dubai property market

Dubai Total Property Deals At $2.62bn in First Half 2010

October 10, 2010 By admin Leave a Comment

According to Dubai RERA data, Dubai real-estate transactions totaled AED9.63bn ($2.62bn) in the first six months in year 2010, which is about half the value for all of 2009.

Dubai’s Land Department recorded 1,188 sales in the first half compared with a 2009 total of 2,327, the government said in a bond prospectus published on the London Stock Exchange on Monday. The document didn’t provide figures for the first half of 2009.

The deepest global financial crisis since the 1930s led Dubai property prices to slump more than 50 percent from their peak in August 2008 as frozen credit markets force the country’s largest mortgage providers, Tamweel and Amlak Finance, to stop lending.

The United Arab Emirate’s real estate and property prices may drop another 20 percent as 41,000 new houses are put on the market by the end of this aggravate an existing glut, said Ahmed Badr, a Dubai-based analyst for Credit Suisse Group AG.

The value of property sales last year slumped 72 percent from 2008 to AED19.5bn. The number of transactions in 2009 dropped to 2,327 from 5,916 a year earlier.

Another Bloomberg report on Monday said that the updated bond prospectus also revealed that Dubai’s government had outstanding direct debt of AED105.47bn at July 31 this year.

The debt includes funds borrowed by the Dubai government to finance the expansion of Dubai International Airport, the first phase of the construction of Al Maktoum International Airport, other infrastructure projects in Dubai, borrowings by Investment Corp. of Dubai, and related party debt from the Abu Dhabi government and the Central Bank of the UAE for the Dubai Financial Support Fund and the restructuring of the Dubai World Group, according to the prospectus.

Dubai has no current plans to implement income or corporate taxes, the government said in the updated bond prospectus published on the London Stock Exchange on Monday, according to a Bloomberg report filed on the same day.

“The Dubai government has no plans currently to implement income or corporation taxes, although there has been speculation in relation to a federal government imposed value added tax regime for some time,” according to the statement.

Dubai Property

Filed Under: Dubai Property Tagged With: Al Maktoum, Dubai Government, Dubai International Airport, dubai property market, dubai real estate, Real Estate Transactions

Dubai Real Estate and Property Investment Market

June 13, 2010 By admin Leave a Comment

Making the real estate and property investment in Dubai can be the smart choice, particularly right after the passing of Law Number 7 that enables ‘foreign freehold ownership of property’ in a few selected Dubai areas.

Nevertheless, generally there still continues to exist of some adverse factors that could cut the demand of the area. Those factors including the ever rising rate of inflation as well as increasing of living cost.

Compare Dubai Property And Living Cost

A good instant of inconsistency in rates of inflation rates and increasing of living cost in Dubai is you can do a little checking on the cost of a child private education. When you make a comparison said the UK, the education fee will be about 46,000 Pound per year but you will have to pay for double that figure in Dubai which unexpectedly causes it to be much more expensive for you to make your living in Dubai than in UK!

If we are looking at positive side, we can said that inflation can actually be a good sign which indicate that the Dubai economy is in uptrend and is strong enough to handle price increases that might have an effect on the real estate and property market. This may create a misconception to many people as they will think that the real estate and property in Dubai can endure an additional growth in price.

The negative side for the inflation would be, by cutting down the value of the monthly disposable income that the Dubai residents receive, this is going to create an impact for those who need to pay for accommodation as well as deteriorating the attraction of tax free living in the region.

As of now, there are so many skepticism in term of view in the real estate and property in Dubai, and there is certainly more mist covering the Dubai real estate and property investment market.

Real Estate and Property Market in Dubai

Many people are start questioning whether the real estate and property market in Dubai in going to recover soon or will take another big dip in the near future? The bright side would be of the passing of Law Number 7 by Sheikh Mohammad Bin Rashid Al Maktoum that is expecting to create an increase profit for real estate and property market in Dubai.

Dubai continue to be an emirate that is tax free where there is undoubtedly an excess of job opportunities on the market ready for competent expat professionals.

Since there are a great number of job opportunities are readily available, thus salary packages and incentives most companies offer are generally breathtaking, which includes the benefits of stay in Dubai and rightfully stay away from paying any tax to the local government. This benefit has caused a lot of foreigners coming to Dubai to work. Due to ever increasing of population in Dubai, which means that demand for housing and property in Dubai is also very high.

In accordance with developers that based in Dubai claiming that there is an intense demand for completed Dubai property and this is the main factor that cause the rental rate to rise so rapidly. As compare to last time those expatriates can only rent the property when they came to work in Dubai, now they are qualify to buy and own a property. Most investors possess with completed investment properties were increasing rents to make more profit and end up the government need to go in for intervene.

What Dubai should do now would be to cultivate and keep a brisk resale property market, as those people who move to live in Dubai will need to have the opportunity to buy property, or otherwise have the chance for renting and purchasing a finished property, which if taking place properly will be able to get rid of the need to restrict the increment of rental rate and so can bring in more vibrancy to Dubai real estate and property market.

Being a direct response of the truth that a lot of buyers who purchased off plan Dubai properties are anticipated to consider residence in the property that they purchase upon completion, there’ll be significantly less demand for both resale property and rental accommodation.

Can this be the reason that cause the current increase of constructors that providing extraordinary rewards to investors who want to buy unsold off plan homes?

A few constructors have reportedly providing prospective buyers luxury cars as well as many other benefits if they are willing to buy new off plan properties that have about three year construction period.

Filed Under: Dubai Property Tagged With: Dubai Investment, Dubai Property, dubai property market, dubai real estate, invest in Dubai

Assertive Banking Could Help To Recover Dubai Property Market

April 26, 2010 By Rafael Leave a Comment

Dubai, much like the rest of the world’s favored destinations faced difficult times over recent years but predictions regarding both International City and the prime area of Dubai Marina suggest that 2010 will be a year of equilibrium.

Flats For Rent In Dubai

If we look at the average prices of flats for rent in Dubai per square foot from Nov 08 to Feb 10 in comparison to other global locations, the Dubai Marina has enjoyed relative stability despite a decline of 11%. As expected, International City saw less consistency than its prime neighbour with exacerbated movements in average rental prices; but the trend still followed a similar pattern. However both areas saw an upswing at the beginning of 2010 which suggests that the market is in a new property cycle. The average rents across Dubai’s real estate market for a two bedroom flat vary from AED 50,000 to in excess of AED 200,000. In Burj Khalifa, located in Downtown Dubai, advertised rents for new residential units range between AED 350,000 to 450,000. It will be a revealing insight into the property market to see where these transactions actually sit.

Another similarity between these two areas of Dubai is the pattern of price spreads. Dubai Marina maintains a higher price spread over the period June 2008 to Feb 2010 ranging from AED 2,500 per sq. ft at the peak and which has now stabilized at AED 1000, which is acceptable as the market place moves into its next phase. The peak of International City’s price spreads was in December 2008 and now has an average price spread of AED 800 per sq. ft. Despite these peaks and troughs both areas have experienced the same trend indicating an overall narrower spread during this period of time.

Uplift Dubai Marina Volumes

Despite transactional volumes remaining at a reasonable level including a sharp uplift in Dubai Marina volumes in February, the purchasers still control the negotiations. Without the support and increased lending ability of the banks and financial institutions the true impact of the acceleration could be lost. Globally we have seen that when banks place greater emphasis on the property value rather than the applicant’s affordability it contributes to a sub-prime crisis as seen in the USA. Furthermore, it permits speculators into the market place due to the minimal cost of entry.

There has been a call for action for the banks and financial institutions in Dubai to increase their lending and this is anticipated to occur during the later months of 2010 further enhancing the Emirate’s road to recovery.

Filed Under: Dubai Property Tagged With: Dubai International City, dubai property market, dubai-marina

Invest in Dubai Property Market

June 6, 2007 By admin Leave a Comment

Dubai is situated on the southern coast of Persian Gulf and is the second largest among the seven emirates in the UAE. Dubai population is about 1.35 million with the residents are greater part comprise of expatriates. Dubai possesses the most significant population compare to other emirates in the UAE. Most areas in the Dubai are surrounded by running sand dunes. In the last many years, Dubai seems to have went through a fast development in just about every field. If we go back to 20 years ago, we can see that Dubai at that time was just a city lived by itinerant Bedouin traveling around with their members and herds. However, in these days Dubai has convert itself to become among the most contemporary urban centers on the earth. With the ongoing thrive in property and tourism industry sectors, Dubai has rapidly get to be the center of attraction for many individuals and companies to come to to business here.

To a certain degree, Dubai can said to have some different from the other 6 emirates in UAE as the incomes from oil products bring in just about 6% of Dubai GDP. The primary incomes that make the substantial contribution to its GDP are actually the property as well as the tourism industries. While property sector has obtain a considerable part in Dubai economical growth.

Along with nonpareil standard of living and facilities that provide in Dubai, a lot of people are intending to buy property in Dubai and stay in there. A few of them are even preparing to migrate to the region. As a result, this has make a significant escalating in the home and property demand in Dubai. The high rising of the demand for residential property in UAE has resulted in the price raise for Dubai properties. Subsequently, with the released of new real estate laws, Dubai has in a position to draw in even more investors to come in to buy properties. According to famous Middle East website, AME Info, claiming that an enormous investment of USD 4 billion has been pour into the real estate market in Dubai ever since the passing of new laws for Dubai property.

Dubai Investment Fund To Invest in Dubai Property

Currently, Dubai Investment Fund has projected to widen the perspectives of real estate investment for the following 3 divisions of property market in Dubai which are Industrial Property in Dubai, Commercial Property in Dubai and Residential Property in Dubai.

Dubai Investment Fund has targeted about 15 to 20% growth per year for the investment in property industry in Dubai. One of the leading developments in the economy of UAE happens to be the announcement of new Dubai Freehold Property Zones. Foreign people are eligible to buy and own Dubai property that are built in these free zones either on 99 years lease or permanent basis. This new announcement has create a great impact to the real estate market in Dubai. Out of the blue, real estate market in Dubai transformed from a wholely domestic market right into an international market. By way of fantastic way of life, Dubai has at the moment turn out to be the paradise for people from other countries who are looking for a fashionable and luxurious lifestyle.

The real estate and property prices in Dubai have demostrated a tremendous increase for the last several years. The real estate and property market in Dubai have witnessed a 40% rise in the rental price contrary to the Dubai rental property during the first six months of 2005. The Dubai property price for sale has also witnessed a significant growth from 20 to 50% during 2006. In accordance to a lot of experts in property, it seems to be the perfect time for investors to dabble in the property market in Dubai since property prices are very likely to rise even higher fro the near future with escalating property needs. A lot of investors are looking towards to buy property market in Dubai in order to gain the benefits from the market. Investors can make a really good profit by discerning invest in Dubai property and as long as they are invest their money carefully, they will be doing well.

Filed Under: Dubai Property Tagged With: Dubai Property, dubai property market, dubai real estate, invest in Dubai