Dubai Property Newsletter

Following an incident where two workers were struck by lightening, authorities in the UAE emirate of Ras Al Khaimah have asked construction companies to limit their operations during the rainy season. Saeed Rashed Al Nuaimi, Chief of Labour Office in Ras Al Khaimah, said when it rains it is common for scaffolding to fall and walls to collapse at construction sites.

Dubai Islamic Bank in partnership with Real Estate Regulatory Agency hosted over 50 real estate developers at a recent escrow forum. The forum provided a platform for DIB’s escrow account customers to communicate with RERA. As one of the largest escrow players in the market, DIB has been actively involved with consulting RERA on general issues related to the escrow regulations.

The Dubai-Jeddah Towers project in Saudi Arabia will be implemented on schedule, according to the CEO of Al Shoula Group, owner of the project, Gulf News has reported. Prince Abdul Aziz Bin Misha'al, CEO of the company has denied halting the SR7.24bn project as reported on television channels. The project is expected to be completed within three years.

Dubai's five per cent rent cap will remain valid in the absence of any new announcement, Gulf News has reported. An official from the Rent Committee at the Dubai Municipality said landlords still cannot increase the rents beyond five per cent. And tenants can file complaints with the committee if there is violation on the existing rent law.

The Tiger Woods Dubai, a member of TatweerTatweer Dubai, today announced it has successfully completed bulk earth works at the 55 million sq. ft. golf community development, enabling the project to progress to the next phase of construction. All remaining bulk earth works are now complete on the road network, commercial buildings, residential plots and Al Ruwaya Golf Course. The resulting effects on Al Ruwaya Golf Course, Tiger Woods Design's first project, is typography, with elevations reaching an 78 meters above sea level, including a difference of 29 meters between the lowest point, the lakes, and the highest point.

Sorouh Real Estate, Abu Dhabi’s second-biggest property developer by market value, is planning an 'affordable housing' project in the emirate to tap into the underserved market in the emirate. Gurjit Singh, Sorouh’s chief property development officer, told Bloomberg said the plan 'is currently on the company's drawing board'. Sorouh has more than $13bn of projects under way in the emirate.

Dubai's Real Estate Regulatory Authority on Wednesday announced the emirate's first residential and commercial rental price index. The commercial index provides the average rental rates for properties, based on road conditions, public parking, location, air conditioning, view and age of the building. Rental prices for residential properties are less clear. Properties are divided into apartments and villas, and are based on the size of the building only and no other criteria, reported Gulf News.

Prices of residential property in Dubai fell 8% in the fourth quarter of last year, according to a report by Colliers International. The report said the average price of 14 developments in the fourth quarter was Dhs1,770 ($481) per square foot, down from Dhs1,919 per sq ft in the third quarter. The number of sales in the fourth quarter also dropped 45%, the report added.

Dubai property development prices are likely to continue falling for a further six to nine months, Sherwoods Managing Director Iseeb Rehman has predicted. They will then bottom off between mid-2009 and the end of the third quarter.

Indian businessman Kabir Mulchandani has been arrested in Dubai on allegations of a multi-million dollar real estate fraud, media reports said. A senior official who is part of the investigation told The Times Of India that Mulchandani was in jail. Scores of investors have been allegedly defrauded of over $100m by Mulchandani, chairman of 'Dynasty Zarooni'. At least 10 members of an 'investment club,' which last year promised huge profits from the company's preferential access to real estate deals, have lodged complaints against Mulchandani, his Emirati business partner, Hilal Al Zarooni, their joint venture 'Dynasty Zarooni' and two other employees.