In our latest roundup of property news, exciting things are happening in Dubai — industry watchdog, RICS, pushes to adopt international real estate standards, Emaar shareholders reap the benefits of billions of dirhams in investments, and a new development breaks ground in Dragon City. Find out more below.
Emaar Shareholders Score AED1 Billion Cash Pay-out
UAE property developer Emaar will be distributing a mammoth pay-out to its shareholders, as investors continue to pour billions of dirhams into Dubai’s real estate sector, reports local national media.
The master developer of Burj Khalifa announced recently that it will be handing out AED1.04 billion as a special cash dividend to investors, marking a year of its listing on the Dubai Financial Market (DFM).
The bumper pay-out is the first to be approved by the developer since its public listing in 2017.
Industry sources said that there has been an increase in the uptake of off-plan properties in Dubai, as local and international buyers continue to snap up homes under construction in the emirate.
During the first six months of the year, investors acquired properties worth a total of AED111 billion across the city, according to the Dubai Land Department (DLD).
The three biggest buyers of the year so far are UAE nationals, Indians and Saudis, whose investments accounted for AED6.8 billion, AED5.9 billion and AED3.7 billion, respectively.
From January to June this year, Emaar managed to stash a net profit of AED1.82 billion and a revenue of AED6.99 billion.
During the same period, the developer offered up 3,600 residential units for sale and scooped up a total of AED6.23 billion from buyers.
Its current total sales backlog stands at more than AED38.5 billion, a huge portion of which will be “recognised as revenue over the next three to four years.”
According to JLL’s latest report, the Dubai market has witnessed a major increase in off-plan residential sales over the past two years. Citing data from DLD, the property expert said the value of off-plan sales has gone up by 17 percent, from AED12 billion in the first half of 2016 to AED14 billion in the first half of 2018.
Industry Watchdog RICS Urges New Sector Standards
The Royal Institution of Chartered Surveyors (RICS), a global association of property professionals that works to raise ethical and practical standards in real estate, is discussing with the UAE about adopting international guidelines on how property is measured and valued to achieve consistency, as well as a mediation platform to resolve construction disputes, according to The National newspaper.
The proposals are intended to give greater confidence to investors looking to acquire property in the UAE at a time when the national government is also taking steps to increase transparency. The Dubai Land Department (DLD) is currently creating a blockchain-based digital platform to record property sales and rentals by 2020 and make it easier for overseas investors to conduct transactions.
Having consistency around the world is really important in bringing professional standards to the marketplace and encouraging investment,” said RICS CEO Sean Tompkins. “There has historically been a massive lack of clarity on how properties are measured, which impacts valuations.
The UAE has yet to adopt many of RICS industry guidelines, and the organisation wants to increase its profile in the country, where it regulates 1,500 surveyors chartered by the institution. It held talks earlier this year with Dubai’s DIFC Courts to launch a conflict resolution service in the UAE, Tompkins said.
“[The proposal] is currently under review,” a DIFC Courts spokesman told The National. He did not say when a decision would be made.
Nakheel Breaks Ground On Dragon Towers
Dubai master developer Nakheel has broken ground on Dragon Towers, its AED713 million twin-building residential project at the rapidly expanding Dragon City mixed-use community. It is due for completion in 2021.
Dragon Towers, which went on sale last month with property prices from AED449,000, is connected by a covered bridge to the famous Dragon Mart and its 5,000 shops, restaurants and attractions.
DISCOVER DRAGON TOWERS:
The project comprises two 37-storey buildings each with 571 one and two-bedroom apartments. There are also two floors of retail space, four parking levels and a sixth-floor podium level Clubhouse with a 25-metre swimming pool, children’s pool, restaurant, gym and tennis court.
Located on the Al Awir Road, the apartments are easily accessible via a new interchange, with good connectivity to Sheikh Mohammed bin Zayed Road and just a few minutes drive from Dubai International Airport. The upcoming Dubai Metro Green Line extension and new Metro stations nearby will provide convenient access to the rest of the city.
Dragon Towers is a key component of Nakheel’s ongoing retail, hospitality and residential expansion at Dragon City, which currently comprises sister malls Dragon Mart 1 and 2 and an ibis Styles hotel. A new showroom and car park complex and a Premier Inn hotel are in advanced stages of construction, with further expansions in the pipeline.
This article was originally published in Prestige Magazine, Issue 37.