Weekly Dubai real estate news digest. Issue 79

Exciting time for realty
Welcome to the seventy-ninth 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 79 |  January 4, 2014

Exciting time for realty

As we move into the new year, developers in the UAE appear to be fully-charged and ready to go with a series of new projects that will either enter the market in 2015 or at least begin the construction process.

Local developers are also reviving projects amid a surge in prices and new measures such as limiting mortgages and a doubling of transaction fees which have helped stabilize the market.

One of the most important developments that will set off in 2015 is the AED25-billion Mall of the World project - which is set to take 10 years to complete. Dubai has its ambitions set high with the shopping mall, hoping to later utilise micro-climate technology within the shopping destination so that visitors can experience snow or rain while in Dubai. 

Earlier in November, Danube Properties launched a revolutionary new project - Glitz by Danube. It has been a game-changer not because of its luxurious features, but rather the fact that it targets end-users. “We are targeting [the] mid-income segment. People who are on salaries that are between Dh25,000 to Dh40,000 a month,” said Rizwan Sajan, Danube’s founder and chairman. “When you are talking about a property that costs Dh1m you are talking about paying Dh10,000 per month.”

There is an apparent shift in the way developers approach the market today, with a greater awareness of the needs of end-users and the demand that exists in the market today. At the same time, there is a surge in projects with Expo 2020 coming up in the future. 

Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. There are a host of exciting new projects that will hit the Dubai realty scene in 2015, which promises to be, if nothing else, a year fuelled with development. The concern remains on whether there is sufficient demand from end-users for the ever-increasing supply and that's something that's yet to be seen as we move forward in the new year. 


Pashma Manglani


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Mega projects to watch out for

Dubai developers left no stone unturned as they announced multi-billion dirham master developments and real estate projects that will change the landscape of the emirate in the coming few years, Emirates 24/7 reported.

The biggest of the all was Dubai Holding’s announcement of AED25-billion Mall of the World, which is set to break ground early 2015. The mall will be completed in different phases that will take 10 years to complete.

In August, Damac Properties launched Akoya Oxygen, a golf-centred project in Dubailand. In September, Dubai Parks and Resorts, a subsidiary of Meraas Holding, announced it had started work on its three theme parks.

In September, Investment Corporation of Dubai, the investment arm of the Dubai government, and Kerzner International Holdings Limited, an international developer, unveiled AED5.14 billion Royal Atlantis Resort and Residences on Palm Jumeirah. In September, Meraas Holding launched La Mer, a mixed-use development in the vicinity of Pearl Jumeirah Island in Jumeirah. In November, Emaar Properties and Dubai Holding announced the launch of Dubai Creek Harbor at The Lagoons, a 6.5-million square metre urban district.


Read more on Emirates 24/7

Slower growth benefits office rentals

Dubai and Abu Dhabi did not make it to the Top 10 rankings of cities with the highest growth rates on rentals for prime office space during 2014. However, that's not necessarily a bad thing.

In fact, Abu Dhabi just about made it to the 50th spot in rankings. Growth in asking rates on office leases in Abu Dhabi were at 2.4%, according to CBRE estimates for the 12 months that ended September 2014. Even without a major upswing, Dubai’s Grade A offices are still among the most expensive with a square foot averaging $92.56 (AED340) and placing at 23rd.

The slower rental demand increases in Dubai and Abu Dhabi bodes well for the near-term prospects of both. What the market does not need right now is to go through sharp spikes and which would add to the cost of doing business in the cities, Zawya reported. 


Read more on Zawya

Dubai plans for artificial snow resort

Dubai has made it its mission to defy all expectations. Now, the emirate is planning for its very own snow resort, The Heart of Europe.

A series of six islands, each will have their own micro-climate boasting snow, rain and ice.  How? Using a fantastically complex network of pipes, huge snow cannons and rain dispensers the island can be covered in snow, rain and drizzle while cooling pipes will lower the surface temperature allowing the snow to settle.The system is recyclable as well thanks to a network of drains that'll collect the water and snow and then reintegrate it back into the process, creating a micro climate.

German property developer Kleindienst Group is behind the bold vision and says that it has already carried out successful trials of the technology which will form the foundation of the complex when construction begins in 2016.


Read more on Huffington Post

$2.7b of property projects in next 5 years 

Dubai Investments PJSC plans AED10 billion ($2.7 billion) of real-estate projects in the next five years as it seeks to benefit from resurgent property demand. 

Developments include Mirdiff Hills, an AED2.5 billion project in Dubai that will include 1,500 homes, a 230-room hotel, shops and 200,000 square-feet of office space, Chief Executive Officer Khalid Bin Kalban said in an interview.

The company’s Dubai Investment Real Estate Co. unit will start tendering for the development in the next two months, he said. Local developers are reviving projects amid a surge in prices and new measures such as limiting mortgages and a doubling of transaction fees which have helped stabilize the market.

Read more on Gulf Business

$81m Glitz launched

Dubai's Danube Properties has officially launched its AED300 million ($81.6 million) affordable luxury apartment project ‘Glitz by Danube.'

This is the second real estate project announced by the newly-launched property arm of Danube Group within six months. Danube Properties’ maiden project ‘Dreamz by Danube’, worth AED500 million was sold out on the first day of the public sale in June this year.

The latest project, which encompasses 300 apartment units in a mix of studio, one, two and three bedroom properties, will be constructed in Dubai Studio City close to the proposed Village Centre.

Read more on Arabian Business

Emaar announces big changes

Dubai-based developer Emaar Properties announced a major organisational shake-up aimed at powering growth with a focus on project management, delivery and customer service.

A number of new senior appointments have been made across the company, with a priority to manage and deliver projects, Emaar said in a statement.

Mohamed Alabbar, chairman, said the new structure draws on the Dubai Plan 2021 announced by Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai. Alabbar said that Emaar will continue to develop prime real estate assets in its home-market of Dubai and other high-growth international markets, as well as strengthen its competencies in shopping malls and retail, and hospitality and leisure. 

Read more on Arabian Business

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