Weekly Dubai real estate news digest. Issue 72

16.11.2014
Transformation underway
Welcome to the seventy-second 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 72 |  November 16, 2014

Transformation underway

The Dubai Expo 2020 was the right fit for UAE’s ambitious plans that embrace growth in trade, tourism and real estate, reflecting a clear business strategy that aims to take the country forward. 

Panelists at a session on “Expo 2020 — Economic Impact Pre and Post 2020” discussed how the announcements of new theme parks, hospitality projects and infrastructure upgrade were indicative of a planned approach by the authorities - the benefits of which would continue long after the Expo ended.


Dubai is not only eyeing long-term developments in the city, but also looking at transforming the market, making it one that is more conducive to investment. In fact, a new law - the Real Estate Investor Protection Law - is currently before courts and is waiting to be approved, according to an official from the Dubai Land Department (DLD). Under the law, investors would receive greater protection in cases where they find their money has been placed with an unscrupulous investor or one that has failed to deliver on its promises, attracting more international business to the Emirates. 

The emirate is also focusing on achieving greater stability, learning from previous mistakes made. Supply additions are expected to outpace demand over the next few years and may lead to increased price stability, Standard & Poor's Ratings Services said in a recent report. The agency noted that while market sentiment may drive prices in the near term, the amount of new supply will be the key to the market developments going forward. 

Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. This is clearly a turning point for Dubai's real estate market with new laws in development and the city being transformed to better cater to end-users. It is clear that the city has not only changed itself, but has taken the lead in the region with GCC residential property markets showing improved performance over the past few years. Attracting international business to the region, Dubai is set to create real change for not just the UAE, but the entire GCC. 

Sincerely,

Pashma Manglani

Editor


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'Dubai would have recovered sooner with insolvency law'

Will Dubai think of introducing a safety net in the form of a proper insolvency regime for failing business owners? This was one of the areas that the 11th Arabian Business Forum looked at, reported Arabian Business. 

Gary Watts, partner and regional head of corporate commercial at Al Tamimi & Co, cited the example of some of the buildings in, for example, Business Bay, where many projects halted as a result of the downturn, adding: "The property section would have recovered sooner, had they had a proper insolvency law."

The rules and procedures governing insolvency for both individuals and commercial entities in the UAE are currently set out in Book 5 of the Commercial Transaction Law, Federal Law No. 18 of 1993. However, it has proved extremely difficult to enforce and the courts have been reluctant to apply it.

 

Read more on Arabian Business

Tram to benefit residents in Marina, JBR

After years of anticipation, the Dubai Tram started carrying passengers on Wednesday.

Residents and tourists can use the trams to get around Dubai Marina, Jumeirah Beach Residence and along Al Sufouh Road. The first phase of the tram project has 11 stations and 11 seven-car trams that will travel the line’s 10.6 kilometres in 42 minutes, at an average of 15kph and top speed of 50kph.

“The tram aims to improve the mobility within areas of tourist and economic importance,” said Mattar Al Tayer, executive director of the RTA. “It provides a smooth, handy and highly efficient transit experience within the city of Dubai."
The tram is also expected to add value to property around it for residents in the Marina and JBR region. 

 

Read more on The National

Costliest deal in Q3: Burj Khalifa

Burj Khalifa is not only the tallest tower in the city, but it also registered the biggest property deal in the third quarter of the year.

An apartment in Burj Khalifa sold for AED28 million, topping the list of 10 costliest apartment deals for the third quarter, data provided by Reidin.com to Emirates24|7 reveals.

The second costliest transaction took place in Le Reve Tower, Dubai Marina, with an apartment selling for AED25m.

A unit in Marina Residences 4, Palm Jumeirah, which sold for AED14.30m, took the third place. The fourth and fifth positions were units in The Residences Podium Downtown Dubai and Anantara Residence (Resort & Spa), Palm Jumeirah, which sold for AED14m and AED12.65m, respectively.

 

Read more on Emirates 24/7

Business Bay, Tecom see hikes in office rent

Six of 13 key business districts have witnessed rent increases of double digits in the year to September 2014, according to research by Knight Frank.

The districts that saw annual increases were Business Bay (35%), Tecom C (31%), Dubai Festival City (26%), Emaar Square/Downtown (23%), Bur Dubai (13%) and Jumeirah Lakes Towers (10%).

However, rents in Dubai International Financial Centre, Dubai Media City, Dubai Internet City, Knowledge Village and Deira saw no change, the UK-based consultancy said.

Overall, prime rents rose by two per cent quarter-on-quarter and were up 23% compared to the corresponding period of 2013.

 

Read more on Emirates 24/7

Dubai leads Middle East rebound

Most stock markets in the Middle East gained on Monday, led by Dubai, where construction firm Arabtec Holding rose sharply after a key shareholder bought a stake in a major Egyptian property developer.

Khaleej Times reported that Dubai’s index jumped 2.8%, its biggest daily gain in three weeks, as Arabtec, which dominated trading volumes, surged 8.8%.

“It shows there is a strong commitment [by the UAE] to support the Egyptian economy, especially in the real estate sector,” said Sebastien Henin, head of asset management at The National Investor in Abu Dhabi. “We could imagine it might sooner or later benefit Arabtec, for example with a new project.”


Read more on Khaleej Times

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