NEWS BRIEF 20 - Asteco Property Management · International City, Dubai Investment Park and Remraam...
Transcript of NEWS BRIEF 20 - Asteco Property Management · International City, Dubai Investment Park and Remraam...
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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 20 SUNDAY 17 May 2015
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REAL ESTATE NEWS UAE
EXPERT TALK ON THE UAE RENTAL CHALLENGE
DUBAI WHERE CHEAPEST TO RENT 1-BEDROOM IN DUBAI… CLICK TO FIND OUT
DUBAI DEVELOPER'S TOWNHOUSE PROJECT IN MUDON SOLD OUT DP'S ARABELLA TOWNHOUSE LAUNCH TODAY SEES QUEUES OF BUYERS
NO 4% FEE, INTEREST-FREE EMIS, PAY AFTER HANDOVER DUBAI STARTS GETTING AFFORDABLE HOME OPTIONS IN NUMBERS EROS TO VENTURE INTO REAL ESTATE MARKET
DUBAI FESTIVAL CITY MALL TO OPEN FIRST PHASE OF DHS1.2 BILLION EXPANSION
DUBAI PROPERTY PRICE INCREASE REMAINS SUBDUED IN THE FIRST QUARTER
LIVE NEXT TO DUBAI EXPO: DEVELOPER TO SELL UNITS FROM DH380,000 FREE WI-FI SMART PALMS NOW ON BEACHES
SKY'S THE LIMIT FOR DUBAI'S VERTICAL FUTURE DUBAI PLANS 'ULTIMATE AIRPORT' WITH RAIL INTEGRATION
UNION PROPERTIES FIRST-QUARTER PROFIT PLUMMETS 84% JUMEIRAH GOLF ESTATES TO DEVELOP MID-MARKET HOMES AROUND RACE
TO DUBAI COURSE DUBAI LANDLORD UNABLE TO TRACE TENANT OR RENT CHEQUES FOR NINE
MONTHS DUBAI BUILDER ARABTEC REPORTS SURPRISE FIRST-QUARTER LOSS FROM
CONSTRUCTION SLOWDOWN ALDAR FIRST QUARTER PROFIT UP 36% AS IT BENEFITS FROM HIGHER RENTAL INCOME
ABU DHABI
ABU DHABI'S REALTY DYNAMICS WORK AT DIFFERING SPEEDS
SHARJAH THREE-YEAR RENT LOCK-IN A BLESSING FOR SHARJAH TENANTS:
CLUTTONS
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WHERE CHEAPEST TO RENT 1-
BEDROOM IN DUBAI… CLICK TO FIND
OUT
SUNDAY 17 MAY 2015
The cheapest place to rent a one-bedroom apartment in Dubai is in the Arjaan master development,
according to the Real Estate Regulatory Agency’s (Rera) rental index’s second update.
One-bed units in the development are available from Dh35,000 to Dh45,000 per annum (pa) followed by
International City, Dubai Investment Park and Remraam where rents range from Dh40,000 to Dh50,000
pa.
Lease rates in SkyCourts, Dubailand, were between Dh45,000 and Dh55,000 pa.
In Dubai Silicon Oasis, rates ranged from Dh50,000 to Dh70,000 pa, while in Discovery Gardens rental
prices were Dh60,000 to Dh75,000 pa.
Earlier this month, MoveSouq.com and FlatReviews.com said in their first quarter 2015 report that an
increasing number of tenants were moving to Dubailand, driven primarily by affordable rentals.
It put rents for studio units at Dh35,000 to Dh45000 pa; one-beds Dh45,000 to Dh55,000 pa and two-
beds Dh60,000 to Dh75000 pa.
The costliest one-bed units, as per the second index update, are in Burj Khalifa, the tallest tower in the
world, with rentals ranging from Dh160,000 to Dh180,000 pa, followed Palm Jumeirah which ranged
between Dh130,000 and Dh160,000 pa.
In Dubai Marina, one can rent a one-bedroom unit from Dh90,000 to Dh120,000 pa, while in Downtown
Dubai it is between Dh100,000 and Dh120,000 pa.
Emirates 24|7 reported last week rents have remained stable in the second update of index.
However, a comparison done by this website of the first update of 2015 with the last update of 2014
revealed a rental increase of six to 25 per cent across some of the master communities.
The index is updated every four months by Rera, which is the regulatory arm of the Dubai Land
Department.
In December 2013, the Dubai government issued Decree No. 43 of 2013 concerning the percentages of
maximum property rent increase that are allowed upon the renewal of tenancy contracts.
The rent increase slabs are as follows:
# No rent increase if the rent of the property unit is less than 10 per cent of the average rent of a
similar property in the same residential area.
# If the rent value is between 11 and 20 per cent less than the average rent of a similar property, the
maximum rent increase shall be equal to 5 per cent of the rent value.
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# If the rental value of a unit is between 21 and 30 per cent less than the average rent of a similar unit,
the maximum rent increase shall be equal to 10 per cent of the rental value.
# If the rental value of a property is between 31 and 40 per cent less than the average rental of a
similar property, the maximum rent increase shall be equal to 15 per cent of the rental value.
# If the rental value of a property unit is less than 40 per cent or more of the average rent of a similar
unit, the maximum rent increase applicable is of 20 per cent.
The average similar rental value of the property will be determined by the Real Estate Regulatory
Agency's rent index, the decree states.
Source: Emirates 24/7
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DUBAI DEVELOPER'S TOWNHOUSE
PROJECT IN MUDON SOLD OUT
SUNDAY 17 MAY 2015
Dubai Properties, the real estate arm of Dubai Holding, has sold out all the units released during the
Saturday's launch of Arabella Townhouses, a project within Mudon community, a company spokesperson
told Emirates 24|7.
"We sold out all units launched today and additional units were released for sale due to strong demand,"
the official said.
Over 100 units were released on Saturday, the launch date, with this website reporting that people had
queued up outside the company’s sales office much prior to the launch.
Prices start at Dh1.5 million, with payment plan of 10 per cent on booking, five per cent every six
months and 70 per on handover, sources said. The project is slated for completion in 2018.
The new townhouses - three- and four-bedroom units, ranging from 1,984 to 2,603 square feet - will be
positioned close to the Mudon Central Park, making it an ideal community for families, the developer
said.
The 41-acre Mudon Central Park will include a 1.5 kilometre jogging track, a cycling track, sports courts,
outdoor exercise stations, water play areas, retail stores, kids zone and garden pavilions.
Plans for a 64,000 square feet community centre are currently underway for Mudon and will include a
swimming pool, gym and a mix of retail outlets, the developer said, adding a school will open by
September 2016.
Source: Emirates 24/7
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DP'S ARABELLA TOWNHOUSE LAUNCH
TODAY SEES QUEUES OF BUYERS
SATURDAY 16 MAY 2015
Long queues were witnessed outside the sales office of Dubai Properties, the real estate arm of Dubai
Holding, which is launching ‘Arabella Townhouses’, its new project within Mudon community today
(Saturday), people at the venue told Emirates 24|7.
“There have been hundreds of investors standing outside the DP’s sale office for the past one day. It
seems the developer will be able to sell all the units within few hours of the launch,” RS, an investor
standing in the queue, told this website.
According to industry sources, the developer was planning to sell hundreds of units on launch date.
Prices start at Dh1.5 million, with payment plan of 10 per cent on booking, five per cent every six
months and 70 per on handover, sources said. The project is slated for completion in 2018.
The new townhouses - three- and four-bedroom units, ranging from 1,984 to 2,603 square feet - will be
positioned close to the Mudon Central Park, making it an ideal community for families, the developer
said.
The 41-acre Mudon Central Park will include a 1.5 kilometre jogging track, a cycling track, sports courts,
outdoor exercise stations, water play areas, retail stores, kids zone and garden pavilions.
Plans for a 64,000 square feet community centre are currently underway for Mudon and will include a
swimming pool, gym and a mix of retail outlets, the developer said, adding a GEMS school will open by
September 2016.
Source: Emirates 24/7
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NO 4% FEE, INTEREST-FREE EMIS, PAY
AFTER HANDOVER
WEDNESDAY 13 MAY 2015
As more and more developers announce projects in Dubai, companies are now focusing on offering
investors freebies and flexible payment plans that run post unit handovers.
In its 'Wealth Gauge' report in March, Mashreq, a top bank in the UAE, said real estate development
with innovative payment plan was the need of the hour and back-loaded schemes especially for off-plan
properties whereby developers demand chunk of the payments to be made only after the unit is handed
over were in demand.
Joining the array of developers is Deyaar Development, a Dubai-bourse listed developer has announced
a one-day sale event on May 16.
At the event, it will waive off the 4 per cent Dubai Land Department registration fee for those buying
units in their ready projects in Business Bay, International Media Production Zone and Dubai Silicon
Oasis.
Investors will have to pay a 5 per cent down payment and will get instalment plans for up to five years
and free property management for two years. Possession of the unit will be on payment of 30 per cent
of the unit price.
“The UAE and more specifically Dubai have grown to become more than just a transit place for expats,
but rather a place to settle,” company Vice-President Sales, Nasser Amer, said in a statement.
“The event will allow us to extend attractive and affordable deals that will enable potential investors and
end users to realise their aspirations of owning their dream home in Dubai,” he added.
In its sales pitch for the upscale Anantara Residences on Palm Jumeirah Crescent, Raine & Horne, a real
estate brokerage firm, said it was offering investors with a guaranteed return on investment (ROI) of up
to 13 per cent for five years, interest free payment plans for five years and a seven-day complimentary
stay at Anantara Luxury Resort every year.
GGICO Properties, a Dubai-based real estate service company, has come out with a 30/70-payment plan
for Topaz Residences in Dubai Silicon Oasis and is providing buyers with a three-year payment plan at
zero per cent interest from completion.
In the Royal Estates development in Dubai Investment Park, a project developed by Aristocratic Star,
Pacific Ventures and Texture Holding, investors can book units by paying a 10 per cent down with the
balance being paid over 4.5 years of nearly Dh3,600 per month installments.
As for the Glitz 3 tower in Dubai Studio City, Danube Properties, the real estate developer, has adopted
the one per cent per month payment plan.
Investors can pay 10 per cent down payment, 15 per cent in the next 60 days followed by 25
instalments of one per cent of the unit value per month till handover and 50 instalments of one per cent
of the unit value per month after handover.
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“We have also worked out a payment plan that in no way burdens the end user who will pay only one
per cent of the unit price on a monthly basis,” company Chairman Rizwan Sajan told Emirates24l7 at the
launch of Glitz 1 and 2 towers.
Source: Emirates 24/7
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DUBAI STARTS GETTING AFFORDABLE
HOME OPTIONS IN NUMBERS
SATURDAY 16 MAY 2015
The Dubai freehold property market’s yawning gap in affordable homes is being addressed — a
developer has launched the first phase of a project, branded MAG 5, in Dubai World Central that will
eventually see it create more than 3,000 homes there. The first phase will feature 1,118 units spread
across mid-rise apartments, with launch prices starting from at Dh499,000 for a one-bedroom.
This phase — expected to cost around Dh800 million — is scheduled for handover in 2018. There will be
13 ground plus six storey buildings.
If more developers come out with similar priced projects and convince more residents that now is the
time to buy, it could have a decisive influence on the rental market too in the next two years.
“Our estimate suggests that 70 per cent of Dubai’s resident base remain cut off from the freehold
property market, principally because values are seen as out of reach for them,” said Talal Al Gaddah,
CEO of MAG Property Development. “We have conceived and priced MAG 5 as a development where the
salaried workforce can make the switch to living in rented homes to buying their own.”
To make that happen, the developer is offering direct financing, by which 24 per cent will need to be
paid in the first 12 months, including 10 per cent as down payment. The remaining can be spread over
52 months, including 24-30 months post-handover. (For MAG, it is also the first venture into the
affordable category, having focused entirely on premium and super-premium high-rises for its
developments until now.) “These payments made to us will carry 0 per cent interest and the way we see
it, being transparent on the payback schedule and rates are critical to convince mid-income buyers to
finally buy,” said Al Gaddah, who added the land was acquired “recently”. “All of the units are priced in a
way where upfront payments can be met by buyers’ equity, but does not prove a financial burden on
them.”
The developer also has set strict rules on ‘bulk bookings’. Buyers can still go in for multiple unit
purchases, but will have to hold on to them until the project’s handover. In other words, flipping is not
on. “The project could interest organisations to buy units for their staff residences, which is why we
have not put a blanket ban on bulk buys,” said Al Gaddah. “But there will be no trading in these units
during the build out phase.”
On when the subsequent two phases will be launched, the CEO said they will take a call on this going by
the sales response to the first. Al Gaddah reckons that sometime in the next six months would be a
doable. Each phase will add 1,000 units plus.
The MAG 5 launch should also consolidate Dubai World Central’s emerging status as the go-to location
for projects skewing towards affordability. Developers have been unanimous in stating that land
valuations at any of the existing infrastructure-ready locations make it impossible to price their project
for a ‘budget buyer’.
Source: Emirates 24/7
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EROS TO VENTURE INTO REAL ESTATE
MARKET
THURSDAY 14 MAY 2015
Eros Group, a Dubai-based consumer electronics retailer, is entering the real estate market in bid to
diversify its portfolio and boost profits.
“We are looking at a different model in real estate development. We will fund the project, and if we don’t
get buyers, we will complete the project and sell the units,” Deepak Babani, CEO of Eros Group, told
Gulf News in an exclusive interview.
“We are looking at the land bank, labour camps, villas segment and apartments,” he said.
The company in 2013 ventured into food business by taking the franchise of Scottish chain Baguette
Express as a new avenue for growth and opened four outlets in Dubai.
“We are still getting our foot on the ground in the food business and are far away from profitability, but
we will be there. We are looking at one or two more outlets but we are not getting the right spot,” he
said.
Babani said that real estate is a profitable business and the average return on investment in a project is
around 70 per cent and the time frame is around two-and-a-half years.
When asked whether Eros will launch an initial public offering (IPO) to raise cash, he said that the group
has internal resources to raise cash and sees no need for a share sale.
“We have good relations with banks in the UAE,” he said.
The group, which controls around five to six per cent of the total consumer electronics market in the
UAE, sees some challenges in the current scenario of the market.
He said the UAE consumer electronics market is expected to grow between 10 and 12 per cent this year,
same as last year, due to the impact on flat TV panel sales.
“The fall in TV sales started from India customs duty hike on TV exports and the panel market is going
down. But smartphone sales are going to grow by 35 per cent and tablet market by around 12 per cent
this year,” he said.
Babani said that the changes people are making on new technology are not as rapid as the industry
expected.
Last year, the panel sales did not grow as Eros expected. The growth for the company came from
mobiles and small home appliances. Number of TV panel sales was less but in terms of value, it was the
same as in 2013.
He said that air purifiers, a new category, had growth of about 100 per cent as people are getting more
conscious on air quality. The market size is still small.
The group expects revenues to jump by nine per cent this year to Dh4.8 billion compared to Dh4.4
billion last year, due to the drop in oil prices and the rouble effect.
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Tourism has an “impact” on consumer electronics sales in the UAE.
In 2013, he said that re-exports to Egypt and Libya markets was hit badly. Re-exports to Iraq have been
going down for the past three years. Re-exports contribute about 20 per cent to the group’s total
revenues.
“We could look at setting up stores if sanctions on Iran are lifted. It will be a big bonus. It may or may
not happen but directions are positive,” Babani said.
“We are planning to open three more outlets in Dubai and looking for the right space in malls,” he said.
Source: Emirates 24/7
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DUBAI FESTIVAL CITY MALL TO OPEN
FIRST PHASE OF DHS1.2 BILLION
EXPANSION
MONDAY 11 MAY 2015
The area that serves as the mall's main atrium will be bigger and has been fully redesigned, extending
right out to the waterfront. There will be some 25 new retail stores opening at the same time.
The new shops to start trading on May 14 include: OMEGA, Koraba, Damas, Victoria's Secrets Beauty &
Accessories, Jo Malone, Pink, Kiehl's Reiss, Starbucks, Teavana, Banana Republic, Lacoste, Kazar, DKNY
Women, Brooks Brothers, L.K. Bennett, Marella, Molton Brown, L'Ocittane, Make Up For Ever, MAC, Troll
Beads, Police, Fleur D'amour and Toscow.
Chris O'Donnell, Group Director, Al-Futtaim Group Real Estate, said: "The expansion programme will
deliver an increased functionality in the retail layout and circulation within the mall by positioning the
right retailers at the right locations. It will also create more gross leasable area, enhance the mall's F&B
offering and maximise its unique waterfront location."
The malls' expansion programme also involves redesigning and landscaping of the waterfront
promenade and the launch of a new 3,500sqm food court that will offer 24 restaurants with a combined
capacity of more than 2,000 seats and featuring Dubai's only free supervised play area for children.
Furthermore some 65 more stores will open by Q4 2015.
Brad Merchant, General Manager of the mall, said: "Many regional and international retailers have
bought into our plans and have committed a growing number of stores to Dubai Festival City Mall as
they are aspiring to expand their critical mass alongside our unique waterfront location on the banks of
Dubai's historic Creek."
The expansion programme, once completed by the end of 2015, will have a total of 420 stores with
redesigned waterfront, festival square and retail stores.
From 10am on Thursday, visitors will have the chance to win prizes and take part in family-friendly
activities during the opening.
Source: 7 Days
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EXPERT TALK ON THE UAE RENTAL
CHALLENGE
SUNDAY 10 MAY 2015
Mario Volpi, managing director of Ocean View Real Estate, answers the key questions...
My landlord has asked for a rent increase, which I think is unfair. What can I do?
The first thing to do is to check what the RERA rental calculator states should be the going rate for the
location, as well as the type and size of the property. To do this, log on todubailand.gov.ae.
What is the next step?
There are six fields that need to be filled in. Firstly, the tenancy contract date then the main area
location of the property, (in most cases this will be found under the freehold option), followed by the
actual location of the property, which can be selected by the drop down menu. Next, select the number
of bedrooms and lastly the current annual rent. Once all of the above has been done, click on the
calculate rental increase button. The result will show exactly how much (if any), your landlord will be
able to charge at the next renewal. This figure will be based on a percentage of the average rent for the
precise property in the chosen area.
When Is my landlord entitled to ask for an increase?
For a landlord to qualify for a rental increase there is one extra, very important point any tenant has to
keep in mind, notwithstanding what the RERA rental calculator states the rent should be. The landlord
must notify the tenant of any changes to the new contract giving at least 90 days’ notice in writing to do
so. This obviously would include the rent.
In fact, NO changes by either party can be made to the existing agreement or terms and conditions
without this written notice period given. This goes for both parties and there has to be mutual
agreement too. So if the landlord has missed this window then no changes can be made to the new
contract irrespective of what the landlord wants or what the RERA rental calculator states is the going
rate.
Will the law protect me?
Most landlords will find the above most unpalatable if they cannot raise the rent to the level that the
calculator states, but law 33 of 2008 (which is the law that governs the relationship between tenants
and landlords) is clear.
What if my landlord will not listen?
Some landlords will try to increase the rent by more than the permissible amount the rent calculator
states is allowed. If a tenant finds himself in this situation, and no amount of negotiations between the
parties will reach an agreement, then the tenant will have no alternative but to file a case at the rental
dispute committee in Deira.
Is that not time-consuming and costly?
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Filing the case will cost 3.5 per cent of the rental amount and the losing party normally ends up footing
this bill. The whole procedure is quite simple and should be concluded within 30 days. It is important to
remember that the tenancy contract has to be registered at Ejari in the first place, this is a legal
requirement brought in by the government in the past.
Does it have to go that?
Tenants and landlords need to know their rights and exercise these rights too, so do not be afraid to
take the matter further should any person, whether landlord or tenant, face a situation that goes against
the law. But before any litigation takes place, it is important that both parties have tried to mediate to
resolve their differences as this is the first thing the rental dispute committee will try to do.
Source: 7 Days
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ABU DHABI'S REALTY DYNAMICS WORK
AT DIFFERING SPEEDS
THURSDAY 07 MAY 2015
Hospitality sector has been coming along nicely and should be one to watch out for Following on from
Cityscape Abu Dhabi, which got over on Thursday, I have focused this month's column on what's going
on in real estate in the capital.
In our keynote presentation at the show we analysed Abu Dhabi's progress against the 2030 vision and
the supply-demand dynamics for each real estate sector. While Abu Dhabi is making very sound
progress against the objectives of the broader 2030 Vision, we highlighted a few areas that require
further progress.
Overall, market conditions remained relatively stable in Q1. While a reduction in government spending
linked to the decline in oil prices slowed the pace of demand growth in the short-term, it is still
continuing, supply is relatively contained and market conditions are generally positive.
So here's a quick look at what is going on in each sector.....
Residential rental market
End-user demand has been strong, driven by new job creation as the government invests in major
projects such as airport expansion, new health care and education projects, and the development of free
zones. In addition, changes to policies such as the requirement for government employees to live in Abu
Dhabi rather than commute from Dubai, and the Tawtheeq regulations requiring registration of
tenancies, have further induced demand.
Quality supply remains limited, which led to strong growth in prime residential rents over the last two
years -- 17 per cent during 2013 and 11 per cent during 2014. A further contributing factor was the
removal of the rent cap, which previously restricted rises to 5 per cent per annum.
We expect there to be a reduction in government spending this year which will slow down the annual
demand growth rate. Given the current shortage of quality housing, we expect rental growth to
continue, but at single-digit rates.
Residential sales market
While the residential rental market was recording mid-teen percentage growth, the prime residential
sales market was racing away at 25 per cent annual growth. This pace is not sustainable, and we have
seen residential sale rates remain stable since Q4-14 -- largely due to a softening of investor sentiment
since the decline in oil prices and equity markets.
Provided current market conditions prevail, we do not anticipate much of a decline in prime residential
prices due to the relative shortage of available quality product.
Office market
Abu Dhabi's office market continues to recover. Prime office rents stabilised from mid-2012 to mid-
2014, and then increased 10 per cent in the second-half of 2014 as occupiers moved to upgrade their
space and vacancy rates reduced.
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Future office supply completions remain much lower than previous levels, with a high proportion of new
supply being owner-occupied or pre-committed. While we expect demand in oil-related and some
government sectors to reduce due to the decline in oil prices, given that supply pipeline is contained we
expect the market to remain stable.
Future growth is much dependent on government economic development initiatives to grow new
demand and increase private sector activity.
Retail market
There remains a limited supply of high quality malls relative to the spending power of the population,
with the opening of Yas Mall during Q4-14 being a welcome addition for resident and tourist shoppers.
Average rents and vacancy rates have remained stable for some time now.
The outlook is highly positive as shopping demand continues to increase from population, employment
and tourism growth. There are a number of super-regional malls in the pipeline which will cause the
market to become more competitive and downgrade lower grade malls. On the other hand, there
remains a major shortage of neighbourhood and convenience retail.
Hospitality market
The standout sector for Q1-15 was hospitality with a slight increase in occupancy rates and a 12 per
cent increase in room rates -- the first time operators have been able to increase room rates since 2010.
In recent years, there has been a steady increase in tourism arrivals, due to a range of ongoing
government initiatives to grow tourism demand -- including the expansion of Etihad Airways and the
airport, further enhancement of Abu Dhabi's leisure offering, and campaigns by the Abu Dhabi Tourism
& Culture Authority regionally and globally.
Unfortunately, the positive increase in demand has largely been offset by new supply coming through,
impacting on trading performance.
The pace of additions is now slowing down, yet tourism growth continues. Occupancy rates have been
pushing steadily upwards over recent years (now reaching 77 per cent) and we are now seeing
operators being able to increase room rates. Further growth is expected from 2018 onwards as a
number of projects come to fruition -- including the airport expansion, further expansion of Etihad airline
and the opening of major new visitor attractions.
Source: Gulf News
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DUBAI PROPERTY PRICE INCREASE
REMAINS SUBDUED IN THE FIRST
QUARTER
TUESDAY 12 MAY 2015
The newly launched Dubai Property Tracker from Emirates NBD showed a modest overall strengthening
in the Dubai property market, with real estate agents reporting slightly higher property values and rising
new buyer enquiries.
The survey, sponsored by Emirates NBD and produced by Markit, contains original data compiled from a
representative panel of Dubai real estate agents, alongside original survey data collected from a
representative sample of households living in Dubai.
Transaction volumes were broadly stable over the past three months, with survey data suggesting that
greater sales of apartments were broadly offset by a softer trend for villas.
“Amid a general slowing in real estate activity over the last year the Dubai Real Estate Tracker suggests
that the apartment sector is faring relatively better than the villa sector at the moment, which is
consistent with other transaction data year-to-date. Affordability in the villa sector appears to be the
main constraint on demand,” said Khatija Haque, Head of MENA Research at Emirates NBD.
According to the survey the 41 per cent of Dubai real estate agents signalled a rise in property prices
compared to 38 per cent who expects a fall. Latest data signalled a reduction in new international sales
enquiries, with agents citing heightened global economic uncertainty, more subdued risk appetite and, in
some cases, the impact of the stronger exchange rate on European investors.
The survey results are largely consistent with relative stability for Dubai property values as the mid-year
approaches while, across the rental market, robust demand patterns appear well entrenched.
Dubai real estate agents indicated that robust domestic demand, especially for apartments, helped to
support sales volumes and offset weaker external demand during the three months to April.
Despite lower international sales enquiries, the proportion of agents noting a rise in overall new buyer
enquiries (45 per cent) exceeded those reporting a reduction (37 per cent). Although villas saw a drop in
sales, which some agents linked to stretched affordability, this contrasted with rising interest for
apartments. Looking ahead, real estate agents are downbeat, on balance, about villa prices over the
next 12 months, while equal proportions expect higher apartment values (42 per cent) as those that
foresee a decline (42 per cent).
Dubai households are far more positive about price momentum, with 57 per cent expecting higher
property values and only 19 per cent anticipating a reduction.
The survey showed that on the lettings side of the market, strong demand for apartments helped drive a
robust upturn in rental volumes during the three months to April. Around 46 per cent of real estate
agents noted an overall rise in lettings, against just 26 per cent that experienced a decline.
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Looking ahead, a greater proportion of real estate agents anticipate falling rent prices over the next
three months (38 per cent) than those that forecast a rise (33 per cent). However, this contrasted with
households’ expectations for their own rents, with over half (57 per cent) expecting the price to rise at
renewal.
Source: Gulf News
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SKY'S THE LIMIT FOR DUBAI'S
VERTICAL FUTURE
TUESDAY 12 MAY 2015
"Going vertical is the future", said Abdullah Al Rafia, the assistant director general - engineering and
planning department at Dubai Municipality.
"Going upwards means we have less distances, less infrastructure. So Dubai, because of the expansion,
will need to go vertical. It is one of the vertical cities, and it will continue to go vertical".
The 101-storey Princess Tower in Dubai Marina is currently the world's tallest residential building.
But as to how many floors Dubai's skyscrapers of the future could extend to, Al Rafia, speaking at the
Smart Skyscrapers Summit in the emirate yesterday,
insisted: "The sky's the limit".
There were, however, no figures on how many skyscrapers there are in Dubai, nor what percentage
high-rise buildings consist of in the emirate's real estate.
Despite the recent fire at the Torch Tower in Dubai Marina, Al Rafia insisted there should be no safety
fears when it comes to the high life in the emirate.
"If we talk about safety then there aren't any safer skyscrapers than the ones in Dubai", he said.
"Although we are building skyscrapers, we have to keep in mind we are in a low earthquake zone, we
are in a low wind zone - that gives us a lot of safety when it comes to skyscrapers".
Meanwhile, Simon Lay, the director of fire engineering at AECOM, disagreed with one summit audience
member who suggested installing helipads on high-rises could be one way of evacuating people in
emergencies in the future.
"Relying on helicopters or specialist escape systems really isn't solving the problem. The two main
components of entering and exiting high-rises were still stairs and lifts".
Source: 7 Days
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FREE WI-FI SMART PALMS NOW ON
BEACHES
TUESDAY 05 MAY 2015
Smart Palms have started providing beachgoers free wireless internet access for the first time in Dubai.
The stations, shaped like palm trees, also display information on Dubai’s attractions, weather and other
topics.
They can be used to quickly charge mobile phones and tablet computers as well.
Dubai Municipality recently installed them on the beach next to Burj Al Arab Hotel and plans to cover all
open public beaches in Al Mamzar, Jumeirah and Umm Suqeim.
In April, the stations started sprouting in public parks.
Hussain Lootah, Director-General, Dubai Municipality, said the initiative is in line with the transformation
of Dubai into a Smart City.
Alya Harmoudi, Director, Environment Department, Dubai Municipality, said each Smart Palm can
support 50 users at a time over a radius of 53 metres.
She added that the stations can also display updates on events and activities on the beach and serve as
a public announcement system. They also show beach rules, guidelines, tips, and sea conditions.
Each Smart Palm runs entirely on its own solar power source and lights up at night for an aesthetic look.
Alya said public beaches have become a major destination for hundreds of thousands of people each
year.
Over the past year, the municipality has spent almost Dh100 million on beach and shoreline
development projects.
Smart Palms are the latest service to be added to a list of amenities for beachgoers.
The UAE-made stations, standing six metres tall, are the result of a collaboration between Dubai
Municipality, Smart Palm creators D Idea Media, du, Sun Tab Solar Energy and Promo Tech Gulf
Industry.
The initiative also comes in line with the UAE Cabinet’s decision to make 2015 the Year of Innovation.
The project took just ten months from conception to delivering the finished product. After receiving its
patent, Smart Palm began working with its partners who each contributed towards the overall
functionality of the product.
Lootah had said during last month’s unveiling of the Smart Palm: “Under the guidance of our leaders,
Dubai has developed an international reputation as a place for technology and innovation. Through
Smart Palm, the public will be able to benefit from free direct access to the internet while providing
valuable public information covering a range of topics including weather forecasts and orientation
guides. Most importantly, these structures are entirely self-sufficient thanks to their mono crystal solar
panels, which provide up to 21 per cent efficiency.”
Source: Gulf News
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LIVE NEXT TO DUBAI EXPO:
DEVELOPER TO SELL UNITS FROM
DH380,000
THURSDAY 14 MAY 2015
Year 2015 is fast becoming the year of affordable housing, with one more Dubai developer entering the
property arena with a product matching the market need.
In an emailed brochure to clients, MAG Property Development revealed plans to build ‘MAG 5 Boulevard’,
an integrated residential community in Dubai World Central residential district, adjacent to the Expo
2020 venue.
The development will have 13 ground plus six-storey buildings, housing 1118 residential units. Prices for
studio units start from Dh380,000, one bed units from Dh499,000 and two-bed apartments from
799,000 and three bed units with private garden from 1.399 million.
“Apartment prices start from Dh6200 per month,” the brochure states, adding, buyers will be offered
five year developer financing at zero per cent interest.
The project is slated for completion in 2018, the brochure states.
Emirates 24|7 reported on Wednesday how developers were waiving off four per cent Dubai Land
Department registration fees, offering interest free monthly installments and payment options post
handover of the units.
Mashreq, a top bank in the UAE, said in In its 'Wealth Gauge' report in March that real estate
development with innovative payment plan was the need of the hour and back-loaded schemes
especially for off-plan properties whereby developers demand chunk of the payments to be made only
after the unit is handed over were in demand.
In March 2015, Emirates 24|7 reported that Dubai Municipality (DM) had allocated over 100 hectares of
land for affordable housing in Muhaisnah 4, Al Qouz 3 and 4, mostly to meet the demand for dwellings
for people earning between Dh3,000 and Dh10,000 per month.
Khalid bin Kalban, Chief Executive Officer, Dubai Investments, a Dubai stock exchange-listed company,
also told this website that affordable housing market was going to outshine luxury market segment in
2016.
“I think 2016 onwards there will definitely be a pick-up in affordable housing because of the projects
being undertaken by the government such as the Al Maktoum International Airport, Expo 2020 venue
development and theme parks in Jebel Ali area,” he said.
Dubai is expected to create over 277,000 new jobs in the run up to the Expo 2020 and may witness an
undersupply situation rather than an oversupply.
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Moody’s Investors Service, a global ratings agency, has said the government spending on infrastructure
and encouraging more foreign investments in various sectors will support the real estate market over
the next five years.
The government has announced the new Dubai Metro Route 2020 project - an extension of the Metro’s
Red Line from Nakheel Harbour and Tower Metro station to the Expo 2020 site.
Source: Emirates 24/7
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DUBAI PLANS 'ULTIMATE AIRPORT'
WITH RAIL INTEGRATION
WEDNESDAY 06 MAY 2015
Dubai Airports has unveiled the expansion plans of Al Maktoum International at Dubai World Central,
boosting passenger capacity from the current six million passengers to 26 million by 2018.
Following phase 2 of the expansion, the ‘ultimate airport’ will hold a passenger capacity of 240m and is
expected to be completed in 2025.
Enhanced features would include downtown check-in facilities, rail integration and enhanced security
measures that facilitate security pre-clearance for passengers before they reach their final destination.
Unveiling the plans at the ongoing Arabian Travel Market exhibition, Dubai Airports CEO Paul Griffiths
also confirmed the new Concourse D at Terminal 1 of Dubai International was in its final stages of a $7.8
billion investment programme.
Griffiths said: “Concourse D is in its final phase of the $7.8 billion investment programme; we are going
to take it from the contractor in the next few weeks.
“Once opened, we will be able to accommodate 18m passengers annually.”
Linked to Terminal 1 via an automated people mover, the new concourse will be spread across 65,000
square metres, with 32 gates (21 contact stands, 11 remote).
Griffiths further explained: “Check-in for Concourse D will ferry passengers in a train of five carriages,
with 300 passengers at full capacity. The need to walk long to your gate will be eliminated.”
Incorporating an open-gate concept, the new Concourse will also serve 20 new restaurants, along with
hosting nine airline lounges.
The refurbished Terminal 1 will have 207 check-in desks and four over-sized baggage check-in desks
spread across six check-in zones for different airlines
The new Terminal 1 will also feature 15 per cent more check in counters, self-check in kiosks and in-line
security screening of baggage at check-ins, as well as 30 per cent additional counters for immigration
(arrivals) to ensure passenger comfort.
“However, with this we will eventually run out of expansion capacity at DXB International,” said Griffiths.
DWC expansion
Griffiths further revealed, Dubai Airports initial target was 100m passenger capacity by 2020, however,
the forecast was 20 per cent higher.
“Traffic projection sees the raw demand increase to 126m traffic; to accommodate that, DWC will have
to undergo a significant expansion,” he said.
Currently, the building is designed for 6m passengers, which is targeted to increase to 26m by 2018,
which Griffiths said would “facilitate the growth of DWC that will start the migration of airlines and
customers from DXB to DWC”.
He continued: “However, this is a prelude to DWC’s capability, which holds the ultimate space to turn
into an airport handling 240 m people per annum. We have the vision to be the world’s largest airport.”
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In a bid to “reinvent the airport experience”, the expansion design will see the emergence of airport
zones with circulation hubs, each handling 20m people at a time and connected by rail.
He continue: “When unveiled in its entirety, DWC will handle 120m passengers, large enough to handle
the Emirates Hub when it migrates from DXB to DWC. Our ultimate capacity remains 240m.”
Speaking further about the futuristic airport, Griffiths stated: “We are reinventing the airport experience.
Part of this will entail dealing with baggage before you arrive at the airport; the ability to check in
baggage before you leave in the taxi, so you arrive straight to the belt and your destination.
He added: “We will integrate rail travel into the new airport with downtown check-ins for your luggage
to be retrieved at the next destination.
“Enhanced security and immigration measures can include facial recognition, an enhanced digital
footprint.”
Quizzed whether security pre-clearance measures could be incorporated and Griffiths added: “While
Terminal 1 is largely an integrated experience, Phase 2 of DWC would allow us to facilitate pre-clearance
much like Abu Dhabi Airport offers for US passengers.”
Source: Emirates 24/7
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IS THE 'SECOND' DUBAI PROPERTY
CRASH ALREADY OVER?
SATURDAY 16 MAY 2015
Back in mid-January this year, I thought the world was coming to an end, again. Dubai World was due
to announce the results of its $14.6bn debt restructuring talks, and rumours were rife that a few of its
companies could be folded. This in turn would lead to a stock market meltdown, a second spectacular
property crash, and a couple extra years of deep recession in the emirate.
None of this quite happened, of course — Dubai World did file a “voluntary arrangement notification”
under Decree 57 of the Dubai legal code to help push through a deal by effectively using existing
bankruptcy legislation. But even though the net effect was positive, the word “bankruptcy” set alarm
bells ringing.
“If you have anything, shares, property, whatever you are holding, I would just sell in a hurry,” one
senior economic advisor told me at the time.
And as everyone living in Dubai knows, sentiment and herd effect is everything. If people think prices
are falling, they probably will start falling.
By February this year, fears were growing that we were on the cusp on a second property crash. For
every expert claiming things were stable, I could find another pointing to 25 percent property price
drops over six months in some parts of Dubai. Like any property crash, you only really find out it’s
happening after it’s started. Was this the start?
We are now in May. I’m happy to report that I think I may have been wrong, and all the people saying
the market was “correcting and stabilising” may have been right. The second crash that never quite was
has come and gone.
The Q1 2015 Dubai MarketView report by CBRE said that residential prices in Dubai fell by just 2 percent
in the first quarter. Interestingly, the report said the volume of residential sale transactions fell by four
percent in the first quarter compared to the year-earlier period although both transaction values and
volumes were up compared to the previous quarter. During the first three months of the year, total
sales transactions were valued at $1.73bn with 3,896 transactions completed. This compared with a
value of $1.2bn and 2,573 deals during the final quarter of last year.
In other words, more money was spent on property in the first quarter of this year than the last three
months of 2014. Not exactly a crash. This week also saw the launch of the Emirates NBD Real Estate
Tracker. Produced by Markit, it’s a pretty comprehensive effort. It is based on survey data collected from
two separate but complementary sources: real estate agents and households across the region. The real
estate agents’ segment is based on survey responses from a carefully selected panel of 70 real estate
agents in Dubai, covering trends for apartments and villas across the region. The Dubai household
survey is based on a representative sample of 600 households based in Dubai.
Measured overall, the proportion of Dubai real estate agents signalling a rise in property prices (41
percent) fractionally exceeded those noting a fall (38 percent). By housing type, this reflected modest
increases in apartment prices, while agents noted moderately lower values for villas in the three months
to April.
Now admittedly some agents might just be lying, though out of 70 even that shouldn’t skew the results
too much. The conclusion to be reached from all this data is that there is no second crash. On balance
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property prices (more so apartments than villas) are stable or even rising in some parts, and rental
values are definitely going up again in prime areas.
There could be many reasons – the report itself points to more sustainable funding patterns, a strong
pipeline of quality developments and rising population numbers. And let’s not forget Expo 2020.
I think it could be even simpler than that. Many people (and probably myself included) were so
convinced another crash was coming, we nearly started one. Thankfully we were wrong.
Source: Arabian Business
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THREE-YEAR RENT LOCK-IN A
BLESSING FOR SHARJAH TENANTS:
CLUTTONS
SUNDAY 10 MAY 2015
Sharjah’s three-year rental lock-in period is having a decisive impact on keeping landlords quiet with
their demands.
In fact, “with a growing awareness among tenants of their rights under Sharjah Municipality rules,
landlords are not willing to risk a loss of income by getting tied up in litigation on any irregular rent
rises,” according to a first-quarter market update from Cluttons , the property services firm.
Another factor that has stabilised rental growth is the relatively higher number of new apartment blocks
that became ready for occupation in the last 12 months and earlier. While in no way comparable to the
Dubai supply situation, new capacity continues to trickle into Sharjah’s residential space, easing the
earlier considerable pressure that was there on tenants, market sources added.
There was a heavy rush among prospective tenants whenever a new development started on the leasing
process. The rationale was that to get into a new one — even if at a slightly higher rental rate — than
succumb to their existing landlords’ “unreasonable” demands once the three-year lock-in is over on an
older property.
Landlords with ready projects or those months away from handover seem to have the better of the
exchanges. But the Cluttons report suggests changes even here — “The start of 2015 has seen a very
different picture emerge, with waiting lists for some previously highly sought centrally located residential
buildings shrinking.
Further afield
“There has also been a recent trickle of vacant units being returned to the market; something that has
not been seen for a number of years. This is being driven by tenants being lured to Dubai once more as
rents steady south of the border, as well as those moving further afield to Ajman.” (Ajman has seen
quite a few residential buildings getting complete and offering units at quite a discount to those
prevailing in Sharjah.) Such trends are strengthening the hands of those residents willing to stick with a
Sharjah base. They are “using the weaker demand as an opportunity to negotiate for little or no increase
in rents at renewal”, the Cluttons report notes. “Most landlords are succumbing to the risk of a void
period and leaving rents unchanged at renewal.”
Sharjah landlords are also facing the heat from developments outside of its borders. “The slowdown can
in large part be attributed to the dampening rate of increases” in Dubai, where the stabilisation of the
rental market is now rippling out towards Sharjah”, the Cluttons report adds.
“This is something we would expect at this stage in the property cycle and is therefore not surprising.”
All of this is a welcome respite after tenants were saddled with an average 24 per cent increase in their
rental bills at the end of last year.
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Source: Gulf News
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ALDAR FIRST QUARTER PROFIT UP 36%
AS IT BENEFITS FROM HIGHER RENTAL
INCOME
THURSDAY 14 MAY 2015
Aldar profit jumped by more than a third in the first quarter as the developer benefited from a surge in
rents from its flagship Yas Mall shopping centre and lucrative land plot sales.
Abu Dhabi’s largest listed developer said profits rose 36.4 per cent to Dh618 million for the first three
months of 2015 from Dh453m a year earlier.
Aldar said that profit from recurring revenue assets including Yas Mall, as well as the company’s 4,800-
unit residential portfolio, grew 61 per cent to Dh368m.
At the same time Aldar said that sales of two land plots in the Shams area of Reem Island and one in
Khalifa City had generated another Dh125m of gross profit. They will be built out as low-rise residential
buildings with ground floor retail, the developer said.
Still, overall revenues fell by almost a fifth. The company said the decline reflected a high level of
property handovers recorded on its The Gate project a year ago.
With few new housing developments completing, Aldar said that revenue from the development business
halved to Dh580m from Dh1.1 billion but that gross profit rose 137 per cent to Dh282m.
Advances from customers also fell slightly by 0.8 per cent to Dh411.9m.
“This time last year we had just started a big wave of handovers at The Gate. Now we’re almost 100 per
cent done, but the quality of the earnings we are attributing are significantly higher,” the Aldar chief
financial officer Greg Fewer said.
“This is our first 90-day trading period with Yas Mall and it’s really starting to demonstrate the earnings
power of our recurring revenues asset base,” Mr. Fewer added. “In 2015 we’re going to be showing you
a full recurring revenue asset base in place and let versus 2014 numbers, which didn’t quite have that
revenue base. And you’re starting to see comparatively speaking the earnings power of that recurring
revenues asset base – it’s large and its very significant and high margin.”
Aldar added that it repaid D1bn of loans in January, reducing the company’s gross debt to Dh8.2bn,
down from Dh9.2bn at the end of December. Aldar said that its overall refinancing over the past year
had led to a 59 per cent reduction in interest payments.
The company also disclosed that it was in arbitration with one if its contractors relating to a Dh300m
claim for “an extension of time and works performed and not paid”. The company declined to give
further details of the claim.
Aldar stock edged 0.36 per cent higher yesterday.
“By and large this is a positive set of results from Aldar,” said Harshjit Oza, an analyst at Naeem
Brokerage. “I think overall Aldar has done well in 1Q15, particularly in their investment property
portfolio. The share price has not reacted as the broader market has remained weak on disappointing
results from construction sector companies.”
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Source: The National
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DUBAI BUILDER ARABTEC REPORTS
SURPRISE FIRST-QUARTER LOSS FROM
CONSTRUCTION SLOWDOWN
THURSDAY 14 MAY 2015
A slowdown in the construction sector and lower oil prices led the UAE’s largest listed contractor Arabtec
to swing into the red and report a surprise Dh279.8 million first-quarter loss.
Company shares plummeted 9.8 per cent in early trading yesterday before recovering ing in the
afternoon to close 3.53 per cent down at Dh2.42 after Arabtec reported the loss, which compared with a
Dh137.9m profit a year earlier.
The results, which missed analysts’ expectations, mark the second consecutive loss Arabtec has
reported after the company announced a Dh94.4m loss for the final three months of last year.
Global Investment House had forecast Arabtec would make a quarterly profit of Dh95 million, while
SICO Bahrain had estimated a profit of Dh20.2 million, Reuters said.
It came on a slight increase in revenue, which grew to Dh1.79 billion, up from Dh1.78bn reported for
the first three months of last year.
But company costs ballooned to Dh1.93bn, up 28.6 per cent from Dh1.50bn last year. Arabtec blamed
the spiralling costs on its own “conservative accounting”, which it said it was adopting because of the
tough economic conditions it was facing.
The company said this was because of clients implementing contract clauses, downscaling and re-
prioritising projects to control costs as a result of falling oil prices and “economic and political
circumstances in the region”.
Arabtec did not say what projects or countries had been hit by contract revisions.
However, according to the analysis company Meed, contractors including Arabtec have been asked by
the master developer TDIC to submit revised offers to build both the Guggenheim and the Zayed
National Museum on Saadiyat Island in Abu Dhabi after original bids were submitted in August last year
and November 2013, respectively. “The construction sector in general and Arabtec in particular are
affected by low returns from commercial positions accrued on projects with developers, which has
prompted us to adopt a more conservative policy in announcing our projects’ profits and issuing our
financial results,” said Mohammed Thani Murshed Al Rumaithi, Arabtec’s new chairman.
“We are intensively following up the collection and negotiating on such commercial rights arising from
the variation orders and claims to the projects execution; however, in order not to face risk and market
volatility, and as a commitment to the principles of transparency with our shareholders and investors,
we have been conservative in preparing the financial results.”
The company said that the loss would not affect Arabtec’s capacity to work on its ambitious backlog of
projects, with a further Dh1.7bn of projects awarded during the first three months of the year.
However, analysts disagreed.
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“As it stands looking at the existing liquidity, Arabtec don’t have the firepower to complete all of its
current backlog if the company started work on all of the projects,” said Allen Sandeep, the research
director at Naeem Brokerage.
“However, we believe they could probably raise the money quite easily.”
According to Meed, Arabtec and the Turkish contractor TAV bid against Consolidated Contractors
Company, Ed Zueblin and Six Construct to build the Guggenheim, while the company was bidding
against El Seif Engineering Contracting, Constructora San Jose and Six Construct to build the Zayed
National Museum.
Source: The National
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IN THE MIDDLE EAST FOR 30 YEARS Page 33
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DUBAI LANDLORD UNABLE TO TRACE
TENANT OR RENT CHEQUES FOR NINE
MONTHS
WEDNESDAY 13 MAY 2015
I live in the United Kingdom and own an apartment in Jumeirah Lakes Towers. I let out my studio
apartment to an individual and, at the end of the first year, he requested the renewal contract be in the
name of his employer (a real estate agency) as they pay his rent. I agreed, assuming this was a genuine
request. This individual has since left the UAE. When I try to contact the agency they are not
cooperative. When I try to find out who is staying at my flat, they are unwilling to tell. I was advised by
a lawyer to renew for another year and give a 12-month notice on the basis that I wish to sell the
apartment. I renewed in August last year for another 12 months and served notice to vacate at the
same time. It is now nine months and I have not received rent. They claim they have deposited the rent
cheque at Rera but have not provided me any proof. When I have sent my Power of Attorney (PoA) to
collect the cheque, Rera could not trace it. How can I make them comply with my request to one: pay
the rent and two: vacate on time at the end of the current notice period? SA UK
Your tenant may indeed have deposited the cheques at Rera, but if these are not traced then as far as
you are concerned rent is still outstanding and therefore I recommend getting your PoA to file a case
against the tenant with the rental dispute committee. At the committee you will be asked to send a
notarised notification to the tenant requesting the rent be paid giving (another) 30 days’ notice to do so.
Failure to pay the rent after this extra period will allow you to demand eviction due to non-payment of
rent. Sending a notification to vacate the property for reason of selling has to be done in a certain way
for it to be deemed legal.
Firstly, the 12 months’ notice has to be sent before the expiration of the tenancy agreement and it also
has to be sent via notary public or registered mail Any other method of delivery will not be deemed
legal. As long as the above has been adhered to, then your tenant should comply with what has been
asked of him.
I have been living in an apartment in Dubai Marina since 2011. My tenancy agreement is expiring in
July. The rent is below market value which had to do with the agent not abiding by the 90-day notice
period for the past two years. No 12-month notice of eviction via registered mail or notary public has
been given to me. The agent included the following in the lease “both parties agree that this contract is
for one year only and not renewable or extendable”. I had no choice but to sign, but as far as I am
aware this is unlawful. On top of this, the agent has changed and the new agent wants me to move out.
I am happy to vacate next year but not this year and not under the given circumstances. Please advise.
SK Dubai
Ignorance of the law often spills into threatening behaviour on the part of landlords or tenants or their
representatives. I reiterate that a non-renewable clause in a tenancy agreement is not lawful and non-
enforceable; in fact it is up to the tenant to state whether he/she wants to renew or not. A tenancy
contract automatically renews each year unless the landlord gives 12 months’ notice to vacate for
certain reasons and this notice has to be served upon expiry of the tenancy agreement, as per law 33 of
2008.
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Given the facts of your email, I can confirm that you will be entitled to renew your agreement and no
changes will be allowed to the new contract if those changes have not been communicated to you giving
at least 90 days’ notice. Please communicate this to the agent and if he doesn’t agree, I suggest you
open a case at the rental committee.
Source: The National
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JUMEIRAH GOLF ESTATES TO DEVELOP
MID-MARKET HOMES AROUND RACE TO
DUBAI COURSE
MONDAY 11 MAY 2015
Jumeirah Golf Estates is set to start developing mid-market homes for the first time around the course
that is home to the European Tour Race to Dubai.
The golf course developer reported a 68 per cent jump in 2014 profits to Dh430 million and revealed
plans to develop 625 homes around the course.
It also intends to unveil a new master plan for the second and third phases of the project.
The AlAndalus project will include 550 apartments and 75 town houses along with retail, hospitality and
food and beverage outlets. The homes will start from Dh597,000.
“Taking note of strong demand for mid-market homes, the launch of AlAndalus creates an even more
diverse real estate proposition within Jumeirah Golf Estates,” said the chief executive Yousuf Kazim.
Many golf course developments found themselves in the bunker after the 2008 property crash as
projects ground to a halt and investors defaulted on payments.
The recovery of property prices over the past two years, however, has encouraged a revival in golf
course property development, but this time developers are building more affordable homes in response
to perceived higher investor demand in the mid-market.
Damac, the Dubai developer known for its luxury projects, is now developing hundreds of affordable
homes at its 55 million square feet Akoya Oxygen development.
Emaar, the developer behind Burj Khalifa, is now also building more affordable housing with projects
such as Mira, where three-bedroom town houses were sold starting from less than Dh1 million.
It comes as municipal authorities in the emirate push to introduce mandatory affordable housing quotas
for all new developments.
“It is important to remember that there is a huge pent-up demand for affordable housing in the UAE,”
said Steven Morgan, the chief executive of Cluttons Middle East, in a recent report.
Source: The National
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UNION PROPERTIES FIRST-QUARTER
PROFIT PLUMMETS 84%
MONDAY 11 MAY 2015
The Dubai developer Union Properties yesterday reported an 84 per cent drop in first-quarter net profit
on a sharp decline in other income.
Profit during the first three months of the year touched Dh28.1 million, down from Dh179.7m during the
same period last year. Other income came in at Dh4.3m for the quarter compared with Dh103m a year
earlier. The category last year mainly consisted of saving Dh100m thanks to a liabilities settlement with
contractors of certain projects, it said.
UP’s shares on the Dubai Financial Market reacted negatively to the earnings news, closing 9.7 per cent
lower at Dh1.21, down from Dh2.36 a year ago.
“The decline in bottom line was driven by a drop in other income and revenue from construction
activities,” said Harshjit Oza, an analyst with Naeem Brokerage in Giza, Egypt.
Union Properties said that gains from contracting activities shrank in the first quarter even as its sales
and property management revenue increased.
The developer did not release any new projects in the quarter. Last month, Union Properties said it had
signed a deal with Riyadh-based Naif Al Rajhi Investment to enter the real estate market in Saudi
Arabia.
The gain on the sale of investment properties fell to Dh68m from Dh77.7m year-on-year, but the
developer reported a Dh16.5m gain on valuation of properties. It did not report the gain on valuation of
properties for the first quarter last year.
The company was not available for comment.
During the quarter, it sold an investment property with a carrying value of Dh495.3m, resulting in a net
gain of Dh68m.
After 2010, to shore up its cash balance, the developer sold some of its key assets such as the Ritz-
Carlton Hotel and substantial stakes in Limestone House and Index Tower to Emirates NBD.
Despite a slowdown in the Dubai real estate market, some other developers such as Emaar and Nakheel
reported strong results in the first quarter.
Emaar’s net profit of Dh1.02 billion for the period was 7 per cent higher than the Dh957m reported a
year earlier. Nakheel more than doubled its net profit in the first quarter to Dh1.35bn, up from Dh629m.
Among the factors that contributed to the slowdown in Dubai’s real estate sector since last summer were
“regulatory changes, [such as] higher transaction taxes and tighter mortgage lending restrictions, the
surging [US dollar] making Dubai property relatively more expensive for foreign investors, and weaker
sentiment on the back of the sharp decline in oil prices”, Emirates NBD said in a note last month.
Source: The National
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IN THE MIDDLE EAST FOR 30 YEARS Page 37
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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
Julia Knibbs MSc
Manager – Research and Consultancy - UAE
+971 4 403 7789
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
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(IVS) and are undertaken by appropriately
qualified valuers with extensive local experience.
The Professional Services Asteco conducts
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Asteco has established a large regional property
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Our sales teams have extensive experience in the
negotiation and sale of a variety of assets.
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Asteco has been instrumental in the leasing of
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whether a single unit (IPM) or a regional mixed
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