Dubai council issues list of freehold locations

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The Government of Dubai has published for the first time the locations where expatriates will be able to buy property in the emirate.

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, and Ruler of Dubai, has issued the three-page, five-article Order No. 3 of 2006 designating areas for expatriates who can enjoy freehold ownership in Dubai, published in the government’s official gazette on July 3, 2006 – a copy of which was obtained by Gulf News yesterday.

Dubai’s real-estate dilemma

There’s a simple axiom — what goes up must surely come down? The real-estate sector in Dubai seems to be defying this logic. The news this week that property prices will peak in 2009 and then decline by at least 15 per cent suggests the market is headed for the nirvana of a soft-landing after years of heady increases. Not necessarily so. Steps taken by regulators to dampen demand do not go far enough to deter rampant speculation that can see off-plan units ‘flipped’ several times. This area above all others is the factor driving year-on-year double-digit growth. The dilemma for regulators is not to take any action that sees the market quickly unravel — it is a fine balancing act.

The market has had an extraordinary run since 2002 but the balance between supply and demand is rapidly being addressed with a record number of units set for delivery. The property market fundamentals in Dubai are also quite different from many others. For example a significant number of regional investors see Dubai as a safe haven for investment. On this presumption they frequently buy multiple units that distorts both prices and rents. They may begin to question the notion of safehaven as doubts over the granting of an automatic Residence Visa could not only deter investment but affect re-sale values too.

Investment in property no surety for residence visa

An impending law detaining the relationship between a real estate developer and an investor will clear the confusion regarding developers facilitating residency visas, according to the immigration authority.

Investors say their contracts promised residency visas as part of the property deal but many developers recently stopped accepting visa applications on the advice of the Dubai Naturalisation and Residency Department (DNRD).

Director of the DNRD Major-General Mohammed Ahmed Al Marri told Khaleej Times on Tuesday that there is no explicit text in the law that stipulates the property purchaser is entitled to residence visa.

“We have said in the past and we have reiterated it over and over again that there is no link between residence visa and property ownership,” MajorGeneral Al Marri stressed.

Middle East has world’s highest hotel occupancy

The Middle East had the high est hotel occupancy and average room rates in the world in the first half of the year, Deloitte & Touche LLP said.

Occupancy was 75.3 per cent in the first half compared with 68.7 per cent in the previous six months, Deloitte said in an e-mailed statement on Thursday. The average room rate rose 14.1 per cent to $180.

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Arabian Ranches flyover opens today

Motorists facing traffic snarls on Emirates Road can heave a sigh of relief as the Roads and Transport Authority (RTA) has announced to open the Arabian Ranches Interchange from Friday.

The Arabian Ranches Interchange which took two years to complete at a cost of Dh410 million, links Emirates Road with Umm Suqeim and Al-Qudrah roads, and is expected to ease the traffic on Emirates Road.

Maitha bin Adai, CEO of the Traffic and Roads Agency at the RTA, stated: “The previous roundabout at the intersection of Emirates Road cutting the Umm Suqeim and Al-Qudrah roads has been replaced by a multi-tier flyover spanning 11 bridges and one underpass.

Dubai issues new mortgage law

Dubai has issued a new mortgage law as part of moves to regulate the Gulf Arab business hub’s booming real estate sector, the chief executive of the Real Estate Regulatory Authority said.

Following a 35-article decree issued by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the new law regulates themortgage process in an effort to protect the rights of lenders and borrowers and improve transparency, Marwan Ahmed bin Ghalita said on Tuesday.

The law, which comes into effect 60 days after its publication in the official gazette, stipulates that mortgage contracts be registered with the land department, specifying the size of the loan, the repayment period and the value of the property to which the loan is linked.

Buy Property – Live in it for Two Weeks

When Dubai first opened up its real estate market to foreigners in 2006, it gave them a great incentive: buy a house in Dubai and receive a Residency Permit. Alternatively, Residency Permits are only issued to foreigners working in the country and only through their employer. This provided a great incentive for people to purchase property especially for citizens of neighboring countries such as Lebanon, Iraq and Pakistan; Dubai seemed to be a great destination to escape the political turmoil back home.

Here’s the story:

Investors say their contracts promised residency visas as part of the property deal but many developers recently stopped accepting visa applications on the advice of the Dubai Naturalization and Residency Department (DNRD).

Director of the DNRD Major-General Mohammed Ahmed Al Marri told Khaleej Times on Tuesday that there is no explicit text in the law that stipulates the property purchaser is entitled to residence visa. “We have said in the past and we have reiterated it over and over again that there is no link between residence visa and property ownership,” Major- General Al Marri stressed.

Well they might have been saying it, but the major developers in the country were clearly providing contracts with automatic Residency Permits included in the fine-print. So what’s the plan? Well, the government has decided that Residency Permits for property bought will not be renewed. Instead property owners will receive a multiple visit visa allowing the owner to visit his property for two weeks at a time. Seems fair, right? I mean a one-bedroom apartment at Dubai Marina costs just over half a million US dollars, its only right that you get to live in it for no more than two weeks at anyone time. It’s not like you bought it to live in it. That would be just silly!

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