An informed perspective on property

Document Sample
An informed perspective on property Powered By Docstoc
					An informed perspective on property
Dubai is positioned as a leading
Arab and global city as the
government provides the growth
engine for the public.
Our Vision
Landmark Properties is Dubai’s leading real estate brokerage. The home
buying and property investing public comes to us because of our
reputation for providing authoritative, independent, and comprehensive
advice alongside a wide range of residential and commercial properties.

We continue to build on this reputation, and are investing in the
resources necessary to become the single most important source of
up-to-the-minute information on off-plan, new-build and secondary
market properties in the country.

As Dubai’s property market matures, however, we have been able to call
on our longstanding experience of international markets to identify new
areas where we see the potential for significant property growth. This
has enabled us to assist large-scale investors, government agencies
and developers in ways unparalleled in the marketplace.

Landmark Properties has thus established itself as a true full-service
property brokerage and consultancy. From the buying, selling and
leasing of individual properties, to the management of major
developments and bespoke real estate funds, Landmark Properties is
the first choice for any serious individual or organisation wishing to take
advantage of the Dubai property market’s phenomenal growth.

    Our Mission
    Our mission is to remain at the forefront of Dubai’s real estate market
    through the continued expansion of our in-house research capabilities,
    property marketing tools, and property valuation skills.

    At the same time, Landmark Properties continues to look for new
    opportunities in both the regional and international real estate markets.
    We leverage our blend of extensive international real estate experience to
    take advantage of these opportunities, and we forge close relationships
    with established local and international partners to realise it. Finally, we
    structure powerful financial and management techniques, with which we
    and our partners can make carefully planned investments.

    Together, these efforts will keep us on track for a projected revenue
    growth of more than 50% year-on-year.

Annual GDP growth in Dubai has averaged
14% per year over the last 30 years.
Source - IMF
    Our Services
    With a rapidly expanding network of over 70 experienced staff,
    Landmark Properties provides sophisticated real estate solutions to
    clients around the world. The company is based around four Divisions,
    which between them process annual transactions worth over US$500m:
    Freehold Residential Division
    Buyers and sellers of residential property – be they villas, town homes, apartments or
    penthouses; bulk or individual sales - are all dealt with by our Freehold Residential Division.
    The Division specialises in both off-plan residences and investments as well as secondary
    market sales.
    Residential Leasing Division
    With a large portfolio of properties on our books at any one time, those searching for an
    attractive home or short stay residence need look no further than Landmark Properties’
    Residential Leasing Division. With wide-ranging experience of leasing properties of all types,
    landlords can be rest assured that we can find the right tenant for each property.
    Commercial Division
    The Commercial Division handles retail and commercial office space, commercial land plots,
    warehousing and industrial space and labour accommodation – both for lease or for sale.
    Landlords and commercial clients have come to trust us to find the right lease or sale at the
    right price in extremely tight supply conditions.
    Project Sales & Marketing Division
    Landmark Properties is a specialist in the development, management, marketing and sale of
    projects for proven and established property developers. We have longstanding experience
    in assisting developers of both residential and commercial projects from inception to off-plan
    sales and delivery.

    We choose the single best project in a given area and do not take on competing projects.
    Buyers know that the correct due diligence has been completed by a team of property
    professionals, while developers receive the full weight of our backing, not just lip service.
    That is the Landmark Properties seal of approval.

Dubai is ranked first in global
population and employment growth.
Source - National Statistics Office
“The Dubai Strategic Plan
will open a new page in our
history after a successful
execution of the first one”
Source - Sheikh Mohammad Bin Rashid Al Maktoum
                                                                                                                The Dubai Phenomenon

The Dubai Phenomenon                                            Real GDP Growth:
In February 2007, Sheikh Mohammad Bin Rashid Al                 Dubai vs International Benchmarks (2000-2005)

Maktoum, Vice President of the UAE and Ruler of Dubai,
set out his plans for economic growth up to 2015.
                                                                Index                                              CAGR%

The reason he gave for launching the initiative - labeled the

Dubai Strategic Plan 2015 - was that Dubai had achieved                                                            Dubai 13

the targets set under the 2010 Strategic Plan (made public in
2000), in under half the anticipated time.

The 2010 Strategic Plan sought an increase in GDP to
US$30bn by 2010 - GDP hit the US$37bn-mark in 2005.

The original scheme also aimed to increase average income
                                                                                                                   China 9

per capita to US$23,000 by 2010 - In 2005 the average per
capita income had risen to US$31,000.
                                                                                                                   India 6
                                                                                                                   Ireland 5

The fact is that Dubai has witnessed 13% growth year-on-
year since 2000. That makes for a higher growth rate than
                                                                 120                                               Singapore 3
                                                                                                                   US 3
both India and China, presently the two most powerful
developing countries in the world.                               100

The new plan aims to achieve 11% annual growth year-on-
year to 2015, bringing GDP to US$108bn, with an increase
in per capita income to US$44,000. This translates into the
creation of 882,000 new jobs, bringing the emirate’s total
                                                                        2000   2001    2002      2003    2004   2005

number of employed to 1.73 million – and this is in a
population of over 2 million.

The Dubai economic phenomenon isn’t about to run out of
steam, and neither is the development of its burgeoning real
estate sector.

    The Dubai Real Estate Phenomenon

    Summary of the Latest Developments in the Freehold Market:                                                             The Dubai Real Estate Phenomenon
                                                                                                                           Since Sheikh Mohammad announced that freehold property
       Increased Signs of Maturity                                Demand Driven Growth                                     rights would be opened to foreign nationals in Dubai in
                                                                                                                           2002, the property market has witnessed spectacular growth.
      Less building on speculative basis                          Strong influx of expatriates, rising income levels       Huge new developments have been built and are occupied,
      Increased choice for consumers, with more supply            Off-plan sales, with some projects selling within a      more than doubling the size of the city, with many more to
      Customers more willing to hold off on purchases until
                                                                  few days                                                 come on-stream over the next five years.
      the project is partly or fully completed                    Buying grows as an alternative to leasing, with rental
      Recent relative stability of property prices
                                                                  yields higher than mortgage rates                        However, the landscape of property buying, selling, leasing
                                                                  Speculators’ share in investor (buyer) base decreases    and developing has changed in the last couple of years, as
      Rising sales in the secondary property market
                                                                                                                           the property market has become more mature. Inevitable
                                                                                                                           speculation has decreased significantly, buyers have become
                                                                                                                           more selective, developers are building on a firmer footing,
                                                        Freehold Market                                                    and property price rises have slowed after a period of
                                                                                                                           unsustainably high growth. Nevertheless, they continue to
      Availability of Mortgages                                   Legal Advances                                           rise at much higher rates than in almost any other market in
                                                                                                                           the world.
      Availability of debt financing fuels property boom          Designation of freehold zones for foreigners allows
                                                                  property registration and boosts investor confidence
      Number of mortgage providers increases                                                                               New ownership legislation, new real estate agency
      Greater variety of innovative products
                                                                  Grey areas remain                                        regulation, and the development of new mortgage vehicles

      Changing demographics of property buyers drives
                                                                  Condominium property law is soon to be finalized         by banks and finance houses are all placing increased
      increased activity                                          Brokers’ Law announced and expected to be                emphasis on investors and home buyers to take professional
      Gaps still exists in the mortgage financing industry
                                                                  instituted by year end                                   advice, rather than take a chance.

                                                                                                                           In this exciting new business climate, Landmark Properties
                                                                                                                           is firmly established as Dubai’s pre-eminent property
                                                                                                                           brokerage and consultancy provider.

The Soaring Residential Freehold Property Market                 Whether you are a property buyer or seller, Landmark
In Dubai, the unprecedented influx of expatriate residents       Properties has the detail you need to complete the best
has proved the most significant driver of demand for             possible deal.
freehold housing. Annual population growth has hovered
around an average of 10% for the last five years, and with a
suggested 882,000 new jobs likely to be created under the
Dubai Strategic Plan 2015, there is little chance of this
growth rate slacking - estimates point to a total population
of 1.9 million by 2010.                                                The Three Mass Developers Delivering
                                                                       c75% of 2007 Units’ Supply

This huge demand has consistently outpaced the speed at
which new residential properties have been completed. This
has kept prices high, and given foreign investors a major
incentive to invest not just in property from Dubai’s primary
developers - Nakheel, Emaar and Dubai Properties - but
also to undertake their own developments.

Estimates from EFG Hermes suggest that demand for
residential units is in the range of 40,000-50,000 per year,
with an increase of 270,000, to 530,000, by 2010.

Yet with such a large number of units coming onto the
market at any given time, and with so many different
locations, types and styles of property, successful investment             Nakheel 52%
remains a challenge. You need the right information to                     Emaar Properties 18%
choose between competing projects - information that has
                                                                           Dubai Properties 7%
                                                                           Others 23%
been carefully analysed and projected well into the future to
avoid nasty surprises – as well as access to properties that
have been carefully scrutinized prior to sale.

Landmark Properties’ Freehold Residential Division
specialises in providing exactly this kind of service.

     The Dubai Real Estate Phenomenon

     Rental Rate Increases for Areas                                            Forward Planning Key to the Maturing Rental                       There is even more reason to get in touch now. New
     Targeting the High End Segment*                                            Property Market                                                   methods of leasing are being introduced. With timeshare,
                                                                                                                                                  guaranteed rental (rent-back) and genuine short-term leases
                                                                                With demand for property exceeding supply, rents for              now available, let us help you make the right choice.
     60%                                                               Studio   residential homes increased by an average of 40% in 2005,
                                                                                and by 30% in 2006, with landlords and developers able to         An Analytical Approach to the Sophisticated
                                                                       1 BR
                                                                       2 BR
                                                                                demand double-digit increases across the UAE. These have          Commercial Market
     50%                                                               3 BR
                                                                                given property buyers a yield of between 8 and 12% when           Just as with the residential freehold market, demand for
                                                                                renting their units - way above the average of approximately      commercial space both from a buyer’s perspective and that

     30%                                                                        3% in Europe, and consistently above the home finance             of tenants, has considerably outstripped supply. As a result,
                                                                                rates regularly found in the UAE.                                 rents have grown by similarly dizzying proportions, giving
                                                                                                                                                  an excellent return on investment to owners, but creating a
                                                                                These stellar increases in rental rates are slowing. The          tough environment for business. According to EFG Hermes,
                                                                                Dubai Government introduced a rent-rise cap of 15% in             current rental yields now average 27%, a significant leap

                                                                                2006, lowered to 7% in 2007, though some unscrupulous             from the global average.
                                                                                landlords have surmounted this by refusing to renew lease
           Sheikh Zayed Road   The Greens   Dubai Marina   Burj Residence**

                                                                                contracts, thus effectively forcing tenants to negotiate higher   Yet with supply forecast to triple by 2010, it is likely that
                                                                                rents or leave.                                                   rental yields will return to something close to global
     * Over the past 12 months
     ** Increases for Burj Residence is for the past six months, since the
        launch of the project                                                                                                                     averages by 2009. This is not to say that investment in
     Sources - Asteco and EFG-Hermes                                            As the supply of housing catches up with demographic              commercial property is unwise. With 1,281 new business
                                                                                pressures, the rental market is likely to slow in 2007, and       licences issued in the first nine months of 2006 and net
                                                                                possibly begin to fall in 2008, when even larger numbers of       foreign direct investment increasing tenfold since 2000 to
                                                                                properties are due to come to market.                             US$1.4bn, there will continue to be demand for premium
                                                                                With market fluctuations on the horizon, there is no better
                                                                                time for investors thinking of buying to lease, or those          This kind of analysis is key to a successful foray into
                                                                                wanting to lease for themselves, to contact Landmark              commercial property, either as a buyer or a leaser.
                                                                                Properties’ Residential Leasing Division. With sophisticated      Landmark Properties’ Commercial Division caters to both
                                                                                forward planning tools at our disposal, we are able to            markets, with insightful analysis of where is best to buy and
                                                                                second-guess the market in order to give you the best             where is best to rent.
                                                                                possible value for money.

Developments in Residential and
Commercial Projects
Until recently, the Dubai market for project development
was cornered by the three government developers: Nakheel,
Emaar and Dubai Properties. At current rates, these three
primary developers will provide around 50% of all units
delivered within the next four years.

However, the number of non-government investors in this
field has increased significantly, partly as a result of the
primary developers selling or leasing land for third-party
development. These new developers are investing from all
over the world, and are predominantly investing in the
luxury segment of the market.

With mounting construction costs and greater supply,
however, developers of all kinds can no longer afford to
adopt a ‘build first, sell later’ strategy. Buyers have much
higher quality concerns than even two years ago, and with
the introduction of more sophisticated finance options, can
be swayed by arrangements with financial institutions.

For developers, this means that market studies,
materials-cost analysis, and serious marketing are critical
elements in any successful project. This is where our Project
Sales & Marketing Division excels. Established specifically to
offer developer-clients bespoke analysis, management,
marketing and sale of projects at any stage of the
development cycle, the Division’s team of development
experts will be with you every step of the way.

Such remarkable growth has positioned
Dubai at the very forefront of the
modern Middle East.
Landmark Properties for Investors and Businesses
With specialist Divisions covering the full spectrum of property
investment and use, we provide the professional investor and high net
worth individual with the most comprehensive set of tools possible, to
make the UAE a profit-making real estate opportunity. Through our
extensive local knowledge of the residential, leasing and commercial
markets, and from a single investment all the way up to the individual
selection of properties for a portfolio, our long–term strategic analysis
and advice finds you the best opportunities - at the right price.

Landmark Properties for Developers and International Agencies
Although there is typically a limited range of solid data available to the
major investor (whether from inside or outside the region), Landmark
Properties’ project development capabilities are second to none.
Through our Project Sales & Marketing Division (and by extension the
resources of our other three Divisions) we are able to offer advisory
services to clients of any size.

     The Partners

                    Landmark Properties is owned and run by the same group of
                    professionals that first conceived the idea of creating the leading real
                    estate brokerage in Dubai. At that point, Landmark Properties became
                    Dubai’s first real estate brokerage to offer a systematic, consultative
                    approach to property dealings.

                    This unwavering commitment to international standards of probity and
                    excellence is what has made Landmark Properties Dubai’s premier real
                    estate services company today.

                    Each of the partners is a successful business person in their own right.
                    They come from the US, UK and the UAE, and bring unsurpassed
                    knowledge and experience of the international property markets to
                    every detail of Landmark Properties’ operations. Crucially, all are
                    involved in the day-to-day running of the business.
        “Stagnation means regression,
therefore you should strive to develop.
    If you cannot, you should give up
                 your place to others”
                       Sheikh Mohammad Bin Rashid Al Maktoum
Head Office
The Fairmont
Office 612
Sheikh Zayed Road
PO Box 74454
Dubai, United Arab Emirates

Tel: +971 4 331 6161
Fax: +971 4 331 4949

Sheikh Zayed Road Branch
Office 3
Between 2nd & 3rd Interchange
Best Homes Business Center
Sheikh Zayed Road
PO Box 74454
Dubai, United Arab Emirates

Tel: +971 4 338 7769
Fax: +971 4 338 7669

Marina Branch
Office 4
Marina Diamond 1
Dubai Marina
PO Box 74454
Dubai, United Arab Emirates

Tel: +971 4 368 9121
Fax: +971 4 368 9124

Landmark Real Estate Investment
Management Ltd.
Emaar Business Park
Sheikh Zayed Road
Building No.4, Office no.310
PO Box 211858
Dubai, United Arab Emirates

Tel: +971 4 362 6162
Fax: +971 4 362 6061
Landmark Properties LLC
The Fairmont, Office 612, Sheikh Zayed Road, PO Box 74454, Dubai, United Arab Emirates
Tel: +971 4 331 6161 Fax: +971 4 331 4949