Real Estate

Kleindienst Group has become the first developer to start construction on The World islands in Dubai. The developer of The Heart of Europe project has officially broken ground on Germany Island with specialist engineering contractor Foundation Construction Group Limited (FCG) commencing vibro-compaction work late yesterday.

A project milestone not only for the Kleindienst Group but for the entire World archipelago, Chief Executive Josef Kleindienst was joined by Nakheel Executive Chairman H.E. Sultan Ahmed bin Sulayem for the official ground breaking ceremony.

Construction has started just one week after FCG’s appointment, confirming earlier claims by Kleindienst that offshore logistical requirements of developing on The World will not hinder progress.

“Exactly two months ago we launched Germany Island with a clear promise to start construction in Q1 of 2010. I am very proud to say we are delivering on that promise. Today FCG started critical foundation stabilisation work. By the end of this year you will start to see the first villas on The World, one of which will be my own home,” said Kleindienst.

“While we are the first developer to begin construction, we are aware of several more that are not far behind us. The World project is very real, it is taking shape as we speak and I firmly believe that when complete it will become the most expensive property in the emirate of Dubai,” he added.

Commenting on the Kleindienst ground breaking, H.E. Sultan Ahmed bin Sulayem said, “On behalf of Nakheel and everyone involved in the creation of The World, I would like to congratulate Mr Kleindienst on this important milestone. We look forward to the successful development of Germany Island into another world class destination in Dubai.”

The soil improvement operation, called ‘vibro-compaction’, involves the use of electric depth vibrators that mechanically agitate and lock the sand particles together down to seabed level (a depth of 18 – 20 metres), to ensure that all construction on the island is stable and sound. The technique is recognised internationally and is a standard procedure in the densification of reclaimed land.

Since The Heart of Europe launched in December 2009 Kleindienst Group has sold 11 villas on Germany Island.

The world’s tallest building opened tonight with a spectacular fireworks ceremony attended by thousands.

The final height of the Burj Khalifa was revealed to be 828 metres high, much higher than the 508 metres of the previous record holder, Taipei 101.

Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum renamed the skyscraper, known as the Burj Dubai throughout construction, after Sheikh Khalifa bin Zayed Al Nahayan, president of the UAE and ruler of the neighbouring emirate of Abu Dhabi.

The tower is home to over 1,000 luxury apartments, 49 floors of offices and the 160-room Armani hotel. Around 12,000 people are expected to live and work in the tower, which is part of the Downtown Burj Dubai development.

Construction of the Burj Khalifa began in 2004 and involved some 12,000 workers. The first residents are expected to begin moving into their apartments in February 2010. The Armani Hotel is scheduled to open a month later.

Maximum levels of rent increases in 2010 were announced yesterday.

According to a decree issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, if the rent for a property in 2009 was at market rate or up to 25 percent lower it cannot be increased

If the rent last year was between 26 and 35 percent less than market rate it can be increased by no more than 5 percent.

The full list of permitted increases is shown in the table below:

The law aims to ensure the stability in the Dubai property market.

Average rents are determined by the Real Estate Regulatory Authority (RERA).

UAE-based property developer and real estate company Deyaar has announced that it plans to reduce its workforce by 20 percent. The news was announced in a statement to the Dubai Financial Market today.

The number of job losses is thought to be around 60.

The Independent, a UK-based newspaper, reports today that Dubai’s Nakheel is about to slash 500 jobs.

The paper quotes the company response as, ‘Nakheel continues to evaluate its projects and commitments against market conditions and opportunities. In doing so, the company also evaluates its cost base and efficiencies.’

Nakheel Properties is a state-owned property developer. Major construction projects include the Palm Jumeirah, Palm Deira, Palm Jebel Ali, The World, Jumeirah Islands, Ibn Battuta Mall, Discovery Gardens, International City, and Al Furjan.

Dubai Properties Group has announced the handover of 2,287 units at The Executive Towers in Business Bay.

The Executive Towers development comprises 12 towers; 10 residential, one commercial, and one hotel tower. Four of the residential towers will be named East Heights 1-4, six will be called West Heights 1-6, while the commercial tower will be named Aspect Tower.

Residential properties at The Executive Towers include 1-4 bedroom apartments, studios, 4-bedroom terraces, and garden apartments.

The Dubai Silicon Oasis Authority has announced that 400 villas at the development are now available for sale or rent.

The properties concerned are located at Cedre Villas, a gated community within the technology park.

Muammar Al Katheeri, Chief Officer, Engineering Management at Dubai Silicon Oasis Authority, said ‘This landmark development comprises spectacular villas built with up to 40% more space than the available villas in the market, and are built in accordance with international quality standards that reflect the commitment of Dubai Silicon Oasis in creating an integrated community for those living and working in the region’s pioneering technology cluster.’

The National newspaper reported yesterday that investors in The Lagoons development have been offered alternative properties at Jumeirah Beach Residence by developers Sama Dubai.

Sama Dubai is a subsidiary company of the government-owned Dubai Holding group. Jumeirah Beach Residence was built by Dubai Properties, another subsidiary of Dubai Holding.

In August 2009 Dubai Holding merged the operation of Sama Dubai, Dubai Properties, and another company; Tatweer.

The Lagoons project is currently on hold.

Dubai Properties Group today announced the completion of a residential development in Mirdif.

Shorooq covers and area of 8 million square feet and features:

• 668 villas – 180 four bedroom villas, 252 three bedroom villas, and 236 two bedroom villas
• 1,428 apartments – 840 one bedroom apartments, 504 two bedroom apartments and 84 studios

The development offers easy access to Rashidiya Metro Station, Dubai International Airport, Uptown Mirdif, and the Mirdif City Centre shopping mall.

Salwan Property Management, a subsidiary company of Dubai Properties Group, will manage and lease properties at Shorooq.

Trident International Holdings have awarded the contract to build the Pentominium at Dubai Marina to Arabian Construction Company.

On completion the 124-floor building at Dubai Marina will be the world’s tallest residential building and the second tallest building in the world (after the Burj Dubai).

Construction is expected to take 2 years.