Weekly round up for Investment in Dubai

Dubai developers launch more mid-income housing units

Developers in Dubai continue to focus on launching Mid-segment housing projects, hoping ‘off-plan’ sales to gain traction backed by the right mix of price and payment plan despite transactional activity slowing down for completed residential units in the first quarter 2015.

The new projects offers affordable properties with high quality materials and finishing in a development that is to be completed in less than one year.

There is an excess of developers focusing on the higher end of the residential market, we feel that the demand for affordable, mid-segment properties is far outpacing the available supply and that this segment will continue to experience growth in Dubai and the region as a whole.

The strong response from end-use buyers and investors for residences underlines the real market demand for thoughtfully designed homes that are offered at highly competitive price points.

Arjan , Dubailand is one of the locations which is under the close watch of investors and end users, a prime location with excellent master community benefits makes it a rush drive for many.

Iranian investors eye return to Dubai real estate market

Potential investors from Iran have already started to make enquiries about making acquisitions in Dubai’s real estate, according to market sources.

Iran and world powers - US, Russia, China, France, United Kingdom and Germany - reached a framework nuclear deal , which should pave the way for an end to years of crippling sanctions on the country.

If confirmed in a final agreement by a June 30 deadline, the nuclear deal could encourage more property investment throughout the region from Iranian buyers.

Already, investors from Iran have contacted UAE real estate companies enquiring projects in Arjan-Dubailand, where most of the residential developments are happening and a good option for real estate investors.

Dubai Miracle Garden : Haven for Real Estate Investors

THE MIRACLE OF LIFE: MIRACLE GARDEN, DUBAI

Dubai is located within the Persian Gulf and is one of the seven emirates of the United Arab Emirate. Dubai is commonly mistaken to be a very dry, arid location that has very few attractions to offer. In reality, nothing could be further from the truth! Dubai is home to the world's tallest hotel that acts as a ski resort as well. Dubai is also home to another modern marvel of the world called the Miracle Garden. This Garden is one of the most beautiful and breathtaking sites within Dubai.

This is the prime location in Dubai where investors are flocking currently for plots and off plan projects. Set to give high ROI by 2017 due to the developments going on in and around Arjan. With affluent developed communities nearby like Motor City, Sports city and Arabian Ranches.

DMG sets a momentous world recognition during the 1st phase of  the garden declared as the “Largest Vertical Garden” in the World by the Guinness. This breathtaking garden called “piece of Eden” will continue to stun visitors with millions of blooming flowers having different artistic design each season and remarkable structures.

Seven Flower Pyramids including a Huge one with the UAE flag designed by Flowers.

Five Domes raised distributed in the middle of the Garden, shaded by colored flower baskets designated as seating areas.

Food and beverage shops for Ice Cream, a large variety of Sandwiches, Pop corn & Cotton Candies, Fruits cocktails and juices,  and Miracle Garden Café, distributed between seating areas under thousands of multicolored hanging flower baskets.
 

Floral Clock

A masterpiece of technology, a form of art and a first idea in Dubai. A huge floral  clock around 13 meters in diameter, made out of real plants and flowers with changeable design for every season (twice a year).

It shows Dubai Time, a small bird come out from a wood house and tweet every 15 minutes.
 

Peacocks

As the Peacock is the most colorful species of Birds, Miracle Garden has implemented three, two of them are with a very large fanlike opened tail, semi circle of 12 meters diameter, and one is with closed tail of 13 meters length designed with colored flowers posed on the Green floor.
 

Low oil prices benefit Dubai real estate Investors

The UAE and the emirate of Dubai are uniquely positioned to benefit from the drop in global oil prices but other Gulf states may revise their spending plans in case the bearish trend continues for a longer period.

The Dubai economy is not dependent on oil revenues and its property sector is now driven by end users with a strong government check on speculators who manipulated the market in the past.

Oil importers in the UAE’s catchment area such as India, Europe and some parts of Africa will benefit from the collapse in oil prices. This, in turn, will lead to good demand for investments in non-oil sectors in Dubai such as real estate, logistics, tourism, hospitality and transportation.

With investors from India, Pakistan and the UK traditionally purchasing most property in the UAE, they could gain from the downturn in crude prices.

While oil is one factor influencing the real estate landscape, negative sentiment, global economic uncertainty and the threat of new supply are arguably more important trends for the Dubai market at this time. Investors have become more cautious. This was mirrored in the slowdown of residential transactions during the second half of 2014, with transaction numbers down over 26 per cent on the same period the previous year. While transaction numbers picked up again during Q1 2015, we do expect to see more prudency over the course of the next 12 months, ultimately leading to lower volumes and sales price deflation.

$60-80 a reasonable range

Oil prices were unrealistically high over the past two years. Prices above $100 were unsustainable.”

A combination of poor global economic data, surge in US shale production and the return of Libya output contributed to the fall in oil prices last year. The global oil industry will continue to face headwinds in the longer term.

“Chinese demand is weak and the economy is switching to a less commodity-intensive path of growth. European and Japanese demand are also weak. India and the US are the only bright spots. In addition, there could be 800,000 barrels of oil coming online daily if Iran reaches a nuclear deal,”

Iran’s positive impact

The return of the Iranian buyer to the Dubai property market, however, will be a cause of great cheer.

“If Iran oil comes back onto the market, it would shave off around $5 to $8 from the per barrel price. Also, the release of almost $150 billion in frozen funds will lead to a significant rebound in the Iran economy which will benefit Dubai real estate. Companies looking to set up business in Iran will also want to create a base in Dubai,”

Strong dollar

The Dubai residential sector will see handover of around 23,000 new units, compared with approximately 14,000 and 16,000 units during 2013 and 2014 respectively. These figures will have a dampening effect on the market, with Dubai property prices expected to fall by around 10 per cent. However, a strong dollar, to which the UAE currency is pegged, has helped cushion the impact of the fall in crude prices.

“Owing to a stronger dollar and capital appreciation, we may start to see more transactions this year as people will be more motivated to sell,”. He emphasised on the need to improve the structure of the Dubai economy in order to attract more institutional investments.

Delegates pointed out that Dubai real estate is now driven by end users, as opposed to speculators in the previous property cycle.

“There has been a move in sentiment to a far more cautious approach. Property prices in the UAE are cooling because of prudent regulations, tax changes in India, supply-demand imbalance and the absence of Russian purchasers. Developers are taking a more cautious approach. Projects that would have gone ahead had oil prices been higher are now being reconsidered,” 

Three positives for the Dubai economy: Ideal demographic mix, conducive government policies and low interest rates for expatriates compared to their home market. “There are very few markets in the world where a government can ignite demand so quickly” 

Dubai sees High demand in housing developments for Mid-segment

Many professionals working in Dubai live far — even outside Dubai — from their places of work in upmarket areas. The arrangement means there is more traffic on major commuting routes.

Though there is no shortage of labour accommodation or luxury properties in Dubai, the executive working class is facing a housing squeeze as Dubai expands in area and population.

The commute from lower market segments to areas where there are only major corporations and luxury homes is also putting pressure on the roads.

Dubai has seen property prices and rents rise again recently. They had peaked before dropping during the global financial slowdown in late 2008. Economic recovery followed more recently and led to higher property prices and rent.

Many middle-class workers priced out of the market moved to cheaper areas within Dubai or other emirates. By comparison, there was no significant migration in the labour or upper class brackets.

Many of the luxury projects, properties and developers employ a considerable portion of human resources in the mixed-income spectrum, who do not live in pricey areas.

Majority of the housing developments coming up in Dubailand has Developments targeted as an elite and well designed community with comforts of luxury living.

The proposal to develop communities that will balance out luxury and affordable housing is the current market strategy.

Projections indicate if people live and shop close to their place of work, it will reduce congestion, pollution and volatility of property market cycles.Hence prime locations with quality developments are being sought by families along Umm Suqeim road and in Arjan Master community which is the ideal place to be close to the city and have good affordable housing communities.

Arjan Hottest Property in Dubai's real estate market

Away from the hustle and bustle of Dubai's dynamic lifestyle , is a developing Master community "Arjan" in Dubailand.

Arjan home to Dubai Miracle Garden (DMG) which sets a momentous world recognition during the 1^st phase of  the garden declared as the “Largest Vertical Garden” in the World by the Guinness. This breathtaking garden called “piece of Eden” will continue to stun visitors with millions of blooming flowers having different artistic design each season and remarkable structures

This elegantly planned master community is located opposite to Mohammed Bin Rashid City , and also adjacent to Arabian Ranches and Motor City.Its in close proximity to Sports city as well.

Former emirates Rd. , now Mohammed Bin Zayed road and Al Khail road gives this location ease of access from any part of Dubai.

Arjan tops as the popular search based on the recent report by Bayut : http://blog.bayut.com/a-comprehensive-report-on-dubailand-and-its-popularity-among-people/

This location is in top demand by investors and end users alike.Existing developments and ongoing projects project an elegant community lifestyle with a safe a secure environment.

According to real estate critics , the demand for real estate in Arjan has risen because of strategic location.The expected rental yeild is to be on the higher side for investors in ongoing projects to be handed over by 2017.

Overall review would be as the best location for prime property investors.