Smart Heights Reaches Half Way Point

Smart Heights development reaches the half way point of construction.
Smart Heights, which will feature some of the latest gadgetry and office technology, has now reached the 15th floor and is on schedule to reach its final 21 storey height and be completed by the end of 2009. The main contractor for the building is ECC.

The development is one of two projects that DAMAC Properties has at TECOM – with its Executive Heights building already completed last year.

Smart Heights will offer 288,000sq ft of office space and already most of the 21 floors have been purchased or leased. Among the ‘smart’ facilities available will be security card access control, energy efficient lighting systems, automated boardrooms and business lounges and touch pad request screens for elevators with LCD response panels.

Currently mechanical, electrical and plumbing works are underway at Smart Heights so that all cabling, pipes and wiring is integrated and contracts for internal fixtures and fittings including signage, lighting and sanitary ware are in the process of being awarded.

Chairman of DAMAC Properties, Hussain Sajwani said that offering the latest technology was now becoming a necessity for developers and that office locations in Dubai had to differentiate themselves in this way.

‘A lot of thought and consideration went into the design for Smart Heights. Today company’s expectations are that they will have an office environment that will be designed to meet their every need and make their lives easier. The use of automation, electronics and also IT facilities should be designed with the customer in mind and we believe that Smart Heights will offer great options for these facilities,’ said Mr Sajwani.

‘TECOM will eventually become a vibrant business community and it will be a great location for companies with excellent access to both the Sheik Zayed and Al Khail Roads – in addition to the TECOM metro station which will be just a few minutes walk away.

‘We already know that Smart Heights will stand out because of its futuristic design – but it will also become synonymous with modern technology.’

In addition to 21 office floors, the building will have a health club and outdoor swimming pool on site for those who want to relax after the working day, with a day care centre, green landscaped surroundings and views over The Greens development.

Mr Sajwani added:‘ Our progress at Smart Heights is there for all to see as the building starts to become a permanent and prominent fixture on the landscape at TECOM.’

Freehold Property in Dubai

In 2002 the government of Dubai created freehold property zones in the city. For the first time foreign individuals could own property in the freehold areas of Dubai. This has resulted in an unprecedented boost in the real estate market leading to massive construction projects that are among the best in the world. The new law was established in order to enhance the confidence of property buyers in the legal system. The legislation was intended to attract foreign investment through international developers that always prefer to work in countries where the laws are straightforward and keeps things simple. Before the law was passed foreign nationals could only get a 99-year lease at a maximum but it was only since 2002 that they could actually own property in the freehold areas of Dubai. Another good thing about the legislation is that it helps to support 80% of Dubai’s population, made of non citizens, to rent out the property and lead better lives. Freehold property owners in Dubai can rent out their property on 99-year leases of their own.

According to the new laws people looking for buying property in Dubai will now have outright ownership of the construction as well as the land below it. There will no going back between freehold and leasehold. The new Dubai property law means that you can register the property under your own name with the Dubai Land Department. The best part of all this is that the Dubai Land Department uses the latest technology to manage everything so there is no need to worry about endless paper work and fussy rules and regulations. Everything is designed to work smoothly for everyone. Before 2002 the buyers kept a contract of the sale from the developer that allowed them to transfer the ownership only through the developer. The contract included an agreement that the freehold property would be granted as the freehold title as soon as it was ready. The new law says that the title deeds can be handed over the owners a lot sooner.

A huge impact of all this can be seen in the mortgage market because of the high rate of construction and property trading going on in Dubai. The resale market is boiling hot and international banks, especially Standard Chartered Bank, are vying to enter the market to offer financial loan options. Hitherto the same institutions were unwilling to enter the market because of legal uncertainties. It is now fully expected that many banks are going to aggressively enter the market and lower the mortgage cost and offer highly competitive prices and several new services. Introductory discounts are going to make a huge difference to the mortgage market. It has generally been noted that the lower the cost of the money the higher the price of property. One of the reasons for high rates of property in the world is the low cost of money.

Funds Made Available to Support Dubai Builders

Dubai companies should begin receiving funds “in a matter of a week or two” from the US$10 billion (Dh36.73bn) the Dubai Government recently borrowed from the Central Bank to help ease a cash pinch in the emirate, Nasser al Shaikh, the head of Dubai’s finance department, said at a conference today.

The funds are part of a $20bn bond programme launched last month to help Dubai meet its short-term funding requirements. The move has calmed investors, who feared that companies may face difficulties repaying debts this year, given the reluctance of banks to refinance loans because of a global credit shortage.

The emirate will decide how to administer the funds on a case-by-case basis, he said, adding the money could be lent to the companies directly or used to guarantee loans provided through local banks.

While Mr al Shaikh said companies in Dubai’s property sector would receive special priority, companies outside of the property sector would also be eligible. Shady Shaher, an economist at Standard Chartered, said he still expected the majority of the money to go into property companies, especially those partially owned by the Dubai Government. “Since the majority of real estate companies have government ownership, they would naturally get more support,” he said.

A crucial decision will be what amount of money is allocated to paying down the companies’ debts and how much is needed to simply boost the cash they need to continue paying workers and contractors
The National Abu Dhabi