How will the fire at The Address affect property prices in Dubai?
Nobody can be exactly sure how The Address fire on New Year’s Eve will affect Dubai property prices. But as high-rise building freehold owners and insurance experts become increasingly nervous about the cost implications of a government survey of all properties to ensure that they conform to the latest fire regulations, the owners of individual units are also worried.
At the very least, it is reasonable to assume that it is going to be more difficult to sell such units in the immediate future, and if they are rented out then they are not going to be as popular.
Conducting a full survey of the estimated 900 high-rise buildings in the city is going to take time, and so will carrying out whatever remedial work is deemed necessary. Some buildings may need to be completely re-clad to be classified as safe again.
There will also have been some long-term damage to the reputation of Dubai high-rises as safe to live in, although it is impossible to quantify, and it is clear that the authorities will do whatever is possible to rectify this situation.
However, the property market is certainly not going to be unchanged by the events of New Year’s Eve, which were watched by tens of millions of partygoers on televisions around the world, and the aftermath in terms of blighting the market for a section of Dubai’s real estate cannot be overlooked either.
The most logical response from buyers would be to favour property in buildings that are unaffected by possible cladding issues over those that may be. Fewer buyers for those buildings will lower prices in the marketplace.
The quicker a building is cleared, the better for prices of its apartment units. But equally, this cannot be done in too much of a hurry, or the impact on confidence will not be sufficient to overcome the damage done.
Apartment owners in these towers are caught between the devil and the deep blue sea. Sitting this problem out is the best answer. Things could get better faster than expected.
For example, interim improvements may be implemented swiftly to make high-rise buildings safer. Simple but effective measures such as sealing balconies so that nobody can smoke on them or light a barbecue fire could be imposed.
Owners who have rented their units out are likely to face difficulties with tenants who may want to leave or expect a reduction in their rent to stay. The current law protects a tenant’s right to stay but does nothing to secure the landlord’s position beyond a small penalty for the tenant leaving.
On the other side of this equation, unless the confidence in Dubai high-rise towers can be restored quickly, there should be a rising premium on low-rise apartment developments and villas. A rising demand for the existing supply of the latter will put an upward pressure on selling prices and rental costs.
This new dynamic in the Dubai real estate market comes alongside what was already looking like a difficult year ahead following an already established downturn of 18 months to two years, depending on how you view it.
The UAE property sector was facing several other factors that augur badly for the year ahead: overseas buyers are vanishing, mortgage rates are going up and consumers are heavily indebted.
Russian and Chinese buyers are thin on the ground. The US dollar-linked dirham is at a 12-year high against major global currencies, and this makes buying a property in the UAE more expensive for many would-be foreign buyers. Global financial markets are also in turmoil.
Mortgage rates are rising in the UAE, and this makes buying a home more expensive in terms of regular payments. An increase of 0.5 percentage points sounds like nothing until you realise that translates into about a 12 per cent rise in monthly mortgage payments.
Finally, The National has carried many articles recently about how local consumers are drowning in personal debt after binge consumption during the good times. When credit is this extended, consumers are hardly in a position to take on a home loan even if they would like to.
The Address fire at the New Year compounds these difficulties for the third year of a bear market for Dubai real estate.
If you want to be optimistic, then you could see this as just setting up even better buying opportunities at the market bottom, and perhaps protecting low-rise villas and apartments from a further downturn.
Peter Cooper has been a senior business journalist in the Arabian Gulf for the past 20 years
business@thenational.ae
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Results
Stage 7:
1. Caleb Ewan (AUS) Lotto Soudal - 3:18:29
2. Sam Bennett (IRL) Deceuninck-QuickStep - same time
3. Phil Bauhaus (GER) Bahrain Victorious
4. Michael Morkov (DEN) Deceuninck-QuickStep
5. Cees Bol (NED) Team DSM
General Classification:
1. Tadej Pogacar (SLO) UAE Team Emirates - 24:00:28
2. Adam Yates (GBR) Ineos Grenadiers - 0:00:35
3. Joao Almeida (POR) Deceuninck-QuickStep - 0:01:02
4. Chris Harper (AUS) Jumbo-Visma - 0:01:42
5. Neilson Powless (USA) EF Education-Nippo - 0:01:45
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
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Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
UAE%20PREMIERSHIP
%3Cp%3E%3Cstrong%3EFinal%3A%3C%2Fstrong%3E%20Dubai%20Hurricanes%20v%20Jebel%20Ali%20Dragons%0D%3Cbr%3E%0DSaturday%2C%208.15pm%2C%20Al%20Ain%20Amblers%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESemi-final%20results%3C%2Fstrong%3E%0D%3Cbr%3EDubai%20Exiles%2020-26%20Dubai%20Hurricanes%0D%3Cbr%3EDubai%20Tigers%2032-43%20Jebel%20Ali%20Dragons%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ETable%3C%2Fstrong%3E%0D%3Cbr%3E1%20Dubai%20Tigers%2C%2033%20points%0D%3Cbr%3E2%20Dubai%20Exiles%2C%2024%20points%0D%3Cbr%3E3%20Dubai%20Hurricanes%2C%2018%20points%0D%3Cbr%3E4%20Jebel%20Ali%20Dragons%2C%2014%20points%0D%3Cbr%3E5%20Abu%20Dhabi%20Harlequins%2C%2014%20points%3C%2Fp%3E%0A
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
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THE%20SWIMMERS
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Crime%20Wave
%3Cp%3EHeavyweight%20boxer%20Fury%20revealed%20on%20Sunday%20his%20cousin%20had%20been%20%E2%80%9Cstabbed%20in%20the%20neck%E2%80%9D%20and%20called%20on%20the%20courts%20to%20address%20the%20wave%20of%20more%20sentencing%20of%20offenders.%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3ERico%20Burton%2C%2031%2C%20was%20found%20with%20stab%20wounds%20at%20around%203am%20on%20Sunday%20in%20Goose%20Green%2C%20Altrincham%20and%20subsequently%20died%20of%20his%20injuries.%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%E2%80%9CMy%20cousin%20was%20murdered%20last%20night%2C%20stabbed%20in%20the%20neck%20this%20is%20becoming%20ridiculous%20%E2%80%A6%20idiots%20carry%20knives.%20This%20needs%20to%20stop%2C%E2%80%9D%0D%20Fury%20said.%20%E2%80%9CAsap%2C%20UK%20government%20needs%20to%20bring%20higher%20sentencing%20for%20knife%20crime%2C%20it%E2%80%99s%20a%20pandemic%20%26amp%3B%20you%20don%E2%80%99t%20know%20how%20bad%20it%20is%20until%20%5Bit%E2%80%99s%5D%201%20of%20your%20own!%3C%2Fp%3E%0A
PLAY-OFF%20DRAW
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COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Dooda%20Solutions%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Lebanon%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3ENada%20Ghanem%0D%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20AgriTech%0D%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%20%3C%2Fstrong%3E%24300%2C000%20in%20equity-free%20funding%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2011%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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MATCH INFO
Euro 2020 qualifier
Fixture: Liechtenstein v Italy, Tuesday, 10.45pm (UAE)
TV: Match is shown on BeIN Sports
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
HOW TO WATCH
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%3Cp%3EAuthor%3A%20Alasdair%20Soussi%3C%2Fp%3E%0A%3Cp%3EPages%3A%20300%3C%2Fp%3E%0A%3Cp%3EPublisher%3A%20Scotland%20Street%20Press%3C%2Fp%3E%0A%3Cp%3EAvailable%3A%20December%201%3C%2Fp%3E%0A
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Killing of Qassem Suleimani
KILLING OF QASSEM SULEIMANI
ZAYED SUSTAINABILITY PRIZE
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
Diriyah%20project%20at%20a%20glance
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Killing of Qassem Suleimani
PREMIER LEAGUE FIXTURES
Saturday (UAE kick-off times)
Watford v Leicester City (3.30pm)
Brighton v Arsenal (6pm)
West Ham v Wolves (8.30pm)
Bournemouth v Crystal Palace (10.45pm)
Sunday
Newcastle United v Sheffield United (5pm)
Aston Villa v Chelsea (7.15pm)
Everton v Liverpool (10pm)
Monday
Manchester City v Burnley (11pm)
The specs
Engine: 3.5-litre twin-turbo V6
Power: 380hp at 5,800rpm
Torque: 530Nm at 1,300-4,500rpm
Transmission: Eight-speed auto
Price: From Dh299,000 ($81,415)
On sale: Now
Profile of MoneyFellows
Founder: Ahmed Wadi
Launched: 2016
Employees: 76
Financing stage: Series A ($4 million)
Investors: Partech, Sawari Ventures, 500 Startups, Dubai Angel Investors, Phoenician Fund
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Pieces of Her
Stars: Toni Collette, Bella Heathcote, David Wenham, Omari Hardwick
Director: Minkie Spiro
Rating:2/5
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Dengue%20fever%20symptoms
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