No service tax on remittances to India by NRIs: PM to Chandy

NEW DELHI: Prime Minister Manmohan Singh has dismissed reports of any plan to bring under the service tax ambit foreign remittancesby overseas Indians, Kerala chief ministerOommen Chandy said today. 

Singh has also sought details from the Finance Ministry on the issue, said Chandy who raised objections before the Prime Minister over the reported move by the Government to levy the tax on the money of Indians working abroad. 

"Prime Minister has dismissed reports that the Government is planning to charge 12.36 per cent on all foreign remittances to India," Chandy told reporters after meeting the Prime Minister here. 

The Chief Minister took up the matter with the Prime Minister as the annual remittances from NRI population in Kerala is nearly Rs 50,000 crore and such a move by the Centre would hit the economy of the southern state. 

"Prime Minister said that no decision has been taken to levy the tax on money sent by the NRIs. He has assured status quo on the service tax issue," Chandy said. 

Chandy also asked Prime Minister to take immediate steps to end the delay in securing the safe release of crew including Keralites taken as hostages by Somalian pirates. 

He told the Prime Minister that 43 Indian citizens had been taken hostage by Somalian pirates and requested him to "direct the authorities concerned" to take all possible steps to secure their release considering the agony and pain of the relatives of the abducted persons

Rakia chief denies $5bn swindle rumor

CEO says he is in UK on official Rakia businessThe CEO of Ras Al Khaimah Investment Authority (Rakia) denied that he had embezzled $5 billion and fled the UAE to Britain, saying he was in the UK for an official Rakia business, a newspaper reported on Monday.

Khater Massaad was reacting to rumour circulated on mobile phones and some websites that he had swindled the money and fled to the UK in his private jet, the Arabic language daily Emarat Al Youm said.

"These are mere rumours that have hurt my reputation...I have traveled to the UK on an official trip as part of my work with Rakia," he told the paper.

Massaad also denied that he had been sacked from Rakia, saying that his contract with the Authority has expired and would not be extended. He told the paper that he was till acting as CEO of the government-owned Rakia.

The paper also quoted police sources in the northern emirate as saying they have not received any reports about embezzlement within Rakia, which was established in 2005 to attract capital to the emirate.

Massaad is a Swiss national with a PhD in Geophysics and an Msc in Mathematics from Switzerland. He also holds the position of adviser to the RAK Crown Prince, Chairman of the Board of Directors for Rakeen, CEO of Al Hamra Hotels, and MD for RAK Airways

Palm Jumeirah villa prices up 25% in H1

Cash buyers dominate purchases, though number of finance buyers rising: agentsPrices of Signature and Garden Home villas on the Palm Jumeirah are on the rise, registering average increases of 11 to 25 per cent in first half of 2012 compared to same period last year.

Depending on their location and view, a few Signature villas are now listed at prices 50 per cent more than last year.

Although realty agents confirm that the majority of the purchases are in cash, a number of buyers using bank financing have gone up in the past few months suggesting banks have eased lending regulations and lowered their interest rates.

"Prices are driven, we feel, by regional turmoil bringing businesses into the emirate form other Arab countries," Mark Towers, Managing Director, Edwards and Towers, told Emirates 24|7.

"Likewise, there is a lack of villas available, in general; whether it is beachfront or inland, and demand is outstripping supply."

Towers revealed they had sold several villas in the last two months (May and June) on Palm Jumeirah with over 80 per cent of the deals done in cash.

"Our buyers are mixed, but recently we are seeing an increase of buyers from GCC and Russia."

Villas by the millions

Data provided by Edwards and Towers, which specialises in sales of Palm properties, reveals that on average, Signature villa prices rose seven per cent to 50 per cent in H1 2012 compared to same period last year.

A Frond K and Frond E high number were now selling for Dh30 million and Dh28 million, respectively, compared to a Frond P and F high number for Dh18 million, respectively, and a Frond C high number for Dh15 million in H1, 2011.

A Frond A mid number villa was selling at Dh17 million compared to a Frond D mid number at Dh16 million in H1, 2011.

In Garden Home category, villas were selling from Dh10 million to Dh11.6 million in H1, 2012 compared to Dh7.7 million to Dh9.3 million in H1, 2011.

Stats provided by propertyfinder.ae reveal prices for seven-bed Signature villas on average rose by 10.79 per cent to Dh18.78 million in H1, 2012 compared to Dh16.95 million in H1, 2011.

Average price for six bed jumped 19.63 per cent to Dh21.02 million from Dh17.57 million, while five-bed villa went up by 17.45 per cent to Dh20.66 million from Dh17.59 million.

Average prices for six-bed Garden Homes villa increased to Dh19.35 million from Dh15.30, registering a 26.47 per cent increase in H1 2012 compared to same period 2011.

Average price for five-bed climbed 13.73 per cent to Dh11.01 million from Dh9.68 million, while average price for 4 bed soared 15.17 per cent to Dh9.94 million from Dh8.63 million.

Illy Dimitrova, a property broker with Elysian Real Estate, says prices on average on the Palm have gone up by over 19 per cent to Dh1410 per square feet compared to Dh1182 per square feet in May 2011.

The reason, she believes, for the price increase is mostly the return of the trust in Dubai's market.

"Majority of the buyers are end users. A lot of investors are setting up their businesses in Dubai and Palm Jumeirah is the most luxurious and prestigious project in the emirate.

"These factors have increased demand and as the supply of villas has not increased prices have gone up."

Besides, Dimitrova informs the majority of transactions taking place on the Palm are predominantly in cash while only 20 per cent are mortgage buyers.

Gary Lintorn of BRIX Property Partners, says a lot of transactions are still in cash, but in the last three to four months there are more finance buyers coming in to the market as lenders are now lending again with attractive rates with a loan to value of 80 per cent.

"This is great for the market and we are definitely benefiting from the lenders coming back in to the market," he adds.

According to Dubai Land Department records, 719 sale transactions worth Dh3.46 billion have been registered during the first half 2012.

In April, Nakheel Chairman Ali Rashid Lootah said that property prices on Palm Jumeirah were higher than the pre-crisis level with properties selling for Dh15,600 to Dh16,150 per square metre.

He added they had managed to sell plots on Frond N at prices 30 per cent higher than last year and 70 per cent of the frond had been sold.

Dubai Properties Finalises Agreement with Emirates REIT

Dubai, July 3, 2012: Dubai Properties LLC, a subsidiary of Dubai Properties Group , today confirmed an agreement with Emirates REIT, the UAE's first real estate investment trust.

Under the agreement, Dubai Properties LLC contributed the revenue generating property "Office Park" to the fund and as a result became a shareholder in Emirates REIT.

Emirates REIT was established in 2010 to provide market entry opportunities, liquidity and stable long term returns for investors and now holds over 580 million Dirhams of income generating properties.

Office Park is a 374,000 square feet prime commercial and retail property located in Dubai Internet City. The building provides institutional quality space and enjoys strong occupancy levels due to its location within DIC and the close proximity of services and facilities within the free-zone. Major multinational and local corporations are the anchor tenants of the building.

Speaking about the recent agreement, Mr Khalid Al Malik, Group CEO of DPG , said "We are pleased to enter into this agreement with Emirates REIT at a time when we are seeing positive momentum in the market. It will bring further liquidity and opportunity to the market and ourselves. The agreement reflects our plan to optimize our balance sheet for the long term future."

Mr Abdulla Al Hamli, Chairman of Emirates REIT Management, said "We are delighted to enter into this agreement with Dubai Properties and welcome them as a significant shareholder in Emirates REIT. This acquisition will help us deliver strong returns in 2012, to build on the 10.54% net annualized return achieved in 2011. We look forward to working with Dubai Properties on acquiring further unique assets."

About Dubai Properties GroupDubai Properties Group ( DPG ), a member of Dubai Holding, develops and manages properties, communities and destinations. Through its subsidiaries DPG provides end to end solutions for a variety of services including sales, leasing, facilities management and security.

Founded on principles of transparency, accountability, and dedicated customer focus, Dubai Properties Group aspires to become the best partner in providing unique lifestyles, by creating a world class organization that offers a wealth of industry knowledge and expertise. DPG will constantly seek new and innovative ways to deliver comprehensive solutions to its stakeholders, investors and business partners.

About Emirates REITEmirates REIT is the first GCC Sharia Compliant Real Estate Investment Trust. The REIT was launched in 2010 under the REIT specific DFSA regulations.

Emirates REIT currently has over AED 580 million of assets under management and is seeking to expand the portfolio. It provides investors with diversified exposure to high-quality, income-generating properties. The portfolio is managed by a strong team with a long standing track record of delivering returns to investors.

Dubai Properties LLC is the fourth major shareholder in Emirates REIT, joining Dubai Islamic Bank, Deyaar and Tecom Investments.

Dubai property market buoyant; rents firm up

Rents in Marina and Downtown jump 10% in Q2Residential rents in Dubai continued to firm up for the second consecutive quarter of 2012 with areas such as Dubai Marina and Downtown Dubai registering an increase of 10 per cent in the second quarter compared to the first quarter.

Affordable communities such as Discovery Gardens also saw rents rising nine per cent quarter-on-quarter, while International City reported no rent decline, according to Asteco's first half 2012 report.

Dubai', which currently has 402,800 apartments and 58,300 villas, will see release of 11,600 apartments and 6,100 villas in the second half of 2012.

On the rental side, the property consultancy said a one- and two-bed apartments in Dubai Marina can now be rented for Dh70,000 and Dh90,000 per annum, respectively, while in Downtown, a one and two-bed apartment will cost Dh75,000 and Dh120,000 pa, respectively.

A one-bed apartment in Discovery Gardens is currently available for Dh40,000 (Dh35,000 in Q1), while a two-bed is for Dh60,000 pa (Dh53,000).

Overall, average apartment rents in the emirate gained six per cent while villas registered rise of nine per cent in the second quarter.

Elaine Jones, CEO, Asteco Property Management, in a statement, said: "Tenants are relocating in search of value-for-money, one- and two-bedroom apartments as well as three- and four-bedroom villas are the preferred unit types. In terms of rates, quality well managed developments, will continue to set the pace."

Mirdiff gains

Among the villa communities, Mirdiff reported the largest increase with rent for a three-bedroom villa increasing to Dh90,000 per annum, a 13 per cent gain from the first quarter.

A three-bedroom villa in Arabian Ranches is now costing Dh140,000 per annum, 11 per cent over the last quarter, the report said. Rents in Jumeirah Islands rose 11 per cent while Palm Jumeirah jumped 7 per cent.

On Sunday, Knight Frank's prime global rental index said prime residential rents in Dubai had risen one per cent in the first quarter 2012, but year-on-year had declined by 3.9 per cent.

Downtown, Marina, Palm popular

Apartments in Downtown Dubai, Dubai Marina and Palm Jumeirah remained most popular among buyers, witnessing price increases of nine per cent to Dh12,900 per square metre, eight per cent to Dh10,750 per square metre and eight per cent to Dh14,000 per square metre, respectively, in the second quarter.

Prices in Jumeirah Lakes Towers, Greens and Dubai International Financial Centre (DIFC) remained relatively stable, at Dh7,000 per square metre, Dh8,600 per square metre and Dh14,000 per square metre, respectively. Prices in Jumeirah Beach Residence jumped three per cent to Dh10,250 per square metre.

Ranches dominates

Sales price increases for villas were dominated by Arabian Ranches (16 per cent increase), the Springs (14 pre cent) and Jumeirah Islands (11 per cent).

Villas on the Palm Jumeirah were the most expensive in Dubai at Dh17,200 per square metre, followed by Jumeirah Islands and the Meadows priced at Dh10,750 and Dh10,250, respectively. The lowest prices were in Jumeirah Village at Dh5,400 per square metre.

Last month, Emirates 24/7 reported that Emaar Properties had launched 62 townhouses in Alma 2 cluster in Arabian Ranches with the units priced between Dh1.4 million and Dh2.2 million.

"Sales prices will continue to rise for quality developments, especially villas, while further supply along Emirates Road will restrain growth," Asteco pointed out.

Total office supply

According to the report, Dubai currently has 9.1 million square metres of office space, while about 770,000 square metres of new space will be released in the second half.

In the first half, approximately 5,000 apartment units handed with the majority located in Dubai Marina, Downtown Dubai, Sheikh Zayed Road, Dubai Silicon Oasis and International City.

Jumeirah Village and Deira saw the bulk of villas come on line, while Business Bay, DIFC and Sheikh Zayed Road delivered the majority of office supply.

Food prices to be cut by 30% in the UAE from next week

Reduction covers up to 27 items ahead of RamadanMuslims bracing for the fasting month of Ramadan later this month will be able to buy up to 27 food items cheaper by nearly 30 per cent as part of a Ramadan price-cut initiative spearheaded by the Ministry of Economy.

Supermarkets, cooperative societies and other shopping outlets will offer baskets containing between 13 and 27 foodstuffs next week to allow Muslims to cater for Ramadan and avert a rush in the fasting month.

A small basket will cost around Dh85 while the larger basket will be sold at Dh185 and both will include various food items, vegetables and fruits.

"These baskets will be offered by key shopping outlets next week to allow all consumers to cater for Ramadan...the prices of these baskets will be nearly 30 per cent less," said Hashim Al Nuaimi, director of the consumer protection division at the Ministry of Economy.

He said the small basket could be enough for a family of five for one week and will include rice, flour, sugar, tea, egg, milk, water, date and other items.

Nuaimi told the Arabic language daily Emirat Alyoum that food suppliers have also assured the Ministry that there would be no rise in the prices of meat during Ramadan, which is expected to start on July 20 or 21.

Four companies charged for violating Dubai labour laws

142 workers holding work permits issued by another emirate's free zoneThe Ministry of Labour has referred four companies to Dubai Public Prosecution for employing 146 workers illegally.

142 of the workers were holding work permits issued by another emirate's free zone and the remaining four workers had entered the country on visit visas.

Three of the companies had the same owner and the fourth one was owned by a foreign investor.

The Ministry of Labour took the action during an inspection campaign in June.

The foreign-owned company had been found guilty of irregularities earlier also, including not providing proper accommodation for its workers.

Issa Al Zarouni, director of inspections, said the campaign was conducted by a team of 17 inspectors in co-ordination with Dubai Police.

There were 290 workers in one factory though only 142 of them had work permits issued by a free zone.

There were administrators and senior technical staff besides labourers among those caught for violating labour laws, he said.

The use of work permits issued by free zones outside the zones is illegal, Zarouni said.

The four companies face fines up to Dh50,000 under Federal Law No.8 of 1980.