Thursday, September 17, 2015

GCC Investors show Stability and Strength to the Property Community Across the World

A new survey by global market research company YouGov paints a vibrant picture of the UAE and Dubai real estate property sector. The said survey revealed that 60% of investors expect the real estate market in Dubai to flourish even more in the coming 12 months.

It also found out that over half of home buyers (54%) feel a positive vibe with regards to the continuing growth of the Dubai real estate industry, and another 58%, or three-fifths expects an increase in sales and rental prices over the next year. All these factors indicate a buoyancy in the residential market of real estate in Dubai.

The research was initiated in preparation for an influx of thousands of real estate property investors for the Cityscape Global, one of Middle East’s largest real estate property event.  It will be held at Dubai World Trade Centre from 8 – 10 September, where more than a hundred local developers are expected to participate in the 14th edition of the event where they will showcase their latest projects.

The YouGov survey only shows that location is indeed a significant factor for investors to determine properties they will purchase in the Emirates. According to 861 UAE residents who were part of the survey, the most attractive and in-demand real estate are the ones near public transportation (56%), followed by the ones close to grocery stores (44%), shopping malls (41%), and Mosques (37%).

The survey’s sponsor is Informa, Cityscape Global’s organizers. The study further reveales that studios and one-bedroom apartments are growing in popularity in the UAE real estate market, with investors shifting to more affordable and more ergonomic apartment designs.

Jumeirah Golf Estates is among the developers to first take note of this trend, and will capitalize on this opportunity as they unveil their latest development, AlAndus, which will offer a new definition of affordable luxury.

Yousuf Kazim, Jumeirah Golf Estate’s CEO said: “Jumeirah Golf Estates has had a productive first half of the year and is continuing to reinforce the growth momentum plans for ongoing development. As the progress of construction continues, we are continuing to partner with businesses to ensure our residents are provided with the ideal living community.”

Meanwhile, Sky View Real Estate Brokers and Myra Real Estate Development will also be offering end-users and investors an affordable option with their Botanica Project located in Jumeirah Village Circle.

Sky View Real Estate Brokers’ Director Kash Kanjwani said: “For any mature market there has to be balance between luxury properties and affordable properties.  Previously developers had tried to launch affordable properties, however due to speculators and high demand some of these properties appreciated at such high rate that they reached the same price point as luxury properties.”

“With new regulations in place, the speculation of properties has been controlled and because mortgage LTV has been limited at 50% for off plan projects, most developers are offering easy payment plans and the right pricing.  Demand for affordable housing is now greater than ever and we look forward to showcasing our next project at Cityscape Global.”

This year’s Cityscape Global is supported by the Dubai Land Department and Foundation partners: Emaar Properties, Dubai Properties and Nakheel; Gold sponsors: Arma Properties; Garanti Koza and Al Marjan Island; Silver Sponsor Sobha LLC; District Operator Sponsor: Ejadah Asset Management; Project Marketing Sponsor: Aqua Properties and Property Registration Trustee Partner: Tamleek Property Transfer.

Wednesday, September 9, 2015

Luxury Hotel in RP Global’s Tower to be Operated by Jumeirah Group

The world-renowned hospitality and hotels company Jumeirah Group has been appointed by leading Dubai real estate property development company RP Global to operate a mixed-use property within its US$1 billion iconic tower. Dubbed the Jumeirah Business Bay, the new property will have 200 hotel rooms, 325 services apartments, and 290 luxury residences.

Intended to be an urban luxury destination, the new property will showcase a dynamic and thrilling sky deck with a bar on it. This will give its visitors a unique view of Downtown Dubai, as well as the buildings found in Business Bay. The tower will house a variety of food and beverage shops, banquet and conference areas, and an award-winning Talise Spa and Health Club. The tower – designed by Atkins Global, the same firm behind the world-famous Burj Al Arab – will have a total floor area of over 3 million square feet once completed.

In relation to the new agreement between the Jumeirah Group and RP Global, Jumeirash Group’s President and Group CEO Mr. Gerald Lawless says: “RP Global is a company committed to excellence, and we look forward to working together and operating this outstanding property. Jumeirah has a reputation for luxury and exceptional hospitality, and our partnership reflects the strong synergies between Jumeirah Group and RP Global. As Dubai moves towards its tourism vision of receiving 20 million visitors a year by 2020, we are proud to be strengthening our Jumeirah portfolio in Dubai.”

“We are investing close to US$1 billion of our own resources into Dubai’s real estate sector to develop a world-class tower that will be operated by the esteemed luxury hospitality brand, Jumeirah Group. RP Global is committed to superior quality and timely delivery and like the Jumeirah Group, we strive to create well designed, innovative lifestyle concepts for our buyers. Dubai’s resident population is growing rapidly and we are looking forward to adding an iconic tower to Dubai’s skyline in partnership with Jumeirah”, says Dr. Ravi Pillai, Chairman of RP Group of Companies, the holding company of RP Global.

The new management agreement was inked between the two companies in a ceremony which took place at the Burj Al Arab, Jumeirah Group’s flagship property. The Jumeirah Group has a number real estate in Dubai and all over the world. It currently has 23 hotels in operation across the Middle East, Europe, and Asia. It also has 25 more in the pipeline that will be established and run under both Jumeirah and Venu brands.


RP Global is the property development and real estate Dubai company of RP Group of companies, a conglomerate founed by Dr. Ravi Pillai. Its operations can be found across 20 cities and 9 countries. The group has a wide range of investments in hospitality, construction & industrial, education & trading, and healthcare & wellness services. Currently, it has conducted projects amounting to US$25 billion globally.

Thursday, September 3, 2015

Legal Reference for Real Estate Brokers in Dubai

With the re-emergence of real estate in Dubai, the emirate’s legislation is hard at work in making sure that both the developer’s and the buyer’s rights are being upheld with enforcing and creating regulations, providing the legal framework in governing it.

A huge part of the real estate sector is brokerage, and it’s a stone that wasn’t left unturned. It is worth mentioning that the real estate brokerage business before 2006 was organized by the provisions of the Federal Commercial Transactions Law No. (8) of 1984 under Brokerage Contract Chapter. Such provisions are still the reference in cases not stipulated by private law. After 2006, the executive regulation No. 85 of 2006 on the organization of real estate brokers register in the Emirate of Dubai was issued to govern Law No. 7 of 2006 regarding real estate registration in the Emirate of Dubai, and organise a special register for licensed real estate brokers. The executive regulation has done well in preventing non- licensed brokers from conducting any real estate brokerage process (Article 3 the Executive of Regulation).

In effect, such a vital sector has become subject to the control of government, which increased the level of confidence from investors.

In this article, you’ll be able to read the most important duties and rights of a real estate broker in Dubai, as outlined in the Executive Regulations of the real estate brokers register in Dubai.

Below are the most important duties and obligations of the broker (Articles (14 to 25):

I. General obligations of the broker (Supervisory entity: The department of property and land)
  1. Commitment to the ethics of the profession (Article 14)
  2. Commitment to the maintenance of a special register of all transactions held by him (Article 15)
  3. The broker’s commitment to maintain documents related to sales (Article 15)
  4. The broker’s commitment to submit all information and documents requested from him (Article 16)
  5. The broker’s commitment, in case of selling on map, to keep a copy thereof (Article 15)
  6. The broker’s commitment not to mediate in a transaction in contradiction with law or regulations in force in the Emirate of Dubai deal (Article 18)
II: The broker’s commitments towards the parties of the transaction:

  1. The broker’s commitment to deliver a carbon copy of the sale documents to contract parties when so requested by any (Article 15)
  2. The broker’s commitment to inform his client of all details of the negotiations, the stages of mediation and any other necessary information (Article 17)
  3. The broker’s commitment to inform the other party of all material matters relating to the agreement and which are necessary to deny ignorance, and to inform the two parties of all the circumstances he knows and be responsible before them for any fraud or mistake on his side (Article 17) and Article (19)
  4. The broker shall be liable for any loss or damage incurred by any of the parties as a result of his work through fraud, deception, without taking into account the norms to be followed or violation of the requirements of the code of conduct (Article 22)
  5. The broker shall not be entitled to claim commission or to be reimbursed the expenses incurred (if he works for the benefit of the other contracting party in violation of its commitments to his representative, or if he accepts from the other party a promise to obtain a benefit, in circumstances in which the rules of good faith and the code of honor prevent accepting such promise) (Article 23) and this article shall be deemed an application a code of honor.
  6. If he authorized many brokers to be jointly liable for its work, unless permits them to work individually, (Article 24)
  7. If he authorizes many people to work as one broker in a joint action, so as to be jointly liable for the implementation of this authorization, unless otherwise agreed, (Article 25)
  8. The broker’s commitment to be honest with regard to any payments, securities or other things given to him by any of the parties to keep or to deliver to one of the parties, and must execute or deliver according to what is agreed upon and the rules of the Secretariat shall apply to the broker with regard to these matters.This article is important as it relates to the provisions, particularly Article 404 of the Penal Code No. 3 of 1987, which reads: ((Anybody who embezzles or squanders funds, bonds or any other movable money, in a way that causes harm to the rightful owner, when it was handed to him as a deposit, lease, mortgage, borrow, use or agency, shall be punished by imprisonment, fine or both.
  9. The broker’s commitment not to establish himself as a party to the contract made through it (as he may not be an agent) even if authorized by a contract party, and the penalty resulting from the conclusion of the contract itself shall be depriving him of the commission in spite of being authorized by the party directed him to conclude the brokerage contract (Article 20)This article should be read deliberately and should draw the attention of every real estate broker, as it is among the guarantees granted by the Regulation to the investor, it denies the real estate broker’s right to commission when violating his duties, and prevents the broker to conclude a contract as a party to the contract.As the real estate broker in this case shall not be entitled to any commission, and the clear purpose of the text is a confirmation of restriction being adopted by the legislature in commercial transactions Act, which deprived the broker of taxi brokering whilst being a party to the contract in accordance with the provisions of Article (263) of the Federal Commercial Transactions Law.
Broker Wage

Included in the provisions of articles (26 up to 33), which include the provisions determining the rights and wages of real estate broker set out in the Federal Commercial Transactions Law, the most important of which are:

  1. For the broker to be entitled to his commission the contract should be in writing, registered and indicates the conditions and the contract shall be referred to in the real estate register (Article 26)
  2. The broker’s wage shall be determined through agreement, otherwise the norms shall be prevailed (Article 27)
  3. The broker shall not be entitled to his brokerage fees unless it led to the conclusion of a contract between the two parties, such entitlement shall be based on the conclusion of the contract of sale and registration thereof in the department, unless otherwise provided in the agreement. In case the sale contract is suspended on an agreed upon condition, the real estate broker shall only be entitled to the contract when the condition is achieved (Article 28)
  4. In case the brokerage contract is terminated, the broker may claim his fees in accordance with the agreement, unless fraud or fatal mistake is proved (Article 29)
  5. If the broker’s instructions or negotiations did not lead to agreement of the parties, he shall not be entitled to any compensation, expenses or costs incurred, unless the Brokerage contract stipulates otherwise (Article 30)
  6. If more than one broker is involved in mediation or negotiation for one party, they all share as if one broker and payment shall be divided in accordance with the terms of the contract (Article 31)
  7. If a party contracted with many brokers independently on one subject, and one of them succeeded to complete the process, he shall be entitled to full payment apart from others (Article 32)
  8. The broker shall be entitled to fees from the party that authorized him, and if both parties were separately liable for the payment of wages owed to him even if those two parties have agreed – with each other – that one party shall bears the full payment, because their agreement is not an argument as it is from a third party (Adapted from article 33)
  9. Governed by the provisions of articles (34 up to 41) and confined to two parties:
I. The quartet committee formed by the Chairman of Dubai department of territory

(In case of previous or subsequent amicable agreement to resolve the dispute through the committee) in accordance with the provisions of Articles 34 and onwards of the above mentioned Regulations.

II. Dubai Commercial Court of first instance

If there is no such agreement (the previous or subsequent amicable agreement to resolve the dispute by the committee formed at Property and Land Department in Dubai) the exclusive jurisdiction of the Commercial Court of First Instance at Dubai Courts, that has general authority to address the issue in the light of evidence presented, shall remain.

Conclusion
 
Traversing on the tightrope of the law is by far the most important requirement any player in the real estate sector must fulfil. Reviewing the provisions of the Regulations set by the policy makers aims to achieve a balance that’ll bring about stability in an often-times volatile market. With a sector as big as real estate contributing to the overall economy of the United Arab Emirates, everything in it must be controlled and in order. The real estate brokers is one of the main players in this important industry, they can affect the entire picture. That’s why they need to be as neutral and objective as possible, to submit under the law and be honest in their affairs at all times.