Tuesday, June 23, 2015

UAE prepared for property price correction of up to 20 per cent this year, says ratings agency S&P

Dubai property prices could fall 10 to 20 per cent over the remainder of this year and early 2016, according to the ratings agency Standard & Poor’s (S&P).

But developers are better placed to cope than in the 2008-09 crisis, according to the agency.

The decline in values is taking place “after three years of sharp price appreciation” and is due to an increase in supply, S&P said.

It cited figures from the property data provider Reidin which anticipated 20,170 units to be delivered in Dubai this year – compared to the three-year annual average of 11,600.

Although it expects domestic economic growth to “slow markedly” in 2015-16 as a result of lower oil prices, it adds that the economy is more diverse than in 2009, when property sales were a key source of revenue.

The population is growing at a rate of 5 to 6 per cent in Dubai and 7 to 8 per cent in Abu Dhabi.

Tourism numbers should also hold up, and regulations such as the federal mortgage cap introduced in 2013 and mandatory requirements for developers to use escrow accounts for off-plan sales have reduced the risk of defaults.

S&P argues that the drop in demand is because of fewer non-residents buying properties.

“In early 2015, for instance, non-resident demand from Russia and other member countries of the Gulf Cooperation Council was particularly subdued.”

Major players in the market, such as Aldar Properties, DIFC Investments, Damac Properties and Emaar Properties, have managed to diversify revenue streams, as well as improve their own balance sheets and cash generation over the past two years.

The ratio of their debt to Ebitda dropped to 1.9x at the end of 2014, compared to 3.3x at the end of 2008.

The S&P credit analyst Franck Delage said that the major developers had attracted more money from rentals, which means that their income streams are more predictable.

“It gives good visibility on revenues. It gives a cushion of resources and helps to cover interest charges on a more predictable basis,” he said.

He added that they were more flexible in terms of revenue mix, with many capable of adapting their product range to produce more budget properties if required

“Since there has been a few years of strong price growth, demand could be more price-sensitive.”

A sensitivity analysis conducted by S&P for the report argued that even if the market performed much worse than predicted, with average selling prices dropping 30 per cent and current interest rates doubling, it would have little impact on the credit rating of major developers.

Sunday, January 25, 2015

Cancelled Real Estate Projects in Dubai Court newly issued List

The Dubai Courts has listed 166 real estate projects in its newly-issued project cancellation list,
The Cancelled Real Estate Projects Committee is currently hearing 17 projects all of which were launched by Reliance Estate Development.
Two projects by Khyool Investment – Abjar Tower and Faras 2 – have been liquidated and money has been distributed among investors.
The courts, however, clarify that there is no specific time period for the judgment to be passed in projects that are under consideration with all investors being informed of the final judgment using different ways of communication listed in advance on its website.
The Real Estate Regulatory Agency (Rera), the regulatory arm of Dubai Land Department, has never officially published the list of cancelled projects.
Here is the official list (# developers name and followed by the projects) of cancelled projects mentioned by the Dubai Courts under various categories.

Cancelled projects that have been liquidated and distributed among investors

# Khyool Investment LLC
  • Abjar Tower
  • Faras 2
Cancelled projects currently under hearing by the committee
# Reliance Estate Development
  • Reliance 1 to 16
Cancelled projects, which have been heard and registered by the committee, and are in process of distributing amounts among investors
# High Rise Properties LLC
  • Dorna Tower
  • Orchid Residences
  • The Heights-Golden
  • Waves Business Tower
  • The Heights-Silver
  • Rotating Residence
  • High Rise Boulevard 1
  • High Rise Boulevard 2

# Hampstead & Mayfair Development Limited
Hampstead Residences

# Zenith Real Estate Development (LLC)
Zenith Tower A3

# Orbit Holdings Limited
Orbrit Holding

# IR Investments Holding Company Limited
Tonino Lamborghini-Elettra Residence

# M E Development L.L.C
Windsor Residence

# Cliff Dwellings Enterprises Ltd
Global Golf Residence

# Galadari Investment Office Limited
G-Office Tower

# Bux Holdings Limited
Beti Ul Funoon

# Parshwa Holdings Limited

# Escan Real Estate
Escan Tower
Eden 1
Eden 2

# Al Zahra Properties
Sunset Gardens A
Sunset Gardens B
Sunrise 2

# Alternative Capital Invest Gmbh (Branch)
Wings of Arabia

# Makaseb Properties
Rufi Tower (Quattro)
Rufi Lake View
Archery Tower
Quattro West

# Merwess Abdulaziz
Azizi Feirouz I
Azizi Feirouz Ii
Azizi Feirouz Iii
Azizi Fountanne Tower

# Remah Holding Limited
Tower 88

# Dujan Properties Ltd
Eden Blue

Cancelled projects which have been transferred to the committee and will be heard soon

# Sanali Holdings Fze
Sanali Business Tower
Sanali Business Heights
Sanali Capital Avenue

# Azizi Investments (L.L.C)
Al Masa Ii

# Integral Properties Development
Integral 05

# Qureshi Faisal Abdul Aziz
Dunes Dahlia

# Dunes Group Developments Limited
Dunes Lilac

# Royal Holdings Ltd
Global Elahi Residence

# Al Tafany Properties Limited
Al Tafany Tower

# Crown Two Holding Limited
Crown Royal

# Noorzak Investments Limited
Jehaan 2
Jehaan 3
Jehaan 4
Jehaan 6
Jehaan 11
Jehaan 9

# Diamond Arch Limited
Diamond Arch 1
Diamond Arch 2

# Jab Developments Inc
Pebble Stone

# Oasis JV Limited
Oasis Heights

# Sheth Estate (International ) Limited
Iris Mist

# Al Mas Worlds Investment Limited
Soraya Tower II

# Kleindienst Properties
The K Suites

# Salya Homes Limited
Mario Valentino Boulevard

# Star Surveying & Evaluating Services
Sahara One

# Burj Alalam Holdings Limited
Burj Alalam

# Rufi Down Town Residency Limited
Rufi Royal Residency

# 32 Group Properties Limited
Paris Residence

# Umesh Kumar Vinodrai Chug
Insignia Residence

# Desert Dream Investments & Development Properties

Dream Harbour Dream Square

# Baiti Properties Development LLC
Al Qurashi

# Flamingo Investments Limited
Sanali Flamingo

# Erc Property Developers Limited
The Heights

# Westar Properties Ltd
Westar Galaxy

# Dheeraj & East Coast (LLC)
The H.Q

# Cenita Global Ltd
Casa Verona

# Sheffield Real Estate LLC
Sheffield Classique

# UAE Waterfront Group Limited
Royal Bay

# Profile Zero Five Five Limited
Zero Five Five

# Syndicate Sealine Limited

# Bangash Developments Limited
Royal Deluxe Villas
Royal Luxury Villas
Royale Garden Residence

# Al Faraa Properties
Burj Al Faraa
Image Residences

# ACW Holding Ltd
Platinum 2

# Sternon Developers Limited
Sternon Tower 1

# Jasmine Garden Limited
Jasmine Garden

# Chapal World LLC.
Chapal Emirates Point

# Satnam Singh
R & R Tower I

# Infinity Emirates Investments LLC
Soccer Tower

# UK-CIG Developments (JVS) Limited
Metropolis Lofts

# New World Investments Limited
World Wide Tower

# Star Developers Limited
Nathalie Tower

# D10 Awf Investment Limited
Aquarius Gate Tower

# Jab Mosaistone Developments Inc
Mosia Stone

# Mahdi Amrollahi (Partner) Antar Marzooq (Owner)

Pisa Tower Residence

# Sameer Mahmoud Al Ali
Zenith Tower

# Es Investments Limited
Kpm 2 & 3

# Smart Home Properties
Elegant Tower

# Premier Group (Fzc)
Berlin City Center

# Aryene Property Developers Limited
Aryene Wonders

# Evergreen Signature Investment Limited

Le Stelle1, 2, 3, 4, 5

# Diamond Properties Limited
Blue Moon Tower

# Rufi Luxury Heights Limited
Rufi Luxury Heights

# Optimo Arabia Limited
Arabia Tower

# Elan Investment Limited
Sanali Quantum

# Gulf Line International Ltd
North Gate Business Tower

# Beliza Resources Limited

# German Holding Group (L.L.C)
Mira Palace

# Oakgrove Global Limited

# Avetona Global Limited

# Mirjana Resources Ltd

# Neel Devcons Limited
Phoenix Wings

# Ashai Tower JVS Limited
Ashai Tower 5

# Rufi Grand Apartments Limited
Rufi Grand Apartments

# Luxor Investments Limited
The Signet

# Pearl Properties
The Palesides

# Kensington Global Investments Inc
Kensington Krystal

# Yra Enterprises Limited
Schon Suites and Schon Residence

# City-D Investments Limited
Pangkor Laut Luxury Residence & Spa Village

# Malson Limited
Maison Residence Collection

# V Resorts Ltd
V-Greece on The World

# Alternative Capital Invest Gmbh (Branch)

Palazza Arabia
Venetian Arabia

# Sama Emirates Estate Development (L.L.C)

The Sama World Tower

# Al Duaa Holdings (Fzc)
Alduaa Marina Tower

# Spain Select Limited
The Aquitainia

# Hampstead & Mayfair Development Limited

Hampstead & Mayfair Boutique Residences

# Bela Vida Limited
Dolce Vita

# Alternative Capital Invest Gmbh (Branch)

Sami Q Tower

# Grun Developers Limited
PKS Residences

# Kleindienst Properties
The K Hotel

# Anis Holdings Limited
Chase Residency

# Crown Three Holding Limited

# Sungwon (Fze)

# Hydra Properties (L.L.C)
Hydra Towers

# Ahmed Abdul Rahim Al Attar Properties LLC



# Posh Holdings Limited
Posh Lifestyles

# Fortune Serene Limited
Fortune Serene

# Dja414 Investment Limited
Sienna Square

# AAA Facilities Management Services (L.L.C)

Eclipse Tower

# Escan Real Estate
Escan Tower

# Alternative Capital Invest Gmbh
Victory Bay Tower

# Burj Al Dua'a Limited
The Plaza

# Alternative Capital Invest Gmbh (Branch)

Pershing Luxury Beach Residence Tower

# Zero Five Zero Limited
Zero Five Zero

# Sebco Limited
Sebco Residence

# Planetex Holdings Co Limited
Crown Avenue

# PND Investments Ltd
10 Tower

# Heman Red and General Trading Limited

According to Dubai Courts, the committee for the liquidation of cancelled real estate projects and settlement of rights related thereof specializes in liquidation of real estate projects by which a final decision of cancellation has been issued by Rera whereas the judgments, orders and decisions issued by the committee shall be final, peremptory and not appeal able by all means of a regular appeal and shall be executed by the implement department of the court.

Wednesday, October 15, 2014

Dewa doubles security deposits for flats, villas

The security deposit for utility connection in Dubai has more than doubled with the Dubai Electricity and Water Authority (Dewa) implementing a hike in the amount for both flats and villas, Khaleej Times has learnt. The deposit for activation of power and water supply to a flat has been hiked to Dh2,100 from Dh1,000 while that for a villa or house has jumped from Dh2,000 to Dh4,100. The deposit is refundable once the utility supply is disconnected.

The change in the security deposit amount has not been updated in the FAQ section on Dewa’s website yet. Dewa officials were not available for comments at the time of going to print. However, Dewa’s customer care contact centre confirmed the hike. An executive who answered the call said the hike was implemented by the end of September.

An Indian expatriate, who did not want to be named, said he paid the new amount of security deposit on October 9. “Though it is a refundable amount, I was shocked to hear there is more than 100 per cent increase in the security deposit now. I was told it was increased just two days before I made the payment. That made me feel even worse because had there been an announcement I would have made the payment a few days in advance.” said the man who is moving into a flat in International City.

Sunday, August 24, 2014

Dubai Visa Rules: UAE to issue emergency entry permits valid for 4 ...

Dubai Visa Rules: UAE to issue emergency entry permits valid for 4 ...: The UAE will issue emergency entry permits, as per Cabinet decision No 22 for 2014, regulating naturalisation and residency services.

According to a report in 'Al Khaleej', travellers on an airline sponsorship will be eligible for an emergency entry permit valid for four days against a payment of Dh100.

The report quotes Brigadier Dr Rashid Sultan Al Khodr, Vice-President of Legal Affairs, Ministry of Interior and official spokesperson of Naturalisation, Residency and Ports Affairs.

Al Khodr said that the permit will be granted to travellers in emergency cases at air terminals, including when a traveler is sick or a flight is cancelled due to bad weather conditions or a technical fault in the aircraft.

The report quoted Al Khodr as pointing out that the emergency entry permit is in keeping with the pace of development at all airports across the country. It also addresses the situation of emergency traffic at airports.

"Entry permits for studies or treatment has not been changed, but has been amended. These are now valid for multiple entry," Al Khodr said, adding that these amendments are in order to facilitate medical tourism and facilitate the quick and easy movement of beneficiaries.