NEWS BRIEF 01 - Asteco Property Management...The Dubai Land Department (DLD) said on Sunday it is...




REAL ESTATE NEWS DUBAI

CAN YOUR LANDLORD HIKE RENT OF YOUR DUBAI APARTMENT? REVEALED: THIS IS WHAT DUBAI WILL LOOK LIKE IN 2014 REVEALED: DUBAI'S BIGGEST VILLA TRANSACTIONS OF 2013 WHY BUYING AN APARTMENT IN BURJ KHALIFA MAKES GREAT INVESTMENT SENSE

DUBAI'S MOST EXPENSIVE APARTMENT DEALS IN 2013 REVEALED NO VACANCY: DUBAI HOTEL ROOM RENTS SURGE 300% AHEAD OF NEW YEAR 2014

BURJ KHALIFA PROPERTY PRICES REACH FOR THE SKY ONCE AGAIN DUBAI SHOPPING FESTIVAL BOOST FOR MALL HOTELS EMIRATES REIT BUYS FLOOR ON DUBAI’S INDEX TOWER DUBAI’S NAKHEEL REPAYS DEBTS AND HAS NO MORE NEED OF STATE AID BUY A PENTHOUSE IN DUBAI AND GET A 2014 LAMBORGHINI AVENTADOR FREE

JUMEIRAH MULLS DUBAI WORLD CENTRAL PROJECTS NAKHEEL EVALUATES BIDS FOR JUMEIRAH ISLANDS PROJECT BURJ 2020 WILL BE COMPLETED ON TIME: AHMED BIN SULAYEM

ABU DHABI

ABU DHABI'S HOSPITALITY INDUSTRY: NOVEMBER PERFORMANCE TAKING TOTAL ARRIVALS TO DATE OVER 2.5 MILLION MARK

MUSANADA EXPECTS MAINTENANCE SERVICE GROWTH AS ABU DHABI ECONOMY GROWS

ABU DHABI RENT HIKES: LANDLORDS BRING PROPERTIES TO MARKET VALUE AFTER 5% CAP REMOVAL

SINOGULF GETS SET FOR NEW PROJECT IN ABU DHABI NORTHERN EMIRATES

SHARJAH TENANTS URGE CAP ON SURGING RENTS AS DUBAI BOOM BITES RAK PROPERTIES REPAYS LOAN EARLY

QATAR

DAMAC PROPERTIES ACHIEVES KEY MILESTONE IN DOHA PROJECT




CAN YOUR LANDLORD HIKE RENT OF

YOUR DUBAI APARTMENT?

SUNDAY 29 DECEMBER 2013

The Dubai Land Department (DLD) said on Sunday it is updating its rental index and initiating an awareness campaign for residents that aim to reduce rent disputes in the emirate.

The move is part of its efforts to facilitate the application of Decree No. 43, 2013, which relates to rental increases in Dubai.

" DLD is continuing in its efforts to develop mechanisms for the implementation of Decree No. 43 by updating its Rental Index database, which currently numbers more than 600,000 customers," Mohammad Khalifa Bin Hammad, Senior Manager Real Estate Relations Management, Real Estate Regulatory Agency (Rera), said in a statement.

"This action and the spreading of awareness of the decree and its implications among tenants will help ensure a consistency with rental increases, which ultimately helps the stability of Dubai," he added.

DLD Director General Sultan Butti bin Mejren told Emirates 24|7 last week that DLD’s rent index is updated and accurate.

Though no details were given of the new index features, we did report that it would be an extensive one that will take into account the view of a property unit and facilities offered in a tower.

DLD states that the initiative is especially important as the emirate stands on the cusp of a new real estate boom following the announcement of its Expo 2020 win and the large numbers of visitors expected to come to the emirate.

The index calculator, available on the DLD website, is updated around every four months, with data collated from several sources, including lease statements recorded at the department, field surveys, and follow-ups of billboards, newspapers and websites.

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Source: Emirates 24/7

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DAMAC PROPERTIES ACHIEVES KEY

MILESTONE IN DOHA PROJECT

MONDAY 30 DECEMBER 2013

DAMAC Properties, one of the region's largest real estate developers, has announced a milestone in the construction of its luxury serviced hotel apartment’s project in Doha, the Burj DAMAC Marina.

The 13th storey slab has been cast at the 20-storey mixed-use development, set in the heart of the marina district of Lusail and scheduled for completion over the next 12 months.

"Qatar is experiencing a steep growth in investment and tourism and Burj DAMAC Marina will service the influx of international visitors heading to Doha in the coming years," said Niall Mcloughlin, senior vice president, DAMAC Properties.

"We have seen a steep rise in interest in Doha, particularly in our international markets, following the announcement of the World Cup and expect Qatar to be a key market for DAMAC Properties in the coming years," he stated.

Burj DAMAC Marina comprises of more than 100 luxurious serviced hotel apartments comprising one, two and three bedrooms.

DAMAC Properties is currently developing projects in Qatar, including the Piazza, which are set to hand over to owners in the next couple of months.

Buyers from Qatar are in the top ten countries for DAMAC Properties portfolio throughout the region. Doha was the first location outside the UAE DAMAC Properties expanded operations, recognising the global interest in real estate investment in the city.

Lusail, Qatar's newest planned city is located about 15km north of the city centre of Doha, just north of the West Bay Lagoon. Currently being built over 35km, it will eventually provide accommodation for up to 250,000 people.

DAMAC Properties has completed 8,887 units to date and has a further 23,688 units at various stages of progress and planning across the Middle East region.

Work is fast progressing on the Burj DAMAC Marina.

Source: Gulf News

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ABU DHABI'S HOSPITALITY INDUSTRY:

NOVEMBER PERFORMANCE TAKING

TOTAL ARRIVALS TO DATE OVER 2.5

MILLION MARK

SUNDAY 29 DECEMBER 2013

Figures released by Abu Dhabi Tourism and Culture Authority (TCA Abu Dhabi) show that last month’s arrivals at the emirates 149 hotels and hotel apartments rose 26 percent year-on-year with some 260,810 guests checking in and delivering 856,785 hotel nights ? a 27 percent uplift on November 2012. Occupancy levels for the month lifted 10 percent to 83 percent and total revenue rose 19 percent to AED669 million (US $190.3 million).

"This is great news which we were cautiously optimistic about, given that November was packed with events including the headline Grand Prix, the Abu Dhabi Film Festival, the FIFA Under 17's World Cup and Abu Dhabi Art," said Jasem Al Darmaki, Deputy Director-General, TCA Abu Dhabi.

"It’s all the more gratifying given that since last year, the emirate has seen 12 more properties and almost 2,500 new rooms come on line.

"Length of stay which is now touching 3.3 nights continues its upward trend which suggests that people are increasingly convinced of there being ever more to do and see here." Novembers performance means that in the first nine months of this year, some 2,530,810 guests have stayed in Abu Dhabi’s accommodation which is a rise of 17 percent on the same period last year. Year-to-date, guest nights jumped 26 percent to over 7.9 million and average-length-of-stay has edged up 8 percent to 3.14 nights.

Occupancy rate for the year to date is 70 percent - up 9 percent on 2012. Total hotel revenues for the year to date is close to AED 5 billion (US $1.4 billion) up 11 percent on 2012, with F&B income representing close to AED1.9 billion (US $517.2 million), which has climbed 19 percent. Average room rate is now running at AED477.22 (US $122) which is a slight dip of 1 percent on the year.

Domestic tourism is on an upward curve jumping 6 percent in terms of guest arrivals to 865,966, yet 30 percent in guest nights to over 2 million and 23 percent in length-of-stay to 2.31 nights.

"This is heading in the right direction. More people from within the U.A.E. are choosing to stay in Abu Dhabi and for longer," said Al Darmaki. "There is a way to go, but with more events and more product coming to market soon, we have a chance to build this further." India remains the top overseas source market for 2013, with 157,594 Indians checking into Abu Dhabi’s accommodation this year a 26

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percent increase on 2012. They delivered 620,641 room nights up by a quarter year-on-year, and stay, on average, 3.94 nights.

The UK delivered 147,852 guest arrivals for the year to take second place with 14 percent uplift. British arrivals accounted for 690,902 guest nights which is up 24 percent, and they stayed on average for 4.67 nights ? an increase of 8 percent.

Germany came in third place in the overseas guest rankings with 107,264 arrivals a rise of 25 percent, translating to 521,293 guest nights which is up 34 percent and staying, on average, 4.86 nights, which is up 6 percent.

"As we enter December and look forward to significant returns from the festive and international holiday season, we can begin the New Year with a sense of satisfaction from targets achieved," said Al Darmaki.

"And with more air access uplift promised in 2014, with Etihad Airways planning daily flights from Rome, Zurich, Perth, Medina, Los Angeles and Jaipur, four weekly flights from Yerevan in Armenia and a thrice-weekly flight from Dallas Fort Worth, new business opportunities abound."

Source: Emirates News Agency (WAM)

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REVEALED: THIS IS WHAT DUBAI WILL

LOOK LIKE IN 2014


Dubai is an emirate always on the move. If you thought you had mind-framed the emirate’s roadmap at large, there is probably a road diversion, road construction or announcement of such sort taking place right then, and before you know it your previous road knowledge does no longer apply.

In the year 2013 Dubai has not remained the same. Al Khail Road had a major revamp, with stretches of widened highway and improved intersections providing better connectivity to Sheikh Zayed Road and Sheikh Mohammed bin Zayed Road (SMBZ Road). SMBZ Road was widened too in a 10 km stretch running from Arabian Ranches Interchange up to the outskirts of Abu Dhabi.

Road access in Jebel Ali villages was improved with a revamp of the western and eastern parallel roads, Jumeirah Lakes Towers (JLT) became more accessible through the opening of new connections to surrounding communities, Trade Center Roundabout saw the addition of a new parallel road connecting First Al Khail Road with Sheikh Rashid Road and Rashid Tunnel was renovated to better support high volumes of traffic.

Road development most certainly will not stop in 2013. In fact, major plans are lined up for the year 2014. While some projects have already started and are expected to see completion in the year to come, a new list of projects is ready to be kicked off in 2014.

Emirates 24/7 spoke exclusively to Maitha bin Adai, CEO of the Traffic and Roads Agency (TRA) and asked what to expect in terms of road developments in 2014.

New connections in Jebel Ali

This year the first flights took off from Al Maktoum International Airport, located in Jebel Ali area. The location is set to become the new hub of commercial activity, especially as Dubai assured hosting Expo 2020. Development of the area is in full swing, with short as well as long term projects taking place next year.

Two new connections between Sheikh Zayed Road and SMBZ Road will materialise in 2014; one through Al Maktoum Airport Street, and the other one through Jebel Ali-Lehbab Road, said Maitha. Expected to be completed in the first quarter of 2014, these connections form part of stage 4 of the Parallel Roads Project.

In the same year, the widening of Jebel Ali-Lehbab Road will be completed. With 99 per cent of the project works already completed, 2014 will see the finishing touches of the project, which mostly entail works around the first roundabout located 4 km off the Dubai - Al Ain Road intersection.

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Another connection in the area will be made between SMBZ Road and Emirates Road, just outside the premises of the new airport. The new road, named Yalayes Road, will be an extension of the road currently originating from Al Houdh Roundabout, serving Green Community and Dubai Investment Park. Although this project will not be completed for another 18 months, work on the project commenced this month.

JLT linked to SMBZ Road

JLT will be linked to SMBZ Road by the end of 2014. JLT was maybe the most discussed community of Dubai this year when it comes to traffic and road construction. As part of the Parallel Road Project, construction has taken place at several key intersections, with the aim of improving access to and from the community.

The re-opening of the most important intersections has been announced this month, and with that most of the work has been completed. However, one project is remaining, said Maitha: the construction of the link to SMBZ Road. This project is currently under construction and expected to be completed in the fourth quarter of 2014.

Business Bay-Al Khail Road connection

A new road will be established in Business Bay leading to Al Khail Road. As part of the Parallel Roads Project, traffic improvements were made this year aimed at enabling smooth traffic between the community and Sheikh Zayed Road and Al Khail Road. However, access to Al Khail Road remains limited to this point.

Work on a new road will commence in 2014, enabling free traffic flow from Al Khail Road to Business Bay, said Maitha. The time frame of the project is unclear.

Widening and Improving of Umm Suqeim Road

In an effort to increase the connection between Sheikh Zayed Road, Al Khail Road and SMBZ Road, the improvement of one such link –Umm Suqeim Road- will take place in 2014. The launch of phase 1 and 2 of the project was announced to be no sooner than January and February 2014 respectively, and all the work is expected to be completed by the end of 2014.

The improved link will enable free traffic movement for vehicles coming from Sheikh Zayed Road, passing through Al Khail Road interchange, Arabian Ranches interchange and heading towards Al Qudra Road and Sheikh Mohammed bin Zayed Road; and in the opposite direction from Arabian Ranches interchange to Jumeirah through the interchanges of Al Khail Road and Sheikh Zayed Road.

More connecting roads in 2014

Umm Suqeim Road and the new Jebel Ali connections are not the only additions that will be made in 2014 to improve the connection between the main roads of Dubai. In order to link Sheikh Zayed Road with SMBZ Road, the improvement of Al Sabkha Road is currently under construction and planned for completion by the end of 2014.

Moreover, as part of the Parallel Road Projects Al Asayel Road will be extended to connect to Oud Metha, in a project expected to be completed in 2014, said Maitha.

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Dubai Creek extension

One of the most ground-breaking projects of Dubai at the moment is the extension of Dubai Creek. Although this project will take three years to be completed, development will certainly be seen in 2014.

The three-kilometre long project, which has been named Dubai Canal, will lead the already extended creek from Business Bay area all the way to Jumeirah beach, cutting through Sheikh Zayed Road, Safa Park, Al Wasl Road and Jumeirah Beach Road.

Alternative roads will need to be constructed, and works with that aim have already commenced. Eventually, a 16-lane tunnel on Sheikh Zayed Road will be constructed, as well as two bridges crossing Al Wasl Road and Jumeirah Road.

More projects to kick off in 2014

Many other projects are expected to be launched in 2014. According to Maitha, Meydan Road Corridor will be improved, the road to Dubai Internal Airport will be expanded at Al Ittihad Bridge, Al Wasl Road and Jumeirah Beach Road will be improved, works will commence on Al Houd Roundabout, Academic City Road will be extended, Al Aweer Road will be improved and International City will become more accessible.

Internal road improvements will be realised within communities such as in Oud al Mateena 2, Al Mamzar and Al Nahda and Sama al Jadaf. Road pavements will be laid in Al Safa 2, Umm al Shief and Al Manara, while footpaths will be built in Safa 1 and a cycle track will be realised in Al Sufooh and Al Mamzar Park.

Furthermore, currently controlled parking areas such as Tecom, Al Nahda 1, Al Mamza and Al Warqa will be rehabilitated and improved parking options will be established at mosques, Maitha concluded.


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REVEALED: DUBAI'S BIGGEST VILLA

TRANSACTIONS OF 2013

TUESDAY 31 DECEMBER 2013

Emirates Hills

The costliest villas in Dubai were sold in Emirates Hills in 2013, with nine of the top 10 transactions taking place there, data shared exclusively by Reidin.com with Emirates 24|7 reveals.

The biggest villa deal took place in Emirates Hills, which sold for a whopping Dh67 million in 2013. The transaction, registered in September, saw the buyer paying Dh2,692 per square feet.

Of the top 10 villa transactions registered by Dubai Land Department, nine were in Emirates Hills and one on the Palm Jumeirah.

A villa sale in Palm Jumeirah took the second spot on the list, as the buyer paid Dh55 million, or Dh4,105 per square feet.

A 54 million, Dh52 million and Dh51 million transactions in Emirates Hills took the third, fourth and fifth position, respectively.

Prices for the transactions (third to 10th on the list) ranged between Dh1,200 and Dh3,600 per square feet.

Emirates Hills are luxury-detached villas that have been sold as plots to investor to build their properties on.

Reidin.com is an exclusive and primary data source for real estate markets in the emerging countries.

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The Wealth Report 2013, produced by Knight Frank, a global property company, revealed that Dubai's prime luxury properties were over 10 times lower than Monaco, the world's most expensive residential property market.

At the beginning of the year, Craig Plumb, Head of Research, Jones Lang LaSalle Mena, while announcing the "Top Trends for the UAE real estate market in 2013", had said: "Price and rent recovery are likely to be more broader this year than 2012 when it was limited to few selected locations. We saw price growth in Dubai by 20 per cent in 2012... we will not see prices increasing 20 per cent this year, but overall rate of growth will be less than last year."


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WHY BUYING AN APARTMENT IN BURJ

KHALIFA MAKES GREAT INVESTMENT

SENSE


Prices of residential apartments in Burj Khalifa, the world's tallest tower, have risen 25 per cent in 2013, according to Cluttons.

A review of prices over the past four years by the global property consultancy reveals prices of residential units rose by 13.6 per cent since handing over of the units in January 2010.

In 2008, Mohamed Ali Alabbar, Chairman, Emaar Properties, had said that apartments were selling for over Dh10, 000 per square feet (psf). But price fell to a low of Dh2, 400 psf in 2009-10 following the global economic crisis.

Currently, apartment values stand at Dh3,750 psf, which is a 50 per cent increase on the February 2009 figure, Cluttons said. Values have risen by 87.5 per cent since units were first launched in July 2006.

Average sale prices stood at Dh3,362 psf in the first five months of 2013 compared to Dh2,550 psf compared to the same period last year, data shared exclusively by Reidin.com with Emirates 24|7 had revealed. Read: Dubai's Burj Khalifa 2013 prices up 32%

Capital value in Burj Khalifa rose by 27 per cent in the year to June 2013, Knight Frank, a global property consultancy, had said.

"Prices increased by 40 per cent briefly at the peak of the market but then dropped top below the off plan prices for the following four years until regaining their original value in Q2 2013," the consultancy said.

Steve Morgan, head of Cluttons Middle East, said: "Looking back at market data prior to the economic downturn, there have been fluctuations in apartment values at the Burj Khalifa each quarter since its launch. They were up a staggering 44 per cent in the second quarter of 2008.

"In 2013, prices for apartments in the tower have risen by 25 per cent, which has been supported in part by continued optimism surrounding Dubai's economic buoyancy and also by on-going growth in investor interest in our city's real estate market."

Owners of residential units have to pay Dh70.02 per square feet compared to Dh55.01 psf in 2012. In 2011 and 2010, the charges were Dh55 and Dh52.77 psf, respectively. Read: Service charge hiked by up to 37% at world's tallest Burj Khalifa

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Burj Khalifa (2,717-feet) has 900 studio, one-, two-, three- and four-bedroom apartments, while there are 144 private Armani Residences. Cluttons stated that their calculations exclude Armani apartments.

The tower offers luxurious recreational and leisure facilities including four swimming pools, an exclusive residents' lounge; health and wellness facilities; Atmosphere, the world's highest fine dining restaurant at level 122 and At the Top, the world's highest observatory deck with an outdoor terrace on level 124.


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DUBAI'S MOST EXPENSIVE APARTMENT

DEALS IN 2013 REVEALED


Dubai Marina registered the maximum number of the biggest apartment deals in 2013, but the costliest transaction was done in Palm Jumeirah, Emirates 24|7 can reveal.

An apartment in Fairmont the Palm was sold for Dh42 million, topping the list of the biggest transactions of the year, according to information provided by Reidin.com to this website.

Reidin.com is an exclusive and primary data source for real estate markets in the emerging countries.

The second place went to an apartment transaction in Le Reve (French for 'The Dream'), in Dubai Marina, which was bought for Dh38 million.

Six of the top 10 biggest deals took place in the ultra-luxury tower, totaling over Dh148 million.

The third place on the list, once again, went to apartment in Fairmont the Palm. It sold for Dh33 million followed by a Burj Khalifa apartment in the fourth place, which sold for Dh29.8 million.

In the fifth place was an apartment in Armani Residences Burj Khalifa. It was purchased for Dh25.44 million.

The last five positions were held by apartment deals registered in Le Reve tower. Two transactions of Dh24 million each took the sixth position, with a Dh23 million, Dh20 million and Dh19 million deals taking the last three places.

Dubai remains the hottest property market in the world with prices rising at the fastest pace this year amongst the 41 global cities it compares, UK-based Global Property Guide has said.

The organisation, which collates real estate data from across the world, revealed price jumped 6.48 per cent in third quarter compared to second quarter, while year-on-year increase was 21.37 per cent.

Goldman Sachs Group, a US-based investment bank, said earlier that property prices were 36 per cent below their 2008 peak even after rising by about a third from a low in the second quarter of 2011.

Moreover, Knight Frank, UK-based consultancy, believes property prices will jump by 10 to 15 per cent in 2014 driven mostly by Expo 2020 development, buyer incentives and a relaxation of cooling measures.


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NO VACANCY: DUBAI HOTEL ROOM

RENTS SURGE 300% AHEAD OF NEW

YEAR 2014


As the city gets ready to welcome 2014 by setting new world records, hotel room rates in Dubai seem to be soaring at levels not seen in recent past.

Booking websites reveal that room rates in the city seem to have doubled for spending the New Year’s Eve in Dubai.

Room rates at all Dubai hotels - luxury, mid-scale or budget - have been going up since mid-December, and prices on the last year of 2013 surge by up to 300 per cent or even more in some cases.

While this time of the year is usually extremely busy for Dubai hotels, this year there's the added attraction of the city set to register a world record in fireworks. This coupled with Dubai's growing allure for tourists and visitors from across the Gulf and around the world means that hotels in Dubai are making a killing on room rates.

For example, a room in Mina A' Salam at Madinat Jumeirah is priced at Dh2, 450 per night if you check in on the 29th of December and check out the next day. Come 31st and this rate doubles to Dh4,900.

On the 31st Armani hotel is fully booked out with the only option of Armani Dubai Suite which is priced at Dh40, 000. The other two options are Armani Fountain Suite and Armani Executive Suite but can only be taken for a minimum stay of three nights. If we check the rates in the first week of January it comes down to nearly half with the Armani Dubai Suite priced at Dh22,000.

Atlantis, where the big show will take place, seems to be fully booked out. A Palm Beach deluxe room is available for Dh3, 960 today but all rooms are fully booked for the New Year.

Even the so called affordable hotels have become pricey and most of them are fully booked out. Popular hotels like Holiday Inn Downtown Dubai, Four Points by Sheraton Bur Dubai, Holiday Inn Bur Dubai and many more have no rooms available.

And the ones available have jacked up the rates just as others. In Lotus Hotel Dubai you can get a room for Dh1,799 whereas Metropolitan Palace Hotel will charge you Dh2,291 for the night. The hotel charges Dh631 if you spend one night before the New Year.

And, these rates are not all inclusive. There may be more charges to make the deal even costlier.

The UAE's hospitality industry is thriving now and this trend is expected to continue as Dubai and the country will become a sought-after destination for international visitors by 2020, the time when the city hosts the World Expo.

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The UAE is already among the top five countries in the world for new hotel openings over the past five years. The hospitality industry in the UAE saw positive growth throughout the first 11 months of 2013.

Dubai, Middle East's hospitality, tourism and shopping hub, is the world's biggest growing market outside of China since 2008 as far as new hotel openings is concerned. The city has been named a top 10 global destination for business, leisure and shopping tourists, as per a research exercise by Genesis Consulting ME.


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BURJ KHALIFA PROPERTY PRICES

REACH FOR THE SKY ONCE AGAIN


Even before it was built, the Burj Khalifa served as a barometer of the health of Dubai’s fast-changing property market.

Launched as a project in July 2006 as a flashy marker of Dubai’s ambitions to become a leading global city, prices grew almost as quickly as the building work. By the second quarter of 2008, prices had swelled 44 per cent from the earlier quarter.

Then the onset of the property downturn sent prices sinking from a peak of Dh9,000 per square foot in August 2008 to Dh2,500 by February 2009.

But as the fourth anniversary of the building’s completion approaches on January 4, prices have perked up again, mirroring gains in the wider market.

“Looking back at market data prior to the economic downturn, there have been fluctuations in apartment values at the Burj Khalifa each quarter since its launch,” said Steve Morgan, the head of Cluttons Middle East, an independent partnership of chartered surveyors.

“In 2013, prices for apartments in the tower have risen by 25 per cent, which has been supported in part by continued optimism surrounding Dubai’s economic buoyancy and also by ongoing growth in investor interest in our city’s real estate market.”

Prices now stand at Dh3,750 per square foot, a 50 per cent rise from the level of February 2009, said Cluttons. It means since off plan residential units were first sold for the development in July 2006, overall values have risen by 87.5 per cent.

“Residential value performance in the Burj Khalifa mirrors the performance of Dubai’s broader residential landscape,” said Mr. Morgan.

After crashing by as much as 60 per cent during the global financial crisis then bottoming out and starting to rise again last year, Dubai house prices surged during 2013. Residential sales prices were up 24.5 per cent last month from their year earlier value, according to data released yesterday by Reidin.com.

But even with the rise, average values remain below the level of the Burj Khalifa, one of the most exclusive residences. Across Dubai, average property prices stood at Dh1,359 per square foot, according to Cluttons.

The IMF has been among observers cautioning about the risk of the inflation of a price bubble in the property market as investors and liquidity have returned to the economy.

But Cluttons said the scale of the recovery, both in the Burj Khalifa and wider emirate, indicated “sustainable growth”.

Source: The National

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USANADA EXPECTS MAINTENANCE

SERVICE GROWTH AS ABU DHABI

ECONOMY GROWS

WEDNESDAY 01 JANUARY 2014

Musanada, property-services company responsible for overseeing and maintaining Abu Dhabi government buildings, expects to increase its maintenance services by 30 per cent over the next 12 months as the emirate’s economy expands.

The UAE economy is projected to grow by 3.9 per cent this year, according to the IMF.

“[The UAE’s] is a growth story that has substance, and it’s gaining momentum,” said Simon Williams, HSBC’s chief economist for the Middle East and North Africa. “A significant recovery in infrastructure spending in Abu Dhabi” was behind the gains, he said.

Musanada increased its revenues by 34 per cent last year.

The Government awarded Musanada Dh667 million for maintenance, building rehabilitation work, and agriculture, compared with Dh496m of contracts last year.

The number of government properties it maintains has increased by 16 per cent over the past two years. It directly manages 3,300 buildings in Abu Dhabi and provides maintenance services to an additional 5,500.

The company is owned by the Government and submits tenders to third-party contractors. Last year it awarded 70 contracts to about 50 contractors, the majority of which were international firms working with UAE partners.

Musanada is a non-profit company and evaluates the cost of tenders before receiving funds from the government.

This included Dh197m of work orders, which are one-off requests for maintenance tasks.

The company maintains more than 2,000 mosques, including the Fatima bint Mubarak mosque in Mohammed Bin Zayed City, and 64 schools.

In December, the company signed a contract with several construction firms to organize work on a new road between Abu Dhabi and Dubai. The 30-month project will connect Mohammed bin Zayed Street to Dubai through Al Sweihan Road.

It has also implemented a deal to build a 719-bed hospital in Al Ain, having procured construction services from Arabtec and Spain’s Sanjose Constructor.

The company was founded in 2007 after the Abu Dhabi Government Restructuring Committee recommended establishing a company to provide shared services for state-owned properties.

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The company has 111 employees and was established in 2007 to provide shared services to the government of Abu Dhabi.

“Musanada is keen to provide high quality services to all government departments in accordance with the highest international standards, using the latest technology, and in conformity with international best practices,” said Saif Fadel Hamli, Musanada’s executive director of business services.


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DUBAI SHOPPING FESTIVAL BOOST

FOR MALL HOTELS


Dubai hotels attached to malls are gearing up for the 19th edition of the city’s shopping festival as analysts expect new records for the hospitality sector.

Last January, occupancy rates at Dubai’s four- and five-star hotels touched 89.8 per cent, steadily going up from 83.1 per cent in 2011, according to TRI Hospitality Consulting. The average room rate was US$347.78 per night last January, rising from $297.75 in 2011.

“The positive trend seen in the market throughout this year is expected to continue through the next quarter, and January 2014 is likely to see record performance for Dubai hotels,” said Rashid Aboobacker, a senior consultant with TRI Hospitality Consulting.

At the Kempinski Hotel at Mall of the Emirates, the general manager, Konstantin Zeuke, has put the porters and bellhops on alert, especially during the peak time of 8pm to 10pm as guests emerge from the mall to drop into their rooms.

“Since we are directly connected to the mall, the Dubai Shopping Festival is an automatic advantage for us as shoppers want to stay as close as possible to the mall,” he said.

A majority – 60 per cent – of his guests are from the Arabian Gulf region, with those from Saudi Arabia, Qatar and Abu Dhabi dominating. Many of the rest are from the United Kingdom, Germany, Spain, Italy, Kenya and Nigeria.

During the past few years, the hotel has also seen an increasing number of guests from South America, even though the numbers are small, around 5 per cent of the total guests.

The hotel expects occupancy of 90 per cent in January, up from 85 per cent last year, and room rates starting at Dh1,600 per night for the month, an increase of about 10 per cent. During the first weekend of DSF, its grand ski chalet with two-bedrooms is going for Dh10,000 per night.

At Madinat Jumeirah’s Mina A’ Salam hotel, rooms during DSF’s first weekend start at Dh4,000 per night, while those at the adjacent Al Qasr Hotel start at Dh4,700 per night and go up to Dh6,700. The figures are double the weekend rates in April, for instance, which start at Dh2,000.

In 2012, DSF attracted more than 4.3 million people, 10 per cent more than in 2011, who spent $4 billion during the month-long festival, according to its organisers, Dubai Festivals and Retail Establishment, an arm of Dubai Tourism and Commerce Marketing.

It conducted the study in association with the global research firm YouGov.

Of the 895,000 international visitors, about 28 per cent were from Europe followed by the Arabian Gulf and South Asia.

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Originally conceived as a way to promote Dubai, DSF is now among a host of other attractions which also caters to the neighbouring emirates, said Chiheb Ben Mahmoud, the executive vice president and head of hotels and hospitality group for Middle East and Africa for Jones Lang LaSalle.

Neighbouring Abu Dhabi, which opened the luxury shopping mall The Galleria on Al Maryah Island in August, is expecting to harness the enthusiasm among out-of-town shoppers.

“We haven’t done any comparison study but we benefit from the close proximity to Dubai and do see visitors coming from Dubai to shop here,” said Mohammed Al Dhaheri, the director of strategy and policy of TCA Abu Dhabi.

Occupancy rates for January in Abu Dhabi hotels have increased as well over the past three years. Last January, it stood at 80 per cent, up from 62.60 per cent in 2011. Room rates have fallen, however, touching $135.31 per night last January from a high of $191.16 in 2011, according to TRI Hospitality Consulting.


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SHARJAH TENANTS URGE CAP ON

SURGING RENTS AS DUBAI BOOM

BITES

SATURDAY 04 JANUARY 2014

Tenants in Sharjah have called for a cap on soaring rents. They accuse landlords of exploiting the rising demand for homes, caused by the property boom in neighbouring Dubai.

Sharjah residents, already complaining about a rise in rent, have been given a double blow by being told that Mawaqif has increased the cost of residents’ parking.

According to Al Ittihad, the Arabic-language sister newspaper of The National, residents in many areas said landlords have doubled the costs of Mawaqif parking, from Dh2,000 to Dh4,000 a year, cashing in on the rising rents in the emirate.

The residents have called for free parking spots for every tenant. Sharjah Police said that the landlord-tenant law does not stipulate parking spaces for tenants’ vehicles, but it does protect tenants, noting that the landlords cannot increase the cost of parking if this requirement is stipulated in the lease agreement.

“The rental cap is the only protection officials can give to residents,” said Suleiman, who lives in the Al Khan area where his rental contract expires next month.

The owners of his flat are asking for an annual rent of Dh36,000, up from the current Dh20,000, and they have told him to either pay the amount or leave.

“The owners are calling me every minute to come to their office and give them cheques or confirm that I am leaving,” said Suleiman.

Annual rents for one-bedroom apartments in Al Nahda and Al Khan are currently between Dh23,000 and Dh30,000, up from Dh18,000 last year.

In once affordable areas such as Al Qassimiya, Al Shuwayehen, Al Rolla, Al Butina and Al Nabba, a one-bedroom flat now fetches a rent of Dh20,000 to Dh26,000, up from Dh17,000 a year ago, while rents for two-bedroom flats are between Dh25,000 and Dh35,000 in most areas.

Ahmed, a resident in Al Nasiriya, said: “Everything is going up – from food to rent, except salaries. What will the poor people do? We ask the media to take our voices to the authorities to institute at least a rent cap and protect us in some way.”

But according to a municipality spokesman, Sharjah affords tenants better protection than other emirates. For instance, landlords are not permitted to raise the rent for the first three years of a contract, and can only do so every other year thereafter.

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“For the fourth year, he [the landlord] can increase [the rent], and for the fifth year he cannot. Then for the sixth year he can and the seventh year he cannot,” said the spokesman, adding that a tenant could file a case at the municipality rent dispute settlement committee.

Mohammed Zaimukhes, a resident in Al Khan, one of the areas worst-hit by the rent rises, said he would have to move to Ajman next month when his contract expires.

“Unless there is a rent cap in Sharjah, one cannot live in such an uncertainty of how much a landlord can increase,” Mr. Zaimukhes said. “My landlord wants a Dh10, 000 increases next year. Where on earth could such a high increase be justified?”

Property companies, however, say rents have been too low for years. One leasing agent said the rent increases were justified because tenants had been paying rents far below their real cost.

“The rent in Sharjah went down so much in the previous years,” he said. “Real estate owners were patient despite making losses and lease out their buildings at prices far below their real investment. “Now it is time that tenants accept paying the worth of their buildings and relieves the owners of their burden.”

Saleem Al Kaabi, the director of Sharjah’s rental disputes section, said it handled more than 4,000 cases last year. Most were related to arbitrary increases even within the first three years of the contract.

Mr. Al Kaabi predicted rents would continue to rise after Dubai’s successful bid to host Expo 2020.

But those who are considering a move to other emirates, such as Ajman, may have to rethink their plan. Tenants in Ajman are also feeling the effect of rent increases, with some saying that the 20 per cent rent cap in the emirate is inadequate.

Geofrey Lusaggi, who lives near to the Ajman Free Zone, said the building where his flat is located is managed by a firm in Fujairah. Its representatives visit once a month to collect the rents, he said.

“When he [the representative] turned up this time, he gave us notices to increase the rent from Dh16, 000 to Dh22, 000, beyond the cap,” said Mr. Lusaggi.

“Tenants were crying to him all over the building. He maintained that he had one message from the owner – pay if you have the money or leave if you don’t.


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EMIRATES REIT BUYS FLOOR ON

DUBAI’S INDEX TOWER


Emirates REIT, the UAE’s first property investment trust, said it had acquired the seventh floor of Dubai’s Index Tower from the Egyptian investment bank EFG-Hermes in exchange for a 4 per cent stake in the trust.

The Dh1.2 billion trust, which buys property and distributes rental dividends to shareholders, said yesterday it had also bought, from the Dubai-based bank Emirates NBD, those parking spaces in the tower that it did not already own.

The seventh floor of the Index Tower has 22,000 square feet of commercial space. The building has 698 parking spots.

Located at the Dubai International Financial Centre, the Index Tower was designed by Norman Foster, the British architect whose other projects in this country include Abu Dhabi’s Masdar Institute, Central Market and Zayed National Museum (the latter scheduled to open in 2016).

We are especially pleased to be able to increase our presence in Index Tower, which we believe to be one of the most significant landmarks in the DIFC and one that holds considerable potential for both strong lease revenue and capital appreciation,” Sylvain Vieujot, the deputy chairman of Emirates Reit Management, said.

Emirates REIT, established in 2010, also said it had increased its shareholder base through a capital increase in the last quarter of 2013. Under the increase, Emirates NBD took a 5 per cent stake in the company, Singapore Enterprises 3 per cent and an assortment of private investors 1 per cent.

“The quality and performance of our portfolio has attracted renowned players in the industry. These relationships help us diversify and strengthen our shareholder base,” Mr. Vieujot said.

Singapore Enterprises, a privately owned firm, also has the biggest shareholding in Sabana Shariah Compliant Industrial Real Estate Investment Trust, the biggest publicly traded Islamic Reit in the world by total assets and market capitalisation of S$742.6 million (Dh2.15 billion) as of last June 30.

Most REITs, or real estate investment trusts, around the world are publicly traded and if Emirates Reit were to list its shares, it would be the first REIT do so in the UAE. Emirates REIT’s eight investment properties in Dubai include Gems World Academy, Indigo 7 on Sheikh Zayed Road and Office Park in Dubai Internet City.


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DUBAI’S NAKHEEL REPAYS DEBTS AND

HAS NO MORE NEED OF STATE AID


Nakheel is to repay big chunks of its multibillion-dirham debts ahead of schedule and has no further need of financial aid from the Government. The Dubai property developer’s move, announced yesterday, is further evidence of the continued recovery in the emirate’s economic fortunes, and of the company’s improved financial position.

In 2009, at the height of the global financial crisis, Nakheel’s debt burdens were a major factor in the turmoil that threatened to derail the emirate’s economy.

Yesterday, the Nakheel chairman Ali Rashid Lootah said the company would repay more than a third of its total bank debt of Dh6.8 billion, due for repayment in September 2015, in the current quarter. A total of Dh4bn would be repaid this year.

“The early repayment of Dh2.35bn – a major milestone in the company’s history – reflects the strength of the local real estate market, significantly improved economic conditions in the UAE, and the growing trust and confidence among investors in Dubai and Nakheel,” Mr. Lootah said.

“By 2018, we will be a debt-free company,” he added.

“In 2011, Nakheel pledged to construct and deliver some 9,000 units over a five-year period across a number of projects that had been stalled during the global financial crisis.

“We rose to this challenge and, thanks to the support of the Government of Dubai, Nakheel customers and others stakeholders, have been able to achieve this remarkable milestone.”

The turnaround in Nakheel’s fortunes means that it has used up only a small proportion of the cash that the Government made available in the form of equity at the time of the restructuring in 2011. Of Dh16.6bn pledged by the Government’s financial support fund, only Dh1.4bn had been used, Mr Lootah said, and Nakheel needed no further support.

Nakheel’s move is part of a trend of prompt repayment of liabilities by Dubai state-related enterprises.

Dubai World, the company that controlled Nakheel until it was taken over directly by the Government in 2011, has been raising cash through asset sales to meet a $5.5bn debt commitment next year, while Dubai Holding has also been selling assets and raising cash.

The IMF estimates Dubai has to meet $85bn of maturing debt by 2017.

Mr Lootah said that revenues and profits had doubled since 2011, and there had been a threefold increase in cash flow in that period.

“This strong financial performance is the result of Nakheel recommencing all 10 of its “near term” projects, giving the required impetus to the local real estate market by providing opportunities for local contractors to restart construction activity in Dubai,” he added.

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“The result of these efforts is borne out by the fact that by the end of 2013, Nakheel had handed over 7,000 units to consumers and paid amounts aggregating to Dh12.3bn to various contractors, creditors and suppliers since the restructuring began in November 2009. Our financial performance has significantly exceeded the revised business plan, leading to improvements of approximately Dh22bn over the plan period,” Mr. Lootah said.

The company, renowned for the Palm Jumeirah development, has also launched new projects. There are more than 3,500 units with an estimated current value of Dh10bn in the pipeline.

Mr. Lootah confirmed that Nakheel would consider an initial public offering of shares once its financial restructuring is complete, but added: “That [an IPO] is a decision for the shareholder. We have to deal with the debt.”

He said he was still in talks with bankers about refinancing the terms of some of its bank loans, which extend until 2018. “I’ll be waiting to see how they react to this [the early repayment announcement]”.

The future strategy of the company would be to focus on retail and leisure developments, as well as top-end residential projects. Those earmarked for the near term include The Pointe development on Palm Jumeirah, and further work at the Al Furjan site.

“We will go where we have existing infrastructure, because building that is an expensive affair,” he said.

He said that resumption of the Jebel Ali project would depend on how quickly and efficiently infrastructure could be provided. “It’s not on our immediate radar,” Mr. Lootah said.


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RAK PROPERTIES REPAYS LOAN EARLY


Ras Al Khaimah’s largest developer is repaying a loan ahead of schedule in a move that reflects the robust state of the emirate’s property sector.

RAK Properties said yesterday it would repay the Investment and Development Office (IDO) of Ras Al Khaimah US$22.32 million, due in July, along with an early settlement fee.

The company termed the move as cash-flow planning and said it would save on finance costs.

The developer’s third quarter profits fell 55 per cent and net income touched Dh30.3 million from Dh67.5m in the same period in 2012. The developer had attributed the fall to money set aside for impairment and rising expenses.

In 2009, RAK Properties received $150m from IDO to finance existing and future projects.

A week ahead of Cityscape last October, RAK’s largest developer launched 104 waterfront Flamingo Villas and two 20-storey apartment buildings in Lagoon Heights, and sold 50 per cent of the villas within a few days.

The latest phase cost RAK Properties Dh400m with prices for the villas ranging from Dh750,000 to Dh2.5m, said the company’s director of marketing and sales, Rashed Sultan Al Khatri. The company expects to sell 75 per cent of the units off plan, with handover in two years.

Apartments, which will be for lease only, are expected to hit the market by 2016.

Flamingo Villas and Lagoon Heights are part of the 30 million square foot Mina Al Arab development, which was launched in 2005 and is under progress in phases.

The project’s previous phases included 307 villas, which had prices from Dh2m to Dh5.2m and were sold out by 2011. The earlier phases included 808 apartments at prices between Dh295,000 and Dh1.2m.

Yesterday on the Abu Dhabi Exchange, RAK Properties’ shares closed at 98 fils, down a fil from Monday’s close, which was their peak for the year. They started 2013 at 38 fils apiece. The emirate’s property values have been rising throughout the year.

In 2013’s first quarter, RAK’s real estate prices rose by as much as 16 per cent, according to Al Hamra Real Estate Development, which developed flats and villas in Al Hamra Village.

The property company Cluttons said in June that new one-bedroom flats in RAK were selling for about Dh350,000, while rents were about Dh30,000 annually early in 2013.

Prices have generally risen since then, though amounts vary according to location.

A studio in Mina Al Arab is selling for Dh250, 000, while a one-bedroom in Julphar Tower fetches Dh600, 000, according to postings in Dubizzle.

A 5,436 sq ft, four-bedroom villa is going for Dh5m, while a 2,700 sq ft, three-bedroom villa has an asking price of Dh1.68m. Both are in Al Hamra area.


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ABU DHABI RENT HIKES: LANDLORDS

BRING PROPERTIES TO MARKET VALUE

AFTER 5% CAP REMOVAL SUNDAY 05 JANUARY 2013

Landlords and property agencies in Abu Dhabi have put tenants on notice to either accept rent increases or to vacate the properties at the end of the leases.

According to a report in Emarat Al Youm, several tenants have reported receiving notices informing them of the same.

The move comes in the wake of Abu Dhabi abolishing the five per cent rent increase ceiling limit in November 2013 and landlords are now moving to raise rents to bring them on par with current market valuations.

Some tenants, quoted in the report, claimed that the rent hikes were as much as 50 per cent of the original lease.

Abdullah, a resident in a building on Istiklal Street in Abu Dhabi said residents of the building were surprised to receive a notice to evacuate their flats within two months.

He added that they then received a phone call from the real estate company managing the property stating that the possibility of extending the contracts was only in the event of a rent increase, ranging between 30 and 50 per cent.

He says he has been renting his flat for the past 13 years; the original rent being Dh40,000, with increases of five per cent per year.

He claims the landlord now wants him to pay Dh90,000 per year and feels the increase is unjustified.

One tenant who approached the Rent Dispute Committee was asked to deposit the annual rent with the committee and file a complaint against the landlord.

The report quoted a cross-section of Abu Dhabi residents who claimed to have received notices of rent increases.

Mohammed Abu Hachim, resident of a building in Al Jawzat Street said his landlord told him that the rent will be increased by about Dh35,000.

Bahija Ismail, who lives in a building in Khalifa Street and pays a rent of Dh60,000 a year, said her landlord wants Dh100,000 a year to renew her contract..

The report quoted Ahmed Salim, a legal advisor, as saying that the increases are based on the rules of supply and demand and after a short period of instability, the whole market would stabilise.


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BUY A PENTHOUSE IN DUBAI AND GET

A 2014 LAMBORGHINI AVENTADOR

FREE

THURSDAY 02 JANUARY 2013

Buyers of penthouses in Damac Maison, The Dubai Mall Street will be given a 2014 Lamborghini Aventador as part of the company's Dubai Shopping Festival (DSF) promotion.

"Customers buying a penthouse in Damac Maison, The Dubai Mall Street during DSF will be given a 2014 Lamborghini Aventador roadster with their purchase," the company said in a statement sent to Emirates 24|7.

Designed by German architects Koschany & Zimmer, the tower is Damac's first service hotel apartment project.

Buyers in other select properties will receive either a BMW or a Mini Cooper, depending on the size of the unit.

"Damac Properties' DSF promotion is always highly anticipated and we see some of the best results of the year during this time," said Niall McLoughlin, Senior Vice President, Damac Properties.

In 2013, penthouse buyers were offered a 2014 Audi R8; buyers of three-bed units will given an Audi A8; two bedroom were given an Audi A6 and one bed got an Audi A4.

In 2012, the developer offered a Lamborghini to penthouse buyers in their premium developments such as Ocean Heights, Burjside Boulevard and Damac Heights.

Damac Maison - The Distinction and Damac Maison - Upper Crest and Damac Residenze in Dubai Marina and a number of other projects are also part of 2014 DSF promotion.

Over the years during the DSF, Damac has given away luxury cars, yachts, a private jet and a private island in the Caribbean.


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JUMEIRAH MULLS DUBAI WORLD

CENTRAL PROJECTS

THURSDAY 02 JANUARY 2013

Jumeirah Group, a luxury hotel chain and a member of Dubai Holding, could be launching projects in Dubai World Central (DWC), the site that will have the infrastructure for World Expo 2020.

“With the World Expo 2020, we look forward to being involved in a number of projects that will take place for hotels in Dubai over the coming years… we have [had] discussions [for projects in DWC] and are waiting for announcements,” Gerald Lawless, President and Chief Executive Officer of Jumeirah Group , told Gulf News in an interview.

Jumeirah has 22 hotels and residences across 10 destinations in the world, including in the UAE, Kuwait, Maldives, the UK, Germany, Spain, Italy, China, Turkey and Azerbaijan.

Lawless said that Expo 2020 “will broaden” the hotel market in Dubai and the UAE.

In the years to come, more three- and four-star hotels are expected to be developed, as well as five-star hotels, after an incentive was introduced in September to build more three- and four-star properties in Dubai.

With Expo 2020 coming to Dubai, there is “great confidence” in the market, he said. “There is a sense of purpose about working hard now to ensure that we have an appropriate tourism product well in time for Expo 2020.

“It’s a dynamic time for hotel development in Dubai and the Middle East… travel and tourism seems to be the growth industry [for] the years to come,” Lawless said.

Financing

Jumeirah has no plans to raise more finance through sukuk or bonds, according to Lawless. “I would think not. We are in a good position at the moment funding-wise,” he said when asked about the group raising more finance.

In October, Jumeirah said it raised $1.4 billion unsecured syndicated loan due in 2019 to help finance its expansion.

Expansion

With 15 properties in the pipeline, Jumeirah is working on five projects in China, of which three are under construction and two about to kick off. These include Jumeirah Guangzhou, Jumeirah Macau, and Jumeirah Clearwater Bay Resort in Sanya, Jumeirah Hangzhou and Jumeirah Thousand Island Lake Resort, Qiandaohu.

“The serviced apartments in Guangzhou will open at the end of 2014, and the adjacent hotel will open in 2015. The Hangzhou [property] is due for opening in 2017,” Lawless said.

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Meanwhile, the group expects to open Jumeirah Bali, comprising 80 suites and 24 private villas, in 2016, and Jumeirah at Saraya Bandar Jissah in Oman in two-and-a-half to three years’ time.

Jumeirah hotels are performing well in terms of occupancy, according to Lawless. The group’s beach resorts in Dubai achieved an occupancy rate of 82 per cent year-to-date (December 29), with an average daily rate of Dh2,088, according to data provided by Jumeirah.

He, however, did not disclose expected revenue and profit for the group for 2013. “We are very satisfied with results of 2013,” he said.

Asked if Jumeirah will reinstate budget brand Venu, which the group launched three years ago and then put on hold immediately after, Lawless said: “We’re keeping our powder dry on that,” without commenting further.

Source: Gulf News

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NAKHEEL EVALUATES BIDS FOR

JUMEIRAH ISLANDS PROJECT


Property developer Nakheel said on Tuesday that it is evaluating bids for the construction of Jumeirah Islands townhouses and park.

Nakheel said in a statement that it anticipates awarding the contract by late January 2014.

The project includes 84 townhouses and a 608,000 sq/ft. waterfront community recreational area.

The four-bedroom townhouses — of which 40 per cent has already been sold — each cover 3,630 sq ft and come with a double garage, maid’s room, study and private garden.

The community centre features 10 retail outlets, including a supermarket, four food and beverage outlets, and fitness and sports facilities.

“Jumeirah Islands Park will provide a new leisure, dining and shopping hub for Jumeirah Islands and surrounding areas,” the statement said.

Construction of the townhouses, park and recreation centre is likely to be completed in two years after the contract is awarded, it said.

Source: Gulf News

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DUBAI'S APARTMENTS: WHAT FIRST

RENT INDEX OF 2014 REVEALS

SUNDAY 05 JANUARY 2013

Rents across Dubai's major master communities have raised by 8 to 20 per cent in the first rental index update of 2014 compared to the last rent index of 2013, Emirates24|7 can reveal.

The index is updated by Real Estate Regulatory Agency, the regulatory arm of Dubai Land Department, every four months.

Lease rates for studios in International City, Dubai Investment Park and Discovery Gardens have gone up by 16 to 20 per cent in the new index compared to the final update of 2013.

Studio rents in International City now range between Dh30,000 to Dh35,000 per annum, while rents for studios in Dubai Investment Park, Dubai Silicon Oasis and Discovery Gardens are currently between Dh25,000 and Dh35,000 pa, Dh35,000 and Dh40,000 pa and Dh40,000 to Dh45,000 pa respectively.

Downtown Dubai continues to remain the most expensive community to rent a studio though the rents have remained stable compared to the last rent index update. Rents range between Dh65,000 and Dh75,000 pa.

Rents for one- and two-bed apartments remain the lowest in International City. One beds are available for Dh35,000 to Dh45,000 pa, while two-beds vary between Dh45,000 and Dh55,000 pa followed by Remraam, Dubai Silicon Oasis and Dubai Investment Park.

Lease rates of one and two-bedroom apartments in Palm Jumeirah have gone up between six and nine per cent. The new index puts rents for one beds at Dh130,000 to Dh160,000 pa and two beds at Dh180,000 to Dh230,000 pa.

Similarly, rents in Dubai Marina stand at Dh90,000 to Dh120,000 pa for one beds and Dh140,000 and Dh170,000 pa for two beds.

Lease rates for two beds in Jumeirah Lake Towers rose between 15 and 20 per cent. As per the latest index, rents range between Dh120,000 and Dh150,000 pa.

In December, Dubai government issued Decree No. 43 of 2013 concerning the percentages of maximum property rent increase that are allowed upon the renewal of tenancy contracts.

Although currently the index is still in its old avatar, a more detailed index that will include views of an apartment and facilities offered in a tower, etc is expected to release this year.

Source: Gulf News

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BURJ 2020 WILL BE COMPLETED ON

TIME: AHMED BIN SULAYEM


Dubai Multi Commodities Centre (DMCC) will engage service and utility providers in the emirate by early next year to ensure timely and successful completion of Burj 2020, the world's tallest commercial tower.

"We will be engaging with service providers such as the Dubai Municipality , the Roads and Transport Authority and the Dubai Electricity and Water Authority in early 2014 to ensure a successful and timely delivery of the Burj 2020 and the One JLT projects," Ahmed Bin Sulayem, Executive Chairman, DMCC , told Emirates 24|7.

"We are building the tower from the inside out. Efficiency is the key... it will be the most efficient high rise in the world," he asserted.

Though the intention is to deliver a highly efficient, purpose-built commercial office space for multinationals, DMCC, on the business front, is aiming to have 10,000 members by 2015. It, currently, has over 7,800 member companies.

Nearly 80,000 people work and live Jumeirah Lakes Towers (JLT), with bin Sulayem putting the occupancy rates in the residential towers at over 90 per cent.

JLT is a waterfront community, comprising 87 residential, office and mixed-use towers.

DMCC chief also spoke on issues such as gains from Expo 2020, opening of the first park in JLT and their CSR (corporate social responsibility) activities.

Excerpts

-What is your future plan for DMCC?

When it comes to growing and improving the DMCC Free Zone, there is no finish line. We have exceeded our goal of 7,200 registered companies by 2013 and today there are over 7,800 member companies. Now the UAE's largest and fastest growing free zone, our current commitment to His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai, is to have 10,000 DMCC members by 2015.

The Burj 2020 and surrounding Business Park is being constructed as a direct result of customer demand in particular from multi-nationals and multi-business entities. The availability of highly efficient, purpose built commercial office space suitable for multi-national companies is almost non-existent in this area, which causes blue chip, multi-national and multi-business entities to look elsewhere outside of Dubai. DMCC is committed to filling this gap by all means.

In order to accommodate this growth, we have announced plans to build the 107,000 square metre DMCC Business Park and within it the world's tallest commercial tower, the Burj 2020. The master plan of the world's tallest commercial tower, named the Burj 2020 is currently in its final stages. We expect to appoint architects in 2014 and break ground in 2015.

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The DMCC Business Park is to comprise over 12,000 square metre retail space, low-rise commercial space and a high-end hotel, sports facilities, large park areas and multi-storey car parking.

In addition, we have also commenced work on One JLT, a "glass-box" style building in the heart of the DMCC Free Zone, a benchmark for the rest of GCC who may look at attracting large multi-national and multi-business entities. One JLT will is a key part of the free zone's previously announced strategy to cater to the demand of large regional and multi-national companies seeking to house their entire operations in efficient, single-owner commercial space.

One JLT will set the standard globally for efficiency. The building, which will include 12 levels and a ground floor, will offer a net leasable area (NLA) of 23,400 square metres. It will also offer one of the highest ratios of parking spaces to NLA in Dubai. One JLT is part of DMCC’s strategy to provide companies with a commercial property offering unique to the Dubai marketplace, including benefits such as single ownership, contiguous commercial office space in the heart of Dubai, close to metro stations, world-class cargo facilities, ports and airports that connect to over 220 destinations.

Both projects aim to meet the increased demand for premium commercial space we have seen, particularly from large regional corporations and multi-nationals.

We will be engaging with service providers such as the Dubai Municipality, the Roads and Transport Authority and the Dubai Electricity and Water Authority in early 2014 to ensure a successful and timely delivery of the Burj 2020 and the One JLT projects.

We will maintain our position a the global gateway for commodities trade by continuously providing our members and industry participants with the appropriate infrastructure, products, services and regulation they require to grow, succeed and trade with confidence.

If they're successful, we're successful, Dubai is successful, and the UAE's successful. In just over a decade, we have turned DMCC and the Jumeirah Lakes Towers development into a thriving global commodities hub for trade and enterprise.

-Nearly 80,000 people work and live in the JLT. Where do you expect that numbers to be in the next 10 years?

So much has happened in the first 10 years of DMCC, it is hard to predict what records we will shatter in the next decade. Now the UAE's largest and fastest growing free zone, our current commitment to His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai is to register 10,000 members by 2015.

The fact that we represent over 7,800 members companies and growing, there are already 80,000 people working and living in the DMCC Free Zone is proof that Jumeirah Lakes Towers is the ultimate hub for businesses.

In first six months of 2013, DMCC registered 1,270 companies, a 30 per cent rise over the same period in 2012. We have grown from 28 member companies in 2003 to over 7,800 member companies today. Occupancy rates in the residential space at Jumeirah Lakes Towers are also high at over 90 per cent.

--Dubai will be host Expo 2020. How is DMCC going to assist and benefit from this?

Immediately following the announcement that Dubai had been selected to host World Expo 2020, we named the world's tallest commercial tower the Burj 2020 in honour of this historic milestone for the emirate and the UAE.

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The Expo 2020 theme "Connecting Minds, Creating the Future" will further drive Dubai's position as more than just a transfer point between East and West, and support the vision of the leadership of Dubai to continue being the new economic centre of the world.

At DMCC, we always look at supply and demand to improve products and services for our members so they can succeed and trade with confidence. Going forward, we will continue to connect the world to the UAE and look forward to participate in and have our members engage with the Expo 2020.

-When will the new park open in JLT?

The lake was drained in January 2013 and the landfill works began in February 2013. The first tree was planted during Ramadan in July 2013. We expect the park to open in January.

DMCC announced its intention to convert one of its four lakes (Lake C) into a 55,000 square metre park to cater to the demand for more green space in 2012, which has been delivered. This park will feature green areas, playgrounds, theatre areas, exercise zones with equipment and the Kobe Bryant basketball court, restaurants and picnic areas. The centre has also recently opened a pedestrian bridge connecting the North side (Dubai) and South side (Jebel Ali) of the community to make it safe and convenient to access the park by foot.

-Did the OA's/investors show that they are against converting one lake into park?

On the contrary, the decision to build a community park was taken in response to feedback from residents, Owners Associations (OAs) and developers. As testimony to that, we did lose some residents and businesses as they complained that there are no facilities, supermarkets etc for the residents, which is no longer the case today, as JLT is now a magnet for the residents, visitors and families. We as JLT community will cater to and continue to listen to our community regardless to what others who are not a part of this community have to say. The only party that had some issue with the matter were small and medium real-estate agents and speculators who are insignificant to me personally, as JLT is for the residents, end-users and visitors and not the real estate agents who need to find a better way to get their commissions.

-Is the Uthman Ibn Affan Masjid a new idea or was it always part of the master plan?

There have always been plans to build a Masjid, the 'Uthman Ibn 'Affan (Dhun-Nurayn) Masjid will compliment several existing prayer halls in Jumeirah Lakes Towers, by providing a much needed opportunity for men and women to pray within their community and has always been an essential natural next step in improving quality of life and sense of belonging.

The timing was a result of finding the most suitable plot for the Masjid. The design of the Masjid will be inspired by Ummayad/Andalusian architecture and will accommodate over one thousand worshippers, in addition an upper level prayer area that will cater for over 300 women. The Masjid will be constructed in line with best practices for green building and sustainability standards, as well as maximum space efficiency, such as minimal if not no use of unnecessary columns, in mind.

-You donated for Red Crescent and the Masjid 'Uthman Ibn 'Affan (Dhun-Nurayn) mosque. Why is charitable work important to you?

We strongly believe in supporting humanitarian organizations and the ones that are committed to breaking the cycle of poverty through education and health awareness initiatives.

DMCC’s 2013 Corporate Social Responsibility commitment focuses on promoting safe and accessible education for children through initiatives such as DMCC’s recent Memorandum of Understanding with Dubai Cares to adopt a school in Gaza. Dubai Cares is doing admirable work for children in developing countries and we thank them for inspiring us to contribute towards their efforts.

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Recently, DMCC also supported the Dubai Municipality’s 'Your Weight in Gold' campaign that rewarded UAE residents that participated in this initiative during Ramadan with DMCC’s UAE Gold Bullion coins. We also hosted the DMCC Kobe Bryant Health and Fitness Weekend another key initiative designed to encourage the UAE population to get fit, get active and stay healthy.

My experience in working for DMCC has provided me with the opportunity to develop both my professional and personal skills as well as receive recognition for achieving the results and successes.

I believe that these contributions are even more important in times of global uncertainty when some people tend to save more and spend less, the issues remain and in fact the need for financial support intensifies.

It is important to me to also recognise the efforts of others, which is why I made a personal donation to the Red Crescent of Dh1 million in support of their cause, as well as a personal donation of Dh1 million to Awqaf towards building the 'Uthman Ibn 'Affan (Dhun-Nurayn) Masjid in Jumeirah Lakes Towers.


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SINOGULF GETS SET FOR NEW

PROJECT IN ABU DHABI


While developers are still in two minds on new projects for Abu Dhabi, SinoGulf has decided to go right ahead and launch one. An upscale residential property, Capital House, will come to market in the first quarter and near Adnec’s Capital Centre. It will have 332 one- and two-bedroom units.

The property “will provide a much needed supply of one- and two-bedroom apartments which the market currently lacks, especially in an established on-island location with good connectivity and amenities,” said David Cockerton, fund manager, SinoGulf.

“In addition to the well-documented “flight to quality”, recent developments have supported the establishment of new sub-markets. A good example is Capital Centre, where the completion of a number of projects across all asset classes has seen this ‘micro-city’ come of age during 2013. The further establishment of Capital Centre and other new and emerging locations is likely to continue as the overall Abu Dhabi real estate market matures.”

In 2012, SinoGulf launched an office high-rise, International Tower, in Abu Dhabi and which now counts on McKinsey & Co., BAE Systems and AECOM Technology among its tenants. “In commercial offices, new, high quality stock performed collectively well in 2013 and has raised occupier expectations for new developments — developers will need to take [this] into account when planning and designing new schemes.

“Having seen significant absorption of new stock during 2012 and 2013, the market — both residential and commercial offices — is well-placed to see new project starts from 2014 onwards. This is particularly true of quality developments in well-connected locations.

“We will continue to focus on leasing at International Tower and the demand we witnessed leads us to believe that 2014 will be a year of strong performance for this sector, especially for developments of a certain pedigree and reputation.”

But isn’t there a general concern about an oversupply situation persisting in Abu Dhabi for a while now? “This is very sector-specific and even extends to segments within each sector,” said Cockerton. “Developers have to be clever in understanding which segments of the market are undersupplied, even when there is an impression that there is enough supply generally.”


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With 28 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, Jordan 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]

Julia Knibbs MSc

Manager – Research and Consultancy - Dubai +971 4 403 7777 [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

SALESAsteco 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.

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