As we wrap up one more month in 2020, let’s look back at the month of April and recap all the exciting UAE real estate news updates. While it was a challenging period for all of us in the UAE real estate industry, it was also a time when the entire fraternity came together and stayed positive and resilient.
TOP DUBAI REAL ESTATE NEWS UPDATES FOR APRIL 2020
As the government slowly begins to ease the COVID-19 restrictions across the UAE, there have been some major announcements in the Dubai property market. Here are all the Dubai real estate news updates announced in April 2020 that you should take note of.
EMPG ANNOUNCES MERGER OF BUSINESSES WITH OLX GROUP
Bayut’s parent company EMPG’s merger with OLX’s businesses is one of the biggest UAE real estate news updates in April 2020
The most impressive announcement in the Dubai real estate market during April was the merger between Bayut’s parent company, Emerging Markets Property Group (EMPG) and the Netherlands-based OLX Group. As part of the merger, EMPG will take over OLX businesses in Pakistan, Lebanon, Egypt as well as Dubizzle in the UAE.
In addition to the merger, EMPG also secured $150M (AED 550M) in its latest investment round, taking its valuation to over $1 billion. This makes EMPG one of the few companies in the region to attain unicorn status.
EMPG remarked that the merger and latest round of financing will help further enhance the user experience by “introducing new services, enhancing data transparency, and deepening market intelligence for both consumers and business users.”
Haider Ali Khan, the CEO of Bayut Head of EMPG – MENA commented on the collaboration, saying,
“We, at Bayut and EMPG, are very excited about the future of the UAE real estate industry and the prospects of real estate in the MENA region. This merger of EMPG and OLX will allow us to better serve our customers, given that both operate brands with a strong following and will allow us to leverage existing tech and data to paint a more accurate picture of the state of affairs in the real estate industry across the region. At the same time, we will be making significant technology investments to provide more value to all users of property, automotive and other segments of the Dubizzle and OLX platforms. I look forward to a bright and prosperous future for the group.”
RENT WAIVERS ANNOUNCED ACROSS DUBAI
One of the most discussed topics in the Dubai real estate market during April was about the rent relief packages announced by landlords for their commercial and residential tenants, due to the COVID-19 outbreak.
Leading UAE real estate companies like Meraas, Al-Futtaim Group and Emaar Malls were among the first to announce relief packages of up to AED 1 billion for commercial tenants leasing units in their developments. Along with these, landlords of various residential units also provided rent relief packages in the form of deferred payments, discounted rents, as well as exemptions from late payment fines.
Check out our post on all the rent relief packages in Dubai, to find out more about all the financial support that was announced in the city’s real estate market.
DUBAI’S RERA WAIVES SERVICE CHARGE FINES FOR 2019-2020
Another noteworthy Dubai property news update for April 2020 was the waiver of overdue charges on non-payment of service fees in Dubai between 2019 to 2020. The move was made after a meeting with the Dubai Land Department (DLD) and the Owners Association (OA) management companies, as part of the wider efforts to reduce the costs of owning a home in Dubai. Moreover, the property owners were also given the option to pay off their service charges via instalments.
Commenting on the announcement, Saeed Al Fahim, CEO of Stratum Owner Association said: “These challenging times require able stewardship such that everyone can collaborate more effectively,”
“This initiative has a broad canvas in that it is facilitating more lenient payment terms of service charges for owners. It is the coordination between facilities management and OA companies that will ensure charges are lowered by waiving overdue charges as well as bringing in more leniency towards coordination of annual budgets.”
BLOOM PROPERTIES MAKES PROGRESS ON JVC PROJECTS
Our next feature on the list of Dubai real estate news updates is from Bloom Properties. Despite the challenges created by the COVID-19 pandemic, the developers have announced significant construction progress on two of their major projects in Jumeriah Village Circle (JVC) – Bloom Towers and Bloom Heights which are now 72% and 60% complete, respectively.
Commenting on the announcement, a spokesman for Bloom Holding said: “Our operations, projects and businesses will continue despite the effects of the COVID-19 situation, with the main focus on the timely delivery of our existing developments in Dubai.”
Bloom Towers and Bloom Heights are both residential complexes, offering investors and homeowners a range of apartment units. Bloom Towers has 944 residential apartments ranging from studios to 3-bedroom apartments across two high-rise towers, while Bloom Heights consists of three residential towers with 686 studios and 1-bedroom units.
OTHER NOTABLE UAE REAL ESTATE NEWS IN APRIL 2020
Here’s is a closer look at all the UAE property news updates from the other emirates.
ALDAR TEAMS UP WITH BANKS TO OFFER LOW-INTEREST RATE HOME FINANCE
The capital city’s leading developer has partnered with some of the top banks in Abu Dhabi to offer mortgages at a lower interest rate at some of its key developments.
According to Aldar’s statement, they will be teaming up with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and First Abu Dhabi Bank to offer finance at a fixed rate of 1.99% for three or five years with no application or valuation fees. This offer will be valid for 30 days. Prospective buyers can also benefit from a three- to six-months’ payment deferral when purchasing homes at Yas Acres, The Bridges, Mamsha Al Saadiyat and Jawaher.
AJMAN’S CROWN PRICE ANNOUNCES ECONOMIC STIMULUS PACKAGE
The latest UAE real estate news from the Ajman property market is the launch of a new economic stimulus package, which will provide relief to businesses across various sectors. The package was announced by Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of the Executive Council. The move, which is in line with the other economic stimulus packages in the UAE, is aimed at supporting the local community during these exceptional circumstances by implementing precautionary and preventative measures.
For the real estate sector, the Crown Prince issued 11 incentives including the cancellation of administrative fines for all violations related to real estate registration renewals. Businesses in industries like foreign trade, customs and tourism will also benefit from this economic package in Ajman, as special directives have been announced for them too.
RAK PROPERTIES ANNOUNCES COMPLETION OF GATEWAY RESIDENCES IN RAK
The final feature on our round-up of all the UAE real estate news updates for April comes from RAK Properties. In April, the developer announced the completion of the Gateway Residences project, that will consist of 144 luxury 1 and 2-bedroom apartments.
Announcing the project completion, Managing Director Mohammed Sultan Al Qadi said: “Each apartment at the Gateway Residences has been carefully designed to showcase the best of modern architecture with a hint of natural appeal. We are delighted to have projects ready for occupancy.”
The Gateway Residences has garnered interest in the UAE real estate news due to its strategic location in the Mina Al Arab community. The low-rise tower features a wealth of amenities including swimming pools, play areas, sports and recreational facilities and retail spaces. Buyers can take a look at the apartments for sale in Gateway Residences on our website, where prices for a 1-bedroom unit start from AED 669k.
That concludes this recap of all the real estate news in Dubai and the rest of the UAE for April 2020. If you’d like to receive these updates straight to your email, subscribe to our newsletter.