Tag Archives: Dubai Marina

Dubai Marina is a great place for investment

Top Tips For The First-Time UAE Real Estate Buyer

Buying real estate overseas, especially for the first time, can be a daunting prospect, but who hasn’t aspired to owning their own home or apartment in the sun? The monumental investment indicates that you’ve accomplished your financial goals and are looking forward to a life of security. When you buy a property in the United Arab Emirates (UAE), that security is taken a notch higher with visions of a luxurious life in sumptuously designed apartments or high-end hotel penthouses. Whether you’re looking to live a lavish life in an apartment or a penthouse, you’ll want to ensure your property investment is the right one.

While there are many laws designed to protect real estate buyers in the UAE, it still pays to do your due diligence to avoid any problems. Here are our top tips to consider when you’re looking to buy UAE real estate property.

Clarity

Transact with the actual owner or the official broker. You want to be able to deal with people who either own the property or have a legal standing to sell the property. Make sure that you are communicating with the right people before you even visit the property or make further inquiries  When you’re looking at real estate development, ensure that the developer and the project are registered with the relevant local government agency and can supply you with details of Escrow accounts, and agreements with the main contractor.

Research

Take your time. Consider the market value against the location and potential growth of the area. This will help you buy an apartment or a villa at the best possible price, with a potential for considerable profits when you decide to resell it in the future. Bloomberg Businessweek reported that the UAE real estate market has been experiencing falling property values by 65 percent during its four-year turn. But the glamorous emirate is seeing strong signs of recovery as prices for residential properties in the Burj Khalifa and Marina area shoot up 15 percent in 2012 alone.

Use Experts

Get the expertise of a surveyor when inspecting the property you want to buy. This will allow you to have a better idea of the property’s actual value, and not its projected market value.

Read

And finally, always read the contract before you sign it. If you’re able to, get a lawyer to look at it to make sure that everything is as you expect before you step in.

Buying property in the UAE is a great accomplishment. Ensure your financial security by making the right property purchase. Consider these tips and find your dream home today.

 

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DAMAC Properties launches projects in Dubai Marina and Riyadh with FENDI Casa

DAMAC Properties Partners with FENDI Casa on Projects in Dubai and KSA

During an exclusive global launch in Dubai this morning, DAMAC Properties announced a major regional strategic tie-up with luxury global brand FENDI, to provide interior designs on projects in Riyadh in the Kingdom of Saudi Arabia and Dubai, UAE.

The largest private luxury developer in the Middle East revealed details of DAMAC Esclusiva Luxury Serviced Apartments, a 150 metre high tower overlooking the Kingdom Tower in Riyadh, which will provide refined luxurious interiors by the Italian fashion house for more than 100 luxury serviced apartments.

The two companies will also partner on the interiors for exclusive private apartments in DAMAC Residenze in the Dubai Marina.

The concept of continuity between building and interior space guides the ventures. The two projects are not only furnished with distinctive pieces from the FENDI Casa collection: the whole of the interior design is conceived by FENDI.

The state-of-the-art projects, which are currently under construction and set to be completed in 2016, will provide the highest standards of refinement.

“DAMAC Properties is thrilled to be working with FENDI to take the standards of luxury home living in the Middle East to a new level,” said Hussain Sajwani, Chairman, DAMAC Properties. “Together we can bring an experience to the market which the region is yet to see. It is a perfect synergy between two visionary companies looking to reach the pinnacle of luxury living.”

“DAMAC Esclusiva Luxury Serviced Apartments in Riyadh are being made available by invitation and pre-approval to a limited number of VIP’s only, reflecting the quality and refinement on offer. We believe these will be the most desirable serviced apartments available anywhere in the Middle East,” he added.

“FENDI is a luxury house, based on the fearless exploration and experimentation of luxury handicraft and strong appreciation of sophisticated materials. The Riyadh and Dubai projects are a perfect example of our poly-sensorial, three-dimensional approach to making beautiful things,” said FENDI Chairman and CEO Pietro Beccari.

Mr. Sajwani was joined at the launch by Ms. Carla Fendi, Honorary President of FENDI and the Italian Ambassador to the UAE, Mr. Giorgio Starace, at a press conference in the Dubai International Financial Centre this morning.

“The partnership between DAMAC Properties and FENDI marks an important step forward in the growth of ‘Made in Italy’ in the United Arab Emirates,” said Mr. Starace. “FENDI is an iconic Italian brand, loved across the world for quality and style. With its sophisticated, top level quality standards it will contribute remarkably to spread the most exclusive Italian luxury tradition in the UAE. The two magnificent projects that FENDI and DAMAC Properties will develop in the Kingdom of Saudi Arabia and the UAE reflect a clear trend of ‘Made in Italy’ abroad, especially in this country, a successful trend which is more and more oriented at targeting the highest echelons of the market, offering top level products that represent the best of Italian culture, tradition and know-how.”

Each project has a specific and distinct identity. A subtle dialogue with the surrounding place makes the local atmosphere, culture and climate immediately palpable. DAMAC Esclusiva Luxury Serviced Apartments in Riyadh is a contemporary FENDI space inspired by Oriental tradition. The project will be managed by DAMAC’s own Hospitality division, a five-star hotel and personal service Management Company to provide the levels of luxury expected of VIP residents.

Whilst operating the serviced apartments within DAMAC Esclusiva, DAMAC will offer owners the personal touch of a VIP luxury 24/7 service, while investors will also be able to benefit from an attractive return on their apartment in the months they do not reside through a rental pool programme.

“The real estate market in both Riyadh and Dubai are again performing strongly, especially in the high-end, luxury sector,” added Sajwani. “We believe there will be a very high level of anticipation for these apartments from nationals and overseas investors.”

Each apartment will be fully designed by FENDI Casa reflecting the authenticity, desirability and uniqueness so strongly associated with FENDI. The reception and lobby areas of both the towers will also be styled by the FENDI Casa team to create a luxurious experience from the moment guest’s step inside.

Both the DAMAC Esclusiva Luxury Serviced Apartments in Riyadh and DAMAC Residenze in Dubai will include the highest standards of finishing and decor including relaxed spa and swimming pools, gymnasiums, restaurants and cafes.

The DAMAC Residenze apartments in Dubai Marina are available for investment now, while to qualify for the properties in DAMAC Esclusiva Luxury Serviced Apartments in Riyadh, applications can be requested on-line.

FENDI was established in 1925, with the first handbag shop and fur workshop in Via del Plebiscito, Rome. The company is now listed as one of the top ten of the world’s luxury brands according to Millward Brown Optimor’s and has more than 190 boutiques in over 35 countries around the world.

Finding the Ideal Property: Dubai Buyers’ Guide To Property

Skyscrapers with multiple swimming pools. Lavish designer high-rises. Contemporary sprawling villas. Properties in Dubai are nothing short of exquisite when it comes to architecture, amenities, and overall design. It’s no wonder then that many expats choose to call this thriving spot in the United Arab Emirates their future home. If you have plans of moving to this affluent emirate, discover the many types of residential property Dubai builders are developing these days, and find your ideal home.

If you live alone and have no immediate plans of starting a family, Dubai’s many luxurious hotel-style residences are quickly becoming the number one choice. This is especially recommended for individuals with busy schedules and a discerning lifestyle that demands five-star service.

When price isn’t a concern, there are a host of opportunities for both investment and a place to call home. You can find everything from four-bedroom penthouses, to studios. Your decision will depend on whether one serviced luxury hotel has more amenities (e.g., Jacuzzi, luxury spa, modern gymnasium, etc.) than the other residential hotel. Also, consider the views available from your suite. After all, why live in a serviced residential hotel if you aren’t going to have a stunning view when you retire at night? Another key factor in Dubai is infrastructure. Areas which have roads, shops, schools and hospitals demand a higher premium, but offer the most convenience.

When money is a more of a factor, you can still save a few dollars in rent or real estate investment by looking at modest, more affordable apartments situated in less luxurious, but still pleasant locations, which offer the opportunity for strong capital growth as infrastructure comes online. There are many apartments with child-friendly and secure neighborhoods with access to swimming pools and restaurants.

Dubai, with stunning skyscrapers and designer apartments, offers a luxury standard of living. However, there are still affordable and homely options perfect for families and single people. All you have to do is find a property that’s ideal for your budget and your lifestyle. Do a lot of research. Work with the most trusted and established developers which have a proven track record in the market – especially if you are considering an off-plan purchase. Request all information on the project: Escrow account details, copies of contracts with master developers and RERA-approved licenses – every trusted developer has to be able to provide these.

Above all, don’t let your heart rule your head; don’t overstretch your budget, but find somewhere that will meet the requirements of you and your family. Dubai is one of the safest places on earth to live, with a wonderful melting pot of communities. It is a city where opportunity is abound.

Where are your areas of choice in Dubai right now? Tell us your story of your move to Dubai. We would love to hear from you in the comments section below, or joining us on Twitter, @dxbpropinvest.

The Dubai Property Market Post-Mortgage Cap – A Top Five First Time Buyer’s Guide

With the recent introduction of a mortgage cap of 50 percent loan-to-value rate for expatriates in the UAE, many prospective clients have to re-evaluate ways to get into the Dubai property market.

The new regulations will impact those that require a mortgage to cover the repayments on the outstanding balance. The most recent statistics from the Land Department show mortgages account for 66 percent of total registered transactions in Dubai in Q1 2011. Foreigners are also substantial owners and buyers, purchasing real estate worth almost AED 30 million in H1 2012.

So, you are keen to invest in Dubai, but you no longer have the initial down payment required on the place you had lined up. What to do? Well, it may well be a blessing in disguise.

Dubai’s property market is currently increasing at a good rate. Now is the time to invest in the market, to capitalize on the growth to come. Here are a few things to consider:

1.    New Locations

If you are not able to find the 50 percent down payment on that stunning two-bed overlooking Burj Khalifa, take a look at the two-bed in IMPZ, Jumeirah Village or even Dubai World Central.

These locations have many stunning properties under development, but are as much as 50 percent less than Dubai Marina or the Burj Area. Okay, the infrastructure is going to take a couple of years to come online, but you will be close to all major roads and have a stunning property with enviable facilities, all for a fraction of the cost of the current prime areas.

2.    Take the emotion out

By looking at property in the development areas of the city, you are taking the emotion out of the investment and making a considered choice based on future capital growth. By being a ‘trend-setter’ and getting into these areas early, you will have much more room to grow the capital growth, indeed in the medium to long-term a new property such as Lago Vista or the Crescent in IPMZ, will certainly increase in value by higher percentages than the more established areas.

3.    Control your level of investment

The mortgage cap has been introduced to control the level of overseas investment in the Dubai property market and to try to restrain the boom and bust mentality of the past. It is a sensible approach to retain control of the markets and will help to ensure you are only investing the money you can afford. While all predictions suggest the Dubai real estate industry is on the consistent path of growth, there only needs to be another short-term dip and you could find yourself in financial difficulties. Accept the mortgage cap and use it to your advantage by looking at those properties in new development areas.

4.    Buy to live

This blog encourages a buy to live mentality, or at least a medium to long-term strategy for your Dubai investments. If you are considering a purchase in Dubai, think about what it is for. If this is for investment and to give you a home then we suggest looking also at the Hotel apartments springing up around the Burj Area. These offer not only a solid foundation for capital growth but the management companies will also take responsibility of renting out your apartment while you are away for any period of time.

5.    Do your research

As you set into the Dubai property market you will soon note that there is quite a bit of paperwork to get through. While this can be timely and frustrating, take it as a huge positive. This is a signal of the strength of the regulation now supporting the market and has been introduced to protect the buyer. Always ensure you ask the developer to provide you their licenses, including agreements with main contractors and also funding assurances through Escrow. By law, every developer has to provide you this documentation.

How has the new mortgage cap affected you? What impact do you think it will have on the market? We would love to hear from you in the comments section below, or joining us on Twitter, @dxbpropinvest.

Dubai Metro is driving property prices in Dubai. Here is passes DAMAC Properties' 'The Waves' in Dubai Marina

Transport Networks Driving Dubai Property Market

Improvements to the transport network in and around Dubai have had a dramatic impact on pricing, according to the Roads and Transport Authorities.

Property close to the Dubai Metro, which opened on 09/09/09, is already seeing a strong increase with prices appreciating anywhere from 7 – 34% a report concluded. Up to 300,000 people a day are now using the metro, making it one of the most used forms of public transport in the country.

It may seem obvious that the metro will have helped to increase prices, but many ‘experts’ were sceptical of the impact of the metro before, and even shortly after, it opened. It was thought that they would be seen as an eyesore, increase traffic congestion around the stations and no one would use it due to the obsession with big cars and cheap taxis.

However, people have been using the metro in their millions to get across Dubai and real estate has seen a good boost as well.

It is a further sign that infrastructure development has a dramatic impact on pricing and improvements to standard of living; something the top developers have been pushing for quite a while.

There is a currently a two-tier structure to Dubai’s real estate market, with the main areas along the coast, and adjacent to Sheikh Zayed Road and the metro demanding the highest prices, with the developments slightly further into the mainland offering great value as infrastructure is still in development.

The metro service in Dubai Marina looks set to come on-line in the New Year, with talk of the rail network linking Dubai and Abu Dhabi also set to get under-way at full steam shortly, the UAE’s transit network is set to be one of the most advanced in the Middle East.

Where as in 2008/9 and before, there was no need to even think about public transport in Dubai when considering a place to call home, it is now becoming a more important factor for all of the Dubai property market – not only for increasing value in the property but also for easier access around the Emirate.

How often do you use the Dubai metro? Have you seen an increase in your property since its completion? Have the prices risen because of the new network? We would love to hear from you in the comments section below, or joining us on Twitter, @dxbpropinvest.

Top Five Reasons for Dubai Property Market Resurgence

Top Five reasons for the Dubai Property Market recovery

As the Dubai Property Market continues to go from strength to strength, we take a look at the top five reasons why Real Estate in the UAE is seeing a powerful resurgence.

Following the correction in prices back in 2008, the market has slowly improved with 2012 seeing the most impressive growth – around 10-12% in some of the more desirable areas according to recent reports.

There remains a great deal of growth still to come as infrastructure is completed and the influx of foreign investment and foreign workers drives the market.

1.    Increased Liquidity

The Dubai economy remains on a strong recovery path with Gross Domestic Product projected to grow by 4.5% in 2012. This performance is being driven by the strong growth of key sectors such as tourism, commerce, retail, hospitality and logistics.

Banks are now providing funding again – not just for investors in the form of mortgages as low as 3.99% – but also to contractors and developers.

As developers receive funding as well as deposits and further payments on projects they will be able to continue building at pace. Liquidity is the key driver of the Dubai Property market and the banks need to continue to make funding available at all levels to ensure that the current recovery remains on track, at a steady pace.

2.    Comprehensive infrastructure investment

The Dubai Government is again investing heavily in an infrastructure programme, with Dubai World Central spending US$ 4.6 billion on infrastructure alone and terminal two of Jebel Ali Port passed halfway and set for completion next year.

As road networks, schools, hospitals and shopping malls also complete in the new areas of Dubai, investment in the real estate projects will continue to come in. There are many good prices to be achieved in the less developed areas of Dubai which are certain to grow in the coming years as the infrastructure network is finished.

3.    New Job Creation

Nearly one million new jobs are expected to be created before the end of 2020 according to the Dubai Government. As Dubai continues to grow and generate new opportunities, the demand for quality housing will remain. Jones Lang La Salle predicts that around 50,000 additional residential units are expected to be delivered by 2014.

With Europe and America still feeling the effects of a global recession, many ex-pats are looking to Dubai as a place to extend their career opportunities.

According to Hasnain Qazi, Middle East Business Manager at Huxley Associates, “Dubai has evolved into a lifestyle destination of choice for people all over the world looking for a safe, secure, vibrant, cosmopolitan city to live in, providing tax free income and a high standard of living. This is quite a contrast to many other countries in the world where economic and social conditions are not as rosy.”

 4.    Transparency and regulation

The Real Estate Regulatory Agency (RERA) is launching a new service fees index in this month which aims at regulating service fees, reducing disputes about service charges and increasing transparency in the market.

Following the release of the draft investor protection law in Q2, the Dubai Land Department has released a draft Code of Corporate Governance for Developers. The Code defines the responsibilities of developers and requires them to disclose to investors complete information about their properties, including alternatives in case of potential delays. The Code’s ultimate goal is ensuring more transparency and better regulation of the real estate market.

Further regulations ensure that all lease contracts are registered through a government database and all transactions with the Land Department go through a centralised listing site for available property, all of which prompted DAMAC Properties to recently call Dubai’s property market as one of the most regulated in the world.

“DAMAC Properties welcomes recent moves by the Dubai government to tighten regulation in the property market which we believe will sort out the wheat from the chaff,” said Niall McLoughlin, Senior Vice President, DAMAC Properties. “As the market in Dubai recovers strongly, it is important to have clear legislation which will instill confidence in overseas investors in particular.”

5.    Confidence

Investors believe in the Dubai Property market again. Government, banks and developers have worked hard over the past few years to bring back the belief in the growth potential of the market. Cityscape Global this year was a case in point with companies talking confidently about the prospects for the future and bringing back projects which had previously been shelved.

All markets, both financial and real estate are driven by consumer confidence and a return to the belief that Dubai is a thriving international hub will see clients returning in big numbers.

What do you think of our top five list? What have we missed? We would love to hear your thoughts on this and any other news on Dubai Property Invest. And don’t forget to also join us on Twitter @dxbpropinvest

Is there a two-tier Dubai Property Market?

Prime locations throughout Dubai, including Downtown Dubai, Palm Jumeirah and Dubai Marina are driving the rental markets with growth around five percent in Q3 alone, says CB Richard Ellis.

The latest report from the global real estate firm shows that demand in key areas remains strong, but that there is still good value in other locations throughout the Emirate.

This is a further proof point that Dubai is seeing a two-tier property market with areas which have completed infrastructure and facilities seeing strong growth and areas still under development experiencing high vacancy rates.
The report stated that rents were now “fixed on an upward path in the majority of sub-markets”.

Data for the year to date also continues to show a sharp incline in activity with the value of all residential transactions at AED 10.3 billion, compared to just AED 6.9 billion for the same period in 2011.

You only need to take a drive around the city to see cranes moving again, traffic delays and a generally more confident air. Recruitment is currently strong, we are entering the peak tourism period and new off-plan developments are reporting strong uptake in early purchases.

Indeed, the growth in the market has generated stories of the return of the speculator. While most developers are trying to play down the return to a boom and bust real estate economy and focus more on ‘steady and consistent growth’, there are certainly international investors coming back into the market in a big way, as they see the turning point in the market.

The increased liquidity in the market in general is going to allow developers and government contractors to move quickly in areas still under development and this is where we see the greatest opportunity to the investor.

In areas such as Jumeirah Lakes Towers and Arabian Ranches where roads and shops are currently under construction, prices remain highly competitive. An investment now will create the greatest opportunity for capital growth as projects complete and an increase in population fills the vacant apartments.

It is good to be talking positively about the Dubai property market again and while we have to keep a check on over-talking the market into an unrealistic position, there are clearly signs of revival.

While traditional powerhouses in Europe, America, and even China to some extent, struggles to break free from global austerity measures brought in to deal with the downturn, Dubai is much more nimble  and able to recover much quicker. International investors seem to recognize that and are moving fast to place their money here.

Are you getting back into the market, or is it too much too soon? We would love to hear your thoughts on this and any other news on Dubai Property Invest. And don’t forget to also join us on Twitter @dxbpropinvest

Dubai Property Market on the move

As you take a drive around Dubai, as I did this weekend, it is very noticeable that projects are again on the move. It reminded me of 2008 when a new tower seemed to appear almost overnight.

In Dubai Marina the new metro service is moving at a good pace with the stations now visible, while the Jumeirah Beach Residence beach front has been closed off in preparation of the new hotel and Mall to be built.

Driving along Sheikh Zayed Road there was further evidence of momentum in the Dubai property market with low rise office and retail space appearing and a trip to Dubai Mall highlighted the building work there with the walkway from the metro nearly complete as well as many of the towers in the Business Bay area very close to completion.

As the Dubai property market moves again, a study suggests that interest is returning to the projects which were on hold or previously cancelled. Real estate firm Cluttons reported an increase in demand for “feasibility activity and due diligence being undertaken by developers and investors in projects currently on hold, with the numbers under close scrutiny once more,” it said in a statement.

Jonathan Fothergill, director of UAE valuations at Cluttons told Arabian Business: “Clients are requesting everything from considering the feasibility of the refurbishment of a residential apartment building in Deira to looking at the feasibility of substantially expanding or refurbishing an existing shopping mall.”

Confidence breeds confidence and the physical signs that developers are again moving at pace in the Dubai property market will not only lift the mood in real estate, but in companies across Dubai in general.

Mike Sefton, property consultant at Knight Knox International, stated: “People are starting to have more confidence in the stability of the market.”

The real estate market is so closely tied to consumer sentiment in Dubai that the physical signs of movement will have much more impact that the words we have heard in the past few months. Now we can see it is back and that means we must move quick to benefit from the current prices.

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.