Sheikh Mohammad Bin Rashid Al Maktoum, Vice president and Prime Minister of the UAE and the ruler of Dubai has passed a new Escrow Account Law in 2007 that is set to gain control of the apparent developer mess that affects funds and delays.

The new legislation states that developers have to guarantee the correct use of funds for new project launches. With the late lack of confidence of investors in the market and the projected rise of UAE mortgage rates toward the end of 2006, the real estate regulatory body (RERA) has taken a big interest in watching the action closely to protect the integrity of new developments.

With the new rule, Escrow accounts must be managed by banking or financial institutions who are approved by the DLD (also referred to as Escrow agents).

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Ryan Mahoney is the Managing Director of Better Homes, one of the UAE’s most prominent real estate agencies that has been in operation in the region since 1986.

Better Homes has been through the thick and thin of the ever changing landscape of UAE’s property market, particularly in the Dubai market. This has earned Better Homes a solid reputation as well as given them an unprecedented operational know-how in the region.

We asked Ryan to share a few thoughts about the real estate scene in Dubai and the UAE at large with us, and he was kind enough to oblige.

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Thanks to Flickr user Emiraty

With all the doom and gloom surrounding the property markets, we felt it was about time to take a look at those markets that have remained robust and healthy throughout the current credit crunch. So here are five markets that have consistently performed well, regardless of the ups and downs seen recently.

Manhattan, New York

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^{The ACI management team with Niki Lauda recently}

ACI real estate announced yesterday that it’s investment plans for the emirates is currently standing at a stunning £2.8 billion – which is scheduled for both Dubai and Abu Dhabi prime property development. Up-to-date investments include the 3 sports legend commercial towers, known as the “Trilogy” project situated along Dubai’s high-end Business Bay and another 5 new towers soon to be launched in Abu Dhabi.

ACI Real Estate is an affiliate of Alternative Invest Capital, a forward-thinking investment house from Germany.

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British Architect, Lord Norman Foster, along with Masdar, a UAE energy initiative, unveiled plans for a carbon-neutral city in the desert of Abu Dhabi last week. Foster & Partners architects will design the car-free city which will eventually house 50,000 people.

Masdar’s research institute, which was founded in partnership with the Massachusetts Institute of Technology, will be located in the 6.5 sq km development and aims to turn the city into an alternative energy cluster for 1,500 businesses.

Sultan al-Jaber, Masdar’s chief executive, said “Masdar City will become the world’s hub for future energy - By taking sustainable development and living to a new level, it will lead the world in understanding how all future cities should be built.”

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Continued delays in the completion of residential property projects in Dubai this year will continue in 2008, while a price correction is most likely in 2009 when supply exceeds demand, according to a new market report. “We believe that the delay in property handovers seen in 2007 will likely continue over the next 12 to 18 months,” investment bank EFG Hermes said in its UAE outlook report for 2008.

EFG are forecasting prices to rise by between 5 and 10% next year but suggest they are likely to peak in the second half of the year when property supply rises. The gap in supply in 2007 was roughly 20,000 residential units worth Dh34 billion said housing finance firm Tamweel. They are also predicting about 50,000 units of supply, with a demand of 54,000 units in 2008, taking the aggregate shortage to 24,000 units.

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Ras Al Khaimah is one of the emirates of the United Arab Emirates in the northern part of the Arabian Peninsula, bordering Oman. It is ruled by Sheikh Saqr bin Mohammad al-Qassimi and has a population of about 250,000 inhabitants.

The city itself as at 2007 had a population of 191,753 and has two main sections, Old Ras Al Khaimah and Nakheel (no relation to the property developer), which lie on either side of the creek which flows through Ras Al Khaimah.

RAK may be small, but it has big plans and is pumping money into several ambitious property projects - 31 real estate developments are underway or at the planning stage.

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