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The chips are in and the stakes are hot. They should be, for in contention is one of the world’s most beloved cities-the emirate of Dubai. Just at the start of this week, Dubai World emerged from a first meeting with its creditors- asking them for a standstill on US$22 billion of its debt for at least six months. In fact the whole affair was conducted under an atmosphere of strict secrecy and security, with attendees asked to be tight lipped about the proceedings. What has emerged is that the Dubai World executives formed a Committee to make a presentation for their case in requesting the moratorium. They were presumably assisted by executives from Deloitte and other auditors. What will happen now is that the request will be considered in the light of the presentation and the recouping of their assets and liabilities, undoubtedly redrawn to show their ability to remain solvent even after the debt has been repaid.

Meanwhile, most of the world already knows that the neighboring emirate of Abu Dhabi has given US$10 billion to Dubai World to help meet its current debt obligations on a US$4.1 billion Islamic Sukuk bond. What is amazing is that even this has not sent enough positive signals through the region. In the end it just might be required to pay off the debt or part of it in order to stop the negative sentiment that has echoed all through the world.

If that happens, the next question is whether Dubai will recover from its present crisis and will that recovery be for a short or a long term or will Abu Dhabi Property market oversee Dubai Real Estate market. Analysts are divided on the issue, but it is clear that Dubai’s Government will itself have to do something in this regard, rather than to wait for the interaction of market forces. It is known that market forces are driven by consumer and business sentiment, and when that sentiment remains negative or there is uncertainty about future action, markets are going to see a loss of value. If anything, the Dubai Government could have supported Dubai World in this time of crisis and given a positive signal to the world. By first announcing that it would support the entity and later withdrawing its support, it caused mass confusion and in fact set in motion rumors that the emirate itself was in danger of defaulting due to overextending its plans in the boom period. Nothing could be further from the truth as both Dubai World and the Government of Dubai are well equipped to deal with any financial emergency.

That said, in the short term the Government could assist businesses in getting credit to complete the outstanding projects. The present credit crunch means that new projects are facing financing difficulties in getting their projects off the ground. Everyone in the construction industry knows that there is a considerable lag between the booking and the completion of projects. Secondly, by renewing the longer three year visa for workers, Dubai would signal that it is ready to take on expatriate workers again for the completion of old projects and starting new ones. As things are, Dubai accommodation sector is going downhill, with accommodation in Dubai becoming a buyer’s game. Except for Dubai marina apartment , Dubai condos and Dubai villas- which has seen some consistency or even appreciation in value, in general Dubai flat rent, Dubai Apartments, and Villas in Dubai have depreciated in value over the last few months. A further dip in the market is expected by March-April 2010, after which the market is expected to recover by 2011. But it’s anybody’s guess as to what will really happen, and that is why the Government needs to take steps to see that Dubai is back on track again- the sooner the better. There is too much at stake.

According to estimates by a leading property consultancy firm, the sale prices of offices, flats and apartments in Dubai will continue their fall through the first quarter of 2010, mainly because of the excess of supply over demand. It is further estimated that apartment prices are set to take the biggest hit with a decline as much as 20 percent predicted during the next 18 months.

The firm noted that following the increase seen during the third quarter of 2009, the once promising villa prices also remained largely stagnated in Dubai with a marginal increase of 0.2 percent during the last quarter of 2009.

As for the prices of apartments, these dropped 4.3 percent in the last quarter of 2009, following the 3 percent decline in the third quarter. Moreover sale and leasing transactions in the commercial sector also remained low during fourth quarter 2009, with an average decline of 5.1 percent in sale prices, while the average office rents declined 8.4 percent.

The report predicted that average rents in Dubai are likely to fall, as there is an excess of residential units at a time when demand is fundamentally weak. Another new trend being witnessed is that Dubai developers are considering renting out their new units on furnished basis. This helps generate immediate revenue for them, rather than having buildings without tenants. Moreover the furnished apartments have a higher rental value due to availability of conveniences such as bedroom, furniture and kitchen appliances and the higher investment made in them.

Real estate agents state that the rentals for furnished apartments are 10 to 20 percent higher on average as compared to unfurnished apartments. Given the current situation in Dubai real estate market, several investors have started to look at acquiring furnished apartments for short-term rentals. Many estimate that several individual units will be converted into furnished apartments this year.

Presently, rents for furnished apartments are falling in the range between Dhs. 5,500 and Dhs. 8,500 per month. There is also wide consensus that furnished residential property will generate a 15 to 20 percent premium over a typical unfurnished property. As an example, a furnished single bedroom shoreline apartment at the Palm Jumeirah should normally fetch Dh. 150,000 per year by way of rent, while a similar unfurnished apartment should generate about Dh. 120,000 per year.

Meanwhile another advisory firm has remarked in its report for the fourth quarter of 2009 that the selling rates of Dubai’s housing units are slowly approaching their intrinsic value, which shows that the real estate market is beginning to settle down. As a result of this, we might see slight corrections every quarter, but no major changes from current levels.

Better Homes has grown from a one-woman enterprise in 1986 into a company comprising over 400 employees, providing a wide range of property services including short stays, residential and commercial sales and leasing, property management, project sales and marketing across the UAE. Whether you want commercial Dubai Villas Such as a Dubai warehouse, a Dubai office or residential property for living or for investment, we can accommodate your needs. Please contact Better Homes for a quote today.

 

About The Author: Daniel Marshel is a senior real estate consultant associated with Better Homes, a leading real estate firm in Dubai, UAE. He has more than 25 years of firsthand experience of working in Dubai Real Estate Market. He deals in buying and selling of commercial and residential property in Dubai along with long and short term rental in Dubai and its suburbs. His firm Better Homes offers online Dubai property listings, Dubai Rental Apartments and in general every aspect of Dubai accommodation.

All across the world, the jet setting bunch of our world's trendsetters prepare so religiously for their winter and summer holidays. From the luxurious beaches on the French Riviera to the picturesque islands of Crete, from the casinos of Monaco to the quiet luxury of the Maldives, you will readily find these classes of people languorously trying their luck at the gambling tables or stretched across their reclining beach stools or swimming in the cool or warm waters of the nearest pool. The onlooker would eye them with a certain measure of jealousy, as he or she would rightly be envious of their luxurious lifestyle. But they have earned it, and so should we....

  If you have the money, the time and the inclination, why not make Dubai your stopover for the next holidays? Contrary to a Westerner's idea of a vast sandy desert, Dubai has very much transformed itself into an enviable tourist destination worthy of world standards and recognition. No more the once sleepy fishing village of yore, Dubai is today an amalgam of various structures and events that are carefully planned to be of use and attraction to the traveler, no matter what his or her interests or nationality. Curiosity has no limits, and the very presence of world class facilities at your arm's reach is enough to pique the interest of even the most sedate tourist. If anything, the whole event will likely be more understated than overstated. At any given time there is so much going on across the length and breadth of Dubai that one may be perplexed as to how best to spend his or her time. From world class tennis courts to golf courses, from Formula 1 racing tracks to white pristine sandy beaches like Jumeirah, Dubai has it all. When it comes to miracles and wonders, Dubai even has a skating rink that is kept at the right temperature all through the year. This is one of its many marvels and speaks of the ingenuity of science. Talk about constructing an ice skating rink in the middle of a desert climate! But that is not all. Dubai also has its share of the tallest, longest, broadest- all planned to attract the tourist or weary traveler. One can visit the Burj Hotel, billed as the only seven-star hotel in the world, or take a desert safari, visit the Mall of the Emirates or take a boat ride across the strait separating Deira and Bur Dubai. Dubai has a cultural village encapsulating its history, and museums and a lot of shopping centers. There is also a Summer and a Winter Festival.

  Living in Dubai short term or long term offers a multitude of opportunities. There is a wide choice between Dubai apartments for the well off, to Dubai holiday apartments for a one to two month stay over. At the higher end of the line are Dubai holiday villas and Dubai luxury villas that range from ostentatious displays to quiet understated opulence. Dubai has something that will fit your pocket and lifestyle, so come and share the experience.

About The Author:
Daniel Marshel is a senior real estate consultant associated with Better Homes, a leading real estate firm in Dubai, UAE. He has more than 25 years of firsthand experience of working in Dubai Real Estate Market. He deals in buying and selling of commercial and residential property in Dubai along with long and short term rental in Dubai and its suburbs. His firm Better Homes offers online Dubai property listings, Dubai Apartments and in general every aspect of Dubai accommodation.

A review of recent trends in the property sector seems to indicate that Dubai is certainly on the crossroads of development. Yet the present lull in the building and construction sector is worrying many analysts, to say the least. In the opinion of the analysts, the present recession is indicative of a transitory phase in Dubai's property market. Since housing is one of the key indicators of economic activity anywhere in the world, the slump in the current market has certainly affected other sectors of the economy. With the housing sector on a downturn, and the consequent roll back of many developmental projects, it was clear that jobs would ultimately be lost and many expatriates would return to their home countries. While this was done in the best possible way and severance packages were also given, the episode is nevertheless likely to leave a bad taste in the mouth of many an overseas worker. To some it was quite abrupt and ruthless; others saw it coming and tried to hold on to the very end. But the fallout was inevitable and as many as 1000 employees have been affected in the housing sector alone. Nakheel had to lay off as much as 500 employees, representing as much as 15 percent of its own workforce. Similarly Damac has laid off 200 employees, Better Homes axing 50 staff, and Omniyat 69, with other firms bringing up the rear.

    Many experts feel that it is time to strengthen the property business sector with mergers and acquisitions and other means of cooperation and participation. While some dread the effects, others say it would be good for business on the whole as it would strengthen the sector on an overall basis. Since Dubai had been witnessing some cases of default on high end properties, it was even estimated that the Government would officially step in at some point to order the merger of failing institutions. This has not occurred yet however, and the fate of the firms and the projects still rests with the open market.

    Meanwhile a silver lining on the property cloud has been noticed in Dubai's marina property market. According to the real estate firm Asteco, prices in Dubai's marina properties have picked up during the year by as much as 18 to 38 percent. The same effect has also been seen in the villas in Springs Dubai marketed as a prime spring villa Dubai property. This has been verified by the fact that as of October 2009, a one bedroom apartment in Dubai is selling at Dhs.1300 per square foot, while a 2 bedroom apartment in Dubai is selling at Dhs.1250 per square foot. Maybe the Dubai property market is really on the brink of something better.

    According to the latest report of the Dubai House Price Index from Colliers International, real estate prices in Dubai have grown almost seven percent during the third quarter of 2009. Real estate transactions increased by 64 percent during the third quarter largely due to relative stability in prices and affordable housing. It is expected that the continuing property boom will be further strengthened by a series of new launches and openings within Dubai.

About The Author:
Daniel Marshel is a senior real estate consultant associated with Better Homes, a leading real estate firm in Dubai, UAE. He has more than 25 years of firsthand experience of working in Dubai Real Estate Market. He deals in buying and selling of commercial and residential property in Dubai along with long and short term rental in Dubai and its suburbs. His firm Better Homes offers online Dubai property listings, Dubai Apartments and in general every aspect of Dubai hotel apartments.

As a real estate company, Better Homes has around 20 years experience in the Dubai property market. This makes it one of the most knowledgeable and experienced firms in the Dubai real estate sector. It matters not whether a client is interested in buying, selling or renting Dubai apartments, villas, marina properties or making any other kinds of property deals-Better Homes real estate wing is here to help.

 

The good news is that Dubai has just recovered from a crisis of sorts in the property market. Given that the outlook is a bit gloomy and uncertain, and Dubai’s real estate prices have slumped from their earlier high about 2 years ago, the present conditions are making it feasible for less affluent but serious buyers to show their interest. Over the last year or so, Dubai has transformed from a sellers to a buyers’ market.  

 

Now that the buyers are in the driving seat, prices have slumped to more realistic levels from the rather artificial high of the past. The cost of Dubai real estate has slowly reduced in price, and both sellers and renters have been forced to reconsider the rents and selling prices of Dubai apartments, marina and waterfront properties as well as the high end Dubai real estate deals. This reality check has been necessary because demand for housing has reduced with the movement of expatriates back to their homes abroad. The housing sector has been one of the hardest hit, followed by the financial sector. Lately the stock market has also seen a slump, on the news that Dubai World will not be bailed out of its present financial crisis by the Dubai Government.

 

But let’s see what’s in it for you. With prices being so affordable, there can be no better time for buying prized properties at affordable rates. Whether it is Dubai apartments, marina properties, spring villas or any other part of Dubai real estate, Better Homes can help you get the property of your dreams and make them come true. Try us out today.

Dubai is well-known for the development in the sector of real estate in UAE. The ground-breaking technologies and concepts applied for the development of the city is remarkable. Therefore Investment in Dubai real estate is believed to be safer and most profitable way to double your money even at this moment of economic  problems hovering all over the world.

Reason behind the expansion in Dubai property sector is the changes in laws and provision of flexibility for foreign investors provided by the government, which permits foreigners to buy, rent and sell properties in Dubai. Many real estate development organizations are offering resident visa for those who buy real estate from them. Several multinational organizations are currently establishing their offices in Dubai, which made Dubai a first-rate work market for professionals and skilled workers around the globe. More professionals are fascinated towards Dubai for the reason that the city provides attractive high salary. This phenomenon has created enormous demand for accommodation and office spaces. Especially Dubai apartments are very famous among the young and lively professionals and villas in Dubai are the hot choice of relatively affluent class.  Laws in Dubai related to property are very understandable and formalities are minimum as compared to other countries.

With the continuous and rapid surge in Dubai’s population, a substantial proportion of which consists of expats and temporary residents living in Dubai for employment reasons, the question of buying or renting a residential property in Dubai is the talk of the day. Both the potential tenants and home buyers may be troubled by the question. But still reports on Dubai real estate say that the changing picture of global financial markets shouldn’t deter the locals from buying Dubai property if their plan is to stay there over the couple of years. As for those who plan to stay in Dubai for more than five years, buying a property can prove to be the wisest decision they ever made given the prices of Dubai property climbing higher and higher with each passing year.
Dubai has also emerged as shopper’s ecstasy due to its open port policy with little import duties and superb logistic facilities. Dubai has a world class facility for conferences and exhibitions; it hosts many international conferences and exhibitions. The Real estate sector in Dubai is experiencing immense activity in the form of investments from public and private organizations which include worlds, largest amusement park, tallest building and largest man made islands etc. Dubai real estate sector is expanding day-by-day to the ground breaking levels by introducing more modern and ground breaking projects.

Property investment in UAE, especially Dubai, is sure to yield heavy returns for the investors. Seeing the current property trend, in which limited supplies fail to fully meet the burgeoning demand, it’s easy to deduce that the time is ripe for the foreigners to invest in the UAE. If you choose to buy a freehold property in Dubai, you’ll enjoy many advantages as a foreign investor. You’ll have the power to sell or rent your property as per your desire. Due to a huge influx of expatriate and temporary residents in Dubai, the demand for short-term rentals is continually shooting higher offering yields around ten percent. The good news for the lenders is that no taxes on income, including that acquired from renting property, are levied in Dubai.

Dubai property is the hottest thing on the international property market at the moment. In just over 30 years, Dubai has transformed itself from a small fishing village and port into a sprawling and bustling cosmopolitan city. This transformation can be attributed to the mega ready now and off-plan real estate property developments and projects in the Dubai property market. According to recent estimates, billions of dollars have been pumped into projects currently under construction in Dubai property, with even more investment used for projects in the development stages.

The Dubai property market attracted worldwide attention in May 2002, when the Government of Dubai issued a law legalizing foreign ownership of Dubai properties in select areas in the city. The Burj Dubai expected to be the tallest building in the world, The Palm, and The World islands are only some of the iconic developments in Dubai Property. This site will help you learn more about the Emirate of Dubai and its stunning property developments.

Dubai property is deemed as an excellent investment opportunity given the current strength of its property market. Whether buying property as an investment, a holiday home, or a second home, Dubai property is the right choice to make. With an ever increasing population and a growing GDP, thousands of residents fly in each month to make Dubai their home.

Whether you want to buy, sell, or lease a Dubai property, you are almost guaranteed a return on your investment. When in the market for Dubai property, buyers are spoilt for choice. There is a wide variety of property types available, from city apartments in soaring skyscrapers, luxurious Dubai villas in the suburbs, or even beach side homes. This way, Dubai property truly caters to every individual’s lifestyle preferences.

Acumen finally seems to have entered the minds of UAE’s Federal Government officials who recently have started to consider the issuance of freehold property visas. This news was revealed of late by a top Dubai government official who said that introduction of residence visas on foreign property ownership in various emirates of the UAE was under serious consideration. The DG of Dubai Government’s Finance Department added that the proposal regarding issue of property-linked visas, which was put forward by the Advisory Council of Dubai Government, was under a review.

 

It should be kept in mind that some emirates, acting of their own accord, had already amended their foreign property ownership laws and developed their own freehold visa arrangements. The purpose of the proposed freehold property visas at the federal level is to streamline the process and set a unified guideline for the entire UAE. The Federal Government officials hope that the new law will be introduced soon but no time line for the regulation’s introduction has yet been announced.

 

Issuance of residence visas on the purchase of freehold property was earlier in place when big developers like Nakheel and Emaar helped foreign property buyers to get three-year renewable residence visas. But all of a sudden, the developers stopped facilitating the buyers in this regard which brought the issue of freehold visa into focus.

 

UAE property experts see the proposal as a wise step that could restore buyers’ confidence in this time of crisis and add lure to foreign property investment in the region that presently shows an investment meltdown. Since 2002, major developers in Dubai have successfully used the issuance of residence visas on the purchase of freehold property to attract foreign investment in the emirate’s real estate sector.

 

Dubai’s residential property has always appealed the investor and the common buyer alike. In all the emirates of UAE, especially Dubai, several new residential developents are underway or nearing their completion. Homes in Dubai have never lost their demand and the number of those looking to buy a house in Dubai is continuously on a sharp rise.

 

Hundreds of real estate agents have mushroomed throughout the emirate that offer a wide variety of Dubai homes for sale and urge the buyer to buy property in Dubai with confidence. Villas retain their unique appeal and investors love to buy villas in Dubai. Property owners can also get the best use of their property if they choose to sell property in Dubai or rent it out. If you own a property such as Dubai beach property or Dubai condos, you can get high returns through short term rental. For all other types of residential property, you can get handsome returns through long term rental in Dubai.

 

If enforced, the new law pertaining to the issuance of freehold property visas will surely add to the attraction of property investment in Dubai and other emirates of the UAE which under present circumstances appears to be lackluster.

 

About The Author:

Daniel Marshall is a senior real estate consultant associated with Better Homes, a leading real estate firm in Dubai, UAE. His firm Better Homes offers online Dubai property listings, Apartments in Dubai and in general every aspect of Dubai accommodation.