Weekly Dubai real estate news digest. Issue 6

10.08.2013
    Regulatory changes welcomed 
Welcome to the sixth 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 6  |  August 11, 2013

Regulatory changes welcomed 

Measures are currently being implemented to control the emirate's soaring property prices but are they enough? Seven new laws will be put in place in an attempt to help regulate the sector, the Dubai Land Department recently announced. 

According to Craig Plumb, head of research for the ME at global property consultant Jones Lang LaSalle, policymakers also need to focus on taking steps to make the market more transparent for budding home buyers.

With the UAE clearly on its way to a more regulated marketplace, industry professionals have welcomed the changes. At a time when prices have been soaring and an increase in demand is imminent, experts understand the need to monitor speculation and move towards a more mature market. 

Meanwhile, in other news, the commercial sector has shown real progress in the first half of this year with a new study highlighting growth in demand. The UAE market topped the Royal Institution of Chartered Surveyors' Occupier Sentiment Index and came second in its Investment Sentiment Index. The organisation's chief economist highlighted that these numbers demonstrate that the "recovery story is gaining traction" in the UAE. 

Another clear indicator of the commercial sector's success is the project for the largest commercial tower. The head of the Dubai Multi Commodities Centre invited people from around the globe to participate in the naming of this new tower, promising a gold reward for anyone who comes up with a name that "clicks" with the organisation. 
 

Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. For this week, it's clear that there are a lot of changes happening within the industry with new regulations. However, it is difficult to predict the impact of this without implementation but we'll be looking out for the best stories to explain to you the effect that has on the local market. Be sure to catch our next issue to find out more about the latest real estate developments that are just around the corner.

Sincerely,


Pashma Manglani

Editor


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Commercial sector on the rise: Study


The UAE's commercial property sector is back in the game with growing interest from global occupier and investment segments, according to the Royal Institution of Chartered Surveyors (Rics).

The UAE market topped the Rics Occupier Sentiment Index and is second in the Rics Investment Sentiment Index. These indices are designed to chart how sentiment in various countries has changed compared with the previous three-month period.

In its new Global Commercial Property Survey, Rics said: "Further improvements in sentiment in both the occupier and investment segments of the UAE real estate market show that the tone in the property industry is continuing to gaining round, reversing the negative pattern that characterised the market from the back end of 2009 through till the middle of last year."


Read more on Emirates 24/7


70% increase in H1 property valuations
 

The Government of Dubai's Land Department announced that its Valuation Committee - in co-operation with Dubai's Real Estate Appraisal Centre - valued 2,388 properties worth Dhs89 billion during the first six months of the year.

The number of transactions received in the first half of 2013 went up by 41% while the total value of properties undergoing evaluation rose by 69.8%. The Land Department's report showed that the average value of land in the Burj Khalifa area reached Dhs1,960 per sq. ft, a figure six times higher than the likes of Mirdif (Dhs320 per sq ft).

 

Read more on Arabian Business


7 new laws to regulate industry

The UAE has clearly been prioritising regulations aimed at protecting investors. The Dubai Land Department (DLD) has announced that seven new laws will be released within two years for regulating the sector and warding off speculators.

The laws are aimed at maintaining the recovery in property values without a price bubble, protecting investors, increasing the flow of development finance and curbing the practice of rapid "flipping" of off-plan purchases.

Dubai's property market has entered a new phase of growth and increased demand, said Sultan Butti Bin Mejren, director general of the DLD. The new laws will sustain that growth and protect the market from harmful practices, he told the Al Ittihad newspaper.

 

Read more on The National


'Help name the largest business tower, win gold'


The executive chairman of the Dubai Multi Commodities Centre (DMCC) has invited people to help name the recently announced tallest commercial building in the world.

In an interview with Kippreport, Ahmed Bin Sulayem says that considering the building will be an iconic global tower and home to multinational corporations, he would much rather hear from the world community than have to "pay a hefty amount to a consultant."

He says that the name can be suggested in any language - be it Arabic, English, Portuguese or Mandarin. "People can participate on my personal Twitter handle (@ahmedbinsulayem)," he explains. "They can share their opinion on what the name should be, and if it clicks with what we have in mind, the winner will be rewarded with gold."

Read more on AMEInfo.com


Brokers earn Dhs785m


Total commission earned by real estate agents and brokerage firms reached Dhs785 million in the first six months of 2013, according to data released by the Dubai Land Department.

Yousif Al Hashimi, director of the Real Estate Licensing Department at the Real Estate Regulatory Agency (RERA), said that the commission figures were an indication of real estate deals that include the lease and sale of both commercial and residential units with a total value of over Dhs39 billion for the first half of the year.

Last month, the DLD said that the total value of property transactions in the emirate rose by over 30% to reach Dhs108 billion as compared to the Dhs80 billion registered in the first half of 2012. 

 

Read more on Emirates 24/7


Ramadan rush for registration 


No online appointments for completing property registration are available until August 14 at the Dubai Land Department, real estate agents have told Emirates 24/7. 

A senior official at a top property brokerage revealed that there is a huge rush at the department, adding, "we even hear that banks are not getting appointments despite being allocated a certain quota." 

An official from the department admitted that there has been a rush but he added that they have appointed a 'registration trustees' service, allowing customers to complete transactions outside working hours through licensed legal offices. Trustees will initially handle sales, mortgages and leasing by accepting customer applications and sending them to the DLD for processing and printing. These will then be returned the next day by office or courier. 


Read more on Emirates 24/7


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