Dubai Informer
Information about Dubai in all aspects
Monday, May 26, 2008
A new house rent index that will suggest benchmark rents for all the communities in Dubai, to be published soon by Dubai's Real Estate Regulatory Authority (Rera), is expected to reverse the gains of a seven per cent rent cap and turn the tables against the tenants in favour of the landlords.
The index will have separate prices for studio, one-, two- and three-bedroom apartments and villas in each community that will help landlords and tenants to benchmark their rents against the published rents in case of a dispute. It will also help the Rent Committee to settle the disputes.
"We are looking at a lot of factors. The index is a guideline for new people who are coming to Dubai," Rera chief executive Marwan Bin Galita told the media on Sunday.
It is hoped the pricing index will act as a comprehensive guideline to all tenants and landlords in Dubai. "The index will be introduced when we're confident that it's going to help the market," Bin Galita said.
By 2009, all new properties and rental contracts for commercial and residential units will be incorporated into a full database of rental agreements in Dubai, he said.
The new rent pricing index, designed to ensure that new people moving to Dubai have a clear picture of how much property is in specific areas, will help the market, he said.
Rising rents, jumping between 50 to 100 per cent over the last few years, have prompted Dubai Government to introduce a 15 per cent rent cap in 2005 - which was lowered to seven per cent - to help the emirate's marginalised middle income group.
The rent cap, which managed to stabilise the market to a certain degree, has come under fresh attack with landlords, who were trying innovative ways to bypass it, complaining that they are forced to rent out premises below the market price.
Elaine Jones, chief executive officer of Dubai-based property consultancy group Asteco, said, "It's a huge subject. There is so much disparity in the market now. Some tenants are paying more than double what other tenants are paying within the same building."
Growing fears
Analysts fear the new rent index will be used by the landlords as an excuse to bypass the rent cap. "This will provide another excuse to the landlords to bypass the rent cap," said a property analyst, requesting anonymity. "They have tried all tricks in the past. The rent index will provide the necessary tool for them to try and violate it."
Meanwhile, Bin Galita said there is enough housing supply in the Dubai market but the land is being held by greedy investors and real estate agents.
"There is enough supply in the Dubai market but because of greedy real estate agents or greedy investors, they are keeping the ground," he said.
"New projects are coming so people won't be able to leave their houses empty for a long time once the index is in place," he added.
The index will have separate prices for studio, one-, two- and three-bedroom apartments and villas in each community that will help landlords and tenants to benchmark their rents against the published rents in case of a dispute. It will also help the Rent Committee to settle the disputes.
"We are looking at a lot of factors. The index is a guideline for new people who are coming to Dubai," Rera chief executive Marwan Bin Galita told the media on Sunday.
It is hoped the pricing index will act as a comprehensive guideline to all tenants and landlords in Dubai. "The index will be introduced when we're confident that it's going to help the market," Bin Galita said.
By 2009, all new properties and rental contracts for commercial and residential units will be incorporated into a full database of rental agreements in Dubai, he said.
The new rent pricing index, designed to ensure that new people moving to Dubai have a clear picture of how much property is in specific areas, will help the market, he said.
Rising rents, jumping between 50 to 100 per cent over the last few years, have prompted Dubai Government to introduce a 15 per cent rent cap in 2005 - which was lowered to seven per cent - to help the emirate's marginalised middle income group.
The rent cap, which managed to stabilise the market to a certain degree, has come under fresh attack with landlords, who were trying innovative ways to bypass it, complaining that they are forced to rent out premises below the market price.
Elaine Jones, chief executive officer of Dubai-based property consultancy group Asteco, said, "It's a huge subject. There is so much disparity in the market now. Some tenants are paying more than double what other tenants are paying within the same building."
Growing fears
Analysts fear the new rent index will be used by the landlords as an excuse to bypass the rent cap. "This will provide another excuse to the landlords to bypass the rent cap," said a property analyst, requesting anonymity. "They have tried all tricks in the past. The rent index will provide the necessary tool for them to try and violate it."
Meanwhile, Bin Galita said there is enough housing supply in the Dubai market but the land is being held by greedy investors and real estate agents.
"There is enough supply in the Dubai market but because of greedy real estate agents or greedy investors, they are keeping the ground," he said.
"New projects are coming so people won't be able to leave their houses empty for a long time once the index is in place," he added.
Labels: Construction, Dubai, Properties, Society
Thursday, May 15, 2008
Dubai achieved another milestone as the first Metro train was successfully tested on Monday on part of the Red Line on Shaikh Zayed Road.
Motorists on the busy highway were amazed to see the train running on the track between Jebel Ali Industrial Area Station and the Jebel Ali Free Zone Station at the end of the Red Line.
Video: Click here to watch one of the first tests of the Dubai Metro train
Many stopped to watch what they have been dreaming of riding in the future.
"This is great. It's like a dream coming true," said Abdullah Abdul Rehman, a UAE national. He added that he would definitely park his car to ride the train.
Businesswoman Kiran Khan said she could not believe her eyes when she saw the train running on the track on her way to office. "It was awesome and I did not hesitate to pull over to watch this wonderful sight," she said.
The driverless train went back and forth several times yesterday during the test run. An official at the Dubai Roads and Transport Authority (RTA) said the train has been undergoing several tests for the last two weeks and its running on the track was part of the testing procedure.
He said this would continue for the next two to three months.
The test run yesterday was conducted on a right of way of less than a kilometre but it will eventually be extended to a 4-km stretch between Dubal Station (near the sixth interchange) and Jebel Ali Free Zone Station on Shaikh Zayed Road, Gulf News has learnt.
Coaches for the first train were put on the track on April 25. They were assembled and have been undergoing various technical tests.
Mattar Al Tayer, Chairman of the Board and Executive Director of the RTA, which is carrying out the Dh15.5 billion Dubai Metro project, had earlier said that the train would undergo full tests to monitor noise, wobbling and electromechanical compatibility for early detection of any trouble to address problems before passenger service starts on September 9, 2009.
The first stage, called the 'Static Test' phase, involved placing a stationary train on a track and performing tests involving communication systems, signaling systems, power supplies, air-conditioning, on-board electronics and lighting.
"The first tests have been conducted successfully and we are now testing it on the track," said an official.
The second phase is known as the "dynamic test" to run the train on the track without passengers on board.
It involves tests of various systems while the train is in motion, including propulsion and brake tests, load tests, traction power tests, electromagnetic compatibility (EMC) tests, automatic train operation (ATO) tests, communication tests and speed tests.
The train is operated with electricity using 'third power track' technology' - meaning the power will be supplied through the track. It operates on 750 volt DC power.
The Rail Agency has already installed the first Main Power Station (MPS-1) to provide electricity to the Red Line. A total of three MPS will be installed for back-up power.
Motorists on the busy highway were amazed to see the train running on the track between Jebel Ali Industrial Area Station and the Jebel Ali Free Zone Station at the end of the Red Line.
Video: Click here to watch one of the first tests of the Dubai Metro train
Many stopped to watch what they have been dreaming of riding in the future.
"This is great. It's like a dream coming true," said Abdullah Abdul Rehman, a UAE national. He added that he would definitely park his car to ride the train.
Businesswoman Kiran Khan said she could not believe her eyes when she saw the train running on the track on her way to office. "It was awesome and I did not hesitate to pull over to watch this wonderful sight," she said.
The driverless train went back and forth several times yesterday during the test run. An official at the Dubai Roads and Transport Authority (RTA) said the train has been undergoing several tests for the last two weeks and its running on the track was part of the testing procedure.
He said this would continue for the next two to three months.
The test run yesterday was conducted on a right of way of less than a kilometre but it will eventually be extended to a 4-km stretch between Dubal Station (near the sixth interchange) and Jebel Ali Free Zone Station on Shaikh Zayed Road, Gulf News has learnt.
Coaches for the first train were put on the track on April 25. They were assembled and have been undergoing various technical tests.
Mattar Al Tayer, Chairman of the Board and Executive Director of the RTA, which is carrying out the Dh15.5 billion Dubai Metro project, had earlier said that the train would undergo full tests to monitor noise, wobbling and electromechanical compatibility for early detection of any trouble to address problems before passenger service starts on September 9, 2009.
The first stage, called the 'Static Test' phase, involved placing a stationary train on a track and performing tests involving communication systems, signaling systems, power supplies, air-conditioning, on-board electronics and lighting.
"The first tests have been conducted successfully and we are now testing it on the track," said an official.
The second phase is known as the "dynamic test" to run the train on the track without passengers on board.
It involves tests of various systems while the train is in motion, including propulsion and brake tests, load tests, traction power tests, electromagnetic compatibility (EMC) tests, automatic train operation (ATO) tests, communication tests and speed tests.
The train is operated with electricity using 'third power track' technology' - meaning the power will be supplied through the track. It operates on 750 volt DC power.
The Rail Agency has already installed the first Main Power Station (MPS-1) to provide electricity to the Red Line. A total of three MPS will be installed for back-up power.
Labels: Dubai, Dubai Metro, Events
Thursday, May 08, 2008
Tatweer, a member of Dubai Holding, today formed a strategic alliance with Merlin Entertainments Group, the world's second largest visitor attraction group, to build LEGOLAND(R) Parks across the Arab world.
Tatweer and Merlin Entertainment Group announced the launch of LEGOLAND(R) DUBAILAND(R) - the first LEGOLAND(R) Park ever built outside of North America and Europe. The AED 912 million project, occupying a total of 3 million sq ft inside DUBAILAND(R), the world's largest leisure and entertainment destination, LEGOLAND(R) DUBAILAND(R) will feature more than 40 interactive rides, shows and attractions geared towards families with children ages 2 to 12 and will boost unique attractions geared towards families and children.
Saeed Al Muntafiq, Executive Chairman, Tatweer said: "We are extremely proud of our alliance with LEGOLAND(R) and Merlin Entertainments Group. The partnership once again demonstrates our dedication to deliver on the tourism objectives of Dubai Strategic Plan 2015 as we multiply our portfolio of entertainment offerings, contributing to transforming Dubai into a pioneering world class tourism destination."
"This alliance further consolidates Tatweer's status as the leader in developing the world's most enchanting entertainment concepts and bringing the best leisure and entertainment brands, such as Universal Studios, DreamWorks Animation, Six Flags, Marvel and HIT Entertainment to Dubai. LEGOLAND Park's global reputation in family friendly rides, shows, attractions and its strong appeal for family and kids will add a new dimension to our offering, providing an enhanced experience to visitors and tourists."
Nick Varney, Chief Executive of Merlin Entertainments Group said: "Merlin Entertainments Group branded visitor attractions, including LEGOLAND(R) Parks are well-known throughout the world as the ultimate destinations for families with young children. Choosing Dubai for the newest LEGOLAND(R) Park reflects the fact that Dubai is becoming a major holiday destination, not only for the region, but also for visitors worldwide. Teaming with Tatweer is the perfect way to offer families the LEGOLAND(R) experience and potentially other attractions within Merlin Entertainments."
Broadening the experience for families and visitors, Tatweer and Merlin Entertainments Group will additionally Advertisementwork together to develop new concepts, including LEGOLAND(R) themed hotels and possibly other attractions from Merlin Entertainments' extensive portfolio.
Currently, there are four LEGOLAND Parks: LEGOLAND(R) Billund, LEGOLAND(R) Windsor, LEGOLAND(R) Deutschland and LEGOLAND(R) California which was recently named Best Children's Park for the fourth year in a row by Amusement Today.
LEGOLAND(R) Parks offer families the opportunity to let their imaginations run free, and be immersed in LEGO(R) experiences with a unique mix of kid-powered rides, building challenges, spectacular LEGO(R) models, interactive attractions, family-friendly coasters and shows that pull the audience into the action.
Other projects owned by Tatweer at the Dubailand destination include, The Tiger Woods Dubai, Universal Studios DUBAILAND(R), Global Village DUBAILAND(R), DreamWorks DUBAILAND(R) Animation Park, Hit Entertainment "Little Big Club DUBAILAND(R)", Six Flags DUBAILAND(R), Marvel DUBAILAND(R) and FREEJ DUBAILAND(R).
Exciting attractions such as Dubai Sports City, MotorCity, Falcon City of Wonders, Al Sahra Desert Resort, the Polo and Equestrian Club, Al Barari and City of Arabia are also part of DUBAILAND(R)'s overall offering.
Tatweer and Merlin Entertainment Group announced the launch of LEGOLAND(R) DUBAILAND(R) - the first LEGOLAND(R) Park ever built outside of North America and Europe. The AED 912 million project, occupying a total of 3 million sq ft inside DUBAILAND(R), the world's largest leisure and entertainment destination, LEGOLAND(R) DUBAILAND(R) will feature more than 40 interactive rides, shows and attractions geared towards families with children ages 2 to 12 and will boost unique attractions geared towards families and children.
Saeed Al Muntafiq, Executive Chairman, Tatweer said: "We are extremely proud of our alliance with LEGOLAND(R) and Merlin Entertainments Group. The partnership once again demonstrates our dedication to deliver on the tourism objectives of Dubai Strategic Plan 2015 as we multiply our portfolio of entertainment offerings, contributing to transforming Dubai into a pioneering world class tourism destination."
"This alliance further consolidates Tatweer's status as the leader in developing the world's most enchanting entertainment concepts and bringing the best leisure and entertainment brands, such as Universal Studios, DreamWorks Animation, Six Flags, Marvel and HIT Entertainment to Dubai. LEGOLAND Park's global reputation in family friendly rides, shows, attractions and its strong appeal for family and kids will add a new dimension to our offering, providing an enhanced experience to visitors and tourists."
Nick Varney, Chief Executive of Merlin Entertainments Group said: "Merlin Entertainments Group branded visitor attractions, including LEGOLAND(R) Parks are well-known throughout the world as the ultimate destinations for families with young children. Choosing Dubai for the newest LEGOLAND(R) Park reflects the fact that Dubai is becoming a major holiday destination, not only for the region, but also for visitors worldwide. Teaming with Tatweer is the perfect way to offer families the LEGOLAND(R) experience and potentially other attractions within Merlin Entertainments."
Broadening the experience for families and visitors, Tatweer and Merlin Entertainments Group will additionally Advertisementwork together to develop new concepts, including LEGOLAND(R) themed hotels and possibly other attractions from Merlin Entertainments' extensive portfolio.
Currently, there are four LEGOLAND Parks: LEGOLAND(R) Billund, LEGOLAND(R) Windsor, LEGOLAND(R) Deutschland and LEGOLAND(R) California which was recently named Best Children's Park for the fourth year in a row by Amusement Today.
LEGOLAND(R) Parks offer families the opportunity to let their imaginations run free, and be immersed in LEGO(R) experiences with a unique mix of kid-powered rides, building challenges, spectacular LEGO(R) models, interactive attractions, family-friendly coasters and shows that pull the audience into the action.
Other projects owned by Tatweer at the Dubailand destination include, The Tiger Woods Dubai, Universal Studios DUBAILAND(R), Global Village DUBAILAND(R), DreamWorks DUBAILAND(R) Animation Park, Hit Entertainment "Little Big Club DUBAILAND(R)", Six Flags DUBAILAND(R), Marvel DUBAILAND(R) and FREEJ DUBAILAND(R).
Exciting attractions such as Dubai Sports City, MotorCity, Falcon City of Wonders, Al Sahra Desert Resort, the Polo and Equestrian Club, Al Barari and City of Arabia are also part of DUBAILAND(R)'s overall offering.
Labels: Construction, Dubai, Events, Holiday, Hotel, Properties, Society
Friday, May 02, 2008
When speaking about Dubai and the so-called "real estate bubble", conversations tend to focus on the short term. "What will happen in 2009-10 when projects are completed and handed over - will prices level off or even worse, fall?"
I can remember back in 2004 when people were asking those very same questions. The truth is at that point, nobody could have imagined what was to come and how far away from reality those concerns would prove to be! Since those early days of unpredictability, Dubai has gone from strength to strength.
That's why when it comes to Dubai; I prefer to look at the bigger picture. Rather than focus on the next two years, I think more in terms of decades and although it's a great place to be right now, I believe that Dubai really is a city for the future.
As a work in progress, I feel confident the finished product will be something very special, not only in terms of the great projects and developments, but in terms of its level of appeal from all angles; an international business centre, a leading tourism destination, a lifestyle city of choice, all helping to secure its long-term sustainability.
In the past, people have compared the Dubai market to markets like Spain, which also experienced a dramatic growth period, particularly with the sale of holiday homes. However, the reality is that Dubai has a completely different offering from those markets because its evolution is part of a greater dynamic; the entire region is developing.
One of the incredible things about Dubai is that the growth to date has been based on promises alone. It's only now that we are starting to actually see delivery.
The Dubai Government has committed to building the infrastructure of a modern city and we can already see improvements in terms of better road networks, the Dubai Metro and Dubai World Central. All such measures will ensure Dubai becomes a major transport centre for the region and a hub for businesses entering the growing consumer markets of the Gulf Cooperation Council (GCC), India and the greater region.
Global destination
The population is also set for rapid growth over the next few years and as a part of that, we may see an increase in migration from the US and Western Europe in response to the current financial climate in those countries.
Additionally, as projects such as Dubailand, Dubai Sports City and The Palm trilogy move forward, Dubai's reputation as a global tourism destination will be further enhanced.
The point is that you need to consider Dubai's global position in 15-20 years. At that point, it will be a city with a very large population and one of the most sophisticated infrastructures in the world, and by far the best in the region. It will be inter-connected to the rest of the world through trade, finance, logistics and tourism in a way that no other city is.
Through its infrastructure, services, lifestyle and global connectivity offering, it will become pivotal to the business success of regional and global markets.
For example, a major company in the US using Dubai to distribute tyres to the Middle Eastern and Asia sub-continent region, accounting for 40-40 per cent of its overall revenue, would base all its support services here and Dubai would play an essential role in its success. When you replicate this scenario over thousands of companies, Dubai becomes a very durable and robust marketplace.
So, even with a slow down in the property market, there wouldn't be any burst bubbles because real estate is simply facilitating the logistics, distribution and transport industries that are the true long-term engine behind Dubai's economy.
I can remember back in 2004 when people were asking those very same questions. The truth is at that point, nobody could have imagined what was to come and how far away from reality those concerns would prove to be! Since those early days of unpredictability, Dubai has gone from strength to strength.
That's why when it comes to Dubai; I prefer to look at the bigger picture. Rather than focus on the next two years, I think more in terms of decades and although it's a great place to be right now, I believe that Dubai really is a city for the future.
As a work in progress, I feel confident the finished product will be something very special, not only in terms of the great projects and developments, but in terms of its level of appeal from all angles; an international business centre, a leading tourism destination, a lifestyle city of choice, all helping to secure its long-term sustainability.
In the past, people have compared the Dubai market to markets like Spain, which also experienced a dramatic growth period, particularly with the sale of holiday homes. However, the reality is that Dubai has a completely different offering from those markets because its evolution is part of a greater dynamic; the entire region is developing.
One of the incredible things about Dubai is that the growth to date has been based on promises alone. It's only now that we are starting to actually see delivery.
The Dubai Government has committed to building the infrastructure of a modern city and we can already see improvements in terms of better road networks, the Dubai Metro and Dubai World Central. All such measures will ensure Dubai becomes a major transport centre for the region and a hub for businesses entering the growing consumer markets of the Gulf Cooperation Council (GCC), India and the greater region.
Global destination
The population is also set for rapid growth over the next few years and as a part of that, we may see an increase in migration from the US and Western Europe in response to the current financial climate in those countries.
Additionally, as projects such as Dubailand, Dubai Sports City and The Palm trilogy move forward, Dubai's reputation as a global tourism destination will be further enhanced.
The point is that you need to consider Dubai's global position in 15-20 years. At that point, it will be a city with a very large population and one of the most sophisticated infrastructures in the world, and by far the best in the region. It will be inter-connected to the rest of the world through trade, finance, logistics and tourism in a way that no other city is.
Through its infrastructure, services, lifestyle and global connectivity offering, it will become pivotal to the business success of regional and global markets.
For example, a major company in the US using Dubai to distribute tyres to the Middle Eastern and Asia sub-continent region, accounting for 40-40 per cent of its overall revenue, would base all its support services here and Dubai would play an essential role in its success. When you replicate this scenario over thousands of companies, Dubai becomes a very durable and robust marketplace.
So, even with a slow down in the property market, there wouldn't be any burst bubbles because real estate is simply facilitating the logistics, distribution and transport industries that are the true long-term engine behind Dubai's economy.
Labels: Construction, Dubai, Properties, Society
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