Habitat

Email from Yogesh Wadke.
The first one comes from Yogesh Wadke who wants your comments on property appreciation and the overall rating as a community, of International media Production Zone in Dubai. He has bought a 2-bedroom apartment in Centrium towers, an ETA Star development, in April 2007. Over to you, Ashwin?

Ashwin's answer
Well IMPZ is where a lot of international film companies are coming in like universal studios etc. MGM some Bollywood people are also coming in. There is 1 very big 5 star hotel coming up there as well. The proximity to the new Jebel Ali airport and Dubailand make's it a very good location to buy property in. ETA star is one of the leading developers in Dubai. So all these factor make it a good investment depending on what payment plan he bought at, because there are lots've financing options available with ETA. Also when Centrium was launched it was launched at an average of 900 AED/Sqft. Today it is not les than 1200-1400 depending on the view and the floor.

Email from Mrs Syed.
Mrs Syed has written in to enquire about Sports city. She has made an investment in Destiny by Chapal?Properties, and would like to know:
a) the appreciation expected for the property;
b) the current rentals for studio apartments here;
c) the completion time-line and finally, what is the demand for property in sports city, when compared to the rest of Dubai?

Ashwin's answer
Sports city, again location wise, is right next to IMPZ and across from JVS. Sports city apartments were launched at 600-700 AED/Sqft. Today there's nothing available below 1000 AED/Sqft. Sports city has really picked up, there are no plots available for investors in the market who want to construct buildings there, so right now its very much in demand. I suggest to the lady that she holds on to the property for at least another 3 months before she sells it. Chapal is a group I donＵ know personally, I havenＵ sold any of their properties but have seen a lot of their advertisements. Anything in sports city is good investment so you can't go wrong. Anything that you have bought in Dubai at launch price, you'll be laughing.

Email from Imran.
Our third email today comes in from Imran who is asking about International city. You know, IＷe heard that area is becoming more and more popular as it is one of the few affordable places to live in, in dubai at the moment. What do you think, Ashwin?

Ashwin's answer
Emirates Cluster was launched b Nakheel around 2 months ago, and they launched them at the current International City prices. They sold studios at 400-450 k and the1 bedrooms at 580-700 k. To pay 15 % Premium is too much because im personally selling them at 10-12 % premium.

The difference between Emirates Cluster and the rest of the International City is tat you can get financing for the Emirates Cluster today from Tamweel along with others. Other Clusters in International City May not be financed. Also England as a cluster is nothing special. It has always been hyped by a few owners who owned around 15 building and they kept their prices higher but 1 cluster is exactly he same as the other except for the exterior of the buildings. If you getting a better deal anywhere else in International City which is at a substantially lower price then yes you should go ahead with it depending on your cash flow situation.

Dear Mr. Paul,
England is near the head of the DRAGON in DRAGON MART and away from the sewerage plant. Royal residences are in CBD which is also close to ENGLAND. The sewerage plan does not affect prices in International city. This is by far the lowest priced freehold in Dubai and that is the reason why it sells no matter what.

Dear Mr. Gupta, Sky courts was launched at a very good price in 3 phases. Id like to know what was the rate per sqft that you paid, based on which I can tell you if you should sell it or retain it. The completion date is expected to be July 2010 from what I’ve heard. You should however verify this with the developers.
Rental rates there should be approximately 65,000 to 85,000 pa depending upon the number of cheques you accept and the view from the apartment etc.

Dear Ravi,
AJMAN as a city should see a healthy grown in terms of capital appreciation. I don’t know Rockland as a developer personally and I prefer investments in Dubai where escrow accounts are in place.

Dear Mr. Mohyuddin,
The cube, when it was launched was sold by Choerie Real estate but today they are no where in the picture. If you are getting a good return on your investment, I suggest that you sell it.

Dear Mr. Gulati,
Lake District would fetch approx 5 to 10 % returns today so it is entirely your call... It is not likely to go up significantly in 6 months but we should keep monitoring.

Dear Mr Mishra,
You can probably sell JLT in October for around AED 1500-AED 1700/sq ft during Cityscape Dubai..
You have a good payment plan for Regent Business park and I suggest that you hold it but keep monitoring its progress.

Dear Rakesh,
What is the maximum downpayment that you can pay? Financing for no residents is extremely difficult but we can try.
The lowest priced property in Dubai would be a studio in international city which should cost approx AED 500,000.

Dear Imran,
I think you should hold Lake District until October 2008 until just before CITYSCAPE Dubai.

Dear Khalid,
I don’t know what price you paid when you bought International city so I cannot answer your question. There are several options available in Jumeirah Village south. In fact some new launches should take place within a month. Keep watching HABITAT for updates.

Dear Anuradha,
I would sell the apartment in Oct 2008 during Cityscape Dubai for maximum returns.

Dear SALAH,
Ready apartments in Marina cost approx AED 1900/sq ft onwards and under construction ones from AED 1400/sqft.

Dear John,
AED 960/sq ft is a good price for City Of Arabia. Anything in that vicinity is now selling at not less than AED 1200/sqft. My take is that we should keep monitoring where the market is going and off load this by Oct 2008 when CITYSCAPE opens in Dubai. Typically that is when the prices go higher.

Dear Mr. Ali,
Dubai Investment Park is an excellent location what with Dubai World Central and the new Dubai Airport coming up there soon.

My opinion is that you should retain the apartment until almost the completion date for maximum returns. Definitely a NO for renting/Leasing , what with the new Land Department regulations totally in favour of the tenants .

No effect on your property price just because the lease cost goes up. Not connected at all. That benefit goes entirely to the master developer.

Do not Know Schon Developers personally but all the properties that they have launched so far have been sold out, so looks good I guess.

Dear Mr. Sharif,
DEC is one of the biggest private developers in Dubai and has an exemplary track record in Mumbai as well.

The current market price in Culture Village is approx 1800/2000 per sqft.
Culture village as a location is one of the best in Dubai and I would hold on to this investment until at least Oct 2008 and see how it is doing. Let’s talk again in October or I suggest that we meet up in any of my offices at a mutually convenient time and discuss your investment options to help me help you better.

Dear Mr. Jain,
My take is that you should sell the T3 immediately as the rental returns are negligible. You can always re invest this amount generated from the sale into something else. There are several good options available.

Residence visa can be availed of with any residential property that you own in the UAE which offers such visas and there are hundreds of them.

Dear Mr. Bhatia,
My personal take is that Dubai is a better place to invest for short term investments rather than Ajman. Ajman is good for a 2 year return plan.
I do not know Savannah heights as a project personally. So be advised that Ajman still does not have escrow accounts so it’s your call entirely.

Dear Rohit,
I do not deal much in NON-FREEHOLD PROPERTIES so may not be able to help you much, but if you can scan and email me the kharta copy of this plot, I can offer it to my investors.

Dear Dr Gandhi,
Both the Binary and Iris Bay are good investments as the developers have an impeccable reputation.
To revert to your earlier email, I don’t personally like DAMAC as a developer because of the unlimited delays that they have had in the past 4 years.
As far as your 2 Million investment options are concerned, May I suggest that we meet up at a mutually convenient time and place and talk about it please?

Dear Ajay,
I sincerely think that the ENGLAND cluster is OVERPRICED for no reason at all. England does not offer any significant advantages to command higher prices. I have shops for sale that I would sell for AED 700 to AED 750/sq. Rentals in International City fetch from AED 70/sq ft to AED 125/sqft depending on the size of the shop.
My take on the shops is that they would appreciate much more once the entire International City complex is fully occupied and handed over. I would not sell the shop if I were you.

Dear Mr. Deshmukh,
AED 150,000 can be a good down payment for a property in Dubai, not the value o the property. The lowest priced apartment in Dubai would b a studio apartment which would cost approximately AED 500,000.

Dear Jude,
Most International City studios that i had have been sold out. The lowest priced units that I have now are in Morocco cluster, 479 sqft each at AED 450,000 each net to the owner. You will have to add 2 % transfer fees, 2 % brokerage and 1.5 % brokerage fees to this amount. The maintenance fees of AED 10.76/sqft also has to be paid in advance to Nakheel before transferring the property to your name.

Finance possible.

Dear Mr. Siddlingesh,
I would suggest that you enjoy the rental returns on your lakes unit for at least a year and then sell it by next September or so.
Marina apartments on Palm Jumeirah are a good buy and I foresee it to fetch approx 4500/sqft in 2 years.

Dear Mr. Chawdhry,
Dubai and Abu Dhabi are both good investment areas as both cities are short of houses and of offices as of now. Where to invest always depends upon the payment plan and expected return of investment.
Al Reef villas in Abu Dhabi are still a good buy. Yes.

Dear S.P. Kushari,
Please remember that I’m not a magician to be able to make your AED 300,000 into AED 1 Million. This constitutes more than 300 % returns on your investments.
I can however offer the best possible areas for you to invest your money.
I suggest that we meet up in any of my offices at a mutually convenient time and discuss your investment options to help me help you better.

Dear Mr. Hafiz Abdul Rahman,
1. You can transfer money to a bank account here in Dubai directly, or send money via western union or similar ways.
2. You can invest in any of the free hold areas designated in UAE. You will have to advise me your budget to help me to help you better.
3. Finance is possible for no residents but extremely difficult. If you manage to get finance it normally would not exceed 60 % of the value of the property.
4. Most developers offer UAE RESIDENCE VISA which is valid for as long as you own the property but needs to be renewed every 3 years. Its cost approx AED 7000 for the principle applicant and AED 5000 each for dependants.
5. No exemptions that I know of for GCC residents.
6. NO GUARANTEES PLEASE. It’s a property market like any other.
7. Terms of payment would depend upon the property that you buy. When you advise me more details as to what your budget is, I shall be able to advice.
8. I will need your passport copies and money only. Developers will then issue purchase and sale agreement that you would have to sign and send back.
9. You will not be needed to come to Dubai personally, I will be able to courier the documents to you easily.

Dear Mr. Akhtar,
In future I would humbly request you to please check with me BEFORE you buy and not AFTER just to feel reassured about your buy.
Silicon Gates is a fair investment. If you are able to sell it at AED 1000/sqft TODAY, do so now.
Also anything in AJMAN (after due diligence) that you get for less than AED 500/sqft is a good buy.

Dear Mr. Bhatia,
Ajman is getting commercially important because the His Highness the Sheikh of Ajman is very interested that the Emirates do well in terms of Investments. His son, His Highness Sheikh RAshad is the chief of Municipality in Ajman. So the electricity and water problems to be solved are just a matter of time and all things should be ok by the time the properties get built.
Most developers offer residence visas. These visas are valid to live anywhere in UAE and not just Ajman.

Dear Mr. Bagrial,
Frankfurt Tower isn’t a bad investment due to the fact that you have paid AED 800/sqft for a fully furnished unit. Yes delays do happen due to various reasons but I do not foresee any problems as developers eventually catch up and make up for lost time. Your amounts are going into an escrow account as you mention, so your money should be safe.
I can help you in selling this unit as long as I have EXCLUSIVE rights to sell this. Otherwise I would not be interested.
You are obligated to pay as per the developer’s payment plan.

Dear Mr.Khan,
When you say that you have approx 150k ready to invest, then this would have to constitute a minimum of 15 % towards your mortgage amount. Which, in your case means that your property value should not exceed AED 1 Million? There are several properties available at this price all over UAE but in Dubai, they would be restricted to International City, Jumeirah Village South, Sports City and IMPZ.

Dear Mr. Pharasi,
My suggestion to you Sir is to please invest either in Abu Dhabi or Dubai but with a 30/70 or 40/60 payment plan. Here you would not have to pay more than 40 % up to completion and you would be paying the major chunk on completion. By the time of completion your property price would have increased by not less than 25 to 60 %.

Down payments for "QUICK FLIP” units start at 5 % or less sometimes. This is where the AED 50K or AED 100 K investments can be made.

Dear Mr. Bapna,
1. International City studio is in Morocco in a lake facing building. 479 sqft with a balcony. Cost AED 450,000 nett to the owner. 2 % transfer fees and 2 % brokerage, 1.5 % land department fees and one year’s maintenance fees @ AED 10.76 per sq ft also applicable.
2. Amlak studios sold out
3. Springs in Silicon oasis - different sizes, different floors and different owners.

Dear Mr. Jain,
First gulf bank is a solid company and I would hold the property until completion if I were you. However, if you are getting more than 50 % returns on your investments today, please sell it.

Dear Rukshana,
Season’s community is a more than a fair buy. If you are getting more than 50 % returns on your investments today, please sell it. I would be happy to do this for you if you email me all your papers or bring them and meet me.