Monthly Archives: August 2012

Visitors to Cityscape Global

Cityscape a Month Away – What Impact on the Dubai Property Market?

So, with just over a month to go until Cityscape Global opens its doors in Dubai, we ask what impact the region’s premier real estate exhibition will have on the Dubai property market and what investment opportunities will be on show.

Cityscape logo

Cityscape takes place at Dubai International Convention and Exhibition Centre, Dubai from 2-4 October 2012

Formerly Cityscape Dubai, and now Cityscape Global, with three mad days of business, presentations, and ‘exclusive’ announcements, is almost upon us.

The show has grown and shrunk in line with the real estate industry in Dubai but is back this year with predictions of a 25% increase in delegates on the 2011 attendance of 17,133.

The 2008 peak of 40,000+ delegates is still a couple of years away, but organizers are certainly talking up this year’s show, which will be further boosted by an increase in international participants.

International pavilions are set to take up 50% of the show for the first time in the exhibitions 11 year history. Delegations from Turkey, Russia, Qatar, Egypt, the Americas, India and Iraq will be among the countries participating all looking for Gulf money to invest in their latest projects.

What of the UAE developers? All of the big boys will be in attendance including DAMAC Properties, Emaar Properties, Dubai Properties Group and Nakheel showcasing what Dubai and the UAE has to offer.

Reports suggest that there could be a few new projects launched this year and there is a lot of talk in the forums that an announcement on an expansion into new areas for the ‘big four’ is expected.

With sentiment in the Dubai property market as high as it has been in the past couple of years, there is certainly a feel good factor going into Cityscape Global this year.

One key sector to keep an eye on will be the banks. Mortgages are being offered again, many with fewer than 5% interest, and we expect the banking sector to announce even more support for the Dubai property market during the show.

While the days of clients buying off-plan properties on the stand are behind us, Cityscape Global still remains the litmus test for the Dubai property market and we wait with eager anticipation for this year’s edition.

Cityscape Global runs from 2-4 October 2012 at the Dubai International Convention and Exhibition Centre.

To buy or not to buy? Dubai is the question.

As the Dubai property market sees encouraging signs that prices are returning, is it the right time and opportunity to move from a rental property and purchase your own home in Dubai?

As property prices increase, so do rental yields. This is great for investors who can capitalize on extra income, but is it also an opportunity for tenants to purchase property for themselves.

Financial institutions are starting to put liquidity back into the Dubai property market and RERA, the Government Department in charge of legislating the purchase of property has relaxed rules for overseas investors.

So, should we make the big step? Well, consider how much you spend a year on your annual rent in Dubai, with the likelyhood of a 5% increase year on year.

This could well cover the mortgage payments on the same property and you would own it out right within ten to fifteen years. In addition to the fact you would be using your accommodation allowance to buy out your own property, you will also benefit from the growth you could see in the valuation of the proprety.

At the moment your rent goes to a landlord and funds your living year on year. By purchasing now, even if the property did lower in value for a short period, will it drop by the same amount you would have spent in rent? If not, you would still be better off buying?

Also, there are many serviced apartments coming onto the Dubai property market in the next few months which will allow you to live there for as long as you like while receiving the five-star luxury service that comes with it, but the management company would also rent out your property on your behalf should you decide to take a couple of months away, or return permanently back home.

Certainly the financial benefits of buying over renting prove attractive and now that banks are starting to offer finance deals again, the proposition becomes even more attractive.

If you are reading this from outside Dubai; in the UK, India, Russia or USA maybe, how are your investments performing? What are the current interest rates? What has happened to the value of your home? Is it time to look towards your future by investing in a city which is showing strong returns on property investment?

Are you thinking of buying your own place in Dubai? What excited you about having your own property in one of the fastest growing cities in the world? It it the right time to step into the Dubai property market? We would love to hear your comments by posting about the Dubai property market below or you can email us at editor@dubaipropertyinvest.com

Marina Terrace in Dubai Marina

DAMAC Properties Reports Dubai Real Estate Market is on Road to Recovery

Covergae in Khaleej Times 28 August 2012

DAMAC Properties interview with Khaleej Times

One of the largest developers in the Middle East has told Khaleej Times this morning that the Dubai real estate market is on track and expected to see ‘an increase in valuations throughout the rest of the year and into 2013’.

DAMAC Properties Senior Vice President, Niall McLoughlin, said that ‘many areas have already recovered. Prices have stabilised last year and have continued to grow at a steady pace in 2012. Prime real estate areas such as Dubai Marina, Sheikh Zayed Road and the Burj Area are performing strongly as the infrastructure is in place and demand is high.’

As a resident of Dubai for more than five years it is clear to see that the cranes are moving again, towers are growing, floors are being added and more projects are reaching handover stage.

Over the past few years and since the 2008/09 dip there was a period of cynicism with residents and international investors, many who had had their fingers burned, reluctant to accept the commentary of developers who were trying to inject life back into the market.

However with Emaar, Nakeel and Aldar returning to profit and the Land Department announcing the highest number of unit sales and unit value recorded during any July on record, is it time to recognise that Dubai is a strong investment opportunity again?

People are already telling me that if I don’t buy into the market now I will be left behind (again) and projects will be out of my price bracket.

I think the key is to invest in the Dubai property market for the long-term, not the short term ‘flip and win’.

If you are looking at an investment in a prime area such as Dubai Marina or the Burj Area, prices are almost certainly going to grow as the popularity of these areas drives demand. Rental prices are already pushing past the standard 5% pa and while there remains good supply in other areas, people will still want to live in the luxurious areas. The positive comments from DAMAC Properties come on the back of two recent independent reports both pointing to an upward turn in Dubai’s property market valuations.

Knight Frank reported that Dubai’s prime property had seen growth of nearly six per cent in the first half of this year.

According to the report Dubai remains in the top performing 15 cities worldwide and number one in the Middle East throughout Q2 with buoyant Asian markets and resurgence in the main European capitals providing a stimulus for growth.

In a sign of further support to the sentiment that Dubai’s real estate market is on its way back to former glories, a report by Asteco stated average apartment sales prices had increased between eight to nine per cent from Q1 – Q2 2012 in key locations including Dubai Marina and Downtown Dubai.

View looking at Dubai Marina

World’s third-largest residential tower adds to impressive skyline in Dubai Marina

View looking at Dubai Marina

From the Palm Jumeirah looking back at Dubai Marina

More than 700 new apartments are being handed over in Dubai Marina following the completion of Elite Residences, the world’s third-largest residential tower.

According to The National this morning, Elite Residences is 91-storeys high and stands at 381 metres.

It is the latest tower to be handed over in Dubai Marina this year, following the delivery into the market of DAMAC Properties’ Ocean Heights and Princess Tower.

Dubai Marina is one of the most popular locations in Dubai, with enviable views across the Palm Jumeirah.

Dubai is currently home to the world’s top four tallest residential towers.

Interview with UAB CEO Paul Trowbridge

CEO of United Arab Bank calls for more support for Dubai’s property market

There is an interesting interview in Khaleej Times this morning with the Chief Executive Officer of United Arab Bank, Paul Trowbridge.

In it he says: “We have seen property prices starting to recover in key areas. Banks have not fuelled this growth; buyers are seeing value in these properties and have therefore started to enter the market.”

“We believe there is genuine demand from end-users and therefore banks should play a role in supporting such purchases,” he added.

You can read the interview in full here.

It is a further encouraging sign that the property market in Dubai is seeing genuine signs of growth, which will clearly be strengthend by the support of the banks.

No real estate market can thrive on its own. It requires the support of the financial institutions for both the end consumer and the contractors

We would love your thoughts on Paul Trowbridge’s comments. You can post below or email us at editor@dubaipropertyinvest.com

Foreign Investors Return to Dubai’s Property Market

Foreign investors are returning to the Dubai property market in strong numbers, with the publication in the last week of a report which shows that AED 22 billion of overseas money was injected into the market in the first six months of this year.

Dubai’s Land Department revealed that 12,875 properties, made up of buildings, land, apartments, and residential villas changed hands.

Buyers from India, with a population of more than a billion, were perhaps not surprisingly the heaviest investors purchasing 2,153 properties at a total value of AED 3.75 billion.

With a relaxing in the laws pertaining to foreign investment in the Dubai property market and some great offers on price per square metre at the moment, investors are showing a keen interest.

More than half of the investment came from investors from the GCC, making up AED 12 billion of the total, with Emiratis topping the list of those taking apartments.

With independent reports over the past month reporting growth of anything from 5-9% across Dubai, is it time to say that Dubai’s property market is storming back? While there is still a way to go until we reach the numbers of 2007/8, it is clearly a brighter picture which shows that confidence is returning from investors all over the world.

What are your thoughts on the current state of play in the Dubai property market? Are you an investor thinking of buying now, or is the rental market still attractive.

Amazing Sunset in Dubai

Welcome




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Welcome to www.dubaipropertyinvest.com the new home of everything to do with the property market in Dubai.

We aim to bring you the latest news and insight in Dubai real estate and project development with a look at the latest research, construction updates, regulation developments and a focus on some of the most impressive towers in the Emirate.

Dubai remains one of the leading property investment markets in the Middle East and is at the forefront of some the greatest architectural design anywhere in the world. Amazing things happen and fast. We are very proud of our city and take pride in the investments to build a globally-recognised metropolitan city that welcomes all cultures.

We launch this blog at a time when the real estate market in Dubai is showing a return to its heyday, with occupancy and real estate valuations rising month by month. While there is a longer-term and more pragmatic view to the growth of property valuations, investors are recognising the inherent value in Dubai property investment.

We hope to pick out some of those opportunities, assess the market and see where we can start or grow our real estate portfolio.

We look forward to sharing with you our thoughts and hope that the blog can generate a lot of conversation in the coming weeks and months. You can email us with your comments and we will share as many as possible.