admin 19/08/2019 No Comments
Dubai to spend over $75.4m on landscaping projects for Expo 2020 site
Dubai Municipality has delivered 863,117 plants ahead of October 2020 launch
Dubai to spend over $75.4m on landscaping projects for Expo 2020 site
An area of 220,000 square metres has been allocated for a nursery with plants and trees within the Expo 2020 site.
The cost of Dubai Expo 2020’s irrigation and landscaping projects is expected to be over AED277 million ($75.4m).
Taleb Abdulkareem Jilfar, executive director of the Infrastructure Services Division at Dubai Municipality, revealed an area of 3.57 square kilometres is expected to be ready before the official launch of the exhibition in October 2020.
The municipality has delivered 863,117 plants, valued at more than AED22.5m ($6.1m), according to a report by Emirates News Agency (WAM).
The event’s location, which includes 86 multi-purpose buildings, will feature large areas for open-air celebrations, decorated by plants that rely on drip irrigation techniques, including the Al Fursan Park that accommodates 2,500 people, and the Jubilee Park that accommodates 15,000 people.
Ahmed Al Khateeb, CEO of Development and Real Estate Development at the Expo 2020 Dubai, said: “The expo will not only feature buildings and pavilions that will impress visitors, but also trails, fountains and parks that will capture their attention, as well as the Al Wasl Dome, which will serve as a giant screen.”
Al Khateeb said that an area of 220,000 square metres has been allocated for a nursery with plants and trees, which will cultivate 12,157 trees, including palm trees, over 256,000 shrubs, thousands of flowering plants and herbs, in cooperation with Dubai Municipality.
He added that selected plants are either indigenous or are adaptable to Dubai’s environment, noting that expo has employed eco-friendly methods in the design and construction stages of the nursery – solar-powered lights were installed along the main road and the nursery’s team relies exclusively on organic fertilisers and recycle the nursery’s waste.
Treated wastewater provided by Dubai Municipality is used to meet the majority of the nursery’s irrigation needs and clean drinking water is only used for seed development during the first stages of plant development, said Al Khateeb.Read More
admin 13/01/2019 No Comments
The mortgagor shall be responsible for the safe keeping of the mortgaged property until payment of the debt.
Q2. I own a leasehold property, which was bought on mortgage loan. What are the precautions I need to take if I am cancelling my visa and exiting the country? I might be away for two to three years, but will be continuing my monthly instalments to the bank. Will there be any legal issue if I do this? Are banks allowed to charge a different interest rate in such cases?
Pursuant to your queries, we assume that the mortgage property is residential property located in the emirate of Dubai. You should approach the bank from where you availed the mortgage loan and inform them that you are re-locating out of the UAE and will be back to UAE after two or three years. However, you should continue to fulfil all your obligations towards the bank on time and without a default.
Each bank has its own policy and normally the mortgage agreements have a clause to the effect that the bank can call back the loan amount at any time. In any event you need to maintain the mortgage property in good condition. This is in accordance with Article 19 of the Law No. 14 of 2008 Concerning Mortgages in the Emirate of Dubai (the ‘Dubai Rental Law’), which states: “The mortgagor will guarantee the mortgaged property and keep it in good condition until the debt is repaid. The mortgagee (lender) may protest any deficiency in the guarantee and take whatever legal action is necessary to protect his rights and recover the costs from the mortgagor.”
Further, Article 1414 of the Federal Law No. 5 of 1985 related to Civil Transactions of the UAE states that the mortgagor shall be responsible for the safe keeping of the mortgaged property until payment of the debt.
Since the mortgaged property is a security to the bank it may be satisfied having a charge on the property. In the event you default in paying instalments the bank it has the right to commence execution proceedings against mortgaged property. This is in accordance with Article 25 of the Dubai Rental Law, which states: “Upon default in payment of the debt when due or upon fulfillment of a condition granting early repayment status, the Mortgagee/creditor or his universal or singular successor must provide the debtor or person in possession of the mortgaged property or property unit 30 days’ notice through the Notary Public before commencing execution proceedings.”
Further, variation in interest rates depends on the terms of the mortgage deed signed between you (mortgagor) and the bank (mortgagee). If the mortgage deed states about variable interest rate then the bank may apply variable interest rates as mentioned in the mortgage deed.
Know the law
The mortgagor will guarantee the mortgaged property and keep it in good condition until the debt is repaid.
admin 13/12/2018 No Comments
If you’re living in Dubai, a major part of your income every month will go toward paying the rent. And for those going steady with the city and plan to stay long-term, buying a home is a smart investment, especially since your monthly loan repayments usually end up being cheaper than paying rent.
So, why don’t we all do it? Well, for one, not everyone can afford the sizeable down-payment (generally 25% of the property value, plus 8% in fees) on the home that the bank requires in order to finance the loan. And it’s estimated that about 70% of Dubai’s population actually falls right into that category.
That’s where rent-to-own schemes come in
It is an arrangement between an owner, who promises to sell their property to the tenant for a pre-determined price within a certain time frame. As part of the agreement, a percentage of the rent payment will be paid as a portion of the purchase price or the buyer’s closing costs associated with the transaction. In other words, the buyer basically rents the property for a specific amount of time before having bought /owning the property outright when the lease expires.
Rent-to-own has not gone mainstream in Dubai just yet, but the scheme is quickly gaining in popularity as an alternative for aspiring property owners who obviously like the fact that the rent paid on a home under the scheme is converted to equity, eventually resulting in them owning the property.
In theory, developers benefit too, because they get to sell their current ready-to-move-in stock of homes instead of having them sit on the market, driving down real-estate prices as supply remains high and demand is limited.
That said, however, rent-to-own properties are still not so easy to find. They don’t fit well into typical property listings for sale or rent. And risk-averse property developers generally prefer to get their hands on the large lump-sum that comes in the form of a down-payment, rather than the much smaller amount that would be coming in as a percentage of the monthly lease under a rent-to-own agreement.
Still, smaller developers are more likely to try and compete with each other to fill occupancy of their properties and are therefore also more likely to be more flexible. And since they’d be providing you with a road to owning your own property that you otherwise wouldn’t have, your lease on a rent-to-own arrangement (ranging anywhere between two and ten years in duration) would be higher than conventional rent or traditional monthly loan repayment/mortgage installments.
With that in mind, and if you do manage to find a rent-to-own scheme for an apartment or villa in Dubai that you would like to eventually call your own, you should be aware of what you might be looking at contractually.
Two potential types of rent-to-own lease agreements
With the option to purchase
This type of lease will require you to pay an “option fee” – a percentage of the property purchase price – in exchange for the right to purchase the home at a later date.
If you decide to do so, the owner/developer is required to sell it to you and apply the option fee to the purchase price. If you choose not to buy the property, you lose the option money.
With purchase agreement
Under this arrangement, everything is pretty much set in stone from the get-go. You and the property owner agree on a fixed purchase price or you come to an understanding that said price will be determined through an appraisal in the future. You also agree on the future closing date.
You should use the market to guide your decision on whether you go for a fixed price or a future appraisal price. In a rising market, opting for a fixed price will give you the opportunity to have equity in the home even before making the purchase. In all other market conditions, an appraisal at the time of purchase will ensure you don’t pay over market value.
Also, if you have credit repair work that needs to be completed, or if your financing is still a question mark, you should try to get a closing date that’s at least 12 months in the future.
Things to look out for/think about
Rememer, be mindful of all the terms and conditions in the contract.
Consider:b Who is responsible for the property during the time it’s being leased to you? You don’t officially own the property during the lease, so you don’t have all the control.
Or you might miss a payment – that also happens. Do you have terms in the contract addressing what the consequences might be? You want to avoid potentially losing all the extra money you have paid or losing the right to purchase.
You might decide that you want to sell the property to someone else while the rent-to-buy scheme is in place. Are you allowed to do this?
These are just some of the points you need to keep in mind before signing the contract.Read More