Further Signs Dubai Property Market Is Stabilising

For the first quarter in nearly two years there has been a virtual stabilisation with slight declines in certain areas according to the Q1 2011 report from leading UAE property management company, Asteco.

Apartment rentals averaged a decline of 2% over the quarter, though drops of as much as 5% and 7% were seen in selective areas. Discovery Gardens and Dubai Marina fell 6% and 4% respectively, but with high transaction activity due to their favourable locations and increased affordability.

“The rental market stabilised in certain areas, with a downward trend in others, albeit at a lower rate. This is attributed to the pressure of new stock on the already oversupplied market, especially for apartments and offices. Internal movement is still high and is predominantly driven by a flight to quality and value for money,” said Elaine Jones, CEO, Asteco Property Management.

Overall, the report found these declines herald more rental declines in coming quarters, fuelled by various factors including tenants capitalising on lower prices by moving to more upscale developments. Increased supply in both Dubai and Abu Dhabi is also having an impact on rents, seeing some tenants who had commuted to Abu Dhabi from Dubai moving to the capital.

Villa rentals fared better, showing virtually no change since last quarter. Demand in secondary locations has increased as better prices and improving infrastructure boost value for money. The report found downward trends in villa rentals was set to continue, with more supply to be handed over in coming months.

Apartment sale prices also show continuing signs of stability, with prices having eased by 1% in the sector during the first quarter of 2011, with the decline slowing further from the 4% seen in Q4 2010. While the figure represented an overall trend, the report emphasises the depth of the Dubai market, characterised by a wide choice of high- to low-end properties in primary and secondary locations.

“The Dubai property sector is a dynamic market, with different areas and qualities catering to the various sectors of the market. While sales price trends for the last quarter were down, the decline is continuing to slow, as in previous months,” said Jones.

Demonstrating the variations, DIFC has seen prices reduce by 7%, attributed in part to the handover of new buildings. Falls here are also a result of landlords’ attempts to attract investment and increase transaction activity by lowering prices. Apartment sales figures in The Greens were down by 3% due to investors opting for nearby developments with more mature infrastructure and fewer congestion-related access problems.

“Transaction activity is on the rise, and as sentiment increases this will continue, with returning stability also aided by finance becoming more readily available,” added Jones.

No change was seen across villa sales, with low transactional activity continuing due low private investor interest. While further minimal declines are expected, Asteco’s report indicates improvements should be seen as improving economic prospects increase finance availability and down payments become more affordable.

Significant falls in office rents continued, at 10% over the Q1 2011, though at half the 20% decline seen in the previous quarter. The slowdown is the result of both domestic and international factors, including the country’s ongoing political stability, strategic location and attractive business environment, particularly amid the turmoil of some parts of the region. Businesses continue to move into Dubai from both international locations and other parts of the UAE, particularly the Northern Emirates.

“The UAE’s political stability, well-established financial credentials and strategic location at the crossroad of the east and west has always attracted inward investment and currently could well be viewed by many as a safer haven,” added Jones.

In office sales, transactional activity remains subdued, with prices dropping 3% over the quarter. JLT declined 4% as new supply continues to be delivered, but showed some of the highest transaction activity. The report attributes the ongoing slow-down to companies continued austerity in adopting asset-light strategies to reduced business fixed cost.

For more details, please visit www.asteco.com

Watch out for Asteco premium content reports online coming soon.

For more information please visit www.astecoreports.com
 

Dubai Bank Unveils Package Of Solutions To Help Customers Affected By Property Completion Delays

In line with its commitment to support the needs of customers, Dubai Bank today announced a package of solutions designed to help Ijarah property finance end users affected by delays to the delivery date of their properties. As part of a number of measures that will save customers time and money, the bank has revamped its Property Services Centre to expedite decision making, introduced a “stop date” that will see profit rates waived or refunded for eligible end users, and revised profit rates.

A consequence of the downturn in the real estate sector, the delivery date of some developments has been delayed beyond that stated in the Sale Purchase Agreement. End users affected by delays have been liable to pay profit rates, as set out in the terms of the Ijarah property finance agreement. As a Sharia compliant, ethically focussed institution, Dubai Bank has consulted with Ijarah property finance customers to develop a number of solutions to resolve the issue and ensure end users are treated in a fair and equitable manner.

With endorsement of its Sharia board, Dubai Bank finalised a solution for its Ijarah property finance customers, who have experienced a delay beyond the “expected date of delivery” (completion date plus extension period) of their property, which originally caused an accumulation of a large profit payment to the bank. The implementation of the new solution will result in waiving all profit accumulated due to the developer handing the projects beyond the expected date of delivery (anticipated completion date plus extension period), regardless of how long the period of time between the stop date and handover. This is in contrast to conventional banking principles which would see the end user continue to pay profit rates, regardless of the length of time to the handover date.

Furthermore, all Dubai Bank Ijarah property finance customers who are affected by the same will have their payment schedules redeveloped with new rates, with some eligible customers receiving refunds or adjustments to their existing finance amounts. Customers who took out Ijarah Property finance whose profit rates were calculated using a previous method, will see their profit rate retroactively revised to align with the applicable EIBOR (Emirates Interbank Offered Rate) plus a margin however, subject to the terms specifically stated in the Ijara property finance agreement. Dubai Bank will provide these customers with a rebate, as necessary. For existing clients who have Ijara facilities where the Ijarah rate is based upon the Dubai Bank Base Rate (DBBR), the applicable rate will also be reduced by 1%. This reduction will affect future profit rates and will not be applied retroactively.

Mr. Giel-Jan Van Der Tol, CEO of Dubai Bank, said: “We have made it a priority to identify solutions to help end users affected by delays to the delivery of their properties. Being a Sharia Compliant Bank, which runs under ethical principles inherited from Sharia rules the solutions we have developed are entirely in line with commitment to share the risk with our customers. We thank all our customers for their feedback and look forward to continuing to meet their property finance needs.”

Mr Hisham Hamoud, Head of Retail and Chief Operating Officer of Dubai Bank stated that:”The process of dealing with customer cases is anticipated to take several weeks, with the bank committed to ensuring all necessary adjustments and refunds are completed by May 31, 2011.”

To expedite the process Dubai Bank has revamped its Property Services Centre. Encompassing a cross-functional team, the centre will house all relevant decision makers in one place, including representatives from the legal, Sharia and finance departments. Consequently, decisions on the revision of profit rates, rescheduling or restructuring of finance facilities, and calculation and payment of any rebates owed to the end user will all be made quickly and efficiently from one centralised location and as per Sharia rules and principle.

 

Dubai Silicon Oasis Showcases Cedre Villas At Moscow International Property Show

Dubai Silicon Oasis (DSO), the integrated free zone technology park, announced it is showcasing today its AED1.55-billion Cedre Villas project at the Moscow International Property Show, an exclusive real estate show that includes a personally invited audience of high net worth individuals.

A leading foreign property show organized by aigroup, the Moscow International Property Show is presented bi-annually in April and November and currently in its seventh year. Running from 8-9 April in Moscow, it provides a platform for worldwide developers and real estate agencies to network with distinguished representatives from the government and private sectors as well as real estate portfolio managers.

Dubai Silicon Oasis is leveraging the boutique format of the show to spotlight the 1,047-Cedre Villas development comprising luxury, executive, town house and twin villas ranging between three to five bedrooms. Located within the 7.2-square km state-of-the-art integrated tech park, the villas are available in three architectural models – modern, traditional, and Arabic – and are offered at very competitive rates.

Waleed Bin Shafie, Vice President – Real Estate Sales at Dubai Silicon Oasis Authority (DSOA), said: “Dubai is gaining popularity as a holiday destination among Russians who are keen to invest in a second home here. The Moscow International Property Show has stringent criteria of participation and welcomes exhibitors that enjoy high credibility among investors and buyers.

“Our participation at this show offers valuable exposure for Cedre Villas to elite buyers. As a professional platform to exchange information, complete transactions and conclude partnership agreements, we are confident the property show is an ideal forum to highlight the unmatched experience that Cedre Villas offers.”

DSO has completed selling and leasing 64 per cent of the first phase of the Cedre Villas development. Construction work on the second phase was completed in May 2010 with nearly 40 per cent of the units sold prior completion.

Cedre Villas offers residents a community centre encompassing an exclusive clubhouse, a shopping complex, health and leisure facilities, as well as swimming pools, schools and academies, clinic, play areas and other features.

The Cedre Villas project is part of a comprehensive metropolitan community at DSO that combines office towers, research and development (R&D) and industrial zones, educational institutions, luxury apartments, villas, hotels, healthcare facilities and a wide range of lifestyle options to create a dynamic commercial and social environment.

Wholly-owned by the Government of Dubai, DSO operates as a free zone for companies producing semiconductors, microelectronics, and other high-tech products seeking to establish regional headquarters and centers of research and development in the Middle East and Africa.

 

Moevenpick Hotels Resorts Opens Fourth Property in UAE

DUBAI, UAE, January 24, 2011/PRNewswire/ –New Hotel in ’Old Dubai’ Deira Gets First International Five Star Hotel in a Decade

The upscale hotel management company, Moevenpick Hotels & Resorts opened its fourth hotel in the United Arab Emirates this month, the Moevenpick Hotel Deira, bringing its portfolio to a total of 69 properties in key international destinations.

The 216-room hotel – Deira’s first international five-star property for more than ten years, is situated in the commercial district on the north side of Dubai Creek.

The hotel is less than three minutes’ walk from a Metro station and fifteen minutes by car from Dubai International Airport, whilst offering easy access to many of Dubai’s traditional landmarks such the Spice and Gold Souqs, as well as six golf courses all less than 25 minutes away.

Michael Nugent, the hotel’s general manager said the property is filling a demand for affordable upscale accommodation in Deira from business executives, as well as destination travellers and inquisitive shoppers.

"While Dubai has been on a building boom, Deira’s five-star hospitality sector has been somewhat stagnant and we mean to bring in new energy," he said.

Nugent noted that the hotel is designed as a ’new-era heritage property in the city offering the latest in efficiency and comfort’. The hotel incorporates an executive floor as well as 25 suites.

For private events, the hotel is thoughtfully equipped with seven dedicated rooms for corporate meetings and social functions for up to 90 guests – all with natural daylight.

Meanwhile, instant Wi-Fi is available throughout the hotel’s public areas, backed up by around-the-clock support from the Business Services team.

The Moevenpick Hotel Deira offers three dining options. Jigsaw features a la carte and a buffet selection ’with a difference’. Wok In’s intention is to represent the spirit of the Far East with interactive cooking taking place ’centre stage’ in the contemporary Asian restaurant. Wok In Bar has its sights set on being a sought-after local rendezvous and features live entertainment.

Fitness is not forgotten and the hotel has a rooftop pool and a well-equipped gym. Guests also enjoy access to the private beach and facilities at the Oceana Beach Club on The Palm Jumeirah, less than 25 minutes away by complimentary hotel shuttle.

The Moevenpick Hotel Deira is one of four projects in Dubai from Moevenpick Hotels & Resorts and real estate developer, Seven Tides, alongside the 396-room Ibn Battuta Gate.

Sarah Fernandez,
Communications Manager,
Sarah.fernandez@moevenpick.com,
+971-554003189

Movenpick Hotels Resorts Seals Colombo Management Contract Deal Marks Swiss Chains First Property in Sri Lanka and Further Strengthens its Asian Profile

DUBAI, UAE, December 13, 2010/PRNewswire/ — Movenpick Hotels & Resorts has secured a management agreement to operate the Movenpick Hotel Colombo, a 180-room property in Sri Lanka, which is expected to open by mid 2013.

The upscale property, located next to Liberty Plaza in the heart of the city, will occupy half an acre in the prime downtown district, surrounded by commercial businesses, high-end residences and prestigious restaurants.

The 19-floor hotel – being designed with sustainable build and operating requirements – will feature contemporary architecture and room sizes vary from 36sqm for standard rooms up to 70sqm for a suite.

Alongside one speciality restaurant will be an all-day dining venue, rooftop bar and nightclub, and guests will be able to unwind in the fitness centre, spa and pool and receive 24-hour room service, while executives will be able to avail of the Boardroom and Business Centre.

Andreas Mattmuller, Chief Operating Officer of Movenpick Hotels & Resorts, Middle East & Asia, said the company is very excited about opening in Colombo, which is in line with its development strategy to secure projects in key Asian markets.

"It’s a great opportunity to expand our presence in such an emerging travel destination," he said. "It dovetails perfectly with our commitment to international expansion and will strengthen our brand portfolio in Asia."

He added that Movenpick Hotels & Resorts look forward to working with owners SoftLogic Holdings in establishing and growing the business.

Ashok Pathirage, Chairman of SoftLogic Holdings, said: "We were keen to work with a globally recognised brand and Movenpick Hotels & Resorts meets our criteria perfectly. I am sure with their world-renowned levels of service and large client base, they will be a successful addition to the Colombo hospitality scene."

Movenpick Hotels & Resorts, an upscale hotel management company with over 12,000 employees, is represented through over 90 hotels existing or under construction in 26 countries with a concentration on its core markets in Europe, Africa, the Middle East and Asia. The international hotel group with roots in Switzerland is expanding and has a stated objective of increasing its hotel portfolio (existing and under construction) to 100 by the year end 2010. With two hotel types, business and conference hotels, as well as holiday resorts, Movenpick Hotels & Resorts has clearly positioned itself in the upscale segment and stands for quality, reliability and care with a personal touch. The hotel group is owned by Movenpick Holding (66.7%) and the Kingdom Group (33.3%).

For further information:
Movenpick Hotels & Resorts
Laura Perez
Director of Communications – ME
Shatha Tower, Floor 39, Office 3903
P.O.Box 500590, Dubai , UAE
Phone +971-4-367-1927
Fax +971-4-367-2688
laura.perez@moevenpick.com
http://www.moevenpick-hotels.com

 

The Address Dubai Mall and The Address Montgomerie Dubai win top laurels at prestigious Arabian Property Awards

The Address Dubai Mall and The Address Montgomerie Dubai, the five star premium hotels owned and operated by The Address Hotels + Resorts, have won important laurels at the Arabian Property Awards 2010.

The Address Dubai Mall, linked directly to the world’s largest shopping and entertainment destination, won the Highly Commended Award for Best Hotel Construction & Design (Over 50 Rooms); and The Address Montgomerie Dubai, the first retreat style property in The Address portfolio, was adjudged the Highly Commended Award for Best Golf Course in Dubai.

Mr Marc Dardenne, Chief Executive Officer, Emaar Hospitality Group, said: “The Address Hotels + Resorts have set a distinct imprint in the hospitality sector of the region in a short span of time. The Arabian Property Awards for our hotels reiterate the top-notch standards of the properties in design, location and service. These unique features enable us to ensure tangible benefits for all our guests.”

He said: “The two award-winning hotels have distinctive personalities; one is centrally located in the city adjoining The Dubai Mall offering guests the convenience of easy shopping, while the other offers a unique lifestyle experience set amidst the rolling greens and fairways of The Montgomerie Dubai golf course.”

Mr Stefan Viard, Resident Manager of The Address Dubai Mall and Mr Ed Edwards, General Manager of The Address Montgomerie Dubai received the honours from Mr Stuart Shield, Property Awards Chairman, at a gala ceremony held recently.

The Arabian Property Awards, organised in association with Bloomberg Television, is part of the International Property Awards, the world’s most prestigious competition dedicated to finding the best real estate professionals across the globe. The winners were adjudged by a panel of eminent professionals drawn from around the world.

Adjudged as ‘Dubai’s Leading Lifestyle Hotel’ at the World Travel Award 2010 in less than one year of opening, The Address Dubai Mall is located in Downtown Dubai. It provides stunning views of The Dubai Fountain – the tallest performing fountain in the world, and Burj Khalifa, the world’s tallest building. Designed in light wood furnishing, all 244 rooms and suites in the hotel have rich interiors. The rooms have avant-garde features including flat screen TVs, complimentary wireless Internet access, iPod docking stations and gourmet coffee and tea machines.

An idyllic golf retreat and winner of the ‘Best Golf Retreat in the Middle East’ at the World Travel Awards, The Address Montgomerie Dubai accomplishes perfect harmony by combining premium golf in sublime surroundings. An exclusive retreat with luxury lifestyle amenities, the property offers one of the most luxurious golf experiences in the Middle East.
 

Ocean View Named Best Real Estate Agency At Arabian Property Awards For Second Year Running

Ocean View Real Estate has received three prestigious awards at the Arabian Property Awards: ‘Best Real Estate Agency Dubai’, ‘Best Real Estate Agency Abu Dhabi’ and ‘Best Real Estate Agency Arabia.’

In addition, Ocean View Abu Dhabi has been nominated in the Best INTERNATIONAL Real Estate Agency category at the International Property Awards which will be held in London in November.

The Arabian Property Awards, in association with Bloomberg Television, were presented at a glittering awards ceremony on 26th October at the Madinat Jumeirah.

“These awards serve as a testament to our dedication and commitment in providing the very best customer service and turn-key Real Estate experience. A great achievement indeed, considering the current long period of turmoil within the property industry,” said Tim Boswell, founder and CEO of Ocean View Dubai.

“I am extremely proud of our achievements, especially in the last two years, when everyone has been feeling the effects of the worldwide economic crash. We have invested heavily in people and resources, thus raising the bar on customer service. We have worked tirelessly to be different from others and go the extra mile when it comes to personal and professional customer service,” added Boswell.

Much of the judging for the Arabian Property Awards was carried out by the International Property Awards’ panel of judges at the London offices of Bloomberg Television. This year’s judges included Luke McKend, industry head property markets of Google UK; Peter Bolton King, group chief executive of the National Federation of Property Professionals; Christopher Hall, president elect of FIABCI; Thijs Stoffer, International Consortium of Real Estate Agents Association (ICREA); Fiona Nixon, chairman of the Australia Institute of Architects, Hendrik Nelde, president of FIABCI Belgium; CEO of the German Real Estate Association.
 

TASWEEK Real Estate Marketing & Development Launches New Property Management Services For Abu Dhabi & Dubai

TASWEEK Real Estate Development and Marketing, an advisor and solutions provider serving the Middle East real estate markets, has announced that it has initiated property management services in Abu Dhabi and Dubai by signing its first property management contract and has started handling a few buildings in both emirates. The new service portfolio includes customer management, financial management and restructuring, facilities management, and linkages to reliable property service providers.

TASWEEK’s property management services will help minimize the vacancies and maximize the profits of property owners by handling their operational needs on a day-to-day basis. The new portfolio will meet the growing demand for property management services within the regional real estate sector driven by high levels of competition, the availability of more products, and the need for effective cost-saving strategies.

“Our latest package of services complements our vision of becoming a one-stop shop for serving the entire real estate services and marketing chain. The UAE’s real estate market is expected to achieve a better balance between demand and supply this year and so property owners need to fully optimize their investments and do business with the right partners. We shall deliver our property management offerings with the same levels of integrity, accountability and professionalism that have helped us establish a leading position in the regional real estate markets,” said Masood Al Awar, CEO, TASWEEK Real Estate Development and Marketing.

TASWEEK’s latest lineup of services is part of expansion plans which include its entry into additional markets such as healthcare and education aside from its regular residential and commercial base. Projections of a 3.2 per cent growth in the UAE economy for 2010 have encouraged the company to consider potential property investments in Abu Dhabi and Dubai worth around AED 1.5 billion which could net AED 300 million in profits within three years.

TASWEEK Real Estate Development and Marketing facilitates Purchase and Sale of Strategic Assets; Asset Management; Joint Ventures and Strategic Alliances; and Marketing Consultancy. It reported a 5 per cent increase in shareholders’ equity during its commencement of commercial activities in 2009 and is set to post another strong year through strategic acquisitions, joint venture investments, and new services.
 

TASWEEK Real Estate Marketing & Development Launches New Property Management Services For Abu Dhabi & Dubai

TASWEEK Real Estate Development and Marketing, an advisor and solutions provider serving the Middle East real estate markets, has announced that it has initiated property management services in Abu Dhabi and Dubai by signing its first property management contract and has started handling a few buildings in both emirates. The new service portfolio includes customer management, financial management and restructuring, facilities management, and linkages to reliable property service providers.

TASWEEK’s property management services will help minimize the vacancies and maximize the profits of property owners by handling their operational needs on a day-to-day basis. The new portfolio will meet the growing demand for property management services within the regional real estate sector driven by high levels of competition, the availability of more products, and the need for effective cost-saving strategies.

“Our latest package of services complements our vision of becoming a one-stop shop for serving the entire real estate services and marketing chain. The UAE’s real estate market is expected to achieve a better balance between demand and supply this year and so property owners need to fully optimize their investments and do business with the right partners. We shall deliver our property management offerings with the same levels of integrity, accountability and professionalism that have helped us establish a leading position in the regional real estate markets,” said Masood Al Awar, CEO, TASWEEK Real Estate Development and Marketing.

TASWEEK’s latest lineup of services is part of expansion plans which include its entry into additional markets such as healthcare and education aside from its regular residential and commercial base. Projections of a 3.2 per cent growth in the UAE economy for 2010 have encouraged the company to consider potential property investments in Abu Dhabi and Dubai worth around AED 1.5 billion which could net AED 300 million in profits within three years.

TASWEEK Real Estate Development and Marketing facilitates Purchase and Sale of Strategic Assets; Asset Management; Joint Ventures and Strategic Alliances; and Marketing Consultancy. It reported a 5 per cent increase in shareholders’ equity during its commencement of commercial activities in 2009 and is set to post another strong year through strategic acquisitions, joint venture investments, and new services.
 

Landmark Properties Receives ’Best Property Listings In The UAE’ Accolade At Propertyfinder.ae Awards

Landmark Properties, one of the largest property brokerage agencies in the UAE, has been acknowledged as having the ‘Best Property Listings in the UAE’ at the inaugural propertyfinder.ae awards. Selected from a shortlist of nine reputable brokerages, Landmark Properties had the best quality property listings of all 35,000 listings on propertyfinder.ae.

Set to be held monthly, the propertyfinder.ae awards – organized by the number one dedicated property portal in the UAE – pay tribute to businesses in the UAE for a variety of talents and achievements. The ‘Best Property Listings Award’ is determined by an algorithm of metrics measured by a range of factors including quality of photos, content, pricing and accuracy.

“propertyfinder.ae works closely with all its members to provide a transparent and compliant platform that everyone can benefit from,” said Marcello Sambartolo, Head of Marketing at propertyfinder.ae. “This can be a testing industry to play a role in with so much change taking place and undergoing massive regulatory change, but we believe it is beneficial to select and recognise the leaders that set the benchmark of highest professionalism and dynamism during this time.”

“A system that provides exceptional standards of clarity and efficiency is fundamental for potential home buyers and investors in the Middle East, propertyfinder.ae powers the real estate market by creating opportunities through successfully joining buyers and renters with landlords and homeowners through its website,” said Charles Neil, CEO of Landmark Properties. “We are delighted to receive this award from propertyfinder.ae and to be a part of its community.”

A total of 10 awards and certificates were presented from a pool of 200 brokerages across the UAE recognising a variety of talents and achievements.