Dubai Property Market - Rising Trends

Dubai Property Market is going through a phase where a number of changes are taking place in the commercial sector.

One of the up-and-coming trends in the Dubai Commercial Property market is the alteration of warehouse space to office premises. Companies that entail large open plain spaces, such as advertising or marketing companies have been seen to rent warehouse space and easily alter it into well-organized office space. This offers a cost effective solution for businesses that call for to be close to the business centre but may not wish to pay the premium rates of prime location office space. Warehouse rental rates are appropriate for office alterations as they ebb between 40-65AED per sq. ft. Warehouse space rent solely used for storage purposes averages 28-35AED per sq. ft. Whereas rents in the Central Business District (CBD) may be 225-250AED per sq. ft.

The Dubai Property market is stiff and therefore the concept of Split Offices has come into being. Many professional services firms, faced with the prospect of predominantly high rents in prime locations have a propensity to lease a small space suitable for client meetings in the Central Business District so as to show off an address on a esteemed location such as e.g. Sheikh Zayed Road, and shift their operations to a secondary location where rents may be more reasonably priced e.g. Garhoud, thus successfully saving on enormous expenses.

Thus, supply of the Dubai Real Estate market is shaping up to meet the property demands in Dubai.

Indian Real Estate: Getting More Transparent

In order, to protect buyer interests and encourage foreign direct investment (FDI), the Ministry of Housing may make it mandatory for real estate developers to compulsorily insure land title deeds before selling the property. This will ensure that in case of any litigation later on, title deed insuring will help mitigate a buyer's financial risk.

"It is found that many foreign investors have expressed apprehension investing in the country due to lack of transparency in title deeds. Fearing various claimants for the same property, followed by lengthy court battles, foreign investors shy away from investing in real estate. Compulsory insurance of land deeds would address the issue to a great extent and help both domestic, as well as, foreign buyers," according to a senior official in the Cabinet.

Although, there is nothing new about the clause, mandatory land title insurance already being practiced in USA and some European countries, it could be a first for India. "It is an insurance against loss from defects in title. It is meant to protect a property owner's or lender's financial interest in property against loss due to title defects, liens or other matters," explains S.P. Gupta, Haryana Urban Development Authority (HUDA) administrator.

Not only, will the new legislation provide investors with a clear title, it will also provide financial security, as insurance companies will have undertaken due diligence before proceeding to insure the property. As is their norm, insurance firms get their network to track relevant property records, and ascertain properties with fictitious ownership titles do not get insured.

As well, insuring property title deeds will also certify the type of land that is being insured i.e. residential or agricultural. A good way of ensuring, no one is able to dub agricultural land as commercial land, in order to dupe investors.

Clearly, perhaps, globalisation does hold the proverbial silver lining for Indians. Eager to attract investment, the government is forced to legislate new Acts to bring greater transparency in business transactions, whether governmental or private, to keep the FDI flowing in. And, cleaning up the red tape, bureaucracy and other babu type of shenanigans, it is to be hoped India will continue its upward climb on the global corruption index!


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The Future Of Real Estate Marketing

The commercial real estate has been on a rise for the last few years. After the dot com crash, commercial real estate revenues declined, vacancies rose, and rents decreased. But since late 2001, revenues have steadily increased. The investors put more and more money into the industry. The Federal Reserve flooded the industry with money through low interest rates. The investors put money into the market because of its high returns. It is predicted that real estate market will remain strong, but it will not be as great as it has been. The study shows, “More than 10 % of bank’s assets are in commercial real estate. The stead job growth and U.S. demographic trends is a good sign of apartment rentals. Apartment vacancies are decreasing. However, property transactions overall have already slowed this year and buyers have been holding out for better prices. It is rational and a sign that some of the effects of higher interest rates are percolating through the system.. Nevertheless, the real estate industry growth expects to be in 2.5 % to 3.5% range over the next year.

The word we live in now is more global than it was before and the capital can be rapidly pulled out of markets because of unexpected events that happen ten thousands of miles away. That makes real estate industry status as a favored child more precarious.

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