Showing posts with label Dubai marina. Show all posts

Sunday, June 15, 2014

Dubai planning new fee, restrictions on off-plan property sales

Move to further discourage speculative demand

Parag Deulgaonkar

Published Monday, June 16, 2014

Dubai is considering introducing new fees and restrictions to stop flipping of off-plan properties, the International Monetary Fund (IMF) has said.

“Imposing additional fees and restrictions on reselling off-plan properties, as currently under consideration, would further discourage speculative demand,” the IMF said in a new report.

“The increase in Dubai’s real estate registration fee from 2 to 4 per cent last October, along with regulatory measures to assure orderly market conditions for new real estate development, was a welcome step,” it added.

International experience shows that countries faced with real estate booms often repeatedly raised real estate fees and differentiated them by criteria such as the buyer’s residency, use of the property for occupancy or investment, or the time elapsed before reselling, with rates reaching up to around 30 per cent for selected types of properties resold within a year (Singapore).

Although it is not known on what measures the Dubai Land Department (DLD) is planning to introduce, market participant say the introduction of a slab-wise registration fee is likely.

DLD, however, did not respond to queries from Emirates 24|7.

“The plan to introduce new measures/fees on a sliding scale is a good move. This is what the market needs as we see speculative activity,” Craig Plumb, Head of Research, JLL Mena, told Emirates 24|7.

“Property prices are going up, driven mostly by speculators in off-plan projects.

“We need more regulations to discourage speculators,” he added.

Although Parvees Gafur, Chief Executive Officer, PropSquare Real Estate, said the new fee would be good for the market in long term, he believed that the market was no longer driven by speculators but by the end-users.

UAE developers have imposed self-restrictions with major developers such as Emaar Properties, Aldar Properties and Nakheel not allowing an investor to sell a property unless they have paid 40 to 50 per cent of the property value.

(Read: Major UAE developers team up against flippers)

Earlier this month, the UAE Central Bank said that low residential rental yields in Dubai and Abu Dhabi possibly indicate growing imbalances and overheating in the real estate sector.

“Current average rental yields in Dubai and Abu Dhabi are approximately 70 and 130 basis points below historical averages, which could indicate growing imbalances - overheating real estate market,” the Central Bank said in its financial stability report 2013.

Global Property Guide, a UK-based research house, said on Sunday that Dubai has topped the list of house price survey for the fifth consecutive quarter with house prices rising 31.57 per cent during the year to Q1 2014 and 9.58 per cent in the first quarter alone.

(Read: Dubai property prices up 32% in 12 months)

if you have interest in Dubai real estate contact me on edith@flashproperties.com or +971557162933.

Saturday, May 10, 2014

What's Happening In The Dubai Property Market.

Many clients come to us as brokers and ask where is the best location to buy now and what areas will see

growth in the future?

Answering this question all depends on what you want from your investment, Will you be living in the unit long

term? Are you looking for rental returns or solely capital appreciation?

Your answer will depict the area that your real estate professional will advise you on.

Let’s take a look at the 3 different options…

If you’re looking at moving in now, you should be looking for established areas, areas with no/little

construction and full facilities like schools and shops in the vicinity. For villas, my advice would be the

Emirates Living area. Developments like Jumeirah Islands, Meadows and Arabian Ranches.

These 3 areas give a wide range of value starting from 3 million ranging up to 20 million.

All facilities are already in place and residents have been living there happily for years already.

Areas like these which are fully established will always be very popular with

buyers as the areas hold their value well, even in a depression, it’s these established areas that hold

their value the best and recover quickest.

If you’re looking for something a little newer but still close to these established developments, areas like

Jumeirah Park which are already inhabited and having the final touches added can offer a slightly more

modern unit but still in good locations and access to local facilities. For apartments we’d always suggest the

Marina and Downtown Dubai and if possible, specifically Emaar, Select or Trident units.

These 3 developers have multiple towers in the mentioned areas and again are very popular with

additional advantages in great locations, property standards are high quality and they will always have

interest from a resale perspective.

If your solely looking for rental returns and giving yourself a good yield, then apartments is the best option.

A good yield in the current market is around 7% net. It’s worth noting that many agents will talk about gross

yields, but this does not accurately depict your investment. To accurately calculate your investment you need to

know the rentals and all cost Service charge, chiller etc. One unit may have a higher gross yield than another

butbecause the service charges are much lower in the other it may give the better net return. Areas in Dubai

consistently giving good gross and net returns are The Greens and Views and Motor City. Some newer areas

giving great returns are Sports City and RemRaam. In general, Studios and 1 beds tend to rent faster and

provide the best returns. They also sell much quicker when looking at resale in the future.

If you’re looking for Capital Appreciation then the best area to buy is Off Plan property. Off Plan units are

making a strong comeback now. Areas like Arabian Ranches 2, Mira, Sports City and down near

Dubai World Central Airport are seeing huge growth. These off plan units offer buyers to purchase villas

usually ready 2-3 years after launch at prices per sq ft well below what they currently trade for.

A good example is a 4 bed villa in Mira for just 2.3 million, when you compare this to something

similar in an established development like the Springs, these would cost 3.5 – 4 million. Another positive

factor for Off Plan purchases is the ability to be able to pay in installments over two years and spread the

payments out in a similar way you would to a mortgage. Clients have reported making between 30-100%

returns through off plan investments.

One key note to remember when purchasing any property in Dubai that many people forget is to also look at

your exit strategy. We always find out if clients have an exit strategy. How long do they want their money tied

up? Will their strategy change in a few years? For a good property specialist to offer the best advice to you,

they will need to know what you as a client want now and in the future and not just advise you when to buy,

but also when to sell and then where and when to reinvest after.

For more on investment in Dubai please Contact me on edithmakena@gmail.com

Thursday, March 20, 2014

DominaTower previously (Dubai Star) By Ernesto Preatoni JLT Hot Sale Units Available NOW!!

MILANO FINANZA – PREATONI, ENTREPRENEUR, HAS

PURCHASED A 48 FLOOR TOWER VALUED AT 100

MILLION EURO

Always on the hunt for emerging markets, Ernesto Preatoni bet on Dubai.

For now buying a tower, the Dubai star which is a 48 floor building valued at 100 million euro, is just the start as there are already other operations underway. The emirate’s real estate market was amongst the first to feel the pinch in 2009. The country has stopped a step back from the brink in 2010 thanks to the rescue by Abu Dhabi. After the bursting of the speculative bubble, which has cut prices 50%, the real estate market has presented signs of depression for a long time.

“Today, however, the crisis seems to be behind us. On the contrary, in 2012, the brick grows”says Preatoni.

“Foreigners have begun to buy and housing prices regained some lost ground which amounted to 15 billion in total sales last year”. Hence the decision to invest on the part of the Italian entrepreneur. The Dubai star, dubbed Domina Towers is located in the Jumeirah Lake Towers, a large district built along the edges of artificial lakes in the heart of the city. Soon he went to the rescue of a bankrupt company. The construction of the tower began in 2006 by the German ACI, but because of the market collapse, the complete project had failed. The skyscraper was then purchased by Preatoni Real Estate Developments, which will focus on the business development of the UAE. Once completed, the Domina Tower will have 48 floors with 600 units, divided between commercial storefronts, offices and apartments. The work will be completed by the Preatoni Real Estate Developments in April 2015. Considering a current value in the area of € 2000 per squaremeter, the total value of the Domina Tower will be about 100million. Currently, 80% of the units are sold on the card and paid in varying degrees. For those who want to get out of their investment, then it can be liquidated. Preatoni estimated that only 20% of customers will not confirm investment and therefore leaving only about a hundred units. But as mentioned,Preatoni arrived in Dubai to stay and already has plans to build a sales network site which will be managed by his son Eugenio Preatoni

Pay only 50% now and the rest ON A PAYMENT PLAN over the construction progress on an Escrow Account. The building is 75% done already and completion is targeted to be after 18 months, we have 1 bedrooms and 2 bedrooms. The units have the Oqood ready. edithmakena@gmail.com or +971557162933.

MR. PREATONI AT THE DOMINA SITE

AMAZING JLT VIEWS

LAKE VIEWS AND JUST NEXT TO THE METRO

AMAZING EMIRATES LIVING VIEWS

DOMINA TOWER PROGRESS

INTERIOR FINISHING ALREADY UNDERWAY

AMAZING VIEWS

Tuesday, January 21, 2014

Dont Miss The Next Move a property showcase in Madinat Jumeirah Feb 20th - 24th, about 22 developers have signed up including Aldar, Damac, Pacific Ventures and Flash Properties.

First comes Dubai’s Cityscape, now the spin-off; the NEXT MOVE

With property prices and rents across the UAE on the rise, many residents have already opted to switch from renting to buying their home. Have you decided on your Next Move yet?

Next Move live is the only dedicated consumer property show in the UAE, offering a one-stop-shop where you can get all the information you need to buy your next villa or apartment. The show brings together the leading property developers, agents and banks from the UAE and overseas all under one roof, offering you a showcase of thousands of properties to choose from.

Make your Next Move the Right Move. Visit Next Move live.

Buy or Rent?
With rental prices increasing sharply and with mortgage rates remaining low, buying property now can be cheaper than renting.
For example, the average price of a one-bed apartment in Dubai Marina is AED1.4m ($381,000), according to the Arabian Business Better Homes Live Property Index. "Taking into account a 20 percent deposit, which is the level most UAE banks expect, the average mortgage rate of 3.99 percent plus fees and a 25-year loan, annual mortgage repayments for an average one-bed apartment in Dubai Marina equal AED 70,941, according to the HSBC online mortgage calculator. That is a saving of more than AED14,000 compared to the average annual rent of AED85,000".

First there was Cityscape, the Dubai property show that during the boom became a byword for crowds of investors pushing and shoving to slap down deposit cheques for off-plan properties they expected to soar in value overnight
Now, as the Dubai property market once again shows signs of dangerously high price growth, the organisers behind Cityscape are setting up a new spin-off consumer real estate show aimed at specifically targeting owner occupiers and small investors.
Yesterday Cityscape Group announced that it is to stage its debut Next Move Live event at Dubai’s Madinat Jumeirah from February 20 to 22. It is aimed at Dubai residents looking to buy and rent in the city.
According to Cityscape, about 22 developers have signed up to the new event including Aldar, Damac, Pacific Ventures and Flash Properties.

The organisers said they hoped the event would be a one-stop shop for consumers, who will be able to rent or buy homes at the venue.
They said it would differ from Cityscape, which is a business to business trade show aimed at large-scale investors and property professionals, although it also attracts developers showcasing luxury apartments.
“As the only dedicated consumer event in the UAE, visitors will be able to access information directly from property developers, agents and banks, and can even make a decision on the show floor to purchase or rent their next home,” said Wouter Molman, the director of Cityscape Group.
“UAE residents and property developers alike have been calling out for this kind of event,” he added.
The news comes just a few weeks after the Dubai Land Department director general said that he expected house prices in the capital to rise by 35 to 40 per cent this year after climbing 30 per cent last year.
He warned that the city is planning new rules to control speculation on properties that are sold off-plan before they are built to prevent Dubai experiencing another property boom and bust.
“This is definitely a sign of further growth in the housing market,” said Craig Plumb, the head of research for Jones Lang LaSalle’s Dubai office. “We applaud anything that encourages more end users rather than speculators to enter the market. However, we believe that the increased activity in the market at the moment is driving prices to rise at rates which are unsustainable, so I suppose it’s a case of buyer beware.”
Cityscape, which is owned by Informa Exhibitions, was inaugurated in Dubai in 2002 and has already spawned a host of similar events in Abu Dhabi, Egypt, Riyadh, Jeddah, Qatar, Latin America and Asia. The shows are aimed at financial institutions, developers, high net worth individuals, property advisers, architects, designers, construction companies and government authorities.
Last year unruly crowds caused upset at an Emaar sales event close to the Cityscape main exhibition hall.
edithmakena@gmail.com.

Thursday, December 26, 2013

Revealed: Dubai top 20 locations to rent or buy a property in 2013

Dubai Marina continues to be the outright favourite location in Dubai for buyers and tenants, but Dubai Sports City is fast growing in popularity, according to the latest statistics.

UAE property portal Propertyfinder.ae released its latest quarterly report on the most popular locations for users to search to buy or rent, with Dubai Marina once again the outright favourite.

A review of nearly two million visitors found 18.67 percent were searching for Dubai Marina units to buy, while 18.41 percent of those looking to rent were searching here too.

if you need more information remember My Tower Dubai Marina write to me on edithmakena@gmail.com. http://dubaihomesolutions.blogspot.ae/2013/12/amazing-views-from-my-tower-in-dubai.html.