Weekly Dubai real estate news digest. Issue 14

06.10.2013
    Record-breaking achievements
Welcome to the fourteenth 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 14 |  October 6, 2013

Record-breaking achievements

It's been a busy week in the realty market. Daily property transactions jumped five times as owners rushed to complete the registration process before the transfer fee is hiked to 4% from 2%.

Advancements have been made to the Dhs21 billion mega project for Mohammed Bin Rashid City's District One. Private developer Meydan and Sobha are jointly developing 1,500 luxury villas, set in 1,100 acres of parkland around the world's biggest man-made lagoon. The project will form the first phase of the planned multi-billion dollar project, located between Sheikh Zayed Road, Emirates Road and Al Khail Road. 

In the same week, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, inaugurated the Dubai Water Canal, which will connect the Business Bay with the Arabian Gulf. Developers are looking at the stretch across the canal to ride value gains from the water body. "Waterfront areas are a value addition and important indicator to the beauty of any city in the world," said Mahdi Amjad, executive chairman and CEO at Omniyat Properties.  

Residential house prices and rents have continued to rise in Dubai for the third consecutive quarter. According to a report by Jones Lang LaSalle, the increase is happening at an "unsustainable rate," and may see correction over the next 12 months. 


Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. With the Expo 2020 coming up, Dubai has put in all its efforts towards developing the city. We hope that our round-up of stories and expert opinions has helped give you an overview of some of the exciting developments that will soon be available.

With Cityscape just around the corner, we're sure to have an issue full of interesting stories next week, focusing on market trends and new developments. Be sure to catch our next edition!

 

Sincerely,

Pashma Manglani

Editor


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Dubai to have largest man-made lagoon


District One is one of the most widely-anticipated projects in the emirate, constructed around the world's largest manmade lagoon.

Crystal Lagoons Corp., a technology developer of giant crystalline lagoons, will be constructing the 40-hectare lagoon, almost four-times the size of the world's currently largest. The project will be entered into the Guinness Book of World Records once completed. 

Mohammed Bin Rashid City - District One, a $7 billion project, is a joint venture between the Dubai-based Meydan Group and the real estate developer Sobha Group. The pair are developing 1,500 luxury villas, set in 1,100 acres of parkland. 



Read more on Emirates 24/7


Marina: World's tallest block


Dubai Marina has 14 of the 20 current tallest buildings in the emirate and has been named the "tallest block in the world" in a new report, titled 'Megatall: What does it take?', by EC Harris.

Dubai has three of the world's four tallest buildings to be built there alongside the current tallest building in the world, the Burj Khalifa. Dubai is home to Princess Tower (414 metres), the world's highest residential tower; JW Marriott Marquis (355 metres), the world's highest hotel; and Cayan Tower, formerly known as Infinity Tower, the world's tallest tower with a 90-degree twist.

Overall, the emirate has 909 high-rises and 448 skyscrapers.


Read more on Emirates 24/7


Prices rise for 3rd consecutive quarter


Home prices and rents in Dubai and Abu Dhabi have continued to rise for the third quarter in a row.

Figures posted by classified website Dubizzle showed prices rose in the past quarter by up to 29% for a three-bedroom home on Dubai's Palm Jumeirah with a 30% increase for a similar unit in Abu Dhabi's Al Raha Beach.

 

Read more on The National


House prices 'heading for correction'


Residential house prices in Dubai are increasing at an unsustainable rate and may see correction over the next 12 months, a report by property consultancy Jones Lang LaSalle said today.

House prices in the emirate have climbed more than 22% over the past year - higher than any major global market.

The surge, the report said, has been driven by speculative buying, adding, "such rates cannot be supported by the fundamentals alone."


Read more on The National


Property fee increase could hit mortgage buyers


Buyers who have just acquired a property in Dubai through mortgage financing could be caught short by the hike in registration fees to 4% from 2%.

"Most of the financed buyers are taking loans on an 85% loan-to-value, which means the balance is from their own cash," said Chandrakant Whabi, CEO of Acrohouse Properties. "Finance is normally given on net selling price; the additional 2% brokerage fee and 2% transfer charges are paid for by the buyer, which is the normal market practice."
The hike comes into effect today, Oct. 6. 

As of now, the buyer puts up the security deposit of 10% while signing the MoU but with the hike, there is a risk of this being forfeited if the buyer doesn't arrange the funds before the agreed transfer date. This could affect agreements signed before the announcement date but where the transfer has not taken place. 


Read more on Gulf News


Highest hikes in International City, JLT

Average rents for apartments in International City jumped 35% year-on-year, beating upscale communities such as Downtown Dubai and Dubai Marina, according to a new report.

Among villa communities, Springs is the clear winner, registering a 34% increase in the last one year, Asteco's report revealed. This is closely followed by Mirdif, which has seen a 31% increase. 

Average rents for one-bed units in International City hit a high of Dhs32,500 per annum in Q3 2013 compared to Dhs23,000 in Q3 2012.

The second highest rental increase among apartments was witnessed in Jumeirah Lakes Towers (JLT) with average rents rising 28% in the last 12 months. One-bed units are now Dhs62,500 per annum.

Dubai Marina took third place, seeing a 25% rise. Average rents for one-bed units is Dhs80,000. 


Read more on Emirates 24/7


No cold calls or face fines, brokers told


Dubai property brokers have been warned against cold-calling potential clients.

The Real Estate Regulatory Authority (RERA) issued an official letter to all the city's registered brokers, reminding them that telemarketing violates its rules.

RERA's Real Estate Inspection division has said that it has been flooded with complaints from homeowners in recent months, as prices continue to rise steadily.

 

Read more on The National


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