Abu Dhabi and Dubai Public Housing Issues

Both Abu Dhabi and Dubai are currently facing the issue of lack of housing for the local population. It is ironic when you consider the enormous amount of construction that has taken place there over the last few years.

Most of this construction has, of course, been aimed at the luxury and tourist markets, leaving a big gap in the middle to lower income brackets.

Abu Dhabi

A shortage of 20,000 housing units by the end of the year could increase inflation and raise the cost of living in Abu Dhabi further, according to a recent study. The solution is to freeze prices, according to the study, released by the Abu Dhabi Chamber of Commerce and Industry. Here are a few snippets from the report:

“In 2008, housing projects will target highly paid executives while people with low and medium income will be affected by the shortage and high rent.”

“The housing shortage will inevitably increase rents and put more stresses on people who pay more than 40 per cent of their income in housing.”

The population of Abu Dhabi increased by 100% over the past few years causing the shortage to become acute. “In 2005, the supply and demand was levelled and there was no shortage in housing. In 2006, there was a shortage of 3,000 units. By 2007, the shortage rose to 8,000 units,” the report said.

While the direct impact may be an increase in the cost of living, the report said the shortage could ultimately create a vicious circle that could affect the overall performance and competitiveness of the country.

Despite dozens of housing projects underway in the capital, the Chamber says this will not meet more than 20 per cent of the shortage.

According to the report, the solution to this ever-growing problem is to freeze rent prices for two years, to develop a housing plan to meet low and middle income demands and to encourage the private sector companies to create some low income construction.

Khalfan Al Ka’abi, chairman of the Chamber’s construction committee disgreed, oddly enough, and said freezing rents would only bring more chaos. “Freezing the rent is a very bad solution because this would freeze all investments. The solution is more units. More units will inevitably cut down prices,” Al Ka’abi said.

While the concept of freezing rents may sound idealistic to renters. Ka’abi says this move would discourage developers from building.

“We need to motivate more investors. The solution is that the government needs to give more land and the developers to build more. There needs to be a better platform where more developers can build. You can not just depend on master developers who will build cities and islands. The government must encourage all sizes of developers,” Al Ka’abi says.

According to previous chamber reports, the ideal annual rent should not exceed 25% of a yearly income, but the average person currently pays more than 40 per cent on housing alone.

“Salaries have gone up but they have been consumed by an increase in the cost of living so we are back to where we started. Once the supply matches the demand that’s when prices will start to level,” Al Ka’abi said.

Similar problems are being faced in Dubai, although they are taking a more pro=active approach.

His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, recently announced the construction of 40,000 villas for nationals in the country.

After a whirlwind tour of the country’s central and eastern areas, Shaikh Mohammed said that Dh15 billion will be earmarked for the new housing program for nationals that embraces the whole of the UAE.

He issued directives to the Minister of State for Financial and Industrial Affairs. Shaikh Mohammed also said that he has instructed the Ministry of Social Affairs to immediately double the budget for social assistance allocations for nationals to Dh2.2 billion. This reaffirms his desire to see that citizens benefit from this program and achieve a better lifestyle.

Shaikh Mohammed also said that a cabinet reshuffle was on the cards next month.

He was accompanied by Mohammed Abdullah Al Gergawi, Minister of State for Cabinet Affairs, Dr Mohammed Khalfan bin Kharbash, Minister of State for Financial and Industrial Affairs, Sultan bin Sulayem, Chairman of Dubai Ports, Shaikh Hamdan bin Rashid Al Maktoum, Chairman of Dubai Executive Council, and Editors-in-Chief of Arabic and English newspapers in the UAE.

The Top Overseas real estate investment: Morocco 2007-2008

GOT a few Euro, Pouds or Dollars to spare and considering investing it in the Morocco property market?
problem? you've got the dough but don't know where to go for a bargain which will see healthy returns for years to come.
More and more of us are turning to overseas property investment - Balgaria, Romania, Spain, France, Morocco- the ultimate nest egg and a great excuse for a pleasant holiday every so often.
As lucrative as foreign investment proves to be, finding the right place can be as difficult as ever. I don't think so. You need to be in the right hands with professionals and honest overseas property agents, brokers, or investors.
As Moroccan British and Canadian Investors We met many of them here in Morocco. Directors of International real estate,investors and developers to ask their tips for hot global property spots in 2008.
All of them confirm that The overseas property boom has peaked especially in Morocco in 2008.
we feel optimistic investing in properties and land development in all over Morocco of course, People here invest wisely," said Carlos this week.
Top of Carlos list is the northern Morocco. The emerging property hot spot made waves in 2007-2008 and is set to become the place to invest over the next years 2009-210.
“Topical at the moment is Morocco in North Africa which is now seen as a winter sun destination considerably nearer and cheaper than other places. With year round sunshine and only a 2hours and 40 minutes flight away from London, 7 hours from Montreal and New York. The north Coast of Africa is beginning to make its mark on the world stage," explained Adam and Carlos who are investing in real estate and land development in Morcco and Spain more than 30 years.
International real estate and famous also recommends Morocco as a result of the area's tourism boom. With large hotels now opened on the desert resorts, the atlantic and the Mediterranean coast of Morocco and cheaper and better flights availability, prices are soon expected to rise on property, land and holiday accomodations.
Adam and Carlos: "Rentals too should prove excellent as this is a year round destination due to its constant good weather and therefore empty periods can be avoided."
Carlos Frontera explained that Morocco Property Investment second hot tip for 2008. Areas such as Dubai, Bahrain, Mexico and other parts of South America are all pegged to the dollar sign, and make for happy investment this year, but they know they have to move to Morocco property and tourism business because they already know how to fallow the money growth. And they know all it's Morocco Time.
Today Adam among Morocco the top investment spots. All the Spaniards learned from the past in the south of Spain...Now they are grabing land and property in the north coast of Morocco to sell them for more money to the Brits but the French are managing themselves in Morocco because they know the south of Morocco better grabing cheap land in Mirleft, Agadir, and Aglou, Ourika, Taroudant...
Spain has suffered a dip in popularity from property tycoons. Morocco affords easy access, has a good infrastructure and still improving it, has miles of stunning beaches untouched by an urban landscape and can offer good potential.
But he also added that would-be property moguls buy only from reputable investors and brokers who can guarantee land ownership.
Staying within North Africa especially Morocco,Adam recommends cities in Morocco, particularly Asilah,Teouan, Oued Law, Larache, Moulay Bouselham, El jadida, Merlift, Aglou, Tiznit, Marrakech, Oukayemden, Ourika, Fes, Taroudant, for healthy investment returns.
As Investors and brokers we know that Eastern Europe, particularly Bulgaria, has seen a high volume of sales due to heavy marketing and low price entry to the market...but what about other advantage like the weather, the atmospher, the food...etc, Canada has become popular with investors and keen skiers who are prepared to travel. There is a new ski resort causing a lot of attention; Fernie. This offers excellent rental potential with a wide choice of brand new properties close to the slopes, But most of people do'nt know that there many places where you can ski in Morocco, sorry the French know because they have been living long time in Morocco. Would you like to ski in North Africa? Go to Morocco, Oukayemden near Marrakech and Mishlifen near Ifrane, Fez...

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Attracting Overseas Property Buyers to the U.S.A.

As the U.S continues to struggle with issues created by the sub prime crisis, the lending climate in the U.S (confused) is encouraging more and more American real estate agents and owners to market their inventory overseas.

The Wall Street Journal is suggesting this as a good strategy and have some suggestions for attracting an overseas buyer. We think this is a great idea, but are not sure about some of their suggestions.

They suggest that one good way of doing this is to advertise in foreign newspapers, but this is an impractical option for several reasons – just try making an international telephone call to an Italian newspaper and explain that you wish to use your U.S based credit card to purchase a classified advertisement in their paper. And it may not have escaped your attention that many non-U.S websites are not exactly state of the art.

If, perhaps, you plan on targeting several International newspapers that have a strong online presence, possibly this would work, but on the whole – this approach is completely impractical and expensive.

There are any number of websites offering the facility to advertise property for free on their site – unfortunately, they are rarely visited, cumbersome to use and often have a charge to pay – at the end of the registration process.

Also, they are suggesting using websites such as forsalebyowner. Trust us, if you are looking for foreign interest, this is not the place to go – this website is not visited by a significant amount of visitors from overseas looking for a property investment opportunity. A small amount of visitors from Canada and the U.K. perhaps.

Most British buyers are looking for property in Las Vegas, New York city and Florida – that’s where the U.S. stops as far as they are concerned. A few perhaps are more aware and will be looking at the outer banks or California, but far and away the majority will stick to what they know.

So, if you have property to sell outside the most well known areas, the first thing you will have to do is sell the locale – very few outside the U.S will have heard of most of the towns you have property to sell in.

There are a few exceptions off the beaten track – and if you have a property in somewhere like Ashville, NC or Charlottesville, VA or in the Ozarks, you already know that you get some UK visitors. It is of course unlikely that a UAE property development company will be interested in a house in suburban Missouri ☺

Here are a few suggestions as to sensible places to advertise if you are looking for overseas buyers, bearing in mind that a good proportion of these will come from the UK, Russia and Western Europe:

The London Times
The Times online has a good classified section with an overseas section (the US counts as overseas) and the Sunday Times is particularly well read. You can place ads here both online and the print version – the best bet if you have a high quality property is the Sunday Times print version.
The New York Times
The New York Times is also well read outside the US and foreign property buyers are more likely to look here than forsalebyowner etc.
Totally Property.com
This company rightly points out that if you are trying to sell in to the Russian market, you will need representation on the ground.
Mondialhouse.com
Mondial is a French property company that offers the facility to advertise on their site. Well used with properties from most European countries – except the US - They do have this facility, but are listing no properties from the US as yet. They also have an English language interface.

Recent announcements of Projects in the Middle East

The Middle East continues to bring out new investment property projects. Dubai, Bharain, Abu Dhabi all competing to build the most prestigious property developments in the world. These are some new projects, recently announced.

17th January

Fakhruddin Properties, a UAE-based developer, yesterday, said it plans to develop a $68 million residential project called Grand Lagoon alongside Dubai Creek.

According to the press release, “When complete, the Creek will be home to residential towers, shopping malls, commercial buildings, five-star hotels and marina. A “city within a city”, the Grand Lagoon project itself is a 100 per cent freehold development, located at Al Sedaifa district, one of the seven interlinking islands set among a lush, green waterfront,”

17th January

Emaar Properties has strengthened its roster of premium residential projects within Downtown Burj Dubai - the new centre of the city - with the launch of tower one, the first of two Standpoint towers. Located on Burj Dubai Boulevard, the vigilantly designed Standpoint offers residents a fresh and distinctive perspective to modern living, offering an array of lifestyle choices.

Located on Burj Dubai Boulevard, the two Standpoint towers are situated in close proximity to Burj Dubai, the world’s tallest building. Standpoint also offers residents easy access to already-active retail and hospitality offerings, with the Souk al Bahar mall and The Palace, Al Manzil and Al Qamardeen hotels, positioned either side of Burj Dubai Boulevard.

13th January

Deyaar, the region’s fastest growing real estate company, unveiled “Bristol Towers” - a uniquely designed $0.4 billion twin tower project at Business Bay.

With the launch of Bristol Towers, Deyaar now has 12 projects on Business Bay. Its properties rank amongst the most sought after in the development.

Announcing Deyaar’s latest project, the company’s Chief Executive Officer, Zack Shahin said, “We are proud of our portfolio at Business Bay as each of our projects has been very well received by our customers. Bristol Towers are the jewel of that collection. The project is amongst the largest and most exquisitely designed undertakings at Business Bay, with premium facilities”.

9th January

Tashyeed Properties launched it’s Sukoon Tower – A 45 floor, luxury residential tower in Juffair, Bahrain, with plans for 592 apartments. This will also be a freehold development.

“At Tashyeed Properties we want to enhance people’s lives through the development of new homes and commercial buildings. With Sukoon Tower we plan to develop a landmark project close to the waters edge in Juffair that residents can make their own urban haven,” said Dr Kadhem Rajab, Chairman of Tashyeed Properties.

It would appear the property development in the region is far from over. These new developments alone will be adding somewhere in the region of 6,000 new investment property opportunities.

If you’ve always dreamt of buying a property abroad but have erred on the side of caution and never actually taken the plunge - fear no more. GEM Estates is offering investors the opportunity to purchase their own freehold home as part of the stunning five-star Pyramisa Beach Resort Hotel set within Sahl Hasheesh, Hurghada, Egypt. With prices from just £39,950 and a guaranteed lifetime rental income of 7% per annum (about £2,800), you can’t go wrong.

Already open since April 2007 and enjoying occupancy rates in excess of 85%, the Pyramisa Beach Resort comprises studio and one and two bedroom suites set right on the sandy shoreline. Five restaurants, swimming pools, a beach bar and a health & beauty club are on tap for owners and guests and should your head still want to lead your heart, prospective purchasers can ‘try before they buy’ as the initial 10% payment (£3,995 for a studio) is refundable until private purchase contract.

Samuel Mond, GEM Estates’ Egypt expert comments, “Pyramisa Beach Resort is a property investment to silence the sceptics. Worries about off-plan purchase are assuaged as the hotel is a successful going concern and a lifetime of guaranteed rental income at a healthy rate keeps the books balanced. Service charges are an absurdly low £5 per square metre per annum so there are no hidden costs to baulk at. Additionally a 60% mortgage is available for seven years at a fixed rate of 7.5% and, just to sweeten the deal, there is a guaranteed buyback after one year of ownership on all units at initial purchase price. Throw in capital appreciation at rates of around 15-20% per annum and this is a serious investment hotspot.”

Pyramisa Hotels is the leading private hotels chain in Egypt and listed on Egyptian stock market. Purchasers within the Sahl Hasheesh hotel have the right to up to eight weeks private use per year, plus for 35 euros per person per day you get unlimited food and drink. There is also the option to exchange part of that usage in any of the Pyramisa resorts. With six to choose from including Cairo, Luxor and Sharm el Sheikh, your investment will never become tedious.

The stunning 32 million m² Red Sea complex of Sahl Hasheesh is fast becoming an exclusive destination for Northern Europeans. Flanking 12.5km of sandy beaches, the resort will have no less than 20 hotels (five-star minimum) and eight golf courses by the time completion comes round in 2014. There will also be a cinema complex, a ‘sunken city’ with ancient ruins specifically for divers, bars, restaurants, authentic Egyptian marketplaces, a marina and first-rate sport facilities. A Sir Norman Foster co-designed resort at the southern tip of Hurghada is selling property at ten times the price of neighbouring developments showing the high expectations for the Red Sea resort.

In total there are 550 premium units within the gated Pyramisa Beach Resort, all offering great scope for investment. Each looks out over the hotel pools, gardens and boasts frontline sea views. Prices start from £39,950 for a studio, £87,890 for a one-bedroom suite, and from £219,600 for a two- bedroom suite. The service charge for these properties is a stunningly low £5 per square metre per annum, and there are four payment structures offered to purchasers – this is one bull that you can confidently grab by the horns.

Billionaire Pays Highest London Property Price

Lev Leviev has just paid a record amount for a new home in the U.K. - $70 million

Leviev, an Israeli diamond billionaire, apparently plans to settle in London to avoid paying taxes in his adopted home country. Which is a little strange when you consider the amount of Brits avoiding their British income tax burden by setting up shop in Monaco or the Middle East.

The seven-bedroom house is in Hampstead, a London suburb. The house came complete with a $1.5 million stone staircase, an indoor swimming pool with gold plated mosaic tiles and a reportedly $100,000 bullet proof front door.

Possibly the most unusual feature of the property is a topiary bush that reputedly cost $40,000 to shape.

Leviev is reported to be worth between 4 and 7 billion dollars and rate by Forbes as number 278 of the wealthiest men in the world. He is also fond of inflicting his strong religious beliefs on those around him. He made news several years ago when he apparently purchased a shopping mall so he could ensure the multi-plex cinema inside would close on Jewish religious holidays. He has also been recently quoted that he is very dissatisfied with the present political situation in Israel and also in the manner in which many non-religious Israelis are living, including their desecration of the Sabbath and religious holidays.

Tourism booming in Southern Morocco: Morocco to create desert resorts in south

Tourism and property investment market continue rising in Morocco and Moroccan with foreign investors are still looking for more development and investment in this authentic and unique country full of cultural and business contrasts. Thanks to His majesty the king of Morocco Mohamed VI who is looking always to improve infrastructures, law, security enforcement, environment, social living, responsible tourism and property development removing all the obstacles for everyone who is looking for to join the business market in Morocco and to get a huge propfit in a short time with low cost and absolutely no risk.

The last news: Morocco's Ministry of Tourism announced it will create desert and oasis resorts in the southern regions of Errachidia, Ouarzazate and Zagora at a total cost of $14.4m, Tourism Minister Mohamed Boussaid said on Thursday (January 10th). The minister said the resorts will include three hotel units, inns, campgrounds and facilities aiming at promoting the local craft industry. The projects are expected to create approximately 6,000 jobs.
6.72 million tourists visited Morocco between January and November 2007, an increase of 14% over the same period in 2006. Morocco has developed an ambitious strategy dubbed "Vision 2010" which aims to attract 10 million tourists per year by 2010.
Property investment and Land development in Morocco

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Germany's Property Market Set to Outperform its Neighbours

Iain Keys, manager of London & Capital's German real estate fund, claims the German property market is unique enough to warrant a fund of its own. In particular, he believes the German economy is set to outperform its neighbours with the positive benefits to its property market. "It's so attractive because its long-term prospects are much stronger than in other countries," Keys says.

The Hartz IV labour market reforms introduced a few years ago have helped to boost employment and property prices. Keys said,""All the fundamentals are sound and there is fantastic growth potential, greater than in other countries."

The fund is invested entirely in commercial real estate. According to Mr. Keys, the current credit squeeze has had more of an impact on Germany's office market than its retail market. The fund's portfolio will target retail properties such as supermarkets and retail parks. Distribution warehouses are also popular. The average lot size is €20m (£14m).

The fund will look to diversity in various regions of Germany helping to minimse risk. The German market is known to be fragemented where current agents tend to be specialise only in their particular region. Hamburg, for example, is a hub for advertising and media, while Frankfurt is a centre for financial services.

The Cayman listed fund was launched in March 2006. The aim is to achieve a annual return of 15% after fees.

Source: Ellen Kelleher, Financial Times

Knight Frank to Launch US$1 billion Fund in India

Rutley Capital Partners, the private equity arm of Knight Frank, will launch a US$1 billion Indian housing fund. For more than 12 years Knight Frank has had over 600 agents advising in India but this is the first time the partnership, one of the largest UK firms of property agents, is committing its own money to the project. In addition to using its own funds, Knight Frank hopes to attract outside investments to the new fund managed by Rutley Capital Partners, its private equity arm.

Knight Frank's push to invest in India, is part of a multi-billion dollar flow of investment into the country led by the US private equity market.

Source: The Times

Pamporovo Expecting 2 New Ski Lifts and Ski Runs

A new six-seat ski lift and two new ski runs are planned between Bulgaria’s Pamporovo ski resort and the village of Stoykite. According to the Mayor of Stoykite, assuming everything goes to plan, the ski runs and the lift will be ready for the open of the 2008-09 ski season. As the public debate on the environmental impact of the project has yet to be held, the Mayor of Stoykite Ivan Malkochev confirmed the information and said the procedure is complex and slow.

The cutting where the new lift will pass is ready, as it starts from the center of Stoykite and reaches Snezhanka peak in Pamporovo. The total length of the ski lift will be 2,992 m (approx 1.86 miles) with the the two ski runs reaching almost 5 kilometres or 3.1 miles, among the longest in the resort of Pamporovo.

Mayor Ivan Milkochev hopes that the new construction will also facilitate the total renovation of the old drag lift and ski slope located just above the village of Stoykite, as they are in close proximity to the new planned facilities.

Source: BulgarianProperties.com