NEWS BRIEF 02 - Asteco Property Management€¦ · emirate's economy a Dh14 billion boost by 2020 -...





REAL ESTATE NEWS UAE

ETIHAD RAIL AWARDS CONTRACT FOR EMPLOYEE HOUSING IN MIRFA

UAE HOTELS TAP INTO ISLAMIC TRAVEL MARKET

DUBAI OVER 14,000 BUILDINGS UNDER CONSTRUCTION IN DUBAI

BUYING OFF-PLAN PROPERTY IN DUBAI? PAY 4% REGISTRATION FEE UPFRONT

IS BUYING PROPERTY IN DUBAI CHEAPER THAN RENTING? CLICK TO KNOW MUTED SECONDARY MARKET DEMAND FOR OFF-PLAN UNITS DUBAI DEVELOPER OFFERS 'AFFORDABLE' HOUSING TO UAE RESIDENTS

MINIMALIST STYLE AT A MAXIMUM PRICE FOR AL GHURAIR DEBUT APARTMENTS IN DUBAI

HOTELS BENEFIT AS PRICES RISE FOR DUBAI CONFERENCE SEASON ARABTEC DENIES ACQUISITION REPORTS

DFM CONTINUES EARLY YEAR DECLINE OVER VOLATILITY FEARS NAKHEEL TO START LEASING ON PALM JUMEIRAH’S GOLDEN MILE

ABU DHABI

STRATA LAWS WOULD COVER SHARED AREAS OF ABU DHABI BUILDINGS ABU DHABI’S EVER-CHANGING SKYLINE: A LOOK AT THE CAPITAL’S ICONIC

BUILDINGS

OTHER WORLD TRADE CENTER TOWERS IN NEW YORK SLOW TO FILL





DUBAI DEVELOPER OFFERS

'AFFORDABLE' HOUSING TO UAE

RESIDENTS

SATURDAY 10 JANUARY 2015

Danube Properties, the real estate arm of Dubai-based Danube Group, says it is committed to offer

"affordable" housing to UAE residents, primarily aiming to convert renters into homeowners.

"We have ventured into the affordable housing segment as this is the space where we see a huge

vacuum in Dubai. We are expecting a sell out for Glitz 2 tower in Dubai Studio City since we have

already received nearly 8,700 inquiries with the majority coming from UAE residents," Danube Group

chairman Rizwan Sajan told Emirates 24l7.

"We have also worked out a payment plan that in no way burdens the end user who will pay only one

per cent of the unit price on a monthly basis."

The developer has already sold out Glitz 1, with sales for Glitz 2 beginning today (Friday).

A unit buyer will have to pay 10 per cent down payment, 15 per cent in the next 60 days, 25

instalments of one per cent of the unit value per month till handover and 50 instalments of one per cent

of the unit value per month after handover.

"All the money paid by the buyer, which includes the monthly instalments, will be deposited in an

escrow account. But we will have a lien on the title deed so to ensure that the buyer honours his

financial commitment post-handover."

Prices for studio to three-bedroom apartments range between Dh475,000 and Dh1.6 million, or Dh890

per square feet (psf). The project is expected to be completed in the third quarter of 2017

As reported by Emirates 24l7, off-plan unit buyer have to pay 4 per cent registration fee within 30 days

from booking to the Dubai Land Department.

"We don't see the new regulation to have any impact on sales... it is good for the buyer as their units

get registered with the department immediately."

Asked why the company chose Dubai Studio City to launch a project, Sajan said they have decided to

build projects only in master communities where infrastructure is fully ready so the project take off on

time and is delivered on time.

The company's first project Dh500-million "Dreamz by Danube" in Al Furjan master community is also

fully sold out with United Engineering Construction recently being awarded the construction contract.

Sajan ruled out a price correction in the "affordable" market segment, stating, "We are selling for Dh890

psf compared to units in MotorCity, Dubailand, which are selling for Dh1,100 to Dh1,200 per square

feet. We are far below the current price and so we don't see prices coming down."

Source: Gulf News

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MUTED SECONDARY MARKET DEMAND

FOR OFF-PLAN UNITS


While last two months of 2014 saw an unexpected pickup in secondary market deals, it was more or less

flat in the off-plan space.

“The off-plan market has been very slow and there were even fewer transactions in the secondary

market related to off-plan properties,” said Chandrakant Whabi of Acrohouse Properties. “Reasons for

the drop in transaction volumes in off plan market had to do with the drop in premiums, with a majority

of the launches in 2014 transacting at 0 — or close to — per cent premium over the launch value.

“A second reason had to be the high transaction fees, which adds up to 10 per cent of the property

value (4 per cent for “Qqood” fees, 4 per cent for transfer fees and 2 per cent for professional fees).

And, to some extent, there was the steep mandatory payments required by some of the large

developers before allowing transfers of such properties.”

Source: Gulf News

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IS BUYING PROPERTY IN DUBAI

CHEAPER THAN RENTING? CLICK TO

KNOW

WEDNESDAY 07 JANUARY 2015

Buying a property or renting one is a personal decision, but a new research by a UAE-based company

suggests that time may be ripe for renters in Dubai to become homeowners.

"Our analysis reveals that many tenants may now be able to purchase a property similar to the one they

are renting at a lower monthly cost. This appears to be particularly the case for lower cost starter type

home," says Declan King, Director & Group Head - Real Estate, ValuStrat.

He believes stabilisation in residential sales prices during the second half of 2014, along with continued

increases in rental rates during the same period has brought about a scenario where it is now cheaper to

pay a mortgage then equivalent rent.

Their analysis of properties worth Dh1.57 million or less in freehold locations revealed monthly costs as

follows:

Two assumptions for the analysis are annual lease on un-furnished basis and 75 per cent loan-to-values,

25 year loan term and 4.25 per cent interest rate.

The initial costs, however, remain higher with homebuyers having to shell out 25 per cent of the

property value as down payment, 4 per cent of the property value in Dubai Land Department (DLD)

registration fees, 2 per cent of the property value as agent commission besides bank charges and

surveyor fees.

An expat buying a Dh1.5 million property will need Dh375,000 for down payment, Dh60,000 in

registration fees and Dh30,000 in agent fees, according to King.

"It is a good time for the end users to actually tap into the market if they are looking for ready

properties. With the rental rates having gone up, it makes sense to buy than rent now," Parvees

A.Gafur, CEO, PropSquare, told 'Emirates 24|7'.

"The price correction means better availability of assets. Besides, the mortgage market has been

encouraging enough, which should be a great support for homebuyers," he adds.





However, financial planning consultants, state that no bank in the UAE offers a long-term fixed interest

rate, with limited banks only offering fixed rates for four year period and using a high "floating" rate

post the fixed period is over.

This website had reported that rents in the emirate have risen by 6 to 25 per cent in the first rent index

update of 2015 compared to the final rent index of 2014.

Source: Gulf News

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BUYING OFF-PLAN PROPERTY IN

DUBAI? PAY 4% REGISTRATION FEE

UPFRONT

THURSDAY 08 JANUARY 2015

Developers in Dubai are asking off-plan property buyers to pay the registration fee of 4 per cent of the

contract value at the time of booking, Emirates 24|7 can reveal.

"We are asking investors to pay the title registration fee of 4 per cent of contract value, Oqood fee of

Dh1,000 along with a knowledge fee of Dh20 at the time of property purchase as per the new regulation

from Dubai Land Department ( DLD )," a developer told this website.

A buyer of off-plan property had to pay 4 per cent of the sales value, but could defer the fee payment at

the time of resell or at handover.

The new DLD regulation, the developer says, gives investors 30 days from the booking date to pay the

above fees.

Real estate agents confirm that developers are asking them to inform investors of the change with the

payment being made through a manager's cheque.

"We have been told to inform investors to pay the title registration fee upfront," a senior executive with

a real estate consultancy told this website.

Oqood registration is implemented in line with Law No. 13 regulating the Interim Real Estate Register of

Dubai. It is mandatory for all developers to undertake pre-registration of all off-plan and under

construction purchases, as it is aimed to safeguard the interest of homeowners.

Source: Gulf News

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TIMESHARE TO CONTRIBUTE AED14BN

TO DUBAI

TUESDAY 06 JANUARY 2015

Dubai is set to be the fastest growing timeshare market in the world and this sector will give the

emirate's economy a Dh14 billion boost by 2020 - thanks to the significant increase in the number of

tourists, real estate prices and hotel room rates in the emirate over the next decade, according to a new

study.

"Dubai is one of the top cities in the world that receive frequent international visitors - new and

returning ones - both for business and leisure, exceeding those registered by many tourist destinations

globally. And this makes Dubai an ideal place to invest in the timeshare sector," said a report by Arabian

Flacon Holidays (AFH), a Dubai-based timeshare sales and marketing company.

"With property prices in Dubai clocking the fastest growth rate in the world in 2013, many aspiring

property owners in the emirate are being priced out of the second home or vacation home market. For

such people who visit Dubai on a regular basis and stay in one of the hundreds of hotels around the city,

an investment in timeshare makes perfect financial sense," said Mohannad Sharafuddin, Chairman and

CEO of Arabian Falcon Holidays.

In the UAE, the timeshare industry grew by 15-20 per cent in 2013 and is estimated to have grown by

30 per cent in 2014, according to AFH report.

Titled 'Demand Outstripping Supply', the report maintains that the growth is spurred by global economic

recovery in general and robust growth in the UAE in particular, buoyed by strong tourism and hospitality

sectors and a property market that is back to the boom cycle.

The timeshare industry, also called vacation ownership, received a massive boost in 2014 from the

sustained recovery in the global economy and a resultant rise in both hotel room rates and property

prices in major tourism destinations.

Demand-supply mismatch

The report maintains that the demand for timeshares in the UAE has been outstripping supply,

prompting vacation ownership players to look for other destinations to meet demand.

"While the demand has been growing year-on-year at around 80-90 per cent, the number of timeshare

properties in the UAE has not been able to catch up with this growth," the report said.

"One of the reasons supply has not been able to catch up is that developers and other multi-national

hospitality companies are still waiting for the finalisation of the draft regulation for the timeshare

sector."

Source: Emirates 24/7

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DUBAI PROPERTY MARKET WILL

MATURE FURTHER IN 2015: EMAAR

CHIEF


Dubai's property sector will continue to emerge as a more mature market in 2015, with the real demand

now coming from end-users and long-term investors, Chairman of Emaar Properties has said.

"The concerted efforts of the Dubai government have helped manage the supply pipeline, and at the

current trends of population and tourism growth, demand is set to remain healthy," Mohamed Alabbar

wrote in a column published by Arabian Business.

He added there was no reason for panic though there were reports of the market softening as rents and

prices stabilise.

"In 2013 we saw the property market heating up again. Demand spiked and the supply stakes

broadened. Having learnt our lessons from the past, we did not let the market go berserk."

In October 2014, Alabbar had said that the market had cooled down and was healthy though "property

price spikes did scare him."

"In 2013, things went crazy because supply was limited. As a long-term developer, this spike scares me.

I am glad that people are saying that 'the market is cooling down', and that is healthy," he had said.

Commending the efforts of the government, Alabbar said the company had introduced a number of

measures to curb speculation.

"We cushioned the market and that is what makes the current softening of the market important from a

long-term perspective. What we now have is real demand from end-users and long-term investors. With

the city drawing renewed growth energy from the Dubai Plan 2021, we are set to mark a new year of

stability."

Emaar is now looking for more partnerships and investments to create premium "cities of the future,"

firmer growth for its retail and leisure business as it aims to achieve 100 million visitor milestone for

Dubai Mall.

However, Knight Frank, a UK-based consultancy, predicted in its Prime Global Cities Forecast that prices

may decline up to 10 per cent this year.


Back to Index





IS BUYING PROPERTY IN DUBAI

CHEAPER THAN RENTING? CLICK TO

KNOW


Buying a property or renting one is a personal decision, but a new research by a UAE-based company

suggests that time may be ripe for renters in Dubai to become homeowners.

"Our analysis reveals that many tenants may now be able to purchase a property similar to the one they

are renting at a lower monthly cost. This appears to be particularly the case for lower cost starter type

home," says Declan King, Director & Group Head - Real Estate, ValuStrat.

He believes stabilisation in residential sales prices during the second half of 2014, along with continued

increases in rental rates during the same period has brought about a scenario where it is now cheaper to

pay a mortgage then equivalent rent.

Their analysis of properties worth Dh1.57 million or less in freehold locations revealed monthly costs as

follows:

Two assumptions for the analysis are annual lease on un-furnished basis and 75 per cent loan-to-values,

25 year loan term and 4.25 per cent interest rate.

The initial costs, however, remain higher with homebuyers having to shell out 25 per cent of the

property value as down payment, 4 per cent of the property value in Dubai Land Department (DLD)

registration fees, 2 per cent of the property value as agent commission besides bank charges and

surveyor fees.

An expat buying a Dh1.5 million property will need Dh375,000 for down payment, Dh60,000 in

registration fees and Dh30,000 in agent fees, according to King.

"It is a good time for the end users to actually tap into the market if they are looking for ready

properties. With the rental rates having gone up, it makes sense to buy than rent now," Parvees

A.Gafur, CEO, PropSquare, told 'Emirates 24|7'.





"The price correction means better availability of assets. Besides, the mortgage market has been

encouraging enough, which should be a great support for homebuyers," he adds.

However, financial planning consultants, state that no bank in the UAE offers a long-term fixed interest

rate, with limited banks only offering fixed rates for four year period and using a high "floating" rate

post the fixed period is over.

This website had reported that rents in the emirate have risen by 6 to 25 per cent in the first rent index

update of 2015 compared to the final rent index of 2014.


Back to Index





BUYING OFF-PLAN PROPERTY IN

DUBAI? PAY 4% REGISTRATION FEE

UPFRONT


Developers in Dubai are asking off-plan property buyers to pay the registration fee of 4 per cent of the

contract value at the time of booking, Emirates 24|7 can reveal.

"We are asking investors to pay the title registration fee of 4 per cent of contract value, Oqood fee of

Dh1,000 along with a knowledge fee of Dh20 at the time of property purchase as per the new regulation

from Dubai Land Department (DLD)," a developer told this website.

A buyer of off-plan property had to pay 4 per cent of the sales value, but could defer the fee payment at

the time of resell or at handover.

The new DLD regulation, the developer says, gives investors 30 days from the booking date to pay the

above fees.

Real estate agents confirm that developers are asking them to inform investors of the change with the

payment being made through a manager's cheque.

"We have been told to inform investors to pay the title registration fee upfront," a senior executive with

a real estate consultancy told this website.

Oqood registration is implemented in line with Law No. 13 regulating the Interim Real Estate Register of

Dubai. It is mandatory for all developers to undertake pre-registration of all off-plan and under

construction purchases, as it is aimed to safeguard the interest of homeowners.


Back to Index





OVER 14,000 BUILDINGS UNDER

CONSTRUCTION IN DUBAI

SUNDAY 04 JANUARY 2015

More than 14,000 buildings are currently under construction in the emirate of Dubai. (Supplied)

More than 14,000 buildings are currently under construction in the emirate of Dubai, according to a top

official of Dubai Municipality.

Khalid Mohammed Al Mulla, Director General of Buildings Department at Dubai Municipality, said that

the department is currently supervising all these buildings from the moment it get fenced, till all the

construction work is completed.

"These buildings include residential and commercial villas, as well as multi-floor buildings and general,

industrial, and residential buildings which includes schools, hospitals among others," he said.

He added that the department ensures the constructors adhere to the municipality's rules and

regulations.

Abdullah Al Shezawi, head of Engineering Supervision Section at the Buildings Department of Dubai

Municipality, said they were able to help resume 72 projects which were held over due to disputes

between different contracting partners.

"We were also able to amend the situation of 128 projects which were being held over after ensuring

that it adhere to safety and security standards," he added.


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REVEALED: COSTLIEST APARTMENT

DEALS OF DUBAI IN 2014

MONDAY 05 JANUARY 2015

Even though the volume of property transactions in Dubai's property market may have come down in

2014, big-ticket deals took place in the apartment segment.

Downtown Dubai emerged the winner with five biggest deals of the top 10, data shared by Reidin.com

with 'Emirates24|7' reveals.

An apartment in Burj Khalifa , the tallest tower in the world and the centerpiece of Downtown Dubai,

was sold for Dh60 million, topping the list of the biggest transactions of the year.

On the second place was an apartment transaction in The Address Downtown Hotel (Lake Hotel),

Downtown Dubai, for Dh35 million. Bollywood superstar Salman Khan owns a unit in the tower.

The third position went to apartment deal in Marina Residences 1, Palm Jumeirah. The unit was sold for

Dh29 million with another unit sale for Dh28 million in Burj Khalifa taking the fourth place.

A unit sold in Le Reve, Dubai Marina, for Dh25 million was placed fifth on the list with a unit in The

Address Downtown Hotel (Lake Hotel), Downtown Dubai, selling for Dh23.08 million taking the sixth

place.

The last four places went to Attareen Residences, Dubai Marina, (Dh17.80 million); Kempinski Palm

Jumeirah Residences, Palm Jumeirah, (Dh17.64 million); Silverene Towers-A, Dubai Marina, (Dh17

million) and Emirates Crown Tower, Dubai Marina, (Dh16 million).


Back to Index





FIRST RENTAL INDEX UPDATE OF 2015:

DUBAI RENTS UP 6-25%


Rents across some of Dubai’s master communities have risen by 6 to 25 per cent in the first rent index

update of 2015 compared to the final rent index of 2014, a comparison done by Emirates 24|7 reveals.

Lease rates for apartments in International City, Dubai Silicon Oasis and Discovery Gardens have

jumped by 9 to 18 per cent as per the first 2015 rent index compared to the last update of 2014.

The highest increase has been recorded in Remraam, where two-bed units have seen a rise of 13.13 per

cent to 25 per cent.

The rent index is updated by the Real Estate Regulatory Agency (Rera), the regulatory arm of Dubai

Land Department, every four months.

Rents for studio apartments in International City, the cheapest among major communities, are up by

14.28 per cent on the high band. Rates start at Dh30,000 to Dh40,000 per annum as against Dh30,000

to Dh35,000 pa in 2014’s final rent index.

Leases for studio units in Dubai Silicon Oasis and Discovery Gardens have both registered an increase of

12.5 per cent and are currently between Dh35,000 and Dh45,000 pa and Dh45,000 to Dh55,000 pa,

respectively.

Downtown Dubai remains the most expensive community to rent a studio apartment though rents have

risen between 6.66 and 7.69 per cent compared to the 2014’s final rent index. Leases range between

Dh70,000 and Dh80,000 pa.

Rents for one-bed apartments remain the lowest in International City and Dubai Investment Park. One

beds in the two communities stand at Dh40,000 to Dh50,000 pa.

The highest increase in two-bed apartment has been recorded in Remraam, with the upper band of the

index increasing of the index increasing by 25 per cent. Leases vary between Dh75,000 and Dh85,000

pa compared to Dh60,000 to Dh75,000 pa.

Lease rates of one and two-bedroom apartments in Jumeirah Lake Towers (JLT) and Palm Jumeirah

have remained stable. Rents for one- and two-bed units remain at Dh130,000 to Dh160,000 pa and

Dh180,000 to Dh230,000 pa, respectively.

Similarly, lease rates for one- and two-bed units in JLT stand at Dh80,000 to Dh100,000 pa and

Dh120,000 to Dh150,000 pa, respectively.

Dubai Marina saw rents for studio and two-bed apartments increase as well. Rates for studio units rose

by 9 to 11 per cent with leases varying between Dh70,000 and Dh80,000 pa, while rates for two beds

vary between Dh140,000 and Dh190,000 pa, showing an increase of 11.76 per cent for the upper band.

In fact, the Dubai government has issued Decree No. 43 of 2013 concerning the percentages of

maximum property rent increase that are to be allowed upon renewal of tenancy contracts. The rent

increase slabs are as follows:

# No rent increase if the rent of the property unit is less than 10 per cent of the average rent of a

similar property in the same residential area.





# If the rent value is between 11 and 20 per cent less than the average rent of a similar property, the

maximum rent increase shall be equal to 5 per cent of the rent value.

# If the rental value of a unit is between 21 and 30 per cent less than the average rent of a similar unit,

the maximum rent increase shall be equal to 10 per cent of the rental value.

# If the rental value of a property is between 31 and 40 per cent less than the average rental of a

similar property, the maximum rent increase shall be equal to 15 per cent of the rental value.

# If the rental value of a property unit is less than 40 per cent or more of the average rent of a similar

unit, the maximum rent increase applicable is of 20 per cent.

The average similar rental value of the property will be determined by the Real Estate Regulatory

Agency's rent index, the decree states.

It is also expected that Rera will unveil a more detailed rent index this year which will take into

consideration various factors such as views from the apartment and facilities in a tower, age of the

building, etc. when revealing the average rent for the apartment.


Back to Index





NAKHEEL TO START LEASING ON PALM

JUMEIRAH’S GOLDEN MILE


Nakheel will start leasing shops on Palm Jumeirah’s Golden Mile today with the first of them expected to

open by April.

The developer took over the ownership of Palm Jumeirah’s Golden Mile retail and office units in

November.

Spinney’s, the supermarket chain, will be among its first tenants.

The rest of the brands are expected to be announced within weeks, according to a Nakheel

spokeswoman on Sunday.

As of September, 27 retailers were waiting to move into the development. All of them previously signed

contracts with Souq Residences, a joint venture between Kuwait’s IFA Hotels and Resorts and the Dubai

World unit, Istithmar. These tenants will get priority for allocation of space, the Nakheel spokeswoman

said.

Some of the original tenants included Waitrose, Beyond the Beach, Starbucks, the restaurant

Wagamama, Mothercare, Pinkberry, Boots, Party Zone, Loft Fifth Avenue Salons and NStyle.

Steven Holbrook, the chief executive at the retailer Al Boom Marine, said yesterday he had not yet been

told about the new leasing programme.

He signed a contract with the original owner Souq Residences about four years ago.

Jacob Hrayki, the owner of Loft Fifth Avenue Salons, said he was moving into the Golden Mile in April.

The stretch, which will serve thousands of residential units and luxury hotels, will eventually have 70

retail outlets. About 400,000 square feet of office and retail space is available. Last year, the master

developer took over all unsold units in the Golden Mile, including residential, office and retail space from

Souq Residences, against which it started legal proceedings in 2010. The dispute was eventually settled

out of court.

Golden Mile and Souq Residence were both joint ventures between Kuwait’s IFA Hotels and Resorts and

the Dubai World subsidiary Istithmar.

The Golden Mile development was launched in 2005. But it became entangled in a contractual row when

Palm Jumeirah’s master developer Nakheel brought a US$27.2 million lawsuit against Souq Residences

before the Dubai World Tribunal.

Source: The National

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ABU DHABI’S EVER-CHANGING

SKYLINE: A LOOK AT THE CAPITAL’S

ICONIC BUILDINGS


Buildings are a city’s boldest statement and Abu Dhabi is certainly finding its voice with eye-catching,

breathtaking constructions. Towering ambition hints at the grand designs yet to come.

Barely registering on the current panorama of the city skyline is the 185-metre tall Abu Dhabi

Investment Authority tower on the Corniche. Yet when it was completed in 2006, this was the tallest

building in town.

Such is the pace of change that today’s tallest building is the Burj Mohammed bin Rashid. Completed in

November, it stands at 382 metres – more than twice the height of the Adia tower. Soon it will be joined

by the 342-metre Adnoc Headquarters, set for completion in a matter of months.

Since the launch of The National in April 2008, Abu Dhabi has been transformed, not just on the ground,

but above it. Almost all the major landmarks on the horizon, from the Nation Towers to the leaning

Capital Gate, would not have been visible seven years ago. Developments such as Al Reem and Al

Maryah islands and the explosion of high-rise construction at the western end of the Corniche have

transformed the appearance of Abu Dhabi.

Burj Mohammed bin Rashid

Burj Mohammed bin Rashid, part of Aldar’s World Trade Centre Abu Dhabi project, was originally named

the Domain, but was renamed on its inauguration in honour of Sheikh Mohammed bin Rashid, the Prime

Minister and Ruler of Dubai.

Also known as the World Trade Centre Residences, the building rises above the new World Trade Centre

mall. Just a week after the building’s inauguration, Aldar announced it had leased half of its 474 units.

The Central Market, the site of the 60,000-square-metre World Trade Centre Mall and the new 250-unit

souq, was built on the site of Abu Dhabi’s old souq, which burnt down in 2003.

Al Bahr Towers

The twin 145-metre tall headquarters of Abu Dhabi Investment Council are not just among the most

distinctive buildings in Abu Dhabi but in the world. Their external surface is covered with 2,000

“umbrellas”, which open and shut depending on the direction of the Sun and are said to reduce the

amount of heat resulting from sunlight by half. This unique energy conservation system led to Al Bahr

Towers becoming one of the first in the Arabian Gulf to receive the Leadership in Energy and

Environmental Design Silver rating. It was also included as one of the 20 buildings that “challenge the

typology of tall buildings in the 21st century” by Urban Habitat and the US-based Council on Tall

Buildings.

Landmark Tower

Completed in 2013, the Landmark towers over the Corniche at 324 metres. Almost half of its 72 storeys

are commercial space, while the rest is composed of three and four-bedroom apartments.





The design, by Pelli Clarke Pelli architects, incorporates dodecagons – a nod to traditional Islamic

geometry. It also has an internal atrium, based on traditional Arabian Gulf courtyards, with an external

glass canopy intended to provide shade.

Sky Tower

This is part of the Shams Abu Dhabi community, in the heart of the Reem island investment zone. The

initial Reem Island master plan, produced by the island’s first master developers, Sorouh Real Estate,

Tamouh Investments and Reem Investments, proposed that the 650-hectare island would house

200,000 people and provide four hospitals, seven schools, 10 mosques and two police stations.

The Sun and Sky towers, together add 1,147 apartments and 74,332 square metres of office space to

the market.

Sky Tower, the island’s tallest, stands at 310 metres. Although it has two additional floors, it is 14

metres shorter than the Landmark. The building, finished in 2010, also has 474 residential units and

75,300 square metres of commercial office space.

Etihad Towers 1, 2 and 3

Etihad Towers dominate the list of tallest buildings in Abu Dhabi, with Tower 2 the fourth tallest, Tower 1 the fifth and Tower 3 the seventh. The Dh2.5 billion project, which began construction in 2006, was

completed in 2011.

The Towers came third in the 2012 Emporis Skyscraper Awards, which recognised skyscrapers

completed the year before, for their “soft curving contours” and “harmonious” design.

Tower 2 rises to 305 metres, Tower 1 reaches almost 278 metres and Tower 3 stands at more than 260

metres. Overlooking Emirates Palace, in the Western Al Ras Al Akhdar district, the skyscrapers have won

many other awards.

The project is divided between three residential towers, with 885 apartments and penthouses, a five-

star Jumeirah hotel and a commercial tower, with 45,000 square metres of leasable space.

Nation Towers Residential

Standing at 268 metres, this behemoth is one of two towers – sitting alongside the 233.2-metre St

Regis Abu Dhabi hotel. The skyscrapers, designed by architects WZMH, incorporate shapes of waves and

sand, reflecting their seaside setting.

The buildings, completed in 2012 and 2013, are connected by a sky bridge at 202 metres. Nation

Towers Residential offers two-storey loft apartments – and serviced apartments – while the St Regis also

dedicates space to offices and fine dining.

Residents and guests can access the Corniche beach directly – through a tunnel.

The Gate Towers

Like Sky Tower, this triumvirate of three 230-metre skyscrapers form part of the Al Shams

development, capped by a slightly off-centre horizontal bridge of penthouses. The eye-catching trio,

completed in 2013, form an essential part of the Reem island skyline off the eastern coast of the city,

while also providing more than 3,500 apartments.

Reem Island’s influx of apartments has made it one of the most sought-after locations for property in

Abu Dhabi. In the third quarter of last year, Reem island rents rose 6 per cent.


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DFM CONTINUES EARLY YEAR DECLINE

OVER VOLATILITY FEARS


Dubai shares declined for a second day – extending losses from last year – as brokers fretted that

volatility was keeping investors away from the market.

“I think we’re going to continue [to see] another wave of sell-offs,” said Nabil Al Rantisi, the managing

director of brokerage at Menacorp in Abu Dhabi. “It’s not over yet. Some people lost interest in the

market, and as long as it stays volatile like this, you won’t see money flowing in.”

Arabtec, Dubai’s biggest contracting company, lost 3.5 per cent to Dh2.72 for a share. Emaar

Properties, the biggest developer in the region, declined 3.2 per cent to Dh6.90 for a share. Dubai

Investment tumbled 6.5 per cent to Dh2.14 per share.

The Dubai Financial Market General Index closed 3.3 per cent down at 3,565.56 points.

Traded value rose to Dh508 million from Dh311m on Sunday. It, however, was still low compared to the

50-day average of Dh1.06 billion.

Property stocks dragged Abu Dhabi’s equity index lower. Aldar Properties fell 3.6 per cent to Dh2.39 a

share. Eshraq Properties lost 1.2 per cent to 77 fils, while RAK Properties slipped 1.3 per cent to 71 fils.

The Abu Dhabi Securities Exchange General Index closed 0.4 per cent lower at 4,429,79 points.

Oil declined, extending losses from last year. Brent crude for February settlement lost 1.5 per cent to

US$56.42 a barrel in London at 2.30pm UAE time.


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ARABTEC DENIES ACQUISITION

REPORTS


Arabtec has denied it is undertaking acquisitions after reports that the company was on the lookout for

takeover targets.

The UAE’s biggest publicly traded construction company said in a statement issued to the Dubai

Financial Market that it is “constantly evaluating available acquisition opportunities with the highest

return for Arabtec, which will serve the company’s best interests and that of its shareholders”.

It added: “As for the aforesaid news, we would like to deny the same and to confirm that, at the present

time, Arabtec is not undertaking any acquisitions.”

On Sunday, Bloomberg News reported Arabtec was seeking advice from the consultant

PricewaterhouseCoopers to identify acquisition targets. PwC did not comment on the report.

Shares in Arabtec fell 3.75 per cent to Dh2.82 following the report on Sunday, and closed down 4.78 per

cent yesterday amid widespread falls on the DFM.

The firm had a volatile year in 2014, with the chief executive Hasan Ismaik departing in June followed

by several high-level staff.

Plans to diversify into the oil and gas sector were shelved and the company’s transparency was brought

into question amid rumours about the sale of Mr. Ismaik’s stake before Aabar became the largest

shareholder again in November.

“We reaffirm our commitment to the principles of disclosure and transparency as required by applicable

laws and regulations, and we will be informing you about any developments requiring disclosure as soon

as they arise,” Arabtec said yesterday.


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HOTELS BENEFIT AS PRICES RISE FOR

DUBAI CONFERENCE SEASON


Budget hotels in Dubai are quoting as much as US$460 a night as conference season moves into top

gear.

Big gatherings such as Intersec on January 18 to 20 and Arab Health, which opens a week later, are

driving up demand for rooms near Dubai International Convention and Exhibition Centre.

Nearby properties such as H Hotel and Crowne Plaza have increased their rates to start from Dh2,000

per night, with the Conrad fetching about Dh3,000, towards the end of this month. The two-star Ibis

World Trade Centre has double bedded rooms from about Dh1,690, including taxes – but breakfast is

not included.

Business hotels along Dubai’s main commercial corridor typically increase rates during exhibition season

when they can command prices as high or higher than the city’s beachfront resorts.

The average nightly room rate in central Dubai was $203 during the first 10 months of last year

according to EY data. That compares with $385 per night for rooms on the beach.

With space limited on Sheikh Zayed Road, especially near Dubai World Trade Centre, and a shortage of

taxis during peak hours, the few properties available within walking distance or easy access via the

Dubai Metro are in high demand. Those near malls such as the Kempinski and DoubleTree by Hilton

Hotel and Residences in Al Barsha are also quoting more than Dh2,000 a room for a night.

During the four-day Arab Health exhibition starting on January 26, some properties such as the Radisson

Royal Hotel on Sheikh Zayed Road, Citymax in both Bur Dubai and Al Barsha and Deira’s Copthorne

hotels are already sold out. The number of attendees are expected to be in excess of 100,000 this year,

according to the organisers. Last year attendance was 124,882.

The exhibition organiser is sold out of rooms at most of the hotels that had been pre-booked for

registered attendees. Arab Health is working with 60 hotels in Dubai to offer cheaper room rates.

“There were an estimated 3,000 room nights booked through our show website by the first week this

month, with regular visitors locking in their hotel bookings as early as July the previous year in

anticipation of the rush,” said Daniel McDonald, the Arab Health travel and hospitality manager.

“Our hospitality team is expecting the number of bookings to go up significantly in the next few days

before any remaining rooms are released back to the hotels, which will be reflected in the higher room

rates.”


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UAE HOTELS TAP INTO ISLAMIC

TRAVEL MARKET


A few minutes before the clock struck 12 many hotel guests in Dubai gathered for a New Year toast, but

a growing number of properties in the city welcomed the arrival of 2015 with a mocktail and halal food.

Among them was the five-star Taj Palace Hotel in the heart of old trading centre Deira. At the Taj,

guests watched the fireworks display at the Burj Khalifa from the 11th-floor rooftop, sipping mocktails.

Opened in 2001, the property has shunned alcohol, including in food, and does not have a nightclub.

“Most people then said it was strange and it would not work,” says Ahmed Badawy, the hotel’s general

manager. “But going by the occupancy rates, and we are full on New Year’s Eve, the concept has been

successful.”

The property, owned by Juma Al Majid Group, was among the first of the luxury hotels in Dubai to offer

features that have gained in popularity as part of the Islamic travel sector.

Hotels are just one segment of the burgeoning Islamic travel market that also involves tour companies,

airlines and airport caterers.

The extent to which hotels go to cater for the Islamic market varies. Some offer no alcohol and have no

nightclub, others serve only halal food, while some are Sharia-compliant. But whatever is on offer,

acceptance among non-Muslim visitors, investor interest and finding revenue generators to make up for

alcohol revenues are among the key issues such hotels face, say analysts and hoteliers.

The interest among investors, especially the availability of Sharia-compliant funds and funding from

Islamic banks, is a major factor that can expand the sector, says John Podaras, a Dubai-based partner

at hospitality consultancy Hotel Development Resources.

“There is growing awareness throughout demand markets of Islamic value tourism, and there will be a

growth in such hotels,” he says. “The real growth is probably in the mid-market and budget sector,

especially in terms of business travel.”

As Sharia funding has become more popular over the past decade, more brands were formed that

adopted aspects of Islamic tourism. These include the Shaza Hotels, Tamani Marina Hotel, Coral Dubai

Deira Hotel, EWA Dubai Deira Hotel and Coral Al Khoory Hotel Apartments from Dubai-based operators

HMH, Al Jawhara Metro Hotel, Gardens Hotel and Al Jawhara Hotel Apartments from Lootah Hotel

Management, and Rotana’s Rayhaan properties.

Other properties include the Banyan Tree Al Wadi in Ras Al Khaimah which has certified halal for all the

meat it serves.

There are at least seven hotels in Dubai with a five-star rating that are dry, including Millennium Plaza

on Sheikh Zayed Road, Samaya Hotel Deira and Auris Plaza Hotel Al Barsha.

These hotels do not market themselves as dry or halal or Sharia-compliant. The reason is they do not

want to lose out to competition, and also want to attract guests for whom such facilities do not matter,

according to Mat Green, the head of research and consultancy for UAE at CBRE Middle East.





Damac hotels launched its Sharia-compliant Constella project in Jumeirah Village in May. It will have

separate swimming pools and gymnasiums for men and women, a restaurant with sections for men and

families and floors for women served by female staff. An Islamic bank will manage funds for the project.

“With increasing tourism from the more conservative countries such as Saudi Arabia and Oman, there is

a growth in demand from the leisure sector from families that prefer to stay in an environment that will

not be at odds with their beliefs and way of life,” Mr. Podaras says.

Since such customers seek a family-friendly property, the demand is often met by hotel apartments,

such as JA Oasis Beach Tower on Jumeirah Beach, where amenities include separate spa, gym and

swimming pools and facilities for praying.

The UAE ranks first in the Halal Tourism Indicator, with Malaysia and Singapore second and third in the

same measure. It takes into account how family-friendly a country’s tourism ecosystem is.

Globally, Muslim travellers spent US$140 billion in 2013 in overseas travel, excluding during Haj and

Umrah seasons, an increase of 7.7 per cent from the previous year, according to the State of the Global

Islamic Economy Report (SGIE) that was released in November. That makes the Muslim travel market

share 11.6 per cent of the total global travel expenditure. The figure is expected to reach $238bn by

2019, SGIE says.

The travel sector is waking up to the opportunities this presents. Besides catering to Muslims, Islamic

features are also helpful in attracting families on holiday. In Dubai, the family-friendly tag caught on

about three years ago, spurred by Dubai Tourism and Commerce Marketing (DTCM), says Wajeed

Bagwan, the general manager of Suba Hotel. Opened in September, the four-star hotel does not serve

alcohol or use it in food, does not have nightclubs and serves halal food.

The hotel works with suppliers that deal only with food and food products prepared and stored in

accordance with Islam. It also does not take loans, profit is shared equally among the shareholders and

a portion is put back into the property or given to charities so it does not accumulate interest.

Food and beverage usually forms a significant portion of hotel revenues. “To a certain extent, of course,

we lose out a good part of the revenues from alcohol and nightclubs, but we are not looking for that

part,” Mr. Badawy says.

Such hotels are looking for other revenue streams.

“We have a lot of family and corporate gatherings that do not like alcohol, and we tap these brackets,”

Mr. Bagwan said.

Hotels such as Suba do not market themselves as halal operators and say non-Muslims form a large

slice of their clientele.

About 85 per cent of Suba’s guests are non-Muslims, while at Taj Palace, it is 40 per cent. At the Taj, for

instance, a quarter of the guests are from the Arabian Gulf, 20 per cent from India, and 15 per cent

from China.

The Abu Dhabi-based hotel operator Rotana manages properties where all its food products and

suppliers are halal certified across all its hotels in the UAE and the region.

In 2010, it launched an alcohol-free four and five-star brand called Rayhaan Hotels and Resorts for

“fostering the image of a new Arabia”, according to Guy Hutchinson, the company’s chief operating

officer.

Several more under this brand are in the pipeline, he says.

Abu Dhabi Tourism and Culture Authority (TCA Abu Dhabi) is also working to promote itself as a halal

tourism destination.

In October it will host the World Islamic Travel Summit to showcase halal travel.





The concept of dry hotels has become more widespread over the past five years, according to the

hoteliers.

“And there is more coming because of the success of the idea,” Taj Palace’s Mr. Badawy says.


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WORLD TRADE CENTER TOWERS IN

NEW YORK SLOW TO FILL


When lower Manhattan’s new World Trade Center was conceived a decade ago, nobody had in mind a

Silicon Valley in the sky.

Financial companies, which dominated the original twin towers, are scarce among tenants who have

committed to space at the complex’s glass-and-steel skyscrapers. Instead, the majority of deals done

since magazine publisher Conde Nast agreed to anchor 1 World Trade Center in 2011 have come from

technology, media and advertising.

“People were expecting financial companies to be a substantial portion of the leased space” in the new

towers, said Christopher Jones, vice president of research at New York’s Regional Plan Association. “I

don’t think many people would have thought that it would be virtually nothing.”

The November opening of 1 World Trade Center, the 1,776-foot skyscraper built at the site of the 9/11

terrorist attacks, marked a milestone in a lower Manhattan renaissance that’s been fuelled by a

changing mix of inhabitants beyond the area’s finance-industry roots. That shift is presenting a

challenge: The creative companies dominating New York’s office market tend to be comparatively small,

leaving landlords to fill their monumental buildings floor-by-floor.

Almost 2 million square feet are unrented at 1 and 4 World Trade Center, the first buildings to open at

Ground Zero. Agreements were signed for about 340,000 square feet in 2014, with no single lease

larger than the 106,000 square feet that digital-advertising company Media Math took in July at tower 4,

according to CoStar Group, a Washington-based research firm that tracks office leasing.

At that pace, the towers wouldn’t reach 95 per cent occupancy until 2019, almost two decades after the

9/11 attacks levelled the first twin towers.

Few people in the real estate industry doubt that the towers will be filled. The newness of the buildings

and the market-leading rents they’re seeking have contributed to the slow pace of leasing, said Mary

Ann Tighe, chief executive officer of CBRE Group’s New York/tri-state region.

“It takes a while to fill these buildings,” said Ms Tighe, who is co-head of the leasing team at Larry

Silverstein’s 4 World Trade Center and 3 World Trade Center, which is still under construction. “I actually

feel we’ve begun to develop momentum, and momentum is always the secret to leasing.”

So far, about 3.3 million square feet have been rented at 1 and 4 World Trade Center, including Conde

Nast’s 1.2 million square feet, according to CoStar. The banking and insurance industries, which

occupied almost 80 per cent of the old World Trade Center’s leased space, make up 1.3 per cent of

current tenants, according to CoStar.

Media, advertising, computer-technology and communications companies have taken almost 33 per cent

of the space rented so far, compared with only about 3 per cent at the old World Trade Center, the

research firm’s data show. About 40 per cent is from government tenants that agreed to lease space in

the middle of the last decade to help jumpstart construction of the towers. The remainder came from

business services, real estate and other fields.

For High 5 Games, a developer of casino and social media games, 1 World Trade Center was

“complementary to Silicon Valley on the West Coast,” said Patrick Benson, vice president of marketing.





The firm, currently based at 770 Broadway in the East Village, took 87,663 square feet on floors 58 and

59.

“It provided everything that we needed,” including state-of-the-art technology, a “blank slate” of

column-free offices, and room for expansion, Mr. Benson said.

Banks including Citigroup, JPMorgan Chase & Co. and UBS Group have considered and rejected going to

the trade center site.

The few financial tenants at the new skyscrapers have come from outside the industry’s mainstream.

The biggest is investment-research company Morningstar, which took a 30,000-square-foot floor at 4

World Trade Center in September. IEX Group, the stock-selling startup that was the subject of Michael

Lewis’s book Flash Boys, agreed to lease 13,000 square feet in that building in November.

At 1 World Trade Center, BMB Group, C12 Capital Management and Incandescent Technologies each

took spaces smaller than 3,500 square feet.

That 3 million-square-foot tower, the tallest in the Western Hemisphere, is 62 per cent rented, up from

58 per cent in early November, when the first Conde Nast employees started working there, said Eric

Engelhardt, director of leasing for co-developer Durst Organization’s trade center operation. It cost

$3.95 billion to construct, making it the world’s most expensive skyscraper, according to property-

information website Emporis.com.

The building - still known to many by its former name, the Freedom Tower - has faced criticism in recent

months, including a negative architecture review in the New York Times by Michael Kimmelman, who

wrote that the skyscraper “looks as if it could be anywhere, which New York isn’t”. Comedian Chris Rock,

in a Saturday Night Live opening monologue, called it the “never-going-in-there-tower, ‘cause I’m never

going in there.”

That fear of terrorism, or mere discomfort at being surrounded by the memorial in the footprints of the

twin towers honouring those killed on 9/11, was something potential tenants had to confront.

“That’s absolutely one of the conversations that you have to talk to your employees about,” said

Dipanshu Sharma, CEO of xAd, a mobile-advertising technology company. The company in November

took the entire 44,000-square-foot 60th floor at 1 World Trade Center.

“Ultimately, we decided it was the safest space on the planet now, because of the past history,” Sharma

said. “You could take it as a space that could be under attack in the future, because it has been a target,

or you could think of it as a matter of national pride that you’re part of the resurgence.”

One World Trade Center was at the top of the list when Servcorp shopped for a fourth New York

location, said chief operating officer Marcus Moufarrige. The Sydney-based firm provides temporary

high-end offices to global companies, targeting the most famous and opulent properties in the markets

it serves, such as London’s Cheesegrater.

“We’ve been working on this deal for three years,” said Mr Moufarrige, whose company rented about

35,000 square feet at 1 World Trade, the entire 85th floor. “It’s going to be the most iconic building in

the world. There was no hesitation in us wanting to be there.”


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STRATA LAWS WOULD COVER SHARED

AREAS OF ABU DHABI BUILDINGS


Abu Dhabi’s new financial free zone is proposing the introduction of the emirate’s first strata property

laws and owners associations.

According to a set of draft regulations published yesterday by Abu Dhabi Global Market, the capital’s first

financial free zone on Al Maryah Island will include strata laws as part of a set of new real estate laws

aimed at attracting big-name overseas investors to the capital.

The proposed laws could also allow property owners to form owners associations in which owners of

individual units would be able to appoint cleaners and maintenance teams for their own buildings.

Strata laws, which were implemented in Dubai during the previous property boom, allow developers to

sell off chunks of buildings with a greater security of tenure than provided by existing laws in Abu Dhabi.

Owners associations have also been implemented in Dubai and, in theory, allow apartment owners to

take charge of financial decisions governing maintaining their own apartment blocks.

However, legal technicalities mean that associations are still not able to operate in practice.

Strata buildings received negative publicity after developers rushed to sell offices off-plan to investors

during the property boom, leaving some buildings with dozens of landlords who squabbled over the

ownership of common areas and making it unattractive for larger organisations to take space and

negotiate with each owner.

“Strata law only got a bad reputation because it was sold off-plan by developers and bought by

investors, neither of whom realised how it would affect tenants,” said Ben Crompton, the managing

director of the property firm Crompton Partners in Abu Dhabi. “These draft laws are likely to provide

more security of tenure for potential investors.

“The draft laws also enable developers on Al Maryah Island to set up owners associations for the first

time in Abu Dhabi,” he said. “However, like in Dubai, whether they will actually be able to do so still

remains to be seen.”

Previous plans to introduce strata law across Abu Dhabi nearly a decade ago have not progressed.

“These regulations have been comprehensively drafted on a similar basis to those applicable in the DIFC

and appear to be common-law based. Conceptually they do not sit alongside UAE law at all and are a

series of bespoke regulations,” said David Nunn, a partner at Berwin Leighton Paisner.

“If what you want to do is to put together a series of laws that closely resemble those of sophisticated

legal systems in the West, which superficially look attractive to international investors, then you would

probably come up with something like this,” he said.

Lawyers said that the draft strata laws for Al Maryah Island are among a raft of new measures for the

free zone, which also include regulations providing for “mortgages over leases”, a power of sale for

mortgage lenders by private treaty, an ability for mortgagees to take receipt of rents and profits and the

appointment of a receiver by a mortgagee. The regulations also provide for purchasers of land to make

priority searches and lodge a caveat on title as a protective measure.





“The property regulations contain some features that are new to Abu Dhabi and that will be broadly

welcomed, subject to seeing how the systems for implementing and enforcing them are set up,” said

Duncan Pickering, a partner at DLA Piper.

“The strata title regulations seem comprehensive and, interestingly, also provide for mandatory escrow

accounts to be set up by developers filing strata plans to offer protection to unit purchasers.”


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MINIMALIST STYLE AT A MAXIMUM

PRICE FOR AL GHURAIR DEBUT

APARTMENTS IN DUBAI


Walking into Ibrahim Al Ghurair’s offices in Downtown Dubai is a similar experience to entering a

minimalist show flat.

Modernist white sofas stand against blank white walls and a sleek kitchen surface devoid of clutter is

visible against floor to ceiling windows featuring chrome coloured aluminium finishes.

Mr. Al Ghurair, who is entering Dubai’s property market as a developer for the first time, has built a full-

sized replica of one of the 50 flats from Muraba Residences – currently under development on the

Eastern crescent of the Palm Jumeirah between the Anantara and Rixos hotels.

Having bought the land from Nakheel 18 months ago – and founded his new development company,

Muraba, just over a year ago – Mr. Al Ghurair who previously worked as a commodities trader and then

in the properties division of Dubai-based family conglomerate Al Ghurair Group, is pressing ahead with

ambitious plans.

Work on the Dh300 million nine-storey project started in the third week of November last year with the

appointment of the contractor Khansaheb.

A marketing launch is due to take place later this month.

But one thing is certain; Mr. Al Ghurair is passionate about the architecture of his project, travelling all

the way to Spain to find a designer he felt was suitable to meet the needs of his scheme – RCR

Arquitectes.

“Most apartment building designs start with the building itself; creating a shell into which the apartment

layouts have to fit,” says Mr. Al Ghurair, relaxing on the mock-up apartment’s white sofa and gazing out

of a show window that would open out to a view of the Burj Al Arab.

“We’ve approached it from the other way around; we asked the architects to look at the plot, its

location, aspect and orientation and then start with the apartment design; optimising the design from

the inside out, rather than creating a building shell and then fitting apartment units to that frame.”

Facilities include a swimming pool overlooking the Arabian Gulf and the Dubai skyline and an indoor

gym.

But prices for the 46 apartments and four penthouses are eye-wateringly high.

The smallest two bedroom apartment, at 1,700 square feet, starts at Dh4.9 million. Prices for 6,600 sq.

ft. penthouses stand at a whopping Dh25m.

Q&A

What is Palm Jumeirah?





One of the world’s biggest artificial islands, Palm Jumeirah was built by Nakheel between 2001 and

2007. It includes a 5.4 kilometre monorail connecting the Atlantis Hotel to the Gateway Towers at the

foot of the island.

How much do most apartments cost there?

House prices on Palm Jumeirah, are some of the most expensive in Dubai. According to Asteco, during

the third quarter of last year, apartments on the palm shaped island sold for between Dh1,200 and

Dh2,800 per square foot – an increase of 21 per cent compared with the same period a year earlier. The

only comparable prices for major areas in Dubai covered by Asteco are for Downtown Dubai where

apartment prices stood at between Dh1,600 and Dh3,000 per sq. foot.

What are the plus points of Muraba Residences?

If the mock-up apartment is anything to go by, then the interior architecture of each of the individual

apartments will be stunning. I particularly liked the minimalist feel to the kitchen and bathroom.

What are the drawbacks?

The project has only just started being built and the developer is a new kid on the block with no track

record. It is also a shame that the private beach is a short walk away from the block and could be

overlooked by further building work by the time residents are in situ.


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ETIHAD RAIL AWARDS CONTRACT FOR

EMPLOYEE HOUSING IN MIRFA


Etihad Rail has awarded a contract to design and build 170 new homes for employees of the new railway

in Mirfa in the Western Region as the company pushes ahead with ambitious plans to connect the UAE

with neighbouring GCC countries by train.

National Transport & Contracting Company, the local building company awarded the contract, said that

construction of the beachfront residences in the Western Region town would be completed in the second

half of next year.

It added that the flats would be equipped with advanced technology and entertainment systems and

would accommodate employees of Etihad Rail DB, the operating partner for stage one of the network

that has already been working in the Western Region for more than a year.

Etihad Rail secured a Dh4.7 billion five-year bank loan last year to build the first phase of the $11bn

national heavy rail network.

That phase, covering about 264 kilometres in the west of the country from Sha and Habshan to Ruwais

via Mirfa, is now complete and has begun operating trials, the company said last September.

“Our plan to build a dedicated residential building for our employees is a prime example of our

commitment to our employees,” said Shadi Malak, the acting chief executive of Etihad Rail DB. “It will

not only mitigate the safety risk of a commute from Abu Dhabi, but by establishing a comfortable,

strategically located community for our personnel, we are creating an environment where productivity

can be maximised.”

Four months ago, Etihad Rail executives said that the company was ready to secure federal funding and

award contracts to build the second phase of the UAE railway project, which at 628km is the longest of

the three planned stages.

However, since then no further announcement has been made.

A consortium comprising Italy’s Saipem and Maire Tecnimont and UAE-based Dodsal Engineering and

Construction was awarded the main civil and track works contract for the first phase, and last year

Etihad Rail created a joint venture with Germany’s Deutsche Bahn, Etihad Rail DB, to operate the first

stage and act as consultant for the others.

Etihad Rail’s network is intended to span about 1,200km, connecting regions of the UAE to neighbouring

GCC countries.


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ALDAR SAYS BROKEN WINDOWS IN

GATE TOWERS ‘AN ODDITY’


A local developer that had a number of windows shatter in one of its high-rise buildings, says the

windows’ installation “outperforms construction norms”.

Residents had voiced concerns about safety after inner panes in two tempered-glass windows

spontaneously shattered last week. Aldar said it was replacing the glass and was further investigating

the cause of the breakage.

“Following the inspection, the engineers confirmed that the likelihood of spontaneous glass breakage in

Gate Towers is very low,” Aldar said.

“After 15 months since the tower was completed, and more than two years from the glass installation,

there have been only three incidences of windows cracking – this outperforms construction norms.”

Residents in three Gate Towers apartments and another in the Arc, also part of the structure, said they

had window damage.

Spontaneous glass breakage can occur in tempered glass, the type used in Gate Towers. The glass is

built to shatter in small pieces rather than large shards.

Gate Towers’ facade has more than 44,000 double-glazed units, a total of 88,000 glass lites, with eight-

millimetre and 10mm glass lites separated by 16mm of air.

“It’s not uncommon for tempered glass to break spontaneously and there are a number of reasons why

it happens,” said Russell Winser, an associate director at Buro Happold Engineering and an expert in

building facades. “To try to minimise failures, there are a number of additional quality control processes

that can be carried out.”

Factors that contribute to glass breakage include damage during installation or wind and temperature

changes.

Aldar said the glass underwent heat-soak testing, which significantly reduces the likelihood of breakage

caused by nickel sulphide inclusion defects that can occur during manufacturing.

Mr. Winser said that because spontaneous glass breakage was a risk with tempered glass, it was usually

recommended that its use be minimised. However, it can be the most appropriate to use depending on

design and other factors.

“If it’s a very tall building with a high tonnage of tempered glass, the likelihood of failure is higher than a

smaller building with less tempered glass,” he said.

During design development, it should be ensured that the glass suited the requirements of the building.

“I think the most important thing is correct specification, correct processing and careful handling during

installation,” Mr. Winser said.

Aldar said that the residents whose windows had broken last week would have them replaced within a

week.





“The safety of our residents and employees is of paramount importance and both Aldar and Khidmah

take this matter very seriously,” the company said, referring to the facility management company for

Gate Towers.

Residents whose windows had broken previously, said having them replaced had taken much longer.

Shawwal Shahid, 29, said he came home to his apartment in the Arc in August to find that the window

pane had broken. Initially he was afraid it would fall down and posed a threat to other people, since he

did not know there were two layers.

“It took 106 days for them to actually come and fix it,” said Mr. Shahid, who has a one-year-old

daughter.


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With 29 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 - UAE

+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.

NEWS BRIEF 02 - Asteco Property Management€¦ · emirate's economy a Dh14 billion boost by 2020 -...

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Transcript of NEWS BRIEF 02 - Asteco Property Management€¦ · emirate's economy a Dh14 billion boost by 2020 -...