The West End Tower in Dubai Thursday, Jan 17 2008

Dubai has some of the most famous and innovative state of the art buildings in the world. In addition to being great residential options, these real estate marvels also attract tourists from all over the world. Properties in Dubai in the like of the Burj Dubai, The World and The Palm are not unknown to the entire world. The latest in the line is the upcoming West End Tower in central Dubai. Close to the new airport, Dubai Sports City, Universal Studios, International Media Production Zone and Dubai Marina, the West End Tower is the next hot destination for residents, business travellers and tourists alike.

West End Tower in Dubai has five-star residential as well as commercial spaces. It offers freehold ownership wherein businessmen as well as holiday goers can contemplate making profitable investments. Compliance with the recently formulated Escrow Law 8 makes it a safe and transparent investment opportunity.

Star attractions in the vicinity of West End Tower:

• Palm Jumeirah
• Mall of Emirates
• Dubai International Airport
• Dubai Land
• Jebel Ali Free Zone

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UAE Spaceport Tuesday, Jan 15 2008

Local tourism was not attractive enough that UAE’s other lesser known state of Ras Al Khaimah is now the venue for the 30 billion USD Spaceport. Space Adventures is developing commercial spaceports in this region.  They are the pioneers of space tourism. The expansion will become global after a few years. The funding will be open to many of the venture capitalists. The revenues will be divided between the government of Ras Al Khamiah, Space Adventures and the funding agencies. The government has given clearance to this massive project. Space Adventures can operate suborbital spaceflights from their airspace. Prodea is their partner in this venture.

Why was Ras Al Khamiah chosen for this space trip odyssey? The main reasons are that the rulers agreed to become sponsors to the project and the place supports airport and spaceport facilities. The place is close to Dubai, a major tourist attraction in the region. The spaceflights cannot become congested in this region and they can have smooth operations. Space travel can become an important avenue for revenue in the near future. Myasishchev Design Bureau, a leading Russian aerospace organization is the main designer of the suborbital space transportation system. They have already designed high powered performance aircraft and space systems. Nearly five people can be put together in a spacecraft called ‘Explorer’ once operations commence. The highest degree of safety is being ensured on the space vehicle.

Explorer will have a flight-operational carrier aircraft - the M-55X - and a rocket spacecraft. It will have safety features like multi-redundant safety systems. The development schedule is being kept a secret by the Russian company. The civil aviation ministry has approved the project. The engineers working on the spacecraft have sorted out all the technical details with relevant federal authorities to support the operation of commercial suborbital spaceflight in UAE air space. The rulers consider this mega-project as a landmark in progress in the country. They are expecting tourists from the globe to come here and experience the spaceflight.

The project is based in Ras Al Khamiah which is in the northern part of UAE, with Oman on its border. It has one of the largest pharmaceutical firms, along with hectic real estate development in the region. Like Dubai, it is improvising on the infrastructure to attract tourists. It is also attracting commercial and industrial enterprises like Dubai. It has a free trade zone and a massive airport is coming up too. Space tourism is still in a nascent stage in other areas of the world. But with financial support, expertise and infrastructure facilities not a problem in UAE, it will become very popular soon. The rulers are leaving no stone unturned to make sure the development programs hit any snags till 2010, when they will become ready for tourists.  It has luxury hotels, villas and homes for visitors to stay. It is fully equipped to take on the load during vacations.

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RERA Issues First List of Licensed Property Developers Wednesday, Jan 2 2008

The Real Estate Regulatory Agency (RERA) has issued its first list of property developers that have registered with the agency. As per Escrow Law 8 formulated last year, property developers in the emirate of Dubai need to get themselves legalized with Dubai Land Department’s Real Estate Regulatory Agency in order to be able to carry out their operations. Over 400 companies have been licensed so far.

RERA has cautioned investors in Dubai property against dealing with real estate developers who do not have a valid license from the agency. The unregistered companies will face problems in the advertising and selling of their projects.

For more information on Escrow Law 8, please refer to the following links:

All You Need to Know about Dubai’s New Escrow Law

The Latest Buzz in Dubai Real Estate: Escrow Law 8

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Rising rents to the pain of Dubai and Sharjah residents Tuesday, Dec 4 2007

Even after a choice of commercial and residential units in the real estate market, the year 2007 witnessed a hike in property rents in the emirates of Dubai and Sharjah. So much so that it is weighing quite heavily on tenants in the light of inflation rates of essential commodities as well. Real estate analysts believe there will be little respite, if any, in the rising rentals in the coming year.

If one looks at the wider market scenario, there has been practically no cooling down in the number of people drawing to the UAE for jobs. Therefore, the real estate market has not witnessed a downfall in demand in spite of rising rental rates. Even an emirate like Sharjah is at par with Dubai today when it comes to rental costs.

Some Statistical Facts

In Sharjah, a 2-bedroom flat in a newly-built building that has a variety of health and recreational facilities costs about 70,000 AED to 75,000 AED. On the other hand, a similar flat without the afore-mentioned facilities is available for something like 50,000 AED. Likewise, a 1-bedroom flat in a building with state of the art facilities costs anything between 45,000 AED to 50,000 AED.

In Dubai, a studio apartment in a prime location is available for 55,000 AED to 60,000 AED, whereas 1-bedroom and 2-bedroom flats in the same area can cost up to 68,000 AED to 80,000 AED. On the other hand, a beautiful villa in Dubai can be rented out for about 100,000 AED or even more! Still there are places left in Dubai where the rates are even higher.

Heartbreaks

Increasingly it is the expatriate portion of the population that has to bear the brunt of rising rents. Even after living in the UAE for decades, they cannot hope to live in a desired place. The main reason remains the same as ever – While rentals increase, salaries remain roughly the same over the years.

Singles’ Plight

Finding a good room at an affordable rent, even if it is a shared accommodation, is quite an ordeal for singles. In spite of a rent cap in most emirates, there is continued practice of flouting the norms by landlords.

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Emirates Update would love to receive your views on rising rentals in the emirates. Please post your comments below.

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The Latest Buzz in Dubai Real Estate: Escrow Law 8 Thursday, Nov 29 2007

The recently formulated Escrow Law 8 is the latest buzz in the real estate market of Dubai. According to the law, all funds received by the real estate developers in Dubai will be regulated through escrow accounts supervised by the Dubai Land Department. All property developers in Dubai who sell units off-plan with payments from buyers before the concerned property gets completed comply with the Escrow Law.

Dubai Land Department has released a list of approved banks that will act as account trustees for escrow accounts under the new law. At present, HSBC tops the list followed by Tamweel, Dubai Islamic Bank, Emirates Bank, National Bank of Dubai, Amlak Finance PJSC, Commercial Bank of Dubai and Abu Dhabi Commercial Bank.

Dubai real estate is a booming market for investors from a whole cross-section of investors from all over the globe. The Dubai Land Department also came up with Real Estate Regulatory Authority to manage real estate activities in the emirate.

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UAE Real Estate Speculations Saturday, Nov 24 2007

The real estate of the United Arab Emirates has been growing rapidly over the years. With an ever-increasing supply, the UAE real estate sector is quite speculative. Amid the emirates, real estate in Dubai and Abu Dhabi offers buzzing market because these emirates are emerging as cosmopolitan mega cities today.

There are speculations by real estate experts on the introduction of things like home price index. A rise in real estate prices cannot be contained once it sets rolling since a lot depends on the value of the dollar. With the coming up of the new escrow law in Dubai by the recently founded Real Estate Regulatory Authority (RERA), UAE is indeed on the road to attracting more international investors.

The UAE property market is all set for expansion with 2.5 million property units coming up in the next decade in Abu Dhabi alone. UAE government’s constant endeavours to regulate and streamline the real estate sector are a phenomenal factor in this regard.

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UAE construction sector wages to be reviewed Monday, Nov 5 2007

The UAE government has announced a review of workers’ wages in the construction sector, following a series of strikes recently. The Cabinet has ordered a study on the salaries of construction workers. In the next few days, the Labour Ministry of the emirates will be contacting concerned companies in this regard.

The Labour Ministry requires that employers pay salaries without any deduction for any reason whatsoever. The decision of the government to look into the salaries of construction workers comes as a response to strikes by workers against poor living conditions and meagre wages.

At the same time, the government has made it clear that it will not tolerate any violent turn in workers’ protests. Last week acts of vandalism were reported from a few incidents across the emirates.

It is estimated that over 700,000 Asians are construction workers in the UAE. The country already affluent due to its rich oil reserves has been experiencing an economic boom from its real estate sector in recent years. Naturally, construction workers’ unrest has grave consequences for the UAE economy.

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The Dark Underbelly of Property Boom in UAE Saturday, Nov 3 2007

The boom in the property market of Dubai over recent years has cropped up a number of socio-economic issues. The darker side of swanky buildings and high-rise apartments is the ever-widening gulf between the rich and the poor in the emirate. Recent strikes by immigrant workers in the emirates are just one of the many offshoots of the immiscible social inequity.

Majority of construction workers and labourers in the UAE earn a meagre sum of 600-1000 AED per month, which is not even enough to make both ends meet in the region. In stark contrast is the average monthly salary in the emirates that amounts to 10,000 AED. One can very well imagine the anxiety and frustration of thousands of labourers who cannot send money home because they don’t have anything to spare.

Moreover, immigrant workers in the emirates are forced to live in shanty suburbs at the fringes of luxury homes, state of the art artificial islands and avant-garde buildings.

Measures that must be taken immediately:

• Stringent action against employers who impound workers’ passports in order to prevent them from seeking employment elsewhere.
• Stringent action against employers who cheat employees of a part of the pay.
• Ban on working under the scorching summer sun of the Gulf.

The consequences of workers’ discontent can be grave for the development of the emirates. Majority of workforce in the UAE is constituted of expatriates often from developing countries. These poor souls, usually under debts, come to the Gulf with hopes of improving living conditions back home.

With poor living and working conditions on foreign shores and not a penny to spare, no wonder the famed property boom of the region might halt due to shortage of labour.

High time all concerned looked at it from a humanitarian perspective as well.

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Italian furniture in vogue in UAE homes Wednesday, Oct 31 2007

Italian designs are renowned for their elegant creations all over the world. UAE is fast emerging as a destination to own world class homes and Italian furniture is stealing the show in a big way. Interior designers working in hotspots such as the real estate sector in Dubai, Abu Dhabi and now Ras Al Khaimah are increasingly going for Italian furniture, fittings and accessories.

Italian companies have been marketing their products in the UAE for over a decade now. The ongoing property boom in the emirates has increased the importance of Italian products. Italian furniture and fittings offer beauty, elegance and comfort all rolled into one package. They lend an innovative tinge to the fast-emerging luxury real estate in the emirates.

Some renowned Italian brands in UAE

· Selva – Based in Italy and having branches in UAE, USA and Russia, Selva specializes in turnkey projects and custom solutions. Selva’s handmade furniture is renowned all over the world. Moreover, their interior designer offers free design layouts.

· B&B Italia – B&B Italia is known for its modern style furnishings since 1966. Always up in capturing the nerve of the market, B&B offer contemporary finishes and innovative designs.

· Boffi – Pioneers in designing state of the art kitchen furniture, Boffi is a name UAE interior designers trust for its impeccable quality.

· Al Otaiba Ferretti – Custom-designed kitchens are the forte of Al Otaiba Ferretti. Al Otaiba Ferretti has been supplying kitchens, vanities and wardrobes to a number of commercial and residential projects in Abu Dhabi and Dubai.

From the times of Leonardo da Vinci, Botticelli and Michelangelo, Italians are known for their art and creativity. No wonder Italian creations are making a mark in international markets today. The increased usage of things Italian in UAE homes is a good indicator of the emergence of the country in comfort and luxury on the global arena.

Biblio: Interior Decoration Ideas for your Dubai home

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Bait Al Khair Society Children Heave a Sigh of Relief Friday, Oct 26 2007

Bait Al Khair Society – a charitable organization in the UAE - have recently received donations worth 6 million AED from one of the largest real estate developers in the world Nakheel Properties. Bait Al Khair Society works for the welfare of the disadvantaged nationals of the United Arab Emirates. The generous gesture closely follows and is part of the ‘Ramadan Kareem Make a Wish’ charity initiative from the real estate developers.

Nakheel’s Ramadan charity campaign drew in 400,000 AED worth of donations from around the world. The company have pitched in more to make a total contribution of 6 million AED to Bait Al Khair Society as pledged during Ramadan. The occasion saw a boat trip to the Palm Jumeirah for 70 children from the Society courtesy Nakheel.

A word about Bait Al Khair Society

Established in 1989, Bait Al Khair Society raises funds and organizes programs for uplifting the disadvantaged sections of UAE society. Widows, divorcees, low-income nationals, patients, disabled nationals, families of prisoners, nationals with special needs, orphans and students from poor families come into the ambit of the organization. In order to carry out its charitable initiatives, Bait Al Khair Society works in collaboration with public welfare institutions in the Emirates.

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