Residential News
Open House Events Come of Age
Better Homes has engaged in a number of promotions and campaigns throughout the first half of 2009, where it has focused on offering carefully selected units to its clients, through various marketing methods and channels, within both the sales and leasing segments of its business. The most popular of these methods has undoubtedly been the Open House events.
Over the past few weeks in particular, Better Homes has witnessed significant positive results at two of the largest Open House days it has hosted – the first in Discovery Gardens and the second at Jumeirah Beach Residence in Dubai Marina. “Discovery Gardens was fantastic,” expressed Marketing Manager James Gauduchon, “Our call centre received over 1,400 calls during the event and over 50 leases were signed that day.” Better Homes likewise recorded an overwhelming response at the Jumeirah Beach Residence event. “There were no signs of repressed customers during our Open Day weekend” said Jannie Biddulph, Sales Manager, Better Homes. “Our Open Day promotion received over 350 walk-in customers, seeking both properties for sale and for rent.”
With general enquiries on the increase and talk in the market of mortgages becoming more easily available, Better Homes expects to see continued success in leasing and see an increase in property purchases sooner than many had expected. “As soon as lending becomes available at a wider scale, we expect to see a rise in sales transactions,” said Ms Billy Rautenbach, Director of Operations, “It is difficult to forecast an exact trend, but if the UAE real estate market, specifically in Dubai, is bottoming out as some are suggesting, then now would be the definitive time to invest in property.”
Open House events are held every week throughout Dubai, showcasing both sales and leasing property ranging from studios to penthouses and villas. The events are a great way to view several properties in one day, and to see what kind of property is available on any budget and in almost any location in Dubai.
To see a schedule of upcoming Open House events, visit bhomes.com/openhouse
Prices moving… up?
It seems that the worst may well be over for Dubai property prices. While many experts predicted prices to continue falling throughout the remainder of 2009, several communities have actually increased transaction prices in May and June from a month earlier. This trend isn’t universal – certain communities have continued decreasing – but the universal free fall across Dubai which started in December 2008 has subsided. Indeed, our own State of the Market report predicted prices to continue falling for some time yet, but this is one prediction we’ll be happy to be wrong about if trend has truly changed.
So what is this assertion based on? Well, the June issue of Better Homes magazine highlighted the price increase at The Springs, where 2-bedroom villas were selling at AED 1 million in April and then 1.2 million in May. The Springs anecdote can now be seen in several other communities which have registered increases in their transacted prices, not just asking prices, month on month. Here are some examples:
Certainly, many other communities are still seeing declines, but current figures are suggesting that now is perhaps a great time to get into Dubai property as a medium to long term investment. With property competitively priced throughout the Emirate, investors’ money can go much further. There are indeed incredible deals currently on the market for opportunistic investors.
For more information on current market trends and investment opportunities, please contact a Better Homes consultant at +971 600 52 2212 or visit bhomes.com.
Dubai Metro’s Impact on Property Prices
The introduction of a new metro line in Dubai could mean house prices in the area begin to rise, according to one expert.
Dubai-based Investment Boutique, which monitors property prices, told the Khaleej Times that areas like Jumeirah Lakes Towers and Business Bay could see prices increase by ten per cent after the Red Line is launched in September. Safeena Rangooni-Lakdawala, head of research at Investment Boutique, said: “In cases around the world where a new metro system has been introduced, we have seen a premium on properties nearby the stations.” She added that although Dubai is not a city which depends much on public transport, the areas which are close to metro links will always be more desirable and will have higher prices as a result.
More recently, pricing of the actual Metro fares has been released at surprisingly low levels, which is further good news for property located in the vicinity of Metro stations. Fares will range from a minimum of AED 1.80 to a maximum of AED 6.50 for a single journey. Prices for the more luxurious Gold Class tickets are moderately higher, with a range of AED 3.60 to AED 13, respectively. Furthermore, the fares will include travel on public road buses and water buses. This allows a passenger to continue his or her journey from the Metro to other modes of transportation without paying any additional fare. There are numerous fare options, including monthly passes, and rechargeable electronic cards.
Interested in purchasing some property near a Metro station before the trains start running in September? Give us a call at +971 600 52 2212 or visit bhomes.com
Lease at Rotana’s Park Residence in Abu Dhabi
Better Homes in Abu Dhabi has secured a lease agreement with Arjaan Rotana for its new project, Park Residence.
Park Residence, developed by prestigious Rotana, is a modern residential development adjacent to the 5-star Park Rotana Hotel. The project offers convenient living with fully equipped kitchens, swimming pool, gym and security within a hotel complex. Ideal for both executives and families, this new development offers spacious apartments with excellent finishes and undercover parking.
Located in Khalifa Park (Maqtaa Bridge area of Abu Dhabi), Park Residence is close to the business and banking district, schools, and shopping malls, and is only 10 minutes away from the Abu Dhabi International Exhibitions Centre and 20km from the International Airport. The project has easy access to the major road networks in the area, providing efficient transportation throughout the emirate.
Park Residence will be handed over on September 1, 2009. This is a great opportunity to lease your new home in the heart of Abu Dhabi. For all leasing enquiries, please contact a Better Homes leasing consultant on +971 600 52 2212.
The Great Return
There is currently a substantial migration from surrounding emirates into Dubai. Just as residents moved further from Dubai as rents increased, now they are returning as rents have fallen. For those who had been unable to live in the emirate previously, this is a happy development.
Perhaps the most visible evidence of this phenomenon is the surge in interest for International City from Sharjah residents. As their leases expire, they now have a strong incentive to relocate into Dubai, cutting down substantially on their commute times which had been notoriously burdensome for Sharjah residents working in Dubai. Indeed, current prices in International City can be found below prices in Sharjah from several months ago, so unless one prefers Sharjah for cultural reasons, the opportunity to live closer to work and closer to all the attractions in Dubai is very compelling.
“Dubai is further proving itself as the business hub of the UAE,” says James Gauduchon, Head of Marketing for Better Homes, “it is the epicenter to which people are drawn for economic or lifestyle reasons. As the city becomes unaffordable, residents must move out to the periphery, but when prices come down it’s no surprise that a great return begins.”
Many movers have also come from Abu Dhabi because Abu Dhabi space is still so hard to find and rents are not nearly as attractive. The reason for moving is somewhat different, because Abu Dhabi is still more expensive than Dubai, unlike Sharjah wherein prices remain perpetually below those in Dubai.
“What we understand is that UAE residents, for the most part, want to live in Dubai for its lifestyle, attractions, and infrastructure,” continues James, “as big projects in Dubai have gone from the idea stage to completion, the emirate is becoming what it had previously promised. Many of the most attractive projects in the other emirates are still far from completion and Dubai is benefiting from its first mover advantage.”
Amidst the economic downturn and the uncertainty surrounding property markets, the ability to return to Dubai is a welcome prospect for many residents who now get to enjoy life closer to the city in which they work and play. Similarly, the migration is a strong vote of confidence for the emirate during this volatile year.
Interested in relocating? Visit bhomes.com to browse available properties.
New Six Month Visa Law Examined
One of the biggest pieces of recent news was the announcement and confirmation of the new Dubai residency visa law. This law allows owners of property worth over AED 1 million to obtain a six month, renewable residency visa. While the new law was generally welcomed, many have wanted further details. Ameya Salatry, Better Homes’ Head of Legal, answers some of the most common questions:
1. Are the six month visa and its various conditions enough to entice people to buy property and help revive the market? Reasons why/why not?
Yes- The visa will ease travel for investors from India, Pakistan, Iran and Russia, who had faced tighter visit visa rules in the past. Now, they will be able to visit frequently to manage their properties.
No- Those who want to buy property here or have already purchased property in the UAE often want to stay here longer than six months at a time. Leaving the country just to come back is understandably seen as an inconvenience for investors. Some owners plan to own property for 20 to 30 years, so six months’ permission to stay is problematic.
We expected the visa to encourage foreign investment into the nation’s real estate sector but the visa should have had a longer time frame and without a restriction of being tied to a property value. This is a step in the right direction but is probably not far enough to allay investors’ concerns.
2. Why do you think the Government limited it to six months and imposed several conditions? Could they possibly be worried about a flood of applications?
Yes we feel partially that is the reason. Although this is fundamentally a move to clarify speculation over this regulation and to bolster the real estate sector, the Government wants to be very careful in streamlining visa applications at the backdrop of immigration rules in the UAE.
3. To what extent does the AED 1m minimum property value price out those people who would benefit most from having the residency visa in the first place (i.e. the less well-off)?
The AED 1 million minimum property value as a precondition may indeed be problematic because (a) the property values have fallen; and (b) foreign investors wishing to invest and obtain visas may not look upon this condition as a suitable one, in the midst of an ailing economy. Regulating residency permits on the basis of property value is also bound to create illegal “workaround” solutions where buyers technically pay over 1m but then work out a deal with the seller to get the money back somehow. In our opinion, this minimum level should be revised or removed from the visa regulation.
4. To what extent does the condition of having to earn a minimum salary of Dh10,000 while holding the residency visa eliminate the very reason for having it?
Foreign investors need to prove that they earn a minimum salary of DH 10,000 in order to avail the 6 month visa benefit. Foreign investors can only obtain visa if all of the requirements including the one above are met.
The visa does not give the owner of the property the right to work in the country. In that, the requirement of DH 10,000 as salary condition would be an obstacle in the event an investor looses a job and cannot prove his wages to avail to this visa. It defeats the purpose in that sense. However, we feel the legislative intent is twofold; (a) to attract foreign investors in the foreign countries to hold properties in the UAE and visit the country to manage the same and (b) for foreign investors who already reside in the country and who can fulfill all of the requirements for the visa application to have benefits of the visa to own and manage properties in the UAE..
The purpose is not to guarantee an investor a 6 month visa in the event of falling circumstances like loss of employment, unfortunately.
5. Does the visa have the potential to develop the UAE’s property market as a retirement or second home destination?
We do not feel so, because people in the retirement and second home category normally look for a longer option or prefer to avoid fulfillment of visa conditions which in the present case would have to be met on a recurring basis of every 6 months. The visa works well for seasonal visitors, but not for anyone who wishes to make the UAE their home.
6. If you own two properties that add up to more than Dh1m, do you qualify for a residency visa?
We do not have the text of the law to answer this question, but we feel it would be applicable only for a single unit or apartment.
7. If the property is initially below Dh1, but rises in value, do you qualify for a visa?
You would qualify for a visa once it touches Dh 1 Million or more in value, not before that.
Note: The above is for indicative purposes only and should not be construed to mean legal advice or interpretation of the law. We do not guarantee the accuracy or correctness of the information provided herein above.
For more information on the current regulations regarding property ownership in the UAE, please visit bhomes.com or speak with a consultant at +971 600 52 2212
