photo credit: MACSURAK

US tycoon Donald Trump is to sell one of the world’s most expensive penthouses as part of his venture into the UAE property market. Nakheel and the Trump Organisation have received bids for an exclusive property in Trump International Hotel and Tower on Palm Jumeirah.

Public sales of residences in the tower have now begun, with some units fetching as much as $2,450 per sq ft. Trump has announced he has even reserved a unit in the tower for himself, such is his confidence in the development.

Mr Trump said:

“I have created some of the world’s most spectacular buildings and hotels, but my project with Nakheel will be one of the most impressive undertakings I have ever been a part of.

“I’m thrilled with the early sales of the residences and I plan to reserve a property in the Tower for myself. I can assure you that the hotel will be a destination in itself, providing a stunning centrepiece to the skyline of Dubai.”

The 62-storey, stainless steel and glass Trump project will be the tallest structure on Palm Jumeirah and is expected to be completed in summer 2011.

The 399 residences and townhouses will be offered in three categories, the Platinum Collection, the Titanium Collection, and the Pinnacle collection.

A survey of potential UK property investors has uncovered an opinion split over whether now is a good time to invest in property. The first quarterly Property Tracker poll from the Building Societies Association (BSA) found 51 per cent of people believe now is not a good time to invest.

However, 27 per cent of people agreed that the current period is an opportune moment to splash out. The new survey will also track which factors are currently considered to be the greatest barriers to house purchases, with most mainly worried about being able to keep up repayments on a property.

BCA director general Adrian Coles said:

“People often view property buyers as a single group. However, the Property Tracker survey shows that is not the case, and while most people don’t believe now is a good time to buy, more than one in four people believe the opposite.

“A significant proportion of respondents said expected future falls in property prices are a reason not to buy. However, the fact that a lack of job security was relatively unimportant in preventing property purchase suggests that concerns about the wider economy are not currently undermining the housing market.”

The BCA represents the entire UK building society sector and expects to publish its next set of Property Tracker figures in September.

A property development billed as a ‘Las Vegas of the Emirates’ has been cancelled, leaving property investors scrambling to get their money back.

The government of Ajman has pulled the plug on the Dh2.3 billion PKN Princess Resort project, according to Gulf News, and over the weekend urged interested parties to make their claims directly to the property developer.

People who have purchased properties as part of the project have until June 30 to make their claims, according to the news site. Gulf News reports:

“According to the statement from the Ajman government, the project located in Al Manama area was cancelled on June 15.

“The government of Ajman and PKN Procurement jointly decided to end their relationship in the project.”

No further details on the cancellation were to be found on either the development’s home page or that of the Ajman government yesterday.

The development was first unveiled last year and was to feature a gated community of luxury villas and a Las Vegas style entertainment centre in the Manamah area of the Emirate.

Initial estimates put the completion date of the project at the end of next year. Max Paxima, chairman of the resort, was quoted by AllBusiness in November last year, saying

“the project is both stunning and appealing because of its overall value and quality and location.”

“Add to that star power and the entertainment opportunities that we are privileged to be bringing to this hemisphere like never before, well, it’s not only historical, in Vegas tradition, it’s magical”.

A body set up to scrutinise the plans for new UK eco-towns has laid down a series of points for property developers to follow after some home builders were warned about a “lack of innovation”.

The 15-member Eco-towns Challenge Panel includes experts in design and environmental issues, meant to advise property developers as they come up with ideas for the new towns.

It will not decide which plans make the final shortlist of up to ten potential locations, a task left to MPs after public consultations. Housing minister Caroline Flint said:

“I have been clear from the start that only those bids that reach the highest possible standards for sustainability can make it through.

“This process was meant to be a challenging ride for the developers, and they need to be open to the creativity of these ideas. Some clearly need to up their game and the ball is now in their court.”

The panel includes TV presenter and green-lifestyle specialist Joanna Yarrow and Sir Peter Hall, president of Town and Country Planning Association. The new recommendations for developers include setting out more clearly how transport strategies will reduce traditional car travel.

Panel chairman John Walker said:

“We want the final eco-towns to be better than the best of the current examples that do exist in the UK and the rest of Europe - clearly there is still a lot of work to do.”

Locations on the initial 15-strong eco town shortlist include Manby Park in the East Midlands and Rossington in Yorks and Humber.

US property developer Donald Trump has predicted the UK housing market slowdown will not end up as bad as has been seen in America. Mr Trump told The Times the US crisis had been caused by over-building, a problem said to not be so severe in the UK.

Mr Trump is currently in the middle of dealing with an inquiry into his ambitious plans to build a golfing resort by the sea in Aberdeenshire, Scotland. Called Golf Links Scotland, the development is earmarked for a three-mile stretch of coastline near Balmedie.

Mr Trump told the Times:

“The property market will continue to fall until the credit crisis ends. I think that will be in the next 12 months.

“The problem with the US market is nothing to do with supply and demand, it is because people cannot get credit.”

He also told the paper

“a lot of downside has already taken place”

, adding

“now, I tell people to buy real estate. There are real opportunities now“.

Mr Trump has previously told Sky News that the planned two-course development, also featuring a five-star hotel, would make the local area “environmentally better”. Many local people are opposing the plans, while some local businesses are in favour of the project.

A lack of power and water could threaten investments in some UAE property developments, it has been claimed. According to Gulf News, a senior federal government official has expressed concerns projects in the northern Emirates could end up without utilities due to planning shortfalls.

Quoted by the site, Hassan Abdullah Al Ghasyah, executive director of Supply at the Federal Electricity and Water Authority (FEWA), said construction in the area was broadly “unplanned”.

According to Gulf News, Mr Al Ghasyah said:

“Local government authorities have not coordinated on precise water and power requirements with Fewa.

“However, according to the cabinet decision, Fewa is committed to a minimum 8 per cent annual growth in power and water demand.”

Around 300 towers in the Ajman, Umm Al Quwain and Ras Al Khaimah areas are thought to be most at risk of the problem. Zawya also reports the Northern Emirates are experiencing an acute gas shortage, while the wider UAE also has less severe shortfall problems.

Iran may provide a source of extra gas supplies, although it is thought the country is afraid of running out itself.

A poll of UK property buyers has revealed most believe the current downturn will last around one to two years. Research from FindaProperty showed 33 per cent of buyers felt the current slump will last about 12 months while 32 per cent said it was more likely to be two.

A further 20 per cent believed the downturn could last even longer. However, buyers also appeared to be confident about the sector’s medium to long-term picture. FindaProperty content editor Michael O’Flynn said:

“The figures here make very interesting reading. The majority think house prices will fall by ten to 15 per cent and on average feel the current problems will last around a year or two.

“According to Nationwide, we have already seen a fall of -4.4 per cent, so the process is already well underway.”

He added most respondents to the poll thought house prices in the UK would be more expensive in five years, suggesting people “still have faith” in the housing market and view it as a good investment.

The survey also asked buyers what measures could be taken to hasten recovery, with suggestions including interest rate cuts, price falls and the abolition of stamp duty. A loosening of lending criteria was seen as the most popular option, gaining 29 per cent of the vote.

Instability in the UK housing market could have been caused by unrealistic home ownership expectations, an expert has said. The Chartered Institute of Housing (CIH) said the UK needed to learn lessons from the US sub-prime lending crisis.

The group also said “insufficient knowledge” of mortgages had also caused millions of Americans to lose their savings and end up with poor credit ratings. CIH chief executive Sarah Webb said:

“The nation often seems obsessed with home ownership.

“While it is important that we help people to fulfil their aspirations, the evidence clearly shows us the state, lenders and individuals must take a responsible stance and make sure they take the right housing choice for them.

“We need to support people to make the best, not the worst, choice. If you are one of the 45,000 people that get their first home repossessed this year then owner occupation won’t have proved to be the route to personal wealth.”

Dr Ian Shepherdson, a commentator on the US economy, recently addressed the CIH annual conference. He forecasted a gloomy outlook for the UK economy, saying the credit crunch was likely to continue well into 2010.

Property investors with interests in one US city suddenly saw the value of their stocks rise this week thanks to statistics from the FBI. The bureau has revealed Irvine, California, is the country’s safest big city for the fourth year in a row.

Officials use uniform crime reporting figures to name the most trouble-free metropolis, with records showing Irvine has less violent incidents per capita than any US location with more than 100,000 residents.

Real estate firms from the area were understandably delighted.

Tom Veal of the Irvine Community Development Company said safety is one of the “most important considerations” when American families are choosing a place to live. His firm is an affiliate of The Irvine Company, a 140-year-old real estate planning, development and investment business.

The group is best known for the Villages of Irvine, the “balanced, sustainable communities” it has planned and built in Orange County, California. A ‘master plan’ of future developments is still being followed by the firm, which is planning to build Laguna Crossing of the county’s Laguna Canyon Road.

Units are set to go on sale in 2010 and are expected to prove popular with families as 90 per cent of children in the area go on to college after finishing high school.

Work has begun on an exclusive gated community in Saudi Arabia which straddles a picturesque lake in Eastern Province. Prince Mohammed Bin Fahad Bin AbdulAziz Al Saud, governor of the area, broke ground on the project, named Al Khobar lakes.

Described as a “master plan community”, the development will feature more than 2,000 villas in a series of nine villages. Eng Alaa Abdullah Saed, of developers Emaar Middle East, said:

“Al Khobar Lakes is the first lake front gated community and the largest in the region, and will contribute to socio-economic prosperity by creating new job opportunities for the local population.

“The various components of the project will also support local industries and the service sector in general.”

The 4.3 million sq metre project also features 11 mosques, schools, a shopping centre and healthcare facilities. Eng Saed added:

“The launch of the first residential village in the first phase was a sell-out success, and we have launched the second village, Al Ghadeer, ahead of schedule.”

Hand overs are expected to start before the end of 2010, with Prince Mohammed, a member of the Kingdom’s ruling dynasty, reportedly confident it will contribute to his region’s growth. Eng Saed also said Al Khobar lakes was a “path breaking” development for the country as it bids to become one of the world’s top ten economies.