Dubai Constructions Update by Imre Solt: May 2009

Sunday, May 31, 2009

Conrad Hotel,Sheikh Zayed Road,Dubai photos, 29/May/2009

Conrad Hotel,Sheikh Zayed Road,Dubai photos, 29/May/2009

Sama Tower,Sheikh Zayed Road,Dubai photos, 29/May/2009

Sama Tower,Sheikh Zayed Road,Dubai photos, 29/May/2009

Elite Residences, Dubai Marina ,29/May/2009

Elite Residences, Dubai Marina ,29/May/2009

Marina 106, Dubai Marina ,29/May/2009

Marina 106, Dubai Marina ,29/May/2009

RTA Opens New Bus Route, Reshuffles Other Routes

RTA Opens New Bus Route, Reshuffles Other Routes

Dubai – United Arab Emirates: Public Transport Agency at Roads & Transport Authority (RTA) launched yesterday (June 1st) a new bus route (C28) covering several areas in the emirate of Dubai. The step came after extensive field surveys carried out by the Agency to identify the requirements of certain areas and meet the rising demand for public transport service triggered by the mounting population growth of the emirate.
“The Agency is broadening and upgrading its services to meet the urban growth and demographic expansion of the UAE in general and Dubai in particular; given its significance as a regional business & economic hub and a point of attraction for investors & businessmen from all over the world” said Abdullah Yousef Al Ali, Director of Bus Dep’t at RTA Public Transport Agency.
“The new route (C28) starts from Gold Souq Bus Station and passes through Bani Yas Rd to Deira Taxi Station and through Al Muraqqabat Rd to Abu Hail, then Al Wuhaideh and Al Mamzar; where it terminates at Al Mamzar Beach Park. 4 standard buses are deployed on this route during the normal working days and the number will be 3 buses during Fridays and holidays, with an interval between trips (headway) of 30 minutes.
A number of other changes have been introduced to other routes including C26 route the path of which has been diverted as of the same date to pass through Dubai International Airport Terminal 2 instead of Terminal 1. 12 buses will be deployed on this route during the normal days and 10 buses during Fridays and holidays.
“Public Transport Agency has also diverted the path of Bus Route 13A to go directly to Amman Road without stop over at Damascus & Doha Roads. 20 buses will be deployed on this route during the normal days and 18 buses during Fridays and holidays.
“Effective June 1st, Bus Route C15 will terminate at Hamirya Port instead of Al Mamzar Beach Park and there will be 14 buses to serve this route during the normal days, Fridays and holidays.
“Other changes introduced by the Agency include using standard buses on Route C22 and the interval between trips changed to 15 minutes. However, this service will not be available in the morning session of Fridays and the service will resume in the afternoon period. There will be 7 buses operating on this route during the normal working days and 6 buses on Fridays and holidays.
“As of June 1st, the Agency abolished Routes 22 and 28, and public bus commuters are required to note this change” said Al Ali in a concluding remark.

Speculators are now responsible for driving property prices below their ‘real’ values as investors pounce on distressed sales

Speculators now dragging the market down says expert

Speculators are now responsible for driving property prices below their ‘real’ values as investors pounce on distressed sales

A UAE-based real estate expert says that the UAE real estate market is still suffering from the antics of speculators flipping properties, amateur landlords and sadly those end users unable to meet their mortgage commitments due to unemployment.

According to Mohammed Nimer, CEO of mid market property development company MAG Group Properties which is involved in AED3 billion worth of projects in the UAE, “Speculators were originally responsible for driving property prices to unrealistic levels. Now although they are on the receiving end of the slump in prices, they are still blighting the real estate landscape by panic selling and undercutting the fair market price.”

Nimer admits this is good news for those wishing to buy property and the real value of a property is simply what somebody is willing to pay for it, but he cites the wider implications. “It makes banks reluctant to lend because prices are still falling and it is difficult for them to ‘feel the bottom’. That’s why we are experiencing loan-to-value (LTV) ratios of 75% - they are calculating the risk,” said Nimer.

On the other side of the coin, Nimer believes that falling prices then unnerve professional and institutional investors for the same reason, which in turn starves developers of funds.

“It’s a vicious cycle,” admits Nimer, “Forget the benefit of lower construction prices we have to wait until these distressed sales are pushed out of the system. Only then we will witness some stability and a return to fundamentals instead of sentiment based on fear and uncertainty.”

In the meantime Nimer welcomed initiatives by some developers and investment groups that are taking the rent-to-buy route to keeping the house sale option open to those that might otherwise lack the confidence or means to commit to home ownership at the moment.

And he also praised Dubai Government’s moves to guarantee job security for all government employees and to extend the work visa expiry period so that redundant expats have more time to try and find work.

“These initiatives will all contribute positively in some way to stabilising the market, “he said.

Overall Nimer did feel optimistic about the mid to long term prospects for the UAE real estate industry. “Although property prices fell dramatically in the last quarter of 2008 and the first quarter of 2009, the rate of decline has now slowed considerably, indicating that the market could be approaching the bottom.”

In addition, with years of massive budget surpluses, substantial Sovereign Wealth Funds (SWF) and oil recently breaching $60 per barrel, Nimer was confident that the UAE Government had the means and the desire to fund major infrastructure projects.

“With government support the UAE will overcome this challenge, but the private sector has to take responsibility for its own actions. Speculators brought us into this situation and unfortunately it looks like we are still waiting for them to finally exit the market. What is of primary importance is that we limit the damage they have done, learn from our mistakes and take responsibility for our own actions,” stated Nimer.

About MAG Group Properties

The Dubai-based Moafaq Al Gaddah Group of Companies (MAG Group Properties) was established in 1978 and has grown into a multinational organisation with 18 offices in eight countries throughout Europe, the Middle East and Asia.

In the last five years the MAG Group Properties has invested in 12 properties at various stages of development across the residential, commercial and industrial sectors. The company focuses on projects that provide long-term benefits to investors and customers.

Sultan Bin Tahnoon greets with Viscount Lord Rothermere

Sultan Bin Tahnoon greets with Viscount Lord Rothermere

His Excellency Sheikh Sultan Bin Tahnoon Al Nahyan, Chairman of Abu Dhabi Tourism Authority (ADTA) and Abu Dhabi National Exhibitions Company (ADNEC) recently met with Viscount Lord Rothermere, Chairman of Daily Mail and General Trust (DMGT), the parent company of ADNEC Foundation Partner, DMG World Media, organiser of Gastech 2009 which was staged at ADNEC from 25 – 28 May.

The meeting was also attended by ADNEC’s Board of Directors, HE Ali Saeed Bin Harmal Al Dhaheri, MD of ADNEC, Simon Horgan, CEO of ADNEC, Michael Morgan, CEO of DMGT, Mike Cooke, CEO of DMG World Media and other senior government and business officials.

His Excellency Sheikh Sultan commended Viscount Lord Rothermere on both the heritage and the continued success and growth of the DMGT and praised the depth of relations between ADNEC and DMG World Media. The two then discussed ways of boosting ties still further in relation to new major exhibitions and events for Abu Dhabi. His Excellency also presented the Viscount with a commemorative gift as an expression of gratitude for DMGT’s ongoing commitment to ADNEC and to Abu Dhabi.

The Viscount’s delegation received a helicopter flight over some of Abu Dhabi’s major development projects, such as Saadiyat Island, and was given a VIP tour of Gastech 2009, meeting key exhibitors and delegates.

About Abu Dhabi National Exhibitions Company (ADNEC)

Abu Dhabi National Exhibitions Company (ADNEC) is a strategic international venue development and management company. ADNEC’s venue portfolio includes one of the most modern exhibition centre’s in the world - the Abu Dhabi National Exhibition Centre, and the UK capital’s largest exhibition and conference venue, ExCeL London.

ADNEC is creating unique business districts to serve Abu Dhabi’s rapid expansion and emergence on the global stage.

Development projects surrounding the Abu Dhabi National Exhibition Centre include Capital Centre (a mixed-use development of 23 residential, commercial and mixed-use towers adjacent to the exhibition centre), Capital Gate (an iconic 35 storey gravity defying feature tower, featuring the 5-star hotel - ‘Hyatt at Capital Centre’) and a 2.4km Marina zone.

In addition, ADNEC is expanding within the region, with The Al Ain Convention Centre, a residential and business micro city around a state-of-the-art convention centre.