Pakistan Property & Real Estate News

Development projects to continue

ISLAMABAD: Capital Development Authority (CDA) is thrashing out a well though out strategy to tackle problem of financial resources’ shortage and in a month’s time, there is likelihood of the emergence of a plan to counter this problem, a well-placed source in the authority told this news agency

“Emphasis”, he said,” would be laid on finding alternate methods of generating income besides selling plots, which is the conventional method of making money.”

He said CDA would continue its projects aimed at public welfare despite the financial crunch confronting the authority presently.

He said shrinking resources did not deter the authority’s highups and it was policy of CDA Chairman Imtiaz Inayat Elahi to continue delivering to the masses by continuing the ongoing developmental projects in the federal capital.

Besides this, he said new developmental projects are also in store and they would be executed with as much zeal and dedication as those, which were currently being carried out.

He dispelled the impression that financial crisis had rendered CDA weak and fragile. He said the Authority had very much the capacity to pay to the contractors engaged in work on different projects.

“It is one of the priorities of the CDA chairman to develop G and I series sectors of Islamabad, which hitherto have been ignored as there has been too much focus on beautifying E and F sectors, which are relatively posh and inhabited by rich class,” he added.

DHA Cogen power, desalination plant recommissioned

Karachi: The Cogen Power and Desalination Plant of the Defence Housing Authority (DHA) was recommissioned at the Defence Authority Country and Golf Club on Thursday.

Nasim Khan, Defence Cogen Ltd (DCL) Managing Director (MD) and representative of Ashmore Energy International (AEI), informed the gathering that the damaged Cogen plant had been repaired and was producing water and electricity since August 21.

He said that the plant was in the testing and pre-commissioning mode, and that all tests, including vibration tests, were returning technically sound results. He said that the Cogen plant would start commercial functioning by the end of August.

Chief Guest Commander V Corps Lt-Gen Shahid Iqbal said that stakeholders concerned rose to the occasion, and resolved all technical, financial and administrative impediments in a professional and competent manner. He said that Phase-II of the project consists of a similar power and desalination plant, with a production capacity of 105 megawatts (MWs) of power and five million gallons (MGD) of water. Urging the DCL to ensure that Phase-II of the Cogen project takes off promptly and successfully, he said that the second phase was essential to meet the growing water and energy needs of the city. DHA Administrator Brig. Khalid Tirmizi described the recommissioning of the Cogen Plant as a “momentous event” and a “massive breakthrough” towards addressing the depleting energy needs and water scarcity problems of the metropolis. He thanked all stakeholders of Cogen project for their support; the KESC for providing the energy needed for energising the plant, the SSGC for restoring gas supply, Siemens for their cooperation in recommissioning the plant and the banks for providing the much-needed financial support to DCL.

He also thanked residents and residents` associations for their support, understanding and cooperation. Tirmizi also lauded the Role of the media for provided adequate coverage and highlighting the issue in a positive manner.

A large number of people, including the DCL MD, representatives of AEI, officials of KESC, SSGC, various banks, representatives of stakeholders from Turkey, Brazil and representatives of various residents associations attended the event.

Construction of illegal buildings, SC orders arrest of plaza builder

LAHORE: Hearing a case of high-rise buildings in the city on Wednesday, the Supreme Court of Pakistan had the owner of Salaar Plaza arrested for not depositing fine, observing that the court would not allow lawlessness in the country.

The plaza owner, Rana Naeem, was fined Rs 50 million for illegal construction but he gave a cheque which was dishonoured by the bank concerned.

The court issued him the contempt notice and directed to deposit the amount to avoid being arrested.

He appeared before the court but failed to deposit the amount, even after the court granted him one more hour to do.

The court, therefore, had him arrested, observing that his building was constructed illegally and the illegal constructions were to be demolished.

Old Anarkali police arrested Rana Naeem and took him to the police station.

We are the custodian of the rights of people of Pakistan and can not allow the culture of lawlessness to flourish in the society,î observed Justice Khalil-ur-Rehman, who was heading the full bench.

The bench adjourned the further proceedings till the first week of October.

The court during the last date of hearing had ordered the Punjab government and the Lahore Development Authority to submit building-wise report and recommendation about further line of action against 1,500 to 2,000 buildings built in violation of rules and regulations, besides pinpointing out those buildings whose illegalities could be condoned and those which could not be condoned. A commission appointed by the court submitted reports about these buildings.

Residential property prices in Malta continuing to fall

Property prices in Malta are continuing to fall with both apartments and houses seeing lower asking prices, according to the Central Bank's property price index.

Figures published in the bank's Quarterly Review shows that the Mediterranean island's year long real estate slowdown accelerated in the first three months of this year. The index dropped 9.9% on a year earlier with almost half of this fall, some 4.4%, occurring in the first quarter. At the end of March it was around 11% below the peak level s reached in the middle of 2007.

The bank said lower asking prices were observed in seven of the eight property categories surveyed by its property price index which is based on advertised residential property prices in newspapers sampled each month.

Apartments in shell form and houses of character saw the steepest decline with prices plummeting by 20.4% and 16.2% respectively.

Finished flats, the most popular property for sale in Malta saw prices fall 10.8% while townhouse dropped 11.8%, maisonettes in shell form were down 5% and maisonettes in finished form fell 4.4%.

The one category that saw an improvement was terraced houses where prices increased by 4.1%.

The index also shows that there was a reduction in the number of properties advertised overall. The number was down by 21.1% on a year earlier with the drop being distributed across all the categories of residential property surveyed.

Permits granted by the Malta Environment and Planning Authority were fewer during the survey period, providing further evidence of the slowdown in the property market.

The first quarter figures are broadly in line with the findings of a recent Chamber of Commerce, Enterprise and Industry survey for the same period, conducted among members. It found that property prices were down by 15 to 20% from the first quarter of last year.

Islamabad: CDA seeks ideas for beautification, says chairman

Islamabad: The Capital Development Authority (CDA) would involve youth force, likewise the developed countries to seek fresh ideas in the execution of development projects, CDA Chairman Imtiaz Inayat Elahi said Tuesday.

Addressing a prize distribution ceremony for winners of the competition of making imaginary themes to beautify newly constructed projects, the CDA chief said the freshness and brilliancy of the ideas can be maintained by involving new generation in such healthy activities as they would feel proud to be part of the national development.

“The Capital Development Authority has taken some practical steps in this direction. CDA has worked on plans to beautify some of its newly constructed projects by inviting the young future architects for a competition to contribute their imaginary themes,” CDA chairman said. He viewed that practice will not only provide a face lifting of the projects, but also serve as a permanent feature of these landmarks.

The civic body has shown confidence in the new generation and has organized a competition among the young architects of Comsats Institute for making images to add aesthetic value to underpass and flyover at the intersection of Faisal Avenue and Jinnah Avenue. A jury comprising CDA Board members, Comsats officials and panel of renowned architects, selected the feasible mural for the purpose after having detailed scrutiny of various proposals.

RDA approves road network for new airport

Rawalpindi Development Authority (RDA) Tuesday approved the road network for the new Benazir Bhutto International Airport (BBIA).

The officials in the RDA told ‘The News’ that task has been assigned to the National Highway Authority (NHA) for providing a safe, efficient, time saving and congestion-free access to the new airport.

NHA chairman briefed the participants on the routes and the topographic constraints of the land. The viability of straightening the access route between the Zero Point Interchange and the VVIP entrance point of BBIA was also discussed. It was concluded in the meeting that the most suitable route catering for the VVIP, normal traffic and cargo traffic be recommended and deviations in the newly proposed route with reference to the Rawalpindi Master Plan, if any, may be got condoned and modified accordingly after seeking approval from the RDA.

The NHA had submitted recommendations of design consultants on the road network in July, this year. According to the NHA recommendations, the road length has been reduced by over 650 meters, the construction cost reduced considerably, number of crossings over natural drainage channels reduced, travel time has been reduced as compared to other routes and it eliminates the sharp turn near the VVIP entrance and provides straight access route to BBIA from the Motorway.

Top economist bullish about Chinese real estate recovery

The rebound in the Chinese property market is sustainable and could see real estate investment increase by 30% in 2010, it is claimed.

According to Fan Gang, an economist who advises the central bank, it is the real estate recovery that will become a driving force in a V-shaped economic recovery.

'China's property industry cannot only create great wealth but also form an important basis for sustainable economic growth,' he told a forum in south China.

He also said that the Chinese government should not rush to withdraw its fiscal stimulus policies that are credited with helping the real estate revival.

However, some other economists doubt that the property revival can be sustained. They see price bubbles forming in some markets, inflated by a lending frenzy in the first half of the year.

But Jinsong Du, analyst with Credit Suisse said property prices will most likely continue to rise in coming months, mainly because of tight supply but the growth will slow when new units are released.

'We believe new supply will begin to increase again in September, which means the magnitude of the price increase will likely slow in the fourth quarter,' he explained.

Some cautious home buyers have retreated to the sidelines amid concerns the government may tighten credit in the real-estate market and slow price growth in some cities, he added.

And analysts at Nomura said that increases in supply of land through government auctions will moderate property price growth in coming months. 'We think the government wouldn't want to run the risk of over-tightening, which could derail the economic growth momentum,' Nomura said.

Certainly developers are building more. The latest figures show that China's biggest listed property developer, Vanke, has increases its housing starts target for this year by 45% and rival Poly Real Estate said sales in the first half of this year rose 143% from a year earlier.

On the ground, developers and construction firms, big and small, are trying to meet the new demand, and say that last years' downturn is now a distant memory.

The economic importance of the property sector in China is hard to overstate. Investment in residential property accounted for about 10% of gross domestic product before the global economic downturn, roughly the same as the country's vaunted export factories.

Financial woes of major Irish developer could flood the market with cheap properties

The beleaguered Irish property market could be flooded with cheap apartments and half built office blocks after the country's Supreme Court ruled that companies belonging to Dublin's biggest real estate developer, Liam Carroll, should be placed in liquidation.

Carroll is reputed to have built more apartments in Dublin than any other developer and is also a major investor in the Irish stock market. If his business goes under it would be one of the biggest corporate failures in Irish history.

The court has appointed a provisional liquidator to two companies owned by Carroll after ACC Bank applied for the move as it is owed €130 million by the firms. An appeal by six of Carroll's companies for bankruptcy protection has been dismissed. His Zoe Group owes more than €1 billion to seven banks.

It is a massive headache for banks owned money by the business. These include Bank of Scotland and Ulster Bank, the subsidiary of the Royal Bank of Scotland that is 70% owned by UK taxpayers and it also has implications for the National Asset Management Agency, the Irish government's bad bank which is due to start buying up bad property loans from financial institutions.

The NAMA is intended to unwind the crashed property market in an orderly way and allow the banks to start lending again but a large number of properties coming onto the market as the result of the Carroll financial difficulties could cause it a major headache.

There are major concerns that the Irish property market, where prices have already fallen by 75% in some places, could suffer even more damage.

A key to avoiding large number of cheap property coming onto the market will be the value put on Carroll's property assets and how much of a discount the government will demand when it buys the loans.

It has indicated it will look at the perceived long term value of the property assets rather than pay the current depressed market values.

However, if a sale of Carroll's assets reveals true market values the government is likely to face criticism that it is overpaying.

Jamshed town launches uplift project

Karachi: The Jamshed Town Administration has launched the Shuhada-e-Haq Developmental Package in Union Councils (UC) 8 and 9, Lines Area. City Nazim Syed Mustafa Kamal along with Nazim Jamshed Town, Javed Ahmed, inaugurated the mega project which includes 24 development projects and carries a whopping budget of Rs160 million.

In the launching ceremony, residents of the area greeted the City Nazim and Town Nazim. Addressing the crowd, the City Nazim talked about the upcoming projects in the area and praised the Town Nazim and his team for launching the biggest development project in the city’s history. At the event, he also inaugurated the opening of the Khursheed Begum Memorial Women Computer Centre, Shahzadi Afza Altaf Family Park and the Hindu Community Centre.

At the occasion, the Town Nazim said that the development project is a gift to the residents of Lines Area. He promised that all projects will be completed in six months, including the construction of roads, repairing water and sewerage lines, and the construction of a laboratory and library.

Property shortage in New Zealand set to kick off real estate price boom

A shortage of residential property in New Zealand's largest city could result in a real estate boom with prices rising 30% in the next three years, it is claimed.

A study by forecaster Infometrics predicts an annual price growth of 9.8% next year followed by annual increases of 9.2% until 2012 in Auckland because of a severe shortage of supply.

Researchers point out that the country's largest city is facing a rising population and a limited supply of new housing. 'Auckland house price growth is forecast to be the fastest in the country at 9.2% per annum,' it said in its report.

Although currently the city is experiencing a yo-yo effect in terms of prices. For example, prices in Manukau are up almost 5% those on Rodney's are down 13% on a year ago.

But the researchers are convinced it will pick up. 'The persistently low level of residential construction activity in Auckland over the past few years has led to a shortage of property in the region,' the report adds.

'These under supply issues are set to provide good support for property prices over the next 12 months and by 2011/12 housing supply issues are likely to be dominating price trends in the region,' it continues.

The report is also bullish about property prices in general and says that nationally they could rise by up to 24% over the next three years as cheap mortgages and lack of new housing continues.

Figures from Statistics NZ back up the claim that fewer new properties are being built. New housing consents plummeted from 30,000 a year to just 13,000 last year.

And estate agents are reporting an increase in activity and that the time it takes to sell a property has reduced from 58 days in July 2008 to 41 days in June 2009.

'The market is some areas is very hot at the moment,' said Steven Glucina of LJ Hooker estate agency which is selling properties in the popular Ponsonby area well over valuation price.

Property transactions stabilising in Dubai

Residential asking prices for property in Dubai have plummeted 49% since the third quarter of last year with rents falling 35% in the same period, according to the latest published real estate report.

The figures from international property advisors Jones Lang LaSalle are the latest in a long line of price reports that show that the emirate is still suffering considerably from the effect of the global economic crisis and there are not yet any signs of recovery in the real estate market.

But the report does show that the rate of decline is slowing, giving hope that a recovery could be underway by the beginning of 2010. Overall values fell 24% in the second quarter of this year but the gap between asking and achieved price is narrowing, indicating that vendors are becoming more realistic in terms of the price they are asking, and buyers are prepared to invest.

Rents also fell less sharply in the second quarter, the report added. The average rent for a two bedroom apartment fell by 15 in the second quarter, compared to 22 in the first three months of the year.

Also the level of transactions has stabilised with volumes between the first and second quarters of this year levelling off compared with a 58% fall between the second quarter of 2008 and the same period in 2009.

Some 22,400 residential units are expected to be handed over in 2009, in spite of over $24 billion worth of residential projects being put on hold or cancelled, the report also points out.

'The stabilisation of transactional volumes is an important indicator, which reflects improved confidence among investors. The narrowing gap between asking prices and achieved prices is a further indication that the market is beginning to stabilise, albeit at significantly lower levels of pricing than those seen earlier in the year,' said Craig Plumb, head of research at Jones Lang LaSalle MENA.

'While there have been a large number of projects delayed or cancelled, there remains a significant level of new supply, with around 22,400 residential units expected to be completed across Dubai in 2009,' he added.

Major Gulf developer admits a fifth of investors on flagship project are behind with payments

Around 20% of property investors with Abu Dhabi based Hydra Properties are struggling to meet payments on its flagship development, the company has admitted.

The property company has been dogged by complaints from investors that its $545 million Hydra Village project is well behind schedule and prices increases have been imposed without consultation.

They are also furious that those who were struggling to meet payments were sent letters threatening them with legal action.

It has responded by offering to re-schedule payments for some investors but has until now denied that there was a serious problems with defaulters.

But now it has confirmed a large number are having difficulties making payments. A fifth of unit sales money on Hydra Properties' projects is overdue from struggling investors, deputy commercial director Matar Al Shamisi said.

Other developers have also admitted that investors are struggling. Two months ago Dubai Pearl admitted up to 30% of investors on the $4.1 billion project had rescheduled payments because of fears of defaulting.

Hydra is now reassessing some of its projects in light of the global economic crisis. Company bosses have decided that if a project is only 10% sold they are unlikely to continue with it. But it has not yet said which projects might be ditched.

Investors say their confidence has dwindled in recent months. 'Hydra Village was originally supposed to be finished this year but there are only a few show villas completed. I would personally rather have a refund,' said one investor.

Others are happy to have their investment payments re-scheduled. Graeme Perry, deputy chairman of an action group Hydra Investors Committee said that a lot of people are holding back because of changes to their contracts.

He explained that Hydra agreed to make some changes such as allowing investors to delay future payments until their apartment or villa is delivered and making late payment clauses less strict. But they are not yet happy with the wording of the new contracts. 'Nobody is ready to give more money until there is more assurance,' he added.

Model ‘forest park’ to be developed near Rawal Lake

Islamabad: The first-ever model forestry park, spread over an area of 350 acres, will be developed near Rawal Lake.

Sources in the Capital Development Authority (CDA) told ‘The News’ that the park will be developed in five years at a cost of Rs239 million. The park will be divided into blocks of 4 to 10 acres. These blocks will be given to government and private sector institutions in addition to academic institutions for afforestation. Plantation will be carried out by institutions and departments. Boards will be displayed in every block, mentioning the name of the institution or department, whatever the case may be. These boards will also mention the total number of saplings planted, their species and other details, sources said.

Sources said that the sponsoring agency of the project would be Planning and Development Division. The CDA Environment Directorate will implement the project under the supervision and guidance of Planning and Development Division.

The forestry park is being developed to protect the local flora and fauna. It will also have the gene pool facility for posterity besides recreational and educational facilities. It will help create awareness among people about the importance of preserving natural environment, sources said.

The major activities in the first phase of the project will include contour (half metre) mapping, survey, land development, ridging, bush clearance, purchase of plants, digging of pits, plantation of indigenous species at 10’X10’ spacing, fencing of poles and gates, construction of water courses along with four water tanks, installation of two turbine tubewells and setting up of rain harvesting mechanism.

The park will be equipped with all facilities, including horse and jeep tracks, enclosures of local birds and animals, camping sites, picnic spots, shelters, huts and jeep safari. A specific area will be allocated for the nursery of indigenous plants.

CDA Director Environment Malik Auliya Khan told ‘The News’ that the construction work on the forestry park would hopefully be started in a couple of days and it would be completed in five years with financial support of the Planning and Development Division.

He said the main purpose of the project is to sustain wildlife and maintain environmental settings of the area. According to him, indigenous saplings and different species of animals would be introduced in the park. The park would also have camping facility especially for students.

“Jogging tracks would be developed besides various other recreational facilities but all development work would be completed without causing any kind of damage to the natural environment of the area,” he said.

Malik Auliya Khan said that the Planning Commission has approved the project after thorough consideration and it would continue to provide every kind of assistance to the CDA for its timely completion.

An annual plantation competition would be a regular feature. All institutions and departments having blocks in the park would participate in it. “Participants would be bound to plant only indigenous species of plants.

Model ‘forest park’ to be developed near Rawal Lake

Islamabad: The first-ever model forestry park, spread over an area of 350 acres, will be developed near Rawal Lake.

Sources in the Capital Development Authority (CDA) told ‘The News’ that the park will be developed in five years at a cost of Rs239 million. The park will be divided into blocks of 4 to 10 acres. These blocks will be given to government and private sector institutions in addition to academic institutions for afforestation. Plantation will be carried out by institutions and departments. Boards will be displayed in every block, mentioning the name of the institution or department, whatever the case may be. These boards will also mention the total number of saplings planted, their species and other details, sources said.

Sources said that the sponsoring agency of the project would be Planning and Development Division. The CDA Environment Directorate will implement the project under the supervision and guidance of Planning and Development Division.

The forestry park is being developed to protect the local flora and fauna. It will also have the gene pool facility for posterity besides recreational and educational facilities. It will help create awareness among people about the importance of preserving natural environment, sources said.

The major activities in the first phase of the project will include contour (half metre) mapping, survey, land development, ridging, bush clearance, purchase of plants, digging of pits, plantation of indigenous species at 10’X10’ spacing, fencing of poles and gates, construction of water courses along with four water tanks, installation of two turbine tubewells and setting up of rain harvesting mechanism.

The park will be equipped with all facilities, including horse and jeep tracks, enclosures of local birds and animals, camping sites, picnic spots, shelters, huts and jeep safari. A specific area will be allocated for the nursery of indigenous plants.

CDA Director Environment Malik Auliya Khan told ‘The News’ that the construction work on the forestry park would hopefully be started in a couple of days and it would be completed in five years with financial support of the Planning and Development Division.

He said the main purpose of the project is to sustain wildlife and maintain environmental settings of the area. According to him, indigenous saplings and different species of animals would be introduced in the park. The park would also have camping facility especially for students.

“Jogging tracks would be developed besides various other recreational facilities but all development work would be completed without causing any kind of damage to the natural environment of the area,” he said.

Malik Auliya Khan said that the Planning Commission has approved the project after thorough consideration and it would continue to provide every kind of assistance to the CDA for its timely completion.

An annual plantation competition would be a regular feature. All institutions and departments having blocks in the park would participate in it. “Participants would be bound to plant only indigenous species of plants.”

Development still poses huge threat to Spanish coastlines

Environmentalists are warning that many protected coastal areas in Spain are under threat from property development, some of which they claim is illegal.

A new report from international eco campaigners Greenpeace, Destruction at all Coasts 2009, says up to 8,000 kilometres of coast are threatened. It looked at 233 protected areas and found that 120 of them are under threat from construction, pollution or infrastructure.

The report also indicates that the world economic downturn, which has hit the Spanish property market hard, has not, however, acted as a buffer to protect endangered areas as there are some 562,000 properties, 29 golf courses, 51 harbours and 14 commercial centres either under construction or have planning approval in protected areas.

'Spain's coastlines have become a cemetery of cement and the last few remaining protected parts are in extreme danger of disappearing,' said Greenpeace's director in Spain, Juan Lopez de Uralde.

The report shows that Andalucia, Valencia and the Canaries are the worst. Some 21 areas are under threat in Andalucia including La Albufera Natural Park, Cabo de Gata-Nijar Natural Park and Grandilla.

It also points out that Spain has more legal proceedings open for abuse of the environment than any other country in the European Union.

It describes Spain as being saturated with unsaleable properties with more than a million units empty. 'The downturn has not stopped anything, in fact it has got worse as the authorities have the philosophy that the coast can support everything,' said Lopez de Uralde.

Greenpeace wants the Spanish government to tighten the country's coastal law, to buy up protected land promise to demolish illegal buildings. Pilar Marcos, who is responsible for the Greenpeace coastal campaign in Spain, said that the organisation has noted 625 suspects in 478 cases of planning corruption and that more than half of these suspects hold public office in Spain.

Greenpeace also says that Spain had taken no steps to stop the deterioration of its coastline in recent years and done little to upgrade sanitation infrastructure and water treatment on the coast to keep up with development development needs, Greenpeace said.

'Local governments get most of their income from taxes and fees associated with building and construction, something which fuels the deterioration of the coastline. Solutions have not been applied by practically any institutions who are more concerned with short term benefit than the kind of future inherited by coming generations,' the report said.

A spokesman for the Environment Ministry declined to comment.

New property builds decline in New Zealand ahead of real estate rule changes

The number of new properties being built in New Zealand is falling despite new stock being regarded as a key part of efforts to lead the economy out of recession.

Home building approvals fell for the first time in three months in June, signalling that lower mortgage rates are yet to kick start sustained demand for property.

Official figures from Statistics New Zealand showed that permits declined 9.5% from May. Second quarter approvals rose 16% from the first quarter and the trend in approvals is rising by about 2% a month, the agency said.

But experts had been expecting a faster pace. Economists say that new building approvals need to keep pace with increasing property sales to lift the outlook.

Overall property sales rose 40% in June, according to figures from the Real Estate Institute. So they are much further ahead than new property approvals.

As a result interest rates are expected to remain low. Reserve Bank Governor Alan Bollard cut the benchmark interest rate to a record low of 2.5% in April and will probably leave the rate unchanged at his review to help the economy recover from its worst recession in more than three decades.

There is also concern about the impact of rules governing about 70,000 house sales annually that will change in three months when the new Real Estate Agents Authority opens.

The authority replaces both the Real Estate Institute and Real Estate Agents Licensing Authority's self-governing and regulatory functions.

The aim is to increase standards, raise professionalism and boost consumer confidence in the industry. Currently only the agent who employs branch managers and sales people needs to have a certificate from the Real Estate Licensing Board. Under the new regime, from November all individuals involved in the sector will need to have a license so that all agents, branch managers and salespeople are regulated and accountable.

A new rule book will be brought, new written guidelines must be provided to those buying and selling houses before contractual documents are signed, and there will be a rigorous complaints and discipline procedure.

Falling prices and excess of supply in Dubai will mean better deals for tenants

All real estate markets in Dubai are continuing to experience price falls but the rate of decline is slowing and there is cautious optimism that the bottom could be reached before the end of the year, according to the latest analysis.

Property investors are preferring to lease rather than selling when the market is at such a low point so they are hanging on rather than accept low offers, says the report from CB Richard Ellis Middle East.

'Dubai real estate endured another difficult quarter with minimum sales activity and further evidence of weak sales levels across all sectors,' said Matt Green, associate director for research and consultancy.

In the commercial sector office space is currently outstripping demand as new completions add further pressure to existing stock. Several projects previously expected to enter the market during the first haf of 2009 are now being pushed further back as developers halt and slow construction, the report says.

A slowdown in business activity has caused a major drop-off in required office space creating excess space in older buildings over the last six months as companies downsize because of market conditions.

Of those companies currently in the market for space, it can be noted that new companies and companies formerly operating out of business centres are typically searching for fitted-out space emerging from older buildings as this drastically reduces setup costs. Also vacancy rates within newer locations remain high compared to older office districts.

In the residential market the exodus of the expatriate workforce, along with new stock entry, has resulted in a sharp drop in lease rates for residential apartments across all property types.

Traditional locations such as Bur Dubai, Deira and Karama, which previously had high occupancy ratios, have seen the emergence of vacant apartments in older and newer buildings, the report also shows.

Among non-freehold locations newer residential districts such as Al Barsha and Al Nahda are the worst affected.

Also during the last nine months many new buildings entered the market resulting in a hefty drop in lease rates. This has, however, allowed existing tenants to move to higher denomination apartments at the rate of their existing units.

Declining lease rates and the movement of existing tenants has forced landlords to opt for incentives. These include payment options of full a year's rent in advance.

Green said that lease rates for both the residential and commercial properties sectors are likely to see a further drop over the remainder of the year but the decline will be marginal compared to the drop since the first half of 2009.

An important factor is the next six months will be the amount of stock coming onto the market with many projects in the latter stages of completion. The impact is expected to result in further competition betweem landlords and greater incentives for tenants, the report concludes.

'The outlook for the second half of the year remains negative but importantly forecast levels of decline are notably less than already experienced during the first half. A period of minimal negative growth over the next three to six months could see some stability achieved and the market bottom called before year end,' added Green.

Real estate market observers in US talking of recovery

Residential property prices are soaring beyond expectations in many markets in the US with analysts and market observers starting to talk about a recovery and growing confidence in the real estate sector.

Many are eagerly talking about a slowing of declines in home sales and median sales prices across the US. Phrases being used include 'housing bottom' and 'recovery in sight,' with several financial institutions going so far as to tell shareholders the recession itself is at an end.

Others are more cautious. For example, even although Radar Logic's RPX Monthly Housing Market Report showed three months of stability in the composite home prices, its chief executive officer Michael Feder has been reluctant to use the word 'recovery'.

In a special report published last week the real estate data and analytics provider acknowledged the encouraging signs of stability in house prices, but refused to be explicit on whether or not the bottom of the market has been reached.

Radar Logic pointed to home prices soaring in many markets beyond the expected levels, given historical seasonal patterns. This trend suggests price increases seen recently are due to something beyond simple seasonal swings.

Along with strong gains in prices studied by Radar Logic, housing starts increased continually since the beginning of the year. Existing home sales rose steadily through the year and new home sales are also on the rise since March, indicating the gain in home sales is not due only to high foreclosure resales as buyers work through foreclosure inventory.

'While houses may sell at a discount from their peak values for years to come, the return to normal seasonal patterns suggests that sustainable appreciation could return to the market soon. Attitudes have changed dramatically since last winter and the fear of many investors has turned to optimism,' the report says.

But the question remains whether the trend will continue through the approaching winter and the expected seasonal downturn, Radar Logic analysts said. Buyers tend to retreat for winter and remain on the sidelines until February, when volume usually picks up again.

So prudent observers like Feder are waiting until winter passes to make judgments on the market, as any current recovery trends should become more apparent between now and next buying season.

'A positive sign to look for is a winter home-price decline that is less severe than would be expected given past seasonal price patterns. This would indicate that consumers' confidence in the housing market is strengthening and that a strong upcoming buying season could be on the way,' the report concluded.

CDA directed to submit report in Sector E-12 case

Justice Muhammad Ramzan Chaudhry of the Islamabad High Court (IHC) here on Tuesday directed the Capital Development Authority (CDA) officials to submit a detailed report before the court regarding the status of the land in Sector E-12.

Earlier, the chief justice of the IHC had taken a suo moto action on the land dispute after a man through a letter intimated the court that the CDA had announced Sector E-12 in 1989 and after a lapse of 20 years with all installments of plots already deposited, nobody till now has been given possession of plots.

A CDA director and a legal counsel of the civic body, Barrister Masroor Shah, Tuesday appeared before the court and said that the land where Sector E-12 was to be developed belongs to the CDA, but it is not in its possession.

The IHC judge asked the CDA officials to give a time-frame for the resolution of this matter, but they said that they could not give a time-frame.

Upon listening to both sides, the IHC judge put off hearing in the case till August 10.

In another case, the Aabpara Police Station SHO submitted a written reply in the court regarding the missing of former MNA Shah Abdul Aziz. He apprised the court that he is not in the custody of Aabpara Police Station.

In his reply, the SHO also told the court that the Aabpara Police did not arrest Shah Abdul Aziz.

The deputy attorney general (DAG) denied claim of the petitioner that Shah Abdul Aziz was arrested along with a suspected terrorist, Fidaullah. He said that he was arrested from Hill Road which is not in the jurisdiction of Aabpara Police Station.

During last hearing in the case, Justice Amjad Iqbal Qureshi of the IHC had directed the deputy attorney general to submit his reply in the habeas corpus petition of Shah Abdul Aziz.

The petition was filed by Mehboob Elahi and Khalid Khawaja on June 22 for the release of Shah Abdul Aziz who was allegedly abducted in May 2009. The petitioners suspected that he was kept in illegal confinement at Aabpara Police Station.

The IHC judge adjourned hearing in the case till July 24.

In another case, a division bench of the IHC, comprising Justice Muhammad Arshad Tabrez and Justice Syed Intikhab Hussain Shah, adjourned hearing in the bail cancellation plea of former ‘khateeb’ of Lal Masjid Maulana Abdul Aziz. The hearing was put off, as lawyers from both sides could not appear before the court.