Unique Real Estate Around the World

Only a minority of gift-givers have sufficient financial resources to give the gift of a home during this holiday season. An increasing number of family and friends, however, are helping first-time home buyers (and other potential home owners) with financing. People who step in to help loved ones with financing for homes are known as "angel investors." This term seems especially appropriate for investors who help relatives get into a home for the holidays. The expiry of the Federal First-Time Home Buyers' Credit, as well as the recent economic downturn, has caused more people to become "angel investors."

Habitat for Humanity

Yet in addition to affluent gift-givers and angel investors, a large percentage of the population are helping families receive the gift of a home. Internationally, people are supporting Habitat for Humanity – either through donations or with physical labor. Habitat For Humanity International (HFHI) (referred to usually as Habitat for Humanity or Habitat) has offices in five major areas around the world. They operate in the US and Canada, Europe and Central Asia (Bratislava, Slovakia); Latin America and the Caribbean (San Jose, Costa Rica), Africa and the Middle East (in Pretoria, South Africa), as well as Asia-Pacific (Bangkok, Thailand).

The operations of the organization in each main area are managed by a national office. Community Habitat offices act as partners with Habitat for Humanity International. The national and local offices handle the selection of the building site and partner family, fundraising, house construction, and mortgage servicing.

Habitat is a non-governmental and non-profit organization devoted to building affordable housing for people who need a helping hand. The homes are built with volunteer labor and are not sold for profit. Guidelines for the program may vary slightly around the world. For example, certain locations outside the US charge interest as a measure of protection against inflation.

Habitat for Humanity is a prestigious organization. In 1984, former U.S. President Jimmy Carter, and his wife Rosalynn Carter, got involved in Habitat and greatly raised the organization's profile. In 1996, U.S. President Bill Clinton awarded its founder, Millard Fuller, the nation’s highest civilian honor.

By 2010, Habitat for Humanity had built more than 350,000 houses providing shelter for over 1.75 million people in more than 5 continents and 3,000 communities worldwide. The organization does not just provide a handout. The program offers assistance but allows recipients to maintain their dignity and play an active part in the process.

Usually, new homeowners are expected to put 'sweat equity' into their own or other Habitat homes .Any mortgage payments from homeowners are deposited into a locally-administered "Fund for Humanity." The proceeds go towards future construction.

Holiday Homes

Nothing could be better than giving or receiving a holiday home. Remember that you can donate your money, time, or effort to a local project .Read about a few of the latest new Habitat home owners during this 2010 holiday season.

Habitat finishes two homes just in time for Christmas

Habitat delivers holiday home

Family gets new home for holiday

Have You Ever Helped Or Benefited From The Habitat Program?

Image courtesy of orangehabitat.org

If you could catch a flight from the closest major airport to Santa's home in the North Pole, you would have to depart from Fairbanks, Alaska. Yet if a trek to the Geographic North Pole sounds a bit daunting, you cam always visit the 'City of North Pole' – a ten-mile drive southeast of Fairbanks. Actually, the City of North Pole is a 'jolly good' alternative.

City of North Pole

This scenic town with more than 2,200 residents is known as the place "where the spirit of Christmas lives year round." The City of North Pole offers year-round Christmas decorations, seasonal street names, and light poles decked in a candy cane motif. There is even a Santa Claus Lane with three consecutive traffic circles within a quarter mile.

The world-famous Santa Claus House is the most popular attraction in this northern town. Even mailing a letter takes on a whole new meaning in this festive city. Mail postcards from the U.S. Post Office and your family and friends – young and old – will have the pleasure of receiving mail from North Pole, Alaska. (Holiday tip – Santa's zip code is 99705.)

No doubt, the City of North Pole is the perfect place for a holiday visit or stopover at any time of year. Yet this holiday town is a year round home for many people. A huge part of the town's claim to fame is its proximity to Santa Claus but the City of North Pole is also a primary energy center.

The city is home to two oil refineries and the largest electricity-producing generator in the Interior of Alaska. As well, the community is situated between two military bases - Ft. Wainwright and Eielson AFB. More than 30,000 people live in the 'Greater North Pole' area and this small town serves as the commercial hub in this northern region.

North Pole Home Sales

If you want to live near Santa year-round, expect to pay in the range of $221,000 (average listing price). A few area homes are selling in the $150,000 range (or even for lower prices). Other houses are priced closer to $300,000.

Within Santa's zip code (99705), last week's average listing price was $221,952 (a .3% increase). Actually, Santa's zip code was the most popular zip code for the second week before Christmas. That number is not a surprising statistic as Christmas nears and people want to get closer to Santa Claus.

Currently, there are 182 resale and new homes in North Pole listed at a real estate website. Even though the City of North Pole has a festive theme, the town cannot escape all the realities of modern life. Of course, foreclosures do not represent a significant percentage of North Pole home sales. Seven out of the 182 homes for sale, however, involved houses in pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

Yet whatever the roadblock, the City of North Pole, Alaska, seems to be conducive to keeping up one's spirits and, eventually, finding the right direction. After all, Santa has been doing that for centuries – and it is his neighborhood, too.

City of North Pole, Alaska

Would You Like To Live In North Pole, Alaska?

Within the US and Canada, sales of townhouses are 'going to town' (moving ahead in a vigorous manner). The term 'townhouse' has varied meanings in different countries. Historically in the UK and Ireland, 'townhouse' referred to the residence of a member of the aristocracy in a capital or major city. Famous townhouses are 10 Downing Street, residence of Prime Minister David Cameron, or Clarence House, home of the late Queen Elizabeth, the Queen Mother, and now the residence of Charles, Prince of Wales.

What are Townhouses?

Today in North America, this type of housing (either single-family or multiple-family dwellings) has a small "footprint." Usually, a townhouse is within minutes (either walking or with public transportation) of a city's business and industrial areas. Townhouses have been compared to a compromise between a condo and a regular home.

This housing category can include homes in the luxury market as well as more affordable houses. Superb examples of luxurious townhouses can be found in New York, Boston, Chicago, Toronto, Philadelphia, and San Francisco.

Why do People Buy Townhouses?

Part of the current appeal of townhouses is the wide range of prices. There is a townhouse for every budget and all age groups. Townhouses interest everyone from first-time buyers to empty-nesters who are downsizing to a smaller home. A first-time home buyer views a townhouse as an affordable alternative to a detached house. Building fees can cover issues such as snow removal, landscaping, or maintenance of the building's exterior.

Sometimes there is more demand for townhouses than can be supplied by the market. Wendy Jabusch, general manager of Hawthorne Homes, speaks about Canadian real estate and townhouses.

"Recent research shows that available townhome product -- homes started or available for pre-sale -- is only 14 per cent of the new construction market. The remaining 86 per cent of multi-family product is apartments," says Wendy Jabusch of Hawthorne Homes.

What does the Future Hold for Townhouses?

There has been a recent increase in townhouse developments. Construction starts of townhouses counted in at 250 in Calgary, Alberta during October, 2010. According to Canada Mortgage and Housing Corporation, that statistic showed the strongest month in 21 years for townhouse starts. Of course, there were fewer new townhouse constructions in 2009 because builders were working though units already in production.

Home buyers gravitate to townhouses for several reasons. Townhouses offer good value, attractive design, and lifestyle benefits. President and partner Tim Logel of Cardel Lifestyles says that he has found that townhouses have maintained their popularity since Cardel's first development in 2002. Logel is optimistic about townhouse sales in the coming year.

"I expect 2011 to be a strong year for townhome sales as affordability and the job market improves in Calgary," says Tim Logel of Cardel Lifestyles.

City homebuyers go to town

Manhattan Townhouses

New York City townhouses never lose their appeal. It is easier to get financing for a city townhouse than a NYC co-op. Generally, lenders look upon a Manhattan townhouse purchase as a wise investment. If you buy a townhouse as an investment, rental income can take care of the monthly mortgage payment.

Financing A Manhattan Townhouse

Are You Planning To Buy A Townhouse?

Image courtesy of activerain.com

Media and royal watchers were fascinated this week with Britain's most famous, newly-engaged couple – Prince William and Kate Middleton. Everyone was abuzz about the engagement ring and love-struck photos but then it was back to practical issues – but on a royal scale. As with all engaged couples, the question arose – where will the couple live to start their new life? Let us look at the homes at the center of this royal announcement.

At Home with Kate Middleton

Although the royal engagement was announced outside the Middletons' five-bedroom home in the village of Bucklebury, this house was not Kate's childhood home. Kate spent her childhood in a four-bedroom home, known as West View, in the neighboring Bradfield Southend – just two miles from her parent's present house. The Middletons moved in 1995 when Kate was 13; they had purchased the home in 1979.

Described as a "charming Victorian villa," Kate Middleton's childhood home was available for rent in 2009 at £1,250 per month. With "light, airy rooms and views of the countryside," this cozy home down a country lane was not expected to remain unoccupied for any length of time. The house has changed hands a couple of times since the Middletons moved to Bucklebury, Berkshire.

Yet Kate's home is much the same today as when she was growing up in West View. The house has been updated somewhat but the basic layout is the same. Kate's parents had built an extension to the ground floor and added a playroom. These additions can still be enjoyed by today's occupants.

Take a peek at Kate Middleton's childhood home.

At Home with Prince William and Kate Middleton

Apparently, the famous couple has been living together for several months on the island of Anglesey off the coast of Wales. Prince William is based at RAF Valley as a Sea King search and rescue pilot. They are reported to be renting a whitewashed farmhouse for £750 a month. Although there are no known plans for a move during the engagement period, there is a new home in the future for the happy couple.

Prince Charles is building a home for his first-born son and future daughter-in-law. It looks like Prince William and Kate Middleton will be starting their married life at the Harewood Park Estate in Herefordshire. The 900 acre estate is situated in prime countryside between Monmouth and Ross-on-Wye. The property in rural Herefordshire is close to the border with Wales as well as Highgrove House in Gloucestershire.

The estate will have a chapel as well as a 200 L rainwater reservoir and stables. The couple's new six bedroom 'starter' home is being built with every available eco-friendly, modern convenience. The 'green' features include a boiler using wood chips from trees on the estate, solar panels, reed-bed sewage system, and walls lined with insulating sheep’s wool.

Water-saving and low-energy appliances will be used throughout and the home will be topped off with a roof made from salvaged Welsh slate. A decision was made to downsize the home from almost 15,000 ft.² to approximately 8500 ft.² and, therefore, improve its energy efficiency. A green and modern home for a prince and his princess!

Prince William and Kate Middleton will live an ultra-green royal fairytale

Will The Royal Couple's Harewood Park Estate Start A 'Green' Trend?

Image courtesy of mirror.co.uk

If you are inside a NYC hotel, you are probably not alone – at least according to industry statistics. During 2010, Manhattan hotels have shown a 90% occupancy rate. At present, the NYC hotel market is favorable to buyer and sellers.

Favorable Market

This market is not expected to lose favor in the near future. Manhattan hopes to welcome more than 46,000,000 visitors by the end of the current year. By 2012, New York City will be entertaining over 50,000,000 guests per year. There was never a better time to be part of the Manhattan hotel industry.

Revenue per available room (RevPAR) in New York City has increased by 7.6% to $135. Yet the national average fell 2% to reach fifty dollars. Major players, as well as smaller entities, are recognizing the potential of the NYC hotel industry.

Recently, the Sheraton opened Brooklyn's first major hotel In 12 years. Hyatt Hotels and Resorts opened Andaz at 485 Fifth Avenue in September 2010. Actually, more than 31 new hotels are expected to appear on the Manhattan skyline between 2010-2011.

Luxury Market

The NYC hotel market is going non-stop with new development and properties changing hands. Even the luxury market is in high demand. Almost 100 transactions during 2010 were for luxury properties with a purchase price of more than $10,000,000.

Of course, all hotel buyers in New York City must be able to handle a high price tag. The 760-room Doubletree Metropolitan is selling for $400,000 per room. The W-New York on East 39th Street sold for $300,000 a room earlier in the year.

Goldman selling 3 NYC hotels

Corporate and Leisure Travelers

Investors are willing to take the chance on NYC hotels. Manhattan is expecting many more leisure and business travelers in the coming months. In particular, the corporate traveler is driving this activity. As a growing number of companies regain strength and revitalize their corporate travel practices, the NYC hotel market will reap the benefits. Regardless, New York City holds such an appeal that vacationers will continue to fill Manhattan hotels.

Inside NYC Hotels

Want a peek inside a New York City hotel? Besides the Andaz at 485 Fifth Avenue, another Andaz opened on 75 Wall Street in January 2010. The boutique-style rooms begin at $220 and offer a Hudson Valley-sourced restaurant, bar emphasizing 'Pullman-style mixed-at-your-table' cocktails, and spa allowing guests to order services in 15-minute increments.

Multi-sized bamboo panels in the lobby mirror the old lock boxes of Wall Street. The Andaz is a condominium/hotel with condos on its upper floors. The smallest rooms in the hotel start at 345-square feet. They have window seats and 11-foot high ceilings as well as double-paned glass with automated sleep shutters. In addition, guests can enjoy 42-inch LCD TVs and iPod docking stations.

The downstairs space houses the gym and casual conference rooms with their own kitchen facilities and espresso machines. The most lavish rooms feature peek-a-boo tubs and rotating closets. Restaurant lamps resemble pearls. Arching woodcuts in the ceiling display watermark detailing from the dollar bill. It looks like dollar bills will be changing hands fro a long time to come in the NYC hotel industry.

Andaz Wall Street opens with rooms from $220

Are You Planning A Stay In A New York City Hotel?

Image courtesy of ny.curbed.com

It's all over the news this week – even on the international scene. This company is coming out of bankruptcy; that company has started to make a profit. What's 'on the go' in business news?

Out of Bankruptcy

General Growth Properties Inc., the second-largest U.S. mall owner, just came out of the biggest real estate bankruptcy in the country’s history. This company was recovering from their bankruptcy filed in April 2009 – and a huge debt of $27 billion. They had been unable to refinance because of the collapse of the commercial mortgage-backed securities market and overall economic downturn.

General Growth Properties Inc. had an extensive restructuring plan. The company provided full recovery for creditors as well as recovery for shareholders. Usually, shareholders are not included in a bankruptcy reorganization.

In the initial restructuring stage, they concentrated on restructuring a mortgage debt of $15 billion tied to 140 properties. Of course, restructuring comes with a cost. The company lost $29.3 million in core funds from operations during the 2010 third quarter compared to a profit of $88.9 million last year. The culprit was restructuring costs. General Growth owns and operates over 183 retail centers in 43 states.

General Growth Exits Biggest Real Estate Bankruptcy

Reporting a Profit

Starwood Property Trust Inc., a significant real estate player, has reported a third-quarter profit. The company raised its dividend as it bought loans in the recent commercial property downturn. Keep in mind that Starwood reported a 2009 loss of $1.9 million. Starwood has made $203 million in new investments during the third quarter including commercial mortgage-backed securities tied to hotels, apartments, shopping centers, offices, and warehouses.

Starwood Property Reports Profit on Real Estate Loans, Increases Dividend

Global Scene

Canada

According to commercial real estate brokerage Avison Young, commercial real estate is rebounding in Canada. The value of commercial property deals is expected to reach $16 billion in 2010. By September, the year's transactions had exceeded 2009 numbers with more than $12 million of commercial real estate in the mix.

Actually, the 2010 figures are a 57% increase over a nine-month period in 2009. Of course, the numbers are not as favorable as in 2007 and 2008. Yet the figures are encouraging for the coming months in commercial real estate. Toronto was the most active market YTD (year to date).

"This is a significant improvement over the $11 billion worth of investment sale transactions completed in 2009, but is still shy of the $21 billion recorded in 2008 and the $30 billion in properties that changed hands at the peak of the market in 2007," says Bill Argeropoulos, Avison Young's Director of Research.

Commercial real estate rebounds

Philippines

The Villar-led property developer, Vista Land & Lifescapes Inc., grew its nine-month net profit by 36% to P2.17 billion. The growth was attributed in great part to revenues from its affordable housing business. Vista Land is expected to achieve its P20-billion sales target for this year.

Sales levels increased by 29% in the first three quarters in 2010. Vista Land senior vice president, Ricardo Tan Jr., says that consumers have confidence in the market. Vista is the holding company of five business units catering to different market segments.

"We expect to see continued strong sales performance in the fourth quarter as we have launched more projects over the last few months. We should comfortably exceed our sales target for the year by just repeating our third-quarter performance," says Vista Land senior vice president Ricardo Tan Jr.

Villar real estate company reports P2-B profit

Are Things Looking Up For You?

Image courtesy of activerain.com

So, you don't believe in haunted houses? Well, they exist – everywhere! Houses that are 'haunted' by a horrific event in their past or a horrible rumour or even an association with horror!

Haunted Houses

In fact, maybe you are living in a 'haunted' house at this moment. The chilling reality is that you don't know for certain about every event in your home's history. Even if you have a new home, stories abound about deceased and disgruntled land owners that paid a ghostly visit to current owners of their previously-held property.

All in all, it adds up to a scary situation. Maybe you think this haunted house talk is just Irish malarkey. After all, Erin's Isle has more than its fair share of tales of haunted castles.

Creepy Irish Castles and Houses

Haunted Laws

If you think that haunted houses are a joke, think again! There are actual state laws about haunted homes. The housing regulations in various US states refer directly to the 'haunted' issue. Other states address 'stigmatized' property. These states point out that the 'haunted' reputation is decided on a case-by-case basis. The law's attention to haunted houses is not a figment of an overactive imagination. Haunted houses are 'real' – at least according to the state.

Since 1991, New York's housing law states that hauntings must be disclosed to potential home buyers. Now that official recognition lends more credibility to the 'haunted' factor. Law makers acknowledged that a 'haunting' past affects a home's value – usually in a negative manner. But not always!

Haunted Buyers

It depends on whether horror fascinates or horrifies you. For example, consider the summer sale of a 1909 farmhouse (home of three gruesome murders) in Fort Wayne, Indiana. As it turns out, the murders were the main attraction for one group of interested buyers. It is possible to sell a haunted house.

How to sell a haunted house

Haunted Deal

Yet not every home buyer feels so great about ghosts. Thus, the reason for the New York housing law about creepy homes. The 1991 ruling came into 'being' because of a few odd beings – poltergeists to be exact – who occupied a 5000 sq ft Victorian home in Nyack, New York.

A potential purchaser made a down payment without knowing about the poltergeists lurking in the dark corners. Home owner, Helen Ackley, had come clean about their existence. She had even written about her ghosts but she didn't note their tenancy on the sales contract. People, you have to include all poltergeists in the sales contact. Gee, that's a given!

But apparently, this home buyer didn't feel at all friendly towards ghosts. He demanded the return of his down payment. The present New York housing law about ghosts resulted from that court action. As an owner of a haunted house, you have to 'own' up to it.

Haunted Value

And who knows, your home's value could go through the roof. Having ghosts come out of your walls might sell your home. It depends on who's looking and 'whoever is lurking' might not turn out to be just a nuisance. Your live-in ghost might get you a great price for your haunted house. Happy Halloween!

4 Haunted Houses And What They're Worth

Do You Live In A Haunted House?

You probably know someone who has moved to Washington. Of course, it is not surprising that so many people would make the move. The city is the nation's capital – the heart of the country.

Granted, many people just make a temporary move to Washington. The politicians account for many 'back and forth' moves. Even a few politicians choose to stay on in Washington after politics. Washington attracts political types – and not just from the US – and not even just for politics.

Canadian Buyers

Washington has just attracted the attention of the Canada Pension Plan Investment Board (CPPIB) – not for its policies – but for its real estate. The CPPIB invests funds that are not required for immediate use by the Canadian Pension Plan. The board is planning to buy two impressive office buildings in Washington, D.C.

They describe the market as being "more attractive" than a few years ago – and they are not referring to the state of the property. The "very, very, attractive" prices are the reason for the board's interest in Washington. The CPPIB is planning to pay $237 million for a 45 percent stake in the two properties - 1299 Pennsylvania Avenue (the Warner Building) and 1101 17th Street NW.

The figure includes $91 million in equity and $146 million of the outstanding mortgage debt. This Canadian board is making an expensive purchase – even if it is more attractive than before. Peter Ballon, vice-president and head of the Americas division of CPPIB's real estate investments, agrees that it is a whopping sum. Yet he thinks that now is a good time to invest in key markets like Washington. New York and Los Angeles have also been identified as key markets because they are more stable than the rest of the nation.

In case you are wondering, yes, the CPPIB has heard about the damage from the recession. They know about the foreclosures and unemployment. Ballon explains the board's reasoning.

"We are not concerned by the debt market in the U.S. if anything we see it as an opportunity because we are typically an equity purchaser and do not need debt to make acquisitions," says Peter Ballon, vice-president and head of the Americas division of CPPIB's real estate investments.

High Stakes

Now, of course, the CPPIB is not doing all this on their own. The board has Vornado Realty Trust (NYSE:VNO) as a partner in this latest acquisition. Vornado Realty Trust owns 55% of this venture. No doubt, it is quite the venture – with an implied value of US$526 million. Vornado will manage and lease both buildings.

High Style

Last May, the CPPIB announced that it would pay US$663 million to buy a 45 percent stake in two Manhattan office properties including a 51-storey skyscraper in the Rockefeller Centre complex. If you wonder why a Canadian board would not seek out investments in Canada, the answer is – a smaller market. The CPPIB is looking to invest and Washington seems like a fine place to make a deal. It looks like Canadian business is moving into US real estate – in high style.

CPPIB seizes on low real estate prices in U.S. to buy stake in D.C. buildings

Are You Planning To Invest In US Property?

Ah, home sweet home! Make that home 'small' home for an increasing number of home builders and home buyers. House construction is seeing smaller and less expensive homes because builders are not getting the same price as before for expansive, upscale properties. A few builders claim that they are not making back the construction costs.

Shrinking Size

Some builders are getting rid of homes at a loss and concentrating instead on the business of renovation. Although in uncertain economic times, neither one is a safe bet. Everything has experienced a decrease in this economy (in certain areas more than others). Everything from house appraisals to new homes to house prices is seeing a decline – and now houses are also shrinking in size.

Part of the decision to go 'smaller' is fuelled by varied events that have undermined people's confidence in the market. Such issues as foreclosure rates, flawed foreclosures, lending issues, and more, are causing a build up of anxiety among potential home buyers. Of course, home builders share their anxiety.

"It's slowing the recovery of new construction. It's sapping confidence," says Robert Filka, CEO of the Michigan Association of Home Builders

In a certain Michigan suburb, a 3,600-square-foot home with 10' ceilings, is selling at a loss for the builder at $699,000. In 2008, that same home was priced at $875,000. Within the past decade, homes in that neighborhood had sold for $2,000,000. Times have changed and builders are changing with them.

No Luxury

With unpredictable appraisals that can come in even $80,000 less than expected, luxury homes can be a problem. Appraisers have to factor in recent sales in the neighborhood. At present, neighborhood sales can include anything from a short sale to a foreclosure.

As well, home buyers are often asked for higher down payments (even up to 25%). Luxury homes may start looking less and less appealing to home buyers. Builders who have noticed that trend are opting to construct smaller homes. Maybe a less expensive home will not seem as intimidating to the potential home buyer.

Hard times force home builders to think small

Downsizing

Some people are adamant about the benefit of small houses. Cost-effectiveness, smaller mortgages, and a simpler lifestyle are a few reasons that people give for choosing smaller and less expensive homes. Even environmental reasons play into the desire for smaller homes. They use fewer resources in building and for maintenance.

Of course, buying a 'too small' home is not a wise move. A home can be as small as anything - as long as it suits your needs. If a home does not have sufficient space, it will not work for a growing family.

Perfect Fit

Yet if the size suits you, a small home might be the right choice. People have found 'small home' ownership to be an exhilarating experience. It frees up savings for travel and it frees up the precious commodity of time.

'Small home' ownership means less time spent cleaning and fewer hours required for maintenance. Smaller homes allow you to have more quality time with family and friends. Maybe though not everyone will want to go as 'small' as this home builder.

Take a look at - World's Smallest House!

Have You Been Dreaming of Building a Small House?

Would A Small Home Suit Your Needs?

Many things look good in Dubai – at least, according to tourist statistics. Dubai is the one of the most visited cities in the world. As one of the seven United Arab Emirates (UAE), Dubai is expecting to accommodate 15 million tourists by 2015.

Looking Good

Everything looked promising today as Cityscape Global 2010 (the world’s largest business-to-business real estate investment and development event) opened in Dubai. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, presided over the opening ceremony of Cityscape Global at the Dubai World Trade Centre. The city has hosted this event for the past nine years. This four-day show spotlights emerging trends around the globe.

No Problems

Within the next two years, residential property prices are expected to stabilize in Dubai. Once again, investors are taking a serious look at the city's real estate. A leading consultant firm does not foresee any problems with the Dubai market.

“As long as the property supply doesn’t surpass the demand too much, we should see a stabilization of Dubai’s residential property prices within the next two to three years," explains a major consultant firm.

New Developments

By the end of 2011, Dubai is expected to see 50,000 new residential developments. Maybe the scale of development will not reach that exact number. Yet developments are now in the works that were on hold. As well, many buyers say that they plan to stay in Dubai for at least 3-5 years. Despite the downward trend in the past six months, things are looking up for this United Arab Emirate. An industry leader offered an explanation for the decline in Dubai residential rentals and sales in recent months.

"This downturn probably was mainly due to the holy month of Ramadan and summer vacations as well as buyers adopting a wait-and-see attitude. Many of the prudent investors were in anticipation that the prices would fall further, or the mortgage rates would get cheaper,” said a top consultant.

Good News

Banks are lowering mortgage rates in Dubai – sometimes to 5.99 per cent. The good news for Dubai buyers is reflected in pockets elsewhere around the world but Dubai is the darling in development at this time. Recently, there have been major encouraging announcements including today's news that the Real Estate Regulatory Agency would work with banks to raise up to $1.36 billion to finish 48 developments.

Emerging Trend

The truth is that mature economies are finding it difficult in recent years. Heavy debt is always a major issue – whether you are an individual or a mature economy. Developing economies are not burdened with that degree of debt and, therefore, they can grow at a faster rate. Rapid growth means higher returns and that fact is not lost on investors who are eyeing the Dubai market.

Dubai's residential sector in recovery mode

Eyeing Dubai

The Dubai real estate market looks attractive to investors and, no doubt, the city is a favorite with tourists. Yet the best measure of a city is how it cares for and nurtures its residents so that 'everyone' can live a productive and pleasant life within its boundaries.

Do You Have Your Eye On Dubai?