Week 49 - Asteco

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Transcript of Week 49 - Asteco


© Asteco Property Management | 2019 | asteco.com
34+ YEARS IN THE MIDDLE EAST
Page 1
REAL ESTATE NEWS
UAE / GCC / MENA
UAE IS MOST PROSPEROUS ARAB NATION FOR 13TH YEAR, STUDY SAYS
SAUDI BINLADIN LEADERSHIP OVERHAUL SLOWS $15BN DEBT REVAMP
CONSTRUCTION OF JEDDAH WELLNESS VILLAGE PROJECT TO START IN 2020
TIME FOR UAE’S REAL ESTATE SECTOR TO BE TAXED
SAUDI CONSTRUCTION SECTOR CONTINUES STRONG GROWTH IN THIRD QUARTER
DUBAI
TOP REGIONAL CONSULTANTS BY FORBES MIDDLE EAST
DEVELOPER BLOOM SAYS KEY DUBAI PROJECTS ON TRACK FOR 2020 HANDOVER
PROPERTY DEALS HIT ONE-DAY VOLUME RECORD AS TRANSACTIONS SURPASS 2018
TOTAL
DUBAI'S ECONOMY EXPANDS 2.1% IN FIRST HALF OF YEAR
SALES OF AFFORDABLE HOUSING UNITS IN DUBAI SURGE
DUBAI'S RESIDENTIAL MARKET HAS BECOME MORE AFFORDABLE
DUBAI’S OFF-PLAN PRICES COULD REMAIN INTACT IN 2020
HOME LOANS WORTH DH173 MILLION WAIVED OFF IN DUBAI'S ABU HAIL
SIZE, COMFORT, SAFETY: WHY YOU SHOULD LIVE IN A VILLA IN DUBAI SILICON OASIS
DUBAI PROPERTY TRANSACTIONS REACH RECORD ONE-DAY HIGH
LANDMARK GROUP OPENS DH1BN DUBAI DISTRIBUTION CENTRE
DUBAI’S LUXURY HOMES NOW HAVE THE RIGHT VALUE
DREAM HOME IN DUBAI? CHECK YOUR OPTIONS
DAMAC CHAIRMAN BUYS ITALIAN FASHION BRAND ROBERTO CAVALLI
DUBAI DEVELOPER SET TO REBRAND LUXURY PALM JUMEIRAH PROPERTIES

© Asteco Property Management | 2019 | asteco.com
34+ YEARS IN THE MIDDLE EAST
Page 2
VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION
REAL ESTATE NEWS DUBAI PROPERTY MAY NOT SEE MEANINGFUL RECOVERY IN NEAR TERM: S&P
HOMEFRONT: 'I'VE BOUGHT A DUBAI PROPERTY. WHAT NOTICE PERIOD DO I GIVE THE
TENANT?
ALDAR BULLISH ON 2020 AS GOVERNMENT POLICIES BOOST PROPERTY MARKET
$630M HOMES PLAN UNVEILED TO SUPPORT UAE'S FLEDGLING NUCLEAR SECTOR
ABU DHABI'S ALDAR LAUNCHES NEW RENT TO OWN SCHEME
ABU DHABI PROPERTY CLOSE TO DEMAND-SUPPLY BALANCE
ABU DHABI'S ALDAR TO BUILD $2.18BN SAADIYAT GROVE MEGA PROJECT
ABU DHABI SIGNS UP LULU FOR MIDFIELD TERMINAL
INTERNATIONAL
MIXED-USE PROJECT

© Asteco Property Management | 2019 | asteco.com
34+ YEARS IN THE MIDDLE EAST
Page 3
TOP REGIONAL CONSULTANTS BY FORBES
MIDDLE EAST Monday, Nov 18, 2019
1. ASTECO
Established: 1985
Asteco was formed in Dubai in 1985. The company has a combination of local and international expertise, and
represents a significant number of the region's top property owners, developers and investors. Asteco has
witnessed outstanding growth and diversification over the decades, built a strong regional network of offices, and
currently operates in Dubai, Abu Dhabi, Jordan, Sharjah and Al Ain. Asteco offers asset management, sales,
leasing, valuation and advisory, owners association, sales management and licensing services to its customers.
2. BETTER HOMES
Established: 1986
From a one-woman outfit founded by Linda Mahoney in 1986, Better Homes has expanded with offices all over
the GCC region, and employs nearly 500 people. Having started in residential leasing, they now offer residential
sales, a commercial sales and leasing division, property management and short-term rentals. A founding member
of the Dubai property group, Better Homes had the exclusive rights to lease units in Emirates Towers in 2000. In
2015, Better Homes was to chosen to manage the property portfolio of ENBD, Dubai's largest bank.
3. FÄM PROPERTIES
Established: 2009
fäm Properties is a member of the fäm Group, accruing annual revenues in excess of $490 million. The company
is focused on providing objective, real-time insight to clients and is achieving this by using its own in-house
proprietary Oracle-based technology. In 2018 the agency recorded the highest volume of sales for Meraas. It was
the second year in succession that the company topped sales with the Dubai Land Department and Meraas, while
fäm's brand was lit up on the Burj Khalifa by Emaar Properties to mark its performance last year.
4. ALLSOPP & ALLSOPP
Established: 2008
Allsopp & Allsopp is a family founded property services company operating a traditional U.K. estate agency model
in the U.A.E. It has over 200 brokers working in over four different branches across key communities in Dubai. It
became the first real estate agency in the U.A.E. to become ISO Certified. In October, Allsopp & Allsopp launched a
proptech feature called “Find My Agent,” which will allow clients to see where their estate agent is while they make
their way to the viewing.
5. DRIVEN PROPERTIES
Established: 2012
Founded in 2012, Driven Properties has risen as a major real estate brokerage, investments, and consulting
company. The company provides a whole array of impressive and personalized property options and wealth

© Asteco Property Management | 2019 | asteco.com
34+ YEARS IN THE MIDDLE EAST
Page 4
demonstrated through the firm's clientele network and connections with major Dubai real estate developers,
agents and other market specialists.
Source: Forbes Middle East
© Asteco Property Management | 2019 | asteco.com
34+ YEARS IN THE MIDDLE EAST
Page 5
LANDMARK GROUP OPENS DH1BN DUBAI
DISTRIBUTION CENTRE Wednesday, Nov 27, 2019
Retailer Landmark Group has opened a new, Dh1 billion fully-automated 'Mega Distribution Centre' at Jebel Ali
Free Zone in Dubai.
The company behind the eMax, Centrepoint, Home Centre and Babyshop brands, has said the new distribution
centre is a 43 metre, high-bay warehouse capable of handling 300 million items a year. It has the capacity to
house up to 2.2 million cartons and 250,000 garments on hangars, and will handle them using 1,300 'robotic multi
shuttles' 94 lifts and 28 workstations.
“The opening of Mega DC marks a huge milestone for Landmark Group," said the company's chairwoman and
chief executive, Renuka Jagtiani.
"We are very proud to have built this fully-automated facility, which will serve our customers even better by
ensuring speed and agility of operations but will also project the future of supply chain for our region.”
Landmark Group was set up by founder-chairman Micky Jagtiani in 1973 when from a single store in Bahrain. Its
headquarters moved to Dubai in 1990 and the company now operates more than 2,300 outlets across 22
countries in the Middle East, Africa and India. It employs more than 55,000 staff.
Landmark Group's automated distribution centre's "adoption of technological tools like artificial intelligence, big
data, IoT, robotics and automation to drive logistics solutions is in step with what we do at DP World," said the
chairman of Dubai's ports operator and of the Jebel Ali Free Zone Authority, Sultan Bin Sulayem.
"Customers are looking for speed, transparency, efficiency and effectiveness. A new approach is necessary to
meet their demands along the supply chain. We believe Landmark Group is innovating to enable smarter trade,"
he added.
The centre will have a shuttle system for handling cartons and tote banks with 'inter-aisle transfer technology',
Landmark Group said in a statement.
It also has an automatic storage and retrieval system capable of storing more than 36,000 pallet positions,
serviced by 41-metre tower cranes.
About half of the centre's power requirements will be met through an 8.2 megawatt array of rooftop solar panels,
the largest of its kind in the region.
Source: The National
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© Asteco Property Management | 2019 | asteco.com
34+ YEARS IN THE MIDDLE EAST
Page 6
HOMEFRONT: 'I'VE BOUGHT A DUBAI
PROPERTY. WHAT NOTICE PERIOD DO I
GIVE THE TENANT? Thursday, Nov 28, 2019
The UAE resident wants to move into the home himself as soon as possible
I am purchasing a tenanted property with the expected handover by the end of this month. I plan to move into
the home myself and understand a 12-month eviction notice must be given to the current tenant. The lease was
renewed by the tenant on October 20 and will expire on October 19 next year. My questions are:
Does it matter (or is it better) if the current landlord issues the eviction notice before the property is handed over
to me or should I issue the notice?
Assuming that the eviction notice is issued on December 1 and the tenant receives it on December 5, when does
this 12-month period end? Is it in October 19 next year when the lease expires or either of the December dates
mentioned above? I have found conflicting information that the 12-month period starts from the expiration date
of the current lease, which would be October 19.
Also, can the tenant refuse to accept the delivery of the notice? If this happens, where do I stand? There is a
strong likelihood the tenant may try every trick to delay leaving the property.
After I purchase the property, how do I update the information on the Ejari? And is it a good idea (or mandatory)
to update the Ejari with the new landlord's information? Also, do I need to sign a new tenancy contract with my
information listed as landlord and keep the same lease expiry date of October 19?
Finally, is it better to send the notice through notary public or can I simply prepare it myself and courier the letter
to the tenant? Any suggestions to ensure a smooth transition towards me getting physical possession of the
property will be helpful. MT, Dubai
When a landlord wants to sell a rented property, he/she must inform the tenant by sending a 12-month written
notification either via notary public or registered mail. Given that the current landlord has not issued a formal
notice, I recommend you go ahead and serve the notice yourself (for reason of own use). Once you become the
owner, remember you must also show that you do not own another suitable property that could be used instead.
The 12-month period starts at the point of issuance. There is some confusion as to exactly when a notice ought to
be served; according to Law no 33 of 2008, it should be served upon the expiration of the current tenancy.
However, some judges at the Rental Dispute Settlement Committee (RDSC) allow the notice to be served at any
time. Serving the notice at any time is, however, not allowed for the first year of a tenancy. In this instance, the 12-
month notice can only be served upon the expiration of the first year. In your case, I recommend you issue your
12-month notice when you become the landlord after buying the unit. Your tenant will then have to move out a
year later.
When a notice is sent via registered mail, the courts often use a courier to deliver the document. If the tenant
does not answer the door at the point of delivery or is not in the property at all, the courier company will paste

© Asteco Property Management | 2019 | asteco.com
34+ YEARS IN THE MIDDLE EAST
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VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION
deemed delivered in the eyes of the courts. Despite the fact the contract terms and conditions must remain the
same, it is always good practice to have the paperwork up-to-date.
With reference to the Ejari, again it is better to cancel the old one and re issue with your correct details, however,
this can wait until renewal if need be.
As stated when sending the 12-month notification, this needs to be sent either via notary public or registered
mail. You can choose to prepare the notice yourself but remember to send it via registered mail.
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
The opinions expressed do not constitute legal advice and are provided for information only. Please send any
questions to mario.volpi@engelvoelkers.com
Source: The National
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© Asteco Property Management | 2019 | asteco.com
34+ YEARS IN THE MIDDLE EAST
Page 8
SAUDI CONSTRUCTION SECTOR
CONTINUES STRONG GROWTH IN THIRD
QUARTER Saturday, Dec 07, 2019
The revival in Saudi Arabia’s construction sector continued in the third quarter of 2019, with the level of contract
awards in the third quarter of 2019 increasing by 164 per cent year-on-year, according to a new report.
The value of contracts awarded in the three months to September 30 in the kingdom rose to 47.8 billion Saudi
riyals (Dh46.6bn), bringing the total awards for the first nine months to 87.2 billion riyals, up 117 per cent year-on-
year, the report from the US-Saudi Arabian Business Council shows.
“The 47.8bn riyals in awarded contracts during the third quarter continued the trend seen thus far in 2019 as the
oil & gas sector led … followed by the real estate sector. This quarter witnessed the industrial sector amass the
third -highest value of awarded contracts after a relatively slow pace during the two previous quarters. These
three sectors accounted for 80 per cent of all contract awards during the quarter,” the report said.
This is the second strong quarter of contract award data following a difficult period after the 2014 oil price
collapse which led to the government halting payments to contractors, and the pausing or cancelling of scores of
major projects as spending priorities were reassessed before the kingdom created its Vision 2030 plan. Contract
awards hit a record 290 billion riyals in 2013 — the year in which more than 86bn riyals worth of contracts related
to the Riyadh Metro were awarded — but slumped 108m riyals in 2016, bottoming out at 100.9m riyals last year.
“One of the key regulatory changes that affected projects in the kingdom was the creation of the Bureau of Capital
and Operational Spending Rationalisation. The Bureau halted, suspended, and cancelled numerous infrastructure
projects that were deemed not to be in line with its economic objectives,” the report’s author, economist Albara’a
Alwazir, told The National.
“Fast forward to 2019, we are witnessing a return to heavy spending on mega-projects in Saudi Arabia as Vision
2030 developments like Vision Realisation Plans (VRPs) begin to take shape."
He added that the kingdom has also upped spending on infrastructure-related projects as part of its overall
spending plans.
“Capex as a percentage of the total budget has risen from 19.9 per cent in 2018 to 22.2 per cent in 2019.
Furthermore the (kingdom’s fiscal balance programme) plans for capex to climb to 23.7 per cent by 2021,” Mr
Alwazir said.
Contract awards are likely to top the 200 billion riyal mark this year for the first time in four years. He argued the
outlook for the sector in 2020 looks healthy as a result of the continued increase in capex planned, as well as the
fact that the amount dedicated to megaprojects such as Neom and the Red Sea tourism development is set to
double under proposals set out in the kingdom’s preliminary budget.
“This positive announcement places the construction sector at the top of the list of being a leader in driving non-
oil growth over the medium-term,” Mr Alwazir said.

© Asteco Property Management | 2019 | asteco.com
34+ YEARS IN THE MIDDLE EAST
Page 9
VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION
The biggest contracts awarded during the quarter include the award of a 6.2 billion riyal contract by Shomoul
Holding to Nesma & Partners for a new mall to be built as part of The Avenues Riyadh development, a 5.6bn
award by Saudi Aramco for package nine of a new gas plant at Tanajib to Tecnicas Reunidas, and a 4.8bn deal to
Samsung Engineering to build a new tyre plant in Jubail from the kingdom’s National Tire Corporation.
The increase in construction activity in the kingdom is also driving up sales volumes and pricing of cement.
Cement sales in the kingdom rose in October for the fifth consecutive month and were up 17.5 per cent year-on-
year, Jadwa Investment said in a note published last week.
Source: The National
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© Asteco Property Management | 2019 | asteco.com
34+ YEARS IN THE MIDDLE EAST
Page 10
OPTIONS Wednesday, Nov 27, 2019
For those wanting to invest in a property in Dubai, now may be the perfect time to do so.
The right place and the right time are the two most critical factors to consider before making a real estate
investment. At some point in our lives, we all think of buying property. While some look for inspiring spaces where
they can live fulfilling lives with their loved ones, others seek properties that add value to their investment
portfolios.
Irrespective of the reason behind investing in real estate, the decision is based on the same two factors - the right
place and the right time. When it comes to 'the right place', Dubai ticks all the right boxes. The Emirate's stable
and growing economy, pro-people government, cultural diversity, and a future-proof outlook, are a significant
draw for people from every corner of the world. Anyone who has ever been to Dubai or lives here aspires to own
a piece of this magnificent city.
For those wanting to invest in a property in Dubai, now may be the perfect time to do so.
As Dubai evolves into a city of the future, its real estate landscape is undergoing a transformational evolution.
What was once just a go-to destination for global investors seeking good returns, is now maturing into a place
where people are looking to settle in and invest for the long term. The days of unsustainable price growth are
behind us, and Dubai has become a more affordable buyer's market, prompting many to invest.
On September 2, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of
the UAE and Ruler of Dubai, announced the launch of the Higher Committee for Real Estate, which will chalk out a
long-term growth strategy for the sector. The announcement received a phenomenal response from the market,
which witnessed a 134 per cent rise in real estate transactions within a month of the announcement. More and
more people are seeing this as the right time to invest in Dubai's real estate. Here's why you should too.
The price is right
Property prices are perhaps the most influential factor while making a real estate investment decision. At this
stage, Dubai's property market presents the right conditions for buyers, investors and renters alike. Compared to
Q2 2019, in Q3 2019, the average price per square foot declined by 8 per cent for apartments and 6.6 per cent for
villas across the board. However, the decline is softening, and we believe that the market is bottoming out. The
declining prices have prompted many to take advantage of market conditions and make their first property
investment in Dubai. In 2018, nearly 66 per cent of the total investors in Dubai's real estate were first time buyers;
and we expect that this trend will continue in 2019. We are also witnessing a trend where long-term renters are
instead considering buying their own home in the Emirate. Those who invest now are sure to benefit in terms of
long-term returns once there is an uptick in the market in the coming years.
So many options
Today, investors and buyers looking at Dubai's real estate landscape are spoilt for choice. From off-plan projects
to ready-to-move-in units, from gated communities to exquisite branded residences, the market offers unique

© Asteco Property Management | 2019 | asteco.com
34+ YEARS IN THE MIDDLE EAST
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VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION
experiences is the key to success in a market such as Dubai. From Ghalia, our first Shariah-compliant project, to
Damac Hills, our master community that caters to residents' holistic lifestyle needs, our projects have been
inspired by the different cultural needs and aspirations of buyers and investors.
Attractive returns
Dubai has always been a preferred destination for those who are looking at property as an investment. Despite
the decline in prices, at 7 per cent, average rental returns of Dubai in the first half of 2019 remain stronger than in
most big cities around the world. Besides…