NEWS BRIEF 44 - Astecothird-quarter profit at amlak finance jumps to dh55.1 million dubai’s...

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

REAL ESTATE NEWS UAE

UAE DEVELOPERS OUT TO WOO INDIAN BUYERS

UAE REAL ESTATE’S TRANSITION TO NEW REALITIES

TIMING COUNTS IN SELLING AN INVESTMENT PROPERTY

RAKBANK SIGNS PARTNERSHIP DEAL WITH DUBAI PROPERTIES

UAE CONSUMER CONFIDENCE DOWN IN Q3 2015: REPORT

DUBAI

NAKHEEL PLANS PARTNERSHIP WITH CENTARA FOR DEIRA ISLANDS RESORT

THIRD-QUARTER PROFIT AT AMLAK FINANCE JUMPS TO DH55.1 MILLION

DUBAI’S DEVELOPERS MAKE A CASE WITH SUB-DH1,000 PER SQUARE FOOT

DUBAI SOUTH IS NOT JUST SELLING PLOTS

DH3.3B PROJECTS ARE IN PROGRESS AT DUBAI SILICON OASIS

PROPERTY PORTAL LAUNCHES VERIFIED LISTINGS

WHAT IS THE REAL SUPPLY SITUATION IN DUBAI?

GREEN COMMUNITY WEST: GOING THE MID-LUXURY ROUTE

DUBAI MARINA SEES INFLUX OF RESIDENTS IN NINE MONTHS

DUBAI WILL PICK UP IN 2016: BIN KALBAN

DUBAI PARKS LINES UP AGENCY DEALS AT WORLD TRAVEL MARKET IN LONDON

AL AHLI TO BUILD 20TH CENTURY FOX THEME PARK IN DUBAI

ADJUDICATION A CRITICAL FACTOR IN IMPLEMENTING DUBAI PPP LAW

AL FUTTAIM CARILLION SECURES CONTRACT FOR DUBAI WORLD TRADE CENTRE PHASE TWO

DUBAI TENANT ASKS TO BREAK CONTRACT DUE TO BRAIN SURGERY; LANDLORD SAYS ‘I’LL SEE YOU IN COURT

DUBAI SILICON OASIS REPORTS 16% INCREASE IN REVENUE

ABU DHABI

FOCUS ON REAL ESTATE MARKET TRENDS AT ABU DHABI EVENT

ABU DHABI SETS TARGET FOR 240,000 UK VISITORS IN 2016

DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 asteco.com | astecoreports.com


• ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

ETIHAD DEPLOYS AIRBUS A380 ON FAST-EXPANDING INDIAN TRAVEL MARKET

ALDAR TARGETS EXPATS WITH NEW OFF-PLAN HOMES ON YAS ISLAND

BOLLYWOOD BOOST FOR CRUISES

FOR ABU DHABI RESIDENTS, IT’S ONLY A TEMPORARY RELIEF

ABU DHABI RESIDENTIAL RENTS NEARING AFFORDABILITY CEILING

OTHERS

LIVE IN THE SPLENDOUR OF A HISTORIC VENETIAN PALACE FOR UNDER €5M

NAKHEEL LOOKING TO PARTNER WITH INDIAN RETAIL BRANDS

DUBAI DEVELOPERS DESCEND ON MUMBAI TO ENTICE INDIAN PROPERTY BUYERS

INDIA NEEDS TO IMPROVE CRUISE TOURISM INFRASTRUCTURE




NAKHEEL PLANS PARTNERSHIP WITH CENTARA FOR DEIRA ISLANDS RESORT SUNDAY 1 NOVEMBER, 2015

The Dubai developer Nakheel is planning to partner with one of Thailand’s leading hotel groups, Centara, to create a 550-room resort at its Deira Islands development.

The resort would include a water park and be located close to Deira Mall and Deira Islands Night Souk.

Nakheel has 10 hotels in the pipeline for Dubai, with five of them on Deira Islands.

The planned partnership with Centara is Nakheel’s third joint venture for hotels on Deira Islands announced this year. The company is already working on a 750-room resort with Spain’s RIU Hotels & Resorts and a 500-room Avani resort with Thailand’s Minor Hotel Group.

Centara’s portfolio includes around 14,000 rooms across 67 hotels and resorts under six brands across Asia, Indian Ocean, Africa and the Middle East.

Source: The National

Back to Index




THIRD-QUARTER PROFIT AT AMLAK FINANCE JUMPS TO DH55.1 MILLION TUESDAY 3 NOVEMBER, 2015

Amlak Finance, the Dubai mortgage lender whose shares were frozen for six years after the 2008 financial crisis, reported a huge increase in third-quarter profit yesterday.

Net profit for the three months to the end of September increased to Dh55.5 million from Dh6.1m it made during the same period a year earlier, the Sharia-compliant lender said.

At the same time revenues rose 11.3 per cent per cent to Dh116.3m from Dh104.4m a year earlier.

However, Amlak which resumed trading on the Dubai Financial Market in June after the company completed a financial restructuring, said that the income it received from its core business of Islamic financing and investing assets actually fell 19.3 per cent to Dh72.1m, down from Dh89.4m a year earlier.

The company made up some of the difference through sales of real estate assets at Nad Al Hamar east of the Dubai Creek, which fetched Dh23.5m during the three-month period.

Amlak’s rental income for the quarter also increased 43 per cent to Dh11.6m.

Analysts said that the results suggest that the company is continuing to move away from providing mortgage financing, and towards acting as a property developer.

Profits for the first nine months of the year came in at Dh66.3m, down 14.7 per cent from the Dh77.8m Amlak booked a year earlier.

The company said that this was the result of it issuing a Dh1.3 billion Mudaraba contract to its financiers. However, it added that it had already redeemed Dh200m of the Mudaraba Instrument, within the first year of its restructuring funded by payments received from sales of Nad Al Hamar land.

“We have proactively paid Dh200m to our financiers for redemption of the Mudaraba instrument within the first year of our financial restructuring, which demonstrates our commitment to quickly turning around our business and continue with our growth path to reposition Amlak as a leader in real estate financing in the region,” said Arif Alharmi, managing director and chief executive of Amlak.

Amlak, of which Emaar Properties owns 45 per cent, had faced collapse as the housing bust in 2009 came close to wiping out the value of its portfolio.

A mismatch between the short-term bank financing Amlak relied on, typically renewed on an annual basis, and its long-term mortgage liabilities left it vulnerable to short-term changes in banks’ willingness to lend.




When the collapse of Lehman Brothers in September 2008 precipitated the biggest financial crisis in recent memory, Amlak’s creditors were unwilling to roll over their funding arrangements with the lender.


Back to Index




DUBAI’S DEVELOPERS MAKE A CASE WITH SUB-DH1,000 PER SQUARE FOOT WITH NEW PROJECTS IN EMERGING LOCATIONS, THEY ARE HOPING END-USERS WILL FOLLOW WEDNESDAY 4 NOVEMBER 2015

With their latest launches, more of Dubai’s developers are putting up price tags of under Dh1,000 a square foot to grab an investor’s attention and — more to the point — get him to buy. For the Phase 3 release of units at its Green Community development, Union Properties decided to retain a pricing of Dh850 a square foot despite the fact that it is already a well-established residential location.

Deyaar, in September, released the first apartment units at its quite sizeable underdevelopment Midtown project in IMPZ (International Media Production Zone) at under Dh1,000 a square foot.

And, almost imperceptibly, these projects and the ones to come are simultaneously pulling in investors to join them in heading for the emerging parts of the city. “Furthest out, Dubai South [formerly Dubai World Central] has started to develop less than 3 per cent of its available plots for residential based on available data,” said Sameer Lakhani, Managing Director at Global Capital Partners. “Other locations such as in Dubailand, IMPZ and Motor City are where developers can unlock significant value for themselves and at values which a mid-income end-user can identify with.

“The next upturn in Dubai’s realty cycle should start with demand generated at mid-tier locations rather than premium — and established — destinations. It’s been the case with any major turnaround recorded in the past in New York [during the 1970s], Los Angeles [the 1960s] and even London to an extent.”

Interestingly, even developers with strong upscale credentials such as Omniyat Properties — which has traditionally favoured Business Bay — recently confirmed plans for a venture in IMPZ. Even then, Omniyat will have a pricing point higher than the current average at IMPZ. But the very fact that luxury developers are starting to cater to a mid-tier location bodes well for the health of the marketplace. More so, as they have seen the demand potential that exists by catering to a first-time buyer catering more to a mid-income profile.

But even as fresh locations become available for developers, one thing they cannot do is stick on sales prices that the majority of their target buyers cannot afford. Because it will be among residents with median monthly incomes of Dh20,000-Dh40,000 that they should be casting their net wide.

As of end 2014, an estimated 89.8 per cent of Dubai’s residents are still living in rental locations. The change from what it was in 2010 — 91.1 per cent — has been incremental at best, according to the latest research from GAC. This is where the biggest change could occur over the next decade ‘as freehold supply dominates the housing stock’, the report adds.

But this is where the question of pricing looms large. Based on a rent-to-income ratio of 30-47 per cent, a median salaried worker in Dubai earning Dh15,000 has a budget of Dh54,000-Dh90,000 annually to




spend on rent. “These budget constraints restrict residents from moving to freehold communities due to a lack of options in the affordable segment,” the report notes. “This shortage only widens as residents look for larger size units.”

According to Lakhani, “It won’t take much for residents who are spending 30 per cent and more of their income on rentals to go out and buy,” said Lakhani. “But developers apart from having the right pricing and payment scheme should also ensure optimum space availability.

“There’s no reason why a mid-income family should buy when all that they would get is a one-bedroom or a cramped two-bedroom at best for a price of Dh500-Dh800 a square foot.

“What developers of freehold projects need to do now is create options on living spaces and at affordable rates. Currently, the affordable residential options are only available in leasehold areas.”

Source: Gulf News

Back to Index




UAE DEVELOPERS OUT TO WOO INDIAN BUYERS TWO MAJOR REALTY INDUSTRY EXHIBITIONS OFFER THEM A PLATFORM TO DO SO WEDNESDAY 4 NOVEMBER 2015

UAE developers are out to get the attention of Indian property investors with two major exhibitions scheduled for this week and next month. And with good reason too — Indians were the most prolific foreign investors during the first six months in Dubai realty, accounting for 3,017 transactions valued at more than $2 billion (Dh7.34 billion).

First off will be the Dubai Property Show opening on November 6 in Mumbai at the Bombay Exhibition Centre. More than 30 UAE based developers are participating, and the organiser — Sumansa Exhibitions — is expecting around 5,000 ‘serious buyers’. “Investing in a property in Dubai is probably the best way to get the most from this progressive destination — now and in the long-term,” said Sunil Jaiswal, President of Sumansa Exhibitions. “Dubai is the favoured destination for investors looking to live, work and invest long-term.

“Indians consider Dubai as their second home. Proximity to India, lower interest rates, lucrative rental yield ranging from 4-7 per cent annually, security, tax-free returns on investments of around 20 per cent, 50 per cent leverage, attractive payment plans, regulated market are key driving factors for Indian investments into the Dubai property market.”

Meanwhile, the second exhibition, Irex, opens in New Delhi’s Pragati Maidan on December 4. It will present real estate investment opportunities for high networth individuals keen to invest in high-end properties in India and outside. GMN Road Shows & Events are the organisers.

“The globe-trotting Indian today lives in a boundary-free world, living and working in all the seven continents,” said Gauri Khan, founder of the interior design firm Gauri Khan Homes and wife of Bollywood actor Shahrukh Khan. “Long tenures overseas, both for pleasure and work, makes holiday homes in exotic destination a way of life.”

About 5,000 visitors are expected to visit the show. “The participating companies will be able to create brand awareness, exhibit their latest project offerings and do on the spot bookings,” said Vimal Anand, Director of Irex.

Source: Gulf News

Back to Index




DUBAI SOUTH IS NOT JUST SELLING PLOTS IT IS HELPING FUTURE TENANTS CONNECT WITH THIRD-PARTY INVESTORS ON LOGISTICS ASSETS WEDNESDAY 4 NOVEMBER 2015

The master-developer Dubai South is playing the perfect host. It is not only providing land to build the sprawling logistics and warehousing facilities for future tenant needs but also helping get third-party investors to put in the funds to build these assets.

The build-to-suit facility “is perfect for those operators who do not want to have the properties (and the associated costs) listed on their books,” said Tahnoon Saif, Vice-President of Aviation at Dubai South within the 145 square kilometre Dubai South.

Dubai South was formerly Dubai World Central and home to the world’s largest airport, Al Maktoum International).

“These things, especially investment on hangar facilities for aircraft maintenance, can run into the hundreds of millions of dirhams.

“Our role then is to connect potential tenants with the right partners and the funds to build on their behalf.” (One such facility belongs to the Swedish do-it-yourself furniture and home accessories retailer IKEA, and located in the Logistics District.)

The Aviation District — which was formally launched in 2013 — alone takes up 6.7 square kilometres. As of now, 30 per cent of the District’s land has been developed and the rest should be ready by 2019 ‘with the completion of an aircraft maintenance ecosystem, which forms Phase 2,”, Saif added.

There is no scope for any residential component within Aviation District. Such offerings will come within its own cluster, the Residential District. This is where ‘The Villages’ are going to be, easily one of the most anticipated projects in Dubai’s realty space now. The Villages will create multiple communities and with the stated aim of being an affordable location for its residents. In time, it is to emerge as the bedrock of the mini-city forming around Dubai South.

While eschewing residential, Aviation District will, however, have a hospitality component sighted strategically by the airside facilities. “We have two phases related to hospitality with a total of five hotels planned across the Aviation District,” said Saif. “Phase 1 has been sold out and will launch Phase 2 in Q3 of 2016.

“We are currently allocating the land parcels for hotels very close to (future) Air Shows. The five hotels between them will have 2,000 keys.



http://gulfnews.com/business/property/why-al-maktoum-int-l-is-a-game-changer-1.1604026

http://gulfnews.com/business/property/why-al-maktoum-int-l-is-a-game-changer-1.1604026


“On the airside, we will soon be launching aircraft hangar facilities, terminals for private and VIP jet operations. And also breaking ground on a paint shop for aircraft. The scope is huge — We are creating elements that form a powerful ecosystem for aviation and aerospace.”

Source: Gulf News

Back to Index




UAE REAL ESTATE’S TRANSITION TO NEW REALITIES INVESTORS WILL HAVE TO TAKE CUES FROM THE GOVERNMENT’S SPENDING PRIORITIES WEDNESDAY 4 NOVEMBER 2015

Attending the recent release of the International Monetary Fund’s (IMF) latest ‘Regional Economic Outlook’ for the Mena (Middle East and North Africa) Region at DIFC (Dubai International Financial Centre), I felt a sense of change in the air. The key question facing the UAE real estate market as we head into 2016 is how it will adjust to the ‘new normal’ of lower oil prices and reduced government spending that now looks likely to be here for some time to come.

According to the IMF, the Middle East is facing two major economic challenges: increased fiscal pressures from a combination of lower oil prices and increased defence and security spending, and the ongoing need to create more employment (with the IMF estimating 10 million new jobs required across the region by 2020).

Before we become overly concerned, it is worth pointing out that both the region and the UAE continues to experience economic growth in line with the global average. The pace of global growth has slowed over the past six months, largely due to uncertainties in China and other emerging markets. This has resulted in the IMF revising down its forecast of global GDP growth for 2015 to 3.1 per cent (from its previous estimate of 3.5 per cent in May).

The IMF expects the rate of growth of the UAE economy to moderate from 4.5 per cent in 2014 to 3 per cent this year, with similar levels of growth forecast for 2016. Faced with lower oil revenues and higher expenditure on defence and security, GCC countries are expected to use some of their significant official reserves (estimated to be worth 15.1 per cent of GDP at the end of 2014) to cushion some of the impact. The IMF estimates this will provide a five-year window in which to restructure their fiscal position on a more sustainable long term basis.

For the moment, the UAE is seeking to maintain a balanced budget, with the federal cabinet recently setting a spending target of Dh48.5 billion for 2016, down by just 1 per cent on 2015 levels. This represents a more conservative approach from that adopted in recent years. There are two major components to the fiscal restructuring we can expect to see over the next few years — reduced government spending and increases to government revenue through taxation — and both have implications for the real estate sector.

While details of the planned government spending in 2016 are yet to be released, the continued priority on social welfare (which accounts for over 50 per cent of UAE government spending) and increased spending on regional and domestic security will inevitably mean that spending on other areas will be reduced. While many of the announced infrastructure projects are likely to proceed, they may be scaled back or rescheduled over an extended time frame with future projects being curtailed.




This is likely to result in knock-on affects for the local real estate sector.

The other side of the fiscal balance involves raising additional government revenues across the non-oil sectors of the economy. The Saudi government appears to be moving ahead quickly with proposals for a new ‘white land tax’ on undeveloped sites in urban areas across the kingdom, with details of this being passed to the Shura council within the past month.

While no new taxes have yet been announced in the UAE, some form of sales tax is currently under consideration. This would have clear implications for the retail and hotel sectors of the market.

While JLL remains positive on the long term outlook for the UAE real estate market, there is little doubt that the rebalancing of the fiscal position will result in headwinds and challenges over the next 12 months. Lower oil prices have dampened investor sentiment and resulted in a softening in some sectors of the real estate market over the past six months, marking the beginning of a period of more stable conditions that provide an opportunity for end-users to enter the market, as opposed to speculative investors.

In summary, the region certainly faces short term economic pressures, but the availability of sizeable financial reserves provides the UAE with the opportunity to restructure its fiscal position in a manner that will support sustainable long term economic growth. While 2016 may be a slower year for the local real estate market, the long term outlook remains positive.

Source: Gulf News

Back to Index




TIMING COUNTS IN SELLING AN INVESTMENT PROPERTY AND IT’S BEST NOT TO LET EMOTIONS CLOUD THE DECISION TO SELL A FIRST HOME WEDNESDAY 4 NOVEMBER 2015

Many of our clients didn’t necessarily set out to become property investors. Rather, good sense — and some luck — allowed them to keep existing properties rather than sell, when the time came to move on up in the world.

A common scenario looks something like this: a young savvy professional purchases a small starter home or condo. Love and marriage introduces another similar property into the mix, but neither is perhaps the right size for the lovebirds. This couple chooses not to sell, but rather turn these properties into income-generating investments.

Seeing solid returns and increases in overall property value, as the family grows — and outgrows their family homes — they continue to add these starter homes to their portfolio of investment properties. But what comes next?

At some point it’s prudent to take a look at your inventory and assess whether or not it makes sense to keep all of these real estate assets or sell a few. Looking at trends in neighbourhood property values, where you are with your mortgage, and what the free capital can do for you now are some of the things to consider.

The most astute investors look for opportunities to invest in new projects with the potential for greater payoff. For some this means commercial property.

In our experience there are two types of property investors who “fall” into the business. The first group keeps emotional ties to these places they used to call home. Memories of coming of age and striking out as an urban professional keep them from selling that first downtown condo.

Similarly, saying goodbye to the home where the children took the first steps and spoke their first words is harder still. As they head into retirement themselves, these folks often start talking with grown children about their interest in assuming responsibility for this roster of investment properties that they can’t yet bring themselves to sell.

The second group of ‘accidental’ property investors fundamentally understand that owning income properties is a business; emotion will only cloud rational judgement. For these folks, decisions are based on annual returns, on what’s happening in the market overall, and the bottom-line. For investors with sophisticated business acumen, making the jump into commercial real estate investment can make good sense and is a natural evolution for those seeking higher returns.

But commercial property investment is an entirely new ballgame. It requires a lot more capitol for one, and comes with greater risks. For instance, periods of long vacancy as you seek out the best retail or




corporate tenant requires a significant budget, as do repairs and upgrades to a commercial building to make it appealing to high-value tenants.

But higher stakes also mean stronger returns. Commercial leases come with longer lock-ins and a premium price, especially when the property is located in an optimal location. And with the right anchor business as your tenant, your property can transform a neighbourhood and drastically increase both yours and the community’s real estate values.

While commercial real estate and commercial property investment involve a greater gamble, it can suit a hands-off investor just fine. The prerequisites are an experienced and shrewd investor who enjoys a little risk and has the necessary capital to do things right. But this investor should absolutely team up with a full-service, end-to-end property management company, especially if they hope not to be involved in the everyday minutiae.

If this is you, the team you’re seeking, is the one that can provide everything from sound investment advice, transaction execution, assistance with external professionals (like mortgage brokers and lawyers), to preparing the property itself, finding and on-boarding the right tenants, and of course management and maintenance of the day-to-day.

With this in place, the hands-off investor can reap all the benefits of owning physical property without more work than investing in a REIT (real estate investment trust).

Owning and managing real estate done right yields high payouts without a lot of headaches. Done wrong it can be a costly and frustrating undertaking, and no more true than in the case of commercial properties.

Source: Gulf News

Back to Index




RAKBANK SIGNS PARTNERSHIP DEAL WITH DUBAI PROPERTIES BANK TO PROVIDE HOME FINANCE SOLUTIONS FOR DUBAI PROPERTIES PROJECTS WEDNESDAY 4 NOVEMBER 2015

The National Bank of Ras Al Khaimah (RAKBank) said on Wednesday it has signed a partnership agreement with Dubai Properties to provide home finance solutions for some complete and off-plan properties in Dubai Properties’ portfolio of projects.

Under the partnership, the bank will offer financing for properties such as Mudon, and completed projects including JBR (Jumeirah Beach Residence), Executive Towers, Bay Square, The Villa, and Remraam.

“Judging by the significant response to the launches of our new communities, we expect the high demand for high-quality and affordable homes in well located residential communities to continue. This partnership with RAKBank will enable us to offer our customers a flexible range of home financing solutions that suit their individual needs and help them invest in their own future,” stated Abdulla Abushabieb, senior executive director of Customer Care and Government Relations at Dubai Properties.

RAKBank’s home finance solutions extend up to 25 years, with finance to value ratios of up to 80 per cent for Emiratis and 75 per cent for expatriates for completed projects, and 50 per cent for off-plan projects.

Ian Hodges, head of Retail Banking at RakBank, added that the partnership with Dubai Properties will allow the bank to support customers who wish to invest in properties in prime locations.

They are also available to salaried and self-employed business customers, as well commission-based employees.

RAKBank offers conventional as well as Sharia-compliant home finance solutions to Emiratis, expatriates, non-residents, and GCC nationals. The bank also has a team of specialist home finance advisers to provide knowledge, tools, and services to customers.

Source: Gulf News

Back to Index




UAE CONSUMER CONFIDENCE DOWN IN Q3 2015: REPORT TUESDAY 3 NOVEMBER 2015

The UAE consumer confidence declined in the third quarter, marking the second consecutive quarterly drop, according to a report released by Nielsen on Tuesday.

Consumer confidence was down one point to reach a score of 107 from the second quarter, as per the Nielsen Consumer Confidence Index.

"UAE’s economy is showing signs of softening," said Arslan Ashraf, managing director, Nielsen Arabian Peninsula, in a statement.

“Lower oil prices and weaker macroeconomic fundamentals regionally as well as globally have impacted the sentiments of UAE’s consumer confidence,” he added.

The index measures perceptions of local job prospects, personal finances and immediate spending intentions among more than 30,000 respondents with Internet access in 61 countries.

Source: Gulf News

Back to Index




DH3.3B PROJECTS ARE IN PROGRESS AT DUBAI SILICON OASIS THURSDAY 5 NOVEMBER 2015

Dubai Silicon Oasis Authority (DSOA) is currently implementing projects worth Dh1.423 billion, Shaikh Ahmed bin Saeed Al Maktoum, chairman of DSOA, said on Wednesday.

The hi-tech free zone has also attracted foreign investments worth Dh1.865 billion, bringing the total investments at DSO to Dh3.288 billion.

"The investment projects that DSO is currently working on include the Dh1.2 billion smart city project Silicon Park; Technohub, the Dh97 million office building dedicated for technology entrepreneurs; the Dh56 million dorms building for the Rochester Institute of Technology Dubai; the fifth phase of the light industrial units costing Dh42 million; and the Dh28 million roads improvement project," Shaikh Ahmed said in a statement.

The Dh1.865 billion foreign investment includes the Dh1 billion Fakeeh Academic Medical Centre; the Dh500 million shopping centre; the Dh200 million Axiom building; the Dh110 million manufacturing facility for Chang Zhou Almaden, one of the world's largest producers of photovoltaic anti-reflective coated glass; and the Dh55 million regional headquarters of SIG Combibloc Obeikan, a system supplier of aseptic carton packaging and filling lines.

Shaikh Ahmed said that in the first half of 2015, DSOA recorded Dh245.4 million in revenue, representing a 16 per cent increase compared with the same period last year. DSOA also earned Dh93.8 million in net profit while achieving a 14.6 per cent growth in recurring revenues compared to the first half of 2014.

"DSO's outstanding record in attracting foreign investment is testament to the exceptional services and state-of-the-art facilities it offers to hi-tech companies, investors and entrepreneurs. The increase in the number of companies operating out of DSO - from 1,064 in 2014 to 1,187 in the first half of 2015, marking an increase of 12 per cent - is further evidence of the park's success," DSOA said in a statement.

Nearly 71 per cent of the companies operating at DSO specialise in IT, while the remaining 29 per cent operate across a range of sectors, including commerce and services.

The current breakdown of organisations by country represented at DSO is as follows: 37 per cent of the companies are from the Middle East and North Africa (Mena); 30 per cent are European; 21 per cent are Asian; 11 per cent are from the Americas; and just less than one per cent is from Australia and New Zealand.

"DSO has developed its 2021 growth plan that lays out a blueprint for expansion that will help shape DSO's future trajectory. The strategy is in line with the emirate's vision of becoming a smart city that




encourages innovation and creativity, and supports young technological talent to convert their ideas into successful tech businesses," said Shaikh Ahmed.

Dr Mohammed Alzarooni, vice-chairman and CEO of DSOA, highlighted various achievements during the first half as well as several agreements signed with local and international companies.

The Silicon Park, the first integrated smart city project to be built in DSO, is scheduled for completion by 2018.

Source: Khaleej Times

Back to Index




DUBAI SILICON OASIS REPORTS 16% INCREASE IN REVENUE WEDNESDAY 4 NOVEMBER 2015

Dubai Silicon Oasis Authority (DSOA) yesterday announced a 16 per cent increase in revenue for the first half of 2015 to Dh245.4 million.

It also said net profit for the period stood at Dh93.8m, although a comparative figure for 2014 was not provided.

The authority, which is owned by the Government of Dubai and oversees the Silicon Oasis free zone, also managed to increase the number of companies operating from the zone by 12 per cent during the period - to 1,187.

Of these, 71 per cent specialise in IT, while the remaining 29 per cent work across sectors including commerce and services.

About 37 per cent of firms within the zone are from the Mena region, 30 per cent are headquartered in Europe, 21 per cent in Asia, 11 per cent from America and 1 per cent from Australia and New Zealand.

The authority’s chairman Sheikh Ahmed bin Saeed said that it is currently carrying out investment projects of its own worth more than Dh1.4 billion, and has attracted foreign investment in new projects worth almost Dh1.9bn into the area.

Its own projects include the Dh1.2bn Silicon Park scheme, a 150,000 square metre development billed as the first integrated smart city project in the region. It also includes the Dh97m Technohub projects for start-ups and a fifth phase of light industrial units valued at Dh42m.

Investors’ projects include the Dh1bn Fakeeh Academic Medical Centre, for which a construction contract was awarded last week to Habtoor Leighton Group, and a Dh500m shopping centre due to be delivered in 2018.

In its recent third-quarter report for the UAE, the property consultancy Asteco identified Dubai Silicon Oasis as the area with the fastest-growing apartment rents.

Rents in the community increased by 9 per cent year-on-year, although sale prices over the same period fell by 11 per cent.


Back to Index




PROPERTY PORTAL LAUNCHES VERIFIED LISTINGS TUESDAY 3 NOVEMBER 2015

Propertyfinder.ae has introduced verified listings in the UAE. With this, propertyfinder.ae becomes the only online real estate platform in the UAE to achieve this milestone.

Verified status will help buyers identify genuine and vetted property listings. It is expected to improve user experience, change the way property agents do business and raise the bar for real estate players in the UAE.

Michael Lahyani, chief executive officer at propertyfinder.ae, said: "Striving for innovation and excellence defines propertyfinder.ae. The release of 'verified listings' stands testimony to our core promise of serving the consumer and most importantly raise the standard of the industry, so that property investment becomes a smooth process."

Propertyfinder.ae follows a meticulous data collection and quality control process to ensure verification of listings. Verified listings on the portal will feature authentic documents approved by a dedicated team. Those listings will get displayed on top of the search result page with a stamp as verified. This service will impact how properties are currently advertised.


Back to Index




FOCUS ON REAL ESTATE MARKET TRENDS AT ABU DHABI EVENT SATURDAY 30 OCTOBER 2015

The seventh edition of the International Real Estate and Investment Show, or IREIS 2015, currently underway at the Abu Dhabi National Exhibition Centre, hosted an international conference to highlight key global and regional real estate market trends by convening panelists and experts from leading real estate firms across the region.

The day-long conference was headlined by key speakers from Bloom Holding, Abu Dhabi Finance, CBRE Middle East , JLL Mena, Prof Estate, Core - Savills, and Morningside.

The conference opened with session titled 'Market Trends in Global Investment', led by Simon Townsend, director of Strategy, CBRE Middle East. This was followed by a panel discussion on 'Key Trends in the UAE Property Market' moderated by Dr Hani Shammah, managing director, Morningside and headlined by eminent speakers including Sameh Muhtadi, CEO, Bloom Holding, John Kim, Partner at ae-7, David Dudley, International Director, Jll MENA and Anthony Mallows, director, Masdar City

The conference concluded with a panel discussion on 'Fiscal and Business Considerations in Today's Global Property World' moderated by David Godchaux , CEO CORE - SAVILLS and headlined by Murray Strang, director, head of Investment and Agency, Cluttons, Chris Taylor, CEO, Abu Dhabi Finance, Andrzej Olejnik, CEO, Prof Estate and Carine Souaiby, managing partner, Knowledge Vision Consultancy

Dr Nick Coles, director, DOME Exhibitions, said: "This international conference provides an opportunity to gain vital insights into key trends in the UAE property market and beyond in low oil price economy, greatly enhancing the stature of IREIS 2015."

Simon Townsend, director and head of Valuation and Consultancy, CBRE Middle East, said: "We are delighted to participate in IREIS 2015. The world-renowned exhibition has helped us meet a group of global investors with the common goal of gaining further insights and discussing local, regional and international real estate markets."


Back to Index




WHAT IS THE REAL SUPPLY SITUATION IN DUBAI? A QUICK LOOK BACK AT THE HISTORY OF THESE REPORTS AND IT QUICKLY BECOMES CLEAR JUST HOW FAR APART THE PREDICTIONS ARE TO THE ACTUAL REALITY OF THE NUMBER OF DELIVERED PROJECTS WEDNESDAY 28 OCTOBER 2015

As with all real estate markets around the world, with all investment opportunities, sentiment is a key driver. That is particularly true of the Dubai real estate market. Views on whether prices are heading up or down are often driven by so-called "market research" and the media reflection of such. These are often presented as a fact without any effort to scrutinise the basis and reliability of the numbers.

Every few months, we see the latest reports on pricing trends, drawn up by consultancies who have a vested interest in the presentation of the numbers. These figures are, more often than not, taken from one source, or in some even more concerning cases, from listings on websites.

These figures drive the media's thirst for statistics and numbers, and through them, potential investors' response to the current status of the market.

A quick look back at the history of these reports and it quickly becomes clear just how far apart the predictions are to the actual reality of the number of delivered projects.

For example, we at Damac Properties announced to the market at the start of the year that we would handover between 2,000 to 2,500 units over the course of 2015. Of that number, around 1,500 would be in Dubai. We remain on target to achieve this figure.

Emaar Properties, another large developer in Dubai, has told the market it will hand over around 800 units in Dubai this year. That's almost 2,500 units from the two developers that make up over 50 per cent of all the current inventory handovers in Dubai. So, it begs the question: where are the 25,000 total handovers in Dubai in 2015 that was predicted within market research reports?

As each quarter goes by, the figures are refined and reports now state that just 4,000 units have come online so far this year - with 6,000 more to come in the last 12 weeks of the year. Even if 6,000 units are handed over in the last three months of this year, which I very much question, that will be a total of 10,000 units for 2015 - much less than the 25,000 which was predicted in reports for the fourth quarter of 2014.

Such predictions help companies gain exposure and perceived authority, but they also have a detrimental effect on the generally positive sentiment in the market. They also have the danger of turning people away from what remains a strong and well regulated marketplace.

Data released by the Dubai Statistics Centre shows that the non-labour population jumped by over seven per cent in 2012 and 2013, while the number of households grew by 7.6 per cent in both years.




Based on the current population in Dubai of just over 2.4 million, we can anticipate more than 160,000 new residents will be coming to Dubai this year and more than 170,000 next year. Each of these new residents will need a place to live.

Adding 10,000 units a year to support such a growth in Dubai's population does not seem such a huge addition - indeed, the same reports suggest Dubai had 448,000 completed units at the end of 2014, so adding 10,000 more units is just over 2.2 per cent; again, this does not sound a very large percentage, considering we are experiencing a population growth of five to seven per cent annually.

We are also not seeing any significant drop in rental prices at the current time, suggesting that, particularly in key areas such as Dubai Marina, JLT and the Burj area, there remains desirability for locations with completed infrastructure. The suggestion, even though it is a fallacy, that Dubai is set to be flooded with new homes is not affecting landlords' ability to earn strong rental returns.

Rents are now running at the highest ever recorded in many areas - this would usually be a sign that there is a requirement for more housing, not less, to soften the growth in rental yields.

Dubai's real estate market remains strong, with key areas seeing impressive capital growth, and new expansions to the city such as our Akoya by Damac master development starting to come online by the end of the year offering a new way of living, with attractive purchase prices.

To suggest that Dubai is to be flooded with further housing is professional malpractice. The Dubai government, through the Dubai Land Department and the Real Estate Regulatory Authority, are maintaining a sustainable level of development across the city to ensure that Dubai continues to grow into one of the most thriving and exciting cities on Earth. We should all support this vision through our words and actions.


Back to Index




GREEN COMMUNITY WEST: GOING THE MID-LUXURY ROUTE UNION PROPERTIES LAUNCHES SALES FOR AFFORDABLE TOWNHOUSES AND DUPLEXES IN GREEN COMMUNITY WEST. WEDNESDAY 28 OCTOBER 2015

When it comes to creating mixed-use communities, no one gets it quite as right as Union Properties. Already boasting the two flagship Green Communities in Motor City and Dubai Investments Park (DIP), the developer is now tapping into demand for affordable luxury. It officially launched off-plan sales for investors in phase three of Green Community West in DIP on Tuesday.

Strategically located near Al Maktoum International Airport and the Expo 2020 site, this phase includes 210 mid-luxury three-bedroom townhouses, 16 duplex apartments, two clubhouses including health and leisure facilities, and 6,000 square feet of retail.

Units will be priced from Dh850 per sq ft and go upto Dh1,200 per sq ft. Average size per unit is 4,350 sq ft for a three-bedroom apartment.

The developer has flexible payment plans: the investor needs to pay 50 per cent till the handover date. The remaining 50 per cent can be paid on a flexible basis for up to eight years.

"It's an extension of an already existing popular project. We're confident of generating demand from investors and existing clients," said Ahmad Almarri, general manager of Union Properties.

The wider Green Community is already self-sufficient, with fully fledged retail, medical, educational, hotel and commercial facilities. Once complete, the total number of residential units will reach 1,765 over the three phases.

Expected to be delivered in phases until 2017, part one of expansion will include 76 townhouses and be delivered in 18 months. Phase two will comprise 93 units and be delivered in 21 months while phase three will include the duplex apartments and remaining townhouses and be delivered in 24 months.

Union Properties is tapping part of the construction finance from Dubai Islamic Bank. The construction value of the Green Community West expansion is pegged at Dh680 million.

Construction commenced on site in June 2015. Wade Adams has completed the enabling works. Shapoorji Pallonji International has commenced work on site and Dewan Architects & Engineers is the project consultant. Superstructure work is currently in progress.

Retail portfolio

Union Properties has derived all recurring income from its retail projects. The Ribbon, a shopping strip in Motor City, has been delivered to tenants for fit-out and will be operational by December. While Uptown Mirdif is 80 per cent leased out, there will be more phases of expansion.




Meanwhile, The Link is a mixed-use structure conceptualised in Motor City and will include a 4-star hotel and high-end restaurants. It will be launched next year, said Almarri.

On the residential front, construction tenders have opened for Oia Residence, a low-rise project including apartments and townhouses, in Green Community Motor City.

Design is complete for the Vertex Tower, a five-tower structure in Motor City. Tenders for phase one of the project will be floated in the second half of 2016.

Union Properties has a land parcel of 13 million sq ft in Motor City and Meydan. "If we come across good deals, we will definitely purchase land. But the pricing needs to be right to ensure it's profitable for us," said Khalid bin Kalban, chairman of Union Properties.

Overseas foray

In its first foray outside the UAE, Union Properties has signed a memorandum of understanding with Naif Al Rajhi Investment Company in Saudi Arabia. The 50:50 joint venture will set up an operating company to handle future projects, with Riyadh being the focus market. Naif Al Rajhi comes with a vast land bank that will be used to build both mixed-use communities and high rises. "All initial details will be finalised in the first quarter of 2016," informed Almarri.


Back to Index




DUBAI MARINA SEES INFLUX OF RESIDENTS IN NINE MONTHS THE JUMEIRAH VILLAGE COMMUNITY, WHICH INCLUDES JUMEIRAH VILLAGE TRIANGLE AND JUMEIRAH VILLAGE CIRCLE, HAS PROVED TO BE A VERY POPULAR NEW RESIDENTIAL AREA TO MOVE TO. MONDAY 2 NOVEMBER 2015

Dubai Marina and Jumeirah Beach Residence (JBR) rank high on the popularity index among city residents -- the two communities witnessed the highest move-in rates from January until September, reveals data compiled by MoveSouq.com. Sixty per cent of all moving activity within Dubai is limited to 10 areas, as per a report, which examined data from more than 2,500 moving requests on the MoveSouq.com website.

Other communities that saw most people moving in were Jumeirah Village, Downtown Dubai and DIFC, Dubailand and Emirates Hills. Jumeirah Lakes Towers dropped from fourth position in May to seventh, with Palm Jumeirah ranking eighth. The Jumeirah Village community, which includes Jumeirah Village Triangle and Jumeirah Village Circle, has proved to be a very popular new residential area to move to.




Residents favour communities in Dubailand too, despite the slowdown in the move-in rate over the course of the year. With continuous development in the area, the community should expect to experience a high influx of residents looking to move in. Silicon Oasis, Academic City and Discovery Gardens were other preferred residential enclaves owing to affordable rents.


Back to Index




DUBAI WILL PICK UP IN 2016: BIN KALBAN WEDNESDAY 28 OCTOBER 2015

Union Properties reported disappointing numbers for the first two quarters of 2015. However, investors can cheer up. Khalid bin Kalban, chairman of the company, has predicted a net profit in the range of Dh400 million to Dh450 million for the whole year.

"For the third quarter, we project a rough net profit of Dh100 million-plus. For the first nine months of the year, it will be in the range of Dh155 million. These figures will be subject to audits and confirmation from the board," said bin Kalban.

"We turned the corner three years ago. I challenge anyone who says that UP has not done well since the new board took over. How many times has UP made more than Dh600 million [in annual profits] since 1993 when the IPO took place? Even during the financial crisis and the company had to deal with billions of dirhams in debt, we went about our business. Last year, we paid out a cash dividend," the chairman said.

Bin Kalban said the current slowdown in the real estate market was natural. "After three years of high growth, a correction phase had to come. The Dubai market will pick up from mid-2016 onwards and the momentum will last until 2020," he said.

"But the number of projects will not be as high as announced owing to limited contractor capacity in Dubai," said bin Kalban. "The local construction sector will utilise most of its capacity to handle government-related projects for Expo 2020. They will not have resources for the private sector."

The chairman said banks are now loathe to lend to the real estate market. "Developers are substituting banks and taking on a lot of risk on behalf of investors by offering ridiculous payment plans. Liquidity is stuck in the system. This is also reflecting in the financial market," he informed.

"Hopefully, there will be a return of liquidity in 2016. Banks may finally have to change their stance of not lending to real estate," he said.

Bin Kalban said the Dubai market has shifted focus to affordable housing. "The ultra luxury market has softened. But the mid-low to mid-high market is still growing. Although the number of transactions has increased in Dubai, their total value has decreased," he added.


Back to Index




DUBAI PARKS LINES UP AGENCY DEALS AT WORLD TRAVEL MARKET IN LONDON TUESDAY 3 NOVEMBER 2015

LONDON // Dubai Parks and Resorts has started negotiations with travel operators and expects to sign “dozens” of deals designed to help it meet its targeted sales of 6.7 million tickets in 2017.

The Dubai-listed theme park operator is exhibiting at this week’s World Travel Market exhibition in London, which it says is its launch pad in forming relationships with travel and tour companies ahead of the scheduled opening of its entertainment complex in October next year.

“In the next 60 to 90 days we will be signing agreements with some of the people that we meet here,” said Vinit Shah, chief destination management officer at Dubai Parks and Resorts.

The company is behind an ambitious Dh10.5 billion project that includes Legoland, Motiongate and Bollywood theme park attractions, a hotel and water park. Construction is well under way at the site, which is in southern Dubai off Sheikh Zayed Road and close to the emirate’s new airport.

Mr Shah said the company’s appearance at the London show, which began on Monday and runs through tomorrow, marked its first formal push to sign contracts with operators, which will allow third parties to actively promote the theme parks in, for example, travel agent shops.

The company has not set a target for the number of deals it wants to strike but Mr Shah said he expected “dozens” of agreements with firms operating in the UK and farther afield.

He said no deal had been signed yet, but that there had been “phenomenal” interest among operators and destination management companies, which he declined to name.

“We are expecting 6.7 million ticketed visits in 2017, the [first] full year of opening. That being the case, we will need all of our channels to perform very strongly,” he said.

Demand will be from the biggest existing source markets for Dubai tourism – the other Arabian Gulf countries, India, Britain, China, Russia and Germany, Mr Shah said. “There is a latent and pent-up demand in the region because something like this doesn’t exist,” he said. “The geopolitical uncertainty is a concern. But Dubai and the UAE have a safe record in the past so many years, and we hope that continues.”

Dubai Parks and Resorts, a part of Meraas Holding, is forecasting revenue of Dh2.4bn in its first full year of operation.

It has not yet revealed ticket prices but Mr Shah said rates would be comparable to other UAE attractions such as the Aquaventure Waterpark and Yas Waterworld. Day passes for the latter attraction




start at Dh240 for an adult. Mr Shah said day tickets would be sold for access to individual theme parks, as well as multi-day tickets covering multiple attractions.

He said the company did not anticipate any setbacks in the continuing construction of the parks, which involve 34 contractors and 12,000 workers on site.


Back to Index




ABU DHABI SETS TARGET FOR 240,000 UK VISITORS IN 2016 TUESDAY 3 NOVEMBER 2015

LONDON // Abu Dhabi wants to attract at least 240,000 guests from the UK next year, a TCA Abu Dhabi official said.

The UAE capital is on a tourism drive at this week’s World Travel Market exhibition in the UK, where it was named “destination of the year”. About £2.5 billion (Dh14.15bn) of global deals are expected to be struck at the event. A promotional push in the UK is expected to contribute a rising numbers of Britons visiting Abu Dhabi, according to Mubarak Al Nuaimi, the director of promotions and overseas offices at the Abu Dhabi Tourism and Culture Authority.

Mr Al Nuaimi said the emirate is targeting 200,000 guests from the UK this year, and “20 per cent more” in 2016.

Next month’s opening of the Abu Dhabi Cruise Terminal, and the arrival of the Louvre Abu Dhabi in 2016 are also expected to contribute to this trend, Mr Al Nuaimi said on the sidelines of the World Travel Market. He said TCA Abu Dhabi facilitated “more than 100 meetings” on the first day of exhibition.

The government body helps, for example, Abu Dhabi hotels looking to sell blocks of rooms to global tour operators.

“Before the end of the show we will definitely have agreements signed,” Mr Al Nuaimi said.

He was one of several tourism officials celebrating Abu Dhabi’s win, for the second year running, of the city “destination of the year” in the UK Travel Agents Choice Awards. The winners of the awards, which are organised bySelling Travel magazine and based on votes by more than 1,000 UK travel agents, were announced online last month but presented at the World Travel Market.

Abu Dhabi’s Etihad Airways also received an award as the Middle East airline of choice.

Mr Al Nuaimi said the city award will help to keep Abu Dhabi “on the map”.

Mr Al Nuaimi added that tourist numbers to the UAE had remained strong despite the unrest and violence elsewhere in the region.

Abu Dhabi in June raised its annual visitor target by more than 11 per cent to 3.9 million, while Dubai has a high-profile and ambitious aim to attract 20 million tourists annually by 2020.

Caroline Bremner, the head of travel and tourism research at Euromonitor International, based in the UK, said unrest in the wider Middle East had not hit tourism to the UAE.

“You have so many global airlines bringing people in, and that all helps,” she said. “If you … provide the right level of service and you present an image of stability, then obviously you are going to be seen as a




safe destination.” Abdulrahman Ghanem Almutaiwee, the UAE’s ambassador to the UK, said the country was right to press ahead with its tourism initiatives despite the regional problems.

“The region has always been going through this kind of turmoil. If we [were to] wait for this turmoil to settle and then start promoting our country, we would not reach this level of development,” he said. Separate stands geared towards boosting tourism in Abu Dhabi, Dubai, Sharjah and Ras Al Khaimah were on show at the World Travel Market. “This is the beauty of promoting our country,” said Mr ¬Almutaiwee.

“We have the right as single emirates to promote ourselves in the way which we find more productive to our emirates and to the country as a whole. This kind of flexibility gives competition – healthy competition. And it gives us the variety of flavours of each emirate.”


Back to Index




AL AHLI TO BUILD 20TH CENTURY FOX THEME PARK IN DUBAI TUESDAY 3 NOVEMBER 2015

Al Ahli Holding Group will launch a 20th Century Fox World theme park and resort in Dubai.

The company has signed an agreement with Twentieth Century Fox Consumer Products which amounts to a global licensing deal to roll out branded theme parks. This allows it to build four Fox parks anywhere outside the US. The first will be a 4 million square feet property in Dubai containing attractions based on Fox products such as The Simpsons, Ice Age, Night at the Museum, Planet of the Apes and Titanic.

It will be built on the site of Al Ahli Holding’s existing Dubai Outlet Mall, adjacent to Dubai Holding’s proposed Universal Studios Dubailand project. Mohammed Khammas, the chief executive of Al Ahli Holding, said the park would appeal “to different age groups from as young as four years old to as old as 60 and above”.

Mr Khammas declined to give details of the park’s financing or a breakdown of the built-up area, stating that these details would be released at a later date.

However, the park will contain the world’s first Fox-branded resort hotel, which he claimed is unique as it is “infused into the theme park”. “It’s not a distant element you utilise to walk to the park. You are actually in the park when you are in your room. You’re part of the show.”

Rethink Leisure & Entertainment based in Burbank, California, has created the park’s overall master plan, as well as designs for individual rides. It will also operate the completed resort.

Tenders have already been issued for some of the equipment required for the park and construction tenders are likely to be issued by mid-2016. The park is scheduled to open in 2018. Greg Lombardo, senior vice president of location-based entertainment for Twentieth Century Fox Consumer Products, said: “20th Century Fox World Dubai will provide an continuing platform for immersive brand engagement with our consumers from around the world, including key international markets of Europe, Russia and China.”

Mr Khammas said that in terms of the global roll-out, it is eyeing up East Asia, the Indian subcontinent and Latin America for future parks as Al Ahli Holding already has business interests there. The company employs 9,000 people in 20 countries.

The first 20th Century Fox World theme park in the world is already under construction in Malaysia, under an earlier deal the studio agreed with the leisure firm Genting. It is due to open next year.

Al Ahli Holding expects to attract between 4 and 5 million visitors to the Dubai project, despite competition from other proposed theme parks such as the Dh10 billion Dubai Parks and Resorts project, the Dh8bn Universal Studios and the Dh1bn-plus IMG World of Adventures.




“I think every single development in Dubai – be it Dubai Parks, IMG or us – builds infrastructure and therefore we will benefit and cross-pollinate among ourselves.

Whoever visits my park will be interested in spending time in Dubai Parks or IMG and vice versa,” Mr Khammas said.

IMG World of Adventures is a 1.5 million square feet indoor theme park being built by Ilyas & Mustafa Galadari (IMG) Group that will contain four themed zones including one based on Marvel Comics characters. It was initially due to complete in December 2013, but a spokesman has said it will open in early 2016.

Dubai Parks and Resorts will contain four theme parks – Motiongate, Bollywood Parks, Legoland and a Legoland Water Park. It is also due to open next year.

Universal Studios Dubai was initially announced in 2007 and the 7 million sq ft project broke ground in July 2008, with an initial completion date set for 2010. However, work was placed on hold in 2009. A spokesman for Dubai Holding declined to comment on its progress.


Back to Index




ETIHAD DEPLOYS AIRBUS A380 ON FAST-EXPANDING INDIAN TRAVEL MARKET WEDNESDAY 4 NOVEMBER 2015

MUMBAI // Etihad Airways is increasing its efforts to tap one of the world’s fastest-growing outbound travel markets as it increases its capacity into India.

Etihad on Tuesday announced it would start flying the Airbus A380, the world’s largest passenger plane, to Mumbai from May.

Rising middle-class incomes are leading to Indians making more trips abroad, and this market is projected to keep expanding over the coming years.

The UN World Tourism Organization has predicted that there will be 50 million Indians travelling overseas annually by 2020. The number of Indians travelling abroad was 18.3 million last year, up 10.3 per cent on the previous year, according to data published by India’s ministry of tourism.

“Indians have spending power,” said Iqbal Mulla, president of the Global Tourism Council, based in Mumbai. “Many Indians are earning well and have disposable income, and modern Indians want to explore abroad. That’s why our outbound tourism is growing more than inbound tourism.”

Etihad’s A380 flights will operate daily between Abu Dhabi-Mumbai-Abu Dhabi, allowing passengers from Mumbai to connect “seamlessly” on the 496-seat aircraft.

“Despite drastic fluctuations in rupee value recently, numbers of outbound tourists departures from India did not take a hit,” according to a report by iGate Research.

“India has emerged as the world’s fastest-growing outbound market and in absolute numbers it is second only to China.

“The foreign tourism boards are gearing up to meet the growing number of Indians who are travelling abroad and splurging.” It said that Thailand was the most popular tourist destination for Indians, followed by Singapore, while the United States was in third place. In terms of spending by Indian tourists, the US ranked first, however.

“When Air India decided to make New Delhi as the main hub for its international operations, a huge void was created for travellers using Mumbai as an outbound station,” said Satish Modh, the director of the Vivekanand Education Society Institute of Management Studies and Research in Mumbai, who has background in aviation.




“Etihad’s announcement of A380 service from Mumbai fills this gap. It is not only the New York passengers who will board this flight, but many who will use this flight to connect to other destinations in Europe and USA.”

Etihad Airways bought a 24 per cent stake in Jet Airways for $379 million in 2013. Jet and Etihad in August announced that the two airlines combined offered more flights to and from India than any other carrier, with a 21 per cent share of the country’s international air travel ¬market.

The airlines have a total 40,000 seats between Indian and Abu Dhabi each week.

The travel company Thomas Cook India said there had been a 20 per cent rise in its holiday business from Maharashtra, the state in which Mumbai is located, this year.

“Maharashtra currently contributes more than 25 per cent of our outbound business and given the high potential, we have identified Maharashtra as a key strategic focus,” said Shibani Phadkar, the head of outbound leisure travel at Thomas Cook India.

Mr Mulla said that Etihad was offering “a good product” with the new A380 service, which would appeal to Indian ¬travellers.

India is Abu Dhabi’s largest source market for tourists internationally. But Mr Mulla added that he believed much more could be done to promote Abu Dhabi as a destination in India.


Back to Index




LIVE IN THE SPLENDOUR OF A HISTORIC VENETIAN PALACE FOR UNDER €5M THURSDAY 5 NOVEMBER 2015

Much has been written about the plight of Venice in recent years. The city, a series of 118 islands founded in the fifth century, is a Unesco World Heritage site – a must-visit for any tourist travelling to Italy.

And herein lies the problem. A city that was once one of the world’s greatest trading powers and cultural forces between the 12th and the 15th centuries can today seem like little more than a historical theme park. In the summer, it heaves with tourists disembarking from cruise ships – up to 35,000 a day, but few stay overnight. As a result, its hotels and restaurants have suffered and many residents have decamped elsewhere.

For those who stay, though, Venice remains a place of magnificent beauty. And right at its heart is Palazzo Molin – a15th- century listed palace created for one of the city’s former leaders, Francesco Molin.

The building, which has recently been converted into 18 apartments by the developer Patron Capital, is just around the corner from St Mark’s Square. Past tenants include Mozart, who was based in the building close to the city’s theatres and opera houses at the age of 15. One Italian scholar believes the composer wrote Don Giovanni based on one of the palace’s former owners, Count Francesco Falletti Castelmar.

Prices for the converted apartments start at €595,000 (Dh2.3 million), but the flagship is a piano nobile (the principle floor of a large house) apartment with three double bedrooms and three reception areas that is on the market for €4.9m. It has two stand-alone bathrooms and two en suites, and 6-metre ceiling heights with double aspect views overlooking the Bacaroli canal at one end and a courtyard created by the Milan design house Culti at the other.

Based within the middle of the Palazzo, it can (for the right price) also be combined with an adjoining apartment to create a mezzanine level that would add a further three bedrooms, plus another bathroom.

The building combines classic Venetian architecture, including a restored Gothic facade exterior, with contemporary finishes in doors, with apartments finished with Marmorino walls and either Venetian terrazzo or parquet floors.

Access to the property, in true Venetian style, is via water taxis leading to one of two private gates leading to the palazzo’s entrance hall or its courtyard.




Q&A

Anne-Marie Doyle, head of Sotheby’s International Realty’s Venice office, tells Michael Fahy about the Venetian property market:

How has Venice’s property market fared over the past 12 to 24 months?

The rental market in Venice continues to hold its own, with much more demand for world-class restoration properties and prestigious palaces for rent. The sales market saw a period of relative inactivity up to 18 months ago, with most sellers preferring to wait for their price rather than sell. Venice has never been a distressed market for this reason. In the last 18 months we have seen a huge upturn in demand and more high-value deals being done — almost to pre-2008 levels.

What about the tourist hordes?

Venice is a unique city which offers a relaxed lifestyle unlike anywhere else in the world. The authentic Venetian way of life has a wonderful sense of community and history, where children still play in the squares and people have time to stop for a chat or try some cicchetti (Venetian tapas) with a spritz. Of course tourism exists as in any great city, but you only have to go 50 metres away from the main areas to find the real Venice.

What are the running repairs or maintenance issues? Isn’t the city sinking?

The ground floor in Palazzo Molin is quite a way above the maximum level of acqua alta tides of recent years (a centuries-old phenomenon), so the development isn’t affected in any way. In terms of maintenance, the restoration of Palazzo Molin has been executed to a very high level, so we do not expect that owners will have to worry about maintenance for years to come.


Back to Index




ADJUDICATION A CRITICAL FACTOR IN IMPLEMENTING DUBAI PPP LAW THURSDAY 5 NOVEMBER 2015

The Government of Dubai has recently introduced a new public private partnership (“PPP”) law (Law No. 22 of 2015) which indicates a desire to use private sector finance to deliver strategic infrastructure projects. But what will this new PPP law mean for construction dispute resolution in Dubai?

We should see a reduction in progress payment-related disputes as the project special purpose vehicle (SPV) will most likely not be receiving payments until such time as the asset is operational. We may see a reduction in disputes related to variations, but those we do see may be larger, and more complex, as change can have a significant financial impact under PPP arrangements especially if it results in critical delay to the operational date.

We may also see an increase in consortia internal disputes where there are culpable delays resulting in financial loss, especially given the fact that the new PPP law allows the Government to take an equity stake in an SPV. PPPs can also result in disputes related to the unitary payments, and to issues such as fitness for purpose or failure to comply with service level agreements.

What we will see is greater responsibility being placed on SPVs to improve the way they deliver projects so as to ensure timely completion as well as operational reliability and availability. By necessity SPVs will need to resolve disputes with their supply chain in a timely manner. It is the latter which creates an opportunity for construction professionals as it opens the door for alternative dispute resolution (ADR).

Those coming from jurisdictions such as England and Wales will be familiar with adjudication. The added benefit of the new PPP law is that it provides a blank sheet of paper for SPVs to re-draft their supply chain contracts as more traditional contracts are unlikely to be fit for purpose. This is where adjudication could be introduced into tiered dispute resolution clauses.

There is no shortage of lawyers with the relevant experience to draft such contracts and there are some off-the-shelf adjudication rules which could be utilised in lieu of having available specific Dubai adjudication law. If PPP is going to be a success it will require the SPVs to proactively drive change. What better place to start than at the outset of the relationship with those in their supply chain by explicitly demonstrating a desire to resolve disputes amicably and quickly?

It is disappointing that the use of ADR, such as adjudication, is not being mandated by the new PPP law. This is, one might argue, a lost opportunity given the major strategic infrastructure projects which are in the pipeline. However, as we have seen previously in Qatar, with the Q-Construct scheme, regional governments continue to prefer local law and domestic arbitration and the new PPP law is no different. It remains to be seen whether the Dubai courts would provide judicial support to adjudication, however, this risk could be reduced by selecting the Dubai International Financial Centre Courts.




In terms of those involved with the adjudication process during the construction stage, there are many lawyers and consultants in the region with adjudication experience. The adjudicator could even be based overseas as a hearing is often unnecessary and the electronic transfer of documents is now commonplace in other dispute forums.

Given the fast-track nature of adjudication, it should be easier to control costs and those involved are better placed to ensure that professional fees remain proportionate. There may also be an opportunity to negotiate fixed price or contingency- based fee arrangements.

Adjudication is a cost-effective form of ADR which, if approached correctly, maintains relationships and ensures that disputes are resolved amicably and quickly, thus allowing the parties to focus on putting the asset into operation, something which will be essential if the new PPP law is going to be a success.


Back to Index




AL FUTTAIM CARILLION SECURES CONTRACT FOR DUBAI WORLD TRADE CENTRE PHASE TWO THURSDAY 5 NOVEMBER 2015

Work on one of Dubai’s biggest office and hotel projects is set to continue after Al Futtaim Carillion was awarded a Dh721 million contract to build a second phase of the Dubai Trade Centre District.

The developer, Dubai World Trade Centre, said yesterday that it had awarded AFC “the main construction contract” to build offices and shops between the current Dubai International Convention and Exhibition Centre and Jumeirah Emirates Towers. Work on the two new blocks of eight and 12 storeys, with a gross floor area of 94,000 square metres, has already started. It is due for completion in the third quarter of 2017, DWTC said.

Plans for the Dubai World Trade Centre District were drawn up by Hopkins Architects and WSP in 2006 comprising two hotels, 2,000 apartments and 250,000 sq metres of office space with shops and car parks. The overall development will have a gross floor area of 535,000 sq metres, DWTC said.

Al Jaber Engineering and Contracting was awarded the Dh3.4 billion contract to build the project in 2008 but was told to down tools the next year.

In 2008, the Dubai World Trade Centre owner launched an international design competition for the second phase of the business district, including plans for a so-called Landmark Tower. However, progress on this was also halted during the financial crisis.

Last year DWTC awarded the UK’s Carillion the £75 million (Dh423.7m) contract to build the 146,000 sq metre first phase comprising an eight-storey office building and a 588-room Ibis hotel which is under construction.

“Coupled with the location’s newly established free zone status under the Dubai World Trade Centre Authority, we are well placed to deliver a business-conducive and professionally managed destination that serves as a strong incentive for global, regional and local multinationals to headquarter their regional bases in Dubai,” said Gurjit Singh, senior vice president for real estate at Dubai World Trade Centre.

Together, the two phases, will consist of 84,000 sq metres of net leasable office space and 6,400 sq metres of retail, DWTC said.


Back to Index




NAKHEEL LOOKING TO PARTNER WITH INDIAN RETAIL BRANDS SATURDAY 7 NOVEMBER 2015

MUMBAI // ving in a strong way in retail and hospitality,” said Ali Rashid Lootah, the chairman of Nakheel, who was in Mumbai for the three-day Dubai Property Show that opened on Friday. “We don’t have many Indian retailers in Dubai but a lot of Indian brands are becoming more and more known regionally and internationally. We are trying to get them to come to Dubai. We have these old relations with India and we are trying to capitalise on that.”

Mr Lootah said he would be keen for an Indian partner to invest in a joint venture in a three- to four-star hotel project. He added that the company had been talking to one potential partner, although nothing had as yet materialised.

The Dubai developer already has three joint venture partnerships for projects. It has partnered with Spain’s RIU Hotels and Resorts for a 750-room, four-star beachfront resort and with Thailand’s Minor Hotel Group for a 500-room Avani resort. A few days ago it emerged that Nakheel would join forces with Thailand’s Centara for a 550-room resort on Deira Islands.

Nakheel has 10 hotels in the pipeline, including a luxury hotel as part of its Palm Tower project.

It is also aggressively developing new shopping centres, including Nakheel Mall, Deira Mall, and Al Khail Avenue.

Nakheel showcased $4.6 billion worth of projects, in terms of construction costs, at the exhibition in Mumbai, including its Deira Islands development and various projects on the Palm Jumeirah. Indians make up about 11 per cent of Nakheel’s customers, having bought almost 4,400 villas, apartments, and land plots worth about $2.5bn in total, according to figures from the company.

Mr Lootah said that Nakheel would consider investing in India if it found the right partner and project.

The company is hoping to unveil a partnership on a project in Riyadh soon, Mr Lootah said, although with the deal yet to be signed he was unable to share details.

“In Saudi Arabia we are talking to a big developer and we would like to be a development manager, passing on our know-how,” he said.

The mixed-use project covered a “huge, huge area” and would “hopefully” be announced in a couple of weeks, he said.


Back to Index




DUBAI DEVELOPERS DESCEND ON MUMBAI TO ENTICE INDIAN PROPERTY BUYERS SATURDAY 7 NOVEMBER 2015

MUMBAI // Property developers descended on Mumbai this weekend for the three-day Dubai Property Show, held in India for the first time, as they gathered to attract buyers amid a slowdown in the emirate’s property market.

Among those trying to lure more Indian buyers were Emaar, Nakheel, Damac, and Kleindienst Group, which was promoting its Floating Seahorses project – designed to consist of floating villas with an underwater level, to be built off The World islands.

Indians are the biggest foreign property buyers in Dubai, accounting for Dh7.8 billion of transactions in the first half of the year, according to the Dubai Land Department.

“This is the first time we have left our comfort zone of the United Arab Emirates and moved outside,” said Al Harith bin Salem Al Moosa, the vice chairman and deputy general manager of the Falconcity of Wonders project in Dubai.

Mr Al Moosa said: “So this is the first step for us to go to the international market and India is the first place we have come to.”

The model of the vast Falconcity project on display at the exhibition certainly attracted the attention of visitors, with a version of the Taj Mahal – four times the size of the original in the Indian city of Agra – planned for the development, alongside replicas of the Eiffel Tower and the Leaning Tower of Pisa.

Bipin Shah, a car dealer in Mumbai, went along to the show with the intention of just looking around and ended up buying a 45 million rupee two-bedroom apartment being built in Business Bay, to be used as a holiday home.

“It was the very flexible payment plan on offer that made me buy today,” he said, explaining that this involved paying 50 per cent in the three years before the handover of the property and the remaining 50 per cent over a three-year period after that.

Noor Mohammed Kapdi, a businessman from Kolhapur, a city about 375 kilometres south of Mumbai, said he had travelled more than eight hours by road to attend the show to find out about buying a home in Dubai, having visited the emirate on holiday a few years ago.

“I’m very seriously thinking of moving to Dubai and setting up a business there, because my wife also wants to go,” he said.




Bharat Bedi, the director of Unique Zone Real Estate, a Dubai-based broker with a stand at the show, said the emirate’s market had seen “a correction from 5 to 15 per cent depending on the area … over the past three to four months”.


Back to Index




ALDAR TARGETS EXPATS WITH NEW OFF-PLAN HOMES ON YAS ISLAND SATURDAY 7 NOVEMBER 2015

A second development of homes on Abu Dhabi’s Yas Island available for expatriates will go on sale next week as Aldar targets off-plan buyers in a difficult market.

The Abu Dhabi-listed property developer plans to start selling a first phase of 271 homes at its new Dh1.5 billion, 800 unit Mayan development, located between Yas Plaza, Yas Beach and Yas Links golf course on November 15.

Aldar said that 47 studio apartments would go on sale for about Dh810,000 each – equating to about Dh16,000 per square metre.

Another 117 one-bedroom apartments would go on sale for Dh1.3 million each.

At the other end of the scale, 10 beach villas will hit the market at Dh5.6 million each.

The company said that ¬construction was due to start next year and the homes would be handed over to buyers in 2018.

“Prices have been falling elsewhere, but prices in Abu Dhabi are still holding up,” said Talal Al Dhiyebi, Aldar’s chief development officer.

“We continue to look at the market – whether it’s oil prices, currency and everything else. But what we see is that tourist numbers at Abu Dhabi’s airport are on the increase,” Mr Al Dhiyebi said.

“We still see some of the corporates recruiting.”

“For two consecutive years the occupancy rates on our residential portfolio of 5,000 units have been ranging between 98 and 99 per cent, which shows us that it is a very healthy market, and our office portfolio is 92 per cent let.”

The Mayan flats are part of 2,000 new off-plan homes that Aldar said it would start marketing in April as the developer banks on a shortage of supply in the city to offset a lacklustre property market.

Earlier this year the company launched 408 apartments at what it termed “affordable prices” at its new Meera ¬project in the Shams area of Reem Island, as well as 1,017 villa plots at West Yas that are available only to Emiratis.

Aldar said that it was close to 80 per cent sold at its 408 Meera apartments on Reem Island.

“And when we say sold, we mean signed sales and purchase agreements where a purchaser has paid a deposit and is committed to pay in installments,” Mr Al Dhiyebi said.




Property services company Cavendish Maxwell last month reported that villa and apartment prices in Abu Dhabi dropped 1 per cent in the third quarter as the new mortgage cap, the strong dirham and the fall in global oil prices continued to weigh on the market.

As a result, prices for villas and apartments are down 4 per cent from a year ago.

Property brokers said that the Mayan apartments were priced at the upper end of the scale for the capital, where lower oil prices and a property slow down in nearby Dubai are prompting caution among investors.

“There is an appetite for beachfront apartments still, but still the pricing seems to be more expensive than most apartments in Abu Dhabi and on a par with built apartments in developments such as Al Muneera on Raha Beach,” said Ben Crompton, the managing partner at Crompton Partners.

“Aldar has recently been very successful in selling off-plan at recent developments, but we are seeing that some of the guys who bought off-plan apartments at developments such as Ansam are now finding it hard to re-sell on the secondary market.

“If you buy off plan, you really have to be pretty sure that prices will be higher three years down the line, and at the moment that is not a given.”


Back to Index




BOLLYWOOD BOOST FOR CRUISES SATURDAY 7 NOVEMBER 2015

One of the major Bollywood releases of this year, Dil Dhadakne Do, starring Anil Kapoor and Priyanka Chopra, tells the story of an Indian family who go on a Mediterranean cruise with their friends to celebrate the parents’ 30th wedding anniversary.

The film proved popular among cinema goers and did reasonably well at the box office. But for cruise operators it was the biggest hit of the year, cementing the popularity of a holiday segment that was already fast gaining traction among Indian travellers.

“Cruise holidays [among Indians] are increasingly becoming popular and we are observing a steady growth in demand of about 15 per cent per annum,” says Karan Anand, the head of relationships at Cox and Kings, a luxury travel company headquartered in India. He explains that as Indians travel more and more, they are increasingly seeking “a different experience”. This “is one of the reasons for the growing demand of cruise vacations which is at present evolving in India”, he says. “The latest Bollywood film releases like Dil Dhadakne Do have also contributed their bit to attract people.”

Expanding middle-class incomes and wealth in the country and Indians’ rising appetite for international travel means that cruise operators are turning to the subcontinent as an important market from which to source tourists. Still considered a relatively new and untapped market, the number of Indians taking cruises has huge potential to expand, according to travel experts. With the UN World Tourism Organisation predicting that there will be 50 million outbound travellers from India by 2020, the country is too big an opportunity to ignore.

“The Indian market for outbound passengers is indeed growing in importance for Royal Caribbean,” says Ratna Chadha, the chief executive of Tirun Travel Marketing, the exclusive India representative for Royal Caribbean Cruises. “In the last few years, there has been a palpable rise in the popularity of cruises in India. The cruise market, growing at a rate of 12 to 15 per cent, annually offers huge potential.”

Popular destinations among Indians taking cruises include Singapore, the Mediterranean, the Bahamas and the Caribbean, she says.

The number of superwealthy individuals in India, defined as those with a net worth of US$30 million or more, is expected to more than double to 3,371 people over the next decade from 1,652, according to a wealth report released this year by property consultant Knight Frank.

All this means that an ever larger number of Indians are also increasingly opting for more adventurous destinations including Alaska, South America, and Scandinavia, says Ms Chadha.

Iqbal Mulla, the president of the Global Tourism Council, based in Mumbai, says that cruises are gaining popularity among Indians partly because they were perceived as good value with packages being inclusive of all meals.




He says that cruise lines are working to attract Indian travellers by introducing options such as Jain (vegetarian) meals and recruiting Indian musicians and dancers to provide appealing entertainment options.

“When you want to attract a certain nationality, you have to have what they like,” Mr Mulla says. “Cruise companies are giving attractive packages to all the tour operators to make sure the Indian tourists experience it and are habituated to going on cruises. Otherwise the perception was that old people are going and it is boring. But it is not like that anymore. The cruise holidays have become a modern holiday.”

While Singapore and Malaysia have been doing particularly well as destinations for Indians booking cruises, he says that the UAE is gaining popularity among travellers.

Abu Dhabi and Dubai, which are both focusing on cruises as an important part of their overall tourism strategy, are actively targeting India.

The Abu Dhabi Tourism and Culture Authority last month carried out a cruise tourism roadshow in Delhi and Mumbai, attracting 500 travel agents.

The TCA Abu Dhabi says that cruise companies MSC Cruises and Royal Caribbean are “developing packages suitable for the Indian outbound cruise market to Abu Dhabi”. A total of 112 cruise ships are expected to stop in the emirate during this season, which runs from September to May 2016, up from 94 during the previous season, according to Abu Dhabi Ports. These ships will bring in 205,000 passengers in total compared to 185,000 last season.

Tourism officials in Abu Dhabi have outlined plans to attract 300 cruise ships carrying about 600,000 passengers by 2030. The capital is developing a modern cruise terminal at Zayed Port, which is scheduled to open by the end of next month.

India is Abu Dhabi’s biggest international source market for tourists overall, but the majority of the travellers who come into the capital on cruise ships are from the UK and other European countries.

Dubai Cruise Tourism in August conducted a roadshow in India, visiting Bangalore, Chennai, Mumbai, and Delhi, to promote Dubai as a cruise holiday destination.

“India ranked number two in the top source markets for visitors to our emirate in 2014, and we look forward to seeing it in a similar position within the cruise tourism segment as well. India is a key market within our cruise tourism strategy,” according to Jamal Humaid Al Falasi, the director of Dubai Cruise Tourism.

In the past, some Indian tourists had been put off booking cruise holidays because of the cost and hassle of organising two separate visas for the UAE as the cruises exit and re-enter the country on their voyages around the region. But the UAE recently introduced a multiple entry visa specifically for cruise tourists to solve this problem.

“Cruise companies are showing growing interest in the burgeoning and high potential India market,” says Shibani Phadkar, the senior vice president at Thomas Cook India.

They are “wooing” Indians with offers such as upgrades, discounts, and other deals, she says.




Cruises offer Indians a “brag factor” and appealed to middle-class travellers as well as high net worth and ultra high net worth Indians, according to Ms ¬Phadkar.

“While the cruise market internationally is traditionally the domain of the seniors, our India data indicates a demand from families, youthful ‘Gen Y’, women-only groups, honeymooners, groups of friends, equally corporate executives and Mice [meetings, incentives, conferences, and exhibitions],” she says.

The growth for Thomas Cook of cruise tourism bookings from India has been “impressive”, Ms Phadkar adds. “Popular movies have been instrumental in fuelling the demand for cruises, the recent Bollywood hit Dil Dhadakne Do being a case in point, and we saw a surge in queries of over 40 per cent in the last month.”

India is also of interest to cruise lines as a destination.

Royal Caribbean says that its cruises bring thousands of international travellers to India every year.

“India has become an important port of call for the global cruising industry,” says Ms Chadha, explaining that the country, however, needs to improve its infrastructure to make the more appealing to cruise companies and tourists alike.

“Royal Caribbean Cruises has more ships passing through India this year such as Rhapsody of the Seas, Quantum of the Seas and Explorer of the Seas as the number of Asia Pacific sailings steadily increases,” she says.


Back to Index




INDIA NEEDS TO IMPROVE CRUISE TOURISM INFRASTRUCTURE’ SATURDAY 7 NOVEMBER 2015

MUMBAI // Cruise operators have criticised India’s poor infrastructure, which they say desperately needs developing to allow growth of a potentially highly lucrative national industry.

“India urgently needs to improve on its cruise port and cruise tourism infrastructure for a more enhanced experience for cruise guests and to better accommodate ships, especially the larger ones,” says Ratna Chadha, the chief executive of Tirun Travel Marketing, the exclusive India representative for Royal Caribbean Cruises.

India’s BJP-led government, which came to power in May last year, has identified tourism as a key segment that it wants to develop to help boost the country’s economic growth.

“There is no particular policy regulating cruise tourism in India,” says Ms Chadha. “The infrastructure of the ports in India does leave a lot to be desired. We have a coastline of 7,000 kilometres that can be developed as a base for luxury cruise ships. Our ports are mostly being used for freight forwarding and not for tourism. There is no uniformity between the ports.”

Iqbal Mulla, the president of the Global Tourism Council in Mumbai, says that berthing fees and deficient infrastructure were having a negative effect on the cruise sector in India.

Royal Caribbean brings in thousands of international tourists, largely Europeans, to India each year via its cruises.

The state of Goa, on the western coast, known for its pleasant beaches, has plans to build a new cruise terminal, with the state authorities having outlined plans to improve infrastructure to boost its tourism industry, one of the biggest contributors to the local economy, and create more jobs.

It attracted 25 cruise ships last year, according to Goa’s tourism board.

“Things are improving gradually [in India] and we are certain that this challenge can be overcome with modernisation, better berthing facilities and improved logistical support,” says Ms Chadha. “These steps are imperative for developing the country’s cruise industry.”


Back to Index




DUBAI TENANT ASKS TO BREAK CONTRACT DUE TO BRAIN SURGERY; LANDLORD SAYS ‘I’LL SEE YOU IN COURT’ WEDNESDAY 4 NOVEMBER 2015

I need to break my contract as I urgently need to move back to the US for brain surgery on two aneurysms. I told the owner my situation, saying I needed to vacate by November 30 and would help find a tenant. He was horrible, saying there is a penalty of two months’ rent to be settled prior to me quitting the contact. He then said if I refused to cooperate “we will meet in court”. He added that he was not open to any alternatives and would only abide by the “actual contract terms”. I can take all my medical documentation to the Rental Dispute Settlement Centre (RDSC) and show them. Have you ever heard of the RDSC helping on a special case like this? LW, Dubai

You would think situations requiring understanding, and perhaps sympathy on the part of the landlord, would be relatively straightforward given the human element involved. In reality, you are at the mercy of the landlord. It would appear that your landlord is not interested in your situation and negotiating out of this contract in a way that would appeal to all parties would seem fairly difficult. I have heard of more shocking cases, where a landlord insisted on claiming his penalty clause after a husband wished to terminate his rental contract early after losing his wife to cancer.

As difficult as it may seem to understand, landlords are merely trying to limit their loss (financial) too but perhaps are not as tactful as they should be when communicating their point. If you have the time, and the inclination, then by all means go and seek the recommendation of the rental committee but I have not heard of similar cases going that far as, generally, parties manage to agree terms. I advise you continue communications with the landlord, but if paying the two months penalty is not negotiable – being his way of releasing you from your obligations – then go ahead and finish it in this way. In the long run it will be the quickest and most cost-effective method.

Our tenants’ renewal date for our Abu Dhabi property is December 22 and we have just advised them of our intention to increase the rent by 5 per cent. Does the two months notice period still stand? If so, will we be allowed to increase by 10 per cent next year, or will the 5 per cent cap still apply? SW, Abu Dhabi

The two months notice period still stands when notifying your tenants you wish to increase the rent at the time of renewal. You have confirmed to your tenants that you wish to impose a 5 per cent increase next year, but please note that as the landlord you are at liberty to charge whatever rent you wish to at the renewal. Since the Abu Dhabi rental cap was abolished you can now effectively charge whatever you want.




I am a landlord for an apartment in JLT and the tenancy contract of my apartment has just expired. Three months ago, I sent an email notifying my tenant of the rent increase as per the Rera calculator and he agreed to it via an email response. Yesterday, the last day of the tenancy contract, he wrote to me stating that due to some issues with his job, he might leave Dubai and therefore this email should be treated as a one-month vacation notice. Do I need to issue a one-month contract and if so, what should the rent be? What if the tenant then wants to stay? AM, Dubai

Organise a contract even if it is for an extension. The actual amount you can ask for is tricky because a four-week rental amount should be more than the long-term equivalent pro-rata rate. You will have to be careful though as any short- term tenancies are now subject to acquiring permission being granted by the DTCM, allowing you to be an operator and therefore allowed to charge the correct short-term rate. It seems that you will only be able to charge an extra month as per the Rera rental rate for the year divided by 12 to get the monthly rate. If your tenant doesn’t vacate due to finding suitable employment, go ahead with a new 12-month contract.


Back to Index




FOR ABU DHABI RESIDENTS, IT’S ONLY A TEMPORARY RELIEF SATURDAY 7 NOVEMBER 2015

For residents renting out Abu Dhabi’s upscale apartments, there has been some partial relief. The rental gain during the third quarter was a muted 1 per cent, according to the latest update by MPM Properties, the real estate arm of Abu Dhabi Islamic Bank.

But it’s only a chimera. On an annualised basis, the rental increases within the top-tier space have been in the 7-10 per cent range, “meaning many tenants will still face sizeable increases at lease renewal”, the report notes. This despite the fact that limited new supply has been hitting the market.

“Just over 1,250 new apartments entered the rental market in the third quarter, including 900 apartments in Gate Towers that have just been released by the Abu Dhabi Government,” the report adds.

Another reason why developers should divert their gaze to possibilities in the middle ground. “MPM continues to see demand from both individual and corporate tenants outstripping supply in affordable areas such as Mussafah, which presents potentially attractive development opportunities for landowners,” the report says.

On the sales side, residential property values have more or less remained stable between July and end September, “reflecting low transaction volumes in the secondary market”.

According to MPM, “‘The only exception has been Al Reef Downtown where values have risen by up to 5 per cent for some unit types, highlighting that investor demand is weighed towards the affordable end of the market driven by attractive rental yields.

“Depressed volumes can, in part, be attributed to the summer holiday period, as well as many owners continuing to enjoy healthy rental yields and showing little inclination to sell in the current market.”

A bit of the negative investor sentiment swirling around Dubai realty also had a rub-off.

“And recent moves by banks to reduce interest rates are a further indicator of weakening demand,” the report adds. “Moreover the increase in off-plan investment opportunities offering attractive payment plan terms is also diverting some liquidity into this segment of the market.”

“In the current market environment, demand for new off-plan product is driven primarily by developers’ reputations and payment plans, followed by price, quality and location,” says Paul Maisfield, CEO of MPM Properties. “Demand has virtually dried up for developments being sold off-plan by lesser-known developers.”

Source: Gulf News l

Back to Index




ABU DHABI RESIDENTIAL RENTS NEARING AFFORDABILITY CEILING SUNDAY 8 NOVEMBER 2015

Residential rents in Abu Dhabi may be reaching an affordability ceiling, particularly at the higher end of the market but given year on year growth, tenants in this segment are still seeing sizeable rental increases at lease renewal.

This is according to the latest Abu Dhabi Real Estate Market Overview report by Abu Dhabi Islamic Bank, or ADIB, and its real estate advisory subsidiary MPM Properties.

Rents at the top end of the market grew a modest one per cent in the third quarter, despite a lack of vacancies and new supply in the high-end/luxury sectors, finds the report. Despite the slowdown, developments in the high-end segment have seen year-on-year rental growth of seven to 10 per cent, meaning many tenants will still face sizeable increases at lease renewal.

Just over 1,250 new apartments entered the rental market in the third quarter, including 900 apartments in Gate Towers that have just been released by the Abu Dhabi government. MPM continues to see demand from both individual and corporate tenants outstripping supply in affordable areas such as Mussafah, which presents potentially attractive development opportunities for landowners.

Property values in the residential market have in overall terms remained stable in the third quarter, reflecting low transaction volumes in the secondary market. The only exception has been Al Reef Downtown where values have risen by up to five per cent for some unit types, highlighting that investor demand is weighed towards the affordable end of the market driven by attractive rental yields.

Depressed volumes can, in part, be attributed to the summer holiday period, as well as many owners continuing to enjoy healthy rental yields and showing little inclination to sell in the current market. Falling prices in Dubai have also had an impact on investor sentiment, and recent moves by banks to reduce interest rates are a further indicator of weakening demand.

"In the current market environment, demand for new off-plan product is driven primarily by developers' reputations and payment plans, followed by price, quality and location," said Paul Maisfield, CEO of MPM Properties. "Demand has virtually dried up for developments being sold off-plan by lesser-known developers.

In the office segment, more subdued activity has been balanced by a lack of new supply entering the market, resulting in marginal rent increases of one to three per cent. The shortage of Grade A space is driving up rents in prime buildings, and having a positive trickle-down effect on some Grade B buildings, though this growth is unlikely to be sustained given the new supply set to come online over the next six months.


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 Manager – Research and Consultancy - UAE +971 4 403 7789 [email protected]

VALUATION & ADVISORY Our professional advisory services are conducted by suitably qualified personnel all of whom have had extensive real estate experience within the Middle East and internationally. Our valuations are carried out in accordance with the Royal Institution of Chartered Surveyors (RICS) and International Valuation Standards (IVS) and are undertaken by appropriately qualified valuers with extensive local experience. The Professional Services Asteco conducts throughout the region include: • Consultancy and Advisory Services • Market Research • Valuation Services

SALES Asteco has established a large regional property sales division with representatives based in UAE, Saudi Arabia, Qatar and Jordan. Our sales teams have extensive experience in the negotiation and sale of a variety of assets. LEASING Asteco has been instrumental in the leasing of many high-profile developments across the GCC.

ASSET MANAGEMENT Asteco provides comprehensive asset management services to all property owners, whether a single unit (IPM) or a regional mixed use portfolio. Our focus is on maximising value for our Clients.

OWNER ASSOCIATION Asteco has the experience, systems, procedures and manuals in place to provide streamlined comprehensive Association Management and Consultancy Services to residential, commercial and mixed use communities throughout the GCC Region. SALES MANAGEMENT Our Sales Management services are comprehensive and encompass everything required for the successful completion and handover of units to individual unit owners.



NEWS BRIEF 44 - Astecothird-quarter profit at amlak finance jumps to dh55.1 million dubai’s...

Documents

Transcript of NEWS BRIEF 44 - Astecothird-quarter profit at amlak finance jumps to dh55.1 million dubai’s...