Pakistan Property & Real Estate News

Real estate prices in Bulgaria still too high for property market revival, reports indicate

The real estate market in Bulgaria is not expected to see a sudden revival in 2010 as prices are still perceived to be too high, according to the latest industry reports.

Those who are interested in buying are looking for bargains. The most popular property is currently apartments in Bulgaria’s capital Sofia and Varna, the third largest city in the country, that are priced around €40,000, according to a report from the Address real estate agency.

Data from the agency suggests that about 73% of buyers from both Sofia and Varna have said that they were prepared to purchase real estate at that price, if available. ‘Earlier in 2009, people would spend up to €50 000 euro for a home, but now they are hesitating. Most buyers simply don’t have more funds to spend,’ explained Kaloyan Bogdanov, Address’ marketing manager.

Due to the current declining market, buyers are waiting for prices to reach a new low before they make a final decision and the driving factor in real estate transactions in 2010, could end up being so called double estate deals whereby a customer sells a property to finance the purchase of another one., according to Tsvetelina Tasseva, manager of Address.

Banks are also expected to enter the market significantly and offer houses which were foreclosed from customers who failed to cover their mortgages. But this could result in further price falls, Tasseva added.

Varna had the highest real estate prices in the country, according to the latest from the National Statistics Institute, with property selling for 1,686 leva per square meter. Sofia had the second highest prices at 1,585 leva per square meter and then Bourgas at 1,360 leva a square meter.

Its latest reports shows that overall, real estate in Bulgaria lost about 20% of its value in 2009, with prices falling fastest in the fourth quarter of 2009, down 6.4% in some areas.

However, the real worth of property in Bulgaria is somewhat difficult to calculate. While the economic crisis has undoubtedly taken its toll on the industry, the widespread practice of declaring a figure different from the actual appraised value during a transaction means that real estate pricing is hard to regulate.

According to Tatyana Emilova of real estate consultancy firm Colliers, the value of real estate is expected to fall by another 10% on average by July 2010. The ongoing drop in value in the first half of the year was expected to be followed by a stabilization in the market in the second half of the year, she said.

New real estate law in Dubai to tackle failing developers and cancelled contracts

More new real estate laws being considered for Dubai which will give investors grounds to cancel their contracts if they fall victim to failing developers and aimed at restoring confidence in the emirate’s property market. The real estate investor protection law, which is being looked at by the Land Department of Dubai, will detail grounds upon which a property buyer may demand cancellation of a contract.

Grounds for cancellation would include a developer’s refusal to link payments to construction milestones, or if he makes material changes to specifications. The law will also deal with refund or replacement issues in the event of a material defect and financial penalties for delay in delivery.

‘There are lessons to be learned from the crisis and we are emerging with a new legal regime. Loopholes in laws are being dealt with and things will become more organised in 2010,’ said Emad Eldin Farouq, senior legal adviser, Land Department.

The move is designed to restore confidence to Dubai's real estate market which has been badly hit by the impact of the global economic crisis. House prices in some areas of the city have fallen by 50% during the downturn.

Currently there is no recourse for investors seeking cancellation of a contract even in cases where construction has not commenced even after years. In May 2009, the Land Department set up a committee to decide on cancellation of unviable projects but no official announcement has been made of any cancellation.

Meanwhile, it has been announced that Saudi Arabia is to have its first mortgage law soon aimed at boosting the real estate industry and allowing banks to diversify their balance sheets.

Saudi Arabian central bank governor Muhammad al-Jasser said that the Shariah compliant legislation which has been discussed for the past two years will consist of five parts. It will define the terms of mortgages, how they are designed, how they are granted, how companies are licensed and how procedures will be enforced.

The law is on the way to the council of ministers before going to the Shura Council, the country’s consultative assembly, for final approval, he added.

‘It will be a qualitative jump in the way we finance housing in the country and in the way we use financial instruments that are linked to the housing market. Hopefully, the mortgage law will ensure the production of sufficient sukuk and corporate bonds that will be held by banks in lieu of government bonds,’ al-Jasser explained.

Govt to launch low-cost housing: CM

CHIEF Minister Mian Shahbaz Sharif has said that the government will launch the low-cost housing schemes in collaboration with the private sector to provide residential facilities to people.

He was chairing a meeting which discussed the low-cost housing schemes here on Wednesday.

Punjab Assembly members, including Maj (Retd) Abdul Rehman Rana, Imran Ashraf, Secretary Advisory Council Kh Haroon, Secretary Finance, Secretary Housing, Financial Advisor Ahsen Chughtai and representatives of developers were present on the occasion. Kh Bilal Ahmed gave a detailed briefing regarding model of schemes.

Speaking on the occasion, the chief minister said the government would provide land for the schemes while the private sector would undertake construction work. He said low-cost schemes would not only promote construction activities but would also generate job opportunities and added that under the schemes, low income people would be provided residential facilities and hundreds of thousands of shelterless people would benefit from them. He said like other development projects, low-cost housing schemes would be completed in a transparent manner.

The chief minister appreciated the model of low-cost housing schemes presented by Ahmed Bilal. The participants of the meeting also gave their proposals and suggestions.

Meanwhile, presiding over a meeting to review the implementation of the Danish Schools Project, Shahbaz Sharif said corruption was the most serious problem of the country which had adversely affected the national development. He said that due to corruption the country had become dependent on others, adding that all the segments of society would have united against corruption and play an active role for rooting it from society. He said setting up of Danish Schools would result in provision of modern educational facilities to children of deprived segments of the society and enable them to join national mainstream.

Public service Punjab govt’s mission: Shahbaz Sharif has said that public service is a mission of the present government and all-out resources were being utilised for this purpose. He was talking to members of the Punjab Assembly from various districts at the Chief Minister’s Secretariat here on Wednesday.

Mr Shahbaz said that government was determined to rooting out corruption and a strict accountability system had been adopted at the local bodies level. He asked the MPAs to ensure the timely completion of various development projects and transparent utilisation of funds in their areas, urging them to maintain a close liaison with people for solving their problems.

Those who met the chief minister included Sheikh Allauddin, Malik Ahmed Yar Hunjra, Muhammad Imran Qureshi, Malik Ahmed Kasoor Lagrial, Syed Haroon Ahmed Sultan, Mehar Sultan Sikander Bharwana and Malik Muhammad Javaid Iqbal Awan.

‘Land mafia eyeing heritage sites’

Karachi: Conservation architect and Heritage Foundation Chief Executive Yasmeen Lari has bemoaned the demolition of historical buildings on M.A Jinnah Road at the hands of the Karachi Building Control Authority (KBCA), and has appealed to the media for help in safeguarding the remaining historical buildings. She pointed out that the land mafia was adamant to demolish historical buildings and replace them with multistorey skyscrapers.

“On one hand, the tragic events of December 28 resulted in the loss of scores of innocent lives, ruined hundreds of businesses, and devastated thousands of livelihoods; on the other hand, a large number of historic buildings were gutted,” she said.

Lari sought media’s help in the speedy return to business of those affected by the fire, through the preservation of the city’s heritage. Her briefing was focused on the recent unfortunate and willful demolition of historic buildings in Boulton Market and the Denso Hall area, which had been affected by fire and arson on December 28, 2009.

Transparency International (TI)-Pakistan President, architect Shahab Ghani; Institute of Architects Pakistan (IAP) President, architect Samar Ali Khan; Pakistan Council of Architects and Town Planners representative planner Sadia Fazli; Pakistan Engineering Council representative Engr Najeeb Haroon; Institute of Architect Pakistan ( IA)-Karachi Chapter representative, architect Mujahid Sadiq; University of Karachi (KU) Department of Visual Studies Head Durriya Kazi; Heritage Foundation board member Shehnaz Ramzi; and Farhan Jamlvy of KaravanPakistan were among those present.

The media was requested to help propagate the cause of saving the heritage structures located on MR-50, 51, 52, 53 and 144, Market Quarter, on M.A Jinnah Road, which had been declared dangerous by the KBCA, mainly because of the collapsed sections in the rear part of buildings. However, at least 50 per cent of all structures and the facades bordering M.A Jinnah Road were intact after the disaster and could be fully restored.

Lari spoke of the demolition that has been going on since January 20, 2010, and said that the structure and facades are being demolished despite advice that remedial measures are available for a major part of these buildings. She reiterated that the restoration process was the quickest way to re-establish livelihoods to help people rebuild their lives on an immediate basis.

She said that through the Foundation’s Adopt-a-Historic-Building Programme, the Karachi Electric Supply Corporation (KESC) was already providing support for the restoration of MR-144 (Hussaini Building).

On the request of the district coordination officer (DCO) Karachi, the Heritage Foundation has agreed to undertake the rehabilitation of four other buildings which have been declared dangerous. The work of removing rubble and debris from these buildings has to be taken up on a priority basis by the city government, to enable the Heritage Foundation to proceed with restoration work of the portions that have been dismantled.

TI-Pakistan Chairman Adil Gilani expressed support for the Heritage Foundation’s cause of saving Karachi’s heritage. He pointed out that a city which has suffered extraordinary violence has also suffered from the acts of the builders’ mafia, which, for commercial gain, is willing to destroy the environment of the city by building inappropriate high-rise buildings even in this area, instead of saving the footsteps of Karachi’s history.

He also reiterated that the role of civil society is to support causes which are beneficial to the general public. He emphasised that where corruption is rampant, such causes must be taken up by each and every one, particularly by the media, in an effort to raise awareness to achieve the goal of a just and equitable society. He also pointed out that if new buildings are built in place of historic buildings, they will have to follow the cutline of 30 feet from the present road edge, and many buildings in this area are already declared protected heritage. Therefore, along with losing valuable heritage, there will be little benefit to those who are bent upon destroying them. If anybody, it will be the small shopkeepers who will suffer the most and may not be able to gain their livelihood because of the greed of others, he said.

Architect Samar Ali Khan appealed to citizens to develop a greater sense of ownership of their city in order to resist attempts to deprive them of valuable heritage. Architect Shahab Ghani pointed out that plans were unfortunately under way to make Karachi a “replica” of Dubai. “Clearly, Karachi has its own identity and an urban character that has grown out of its distinctive historic architecture, which Dubai never had. Accordingly, its unique heritage must be retained and nurtured so that it can continue to endow Karachi with its special flavour. Any attempt at destruction of its heritage must be stopped,” he said.

Engr Najeeb Haroon explained that on the request of the city Nazim, a report on the buildings that had been declared dangerous was prepared by the Institution of Engineers.

The report clearly stated that the portions of buildings that were standing could be easily repaired and made habitable and safe. He offered that the institution was ready to provide honorary services in terms of technical input to save the historic buildings. Architect Mujahid Sadiq expressed complete support to the cause of Heritage Foundation and offered the services of the Institute for safeguarding Karachi’s heritage.

Durriya Kazi explained that groups of students of architecture from KU were already working with the Heritage Foundation in developing information about the buildings and will continue to provide whatever support that may be needed for this purpose. Shanaz Ramzi and Farhan Jamalvi thanked the media for supporting the Heritage Foundation and KaravanPakistan (earlier KaravanKarachi) for the past 10 years and for propagating the message of heritage preservation. They also spoke about the role of civil society as a watchdog in order to take up causes which may not be taken up by other institutions.

In conclusion a moving poem by Farhan Jamalvi and recited by Arif Bahalim of KaravanPakistan was presented on the theme of saving the heritage assets of the city. Farhan said that acts of terrorism also tarnishe the image of the city when urban historic environment and heritage is destroyed. “We have to join hands to save these footsteps of history,” he said.

Source: [The News]

Movements in the Dubai real estate market will be marked by demand, latest overview report shows

Demand is likely to be the main driver of real estate performance across all sectors in Dubai in 2010, according to the latest analysis.

The Dubai office market is becoming increasingly favorable for tenants as it is witnessing a significant demand-supply mismatch along with falling rentals and increased vacancies, says a new report from consultants Jones Lang LaSalle.

While demand levels are increasing, as both existing and new tenants seek to consolidate and take advantage of better quality space becoming available on more competitive terms, there is not likely to be enough demand to meet the high level of new supply entering the market in 2010,’ says the Dubai Real Estate Market Overview January 2010.

Average vacancies across the City are therefore likely to increase from their current level of around 33% during 2010. One reason is that much of this space is contained in non-core locations that international and regional tenants will not consider. So a two tier market is therefore likely to emerge, the report points out.

Vacancies in single ownership buildings in the most sought after Central Business District locations are currently less than 10%, resulting in selective shortages in meeting certain tenant requirements.

‘The tenant is becoming the ultimate winner as the office market is going through a significant adjustment with more vacancies and cheaper rents on offer. This scenario is encouraging for businesses as it offers multiple options for expansion and relocation as Dubai becomes more competitive office location both locally and regionally,’ said Blair Hagkull, Managing Director of Jones Lang LaSalle Mena.

Attractive deals can be found throughout the city’s prime and peripheral areas as rental rates and capital values are hovering at pre-2007 levels,’ he added.

The report also indicates that average prices and rentals in the Dubai residential sector are expected to show more stability in 2010 as the rate of decline has slowed in the past few months. But, while conditions may stabilise in some locations and sectors, the overall market is likely to see a continued decline in average prices and rentals in 2010. The performance of different locations will be more driven by local demand and supply issues.

‘Prices seem to have stabilised over recent months, despite the existing over-supply situation. Stabilisation of transactional volumes is another positive indicator of investor confidence but the lack of housing finance remains a major challenge in Dubai. An improved lending scenario is one of the key factors for a sustainable recovery as the value of mortgages as a percentage of total sales value has dropped significantly during 2009,’ explained Hagkull.

‘With an additional 24,000 units expected to be completed in 2010 and 25,000 units in 2011, there may be an emerging opportunity for both investors and financers in the Dubai residential market as it has already seen a significant level of pricing adjustment in 2009,’ he added.

Rental adjustments were comparatively less in the Dubai retail market than the office or residential sectors but the market is still moving in favour of tenants in 2010. Average rentals have declined by around 29% from the fourth quarter of 2008 to the same period in 2009 and by 13% from the third quarter and the fourth quarter of 2009 on the back of a 15 to 20% decline in retail sales in 2009, the report also reveals.

Several planned projects have experienced delays, which in turn has affected the future supply pipeline. This lower level of future supply relative to planned completions in the office and residential sectors, is providing the retail market with something of a breathing space,’ it adds.

‘This is an interesting time as the dynamics of the Dubai retail market continues to swing in favor of tenants due to falling rents and increased vacancies in some centres. In spite of the cut back in future supply levels, we expect to see an increase in shorter leases, break clauses and rent free periods as we go through this tectonic shift in the market. There will be more and more incentives for tenants due to the shift in power from landlords to tenants. We are also seeing the emergence of a two-tier retail market as occupancy rates in super regional and regional malls remain above 90% as opposed to older shopping centres,’ said Hagkull.

PEC drops plan to set up IMAX Theatre in Lahore

LAHORE - Punjab Entertainment Company has changed its plans to set up IMAX Theatre in Lahore after facing stiff opposition. It is now going to launch the said project at Faisalabad, authorities concerned told The Nation on Monday.

The sources said that delays in the project had badly damaged the technical equipment worth $2 million which was purchased in 2006. Now the sources said the company had changed plans and was planning to set up IMAX Theatre at Faisalabad and was searching an appropriate place. The initial cost of the project was Rs 1.34 billion of which the government had already granted Rs 800 million.

As per details, through this mega project the government wanted to introduce country’s first IMAX Theatre as Part of Education and Entertainment Centre because it has attracted diverse audiences around the world.

IMAX Experience ® IMAX Corporation and the Government of Punjab Province, announced an agreement to install the first ever IMAX theatre in Pakistan two years back. The theatre which was planned to be located in Lahore, was envisaged as a multi-function shopping and entertainment park which was expected to open by September 2005.

The project consists of four sections including films and theatre, shopping alleys, restaurants, and amusement. Out of the five companies in the world, IMAX, the runner of Discovery and National Geography TV channels, was picked up for catering to the screening of 3-D, 70mm movies, which Indian film industry so far has produced only two to show against the tickets valuing Rs 3,000. It is pertinent to mention that only the IMAX machinery has to cost the government Rs 230 million to be paid in forex. He said the primary object of the IMAX project is to educate the people on modern lines. This seriously astonished the court.

A PEC official said that the project was the dream of CM who wanted to use this medium to educate the children who had the chance to pick and drop facility to be given by the government.

Now two years have passed the issue regarding place of IMAX is still ongoing. 40-kanal Doongi Ground, Gulberg had been earmarked to be used in the project.

The petitioner’s counsel challenging the IMAX Theatre, however, took the plea that the public park was there before the creation of Pakistan and could not be used for commercial purposes. He maintained that recreational facilities such as parks and grounds were getting redundant rapidly in the city due to commercialisation of lands and should be protected. It is pertinent to mention that Supreme Court of Pakistan had issued stay order about one year back.

Company took the plea that the project was good for the locals who could get their residences commercialised sell it at ten times higher prices. The petitioner moved another petition in the SC, which stopped the work again.

The company official added that the success that many of our customers are experiencing with IMAX DMR films is leading to increase interest from exhibitors around the world. We have not seen this level of inquiries in more than five years. However, he said people loved IMAX and we are really bullish about the region.”

“The sales activity is very strong”, he said. “We have lots of discussions going on right now with a variety of operators. When the popularity of an IMAX theatre grows in a market, there is often demand for additional IMAX theatres in surrounding markets,” he said.

Regarding Lahore project official assured that IMAX would be set up at major cities of Pakistan and this dream would come true very soon.

Egypt govt confirms new property tax will go ahead but gradually

The new property tax law in Egypt is likely to be introduced gradually, the country’s president has confirmed.

President Mubarak said there are no plans to change the tax which is facing considerable opposition from those that claim it will be too much for a recovering real estate market as it will make owning property more expensive.

A government spokesman said that the property tax will not be a huge financial burden on real estate owners. The law, passed in July 2008 but not yet implemented is now set to be introduced gradually and some say that is due to the upcoming general election as Mubarak does not want to alienate wealthier voters.

But experts are warning that there is considerable confusion about the tax. According to Reham ElDesoki, senior economist at Beltone Financial, there is a feeling that the tax should not be levied until greater economic stability has returned to the country. ‘The president’s announcement will increase the confusion currently prevalent in the market. But the new law will not add significant financial burdens to property owners in Egypt,’ she said.

‘Although the law will generate revenues, it’s not a big payment compared to the property’s market value. It’s very small,’ she said.

Reports so far indicate that the annual tax on property that is worth LE 500,000 will be LE 30, while the annual tax on property that is valued at LE 1 million will be LE 660.

Beltone believes that the tax could have additional positive benefits, causing property owners to make economic use of their unused assets, thus raising property stock in economic activity as well as the number of residential units available, a welcome development in a country with an acute housing shortage.

Abdel Fatah El-Gabaly, head of the Al-Ahram Center for Strategic and Political Studies' economics unit, says it will only be paid by wealthier property owners. ‘This is a burden only for the rich people. This contrasts to the land property tax, that was postponed or deleted, two years ago,’ he said.

‘In my opinion it is because this law has a negative effect on rich people, and they have a voice in the media and power to affect the media, that makes the big debate about this law. When this law was discussed in parliament, there was no debate about it, but in the implementation there is a big debate,’ he added.

El-Gabaly said that implementation will take time. It will mean evaluations of every property and a new organization will need to be set up to undertake the work.

Analysts confident that London office market will lead commercial property recovery

London office market is facing a bright future as a number of reports reflect positive outlooks for 2010 and 2011.

Central London’s office market will see continued improvement in 2010 following a turbulent 2009, according to Jones Lang LaSalle’s latest office research.

It describes 2009 was an exceptional year following a dire first quarter with widespread fears of tenant disposals, lengthy voids on new properties and falling demand, but the outcome at the end of the year was actually very different.

In the City annual total take up was 19% up on 2008, an overall vacancy rate of 9.6% and a grade A vacancy rate of 5.3%. Prime City rents remained stable and JLL said it expected return to rental growth in the next 12 months, with double digit upward growth in 2012 and 2013.

Take up in the Docklands in the final quarter of 2009 was more than the first three quarters combined, although annual total take up was the lowest since 2003. Total available space increased 53% driven by the release of tenant controlled space and the overall vacancy rate at the end of the further quarter was 13%, with Grade A supply at 11.4%.

Annual take up in the West End was down 32% on 2008 levels, overall vacancy rates ended the quarter at 7.7% with grade A supply falling slightly to 4.7%. Prime rents remained stable.

‘This was a remarkable turnaround that few would have predicted. But 2009 was not a great year, it was simply much better than feared. We believe 2010 will bring a continued improvement in the market and risk will be easier to quantify. It will also be a year of opportunity, particularly for those in a position to build speculatively,’ said Neil Prime, head of markets.

London will see rises in headline rents in both the City and the West End this year and next and investment should also keep going strong, according to the latest research from Savills.

It says that in the West End rents could reach £98/sq ft by 2011 compared to 2009’s levels of £88/sq ft. In the City, rents could rise from £47.50/sq ft to £56/sq ft this year. The rises are due to a decline in the availability of new stock as a result of a lack of development, according to the report.

‘We anticipate a firm recovery in the City market this year closely followed by the West End in 2011. Headline rental growth will occur in both markets driven by shortages in new stock but we do not expect a boom in take up as uncertainties in taxation, regulation and public spending will continue to hang over the wider economy at least until post budgets and election,’ said Peter Thursfield, director of Savills city agency.

While Tracy Collins, head of west end agency, said: ‘As supply lessens, the good news for landlords is there will be demand for good quality refurbished stock, whilst tenants who wish to get a good deal will need to act quickly as the window of opportunity is closing.

In the investment market, yields hardened across the City and the West End in 2009 as investment volumes rose. Savills said that the return of UK institutions to buying in these markets would offset reduced interest from international buyers, and there would be no double dip in yields in the office market in 20120.

‘The recovery in leasing markets is good news for the investment market and will provide stability to prevent a double dip this year. We expect to see an increase in tactical selling from vendors encouraged by price rises, meanwhile investors will become less biased towards security as occupational markets pick up and this will broaden their acquisition criteria,’ said Mat Oakley, head of Savills commercial research.

And the latest report from the Royal Institution of Chartered Surveyors shows that the amount of office space available to tenants in London declined for the first time in two years as the London economy started to lead the country out of recession.

Demand for business property increased in the fourth quarter of 2009 with office space and industrial property proving particularly popular but demand for retail space continued to decline. Some 14% more chartered surveyors reported a rise in tenant demand up from eight percent in the previous quarter. This is the second successive rise in tenant demand and the first time that there has been an upward trend since early 2007.

Action against bogus housing schemes

Lahore: After the crackdown on illegal plazas in the city, the Lahore Development Authority has decided to launch an operation against bogus private housing schemes in the provincial capital.

According to a press release issued on Monday, the LDA has cautioned the citizens against fraudulent private housing schemes, directing them to be careful in buying new plots without checking the legalities regarding the documentations of plots. It said the Punjab government, under private housing schemes ordinance 2005, had directed the Authority to check the record of private housing schemes except those in the Cantonment area.

With the help of the Punjab government, the Authority had decided to launch a drive against the illegal housing schemes and their owners involved in deceiving the poor public. The Authority has already informed the people about some of the illegal private housing schemes and is carrying out strict action against them, the press releases said.

Bhara Kahu housing colony construction starts

Islamabad: Ministry of Housing and Works has started levelling of the land in Bhara Kahu for the construction of housing colony while construction of roads is underway and will be completed soon, said Federal Government Employees Housing Foundation (FGEHF) Director Finance Kashif Ahmed Noor on Wednesday.

Talking to this news agency he said all arrangements had been made to launch the first phase of Bhara Kahu housing project.

“Process to get No Objection Certificate (NOC) from the Capital Development Authority (CDA) is in progress and the ministry will get it soon,” he said. About 3000 kanals of land in Bhara Kahu has been purchased and 15,000 flats/plots would be allotted to the government employees, general public and journalists, he added.

Latest real estate report suggest property prices in Dubai are stabilising

Property prices in Dubai stabilised in the fourth quarter of 2009 and transaction levels are also improving, according to a new report. Sales prices for apartments and villas in completed developments across the emirate improved according to the latest data from property services company Asteco. A better economic outlook and better mortgage availability has helped, it says.

In 2009, the average sales price in Dubai stood at AED950 per square foot for apartments, down 16% since the first quarter, and AED1,000 per square foot for villas, down 9% since the start of the year.

Business Bay and International City saw the largest decrease in apartment sales prices since the first quarter, having fallen 23%, Asteco added. In Green Community and Palm Jumeirah prices remained stable with no change since the beginning of the year.

In the villa market, Jumeirah Park experienced the highest drop in sales value since the first quarter of 2009 at 34%, followed by Arabian Ranches, down 29%. Palm Jumeirah and Springs recorded positive growth with 20 and 21% respectively, the report added.

Overall property in Palm Jumeirah is holding its value well and Downtown Burj Dubai, Dubai Marina, Jumeirah Beach Residence, Springs and Arabian Ranches, the report indicates.

‘Lifestyle communities are weathering the storm and the Palm Jumeirah is an iconic development and, with continuous improvement of infrastructure and completion of residential and hotel developments, has become a sought-after destination,’ said Asteco chief executive Elaine Jones.

The report also shows the decline in Dubai rental rates which have fallen by 24% for apartments and 18% for villas on average during 2009. However, compared with the third quarter of 2009, the decline in rental rates slowed in the last quarter with overall decreases of 2% for apartments and 1% for villas.

‘Sought-after developments include Downtown Burj Dubai, Palm Jumeirah and Dubai Marina as well as Arabian Ranches and Springs as they offer residents an abundance of retail and leisure facilities and are in prominent locations,’ the report said.

Property prices rise again in Canada but bank dismisses talk of a real estate bubble

New property prices rose more than expected in Canada rising 0.4% in November, the fifth monthly rise in a row and adding confidence for the real estate market outlook for 2010.

The latest published figures from Statistics Canada also show that on a yearly basis, prices fell 1.4% in November following a 2.1% decline in October. The pick-up in new housing prices follows news from Canada Mortgage and Housing Corporation that housing starts staged a broad-based advance in November, rising 5.9% to an annualized rate of 174,500 units. Resale prices, meanwhile, have risen 21% from a year ago.

Of 21 metropolitan areas surveyed by Statistics Canada, only three - Hamilton, Saskatoon and Greater Sudbury and Thunder Bay - recorded monthly declines. The biggest gains were posted in the Ontario region of St. Catharines-Niagara, up 1.4% month-over-month and Quebec, up 0.9%.

Some analysts are already talking about a real estate bubble and calling for a rise in interest rates to cool the property market but this has been dismissed a premature by the Bank of Canada which said that it would be akin to ‘dousing’ the economic recovery with cold water.

‘Recent house price increases do not appear to be out of line with the underlying supply-demand fundamentals,’ said David Wolf, an advisor to the bank’s governor.

Wolf said property bubbles, such as the one in the US that helped spark the global economic downturn, are usually fuelled by credit expansion, as borrowers and lenders take false comfort from exaggerated house prices.

The current rally, during which existing-home sales have climbed more than 40% on a year-over-year basis and prices have surged nearly 20%, is largely due to ‘temporary factors’, he explained including low interest rates and pent-up demand. Also some buying was the result of people realizing there is a once-in-a-lifetime opportunity to acquire property with historically cheap financing.

‘These factors cannot continue to drive home sales and prices. Thus, we see the housing market as requiring vigilance, but not alarm. If the bank were to raise interest rates to cool the housing market now when inflation is expected to remain below target for the next year and a half, we would, in essence, be dousing the entire Canadian economy with cold water, just as it emerges from recession. As a result, it would take longer for economic growth to return to potential and for inflation to get back to target,’ he said.

The Bank of Canada has pledged to keep its benchmark rate at a record low 0.25% until July in an effort to foster growth and bring inflation to the central bank’s preferred 2% target which is expected in the second half of 2011.

Seasonal dip sees UK property recovery slow but outlook still positive, according to report

Residential property prices in the UK rose at a slower pace in December but fresh demand is still outstripping supply, according to surveyors.

For the seventh consecutive month, more chartered surveyors are reporting that the number of new instructions is increasing rather than falling, the latest report from the Royal Institution of Chartered Surveyors published today shows.

Although fresh demand for property was still outstripping new supply, the gap has narrowed and overall transaction levels were little changed in December, RICS said.

‘The recent loss of momentum in prices and the moderation in new buyer interest can be in part attributed to the housing market pulling down its shutters for Christmas. It is likely that the New Year will see more interest and activity in the market as those who held back start to market their property with renewed optimism,’ said RICS spokesperson Jeremy Leaf.

However, he added that a lack of properties for sale was continuing to support house prices.

‘New enquiries are continuing to outpace new instructions which is helping to push house prices higher,’ he said.

Price increases are still most widespread in London and the South East but prices are still falling steeply in Northern Ireland, with smaller falls still being recorded in Wales and the West and East Midlands.

The report also shows that other demand indicators are also losing some momentum, although they remain in positive territory. The newly agreed sales balance slipped to 22 from 24 while the sales expectations net balance dropped to six from 20.

Transaction levels were little changed in December. The number of sales per surveying firm is still hovering around 19 for the fourth consecutive month while the closely watched sales to stock ratio, a measure of market slack and a lead indicator of future prices, fell back slightly.

The situation is likely to stay positive in London, according to James Perris of De Villiers Surveyors. ‘Buyers are still outnumbering the properties available, resulting in further increases in prices. We would expect this trend to continue,’ he said.

In areas where prices are still falling there is less confidence. Andrew Morgan, of Morgan and Davies in Lampeter, Wales, said he sensed purchasers remained unsure about entering the market, even though property sales improved last year. ‘We have experienced a lot busier third quarter than in the last two years.

However, the market is very sensitively balanced with purchasers still very nervous and cautious. We do not expect many major changes,’ he said.

New deal will make Dubai property market more transparent and professional, it is claimed

A new agreement between the Real Estate Regulatory Agency and the Ministry of Labour in Dubai is set to increase transparency and professionalism in the emirate’s property market, it is claimed. The deal will see real estate brokers in the emirate officially recognised as a separate professional category and allow RERA to further clampdown on rogue operators.

New labour cards and residency visas issued to property brokers will now include their specific job title, replacing the previous practice of categorising them all as sales staff, RERA said in a statement.

Marwan bin Ghulaita, chief executive officer of RERA, said the aim of the move was to increase transparency and professionalism in an industry that has been hit hard by the impact of the global economic crisis.

‘This is the first step towards a complete classification of the real estate professions in Dubai. The overall effect will be to increase transparency and professionalism across the sector. This in turn will boost confidence in property dealings and in the networks of agents and third parties investors depend on to execute their transactions,’ he explained.

Last year, RERA announced plans to stop freelancers from operating in the emirate's property sector under an agreement signed with the Department of Economic Development.

RERA is also close to finalising a comprehensive agreement with the Ministry of Labour that will see all the professions it registers such as valuers, consultants, mortgage brokers, agents, and surveyors, formally recognised as separate job categories by the Ministry.

‘The Ministry has now approved the first step of officially recognising broker as a professional category and this will be included in all the related professional and operations documents,’ Bin Ghulaita added.

Meanwhile it has been revealed that Barclays, Britain’s second largest bank, has won the first foreclosure orders in Dubai, clearing the way for lenders holding about $16 billion of Dubai home loans to take action when borrowers don’t pay. The ruling shows that Dubai’s market is ‘evolving and is poised to come at par with other mature markets of the world,’ the bank said.

Both lenders and developers in the UAE have tried to stem rising defaults through out of court settlements with distressed customers after falling prices left buyers with mortgages worth more than their properties.

That has helped minimise the amount of bad debt on their balance sheets and kept repossessed houses off a market that’s already suffering from too much supply but a 68% increase in bad debt has forces some like Barclays to take action. Islamic lender Tamweel, the emirate’s biggest mortgage bank, revealed that it has several of its own foreclosure claims pending and estimates about 3% of its mortgages are in default.

‘Banks will be more aggressive in pursuing legal action if they see the process is efficient. They were trying to avoid the courts and restructure most of their loans but once they see a precedent has been set they will be encouraged to push more cases through,’ said Antoine Yacoub, a banking analyst at Moody’s Investors Services.

Source: [Property Wire News]

Shopowners of demolished plazas to be compensated

Lahore: The Punjab government has directed the Lahore Development Authority (LDA) and the City District Government Lahore (CDGL) to recover the financial loss incurred by those who had bought shops and flats in the 20 plazas completely or partially demolished by the two agencies – from the owners of the buildings and the delinquent officials who had allowed the illegal construction.

According to an Aaj Kal report, today (Monday) is the deadline for the LDA and CDGL to collect the particulars of shop or flat owners in the 20 completely or partially demolished plazas in the city to compensate them for the damage. The action is being taken on the advice of the Punjab chief minister.

People who owned shops and flats in plazas demolished by the LDA have been advised to deposit original documents and proof of their ownership rights with the director complaints at the LDA office on the Main Boulevard by 2pm today (Monday) or email the documents to ctplda@gmail.com.

The plazas demolished completely or partially by the LDA include Inam Impex, Raabi Centre, Al-Rehman Medical Complex, Ahad Tower, Big City, Tariq Complex and Jeff Heights.

The plazas being completely or partially demolished by the CDGL include Safwan Centre, Zaidan Plaza, Hayat Heights and Dewan Centre.

The people who owned shops and flats in plazas demolished by the CDGL have been advised to deposit their claims with the CDGL District officer (Special Planning) on The Mall by 2pm today (Monday) or email the document to dosp_cdglahore@yahoo.com.

Punjab Anti-Corruption Establishment Director General Kazim Ali Malik told Aaj Kal that the damage caused by the government officials, plaza owners and builders was being assessed. He said the compensation amount would be recovered from them and deposited in the government exchequer.

The people who owned shops and flats in the demolished plazas have been advised to deposit their claims with the agencies’ concerned for compensation, he said.