Prospective investors look over Sorouh real estate's master plan for LuLu Island at Cityscape Abu Dhabi last year. Most experts stress extensive research into the developer's history before you seriously consider an investment. Exercising due diligence will help ensure the lasting value of your property.
Prospective investors look over Sorouh real estate's master plan for LuLu Island at Cityscape Abu Dhabi last year. Most experts stress extensive research into the developer's history before you seriouShow more

Invest from a position of strength



Cityscape Abu Dhabi, which starts tomorrow, will mark a broad arc of the country's property market from a frothy sea of speculators to a deliberative pool of buyers looking for homes. It has also been a year of lessons learnt - many people who bought apartments and villas are now struggling to get their money out of delayed projects, or are suing companies who have not started even the most basic construction.

Perhaps the most positive effect of the sudden slowdown in sales and decline of prices is the growing power of buyers in the market, observers say. When a developer launched a new building a year ago, units would sell out in a matter of hours. There was no time for negotiation and, more importantly, no interest on the part of the developer. Now a prospective buyer can enter a sales office and set out their demands before plunking down a single fil for a piece of property.

"Before all the obligations were on the purchaser, not the developer," says Ludmila Yamalova, a lawyer with M.A.C. Davidson & Associates in Dubai. "Now, contracts need to be a lot more evenhanded. Buyers can ensure they have rights." Still, would-be homeowners need to take proactive steps to make sure their life savings are safe and retrievable if the developer breaks the agreement or if other problems arise. The most important thing to keep in mind is to enshrine your needs in a legal document. Anything that is not in the contract could evaporate into thin air.

Here is our list of the seven most important steps to take before buying in Abu Dhabi or Dubai @Body-SubheadNew:1 Do your homework For most people, buying a home is the largest investment of their financial life. If you are getting a mortgage, you are looking at monthly payments for up to 25 years. So, do your homework on everything that relates back to your purchase. Read up on all the recent articles about the developer, paying special attention to disputes that have arisen over construction or delivery dates. You need to fully understand how reliable the company you are dealing with is. This is important even if you are buying on the secondary market, because ultimately you are relying on the developer to finish the project.

If the apartment is already finished, make sure you read up on the neighbourhood and make an unscheduled visit. Your building may be ready for occupation, but a promised mall or shopping area could be years away. And you want to make sure that construction noise will not keep you sleepless for the next decade, so check on the progress of nearby buildings. In addition, check whether the master developer of the project has made progress with the infrastructure. A finished apartment building is not worth much if there is no electricity or water.

@Body-SubheadNew:2 Check with the Government In Dubai, the Government is taking an increasingly active role in guaranteeing the rights of investors. The Real Estate Regulatory Agency and Dubai Land Department have promulgated a number of laws that require that not only all transactions be registered, but also every broker, developer and escrow account. So check that all the parties you deal with are properly accredited with the Government. One of the most important things to check before you hand over money is that your check is addressed specifically to the escrow account associated with your project. This ensures that the developer cannot use the money for anything except construction of that project.

"It is important to make sure everything is registered because if you don't, there is no guarantee that your payment will go to the right place," says Ms Yamalova. She says that a buyer can go even further by making contact with the trustee of their escrow account at the bank. This person is in charge of making sure that the payments are used for appropriate things like paying construction companies and not, say, starting a new project.

Some sort of regulator is expected to be formed in Abu Dhabi, but no details of how it will work or what laws it will pass have been put forward by the municipality yet. @Body-SubheadNew:3 Make sure the developer has its ducks in a row Ask the developer to show proof that it fully owns the land they plan to build on. There have been multiple cases in Dubai recently in which someone bought from a developer, but the developer ended up defaulting on payments to the master developer. This leaves the buyer with no recourse to get their money back and no asset.

Also ask for specific details on the construction timeline and whether the developer has hired contractors to start building your new home. @Body-SubheadNew:4 Make sure you have your ducks in a row Talk to a financial adviser or make a spreadsheet of your income and expenses. Home buyers need to know their limits and not get glassy eyed when viewing apartments that are out of their league. Be realistic, or else you will increase the chances that you will default and lose some, or all, of your savings.

@Body-SubheadNew:5 Take advantage of the slow market When sellers start to get desperate, it means the buyer can push their boundaries on everything from sales price to fees to contracts. If a seller looks distressed, lowball them on a price. If they do not take the bait, then negotiate back up closer to your target price. In any case, it's a good time to attempt to find a deal. "Sellers are a lot more accommodating than they were before," says Ras Kazerouni, an estate agent with the Property Store. "It's been getting cheaper and cheaper and there is no measuring stick for a bottom line in Dubai because this never happened before."

Ms Kazerouni says that her clients have been able to increasingly leave the brokerage fees with the seller as well, which saves buyers about 2 per cent of the transaction. An estate agent can be your best friend and find you some choice deals, but do your homework on them, too. Make sure they are registered with Rera and do not let them trick you into paying more for an apartment than the seller actually wants.

This is a classic scheme to increase their take-home at the end of the transaction. @Body-SubheadNew:6 Build safety for yourself into the contract Once you've decided to go with an apartment, then you may be well served by hiring a lawyer. Buyers in Dubai should take note that this is common practice in developed property economies. It isn't just an added expense, but an insurance policy that will prevent you from getting ripped off or squeezed for more money down the road.

That being said, it will set you back about Dh10,000 for the advice of a lawyer and some negotiation. Make sure that the contract leaves you with an exit strategy in case your whole world starts falling apart. If you can no longer afford your payments because you lost your job, there should be a way for you to leave your contract and get most of your money back. Also make sure the contract lets you break off the sale if your mortgage does not come through, says Nick Clayson, the head of property law at Norton Rose in Dubai. "If you agree to a price, you shouldn't assume that a bank will agree with you," he said.

"Tell the seller that you would like your contract to be conditional on getting an acceptable valuation from the lender ... It's buyer beware in this market." Get some guarantee about your service fees, too. There have been cases where service fees shot up five-fold in a single year. These can add up to tens of thousands of dirhams. Tell the seller that you want some guarantee that this will not happen and get it added to the contract.

In short, have everything you believe you are getting for your money written down and signed by the seller. This is especially true in Abu Dhabi, where there is no central regulator. At the end of the day, contracts will be the point that two sides always go back to - it's your best friend or, if you don't pay attention, your biggest weakness. @Body-SubheadNew:7 Take your time Now that the market has slowed down, every buyer can take a step back and look at the data in front of them before signing over their fortunes.

Keep in mind that homes are not commodities. Do not let a momentary lapse in property prices scare you into selling your recent purchase at a loss. "Investing in real estate is a 10-year process," says Guy Alan Sadler, the chief executive of Profile Group Properties in Abu Dhabi. "If you wait, you will usually come out well in the end." @Email:bhope@thenational.ae

In the Restaurant: Society in Four Courses
Christoph Ribbat
Translated by Jamie Searle Romanelli
Pushkin Press 

If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
THE LIGHT

Director: Tom Tykwer

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger

Rating: 3/5

LA LIGA FIXTURES

Saturday (All UAE kick-off times)

Valencia v Atletico Madrid (midnight)

Mallorca v Alaves (4pm)

Barcelona v Getafe (7pm)

Villarreal v Levante (9.30pm)

Sunday

Granada v Real Volladolid (midnight)

Sevilla v Espanyol (3pm)

Leganes v Real Betis (5pm)

Eibar v Real Sociedad (7pm)

Athletic Bilbao v Osasuna (9.30pm)

Monday

Real Madrid v Celta Vigo (midnight)

Company profile

Name: Infinite8

Based: Dubai

Launch year: 2017

Number of employees: 90

Sector: Online gaming industry

Funding: $1.2m from a UAE angel investor

'My Son'

Director: Christian Carion

Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis

Rating: 2/5

TEACHERS' PAY - WHAT YOU NEED TO KNOW

Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:

- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools

- average salary across curriculums and skill levels is about Dh10,000, recruiters say

- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance

- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs

- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills

- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month

- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues

Sri Lanka's T20I squad

Thisara Perera (captain), Dilshan Munaweera, Danushka Gunathilaka, Sadeera Samarawickrama, Ashan Priyanjan, Mahela Udawatte, Dasun Shanaka, Sachith Pathirana, Vikum Sanjaya, Lahiru Gamage, Seekkuge Prasanna, Vishwa Fernando, Isuru Udana, Jeffrey Vandersay and Chathuranga de Silva.

Results

Stage seven

1. Tadej Pogacar (SLO) UAE Team Emirates, in 3:20:24

2. Adam Yates (GBR) Ineos Grenadiers, at 1s

3. Pello Bilbao (ESP) Bahrain-Victorious, at 5s

General Classification

1. Tadej Pogacar (SLO) UAE Team Emirates, in 25:38:16

2. Adam Yates (GBR) Ineos Grenadiers, at 22s

3. Pello Bilbao (ESP) Bahrain-Victorious, at 48s

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

THE SPECS

Engine: 6.75-litre twin-turbocharged V12 petrol engine 

Power: 420kW

Torque: 780Nm

Transmission: 8-speed automatic

Price: From Dh1,350,000

On sale: Available for preorder now

Ultra processed foods

- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns 

- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;

- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces

- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,

- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

Six pitfalls to avoid when trading company stocks

Following fashion

Investing is cyclical, buying last year's winners often means holding this year's losers.

Losing your balance

You end up with too much exposure to an individual company or sector that has taken your fancy.

Being over active

If you chop and change your portfolio too often, dealing charges will eat up your gains.

Running your losers

Investors hate admitting mistakes and hold onto bad stocks hoping they will come good.

Selling in a panic

If you sell up when the market drops, you have locked yourself out of the recovery.

Timing the market

Even the best investor in the world cannot consistently call market movements.

Essentials

The flights
Emirates, Etihad and Malaysia Airlines all fly direct from the UAE to Kuala Lumpur and on to Penang from about Dh2,300 return, including taxes. 
 

Where to stay
In Kuala Lumpur, Element is a recently opened, futuristic hotel high up in a Norman Foster-designed skyscraper. Rooms cost from Dh400 per night, including taxes. Hotel Stripes, also in KL, is a great value design hotel, with an infinity rooftop pool. Rooms cost from Dh310, including taxes. 


In Penang, Ren i Tang is a boutique b&b in what was once an ancient Chinese Medicine Hall in the centre of Little India. Rooms cost from Dh220, including taxes.
23 Love Lane in Penang is a luxury boutique heritage hotel in a converted mansion, with private tropical gardens. Rooms cost from Dh400, including taxes. 
In Langkawi, Temple Tree is a unique architectural villa hotel consisting of antique houses from all across Malaysia. Rooms cost from Dh350, including taxes.

Visit Abu Dhabi culinary team's top Emirati restaurants in Abu Dhabi

Yadoo’s House Restaurant & Cafe

For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.

Golden Dallah

For the cappuccino, luqaimat and aseeda.

Al Mrzab Restaurant

For the shrimp murabian and Kuwaiti options including Kuwaiti machboos with kebab and spicy sauce.

Al Derwaza

For the fish hubul, regag bread, biryani and special seafood soup. 

The specs: 2018 Volkswagen Teramont

Price, base / as tested Dh137,000 / Dh189,950

Engine 3.6-litre V6

Gearbox Eight-speed automatic

Power 280hp @ 6,200rpm

Torque 360Nm @ 2,750rpm

Fuel economy, combined 11.7L / 100km

Miss Granny

Director: Joyce Bernal

Starring: Sarah Geronimo, James Reid, Xian Lim, Nova Villa

3/5

(Tagalog with Eng/Ar subtitles)

CREW
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