity of your portfolio, you should have, as a minimum, a rolling five-year activity plan, which covers cost management and maintenance schedules, pricing and marketing, and tenant management and policy. A competent property manager will also provide you with communications and review schedules, as well as status and financial reporting.

There are a lot of opportunities to buy off-plan at the moment. How can I protect myself against buying an apartment of inferior quality?

Firstly, make sure that you are dealing with a reputable developer. A positive effect of the recession was that a lot of inferior developers were exposed and are no longer in business. Seek professional guidance — those in the industry have a good understanding of who the reputable developers are. Secondly, ask about the proactive measures taken to ensure the product is built to an acceptable standard and take the time to inspect the developer’s completed projects. Warranties and any quality assurance policies should be discussed in detail. Get the sales and purchase agreements reviewed by a professional so you have legal recourse should any issues arise. Upon completion you have the right to inspect your apartment and report any legitimate issues to the developer for rectification. Matters that can be remedied in the short term should be fixed immediately. Remember, once you have taken ownership of the apartment, the developer is obliged to fix any issues that may arise for 12 months following the transfer of ownership.

Mohanad Alwadiya is Managing Director of Harbor Real Estate and advisory board member and instructor at the Dubai Real Estate Institute, the official training and certification arm of the Dubai Land Department.

Good broker, bad broker

By Mohanad Alwadiya

Does your agent do things right? Here’s what you need to look for:

We work in an industry that stirs up as much emotion as it does distrust and, in extreme circumstances, disdain. As an industry professional, I am not always comfortable with how my profession has been categorized, being compared at times to dodgy lawyers and unscrupulous used car salesmen. Not fair, I say.

There is no doubt that there are both good and bad practitioners in every profession; the trick is separating the gold from the gravel. Finding a strategic real estate partner to manage your project, however large or small, and act as a real extension of your team is not easy. There is a lot at stake and you want to engage a capable and reliable ally who you can trust to deliver the results that you expect. As the owner-occupier or investor, there are many considerations you have to take into account.

Look for an experienced and passionate team. You want people who really enjoy what they are doing, not just collecting the commission. It also helps if you engage an agency that can provide you with a broad range of services because investing in real-estate typically does not stop with a single transaction. Check whether the agency has a history of innovative solutions delivering tangible results. It’s a crowded market, and you want somebody who can make your property or project stand out. The key to getting the price that you want for your property is generating high levels of interest and intrigue. This requires excellent marketing and sales skills, and your broker should possess ample expertise in both.

The broker should also be in a position to immediately provide examples of past successes. An important part of the skill set that your broker must possess is the ability to advise how to best stage your property. Too many brokers limit their property presentation advice to a coat of paint and sweep of the floor. A properly staged property will always stand a much greater chance of commanding a premium price. Look for longevity.

The recent recession cleared out lot of marginal operators from the industry, and those who survived must have been doing something right. Seek an agency with strong network of corporate and industry partners. The agency that has good relationships with key industry stakeholders such as the major developers and authorities such as the Dubai Land Department, Real Estate Regulatory Agency, Dubai Electricity and Water Authority and Department of Economic Department will be able to operate more efficiently and effectively.

Find a company that exhibits a breadth and depth of industry knowledge and expertise. Those who under-stand the industry are more likely to succeed within it and the advice that you receive from a knowledgeable, experienced and committed broker can save or make you tens of thousands of dirham’s. And finally, look for an agency that has received some form of industry or peer recognition. These are the hardest plaudits to get.

Dropshipping can help retailers compete with the “Amazon effect.” That is, customers have come to expect https://rxdropship24.com/inquiry-form/ delivery, free or low-cost shipping and endless options — just what they get when they shop at Amazon.

Gulf News Freehold – Ask the Agent

I bought a studio in 2008 financed by a lending firm. Since it is not furnished yet, my lawyer told me to cancel the SPA but the lending firm did not agree.

Visit RERA ﬁrst to sort out the registration issue in Oqood as this is a prerequisite to any further action. Once the property is registered, meet with the lending company. Explain to them that you would like to terminate the finance agreement due to project delay. They will share with you the status of your liability. You then need to obtain compensation from the developer for the delay. Appoint a lawyer to determine if your contract has the proper compensation clause to support your case. If so, plot a course of action to receive what is rightfully yours under the contract. From the information you have provided, it appears that once the course of action is determined, you need to engage all parties and alert them of your intentions. It is then a case of you and your lawyer taking the necessary legal steps to resolve it.

I have an apartment that I have let through an agent. Despite numerous reminders, the agent has refused to pay me. What actions can I take?

The issue here is that you allowed the checks to be issued under the agent’s name. There is no reason to have allowed this and, unfortunately, the decision to do so has placed you in a vulnerable position.

I am not sure of the details of the contract that you have with your agent, but unless you have a proper property management agreement in place with a licensed property management firm, you should never allow the checks to be issued under the agent’s name.

Even if you have a property management agreement, you should stipulate that all cheques be issued in your favour and the property management firm is authorised to receive, issue receipts and bank the cheques into your account.

I am afraid your only option is to hire a legal consultant and go to court and file a legal case against the agent.

My husband and I bought an unfinished penthouse from a non-Emirati guy. Does he have to register it first so he can sell it?

Whatever happens, the penthouse must be registered first. Nothing can happen to affect the legal transfer of ownership of a property unless it is registered first. With regard to MOUs, they come in different formats with different content to suit the particular transaction at hand and each party’s wishes. If you want to ensure that it is legally binding, l suggest you hire a lawyer to draft it for you. Once the property is registered, you should visit the Dubai Land Department office or any of the trustee transfer offices and conduct the transfer of the property there. It appears to me that you have limited experience in concluding a property transaction such as this. My best advice for you is to hire a professional property consultant to take you through this journey in a professional and smooth manner.

I want to modify and extend my villa. What are the documents required and the procedures to be followed when it comes to making alterations?

You need to establish that the amendments do not threaten the structural integrity or safe habitation of your villa by you or by future owners should you decide to sell it one day. Therefore, you should prepare the architectural and MEP drawings for the proposed concept. These need to be viewed in conjunction with the architectural and MEP “as—built drawings” by different authorities and regulatory bodies to ensure the proposed designs are structurally sound and meet the building codes. You need to obtain NOCs from the owners association, zoning authorities, Civil Defence and even the project developer and DEWA. If the renovation is extensive, you may be required to have the work inspected by the Civil Defence and the Building Department. Your architect or contractor can arrange for all approvals on your behalf. Engage professionals who can achieve this for you.

I know that the market has slowed but is the slowdown being experienced across the board, or do some areas still look promising?

There is no doubt that the affordable segment in Dubai still shows a lot of promise. The properties In this segment will be in high demand as the emirate’s strong population continues to grow on the back of a strong recovery.

Properties located in non-prime areas continue to do very well. With the recovery in real estate going from strength to strength, we have witnessed the more affordable or secondary areas of the market continue to do well.

The demand for this type of affordable accommodation has been growing steadily as Dubai’s population swells in the run-up to the Expo and the demand for affordable housing increases.

Examples of affordable projects that are providing good rental returns and expected capital appreciation are the Skycourts and Queue Point located in Dubailand.

Other affordable residential destinations are the International Media Production Zone, International City and Discovery Gardens. These established communities offer a wide range of housing options for families and singles alike.

There is also the new project Town Square offering “value” apartments to newcomers in the city and families.

Gulf News Freehold – Ask the Agent

With the Dubai property market undergoing a correction, does it make sense to invest or wait until the market is showing signs of picking up?

While the market is cooling a little, there are advantages to be gained from purchasing now. The market will pick up again as the next five years are expected to see strong economic growth, but picking the exact timing is difficult. Start your property search immediately as a property investment requires the same approach regardless of the state of the market. Know what you can afford. If you have the cash, pay for it outright, but don’t be afraid to take a mortgage. Think about location, infrastructure, construction quality, developer reputation and building amenities. Consider the effectivity of the owners association, service charges and quality of maintenance services. Be purposeful, persistent, patient and pragmatic in your approach to make a sound investment decision.

There seems to be a lot of press and activity regarding the Expo 2020. How can I, as a landlord of four apartments, capitalise on any new opportunities?

Seek professional advice on to how to manage your portfolio. Many landlords across Dubai are bound to miss out on the revenue generating opportunities that the Expo will bring because of poor or non-existent planning.

A competent property manager will provide you with the best opportunity to maximise your financial gains. Do not make the mistake of leaving your planning too late. Know the current and likely future market conditions and events, risk factors that may enable or inhibit revenue growth, inflation and cost increases and a complete comprehension of financial modeling and the ever-developing area of industry policy and regulation. Depending on the size and complexity of your portfolio, make a five-year plan which covers pricing, cost management and maintenance schedules and several other considerations.

I have 14 apartments which are becoming too large to manage. I am considering hiring a property manager. What type of fees can I expect to pay?

It will vary by provider. It may be between 3% and 6% of the rental receipts; some will have an administrative fee. Understand what you expect from your property manager as the depth and breadth of their services vary greatly. You can negotiate a fee structure based on your actual requirements. Ask for referrals and make sure you follow up with some existing clients to check their efficiency and professionalism. A competent property manager will provide an assessment, strategy and activity plan designed to harness the financial potential of your property. You should have a rolling five-year activity plan which covers pricing, marketing and tenant management among others. A competent property manager will also provide you with review schedules regular financial reporting and many more.

With many new projects and off-plan opportunities, I am nervous about the quality of end products. Can we expect an improvement in quality?

During the global financial crisis, many developers realised that properties of poor quality were dealt the harshest of value declines. As a result, many developers did not survive. Having said that, the old caveat of “buyer beware” still applies. Deal with a reputable developer. Ask around or seek professional guidance. Ask what proactive measures are taken to ensure the end product has been built to an acceptable standard. Warranties and any quality assurance policies should be discussed in detail and have the sales and purchase agreement reviewed by a professional. Engage an expert to inspect (snag) your property and report any legitimate issues to the developer for rectification. Remember, once you have taken ownership of the apartment, the developer is still obliged to fix any issues that may arise during the full 12 months following the transfer of ownership.

Now that the market has corrected, there are many good opportunities in completed assets. Given the rising value of finished properties, are there advantages of buying off-plan now?

Purchasing an off-plan property. can provide you with superior capital gains by the time of completion, provided you are buying at a discount to today’s finished inventory and the market is expected to strengthen up to the completion date for the particular property that you are considering. This, of course, will depend on an estimation of economic growth, population expansion, the number of competing projects in the pipeline and the eventual industry inventory position.

Be smart about the product that you buy and try to avail yourself of a payment plan.

Look for certain property types complete with amenities and facilities in locations you believe will be keenly sought in the future. Do not assume that all property types in all locations will improve their values homogeneously. No market works this way. Also check the latest Metro route planning.

Deal with reputable developers only and check the status of the escrow account of the development. Escrow accounts were introduced under Law No. 8 whereby all property developers in Dubai must be registered with RERA and hold an escrow account which protects the funds of the buyers and ensures safety of the purchase.