Leading property developers in Dubai and Northern Emirates have come up with the option of easy payment schedule for investors and end-users to off-set the impact of credit crunch.

With the International Property Show 2009 (IPS 2009) entering its second day, and the visitors showing up to feel the pulse of property market, the organizer of the show, Dawood Al Shirawi, said that holding the show during such a difficult phase is a huge success, and the organizers hope to sign few serious deals during and after the show.

He expressed confidence that towards the end of 2009, the property market would recover from the crisis and new regulations will help in consolidating the industry even further.

One of the leading freehold property developers in Dubai and Northern Emirates, Chapal, has announced an extension of one year for payment schedules to property buyers in Dubai and Ajman. By extending such an offer, Chapal aims to relieve its clients during tough times of economic crisis.

Chapal mentioned that this payment extension plan would benefit several thousands of investors and property end-users who booked villas and apartments in freehold projects of Chapal in Dubai Sports City, Emirates City Ajman, Emirates Lakes Towers (Ajman), Jumeirah Village Dubai, Chapal Flora Residences (Ajman).

The payment relaxation terms are currently being reviewed to support buyers of plot in master development in Ajman. IPS has been earmarked as the biggest transactional property event in the region.

Deyaar, the leading property developer, has announced plans to deliver more than seven of its projects in 2009, constituting more than 1300 units of its diverse project portfolio.

The projects due for delivery this year are The Citadel -the commercial tower, and Hamilton Residency -residential tower, both located at Business Bay. Other projects due for delivery this year are Madison Residency - the residential project at TECOM, and Coral Residence, Jade Residence, Ruby Residence, and Saphire Residence, all located at Dubai Silicon Oasis.

The Chief Executive of Deyaar, Markus Giebel, remarked that this confirms the company’s commitment to its investors and customers, despite the challenging conditions faced by the property sector.

Deyaar is well-placed to build on its current growth momentum and helps clients to overcome short-term constraints within the market. With the timely delivery of the projects, Deyaar is one again remaining firm on its commitment to meet the requirements of clients through comprehensive customer support strategy, such as enhanced payment support programme and individual bank financing assistance, he added.

Giebel mentioned that the projects are located along major growth corridors of Dubai, and Deyaar is pleased to deliver these quality projects during the year.

Being one of the fastest growing property companies in the region, Deyaar Development PJSC, currently is the foremost in the region’s property sector, focusing on property development, facilities management, marketing and sales.

According to property agents in Dubai, there has been considerable buyer interest for completed properties during recent weeks. Increased transactions are being witnessed with banks regaining confidence, and beginning to approve mortgages.

Past two months, although there hasn’t been any viewing, during the past ten days, viewings have picked up considerably, and there is more consumer interest returning to the market, says Ronald Hinchey, Resident Partner, Cluttons.

Another Independent Property Consultants, Sherwoods, says that those planning to buy property now live in the property. With prices to the decline, people are considering affordable homes, says Iseeb Rehman, the Managing Director.

In the meanwhile, Owners are looking out to sell their properties, amidst growing concern over fall in prices, the agents report. Rehman mentioned that Sherwoods made five sales during the past week, in major sought-after areas such as Discovery Gardens, Dubai Marina and Jumeirah Village.

Rehman also mentioned that a growing interest is seen in office space, with more property coming on to the rental market, as owners seek stable revenue stream.

Property Advisor at Choueri Real Estate, Rima Moukarim, mentioned that owners’ who have been holding on to property, anticipating a price recovery, can now look for a quick sale. He confirmed that the market is witnessing more sales and transactions.

The Assistant Director General of the Department, Mohammed Thani, mentioned that about Dh.2bn worth of mortgages have been registered with the Dubai Land Department this year. Moukarim said that banks seem more confident about lending. Also, with the banks resuming property lending, it is hoped that they would adopt a less stringent approval process.

In the meanwhile, the property experts have expressed their opinion that the market should offer incentives to lure back buyers and instill confidence by offering permanent residence visas to freehold home-owners.

When people purchase freehold property, it is the duty of the Government to offer permanent residence for the rest of their lives, as long as they own that property, says Hinchey.

A five million square foot self-contained development, worth Dh.734mn ($200mn), namely the “Food City“, is underway in Dubai, revealed industry sources yesterday.

The development, with a capability of accommodating 400 to 500 companies, is aimed at wholesale food merchants, said Farouk Qasim, Head of Food and Beverage group, Dubai Chamber of Commerce and Industry (DCCI).

According to Qasim, things would be easier if everything is under one roof, such as inspections for customs, or warehousing. Therefore it would be a one-stop shop.

Although the estimated value of the project is currently worth $200mn, this figure may vary depending on the construction costs.

The City is likely to be located close to a seaport, as majority of exports go by sea. Dubai Food City will increase food security in the UAE, which already imports 90 percent of its food. The project, which is currently in planning stages, will be carried out in four phases, with one complete phase hoped to be completed by 2012.

Dubai already houses the Dubai International Finance Centre, Media City, Internet City, Healthcare City, Knowledge Village, Humanitarian City, among others.

Property projects in the GCC (Gulf Co-operation Council), particularly in Dubai, are still being actively pursued, despite the global economic crunch, reports the leading property portal REIDIN.com, which tracks real estate transactions in the GCC.

The portal said that Dubai is still the leading player in the regional property market, with Dh.5bn worth of investments flowing into the emirate in 2008.

About 5.8 percent of worldwide land sales transactions were accounted for by Dubai. Dubai was also ranked the fourth highest in global land sales rankings in 2008. Majority of the GCC investment into the emirate came from Saudi Arabia (Dh.2bn), followed by Dh.1bn from Kuwait, Dh.818mn from Oman, Dh.615mn from Bahrain, and Dh.117mn from Qatar.

The portal mentioned that there is a strong interest in Dubai property sector, despite the projected slump in UAE economy for this year.

The CEO of REIDIN.com, Ahmet Kayhan, said that the property sector is facing a challenging time confronted with issues such as liquidity, threatening investor confidence. However, the trends reveal that the Dubai property sector will still be the busiest with investments and transactions remaining comparatively higher.

According to Kahyan, despite the dim outlook on UAE economy, Dubai property sector will continue to witness constant transactions, and the government will continue its efforts to soften the impact of financial crisis by offering liquidity.

Four new regulations are likely to be announced in Dubai next month, following which, property owners in Dubai, can expect a respite from increasing service charges, announced RERA (Real Estate Regulatory Authority) yesterday.

As per the proposed new rules, service charges for buildings that have been delivered already, will be frozen at rates that prevailed last year, provided, the current rates are less than that of last year’s or have been approved by RERA.

The freeze will remain valid until the first general assembly of Owners Association, due to happen within three months of registration.

Service charges for buildings that are due for hand-over soon, or are in the process of being handed over, will also be subject to approval by RERA.

The owners of buildings that have been already handed over, or are due for hand-over, will have to pay service charges until the owners approve the service charges decided during the General Assembly. Service charges already paid, will have to be adjusted to meet the revised rates.

Speaking on this issue, Reinaldo, Director of Fine and Country, said that developers need to understand that property owners are stakeholders on the development, and that their role is vital. Without the Owners Association, there will be no transparency on the dealings.

Property investors with holiday homes in Turkey are selling them because of the economic downturn, according to real estate agents.

Many of them are British who fear that they will not be able to keep up with mortgage payments and are concerned that tourism numbers will be low this year despite reports that more visitors than ever are expected.

Those who are keeping their properties are trying to find ways of making them pay including taking in bed and breakfast guests and renting them out even though they didn’t in the past.

There are also reports of the banks repossessing holiday homes whose owners have defaulted on payments.

In western Turkey where a lot of towns rely on tourism for income, thousands of holiday homes are on the market. In Muğla’s Fethiye district around 2,500 properties out of 6,500 owned by British people are on sale, according to the Real Estate Counsellors Federation.

‘Fethiye is the district most severely affected by the crisis. Foreigners own 40% of the total property in Muğla,’ said Ziya Ercan, the federation’s vice chairman.

The Turkish government is planning an advertising campaign to boost tourism.

There were 23 million tourists in 2008 and this number is expected to increase to 30 million in 2009.

Property developers in Dubai who fail to meet standards, don’t deliver on time and construct poor quality buildings are to be named and shamed.

The move from the Real Estate Regulatory Authority is aimed at addressing a growing number of complaints about delays, defects and standards.

Chief executive Marwan Bin Galita said the regulatory body was not going to let developers get away with shoddiness.

He has personally told property developers that they need to be more flexible and communicate effectively with real estate investors, especially in the economic downturn.

He said that while developers would be allowed to retain 30% of the value of property, as is allowed in current contracts, if investors sought to pull out of projects. But he also said there should be exceptions.

‘Exceptions could be made if the investor is unable to continue to pay due to some genuine reasons, such as loss of pay, job loss. This should be considered,’ he said.

The property market in Dubai is expected to stabilise in 2010 but not recover until 2011 as high levels of new supply are maintained, according to analysts.

This year will see a period of correction as the global downturn continues, according to a research report from Jones Lang LaSalle. Prices and rental rates should then stabilise but the first signs of recovery are unlikely before 2011, it says.

Dubai is expected to be harder hit than other markets in the Gulf region due to its greater integration in the global economy.

‘The impact of the global economic crisis on real estate markets in the GCC has been both sudden and dramatic,’ the report said.

‘While other markets across the region are likely to witness a similar shape to their cycle, the timing and magnitude will be somewhat different to that experienced in Dubai,’ it continued.

The GCC real estate markets have come under increasing pressure as banks across the region stop lending in a bid to reduce their exposure to real estate, while developers are being hit hard by defaulting buyers and a debt market that has dried up.

But, Jones Lang LaSalle said that the downturn also presented significant investment opportunities. Analysts highlight the Abu Dhabi commercial sector, middle income housing in Dubai and Saudi Arabia and Qatar as good options.