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Atomic P.

Atomic P. says:
3 months ago

18 Comments

DAILY REAL ESTATE NEWS

Atomic Properties will offer daily Property News Updates, please feel free to participate and offer your comments, suggestions or inquiries, we are more than a real estate and live up to serving your needs and beyond.
www.atomicproperties.org
Tel: 00971 4474188
Atomic P.
Atomic P. says:
3 months ago
1
Update 01.
You might have read the reports about Dubai real estate highlighting kick-start to recovery in 2012, but I would say, this is merely a predication based on “the feel good factor” of the property stakeholders. I believe property prices in Dubai have not shown any remarkable recovery in 2011, which reports show. These are just the sellers and owners of the properties who want to derive the prices up through rumours. The fact is property prices in Dubai are still not touching the bottom level but yes, we can say they are near to touch the bottom.

It is expected that the mid-2012 would be the time for Dubai real estate when prices of the properties will touch the bottom level in real. However, despite that recovery cannot be expected even after mid-2012 due to the heavy supply of the residential units expected to add to the market in the year. Some experts are even not predicating much demand as they think people are still hesitant to invest in Dubai properties. In contrast to what the reports highlight, the year 2011 remained another challenging year for Dubai real estate.

On the other hand, the prices of properties in Abu Dhabi are expected to fall by another 15% in the following year. On the other hand, rents in Abu Dhabi are also predicted to fall by another 10% during the year after which the recovery can be expected. Abu Dhabi property prices will continue to decline because the crises hit Abu Dhabi real estate late as compared to Dubai real estate and so this sector will also spring back to life late.

Average prices of the residential units in Dubai fell by 12% in Dubai where as in Abu Dhabi the average prices of residential properties dipped by 17% in the previous year. Apartments in both the Emirates showed overall decline in prices, except in just few good areas, where prices showed stagnancy. Prices of villas and their rents opposed to apartments showed slight increase in prices. Though overall in 2011, Dubai real estate prices declined but this is evident that the rate of decline slowed down as compared to the rate of decline we noticed in 2009 and 2010. Still if we look at the trend of prices in 2011, we cannot predict quick price recovery in 2012.

Prices are expected to continue their declining trend in 2012, unless they touch the bottom level. Once they will touch the bottom level in mid 2012, it is not necessary that they will start recovering. They can also remain stagnant unless demand originates and problem of over supply resolves to push the prices up.

James B.
James B. says:
3 months ago
2
That you Kabir? A rose by another name smells just as bad.

Perhaps sheikh-amr will have something to say about this article, as it has been copied and pasted from his blog?

Heres a link

http://www.realestatedubaiblog.com/author/sheikh-amr/

But by all means everyone should call a reputable sounding company like "atomic property" MWAAHAHH HAHAAH HHAAHHHAAAA!
Ummair B.
Ummair B. says:
3 months ago
3
well spotted James

Kabir...FFS ... GTF Away from here.
Delta4  .
Delta4 . says:
3 months ago
4
Please check the website if only to hear the worlds worst song
Atomic P.
Atomic P. says:
3 months ago
5
I entirely agree with your above statements,an article of this stature should be publicated more. I am also very glad to see some comments regarding my company, "But by all means everyone should call a reputable sounding company like "atomic property"" is actualy Atomic Properties, ignorance can be bliss to those who choose so.
Atomic P.
Atomic P. says:
3 months ago
6
Update 02.
Since 2008, despite the fact that property prices in few areas have shown good recovery, the condition of Dubaireal estate sector has remained abysmal. One group of experts still believe that better times are quite far because very soon Dubai property prices will experience a double dip. This predication is making experts to think that that there would not be anything to cheer aboutDubai real estate in the near future.

The slow down of the rate of the deceleration of property prices has shown that Dubaireal estate still holds potential to fight against oversupply and recovery would just take another year to kick start. Believing in the performance of the Dubai properties in 2011, one group pf experts are predicating marginal declines in property prices in the New Year 2012. This is because though almost 10700 apartments and 1300 villas are expected to add to the market in the next six months yet this supply would be steady and will match with the rising demand to bring more stability in prices.

Because of the regional unrest in other parts of the world, worldwide foreigners including those from the Arab countries are expected to raise the demand of the properties through out all the areas ofDubaiin the next year. Only the demand in poorly managed and low quality buildings is expected to remain less in few localities which can bring overall minor declines in property prices.

The strong signs of Dubaireal estate moving towards recovery have been noticed in all the four quarters of the year 2011 due to increased number of real estate transactions. If we look at the Dubai rental market, we will notice that the rentals have increased in all the prime areas ofDubai exceptInternationalCity, which showed slight decrease in rental rates. This overall better activity in 2011 has let experts to think best performance in 2012. They are of the view that even if the prices will fall, this decrease would be marginal.

Atomic P.
Atomic P. says:
3 months ago
7
Update 03.
Off plan properties are basically pre-construction properties that do not exist physically. When Dubai real estate was experiencing boom, the demand of off plan properties was at its peak. Many real estate developers traded off plan properties successfully and made good profits. But when the global recession hitDubai real estate sector in 2008, off plan properties were the first to suffer. This is because off plan properties are pre-construction properties and it was really hard to create their demand in the market when the buyers’ confidence even on the ready properties was very low.

Why to invest in Off plan properties?

Investing in off plan properties is a long term investment which yields greater profits without getting worried about the temporary slumps. The investors hoping to invest in off plan properties are basically the speculators who expect substantial capital gains on this investment. The developers who offer off plan properties normally offer discounts and other financial incentives to the early investors of the off plan properties. These incentives along with the capital growth make off plan property investment the most lucrative investment inDubai.

Things to look out for before investment

Though off plan property investment whether for buy or Dubai rental provides greater yields yet this investment is risky. In order to make a well informed decision, buyers must look out for certain things before making such investments.

Always keep in mind that off plan properties will bring high yields in long term. Currently as experts are predicating better times forDubaireal estate ahead, investing in off plan property would be a very wise idea. If you want to earn yields in short term, you should better consider investing in ready properties.
Before making an investment, always conduct a background check on the developer. Check out his reliability by looking at his previous records, the number of the projects he has delivered and check out if he has delivered them in time or not. You can also check out his reputation on the internet or can talk to its previous clients.
During bad times, many real estate projects were halted and even till today, in order to control the supplyDubaigovernment cancels various projects from time to time. So, make sure you visit the site of the construction to see the actual work being taken on the site. Stay away from the developers who show architectural pictures and maps to mislead the investors. Also check the status of the project from RERA from time to time.
Always try to invest in the property located near the central city. Many developers start projects at far off places which take double the amount of the time for completion than their normal time. Moreover, the capital gains on such Dubai properties are also less and their growth takes much time.
Dubai, Dubai Real Estate, Real Estate News, UAE Real Estate Sheikh Amr About the author
The author didnt add any Information to his profile yet
Atomic P.
Atomic P. says:
3 months ago
8
Update 03.

Off plan properties are basically pre-construction properties that do not exist physically. When Dubai real estate was experiencing boom, the demand of off plan properties was at its peak. Many real estate developers traded off plan properties successfully and made good profits. But when the global recession hitDubai real estate sector in 2008, off plan properties were the first to suffer. This is because off plan properties are pre-construction properties and it was really hard to create their demand in the market when the buyers’ confidence even on the ready properties was very low.

Why to invest in Off plan properties?

Investing in off plan properties is a long term investment which yields greater profits without getting worried about the temporary slumps. The investors hoping to invest in off plan properties are basically the speculators who expect substantial capital gains on this investment. The developers who offer off plan properties normally offer discounts and other financial incentives to the early investors of the off plan properties. These incentives along with the capital growth make off plan property investment the most lucrative investment inDubai.

Things to look out for before investment

Though off plan property investment whether for buy or Dubai rental provides greater yields yet this investment is risky. In order to make a well informed decision, buyers must look out for certain things before making such investments.

Always keep in mind that off plan properties will bring high yields in long term. Currently as experts are predicating better times forDubaireal estate ahead, investing in off plan property would be a very wise idea. If you want to earn yields in short term, you should better consider investing in ready properties.
Before making an investment, always conduct a background check on the developer. Check out his reliability by looking at his previous records, the number of the projects he has delivered and check out if he has delivered them in time or not. You can also check out his reputation on the internet or can talk to its previous clients.
During bad times, many real estate projects were halted and even till today, in order to control the supplyDubaigovernment cancels various projects from time to time. So, make sure you visit the site of the construction to see the actual work being taken on the site. Stay away from the developers who show architectural pictures and maps to mislead the investors. Also check the status of the project from RERA from time to time.
Always try to invest in the property located near the central city. Many developers start projects at far off places which take double the amount of the time for completion than their normal time. Moreover, the capital gains on such Dubai properties are also less and their growth takes much time.
Dubai, Dubai Real Estate, Real Estate News, UAE Real Estate Sheikh Amr About the author
The author didnt add any Information to his profile yet
Armani ~.
Armani ~. says:
3 months ago
9

Retarded...........

Delta4  .
Delta4 . says:
3 months ago
10
I would tell anyone in Dubai to NOT PURCHASE OFF PLAN

And also, who said you should post here more?
Atomic P.
Atomic P. says:
3 months ago
11
Update 04.
Whether you’re an experienced renter or a first-time tenant, finding that perfect place can be a daunting experience. Dodgy landlords, dubious maintenance and nightmare neighbours can all turn a dream home into a living hell. Here are some things to watch out for when renting property in the UAE

The neighbourhood

You’ve probably done some research on the different places you may want to live in, but nothing can beat taking a look at the surrounding community and communal areas. The following points are useful markers:

· What kind of condition are the service roads and parking lot in? Is it all properly finished and in good condition or are common areas still a work in progress (also known as 'a building site').

· What do neighbouring properties look like? Is there rubbish outside apartment doors, bad smells emanating from the floor below, children playing in the lifts?

· Talk to current tenants and potential neighbours & check out the chat on messageboards like expatwoman.com. If everyone in a community is up in arms about a specific issue then talk to people, online or in person, and get to the root of the problem to find out whether or not it’s a deal-breaker for you.

Parking

You may or may not have a vehicle, but if you don’t it doesn’t mean that parking issues won’t concern you. If there isn’t adequate parking for the number of properties then you may find access to your own property being blocked. There are a few tell-tale signs that indicate possible parking problems:

· Are there well defined parking spaces?

· Can you see cars double-parked or any cars not using designated spaces?

· Do there appear to be a lot more cars than you would expect? This could indicate that the parking area may get used by non-residents for nearby amenities.

Internal details

It can be so easy to go into a property and only see the bigger picture. It may seem perfect – good size rooms, light and airy, but don’t forget to pay attention to the little details. Paying a bit of extra attention can give you a good indication of how well the property really is maintained and whether you’re likely to having some recurring problems. Some things to look out for include:

· Do all of the electrical sockets in look in good condition, e.g. no cracks or bare wiring?

· Are the locks and other security features all in working order?

· Do there appear to be any suspicious stains on the walls or ceilings?

· If it’s a brand new property what is the general finishing like? Poorly finished properties could well have a host of issues that you can’t see.

Contracts

No matter how much you love that apartment or villa make sure that you view the contract before making any final decisions and certainly before parting with any money. Renting in the UAE requires a large sum of money upfront from the tenant so make sure that everything is legally in order.

· Is the landlord or agent happy for you to see a contract and take it away to review it?

· Is the contract specific about what is included, such as utilities and maintenance fees?

· Does it adhere to the laws relating to the Rental Increase Cap and notice periods for tenants?

The best way to avoid any potential renting upsets is to be prepared, do your research and don’t be afraid to ask questions. Any reputable agency or landlord will be happy to give you the information you need. You should also trust your instinct, usually if something doesn’t feel right then it isn’t.



James B.
James B. says:
3 months ago
12
BORING! BORED! BOOIOOOOOOOOOOOOORIING...................
Nabeel N.
Nabeel N. says:
3 months ago
13
Please go on Atomic Power...your posts are so incredibly insightful and entertainingly informative.
Atomic P.
Atomic P. says:
3 months ago
14
The number one mistake made by UAE property investors during the boom times of a few years ago was to believe that nothing could go wrong. This belief was shared by property developers who built (or planned to build) as if the golden years would stretch on and on.

Hindsight is a great thing and we all know now what happened.

During the boom, many investors failed to understand, or sometimes even read their contracts. Reservation forms were signed without firm contracts in place and buyers were pushed into signing on dotted lines ‘in case they missed out due to the extremely high demand’. As a result, lawyers have been presented with the near impossible task of recovering a client’s money when an agreement is clearly in the favour of the developer.

The most important lesson to be learnt from the painful fallout which followed the financial crisis is to conduct due diligence before making a decision to invest. Purchasing a property is a multi-faceted process and in order to make a sound investment, all angles must be examined in advance. This includes the choice of property, developer, real estate broker, payment terms and terms and conditions of the underlying contract.

Some simple rules to follow:

1) Conduct a thorough physical inspection of the property and consider hiring a surveyor to provide an expert view & educated opinion.

Chartered Surveyors, preferably RICS approved, can give a more precise figure of the value of a property, whether completed or uncompleted, than an estimated market price.

2) Confirm with Dubai’s Land Department that the developer and the project are properly registered.

3) Check that the payment terms for the property also comply with the laws. This includes purchase price and any other property related payments, such as maintenance and registration fees.

4) Investors should also be careful about the type of real estate agents they chose to work with and confirm that all payments are being transferred to the property owner and that all documents are signed prior to money changing hands. Only work with RERA approved agents.

Other mistakes to avoid:

Blindly trusting the fact that a developer and the project are registered with Dubai’s Real Estate Regulatory Agency (RERA). Registration does give you some peace of mind but it does not guarantee the developer or the project is financially sound. Keep in mind that RERA is a regulator, prescribes certain laws and ethics for market players to follow, but it is not a guarantor. Do your own research on a project and or/company before you commit.



Ummair B.
Ummair B. says:
3 months ago
15
feck
Nabeel N.
Nabeel N. says:
3 months ago
16
Sarcasm is lost upon the damned.
Atomic P.
Atomic P. says:
3 months ago
17
Update 06.

Here some real estate terms you may come across specific to the Dubai market:

LD
Abbreviation for Dubai’s land department, often see written as, DLD – Dubai Land Department but not correct

RERA
Abbreviation for Real Estate Regulatory Agency, this is Dubai’s authority to regulate the real estate sector with the land department.

Distressed Sale
Seller is desperate to get rid off the property to raise cash for whatever reason, selling far below market price.

Private Sale
No agency involved, privately advertised.

Built up area (BUA)
The gross floor space of the building measured as floor plate by height

BRN
Abbreviation: Broker Registration Number

DRN
Abbreviation: Developer Registration Number

CMA
Comparative Market Analysis

Class ‘B’ registered real estate brokers
Real estate agencies and brokers have to be licensed by the Real Estate Regulatory Agency (RERA) and will carry a number on their adverts and other correspondence. Each person working as a broker within an agency should have passed a RERA certified training course and carry as proof a corresponding broker’s card as an ID, name, photo, licensed activity. Report those who don’t carry it to licensing@rera.gov.ae

Class ‘A’ registered real estate brokers
Brokers registered on the official list, which do not require a license from the authorities, but are approved to operate by consent of the Ruler of Dubai and certified by the Chairman for exemptions of certain registration requirements

DED Activity Codes
Due to the different areas (around town) and specializations in real estate, the Department of Economic Development (DED) in cooperation with RERA classifies activities and hands out licenses accordingly. Always check that the person one is dealing with is duly licensed for the activity they are carrying out with both authorities. The professional broker’s ID should certify legality in the first instance.

Broker’s Special Register
This refers to By-Law (No) 85 of 2006, a log of all transactions carried out between all players in the real estate market (buyer/seller – owner/tenant etc.)

Escrow Account
Also known as trust or guarantee account, is the account where all payments towards a property should be banked. (This applies to developers and brokers). The account is overseen by the appointed account trustee of the bank where the account is held, which should guarantee the money is safe and only spent according to RERA guidelines to facilitate construction of a unit. In case of a completed property it can safeguard the money until the property and title deeds are handed over.

Establishment
Name of licensed real estate office

Exclusive Agent/Agency
As the term implies it refers to an exclusive relationship between one agent and one client regarding one property. In Dubai, exclusivity regarding an agent or agency taking on only one property has been rare, whether that is sales or rentals.

Open Listing
Respected agencies have in the past noted that rogue property dealers are the cause of many a deal falling through, trying to sell at unrealistic prices to get the deal, despite them not necessarily being able to keep this promise. Rogue dealers have been largely weeded out, several licensed agencies dealing with one property does provide competition. The recommendation is to only deal with licensed agencies and individual brokers to be on the safe side.

Multiple Listing
Some licensed agencies, however, agree to each market the same property but work together on showing it around. Brokers then split the commission.

Freehold
These are the areas where a foreign investor can buy property and own it outright without time restriction. Foreigners cannot own but only lease property outside those areas in Dubai. Note: In Abu Dhabi 99-year leasehold applies in freehold zones.

Free-zone
Not to be confused with freehold, these zones are reserved for the setting up of businesses also 100 percent ownership. There are some areas like Jumeirah Lake Towers, which is a mixed freehold/free-zone, so both zones’ rules apply.

FSBO
Abbreviation: For Sale By Owner

EJARI
Ejari is the on-line system where landlords should register the tenancy contracts. Tenants cannot register contracts themselves and should therefore ensure the landlord complies. Failure to do so could raise issues in case of disputes.

Rent Committee
Rental disputes, as long as registered in Ejari, are heard by this committee, which falls under Dubai Municipality. It has proven very useful for tenants regarding evictions connected with an unfair rent raise. More info can be found in legal terms explained.

Rental Index
Created by RERA on its website to give a guideline to what rent is fair in what area. In practice maybe not the most reliable as it’s based on registered contracts only. Some landlords don’t register contracts and secondly it reflects pre-boom, boom and post-boom contracts. This means prices registered vary wildly. Although it seems that the index follows what reputed agencies are publishing as a medium rent. The rent committee will take the index when taking decisions.

Tip: Our 'market price live' tool will also give you the average listing price for a property type in a specific area. Take a look here.

Land Register
The land department holds the electronic records proving land ownership and registering transfers since its existence.

OQOOD (Interim Real Estate Register)
Is the register, also overseen by the land department, where off-plan property must be registered to protect the sales & purchase agreement (SAP). Registration fee is Dh1,000 (subject to change). The developer usually takes care of registration but may pass the fee on to the buyer.

Title Deed
Proof of outright ownership of a property after it has been fully paid off provided by the land department. It should include parking spaces, where applicable. Fees: two percent of purchase or market price. By law developer and buyer share the fee, in practice the buyer may have to pay the full amount depending on what is specified in the SAP.

Tayseer
Selected projects by RERA, with a construction progress of minimum 40 percent. The government is confident in backing these projects to a certain extent fostering timely completion.

Ijara
Islamic lending institutions, such as Tamweel and Amlak, finance a property under Ijara, treated like a mortgage but it isn’t the same as with a conventional bank. The reason is the structure, as making profits on interest is not allowed in Islamic financing. It works out to be pretty much the same than a mortgage, but terms are different. The property is essentially leased to the buyer (loan holder). It could throw up questions in regard of registering in Oqood as legally it’s a leased property, not a bought property.

PDC
Abbreviation for post dated cheques, these are very important in the Dubai real estate market, as PDCs are used in sales and rentals as a guarantee of future payment. Therefore, risking default on a cheque can have serious criminal consequences. Some brokers, such as Landmark Properties, have started a new mechanism whereby tenants can choose to pay rent by credit card.

Quantity Surveyor
Quantity surveying is a profession in itself, costing projects under development and completed ones in regard of cost of renovation.

Valuation (registered valuer)
A valuer will, as the word says, value the real worth of a property taking market prices and the circumstances of the individual unit into account. This sector is under constant development, currently focused on achieving a unified standard of measurement for all properties.

Real Estate Activity
Authorities use this term to describe all activities/professions related to the sector.

Real Estate Development
Refers to the development of new real estate

RRN
Abbreviation: Rera Reference Number printed on all official RERA forms, downloadable from their website www.rpdubai.com

Sellable Area
The gross square footage area of a unit for sale, excluding common areas

STR
Abbreviation for Special Transactions Register

Standard Forms
Standardized official forms related to real estate transactions in Dubai

Sub-developer
A developer of individual buildings within a master-development, they must adhere to the norms of the master-community when constructing.

Master-developer
The developer, who is in charge of developing a master-community with all its facilities and utility connections. Often they also build their own individual development within.

TLBO
To let by owner

Transfer settlement
The final payment to transfer ownership of a property, which until then remains under contract

Un-Conditional sale
A sale of a property usually as seen and often used in cash sales

Service or maintenance fees or charges
The fees raised to maintain the building, including security

Chilling or cooling fees
The fees raised by district cooling companies to provide chilled water for air-conditioning

Master-community fees
Fees raised by the developer to maintain and develop common areas, as well as rubbish collection etc.

Mixed-use development
A community with multiple use, can include residential, offices and retail

HOA
Abbreviation for home-owners associations, increasingly registered to take over management and raise the fees to maintain buildings and master-communities

REIT
Abbreviation for real estate investment trust

ROI
Abbreviation for Return on Investment

Yield (rental yield)
Often used to refer to what profit/ROI a property can achieve per year comparing achievable rent and property price (value) – should include outgoings like service fees



 
Atomic P.
Atomic P. says:
3 months ago
18
Please call: 04-44474-188 for any inquiries.

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Atomic Properties go beyond other real estates to serve your needs. Be treated as Number 1, Always!!

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