A city profile: Al Ain - The Garden City of the Gulf

Al Ain is the largest city in the Eastern Region of the Emirate of Abu Dhabi, is the home of UAE University and two major flight academies, is connected with excellent roads and highways to other cities of the Emirates, especially to Abu Dhabi (150 km east) and Dubai/Sharjah (140 km southeast) and borders with Omani town Buraimi as its twin city (Muscat is only few hours drive away).

In 1997 the City was placed second in the world wide competition “Nations in Bloom” in its category for communities of 50,000 to 300,000 population for achievements in landscaping, heritage management, environmental practices and its future planning.

Population and trends:

The population of Al-Ain has grown over 400,000 mark and had reached 341,300 in 1998 from 171,000 in 1985 and 120,000 in 1980 (The Planning Department of Al-Ain). The development and urbanization process has gone through a well thought-out master plan.

Physical characteristics of the city are dominated by major road and street network with roundabouts; horizontal expansion (building heights restricted to max. 4 stories); extensive vegetation and landscape; public gardens and distinctive existence of oasis within the urban fabrics.

Income groups:
According to a survey of visitors to the annual Al-Ain festival, 30% earn Dhs 6-10,000 or more and 33% Dh 3-6000 (Al-Ain Tourism Festival Survey 2003) that shows a strong middle class with fair to good buying power.

Al-Ain has a large industrial area with medium to large size industries and is surrounded by agriculture, dates farming and water and milk plants. It uses the ancient but efficient non-mechanized “falaj” irrigation systems that developed into major date plantations in a modern day Al-Ain.

Economic growth:
The following news item, published in Khaleej Times (Dubai, May 18, 2004) reflects the tremendous growth witnessed by the city:

Al Ain, the garden city of the Gulf, is witnessing a tremendous boom in different economic sectors and social activities.

According to the Annual Statistical Book of the Al Ain Municipality and Town Planning Department, in 2002 the Department has issued 1062 new construction licenses (874 in 2001), only 53 of them governmental, 12902 trade licenses including 2556 for restaurants (2904 in 2001), and to maintain its position as the ‘bridesmaid of the world cities’, the number of parks increased to 26, covering an area of 4,138780 square meters, and raised the number of date palm trees to 1,04865.

Since the piece was written, a flight academy and a new large shopping mall has been added to the city besides a large number of small and middle size businesses and numerous housing compounds and new buildings, plus a five star Sheraton Hotel is also under construction.

Source: http://www.alaintimesuae.com/

Prices Projections for This Summer

Article Source: www.ameinfo.com

High local inflation and low US interest rates are fuelling the market with negative real interest rates. That economic force is not away for summer. In this environment anybody leaving their property purchase until this autumn is likely to find that prices have shifted at least another 10% higher over the summer months.

All markets have momentum and the momentum in the Dubai real estate market has grown in 2008 with the rate of advance in prices accelerating to a level not seen since 2004 and the early days of the boom. With prices up 10%-15% in April-May they are not about to slow down very much over the summer.

Indeed, it is perfectly possible for prices to carry on rising despite a slowdown in transactions. In fact, this is a reason for increases: Sellers are keeping their property off the market in anticipation of rising prices and therefore creating a shortage that, not surprisingly, produces higher prices.

Autumn sales

It is a debatable point whether property owners returning from their summer vacations will suddenly decide to sell. There will always be those who wish to cash-out because they are going home or starting a business.

But those with a long-term investment commitment to the Dubai property market, and this is a growing market for owner-occupiers and landlords, then sitting on an asset that is rising in value makes obvious sense.

There is an argument that as capital values rise then rental yields are falling - because rental rises may not keep up with capital appreciation.

But then market reports suggest 20% annual rental inflation - which is hardly going to put off landlords - and yields have to be compared to interest rates, which at 2% on deposit accounts are not an attractive alternative, especially with inflation in the high teens.

Bull points

No, as this column has been arguing for some months the case for buying Dubai real estate - to save on rent, to protect capital against inflation, to participate in a boom - has got stronger not weaker. Expect a shortage of completed property for sale to be one of the biggest drivers of house prices this autumn, as well as over the summer.

The discussion always then comes back to 'how high can prices go?', 'when will the boom end?' This topic has become a little tired over the past six years since Dubai first launched its universal freehold property sales.

But what you can be quite confident about is that the boom is far from over yet, as the economic drivers to take it still higher are in place.

Article Source: www.ameinfo.com

Are You Systematic?

Do You Have a Plan for the Things That Matter?

There are a few things agents should have figured out and locked in; marketing, referral procedures, and phone sales training. The keys to these are figuring out what works, and being systematic about doing them the same way EVERY time.

Let's focus on one skill (referral procedures), and make a few assumptions. Our assumptions are that you will close 18 units this year at an average sale price of $300,000, with an average gross commission of $6000. Not too shabby, but let me paint a picture of the possibilities. Our chosen skill area for this exercise is referral procedures. Everyone knows they should ask for referrals, but most don't because they DON'T KNOW HOW! Others do ask, but not consistently. What is most important about asking? Consistency and timing- let people know you work by referral, and ask when you have given them what they want.

Now let's monetize this.

All agents fall into three categories:

1. Inactive
2. Inconsistent
3. Consistent

Inactive- You do not ask for referrals or have a marketing plan to do so. Let's say you made a commitment to yourself to ask every client if they have a friend or co-worker that is buying or selling in the next 90 days (notice I didn't say ask if they know ANYONE; there is a reason for that). You follow through this year, and of those 18 clients, 6 refer you a solid lead. Of those six, three buy or sell with you. That is an extra $18,000 in your pocket just for being consistent. It costs you nothing.

Ras Al Khaimah - The New Dubai

When most people think of the United Arab Emirates, Dubai right away comes to brain, but according to overseas property specialists, another Emirate is on course to imitate Dubai's achievement. Just forty five minutes drive north of Dubai, Ras Al Khaimah (RAK) is rising in popularity due to its low land costs, tax reimbursement, charming scenery and commutable distance to Dubai.

Economic intensification and diversification of the Emirate is touching at an extremely speedy pace with the Ras Al Khaimah Speculation Authority (RAKIA) alone having invested over $408m in local projects and has paying attention over $950m in outside investment since 2004. Since 2000, some $25 billion of household and overseas investment has poured into RAK; but unlike the neighboring emirates, RAK is not oil dependent so its industries are here to stay.

Concrete Homes - Your Fortress in a Natural Disaster

If the area you lived in was subject to earthquakes, insect plague and wildfires, and you could live in a type of housing that could endure all those perils, why wouldn't you? Real homes have an astonishing confrontation to all of the above and are usually used in Dubai and other storm ridden locations, but their reputation hasn't spread to the west coast.

Structural engineer, George Easton describes concrete building alike to assembling Lego blocks. "The "blocks" are polystyrene forms, called insulated concrete forms, into which the concrete is poured. The forms then are left in place to serve as lagging and the support for stucco on the external or drywall on the interior."

The walls can provide up to an R-50 energy rating and require approximately 44 percent less energy to heat and 32 percent less energy to cool compared to a customary wood home.

Dubai’s Residential Realty on the Go up, Price Wise and Or else

In the last couple of years, Dubai real estate, has witnessed various boost in residential assets values. The major transactional areas include Abu Dhabi, Sharjah, Fujarah

Apartments have always been the preferred option vis-à-vis bungalows in Dubai. "Apartments absolutely come cheaper and resident can benefit of all conveniences and amenities in a huge multifaceted." A lot of projects are coming to Dubai wherein the apartments and bungalows are part of an included rural community. For more information visit Dubai Property

Real Estate Opportunities - Where to Earn

If you are on the procedure of investing your money for a business, settling on a real estate asset is the best alternative for you to take. Real estate properties offer big bucks and opportunities that may come in a usual basis. This means that being an agent or a realtor isn't easy.

The most common question addressed by most people towards the real estate business would be whether a person can make and earn a fair quantity of money out of this business. The answer is a as the crow flies yes since there are areas of this business which grows eventually. The payment you get monthly can be placed on other payment transactions such as mortgages and whatnot. The rest of the payment you get from tenants can go directly to your own pocket or bank account. Sometimes, the properties in the market will depreciate but as expected, it will also rise in due time. This is where your skill of holding on to potential properties should be applied.