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Page 1: NEWS BRIEF 02 - asteco.com fileABU DHABI | AL AIN | DUBAI SHARJAH | JORDAN | KSA © Asteco Property Management, 2019 asteco.com IN THE MIDDLE EAST FOR OVER 30 YEARS ASSET MANAGEMENT

ABU DHABI | AL AIN | DUBAI SHARJAH | JORDAN | KSA

© Asteco Property Management, 2019 asteco.com IN THE MIDDLE EAST FOR OVER 30 YEARS

ASSET MANAGEMENT SALES LEASING

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RESEARCH DEPARTMENT

NEWS BRIEF 02

SUNDAY, 13 JANUARY 2019

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REAL ESTATE NEWS

UAE / GCC / MENA

MENA CONSTRUCTION SECTOR TO GROW AT FASTEST PACE GLOBALLY ON

GOVERNMENT SPENDING

SAUDI ARABIA'S NON-OIL PRIVATE SECTOR GROWTH COOLS OFF IN DECEMBER

UAE PRIVATE SECTOR ECONOMY SLOWS IN DECEMBER ON LOWER OUTPUT AND

ORDERS

2019 OUTLOOK: UAE PROPERTY WILL EXPERIENCE RESILIENCE THIS YEAR

2019 OUTLOOK: HOW THE UAE ECONOMY IS ON THE UPSWING

PROPERTY FIRM SAVILLS REBRANDS IN GULF AFTER CLUTTONS ACQUISITION

NEW $117M OMAN SHOPPING MALL TO OPEN IN JANUARY

SAUDI ARABIA ANNOUNCES PLANS FOR MAJOR ENTERTAINMENT COMPLEX IN

RIYADH

HYATT REINTRODUCES REGENCY HOTEL BRAND IN KUWAIT

CITYMAX HOTELS SET TO OPEN FIRST PROPERTY IN SAUDI ARABIA

2019 OUTLOOK: GULF REGION'S HOTEL INDUSTRY IS RESILIENT AND WILL

CONTINUE TO PERFORM WELL AMID CHALLENGES

WHAT INFLUENCES YOUR HOME MORTGAGE RATE?

TIGHTENING REGULATIONS ALONE WON’T AID UAE REAL ESTATE

WHY NEW GENERATION HOME BUYERS PREFER CONTEMPORARY DESIGN

GCC ECONOMIES TO FOCUS MORE ON DIVERSIFICATION

UAE TO BE FASTEST GROWING GCC ECONOMY IN 2019: IIF

UAE TO GROW 3% IN 2019: WB

DUBAI

HOMEFRONT: 'WHAT ARE THE BEST DUBAI VILLA OPTIONS FOR A BUDGET OF

DH185,000?'

DUBAI SCRAPS BANK GUARANTEES REQUIRED TO SET UP TOURISM COMPANIES

TRADERS TO RECEIVE 50% REDUCTION ON COMMERCIAL FINES IN DUBAI

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REAL ESTATE NEWS

EMAAR UNVEILS PALACE RESIDENCES IN DUBAI CREEK HARBOUR

DUBAI RULER LAUNCHES NEW POLICY TO RAISE UAE LIVING STANDARDS

AVERAGE DUBAI PROPERTY PRICES SOFTEN FURTHER BY 4%

DUBAI RENTS, SALES PRICES TO CONTINUE DOWNWARD SLIP IN 2019, SAYS

ASTECO

DUBAI'S NAKHEEL STARTS WORK ON PALM TOWER INFINITY POOL

UAE DEVELOPER AZIZI AWARDS $58.8M CONTRACTS FOR DUBAI PROJECTS

A DUBAI DEVELOPER FIXATED ON BUILDING TO RENT OUT

DUBAI PROPERTY DECLINES PICK UP SPEED AS MORE UNITS COME INTO MARKET

DUBAI REALTY HOPES WEAK DOLLAR BREATHES NEW LIFE INTO MARKET

HILTON AND AW ROSTAMANI GROUP TO DEVELOP 458-ROOM HOTEL IN BUR

DUBAI

YOUR HOUSE RENT IN DUBAI IS LIKELY TO FALL THIS YEAR

READY-TO-MOVE-IN HOMES GAIN IN POPULARITY IN DUBAI

NAKHEEL HAS A BUSY YEAR FOR PROJECT DELIVERIES

DIFC 2.0: A GLOBAL INVESTMENT HUB IN THE MAKING

DUBAI HOUSE PRICES TO DROP 5 TO 10% MORE THIS YEAR

ABU DHABI

ABU DHABI'S KIZAD ATTRACTED DH1.5BN FDI IN 2018, CEO SAYS

OVER 11,000 ABU DHABI HOMES SET TO BE COMPLETED IN 2019

ALDAR UNVEILS NEW $544M MIXED-USE PROJECT IN ABU DHABI

KIZAD LAUNCHES POLYMERS PARK

NORTHERN EMIRATES

AL HAMRA: KEY PLAYER IN RAK TRANSFORMATION

PARKS, GREEN SPACES WORTH DH100 MILLION BUILT IN SHARJAH

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REAL ESTATE NEWS

INTERNATIONAL

ASIA'S PROPERTY MARKETS JOIN THE GLOBAL SLUMP

ABU DHABI SAID TO MULL SALE OF NEW YORK'S CHRYSLER BUILDING

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ASIA'S PROPERTY MARKETS JOIN THE

GLOBAL SLUMP Wednesday, January 09, 2019

Asia is finally succumbing to the global property slowdown that’s jolted homeowners and investors from

Vancouver to London, with markets in Singapore, Hong Kong and Australia showing fresh signs of softening.

The economic ramifications could be serious. Lower house prices and higher mortgage rates will not only dent

consumer confidence, but also disposable incomes, S&P Global Ratings said in a report last month. A

simultaneous decline in house prices globally could lead to “financial and macroeconomic instability,” the IMF said

in 2018 study.

While each city in the region has its own distinct characteristics, there are a few common denominators: rising

borrowing costs, increased government regulation and volatile stock markets. There’s also dwindling demand

from a force so powerful it pushed prices to a record in many places - Chinese buyers.

“As China’s economy is affected by the trade war, capital outflows have become more difficult, thus weakening

demand in markets including Sydney and Hong Kong,” says Patrick Wong, a real estate analyst at Bloomberg

Intelligence.

Hong Kong

After an almost 15-year bull run that made Hong Kong notorious for having the world’s least affordable property

market, home prices have taken a battering.

Values in the city have fallen for 13 weeks straight since August, the longest losing streak since 2008, figures from

Centaline Property Agency show. Concerns about higher borrowing costs and a looming vacancy tax have

contributed to the slide.

The strike rate of mainland Chinese developers successfully bidding for residential sites is also waning, tumbling

to 27 per cent in 2018 from 70 per cent in 2017, JLL’s recent Residential Sales Market Monitor. Of the 11

residential sites tendered by authorities last year, only three were won by Chinese companies.

“The change in attitude can be explained by a slowing mainland economy,” says Henry Mok, JLL’s senior director

of capital markets. “Throw in a simmering trade war between China and the US, the government has taken actions

to restrict capital outflows, which in turn has increased difficulties for developers to invest overseas.”

Singapore

Home prices on the island, which regularly ranks among the world’s most expensive places to live, posted their

first drop in six quarters in the three months ended December. Luxury was hit the hardest, with values in prime

areas sinking 1.5 per cent.

Government policies are mainly to blame. Cooling measures implemented unexpectedly in July included higher

stamp duties and tougher loan-to-value rules. Extra constraints since then have included curbs on the number of

“shoe-box” apartments and anti-money laundering rules that imposed an additional administrative burden on

developers.

It’s all worked to put the brakes on a home-price recovery that only lasted for five quarters, the shortest since

data became available.

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“Landed home prices, being bigger ticket items, have taken a greater beating as demand softened,” says Ong Teck

Hui, a senior director of research and consultancy at JLL. In Singapore, most people live in high-rise apartments,

called housing development board flats. Landed homes by contrast occupy their own ground space.

Sydney

Sydney-siders have begun to wonder - what sort of economic fallout will there be from the wealth destruction

that comes with the worst slump in home values since the late 1980s?

Average home values in the harbor city have fallen 11.1 per cent since their 2017 peak, according to CoreLogic

data released earlier this month - surpassing the 9.6 per cent top-to-bottom decline when Australia was on the

cusp of entering its last recession.

While prices are still about 60 per cent higher than they were in 2012, meaning few existing homeowners are

actually underwater, it’s economist forecasts of a further 10 per cent fall that’s making nervous investors think

twice about extraneous spending.

The central bank is also worried that a prolonged downturn will drag on consumption and with the main

opposition Labour party pledging to curb tax perks for property investors if it wins an election expected in May,

confidence is likely to be hit further.

Earlier this month, treasurer Josh Frydenberg urged the nation’s banks not to tighten credit any more as the

deepening downturn threatens to weigh on the economy.

Shanghai, Beijing

A crackdown on overheating prices has hampered sales and left values in the nation’s biggest cities around 5 per

cent below their peak. Rules on multiple home purchases, or how soon a property can be sold once it’s bought,

are starting to be relaxed, and there are giveaways galore as home builders try to lure buyers.

One developer in September was giving away a BMW Series 3 or X1 to anyone wishing to purchase a three-

bedroom unit or townhouse at its project in Shanghai. Down-payments have also been slashed, with China

Evergrande Group asking for just 5 per cent compared with the usual 30 per cent deposit required.

“It’s not a surprise to see Beijing and Shanghai residential prices fall given the curbing policies currently on these

two markets,” says Henry Chin, head of research at CBRE Group. An index that measures second-hand home

prices in Beijing has been falling since September while one that tracks Shanghai has been on the decline now for

almost 12 months, he says.

Source: The National

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HOMEFRONT: 'WHAT ARE THE BEST DUBAI

VILLA OPTIONS FOR A BUDGET OF

DH185,000?' Wednesday, January 09, 2019

Our family is growing; we have two sons with another due in March. We live in a three-bedroom apartment but

now think a villa would be best. Which areas are offering the best value for rental? We have a budget of

Dh185,000 per year and could do one or two cheques if needed to secure a better deal. I work in Jumeirah Lake

Towers and my wife in the Dubai International Financial Centre. PF, Dubai

The rental property market saw softening prices in 2018 and with more in inventory coming on stream, the future

looks to be more of the same with in some cases even better rental deals to be had in 2019. Presumably you

would be looking at four-bed houses now that your family is growing so given your location of work and budget

constraints, I recommend the following areas, where there are many choices of great properties.

1. Al Furjan

This is presently the only villa/townhouse community within walking distance to the Metro - though the line is still

under construction. In this community, a four-bed townhouse can be found for as low as Dh110,000 up to

Dh140,000. Detached four-bed phase 2 villas of approximately 4900 square foot can be found from Dh156,000 to

Dh200,000.

2. Jumeirah Park

This is a convenient location for access to JLT. A four-bedroom Nova villa, for example, starts from Dh165,000.

3. Jumeirah Islands

This location is ultra convenient for JLT, with four-bed townhouses starting at Dh180,000. Being able to offer the

rent cheque in one or two payments will put you in a strong bargaining position, so I’m sure you will find exactly

the right property in no time.

Is there a limit on how much my landlord can increase my rent by in Dubai? We have been in our business Bay

apartment for three years and it has been going up by Dh5,000 year-on-year. We now paying Dh110,000. AW,

Dubai

A landlord is legally only allowed to raise the rent as per the Real Estate Regulatory Agency rental calculator. The

maximum rent increases allowed is as per Decree 43 of 2013, which determines the increase in rent for

properties in the emirate of Dubai.

As per Article 1:

• Any property rental value that is less than 10 per cent of the average similar rental amount is not entitled to any

increase in rent.

• When the rent is less than between 11 to 20 per cent of the average similar rent, a 5 per cent increase is allowed.

• When the rent is less than between 21 to 30 per cent of the average similar, a 10 per cent increase is allowed.

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• When the rent is less than between 31 to 40 per cent of the average similar, a 15 per cent increase is allowed.

• A 20 per cent increase on the rent is allowed if the rent is less by more than 40 per cent of the average similar

rent.

If your landlord insists on an amount higher than the amounts stated above, and you cannot arrive at an

agreement, you will have no choice but to vacate and seek alternative accommodation.

Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for 34 years in

London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only.

Source: The National

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MENA CONSTRUCTION SECTOR TO GROW

AT FASTEST PACE GLOBALLY ON

GOVERNMENT SPENDING Tuesday, January 08, 2019

The construction sector in the Middle East and North Africa will grow at the fastest pace globally in 2019 as

regional governments continue to invest in infrastructure projects and rebuild conflict areas, according to a new

report.

The Mena construction industry is estimated to grow on an average 7.5 per cent year-on-year in 2019 and will

expand at an average of 6.8 per cent every year until 2022, Fitch Solutions said in a report on Tuesday. Oman,

Egypt and Iraq will drive most of the region's construction activity.

"Our bullish forecast is underpinned by strong government support for infrastructure development, expansive

economic diversification plans, investment to improve logistics connectivity, and reconstruction efforts in conflict

zones," Fitch Solutions said.

The construction sector in the broader region, particularly in the six-member economic bloc of the GCC that

heavily relies on the sale of hydrocarbons for revenues, took a hit after sovereigns in the region suspended

construction projects on the back of a three-year oil price slum. Oil prices, which fell below $30 a barrel in the first

quarter of 2016, have since recovered as governments seek to build sectors from financial services to tourism.

Of the 16 countries tracked by Fitch Solutions in the region, all are expected to see growth with the exception of

Yemen, where it forecasts a 1.8 per cent contraction as the country's four-year civil war has crippled the

construction sector.

Efforts to rebuild key infrastructure in Libya and Iraq, where the security situation is expected to improve, will

drive construction growth, the report said.

Fitch Solutions expects efforts by the Arabian Gulf states to diversify their economies away from oil and their

plans to build large-scale developments such as Dubai Expo 2020-related projects, the Riyadh Metro and Oman's

plastics industry complex, will be a boon for contractors.

"Government spending on infrastructure will continue to be a crucial factor supporting construction industry

growth," the report noted.

Egypt's construction sector is projected to grow 10.8 per cent year-on-year in 2019 as government investment

backs a packed pipeline of projects aimed at addressing inadequate infrastructure and the needs of fast-growing

population, with numerous power, commercial, industrial and transport developments under construction.

The GCC's construction sector is expected to outperform the broader Mena region's average growth rate in 2019.

The UAE and Saudi Arabia will grow below the regional average at 6.4 per cent and 5.5 per cent respectively,

partly because both have a well-developed infrastructure network and have already implemented some of their

plans for economic diversification, the report said.

Source: The National

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DUBAI SCRAPS BANK GUARANTEES

REQUIRED TO SET UP TOURISM

COMPANIES Tuesday, January 08, 2019

Dubai will waive bank guarantees required to set up tourism companies as the emirate seeks to lower the cost of

doing business and attract investments in line with government initiatives to stimulate the economy.

The move will exempt more than 2,000 travel and tour operators from bank guarantees worth a total of about

Dh250 million and free up capital to reinvest in their businesses, Dubai Tourism and Commerce Marketing said in

a statement on Tuesday.

"Relaxing regulations in support of the business community, especially supporting start-ups and SMEs, is

fundamental for sustained sector growth," Helal Almarri, director-general of Dubai Tourism, said. It is "a very

positive signal for prospective investors and new ventures to launch tourism projects by taking advantage of the

quick and hassle-free processes in place”.

Dubai has slashed various corporate and government fees as part of efforts to increase the emirate's

competitiveness and stimulate business growth after the introduction of a five per cent value-added tax (VAT) last

year. The emirate has set a target to attract up to 25 million visitors annually by 2025 and to become the world’s

most visited destination. Tourism numbers remained flat at 11.58m visitors in the first nine months of 2018

compared to the same period in 2017, according to Dubai Tourism data. The rate of annual passenger growth at

Dubai International Airport in 2018 has decelerated after years of massive expansion.

Before the new deregulation measure, tourism companies were obliged to provide bank guarantees ranging from

Dh100,000 to Dh600,000 as a pre-condition to acquire a trade license from the Department of Economic

Development (DED). The amount depends on the type and number of business activities that the company will

engage in.

The DED totaled the bank guarantees paid by each of the 2,000 companies to arrive at the Dh250m figure, which

it will exempt operators from paying.

Going forward, investors will no longer need to provide bank guarantees to Dubai Tourism to set up tourism

companies or offer travel and tour-related services in the emirate.

Dubai Tourism earlier proposed a plan to attract more transit passengers to visit the emirate, including

introducing time-share accommodation to attract more families and luxury yachts to stopover in Dubai.

Last year, Dubai slashed aviation and municipality fees as part of initiatives aimed at making it easier to do

business. The emirate will scrap 19 fees related to the aviation industry as it seeks to attract more than Dh1bn of

foreign investments into the sector.

In seeking to diversify its economy from oil, Dubai focused on developing its aerospace sector as part of plans to

boost non-oil revenue, transform the city into a business hub, create jobs and attract tourists.

Open-skies policies, large investments in infrastructure and a foreign investor-friendly business environment

spurred the development of the aviation industry. Aviation will account for 37.5 per cent of Dubai’s gross

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domestic product in 2020 and about 45 per cent of GDP by 2030 from 27 per cent in 2013, according to Oxford

Economics.

Dubai is the world’s fourth most-visited cities after Bangkok, London and Paris, according to a Mastercard annual

survey in 2018.

Source: The National

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SAUDI ARABIA'S NON-OIL PRIVATE SECTOR

GROWTH COOLS OFF IN DECEMBER Thursday, January 10, 2019

Saudi Arabia’s non-oil sector growth cooled off in December, however, the companies in the biggest Arab

economy reported a sustained increase in output on the back of rising demand for goods and services, a survey

found.

The Emirates NBD Purchasing Managers’ Index for Saudi Arabia eased to 54.5, down slightly from November's 11-

month high of 55.2. A reading above the 50-mark indicates growth and below 50 signals contraction. The index is

a composite indicator designed to give an overview of operating conditions in the non-oil private sector economy.

The survey is sponsored by Dubai's biggest lender, Emirates NBD, and produced by IHS Market.

Despite easing since November, output growth last month remained quicker than the average over 2018 as a

whole. The survey indicated that business activity had risen in part due to stronger demand, with companies

noting a further - albeit slightly slower - increase in inflows of new business. New export orders were up for a

third straight month but only fractionally, indicating the pick-up in demand was centred on the domestic market,

it added.

While underlying market conditions in the kingdom were reported to have improved, the survey continued to

point to strong competitive pressures across the private sector and, on average, companies reduced selling prices

to help support sales.

The December’s decrease in average output charges was more marked than seen in the penultimate month of

the year.

“There was a small squeeze on margins as firms reported slight increases in both purchase prices and staff pay,

though costs pressures in general were muted by historical standards,” the survey added.

The latest data showed the continuation of a weak rate of employment growth across the non-oil private sector.

“December’s increase in staffing numbers was in fact the smallest since April 2017, with the vast majority of

companies keeping headcounts unchanged from the month before,” according to the survey. “Similarly, the rate

of growth of purchasing activity also eased, down to the weakest recorded in the survey’s nine-and-a-half-year

history. Stocks rose more slowly as a result, while average lead times on purchased items shortened.”

Source: The National

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UAE PRIVATE SECTOR ECONOMY SLOWS IN

DECEMBER ON LOWER OUTPUT AND

ORDERS Thursday, January 10, 2019

The growth in the UAE's non-oil economy was moderate in December, expanding at its slowest level since

October 2016, as output and new orders fell, according to a survey.

The seasonally-adjusted Emirates NBD UAE Purchasing Managers’ Index, a composite indicator that gives an

overview of operating conditions in the non-oil private sector economy, dropped to 54 in December from 55.8 in

November, the lender said on Thursday. A reading above 50 indicates expansion, while a reading below 50 signals

contraction. The report is sponsored by Dubai’s biggest lender and compiled by IHS Market.

The drop in the headline figure reflected smaller contributions from all five constituent indices, suggesting a

broad slowing of growth across the non-oil private sector at the end of 2018.

The latest expansion of business activity was solid overall as new orders increased again, but was slower than

growth in November. New orders rose at the weakest pace since August. The offering of discounts in a

competitive marketplace reportedly contributed to rises in both activity and new business, according to the

survey.

“Efforts to control costs in a competitive environment led companies to leave their staffing levels broadly

unchanged and reduce their stocks of purchases for the first time in four months,” the survey found.

Efforts to control costs discouraged companies from hiring additional workers at the end of 2018, despite

increasing new business.

December data signalled a slowdown in the rate of growth in new export business. Although orders from abroad

increased for the ninth consecutive month, the rate of expansion was the joint-weakest in this sequence.

Anecdotal evidence suggested that new export business had mainly been secured from clients in neighbouring

countries, the survey said.

Companies generally remained optimistic that business activity will continue to increase over the course of 2019.

Optimism was based on expectations of improving economic conditions and success in securing additional sales

over the next 12 months.

Source: The National

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ABU DHABI'S KIZAD ATTRACTED DH1.5BN

FDI IN 2018, CEO SAYS Sunday, January 06, 2019

Abu Dhabi’s Khalifa Industrial Zone (Kizad) attracted Dh1.5 billion in foreign direct investment during 2018 and

expects to see inflows up to $3bn annually, according to its chief executive.

"Total investment in Kizad is around $60bn,” Kizad chief executive Samir Chaturvedi told reporters.

“Every square kilometre to get fully developed needs around $800m to $1bn in terms of industrial base

development and everything else. Our first phase has been around 50 square kilometres, including the port, and

we’re talking almost around $17 to $18bn,” he added.

Mr Chaturvedi was speaking at the signing of a collaboration agreement between Kizad and Abu Dhabi National

Oil Company (Adnoc) to develop a polymers park within the industrial free zone, adjacent to the $7bn Khalifa Port.

The agreement, which follows Adnoc’s announcement last year of a downstream strategy, including plans to

double refining and and triple chemicals capacities, will see the development of the park to diversify options for

export of products, the state oil company’s downstream director Abdulaziz Abdulla Alhajri told The National on

the sidelines of the event. Borouge, the UAE’s largest chemicals company, which is 60 per cent owned by Adnoc

will also be part of the development of the polymers park, which is expected to be completed by 2025.

The park, which is expected to attract $1.5bn in investment over the next five years will use the facilities of the

adjacent Khalifa Port and Cosco Terminal, launched last year, to reach export markets.

"Abu Dhabi Port launched last month the Cosco terminal, this brings around 2.5 million container capacity,” said

Mr Chaturvedi.

"This capacity is expected to go up by 8 million by 2022-25. All this capacity is being created for the industrial

growth of Abu Dhabi and the regional market that we want to support, so there’s ample capacity, the

infrastructure has been built to support almost 20 million containers,” he added.

Khalifa Port last month inaugurated a $430 million terminal, which will be operated by China’s Cosco Shipping

Ports on the basis of a 35-year concession agreement. Kizad is expected to see increased Chinese investment on

the back of growing trade and logistics ties.

"Later this month we’ll be doing the groundbreaking for a passenger car kind of tyre [plant] with ten million tyres

a year production,” said Mr Chaturvedi.

He confirmed the investor was Chinese, and declined to comment on the value of the investment.

Kizad, currently executing phase one of its industrial development, had leased out 65 per cent of the stretch of 50

square kilometres of land and will announce the master plan for phase two early next year.

"By 2020-21, we should be able to completely sell out this area, the phase one. Phase two, we have already

started master planning 182 square kilometres of area, which is on the east of E11 in Abu Dhabi and master plan

will be finalised by early next year,” said Mr Chaturvedi.

Phase two, once completed, would see $100bn in investment upon completion by 2050, he added.

Source: The National

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TRADERS TO RECEIVE 50% REDUCTION ON

COMMERCIAL FINES IN DUBAI Monday, January 07, 2019

Dubai's Department of Economic Development is reducing commercial fines for traders by 50 per cent and

implementing an automatic settlement system that generates a text message alert for fines.

"The Department of Economic Development is proud to launch initiatives based on the vision and directives of

our leadership, especially when 2019 begins as the Year of Tolerance," said Mohammed Lootah, chief executive of

the department's commercial compliance and consumer protection division.

"The automatic fine settlement facility will contribute to enhancing happiness in Dubai and the emirate’s position

across global competitiveness indicators."

Previously, trading customers had to request a settlement on which the system verified the trader’s eligibility for

any reduction in fines. Mr Lootah said the department received more than 4,650 fine settlement requests in 2017

and 2018 under the previous system.

"The net value of fines settled under the 50 per cent reduction in 2017-2018 was Dh23.4 million. We believe that

the new automated system will be smoother and more flexible as it will automatically adjust the fines and benefit

more business owners," he said.

The reduction is applicable only on fines issued for the first offence in a calendar year and is being overseen by

Mr Lootah's division.

Total trade volumes in Dubai’s economic free zones grew by 22 per cent year-on-year in the first nine months of

2018, making a significant contribution to the emirate’s economy, said the department, which released a report

last month.

Free zone trade hit Dh394bn, accounting for 41 per cent of Dubai’s total trade during the period, according to the

Dubai Free Zones Council, the authority that oversees the emirate’s 24 free-trade areas, which include Dubai

International Financial Centre, Dubai Media City, Jebel Ali Port zone and others.

China topped the list of Dubai’s most significant free-trade partners with a total trade volume of Dh59bn over the

period. Saudi Arabia was second with Dh34.2bn, closely followed by India with Dh34bn.

Total imports in free zones amounted to Dh215bn, while exports and re-exports totalled Dh179bn.

Overall, the free zones generated 31.9 per cent of Dubai’s gross domestic product, the council said.

Source: The National

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EMAAR UNVEILS PALACE RESIDENCES IN

DUBAI CREEK HARBOUR Saturday, January 12, 2019

Palace Residences, a five-star waterfront branded residence development, has been launched by Emaar

Properties in Dubai Creek Harbour.

Palace Residences will bring a boutique waterfront living experience for residents with branded 1, 2, 3 and 4-

bedroom apartments, a statement said.

It added that the homes will be serviced on demand by Address Hotels + Resorts, the luxury hotel and resorts

brand.

Investors will have several benefits including 5-year property management services by Emaar, 50 percent discount

on membership at the Palace Dubai Creek Harbour Spa and pool, as well as 25 percent discount on food and

beverage at the hotel’s outlets.

Palace Residences are adjacent to the upcoming 121-room Palace Dubai Creek Harbour hotel featuring a range of

dining choices and luxury hotel services.

Residents will have access to a host of exclusive amenities in both the residential towers and the hotel including a

rooftop infinity edge swimming pool, signature rooftop lounge and grill, a gymnasium, 24x7 concierge service and

valet parking.

Residents will also be able to use the hotel’s services and amenities on demand, including a modern spa, meeting

rooms, 5-star deluxe hotel service, and all-day dining outlet.

The first homes in Dubai Creek Harbour are scheduled for handover early in 2019. Over 5,000 residents are set to

move in to their homes in Creek Marina this year, with over 12,750 residents to move in next year.

Palace Residences is the first launch in the six square kilometre mega-development in 2019.

Source: Arabian Business

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DUBAI RULER LAUNCHES NEW POLICY TO

RAISE UAE LIVING STANDARDS Thursday, January 10, 2019

Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, has launched a

new national policy which aims to improve living standards in the UAE.

The policy seeks to create "vital residential communities", providing a new model of life in the country, in line with

the National Agenda of the UAE Vision 2021 and the UAE Centennial 2071, state news agency WAM reported.

It includes six key components - a suitable location, integrated facilities, cohesive communities, areas for

interactive living, cultural participation, and smart systems - to prevent the isolation of residential

neighbourhoods and facilitate transportation and communication.

According to the policy, residential communities must contain certain facilities that will support the lives of their

residents and provide a "rich residential experience" such as shared gardens and sporting facilities.

Sheikh Mohammed bin Rashid Al Maktoum said the UAE prioritises the quality of life of its citizens, while its

government has prioritised housing and is achieving sustainability in this vital sector.

"Our goal is to provide an integrated life for every citizen, and not only a place of residence. We want our

residential communities to bring people together and improve their health and social cohesion. The integrated

role of government sectors and authorities is to improve life quality in the UAE," Sheikh Mohammed bin Rashid

said in comments published by WAM.

"Today, we are beginning a new stage in developing vital residential communities, which facilitate and improve

the lives of all citizens without exception," he added.

Sheikh Mohammed directed relevant authorities to begin adopting the policy and activating its regulations in the

design and establishment of all the residential projects around the country.

The policy, which is developed by the National Programme for Happiness and Wellbeing, in cooperation with the

Sheikh Zayed Housing Programme, aims to determine new principles and standards, to create residential

communities that will improve the quality of life of citizens and their communities.

Source: Arabian Business

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ABU DHABI SAID TO MULL SALE OF NEW

YORK'S CHRYSLER BUILDING Wednesday, January 09, 2019

The Chrysler Building, one of the most iconic structures in New York, has been put up for sale by its owners,

Mubadala and real estate group Tishman Speyer.

The owners did not set a selling price, a source close to the sale told AFP on condition of anonymity, confirming a

report that was first published in The Wall Street Journal.

The building in midtown Manhattan, considered an Art Deco masterpiece, was acquired in 2008 by Mubadala,

which paid $800 million for a 90 percent stake.

Tishman Speyer, which had bought the building outright for a reported $210-250 million in 1997, retained a 10

percent stake.

Neither firm would offer a comment when contacted by AFP.

Tishman Speyer has hired real estate group CBRE to manage the sale of the building at the intersection of 42nd

Street and Lexington Avenue.

The announcement comes at a difficult time for the New York real estate market, especially in Manhattan.

Development of the Hudson Yards neighborhood, on Manhattan's West Side, will soon be complete, with more

than 1.6 million square meters of new office and residential space.

That has driven prices down even further for older buildings.

Another factor for potential buyers to consider: the land on which the Chrysler Building stands is one-third owned

by Cooper Union, a private university.

In 1997, Tishman Speyer negotiated a long-term lease with the university that ran through 2147. That deal called

for the annual rent to rise from $7.8 million in 2017 to $32.5 million from 2019-2027, according to documents

seen by AFP.

The value of the land alone was estimated at $679 million in late 2017.

The Chrysler Building, which opened in 1930, stands 1,046 feet (319 meters) tall. It was the world's tallest building,

but only for 11 months, when it was dethroned by the Empire State Building, also in Manhattan.

The building was a personal project for Walter Chrysler, the founder of the car manufacturer that bears his name,

but remained separate from the auto business.

Source: Arabian Business

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AVERAGE DUBAI PROPERTY PRICES SOFTEN

FURTHER BY 4% Wednesday, January 09, 2019

Dubai’s residential sector in the final quarter of 2018 witnessed a continuation of the tough trading conditions

experienced in previous quarters, according to new research by Chestertons.

Average apartment sales prices fell by 5 percent from the previous quarter while average villa prices softened by

3 percent. Year-on-year performance showed that apartment prices declined, overall, by 16 percent and villas by

13%.

Chestertons said the market is still favouring tenants as apartments saw a further 4 percent rental decrease with

a 3 percent drop for villas from the previous quarter, a continuation of a trend which saw an overall 12 percent

annual decline in apartment rental rates and 8 percent for villas.

Its Dubai Market Report Q4 2018, however, also showed that due to increased affordability, completed unit

transactions saw a 22 percent increase in transaction volumes over Q3 and an overall 7 percent uplift across

2018.

“The real estate market recovery in Dubai continues to be hampered by the increasing excess supply being

released to the market. However, our research has highlighted 41 percent of all residential transactions now

relate to completed units, up 6 percent from 2017, indicating a shift in buyers’ interests, with the trend set to gain

further momentum in 2019 as developers offer attractive incentives and long-term payment plans,” said Ivana

Gazivoda Vucinic, head of consulting, Chestertons MENA.

In the sales market, Q4 continued the trend seen throughout 2018 as prices witnessed further declines in both

the apartment and villa markets. In the apartment segment, prices in Dubai Sports City, International City and

Jumeirah Village Circle (JVC) all fell by 9 percent compared to the previous quarter.

Downtown Dubai and The Greens fell by 8 percent and 7 percent respectively but in contrast, Dubai Marina

remained one of the most resilient locations for investors and end users witnessing a decline of just 1 percent.

Annually, it was Discovery Gardens which saw the steepest decline, with prices dropping by 25 percent year-on-

year while the most resilient apartment location was Dubailand with just a 5 percent adjustment, Chestertons

said.

In the villa sales market, Palm Jumeirah observed a further decline in Q4 with a 7 percent decrease while the

Meadows and Springs remained unchanged from the previous quarter and Arabian Ranches fell by just 1 percent.

In the rental market, apartments in Dubai Marina, Dubai Silicon Oasis, Dubai Sports City, Dubailand and

International City, witnessed a 5 percent decline in Q4 while Downtown Dubai, JLT, JVC and Dubai Motor City all

declined by 4 percent from the previous quarter.

“From a rental perspective, Dubai continues to be a tenant-friendly market, with many making significant savings

by renegotiating terms and price with current landlords or moving to a cheaper location within their current

district or relocating to a new community,” said Vucinic.

The addition of new stock and limited new demand continues to place pressure on landlords with many of them

competing on several fronts to retain or attract new tenants with multiple cheques, rent-free periods and in some

cases agency fees being covered.

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According to Vucinic, this could result in landlords taking advantage of the holiday let market, which has been

legal in Dubai since 2016. “With demand for annual contracts weakening and rents continuing to fall, short-term

holiday rental could prove very lucrative, especially in popular locations, particularly as we edge ever closer to

Expo 2020,” she said.

Source: Arabian Business

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2019 OUTLOOK: UAE PROPERTY WILL

EXPERIENCE RESILIENCE THIS YEAR Tuesday, January 08, 2019

Many industries are undergoing quiet transformation as they adapt to the wave of change brought about by an

evolving global economic order, digitisation, and shifting consumer trends. The property industry is a perfect

example of one that is constantly advancing in response to external factors. This is particularly true of the sector

in the Middle East.

2018 has witnessed the introduction of new laws that will bolster the UAE’s reputation as a world-class business

hub and an economic regional powerhouse.

Legislation related to 100 percent foreign ownership, dual licensing and longer visas for highly skilled

professionals working in science, research and medical fields, has reinforced the country’s commitment to

developing a thriving knowledge-based economy and one of the world’s best destinations to conduct business.

Landlords of commercial real estate are evolving to embrace these changes.

We have seen an increase in the consolidation of office space across the UAE in 2018 and this trend will continue

as occupiers look to reduce costs and secure better or more flexible space. We have also noted an increasing level

of interest from Fortune 500 clients who are enthusiastic for overseas expansion and would like to explore

entering the Middle East market or grow their presence in the region.

Asia Pacific corporations are undertaking an increased level of exploratory activity in the Dubai market. Entering

new markets during challenging times with honest and transparent consultancy is key. The ability to provide

tailored solutions that are cost-effective, robust and evidence-based is incredibly important to new clients.

Dubai’s retail sector is highly competitive, among both occupiers and landlords. Differentiation and the

introduction of omnichannel shopping experiences in the former group and flexibility with the latter group will

prove the key to success for many brands.

As more malls, including the highly anticipated Meydan Mall, move closer to completion, it will be important for

existing facilities to continue to innovate to provide destinations that go beyond retail and offer a wealth of

entertainment, wellness and F&B experiences for the whole family. Research will be vital for many retailers.

Globally, some parts of the retail sector have been struggling to adapt to changing consumer trends and habits.

Increasingly sophisticated data analytics into the growing effect of digitisation and experiential shopping at brick

and mortar outlets will be crucial in driving efficiency and enabling retailers to successfully integrate their online

and offline propositions.

Logistics and warehouse space will be an important sector to watch in 2019. As more international brands look to

move into the UAE, sourcing high quality warehouse space – that can be customised to fit client needs – has never

been more important. This past year, we have seen a strong increase in demand for storage space. Access to

land remains a challenge, as does the small size of the rather opaque market. Opportunities, however, do exist in

this sector particularly for investors whose clients are eager to sign longer leases. As the popularity of online

shopping and same-day delivery continues, we can expect the demand for high-quality space to continue to rise

especially in strategic areas such as Dubai South.

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The recent changes in legislation in Saudi Arabia, including amendments to the structure of the Saudi Arabian

General Investment Authority (SAGIA), accelerated investment applications (establishment of businesses) and

direct property ownership for licensed companies, are sure to have a positive effect on the UAE.

Saudi’s entertainment and tourism sectors will grow rapidly, which will hopefully drive more new visitors to the

region. The complimentary offerings of both countries to large corporates will likely boost their commercial real

estate sectors. But the UAE in particular has proven itself adept at reacting to and initiating, new demand for real

estate. And I have no doubt that this will continue in 2019.

Source: Arabian Business

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2019 OUTLOOK: HOW THE UAE ECONOMY

IS ON THE UPSWING Wednesday, January 09, 2019

Let’s be honest; 2018 was a year of mixed fortunes for a raft of different sectors in the UAE and that has affected

market sentiment, no matter which way you want to slice it. That being said, there are fundamental reasons to

have optimism going into 2019, regardless of subdued and, in some cases, depressed sentiment.

Firstly, it’s important to remember that the International Monetary Fund thinks that UAE’s GDP will increase by 3.7

percent this year, a healthy and sustainable pace of growth that is the envy of many of the world’s most advanced

economies. The banking sector is in good shape, with rising profitability and strong capital levels expected to

translate into a pick-up in credit growth. I’ve picked five further areas that I think will be key to boosting growth

and confidence as we enter an important year for the UAE.

One of the great attributes of the UAE’s local governments is their willingness to make quick changes to

regulations when needed. We’ve seen some key changes in laws over the past year, the most prominent of which

has been to provide 10-year visas to certain sections of the expatriate population.

This will not only encourage entrepreneurs and students already in the UAE to stay, but it will also encourage top-

tier workers and investors from overseas to come to the country too.

Over the course of 2018, we’ve also seen an AED50bn stimulus package from the Abu Dhabi government, another

law to allow 100 percent foreign ownership of non-freezone firms, a relaxation on property lending regulations

for banks from the UAE Central Bank and more. While all of these were announced last year, I expect the impact

from these changes to be felt in 2019, and I’m sure that we can look forward to more amendments in the future

as well.

It doesn’t necessarily make the headlines, but foreign direct investment (FDI) into the UAE has remained

impressively strong in recent years. FDI inflows to the country were up by 7.8 percent on the previous year to

AED37.8bn in 2018, and the UAE alone makes up for almost a quarter of all inflows into the MENA region. That

figure is only set to grow following the introduction of the new law concerning foreign ownership of onshore

companies, which could see FDI grow by up to 20 percent this year.

After a difficult couple of years thanks to the low oil price and government-imposed austerity, the Saudi economy

came out of its first recession since 2009 in the first quarter of this year. Jadwa Investment thinks Saudi GDP will

reach 2.2 percent in 2018, before dipping slightly to 2.0 percent this year. That’s a marked improvement on the

0.9 percent decline the Saudi economy saw in 2016. In line with the return to growth has come another expanded

government budget for 2019, an improved fiscal deficit, increased consumer spending and higher foreign

reserves, which rose for the seventh straight month in October.

Why is this important for the UAE? As the Arab world’s biggest economy, Saudi Arabia is an important source

market for its neighbour, with Saudi nationals investing heavily in businesses and property across the UAE, as well

as visiting the country frequently for tourism and work. This year promises to be even more spectacular for

Sharjah, one of the region’s most diversified economies. Not only has UNESCO named Sharjah World Book Capital

for 2019, but it is also another Biennial year, with the city showcasing its status as the Middle East’s top cultural

hub.

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On top of that, the government of Sharjah has just announced yet another record budget, which will see almost

AED26bn spent on infrastructure, economic and social development over the course of 2019. That’s a 10 percent

rise on the year before, and is an impressive example of the government’s desire to invest even during what some

see as a challenging economic environment.

I still see Sharjah as the ‘hidden gem’ of the UAE real estate market. Ever since the government introduced a law

allowing the sale of property to all nationalities in 2014, the Emirate has witnessed exceptional growth, thanks to

strong demand for integrated, well-designed communities that are reasonably priced. Total real estate

transactions rose by 20 percent in 2017 on the previous year, and we’re hopeful that there will be a similar

pattern of growth in 2018.

No outlook on the UAE economy this year would be complete without a mention of Expo 2020. It seems like a

long time since Dubai won the right to host Expo, but I believe 2019 will be the year in which the wider economy

will really start to benefit.

While construction of the Expo 2020 site is on track and on schedule, there are a host of tenders that remain to be

issued for international pavilions, roads and infrastructure, and permanent offices that will remain after Expo. We

should see a host of contracts at the Expo site being handed out in early 2019, which will get the year off to a

positive start.

For Arada, 2019 promises to be another landmark year. We are about to begin the process of handing over our

first ever homes, as units in Phase 1 of Nasma Residences move towards completion. The entire community will

be completed in the first quarter of 2020, and we’ll also be launching the first phase of Aljada’s Central Hub, a new

leisure and entertainment destination for the UAE, which has been designed by Zaha Hadid Architects, in Q2. As a

new company, it’s time for us to deliver on our promises to our buyers and to the Sharjah community.

Source: Arabian Business

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PROPERTY FIRM SAVILLS REBRANDS IN

GULF AFTER CLUTTONS ACQUISITION Monday, January 07, 2019

International real estate advisor Savills has announced the rebrand of its Middle East business following the

acquisition of Cluttons Middle East.

The firm, which was previously represented by associates in the Middle East, has completed a successful six

month integration process with the region’s longest-established advisor Cluttons Middle East, which will now be

known as Savills.

It will operate across five countries including Bahrain, Egypt, Oman, Saudi Arabia, and the UAE, with seven offices

employing 230 people, offering the broadest geographic reach of any real estate consultant in the region.

Savills will further strengthen these in-country teams with new hires and key recruitment to grow the business

further, it said in a statement.

Savills said it will also expand its Middle East property management business with a specific focus on commercial

assets.

Steve Morgan, CEO of Savills Middle East, said: “Over the past six months, we have been fully immersing our

existing Middle East team with the international Savills brand, and refining processes for a seamless transition for

our clients. There are many complementary synergies and a lot of benefits for partnering with such a well-

established global entity, particularly for our customers who can access a broader range of international services

and networks.

"We believe there are significant growth opportunities from leveraging Savills’ global reach. Clients will benefit

from a team with a comprehensive regional presence and years of local knowledge and experience, backed with a

world-class international network and robust research covering all sectors and markets.”

James Sparrow, Savills EMEA CEO, added: "We have seen an extremely positive start from our newly acquired

Middle East business with some very exciting opportunities arising from the strong collaboration between our

teams both in region but across EMEA and beyond. They are a leading force in the Middle East and have shown us

they share our values and culture with a priority for the highest level of client care.”

Savills is a UK listed firm, established in 1855 with a global office network of over 600 wholly owned and associate

offices employing more than 35,000 people in over 60 countries throughout the Americas, the UK, Europe, Asia

Pacific, Africa and the Middle East.

Source: Arabian Business

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OVER 11,000 ABU DHABI HOMES SET TO BE

COMPLETED IN 2019 Sunday, January 06, 2019

Increased market supply and bearish market conditions led rental and sales prices to continue a downward trend

in Abu Dhabi, according to a new a Q4 market report from property services company Asteco.

According to Asteco, there were approximately 6,200 residential units delivered in the UAE’s capital in 2018,

including 4,500 apartments and 1,700 villas. Approximately half the supply was concentrated on Abu Dhabi’s

islands, including Al Reem and Yas Islands.

There were, however, a number of projects that were delayed and that are spilling over into 2019, such as the

anticipated Omega Tower on Reem Island.

Regarding rents, he report noted that average annual rents declined 10 and 9 percent, respectively, which Asteco

attributes to increased supply and market conditions.

Additionally, demand for office space was generally subdued in 2018 because of limited business and

employment growth. As a result, office rental rates for offices fell, on average, 4 percent, although several mid

and low-quality commercial buildings recorded increases of 10 percent or more.

The report added that off-plan properties – which were being offered at attractive rates with flexible payment

options – continued to generate interest and, in some cases, high demand.

Apartment sales prices, for their part, were found to have decreased 9 percent on average in 2018, with the

highest declines recorded in Marina Square and Sun & Sky Towers on Al Reem Island.

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In the villa market, sales prices softened 4 percent, with the highest decreases in Al Raha Gardens and Al Reef

Villas.

2019 Outlook

Asteco forecasts that approximately 11,200 residential units will be completed in 2019, including 2,350 on Reem

Island, 2,500 at Al Raha Beach, 1,300 on Yas Island and 1,250 on Saadiyat.

This new supply, in turn, is expected to exert further pressure on rental rates.

“Whilst some residents are expected to downsize and seek value-for-money properties, others will take advantage

of the increased choice at lower rates to upgrade,” the report added, noting that demand for office space will

likely remain “tepid”.

Sales prices are also expected to continue to soften, although Asteco believes that the rate of decline is expected

to slow towards the end of 2019.

Source: Arabian Business

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DUBAI RENTS, SALES PRICES TO CONTINUE

DOWNWARD SLIP IN 2019, SAYS ASTECO Sunday, January 06, 2019

Despite lower than anticipated handover volumes, there were steady rental rate declines across all asset classes

in Dubai in 2018, according to a Q4 real estate report from property services company Asteco.

In the report, Asteco said it recorded the delivery of 15,000 residential units over the course of the year, of which

12,000 were apartments and 2,750 were villas.

Additionally, office supply volumes picked up towards the end of the year, with an additional 2.86 million square

feet in total. According to Asteco, the pace of new projects eased over the course of the year as developers

“adopted a more cautious approach” in response to lower demand and growing supply.

Despite the overall handover volume being below expectations, Asteco said additional supply “was still significant”

and resulted in rental declines averaging 10 percent for apartments, 10 percent for villas, and 5 percent for

offices, although some areas “significantly” under or outperformed.

Sales prices across all asset classes were found to have declined by an average of 13 percent.

“Emphasis continued to be unit price points, as opposed to the rate per square feet,” the report notes. “The

steady decline in sales prices for completed projects has improved affordability and hence opened the market to

a wider investor pool and facilitated a rise in end-users and first-time buyers.”

2019 Forecast

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According to Asteco, construction activity during 2019 for committed projects is expected to continue unabated,

despite a slowdown in new project launches, largely due to construction-linked and post-completion payment

plans, which ensure that payments are linked to construction milestones.

The additional supply, combined with handovers previously scheduled for 2018, will see an additional 30,000

residential units and 3.6 million sq. ft of office space brought to the market.

While Asteco predicts that the additional supply will result in continued pressure on rents, the rate of decline is

expected towards the end of 2019. Generally low rents are also expected to help tenants move up in terms of

size, quality and location, the report added.

Sales prices are also expected to continue to fall in 2019.

“Although the focus will remain on affordable developments, transaction volumes are anticipated to rise as

residents take a longer-term view on living in Dubai,” the report added.

“While market conditions mean that it is unlikely that LTV [loan to value] ratios will change, we believe that

developers, banks and other financial institutions will become more creative and introduce solutions to bypass

the high down payment required to avail a mortgage.”

Source: Arabian Business

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DUBAI'S NAKHEEL STARTS WORK ON PALM

TOWER INFINITY POOL Tuesday, January 08, 2019

Master developer Nakheel has started work on the rooftop infinity swimming pool at The Palm Tower, its 52-

storey, luxury hotel and residential complex at the heart of Palm Jumeirah in Dubai.

Perched 210 metres above ground and covering 775 square metres, the infinity pool – one of the highest in the

world – borders all four sides of the building.

The pool – which will hold 930,000 litres of water – is on the 50th floor of The Palm Tower. Above the pool will be a

podium housing a 51st level speciality restaurant and a 52nd storey public viewing deck, 240 metres high.

Construction of the rooftop dining viewing deck complex will begin soon.

Located at the heart of Palm Jumeirah, The Palm Tower comprises a 289-room St Regis hotel, 432 luxury

residences and a number of dining and leisure facilities. The hotel occupies the first 18 floors, with fully-furnished

studios and one, two and three bedroom apartments on the upper floors.

Fit out of the St Regis – due to open later this year – has already begun, Nakheel said.

The Palm Tower is directly connected to the under-construction Nakheel Mall which is due for completion this

year.

Source: Arabian Business

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UAE DEVELOPER AZIZI AWARDS $58.8M

CONTRACTS FOR DUBAI PROJECTS Tuesday, January 08, 2019

UAE-based Azizi Developments has awarded a contract valued at over AED216 million ($58.8 million) to Chirag

Contracting to develop four plots with a total area of more than 1 million square feet.

The contract is divided into two parts with the first valued at AED164.8 million for developing three plots, with a

total area of over 769,515 square feet in phase one of Azizi Riviera, the flagship waterfront development in

Meydan One.

The second part of the contract is dedicated to a plot in Al Furjan with a total built up area of over 245,244 square

feet, which is valued at AED51.6 million.

Farhad Azizi, CEO of Azizi Developments, said: “Delivering our projects as per schedule is our top priority and a

commitment to our customers. Our new contract with Chirag Contracting, among several others, underlines our

focus on working with best-in-class contractors to develop our developments to the highest standards of quality

and aesthetics.”

Launched in July 2017, Azizi Riviera is the company's flagship community development inspired by the French

Riviera lifestyle.

Azizi Developments said it is on schedule with the progress of the project with several residences in the first

phase set to be handed over this year.

Upon completion, Azizi Riviera will have 71 mid-rise buildings, with over 16,000 residences including studios, and

one-bedroom, two-bedroom and three-bedroom apartments.

Source: Arabian Business

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ALDAR UNVEILS NEW $544M MIXED-USE

PROJECT IN ABU DHABI Tuesday, January 08, 2019

Aldar Properties on Monday announced the launch of its newest AED2 billion ($544 million) development,

Alreeman, in Alshamkha.

The mid-market, mixed-use development offers residential and commercial land plots available for purchase by

all nationalities, said the developer in a statement.

Alreeman is spread over an area of 2.8 million square metres and land plots include a series of residential clusters

that will feature single and multi-residential villas and apartments, complemented by retail space, F&B, mosques,

sports, education and commercial facilities, it added.

Sales for the land plots will commence on January 19, with prices starting from AED690,000 for villa plots and

AED4.69 million for commercial plots.

Alreeman will provide a network of walkable gardens, parks, open spaces interwoven with greenery and cycle

tracks that facilitate public life and social interaction.

Construction is expected to start this year with infrastructure enabled land targeted for handover to customers in

2021.

A key feature of Alreeman is the purchaser’s ability to design their villa or apartment building according to their

exact specifications within the approved GFA limits, said Aldar.

Talal Al Dhiyebi, CEO, said: “The launch of Alreeman builds on Aldar’s successful development strategy and further

expands our focus in to new areas of Abu Dhabi. Catering to the mid-income segment, this development

responds to market demand to live in a desirable community with a wide range of facilities while also appealing to

investors looking to construct apartment buildings or villas to generate recurring income.”

The development is in close proximity to some of Abu Dhabi's major infrastructure projects and lifestyle

destinations, including Yas Island, Zayed City, New Al Falah, Masdar City, Mohammed Bin Zayed City and Abu

Dhabi Airport Free Zone.

Source: Arabian Business

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NEW $117M OMAN SHOPPING MALL TO

OPEN IN JANUARY Tuesday, January 08, 2019

UAE-based retail giant Majid Al Futtaim has announced that its new mall in Oman is scheduled to open in January.

The announcement follows a site visit to the OR45 million ($117 million) City Centre Suhar development by a

number of Omani officials.

Husam Al Mandhari, senior mall manager – Oman – Shopping Malls at Majid Al Futtaim - Properties, welcomed

the officials on a behind-the-scenes tour in the final phase of construction on City Centre Suhar.

When operational, the mall will offer more than 120 stores, a nine-screen VOX Cinemas, a 7,348 sq m Carrefour,

entertainment experiences and a variety of dining options.

Located on Al Batinah main road, the mall will add 35,301 square metre of gross leasable area to the sultanate’s

booming retail sector, the company said in a statement.

It added that the opening of City Centre Suhar is part of Majid Al Futtaim’s investment plans to increase the

company’s total investment in the sultanate to OR705 million by 2020.

Source: Arabian Business

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SAUDI ARABIA ANNOUNCES PLANS FOR

MAJOR ENTERTAINMENT COMPLEX IN

RIYADH Thursday, January 03, 2019

Saudi Arabia plans to build an 100,000 square-metre entertainment complex in Riyadh, according to the state-run

Saudi Press Agency.

According to SPA, the Saudi Entertainment Ventures Company – a wholly owned subsidiary of the Public

Investment Fund – plans to build the complex on Riyadh’s Eastern Ring Road at the intersection of King Abdullah

Road.

Abdullah bin Nasser Al Dawoud, the chairman of the board of directors of the Saudi Entertainment Ventures

Company, said that the first-of-its kind project will include green and open areas for sporting activities,

entertainment and live shows.

Additionally, the complex will include a wide variety of local and international restaurants and cafes, as well as

cinemas.

The value of the investment was not disclosed.

Investments

The PIF has said that its combined projects will eventually be able to cater to more than 50 million visitors each

year, provide 22,000 direct jobs and contribute SAR 8 billion ($2.13 billion) to Saudi Arabia’s GDP by 2030.

In 2018, PIF established SEVEN with an initial funding amount of SAR 10 billion ($2.67 billion). The company has

announced plans to set up 20 entertainment complexes around the kingdom.

SEVEN also opened the kingdom’s first cinema in 40 years last year in partnership with AMC Group.

Other planned entertainment ventures in Saudi Arabia include a Six Flags in Qiddiya, which will also be capable of

hosting motorsports and cultural events.

Source: Arabian Business

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HYATT REINTRODUCES REGENCY HOTEL

BRAND IN KUWAIT Saturday, January 12, 2019

Hyatt Hotels Corporation has announced the opening of Hyatt Regency Al Kout Mall, marking the reintroduction

of the Hyatt Regency brand to Kuwait.

The opening marks the first of two Hyatt properties in collaboration with Tamdeen Group, the second of which is

Grand Hyatt Kuwait, set to open in 2020.

Hyatt Regency Al Kout Mall offers 200 guestrooms, including 53 Junior Suites, 67 Regency Suites and 14 two-

bedroom Premium Suites.

It also features a range of culinary experiences including Andiamo, an Italian restaurant, and 25,833 square feet of

flexible meeting spaces and the Regency Ballroom while Club Olympus offers a 24-hour fitness centre and sauna.

"With the convenient location of the property and our exceptional hotel facilities, we are thrilled to welcome

guests to Hyatt Regency Al Kout Mall, an ideal space for our guests to work, engage or relax," said Fadi Akeel,

general manager Hyatt Regency Al Kout Mall.

"We are excited to welcome the Hyatt Regency brand back to Kuwait," said Mohammed Jassim Khalid Al Marzouq,

chairman of Tamdeen Group. "We look forward to our continued collaboration and future openings in this

dynamic city."

Source: Arabian Business

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CITYMAX HOTELS SET TO OPEN FIRST

PROPERTY IN SAUDI ARABIA Friday, January 11, 2019

Citymax Hotels, part of Dubai-based Landmark Group, has announced the launch of Citymax Riyadh, scheduled

for mid-2019.

The company said the project is a key milestone for the mid-market brand, further strengthening its expansion

plans across the Middle East and North Africa (MENA) region.

Located in the Olaya district, which is the primary business district of Riyadh, Citymax Hotel Riyadh is the brand’s

first hotel in Saudi Arabia and the second outside of the UAE.

Citymax Hotels chief operating officer, Aly Shariff, said: “Mid-tier travel as a whole is on the rise, which puts us in a

very favourable position as the demand is certainly there and growing. This is especially true in Saudi Arabia, as

the Kingdom’s Vision 2030 to drive economic diversification has had a major impact on the hospitality industry.

"We are excited to introduce our brand to the Kingdom as we open our first Citymax Hotel in the capital, and

spearhead further development across the region.”

The three-star property will offer a total of 65 rooms, as well as an all-day dining restaurant, Citycafé and a

Lavazza coffee shop. Other facilities include meeting rooms as well as a fully-equipped gym and sauna.

Source: Arabian Business

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2019 OUTLOOK: GULF REGION'S HOTEL

INDUSTRY IS RESILIENT AND WILL

CONTINUE TO PERFORM WELL AMID

CHALLENGES Tuesday, January 08, 2019

I remember going to a hotel conference in the USA in 2001. It was the peak of the cycle, new hotel supply was

rising and demand was starting to fall off. A negative adjustment to hotel performance was clearly on the way.

However, hoteliers were in denial. One speaker said that there would be no downturn. A second accepted that

there might be – but was confident that it wouldn’t affect the cities in which his company ran hotels.

A third bought into the story of the downturn and freely admitted that it would indeed impact the cities where he

owned hotels. No problem though, he said, because his hotels were so well located that they would be little

affected. They were all wrong. When the crash happened, it swept everyone before it.

A similar mood of denial prevailed in the UAE at the start of 2018. At a debate held at the Gulf and Indian Ocean

Hotel Investors’ Summit in February, speaker after speaker was confident that Dubai, Abu Dhabi and Saudi Arabia

would all enjoy a “soft landing”. By April at Arabian Travel Market, the mood was darkening and by the HOFTEL

Members’ Summit in Dubai in October it was quite sombre.

At present, however, unlike the US downturns of 2001-2003 and 2008-2012, the market in the UAE is quite

stratified. Resort hotels in some of the markets like the Palm Jumeirah, Yas Island and Saadiyat are generally

doing reasonably well and in a few cases, booming. In contrast, hotels in downtown Dubai (Deira and Sheikh

Zayed Road) and downtown Abu Dhabi are being hit and having to discount rates heavily in order to fill up.

Meanwhile, concerns about oversupply are rising in Saudi Arabia and even Muscat.

Overall, it is clear that the next few years may be challenging for hotel and serviced apartment owners around the

region. What can they do to preserve their bottom lines?

The answer adopted by many hoteliers at the moment is to slash rates and suck in low-rate business. That

approach can work for a short-time, but if the supply issue lasts for several years, as it probably will, then it poses

the danger of dragging down the entire market.

However, there is a wide range of other approaches to support profits which are worth consideration. For

example, owners should consider reviewing their cost structures to see where fundamental changes can be

made.

These may include combining back office functions, “complexing” with other hotels sharing the same owner or

operator, and looking closely at their supplier contracts and their management agreements with operators to

ensure that key business partners are fulfilling all of their obligations.

Another option would be to seek out new market segments, especially from India, China and Africa as well as

South East Asia, the ASEAN region is still booming and flights from there are relatively inexpensive. The process of

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opening up these new markets involves genuine sales and marketing efforts rather than just sending out offers or

maximising e-commerce channels.

Owners should also review their use of under-utilised areas, for example, converting restaurants to meeting

rooms or vice versa; renting out some of the ground floor or even the parking and asking tricky questions like

“Can the GM’s office make way for a saleable suite?”

Now is the optimum time, if they can afford it, for owners to use the slow market as an opportunity to do

renovations. Finally, a number of owners with portfolios of hotels and serviced apartments are now moving from

management agreements to a franchise.

The good times will roll again one day. The region is extremely resilient, every destination is adding new

attractions and tourism infrastructures are being upgraded. In the meantime, owners don’t need to sit idly by and

suffer from lower profits. There is still plenty of scope for value-added asset management.

Source: Arabian Business

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A DUBAI DEVELOPER FIXATED ON

BUILDING TO RENT OUT Friday, January 12, 2019

Arif Mubarak never gets bothered that he is building residential communities and thousands of homes without

any plans to sell even one of them. Because his sole purpose — even fixation — is to keep renting them out.

So, this is one CEO of a real estate company in Dubai whose conversations are not peppered with “off-plan” or

“ready” properties. But if the subject veers towards “rent”, that’s when Mubarak gets all animated. As CEO of

Dubai Asset Management and a portfolio of 10 communities with a population of 100,000 tenants, guess he has

every right to do that.

“The sales market is there for them [residents] if they require it,” said Mubarak. “Our purpose is to enable them to

call Dubai home through the rental option. Rentals are still the majority in the real estate market in Dubai, and

that’s a fact.

“We believe that sector requires a lot of attention and there are tremendous opportunities to be explored,

whereby you can tap into a bigger spectrum of people rather than focusing on just sales.”

It was early last year that Dubai Asset Management came into being after the parent entity, Dubai Holding,

created new stand-alone businesses that includes Dubai Retail. The communities under Dubai Asset Management

include Remraam, Al Khail Gate 1 and 2, Dubai Wharf, and the Ghoroob and Shorooq clusters in Mirdif.

But the ongoing slowdown in Dubai’s property market is not just confined to the sales side … even rentals are

under constant pressure. So, isn’t this rental-only focus hurting his company’s bottom-line? More so as other

government-owned developers have a mix of properties for sale and rental.

Mubarak insists Dubai Asset Management has built in enough cushion against current market forces. “As we

speak right now, we are sitting at a 95 per cent occupancy rate across the board,” the CEO added. “On top of that,

the average stay within our communities is almost 4.5 years compared to market average which is 3.5 years.

“For me, it’s about building cohesive, fully-fledged building communities.”

But with rents sliding across the board, isn’t Dubai Asset Management seeing the need to adjust its own rates?

“We are flexible — we respond to customers and our communities. I say we’ve been able to hold our rental rates

better than the market in 2018 and also maintained our occupancy rates.

“This signals that we are heading in the right direction. We respond by offering a variety of options, including

flexible (rental) payments. (That means) multiple cheques, monthly payments rather than the traditional three or

four yearly cheques.

“It’s how much you understand the market. We need to understand what’s happening first — before jumping in

and giving options to customers.”

According to real estate consultancies, forecasts for the year suggest rents and sale prices will remain under some

duress. More handovers of homes at freehold communities will be the main contributing factor.

Amid these external factors, Dubai Asset Management is not solely reliant on the individual tenant to lease and

stay in its homes. Its portfolio has 40 per cent made up of corporate clients, who typically take long-term leases of

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between five and 10 years. Those long-term leases also do their bit for sustaining cash flows, and a the company

is offering this to “our other clientele, especially when it comes to renewals”.

But don’t call what the company does as a leasing agency … that’s unlikely to go down well with Mubarak. “We are

an asset manager — not a leasing agency or a property manager,” the CEO said. “It’s critical that you own it. One

of the successful models that we have seen is to manage the end-to-end life cycle journey of the customer, all the

way from the initial check-in of the apartment to the final check out. One of the successful measures, based on

customer feedback, is that the owner is there to support them and ensure they have a smooth process.

“We are one of the largest property asset management companies in the UAE. Being an asset manager who

actively develops, acquires and manages these assets, it’s critical for us.”

Would it mean the company would only build its own projects and not acquire what may come into the market

from other developers? “We are building our own communities — acquisition is an option but not a focus.

“As an institutional asset management company, we are market-driven and cautious when it comes to growth. It

is driven purely on evaluation and market trends. We are growing our portfolio within the existing land bank of

Dubai Holding land bank.”

Another ‘build-to’ model makes its mark

Anyone in the real estate space would have come across the ‘build-to-own’ or ‘build-to-rent’ strategies. Dubai

Asset Management wants to add ‘build-to-suit’ into this mix.

This is where it develops properties based on the specs provided in advance by corporate clients for their

workforce accommodation needs.

“The first one was on Al Ain Road, called Rahaba residence,” said Arif Mubarak. “It was built specifically for two

corporate clients and has 100 per cent occupancy. That could be an area for expansion. We are talking to a few

corporates and we see it as a product required in the market.”

CEO Profile

Arif Mubarak fast-tracked his way into senior positions at Dubai Properties as the real estate market eased its way

out of the downturn brought on by the global financial crisis in 2008-09. In fact, he was part of a generation of

Emiratis who came into management prominence at government owned enterprises during the period.

He has been at Dubai Holding for more than 18 years, and was a founding member of the management team

there. Mubarak was also founding member of Dubai Media City under the Tecom Group.

Source: Gulf News

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DUBAI PROPERTY DECLINES PICK UP SPEED

AS MORE UNITS COME INTO MARKET Wednesday, January 09, 2019

Dubai: Property prices in Dubai started falling at a faster pace towards the end of the year, most likely brought on

by the sheer volume of new homes being delivered. Much the same was being felt in the residential rental space

as well, according to the latest Knight Frank report.

The report estimates that in the three months up to November, values were down 4 per cent. Taken over a 12-

month timeframe, the rate of decline is pegged at 4.1 per cent.

On rentals, the three-month period saw a 3.9 per cent dip, while from a year-on-year perspective, the decline was

8.6 per cent.

“While demand had eased in 2018, price falls are more due to the considerable level of supply delivered in 2018

and that which is expected to be delivered in 2019,” the report notes.

Of the initial 32,727 units forecast to be delivered last year, Knight Frank reckons 22,476 units reached the finish

line.

But that’s still considerable given that in each of the previous three years, the tally was well under 15,000 homes

or so.

“This increase in supply, in addition to the unabsorbed supply from previous years has led to the extended

pressure on prices and rents which we are witnessing, this trend is expected to continue throughout 2019.”

What of buying activity? The first two quarters of 2018 proved quite burdensome, but since then the decline in

transactions has moderated with deal flows falling 3 per cent year-on-year to November 2018.

In Abu Dhabi, average sale prices were down 4.7 per cent in the year to November, with those on apartments

falling 4.4 per cent while those for villas or town houses declining by 4.9 per cent.

The biggest declines were for apartments on Al Reem Island, which fell 5.7 per cent, and on Saadiyat Island and Al

Reef villa areas, where prices are down 5.6 per cent apiece.

Rents across Abu Dhabi recorded an 8.7 per cent drop in the year to November.

Source: Gulf News

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AL HAMRA: KEY PLAYER IN RAK

TRANSFORMATION Wednesday, January 09, 2019

Ras Al Khaimah (RAK) has seen unprecedented growth in several key industry drivers in recent years, which has

resulted in a pipeline of residential, leisure, retail and hospitality projects to be delivered over the next few years.

A range of public and private initiatives has seen the emirate develop a reputation as a regional hub for world-

class, large-scale developments.

This isn’t surprising given the new vision of the emirate announced by the ruler His Highness Shaikh Saud Bin

Saqr Al Qasimi, where long-term, sustainable plans and strategies have been put in place to stimulate tourism

growth and develop the real estate sector.

This vision is shared by Al Hamra, one of the UAE’s foremost brands.

A leading master planner and premium luxury developer in the northern emirates, Al Hamra has been integral in

transforming the real estate, hospitality and retail landscape since launching in 2003.

“Ras Al Khaimah is emerging as a preferred investment and tourism destination leveraging its geographic location

and business growth potential,” said Benoy Kurien, Group CEO of Al Hamra.

“When combined with ambitious tourism growth targets of one million visitors by the end of the year and 2.9

million by 2025, it is easy to see why the emirate is looking forward to a fruitful future.”

Al Hamra Village is the group’s 77-million-sq-ft development consisting of 1.5km of beach line, 4,000 homes, five

hotels, including the luxurious Waldorf Astoria and recently opened Ritz-Carlton, an 18-hole championship golf

course and 200-berth marina.

It has seen the residential vertical of the business remain steady due to the value-for-money and attractive

lifestyle proposition.

Even against a backdrop of low-priced, smaller properties launched in Dubai’s affordable housing segment, Al

Hamra remains popular for end users and investors.

Larger property size, beachfront location, world-class amenities and a tried-and-tested sales strategy have

resulted in near 100 per cent occupancy. Due to strong demand and market dynamics, the company is preparing

to launch smaller town houses as second homes.

“Developers in RAK have always shown a certain amount of cautious restraint from a supply and demand

perspective. At Al Hamra we are meticulous in our market research and ensure when we launch a new product

the demand is there,” added Kurien.

From a retail perspective, Al Hamra is undergoing several enhancements to its malls, including a $100m (Dh367

million) expansion and upgrade to Manar Mall, which will see the gross leasable area double from 300,00 sq ft to

nearly 600,000 sq ft, adding a further 80 retail and food and beverage destinations.

As part of the development, Al Hamra has signed a management agreement with Emaar Hospitality Group to

operate a 250-room Rove Hotel, which will have access to the mall, further underscoring the cohesive effort to

boost visitor numbers to the emirate.

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Within Al Hamra Village, the Al Hamra Marina & Yacht Club remains a major attraction for boating enthusiasts,

while the Al Hamra Golf Club has hosted prestigious events, such as the final part of the European Challenge

Tour.

“We have developed a product that really does have something for everyone. Brands such as the Ritz-Carlton and

Waldorf Astoria are synonymous with luxury. The golf course and marina, and the amenities they offer, are world

class, plus our residential design and build quality are second to none — it’s easy to see why we are fast becoming

a must-visit, must-return destination,” explained Kurien.

Source: Gulf News

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WHAT INFLUENCES YOUR HOME

MORTGAGE RATE? Tuesday, January 08, 2019

A home mortgage is provided on a longer tenure than most other financial instruments, which means the

monthly payments are going to be on your expenses for a long time. It is quite important to make sure this won’t

make you stressful at any point in time till you clear it. The easiest way to make way for an easy mortgage payoff

is to obtain a cheap rate on it at the start itself.

There are several things that have an impact on your mortgage rate.

Loan amount

It’s extremely important to keep the loan capital to a minimum. Any redundant extra mortgage capital is a burden

and will raise the monthly instalments. Banks only finance 70-80 per cent of the property value. The rest should

be borne by the borrower. Some banks may allow applicants to negotiate on interest rates if they are ready to pay

a high down payment and borrow less.

Credit score

This three-digit number is one of the prime factors when your bank approves the loan. Applications with a high

credit score not only get approved easily, but banks can also offer lower rates. Pay your existing loans and credit

card bills on time, which will improve the credit score over time.

Loan-to-value

LTV ratio is calculated by dividing the mortgage amount by the property value. The lower the LTV ratio, the higher

chances of loan approval. This means that the mortgage amount should be as low as possible. With a high LTV

ratio, lenders might increase the interest rate. High LTV ratio borrowers also need to get property insurance to

reduce the lender’s risk.

Tenure

The maximum repayment period on a home mortgage is 25 years. Overall a shorter tenure means lower interest

rate compared to a longer one.

Employment, income

The applicant must have employment for at least one to two years in the region and a minimum monthly salary of

Dh8,000. If the monthly income is higher, a borrower can pick the best mortgage product and also negotiate on

rates.

History of loans

If the borrower has a history of loans that were cleared without any delays, it not only has a favourable impact on

the credit report but also help get a lower interest rate.

Location of property

If your property is situated in a good location, which tends to develop, then the lenders might charge less interest

rate because it makes the borrower less likely to default on payments. And even if he does, the resale value of the

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house will compensate the mortgage provided. If the house is in an underdeveloped area with no signs of

progress, the lender might provide higher rates.

Shiv Gupta is the co-founder and director of mymoneysouq.com

Source: Gulf News

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DUBAI REALTY HOPES WEAK DOLLAR

BREATHES NEW LIFE INTO MARKET Monday, January 07, 2019

The dollar’s recent softening could be a good thing for Dubai’s property market, if this manages to bring back

more buyers from non-dollar-denominated markets.

Because the fact remains that even with property prices sliding in Dubai in the last two years, the dollar’s

overwhelming strength during this period made buying real estate here still pricey for these investors. This meant

investors in India, Russia, China and even those from the UK found the currency difference against the dollar to

be too steep for a decent return from any property purchase here.

“As the dollar strengthened for the typical nationalities who’ve been investing in Dubai real estate, it meant the

normal economics of overseas buyers coming in during times of oversupply and prices slipping hasn’t happened

so far,” said Steve Morgan, CEO of Savills M.E., which as of January 1 completed all the integration processes from

its purchase of Cluttons’ regional interests last June.

“Dubai real estate was still expensive for people not holding dollars — the pound was at a ten-year low against

the dollar. Now, if the dollar manages to extend its current weakness, it could make real estate here more

affordable and overseas buyers will come back in greater numbers.”

Upcoming Dubai Land Departments data will show how much of buying interest was among foreign investors. But

the data only goes by the nationality of the buyer, and does not record whether he is an expatriate based here or

an individual based outside the country when the deal was made.

According to market feedback, foreign buying interest at the premium end of the property market is still steady —

it’s in the sub-Dh3 million space that deals involving these investors have fallen significantly.

Plus, competition for the investor dollar in global real estate remained intense throughout 2018. These days, one

can buy apartments in Manhattan for under $1 million (Dh3.67 million) — the first time this has happened since

2015 and brought on by oversupply. It’s a theme that Dubai’s property market is not unfamiliar with.

According to Morgan, “There’s no reason why an oversupply situation is anything to get embarrassed about. No

one has [a] crystal ball in predicting outcomes. There is an inelasticity about supply in real estate — developers

start on new projects when the market is good. It takes three to five years to build a project and during this period

markets cool down or heat up.

“Right now in Dubai, even foreign buyers will find attractive the lower deposit requirements and longer payment

plans developers are offering. They get in with a small amount of money and buyers are attracted by the future of

those developments. This had a knock-on effect on [overseas investor] demand for finished properties.”

Interestingly, the reverse is true among domestic buyers, where demand shifted decisively in favour of ready

properties during 2018.

Post-Cluttons integration

After the Cluttons integration, Savills will be on the lookout for any opportunity to tap into foreign fund flows

headed here. But there is much that can be done even outside of these transactions.

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Residential leasing and asset management will remain a priority — currently, this makes up 30 per cent of its

Dubai’s revenues and 70 per cent in Sharjah.

“Leasing still holds a lot of value and is key to winning property and asset management contracts,” said Morgan.

The deal was effected without any job losses, according to Morgan. In a marketplace as tight as the one in Dubai

right now, and especially in the real estate space, that did take some doing.

“We didn’t let anybody go and, in fact, grew it further by absorbing most of the Cluttons’ franchise teams in Oman

and Bahrain,” he added. “The projection for the next 12 months is to increase the workforce by 24 per cert. All the

former Cluttons’ associations in the region have come to an end after serving some notice period.”

Global real estate had a solid workout in 2018

Sure New York and Miami property markets failed to deliver because of oversupply, but the rest of the US was

doing quite well for itself in attracting investors. And on the other side of the Atlantic, London had “more

transactions than ever before,” according to Steve Morgan, CEO of Savills M.E.

Brexit’s sway on UK’s real estate has not placed a vice-like grip on buying.

“Residential prices in London have declined 10-15 per cent in the last 18 months... add to that the 12-18 per cent

currency benefits for those holding dollars, and you see reasons behind the deal flows.”

Globally, Savills reckons that real estate deals were up 8.5 per cent over the year before.

Source: Gulf News

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TIGHTENING REGULATIONS ALONE WON’T

AID UAE REAL ESTATE Thursday, January 10, 2019

You can’t have it both ways. You cannot have a regulatory framework that protects asset holders whenever prices

fall and, at the same time, perpetuate an economic system that makes things more affordable for the small

investor through regulatory moves.

The two are simply in conflict ... and any attempt to prove otherwise is simply disingenuous. This does not imply

that I am against government intervention. In point of fact, intervention has been a frequent characteristic in the

world economy, but we need to define the objectives clearly.

A regulatory framework has multiple objectives to overcome, but in an economic analysis, has the effect of

reducing costs for the end-user. This is often offset by the costs imposed by government regulation. We then

operate in a world of trade-offs where the objective is that society benefits on a net basis.

Some market observers argue that a natural equilibrium is something that all economies will reach. But they also

artfully switch the debate to rail against the practices of industry observers and their inability to capture

accurately the dynamics of the real estate market. They call for regulatory oversight for these so called industry

observers.

One of their suggestions include a “holistic regulatory oversight committee” that reaches across disciplines. I am

not an expert in real estate matters nor in forming regulatory committees, but this line of thinking is not new. It

fundamentally boils down to the pace of regulatory reforms, the constituents that they are aimed at, and the

balance sought to be achieved between economic growth and social stability.

This is an all too human endeavour ... sometimes we succeed and sometimes we need more work against the

backdrop of a world that is changing rapidly. In establishing Rera (Real Estate Regulatory Agency), for example,

Dubai has put in place a model blueprint for regulating the free wheeling practices of the real estate industry.

India has already adopted a similar model, and others such as Egypt, China and Pakistan are examining their own

legislation with a view to introducing a similar framework.

In other areas like telecom deregulation, more work needs to be done, as articulated by other legal and economic

experts in the field. Through a series of feedback loops, both from within the industry as well as from external

observers, we know we have succeeded most often through the “price mechanism”.

For example, there were a number of concerns expressed about the volatility and the pace of rental increases in

the real estate market in the first cycle. This concern has now been obviated through rental regulatory practices

that have been put into place, to the point where some argue that this is no longer needed.

I have never argued that more cannot be done. As new practices are introduced — through innovation, which is

the hallmark of private enterprise — the role of the regulator is to forever be the gatekeeper, protecting against

any attempt at “price gouging” or other anti-competitive behaviours. In codifying this doctrine, the role becomes

one where the function of price signals becomes critical.

This implies that price volatility becomes the natural consequence of an asset-driven economy. Regulating against

the movement of asset prices simply means that the interest of asset owners are given precedence over that of

the small investor, which is simply against the raison d’etre of regulation.

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No amount of regulation can do away with economic boom-bust cycles. Instead the focus should remain one

where the competitive framework of the economy is increasing. It can only do so if the starting point of regulation

is a reduction of costs for the operation of enterprise.

Affordability then becomes the key lens with which to view the success — or lack thereof — of regulation.

Nasser Malalla Ghanem is Senior Partner at NM Associates, which has a joint venture with GCP.

Source: Gulf News

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HILTON AND AW ROSTAMANI GROUP TO

DEVELOP 458-ROOM HOTEL IN BUR DUBAI Tuesday, January 08, 2019

Hilton has signed a management agreement with AW Rostamani Group to develop a DoubleTree by Hilton hotel

in Bur Dubai, the pair announced on Tuesday.

DoubleTree by Hilton Dubai Al Mankhool will join 11 hotels currently operating or in the pipeline for the brand in

the UAE, and represents the first time AW Rostamani Group has entered the hospitality market.

The hotel is expected to open in 2020.

“Since we introduced DoubleTree by Hilton to the UAE four years ago, the brand has been a real success story and

is now one of the fastest growing in the market,” said Carlos Khneisser, vice president of development, Middle

East and North Africa, Hilton.

“It offers the versatility to create a hospitality experience that fits an owner’s personal vision, supported by the

established standards and global reach of an established brand. We look forward to working with AW Rostamani

Group to bring about a new and unique offering for travellers looking to experience staying in the heart of Dubai’s

traditional, cultural district.”

Construction is already underway on the mixed-use development, which will house the property. Located within

the portion of Dubai commonly referred to as the city’s ‘Old Town’, the hotel will contain 327 guestrooms with 131

serviced apartments.

Source: Gulf News

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YOUR HOUSE RENT IN DUBAI IS LIKELY TO

FALL THIS YEAR Thursday, January 10, 2019

Residential rents in Dubai are expected to see further declines over the first half of 2019, before stabilising in the

second half of the year or early 2020. This comes on the back of a huge level of supply expected to hit the market

this year.

Analysts estimate that more than 63,000 homes will be delivered in Dubai this year. These are projects that were

launched as Dubai won the bid to host Expo 2020.

"While many of these projects will not be delivered on schedule, the level of actual completions is still likely to

exceed demand. Another negative influence on the rental market are the attractive payment plans being offered

by many developers that are seeking to attract renters to purchase property in Dubai. This will result in a relative

shift in the market with more demand to own and less to rent properties," says Craig Plumb, head of research, JLL

Mena.

According to Prathyusha Gurrapu, head of research and advisory at Core: "In the rental market, the older central

built stock continues to be under pressure to retain its novelty with occupier preferences shifting to outer areas

where newer and competitively priced options are increasingly becoming available."

JLL estimates that around 22,000 homes were completed in Dubai in 2018, the highest level for the last five years.

There was a significant surge of handovers witnessed during Q4 2018. The vast majority (around 75 per cent)

were apartments, with the remainder comprising townhouses and villas.

The consultancy ValuStrat estimates that upcoming supply for 2019 currently stands at 78,566 residential units.

"However, this number is subject to significant downward adjustment. Communities with significant upcoming

supply in 2019 include Dubailand [Akoya Oxygen, Damac Hills, Town Square, Dubai Legends, Arjan], Mohammed

Bin Rashid City [Meydan One, Dubai Hills Estate, District 11], Jumeirah Village Circle and Business Bay," informs

Haider Tuaima, head of real estate research at ValuStrat.

These are the communities that are likely to see significant rent reductions.

"The majority of completions for 2019 will be in the apartment sector, with major deliveries expected in Meydan

[including Azizi's Riviera project] and Al Habtoor City," adds Plumb.

Apartment districts of Discovery Gardens and Dubai Sports City witnessed over 25 per cent reduction in rents

from their peak Q4 2014 values, according to Core data. The villa communities of Jumeirah Park and Jumeirah

Village Circle and Triangle also witnessed over 30 per cent decline in rents.

"Citywide asking rents declined 8.6 per cent since last year. Apartments in International City, Discovery Gardens

and Dubai Sports City saw steepest annual rental declines of 14.6 per cent, 14 per cent and 13.1 per cent,

respectively. Asking rents in villa communities, Jumeirah Islands and Palm Jumeirah fell 12 per cent and Victory

Heights declined 10.5 per cent annually," ValuStrat's Tuaima adds.

As a result, more landlords are responding to the tenant-friendly market by reducing rents or offering other

incentives such as rent-free periods, accepting multiple cheque payments or the inclusion of maintenance within

the rent.

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Generally, smaller apartments and larger villas saw the biggest rental declines last year. Due to the increasing

stock of smaller format and studio apartments, these units appear to be most affected, with a year-on-year rent

drop of 16 per cent for studios and 12 per cent for one-bedroom units.

As residential rents have softened in the Northern Emirates as well, there has been a mixed response from

tenants in terms of moving back to Dubai. Tenants are also moving from northern parts of Dubai towards the

centre, the east and further south of the city.

"Some families have moved to Dubai to be closer to their workplace and avoid longer commute time while others

have tried to optimise housing expenses by taking advantage of the softened rents and not relocated," reckons

Prathyusha.

"Some families are moving into Dubai from Sharjah and the Northern Emirates as rentals decline in Dubai. The

extent of this trend is limited by the corresponding fall in rents in these more remote locations, which means that

tenants can reduce their living costs by remaining in place," Plumb adds.

Sales market

Apartment sales prices fell by 5 per cent in Q4 compared to Q3 2018 while average villa prices softened by 3 per

cent. Furthermore, year-on-year performance showed that apartment prices declined by 16 per cent and villas by

13 per cent, according to Chestertons.

Knight Frank estimates that residential prices and rents in the UAE are likely to continue to soften in 2019.

"However, we may see additional demand which helps underpin the market as a result of the recent approval of a

range of legislations to ease visa regulations, given that many of the changes are linked to property ownership,"

says Taimur Khan, research manager, Knight Frank.

Source: Khaleej Times

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READY-TO-MOVE-IN HOMES GAIN IN

POPULARITY IN DUBAI Wednesday, January 09, 2019

Ready-to-move-in units have seen a surge in popularity in Dubai owing to attractive incentives and long-term

payment plans from developers looking to clear their inventory.

In the fourth quarter of 2018, completed properties in Dubai saw a 22 per cent increase in transaction volumes

over Q3 and an overall 7 per cent uplift across 2018, according to real estate services firm Chestertons.

"The real estate market recovery in Dubai continues to be hampered by the increasing excess supply being

released to the market. However, our research has highlighted 41 per cent of all residential transactions now

relate to completed units, up 6 per cent from 2017, indicating a shift in buyers' interests, with the trend set to gain

further momentum in 2019 as developers offer attractive incentives and long-term payment plans," said Ivana

Gazivoda Vucinic, head of consulting, Chestertons Mena.

Apartment sales prices fell by 5 per cent from the previous quarter while average villa prices softened by 3 per

cent. Furthermore, year-on-year performance showed that apartment prices declined by 16 per cent and villas by

13 per cent, according to Chestertons.

According to Knight Frank, residential prices and rents in the UAE are likely to continue to soften in 2019.

"However, we may see additional demand which helps underpin the market as a result of the recent approval of a

range of legislations to ease visa regulations, given that many of the changes are linked to property ownership,"

said Taimur Khan, research manager, Knight Frank.

"While there are clear challenges facing the market, the recent approval of a range of legislations to ease visa and

foreign business ownership by the UAE Cabinet are likely to drive additional demand in the UAE's property

market. Looking ahead, we expect that the prime segments of the market are likely to continue to outperform the

mainstream market overall," Khan added.

In the apartment segment, prices in Dubai Sports City, International City and Jumeirah Village Circle (JVC) all fell by

9 per cent compared to the previous quarter. Downtown Dubai and The Greens fell by 8 per cent and 7 per cent

respectively. In contrast, Dubai Marina remained one of the most resilient locations, witnessing a decline of just 1

per cent. Annually, it was Discovery Gardens which saw the steepest decline, with prices dropping by 25 per cent

year on year. The most resilient apartment location was Dubailand with just a 5 per cent adjustment from the

previous year.

In the villa sales market, Palm Jumeirah observed a 7 per cent decline in Q4. The Meadows and Springs remained

unchanged from the previous quarter while Arabian Ranches fell by just 1 per cent, indicating the prices in these

particular communities may have bottomed out, the Chestertons report added.

In the rental market, apartments saw a further 4 per cent decrease in Q4 and a 3 per cent drop for villas from Q3.

This was a continuation of a trend which saw an overall 12 per cent annual decline in apartment rents and 8 per

cent for villas.

In the rental market, apartments in Dubai Marina, Dubai Silicon Oasis, Dubai Sports City, Dubailand and

International City witnessed a 5 per cent decline in Q4, with a one-bedroom in Dubai Marina now available for

Dh82,500. Downtown Dubai, JLT, JVC and Dubai Motor City all declined by 4 per cent from the previous quarter.

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Due to the increasing stock of smaller format and studio apartments, these units appear to be most affected by

market adjustments with a year-on-year recorded drop of 16 per cent for studios and 12 per cent for one-

bedroom units.

In the villa rental market, the highest Q-on-Q declines were witnessed in three-bedroom units with average rental

declines of 4 per cent.

"From a rental perspective, Dubai continues to be a tenant-friendly market, with many making significant savings

by renegotiating terms and price with current landlords or moving to a cheaper location within their current

district or relocating to a new community," added Vucinic.

The addition of new stock and limited new demand continues to place pressure on landlords with many of them

competing on several fronts to retain or attract new tenants with multiple cheques, rent-free periods and in some

cases agency fees being covered.

According to Vucinic, this could result in landlords taking advantage of the holiday let market, which has been

legal in Dubai since 2016. "With demand for annual contracts weakening and rents continuing to fall, short-term

holiday rental could prove very lucrative, especially in popular locations, particularly as we edge ever closer to

Expo 2020," she said.

Source: Khaleej Times

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NAKHEEL HAS A BUSY YEAR FOR PROJECT

DELIVERIES Tuesday, January 08, 2019

Master developer Nakheel has a busy year ahead in terms of handovers. This encompasses residences, hotels

and shopping malls, some iconic addressed included.

A top official said the Deira Islands Night Souk, Premier Inn Dragon City, Avani Ibn Battuta Mall, the Nakheel Mall

in Palm Jumeirah, the St Regis Dubai, The Palm, and Nad Al Sheba Residences are some of the prominent

deliveries for the developer this year.

The five-star, 289-room St Regis will occupy the first 18 floors of the 52-storey Palm Tower located on the trunk of

the Palm Jumeirah. This is part of Nakheel's Dh3 billion hospitality portfolio, under which it has approximately

6,500 hotel rooms in its portfolio, either delivered or under development.

"We are building hotels that also fit in the luxury sector. But, we are mostly focusing on three to four-star hotels,"

Aqil Kazim, chief commercial officer, Nakheel, said during a site tour in Dubai on Tuesday.

The developer has also tied up with Spain's RIU and Thai group Centara for hotels on Deira Islands. It has roped in

Raffles to operate the hotel component in its upcoming project, the 260-metre-tall Palm360, which will be one of

the tallest towers on the Palm Jumeirah upon completion. Piling work is underway and design is in advanced

stages on this flagship project, the executive informed.

Meanwhile, construction is complete on 432 luxury residences spread across 30 floors in the Palm Tower.

However, the homes will only be delivered in 2020.

"The residences come fully furnished and with a seven-year payment plan. The price of a studio starts from Dh1.7

million and a 2-bedroom from Dh10 million. All 3-bedroom apartments have been sold out. All apartments will

offer one of the four views: Atlantis, Marina skyline, Burj Al Arab or the Palm Gateway towers," said Kazim.

According to Lewis Allsopp, CEO of Allsopp & Allsopp: "The Palm Tower is a very luxurious project and the pricing

structure reflects this. Buyers looking to invest in affluence in a hugely iconic area should consider this

development."

However, Allsopp added that at the moment, most buyers interested in investing in property on the Palm

Jumeirah are looking for readily available units such as Shoreline and Marina Residence apartments, which offer

more value for money and instant rental returns or a home to live in for end-user buyers.

Level 52 of the Palm Tower will offer a public viewing deck at 240 metres. Nakheel will operate this space and a

fee will be levied for tickets. The access point for this viewing deck will be through Nakheel Mall.

"The public viewing deck on the 52nd floor will be a pit stop for visitors and tourists en route to the Atlantis, The

Palm," said Kazim.

The Palm Tower also includes an infinity swimming pool perched 210 metres above ground - one of the highest in

the world, similar to Marina Bay Sands in Singapore. The pool is on the 50th floor of the Palm Tower. Above the

pool will be a podium housing a club and a speciality restaurant. This will be on an exclusive access basis.

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The Dh1.2 billion Palm Tower will be connected with the under-construction Nakheel Mall, which is 70 per cent

leased out, and a Monorail station. The mall has 1.1 million sqft of leasable area and features 350 retail and F&B

outlets.

The mall will have three access points for cars, three for pedestrians and a separate Monorail station. Al Ittihad

Park will also offer access to the Nakheel Mall while there will be two tunnels connecting it to the surrounding

Marina Residences. The mall will not have a utility roof, instead it features a glass dome with F&B and retail.

"The St Regis hotel, club and Nakheel Mall will be handed over in 2019. The hotel fit-out work is ongoing,"

explained Kazim.

"The Palm Tower is a lifestyle product, which is what Dubai is looking for. There is water frontage from all sides:

this is the project's USP," concluded Kazim.

Source: Khaleej Times

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DIFC 2.0: A GLOBAL INVESTMENT HUB IN

THE MAKING Monday, January 07, 2019

Dubai International Finance Centre (DIFC), the region's largest financial free zone, will undergo expansion in order

to cement the emirate's position as a business capital and hub for international investment.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler

of Dubai, said developing the financial sector is a priority that supports the economic future of Dubai and further

enhances investor confidence, given the vital contribution it makes to Dubai's economy mainly through DIFC.

"The financial sector remains one of the cornerstones of our economy. We are keen that the development of

infrastructure is matched by the development of legislation by continuously reviewing it to ensure it is among the

best in the world and that it can facilitate the best environment for supporting greater excellence and

achievement," Sheikh Mohammed said.

The Dubai Ruler approved the launch of the new chapter called DIFC 2.0 for the development of the free zone.

The announcement came following the Fifty- Year Charter recently announced by Sheikh Mohammed that aims to

ensure Dubai's sustained prosperity and accelerates the development journey of the emirate, the UAE and the

region.

During a visit to DIFC, Sheikh Mohammed was accompanied by Sheikh Hamdan bin Mohammed bin Rashid Al

Maktoum, Crown Prince of Dubai and Chairman of The Executive Council; Sheikh Maktoum bin Mohammed bin

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Rashid Al Maktoum, Deputy Ruler of Dubai and President of DIFC; Sheikh Ahmed bin Saeed Al Maktoum,

Chairman of Dubai Civil Aviation Authority and Chairman of Emirates Group; Sheikh Ahmed bin Mohammed bin

Rashid Al Maktoum, Chairman of Mohammed Bin Rashid Al Maktoum Knowledge Foundation; and Sheikh

Mansour bin Mohammed bin Rashid Al Maktoum.

"The next phase requires the introduction of the latest technologies that can support the growth of various

business sectors. We are not only trying to meet the requirements of the present time but also be a major

contributor to shaping the future of the world's economy and positively influence greater well-being for the world.

We are confident that Emiratis will be successful in achieving this strategic objective," Sheikh Mohammed said.

The Centre's phased growth plan will triple the scale of the leading financial hub in the Middle East, Africa and

South Asia (MEASA) region. The new expansion will add 13 million square feet of space to the centre's ecosystem,

providing an international focal point for FinTech and innovation.

The development of DIFC 2.0 will commence immediately and will be completed in several stages. Upon

completion, the new district will comprise 6.4 million square feet of office space, 2.6 million square feet of creative

space, 1.5 million square feet of residences, 1.3 million square feet of retail space and 700,000 square feet

devoted to leisure and entertainment.

This will be complemented by a financial campus covering approximately 400,000 square feet, an additional

250,000 square feet of hospitality offerings, and 3.5 million square feet of car parking space.

DIFC 2.0 is an extension of the existing jurisdiction, with direct connections to Dubai's public transport networks.

Embracing a pedestrian lifestyle, the next phase is set apart from conventional city living with underground

service paths allowing for the free movement of bikes, pedestrians, cars and smart transportation.

"The next phase of our development will translate into further growth for the regional financial services

landscape. We are excited to continue working alongside our vibrant community, which includes some of the

most prominent global financial institutions, to evolve our offering and to support the development of the

financial services industry across the MEASA region," said Essa Kazim, governor of DIFC.

DIFC now houses more than 22,000 professionals working across over 2,000 companies in the district.

Source: Khaleej Times

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WHY NEW GENERATION HOME BUYERS

PREFER CONTEMPORARY DESIGN Tuesday, January 08, 2019

As someone who works in the field of luxury real estate, I have had the privilege and the pleasure of visiting some

truly spectacular homes across the world. It never ceases to amaze me just how much care homeowners put into

interior design and into crafting a space that is as good to look at as it is comfortable to live in. Of course, there

are the occasional misfires where I find myself wondering just what was going through their heads, but for the

most part, the homes I come across are simply breathtaking. This is especially true of a city like Dubai, where

design and aesthetics are essential aspects of any property.

Dubai's design aesthetic is especially unique, in large part due to the multicultural population as well as the wide

age range of home buyers. On one end of the spectrum, you have the long-time expats who moved to the city

decades ago and have raised their families here. On the other, there are the new arrivals, the young couples and

budding families who are starting to establish new lives for themselves. Each demographic brings with it a

different perspective and way of life, which is ultimately showcased through the design of their homes, whether

they are lavish penthouses in the heart of the city or stately villas in suburban neighbourhoods.

While the Mediterranean and coastal European aesthetic of areas such as Arabian Ranches and Jumeirah Golf

Estates are much preferred by older residents and families with a higher median age, the newer generation of

homeowners is more interested in contemporary design. Newly built neighbourhoods such as District One,

Hillside in Jumeirah Golf Estates, Sidra in Dubai Hills and Tilal Al Ghaf are characterised by sleek lines, stark

silhouettes and neutral palettes. After all, the home buyers of today are part of the iPhone generation, raised on

the concept of 'less is more' when it comes to aesthetics.

The Apple store is the quintessential example of that. Visiting an Apple store is a unique experience because of its

unconventional design, stripping every element we would expect of a retail outlet to its barest form. This creates a

space that is clutter-free and a smoother flow between the various areas of the store, thus enhancing the

experience. The same principle can be seen in contemporary villas, using a style that is austere without being too

minimalistic. This again serves to remove clutter, making each room feel much larger and more relaxing.

Another clever design element in Apple's stores is the use of floor-to-ceiling glass. The lack of a door or storefront

not only gives the store a distinct look, but also creates an open environment that invites passersby to walk inside.

Extensive use of glass is perhaps the most common trend that I have come across in the newer homes that I have

visited. Floor-to-ceiling windows and glass doors are increasingly common features and are standard components

of newly built villas, resulting in a sense of light and space that can make the cosiest home feel like a mansion.

Indeed, one may notice that on a square foot basis, the new villas are perhaps a bit smaller than long-established

homes such as the ones in Emirates Hills or Arabian Ranches yet the space feels larger because of the seamless

border that connects the interior of the home to the outdoors.

There is some concern that all that glass will lead to overheated villas, especially during Dubai's balmy summers.

However, this is not a frivolous choice made for simply for the sake of aesthetic appeal. Advances in fenestration

technology and particularly the use of argon gas between window panes have helped to increase energy

efficiency.

Ultimately, the market speaks for itself. Contemporary neighbourhoods such as District One, Sidra at Dubai Hills,

Hillside at Jumeriah Golf Estates and Tilal Al Ghaf have seen robust sales, with many of the homes selling within

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weeks of launch. This shows the strength of the design, among other factors, and suggests the direction in which

Dubai is headed.

This contemporary modern aesthetic is a symbol of Dubai's design evolution and forms a part of what will be this

city's future.

The writer is founder and CEO of LuxuryProperty.com. Views expressed are his own and do not reflect the newspaper's

policy.

Source: Khaleej Times

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APP FOR REAL ESTATE VALUATORS

LAUNCHED IN DUBAI Monday, January 07, 2019

The Real Estate Regulatory Authority (Rera) at the Dubai Land Department (DLD) has announced the launch of a

smart application for real estate valuators called 'Taqyimee'.

The launch was attended by Sultan Butti bin Mejren, director-general of DLD; Marwan bin Ghalita, CEO of Rera.

Bin Ghalita affirmed that the Executive Council Resolution No. 37 of 2015 regulates all aspects of the real estate

appraisal processes in the emirate. The Rera is responsible for organising and registering real estate valuators.

He stressed that the Rera's strategic projects emphasise the importance of launching smart applications that

contribute to meeting customers' expectations and providing them with data to support their investment

decisions.

Ali Abdalla Al Ali, director of the Real Estate Licensing Department, said the application serves the objectives

adopted by Rera and comes within the framework of the smart transformation of services provided by the

Authority about real estate valuation services.

Source: Khaleej Times

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DUBAI HOUSE PRICES TO DROP 5 TO 10%

MORE THIS YEAR Tuesday, January 08, 2019

There is potential for residential real estate prices in Dubai to decline by another 5 to 10 per cent this year before

the market hits the bottom, said Steve Morgan, CEO of Savills Middle East.

This is on top of the 6 to 10 per cent decline Dubai residential property prices witnessed in 2018, the executive

added.

"Real estate prices have slipped and with the strengthening of the US dollar, investors from traditional source

markets such as Russia, India, UK and Europe are facing affordability issues. It's not just real estate, but other

sectors like tourism are also facing affordability issues. Real estate across the world, even in advanced markets,

goes through cycles," Morgan told Khaleej Times on Monday.

Supply of additional inventory is also weighing on the Dubai housing market. 2019 will see the handover of

projects that were announced when Dubai won the Expo 2020 bid. This also coincides with the softening in oil

prices. But, demand is expected to pick up once the Expo kicks off in 2020.

However, Morgan insisted that the products being delivered were of high quality, citing units in La Mer, City Walk,

Dubai Creek Harbour, etc.

"Dubai is ahead of the curve compared to other GCC real estate markets. There is pressure across most of the

GCC markets we operate in," the Savills executive informed.

He requested the government to do more to bring down the cost of transactions. "There are steps in the right

direction such as the long-term visas, property visa for retirees and spurt of payment plans for off-plan

properties. The real estate sector will also benefit if Dubai manages to attract more visitors who transit through its

airports. The increase in infrastructure spend is likely to trickle down to the economy," he reckoned.

Meanwhile, Morgan affirmed that Dubai is still an investor-friendly market. "There are good yields to be had if you

buy at the right price in the right project. But, second generation residents who have been living here for many

years are keen to own their own property."

Referring to the marginal impact of VAT on the commercial property market, Morgan said: "The cost of operating

a business is still high in the UAE. The cost to apply for or renew a trade licence, visa, etc., is rising every year. VAT

is an additional cost for these businesses."

He also cited the flight to quality in the office space and big occupiers spreading out across the city. He referred to

HSBC moving its headquarters to Downtown Dubai as an example of consolidation.

Savills announced the rebrand of its Middle East business following the acquisition of Cluttons Middle East on

May 31, 2018. The firm, which was previously represented by associates in the Middle East, has completed a six-

month integration process with Cluttons Middle East, which will now be known as Savills.

In the Middle East, it will operate across five countries, including Bahrain, Egypt, Oman, Saudi Arabia and the UAE.

Savills is looking to further strengthen its capital markets business by working with clients in the Middle East to

enable them to access investment destinations across the world. "There are several sovereign wealth funds and

private family businesses in the UAE looking to invest across asset classes and geographies," Morgan added.

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Source: Khaleej Times

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GCC ECONOMIES TO FOCUS MORE ON

DIVERSIFICATION Friday, January 11, 2019

The global economy will see slower growth in 2019, but the overall outlook remains positive for the GCC, with

many countries such as the UAE focused on their diversification strategies, experts said.

Speaking at a media session, Michala Marcussen, group chief economist at Societe Generale, said the large

amount of debt worldwide is a fundamental concern for many economists. The outlook for 2019 is one of slower

growth in the global economy, but overall the impetus remains positive.

"High levels of debt in the global economy become particularly important if we are faced with a more abrupt

slowdown globally. Interest rates are already at a very low level, so the ability to alleviate balance sheets by

dropping them even lower is reduced. But, there are several positives as well: we can see strong fiscal impulse

from the US, as well as low oil prices encouraging consumer spending," she said.

She also noted that the share of zombie companies - firms that are at least 10 years old but unable to cover their

debt servicing costs with profits - has continued to increase.

"There are more zombie companies in the system, which makes it a vulnerability and hints at lower productivity."

On the situation in the US, she noted that there was continued uncertainty with President Donald Trump's threats

to keep the government shut for the next few months. "This could become a trigger for something much more

negative for the US economy."

Edgardo Torija Zane, senior economist for the Middle East, Turkey at Central Asia at Societe Generale, noted that

2018 proved to be a good year for economies in the region, thanks to an increase in average oil prices. "Looking

ahead into 2019, there is still a lot of uncertainty right now regarding oil prices," he said.

"Our assumption is that oil prices will average at $65 per barrel. It's a good price for many countries, but there is

still going to be a need for reforms. When we look at the progress that has already been made in implementing

reforms, what we have seen is reassuring. The challenge will be to ensure that the GCC economies continue to

diversify their economic structures and ensure that growth will be inclusive. Another challenge will be to tackle

the issue of unemployment among the younger population in many of the countries."

Source: Khaleej Times

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UAE TO BE FASTEST GROWING GCC

ECONOMY IN 2019: IIF Wednesday, January 09, 2019

The UAE will be the fastest growing economy in the GCC region this year along with Oman, driven by non-oil

sector, Dh50 billion Abu Dhabi stimulus package and projects linked to Expo 2020 Dubai, according to a new

report released on Wednesday.

The Institute of International Finance (IIF) analysts projected the UAE's real GDP to grow 3.1 per cent in 2019

compared to 2.9 per cent estimated for 2018. But growth is projected to slow down to 2.7 per cent in 2020.

Nominal GDP is estimated to increase from $434 billion (Dh1.592 trillion) in 2018 to $444 billion (Dh1.629 trillion)

in 2019 and $458 billion (Dh1.681 trillion) in 2020.

Taimur Khan, Research Manager, Knight Frank, said in an another UAE research that outlook for the UAE's GDP

growth in 2018 and 2019 remains positive on the back of higher oil prices, a range of stimulus packages and

easing of business regulations in both Abu Dhabi and Dubai, which are likely to support activity in both the public

and private sectors.

International Monetary Fund had predicted 3.7 per cent growth for the UAE for 2019 in its October forecast. While

World Bank on Tuesday predicted 2 per cent in 2018 which is expected to accelerate to 3.0 per cent in 2019 and

3.2 per cent in 2020 and 2021.

According to IIF forecast, Oman's real GDP growth is also projected at par with the UAE at 3.1 per cent for this

year and 3.4 per cent in 2020. While Saudi Arabia's real GDP is predicted to grow 2 per cent in 2019, Kuwait at 0.4

per cent, Qatar at 2 per cent and Bahrain at 2.4 per cent.

"Consumer inflation will ease in 2019 in Saudi Arabia and the UAE after the VAT related spike in 2018. Downward

pressure from the low rental prices will persist," IIF analysts said.

In 2018, higher oil prices enabled temporary improvements in the external and fiscal positions of the GCC

countries.

"We see the aggregate current account surplus declining from $153 billion in 2018 to $86 billion in 2019 due to

lower oil prices and export volumes. We also expect the aggregated fiscal deficit to widen again from 1.4 per cent

of GDP in 2018 to around 4.0 per cent in 2019 and 2020, and the public debt to rise to 45 per cent of GDP by

2020," said Garbis Iradian, chief economist, Mena, IIF.

Source: Khaleej Times

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UAE TO GROW 3% IN 2019: WB Wednesday, January 09, 2019

The UAE's gross domestic product (GDP) will maintain its strong growth in 2019 and the next two years, helped by

higher investment and regulatory reforms, despite headwinds in the global economic growth, said a new report

released on Tuesday.

The World Bank said in its latest report that the UAE is expected to grow two per cent in 2018 but the growth is

expected to accelerate to three per cent in 2019 and 3.2 per cent in the following two years of 2020 and 2021.

The International Monetary Fund (IMF) in October hiked the UAE's growth forecast for 2018 and 2019 on the back

of higher oil prices, continued reforms to promote the private sector and increased government spending.

"With oil production and government spending set to rise, overall growth is projected to strengthen to 2.9 per

cent this year and 3.7 per cent next year," IMF had said.

According to World Bank's January 2019 Global Economic Prospects, growth among oil exporters is expected to

pick up slightly this year, as GCC countries as a group accelerate to a 2.6 per cent rate from 2 per cent in 2018.

"Higher investment and regulatory reforms are anticipated to support stronger growth in the GCC. Iran is forecast

to contract by 3.6 per cent in 2019 as sanctions bite," World Bank said.

In rest of the GCC, Kuwait is projected to clock fastest GDP growth of 3.6 per cent this year followed by Oman (3.4

per cent), Qatar (2.7 per cent), Bahrain (2.6 per cent) and Saudi Arabia (2.1 per cent).

For the Mena region, the World Bank estimated 1.7 per cent growth for 2018 and 1.9 per cent in 2019 as growth

among oil exporters is estimated to have strengthened last year.

"Among the countries of the GCC, increased oil production and prices have eased fiscal consolidation pressures,

enabling higher public spending and supporting higher current account balances. Among non-GCC oil exporters,

anemic growth in Iran associated with US sanctions has been a drag on regional growth," it said.

Global economic growth is projected to soften from a downwardly revised 3 per cent in 2018 to 2.9 per cent in

2019 amid rising downside risks to the outlook, the World Bank said on Tuesday.

"International trade and manufacturing activity have softened, trade tensions remain elevated, and some large

emerging markets have experienced substantial financial market pressures," the January 2019 Global Economic

Prospects said.

Growth among advanced economies is forecast to drop to two per cent this year.

"At the beginning of 2018 the global economy was firing on all cylinders, but it lost speed during the year and the

ride could get even bumpier in the year ahead", said World Bank CEO Kristalina Georgieva.

"As economic and financial headwinds intensify for emerging and developing countries, the world's progress in

reducing extreme poverty could be jeopardised. To keep the momentum, countries need to invest in people,

foster inclusive growth, and build resilient societies," Georgieva said.

Source: Khaleej Times

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KIZAD LAUNCHES POLYMERS PARK Monday, January 07, 2019

Kizad has announced the launch of Kizad Polymers Park, which will be capable of producing 300-400 kilo tonnes

of plastic products a year, and contribute around $2.5 billion to GDP by 2025.

The potential export market for the park is estimated at $500 million annually, and will ensure Abu Dhabi's

position as a hub for developing the latest innovations in sustainability and technology in the industry, including

new and advanced and polymer technologies, such as composites and 3D printing.

Speaking to the media at ArabPlast 2019, Samir Chaturvedi, CEO of Kizad, said: "Polymers is one of the fastest

growing segments in the industry right now. We want to bring everything together to make a value proposition for

the industry, and we are trying to create an ecosystem which is very competitive. We have the best quality

infrastructure that is available on land as well as one of the biggest and most important ports in the region. In

addition to this, there are several policies that are in place to help businesses operate."

The strategic collaboration framework between Abu Dhabi National Oil Company (Adnoc) and Kizad Polymers

Park aims to accelerate investment and innovation in the region's plastics industry. Kizad Polymers Park will cater

to a variety of different polymers segments, including industrial use, such as packaging, construction, and semi-

finished products; end-use customer, such as household goods, agriculture and hygiene products; material

science, including compounded and composite materials, and 3D Printing.

Crucial to supporting the circular economy are polymer recycling companies. The park will host a vibrant

polymers ecosystem, including diversified polymers space and raw materials, production systems and technical

support, polymers distribution and trading, and logistics.

"Abu Dhabi is the ideal location for polymers converters looking to reach both regional and international markets.

Tenants at Kizad Polymers Park will benefit from access to raw materials from regional producers and

connectivity to global polymers product demand through Kizad's major transport links, which include Abu Dhabi

Ports' flagship deep-water port, Khalifa Port and international airports," Chaturvedi added.

Abdulaziz Alhajri, director, Adnoc Downstream Directorate, said: "Adnoc is proud to collaborate with Abu Dhabi

Ports and Kizad to further strengthen and develop the UAE's conversion industry. Together, we will work to

ensure alignment with the Ruwais Derivative & Conversion Parks and other industrial parks catering to different

parts of the polymers value chain, offering investors a wide choice of options, while also building on synergies."

Source: Khaleej Times

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PARKS, GREEN SPACES WORTH DH100

MILLION BUILT IN SHARJAH Tuesday, January 08, 2019

Determined to keep its environment green and community-friendly, the emirate of Sharjah has built Dh100

million worth of public parks throughout 2018, the Sharjah Public Works (SPW) has said.

A total of 30 residential parks and walkways were constructed in different parts of Sharjah, under the directives of

His Highness Dr Sheikh Sultan bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Sharjah.

The Ruler also ordered the construction of three more parks and an entertainment centre in Muwailih for 2019.

Courts for sports activities, playgrounds, washrooms and recreational areas for families will be set up in these

new venues.

Speaking to Khaleej Times, Ali bin Shaheen Al Suwaidi, chairman of the SPW, said these projects were part of a

development plan that would bolster the emirate's reputation not just as a child-friendly city but one that caters

to the needs of everyone.

He said that these projects aim to encourage residents to live an active lifestyle by making the most of the parks'

running and cycling tracks and other sports facilities.

Current projects

Al Suwaidi said the SPW is currently working on three parks in Al Nouf 2, 3 and 4 at a cost of Dh15.3 million - and

these are not going to be plain-looking parks.

Part of the budget is earmarked for murals, decorative walls and well-designed corridors, as well as a football

field, a playground and a store. The fund will also cover the construction of paved corridors, service buildings and

irrigation lines.

The massive Al Siyouh Ladies' Park, spanning 140,000 square metres in Area 4, is also in the works, and the SPW is

wrapping up the first phase of the project.

Once completed, this park would significantly expand the green spaces in the area. To protect the privacy of

women who will be visiting the park, fences were installed at a height of 2.10m and length of 1,550m. A 1,420m

running track with a width of three meters also surrounds the park.

Al Siyouh had two other parks, including one that spans 151,000 sq m in Area 6. Running tracks, energy-saving

lamps, parking spaces and decorative elements were common features of these leisure areas.

"The parks projects in this area came as a response to the public's needs and after a comprehensive study

prepared by the SPW," Al Suwaidi said.

Three parks in Al Qarayen, including one ladies' park, were also built at a cost of Dh17.5 million, while the first

phase of two parks in Al Rahmaniya was completed with a funding of Dh5 million.

Al Jaraiana Ladies Park and Al Houma Park, on the other hand, are about 80 per cent done, and the Martyrs'

Memorial Square will soon be taking shape, according to the SPW.

Source: Khaleej Times

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With over 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, 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

Executive Director, Valuation & Advisory

+971 4 403 7777

[email protected]

Jenny Weidling BA (Hons)

Manager, Research & Advisory

+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.