Although this rise doesn’t matches the anticipations of local realtors yet certain experts opine that the market activity rise is capable of sprinkling new life in to the country’s real estate.

Many of the properties like houses, apartments and villas in Dubai, did not fair well in the previous year. Costs of properties on rent and sale have dropped for 3 continuous years. Year 2011 was pretty good for most of the Dubai properties. And, the 20% rise in transactions is being attributed the cause of the improved condition of Dubai properties.

Experts see this change as the result of the numerous efforts by the government. They opine that it is the sincere and number of initiatives taken by the government with regards to improving real estate’s condition. It is an obvious pledge of Dubai’s government to make the local realty market stand on its own feet once again. And, to make it a reality, government has adopted numerous ways that are respected by every included party.

These steps taken by the government have borne fruits ion the form of market gaining back trust and as a result investors are waiting to jump in the investment market.

To see complete recuperation in real estate of Dubai, people might have to wait for quite some time. As the government has also taken its stand, this state of complete recuperation is not a questionable act but also when it happen is not decided.

RERA is a regularity body of the Land Department of the Government to keep record, assuring the rights related to sale and purchase of land. The entire training will be divided into three stages. First one is “experimental, educational and optional.” Second comes with training and co-ordination and the third involves the right the Charter and is very much compulsory.

This training is aiming at the very target of educating the 2.084 real estate brokers working in 840 real estate offices in Dubai. The authority is confirming that it will enhance the quality, skill, expertise of these vast numbers of brokers working in the real estate industry. The CEO of RERA has shed some light on their planning for these three staged programme.

He added that work culture is lacking mostly in the labor market of Dubai. Especially, the real estate industry is suffering from these problems the most. Another is reason behind training these people are really evident that the Government body wants to train everybody to make the Charter a reality of most unorganized but highest revenue generating industry of the country.

The government wants to make the brokers knowledgeable and well aware to make sure that real estate industry is working in a better, ethical and proficient way. They are reportedly trying hard to bring the country up to International level.

Experts say that this training decision was taken from the inception of the RERA. Now, it’s really a burning question to update real estate professional to a higher level.

Tayseer will help financing through local banks while Tanmia will target getting more investments through rejuvenating the stalled projects. The latter is an initiative by Real Estate Investment, Promotion and Management Center—REIPMC.

Tayseer will help the buyers of many unqualified projects with financing. The qualification process is a long process that involves identification of a project by the DLD.

The projects are then subject to be qualified by the government. Government has its own criterion for qualification like it considers only those projects, 60 percent of which is already sold at the time of identification.

It should further be 60 percent complete in its construction process; rest construction be going on at the scheduled pace in conformity with the Real Estate Regulatory Agency approvals. There are also other factors like a reliable contractor who could guarantee a timely completion of the project.

The government backs local banks in financing the purchasers of the property. The Dubai Land Department (DLD) signs deal with the local banks to this effect. The purpose of this financial backing is to ultimately get the projects accomplished timely.

Seven local banks have signed agreements in this context so far. As many as 40 projects have been qualified under the initiative and have been registered as phase-one initiative. Some 215 investors have taken benefit from this scheme so far.

There are some 26 projects that are being considered for approval. The projects are illustrative of what thrust the government has been giving to the repairing of the losses, the Dubai real estate has suffered since the global financial crisis struckDubai adversely.

Though the procedures involved in the Tayseer and Tamnia initiatives are long, the long term effect of these well-stressed schemes is expected to boost the market soon.

It is also expected to help the market fight the challenges brought about by depreciation of rupee against dollar. The latest developments in this regard indicate NRIs (Non Resident Indians) may seek investment in their homeland as the properties there will cost less to them.

With the coming up of this system, registration is possible in 45 minutes. According to the senior official of this website, Mohammed Sultan Thani, Assistant Director-General of Land Department said two or three registrations have already been done. Now the notices are being sent to registered brokers who can use the system.

As the agents register on this system and enter the transaction details, they will be given a set time. This will allow them to save time and at the same complete the entire process at a much faster rate. Presently the system is not available for individuals as they will have to take an appointment and be present at the given time to complete the transaction.

It has been reported that apartment and villa rent in Dubai will remain steady till 2012. The only decline can be seen in poor and low quality buildings in certain areas. In fact the properties in Dubai can only see some marginal declines in 2012 with 1300 villas and 10,700 new apartments entering the market. According to industry experts, Dubai real estate market is expected to get buyers from other Middle East countries.

This is due to uncertain economy and local unrest that has somehow tainted Dubai’s safe haven retreat. During the 4th quarter of this year, Dubai real estate market was quite stable. This was due to increased transactions that showed signs of recovery in Gulf property sector. Due to this there has been fast rise in property buying and long list of pending registrations.

On the sidelines of the Arabian Business Achievement Awards, Alabbar said, “I believe overall prices have stabilized; I think they are still holding reasonable value to, say, two years ago, so I believe the worst is behind us”

Important to mention here that there was a steep rise in the real Estate prices between 2005 and 2008. It is often regarded as the grand period in the history of Dubai real estate.

This soaring of prices followed the historic decree from Prince General Sheikh Mohammed bin Rashid Al Maktoum, in May 2002,which permitted the foreign direct investment in Dubai real estate.

The investors from round the globe showed immense response right from the onset that led to a boom and reached its peak in 2008.

As per the data released by Dubai Land Department (DLD), the number of deals recorded in the current year is nearly 1603, which still around 70% less than the 2008.

But there has been a considerable improvement as compared to 2009 when the economic recession led to the drastic fall in the Dubai Real Estate deals.

With the improvement and stability in the prices, conditions werelookingbetter but the expected 33000 homes entering the market by 2012 may cause the fall in the prices of the sales, say the analysts.This would automatically trigger the fall in the rentals as well.

Adding to the fears are the fresh global financial concerns and debt crises In UK which are threatening. It is a big worry for investors round the globe.

No one is sure what will happen but the recent developments gave the Dubai real estate something to the cheer about and fresh entry of houses will still keep everyone, concerned,interested.

A recent Jones Lang LaSalle (JLL) report has suggested that Dubai airport is now the fourth busiest airport in the world.Influx of more tourists due to the security reasons in the rest of the region has led to a substantial rise in the prices of residential buildings and rentals which have seen a great demand.

Hotel sector which has ever been unstable is the major benefiter with an average inhabitance of 78% during the last 10 months.

There is no doubt that hotel, residential and even the retail sector has greatly benefitted during the last 9 months but according to Chief Executive of JLL, Alan Robertson, much more needs to be done to convert this into a broader economic activity.

Dubai Real Estate sectors are at the recovery stage and, no doubt, the situation is greatly improving but some more steps need to be taken for a sustainable recovery.

According Robertson, UAE will continue to get long term benefits if there is political and economic stability.

This time the villa market is on rise and is performing much better than apartment sector. The former recorded a rise of 1.58 while the prices of latter dropped by 0.78 in the same time gap.

The price of apartment has fallen in Dubai in consecutive six months while the stocks of villa showed a consistent rise since April. This time the rental flats have fared well which have showed an increase in 0.85 in the price paid by tenants. This way the houses have experienced a hike of 0.51 percent.

A poll carried out by Reuters seeks opinions from experts about the prospects of Dubai real estate industry. The respondents have suggested that the property values in Dubai will fall by further ten percent.

This is due to the issues related to oversupply, lack of investors and influence of UK debt market. It is predicted that real estate market of Emirates will increase by 37 percent.

It is on its way to recovery but on an average the property prices will further drop by ten percent. Till then, the recovery of Middle East real estate industry will be on its slow recovery.

The charter will be finalized only after feeling the responses from the industry after it would be well known to all in the forthcoming months. In the first phase, companies working in the real estate sector will be provided with the details about the charter.

The year 2012 will be devoted for the real-estate sector to take the required steps to bring their properties and operations in conformity with the new regulations. But the new rules will be strictly in effect from January 2013.

Whole of the exercise is culmination of the all-round measures taken in response to the over 60 percent fall in the prices of the property in the UAE’s market. The charter would expectedly bring in transparency in the transactions in the sector and boost up their performance. Further it is expected to escalate the foreign investments in this sector.

The project will in a sense bind the developers to give details about the status of their real estate projects from time to time. Included in their transparency obligations will be their financial status.

Director General of DLL, Sultan Butti Bin Mejren said that they had carefully taken care of corporate governance practices while drafting the new charter. He further said that for further survey and improvements in the draft a separate committee will be formed that will comprise of worthy professionals.

‘The lack of an established culture of governance in the market in general and in the real estate market in particular, necessitates the application of the charter on three phases,’ said Marwan bin Ghalita, CEO of RERA, which is the regulating agency of Dubai’s real estate.

The prime focus is on Dubai hotels as the hotel industry continues to be at its peak Dubai’s real estate arena.

According to Jane Lang LaSalle (JLL), “as Dubai is going to be one of the most favorite destinations of numbers of tourists, the hotel sector is trying to improve. Revenue Per Available Room (RevPAR) is taking as a hot trend.”

Looking at the rental apartments, the villas in upscale locations are performing better than residential apartments both in terms of sale prices and rentals whereas apartment rentals and prices have been constant for many years.

The hotel industry is gaining profit in the United Arab Emirates. Also, retail sector has received a positive response over the past nine months. It is said that “Dubai becomes a sought after destinations of many tourists as many of them are rescheduling their holidays to this amazing destination to enjoy the city luxurious lifestyle.”

Meanwhile, Cityscape Global 2011event for the real estate industry is going to take place today as the event is ready to celebrate its 10^th year success in Dubai.

Around 150 will take place and 50 countries will take part besides Dubai regional property dealers.

Talking on office market, the sector is boom. According to Jane (JLL), people are choosier in terms of office market and are keen to make Dubai their favorite office hub.

]]> http://www.dubai-marina.com/news/improving-real-estate-trend-dubai/feed/ 1 http://www.dubai-marina.com/news/property-prices-dubai-increase-0-5-percent-july-august/ http://www.dubai-marina.com/news/property-prices-dubai-increase-0-5-percent-july-august/#comments Mon, 12 Sep 2011 12:47:59 +0000 Sunita http://www.dubai-marina.com/?p=595 Real estate sector is on boom in many countries. It is a strong sign that the sector is regaining after the collapse of housing sector in US.

As per reports, in August 0.5 percent increase in Dubai property was witnessed compared to July. It signifies growing maturing in real estate segment of the country compared to established ones including Paris, London or NewYork.

As there are variations in the demand of properties in different areas, the prices haven’t risen in a straight and uniform direction since past 3 years. There are some hot spots in the country like Dubai Marina which have played a good role in bucking up the prices.

Redin, a World leader in real estate information, has stated that property prices have increased across the board. Even the rise was noticed in the month which usually sees a decline because of the decline in tourism.

Increase in property prices shows that the country is recovering fast. There are hopes that the economy will now grow at a faster pace. It will fare well compared to European majors.

This news will now catch the attention of investors from various countries.