Singing Pig

This looks like to location for the new Dubai Al Burj super tower (aka The Tall Tower). The centre piece for the new Dubai waterfront city. Close the the 2nd palm and 41kms from Burj Dubai.

 

Dubai Waterfront Development – Masterplan

Owner: Nakheel
Budget: Estimated $14.5 billion

Scope of work: The project, which will be handled in two phases will involve the construction of mixed-use city including residential, commercial and leisure facilities. Planned to accommodate 400,000 to 750,000 people, the development will cover an area of 170 sq miles. Phase one will cover 10 districts covering 31 sq miles and will run from the Palm Jebel Ali to the Abu Dhabi border. The second phase, also called Arabian Canal, will include a man-made creek covering 75 km that will start from the waterfront and will surround the new Jebel Ali Airport into the desert and then ending at the southern channel of the Dubai Marina connecting the marina and the new creek. Dredging and reclamation of 20 million cu m of material will be undertaken on the island that will be located to the north of the Palm Jebel Ali.
Status: It is understood that the ownership of the Arabian Canal has been transferred to Limitless because Nakheel was unable to commit to this delivery schedule.

Dubai Waterfront Development – Phase 2 – Arabian Canal

Owner: Limitless
Budget: Estimated $5 billion

Scope of work: The project will involve the construction of the excavation of the Arabian Canal and will include a manmade creek extending 75 km that will start from the waterfront and will surround the new Jebel Ali Airport into the desert and end at the southern channel of the Dubai Marina, connecting the marina and the new creek. It will be 75 m wide and about 6 m deep and will involve digging and moving 4,000 million cu m of earth.
Status: According to sources close to the project, the client has invited expression of interest for the main construction package. Pre-qualifiers include Kajima Corporation, Shimizu Corporation and Taisei Corporation.

New Dubai Law: “Regulating Escrow Accounts in the Property Developmentin the Emirate of Dubai” was published in the Official Gazette of Dubai (323) on 28 June 2007.

WHO DOES IT APPLY TO?
The Law will apply to any Developer that sells off-plan units in multistorey buildings or residential or commercial
estates in Dubai where the Developer is collecting “on account” installments during the construction of the
project. There has been some debate as to whether the Law will apply to existing Developers and to existing
projects. The Law prohibits any Developer from carrying on the business of “off-plan sales” unless it is registered
and licensed by the Department of Lands and Properties of Dubai (“the Department”). Article 18 says that existing
Developers are obliged to bring themselves in line with the Law within 6 months of its publication in the Offi cial
Gazette (i.e. on or before 28 December 2007) but that the Department may extend the deadline as it deems
appropriate from time to time. Therefore it remains unclear as to whether the Law will apply to its full extent
to existing Developers and developments, but it does seem to suggest that it will.

PRINCIPAL EFFECTS
The Law is designed to control the way in which projects are sold “off-plan” in Dubai and to protect Purchasers in
respect of phased payments made to a Developer during the course of a construction project and in advance of title
being transferred into the Purchasers individual name.The Law provides for: all off-plan sales programs now being subject to prior
approval by the Department; all Developers are required to be licensed by the Department in a “Register of Property Developers”. No
Developer will be able to conduct business in the Emirate of Dubai unless it is so registered with the Department;

The Impact of the New Dubai Escrow Law:
The opening of Escrow Accounts in respect of each individual project by a Developer, and in order to do so
the Developer will be obliged to give advance notice to the Department of any off plan project and submit a
number of documents including the Developer's trade license, membership of Dubai Chamber of Commerce,
the title deed to the land and so forth to the Department as part of the approval process;
the appointment of a number of “Escrow Account Trustees” (“Trustees”) who will be fi nancial or banking
institutions approved by the Department to operate an Escrow Account;
an Escrow Account to be opened in accordance with a written agreement to be entered into between the
Developer and the Trustee under which any amounts paid by Purchasers of off-plan units or which the
Developer receives from their fi nanciers or its own fi nanciers are to be deposited in this Account to be
opened with the Trustee in the name of the project.
The conditions for the operation of the Account and the terms for withdrawal will be the subject of the
agreement with the Trustee and are not laid down in the Law itself;
the Law allows for Sub-Developers or Master Developers, and individual plot and unit Purchasers to register their
contracts for purchase with the Department who will note the fact that the agreements have been entered into against
the title to the plot in question in the Register; the Department will maintain a special Register called
the “Register of Account Trustees” and in order to qualify as a Trustee the relevant institution or bank must
be “highly qualifi ed for the management of the Escrow Account”. A number of Dubai based banks including
Dubai Islamic Bank have announced that they have been licensed;
the Trustee will be obliged to provide regular updates to the Department on the operation of the Account
including movements of cash in and out of the Account and so forth; a retention of 5% to be held in respect of all Purchasers
money paid into the Escrow Account until 12 months after registration of the unit in the name of the
Purchaser, which can only happen following completion of the handover of the unit in question.
This maypresent some difficulties to individual developer soutside the “freehold areas”.

ENFORCEMENT PROVISIONS
The Department is tasked with policing of the Escrow Accounts and the performance of the Developers and
Trustees, and can request information on a regular basis and require any data to be provided to it that it deems
necessary. The Department can determine that a breach of the Law has occurred and will be responsible for notifying
the Trustee in writing of any violations and providing a period within which such violation can be rectified.
The Law provides for a series of penalties in relation to breaches of the Law including imprisonment and fi nes of
not less than AED 100,000, and these sanctions can be imposed not only on Developers or Trustees for breach of
the Law, but can extend to auditors, consultants and others involved in the development process who are knowingly
involved in breaches of the Law. In addition, a Developer can be subject to such penalties for transacting business
with a broker who is not registered as a property brokerwith the Department.

OTHER PROTECTION
Payments made into an Escrow Account are to be ring fenced in terms of insolvency and no attachment order
can be granted to creditors in respect of monies paid into an Escrow Account and therefore any funds within
the Account are protected against the insolvency of the Developer. In the event that the Developer is declared
bankrupt or fails to commence construction works within 6 months after obtaining approval of an off-plan sale,
or has its license revoked, or otherwise is in breach of the Law or any regulations issued under it, then the Developer
can be “de-registered” at the Department and prohibited from carrying out development activities in Dubai.

FURTHER DEVELOPMENTS
The Act provides for the Chairman of the Department to issue resolutions for the enforcement of the provisions
of the Law and it is envisaged that further enabling regulations/rules will be introduced by the Department.
In addition, of course, the Department are currently considering draft legislation to deal with ownership of
“horizontal property” or “strata/condominium laws” along with laws to deal with Homeowners Associations
in respect of Master Communities, and these laws are expected to be passed in the near future.

OUTLOOK
The Law is clearly a welcome addition to the real estate regulatory regime and further enhances Dubai reputation
as a jurisdiction in which it is safe and attractive to invest. The Ruler has shown the desire and willingness to regulate
the real estate market in Dubai, through the introduction of a system of compulsory registration, the widening of
the ownership of real estate to non-Nationals in designated areas, and now the introduction of protection for purchasers
in respect of off-plan sales.

Al Burj

Al Burj (The Tall Tower) project being planned by Nakheel will be 1,050 metres tall, comfortably exceeding the height of the rival Burj Dubai and making it the world’s tallest building.

Nakheel has kept the tower’s height a closely guarded secret as it waits for its more advanced rival, being developed by Emaar Properties, to reach its final height later this year. However, MEED has confirmed that design plans show the tower to be more than 1 kilometre tall, at 1,050 metres.

“At that height, the Tall Tower will definitely be taller than the Burj Dubai,” says a source working on the Burj Dubai. “Emaar has not announced the full height, but the contractors are working to plans for a 700-metre tower, and we expect its final height to be about 800 metres.”

The Burj Dubai became the world’s tallest building on 21 July, at 512 metres, and is due to be completed in 2008.

Designs for the Tall Tower show 228 floors, a four-level basement and one service sub-level – a total built-up area of 1.49 million square metres with 492,000 square metres of useable space. It will house offices, apartments and hotels. The top habitable floor will be at 850 metres, topped by a 200-metre central spire with a three-level function area and three service floors.

However, the location of the tower could change again. It was originally called Al-Burj and destined for Palm Jumeirah, before becoming part of the Dubai Waterfront scheme. Nakheel is still reviewing its options.

“The site has never been fixed and has always been under review in the context of the strategic plan for Dubai,” says a spokesperson for the developer.

According to industry sources, the tower has been forced to move to the Ibn Battuta mall area as it violated Department of Civil Aviation height restrictions because of its proximity to the new Dubai World Central airport at Jebel Ali. Nakheel denies this. “No height restrictions have been placed on Nakheel in the waterfront area by the Department of Civil Aviation,” says the spokesperson.

Tenders for the contract to build the tower are expected early in 2008. Meanwhile, several consultants and contractors are assisting Nakheel with the project. “No pre-construction contract has been awarded or considered at this stage,” says the spokesperson. “We are talking to large-scale contractors, including [Japan’s] Taisei Corporation, to assist with the buildability analysis of the early design of the superstructure.”

Prices of Dubai property could surge ahead in September by more than 20%, experts predict.

With fewer new developments being completed than expected, demand is still outstripping supply, and sharp price rises are expected as buyers return from their holidays, reports respected Middle East news service, AME Info.

Roy Bristow, New Skys marketing director says, “Last September alone, prices rose by up to 20% and this year they are expected to jump even higher – especially villas, which are in very short supply. Now is the ideal time to buy in Dubai and take advantage of the predicted boom.”

Among cost-effective New Skys Dubai properties are studio and one-bed apartments in Lakeside which start from just £50,500 and are perfect for investors.

The homes, in four striking towers in the popular International Media Production Zone, come with mortgages of up to 90% Loan To Value and an exit plan that allows you to flip - sell-on - after a 20% down payment.

Britons are among the top investors in Dubai, with more than 100,000 of us having bought homes there since 2002, says Dubai Property.
 
Fahad Al Gergawi, director of international relations for the leading real estate company, says, “British investors are keen to invest in Dubai because of its tax-free status, low crime rate, excellent services and enviable lifestyle. The sunny weather, of course, is another favourable factor in the equation, particularly when you take into account winters in the UK.

“A UK resident would ideally like to live in individual houses [attached or detached], preferably with a small garden for the children. It can be a beachfront or a unit in the desert - that's not really important. It's not where the unit is, but what the unit is.”

According to Dubai Properties, capital growth has risen 15-20% annually, out-performing most other countries.

The shortage of completed property has also led to a boost in rental income. Top Dubai property services company Asteco says rents for two-bed apartments jumped 18% in the first quarter after 14,000 new homes were completed against a forecast of 40,000.

Real estate experts see no quick fix


Dubai: There are no easy solutions to the problem of rising house rents as the economy continues to grow and more expatriates arrive in the country to take up new jobs, real estate experts said.

Dubai, which is facing an acute shortage of housing units, is planning to introduce long-term property lease contracts to keep a check on high rents.

Bermak Besharaty, chief executive of Al Mas Capital, a company that advises on real estate finance deals, said the housing demand and supply situation is a matter of demographics.

"As long as Dubai continues to be a source of jobs, there is going to be more and more influx of people," he said. According to a recent MEED report, Dubai will have 175,000 new residential units available by 2010, only six thousand less than the demand.

Besharaty said even the increasing supply of housing could be absorbed, without having a major impact on the high rents. The real estate market has also been distorted by excess in the high-end and luxury sector.

"There was some overbuilding in the luxury sector and not enough building in the middle and lower-income housing segments. More of the developers are realising that," Besharaty said.

Supply shortage

Delays in the completion of property projects have also resulted in a supply shortage of housing units.

Syed Ali Anwar, chief executive officer of 3D Venture Real Estate said such delays have deprived the market of 300,000 housing units.

"These projects have been delayed by at least one year and will only be ready by December 2009. Some are facing construction delays because of rising material costs, while others never got started after being announced," he said.

A projection done by his company sees a demand for 100,000 apartments at present. If the estimated number of people who will be coming to Dubai for jobs by 2009 is taken into consideration, then an additional 200,000 units will be required, he said.

According to Besharaty, the housing shortage has delayed corporate planning in many cases as companies cannot hire without paying for high rentals.

He said long-term contracts can be helpful in improving predictability for commercial leases.

"Currently it is difficult to do corporate planning. The long-term contracts will help this," he said.

In order for the system to work in cases of residential property, landlords can be protected by introducing an inflation clause that will allow rent increases proportionate to consumer price increases, Besharaty said.

However, without an inflation measurement tool in the UAE, it may be difficult to implement such a system.

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