Seddiqi Launches First Branded Rolex Tower in DIFC

Seddiqi & Sons Investment, the real estate arm of the UAE's leading timepiece retailer, Ahmed Seddiqi & SonsAhmed Seddiqi & Sons announced the launch of the Rolex Tower, the first of its kind in the Middle East and the only branded Rolex Tower globally not owned and managed by the watchmaker itself.

Created by Skidmore, Owings and Merrill, the architects behind the Burj Khalifa and Canary Wharf, the Rolex Tower in Dubai is to offer 25 floors of two and three bedroom apartments including two luxurious penthouses, as well as 31 levels of premium commercial space and a ground floor for high end retail offerings. The Rolex Tower's design, finish, panoramic views and bespoke services are the hallmarks of its status as the premiere address in the heart of the city's business district.

Mr Abdul Hamied Seddiqi vice chairman of Ahmed Seddiqi & Sons said that "This venture marks Rolex's first endorsement of the Middle East's property sector and to be entrusted with the Rolex brand is a testament to the company's collaboration with Ahmed Seddiqi & Sons over the last fifty years. The launch of the Rolex Tower demonstrates our conviction that quality and service are among the most vital considerations whether buying a watch, finding a home or building a business."

The materials and expertise deployed in constructing the Rolex Tower underscore the premium nature of the building with 40,000 meters of aluminum and glass being used for the exterior, 3385 tonnes of steel and 29,150 cubic metrics of concrete underpinning all baths and public areas. Residents can enjoy IP TV and video on demand complemented by high speed wireless access while businesses in the Rolex Tower will make use of keyless entry controlled floor access and secure generous onsite parking.

Sourced from www.thenational.ae

Dubai Holding Unit Delays Repayment of $555 Million Loan for Second Time

Dubai Holding Commercial Operations Group LLC, a real estate and hospitality group owned by the emirate’s ruler, said it received an extension on a $555 million revolving credit line until Nov. 30.

All lenders to Dubai Holding Commercial agreed to extend the facility, the company said in a statement to Nasdaq Dubai today. The facility is extended under “commercial terms,” it said.

Dubai Holding Commercial in July received a two-month extension on the loan at “commercial terms,” the company said then.

Source: Bloomberg

More gloom for Dubai real estate market as second property index shows price falls in second quarter

The oversupply of residential property in Dubai is predicted to peak in 2012 with vacancies of between 25 and 28%, according to the latest real estate report by Landmark Advisory.
At the same time distressed sales are leading to accelerates price declines, according to the Dubai and Abu Dhabi Real Estate Report for the third quarter of 2010 from the consultancy.

‘As prices are falling faster than rents, this is pushing up yields,’ said Jesse Downs, director of research and advisory services at Landmark Advisory.

‘This is positive for the market as higher yields are required to attract investors wary of the weak market fundamentals and perceived downside risk. At the moment, financing remains limited, which means investors continue to dictate market trends,’ she explained.

The report found that sale volumes slowed in the second quarter, compared to the first. Prices for villas dropped by 5% and apartments fell by 5.8% as a result of limited buyers and tighter lending restrictions.

In neighbouring Abu Dhabi quality issues could lead to a rapid reshuffling of the market as the new higher quality supply is delivered, the report also points out. Downs expects only 20% of high end properties in the pipeline will meet the standard, which will have a knock on effect on prices for mid-range homes.

‘However, we predict that this trend will be temporary, with performance weakening and not recovering once the truly high end developments are delivered,’ she added.

In Dubai and Abu Dhabi rental costs declined across the board with Dubai villas down 4.4% and apartments down 5.8% during the quarter. Abu Dhabi rents dropped by 11%, a sharp decline compared with 3% in the first quarter of the year.

‘These declines are supply driven following new on-island deliveries such as Khalidiyah Palace, Al Aryam Tower, Silver and Wave Tower. Static sales prices and declining rents have resulted in further yields compression, currently at 5.1%, and we anticipate that yields will continue to compress in the short term,’ Downs explained.

The figures confirm those released by consultants Colliers International earlier this month which showed house prices fell by 4% in the second quarter of the year compared with an increase of 2% in the first three months of 2010.

The consultancy is predicting that around 33,000 new units will be released onto the market by the end of the year, less than its original estimate of 41,000 due to project delays or rescheduling.

‘There are already more than 340,000 residential properties in Dubai with an average occupancy rate of 87%, with further declines anticipated,’ said Colliers International’s regional director, Ian Albert.

‘The market simply cannot absorb the additional supply unless the population grows and/or the release of stock is slowed down,’ he added.

Albert also warned that a dramatic drop in rents made home ownership a less attractive option for investors in terms of income generation, another factor that was weakening demand.

Property Market in Dubai

Dubai is the emirate of the UAE, the seventh and the second largest in area after Abu Dhabi. The bulk of sales in Dubai is generated from the property and tourism. This is one reason that most people prefer to invest in Dubai property market to make profitable business and make huge profits. Real estate projects in Dubai are simply delightful and a center of attraction for visitors. The climate in Dubai is also dry so it is a perfect choice for real estate agents to invest in.

Opportunities for Buyers

Various options are available to real estate buyers in Dubai that the real estate market offers a wide range of people. Apartments, flats, villas, condominiums and more, buyers have a choice to choose something that would meet their needs and tastes. Buyers who think that the Dubai property market needs a lot of investment can find different properties for what they are looking at incredibly reasonable prices. The best part is that people can easily obtain the property at a favorable spot without having to worry about additional costs.

Opportunities for Investors

As buyers, investors can also get help in investment in Dubai real estate market. There are many options for investors who can buy products at reasonable prices and sell at prices which has been successfully established large profits. Real Estate in Dubai has helped many people to earn huge profits from their properties and take full advantage of the market. All you need to keep in mind are associated laws that are essential, especially when buying or selling a property. If you are new to the real estate market, then real estate agents can provide much help in the management of procedures, legal obligations and other requirements.

Dubai Property Owners Now in Control of their Units

Dubai property owners can now play an active role in management and operation of their towers and communities as per the new regulations which provide the framework for the ‘Dubai Jointly Owned Property Law,’ said an industry expert.

The guidelines, implementing ‘Dubai Jointly Owned Property Law' Law No. 27 gives home owner associations control over who maintains their units, choses service levels and costs and also the much-disputed service fees.

The new ‘Dubai Jointly Owned Property Law' paves way for the legal establishment of home owners associations, said Nicole Betts, head of Association Management, at Dubai-based Asteco Property Management.

“Now that the much anticipated and long awaited regulations are effective, the dawn of a new era in the Dubai property market is upon us. This legislation will bring much need transparency, guidelines and real estate regulatory authority (Rera) directive to the emerging industry of association management. It is good for the market,” she noted.

According to Betts, the idea of home owner associations managing service levels and controlling service fees transparently was ‘good for the market.’

"Until now the way in which jointly owned freehold property has been operated has not been regulated, it has been left up to the developer to provide property management services or outsource them to facility management companies and service charges have been calculated and collected by developers," she pointed out.

“These methods of operation have been widely detrimental resulting in a poor level or lack of services such as cleaning, security, pest control and maintenance of the buildings facilities and an inaccurate representation of service charges to the market due a multitude of factors,” the expert added.

As with any new regulation, Betts said there is a period of adjustment and property owners, developers and service providers will no doubt "face challenging times ahead for as full understanding of the regulations and their implementation becomes understood."

“The effect on the property industry will ultimately be a positive one, providing much needed transparency and disclosure on the operating costs for projects as well as project specifications and contractual arrangements,” she added.

Asteco Property Management manages several informal owners associations in Dubai and its association management team recently attended the Rera ‘Owners’ Association Management Program’ at the Dubai Real Estate Institute.

“We intend to be one of the first organisations to be licensed by Rera to manage owners’ associations as well as providing both developers and property owners with professional consultancy services to assist them with the compliance and transition of their developments,” Betts noted.

According to her, these new regulations will certainly reassure overseas investors. "Transparency is essential especially for foreign owners and to now have an owners association to help protect their interests will certainly boost confidence in the Dubai market."

"Historically, on occasions, there have been challenges in collecting service charges from owners, some refusing to pay believing that they were not legally obliged to do so," she explained.

The regulations will bring much needed legal support which will ultimately enable the owners association to file a lien (security interest) over a unit where the owner refuses to pay their service charge obligations.

“In the current economic climate, investors more now than ever need their properties to earn their keep, providing a continuous income stream and optimal return on investment. A well presented and managed building always initially attracts a better quality of tenant and most importantly retains them longer,” Betts added. TradeArabia News Service

Aramani Hotel Dubai Opening Delayed

The opening of the first hotel designed by Giorgio Armani will be delayed due to volcanic eruptions in Iceland that forced flight cancellations from Europe, according to BusinessWeek.

The Armani Hotel Dubai, in the Burj Khalifa, the world's tallest building, was scheduled to open its doors on April 21, but the opening date has now been pushed to April 27.

Every element of the hotel has been designed by the fashion legend, says a report by International Herald Tribune.

The 160-room hotel will feature eight restaurants and house Armani-branded retail stores, it says.

Real Estate Rents Expected to Drop More

Dubai Real Estate market overview report last month according to Jones Lasalle, Dubai’s present stock of office space stands at 43.6 million sq. ft. Currently, the vacancy level is estimated to be 33 per cent of that or about 14.4 million sq. ft. In addition, the 2010-2012 pipeline of newborn supply has been updated 33 per cent due to delays and project cancellations to 40 million sq. ft. from 60 million sq. ft. Roughly 54.4 million sq. ft. will most certainly remain vacant, that calculates to a vacancy rate of 65 per cent.

The average grade A rentals like in Downtown Burj Khalifa or Dubai International Financial Centre, are currently at Dh250 per sq. ft. and are estimated to decrease even further before stabilizing by 2011 at the earliest.

Approximately 54.4 million sq. ft. priced at a Dubai average of Dh150 would yield roughly Dh8.2 billion of annual revenue for landlords. So what do you do when you can’t rent all this space?

Consultancy firm CB Richard Ellis also reports and predicts that commercial and residential property rents in Dubai will continue to decline this assemblage due to oversupply and rising vacancy rates. Lease rates for commercial space in newer areas of Dubai, which have already dropped 50%, are expected to head lower ‘as competition for tenants continues to lead landlords towards greater incentive packages’, the report said. Residential units are also likely to see ‘a further diminutive contraction during the course of the next assemblage as a substantial volume of newborn residential accommodation reaches the final stages of construction’, it said.

Big move predicted in Dubai real estate

Dubai real estate market will see a shift from quality creation to quality management in 2010 as it looks to rebound from the impact of the global economic downturn, according to Jones Lang Lasalle.

Real estate brokers now recognize as separate professional category

The prospect of an 'all professional' concept in Dubai Property moved a step closer today with the Real Estate Regulatory Agency (RERA) announcing an commendation with the Ministry of Labour (MoL) to have Dubai real estate brokers officially recognised as a separate professional category.

New Labour Cards and Residence Visas issued to realty broker will now include their designation, in exchange to the previous practice of categorising them all as sales staff.

RERA is near to finalising a comprehensive agreement with the MoL which will see all the professions it registers - much as valuers, consultants, mortgage brokers, agents, and surveyors -formally recognised as separate job categories by the Ministry. Marwan containerful Ghulaita, Chief Executive Officer of RERA, said, \"This is the first step towards a complete classification of the real realty professions in Dubai.\"