NEWS BRIEF 19 - Asteco Property Management › eshot › newsbrief2016 › pdf › ... · damac...

DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN

© Asteco Property Management, 2016 asteco.com | astecoreports.com IN THE MIDDLE EAST FOR 30 YEARS

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

NEWS BRIEF 19 SUNDAY 08 MAY 2016


© Asteco Property Management, 2016 asteco.com | astecoreports.com

IN THE MIDDLE EAST FOR 30 YEARS



REAL ESTATE NEWS UAE

UAE RIPE FOR STUDENT HOUSING

UAE BANK WARNS OF 'MAGIC PEN' FRAUD; HOW TO AVOID IT

WHAT GIVES YOU UP TO 20% RENTAL INCOME IN UAE… CLICK TO KNOW

FALCON-INSPIRED DESIGN FOR UAE EXPO 2020 NATIONAL PAVILION

DUBAI

WHICH SERIOUS VIOLATION IN DUBAI CAN GET YOU FINE OF DH100,000... CLICK

HERE

WORKERS RIGHTS: UAE GETS TOUGH WITH DISHONEST RECRUITERS, EMPLOYERS

HIGHER SALES LIFT EMAAR’S Q1 PROFITS BY 17% TO DH1.21BN

JACUZZI OR SAUNA? DAMAC LAUNCHES HOTEL SPA VILLAS IN DUBAI’S AKOYA

OXYGEN

DUBAI’S LUXURY HOTELS FULLY BOOKED FOR LONG WEEKEND

DUBAI LANDLORD UNABLE TO REMOVE DIVORCING TENANT ABANDONED BY

HUSBAND

LEGOLAND DUBAI UNVEILS LOST KINGDOM ADVENTURE

DUBAI’S NEWEST ‘DISCOUNT’ SHOPPING DESTINATION OPENS THIS YEAR

COSTLY? YOU WILL BE SURPRISED WHAT $1MN CAN BUY IN DUBAI VS THE WORLD

SHILPA SHETTY’S ‘GLAMZ’ INSPIRES NEW PROJECT IN DUBAI

DANUBE LAUNCHES SIXTH AFFORDABLE HOUSING PROJECT IN DUBAI

DED DENIES PENALISING ANYONE FOR COMMENTING ON DUBAI ECONOMY

EMAAR PROPERTIES FIRST-QUARTER PROFIT UP 17% TO DH1.21 BILLION

UNION PROPERTIES HIRES CHINA STATE TO BUILD DH450M MOTOR CITY SCHEME

AIRBNB OFFERS BUSINESS TRAVELLERS MORE CHOICES THAN A HOTEL STAY

WORK BEGINS ON LUXURY RESIDENTIAL PROJECT IN MBR CITY IN DUBAI






REAL ESTATE NEWS

ABU DHABI

DH7.2M HIDD AL SAADIYAT VILLA AT THE CHEAPER END BUT IN A STUNNING

LOCATION

NORTHERN EMIRATES

RAK PROPERTIES INCOME RISES DESPITE SLOW MARKET

GCC | INTERNATIONAL

PWC BUYS CONSTRUCTION CLAIMS FIRM AS DISPUTES RISE IN GCC






FALCON-INSPIRED DESIGN FOR UAE EXPO

2020 NATIONAL PAVILION

SUNDAY, 01 MAY 2016

The National Media Council has selected architect Santiago Calatrava’s design for the UAE Pavilion for Dubai

World Expo 2020.

Located facing the Al Wasl Plaza, which lies at the centre of the 200-hectare exhibition zone, the UAE Pavilion –

whose design will be inspired by a falcon in flight – will represent the UAE to the 25 million visitors and

participants from over 180 nations who are expected to visit the Expo from October 2020 to April 2021.

Santiago Calatrava’s proposal was formally selected following a seven-month design competition managed by

Masdar, Abu Dhabi’s renewable energy company, in its capacity as program manager.

The contest saw nine of the world’s most renowned architectural firms submit 11 concepts. Each design was

evaluated against specific criteria, including how fully the design expressed the main theme of Expo 2020

“Connecting Minds, Creating the Future” and how well it captured a distinct Emirati feel and a balance between

the UAE’s past and future.

Commenting on the appointment, Minister of State and National Media Council Chairman Dr Sultan Ahmed Al

Jaber said: “The proposed design of the UAE Pavilion captures the story we want to tell the world about our

nation. Our late founding father His Highness Sheikh Zayed bin Sultan Al Nahyan used falconry expeditions to

forge connections between tribes and to create a distinct national identity which ultimately led to the founding of

the United Arab Emirates. Now, the falcon design will symbolise how we are connecting the UAE to the minds of

the world and how as a global community we can soar to new heights through partnership and cooperation.”

Minister of State for International Cooperation and Director General of Expo 2020 Dubai Reem Ebrahim Al

Hashimy said: “The pavilion will be one of the Expo's greatest icons. The design will evoke the pioneering spirit

and power of connections that transformed the UAE from a collection of small, desert communities, into a global

connection point. The UAE pavilion will become an important cornerstone in our site and will have a legacy plan

that will reflect our hopes and ambitions for the many years to come.”

Speaking of his appointment, Santiago Calatrava said: “I am deeply honoured that our practice has been chosen

to design the national pavilion for Dubai Expo 2020, a project of national and global significance. I am confident

that the final design will be a symbol of the bold and daring spirit of the UAE, reflected in what is poised to be the

most inclusive and global Expo in history.”

The pavilion is expected to cover up to 15,000 square meters and will include numerous exhibition areas, an

auditorium, food and beverage outlets and VIP lounges. It will be designed to embrace sustainable building

principles.

Masdar CEO Mohamed Al Ramahi said, “We will capitalise on our experience developing Masdar City, which is on

a journey to being the most sustainable urban development in the world, to ensure the delivery of an innovative,

high-performance pavilion and community space that embraces the Expo’s themes of mobility, opportunity and

sustainability.”






Masdar was appointed program manager by the National Media Council for the UAE Pavilion on the basis of the

renewable energy company’s track record of successfully delivering highly innovative and sustainable projects,

including the LEED Platinum-certified Siemens Middle East Headquarters.

Source: Emirates 24/7

Back to Index






WHAT GIVES YOU UP TO 20% RENTAL

INCOME IN UAE… CLICK TO KNOW

SATURDAY, 07 MAY 2016

Residential rental yields in Dubai are among the world’s highest, but a new investment category can fetch

investors up to 20 per cent.

The new asset class, according to Cluttons, a property consultancy, is worker accommodation.

“The variety of investment options available in Dubai range from low-end, high-yielding residential units in

peripheral schemes such as International City and Discovery Gardens, to more sophisticated investment options

in the office market, where yields can range from 6.5 per cent to 9 per cent. We are also witnessing the

emergence of worker accommodation as an increasingly popular asset class, which can offer yields of between 10

per cent and 20 per cent,” said Faisal Durrani, Head of Research, Cluttons.

The Global Property Guide, a website that compiles and analyses property price performance of the world's big

economies, has said Dubai offers rental income on average of 7.1 per cent, which is one of the highest in the

world. In comparison, gross rental yields in Hong Kong are 2.82 per cent, India 2.22 per cent and Singapore 2.83

per cent, London between 2.72 per cent and 3.20 per cent.

A number of developers have been projecting rental yields of between 6 per cent and 10 per cent to attract

investors/buyers.

The high rental yield and capital appreciation are among the factors attracting global High Net Worth Individuals

to the UAE, with the consultancy’s “2016 Middle East Private Capital Survey Part 2” showing Dubai, Abu Dhabi and

Sharjah to have emerged as the most popular investment destinations for the regional wealthy.

The survey has found 63 per cent of GCC HNWIs planning to invest in real estate during 2016. Of those surveyed,

27 per cent named Dubai as their top three destinations within the GCC, while 21 per cent chose Abu Dhabi and 8

per cent Sharjah.

In April 2016, a new report by Standard and Poor’s Ratings Services said that lifting of sanctions on Russia and

Iran, oil price recovery and a weakened US dollar will strongly benefit the recovery of the property market.

“We still believe that the lifting of geopolitical restrictions, such the sanctions on Russia and Iran, could strongly

benefit the recovery of the UAE property market. This would open new investment flows into the regions' real

estate markets and partly compensate for the softening demand from other countries,” the ratings agency said.

“A rebound in oil prices as well as weakening US dollar would also likely reverse the negative trend,” it added,

quoting industry experts that real estate prices have declined by 10 to 13 per cent on average in 2015.

“The strong US dollar has made UAE real estate more expensive for international investors holding non-US-dollar

liquidities, and weaker tourist sentiment has affected retailers and their landlords,” S&P said.


Back to Index






WORK BEGINS ON LUXURY RESIDENTIAL

PROJECT IN MBR CITY IN DUBAI

THURSDAY, 05 MAY 2016

Dubai-based Gemini Property Developers has commenced construction of Gemini Splendor, a luxury residential

project, in Mohammed Bin Rashid (MBR) City.

The project with a built-up area of over 320,000 square feet is expected to be completed in early 2018.

Following its groundbreaking earlier this month, the construction work has been initiated at the site by the

developers.

The project will feature a total of 134 units of well-planned one, two and three-bedroom apartments, penthouses

and townhouses equipped with state-of-the-art amenities. Apartment units range from 780 square feet to 3,400

square feet.

Sudhakar R. Rao, Managing Director of Gemini Property Developers, said: “Gemini Splendor will help in satisfying

the rising demand among Dubai residents for luxury apartments built to best-in-class standards. The project

marks an important phase of our entry into the real estate industry and reinforces our commitment to deliver key

projects in one of the most sought-after Middle Eastern markets.

The company has awarded the enabling works contract to National Piling and will be announcing the contract for

the main construction soon.

The company will be announcing the sales and marketing plan soon.

"The UAE has emerged as one of the most vibrant, cosmopolitan and progressive regions in the Middle East and

there is very strong demand for value-for-money housing in many parts of the country. We are confident that due

to UAE’s preference for high-quality living, our projects will be well received," said company Joint Managing

Director Prabhakar R. Rao.


Back to Index






AIRBNB OFFERS BUSINESS TRAVELLERS

MORE CHOICES THAN A HOTEL STAY SUNDAY, 01 MAY 2016

Local hoteliers are acknowledging the rising importance of Airbnb for business travel.

Mikael Svensson, the general manager of the 499-room Viceroy hotel on Dubai’s Palm Jumeirah, which will open

in April next year, says that when he travels to London he stays in a Knightsbridge flat that is half the price of

ahotel room.

“Airbnb has three main advantages: price, quality of accommodation and location," he says. “No other source of

apartments gives you as much choice."

Airbnb launched a parallel portal for business travellers last year and in January revealed that more than 50,000

employees from 5,000 companies have used the rental site.

Olivier Gremillon, the managing director for Airbnb in EMEA, chose, last week, to stay in an Airbnb flat with a view

of the Burj Khalifa in Dubai’s Downtown district, while attending the Arabian Hotel Investment Conference.

“I like hotels for a few days but prefer Airbnb for more than that," he says. “It is nice to have the full use of a home,

with more space, a place to cook and an extremely private atmosphere."

Until last week, local regulation prevented homeowners from listing their properties as all Airbnbs had to be

operated by a company. But on Thursday, Dubai’s Department of Tourism and Commerce Marketing said

property owners will be able to rent their homes directly. This applies to full accommodation, not room rentals.

Not everyone welcomed the competition. “The main disadvantage for Airbnb for the executive traveller is that you

really don’t know who you are staying with. There is no guarantee about the service, or whether the bed is

comfortable or the shower works," says Russel Sharpe, the chief operating officer of CityMax, a UAE chain of

three-star hotels. “You don’t get the reassurance of a trusted brand."

Then again Airbnb, now valued at US$50 billion and with more than two million listings, has become a trusted

brand.

“Airbnb is in a grey area of regulation in the UAE," says Thomas Grundner, the vice president for regional sales

and marketing at Millennium Hotels and Resorts. “If that changes it could become another distribution channel

for us too."

q&a it’s better than a hotel

Airbnb’s Olivier Gremillon tells Peter Cooper more about the attractions of the portal for the business traveller:

Do you target the executive traveller?

Yes, I am one myself. The best thing to do on the website is to set-up a business-travel-ready filter. Then you will

get a flat that’s ready for business use with 24/7 check-in, ironing board and great Wi-Fi. We can also offer direct

billing to companies.

What does Airbnb do better than the hotels?






Some guys I know from Microsoft book a big house from us and share it with their colleagues when they are away

on business together. Normally, they all work in different offices. It’s a different type of corporate bonding

exercise.

Any other special applications for the business traveller?

If you are relocating to a new country or town then renting one of our apartments is a much better way to get to

know your way around than living in a hotel. You live more like a normal resident right from the word go. It’s also

cheaper.

How can Airbnb add to UAE hospitality?

If you take the Fifa World Cup in Rio de Janeiro, for example, then 25 per cent of visitors to that event stayed in

Airbnb accommodation. It could be the same for Expo 2020 in Dubai – and save building an enormous number of

hotels that may be difficult to keep full afterwards.

What is your commission model and inventory?

We charge 3 per cent to the host and fees for guests range between 6 and 12 per cent but can be higher or lower

depending on the specifics of the reservation.

Source: The National

Back to Index






UNION PROPERTIES HIRES CHINA STATE TO

BUILD DH450M MOTOR CITY SCHEME SUNDAY, 01 MAY 2016

Union Properties has appointed China State Construction Engineering’s (CSCEC) Middle East arm to build its

Dh450 million Oia Residences project in Dubai’s Motor City.

Union Properties’ chairman, Khalid bin Kalban, said yesterday at a ceremony to mark the start of construction that

although the project is being launched in a “soft" market, it is one in which construction costs are low and savings

can be passed on to investors.

“Developers realise that they will have to look into their prices once more. If you look, overall, there is a slowdown.

However, this is the right time to build."

He said that Oia Residences, made up of 269 flats, was the second project launched in Motor City recently, and

construction will soon start on a third, known as The Link. It will contain a hotel and retail space and will be

positioned close to The Ribbon, a series of retail buildings due for completion within the next few weeks.

“We’re finding it to be a very good time to build because contractor prices are astonishingly good as far as

developers are concerned," Mr Kalban said. “We are riding this cycle and I think the market will rebound hopefully

within one year’s time. I think by the end of 2017 it looks positive."

Yu Tao, the general manager of CSCEC Middle East, said that its Dh235m construction contract is due to be

finished within 20 months, with work on the site expected to be completed by the end of next year.

“It’s a very challenging and very compact programme. However, currently we are ahead of schedule. So we hope

with support from the client [and] from the consultant we will keep up such good progress.

“This is the first time we are working with Union Properties, although we’ve known them for a very long time and

we understand they are one of the leading real estate companies in the market."

He said CSCEC Middle East remained very positive about the UAE’s construction market, although he described it

as “quite volatile".

“I think this market is very open for international players," Mr Tao said. “Over the past 10 years, China State has

built a good network and a relationship with most of our clients. So we [gained] repeat orders from them and still

have quite a lot of projects in the pipeline."

CSCEC’s recent project wins include a joint-venture contract from Nakheel to build the Dh1.4 billion Palm Gateway

scheme alongside Korea’s Ssangyong Engineering and Construction, consisting of three high-rise residential

towers on top of the Palm Jumeirah monorail station, and a contract to build a 364-villa project known as Zen for

Indigo Properties.

The lead consultant for the Oia Residences project is Conin and the architect responsible for the Greek-inspired

design is AK Design.


Back to Index






EMAAR PROPERTIES FIRST-QUARTER

PROFIT UP 17% TO DH1.21 BILLION SUNDAY, 01 MAY 2016

Property sales in Dubai helped lift Emaar Properties’ first quarter profit by 17 per cent, despite a continuing slump

in prices.

Dubai-listed Emaar yesterday posted a net profit of Dh1.2 billion, meeting an average of estimates compiled by

Bloomberg, and surpassing the Dh1.03bn the company made during the same period a year ago.

The profit increase came off the back of a 16 per cent hike in revenue, which rose to Dh3.5bn, up from Dh3bn a

year earlier. Emaar said the biggest slice of revenue – Dh1.9bn – came from its main business of selling luxury off-

plan flats, which recorded a 32 per cent increase on the same period a year earlier.

Most of the property that Emaar sold during the period was in Dubai – Dh4.1bn from a total of Dh5.1bn. It said it

had sold 70 per cent more property in Dubai during the first quarter than it did a year ago.

Rents from Emaar’s shopping centres and hotels made up another Dh1.5bn of its revenue, while the company’s

international operations led by its Egyptian arm also generated Dh499 million. In Egypt, Emaar said it sold

Dh683m of property.

“Property sales in Dubai and other key international markets have gained momentum, a testament to our

differentiating strength in offering the right property of choice for investors in premium locations," said Mohamed

Alabbar, the chairman of Emaar.

Last week, ratings agency Standard & Poor’s warned that it expected average house prices in the city to fall by a

further 10 per cent this year, with “no sign of improvement on the immediate horizon".

S&P, which rates Emaar’s bonds, said that after falling between 10 and 13 per cent last year, it expected similar

falls this year because of a strong dollar and the low price of oil.

Analysts pointed out that under new accounting rules, Emaar and other property builders are allowed to stagger

the revenue recognition from selling off-plan properties over a longer period of time rather than only when the

property is handed over to the buyer.

“On the face of it, these results appear very positive and it is clear that Emaar is benefiting from selling a lot of off-

plan property during the Dubai property boom in 2012, 2013 and 2014," said Sanyalak Manibhandu, a senior

analyst at the National Bank of Abu Dhabi. “However, with the new accounting rules in place it is not really

possible to look at these results as an accurate reflection of the Dubai property market."


Back to Index






RAK PROPERTIES INCOME RISES DESPITE

SLOW MARKET

SUNDAY, 01 MAY 2016

RAK Properties, the developer backed by the Ras Al Khaimah Government, has posted a 25 per cent profit

increase for the first quarter despite a slowing property market in the Northern Emirates.

The Abu Dhabi-listed group said on Sunday profit for the first three months of the year increased to Dh18.5

million, up from Dh14.8m from a year earlier.

The profit rise came after a 54 per cent increase in sales as revenues grew to Dh71.5m, up from Dh46.7m a year

earlier, thanks to the handover of completed villas at the Flamingo Villas project in its Mina Al Arab master-

planned development.

In a statement accompanying the accounts, Mohammed Sultan Al Qadi, RAK Properties’ managing director and

chief executive, said that 157 Bermuda villas and a second phase of 57 Flamingo villas at Mina Al Arab were under

construction.

He said the company had started to operate its Lagoon marina, a lifestyle marina at Mina Al Arab aimed at driving

footfall to the shops and cafes in the company’s Lagoon Walk development.

Mr Al Qadi said the company had secured bank finance for two development projects expected to begin this year:

the Julphar Residence, a 24-floor tower planned for Reem Island in the capital, which was originally announced in

2008; and a 250-room eco-hotel in Mina Al Arab, which will be managed by Minor Hotel Group.

RAK Properties said that it was also looking to press ahead with the development of 205 flats in Mohammed Bin

Zayed City in Abu Dhabi, which would range from studios to two-bedroom flats. It is also planning to build a five-

star hotel at Mina Al Arab.

The company said it had settled a Dh92m loan that matured in January.

RAK Properties launched Mina Al Arab, a housing complex spread over 43 million square feet, in May 2006 but

was forced to put more than Dh1 billion worth of projects on hold as the global financial crisis hit the industry in

2009.

The real estate markets in all of the UAE’s Northern Emirates slowed at the end of last year as Dubai’s property

slump and the effect of low oil prices hit sales, according to brokers.

“The overall negative sentiment in the Dubai market has affected sales in the Northern Emirates, which remained

slow," said John Stevens, the managing director of the real estate services company Asteco.

“This was especially evident in Ras Al Khaimah, which historically benefited from good levels of demand for its

master-planned developments, as they were considered a better value for money option compared with Dubai."

RAK Properties shares remained unchanged at 56 fils on Sunday.


Back to Index






DED DENIES PENALISING ANYONE FOR

COMMENTING ON DUBAI ECONOMY

SUNDAY, 01 MAY 2016

Dubai’s Department of Economic Development (DED) has issued a statement denying that it had taken action

against anyone for making negative comments about the emirate’s economy.

The DED said there was “no truth in rumours" that it had penalised any company or individual for commenting on

economic matters, adding that “no government entity is empowered to act against expressing such opinions, nor

any violation involved in such comments".

It said, however, that members of the public should make sure that any information used concerning the national

economy and commercial activity in the country comes from government authorities. It also urged people not to

pay attention to what it described as “unconfirmed reports and hearsay".

DED said that Dubai enjoyed “the trust of local, regional and international businessmen, investors and companies,

which is reflected in the emirate’s growth across key indicators such as foreign direct investment, gross domestic

product and the number of commercial licences issued".

The Dubai Government introduced a law in late November that was intended to help the Dubai Statistics Centre

(DSC) to “establish an advanced statistics system".

Among the regulations was a requirement forbidding private companies from conducting surveys “without

obtaining authorisation from the Dubai Statistics Centre".

A number of companies to whom The National has spoken said that they had written to the DSC to obtain

permission but had not received a reply.

Manika Dhama, the research manager for property consultants Cavendish Maxwell, said that it had not received

any comments from either the Dubai Economic Department or Dubai Statistics Centre regarding its research

methodology.

“When we provide macroeconomic data from government entities we include them with due credit and source it

from publicly available information [on their website] or from emails channelled through the system set up by

them," Ms Dhama said.

“All other research provided by us is from our valuation teams working in the market as well as our Property

Monitor tool that tracks real-time data."

Craig Plumb, the head of research at property consultancy JLL, also made the argument that it only commented

on the state of the overall economy in the context of the real estate market.

“Where possible, we already use government statistics including Land Department figures, but that is not always

possible," he said, citing the lack of official data on rent statistics as an example.

“In those cases, we source data from credible third parties."

David Godchaux, the chief executive of Core UAE, an associate of international broker Savills, said: “We use mainly

government statistics and when we don’t, we do our own research. And we are careful."






The issue over the accuracy of data in surveys came to a head in summer last year when the Damac Properties’

managing director, Ziad El Chaar, hit out at brokers for forecasting excessive levels of supply, which he said had “a

detrimental effect" on market sentiment.

However, brokers hit back by stating they relied on developers’ own overly optimistic completion forecasts.

JLL has subsequently pointed out in recent reports that “materialisation rates" – the rate of properties that

actually come to market compared with those developers predict will be built – stands at about 30 per cent.

Of the 29,200 homes forecasted to be delivered in Dubai this year, it predicted that about 10,000 would actually

be built.


Back to Index






UAE BANK WARNS OF 'MAGIC PEN' FRAUD;

HOW TO AVOID IT


Banks in the UAE are warning customers not to fall prey to a new 'Magic Pen' method used by fraudsters.

“In our effort to provide you with an environment of safe and secure banking, we would like to inform you about a

new 'Magic Pen' method used by fraudsters recently, posing as bank representatives to dupe customers,” the

bank said in a notice sent to customers.

“These fraudsters ask customers to complete the loan / credit card applications and provide a blank signed

security cheque wherein the imposter fills up the details on the cheque in their presence using his magic pen.

“Subsequently, the details of beneficiary and amount in the cheque are altered since it was filled up with the

magic pen, which allows the details entered to be erased without a trace. The cheque is then cashed from various

banks using third parties,” the notice said.

Emirates 24|7 spoke to an Indian businessman based in Ras Al Khaimah who has fallen prey to the 'magic pen' a

fraud.

The businessman, who asked not to be named, claimed that he was approached by a person, who claimed to be

representative of a local bank and offered him the much-needed credit facility.

“The caller introduced himself as a bank representative and took all the documents, including a ‘security cheque’

for Dh100,000 and asking me to keep a minimum balance of Dh100,000 in my bank account.

“I gave the cheque in the bank’s name, but the amount and beneficiary details were found to have been altered,

allegedly using a ‘magic pen’,” the businessman claimed, adding that Dh98,000 had been withdrawn from his

account.

A complaint has been filed with the Ras Al Khaimah police and an investigation is ongoing.

So how do you protect yourself? Here is what the bank states:

# Please ask the representative to identify himself and check his photo ID card issued by the bank.

# Do not issue a blank security cheque. Please fill in all details in the cheque including name of the beneficiary

(which should be the bank’s name) and amount with your own pen.

# Do not use the pens provided by the other party to fill in details of the cheque

# If in doubt contact the concerned bank on their land line and confirm that the representative indeed works for

the bank he claims to represent.

Sim Swap

In April 2015, Emirates 24|7 reported that banks were advising customers about a new 'SIM Swap' fraud, asking

them to keep their phones switched on at all times even when they are travelling.

In an email sent to its internet banking customers, RAK Bank had said the “SIM Swap” occurs when criminals

fraudulently obtain a new SIM card with your existing mobile number, pretending to be you.






Once the SIM swap has occurred your phone will show an on-screen notification from your service provider, with

the notification usually reading, 'SIM not registered'.

As soon as your mobile number is assigned to the new SIM card, the fraudster will receive all your calls and

confidential banking SMS notifications which could include one-time passwords sent to you by the bank.

The fraudsters could use the information to access your account and conduct fraudulent transactions, the bank

said, stating, “It was enhancing the security of banking transactions with customers now having to enter a

telephone identification number when self-registering for mobile banking.”

Customers are advised that if one suspects a fraudulent SIM swap, they should contact the bank urgently to notify

of the incident and contact Etisalat and Du immediately to inform them of the incident and visit their nearest

outlet to restore their mobile services.

Through its Twitter account, Dubai Police has advised residents to type the bank website address into their web

browser and never go to bank websites from a link in an email.


Back to Index






PWC BUYS CONSTRUCTION CLAIMS FIRM

AS DISPUTES RISE IN GCC

TUESDAY, 03 MAY 2016

The Big Four accountancy firm PwC has bought a Middle East consultancy that specialises in construction

disputes.

PwC has acquired HLP Consulting – a 24-strong practice with offices in Dubai, Abu Dhabi and Qatar serving the

entire GCC market.

HLP had been set up by former members of UK-based Trett Consulting in 2010. It was led by directors Mike

Harding, Simon Lowe, Alastair Gray and Shaun Crawley, who all joined PwC this week.

John Wilkinson, a senior partner in PwC’s Middle East Forensic Services business, said that it had been building its

capital projects team in the Middle East for about five years, which provides feasibility studies and can help with

the financial aspect of project overruns, but often relied on other parts of its network for technical expertise.

He said that the HLP Consulting deal would bring this regional technical knowledge, as well as a core claims

consultancy business that advises on legal disputes.

“With the declining oil price, everybody is looking at value from their projects. Projects are being put on hold for a

period of time, some are being cancelled completely when obligations are entered into, and some are being

continued but with more constrained finances around them.

“All of those factors are leading to an increase in, if not disputes, then the potential for disputes. It had been

relatively benign, but in a market which is

undertaking as much infrastructure spend as the Middle East, there will always be a decent element of that type

of business."

Claims within the region can often take years to settle. The contractorArabtec recently confirmed to The National

that it is to recommence a Dh1.4 billion claim against Meydan after previously agreeing to try to find an amicable

solution three years ago to a dispute that originally began in 2008 when its joint venture was removed from the

project to build Meydan racecourse.

Meanwhile, Umar Saleem, the finance director of fit-out contractor Depa, has said that he expects its long-

running, Dh900 million dispute with New Doha International Airport (NDIA) to reach a conclusion early next year.

“We have the next hearing in November and we expect the award some time early next year," he said.

Depa and its joint venture partner, Lindner, were removed from a project to fit out 17 lounges at NDIA in June

2012 and its project bonds were cashed.

The joint venture filed a claim against NDIA in September 2013, stating that its removal had been because of its

unwillingness to accept less favourable contract terms.


Back to Index






DANUBE LAUNCHES SIXTH AFFORDABLE

HOUSING PROJECT IN DUBAI


Danube Properties is confident of selling the Glamz project within a month and expects to launch two more

schemes in Dubai before the end of the year, the chairman said on Tuesday.

“Rather than only Glamz I, I should have also launched II, III, and IV. I know this will be sold. Before Ramadan, I will

be out of this. Within one month, I expect everything will be taken by investors," Rizwan Sajan said during the

launch. The Dh300 million, 418-unit Glamz project, will be built next to its existing Starz by Danube project in Al

Furjan.

He said that he wanted to stick to the company’s existing plan of only buying plots for schemes and launching

new projects once construction work on the previous development is under way.

“However good we are selling, I don’t want to be greedy. I don’t want to be in a situation where I launch three or

four projects at a time and then I get stuck. Then I have to leverage with the banks. I would rather be happy

making a small profit, go one step at a time and move forward."

Construction work on Glamz should begin “within two to three months", aid the company’s general manager, Atif

Rahman, with the project due for completion by September 2018.

Danube Properties now has a development portfolio worth Dh1.8 billion, consisting of 1,711 small flats and town

houses – almost all of these have been sold, but some units remain available within Dreamz and Glitz III.

Mr Sajan said that 85 per cent had gone to end-users looking to own rather than rent properties, but that some

investors had taken a full floor containing nine studios, five one-bed flats and a pair of two-beds – for Dh8.5m.

He said that Danube Properties limits the amount bought by single investors in schemes such as Glamz to one

floor, but said that these can bring in about Dh900,000 a year – a yield of 10 to 11 per cent.

He is in negotiations for another plot, which he hopes to secure by the end of the month. This will be used “to

launch a project before Cityscape, and then before December we will hopefully have another one".

Mr Rahman said that it will support the Glamz launch with 2,306 outdoor advertisements, plus advertisements on

11 television stations and seven radio stations. Many of these will feature the Bollywood actress Shilpa Shetty and

focus on convincing renters to switch to owning, as well as a payment plan that requires a 25 per cent deposit

within six weeks and a further 1 per cent down payment each month.

Speaking to The National at the recent International Property Show, Abdul Basset Betraoui, the managing director

of property consultancy Land Sterling, said that he felt Danube Properties “have got it spot on" when it comes to

marketing its schemes, including its pricing and payment plan offer.


Back to Index






SHILPA SHETTY’S ‘GLAMZ’ INSPIRES NEW

PROJECT IN DUBAI


Dubai-based Danube Properties on Tuesday launched Dh300 million ‘Glamz Residence’ in Al Furjan, targeting the

‘affordable’ housing segment.

“We are confident to sell out in less than 30 days as we are targeting a category that aims to become home

owners rather than remain renters,” company Chairman Rizwan Sajan said after announcing the project.

Located close to Discovery Gardens, the project will have 418 apartments and set for completion in 2018.

Unit buyers will have to pay 10 per cent down payment followed by 15 per cent payment in 60 days and then 75

equal monthly payment without interest.

The fully-furnished apartments will have a convertible sofa in the living room to transform it into a bedroom

whenever required. The concept, in fact, continues from its previous project ‘Starz’ in Al Furjan. Bollywood star

Shilpa Shetty is the company’s brand ambassador.

Ruling out a concern raised by Real Estate Regulatory Agency Chief Marwan bin Ghalitha on investors being

offered post-completion payment plans, Sajan said that their investors were end-users with all their launch

projects being completely sold out.

“Almost 90 per cent of our investors are end-users. They have almost paid 50 per cent of the apartment value and

the rest we have in post-dated cheques. We don’t think that they will default after paying 50 per cent.”

The developer expects average rental returns of 10 per cent, which Sajan believes will attract more buyers from

India and Saudi Arabia.

Sajan said that their Dreamz in Al Furjan will be delivered in September 2016, well ahead of schedule with other

projects the Glitz Trio in Dubai Studio City and Starz in Al Furjan all being four to five months ahead of schedule.

Danube Group, which started as a building materials company in 1993 and stepped into real estate development

in 2014, has ruled out getting into the construction business.

“Though we can make a good margin, but we won’t get into it. We will give our projects to other companies

[contractors] to build,” Sajan added.


Back to Index






COSTLY? YOU WILL BE SURPRISED WHAT

$1MN CAN BUY IN DUBAI VS THE WORLD

MONDAY, 02 MAY 2016

One million dollars (Dh3.67 million) can buy you almost nine and seven times more space than Monaco and

London, a Knight Frank report reveals.

In a statement sent to Emirates 24|7, the UK-based consultancy revealed that $1 million (Dh3.67 million) can buy

155 square metres of prime property in Dubai compared to only 17 square metres in Monaco and 21 square

metres in London.

With $1 million, a property buyer can get only 20 square metres in Hong Kong and 39 square metres in Singapore.

An investor can get 41 square metres in Sydney, 50 square metres in Paris, 79 square metres in Moscow, 48

square metres in Shanghai and 96 square metres in Mumbai.

Among the list of 20 cities surveyed, Dubai is placed 19th with Cape Town taking the last slot, where a $1 million

buys 284 square metres of prime property.

Dubai is also one of the most affordable cities to buy real estate with Vancouver topped the chart of the highest

hikes seen in 2015 with 24.5 per cent followed by Sydney and Shanghai with 14.8 per cent and 14.1 per cent,

respectively.

The emirate, however, slipped 5.5 per cent, ranked 96th among the 100 cities tracked by Knight Frank. Abu Dhabi

was ranked 75th, with prices declining 2 per cent.

In March 2016, this website reported, quoting the consultancy’s Wealth Report 2016, that Dubai had beaten

Shanghai, Paris and Sydney to take the fifth spot on the list of top 10 most important city for the Ultra High Net

Worth Individuals (people with over $30 million excluding their primary residence).

Placed at the eight position in 2015, the emirate has risen two ranks to the sixth position, being one of the best-

connected cities in the world.


Back to Index






DUBAI’S NEWEST ‘DISCOUNT’ SHOPPING

DESTINATION OPENS THIS YEAR

MONDAY, 02 MAY 2016

Meraas, a Dubai-based holding company, will open - The Outlet Village - adjacent to Dubai Parks and Resorts in

the third quarter of 2016.

The mall will offer discounted high-end brands merchandise all year round and will feature 25,000 square metres

of gross leasable area.

The indoor mall will have over 100 retail brands and appeal to fashion lovers and leisure shoppers.

The design of The Outlet Village is inspired by San Gimignano, a hilltop town in the Tuscan countryside whose

historic centre was declared a UNESCO World Heritage Site in 1990.

Meraas brought together renowned architects, designers, consultants and top-tier contractors to ensure that The

Outlet Village is shaped into a distinctive retail destination emulating the ambiance of San Gimignano.

Omar Ghalib Al-Bustami, Director – Project Management Leisure & Entertainment at Meraas, said: “The Outlet

Village brings together striking aesthetics inspired by a rich past with contemporary lifestyle, inviting visitors to

explore the contrast between old and new. We have spared no effort to evoke the charm of San Gimignano and

ensure that this distinctive shopping experience includes much-loved and prestigious brands to perfectly match

the needs of today’s sophisticated customer.”

Aside from hosting some of the world’s most luxurious and contemporary high street fashion brands, The Outlet

Village will retail popular sportswear and equipment as well as furniture and household goods at “attractive”

prices.

The UAE retail market is expected to be valued at $53.7 billion in 2016, up 7 per cent over 2015, according to data

from consultancy Euromonitor International. Dubai has retained its position as the second most important

international shopping destination globally in 2015.

The Outlet Village adds to Meraas' portfolio which includes The Beach, BoxPark and City Walk.


Back to Index






LEGOLAND DUBAI UNVEILS LOST

KINGDOM ADVENTURE


With just five months to go for the official opening of Legoland Dubai in October this year, the theme park has

added another proverbial brick in the wall by unveiled its latest attraction, Lost Kingdom Adventure.

“Lost Kingdom Adventure, is yet another significant addition to the list of attractions at Legoland Dubai, which is

the first of its kind in the region. We are confident that this fun-filled interactive experience will be a great hit with

Dubai Parks and Resorts’ visitors, especially our younger guests as it’s packed with some of the best-known Lego

characters.” said Raed Kajoor Al Nuaimi, CEO of Dubai Parks and Resorts.

Emirates 24|7 had reported in March that even as the park is scheduled to open in October, a soft opening before

that month will offer select residents and visitors access to the park’s rides and attractions as part of its pre-

opening activities.

With this latest announcement, the park takes another step closer to completion. The family carriages of the new

indoor ride – located in Adventure, one of the park’s six themed lands – are equipped with high-tech laser

blasters.

Designed to represent the ruins of an ancient, fictional Egyptian temple, the ride’s storyline encourages young

explorers to go on an escapade through ruins to recover a pharaoh’s stolen treasure.

“We’re excited to unveil the Lost Kingdom Adventure,” says Siegfried Boerst, General Manager of Legoland Dubai.

“Having a mix of indoor and outdoor elements, it is the perfect year round attraction. As we draw closer to our

October opening and the finishing touches are completed, we look forward to continuing to share more details

about what will be the ultimate theme park for families and children in the region,” he said.

Legoland Dubai, together with Legoland Water Park, is part of Dubai Parks and Resorts which will also feature

motiongate Dubai – a unique theme park showcasing some of Hollywood’s most beloved characters from

DreamWorks Animation, Sony Pictures Studios and Lionsgate.

Dubai Parks and Resorts will also feature Bollywood Parks Dubai, the first ever theme park based on the sights

and sounds of Bollywood. The entire destination will be connected by Riverland Dubai – a retail, dining and

entertainment walkway and guests can stay at the Lapita Hotel, a Polynesian-themed resort catering to families.


Back to Index






DUBAI LANDLORD UNABLE TO REMOVE

DIVORCING TENANT ABANDONED BY

HUSBAND

WEDNESDAY, 04 MAY 2016

I own an apartment in Dubai and have been renting it out to the same tenant for almost five years. At the end of

the latest tenancy agreement, which expired on November 30, I expressed my desire to personally move in to the

apartment. As I wasn’t sure of my timeline and as he also needed some time to sort out his stuff, we moved to

signing several monthly contracts – the last one expired on April 30.However, I was surprised to receive a letter

signed by him on April 23 saying he had vacated the flat. He sent me the flat keys and parking card alongside the

letter. I then received a call from his wife saying that she and her husband (the tenant) are going through a

divorce case in court and that her husband left her and her son and ran away. She refused to vacate the flat and

said she has nowhere to go and no money to pay. I should mention that her husband cleared up everything

before leaving. He requested a final Dewa bill and sent an email to the AC company, asking them to disconnect

the chiller by the end of April. I’m now stuck as no one is helping me vacate this lady. I went to the tenancy dispute

centre, the police and notary services. They asked me to go to court and file a case against the husband, during

which the wife would remain in the apartment and pay me rent.AW, Dubai

Reading through your timeline, it struck me that you never officially sent a notification of eviction to the tenant.

The agreement to vacate was just verbal and although you both had mutually agreed month-to-month

extensions, not having anything in writing may now cause you problems in getting possession of your property. I

assume the tenancy contract was just in the name of the husband, so now that the wife wishes to stay it could

mean that you will have to start the process all over again, only this time legally (in writing) and now with her. To

get possession back for reasons of moving in yourself, you will have to give her a 12-month notification to vacate

sent via notary public or registered mail. A new tenancy agreement to cover the 12 months will also have to be

drawn up. Your other option is to take the tenant to court. This could be costly and will also take time. Winning a

case like this is also not guaranteed, given the present occupants are a wife and child and victims of circumstance.

I believe your best choice would be to organise the 12 months’ notice which, while this will take the year to

conclude, will show your compassion.

I am currently living in a two-bedroom apartment and the tenancy is due to expire next month. In February I

received notice from the landlord that the rent would be increased by 15 per cent. According to the Rera rent

calculator, there should be no rent increase. I replied back stating that I am happy to renew as per Rera rules. A

week later the current landlord sent a notice from a lawyer (notarised) stating the intention to sell the unit and

that I should vacate the apartment by June 2017. Then I received a notice that my apartment has been sold and

that I should contact the new landlord. What are my options? Do I have a legal contract? This is needed for visa

purposes, so any delays from a new landlord will result in a problem. Will I renew for one year from today or after

the expiry of my initial contract in June? What if I do not wish to continue with the new landlord? Can I leave on

the date as per my original contract? SF, Dubai

If a property is sold during a period when a tenant resides within it, the new landlord takes over the existing

contract with all the same terms and conditions. It is advisable to meet the new landlord to ascertain what his






intentions are. Your renewal will be from the date of your original contract should you decide to stay. Remember

that any changes to the contract have to be communicated in writing at least 90 days before the expiration of the

agreement. Given this time frame has now passed, no changes will therefore be allowed on the contract.


Back to Index






DH7.2M HIDD AL SAADIYAT VILLA AT THE

CHEAPER END BUT IN A STUNNING

LOCATION


There are few housing estates in the world where the cheapest home you can buy is on the market for a

whopping Dh7.2 million.

Despite splashing out a sum equating to US$1.96 million, whoever buys this four bedroom villa in the Abu Dhabi

beachfront development, Hidd Al Saadiyat, might find it difficult to keep up with the Joneses living in the gated

community.

Given that the largest villas in Hidd Al Saadiyat measure more than 29,000 square feet and are being marketed for

around Dh40 million, the neighbours are likely to be some of the richest and best connected people in the

country.

Located on a long thin spit of land at the far end of the capital’s cultural district, Saadiyat Island, the new

development is made up of 461 mansions. This particular beach villa has a partial sea view and is just a few

minutes walk to breathtaking white sand beaches on either side of the land strip.

In December, when developer SDIC starts handing over the new villas, Hidd Al Saadiyat’s residents and a few

nesting turtles will be the only inhabitants entitled to cavort on the seven kilometre private beaches says Greg

Slingerland, Hidd Al Saadiyat’s project director.

Certainly this 4,725 square feet home includes most of the mod cons one would expect for a villa in its price

bracket. Set on a 6,780 square foot plot, it comes with a generously sized garden, a barbecue deck and a

swimming pool. The bedrooms are all en suite with a sizeable rain shower and wet room in the master bathroom

and all the bedrooms include large built-in wardrobes.

Other features include a maid’s room, a double garage and the kitchen is fully fitted to include Miele appliances.

The home also has smart controls, enabling its inhabitants to remotely change the temperature and lighting and

even open the curtains.

But no matter how smug the owners may feel about their electric curtains, they will always know that just a few

feet away, their more wealthy neighbours will have something bigger and better.

Mr Slingerland says that some of the largest villas in the development have been custom built with 2,000 square

metre basements including salons, barber shops and private cinemas.

Q&A

What is Hidd Al Saadiyat?

Hidd Al Saadiyat is a 1.5 million square metre beach side development on Saadiyat Island in the capital being built

by the private Abu Dhabi based developer SDIC. The first phase of 461 villas is due to be handed over from

December this year and construction of a second phase including a marina for 110 boats is currently underway.






How far along is the project?

This week the developer announced that the project’s key infrastructure work was nearly finished with all the

underground services including water, sewerage and electrical cables installed. All electrical substations and lifting

stations are completed, the main roads have all been paved and all light pole bases and electrical cables have

been fitted.

Is it sold yet?

SDIC says it has sold all but around 50 of the villas in the first phase of the project. However, the majority of those

left are the ones in the cheaper price bracket because it has built more of them. Local estate agents are also

competing with the developer to sell a number of homes in this price bracket - which had been purchased off

plan.

Is building a bunch of expensive properties on a thin strip of sand a good idea?

Project manager LEED has built a series of stone flood defences to enable the homes to be built along the beach

without fear of them getting washed away. Flood defences also include a long groyne of rock which means that

the sand from further up the island is retained.


Back to Index






DUBAI’S LUXURY HOTELS FULLY BOOKED

FOR LONG WEEKEND


This three-day weekend is proving a boon for hotels in Dubai.

Resorts including Waldorf Astoria the Palm, Rixos the Palm and Sofitel Dubai The Palm –- as well as the Sofitel’s

luxury apartments – are sold out, with no rooms available as of yesterday morning.

The 300-room Amwaj Rotana on The Walk at Jumeirah Beach Residence is fully booked for the long weekend and

a good number of the guests are from within the UAE, said a spokeswoman for the hotel.

“One of the big reasons for the good occupancy this year is the weather, it is still pleasant to go to the beach or for

a walk," she said.

The bumper bookings are a welcome relief for the industry and comes at a time of slowing economic growth.

The global economic growth rate has been cut to 3.2 per cent by the IMF, with the UAE expected to grow at 2.4

per cent this year, its slowest since 2010.

Hotels in Dubai reported a 10 per cent decline in the average room rate during the first quarter at US$234.88

compared with same period last year, according to STR, the hotel data benchmarking company. Room rates have

been falling since last year because of increased inventory in the market.

“Even if we speculate that economy is slow, travel abroad is something people will cut first and spend holidays

locally," said the spokeswoman for Amwaj Rotana.

Properties on the Sheikh Zayed Road were also filling out fast for the long weekend.

At the 321-room Dusit Thani Sheikh Zayed Road, where rooms were still available starting at Dh700 a night,

occupancy is higher than last year.

“We have a good occupancy rate [for the holiday weekend this year] and better room rates than on other dates

expected for the rest of the month," said a spokeswoman for Dusit Thani.

At The H Dubai, the five-star property at No 1 Sheikh Zayed Road, only two rooms were available yesterday

starting at Dh1,200 a night, without breakfast.

Some of luxury properties that were still available had rooms starting at more than Dh2,000, such as at Jumeirah

Mina A’Salam and Jumeirah Al Qasr.


Back to Index






JACUZZI OR SAUNA? DAMAC LAUNCHES

HOTEL SPA VILLAS IN DUBAI’S AKOYA

OXYGEN


Emaar Misr posted a 47 per cent increase in first-quarter net profit as Emaar’s Egyptian arm benefited from a

housing market boom.

Net profit for the three months to March 31 surged to 254.5 million Egyptian pounds (Dh105.2m) from 172.7m

pounds in a year earlier, the company said in a bourse filing.

Emaar Misr, which is majority owned by Dubai’s largest developer, Emaar, reported that the increase in profits

came on the back of a 25.7 per cent fall in revenues. Emaar Misr floated on the Cairo bourse last year.

“These results reflect the strong Egyptian property market and that demand in Egypt is still growing," said Harshjit

Oza, the assistant director for research at Egypt’s Naeem Brokerage. “The fall in revenue is a function of the

timings of property completions so it is telling that Emaar Misr has been able to make more of a profit despite

fewer completions."

Despite Egypt’s stalling economy that has been hit by the country’s recent revolutions, the housing market has

flourished in the past few years as property developers struggle to build enough homes to supply its rapidly

growing population and as middle-class Egyptians seek to put their cash into an asset class they view as a safe

investment.

Emaar Misr is developing three prime housing estates: Marassi, a 624.8-hectare project on Egypt’s Mediterranean

coast, Uptown Cairo and Mivida, a green community in New Cairo.

According to the property broker JLL, prices for flats in the New Cairo district increased by 10 per cent between

the end of 2014 and the end of last year, while flats in the Sixth of October district increased by 14 per cent over

the same period.

The property boom has prompted Egyptian developers to build more houses to keep up with demand. Last year,

Emaar Misr launched 2,147 units, compared with 1,540 the previous year.

“The volatility of the Egyptian pound, together with historically high inflation rates, has attracted residents to the

property investment market in order to secure their money," said the property broker Colliers in its recently

published 2016 Cairo Market Overview.

Emaar Misr shares rose by 2 per cent in trading to close at 2.55 pounds.


Back to Index






UAE RIPE FOR STUDENT HOUSING


The growth that has taken place in the United Kingdom’s student population over the past 15 to 20 years has

quite literally reshaped cities, with purpose-built student accommodation (PBSA) providers either restoring old

buildings in industrial cities or reclaiming derelict sites and replacing them with student-filled towers.

Indeed, from being the preserve of a few specialist developers, student property has developed into an asset

class of its own and a wave of private equity and institutional cash has poured into the sector.

Figures provided by the law firm Addleshaw Goddard state that £6 billion (Dh32.22bn) of investment was made in

the UK’s student property sector last year – double the amount spent in the previous year and much more than

was invested in the bigger and more mature US market.

The reason for this has been the returns on offer. Yields for properties let directly to students – as opposed to

buildings controlled by academic institutions – stand at about 6 per cent, according to the property consultancy

Savills.

"In the UK, every year since the economic downturn, student accommodation has seen positive rental growth,"

says James Pullan, the head of Knight Frank’s UK student property business. "No other sector can say the same."

Mr Pullan says that two simple factors were shaping the market. Firstly, increasing affluence has led to a rise in

the middle classes across the world.

"There is increasing wealth from a range of different countries and one of the things they want to spend that

money on is their own children and investing in higher education."

The other is that there is a "structural undersupply of student accommodation", Mr Pullan says.

"Universities everywhere have not provided for all of their students. In the UK, most universities provide for up to

all of their first-year students and a proportion of their postgraduate students."

The rest often live in subdivided homes or flats originally provided for families.

One of the pioneers of the UK’s student property market was Nicholas Porter, who founded the Unite Group in

1991. Over the next 15 years, he turned it into the biggest student landlord in the UK, set up a huge investment

fund and floated the company on the UK stock market. By the time he stood down as its chief executive in 2006, it

had more than 3,000 staff.

Two years after his departure from Unite, Mr Porter settled in Dubai, which is now the base for his attempt to

replicate the model created in the UK on an international scale through his Global Student Accommodation (GSA)

Group.

It initially focused on the Australian and London market through a brand known as Urbanest but Mr Porter sold

his stake in that business to his former partners.

His focus now is on the Asian market, continental Europe and on Dubai, which he sees as a hub for higher

education with a catchment stretching from South Asia across the GCC and into Africa.

He says he recognised during 2006-2007 that the globalisation trend that had disrupted so many markets was

also taking place in higher education.






"When I started, there were 68 million people in higher education. We’re getting closer to 200 million now and in

the next 10 years we’ll have another 80 million or so coming in.

"And it’s truly globalising. There are brands of universities, who want to take education and learning to the world."

Indeed, a report published by Savills in October on the global student property market highlighted Dubai’s

importance in this regard.

"The greatest concentration of branch universities in the world is in Dubai," the report said, pointing to the more-

than 30 branch campuses of universities from 11 countries setting up a branch in the emirate.

The bulk of these are within two academic free zones – Dubai Knowledge Village and Dubai International

Academic City (DIAC). British universities had the strongest presence and about 60 per cent of the degrees offered

were in business-related subjects, "a field in which Dubai has become a specialist provider", it said.

GSA opened its first purpose-built student accommodation – a 424-unit block at DIAC branded as Uninest – in

February at a cost of US$30 million (Dh110m). It is now looking for a second site near Knowledge Village.

Mat Green, the UAE head of research at CBRE Middle East, says the bulk of accommodation built for students in

the country has been on-campus by individual universities for their own students. Also, so far, local universities

have required a smaller proportion of beds for students because more live at home – but there have been

occasions where demand has forced some universities to go into the mainstream residential market.

"The likes of Canadian University have taken space in Discovery Gardens," Mr Green says.

GSA has carried out its own research, which showed that the demand for student places grew by 8.5 per cent in

Dubai from 2002 to 2012, way ahead of global growth in higher education enrolments of 5.3 per cent. Dubai

Knowledge and Human Development Authority (KHDA) said student numbers grew by 13.7 per cent from 2013 to

2014.

GSA also found that 22 per cent of those who study at universities in Dubai had moved from another country to

do so.

The Savills report said that the proportion of international students attending branch campuses in Dubai is 57 per

cent of the total.

"Dubai has been successful in attracting students from other Middle East countries, Asia, and increasingly, Africa –

all huge potential growth markets," it said.

Mr Porter believes that purpose-built student accommodation provides one of the best ways of catering for this

growth.

PBSAs provide housing close to universities with all-inclusive services, which means students do not have to worry

about setting up Dewa or Etisalat/du accounts for utilities. There is also an on-site gym, swimming pool, roof

terraces and shuttle buses laid on to nearby campuses. Yet Mr Porter says it is the ability for them to become part

of a group of friends in a city where they may not know anybody that is most appealing, with communal areas for

watching TV and studying on-site.

Students can also adopt to share rooms within apartments – a twin-room in a multi-room apartment costs

Dh3,290 per month, a single room Dh4,643 and a studio apartment within Uninest costs Dh6,965.

"If you go and live in a block of flats, there’s no community," says Mr Porter.

"We know from research that one of the biggest reasons people drop out is isolation. Face time [with lecturers] is

less than it used to be years ago with lecture notes and stuff, and if you go back to a studio on your own and you

don’t mix with people, at a point of time, you will think, ‘What am I doing here?’"






He also says parents can be reassured their children are safe. Sleeping accommodation is gender-segregated and

controlled by access cards, and there is on-site security concerned with students’ well-being.

"If we don’t see a customer for a while, we’ll be anxious and want to know what’s happened. If you’re a parent,

you can always get hold of the front desk," Mr Porter says.

The first Uninest has been funded entirely through equity provided via a Global Student Accommodation Fund,

which Mr Porter created.

He says the first property was set up without raising external finance to prove the model can work. He believes

that it could attract much more investment from within the region.

"The strategy for here [Dubai] is to bed this down this year. We’re actively looking at other opportunities. We see

an investment programme of $200m in this market. But we want to be measured. It isn’t a rush.

"And from a Sharia point of view, we’re fantastic. We’re not having minibars with alcohol in them, we don’t stream

certain things down the TV. We have none of those issues. It’s a very good investment."

Mr Green agrees. "It’s pretty popular and it’s a good Islamic investment prospect potentially, which is why I think it

could gain some traction here. [PBSA] is relatively cheap to build and modular technologies would be suited to

this type of facility. So I think there are opportunities," he says.

Moreover, Richard Walsh, a director of Colliers’ National Capital Markets team in the UK, says that several

providers of purpose-built housing have been working with universities in the UK directly to build

accommodation, which is leased back to them. He cites Coventry University as one example and Oxford

University as another, with the latter recently agreeing to lease a block for 40 years.

Mr Walsh says that this type of deal is favoured by many investors because although yields are marginally lower

than renting directly to students, they are much less risky.

"The money that is coming into that sector is huge. UK pension funds are very keen. It’s a multibillion pound

business," he says.

Mr Walsh says it is also popular with universities as it means they do not need to find the capital expenditure

required to build accommodation blocks but still get to dictate how they are built, which therefore guarantees

standards.

"If accommodation is substandard because it’s run by the wrong type of landlord, that has a bad reflection on the

university. Here, you’ve got one system, so the whole [student] experience is controlled."


Back to Index






HIGHER SALES LIFT EMAAR’S Q1 PROFITS

BY 17% TO DH1.21BN

SUNDAY, 01 MAY 2016

Global developer Emaar Properties has recorded first-quarter 2016 net profit of Dh1.205 billion ($328 million), an

increase of 17 per cent compared to the net profit of Dh1.026 billion ($279 million) during the same period last

year.

Led by significant progress in construction of its projects, Emaar’s Q1 2016 revenue was Dh3.529 billion ($961

million), 17 per cent higher than the Q1 2015 revenue of Dh3.024 billion ($823 million).

Recurring revenues from the shopping malls and hospitality businesses during Q1 2016 were Dh1.555 billion

($423 million), 44 per cent of the total revenue.

International operations, led by the strong results primarily in Egypt among other markets, contributed Dh499

million ($136 million) to revenue, a growth of 44 per cent over Q1 2015 revenue and accounting for 14 per cent of

Emaar’s Q1 2016 revenue.

Mohamed Alabbar, Chairman of Emaar Properties, said: “Property sales in Dubai and other key international

markets have gained momentum, a testament to our differentiating strength in offering the right property of

choice for investors in premium locations.

“We are building on this positive trend by developing premium projects in exceptional locations, especially in

Dubai, to establishing the city as a global leader in all sectors, and to complement the preparations for the Expo

2020 Dubai. This is highlighted by the launch of the iconic new tower in Dubai Creek Harbour and the planned

opening of Dubai Opera in Downtown Dubai this year. Both will serve as magnets for investors and visitors.”

Alabbar added: “We are also launching a new Retail District in Dubai Creek Harbour and expanding The Dubai

Mall, in addition to rolling out 35 new hotels and serviced residences in Dubai and other international markets.

The sustained recurring revenue from these assets will help create long-term value for our stakeholders.”

Emaar has distributed a cash dividend of 15 per cent of the share capital, equivalent to Dh1.074 billion ($292

million)

Property sector growth

Emaar recorded Q1 2016 revenue of Dh1.974 billion ($537 million) from its property business, 32 per cent higher

than the same period in 2015.

In Q1 2016, Emaar has recorded strong sales of Dh5.151 billion ($1.402 billion), a growth of 41 per cent over Q1

2015, led by robust sales in Dubai. The value of sales in Dubai during this quarter reached Dh4.194 billion ($1.142

billion), 70 per cent higher than the first quarter of 2015.

In Egypt, where Emaar Misr, the subsidiary of Emaar Properties is listed on The Egyptian Exchange, sales during

the first three months amounted to Dh683 million ($186 million).

Property sales in Dubai were led by strong investor interest in Harbour Views at Dubai Creek Harbour, The

Address Residences Dubai Opera and premium Sidra villas in Dubai Hills Estate. Emaar has awarded construction

contract for Dubai Creek Residences in Dubai Creek Harbour and construction is progressing as per schedule.






Dubai Hills Estate has also evolved as a smart and green city with visitors treated to green avenues, serene lakes,

waterbodies and roads. Featuring a brand-new championship golf course, it has achieved significant progress in

construction. Premium villas have been developed that exude style and sophistication.

Building recurring revenue assets

During Q1 2016, Emaar Malls, the shopping malls and retail business majority owned by Emaar, recorded

revenues of Dh833 million ($227 million) and net profit of Dh529 million ($144 million), recording a growth of 22

per cent. Emaar Malls also distributed 10 per cent of the share capital, equivalent to Dh1.301 billion ($354 million),

as cash dividend to the shareholders.

Emaar’s hospitality, commercial leasing and entertainment businesses reported revenues of Dh722 million ($197

million) during the first quarter of 2016.

The Address Hotels + Resorts, its flagship hotel brand, achieved 93 per cent occupancy rate during the first

quarter, higher than the industry average.

Emaar Hospitality Group is rolling out the first property under its new Rove Hotels, a contemporary midscale

hotel and residences brand developed as a joint venture with Meraas, in May. Rove Downtown Dubai, located

right next to The Dubai Mall and with direct access to restaurants along Mohammed bin Rashid Boulevard, will

feature 420 rooms.

With 196 million sq m of land bank in the UAE and key international markets, Emaar has assets valued at over

Dh165.7 billion ($45.1 billion).


Back to Index






WORKERS RIGHTS: UAE GETS TOUGH WITH

DISHONEST RECRUITERS, EMPLOYERS


The Ministry of Human Resources and Emiratisation has published the first annual report entitled 'Workers

Welfare Report 2015,' highlighting the labour rights in the UAE.

The 2015 report focuses on measures to ensure that all workers that come to the UAE "are recruited and

employed equitably, safe in their place of work, and free to advance professionally and personally."

The publication of this report is part of a drive to increase transparency about labour issues, improve data

reporting and ensure that discussion about the transnational labour mobility and economic development is frank

and fair.

In a forward to the 2015 Report, Saqr Ghobash, Minister of Human Resources and Emiratisation, said: "The UAE’s

workforce is our greatest asset: the driver for growth that enables economic diversification and secures the future

for tomorrow’s generation."

"The Ministry of Human Resources and Emiratisation is committed to ensuring our workforce is protected and its

dynamism is harnessed for the good of all. Therefore, the ministry has launched a series of initiatives and

resolutions to promote workers' welfare in the country, most notably, Standardising labour contracts in order to

promote clarity and transparency for workers and employers," he added.

He further elaborated that the ministry launched new laws that "Enable workers to move freely between

employers, as well as evaluating and reviewing every aspect of working in the Emirates from recruitment to

housing and making significant reforms designed to ensure all workers are treated respectfully at all times, and

able to report instances of maltreatment easily."

The minister said that MOHRE has appointed 63 legal professionals to help resolve labour disputes, and trained

100 members of staff to facilitate the process of dispute resolution. The ministry has also implemented a new,

dynamic smart inspection system to enable the inspectors focus their efforts on higher risk business

establishments.

Exponential growth

The report begins by describing the UAE’s exponential growth in recent decades as a global centre of commerce

and tourism which has been achieved thanks to the hard work of millions of people from all over the world.

People from all corners of the planet travel to UAE to contribute to its growth, putting their skills to use to build

and operate the institutions and infrastructure that are now the lifeblood of the national economy.

"The UAE is proud to host such a diverse, eclectic population. Proud, too, that at a time of economic slowdown in

many parts of the world, the UAE continued to create jobs and offer opportunities for people to better

themselves, and better the prospects of their families and home nations, which directly benefits some of the

world’s poorest communities, enabling access to health and education, created sustainable societies, and raised

standards of living in recipient countries".






The report goes on to say that UAE remains a young country undergoing dramatic change and huge economic

growth. That brings significant challenges in terms of the management of the labour market.

It is vital, however, that all workers in the UAE enjoy employment protections that conform to the highest

standards of international best practice and law, which is why the UAE Ministry of Human Resources and

Emiratisation is at the forefront of driving reform to protect workers. Only by upholding the reputation of the

nation as an equitable provider of employment and continue attracting the brightest and most skilled workers

from around the world.

The protection of workers is fundamental to the ongoing work of the Ministry of Human Resource and

Emiratisation, the report reads. Over the course of 2015, the Ministry undertook significant steps to ensure

worker protection, including reviewing legislation and regulatory oversight, improving dispute resolution systems

and increasing transparency.

"We can’t deny that many non-national workers have faced in the past many malpractices by recruitment agents.

Consequently, the Ministry of Human Resources and Emiratisation has been cooperating with countries of origin

to improve practices within the recruitment industry as a priority issue."

The ministry continues to closely monitor the practices of recruitment companies and take immediate actions

when violations take place. In 2015 the Ministry suspended the licences of recruitment agencies that violated

recruitment practices.

Transparency

Moving on to describe measures to enhance contract transparency, the report remarks that no employer in the

UAE can engage workers against their will or on terms that do not meet the UAE labour standards. All

employment contracts in the UAE must be consensual by nature and both parties have the right to terminate an

employment contract at any time, in accordance with the terms and provisions of the contract.

Under new standards, the Ministry holds employers responsible for attesting in the standard contract to the fact

that workers have not been charged any recruitment fees. In 2015, the Ministry took steps to ensure the contracts

workers are asked to sign are standardised, to prevent contract substitution and to promote clarity and

transparency.

The Ministry launched a package of reforms designed to promote transparency regarding fixed-term and

unlimited contracts. Henceforth, no non-national worker can be recruited from overseas for employment in the

UAE until he or she has been presented with a standard job offer that conforms to the UAE Standard Employment

Contract (SEC).

Job offer

The standard job offer is available in eleven languages and must be signed in the employee’s country of origin

before his or her work permit can be processed. The Ministry also works to ensure that all workers obtain a copy

of UAE employment law without charge, so that they know their rights.

The Report goes on to assert that the UAE has struck partnerships with international organisations, and works

closely with the governments of labour sending countries to ensure that their citizens are protected while in the

UAE.

The report elaborates that the Ministry of Human Resources and Emiratisation recognises that "a vital step in

ensuring worker welfare is making sure workers are aware of their labour rights."

The Ministry ensures that workers throughout the country have easy access to government representatives at

conveniently located Labour offices. Workers are encouraged to visit a Labour office at any time to report






concerns or to ask for guidance on any issue. There are five Labour offices in the UAE: two in Abu Dhabi, two in

Dubai and one in Sharjah.

Additionally, Ministry representatives carry out frequent site visits to promote awareness of worker rights. In the

summer of 2015, the Ministry’s Guidance department made thousands of site outreach visits to stress to workers

and employers the importance of the midday break for worker welfare. The meetings were also a useful occasion

at which to listen to worker concerns regarding heat exhaustion and employment conditions.

During such visits, the Ministry printed out and distributed thousands of awareness-raising posters highlighting

the dangers of midday work, translated the ministerial resolution ‘Prohibiting midday work’ into ten languages

and published the resolution on the Ministry’s website. The Ministry has also translated the administrative

resolution Number 60 detailing midday working hours law into three languages.


Back to Index






WHICH SERIOUS VIOLATION IN DUBAI CAN

GET YOU FINE OF DH100,000... CLICK HERE

SUNDAY, 08 MAY 2016

Developers in Dubai are being asked to monitor and inform apartment owners to stop short-term lettings in their

buildings, according to a notice issued by Dubai Tourism.

“Your involvement as developers is essential for the ease of implementing the regulation, therefore we would like

you to monitor short term rental operations in your developments and put signage in the buildings entrances

informing owners that using their properties as holiday homes is not allowed unless they have the required

permits,” the notice with Emirates 24|7 states.

“Owners who like to lease their properties on short-term basis should get their properties registered with

Department of Tourism and Commerce Marketing (DTCM) to ensure that the guest’s transition to the building is

smooth and the house rules are implemented,” it adds

DTCM will be issuing permit for each unit, indicating the property and the management company details for

verification purposes.

Decree and fines stipulated

A regulation issued under Decree No. (41) of 2013, regulating the activity of leasing out holiday homes in Dubai,

stipulates offenders can face fines of up to Dh100,000 if they have repeated the same violation within one year

from the date of the previous offence.

“The amount of the fine will be doubled, provided the fine does not exceed Dh100,000. The Chairman of the

Executive Council will determine, pursuant to a resolution issued by him in this regard, the prohibited acts and

the fines to be imposed on the perpetrators of these acts,” states the decree.

Caught, first-time offenders will face a fine of not less than Dh200 and not more than Dh20,000.

Easing norms

Last month, , Dubai Tourism updated its regulations surrounding holiday homes allowing private home owners to

apply for a holiday home license without the need to go through an approved Dubai Tourism operator, providing

they meet all criteria.

In addition, tenants who are renting a property can also lease their accommodation as a holiday home with a

short-term permit, providing they submit a no objection certificate from their landlord and meet all Dubai

Tourism-specified requirements.

The move is part of Dubai's objective to further diversify and increase its hospitality offering in line with its

Tourism Vision to attract 20 million visitors per year to the emirate by 2020, and complements the positive growth

trends in the city's wider hotel and hotel apartment segment to cater to diversifying traveller demographics and

needs.

Dubai Tourism will regularly inspect registered homes - classified as Standard or Deluxe depending on their

offering - to maintain standards and issue penalties for non-compliance with regulatory demands.







Back to Index






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

Associate Director – Research and Consultancy

+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 19 - Asteco Property Management › eshot › newsbrief2016 › pdf › ... · damac...

Documents

Transcript of NEWS BRIEF 19 - Asteco Property Management › eshot › newsbrief2016 › pdf › ... · damac...