Wednesday, June 25, 2014

Investing in Dubai? Documents first please!

RERA (Real Estate Regulatory Agency) has taken several steps to regulate off-plan property sales. Even investors now demand several official documents before making the booking payment. These include Land title deed, Escrow account number, DLD approvals and the Agreement.

Rera has also introduced regulations to ensure that the completion of these projects such as developer paying 100% for the land and making a 20% down payment bank guarantee or completion of 20% construction before selling the plan. A 10% performance guarantee is also demanded.

These measures come in the government's race to make its real estate market, one of the most reliable markets in the world.

Know your property rights through Dubizzle

Dubizzle classifieds are now launching a website to provide online property advice to the public.The move was made after Dubai and Abu Dhabi were placed in the center of JLL transparency list of 102 markets. This effort will enable tenants to understand their rights better. It will disrupt exploitation of tenants by landlords as well as filter any baseless complaints from going to courts.

In November, Rera had launched a dispute settlement center that resolved cases within 30 days. In spite of that, the pressure is huge. Dubizzles website is however, hoped to be an additional support due to its wide reach and easy and quick access. 

Danube Group now in real estate

Dubai-based building materials giant Danube Group has taken its first foray into the property development market with the launch of a $136mn residential project in Al Furjan.

 Danube, originally a building materials company, is now making a come through in the property development market. The project set to start soon is scheduled to be complete in 2016. RizwanSajan, chairman of Danube was glad to re-invest in real estate to help the market grow further. He considered it a display of his commitment to the UAE market. The Dreamz will comprise of 175 three and four bed townhouses in the Al Furjan community. Price range will begin from 680,000.

Tuesday, June 24, 2014

Dubai Stock Market- Is it another bubble?

Dubai stock market has been sloping downwards in the last few weeks. The stocks were showing a steady rise since 2012 creating a bull market until May this year. After that, the bull market ended and the stock has fallen by 25% since its peak in May.
The previous boom that ended tragically in 2008 caused a great stir in the market. There are speculations that this might be another one. The government has taken several measures to secure the market, like issuing caps and imposing registration fees etc. 

However, relative to other options, the Dubai market seems the better choice to Arab investors against other unstable conditions in the region.

DLD launches Global Real Estate Connect Programme

DLD (Dubai Land Department) has declared the launch of a Global Initiative Real estate Connect programme in association with Dubai Real Estate Institute (DREI) that will help the sector to gain experience and create a global network for investors.


The programme will commence with a trip of local professionals to Brazil which is a member of BRIC (Brazil, Russia, India and China), who will not only gain valuable knowledge and exposure but will also portray Dubai as a rising global player in the real estate market.

The trip will span over a week starting August 27, including a short course by University of Sao Paulo and a 3-days conference ending with a visit to Brazilian Real estate Awards Ceremony, organized by the International Real Estate Federation.

Dubai Property Transactions Exceeds Dhs.100 Billion, DLD

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The Dubai Land Department (DLD) has registered 26,645 real estate transactions worth Dh101 billion from the beginning of 2014.

Dubai real estate market has been blooming since the beginning of the year, reaping transactions worth Dh101 billion so far. DLD director Sultan Butti bin Mejren speculates the trend to continue throughout the next two years at least. According to him, the increase is due to greater awareness of investors as well as the rich options made available and not due to speculation.

The Dubai government recently levied a registration fee of 4% that has, according to Bin Mejren, helped ward off speculators. The fees is still lesser compared to other countries, and the rewards that investors get, according to Bin Mejren, are unequalled globally.

Monday, June 23, 2014

New mega projects revealed for Expo 2020

New project works have begun in preparation for Expo 2020. The government is all set to complete its construction plans well ahead of 2020, allowing them extra time to make a test run for the big event.

Expo 2020 is set to run from October 20, 2020 to April 10, 2021 drawing over 25 million people to visit the country. Khalid Bin Kalban, CEO of Dubai Investments speculated a dramatic increase in the real estate investments.
Some of the under-construction and new mega projects announced included - Dubai Water Canal, Jewel of the creek, Al Habtoor City, Deira Islands, Aladdin City and Al Mamzar Beach project.