Asteco Property Management - NEWS BRIEF 42 …ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY...

DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2017 asteco.com | astecoreports.com

IN THE MIDDLE EAST FOR 30 YEARS

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

NEWS BRIEF 42 SUNDAY, 15 OCTOBER 2017

DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN | KSA

© Asteco Property Management | 2017 | asteco.com

IN THE MIDDLE EAST FOR 30 YEARS



REAL ESTATE NEWS

UAE / GCC

REAL ESTATE CONSULTANCY TAKES AN INTEREST IN SCHOOLS

GOING ABOUT LAUNCHING BUSINESSES AND TACKLING LIABILITIES

THE THREAT OF E-COMMERCE

THE HEALTH OF YOUR ASSET

TENANTS SPOILT FOR CHOICE

ALIGNING DEVELOPER AND INVESTOR EXPECTATIONS

NEW TOOLS OF THE TRADE

TECHNOLOGY IN COMMERCIAL REAL ESTATE

THE LURE OF MORTGAGE

WHEN INVESTING IN REAL ESTATE, THINK LONG TERM

DON’T LOSE YOUR HOME

SHUAA CAPITAL, ROTANA OPEN SECOND SAUDI HOTEL

6,303 FACTORIES RUNNING INVESTMENTS OF DH103B IN UAE

5% VAT TO CREATE 5,000 JOBS UPON INTRODUCTION ON JAN 1

UAE TO OUTPACE REGIONAL GROWTH, SAYS IMF

VALUE OF PROPERTY SHARES ON UAE STOCK MARKETS SURGES TO

DH43.8BN IN 9 MONTHS

DUBAI

INFRASTRUCTURE SPEND TOPS DH7.5B AT DEIRA ISLANDS

THREE DAY CITYSCAPE RUN NETS DH870M FOR DUBAI PROPERTY

JUMEIRAH GETS READY FOR ITS NEXT BEACHFRONT HOTSPOT

FINE & COUNTRY LINES UP SIENNA VIEWS

DIFC SET TO UPGRADE INTO A TRUE LIFESTYLE DESTINATION

BUYING READY PROPERTY IN DUBAI

WHEN I BUY PROPERTY

DEYAAR’S HOSPITALITY EXCURSION

HIGHER VACANCIES FORCE DUBAI LANDLORDS TO NEGOTIATE ON

RENTS

AL GHURAIR PROPERTIES IN DH5B BUILD-UP SPREE

DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN

© Asteco Property Management, 2017 asteco.com |

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DEFINING LANDSCAPES SINCE 1985



REAL ESTATE NEWS

EMIRATES HILLS VILLA TAKES CROWN WITH DH95M DEAL

MORE VACANCIES FORCE DUBAI LANDLORDS TO NEGOTIATE ON RENTS

DUBAI PROPERTY FOR UNDER DH1 MILLION

ENBD REIT ACQUIRES SIGNATURE INTERNET CITY BUILDING

AIRBNB REVENUE SOARS 421% IN DUBAI

DEVELOPER AWARDS DH400 MILLION CONTRACT

DUBAI TENANTS WELCOME HOME HANDOVERS AS RENTS DIP

GOT DH500,000 TO SPARE? OWN A HOME WITH A GOLF COURSE VIEW

DEMAND INCREASES FOR DAMAC UNITS NEAR EXPO SITE

PALM JUMEIRAH VILLA TENANT IS REFUSING TO MOVE OUT OVER

DEPOSIT ROW

ABU DHABI

ALDAR TO DELIVER HOMES TO CUSTOMERS THIS DECEMBER

ABU DHABI GDP WILL HIT DH850 BILLION IN 2017: S&P

NORTHERN EMIRATES

SECOND ROUND OF SALES TO OPEN AT SHARJAH’S BIGGEST PROJECT

HERE'S YOUR CHANCE TO LIVE IN SHARJAH'S MEGA PROJECT

RAK AND LUXEMBOURG DISCUSS CO-OPERATION AND INVESTMENT OPPORTUNITIES

INTERNATIONAL

TO STAND THE TEST OF TIME

EMAAR LINES UP NEW PROJECTS IN GURUGRAM, EXPECTS MARKET

REVIVAL SOON

ACCORHOTELS CLINCHES $1B DEAL TO BUY MANTRA

MALABAR LAUNCHES RS30B RESIDENTIAL PROJECT IN KERALA

POUND'S FALL FAILS TO FUEL LONDON LUXURY HOME SALES

IS NOW THE TIME FOR GULF INVESTORS TO BUY LONDON PROPERTY?

OFFICE VACANCY RATES DIP TO 12.9 PERCENT IN THE U.S.

WITH FAST RISING RENTS IN U.S., HOUSING VOUCHERS DON'T KEEP

UP



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REAL ESTATE CONSULTANCY TAKES AN

INTEREST IN SCHOOLS Wednesday, October 11, 2017

The property consultancy Cavendish Maxwell is hitting the books — it has set up an education

department to assist investors planning to build school assets.

“What we are really seeing here is the maturing of the education market and as part of this we are likely

to enter a period of consolidation creating significant opportunities as well as many challenges for

investors, school operators and landowners,” said Mark Ryder, specialist adviser for education, valuation

and advisory at the firm.

“Cavendish Maxwell has extensive school funding expertise and is able to put operators, investors and

landowners together to respond to the market and regulatory opportunities.”

It has been involved in the sale and leaseback transactions for school properties.

At the end of the last academic year, Dubai had 173 private schools with a capacity for nearly 300,000

students. The KHDA (Knowledge and Human Development Authority) has made it a goal of increasing

this number by 20 per cent by the academic year 2019-20.

A further 10 schools are likely to open between now and end 2018. Since 2014, 40 new schools have

opened in Dubai, of which 15 opened in September 2016 alone.

“The new for profit entrants to the Dubai market will be disruptive as they have learnt lessons from

schools opening over the last few years and have focused on filling gaps and differentiating themselves,”

said Ryder. “There are certainly gaps for schools focusing on International Baccalaureate programmes,

bi-lingual teaching, mid-fee tuition rates and special needs. It doesn’t necessarily follow that the new

comers will be the casualties of a competitive market.”

Source: Gulf News

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GOING ABOUT LAUNCHING

BUSINESSES AND TACKLING

LIABILITIES Wednesday, October 11, 2017

Company formation has been among the most frequently asked questions in the UAE. Given the

dynamic business culture the country actively fosters, it is worth examining the various options for

potential business owners, as well as the recent options made available for companies experiencing

difficulty to maximise their effectiveness.

The standard options facing a prospective business owner is whether to incorporate in the mainland

where (for the most part, barring a few exceptions), the expatriate owner owns 49 per cent of the

business, or at free zones where the expatriate owner retains complete ownership.

There are a number of free zones, each catering to a specific number — of activities that are allowed,

and for the most part, each free zone has its own regulator, which governs and administers the

companies that have incorporated there.

The DIFC and the ADGM are the most sophisticated and regulated among all the free zones, and have

their own set of laws that are not governed otherwise by UAE laws. But it is important to note that other

free zones have their own rules that have become nuanced as regulations have evolved.

Common among these regulations (whether free zone and/or mainland) is the presence of a physical

office (barring a few free zones where the option of a “flexible desk” is given) is required. And also the

issuance of a trade licence that clearly defines the activity the company can undertake.

Guiding principles

The founding documents of the company (whether sole proprietorship, private or public joint stock

company) then sets the stage for encapsulating not only the business activity but the liabilities that the

owners are subject to. From these foundational documents, subsequent contracts — ranging from

employment to trademark to the normal business contracts — then flow forth.

While the nuances of each may be different depending on the jurisdiction, the overall guiding principles

essentially remain the same. It is prudent to note that in order to foster the culture of entrepreneurship,

company formation is relatively a hassle-free exercise, with companies being formed far quicker than in

most other jurisdictions of the world.

It is for these reasons that foreign investment has continuously been on the rise, as business start-up

activity has risen consistently over time regardless of the sector that one is looking at.

Under the new Federal Bankruptcy Law which came into effect in December last, there has been some

comfort given to businesses (under certain circumstances) that are facing financial difficulty, which

would not compel them to flee the country. It gives both debtors some legal comfort towards

restructuring of debts, as well as allows business owners to navigate through their financial difficulties

without necessarily having to face criminal action.

The passage of this law provides considerable flexibility to the business sector to deal with the vagaries

of market cycles, and fosters an environment of an orderly dissolution should the need arise. While this

law is recent, it has already started to have positive effects on the SME sector, as it has allowed for a

more orderly format of restructuring certain liabilities, a trend that will only continue to gather

momentum.



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Disputes

It is pertinent to remember that document retention needs to be kept in mind when closing a company,

or for that matter, when disputes arise. In the UAE, the Commercial Transactions Law (Federal Law

Number 18 of 1993) sets out requirements for the retention of commercial records, and mandates that

they should be kept for a minimum period of five years from date of receipt or issuance.

Given the complexity of the marketplace, and the need for shielding liabilities, as well as having the

optimal jurisdiction for the type of business that needs to be undertaken, it is well worth it for aspiring

business owners to seek and retain legal counsel as they navigate the process of setting up an entity, Or

when going through the turbulence of business cycles.

In the final analysis, regardless of how flexible the regulatory architecture is, ignorance of the law can

never be considered as an excuse to extinguish liability.

Source: Gulf News

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THE THREAT OF E-COMMERCE Wednesday, October 11, 2017

While e-commerce is still at an early stage in the GCC and accounts for only a fraction of total online

sales in Europe, the Middle East and Africa, its rapid penetration increased last year, posing a threat to

traditional brick-and-mortal retail. Global consultant AT Kearney predicts the e-commerce market in the

GCC to grow to $20 billion (Dh73.46 billion) by 2020, up 277 per cent from $5.3 billion in 2015 — a

staggering increase in the space of just five years.

Mega-deals in the GCC, including Amazon’s acquisition of Dubai-based online retailer Souq.com in March

for $650 million, certainly show the potential for growth. This deal will give Amazon access to millions of

customers and an established distribution and logistics infrastructure in the Middle East. In addition,

mega e-commerce platform Noon.com was recently launched. Although it has been delayed by more

than eight months, the hype around the deal gives some insight into the exciting future of retail.

Online shopping is certainly seeing a wave of big investments in the GCC and retail landlords are not

prepared to let retailers be the only ones to benefit from this trend.

For instance, in May we saw Emaar Malls (owner of Dubai Mall) buy a 51 per cent stake in Dubai-based

fashion e-commerce site Namshi from Rocket Internet’s Global Fashion Group for $151 million. Emaar

Malls will help develop Namshi’s logistics infrastructure and global expansion, adding to Emaar Malls’

digital-driven strategy.

Majid Al Futtaim Holding has chosen an organic route to build its presence in the online space by

differentiating the customer experience and delivering a seamless integration between physical and

digital offerings as part of their long-term strategy. This means investments in digital wallets, last-mile

delivery, and other organic platforms. For example, Majid Al Futtaim has announced a partnership with

logistics start-up Fetchr that allows customers to have their shopping delivered from the mall to their

homes or hotels.

Although online retail is gaining traction, it is probably a lesser threat to physical shopping than it is in

Europe. This is because malls offer more than just a shopping opportunity to visitors in the GCC. A visit

to the mall is a family outing, especially in the hot summer months, offering various leisure,

entertainment, and even touristic experiences like Dubai’s famous indoor ski slope or aquarium and zoo.

However, the slowdown in economic growth certainly represents a challenge for retailers and retail

landlords in the GCC this year.

Pressure has arisen from lower oil prices, which has, in turn, subdued the hiring and expansion plans of

companies exposed to the oil industry. Non-oil private companies’ business activities have also softened,

decreasing consumer purchasing power. The region is bracing for the roll-out of a 5 per cent value

added tax (VAT) that will increase the overall cost of living. Details of what will be subject to VAT have

only just been revealed with the law stating that goods and services are subject to VAT at a standard

rate of 5 per cent, albeit with some exclusions including preschool and school education, basic

preventative healthcare, goods and services exported outside of the GCC, international flights from the

UAE, gold and some other precious metals and residential property.

Retailers and their landlords also stand to be negatively affected by more cost-sensitive tourists this

year, particularly in Dubai. Negative currency exchange rates render shopping more expensive for most

international visitors, with the US dollar strengthening further against most currencies this year. The

currencies of Saudi Arabia, the UAE, Qatar, Oman, and Bahrain are pegged to the US dollar. Kuwait’s

dinar is pegged to a basket of currencies including the US dollar and the euro. Despite evidence of

weaker tenant sales accentuated by low oil prices, currency appreciation, and lower tourist purchasing

power, retail rent seems to be more or less flat versus 2016 as reported by the regional real estate

companies S&P Global Ratings public rates. This is especially true for high quality assets in good

locations.



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However, future supply may soon reverse this trend. According to real estate and investment

management company JLL, retail supply in Dubai is expected to grow more than 25 per cent by 2020,

up from 17 per cent growth for the past four years. Excess supply in the retail market will no doubt put

downward pressure on rents.

Additionally, lower purchasing power, job insecurity, the potential impact of VAT and the likely impact of

e-commerce have the potential to make GCC retail landlords more cautionary.

Source: Gulf News

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THE HEALTH OF YOUR ASSET Wednesday, October 11, 2017

Property investment is one of the biggest investments that people make in their lifetime. While location,

price, unit layout and amenities all form an integral part of the buyer’s decision-making process,

knowing about property maintenance and the long-term health of the asset is also an essential element

that investors often neglect. This tends to affect the asset value in the long run.

Tariq Chauhan, Group CEO of EFS Facilities Services, says that the role of facilities management (FM) is

quite significant in the life cycle of any built environment. He adds that property owners should know the

breakdown of the service charges, specifically the FM costs and service level agreements therein.

“Buyers, while investing in property during the off-plan stage, fail to get into the details of the FM or

service costs. They are only engaged at a later stage once the property has been bought. But by then

any concerns and worries about the FM or services costs will have very little effect,” says Chauhan.

“Therefore, it is important that buyers should know the actual services as per the service level

agreements [SLAs], and FM best practices, and there must be a clear and transparent understanding

between the buyer and builder on the scope of services on various requirements. All developers should

provide the scope of FM services in their SLAs. The cost component of each service should also be

mentioned specifically.”

Strategic FM

Robert Jackson, director at the Royal Institution of Chartered Surveyors (RICS) Middle East and North

Africa, says the role of FM is greatly misunderstood in the region, adding that the strategic facility

management is not facilities maintenance.

“Strategic FM can help maintain or enhance the capital value of built assets,” he says. “It can drive

operational performance from the asset, as well as deliver appropriate environments for end users so

that residents remain happy and loyal and corporate occupiers can focus on maximising their

productivity in a workplace, which is managed by others to create a conducive environment for

maximum workplace productivity.”

He says buyers should ask the asset owners about how the facility is managed and check the funding

provisions — whether they exist or are being accrued to repair or replace high capital value equipment

or infrastructure.

Jackson explains that the early involvement of FMs, even in the design stage of a building, will add

significant value to a property market. “This will only benefit the end user and create confidence in the

market that will help drive continued sustainable investment,” says Jackson. “FMs need to be considered

as strategic delivery partners and contracts need to be encouraging more collaborative relationships and

over a longer-term period so FMs can add innovative solutions, which increase the value to both clients

and end users.”

Benefits

Markus Oberlin, CEO of Farnek, says that early introduction of FM helps minimise the impact of design

and build issues, and ensure the maintainability and operability of the building or development for the

lifespan of the project.

“Generally, FM is often viewed as an unnecessary expense at the early stages of a project and,

therefore, there is limited access to incorporating FM services. However, the fact is utilising FM at the

early stages actually saves money in the long run,” says Oberlin.

Positive change

The role of FM in the initial stages of construction and design is currently becoming a reality with visible

impact in the strategy of many developers. “A lot of emphases is being placed on the attainment of



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value for money, end user satisfaction and the delivery of improved buildings that are economical to

run, stress-free for the occupiers to maintain, control and manage, and easy to respond to the

maintenance needs of the occupant,” says Chauhan.

He adds that the impact of FM on the success of the built environment is rapidly becoming a reality and

is evident that sustainable design and construction contribute to the creation of facilities that are energy

efficient, less costly over their life cycle and enhance end-user experience.

“In many surveys conducted recently in the construction industry, it is concurred that the active

participation of facilities managers during the planning, design and construction phases ensure that the

strategic role of FM is not undermined and sustainable built environments are strengthened,” says

Chauhan. “It is critical to propagate the involvement of FM from the design process through to handover

and its subsequent roles in the project life cycle. We need to define the role of facilities manager in the

building design phase and examine the techniques and issues, which will ensure the role of FM in the

design process to be a permanent and useful one.”

As per international practice, FM providers have seven- to 10-year contracts with developers, however,

Chauhan says this is not followed in the Middle East.

“Short-term contracts restrict companies to appropriately invest in critical mobilisation costs such as

investments in equipment, machinery, technology, etc., to achieve the goal of FM and sustainability of

the building,” he says. “Therefore, long-term contracts will help investors to write off critical initial

investments over a longer period as well as meet supply chain management challenges due to frequent

contract life cycles.”

Source: Gulf News

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TENANTS SPOILT FOR CHOICE Wednesday, October 11, 2017

Real estate pundits agree tenants are now in a much better position when negotiating contracts with

their landlords. In the prevailing market environment, many landlords are compelled to offer incentives

to entice new tenants or hold on to existing ones.

“Gone are the days when tenants feel pressured to take the first place that becomes available,” says

Craig Plumb, head of research at JLL Middle East and North Africa (Mena). “There is a wide choice of

units available at most price points, which increases the bargaining position of tenants.”

Some landlords have had to reduce rents or increase the number of instalments and others offer

freebies or waive maintenance and other costs.

“Landlords are increasingly offering furnished units without increment, rentals inclusive of Dewa bills, or

rent-free periods for up to two months,” adds John Stevens, CEO of Asteco. “Landlords are also relaxing

on the number of rent cheques, with some reverting to a more Western-style of monthly payments.”

There are multiple factors that have contributed to the paradigm shift. Low oil prices and a sluggish

economy have resulted in cuts in government expenditure and consequent layoffs at state-linked

companies. Impacts of a softening global economy, redundancies in the oil and gas, finance and banking

sectors have also stunted the demand for property.

Meanwhile, real estate development has posted a healthy growth rate. In Dubai particularly, new

projects continue to be announced. Furthermore, many delayed projects are being resumed and locked-

in properties are being released, further increasing supply in the market.

According to Asteco, the total residential supply in Dubai is anticipated to reach around 27,200 units this

year. This compares to 13,750 handed over last year. Abu Dhabi will see an additional 3,100 units

entering the market by year end.

“Even if not all of these units materialise due to construction delays and phasing, we expect that a large

number of these dwellings will be offered to the market on ‘discounted’ rates to encourage take-up,”

says Stevens.

Add-on benefits

As the sluggish rental market continues, Mario Volpi, chief sales officer of Kensington Luxury Real Estate

Brokers, says tenants will continue to enjoy greater leverage. For landlords, it is prudent to try to retain

existing tenants as additional floor space is being added to the market. Going through long void periods

or losing quality tenants can be a big headache for any landlord, thus, many who are seriously affected

by the present market conditions are more amiable to renegotiating the terms of lease.

Some villa tenants in Dubai, for example, are getting maintenance cost waived where such an expense

would normally have been paid by the tenants. There are now rent-free periods wherein tenants get 13-

14 months on a 12-month lease. “In Dubai, tenants are getting the landlords or developers absorb

broker fees, which earlier was paid by the tenant,” adds Stevens.

This has resulted in a wide array of choices based on price, payment terms, location and other

incentives such as rent-free periods, free maintenance costs and waived broker fees.

However, Volpi puts it in perspective: “Tenants are not necessarily driven to move by these sweeteners

alone, but by their own time frames and individual motivations.” As landlords try to avert void periods,

new projects, especially larger ones, are being offered at a lower prices to ensure speedy take-up. This

has pushed the rates further down in the traditionally preferred inner areas.

The growing bargaining power of the tenants is playing a major role in determining the prices of

property. The situation is expected to persist as rents will likely continue to soften until 2020.



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Abu Dhabi

“Rentals in Dubai have fallen further than those in Abu Dhabi as the market is more liquid and there is

greater competition between developers,” says Plumb.

Given there are fewer players in Abu Dhabi, landlords have tried to maintain higher rents, although in

recent months Plumb says Abu Dhabi has seen a greater fall in rents than Dubai “as the demand has

softened significantly and vacancies have increased in even the more sought-after locations”.

Villa communities in both Dubai and Abu Dhabi have seen prices reduce the most, while apartments

haven’t fared any better either.

Volpi points out that Abu Dhabi’s villas have seen a reduction of between 7 per cent in Al Raha Beach to

12 per cent in Al Raha Gardens during the second quarter compared with the same period last year.

Apartment rents have dropped in the range of 8 per cent in areas such as Shams Abu Dhabi to 14 per

cent in Corniche.

Stevens says that apartment and villa rents in one of the affordable developments in Abu Dhabi such as

Al Reef are going down 10-11 per cent compared with last year. Rents for low-end units located in the

inner city areas such as Hamdan Street, Khalidya and Murur and in the mainland such as Mohammed

Bin Zayed City and Khalifa City are now around 12 per cent lower than last year.

Dubai villas also witnessed a reduction of between 12 per cent in areas such as Al Barsha to 16 per cent

in Springs. Apartment rents have gone down by 9 per cent in Greens to 14 per cent in Business Bay.

As a result, tenants are able to secure rents that are 13-17 per cent lower than what they were a year

back in established villa communities such as The Springs, Jumeirah and Arabian Ranches, according to

Asteto figures.

Spoiled for choices, tenants are also driving a location shift to newer areas. “Tenants are weighing up

the pros and cons of leaving what is considered a prime central area like Dubai Marina for newer

developments a little further out like Mira,” says Russel Owen, head of agency in the UAE at Chestertons

Mena.

He says rents for an average two-bedroom villa in Dubai Marina is now between Dh130,000 and

Dh140,000 per year, whereas three-bedroom town houses with gardens in Mira and Mudon are leasing

at around Dh140,000. “More clients, specifically those in the 30-40 age group, are moving away from

Dubai Marina and starting homes in these more family-orientated communities,” says Owen.

Lease terms

The slump in prices has come as a much-needed relief for the tenants as landlords are now only too

willing to accept payments in four to six cheques. This was unheard of earlier, but is the norm in a

number of areas now.

“Market conditions have served to strengthen the negotiating position of many residential and

commercial tenants,” says Stevens.

In a number of cases, existing tenants renegotiating for better terms upon expiry of their contracts. If

landlords are unwilling to offer better terms, many tenants now are no longer averse to relocating in

search of more attractive terms. Stevens expects this trend to continue for some time.

“We do not expect the market to recover until economic sentiment improves in line with increased

government spending, further implementation of diversification strategies and the anticipated gradual

rise in oil prices,” he says. However, a Chestertons report notes that the market has started to level off

and will remain flat in the coming months. “We are expecting to see upward growth in Q3 2018 as we

head into 2020,” says Owen. In the meantime, tenants should find ways to take advantage of the

additional supply across apartments, villas and offices and look for better deals.

Source: Gulf News

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ALIGNING DEVELOPER AND INVESTOR

EXPECTATIONS Wednesday, October 11, 2017

Many people decide to buy off-plan real estate when looking for a new home or for an investment as it

may represent good value when compared with ready built property. Buying off plan may also allow the

investor to buy at current prices and benefit from any upward movements in the market while also

getting a stepped payment plan. After agreeing the price, off-plan buyers typically pay a deposit of

around 5-10 per cent to the developer. Additional payments shall then be made through the

construction process and sometimes payments after completion and handover may be agreed.

If prices in the market are rising then the chances are that the property will have already proven to be a

good investment by the time construction has been completed and the property is handed over. A rising

market cannot, however, be guaranteed. In addition, while purchasers and investors may get the benefit

of cheaper pricing than ready built properties, developers may pass off some of the risk of delays in the

construction programme to the purchaser or investor. Such delays are far from unusual and accordingly

represent an important risk for anyone buying off plan. As the property is not built another risk is that

the property does not conform to the purchaser’s expectations once delivered.

The risks referred to in the previous paragraph have been mitigated to some extent in Abu Dhabi and

Dubai through real estate laws, which require developers to fully disclose the nature of their investments

and provide feasibility studies as to their viability.

Notwithstanding such laws, it remains prudent for purchasers to do their research before any off-plan

purchase. They should make enquiries to find out if the developer has a good name for completing off-

plan projects on time and in accordance with the specifications and good industry practice. Developers

with good reputation will usually not want to risk harming their reputations due to hand-over delays or

quality issues. It is worthwhile to visit properties that the developer has already completed, whether in

the different phases of the same project or in another development, to check on the standards of

finishings.

In addition purchasers should request a disclosure pack containing full details of the specifications that

will be included with their property purchase. It is recommended that developers ensure this pack is

comprehensive, accurate and easy for buyers to understand as this will reduce the chance of disputes

later. Moreover disclosure gives the developer the chance to demonstrate to purchasers the amenities of

the building. Purchasers may also want to ensure that their sale and purchase agreement affords them a

right of inspection of the property prior to handover. Such clauses often allow the purchaser and the

developer to jointly prepare a list of defects and repairs, known as a snagging list. If the parties dispute

the snagging list or any timeframe in which to rectify the defects, commonly the developer’s consultants

will have the final say as to what is required.

Regardless of whether a right of inspection is included in the sale and purchase agreement, pursuant to

the UAE Civil Code, the contractor will remain liable to fix defects for one year in the case of fixtures and

fittings and 10 years in relation to structural defects and the laws of Dubai and Abu Dhabi require that

the developer has the same obligations towards purchasers. Finally, it is important that purchasers are

aware that selling real estate off-plan is a regulated activity and should ensure that the developer is

registered with the relevant authorities, has established an escrow account for the project and is entitled

to sell off-plan.

Source: Gulf News

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NEW TOOLS OF THE TRADE Wednesday, October 11, 2017

Construction, it seems, is an industry stuck in a time warp. While other industries — from retail to

manufacturing — have transformed their efficiency, boosted productivity and embraced the digital age,

construction has struggled to evolve its approaches. As a result, productivity has suffered in a sector

where $10 trillion (Dh36.73 trillion) a year is spent on buildings, infrastructure and industrial

installations.

In fact, if the industry can lift construction productivity to the same level as that of the total economy, it

could generate an additional $1.6 trillion.

These observations are from a February 2017 analysis by McKinsey Global Institute (MGI). The report,

Reinventing Construction: A Route to Higher Productivity, observes, “Significant advances that are either

being deployed or prototyped today can transform the effectiveness and efficiency of construction in

three main areas: digital technologies, advanced materials and construction automation.”

McKinsey points out that companies can put themselves at the cutting edge by using platforms such as

5D BIM to establish transparency in design, costing and progress visualisation. Besides, they can use

digital collaboration tools, deploy drones for scanning and mapping, or exploit advanced analytics

enabled by the Internet of Things (IoT) to improve on-site performance. And yes, they can leverage

smartphone apps or mobility tools to track progress and collaborate in real time.

Underinvestment in IT

The report adds, “MGI’s productivity survey indicated that the biggest barriers to innovation by

construction companies are underinvestment in IT and technology more broadly, and a lack of research

and development processes. Establishing innovation officers can make a difference for technology

adoption.”

Nonetheless, the roster of organisations making the most of technology is rapidly growing, especially in

the UAE. “Honestly, the UAE government is championing in the space of technologically advanced

architecture,” says Paul Murphy, director of interior design at Draw Link Group. “We can see some

spectacular construction across the city — DIFC and D3 for example.”

Murphy also points to 3D printing — “a tangled web of technologies, materials, new processes and

capabilities” — that has already begun transforming the real estate sector with the ability to produce

individual tailored pieces at a fraction of the cost, while reducing risks and making alterations easy.

“With the capacity to personalise and bring to life virtual objects, the demand for 3D-printed artwork will

only continue to grow. This technology has put the design back into a designer’s hand,” insists Murphy,

adding that even if whole buildings aren’t 3D-printed, it’s likely that pieces of future buildings will be.

Some companies such as ZAS Group are now using new techniques and technologies such drone

photography in conceptualising projects and conducting feasibility studies. “We also use 3D printing to

print physical models in some of our projects. It’s faster and a more economical option,” says DJ Armin,

managing partner of ZAS Group. Similarly, deploying Revit software for BIM has delivered improved

design quality and savings in time and money for the firm and its customers.

Armin is also excited about the potential of virtual reality (VR) and augmented reality (AR) to “facilitate

the real estate industry like never before”. During the pre-construction phase, 360-degree renderings

can help visualise unfinished projects.

“You can also design or create hotspots to allow for interaction with customers. They can modify and

make custom changes to design as they wish and see the results immediately,” says Armin, adding that

in the post-construction phase, VR and AR can omit geographic and time constraints — clients do not

have to travel long distance to see a place. They can even visit several places in a short time.



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Homebuyer’s app

An impressive example is the Really! home purchasing app, a prototype developed in cooperation with

Emirates NBD and the SAP Co-Innovation Lab in the UAE. Targeted at homebuyers across the globe

looking at investing in the UAE, the app combines beacons, SAP in-house virtual, augmented and mixed

reality solutions, Dubai Municipality’s geographic addressing system Makani and customer loan

information from Emirates NBD.

As Hichem Maya, head of industries at SAP Middle East and North Africa, explains, “Buyers can narrow

options by cost, proximity to schools, shops, restaurants and hospitals, commute time and

demographics, and take virtual tours of homes and floor plans, while sitting in the comfort of their

homes.” App users can also check Dubai housing trends to calculate the down payment, loan type and

amount, and connect with a loan agent.

Maya believes cloud solutions are making a major impact in the Middle East real estate sector, as

companies look to have real-time business visibility. “Using Big Data analytics, real estate firms can

have a dashboard with historical and predictive trends across customer purchasing decisions,

neighbourhood property trends, and building performance, which combined lead to better decision-

making, productivity and revenue,” he says, noting that with the Expo 2020 Dubai boosting real estate

interest, UAE real estate companies need to run in real-time on the cloud so they can improve building

performance with transparency and alignment, gain key insights into crucial building performance data

and comply with the latest government leasing standards.

Looking ahead, Maya predicts that the real estate sector will be further impacted by artificial

intelligence, blockchain, machine learning and IoT. “Taken together, these technologies can lead to

automated, more secure and predictive customer trends, freeing up staff to focus on core business,”

says Maya.

Armin notes that IoT has already made inroads, with many buildings having some level of intelligence

built in — from security, fire safety to lighting and HVAC systems.

“Different sensors can track and monitor movement, air flow, light, water pressure, temperature, while

Building Management Systems can analyse, act or react to other machines and users,” says Armin. “This

allows better management of operations, security and energy. It also facilitates occupant comfort.”

Source: Gulf News

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TECHNOLOGY IN COMMERCIAL REAL

ESTATE Wednesday, October 11, 2017

Technology’s impact on the UAE’s real estate market and economy extends far beyond modern, trendy

offices housing tech firms. With increasing numbers of consumers turning to e-commerce, more

consumer goods may be found in UAE warehouses than in retail stores in the future. The UAE has been

lagging the rest of the world where e-commerce has been 2.6 per cent of total retail sales versus 7 per

cent globally in 2015, according to Chalhoub Group’s 2017 Luxury White Paper.

“Dubai Chamber of Commerce has stated that the value of Dubai’s retail sector is expected to be $71

billion (Dh260.78 billion) by 2021 from $56.6 billion by end of 2016, growing at a compound annual

growth rate (CAGR) of 4.9 per cent,” noted Charles Swanson, Knight Frank surveyor, commercial

leasing. “According to estimates from 2015 by AT Kearney, GCC e-commerce sales could increase from

$5.3 billion to $20 billion by 2020. The result of this shift in consumer shopping habits is a change in the

commercial real estate environment, as we will see the need for more distribution depots and smaller

formats of retail stores.”

According to Nour Suliman, CEO of DHL Express for the Middle East and North Africa, the change in

consumer habits provides enormous opportunities for logistic companies. There are over 4 million online

buyers in the region, and this is set to rapidly increase with an expanding population that is surpassing

world average growth rates. There is also a predominantly young population, especially in GCC countries

which are more tech-savvy and prone to online purchases.

A pan-Arab government body is preparing to release a five-year strategy it claims will help grow the

region’s e-commerce sector to $200 billion beyond 2020.

As the demand for warehouse increases, warehouses are being built with larger footprints and higher

clearance heights than ever before. In fact, the average size of new warehouses has been increasing.

Many retail/industrial occupiers are now conducting multiple operations under one roof, such as brick

and mortar store inventory replenishment and online sales fulfilment.

Logistics companies have also been experimenting with drone delivery of goods, which has proved

successful in remote areas. For example, in Rwanda UPS has successfully been operating a fleet of

drones delivering key medical supplies and blood to pregnant women suffering from post-partum

haemorrhaging. This enables supplies to reach remote areas in less than 30 minutes, saving countless

lives.

Dubai’s workforce is young by global demographic standards, with an average working age of 25 to 35.

The population of people aged 15-29 years old has grown by 7 per cent from 2000-15 and for Dubai to

attract international young talent, it will need to remain competitive with its global peers such as London

and New York, which have emerged as tech hubs.

No form of real estate is exempt from the exponential expansion of technology. Technology is pushing

change in space use, locations and demand levels at an accelerated pace.

Source: Gulf News

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THE LURE OF MORTGAGE Wednesday, October 11, 2017

Dubai is predominately a cash-driven real estate market. Yet, the current buyer-friendly phase

(attractive property rates and high rental returns) has resulted in a substantial increase in mortgage

transactions in comparison to the same period last year.

According to Srinivasan Padamanabhan, a business manager for mortgages at Mashreq, approximately

1,200 customers per month are buying homes with mortgages in the UAE market. “The property prices

in premium, well-developed communities in the UAE are still affordable as compared to similar

properties in some of the developed cities like New York, London, Singapore, etc. Buyers also look at

rental yields available on properties, which are attractive in this place,” he says.

He also observes that the trend in the market is for end users to look at longer-term solutions on their

mortgages, such as fixed-rate options for two years. He says such options ease the initial cash flow

requirements for customers by helping them plan their expenses while moving into their dream home.

Market opportunities

For the first-time buyer, the current market offers the right opportunity to buy his own home instead of

paying rent. Padamanabhan says, “A one-bedroom apartment in a decent well-developed community is

rented around Dh80,000. The price of such an apartment would be around Dh1.2 million with an

approximate equated monthly instalment (EMI) of Dh6,300 per month amounting to an annual cash

outflow of Dh76,000. The equation to own an asset with the same cash flow is indeed compelling for

first-time buyers.”

For the investors, developing communities within the UAE offers attractive rental yields of 7-8 per cent

on the property value. “Considering the loan to value of 75 per cent offered on a property, the effective

interest being paid is likely to be 3 per cent,” says Padamanabhan. “Therefore, a prudent property

investment in a fast-developing community can provide a net yield of 4-5 per cent post interest

payments. Such a return is unique to the UAE market and is secure considering there is an asset that is

likely to provide capital appreciation as well.”

Sawan Karia, managing director of Home Matters, says property is universally regarded as a safer form

of investment than equity markets. “With bank deposits yielding virtually zero return, rental yields can

offer significantly higher returns to buyers. For example, when you buy a two-bedroom apartment in the

Greens for Dh2 million with a mortgage of Dh1.5 million over 25 years, the monthly mortgage cost is

Dh7,712 or Dh92,544 per year. A conservative rental return of Dh130,000 per year offers a good return

while also providing capital growth prospects.”

Bank rates

The end users and investors both have good reasons to make real estate investment in this lucrative

market, and market experts also point out that the bank’s lending offers further allows the buyers to

acquire an asset at a good deal. According to Dhiren Gupta, managing director of 4C Mortgage

Consultancy, “The mortgage market is still quite appealing with the current bank offered rate

[promotional rate], which most banks are proposing to the customers. In spite of the surge in Emirates

Interbank Offered Rate (EIBOR) pricing, banks somehow managed to keep the lending rates low with

the bracing period of 2-5 years. This attracts buyers and encourages them to purchase the property on a

mortgage. Moreover, current market dynamics are prone to end-user investment, hence availing a

mortgage facility is ideal to facilitate the property purchase.”

EMI payment

Gupta considers Dubai a buyer-friendly real estate market and the base sale price of properties in the

resale section gives privilege even to current tenants to convert their rental payment into monthly

purchase instalments. “Considering, if one is paying an annual rent of Dh60,000 for a one-bedder, paid



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on quarterly payment. So on the current prevailing interest rate of 3.49 per cent on a 25-year term, if

he plans to buy a property worth Dh1 million, his monthly instalment for a loan amount would be around

Dh3,750, keeping 75 per cent funding of the property value. Hence, we can see the difference in the

monthly rent of Dh5,000 vs EMI of Dh3,750 towards the mortgage loan.

“However, what’s required here is the self-assurance of paying for home loan EMI rather than rental

payment. It is also important to analyse whether you have a secure job, your lifestyle, family planning,

extra cash cushion for the down payment and other related annual service fees.”

He also adds that the rental price further makes real estate investment alluring. The rent is on the

higher side whereas the property sale price is stagnant or comparatively small in the secondary market.

Also, for off-plan construction, developers are offering lucrative payment plans, which allow investors to

book the unit with minimal booking fee.

Affordable housing

Gupta explains, “Most buyers these days are first-timers who want to get into property market

investment within the range of Dh1 million to Dh2 million or less. The demand for affordable housing is

much higher as compared to the luxury section. The salaried segment is keen to invest in property as

they can save on the rental amount, which is usually higher than the monthly mortgage repayment.

Dubai Marina, Jumeirah Village Circle, Dubailand, Downtown, Jumeirah Lakes Towers, and Discovery

Garden are still attracting buyers from different segments.”

Source: Gulf News

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WHEN INVESTING IN REAL ESTATE,

THINK LONG TERM Monday, October 09, 2017

Renting an apartment can be a hassle-free experience, more so if it is furnished. You can live in a house

of your dreams, while the landlord is responsible for maintenance and repairs. The rationale for renting

an apartment is compelling. It costs a lot less in terms of time, effort and money. Additionally, getting

out of a tenancy contract is significantly easier than getting out of a purchase contract. Furthermore,

with the UAE residential rental market stabilising and the influx of new inventory, there are several good

offers for buyers.

This is emphasised by figures from the Dubai Land Department (DLD): 68 real estate projects were

launched and registered during the first half of the year, accounting for 8,000 transactions worth Dh21

billion. Additionally, CBRE, a commercial property and real estate services adviser, noted that Dubai

tenants were able to negotiate cheaper deals during the previous year. Apartment rents have gone down

nearly 10 per cent in some areas and will remain under pressure with 31,500 apartments and 12,500

villas planned this year.

Long-term benefit

While renting seems attractive, buying property in the current market can actually benefit you in the

long term. It usually makes sense to buy only if you plan to stay here for five to seven years and can

afford the up-front and back-end costs. Up-front costs include a 25 per cent down payment if it is your

first home, 4 per cent in DLD fee, 2 per cent broker’s commission and various financing processing and

admin overheads. For off-plan, buyers usually need to secure 50 per cent of the property value.

However, developers are introducing attractive payment plans upon handover or post handover, which

amounts to 75-80 per cent of the purchase price. This makes off-plan attractive, considering capital

appreciation usually occurs during handover. Many investors are seeing such avenues for growth; the

DLD recently noted an increase in property handovers and off-plan projects. Over an 18-month period

ending in July, the DLD recorded Dh86 billion from 63,903 transactions.

An attractive market

Expatriates are attracted to UAE real estate as it is significantly cheaper than cities such as New York,

Hong Kong or London. The average price in Dubai is Dh1,000 per square foot, while in other global

centres, it could go as high as $1,000 (Dh3,670). Here, every property class can be a good investment.

Studios in key areas such as Palm Jumeirah, Downtown Dubai, Dubai Marina, Jumeirah Beach

Residence, Business Bay and Reem Island in Abu Dhabi are easy to rent out and can be sold quickly as

well. There is also rising demand for affordable housing. As companies cut housing allowances, people

are looking at affordable accommodation in Abu Dhabi and Dubai.

Nearly half of realty transactions in Dubai last year were priced less than Dh1 million, with an 8 per cent

rise in “affordable housing” business.

This Cityscape offers a good opportunity for investors to keep an eye out for attractive real estate deals,

as developers are expected to offer exclusive bundles and discounts at the event, for the first time.

Source: Gulf News

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DON’T LOSE YOUR HOME Monday, October 09, 2017

A sudden job loss is emotionally and financially stressful. If you are saddled with a loan obligation, it

creates further financial havoc in your life. Apart from the monthly mortgage payments, the thought of

losing your home is devastating. There are steps you can take to prevent mortgage default if you

suddenly become unemployed.

Inform the lender

It is a huge mistake when you don’t tell your bank about not having a job any more. “It puts the

customer at more risk in the long run,” explains Iqbal Sheikh, head of consumer banking at Ajman

Bank. “Banks assess each case individually to identify and offer realistic solutions.”

The buyer should also look into other sources of income, including emergency funds, to stay afloat, says

Sheikh. “It is also worth considering a co-signer who can make the initial set/minimum required

payments. However, the most important thing is not to forget to update your bank about your

termination.”

Work out solutions

A defaulting customer can increase overdues and impact the bank’s financial books. Thus, banks would

rather work out solutions with a customer, says Imran Ahmed, product manager at Sharjah Islamic

Bank. “Unlike other loans, home finance is a secured loan, which is backed up by the property collateral

itself,” says Ahmed, noting that a bank can reduce the monthly instalment, defer payments until the

customer gets a new job or extend the loan tenure to reduce the instalments. Although this is not

beneficial over the long term of the loan, it can prove useful in reducing cash outflow.

Avoid new debt

Additional debt should only be considered if the finance needs to be restructured to cover existing

outstanding and settle past due amounts,” says Sheikh. “And this should be a last resort.” The customer

should also stay updated on the bank’s policies regarding change of employment and repayment.

Build a buffer

When exiting a company, there is usually a one-time settlement amount. This must be used to build a

buffer. “Do not spend this amount on wasteful expenses and use it as an emergency corpus to ease

financial burden,” says Ahmed.

Dip into savings

Calculate your total available savings, including severance package, unemployment benefits and any

emergency saving, and create a basic budget. Next, figure out how long you can afford to make your

mortgage payments before you run out of money. If you have enough money to last six to eight months

and you’re optimistic about finding a new job, you can try living off your savings for a short time.

Set a provision

Always keep an emergency fund of six to 12 months. “All current homeowners and future mortgage

borrowers should also consider insurance, especially when they are making significant and long-term

financial commitments,” says David Harris, director of distribution at RSA Insurance.

Insurance is not expensive as many might wrongly think, says Harris. The annual cost of an insurance

cover would be approximately Dh750-Dh1,644. “The very rationale here is to provide customers with

peace of mind when the unexpected happens,” he says.

Source: Gulf News

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SHUAA CAPITAL, ROTANA OPEN

SECOND SAUDI HOTEL Wednesday, October 11, 2017

Shuaa Capital and Rotana will open the second hotel, Centro Waha Riyadh, in Saudi Arabia.

“This is the second hospitality project to be developed courtesy of the Sharia-compliant Shuaa Saudi

Hospitality Fund I and under the Centro by Rotana brand in the Saudi market,” Shuaa Capital said in a

statement.

The new hotel includes 290 rooms, studios and hotel suites.

Rotana currently operates more than 1,200 keys in the Saudi hospitality market, in addition to 880 hotel

keys under development, all as part of Rotana Group’s plans to expand strategically in the Saudi

market.

Source: Gulf News

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6,303 FACTORIES RUNNING

INVESTMENTS OF DH103B IN UAE Wednesday, October 11, 2017

Up to 6,303 factories have been running investments worth more than Dh103.1 billion in the UAE until

the end of 2016, a top Ministry of Economy official told Emirates News Agency, Wam.

"The food and beverage industry accounts for 30 per cent of the total volume of the country's industrial

sector followed by the primary mineral industries with 24 per cent, the non-metallic raw products

industry with 14.9 per cent, refined oil products with 6.6 per cent, the chemical industries with 6.5 per

cent and the metallic product industries with 5.5 per cent," Abdulla Al Saleh, the Under-Secretary for

Foreign Trade and Industry at Ministry of Economy, told Wam on the sidelines of the UAE-Saudi

Business Forum, held on Wednesday in Abu Dhabi.

The UAE and Saudi Arabia come in the16th position globally in terms of GDP, with both countries

accounting for 48 per cent of the total Arab GDP, he said, adding that Saudi Arabia is the UAE's fourth

major world trade partner, comprising 4.6 per cent of UAE's non-oil trade in 2016 and the country's top

Arab partner, making up 43 per cent of UAE's non-oil trade with GCC states and 27 per cent of UAE's

non-oil trade with all Arab nations.

Under the slogan 'Together Forever', the UAE-Saudi Business Forum was held under the patronage of

Sultan bin Saeed Al Mansouri, Minister of Economy, and Dr Majid Al Qasabi, Minister of Commerce and

Investment in KSA. The event saw the participation of more than 1,000 officials, investors and

entrepreneurs coming from the two countries. The forum included three sessions that covered key

discussions on the national transformation plans under UAE Vision 2021 and KSA Vision 2030; industrial

integration and the role of women in the economy. The forum also discussed key ways on how to

enhance cooperation across eight main sectors, including industry, tourism, oil, aviation, construction,

financial services, food stuff, gold, jewellery, medicines and medical equipment.

The forum is part of the joint retreat called 'Khalwat Al Azm'. The outcomes of the event are aimed at

enhancing trade, economic and investment cooperation, strengthening ties and opening new investment

channels to promote diversification of sources of income, attracting value added investments and

increasing the volume of non-oil exports. The forum was organized by the Ministry of Economy, Abu

Dhabi Department of Economic Development and Abu Dhabi Chamber of Commerce and Industry in

cooperation with the Higher Corporation for Specialized Economic Zones (ZonesCorp).

Al Mansouri delivered the opening speech wherein he expressed his pride in the sincere brotherhood

between the UAE and KSA, which represents a unique example of cooperation at the Gulf and Arab

levels, openly demonstrated by the continuing efforts to enhance stability and growth of the region.

Al Mansouri pointed out that the bilateral relations between the UAE and KSA are still witnessing

continuous development and growth, driven by the firm will and sincere determination of the leaderships

of the two countries - led by the President His Highness Sheikh Khalifa bin Zayed Al Nahyan and the

Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud - to advance cooperation and

synergy between the two countries across various fields of development.

"The UAE-Saudi Business Forum is a vital platform for further achieving greater economic, trade and

investment cooperation, based on a joint strategy that focuses on investing in the development

prospects and capabilities of the UAE and KSA, which are the two largest Arab economies, as well as

benefiting from their huge commercial and investment potentials," he noted.

Source: Khaleej Times

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5% VAT TO CREATE 5,000 JOBS UPON

INTRODUCTION ON JAN 1 Wednesday, October 11, 2017

Paul Drum, head of policy at CPA Australia and an expert in tax law, has said that it is anticipated that

around 5,000 finance and accounting jobs will be created within the GCC region with the introduction of

value-added tax (VAT). Looking for a job in Dubai? Start your search here

In a workshop at the University of Wollongong in Dubai, UOWD, on the new tax law, Drum said that VAT

has been implemented by more than 150 countries worldwide.

Referring to local job openings, Drum said VAT brings good news to current finance and accounting

students and graduates as this form of taxation will create ample employment opportunities.

Government revenues from taxation are generally used to pay for public services including public health

services, publicly owned or funded schools, parks and transport infrastructure.

"The UAE will apply a VAT rate of 5 per cent on taxable supplies which is very low in comparison to the

average tax rate of 19 per cent globally. However, not everything will be charged VAT as the law makes

provision for zero-rated and tax exempted goods and services to ensure that the impact of VAT on

consumers is kept to a minimum," Drum explained.

The consumer will be taxed on goods such as electronics, smartphones, cars, jewellery, certain

beverages, financial and accounting services, legal services, dining out and entertainment. However,

certain services and goods, such as nearly 100 food items, basic health services, transport and public

education, will be exempted from VAT.

Drum explained that the difference between zero-rated and exempt tax is that suppliers of zero-rated

goods and services are eligible to reclaim their input VAT, whereas suppliers of exempt goods are unable

to do so. Zero-rated and exempted goods and services have no direct impact on the consumer.

Businesses with a minimum turnover of Dh375,000 are required to register for VAT, while companies

with a turnover of below the mandatory threshold but exceeding the voluntary registration threshold of

Dh187,500 have a choice to register. Voluntary registration will be especially beneficial to start-up

businesses with no turnover at present. It is essential for VAT registered businesses to keep their

business records as proof of tax charged and VAT they have paid to the government.


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UAE TO OUTPACE REGIONAL GROWTH,

SAYS IMF Tuesday, October 10, 2017

The International Monetary Fund (IMF) has said that the UAE economy will grow 3.4 per cent in 2018, at

the second fastest growth rate in the GCC, while an upswing in the world economy would likely gather

pace into next year.

The improved outlook for the UAE follows a predicted 1.3 per cent growth in 2017 as low oil prices

continued to impact all regional economies. Kuwait will record the fastest growth within the GCC at 4.1

per cent in 2018 following negative growth of 2.1 per cent in 2017.

"Fuel exporters are particularly hard hit by the protracted adjustment to lower commodity revenues,"

the IMF said in its World Economic Outlook report on Tuesday.

The fund said that the risk of low oil prices is affecting the economic outlook of the regional economies.

As a result, Saudi Arabia will grow at 0.1 per cent 1.1 per cent respectively in 2017 and 2018, Bahrain

at 1.5 per cent and 0.8 per cent, Kuwait -2.1 per cent and 4.1per cent, Oman 0.0 per cent and 3.7 per

cent, and Qatar at 2.5 per cent 3.1 per cent.

"We expect to see a further pick-up in non-oil growth in 2018 and beyond as investment momentum

builds ahead of Expo 2020," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

Maurice Obstfeld, IMF Economic Counsellor and Director of Research, said while the global recovery is

continuing at a faster pace, the picture is very different from early last year, when the world economy

faced faltering growth and financial market turbulence.

He insisted that ambitious reforms were necessary for continued poverty reduction as the current

moment presented a fleeting opportunity to act.

In all, the growth of Mena oil exporters Iran, Iraq, Algeria and the six GCC states is forecast to end this

year at 1.7 per cent from 5.6 per cent in 2016.

Mena growth as a whole is projected to more than halve in 2017, from 5.1 per cent to 2.2 per cent, "on

the back of a slowdown in the Islamic Republic of Iran's economy after very fast growth in 2016 and

cuts in oil production in oil exporters", the IMF said.

The Washington-based fund projected the price of oil to average $50.3 a barrel in 2017, higher than the

previous year, but will remain in the 50s until 2022.

Regional oil exporters have lost hundreds of billions of dollars in revenue since crude prices began to

slump in mid-2014

The IMF's GDP growth projects for the UAE are more or less in line with those given by Citigroup Global

at 1.7 per cent and 3.3 per cent; Emirates NBD at 2.0 per cent and 3.4 per cent; HSBC at 2.0 per cent

and 2.6 per cent and JPMorgan at 1.6 per cent and 3.1 per cent, respectively for 2017 and 2018,

according to the latest Focuseconomics report.

The latest World Economic Outlook has upgraded its global growth projections to 3.6 per cent for this

year and 3.7 per cent for next-in both cases 0.1 percentage point above our previous forecasts, and well

above 2016's global growth rate of 3.2 per cent, which was the lowest since the global financial crisis.

"We see an accelerating cyclical upswing boosting Europe, China, Japan, and the United States, as well

as emerging Asia," said Obstfeld. In July, the IMF said the introduction of a five per cent value added tax

(VAT) from January 2018 would not have a "significant adverse impact" on growth. In July's outlook, the



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growth forecast for next year was lowered one percentage point to 3.4 per cent from 4.4 per cent in

April, owing to an easing of oil growth to 3.2 per cent, compared with 6.2 per cent in the April forecast.

The IMF said for 2017, most of its upgrade owes to brighter prospects for the advanced economies,

whereas for 2018's positive revision, emerging market and developing economies play a relatively

bigger role.

"While most of the world is sharing in the current upswing, emerging market and low-income commodity

exporters, especially energy exporters, continue to face challenges, as do several countries experiencing

civil or political unrest, mostly in the Middle East, North and sub-Saharan Africa, and Latin America,"

said Obstfeld.


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VALUE OF PROPERTY SHARES ON UAE

STOCK MARKETS SURGES TO

DH43.8BN IN 9 MONTHS Friday, October 13, 2017

The value of real estate shares traded on UAE stock markets during the first 9 months of 2017

amounted to AED43.8 billion, accounting for 34.6 percent of the total transactions conducted on the

country's two main bourses since the beginning of the year, which is estimated at AED126.6 billion.

The growing trading share boasted by the real estate sector reflects the investors' growing confidence in

the sector in light of the volatility suffered by other trading companies' shares, according to market

analysts.

In the meantime, official market statistics indicated that property transactions worth AED31.8 billion

were conducted at the Dubai Financial Market since January through the end of September, making up

to 37 percent of the total transactions, estimated at AE86.6 billion.

Property deals on Abu Dhabi Securities Exchange hit AED12 billion by the end of September, comprising

29.4 percent of the total volume of trading, put at AED40.7 billion.

Emaar led property shares with transactions estimated at AED8.6 billion, accounting for 27 percent of

total real estate deals on DFM, followed by Arabtec with transactions worth AED6.8 billion, and Union

Properties with AED 6.3 billion.

Eshraq Properties came first on ADX with transactions worth AED6.6 billion, accounting for 55 percent of

total realty deals on the capital's bourse while Aldar trading stood at AED3.8 billion, and RAK Properties

at AED1.6 billion.

In total, property deals on the country's two main bourses were valued at more than AED20 billion

during Q1 2017, AED14.3 billon of which on DFM.


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INFRASTRUCTURE SPEND TOPS DH7.5B

AT DEIRA ISLANDS Thursday, October 12, 2017

The spend on infrastructure and related projects for the Deira Islands cluster has now topped Dh7.5

billion, according to Nakheel, the developer. It follows a Dh165 million contractual award to APCC Piling

and Contracting to build the marinas, which will accommodate 614 boats and yachts of up to 60 metres

long. Construction will begin this quarter itself with delivery expected over the next two years.

“We are investing billions to deliver Deira Islands and transform Dubai’s Deira district into a world-class

hub for tourism, retail, leisure and entertainment,” said Ali Rashid Lootah, Nakheel’s chairman.

“Our new coastal city, being developed in line with the Government of Dubai’s vision for 2021, paves the

way for hundreds of hotels, residences and attractions, many of which we are developing ourselves

under our business diversification strategy.”

Deira Islands will eventually have a resident population of 250,000 and will add 40 kilometres —

including 21 kilometres of beach — to Dubai’s coastline.

In August, Nakheel confirmed new contracts worth Dh430 for Deira Islands, and in April the company

announced another for Dh4.2 billion to build Deira Mall, located at the heart of the development.

Source: Gulf News

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THREE DAY CITYSCAPE RUN NETS

DH870M FOR DUBAI PROPERTY Thursday, October 12, 2017

Three days and Dh870 million – that was the tally notched up at last month’s Cityscape Global in Dubai.

For the first time in nearly a decade, the organisers allowed exhibitors to sell directly from their stands.

The sales surge came as UAE developers doubled down on their sales promotions tied to the event, both

for brand new projects as well as the release of new phases at existing ones.

The three-day run pulled in 45,500 visitors, up 20 per cent from last year. More good news potentially

awaits local developers.

According to Informa, the event organiser, 66 per cent of the surveyed visitors stated they intend to

make a purchase or do business with a company onsite, while exhibitors were expected to generate on

average Dh22 million as a result of participating in the event.

According to Tom Rhodes, Exhibition Director for Cityscape Global, “It was encouraging to see such an

influx of participants this year, and with the number of deals being made on-site. It was evident to see

that the attractive offers, and flexible payment plans being promoted by exhibitors appealed to all

visitors at the show.”

Among the exhibitors to have had a good run were Azizi Developments, which sold out the phase one

units at its Dh12 billion waterfront project in MBR City. Aldar’s Water’s Edge project generated Dh400

million in sales from the first phase.

Source: Gulf News

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JUMEIRAH GETS READY FOR ITS NEXT

BEACHFRONT HOTSPOT Thursday, October 12, 2017

The first phase of La Mer — set within one of Meraas’ string of new beachside destinations for Dubai —

will open on October 15.

Stretching right out into the ocean at Jumeirah 1, La Mer will span 13.4 million square feet of existing

and reclaimed land located between Pearl Jumeirah and Jumeirah Bay. It will be home to multiple F&B

and niche retail operators.

The La Mer design does not use any of the tried-and-tested formula the city has seen. Instead, it is built

integrating the water and sand elements. It is inspired from the “way the sea embraces driftwood,

timber, rusted metal, barrels and other items, brought by the tide to shore,” the developer says in a

statement.

And many of these form the “main elements” of the built-up environment. This theme is visible through

the architecture and public spaces.

“The destination reaffirms our commitment to contribute to Dubai Tourism Vision 2020 by diversifying

what Dubai has to offer,” said Abdullah Al Habbai, Group Chairman at Meraas. “It has already proven a

popular location for some of the world’s top brands, and will strengthen Dubai’s position as a global

shopping and tourist city.”

Day rooms and cabanas will allow visitors to have prime beachside access “from dawn until dusk”. It will

also have the “Hawa Hawa”, an air-filled trampoline popularised in Japan.

Surrounded by almost 2.5 kilometres of beaches, the shopping, dining and entertainment areas at La

Mer will open to the public in two phases. The first comprises La Mer North and La Mer South, which has

over 130 hundred shops, cafés, restaurants, and beach activities.

Le Mer will be home to multiple F&B and niche retail operators

The second phase of La Mer, The Wharf, incorporates rusty steelworks and an industrial aesthetics, with

a watermark featuring a surf park. These are scheduled to open at the start of 2018. At a later stage,

there will also be a hotel and residential community located on two man-made peninsulas.

La Mer is the seventh destination delivered by Meraas in the past three years, following City Walk, The

Beach, Boxpark, Last Exit, The Outlet Village and Al Seef.

Source: Gulf News

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FINE & COUNTRY LINES UP SIENNA

VIEWS Wednesday, October 11, 2017

Fine & Country has secured the exclusive sales and marketing rights for the Sienna Views at Jumeirah

Golf Estates.

The new cluster has a limited collection of 34 villas with prices starting from Dh6.1 million. They are split

into four-, five- and six-bedroom units, with 70 per cent of the villas facing the Fire golf course. This

premium location is expected to prove popular due to increased demand for luxury golf living in Dubai,

Fine & Country said in a statement.

Despite growth in off-plan sales, Sienna Views caters to a “gap in the market for ready to move in

properties”.

The layout of each villa is unique and starts from a built-up area of 6,400 square feet. It tap into the

“need for large luxurious homes due to high numbers of millionaires in the city,” the statement added.

“This has been a key consideration for the developers, who have painstakingly ensured that the homes

will suit the lifestyle of a high net-worth individual.”

Jumeirah Golf Estates has already built up a profile as a residential destination. New homes are being

built, including those directly from the master-developer. Recently, it confirmed that further stretches of

land will be set aside for a new round of projects.

Jumeirah Golf Estates in total encompasses 1,119 hectares of land. It currently comprises 16

communities, which overlook the two golf courses, Earth and Fire.

Source: Gulf News

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DIFC SET TO UPGRADE INTO A TRUE

LIFESTYLE DESTINATION Wednesday, October 11, 2017

The Dubai International Financial Centre (DIFC) has firmly cemented itself as the leading financial hub

for the Middle East, Africa and South Asia, offering a world-class platform to enable cross-border capital

transfer, and a home for blue-chip organisations requiring a regional presence. The DIFC has committed

to tripling in size by 2024, with the Gate Avenue at DIFC connecting the whole master plan.

DIFC is considered one of the most prestigious addresses in the UAE and the wider region ... but why? It

offers occupants Grade A office accommodation, access to a community of over 21,000 professionals, a

world-class regulatory and legal framework, substantial tax benefits, prime residential space, luxury

hotels, world-class dining and some of the most exclusive art galleries.

This is compounded by its Common Law framework and free zone status, and made it the location of

choice, with current office occupancy at near 100 per cent in the core buildings.

The Gate Avenue at DIFC, due for completion in H1-18 will offer connectivity to every building within the

district. This improved accessibility will enable DIFC to operate more cohesively, connecting the

commercial and residential buildings and elevating DIFC’s position from a leading financial hub to a

world-class business and lifestyle destination. The retail, F&B and leisure facilities will enable the

business district to become a fully inclusive masterplanned community, further heightening demand

from commercial occupiers.

Not only will Gate Avenue at DIFC benefit commercial occupiers, but the many residential occupants who

choose to live in DIFC. It will benefit from an improved sense of community and connectivity, offering

retail and leisure opportunities that have been missing from the district. In addition the DIFC will look to

cement its place as a hub for art and culture, with a series of events being held along the parkways at

the podium level of Gate Avenue at DIFC.

However, the existing master plan will be positioned against the recent announcement of a new Dh5

billion venture by Dubai Holding for Emirates Tower Business Park, allowing the DIFC to continue with

their growth aspirations of tripling the size of the Centre by 2024.

DIFC will also look to strategically develop its properties, together with those owned and managed by

third-party developers, in due course, further expanding the delivery of prime commercial office and

residential space. Knight Frank expects greater absorption across all phases of the DIFC, as their clients

look to consolidate onshore and offshore activities under the new dual licensing rules.

This will provide certain existing DIFC registered entities the ability to benefit from greater efficiencies of

working under one roof and therefore minimising the need to double up on the back of house services

and administration.

The DIFC is however competing with existing free zones in Dubai and further afield and therefore needs

to position and develop itself to maintain growth. A trend of developing fully inclusive masterplanned

communities of Grade A Office space, leisure, retail and residential has matured in recent years.

Nearby developments such as One Central at Dubai World Trade Centre look to develop a direct, dual

licensed competitor to the lifestyle offering of the DIFC. Likewise, the future phases of Dubai Design

District (d3) will also include all facets of real estate, including amenities such as schools, community

centre, s etc. Further announcements also include Jumeirah Central, which looks to develop a compact

community master plan with a similar offering but with a blank canvas from which to construct world-

class infrastructure.



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The unique selling point and demand for the DIFC corporate occupier compared to its peers is the

combination of its legal system, with their own dedicated courts and Common Law framework. These

benefits should not be underestimated, as often it is a key feature that draws the big-name law firms,

banks and management consultants to the district.

Future developments — such as The Exchange, located in DIFC’s Gate Village, and ICD Brookfield Place

— are adjusting to meet occupier requirements, with LEED certification now a key trend in the delivery

of projects.

The continued success of the DIFC will be built upon the existing framework, in both the legal and built

environment. To maintain its position as a regional financial hub, it must continue to introduce new laws

and real estate offerings.

Attracting clients, both commercial and residential, will depend on a balanced lifestyle dynamic and

although other established free zones in Dubai are no competition, there is no room for complacency.

Source: Gulf News

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BUYING READY PROPERTY IN DUBAI Wednesday, October 11, 2017

Whether a modernised urban loft in Dubai’s upmarket business districts, or a sprawling villa in the

suburban golf greens around the city, owning a house comes with its merits, both economical and

emotional. We focus on ready-to-move in properties, and ask experts for the dos and don’ts of

purchasing one.

Ask the right questions

While buying a ready property is much faster, there are several factors one needs to consider. “Buyers’

due diligence and asking as many questions as possible is very important, whether to the seller, the

agent or even neighbours,” says Porush Jhunjhunwala, director at Banke International

Lewis Allsopp, managing director at Allsopp and Allsopp, says the right questions can sometimes reveal

more about the place than what’s on paper. He suggests starting with questions such as, “What do you

love about living here?” This can be particularly relevant in situations where you are looking to make the

property your next home. Allsopp says, “This is always a good question to get someone to open up and

you can take a lot from the answer.”

Property maintenance and upgrades

Whether investing or moving in, it is extremely important to know if the property has been regularly

maintained, from electrical to mechanical equipment and systems. It also pays to ask about any major

upgrades that have been made, for example, an additional room or bathroom, or a balcony converted

into a living space, as well as any issues that were fixed. “Ask about the maintenance — things like

whether the air conditioners and water tanks have been cleaned and any major problems that needed

fixing,” recommends Allsopp. “It is also good to be aware of any upgrades that have been made to the

property.”

If looking to purchase an existing property from a private seller, it is prudent to hire the services of a

registered, professional surveying company, advises Jhunjhunwala. “The upkeep of a property is the

responsibility of the owner; surveyors can assess the property in question by doing a thorough check of

the premises and can alert potential buyers to the risk of any future high-maintenance costs, particularly

for properties that may sometimes remain unoccupied for several months,” he adds.

Tenant

An existing tenant in a property you wish to buy for investment could feel like a boon, but can add to

the complication and time associated with buying a property. However, if the intention is to move in,

then it becomes all the more imperative to be in the know of the tenancy contract and the exact

vacating details. “If there is a tenant, then all details around tenancy should be clarified — when the

contract ends. If there is a vacating notice in place, then ask to see evidence of the same,” says Allsopp.

In either case, clear tenancy documentation and contracts help make the transfer process easy.

Mortgage

It is important to know the financial perspective of the buyer and seller, as it can be essential to

determining how the property transaction will take place. This includes things such as whether the buyer

is going to pay in cash or apply for a mortgage, or whether the seller has an existing mortgage on the

property. Allsopp says, “If the property is mortgaged the buyer needs to be in a position to discharge

the seller’s mortgage before collecting the title deed at the land department. The actual buying process

is straightforward enough.”

While an existing mortgage does not create a roadblock, it pays to know of it in advance and factor it

into your planning. “Ask if there is any finance outstanding. If there is, it is not an issue. It just helps

you prepare for the process and the timelines,” says Allsopp.



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Connectivity

Connectivity is a crucial factor for both investors and those choosing to live in the purchased property.

For example, it is a well-known fact that properties located close to the Dubai Metro attract higher

returns. Therefore, areas such as Dubai Marina or Jumeirah Lakes Towers, with their good transport

links, have higher rental potential among working professionals. When looking to move in, connectivity

to your place of work or schools can be important determinants. “Transport links to the places you need

to go to need to be on your list of questions,” says Allsopp.

Facilities

Grocery shops, restaurants and shopping malls, utility centres, schools and medical facilities are all

important considerations when looking to move into a place. While investing, additional factors like

proximity to the beach or parks can impact the saleability and price appreciation of a property. It is also

advisable to get a feel of community life in your choice of property if you want to make it your home.

Costs and service charge

Beyond the purchase price, experts say other areas where costs could be incurred during the buying

process include:

•Purchase price

•Transfer fee

•Transfer appointment fee

•Transfer appointment admin fee

•Agency professional fee

•Mortgage registration fee

•Mortgage registration admin fee (if purchasing with a mortgage)

•Conveyance fee

•Dewa

•Bank fees

•Deposits

A recurring cost like a service charge should be ascertained early on, as it can greatly impact the total

cost of ownership of a property.

Ready properties come with some inherent benefits. You pay for what you can see and feel. There is no

uncertainty or risk involved in terms of securing your investment as the property stands completed.

From an investment perspective, it allows you to choose high-yield areas based on surrounding

infrastructure and neighbourhoods. And if you are buying to live in your new home, it means an

immediate relief from rental costs and tenancy woes, or even travel time. But there are still some key

questions one needs to ask the owner before settling on a property. And this due diligence can go a long

way in securing your investment and your peace of mind.

Source: Gulf News

Back to Index



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WHEN I BUY PROPERTY Wednesday, October 11, 2017

Buying a property in Dubai can be an exciting but equally stressful experience. For many, purchasing a

home will be the biggest investment decision they will make in their lifetime. With so much at stake, it is

essential that buyers and investors are well informed and cognizant of the risks and rewards that the

local real estate market presents. This makes the whole buying process a far smoother one.

Location, location, location

A mantra repeated by real estate agents to prospective homebuyers is “location, location, location”. This

adage remains a key consideration when buying property. Why is location so important? Put simply, you

can change many things about your property — you can upgrade it, buy new furniture, you can even

make the property bigger, or smaller, but you cannot change the location. Where your home is located

determines the level of demand, the optimal rental strategy, and importantly it has a large bearing on

capital appreciation and hopefully profitability.

A good location is where there is potential for growth and development. Before purchasing a home,

buyers should research the future development plans for the area. Developments such as new industrial

sites, new roads or railways or even industrial activities can vastly alter the price profile of a community

or district. Infrastructure will also have an impact on the value of properties, as too will accessibility to

transport routes as well as proximity to amenities.

The price is right

Price is another key element to consider when buying property. For an investor, this is also closely

linked to return on investment (ROI). Short-term capital appreciation has often been the main

consideration for property investors in Dubai, but current market conditions mean capital gains are

harder to come by and yield is now paramount for buyers seeking ROI. When comparing Dubai’s real

estate market to other global hotspots, there is still value to be found: data from the Global Property

Guide shows a 120-sq-m apartment in a prime Dubai location is selling at an average of $5,918

(Dh21,736) per square metre. This compares to $7,250 in Sydney and $34,531 in London. Other price-

related factors to consider include service charges and mortgage rates as these can have a significant

impact on the net yield.

Rules and regulations

Ensuring familiarity with local rules and regulations governing Dubai’s real estate industry is also highly

recommended for would-be homebuyers. As Dubai’s property market continues to mature, so too has

the level of regulatory oversight with the emirate introducing several significant measures over the past

few years aimed at improving transparency and ensuring the rights of investors are protected. Of note,

Dubai is close to finalising a new rental law that will classify all properties and buildings in the older

parts of the city.

For landlords, this means future challenges in ensuring their rental premises meet minimum accepted

standards, while for tenants it will provide greater transparency in terms of what they are actually

paying for. Another important development has been the recent move to create a star rating system for

estate agents in the emirate. This allows potential investors to carry out proper due diligence on

property agents based on data from the Dubai Land Department (DLD).

Financial flexibility

Understanding your financial capabilities should always be a top priority when buying property. A lack of

clarity in terms of your financial goals may lead to disappointing results, including financial distress,

especially if the property is mortgaged. Besides a down payment, investors need to account for

transaction-related expenses like agency commissions, land department fees, bank processing fees,



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property evaluation fees, no-objection certificate charges, mortgage pre-approval costs, move-in costs

and renovation costs.

Regulations specified by the UAE Central Bank also dictate the amount of finance that can be obtained.

For non-UAE nationals buying their first home, 75 per cent of the property value can be mortgaged for

property valued at Dh5 million or less. If the value of the property is more than Dh5 million, non-UAE

nationals can borrow a maximum of 65 per cent. For a second property, the maximum loan is set at 60

per cent of the property value.

Central Bank rules governing the purchase of property before completion are also very clear. When

buying an off-plan property, the maximum loan amount is 50 per cent. Central bank regulations also

state that the maximum term of a mortgage shall be 25 years and the maximum age limit of a borrower

at the date of last repayment due on the loan is 65 years (or 70 years if self-employed).

A mortgage must be registered at the DLD and the law also outlines the enforcement mechanism in the

event a debtor fails to repay the mortgage value. It is important to note that the mortgage law only

allows banks and financial institutions licensed by the Central Bank to provide mortgage finance in

Dubai.

For would-be borrowers in the UAE, the outlook for mortgage interest rates is a relatively comfortable

one. According to BMI Research, the UAE isn’t expected to hike interest rates until 2018 with inflation in

the country remaining steady. With so many mortgage options available in a highly competitive market,

homebuyers can be selective in choosing the right financing that suits their individual needs.

Off-plan vs ready made

Choosing between an off-plan property, or a ready-made one, is a familiar conundrum for would-be real

estate investors in Dubai. While riskier than completed units due to the potential for delays,

cancellations, poor finishing and a change in overall market conditions, from a developer point of view

off-plan is the better option. The advantages of off-plan investment for buyers include payments that

can be spread over a longer period, lower upfront costs and a more competitive price, meaning the

potential for ROI is a higher.

Source: Gulf News

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DEYAAR’S HOSPITALITY EXCURSION Wednesday, October 11, 2017

While it has its hands full on its largest project, Midtown in Dubai Production City, Deyaar has also been

busy expanding its hospitality portfolio, striking a deal with Millennium & Copthorne for a total of 1,000

keys.

The partnership will cover three of Deyaar’s projects, The Atria in Business Bay, Mont Rose, which

comprises two residential towers and a hotel in Dubai Science Park, and a hotel and serviced apartment

property in Al Barsha.

Although its new projects are exclusively with Millennium & Copthorne, the company says it plans to

work with other operators in the future. “While we have nothing in the pipeline at present, we will keep

our options open,” says Nasser Amer, Deyaar’s vice-president of sales.

Looking forward to the World Expo 2020, the developer is also focusing on other niche segments. “We

aim to tap into the growing halal tourism market, which is expected to increase in volume by 50 per

cent in the next five years,” says Amer. “Our focus is also on developing economically priced

developments that address the needs of a wider range of market segments.”

At the recent Cityscape Global, hospitality was part of the main showcase of Deyaar. “Cityscape has

consistently been a solid platform for us to demonstrate our expertise and diversified portfolio, and has

always helped us introduce our value-added products and services,” says Amer.

The company has built a number of well-regarded properties across the real estate spectrum. It also has

an award-winning facilities and property management team along with an owners’ association

management division.

“We believe that a diversified portfolio is the key for sustainable growth and long-term value, both for

our investors and our stakeholders,” says Amer. “The diversification of our portfolio takes into account

what we consider to be our strengths, built on a foundation of more than 15 years of delivering quality

properties. “We have a deep understanding of customers’ needs and preferences and this has helped us

diversify our business, keeping our customers, investors and stakeholders at the core of our initiatives

and business plans.”

Summer offers

During the summer, the developer offered various “treats” to make purchasing property easier for

buyers. It offered guaranteed returns on The Atria to investors. It also waived the Dubai Land

Department registration fee and association fees and extended in-house payment plans for Midtown,

Montrose, Ruby and Mayfair.

“Our 2017 summer campaign was focused on our residential properties, opening up opportunities to

first-time buyers, as well as repeat investors. The Atria serviced apartments package remains

unchanged; return on investment is guaranteed,” says Amer. “Customers have provided us with

valuable responses with regards to our campaign, in which the offered flexible payment solutions in

particular were highly appreciated.”

Development activity

Meanwhile the developer is busy tackling its largest project, Midtown in Dubai Production City, a 1.2-

million-sq-ft master development containing six districts with 27 buildings combining for a total built-up

area of around 5 million sq ft. Some of Midtown’s offering will stay in Deyaar’s leasing portfolio, others it

will sell. Residential districts will offer studio to three-bedroom apartments, styled to attract young

families and there is one hospitality district. The first phase, comprising seven residential buildings with

659 apartments in the Afnan District, as well as the second phase, Dania District, are expected to be

completed in 2019.



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Dania comprises six residential buildings with 579 units, including a tower development created in

conjunction with Aşçıoğlu, to fall under its Selenium brand, according to the Turkish developer.

“We are working together with our Turkish partner on creating a co-branded development within our

Midtown project. The exclusive development will be located in the Dania District of Midtown,” says Amer.

Source: Gulf News

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HIGHER VACANCIES FORCE DUBAI

LANDLORDS TO NEGOTIATE ON RENTS Tuesday, October 10, 2017

Rents in some of Dubai’s busiest residential clusters are under intense pressure, with some landlords

willing to cut their asking rates by 5-7 per cent. For tenants, the best way to access lower rents is seek

out locations that have seen more new supply getting delivered or buildings with higher than average

vacancy levels.

“Anecdotal evidence suggests that numerous residential buildings — even within the prime areas such as

Downtown and Marina — are seeing increased vacancies, and as such, tenants have been able to

renegotiate their rents downwards,” states the latest Dubai real estate update from JLL.

The majority of completions during the third quarter of 2017 were apartments, with a further 3,300

units delivered. Villas and townhouses contributed 660 and 75 units respectively, the consultancy

reports.

The completions include the Duja Tower on Trade Centre First, which added 679 units, and The Polo

Residence in Meydan with 598 units. District 1 and Lila in Arabian Ranches 2 contributed 267 and 219

units, respectively.

Up to 80,000 units could be delivered before the end of 2019, going by all the timelines set by ongoing

projects and those launched recently.

“This renewed sentiment does, however, raise the prospect of a potential over supply on the back of

sales achieved through more attractive payment terms,” said Craig Plumb, head of Research for the

Mena region at JLL.

Thankfully for developers, sale prices for both villas and apartments remained “largely stable over the

quarter”.

The total value of transactions of existing residential properties (excluding land) is on the rise. This

includes Dh2.7 billion worth of sales of existing residential units recorded in August, with 20 per cent of

this occurring in Dubai Marina and a similar tally from the Business Bay/Burj Khalifa area.

A bit of the give-and-take approach is also visible in the retail space, with shopping centre owners “more

willing to negotiate” with existing tenants. “We have therefore seen a further decline in average rental

levels during the third quarter,” the report notes. “Super-regional and regional malls have recorded

declines of between 3-5 per cent in headline rents on a quarterly basis, which may understate the extent

of effective declines. Smaller neighbourhood and community malls have generally recorded greater

declines than in the larger centres.

“Vacancy levels have generally increased over the past year and this trend has continued during the

third quarter, placing further pressure on rentals. Rents are expected to remain under pressure over the

next 12 month given the large volume of potential new supply due to enter the market.”

Source: Gulf News

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AL GHURAIR PROPERTIES IN DH5B

BUILD-UP SPREE Tuesday, October 10, 2017

Al Ghurair Properties has confirmed a Dh5 billion spending spree on a range of realty assets, including

office buildings and hospitality.

This will take the form of 58 buildings that will include 8,000 residences and 350,000 square feet of

retail units.

The projects will be developed across Dubai, including Deira, Bur Dubai, Al Barsha, Al Qusais and Al

Warqa district.

“We started these projects with a focus on revitalising the housing segment in Dubai,” said Sultan Al

Ghurair, CEO of Al Ghurair Properties.

“We identified an upward trend in the present residential market and are currently aiming to optimise

the positive turn.”

The projects’ infrastructure works began earlier this year, with the first building due for completion by

the end of this year.

The remaining 57 are scheduled for completion by the fourth quarter of 2020. They will be built as per

the latest green building codes and come with energy-efficient fittings to conserve power.

“These projects reflect Al Ghurair Properties’ in-depth understanding of the market needs and our

commitment to providing the type of residential destinations that support the creation of a healthy real

estate market in the emirate,” Al Ghurair added.

Source: Gulf News

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EMIRATES HILLS VILLA TAKES CROWN

WITH DH95M DEAL Tuesday, October 10, 2017

Amidst all the offplan launch and sales spree, an existing villa in Emirates Hills was able to find a buyer

for Dh95 million, making it the costliest property purchase in Dubai during the third quarter of 2017. The

villa has a built-up area of 22,780 square feet, according to the consultancy Luxhabitat.

Emirates Hills also laid claim to the second biggest deal, with a 19,982 square feet property going for

Dh60 million. The buyers have not been identified.

The Palm took up the third and fourth spots, with Dh27.5 million and Dh22.5 million deals, respectively,

while the fifth costliest transaction was again for Emirates Hills to claim. (Emirates Hills also landed a

Dh101 million deal earlier this year, while a penthouse at Omniyat's One Palm was sold for Dh102

million.) Between July to end September. The Emirates Hills area alone transacted Dh107 million,

according to Luxhabitat. The overall villa market recorded transaction volumes of Dh688 million, with 71

per cent of these from the Emirates Living areas, which includes Emirates Hills, Springs, the Meadows

and The Lakes.

On the apartment side, the costliest deal was for Dh25 million, with which the buyer bagged a 12,469

square feet unit at Elite Residence/ In second place was a 5,016 square feet apartment at Palazzo

Versace, which commanded Dh15 million. The Palazzo Versace is located in Culture Village.

Another Culture Village landmark, the D1 Tower sold a unit for Dh7.45 million, and claiming the fifth

spot among the costliest apartment buys in Q3-17.

An Armani Residence unit went for Dh9.51 million and bagging the third spot, while another at Al Bateen

had the previous owner richer by Dh9 million.

Overall volumes in the premium apartment space came to around Dh1.2 billion, with 50 per cent pulled

in by the Dubai Marina area.

“It might be worth mentioning that two out of the three top apartment transactions were in “branded

developments” - Armani and Palazzo Versace - which continues a trend of increasing demand for

globally recognized luxury branded properties,” said Ryan Kasper, Director of Luxury Rentals. One of

Luxhabitat’s most notable transactions during the year included a Dh60 million Bvlgari penthouse.

But even in the luxury property space, demand is starting to gradually move into the offplan space.

“New locations such as CityWalk, Bluewaters Island, Bvlgari, Dubai Creek Harbour, and Dubai Hills

Estate make both investors and end-users very excited about new stock and the promise of new

communities,” said Alexander von-Sayn Wittgenstein, Luxury Sales Director at Luxhabitat.

“People are now expecting an upgrade in quality since a lot of the existing stock look a bit aged and the

price levels are more or less the same as a new stock when upgraded. End-users need to decide if they

need something immediate or not. “Eighty per cent of the offplan luxury market are going to investors

who are hoping for capital appreciation. Offplan properties also have the added advantage of flexible

payment plans.” As of Q2-17, the city-wide price per square foot for prime residences was Dh1, 441 a

square foot. The prices are at similar levels since Q2-16. The total transaction volumes in Q3-17 were

Dh1.9 billion, with Dubai Marina transacting around Dh363 million, followed by Palm Jumeirah (Dh218

million) and the Downtown (Dh160 million).

Source: Gulf News

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MORE VACANCIES FORCE DUBAI

LANDLORDS TO NEGOTIATE ON RENTS Tuesday, October 10, 2017

Rents in some of Dubai’s busiest residential clusters are under intense pressure, with some landlords

willing to cut their demand by 5-7 per cent. For tenants, the best way to access lower rents is seek out

locations that have seen more new supply getting delivered or buildings with higher than average

vacancy levels.

“Anecdotal evidence suggests that numerous residential buildings — even within the prime areas such as

Downtown and Marina — are seeing increased vacancies, and as such, tenants have been able to

renegotiate their rents downwards,” states the latest Dubai real estate update from JLL.

The majority of completions during Q3-17 were apartments, with a further 3,300 units delivered. Villas

and townhouses contributed 660 and 75 units respectively, the consultancy reports.

The completions include the Duja Tower on Trade Centre First, which added 679 units, and The Polo

Residence in Meydan with 598 units. District 1 and Lila in Arabian Ranches 2 contributed 267 and 219

units, respectively.

Up to 80,000 units could be delivered before the end of 2019, going by all the timelines set by ongoing

projects and those launched recently. “This renewed sentiment does however raise the prospect of a

potential over supply on the back of sales achieved through more attractive payment terms,” said Craig

Plumb, Head of Research - MENA at JLL.

Thankfully for developers, sale prices for both villas and apartments remained “largely stable over the

quarter”.

Total value of transactions of existing residential properties (excluding land) is on the rise. This includes

Dh2.7 billion worth of sales of existing residential units recorded in August, with 20 per cent of this

occurring in Dubai Marina and a similar tally from the Business Bay/Burj Khalifa area.

A bit of the give-and-take approach is also visible in the retail space, with shopping centre owners “more

willing to negotiate” with existing tenants. “We have therefore seen a further decline in average rental

levels during Q3,” the report notes. “Super-regional and regional malls have recorded declines of

between 3-5 per cent in headline rents on a quarterly basis, which may understate the extent of

effective declines.

“Smaller neighbourhood and community malls have generally recorded greater declines than in the

larger centres.

“Vacancy levels have generally increased over the past year and this trend has continued during Q3,

placing further pressure on rentals. Rents are expected to remain under pressure over the next 12

months given the large volume of potential new supply due to enter the market.”

Source: Gulf News

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DUBAI PROPERTY FOR UNDER DH1

MILLION Monday, October 09, 2017

With the affordability segment growing in the Dubai property market, homebuyers looking for property

worth up to Dh1 million now have a variety of options and areas to choose from. Property experts

highlight some of the key zones to consider.

Jumeirah Village Circle (JVC)

JVC is an emerging gated community offering mid-income housing options — apartments, town houses

and villas in a mix of established and off-plan projects. The place is easily accessible from two major

highway networks: Shaikh Mohammad Bin Zayed Road and Al Khail Road.

Ozan Demir, research and data manager of Reidin, says, “Over the last few years JVC has witnessed an

upsurge in popularity due to its attractive pricing and affordable housing projects. According to Reidin,

the current pricing for the community stands at Dh915 per square foot. When compared to kindred

areas, JVC’s sales price only lags behind International City, Discovery Garden and Dubai Silicon Oasis.

As the size of a specific unit increases the per-square-foot rate decreases. So with Dh1 million in hand, a

buyer can purchase a unit ranging from a 600-sq-ft studio to a 1,000-sq-ft two-bedroom unit.”

The community is still under development, with patches of land under construction all throughout JVC,

which is expected to mature by 2020, says Demir. “The units located towards the centre would have a

marginal price difference from units located close to the entry/exit points. As the area matures over the

next few years, prices will standardise. Currently, the entry and exit points at JVC are limited, but

Nakheel has recently been awarded a Dh18.5-million contract to construct the new JVC access points,

which will improve traffic flow and reduce journey times.”

Some key projects are The One by The First Group, Tower 108, formerly known as The Vantage, and

Viceroy Dubai (Suites in the Skai) by Five (formerly Skai) Holdings.

Arjan

Arjan is an emerging, mixed-use community in Dubailand, offering a mix of affordable residential,

hospitality and retail units. Spread across 10 zones with 157 plots, the place is accessible from Shaikh

Mohammad Bin Zayed Road and Al Khail Road through Umm Suqeim and Hessa Street.

Lynnette Abad, partner and head of Property Monitor, says, “The area is currently undergoing

construction for a number of developments and is expected to witness a significant number of projects

being handed over by 2019, including Vincitore Boulevard and Resortz by Danube, offering studios and

one-bedders for less than Dh1 million. Options for ready apartments for a budget of Dh1 million are on

projects like Lincoln Park and Vincitore Palacia [pictured], which is expected to be handed over in the

third quarter this year. Community prices are Dh794 per square foot for ready property.”

Dubai Sports City

Dubai Sports City is a developed community, offering numerous sports facilities and housing options,

both villas and apartments that provide good value for money.

Damien Hodgson, senior global property consultant at Gulf Sotheby’s International Realty, says, “The

area still requires some finishing to its infrastructure, but it provides all the necessary attributes for a

community to operate smoothly.”

“Buyers can get one-bedroom apartments for Dh750,000 in good-quality towers, studios in the better

towers for Dh650,000-Dh700,000, brand-new and off-plan units for Dh999,990 on a 30-70 payment



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plan and smaller two-bedroom apartments for Dh1 million,” says Hodgson. “The current rate is Dh750-

Dh900 per square foot. Buyers with a Dh1-million budget can get a studio of 450 sq ft to a one-bedder

of 1,000 sq ft or a small two-bedroom apartment of 1,100 sq ft. The Elite Residence offers good value

for money, The Matrix is the best building and the Canal Residence boasts of a good location.”

Dubailand

Dubailand consists of a mix of sporting, entertainment, retail and residential communities. The

residential options here include affordable and luxurious housing units — from apartments, town houses

to villas. The place is accessed through Shaikh Mohammad Bin Zayed Road, Al Khail Road and Emirates

Road.

Demir says, “Residential areas such as Arjan and Dubailand Residential Complex (DRC) are one of

Dubai’s emerging residential and commercial districts. Arjan has a sales price of Dh1,015 per square

foot. On the other hand, DRC currently has a selling price of Dh785 as per Reidin price trends. A buyer

can purchase anything from a 350-sq-ft studio to a 1,200-sq-ft two-bedroom unit in DRC and a 430-sq-

ft studio to a 1,050-sq-ft two-bedroom unit.”

“Some projects worth watching include Phoenix Tower by Phoenix Holdings, Platinum One by ACW

Holdings and Miraclz Tower by Danube Properties,” he adds.

Dubai South

Dubai South is set as clusters and includes residential, commercial, logistics, aviation, humanitarian and

even a golf district. Once completed, it will be one of Dubai’s prominent locations that houses the Al

Maktoum International Airport and the Expo 2020 Dubai site.

“Dubai South is a new and completely under-construction area, offering a large number of options for

off-plan investments,” says Abad. “The key projects in Emaar South are expected to be handed over

before 2020, including MAG 5 Boulevard in Q3 2018 [pictured], The Pulse in 2019, Golf Views in 2019

and Urbana in 2019, providing studios and one- and two-bedroom apartments within the Dh1-million

mark. The present pricing stands at Dh888 per square foot for studios starting at 390 sq ft to two-

bedroom apartments of 1,289 sq ft and town houses up to 1,832 sq ft.”

Dubai South is accessible via Shaikh Mohammad Bin Zayed Road and is served by public buses. Work is

under way to extend the Dubai Metro line to the area and for a tram network. It is also near key

employment and entertainment areas.

Source: Gulf News

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ENBD REIT ACQUIRES SIGNATURE

INTERNET CITY BUILDING Sunday, October 08, 2017

The ENBD Reit Ltd. has acquired The Edge office building in Dubai Internet City from the developer

Sweid & Sweid for Dh280 million. The 92,000-square-foot office building currently lists Oracle, Snapchat

and McGraw Hill as tenants.

The seven-storey development has 233 parking bays distributed over the ground floor and three levels

of basement parking.

The acquisition utilises ENBD Reit’s existing Islamic debt facility, which means that the property portfolio

is running at a loan-to-value ratio of 32 per cent. The entire asset will deliver a gross yield of 7.4 per

cent and a net yield of 6.6 per cent.

Source: Gulf News

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AIRBNB REVENUE SOARS 421% IN

DUBAI Wednesday, October 11, 2017

The company has assisted over 200 million guests in more than 65,000 cities and 191 countries.

Chestertons MENA, a leading international property agency, has released a special market report

outlining the growth of Airbnb in Dubai between August 2015 and August 2017. Revenues for properties

listed on the online marketplace and hospitality platform during that time increased by 421 per cent to

top $3.3million in August 2017, with listings nearly tripling to 3,249.

The relaxation of rules, effectively making it possible for home owners and tenants to cut out the

middleman and list their property directly on the site, has resulted in a marked increase in the number

of listed Airbnb units available, rising 161 per cent from 1,241 units in August 2015 to 3,249 units in

August 2017.

Chestertons research has revealed, rather than competing with Dubai's hospitality sector, the Airbnb

concept is complementing the hotel offering within the emirate by providing an alternative travel

experience, with average occupancy levels topping 57 per cent during Dubai's peak season. During the

low season months of June, July and August 2017, Airbnb occupancy levels averaged nearly 40 per cent

- on a par with performance in the hotel industry.

"In April 2016, a new Executive Resolution No. (1/2016) concerning the Second Edition of 'Dubai Holiday

Home Rental Regulations' was introduced, resulting in the relaxation of the rules surrounding holiday

home rentals. This has, in turn, increased the number of listings and created alternative accommodation

options to achieve the emirate's 2020 objectives," said Ivana Gazivoda Vucinic, Head of Advisory and

Research, Chestertons MENA.

The Dubai Department of Tourism and Commerce Marketing subsequently signed an agreement with

Airbnb in May 2016, to help further regulate the accommodation offering available and ensure only

whole or integral units are marketed, promoting responsible hosting and helping grow and diversify

tourism in the emirate in line with Dubai's strategy to attract 20 million visitors by 2020.

"Many real estate investors are diversifying into the holiday home rental market because of the ease in

regulations, combined with higher returns when compared to the traditional rental market. On average,

investors can expect an additional 5 per cent return when compared to long-term leasing rental yields,"

said Gazivoda Vucinic.

Average Daily Rates (ADR) for listings have retained consistent year-on-year levels with prices in August

2015 averaging $153; in August 2016 prices averaged $154; and in August 2017 the price was $154.

The first three months of 2017, denoting peak tourism season, witnessed ADR of $226, $201 and

US$204 respectively, further underscoring the popularity of the community-driven hospitality platform.

Since its inception in 2008, Airbnb has become a trusted community marketplace for people to list,

search and book unique accommodation around the world. To date, the company has assisted over 200

million guests in more than 65,000 cities and 191 countries.

"New regulations and an increase of Airbnb supply will help grow and diversify tourism, increase choice

and attract new guests to the emirate while also providing investors with an alternative income stream,"

added Gazivoda Vucinic.


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DEVELOPER AWARDS DH400 MILLION

CONTRACT Tuesday, October 10, 2017

Jumeirah Golf Estates (JGE) has awarded Al Qabdah Building Contracting a contract worth Dh400 million

for its mid-market residential community, Alandalus.

Al Qabdah has been appointed to construct six apartment buildings, while construction of two other

buildings is ongoing. The entire development, including 715 apartments, 95 townhouses as well as the

retail centre, is on track to be completed prior to Expo 2020.

The awarding of this contract sees JGE on track to commence phased handovers from Q3 2019,

beginning with Tower C. Meanwhile, towers A and B are on track to be handed over in Q2 2018.

Yousuf Kazim, CEO of Jumeirah Golf Estates, said: "We have sold out both the launched apartment

towers."


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DUBAI TENANTS WELCOME HOME

HANDOVERS AS RENTS DIP Tuesday, October 10, 2017

Rents in Dubai continued to witness single-digit declines in the third quarter of 2017, according to real

estate consultancy JLL. This was on the back of more supply - approximately 3,300 homes were

delivered in Q3 - which resulted in more vacancies as tenants scouted for better deals.

"Numerous residential buildings, even within prime areas such as Downtown and Duba Marina, are

seeing increased vacancies, and as such, tenants have been able to renegotiate their rents downwards

by an average of five to seven per cent," said Craig Plumb, head of research - Mena at JLL.

The majority of completions during Q3 were apartments. Villas and townhouses contributed 660 and 75

units respectively. The largest completions were Duja Tower in Trade Centre First, adding 679 units and

The Polo Residence in Meydan with 598 units. District 1 and Lila in Arabian Ranches 2 contributed 267

and 219 units respectively.

Sale prices for both villas and apartments remained largely stable over Q3, according to JLL. The total

value of transactions of existing residential properties (excluding land) has gone up, with sales in the

year to August exceeding Dh13.7 billion, up by 28 per cent from the Dh10.7 billion recorded in the

corresponding period in 2016.

August alone recorded residential unit sales worth Dh2.7 billion, with Marina and Downtown contributing

the biggest chunk of value.

Forecasting 80,000 homes to be handed over by the end of 2019, JLL warns that this could result in a

potential over-supply situation. However, actual deliveries are likely to be below this level. "While more

of these projects are being marketed as 'middle-income', the majority remain above the price range that

JLL deems affordable [below Dh800,000 for a 2-bedroom unit]," added Plumb.


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GOT DH500,000 TO SPARE? OWN A

HOME WITH A GOLF COURSE VIEW Monday, October 09, 2017

Damac Properties has announced the launch of apartments in a residential tower in Damac Hills

overlooking the Trump International Golf Club Dubai.

Called Skyview Levels at Golf Vita, the apartments are available in one- and two-bedroom configurations

and situated at levels 17 to 26 within the tower.

Skyview Levels at Golf Vita will go on sale on October 11 from 5pm till 11pm at the Trump International

Golf Club Dubai. Prices start at Dh576,000 with a payment plan of only one per cent per month after the

initial deposit. Investors can pay an initial deposit of 20 per cent plus DLD registration fees and Dh5,760

per month for 30 months, with the remainder due upon completion.

"Skyview Levels at Golf Vita provides investors an opportunity to own a luxury apartment on a golf

course," said Niall McLoughlin, senior vice-president, Damac Properties. "Investors and end-users will

enjoy a desirable location that was not attainable before at such a price."

According to a study conducted by KPMG in 2015, golf courses increase the valuation of adjacent real

estate by up to 20 per cent when compared to similar real estate in a neighbourhood without the golf

course component.


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DEMAND INCREASES FOR DAMAC

UNITS NEAR EXPO SITE Sunday, October 08, 2017

Damac Properties has announced that its hotel apartment projects in New Dubai and Dubai South are

more than 80 per cent sold out. Demand continues to rise for its hotel apartment projects as Expo 2020

nears and investors look to secure units ahead of the surge in visitors. A small number of units remain

across its four projects which include ready-to-move-in and off-plan units.

"As construction ramps up in preparation for Expo 2020, it is no surprise that investors are looking for

real estate in this district to reap the highest rental yields early before demand drives prices up," said

Niall McLoughlin, senior vice-president at Damac. "Investors and end-users are attracted to new,

affordable communities that offer the same amenities available in busy metropolitan areas."

Situated in proximity to the site of Expo 2020, Damac Maison de Ville Tenora is the developer's first

project to be completed in Dubai South. Also at Dubai South, Damac Maison de Ville Celestia is an off-

plan hotel apartment development with expected delivery in 2018. Damac also has two hotel apartment

towers in Jumeirah Village Circle, Tower 108 and Ghalia, which are also due for completion in 2018.

Construction on the multi-tower complex, Damac Maison de Ville Celestia is at an advanced stage of

completion with building works at nearly 90 per cent complete. Similarly, Ghalia and Tower 108 are

progressing with block, plastering and internal works at varying stages of completion along with

mechanical, electrical and plumbing works.

"As we near Expo 2020, sales and rental prices of units in Dubai South and the surrounding areas are

likely to increase due to the rising demand by tourists and business visitors. It is expected that Dubai

South will house one million residents and employ more than 500,000. When coupled with the

anticipated 20 million visitors likely to come through Dubai in 2020, residential and hospitality units in

this area will continue to be in demand," continued McLoughlin.


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PALM JUMEIRAH VILLA TENANT IS

REFUSING TO MOVE OUT OVER

DEPOSIT ROW Wednesday, October 11, 2017

I have an issue with a long-term tenant who lives in my villa on Palm Jumeirah. The tenant has given

me 90 days notice to vacate the property and the tenancy is coming to an end. Although the tenant has

followed the correct protocol regarding the notice period, he is disputing the return of his deposit. He

made a cosmetic change to the exterior of the property without my consent and is now unwilling to

change it back as he thinks it has "enhanced" the property.

Furthermore, a clause on the tenancy contract states that if the tenant were to stay more than two

years then the property would not need to be given back freshly painted. However, I stated that if there

was a lot of damage to the walls that could not be repaired by painting then this would be exempt from

the clause.

I have stayed extremely calm with the tenant and tried to reason by email. However, the tenant now

says that unless he gets his deposit back he will not leave the property and exercise rights under a

dispute situation and raise a formal compliant with the Real Estate Regulatory Agency (Rera). What

rights do I have in this situation? KK, UK

The deposit is held by the landlord on the understanding that it can be used to repair or replace any

items or fabric of the property that is damaged or broken during the period of the tenancy. It is also

often used to return the property to the same condition it was at the start of the agreement. I note that

in your case, the tenant has no need to repaint the property at the end of the contract due to the fact

he/she has been residing for longer than two years, which I presume is the case.

Of course re-painting is one thing but if, as you say, there is damage to the walls then this would fall

under a repair, to which it would then be perfectly acceptable for you to use the deposit or part thereof.

Each stakeholder has rights to complain but in this case it would not be to Rera, it would be to the

Rental Dispute Settlement Committee (RDSC).

Obviously the tenant cannot stay in the property rent free, so his demand of "pay me my deposit or I

will not vacate" does not hold water even if he is quoting a dispute situation. No judge will allow free

accommodation while a dispute is ongoing, eventually he will have to pay some sort of rent.

My advice would be to initially try and resolve this amicably. If this breaks down you can always file a

case at the RDSC later. You will have to weigh up the cost of opening a case against the cost of any

repair to the property.

The RDSC was established by a decree in 2013 in an effort to streamline a more efficient process to

resolve complaints from tenants and landlords in Dubai.

Be aware that you will need to prepare various documents that are required for any dispute case to be

filed with the centre. For overseas landlord these would include:

• Ejari certificate

• Original tenancy contract

• Passport copy



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• DEWA bills

• Title deed

• Copies of cheques

• Any other relevant documents

It’s also recommended that your documents are translated into Arabic.

There is a RDSC form that also needs to be filled out at a typing centre (in Arabic and English). Once

this is done, you can file the case. The centre has the jurisdiction to hear cases and it comprises four

departments that handle different stages in the legal process. The Arbitration Department is the first

point of contact, which aims to settle disputes amicably within 15 days.

If a settlement is not reached, then a lawsuit would need to be filed with the department of First

Instance, which will rule on the matter within 30 days. Decisions taken at this stage will remain final,

unless an appeal is made at the Department of Appeal. In order for this to be done, the annual rent

value on the tenancy contract must be worth more than Dh100,000.

After a ruling is made at the appeals stage, it cannot be reversed. The Execution Department is then

tasked with enforcing the decisions and judgements taken by the centre.

As stated, think about the cost and whether it is worth pursuing this in terms of time and money

involved. With your application you will pay a fee of 3.5 per cent of the annual rent of the property. The

fee amount must at least be Dh500 and cannot exceed Dh20,000.

You will get a date and a time to go and present your case. There is a queue and everyone comes in at

the same time, so you may have to wait before being seen. Once you are called in, you will be asked to

present your case and the other party will too. If the case is not straightforward and requires more

documents or investigation, you will be given another time and date - usually a few weeks later.

Depending on the complexity of the case, it can take a few months to get resolved, so be prepared.

Once the paperwork is processed, a hearing will be scheduled and both the tenant and the landlord will

need to appear.

Source: The National

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ALDAR TO DELIVER HOMES TO

CUSTOMERS THIS DECEMBER Tuesday, October 10, 2017

Aldar Properties on Tuesday said it is preparing to hand over the Andalusian-style apartment

development Ansam to customers during December. External work is complete with landscaping due to

commence this month while internal final fit outs are nearing completion.

Also nearing completion is Al Hadeel, located on Al Raha Beach and featuring apartments, town houses

and duplexes, which will also commence hand overs to customers in December.

Façade work is now complete and final fit out and landscaping are entering final stages of completion,

Aldar said in a statement.

Source: Gulf News

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ABU DHABI GDP WILL HIT DH850

BILLION IN 2017: S&P Wednesday, October 11, 2017

Standard & Poor's has forecast that Abu Dhabi's gross domestic product (GDP) will rise to Dh850 billion

and Dh890 billion at current prices in 2017 and 2018 respectively, attributing the growth to the

momentum witnessed by the oil and non-oil sectors since the beginning of this year.

The credit ratings agency expected the emirate's per capita GDP to amount to Dh277,000 during 2017

at current prices, which is the highest across the GCC states. Inflation is anticipated to stand at 2.5 per

cent during 2017 and projected to reduce to two per cent in 2018.

The forecasts are aligned with the Statistics Centre - Abu Dhabi (SCAD), which expected the emirate's

economy to grow by 17.7 per cent during Q1 2017 against the corresponding period last year.

Economic analysts surveyed by Wam attributed the emirate's positive economic performance to growth

in non-oil activities which now account for more than two-thirds of the emirate's GDP, in addition to the

improvement in global oil prices.

The oil and gas sector's contribution to the emirate's GDP declined to 27.5 per cent in 2016 while the

non-oil sector contributed a 50-year high of 72.5 per cent.

According to SCAD figures, the information and telecommunication sectors contributed 6.9 per cent to

the emirate's GDP, followed by the transportation and storage sectors with 5.8 per cent and the process

industries with 3.6 per cent.


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SECOND ROUND OF SALES TO OPEN AT

SHARJAH’S BIGGEST PROJECT Thursday, October 12, 2017

The second round of sales for homes at Sharjah’s Aljada master-development kicks off on October 14.

The “Anber Community” features villas and town houses located near the heart of the 2.2 square

kilometre development. In total, 84 homes are being released for sale, and will be backed up by

exclusive payment plans and incentives. The event takes place at the Radisson Blu Resort in Sharjah.

Since the project’s unveiling on September 6, more than 500 units in Aljada’s Phase 1 have been sold to

date.

In a statement, Shaikh Sultan Bin Ahmad Al Qasimi, Chairman of the developer Arada, said: “In just a

few short weeks, Aljada has seen exceptional sales, thanks in no small part to the support that the

project has received from the highest levels of the Government of Sharjah.”

With a gross real estate value of Dh24 billion, Aljada is situated on the “last major plot of undeveloped

land in the heart of Sharjah”.

To be delivered in phases starting in 2019, construction on Aljada will begin in the first quarter of 2018

and the entire project is expected to be completed by 2025.

Source: Gulf News

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HERE'S YOUR CHANCE TO LIVE IN

SHARJAH'S MEGA PROJECT Saturday, October 11, 2017

Sharjah's largest mixed-use mega project, Aljada, will be launching Anber Community today, a collection

of villas and townhouses, at a special launch event featuring exclusive payment plans and incentives for

attendees.

A total of 84 homes are being released for sale.

Sheikh Sultan bin Ahmed Al Qasimi, Chairman of Arada, the developer of Aljada, said: "In just a few

short weeks, Aljada has seen exceptional sales, thanks in no small part to the support that the project

has received from the highest levels of the Government of Sharjah. We are delighted at the reception

Aljada has witnessed from the local community, and look forward to delivering on our promise to create

Sharjah's newest and most exciting destination."

With a gross real estate value of Dh24 billion, Aljada is ideally situated on the last major plot of

undeveloped land in the heart of Sharjah, with exceptional connectivity to surrounding areas, and is an

all-encompassing district that comprises considerable retail, leisure and entertainment options, in

addition to a wide range of residential and commercial offerings. Delivered in phases starting in 2019,

construction on Aljada will begin in the first quarter of 2018 and the entire project is expected to be

completed by 2025.

Aljada, a master-planned destination covering over 2.2 square kilometres that is set to transform the

future of Sharjah, was unveiled by His Highness Dr Sheikh Sultan bin Mohammed Al Qasimi, Member of

the Supreme Council and Ruler of Sharjah on September 6.

The development includes an extensive residential mix including standalone villas, semi-detached villas,

townhouses and apartments.


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RAK AND LUXEMBOURG DISCUSS CO-

OPERATION AND INVESTMENT

OPPORTUNITIES Saturday, October 14, 2017

The Ras Al-Khaimah Chamber of Commerce and Industry and a high-level delegation from the Duchy of

Luxembourg met to discuss joint economic activities and investment opportunities.

The delegation from Luxembourg was headed by Prince Guillaume, Heir Apparent of Luxembourg.

The talks included economic issues of mutual interest in addition to bringing together local companies

and representatives of companies accompanying the Luxembourg delegation to discuss investment

opportunities.

Prince Guillaume emphasised the importance of expanding areas of co-operation between Ras al-

Khaimah and Luxembourg in several sectors. He said it is important to utilise the resources and facilities

that both sides offer for the benefit of both economies.

Prince Guillaume praised the development and progress that Ras al-Khaimah has witnessed in recent

years and pointed to the increasing interest of companies in Luxembourg in investing in the emirate

because of its economic vitality and diversity.

He added that both the UAE and Luxembourg have had a lot of success in developing and growing vital

economic sectors, reflecting their ability to continue on the path of sustainable economic development.

He said that the diversity of the Luxembourg economy helped it attract investment from many global

companies and made it a base for their European operations.

He further said that Luxembourg lies in the middle of Europe, rendering it a gateway to European

markets and their 500 million consumers.

Mohamed Al Nuaimi, Chairman of the Board of the Ras al-Khaimah Chamber, stressed the importance of

developing economic relations between the emirate and the Duchy of Luxembourg to benefit from the

strong economic fundamentals of both parties.

Al Nuaimi expressed the commitment of the Chamber to opening new horizons of co-operation between

organisations in the emirate and Luxembourg, particularly in the sectors of interest to Ras al-Khaimah

such as manufacturing, education, healthcare, tourism, transport, and infrastructure.

This meeting, he said, is an opportunity to explore areas of co-operation and new investment

opportunities between Ras al-Khaimah and Luxembourg. He said that there are many economic

similarities between the two sides that facilitate mutual co-operation.

He added that business meetings like this are key to opening channels of communications between the

business communities of the UAE and other countries, and for introducing them to the investment

climate in the country. The UAE, thanks to its vital strategic location and favourable investment

environment, is a crucial gateway to the markets of the entire region. As such, it is an ideal base for

companies from Luxembourg looking to penetrate the markets of the Middle East, South East Asia, and

Africa.

Source: Sharjah 24

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TO STAND THE TEST OF TIME Wednesday, October 11, 2017

In 2017 London has seen the completion of about 46,500 new build residential units across the city. This

is still short of overall real housing demand (over 64,000 homes required), but while some

developments sell out in a matter of weeks, others tend to linger on the market, leading us to pose the

question, why? The common thread linking successful schemes is a superior quality of design. Design,

quality and true value for money is increasingly becoming more important than location. Buyers are

willing to look further out if they get the right quality of product. To achieve this, developers and

designers use dedicated craftsmen to design globally leading interiors. Rory Cramer, Head of

Consultancy at Marsh & Parsons New Homes division feels strongly that developers can no longer create

“cookie cutter” schemes aimed at the many rather than the few. He says, “Buyers of new build

properties in London are more discerning than ever, they want the highest quality coupled with exquisite

craftsmanship. We always advise using best in trade craftsmen to ensure show-stopping design that will

stand the test of time and that owners will be proud to show off.”

Quality craftsmanship

Ian Bayliss co-founder of interior designer Bowler James Brindley, behind many leading residential and

hotel schemes including the newly refurbished W-Hotel in Barcelona and One Crown Place in London

says, “Quality craftsmanship can really bring a development to life. Every designed apartment or

commercial space should tell a story and take the viewer on a journey. We use world-class artisans who

are the best in their trade to conjure bespoke pieces of furniture. Our aim is to compliment the

overriding theme of each development, emphasise the originality and give it a specific edge.” One such

craftsman who has been making waves across London is South African born Justin Van Breda. Bowler

James Brindley invited him to create bespoke furniture at one of the penthouses at Nova, a development

in Victoria. Stepping out of his usual comfort zone of more traditional pieces Justin collaborated with

Bowler James Brindley and made a 1970’s inspired bar which was wrapped in leather, featured elements

of brass and was set off by the large perforations in the bar front. Stephen Crawley co-founder of

interior designer Bowler James Brindley says, “The whole building is quite out there in that, in our

opinion, it’s a reinterpretation of 1960s and 1970s architecture, there are lots European Modernist

influences and what Justin achieved with the bar is straight out of a Scott Fitzgerald novel. The overall

objective was to bring about a rich feeling of rock and roll and to evoke the characters changing the

paradigms in London in the late 1960s and early 1970s. ”

Local sourcing

Bowler James Brindley also places an emphasis on “local sourcing”. Bayliss explains: “What we might

use in one development could be totally different from the next as the audiences who buy in different

locations can vary and different things resonate with them. For example at One Crown Place it is our

intention to use local silk manufacturers and we have used London based furniture makers at the Nova

Penthouse.” Traditional craftsmanship can span all of the elements of new build construction and design.

Mount Anvil is one such developer who places huge emphasis on skill and quality. Their new

development in Vauxhall, Keybridge is one such example. Rory Cramer of Marsh & Parsons continues;

“Mount Anvil used a material (brick) that we are familiar with and is typical to London architecture and

design but in a contemporary way. The brick buildings designed by Allies and Morrison create a sense of

familiarity and warmth that glass and steel struggle to provide. But they have taken this material to a

new level and built the tallest brick building in Europe at 37 stories high.” Lucy Southall co-founder of

Bowler James Brindley concludes; “Authentic craftsmanship at new residential developments is only

going to become more important. Interior designers should work closely with developers to suggest the

best in field from the exciting global pool of highly skilled talent.”

Source: Gulf News

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EMAAR LINES UP NEW PROJECTS IN

GURUGRAM, EXPECTS MARKET

REVIVAL SOON Tuesday, October 10, 2017

Signalling a likely turnaround in India’s real estate market, Emaar India, the Indian arm of Dubai’s

Emaar Properties, on Monday said it is working on a slew of new projects in the National Capital Region

(NCR) as it expects to complete all its ongoing projects by the end of 2019.

“We have expedited all our projects to be able to deliver close to 11,000 units by the end of 2019. This

would complete all our existing projects,” Emaar India chief executive officer (CEO) Sanjay Malhotra said

at the company’s Sales Centre launch in Sector 61 here.

Emaar India raised Rs25 billion (Dh1.4 billion) to expedite the execution and completion of its ongoing

projects.

Malhotra said there are greenshoots in the market as the queries of buyers gaining momentum

gradually.

“We have already surpassed our annual target for this year. Enquiries in the secondary markets [are]

also going up,” he said, adding that the company was working towards announcing new projects with a

total inventory of 1,600 units.

“This would be a mix of new projects and expansion of existing projects and would be announced very

soon,” he said, adding that the new projects may not be in the premium category.

According to a report by Cushman and Wakefield, the affordable housing segment has demonstrated the

strongest growth trend, recording a 27 per cent increase in the new units launched in these cities.

More than 26,000 new units have been launched in 2017 so far. Of the total new launches in affordable

units, 40 per cent were in Mumbai (10,500 units) followed by Kolkata and Pune.

All other categories have seen a decline with the high-end (minus 66 per cent) and luxury (minus 84 per

cent) segments witnessing a significant drop in new launches.

The affordable housing segment is expected to continue its momentum with the Government of India’s

focus on ‘Housing for All’, the report says.

The segment caters to the unmet demand of a large section of the Indian population looking for

affordable housing options.

Malhotra said the positive traction in the market has been seen after the recent policy interventions such

as the Real Estate Regulatory Authority and demonetisation by the government.

Recently, Shapoorji Pallonji Group’s real estate arm, Shapoorji Pallonji Real Estate, announced a 2

million sq ft affordable housing project on 20 acres of land it bought near the Dwarka Expressway.

Source: Gulf News

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ACCORHOTELS CLINCHES $1B DEAL TO

BUY MANTRA Thursday, October 12, 2017

France’s AccorHotels said Thursday it has reached a deal to buy Australian hotel operator Mantra for

€900 million (Dh3.9 billion, $1 billion), in a move that will strengthen its “long-term grown in the Asia

Pacific region”. The agreement, yet to be approved by Mantra shareholders, will see the Australian

operator’s shares sold at A$3.96 (€2.7, $3.1) each, AccorHotels said in a statement. “AccorHotels will

pay A$1.3 billion, equivalent to €0.9 billion”, the French hotel giant said. Mantra put the figure at slightly

lower — A$1.25 billion, including debt. The buyout is expected to be completed by the end of the first

quarter of 2018, should Mantra’s shareholders agree to it, AccorHotels said.

Mantra Hotels owns 127 resorts, hotels and apartments in Australia, New Zealand, Indonesia and

Hawaii, operating more than 20,000 rooms.

The company, which employs 5,500 people, also owns the BreakFree Holidays and Peppers holiday

services.

In August Mantra posted half-year profits of A$45.6 million, a 22.7 per cent jump.

Leading European multinational AccorHotels owns Sofitel, Pullman, Novotel, Mercure and Ibis. It

operates 4,200 hotels with over 600,000 rooms.

Source: Gulf News

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MALABAR LAUNCHES RS30B

RESIDENTIAL PROJECT IN KERALA Friday, October 13, 2017

Montana Estates to be an eco-friendly residential cum official complex spread across in 150 acres of

land.

Malabar Developers, the real estate division of jewellery retailer Malabar Group, has unveiled a luxury

residential project designed primarily for NRIs in a scenic suburb of Kozhikode in Kerala.

Montana Estates, an eco-friendly residential cum official complex spread across in 150 acres of land, is

located on a hillside in Kuttikkattoor. The complex is being developed at a cost of Rs30 billion.

M.P. Ahammed, chairman of Malabar Group, said the project comprises custom-designed signature

bungalows, luxurious villaments and apartments.

Conceptualised as an exclusive residential community, Montana Estates features facilities like a spa,

resort, organic farming, fitness centre, club house, as well as all other modern facilities. "When this

project gets completed, it will become one of the first nature friendly township in South India,"

Ahammed said at a Press conference.

Also present was Shamlal Ahmad M.P., managing director of international operations at Malabar Gold

and Diamonds in Dubai; Abdul Salam K.P., group executive director of Malabar Group; Asher O.,

managing director of India operations at Malabar Gold and Diamonds; Mayankutty C., group executive

director at Malabar Group; and Tony Joseph, principal architect at Stapati.

Cloudberry, the villament project envisaged at the heart of Montana Estates, offers a combination of a

villa-plus-apartment living. Facilities range from schools, malls, farming, helipad, swimming pools, open

playground for kids and adults, gym and jogging and cycling track to banking services, a food court and

solar streetlights and water purification plants.

"We are planting 100,000 saplings to maintain this natural beauty and the greenery by the design of this

project. Through this we are trying to create an example of safeguarding nature," Ahammed added.

Malabar Developers is working on multiple projects in Kerala and other neighbouring states. Calicut,

Trivandrum, Kochi, Perinthalmanna, Thrissur, Kannur, Kottayam are the districts where various projects

of Malabar Developers are underway.

The group will be opening the Mall of Travancore in Trivandrum within the next couple of months. The

Marina Convention Centre in Farook, Kozhikode near the Chaliyar river will be a major destination with

an amusement centre.

It will also be a leading wedding destination in northern Kerala where around 2,000 people can be

accommodated at a time in an air-conditioned hall.

The IT Township in Thrissur has IT park, Business Park, multiplex as well as all modern facilities. In

Bangalore as well as other towns in Karnataka, Tamil Nadu, Telengana, Andhra Pradesh, and

Maharasthra similar townships are being planned, Ahammed said.


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POUND'S FALL FAILS TO FUEL LONDON

LUXURY HOME SALES Wednesday, October 11, 2017

Property experts who thought that London’s luxury-home market would be kick started by the pound’s

fall after the Brexit referendum are being left disappointed.

Sales of houses and apartments in the UK capital’s best districts rose less than 0.5 per cent in the three

months through September from a year earlier, according to data compiled by researcher Lonres. That’s

based on transactions for existing homes and new properties being sold on by speculators.

Just like it did after the financial crisis, the pound’s decline and falling values have created fat discounts

for Asian investors interested in buying London’s best homes. The difference now is that many upper-

middle-class residents of Hong Kong and Singapore who wanted a property in the UK capital already

have one.

They’ve “been tapped out,” says Paul Donovan, global chief economist at UBS Wealth Management.

Values have fallen 15 per cent since their peak in September 2014, according to broker Savills, but the

pound’s decline means buyers from Hong Kong can acquire a mansion in London’s best districts for 30

per cent below the record, according to Bloomberg calculations. For a purchaser in mainland China, it’s

about 26 per cent cheaper.

Rising taxes for landlords and second-home owners, as well as declining rents, have damped demand for

prime central London properties. The luxury-home market is suffering from oversupply and the wider

city is at risk of becoming a bubble, UBS Group said in a report in September. Savills forecast last month

that residential values in the best districts won’t match their previous peak until 2022.

Buyers living overseas piled into the London market after the financial crisis, seeking a haven from

Europe’s debt crisis and turmoil in the Middle East. Almost half of the purchasers of new-build homes in

central London’s best districts in the two years through June 2013 were living abroad, broker Knight

Frank said at the time. Overseas buyers comprised 65 per cent of the market for homes costing £5

million (US$6.6 million) or more in the nine months through September 2011, Savills said then.

This time around there are “fewer buyers, despite the pound falling, as Chinese capital restrictions slow

inflows from there, extra stamp duty and buy-to-let taxes reduce rental yields, and political uncertainty

deters others,” according to Bloomberg Intelligence analyst Sue Munden. On the other hand, sellers

aren’t under pressure to do deals because the market isn’t distressed, causing them to pull properties

for sale rather than accept lower prices, she says.

Some homeowners are opting to rent out their homes instead. An increase in properties being offered

for lease contributed to a 3 per cent fall in rents in September compared with a year earlier, Knight

Frank said on Monday. Fewer new homes are being sold to landlords after a 3 percentage point increase

in stamp duty for landlords and changes to the tax relief for mortgages.

Developers are delaying new luxury-home projects in London after the sales tax increases made building

less profitable, consulting firm Arcadis NV said in June. On analyst calls in September, executives at

Redrow said the firm has “no real intention” of stepping back into the market and their counterparts at

Barratt Developments said sales rates are down because of a more challenging environment.

Some buyers in Asia are also getting nervous about values in districts like Nine Elms, says Huw van

Steenis, global head of strategy at Schroders. The developer of Battersea Power Station, a residential

and office project in the Nine Elms district, is on course to achieve less than half of its original return

target as costs rise and wider economic uncertainty damps demand.



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While overall purchases of London homes under construction in the second quarter climbed 30 per cent

from a year earlier to about 5,800 units, the stock of unsold homes being built reached almost 26,600

units, the highest since Molior London began collecting the data in 2009.

Price growth will be moderate going forward regardless of how Brexit unfolds because of higher

purchase costs, greater exposure to capital gains tax and inheritance tax for overseas owners, according

to Yolande Barnes, head of world research at Savills.

UBS says there’s still reason for concern about Brexit. “We continue to advise caution given high market

valuations and enormous political uncertainty,” according to the September report.


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IS NOW THE TIME FOR GULF

INVESTORS TO BUY LONDON

PROPERTY? Wednesday, October 11, 2017

In 1986, investment guru Warren Buffet shared the secret of his success in his annual letter to

shareholders of Berkshire Hathaway, his sprawling investment conglomerate. “We simply attempt to be

fearful when others are greedy and to be greedy only when others are fearful,” he wrote.

Recently, the more sophisticated global investors in London’s property market seem to be heeding his

advice. Even as in-fighting threatens to topple the current Conservative government and economists

warn of a dire impact from the UK’s vote to leave the European Union last June, London’s commercial

property market is on a tear.

Investment sales in the city’s central business district are up nearly a fifth in the first half of the year,

compared with the same period last year, to more than US$11 billion, according to Cushman &

Wakefield. The shift stands in stark contrast to waning appetite in New York, where the total value of all

commercial property sales for 2017 are forecast to match 2008, the year that Lehman Brothers went

bust and the entire US financial system teetered on the edge of collapse.

Bullish sophisticated investors may not be the only ones betting on gains in central London property.

Central London home sales were up more than a fifth in June and July compared with the same period

last year, according to Knight Frank. New buyer registrations at the agency are climbing, too – up 8 per

cent between January and August compared to a year before.

A decent number of those new registrations are from the Middle East. London has long been a favoured

property investment location for investors from the Gulf. A 2016 report by YouGov found that only Dubai

was a more popular location for the region’s wealthy.

In addition, Asian investors are flocking to London in increasing numbers. High-end developers report

increased interest in London’s very priciest properties in flagship spots like Mayfair and Knightsbridge.

Juwai.com, the Chinese international property portal, reported a growth in enquiries for UK property of

60 per cent in the year to April 2017.

In both cases, investors will have noticed the benefits that Brexit has handed foreign buyers. The pound

has lost more than 10 per cent of its value against dollar (to which the UAE Dirham is pegged) since the

eve of last June’s referendum.

Across prime central London, meanwhile, agents report the vote has been a wake-up call for owners of

prime properties. Few of these sellers typically have to sell; many kept homes at unrealistic prices for

months or years prior to the Brexit vote. Now they are re-adjusting their sights, helping to drive the

increasing prime sales numbers in June and July. Falls in Dubai’s property prices, meanwhile, could yet

increase the appeal of the UK capital and push London into the top spot for Gulf property buyers. A

combination of new mortgage rules, years of dollar appreciation and the tumbling oil prices has seen

Dubai home prices fall 13 per cent since their peak in mid-2014, according to government data. At the

top end the story is likely to be worse.

The increase in Asian demand in London, meanwhile, represents fears of over-heating markets at home.

Average Beijing home prices fell in June, the first monthly fall since February 2015; prices in Shanghai

also fell. A June report from Deutsche Bank warned that Hong Kong home prices could fall by nearly half

over the next decade.



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What is happening in the home market of key foreign investor groups matters for London’s prime

market almost as much as what happens in London. Moody’s, a rating agency, estimates that nearly half

of London sales of more than £1 million (Dh485,000) are to foreign nationals. Central London agents

estimate that the proportion in the most desirable spots – Mayfair, Belgravia, Kensington and the rest –

is closer to 70 per cent. More than three quarters of these buyers, according to a recent report come

from Asia, the Middle East and Latin America.

This group worries little about Brexit. London has been a favoured investment location for years: few of

these buyers ever spent much time scratching their heads over what closer European integration would

bring the UK economy. They chose – and choose – London for its safe-haven credentials: political and

economic stability, the secure legal system and an easy language in which to transact. Neither these

benefits, nor the appeals of London living – excellent private schools and universities and a world-

leading cultural offering – are likely to be diminished by the UK’s EU exit.

Nonetheless, these investors are now becoming more selective. Local price data hints at the growing

fragmentation of central London’s property market as uniform price gains give way to more varied, local

price moves, creating pockets of opportunity for the discerning buyer. Investors will need a more

granular, thorough and professional approach to identify them. Broadly speaking, however – and despite

the UK’s fractious government and encroaching exit from the EU – London’s prime central market

remains a solid long-term bet.


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OFFICE VACANCY RATES DIP TO 12.9

PERCENT IN THE U.S. Friday, October 13, 2017

According to CBRE, vacant office space in the U.S. declined by 10 basis points (bps) during the third

quarter of 2017 (Q3 2017) dropping to 12.9 percent. Continuing a recent pattern, suburban office

markets continued to set the pace for declines.

The vacancy rate in suburban markets decreased 20 bps, to 14.1 percent, while downtown vacancy

dipped to 10 bps to 10.6 percent. Vacancy continued to fall in a majority of U.S. office markets, and the

national office vacancy rate remains near its post-recession low.

"The slow, steady improvement in the office market continued in the third quarter after a second

quarter pause. Demand remains positive but modest," said Jeffrey Havsy, Americas' chief economist for

CBRE.

The largest metro-area declines were recorded in Trenton (220 bps), Las Vegas (140 bps) and Phoenix

(110 bps). Tucson, Detroit, Memphis, Stamford and Richmond, each declined by 80 bps or more. In the

past four quarters, the vacancy tightening has been found in mid-sized markets located predominately

across the Sun Belt, including Tucson, Las Vegas, Albuquerque, Louisville, Orlando, Richmond, Detroit,

Sacramento, Phoenix, Memphis and Jacksonville.

"September's job report showed continued growth in office-using jobs and that growth is expected to

lead to continued but relatively modest positive absorption. The supply pipeline in certain markets has

started to increase and this may lead to a slowing of the vacancy decline in early 2018," added Mr.

Havsy.

Source: World Property Journal

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WITH FAST RISING RENTS IN U.S.,

HOUSING VOUCHERS DON'T KEEP UP Friday, October 13, 2017

According to a new report by Zillow, federal housing vouchers in the U.S. for low-income renters are too

low to cover the market rent in many of the nation's job centers - making them unusable for millions of

renters seeking assistance to cover housing costs.

Rents have skyrocketed across the country, especially in growing job markets, where high demand for a

limited number of units has made it difficult for renters of any income to find a place to live.

The U.S. Department of Housing and Urban Development (HUD) Housing Choice Voucher program is

intended to give renters enough to afford 40 percent of the rentals in their market. The value of the

vouchers is set according to HUD's Fair Market Rent index (FMR). However, Zillow's research found that

75 of the 100 largest U.S. counties do not meet this threshold. In 15 counties, voucher holders could

rent less than 10 percent of available rentals.

For the typical renter, monthly housing costs require a larger share of income than they did in the 1980s

and 1990s. For low-income renters, the situation is much worse. In nearly all of the nation's largest

markets, low-income renters can expect to spend more than 45 percent of their monthly income on rent

significantly more than the suggested 30 percent that guides most federal policy. Vouchers are designed

to help low-income renters afford housing, but long wait lists and the fact that HUD's FMRs aren't

keeping up with on-the-ground rents in many markets limit the efficacy of the program.

HUD's FMRs are not increasing at the same pace as actual rents in many places. Fair Market Rent

growth trails Zillow Rent Index (ZRI) appreciation in half of the 100 counties analyzed. In Lee County,

Florida, home to Fort Myers and Cape Coral, the FMR has risen 2.1 percent since 2012, while the ZRI

increased 43.7 percent.

In the counties where voucher-value growth doesn't keep pace with market rents, voucher-holders have

fewer options for rental units, and this is especially true in counties where rents are increasing fastest.

In Los Angeles County, rents have risen 25 percent since 2012, but FMR has grown only 6.8 percent.

Just 7 percent of rental listings in the county are considered affordable even with a housing voucher.

"Many markets with strong rent growth tend to also have the types of jobs that could help renters climb

the socioeconomic ladder," said Zillow Chief Economist Dr. Svenja Gudell. "However, many low-income

households - even those with a voucher - are increasingly being priced out of these markets, unable to

find affordable housing options near these jobs. If rents and HUD's Fair Market Rents continue to move

at different paces, this affordability crisis will only worsen for low-income renters."

In most major markets, there are far more renters who need the assistance of a housing voucher than

there are vouchers. For people who can't get a housing voucher, the consequences of rising rents can be

even more severe. In many major job markets, rising rents lead to a larger homeless population. A five

percent increase in rents in the New York metropolitan area would lead to an estimated 3,000 more

homeless people. The homeless population in Los Angeles would grow by an estimated 2,000 people if a

similar rent increase occurred.

Source: World Property Journal

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With over 30 years of Middle East experience, Asteco’s Valuation & Advisory

Services

Team brings together a group of the Gulf’s leading real estate experts.

Asteco’s network of offices in Abu Dhabi, Al Ain,

Dubai, Northern Emirates, Qatar, and the Kingdom of Saudi Arabia not only provides a deep understanding of the local markets but also enables us to undertake

large instructions where we can quickly apply resources to meet clients requirements.

Our breadth of experience across all the main

property sectors is underpinned by our sales, leasing and investment teams transacting in the market and a wealth of research that supports our decision-

making.

John Allen BSc MRICS

Director, Valuation & Advisory

+971 4 403 7777

[email protected]

Jenny Weidling BA (Hons)

Manager – Research and Advisory

+971 4 403 7789

[email protected]

VALUATION & ADVISORY

Our professional advisory services are conducted

by suitably qualified personnel all of whom have

had extensive real estate experience within the

Middle East and internationally.

Our valuations are carried out in accordance with

the Royal Institution of Chartered Surveyors

(RICS) and International Valuation Standards

(IVS) and are undertaken by appropriately

qualified valuers with extensive local experience.

The Professional Services Asteco conducts

throughout the region include:

• Consultancy and Advisory Services

• Market Research

• Valuation Services

SALES

Asteco has established a large regional property

sales division with representatives based in UAE,

Saudi Arabia, Qatar and Jordan.

Our sales teams have extensive experience in the

negotiation and sale of a variety of assets.

LEASING

Asteco has been instrumental in the leasing of

many high-profile developments across the GCC.

ASSET MANAGEMENT

Asteco provides comprehensive asset

management services to all property owners,

whether a single unit (IPM) or a regional mixed

use portfolio. Our focus is on maximising value

for our Clients.

OWNER ASSOCIATION

Asteco has the experience, systems, procedures

and manuals in place to provide streamlined

comprehensive Association Management and

Consultancy Services to residential, commercial

and mixed use communities throughout the GCC

Region.

SALES MANAGEMENT

Our Sales Management services are

comprehensive and encompass everything

required for the successful completion and

handover of units to individual unit owners.

Asteco Property Management - NEWS BRIEF 42 …ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY...

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