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15
Dec
Rents on prime office space in Dubai jump 25 per cent

Prime office rents in central Dubai jumped 25 per cent during the 12 months to the end of September as the hard-hit office market continued to recover on the back of demand from banks, developers and airlines.

Grade A office rents rose 8.7 per cent from the second quarter to an average of Dh250 per square foot, according to a report from the property broker Cluttons.

It found that the core business district – the DIFC, Downtown Dubai and Sheikh Zayed Road – remain the most expensive offices in the city, where most Grade A space lets for between Dh220 and Dh280 per sq ft.

“Following the usual summer slowdown, the market has regained its strength, with strong demand persisting for well-located space,” said Steve Morgan, the chief executive of Cluttons Middle East.

“Across the business sectors, the office market remains very active in all segments,” he added. “We have been recording a steady rise in take-up by both existing and new occupiers, with the banking and financial services, real estate and aviation sectors being among the most notable.”

Earlier this year Tecom, which operates Dubai Internet City, Dubai Media City and Dubai Knowledge Village, increased rents and service charges by as much as 43 per cent in some areas.

The increase in demand also meant that rents for secondary office space rose by a staggering 18.2 per cent during the third quarter to stand at Dh130 – a 44 per cent jump on the previous year, Cluttons said.

Office rents plummeted after the global financial crisis, crashing from more than US$100 per sq ft a year in 2008 to less than $38 per sq ft in 2011 as many occupiers disappeared or fled, leaving vast swaths of empty blocks across the city. Many of these blocks remain in multiple ownership and so are unattractive to large office tenants.

Cluttons said that now the office vacancy rate was slowing, demand was starting to return to areas such as Business Bay, where many half-built office blocks remain stalled or not yet started. It said land values in Business Bay had risen from between Dh200 and Dh250 per sq ft in 2012 to about Dh400 per sq ft today.

Property brokers predicted that although Dubai’s housing market could well be hit by the plummeting global oil price, office and industrial rents should remain unaffected.

“Historically, there has been a reasonably strong correlation between the Dubai Financial Market General Index and residential property prices; if this relationship holds, home prices in the emirate should continue to trend down in Q4 2014,” said Harmen De Jong, the director of development consultancy and research at Knight Frank.

 Updated: December 14, 2014 07:36 PM

15
Dec
Emaar to distribute dividend on Dec. 23

Dubai’s Emaar Properties will distribute a special cash dividend of Dh9 billion to shareholders on December 23, 2014, the company said.

The special cash dividend being distributed this month, takes the total dividend distributed in 2014 to Dh17.12 billion.

“This year has been extremely significant for Emaar as we demonstrated our focus on building value for our shareholders. They have consistently stood by us in our growth journey, trusting our strategy to develop our competencies in shopping malls and retail and hospitality and leisure apart from developing iconic projects and expanding to high-growth international markets,” Mohamed Alabbar, Chairman of Emaar Properties, said in a statement.

Earlier this year, the developer has distributed dividends of Dh8 billion including 15 per cent cash dividend, equivalent to about Dh975 million and 10 per cent bonus shares, or 650 million shares, valued at about Dh7.12 billion at Dh10.95 per share, as of April 23, 2014.

The special cash dividend follows the successful IPO and listing of the Emaar Malls Group, the shopping malls and retail business of Emaar Properties, which had recorded total orders of over Dh172 billion. Emaar had committed to distribute the proceeds from the IPO as dividend to shareholders.

Published 

15
Sep
Emaar Launches Residential Project, BLVD Heights, In Downtown Dubai

Dubai developer Emaar Properties has announced the launch of yet another new residential project, BLVD Heights, in Downtown Dubai.

BLVD Heights features two residential towers connected by a podium and includes 280 one to three-bedroom apartments. Lifestyle amenities at the podium include a swimming pool and a gymnasium.

The development will be located close to the Opera District, Dubai’s new upcoming cultural destination, Emaar said in a statement.

Ahmad Al Matrooshi, managing director, Emaar Properties, said: “Demand for stylishly designed apartments in Downtown Dubai continues to be strong, led by its appeal as the world’s most popular lifestyle destination. Homes in BLVD Heights will appeal to investors from around the world providing them a sought-after address in the heart of the city.”

Emaar will launch BLVD Heights simultaneously in four cities – Dubai, Abu Dhabi, Shanghai, Hong Kong and Singapore.

Online registration will begin in the UAE at 10am on September 10, and sales will be held on September 13.

Dubai’s property market has been booming and developers have been launching new projects on a regular basis in the emirate to keep pace with rising demand.

Emaar alone has launched a number of residential developments, including BLVD Crescent in Downtown Dubai, Mulberry at Park Heights in Dubai Hills Estate and various villa communities in Arabian Ranches.

Earlier this week, Deyaar reported that it had sold out all the residential units in the first tower of its recently unveiled Montrose project, while late last month, Damac Properties announced that the first release of houses at its recently revealed master development, AKOYA Oxygen, sold out on the first day of launch.

12
Jun
Dubai clamps down on illegal off-plan sales

Dubai: The Government of Dubai wants property developers to register their holdings and stop selling unregistered properties \"off plan\". Dubai has issued a law making it compulsory for developers to register their properties with the Dubai Lands Department. His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, issued the property registration law just a week after issuing a mortgage law, officials from the Dubai Land Department told Gulf News yesterday. The new law bans property development companies from implementing their projects or selling their properties on the drawing board before actually owning the land on which the projects are to be built. \"We have been getting numerous complaints regarding the ownership of various property developments while many of them were not registered with the Land Department,\" Mohammad Sultan Thani, Assistant Director General of the Dubai Land Department, told Gulf News. \"We expect the new regulation to eliminate such anomalies in the system.\" The new law with 15 articles makes it mandatory for property developers to register their sold properties on the registry, and will invalidate any transactions on unregistered properties. \"The new law aims to help regulate the emirate\'s booming real estate sector and boost investor confidence in the property market,\" said Abu Ali Malek Shroff, Chairman of Shefield Real Estate. \"It is good for developers and investors. It stands as a proof of ownership in the event of any dispute between developers and master developers,\" he said. While the law gives developers a 60-day grace period to register any transactions carried out before the issuance of law, it also gives buyers a 30-day grace period to register their purchased properties. \"I think it\'s a good initiative,\" said Mohammad Bin Brek, CEO of Dubai Properties Group. \" It brings order to the market and adds confidence. People can now make informed decisions about this market.\"

09
Sep
10 most expensive cities to rent property: Where does Dubai rank?

The pace of increase in rentals in Dubai has slowed down substantially over the last one year, making it far cheaper to rent a luxury property here compared with global cities such as London, New York and Hong Kong.

Rents for luxury properties in the emirate fell 0.6 per cent in the first three months of 2015, according to UK-based Knight Frank.

“The fall is in line with trends in the UAE’s wider non-oil economy, which grew at a notably weaker pace in the first quarter of 2015.

“This is likely to have hit confidence, and thus, tenant demand for luxury residential properties in the emirate,” the consultancy said in its Q1 2015 Prime Global Rental Index report.

In the past two years, the emirate witnessed double-digit increases in luxury property rents, topping the list quite often.

The annual rental growth stood at mere 1.4 per cent (March 2014 to March 2015), putting Dubai 8th on the list of 18 cities.

Earlier this week, Numbeo, one of the world's largest database of user-contributed data about cities and countries worldwide, ranked Dubai’s as the 14th most expensive city on its rent index, though its Cost of Living Index gave the emirate 212 position out of the 517 cities it ranks.

In January 2015, Knight Frank said residential rents were likely to fall by five per cent, while property prices would decline by 5 to 10 per cent in 2015.

JLL, a real estate consultancy, also predicted in the same month that Dubai residents could expect rental declines of five per cent this year, with landlords even offering rent-free periods to hold on to tenants.

Tokyo tops the list

According to the global rent index, Tokyo leads the annual rankings for the second consecutive quarter with prime rents up 8.1 per cent annually followed by Cape Town, registering a 8 per cent rise and New York with 5.9 per cent increase.

London and Guangzhou recorded gains of 4 per cent and 2.3 per cent, respectively, making it to the top five.

The index rose by 1.3 per cent in the year to March.

“A year ago, prime rents globally were rising on average by 3.5 per cent per annum but the global average has now slipped to 1.3 per cent,” Kate Everett-Allen, Partner, Residential Research, Knight Frank wrote in the report.

The consultancy states the health of the global economy will determine the future direction of the index with the immediate concern being the Greek crisis.

 

SOURCE:http://www.emirates247.com/news/10-most-expensive-cities-to-rent-property-where-does-dubai-rank-2015-07-08-1.596171

03
Sep
DEYAAR LAUNCH MONTROSE

Deyaar Development PJSC, a customer-focused, trusted and valued developer with in-depth market intelligence and property management expertise, has announced the launch of ‘Montrose’, A project comprises of three towers - a hotel apartment and two residential towers.  

Residential units at Montrose will open for sale on 6 September, 2014 at Deyaar’s new sales and service centre in the Burlington Tower, Business Bay. Interested investors pre-registering online will receive priority consideration.

Deyaar’s latest development addresses the growing demand for residential and well-appointed serviced apartments in Dubai. The company’s strategy to foray into the sector is particularly relevant given Dubai’s projection of attracting more than 20 million visitors during Expo 2020. 

The project is named after the captivating flower ‘Mountain Rose’. Set to take shape in DuBiotech, a life sciences cluster under TECOM Investments and one of Dubai’s greenest corridors at the extension of Umm Suqeim towards Mohammed Bin Zayed Road, the new project is a seven-minute drive from the Mall of the Emirates adjacent to the Miracle Garden and 20 minutes away from Dubai Mall.

Each of the towers comprises three basement levels and 19 stories. The two residential towers   feature 68 one-bedroom, 68 two-bedroom, five three-bedroom and two four-bedroom apartments. The hotel apartment tower has been designed to feature 88 studios, as well as 68 one-bedroom and 24 two-bedroom units.

Saeed Al Qatami, CEO of Deyaar, said: “Montrose is a strategic project for Deyaar and offers an inspired blend of harmonious style and comfortable living. This project will help Deyaar meet the growing demand for exclusive, gated community projects in Dubai. The location for the urban upscale community has been deliberately chosen to appeal to our potential investors and buyers. We are confident the new project will set another benchmark of excellence for Deyaar and reiterate its continued industry leadership.”

Set to combine the best of form and function, residents will enjoy common amenities that include a landscaped garden, an outdoor sitting area, a kids play area and a state-of-the-art gymnasium. Each of the towers will house a rooftop infinity swimming pool and offer a 24-hour security system, as well as an access control system, firefighting and alarm system, central air conditioning and CCTV surveillance. Boasting a health club and a restaurant, the hotel apartment will be equipped to provide high speed internet connectivity.

Al Qatami added: “Individuals looking to invest in Montrose can now pre-register and express their interest. To complement the overall offering, Deyaar is offering flexible payment plans with a minimal down payment as low as five per cent. Our aim is to offer a wider target audience with the possibility of realising their dreams of owning a property in Dubai that is affordable.”

03
Aug
Schon Properties launches Dh465m The Signet in Jebel Ali
By Nadia Saleem, Staff ReporterPublished: 00:01 June 25, 2008Gulf News\r\nDubai: Catering to a new niche market, Schon Properties on Tuesday launched The Signet, a Dh465 million project for commercial and residential use in Downtown Jebel Ali.\r\nSaid to be a new concept of \\\"home-office\\\" in the property development market, the tower will be completed in June 2011, Danial Schon, vice-president of Schon Properties told Gulf News.\r\nRegarding the laws prohibiting offices in a residential tower under normal circumstances, Daniel Schon said, \\\"Jafza is the most open free zone around and we have full authority to carry out this concept,\\\" he told a media roundtable.\r\nDesigned by Mimar Emirates, the project will have 17 floors with a total of 273 units.\r\nThey will comprise 91 one-bedroom apartments to be sold for about Dh1.5 million, 14 two-bedroom apartments for about Dh1.8 million, 80 studios for almost Dh1 million, seven loft home offices for about Dh8 million and 18 home offices for almost Dh3.5 million.\r\nThe residential apartments are priced at about Dh2,400 per square foot, home offices at Dh3,800, and loft offices at about Dh3,100, according to Asher Schon, vice-president.\r\n\\\"The prices are extremely affordable considering there is no other product of this kind on the market,\\\" Asher Schon said.
03
Aug
Newspaper, bank locked in advertisement controversy
By Eudore R. Chand, Our Business EditorPublished: 00:00 March 13, 2002Gulf News\r\nThe ballooning issue of freedom of press regarding Mashreqbank and Al Ittihad newspaper, could turn out to be nothing more than a storm in a tea cup, with senior bank officials maintaining that no advertisements have been withdrawn to pressure the daily.\r\n\r\n\\\"The ad campaign in question covers four advertisements in Al Ittihad of 15x3 size, in black and white, totalling about Dh8,000. How could it be possible for us to pressure a newspaper like Al Ittihad with Dh8,000,\\\" said a bank spokesman.\r\n\r\nThe newspaper yesterday charged that, in anger over a report that Emaar Properties had deposited Dh800 million in the bank, Mashreqbank withdrew the advertisements.\r\n\r\nThe bank spokesperson said the ads in question were withdrawn two days ago to correct a problem in the logo of MasterCard, and not because of any dispute with the newspaper. These were withdrawn from other media too and not just Al Ittihad.\r\n\r\nYesterday, after correcting the mistake, the ads were sent back for insertion to the newspapers, including in Al Ittihad.\r\n\r\nThe spokesman said he had received no communication from the newspaper on the issue.\r\n\r\nEarlier yesterday, the UAE Journalists\\\' Association issued a statement to WAM calling for cordiality, understanding and transparency to govern relationships between the media and the private sector so that it is not affected by personal interests, or the business of advertising.\r\n\r\nThe association said it hoped that a newspaper would not give in to advertising pressure. Material interests should not dictate the editorial policy of a newspaper or a media establishment, it said.\r\n\r\nIt called for constructive dialogue and pointed out that withdrawing advertisements from a newspaper was an attempt to weaken the authority and the role of the UAE press, and to prevent it from undertaking its mission and duties.\r\n\r\nThe association thanked the private sector, and appealed for cooperation with the press for the benefit of public interest. It stressed the importance of freedom of opinion and the independence of the journalists, away from pressure exercised by personal interest. \r\n\r\nIt called on the media to exercise self-restraint and not to give in to these pressures out of their belief in freedom of speech and in defence of it. \r\n\r\nAl Ittihad claimed that Mashreqbank said on Monday it was withdrawing all advertising from the Arabic daily after the newspaper published a story linking the bank to Emaar Properties, which was defended by Abdul Aziz Al Ghurair, Mashreqbank CEO and Emaar board member.\r\n\r\nAccording to Al Ittihad yesterday, the decision to withdraw advertising by Mashreqbank was meant to punish the newspaper because it published a news story revealing that Emaar Properties had deposited Dh800 million in Mashreqbank. \r\n\r\nThe news was based on the financial statements of Emaar Properties, according to the newspaper.
03
Aug
Hydra Properties offers payment break to Hydra Village investors
Abu Dhabi: Real estate developer Hydra Properties has said it is taking a slew of measures to boost investor confidence at its Dh2 billion Hydra Village development in the capital, which includes offering a payment break to customers. \"We have carefully listened to the concerns voiced by our customers and our aim is to address these issues with immediate effect. We are committed to initiate an action plan to support our investors and to demonstrate our understanding of their issues,\" Dr Sulaiman Al Fahim, CEO of Hydra Properties, said in a news conference. The payment break facility will be available to customers who have been making payments on time. \"These customers of Hydra Village Abu Dhabi will not need to make payments until the beginning of 2010,\" said Hydra Properties. Al Fahim, however, ruled out the prospect of Hydra Properties buying back units from customers. \"We have no plan to buy back properties. Our prices are more than 10 per cent below the market price,\" he said. Hydra Properties said a detailed construction progress plan for the Hydra Village project has been put in place as part of the company\'s commitment to investors. Hydra Village Abu Dhabi project is scheduled to be completed in 2011. Ahmad Khalil, Hydra Properties commercial director said the average price is Dh750 per square foot for the entire project. \"Our prices are very reasonable and matching market realities,\" said Khalil. Reem Finance is financing the Hydra Village Abu Dhabi project, which comprises of residential villas.

Rents on prime office space in Dubai jump 25 per cent

Grade A office rents in Dubai rose 8.7 per cent from the second quarter to an average of Dh250 per square foot. Satish Kumar / The National

Prime office rents in central Dubai jumped 25 per cent during the 12 months to the end of September as the hard-hit office market continued to recover on the back of demand from banks, developers and airlines.

Grade A office rents rose 8.7 per cent from the second quarter to an average of Dh250 per square foot, according to a report from the property broker Cluttons.

It found that the core business district – the DIFC, Downtown Dubai and Sheikh Zayed Road – remain the most expensive offices in the city, where most Grade A space lets for between Dh220 and Dh280 per sq ft.

“Following the usual summer slowdown, the market has regained its strength, with strong demand persisting for well-located space,” said Steve Morgan, the chief executive of Cluttons Middle East.

“Across the business sectors, the office market remains very active in all segments,” he added. “We have been recording a steady rise in take-up by both existing and new occupiers, with the banking and financial services, real estate and aviation sectors being among the most notable.”

Earlier this year Tecom, which operates Dubai Internet City, Dubai Media City and Dubai Knowledge Village, increased rents and service charges by as much as 43 per cent in some areas.

The increase in demand also meant that rents for secondary office space rose by a staggering 18.2 per cent during the third quarter to stand at Dh130 – a 44 per cent jump on the previous year, Cluttons said.

Office rents plummeted after the global financial crisis, crashing from more than US$100 per sq ft a year in 2008 to less than $38 per sq ft in 2011 as many occupiers disappeared or fled, leaving vast swaths of empty blocks across the city. Many of these blocks remain in multiple ownership and so are unattractive to large office tenants.

Cluttons said that now the office vacancy rate was slowing, demand was starting to return to areas such as Business Bay, where many half-built office blocks remain stalled or not yet started. It said land values in Business Bay had risen from between Dh200 and Dh250 per sq ft in 2012 to about Dh400 per sq ft today.

Property brokers predicted that although Dubai’s housing market could well be hit by the plummeting global oil price, office and industrial rents should remain unaffected.

“Historically, there has been a reasonably strong correlation between the Dubai Financial Market General Index and residential property prices; if this relationship holds, home prices in the emirate should continue to trend down in Q4 2014,” said Harmen De Jong, the director of development consultancy and research at Knight Frank.

 Updated: December 14, 2014 07:36 PM

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