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UAE: Non-Oil Sector Contributes 68.6% Of GDP, Expected To Achieve 80% In 2021 – 3villaz.com

Diversification Of The UAE Economy Includes Infrastructure Development Leading To Increasing Demand In Real Estate Market

Source: UAE: Non-Oil Sector Contributes 68.6% Of GDP, Expected To Achieve 80% In 2021 – 3villaz.com

Is Dubai’s property market still too hot?

If you wanted to make a quick buck in property, Dubai would have been the place to do it in the last couple of years. And the desert of superlatives is still going strong despite a partial slowdown.

According to CBRE Group, apartment prices increased by a more modest 3.2 percent in the second quarter of 2014, bringing gains over the last year to 21 percent. But that’s exactly the problem.

Memories of the last real estate bubble that blew up in 2009 and exposed a debt-laden Emirate are still fresh.

Read More: DP World Chairman tells CNBC: Dubai never had a property bubble

“In our view, the residential market is getting close to the top and we would perhaps expect growth for another 12-18 months, but certainly not at the rate we’ve been seeing. It’s been unsustainable,” Craig Plumb, Head of Research, MENA, at Jones Lang LaSalle (JLL), told CNBC.

The government has moved to cool the rally, doubling transaction fees to four percent and introducing revised caps on mortgages at the end of last year. Still, the International Monetary Fund (IMF) has warned repeatedly over the summer that more measures are needed to avoid a replay of the previous disaster.

“The threat of another period of anomalous growth as we saw in 2007-08 was curbed through the effective combination of government backed legislation and general affordability has helped to rein in growth. This is reflected in the falling number of transactions, particularly at the top end of the villa market,” Steve Morgan, Chief Executive at Cluttons Middle East, explained to CNBC.

Some of Dubai’s biggest developers have also moved on their own to ban real estate brokers from reselling off-plan properties before handover.

Plum agreed further policy action was warranted. “Yes, they’ve done more than they did last time. Whether they have done enough? There is probably a need to do more things,” he added.

Beyond the announcements of Dubai architectural grandeur is the untold story of delayed projects and those that never saw the light of day. CNBC visited several abandoned construction sites and spoke to many investors hurt by the last property crash; nobody agreed to appear on camera due to ongoing litigation or fear of retribution.

Read More: Dubai property market still sparkling…for now

There is another fundamental difference this time round. Turmoil in the Arab World, from Libya to Syria, means wealth is often looking for a new home, and most roads lead to Dubai. If you’ve got money, there are plenty of ways to spend it here without getting asked too many questions. Case in point: An estimated 70 percent of property transactions are in cash.

Mahesh Menda, a prominent investor who came to Dubai over three decades ago and was among the first buyers at one of the Emirate’s most prestigious addresses, is no stranger to the property market’s volatility.

“Even today, if I had to buy land, or say a luxury apartment, the best price I pay in one of the best towers is a thousand dollars [per square foot], give or take 10-15 percent. I compare that to New York, to London, to Bombay…this was going for a song”.

According to the Dubai Land Department, the top foreign buyers of property in Dubai are from India, the United Kingdom, Pakistan and Iran.

Read More : San Diego real estate cools off: Will rest of California follow?

A rapidly growing pipeline of projects is only fueling the “bubble talk” in the city’s offices and cafes. The government plans to build a mall bigger than the world’s biggest it already has, an entire addition to downtown Dubai with villas, hotels and residential apartments. In total, JLL forecasts more than 40,000 additional units to come online through 2016.

Strong economic growth will fill a large chunk of that space. The IMF expects expansion to average 5.5 percent until the end of the decade, underpinned by the city hosting the world’s fair, the Expo in 2020.

You have to visit Dubai to get a sense of the scale of the construction boom that is underway. And with more grandiose projects announced, the next few years will be a real test for whether the Dubai property market has actually matured.

Source : cnbc.com

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Dubai’s DMCC turn out to be UAE’s largest free zone

As stated by the executive chairman of (DMCC) – The Dubai Multi Commodities Center has turned into the UAE’s biggest free zone, exceeding Jebel Ali

Dubai's DMCC

DMCC now has more than 7,330 presently registered, with an amount of 200 organizations joining every month and a preservation rate of 94 percent, said Ahmed Bin Sulayem in an announcement.

Dubai Multi Commodities centre dmcc

He said DMCC likewise remains the UAE’s rapidly developing free zone, including that it was aiming on 10,000 organizations by 2015.

Bin Sulayem said: “We are currently the UAE’s biggest and rapidly developing free zone with in excess of 7,330 dynamic organizations – we remain consigned to more development keeping in mind the end goal to bond Dubai as the worldwide destination for products exchange and enterprise.

“We are well on our approach to meeting our goal of 10,000 organizations by 2015.

“Our extension arrangements, including the DMCC business park and the world’s tallest commercial tower, will pander to huge enterprises looking to get to new markets and will be the following stage in DMCC’s and Dubai’s development.”

DMCC as of late declared arrangements to manufacture the world’s tallest business tower to coddle proceeded interest.

The development of the tower and 107,000 sq m business park will include an extra 50 percent of business space or 743,224 sq m to the current 2.9 million sq m of developed region.

Canister Sulayem included: “We keep on innovating and balancing key trading units over the globe to further backing Dubai’s yearning investment advancement program. Presently, we are focusing on serving markets along the new Silk Route and have turned into a solid facilitator of exchange for product utilizing nation which is in African and expending countries in Asia, Asian, Europe, South America and the US.”

A third of DMCC part organizations are from South Asia, a third from the Middle East (along with UAE), and a third from Western Europe and North America.

Gautam Sashittal, chief operating officer, DMCC, said: “In 2014 which is presently, around a 95 percent of the organizations that have decided to work from the DMCC Free Zone are new to Dubai, which moreover shows DMCC’s and Dubai’s relentless advance as a business terminus where Sme’s and multi-nationals much the same can use complete service tool stash, trade with trust and develop their business.”

With 65 blended use business and residential towers and around 220 retail outlets in operation, there are as of now more than 75,000 individuals working and living inside Jumeirah Lakes Towers.

The conversion of one of its lakes into a 55,000 sqm community park and the street arranges inside the advancement are because of be finished before this current year’s over.

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Dubai real estate transactions total $16.6bn in Q1

Dubai Land Department (DLD) has revealed their new real estate dealings has been witnessed in the emirates throughout the first few months of this year, and these transactions exceeded AED61 billion ($16.6 billion), During the Q1 of 2013 transactions was around 38 percent.

Dubai real estate transactions total $16.6bn in Q1

Dubai real estate transactions total $16.6bn in Q1

As reported by DLD that total real estate deals rounded up to 15,694 within the first three months of this year, after March 2014 there was an increase of activity of 11 percent.

The statistics revealed that there were almost 11,567 activities which had the value of talk of AED31.5 billion and 3,482 mortgage transactions, which again has a value of AED 28 billion.

Director of DLD Sultan Butti Bin Merjen stated that as an end result in the beginning of 2014 is a sign of improved investor self assurance in Dubai and particularly in the city’s real estate sector, and this is measured as the essential element of the national economy.

He further stated that they are looking forward for the next four quarters to be as likely as the Q1 2014, particularly during the interlude of the numerous inspiring economic projects in Dubai in addition to the discovery of few measures and planning as for Dubai’s hosting Expo 2020.

Land transactions and its sales and mortgages held for the lion’s share of a sum of figure in Q1, where the land mortgage was of worth at AED24.1 billion and sales in relation to land was about AED 17. 4 billion.

Residential units and their mortgage and sales crossed up to a value of AED13 billion and AED 3.1 billion respectively.

The statistics assures increased deals in the real estate sector over the past few months; this is a direct proof and assurance that Dubai is the most alluring investment spot and ownership, weather for a longer period of investment or for short tern requirements.

Bin Mejren further added they they regard as probable in strengthening the activity to persist in over the upcoming years, and also there would be investors  attaining good returns on their invest in real estate.

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