Some 18% more surveyors expected new sales and lettings to increase in the next three months, the latest Commercial Property Market Survey from the Royal Institution of Chartered Surveyors covering the fourth quarter of 2010 shows. It was a rise from the third quarter of +8 and is the best reading since before the onset of the credit crunch in 2007.

Meanwhile, 8% more reported a rise than fall in occupier enquiries, compared with -22 previously, suggesting that some businesses may now be looking to expand, the report says.

It points out that significantly, in the last three months of 2010, overall tenant demand for commercial property stabilised with a net balance of zero from -6. However, while the picture clearly is improving, surveyors continue to cite uncertainty over the prospects for the economy as a drag on the market.

Just 4% more surveyors saw an increase rather than a decrease in available occupier space, down from a reading of +16 in the third quarter. In the office sector, available space registered a zero net balance, the lowest since the fourth quarter of 2007. However, available space continued to edge up in both the industrial and retail segments of the market, albeit at a lesser rate, +5 and +4 respectively. Regionally, London experienced a sharp fall in supply of office space, while industrial property in the South and South East saw declines for the first time in three years.

With occupier demand broadly stabilising but available supply still nudging upwards, it is not a surprise that the headline net balance for rental expectations remained in negative territory in the fourth quarter, the report says. However, the overall reading for the office sector was slightly positive and it was particularly so in London. The net balance for rental expectations in central London climbed to +50 while across the rest of the capital, it jumped to +34.

Meanwhile, rental expectations fell back at the fastest pace in the South, and continued to decline across regional office and retail markets. The outlook for industrial rents remains relatively stable, however, and even improved in London and the South East, in part to the stronger manufacturing sector.

On the investment side, the survey shows respondents in London seeing capital values rising with the net balance increasing for the sixth successive quarter. By way of contrast the readings for the rest of the South, Midlands and North remain negative.

‘While it is true that some optimism is returning to the real estate world, the commercial market still faces significant challenges. Regional variations are becoming increasingly visible with the picture on rents and capital values broadly reflecting the emerging economic recovery,’ said Simon Rubinsohn, RICS chief economist.

‘Prime London offices are, and will continue to be, the most buoyant part of the market. Meanwhile, secondary offices around the country are a particular area of concern as oversupply will be compounded by likely consolidation in the public sector. On top of this, the general lack of new projects being initiated outside of the capital has important ramifications for regeneration in large parts of the country,’ he added.

But rents are still low. The average rent nationwide now stands at €830, 27% below the 2007 peak, the figures from property website, Daft.ie show.

In Dublin, rents in some areas are up to 2% higher than a year previously. In Cork and Galway, rents were largely unchanged over the year. In Waterford and Limerick cities, rents fell by between 3% and 4% over the course of 2010.
Outside the main cities, rents continued to decline, falling an average of 3.5% over the year. The total number of properties available to rent nationwide has fallen from a high of over 23,000 in the middle of 2009 to less than 16,000 at the start of February.

‘For any property market, be it sales or rental, urban or rural, the key condition for a levelling off in prices is clearing the overhang on the market. In Dublin’s rental market, and to a lesser extent in those of the other cities around the country, that happened over the course of 2010,’ said Ronan Lyons, economist at Daft.ie.

Across large parts of the country, however, there remains a significant oversupply on the market, which is pushing down rents, he added. ‘All eyes will be on rents in Dublin during 2011, as stable rents could indicate a stabilisation in the labour market and broader economy,’ said Lyons.

The recent economic blows in Ireland may be contributing to fewer people wanting to own property, according to independent economist Lorcan Roche Kelly. ‘Economists have long tried to explain the exceptionally high level of property ownership in Ireland through an historical lens without, for the most part, offering a situation where this cycle might be broken. There is a chance, and this would need decades rather than years worth of data to prove, that the average Irish person may have fallen out of love with home ownership,’ Kelly said.

‘Many have learned the very hard way that capital losses can mount up very quickly and purchasing a house is a decision many have come to regret. There is a chance that people may stop seeing renting as ‘dead money’ and start to see it for what it is, payment for accommodation, to be treated like payment for any utility, free of worries about such things as European Central Bank interest rates and market confidence.’

He pointed out that with house prices continuing to fall, albeit at slower levels than in previous years, yields on property, in Dublin city at least, are starting to approach investable levels for the first time in a decade.

‘As with all statistics, we need to drill into the figures a bit to get a better idea of the story on the ground. The first thing that jumps out is that the market in Dublin seems to be a little ahead of the market elsewhere, with rents in the capital showing minimal moves during 2010. In the rest of the country, the rental pressure is all to the downside, but not to an extent that should prove worrying at the moment. The smaller prices moves in Dublin are probably due to the size of that market, and the rate at which it can clear, compared to the rest of the country,’ he explained.

‘So, it would seem that after six turbulent years (rapidly rising rents cause as many, if different, problems to rapidly falling rents) the Irish rental market may be returning to an even keel. Like everyone else, renters want to have clarity on what their future expenses will be and don’t want to feel like they are over-paying for what they have. Reduced volatility in rents will provide reassurance in both cases,’ he added.

CREA expects that home sales activity will gain traction after dipping in the second quarter. ‘Even though mortgage interest rates are expected to rise later this year, they will still be within short reach of current levels and remain supportive for housing market activity. Strengthening economic fundamentals will keep the housing market in balance, which will keep home prices stable,’ said Gregory Klump, chief economist at CREA.

The national average home price is forecast to rise 1.3% in 2011 and 2012, to $343,300 and $347,900 respectively. Average price is expected to rise modestly in most provinces, reflecting the continuation of a healthy balance between supply of, and demand for, homes listed for sale.

Although the supply of new listings is expected to trend higher, the expected continuation of sellers’ market conditions in Manitoba is forecast to result in a bigger percentage increase in average price in 2011 and 2012 compared to other provinces.

Much of the optimism is due to the fact that sales in the second half of 2010 rebounded faster than CREA had previously expected. ‘The hand off going into 2011, together with the highs and lows for sales activity posted in 2010, provided guidance for CREA’s revised forecast,’ said Klump.

‘Home buyers recognize that low mortgage interest rates represent a once in a lifetime opportunity. At the same time, they expect that rates will rise, so they’re doing their homework in order to understand what it could mean in terms of higher mortgage payments down the road before they make an offer,’ said Georges Pahud, CREA president.

‘The housing market and buyer psychology is different now than it was at the beginning of last year, so buyers and sellers would do well to consult their realtor to understand local market trends,’ he added.

The upward revision to CREA’s forecast for 2011 reflects recent improvements in the consensus economic outlook and a further expected improvement in consumer confidence. National sales activity is now expected to reach 439,900 units in 2011, representing an annual decline of 1.6%.

In 2012, CREA forecasts that national sales activity will rebound by three per cent to 453,300 units, which is roughly on par with the ten year average.

‘Recent additional changes to mortgage regulations will further ensure that buyers don’t buy more home than they can afford when interest rates inevitably rise,’ explained Klump.

‘The announcement of the new changes to mortgage regulations will likely bring forward some sales into the first quarter that would have otherwise occurred later in the year, particularly in some of Canada’s more expensive housing markets. This is expected to produce a milder version of the volatility in sales activity that we saw last year which resulted from additional transitory factors,’ he

CREA added that three transitory factors contributed to volatility in sales activity last year: changes in mortgage regulations announced last February, the early withdrawal by the Bank of Canada of its conditional commitment to keep interest rates on hold until the second half of 2010, and the introduction of the HST in BC and Ontario during the summer of 2010.

Then I go to their place, I check out the whole area and I take the measurements with the Loupan, which is the big feng shui compass. Then I’ll write a report for them and go back to their house and explain what they have to do,” she says.
Alongside home owners, property developers could also be reaping the benefits of consulting a feng shui architect on the construction and interior design of their buildings.

“Property developers should choose their land based on the feng shui directions. So let’s say they want to build a commercial tower and a residential tower. Rather than going with what’s happening at the moment, they can talk with a feng shui consultant who will help them choose the shape of the building and where their departments should be.”

William Yuen, group director of P&T Architects and Engineers in Dubai has first-hand experience of the practice in both residential and commercial settings.

“I designed a big house in China for my wealthy uncle many years ago. The plan was shown to a feng shui master and I had to make some changes to make sure that the front door did not have a view of a door leading to the garden.”

He believes the long history and ever-growing popularity of feng shui promotes its feasibility, but a feng shui master should always be able to explain why he or she thinks something should be changed.

“Our headquarters in Hong Kong uses a feng shui master every year, he tells us for example which corner of the office is particularly good for a particular year and which corner that is. He will then suggest mitigating measures to alleviate the affected areas.”

Unfortunately, many property developers in the Middle East lack an understanding of feng shui, overlooking it in construction stages as a consequence. Nevertheless, some developers choose to employ the feng shui experts when the building has been completed, “I help them with designing the inside,” says Proshat, “like who should have which room, which office is better for the CEO, which is better for the financial department, which room is better for sales, where the reception area should be, which colours they should use, what type of furniture, and of course, the day they should move in.”

The owners of her past projects are constantly spreading the word, rapidly expanding Proshat’s client base in the region. “I recently had a very big client in Abu Dhabi, and I did feng shui with her office. I have clients from everywhere, the Emirates, Kuwait, Germany, Britain, Iran, lots from India, France, they’re really from everywhere.”

Despite an already strong presence, it took Proshat some time to become established, having come up against scepticism in the past.

next part III

It was through her family that Proshat was first exposed to the art of feng shui, when at ten years old she heard her mother received a phone call from her aunt.
“She was really sad; things were really going wrong in her life. She was telling my mum a friend came round to her house and said the energy there was really, really bad.”

She said, “Can I change something in here?” and my aunt said “Do whatever you want.” Some time later, Proshat became intrigued when she was informed her aunt had experienced a lot of positive change.

“I come from a very strict country, so I was always looking for something to change, I wasn’t happy with the way I was living but there was nothing I could do. So for me, it was interesting that I could maybe change something in my life.”

Proshat attended Zen yoga sessions and learned about energy, asking her trainer if he knew of anything she could do for her home. Once her trainer had changed almost everything in her home Proshat noticed a difference and her own first-hand experience reinforced the understanding she held about feng shui.

It is Proshat’s rich education and familiarity with feng shui that distinguishes her from any other feng shui consultant, wellbeing architect and lifestyle guru. “I am convinced that it is a knowledge that one has to spend years to learn and practice.”

William Yuen concurs with this perception, admitting that the further he read into feng shui, the more challenging he found it to understand.

It is testament to this passion and knowledge that her business has bloomed to the extent it has, and on which Proshat’s undoubted future success can be measured.

Top tips

• Never put your bed directly in front of the door.

• Don’t have anything sharp above the head of your bed.

• Have a peaceful or happy picture in front of your bed.

• Don’t have a TV in the bedroom. If you must, cover it before going to bed.

• Don’t have a mirror in front of an entrance.

• Use rocks, crystals or stones to energise a space.

• Try to avoid red sofas.

• All rooms should have as much natural light and fresh air as possible.

• Clear out clutter, that means getting rid of everything you don’t need.

Fortunately, using feng shui in your home or office doesn’t call for any drastic measures that aren’t to your taste. “It doesn’t necessarily have to be Chinese-looking,” says Proshat, explaining “in English, it translates as wind and water, and it’s based on the five elements; wood, water, earth, fire and metal.”

“It’s more about the point of structure. I don’t use any feng shui accessories, I don’t say put a frog underneath the sofa or turtles in front of your house. To me it’s any kind of design you want.”

In China, the birthplace of the art, the streets have all been designed using the Bagua map, one of the principles of feng shui with which the direction of structures are decided.

As Infinity is based here in the UAE, a country with no such system, one would think she was facing an impossible challenge. However, Proshat is quick to dismiss the idea, “It does work here, in any country! It’s not a religion.

“I’ve lived in China and feng shui is not a religion, it’s not a belief. It’s kind of a life view. There are two ways that things are done; in other countries people think you have to push or force yourself to get the things you want, on a personal level or a work level.

“If you get a good result or bad result, you say “okay, that’s me.” But in China they have a different way of looking at it. They try and see where the positive energy is.”

Proshat believes that this energy can be harnessed and used to improve our lives, and needn’t be a struggle. Just making decisions based on positive energy can shape lives, “They choose where they should build their building, the day they should move in, the day they should start construction, the shape of the building, the landscaping and then everything goes much easier for them. They don’t do it by chance, they choose the right time. They know that the energy in the Earth is changing, it’s a life course, and so they find where the right energy is and do everything based on that.”

A local client base reinforces Proshat’s claim that the Middle East is a good environment for feng shui. “Somebody even called me from Egypt, and I was like “wow.” It’s great how people react, local people are really interested to find out what it is.”

next part II

Feng Shui – the artistic Chinese science of design and placement is a popular method to introduce positive changes into your life. Today, it is widely used to recreate new life, smoothe relationships, balance daily life and bring energy to the home.
In the present age when relationships break for petty reasons, there are more divorces than marriages and lack of commitment, people are increasingly taking the help of Feng Shui to improve their love life and infuse passion in their relationships.

Feng Shui love guide

Here are some widely believed Feng Shui tips to activate romance in your sluggish relationship and give your lack-lustre love life a quick boost.

The best way to attract love is to adjust your environment accordingly. Dingy surroundings, piles of clutter, and self-absorbed artwork can actually drive Cupid from your door.

So roll up your sleeves and clean the place up if you want to jump-start your love life. Ring a bell, shake a rattle, or clap your hands loudly around the room to clear out old, stale energy. That means you must declutter and nothing should be stored under the bed.

Enhance your space with romance colours, such as shades of pinks, reds and whites. You can use maroon, grayish tones of pinks and whites to achieve the same results. The key is to not use any one colour so much that it overpowers the others.

Soft shades like rose, salmon and coral can attract a gentle partner who is attentive to your needs, while bold colours like scarlet, crimson and burgundy will draw a passionate adventurer to your side.

The relationship area is located southwest corner of your home. This is the direction where love reigns. This is the area to enhance, to attract new love or improve present love.

You need to energize the earth element of the Southwest by placing two pink quartz crystals along with two red or pink candles here.

Things must always be placed in pairs here. Mandarin ducks are famous symbols of lovers and potent symbol of marital bliss. Placing a pair of ducks in the Southwest corner of your living room or bedroom will activate love and marriage chi!

Artwork has a tremendous impact on the subconscious. When you surround yourself with photos, paintings, sculptures and knickknacks of solitary figures, you’ll carry yourself accordingly.

Replacing such images with representations of happy couples will make you more receptive to love.

Create cosy seating arrangements. Single chairs send a loud and clear message to prospective suitors and spouses: If you’re looking for love, putting chairs at comfortable angles to each other will signal that you’re ready for a relationship.

Keep the television out of the bedroom. If you have trouble falling asleep, try unwinding by reading love poetry or romantic novels. Your subconscious will shift accordingly, making you a virtual love magnet.

Treat yourself to sensual bedding. That old ratty pillow from college and those serviceable sheets aren’t doing you any good.

Go ahead and splurge on pillows, blankets and sheets that invite you to linger in bed.

Downsize from a king to a queen. Sleeping on a huge mattress won’t cultivate intimacy. Invest in a comfortable queen-sized bed if you’d like to find the love of your life.

Prepare for company. If you are single, clear out one of your dresser drawers, leave some empty hangers in the closet, and keep an extra toothbrush in the bathroom.

When you demonstrate you are willing to share your space with someone special, your romantic prospects will soar.

Pull your bed away from the wall. Pushing your bed against the wall effectively crowds out any chance for lovers to enter your life. Arrange your bed so that it has enough space to walk on either side.

Your bedroom represents your romantic life. Family pictures, holy objects, children’s artwork and toys will also undermine your intimate life.

Celebrate these relationships in other areas of your household, but keep your boudoir as a private retreat.

Remove or cover any mirrors in the bedroom. A mirror facing the bed from any side (ceiling, wall, closet door, dressing table) reflects the couple on the bed. This could create a failure in the relationship or marriage due to a third party interference or infidelities.

Feng Shui – the artistic Chinese science of design and placement is a popular method to introduce positive changes into your life. Today, it is widely used to recreate new life, smoothe relationships, balance daily life and bring energy to the home.
In the present age when relationships break for petty reasons, there are more divorces than marriages and lack of commitment, people are increasingly taking the help of Feng Shui to improve their love life and infuse passion in their relationships.

Feng Shui love guide

Here are some widely believed Feng Shui tips to activate romance in your sluggish relationship and give your lack-lustre love life a quick boost.

The best way to attract love is to adjust your environment accordingly. Dingy surroundings, piles of clutter, and self-absorbed artwork can actually drive Cupid from your door.

So roll up your sleeves and clean the place up if you want to jump-start your love life. Ring a bell, shake a rattle, or clap your hands loudly around the room to clear out old, stale energy. That means you must declutter and nothing should be stored under the bed.

Enhance your space with romance colours, such as shades of pinks, reds and whites. You can use maroon, grayish tones of pinks and whites to achieve the same results. The key is to not use any one colour so much that it overpowers the others.

Soft shades like rose, salmon and coral can attract a gentle partner who is attentive to your needs, while bold colours like scarlet, crimson and burgundy will draw a passionate adventurer to your side.

The relationship area is located southwest corner of your home. This is the direction where love reigns. This is the area to enhance, to attract new love or improve present love.

You need to energize the earth element of the Southwest by placing two pink quartz crystals along with two red or pink candles here.

Things must always be placed in pairs here. Mandarin ducks are famous symbols of lovers and potent symbol of marital bliss. Placing a pair of ducks in the Southwest corner of your living room or bedroom will activate love and marriage chi!

Artwork has a tremendous impact on the subconscious. When you surround yourself with photos, paintings, sculptures and knickknacks of solitary figures, you’ll carry yourself accordingly.

Replacing such images with representations of happy couples will make you more receptive to love.

Create cosy seating arrangements. Single chairs send a loud and clear message to prospective suitors and spouses: If you’re looking for love, putting chairs at comfortable angles to each other will signal that you’re ready for a relationship.

Keep the television out of the bedroom. If you have trouble falling asleep, try unwinding by reading love poetry or romantic novels. Your subconscious will shift accordingly, making you a virtual love magnet.

Treat yourself to sensual bedding. That old ratty pillow from college and those serviceable sheets aren’t doing you any good.

Go ahead and splurge on pillows, blankets and sheets that invite you to linger in bed.

Downsize from a king to a queen. Sleeping on a huge mattress won’t cultivate intimacy. Invest in a comfortable queen-sized bed if you’d like to find the love of your life.

Prepare for company. If you are single, clear out one of your dresser drawers, leave some empty hangers in the closet, and keep an extra toothbrush in the bathroom.

When you demonstrate you are willing to share your space with someone special, your romantic prospects will soar.

Pull your bed away from the wall. Pushing your bed against the wall effectively crowds out any chance for lovers to enter your life. Arrange your bed so that it has enough space to walk on either side.

Your bedroom represents your romantic life. Family pictures, holy objects, children’s artwork and toys will also undermine your intimate life.

Celebrate these relationships in other areas of your household, but keep your boudoir as a private retreat.

Remove or cover any mirrors in the bedroom. A mirror facing the bed from any side (ceiling, wall, closet door, dressing table) reflects the couple on the bed. This could create a failure in the relationship or marriage due to a third party interference or infidelities.

Dubai Having completed a massive mixed-use development and just got the utility connections in place for it, a local developer is gearing up for one final bout of activity. And that could well be the hardest part.

The South Korean company Bando Housing Corp, the developer of the U-Bora Towers in Business Bay, will shortly start marketing about 100 residential units that were left unsold when the local property market crashed in late 2009. There are 225 apartments making up the residential portion of the property, and the ones that were sold during the peak fetched Dh1,200 a square foot and more.

“We are looking at a base asking price of Dh1,000 a square foot and more on the available units and given the quality of the build — and location — are hopeful of finding buyers soon,” J.M. Park, project manager for U-Bora Towers said. “By early March, all of the finishes will be in place and the apartments will be ready to move into.

“Business Bay is one of the best locations for a mixed-use development, and ours enjoy a prime spot. I am sure potential buyers will appreciate that.”

It’s not just Bando’s hopes that are riding on the upcoming sales push.

In effect, the developer is testing the waters on behalf of quite a few privately-owned projects in Business Bay that are to be completed over the next 12 to 24 months.

The key factor is whether there are enough buyers out there willing to commit at Dh1,000 a square foot and more in that master development.

Market observers see as soft buying interest persisting in the cluster, based on the belief that as more projects get completed, prices will continue to be under pressure.

Many options available

But after a slow start, Business Bay is starting to attract a growing base of residents, many of them on rental arrangements. These are predominantly at the Dubai Properties’ developed Executive Towers.

“Even if we don’t find buyers for all of the units, there are options available to us, including renting out unsold units,” Park said.

On the actual development side, there are many plusses U-Bora Towers notched up along the way. Built at a cost of $450 million (Dh1.65 billion), the project was delayed by more than a year.

But unlike many single-development projects from other promoters launched at the same time, including one in Business Bay involving another South Korean major, this one made to the finish line.

The pick-up happened with Bando assuming full control of the construction side as well. It’s extensive experience in this line back in its home market helped a good deal. “The costs were kept in control throughout, but never at the expense of quality,” Park said.

Just as important, the bulk of the buyers who bought in before the crisis also stayed the course. This involved South Korean investors who had acquired the office units.

“Very few exited because of the crisis and that to us was a major plus,” Park said. “A commitment was made at the launch of the project by our parent company that we will see it through. We have kept our promise.”

According to him, there weren’t any major cost savings to be had for the project because of the dip in key building materials.

“Prices were always moving up and down and not possible to lock in any supplies at a lower value,” said Park.

With U-Bora Towers out of the way, the chances are that the developer will look at other possibilities in Dubai.

If that happens, it would again be in the role of developer and contractor. “We now have the hard won experience to make it work again,” Park said.

Supplied picture

Picking up

After a slow start, Business Bay is starting to attract a growing base of residents.

spaced out

Latest On offer

With a plot area of 19,833 square metres, the U-Bora Towers is among the more substantial ones in Business Bay. The built-up area is 228,400 square metres with offices taking up 97,900 square metres and residences another 37,000 square metres.

“We the people of Al-Nakheel district cannot sleep peacefully until the strategic Umm Al-Khair dam is repaired and ready to withstand flash floods. You cannot wait indefinitely to rebuild the burst dam. Allah alone knows when the next flood hits the area,” said resident Muneer Al-Otaibi.

He added that schools in the district should not be relocated.

“What we should do is make the district totally safe so that schools can operate here instead of shifting to safer places,” he said.

The residents also fear that they would be affected by dengue fever, which is likely to spread in the district unless the small and big pools formed after the flood have been dried up or disinfected, Haleel Al-Malki, another resident, said.

The dry silt and mud on the streets and other places are likely to cause asthma or other allergic ailments to kids, Al-Malki pointed out.

However, Riyadh Saeedi said he nearly forgot all his sufferings over the past half a month after returning homes.

“We feel like life has returned to normalcy, especially when we see our children going to school. However that does not mean that everything is OK here. There are a lot of things to be done.”