I am just back from 2 weeks in Dubai and have to report a significant uplift in confidence, road traffic, shopper traffic in shopping malls, car parking congestion, rental pricing in the property market etc etc, all lead to the conclusion that Dubai is well on the path to recovery. And the property estate agents are again buzzing around the bars and restaurants with new confidence and wealth.
Here is a small, but typical, comment from one estate agent in his August publication (he is a Palm Jumeirah specialist)
As we enter Q3 of 2011 I have to say that in general this year has been an amazing turn around in terms of sales activity on The Palm – compared to the same time 12 months ago. We have witnessed a massive increase in Villa sales and prices. And when I last checked with Dubai Land Department there had been a total of 103 Palm villas transferred – about 7% of the total. In just 6 months. And at prices up to 20% higher than 2010. This, alongside all the apartment sales we have witnessed, is surely very encouraging news for the future of The Palm.
This commentary is also true of the Marina and Downtown Dubai (where the Burj Khaliffa is located).
There has also been a spectacular new initiative by the Government to assist with the completion of partially or early stage completion developments where the Developer cannot access the money need to make further construction progress. It is under the ‘guidance’ of the Lands Dept and there is no doubt it brings new faith and comfort to local and overseas investors. It is not about supply increase anymore, investors now want their projects to be completed,” a spokesperson for the Lands Dept says.
He stressed that Real Estate Development plan will supplement other initiatives likes Tayseer (projects that have been guaranteed funding by the Government), which has already signed 48 projects. Majida Ali Rashed, Senior Counsel Strategy, DLD, said in March that the number of projects registered under Tayseer had reached 114.
Tayseer was launched in June last year with 40 projects in Business Bay, Dubai Marina and Jumeirah Lake Towers being approved in the first phase.
This new initiative and move will significantly boost liquidity in the market and bolster confidence in Dubai’s real estate sector
One word of warning for anybody intending to live in the UAE. Please ENSURE you get your National ID card. The Government are about to assault the market to ensure compliance and the penalties for non compliance are severe. It is also worth remembering that work visa’s are now only for a 24 month term.
One little story from last week – since I am being accused of not talking about my personal experiences in Dubai any longer (some readers still remember the ‘Igor Era’ !!). I am sitting in Dubai Immigration Dept (official business) waiting for ticket 2104 to be called when I receive this tap on the shoulder. Upon turning around I see this 20 something young Arab who asks if I would like him to review ‘my papers’. Never being one to upset a ‘Local’, I gave him ‘2104’s documents’.
He was obviously impressed that ALL documents were in order but then hit me with something that nobody really wants to hear ………. particularly at 8.35 in the morning. He looked at me impressed but sad …… ‘Yanny your paper is all very good but it big shame you have work this to immigration. It not right that OLD MAN need do this’. OUCH. Thankfully the rest of the day improved. And Khalid’s phone number is now in my directory !! Despite his ‘youthful’ Arab honesty.
A final piece of news from Dubai is that the Government finances are now ‘fully recovered’. Dubai is now officially about to get its credit rating upgraded – something very unique in the current global credit markets.
