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IN THE MIDDLE EAST FOR 30 YEARS

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

NEWS BRIEF 25 SUNDAY 21 June 2015





REAL ESTATE NEWS UAE

NEW UAE STATE BANK TO PUSH HOUSING, JOB CREATION POLICIES

TURN YOUR UAE PROPERTY INTO HOTTEST ONLINE LISTING: 3 KEY STEP

DUBAI LOWER PRICES, HIGHER YIELDS: RIGHT TIME TO INVEST IN DUBAI

PROPERTY? PROPERTY FLASH SALE… WILL INDIAN EXPATS IN UAE GO FOR IT?

EMIRATI TOURISTS ON THE COMEBACK TRAIL TO EGYPT UK’S AUKETT SWANKE BUYS DUBAI ARCHITECTURE PRACTICE

WORLD’S TALLEST COMMERCIAL TOWER IN DUBAI MOVES STEP CLOSER AS BURJ KHALIFA ARCHITECT APPOINTED

DAMAC OPENS WOMEN-ONLY SALES OFFICE IN DUBAI DANUBE PROPERTIES’ GLITZ 3 DEVELOPMENT LOSES SHEEN AS DUBAI MARKET SLOWS

DUBAI AND ABU DHABI TENANTS LOCKED IN LIMBO AS LANDLORDS SEEK RENT ADVANTAGE

WHERE ABU DHABI AND DUBAI TENANTS CAN GET RENTAL HELP NEW APP LISTS TOP 100 PROPERTY BROKERS IN DUBAI

DIFC AIMS TO MAKE RETAIL STRIP GO-TO DESTINATION DAY AND NIGHT PROPERTIES AROUND METRO STATIONS APPRECIATE UP TO 41%, SAYS

RTA DUBAI REALTY’S SECONDARY MARKET CAUGHT IN A BIND

DUBAI REALTY WEIGHED DOWN BY LUXURY LAUNCHES

ABU DHABI ABU DHABI EXPECTED TO LAUNCH 'RENT INDEX' BY YEAR-END

ABU DHABI’S REEM ISLAND TO BE HOME TO 210,000 RESIDENTS IN NEW MASTER PLAN

ABU DHABI RAISES TOURIST TARGET AFTER INCREASE IN CHINESE AND ‘STAYCATIONERS’

LOUVRE ABU DHABI MOVES CLOSER TO COMPLETION

FUTURE OF REEM ISLAND IN ABU DHABI REVEALED

NORTHERN EMIRATES SHARJAH TARGETS TOURISTS FROM EASTERN AND CENTRAL EUROPE





ABU DHABI’S REEM ISLAND TO BE

HOME TO 210,000 RESIDENTS IN NEW

MASTER PLAN

MONDAY 15 JUNE 2015

Reem Island could eventually be home to up to 10,000 hotel rooms, 210,000 residents and thousands of

office workers.

A new master plan for the 8.5 million square metre island was unveiled by Abu Dhabi’s Urban Planning

Council (UPC) yesterday that sets out development limits for the island.

It states that an expected 1.4 million square metres of office space, 850,000 square metres of retail and

lots of community facilities, including three new hospitals, will be built.

The plan has been created by the island’s three master developers – Tamouh, Reem Investments and

Aldar Properties — which is, in turn, approved by the UPC.

Already, 15 per cent of the buildings covering 20 million square metres at Reem Island are either built

or under way, and there are 20,000 residents.

Tamouh, which is the biggest developer on the island, controlling 57 per cent of the land, has completed

3,500 residential units at its 14-tower Marina Square project.

“As of today, more than 95 per cent of them are occupied,” said managing director Joe Ong, adding that

the community should eventually house 10,000 people. Elsewhere on Reem Island, Tamouh expects to

deliver 4,500 new homes over the next four years at the City of Lights project, where seven of a total of

17 towers are being built. The first, the 56-storey LX Tower office building, has recently been handed

over.

“Probably by the end of the year, two more blocks will be delivered. Our sub developer, Hydra

Properties, will be delivering three more blocks. So we are talking about five more blocks within a year,”

he said, adding that these would comprise 2,000 homes.

Aldar Properties, which controls about 20 per cent of the land, has already built The Gate Towers and

the Sun and Sky Towers at Shams Abu Dhabi on the island. When its new 408-unit Meera Shams Abu

Dhabi and schemes by sub-developers are added, it has about 3,500 units either completed or under

construction.

Reem Investments, which also owns about one fifth of the land, only started on its first project – to build

42 villas – last year.

However, the company’s vice president of strategic development, Saeed Al Yabhouni, said that its

strategy had changed over the past 12 months.

Initially, it planned to just develop infrastructure and sell the plots to third parties, but it started

developing its own land last year.

“There are some other projects coming into the pipeline,” said Mr Al Yabhouni.





“We are going to build another project, which is mainly residential and retail. It will be hopefully by the

end of next year or the first quarter of next year. We are now on detailed design. It will be apartments –

a tower.”

An initial master plan was created for the island ten years ago, when a total investment of over $30bn

was envisaged.

The UPC’s executive director for urban development and Estidama, Mohamed Al Khadar, said the new

plan involves much more collaboration between the parties.

“We are very excited about what this means for the future of Abu Dhabi,” he said.

The three developers now have to submit their own detailed plans to the UPC for approval. Mr Ong said

that Tamouh’s, which is being worked up by Arup, could be ready by August.

Source: The National

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EMIRATI TOURISTS ON THE COMEBACK

TRAIL TO EGYPT

MONDAY 15 JUNE 2015

Tourism from the UAE to Egypt is on the rise as affordability lures holidaymakers.

The number of Emirati tourists grew by 49.8 per cent up to April compared to the same period last year,

according to the Egyptian Tourism Authority (ETA).

The affordability of rooms compared to Dubai and an improving security situation mean tourists are

returning to the country.

ETA also expects to open its Arabian Gulf headquarters in Abu Dhabi in July.

Some hotels in Dubai report feeling the effect of Egypt’s tourism recovery.

“When Egypt was closed, a lot of Saudi tourists used to come to Dubai, now that segment has gone

missing,” said Samir Arora, the general manager of the four-star Ramada Downtown Dubai.

“Egypt is also taking some [of the UAE’s] internal tourists over longer holidays, and it would be

interesting to see how the UAE market reacts to the last 10 days of Ramadan holidays, whether people

would stay here or go overseas.”

Sharjah online travel agent Musafir.com says it has seen a 14 per rise in tourist numbers to Egypt so far

this year compared to a year ago.

“We have seen a slight increase in onward tourism to Egypt from the UAE but the customers are still

apprehensive due to the political situation,” said Raheesh Babu, the general manager at Musafir.com.

“With the stabilised political situation now, we expect to see a hike in tourism after Ramadan, mainly

due to affordable hotel rates, flight connectivity and cultural tourism.”

On The Go Tours in London has seen an increase of between 10 and 20 per cent in Emirati and expat

tourists from the UAE coming to Egypt year on year.

“Emirati families look to give their children a cultural experience, something more than a fantasy world

or a shopping holiday, and holidays are normally a week in length,” said Simone Wilkins-Keshk, the

head of product and operations for On the Go Tours in Cairo.

In April, room rates in Dubai fell 12.8 per cent year on year across four and five-star properties to touch

US$373.78, according to Hotstats data. During the same month, rooms in the Red Sea resort of Sharm

El Sheikh were going for less than $49.

Arabs comprised 17 per cent of the total number of tourists who visited Egypt during the first four

months, compared with 15 per cent in the same period last year.

The number of Saudi and Kuwaiti tourists are also on the rise by 69.9 per cent and 37.1 per cent

respectively during the same period year on year.

Last month the Egyptian tourism agency launched a campaign called Masr Qariba, which means Egypt is

close, to increase Arab tourism to the country, especially from the UAE, Saudi Arabia and Kuwait.


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ABU DHABI RAISES TOURIST TARGET

AFTER INCREASE IN CHINESE AND

‘STAYCATIONERS’

TUESDAY 16 JUNE 2015

Abu Dhabi tourism chiefs have raised their annual visitor target by more than 11 per cent to 3.9 million

after a sharp rise in the number of Chinese arrivals and “staycationers” from other emirates.

Guest arrivals increased 20 per cent in the first four months of the year according to the Abu Dhabi

Tourism and Culture Authority (TCA Abu Dhabi).

About 1.3 million guests checked into the emirate’s 161 hotels and hotel apartments over the period, it

said.

They stayed for 2.84 nights on average, a rise of 11 per cent year on year. The previous target of 3.5

million guests was announced earlier this year.

Domestic tourism accounted for the biggest share with 44 per cent of the total. Guests from other

emirates stayed for an average of 2.27 nights, a rise of 20 per cent year on year.

Hotel occupancy was at 79 per cent, and revenues grew 12 per cent to Dh2.431 billion. Room revenues

increased by 16 per cent, while food and beverage sales grew by 3 per cent.

The largest source markets were the UK, India, China, Germany and the US.

Arrivals from the UK gained 17 per cent to 80,673, followed by India, which recorded 16 per cent growth

to account for 79,793 guests. Visitors from China surged 75 per cent to 79,713.

About 23 hotels, attractions and shopping malls signed up for the Welcome Chinese programme in

partnership with China Tourism Academy in February. The programme is expected to promote

attractions in the capital to Chinese tourists.

The tourism agency also expects growth from the US market this year following an increase in airline

capacity pre-entry customs clearance, and greater destination awareness after Hollywood films such as

the latest Fast and Furious and Star Wars franchises. The US accounted for 55,570 tourists, representing

an increase of 34 per cent from a year earlier.

Passengers on Etihad flights to the US, which include Chicago, Dallas-Fort Worth, Los Angeles, San

Francisco, New York JFK, and Washington DC, are processed for US customs in Abu Dhabi.

In April, Abu Dhabi airport reported 1.87 million passengers, up by 15.5 per cent year on year, as Etihad

and its partner airlines launched new routes across the globe. The top five destinations from the airport

were London Heathrow, Bangkok, Manila, Doha and Mumbai.


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UK’S AUKETT SWANKE BUYS DUBAI

ARCHITECTURE PRACTICE


UK architecture firm Aukett Swanke Group has bought Dubai-based Peer John R Harris & Partners

(JRHP) in a deal that it says will allow it to bid for more Middle East work.

It has paid £897,000 (Dh5.1m) for an 80 per cent stake in JRHP, with the remaining 20 per cent being

retained by two current JRHP directors, who will remain with the firm. The vendors, who were not

employees, have now left the business.

Aukett Swanke will add JRHP’s 27 staff to its existing offices in Dubai and Abu Dhabi, taking its total

employee numbers of over 370.

In a statement, Aukett Swanke said it has “recognised for some time that its existing operation in the

Middle East has lacked the critical mass to successfully bid for some of the larger and more prestigious

projects”.

It added that JRHP made a pre-tax profit of £182,000 on revenue of £2.6 million last year. Aukett

Swanke has just posted half-year results to March 31 showing a 21 per cent rise in sales to £9.2m and a

9 per cent climb in pre-tax profit to £815,000, although increased staff costs in the Middle East led to it

making a small operating loss in the region.

Chief executive Nicholas Thompson said the Middle East is “the current focus of our expansion plans”.

“We have been seeking to augment our Middle East offering for some time and are delighted that we

have been able to secure a major shareholding in JRHP. Its rich history, coupled with our own, make for

a robust platform in both our scale of operation and design skill from which we can continue our

expansion plans for the region.”


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WORLD’S TALLEST COMMERCIAL

TOWER IN DUBAI MOVES STEP CLOSER

AS BURJ KHALIFA ARCHITECT

APPOINTED


Tall buildings specialist Adrian Smith + Gordon Gill Architecture (AS + GG) has been chosen by the

master developer of Dubai’s Jumeirah Lakes Towers (JLT) district to design the Burj 2020 tower - set to

be the world’s tallest commercial tower.

AS + GG has also designed Saudi Arabia’s Kingdom Tower - the 1km-high tower being built by Jeddah

Economic Company that is set to be the world’s tallest when it completes in 2019.

Its founders also worked on the design of Dubai’s Burj Khalifa while based at Chicago practice Skidmore

Owings + Merrill.

JLT’s master developer, DMCC, has also appointed WATG to create the master plan for the surrounding

Burj 2020 district. It has worked on projects including The Atlantis The Palm and Abu Dhabi’s Emirates

Palace, as well as the Grand Hyatt in Kuala Lumpur.

“AS + GG and WATG come with a wealth of global destination and tower design expertise,” said DMCC

executive chairman Ahmed Bin Sulayem.

“Designing a world-class destination of this scale will set new levels of efficiency and urban sustainability

and we are confident that our partners, in delivering the Burj 2020 District and tower, will create a new

address for the global business community of the future, right here in Dubai.”

WATG’s master plan for the surrounding district will encompass around 1.3 million square metres of

buildings, including commercial, retail and hotel space.

DMCC has previously said that a 360-degree observation deck at the top of the Burj 2020 is planned,

making it the highest observation deck in the world.

The Council for Tall Buildings and Urban Habitat ranks New York’s One World Trade Center as the

world’s tallest commercial tower, at 541 metres. The height of Burj 2020 is yet to be revealed.


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DAMAC OPENS WOMEN-ONLY SALES

OFFICE IN DUBAI


Damac Properties has announced the launch of its first women-only sales office in Dubai, which it says is

in response to an increasing number of female buyers.

The office, Morjana, is located close to The Dubai Mall.

The developer said it will be staffed by 25 employees, all of whom are fluent in Arabic.

“We have seen a significant increase in the number of women looking to invest in the Dubai property

market, and it was a natural progression to open an all-female office,” said managing director Ziad El

Chaar. “We have created a comfortable environment where our potential buyers can learn more about

our luxury real estate portfolio.”

The office will open at the end of this month.

“It is important for us to be at the forefront of new ideas and innovation and we expect this all-ladies

office to be well received,” Mr El Chaar said.

Dubai Land Department figures reported last month stated that more than 2,400 female buyers spent

over Dh5.8 billion on property in the first five months of this year.


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DANUBE PROPERTIES’ GLITZ 3

DEVELOPMENT LOSES SHEEN AS DUBAI

MARKET SLOWS


The billboards have been plastered all over Dubai once more for Danube Properties’ latest launch, Glitz

3, and plenty of airtime has been booked on local radio stations targeting expat buyers.

Yet the developer’s third project within a year has not experienced the same frantic rush of buyers as its

previous two launches.

Glitz 3, a development of 352 apartments housed in two towers at Dubai’s Studio City, held its Dubai

sales launch last Friday and a second event at Abu Dhabi on Monday.

The developer’s first two launches, the 171-town house Dreamz by Danube and the 292-unit Glitz 1 and

2 towers, both sold out within hours of their launches.

Danube’s founder and chairman Rizwan Sajan said that the market “is a little slow, to be honest”.

“Glitz 3 is slower than 1 and 2, but nevertheless we are much better off than other private developers,”

he said.

Danube Properties still managed to sell 200-plus units at Glitz 3’s Dubai launch, but has more than 100

remaining.

The project is on the same Dubai Studio City plot as the first two towers and prices range from

Dh475,000 for a studio to Dh1.2 million for a three-bed apartment.

It is an area where competition at the affordable end of the market is heating up.

The nearby Nshama Town Square project is offering studios from Dh349,998. Dubai Investments has

said that more than 1,150 units are currently under construction at the Dubai Investment Park farther

along Mohammed bin Zayed Road.

Affordable homes are also set to be a key feature of the Dubai World Central site’s residential zone,

where Mag Property Development and MBM Holding last month launched the Dh700 million Mag 5

Boulevard project.

Mr Sajan pointed to the larger inventory at the Glitz3 site as one reason why it has not sold as quickly,

but said he remains confident that it will, citing his firm’s track record and reputation in the market.

Danube Properties has sold Dh1.2 billion worth of properties since its launch a year ago, but Mr Sajan’s

building materials business has been operating in the UAE for more than 20 years.

“So people have that trust and confidence that [we] are here to stay, and not just start a project and

cash out.”

He added that the firm’s expertise in building materials and its knowledge of local contracting and

architecture firms meant it had an advantage over competitors. “When we have to give a contract, we

know who is a good contractor and who is bad.”





He expects to appoint a main contractor for Glitz 1 and 2 within the next month, and for Glitz 3 shortly

after. All of the Glitz towers should complete by the end of 2017, he said.

Mr Sajan plans to move on to find a site for the company’s fourth project soon.

“I am now looking at another plot, with different developers. Before the year-end, I will hopefully come

out with a new launch.”

MPM Properties, the real estate advisory arm of Abu Dhabi Islamic Bank, reported a 4.1 per cent decline

in sale prices in Dubai during the first quarter of this year. It added that an expected glut of new

properties coming on to the market in 2015 meant that home buyers were now in a much stronger

bargaining position.

“The amount of new projects in the Dubai market means properties will increasingly need to appeal to

potential buyers’ sense of value,” said the chief executive Paul Maisfield.

“That means a shift towards more affordable properties, particularly close to the Expo 2020 site, and an

emphasis on incentives.”


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SHARJAH TARGETS TOURISTS FROM

EASTERN AND CENTRAL EUROPE

WEDNESDAY 17 MAY 2015

Sharjah is targeting tourists from central and Eastern Europe amid improving air links.

From June 7 to 12, the Sharjah Commerce and Tourism Development Authority held roadshows in

Bulgaria, the Czech Republic and Poland.

The move comes as UAE travel operators, including hotels and tour agencies, explore new markets to

make up for the decline in Russian tourists.

Hotels in the Northern Emirates have been a big draw for Russian guests.

“We are missing the Russian guests but we are exploring Central Asia, Czech Republic and Poland since

last September and getting good results,” said Iftikhar Hamdani, the cluster general manager at

Ramada Hotel and Suites Ajman and Ramada Beach Hotel Ajman. “Now, we are looking at Romania,

Bulgaria and Hungary and to attract more sports clubs from east Europe.”

Tourist arrivals from Russia and CIS countries at Dubai International Airport fell during the first quarter

with the declining rouble and low oil prices.

According to the latest data available from March, the number of passengers at Dubai International

Airport dropped 31.7 per cent from the same period last year.

Sharjah expects to attract 10 million tourists by 2021, focusing on family tourism. Europe is one of its

major source markets.

The European tour followed the April roadshows in Kuwait and Saudi Arabia.

The agency is due to visit more countries in the Arabian Gulf region in the next half of the year.


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LOUVRE ABU DHABI MOVES CLOSER TO

COMPLETION

THURSDAY 18 JUNE 2015

Construction work on the Louvre Abu Dhabi is progressing as scheduled, according to the developer

behind the museum.

The Tourism Development & Investment Company (TDIC) chairman Ali Al Mansoori says he is pleased

with the progress being made at the museum following an inspection at the site.

Mr Al Mansoori was given a tour to oversee the project alongside the Arabtec chairman Mohamed Al

Rumaithi. Arabtec is leading a consortium that is building the museum under a $653 million contract

awarded early in 2013.

The museum is due for completion by the end of the year.

Arabtec is building the Louvre Abu Dhabi alongside its joint venture partners Constructora San Jose and

Oger Abu Dhabi. It is one of three museums planned for Saadiyat Island designed by “starchitects”, with

the others being Sir Norman Foster’s Zayed National Museum and Frank Gehry’s Guggenheim Abu

Dhabi.

Mr Al Mansoori and Mr Al Rumaithi inspected advanced cladding work that has been taking place in

recent months. There are 4,680 pieces being fitted – 3,821 of which are unique in shape and size.

These will help to contribute to the “rain of light” effect coming into the building from its huge main

dome – part of a design by the French architecture firm Ateliers Jean Nouvel.

“Louvre Abu Dhabi’s unique architecture sets it apart, and with interest growing daily for this world-class

cultural institution, the museum will strengthen Abu Dhabi’s drive to become a global destination of

choice once it officially opens to the public,“ Mr Al Mansoori said.


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DUBAI AND ABU DHABI TENANTS

LOCKED IN LIMBO AS LANDLORDS

SEEK RENT ADVANTAGE

FRIDAY 19 JUNE 2015

Tulika Srivastava cannot prove it but she suspects her landlord is being vindictive by serving her family

a notice to vacate.

It all started last year, shortly before the contract on her apartment in Jumeirah Lakes Towers was up.

“With one-and-a-half months left on the tenancy, we said ‘we have to go on holiday so can you please

tell us when we have to renew the contract’,” she recalls.

The landlord wanted to increase the rent, but by Dubai law, he had to give 90 days’ notice – so Ms

Srivastava, 30, from India, refused to pay the rise.

“They said: ‘we will go to court’, and we said: ‘OK, go’. Later they agreed on the same rent, but they

realised we knew all the rules and gave us a notice. They say they want to sell just because we didn’t

agree to their rent.”

Ms Srivastava’s situation is not unusual.

After years of skyrocketing rises, the UAE’s rental market is finally slowing, with an increase of just 4

per cent in Abu Dhabi in the first quarter, and unchanged in Dubai in the same period, according to the

property firm JLL.

However, many residents claim their landlords continue to seek unfair rises, conditions or changes to

their contracts.

“Most will try to get the best rental income they possibly can, but where a lot of landlords fall down is

that they are either ignorant of the law or they know the law and still try to buck the system. That’s

when tenants should take the matter further,” says Mario Volpi, the managing director at Ocean View

Real Estate and The National’s Homefront columnist.

In the past tenants would do as they were told because they were ignorant of the law, but now they are

more informed, adds Mr Volpi.

“There are still tenants who will walk away and then there are those who say ‘no I have rights, I am

going to fight’,” he adds.

That is what the American Mohammed Mansour, who asked for his name to be changed, decided to do.

Mr Mansour’s problems began a year after he moved into a house off Al Manara Road in Dubai in 2012.

The market was pretty low at the time, so he negotiated a deal of Dh125,000 in one cheque for a three-

bedroom town house. When the second year rolled around, his landlord demanded a 25 per cent rise –

which is too high according to the Rera rent calculator.

Mr Mansour, 38, who is a landlord himself, refused to pay the increase, sticking with Rera’s increase,

according to the law.





“He kept calling and threatening. He sent people round to my place saying they were going to cut off my

electricity,” says Mr Mansour, a UAE resident for 10 years, who paid Dh125,000 again, a figure his

landlord eventually accepted.

The next year his landlord demanded a 25 per cent rise once more. Again, Mr Mansour refused, a

position he also adopted this year when his landlord demanded a 40 per cent rise.

“I said I am not going to do it.” He kept sending the maintenance guy every day and I said ‘stop coming

to my house, his cheque is ready if you want to pick it up’.”

Eventually the landlord’s maintenance man picked up the cheque and promised to come back with the

contract, but has not so far.

For now Mr Mansour has won, but the process has taken a heavy toll on him personally.

“It’s been stressful. It’s been inappropriate. I have to admit it has kept me up a couple of nights,” he

says, adding that despite this, he wants to stay in the property – the house is central and near a park,

schools, a mosque and within a 10-minute drive of his work.

He has decided against raising the case with Dubai’s Rent Disputes Settlement Centre because of the

cost and time it would involve. Estate agents say UAE residents often avoid such centres, which exist in

both Abu Dhabi and Dubai, because of the “hassle factor”.

In Dubai, by law each party must give at least 90 days’ notice before the expiry of the contract to

communicate any changes. In Abu Dhabi, the landlord can make any changes if mutually agreed, at any

time he or she likes, as long as they give two months’ notice. Any rise in rent will not, however, apply

until after the expiry date on the current contract.

In Dubai, rental increases are calculated using a sum which involves the average rent in the index.

However, in Abu Dhabi there is no such restriction. The emirate removed a 5 per cent rent cap in late

2013, meaning if landlords want to impose a rise of 50 per cent, they can.

“The big thing that people always complain about is their landlord giving them less notice for a rent

hike,” says Ben Crompton, who runs the Abu Dhabi branch of Crompton Partners.

“Often landlords don’t give the requisite notice and then try to raise the rent after that.”

A new real estate law was announced for Abu Dhabi this month, but the text has yet to emerge, so it is

unclear if a rent cap or a rental index similar to Dubai will be introduced.

“Rent has been floated at market rates, as in most countries in the rest of the world,” says Mr

Crompton.

“Now we are seeing more sustainable rent increases, still high but more sustainable. It’s likely the

government will introduce some kind of regulation, but actually the best regulation is just to release

more units on to the market and have rent lowered for everyone. At the moment we don’t have enough

supply.”

Rent increases are not the only problem tenants face in the capital.

Jacob Coetzee, whose name has been changed, and his wife were forced to leave their Khalifa City A

property just six weeks into the contract when the landlord cut off the power supply. The South African,

a UAE resident for seven years, paid six months’ rent upfront at a cost of Dh50,000.

“They started asking my wife for money to reconnect the electricity, which is outside the bounds of my

contract,” he says.

He refused to pay and toughed it out for a month living by candlelight before moving out. He has been

trying to get his money back ever since.





“As in the rest of the world, the landlord has all the power and it is made worse here by the fact you pay

a lot of rent up front,” says Mr Crompton. “The landlord holds your money and you don’t really have the

option to hold back rent where repairs or your needs aren’t being addressed.”

Ms Srivastava knows this only too well.

All she can do is sit and wait for her landlord’s next move as the property has received no viewings from

potential buyers.

“We don’t want to move but we are helpless now,” she says.

When the renters turn rogue

Landlords may hold more power but they also experience problems. Amir Ahmed, a UK investor who

requested his name be changed, rented out his property in Jumeirah Lakes Towers two years ago to an

employee of a real estate company.

The tenant asked for the name on the lease to be transferred to his company and not foreseeing any

problems, Mr Ahmed agreed. However, the tenant later left the country and the lease remained in the

name of the company, which moved another employee in. “The following year I told them I wanted the

property back. They said: ‘Well, you have no right’. I said ‘OK if I don’t have rights can I at least know

who I am talking to? They have never given me a name, I only get company signatures,” says Mr

Ahmed. “It is like a sitting tenant now because I can’t get rid of them.” The landlord has good reason to

want a new tenant. The rent the company pays is far cheaper than the average cost of apartments in

the area, plus no rent has been paid this year and the contract is almost up. The company deposited the

cheque with Rera and it was found only after the cheque expired. Mr Ahmed has served the company

with a notice to vacate by August and hopes the tenant will comply. “They are rogue people who are

taking advantage of the law. It is giving Dubai a bad name,” he says. “They knew what they were

doing.”


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WHERE ABU DHABI AND DUBAI

TENANTS CAN GET RENTAL HELP

FRIDAY 19 JUNE 2015

There are avenues for redress for tenants and landlords in Dubai and Abu Dhabi.

In Abu Dhabi, complaints are handled by the Rent Dispute Settlement Committee. Complainants must

fill out an application form and submit the original petition plus two additional copies, as well as copies

of the rental contract, passport and the trade licence or power of attorney if appropriate at the customer

service desk.

In addition, they must pay a fee of 4 per cent of the rent contract value, capped at Dh20,000 in the first

instance (and at Dh10,000 at appeal).

After that they will receive a date for the first case session.

In Dubai, people can contact the Rent Dispute Settlement Centre. Those hoping to open a case must file

supporting documents, including emails between the tenant and landlord, plus copies of the tenant’s

passport, Emirates ID, Ejari certificate, the original tenancy contract, a passport copy of the landlord, a

Dewa bill and title deeds, in addition to copies of any cheques that were issued.

The Rent Disputes Settlement Centre form must be typed and non-Arabic documents must be legally

translated into Arabic.

You can then file a case and pay the fee, which is 3.5 per cent of the annual rent up to a maximum of

Dh20,000. Most cases are judged within 75 days.


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NEW APP LISTS TOP 100 PROPERTY

BROKERS IN DUBAI

SATURDAY 20 JUNE 2015

The Dubai property watchdog has for the first time ranked the top brokers working in the emirate in a

bid to boost transparency and prevent fraud.

It means that buyers and sellers of property can check that property brokers are registered, as well as

how many deals they have closed.

The Dubai Land Department (DLD) yesterday revealed details of a newapp that provides details of all

registered property brokers working in the emirate.

Dubai Brokers can be downloaded both through Apple’s App Store and Google’s Play Store.

It is aimed at providing greater transparency and preventing potential fraud.

The DLD’s director-general, Sultan bin Mejren, said that brokers were an important link between

property buyers and developers. The new app not only provides confirmation of their status, but also

ranks the top 100 brokers, although this is based on the number of transactions rather than user

ratings.

There are currently 1,050 brokerage firms registered with Dubai’s Real Estate Regulatory Agency (Rera)

and 2,154 individuals.

The top-ranked broker was Heather Tait of Espace Real Estate, who has completed 242 deals since she

was initially registered as a broker with the Dubai Land Department in September 2009.

“The department has made unremitting efforts over the past few years to provide a lot of smart services

that aims to alleviate the burden on dealers to carry out a broad spectrum of transactions,” Mr bin

Mejren said.

A spokesperson for the department added that the aim of the app was to help people easily identify

legitimate brokers, as well as check if their licence to practice was up to date.

Since last year, any broker seeking to renew his or her licence has had to pass a test. It also cancels

licences of any agents who go more than six months over the renewal date.

In the past, people posing as brokers have taken cheques from clients who thought they were paying to

buy or rent a property, only to later find that they were victims of a scam. In August 2012, the chief

executive of the agency Shamyana Entertainment Services fled the country with about Dh6 million in

cheques that were paid to him by tenants to cover rents but these were not passed on to property

owners.


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DIFC AIMS TO MAKE RETAIL STRIP GO-

TO DESTINATION DAY AND NIGHT

THURSDAY 18 JUNE 2015

Dubai’s financial free zone expects to attract thousands of residents as it revives its retail offerings to

make the precinct a round-the-clock destination.

Currently about 5,000 people live in the Dubai International Financial Centre (DIFC) free zone across

four towers.

With the new Central Park building comprising 426 apartments complete, the developers Dubai

Properties Group and Deyaar are handing over the apartments to new residents. Like other global

financial centres, footfall tapers off at DIFC’s retail outlets after office hours.

In a bid to reverse that trend and encourage people to stay longer it plans to develop an interconnecting

retail “spine” across its buildings that would feature cafes and outdoor spaces with seating areas.

The district has 1,224 companies and 18,000 employees, figures it expects to triple by 2024.

“Malls in Dubai get busy at night and on weekends,” said Brett Schafer, the chief executive of DIFC

Properties.

“But our retail spine [would be] busy during night and day because we have people living here, and like

a downtown, a high traffic area, it would have amenities so that people can remain.”

DIFC has one more residential tower planned with 170 apartments in the next few years besides a few

more in the long term, he said.

Construction is yet to start on the latest residential building.

“We expect around 50,000 people living here by 2020,” Mr Schafer said.

“So the retail spine is important timing-wise, and it would also cater to the residential towers on Sheikh

Zayed Road.”

The construction of the strip fell by the wayside during the 2008 financial crisis but picked up as the

office spaces and residential buildings started filling up.

Designed as a promenade, it has 150 retail outlets lined up. It would start leasing from November, and

is expected to be ready by the second quarter of 2017.

Richard Paul, UAE head of residential valuations, Cluttons, said DIFC’s free zone status and its legal

system means that it attracts “the cream of the crop”.

“Office space [at DIFC] is hugely in demand and rates are much higher than anywhere else in the city.

“There is clearly latent demand. There are plans to double the size of office space and they will be taken

up.

“That will bring thousands of people who will be paid well and looking for places to live,” he said.

A wave of new office and residential development is underway at DIFC as the free zone approaches full

occupancy.





Gate Village 11 with 200,000 square feet of new office space is expected to be complete in the second

quarter of 2017.

The Investment Corporation of Dubai (ICD) and Canadian property manager Brookfield are building a $1

billion development in the financial district.

The ICD Brookfield Place, which would have 1.5 sq ft of office space, retail outlets and a hotel, is

expected to be ready by the second quarter of 2018.

DIFC office rents are among the highest in Dubai at Dh2,530 per sq metre at the end of the first

quarter, according to the property brokers Knight Frank.

It is followed by Emaar Square and the Downtown area at Dh1,991 per sq metre.


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PROPERTIES AROUND METRO

STATIONS APPRECIATE UP TO 41%,

SAYS RTA

WEDNESDAY 17 JUNE 2015

The value of properties located within a 1.5km radius of Metro stations on the Red and Green lines has

appreciated by between 13 per cent and 41 per cent, the Roads and Transport Authority ( RTA ) said on

Wednesday.

“The rental and sale value of properties in the vicinity of the Metro lines has appreciated by up to 10 per

cent, which indicates the huge impact of the Dubai Metro on boosting the market value of properties,”

said Mattar Al Tayer, Executive Director and Chairman of the Board of Directors of RTA .

He said Dubai Metro has vitalised the areas it passes through and has proved to be a critical link to the

key landmarks for people.

“Metro has brought down the cost of commuting for people living in the vicinity of the two lines by 300

per cent,” he added.

Al Tayer noted that RTA has been keen on linking vital facilities and densely populated property projects

with mass transit means in keeping with its mission of developing integrated and sustainable mass

transit systems for a specific demography in Dubai.

“An example of vital facilities linked with the Dubai Metro is the Burj Khalifa Metro station which was

visited by 6.6 million riders in 2014, and the air-conditioned footbridge linking the station with Dubai

Mall has increased the number of riders by 59 per cent compared with the previous year,” Al Tayer

revealed.

Since the opening of the footbridge, the station has seen an increase in footfall by 35 per cent annually.

Similarly, the Mall of the Emirates station saw 5.8 million visitors last year, recording a rise in the

number of riders by 12 per cent.

He added that the Dubai Metro has helped save Dh87 billion in the last five years by reducing fuel

consumption and bringing a drastic cut in commuting time.

He also revealed that the mass transit system has helped cut 58 per cent of the CO2 emitted by private

vehicles.

Source: The Gulf News

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DUBAI REALTY’S SECONDARY MARKET

CAUGHT IN A BIND


Secondary market sales of ready properties have been on a steep decline in the year-to-date as

property buyers took their pick from the flood of off-plan launches that took place simultaneously. And

not just that off-plan prices have started to get quite competitive vis-a-vis those tagged to properties in

the secondary market.

“Master-developers have had multiple launches within the same cluster in the last three quarters, but

some of the recent ones have been at prices below what they were charging in the fourth quarter of

2014,” said Sameer Lakhani, Managing Director at Global Capital Partners. “This trend has been

noticeable even at some of the most prestigious locations — a launch late last year in Downtown was at

Dh2,100 a square foot. The most recent one at the same location from the same developer was for

around Dh1,800.

“The trend of prices drifting lower may finally trigger the beginning of the shift of the market from being

investor-driven (70-75 per cent of overall purchases) to that of an end-user one. This will signal happy

tidings for end users as it allows them to consider purchasing homes at more affordable rates.”

Clearly, developers, especially the big ones, have been quick to adjust their launch prices to be in step

with investor sentiments in a soft marketplace. Meanwhile, another set of developers, such as Nshama

and MAG Properties, have come in with off-plans targeted at a more budget-conscious buyer.

What all of this has led to is catch the secondary market in a vice-like grip. Much of the liquidity has

been sucked up by the off-plan leaving little for the secondary. In the last three years, an estimated

75,000-100,000 units have been added to the supply via off-plan releases. The second-half of the year

looks certain to be just as active, as developers with off-plan forays will try and leverage their current

advantage vis-a-vis secondary market.

Shift in preferences

Also, secondary market values suddenly find themselves as being pricier than the recent off-plan

releases. In fact some would suggest that secondary values are still seen as too close to the first quarter

of 2014 highs. The subsequent corrections have not gone deep enough.

In such an environment, investors have been quick to shift their preferences to where they see value,

even within the high-end property space. (In fact, some investors holding secondary property and

looking to exit have had to “top up” their interiors and throw in a few bespoke extras to find investors

willing to buy off them. Others have had to exit at a discount to what they had originally paid. That

would be the biggest worry for investors if this were to happen more frequently.)

“Secondary market activity can only pick up if asking prices were to drop below — or at best be on par

with — off-plan options,” said an investor. “Even with the 4 per cent Oqood charges — that comes with

any off-plan purchase — buying off-plan now is more competitive than in secondary.”

So far, secondary market buyers have not started unilaterally dumping prices to find a quick exit. That is

a huge relief for the overall market’s long-term health. But investors are starting to fret.

But market sources suggest that the time may have come for real estate authorities to consider revising

some of the charges that come with a transaction. This includes the 4 per cent registration charge





(which was doubled in the fourth quarter of 2013). And hopefully have the banks become slightly more

generous with their mortgage disbursals.

But some are unsure whether cutting down on transaction charges is the right step — “Such a move

does seems unlikely as transaction charges in Dubai still compare favourably to that in developed

markets.”

Source: The Gulf News

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FUTURE OF REEM ISLAND IN ABU

DHABI REVEALED


A plan for Reem Island that includes housing for 210,000 residents and 11 new schools has been

announced. The integrated master plan, which is in line with Abu Dhabi Vision 2030, will see three main

developers - Tamouh, Aldar Properties and Reem Developers - work together.

Currently using only 15 per cent of the land, Reem Island houses 20,000 people. The master plan will

cover 8.869 million square metres of the island with a gross total floor area of 20 million sqm. Out of

this, 1.442 million sqm will be used for office space, while 873,576sqm will be allotted for retail -

including the upcoming Reem Mall and smaller local establishments.

Other facilities to be constructed include 10,000 hotel rooms, three private hospitals, nine mosques and

500,000sqm worth of new parks and open spaces. Some 710,000sqm of pedestrian waterfront

promenades and beaches will also be included.

The master plan also includes a network of transport facilities, planned by the Department of Transport,

for pedestrians, cyclists, buses and a metro. Eight new bridges connecting Reem Island, Maryah Island

and Abu Dhabi City will also be constructed, four of which will be completed this year and 80 per cent by

2017.

Although Reem Island is known for high rents, Mohammed Al Khadar, Abu Dhabi Urban Planning

Council executive director, urban development and Estidama sector, said there will be affordable housing

for mid-income people.

"Twenty per cent of these projects will cater to mid-income citizens", he said. "We realise that there is a

huge market in that area and we also know the necessity for community development. An affordable

school fee is also part of the plan, not all schools on Reem Island will have high-end fees".

Within the next two years, about 4,000 units of affordable residential units will be ready in the City of

Lights and Horizon residences developed by Tamouh, three quarters of which have already been built.

However, estimation on when the entire project will be complete shall only be known after the individual

developers propose their detailed plans.

All new facilities being built will have the Estidama rating of one - the green building rating system

developed by the Urban Development Council. This rating ensures 80 per cent of water heating in

buildings is by solar energy, a 35 per cent reduction of water usage and 40 per cent less electricity use.

Schools will have an Estidama rating of two.

Source: 7 days

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MOHAMMAD INSPECTS HOUSING

PROJECTS

SUNDAY 07 JUNE 2015

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE

and Ruler of Dubai, has asserted that all UAE’s strategies, plans and projects consider the welfare of

citizens a top priority.

Shaikh Mohammad affirmed that the government is using all possible capabilities and resources to

satisfy the needs of the community and achieve people’s happiness.

He stressed that providing quality and efficient services is at the heart of the government’s strategies

and developmental projects for all service sectors, including education, health services and housing.

Shaikh Mohammad stated that he closely follows the customer satisfaction surveys on government

services, which constitute the first criteria in performance assessment. He also directed that best

international practices be followed to further enhance services and achieve people’s happiness and

welfare.

Shaikh Mohammad’s comments came during his visit to the premises of the Mohammad Bin Rashid

Housing Establishment (MRHE). Shaikh Mohammad was accompanied by Shaikh Hamdan Bin

Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai, and Shaikh Maktoum Bin Mohammad Bin

Rashid Al Maktoum, Deputy Ruler of Dubai.

Mohammad Ebrahim Al Shaibani, Chairman of the Board of MRHE ; Sami Abdullah Gargash, CEO of

MRHE. And MRHE Board members and senior officials received Shaikh Mohamma on his arrival.

During his inspection tour, Shaikh Mohammad directed MRHE’s officials to speed up work processes and

enhance work efficiency by using latest technologies.

Shaikh Mohammad also chaired a meeting with MRHE’s Board and senior executives where he was

briefed on the establishment’s services that include finished houses, maintenance grants, lands, housing

loan services, constructed housing loans, maintenance loans and other services. The briefing also

included a summary for MRHE’s projects and plans.

During the meeting, Shaikh Mohammad approved housing projects with a total value of Dh3.6 billion

and also reviewed the MRHE projects from 2007 to 2014. The 16 accomplished projects included 4,368

houses with a total cost of Dh4.8 billion.

Shaikh Mohammed was also briefed on the construction loans projects from 2007 to 2014. The total

paid amounts for the construction loans was Dh2.9 billion while the maintenance and addition loans

reached Dh46.5 million. Shaikh Mohammad was also briefed on MRHE’s initiatives for maintenance of

housing complexes over ten years of age and refurbishing damaged houses.

During the meeting, MRHE’s officials explained the research findings for the engineering projects from

2010 to 2014. During this period, MRHE’s concerned departments conducted 16 research studies aiming

to establish the best eco-friendly house designs and construction systems. The research findings

included the green buildings systems, energy conservation and efficiency, construction systems and

building materials systems.

The meeting also discussed the details of MRHE’s approved loans and grants from 2007 to 2014 totalling

14,855 approved applications covering various types of housing facilities and services.





The meeting discussed ‘Mathkhor’, an initiative launched by the establishment to educate beneficiaries on saving before buying a house, and the ploughing back initiative that encourages beneficiaries to

commence building their homes after obtaining required approvals from MRHE without additional costs

until the issuance of the completion certificate.

Shaikh Mohammad was also briefed on MRHE’s e-services and apps that help beneficiaries follow up on

their application round the clock.

Shaikh Mohammad also acquainted himself with the MRHE’s nursery, a privilege that enables MRHE’s

female employees to carry out their duties.

Source: Gulf News

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DUBAI REALTY WEIGHED DOWN BY

LUXURY LAUNCHES

MONDAY 08 JUNE 2015

If the pace of new project launches is maintained, it could set off an imbalance in Dubai’s property

market within five years, according to a new report issued by Phidar Advisory, a consultancy.

“In the base case scenario, assuming an average GDP (gross domestic product) growth of 3.4 per cent

and residential demand CAGR (compounded annual growth rate) of 4.6 per cent, if all of the announced

projects are completed, the market could achieve a 7 per cent oversupply in five years,” the report

states.

“If stalled projects restart, the projected oversupply increases. Even a more bullish scenario of 4.1 per

cent average GDP growth rate cannot absorb all potential supply expansion, including under

construction, launched, announced, and stalled projects.”

The ‘disequilibrium’ will be particularly severe in the top end of the market. This will have consequences

for Dubai’s typical high networth investor base and their acquisitions of multiple high-end properties.

“There were a lot of investors who three years ago saw that Dubai’s high-end property space had limited

fresh stock available and went in for new launches,” said Samir Munshi, Managing Director of Silver

Heights Real Estate. “We are still seeing a lot of that happening — and it has reached a point where

some developers are already finding it difficult to meet their sales targets.

“The same problem — of excess supply — had happened in commercial property, which is why Dubai’s

developers are not coming out with any significant new additions. Some such adjustments are necessary

in the premium residential space too.”

The pace of new launches picked up significantly in the first five months, led in the main by private

developers. The majority were targeted at the upper-mid to high-end of the value chain.

The Phidar report argues the point that “housing supply with current estimated rent within the range

Dh100,000 to Dh160,000 per annum could be oversupplied by up to 40 per cent in five years, primarily

driven by supply pipeline trends.”

And where there is perceived oversupply, investors are hardly likely to get the return on investments.

There lies the risk for both such buyers as well as for the wider Dubai realty market.

“However, overbuilding in the mid- to high-income segment likely will increase competition and lead to

supply reordering,” said Jesse Downs, Managing Director of Phidar.

Investors seem to have a clue to what could be in store. In the first five months, single-family home

sales were down nearly 25 per cent from a year ago period. Apartment transactions were down 1.5 per

cent, according to initial estimates from Dubai Land Department.

The one category that is still far removed from any immediate oversupply situation is in the affordable

segment, anything in the Dh1,000 a square foot and below range. There have been some early movers

into this space, but the releases to date are only the tip of what is needed in the market.

“There is an opportunity to reposition upcoming products to meet the city’s anticipated housing needs,”

said Downs. “If current announcements convert into launches, the probability for instability by 2020 will

increase significantly.”





Source: Gulf News

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NEW UAE STATE BANK TO PUSH

HOUSING, JOB CREATION POLICIES

WEDESDAY 17 JUNE 2015

The United Arab Emirates launched a state-owned bank on Wednesday to finance housing and other

projects for UAE citizens, in a fresh round of intervention to promote the government's social policy

objectives.

In the last several years, the government has stepped up efforts to ensure social peace by providing

housing and jobs to UAE citizens, who account for only about 1 million of the country's total population

of roughly 8 million.

Abu Dhabi-based Emirates Development Bank, created by the merger of Emirates Industrial Bank and

Emirates Real Estate Bank, will serve that purpose.

With authorised capital of 10 billion dirhams ($2.7 billion), the EDB will allocate 5 billion dirhams to

financing housing, industrial and other schemes for UAE nationals, the bank said on Wednesday.

It plans to provide low-cost housing finance to around 30,000 UAE citizens by 2021. It will also allocate

500 million dirhams to a credit guarantee scheme with other banks that will support local owners of

small businesses, which the government hopes will create private sector jobs for citizens.

The EDB joins 23 local banks and 28 foreign banks in the UAE; the government owns major stakes in

many of the local institutions.

Source: Zawya

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TURN YOUR UAE PROPERTY INTO

HOTTEST ONLINE LISTING: 3 KEY

STEPS

SUNDAY 21 JUNE 2015

Has your apartment been listed on online property portals for some months now and you aren’t getting

buyers?

Then there is something that you are not paying attention to - content and pictures.

A picture may be worth a thousand square feet, but taking pictures of apartments and/or villas with

smartphones may not help your listing stand out among the thousands present online.

“We can see sellers using very low quality pictures of apartments. They even tend to use the artist

impression of the completed tower, rather than having pictures of the house or facilities available in the

completed tower,” says a senior official with a top Dubai-based real estate brokerage firm.

“Moreover, these listings lack in accuracy and information. The right use of keywords is also missing,” he

says.

Here are some tips to get buyers to scan your listing:

Get a professional

It is better to take help from a professional when selling your property. Real estate agents have the

experience and know how to market a property.

Their advice on listings comes in handy as they know what points of your property need to be

highlighted and showcased to sell the property quickly.

Quality pictures

Never upload low quality pictures taken with your mobile. The most important part of the listing is

pictures. Pictures taken by professionals make a great change.

It is advisable to hire one, but if the cost is more, one can use real estate agencies that offer the

service.

Keep in mind that having a picture taken during the day and night is important to give the buyer an

understanding of the premise.

Use the right keywords

Use the right keywords in the title of the listing as it increases the chance of a successful online listing.

Captivating words in the title and text drives the buyers to read and connect with the seller.

Remember to highlight amenities, proximity to schools, hospitals, shopping centres and public transport

options.

Source: Emirates24/7

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PROPERTY FLASH SALE… WILL INDIAN

EXPATS IN UAE GO FOR IT?

FRIDAY 19 JUNE 2015

Non-resident Indians (NRIs) in the UAE will have the chance to buy a property in India with access to

more than 250 projects spread across the country in a flash sale planned next week.

99acres.com, a real estate portal, and Amura Marketing Technologies, a digital marketing technology

company, will hold the flash sale from June 26 to 28.

On board are nearly 35 major developers offering properties ranging from Rs1.5 million to Rs200 million

in cities such as Mumbai, Delhi/National Capital Region (NCR), Bangalore, Pune, and Chennai.

"We are hosting a first of its kind flash sale in the real estate industry with an expectation of selling

inventory worth Rs20-Rs25 billion. Some of the developers are launching their projects exclusively

through this flash sale and we are expecting over 100,000 customer logging from this sale,” Vikram

Kotnis, Managing Director, Amura Technologies, told Business Standard.

“Our main objective of this sale is to boost the real estate market by creating a demand among

customers to benefit from exclusive pre-negotiated deals offered by developers,” he added.

Under the sale, buyers will be offered discount coupons. Buyers during and post the three days of the

sale can make payments and redeem their offer coupons.

“It is not something like buying a mobile phone, property is where you invest your life saving. I would

prefer to visit the site and see the progress rather than depending on the developer’s information,” S.

Krishakant, who works in a private company in Dubai, told Emirates 24|7.

“May be such flash sales may work well for the resident Indians, but for me living in the UAE it is only

possible if we are offered a discount coupons with longer validity dates of over one year. I can inspect

these properties only when I go for a vacation to India,” he explains.

Priya Sen echoes the same view.

“I will of course log in to check the offers, but I am not buying. I would use the services of real estate

brokers in Dubai to find a suitable property for me back home rather than go online and book

something,” she states.

A survey by Sumansa Exhibitions, organizers of Indian Property Show (held last week in Dubai),

revealed that 72 per cent of NRIs were planning to buy a property in India within next six months with

Mumbai and Bengaluru being the favourite investment destinations.

Emirates 24|7 has reported that NRIs can get maximum discount on a property if they book units during

the project’s pre-launch stage.

It has been reported that developers in NCR, Mumbai, Bangalore and Kolkata were offering nearly 25

per cent discount on per square feet rates, lower home loan rates, free studio apartments to those who

buy top floors (penthouses) of a luxury residential towers, modular kitchens, etc. to entice buyers due to

a high rate of unsold inventory.

In April 2015, Indian government approved the Real Estate Development and Regulation Bill, which will

pave way to set up a real estate regulatory authority, akin to Dubai’s Real Estate Regulatory Agency,





which is aimed at protecting property buyers' by bringing transparency and accountability into the

sector.


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LOWER PRICES, HIGHER YIELDS:

RIGHT TIME TO INVEST IN DUBAI

PROPERTY?


Property prices in Dubai are softening with a new report by UK-based Global Property Guide (GPG)

putting the pace of decline at 2.72 per cent for first quarter 2015.

"After spectacular house price rises from 2012 to 2014, Dubai’s residential prices fell by 2.72 per cent

during the year to Q1 2015, the first quarter of annual decline since Q2 2011 and in sharp contrast with

year-on-year (y-o-y) surge of 31.57 per cent in a year earlier," said the research house, which covers

market trends in 101 countries.

House prices fell by 53 per cent from third quarter 2008 to third quarter 2011, but the market started to

recover in the second quarter 2012 with double-digit house price increases since then.

Real estate consultant JLL and Standard & Poor’s expect average house prices to fall by between five

and 10 per cent this year.

Dubai, which has a more diversified and less oil dependent economy, is expected to grow by about 5 per

cent this year, the report said, citing International Monetary Fund.

‘Emirates24|7’ reported earlier that gross rental yields in Dubai were among the highest in the world,

with smaller apartments offering rental income of 7.21 per cent.

The gross returns on investment from large to small apartments ranges between 5.87 per cent and 7.21

per cent, according to the GPG.

In comparison, gross rental yields in Hong Kong stood at 2.82 per cent, India 2.22 per cent and

Singapore 2.83 per cent, while London was between 2.72 per cent and 3.20 per cent.

"There could have been a better advantage on prices and availability if the properties were bought along

the positive trend that kicked off from early 2012. But it is never too late, it is good time to identify the

best projects and offering before the prices can escalate even more when the 'actual demand' would

commence," Parvees Gafur, Chief Executive Officer, PropSquare Real Estate, told 'Emirates24|7'.

Sunil Jaiswal, CEO, Sumansa Exhibitions, which held a ‘Dubai property show’ in London this year, had

told this website: “Dubai is an international city and I think any investor around the world today should

be taking note of Dubai as a place to invest because of the opportunities that lies here. It is among the

few places in the world where you can get excellent equity growth as well as good cash flow.”

Local consultancies such as Valustrat has revealed that time is right for renters in the emirate to become

homeowners as equated monthly installments fall below their monthly rental outgo. However, one thing

has to be remembered that it is now mandatory for a purchaser to put 25 per cent as down payment for

completed properties.

Dubai is expected to create over 277,000 new jobs in the run up to the Expo 2020, with HSBC asserting

population growth of below 5 per cent per annum could fairly absorb nearly 90,000 units expected to be

delivered by 2018.





Ireland top performer

The first quarter report by Global Property Guide reveals that house price boom continues ever more

strongly with prices rising in 25 of the 38 world's housing markets which have so far published housing

statistics during the year to Q1 2015, using inflation-adjusted figures.

Twenty markets showed stronger upward momentum in the first quarter 2015, while 18 housing

markets showed weaker momentum.

Ireland topped the list of the world top performer, with housing prices surging by 17.57 per cent during

the year to first quarter 2015, a remarkable upturn from a y-o-y increase of 7.49 per cent in the first

quarter 2014 and the highest annual rise in almost 15 years.

Three of the five strongest housing markets in the new survey are in Europe. In all, thirteen European

markets saw house prices rise more during first quarter 2015 than the previous year, and only six

showed weaker performance, the report said.

On the other hand, house prices rises in the US and Brazil, among others, have slowed dramatically, it

added.

Asia has also generally weakened, with Japan and Hong Kong significant exceptions. Hong Kong's house

prices rose spectacularly by 14.36 per cent during the year to Q1 2015, with homes sold up 55.4 per

cent y-o-y in Q1 2015, despite weak economic growth of 2.1 per cent (annualized) in Q1 2015. China,

Singapore, Vietnam and Indonesia's housing markets have already entered a downturn. In fact, China

and Singapore are two of the five weakest markets in our global survey.

Inflation-adjusted figures are used throughout this survey, which covers the period till end of first

quarter of 2015. In the case of Kiev, Ukraine, the Global Property Guide adjusts using the official US

inflation rate since Ukrainian secondary market dwelling sales are denominated in US dollars, as is the

house-price index.


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ABU DHABI EXPECTED TO LAUNCH

'RENT INDEX' BY YEAR-END


The Abu Dhabi Department of Municipal Affairs is likely to unveil a provisional rent index by year-end,

according to a senior government official.

“A new law was issued regulating the property sector in the emirate and we believe that DMA will come

out with a provisional rental index by year-end,” Mohamed Al Khadar, Executive Director, Urban

Development & Estidama Sector, of the Abu Dhabi Urban Planning Council (UPC), told Emirates 24|7.

The DMA, the Department of Economic Development, the UPC and the Abu Dhabi Council for Economic

Development are working on compiling the rent index, industry sources told this website.

The emirate removed the five per cent rent cap in November 2013.

In April 2015, MPM Properties, the real estate advisory subsidiary of Abu Dhabi Islamic Bank, said rents

have increased on an average of four per cent in the first three months of 2015 and are expected to rise

further this year due to drop in new housing supply in the capital.

Only 750 new homes were delivered in the first quarter, the report said, and a total of 5,800 units are

expected to be completed this year, which represents the lowest level of new residential supply for five

years.

In June 2015, Abu Dhabi announced a law regulating its real estate sector to bring in more transparency

and protect the rights of investors.

As per the government directive, the law specifies the jurisdictions of the DMA regarding all real estate

issues including preparation of a real estate register to save all data and documents relating to any real

estate development, and creation of a project guarantee account, to be opened by the developer for

each project in order to protect the rights of buyers in case the units being sold off-plan.

Al Khadar admitted that the UPC’s initiative on master developers allocating at least 20 per cent of new

residential property in the emirate for affordable housing had not worked out.

The initiative planned to set rents at about 35 per cent of household income with studio leases starting

at Dh25,200 per annum (pa) and three-bedroom units for up to Dh88,200 pa.

In fact, Dubai launched its rent index in 2011, which is updated three times in a year.

It is now mandatory for landlords to adhere to the index when seeking rental increases.

It is understood that the Real Estate Regulatory Agency (Rera), the legal arm of Dubai Land

Department, is working on launching a new index, but no time has been specified of the launch.


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With 30 years of Middle East experience, Asteco’s Valuation & Advisory Services

team brings together a group of the Gulf’s

leading real estate experts.

Asteco’s network of offices in Abu Dhabi, Al Ain,

Dubai, Northern Emirates, Qatar, Jordan and the Kingdom of Saudi Arabia not only provides a deep

understanding of the local markets but also enables us to undertake large instructions where we can quickly apply resources to meet clients requirements.

Our breadth of experience across all the main property sectors is underpinned by our sales, leasing and investment teams transacting in the market and

a wealth of research that supports our decision making.

John Allen BSc MRICS

Director, Valuation & Advisory

+971 4 403 7777

[email protected]

Julia Knibbs MSc

Manager – Research and Consultancy - UAE

+971 4 403 7789

[email protected]

VALUATION & ADVISORY

Our professional advisory services are conducted

by suitably qualified personnel all of whom have

had extensive real estate experience within the

Middle East and internationally.

Our valuations are carried out in accordance with

the Royal Institution of Chartered Surveyors

(RICS) and International Valuation Standards

(IVS) and are undertaken by appropriately

qualified valuers with extensive local experience.

The Professional Services Asteco conducts

throughout the region include:

• Consultancy and Advisory Services

• Market Research

• Valuation Services

SALES

Asteco has established a large regional property

sales division with representatives based in UAE,

Saudi Arabia, Qatar and Jordan.

Our sales teams have extensive experience in the

negotiation and sale of a variety of assets.

LEASING

Asteco has been instrumental in the leasing of

many high-profile developments across the GCC.

ASSET MANAGEMENT

Asteco provides comprehensive asset

management services to all property owners,

whether a single unit (IPM) or a regional mixed

use portfolio. Our focus is on maximising value

for our Clients.

OWNER ASSOCIATION

Asteco has the experience, systems, procedures

and manuals in place to provide streamlined

comprehensive Association Management and

Consultancy Services to residential, commercial

and mixed use communities throughout the GCC

Region.

SALES MANAGEMENT

Our Sales Management services are

comprehensive and encompass everything

required for the successful completion and

handover of units to individual unit owners.