The Dubai Roads and Transport Authority (RTA) has finalised plans to integrate water transport with the Dubai Metro and public buses, a senior official has said. "We will link water transport including water buses, ferries and traditional abras at four locations providing a smooth link for commuters to switch from one mode of transport to another suiting their journey plan," said Dr Khalid Al Zahed, Acting Chief Executive Officer (CEO) of the RTA's Marine Agency. The Marine Agency is responsible for developing water transport strategies in line with Dubai's plans to encourage more people to use public transport.

Deyaar Development PJSC yesterday announced continued strategic partnerships with leading banks to offer highly competitive financing options exclusively to Deyaar customers, including up to 90 per cent financing and repayment periods of up to 25 years. Subject to meeting the bank's credit approval requirements, customers will be able to obtain special financing schemes for properties developed by Deyaar, enabling them to benefit from favourable repayment terms and quicker approvals.

A standard property contract is coming to Dubai's real estate market, aiming to get rid of misleading small print. A senior official at Dubai Land Department said that having a basic contract would now become the norm and added that it would make it harder for buyers and developers to wriggle out of contracts or to add fine print to existing contracts. Emmad Eldin Farouq, senior legal advisor at the Dubai Land department, said it would also provide a clear, transparent guide to the rights of both the developer and the buyer. "The contract is ready and we are waiting for directions," said Farouq said. These standard contracts are going to be given for all properties.
“Luxury developers will see that their luxury units will turn into affordable ones by the law of economics,” insists Barmak Besharaty, Managing Director of Almas Capital. “When stock markets come down and companies lose money, affordable housing will occur in Dubai as well and we’ll be better off for it.”

"The contract will not be changed if it is completed or uncompleted. For any contractual agreement, it must be simple and clear and transparent. There is too much small print in contracts now. "In any contract, there is a chance a developer can add to it because different developments have different rules and regulations but the basic contract will stay the same," Mohammad Sultan Thani, assistant director-general of the Land department, said. Lawyers agree that the main points of the contract will remain the same but there will be room for other clauses. "The standard contract is for finished properties between the buyer and the seller, so the secondary market. But you can't legislate everything, you need an element of freedom in a contract. "So it will have standard terms in line with market norms and then any changes will go to a separate [section] to make it fair," Michael Lunjevich, partner at Hadef and Partners, said.
This would mean that parts of the Dubai Marina could suddenly be within reach of a mid-income investor’s expectations. One-bedroom townhouses in Jumeirah Village are already going for just over Dh800,000 and the two-beds at just over Dh1 million. A similar situation exists in the more established clusters such as The Springs and The Ranches (Al Reem). Where a typical three-bed townhouse went for Dh4 million at the peak of Dubai’s property upturn, there are now distress sales valued at around Dh1.6 million.
Some of these properties stay on the market for six weeks plus, which could mean that potential buyers believe the market has yet to sight a bottom. The point, however, is that it’s still worth double of what it was at the launch, profit is still being made.

• If the developer has completed 80 per cent of a project, it can keep the full amount paid and request purchaser to settle the remaining amount of the contract price. If not possible, it can request the property be sold at auction.
• If the developer has completed at least 60 per cent of project, it may revoke contract and deduct up to 40 per cent of the purchase price of the unit as stipulated in contract.
• If the developer has completed less than 60 per cent of project, it can revoke contract and deduct 25 per cent of purchase price as stipulated in contract.
• If construction has not yet started, the developer may revoke contract and deduct up to 30 per cen

This much has to be said about the on-going correction in Dubai’s realty marketplace — it could create affordable housing in freehold clusters where none existed before.
“Luxury developers will see that their luxury units will turn into affordable ones by the law of economics,” insists Barmak Besharaty, Managing Director of Almas Capital. “When stock markets come down and companies lose money, affordable housing will occur in Dubai as well and we’ll be better off for it.”

Widening scope

So what classifies as affordable housing? Up to now the obvious candidates were International City and Discovery Gardens, but with prices sliding all over town, the scope is widening. Besharaty suggests empty buildings in Jumeirah Lakes Towers could be reclassified in the affordable bracket, while Riad Kamal, Arabtec’s CEO, reckons that JBR should make for good affordable housing.
This would mean that parts of the Dubai Marina could suddenly be within reach of a mid-income investor’s expectations. One-bedroom townhouses in Jumeirah Village are already going for just over Dh800,000 and the two-beds at just over Dh1 million. A similar situation exists in the more established clusters such as The Springs and The Ranches (Al Reem). Where a typical three-bed townhouse went for Dh4 million at the peak of Dubai’s property upturn, there are now distress sales valued at around Dh1.6 million.
Some of these properties stay on the market for six weeks plus, which could mean that potential buyers believe the market has yet to sight a bottom. The point, however, is that it’s still worth double of what it was at the launch, profit is still being made.

Based on recent media reports, Abu Dhabi's Department of Municipal Affairs has already finalised a draft of the land registration law, mortgage and escrow account laws, and another one dealing with strata issues. This will be submitted to the government. The importance of the escrow law was discussed in the first part. The second part will focus on other laws which could be implemented in Abu Dhabi to better regulate the real estate sector.
Almost every real estate transaction includes the involvement of a broker, a person who procures the purchase or sale of land, acting as an intermediary between the seller and the buyer. Currently, Abu Dhabi does not have any legislation to regulate the profession.
In Dubai, Bylaw No (85) of 2006 regarding the Regulation of Real Estate Brokers' Register governs the profession. The law has proven beneficial, as it ensures that only qualified and trained individuals enter the profession, thereby reducing fraud, negligence and disputes.
Abu Dhabi should enact a similar law which should clearly provide for the minimum qualifications necessary to be registered as a broker, the process of registering, obligations, calculation and payment of fees, etc. It should also focus on the procedure for settlement of disputes between a broker and a purchaser/seller.
Like any other profession, brokers should also be governed by a code of ethics. The law should provide that a broker shall be responsible for any loss or damage suffered by any of the parties as a result of his acts through deception, fraud or breach of law. Penalties ranging from a simple warning to cancellation of the licence can be imposed, depending upon the gravity of the act.
Purchasing a property is not a simple matter for small investors. One of the major problems they face is obtaining proper financing. Property prices still remain high enough that small investors cannot afford to purchase without getting a mortgage. Abu Dhabi currently does not have any law regulating the mortgage of real estate.
In Dubai, Mortgage Law No. 14 of 2008 regulates the registration of mortgages with the Land Department. It adds further transparency and predictability to the mortgage market as it stipulates that the size of the loan, the repayment period and the value of the property must be registered with the Land Department.
The provisions of the said law apply to the mortgage of property and units as security for a debt. The mortgagee is a bank or an institution duly authorised and registered with the Central Bank for practicing property financing activities.

Rents in Dubai have eased significantly, according to the new calculator on Dubai's Real Estate Regulatory Authority (Rera) website.
The average rent for a studio in Dubai Marina is now Dh65,000 to Dh75,000. This figure was Dh80,000 to Dh90,000 in the first rent index, representing a difference of 17.6 per cent.
The calculator also shows that a one-bedroom apartment in the Greens now has an average rent of Dh90,000. Previously, it was Dh110,000 to Dh130,000, a change of Dh20,000 or 16.6 per cent. A two-bedroom apartment in Satwa was originally Dh75,000 to Dh110,000 but now is Dh70,000 to Dh110,000, meaning that not much changed.
Rera uploaded their rent calculator on their website last week but were due to release their long-awaited revised rental index in April.
However, it is not clear whether the rent calculator is a replacement.
Officials at Rera were unavailable for comment when contacted by Gulf News yesterday so the revised index remains as elusive as ever.
Mohammad Khalifa Bin Hammad, director of real estate relationship regulation at Rera predicted last month there would be an average rental drop of between 10 and 15 per cent.
However, Marwan Bin Galita, Rera's chief executive, said that this forecasted drop is only for select communities.

Multiple-entry visas for expatriate property owners, who meet the eligibility criteria, will be issued from June 1, officials announced on Monday.
Speaking at a press conference, Brigadier Nasser Al Awadhi Al Minhali, Acting Director-General of Naturalisation and Residency Department, said: "The multiple entry visas for expatriate property owners will be issued from June 1, based on the conditions stipulated by the ministerial decree issued on May 2."
In an unprecedented move, the Interior Minister issued a decree to better regulate the real estate sector by allowing expatriate property owners to obtain multiple entry visas valid for six months. Up until now, the regulations have been different in each emirate in the absence of federal regulation.
The decree, which applies across all emirates, aims at standardising the rules and stimulating the domestic economy, said Brigadier Al Minhali.
The investors will need to meet a set of requirements put forth by the authorities. According to the ruling, the property should be worth at least Dh1 million, it should be ready for the investor to move in, it should be wholly owned by the investor and the investor must have a monthly income no less than Dh10,000 or equivalent in foreign currencies.

Large UAE companies and banks are weathering the storm by reporting profits amid challenges, officials say. Almost all banks and companies have declared better than expected results, reflecting strong macro-economic fundamentals.
National Bank of Abu Dhabi (NBAD) on Monday posted a profit of Dh770 million for the first quarter of this year, while RAKbank yesterday reported 12 per cent increase in profits. First Gulf Bank on Sunday reported 11 per cent increase in first quarter profits to reach Dh750 million. Although most companies reported a decline in profits, none among the major players reported losses, so far.
While the net profits of the NBAD saw a 12 per cent drop from the same period the year before, the quarter to quarter increase was 57 per cent. Meanwhile the liquidity injection by the government has also helped the banks in facing the tight market condition and continuing lending which is going to help the economy move forward.

The time is nearing for developers to relinquish control. RERA is all set to enforce regulations related to the Strata Law and it will be over to the homeowners to manage their properties at what they consider to be the optimum price for these services.
It is one big step into the unknown, and the question being asked is whether they would stick with the developer owned property and related facility management companies or not?
“The Law will provide significant relief to property owners who will be free to form owners’ associations that will have their own elected management boards to set — in co-operation with RERA — their own budgets, service charges and select the provider of their choice,” says Peter Crogan, CEO of BCS Strata Management Services.
As homeowners will have the power to choose service providers, it is up to the developers to make sure that their property management companies and outsourced contractors stay in the game. They do have a ‘home advantage’ knowing their ‘turf’ inside out, but will this convince owners?
It will be a tough sell as the owners’ first reaction is likely to be to rid themselves of all forms of developer control.

A business breakfast that brought together over 150 property executives, legal advisors and investors came to the conclusion that Dubai's shaken property market is set to emerge from the property crisis stronger than before. New laws and regulations, both at the local and federal government level, will be announced in the next few months to help encourage transparency and establish the rights of property owners.
Jesse Downs, head of research at Landmark Advisory said, "Transparency is key to improving the local real estate market. The Dubai Land Department and RERA have both been working to improve transparency by publishing data and launching rental indexes. Of course, the market is changing rapidly so measures such as the rental indexes need to be updated frequently to significantly augment transparency."
Barmack Besharaty, managing director of Almas Capital pointed to property speculation and reliance on the off-plan sales as one of the main reasons for the problems in Dubai's market."Dubai will become a better place to live when the prices of property and levels of rent fall to affordable levels," he said.