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Dubai plans real estate regulator bill |
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The draft bill for regulating real estate in Dubai, aimed at giving more powers to investors and promoting a transparent and competitive real estate market is being fine tuned by the Dubai administration. The administration is keen to introduce a system where investors will have the power to cancel their contracts if developers fail to fulfil their promises.
The move is aimed at restoring investor confidence in Dubai's real estate market, which fell considerably in 2009. The Land Department of Dubai is finalizing the investor protection law for real estate, which is expected to attract more investors to the real estate sector. After the market crash, Dubai is moving towards greater transparency in this sector.
Real estate investors want security for their money before making any investments in the region. They are adopting a cautious approach before making any fresh commitments.
The present law did not provide any specific regulations concerning cancellation of agreements in cases where developers fail to keep their word. The proposed law is expected to provide more security for investors. The move is expected to bring stability to the market and preserve confidence of those investors who were hit by the impact of Dubai's real estate crash.
Dubizzle - Thursday, 25 March, 2010 - 19:31 |
Bricks and mortar will always have core value, industry expert says
- A near-completed high-end water front property development at the Sentosa Cove in Singapore.
- Image Credit: AFP
Dubai: Financial and real estate experts agree that investors — wherever they are around the world, should make property a part of their diversified portfolio.
Property has long been viewed as a strategic investment that can ride out economic cycles. Historically, investors in the UAE hold the asset class high in their portfolios, as it offers the potential for higher returns and exhibits "brick and mortar" characteristics that are not found in intangible assets like securities.
"Property has been an attractive and good performing asset class and offers the potential for high capital appreciation as well as attractive yields…The returns can be quite dramatic as investors have the ability to leverage easily and rely on future earnings to repay the debt," says Ishrat Kiyani, UAE head of premier banking and wealth management at HSBC.
"For instance, if you invest $100,000 [Dh367,203] into a stock portfolio and it doubles in value, you make a profit of $100,000. If you buy a property for $100,000 and borrow $80,000 to facilitate the purchase, and the property doubles in value, you make a profit of $100,000 from only a $20,000 outlay," he adds.
Kiyani, however, says that property can be considered a cautious and very high risk asset class, and just like any other investment, has its pros and cons. He notes that properties in established markets like central London will be much less volatile than the ones in less established markets like the Middle East.
"It is important that people understand the risks and limitations of property such as its illiquidity, rent voids or defaults and cost of leverage. Furthermore, property can be expensive to buy and sell, and prices can be massively distorted by sentiment," he adds.
Jesse Downs of Landmark Advisory says it is the tangible nature of property that makes it appealing to investors, even during a downturn.
Property assets should appeal to investors during down cycles. Real estate is typically an asset that an investor should be prepared to hold for five to seven years, if necessary. Generally, property cycles follow a similar time frame. Rationally, buyers should be buying during a down cycle and holding," Downs says.
In any investment life cyle, Elaine Jones, CEO of Asteco Property, notes that there will always be peaks and troughs. At certain points, market fundamentals will change, making the equity markets look more favourable than property, and vice versa. As to why property still appeals to investors during a recession, Jones cites the real estate's bricks and mortar factor.
"The old adage that there is nothing safer than bricks and mortar still rings true. During the last downturn, we have seen a number of investors lose hundreds of millions through the liquidation of shares and companies. Provided an investor has the capacity for a long-term view and is canny in their choice of property investment, then bricks and mortar will always have a core value. It all boils down to spotting end-user demand, regardless of what asset class is being invested," she says.
By Cleofe Maceda, Staff Reporter | Published: Gulf News April 10, 2010
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PowerHouse Boss Remains Positive about Dubai Property Market |
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Recent negative reports will only have temporary effect on property sales says Bush
(Dubai, December 1, 2009): Dubai’s end user property market will continue to improve despite recent negative media reports says Myles Bush, boss of real estate agent PowerHouse Properties.
Property prices in Dubai increased by seven per cent in the third quarter of 2009, the first price rise since the market fell from its peak twelve months earlier. The number of real estate transactions rose 64 per cent during the third quarter of 2009 indicating a 'bounce' in the market, which property owners hoped was a fully fledged market recovery.
And, with 2009 profits of PowerHouse Properties already up 55 per cent on 2008’s total, the brokerage has doubled its workforce over the past six months and moved to a larger office in Al Barsha, Dubai.
“We are performing so well simply because people are buying property in Dubai again. Confidence is returning to the market and the recent news is unlikely to stop the market moving upwards,” says Myles Bush, managing director of PowerHouse Properties.
“We have encountered most transactions within the high end market, especially in areas such as the Palm Jumeirah and Emirates Hills and enquiries are increasing as we approach 2010.
“I predict the end user property market will go from strength to strength next year. The financial issues concerning Dubai World have been well documented by media throughout the world but I truly believe the repercussions for Dubai’s recovering property market will not be significant.
“The only slight concern is that some buyers may be put off again as happens during times of uncertainty, but this should only have a minor and temporary effect on the property market here. Dubai’s residents always need a place to live and many are taking advantage of lower prices to trade up to bigger and more luxurious homes.
“I believe in Dubai and am very confident about its property market in the long term. Homeowners can sleep easy as people continue to flood to Dubai and the end user market remains active, albeit without the huge premiums seen during the boom years,” adds Bush.
Originally from England, Myles Bush has sold real estate in Dubai over the past four years, working primarily with high net worth clients. PowerHouse Properties currently specialises in end-user properties such as Emirates Hills, Greens and Views, Palm Jumeirah, Springs and Meadows. Based in Barsha, PowerHouse Properties has 18 sales professionals from Europe, Asia, Australia and the Middle East. |
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End Users are Key to Real Estate Success |
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End Users are Key to Real Estate Success
Says boss of new real estate agency – PowerHouse Properties
(Dubai, November 20, 2008): Providing top level service to the crucial end-user market is the key to success for Dubai’s struggling real estate brokerages, according to the owner of a newly launched real estate agency.
“Agents now need to work for their money, instead of being merely order takers. Only those providing the best service to the end-user market will succeed in the foreseeable future,” Myles Bush, managing director of PowerHouse Properties, explained.
"Property sales will continue to happen in growing cities like Dubai for as long as people require a roof over their head. However, times have changed and buyers will be more selective in what they buy, what they pay, who they trust and the service they expect.”
According to HSBC Bank, Dubai property prices fell 4 per cent in October 2008, with villas falling by 19 per cent in four weeks from September 2008. According to HSBC property prices in Abu Dhabi have even started falling, with prices down 5 per cent in October 2008.
But Bush claimed that opening PowerHouse Properties while brokerages in Dubai are laying off sales agents is not a risky strategy.
“I believe in Dubai and am very confident about the market in the long term. Many agencies had become complacent during the good times and now, as competition heats up, brokerages have started to struggle, allowing PowerHouse to ‘cherry pick’ the best and most experienced agents out there.
“Many agencies aggressively accumulated the largest sales team they could, as quickly as possible and, as a result, they are now experiencing problems in the current climate.
“We have attracted twelve of the most professional, energetic and trustworthy RERA trained agents in the market by offering them higher commissions. I believe it’s only through offering this level of expertise that an agency can do well during this difficult period.
“Nobody can predict the future, but I personally believe the market in Dubai will pick up again early in 2009. A slight correction was inevitable and the global situation has acted as a catalyst. With the exception of off-plan developments, such as the Palm Jebel Ali, homeowners can sleep easy as people will continue to flood to Dubai and the end user market will continue to prosper.” |
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