As with any property market, there are price differences between units of similar types and sizes when they are based in different locations. The quality of location and the site position in a development are relevant to the sales prices as indeed are the development specifications.
The Isis units are targeted at the premium end of the current market in coastal developments. They are designed to appeal to both local and international markets enabling the units to be sold worldwide. This maximises the security of the sales projections as they are not dependant on top end purchasers or particular purchasers from the UK or Europe, or indeed any other specific economic region.
In pricing the units we have used comparison with other developers who have sold recently in premium coastal developments or comparable locations.
TITLE AND LEGAL ISSUES
The purchase of the site has been affected by the purchase of a single purpose corporate vehicle (SPV) which holds the binding Sale and Purchase Agreement (SPA) for the land. Under this SPA the property is paid for by way of a series of land payments as required under the schedule of payments set out in the agreement.
This agreement is in common format and is a well-recognized contract for the purchase of property from the government owned companies in the development zones throughout Dubai.
Under this contract the Government owned Master Developer provides detailed guidelines for the design, construction and use of the building to be constructed on the property. These guidelines have already been provided enabling design work and construction to proceed without delay.
Freehold title in Dubai
The Property Law in relation to Real Property Registration in the Emirate of Dubai Law No. (7) of 2006 ("the Law") came into effect on 1 April 2006. This extends the right to own property in designated development areas to both foreign individuals and foreign companies. It provides for the registration with the Land Department of Dubai of both freehold and long leasehold titles.
The sites for this project are being transferred with freehold title and in the UAE; freehold title has the same meaning as in the UK and other commonwealth jurisdictions.
There is no restriction in the UAE Civil Code limiting the term of a lease, and 99-year leases to end users have become quite common throughout the market. The units we are producing in this development will either be sold as freehold or 99 year leaseholds with a management company contract in place for the management of the common areas in the development as would be the situation in a similar UK development.