Property Market in Post Recession World

In the secondary market, where properties are most vulnerable to the economic downturn because they are bought and sold before construction is completed, prices had fallen by 15 per cent to as much as 50 per cent in certain areas, brokers said.

“Most of the people in Abu Dhabi are offering properties at their original price now,” said Amer Saeed, a property consultant at the Abu Dhabi branch of the broker Re/Max.

“It ranges now between Dh1,100 (US$299) and Dh1,200 per square foot on Al Reem Island and Al Raha Beach, which are the main areas where foreigners can buy.

“But some people are selling below the original price. You can find a property for Dh1,000 per sq ft.”

The global economic crisis triggered a sharp reversal in property markets all over the world. Gulf countries, where prices had been rising rapidly last year, were particularly affected.

While the Abu Dhabi market has softened, it has fared better than other parts of the Gulf. In Dubai, apartment prices fell by 39 per cent in the first quarter of this year from the last quarter of last year, although they are stabilising in the most established communities, the consulting firm Asteco said.

Some analysts point to Abu Dhabi as among the region’s most promising markets. Investor sentiment is rising, partly because the level of speculative investment in the region’s markets has subsided, according to Jones Lang LaSalle’s Second Investor Sentiment Survey, a study of property professionals’ market views.

Abu Dhabi would be the stand-out market for property investors, said the report conducted in association with Cityscape.

“That investors are returning to investment fundamentals such as focusing on yield is a welcome finding, as is the suggestion that there is, at last, an end in sight to the current turmoil,” said Ian Ohan, the head of Middle East and North Africa (MENA) investment transactions at Jones Lang LaSalle, said.

“With Abu Dhabi and Saudi Arabia suggested as the hot spots for investors in the coming years, the MENA region looks set to grow in significance even further.”

The price declines in Abu Dhabi’s secondary market had helped spur sales activity, brokers said, with the number of transactions climbing last month compared with February.

Rental hikes capped at 20%

The maximum a landlord can hike rent is 20 per cent, according to an important clause in the new decree issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and ruler of Dubai.
Using a series of "mini rent caps" through a rent slab, the index prevents rent from rising too high.

For example, if the rent is 36 per cent to 45 per cent below the average market rate for properties with similar specifications in similar areas, the rent can only be increased by a maximum of 10 per cent, according to the decree.

If the rent is equal to or up to 25 per cent less than the average market rate for properties with similar specifications in similar areas, then there will be no increase in rent.

However, it is worth noting that the index was compiled using figures from the second half of 2008, and since then, rents have dropped much further. The index states that the average rent for a two-bed apartment in Mirdif falls somewhere between Dh120,000 to Dh130,000.

But currently, tenants in two-bed apartments in Mirdif are paying around Dh90,000.
Marwan Bin Galita, chief executive of Real Estate Regulatory Authority (Rera) has been very clear when saying the rental index should only be used as a guideline, with plans to update it every six months. With the decree now in effect, however, it is even more important that Rera keeps a closer eye on rental rates across Dubai, especially as they are set to fall further in 2009.

For this reason, some industry experts say the rental index should be updated regularly.

"It may be wise to update the rental index on a weekly basis as the market rates are still fluctuating - a rent cap at this stage may be slightly premature," Ryan Mahoney, managing director of Better Homes, added.

Rera issued a statement yesterday saying there will be no increase in rent for new contracts signed in 2008 for residential and non-residential properties.

However, the rent will neither have increased nor decreased as it is a new contract.
"There will be absolutely no increase in property rent values for new residential or non-residential tenancy contracts signed for the first time in 2008. Any contract that was renewed in 2008 is subject to increase," Rera said in a statement to media.
Interestingly, according to Rera's website, 3,400 people, around 85.8 per cent of those polled, say there should be a rent cap law in Dubai.

• 27,000 homes delivered in Dubai in 2008
• 32,000 homes to be delivered in Dubai this year
• 30,000 families moved into freehold homes in Dubai so far
• 1.6m Dubai population in 2008

Source: Gulf News

Rental hikes capped at 20%

The maximum a landlord can hike rent is 20 per cent, according to an important clause in the new decree issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and ruler of Dubai.
Using a series of "mini rent caps" through a rent slab, the index prevents rent from rising too high.
For example, if the rent is 36 per cent to 45 per cent below the average market rate for properties with similar specifications in similar areas, the rent can only be increased by a maximum of 10 per cent, according to the decree.
If the rent is equal to or up to 25 per cent less than the average market rate for properties with similar specifications in similar areas, then there will be no increase in rent.
However, it is worth noting that the index was compiled using figures from the second half of 2008, and since then, rents have dropped much further. The index states that the average rent for a two-bed apartment in Mirdif falls somewhere between Dh120,000 to Dh130,000.
But currently, tenants in two-bed apartments in Mirdif are paying around Dh90,000.
Marwan Bin Galita, chief executive of Real Estate Regulatory Authority (Rera) has been very clear when saying the rental index should only be used as a guideline, with plans to update it every six months. With the decree now in effect, however, it is even more important that Rera keeps a closer eye on rental rates across Dubai, especially as they are set to fall further in 2009.
For this reason, some industry experts say the rental index should be updated regularly.
"It may be wise to update the rental index on a weekly basis as the market rates are still fluctuating - a rent cap at this stage may be slightly premature," Ryan Mahoney, managing director of Better Homes, added.
Rera issued a statement yesterday saying there will be no increase in rent for new contracts signed in 2008 for residential and non-residential properties.
However, the rent will neither have increased nor decreased as it is a new contract.
"There will be absolutely no increase in property rent values for new residential or non-residential tenancy contracts signed for the first time in 2008. Any contract that was renewed in 2008 is subject to increase," Rera said in a statement to media.
Interestingly, according to Rera's website, 3,400 people, around 85.8 per cent of those polled, say there should be a rent cap law in Dubai.
• 27,000 homes delivered in Dubai in 2008
• 32,000 homes to be delivered in Dubai this year
• 30,000 families moved into freehold homes in Dubai so far
• 1.6m Dubai population in 2008

Source: Gulf News

To Buy or Not To Buy? – Dubai Property Concerns

It’s not a baffling question for just the permanent residents of Dubai. 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 ‘now’ can prove to be the wisest decision they ever made given the prices of Dubai real estate climbing higher and higher with each passing year.

But the option of buying real estate in Dubai doesn’t suit everyone. Most of the younger expatriates are not financially sound, so in order to qualify for a mortgage they need stable jobs with sufficient salary. There’s no certain criterion for the assessment of one’s financial situation – it’s rather a self-assessment process.

Borrowing can be a not-so-good idea if you are in Dubai for a longer period than five years. A wise act should then be to sit and calculate the total rent you’ll pay during your long-term stay and compare it with the current price of the mortgage. At the end of the day, you may find out buying to be a far wiser choice than renting.

The Trust of investors in Dubai real estate

In the last couple of years, the property market of Dubai has been hugely profitable and firm enough to get international and local investors’ trust and confidence on account of the execution of laws focused at assuring attentions of virtually anyone connected to the real estate business. This is one of the major causes why people from all over the world are coming in Dubai to invest in property market. The spread of international chains and business that are setting up all over Dubai make the emirate a true symbol of a global village.

Dubai Residential Property - Apartments in Dubai

As mentioned previously, due to the influx of foreign nationals into Dubai over the course of the past decade, the demand for residential property is on the increase. Many foreign nationals have turned to purchasing and owing apartments for residential purposes.

Generally speaking, even rather luxurious apartments can be purchased in Dubai for comparatively reasonably prices. For example, a person generally can make the purchase of an apartment in Dubai that would cost considerably more for a comparable unit in many other countries around the world.

Make Your Property Safer When Renting It Out. How? Read Below

By: Kevin Cox

When renting out properties there are some things you should do to keep your property safe. One thing you should do to make your property safer when renting it out is clean up any snow or ice on the property. If your property is in a colder climate where it snows it is recommended that you get the walkway and the sidewalk cleaned up. The reason for this is if someone falls on your property and gets hurt you can get sued. You can even end up losing the property.
Another thing you should do to make your property safer when renting it out is make sure that every floor in your properties have a smoke detector. When it comes to smoke detectors it is important to replace the batteries every six months. The last thing you want is to have a fire and no one is warned on time because of dead batteries in the smoke detectors. Another thing when it comes to fires is if someone gets hurt and it is proven that it could be prevented you can be liable for all damages.
One last thing you should do to make your property safer when renting it out is to listen to the people who you’re renting out the property to. If something needs to be fixed it is recommended that you get it fixed as fast as possible. Some problems if left unchecked can escalate and become worst than it was in the beginning. It is wise to listen to the people you are renting the property out to since they are living there. There is a good chance they might have some good incite and information about the property. Keeping your property safe not only can save you time, money and stress it can also save lives.

A good web site where you can see more information on topics like this is Real Estate Facts which is highly recommended. Another article witch is also recommended is The Advantages And Disadvantages Of Refinancing Thank you and enjoy.

Contracts You Use When Investing In Real Estate?

When investing in real estate there is a lot of contracts you will have to use. Some contracts you use when you buy or sell real estate the conventional way. Others you use when you buy or sell unconventionally. One contract you can use when you’re investing in real estate is a land contract. A land contract is a contract that lets a buyer have temporary control of a property. Usually the seller will get a small monthly payments and set benchmarks to the buyer to accomplish. The buyer will also usually put up something as collateral. If the benchmarks is not accomplish on time or if the monthly payments is not made the seller can terminate the contract. At the end of the contract it is up to the buyer to decide if to buy the property or not.

Another contract you can use when investing in real estate is a promissory note. A promissory note is a contract a seller and a buyer uses when they are using the option of seller finance. Seller finance is when the buyer pays the seller directly instead of going to a bank for the money. In most cases there is a balloon payment. A balloon payment is when the buyer after paying the seller directly for a certain amount of time, pays off the promissory note in one lump sum. The buyer usually goes to the bank and gets a mortgage to pay off the seller. Some things a promissory note should have on it are the monthly payments, interest rates, penalties, and when is the balloon payment due if any.

One last contract you can use when investing in real estate is a lease. A lease is used when renting out properties. The things a lease should have on it are rules, penalties, rent amount, when rent is due and when rent is late. When investing in real estate contracts are a way of life. If you use the information you read here you will have some idea what these contracts are and what they should have on them.

which is highly recommended. You can also A good web site where you can see more information on topics like this is Real Estate FactsAdd This Article to your web site or blog. Thank you and enjoy.

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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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