Experience Expertise Excellence · 36 Jumeirah 105,000 140,000 160,000 200,000 0 10 Jumeirah...
Transcript of Experience Expertise Excellence · 36 Jumeirah 105,000 140,000 160,000 200,000 0 10 Jumeirah...
Q-o
-Q P
erc
en
tag
e C
han
ge
Average Apartment Sales Price and Percentage Change (Q1 – Q2 2011)
Sales Price (Q2) Percentage Change
Apartment Sales Villa Sales Office Sales Apartment Rentals Villa Rentals Office Rentals
Mar-08
DIFC Discovery Gardens Downtown Dubai Dubai Marina Greens Jumeirah BeachResidence
Jumeirah LakesTowers
Palm Jumeirah
AED
/m
2A
ED
/m
2A
ED
/m
2
Average Villa Sales Price and Percentage Change (Q1 – Q2 2011)
Sales Price (Q2) Percentage Change
Average Office Sales Price and Percentage Change (Q1 – Q2 2011)
Sales Price (Q2) Percentage Change
-7%
0%
-8%
-5%
-6%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000 0% 0% 0%
0% 0%
-7%
-5% -5%
0%
-3%
0%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Arabian Ranches Emirates Hills Green Community Jumeirah Islands Jumeirah Village Meadows Palm Jumeirah Springs
-11%
0%
-15%
0%
-12%
0%
0
5,000
10,000
15,000
20,000
25,000
Business Bay DIFC Dubai Investment Park Dubai Silicon Oasis Jumeirah Lakes Towers Tecom C
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11
Experience Expertise Excellence
Customer Management: +971 4 403 7700 www.astecoreports.com
Dubai ReportQ22011
Rental Rates (AED/pa) Sales Prices (AED/m2)
Min Max Min Max
Apartment
Studio 15,000 60,000
2,700 17,2001 BR 21,000 120,000
2 BR 33,000 175,000
3 BR 65,000 190,000
Villa
2 BR 40,000 170,000
4,300 32,3003 BR 70,000 300,000
4 BR 90,000 350,000
5 BR 100,000 550,000
Office Per m2 325 3,125 4,850 21,500
Over the last three months we have seen some positive developments such as the extension of the property visa period from six months to three years and the implementation of the International System of Units. Both are steps in the right direction and represent the government’s commitment to increasing transparency and confidence in the market, which in turn will encourage investment.
Elaine Jones, CEO, Asteco Property Management LLC
“ “
Property Market Summary
Real Estate Monitor
Highlights
�� Rental� rates� and� sales� prices� have� seen� minimal� changes�over�the� last�three�months,�with�apartment,�villa�and�office�sales�declining�by�3,�3�and�6%�respectively,�whilst�rents�for�apartments,�villas�and�offices�eased�by�2,�0�and�2%.
�� Established�villa�communities�have�seen�no�changes�over�the�last� three� months;� however,� continuous� handovers� of� new�villa�developments�will�eventually�have�a�downward�effect�on�current�rent�levels.
�� Office�rental�rates�experienced�minimal�overall�declines�mainly�due�to�the�increased�availability.�Although�enquiry�levels�are�on�the�rise,�further�softening�of�the�office�market�is�expected�in�line�with�increasing�supply.�
The�line�graph�below�demonstrates�the�average�percentage�sales�and�rental�trend�on�a�quarterly�basis.
02 For additional information call +971 4 403 7700 or email [email protected]
Residential
�� Apartment�sales�prices�have�decreased�by�3%�on�average,�mainly�due� to� continuous� handovers� of� real� estate� projects� and� the�resulting�widening�of�the�supply�and�demand�gap.
�� Asteco� has� noticed� a� significant� number� of� people� on�medium-term�contracts�with�respectable�housing�allowances�opting�to�use�the�money� towards� the�purchase�of�a�home� rather� than� renting�one.
�� The� UAE� Federal� Government� announced� the� decision� to�extend� the�property� visa�period� from�six�months� to� three� years.�Clarifications�regarding�a�minimum�property�value�of�AED�1�million�and�a�minimum�fixed�income�of�AED�10,000�per�month�have�yet�to�
be�announced.�The�move�represents�a�significant�milestone�for�the�Dubai� real�estate�market�and� is�expected�to� increase� investment�in�the�UAE.�
�� Another� development� is� the� introduction�of� a� law� concerning� a�unified�metric�system.�Effective�11/11/11,�the�UAE�will�implement�the�International�System�of�Units�(SI),�replacing�feet�with�metres,�etc.�The�aim�is�to�build�a�UAE�infrastructure�that�is�in�line�with�best�international�practice� and�will� bring�much�needed�uniformity� to�the�market.
Apartment Sales Prices
Apartment Rental Rates�� Apartment� rental� rates� have� experienced� decreases� of� 2%� on�average�for�a�selection�of�areas�in�Dubai.
�� Affordable� developments� such� as� Discovery� Gardens� and�International�City�have�seen� the� largest�declines�with�11�and�4%�respectively.�Both�areas�comprise�a�significant�amount�of�apartment�units� -� in� fact,� Nakheel� has� recently� released� a� large� amount� of�apartments� in� Discovery� Gardens,� which� has� impacted� rents.� In�addition,� continuous�handovers� in�Dubai� and� the� resulting� rental�declines�have�had�a�knock-on�effect�on�rates.�
�� Other�areas� that�have�either� seen�a� significant�amount�of� supply�over� the� last� few� months� or� are� expecting� some,� namely� Dubai�Marina�and�Jumeirah�Lakes�Towers�(JLT),�have�also�witnessed�some�
softening�in�rents.
�� Studios,�one-�and�two-bedroom�apartments�have�all� seen�similar�drops�due� to� the� large�number�of� these�unit� types.�Changes� for�three-bedroom�units�with�more�limited�overall�supply,�on�the�other�hand,�were�minimal.�
�� Asteco�has�witnessed�a�large�number�of�tenants�moving�from�two-�or� three-bedroom�apartments� to� townhouses�or� small� villas.�This�will�eventually�result� in� landlords�having�to�adjust�rental� levels�for�larger�apartment�types�in�order�to�retain/attract�tenants.
�� As�previously�stated,�quality�developments�in�established�locations�with�minimal�future�supply,�such�as�Palm�Jumeirah�and�Downtown�Dubai,�are�more�resilient�to�the�overall�softening�of�the�market.
Average Rental Rates (AED/pa)Q-o-Q Change (%)
Map Key Development Studio 1 BR 2 BR 3 BR
8 Discovery Gardens 25,000 39,000 55,000 n/a -11
35 Downtown Dubai 50,000 68,000 100,000 150,000 0
3 Dubai Marina 40,000 62,500 80,000 115,000 -3
27 International City 17,000 25,000 38,000 n/a -4
2 Jumeirah Beach Residence 50,000 70,000 90,000 110,000 0
4 Jumeirah Lakes Towers 33,000 47,500 65,000 85,000 -1
1 Palm Jumeirah n/a 90,000 120,000 170,000 0
32 Sheikh Zayed Road 50,000 67,500 100,000 120,000 0
Q-o
-Q P
erc
en
tag
e C
han
ge
Average Apartment Sales Price and Percentage Change (Q1 – Q2 2011)
Sales Price (Q2) Percentage Change
Apartment Sales Villa Sales Office Sales Apartment Rentals Villa Rentals Office Rentals
Mar-08
DIFC Discovery Gardens Downtown Dubai Dubai Marina Greens Jumeirah BeachResidence
Jumeirah LakesTowers
Palm Jumeirah
AED
/m
2A
ED
/m
2A
ED
/m
2
Average Villa Sales Price and Percentage Change (Q1 – Q2 2011)
Sales Price (Q2) Percentage Change
Average Office Sales Price and Percentage Change (Q1 – Q2 2011)
Sales Price (Q2) Percentage Change
-7%
0%
-8%
-5%
-6%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000 0% 0% 0%
0% 0%
-7%
-5% -5%
0%
-3%
0%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Arabian Ranches Emirates Hills Green Community Jumeirah Islands Jumeirah Village Meadows Palm Jumeirah Springs
-11%
0%
-15%
0%
-12%
0%
0
5,000
10,000
15,000
20,000
25,000
Business Bay DIFC Dubai Investment Park Dubai Silicon Oasis Jumeirah Lakes Towers Tecom C
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11
03www.astecoreports.com
Residential
For additional information call +971 4 403 7700 or email [email protected]
Average Rental Rates (AED/pa)Q-o-Q Change (%)
Map Key Development 2 BR 3 BR 4 BR 5 BR
24 Arabian Ranches 100,000 125,000 160,000 250,000 0
18 Green Community n/a 170,000 190,000 210,000 2
36 Jumeirah 105,000 140,000 160,000 200,000 0
10 Jumeirah Islands n/a n/a 270,000 300,000 0
11 Meadows n/a 180,000 200,000 225,000 0
28 Mirdiff 60,000 80,000 105,000 125,000 -2
1 Palm Jumeirah n/a 275,000 315,000 450,000 0
12 Springs 80,000 105,000 n/a n/a 0
Villa Rental Rates �� Villa� rental� rates� have� been� relatively� stable� over� the� last� three�months,�with�only�some�areas�showing�any�changes.�The�majority�of� areas� surveyed� are� established� developments� with� little� or� no�new�supply.
�� Mirdiff,�for�example,�has�seen�a�large�amount�of�villas�in�Shorooq�come� on� line� over� the� last� few� months,� which� has� resulted� in�decreasing�rates,�especially�for�the�more�mature�projects.
�� Green�Community,�on� the�other�hand,�has�seen�a�slight� increase�due�to�the�limited�availability�of�villas�for�lease.
�� Asteco�has�witnessed�a� trend�where� landlords�have� raised� rental�rates�for�unit�types�that�are�limited�within�the�particular�project�to�the�point�that�a�two-bedroom�villa�is�more�expensive�than�a�three-bedroom�unit�simply�because�there�is�an�abundance�of�the�latter.�However,�there�is�no�evidence�that�these�units�are�actually�leased�
at� the� inflated�rate�as� there� is�generally�plenty�of�choice� in�other�developments.�
�� New� villa� developments� along� Emirates� Road,� such� as� The� Villa�and�Jumeirah�Village,�are�gaining�popularity�among�tenants�due�to�the�large�unit�sizes,�competitive�rates�and�improved�road�network,�resulting�in�short�travel�times�into�the�city.
�� Established�communities�such�as�Emirates�Living�will�need�to�adjust�their� rates� and� terms� to� remain� competitive.� However,� there� will�always�be�demand�for�these�centrally�located�developments.
�� Overall,�rental�rates�are�expected�to�decrease�slightly�in�the�short-�to�medium�term�in�line�with�increased�delivery�of�villa�developments�such� as� Jumeirah� Park,�which� is� expected� to� be�partially� handed�over�by�the�end�of�2011.
Villa Sales Prices�� Villa� sales� prices� have� seen� some� adjustments,� with� an� overall�decrease�of�3%.
�� The� majority� of� declines� occurred� in� developments� with�relatively� large�unit� sizes� and� resulting�high�price� points,� such� as�Green� Community� and� Jumeirah� Islands,� which� make� the� units�unaffordable�to�a�large�segment�of�the�market.
�� End-users�continue�to�be�the�largest�buyer�group�as�reduced�sales�prices� and� better� financing� options� appeal� to� people� previously�unable�or�unwilling�to�buy,�especially�those�who�now�take�a�long-term�view�to�living�in�Dubai.
�� Continuous� handovers� on� Emirates� Road� (such� as� The� Villa)� and�expected�delivery�of� villas�on�Sheikh�Zayed�Road� (Jumeirah�Park)�later� this� year� will� aversely� affect� sales� prices� in� surrounding�developments.
�� The�extension�of�the�property�visa�period�has�been�eagerly�awaited,�and�although�it�will�increase�the�number�of�buyers�significantly,�it�will�not�solve�the�issue�of�oversupply�in�the�short-�to�medium�term.�Reducing�the�property�value�and�fixed�income�criteria�would�boost�investment�in�Dubai�and�open�the�market�to�other�potential�buyers�such�as�young�professionals�and�retirees.
Q-o
-Q P
erc
en
tag
e C
han
ge
Average Apartment Sales Price and Percentage Change (Q1 – Q2 2011)
Sales Price (Q2) Percentage Change
Apartment Sales Villa Sales Office Sales Apartment Rentals Villa Rentals Office Rentals
Mar-08
DIFC Discovery Gardens Downtown Dubai Dubai Marina Greens Jumeirah BeachResidence
Jumeirah LakesTowers
Palm Jumeirah
AED
/m
2A
ED
/m
2A
ED
/m
2
Average Villa Sales Price and Percentage Change (Q1 – Q2 2011)
Sales Price (Q2) Percentage Change
Average Office Sales Price and Percentage Change (Q1 – Q2 2011)
Sales Price (Q2) Percentage Change
-7%
0%
-8%
-5%
-6%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000 0% 0% 0%
0% 0%
-7%
-5% -5%
0%
-3%
0%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Arabian Ranches Emirates Hills Green Community Jumeirah Islands Jumeirah Village Meadows Palm Jumeirah Springs
-11%
0%
-15%
0%
-12%
0%
0
5,000
10,000
15,000
20,000
25,000
Business Bay DIFC Dubai Investment Park Dubai Silicon Oasis Jumeirah Lakes Towers Tecom C
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11
04 For additional information call +971 4 403 7700 or email [email protected]
Commercial
Office Rental Rates �� Office�rental�rates�have�experienced�minimal�declines�of�2%�due�to�increased�availability.�
�� Despite� limited�or�no�changes� in�overall� rates,� it�should�be�noted�that�the�rental�range�has�declined�by�up�to�5%�for�a�large�number�of�areas�surveyed.
�� Dubai�International�Financial�Centre�(DIFC)�introduced�a�rental�rate�structure� at� the� beginning� of� 2011,� offering� discounts� for� some�tenants� in� order� to� increase� transparency� and� make� office� units�more�compatible�with�the�rest�of� the�market.�However,� it� should�be� noted� that� DIFC� is� a� unique� type� of� free� zone� with� separate�rules� and� regulations� and� not� necessarily� comparable� to� other�developments�and�free�zones.
�� Demand�for�units�in�proximity�to�the�Metro�has�increased;�however,�affordability� still� precedes� location,� especially� for� back� office�operations,� which� deters� potential� tenants� who� are� not� in� the�position�to�pay�the�premium.
�� Asteco�has�witnessed�a� trend�where� the�original�central�business�district� (CBD)� –� namely� Bur� Dubai� and� Deira� -� is� moving� south�towards� Sheikh� Zayed� Road,� DIFC� and� Business� Bay.� In� addition,�
Tecom,�Dubai� Internet�City,�Dubai�Media�City,�Knowledge�Village�and�JLT�have�formed�a�secondary�CBD.
�� Despite� increased� enquiry� levels,� rental� rates� will� continue� to�decline�as�supply�is�expected�to�outweigh�demand�for�the�short-�to�medium�term.�This�will�particularly�benefit�small-�to�medium�sized�companies.
Map Key DevelopmentAverage Gross Rental
Rates (AED/m2/pa)Q-o-Q Change
(%)
31 Bur Dubai 970 -5
33 DIFC 2,370 -4
6 Dubai Internet City 1,345 -4
21 Dubai Investment Park 430 0
5 Dubai Media City 1,400 0
4 Jumeirah Lakes Towers 535 0
32 Sheikh Zayed Road 1,500 0
16 Tecom C 700 0
Office Sales Prices�� Dubai’s�office�sales�market�has�seen�overall�declines�of�6%.
�� Both�Business�Bay�and�Jumeirah�Lakes�Towers�have�decreased�by�11� and� 12%� respectively� due� to� ongoing� construction� and� the�significant� amount� of� supply� expected� in� the� short-� to� medium�term.
�� Dubai� Investment� Park� predominantly� caters� to� back� office�operations�and�warehousing.�The�area�is�a�less�attractive�investment�option�due�to�its�location�disadvantage.
�� However,�the�overall�transaction�activity�in�the�office�sales�market�is�minimal.
�� The�anticipated�issuing�of�a�new�companies�law�that�was�expected�to� increase� the� percentage� of� foreign� ownership� in� companies�in� some� sectors� has� not� only� been� delayed,� but� claims� of� any�rise� in� foreign� ownership� in� companies� outside� free� zones� have�recently�been�dismissed.�The� law�was�expected�to�attract�foreign�direct� investment�and�boost� the� local� economy�and�employment�opportunities.
Q-o
-Q P
erc
en
tag
e C
han
ge
Average Apartment Sales Price and Percentage Change (Q1 – Q2 2011)
Sales Price (Q2) Percentage Change
Apartment Sales Villa Sales Office Sales Apartment Rentals Villa Rentals Office Rentals
Mar-08
DIFC Discovery Gardens Downtown Dubai Dubai Marina Greens Jumeirah BeachResidence
Jumeirah LakesTowers
Palm Jumeirah
AED
/m
2A
ED
/m
2A
ED
/m
2
Average Villa Sales Price and Percentage Change (Q1 – Q2 2011)
Sales Price (Q2) Percentage Change
Average Office Sales Price and Percentage Change (Q1 – Q2 2011)
Sales Price (Q2) Percentage Change
-7%
0%
-8%
-5%
-6%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000 0% 0% 0%
0% 0%
-7%
-5% -5%
0%
-3%
0%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Arabian Ranches Emirates Hills Green Community Jumeirah Islands Jumeirah Village Meadows Palm Jumeirah Springs
-11%
0%
-15%
0%
-12%
0%
0
5,000
10,000
15,000
20,000
25,000
Business Bay DIFC Dubai Investment Park Dubai Silicon Oasis Jumeirah Lakes Towers Tecom C
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11
05www.astecoreports.com For additional information call +971 4 403 7700 or email [email protected]
Overview
Project Focus
Deira Centre Residence Discovery Gardens
Location The residential complex is located in Al Muteena (Deira), near Muraqqabat, next to the police station and in proximity to Mövenpick Hotel. Close to Dubai International Airport, Bur Dubai and Sheikh Zayed Road.
Situated along Sheikh Zayed Road between interchanges five and six. Next to Ibn Battuta Mall and Ibn Battuta Gate, close to Jebel Ali Free Zone, Dubai Internet City and Media City.
Metro Station Abu Baker Al Siddiqui Station (Green Line – operational end of 2011)
Ibn Battuta Metro Station (Red Line)
Developer BSI Ltd. Nakheel
Completion December 2010 February 2008 - First Phase
Facilities and Amenities
� Spacious apartments with balcony
� Tiled flooring
� Built-in wardrobes
� Free chiller A/C
� Gym, roof top pool and deck area
� Basement car parking (main entry to the car park is located away from the main road)
� Landscaped public space, away from the main road
� Central lobby, onsite security and secure access controls
� Children’s playground
� Retail units on the ground floor
� Centralised A/C
� Quality kitchen cabinetry
� Built-in wardrobes
� Outdoor parking
� Community swimming pools (soon to be opened)
� Children’s playground
� Tennis, basketball & volleyball courts
� Football pitch
� Mosque
� Trails for cycling and jogging
� Retail units on the ground floor (Zen Cluster)
Number of Units
247 Apartments 245 Buildings18,803 Apartments
Unit Mix Studio x 81 BR x 53 2 BR x 146 3 BR x 40
Studio x 9,6051 BR x 6,8782 BR x 2,320
Unit Sizes (m2) Studio: 44 - 501 BR: 69 - 832 BR: 102 - 121 3 BR: 139 - 160
Studio: 37 - 561 BR: 76 - 1212 BR: 126 - 167
Unique Selling Points
� Proximity to Dubai Airport and easy access to Sharjah route
� Adjacent to the souk, museum and creek
� Proximity to City Centre and Al Ghurair Shopping Centre
� Next to Mövenpick Hotel
� Metro station within walking distance
� Convenient residential location for people working in Jebel Ali and Abu Dhabi
� Close proximity to Ibn Batutta Mall
� Extensive landscaping and walkable areas
� Large unit sizes
Overview
06 For additional information call +971 4 403 7700 or email [email protected]
UAE Residential ComparisonThe�graphs�below�show�the�current�average�rental�rates�(in�AED‘000)�for�apartments�and�the�percentage�change�in�rental�rates�over�the�last�three�months�for�the�different�units�across�the�Emirates.
The number of locations in Dubai has increased from 16 to 22, with the majority of new areas added being affordable developments, which explains the above-average decline.
AED
00
0s
AED
00
0s
AED
00
0s
AED
00
0s
Studio
3 BR
1 BR
2 BR
-8%
-2%
0%
-6%
0% 0% 0%
-10%
-6%
0%
-4%
0% 0% 0%
-11%
-9%
0%
-4%
0% 0% 0%
-4%
-9%
0% 0% 0% 0% 0%
Dubai
Dubai
Dubai
Dubai
Abu Dhabi
Abu Dhabi
Abu Dhabi
Abu Dhabi
Sharjah
Sharjah
Sharjah
Sharjah
Ajman
Ajman
Ajman
Ajman
Ras Al Khaimah
Ras Al Khaimah
Ras Al Khaimah
Ras Al Khaimah
Fujairah
Fujairah
Fujairah
Fujairah
Umm Al Quwain
Umm Al Quwain
Umm Al Quwain
34
52
73
112
44
68
96
128
19
24
31
42
17
24
27
40
17
23
31
40
19
22
30
41
15
19
27
37
Umm Al Quwain
07www.astecoreports.com
Overview
For additional information call +971 4 403 7700 or email [email protected]
Mortgage Market Update
LENDER (*)
CLIENT TYPEMAXAGE
MAX LOAN
TERM MAX LTVMAX DBR
INTEREST RATE
MIN SALARY INSURANCEPROCESSING
FEEPART
REPAYMENTCLOSURE
Yrs
(AED million)
Yrs % % % (AED/ pm) % % %
ADCBUAE Nationals & UAE Residents
65 salaried; 70 self
employed 10 25
<90 with salary transfer in Abu Dhabi;
<85 with salary transfer in Dubai
<60 6.5-9.5 12,000Not mandatory
for life insurance
1 (no caps)<2 (no fee after
5 years)
3 (if transferred to another lender; no fee after 3 years (if
own funds)
ABU DHABI FINANCE
UAE Nationals, UAE Residents & Non Residents
70 No Limit 30 <85 <55 5.75-8.5 10,000 Mandatory 1-1.25 (no caps)<2 (no fee after
3 years)
4 (if transferred to another lender; no fee after 3 years (if
own funds)
ADIBUAE Nationals & UAE Residents
70 8 25 <90 <60 5.5-8.5 10,000 Mandatory 1 (no caps)
<20 of balance with no charge; anything above
charged at 3
<3
BARCLAYS
UAE Nationals, UAE Residents
& UK Non Residents
65 10 25 <75 <55 5.99-6.99 25,000 Mandatory None<3 (of the
outstanding amount)
<3 (of the outstanding amount)
DUBAI BANK
UAE Nationals & UAE Residents
65 salaried; 70 self
employed 6 25 <85 <60 5.25-6.65 15,000 Mandatory
1 (capped at AED 20,000)
None None
HSBC BANKUAE Nationals & UAE Residents
65 10 25 <75 <60 5.49-5.99 20,000 Mandatory1 (min. AED
5,000) *can be added to loan*
3 (if transferred to another
lender); or AED 2,500 (if cleared with own funds)
Free (min. AED 25,000)
LLOYDS TSB BANK
UAE Nationals & UAE Residents
65 No Limit 20 <70 <40 5.49-7.99 12,000 Mandatory 0-1 (no caps)None (Min.
payment of AED 50,000)
None
MASHREQ BANK
UAE Nationals & UAE Residents
65 salaried; 70 self
employed 10 25 <80 <55 5.49-7.75 18,000 Mandatory
1 (capped at AED 25,000)
<1 (no fee after 2 years)
<1 (no fee after 2 years); 3 (if transferred to
another lender)
NOOR ISLAMIC BANK
UAE Nationals & UAE Residents
65 10 25 <80 <55 5.99-8.2510,000 salaried;
50,000 self employed
Mandatory1 (capped at AED
40,000)
2 (for the term of the mortgage )
2 (if paid from own funds); 5
(if transferred to another lender)
RAKBANKUAE Nationals,
UAE Residents & Non Residents
65 No Limit 25 <80 <58 7.99-10.5 10,000 Mandatory 1-1.251 (if paid from
own funds)1; or 5 (if transferred
to another lender)
STANDARD CHARTERED BANK
UAE Nationals & UAE Residents
70 18 30 <80 <60 5 12,000 Mandatory 1
None (for loans under AED 10 million); 2 (for loans over AED
10 million)
None (for loans under AED 10
million); 2 (for loans over AED 10 million);
5 (if bank buyout)
UNITED ARAB BANK
UAE Nationals & UAE Residents
70 5 25 <85 <65 4.99-5.99 15,000 Mandatory 1
<2 (of the amount repaid/outstanding); 0 (after 5 years)
<2 (for the first 5 years); 0 (thereafter)
1.�(*)�The�above�lenders�reserve�the�right�to�change�their�product�policy,�fees�and�charges,�interest�rates�and�other�credit-scoring�criteria�at�any�time�without�prior�notice.
2.�Banks�will�generally�only�finance�properties�from�developers�on�their�approved�lists.
John�Charcol�Middle�East�is�an�independent�mortgage�broker�based�in�Dubai.�For�queries�or�assistance�in�relation�to�mortgages,�contact�Aimee�Garraway�at�John�Charcol�Middle�East�Toll�Free�on�800�JCME�(5263)�or�+971�(4)�341�7466�if�dialling�from�outside�the�UAE,�or�by�email�to�[email protected].
Note:
Over�the�last�three�months,�local�and�international�lenders�in�the�UAE�have�continued� to� strengthen�and� improve� the�mortgage�products�on� offer.� Lenders� who� in� the� previous� quarter� reduced� their� rates�have� kept� them� low� while� other� lenders� are� now� following� suit.�Local�rates�are�still�around�the�4.99%�mark�for�80%�financing,�with�certain�developments�availing�85%�for�expatriates�and�90%�for�UAE�nationals,�both�in�Dubai�and�Abu�Dhabi.��
There�is�still�great�interest�from�clients�wanting�to�move�their�existing�mortgages� from� one� lender� to� another,� enabling� them� to� take�
advantage�of� the� lower� rates.�For�example,�clients�with�an�existing�mortgage�of�AED�1.5�million�based�on�a�mortgage�rate�of�7.5%�over�a�25-year�term�can�reduce�their�payments�by�up�to�AED�2,300�per�month�if�they�were�to�switch�to�a�new�rate�of�4.99%.�
The� improvement� in� mortgage� products� has� not� just� stopped� at�interest/profit� rates,� we� have� also� witnessed� a� number� of� lenders�either�reducing�or�removing�their�Early�Repayment�Charges.�This,�we�believe,�will�kick�start�a�‘remortgage�market’�and�provide�clients�with�the�flexibility�seen�in�a�more�mature�market.
John Allen BSc MRICS
Paul Maisfield BSc (Hons) MRICS
Judy Lam Jenny Weidling
Director - Research, Consultancy and Valu-ations
GM & Head of Professional Services, Abu Dhabi
Regional Research Manager Senior Research Analyst, Dubai
+971 4 403 7777 +971 2 626 2660 +971 4 403 7777 +971 4 403 7777
[email protected] [email protected] [email protected] [email protected]
Julia Knibbs John StevensBSc MRICS
Brett Whalley Vineet Kumar
Senior Analyst, Abu Dhabi Director - Property Management Head of Corporate Services Head of Business Development
+971 2 626 2660 +971 4 424 9444 +971 4 403 7777 +971 4 403 7777
[email protected] [email protected] [email protected] [email protected]
08 For additional information call +971 4 403 7700 or email [email protected]
Asteco Property Management LLCWith�over�25�years’�experience�in�the�Middle�East,�Asteco’s�Professional�Services�team�brings�together�a�group�of�the�Gulf’s�leading�real�estate�experts.
Asteco’s�network�of�offices� in�Abu�Dhabi,�Al�Ain,�Dubai,�Northern�Emirates,� Qatar,� Bahrain� and� Jordan� not� only� provides� a� deep�understanding�of�local�markets�but�also�enables�us�to�undertake�large�
instructions�where�we�can�quickly�apply�resources�to�meet�the�client’s�requirements.
Our� breadth� of� experience� across� all� the� main� property� sectors� is�underpinned�by�our�sales,�leasing�and�property�management�teams�transacting�in�the�market,�and�a�wealth�of�research�that�supports�our�decision�making.�
Research
Asteco’s Research Department provides investors and developers with essential real estate knowledge to ensure clients understand their com-petitors, target markets and their long-term strategies.
Sales
Asteco’s internationally qualified team has enjoyed over two decades of experience within the highly dynamic Middle East property market.
Consultancy
Asteco’s Consultancy Department provides comprehensive advice on market trends and solid solutions, from project concept to completion. Asteco’s consultancy reports stimulate initial investment to financial institutions and other private equity providers.
Leasing
Asteco is the leading leasing agent in the UAE and is the sole agent for a number of key developments in the region.
Valuations
The team is fully independent in its approach and adheres to the Royal Institution of Chartered Surveyors’ (RICS) valuation standards.
Property Management
Asteco manages some 45,000 leases or approximately 3,500 buildings throughout the UAE, which include corporate portfolios and local and international funds.
BAHRAIN
QATARKINGDOM OFSAUDI ARABIA
JORDAN
UNITED ARABEMIRATES
Regional Offices and Operations
UNITED ARAB EMIRATES
Abu Dhabi
Dubai
Sharjah
Ajman
Ras Al Khaimah
Al Ain
DISCLAIMER: The information contained in this report has been obtained from and is based upon sources that Asteco Property Management believes to be reliable, however, no warranty or representation, expressed or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. Asteco Property Management will not be held responsible for any third-party contributions. All opinions and estimates included in this report constitute Asteco Property Management’s judgment, as of the date of this report and are subject to change without notice. Figures contained in this report are derived from a basket of locations highlighted in this report and therefore represent a snapshot of the Dubai market. Due care and attention has been used in the preparation of forecast information. However, actual results may vary from forecasts and any variation may be materially positive or negative. Forecasts, by their very nature, involve risk and uncertainty because they relate to future events and circumstances which are beyond Asteco Property Management’s control. For a full in-depth study of the market, please contact Asteco Property Management’s research team. Asteco Property Management LLC. Commercial Licence No. 218551. Paid-up Capital AED4,000,000.
611
611
311
11
11
11
11
44
44
44
311
311
311
611
611
1
1
Palm Ju
meirah
2
2
Jum
eirah B
each R
esiden
ce
3
3
Du
bai M
arina
4
4
Jum
eirah Lakes To
wers
5
5
Du
bai M
edia C
ity
6
6
Du
bai In
ternet C
ity
7
7
Kn
ow
ledg
e Villag
e
8
8
Disco
very Gard
ens
9
9
Jum
eirah Park
10
10
Jum
eirah Islan
ds
11
11
Mead
ow
s
12
12
Sprin
gs
13
13
Emirates H
ills
14
14
Lakes
15
15
Green
s
16
16
Tecom
C
17
17
Al B
arsha
18
18
Green
Co
mm
un
ity
19
19
Intern
ation
al Med
ia Prod
uctio
n Zo
ne
20
20
Jum
eirah V
illage
21
21
Du
bai In
vestmen
t Park
22
22
Jum
eirah G
olf Estates
23
23
Du
bai Sp
orts C
ity
24
25
24
Mo
tor C
ity
25
26
Arab
ian R
anch
es
26
27
Du
bailan
d
27
28
Du
bai Silico
n O
asis
28
29
Intern
ation
al City
29
30
Mird
if
30
31
Deira
31
32
Al M
uteen
a
32
33
Bu
r Du
bai
33
34
Sheikh
Zayed R
oad
35
36
Bu
siness B
ay
34
35
Du
bai In
ternatio
nal Fin
ancial C
entre (D
IFC)
37
38
Jum
eirah
38U
mm
Suq
eim
36
37
Do
wn
tow
n D
ub
ai
Du
bai M
etro - R
ed Lin
e
Du
bai M
etro - G
reen Lin
e(O
pen
ing
end
of 2011)
11Sh
eikh Zayed
Ro
ad
311Em
irates Ro
ad
611D
ub
ai Ou
ter Byp
ass Ro
ad
44A
l Kh
ail Ro
ad
Du
bai P
rop
erty
Map
Arab
ian G
ulf
To Sh
arjahTo
Ab
u D
hab
i
For
add
itio
nal
info
rmat
ion
2 eas
y st
eps
to u
se th
is c
ode
Dow
nloa
d an
y fre
e Q
R Re
ader
App
sui
tabl
e fo
r yo
ur m
obile
from
w
ww
.ast
eco.
com
/qrc
ode
1Sc
an th
is c
ode
usin
g th
eQ
R Re
ader
App
with
you
r m
obile
2
the right move
aste
core
po
rts.
com
Ab
u D
hab
iD
ub
aiQ
atar
Jord
anN
ort
her
n E
mir
ates
Q2
rep
ort
s av
aila
ble
fo
r
New
Qat
ar P
rem
ium
Rep
ort
ava
ilab
le a
t w
ww
.ast
eco
rep
ort
s.co
m
Co
min
g s
oo
n A
bu
Dh
abi O
ffice
Pre
miu
m M
arke
t R
epo
rt a
nd
D
ub
ai R
esid
enti
al P
rem
ium
Mar
ket
Rep
ort
.
Cust
omer
Man
agem
ent:
+97
1 4
403
7700
Cust
omer
Man
agem
ent@
aste
co.c
om