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Page 1: NEWS BRIEF #16 - Asteco Property Management€¦ · Emaar launches 2 towers in Downtown; sale on April 17 Efforts already underway to ‘flip’ Dh1m Mira villas from Emaar Dubai

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

DUBAI | ABU DHABI | AL AIN | SHARJAH | QATAR | JORDAN © Asteco Property Management, 2013 asteco.com | astecoreports.com

IN THE MIDDLE EAST FOR 28 YEARS Page 1

RESEARCH DEPARTMENT

NEWS BRIEF #16 SUNDAY 21 APRIL 2013

Page 2: NEWS BRIEF #16 - Asteco Property Management€¦ · Emaar launches 2 towers in Downtown; sale on April 17 Efforts already underway to ‘flip’ Dh1m Mira villas from Emaar Dubai

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

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REAL ESTATE NEWS UAE

UAE is Asia’s third strongest economy Dubizzle identifies UAE property market pick-up Tasweek in Dh800m investment The good, the bad and the ugly of UAE real estate in 2012, reports Bayut.com UAE mortgage cap will not end flipping in Dubai property market

ABU DHABI

Property now affordable in parts of Abu Dhabi Abu Dhabi home investments notch 8% gains Abu Dhabi continues to experience rental deflation: CBRE Abu Dhabi Rosewood Hotel to blossom in May Arabtec to lease entire office tower within WTC Eshraq to re-start work in The Gateway, 500 flats on Reem Island Abu Dhabi housing demand boosted by decree for employees to live in emirate President's Initiatives Follow-up Committee approves development projects worth AED

800 million Abu Dhabi Commercial Properties secures new lease with Carrefour for AD-1 Tower New scheme to protect property rights for Abu Dhabi residents Abu Dhabi: Mubadala sells 10 plots of land on Al Maryah Island Abu Dhabi's tallest building ready for residents in 2014 Commercial plots released for sale on Saadiyat Aldar wins deal to build 996 villas in Abu Dhabi

DUBAI

Dubai Sustainable City off-plan sales starts in July Dubai rents up 10% this year: Expect rentals to go up further Falcon City of wonders to sell villas, begin construction Tecom parking permit woes: Motorists see red in Dubai Media, Internet City Emaar launches 2 towers in Downtown; sale on April 17 Efforts already underway to ‘flip’ Dh1m Mira villas from Emaar Dubai landlords must give 90-day notice to tenants for any rent hike JLT: For Dh50,000 ‘only’, the parking space can be yours Dubai Marina, Palm Jumeirah, Downtown most popular among property buyers Burj Vista registration ends in 30 minutes? Prime office rents rise in Dubai Dh150 million Dubai Safari to showcase wildlife in natural setting Up to 44,000 homes projected to come to market this year in Dubai Burj Vista units sold from Dh2000psf Discovery residents seek cards

NORTHERN EMIRATES

Rents in Sharjah soaring by 30 per cent UAE: Buyers eyeing holiday homes in RAK Construction of Khalifa Bin Zayed Marine Research Center in Umm Al Qaiwain starts

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ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

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QATAR

Grand Heritage to open new hotel in Doha KSA

Real estate experts expect the housing bubble to burst soon King orders land and home loans for Saudis Factories outside industrial areas to be shifted Madinah municipality to distribute housing plots

BAHRAIN

Majaal breaks ground on new construction in Bahrain OTHER

Al Maabar develops Aqaba, Amman, Morocco projects Investors seek out safe havens across UK Strong govt spending boosts real estate growth: Cluttons Hamptons International launches new London property in the UAE at 'The Collection' with

10% deposit option Newly formed OREA to oversee housing sector Association urges govt to allot land to private developers for affordable flats

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Property now affordable in parts of Abu Dhabi

SUNDAY 14 APRIL 2013

Abu Dhabi has become a more affordable place to live due to a drop in residential rents over the past 18 months caused by general oversupply and low demand, companies tracking the real estate sector in the UAE said yesterday.

“Older areas such as those located on Abu Dhabi island...continue to experience low demand and falling rents as people choose to upgrade to more modern developments. The fall in rents has helped to encourage people who commute to Abu Dhabi from Dubai for work to relocate to the capital, especially while rents increase in Dubai, said Cluttons in its 2013 first quarter market report for Abu Dhabi.

However, the report added that residential rents in areas benefiting from strong demand have increased by as much as 25 per cent during the last six months, defying general trends across the market.

“Since October 2012 there have been a number of large-scale announcements, demonstrating Abu Dhabi’s commitment to its economy and real estate sector. The merging of developer giants Aldar and Sorouh, and the announcement that Abu Dhabi’s Executive Council plans to add Dh330 billion into the economy and infrastructure over the next five years, have provoked a feeling of optimism in the real estate sector. In September 2012, the government announced that all its employees and those of government-affiliated companies must live in Abu Dhabi, which has helped to drive residential demand,” said Cluttons.

High quality

“Average rents for prime residential units increased by approximately 8 per cent from the fourth quarter of 2012 to the first quarter of 2013. This improvement does not represent a market-wide recovery, but relates to selected high quality developments. However, this is certainly positive for the market, indicating the first signs of market recovery,” David Dudley, Regional Director of Jones Lang LaSalle, a global property advisory firm told Gulf News.

In another report, real estate services firm, Asteco, said in the first quarter, the leasing market in Abu Dhabi remained strong with good levels of demand increasing upward pressure on average rental rates by as much as 8 per cent, particularly in the high-end segment driven by tenants seeking quality and those seeking the most affordable areas.

“The rental gap is narrowing between Abu Dhabi and Dubai, which combined with improved quality, means that Abu Dhabi now has a more competitive offering. Many newcomers to the UAE are also now preferring to live in the UAE capital rather than commute from Dubai,” said Paul Maisfield, Associate Director and General Manager, Asteco Property Management in Abu Dhabi.

Asteco said a two-bedroom apartment in Saadiyat Beach now commands an average rental rate of between Dh135,000 and Dh190,000 and rates for two-bedroom properties in the Al Raha Beach area grew to between Dh125,000 and Dh170,000. More affordable two-bedroom apartments in MBZ and Mussafah were renting on average for between Dh45,000 and Dh55,000 per annum.

Source: Gulf News

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Dubai Sustainable City off-plan sales starts in July

SUNDAY 14 APRIL 2013

Off-plan sales for Dubai’s first sustainable city will begin in July, Faris Saeed, chairman and chief executive of Diamond Developers, told Gulf News.

Work on Dubai Sustainable City will start at the end of April with landscaping the project whose green areas account for 70 per cent of the total space, the developer said. Construction of the residential and commercial components of the $1 billion city will start in June, Saeed said.

The project is expected to be completed by September 2015, he added.

About 20 to 30 per cent of the cost will be self-funded and the remaining amount will be secured through bank loans, long-term investors and off-sale plans, the developer said.

Investors have been secured for long-term projects within the city including a school and university for environmental sciences, he said.

Market price

Property prices at the green project “will not be more than market price,” said Saeed, addressing concerns that green properties may be more expensive than regular ones.

The project has 500 residents units, a mix of townhouses and villas.

By owning a residential property at the city, investors will also own a share in the shopping mall there and receive revenues that will cover their service fees, community fees and “a good part of their Dewa bill,” said Saeed.

There will also be a car-free zone and solar-powered golf carts for each house, he added. The five million square feet Dubai Sustainable City, a mixed use project, will adopt initiatives to reduce carbon emissions by more than 75 per cent and will be a zero-waste city. It will be surrounded by a green belt of 100,000 trees and include organic farms.

Source: Gulf News

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Dubai rents up 10% this year: Expect rentals to go up further

MONDAY 15 APRIL 2013

Tenants in Dubai are prepping themselves to shell out more in rent this year as landlords, after a few years of falling rental income, are set to take advantage of the emirate’s much improved real estate market.

Annual rents hikes are now a given and the first quarter of this year saw a considerable increase in asking rents. “The rental market maintained its positive trend in Q1 2013,” states real estate specialist Jones Lang LaSalle (JLL) in its latest report.

“Reidin Rental Indices recording an improvement of 10 per cent year-over-year. Both the villa and apartment rent indices went up by 10 per cent year-over-year. While the villa rental index has achieved its peak value in February 2013, the apartment rental index remains 26 per cent lower than in January 2009 (when the index commenced),” said the report by JLL.

Rentals have spiked the most in well-established areas whereas secondary locations remain stable.

As per JLL findings, areas such as Burj Downtown, Dubai Marina and Palm Jumeirah have seen the highest jump in rents while well-established residential communities in central Dubai are expected to see further price and rental growth over the rest of 2013.

On the other hand, less completed projects in more remote areas will need more time before witnessing an increased demand and performance.

An Indian living in Dubai’s Springs area confirmed that his landlord has already sought an increase in his rent as his contract comes up for renewal in a month.

“I live in a three-bedroom unit in The Springs (a type 3M). I signed the lease last year and paid Dh130,000 in one cheque. My landlord’s agent now tells me that such a villa is now being leased for nothing less than Dh140,000 to Dh150,000 per annum,” he told Emirates 24|7.

Based on online classifieds, popular villa community Arabian Ranches has seen a rent spike of 25 per cent year-on-year. The rent now for a two-bedroom villa in the community is Dh125,000 whereas a similar villa in The Springs can now be rented for Dh95,000 per annum, which is again a similar 25 per cent year-on-year increase.

Source: Emirates Business 24/7

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Falcon City of wonders to sell villas, begin construction

MONDAY 15 APRIL 2013

Villas at the Falcon City of Wonders (FCW) will be offered for sale at the end of the month and construction on some replicas of the seven wonders of the world is planned by year end, a top company official said.

The ambitious falcon-shaped project, spanning 41 million square feet along Shaikh Mohammad bin Zayed Road, will offer reproductions of the wonders of the world, a shopping mall, hotels, residential areas and a theme park.

Currently 214 villas are under construction, of which 100 units are already sold and 114 villas will be launched during the International Property Show on April 30, Salem Al Moosa, chairman and chief executive of Falcon City, said yesterday during a media tour of the project site. The project plans 1,156 villas in total.

The villas, by Modern Building Contracting Company, are scheduled for completion in February 2014.

The project pipeline also includes a shopping mall located on the head of the falcon-shaped city and replica’s of Egypt’s small and medium pyramids that are in the design phase, Al Harith bin Salem Al Moosa, deputy chief executive of Falcon City.

FCW broke ground for a 15,000 square meter community centre yesterday that will include a hypermarket, clinic, pharmacy, restaurants, and a nursery. It is scheduled for completion by August 2014 and contracted by Seidco General Contracting, Al Moosa said.

The entire project will take seven to ten years to complete and is self-funded, Al Moosa said, insisting that funds are available to finish it.

Several sub-cities planned within the project have been sold to sub-developers, including the city of Rome, Venice, London and Paris, Al Moosa said.

Project status

The project was announced six years ago during the heyday of the boom years in Dubai. Today, 366 villas are completed with only 308 families living there and infrastructure work including roads, a Dh 125 million power plant and sewage plant are finished.

The company spent a total of Dh600 million on infrastructure for the mega-project whose master-developer is Dubailand, Al Moosa said.

“It simply takes time. There is no magic stick. It is not a matter of money. There were unforeseen circumstances and a lot of problem-solving, that’s why we didn’t go full swing in construction,” Al Moosa said. Al Moosa said the project took time because of the infrastructure work, the financial crisis hindered the market and difficulty finding reliable contractors because most are “busy.”

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“We exist, we are here. People think we are not working,” Al Moosa said, adding that the company’s plans will go forward.

Source: Gulf News

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Tecom parking permit woes: Motorists see red in Dubai Media, Internet City

TUESDAY 16 APRIL 2013

A strange sight greeted those working in Knowledge Village, Dubai Media and Internet City on Sunday morning; the daily struggle to find a vacant parking spot had given way to empty lots as the Tecom community implemented paid permit zones over the weekend.

For people who had failed to secure valid Roads and Transports Authority permits by their respective employers in the free zone had no choice but to desert cars at home or cough up the fines that would be levied upon them if parked in these exclusive zones.

Many workers voiced their displeasure, complaining over the added burden of cost, along with limited parking permits leaving several of them in the lurch of being unable to accommodate their cars at work.

An employee with MBC spoke to Emirates 24|7 on the condition of anonymity, saying: “We have a staff of over 1,000 commuting with cars to work every day, while our organisation has been allotted 850 parking spaces.

“At least we are in a better position than most, because the office has agreed to shoulder half of the employee cost for these parking permits, while the remaining 50 per cent needs to be paid by us.”

In an official correspondence to its staff, MBC, laid out its limitations, saying: ‘Media City will provide us 550 spaces at Dh2,075 each. This is clearly insufficient. However, we have been able to purchase a further 400 spaces at Media One hotel and Al Shatta Towers.

‘These are more expensive and have cost us Dh4,500 for each space. In total, we, therefore, now have access to 950 spaces’.

MBC’s partly subsidised parking proposal still leaves its employees with an annual bill of Dh1,800 if choosing a spot near the office or Dh900 per year if taking the further location, which is “a 10 minute walk easily to the office,” said the frustrated employee.

And those employees who are willing to fork over the extra amount to avoid the daily trek would still have to wait for their number, as MBC stated it may ‘have to ration the spaces. We will do the rationing based on grade seniority and gender (with preference for ladies as we wish to avoid them having to walk across the park late at night).

‘If you wish to car pool – you will clearly save money’.

“Our company has also agreed upon employing shuttle buses from the Media One lot at a duration of every 20 minutes or so to avoid us the walk to work in the scorching summer heat,” he added. “But between paying approximately Dh400 per month for parking my car at work, additionally to the Dh200 I spend for parking at my residence, it’s a cheaper proposition for me to sell off my car and commute with a taxi to my office on a daily basis.”

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Such a dilemma is not limited to MBC staff employees alone; R M who works with Thomson Reuters said: “I didn’t drive to work on Sunday over this parking issue that RTA has left us with. Our company employees over 200 people and between us, we have approximately 60 permits.

“Our HR department is working round the clock trying to sort out the issue, but what can the game plan be? We have to pay or leave our cars at home.

“What I fail to understand is the lack of planning that went into this decision. How can you start issuing parking permits for companies when you don’t have enough spaces to allocate?”

For Srinivas Karuturi, his eight-employee organisation in DIC has managed to bag all of one permit; the remaining seven can fend for themselves.

“The law states that one parking permit will be issued for every 400 square feet of office space; our office is 667 sq ft,” he said. “I have no solution but to circle around the free zone every morning, hoping to find a spot in street parking. Even that turns into a costly affair or Dh11 for four hours. You pull an eight-hour shift at office and be ready to set yourself back by Dh22 every day; if you cross Salik, then do the math.”

In an emailed statement to Emirates 24|7, Badr Al Gargawi, CEO of Engineering at Tecom Investments, cited this move “as a response to increasing traffic congestion in Dubai Internet City, Dubai Knowledge Village and Dubai Media City,” adding that the reason behind this initiative was to “provide a more efficient solution to the ever-increasing demand for parking in these locations.”

He continued: “As an alternative to driving, there are several public transport options available, including the metro, bus and taxis. There is also the opportunity to car pool.

“The three business parks are all only a short walk from Dubai Metro and the area is accessible by feeder buses. Bus lines 83, 85, 32A and 39A service the district.

“The RTA will keep monitoring the situation in order to try and ensure public transport is both helpful and affordable.”

However, employees working in the Tecom zone appear not convinced.

Rajan Shetty who works in DIC said: “If I resort to commuting via the Dubai Metro and resorting to the feeder buses, I am easily adding an additional four hours to my daily commute, back and forth.

“And I am saying this from experience because I attempted a few practice rounds when news first broke of the parking permit law that was to be implemented.”

Shetty, who lives in Karama, stated that he has to take a feeder bus to the metro station in the district, which is an “easy 30 minute process”, followed by another 40 minutes that take to get to the Media City metro station.

“The feeder bus wait is usually an average of 20 minutes, followed by the same time spent getting to my office. And it doesn’t drop me under my building, so I spend another few minutes making my way to work.”

Karuturi added: “I live in Tecom itself but a taxi fare sets me back Dh25 daily; and if I attempt using the metro or bus, I have to spend at least an added hour in commute considering the public transport has yet to be fully utilised here.

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“Added to that is the lack of shades at bus stops in DIC, DMC and DKV; in the summer months you literally are in danger of suffering from a heat stroke.

“People also suggest carpooling, but that isn’t an option for me either. So what choice am I really left with?”

Source: Emirates Business 24/7

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UAE is Asia’s third strongest economy

TUESDAY 16 APRIL 2013

The UAE’s continuous improvement in competitiveness helped it to become Asia’s third strongest economy, said a think-tank in its recently-released annual report.

“The UAE’s overall economic strength has surpassed China up to 3rd,” Boao Forum for Asia said in its Asian Competitiveness Annual Report 2013.’

The results, based on a full-year study by the think-tank, of assessment of 37 Asian and Middle Eastern countries showed that the UAE was the 7th strongest economy of Asia last year but improved its ranking further in 2012 to third, surpassing China, South Korea, Taiwan and Qatar.

Overall, the rankings of the UAE, Saudi Arabia, Bahrain, Qatar, Kuwait, and Kazakhstan outstripped Asian emerging economies, especially the UAE who came in at 6th thanks to its rapid economic development, healthy economic environment, low inflation and unemployment rate, a government debt to GDP standing at 16.9 per cent and national savings over 30 per cent.

“The UAE’s economy developed more productively compared with other oil-export West Asian countries, despite a mild 5.2 per cent economic growth rate. Additionally, its inflation rate is only 0.88 per cent, unemployment rate four per cent and government debts to GDP ratio as low as 16.89 per cent. With a stable industrial structure and low risky financial environment, the United Arab Emirates ranked high,” Boao report said.

Amongst other Middle Eastern and Central Asian resource-export economies, Bahrain ranks 7th, Kazakhstan 9th, Oman 10th and Kuwait, Saudi Arabia and Qatar from 12th-14th. Jordan performs poorly amongst Middle East economies at 24th.

In the category of competitiveness, the UAE was rated 6th among 37 Asian countries, ahead of China, Japan, Malaysia, Saudi Arabia, Qatar, Kuwait, Turkey and other countries.

The emirate’s ranking jumped from 14th in 2011 to 6th in 2012. The top ranking is dominated by “East Asian Tigers” namely Hong Kong, Singapore, Taiwan and South Korea and Australia.

Regionally, Hong Kong and Singapore retained their first and second positions, respectively, for the second consecutive year. Other economies in the top ten include China, Taiwan, Korea, Bahrain, Australia, Kazakhstan and Oman.

The UAE was rated 27th in rankings of Commercial and Administrative Efficiency Indicator for Asian Economies. In the development of infrastructure development, the emirate dropped three places to be rated 8th in the Asian region.

“The UAE improved its infrastructure construction somewhat, but its greatly reduced power supply pulled down its ranking,” Boao Forum report said.

In the sub-index of Human Capital and Innovation Capability, the emirate was rated 17th in the report.

Boao report said: Middle Eastern and central Asian oil export countries benefited from the oil price hike in 2012… The rise of oil prices contributed to the Middle East’s oil export economies and pushed their rankings upwards.

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Source: Emirates Business 24/7

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Emaar launches 2 towers in Downtown; sale on April 17

MONDAY 15 APRIL 2013

After selling out three-bedroom town houses in Mira development on Saturday, Emaar Properties has announced launch of two towers, comprising 640 apartments, in Downtown Dubai.

Located on Mohammed Bin Rashid Boulevard, Burj Vista consists of two identically designed towers, one 20 storey high and the other at 65 storey, with 120 and 520 luxury apartments, respectively.

Burj Vista will have lavish terraces that open to uninterrupted, front-seat views of the city’s skyline, The Dubai Fountain and the wider Downtown Dubai neighbourhood. The spacious front terraces wrap around in a distinct staggered honeycomb pattern that makes the project a modern marvel in urban architecture.

Customers can register online for 1, 2, and 3-bedroom apartments in Burj Vista from 10am, Wednesday, April 17, 2013, at www.emaar.com. The sales event will commence at 9am on Saturday, April 20, on a first-registered, first-served basis at the Emaar Sales Centre in Emaar Square, Downtown Dubai.

Ahmad Al Matrooshi, Managing Director, Emaar Properties, said: “Burj Vista is an architectural tribute to the iconic Burj Khalifa. It brings the unmatched combination of a spectacular location, elegant architecture, panoramic views and a more sustainable way of living with the unique design promoting energy use efficiency. Burj Vista will be an ideal first or second home for the discerning, who cherish a modern lifestyle in Dubai’s most vibrant community.”

Other amenities include a fully-equipped gymnasium, children’s play areas, multimedia hall, business centre, play room, lounge areas, swimming pool and kid’s pool, badminton and half a basketball court, relaxing reading areas and lushly landscaped areas.

Recently, Emaar launched Mira townhouses in Reem, and The Address The BLVD, The Address Residence Fountain Views and The Address Residence Sky View in Downtown Dubai. All the project launches recorded overwhelming response, the developer said.

Source: Emirates Business 24/7

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Efforts already underway to ‘flip’ Dh1m Mira villas from Emaar

MONDAY 15 APRIL 2013

Buyers have started to flip units in Emaar’s latest townhouse development, seeking premiums of 12 to 20 per cent regardless of there being a 18 month lock in period during which investors are prohibited from transferring the property.

An online portal has got several listings of the three-bedroom town houses in Mira development near Arabian Ranches. A brokerage firm, Distinct Real Estate, is asking anywhere between 12 and 20 per cent premium and has posted several adverts on dubizzle.com.

The payment plan is as follows: five per cent on booking with 20 per cent premium, following by the second installing of 10 per cent to be paid by July 31; third instalment of 15 per cent by December 31; fourth instalment of 10 per cent by April 30, 2014; 10 per cent on 20 per cent construction by August 31, 2014; 15 per cent on 40 per cent construction by December 31, 2014; 15 per cent on 60 per cent construction by May 31, 2015; 10 per cent on 80 per cent construction by October 31, 2015 and 10 per cent on completion and handover by March 31, 2016.

Global Property Solutions, a property brokerage firm, is also seeking 20 per cent premium on the original price of Dh1.77 million.

Asked on how the property transfer will happen, the property agent said: “The seller would either request Emaar to allow transfer on payment of 40 per cent or the seller giving a power of attorney to transfer property in name of the buyer on payment of 40 per cent.”

In January, Emirates 24|7 reported Emaar had barred investors from flipping apartments until they had paid a 40 per cent of the original price.

The 188 units released in Mira development were sold out on Saturday morning after investors queued up for two days outside Emaar’s sales office. The developer had adopted first-come, first-served basis to give more opportunity for investors in the UAE and internationally to be part of the sales.

In its latest report, Jones Lang LaSalle said the demand for new properties follows an increase during the first quarter in sales prices for villas rising 18 per cent year-on-year.

“The real estate investment market has been very active in the first quarter of 2013, with a growing number of residential transactions closing,” the report said.

“While well-established residential communities in central Dubai are expected to see further price and rental growth over the rest of 2013, less completed projects in more remote areas will need more time before seeing increased demand and performance.”

Source: Emirates Business 24/7

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Abu Dhabi home investments notch 8% gains

TUESDAY 16 APRIL 2013

The average asking prices for homes in Abu Dhabi’s investment areas have increased eight per cent in the first quarter of 2013 but do not reflect a market-wide recovery, according to a report by Jones Lang LaSalle (JLL).

Average prices in investment areas rose to Dh11,000 per square metre from Dh10,200 in the fourth quarter, according to JLL’s Abu Dhabi Real Estate Market Overview. Average asking prices reached approximately Dh12,000 per square metre for apartments and Dh9,900 per square metre for villas.

However, the price rises are restricted to investment areas and do not reflect a market-wide recovery, the report stated.

The property consultancy attributed the rise to Abu Dhabi’s ‘safe haven’ status amid region-wide political unrest, increased job stability encouraging people to buy rather than rent property, and improving facilities in master planned areas.

“There is also additional demand from investors looking to capture price growth from a potential future upswing,” the report stated.

In terms of rentals, the wider market continues to see declining rents, resulting in a divergence of the residential market’s performance.

Prime buildings have shown signs of “stabilisation and selective recovery” but secondary stock continues to experience downward pressure on rents, the report showed.

“The properties that will experience the strongest rental recovery are those focused on end user requirements, providing a high level of amenity and facilities in addition to sufficient parking,” the report stated.

“Rents in Abu Dhabi have also become relatively more affordable, as those in Dubai have begun to rise. This has helped to encourage more renters to consider relocating to the capital,” it noted.

Average asking prices for two-bedroom apartments in prime developments reached Dh13,000 per year in the first quarter, an increase of about eight per cent from the last quarter.

Source: Gulf News

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Dubai landlords must give 90-day notice to tenants for any rent hike

WEDNESDAY 17 APRIL 2013

A landlord must give a 90-day notice to his tenant if he plans to increase the rent, which has to be based on Real Estate Regulatory Agency’s (Rera) rent index, the Dubai Land Department (DLD) has said.

In response to a query on Twitter, the DLD said: “Landlord can only increase tenant’s rent if it is equal or less than the market value by 26 per cent or more, as per the index issued and updated by Rera, provided the landlord gives a 90-day notice period.

“If current rent is lower than the index by 26 to 35 per cent, the increase will be 5 per cent; 36 to 45 per cent, the increase is 10 per cent; 45 to 55 per cent, the increase is 15 per cent and over 55 per cent the increase should be maximum of 20 per cent.”

The rent increase calculator can be accessed online at www.dubailand.gov.ae

The increase is due every year from the first renewal, the DLD said, adding in case of dispute, the Dubai Municipality Rental Dispute Committee needs to be approached, provided the rent lease agreement is registered in Ejari.

A number of residents have been complaining of unjustified rent hike by their landlords.

S Kristen, who has rented a two-bed apartment in the Greens, told Emirates 24/7: “ I haven’t been given a 90-day notice by my landlord as my tenancy contract gets over in May. I was informed of the rent hike last week. I have checked the Rera calculator, which states no increase.”

He asserts: “I don’t intend to file a complaint with the Dubai Municipality. I would vacate since I want to stick to my budget and not exceed it in any case.”

Emirates 24/7 first reported in October 2012 that landlords had started arbitrarily increasing rents, ignoring the rental calculator set up by Rera for the purpose.

Tenants living in Jumeirah Lakes Towers, Discovery Gardens and the Springs, said their landlords were telling to accept the new rent or vacate the apartment.

B Brian, who stays in Discovery Gardens, had said: “My landlord has hiked my rent by Dh6,000. I am currently paying Dh39,000 for a one-bed, while the Rera rent calculator shows no increase. My landlord told me to pay or leave since his agent has already found someone who was willing to pay Dh45,000 in two cheques.”

Earlier this week, Jones Lang LaSalle (JLL), a global property consultancy, said residential rents in Dubai rose 10 per cent year-on-year in the first quarter of the year, with established areas in expected to witness further rental growth over the rest of 2013.

Rents have mainly increased in areas such as Burj Downtown, Dubai Marina and Palm Jumeirah, but have remained stable in secondary and less completed locations.

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“Well-established residential communities in central Dubai are expected to see further price and rental growth over the rest of 2013, while less completed projects in more remote areas will need more time before seeing increased demand and performance,” JLL said.

Source: Emirates Business 24/7

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JLT: For Dh50,000 ‘only’, the parking space can be yours

WEDNESDAY 17 APRIL 2013

Residents in Cluster V of Jumeirah Lakes Tower (JLT) saw the ‘soft’ activation of parking barriers on Sunday. This means that for a period of two weeks, residents are given the opportunity to make arrangements to secure their parking space until April 28, when the ‘hard’ activation will commence.

However, when the parking space required is not allocated to the resident, acquiring one is said more easily than it is done.

A tenant living in Gold Crest Views 1 narrates: “We have two cars, but were allocated only one parking slot. I would like to know what to do with my second car. Do I need to buy an additional parking space?”

Indeed, buying a parking space is one of the options made available by building developers, who bought the parking slots in bulk from master developer DMCC when these were made available. But when told about the price of such a parking space, … was rather shocked. “I was asked to pay Dh50,000!”

Owners and tenants can buy parking space from the sub-developer, explains DMCC, as these developers own the right of use of these spaces. There is no price cap; it is the responsibility of the sub-developer, commented DMCC.

Another option is buying parking space directly from DMCC, following the Parking Permit scheme. “In addition to the aforementioned parking arrangements, DMCC is introducing a Parking Permit scheme, which will give permit holders access to DMCC retained parking spaces where available,” DMCC explains.

Costs for each parking permit are Dh4,500 for a 12 moths-period, D2,500 for a 6 months-period and Dh1,500 for a 3 months-period.

But when asked DMCC about the option, he learnt that no such options were available in his building, as the sub-developer had bought up all the available parking slots. “DMCC has no retained parking in Cluster V that could be included in its JLT Permit Parking Scheme as all the parking bays in Cluster V have been secured by the three tower developers,” said the mail he received in reply from DMCC.

So what other options are there?

Attached in the mail was a map of overflow parking sites located within the landscaped areas throughout the community, about which DMCC said: “Parking on these sites is currently free of charge and will attract very low rates when the visitor paid parking system is introduced later in 2013. The overflow parking near Cluster V (located between Clusters V and W) consists of 106 bays free of charge.”

In some cases, residents may apply for parking permits in other clusters, as DMCC explains: “Applications for DMCC retained parking bays are available on a first come served basis, however, people based in neighbouring clusters can apply, where spaces are available.”

In addition, street level parking is available across JLT.

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The parking barrier activation process commenced in September 2012. Cluster D was the first cluster to see the barriers go down, and other clusters soon followed, with the entire process expected to complete by summer 2013.

“The activation of the parking barriers is designed to allow individuals and corporations who have purchased the right to the exclusive use of parking spaces to utilize of those parking bays,” master developer DMCC said.

Currently barriers have gone down in 15 clusters: B, D, A, M, N, G, S, J, H, I, Q, X, U, Y and V.

DMCC continues to emphasize that the entitlement to one or more parking spaces is primarily the responsibility of the individual developer, owners association or landlord.

It furthermore said: “Until the paid parking system is in place, visitors can park in the retail parking areas at Concourse (above ground) level for free for 2 hours. The system is designed to support the retail businesses there, as well as visitors to the towers.

“A Dh200 fine will apply for individuals who park in areas marked retail parking located at Concourse (above ground) level, for more than 2 hours. Those who require more time at certain businesses, such as restaurants and salons, can present receipts or notes from the respective retailer to have their fine voided, if applicable.”

Source: Emirates Business 24/7

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Dubai Marina, Palm Jumeirah, Downtown most popular among property buyers

WEDNESDAY 17 APRIL 2013

Dubai Marina and Palm Jumeirah continue to remain the most popular residential areas for property buyers followed by Downtown Dubai, says a new report.

“Dubai Marina and Palm Jumeirah remain the two most searched locations since the beginning of 2012 offering investors and buyers a proven option for solid capital returns,” Propertyfinder, a UAE-based real estate portal, said in its first quarter 2013 report.

“Downtown Dubai has risen to third place overtaking Jumeirah Lakes Towers (JLT) as the development becomes more complete with the added attraction of Burj Khalifa drawing in more interest,” it adds.

In the first four months of 2013, Downtown has witnessed launch of four projects by Emaar Properties, the master developer, and one project by Damac Properties.

On the rental side, the most desired location remains Dubai Marina. However, JLT beats Downtown Dubai to take the second position.

The reports states that Palm Jumeirah has fallen to the fourth position compared to first quarter 2012 due to reasons such as sharp rise in rents over the past one year, community service charges not being paid and lack of amenities such as convenience stores.

Nakheel, the master developer of the Palm, has already announced plans to build Nakheel Mall which it said would open in 2016.

According to Propertyfinder, rents on average have risen across the city compared to same period last year, showing a more bullish rental market.

Renan Bourdeau, Managing Director, Propertyfinder, says: “The Propertyfinder statistics from the first quarter of 2013 have been particularly illuminating and seem to support the idea that rental prices are going up in the country, which is a clear signifier of market recovery.

“It also seems residents feel they have more money to spend when it comes to choosing a home, which is good news for the industry and the economy as a whole.”

The report, however, states that renters are more interested in developments that offer better value for money and communities that are complete with amenities than those that are incomplete or have witnessed higher rent rises.

Demand for units in “unfinished” communities, such as Dubailand, Jumeirah Village Circle and Business Bay have reduced with the report referring to rising rents in these communities.

Tecom has completely dropped out of the top 10 and this could be down to the lack of available units as the community appears to be running at 95 per cent occupancy.

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The lowest rental band of Dh0-20,000 a year for accommodation has dropped considerably in popularity. The portal’s data also reveals there is a significant drop in traffic for low priced property with higher price bands seeing an increase in views.

Source: Emirates Business 24/7

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Al Maabar develops Aqaba, Amman, Morocco projects

WEDNESDAY 17 APRIL 2013

Property developer Al Maabar is developing two key projects in Jordan, namely Marsa Zayed in Aqaba, a mixed-use project and the St. Regis Amman and The Residences at the St. Regis Amman, located in Abdoun Area, consisting of a hotel and two residential towers, Yousuf Al Nowais, Managing Director of Al Maabar, told Gulf News.

“The St. Regis Amman is the first St. Regis property to be developed in Jordan. We are delighted by the bookings for the Residences at the St. Regis Amman, to date, which are now more than 25 per cent,” Al Nowais said.

He added: “These figures represent bookings prior to the official sales launch for the first private branded residences to be available for purchase in Jordan.”

Al Nowais pointed out: “Projects cost of Marsa Zayed, Aqaba, is estimated at $10 billion (Dh36.78 billion) while the cost of the St. Regis Amman and the Residences are estimated at $300 million.”

“Marsa Zayed is currently in the first project phase, which includes Al Raha Village, which is the development’s first residential neighbourhood, and Shaikh Zayed Masjid, which will accommodate 2,000 worshippers upon completion,” said Al Nowais.

Earlier this month, Al Maabar announced that it has selected the preferred bidder for the main contracting works at Al Raha Village; Omar Abu Sa’ad and Sons Co. for a 26-month contract.

“The preferred bidder was selected from a pool of 10 qualified and experienced Jordanian contractors based on a set of stringent criteria, including their financial and technical strength,” said Al Nowais.

Phase I of the Marsa Zayed will complete in 2015, said Al Nowais.

Al Maabar said that Marsa Zayed’s first project milestone entails the completion of Shaikh Zayed Masjid, which will be completed in 10-12 months.

Al Nowais remarked that the December 2012 inauguration of Shaikh Zayed Masjid, marked the first step of Marsa Zayed’s construction phase.

He pointed out that the second project milestone is the completion of Al Raha Village, soon to be launched, which includes 450 residential units, a clubhouse and serviced by a wide range of community living facilities that will provide a unique and serene lifestyle for the residents of Aqaba.

The company said that Marsa Zayed, named in memory of the late Shaikh Zayed Bin Sultan Al Nahyan, is not only the largest mixed-use development project in Jordan, but also in the region, encompassing 3.2 million square meters of built-up area, which will include apartments, townhouses, high-rise residential, retail spaces, hotels, recreation, entertainment, business and financial districts.

Morocco investments

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Total sales of the Marina and River Front District residences of Bab Al Bahr project, which were delivered to owners in 2012, has now surpassed the 80 per cent mark, said Al Nowais.

“Phase two of the Bab Al Bahr development has been initiated, marked by the launch of the Arts District, which showcases a variety of luxury residential buildings, a five-star hotel, boutiques, an array of art galleries and museums and dining establishments is under construction and that 50 per cent of its has been sold,” he said.

The cost of the project is $450 million, he said.

He added that once completed, they will start Phase III.

As for Libya, Al Nowais that the company had started a project in Tripoli before the Arab Spring and they ceased it accordingly.

“We stopped tendering for the project at Al Wahat in the Centre of Tripoli shortly after the Arab Spring. The development of the project is estimated at US$200 million,” said Al Nowais.

Source: Gulf News

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Abu Dhabi continues to experience rental deflation: CBRE

WEDNESDAY 17 APRIL 2013

Secondary office and residential products in Abu Dhabi continue to experience rental deflation. A research by CBRE, a global property advisory services firm has shown.

The CBRE report, which was released yesterday during the ongoing realty exhibition ‘Cityscape Abu Dhabi’ in the capital said although the first quarter of 2013 has seen steady economic progress, no positive movement has been recorded within either the office or residential markets.

“Prime office rents within Abu Dhabi’s premium developments have remained flat at Dh1,600-1,900/m²/annum. In contrast to the broadly stable prime office rents, secondary office products are suffering from significant rental deflation with a drop of around 3 per cent recorded over the previous quarter. Secondary office rents now typically range between Dh675-1,250/m²/annum,” said the report.

As regards the residential market, CBRE said average annual rents for two-bedroom and three-bedroom apartments in the city centre range between Dh50,000-120,000 per unit per annum and Dh70,000-150,000 per unit per annum, respectively.

“The relatively stable supply picture in the city centre has helped to maintain comparatively strong rents and occupancy rates, despite declines across similar products in other locations. Overall, average residential rents across the capital slid by around 3 per cent from previous quarter,” said the report.

Matthew Green, Head of Research UAE, CBRE Middle East told Gulf News in an email there are signs that stability will soon be returning to the emirate.

“The prime market has already shown some initial signs of improvement, with a number of premium apartment properties recording isolated growth in recent quarters. With 17,000 residential new units set to be delivered over the course of 2013, any imminent recovery will certainly be fragmented, with areas of oversupply taking longer to return to growth, he added.

Green said with close to 0.7 million square metres of new stock set to be completed this year, there is likely to be a further slide in rents over the course of the year as vacancy rates continue to rise.

“However, despite issues in the wider market, prime offices are now seeing some renewed interest, driven principally by international corporates. With the US economy showing signs of an improvement and a Eurozone crisis averted for now, a number of stalled space requirements are now being revisited,” he added.

The CBRE report noted that the Abu Dhabi Executive Council has announced plans to invest around Dh30 billion over the next five years to help stimulate activity, not only in the capital, but throughout the emirates.

“The 5-year development plan is intended to expand socio-economic infrastructure and create around 5,000 new jobs. The commitment to sustained expenditure on physical and soft infrastructure in Abu Dhabi remains the main driver for the local property market,” it added.

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Source: Gulf News

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Burj Vista registration ends in 30 minutes?

WEDNESDAY 17 APRIL 2013

The online registration for Emaar Properties’ new project Burj Vista in Downtown Dubai closed in about 30 minutes, registered company brokers told Emirates 24|7.

“Yes, we did manage to register online, but it closed in 30 minutes. Since the registrations were online, we will hopefully not see people queuing up like before,” an Emaar registered agent said on conditions of anonymity.

Another registered agent said: “We had our people ready to log on to the website at 9am. We did register but at around 9.30am, we got the following message: Thank you for your interest in our online registration for Burj Vista. We regret to inform you that the registration is now closed.”

He added: “Emaar does not release all its stock on the launch date. It does hold back a substantial portion that it releases in phases. For now, on the launch date, we are not sure of the number of units being released or their prices.”

Market sources believe Emaar will look to sell the units just below the rates at which it sold the serviced apartments since demand for apartment in Downtown Dubai have increased significantly.

Emaar had announced launch of two towers, comprising 640 apartments, in Downtown Dubai on Monday.

Located on Mohammed Bin Rashid Boulevard, Burj Vista consists of two identically designed towers, one 20 storey high and the other at 65 storey, with 120 and 520 luxury apartments, respectively.

Other amenities include a fully-equipped gymnasium, children’s play areas, multimedia hall, business centre, play room, lounge areas, swimming pool and kid’s pool, badminton and half a basketball court, relaxing reading areas and lushly landscaped areas.

All the projects – Mira townhouses in Reem; The Address The BLVD; The Address Residence Fountain Views and The Address Residence Sky View in Downtown Dubai – Emaar said have recorded overwhelming response.

Source: Emirates Business 24/7

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Prime office rents rise in Dubai

MONDAY 15 APRIL 2013

Property brokers have called the bottom of the Dubai office market as rents in the best-quality buildings began to rise for the first time in more than four years.

Rents for prime offices in the city rose 10 per cent during the first three months of the year after falling in some areas by as much as half during the downturn, according to Jones Lang LaSalle.

The upturn marked the first time since the survey started in 2009 that all sectors of the Dubai property market have shown signs of recovery.

Rents in Dubai’s top office districts such as Sheikh Zayed Road, Burj Khalifa Downtown, Jumeirah Lakes Towers and Tecom rose by 4 per cent over the quarter to an average of Dh1,690 (US$460) per square metre.

Rents at the Dubai International Financial Centre (DIFC), the city’s most expensive office district, remained unchanged at Dh2,370 per sq metres.

The broker said it was aware of potential demand for another 190,000 sq metres of offices, most of which came from professional service, energy and telecoms companies.

With confidence returning to the market and with stalled office schemes such as the Central Park project in DIFC and the next phase of the Dubai World Trade Centre restarting, Jones Lang said that an additional million square feet of new offices could enter the market by the end of the year.

However, the broker added that with about 145,000 sq metres of new offices coming to the market during the first quarter of the year and tenants finding deals in newer stock, older buildings in Dubai will struggle to let.

The quarterly survey of 40 submarkets found that nearly a third (31 per cent) of Dubai’s 7 million sq metres of offices remain empty.

It added that 40 per cent of Dubai’s office blocks are owned by a variety of different owners in so-called “strata titles”, which are less popular with large office tenants.

In terms of rentals, demand is generally picking up and the best- quality products are driving the continued improvements in performance that we are seeing across the residential, office and retail sectors,” said Craig Plumb, the head of research at Jones Lang’s Dubai office.

For these properties we would expect to see further price and rental growth over the rest of 2013. However, lower-quality space in secondary locations will continue to struggle with the continued legacy of oversupply and high vacancy.”

Last week fellow broker Cluttons said that it was seeing rent rises of 10 to 15 per cent in better quality buildings in new business districts such as Jumeirah Lakes Towers, Tecom C, Al Barsha and Business Bay where commercial rents had previously fallen by as much as 50 per cent.

However, it added that across the prime Grade A markets, it continued to see competitive pricing and landlords splitting offices into smaller units in an attempt to attract potential tenants.

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Source: The National

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Abu Dhabi Rosewood Hotel to blossom in May

TUESDAY 16 APRIL 2013

Abu Dhabi’s first Rosewood Hotel and the first to be opened on Mubadala’s ambitious Al Maryah Island is set to open on May 1, the company revealed yesterday.

Speaking exclusively to The National, Ali Eid AlMheiri, the executive director of Mubadala Real Estate and Infrastructure, said that the 189-room five-star hotel would stage a grand opening next month.

According to the hotel chain’s website, room rates start at Dh850 (US$230) a night. A block of 200 serviced apartments operated by the hotel will also come to the market in the coming weeks.

The news, which comes on the eve of the Cityscape Abu Dhabi property show, marks the next significant phase of Mubadala’s Dh4 billion Sowwah Square project, which the strategic investment company owned by the Abu Dhabi Government has been developing for the past six years.

The development aspires to become a new financial centre for the capital along the lines of Canary Wharf in London or La Défense in Paris.

Mubadala said that it had leased 92 per cent of the office space at its 40,000-square metre Al Silla office tower and its 45,000-square metre Al Maqam office tower was 82 per cent let at rents which averaged about Dh1,800 per square metre.

We had to get people to come and appreciate the towers,” Mr AlMheiri said. “At first people said our office space was too expensive compared with the other buildings in Abu Dhabi, but now there is an understanding why the rents are above average for Abu Dhabi space.”

Mr AlMheiri said that Mubadala was likely to start leasing the 98,000 square metres in the scheme’s remaining two office blocks by the end of the year and the company was already in discussions with parties about taking space in them.

However, despite the high occupancy rates on paper, some key tenants have still not moved in. Most notably the Abu Dhabi Securities Exchange, which was slated to have moved from its headquarters on Hamdan Street to a new purpose-built block on the scheme more than a year ago, has still to take up residence.

Mr AlMheiri added that Mubadala was currently marketing 16 plots of land on Al Maryah Island to property developers. In December the company sold four plots to the retail specialist Gulf Related, a joint venture with US counterpart Related. Four more have been sold to the Taiwanese developer Far Glory for a mixed use residential, hotel and office scheme and National Bank of Abu Dhabi and Al Hilal Bank have taken a plot each.

Mubadala declined to say how much the plots cost to purchase.

We have had very strong interest from a lot of people,” Mr AlMheiri said. “But we have a very strict process for finding partners. We need to see what they will bring to the project. We would like to have

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the best partners in the whole world so we can build a skyline like the best of Hong Kong, New York and London.”

Source: The National

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Dubizzle identifies UAE property market pick-up

TUESDAY 16 APRIL 2013

Advertisements for properties worth a total of Dh132 billion have featured on website Dubizzle.com in the past three months.

The website is releasing statistics for the almost 300,000 advertisements posted in the first quarter of this year to help identify trends in the property market.

We want to improve transparency in the market and empower our users,” said Ann Boothello, a marketing specialist for property at Dubizzle.

We’ve decided that we want to put out these stats every quarter, because we have such a large sample size that we can provide trend indicators.”

The first quarterly analytics document will be available from next week.

In Dubai, the value of rent advertisements was Dh18.24bn, and sale was Dh114bn. In Abu Dhabi, the value of rent ads was Dh3.26bn, while sale was Dh2.6bn.

Source: The National

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Arabtec to lease entire office tower within WTC

WEDNESDAY 17 APRIL 2013

Arabtec Holding has leased an entire office building in Abu Dhabi as it seeks to boost its presence in the capital.

The UAE’s biggest builder has signed a long-term agreement with Aldar Properties to move into a 59-storey office tower in the developer’s downtown World Trade Center Abu Dhabi project.

It is not clear how many floors the builder will occupy or if it plans to sub-let space.

The World Trade Center, one of the latest high quality mixed-use developments, is ideally placed to be a base for Arabtec and our subsidiaries in the emirate of Abu Dhabi,” said Hasan Abdulla Ismaik, the managing director and chief executive of Arabtec Holding.

We have reached an agreement to enter into a long-term lease for the commercial tower. The new space is planned to provide room for expansion as we deliver on our new growth strategy.

The company’s headquarters will remain in Dubai, where it is seeking to develop its presence in construction, property and infrastructure.

However, the new offices will support its planned expansion in the oil and gas, power and infrastructure sectors in the capital.

We could not be more pleased to have Arabtec occupy this premium office destination,” said Ali Eid AlMheiri, the chairman of Aldar.

Arabtec, a true local success story in the UAE with projects regionally and globally, is a perfect reflection of what the World Trade Center Offices stand for.”

Mohamed Al Mubarak, the deputy chief executive of Aldar Properties added that the deal was a “true example of UAE corporate growth and success”.

The offices are part of the wider WTC project, which occupies the site of the old outdoor market that was destroyed by a fire in 2002.

The project also includes a souq, which has been open since 2011 and was formerly known as Central Market, and The Mall, a shopping centre due for completion in the third quarter.

In addition, there is an apartment block which is the tallest building in Abu Dhabi. Aldar hopes to start marketing the apartments, which range from one to five bedrooms, by October.

Patrick Bell, the director of development at World Trade Center said there was a lag to fill the office block initially.

Now it will be occupied very quickly, [this] is a great catalyst in this current tough market, to kick-start the overall development,” he said.

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But having a major tenant like Arabtec will also help to support the rest of the WTC project, he added.

Hopefully it will support the residential [part] going forward because no doubt with a full office building, we will have people who will want to live and work within the same development,” said Mr Bell.

He said it was not clear which of Arabtec’s business units and subsidiaries the company intended to move into the building.

It will take about “two or three months” to fit the building out, according to Mr Bell.

They probably have to understand which businesses are going where and the whole move process. They will be going through that as we speak. I would like to think, or hope, that people will be in by the third quarter when we open the retail scheme.”

Source: The National

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UAE mortgage cap will not end flipping in Dubai property market

WEDNESDAY 17 APRIL 2013

The Central Bank’s controversial plan for a cap on mortgages may do little to discourage property speculation, as signs emerge of “flipping” returning to the Dubai market and buyers rushing to the emirate from overseas.

But the plans could force buyers to think more carefully before jumping into the property market, bankers said.

Plans for loan-to-value limits on mortgages were drawn up by the Central Bank in an apparent attempt to cool the property market, but resisted by lenders who feared the collapse of demand for home loans.

Lobbying from the UAE Banks Federation led to a postponement of the mortgage cap, although the plans remain in discussion at the Central Bank.

But bankers have said that the cap was unlikely to halt speculative purchases, which have returned to the Dubai market in force this year.

Speculation is not driven by people taking out mortgages. It’s driven by people with cash,” said Tom Smith, the head of retail banking at United Arab Bank.

However, the Central Bank’s regulation on mortgages could force some buyers to be more cautious before plunging into the market, he added. “No amount of regulation is going to stop speculation... All it can do is bring a sense of sanity to everything.”

The warning comes amid evidence that speculative buying with the intent of speedy resale – also known as “flipping” – is returning to the Dubai market.

The Dubai headquarters of Emaar Properties was the site of chaotic scenes last weekend as a sale of 188 town houses in its Mira development was mobbed by buyers seeking to take advantage of prices as low as Dh988,888, (US$269,231) allocated one per person on a first-come, first-served basis.

Buyers queued at Emaar Square for days in advance, with many leaving empty-handed.

But within less than 24 hours, properties snapped up at Emaar Square were available for resale online at Dubizzle.com, with mark-ups of about 37.5 per cent on their offer prices.

Munir Ul Haq, the managing director of OSS Properties, which is reselling four properties online, said he had spoken to many overseas buyers who had travelled to Dubai specifically to stand in line at Emaar Square.

I’ve met a lot of people who were disappointed to land late in the country, they couldn’t get through to purchase these properties,” he said.

A number of inquiries had come from buyers in India, Pakistan, Iran and China, he added.

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Emaar’s latest property sale for apartments in Burj Vista has switched back to an online registration for its latest sale.

The move towards more stringent regulation of retail banking was apparent across the Arabian Gulf as regulators tighten lending rules with the aim of protecting consumers, said Sanjay Malhotra, the head of retail banking at National Bank of Kuwait.

Consumer protection is in vogue,” he said. “All of us … have faced regulators with new regulations which restrict demand, cap prices and demand more transparency.”

The UAE’s mortgage law was “a very clear attempt to lower demand”, he said.

Property agents have pointed to a large number of cash buyers in the Dubai market during the first quarter of this year, pointing to demand from wealthy investors rather than prospective homeowners, as property prices rise across the board.

For the first time since mid-2008, all sectors of the Dubai real estate market are positioned in the recovery stage of their market cycle in Q1 2013,” Jones Lang LaSalle said in a research report this week.

But bankers said that with the property market recovering and memories of the property crash fading, buyers should be aware of the possibility of another slump in values.

People have got to remember 2009 and be sensible, and realise that the very same thing can happen again,” Mr Smith said.

Source: The National

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Eshraq to re-start work in The Gateway, 500 flats on Reem Island

FRIDAY 19 APRIL 2013

Abu Dhabi listed Eshraq Properties plans to re-start work on two major schemes in Abu Dhabi this year.

The property developer which floated on the Abu Dhabi Securities Exchange in 2011 said that it planned to start work on its massive The Gateway mixed use scheme of 15 towers and two blocks of serviced apartments on Abu Dhabi island and on up to 500 flats on Reem Island in the last quarter of the year.

Eshraq which recorded losses every quarter since its listing and reported full year losses for 2012 of Dh1.2 million said that it was pressing ahead with the projects in the capital because the Abu Dhabi market was beginning to stabilise.

“We feel it is the right time to build,” said Abdul Fattah Albarghouthi, investment manager at Eshraq on the sidelines of the Cityscape Abu Dhabi property show. “The market is stable and we can see indications that demand is coming back.”

Mr Albarghouthi said that Eshraq’s delayed The Gateway scheme located between the Sheikh Zayed Bridge and the Maqta Bridge next to the new cultural heritage souq announced this week by Abu Dhabi Municipality.

The project, originally intended to be built in 2009, would cost Dh1 billion to develop, Eshraq said. It is likely to include around 1 million square feet of developed area in towers ranging between 15 and 18 storeys. All of the apartments would be leased out to tenants rather than sold.

However, Mr Albarghouthi added that the company is waiting for final approvals from the Department of Transport before finalising its designs.

“We are receiving many offers [to provide development finance] from not only banks but from investors who are ready to inject cash,” he said. “There are investors who would like to put money into our schemes as a sort of joint venture but it’s still in negotiation.”

Eshraq originally owned 21 plots of land on Reem Island but sold 17 of them to sub developers before the financial crisis hit.

The company plans to start work on up to 500 apartments on the island by the end of the year building either one or two residential towers of 250 apartments each. Each Marina Rise tower will cost around Dh250 million to build, Mr Albarghouthi added.

“From an engineering point of view, from a design point of view, everything is ready to start development,” he said. “But the decision of whether to go with two towers together or start with the first one and see what is the reaction, it’s another call. We are not sure whether the market will help us to sell out the two towers. But if we see good demand with the first one then we might go ahead and kick off the second one too.”

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The company is also planning to start work on the first phase of its Jumeirah Rise project of two blocks of apartments and a hotel in Dubai in the third quarter of the year. In total the scheme will cost Dh250 million to develop.

Source: The National

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Investors seek out safe havens across UK

FRIDAY 19 APRIL 2013

Property in the United Kingdom attracted buyers at the Cityscape Abu Dhabi property show yesterday as investors seek out safe havens for their cash.

Exhibitors reported a broadening interest from UAE investors outside the traditional locations of Mayfair and Belgravia to emerging locations in London and elsewhere in the country as property prices in the capital rose to pre-2007 peak levels.

The Irish property company Ballymore, which was exhibiting its Embassy Gardens project in Vauxhall, South London reported “in the region of a couple of hundred registrations” at the event.

Gulf investors will now look outside of the prime areas at places like Canary Wharf which is a trend we have noticed a lot more since the London Olympics,” said Iseeb Rehman, the chief executive of the property broker Sherwoods. “London is as safe as you’re going to get if you’re buying off-plan. It’s not like buying off plan in the UAE and people understand that.”

The broker Chesterton said it had sold six apartments at St George’s Battersea Reach scheme in South London and two more in other Berkeley Group projects in the capital – an improvement on its sales at the same event last year.

We have seen the average value of the units we sell in the Middle East fall from £1.6 million [Dh8.9m] to £1.2 million over the past three years as people from the Middle East start to invest in less prime areas,” Samuel Warren, the managing director for international residential developments at Chesterton told The National.

Companies selling undeveloped plots of greenfield land in the UK at the exhibition also reported strong interest from investors.

David Pollendine, the managing director of Bedfordshire-based Wedgewood Builders and Developers was exhibiting greenfield plots of land in a 4.5 acre field near Hitchin in Hertfordshire. He said his company had received “lots of interest” in undeveloped plots of around 1,300 square feet which it was selling for about £20,000 each.

Herald Land, which was also exhibiting greenfield land plots for between £8,000 and £15,000 in various counties around the UK among its investments, was unwilling to give sales information regarding Cityscape Abu Dhabi. However, the managing director Bob Clarke said that sales had been “better than other exhibitions outside the GCC”.

Greenfield land sales had recently caused much controversy in the UK, where a number of companies have been closed down by the government for selling off protected plots to investors and fraudulently suggesting that the sites could be redeveloped as housing when they could not. In 2011 the number of companies wound down by the Insolvency Service rose to 30 from 15 in 2009.

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Both exhibitors interviewed by The National were quick to point out that they made it clear to investors that the land they sold had no planning consent and therefore could not be developed without a change of planning use.

“Lots of greenfield land is released on a regular basis,” Mr Clarke said. “What we are doing is not illegal and it is not fraudulent. People understand that UK land is a safe investment. You get a title deed. You own a bit of England and can bequeath that to your successors.”

Source: The National

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Tasweek in Dh800m investment

FRIDAY 19 APRIL 2013

The Abu Dhabi-based property vulture fund investor Tasweek plans to invest Dh800 million (US$217.8m) in property in the UAE this year, the company said yesterday.

The private company, set up in 2009 by the former Emaar and Sorouh executive Masood Al Awar to invest in distressed property in Dubai and Abu Dhabi, said it planned to invest Dh300m in purchasing income-producing blocks of flats in Abu Dhabi and another Dh500m in developing a new housing scheme at an undisclosed location in the UAE.

Tasweek, which is owned by 53 Emiratis and operates a $250m property portfolio spread across the UAE, Malaysia and Morocco, announced it was in negotiations to purchase 200 flats in two blocks in Abu Dhabi, one in Sorouh’s Saraya scheme near the Sheraton Hotel on the Corniche and a second on Reem Island.

At Cityscape in Abu Dhabi yesterday, the Tasweek chief executive, Masood Al Awar, said the company was hoping to either list the entire company on the Abu Dhabi Securities Exchange next year or to list its property assets on the exchange as a special-purpose vehicle or Real Estate Investment Trust during this year.

In 2010 we said the market was ‘pretend and extend’, by 2011 it was ‘delay and pray’, 2012 it was ‘surrender and murder’.

But now we see more cash coming in, more liquidity coming into the market. So we thought it is the right time to go to the market with our product. The year of 2013, the two words we use are ‘maintain and sustain’.”

He added that the company was spending Dh500m developing 400 villas in the UAE. He said that at the Cityscape exhibition his company had registered 360 people interested in purchasing.

“We will not disclose the location until we have finished the four show homes in September,” Mr Al Awar said. “Then we will have a sales launch and reveal the location and the international financier behind the scheme and everything. Wherever the location, the villas will be 10 per cent cheaper than Emaar.”

When asked why people were registering to buy property without knowing its location, Mr Al Awar said that people trusted his track record for development.

I sold 1,387 homes in one day at Emaar,” he said. “I sold more than 5,000 homes at Sorouh. People know this and they trust Tasweek. They know we can deliver.”

According to a Tasweek flier distributed at the Cityscape exhibition, the company is advertising 150 square metre two-bedroom villas at a starting price of Dh650,000. A 350 sq metre, five-bedroom villa is advertised at Dh1.3m.

Source: The National

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Abu Dhabi housing demand boosted by decree for employees to live in emirate

FRIDAY 19 APRIL 2013

Demand for housing in the capital is continuing to rise six months after a decree mandating that all government employees live in the emirate of Abu Dhabi.

Residential is starting to pick up," said Talal Al Dhiyebi, the head of portfolio and development management at Aldar.

Our take-up week on week is quite [good]. Our leasing teams are struggling. We need to beef up some of those teams to cater for the ongoing demand."

He said that there had been an increase in rental rates across Aldar's portfolio since the decree was announced last September, particularly in its Al Raha Beach development which includes Al Zeina, Al Muneera and Al Bandar. The decision affects all government bodies.

In the past quarter alone, rates rose 4 to 6 per cent, he added.

When the rental rates go up there is generally a couple of months' lag and then you start to see sales rates go up because the yields are going up. People are much more interested in buying property because they feel there is a stronger rental market and rates are at a very healthy position."

The rental rises are, however, at odds with the general market.

CBRE calculated that housing rents across the city fell 3 per cent to between Dh70,000 (US$19,059) and Dh150,000 a year for a two-bedroom flat during the first three months of the year and look set to sink lower this summer as 17,000 new homes come to the market this year.

I think the rental market is something that we should look very carefully at," said Simon Azzam, the chief executive of Bloom Properties, who was more optimistic about the sector's prospects.

I strongly believe that the rental market will always remain as the strongest market in real estate."

He said sales are also expected to improve this year and going forward, but some companies are already seeing the results.

Tourism Development & Investment Company (TDIC) revealed this week that it sold 30 of the 33 villas it released for sale in the third phase of the Saadiyat Beach Villas scheme on the day it launched.

We have recently witnessed significant growth in the real estate market in Abu Dhabi and in the UAE in general, which is evidence to the return of confidence in the investment sector, supported by the availability of liquidity in the market and the bank's offering of various financing options," said Ahmed Al Fahim, the executive director of marketing, communications, sales and leasing at TDIC.

Source: The National

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Rents in Sharjah soaring by 30 per cent

SUNDAY 21 APRIL 2013

Rents in some parts of Sharjah are soaring by 30 per cent and more as landlords take advantage of increased demand and the absence of a municipality-imposed rent cap.

One tenant, Saeed K, 37, had the rent on his apartment in Al Qassimiya increased from Dh15,000 to Dh20,000.There is no renovation at all but they simply want to increase the rent," he said.

In Al Nabba, letters stuffed under doors in one building told tenants their rent was increasing by 20 per cent. The letter from Al Asima Real Estate said they must pay up, or move out.

The increases are a result of market demand, an agent from Al Asima said. "The real estate market is picking up again. Even the increases we are making this month could be doubled next month because there are more people looking for flats now."

In Dubai, rent increases for existing tenants are governed by a sliding scale, depending on how far the existing rent is below a geographic rent index published by the Real Estate Regulatory Agency.

Rises are capped at between 5 and 20 per cent, depending on how far below market value the property is. In Sharjah, increases simply follow market demand.

Rental laws allow landlords to increase rents in relation to the popularity of the area, after a tenant has been renting for three years.

"We keep an idea what rents in areas are like and expect landlords in areas like Al Nabba not to charge or increase rent to those in Al Khan," said Saleem Al Kaabi, director of the rental disputes section at Sharjah Municipality.

Once a tenant suspects they are being overcharged by the landlord they can always lodge a complaint with us and we will investigate and reconcile the two parties."

While Sharjah is still a relatively cheap place to live compared with other emirates, tenants have recently been asked to pay increases in annual rent of Dh3,000 to Dh4,000.

In traditionally low-cost areas such as Rolla and Butina, the rent on a one-bedroom flat has gone from Dh17,000 to Dh20,000, and a two-bedroom from Dh22,000 to Dh25,000.

In medium-cost areas such as Abu Shagara, Al Nahda and Al Khan, a one-bedroom flat now costs Dh22,000, up from Dh18,000, and a two-bedroom is now about Dh28,000, up from Dh24,000.

One tenant in Al Nabba complained that his property company was putting up the rent for no good reason.

For the past three years I was giving them a commission of Dh1,000. They are not reducing my rent but increasing it from Dh17,000 to Dh20,500 and for what?

They tell us there is an economic recovery and are increasing our rent, but not salaries – that is selfish."

Another resident blamed the rent increases on speculators looking to copy increases in Dubai.

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It's getting more expensive to stay in Sharjah and work in Dubai," said one Al Nabba resident. "You have to pay rent almost the same as that in Dubai and then a higher utility bill and Salik gates to go to work on Sheikh Zayed Road each day."

Mr Al Kaabi said tenants should lodge any complaints with the committee at least 15 days before the end of their contract and pay a Dh500 fee.

He said more than half the complaints the municipality received last year came from landlords against tenants who defaulted on paying rent.

Source: The National

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Dh150 million Dubai Safari to showcase wildlife in natural setting

SATURDAY 20 APRIL 2013

You might be forgiven for thinking that you have entered into foreign waters as you make your way through wadis filled with flamingos and animals running through greenery – this is the new Dubai Zoo.

Known as Dubai Safari, the Dh150 million park project is right on track and senior officials at Dubai Municipality have confirmed that the new Dubai landmark has completed its first phase of construction and, as scheduled, will be completed by the end of 2014.

The municipality has been carrying out excavation work since September 2012 and has been levelling the ground, as well as setting up the areas for internal and external roads. The Dubai Safari project covers 120 hectares that will consist of a zoo, safari and butterfly park, botanical garden, resort, and golf course, in addition to educational and veterinary facilities.

At 29 hectares, the zoo, which is located in Al Warqa area along Al Aweer Road opposite Dragon Mart, will replace the existing 1.5 hectare zoo in Jumeirah. It is expected to feature more than 1,000 animals and birds.

“Within two weeks, we will start carrying out the works for the infrastructure and work on the water feature package. The schedule is going according to plan and will be completed by the end of next year,” said Hussain Nassir Lootah, Director General of Dubai Municipality.

There will initially be 1,600 parking spaces over two designated areas and further down the line, the

“The first phase took time to complete because it used to be a landfill, so we had to clean and level the site. One of the other main challenges was designing the zoo because we had to keep in consideration the summer heat as it can get very hot between the months of May and September,” he said.

Lootah explained that some of the animals need to be kept in a controlled environment, and these buildings would use simple, water-cooled greenhouse technology. The buildings are envisioned to be large structures equipped with an artificial mud pathway with dense vegetation, which would reduce the temperatures for visitors moving between exhibits.

With the advice of a municipal zoologist and international specialists, Dubai Municipality was also able to choose what kind of animals would be chosen to live at Dubai Safari. For the animals’ consideration, the safari park will be closed at night so that they can rest peacefully.

The Safari will be divided into four different sections — African, Asian and Arabian Villages and an open safari — for animals coming from different geographical locations, with architecture and landscaping to match.

“Dubai Safari is a green project, which means that we have made it as sustainable as possible. Water will be the main element of the project, as a wadi and a waterfall will be built, and some of the villages will have boating activities,” he said.

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Lootah pointed out that the municipality has taken power consumption into consideration and will incorporate various methods of energy conservation and energy- efficient designs, including solar power, water recycling, waste disposal and recycling.

“Various types of transport, which will run using solar energy, will be available to take visitors from one place to the other, and there will be a rubber wheeled tram and monorail capsules,” he added.

Source: Gulf News

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Up to 44,000 homes projected to come to market this year in Dubai

SATURDAY 20 APRIL 2013

The Dubai Land Department hasn’t released any figure of expected new units to enter the market this year to date. However, top real estate consultancies in the emirate have put out their estimates, which varies between 12,000 and 44,000 units

In its latest report, Jones Lang LaSalle (JLL), a global real estate consultancy, expects Dubai’s residential housing market to get 28,000 new units in 2013.

“Around 40,000 residential units are scheduled to enter the market over the next two years, which will represent a 11 per cent increase on the current stock,” JLL said in its first quarter 2013 report on Dubai real estate.

Prime projects to be completed this year will be the 29 Boulevard towers in Downtown, Balqis Residencies on The Palm, the Centrium Project in IPMZ and Silicon Gate in Dubai Silicon Oasis.

JLL estimates nearly 2,200 residential units, mostly apartments, were handed over in the first quarter alone.

12,000 units

CB Richard Ellis (CBRE), another international consultancy, in December 2012, said the emirate would witness fresh supply of nearly 36,000 new residential units in the next three years, on an average 12,000 units being completed every year.

“We expect around 36,000 new residential units (apartments and villas) could enter the market during the period 2013 to 2015 provided that construction delays are minimal,” Matthew Green, Head of Research & Consultancy UAE, CBRE Middle East, had said.

CBRE says Dubai’s residential supply witnessed a compound average growth rate of around eight per cent, with apartments increasing by nine per cent and villas by four per cent.

44,400 units

Asteco Property Management, a UAE-based property consultancy, in its second half 2012 report, had put the number at 44,400 units in 2013.

“Assuming construction schedules are adhered to as at the time of inspection, we believe 2013 will see 39,000 apartments, 5,400 villas,” the consultancy said.

JLL says most of the upcoming residential supply will be located outside of central Dubai in areas to the south and east of the city. The largest proportion of future stock from 2013 to 2015 will be delivered in the submarkets of Dubailand (7,900 units); Business Bay (3,800 units); and Dubai Sports City (3,800 units).

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The largest proportion of residential stock added to the market since 2009 is located in International City (14 per cent), followed by Dubai Marina (13 per cent), Discovery Gardens (9 per cent) and JLT (6 per cent), the consultancy said.

Source: Emirates Business 24/7

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Burj Vista units sold from Dh2000psf

SATURDAY 20 APRIL 2013

Dubai-based Emaar Properties on Saturday started selling apartments in Burj Vista, a luxurious twin-tower project in Downtown area, at an average price of Dh2,000 per square feet, property agents told Emirates 24|7.

A company registered agent, who bought a one-bed apartment at around 9.30 am, said: “Since I have bought an apartment at a higher floor; I paid Dh2,055 per square feet. The average price would be in the range of Dh2,000 per square feet.”

He added: “We were told that only 300 to 400 units will be sold today. There are people standing in the office which tokens. Everyone who is going is buying something.”

The twin-tower will be completed in June 2017.The payment terms, that has been offered, is as follows: 15 per cent down payment; 10 per cent in September 2013; 15 per cent in March 2014; 10 per cent each in March and November 2015; 10 per cent in March and 15 per cent in November 2016 and 15 per cent on completion in June 2017.

On Wednesday, Emirates 24/7 reported that the online registration Burj Vista had closed in about 30 minutes.

“Yes, we did manage to register online, but it closed in 30 minutes. Since the registrations were online, we will hopefully not see people queuing up like before,” an Emaar registered agent said on conditions of anonymity.

Located on Mohammed Bin Rashid Boulevard, Burj Vista consists of two identically designed towers, one 20 storey high and the other at 65 storey, with 120 and 520 luxury apartments, respectively.

Other amenities include a fully-equipped gymnasium, children’s play areas, multimedia hall, business centre, play room, lounge areas, swimming pool and kid’s pool, badminton and half a basketball court, relaxing reading areas and lushly landscaped areas.

All the projects - Mira townhouses in Reem; The Address The BLVD; The Address Residence Fountain Views and The Address Residence Sky View in Downtown Dubai - Emaar said have recorded overwhelming response.

Source: Emirates Business 24/7

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Discovery residents seek cards

THURSDAY 18 APRIL 2013

“The premise is under CCTV surveillance. Entry for authorized card holders only.”

Notices stating the above have now been pasted on the main doors and across the buildings in Discovery Gardens, a master community with 291 buildings.

In November, Emirates 24/7 reported that Discovery Gardens will have close circuit televisions (CCTVs) and access control systems by March this year. Nakheel, the master developer of the community, has achieved the task in the mentioned time.

Although close circuit televisions (CCTVs) have been activated, the main doors of the buildings still remain open. Access cards are yet to be issued to residents .

The master developer, however, says owners' associations will have to decide on when they want to activate the systems and issue access cards.

A Nakheel spokesperson told Emirates 24|7: "We are installing the system as per owners' association requirements. It is then the responsibility of the OAs to decide on activation timings."

Amit Mehta, a resident-owner of an apartment, says: “The security in our building has been quite lax… you never find the watchman at the door. It is good to have the CCTVs working, but there is an urgent need to activate the access control systems as early as possible which will make then make the building safe and secure.”

Neil Johnson, another resident-owner, states: “Work on installing the access control system in our building was completed last month. However, we haven’t been informed on when will the access cards will be issued and what the charges will be.”

In some towers in Dubai Marina, OAs charge anywhere between Dh50 and Dh100 for issuing access cards. If cards are lost, the owner has to pay nearly double the amount the cost of the card.

In November 2012, Emirates 24/7 reported that Nakheel Owners' Association Management had issued a notice that said: “In the interest of upholding the property value of individual units and enhancing security and safety to the community, the Owners' Association Management will be installing the following systems with work commencing from October 30: CCTV monitoring system and door access control system.”

The notice added various cameras would be installed in common areas with 24|7 recording and access proximity card controls will be installed on main access doors.

“Once installation is complete, you will be notified to apply and collect access cards. Kindly note that without the access cards, you will not be able to access the building,” it stated.

Discovery Gardens consists of six themed communities inspired by garden living, and includes Zen, Mediterranean, Contemporary, Mogul, Mesoamerican and Cactus courtyard gardens. The development has over 25,000 apartments.

Source: Emirates Business 24/7

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UAE: Buyers eyeing holiday homes in RAK

SATURDAY 20 APRIL 2013

Investor interest in prime holiday homes in Ras Al Khaimah (RAK) has increased recently.

According to Benoy Kurien, general manager of Al Hamra Group, foreign and local investors are seeking to buy in RAK, where properties are quite cheaper compared to Dubai.

Investors can own a studio apartment with full sea view in the emirate for only Dh300,000. More pricey options, such as a luxury beachside five-bedroom villa, can cost up to Dh5 million.

“In recent years, we have seen a significant rise in demand for holiday homes particularly from within the UAE, followed closely by GCC countries,” Kurien told Gulf News.

Al Hamra Real Estate and Development’s flagship master-planned community in RAK, Al Hamra Village, is drawing interest from eager buyers, particularly those looking for quality homes in a family-friendly environment.

However, real estate values in the emirate have also increased. Prices for apartments at Al Hamra Village have gone up by 12 per cent to 14 per cent since last year, while villas and townhouses have increased by 30 to 40 per cent.

Source: Gulf News

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Strong govt spending boosts real estate growth: Cluttons

SATURDAY 20 APRIL 2013

Vigorous government economic and infrastructure spending will continue to spur investment in Oman's real estate sector, real estate specialist Cluttons stated in its Q1 2013 property market report for Oman

The Sultanate's economy continues to perform well and recent government figures indicate that the national GDP grew by 13.2 per cent during the first three quarters of 2012. According to ratings agency Standard and Poor (S&P), the government budget will remain in surplus for the next two years, although it is strongly reliant on sustained oil prices. Fortunately, sector analysts are forecasting that oil prices will remain stable or even show a small increase this year.

Government spending on development and infrastructure projects during the eighth Five Year Plan (2011-015), part of a long-term development strategy set out in the 'Vision 2020, will now amount to RO 16 million compared with the initial projection of RO 12.1 billion. It will include a 45 per cent rise in expenditure on housing, from RO 323 million to RO 469 million during 2013. The economic outlook for the country remains positive but reliant on sustained oil prices and production.

With the economy performing well and evidence of growing market confidence, new Integrated Tourism Complex (ITC) developments are coming to the market as the ITC residential sector shows increasing signs of activity. Q4 2012 saw the launch of Phase 2 of Muscat Hills, which consists of 80 townhouses and villas being sold off-plan, with strong initial purchaser interest.

In addition, 2012 saw the start of preparatory earthworks for the Saraya Bandar Jissah ITC development at Qantab and the successful release of further villas and apartments at The Wave. The increased interest from potential purchasers in the secondary market at Integrated Tourism Complex (ITC) developments, seen by Cluttons residential team in the latter part of 2012, has started to translate into transactions.

Meanwhile the rental market at Muscat Hills and The Wave also continues to strengthen, with evidence of increasing rental values as demand outstrips supply. After several challenging years following the impacts of the global financial crisis, there is evidence of growing strength and confidence in the ITC residential sector which is translating into a significant increase in developments.

The logistics sector remains buoyant with Oman ranked 13th globally in the Emerging Market Logistics Index. The National Railway Company was formed in January 2013 to oversee the development of the National Railway System, which will link into the proposed GCC rail network. It is expected that a Duqm to Salalah link will also be included in Phase 1 of the project and that the railway network will be vital to the development of the ports at Salalah, Duqm and Sohar as regional freight hubs.

Sohar shows on-going development of both its port and warehousing facilities which will aid the projected move of freight traffic from Port Sultan Qaboos to Port of Sohar, while Port of Salalah continues to show strong growth in both general cargo and container volumes.

Demand for warehousing in the rental market remains strong as the industrial sector continues to expand, but the market continues to be significantly under-supplied with suitable facilities. Cluttons

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believes that Oman has the potential to become a prime entry and exit point for goods for the GCC and that this potential is being driven forward by current and projected developments.

The wholesale and retail trade sector is showing a strong recovery following the impacts of the global financial downturn. In addition, the improving economic climate appears to have acted as a spur for further development in the retail sector, with several new retail destinations either recently opened, under construction or at the planning stages.

The Al Khuwair/Bausher area is seeing on-going development of larger scale retail malls in the form of the Lulu extension, the Panorama Mall and the proposed extension of Muscat Grand Mall at the Tilal Complex. Construction of the 10,850 sq m Wave commercial precinct, Marsa Village Retail Centre, started in November 2012 and is expected to be completed in Q2 2014. The recent government decision to increase the minimum salary for Omanis in the private sector by over 60 per cent to RO 325 per month from July 2013 will significantly increase purchasing power in the Sultanate and should help to drive the retail sector forward.

Source: Oman Daily Observer

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Real estate experts expect the housing bubble to burst soon

FRIDAY 19 APRIL 2013

The royal order related to land grants and construction loans will lead to a reduction in the Kingdom's current exorbitant rents and property prices, a spokesman for the Ministry of Housing was quoted as saying in local media. Custodian of the Two Holy Mosques King Abdullah has ordered the Ministry of Municipal and Rural Affairs, municipalities and localities, to hand over all developed pieces of land and plots ready for construction to the Ministry of Housing which will, in turn, distribute them to citizens with loans. Real estate experts say the king's ruling will see a drop in real estate prices. Some expect a huge decline in rents because the land will be available to citizens within a year.

They believe there has been a real estate bubble in the Kingdom, which will soon be deflated by the government's action to either build houses and provide them to citizens at reduced prices, or provide land and construction loans. "The market will sooner or later witness a big decline in prices, since the supply is huge, and could in its first stage satisfy a large part of the demand," said Ibrahim Al-Ubaid, a real estate expert. "Investors are concerned now. They feel that consumers might turn to government projects because of their quality and easy terms of ownership," he added.

"The next step will see a large number of investors compete for the government projects. I expect there will be alliances in the market by a number of contractors to compete for the projects, especially now that we are looking at huge projects that will require a great many contractors and developers," he said. Abdullah Ash Shaiqi, of Ash Shaiqi Real Estate Group, said that after the Housing Ministry becomes the sole agency handling housing issues, he expects a gradual decline in property prices, and as soon as the decision to build materializes, prices will go down "instantly" by about 10 percent.

"There will be a big difference in prices between the commercial supply on the one hand and the government supply on the other," he said. Abdullah Alrobayan, a Saudi columnist, said the Ministry of Housing has no more excuses. "In the past, the ministry used to say that the Ministry of Municipal and Rural Affairs was very slow in handing over land to create housing projects. Now the king has given the Ministry of Housing all the government land and money it needs." Mohammed Al-Dowsari, a real estate developer, told Arab News that the king's decision would have an impact on rented apartments in the medium term. He did not want to pre-judge the overall impact on real estate prices.

"As we know such decisions will take time until they are implemented and there might be some changes in future," he said. Al-Dowsari believes that the Ministry of Housing should not be a regulatory and executive body at the same time. He said that having a real estate commission to regulate and govern the market has now become a necessity. Saudi citizens will benefit from the royal order in less than one year, which is aimed at providing suitable housing units for them, Mohammed Al-Zumai, the ministry spokesman, said. Although the Ministry of Housing has finalized the construction of some housing units, it needs to ensure only deserving people receive the homes, he said.

A total of 1.3 million people have applied to the Real Estate Development Fund (REDF), he said. Al-Zumai said the royal order ensures one ministry is responsible for housing and that citizens are given various options including land, construction loans or housing units. Others will be given the option of working in partnership with private sector firms, which is crucial for the success of the government's housing program. The ministry has worked out a partnership framework with the private sector in this

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regard, he said. Al-Zumai said the ministry has proposed that vacant land be converted into housing at affordable prices.

The ministry has also recommended that new land ownership policies be enacted to ensure more land supply that could curb price hikes and manipulation, he said. The government has already set aside a whopping SR 250 billion to build 500,000 houses across Saudi Arabia. The Housing Ministry will be given a free hand in all matters related to real estate, which will likely create a boom in the construction industry and other ancillary sub-sectors.

Source: Arab News

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The good, the bad and the ugly of UAE real estate in 2012, reports Bayut.com

THURSDAY 18 APRIL 2013

While 2012 was the year of chaos for the Middle East region at large but for the Dubai real estate sector, this year will always be remembered as the year of recovery. The spike in prices, which was previously limited to a select few high-end developments, has begun to surface in some other communities as well. For Abu Dhabi however, 2012 further deepened the divide between prices and rents of high and low end property units. The striking contrast between the performances of the two states has led many people to believe that 2012 told a tale of the two very different cities.

For sale properties in Dubai dominated the year by claiming 76.28% of the total traffic of Bayut.

During 2012, properties in Dubai overshadowed the performance of those in Abu Dhabi. The stats of Bayut.com reveal that Dubai properties for sale claimed the major share of the total search volume on Bayut.com . In January 2012, where Dubai properties attracted 76.28% of the total number of buyers on Bayut.com , Abu Dhabi properties managed to grab hold of a mere 12%.

2012 was overall not so bad a year for Abu Dhabi real estate sector as properties for rent in several of its communities gave Dubai rental properties a tough competition in terms of commanding the attention of visitors at Bayut.com . Of all people looking for rental properties in the UAE in January 2012, 36.46% were interested in Abu Dhabi properties whereas 62.48% were keener to live in Dubai.

Dubai real estate sector is home to a number of high profile projects several of which are steadily recovering from the global economic crunch. Of all its top performing localities, Dubai Marina, Downtown Dubai and Jumeirah Lake Towers (JLT) have performed well throughout the year with an overall increase of 16.58%, 5.82% and 20.73% hikes in rents respectively. The recently released report of Bayut.com paints a favourable picture for Dubai Marina properties. Dubai Marina, which is regarded as one of Dubai's absolute best projects, recorded incredible surges in both its prices and rents.1

As per the statistics of Dubai property portal Bayut.com , all apartment units in Dubai Marina recorded an impressive increase in prices but the highest percentage increase of 25.42% and 19.75% in 2012 was recorded by studio and 4+bedroom apartments respectively. Studio and 1bedroom apartments boast a high demand throughout the year as they make the preferred choice for both locals and expats. On the other hand, the low supply of 4+bedroom apartments is one of the reasons for the increase in their value during 2012.

Similarly, many other communities also reported a healthy upward trend in their prices which show signs of a more widespread recovery. The promising growth recorded in the residential, retail and hotel sector further elevated the hopes of expert who believe that 2014 might be the year of full recovery for Dubai real estate sector.2 The favourable conditions have given Dubai government the confidence to plan and launch an array of new projects worth $900,953m.3 These projects could make Dubai one of the world's top three hot spots for property investment as per Knight Frank.4

According to Jones Lang LaSalle, with such high valued mega projects which are scheduled to start this year, it is explicit that the foundations for a more robust recovery are being laid in the UAE.5 This coupled with the fact that the UAE has been the recipient of $8.2bn of funds from the neighbouring

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states hit by the Arab Spring means that we can expect to see an increase in the economic activity in the UAE where realty markets of both Dubai and Abu Dhabi will benefit from it.6

In contrast with the recovery of Dubai real estate, Abu Dhabi's property market has slowed down where it managed to attract in January 2012, Abu Dhabi rental properties managed to attract 48.5% Bayut.com's total traffic browsing properties for rent in the UAE but in December, this percentage dropped to 36.44%, showing a decline of 33.12%. It appears that this search volume has dropped in favour of Dubai real estate, which now seems more promising to the investors. In order to retain the rental market of the capital, the concerned authorities are in the process of introducing new policies for the expats employed in public sectors.7

Despite the fact that many new projects are just delivered and many are planned for the coming months, the investors do not find Abu Dhabi real estate sector as promising as Dubai's. Some real estate experts believe that Abu Dhabi property market will gain pace once Dubai real estate reaches its saturation point while others believe that it is the oversupply of residential units which adversely affects the property values and rents in Abu Dhabi.8 Nonetheless, with low property rates, Abu Dhabi real estate offers investors a worthwhile investment proposition for the long term.

Al Reem Island and Al Raha Beach are the two notable developments of the capital, which together attracted almost 12% of the total visitors looking to rent property in Abu Dhabi on Bayut.com during 2012. Al Raha Beach emerged as one of the few communities in Abu Dhabi to perform notably well in 2012 in terms of rent. The rents of Al Raha Beach apartments rose by 18% last year. On the other hand the average rent of Al Reem Island apartments fell by 12.16% in 2012. From an investment point of view, because of its sound rental yield as well as capital appreciation, Al Raha Beach looks like a promising option for investors in 2013.

The search trends for Abu Dhabi's sale market once again favour Al Reem Island, where it, as per stats of Bayut.com , is the most searched locations in the capital. Popularity wise, Al Reem Island earned higher ranks on Bayut.com but from an investment point of view, Al Raha Beach project has performed better during the said year. According to the stats collected by Bayut.com , the rate of apartments in Al Raha Beach increased by 17.6% in 2012 while the apartments in Al Reem Island experienced a price hike of only 8.05%. Other than these two projects, Abu Dhabi real estate sector has been unable to record any positive performance during 2012 and depicted a continuous downward trend both in its property prices and rents.

According to the experts at Bayut.com , what Abu Dhabi real estate sector is going through right now is no different than what Dubai experienced eight months ago. Today not only has Dubai's realty market reached a point where many experts believe a full recovery is around the corner but it is also poised to become one of the top three property hotspots in the world.9 By following the example of Dubai and with a bit of luck, Abu Dhabi real estate too can become an investment hotspot of the region.

Source: Press Release

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President's Initiatives Follow-up Committee approves development projects worth AED 800 million

THURSDAY 18 APRIL 2013

Acting upon instructions of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, the President's Initiatives Follow-up Committee has approved a package of key development and housing projects worth AED 800 million for raising the living, economic and social standards of citizens.

The Committee also approved in its meeting yesterday construction of 760 villas for citizens across the emirates.

Ahmed Juma Al Za'abi, Deputy Minister for Presidential Affairs and Chairman of the Committee, said the panel would implement directives given by His Highness General Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, to study eligibility of 622 families for houses. Some of these applications were submitted to Sheikh Mohammed during his tour of the Eastern Coast.

Those villas, he added, would be part of the world-class, fully serviced residential complexes the Committee is currently building in different parts of the country.

The Committee gave its nod for replacing 138 old houses at Massafi, Rahba and Khor Khuwair in Ras Al Khaimah and Diba Laqoub in Fujairah. It also approved replacement of an 132 kilovolt overhead line at Salma in Umm Al Qaiwain with 8.5 kilometre land cables at a total cost of AED 70 million. The Committee also approved awarding the contract for building the AED 15 million autism centre in Umm Al Qaiwain. The project is expected to be completed in 18 months.

Source: WAM

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Abu Dhabi Commercial Properties secures new lease with Carrefour for AD-1 Tower

THURSDAY 18 APRIL 2013

Abu Dhabi Commercial Properties "ADCP" announced today that it has successfully concluded a new lease with one of the region's leading hypermarket chains, Carrefour UAE, which is a joint venture between Majid Al Futtaim and Carrefour France. The grocery chain will soon start to fit-out a new convenience grocery store under their "Carrefour Market" brand at the ADCP developed AD-1 Tower Project which is located in the heart of ADNEC's new Capital Centre master development. The tenure of the lease is for 20 years.

Abdulla Khalifa Al Suwaidi, Managing Director of ADCP commented during Cityscape 2013: "We are delighted to welcome an international grocery chain to AD-1 Tower. Residents at AD-1 Tower will now not only enjoy modern living in the heart of Abu Dhabi but also convenience with the presence of a leading international store.

Noel Roberts, MRICS, Head of Asset Management at ADCP said, "The duration of the lease period agreed with MAF Carrefour surely must be seen by the market as a vote of confidence in both AD-1 Tower itself as a premium built tower and ADNEC's Capital Center as a growing business and residential destination."

Mr Younis Al Mulla, Senior Vice President - Retail Development said, "We are confident that the neighbourhood area and "AD 1 tower " itself is the "good match " with the commercial concept of Carrefour Market . This partnership with ADCB will allow us to provide residents of AD1 Tower with a convenient, value-for-money daily or weekly shopping destination right within the community's retail nerve centre. Residents will now be able to shop a little closer to home, and enjoy exceptional choice, quality and service. Persons working in this business area will be happy to find fresh and competitive solution for snacking, and obviously to make their daily- weekly shopping before coming back home

Carrefour Market , is looking to differentiate itself from other supermarkets in the region by focusing on quality and freshness, proposing an adapted choice to his customers, and all of this at an affordable prices. Produce in-store at the Carrefour Market in AD 1 will centre on fresh, high-quality food products with bread baked in-store, butchers and daily deliveries straight to the supermarket shelves.

AD-1 Tower, situated in the heart of Abu Dhabi's Capital District, AD One Tower houses an exclusive collection of chic Soho-style lofts; one, two and three bedroom apartments; and elegant duplex penthouses, offering residents a stylish, cosmopolitan home in tasteful surroundings there is also 5,000 square meters of retail and commercial space.

Established in 2007, Abu Dhabi Commercial Properties manage in excess of 55 Million square feet of lettable accommodation within the UAE and are one of the MENA region's largest property services companies. ADCP manages a mixed portfolio of property spread across the Emirates. ADCP provides a bespoke professional real estate services to a wide range of private, government and corporate clients.

Source: Press Release

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Construction of Khalifa Bin Zayed Marine Research Center in Umm Al Qaiwain starts

THURSDAY 18 APRIL 2013

Construction works of the Sheikh Khalifa bin Zayed Al Nahyan Marine Research Center in Umm Al Qaiwain was inaugurated today by Dr. Rashid Ahmed bin Fahad, Minister of Environment and Water.

The AED 75 million project was launched in February 2013 by Vice President and Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum upon a grant from President His Highness Sheikh Khalifa bin Zayed Al Nahyan, to contribute to the protection of the UAE's marine environment and fish stocks.

The Center is part of the Ministry's strategy to develop natural resources and contribute to food security through protecting endangered species, supporting their habitat and populations affected by over fishing.

The project features a hatchery facility with a capacity to produce 10 million fingerlings of local and non-indigenous commercial species per year. Laboratories, educational, multi-purpose, administration and accommodation facilities.

It will work on feeding natural reserves along the coastline of the UAE with fingerlings and will support local fisheries, the Minister said in remarks at the ceremony.

The center will develop new technologies of hatching the species originated from local marine environment for sustainable development in Aquaculture and ranching resource to local ecosystem.

It will also enhance research in areas such as aquaculture, oceanography, marine pollution and fisheries.

Source: WAM

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Majaal breaks ground on new construction in Bahrain

WEDNESDAY 17 APRIL 2013

Majaal Warehouse Co., the leading provider of warehousing and industrial facilities for Small to Medium-sized Enterprises (SME's), today held a groundbreaking ceremony at the construction site for the final phase of its initial USD 45 million development at the Bahrain Investment Wharf ( BIW ). The project, designed by Mohamed Salahuddin Consulting Engineering Bureau ( MSCEB ) and being built by Abdulaal Construction Services , is scheduled for completion by the first quarter of year 2014. MSCEB are also providing site supervision services and Baker Wilkins and Smith (BWS) Middle East are appointed to provide cost management services to the project.

Present at the ceremony were Ebrahim Abdulaal Al Fahad, Chairman of ACS; Robert Kirby, General Manager of ACS; Thamer M. Salahuddin, Vice President and Sushil Kher, Executive Director of MSCEB ; Rajadurai T, Senior Quantity Surveyor for BWS; Yasser Abu Lughod, Head of Development and Amin Al Arrayed, Managing Director for Majaal, along with other key members of the project team.

This ceremony follows the signing of a new long-term tenancy agreement with the Abudawood AlSaffar Co. (ASC), the Bahraini distributor for global and regional producers of fast moving consumer good (FMCG) companies such as Procter and Gamble, Clorox International and Campbell's Soup Company. The facility will serve as ASC's new distribution centre, affirming Majaal's position as the preferred provider of industrial facilities in the Kingdom.

The new building represents a quantitative shift for the company. Being significantly larger than the existing structures at Majaal, this facility will offer raised flooring and truck docking bays for easy on and off loading along with higher ceilings for increased storage capacity. The development will span a land area of 252,000 square feet, providing a total leasable area of 145,000 square feet when complete.

Amin Al Arrayed, Managing Director of Majaal commented: "We are very pleased to again appoint Abdulaal Construction Services (ACS), a member of Ebrahim Abdulaal Group of Companies, a well-respected Bahraini firm operating since 1944, to construct these new facilities, in addition to the three buildings presently under construction which are nearing completion. ACS has demonstrated skill, professionalism and reliability in their execution and delivery of the present project. As we sincerely value partnership, we are very pleased to be continuing our relationship with ACS as we proceed together on this new project."

Mr. Ebrahim Abdulaal Alfahad, Chairman of Abdulaal Construction Services (ACS) commented: "We sincerely appreciate the confidence placed in us by Majaal with this appointment, as this will be our second project working together. Clearly we have met their expectations on the first development. We are determined to continue to prove ourselves in delivering another top quality project, within the timeframe and with attention to detail and quality - all deliverables that we are extremely confident of achieving."

Mr. Thamer M. Salahuddin, Vice President of Mohammed Salahuddin Consulting Engineering Bureau ( MSCEB ) also commented: "We are very pleased to be implementing a new and innovative warehouse building design prepared by our team for this Majaal expansion. We are pleased to see the realization of

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the Majaal vision and we will work hard with the team to ensure that the delivered building is everything we have planned for it to be. It is a privilege to be working together with such a professional team."

Majaal is located within the Salman Industrial City at the BIW , providing easy access to Khalifa bin Salman Port and other major transport links in Bahrain. Once this phase is complete, Majaal will offer over 400,000 square feet of secure, flexible and cost effective storage space, more than triple the space currently available.

These small to medium-sized modern and flexible units can accommodate manufacturing, storage and office space within a single unit, making Majaal the ideal facility for start-ups and smaller companies or for existing companies eager to expand. The convenient and high-quality industrial facilities at Majaal are complemented with array of services that include 24 hours a day, seven days a week security, state-of-the-art information communication technology provisions, assistance on efficient design and use of spaces available from as little as 2,700 square feet to as much as 10,700 square feet. All this is in addition to professional facilities management, and onsite forklift rental and logistics support.

Source: Press Release

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Hamptons International launches new London property in the UAE at 'The Collection' with 10% deposit option

WEDNESDAY 17 APRIL 2013

Investors in the UAE can invest in centrally located property in London with the option of a 10% payment now with the rest to be paid on completion of the project at The Collection property exhibition organised by premier residential property agent Hamptons International.

Hamptons is hosting the exclusive two day exhibition of prime UK property in Dubai called 'The Collection,' on April 26 and 27, 2013, at Symphony Ballroom in The Address Downtown Dubai hotel, from 1 pm to 8 pm.

Investors will have the opportunity to make a 10% deposit option on the new properties being showcased by two of the leading developers, Octagon (www.octagon.co.uk/) and A2 Dominion (http://www.a2dominion.co.uk/) with the rest to be paid on completion.

'The Collection' will feature several high-end new build and resale properties, located in prime areas of London and the UK ideal for both buy-to-let investors and owner occupiers and buy to let investors.

A2 Dominion's Wharf Road scheme in Islington will be launched exclusively at 'The Collection' in Dubai before it is released to the rest of the world and offers a selection of high-specification one, two and three-bedroom apartments nestled alongside the Regent's Canal, one of London's true hidden gems with quick and easy access into the Square Mile of the City.

Andrew Phillips, Head of Central London Sales at Hamptons International says: "To launch A2 Dominion's luxury apartment scheme in Islington, Wharf Road, in the Middle East before we release it globally, is a true testament to the growing importance that UK developers place on investors in the Middle East region.

"Islington is an extremely popular area for young professionals looking for a sophisticated neighbourhood and quick transport links into the City. The Collection event offers local investors the chance to reserve these apartments here before anyone else and both developers are offering a rare 10 per cent deposit with 90 per cent paid on completion option."

From a family home new build perspective outside of the Capital, luxury developer Octagon's team of in-house designers and architects have created a magnificent terrace of just nine homes, traditionally built in mellow brick with lavish York stone dressings, each with an integral garage, private rear garden and stunning roof top terrace in the commuter belt area of Windsor. Long Walk Villas' home owners will have privileged views over Crown land from the privacy of their secluded and sheltered top floor terraces.

Andrew added: "Over the last 12 months, we have seen a steady increase in Middle Eastern investment across prime areas of London and the UK. In January this year, Hamptons International experienced a 68 percent increase in website traffic from the UAE when compared with the same time last year."

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Due to the weakening of the British Pound, international investors buying Prime Central London property in Singaporean Dollars will benefit from a 27 percent discount* closely followed by the Malaysian Ringgit at a 23 percent discount. The US Dollar, of which many currencies are pegged to - such as the UAE Dirham and Hong Kong Dollar, offers investors an 18 percent discount.

Andrew said: "With the British Pound weakening we are confident that we'll see an increase in buyers from certain countries that are keen to capitalise on this advantage. Due to current exchange rates and popularity of property in the UK for UAE investors, 'The Collection' event is designed to provide buyers in the Middle East with an opportunity to obtain first-hand insight and advice on where and what to buy in London and the UK."

This year, 'The Collection' will allow interested purchasers the chance to view homes interactively. Bespoke audio and visual property viewing tools will be available to allow buyers to see the key features of each property first hand, and experts from Hamptons International will be available to advise on buying and letting in prime areas of London and the Country.

Hamptons International also offers mortgage advice for potential customers through Capital Private Finance (http://www.cpfhamptons.co.uk/) about borrowing in the UK.

All attendees at The Collection event will also have the opportunity to win a two night stay at The Dorchester Hotel in London - one of the Capital's most prestigious five star hotels. A favourite with celebrities such as Lady Gaga, Tom Cruise and Johnny Depp, The Dorchester is located in the heart of London's Mayfair and a stone's throw from the Hamptons International Mayfair branch.

For further information about 'The Collection' from Hamptons International, please visit www.hamptons.co.uk/the-collection or visit the event at the Symphony Ballroom, The Address Downtown Dubai.

Source: Press Release

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New scheme to protect property rights for Abu Dhabi residents

WEDNESDAY 17 APRIL 2013

Thousands of expats in Abu Dhabi will get the title to their property for the first time under new rules being introduced in the coming months.

Municipality officials said on Tuesday that all owners of freehold property will have to register their plot and will be granted a "deed of title" for the first time.

This new rule will grant official government recognition to thousands of expats who only have their sale contracts to prove ownership.

The proposed changes have taken more than five years to come to fruition and are designed to end disputes between developers and property buyers, as well as between buyers who each claim that they own an apartment or villa.

The rules will affect thousands of expats who own property in the freehold areas of Al Reem, Al Raha Beach and Sowwah Island. Until now, only Emiratis and non-freehold owners have been allowed the title to a property. Freehold was introduced to encourage more expats into the property market and give them greater freedom to buy and sell their property.

Municipality officials gave a presentation on the new rules at Cityscape in the capital on Tuesday.

Source: 7Days

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Grand Heritage to open new hotel in Doha

WEDNESDAY 17 APRIL 2013

Grand Heritage has signed an agreement with Tanmiyat Real Estate and Investment, a venture of Bin Samikh Holding Group, to open a third property in Doha, which is expected to be ready within a year.

John Cullen, president, Grand Heritage International, said yesterday that the decision to run the third property was taken following the remarkable success of their two hotels opened two years ago in Qatar.

Cullen said Grand Heritage Doha Hotel and Spa in the Aspire Zone, has carved a niche for itself as one of the best hotels in Qatar. "The five-star hotel should be one of the best five in its segment without doubt," he said.

Similarly, Governor West Bay Suites has earned a name in the industry in just one year of operation, pointed out Cullen. Both the hotels together have more than 450 top quality rooms and enjoyed enormous patronage in the local market, he added.

The new hotel to be located in West Bay, in the vicinity of the Governor West Bay Suites, is named Grand Heritage West Bay. It would have 319 luxury suites.

"Although the properties under the Grand Heritage umbrella very much belong to one family of hotels, each yet retains a distinct identity of its own. We encourage this individuality because each city or country has its own culture," said Cullen.

Besides Cullen, who has more than three decades of experience at different levels in the industry, Grand Heritage International was also represented by managing director Europe/Middle East and Africa Jean-Patrick Thiry and Governor West Bay corporate director of human resources Magdy Gharib Ali.

Managing Director of Bin Samikh Holding Dr Braik bin Saeed bin Samikh al-Marri and Cullen signed documents.

Cullen said the growing economy, tourism and the opening of the Hamad International Airport would contribute considerably to the development of the hotel industry in Qatar.

Qatar Airways is one of the fastest growing airlines, with excellent connectivity being provided to a large number of new destinations and the passenger flow to the country has been growing at a phenomenal rate.

Cullen said visitors would evince interest to go only to those places which have adequate number of all types of quality hotel rooms. "If the country is expected builds around 90,000 hotel rooms in less than a decade, there is enough reason to expect that there would also be an increasing flow of global tourists," he said.

Cullen also felt that Qatar is emerging as a major business hub with a large number of international brands waiting in the wings to open outlets here. "This is making me a lot more confident than ever before," he said.

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Cullen said professional development and increasing awareness about the hospitality industry at different levels would help the local businesses grow further. "Only professional development could produce better quality managers in the industry and that is what the local businesses need to do at this stage," he added.

Source: Gulf Times

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King orders land and home loans for Saudis

WEDNESDAY 17 APRIL 2013

Custodian of the Two Holy Mosques King Abdullah has issued orders to grant citizens plots of land that have already been developed to build houses, and loans to construct houses on that land. The directive follows an earlier order of the King allocating SR250 billion to build 500,000 housing units for citizens without a home throughout the Kingdom.

Minister of Housing Dr. Showaish Al-Dhuwaihi said that the King's new order shows his keenness to make available adequate housing facilities for citizens.

King Abdullah ordered the Ministry of Municipal and Rural Affairs to immediately hand over all government land designed for housing purposes to the Ministry of Housing.

King Abdullah ordered the Ministry of Finance to sanction necessary funds to implement infrastructure facilities for the land handed over to the Ministry of Housing, which in turn should grant not only developed plots for construction of houses but also loans for the purpose to citizens on the basis of eligibility.

Source: The Saudi Gazette

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Factories outside industrial areas to be shifted

WEDNESDAY 17 APRIL 2013

The government has decided to shift all factories, that are located in residential areas, to specialized zones outside city limits, said Saleh Al-Rasheed, director general of Industrial Cities and Technology Zones (Modon).

"More than 40 percent of these factories are located outside the industrial cities' zone and Modon will coordinate with the Ministry of Municipal and Rural Affairs to address the situation," he added. Modon worked hard over the past years toward developing and expanding the activities of industrial cities to serve the national economy. In 2004 there were 14 industrial cities.

"Today, there are 29 industrial cities across the Kingdom, with an area of 142 million square meters of developed land," he said. Al-Rasheed said that Modon welcomes the establishment of any plant or factory within the space of its borders.

"Cities such as Sadeer, Alkarj, Qassim, Dammam, Hafer Albaten and Jeddah welcome new establishments," he said. More industrial cities will be built in Arar, Tabouk, Hail, Jazan, Asir and Najran.

Source: Arab News

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Abu Dhabi: Mubadala sells 10 plots of land on Al Maryah Island

TUESDAY 16 APRIL 2013

Mubadala Real Estate and Infrastructure announced on Tuesday that it had already sold 10 land plots on Al Maryah Island, formerly known as Sowwah Island, to a Taiwanese firm Farglory Group, local financial institutions including the National Bank of Abu Dhabi and Al Hilal Bank, which will each build its own commercial tower.

“Al Hilal had already started construction and development works and now they have already completed three levels so far while NBAD are at the final designs stage,” Ali Eid Al Mheiri, executive director of Mubadala Real Estate and Investment told Gulf news.

Al Mheiri added that 2013 that will see the opening of financial, leisure and retail assets that complement the commercial space on the island to accommodate more than 10,000 people.

He added that the expansion will provide a world class regional retail destination to include residential and hotel development in line with the master plan of Abu Dhabi vision for the Al Maryah Island.

He did not elaborate on the value of the plots.

He said that the Al Maryah Island is designated to be the new commercial and central business centre for Abu Dhabi.

“Phase 1 of Al Maryah Island’s has been developed to meet the future commercial and business requirements of the capital,” said Al Mheiri.

“Al Sila, the first tower of Sowwah Square, is at 92 per cent occupancy and Al Maqam, tower three, has an occupancy rate of 82 per cent. Towers 2 and 4, Al Sarab and Al Khatem respectfully, were completed in December 2012 and are already receiving strong market interest,” he said.

With regard to tenants on the island, Al Mheiri said: “More than 67 per cent are foreign tenants, 21 per cent are regional and 12 are UAE citizens.”

He stressed that 2013 will witness the opening of the Rosewood Abu Dhabi, a five-star world class hotel, in May 2013 while The Galleria, a luxury shopping and dining destination, will be delivered in August 2013.

Source: Gulf News

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Abu Dhabi's tallest building ready for residents in 2014

TUESDAY 16 APRIL 2013

Abu Dhabi's tallest building will be ready for residents early next year, its developer announced on Monday.

The Residences at World Trade Centre Towers is 382m high and includes 89 floors of apartments. The project is listed as 98 floors because of additional space towards the top of the building. The tower is already well known for its distinctive sloped or "sliced" roof that is visible throughout much of the city.

Completion of the giant construction project will finally reunite Khalifa Street, which has been split in two during the work over the past seven years.

Motorists and pedestrians had long complained that the huge project had divided one of Abu Dhabi's main streets and made entrance into Aldar's Central Market souq extremely difficult. Developer Aldar yesterday said it accepted that the public had been long inconvenienced by the project but said that the combined Central Market mall and souq, which are also part of the development, would make it worth the wait.

The mall will be ready later this year and will also include an eight-screen cinema and more than 20 food outlets. Aldar opened it up to a press tour on Monday to show work is being completed. David Wallace, the mall retail manager, described the mall as the "most masculine shopping experience" in Abu Dhabi, as men would appreciate the wood lattice work and the earthy colours.

He said he hoped that men would join women in shopping there.

Source: 7Days

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Association urges govt to allot land to private developers for affordable flats

TUESDAY 16 APRIL 2013

Oman Real Estate Association, the umbrella body of property developers and real estate management firms, yesterday urged the Ministry of Housing to allot land to private developers to build affordable apartments, in a move to meet the ever-growing demand for housing units in the Sultanate of Oman.

Oman needs at least 25,000 housing units per annum in the coming years, Eng Mohammed Salim Khalifa Al Busaidi, Chairman of Oman Real Estate Association, told Times of Oman on the sidelines of Housing Development Summit here yesterday.

However, according to an estimate, the country may need almost 500,000 housing units in the next ten years.

Affordable prices

"The government can allocate land to private developers on affordable prices or on long-term lease (like integrated tourism projects) for building flats, instead of giving 600 square meter plots to everybody. We have to move from traditional housing concept to flats and apartments," he said, adding: "Land cost is almost 50 per cent of the total cost of building construction. Also, land is not available for development in some key of the areas in Muscat."

"We have already spoken to the Minister of Housing and he was happy with the proposal. I think the government is also thinking on similar lines," Eng Al Busaidi further added.

Eng Al Busaidi, who is also a member of the Majlis As'Shura, said that negotiations between the association and the government are going on. "I hope we can start a pilot project soon," he added.

He said around 30,000 new couples in the Sultanate need housing every year and 60,000 students come out of educational institutions per annum. There is no official statistics on the demand and supply of housing units in Oman, he further sad.

Stressing on the flat concept, Eng Al Busaidi said that it is a better solution for housing shortage rather than allotting plots in remote areas that lack basic amenities. "The potential users can buy apartments with mortgage finance from housing finance institutions. Presently, it is not affordable for young Omanis to buy expensive plots for building houses.

Eng Al Busaidi said the Ministry of Housing and Oman Housing Bank are trying their level best to increase availability of housing units. "I think whatever they provide is very less compared to the demand." The government's recent decision to raise the corpus fund for housing to OMR100 million for another three years is not enough. "There is a long list of 50,000 people waiting for interest-free loan from the Ministry of Housing and Oman Housing Bank has a two year waiting period for getting soft loan," he added.

Eng Al Busaidi also revealed that the Ministry of Housing is planning to shift its loan disbursement for housing through Oman Housing Bank. "Ministry of Housing will not give loans."

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Housing summit

Experts in housing construction and urban development from the government and private sector participated in the third annual Housing Development Summit. Organised by International Quality and Productivity Centre (IQPC) and Global Exhibitions & Conferences LLC (GEC), the two-day event takes place at a time when the Sultanate of Oman is currently expanding its housing and residential infrastructure to meet local demands.

Conference sessions, case studies, panel discussions, construction updates and networking at the summit provided a great opportunity for experts to gain insight into the current and future projects happening in the Sultanate and its housing sector. The two-day presentations and panel discussions cover key topics which included understanding the key success factors for the private sector in developing housing projects; assessing problems facing developers within the affordable housing sector; overview of the current high end residential market in the Sultanate; and latest advances in sustainable building materials and construction methods.

"It is largely felt that this summit is not only timely for Oman itself, but for the entire region which is now on the verge of tremendous reform. The agenda successfully addresses strategies necessary for successful reform; development, legislation and financing. We are very pleased with the way the Housing Summit Oman has been structured and look forward to a fruitful event," according to Fahad Al Ismaily, Executive Director, Tibiaan Properties.

Source: Times of Oman

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Madinah municipality to distribute housing plots

TUESDAY 16 APRIL 2013

The Madinah Municipality will distribute 1,246 plots to citizens before the end of the month, in the second phase of the 4,000 land grant distribution scheme.

The municipality has already granted 1,125 plots in the first phase and has completed the preliminary steps for the distribution of plots in Sowaiderah and Abyar Mashi areas.

The draw for the property schemes will take place from April 26 to April 28 at the Municipal Club on Omar bin Al-Khattab Road opposite the Madinah Television building, from 8 am to 2 pm, said Aed Al-Blaiheshi, the municipality spokesman.

Participants in the draw should bring their national identity card or a valid power of attorney document along with a copy of their identification certificate.

Members of the Land Grant Committee will be drawing on behalf of those who cannot attend the event, the Saudi Press Agency reported.

The municipality has assigned a contractor to undertake asphalting and street lighting for the plots, Al-Blaiheshi added.

The names of those who have been selected for the grant will be announced on the municipality's website, he explained.

Citizens in all provinces are granted plots to build their own houses in an effort to ameliorate the housing problem.

Authorities are striving to resolve the housing problem by providing soft loans and constructing housing units in different regions.

Source: Arab News

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Newly formed OREA to oversee housing sector

MONDAY 15 APRIL 2013

Save as PDF Add to Reading List Muscat - Oman Real Estate Association (OREA), a newly formed organisation for ensuring collaboration and transparency in the real estate sector, will oversee future housing developments in the sultanate.

This was highlighted at the third annual Housing Development Summit which started on Monday at Golden Tulip Hotel.

The two-day summit, organised by International Quality and Productivity Centre (IQPC) and Global Exhibitions and Conferences (GEC) takes place at a time when the sultanate is expanding its housing and residential infrastructure to meet local demand.

Speaking at the event, Eng Mohammed al Busaidi, chairman of OREA, stressed that the association will focus on promoting real estate development and ensuring a uniform and adequate supply of housing for all segments of society.

Giving an overview of Oman's real estate sector, the regulatory framework and key policies governing the sector, Busaidi said, "We are looking to contribute to the development of professional practices and raising the level of transparency in the sector. Success in the real estate sector will only prevail if there is an in-depth understanding of the trends of the real estate market and a real knowledge of the wishes of beneficiaries."

Source: Muscat Daily

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Commercial plots released for sale on Saadiyat

SUNDAY 14 APRIL 2013

Around 38 commercial land plots on Saadiyat Marina District, which makes up the New York University Abu Dhabi (NYUAD) area, will be offered to private investors for sale.

Providing another investment opportunity on Saadiyat, the Tourism Development Investment Company (TDIC) announced the release of commercial plots, the area which by the second quarter of 2014 will be home to NYUAD to meet the needs of the university, students, residents and visitors to the island.

The area will provide different services such as retail outlets, commercial centres, entertainment facilities, educational institutions, hospitality and residential projects, for the university students, who are expected to number around 2,600 on the university’s premises

“The release of these commercial land plots for sale comes following the delivery and opening of number of projects on Saadiyat which have started to shape the island, making it more attractive for interested investors.

We have seen recently that there’s been a significant improvement in Abu Dhabi’s real estate market, which has brought back confidence to the investment sector as well as the fact that several banks are offering various attractive financing options,” said Ahmad Al Fahim, executive director of marketing, communication, sales and leasing at TDIC.

The commercial plots, which range between 2100 and 5100 square metres, have been contracted to Nael and Bin Harmal Hydroexport Limited, one of the leading national contracting companies in the UAE.

Fast track

The infrastructure and utilities work, which includes everything from storm and sanitary sewers to telecommunications duct networks, have already started.

“The release of the plots on Saadiyat Marina District comes in parallel with awarding the infrastructure contract. The work has been put on the fast track to be concluded by the second quarter of 2014,” Al Fahim said.

TDIC has set specific guidelines for investors to ensure the smooth development of the area around the campus.

Nearly eight plots have been sold to investors with their design concepts now being submitted by the developers.

Saadiyat, which is ten minutes away from downtown Abu Dhabi, has not only made a very appealing living address, but it has also become the ultimate tourism hotspot.

The land plots sit in close proximity to the Saadiyat cultural district, which will feature world-class museums. These cultural premier institutions will open on the island starting with the Louvre Abu Dhabi Museum in 2015, Zayed National Museum in 2016 and Guggenheim Abu Dhabi Museum in 2017.

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Source: Gulf News

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Aldar wins deal to build 996 villas in Abu Dhabi

TUESDAY 16 APRIL 2013

Abu Dhabi's Aldar Properties has won a contract to build 996 villas in the UAE capital, the company's chairman said, expecting to see at least 2 percent growth in the emirate's real estate market this year.

Ali Eid al-Muhairi told reporters on the sidelines of Cityscape exhibition on Tuesday that the Abu Dhabi housing Authority has awarded the company a contract to build the villas in Al Falah area of Abu Dhabi, without giving a value for the contract.

Aldar, which in the process of merging with rival Sorouh Real Estate to create a real estate entity with assets of about $13bn, has sold 125 villas in Al Raha beach in the first quarter of the year, he said.

"Aldar is already building 4,857 villas in the area of which 2,079 have been handed over. The 996 will be additional," al-Muhairi said.

He admitted that new stock entering the market will slow down growth in the emirate's real estate sector.

"Home prices in Abu Dhabi will go up 2 to 5 pct by year end," al-Muhairi said.

"I'll be happy to see prices stabilise due to all the new stock coming in. We are not announcing any new projects and will focus on completing existing ones."

Source: Arabian Business

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With 28 years of Middle East experience, Asteco’s Valuation & Advisory Services team brings together a group of the Gulf’s leading real estate experts. Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai, Northern Emirates, Qatar, Jordan and the Kingdom of Saudi Arabia not only provides a deep understanding of the local markets but also enables us to undertake large instructions where we can quickly apply resources to meet clients requirements. Our breadth of experience across all the main property sectors is underpinned by our sales, leasing and investment teams transacting in the market and a wealth of research that supports our decision making.

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