Last Month in Real Estate: 1-28 February 2018
The Dubai real estate market is a dynamic, exciting space offering a gamut of possibilities for both investors and developers. Every week there’s a new breathtaking project announced or a spectacular construction handed over. To bring you up to speed with the best and brightest in Dubai real estate news from February here’s the very first edition of Bayut’s monthly recap: Last Month in Real Estate. Let’s take you through some of the key highlights from the last 28 eventful days in the Dubai property market, you absolutely mustn’t miss!
Developers and Agents Absorb VAT for Dubai Real Estate Transactions
One of the most discussed topics in the Dubai real estate news this year has been the impact of value-added tax (VAT). The real difference made by VAT in the UAE property market remains to seen; most developers have absorbed the extra charges instead of passing it on to buyers. From a legal standpoint, residential properties in the primary market are exempt from VAT for the first 3 years. This has obviously affected the margins for developers since other involved parties like construction companies and contractors are levying the VAT for their expenses.
“While it does affect our margins, we have been able to accommodate them by making bulk purchases based on our development pipeline,” says Shaher Mousli, CEO, Arthur Mackenzy Properties Group
Some brokerages have also incentivised property buyers with schemes to absorb VAT on properties along with other peripheral costs to amp up the interest, but it remains to be seen how long they can continue to avoid the VAT, considering the extra costs incurred on materials, design and contracting.
“In certain cases, there is some negotiation taking place between developers and contractors to meet halfway on these costs,” said Mohammad Mustafa, Managing Director at Emsquare Engineering Consultants. “However, in all cases, we are seeing some pass-through — from the contractor to the developer — is taking place.”
3D Printed Villas to be unveiled in two months
One of the most exciting Dubai real estate news this month has been the launch of Dubai’s first 3-D printed villa project. These pioneering villas are expected to be completed before Ramadan as part of a government housing program and are seen as a stepping stone to support Dubai’s 3-D printing strategy. The city is already home to a 3-D printed office and with the completion of this project, we could see a host of other developments in the Dubai property market capitalising on this technology.
“3D printing is a disruptive technology, one that promises to up-end the entire Dubai real estate industry. Currently, the process is more expensive than conventional building methods; moreover, it is in its embryonic stages, being able to accommodate only rudimentary designs. However, within a 10-15 year time frame, it appears likely that this form of ‘printing’ will start to replace existing methods of construction,” said Sameer Lakhani, managing director of Global Capital Partners.
Samana Group announces 7% discount for property transactions in cryptocurrency
Leading boutique real estate developers, Samana Group has announced the launch of their AED 20.5M residential housing project in the upscale Arjan district, home to Miracle Gardens. The Samana Greens development with ambitious sustainability goals is comprised of 131 residential units, expected to be completed by 2020. Samana Developers revealed that they are targeting the surge in popularity of bitcoin by offering a 7% discount for all properties paid for in cryptocurrency.
Imran Farooq, the CEO of Samana Group of Companies, said, “As a developer with a futuristic vision, Samana Greens will be based on green building concepts. It is befitting to help the customers to give the freedom to choose their preferred mode of payments – be it cash, cheque, credit card, home finance, bank transfer of cryptocurrency – which is gaining popularity every day.”
EXPO 2020 construction on schedule, Pavilions are seen rising from the desert
The latest update from the Expo 2020 team confirms that all major design elements of the site have been completed and the construction is progressing on schedule. In a sneak peek of the site, we can see the birds-eye-view of the huge pavilions rising into the sky. Several UAE based companies have been linked with the development in the area, to facilitate the largest congregation of innovative ideas from over 180 countries across the world.
Nakheel Unveils Plans for a New Mega-Mall, set to be the largest in the Middle East
The massive AED 6.1B project, currently titled the Deira Mall, is touted to be the largest mall in terms of leasable space in the MENA region. The gargantuan mall is expected to be over 17 million sq ft; catering to over 1000 shops, cafes, restaurants and cinemas. Nakheel announced the appointment of United Engineering Construction LLC as the official building contractors, under a contract valued at AED4.2 billion. This project has already grabbed the attention of the city’s investors and has been a major talking point amongst UAE property news enthusiasts.
Nakheel’s Chairman, Ali Rashid Lootah, said: “Nakheel’s existing and upcoming developments play a vital role in delivering the Government of Dubai’s vision. Deira Mall combines cutting-edge design, world-class facilities and a stunning location to bring a new dimension to the Dubai real estate market. With its top-flight shopping, dining and entertainment offering, the mall will provide endless attractions for residents of Deira Islands, the wider UAE community and the millions of tourists who visit Dubai each year.”
Construction Begins on Millenium BinGhatti Residences in Dubai Canal
The AED 400M project will see the Binghatti Developers bring in 200+ residential spaces in the iconic Dubai Canal at Business Bay. The project promises hotel amenities in a residential setting, including premium concierge, catering and laundry services. With unit prices starting at AED 625k, the project is expected to be a boon to the Dubai real estate market, and will further cement the reputation of the properties in Business Bay as a sound real estate investment option.
Mohammed Binghatti CEO and Head of Architecture at Binghatti Developers reaffirmed his belief on the impact of the project and said that he expected savvy investors to snap up the luxury properties because of the large rental revenues they can count on.
The World’s Tallest Hotel Comes to Dubai
The newly opened Gevora hotel, measuring an imposing 356m, has 75 floors and features over 500 guestrooms. It replaces the record by JW Mariott Marquis, the erstwhile tallest hotel in the world which is a full metre shorter than the Gevora hotel. The towering landmark is more than three times taller than Big Ben, 56 metres taller than the Eiffel Tower, and equal to the length of three football pitches! The 4-star hotel on Sheikh Zayed Road hopes to entice visitors with an exclusive butler service and a selection of healthy eateries.
February, as you can see was full of industry defining Dubai real estate news and updates. We at Bayut were able to get some interesting insights on the general perception of our audience about the UAE property market, including the credibility of cryptocurrency, the future of property prices in the emirate and even expert advice on the best areas for investing in Dubai property. Stay tuned for more monthly news updates on UAE’s best real estate blog and don’t forget to comment with your thoughts on the hottest Dubai real estate news!
