Better Homes News
Lease at Rotana’s Park Residence in Abu Dhabi
Better Homes in Abu Dhabi has secured a lease agreement with Arjaan Rotana for its new project, Park Residence.
Park Residence, developed by prestigious Rotana, is a modern residential development adjacent to the 5-star Park Rotana Hotel. The project offers convenient living with fully equipped kitchens, swimming pool, gym and security within a hotel complex. Ideal for both executives and families, this new development offers spacious apartments with excellent finishes and undercover parking.
Located in Khalifa Park (Maqtaa Bridge area of Abu Dhabi), Park Residence is close to the business and banking district, schools, and shopping malls, and is only 10 minutes away from the Abu Dhabi International Exhibitions Centre and 20km from the International Airport. The project has easy access to the major road networks in the area, providing efficient transportation throughout the emirate.
Park Residence will be handed over on September 1, 2009. This is a great opportunity to lease your new home in the heart of Abu Dhabi. For all leasing enquiries, please contact a Better Homes leasing consultant on +971 600 52 2212.
The Great Return
There is currently a substantial migration from surrounding emirates into Dubai. Just as residents moved further from Dubai as rents increased, now they are returning as rents have fallen. For those who had been unable to live in the emirate previously, this is a happy development.
Perhaps the most visible evidence of this phenomenon is the surge in interest for International City from Sharjah residents. As their leases expire, they now have a strong incentive to relocate into Dubai, cutting down substantially on their commute times which had been notoriously burdensome for Sharjah residents working in Dubai. Indeed, current prices in International City can be found below prices in Sharjah from several months ago, so unless one prefers Sharjah for cultural reasons, the opportunity to live closer to work and closer to all the attractions in Dubai is very compelling.
“Dubai is further proving itself as the business hub of the UAE,” says James Gauduchon, Head of Marketing for Better Homes, “it is the epicenter to which people are drawn for economic or lifestyle reasons. As the city becomes unaffordable, residents must move out to the periphery, but when prices come down it’s no surprise that a great return begins.”
Many movers have also come from Abu Dhabi because Abu Dhabi space is still so hard to find and rents are not nearly as attractive. The reason for moving is somewhat different, because Abu Dhabi is still more expensive than Dubai, unlike Sharjah wherein prices remain perpetually below those in Dubai.
“What we understand is that UAE residents, for the most part, want to live in Dubai for its lifestyle, attractions, and infrastructure,” continues James, “as big projects in Dubai have gone from the idea stage to completion, the emirate is becoming what it had previously promised. Many of the most attractive projects in the other emirates are still far from completion and Dubai is benefiting from its first mover advantage.”
Amidst the economic downturn and the uncertainty surrounding property markets, the ability to return to Dubai is a welcome prospect for many residents who now get to enjoy life closer to the city in which they work and play. Similarly, the migration is a strong vote of confidence for the emirate during this volatile year.
Interested in relocating? Visit bhomes.com to browse available properties.
New Six Month Visa Law Examined
One of the biggest pieces of recent news was the announcement and confirmation of the new Dubai residency visa law. This law allows owners of property worth over AED 1 million to obtain a six month, renewable residency visa. While the new law was generally welcomed, many have wanted further details. Ameya Salatry, Better Homes’ Head of Legal, answers some of the most common questions:
1. Are the six month visa and its various conditions enough to entice people to buy property and help revive the market? Reasons why/why not?
Yes- The visa will ease travel for investors from India, Pakistan, Iran and Russia, who had faced tighter visit visa rules in the past. Now, they will be able to visit frequently to manage their properties.
No- Those who want to buy property here or have already purchased property in the UAE often want to stay here longer than six months at a time. Leaving the country just to come back is understandably seen as an inconvenience for investors. Some owners plan to own property for 20 to 30 years, so six months’ permission to stay is problematic.
We expected the visa to encourage foreign investment into the nation’s real estate sector but the visa should have had a longer time frame and without a restriction of being tied to a property value. This is a step in the right direction but is probably not far enough to allay investors’ concerns.
2. Why do you think the Government limited it to six months and imposed several conditions? Could they possibly be worried about a flood of applications?
Yes we feel partially that is the reason. Although this is fundamentally a move to clarify speculation over this regulation and to bolster the real estate sector, the Government wants to be very careful in streamlining visa applications at the backdrop of immigration rules in the UAE.
3. To what extent does the AED 1m minimum property value price out those people who would benefit most from having the residency visa in the first place (i.e. the less well-off)?
The AED 1 million minimum property value as a precondition may indeed be problematic because (a) the property values have fallen; and (b) foreign investors wishing to invest and obtain visas may not look upon this condition as a suitable one, in the midst of an ailing economy. Regulating residency permits on the basis of property value is also bound to create illegal “workaround” solutions where buyers technically pay over 1m but then work out a deal with the seller to get the money back somehow. In our opinion, this minimum level should be revised or removed from the visa regulation.
4. To what extent does the condition of having to earn a minimum salary of Dh10,000 while holding the residency visa eliminate the very reason for having it?
Foreign investors need to prove that they earn a minimum salary of DH 10,000 in order to avail the 6 month visa benefit. Foreign investors can only obtain visa if all of the requirements including the one above are met.
The visa does not give the owner of the property the right to work in the country. In that, the requirement of DH 10,000 as salary condition would be an obstacle in the event an investor looses a job and cannot prove his wages to avail to this visa. It defeats the purpose in that sense. However, we feel the legislative intent is twofold; (a) to attract foreign investors in the foreign countries to hold properties in the UAE and visit the country to manage the same and (b) for foreign investors who already reside in the country and who can fulfill all of the requirements for the visa application to have benefits of the visa to own and manage properties in the UAE..
The purpose is not to guarantee an investor a 6 month visa in the event of falling circumstances like loss of employment, unfortunately.
5. Does the visa have the potential to develop the UAE’s property market as a retirement or second home destination?
We do not feel so, because people in the retirement and second home category normally look for a longer option or prefer to avoid fulfillment of visa conditions which in the present case would have to be met on a recurring basis of every 6 months. The visa works well for seasonal visitors, but not for anyone who wishes to make the UAE their home.
6. If you own two properties that add up to more than Dh1m, do you qualify for a residency visa?
We do not have the text of the law to answer this question, but we feel it would be applicable only for a single unit or apartment.
7. If the property is initially below Dh1, but rises in value, do you qualify for a visa?
You would qualify for a visa once it touches Dh 1 Million or more in value, not before that.
Note: The above is for indicative purposes only and should not be construed to mean legal advice or interpretation of the law. We do not guarantee the accuracy or correctness of the information provided herein above.
For more information on the current regulations regarding property ownership in the UAE, please visit bhomes.com or speak with a consultant at +971 600 52 2212
Grab your copy of State of the Market 2009
On Wednesday, April 29th Better Homes launched its State of the Market 2009 report to the public. This report, weighing in at over 100 pages, analyses the fundamentals of the Dubai real estate market, recapping 2008 and projecting pricing trends over the coming few years. The report covers residential sales and leasing, commercial sales and leasing, hospitality, and retail along with some global and regional macro-economic issues.
To develop the report, Better Homes partnered with the research expertise of Investment Boutique, working for the past several months to develop a comprehensive examination and forecast of the Dubai real estate market.
“The report has been quite successful,” states Ryan Mahoney, Managing Director of Better Homes, “ we’ve had interest from a wide range of individuals and corporations including HSBC, BASF, EM Credit, Al Futtaim, and Boston Consulting Group to name a few. Partnering with Investment Boutique has provided some valuable insight into where the Dubai market is headed. We know many people were skeptical of a real estate agency releasing a market report, but having been in Dubai for over 20 years Better Homes benefits much more by bolstering its reputation as a source of trustworthy information. I think State of the Market is evidence of this and it would be hard to argue that the report paints an unrealistic picture.”
State of the Market 2009 is organized into four sections, which can be purchased individually or all together in the Full Report. Each section contains a brief review of the past year, an examination of relevant market variables (supply/demand, delays, demographic changes), and a forecast of 2009-2011.
Click here to purchase and download your copy of State of the Market 2009
The Short-term Alternative
Better Homes Short-term Rentals has always offered a unique service – attractive both to those landlords who want flexibility and to tenants visiting for business or holiday breaks who required a “home away from home” at a reasonable price. Now, however, a new type of tenant has arrived.
In certain locations, short-term furnished accommodation is now more cost effective to the tenant than a long-term lease – and provides not only the inclusion of utilities and weekly housekeeping, but also the flexibility of not committing to a location. In the past few months, this has been highly attractive to the many residents who are “waiting to see what happens” regarding employment.
“This short-term solution has been attractive for long-term residents who are either waiting for rents to drop or for their companies to finish restructuring,” says Janine Crisp, Head of Short-term Rentals within Better Homes, “With reduced numbers of business and holiday travelers, short-term rents were bound to drop. The result of this is that many residents are moving into short-term accommodation while they wait and see what happens in the market.” As evidence of this phenomenon, Better Homes experienced a 200% increase in short-term transactions in April.
As for the landlords, they have been generally satisfied with the situation. While their revenue per property is dropping, their rooms are staying full and this has prevented them from feeling the need to reorganize their property portfolio strategy (which can be a costly and time-consuming process). “The landlords have been great to work with,” says Janine, “they understand the need to reduce prices in order to maintain occupancy. This is all part of the market adjusting.”
Great short-term deals currently available:
Studio in Marina Diamond 3 – AED 7,000 per month
1 bedroom in The Greens – AED 9,000 per month
2 bedroom w/ study in JBR – AED 14,000 per month
Click here for more information about furnished short-term rental solutions.
Preferred Partner Directory
On May 1st Better Homes launched its Preferred Partner Directory, which provides BH customers with an evolving directory of high-quality service providers. Because the needs of Dubai’s residents don’t stop after they find their new home, the Preferred Partner Directory will give them access to reliable companies ranging from home products to medical care to entertainment.
“We launched this directory recently to start building a network of reliable partners,” states Emma Cullen, who has developed the program at Better Homes, “our Customer Care division gets a substantial number of calls from our property clients who, after moving into their home, suddenly realize they need to get furniture, appliances, carpet or curtains, or even set up a mechanism to cost-effectively send money to their home country. Our Directory will help them with all of this and will keep growing and evolving over time.”
From furnishings to banking to office fit-out and even water suppliers, the Preferred Partner Director is a great way to connect with reliable products and services in the UAE.
Check out bhomes.com/partners for more details.
