Residential News
RERA 4-Tier Agency Rating System Announced
Dubai Real Estate Regulatory Authority (RERA) has implemented a new 4-tiered classification for real estate agencies and brokerages. This new system categorizes brokers, regulating what type of properties they can market and sell, and in what locations.
Hailed in a RERA statement as the “next stage of its strategic plan to implement a robust registration and licensing system to control and safeguard property sales,” many are welcoming the move to further bring clarity and accountability to the real estate market. As a continuation of the strategy which brought about escrow accounts and broker registration, the stated goal is to enhance the rights of buyers, sellers, landlords, and tenants and improve market activity.
The classification is broken down into four tiers, marked by colors. The top tier, Tier 1, is blue and allows brokers to carry out all types of activities anywhere in the emirate. One step down from the blue Tier 1 level is the yellow Tier 2, which allows for freehold transactions only in specified areas. Tier 3 is green, and permits brokers to sell only approved properties of certain developers or companies. Tier 4 is red, and allows only the promotion, sale, and rent of time share units. RERA’s online resources will be available based on this classification, so real estate agencies have access to services and property information within their sphere of operation only.
Better Homes’ agents are ready for this classification, as they have already been informally specializing in certain areas and will be formally categorized by November 1. This current specialization will ensure a smooth transition into RERA’s new system, and will guide Better Homes’ community categorization efforts.
Brokers can apply for the new license immediately through RERA or they can wait until their current RERA license expires. Benefits of the new program will only apply once the broker has obtained its new tiered classification.
To see currently available properties visit bhomes.com
Dubai Metro Opens to the Public
As most are well aware by now, the Dubai Metro has finally launched! Inaugurated by HH Sheikh Mohammed Bin Rashid Al Maktoum on the official launch date of 09/09/09, Dubai’s ruler actually scanned his ticket at 9:09PM. Starting from the following day, Dubai Metro has been open to the public, with 10 of the 29 Red Line stations operational.
Not only a massive logistical accomplishment, Dubai Metro has become an icon of the city, emblematic of Dubai’s continuing ambition. This opening has also been of keen interest to property firms and owners in the Emirate. Analysts have generally expected the Metro to be beneficial for Dubai property in general, and for certain communities and properties in particular. Apartments near the Metro stations have suddenly become more attractive, now that the Metro is operational. This has already manifested in slight increases (around 5%) for both sales and rent prices near these stations.
Of course, some have been confused by the openings of only select stations. Many thought that all Red Line stations would be operational on September 9, which was not the case. The remaining stations are expected to open periodically over the next 3-6 months, but some reports claim stations may take a further 9 months before they are open.
Not only is residential property becoming more attractive upon the launch of Dubai Metro, but commercial real estate as well. Porush Jhunjhunwala, a Commercial Leasing Manager with Better Homes, explains, “we have seen an increased demand for [commercial] properties along the metro line but there is no appreciation as of now. We have to wait and watch until the first quarter of 2010 to get the real picture.”
One of the biggest questions remains how successful the Metro will be at attracting passengers. With a very high capacity, some have questioned whether many people will actually ride it. As we got closer to the opening day, numerous polls were carried out, revealing substantial interest in frequent commuting. Abu Dhabi’s The National reports 110,000 individuals rode the Metro in the first two days of opening. However, it remains to be seen how many will make it part of their daily routine.
Click Here to view GulfNews’ Interactive Dubai Metro Guide
Better Homes Sees Best Leasing Month Ever!
Contrary to the worries of a massive exodus this summer, Better Homes celebrated its best month ever in August, with more lease transactions than any prior month in company history.
While sales volumes in Dubai have been moderately picking up over the past several months, leasing has been very busy. In fact, August enjoyed more than twice as many transactions as many months during early-mid 2008, when market-prices were still climbing. August doesn’t seem to be an anomaly, either, because May, June, and July all had relatively strong figures.
Some individuals and families have left for the summer, and it remains to see whether they will come back or if they are gone for good. However, there has been a significant inflow of new residents to the Dubai rental market. Internal records indicate that a third of these have been new entries from the UK, Europe and the US, who are mostly mid-level managers, a third from outlying emirates, and a third are current residents who are shifting internally as district prices drop.
In most communities, rental prices have stopped falling and are remaining flat. The most popular communities in Dubai for rent remain Dubai Marina (including JBR), Bur Dubai, The Springs, and Trade Centre. Top communities for sales are Green Community, Dubai Marina, The Springs, and Jumeirah Village (which has been gaining strong momentum in recent months).
To see current properties available for rent, click here.
New Century City Tower Opens Near Metro
With the launch of the Metro, interest has expectedly picked up for real estate located near the stations. For commercial space, having a location near a Metro station can be a great benefit for employers. New Century City Tower has recently opened, with a station literally steps from the front door.
Located opposite City Centre in Deira, New Century City Tower is an attractive new G+10 office building with great connectivity and enviable pricing. With a Metro station immediately in front of the building, employees will have an efficient and pleasant commute, and with four levels of underground parking, anyone who chooses to drive will be comfortable as well. From this location next to Le Meridien’s Al Sandood Suites in Deira, there is easy access to Dubai International Airport and Sheikh Zayed Road.
Offices enjoy large windows and four high-speed panoramic passenger lifts, and security and maintenance are provided 24 hours per day. Both retail and commercial offices are available. Offices start at AED 130/psf payable in 2 cheques per year with a contract period from 1-3 years. A 30-day rent-free fit-out period is also provided.
For more information or to schedule a viewing, please call +971 600 52 2212
Cityscape Approaches
Last year, Dubai’s Cityscape occurred upon the precipice of the global economic crisis, just three weeks after Lehman Brothers’ collapse. The booths were taller and brighter than ever before, though the question on everyone’s mind was surely, “What will Cityscape 2009 look like?” Well, the most iconic industry trade show of the year arrives now three weeks after Lehman’s anniversary.
Now in its eighth year, Cityscape Dubai is the largest property event in a series of large property events. With shows around the world throughout the year, the Dubai occasion is looked upon as something of a bellwether; if the most exciting real estate market is hurting, what hope is there for the rest of the world?
The organizers of this year’s events have done their part to manage expectations – everyone knows no kilometer-high towers will be announced. Many projects shown previously will likely have a booth, attracting more attention now that they’re further in development. The focus, however, is likely to be one of strategy and reflection. How do developers tackle finance constraints? What new legal developments are occurring in the emirate? How much will investors pay for luxury, in an atmosphere of restraint? These are the questions likely to come up at the booth discussions this year, which may be a bit more cozy as 30% of the space has been reduced from the previous show.
While the show will be smaller, interest has so far been relatively strong, with thousands of registrants already confirmed from over 100 countries. With the Metro finished and Burj Dubai looking almost ready for business, this year’s show may indeed emphasize not just what has been conceptualized, but what has been completed.
Visit the Cityscape website here
Grand Midwest Hotel Apartments
Fully-Furnished and Serviced Apartments in Media City
Perfectly located at the edge of Media City on Sheikh Zayed Road, Grand Midwest is a stunning new offering of studios, 1-bedroom, and 2-bedroom hotel-quality residences. Each apartment is beautifully furnished and fully serviced – you simply open the door, drop your bags, and you’re home.
Enjoy the following:
- Four-star hotel atmosphere
- Free twice-weekly laundry service and room cleaning
- Beautiful interiors and furnishings, fully-designed
- Fully-equipped kitchen, LCD TV’s, and designer layout
- New Metro station is immediately next to the building
- Usable conference hall, meeting facilities, and business centre
- Numerous restaurants, coffee shop, and breakfast bar
- Sauna, fitness centre, spa, two pools, and barber/beauty shop
- Numerous other complimentary hotel services
Exclusive pricing:
- Serviced Studios from AED 78,000 (4 cheques)
- Serviced 1-Beds from AED 85,000 (4 cheques)
- Serviced 2-Beds from AED 129,000 (4 cheques)
Click here to view a sample apartment.
