Interview: Nakheel discusses the changing face of Dubai property

Interview: Nakheel discusses the changing face of Dubai property

Dubai

Dubai has long been associated with luxury developments and extravagant architecture, but the emirate’s property market continues to grow and mature – and it’s a change that is welcomed by developer Nakheel.

The company behind the iconic Palm Jumeirah was in London at The Dubai Property Show this month. In an exclusive interview with TheMoveChannel.com, Chief Commercial Officer Aqil Kazim discussed the changing face of the Dubai real estate.

Here are seven insights from inside Dubai’s property market:

1. Speculators are being replaced by end users

“We’re seeing a shift from speculator market to a more end user market, which is what Dubai was looking to do anyway. It’s very healthy. Today, we sell to end users more than speculators and this is what we’re all about. Reasons to invest are perhaps rental yield, perhaps the lifestyle of Dubai, perhaps you have family and friends there, perhaps you want a second home.”

“The situation in Dubai was… the speed at which capital appreciation was happening was just too fast and a lot of people wanted to jump on that opportunity, which is not wrong, but it’s not something that we encourage. We would like some speculation, but not the entire thing based on speculation.”

2. Cooling prices are not a concern

Dubai’s prices cooled last year, but the mood is positive in the real estate industry.

“I call that a correction more than anything else. There are a few factors causing that – overall, there’s a global effect. Interestingly, rentals haven’t dropped as fast as prices have dropped, so the yields are actually increasing – again, it’s becoming more and more attractive for people who are looking into buying and investing and leasing or even choosing it as a home because they’re getting better prices. As far as Nakheel is concerned, we have projects in both high end categories as well as investment categories, so we have a variety of options.”

3. Brits: Nakheel’s third largest group of investors outside the Middle East

British investment in Dubai has been there for many years, says Kazim.

“The relationship between the two cities of London and Dubai has been a close relationship. There are a lot of similarities. Both are central hubs for trade, finance. The reasons to select Dubai are the sunshine throughout the year, the cultural scene is very compatible for what British investors look for – we have more than 170 nationalities in Dubai. A simple example I keep giving is the education sector: we have a lot of boutique syllabuses. If I were from Japan and I wanted my son to go to a Japanese school, that option is available. Korean schools. The number of British curriculum A Levels, GCSEs, all of them are available.”

4. The Expo 2020 boost is starting now

Dubai is hosting the World Expo in 2020, something that is widely expected to give a boost to Dubai’s property market.

“I think now’s the time for it to start,” comments Kazim. “We’re in 2016, the event’s in 2020, and it’s a large scale project. We sell plots of land to third party developers. Those developers who bought land from us in the past have started to construct projects, purely because they’ve seen demand rising out of projects like Expo.”

5. Tourism: There’s a clear demand for 3-star hotels

Dubai is associated with high-end homes and luxury hotels, but there is growing demand for 3-star hotels in the emirate.

“As far as hospitality is concerned, there’s a clear demand for 3-star hotels. Not to say that 5-star is not in demand, but Dubai’s target is to achieve 20 million annual visitors and tourists by the year 2020. We’re still quite far off – we’re at 14.5 million right now – so the number of rooms has got to increase.”

6. Oversupply is not an issue

Despite some media reports, Nakheel is not concerned about the possibility of oversupply in the market.

“We deliver projects on a feasibility basis and it has got to be able to fulfil some kind of demand for us to launch it. There are reports out there talking about oversupply. I don’t know, I’m probably an optimist, but you’re looking at a city that has ambitious growth plans in term of resident population. Even if that growth was half achieved, we would be in short supply, not oversupply. We wouldn’t be building projects if it wouldn’t be fulfilling a certain demand.”

7. On the growing number of tall buildings around the world…

“Competition is always good! Dubai is not a very old city – it’s been around for 50 years or so,” he adds. “We want to be competitive. And a lot of these [landmarks] are value propositions – having the tallest tower attracts tourists, having the biggest mall attracts a certain type of clientele. You will notice that the architecture of Dubai focuses a little bit on the vanity side, you’re quite right. It’s important to attract tourists on a repetitive basis – as a tourist, I want to be able to see something new every year.”

Read the full interview at TheMoveChannel.com.

— ENDS —

 

Notes to Editors

About Lead Galaxy and TheMoveChannel.com

Founded in 1999, www.TheMoveChannel.com is the leading independent website for international property, with more than 1.4 million listings in over 100 countries around the world, marketed on behalf of agents, developers and private owners.

TheMoveChannel.com is one of more than a dozen international property sites operated under the Lead Galaxy brand. Lead Galaxy provides online marketing solutions to thousands of property companies worldwide, focusing on portal listings, email marketing, qualified leads, paid search and social media advertising.

The business is headquartered at 24 Jack’s Place, Corbet Place, Shoreditch, London, E1 6NN.

——————————-

Do you need comment or statistics for an international real estate article? Our experienced editorial team and management are happy to collate data, provide example properties, or offer insightful comment to support your publication.

Please contact Ivan Radford on ivan.radford@themovechannel.com or +44 (0)207 952 7221

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Feature property listings in your publication!

Our technical team has developed a great new solution for content publishers that allows the addition of high impact advertising units, which can be configured to show property listings, relevant to a type of property, country, region or a specific location.

There are 2 types of implementation:

  • Standard Ad Units: These show in 120,600, 160×600, 300×150, 300×250, 300×500, 300×750 and 728×90 formats, with a varying number of listings showing in each version.
  • Dynamic Portfolio: This is a completely configurable panel, where you can choose the number of columns and rows, plus the size of the listings and dedicate a section of a page, or even a whole page to a set of properties.

Please contact Ivan Radford on ivan.radford@themovechannel.com or +44 (0)207 952 7221

Top of the Props: Demand for UAE property hits nine-month high

Top of the Props: Demand for UAE property hits nine-month high

Dubai Italy Spain Thailand United Arab Emirates United States
  • Demand for UAE property hits nine-month high
  • Spain remains world’s most popular property destination
  • Demand for Italian property up
  • Thailand attracts more overseas buyer

Demand for property in the UAE has hit a nine-month high, according to new research from TheMoveChannel.com. Buyers continue to flock to Europe, but investors are equally keen to buy in Dubai, reveals the portal’s latest Top of the Props report, with the federation re-entering the world’s top 10 destinations.

Spain was the world’s most popular country in March 2015 for the second month in a row, according to TheMoveChannel.com’s Top of the Props report. Spain’s bottoming out prices and the weak euro has prompted a surge in interest from overseas buyers keen to snap up a holiday home bargain. This is the third time in four months that Spain has been the most popular country on TheMoveChannel.com.

The USA rebounded back from its drop in the previous month, with its share of enquiries jumping from 4.66 per cent to 7.2 per cent. That rebound was enough to see the country leapfrog into second place. The appeal of South America weakened, as Brazil slipped from second into sixth, just above France, which dropped one place into seventh.

Thailand continued its climb up the charts: after rising from eighth to seventh in February 2015, March saw its share of enquiries increase even further to 3.95 per cent, taking the country up three spots to fourth.

One of March’s highest climbers was the UAE, which rose from 15th place into 11th in February 2015, before rising up March’s ranks for a second month in a row. The UAE is now the eighth most popular destination on TheMoveChannel.com, its best ranking since June 2014. This is only the third time it has been inside the Top 10.

The UAE’s popularity is fuelled by Dubai, which accounted for almost all of the enquiries. The market has cooled in recent months, partly as a result of higher transfer fees introduced to cap speculative investment, but demand continues to improve on TheMoveChannel.com. Enquiries for UAE real estate were 32 percent higher in 2014 than 2013, although they remain 45 per cent below the levels recorded during the 2008 market peak.

2015 has seen that trend continue, with enquiries up 72 per cent in real terms in Q1 2015 compared to Q4 2014. In the first three months of the year, the UAE was the 10th most popular destination on TheMoveChannel.com, ahead of Cyprus and Greece.

TheMoveChannel.com Director Dan Johnson comments: “Even after the soaring price rises of recent years, Dubai property values are still below peak values, according to Cluttons. Combined with a lack of inheritance tax and the appeal of rental income, demand for property in the emirate remains strong, even following a slight market cooldown.

“The UAE currency is pegged to the dollar, which has made it more expensive for European buyers, while the rouble’s plunge has hampered Russian interest, but interest is still high on TheMoveChannel.com from Chinese buyers, as well as Indians, Brits, Americans, Canadians, and other investors from the Middle East and Hong Kong. In just three months of 2015, the UAE has already received more than 60 per cent of 2011’s total number of enquiries.”

Europe, though, remains the primary driver of activity on TheMoveChannel.com in 2015, with three out of March’s five top destinations located in the eurozone. Interest in Italian property soared in March 2015, climbing three places to account for 3.19 per cent of enquiries, while Portugal returned to the top three destinations for the fifth time in the past six months. Portugal now accounts for 1 in every 20 (5.85 per cent) enquiry on the site.

— ENDS —

Notes to Editors

About Lead Galaxy and TheMoveChannel.com

Founded in 1999, www.TheMoveChannel.com is the leading independent website for international property, with more than 800,000 listings in over 100 countries around the world, marketed on behalf of agents, developers and private owners.

TheMoveChannel.com is one of more than a dozen international property sites operated under the Lead Galaxy brand. Lead Galaxy provides online marketing solutions to thousands of property companies worldwide, focusing on portal listings, email marketing, qualified leads, paid search and social media advertising.

The business is headquartered at 24 Jack’s Place, Corbet Place, Shoreditch, London, E1 6NN.

——————————-

Do you need comment or statistics for an international real estate article? Our experienced editorial team and management are happy to collate data, provide example properties, or offer insightful comment to support your publication.

Please contact Ivan Radford on ivan.radford@themovechannel.com or +44 (0)207 952 7221

——————————-

Sign up to our Daily International Property Newsletter:

– Daily updates on property market news headlines

– Quirky stories from around the world of property

– Hot properties being launched internationally

– Useful guides, surveys, research and trends

– Gossip, lists and other property chit chat

Sign up here: http://www.themovechannel.com/my/subscriptions/

——————————-

Feature property listings in your publication!

Our technical team has developed a great new solution for content publishers that allows the addition of high impact advertising units, which can be configured to show property listings, relevant to a type of property, country, region or a specific location.

There are 2 types of implementation:

  • Standard Ad Units: These show in 120,600, 160×600, 300×150, 300×250, 300×500, 300×750 and 728×90 formats, with a varying number of listings showing in each version.
  • Dynamic Portfolio: This is a completely configurable panel, where you can choose the number of columns and rows, plus the size of the listings and dedicate a section of a page, or even a whole page to a set of properties.

Please contact Ian Spencer on ian.spencer@themovechannel.com or +44 (0)207 952 7224

Dubai: Still the Next Big Thing?

Dubai

 

When Dubai is mentioned, images of high-rise buildings, high-success industry, new-found celebrity culture, ‘Media City’, and profit from excellent rental returns spring to mind. Dubai has become the best known of the United Arab Emirates (UAE) and has achieved international acclaim for its real estate development, putting it firmly on the map. The second largest Emirate after Abu Dhabi, Dubai was well-situated geographically – between Europe and Asia – for business and property development, and the mere 7-8 hour flying time from the UK as well as having no capital gains or income tax, only enhanced its appeal.
 
This initial development of this once primarily Arab Emirate, now home to a fast-growing population of which 80% is from overseas, resulted in a shortage of rental properties and therefore a large number of people reaping large profits from the real estate market. Now, however, there are signs that this most well-known Emirate is moving into a new era, as is documented in Real Estate TV’s ‘Next Big Thing Dubai’ programme showing on 11th May on Sky channels 273 and 274 and on demand on Virgin TV and at www.realestatetv.tv.
 
The programme allows viewers to discover why Dubai can still be seen as the ‘Next Big Thing’, even following its huge development of recent years and will allow an insight into the future for this powerful Emirate. ‘Next Big Thing Dubai’ considers the effect of new transportation links that are under development, such as the new metro system due for completion in 2012 as well as new roads being developed, and also the effect of the new industry that has moved in, making the Dubai economy now around 94% non-oil related.
 
Dubai’s plans remain ambitious, and in looking towards the future, impressive developments are in planning or already taking place, in the ever-prevalent drive to attract tourism. Alongside this, recent legal changes have made it easier for foreign property investors, giving them greater protection in an uncertain world. Dubai’s constant evolution has kept it ahead of the game in terms of growth and development and it is this that could see it head towards an even brighter future. As Jo Sinnott, presenter of ‘Next Big Thing Dubai’ concludes ‘Dubai is growing even faster than before and for property investors, could once again be the ‘Next Big Thing’.
 
Tune in Sunday 11th May at 10pm to Real Estate TV on Sky Channels 273 and 274 and on demand on Virgin TV and at www.realestatetv.tv to watch ‘The Next Big Thing Dubai’.
 

Emerging Emirates: Tune in to Ras Al Khaimah and Ajman

Dubai

Often blinded by the leading light of Dubai and more and more overshadowed by the growing property market of Abu Dhabi, Ras Al Khaimah and Ajman can sometimes be thought of as the forgotten Emirates of the UAE. Things are, however, changing. Ras Al Khaimah (RAK) – the northern-most Emirate and one traditionally known for mining and industry – and Ajman – the smallest Emirate known for fishing and its port – are following in the footsteps of Dubai’s success and growing their economies in a new direction. In both of these United Arab Emirates, property is becoming the new arena of expansion and one that is proving big business for many.

This Sunday 4th May 2008 is set to see an insight into these interesting Emirates and their growing property markets with the ‘Next Big Thing Ras Al Khaimah and Ajman’ programme showing on Real Estate TV, the UK’s leading dedicated property channel, available on Sky channels 273 and 274 and on demand on Virgin TV and at www.realestatetv.tv. ‘Next Big Thing Ras Al Khaimah and Ajman’, is part of the Next Big Thing series showing Sunday nights on the channel, a series designed to shed light on the areas that are up-and-coming and on target to show good property investment returns in coming years.
 
Through the programme, viewers are given the chance to find out more about these lesser-known Emirates: their location, history, infrastructure development and plans for the future. Interest in both of these countries has dramatically increased in recent times and this positive growth is set to continue. Currently, however, excellent property bargains are to be found, with RAK, for example, boasting property prices that are averaging 50% lower than in neighbouring Dubai.
 
The comparisons with Dubai are interesting and something that is considered in the ‘Next Big Thing’ programme. Both of these Emirates are looking to Dubai’s terrific success and learning from it, and also seeing how to do things differently so as to avoid making the mistakes that may have been previously made by this powerful neighbour. Comparisons are clear, RAK is building Al Marjan, a man-made island off the coast, drawing comparisons with Dubai’s Palm, and Ajman is building ambitious tower blocks that are changing the skyline. As the programme reveals, however, there is more to these Emirates, with interesting desert and mountain developments also taking place that set them apart and make them interesting markets to find out more about.
 
Tune in Sunday 4th May at 10pm to Real Estate TV to watch ‘The Next Big Thing Ras Al Khaimah and Ajman’ and the following week to find out more about the booming market of Dubai.