Dubai : Affordable and safe living in Al Qassimiya

Dubai : Affordable and safe living in Al Qassimiya 

 The locale has always been popular among expat residents on a tight budget

The Al Qassimiya area of Sharjah is conveniently located near Al Ittihad Road, King Faisal Street and Corniche Road, and is known for providing a comfortable and, more importantly, safe living environment for all tenants within various apartments complexes. The facilities on offer include modern retail and shopping centers such as Mega Mall, Sharjah City Centre and Al Safeer Mall.

Also in the area is the Al Mahatta Museum which was the original site of the first airport that opened in the UAE in 1932. The museum offers children free access to educational movies and fully restored original propeller planes.

Well-known resedential complexes within Al Qassimiya include Manazil Tower 1 and Sunlight Tower which always been popular with residents who cannot afford expensive accommodation. In addition to affordable rents, they offer easy access to retail , health and educational facilities .

 There have, however, been problems with some residential buildings in the area being used as commercial properties. This is causing security problems due to access rights of those visiting commercial businesses in what some feel should be a restricted-access residential building.

In addition to this rental rates in Sharjah in recent years have seen increases of up to 15 percent in areas such as Al Qassimiya due to strong growth in the demand and lack of quality stock. Once an affordable area, now a one-bedroom apartment can cost as much as Dh26,000 per year, while a two-bedroom apartment can cost anywhere from Dh25000 to Dh 35,000. According to the Sharjah Ministry regulations , rents can only be increased for a tenant every three years ; however, new tenants who are moving in are being charged Dh2,000 to Dh5,000 more than what the other tenants have been paying. 

Despite all this, Al Qassimiya remains a popular resedential destination in Sharjah especially for those community to DubI along Sheikh Mohammed bin Zayed Road

The case of non-renewable tenancy contracts.

The case of non-renewable tenancy contracts.

Go through every detail of the contract and make sure you understand all clauses
has your tenancy contract of your ended and has the landlord demanded termination evection instated of renewal check if you have signed a nonrenewal tenancy contract usually tenancy contract are enwalled expect if they are particularly marked nonrenewable or may have some clauses that make them nonrenewal led also sometimes the landlords writes the nonrenewal clauses in ambiguous words which the tenant may be unable to catch at all times of signed the contract.

This strategy is applied by some landlords so they may not be found bound to adhere to any rent cap or in case of DUBAI the RERA rental index. When the landlord issues a nonrenewal contract for one year he can ask the tenant to leaf if the tenant disagree to pay the increased rent in this situation the landlord can avoid any rent cap clause and lease the property to a new titan on a higher rent .
If he tenant has signed and willingly accepted the non-renewable clause in the contract, then he has to comply with the terms and honor the agreement.

As a tenant, before signing either for the first time tenancy contract or renewal contract, it is pertinent to go through it thoroughly and understand all the clauses perfectly. Taking legal device could be helpful to avoid any disputes later. This is particularly useful for expatriates new to Dubai. Also, a tenant should remember that no landlord can forcefully make him sign a non-renewable contract. But the landlord is entitled to send a non – renewable contract when renewal for the new term with a one-year notice.

In case the tenant has signed a non-renewable contract unknowingly and does want to vacate the property, he can try negotiating with the landlord by expressing his desire to renew the contract and see if he agrees. Typically landlords are aware that most tenants would like to renew the lease after the expiry of the original lease. If the landlords and tenants reach a mutually beneficial agreement, the matter can be resolved amicably.

Property Tips

•    Ensure you have full understanding of the tenancy contract and tenancy rights
•    Negotiate with the landlord so you reach a mutually beneficial agreement.
•    Always prefer a renewable contract over a non-renewable one.

UAE residential project- what's new .

UAE residential project- what's new .

 

Most new development-are concentrated in the emirates of Dubai and Abu Dhabi .

After all that the real estate market in the UAE has been through times are a- changing. Real estate consultancies such as Jones Lang La Salle (JLL) and Asteco  have been studding the closely as always and the details from this research look promising. In 2012 rents were more or less stable in all emirates except towards _Q4 when they started to escalate.

In Dubai for instance, JLL has predicted that more than 40,000 residential units are scheduled to be released for occupancy over the next 2 year I.e before 2015. Of these, Asteco feels if construction  schedules are ad heard to, 2013 should see 5,400villas and 39,000 apartment ready for occupancy.

The most recent addition have been located mainly in Dubai Marina, discovery gardens, International City andJumeirah Lakes Tower, among others. The newer projects waiting on the anvil are in Downtown Dubai, Balqis residence at palm Jumeirah, the certium at IMPZ and silicon Gates at Dubai silicon oasis.Some homes are also ready in Dubai-land ,Business Bay  and Dubai sport City.
In Abu Dhabi, a notable upcoming residential devolopment is the Marasy which is located in Al-batten area.it comprises villa-style living developed mainly for UAE nationals. According to Asteco, apart from Marasy, there are no other remarkable new devolopment to look forward to in the first quarter of2013.

In fact what is interesting to note is that the rental gap between Abu Dhabi is not that much, and Abu Dhabi definitely offers quality living at affordable and value-based rental rates.

Moving past,there has always been a great demand for quality residential living in AL-Ain. Sahib Al Ashkhabad and shiebat al wahta ,two housing programs in one gated community, are slated to be the most coveted residential addresses inAl Ain. The community is located on a sprawling area of 500 acres and consist of  1,580 units looking to house more than 30,000 people.

Looking east there are no big developments worth mentioning. Cluttons  consultancy reports that in the emirates of Sharjah, the areas of Al Falaj, sharqan and Al fisht are the most desirable addresses to live even thought there has been a 15% increase in rent since October.

Dubai Real Estate : Office space market supply still high

Steady decline in price, demand for office space rentals has finally bottomed ou.

In late 2010, Landmark Advisory predicted that office supply in the UAE would”virtually double” by 2014. Despite all odds, with the global financial crisis topping the list, this prediction has come true.

There is currently a gross oversupply of office in the capital and Dubai. Rents have continued to fall in the past few years, with lot of them bottoming out finally in the last quarter of 2012. The steady decline of rents in commercial properties since 2008 seems to have stopped and slowed, and some areas like Dubai International Financial Center, even showed a modest 2% Increase in rental rates.

According to the Dubai Real Estate Market Overview, 1.4 million square meters have been added to Dubai’s office space last year. This is an addition to the already existing 6.1 million square meters of office space.

Landlords in the commercial sector have been offering competitive rates and incentives like rent-free months and customized office space fit-outs to attract. Some landlords have even split up their office units to maximize their potential. As a result, businesses are experiencing savings as much as 40% of their fixed costs that would have previously gone towards rent.

Quite surprisingly though, commercial space in malls both in the capital and in Dubai is high demand, and malls are enjoying full occupancy. In contrast, new office space in the capital has less vacancy than its counterpart in Dubai.

The good news is that 2013 will be the year that landlords will rejoice. Rental rates are either bottoming out or showing increase and the demand and interest in office spaces in picking up again, albeit a little slowly. Offices spaces on Shaikh Zayed Road, Jumeirah lakes Towers, Business Bay and Al Barsha look particularly promising.

Dubai Real Estate Tips:

·       Businesses get savings because of fall in demand and prices

·       Some areas in Dubai have seen modest increase in rental rates

·       Commercial space in malls in Dubai, Abu Dhabi in high demand.

Dubai Real estate news : Tenant relocation is a matter of choice or necessity?

Tenant relocation is a matter of choice or necessity?

Many residents are priced out of prime areas due to growing demand and ever-rising rental rates.

As commodities in so-called secondary locations, namely those along the Sheikh Mohammed Bin Zayed road(E311) corridor,continue to evolve, residents are taking advantage of lower rent rates and/or the opportunity to many tenants being priced out of prime developments due to growing demand and ever – rising rental rates.

Although existing tenants are protected by rental cap, which only allows an increase if rents fall below the area range stipulated by RERA, not everyone is aware of this, with some people forced out of their homes because landlords claim to be moving in themselves, or selling the property when, in fact, they’re simply looking for an opportunity to get higher rents from new tenants.

Again, many residents are oblivious to the fact that the owner has to give 12 months notice before they can evict the tenant, or simply decide to move out in order to avoid any hassle with the landlord.

Based on the RERA rental index,the prices for one-bedroom apartments in 

Dubai Marina/ Jumeirah Beach Residence range from Dh50,000 up to Dh90,000. 

According to listings on one of the most popular property search engines in the UAE, there are over 1,300 units advertised above the upper limit of that rang. Despite the fact that this number includes duplicate advertisements and furnished units that achieve premium, the total figure and the fact that new tenants are willing or have no choice but to pay the price or move to less desirable areas is alarming.

Even though rising demand is a result of the growing economy and consumer confidence, which is a positive indicator, if rates continue to grow at these levels, it won’t be long befor people have no choice but to leave Dubai for the more affordable neighboring emirate of Sharjah, at least for the short term.

In the long run, however, there is still a significant amount of

supply in the pipeline and this, coupled with new project launches, is likely to level out the supply-demand balance and keep rent hikes at bay.

Property Tips

·       Some tenants are forced out of their homes not aware of the rental cap.

·       Some are oblivious to the fact that landlords must give 12 months notice.

·       People might leave Dubai for cheaper Sharjah if rates continue to increase.

Dubai Real Estate: Buyer/renter beware remains relevant today

Buyer/renter beware remains relevant today

Preparation, research and communication will help you find the perfect property.

As real estate agents, we often find our clients making the same mistakes when looking for their dream home or property. Our responsibility is to inform and guide them to make wise choices so they are happy especially after their purchase. Indeed, it makes sense to have return customers and referrals. As such,let us identify the common errors we usually encounter as you can go about your search with a “buyer beware” attitude.

From the outset, you need to be clear if you plan to purchase the property for a home or investment as the two objectives may lead us to choose very different options for you. Once you are clear about the reason, we then ask you to identify your budget, whether buying or renting. This will save you from wasting time and getting emotionally attached to properties you means, so you avoid irrational decisions by taking a measured approach. In the case of mortgage clients, they should arrange for the pre-approval of funds, and cash investors should identify their allocation of funds. You can end up wasting a lot of time if you have arranged pre-approved funds. Renters need to be realistic about their budget and identify locations as per their style needs.

Sometimes buyers are not aware of all relevant costs associated with purchasing property. It helps to do some research first and, as an agent. We should provide a realistic picture of costs-from maintenance charges, agency/transfer fees and costs associated with taking up a mortgage. The market also calls for a cautious and diligent approach to purchasing off-plan so it is better to take legal advice especially regarding this.

Another common error is not investigating the quality of construction and maintenance record. Check the track record of developers and /or master developers regarding the maintenance of the property, and examine the finishing. Understanding the owners association’s role and interacting with the developer also helps.

     With families and couples, there is usually one person thats more rational than other. However, both need to be on the same page and have a unity of purpose. We have seen couples fighting once one becomes fixated on the property and other is not. 

We can’t be marriage counselors, but we do know those who are on the same page tend to walk away happier from their purchase. So, as with many aspects of life, preparation, research and communication will help you find the perfect property.

Dubai Real Estate Tips

·       Mortgage clients should see to it that they already have pre-approved funds.

·       Be cautious and always take legal advice when purchasing off-plan property.

·       Renters need to identify locations as per their lifestyles needs and budget.

Dubai Real Estate- Rent-to-own property-try before you buy

Rent-to-own property-try before you buy

 Prospective owners are not forced to buy property before having lived in it.

The rent-to-own scheme was put in place across the UAE with hopes of jumpstarting the residential market. In effect, it works as a ‘’try before you buy’’ system where prospective property owners are not forced to commit to an apartment or villa before having lived in it, with rental payments being put towards the sale price of the property if and when the tenant decides to buy.

Whilst you would be asked to give a deposit of 10 percent based on the agreed market value of the property before you move in, the remainder of your rent will be paid in more affordable installments.

Most rent-to-own contracts require a three-year commitment although some developers offer a two-year option. The rental price is usually fixed in the first two years, but may be subject to an increase in the third year. After the time lapse, you would have to decide on whether or not you will purchase the property. Alternatively, you would have the option to cancel the contract and be simply considered as having rented the property for those years.

If it does not turn out to be your dream home and you do not decide to purchase, you may have to vacate the residence to make room for prospective buyers who may be interested in giving the property a trial run.

Real estate agencies like Smith & Ken say that this practice gives tenants extra time to arrange a mortgage during the rental period, as well as enables them to use the rental payments as investments.

Sounds ideal. But before signing a contract, make sure you know a few things: are you being charged a premium rent? What percentage of that rent will be converted into equity? What mortgage options will be available if you buy and will you be charged any penalties if you don’t? And most importantly, is the property right for you?

Real Estate Tips

The rental price is usually fixed in the first two years

This practice gives tenants extra time to arrange a mortgage

After the time lapse, you have to decide to purchase the property.