Weekly Dubai real estate news digest. Issue 4

28.07.2013
    Well-rounded growth on horizon  
Welcome to the fourth 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 4  |  July 28, 2013

Well-rounded growth on horizon 

During the real estate market boom a few years ago, prices of prime properties skyrocketed. However, this time around, it’s the rest of Dubai that’s picking up – even the areas once considered “budget” locations.

In our previous edition, we highlighted the growing popularity of International City and the declining demand for JBR. A new report by real estate advisory firm Jones Lang LaSalle affirms these trends, pointing out that as of June 2013, there were about 360,000 residential units in the areas they monitored. Most of the newer projects in development are, according to the report, located outside central Dubai.

It’s difficult to predict demand in the future. While newer projects are definitely all the buzz now, prime properties are also looking at expansion. JBR’s declining popularity has been attributed to ongoing construction projects, but over 300 new residential apartments will be ready in the area by the end of the year.

On one hand, there is the announcement of all these new developments that are almost ready to be handed over and on the other, Dubai’s real estate regulator announced that the Dhs3 billion Beachfront Living project that was being constructed in the Waterfront has been cancelled. Investors have until August 1 to submit their claims in regards to the project that was supposed to include a 29-storey hotel and a 42-storey residential tower. 

In the bigger picture, there is a lot of good news for investors. According to a senior government official, the new real estate protection law, Tanweer, is ready and is just awaiting clearance from concerned authorities. The law is aimed at protecting the interests of investors by ensuring they get a full refund if a developer fails to deliver or breaches the contract.

Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. We hope that our round-up of stories on some of the most interesting patterns in property demand and regulatory changes has been insightful. Be sure to catch our next issue to find out more about the latest on the market.
 

Sincerely,

Pashma Manglani

Editor


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300 new apartments in JBR


Over three hundred new residential apartments will be released in Jumeirah Beach Residence (JBR) at the Al Bateen residences by the fourth quarter of 2013.

The 50-storey residential tower comprises 304 apartments while the 24-storey hotel tower has 110 rooms. According to Sean McCauley, director of agency services, Asteco Property Management, the starting prices are Dhs16,146 per square feet with an entry unit price of over Dhs2 million. 

 

Read more on Emirates 24/7


Dhs3b Beachfront Living Project cancelled: RERA


Dubai-based Omniyat Properties' Dhs3 billion Beachfront Living project is being cancelled, according to the Real Estate Regulatory Agency (Rera). 

In a notice published in a local newspaper, Rera asked investors to submit their claims within two weeks after the date of publication (July 18). Investors have been asked to submit the property reservation form, original property agreement, passport copy and original payment receipts to the Real Estate Projects Liquidation section.

The project was supposed to consist of a 29-storey hotel, a 42-storey residential tower and a Rodeo Drive-style retail strip.

 

Read more on Emirates 24/7


38,000 more units by 2015


Affordable locations are seeing an increase in prices while there has been a slower pace of growth for primary locations, according to a new report from Jones Lang LaSalle. 

Projects in newly developed areas are still lagging behind, the real estate advisory firm said in its market report, covering the second quarter of 2013. Total residential stock in areas monitored by the firm stood at 360,000 units as of June 2013. It pointed out that 3,400 units (mostly apartments) were handed over in the second quarter of 2013.

By 2015, some 38,000 additional residential units are expected to be added to the market but some experts have expressed concerns about the effect of a lot of new supply on rejuvenated prices. The report says that most of the upcoming residential supply will be located outside of central Dubai in the south and east of the city.  

 

Read more on Property Wire


Tanweer ready, awaits release


The Real Estate Investor Protection law or "Tanweer" is ready and awaiting clearance, said a senior government official.

The law aims at minimising legal disputes and protecting the rights of investors. The initial draft of the law stipulated that investors would get a full refund if a developer failed to complete or handover a project within a certain time-frame. Investors also have the right to claim compensation for breach of any warranty or undertaking mentioned in the contract. 


Read more on Emirates 24/7


Maritime City to get new high rises


At least 15 new mixed-use towers will be completed over the next three years in Dubai Maritime City, the world's first purpose built city for the global maritime industry. 

The city, which covers 2.27 million square metres in the area, will be offering residential, retail and recreational facilities. A senior executive at Drydocks World assured that the projects will be completed in a timely manner since developers have been given a deadline and their contracts stipulate that they face penalties for any delays. 


Read more on Emirates 24/7


Update on mortgage cap law


The UAE Central Bank discussed an update for its draft on mortgage law, which had previously been referred to concerned agencies for further review.

In December, the Central Bank announced plans to limit mortgages to 50% for first-time foreign buyers and 70% for locals, while subsequent homes would be set at 40% and 60% respectively. However, in March, it agreed to soften the cap to be set at 75% of the value of a property for foreigners who are first-time buyers and 80% for local citizens.  

 

Read more on Arabian Business


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