Weekly Dubai real estate news digest. Issue 63

Positive Market Tidings
Welcome to the sixty-third issue of Market Insight, your weekly guide to what's happening in the Dubai real estate market.
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MARKET INSIGHT. Weekly guide to Dubai's property scene
Issue 63 |  September 14, 2014

Positive Market Tidings

Dubai’s real estate market is flourishing, with a number development projects under way, setting the stage for positive investment and stable growth.

 Dubai is working vigorously to attract visitors to the city to reach the 20 million visitor mark by 2020. One of the mega projects launched by Meraas Holdings is three theme parks, which will be located near the Dubai Expo site. A Bollywood, a Hollywood and a Lego land inspired park will be the new highpoint of Dubai’s entertainment scene and will cater to adults and children alike.

At the same time, a number of housing projects are under way that promise to meet the residential demand of the city and provide a unique living experience by 2016. The project locations clearly demonstrate that Dubai Marina and Downtown Dubai followed by Jumeirah Village are the most popular localities for investment. Emaar Properties is developing BLVD Heights, a two tower complex in Downtown Dubai, which will offer affordable apartments. Similarly, Park Investments is building 93 four-bedroom villas in Jumeriah Village Circle.

While, BLVD Heights and Jumeriah Village Circle offers affordable living, Marina 101 in Dubai Marina is selling luxury apartments and penthouses on the top levels. Tebyan property developers is also offering a tower crystal themed residential complex in partnership with Swarovski.

Developers in order draw buyers to invest in the different projects have introduced a variety of schemes, where the focus has been shifted from cash ready investors to end-user buyers. They are offering stretched payments, which has been a smart move to attract serious buyers who are operating on a constrained budgets. Emaar Properties is offering an Emaar Preferred Access programme, while Park Investments is recommending a two part payment scheme and interest free installments.
On the other hand, the government through its Real Estate Regulatory Agency has introduced new regulations that safeguard the interests of all parties involved in the real estate business and encourage a positive and stable market environment. Brokerage activities are now being monitored and rampant speculation is being curbed to allow steady growth of the market.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. It is evident that the Dubai real estate market and the government is now gearing itself for the Expo 2020 and the visitor and influx that is expected in the coming years. Developers are introducing mega projects in popular localities but proceeding with caution and introducing long-term payment schedules that not only guarantee serious investors but also motivate developers to complete the projects in a timely manner. Keeping in light the development trends and Colliers International report, investing in Dubai’s real estate market is a better investment in the long term than stocks and has seen a growth of 20% a year. Hence, Dubai market promises good returns and a positive growing environment.
Pashma Manglani

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Dubai real estate better investment than stocks in the long term

According to a report published by Colliers International, investment in Dubai’s real estate market has shown to present twofold returns over the long term as compared to stocks. Whereas, on a quarterly basis the Dubai Financial Market (DFM) has out-performed the property market. This has been reported by Emirates 24/7.

DFM has achieved an 18% percent increase in its value in the second quarter of 2014. In contrast Colliers house price index (HPI), which was introduced in 2007 has reflected a 3% increase in performance. 

On the other hand a study of HPI since its establishment, distinctly illustrates that the property market has outdone the DFM. Property investment in the first quarter of 2007 till 2014 has produced approximately a 70% increase, while DFM has only managed at 30% return.
Colliers analysis also reveals that the scale of growth of property prices has slackened in the second quarter of 2014 and there has only been a 3% increase in opposed to a 5% increase witnessed at the last quarter of 2013 and the beginning of 2014.

Ian Albert, Regional Director at Colliers International said the growth of the market has now adopted a consistent and stable position and is expected to have positive growth in the coming year. 


Read more on Emirates 24/7

Dubai developers to offer stretched  payments to draw buyers

Dubai’s property sales market is witnessing a change as developers are now focusing on potential end-user buyers as opposed to cash ready investors and altering payment schedules, reported by Gulf News.
With new real estate ventures launching in Dubai, developers are allowing buyers to make small payment installments rather than invest huge sums of cash during the completion of the projects. They are enforcing schemes where buyers are required to make final payments after the property handover. This has majorly impacted buying choices.
This has been a positive step for potential buyers, particularly those who have a constricted budget, as they get to avail a more flexible payment schedule.
Moreover, post- handover payments compel developers to meet construction timelines and prevents them from running into resource draining overruns.

Industry experts claim that reworking payment schedules is one of the most effective ways to get committed buyers to purchase real state. 



Read more on Gulf News

Property brokers being monitored to avoid market speculation

The Real Estate Regulatory Agency (Rera) revealed that Dubai is actively working on monitoring brokerage activities in the city, to prevent market conjecture. The Agency chief announced that real estate brokerage firms who engage in any speculation or unsolicited calls with brokers are given a warning first and if they continue to breach the rules, they are fined up to AED 50,000, reported by Emirates 24/7.
Marwan bin Ghalita, Chief Executive Officer at Rera, the regulatory division at Dubai Land Department (DLD) stated that the agency’s aim to thwart any adverse effects on the property market and promote stable and consistent growth. For this purpose the agency has put together an effective system that consists of guidance policies, laws and regulations to assist brokers in their work.  The overall aim is to safeguard the right of all parties.
Organizers of Cityscape Global with the support of DLD will be holding the region’s first Real Estate Brokers Summit, with the goal of informing all parties involved in the real estate business of the current procedures, policies and laws prevalent in the industry.


Read more on Emirates 247

Top floors at Marina 101 go on sale

Sheffield Holdings, announced the sale of the top 20 floors of it Marina 101 tower, which comprises of 60 three bedroom apartments and luxury penthouses. The sale is to take place at Cityscape Global, according to The National.
Marina 101 towers, with a height of 426 metres is to become the second tallest tower in Dubai after Burj Khalifa, after its completion at the end of the year.  

The tower’s first 33 levels will have 300 room hotels and the next 45 levels will comprise of 420 one and two-bedroom hotel apartments. Sheffield Holdings states that nearly 85% of the tower is complete and the apartment hand overs will take place three to four after the finish date, once cleared from Dubai Land Department.

The apartments at Marina 101 are priced around AED 5.8 million though the price is higher at the top levels. Whereas, 15,000 square feet penthouses on the 100 level are priced around AED 30 million.  

Patrick El Khoury, the chief operating officer for Sheffield Holdings stated that the property is one of its kind and therefore the quoted price. 

Read more on The National

Three new theme parks to open in Jebel Ali by 2016

Meraas Holding, Sheikh Mohammed Bin Rashid’s private property company publicized its new project of starting three theme parks in Jebel Ali by 2016, which will attract  more than five million visitors each year  as reported by The National.

The parks will be built around the Bollywood movies, Hollywood movies and the Danish toy Lego.

The work on these theme park began in February 2014, and these parks are expected to become a part of the AED 10 billion complex of five linked parks.  These parks will be located near the Dubai 2020 Expo site and the city’s new Al Maktom airport and are aimed assisting the government in increasing annual tourism to 20 million people by 2020.  

In order to support the construction of the three theme parks, Meraas has set up a subsidiary Dubai Parks and Resorts, which will include luxurious square of shops, restaurants, entertainments and a family hotel known as ‘Riverpark’ and Lapita.  The project is being headed by Red Al Nuaimi, the former chief leisure and entertainment officer in the capacity of chief executive. 


Read more on The National

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