Minute with Elysian

We are proud to launch the newest feature to our website called “A MINUTE WITH ELYSIAN” –a variety of videos, hosted by one of our top agents Maral Khalili, geared to educate buyers and sellers on the various steps involved in purchasing and selling properties in Dubai. No longer should you have uncertainty about the real estate market in Dubai. These simple videos will help clarify your frequently asked questions.

Emaar picks London for 2015 first tower launch

Emaar Properties, Dubai’s largest property developer, is set to commence sales for its first towers of 2015 on January 24, which are the remaining two towers of the six-tower Dubai Creek Residences.

The launch of the towers, part of the multi-billion-dollar Dubai Creek Harbor at The Lagoons master development, will be simultaneously in Dubai, Abu Dhabi and London.

The two towers will be 30- and 35-storeys high, with units ranging between 880 and 2,154 square feet.

Dubai Creek Harbor at The Lagoons is a joint venture between Emaar and Dubai Holding.

In November 2014, Emirates 24|7 reported that developers had not increased launch prices of the units and were selling units facing the Creek for Dh1,850 per square feet (psf) and ones not facing the Creek at Dh1,400 psf.

Dubai Creek Residences cluster comprises six towers, in Dubai Creek Harbour at The Lagoons, which will house 3,664 office units, eight million square feet of retail space, 39,000 residential units and 22 hotels with 4,400 rooms.

The centerpiece will be the Dubai Twin Towers, the tallest twin towers in the world, but no announcement has been made of its launch.

Emaar Chairman Mohamed Alabbar said The Lagoons is three times the size of Downtown Dubai and a significant project for the emirate.

The Lagoons master development was originally launched in April 2006 and was to cover an area of 70 million square feet, comprising seven detached islands that were to be interlinked with bridges. The value of the project was then quoted at Dh65 billion.

Alabbar has previously said that property price spikes scare him, but the market has now cooled down and is healthy.

Earlier this year, in a column published in ‘Arabian Business’, he said Dubai’s property sector will continue to emerge as a more mature market in 2015, with the real demand now coming from end-users and long-term investors.

“The concerted efforts of the Dubai government have helped manage the supply pipeline, and at the current trends of population and tourism growth, demand is set to remain healthy,” he added.

 

Source “Emirates 24×7″

Dubai rents fall for the first time in three years

Dubai: Tenants can now breathe easy as realty experts predict residential rents to remain stable or fall slightly next year.

“Rents in Dubai are now close to their peak. They have risen 50 per cent in the last two years and the market is showing signs of slowing down. In the last three months, rents largely remained stable or dropped slightly in certain parts of Dubai. Even areas like Discovery Gardens, International City and Dubai Sports City which recorded particularly steep rent hikes over the last year saw marginal declines in October and November. Going forward, rents are likely to remain stable in 2015,” Craig Plumb, head of research at JLL MENA, told XPRESS.

According to Asteco Property Management, rents for three-bedroom apartments in Dubai Marina range from Dh150,000 to Dh270,000. In Downtown Dubai, they hover between Dh210,000 and Dh290,000. In Discovery Gardens, two-bedroom apartments fetch between Dh80,000 and Dh90,000.

No significant changes

Plumb said rents in Bur Dubai and Karama are unlikely to see any sharp increase or decrease as not many new buildings have come up there. “The rental market in Bur Dubai and Karama is mainly coming from people renewing their existing contracts which are governed by the rent cap. Landlords in these areas will not be able to hike rents significantly.”

According to the Real Estate Regulatory Authority’s (Rera) rental calculator, the average rent for a two-bedroom apartment in Al Mankhool area in Bur Dubai is between Dh80,000 and Dh95,000.

Those paying 21 to 31 per cent less than the average may see a 10 per cent hike.

Mario Volpi, managing director, Ocean View Real Estate, said villa communities like Emirates Living and pockets of Arabian Ranches have seen a softening in rentals. “Landlords will not be able to lease their property if they ask for high rents. A property owner who was asking Dh320,000 for his four bedroom Meadows villa had to finally settle for Dh275,000 to secure a rental deal,” he said.

“Other areas like Dubai Marina, Jumeirah Lakes Towers (JLT), Palm Jumeirah and Downtown Dubai are recording stable rents. We are not seeing any sharp movements one way or the other and I don’t believe this is going to change in 2015,” he said.

According to Ocean View Real Estate, two-bedroom apartments in JLT fetch between Dh120,000 and Dh148,000. “Rents for three-bedroom townhouses in The Lakes hover around Dh225,000. In International City, two-bed-room apartments fetch around Dh75,000,” he said. John Stevens, Asteco managing director, said apartment and villa rentals dropped two and three per cent respectively in the last quarter.

Around 30,000 new homes are likely to be added in the next two years in New Dubai areas which will make rents even more affordable. “It may feel like a long wait for many frustrated tenants, but this will also provide the much-needed stock in the run-up to Expo 2020.”

According to Volpi, landlords will have to make their rent payments more flexible in order to secure a tenancy contract. “Tenants are looking for landlords offering flexible rental plans. If landlords are rigid and ask for a single cheque, they are likely to find it hard to lease their property. Ideally landlords should agree to at least four cheques if they want their property taken up quickly.”

Dubai is world’s hottest property market

he global house price boom continues with house prices jumping in 30 of the 39 world’s housing markets, according to Global Property Guide.

Though Asian governments in particular are imposing cooling measures to avoid a repeat of the past as prices are rising, overall the real estate prices are rising, the organization said.

Here is the list of five cities where property prices saw the highest growth in the past 12 months:

#5 Turkey


(Shutterstock)


Turkey is the fifth best performer with house prices increasing by 7.51 per cent during the year to Q3 2014, after an annual rise of 4.65 per cent in the previous year. The Turkish economy is expected to expand modestly by 3 per cent this year, from annual growth rates of 4 per cent in 2013.

#4 UK


(Shutterstock)

The UK property market continued to show impressive performance with nationwide house prices rising by 8.95 per cent y-o-y in Q3 2014, a sharp improvement from an annual increase of 1.47 per cent in the previous year and the second biggest increase since Q4 2004.

The economy grew by 3 per cent in Q3 2014 from a year earlier, after annual real GDP growth rates of 3.2 per cent in Q2 and 2.9 per cent in Q1 2014. The UK economy is projected to expand by 3.2 per cent in 2014.

#3 Ireland


(Shutterstock)
Ireland retained its spot as the third best performer in the global survey, with residential property prices surging by 14.52 per cent during the year to Q3 2014, a remarkable improvement from a year-on-year (y-o-y) increase of 3.45 per cent in the same period last year. House prices rose strongly by 6.43 per cent q-o-q in Q3 2014. The Irish economy is projected to expand by a healthy 3.6 per cent this year, the IMF has said.

#2 Estonia

(Shutterstock)

Estonia maintains its second position as the best housing market in the world. House prices rose 2.51 per cent quarter-on-quarter (q-o-q) during the third quarter.

Estonia’s economy is expected to grow slightly by 1.2 per cent this year, from annual growth rates of 1.6 per cent in 2013 and 4.7 per cent in 2012, according to the IMF.

#1 Dubai

(Shutterstock)

Dubai’s real estate market is the only one in the world that has seen over 140 nationalities investing in it and the new report by Global Property Guide reveals the emirate remains on top of the chart of the world’s best performing markets for seven consecutive quarters.

Property price increases have, however, decelerated to an average of 23.73 per cent during the year to Q3 2014, down from annual increases of 33.26 per cent in Q2 2014 and 31.57 per cent in Q1 2014. House prices dropped 1.13 per cent during the third quarter, the company said which tracks prices in 39 global cities.

Dubai saw one of the worst housing crashes from Q3 2008 to Q3 2011, with house prices falling by 53 per cent. Then in Q2 2012, Dubai’s housing market started to recover and since then Dubai has seen double digit house price increases.

The UAE’s economy is expected to expand by 4.3 per cent in 2014, after real GDP growth rates of 5.2 per cent in 2013 and 4.7 per cent in 2012, according to the International Monetary Fund (IMF).

Source emirates247

Dubai initiative sees 43 stalled projects worth $2.7bn given green light

Stalled projects worth AED10 billion ($2.7 billion) have been revived by Dubai Land Department (DLD), according a senior official.

A total of 43 projects that were stalled have been revived through a DLD initiative called Tanmia, which looks after incomplete projects in difficulty and not progressing, according to Emirates 24/7.

Launched in 2011, the initiative sees DLD play a mediator role between developers of such projects and investors who might be interested in buying and/or investing in same.

“We have facilitated takeover of 39 projects valued at AED10 billion by various developers under our Tanmia initiative,” Duaa Issam Dablan, senior deputy director, Dubai Land Department, told a real estate seminar last month.

 “We arranged funding for another four projects under our programme,” he added.

Emaar has ‘project plans for the next 150 years’

ubai developer Emaar is planning project to last for up to the next 150 years, it’s chairman Mohamed Alabbar told reporters as he emphasised the company’s long-term vision.

Last week, Burj Khalifa developer Emaar Properties and investment firm Dubai Holding launched its latest multi-million project known as Dubai Creek Harbour at The Lagoons.

The mega project will include 3,664 office units, 8 million square feet of retail space, 39,000 residential units and 22 hotels with 4,400 rooms, while the centrepiece will be The Dubai Twin towers, which will be the tallest twin towers in the world.

Speaking on the sidelines of a fashion event this week, Alabbar told The Daily Star newspaper that Emaar had no plans to slow down its massive construction drive “in the near future” and “are also expanding in Saudi Arabia, Egypt and India.”

With further developments in Downtown Dubai around the iconic Burj Khalifa and The Dubai and the luxury Dubai Hills community among its plans, Alabbar said it had projects in the pipeline for many years to come.

“Emaar’s projects are long term and we don’t make plans for the next five years but for the next 50 years, 100 years and 150 years… As long as the country [is witnessing economic] growth we will pursue our projects. We are very optimistic about the future,” he was quoted as saying by the Beirut-based The Daily Star newspaper.

Earlier this year, the property giant was rolling out one new project every week in 2014 across Dubai, with sources suggesting the trend could continue throughout the year.

“You just need to stay alert and weigh your options,” he continued. “When the market is calm you slow down your drive but when it’s booming you move full force.”

Dubai’s real estate has gone from boom to bust to boom again in the space of eight years. The market soared late in the last decade, then crashed as a bubble burst, cutting residential prices by more than half and nearly causing Dubai to default on its debt.

Since then, an influx of foreign money, particularly from Arab countries blighted by war and civil unrest, has helped Dubai’s property sector rebound strongly. Prices are now roughly around pre-crisis levels, up by about a third from a year ago.

“We will continue to supply the market – supply in the market is good for our customers because it keeps prices at a reasonable level,” Alabbar told reporters at the launch of its latest project at Dubai Creek.

“In 2013, things went crazy because supply was limited. For me as a long-term developer, this spike scares me, so I’m glad people are saying, ‘Oh, the market is cooling down.’ I think that is healthy.”

A September report by property consultants JLL found Dubai’s residential rents and sales prices rose 2 percent and 1 percent respectively in the third quarter of 2014 compared to the previous quarter. That was slower than 3 percent and 6 percent increases in the second quarter.

Source: Arabian Business

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