Pakistan Property & Real Estate News

CDA to upgrade Garden Avenue into a dual carriageway

Islamabad: The Capital Development Authority (CDA) is all set to launch the project to improve the existing Garden Avenue into a dual carriageway as well as resume work on the stalled Kashmir Expressway project during the current fiscal year.

Sources in the CDA told ‘The News’ that physical work on the project to dualise the existing single Garden Avenue starting from the I-8 Intersection on the Islamabad Highway to Murree Highway near Best Western Hotel will be launched by January 2010.

The road snakes through the National Park Area skirting around National History Museum, Lok Virsa at the foothill of Shakarparian and eventually joins the Murree Highway after crossing the Islamabad Sports Complex. “There are some more very important institutions and facilities coming up in this area and turning the Garden Avenue into a dual carriageway will go a long way in meeting the future traffic demands,” the sources said.

The commuters getting off the 7th Avenue and heading towards Rawalpindi or the other way round are still using the Garden Avenue, as an alternate route. At present Garden Avenue from I-8 intersection to the Chand-Tara Chowk is in good condition. However, the portion from the 7th Avenue turning right up to the Murree Highway on the flank of Best Western Hotel is a bumpy ride strewn with pits, ditches, speed breakers and other more clear signs of wear and tear as a result of diversion of all sorts of traffic when the Murree Highway was being widened a few years back.

CDA spokesman Syed Mustafain Kazmi when contacted told ‘The News’ that physical work on the project is likely to start in the third quarter of the current fiscal year. “It would be an 18-month project, to be undertaken by the CDA out of its own resources. There would also be an offshoot of this project which will head towards the Murree Highway straight from the existing 7th Avenue turning on the Garden Avenue. Once both these links to the Murree Highway are completed and opened for traffic, these will take off a lot of load from Islamabad Highway as well as provide an alternative route to those heading to Islamabad Airport,” he added

He said that the second bigger project is expansion of Kashmir Highway and turn it into a five-lane each side Expressway involving a cost of Rs2.2 billion and it will be completed within 24 months. This project is a public sector development project (PSDP) with a 50 per cent funding by the government, which was actually to be launched in 2008. However, it ran into snags because of insufficient funding by the government during the fiscal year 2009-10 budget, the work on the project was put on a halt.

He said the government allocated Rs300 million for the Kashmir Expressway project in the 2009-2010 budget. “However, now there are some more funds available with the CDA, which actually were allocated for some other projects and are still lying unused. So, the authority is making a request to the government to divert those funds to the Kashmir Expressway project. If that is done, it would certainly help launch and execute this important project at an early date,” he added.

In the first phase existing Kashmir Highway would be turned into a five-lane each side Expressway from Golra Morr Toll Plaza to the 9th Avenue junction.

“The short sightedness of the planners who decided to have traffic signals at the Kashmir Highway-9th Avenue intersection when the 9th Avenue was being designed and constructed has clearly created a big hurdle in way of executing the work of Kashmir Expressway now, as a fly-over at this juncture is likely to be the only answer to the future demands of traffic flow from this point. With the Zero Point Inter-change likely to be completed by the end of next year, it would only be proper to have an inter-change or at least a well-designed flyover at this point to maintain smooth flow of traffic on the Kashmir Expressway,” sources in the CDA told ‘The News’.

Housing programme for low income groups reviewed

Sindh: Sindh Chief Minister (CM) Syed Qaim Ali Shah has said that the present government was implementing Shaheed Bhutto’s programme of Roti-Kapra-Mukan to provide shelter to homeless people.

In this regard, poor families would be provided houses under the Shaheed Benazir Bhutto Housing Programme for the poor in various cities of the province.

Chairing an important meeting in this regard, Shah said that this year at least 10,000 people would get the facility under this programme.

He said these houses would be provided to poor, low income and low-paid employees.

In a detailed briefing on the occasion, Provincial Minister for Housing Agha Taimur and Special Assistant to the CM Zia-ul-Islam said that the Speaker, National Assembly, Fahmida Mirza would inaugurate the first ‘Sister Benazir Basti’ on December 1 while construction of houses for 125 families would soon be started in Garhi Khuda Bux and in Dah Janoi Sukkur, Deh Nagan Karachi, Deh Luqman, Khairpur, Deh Rerhi (Karachi).

Top primary schools can add up to 4.6% to the value of a property, report shows

High performing primary schools add value to property prices across all regions of the UK but particularly in Yorkshire and Humberside, according to a new report.

A 10% higher Standard Assessment Tests attainment equates to an average property price premium of 3.3% as families are prepared to pay more to live near a good school, research from the Nationwide Building Society shows.

In some parts of the country the premium was 4% of greater with Yorkshire and Humberside experiencing a 4.6% premium and the West Midlands 3.6%.

The lender used its House Price Index and primary school performance tables published by the government to assess the impact of high performing schools.

‘In deciding on a location for their family, parents can place a great deal of focus on the level of education that the local school can provide for their children when growing up.

Primary school catchment areas tend to be relatively small and are driven by proximity to the school,’ said Martin Gahbauer, Nationwide’s Chief Economist.

The report isolated the specific impact school performance has over and above other property characteristics, such as property type, size and local neighborhood type.

Across England, an otherwise identical property will command a premium of 3.3% (nearly £6,000), if the local primary school has a 10% higher pass rate.

This is up from the 2.4% premium recorded the last time Nationwide conducted research in 2004.

The report also looked at how primary school performance compares with other features that impact on property prices.

It found it adds more to property value than a second bathroom, but somewhat less than a 10% increase in floor area.

Other more substantial improvements, such as a loft conversion, can add as much as 20% to a property’s value.

‘On balance, the extent to which primary school performance affects property prices will depend upon the range of schools in the area and whilst it is something that parents are likely to consider when buying a home, it is just one of a number of factors that impact house prices,’ explained Gahbauer.

Scottish commerical property market see first growth for two years but outlook still subdued

Scottish commercial property has seen its first quarter of positive capital growth in over two years with capital growth of 1.1% in the third quarter of 2009, according to a new report.

It is going along with the general market trend in the rest of the UK which also saw positive growth with capital values rising 1.5% and total returns of 3.4%, says the report from CB Richard Ellis.

‘The turnaround comes via an improvement in investor sentiment which has fed through to a general stabilisation of yields,’ it says.

But the report also reveals that so far rental values have not returned to positive growth, although there was a general improvement in the level of falls seen.

In the third quarter ERV’s fell by 0.8%, compared with a fall of 2.1% in the previous quarter.

‘This is a slowdown and shows that occupier certainty is slowly returning to the markets.

Over the past year rental values have fallen by 4.2%, compared with -8.4% at UK level,’ the report adds.

Retail was the top performing sector in Scotland with total returns of 3.3% and capital growth of 1.5%.

This was buoyed by a very strong quarter for retail warehouses, as was also seen in the wider UK market.

Scottish retail warehouse capital value grew by 3.4%, and total returns were up 5.2%.

But High street shops saw only a marginal increase in values of 0.1% and total returns of 1.8%, the report shows.

So on an annual basis, Scottish retail saw returns of -21.6% compared with -18.7% for the UK as a whole.

Rental declines continued although to a lesser extent, falling just 0.8% in the quarter and 5% year on year.

The report shows that Scottish offices were the weakest performing sector, recording only minor capital growth over the quarter but, importantly, recording a total return of 2.2%.

This was marginally weaker than the UK office market which was influenced by strong Central London market.

Scottish office yields stayed flat at 9.5% while office rental values continued to outperform the UK market, with rents falling by 1.3% in Scotland, whilst across the UK rents fell by 2.6%.

The industrial sector saw a positive reversal with total returns of 2.7%, although capital values still fell marginally by 0.1%.

The strong return was supported by a relative jump in the income element of total returns, which moved from 1.9% in the second quarter to 2.8% in the third quarter.

‘Scotland underperformed relative to the wider UK market which saw total returns of 3.5% and capital growth of 1.5%,’ the report continues.

Rental Values fell by 0.3%, a fall of 0.6% on the same period last year. But the wider UK fared much worse falling by 1.1% in the third quarter and 4.2% over the year.

‘Investment into Scottish property improved although, unlike the wider property market, the increase was not remarkable.

The lack of investment into Scottish property in 2009 is still sizeable, with the year end figure unlikely to reach even the deflated 2008 figure of around £1 billion.

Given that strong investor activity hasn’t yet returned, there will likely be further yield compression as the weight of investors’ money returns to Scottish property,’ the report concludes.

Al-Noor town residents dismayed by delay in sewage works

LAHORE: An excessive delay in laying sewerage pipelines after having dup up various sites is proving problematic for the residents of Alnoor Town, an adjacent locality to the Defence Housing Authority.

The area’s residents told Daily Times on Saturday that their streets had become “trenches coupled with heaps of dust” after the Walton Cantt Board started laying sewerage pipelines in the area.

Incomplete: They said the board’s works were still incomplete despite starting three months back. “The authorities concerned are not taking notice of the problems faced by the residents of the area,” they said.

Muhammad Rehan, a resident, said, “People have been unable to drive in the streets since the authorities have dug up most of the roads and have yet to put the dirt back in.”

Menace: He said that in addition to the restricted mobility, another problem was that people were being forced to inhale “a lot of dust”, adding that the airborne dust would eventually result in an increase in lung-related diseases such as asthma.

Another resident, Muhammad Javed, said two or three of the residents in the area had rented out their homes and moved to other areas.

They demanded that the authorities concerned complete the work without any further delay. Some residents expressed reservations about any further works that the authority conducted “because those works would also be delayed”. Walton Cantt Board senior engineer Abu Hanif Saadi said the works had been started after repeated requests by residents of the area, adding that almost 80 percent of the work had been completed, with the remaining 20 percent expected to be completed by the end of the year. He said the residents of the area were indeed facing problems, but the development works had been “their choice”. He said work was being done while making sure it did not damage anyone’s property, adding that in case somebody’s property was damaged, the authorities would address all concerns.

Source: [Daily Times]

CDA to improve infrastructure in G, I series sectors

Islamabad: The Capital Development Authority (CDA) is making all out efforts for provision of basic amenities and improving infrastructure in the markets especially in sectors of G and I series to facilitate the residents and business community.

All future development projects would be executed in collaboration with the stakeholders particularly the traders community.

This was stated by CDA Chairman Imtiaz Inayat Elahi during a meeting with the delegation of the Fruit and Vegetable market I-11 Islamabad, headed by the President, Islamabad Chamber of Commerce, Zahid Maqbool, here today. The Chairman said that development of the road infrastructures, provision of public toilet facility, developing parking areas and improving the sewerage system in the markets is being given top priority. Imtiaz Inayat said the shortage of drinking water facility for the fruit and vegetable market will be addressed by improving the already installed tubewells in the area.

The chairman directed the Water Management Wing to make the tube well functional which is not operational these days. He said that space for constructing the public toilet facilities at fruit and vegetable market would be provided by the CDA, whereas the construction cost and maintenance would be the responsibility of the traders.

Imtiaz Inayat said that issues of streetlights, cleanliness and parking would be resolved in consultation with the traders of the market.

The chairman directed the concerned department that existing sewerage lines may be upgraded and improved to resolve the sewerage issue.

Chairman said that a special task force has since been constituted to address the day-to-day issues of the markets. Market Coordinators are being deputed in all the markazs of the capital in this regard.

Global construction industry optimistic about 2010 but report warns recession impact yet to come

The construction industry worldwide is quietly confident about the 2010 despite the deepest recession for 60 years with most believing that profits will stay the same or increase by the middle of next year.

Almost two thirds of construction firms who took part in the annual global construction survey by KPMG were positive.

The research, covering 30 countries, found that the sector appears to have weathered the economic storm with 64% reporting business would stay the same or improve.

The longer term nature of many projects may have offered protection against the immediate impact of the recession, but that does not mean 2010 will necessarily be a good year, according to Fiona McDermott, KPMG’s head of building and construction for Europe, Middle East and Africa.

Commercial and residential property work has suffered as funding dries up in the wake of the global financial crisis, the report points out.

And McDermott warned that although the construction industry was reporting a relatively positive outlook, with around half of respondents reporting order books and profit at similar levels to a year ago, there may be worse in store for the industry later on.

‘Many companies are living off the profits of contracts secured before the recession, and whether such performance can be maintained is dependent on a number of factors, not least a general economic recovery,’ she said.

‘Although the sector appears to be in fairly good shape at the moment, we have to ask ourselves whether 2010 be the year that industry feels the pain already experienced by other sectors of the economy,’ she added.

The survey also found that the majority of respondents do not feel that government stimulus packages will bring a significant increase in opportunities in the next 24 months, with just 12% of worldwide respondents believing they will be of substantial help.

However, those respondents in Asia Pacific were much more optimistic than those in the rest of the world, with 82% of those in the region expecting a moderate or significant increase over the next 24 months.

Property price confusion clouds perception of real estate recovery in US, survey shows.

Gloomy outlook for Dubai property market

It could take a decade for Dubai’s troubled property market to recover with the latest published report indicating prices could fall by up to 30% from current levels.

The outlook from analysts at investment bank UBS is extremely pessimistic. Despite real estate prices in the city already falling at least 50% from the peak of the market in 2008, the UBS report sees another 20 to 30% decline in the pipeline.

Analyst Saud Masud said that a diminishing populations and concerns about oversupply next year as more projects are completed means that Dubai’s residential property market may be 25% oversupplied by the end of 2010.

‘We expect it will take at least a decade for property prices to return to previous peak levels, and see only modest growth in real estate asset prices subsequent to a market trough in 2011,’ he said.

The report predicts that the emirate’s population will shrink by 8% this year and by 2% in 2010. It points out that that nearly 50% of the workforce is employed in real estate or construction, industries where 70% of projects have been delayed or cancelled.

The report also indicates that there will be an excess of 30,000 to 40,000 residential housing units in the next 12 to 18 months in the best case scenario and 90,000 in the worst case.

Analysts are not impressed by recent reports of modest property price increases and say this is mainly due to owners keeping their properties off the market and low transaction volumes.

A lot depends on how well the economy performs.

Should GDP growth slow to 6% per year in the 10 years after 2011, and ‘generously’ assuming that house prices still grow at the same pace relative to GDP, this would lead to annual growth of 9% in real estate prices, the report says.

On the face of it this might appear a good outlook, the even this would not take property prices back to peak levels.

Job creation will be the key to boosting Dubai’s economic growth and, consequently, real estate values, Masud said.

‘This will be a complex issue as the Emirate redefines itself over the coming years and finds new growth levers outside the property sector, through commerce, education, banking, tourism and healthcare,’ he explained.

Rs 1.2 billion RDA project: Construction of parking plaza to start i

Rawalpindi: Rawalpindi Development Authority (RDA) on Thursday asked Regional Transport Authority (RTA) to vacate the wagon stand at Fawara Chowk to start construction of Rs 1.2 billion multi-storey Parking Plaza.

A well-placed source in RDA told Daily Times that RDA Director General Makeen Shahbaz had written to Secretary RTA to immediately shift the wagon stand from Fawara Chowk to Liaquat Road near Government Gordon College, as RDA would start construction of parking plaza next month.

Utility services: He said RDA had also asked the SNGPL, PTCL and WAPDA to shift the utility services in and around the wagon stand and it allocated Rs 2.5 million for the shifting of utility services.

He said the parking plaza was RDA’s first experience and it had completed all arrangements to make this project a success. He said the authority had already approved the design submitted by the National Engineering Services of Pakistan (NESPAK) and finalised the contractor.

NESPAK: He said NESPAK had completed the design of the plaza, which could absorb quake-shocks. He said the plaza would cover four kanals and accommodate at least 1,500 two-wheel and four-wheel vehicles on daily basis.

He said construction of a parking plaza was need of the hour, as traffic congestion in the city was a routine matter in the downtown due to growing number of vehicles. He said RDA had come up with the parking plaza after taking stock of the parking problems in the area.

He said RDA would construct the plaza vertically to meet shortage of space.

He said after the completion of the Parking Plaza, the wagon would be shifted to its basement to make the city clear from the traffic congestion.

He said according to a study conducted by RDA, over 60,000 vehicles passed through Fawara Chowk daily. He said roadsides of the chowk could accommodate parking of only 200 vehicles against requirement of place 1,200 vehicles.

He said parking plazas on main roads eased traffic flow throughout the world, especially in New York and Dubai.

He said RDA would initially construct three floors of the plaza as a pilot project and allocated Rs 80 million for this purpose in its annual budget. He said the remaining two floors would be built in coming years.

City bonuses and foreign cash injects competition into the UK property market

A shortage of supply and increase in buyers across the UK will continue into 2010 as foreign buyers and those with City bonuses compete for the very best real estate.

The latest predictions for the real estate market next year are optimistic with experts agreeing that although prices are likely to soften in the Spring, a shortage of supply means that the majority of good houses are selling under competition and gazumping is back.

The best properties in popular locations will do well, according to experts from The Buying Solution, the independent buying consultancy of property consultants Knight Frank.

‘Lack of supply and pent up demand has meant that we have seen competitive bidding on a number of properties towards the latter part of this year, and a return to gazumping in some cases,’ confirmed Ran Morgan, Partner and head of Central region.

‘For 2010, we anticipate a continued lack of supply and competition from buyers.

We have a number of potential clients who believe we have reached the bottom of the market and are keen to purchase in popular areas such as Oxford and the Cotswolds.

Most are UK buyers, including families looking in areas with good schooling, occasional second home owners and city buyers who anticipate bonuses,’ he added.

Bobby Hall, Partner and head of Southern region, has experienced a similar pattern with a number of competitive bidding situations, particularly where prices have been adjusted to reflect current market conditions.

‘For 2010, I believe that we will see more supply coming to the open market in spring throughout West Berkshire, Wiltshire, North Hampshire and Dorset, and that we are likely to see city bonus buying in the second quarter and onwards in the open market, prior to the election,’ he said.

In the Home Counties lack of supply is keeping prices stable, according to Andrew Giller, Partner and head of Home Counties.

‘I expect this to continue into the New Year, and whilst supply/demand is unbalanced, there is likely to be continued competition for the most sought-after houses, pushing prices above guide as we have seen in recent months,’ he said.

‘We have had a number of enquiries from those anticipating bonuses who want to move out of South West London down the traditionally popular A3/M3 and M40 corridors for schooling.

We also anticipate continued demand from international clients, particularly Russian and Middle Eastern buyers, who are very much back in the market place,’ he added.

There are also rumours of the first active Chinese buyer in the Home Counties with more than £10 million to spend.

High value country houses, estates and land remain popular with foreign buyers.

‘In my view, the top end of the country house market, that is £8 million plus, will continue to be short of supply in 2010, however I believe that there will be an increasing number of properties available privately, perhaps as much as 75% compared to 25% on-market, but vendors will want premium prices,’ said Mark Lawson, Partner and head of high value houses and landed estates.

Source: [Property Wire News]

Cash purchases for property to be banned in Bulgaria

All real estate transactions in Bulgaria from January 2010 are set be conducted through bank transfers, outlawing cash purchases.

An amendment to the country’s Notary Act put forward by the Justice Ministry is set to be approved by Parliament before the end of the year.

The aim is to reduce real estate fraud and money laundering, an official said.

The change was first discussed a year ago as part of a wider plan to reduce corruption and crime as well as ensuring that all fees and taxes owed to the state are paid.

It will mean the creation of a State Depositary Bank which would serve as a guarantee for all payments in the form of the state acting as custodian for deposits.

It will not have the functions of a commercial bank, hence it will not appear as their competitor, according to the draft bill.

It will not charge interest but will levy a certain fee on every deal.

The draft has been modelled on the system in France.

The idea is that the bank will be used by notaries and lawyers irrespective of the deal, whether it be the purchase of real estate or a vehicle or other transfer of ownership or bankruptcy.

One of the main changes for buyers and sellers will be the introduction of a waiting period during which the money subject to the deal will be kept at the deposit bank.

The French experience shows that this is usually about 25 days during which the seller cannot touch the money.

Another change is the new fee charged by the bank but no figures have yet been released as to what this might be although it is likely to be on a sliding scale relating to the price of the property being bought.

One of the concerns is that it may lead to buyers and sellers agreeing a lower price for the official transaction and then cash changing hands privately.

This is known to happen in France.

‘Many people are willing to risk not reporting the real amount of the sum as long as it saves them taxes,’ said Biserka Marinova, owner of real estate agency Lega Real.

Justice Minister Margarita Popova and Finance Minister Simeon Dyankov said they are confident that the bill will be approved by the end of the year.

Off plan recovery in Dubai unlikely for two years, according to property industry experts

A recovery in the off-plan property market in Dubai is unlikely before 2011 and even that will only happen if developers concentrate on quality and win back investors dented confidence, it is claimed.

Developers also need to tie pricing plans to constructions milestones in order to win back investors who have been put off by delays and cancellations caused by the economic downturn.

‘Investors have been holding back payments because construction is not starting and developers can’t move forward because investors are not paying, that is the reality of the current situation, said Sana Kapadia, Vice President of Equity Research at EFG-Hermes.

‘The recovery of the off-plan market in the United Arab Emirates will happen only from early 2011.

Any recovery before that is unlikely.

Pricing plans would need to be tied to construction milestones as that will hold the faith of buyers in the real estate market,’ he added.

Indeed some think it will take longer.

According to Chet Riley, Vice President of Real Estate Equities Research at Nomura International, believes it will be early 2012.

‘The over supply of residential units in the property market needs to be absorbed in the next two to three years.

It is unlikely that the off-plan recovery will happen before 2012,’ he said.

Confidence has been so severely dented that new investors will need to be won over by developers with more than just promises.

Elaine Jones, Chief Executive Officer of Asteco Property Management, said she agreed that developers must maintain the progress of their projects as per the schedule promised to investors.

Experts believe that tie-ups with banks and mortgage companies could help to ensure adequate funding is in place from the onset and avoid the current viscious circle and stalemate.

They also believe that developers will need to work more closely with regulatory authorities to ensure that investors interests are protected and this could also help build confidence again.

‘Aspects such as construction-linked payment plan will help to alleviate the financial burden of holding real estate if the project is delayed beyond the proposed completion date,’ said Jones.

Kapadia pointed out that developers have themselves to blame for fuelling the speculation and flipping that led to the downfall of the off plan market.

‘Developers must avoid the trap of speculative payment plans that is 2 to 5% initial deposit versus the bulk at completion.

DHA head reviews development work

KARACHI - Administrator DHA Brig Khalid Tirmizi visited the infrastructure development site of DHA Phase-VIII to review the progress of work being carried out in the area. Engineers of DHA Phase VIII, contractors concerned and project consultants were present on the occasion. DHA Phase-VIII is spread over an area of approx 4,150 acres of land, which is almost half the size of total DHA and has remained under developed for the last three decades. Presently, the work on development and construction of streets, water distribution system, sewerage lines, electric distribution networks, construction of major roads including drainage works, main trunk line and water storage facilities in the area is in progress.

The infrastructure development of Sector A and Sector B of HA Phase-VIII is being carried out by M/S China Geo Engineering Company while roads are being constructed by NLC and FWO under the consultancy of M/S Osmani & Company. The Administrator gave a number of on spot decisions and directions to expedite the ongoing work at a fast pace. Tirmizi directed the concerned department to ensure that all contractual and procedural issues of the project were resolved forthwith and things should start moving ahead towards completion. He said that no further time lines for completion of stipulated projects would be given in future. He emphasised the need to ensure that the ongoing infrastructure work was of high quality as per the sound engineering standards and should be completed at the earliest without any further delay. He said that an early completion of work would open a new chapter of development and progress in the area.

The Administrator visited the area of Zulfiqar Commercial Centre and saw the ongoing work of lying of water pipe lines, sewerage lines and drainage system in the area. The construction of street roads with raised asphalet surface tops and proper road slopes for drainage of rainwater are in the final phase of completion.

The major infrastructure and foundation laying work of Commercial Centre has already been completed and in approx four to five months complete infrastructure including major roads would be completed. The area would be opened for construction by end of April 2010. He hoped that with development of Commercial Centre in the area a new leaf of progress and prosperity would unfold in the area. The Administrator also visited the site of Al Murtaza Commercial Centre in Sec B of Phase-VIII and also selected a suitable site for making a helipad in the area. The Administrator inaugurated the newly constructed offices of DHA Phase-VIII on Khayaban -e-Mujahid DHA Phase-V. The elegantly designed offices are well equipped with computers and maps and all updated information about DHA Phase VIII development project will be available there. The office will act as a hub centre to monitor the progress of ongoing infrastructure development works and will give a fillip to the ongoing development activity in the area.

The Bank of England maintains interest rate level

Following the Bank of England’s decision to maintain interest rates at their present level, James Roberts, head of Central London commercial research, Knight Frank, commented: ‘I would have preferred to see the Bank take a wait-and-see approach to further Quantitative Easing, as the actual condition of the UK economy appears uncertain.

The first estimate of Q3 GDP released last month was based on 44% hard data and 56% computer forecasts.

It is possible those computer forecasts are backwards looking, and when more real data becomes available the figures are revised upwards.

In the last ten years, on five occasions between first estimate and final data the GDP figures have increased by a level sufficient to wipe out the Q3 contraction.

After all, does it sound right that a trading nation like the UK could still be in recession when its largest trading partners are expanding again?

‘Turning to the London office market, the Q3 figures were relatively good, with take-up rising in the City and West End, and availability falling in the City.

Since quarter end we have seen further large deals go under offer in the City. In the short-term, further QE will help confidence and keep money flowing into the financial markets which are important as a source of office demand.

However, there is the long-term risk that unnecessary further stimulus is about to go into the London economy, with an inflationary aftermath further down the line.

New laws for real estate in Abu Dhabi expected in the new year

New laws to help make the real estate market in Abu Dhabi more transparent and safer for buyers are expected to be introduced in the early months of next year.

Officials at the Department of Municipal Affairs are currently drawing up the necessary draft documents that will cover escrow accounts, brokers, titles and mortgages.

Regulations covering planning and building are also under consideration.

It is expected that overall five set of regulations will be incorporated in the existing law 19 of 2005 that sets rules for real estate developers, contractors and brokers.

It also includes rules covering off-plan sales, licensing of high rise residential buildings and property registration.

There is no date yet being given as to when they will be introduced but an official told Property Wire that they will only be enforceable once they are published in the Gazette.

‘We are confident that the new set of laws will be the most thorough in the Gulf region.

They will improve regulation and give investors greater confidence when investing in the emirate.

They will give investors comfort to know they are investing in a property with a real title deed and that the system of ownership is recognised in line with best international practices,’ he added.

Central to the proposed introduction of the laws will be a change in the freehold ownership of land. In 2002, Dubai introduced freehold ownership of property in selected areas, sparking its six-year real estate boom. Now they will be extended.

Plans are also underway to bring in strata laws, which regulate the ownership of units within a building and broker laws, which regulate the practices of estate agents and commercial leasing agents.

An improved escrow law will cover commercial and residential property and protect investors and ensure developers actually deliver projects.

Improving the quality of construction in Abu Dhabi is also on the agenda.

There have been several building collapses in the United Arab Emirates in recent months including in Dubai and Sharjah, putting the issue at the top of the agenda.

‘We will be looking at new constructions as well,’ the department official confirmed.

Once the building codes are introduced they will become law and will be implemented only within Abu Dhabi but other emirates are expected to follow with their own new rules.

DHA Executive Board approves Rs 6.6 billion budget for 2009-10

KARACHI: The DHA Executive Board in a meeting on Monday approved a record budget of Rs 6.6 billion for undertaking development works in the DHA for the fiscal year 2009-10.

The development works include infrastructure development of Phase-VIII, construction of a flyover at Ittehad-Korangi Road, a flyover at Sundial Chowk, an underpass at Creek Avenue, repair work of the sea wall along Seaview beach, and construction of Zamzama Shopping Mall Complex and Zamzama Car Parking Plaza.

The meeting chaired by Corps Commander Lt Gen Shahid Iqbal, who is also the president of the executive board, was held at the Corps Headquarters. The executive board was informed that the work on Gizri flyover has almost been completed and it would be opened for traffic in the first week of December. The road works of the project would however be completed by Jan 2010.

The meeting was informed that Creek Vistas, the biggest high-rise residential project of the country having 720 vistas, has been completed and has largely been occupied. The electronic security apparatus system, vehicle access cards and electronic gates are being installed in the project.

Maj Khalid Shaheed Park has also been constructed in the vicinity of Creek Vistas along the coastline. The park is in an advanced stage of completion. The board was informed that demarcation pillars and direction signs have been installed at the site of DHA City on Super Highway.

Boring for water exploration in the area is also in progress with positive and encouraging results. An elegantly fabricated information centre has been established in a container at the project site to provide updated, comprehensive and detailed information about the area and the project. A pilot renewable energy project through windmills has also been established in area for provision of electricity.

The meeting was further informed that work on construction of a dispensary and a community centre in the adjoining village, Goth Allah Dad, at the DHA City site was in progress. The corps commander directed that maximum welfare measures for the local population of the area should be undertaken. He directed the DHA to recruit maximum local youth for jobs in the DHA City project as a welfare measure and to promote goodwill among the local population.

The corps commander asked the DHA to include development of theme parks, artificial lakes, recreational spots with roller coasters and an academic institute of excellence for promotion of knowledge and research in the first phase of DHA City to add to the significance and stature of the new residential estate. The executive board approved establishment of a tissue culture lab in DHA, which envisages a modern method of grooming replica/true plants without help of seeds by regenerating it from a single cell under controlled environment. The pioneering effort would be a stepping-stone forward and bring a revolution in field of agriculture in the country.

The board was informed that computerised archiving of more than 11,8000 plot files held by the DHA transfer and record date was in progress and the archiving of the entire record would be completed by May 2010.

CCPO orders action against land grabbers

LAHORE: Capital City Police Officer Pervaiz Rathore has directed police to take stern action against land grabbers and squatters.

He said police had a compiled list of 43 land grabbers in Lahore had been made and a crackdown had been ordered against these to bring an end to the “land mafia”.

The CCPO said, “We have to transform Lahore into a city where no powerful man can illegally grab the property of any weak person.”

He said the station house officers (SHO) concerned would be held responsible if a land-grabbing incident took place and no legal action was taken. He also appealed to people to pinpoint criminals and cooperate with police by providing information.

Massive OZ house price increases puts heat on interest rates

The Reserve Bank of Australia is expected to put up interest rates when it meets this week after the latest property index showed a massive 3.7% rise in real estate prices.

Residential property prices in Australia are now at a six year high as the country has escaped the worst of the global economic crisis and even the decrease in first time buyer grants has failed so far to have an impact.

Although the number of first time buyers has fallen, this has been offset by an increase in property investment in general, according to experts.

The latest figures from research group Australian Property Monitors shows that Melbourne has the fastest growing real estate sector with prices rising 6.1% in the third quarter of the year, the fastest quarterly increase since 2003.

The average house price in Melbourne was $487,249, compared with $437,560 in September last year and the city’s average house price has now risen 11.4% during the last 12 months.

Hobart saw the second highest rise, up 5.4% for the quarter, followed by Canberra with 4.8% rise and Sydney with 3.6 %.

The rise in national house prices was led by explosive growth in the more expensive suburbs, which had started in capital cities and spread to the rest of the country, APM economist Matthew Bell said.

Prices in Sydney’s eastern suburbs and lower north shore had been rising since June while prices in some expensive suburbs, such as Point Piper and Bronte in Sydney, had taken the hardest hits, falling by up to 30% since 2007, he added.

Some experts are warning that the upturn in the market is not sustainable as it is not underpinned by first time buyers.

The rise in prices in the first home segment of the market started to slow in the September quarter.

Much of this is due to the decrease in first home buyer’s grants in September and rising mortgage rates, but Bell said that so far this has been offset by real estate investors who have been tempted to buy by strong rental yields and the prospect of future capital gains.

He expects this trend to continue into early next year.

But the record rise in property prices is expected to prompt The Reserve Bank of Australia, whose policy making board meets later this week, to put up interest rates.

‘News of another hefty increase in house prices in the September quarter will certainly not dissuade the RBA from raising rates,’ said Chris Caton, chief economist at BT Financial Group.

House price growth in Australia has come despite massive falls in many developed economies due to the global economic crisis.

Low interest rates, generous government grants for new home buyers, relatively low unemployment, and strong population growth have all helped to lift demand for houses.

CDA decides to change location of Forestry Park

The Capital Development Authority (CDA) decided to change the location of Forestry Park from earlier proposed area near Rawal Dam to Bani Gala, the sources told ‘The News’ here on Saturday.

The sources said the decision to change the location of the Forestry Park has been taken after failure of CDA to acquire land, mainly due to opposition from an influential government figure whose land also falls in the earlier proposed site.

“All the efforts to convince the political figure failed after which it has been decided to change the site of the Forestry Park,” said a CDA official who requested anonymity.

The sources said there were also other issues like encroachment of land by some other people that needed extra efforts on the part of CDA to start work on the Forestry Park project.

An official of CDA said there would be no change in layout plan and the Forestry Park would be set up in line with parameters set at the time of approval of its Project Concept (PC-I).

The CDA board had allocated Rs239 million for the project and after preparation of its PC-I all arrangements were made for its inauguration by a top government official. But various hurdles compelled CDA to postpone its inauguration and now the current situation has resulted in change of location of the project site.

According to the PC-I of the project, the park will be developed in five years and 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 that will mention the total number of saplings, their species and other details.

The Planning and Development Division that is also the sponsoring agency approved the project and it was decided at that time that the CDA environment directorate would implement the project under its guidance.

The basic purpose behind development of the Forestry Park is 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.

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

The layout plan of the project also include various attractive 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.

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

CDA Director Environment Malik Auliya Khan told ‘The News’ that there have been many speculations that the Forestry Park project has been shelved but “I want to make it clear that we are going to set up the Forestry Park but on some other location in Bani Gala due to some reasons.”

Replying to a question he denied that failure in acquisition of land is the main reason behind change of site of the project and said it happens sometimes and it is not anything that was not done in the past.

He said CDA would thoroughly pursue the Forestry Park project as it has been prepared not only to protect the existing flora and fauna but also promote local species with the help of people.