NEWS BRIEF 15 - Asteco Property Management€¦ · administration, management, bookings and...

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IN THE MIDDLE EAST FOR 30 YEARS

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

NEWS BRIEF 15 SUNDAY 12 April 2015





REAL ESTATE NEWS

UAE LOW COST HOUSING IS VITAL FOR UAE COMMUNITIES

UAE PLAYS ITS PART IN SEYCHELLES’ BURNING AMBITIONS SEYCHELLES TOURISM BOARD PREDICTS 10% RISE IN UAE VISITORS THIS

YEAR LONDON PROPERTY TALKS LIFT DAMAC SHARE PRICE

DUBAI

DUBAI’S OFFICE MARKET PUTS ON A CONSISTENT SHOW

INVESTING IN DUBAI'S HOSPITALITY A SOUND CHOICE IF IT’S UPSCALE, IT HAS TO BE ON THE PALM

ITS DUBAI’S MID-TIER RESIDENTIAL LOCATIONS SEEING RENTAL GAINS TOP 10 VILLA DEALS IN DUBAI: DH60 MILLION IN EMIRATES HILLS TOPS

LIST 'DUBAI PROPERTY REPORT': RENT-FREE PERIODS LIKELY

DUBAI'S WORLD'S TALLEST TWISTED TOWER IN TOP MILLION-DOLLAR DEALS

DUBAI HOUSE PRICES SLIP OVER FIRST QUARTER, RENTS STABLE AS NEW HOMES ARRIVES

INVESTMENT CORPORATION OF DUBAI TAKES STAKE IN LUXURY US AND SOUTH AFRICAN HOTELS

SEVEN TIDES PALM JUMEIRAH PROJECTS TO BE HANDED OVER IN FIRST QUARTER OF NEXT YEAR

FIRST PHASE OF TOWN SQUARE ‘VALUE’ APARTMENTS LAUNCHED IN DUBAI DUBAI METRO'S 'ROUTE 2020' TO SERVE DISCOVERY GARDENS, FURJAN, JUMEIRAH GOLF ESTATE, DIP

ITS DUBAI’S MID-TIER RESIDENTIAL LOCATIONS SEEING RENTAL GAINS DUBAI SETS EYE ON 'MINI WORLD' PARK AHEAD OF EXPO 2020

ABU DHABI

WHY PROPERTY IN ABU DHABI IS A GREAT INVESTMENT REEM ISLAND GETS 906 NEW APARTMENTS WITH HYDRA AVENUE FIRST

PHASE COMPLETED ABU DHABI AIRPORTS APPOINTS NEW CEO

RENT INCREASES IN ABU DHABI LEAD TO CALL FOR NEW CAP

NORTHERN EMIRATES AJMAN’S AL ZORAH TURN TO TEST INVESTOR APPETITE





DUBAI’S OFFICE MARKET PUTS ON A

CONSISTENT SHOW

FRIDAY 10 APRIL 2015

Unlike with residential, where there have been bouts of volatility in recent months, Dubai’s office realty seems to be having a better time of it helped by stability in demand as well as steady supply of new stock coming in. At a broader level, it also means that leasing trends for

offices have not been impacted by concerns that the Dubai/UAE economy could be in for a rougher ride from weak oil prices.

The overall office stock in Dubai at the end of the first quarter is estimated at 8.1 million square metres, including the 40,000 square metres at Dubai Design District that got delivered during this period, according to estimates by CBRE. Through the whole of last year, the new

deliveries were around 420,000 square metres.

Demand for offices premises is running at a high among small and mid-sized businesses, while

Dubai’s free zones have also been recording consistent demand as and when new space becomes available.

“There wasn’t a major correction in Dubai’s office property market … all through the last two or

three quarters it’s been recording steady movements rather than sharp ups or downs,” said Samir Munshi, Managing Director of Silver Heights, a real estate investment and brokerage

firm. “For instance, at the two office towers (Oxford and Empire Heights) in Business Bay, occupancy has gone beyond the 50 per cent mark in the last 12 months.

“The demand we are seeing are for spaces of 1,200-1,500 square feet and not for entire floor

spaces. The rental rates are for Dh80-Dh100 a square foot.”

On a year-on-year basis, rental increases for offices in Dubai were in the range of 3 per cent,

according to the CBRE report. But the consultancy does sound a cautionary note on short-term forecasts, stating that negotiations between landlords and tenants could take longer than is the norm. The latter might be in a better position to drive hard bargains or win over key

commitments/incentives from landlords. Moreover, there is also the possibility that the head offices in Europe and the US — if economic circumstances were to turn tepid — might take

longer to clear the relocations of their regional subsidiaries.

A lot will also depend on the internal dynamics of Dubai’s office property market, which “differ greatly depending on whether tenants are required to trade within one of the specialist zones

like DIFC or Tecom or trade onshore,” said Simon Townsend, Head of Capital Markets at DTZ. “In these zones the supply of office space is tight, especially in the core DIFC around the Gate,

Gate precinct and Gate village where space is considered at a premium.

“Then you have the onshore traditional zones, which in themselves have differing dynamics …

prime Shaikh Zayed Road close to DIFC and Emirates Towers retains a limited supply and again tenants do not have the same bargaining power as say in some of the emerging Shaikh





Zayed Road locations around Barsha. In Barsha, we are seeing increasing rent-free and, in some instances, fit-out contributions being offered by landlords.”

It is interesting that the bulk of new off-plan launches since the Dubai property market staged a comeback in 2012 were for residential. Most developers are still hesitant to take on new

office projects — unless there is a mixed-use element to it via a hotel or serviced apartment. This stems from concerns that way too many office projects — launched in the second half of the last decade — are heading towards completion in various clusters around the city.

The onus of new stock creation could thus vest with government entities in locations such as Dubai World Central, Silicon Oasis and the free zones.

Source: Gulf News

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INVESTING IN DUBAI'S HOSPITALITY A

SOUND CHOICE

WEDNESDAY 08 APRIL 2015

Dubai's status as a world-class holiday, business and leisure destination shows no sign of diminishing, and actually looks to be on the increase in the run-up to Expo 2020. The event is expected to attract around 17.5 million overseas visitors during the six months of the show.

This is in addition to the double-digit growth in the tourism sector, which Dubai has experienced over recent years -- an estimated 11.95 million overnight visitors were welcomed

in 2014.

Visitors are attracted by the region's legendary climate -- an average of over nine hours' sunshine per day -- combined with its white, sandy beaches and the clear, turquoise waters of

the Gulf. Shopping is another major draw.

Many of these visitors would have arrived through Dubai Airport. It's now officially the world's

busiest in terms of international passenger traffic, having moved ahead of London, and handled 69.5 million people during 2014, a 6.7 per cent increase on the previous year.

According to Dubai's Department of Tourism and Commerce Marketing, approximately 11.6

million guests stayed in the emirate's 634 hotels and hotel apartments during 2014. This is a 5.6 per cent year-on-year increase.

Tourism is expected to increase between 7--9 per cent over the next five years and account for almost 30 per cent of Dubai's GDP. It's estimated that Dubai now has around 88,680 hotel rooms available, with up to 160,000 in the pipeline over the next five years. Many of these will

be in response to the expected Expo 2020 demand, but also reflect Dubai's booming tourism industry which is growing on the back of developments such as the Mall of the World and the

much-anticipated Bluewaters Island complex which will house the world's largest Ferris wheel.

It's no surprise then that astute investors are looking to Dubai's hotel sector for new and lucrative opportunities. Over recent years, a new concept in has been growing in popularity --

the serviced apartment. It's a very simple and attractive idea: fully-fitted, serviced apartments which offer the comforts of home in luxurious settings.

They are ideal for business travellers who find conventional hotels too impersonal, or for families with children who need more amenities than hotel rooms presently offer.

Investors seeking up to 8 per cent return on investment, therefore, are turning their sights on

developments which offer such opportunities, particularly those on The Palm Jumeirah. Three developments in particular are worthy of further investigation and are the subject of intense

interest at the moment -- The Kempinski Emerald Palace Hotel, Anantara Residences and The 8, all on The Crescent.

The three exemplify the concept of luxury, managed hotel accommodation and are set to take this idea to the next level. While being totally different in design and appearance, what they all





offer is opulent accommodation, either a stylish hotel room in the case of The Kempinski Emerald, a fully-furnished serviced apartment at the Anantara or The 8, a contemporary

development.

As befits its exclusivity, The Kempinski Emerald Palace Hotel features bespoke furnishings

which have been handmade by Italian traditional furniture craftsman, Francesco Molon, and which offer a European flavour to its interior design schemes. Anantara Residences have been designed with a relaxed, chic, contemporary feel, guaranteed to appeal to a wide variety of

investors. The 8 takes its inspiration from waterside Miami-style living, with sophistication and sleek lines at the forefront of both the interiors and the facade.

In terms of what these developments (one which is available now and two of which are due for completion in 2016) present to potential investors, we must consider that The Palm has continued to lead the Dubai market in both rental yield and property value retention. With only

1,800 (4 per cent of Dubai's 45,000 new residential units) being constructed on the island by the end of 2015, exclusivity is a significant factor.

Investors also have the reassurance of knowing that if they decide to opt for the rental, rather than the primary residence route, a 'rental pool' option is available. This means that all administration, management, bookings and maintenance is taken care of by the hotel itself.

In this equitable arrangement, all monies accumulated under this kind of scheme are put into a communal 'pot', from which investors are paid per the square footage of their apartment. This

simple and hassle free method of recouping investment is growing in popularity, particularly with overseas investors who may not have the time or inclination to deal with the minutiae of

personal involvement. Investors should also note that with all the properties mentioned above, a successful referral fee is also available.

With Dubai's property market holding steady so far in 2015 and the anticipated demand for

hotel rooms increasing yearly, now is an excellent time to consider investing in these new and lucrative opportunities which have the potential to be both less volatile than residential

properties and offer a greater yield.

Source: Gulf News

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IF IT’S UPSCALE, IT HAS TO BE ON THE

PALM


This is turning out to be another busy week or two at the Palm. And it can’t be otherwise with the launch of a full-scale mixed-use project by Seven Tides, while another developer — M. State — is all set to introduce a strictly limited edition of villas — only five of them — bearing a

price tag of a whopping Dh70 million plus.

Clearly, Palm’s pull on the investor psyche — not to mention his funds — remains substantial.

“There remains still much to develop though nearly all the parcels are in the ownership of private developers rather than the master-developer (Nakheel),” said Simon Townsend, Head of Capital Markets — Middle East at the consultancy DTZ.

“While limited transactional data exists, one would envisage that the current range for such plots would be in the range of Dh600-Dh800 per square foot based on permitted built-up area

— again subject to location and the permitted development rights.

“One of the final phases of the (Palm) development — the entrance towers above the monorail hub — will, we understand, shortly be rendered and which will potentially be one of the last

pieces in the Palm puzzle.”

But well before that clicks into place, other developers are keeping the Palm pipeline busy.

Seven Tides lifted the veil on ‘Dukes Oceana’, which will feature an upscale 273-room hotel — part of the Dukes Collection — and residences scheduled for handover in the first quarter of 2016. Going on sale April 14, There will be 185 studios and 42 one-bedroom units, and with

prices ranging from Dh760,000 to Dh2.5 million.

“International high networth individuals consider lifestyle appeal as a major criteria when

looking to grow their investment portfolio and Palm Jumeirah fits the bill in every respect,” said Abdulla Bin Sulayem, CEO, Seven Tides, in a statement. It is also offering a guaranteed return on investment of 10 per cent. The company’s other interests include Anantara Dubai The Palm

Resort and Spa, Anantara Residences Dubai The Palm, and Ibn Battuta Gate Hotel.

The five bespoke villas from M. State are located on the tip of Frond M, and the developer has

not held back on the design and features. There is double-height entry and extensive use of glass. The properties — with four bedrooms and more — have private balconies and master suites linking to a separate office and Jacuzzi on the sun terrace.

Over the last 24 months and more, Nakheel too has had multiple releases of new residential projects on its flagship development. That apart, it also is busy with the 418,000 square metre

‘Nakheel Mall’ on the island, which is scheduled for completion next year, and which would further raise Palm properties’ profile as an investment choice.





“The Shoreline apartments have continued to hold their rental value and with the recent restructuring of the retail component of The Golden Mile it is envisaged this stability will

continue,” said Townsend.

The Palm’s Crescent is where a lot of the action is taking place on the project side — “A

number of hotels are now operational and construction works ongoing on many of the projects that had slowed down during the downturn,” said Townsend. “Developers have had to adjust their financial expectations and many had to go in for incentivisation of purchasers with

enticements such as guaranteed rent returns.”

Source: Gulf News

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ITS DUBAI’S MID-TIER RESIDENTIAL

LOCATIONS SEEING RENTAL GAINS


Dubai’s budget conscious tenants are having no respite as mid-market locations such as Silicon Oasis, Discovery Gardens and Karama record rental growth over and above those witnessed in the more upmarket parts of the city in the first three months.

This has been brought on as more residents choose to relocate to these “affordable” locations and thus forcing up the rentals. “Whilst more widespread rental deflation is anticipated during

the course of 2015, mid-market offerings are expected to remain in favour,” said Matthew Green, Head of Research and Consultancy at CBRE. “Occupiers [are] driven towards secondary locations as the cost of living has spiralled over the past two years.”

Apartments at Jumeirah Lakes Towers also experienced gains during lease renewals, while locations such as IMPZ, Motor City, Liwan, Al Barsha and Al Nahda recorded declines,

according to CBRE estimates.

At the citywide level, the rental fluctuations during the first quarter was estimated from -1 per cent to 3 per cent. By now, most landlords across Dubai have raised their rental demands to

be in line — or in many instances well above — the index put out by the Dubai Land Department.

According to Green, most of the big increases took place during the first-half of last year, for instance up by 27 per cent during Q-2014. “The residential leasing market has remained broadly stable for a third consecutive quarter,” Green said.

Exception to the rule

That could also be bringing in changes in the way landlords interact with tenants — some of

them are offering incentives such as rent-free stay for a month, “as well as offering semi-furnished units at the normal apartment rate”, according to a CBRE report on the status of Dubai’s property market during the first quarter. But such instances of landlords’ largesse are

more the exception than the rule.

But even if only a handful is doing so, it is still the first time in years that they have forced to

offer such incentives. The last time was during the crisis years of 2009-11, when Dubai’s landlords were willing to take multiple cheques and offer extended rent-free stays to ensure they had some income coming via their property.

As for the present, there are still no indications that additional supply of homes is bringing down rents by a significant margin across Dubai. An estimated 16,000 apartments and villas

were added to the existing stock last year.

In fact, what has happened is “emergence of new supply and traffic related issues has led to

drop in rental rates in a few residential districts while other developments with improved infrastructure and retail facilities maintained healthy rental rates”, the CBRE report finds.





Source: Gulf News

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AJMAN’S AL ZORAH TURN TO TEST

INVESTOR APPETITE

TUESDAY 07 APRIL 2015

The extent of investor appetite for premium residential property in Ajman will be tested with the release

of the ‘golf villas’ at the Al Zorah development, with prices starting from Dh4 million. There are only 42

of these units — all overlooking the Jack Nicklaus designed par-72, 18-hole golf course — being built in

the first phase of the multi-year Dh60 billion mixed-use development that will eventually see the

creation of five ‘districts’ within it.

“Phase I of the development has reached a certain maturity with the infrastructure, the golf course and

the two resorts, and that made it ideal to open sales for the villas now,” said Imad Dana, CEO of Al

Zorah Development Co., which is equally owned by the Ajman Government and Lebanon’s Solidere

International. “Specific to Phase 1, we have committed investments of Dh2 billion.

“The two resorts will be ready within six months of each other by late this year or early next, with one of

the properties being managed by the Oberoi Group. For the golf course, the launch schedule is set for

June/July.”

While the villas are built by the master-developer, there were also plots sold to private investors at the

time of the project’s launch back in 2008. These investors should be in a position to take up on-site

activity in the second-half.

“As things stand now, the Phase II development should be initiated by next year, where again the bulk

of the residential stock will be built by us,” said Dana. “But we need to be sure that market appetite

exists before we decide on the sales phase for future releases.”

Phase II will also have a retail and leisure component set around the four marinas. On whether there are

plans for a community mall, Dana said such an option is being kept open. “The master plan has a piece

of land where retail could come in,” said Dana. “But again that requires the whole development to reach

a critical mass before any decision is taken.”

The Al Zorah development will encapsulate 5.4 million square metres and will take the better part of the

next 10 years to realise all of its potential. When the financial crisis struck, the developer saw fit to

revise the master plan according to market circumstances. The development schedule for the hospitality

component was brought forward.

Dana said that there are no plans to bring in any strategic investors at the operating company level ...

“But we can accommodate them to develop specific districts or even select offerings. Phase I

development was financed direct by the operating company.”

Source: Gulf News

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DUBAI METRO'S 'ROUTE 2020' TO

SERVE DISCOVERY GARDENS, FURJAN,

JUMEIRAH GOLF ESTATE, DIP

SATURDAY 11 APRIL 2015

The RTA’s ‘Route 2020’ project will encompass the extension of the Red Line of the Dubai Metro from

Nakheel Harbour and Tower Metro Station to the site of Expo 2020, it was announced today.

The extended sector of the Metro line stretches 15km and includes seven stations.

Mattar Al Tayer, Chairman of the Roads and Transport Authority (RTA), giving details of the project said:

“Route 2020 starts off Nakheel Harbour and Tower Metro Station and extends 15km (11km elevated and

fourkm underground), and includes seven stations (five elevated and two underground stations).

Mattar Al Tayer, Chairman of the Roads and Transport Authority (RTA).

“The project serves densely with average-to-high population density such as the Gardens, Discovery

Gardens, Furjan, Jumeirah Golf Estate, and the Dubai Investment Park.

“These communities are inhabited by about 240,000 persons and the journey from the Dubai Marina to

the site of Expo will take 16 minutes,” explained Al Tayer.

“The RTA has examined different options of Route 2020 and assessed their effectiveness and impact on

the neighbourhood based on a host of technical perimeters that include the enhancement of the

development plans in Dubai,” he said.

“It also serves the largest possible number of residents as well as current & future projects, easing

snarls on some congested road sectors, providing top class service to targeted communities, and

integrating with public transit.

RTA Chairman stated that the RTA would hold this month a workshop for consultants and contractors

specialised in rail projects where it would exhibit various components of Route 2020 project.

As per the timeline set, the project is expected to be released for tendering next July.

Source: Emirates 24/7

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LONDON PROPERTY TALKS LIFT DAMAC

SHARE PRICE

SUNDAY 05 APRIL 2015

Shares in Damac rose more than 8 per cent in trading yesterday after the developer said it was in talks

to enter the London real estate market.

Damac shares registered their biggest jump since February 15 to close at Dh2.42 after Dubai’s second-

largest listed developer said that it was considering buying an equity stake in a project to build a 50-

storey apartment-led tower in central London.

The developer said it was considering making the investment after a company under the control of the

Damac majority shareholder Hussain Sajwani exchanged contracts to buy a plot of land in the UK

capital, where planning consent had already been granted for a 685,000 square feet residential tower.

In a statement to the Dubai Financial Market, Damac said that Mr Sajwani, who owns 79.44 per cent of

Damac, expected to complete the land transaction with an unnamed seller “shortly”.

Damac said that the proposed project would comprise 450 apartments and almost 35,700 sq ft of shops.

If it goes ahead with its plan to purchase the equity stake, the move would mark Damac’s entry into the

high-profile British housing market.

“Damac’s expansion strategy is to target international markets that are customer-led and where the

company has existing equity with customers who would be interested in these markets,” Damac said in

its bourse statement.

“Damac is continuously looking at global opportunities where the Damac brand can add value and these

are evaluated on a case-by-case basis,” it added.

According to the latest figures from the building society Nationwide, average annual house price rises in

London slowed during the first quarter of 2015 to 12.7 per cent, down from 17.8 per cent in the final

quarter of 2014.

The unnamed project Damac is looking at shares a number of key similarities with a high-profile plan by

McLaren Property and Citygrove to build the New Bondway tower in Vauxhall, SW8.

According to the two developers, the proposed development in zone 1, known locally as the “Jenga

tower” because of its block-like appearance, would comprise 450 apartments, a private gym, cinema

and winter gardens as well as shops and offices. It is anticipated that the development will have an end

value of £350 million (Dh1.91 billion). Planning consent was granted in August 2014.

A Damac spokesman declined to comment further on the London project.

Damac began trading on the London Stock Exchange in December 2013 before moving to the DFM at

the start of 2015. It already has projects in the UAE, Qatar, Saudi Arabia, Jordan and Lebanon.

Source: The National

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RENT INCREASES IN ABU DHABI LEAD

TO CALL FOR NEW CAP

SUNDAY 05 APRIL 2015

Almost 18 months since the removal of the 5 per cent cap on annual rent increases, tenants say they

are still being hit with hefty increases.

And some real estate insiders are asking whether it is time to bring the cap back in the capital.

“Since November 2013 when the Government removed the cap, landlords have been free to raise the

rent to whatever they wanted,” said Liam Coady, of MD Real Estate. He said that last year rents rose by

an average of 16 per cent across the city.

“Right now landlords hold all the cards,” he said. “The sooner the cap goes back on, the better. It makes

a better playing field.”

But Mr Coady said losing the cap also meant owners could bring their underpriced units up to market

averages. That led to discontent from tenants who thought they were being gouged by increases.

“The main reason for prices jumping so steeply in places like Al Reef and Hydra Village is when they first

became available they were really cheap,” he said, adding there had been enough time for the

correction.

Mohammed Al Mahli moved into a four-bedroom villa at Al Raha Gardens with his family seven years

ago.

Mr Al Mahli said that after some manageable increases he was recently told his rent was rising by more

than 18 per cent.

“I was shocked,” he said.

“My friends have had increases of Dh5,000 to Dh10,000. This is too much.”

Mr Al Mahli said his last annual lease contract was for Dh190,000. Now, the owner of the villa is asking

for Dh225,000.

“I am going to pay it, I don’t have a choice,” he said. “I’ve done so many things to this house, I won’t

move now because I don’t want to do it all over again.”

Egyptian A B, 36, said the rent for his three-bedroom villa in Al Reef had increased by Dh27,000 in less

than two years.

“It is definitely going to create financial hardship,” he said.

Last month, the property manager sent a letter asking him to pay Dh120,000 for another 12 months,

and Dh5,000 extra if he split the payment into two cheques.

Eager to avoid the immediate hassle of searching for a new home, he said he asked the property

manager for a more favourable rate and a shorter rental term.

Although some factors justify an increase, Mr Coady said some “greedy” landlords were exploiting the

situation.

“Landlords have had the chance to catch up,” he said, pointing to Al Reef as an example of why the rate

cap should be re-implemented.





Without it, he said rents would always have the potential to become “unsustainable and unaffordable”.

“By having the cap in place it reassures the tenant, and also means they can plan on staying in one

place for a prolonged period of time,” he said. “Everybody knows where they stand when there are caps

and restrictions in place.”

Mr Coady said he thought the worst could be behind for tenants, and his firm was not expecting to see

the same types of increases this year as in previous years.

And he said his firm thought there was the possibility of seeing the cap reinstated this year.

With an expectation to see rents increase, Joanne Tate, a property consultant at LLJ Property, agreed

that now was the time to bring back the cap.

Ms Tate said an influx of residents and the effects of recent changes in mortgage rules that were

keeping buyers out of the market were factors driving up demand for rental properties.

“Leasing is very busy at the moment,” she said.


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ABU DHABI AIRPORTS APPOINTS NEW

CEO SUNDAY 05 APRIL 2015

The operator of Abu Dhabi International Airport has appointed a new chief executive to head

up the company.

Mohamed Mubarak Al Mazrouei takes over the role after the former Abu Dhabi Airports CEO Tony Douglas left for a position in the UK government last month, according to a statement

from the company.

Mr Al Mazrouei, who serves on the boards of both Abu Dhabi Airports and the Abu Dhabi Ports

Company, has previously been chief executive of the developer Manazel Real Estate. He has also served in the UAE Armed Forces.

Mr Al Mazrouei has a bachelor of science in civil engineering from the University of North Carolina in the US.

“I have been fortunate to have been closely involved with the various affairs and projects of

Abu Dhabi Airports over the past three years, and I look forward to working with our management team,” Mr Al Mazrouei said.

In 2017, when the Midfield Terminal Building opens, Abu Dhabi airport expects to handle about 30 million passengers.

Last year, the airport reported approximately 20 million passengers, an annual growth of 20

per cent, and the highest in its history.


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FIRST PHASE OF TOWN SQUARE

‘VALUE’ APARTMENTS LAUNCHED IN

DUBAI

MONDAY 06 APRIL 2015

The first phase of apartments in the Town Square project in Dubai has been launched, and is

aimed at young families and young arrivals in the city.

The launch of Zahra Apartments features 306 apartments, with one-bedroom units measuring from 515 sq ft to 600 sq ft, two bedrooms from 825 sq ft to 965 sq ft and three bedrooms

from 1,200 sq ft to 1,400 sq ft. Studios will also be available.

The developer, Nshama, said prices start at Dh349,998.

“Specifically designed for single professionals, couples and families, Zahra Apartments serve as an ideal investment for a secure future, enabling them to save on rents by comfortably purchasing their own homes in Dubai,” said Fred Durie, chief executive of Nshama.

This launch follows on from the recent offering of the Zahra and Hayat Townhouses, which started at Dh999,998 for a three-bedroom property.

Town Square is a 750-acre development with a central square equivalent to 16 football pitches. It is located near Al Barsha and is planned to feature more than 3,000 townhouses and 18,000 apartments.

Sales for Zahra Apartments start on April 11.


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REEM ISLAND GETS 906 NEW

APARTMENTS WITH HYDRA AVENUE

FIRST PHASE COMPLETED


Abu Dhabi’s property supply has received a boost after the first phase of Hydra Avenue on Reem Island was completed, adding 906 apartments.

A statement from the developer, Hydra Properties, said that the final building completion certificates had been issued for towers C4, C5 and C6 at the City of Lights project.

It added that the beginning of the handover, including snagging and other procedures, would now start.

Once fully complete, Hydra Avenue will consist of six towers in two main clusters with 2,292

apartments and 39 townhouses. They will feature swimming pools, gyms, saunas, track and field, a boardwalk, plus a supermarket, dining outlets and other shops.

“The completion of these three towers marks a major milestone in the first phase of the Hydra Avenue project,” said Mohamed Al Habech, chief commercial officer, Hydra Properties.

“We look forward to completing the next phases of both Hydra Avenue and Hydra Village Abu

Dhabi to keep up with the continuing growth and healthy demand in the property sector in Abu Dhabi.”

Rent increases in the capital are predicted to slow this year with thousands of new homes due to come to the market. This follows an average rise of 17 per cent last year, according to the

property broker CBRE.

Earlier this week The National reported that both tenants and real estate workers were calling for the return of the 5 per cent rent cap almost 18 months after it was removed as landlords

were issuing hefty increases.


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SEYCHELLES TOURISM BOARD

PREDICTS 10% RISE IN UAE VISITORS

THIS YEAR


The Seychelles Tourism Board predicts a 10 per cent increase in the number of UAE visitors to

the archipelago this year.

“Last year, 232,000 tourists visited Seychelles – of which 13,000 were from the UAE and 18,000 were from the Middle East,” says Sherin Naiken, the chief executive of the Seychelles

Tourism Board. “We predict a 10 per cent increase in the number of UAE tourists to Seychelles this year.”

According to TRI Consulting Middle East, the Seychelles had about 30 major hotel developments in the country in 2014. This is in addition to smaller guest houses.

During the fourth quarter of last year, licensed accommodations in the Seychelles sold 242,819

room nights, reflecting a 58 per cent occupancy rate.

Ms Naiken says that the cancellation of the Emirates Group $253 million hotel project in the

Seychelles will not affect UAE investments in the country.

In February, the Seychelles president James Michel announced in a state of the nation address that the project would not go ahead because of “environmental reasons”, after the hotel faced

criticism from local citizens and politicians because of its size and its proposed location, close to a marine park in Seychelles main island Mahé.

Last November, Emirates had proposed to downscale the size of the project to 100 rooms instead of 400, but the project still faced opposition owing to potential damage to some marine species in the area. Emirates Group had initially started the Cap Ternay Resort project in 2007,

but the recession meant it had to put the project on hold. It only resumed a year ago, which is when the environmental impact assessment started.

“I don’t foresee it affecting the UAE investment in Seychelles, because of the good relationship that the two countries have on a bilateral level,” says Ms Naiken.

“It happens from time to time that some projects don’t go through because of the

environmental reports,” she added.

Emirates declined to comment.

The UAE investment in the Seychelles includes stakes in hotels such as The Four Seasons and Kempinski. H-Hotel is also planning a development, according to Ms Naiken.

Peter Goddard, managing director of TRI Middle East, said much of the UAE’s investments in the Seychelles tourism sector are land acquisitions and acquisitions of existing hotels.





“Some of the hotels and resorts in Seychelles have the highest rates of occupancy in the world. As a consequence, they can be very profitable,” he says.


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UAE PLAYS ITS PART IN SEYCHELLES’

BURNING AMBITIONS


Rose Bertin, 52, stands in the central market of Victoria, the capital of the Seychelles, surrounded by bottles of coconut oil, cinnamon, salted fish and other products that she sells.

She knows all her products well, but the coconut oil is an old friend. At the age of eight, Mrs

Bertin had to leave school to look after her younger siblings. Growing up with no electricity in the house, she had to burn coconut oil to get light.

“Now we get water running from the sink, but everything comes with good and bad things. That’s the way it is,” she says, referring to the low wages that her son and daughter get by

working at an international brand hotel while paying a hefty amount to commute across the main island of Mahé.

Despite the country’s extraordinary natural beauty that has earned it a reputation of a “picture

perfect” idyll, life can be pretty stressful for the Seychellois people, who depend on the tourism sector for about 15 per cent of formal employment. The fortunes of other industries from

banking to construction are also closely tied to tourism in the island nation of about 450 square kilometres – smaller than the city of Chicago.

Lack of land in what is the smallest country in Africa has always been a constraint, and most of

the capital is situated on reclaimed land. The last reclamation took place between 1998 and 2002, according to Christian Lionnet, Seychelles minister for land use and housing.

“We reclaimed 352 hectares of land. At the time, crude oil was at US$18 per barrel. We were very lucky to reclaim back then, because today the reclamation would cost us [a total of] $55 million. Also a dollar was worth five rupees (Dh1.37) at the time. Now it’s worth 13 rupees.”

The archipelago’s economy suffered after the financial crisis eight years ago, especially following the decision to let its currency trade freely in 2008. In November of that year the

dollar increased to 17.5 rupees. In the mid-’90s it had been at record lows of approximately 4.5 rupees.

The Seychelles economy began to recover in 2010 and it grew 3.7 per cent last year and is

expected to grow 3.8 per cent this year, according to the IMF.

Mr Lionnet said there remains a “very huge gap” between the supply and demand for housing

in the country. The government builds 300 to 500 housing units per year while current demand is for an annual 4,000 homes.

A perceived problem is the number of expats in the country competing with the Seychellois for

the same homes. There are about 13,413 expats in the islands group out of the total population of about 90,000.

“Expats are driving prices up,” says Mr Lionnet. “Now we are trying to get big industries to build their own accommodation for the expats.





“Every year, we spend $11m to $12m dollars in housing,” said Mr Lionnet. The budget for this year has been set at $422m, the country’s then minister of finance, trade and investment,

Pierre Laporte, said in December.

The UAE, which has developed close ties with the country, is supporting government efforts to

tackle the housing shortage.

The government launched the Perseverance Housing Estate initiative in 2005 to build 2,000 affordable homes. While 1,000 units have been built, the project was temporary stopped

during the financial crisis.

The UAE is financing 142 units of the Perseverance Project as part of a grant. It is also

supporting other aspects of economic development.

In 2011, the president of the Seychelles, James Michel, asked Sheikh Khalifa, President of the UAE, for help to formulate a master plan for the development of the country. The strategy is

similar in scope to Abu Dhabi’s 2030 vision.

“We wanted a plan that would help us best utilise the resources in Victoria for the next 20

years,” says Mr Lionnet.

It focuses on the model of the Blue Economy, which includes the concept of using what is locally available for job and revenue creation with reduced energy use, all the while ensuring

that any initiatives benefit the communities involved.

Proponents of the Blue Economy include Gunter Pauli, who has sometimes been called the

“Steve Jobs of sustainability”.

Ideas for the Seychelles Strategic Plan 2040 also include the development of a tram system or

a monorail, according to Mr Lionnet. “There have been talks about sea transport or building cable cars for scenic views,” he says. “It will be nice to have cable cars that go to the mountain to enjoy the view.”

According to Abu Dhabi’s Urban Planning Council (UPC) its work on the Seychelles 2040 plan is its first international collaboration.

“The Blue Economy [model] is an opportunity for the Seychelles. They can take advantage of the marine environment for fishing, tourism, shipping, but need to ensure its protection,” says UPC’s Ahmed Al Kuwaiti, who is project manager for the Seychelles strategic plan.

In 2013, the Abu Dhabi Fund for Development, together with the renewable energy firm Masdar, built the Port of Victoria Wind Farm in the archipelago. The wind farm consists of eight

wind turbines, with capacity to produce seven gigawatt hours of clean energy per year – enough to power about 2,100 homes, or 8 per cent of Mahe’s grid capacity.

Tourism, however, is the main contributor to the country’s growth, accounting for half of its

GDP and the majority of its foreign exchange earnings. About 230,272 tourists arrived in the Seychelles in 2014, up 1 per cent from a year earlier. Visitors from Europe decreased last year

but were replaced by new markets such as China.

The national carrier Air Seychelles, in which Etihad Airways took a stake in 2012, has stepped up its service to France, one of its biggest source markets, resuming non-stop flights to Paris

from July.





Air Seychelles plans to boost passenger numbers by 15 per cent this year after carrying 412,088 passengers in 2014.

Mr Lionnet says that while the Seychelles has developed a diverse hotel sector, it can do better to provide more entertainment options in the country.

“People [who] come here need to have a diversity of things to do,” he says. “Not only the sand, beach, and sea. We want to develop restaurants, different products that people can buy. We need more entertainment areas.”

Back at Victoria’s market, Mrs Bertin smiles brightly and in a Creole accent says: “Everybody thinks it’s good to have hotels and developments in Seychelles. It’s good for work. It’s good for

the people.”


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SEVEN TIDES PALM JUMEIRAH

PROJECTS TO BE HANDED OVER IN

FIRST QUARTER OF NEXT YEAR


Palm Jumeirah is set for some more residential and hotel units even as home prices are expected to fall in Dubai.

The Dubai-based developer Seven Tides yesterday said that Dukes Oceana, a mixed-use five-star complex on the trunk of the man-made island, will be handed over in the first quarter of

next year.

The London-based Dukes will manage the residential as well as the hotel components.

The Dukes Oceana residences will be launched for sale on Tuesday.

The project will have 227 studio and one-bedroom apartments. Prices start from Dh760,000 for a studio and increase to Dh2.5 million for a one-bedroom unit.

The 273-room hotel will feature a private beach and six restaurants.

Average home prices and rents have fallen marginally over the past three months, and the residential market is stabilising near the top of its market cycle, according to Craig Plumb,

head of the research advisory firm JLL in the Middle East and North Africa region.

“JLL expects this trend to continue over the remainder of the year, during which we are

forecasting average prices to decline by up to 10 per cent during this year,” he said.

“This does not mean there is no room for further new product to enter the market.”

The current rates of employment and population growth indicate that the Dubai residential market could support 10,000 to 15,000 additional residential units this year.

“And additional supply will be supported by the continued demand for investment products in

the Dubai market,” said Mr Plumb.

About 25,000 units are expected to come on to the market this year, and an additional 13,000

units next year, according to JLL’s fourth quarter report. During the same period, rentals and sales for apartments remained flat quarter-on-quarter.

JLL’s first quarter report is expected on Monday.

Emirati investors form a majority of the buyers accounting for about 21 per cent of sales for the first half of last year, said the Dubai Land Department. They were followed by Indians,

British nationals, Pakistanis, Saudi Arabians, Russians and Iranians.

“Given the strengthening of the dollar over the past year, particularly against the rouble and the euro, Russian and European buyers are likely to be less active this year, with those from





elsewhere in the Middle East, particularly Saudi and Iran, and Chinese becoming relatively more important,” Mr Plumb said.

Despite being a destination in itself with malls and new retail spaces coming up, Palm Jumeirah is not insulated from macro trends such as the strengthening dollar, which will have an impact

on all sectors of the market, he said.

Separately, Nakheel, the master developer of the Palm Islands, unveiled new projects with a combined area of 23 million square feet across Deira Islands, Dragon Mart and Ibn Battuta

Mall.


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INVESTMENT CORPORATION OF DUBAI

TAKES STAKE IN LUXURY US AND

SOUTH AFRICAN HOTELS


Investment Corporation of Dubai, the emirate’s main investment vehicle, has strengthened its presence in the global hospitality business with the acquisition of stakes in three luxury hotels.

ICD has purchased the W Hotel in Washington DC, a majority holding in the Mandarin Oriental in New York, and a minority in the One & Only resort in Cape Town, South Africa.

The purchase price was not announced.

“Building on our strong domestic growth in the hospitality and tourism sectors, this strategic move reinforces ICD as a serious contender in the global luxury hospitality space,” said

Mohammed Al Shaibani, the executive director and chief executive of ICD.

“ICD has recently made significant progress in developing its hospitality presence domestically,

supporting the sustainable economic growth of Dubai. The acquisition of luxury hotels in prime global destinations complements ICD’s existing portfolio. ICD will continue to be on the lookout for similar additions to its portfolio in the future,” he added.

Last year, ICD clinched what was regarded as a “transformational” deal in the international hotels business when it bought a big stake in Kerzner International, the global luxury hotels

management group, in which Dubai World’s subsidiary Istithmar World already had a 25 per cent holding.

With that deal, Dubai acquired control of a major international hotels chain to add to the successful Jumeirah brand, owned by Dubai Holding.

ICD owns outright the Atlantis resort on the Palm Jumeirah, having paid US$250 million last

year for a remaining 50 per cent holding, and it has a controlling interest in the company that manages the One & Only and Mazagan chains.

“The strategic transactions demonstrate the commitment of ICD, the principle investment arm of the government of Dubai, to continuously expand the reach and expertise of Dubai in a sector considered integral to the growth of the emirate and its economy,” a statement from

ICD said.

ICD has strategic stakes in many of the companies regarded as core to the emirate’s economic

strategy, such as the Emirates aviation group, Emirates NBD and Dubai Electricity and Water Authority.

In 2013, when ICD launched a bond prospectus, its total assets stood at $160 billion.





The three new hotels in the ICD portfolio are all regarded as prime locations and luxury standards. The W in Washington is the closest hotel to the White House, while the Mandarin

Oriental overlooks Manhattan’s Central Park. The Cape Town hotel is on the city’s waterfront.


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DUBAI HOUSE PRICES SLIP OVER

FIRST QUARTER, RENTS STABLE AS

NEW HOMES ARRIVES


House prices in Dubai fell slightly during the first three months of the year as thousands of new homes came on stream.

Figures released by the property broker CBRE reveal that average house prices in the emirate fell 2 per cent compared with the previous quarter after 16,000 new homes were completed

during 2014.

The news is the first confirmation that house prices in the city are set to fall significantly this year as new homes complete at a time when oil prices have slumped and the government’s

plans to slow the market come into effect.

JLL predicted in January that average house prices and rents in Dubai would fall 10 per cent

during 2015 owing to a lack of affordability in the market and the recent global oil price crash, while Standard & Poor’s said they would fall 20 per cent because of increased supply and weakening investor sentiment triggered by the tumbling price of oil.

“The average sale rate for residential properties dipped by 2 per cent quarter-on-quarter and is expected to see a further drop during the course of the year,” said Matthew Green, the head of

research at CBRE’s Dubai office.

“The delivery of a significant number of new units during 2015 will add further pressure to the

residential market over the course of the year,” he added.

House prices in Dubai crashed spectacularly following the 2008 global financial crisis before rocketing significantly towards their pre-crisis levels in 2013 and 2014.

According to the report, the total value of housing sales transactions completed during the first quarter of the year fell 20 per cent compared with the same period the previous year to

Dh6.39 billion. At the same time the total number of housing sales transactions declined 4 per cent compared with the previous year to 3,896.

The report found that sales in prime areas such as Palm Jumeirah, Dubai Marina, Emirates

Living, Jumeirah Beach Residences (JBR) and Downtown Dubai accounted for a combined Dh3.27bn of total sales – 51 per cent of the total value transacted during the period.

But developers claim that the decreases in average prices come off the back of an increase in the number of housing schemes being developed in less prime parts of the city as mortgage caps continue to restrict the amount of money many people can borrow.

Last week Damac, Dubai’s second-largest listed developer, said it hoped that a switch from super-luxury apartments to building hundreds of more affordable suburban villas would help it





weather the emirate’s property slowdown. It joins other developers offering more reasonably priced homes in cheaper locations including Danube, Tecom and Nshama.

CBRE reported that after massive falls and unsustainable growth over the past decade, housing rents in Dubai remained stable for the third quarter in a row.

The broker reported that rents in the city remained about the same as during the previous quarter, with most areas experiencing changes which varied between falls of 1 per cent and increases of 3 per cent.

Rents fell slightly in Al Nahda, Al Barsha, International Media Production Zone, Motor City and Liwan, while the gainers included Jumeirah Lakes Towers, Discovery Gardens and Karama,

CBRE said.

“The market’s relative stability during the past nine months is reflected in the huge swing in growth figures from 27 per cent in the year to Q1, 2014 versus 3 per cent in the year to Q1,

2015,” said Mr Green.

“The leasing market is expected to witness increased landlord incentives in the form of rent-

free period and other allowances, while rental declines are also likely in some areas,” he added.

Rents for three to five-bedroom villas fell by around 1 per cent compared with the previous

quarter as 3,000 new villas were completed across the emirate.

CBRE predicted that average villa rents were likely to fall further as developers complete

thousands more new homes over the coming year.

The most significant rental declines were in Jumeirah Village and The Villa developments,

which registered a drop of 3 and 4 per cent respectively.


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WHY PROPERTY IN ABU DHABI IS A

GREAT INVESTMENT

FRIDAY 10 APRIL 2015

The markets in the Middle East are pretty jumpy at the moment, with political instability across the region, the sliding oil price and Dubai’s real estate market going into reverse. In these turbulent seas only a few islands of calm remain, and Abu Dhabi is one of them. With its solid

political systems and vast oil and cash reserves there are few storms Abu Dhabi cannot weather. The emirate has an often overlooked real estate sector that people are now looking to

for better and more stable returns. So why put your money into real estate in Abu Dhabi?

The process

Buying property in Abu Dhabi is a fairly simple and quick process. Many thousands of

transactions have been completed and banks and developers are experienced and secure. The unit mix is varied and expanding all the time. Most developments are less than five years old

and are popular with tenants as they stand out from the traditional older Abu Dhabi stock.

Returns

Investments in some property in Abu Dhabi can earn returns of more than 7 per cent on your

money net (look at net returns and not gross). There are few bank accounts or funds in the world that will give you that kind of return. There is also the potential to leverage your

investment for increased returns from capital appreciation.

No rent cap

Rent increases in Abu Dhabi are not capped and there is no rent calculator. Landlords may

charge their tenants whatever the market will bear, so they can take full advantage of any rent increases.

Legal protections

The law in Abu Dhabi is very landlord-friendly. In brief there is no difficulty in evicting tenants once their lease term has finished, you just need to give them two months’ notice before the

end of that lease. You do not need a reason not to renew the lease.

Stability

Property has gone through its boom and bust cycles like every other investment, but it remains a stable asset. Property prices and rents have recovered well since the global slowdown and Abu Dhabi’s significant income from oil and large capital reserves mean that

continued growth prospects are good. As well as that, the UAE government has learnt its lessons from 2008 and is active (by use of loan to value rules and tinkering with registration

fees) in reducing the chance of future bubbles.

Future prospects





Property prices and returns in Abu Dhabi are linked to population and supply. At the moment the government has a large infrastructure expansion plan in place (Etihad Rail, the Midfield

Terminal, Etihad Airways, the Louvre and Guggenheim etc) called the 2030 Plan, which is bringing people to the UAE by creating jobs. Set against that there is little property supply in

the pipeline. Only another 18,000 units are due to come online in 2015 and 2016 (an increase of just 2.8 per cent per year) according to JLL, and Colliers believes there is a current housing shortfall of more than 50,000 units.

Rent payment

Rent in Abu Dhabi is paid upfront for the year, usually in one or two cheques (the second is

post-dated). This affords significant security of income and some safeguard against tenants absconding.

Low sophistication of current landlords

Abu Dhabi is an immature market as far as the rentals market goes and includes many first-time landlords. As a result it suffers from low sophistication among property owners. Nimbler,

more intelligent landlords can gain higher than average rents by understanding the market and what tenants are looking for. Furnishing certain units, for example, is just one of the ways you can command higher rents (few units in Abu Dhabi are furnished).

Every real estate professional will tell you now is the perfect time to buy as your investment is about to appreciate in value hugely and make you a millionaire overnight. No one can predict if

your property value is going to go up or down, so trust your gut and don’t consult the stars. Buy an investment where your rent is going to pay your mortgage with a little left over for

you. You’ll be paying off the debt, accumulating equity in the asset and pocketing some change from the rental return. Be a smart investor and make sure the numbers make sense.


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DUBAI'S WORLD'S TALLEST TWISTED

TOWER IN TOP MILLION-DOLLAR

DEALS

THURSDAY 09 APRIL 2015

An apartment sold for Dh12.90 million on Palm Jumeirah has topped the list of 10 biggest apartment deals in Dubai in the first quarter 2015, reveals data shared exclusively by

Reidin.com with Emirates 24|7.

The sale, registered in January 2015, saw the buyer paying Dh1,258 per square feet for the

10,254 square feet apartment in Marina Residence 2, which was followed by a similar sized unit (10,254 square feet) unit in Marina Residence 4, Palm Jumeirah, selling for Dh12.80 million.

On the third place was a sale in The Residence 3 (W1), Downtown Dubai. The 3,546 square feet apartment was sold for Dh12.50 million, with per price square foot being Dh3,525.

Silverene Towers A, Dubai Marina, registered a sale of Dh12 million, taking the fourth place.

On the fifth and sixth place were deals in Cayan Tower, the world's tallest tower featuring a 90-degree twist, in Dubai Marina. The two units were sold for Dh11.89 million and Dh11.60

million, respectively. On Sunday, French climber Alain Robert, aka ‘Spiderman’, will ascent the tower.

The Address Downtown Hotel (Lake Hotel), Downtown Dubai, registered two deals, worth Dh11.50 million and Dh11.30 million, taking the seventh and eight position, respectively.

The second last place went to Kempinski Palm Jumeirah Residence with a sale price of Dh10.73 million with the final place going to Cayan Tower transaction of Dh10.72 million.

On Wednesday, Emirates 24|7 reported that Emirates Hills, home to some of the richest in

Dubai, had topped the list of the top 10 biggest villa deals for the first quarter 2015.


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'DUBAI PROPERTY REPORT': RENT-FREE

PERIODS LIKELY


The consultancy said the villa market saw an addition of 3,000 new units during 2014. No number was given on new apartments released. (File)

Landlords in Dubai are likely to offer rent-free periods as new housing supply comes in putting

rents under pressure, according to a global real estate consultancy.

“The leasing market which has remained stable over the past three quarters is expected to

witness increased landlord incentives in the form of rent-free period and other allowances, while rental declines are also likely in some areas,” said Mat Green, Head of Research & Consultancy UAE, CBRE Middle East, in the first quarter ‘Dubai Property Report’.

“The markets relative stability during the past nine months is reflected in the huge swing in growth figures from 27 per cent in the year to Q1, 2014 versus three per cent in the year to

Q1, 2015,” he added.

The average decline and increase in apartment rents was in the range of one to three per cent.

Apartment rentals witnessed decline in Al Nahda, Al Barsha, International Media Production

Zone (IMPZ), MotorCity and Liwan, however, Jumeirah Lakes Towers, Discovery Gardens and Karama bucked the trend.

In the villa/townhouse segment, lease rates remained largely unchanged during the first quarter, with smaller two-bedroom units registering increase of around one per cent.

Three to five bedroom villa declined by nearly one per cent due to an increase in the supply of

villa units — a trend likely to gather pace over the next 12 months.

The most significant decline were seen in Jumeirah Village and The Villa, Dubailand, which

dropped thee per cent and four per cent, respectively.

The consultancy said the villa market saw an addition of 3,000 new units during 2014. No number was given on new apartments released.

In January, JLL, a real estate consultancy, said Dubai residents could expect rental declines this year, with even rent-free periods being offered to tenants. Later, Knight Frank, a UK-

based consultancy, said residential rents are likely to fall by five per cent, while property prices will be down by 5 to 10 per cent in 2015.

Asteco, a real estate consultancy, said earlier that rents will not only soften in 2015, but a

more significant drop in rental rates could be on the cards from 2016 onwards as a large number of projects announced in 2013/14 (an estimated 12,000 to 14,000 villa units) are

completed.

Volume rise q-o-q





Residential sale transactions registered a “significant” drop in overall value terms year-on-year, falling 20 per cent, as volumes declined by around 4 per cent. But on quarter-on-quarter

basis, there has actually been a rise in both transaction values and volumes.

During Q1 2015, total sales transactions were valued at Dh6.39 billion with 3,896 transactions

compared with Dh4.55 billion and 2,573 deals during Q4 2014.

“… it was not sufficient to avoid a decline in average sales rates, which fell by around 2 per cent over the quarter,” the report said.


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TOP 10 VILLA DEALS IN DUBAI: DH60

MILLION IN EMIRATES HILLS TOPS LIST


Emirates Hills, home to some of the richest in Dubai, has topped the list of the top 10 biggest villa deals for the first quarter 2015, reveals data shared exclusively by Reidin.com with Emirates 24|7.

Five transactions were reported in the upscale community, totaling Dh223 million, with Palm Jumeirah accounting for the remaining five transactions, amounting Dh145.59 million.

In the Emirates Hills community, a Dh60-million transaction, registered with the Dubai Land Department in February, topped the chart with an average per square foot price of Dh3,046.

In second place is a Dh45 million transaction, followed by two transactions of Dh42 million each.

A Dh40-million deal on Palm Jumeirah follows, with a Dh34 million transaction, once again, in

Emirates Hills.

The last four slots went to deals on the Palm with closing prices at Dh33 million, Dh26.275

million, Dh26.121 million and Dh20.20 million, respectively.

Emirates 24|7 had reported earlier that in the first quarter of 2014, Palm Jumeirah registered nine of the top 10 biggest villa sales, with the costliest selling for Dh45 million.

Wealth-X and Sotheby's International Realty report pointed out earlier that non-European ultra-high net worth individuals - those with $30 million or above in assets – were investing in

Dubai’s luxury property market over Monaco.

Separately, UK-based Knight Frank’s Wealth Report 2015 revealed $1 million (Dh3.67 million) could buy an apartment in Dubai that was four and seven times bigger than Singapore and

London.

The report said one could buy 145 square metres of prime property in the emirate compared to

17 square metres in Monaco, 20 square metres in Hong Kong, 39 square metres in Singapore and 21 square metres in London for $1 million.

Though experts have said that there has been a decline in sales volumes, Moody’s Investors

Service said in March 2015 that the slowdown in the market was “positive in the long run” and will alleviate the “potential overheating”, though prices could fall 10 to 15 per cent.

Dubai is the host city for Expo 2020, which will run for a period of six months, starting October 20, 2020 till April 10, 2021.

The emirate aims to draw more than 25 million visitors, expecting Dh25 billion in total

investment in infrastructure-related projects and create 277,000 new jobs.






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DUBAI SETS EYE ON 'MINI WORLD'

PARK AHEAD OF EXPO 2020

MONDAY 06 APRIL 2015

Dubai Municipality will commence work on a ‘Mini World Park’, designed to showcase replicas of famous monuments from all over the world, after it finalises its location, a senior government official told Emirates 24|7.

“The park is on hold, but we are going to restart once we determine a location. There are alternative locations and we haven’t decided on it,” Abdulla Mohammed Rafia, Assistant

Director General for Engineering and Planning Sector, Dubai Municipality, told this website in an exclusive interview.

“We will start the project as soon as we get the new location,” he added.

The park is the first of its kind in the Arab world and will display monuments such as Burj Khalifa, Burj Al Arab, New York's Empire State Building, the Canton Tower in China, Toronto's

CN Tower, the Petronas Tower in Malaysia and the Swiss Re Tower in the City of London, according to an earlier report by the Emirates News Agency (Wam).

Abdulla Mohammed Rafia, Assistant Director General for Engineering and Planning Sector,

Dubai Municipality.

It will also host a replica of historical landmarks, such as Abu Simbel Temple and Pyramids in

Egypt, Algeria's ancient Roman ruins at Timgad, The Great Wall of China, Leptis Magna in Libya, the Kingdom of Kerma in Sudan, Aztec Temples in Mexico, the Colosseum in Rome, The Acropolis of Athens, Stonehenge in the south of England and Petra in Jordan.

Some models of natural monuments and features, including The Hanging Gardens of Babylon, Iraq, Uluru (Ayers Rock) in Australia, Raouche Rock in Lebanon, Mount Rushmore in the US,

rice terraces in the Philippines, Resurrection Island in the south Atlantic Ocean, and Niagara Falls will be displayed.

The municipality is also planning to complete other projects such as Aladdin City, inspired by

the tales of Aladdin and Sindbad, and a mixed-used beachfront lifestyle development in Al Mamzar ahead of the emirate hosting the Expo 2020 event.


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With 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, Jordan and the Kingdom of Saudi Arabia not only provides a deep

understanding of the local markets but also enables us to undertake large instructions where we can quickly apply resources to meet clients requirements.

Our breadth of experience across all the main property sectors is underpinned by our sales, leasing and investment teams transacting in the market and

a wealth of research that supports our decision making.

John Allen BSc MRICS

Director, Valuation & Advisory

+971 4 403 7777

[email protected]

Julia Knibbs MSc

Manager – Research and Consultancy - UAE

+971 4 403 7789

[email protected]

VALUATION & ADVISORY

Our professional advisory services are conducted

by suitably qualified personnel all of whom have

had extensive real estate experience within the

Middle East and internationally.

Our valuations are carried out in accordance with

the Royal Institution of Chartered Surveyors

(RICS) and International Valuation Standards

(IVS) and are undertaken by appropriately

qualified valuers with extensive local experience.

The Professional Services Asteco conducts

throughout the region include:

• Consultancy and Advisory Services

• Market Research

• Valuation Services

SALES

Asteco has established a large regional property

sales division with representatives based in UAE,

Saudi Arabia, Qatar and Jordan.

Our sales teams have extensive experience in the

negotiation and sale of a variety of assets.

LEASING

Asteco has been instrumental in the leasing of

many high-profile developments across the GCC.

ASSET MANAGEMENT

Asteco provides comprehensive asset

management services to all property owners,

whether a single unit (IPM) or a regional mixed

use portfolio. Our focus is on maximising value

for our Clients.

OWNER ASSOCIATION

Asteco has the experience, systems, procedures

and manuals in place to provide streamlined

comprehensive Association Management and

Consultancy Services to residential, commercial

and mixed use communities throughout the GCC

Region.

SALES MANAGEMENT

Our Sales Management services are

comprehensive and encompass everything

required for the successful completion and

handover of units to individual unit owners.

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