Dubai Real Estate And Property

Well first up is the news that Dubai real estate developers are now starting to openly admit that all is not well in the real estate market! What really! I know a shocking revelation, but it was only 6 months ago developers were trying to paint a picture of a rosy property market, that would recover in the 1st quarter of 2009, and than no job cuts would be necessary etc. You get the general idea. But now, they seem to have actually come around to the fact the fact the market is in a bad state. Whereas previously developers would dart around questions to do with development progress and property demand, now they are responding more honestly to questions, and are giving more information on project problems and setbacks. This enhanced communication can only be a good thing for the market where we are seeing a lof of Dubai distress villas sales and apartments.Also this week, one of the parties involved in the construction of the Burj Al Alam, the Fortune Group, has come out and said the project is on course for a 2012 completion date. Once completed, the tower will be a rather substantial 510 meters tall, with some 108 floors, making it the tallest commercial tower in Dubai. It will also feature 27 floors of serviced apartments and a high end hotel. Completion was originally planned for 2010, but construction work has currently been places on temporary hold. Hopefully come 2012 Dubai can enjoy the towers beautiful architecture.And finally it seems land costs in Dubai have decreased substantially recently. With land prices typically accounting for 25% of a projects total costs, this should see large savings made by developers. The Dubai Real Estate Regulatory Agency (RERA) has recently introduced changes when it comes to purchasing land, with developers now forced to own and pay for 100% of the land if they want to sell of plan property. Add to this legislation that has curbed speculative land purchases, and the result is falling land costs, in many areas to 2005 prices, and in some areas prices have even fallen below the original asking price. With prices still expected to fall yet further, now looks like a prime time to invest in Dubai land plots.