Week 05 - Asteco

Click here to load reader

  • date post

    16-Oct-2021
  • Category

    Documents

  • view

    0
  • download

    0

Embed Size (px)

Transcript of Week 05 - Asteco


© Asteco Property Management | 2020 | asteco.com
35 YEARS | CELEBRATING THE PAST AND
TRANSFORMING THE FUTURE | Page 1
ASSET MANAGEMENT SALES LEASING
REAL ESTATE NEWS
UAE / GCC / MENA
ETIHAD RAIL CHIEF LAUNCHES CONSTRUCTION OF STAGE 2 OF UAE-WIDE RAILWAY
VALUE OF RIYADH REAL ESTATE TRANSACTIONS UP 63%
SKYWAY: UAE'S DRIVERLESS PODS, CABLE CAR PROJECT TAKES SHAPE
CINEMAS TO BOOST SAUDI CONSTRUCTION SECTOR BY $1.3BN IN 2020
MILLENNIUM TAKES OVER MAKKAH HOTEL AS PART OF SAUDI EXPANSION PLANS
DEAL SIGNED TO FINANCE CONSTRUCTION OF BAHRAIN MEDICAL CITY
EXPANSION OF BAHRAIN'S ONLY OIL REFINERY NEARS 40% COMPLETION, SAYS OIL
MINISTER
SAUDI LUXURY PROJECT AMAALA SIGNS DEAL TO PROTECT MARINE ENVIRONMENT
DUBAI HOTEL OPERATOR INKS DEAL TO MAKE OMAN DEBUT
SAUDI ARABIA PLANNING CONFIDENTIAL NEW 'UTOPIA' PROJECT, SAYS ARCHITECT
AI SET TO IMPROVE OPERATIONS, CUSTOMER EXPERIENCES AT UAE HOTELS
DUBAI
LONG-TERM FORECAST OF UAE REAL ESTATE MARKET IS POSITIVE, SAYS ASTECO
DEVELOPER SAMANA AWARDS CONSTRUCTION DEAL FOR SECOND DUBAI PROJECT
REVEALED: THE IMPORTANCE OF EMAAR TO DUBAI'S PROPERTY MARKET
AZIZI PLANS TO TAP GLOBAL DEBT MARKET
ENBD REIT CALLS SHAREHOLDER MEET ON FEB. 12
PANTHEON SAYS $49M RESIDENTIAL PROJECT IN DUBAI SET FOR END-2021 DELIVERY
DUBAI LIMITING SUPPLY FROM GOVT-BACKED DEVELOPERS
EMAAR CHAIRMAN MOHAMED ALABBAR REVEALS 2020 HOTEL EXPANSION PLANS
UAE LEADERS INAUGURATE AL WASL PLAZA, THE HEART OF EXPO 2020 DUBAI SITE
INVESTORS BEARISH ON UNION PROP.’S LATEST PLANS

© Asteco Property Management | 2020 | asteco.com
35 YEARS | CELEBRATING THE PAST AND
TRANSFORMING THE FUTURE | Page 2
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION
HOMEFRONT: 'CAN I GET A COPY OF MY TITLE DEED IF I HAVEN'T PAID MY SERVICE
CHARGE?'
MONGOLIA CONFIRMS PARTICIPATION IN EXPO 2020 DUBAI
EMAAR HOSPITALITY COO LABELS ROVE LA MER 'GAME CHANGER'
THE UNIQUE CHARM OF DUBAI’S OLDER NEIGHBOURHOODS
LULU HYPERMARKET OPENS NEW VENUE AT DUBAI FESTIVAL CITY
MISTAKES TO AVOID WHEN TENANTS BUY A HOME FOR RENTAL INCOME
DUBAI CONTINUES TO GROW AS A LOGISTICS HUB AHEAD OF EXPO 2020
DRAKE & SCULL TO SELECT NEW BOARD MEMBERS
RESALE AND DEVELOPERS' PRICES DIFFERENCE IS AROUND 20% IN DUBAI
DUBAI SOUTH, JEBEL ALI INK DEAL ON GOODS
TERRA, EXPO 2020 DUBAI’S SUSTAINABILITY PAVILION IS STRUCTURE READY
DUBAI RETAIL GIANT SIGNS DEAL TO REVOLUTIONISE CARREFOUR ONLINE ORDERS
WAREHOUSING SPACE SEES STRONG INCREASE IN MARKET ACTIVITY
LUXEMBOURG INVESTS DH129M IN EXPO 2020 PAVILION, WORK PROGRESSING WELL
ON PAVILION
JUMEIRAH SIGNS DEAL TO PROVIDE CATERING AT LUXEMBOURG'S EXPO 2020 DUBAI
PAVILION
NORTHERN EMIRATES
BUYERS, REPORT SAYS

© Asteco Property Management | 2020 | asteco.com
35 YEARS | CELEBRATING THE PAST AND
TRANSFORMING THE FUTURE | Page 3
ASSET MANAGEMENT SALES LEASING
HOMEFRONT: 'CAN I GET A COPY OF MY
TITLE DEED IF I HAVEN'T PAID MY SERVICE
CHARGE?' Wednesday, January 29, 2020
I purchased my property in Abu Dhabi in 2014 and paid my service charge regularly until 2017. Then the
developer decided to double the charge for no reason, before backing down because several owners complained
to Abu Dhabi Municipality (ADM).
Can my developer legally stop me from obtaining my title deed pending the payment of the outstanding charges?
This is in light of the fact the developer does not have its service charge approved by ADM. It also does not comply
with the details of the Abu Dhabi Real Estate Law that requires developers not to make a profit from service
charges, and to provide clear details of how the money is spent. The law also prohibits the demand of a single
lump-sum payment for the annual service charge. From my research, there is nothing in the law that allows the
developer to stop the issuance of my title deed without payment of the service charge. I want your thoughts on
this before I decide whether to take this matter to a civil court. MS, Abu Dhabi
To collect your title deed you do have to first obtain a no objection certificate from the developer. Therefore, you
will have to pay off any outstanding service charges before being able to collect this document.
Please remember that the Abu Dhabi Municipality will charge 2 per cent of the purchase price in order to register
your title deed. This fee has been in effect since December 1 2018. If you have paid the service charges and have
documentation confirming this payment, then the developer cannot stop you from obtaining the title deed.
Can you confirm that Law 33 of 2008 has replaced Law 26 of 2007, which means Dubai tenants no longer need to
give notice that they are moving out at the end of their one-year contract? CW, Dubai
Law 33 of 2008 has not replaced Law 26 of 2007, it has merely amended some of its parts. In the amended law, it
did away with the need to give 90 days' notice to the landlord for non-renewal. I stress, however, that you or
anyone else should adhere to the tenancy contract and/or addendum signed by you and the landlord, This
agreement will give you instructions as to what to do in the event of non-renewal. If there is no clause outlining
the non-renewal, you can refer to the amended law.
Please note that most landlords believe the 90-day notice for non-renewal is still in place, so there will be
resistance if this has not been adhered to. Landlords need as much notice as possible to find a new tenant, in the
event the current incumbent is not renewing.
Remember too that landlords hold your deposit and potentially could use this against you if they feel you have
"broken the contract". Getting the deposit back can generally be a major headache for tenants, that said, please
ensure clear and timely communication with your landlord regarding all things within the tenancy contract.
Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for 35 years
in London and Dubai
© Asteco Property Management | 2020 | asteco.com
35 YEARS | CELEBRATING THE PAST AND
TRANSFORMING THE FUTURE | Page 4
ASSET MANAGEMENT SALES LEASING
LOGISTICS HUB AHEAD OF EXPO 2020 Thursday, January 30, 2020
Dubai continues to be the Middle East’s logistics hub, with the industry clocking steady growth ahead of Expo
2020, according to the latest report from Deloitte.
The report titled, Middle East Real Estate Predictions, examines the performance of the real estate market in 2019
and forecasts changes in the hospitality, residential, office, retail and industrial and logistics markets within the
emirate in 2020.
“Dubai continues to grow as a logistics hub and tourist destination,” said Oliver Morgan, director and head of
development in Deloitte’s Real Estate team in the Middle East.
“Significant infrastructure investment has been made ahead of Expo 2020 and whilst there are still oversupply
issues in key residential and commercial sectors, fundamental drivers are in place for recovery in the long term.”
The primary source of demand for industrial units continues to be from manufacturing and technology
companies. However, logistics and 3PL (third party logistics) firms are expected to be among the primary drivers
of demand in the future, according to the report.
One of the critical success factors in the coming years will be the use of automation to improve supply chain
efficiencies and to gather information on where things are and where they need to be, it said.
Within the real estate sector, the report said the residential market experienced significant pressure owing to an
increase in supply.
Average sales prices for residential property in Dubai declined by approximately 7 per cent between third quarter
of 2018 and third quarter of 2019. Average rents also declined by approximately 9 per cent over the same period,
as the average price per sq ft for apartments fell from Dh1,178 in 2018 to Dh1,090 as at September 2019.
“Dubai’s real estate market is not without its challenges and falling capital and rental values, particularly in the
residential sector, generally translate into lower returns for certain developers and investors,” said Robin
Williamson, head of real estate, Deloitte Middle East.
“The flip side to this is that Dubai is becoming a much more affordable location, for a wider target audience, the
key to success will be translating this into actual demand.”
The emirate is also expected to retain its position as one of the most attractive tourism destinations in the world,
in terms of the total number of international overnight visitors and visitor spend despite downward pressure on
average daily rates (ADRs).
“As key performance metrics are under pressure, it is essential for hotel owners and operators to understand
how to differentiate their offering and manage revenue.”
Revenue per available room (RevPAR) decreased 13 per cent year-on-year between 2018 and 2019 from January
to August. However, occupancy levels increased 3 per cent during this period, indicating greater competition
among operators leading to lower ADRs.
In the office sector, consolidation and workplace optimisation will continue to drive occupier demand, though the

© Asteco Property Management | 2020 | asteco.com
35 YEARS | CELEBRATING THE PAST AND
TRANSFORMING THE FUTURE | Page 5
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION
Dubai’s food & beverage industry is also in the midst of a significant transformation with online disruptors
impacting how often consumers dine out, the report said.
Source: The National
Back to Index
© Asteco Property Management | 2020 | asteco.com
35 YEARS | CELEBRATING THE PAST AND
TRANSFORMING THE FUTURE | Page 6
ASSET MANAGEMENT SALES LEASING
NORTHERN EMIRATES OFFER AFFORDABLE
BUYERS, REPORT SAYS Thursday, January 30, 2020
The Northern Emirates of Sharjah and Ajman remained leaders in affordable housing last year when compared to
other emirates, according to a new survey.
The volume of deals also climbed in both emirates on the back of lower sales prices and rental rates. Government
measures such as the roll out of long-term visas also stoked interest in the two markets, property portal Bayut
said in its latest report.
“Sharjah and Ajman closely follow trends in Dubai and Abu Dhabi [property markets],” said Haider Ali Khan,
Bayut’s chief executive.
“Similar results [as Dubai and Abu Dhabi] were observed throughout 2019 with [sale] prices declining in Sharjah
and Ajman," he said, adding that inventory of new units also climbed in both northern emirates last year.
Nearly 61,357 transactions were recorded in Sharjah last year, a 13.4 per cent year-on-year increase, Bayut said,
without providing transaction data for the Ajman market. The emirate recorded a 10 to 20 per cent drop in rental
and sales prices in most of the popular communities, it added.
In Sharjah, the Al Majaz, Al Nahda and Al Taawun areas remained popular with buyers and investors with the
average price per square foot ranging between Dh352 to Dh381. Rents also remained competitive in these areas,
ranging between Dh17,000 to Dh20,000 for studios, Dh25,000 to Dh28,000 for one-bedroom units and Dh33,000
to Dh 37,000 for two-bedroom apartments.
In Ajman – the smallest emirate in the UAE – Downtown, Al Rashidiya and Emirates City areas dominated sales.
The price per square foot to buy apartments ranged between Dh200 to Dh500, making Ajman a good budget
option for customers.
Bayut said that there was a healthy increase in property handovers in Ajman and Sharjah, last year, leading to
stabilisation in the market.
“There have been several handovers in both cities, including reputed projects such as Al Zahia and Nasma
Residences in Sharjah and the Ajman Corniche Residence,” added Mr Khan.
Average property prices in Dubai have declined on the back of lower oil prices in recent years as developers
focused on smaller, more affordable units and investor concern grew over an oversupply of units.
Average apartment prices in Dubai dropped 16.5 per cent year-on-year during the third quarter of 2019,
according to Cavendish Maxwell's latest UAE Property Market report, while villa prices fell 15 per cent. Apartment
rents also dropped by 15 per cent, while villas and town houses recorded a 12 per cent decline in rental values in
the same period.
In Abu Dhabi, rents continued a downward trajectory for both apartments and villas and town houses in the first
half of last year, according to Cavendish Maxwell.

© Asteco Property Management | 2020 | asteco.com
35 YEARS | CELEBRATING THE PAST AND
TRANSFORMING THE FUTURE | Page 7
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION
Experts have forecast a recovery for the capital, on the back of a new immigration regime offering long-term visas
for investors, the Dh50 billion Ghadan 21 stimulus and changes to the emirate's freehold property law.
Source: The National
Back to Index
© Asteco Property Management | 2020 | asteco.com
35 YEARS | CELEBRATING THE PAST AND
TRANSFORMING THE FUTURE | Page 8
ASSET MANAGEMENT SALES LEASING
DUBAI PROPERTY: GOVERNMENT
INITIATIVES TO BOOST DEMAND IN 2020 Saturday, February 01, 2020
Major steps by the government and an increased number of pro-growth initiatives over the past year are
expected to boost sentiment and drive demand in the UAE’s real estate market in 2020, according to the latest
report from consultancy JLL.
The firm's annual review of the UAE real estate market found that although residential rents and sale prices
continued to decline, it expects a flattening of both over the next 12 months.
Apartment rents and sales prices in Dubai declined 8 per cent and 5 per cent respectively in 2019 compared to
the previous year. Similarly, villa rent and sale prices fell by around 8 per cent and 10 per cent respectively.
In 2019, more than 35,000 residential units were handed over in Dubai, which is the highest ever delivered in a
year, while 83,000 units are scheduled to be delivered in 2020 (although it expects actual handovers to be far
lower). Major projects scheduled for delivery in 2020 include the Azizi Riviera project in Meydan and Al Habtoor
City.
In preparation for Expo 2020, residential supply is expected to reach 638,000 by the end of 2020, representing an
average annual increase of 15 per cent.
“Overall the residential market remains tenant-friendly, with landlords offering flexible payment options in order
to attract new tenants," the report said.
“In addition to the various initiatives launched by the government to boost residential demand from potential
foreign investors and residents, developers are also trying to enhance the residential market by providing various
initiatives such as waiving off the 4 per cent registration fees, offering monthly payment schemes, and post-
handover plans.”
The Dubai government has taken steps to also limit future supply, with the formation of a new Real Estate
Planning Committee in the third quarter of 2019. Developers are also launching fewer new projects and focusing
on the sale of existing inventories.
For Abu Dhabi, apartment rents declined 6 per cent year-on-year in quality masterplanned communities and villa
rents fell 4 per cent in prominent developments. Sale prices for prime villas remained stable, whereas prices for
apartments recorded a 9 per cent drop. A further decline in rents and sale prices is expected this year, the report
said, due in part to an expected supply increase.
Around 1,000 residential units were delivered in the fourth quarter of 2019, bringing the total stock to
approximately 261,330 units. By end of 2020, a further 11,400 units are scheduled to enter the market, mainly
within masterplanned communities such as Al Reem Island, Al Raha Beach, Saadiyat Island, and phase one of
Riyadh City, it said.
In the hospitality sector, demand is expected to recover considerably with various government initiatives set to
take effect this year, and the expected strong visitor growth associated with Dubai's Expo 2020. Other popular
events such as the annual Formula 1 Etihad Airways Abu Dhabi Grand Prix in Abu Dhabi will also continue to
attract international visitors to the UAE.

© Asteco Property Management | 2020 | asteco.com
35 YEARS | CELEBRATING THE PAST AND
TRANSFORMING THE FUTURE | Page 9
ASSET MANAGEMENT SALES LEASING
VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION
Last year saw the introduction of several government initiatives to boost the hospitality sector, such as the
exemption of the visa fee for transit passengers and a focus on increasing the popularity of Dubai in the cruise
industry, among others.
“Large-scale projects, new visa rules and Expo 2020 Dubai will boost tourist arrivals in the coming months,” said
Dana Salbak, head of research Mena at JLL.
“Around 25 million visitors are expected in Dubai from 192 countries during Expo 2020 Dubai alone. These factors
have ensured the hotel market, specifically, will maintain healthy performance levels, continuing the UAE’s status
as a major global tourist and business destination. That said, in the year ahead, market performance will also
heavily depend on how quickly some of the newly-announced initiatives take effect.”
In Dubai, around 7,200 hotel rooms were added in 2019, out of which around 3,200 were added in the last
quarter.
Hotel supply is expected to reach around 151,000 keys by the end of 2020, with notable projects including Artesia
in Damac Hills and Royal Atlantis in Palm Jumeirah.
Meanwhile, the office market remained in favour of tenants for all of 2019 and the trend is expected to continue
in the year ahead as well. In Dubai, Grade A rents in the central business district dropped by 13 per cent to
Dh1,358 per square metre per year in the final quarter and average vacancy rates increased by 3 per cent to 14
per cent. In Abu Dhabi, office rents dropped by about 5 per cent to Dh1,600 per sq m per year and vacancy rates
increased by 4 per cent to 28 per cent.
Source: The National
Back to Index
© Asteco Property Management | 2020 | asteco.com
35 YEARS | CELEBRATING THE PAST AND
TRANSFORMING THE FUTURE | Page 10
ASSET MANAGEMENT SALES LEASING
CEO Wednesday, January 29, 2020
Construction major Drake & Scull International (DSI) said on Wednesday that the Abu Dhabi Public Funds
Prosecutor is investigating new criminal complaints filed against its former chief executive officer and vice
chairman, Khaldoun Tabari, family members, and other former executive managers.
The company said Tabari, who was recently arrested in Jordan, has been charged for misappropriation, fraud,
embezzlement, intentional damage to public funds, profiteering others, and forgery by the Abu Dhabi Public
Funds Prosecutor in response to 15 prior criminal complaints filed by DSI.
The construction giant has been pursuing legal action against Tabari to get him extradited to the UAE following his
arrest by Jordanian authorities at Queen Alia International Airport in Amman. The arrest followed an international
arrest warrant filed by UAE authorities against Tabari that resulted in an Interpol red notice issued January 7,
2020. DSI has also filed a criminal case against Tabari and Zeina Tabari in Jordan.
Tabari's arrest two weeks ago, when he was catching a flight to the UK, was consequent to a request made by the
Interpol to the Jordan Public Security Directorate in wake of his failure to appear before the UAE judiciary in a case
which involves 15 criminal complaints filed against him by DSI in Abu Dhabi. Tabari has a travel ban in the UAE.
A few months ago, Tabari made a statement denying any wrong-doing and said that DSI's accusations of financial
violations against him are an attempt to find a "scapegoat" for its mounting losses. He said that the firm had filed
15 complaints against him to the public prosecutor and the allegations prompted authorities in the UAE to order
banks to freeze his bank accounts in June 2018.
DSI began reporting losses in 2015 after the decline in oil prices forced developers and clients to defer payments
and…