Finding the right property

24 October, 2007

Looking for property on the Dubai real estate market can be a daunting task, there is just so much choice and variety. Most overseas property investors are only familiar with the largest of property developments such as the Burj Dubai or the Palm Trilogy, yet there are so many more that can also be more affordable simply because they haven't received the same level of hype. Thats why its important to seek expert local advice when considering investments in Dubai.

The most important thing that property buyers need to know is what exactly is available on the market. Besides the most commercial of projects, there are also a good variety of projects that cater to property investors that want something more affordable. Whatever your taste, there really is property to suit every need, from small apartments to penthouses, comfortable villas to luxury mansions.

Property prices stretch across quite a large range, with studio apartments available from around £50,000 to £140,000. Larger apartments can range up to the £700,000 mark and for villas, as they tend to be in short supply, they can range from around £300,000 for a smaller villa or town house, upwards beyond £700,000 and even in some cases beyond £1.5m for exclusive luxury villas and mansions. At the top end are luxury custom personalized penthouses which stretch all the way to £7m.

The prices of property really depends on the amount of square footage, location, the type of project and the number of units available. Fortunately, the sheer variety of projects allow you to pick and choose the property that is right for you

We work with the region's largest independent developer, and have access to an unrivalled variety of property in the region - residential, offices, and retail - and with project ranging from around £50,000 up to £7m there is something to suit every investors budget.

See our property lists here online or contact us now to speak directly to an expert.
Residential
Office
Retail

Commercial property growth forecast strong

In its latest study on the Dubai property market, Egypt's largest investment bank observed that while prices for freehold commercial space have risen, selling prices remain at the bottom end among business cities, coming in at an average of about $400 per square foot, resulting in rental yields of around 20 per cent, compared to a global average of 6-7 per cent.

The study noted that over the short term, with demand for commercial property outpacing supply, rents will continue to rise. This has sustained the trend of rental increases.

Market analysis estimate commercial occupancy rates of around 99 per cent in both traditional and newer areas of Dubai. "According to our estimates, office rents have risen by almost 40 per cent year-to-date (YTD) in both old and new areas of Dubai as demand continues to outweigh supply," it said.

The bank's analysis shows that office and commercial rents in Old Dubai (Garhoud, Bur Dubai and parts of Sheikh Zayed Road) have risen by 36 per cent on average (YTD) and in new Dubai (Shaikh Zayed Road, DIFC, Business Bay, Jumeirah Lake Towers, Internet and Media City) by almost 45 per cent (YTD).

"The more luxurious Grade A properties in both areas jumped by around 35 per cent on average. Finding office space in the city remains arduous, with companies settling for less desirable locations, renting temporary space in villas, setting up branches or smaller offices or buying rather than leasing office space. Newer areas of Dubai have become centres of commerce, a trend that explains why rental rate increases are not easing in these locations."

It observed that selling prices for off-plan developments in the DIFC, Burj Dubai and offices in the JLT have increased by approximately 17 per cent over the past eight months due to the desirability of their locations and on expectations of strong yields based on current off-plan prices and expected future rents.

UPDATED LIST OF RESIDENTIAL PROPERTIES

See our updated list of residential properties here.

Commercial Property in Dubai - a good investment

(Published by DubaiLime September 3rd, 2007 in People, Living)

The Dubai property market is still booming in the UAE. With rental prices increasing month on month, more and more residents and businesses are now looking to get on the Dubai housing ladder. Commercial property sales (such as shops, offices and hospitality ventures) have also shown promising growth and good returns over the past few years.

For businesses, buying a property can be a healthy investment and for investors, a great way to diversify their investment portfolio.

Investors outside the UAE have experienced home market slumps - in many cases the housing and property boom has leveled off and the largest returns already discovered.

Dubai is a very attractive investment hub. It’s done a fantastic job of marketing itself to the rest of the world and as a consequence Dubai has attracted a lot of attention to investors across the world.

The potential for commercial and residential property is potentially enormous. Dubai is in a great location, has swift and numerous flight connections and a very favorable tax system. Its relaxed policy to western cultures, the influx of European, Australian and American universities and its addiction to luxurious standards, unrivaled hospitality and high class living also makes Dubai an enjoyable place to live. These ingredients have meant the population has and will continue to increase rapidly.

Dubai Property prices
Residential and commercial property prices have increased year on year since the launch of new laws allowing the sale of freehold properties to overseas investors but despite the price increase, there has been no apparent let up in Dubai property sales. Recent studies suggest that the demand for residential and commercial property is likely to continue for the foreseeable future.

Capital gains and income yields are higher than many property markets. Returns are still high.

Current rumors question the unfathomable amount of commercial and residential building currently taking place in Dubai and ask whether supply could perhaps be outstripping demand. However, according to a Dubai property agent, supply is still not keeping up with demand.

On bedroom flats and Studios are on high demand due to the number of ex-patriots entering the country. Office space is hard to come by, especially in the free zones and shop space is bound to be needed for the amount of residential build going on. With rentals prices still rising, investors can look to good returns on rental income as well as a capital appreciation.

In recent years, prices have increased by as much as 25 per cent per annum, while remaining low by UK standards, and Dubai has become an international property hotspot. The consequent surge in new residential developments has fuelled fears of a property bubble, but demand is still exceeding supply and is not expected to slow in the short term.

Other reasons for investing in commercial property in Dubai include the continual expansion of Dubai as a services hub and in particular a financial services hub. More and more international commercial companies are moving into Dubai. By doing this they are showing their commitment to the region- a strong indication this Emirate is going from strength to strength, providing good returns all round and is expected to continue to do so.

Cost of commercial property in Dubai is still low when compared to international standards and returns are expected to be higher than the majority of countries in years to come. The reasoning behind such is perhaps foreign investors placing money into such properties, which will push the value of the real estate to international standards.

There is currently a Disneyland attraction being built in Dubai. This would result in an increase in tourist visitors to Dubai and if your property is aptly situated, there is a chance you will be able to rent your property to holiday makers. Short term rentals in general provide much higher yields when compared to long term tenants. Real estate companies double up as property mangers so these companies will be able to handle most of the maintenance and payment collections on your behalf.

The demand for commercial properties around the various developments will increase and companies scramble for the high returns expected from the tourist dollar.

100% of new commercial tower sold out

Tameel Holding has announced today that all the units in its "Silver Tower" development has been successfully sold within fifteen days of its launch.

This achievement brings to Tameel, the credit of being the first in Business Bay, Dubai, to announce 100 percent sales of its units, among the other 500 commercial and residential towers in Business Bay.

The success is a strong indicator of the customer confidence in the property market.

Experts predict that the population in Dubai will touch 2 million towards the year 2015.

Dubai Land Department committed to property consumer protection

Dubai Land Department (DLD) yesterday signed an escrow account agreement with National Bank of Dubai (NBD).

The decision to establish an escrow framework for property developers further enhances the confidence of investors and end users in the long-term stability of the real estate sector in Dubai. Proactive steps to regulate the real estate industry underlines Dubai's committment to ensure the highest of standards are adhered to while raising the bar of the industry and encouraging both domestic and international investment.


The signing ceremony took place in the offices of DLD, where Juma'a Bin Humaidan, Assistant Director General, Dubai Land Department and Rajesh Thapar, Group Head of Corporate & Institutional Banking, National Bank of Dubai signed the agreement.

Through this agreement, NBD has been appointed as an official escrow account bank by the DLD. The signing appoints NBD as one of the few banks in Dubai to provide escrow accounts designed to protect consumer payments on new and in the pipeline properties in Dubai.

Under the recently promulgated Law No. 8, property developers in Dubai must place project receivables in escrow, or trust, until predetermined development milestones are achieved and independently verified by the escrow account bank. These escrow accounts are regulated by the Dubai Land Department.

NBD's Retail Banking is ranked amongst the top 3 mortgage finance providers in the UAE, offering a suite of mortgage finance solutions and a reputed panel of 14 developers to choose from. This appointment will complement NBD's leading position in the mortgage finance market, adding value both to its customers and its property development partners.

OFFICE PROPERTIES

WATER'S EDGE
Water's Edge is a spectacular 20-storey waterfront tower offering the ultimate convenience for anyone seeking to work and enjoy their leisure time in one strategic location. Offering vistas of sparkling water, buzzing and vibrant surroundings, activities, events and wide-open spaces, this tower gives a whole new definition to a work environment. Employees, clients and business associates can enjoy the diversity that comes with working and rejuvenating both side by side.

Type: Office
Location: Business Bay, Dubai
Completion: TBC
Accommodation: 1355 - 2100 sqft.
Prices: ~ 2,500,000 - 3,900,000 (AED), 360,000 - 560,000 (GBP)

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THE CORNER
The Corner at Business Bay is a spectacular 19-storey office tower, ideally located for those who enjoy being in the midst of all the action. Working here is intended for people who seek to be associated with a vibrant community of like-minded individuals. From an incredible architectural style to the breathtaking views outside, The Corner at Business Bay provides a fitting ambience for multinationals seeking to establish base in this region.

Type: Office
Location: Business Bay, Dubai
Completion: TBC
Accommodation: 920 - 1600sqft.
Prices: ~ 1,600,000 - 2,800,000 (AED), 230,000 - 400,000 (GBP)

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PARK CENTRAL
Park Central is a spectacular 17-storey office tower, right in the heart of Business Bay. An ideal location for those who enjoy being in the midst of all the action. With offices designed to give you fantastic lake views from three sides of the tower.

Type: Office
Location: Business Bay, Dubai
Completion: TBC
Accommodation: 900 - 1600 sqft.
Prices: ~ 1,600,000 - 2,800,000 (AED), 230,000 - 400,000 (GBP)

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EXECUTIVE BAY
Designed to the highest standards and offering a previously unimagined office environment, Executive Bay is a 19-storey marvel. Situated on a prime waterfront location in Business Bay, it offers dramatic views of the region's new business hub. From an incredible architectural style to the breathtaking views outside, working here is intended for people that seek to be associated with a vibrant community of like-minded individuals.

Type: Office
Location: Business Bay, Dubai
Completion: TBC
Accommodation: 950 - 1250 sqft.
Prices: ~ 1,600,000 - 2,200,000 (AED), 230,000 - 315,000 (GBP)

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XL TOWER
An excellent environment and infrastructure for businesses from around the world to set up their local, regional and international headquarters located next to Downtown Dubai.
A master development of all developments, Business Bay is the new emerging freehold business, commercial and residential district. Next to Downtown Dubai (Burj Dubai), along Sheikh Zayed Road, extending up to a new creek and all the way to Dubai's coast.
XL Towers is a modern elegance designed for commercial use. Where professionals can enjoy their own space, in every sense of the world. Airy lobby, Spacious elevators, Expansively planned workstations etc. A project with a place for everything and everything in its place.

Type: Office
Location: Business Bay, Dubai
Completion: Oct-08
Accommodation: 1000 - 1500 sqft.
Prices: ~ 2,100,000 - 3,100,000 (AED), 300,000 - 440,000 (GBP)

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BUSINESS TOWER
A symbol of dynamism and growth, the Business Tower at Business Bay is a signature commercial building which stands out among the others. An innovative office design with leading edge sustainability, the form of the tower is in direct response to the path of the sun as it moves around the building thus encouraging maximum natural light into the office. Contributing to the perfect balance of light is an exterior layer of translucent screen and solar shading, which keeps away harsh glares and ensure soft filtered light into the office.

Stay ahead of competition. Work better. Meet deadlines earlier. Make smooth transactions a daily routine. And to this end, Business Tower offers varied infrastructure which makes all this easily possible.

Type: Office
Location: Business Bay, Dubai
Completion: Dec-08
Accommodation: 1200 - 1300 sqft.
Prices: ~ 2,500,000 - 2,800,000 (AED), 360,000 - 400,000 (GBP)

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PARK TOWERS
Inspired by the evolution of Dubai and the undulating soft forms of the desert, the Park Towers is an incredible twin landmark, designed by the finest architects in the world. Its duality is expressed by two vertical solid fins, which represent the rigid urban form reaching into the sky, from which the curved expressive soft form of the tower façade is suspended. .
Minutes away from the hip and happening parts of the city, Park Towers offers a panoramic view of Dubai and the new financial centre and is poised to be the most sought after address in Dubai's International Financial Centre.

Type: Office
Location:
Completion: TBC
Accommodation: 2100 - 2800 sqft.
Prices: ~ 6,500,000 - 8,300,000 (AED), 930,000 - 1,200,000 (GBP)

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Please note: We do our best to ensure that price guides are accurate, but prices can change. Therefore prices shown are for guidance only. Equivalents shown in £ (GBP) are calculated using an approximated exchange rate, and are also for guidance only. Exchange rates are always subject to fluctuation. We will be happy to confirm prices on request.

RETAIL PROPERTIES

EMIRATES GARDENS
A stunning sequel to a sensational investment and beautiful living. Emirates Gardens 2. High on quality yet low on investment. The beautiful development is a delightful combination of 3 buildings. Maple, Magnolia and Mulberry - each ground plus 4-storeys. A warm, friendly, peaceful, secure neighbourhood with great retail opportunity. Located in Jumeirah Village South near Dubai Media City, Dubai Internet City and the Jebel Ali Free zones.

Type: Retail space
Location: Jumeirah Village (South), Dubai
Completion: Sep-08
Accommodation: 500 - 780 sqft.
Prices: ~ 1,000,000 - 1,600,000 (AED), 140,000 - 230,000 (GBP)

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THE PIAZZA - Retail
A unique and extraordinary design that embraces different color schemes and material-mix to create a distinct landmark. Located in Fox Hills - Lusail, The Piazza is a high-class residential and retail complex. A beautiful charming ambience conceptualized to catch the eye from far. A stunning sight to behold from close. Creating the charisma of a picture-perfect lifestyle.

Type: Retail space
Location: Qatar-Lusial, Foxhill, Doha
Completion: TBC
Accommodation: 1100 - 1600 sqft
Prices: ~ 2,200,000 - 3,100,000 (AED), 310,000 - 440,000 (GBP)

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SMART HEIGHTS
In today's era of blue-chip professionalism, jet-set deadlines and rising overheads, there is simply nothing better than Smart Office Space to ensure high returns on per employee investment. And you can be rest assured of dramatic results in work efficiency, in almost every area of your business activities.
Little wonder then the corporate world is moving their offices and their staff to Smart Office Space. Damac Properties has been at the forefront of introducing path-breaking Smart Technology in residential projects and now in office space.
Freehold smart office space in a freezone is a smart investment. Owning an office in the heart of Technology & Media Freezone(TECOM), Dubai also gives your business the competitive edge, reduces your overheads and increases productivity.
A hub of a vibrant business community Smart Heights gives you the full range of business opportunities to entrepreneurs as well as regional, national and international companies.

Type: Retail space
Location: TECOM, Dubai
Completion: Nov-08
Accommodation: 1800 - 2300 sqft. (retail). 6500 sqft. (restaurant). 24 floors
Prices: ~ 4,500,000 - 5,800,000 (AED) (retail) and~ 19,600,000 (AED) (restaurant), 640,000 - 830,000 (retail) and 2,800,000 (restaurant) (GBP)

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PARK TOWER
Located in the heart of the region's financial hub, this shopping paradise is designed to become the most sought after destination of high Net-worth customers from in and outside Dubai. And also the business class who work and live here.
The two-tower masterpiece is inspired by the evolution of Dubai and the undulating forms of the desert. Residents can enjoy an ultra modern luxurious lifestyle with panoramic views of the designer city.
Unwind anywhere and anytime, with world-class recreational facilities, whether you'd like to wander into a distant dream, attend to your mind's needs or simply experience a little peace and tranquility; Park Towers is the place to be.

Type: Office
Location: Financial centre
Completion: TBC
Accommodation: 2400 - 5800 sqft.
Prices: ~ 6,600,000 - 23,000,000 (AED), 940,000 - 3,300,000 (GBP)

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CAPITAL BAY

Type: Retail space
Location: Business Bay, Dubai
Completion: TBC
Accommodation: 1100 - 2200 sqft.
Prices: ~ 1,900,000 - 3,700,000 (AED), 270,000 - 530,000 (GBP)

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Please note: We do our best to ensure that price guides are accurate, but prices can change. Therefore prices shown are for guidance only. Equivalents shown in £ (GBP) are calculated using an approximated exchange rate, and are also for guidance only. Exchange rates are always subject to fluctuation. We will be happy to confirm prices on request.

BENEFITS OF DUBAI PROPERTIY INVESTMENTS

There are many benefits of investing in residential or commercial property in Dubai. Dubai is perhaps the most vibrant developing city in the world, a fact recognised by private and institutional investors, as well as the corporate world.

Eight out of the world's largest companies now have major offices in the city, and nearly 400 of the Fortune 500 companies are represented there too.

The Emirates is rich with the proceeds of oil production which has formed the backbone of the economy for many years, but the government has the foresight to know that this will not always be the case and is investing heavily in diversifying its own economy. Indeed it has set targets concerning its GDP (gross domestic produce), and stated that by 2010 only 10% of its GDP will be from the oil industry. Such has been its committment that this target was smashed four years early, in 2006. Growth in Dubai's leisure, tourism and commercial sectors has been so swift that oil represented only 3% of the GDP in 2006.

Some other facts and figures about Dubai:
- 0% income tax, 0% capital gains tax
- 0% corporate tax
- No foreign exchange controls
- No trade barriers or quotas
- Stable, freely convertible currency pegged to the dollar

Some facts and figures about the developers we represent:
- $20bn conglomerate with a diversified range of businesses (including property development)
- Employs over 8000 people across operations in 20 countries
- Its property development business is the Middle East's largest private master developer, and one of UAE's largest private businesses
- 4200 million sq ft of luxury and 9500 customers, across developments in 6 countries
- 16 offices, 68 projects

Some investment and return figures:
Lake Terrace (2003 - now) - 63% annual appreciation, 190% total appreciation
Lake View (2004 - now) - 56% annual appreciation, 111% total appreciation
Lago Vista (2005 - now) - 34.5% annual appreciation
Marina Terrace, launched in 2003, investors have made 228% total appreciation plus 23% rental yields
Waves, launched in 2002, investors have returned 213% appreciation and 19% rental yields

The pros of Residential v's Commercial:
Residential - strong capital growth, good rental yields, taper relief 40% after 10 years
Commercial - stronger capital growth, better rental yields, taper relief 75% after 2 years