NEWS BRIEF 09 - Asteco Property ManagementDAMAC AWARDS DH600M CONTRACT FOR AYKON CITY TOWER DEPA...

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

© Asteco Property Management, 2018 asteco.com IN THE MIDDLE EAST FOR OVER 30 YEARS

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

NEWS BRIEF 09

SUNDAY, 04 MARCH 2018


© Asteco Property Management | 2018 | asteco.com

IN THE MIDDLE EAST FOR OVER 30 YEARS



REAL ESTATE NEWS

UAE / GCC

AUSTRALIAN THEME PARK DEVELOPER WANTS TO RIDE THE UAE WATERS

MOVING HOUSE: ADVICE FROM EXPERTS

SAUDI FUND VENTURE TO BUY STAKE IN ACCOR PROPERTIES

CHINA TO INVEST $300B BY 2030 AS PART OF ONE BELT, ONE ROAD PROJECT

OCCUPANCY UP, DAILY RATE AND ROOM REVENUE DOWN ACROSS REGION’S HOTELS

FIRST JUMEIRAH HOTEL TO OPEN IN BAHRAIN

SERVICED HOMES ARE THE NO-HASSLE WAY TO RENT

WHY UAE PROPERTY MARKET IS POISED FOR A REBOUND

HOW THE RIGHT BROKER IS KEY TO YOUR FIRST HOME PURCHASE

AUSTRALIA SEEKS TO BOLSTER TRADE, INVESTMENT TIES WITH UAE

NEW LEISURE, RETAIL, BUSINESS PROJECT TO TRANSFORM PART OF MUSCAT

GULF DEVELOPERS URGED TO BOOST ELECTRIC CAR CHARGING POINTS

BAHRAIN LAUNCHES REAL ESTATE REGULATOR IN EFFORT TO BOOST INVESTMENT

GCC GROWTH IN STRONG REBOUND

DUBAI

DUBAILAND EMERGES AS TOP LOCATION FOR NEW TENANTS

DUBAI LOCATIONS WITH THE BEST RENTAL RETURNS

DUBAI’S DEVELOPERS ARE THINKING BEYOND BRICK-AND-MORTAR

DEVELOPERS HAVE WORK TO DO ON THEIR PROFIT MARGINS

IS DUBAI’S HOSPITALITY MARKET TOO FRAGMENTED?

DRAWING IN RESIDENTS THROUGH DESIGN

WHO WILL SAVE DUBAI’S OLD BUILDINGS?

ARE POST-HANDOVER PAYMENT PLANS COMING TO AN END?

LEASING A HOLIDAY HOME IN DUBAI

LIFE IN THE LIV


© Asteco Property Management, 2018 asteco.com

DEFINING LANDSCAPES SINCE 1985



REAL ESTATE NEWS

OMNIYAT AIMS FOR A COSTLIEST PENTHOUSE TREBLE

A MALL IN DUBAI DEDICATED TO HOMES AND FURNISHINGS

DAMAC AWARDS DH600M CONTRACT FOR AYKON CITY TOWER

DEPA 2017 PROFIT SURGES ON RECOVERY OF LONG TERM RECEIVABLES

WHO IS RESPONSIBLE FOR A SMASHED WINDOW - THE LANDLORD OR THE TENANT?

DEVELOPER ROPES IN BANYAN TREE FOR MAIDEN RESIDENTIAL PROJECT

INDIANS INVEST DH83.65 BILLION IN DUBAI PROPERTY IN 5 YEARS

MALL IN DUBAILAND TO OPEN BY END OF 2018

DEVELOPER SEEKS DISCERNING BUYERS FOR LUXURY PALM PROJECT

DEVELOPER MAKES DUBAI DEBUT WITH A BANG

DUBAI PROPERTY BROKER ACQUIRES MORTGAGE CONSULTANCY

DUBAI PROPERTY PRICE DECLINES SET TO CONTINUE UNTIL 2020

ATLANTIS, THE PALM SET TO LAUNCH WORLD'S FIRST SOCIAL MEDIA SUITE

DUBAI BUSINESSMAN BECOMES FIRST RESIDENT OF TRUMP TOWER B IN PUNE

DUBAI’S PROPERTY SALES REMAIN STUCK IN SLOW MODE

AZIZI'S 'ICONIC' DUBAI SKYSCRAPER TO BE WORLD'S FIFTH-TALLEST

ABU DHABI

THE SILVER LINING IN A SLOW REAL ESTATE MARKET

ALDAR APPOINTS DAVID DUDLEY TO KEY POSITION

NEW AREAS GET POPULAR AMONG ABU DHABI RESIDENTS

SALES SET TO LAUNCH AT LUXURY ABU DHABI WATERFRONT PROJECT

NORTHERN EMIRATES

SHARJAH AND NETHERLANDS TO BOLSTER TRADE TIES AND INVESTMENT

INTERNATIONAL

FIVE GLOBAL SKI RESORTS THAT MAKE A GOOD INVESTMENT

LIVERPOOL: A BUY-TO-LET HAVEN






REAL ESTATE NEWS

SENIOR CARILLION EXECUTIVE SOLD $1.1M WORTH OF STOCKS BEFORE COLLAPSE

INVESTMENT IN HONG KONG'S COMMERCIAL PROPERTY MARKET HITS NEW HIGHS IN

JANUARY

PENDING HOME SALES IN U.S. STUMBLE 4.7 PERCENT IN JANUARY

SOUTH AFRICA BRACES FOR ECONOMIC FALLOUT OF LAND NATIONALISATION MOVE

COMMERCIAL INVESTMENT ACTIVITY IN U.S. TO CONTINUE TO THRIVE IN 2018






AUSTRALIAN THEME PARK DEVELOPER

WANTS TO RIDE THE UAE WATERS Wednesday, February 28, 2018

One of the beachfronts in the UAE could be host to a mega-scale water theme park if an Australian company has

its way.

“The UAE’s leisure and entertainment industry is forecast to reach 45 million visitors a year by 2021 … and we are

very interested in participating in this growth,” said Bradley Sutherland, CEO of Actventure, which is currently

developing a Dh1.2 billion resort on the Sunshine Coast in Queensland, Australia. “We convened our advisory

board meeting in Dubai to discuss potential locations and partners for a UAE roll-out. Other global sites are (also)

being considered.”

Incidentally, Actventure is part of Sanad Capital, itself is the real estate arm of Dubai-based Najibi Investments. It

was in 2016 that Sanad confirmed plans for its water theme park in Australia. Sanad’s shareholders include Talal

Najibi and David Baird, apart from Bradley Sutherland.

“Believe it or not, the Australian market has minimal offerings in the theme park and water park industry

compared to the international market.” - Bradley Sutherland | Sanad shareholder

Dubai and Abu Dhabi have been scaling up their themed attractions and thus build on the strengths they already

have in offering tourists — and residents — a retail experience. The Sharjah Waterfront City recently confirmed

that a water-based theme park and rides will be key components of the project’s first phase of development.

But investing in such attractions can come with a long payback period, as has been the case in destinations

elsewhere. And they also tend to cost quite a bit, both in their build and maintenance.

But Sutherland is not too fazed with how Actventure’s first project is faring on the development side.

“Believe it or not, the Australian market has minimal offerings in the theme park and water park industry

compared to the international market,” he said. “There are a number of small operations but very limited in terms

of offering and products.

“Based on a conservative financial model completed by a major international accounting firm, we anticipate solid

profits in the first year of operation. (And) increasing substantially over the following years with a full RoI (return

on investment) within four years from operation.

“The model also shows a potential IPO within this time frame once international sites kick in, which increases the

RoI significantly.”

Phase one of the Sunshine Coast venture will have the six-hectare waterpark, an outdoor “adventure tower”, and

a 6,000 square metre retail zone. This phase was approved by the regulatory authorities in February last year.

Phases two and three are currently awaiting the sign-off, and will include a 225-room hotel, an action sports

precinct with facilities for skateboarding, BMX biking, and the “Wave Reservoir”, which the developer says will be a

first for Australia.

“Actventure controls all of the land including both freehold and leasehold elements,” the CEO said. “This creates

flexibility for us when discussing various elements of the project, such as the hotel, with joint venture partners.






“We have now completed full masterplanning with the Thinkwell Group, a world leaders in theme park design. We

have competed the water park design with Whitewater West and have development approval from the Sunshine

Coast Council, the authority, for 70 per cent of the site in the initial stage and a bulk earthworks approval for the

total site. This enables us to start moving earth within the next couple of months.

“Simultaneously, we are in talks with some individuals and institutional investors about Actventure. We

participated in a road show in Asia promoting it to potential strategic investors and organised by Colliers with PwC

and The Commonwealth Bank of Australia.”

Source: Gulf News

Back to Index






MOVING HOUSE: ADVICE FROM EXPERTS Tuesday, February 27, 2018

People move homes in search of better opportunities and locales, whether across borders or within the city.

Dubai has been a melting pot of cultures and a welcoming home to many nationalities from around the world.

While it is very exciting to arrive in a new country, moving homes can be tedious and nerve-wracking if you do not

have the support of the right moving company.

Ensuring all your belongings are packed securely and reach their destination in a safe manner; ensuring these

belongings are then unpacked as lovingly and installed in the new home; ensuring your paperwork for transit and

cargo is in order; and ensuring all necessary fees, regulations etc. for moving to your new home have been

adequately met — all this and more can be taken care of by a professional packing and moving company, making

the experience seamless and stress free.

Advance planning

Planning your move ahead of time allows you to sort belongings, look for suitable moving companies, dispose of

unnecessary baggage — saving you time, money and stress. Checklists are your best friends at such a time.

Abhilash Nair, regional manager, removal division, ISS Worldwide Movers, also suggests pre-packing personal

items, which can save time on the day of the move. “Once you have selected a moving company, normally they

will drop packing material to you if you don’t have any, to allow you to pre-pack things,” says Nair.

Once you have identified the things you wish to pack and move, and disposed of the rest, your estimates from

moving companies can be more accurate, says Tarun Kumar, CEO, Move Hub Freights (formerly Twiga Logistics).

“Decide what you are moving before the estimator visits your apartment,” says Kumar. “Items which will not move

should be clearly identified and disposed, sold or given away before the move day. Any changes at the last minute

would be additional costs.”

Verifying credentials

Kumar advises that with the large number of moving companies available, it is essential to verify the bona fides of

the moving company to ensure there are no last-minute surprises or shocks. “Ask for a valid trade licence. There

are several transportation companies in the market, who do offer moving services. However if moving/relocation

is not mentioned as an activity on their trade licence, clients could be shortchanged in terms of service levels with

untrained staff leading to delays in work completion, damage to items, lack of after-sales service etc.,” says

Kumar.

Nair says a professional moving company will take away a lot of pressure from the whole process. “Identify

someone who can create proper estimates and execute packing, inventorying and re-fixing at destination,” he

adds.

Transit insurance

Nair also recommends getting a transit insurance, especially for high-value items. He also cautions to take special

care of smaller items with higher value like currency and jewellery. It is advisable to find a safe place to store

valuables on the day of the move. If moving a computer, a backup of files can avoid any headache later.

Building and community rules, permissions

To avoid unnecessary delays and confusion on the day of the move, it pays to be aware of building regulations

and permissions, both from where one is moving out as well as where one is moving to. “We have seen several






instances where clients do not secure the necessary permissions even until the day of the move,” says Kumar.

“This can lead to unnecessary cancellation and rescheduling charges.”

Nair adds that completing paperwork in advance ensures adequate arrangements for parking and lift usage.

“Inform your security or reception at origin and destination well in advance, so that they can also prepare for your

move with parking space, lift, etc.,” says Nair.

Source: Gulf News

Back to Index






SAUDI FUND VENTURE TO BUY STAKE IN

ACCOR PROPERTIES Wednesday, February 28, 2018

Accor SA agreed to sell a majority stake in its property business to a group of investors including Saudi Arabia’s

Public Investment Fund for 4.4 billion euros ($5.4 billion) in cash as the French company seeks to expand in other

markets.

Singapore’s GIC Pte sovereign-wealth fund, Credit Agricole Assurances, Amundi SA, Colony NorthStar Inc and

other investors joined forces with the Middle Eastern fund to purchase a 55 percent stake in AccorInvest,

according to a statement Tuesday from the French company.

Saudi Arabia’s PIF wants to become the world’s largest sovereign fund as the kingdom tries to diversify away from

oil under an economic transformation plan known as Vision 2030. The sale of a roughly 5 per cent stake in oil

giant Saudi Arabian Oil Co. is expected to provide more funds for investments.

In October, the fund hired the head of Qatar Investment Authority’s real estate arm as its chief development

officer, people with knowledge of the matter said at the time.

Accor, Europe’s biggest hotel operator, is divesting assets in mature markets as it seeks to expand in emerging

economies. In October, the Paris-based company offered to buy Australia’s Mantra Group Ltd in a deal that valued

the hotel and resort operator at A$1.2 billion ($936 million.)

AccorHotels will operate the AccorInvest hotels under contracts of as long as 50 years, with a renewal option,

according to the statement. The deal is expected to be finalized in the second quarter and will be submitted to a

meeting of AccorHotels shareholders for consultation.

Source: Gulf News

Back to Index






CHINA TO INVEST $300B BY 2030 AS PART

OF ONE BELT, ONE ROAD PROJECT Wednesday, February 28, 2018

China’s outbound direct investment in The Belt and Road Initiative will reach $300 billion by 2030, according to the

chief economist of Bank of China.

“The investments will more than double from the current levels and there will be a lot of transactions related to

belt and road initiative,” said E Zhihuan, while speaking at the Global Financial Markets Forum in Abu Dhabi on

Wednesday.

China is investing heavily in a number of countries as part of the initiative to build roads, railways, ports and oil

and gas pipelines.

In the UAE, Chinese companies are involved in the construction of a terminal at Khalifa Port and in the

development of oil and gasfields in Abu Dhabi.

China National Petroleum Corporation (CNPC) and CEFC China Energy signed a 40-year concession agreement

with Adnoc to develop the emirate’s prized onshore oilfields which will produce roughly about half of Abu Dhabi’s

oil production in 2017.

UAE, China also set up a joint strategic investment fund worth $10 billion in late 2015, financed equally by both

countries to take up projects under the one belt initiative.

Speaking at the same forum, Keyu Jin, Professor at the London School of Economics, said one of the major

challenges facing one belt, one road project is the political relationship with the recipient countries especially

China’s relationship with the US.

“Despite these economic projects which the recipient countries need, they are met with a lot of political resistance

along the Belt road. It is shared economic benefits that China is really trying to push but unfortunately that has

been misunderstood vastly and too frequently.

Source: Gulf News

Back to Index






OCCUPANCY UP, DAILY RATE AND ROOM

REVENUE DOWN ACROSS REGION’S

HOTELS Monday, February 26, 2018

The performance of the Middle East’s hotels was mixed this January, according to recently released data from

STR.

Compared to the same month in 2017, hotels throughout the Middle East saw occupancy increase marginally by

1.9 per cent to 69.1 per cent.

The average daily rate (ADR) declined, however, by 3.4 per cent, to $170.28 (Dh625.43). And the revenue per

available room (RevPAR), a key metric used to measure the health of a hotel, declined by 1.6 per cent to $117.75.

Saudi Arabia suffered a fall in ADR year-on-year, with the daily rate of the country’s hotels dropping by 5.2 per

cent to SAR566.34.

The country’s RevPAR increased by only 0.9 per cent to SAR336.70.

According to the report from STR, the January school holiday, which fell primarily in February last year, pushed a

16.4 per cent rise in demand in Saudi Arabia. Both occupancy and ADR levels continue to be pressured by supply

growth, which rose to 9.3 per cent for the month.

As STR reported last week, Saudi Arabia’s hotel development pipeline represents 76 per cent of the existing room

supply in the country. However, STR analysts stress the importance of considering the long-term investments

being made in tourism and hospitality as part of Vision 2030.

Source: Gulf News

Back to Index






FIRST JUMEIRAH HOTEL TO OPEN IN

BAHRAIN Sunday, February 25, 2018

Dubai government-owned Jumeirah Group will open its first hotel in Bahrain later this month, the company said

in a statement on Sunday. The Jumeirah Royal Saray will open on February 28, a beachfront resort in the northern

coastal Seef district. According to Jumeirah, the 174-room hotel will feature summerhouses and royal residences.

General manager Nordine Al Yafi said in a statement: “[This] is an important opening for us as it’s our first in

Bahrain and first in 2018.”

Source: Gulf News

Back to Index






SERVICED HOMES ARE THE NO-HASSLE

WAY TO RENT Tuesday, February 27, 2018

There has been a steady build-up in serviced apartment launches in Dubai in areas located around the corridor of

Expo 2020. Major developers have been typing up with branded hotel operators or launching their in-house

hospitality divisions to manage and run these serviced apartments. These are mostly targeted at long-stay leisure

tourists, short-term business visitors or expats who have newly moved to Dubai.

With the opening of more family leisure attractions and an anticipated growth in the number of business

professionals likely to visit Dubai for work related to Expo 2020, developers are increasingly adding serviced

apartments as a component to most of their residential projects.

"There has been a significant rise in the serviced/branded/hotel apartment product in Dubai's residential market.

Over 44,000 units are serviced/hotel apartments out of the total 493,000 units of residential stock [9 per cent of

the total residential stock]," explains David Godchaux, CEO of Core Savills.

With further development of serviced apartments within large master plans as well as independent

developments, Colliers estimates the supply of serviced apartments in Dubai to grow annually by 9 per cent. "A

pipeline of 2,500 keys is expected in Dubai Investment Park alone, while Deira and Business Bay are expected to

add another 2,000 keys together," says Filippo Sona, head of hotels at Colliers International Mena.

There is a concentration of serviced apartments in Downtown, Business Bay, the Palm Jumeirah and Dubai

Marina. "However, this is expected to change dramatically as new master communities open up in Dubai, for

instance, Meydan, parts of Dubailand, MBR City, etc.," reckons Hussain Alladin, head of IR and research, Global

Capital Partners.

Over 17,500 serviced apartments are expected to be ready in the run-up to 2020, of which 6,200 are Grade A (by

prominent developers/hotel brands) and over 15,300 are Grade B, informs Godchaux.

While a regular apartment is cheaper to rent, opting for a serviced apartment is more hassle-free and comes with

more conveniences. Renting a regular apartment is more time-consuming and involves expenses such as giving a

security deposit to the landlord and a non-refundable fee to the real estate agency (both vary between 5 to 10 per

cent of the annual rent), furnishing the apartment and the monthly utility bills, including Internet and TV

subscriptions. There's also the endless wait at home for utility connections and deliveries of furniture and other

essentials.

There are several advantages for choosing a serviced apartment over a regular apartment. "The most prominent

ones are the flexibility in terms of length of stay and the fact that apartment is fully furnished. The entire property

is equipped with 24-hour CCTV with secure entry and the availability of round-the-clock staff and service,

including housekeeping and concierge. In serviced apartments, the room rate covers all the services - cleaning,

air-condition, electricity, water, maintenance, other fees - while in residential apartments, the tenant needs to pay

for these services separately. And, serviced apartments also offer recreational facilities such as gym, pool, spa,

steam/sauna, F&B options and a kitchenette," adds Colliers' Sona.

The short-term contracts of serviced apartments do not financially commit new residents for a full year unlike

long-term rentals. This is appealing to those on probation and waiting for stability. There is also the flexibility to

leave at shorter notice with no penalties for early cancellation of contract.






However, all these perks come at a premium. "The range would be between Dh100 to Dh120psf to rent a serviced

apartment, while the average city index is approximately Dh84psf," comments Alladin.

"Yearly annual rent for a prime serviced studio apartment/suite in central locations is in the range of Dh110,000

to Dh130,000," observes Godchaux.

According to Colliers, serviced apartments in Dubai maintained an average daily rate (ADR) of approximately

Dh400 per night during 2017.

"Serviced apartment ADR can fluctuate on a daily basis unless a corporate or a long-term contract has been

signed. Unlike regular apartments, serviced apartments do not follow the rental index published by the Real

Estate Regulatory Agency," informs Sona.

A regular apartment works out cheaper, even with utility costs. However, the annual rents for serviced residences

are relatively much cheaper than daily/short-term rentals. Living in a serviced apartment is essentially like living in

a hotel. Therefore, there is no feeling of being in one's home with no permanent neighbours around.

"Usually, serviced apartments are smaller in size compared to regular apartments, since they are already

furnished efficiently by the developer and because of the shorter length of stay which requires less storage and

belongings by the tenant. Unless the property is a branded serviced apartment, the fixtures and furniture used

can be of low quality," concludes Sona.

Source: Khaleej Times

Back to Index






WHY UAE PROPERTY MARKET IS POISED

FOR A REBOUND Tuesday, February 27, 2018

At first glance, the softening of the property market in the UAE could be viewed as a setback in the industry, yet in

reality, it is a testament to its maturity. With investors driving the UAE property market in recent years,

competition has increased among developers and industry standards have elevated to unprecedented levels,

resulting in better properties and less volatility.

While it is true that overall rents have continued to decline in recent years, the stability of the market means that

investors are accepting lower yields and property ownership is now within reach for what used to be the

perpetual renter.

We have to remember that the UAE is a relatively new kid on the block when it comes to the real estate market.

The fact that it has developed as fast as it has is an impressive feat, competing on the international stage with

markets that have had much more time to grow. With lower rents and a flattening of already reduced sale prices

comes more stability and less risk. It is a reflection that the market is maturing and long-term stability in the

property sector could be around the corner.

Another indicator of market maturity and stabilisation is the redistribution of demand to newer mid-market

communities in 2017. There has been a distinctive focus from agencies and property seekers on the mid-market

segment (Dh1,000 and below per sqft) in September 2017, compared to the same period in 2016. As a result,

agencies who are focused on off-plan sales and have inventory that fall into that mid-market bracket are likely to

see gains.

With many factors at play, we expect a positive outlook for 2018 and beyond for the UAE market, with an

anticipated rebound in 2018 that is bolstered by the projected acceleration of the UAE's economic growth. The

decline in prices in 2017 likely represents the bottom of a cycle that is poised to recover this year, with new

market segments and more product offerings coming on board.

As we look beyond 2018, Dubai in particular will likely see a boom as we head into the next 2 years with Expo

2020 on the horizon. There are a number of defining projects coming up that will continue to place Dubai on the

world property stage, including:

> Dubai Harbour: Initial offering sold out in record time and first phases for release in 2021 should bring in the

market of old.

> Bluewater Island: With the biggest Ferris wheel in the world, which can already be seen rising from the island, it

is aiming to be a global destination for entertainment.

> Dubai Creek Harbour: Another mega attraction with what will be the world's tallest structure will release over

3,000 more units and boost off-plan through to completion in 2025.

These are 3 key projects out of many that indicate an upswing as we head towards 2020 and showcase Dubai as a

world-class city.

Still, the road to Expo is not without its challenges. There remains a potential threat of oversupply in the

residential sector in 2018. Over 120,000 units have been launched for completion by the end of 2020 and if all

these projects were to proceed, the market would definitely experience an oversupply. However, if history tells us






anything, significant oversupply is an unlikely scenario given the low rates of materialisation in the past. Last year,

just 53 per cent of the 32,000 units scheduled for completion in 2017 were actually delivered by the end of the

year.

Overall, a combination of consistent rental yields for investors, a growing mid-market segment and positive

economic sentiment, all against the backdrop of Expo 2020, mean the future is bright for the UAE property

market.


Back to Index






HOW THE RIGHT BROKER IS KEY TO YOUR

FIRST HOME PURCHASE Tuesday, February 27, 2018

Buying your own home is one of the most important things you will ever do because your home is the haven

around which you base your entire life. It is the place where you spend your time relaxing, it is where you

entertain friends and family, it is where you raise your children and it is often the largest single financial asset

within your overall net wealth.

In Dubai, with a shift towards more affordable homes and greater transparency in the market, owning property is

no longer a privilege for older or high-net-worth individuals, but is now a goal that can be achieved by an

increasingly diverse group of buyers.

It is crucial for these younger age groups to know how to navigate the changing property landscape and make the

most of available opportunities to ensure that the most important financial and lifestyle steps they take is the

right one. The single biggest piece of advice that we can offer is to make sure you are properly informed; and the

best way to do that is to use the right real estate broker. In this context, two prevailing trends are relevant, one

demographic and the other technological.

According to the Dubai Statistics Centre, the 25-34 age bracket in Dubai grew by over 80 per cent between 2005

and 2016. Meanwhile, technology continues to play a key role in all parts of our lives. For this age bracket,

technology has become a standard tool for making buying decisions, and this includes real estate. Instead of

traditional advertisements and billboards, information on property is now freely available online, and is being

presented in a whole variety of ways: 360 tours, interactive sites and online transacting mean that the entire

experience of buying a property has fundamentally changed over the past 2 to 3 years.

For buyers, this is where the right broker has an even more significant role to play. We welcome the

professionalisation that has taken place in the Dubai broker community over the past decade as the market has

matured as a residential buyers' destination. The requirements for brokers to have intimate knowledge of

properties they are selling will only increase as a greater proportion of the market is made up of millennials: the

first generation to have been brought up knowing only a technologically-driven world, who are as a result more

discerning and more demanding in all that they do. The better informed and the more demanding a potential

buyer is, the more comprehensive the service a broker needs to offer.

However, according to the Dubai Land Department, 74 per cent of real estate agencies in Dubai have a maximum

of 3 people. This is an issue since small agencies are more likely to encounter financial difficulties, potentially have

less market knowledge and traction and may often treat buyers as guinea pigs: you do not want to be part of a

small agency's trial-and-error process. The need for the real estate market to be demonstrate superior levels of

professionalism has never been greater, and it is in the market participants' interests to do everything necessary

to ensure this.

Property developer awards are another good reference for a buyer when selecting an agency, because they

demonstrate a strong relationship between broker and developer, giving confidence in the broker's level of

understanding.

Another critical issue is the increasing diversification of product. A study by researchers at UAE University stated

that Dubai has one of the fastest growing populations in the world, with a 6.5 per cent growth rate from 2005 to

2015. If this trend continues, the population of Dubai will more than double by 2027, reaching around 5 million.






Such a rapidly-growing population combined with an increasingly diversified economy not only makes the

prospect of investing in real estate more attractive, but also creates the need for greater variation in housing

products; and it puts greater pressure on brokers, because the expertise they are required to demonstrate will

need to be more extensive. This again highlights the importance of dealing with a properly accredited broker.

The opportunities for good returns in Dubai's real estate market are significant and the market remains active.

According to Core Savills, the number of deals for built units in Dubai since the beginning of this year has

increased by 7 per cent year on year, while in comparison, off-plan sales jumped 62 per cent. In fact, according to

a report published by Chestertons Mena, off-plan homes are typically more affordable, evidenced by the fact that

off-plan sales increased by over 110 per cent in Q3 2017 compared to the previous quarter.

For young buyers, the sector is therefore ripe with opportunities, but it is essential to know what you want and to

do your homework; and that means working with an agency which has the requisite knowledge, experience and

capacity to provide the right advice and to match buyers with the properties most suitable for their requirements.


Back to Index






AUSTRALIA SEEKS TO BOLSTER TRADE,

INVESTMENT TIES WITH UAE Wednesday, February 28, 2018

Western Australia, which accounts for the largest share of the continent's trade with the UAE, is seeking to attract

investments into agriculture and mining sectors.

Premier Mark McGowan of WA said his maiden visit to the UAE as the premier of the largest state of Australia was

aimed at giving a fillip to the Dh8.4 billion bilateral trade and investment ties.

After meeting prospective investors to showcase the region's attractiveness as a global business hub, McGowan

said his state, which is also the largest mineral and grain exporter, offers attractive investment opportunities in

mining, agriculture and tourism.

Speaking to Khaleej Times, McGowan said he has scheduled meetings with senior officials and ministers to

deepen existing relationships developed by the Government of Western Australia (GoWA) office in the UAE.

On Wednesday, he met Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO of Emirates airline and Group

and president of Dubai Civil Aviation Authority. He is also meeting Sheikh Nahyan bin Mubarak Al Nahyan,

Minister of State for Tolerance; Sultan bin Saeed Al Mansouri, Minister of Economy; Sultan Ahmed bin Sulayem,

group chairman and CEO of DP World; and other senior officials of DMCC and DP World.

"We want to ensure that the connection between the two sides stays strong as we seek to diversify our exports

and boost two-way trade and investment opportunities," McGowan said.

Coinciding with the UAE's Innovation Month, McGowan's visit also seeks to foster ties between Western Australia,

a global hub for scientific and technological innovation, and the UAE.

He said as the closest Australian capital city to the UAE, Perth is serviced by both Emirates and Etihad. The state

accounts for 47.8 per cent of Australia's exports to the UAE and 74.8 per cent of Australia's imports from the UAE.

"The UAE is also the second largest GCC market for Western Australian agricultural produce, accounting for 27.3

per cent. Carrots alone make up $19 million of the total $25 million in vegetables dispatched to the UAE," said the

premier.

McGowan said Western Australian education has taken centre stage with 3 universities from the state establishing

a presence in the UAE. Both Curtin University and Murdoch University have campuses in Dubai. Edith Cowan

University in partnership with Emirates Group Security runs various diploma programmes.

Pankaj Savara, Commissioner of the GoWA, Middle East office, said McGowan' visit also supports the trade and

investment office based in Dubai and its ongoing activities. "The premier's engagement with Dubai and Abu Dhabi

governments and major business establishments in the Middle East will encourage our office's proactive

facilitation of Western Australian education, trade and investment," Savara said.

He said the GoWA Dubai's role is to facilitate and encourage commercial, educational, investment and cultural ties

between the Middle East and African region and Western Australia.


Back to Index






NEW LEISURE, RETAIL, BUSINESS PROJECT

TO TRANSFORM PART OF MUSCAT Thursday, March 01, 2018

Leasing has begun at a new destination for retail, business and leisure in Muscat which will also offer access to

the beach.

Water-Front is S&T Real Estate’s property investment located in the heart of the diplomatic district of Muscat.

The mixed-use development offers over 25,000 square metres of leasing space for commercial, business, retail

and F&B outlets, and is expected to bring new international operators to Oman for the first time.

Developed over five storeys with three basement levels of car parking, Water-Front is touted as the only leisure

destination of its kind in Oman with external eating areas, walkways and promenades, and a new seafront with

access to the beach.

Working in partnership with Muscat Municipality, the ground floor will offer a double-sided mall with restaurant

outlets on either end.

From small boutiques to designer labels and global chains, the development will offer a retail experience

encompassing fashion, beauty, lifestyle, spa, fitness and more.

The upper three levels will be leased to commercial establishments as office space.

“Water-Front is our first iconic development which will serve as a catalyst for the re-emergence of the Shatti

District,” said Waqas Al Adawi, vice-chairman of S&T Group.

“The location and landscaping of Water-Front is unique and gifted, offering unparalleled views that both

businesses and visitors to the development will certainly enjoy. Moreover, we are confident that the development

will bring blue-chip international operators to the country, some of whom will enter the Oman market for the very

first time.”

Kevin Anderson, Head of Development and Leasing of Water-Front added: “It is an opportunity for international

brands that are keen to have presence in this iconic development, particularly for businesses looking to take

advantage of the location and premium construction design.”

Source: Arabian Business

Back to Index






GULF DEVELOPERS URGED TO BOOST

ELECTRIC CAR CHARGING POINTS Thursday, March 01, 2018

The Middle East boss of car giant Hyundai has urged developers in the Gulf to meet the needs of electric car

owners in future plans for residential buildings.

Mike Song, the carmaker’s head of operations for the Middle East and Africa, also called for clear strategies for

retrofitting existing homes with overnight recharging points.

He said Hyundai has ambitious plans for low- or zero-emissions cars in the region, and that internationally it has a

wider range of drivetrains than any other company, including fully electric, plug-in, hybrid, and hydrogen fuel cell.

He added that fully electric vehicles, using batteries for energy storage, offer the fastest route towards zero

emissions – as long as people can keep their cars charged.

With current home design, that may not be possible, he added.

“There is now very real consumer excitement around electric driving,” Song said. “In our existing urban design,

however, the only people who can realistically make that switch are those who live in a house or villa with an

attached garage, because they are the only ones who can plug into a power supply to recharge overnight. If you

park on the street, or even in basement parking for an apartment building, keeping your battery charged will be

much more difficult.”

While cities worldwide are experimenting with kerbside recharging points for cars parked on the street, Song said

it will be down to property developers and managers, as well as homeowners’ associations, to make sure that

residential carparks can provide a charging socket for each car that needs one, along with a system for billing the

cost.

This will most likely need planning authorities, including governments and municipalities, to incorporate

recharging points into their planning regulations, Song said.

“We must ensure that, if you have allocated parking for an apartment, you can expect to recharge an electric car

as part of that parking. Given time, consumer demand will ensure this happens, but the authorities can help drive

the transition by including this expectation in building codes.”

Hyundai's current production models include electric versions of the IONIQ – which is also available as a plug-in

and a hybrid – and the KONA compact SUV. The company also offers a Sonata Hybrid, and was the first to offer a

hydrogen fuel cell vehicle as a mass-produced model with the Tucson FCEV in production since 2013.

Within the Africa and Middle East region, the company is already offering versions of the IONIQ eco-car in several

markets. It is also introducing the Sonata Hybrid, particularly for taxi use.


Back to Index






BAHRAIN LAUNCHES REAL ESTATE

REGULATOR IN EFFORT TO BOOST

INVESTMENT Thursday, March 01, 2018

Bahrain has launched an agency to regulate its real estate industry in an effort to crack down on abuses in the

sector and draw in more foreign investment.

With state finances hit by low oil prices, the kingdom is seeking to develop non-oil industries, but the image of its

property sector has been hurt by reports of rogue agents working without proper training or legal support. The

state-backed Real Estate Regulatory Authority (RERA) started operating on Thursday and will initially focus on

licensing real estate service providers and sales of off-plan projects, which are as-yet unbuilt properties.

All real estate professionals, including developers, brokers and sales agents, will need to obtain a licence from

RERA by August 31, the official Bahrain News Agency said.

RERA will support Bahrain’s objective of becoming a leading real estate investment destination for both regional

and international buyers, BNA quoted the authority’s chief executive Shaikh Mohammed Bin Khalifa Al Khalifa as

saying.

Weak demand caused average residential rents in Bahrain to fall 16.2 per cent from a year earlier, property

consultants Cluttons said in a report late last year.

Source: Gulf News

Back to Index






GCC GROWTH IN STRONG REBOUND Friday, March 02, 2018

The GCC countries are marking a turning point in 2018 as their economies overcome two difficult years of a low

oil price environment and various austerity measures, economists and analysts said.

While the combined GDP of the GCC is expected to hit 2.4 per cent from 0.1 per cent last year, expanding at the

fastest rate since 2015, the wider Middle East region's GDP is expected to grow 2.9 per cent in 2018, up from 1.1

per cent in 2017.

Mohamed Bardastani, ICAEW economic advisor and senior economist for Middle East at Oxford Economics, said

Middle East economies are recovering from the difficult years of a low oil environment, various austerity

measures and geopolitical risks.

"But more reforms are required to address the fundamental problems that have plagued so many countries of

the region for so long, including reducing high unemployment rates, promoting fair competition and better

regulation, investing in talent and strengthening women's legal rights," said Bardastani.

The region's overall economic outlook looks positive this year and in 2019, thanks to the rising oil prices (forecast

at $67 per barrel), expansionary fiscal policy and relative improvements in the overall security conditions,

according to ICAEW. For oil exporters, economic activity is expected to pick up, driven by two main factors - rising

oil prices and increased government spending.

In the GCC, the UAE and Saudi Arabia are expected to have additional revenues in the wake of the introduction of

value added tax. "While, GCC's GDP overall is expected to accelerate this year, in 2019, as the Opec phases out its

output cut, the growth is expected to surge further for oil exporters."

Meanwhile, the region's oil importers will benefit from relative improvements in security conditions and political

stability.

In the UAE, the non-oil economy continues to purr along at the start of 2018, analysts at FocusEconomics said.

"The non-oil PMI was well in positive territory in January thanks to greater output and new orders from home and

abroad, while employment growth was the fastest in 12 months and wage growth picked up. On the downside,

real wages are likely to come under pressure from higher inflation this year following the introduction of five per

cent VAT on January 1. The hydrocarbon sector continues to be held back by the Opec oil production cuts,

although the recent significant uptick in oil prices is good news for the already solid fiscal position."

"On the back of higher oil prices, the slew of 2018 budgets presented by different emirates and the federal

government over the last few months are more fiscally expansionary, with Dubai's budget containing a notable

uptick in infrastructure spending as part of preparations for the 2020 World Expo," FocusEconomics panelists

said.

They expect the UAE GDP to rise 2.8 per cent in 2018, which is down 0.2 percentage points from last month's

forecast, and 3.2 per cent in 2019.

"Growth should rise sharply this year, as higher oil prices support confidence and financial conditions. The non-oil

sector will also benefit from capital spending on the Dubai 2020 World Expo, while a looser fiscal stance will

provide further impetus. Downside risks stem from regional instability and potential oil price volatility."

Michael Armstrong, ICAEW regional director for the Middle East, Africa and South Asia, said the outlook for Saudi

Arabia's economy looks positive thanks to reforms and rising oil prices. "However, various challenges remain such






as rising living costs for households and higher input costs for businesses. Sustainable and effective

countermeasures would mitigate the adverse impacts."

Household spending will be weighed down by the five per cent VAT and rising living costs as a result of higher

electricity tariffs and gasoline prices introduced in January. Saudi inflation is expected to reach four per cent this

year, up from -0.3 per cent in 2017. For businesses, levies on expat labour and rising input costs pose additional

challenges. While on the monetary policy side, the expected three rate hikes in the US this year will translate into

higher interest rates in Saudi given the US dollar peg - this would raise the cost of borrowing for businesses and

consumers alike.

"Oman's economy looks positive in the short term but more efforts are needed in order to build a sustainable

economy. There are real opportunities in the non-oil sector, especially in the tourism sector. But the continuing

absence of a clear succession plan is worrying," said Maya Senussi, ICAEW economic advisor and senior

economist for Oman at Oxford Economics.


Back to Index






DUBAILAND EMERGES AS TOP LOCATION

FOR NEW TENANTS Wednesday, February 28, 2018

Landlords in Dubai Marina and Downtown don’t seem to have much room to manoeuvre when it comes to

negotiating with tenants. These high-rise clusters top the list of freehold communities where residents have

moved out, according to a survey by a portal.

“Dubai Marina/JBR and Downtown witnessed more moving-out activity compared to moving-in activity, and as a

result lost a significant number of residents in 2017,” states ServiceMarket.com, which based its findings on the

residential moving requests placed through it. “On the other hand, Dubailand experienced more moving-in

activity.”

With more of its communities getting completed, Dubailand emerged as the most popular area during 2017,

based of these findings. Dubai Marina, which was in pole position for the previous two years, drops to second

place.

“While Dubai Marina is densely populated and more developed, Dubailand offers more affordable rents,”

ServiceMarket.com adds. “These two areas are followed by Downtown, Dubai Silicon Oasis, and JVC/JVT (Jumeirah

Village).

“The most likely explanation for why suburbs like Dubailand and Dubai Silicon Oasis are overtaking developed

areas in popularity is that residents have to face lower rents, there’s less traffic and facilities like malls, schools,

and theme parks are quickly emerging.”

According to the portal, more than 58 per cent of residents moving in happened within 10 areas of Dubai.

Source: Gulf News

Back to Index






DUBAI LOCATIONS WITH THE BEST RENTAL

RETURNS Wednesday, February 28, 2018

The Dubai rental property cycle generally lags the sales market by about 12-18 months. As such, today’s average

asking rents are broadly equivalent to levels last seen in early 2013. The Real Estate Regulatory Agency’s updated

rental index for this year reflects this cycle, with no significant change recorded for freehold rentals as compared

to last year.

Research has shown that many landlords have indeed either reduced their lease values or offered incentives for

their tenants to minimise vacancy levels. Nevertheless, even with the current scenario, Dubai’s real estate rental

returns are still considered among the top in the region as well as on a global level.

Chart-top-locations-for-rental-investors-Dubai

Rather than reporting on general gross yields, which can be misleading as it takes no account of landlord

outgoings, the ValuStrat Price Index focuses on calculating the net rental yields, which factor in the various

expenses and income assumptions associated with a rental return by subtracting service charges, management

fees, taxes and insurances from the rent, and assuming a reasonable 5 per cent vacancy period. This gives a far

more accurate estimate of an investor’s likely annual return.

As of last month, the top Dubai locations with the highest net yields are as follows.

Discovery Gardens

One of Nakheel’s mid-affordable communities is anchoring itself in the top of the list with the highest estimated

net yield of 6.13 per cent. Located close to Ibn Discovery GardensBattuta Metro station and Ibn Battuta mall,

Discovery Gardens has easy access to Shaikh Zayed Road. It is master planned to have green and open spaces,

adding to its overall reputation as an investor and end-user-friendly locale. Annual asking rents range from

Dh43,000 for studios, Dh59,000 for one-bedroom apartments and Dh97,000 for a two-bedroom apartment.

International City

An affordable master-planned community by Nakheel located northeast of the International Citycity on the Dubai-

Hatta highway and Shaikh Mohammad Bin Zayed Road intersection, International City currently offers studios for

Dh31,000 per year, one-bedroom apartments for Dh43,000 and two-bedroom apartments for Dh60,300. All units

have an estimated net rental yield of 5.93 per cent.

Dubai Sports City apartments

An emerging mid-market community in Dubailand featuring the world-renownedDubai Sports City apartment net

rental yields Els Golf Club, Dubai Sports City is located along Shaikh Mohammad Bin Zayed Road. Its net yield

comes close to International City’s at 5.92 per cent. Yearly rents here are around Dh45,000, Dh60,000 and

Dh86,000 for studios, one-bedders and two-bedders.

Remraam

Developed by Dubai Properties in the south-eastern outskirts of Dubailand withRemraam access to Emirates

Road, Remraam offers mid-affordable apartments with a net rental yield of 5.9 per cent. It features low to mid-






rise buildings offering studio, one-bedroom and two-bedroom apartments for an annual asking rent of Dh41,000,

Dh58,000 and Dh82,000 respectively.

Dubai Production City

An affordable community by Tecom, Dubai Production City has apartments Dubai Production Citycurrently

generating average net rental yields of 5.75 per cent. Residents in the community are served by the Me’aisem City

Centre. Rents in Dubai Production City are Dh37,000 for studios, Dh52,000 for one-bedders and Dh73,000 for two-

bedders.

Source: Gulf News

Back to Index






DUBAI’S DEVELOPERS ARE THINKING

BEYOND BRICK-AND-MORTAR Wednesday, February 28, 2018

Brick-and-mortar is not the only way developers in Dubai want to fill up their plots.

In fact, at Sweid & Sweid’s (S&S) new development in Jumeirah Lake Towers, the actual residential component — a

ground plus 31-storey tower — only takes up 10 per cent of the 110,000 square feet land.

The rest is being taken up by wellness elements — a spa, for instance — and a lot of trees and plants (10,000 to be

precise). A setting well in keeping with the name of the project — “Banyan Tree Residences”.

“These are not furnished or serviced apartments, but branded residences,” said Maher Sweid, Managing Partner

at S&S, a boutique developer for whom this is its first residential project in Dubai. Until now it had focused on

developing commercial properties such as The Edge in Tecom, which was later sold to ENBD REIT for Dh280

million. There was also a project in Cairo that it sold to Abraaj Capital.

“It’s true we have been focused on income-generating commercial properties until now,” said Sweid. “But we saw

an opportunity to do something different with the plot we acquired in JLT more than two years ago and when we

later brought on board Banyan Tree (Holdings, a hospitality company headquartered in Singapore.)

“It’s a challenging market right now in Dubai, and if developers are not going to offer competitive advantages to

buyers, it’s gonna be very difficult. So, if set aside only 10 per cent for the residential element, it’s done with a

purpose. We want to bring in a resort style living to the city.

“We enter a project fully funded and with key backers. We certainly don’t take the approach that if we sell units,

something happens on the project.”

It is interesting that Dubai is seeing a handful of hospitality branded residential developments all at the same

time. There are the Bulgari residences in Jumeirah, Atlantis has its under development on the Palm, and Raffles

recently confirmed its second property in Dubai, this one too being on the Palm.

The Banyan Tree Residences has prices starting from Dh1.45 million for a one-bedroom and four-bed units from

Dh8 million. There were also two penthouses, that have already been sold, for “between Dh15 million to Dh20

million”. The average price is Dh1,900-Dh2,000 a square foot.

“The intention is to retain 50 per cent of the units until handover and to use completion to derive benefits,” said

Sweid, who expects to generate Dh640 million in project sales value. Completion is scheduled within the next 18

months.

Apart from this, there are plans to launch two new projects before the year-end. “Gone are the days when a

developer could buy a plot and announce a tower for it to sell,” he added. “These days, each developer needs to

go through a stringent process to bring in unique components to it. Anything less than that will be a tough sell.”

Source: Gulf News

Back to Index






DEVELOPERS HAVE WORK TO DO ON THEIR

PROFIT MARGINS Wednesday, February 28, 2018

When looking at the developer results for 2017, there are a few key variables that leap out, both for the equity as

well as real estate investor. These variables are likely to play out in the coming year as the market rebalances

towards the ready market.

What the results also show is that the torrid pace of off-plan launches will likely slow, as developers have maxed

out on post-handover payment schemes. A return to first principles, via an emphasis on margins, imply that two

themes will likely unfold over 2018.

One, investment flows will move towards the secondary market and developers with ready stock will benefit from

this change in investment destination. And two, despite repeated concerns of “hyper supply” dominating the

headlines, developers have shown a remarkable ability In moderating their pipeline of delivered units, adjusting

construction schedules to meet the demand curve.

This is likely to continue as the major developers continue to gauge end-user and investor demand. The rise of a

few privately-held developers in this cycle has so far not had much impact on the demand curve of the major

listed developers.

If anything it has led to a more competitively priced landscape that has benefited the prospective buyer. This

implies that developers will realise lower growth rates in profit and revenue in 2018, even as market share

concentration levels adjust.

In 2017, the top five developers accounted for more than 75 per cent of sales in Dubai, a level of concentration

seen hardly anywhere else in the world. The key factor that could change the dynamics here is if banks get

aggressive in lending in the off-plan market.

While there have been advances made in mortgages in this area, there is very little to suggest that the

conservative pattern will change in 2018. Unlike the last cycle, where excessive leverage and hyper supply, as well

as exogenous events, led to the bursting of the bubble in 2008.

This time around, banks have been cautious in extending leverage. The price action has reflected this, and despite

the fall in rents (given the adjustment in the job market from lower oil prices), occupancy rates have remained

high in the secondary market, allowing for end users as well as investors to take advantage of prices wherever

they have perceived value. Especially as the incentives offered in the off-plan market have reached their

theoretical maximum.

In terms of margin segmentation, the listed developers will likely continue to focus on the luxury end, moderating

their supply in the mid-income segment and focusing on gentrification as a way of maintaining above industry

benchmark margins. Transactional data bear witness to this as emerging areas such as Dubai South, MBR City,

Dubailand and JVC experienced significant volume growth.

Private sector developers for the most part came in at the lower end of the price spectrum, allowing for this

latency of demand to be absorbed. It is interesting to note that as 2018 has commenced, the aggressive incentives

that were offered in the off-plan market are starting to make way to price discounts being offered selectively in

the secondary market.






While this may attract some alarm, it is only logical that this is happening, given the wide gap that had opened up

between primary and secondary market prices (in some cases by up to 35 per cent or more). These discounts

have been the market’s clearing mechanism, a trend that is likely to continue.

On a broader front, the real estate landscape will likely resemble more of a hub and spoke pattern as emerging

areas — and even Sharjah and Ras Al Khaimah — attract increasing money flows with developers wanting to

maintain their gross and net margins. More likely, private sector developers will move aggressively towards the

outskirts of Dubai and into these neighbouring cities to cater to the demand that exists down the price curve.

For listed developers, there have been moves to diversify towards international markets, as well as create

recurring streams of revenue. And to spin off divisions through the capital markets as a way of raising capital for

their projects. This, along with joint ventures will increasingly become the norm as developers seek to navigate an

increasingly competitive landscape.

Source: Gulf News

Back to Index






IS DUBAI’S HOSPITALITY MARKET TOO

FRAGMENTED? Wednesday, February 28, 2018

With Dubai establishing itself as a leading holiday and business destination across the globe, the hospitality

market has witnessed increased demand for varied types of holiday accommodation options. The availability of a

range of diversified products like hotel rooms, serviced hotel apartments, short-term holiday homes and booking

portals such as Airbnb have given numerous choices to the visitors coming to Dubai.

Nathan Hones, partner at Carter Associates, sees the availability of more accommodation formats as a sign of a

maturing market rather than fragmentation of an existing market. “Since [the announcement of] Decree Number

41 of 2013, outlining the regulations under which short-term holiday homes could be operated in Dubai, the

popularity [of holiday homes] has increased dramatically,” says Hones, adding that the appeal of holiday homes

further grew since April 2016 when the Department of Tourism and Commerce Marketing [DTCM] allowed

individual homeowners to secure licences without having to commission a third-party entity. “All of a sudden, the

short-term stay option opened up to asset owners.”

Since [the announcement of] Decree Number 41 of 2013, outlining the regulations under which short-term

holiday homes could be operated in Dubai, the popularity [of holiday homes] has increased dramatically. -Nathan

Hones

The holiday home market achieved a 29 per cent average premium in average daily rate (ADR) over hotels last

year according to Knight Frank research. “This was largely because most short-term stays are focused around

upscale locations such as JBR or Downtown Dubai,” says Hones. “But it illustrates that the mid to upper-tier

sectors of the traveller market is opting for alternative forms of vacation accommodation in key areas supported

by the same infrastructure as their hotel competition. However, as more affordable, short-term options come to

the market, we expect the ADR levels to reach a par with hotels.”

Asset classifications

The city’s total number of hotel and hotel apartment keys stood at around 106,167 across 678 establishments at

the end of the third quarter last year, according to data from DTCM. “Luxury five-star hotels make up 33 per cent,

four-star hotels 23 per cent and properties in the one- to three-star categories 21 per cent,” notes Samir Salya,

chairman of Reign Holdings, the parent company of developer Arthur and Hardman. “Hotel apartments make up

23 per cent. According to GCP-Reidin data, there are about 15,000 completed serviced apartment units in Dubai,

with a further 30,000 units expected over the next five years.”

Dubai's hospitality supply

The online platform Airbnb has seen considerable growth as revenues increased by 421 per cent and listings

tripled to 3,249 over a 24-month period from August 2015 to August 2017, according to research by Chestertons

Middle East and North Africa (Mena). The relaxed rules have made it easier for homeowners and tenants to cut

out the middleman and list their property on the site.

Choices for investors

Amine Housni, co-founder and head of UAE at Blueground, says the current market offers property investors

more options to rent out their property. “Besides the typical rental agreements to long-term tenants, owners now

have the option to rent their properties through Airbnb either on their own or through short-term rental






management companies,” says Housni. “It is the investors of large hotels that need to consider this new situation

when they are making plans for launching new properties. A growing segment of the hospitality market will be

allocated to the existing supply of apartments and villas, and the ADR should be impacted as well.”

It is the investors of large hotels that need to consider this new situation when they are making plans for

launching new properties.- Amine Housni

But Housni says this could ultimately be good for the hospitality industry. “With new players and business models,

it will become more and more competitive,” says Housni. “As Dubai pursues its strategy to attract 20 million

visitors by 2020, the challenge for all the involved parties is to find the right strategy to differentiate, offer great

value and stay ahead of the competition.”

Industry boom

With the UAE’s hospitality market on a roll, Salya expects the hotel construction pipeline to peak within the next

two years. “While the hospitality industry is booming and the UAE is increasing its role as a global leisure and

tourism hub, the market must adapt to meet demand and the varying needs of visitors,” says Salya. “Serviced

apartments are becoming more popular among those looking to find a nice place to stay without paying full hotel

rights.”

He adds that in the long run serviced products are typically cheaper. However, for short-term stay a hotel might

be more suitable, he says. “In the hotel sector, 28,900 extra rooms are predicted to be delivered in Dubai over the

next two years as capacity expands,” says Salya. “The hotel market is expected to pick up the pace, with three- and

four-star hotels competing with the luxury hotels and all of this particularly in the lead-up to important events,

including Expo 2020. There is also a shift towards more diverse properties, including luxury lodges and bed and

breakfast properties.”

The hotel market is expected to pick up the pace, with three- and four-star hotels competing with the luxury

hotels and all of this particularly in the lead-up to important events, including Expo 2020.- Samir Salya

While there are now more choices in the hospitality market, Salya believes there is a need for consensus and

strategic planning within the industry that will enable innovation. “Just as we’ve seen changes in what visitors want

and have adapted in recent years, we also need to keep our eye on the future as who knows where demand will

be in 10 years.”

Filippo Sona, director and head of hotels in Mena at Colliers International, notes that third parties such as Airbnb

tend to deliver volume to secondary areas of a city or destination as they feature more units consisting private

residences and unbranded hotels.

Olivier Harnisch, CEO of Emaar Hospitality Group, says changes in guest demographic, including an increasing

number of millennials, has made it essential for the industry to provide distinctive experiences. He also sees this

trend as a form of business diversification with a clear strategic direction, and not just fragmentation. “With a

thriving tourism market, it is important for Dubai to offer such varied experiences — and all these add to the

vibrancy of our industry,” says Harnisch.

Source: Gulf News

Back to Index






DRAWING IN RESIDENTS THROUGH DESIGN Wednesday, February 28, 2018

Developer Ellington has made aesthetics and attention to practical living a priority in its building designs. This has

been greeted with enthusiasm by residents of Belgravia 1, the first in a series of three residential mid-rise

apartment buildings in the Jumeirah Village Circle (JVC).

The 181 units of the building have all been sold. “We have people, already living in the neighbourhood, coming in

asking if there are units still available. They can see the way the building is lit at night time, and peek into the

courtyard. It has definitely set a benchmark in JVC in terms of the design,” says Laura Bielecki, the Ellington

Group’s interior design manager. “The beauty of the project is that it has created a proper community spirit,” she

adds. This has been achieved by what Bielecki calls “little hubs” addressing the needs of all residents, such as in-

and-outdoor play areas keeping the kids out of the lobby.

Belgravia I interiors

“We have a mix of 41 different nationalities here, small families and individuals. About half of them are end-users

and the rest investors,” she says. The building’s rents have risen quite quickly over the average in JVC. When the

developer first launched sales, the one-bedroom units could be had for an annual rent of Dh80,000, but today

units are leasing for Dh90,000 plus.

Varying shades of practical living

Besides the design element, monthly events in the building bring residents together, for instance fitness and

social gatherings. The developer has also introduced a handover gift to new residents as a surprise, such as an

overnight car-cleaning service.

Talking of aesthetics, Bielecki says, “We carefully consider each detail. For example, we don’t have glass

balustrades for the most part in the building, as they are very difficult to maintain. So we took metal but played

with its dimensions so that it looks different.” Other easy-to-maintain yet trendy finishes throughout the building

include wood-look floor tiles. Practical quirks, such as high kitchen taps allow pots to be washed easily, and

pullouts to fill a bucket. We have closely assessed how residents would be using their homes, says Bielecki.

We carefully consider each detail. For example, we don’t have glass balustrades for the most part in the building,

as they are very difficult to maintain. So we took metal but played with its dimensions so that it looks different. -

Laura-Bielecki

These concepts have been improved further in Belgravia 2 that opens in summer. “You have to learn from every

property you build. We have listened to comments of our residents and worked on the feedback,” Bielecki says.

The developer has also listened to the needs of the market, adding two-bedroom town homes with maid's rooms

to the ground floor.

Responding to customer feedback, the developer has included two-bedroom town homes with maid's rooms in

Belgravia 2.

Belgravia II

“We noticed that there aren’t too many around of this type. The homes feel semi-detached from the rest of the

building with their own direct entrance,” says Bielecki. The building will feature the same amenities, but they come

in a different style. The lobby, for instance, is still a double-storey space, but the gym will have more funk. The

colour palette has also changed from more neutral beige to browns in Belgravia 1 to white, grey and black in

Belgravia 2.






“We said let’s do a grey building, not bland and cold but a warmer palette, stylish and trendy. It will also be

contemporary but artworks around the building will be based on a black and white photography concept, instead

of paintings like in Belgravia 1,” she adds.

Belgravia 2's interiors have a white, grey and black palette

Belgravia II interior

In terms of practicality in design, new ideas have been introduced, starting with USB sockets, and under-sink flip

downs for sponges, in the kitchen. The developer has redesigned corner cabinets to open easily, and the

wardrobes here have received a professional look.

“I actually spoke to a wardrobe consultant and calculated how much hanging is needed versus shelving and is it

necessary to create suitcase space,” Bielecki reveals. The powder room features a plain wall so it could be dressed

according to what statement one would like to make. With Belgravia 2 sold out, the developer has gone back to

the drawing board to create Belgravia 3. “It again will be a different story concept,” says Bielecki.

Source: Gulf News

Back to Index






WHO WILL SAVE DUBAI’S OLD BUILDINGS? Tuesday, February 27, 2018

As cities in the UAE continue to grow into larger metropolises, experts advocate saving buildings from each

decade. “The buildings that should be conserved and retrofitted are those that have a cultural, historical and

social weight in society,” says Mohamed Khodr Al Dah, chairman of the UAE Regional Group for the Institute of

Structural Engineers (IStructE). Among the buildings that have been preserved include Shaikh Saeed House, Al

Fahidi Historical Neighbourhood or Al Bastakiya, which dates back to the 1800s, the Al Fahidi Fort that houses the

Dubai Museum, and the Al Ahmadiya School, which dates back to 1912.

Modernising history

The Etihad Museum, which opened last year, is an example where a historical building, the Union House, was

restored and integrated in the modern museum design reflecting the moment of the UAE’s creation.

“The rulers back then chose a circular building for the Union House because everyone could sit in a circle, so there

was no hierarchy — a very diplomatic and smart method to sign the manuscript,” recalls Al Dah of the signing of

the declaration forming the UAE.

Union House Dubai

Protecting the decades

Jonathan Ashmore, founder and director of the architectural and design practice Anarchitect, says it is important

to understand the evolution of buildings. “What is iconic, what’s not and what would be worthwhile keeping,

contributing to the fabric of the UAE today and in the future?” he ponders.

Ashmore says it’s not just about salvaging a building and putting it in a glass box. “It’s the experience, which

equally counts,” Ashmore remarks, citing the Sharjah Art Foundation, which was retrofitted so many times it

became almost impossible to retain the original buildings.

Al Fahidi fort

Al Dah says buildings from the 60s, such as Rashid Hospital and the Ambassador Hotel Bur Dubai, and the World

Trade Centre and Radisson Blu Hotel on Baniyas Road are worth conserving. “The World Trade Centre is one of

the first buildings I saw growing up,” says Al Dah. “If you look at newer areas such as Dubai Marina, the Sheraton

and Hilton may be of social, historical value. Of course, the Burj Al Arab and Burj Khalifa definitely need to be

conserved. There are lots of buildings like this out there, which people link to a story.” The Burj Khalifa is already

under discussion to be registered on the Unesco World Heritage Site list, according to Rashad Bukhash, the

chairman of the UAE Architectural Heritage Society.

Al Dah says some historical structures have already been lost due to various reasons, such as the Al Nasr cinema,

which was burnt down in a fire. “An old cinema could have an emotional attachment, or for example the Hard

Rock Café, which used to be a symbol for the city boundary.”

Craig Ross, a partner and head of project and building consultancy at Cavendish Maxwell, says it’s also about

keeping the skyline beautiful for the future. “The Armed Forces Officers Club and Hotel in Abu Dhabi, for example,

is a fantastic building from the 90s.”

Shaikh Saeed House

According to Bukhash,Dubai has around 3,200 traditional houses in 1950. “We only have 10 per cent left today,

yet Dubai is still the best in the Gulf in conserving buildings,” says Bukhash. “






But many buildings from the 70s to the 80s, basically those over 40 years old, are also under demolishment.”

He adds: “Over time we learnt form our mistakes in restoration. Termites and humidity were problems in historic

buildings, [but] now we have solutions for them. Rusted steel is a challenge of more modern structures.”

Demolishing versus conserving

“Money will always be against conservation,” laments Al Dah. “As we demolish we increase the urban density of

the city. Typically the driver for demolition is efficiency of the land; the owners want to get more money out of it,

so they build higher. Although conserving the buildings is harder, we also need spaces in the city where we feel

comfortable and free to walk, like Bastakiya.”

There’s a lot that can be done to extend the usefulness of structures. “For example, the 1970s villas in Jumeirah

can be brought back to life as commercial villas, retaining the walls, but modernising the inside, creating

contemporary heritage,” says Ashmore.

Al Ahmadiya School

Contemporary yet historical desert retreats also make sense such as Fossil Rock Lodge, which converted old

structures from the 1960s.

But Ross worries about life cycle costs. “It takes time to retrofit and reap the rewards. It’s beneficial in future, but

why should [an expat property owner] care. ‘We leave Dubai in 10 years’ [these owners would] say. This is the

hardest thing to get over,” says Ross.

Regulations

Dubai Municipality (DM) regulations are in place to revise buildings before they can be pulled down. Any building

over 40-years-old would be evaluated and receive a score for its historical, social, economic and architectural

elements, according to Bukhash. A Grade I building, such as Shaikh Saeed House, would get a minimum of 90 out

of 100 points. The next grade also requires the structure to stay put, but renovations were permitted, while

buildings of no value can get permission to be demolished.

However, it isn’t always clear cut, as some owners don’t agree with the scoring. “A 30-40 year old building that

brings an income of Dh1 million per year, and now I want to demolish and build a bigger tower to triple my

income. How will you convince me to keep and renovate it?” says Bukhash. “That’s the difficult part.”

Source: Gulf News

Back to Index






ARE POST-HANDOVER PAYMENT PLANS

COMING TO AN END? Tuesday, February 27, 2018

It may be the right time to take advantage of generous payment schemes floating in the market, some property

experts suggest, anticipating developers to start scaling back these incentives.

Payment plans for residential property in Dubai are indeed getting super attractive for buyers, as most

developers now offer post-handover payment schemes that act as a lending option for the buyers. Some of these

payment options extend to five and up to 10 years.

These generous payments plans are probably at or close to their theoretical limit, says Sameer Lakhani, managing

director of Global Capital Partners, noting that it is unlikely for these incentives to increase further. Lakhani also

believes that some of these offers might be scaled back as the gap in prices between ready and off-plan

properties begin to narrow.

“As far as developers are concerned, Dubai real estate is a two-tiered market, with the top seven developers

accounting for 70 per cent of transactions last year, a level of concentration hardly seen anywhere else around

the world,” says Lakhani. “The rest of the market is fragmented with smaller private sector developers that, for the

most part, have been finding it increasingly difficult to match the incentives that the larger players have been able

to offer.” Lakhani points out that the developers’ profit margins have come under pressure as a result of the

incentives they are offering to buyers.

“Margins have come under pressure for developers since 2015 for a variety of reasons, not the least of it being

the generous post-handover payment plans that are now commonplace, but did not exist three years ago,” he

says. “Furthermore, as some developers have also resorted to offering rental payment guarantees, this has

exacerbated the pressure on margins. Given that this has to do with market dynamics, it is unlikely that further

incentives will be offered.”

Margins have come under pressure for developers since 2015 for a variety of reasons, not the least of it being the

generous post-handover payment plans that are now commonplace, but did not exist three years ago. - Sameer

Lakhani

For the rest of the market, Lakhani expects a consolidation through joint development agreements (JDA). “[These

are] similar to those undertaken by Emaar and Meraas, or Emaar and Dubai Holding at the macro level, as the

torrid pace of off-plan launches slows down,” says Lakhani. “

On a private sector level, JDA contracts are becoming commonplace as well, where one partner provides equity in

the form of land, and the other provides for the construction. This trend is likely to proliferate.”

Not all post-handover schemes are created equal; each is designed to cater to specific buyer requirements. “For

some buyers paying 50 per cent during construction and 50 per cent after handover over five years is attractive,”

says Suraj Rajshekar, general manager of Rocky Real Estate.

“Others may find it difficult to mobilise 50 per cent during construction or handover, and would prefer 20 per cent

now and 80 per cent after handover.

However, be cautioned that the developers are factoring interest cost on the selling price, so make smart choices

after carefully reviewing your financial capabilities.”






The VAT impact

Meanwhile, the recent introduction of the value-added tax (VAT) could also give developers reason to continue to

offer flexible payment terms. With developers being able to recover VAT for new projects that are sold within

three years of completion, Mario Volpi, sales and leasing manager at Engel & Volkers, says many developers are

likely to continue to offer attractive payment plans to entice buyers to their new projects. “The developer that can

offer projects with great location, quality of building and facilities and enticing payment plans will be the winners

going forward,” says Volpi.

With developers being able to recover VAT for new projects that are sold within three years of completion,many

developers are likely to continue to offer attractive payment plans to entice buyers to their new projects. - Mario

Volpi

Developers are now trying to reach out to buyers who had been disenfranchised by measures implemented by

the government to prevent the market from overheating, Volpi adds. Such measures included the tightening of

credit facilities for mortgage lending in 2013, which lowered the loan-to-value (LTV) ratio to 75 per cent, increasing

the down payment for property purchases.

“Developers are now effectively catering to this segment, acting as banks, allowing buyers an easier line of credit

on purchases of off-plan property with very little down payment and future monthly payment choices,” says Volpi.

“Allowing payments in instalments is a great help to homebuyers as often these are linked to construction, so they

do not have to be paid monthly. The post-handover plans are, however, mostly paid monthly because by the time

of actually moving in a buyer has paid 40-50 per cent of the purchase price, which lessens the burden of housing

costs on buyers.”

Volpi notes that it was Danube Properties that pioneered the affordable monthly payment plan in Dubai, with

Nshama following suit. Many smaller developers are also now offering similar payment schemes.

“The market benefits as it becomes more fluid due to more transactions taking place by buyers who previously

were perhaps long-term renters,” says Volpi. “Buyers benefit because they can get onto the property ladder, and

developers benefit because their inventory is likely to sell better. Other developers such as Seven Tides and

Vincitore offer guaranteed incomes for investors for a set period. Often the cost of the annual service charge is

also not normally applicable during these times, thus adding to the attraction.”

Attractive purchase terms

Lana Diditska, global property consultant at Gulf Sotheby’s International Realty, believes the move by developers

is good for the market and the economy in general. “Post-handover payment plans offered by developers give an

opportunity for the buyers to be more flexible with their cash flow, avoiding mortgage involvement,” says

Diditska. “It also makes developers more innovative in their approach to winning the client’s preference.”

Post-handover payment plans give an opportunity for the buyers to be more flexible with their cash flow, avoiding

mortgage. It also makes developers more innovative in their approach to winning the client’s preference. - Lana

Diditska

Talking about schemes presently available in the market, Diditska notes that a number of big-ticket developers

have jumped into the post-handover bandwagon. “Meraas recently came up with post-handover payment plans

of 12-36 months for its residential projects. Emaar has 24-month post-handover options for some of its projects,”

says Diditska. “Jumeirah Golf Estates offers a post-handover payment plan as an alternative to full payment at the

time of delivery.

And, of course, City Properties is the leader of the trend with its 10-year post-handover payment plan.”

Diditska considers the availability of diverse payment options as an indicator of market growth and maturity.

“With the buyer’s market of today, we can observe the developers’ pursuit of excellence for the payment






conditions, customer service, delivery time and project quality,” she says. “The favourable terms for investors are

an indicator of organic, natural growth and give the buyers, as well developers, a bigger exposure and leverage

for further expansion and progress.”

Apart from generous payment terms, other incentives routinely offered to buyers include the developer assuming

the entire or part of the property registration charges, equivalent to 4 per cent of property value, payment

schedule being adjusted for the buyer’s convenience and rent-to-own plans.

“In practice, all the possibilities can be discussed within reasonable understanding and mutually beneficial terms,”

she says.

Market benefits

Despite doubts about their impact on the market and on financial standing of developers, lengthy post-handover

payment terms are ultimately good for the market, says Rajshekar. “Developers giving these types of payment

plans is good for the market because it helps in generating sales,” says Rajshekar. “Anything that is allowing deals

to happen and is promoting Dubai is good news for the market."

Developers giving these types of payment plans is good for the market because it helps in generating sales.

Anything that is allowing deals to happen and is promoting Dubai is good news for the market. - Suraj Rajshekar

Rajshekar says developer-backed payment plans will also encourage more foreign buyers into the market. "A

payment plan is also a great help for people who do not stay in the country and cannot get a mortgage from the

bank, as developers are offering payment plans to suit most buyers’ financial requirements.”

Source: Gulf News

Back to Index






LEASING A HOLIDAY HOME IN DUBAI Tuesday, February 27, 2018

With the take-off of organisations such as AirBnB, letting residential property has become more popular than ever

in Dubai. In 2013, Dubai enacted two decrees relevant to the licensing and regulation of holiday homes. They are

Decree No. 17 of 2013: licensing and classification of hotel establishments, and Decree No. 41 of 2013: regulating

the activity of leasing out holidays homes.

What is the difference between the two decrees?

Decree No. 17 of 2013 is a licensing decree that relates to the licensing and classification of hotel establishments

and Decree No. 41 of 2013 is a regulation decree that relates specifically to leasing a holiday home. This article will

focus on the regulation decree.

Dubai has been steadily working towards its goal of achieving more than 20 million visitors per year by 2020,

which is double the number of visitors that were welcomed in 2012. The drive to achieve this goal has been led by

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler

of Dubai, and leading authorities, including the Dubai Department of Tourism and Commerce Marketing (DTCM).

Among other things, Dubai has moved to improve connectivity with the rest of the world and create tourist

attractions and a hospitality industry that is reliable, safe and provides excellent standards. The number of hotel

rooms and hotel apartments is forever increasing, and Dubai recognises that there is fresh value to be gained

from the proper regulation and offering of holiday homes, especially for larger groups of travellers such as

families, which is a key target market.

The regulation decree

The regulation decree applies to holiday homes, i.e. furnished real property units that are designated to be let

regularly and in an ongoing basis. The holiday homes are to be leased or rented out on a subletting basis. The

property can only be used for overnight accommodation, while letting to companies is forbidden. A company can,

however, obtain a licence to sublet a holiday home.

Homeowners and even tenants can lease their properties

Penthouse

Occupiers should first consider whether they can lawfully sublet a holiday home if they are tenants of the

property. In such cases, consider the terms of the tenancy agreement and obtain the landlord’s prior written

consent if necessary. If lenders are involved, it may be a term of the mortgage agreement that a lender’s prior

written consent is obtained prior to subletting.

Any person intending to let out a holiday home must be licensed to do so by the DTCM. Each holiday home will be

classified as either deluxe or standard. The regulation decree sets out, among other things, the DTCM’s duties and

powers, the terms of the licence, obligations of the licensee, fees and penalties.

VAT

DTCM requires licensees to collect taxes and fees for each confirmed booking. We have sought clarification from

the DTCM and Federal Tax Authority to ascertain whether or not VAT is payable on any sums due and we have

been advised that it is.

Among its duties and powers, the DTCM can:






set the technical conditions, requirements and criteria to be met by licensees, and determine the

procedures to grant a licence;

determine applications for new, renewed or varied licences and maintain a database of licensees and

holiday homes in Dubai; DTCM duties holiday homes

determine the licensees’ tasks, duties and obligations;

supervise and monitor licensees and their holiday homes to ensure compliance;

receive, investigate and take action on complaints and impose penalties.

The term of each licence will be for one year and renewable each year. Should an licensee apply for extension of

the term, the DTCM may approve a licence for a term of up to four years.

Among other things, a licensee is obliged to:

notify the DTCM of any variation of details of the licensee;

lease out each holiday home as a whole, rather than in part as separate rooms or bed spaces, on a daily,

weekly, monthly or annual basis;

keep hard and soft copy records of all information relating to the holiday home, accessible by the DTCM;

insure the holiday home for the extent of the licence such that guests are indemnified for any damage

that they might sustain;

subscribe to the e-Programme for Hotel and Tourism Establishments; Dubai holiday home licensee's

duties

provide guests with information on the holiday homes, including their classification categories;

provide maintenance services;

provide electricity and water services for no extra cost to the guests; and

not act as a broker between guests and any non-licensed entity.

The penalties for breaching the regulation decree, notwithstanding any rights that arise from other legislation, are

a minimum penalty of Dh200 and a maximum of Dh20,000. If the same violation is repeated within one year from

the date of the initial breach, the penalty shall be doubled. Any repeated violation within the same period will

continue to double the penalty imposed, up to a maximum fine of Dh100,000. In addition to a monetary fine, the

DTCM also has the power to warn, suspend, and/or cancel the licence.

Source: Gulf News

Back to Index






LIFE IN THE LIV Tuesday, February 27, 2018

The newly launched LIV Residence Dubai Marina brings a new take on luxury waterfront living with a focus on

sustainability and occupiers’ well-being. The development has a distinct contemporary design and features

beautifully landscaped areas, with 70 per cent of the 179 residences having views of the Dubai Marina and the

sea.

Homebuyers can choose from studio, one-, two- and three-bedroom apartments, as well as penthouses. Studio

units start at 40 sq m and can be purchased from Dh749,000, while one-bedroom units that range from 70-90 sq

m are available at around Dh1.19 million.

LIV Residence Dubai Marina

The project is expected to be completed in the second quarter of 2019.

Ishan Khwaja, director, and Latif Habib, CEO of LIV Developers, tell us more about the project.

Why did you choose Dubai Marina for this project?

Ishan Khwaja: It’s all about location and our project is a location within ‘a location’. LIV Residence Dubai Marina is

actually situated in what we refer to as the five-star quarter of the Dubai Marina, surrounded by luxury hotels and

developments from Grosvenor House to Ritz Carlton. It is easily accessible whether you come across the road

where the Westin is, or from Dubai Marina Mall side or Jebel Ali side. Another unique selling point is that it

promotes a beach lifestyle — it’s just 90m walking distance from JBR the Walk before you hit the beach. We’ve tied

up with a nearby hotel where owners can enjoy complimentary private beach access, three pools and tennis

courts.

Latif Habib: In terms of development based in Dubai Marina, almost every developer dreams of having the

opportunity of developing something on the waterfront. We obtained the last piece of land (in our opinion, it’s the

best piece of the land in Dubai Marina) as we were able to successfully combine our vision to have the building

designed in a way that maximises all the views. While 70 per cent of the units have waterfront views, 30 per cent

still have the skyline views. The plot is situated closer towards the deeper water canal parts of the marina

waterfront. Essentially, it’s not just a small strip of water, it’s actually a huge part of the waterfront.

Tell us about your boutique design ethos.

LH: Once you have perfected your concept, design and layout drawings and have chosen your material, the next

step is to see how you can align the concept to the needs of the market. This involves the best use of land and

floor plans so that each interior square foot is utilised to the maximum. We discovered that in Dubai Marina,

kitchens are generally closed-designed and there is a market where nationalities enjoy open-plan kitchen with the

island concept. We paid attention to details such as adding a maid’s room to a two-bedroom apartment or the

grout colour that needs to match with the interiors of a particular room. Interiors such as natural timber, quartz,

natural stone and textured porcelain tiles in addition to state-of-the-art kitchen appliances are some of the ways

that we’ve put attention to detail.

IK: It’s all about paying attention to what customers are missing here in Dubai and providing them a good

location, good price for that neighbourhood, as well as good design and finish. We’ve also incorporated several

community lifestyle features — fantastic roof top terraces, garden areas for kids, as well as a lounge area for the

residents. Everything has been well planned and we’ve incorporated systems to reuse grey water into the design

structure of the building. Naga Architects has been involved in integrating water treatment systems into the

design.






What trends have you come across in the residential development here?

IK: We found that established communities thrive regardless of whether the market is booming or not. In our

mind, Dubai Marina is the most sought-after, established community and we could bring in the experience we

have developing in New York to this city. The execution of this project and the ability to differentiate from other

districts in Dubai tells a lot about our dedication to getting things done.

Tell us about your company.

IK: LIV Developers originated in Los Angeles and New York where we’ve been developing luxury properties. We’ve

been in the UAE since 1991 and have invested in commercial, industrial and residential property across Dubai. In

2015, we decided to do our first tower and residential development and we wanted to find a unique location in an

established community. And that’s how the LIV Residence Dubai Marina concept came to be.

Source: Gulf News

Back to Index






OMNIYAT AIMS FOR A COSTLIEST

PENTHOUSE TREBLE Monday, February 26, 2018

Omniyat is aiming to sweep the top three spots as the developer to have sold the costliest penthouses in Dubai. It

has already cleared the first position, selling a 29,000 square feet (including external area) unit for Dh102 million

to a Gulf investor last year. This was the costliest deal in Dubai last year and the most anyone has paid for a

penthouse.

Now, this year, the developer hopes to get a grip on the other two spots as well, setting base prices of Dh91

million (for a 24,000 square foot unit) and Dh88 million (for 21,000 square feet of ultra-luxury).

All three units are on the One Palm, its project on the Palm which is heading for an end of the year completion.

The developer hopes to generate Dh2 billion in sales from the project, which features 90 odd apartments.

“For the two unsold penthouses, we have received multiple expressions of interest and there’s a lot of back-and-

forth going on between us and these prospective owners,” said Mohammad Hmeid, general manager at LIV,

Omniyat’s sales and marketing arm. “These are mostly related to the details of what they want to have as fit-outs,

etc. These discussions will take a while and we are not pressed for time.

“We have of late seen new interest coming in for the One Palm — selling the costliest unit [in Dubai] sure creates

a strong word of mouth.”

As of now, just over 70 per cent of the available units have been sold. On the project side, the topping out was

done some time ago and the facade work has reached the ninth floor. The developer is also putting up two show

homes, to keep the momentum going.

It would fit in with a wider pattern that developers and property consultants are talking about — that since

November, there is a noticeable interest among high-net-worth investors for upscale projects in Dubai, preferably

those that are ready or are in their final stretch of construction.

Of late, that interest has also extended to offplan launches, with Emaar’s Waterfront, where tower units carried a

price tag of Dh2,000 a square foot, generating quite a bit of demand. A top official at Signature, the developer of

the super-premium 118 at the Downtown, also said appetite for Dubai luxury realty was back after most of 2017

had buyers chasing mid-market options. At the 188, Signature has two duplexes upwards of Dh55 million.

According to market sources, Nakheel too should shortly be coming up with a full-fledged mega launch — that of

its Raffles branded twin-tower on the Palm.

Project launch mode

For Omniyat, the coming days will also see it get back into new project launch mode. Over the last 12 to 18

months, it had focused on completing some of its high-profile ventures, such as the Opus (designed by the late

Zaha Hadid).

Early next month, it is all set to launch a new project, a mixed-use venture.

“Our aim has been to launch three, have three under construction, and have three ready for handover at any

given time,” said Hmeid. “Of late, we had been focused on existing projects — that’s changing with our upcoming

launch and to be followed by another.






“We have never got stuck into community-style developments and which require a lot of time. Instead, our focus

has been steadfast on individual, high-value projects — be it in residential or hospitality. And that’s worked for us

consistently.”

Source: Gulf News

Back to Index






A MALL IN DUBAI DEDICATED TO HOMES

AND FURNISHINGS Monday, February 26, 2018

For Dubai’s next generation of niche malls, it’s the age of specialisation. A new one scheduled for opening this

September in the Al Barsha area will only feature products and services to set up and maintain a home.

That means furniture and accessories, anything that would liven up the interiors, and even electronics stores with

home theatre offerings. But there will be no space for fashion outlets at the ‘Art of Living’ mall, which is being built

by the MMS Group and with 322,000 square feet of leasable area.

“The furniture and home accessories market is pretty scattered in the city,” said Samer Al Omari, CEO at MMS

Global. “First you had all these outlets opening on Airport Road and then another set being created later on

Zabeel Road. But these were all individual stores. And every decade or so, the focal point for the home furnishings

business keeps changing in Dubai.

“What Art of Living is attempting is to bring all the requirements consumers need for their homes into a single

mall-type development. We wanted to consolidate all of the requirements under one roof. And you know why?

“Because the Al Barsha location is the gateway to all of the developments being created next door in Dubailand.

That’s a captive market.”

What Art of Living is attempting is to bring all the requirements consumers need for their homes into a single

mall-type development.” - Samer Al Omari | CEO at MMS Global

Based on conservative estimates, well over 7,000 new homes could be added in the various projects at Dubailand

in the next 26 months.

Clearly, there is also a bigger strategy at work here. Dubai’s mall developers are gradually moving away from

offering the same kind of stores and entertainment options. The feeling in retail industry circles is that the market

will soon consolidate around a few mega malls. And the rest will have to have something extra in them to be able

to command a regular traffic.

It could be location, it could be the F&B options or an entertainment destination that is within reach of residents

within the mall’s immediate catchment area. Any slip up by mall owners in providing these, and shoppers could

well decide to go somewhere else. And then there is always the threat of what online shopping could do to the

fortunes of Tier-2 malls.

For the Art of Living Mall, the developer seems to have made a good enough start. About 250,000 square feet of

leasable area has already been booked, and talks are on to fill up the two anchor store locations.

“On average, we are asking for leases at Dh400 a square foot,” said Al Omari. “But as is the case in any such

leasing activity, there will always be some adjustments made depending on tenant requirements for space, etc.

We haven’t seen VAT costs as much of a factor in finalising lease agreements.

“We do have a three-stage process on the leasing, just to make sure we get the tenant mix right. The tenants have

to complement each other’s business and not be in direct competition.”

Investments on the mall development are said to be in the range of Dh600 million plus. The overall built-up area

of the mall is 508,000 square feet. This is the MMS Group’s first exposure to the mall business.






Dubai has got a fairly good pipeline of mall/shopping centre projects in the works, most of which will come online

within the next two years. Al Barsha and its immediate areas are seeing quite a few of the medium-sized shopping

and entertainment clusters. Jumeirah has already seen this transition to a new set of boutique malls where

shopping is just part of the overall experience mix.

Source: Gulf News

Back to Index






DAMAC AWARDS DH600M CONTRACT FOR

AYKON CITY TOWER Tuesday, February 27, 2018

Damac Properties has awarded a near Dh600 million contract to China State Construction Engineering

Corporation (CSCEC) for one of the towers at Aykon City. The tower includes two basements, ground floor and ten

podium levels, in addition to a dedicated lifestyle and entertainment level, 53 residential floors and a rooftop.

“CSCEC is one of the biggest contractors in the world and after careful consideration of various aspects, we agreed

to the proposed partnership,” said Mohammad Tahaineh, Senior Vice-President – Commercial, Damac Properties.

The 4 million square feet Aykon City is located on the eastern and western sides of Shaikh Zayed road at the Safa

Park intersection and near the Dubai Canal.

Source: Gulf News

Back to Index






DEPA 2017 PROFIT SURGES ON RECOVERY

OF LONG TERM RECEIVABLES Thursday, March 01, 2018

Depa, the Dubai-based interiors contractor that fitted out the world’s tallest building Burj Khalifa, recorded an

almost 200 per cent jump in full-year 2017 net income as it managed to recover long-outstanding receivables.

Net profit for the 12-month period ending December 31 surged to Dh135.6 million from Dh52m reported in 2016,

the company said in a regulatory filing to Nasdaq Dubai, where its shares are traded. The company managed a

Dh27.5m net reversal of allowances for doubtful debts last year and reduced its trade receivable balance, it said.

“The group-wide focus on cash collection resulted in several major long-outstanding receivables being collected,”

Hamish Tyrwhitt, Depa’s group chief executive said. “The collection of the few remaining long-outstanding

receivables will continue to be pursued in 2018.”.

Contractors in the Arabian Gulf region have struggled in the last two years after the GCC governments cut

spending amid softer economic conditions in the wake of the oil price slump. Cash flow was the biggest challenge

faced by construction companies as payments for the completed jobs were delayed, forcing them in turn to

withhold payments to subcontractors such as Depa.

The company said while it has made significant progress in 2017 in collecting outstanding receivables, structural

issues affecting some of the main contractors in the Middle East remain.

Depa generated revenue of Dh1.8 billion in 2017, an increase of 4 per cent over a year earlier. The backlog of

projects at the end of last year declined by 7 per cent to Dh1.79bn, however, the company said the project

pipeline remains strong and it is pursuing further deals in various markets including the Middle East, Europe and

Asia.

Dubai’s Expo 2020, global superyacht orders, and growth in the Depa’s core markets provide strong tailwinds for

the company to grow its backlog with attractive, profitable projects, it said.

“The group’s focus is less on the past and more on the future: delivering existing projects for our clients and

winning new quality projects," Mr Tyrwhitt said.

Depa, which finished a strategic review of its business, is investing in organic growth, while “continuously

assessing acquisition opportunities against its strategic and financial objectives,” he noted.

The company, which reported more than fourfold rise in net income for the first nine months of last year on the

back of its restructuring plan, said it is now focused on the next phase of its strategy of delivering consistent top

and bottom line growth, and cash-backed profit.

Source: The National

Back to Index






WHO IS RESPONSIBLE FOR A SMASHED

WINDOW - THE LANDLORD OR THE

TENANT? Wednesday, February 28, 2018

I live in a ground floor flat with a communal area outside. Recently some kids were playing football outside (I am

not sure whether any of them are from my building) and the ball broke my window. Of course they all scattered

and I haven’t seen any of them since. I informed the landlord, requesting that he fix the window but he is saying

it’s my fault and that he is not liable for any damage caused by such events. It’s not that I can’t afford to mend the

window, it’s just a matter of principle – I do not believe I should have to. What do you say? MO, Sharjah

When it comes to incidents like this, it is difficult to easily place the blame at the door of either the landlord or the

tenant. Firstly, find out if the landlord has any form of insurance? If so, although the landlord will not necessarily

have to actually pay for the repair directly, it will be his responsibility to rectify the repair via the insurance. If

there is no cover, I believe it will be very difficult for any landlord to just accept this responsibility, given that the

damage was caused by the actions of a third party. In this case, if you cannot get an agreement with the landlord,

it will fall on you to pay for the repair/replacement.

I live in an apartment in Jumeirah Lake Towers and my water bills seem to have almost doubled recently. I am not

using any more than I was and I have asked the landlord to look into it, so far to no avail. I can’t see any signs of

leakage in the apartment or the areas nearby but I’m sure there is a problem. I don’t want to have to pay for an

inspection but the landlord doesn’t seem to be doing anything to resolve the situation. What should I do next? DH,

Dubai

Issues with DEWA do not necessarily fall on the shoulders of the landlord especially when the account is in the

name of the tenant. I appreciate that you have informed the owner but I'm not surprised to hear that the landlord

has done nothing to date. The account is in your name so unfortunately it falls on your responsibility. I believe

that getting an inspection would be money well spent and will determine exactly what the problem is and

ultimately who is responsible.

Tawtheeq is now mandatory in Abu Dhabi, so my understanding is that when I lease a new flat the water and

electricity bills will be in the tenant's name. Once the tenant creates their Tawtheeq account, they then need to

get a new connection in their name. However, I have noticed many real estate advertisements stating that

Tawtheeq is included, such as a one bedroom flat in a villa. When I asked the agent about this, they say the water

/ electricity bills are in the landlord's name. Is it legal to sub lease flats in villas with the Tawtheeq and utility bills in

the landlord's name? RP, Abu Dhabi

If the property is offered for rent directly from the owner and he is solely responsible for the property

management as well, then yes it is possible to issue the Tawtheeq with the water and electricity paid by the

tenant. In situations when a tenant is a second party, for example a company, they cannot issue the Tawtheeq

because the utility bills will be addressed to the company, which is not the owner of the property.

The only way possible to issue the Tawtheeq in this instance would be if it is mentioned in the property

management agreement that the company will be responsible to pay the property utilities.






Generally speaking, subleasing by a tenant is not allowed unless the owner is aware and has agreed to it. Having

said that, there is an option in the municipality property management agreement that does allow subleasing and

facilitates individual Tawtheeq. In these cases the utilities will be under the landlord's name.


Back to Index






DEVELOPER ROPES IN BANYAN TREE FOR

MAIDEN RESIDENTIAL PROJECT Wednesday, February 28, 2018

The 'build it and they will come' philosophy does not hold true for Dubai developers any more. In a competitive

market, developers are adding unique components to make their project stand out amid the crowd.

In the case of Sweid & Sweid's new development in Jumeirah Lakes Towers (JLT), the developer has tied up with

the Singapore-headquartered hospitality company, Banyan Tree Holdings, to launch branded residences. The

Banyan Tree Residences include 244 apartments, set in a 32-storey tower that takes up only 10 per cent of the

110,000 square feet plot. The rest of the space is taken up by a Banyan Tree Spa and 10,000 trees and plants.

"To maintain the lifestyle experience, we needed an operator not just in the design phase but also throughout the

life cycle of the project. This project will offer resort style living in Dubai," says Maher Sweid, managing partner at

S&S.

"The line between hospitality and fine living is overlapping more and more," remarks Ho Kwon Ping, executive

chairman of Banyan Tree Holdings.

The developer has already secured a significant amount of reservations and confirmations in the pre-launch

phase. It has sold 2 full-floor penthouses and 4 ground floor duplexes. The average price is Dh1,900 to Dh2,000 a

square foot. The Banyan Tree Residences has prices starting from Dh1.49 million for a 1-bedroom and 4-bed units

from Dh8 million. The 2 penthouses sold for between Dh15 million to Dh20 million, informs Sweid.

The project will be completed in the third quarter of 2019, with construction progressing at a floor a week now.

"We are considering the possibility of adding more 4-bedrooms since the response for larger apartments has

been very strong. In Dubai, what you typically find is that branded residences become serviced apartments. That's

not the kind of product end-users want to live in, especially if they are Dubai-based. We are resonating with end-

users in Dubai who are after a lifestyle component. Investors are keen on our 1-bedroom apartments, especially

as a second home in Dubai," observes the senior executive.

The apartments will offer views of the Emirates and Montgomerie golf courses and JLT. Buyers will receive

membership to the Banyan Tree Sanctuary Club, which entitles them to privileged access to over 40 resorts and

hotels globally.

Sweid & Sweid is offering a 30:70 payment plan. "We don't have a post-completion payment plan. We have,

instead, been working with banks who provide 20-year mortgages," he adds.

The developer intends to retain 50 per cent of the units until handover. The firm expects to generate Dh640

million in project sales value.

The Banyan Tree Residences is the developer's first residential project in Dubai. Until now, it had focused on

developing build-to-suit commercial properties.

Sweid & Sweid plans to launch 2 new projects before the year-end. "We are more about value-for-money and will

have unique components to all our projects," Sweid concludes.


Back to Index






INDIANS INVEST DH83.65 BILLION IN

DUBAI PROPERTY IN 5 YEARS Tuesday, February 27, 2018

Indian nationals, who form the largest foreign investor group in Dubai's real estate, bought properties worth

Dh83.65 billion in the last 5 years - from 2013 to 2017 - in Dubai's property sector, according to statistics compiled

by the Dubai Land Department (DLD).

They invested Dh15.6 billion in Dubai's real estate in 2017, Dh12 billion in 2016 and Dh20 billion in 2015 - their

highest in a year, according to the DLD.

"Indian nationals are the largest group of foreign investors in Dubai's real estate and as both the UAE and India

strengthen strategic relationship, we see a greater synergy and increased investment by Indian nationals in UAE,"

Dawood Al Shezawi, head of the organising committee of Dubai Property Festival, said.

The DLD recorded 69,069 real estate transactions with a total value exceeding Dh285 billion in 2017, including

Dh107 billion investment by 39,480 investors through 52,958 billion - more than 65 per cent of which is by foreign

investors.


Back to Index






MALL IN DUBAILAND TO OPEN BY END OF

2018 Tuesday, February 27, 2018

Cityland Mall is on track for opening in the fourth quarter of this year, with 60 per cent of the project's

construction having been completed as of February 2018.

Leasing at the 'nature-inspired' shopping destination has also made considerable progress, with over 50 per cent

of retail spaces being leased and committed. Construction work for the Carrefour hypermarket is nearly complete

and will be ready for handover on or before the end of March. This will be the largest hypermarket in Dubailand.

Construction work for two major entertainment anchors - Vox Cinemas and Fabyland - are progressing and will be

ready for handover within the next 6 to 8 weeks. By the end of Q2 2018, the site will be open for most mall

tenants to commence their fit-out works.

"With consistent progress on both the construction and leasing side, we look forward to launching Cityland Mall to

the public during the fourth quarter of this year. We have received strong interest from retailers and we are

working to conclude the leasing activities by adding an additional 30 per cent of leased retail space by year-end.

We anticipate the balance of the retail area to be fully committed by the end of Q1 2019," said Fahimuddin

Sharfuddin, CEO and board member of Cityland Group.


Back to Index






DEVELOPER SEEKS DISCERNING BUYERS

FOR LUXURY PALM PROJECT Monday, February 26, 2018

Omniyat Properties made headlines last year when it sold the most expensive apartment in Dubai to a GCC buyer

for Dh102 million at the One Palm by Omniyat. It beat the previous sales record for a Dubai apartment of Dh60

million.

The developer now has two more penthouses, a tad smaller, at the project for sale now. "We have 3 penthouses

in total, of which the largest has been sold. Two more smaller penthouses costing Dh88 million and Dh91 million

are available. We have seen several expressions of interest. But these things take time and we are working on it.

Interest is coming in from the GCC, New York, London, Moscow, Australia and Italy. Celebrities and athletes are

likely to come on board as well," said Mohammed Hmeid, general manager, Omniyat Properties.

The new owner has commissioned London-based design studio Elicyon to design the interior of the penthouse,

which is due for handover towards the end of the year.

"It's in the design process. The triplex penthouse has 20,000 sqft liveable area and a terrace on the top floor

spanning 10,000 sqft," said Charu Gandhi, founder and director of Elicyon.

Elicyon has now unveiled two new show apartments at the One Palm. "We are bringing the London aesthetic to

Dubai while also paying homage to Arabesque designs. There is a reference to water throughout the design. The

view was my brief," added Gandhi.

The British firm has projects such as the One Hyde Park on its resume.

The Dorchester Collection will be managing the apartments at the One Palm which includes around 94 units and

will be delivered by the end of this year.

"We have sold up to 70 per cent of the apartments. The average price per sqft at the One Palm is around Dh4,500.

Demand has been good. We have a very specific target audience for this project. The smallest unit is around 8,000

sqft. In the beginning, there was more demand for smaller units," observed Hmeid.

Omniyat has started handover of The Opus, designed by the late architect Zaha Hadid, in Business Bay. Fitout

work has started on the hotel, which will be operated by ME by Melia. There will also be serviced apartments and

office space.

"We are also working on Anwa [reached 23rd floor] in Dubai Maritime City, The Sterling in Downtown Dubai and

are doing final touches on The Pad as well. This is going to be a big year for us," Hmeid added.

Omniyat says its projects The Sterling and Langham Place are in the premium mid-market space.

However, the Omniyat executive said the developer currently had no plans for projects outside the UAE. "Our

primary focus in the short term will be on Dubai," added Hmeid.


Back to Index






DEVELOPER MAKES DUBAI DEBUT WITH A

BANG Sunday, February 25, 2018

You would expect a developer making its debut in Dubai to go down the off-plan route for sales. Not so for

Signature Developers, a boutique builder, which has just unveiled its completed project in Downtown Dubai, The

118.

The group believes customers, mostly high-net-worth buyers, need to see and feel the units before committing to

a purchase. The tower offers 28 apartments, with 26 residences taking up a floor each and two duplex

penthouses.

"There are 26 simplex apartments with each spanning 6,600sqft and 2 duplex penthouses each spanning

12,000sqft over two floors. We raised the building by 8 floors just so that every apartment offers Downtown

views," says Raju Shroff, director, Signature Developers, and CEO of Regal Group.

The developer has already sold 45 to 50 per cent of the apartments through word of mouth.

"How many developers can boast building, delivering and then selling in Dubai? We have done it. We waited for

the product to be ready so that people who understand quality could come and see it. We did not want to do off-

plan sales aggressively," says Jayant Ganwani, also CEO of Signature Developers and CEO of Lals Group.

The apartments are priced from Dh3,500 to Dh5,000 per sqft. The units cost anything from Dh23 million to a

whopping Dh65 million for the penthouse. The project's gross development value is over Dh400 million.

Luxhabitat luxury sales specialist Alexander von Sayn-Wittgenstein says: "This development is perfect for those

who enjoy privacy and are used to a certain level of service and convenience when travelling to be able to just lock

the door and know that their asset is safe and well-looked-after in their absence. Its quality is of the highest

standard, and therefore commands a higher price point than neighbouring buildings in the area. Demand has

been steady for the project."

The purchasers are mostly second home buyers from London, Romania, Spain and India. "People have started

moving in. An American celebrity has also purchased a unit with us," discloses Shroff.

The 118 also offers a driver's room for each unit, five floors of parking, 24/7 concierge and valet, and other

amenities.

"Up until now, luxury buildings featured 100 to 200 units. We offer exclusivity. Ours is not just another sqft

building," emphasises Ganwani.

Signature Developers will also complete its second project in Jumeirah Lakes Towers, titled The Residences, by the

end of this year. The Taj Group will operate the hotel component of the JLT tower.

"We have already sold 30 to 35 per cent of the 80 apartments. The average price per sqft is Dh1,600 to Dh2,100,"

informs Shroff.

The developer is already looking to acquire its next land plot. "We are looking for a market niche and will always

operate in the luxury end of the market," adds Shroff.


Back to Index






DUBAI PROPERTY BROKER ACQUIRES

MORTGAGE CONSULTANCY Thursday, March 01, 2018

Dubai-based real estate firm, Allsopp & Allsopp, has acquired PuzzleWorks, the independent mortgage

consultancy to further enhance its mortgage services.

PuzzleWorks will now become part of Allsopp & Allsopp’s Mortgage Services division, a statement said, adding

that services include assisting first time buyers, investments and buy to let mortgages, refinancing, equity release

and buying and selling.

Stuart Roe, founder of PuzzleWorks, said: “This is fantastic news for us, our clients and the business. While the

mortgage market in the UAE matures, we saw great synergies with Allsopp & Allsopp. We are excited for the

future, now we are part of such an ambitious, forward-looking company.”

Allsopp & Allsopp Mortgage Services’ market analysis has seen more people switching from renting to buying in

the last 12 months, while also identifying the need to expand its mortgage offerings.

Lewis Allsopp, CEO, said: “It is part of our on-going rapid growth strategy to acquire successful companies. We

have acquired PuzzleWorks, its contracts and its contacts. Stuart and his team share a similar vision to us, so it

was an easy decision.”

Allsopp & Allsopp, which has had a presence in the UAE since 2008, said it has seen a "meteoric rise in business"

in its years of local business.


Back to Index






DUBAI PROPERTY PRICE DECLINES SET TO

CONTINUE UNTIL 2020 Thursday, March 01, 2018

A three-year downturn in Dubai's property market will likely continue until at least 2020, Standard & Poor's said

Tuesday, citing low oil prices, the introduction of VAT and a Gulf diplomatic crisis.

A glut of housing units and weak demand were also key reasons for the decline, the credit ratings agency said in a

report.

The emirate's real estate sector has been on the slide since 2014, when crude oil prices crashed, dealing a harsh

blow to many Gulf investors.

Home prices dropped more than 15 percent between then and mid-2017.The downward trajectory continued

through to the end of last year, the S&P report said, with prices of residential units falling a further five to ten

percent.

It said the introduction of a value added tax and a prolonged crisis between Qatar and its Gulf neighbours,

including the United Arab Emirates, had also put pressure on real estate prices.

S&P called the downturn a "correction" but said the sector may start to bounce back when Dubai hosts a six-

month World's Fair in 2020.

"We believe this correction will continue at least for this year and next, before prices stabilise in 2020 at the

earliest," it said, adding that rents will likely follow the same trend.

Dubai's Expo 2020 is expected to attract up to 300,000 visitors a day when it opens in October 2020.

Experts have predicted it will also create around 300,000 new jobs and attract new residents in the emirate city,

which currently has a population of three million.

Dubai is slated to spend some $7 billion (5.7 billion euros) on infrastructure projects and $2.9 billion on the

expansion of the metro route to the exhibition between now and event's inauguration.

The property sector and related activities form around 13 percent of Dubai's gross domestic product, which was

$108 billion at the end of 2017.

Between December 2015 and June 2017, overseas investors put up as much as $41 billion to purchase property in

the emirate, said the Dubai Land Department in August.


Back to Index






ATLANTIS, THE PALM SET TO LAUNCH

WORLD'S FIRST SOCIAL MEDIA SUITE Thursday, March 01, 2018

Atlantis, The Palm has announced plans to launch the world's first social media suite in celebration of reaching

one million Facebook fans.

Launching on March 18 at the destination resort in Dubai, Facebook fans will be invited to book a free one night’s

stay in the Atlantis Fan Suite with bookings being taken every day until December 2018.

The room will offer breathtaking views of The Palm Island and will be specially adapted to suit a social media

user's every desire.

Upon check in, guests will enter their Facebook log in at the door of the suite to unlock the room and can sit back

and tune into the special Facebook Fan channel on the in-room TV.

Guests can ‘poke’ their personal butler using a special in room intercom system. For those who want to share

every moment of their stay with their friends and family, the suite also comes with a special Facebook Live

Lounge, where guests can place their handset on a stand and relax on the thumbs up shaped chair to record their

messages.

Additions extend to the bathroom, where a social media mirror is in prime position to message friends as you put

your make up on and even the amenities from bath soaps to flip flops and shaving kits, depict catchy social media

slogans.

In addition to the complimentary stay, all guests to the Atlantis Fan Suite will receive a host of additional VIP

amenities and experiences including unlimited complimentary access to The Lost Chambers Aquarium and

Europe and The Middle East’s number one waterpark, Aquaventure.

Guests will also receive Atlantis Imperial Club benefits worth over AED3,000 per day, including VIP check in,

breakfast, access to the Imperial Club lounges for daily afternoon tea and evening drinks and canapes, as well as a

personal Concierge service, Kid’s Club entry, and use of the exclusive Imperial Club Beach.

Ravini Perera, SVP, Sales, Marketing and PR, said: “It has been such an achievement to reach the one million fan

mark on Facebook and we felt now was the time to give back and say thank you to all of our fans for their

continuous support and for sharing their content with us over the years.

"Atlantis, The Palm’s social media platforms receive an average of 2,500 posts tagging the resort every week and

147,762 uses of #AtlantisThePalm every year, and the variety of imagery and videos depicting every part of our

resort in beautiful and creative ways is overwhelming. We hope that our fans enjoy the Atlantis Fan Suite as much

as we’ve enjoyed and valued their content and ongoing support."

To book a stay in the Atlantis Fan Suite, Facebook fans can visit www.atlantisfansuite.com from March 1. All

entrants must have ‘liked’ the Atlantis, The Palm Facebook page to be eligible to book a free stay in the suite.


Back to Index






DUBAI BUSINESSMAN BECOMES FIRST

RESIDENT OF TRUMP TOWER B IN PUNE Thursday, March 01, 2018

For a new Trump branded tower in India, there is a UAE connection. An Indian businessman, Ravi Pillai of RP

Group, who has extensive interests in the UAE and Saudi Arabia, has become the “first resident” of Tower B at the

Trump Towers Pune, India.

Pillai himself is no stranger to the business of real estate developments, with an ongoing project mixed-use high-

rise project in Dubai. His company’s construction arm has been associated with many high-profile contracts in the

oil and gas sector, as well as civil contracts. Pillai’s business interests also extend to the hospitality sector, but in

the southern Indian state of Kerala.

Featuring two glass facade towers of 23 storeys each, the 46 single-floor five-bedroom apartments start from

Rs150 million (Dh8.4 million). Panchshil Realty and the Trump Organisation had earlier entered into a licensing

agreement to develop Trump Towers Pune.

Source: Gulf News

Back to Index






DUBAI’S PROPERTY SALES REMAIN STUCK

IN SLOW MODE Thursday, March 01, 2018

The slow state of affairs in Dubai’s off-plan property market continues. Only about 1,200 residential units were

released in the first two months as against the quite substantial 5,048 units — from 26 projects — for the same

period last year, according to data from Reidin-GCP.

The problem for developers with off-plan projects is that they will now have to start thinking how to put in all of

their energies into launching between now and mid-May, which is when Ramadan starts and is traditionally a slow

period for real estate transactions. After that, there will be the onset of summer and developers are loath to make

any major push during that period.

This effectively leaves a window of about 70-75 days for them to get back into the off-plan launch groove. They

will also be needing some help from buyers.

For the most part, buying activity during the first two months has been relatively muted, with 1,693 ready units

transacted in the first two months as against 2,256 units same period last year. Last month’s ready sales are

pegged at 794 deals and down from the 899 in January, the Reidin-GCP data finds. On the off-plan side, January

and February’s combined volumes were 3,056 units and down 40 per cent from the 5,091 recorded last year.

“Both ready and off plan transactional activity are down significantly,” said Sameer Lakhani, Managing Director at

Global Capital Partners. “Ready transactions are down 25 per cent on a volume basis and 30 per cent on value,

while off-plan is down 40 per cent on volume basis and 50 in value.

“This year, it was expected there would be a slowdown in off-plan activity after the torrid pace of the last three

years. What we expect is there to be a gradual pickup in secondary market activity as the year progresses.”

But developers are not about to give up on off-plan this year. The small and even mid-sized ones are hoping to

see some signs of renewed buyer interest before they get on with their launches. None of them, however, want to

be in a situation where they launch and then their sales come up well short of expectations. It would also have

meant a needless waste of marketing resources.

So, for the moment, only developers who are reasonably sure they can sell even in this tight market situation are

venturing to do so. What this does is leave the field open for them to get the eye of a potential buyer. They

needn’t worry about a host of other developers trying to do the same thing with their projects, which was the case

all through 2017.

Last year, it did seem as if each week had one or the other developer announcing an off-plan launch. And even

multiple launches in the same week.

Will the slowdown in off-plan activity force developers to change tack? According to Maher Sweid, Managing

Partner at the boutique developer Sweid & Sweid, “In a challenging market, what has worked in the past need not

apply any longer. For the moment, at least, only developers who can offer some differentiation on their projects

are selling off-plan.”

Sweid & Sweid has launched sales at its Jumeirah Lake Towers based project, the Banyan Tree Residences, and

with plans to hold back 50 per cent of the stock until completion.






Lakhani agrees that buyers are now looking for something beyond the multi-year post-handover payment plans.

“Given the fact that developers have for the most part maxed out on incentives, the next phase of the market will

likely involve consolidation among private sector developers. This has already started and we expect this trend to

accelerate.”

Interestingly, some developers — the more confident among them, certainly — are also starting to raise prices,

though marginally, on off-plan. This is most apparent in the fresh round of sales at ongoing projects. But as yet,

there are no indications of developers raising selling prices because of higher VAT-related build costs

MBR City rockets up in the off-plan charts

During the first two months of 2018, the projects at Mohammad Bin Rashid (MBR) City collectively sold 373 units

to be the highest selling freehold cluster in Dubai. It was followed by Jumeirah Village Circle (337 units) and Dubai

Marina (174).

In the ready space, Dubai Marina continues its pole position with 274 units sold and with Sports City (187 units) in

second spot.

According to the latest Reidin-GCP report, off-plan sales prices are showing some signs of firming up, but in an

extremely selective manner. “A look into Business Bay and Jumeirah Village Circle reveals that initially off-plan

sales were cheaper than the ready index, causing the money flow to switch from one to the other,” the report

states. “However, there has been a reversal in this trend. Developers have justified these higher prices with post

handover payment plans and rental guarantees.”

Source: Gulf News

Back to Index






AZIZI'S 'ICONIC' DUBAI SKYSCRAPER TO BE

WORLD'S FIFTH-TALLEST Thursday, March 01, 2018

Azizi Development’s new 'iconic' skyscraper in Dubai will be the fifth-tallest in the world, according to the

company’s chairman Mirwais Azizi.

In an exclusive interview with Construction Week, Azizi said the 570 metre skyscraper close to the Sheikh Zayed

Road will be completed between 2021 and 2022.

The skyscraper project is expected to cost $816m (AED3bn), which includes the cost of buying the land.

“It is the most ambitious construction project Azizi Developments has ever embarked upon,” Azizi said. “I am

looking at every square foot of this project very seriously to ensure it finishes successfully and is delivered on

time.”

A huge plot of land adjacent to Dubai Creek has been purchased. It is currently ring-fenced by navy blue Azizi

Development hoarding. Promotional text along the boards carry words which spell out the following message:

“Azizi will change the way you live”.

Azizi described the skyscraper as a “special project”, and said he conceived the idea because he wanted to give

"something beautiful" back to Dubai.

Developer says sells out existing Azizi Riviera first phase and half of second phase on first day of Cityscape

The 122-floor building will house residential units on the first 100 floors, while the remaining 22 floors will be

reserved for a luxury hotel.

It's expected to be completed within 46 months, but the company hope to reduce the construction time, as Azizi

wants the project to be delivered somewhere between 39 and 44 months.

The architectural firm behind the high-rise building is Atkins, a company that has been involved in the design of

Dubai Metro, Five Jumeriah Village, and the iconic Burj Al Arab.

Atkins has recently been working on minor changes to the interior design of Azizi’s skyscraper. Construction of the

supertall is set to begin in the summer of 2018.

At around 570m tall, it will be among the tallest skyscrapers in Dubai. The Burj Khalifa is currently the tallest

building in the world, standing 830m high. However, the Dubai Creek Tower is reportedly set to take the Burj

Khalifa’s crown and become the emirate’s tallest-ever building upon delivery in 2020.


Back to Index






THE SILVER LINING IN A SLOW REAL ESTATE

MARKET Tuesday, February 27, 2018

A bearish market sentiment coupled with a number of major mergers and companies downsizing have had an

unfavourable effect on real estate demand in the last two years in Abu Dhabi. With substantial new inventory

putting further pressure on the market, the pattern looks set to continue. But analysts are seeing the silver lining

as developers offer more incentives to buyers.

“Rental rates and sales prices are expected to follow a similar path to 2017 with further moderate declines for Abu

Dhabi due to the continuous delivery of new supply,” says John Stevens, managing director of Asteco. “However,

while transaction activity for completed properties has slowed compared with previous years, newly launched off-

plan quality projects with attractive payment plans and discounts will continue to benefit from good levels of

demand and ultimately increase investment in real estate for 2018.”

Approximately 9,000 residential units, including 6,200 apartments and 2,800 villas and town houses are slated for

completion this year, according to Asteco’s Q4 Abu Dhabi Real Estate Report, with most projects located on Reem

Island, Al Raha Beach and Yas Island. However, based on previous years, the delivery of some of this year’s

inventory may be postponed until 2019, says Stevens.

Average apartment and villa rents went down 10 per cent and 7 per cent respectively compared with 2016, while

apartment and villa sales prices declined 10 per cent and 4 per cent year-on-year, Asteco figures show.

A tale of two cities

Meanwhile, the Propertyfinder Trends report reveals an increase in asking rents in some non-freehold

communities and relatively affordable areas with limited stock in the final half of last year. Mohammad Bin Zayed

City, Abu Dhabi’s most affordable apartment community, along with Al Mushrif and Electra Street, saw increases

of 13.8 per cent, 12.8 per cent and 8 per cent respectively.

At the other end of the spectrum, apartment rents continued to decline in the Corniche area (7.8 per cent), Al

Ghadeer (7.7 per cent), Al Raha Beach (6.6 per cent), Al Reem Island (5 per cent) and Al Bateen (4.7 per cent).

Despite a decline of 2.8 per cent, Saadiyat Island remains with the most expensive apartment rents, followed by Al

Raha Beach at Dh105 and Dh99 per square foot respectively.

Apartment rental yields in Abu Dhabi are still very good, ranging from 7-8 per cent across all communities,

according to the report. Yields remain stable for villas, with affordable villas in Hydra Village offering the best

rates at 7.5 per cent.

New islands

Figures from investment management firm JLL show a noticeable shift in supply to the new islands, which account

for more than 60 per cent of projects currently under construction in Abu Dhabi. The firm also estimates that by

2020, 12 per cent of the total residential supply in the capital will be on the new islands, compared to 8 per cent

last year.

The increasing inventory on the new islands is putting pressure on market rates. Sales prices on Al Reem Island,

the most popular area for both apartment leasing and sales, have gone down by 6-8 per cent year-on-year,






primarily because of increased off-plan listings, according to Bayut.com. Prices for studio, one- and two-bedroom

apartments on the island start at around Dh680,000, Dh1.1 million and Dh1.7 million respectively.

Meanwhile, villa listings in the Dh3-million price range on Yas Island have increased, forcing the average price to

fall from Dh3.8 million to Dh3.6 million. Conversely, Saadiyat Island had a smaller inventory of apartments last

year, resulting in an increase in demand and a rise in the overall average sales price to Dh1.9 million, according to

Bayut.com.

Other factors such as oil prices and reduced allowances also continue to play an influential role in prices.

“The reduction in employment allowances and benefits further contributed to the reduction in disposable

incomes, leading many residents to downsize and to look for more affordable options,” explains Asma Dakkak,

research manager at JLL Middle East and North Africa. “The introduction of value-added tax is expected to further

impact purchasing power, at least during the transitory phase of adjustment.”

The silver lining

However, on the sales front, prices adjust lower in weaker market conditions, creating opportune investment

options for potential buyers, explains Dakkak. And with oil prices touching $70 (Dh257) per barrel, Abu Dhabi real

estate developer Aldar Properties says it is confident about the possibilities for the year ahead, particularly if a

resurgent oil price leads to expansionary fiscal policy that can further propel the economy. The increase in

government receipts and spending, as a result of VAT, could also contribute to growth.

“Popular sentiment is that prices are at or very close to the bottom of the cycle and will increase in the lead-up to

the World Expo 2020,” says Lukman Hajje, chief commercial officer of Propertyfinder Group. “There will also be an

increase in product offerings in affordable emerging communities in the sub-Dh1 million and sub-Dh1,000 per

square foot segments, which were historically underserved during earlier construction booms.”

Michael Lahyani, Propertyfinder Group CEO, adds: “Falling prices, as we’ve seen, make buying more feasible for a

larger percentage of the population.”

Experts generally expect the market to rebound sooner than later as the product range diversifies and property

ownership becomes more accessible. “As more and more off-plan projects are completed, handed over and put

on the secondary market, we can expect prices to continue attracting investors, while landlords will have to stay

competitive to entice potential tenants,” says Haider Ali Khan, CEO of Bayut.com. “In the long run, as the market

and the broader economy move along a trajectory of diversification and maturity, the opportunity for developers

and sellers to capitalise on their investment remains strong.”

Risk of oversupply

Experts reject the notion that Abu Dhabi could become oversaturated, given the emirate’s population size and

anticipated growth. “Those in shared rental accommodation suddenly can consider renting their own place,” says

Hajje. “Long-term renters are buying. Transactions are up. An increase or decrease in property prices matter less

than a decrease in transaction volumes.”

Although the inventory is seeing substantial growth, certain properties are selling very quickly, indicating another

important trend — a growing demand for value.

“When you have good projects that sell fairly fast after launch, this points to a market demand for top-quality

products,” says Khan. “What you also notice is more advertising by developers to reach out to a broader audience

to communicate at a more personal level with the end users. This makes complete sense because the end users

today are making more informed decisions and brands need to engage with them.”

Source: Gulf News

Back to Index






ALDAR APPOINTS DAVID DUDLEY TO KEY

POSITION Monday, February 26, 2018

Aldar Properties announced the appointment of David Dudley as executive director for Investments &

Partnerships.

In a statement on Monday, Aldar said Dudley has over 20 years worth of real estate experience across the globe,

including nine years spent in the Middle East & North Africa (Mena) region as director of operations, executing

multi-disciplinary assignments including development advisory and transactions, investment transactions, leasing,

valuations and strategy. He worked in Abu Dhabi, Saudi Arabia and Egypt.

“David brings a wealth of experience that will be invaluable to Aldar as we embark upon bold plans for future

growth,” Talal Al Dhiyebi, chief executive officer of the firm, said.

Source: Gulf News

Back to Index






NEW AREAS GET POPULAR AMONG ABU

DHABI RESIDENTS Wednesday, February 28, 2018

Madinat Zayed was the most popular area among Abu Dhabi residents in 2017, according to ServiceMarket, a

marketplace for moving and house services. The area received 14.46 per cent of all move-in requests.

Other areas that people moved into were Reem Island, Khalifa City, Al Khalidiyah and the outskirts of Abu Dhabi.

Areas like Al Reef, Mussafah and Al Raha Beach were other popular areas that witnessed most move-in requests.

While established and densely-populated areas such as Madinat Zayed and Al Khalidiyah are still very popular,

newly developed contenders such as Reem Island and Khalifa City are also gaining in popularity. A lot of people

are also moving to the outskirts of Abu Dhabi, which are communities beyond Al Reef on the road to Dubai. These

areas have become popular because they offer lower rents.

Madinat Zayed, Khalifa City, Reem Island and Al Khalidiyah also experienced the most moving-out activity. This

could be because people tend to move a lot between these popular areas since they have many residential

buildings. In addition, those who are looking for lower rents but don't want to move their family away from the

area where they're already settled often choose to move to another home in the same area. Around a third of

Abu Dhabi residents just move from one residential building to another in the same area.

Reasons behind moving

Madinat Zayed holds the top position and Al Khalidiyah is also in the top 5 list because both these areas are

established and offer many amenities like an abundance of residential buildings, shops, schools and recreational

facilities. They are the business hubs of Abu Dhabi.

However, since newly developed areas such as Reem Island, Khalifa City and outskirts of Abu Dhabi have more

houses with gardens and compounds with large pools, they are now very close to the top position. Another

reason could be that people are moving to these suburbs of Abu Dhabi to avoid traffic and congestion. People

who work in Dubai prefer these areas as they can save an hour on their daily commute.


Back to Index






SHARJAH AND NETHERLANDS TO BOLSTER

TRADE TIES AND INVESTMENT Sunday, February 25, 2018

Towards the end of last week, Sharjah and the Netherlands agreed to strengthen their trade ties through

“positive, practical steps,” Sharjah’s foreign investment authority said on Sunday. Members of Invest in Sharjah

and the Netherlands and BeNeLux Business Councils said they would pursue viable investment opportunities for

Dutch businesses to either grow or enter the emirate. The Dutch trade delegation expressed a desire to increase

its business presence in the emirate, which currently stands at 156 companies — 87 of which are in free zones,

the statement said.

Source: Gulf News

Back to Index






SALES SET TO LAUNCH AT LUXURY ABU

DHABI WATERFRONT PROJECT Thursday, March 01, 2018

Al Fahid Property Development, the developer behind an Abu Dhabi waterfront residential development, has

announced that it will launch sales of phase one of the project on March 3.

Named Al Marsa, phase one of the project is slated for handover by the third quarter of 2023 and will feature 301

luxury villas and nine apartment buildings.

The fully integrated Al Fahid development is located between Yas Island and Saadiyat Island.

Once completed, the entire five-phase, 3.2 million-square-metre project will have the capacity to accommodate

more than 11,000 residents, with Al Marsa accounting for nearly half – about 4,600.

Saeed Eid Al Ghafli, chairman of Al Fahid Property Development, said: “Poised to become Abu Dhabi’s first

authentic luxury waterfront destination, the Al Fahid development will go a long way in attracting investments to

the UAE capital.

"The launch of sales reinforces our commitment to enhancing the city’s lifestyle offering.”

The project will contribute to creating around 1,500 new job opportunities over the next three years, he added.

Set to span 1.1 million square metres, Al Marsa is scheduled for handover in two stages. The 464,000-square-

metre stage one will feature 301 villas.

Stage two of Al Marsa will include nine apartment buildings overlooking the marina, with five towers in the

middle, flanked by two on each side. The buildings will comprise a total of 671 one- to four-bedroom apartments

including 15 townhouses.

A luxury marina, with 85 berths, will also boast 88,000 square feet of retail and F&B space.

Al Fahid will also feature walking and bicycle paths, beaches, canals, a promenade, a beach club, a mosque, a civic

centre, a nursery, and a water sports centre.


Back to Index






FIVE GLOBAL SKI RESORTS THAT MAKE A

GOOD INVESTMENT Wednesday, February 28, 2018

With some 400 million annual ski visits worldwide, winter sport is a major global industry, while the ski resorts

that serve it are home to some of the world’s most desirable residential property markets. However, with climate

change advancing, the ski industry faces a challenging future, forcing ski towns to adapt by investing in

snowmaking technologies and diversifying heavily into new activities.

This is according to recent research by Savills, revealing which global ski resorts best counter the emerging

difficulties and thus provide solid property investment opportunities to overseas buyers.

Where to buy?

High-altitude, low-temperature resorts are best placed to meet the rising challenges of climate change. The

resorts featured here are established and well known in the Alps and North America and have been picked for

comparison with different resorts and countries.

1. Zermatt, Switzerland

Zermatt heads the Savills Resilience Index (SRI). As a high-altitude, north-facing resort, Zermatt benefits from long,

reliable seasons and also offers glacier skiing.

Another noteworthy resort in Switzerland is Crans-Montana, which is actively promoting itself as a “city in the

mountains”. Alongside established dual-season activities, the resort is investing heavily in new ski infrastructure, a

new ice rink, restaurants, a medical centre and a recently opened British International boarding school.

Verbier, on the other hand, maintains its long-term investability. With the recent addition of the prestigious W

Hotel and potential plans for a further world-class hotel, the prime resort will maintain its premium prices.

Good to know: Under the peculiarities of cantonal and communal legislation, only the Swiss can buy in Zermatt;

non-Swiss buyers tend to gravitate towards more tourist-friendly resorts such as Crans-Montana or Verbier. If you

are looking for a combination of lifestyle and rental return, ease of access to an airport and dual seasonality is

ever important.

2. Vail, US

Vail Colorado USA ski resort

This large resort ranks second on the SRI. It is at altitude and has enjoyed bumper snowfall in recent years. Vail

has seen annual price growth of 10 per cent thanks to low supply and a strong domestic demand.

Furthermore, Vail’s purchase of the Canadian resort Whistler has meant joint marketing across borders and

joined-up resort strategies. This multi-resort approach means that weather risk is spread too.

3. Obertauern, Austria

Obertauern Austria ski resort

This high-altitude resort benefits from low temperatures, supporting reliable spring snow cover. It ranks seventh

on the SRI. Obertauern is one of the more affordable global ski resorts — investors are looking at around

€400,000 (Dh1.8 million) for a two-bedroom apartment.






4. Whistler Blackcomb, Canada

Whistler-Blackcomb-Canada

North America’s largest ski resort, Whistler Blackcomb has averaged over 800cm of snowfall per year for the last

eight years. It ranks 11th on the SRI.

A bull run in Canada’s national real estate markets appears to be slowing in major cities following the introduction

of cooling measures. However, supply-demand imbalances continue to fuel growth in resorts such as Whistler

Blackcomb.

5. Tignes, France

Tignes is one of Europe’s highest resorts and one of the most dependable ski destinations in France, also offering

summer glacier skiing. It features on 16th place in the SRI.

There are plans to invest €62 million in a 400m-long indoor slope to enable whole-year skiing. It is part of the

Espace Killy ski area, which includes neighbouring Val-d’Isère, where a €200-million project at the base of the

resort was announced last year.

Snowsure and high altitude, Val-d’Isère is a likeable resort with a unique atmosphere that is impossible to

replicate. Val-d’Isère has long been at the forefront of infrastructure advances and sits at the cutting edge of ski

lift technology.

A shortage of land availability is helping to sustain prices in both Courchevel and Meribel. The Aquamotion water

park that opened in 2016 has been well Top 10 most expensive global ski resortsreceived and adds to the

seasonal variety of available activities. Courchevel very much retains its position as the king of French resorts, at

least when it comes to property prices.

The Savills ski conditions resilience index ranks major global ski resorts using five metrics to measure the quality

and reliability of a resort’s conditions, and its resilience against climate change. The five metrics assess snowfall,

reliability, season length, altitude and temperature.

Source: Gulf News

Back to Index






LIVERPOOL: A BUY-TO-LET HAVEN Tuesday, February 27, 2018

While London frequently tops the list of desired property markets in the UK for overseas investors, recently the

attention has shifted to flourishing regional cities like Liverpool. With the north-western city’s thriving economy,

booming tourism industry and multitude of multimillion-pound regeneration projects in the pipeline, Liverpool is

becoming an attractive destination for investors.

A major contributor to Liverpool’s growth has been the Northern Powerhouse initiative, which was originally

created in 2015 to encourage greater collaboration between the major cities of the north, with new and improved

transport links and investment into science and innovation, education, the arts and technology.

As a result of this initiative, the Liverpool economy has boomed, catalysing the growth of the property market,

driving up rental yields and house prices.

Liverpool fast facts

In addition to this historic initiative, a number of other factors are attracting UAE investors to Liverpool’s thriving

property market.

Economic and employment growth

Liverpool’s economy is currently worth £29.5 billion (Dh151.97 billion) and is developing at a faster pace than the

rest of the UK. The city is part of the UK’s second-largest regional economy and is home to 252,000 businesses,

including global firms like Maersk, Barclays, Wealth, Jaguar, Land Rover, Unilever, Santander, KPMG, etc. Diverse

industries and expanding employment are also producing a draw, with over 100,000 new jobs expected to be

created by 2040.

Bolstering its economy, the city is also the UK’s largest wealth management centre outside London, handling

more than £13 billion in assets. Additionally, Liverpool has been a globally recognised tourism hub, with over 58

million visitors flocking to Liverpool every year and a tourism sector worth £3.8 million. Both the job and tourism

markets can only grow with the increase in labour, and with the extended workforce there is a higher demand for

housing, driving prices up.

Regeneration and investment

A key factor driving Liverpool’s rental market is the increasing number of upcoming developments. The city has

been steadily regenerating for over three decades, and with huge commercial investment in projects such as the

£1-billion retail district Liverpool One, and the Baltic Triangle’s Cains Brewery Village, a 1-million-sq-ft, £150-million

leisure and retail development with brewery, boutique hotel, shops and food hall set to contribute £25 million

each year to the local economy.

Liverpool has been surging ahead as a business, cultural and tourism hub.

One area that is garnering significant interest is Liverpool Waters, a £5-billion plan to transform Liverpool’s

Northern Docks into a high-quality waterfront quarter of residential, commercial and leisure space for Liverpool’s

city centre.

Plans for a new cruise liner terminal, public park and, at the zone’s northern end, a new stadium for Premier

League football team, Everton FC, alongside new waterside offices, high-rise residential towers, restaurants and

hotels will mop up demand for new places to work, play and live as Liverpool’s economy continues its 15-year run

of unbroken growth.






Sales and rental markets

Since 2015, Liverpool house prices have gone up by 14 per cent (land registry) and this property price growth is

expected to continue with a 17.5 per cent growth forecast between 2018 and 2021.

Liverpool rental yields are some of the highest in the UK at 6.2 per cent on average. This has led to the city being

crowned one of the best buy-to-let cities in the UK by LendInvest.

Liverpool rental yields are some of the highest in the UK at 6.2 per cent on average. This has led to the city being

crowned one of the best buy-to-let cities in the UK by LendInvest. For example, IP Global’s The Levels, a boutique

residence located in the grade II-listed Tower Building, sold out within days of launch in January last year.

Liverpool’s future is bright as rental growth is on an upward trajectory with 14.7 per cent growth predicted from

2018-21. Private renting is becoming popular, with two-thirds of homes in the city centre privately rented. A

growing number of young professionals are driving up demand for high-quality housing, too, particularly in

established city centre areas and on the waterfront.

Quay Central

The UK has always been a popular market for our investors, but outer London and regional cities such as

Liverpool have significantly become the new investment hotspot in the UK. This month we have successfully

launched Quay Central, our premium development set in Liverpool Water’s entertainment, business and leisure

hub, Central Docks, which we anticipate will be popular among our UAE investors.

Liverpool is a rising star in the UK property market. With limited supply and rapidly increasing demand for

superior housing in the heart of the city, property investors would be prudent to consider opportunities here.

Source: Gulf News

Back to Index






SENIOR CARILLION EXECUTIVE SOLD $1.1M

WORTH OF STOCKS BEFORE COMPANY'S

COLLAPSE Monday, February 26, 2018

Carillion's former finance director sold shares in the UK construction company worth about £776,000 ($1.1

million) months before it imploded, according to parliamentary committees.

Richard Adam cashed in shares for £534,000 in March 2017, less than three months after he retired, and then

sold long-term incentive awards in May last year on the day they vested for £242,000, the committees said, citing

a letter from the former Carillion official.

Carillion’s collapse in January left behind debts of about 1.6 billion pounds and triggered a debate in Britain about

the extent to which the government relies on businesses to provide public services and build infrastructure

including schools, libraries and roads.

The company’s fall gathered pace last July after a series of construction contracts soured. Three profit warnings in

about half a year caused its shares to plummet.

Zafar Khan became finance director in late 2016, replacing Adam, but he left the company several months later.

The work and pensions committee and the business, energy and industrial strategy committee are publishing

responses from Adam and Khan following evidence given to Parliament earlier this month.


Back to Index






INVESTMENT IN HONG KONG'S

COMMERCIAL PROPERTY MARKET HITS

NEW HIGHS IN JANUARY Monday, February 26, 2018

According to JLL's latest Property Market Monitor, Hong Kong's property investment market continued to hit new

highs in January 2018, riding on strong global investor interest.

A total of four en-bloc office buildings were sold for a total consideration of HKD 14.8 billion in January, 17%

higher than a year ago.

The en-bloc sale of 18 King Wah Road--a new Grade A office development--drew the most attention, setting a new

record for the largest office transaction in Hong Kong East.

In the leasing market, decentralization remained as a key theme playing out among office tenants. Leasing activity

was focused on Hong Kong East and Kowloon East, where tenant decentralization and consolidation

requirements underpinned demand. Net take-up in the overall market amounted to 209,900 sq. ft in January. In

Central, net absorption reached 33,000 sq. ft as several tenants sought room for expansion.

Alex Barnes, Head of Markets at JLL reports, "The widening gap between rents in Central and emerging core

business districts will add momentum to decentralization. With the support of the outbound growth of Mainland

Chinese companies, we expect Hong Kong's Grade A office market rentals to continue to trend higher, rising by up

to 5% in 2018. Central will continue to outperform the overall market as demand competes for the pockets of

space that exist."

Office rents in Central advanced by 0.7% m-o-m in January on the back of a tightened vacancy environment. Rents

in Hong Kong East grew by 0.8% m-o-m, driven largely by increasing demand at the top-end of the market.

Denis Ma, Head of Research at JLL said, "The strong pricing achieved in the government sale of the Murray Road

Car Park in May last year is now starting to permeate through the broader office market as investors reset

benchmarks. Moreover, the record high prices being set in the market are no longer relying solely on PRC buyers

with local money now also flowing into the market. Coupled with a tight occupier market, we expect capital values

to rise a further 5-10% in 2018 even with interest rates set to rise further."

In the city's residential market, sentiment remained upbeat buttressed by record high land sale for government

sites in Kowloon as well as strong gains in the local stock market. Capital values of mass residential properties

inched up by a further 0.9% m-o-m in January following an increase of 1.3% m-o-m the previous month.

Source: World Property Journal

Back to Index






PENDING HOME SALES IN U.S. STUMBLE

4.7 PERCENT IN JANUARY Thursday, March 01, 2018

According to the National Association of Realtors, after seeing a modest three-month rise in activity, pending

home sales cooled considerably in January to their lowest level in over three years. All major regions experienced

monthly and annual declines in contract signings last month.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, fell 4.7 percent to 104.6 in

January from a downwardly revised 109.8 in December 2017. After last month's retreat, the index is now 3.8

percent below a year ago and at its lowest level since October 2014 (104.1).

Lawrence Yun, NAR chief economist, says pending sales took a noticeable step back to start 2018. "The economy

is in great shape, most local job markets are very strong and incomes are slowly rising, but there's little doubt last

month's retreat in contract signings occurred because of woefully low supply levels and the sudden increase in

mortgage rates," said Yun. "The lower end of the market continues to feel the brunt of these supply and

affordability impediments. With the cost of buying a home getting more expensive and not enough inventory,

some prospective buyers are either waiting until listings increase come spring or now having to delay their search

entirely to save up for a larger down payment."

Added Yun, "Even though contract signings were down, Realtors indicated that buyer traffic in most areas was up

January compared to a year ago. The exception was likely in the Northeast, where the frigid cold snap the first two

weeks of the month may have contributed some to the region's large decline."

The number of available listings at the end of January was at an all-time low for the month and a startling 9.5

percent below a year ago. In addition to new home construction making progress closer to its historical annual

average of 1.5 million starts, Yun believes that two other factors must start occurring to alleviate the

excruciatingly low supply levels that are slowing sales: institutional investors beginning to unload their portfolio of

single-family properties back onto the market, and more hesitant homeowners deciding to sell.

"As new multi-family supply catches up with demand and slows rents, some large investors may begin putting

their holdings of affordable single-family homes up for sale, which would be great news, particularly for first-time

buyers," said Yun. "Furthermore, sellers last year typically stayed in their home for 10 years before selling (an all-

time high) 2; although higher mortgage rates will likely discourage some homeowners from wanting a new home

with a higher rate, there are possibly many pent-up sellers who may look to finally trade-up or move down this

year."

In 2018, Yun forecasts for existing-home sales to be around 5.50 million - roughly unchanged from 2017 (5.51

million). The national median existing-home price this year is expected to increase around 2.7 percent. In 2017,

existing sales increased 1.1 percent and prices rose 5.8 percent. The PHSI in the Northeast dropped 9.0 percent to

87.0 in January, and is now 12.1 percent below a year ago. In the Midwest the index fell 6.6 percent to 98.2 in

January, and is now 4.1 percent lower than January 2017. Pending home sales in the South declined 3.9 percent to

an index of 121.9 in January, and are now 1.1 percent lower than last January. The index in the West decreased 1.2

percent in January to 97.9, and is 2.5 percent below a year ago.


Back to Index






SOUTH AFRICA BRACES FOR ECONOMIC

FALLOUT OF LAND NATIONALISATION

MOVE Saturday, March 03, 2018

Land expropriation without compensation in South Africa moved a step closer as the country's parliament

adopted a motion last week to make changes to existing legislation that would put the contentious plan into

effect.

The ruling African National Congress (ANC), together with opposition party the Economic Freedom Fighters (who

sponsored the bill), voted to change the country's constitution to reduce property rights. The move has sparked

fierce debate and could widened the racial divide in the top Industrialised African economy.

EFF leader Julius Malema told reporters shortly after the vote that the push is for all the land, including farms and

urban properties. "Every land in South Africa should be expropriated without compensation," he said. "The state

should be the custodian of the land."

That has put in doubt the fate of outstanding private property market mortgages, which local banking groups

have estimated to be valued at 160 billion rand ($13.5bn). About 145bn rand in loans is owed by the farming

sector, of which white South Africans account for 72 per cent, government audits show.

South African has struggled with muted growth over the past five years, brought about in part by uncertainty over

key economic policies. The World Bank projects the country's GDP to grow 1.1 per cent this year from near zero in

2017. Unemployment is now north of 26 per cent, according to government statistics, adding pressure to the

ruling party that must face elections in 2019. For the banking sector that underpins the economy, full

nationalisation could prove to be a massive hit, analysts said.

Although details of the nationalisation plan are thin, the EFF's Mr Malema has touted a lease-rental model that

would see existing homeowners become state tenants. This system is already in place in a number of African

countries including Mozambique, which only allows a 99-year lease on farmland, instead of outright private

ownership.

"No one is going to lose his or her house, no one is going to lose his or her flat, no one is going to lose his or her

factory or industry. All we are saying is they will not have the ownership of the land," Mr Malema said.

Last week's vote comes as South Africa's new president Cyril Ramaphosa has barely settled into the office. He is is

widely seen as business friendly and a free marketer, so the motion caught many by surprise. However his

priority, perhaps, is to lead the ANC - already wounded by years of corruption scandals under his predecessor

Jacob Zuma - into next year's polls, according to analysts.

While the EFF gained only 6 per cent in the last elections, its vocal populism has eroded support for the ANC,

particularly in urban areas. The joint motion on land may be an attempt to regain some of the lost ground among

the vote bank blunt EFF's criticism of ANC, party sources said.

Still, the door to full nationalisation of all property is now open, which has made many in the country of 55 million

nervous. A growing black middle class that has embraced the property market in urban areas especially will

particularly be affected.






"Why must government own land on behalf of [South African] blacks?" said Sihle Ngobese, a political activist with

the official opposition Democratic Alliance, a party that supports free markets. "The EFF and ANC want all land to

be owned by government. So, they want [South African] blacks to be permanent renters of their own land."

Tribal leaders in the country have also expressed alarm at the idea. Goodwill Zwelithini, king of the Zulus (the

country's largest ethnic group) said he is prepared to 'fight' attempts to seize the tribe's land. The king oversees

nearly 3 million hectares of property in a tribal trust that the government wants to parcel off to individual tenant

farmers who now live there with the monarch's permission.

"Land cannot be removed from the traditional leadership," King Zwelithini said. "In fact‚ the land is like the soul of

the body of traditional leadership. We will never allow [it]‚ not for one day."

For now, nothing much will change, as property laws remain in place. Last week's motion requires a parliamentary

committee to investigate the ramifications of a constitutional change. This will take at least six months, before the

committee reports its findings to the parliament. Further reviews are likely, which could push the matter well

beyond national elections, due to be held in the first quarter of 2019.

Bond and equity markets have also shown little reaction so far. South Africa's rand is still trading below the key

level of 12 to the dollar that it held prior to the motion.

As yet, the ANC's view on what comes next should the constitution be changed is vague.

Enoch Godongwana, the ANC head of economic transformation, told the Eastern Province daily Herald that few

details had been hammered out by the party so far.

“Anyone who says they fully understand what this whole process fully means is lying," he said. “I myself don’t fully

understand it, which is why there’s this consultative process under way.”


Back to Index






COMMERCIAL INVESTMENT ACTIVITY IN

U.S. TO CONTINUE TO THRIVE IN 2018 Friday, March 02, 2018

According to CBRE's newly released Americas Investor Intentions Survey 2018, a prolonged period of U.S.

economic growth, as well as tax cuts and favorable regulatory changes, means that commercial real estate

investors are more positive going into 2018 than they were at the start of last year.

The 2018 survey results reveal that the largest share (45%) of investors plan to increase their level of acquisitions

in the Americas compared with last year. This pick-up in investor appetite marks a reversal from the downward or

flat trend recorded in the prior two surveys. In total, 88% of investors plan to either maintain or increase spending

in 2018--up from 83% in 2017. Just 12% of investors plan to reduce their purchases in 2018, lower than the 17% in

2017.

Investors see a "global economic shock" that undermines occupier demand (30%) as the greatest potential threat

in 2018, slightly more than last year (22%). In contrast, investors are less worried about interest rates rising more

quickly than expected this year (16% in 2018 vs. 21% in 2017).

"Despite the possibility of escalating interest rates, the vast majority of investors intend to acquire assets in the

Americas in 2018. Risk tolerance is expected to remain unchanged, but investors' search for yield and asset

diversification is pushing them toward value-add assets, secondary markets and "alternatives" in 2018," said Brian

McAuliffe, President, Institutional Properties, Capital Markets, CBRE.

"Investors anticipate that the occupier trends with the greatest impact on real estate investments are last-mile

logistics, flexible space, and less reliance on traditional office and retail. Investors are assessing the risk of high

proportions of coworking space within a property on its long-term liquidity and residual value. Sustainability

continues to factor into decision-making but is not a top priority for investors," added Mr. McAuliffe.

U.S. gateway cities continue to command considerable interest. Los Angeles/Southern California is the top-ranked

metro for property purchases, followed by Dallas/Ft. Worth and New York. As investors maintain their pursuit of

good secondary assets, large upward shifts brought Nashville, Portland, and Tampa/St. Petersburg into the top

10.

Among the five different asset strategies--core, good secondary, value-add, opportunistic and distressed--value-

add remains the preferred strategy (34%), but is down from 2017's level (41%). Investor appetite for good

secondary assets increased for the fourth consecutive year, as the supply of core assets diminishes and investors

broaden their search for yield. Institutional investors--comprising sovereign wealth funds, insurance companies,

and pension funds--are more interested in core assets than are other types of investors, with 33% indicating core

as their preferred strategy vs. 20% of overall investors.

"Given the declining return environment, it is no surprise that investors are racing to find the next Seattle by

increasing their focus on the higher-yield potential of high-growth secondary markets. Investors are also moving

further out on the risk spectrum to look for more opportunistic equity deals. Markets like Tampa Bay, Nashville,

Montreal and Portland all rose substantially in investor interest this year, not only because of superior current

yields than the majors, but for the single most important factor of all: higher projected office-using job growth.

Investing in markets with the fastest job growth can lead to greater NOI growth and additional cap rate

compression even in a rising interest rate environment," said Spencer Levy, Head of Research, Americas, CBRE.






Industrial is increasingly the preferred property type, cited by 50% of investors as the most attractive for

investment in 2018, up from 38% in 2017. Multifamily (20%) and office (14%) are the next attractive property

types, though their shares decreased from last year. Despite competition from e-commerce, the retail sector

improved modestly from last year, attracting 10% of investors compared to 8% in 2017.

Investor interest in "alternatives" strengthened across most sectors. Real estate debt (37%) is the number one

alternative currently held by most investors and will be targeted most actively this year. Student housing, senior

housing, and healthcare are the next most common alternatives, each held by roughly 20% of investors.

The breakdown of anticipated capital deployment amounts is roughly comparable to 2017, although expectations

for larger purchases in the $2 to 5 billion range are noticeably higher (14% in 2018 vs. 9% in 2017). Institutional

investors have different expectations than the average investor, with half intending to deploy more than $1 billion

of capital this year, and one-third intending to deploy more than $2 billion (compared to 28% and 18%,

respectively, for other investor types).


Back to Index






With over 30 years of Middle East experience,

Asteco’s Valuation & Advisory Services

Team brings together a group of the Gulf’s

leading real estate experts.

Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai,

Northern Emirates, Qatar, and the Kingdom of Saudi

Arabia not only provides a deep understanding of the local

markets but also enables us to undertake large

instructions where we can quickly apply resources to meet

clients requirements.

Our breadth of experience across all the main property

sectors is underpinned by our sales, leasing and

investment teams transacting in the market and a wealth

of research that supports our decision-making.

John Allen BSc MRICS

Director, Valuation & Advisory

+971 4 403 7777

[email protected]

Jenny Weidling BA (Hons)

Manager – Research and Advisory

+971 4 403 7789

[email protected]

VALUATION & ADVISORY

Our professional advisory services are conducted by

suitably qualified personnel all of whom have had

extensive real estate experience within the Middle

East and internationally.

Our valuations are carried out in accordance with the

Royal Institution of Chartered Surveyors (RICS) and

International Valuation Standards (IVS) and are

undertaken by appropriately qualified valuers with

extensive local experience.

The Professional Services Asteco conducts throughout

the region include:

• Consultancy and Advisory Services

• Market Research

• Valuation Services

SALES

Asteco has established a large regional property sales

division with representatives based in UAE, Saudi

Arabia, Qatar and Jordan.

Our sales teams have extensive experience in the

negotiation and sale of a variety of assets.

LEASING

Asteco has been instrumental in the leasing of many

high-profile developments across the GCC.

ASSET MANAGEMENT

Asteco provides comprehensive asset management

services to all property owners, whether a single unit

(IPM) or a regional mixed use portfolio. Our focus is

on maximising value for our Clients.

OWNER ASSOCIATION

Asteco has the experience, systems, procedures and

manuals in place to provide streamlined

comprehensive Association Management and

Consultancy Services to residential, commercial and

mixed use communities throughout the GCC Region.

SALES MANAGEMENT

Our Sales Management services are comprehensive

and encompass everything required for the successful

completion and handover of units to individual unit

owners.

NEWS BRIEF 09 - Asteco Property ManagementDAMAC AWARDS DH600M CONTRACT FOR AYKON CITY TOWER DEPA...

Documents

Transcript of NEWS BRIEF 09 - Asteco Property ManagementDAMAC AWARDS DH600M CONTRACT FOR AYKON CITY TOWER DEPA...