RAK Properties (PJSC), the most renowned property developer in the Emirate of Ras Al Khaimah listed in Abu Dhabi Stock Exchange (ADX) has recently awarded contracts to construct 20 buildings in the flagship project the Mina Al Arab.

 The 20 residential buildings comprises of studios, one, two and three bedroom apartments. Some of these buildings have retails shops facing beautiful waterfront or the greens. There will be 808 residential units with a   total built up area of approximately 151,000 sqm.

Dubai properties located across those parts of the emirate made more accessible by the new Dubai Metro, may receive a price boost.

The new rail service will start operation of around 44 trains out of 62 to run on the Red Line when the service is launched on 9 September 2009.

A total of 79 trains will be used on the Red and the Green Lines to carry around 27,000 passengers per hour per direction once the metro is fully operational in March next year.

A senior official at Dubai Metro told the press: “Initially, we will launch operations starting with the capacity of around 6,300 passengers per hour per direction with fewer trains on the track. All the stations are not yet ready but we hope to open 17 to 22 stations out of the total 29.”

The Dubai Metro project, which will become the world's lengthiest driverless scheme, is being completed in a record time of just 49 months. The metro track runs from Al Rashidiya Station to Jebel Ali Free Zone Station.

Dubai’s foremost iconic project, the world’s tallest building expected to position Dubai again as a world leisure and tourist destination is the Burj Dubai. It is the tallest tower in the world planned to be completed this December.

Previous reports had linked the mega structure with a soft opening in September to coincide with the start of operations on Dubai Metro. The UAE’s daily The National said a spokesman from the developers confirmed, however, that the giant tower would not open until December 2009 as with other projects that have been delayed in the city due to the recession.

Dubai-listed Deyaar Development has scrapped its Enclave project in Dubai and put a deal in Saudi Arabia on hold, its CEO said in comments published on Wednesday, as the downturn in the Gulf real estate market sees further project cancellations.

"We had to cancel the Enclave. Although the project was good, it was launched at a very inopportune time,” Markus Giebel was quoted as saying by UAE daily Emirates Business.

“As a developer we had to be fair and so we returned 100 per cent of our investors' money. We will be happy to review the decision if the market comes back.”

Dubai-based real estate giant Nakheel PJSC said Wednesday it has received funds from the government of Dubai, without specifying the amount.

"Some of the funds will be used for payments to contractors," Dubai's Palm Island builder said in a statement on Nasdaq Dubai's Web site, adding that the "amount, terms and use of all the funds remain under discussion".

The company is at the center of growing concerns over Dubai's ability to repay billions of dollars in debt and is entangled in a growing number of disputes over unpaid bills to foreign contractors.

Dubai prices have dropped 32 percent in the last year and 40 percent in the last quarter, according to the latest edition of the Knight Frank Global House Price Index, released today.

Along with Dubai, Latvia (36 percent) and Singapore (23.8 percent) saw the largest declines since the first quarter of 2008, the property firm reports.

Israel posted the largest gain in the last year, a 10.9 increase from the first quarter of 2008, followed by the Czech Republic with a 9.9 percent increase, Jersey (an island off the coast of Normandy that is part of the British commonwealth) with a 6.9 percent jump and Switzerland, which recorded a 5.6 percent increase.

Home prices in Dubai plunged by 41 per cent in the first quarter of the year compared to the previous three months, as a result of a loss of jobs and a drying up of bank credit during the economic slowdown, a property consultancy said on Tuesday.

The price plunge, which erased nearly two years’ of gains in property values, was the second consecutive quarterly decline, Colliers International said. Colliers reported an 8 per cent decrease in home prices during the October-December period, the first quarterly decrease since Dubai’s property boom began.

Rent rises in Abu Dhabi have been capped at five percent per year under a new law passed by UAE President Sheikh Khalifa Bin Zayed Al Nahyan on Saturday, according to the official news agency.

Sheikh Khalifa, issued Law No. 6 of 2009 making amendments to Law No. 20 of 2006 regulating the landlord-tenant relationship, WAM said.

It sees restrictions on rent increases on residential, commercial and industrial properties, and those used for professional services, remaining at the the previous five percent cap.

The law is applicable to existing contracts of three years or less for already signed contracts and those that are agreed after the law takes effect.

However, with rents falling by up to 20 percent many landlords will be unable to increase the rents by even this much.

The Dubai Land Department is planning to issue an amended property law that will determine refunds for investors who default on their payments based on construction progress of the project, according to lawyers briefed on the matter.

The move will bring clarity to the property market in Dubai, where a credit squeeze and the effects of the global financial crisis have led to defaults by home buyers. But some investors have criticised the amendment for being too heavily in favour of developers.

Lawyers say the amendment to article 11 of Dubai Law 13 of 2008 will stipulate that in cases where a buyer defaults and the developer has constructed at least 80 per cent of the project, the buyer loses all money paid to that point. The home can then be auctioned to compensate the developer for the rest of the cost.

Rental rates in Dubai have become one of the favorite topics of research for firms in the region, and while most agree that they are falling, the numbers vary from one report to another. Here’s a selection:

1. Property consultancy firm Asteco has just released the Dubai Report, according to which apartment and villa rents in the emirate have fallen by 22 and 34 percent respectively in the first quarter of 2009, as compared to the prices in the fourth quarter of 2008.

It also says that the biggest apartment rental drops seen were in Palm Jumeirah, Al Barsha, Bur Dubai and Discovery Gardens, where average rents were around 30 percent lower than in the fourth quarter of 2008. The largest decrease in villa rents was reported in Springs and Jumeirah Island, at 41 percent.

Demand for Abu Dhabi property could receive a boost, following the announcement that the Tourism Development and Investment Company (TDIC) has struck an agreement with four banks and a finance firm to grant mortgage finance for purchasers of homes in the emirate.

Banks have tightened their belts since the global credit crunch kicked-in, which in part, have contributed to the slowdown in the emirate’s property market.

However, it is now hoped that efforts to get banks lending more freely again, will rejuvenate the property sector, once more.
Abu Dhabi Finance, an organisation set-up in collaboration between several house builders in Abu Dhabi developers and Mubadala Development, an investment company owned by the government, is now offering mortgages with an 85% loan-to-value for period of up to 30 years.

The banks that signed agreements with TDIC are Mashreq Bank, Standard Chartered Bank, National Bank of Abu Dhabi, and Abu Dhabi Commercial Bank.

Banks and property firms in Dubai are renegotiating contracts and litigation cases are mounting as the global financial crisis hits the once-booming real estate sector, partners at an international law firm said.

Ashley Painter, partner at Clyde & Co's Middle East financial services unit specializing in banking and finance, said his company was dealing with dozens of cases.

"Anything that is not completed I think would be under some form of negotiation. It depends, of course, which developer you are talking about..." Painter told Reuters Islamic Banking and Finance Summit in Dubai.

"They are looking to give haircuts to the sub-contractors so that the cost of building the things is going down... They are renegotiating the payment terms with the borrower..." he added.

Dubai’s population is set to fall 17 percent this year as the former boomtown suffers from a real estate slump that could cause the UAE economy to contract for the first time in about 15 years, EFG-Hermes said yesterday.

Consumer prices in the United Arab Emirates, the second largest Arab economy, are also set to fall this year as the global financial crisis pressures rents and consumer demand, the Egyptian investment bank said in a research note.

“We believe the impact of the global financial crisis will be particularly harsh in Dubai, compared to the other emirates and the rest of the region,” EFG-Hermes said. “This is because of both the highly leveraged and externally facing nature of the Dubai economy.”

The closing months of last year were dubbed the Empty Quarter by mortgage companies, such was the dearth of business.

But the darkest times could be behind lenders, who are now reporting an increasing number of enquiries from people interested in buying property.

And most people expressing interest in buying property are professionals in the mid- to high-income bracket keen to take advantage of lower house prices.

But significant hurdles remain – with most lenders introducing strict criteria for applicants to meet, in a move to limit their exposure to an unsteady real estate sector.

"The last quarter of 2008 was the Empty Quarter as far as buyers were concerned," said Omer Ghani, CEO of Fine & Country UAE. "However, since mid-February we have seen a significant increase in the number of inquiries about buying."

Signs of recovery in the Middle East property market are emerging but prices will fall for the next 6 to 12 months, a new report from real estate adviser Jones Lang LaSalle said on Tuesday.

The study for the MENA (Middle East and North Africa) region said that requirements for recovery such as rising oil prices and improved liquidity through the recapitalisation of the banking sector in the form government bailouts has already begun.

Falling property prices presenting good deals for investors would stimulate much needed demand in the market, the report added, citing that transactions in Dubai have doubled over the last month to $500m up from $250m.

More than 50,000 homes will be built for Emiratis over the next 20 years, the Abu Dhabi Urban Planning Council (UPC) said yesterday.

Tens of thousands of Emiratis have applied for government housing and the waiting list is up to five years long, so the announcement was warmly welcomed and heralds much needed relief to a housing crisis that has resulted in spectacular rent increases and forced many people to commute from cheaper areas, such as Buraimi in Oman, on the border with Al Ain.

About 30,000 houses will be constructed in Abu Dhabi and 20,000 in Al Ain at an initial cost of AED 25 billion (US$6.8 billion) in the first three years.

Decline in land prices has led to a fall in construction costs while speculators avoid investing in plots due to new regulations from Dubai's Real Estate Regulatory Agency (Rera), said experts.

According to Rera, a developer has to pay 100 per cent of the land price if he wants to sell units off-plan. Besides master developers are also strictly enforcing regulations that tend to discourage speculators. Land contributes almost 25 per cent to the total cost of construction, experts said, adding decline in prices have led to lower construction costs.

"Land prices have reached attractive levels in different areas of Dubai as speculative activity has gone down substantially," said Robert McKinnon, Managing Director of Research, Al Mal Capital.

Ronald Hinchey, a partner at Cluttons, said: "Dubai's emerging foreign ownership market has corrected mid-cycle, which may be easier to manage than a major downturn in, say, 2012.

New residential areas such as The Springs, Jumeirah Lake Towers and Discovery Gardens are witnessing increasing interest from buyers and renters, according to a property website.

The findings of propertyfinder.ae are based on approximately 500,000 page visits to the website during February and highlights ongoing activity in the Dubai real estate market despite the economic downturn.

Commenting on the survey results, Marcello Sambartolo, Head of Marketing at propertyfinder.ae, said: "This survey has revealed some really interesting statistics. We are seeing a real shift in rental interest towards new residential areas such as Discovery Gardens and Jumeirah Lake Towers where rents are more competitive. There is still interest from end-users looking to invest in Dubai, which is now offering opportunities to capitalise on the recent drop in house prices."

Cityscape Dubai, the world’s biggest business-to-business real estate investment and development event, has broken new records with 40,000 visitors in the first two days - more than the three days of last year’s event.

“As a result of phenomenal public demand, we have extended the Cityscape Dubai 2008 opening by a further one hour each day until 8pm,” said Rohan Marwaha, Managing Director of Cityscape.

Cityscape Dubai, taking place at the Dubai International Convention and Exhibition Centre is now in its seventh year and has already been extended to a fourth day.

“By the close of this year’s event on Thursday night we are more than confident of breaking all previous records with more than 60,000 participants from virtually every country in the world,” Marwaha added.

Dubai’s property market has taken a beating but could emerge from the economic crisis stronger and more transparent, leading legal and financial experts have predicted.

They were taking part in the Cityscape Connect business breakfast ahead of Cityscape Dubai.

Attended by more than 150 property executives, legal advisers and investors, the business breakfast was called to explore the challenges facing the Dubai real estate market.

The initiative has been introduced to stimulate networking, transparency and open debate on the key issues affecting the Dubai real estate industry which has dramatically changed market dynamics and growth prospects since last year's Cityscape.

Lisa Dale, a partner in legal firm Al Tamimi & Company, said: “As we come out on the other side of the economic troubles we are in at the moment, Dubai will have a more regulated and much more transparent real estate system.”

Dubai’s property market has taken a beating but could emerge from the economic crisis stronger and more transparent, leading legal and financial experts have predicted.

They were taking part in the Cityscape Connect business breakfast ahead of Cityscape Dubai.

Attended by more than 150 property executives, legal advisers and investors, the business breakfast was called to explore the challenges facing the Dubai real estate market.

The initiative has been introduced to stimulate networking, transparency and open debate on the key issues affecting the Dubai real estate industry which has dramatically changed market dynamics and growth prospects since last year's Cityscape.

Lisa Dale, a partner in legal firm Al Tamimi & Company, said: “As we come out on the other side of the economic troubles we are in at the moment, Dubai will have a more regulated and much more transparent real estate system.”

Resolving issues linked to the residency status of expatriate property purchasers will provide a floor to the Dubai realty market, according to a new report.

"Measures such as a removal of the current link between employment and residency status, and a clarification of the law providing for residency for expatriate purchasers may be required to provide a floor to the market," Jones Lang LaSalle (JLL), a real estate advisory firm, said in a report titled "Dubai City Profile – A Review of the Dubai Property Market."

The report expects activity in the residential sector to slow further in the first half of the year as nervous investor sentiment coupled with lower rental rates will encourage residents to lease rather than buy. As investors continue to adopt the "wait and see" approach, landlords are also becoming more flexible with payment terms, accepting cheques on a quarterly or even monthly basis.

The UAE has 103 office developments underway worth a combined $10.62 billion, more than any other country in the Gulf Cooperation Council, a research report said on Saturday.

The report from Proleads, a Dubai-based market research company, said approximately 50 per cent of these developments in the UAE are due for completion this year, while the rest are expected to be finished in 2010.

The sudden drop in the prices of prime Dubai properties is drawing attention from real estate investors seeking attractive entry points.

"It is not so much that Dubai is gearing to attract more real estate funds into the market, but with property valuations becoming more attractive... investors are deploying more capital into the real estate sector," says Kerrie Alder, Head of Real Estate, Emirates Investment Services (EIS) Asset Management.

"The re-introduction of available financing will also further aid interested funds in due course," said Alder.

The Dubai Multi Commodities Centre (DMCC) said its expenditure on infrastructure development at the Jumeirah Lake Towers (JLT) will amount to Dh1 billion. Infrastructure development at the project is progressing and work on the remaining three lakes is expected to be complete by 2010.

DMCC reports that it has signed a Dh150 million landscaping agreement with Al Bayader Irrigation and Contracting Company for the Jumeirah Lake Towers development.

Bryan Wilson, one of the Executive Directors at DMCC, said the two-year contract will involve development of landscaping for the project and work will start within weeks.

"The amount being spent on the infrastructure development within the JLT will come up to Dh1bn. Including all the towers, the project will be a Dh20bn development," said Wilson.

A study by Landmark Properties has predicted that rents for apartments in Dubai will drop by 25 percent and villas by 23 percent. The report comes just days after the managing director of the Dubai Real Estate Institute (DREI) predicted rents would fall by up to 25 percent over the next 18 months. Dr Salem Al Shafiei also predicted that layoffs among sales and marketing staff in the real estate sector were likely to continue during 2009.

Published reports have claimed that a group of property investors has presented Dubai’s Real Estate Regulatory Authority (RERA) with a petition urging the watchdog to clamp down on "fly-by-night developers" who were unable to deliver projects amid tightening liquidity and project financing, even though they've taken down payments from investors.  The petition allegedly came from the Dubai Property Investors Group, made up of more than 300 local and international investors, lawyers and real estate developers.

An average price tag of $7,151 per square metre, makes Dubai fifteenth most expensive real estate markets in the world, according to a recent study.  That’s still cheap, though, compared to the leader: Monte Carlo, where a top-end apartment costs on average $47,578 per square metre.