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.