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Transcript
Page 1: NEWS BRIEF 49 - asteco.com€¦ · DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN | KSA © Asteco Property Management | 2017 | asteco.com IN THE MIDDLE EAST FOR 30 YEARS Page 2

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

© Asteco Property Management, 2017 asteco.com IN THE MIDDLE EAST FOR 30 YEARS

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

NEWS BRIEF 49 SUNDAY, 03 DECEMBER 2017

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REAL ESTATE NEWS

UAE / GCC

REAL ESTATE RISK AND INSURANCE

AMLAK REDEEMS DH100M FROM MUDARABA INSTRUMENT

MUMBAI DEVELOPER TESTS WATERS IN POST-RERA AGE

MANAZEL EYES SAUDI REAL ESTATE PARTNERSHIPS IN 2018

'CAN I REMORTGAGE IF MY VILLA NO LONGER HAS 25 PER CENT EQUITY DUE TO

FALLING PROPERTY PRICES?'

DUBAI

DUBAI’S OFF-PLAN SALES TAKE A NOVEMBER DIP

DUBAI’S HOTEL INDUSTRY COULD DO WITH A TWEAK

DUBAI’S FREEHOLD OFFICES SEE A SALES SPIKE AHEAD OF VAT

IDYLLIC URBAN LUXURY

DUBAI'S TOP AREAS FOR HOUSE SALES AND RENTS

WHAT IS A LUXURY HOME?

DLD ORGANISES ROADSHOWS IN MOSCOW, LONDON

FUNDAMENTALS OF DUBAI PROPERTY ARE IN TOP SHAPE

WHEN OFF-PLAN SALES DOMINATED DUBAI PROPERTY

HOW THE YEAR 2017 PANNED OUT FOR DUBAI PROPERTY

DUBAI PENTHOUSE OR VILLA? FOR DH23.6M YOU CAN GET TWO IN ONE - IN PICTURES

EXPO 2020 DUBAI SAYS DH10BN OF CONSTRUCTION CONTRACTS AWARDED THIS

YEAR

DUBAI LAND SALES SAID TO SOAR BY $8BN SINCE 2012

THE SANCTUARY: AN OASIS OF CALM IN THE MIDDLE OF THE CITY

CENTRAL PARK TOWERS AT DIFC ATTRACTS STRONG PORTFOLIO OF OFFICE AND

RETAIL TENANTS IN 2017

ABU DHABI

A BIG-NAME PROJECT’S PULLING POWER

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REAL ESTATE NEWS

ITINERA GHANTOOT NAMED LEAD CONTRACTOR FOR REEM MALL

UAE'S MANAZEL SET TO HAND OVER ABU DHABI VILLAS

NORTHERN EMIRATES

FORUM TO DISCUSS GROWTH OF SHARJAH HOSPITALITY SECTOR

SHARJAH RULER APPROVES 3.3KM CITY BEACHFRONT DEVELOPMENT

INTERNATIONAL

US EAST COAST REALTY OPTIONS FOR GCC INVESTORS

INDIAN DEVELOPER LEARNS FROM DUBAI ON PAYMENT SCHEMES

TURKEY, EGYPT PROPERTY BENEFIT FROM SHIFTING GEOPOLITICAL SANDS

FIVE REASONS WHY THE WORLD'S PRICIEST PROPERTY MARKET KEEPS ON SOARING

BIG SHIFTS COMING TO THE U.S. HOUSING MARKET IN 2018

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REAL ESTATE RISK AND INSURANCE Wednesday, November 29, 2017

As an owner-occupier, your primary risk would be damage or destruction to your real estate asset. As such your

insurance will likely be for a lump sum amount or full replacement or reinstatement of the asset. Owner-

occupiers may also insure for business interruption to cover them for lost income when the premises becomes

unusable due to damage. This may be important, for example, where the owner has a mortgage and would have

difficulty in meeting the repayments.

An owner would generally take out insurance for third-party risks: for example, where a visitor suffers an injury

caused by or occurring on the real estate asset. In transferring ownership of a real estate asset, the buyer and

seller will need to establish a clear date for the risk of damage or destruction of the real estate asset to pass. The

logical time for the passing of this risk is the date the title is transferred. Generally the seller will cancel the

insurance on this date and the buyer will implement its own insurance. There may also need to be a clear position

in the sale-and-purchase contract as to what may happen should damage occur between the date of contract and

the date of title transfer.

Where a real estate asset is tenanted, the lease contract may expressly address the allocation of risk between the

landlord and the tenant and require the parties to obtain insurance.

It is not possible to map out all of the possible variations in such arrangements, however, the following represents

a fairly typical allocation of risk and insurance in a retail/office unit context.

Fit-out period

The landlord will generally require the tenant to have or procure contractors all risk insurance as well as worker’s

compensation insurance. The landlord will generally require that the landlord is named co-insured and specify the

level of cover the tenant must obtain or procure.

Typically the insurance undertaken during the fit-out period will be obtained by the contractor completing the fit-

out. The tenant will need to ensure that this insurance is obtained and contains the relevant covenants sought by

the landlord under the lease agreement.

Damage and destruction of the building

The landlord would normally obtain all risk building insurance but may require the tenant to insure for damage

arising out of the tenant’s or occupiers’ negligence. This could result in double insurance and an alternative

approach would be for the tenant to be named as a beneficiary of the landlord’s insurance. This is, however, not

the practice in the region.

Landlords will typically exclude liability for any other types of losses sustained by the tenant — for example,

economic losses when the tenant is unable to operate from the premises. Were the landlord to face a claim by

the tenant in these circumstances, it may be that the landlord’s third-party liability insurance provides a measure

of protection to the landlord. As the landlord will exclude liability for the same, the tenant may wish to obtain

insurance for business interruption.

As the landlord will be required to cease charging rent for the period the premises cannot be occupied, the

landlord may wish to obtain loss of income insurance. It is common in the context of a commercial office or retail

unit lease that the tenant would meet the landlord’s insurance costs as part of the service charges charged to the

tenant.

Tenant contents damage

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The landlord may specifically require the tenant to insure the tenant’s contents, fixtures and fittings and to name

the landlord as co-insured and/or require the insurer to provide a waiver of its right to sue the landlord in any

case where the landlord’s negligence causes the damage.

Third-party injury

Third-party injury claims are civil wrongs and accordingly the party claiming damage or injury does not need to

establish a relationship in contract with the party causing the harm. Generally, such claims will arise due to the

party in control of the area not taking due care to ensure that areas are kept safe.

Accordingly a landlord may wish to insure for any injuries that may occur to third parties in common areas of a

building. As the tenant may also exercise control over their premises, the tenant should also take out insurance

for such claims.

Other third-party risks

Other third-party risks arise in multi-tenanted buildings in that if a tenant damages the building, this may cause

losses to other tenants. The landlord can seek to exclude liability for such claims in the contract with each tenant,

but would very likely also cover such risks through their own third-party policies.

As a tenant will have no ability to mitigate the possibility of claims from other tenants in contract, the tenant

would need to obtain its own third-party policy to cover such risks.

Developers, investors

Throughout the construction of a project, the contractors will undertake the necessary insurances. As the

developer will be paying progress payments throughout the construction, it is in the developer’s interest to

ensure that this insurance is in place and that the developer is also co-insured under the contractor’s policy. It is

also important to specify clearly under the construction contract when the developer shall be required to accept

risk for the property following completion of construction and, therefore, should obtain its own insurance.

If the project involves off-plan sales, then, once the development is completed, the developer will start handing

over the units to the investors. Generally, in the case of jointly owned (strata) property, insuring the building,

including the usual fitting and fixtures in the units, would be the responsibility of the owners’ association (OA). In

cases where there is not a legally established OA, then it may be possible for the developer to obtain a policy that

nonetheless recognises the interests of investors as beneficiaries of the policy.

The developer or the OA will need to consider the type of policies they obtain. Generally speaking, such insurance

will cover, and may be required to cover by law, full replacement and reinstatement, third-party liabilities and

could cover loss of income or alternative accommodation costs.

Investors would typically insure their own contents and improvements. Investors may also wish to obtain loss of

rent insurance or insurance covering the cost of alternative accommodation if this is not taken out by the

developer or OA.

Summary

This is a general discussion of the risks in real estate and how they may be addressed in contract and through

appropriate insurance. As each property and transaction is different, the risks and insurance solutions may differ

so it is important that each transaction is assessed on a case-by-case basis. Accordingly, this article should not be

treated as advice as to what is required in any particular set of circumstances.

Source: Gulf News

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AMLAK REDEEMS DH100M FROM

MUDARABA INSTRUMENT Monday, November 27, 2017

Real estate finance firm Amlak Finance has redeemed a further Dh100 million of a Dh1.3 billion Mudaraba

instrument agreed as part of its restructuring.

The payment takes Amlak’s total redemption to Dh309 million, or 21 per cent of the Dh1.3 billion instrument. The

instrument is convertible into company shares, if not redeemed, by the end of the 12th year of the restructuring

period from monetisation of Amlak’s real estate assets value growth.

Arif Al Harmi, Managing Director and CEO of Amlak, said, “We are pleased that, despite certain headwinds, we

have successfully paid 21 per cent of the Mudaraba Instrument. Going forward, we seek to remain committed and

on track in our commitments to financiers.”

Source: Gulf News

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MUMBAI DEVELOPER TESTS WATERS IN

POST-RERA AGE Monday, November 27, 2017

A Mumbai-based developer is tapping the NRI market in the UAE for its new township project located on the

Western Express highway of Andheri-Jogeshwari east corridor. Omkar Realtors is seeking buyers for 1,200-plus

apartments in phase one of its Rs17 billion community tentatively titled 'Passcode Andheri Highway'.

This is one of the biggest residential project launches in India after the implementation of the Real Estate

(Regulation and Development) Act. However, the developer is confident of selling out the units, a feat it

accomplished for its earlier Malad project launched in May this year.

One-bedroom apartments at the project cost Rs8.7 million, two-beds Rs12 million and three-beds Rs16 million.

Buyers can initially pay a down payment of five per cent of the property value and the rest on possession.

The developer is funding the project with its own equity and from financial institutions.

Says Rahul Maroo, senior vice-president, Omkar Realtors: "We are targeting 12 to 14 countries for sales. In a

project like this, NRIs contribute at last eight to 10 per cent of sales. There is huge demand for housing in India,

specifically Mumbai. If you have a branded developer who is offering a boutique, well-planned product that suits

your pocket, people grab it."

The land for the 65-acre project was acquired from a slum and the community will be ready by 2022. Construction

will commence in 30 to 45 days.

"While offtake in most of Mumbai's residential markets has been slow, numbers show that sales have been good

in projects which offer value for money and good location. Andheri East and Jogeshwari East have an inherent

location advantage, and the time is ripe for residential townships which can provide a much-needed work-life

balance in India's busiest metropolis," observes Ashutosh Limaye, national director - research, JLL India.

The project will have a Metro station within walking distance and offices will be added in subsequent phases. The

developer is expecting rental yield of 3.5 to four per cent.

Commenting on the impact of Rera, Maroo adds: "Rera has differentiated professional developers from Tier 2 and

3 players - or say, the men from the boys. Twelve years ago, there was a consolidation phase among banks, later

among e-commerce portals and now the time is ripe for real estate."

The executive explains that appetite for luxury housing (from Rs50 million to Rs60 million) has taken a big hit.

Omkar Realtors has over 300 acres of land bank in Mumbai. It has already delivered 15 projects in Mumbai.

Source: Khaleej Times

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MANAZEL EYES SAUDI REAL ESTATE

PARTNERSHIPS IN 2018 Sunday, November 26, 2017

Abu Dhabi's Manazel Real Estate, the developer behind mid-range housing schemes including Al Reef Villas, plans

to enter Saudi Arabia in 2018, amid what it describes as “significant demand" for affordable housing across the

Mena region.

“We are looking at a range of opportunities to expand into dynamic growth markets and broaden our revenue

base especially within the kingdom’s market, which has always been significant to us,” said Manazel’s chairman

Mohamed Al Qubaisi said in a statement on the Abu Dhabi stock exchange on Sunday.

“As part of our expansion strategy we will continue to focus on entry into new markets which offer ‘untapped’

value and support our growing real estate portfolio,” he added.

Manazel will enter the kingdom “through targeted developments” by the end of 2018, it said, giving no further

details.

Saudi Arabia is primed to undergo fiscal transformation as it works to implement its Vision 2030 economic

transformation strategy, presenting new opportunities for investment in the non-oil private sectors. Vision 2030

envisages that 52 per cent of Saudi families will own homes by 2020.

The Public Investment Fund (PIF), the country's sovereign wealth fund, last month announced the establishment

of a real estate refinancing company aimed at boosting home ownership in the kingdom. PIF estimates the

country's real estate financing market will rise to 500 billion Saudi riyals (Dh489bn) by 2026 from 280bn riyals this

year.

Manazel said, on top of this, there was significant investment opportunity in the development of real estate

investment trusts (Reits) across the GCC, tax reforms and the development of Saudi Arabia’s leisure and tourism

sector.

“This strategy will deliver significant returns for our shareholders over the longer term and I look forward to

reporting on further progress shortly,” he said.

The developer, one of a handful of companies listed on Abu Dhabi’s secondary market, reported an 81 per cent

rise in first half profits in August on the back of a 54 per cent increase in revenues and a drop in impairments.

Manazel said in October it would expand into building schools as it seeks to create new revenue streams beyond

residential development.

Source: The National

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'CAN I REMORTGAGE IF MY VILLA NO

LONGER HAS 25 PER CENT EQUITY DUE TO

FALLING PROPERTY PRICES?' Wednesday, November 29, 2017

I currently have a mortgage on a villa in Dubai with a rate of 5.19 per cent, however, I have been offered a two-

year fixed rate of 3.49 per cent by another bank. This would then move to 4.4 per cent after two years. Due to the

fall in property values, my villa no longer has 25 per cent equity. Would this prevent me from remortgaging and, if

so, is there any value in speaking to my existing lender to negotiate my current rate? NC, Dubai

Sadly if there is less than the required 25 per cent equity in your villa, you will not be able to re-mortgage with the

other bank. Your best bet is, as you say, to try and negotiate with your existing lender to see if better terms can be

achieved.

Although the profit rate from the other lender is better, always remember that they will have set up fees and you

may also have to pay early redemption charges from your bank too, all of which will bite into the better terms

overall.

I live in an apartment in Abu Dhabi and my tenancy is ending soon. This is my first tenancy contract in UAE and I

do not wish to continue with it. I gave the landlord one month's notice, but now they are saying I have to pay two

month's rental as a penalty. My argument against doing this is:

1. I am not breaching the one-year contract. The tenancy is almost over, so why should I pay a penalty?

2. The landlord has not given me a notice of renewal. Does the rule apply on both sides?

3. There is no two-month notice period mentioned in the contract. They have mentioned a rule (20) of 2006, but

being a new entrant in the UAE, I was unaware of this.

I am not in a situation to be able to pay a penalty. What actions can be taken by the landlord? HK, Abu Dhabi Any

changes to the rental contract of a property in Abu Dhabi must be communicated in writing giving two months’

notice prior to the expiration of the current lease. If two months’ notice is not given, (in theory) the contract will

automatically renew under the same terms as before and you will be liable for another years rent.

In reality though, this rarely happens; instead penalties are imposed for not keeping to the two months’ notice.

Speak with your landlord and agree to pay an additional month in rent as a penalty given you did give one

months’ notice. If you do not get to a mutual agreement, it is possible that the owner could stop you from

removing your furniture or items by not giving access to removal lorries etc.

Today I have moved into a new apartment but it is in a pathetic condition. The apartment has been handed to me

without being painted or deep cleaned and there are no light fixtures. I want to complain or even go down the

legal route. Please advise. RG, Dubai A property has to be given back at the end of the tenancy in the manner that

it was given at the beginning. Therefore, in your situation, you would be perfectly entitled to hand it back in this

same state if you so choose. Having said this, it is not normal to receive a property that requires this much

attention, especially at the beginning of the tenancy contract. You would be quite within your rights to complain

to the landlord to get him or his representative to repair and repaint to a satisfactory standard. If you are met

with excuses or negativity, you are also within your rights to cancel the contract and get your money back. You

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pay rent for the quiet enjoyment of the property and if this is not what is offered, you can walk away. Going down

the legal route can be time-consuming and expensive, therefore I urge you to seek mediation directly with the

landlord in the first instance.

Source: The National

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DUBAI’S OFF-PLAN SALES TAKE A

NOVEMBER DIP Wednesday, November 29, 2017

After a blockbuster run between July to end October, off-plan property sales in Dubai for November has taken a

dip, with just over 1,523 units sold. That compares with more than 2,000 off-plan units in July and August and

1,800 plus for September and October, according to the latest data from GCP-Reidin.

More than 19,500 units have been sold as off-plan in the first 11 months.

Developers will be watching closely whether the sales chill extends into December and January as well, or whether

the November dip is just a blip.

One of the most anticipated upcoming off-plan launches would be that for Azizi Developments’ ‘Victoria’

community in MBR (Mohammad Bin Rashid) City. The Victoria is to have as many as 105 buildings and split up into

several phases. (Azizi managed to pull in significant demand for its Earlier MBR City release, the ‘Riviera’, and

particularly during September’s Cityscape Global.) Meanwhile, the Dubai Government owned wasl Properties has

generated solid response for its upscale “wasl1” tower cluster launch in the Zabeel neighbourhood. It has now

extended sales to the third tower.

But across the wider market, there are signs of investors taking their time to decide among the many off-plan

options available in the market. It could also be that after a super-charged four-month run, investors are taking a

sort of breather. Plus, in recent weeks, investors also have had the option of seeking exposures elsewhere, such

as the Emaar IPO and the current one for Adnoc Distribution.

Market sources also point to the fact that so much of off-plan buying had already taken place this year. And such

a pace would have been difficult to maintain. “Activity has reduced somewhat … but off-plan transactions are still

up by a stratospheric 62 per cent on a year-to-date (YTD) basis,” said Sameer Lakhani, Managing Director at Global

Capital Partners. “Transactions continue to be spurred on by the payment plans as well, reinforcing the theme of

affordability. On a YTD basis, it appears that more than 60 per cent of the transactions conducted are below

Dh1,000 per square foot. “Demand for this price segment is expected to rise further … it is this segment that has

also experienced price gains. Both in the secondary, but primarily in the off-plan space in the form of subsequent

releases.”

In the secondary market, activity remained subdued in November, and consistent with the experience right

through the year. Interestingly, the more affordable Discovery Gardens cluster is seeing a demand spark, while

favourable prices are also encouraging buyers to head for choices at Jumeirah Village Circle and Dubai South.

By end November, about 10,500 ready property units were sold in Dubai, including over 860 units in November.

Apart from the first five months of the year, when ready sales did more than 1,000 units apiece, in the second-

half, they have averaged about 800 units. Clearly, competition for investors’ cash from off-plan projects was

particularly intense right through this year.

From an investor perspective, the upcoming VAT should not have much — or any — impact on residential

property demand. The authorities have placed zero rate on all residential buys from 2018. (It will only kick in if a

developer fails to attain a sell-out status in three years after construction.) But developers will still be paying VAT

on their building material and associated construction costs. How much of this get reflected in their future

property launch prices could have an impact on off-plan demand.

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“It’s still too early to talk about a VAT effect on residential off-plan prices,” said an industry source. “There’s still too

much inventory available at pre-VAT prices. Developers cannot suddenly raise prices because their construction

costs have gone up. Any change in prices will be managed gradually.”

Source: Gulf News

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DUBAI’S HOTEL INDUSTRY COULD DO WITH

A TWEAK Wednesday, November 29, 2017

The business environment for the hospitality industry in Dubai in evolving at a very fast pace. The pace of change

is directly impacting the very business model that most operators and developers have been accustomed to over

the past decade and a half.

The traditional business model has yielded impressive and consistent profitability during this run. However, it is

now essential to recognise this ongoing business model evolution. It is clear that businesses that are able to

embrace this change — and adapt accordingly — will succeed.

Most mature hotel markets around the world have experienced and dealt with such evolution. Below are some of

the key challenges that hotel operators will face. These business realities are here to stay and need to be

comprehensively addressed via strategic and well thought through solutions.

Pressure on profit

This is one of the most critical challenges. The operating margins have already corrected in a big way. While the

occupancies have largely held up, it’s the rate that’s been under pressure. This has impacted RevPAR (revenue per

available room). Compounded with the below factors are directly impacting cost of doing business, the break

even curve and profitability index of the hotel model needs to be viewed through an entirely new prism.

Increased build cost

The cost of sourcing quality material and building has been going up. While the cost has been going up in recent

years, this parameter is becoming more and more visible, compounded by some of the other factors below.

Increased cost of human capital

As the market matures, payroll as a percentage to overall business revenues would surely go further up.

Sourcing quality human capital

In a fast paced environment growth environment with consistent addition of new inventory, the human capital

talent pool has been under pressure. Hospitality is becoming more and more experiential, and the entire

attribute of making it so can only be attained through high quality service oriented human resources. The

industry here needs to commit itself to investing in developing and training such pedigree of human capital. This

will go a long way in servicing the growing appetite of hotel industry in the region. Differentiating one’s brand

story in a busy market place

Picking up from the above mention about hospitality becoming more experiential, another key challenge is to be

able to create a clear and compelling brand story and connect well with the consumer’s mind. In past, given the

high demand business environment, this aspect hasn’t been given its due weightage in many establishments.

They will now start to find it hard to resonate with the consumers.

Getting out there and getting business

The tide is clearly shifted to Dubai becoming a buyer’s market. Over the past few business cycles, hotels didn’t

actually have to go out and source business. The dynamic combination of DTCM, Emirates airline, evolution of

Dubai as a destination, and the busy MICE calendar ensured a growth in arrivals across market segments.

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While the overall arrival numbers are still holding up, the key challenge for hotels is to source the right kind of

patron, keeping the profile and overall spending ability in mind

Source: Gulf News

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DUBAI’S FREEHOLD OFFICES SEE A SALES

SPIKE AHEAD OF VAT Wednesday, November 29, 2017

Owners of office properties in Dubai have something to cheer about. In recent months, sales of freehold office

units have been showing steady gains, especially the strata-titled units at JLT (Jumeirah Lake Towers) and Business

Bay.

Around 1,200 office units were sold between January and end November, up 14 per cent from last year’s tally for

the same period. Business Bay makes up nearly half of the total for this year, helped on by a sales spike of 22 per

cent. JLT units tallied 337 transactions during the period, down 11 per cent on 2016.

There could be heightened activity in December ahead of the VAT implementation. All commercial property

dealings are subject to the 5 per cent VAT, which could explain why investors want to acquire units now.

For long it was felt that strata-owned offices in Dubai were a difficult sell. Potential tenants, especially the blue-

chip names, wanted to deal with a single landlord for their space requirements rather than a multitude of them.

Plus, many of the freehold office units were sold in the 2005-08 period when the market was at its peak and there

was demand for all sorts of freehold options. Also, to ease sales, the offices were split up into smaller units,

whereas demand now are for the larger floor plates.

But, right now, those buying offices want to do so before that additional 5 per cent VAT cost burden is imposed.

Market sources say other fundamentals could also be in play in generating current demand.

“As the concept of “office districts” gets decentralised — with the city moving towards Tier 2 locations — demand

in these areas is expected to increase further,” said Sameer Lakhani, Managing Director at Global Capital Partners.

“Especially as bespoke buildings get offered to business houses as well as SMEs. These areas will always be price

sensitive to begin with, but with further development can acquire boutique pricing status in a relatively short

period of time.”

Of the office units bought at Business Bay this year, 35 per cent were for spaces of 1,000 square feet or less.

Demand for this floor size has been stable over the better part of the last five years, which may be an indicator

that the location is becoming a target for small businesses and start-ups, or even the local rep offices of overseas

firms. The creation of additional infrastructure and retail/F&B elements too has helped Business Bay’s office

prospects.

“In terms of prices, the sub-Dh1,000 mark seems to be attractive,” said Lakhani. “At both Business Bay and JLT, we

observe a purchasing pattern from investors and end users alike that defy the gloomy forecasts (for strata

offices). Occupancy rates remain relatively high, and we see a number of transactions where the tenants have

actually become the owners.”

Source: Gulf News

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IDYLLIC URBAN LUXURY Wednesday, November 29, 2017

Al Badia District in Dubai Festival City is fast becoming a sought-after location for buyers and tenants in search of

a luxury lifestyle. When these residential projects were being planned, Al Futtaim Group Real Estate wanted

community living to be the soul of these developments.

Just drive past Dubai Festival City towards Al Badia and the city buzz melts away into this pristine and verdant

version of idyllic living, complete with plush landscaping and water elements. The three distinct sub-communities

— Al Badia Hillside Village, Al Badia Residences and Marsa Plaza — are close to the Dubai Creek. And while they

inspire quiet living, they are not more than two minutes away from the highways that lead to Business Bay or Bur

Dubai, and are within 10 minutes from the Dubai International Airport. Perfect for families, Al Badia also offers

facilities for leisure, recreation and education.

Al Badia Hillside Village

Al Badia Hillside Village is an epitome of urban living coupled with a connection to the past in the form of

Arabesque architecture cloaking the seven sand-coloured condominiums. Cobbled streets lead to the entrance of

each condominium, barred by heavy wooden doors. It bears semblance to a traditional Arabic souk or Dubai’s Al

Fahidi Historic Neighbourhood, as the building design concept includes brown-coloured wind towers crowning

parts of the rooftop and latticed designs.

With only four apartments in a floor and only five floors per condominium, privacy is guaranteed, along with

spacious open terraces and courtyards. Within walking distance of Dubai Festival City and its several dining and

leisure options, the community is ideal for those who want to enjoy such a picturesque part of the city.

Al Badia Hillside Village has a mix of nationalities, including Chinese (16 per cent), Indians (16 per cent), Iraqis (13

per cent) and Iranians (9 per cent).

Price (excluding utilities)

For one-bedroom units with sizes from 1,240 sq ft, the starting sales price is a little over Dh1.54 million, while two-

bedroom units with sizes from 1,726 sq ft have prices starting at nearly Dh1.84 million. Three-bedroom units with

sizes starting from 2,213 sq ft have a selling price of at least Dh2.76 million.

Al Badia Residences

Adjacent to the Areej Club is Al Badia Residences, which has an ideal blend of town houses and low-rise

apartments. The Mediterranean architecture elements are plain to see: arched windows, domes, red tiled roofs

and exterior walls that look like stucco. With phases one and two completed in 2007, phase three of the

residences was added in 2012. The property has a lush feel with well-maintained landscaped gardens and

panoramic views of the Al Badia Golf Club. A popular residential area, its residents include Indians (14 per cent),

Emiratis (12 per cent), Iraqis (11 per cent) and Chinse (8 per cent).

At least 56 per cent of tenants in Al Badia Residences’ phase one and two have converted into owners.

Price (excluding utilities)

For phase three, rents start at Dh143,000 per year for a 1,693-sq-ft, two-bedroom unit and go up to Dh179,000 for

a 2,145-sq-ft three-bedroom unit. The four-bedroom town houses, with sizes starting from 3,849 sq ft, are rented

out for Dh300,000 per year, while a five-bedroom town house with sizes from 5,386 sq ft command rents that

start at Dh325,000.

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Marsa Plaza

Take urban community living to new heights at this luxury residential property with an amazing view of the Dubai

Creek that is second to none. Completed in 2008, the units consist of one- to four-bedders and penthouses. The

architecture is rather sleek for those who enjoy a modern feel to the community.

The building’s blue glass facades echo the colours of the creek. Decked with amenities such as an outdoor

swimming pool, a supermarket, hairdressers, gym and dry cleaners, Marsa Plaza is popular among Emiratis (32

per cent) and Iranians (19 per cent), as well as those from the Indian subcontinent. It is also home to the

InterContinental Hotel Residence Suites, which offers fully furnished residences.

Price (excluding utilities)

A two-bedroom unit with sizes from 1,651 sq ft command an annual rent of around Dh143,000 per year, while

rents for a three-bedroom unit with sizes from 2,675 sq ft start at Dh201,000.

Schools that make a difference

One of the reasons 88 per cent of families own their properties in Al Badia is because of its proximity to two Al

Futtaim Group-owned schools: Deira International School and The Universal American School. Deira International

School runs a British School curriculum and boasts around 1,600 students from 80 nationalities. The Universal

American School sits on a 70,000-sq-m campus and is home to approximately 1,500 students from 75

nationalities.

Source: Gulf News

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DUBAI'S TOP AREAS FOR HOUSE SALES

AND RENTS Wednesday, November 29, 2017

With an abundance of supply and a change in the rental market, the real estate landscape is showing some new

trends this year

It has been a year of change in the Dubai real estate market with new trends, an abundance of supply and a shift

in the rental market. Off-plan sales has dominated this year, accounting for 62 per cent of all transactions thus

far. The handover of some affordable, mid-income properties in areas such as Mira caused a buyer frenzy. With

over 11,800 new residential units entering the market so far this year, many of which deemed as affordable, the

rental market saw a lot of movement and there was also a shift in bargaining power from landlord to tenant.

Top 10 residential areas

Based on the Property Monitor rental database, we highlight in this article the top 10 residential areas for rentals

this year. Emirates Living, Dubai Marina and Downtown Burj Khalifa remain the favourites due to community

amenities and their prime locations. The Palm Jumeirah stays in the ranks for its luxury and beach atmosphere,

and Dubai Sports City is slowing creeping up as being one of the cheapest places to rent an apartment in Dubai.

Arabian Ranches always holds a spot for it’s upscale master plan community with lush greenery, open spaces and

an abundance of amenities. Business Bay has been a favourite due to attractive rental rates next door to

Downtown Dubai.

Remraam has been a success due to the spacious floor plans, sprawling community amenities and it became a

more viable option for many after Hessa street opened last year. Last but certainly not least, Mira was a true

success as it offered a new option for those who were considering Arabian Ranches or Mudon but at a lower

price. This community with over 1,800 town homes filled up quickly as it was in high demand.

Master development

Top 10 residential areas

1 Emirates Living

2 Dubai Marina

3 Downtown Burj Khalifa

4 Palm Jumeirah

5 Dubai Sports City

6 Arabian Ranches

7 Business Bay

8 Remraam

9 Jumeirah Lakes Towers

10 Reem Mira

Source: Cavendish Maxwell

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Top 10 secondary sales for apartments

Lower priced inventory continues to enter the market in locations such as Dubailand and Mira for villas and Dubai

South, Jumeirah Village Circle and Al Furjan for apartments, thus impacting price dynamics for existing

communities. The secondary market is also still trading at premium prices, therefore, transaction levels have been

much lower in the secondary market this year compared with the off-plan market, accounting for only 38 per cent

of all sales transactions so far for this year.

Master development

Top 10 secondary sales — apartments

1 Dubai Marina 1,283 Dh1,641/sq ft

2 International City 1,009 Dh647/sq ft

3 Jumeirah Lakes Towers 675 Dh1,212/sq ft

4 Dubai Sports City 619 Dh820/sq ft

5 Discovery Gardens 533 Dh818/sq ft

6 Jumeirah Village Circle 513 Dh850/sq ft

7 Downtown Burj Khalifa 511 Dh2,416/sq ft

8 Palm Jumeirah 414 Dh2,027/sq ft

9 Business Bay 392 Dh1,494/sq ft

10 Emirates Living 363 Dh1,460/sq ft

Source: Cavendish Maxwell

Top 10 off-plan sales for apartments

Off-plan sales continued to drive residential market activity in the third quarter, accounting for 77 per cent of the

total 8,900 transfers in the third quarter. Prices and accessibility criteria for home mortgage, traditionally the two

biggest barriers for new entrants to the property market, have been lowered, thus resulting in an uptick in market

activity.

Source: Gulf News

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WHAT IS A LUXURY HOME? Wednesday, November 29, 2017

With houses built on the greens of one of the world’s top golfing destinations, Jumeirah Golf Estates (JGE) has

consistently been ranked as one of the most expensive residential locations in the country. Homeowners and

even tenants here certainly don’t mind paying a premium, with one of JGE’s recently launched projects, Hillside,

charging up to Dh24 million for a villa.

JGE, however, has lately been diversifying its residential mix with new projects positioned in the mid-market. The

most recent of which is Jumeirah Luxury, a project by Jumeirah Luxury Living, a joint venture between JGE and

Luxury Living Investments (LLI).

But as Walid Al Dawy, CEO of LLI, explains, Jumeirah Luxury is not about offering low-priced options; it’s all about

giving homebuyers maximum value for their money.

With prices starting at Dh2.2 million, Jumeirah Luxury is not really a huge leap from what is generally considered

affordable. And with that price, homebuyers get a house in a mature golf community with infrastructure and

amenities already in place, along with access to two world-class golf courses. Residents also have a front-view seat

of the annual DP World Tour Championship, the season-ending tournament on the European Tour, which JGE

hosts every November.

“Some villas may be in a golf community, but you don’t see the golf course,” says Al Dawy. “Jumeirah Luxury is in

the middle of the golf course. Other projects don’t even have the golf course built yet.”

Further explaining the development’s pricing strategy, Al Dawy says, “When we designed this district, we designed

the villas in clusters so we can reduce the prices. But we kept all the luxury [elements] and the views.” Al Dawy

adds that the company also decided to “reduce our margins” to offer a more competitive pricing.

Jumeirah Luxury is built on the last available plot for development in JGE’s Fire golf course. Located at the north-

western edge of JGE, Jumeirah Luxury is bounded by the Fire’s hole 5 to the north, hole 7 to the south, hole 6 to

the west and a man-made lake exclusively built for the community to its east. The outer residences, called the

Golf Villas, have direct views of the greens. The interior villas, called the Flower Villas, have garden views. The third

type of residences, called Water Villas, surround the lake and some have direct access to the golf course.

The sub-community also has its own clubhouse, a feature unique to Jumeirah Luxury as the other 15 sub-

communities currently share a single clubhouse.

Al Dawy describes the attached villas and town houses as “smart and sustainable” with lots of sunlight. There are

up to 11 modern designs to choose from, with three-, four- and five-bedroom options. The top-of-the-line villas,

priced over Dh4 million, have a maid’s room and a guest room on the ground level that can be accessed from the

inside and outside. On the first level are the bedrooms. “Each room is like a master bedroom,” says Al Dawy, with

its own bathroom. There is also the “sky bedroom” on the second floor.

The project also features various smart and green elements in the design, including remote-controlled glass

tinting in bathrooms. “We can install the same technology in other areas of the house as an add-on,” says Al Dawy,

who was previously CEO of Al Barari for seven years. “Keeping such things optional helps bring the prices down.”

Speaking of prices, the residences will be attractive to investors as well, says Al Dawy, who has a background in

finance. “The rent for a five-bedroom residence in JGE is high, so the return on investment is high,” he says.

According to the Real Estate Regulatory Agency’s newly updated rent index, rents in JGE range from Dh240,000-

Dh310,000 per year for a three-bedroom unit, Dh300,000-Dh340,000 for a four-bedder and Dh350,000-Dh450,000

for a five-bedder. These values can generate double-digit gross yields of up to 10-14 per cent.

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Excerpts of the interview:

How did you manage to offer such prices?

It’s about the efficiency of the design. We don’t lose any space. We took a really long time to design the layout to

make it really functional.

What are the project’s unique features?

We are incorporating smart technology in each home. You can control your curtains, lights and glass tint in the

bathroom. You can also monitor leaks remotely. We give you a nice garden. We signed with Etisalat Facilities

Management and Dubai Carbon during Cityscape. Dubai Carbon manages the external areas, including the solar

features. Etisalat provides the smart services to the villa owners.

We also have this concept of charging electric cars in the parking area. The infrastructure is ready for this.

Who’s buying the project?

We have from the GCC, India, Egypt and even Japan, the first time we had a buyer from that country. From the

first release, we’ve almost sold 75 per cent as of now.

What’s the current status of the development?

After the DP World Tour Championship — Race to Dubai, we will restart the construction, which is now 20 per

cent complete. As of now, the infrastructure is finished. The lake is there, the greens is there, the garden is there,

and the substation sewerage are ready. It will all come together in fourth quarter of 2019.

Source: Gulf News

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DLD ORGANISES ROADSHOWS IN

MOSCOW, LONDON Tuesday, November 28, 2017

With a mandate to promote Dubai around the world as a preferred real-estate investment destination, the Dubai

Land Department (DLD) organised two roadshows and a number of workshops in Moscow, Russia on November

24 and 25, in addition to two scheduled launches in London, the UK on December 3 and 4.

The initiative aims to familiarise residents of Russia and the UK with the Dubai property market and its real estate

developers. Russian and British nationals are among the top investors in Dubai.

Source: Gulf News

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FUNDAMENTALS OF DUBAI PROPERTY ARE

IN TOP SHAPE Tuesday, November 28, 2017

Dubai's real estate market continues to lead the region in defining trends that then percolate to nearby markets.

Let's investigate these trends by looking at the macroeconomic picture - which delivers a more integrated and

holistic view than what analyses predicated on market fluctuations.

Within the global economy, Dubai maintains its rank as an investment, lifestyle and residential destination. Our

research shows the fundamental drivers that make Dubai an attractive destination have not changed. Dubai is

still widely considered a safe haven with a secure investment environment driven by a robust regulatory

framework. It is a hub for tourism and international travel and the Dubai government is extremely supportive

with world-class, well-directed infrastructure programmes.

When we move on to consider market maturity, indicators are robust there too. Dubai learnt a great deal from

the global financial crisis of 2008 - which impacted an overheated real estate market and led to a rapid cool down.

Today, there are frameworks in place to prevent needless speculation. Investors are being asked for deposits

upfront to prevent off-plan flipping. It's not just the government that has taken proactive steps. Developers,

investors and providers of capital have all learnt a great deal and now prioritise due diligence and comprehensive

contingency planning before entering new projects.

On the demand front, recent reports have suggested price drops in units, potentially linking them to cooling

interest. But our analysis shows this isn't the case at all. Prices aren't dropping due to market movements. Rather,

real estate developers have become far better at offering a diverse mix of developments at different price points

to attract buyers across all categories. Dubai now boasts a more diversified real estate portfolio, which makes real

estate more accessible to different investor preferences and consequently a more sustainable one too, attracting

not only investors but the end-users who prefer to live in their owned home.

We're also witnessing variations in price even within developments - but again, these are according to plan and

not driven by market unpredictability. By offering a pricing spectrum based on design, amenities and location,

developers are increasing choice and creating a better fit between customer preferences and units available in

the market.

Meanwhile, hotel apartments are gaining traction as a preferred investment option as investors capitalise on

Dubai's allure as a tourist destination. The Department of Tourism and Commerce Marketing (DTCM) figures show

a record total of 10.4 million international overnight tourists arrived in Dubai during the first eight months of

2017, an 8.22 per cent increase over the same period last year. The authority's aim is to get 20 million annual

overnight visitors to Dubai by 2020. These visitors require places to stay and furnished hotel apartments provide

a viable alternative to more expensive five-star hotels.

Demand for hotel apartments, and in fact for real estate in general, is also benefitting from the Expo 2020 boost.

HSBC research has indicated that the Expo will create some 350,000 direct jobs, and perhaps up to one million

indirect ones. All these people will need places to stay in the short term and to live long term.

While overall market indicators remain sound, competition has increased. With quite a few new developments

coming up, customers have more to choose from. They are becoming discerning and want value for the money

they spend - particularly in the premium market segment. Customers want a point of differentiation that adds

lustre and helps investments make capital gains. They also look for exceptional quality in Tier A locations.

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Despite seasonal fluctuations, the picture that emerges of Dubai real estate is very positive. A recent ENBD report

has noted that rental yields remain higher than those in most global capitals - making property in Dubai a

genuinely powerful investment opportunity.

Data suggests that apartment yields in June this year were around 7.3 per cent and are averaging around 7.4 per

cent for the first half of 2017. Villa yields are holding steady at an attractive 4.8 per cent for the first half of the

year.

Not only does Dubai real estate outperform most other global destinations, but its generally stable yields also

offer a welcome alternative to the rollercoaster ride that currencies, bonds and equities have taken investors on

over the last few years.

We're forecasting a period of strong performance for Dubai real estate, the impact of which will ripple outwards

to benefit other nearby markets.

Source: Khaleej Times

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WHEN OFF-PLAN SALES DOMINATED DUBAI

PROPERTY Sunday, November 26, 2017

With 2018 just a month away, it's time to do a recap of the year gone by. Off-plan sales and generous payment

plans by developers were the dominant themes in the Dubai property market. The popularity of off-plan sales,

however, came at a price, with the secondary market taking a hit. Although the city witnessed rent declines in

most neighbourhoods, the performance of the sales market was more fragmented.

"The biggest factors that have come out this year are the generous payment plans and offers given by developers

for off-plan units. The market has responded well to this, with off-plan sales going through the roof and

comfortably outnumbering secondary market sales," say Lewis Allsopp, CEO, Allsopp & Allsopp.

Developers launched 30,000 off-plan units in 52 projects so far this year, all to be completed before 2021,

estimates ValuStrat, a consultancy. Some of these plans stretch well beyond handover - payable, in some

instances, even within 10 years after moving in.

"These schemes not only resulted in record transaction volumes as compared to the last two years, but also in

exponentially increasing the share of off-plan transactions when compared to ready property sales, as a result,

delaying an expected near-term secondary market recovery," observes Haider Tuaima, head of real estate

research at ValuStrat.

Off-plan projects now account for approximately 78 per cent of total real estate market transactions in Dubai.

"Transactions in Q1 and Q2 for this year have been flat price-wise, with a small dip in Q3. I expect Q4 to have a

higher volume of sales," says Rida Jaber, luxury sales specialist, LuxHabitat.

In the first 10 months of 2017, total activity (off-plan and ready) has already surpassed the full year of 2015 and

2016. On an annualised basis, it is expected to increase by 32 per cent in terms of volume and 27 per cent in

terms of value.

In terms of total transaction value, Dh37.6 billion was invested in Dubai residential properties during the first nine

months of this year, Dh23.5 billion of which was off-plan, estimates ValuStrat.

The 'suburban' effect is also underway in Dubai. Mid-income areas are starting to mirror the occupancy rates of

more established communities. "For example, the occupancy rates of Jumeirah Village Circle [JVC] and Dubai

Residential Cluster have surged in recent years, mirroring the rates of more mature communities such as JLT and

Dubai Marina," says Hussain Alladin, head of IR and research at Global Capital Partners.

Some families living in high-rise buildings in Dubai Marina and neighbouring areas have opted to shift to

townhouses further east. For example, 90 per cent of all three-bed apartment rentals listed in Dubai Marina are

more or less equivalent in rent to a three-bed townhouse in Arabian Ranches, The Springs, JVC, Al Furjan and

Mira.

Although most market players expected the Dubai residential market to bottom out in 2017, a clear direction on

sales price trend is yet to emerge. The sales market continues to diverge with different areas responding to varied

set of supply and demand drivers.

"Most locations are witnessing price softening or flattening, some noticing a double dip after a brief period of an

uptick, while a few show steady but slow recovery. The ready sales market is relatively robust with a large share of

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the demand coming from end-users while off-plan products remain a preferred option for investors," explains

David Godchaux, CEO of Core Savills.

Rental contractions

Widespread rental contractions have been evident throughout 2017 in Dubai. However, as sales prices have

generally not dropped at the same rate, yield compression has been witnessed across most areas and is expected

to continue in 2018.

"In the past 18 months, we have witnessed that prices have remained flat lined but rents have decelerated,

causing city-wide yields to decline from nine per cent to seven per cent. Although, this maybe startling at first, it is

in line with international markets," adds GCP's Alladin.

"As the Dubai real estate market matures and volatility declines, investors must be cognizant that capital

appreciation gains will be in the single digits going forward compared to the previous cycles, making their

investment term much longer. In addition, they will have to recalibrate their expectations lower of rental returns

as the Dubai market begins to come in line with more developed markets such as the US and UK," Alladin adds.

The luxury sales market fared well, with some record-breaking transactions this year, which include an Emirates

Hills villa sold for Dh95 million and the penthouse at One Palm sold for Dh102 million.

"These are signs of a healthy market. Prices for mansions and penthouses are relatively inelastic. End-users are

now looking at locations that are new, properties they can renovate and then resell, branded apartments such as

Bvlgari as well as shell-and-core villas. There has been an increase in the average price for transactions. The

average transaction prices for villas and penthouses are at Dh12 million," adds LuxHabitat's Jaber.

ValuStrat says rents saw a 10.5 per cent decline in Dubai. Compared to the same period last year, rents were

down 11 per cent for apartments and 9.2 per cent for villas.

"Landlords have become more accommodating in reducing rents for existing tenants approaching lease renewal.

The softening of market rents was mostly due to substantial supply of new units as overdue projects are

completed and handed over. Residential rents are expected to stabilise in the medium term, given increased

demand stemming from population growth," adds Tuaima.

It is now possible for most tenants to upgrade to a better location or better unit for the same rent due to the

ongoing rental softening across most communities. A few landlords are also willing to consider more cheques,

one-month free and even putting white goods in to properties.

Source: Khaleej Times

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HOW THE YEAR 2017 PANNED OUT FOR

DUBAI PROPERTY Sunday, November 26, 2017

Dubai witnessed an upsurge in both ready and off-plan sales this year, with overall property transactions until

September totalling to more than 50,000, according to the Dubai Land Department (DLD). Heightened off-plan

sales, lower priced inventory, efficient unit sizes and yield compression are the key factors that summarise the

2017 Dubai real estate market.

Off-plan sales

Off-plan sales continued to drive residential market activity in the third quarter, accounting for 74 per cent of the

total number of transfers (6,350 in total). Until date, off-plan sales have amounted to 68 per cent of the total

transactions in 2017, of which over 80 per cent were apartment sales. Thus far in Q4 (October 1 to November 15),

off-plan transactions in apartments and villas/townhouses stand at 2,515 and 235 respectively, with Serena,

Mohammed bin Rashid City (MBR), Al Furjan and Dubai Healthcare City being the top four destinations where

these transactions occurred. The current momentum in sales activity is driven by a larger proportion of end-users

than before, particularly first-time buyers.

Lower priced inventory

In 2017, residential property transaction prices have traded within a close range of Dh1.25 million to Dh1.5 million

for apartments and Dh1.7 million to Dh2.1 million for villas/townhouses on average. Most of the off-plan sales in

October had occurred for studios, one-bedroom and two-bedroom apartments, with the prices for these

averaging at Dh600,000, Dh940,000 and Dh1.6million, respectively. In areas like Al Quoz, Dubai South and

Downtown Jebel Ali, studios are being traded at a price less than Dh500,000 and in International City, the cost of a

two-bedroom apartment is Dh719,000, both below the market average.

Lower priced inventory continues to enter the market in locations such as Dubailand and Arabian Ranches 2 for

villas/townhouses and Dubai South, Jumeirah Village Circle and Al Furjan for apartments, thus impacting price

dynamics for existing developments.

Unit mix and sizes

Developers are launching more efficient unit sizes to keep ticket prices attractive, along with offering incentives,

such as DLD fee waivers and aggressive payment plans. The majority of the new plans on offer are structured

with post-handover payments, such as 40/60, 25/75 schedules where the buyer pays a lower amount upfront, and

only pays the larger amount upon completion. Since the secondary market is selling at a premium, buyers shifted

to off-plan purchases of units with smaller sizes. For instance, in Al Furjan, over 60 per cent of the off-plan

apartment transactions in October have occurred for unit sizes less than 500 sqft, while less than six per cent of

sales have occurred for unit sizes between 1,000 sqft and 1,500 sqft. Similarly, in the case of villas at Serena, the

number of off-plan transactions between July and October has reduced by almost 10 per cent for plot areas

greater than 2,500 sqft, whereas there has been a 20 per cent increase in sale of plot areas with sizes between

2,000 sqft and 2,500 sqft.

Yield compression

According to the Property Monitor Index, 12 month change in prices for key communities in Dubai registered

marginal declines of 1.45 per cent for apartments and 1.29 per cent for villas/townhouses as of September.

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During this period, Downtown Burj Khalifa and Silicon Oasis experienced the most severe price declines for

apartments and villas/townhouses, respectively. Prices in established communities with limited upcoming supply

have held stronger than emerging locations even as marginal price declines continued in Q3. Rent declines for

residential properties in Dubai have been more pronounced than price declines over the last 12 months.

According to the Property Monitor Index, rents in Dubai have declined by 3.4 per cent for apartments and 4.7 per

cent for villas/townhouses on average, during this period. Key areas like Dubai Sports City, Downtown Burj Khalifa

and DIFC have experienced up to a four per cent decline in rents, closely followed by Jumeirah Beach Residence

(JBR) and Business Bay with a three per cent decline. This has resulted from a combination of factors, including

new project handovers, especially of lower priced inventory, as well as readjustment of salaries and job losses in

some key sectors.

The greater decline in rents rather than in prices has created yield compression in the market and this is expected

to continue heading into 2018. The 12-month fall in apartment yields has been more pronounced than that of

villa/townhouse yields. Apartments yields fell severely in JBR, Jumeirah and Business Bay, whereas in Mudon,

Palm Jumeirah and Arabian Ranches, villa yields declined considerably. In addition, different unit types in the

same location are now operating at different yields.

Source: Khaleej Times

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DUBAI PENTHOUSE OR VILLA? FOR

DH23.6M YOU CAN GET TWO IN ONE - IN

PICTURES Tuesday, November 28, 2017

Picking a new house when you have more than Dh20 million to spend can be tricky - not because of a lack of

funds but because of the choice.

One of the decisions, if buying in Dubai, will be whether you want to have the stunning views a penthouse offers,

or the more grounded but likely larger space that a villa offers.

But what if you can have both options within the same property?

Thanks to a new development, Hillside at Jumeirah Golf Estates, you can have exactly that.

With prices starting at Dh23.6m, the collection consists of just 20 properties on an elevation at the centre of the

estate, overlooking the Earth course which just hosted the annual DP World Tour Championship.

Golf fans won't even have to leave their home for a slice of the action - with even better views from up in the

penthouse.

These villas are set over four floors with double and triple height ceilings, according to the developer.

The basement level has room for five cars, while there is also space for a games room.

The ground floor has an open-plan living area and a guest bedroom, and then the first floor has a further four

bedrooms - all en-suite - a family room and an outdoor terrace.

On the third floor is the "penthouse", which contains its own lounge and kitchenette, plus two outdoor terraces.

So if guests require any privacy, or family require an extended stay, there is the option of a self-contained living

area with picturesque views as an added bonus.

For those who fancy themselves as the next Rory McIlroy, or just like to be out on the grass, residents have access

to the two golf courses and the Jumeirah Golf Estates clubhouse.

Source: The National

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EXPO 2020 DUBAI SAYS DH10BN OF

CONSTRUCTION CONTRACTS AWARDED

THIS YEAR Sunday, November 26, 2017

A total of Dh10.8 billion worth of construction contracts for Expo 2020 Dubai have been awarded this year, as well

as Dh411 million of non-construction contracts, organisers said, adding that the mega-event is on track to award

Dh11bn of construction-related tenders by the end of 2017.

“This has been a significant year on the journey to Expo 2020 Dubai and we are excited to continue our progress

into 2018, which will see us offer further opportunities to companies in the UAE and wider region,” said Manal Al

Bayat, the senior vice-president of business development and integration at Expo 2020 Dubai.

Dubai will host the World Expo 2020 at a 4.38 square kilometre site currently under construction in Dubai South,

an economic free zone close to Al Maktoum International Airport and Jebel Ali Port.

Organisers said on Sunday that preparations are “on track”, with Expo 2020 Dubai having exceeded its pledge of

distributing Dh360m of non-construction contracts in 2017. Small and medium-sized businesses (SMEs) received

more than 50 per cent of contract awards this year, the organisation has said.

Meanwhile, a target announced in January to award Dh11bn of construction contracts by the end of the year will

have been reached once certain urban planning and event overlay packages are finalised. Among the tenders

awarded this year was a Dh353m contract to build the UAE's showcase pavilion, snapped up by the Dubai

contractor Arabtec Holding’s construction arm.

There are currently 12 cranes operating on site and a further 10 will commence over the next month as new

sections break ground into 2018.

Sectors to offer procurement opportunities next year include design, logistics, health and safety, construction and

construction materials. The total number and value of these will be announced in the coming months, organisers

said.

The majority of "outer" construction work at the Expo site is due to be finished by October 2019 and countries’

exhibition pavilions by the end of the first half of 2020. The huge exhibition opens in October 2020 and continues

for six months until April 2021.

Expo 2020 Dubai hopes to attract 25 million visitors over the course of the event.

Source: The National

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DUBAI LAND SALES SAID TO SOAR BY $8BN

SINCE 2012 Friday, December 01, 2017

The value of annual land sales in Dubai has risen by AED30 billion ($8.17 billion) over the last five years, with

Business Bay identified as a key area for further growth, according to new research.

fäm Properties, one of the emirate’s biggest real estate brokerages, said land sales for this year so far has reached

AED68 billion compared to AED38 billion for the whole of 2012.

Firas Al Msaddi, CEO of fäm Properties, said: “Since 2012, particularly in the Business Bay area, we’ve witnessed a

definite upward trend for both the value of land transactions and the size of plots being bought.

“Over the past five years, Business Bay has seen an increase from AED482 million to AED3.3 billion. At the same

time, the total area of land sold has grown from 731,000 sq ft to 2.5 million sq ft.”

He added: “Business Bay has witnessed enormous improvements recently and the opening of the new canal

extension has freed up the area for a new range of developments. The new developer we’re working with there

sees great opportunities in Dubai, and their first investment here will ultimately be worth upwards of AED700

million.”

Underlining a growing land-for-development shift by investors, Al Msaddi said his company has just sold a

AED150 million plot in Business Bay to a developer new to the Dubai market.

They are now working together to develop a residential tower on the 500,000 sq ft plot in a deal which will

ultimately be worth more than AED700 million.

Over the past few years, fäm Properties said it has transacted land sales in Dubai worth more than AED3 billion.

Associate partner Tarek Bou Karroum added that the growing demand for specialist land advisory services is a

sign of how the market is maturing.

“Market conditions since 2014 have made it impossible to buy and sell land for profit in the short term, and the

emphasis has shifted from speculation to developing plots as a long-term investment,” he said.

Recently, fäm Properties said it topped AED1.6 billion in residential property sales at City Walk, the new

destination developed and managed by Meraas in the heart of Jumeirah.

Source: Arabian Business

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THE SANCTUARY: AN OASIS OF CALM IN

THE MIDDLE OF THE CITY Wednesday, November 29, 2017

Gulfstream UAE are close to launching one of the most exciting new communities in Jumeirah Village "The

Sanctuary"; phase one consists of 355 units designated as Haven Apartments at "The Sanctuary".

Gulfstream as a team bring to the table a broad range of expertise in design, construction and management. The

Gulfstream management team have been in involved in the design and delivery of landmark real estate projects

in Dubai including the Grand Hyatt hotel and Twin Towers on Dubai Creek.

Sebastian Carlton (Gulfstream UAE CEO) explains that Gulfstream’s focus, leading up to the Dubai Expo, will be to

focus on delivering premium residential housing in niche locations for the local and expat market.

Sebastian Carlton explains that Gulfstream is delivering a project in Jumeirah Village that is quite unique, in that it

brings together several plots in to one cohesive gated community.

The Sanctuary consists of ground and four storey apartment buildings, as well as ground and two storey villas.

The project, "Haven Residences", forms part of "The Sanctuary" Project in Jumeirah Village and offers a selection

of studios, one-and two-bedroom apartments and three-bedroom villas.

Phase 1 is under construction, comprising 355 units and scheduled for delivery in March 2019,

www.thesanctuaryuae.com.

Sanctuary show homes are well advanced and will be ready for fit out Spring 2018; see www.gulfstreamuae.com.

Sebastian Carlton highlights the Gulfstream USP as being able to deliver exceptional design and finishes within a

value driven product and that this is unique for Dubai; one key to this is the fact that Gulfstream UAE have an

exclusive partnership with Louise Bradley (www.louisebradley.co.uk) one of Europe’s most highly regarded

Interior Designers.

Louise Bradley has curated the interior design and architecture aspect of Haven Residences from her London

based design studio and impressively Louise has delivered Interior Design and Architecture for many prominent

and royal families in the Middle East and Europe.

Sebastian Carlton is convinced that the quality of the design and finishes of their Haven offerings, will provide

them with a competitive advantage; Haven Apartments for example have fully fitted European Kitchens and

bathrooms and come with bespoke fitted joinery.

Sebastian Carlton is excited about the Dubai real estate market as he is convinced that we are now witnessing

one of the few maturing markets In the GCC and that when one compares the value of property acquisition in the

UAE against other geographic hubs such as Hong Kong and Singapore that there really is no comparison in value.

Gulfstream UAE are committed to designing and delivering cohesive communities, resplendent with landscaped

gardens, swimming pools, spa and gym facilities; a destination where families live and grow together holistically.

The Sanctuary is unique for Jumeriah Village in that it is designed and planned over a land area of almost 7 acres

of beautiful landscaped gardens and facilities.

Gulfstream UAE hold sufficient land assets to be able to deliver over one thousand residential units, based on

"The Sanctuary" theme, over the next 5 years.

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Gulfstream are also mindful however of corporate responsibility in the community and to this end, Sebastian

Carlton the Gulfstream CEO, highlights the fact that they have recently established The Gulfstream Foundation, a

charitable foundation focusing on need; a foundation that does not discriminate on religion, race or creed.

Gulfstream has pledged 10% of the company’s profits to the Foundation, on the basis that these monies must be

used to provide aid and relief for qualifying causes worldwide.

The Gulfstream Foundation has already identified as critical the regional crisis in respect to refugees and is

engaging with and partnering charities that are already mobilised in this area such as Save the Children, Médecins

Sans Frontières, Red Crescent and UNICEF.

Source: Arabian Business

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CENTRAL PARK TOWERS AT DIFC ATTRACTS

STRONG PORTFOLIO OF OFFICE AND

RETAIL TENANTS IN 2017 Wednesday, November 29, 2017

The commercial leasing market in the UAE has witnessed a challenging year. Despite this, many areas in Dubai are

seeing positive leasing results which have given the industry a renewed sense of optimism and Central Park

Towers at DIFC has witnessed positive leasing results as we approach the end of the year.

Central Park Towers has announced 2 key tenants moving into the development in early 2018. Marriott

International’s regional office for Middle East and Africa have secured space comprising of 84,831 sq. ft. and is

expected to take occupancy in early Q2 2018. This agreement represents one of the biggest office deals of 2017 in

Dubai.

Marriott International will also be the first company with a dual license in the free-zone, operating with both an

on-shore and off-shore licenses. The second key tenant to lease at the property will occupy total space

comprising 62,533 sq. ft. This brings the total take up of office space at Central Park Towers in 2017 to in excess of

250,000 sq. ft.

With the addition of our new tenant, Marriott International, to complement our existing international tenants

such as Merck Serono, Bank of Singapore and HDFC, we move into 2018 ready to meet the requirements of other

comparable companies. Our retail space is expanding quickly, forecasting 75% occupancy by the end of the year.

We have attracted a number of unique retail, service and F&B tenants, who have understood our vision to build a

strong community at Central Park Towers and have chosen us over other locations in Dubai.

Central Park Towers is home to some well-known brands like Spinneys and Starbucks, as well as unique and new-

to-Dubai brands such as Barry’s Boot Camp, a popular American fitness franchise; Fogo de Chao, a Brazilian

steakhouse brand from the USA; Café Frei, an international coffee house; Nina’s Boutique, a niche floral design

company, Bombay Shirt Company, bespoke shirt tailoring and Poke & Co, a trendy healthy eatery.

We will also welcome new and established concepts such as Krave, Gallus Rotisserie and Mama’esh to our retail

community as well as one of the largest Starbucks outlets in Dubai.

Source: Arabian Business

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A BIG-NAME PROJECT’S PULLING POWER Wednesday, November 29, 2017

While this month’s opening of the UAE’s newest icon, Louvre Abu Dhabi, is expected to add vigour to the country’s

tourism efforts, stakeholders in real estate are hoping the positive sentiment will have a knock-on effect on

property. It is still too early to tell how rents and prices in the Saadiyat neighbourhood will react to the Louvre’s

opening, but real estate consultants expect a boost, in the same way landmark projects such as the Burj Khalifa

pushed demand for nearby properties.

But comparing the Louvre to the Burj Khalifa would be a bit like comparing apples to oranges. “Comparing the

two areas really isn’t fair as they cater to different segments of the population and offer very unique and different

lifestyles,” says Faisal Durrani, head of research at Cluttons.

Saadiyat offers a suburban beach lifestyle and Downtown Burj Khalifa a buzzing city lifestyle. But will the Louvre

attract buyers as what the Burj Khalifa, Dubai Opera and Dubai Mall have done in Downtown Dubai?

“The Burj Khalifa is the world’s tallest building, it has an established infrastructure and is anchored by the world’s

largest shopping centre. Emaar has done a spectacular job in branding and marketing it as the ‘centre of now’ and

it is also an exceptionally desired part of the city because of its connectivity to both old and new Dubai,”

elaborates Durrani. “The two sub-markets are very different from each other, and whether the Louvre will drive

property prices and rents up depends on what else is planned for Saadiyat Island in terms of its infrastructure,

both for transport and the community, and the creation of a desirable place to live.”

Nonetheless, Durrani says finding buyers is generally not a big hurdle for big-name projects from reputed

developers, citing the response to the Emaar’s Dubai Creek Harbour, where Emaar is creating another major

destination from scratch.

“We have seen that people are willing to pay a premium for a view of something iconic,” says Durrani. “Sales

prices have varied between Dh1,600 and Dh1,800 per square foot at Dubai Creek Harbour, which is cheaper than

Downtown, but still reasonably high for off-plan property.”

He adds: “It would be interesting to see if property buyers in Abu Dhabi think similarly when looking to own a

home in the vicinity of the Louvre.”

Manika Dhama, senior consultant, strategic consulting and research, at Cavendish Maxwell, also points out that

there are other factors affecting prices in Downtown Dubai, such as the Dubai Mall and its central location close

to key business districts such as the Dubai International Financial Centre.

“The area commands among the highest rents and prices in the UAE as a result of having a concentration of

multiple premium factors within a limited area,” says Dhama. “By contrast, Saadiyat Island is a spread-out cultural

district with beachfront properties, including Saadiyat Beach Residences and Villas. The addition of the Louvre to

Saadiyat is expected to help maintain a superior profile for this area. However, direct impact on prices and rents

remains to be seen.”

Matthew Green, director and head of research and consulting, UAE strategic advisory, at CBRE, has no doubt the

Louvre will gradually elevate prices and make Saadiyat an even more compelling investment destination.

“However, for now Abu Dhabi’s residential market continues to be affected by the soft economic conditions, which

has driven widespread deflation of both sales and rental rates over the past two years,” says Green. “As a result

there is a growing price gap emerging between the two emirates, with rates falling far quicker in Abu Dhabi, while

values in Dubai have only seen modest declines during the same period.”

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Pricing

Cluttons’ research has shown buyers paying premiums of between 30 per cent and 40 per cent to get a view of

the Burj Khalifa in Downtown Dubai, with residential values around the Burj Khalifa hovering between Dh1,800

and Dh2,000 per square foot. The Burj Khalifa itself commands values in excess of Dh2,500 per square foot.

CBRE has recorded average sales rates in the Downtown Dubai area close to Dh1,700 per square foot. “However,

sales rates in the Burj Khalifa tower and the various serviced apartment offerings in the wider master plan

command significantly higher values,” says Green.

According to the Property Monitor Index, two-bedroom apartment prices in Downtown range from Dh1,650-

Dh2,800 per square foot on average, and Dh1,480 per square foot for a similar unit on Saadiyat.

“Prices in both locations vary by project and development under consideration,” says Dhama.

In Abu Dhabi, the most sought-after locations are those along the coast, such as the Corniche area, which is

extremely desirable because of its proximity to iconic developments such as Etihad Towers and Emirates Palace,

according to Durrani.

“The Louvre could potentially cater to people who want to live in more suburban locations, offering bigger plots

with individual houses and villas, which may lend itself to becoming a more attractive living destination in the

years to come,” says Durrani. “Average residential capital values here stand at roughly Dh1,450 per square foot,

so about Dh500-Dh600 cheaper than Downtown Dubai.”

Pointing to a Cluttons report, Durrani says Abu Dhabi’s economy is intrinsically linked to the hydrocarbon sector,

which has been a critical engine of growth for a range of supporting and related economic segments, each of

which play a key role in creating fresh demand for both residential and commercial property in the emirate.

“The first six months had seen the continued lacklustre performance of residential values in Abu Dhabi’s main

residential investment areas, with values overall dropping by 0.9 per cent during the second quarter,” says

Durrani. “The seemingly slower rate of decline improved the annual change to 6.3 per cent in the 12 months to

the end of June, from 7.5 per cent at the end of the first quarter. This latest change now leaves average residential

values standing at just over Dh1,150 per square foot.” CBRE sets the average price of apartments in Saadiyat at

around Dh1,400 per square foot. In other words, Saadiyat already clearly trumps average pricing in Abu Dhabi.

Rents

“In terms of rents, two-bedroom apartments in Downtown range from Dh100-Dh140 per square foot per year,

while in Saadiyat rents for two-bedders average Dh95 per square foot per year,” says Dhama.

Durrani points out that rental prices for apartments in Downtown are more expensive than those in Saadiyat.

“That said, the nearest communities to the Louvre include the beach residences and villas, which tend to attract

the highest property prices in Abu Dhabi,” he says.

The future

“Both locations are prime areas and this profile is expected to be maintained going into 2018,” says Dhama.

“Downtown Dubai has been among the top locations for off-plan transactions this year and is expected to remain

a popular choice for buyers going forward.”

On the other hand, Green reckons that the gap between the two markets is likely to widen. “The two emirates are

seeing varying performances at this time, with Abu Dhabi forecast to see further downside to rentals and prices

during the course of 2018,” he explains.

Source: Gulf News

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ITINERA GHANTOOT NAMED LEAD

CONTRACTOR FOR REEM MALL Monday, November 27, 2017

The Reem Mall consortium on Monday announced the appointment of Itinera Ghantoot, a UAE-Italy joint venture,

as lead contractor on the $1.2 billion (Dh4.4 billion) shopping, leisure and entertainment project in Abu Dhabi.

The project is being developed by Al Farwaniya Property Developments, a partnership between three Kuwait-

based companies including Agility, United Projects for Aviation Services Company (an Agility affiliate), and the

National Real Estate Company.

The group backing Reem Mall announced on November 21 that it had signed a $457 million senior credit facility

to complete financing on the project, a mega-mall of 450 stores and food and beverage outlets spread over 2.9

million square feet in the Najmat District of Reem Island.

Source: Gulf News

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UAE'S MANAZEL SET TO HAND OVER ABU

DHABI VILLAS Sunday, November 26, 2017

UAE-based developer Manazel Real Estate has announced that the first phase of its Al Reef 2 development in Al

Samha, Abu Dhabi is nearing completion.

The company said in a statement that completed villas are scheduled to be handed over by the end of 2017.

Currently, 95 percent of villas are now sold with the construction project now 70 percent complete, it added.

Al Reef 2, which started development in 2016, consists of 860 duplex villas across four residential neighbourhoods

with a central hub offering community facilities such schools that will accommodate approximately 1,500

students, retail outlets for shopping and dining, clinics and public parks. The retail area will host around 30 shops.

The concrete skeleton of all villas are now built and the project has been registered with the Abu Dhabi City

Municipality.

"The successful sales of Al Reef 2 have contributed significantly towards Manazel’s on-going profitable growth to

date," Manazel said.

Manazel’s chairman, Mohamed M Al Qubaisi, said: “Over the past year, we have been focused on accelerating

construction on Al Reef 2 in order to deliver the project to our investors in a timely manner. With development of

the first phase of the project being finalised, we will hand over the first phase of villas by the end of 2017."

The handover follows on from the Al Reef 1 which now houses 17,000 residents.

Source: Arabian Business

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FORUM TO DISCUSS GROWTH OF SHARJAH

HOSPITALITY SECTOR Tuesday, November 28, 2017

Sharjah will host the 4th Hospitality Industry Forum on 4 December 2017 at Sharjah Chamber of Commerce and

Industry (SCCI), bringing together experts and professionals from hotels, resorts and across the emirate’s

integrated tourism system. The one-day event, organised by Sharjah Commerce and Tourism Development

Authority (SCTDA), will discuss the latest developments in the hospitality sector at local, regional and international

levels.

Speakers at the Hospitality Industry Forum will include leading tourism experts such as H.E. Gerald Lawless,

Council Chairman of the World Travel and Tourism Council and Doug Lansky, global tourism advisor to leading

countries, destinations and tourism-based companies. Lansky will deliver two talks: ‘Innovation in the

development of the travel industry’ and ‘Innovative Marketing Strategies‘.

According to SCTDA, Sharjah’s hotels enjoyed a 70 percent occupancy rate from January to June this year and

registered a total of 885,000 hotel guests during the period. China, India, Oman, Russia and Saudi Arabia were the

biggest inbound tourism markets for Sharjah during the first half of 2017. Russian guest numbers doubles during

the first half of 2017, with a total of 106,693 Russian guests staying in Sharjah hotels during the first six months of

the year, compared to 54,017 guests during same period in 2016.

Sharjah’s hotel industry continues to expand across multiple segments of the business, fueled by growth in

revenues and development of the tourism sector. The emirate currently boasts more than 100 hotels and hotel

apartments, including properties managed by some of the leading hotel groups in the world including Carlson

Rezidor Hotel Group, Hilton Hotels and Resorts, Louvre Hotels Group, Premier Inn Hotels, Rotana Hotels and

Resorts, Sheraton Hotels and Resorts, and Wyndham Worldwide.

This year, Sharjah has seen the opening of Louvre Hotel Group’s 180-room, theatrically-themed Royal Tulip Act

Hotel in Al Majaz waterfront area and Flora Group’s 110-room Sharjah International Airport Transit Hotel. Al Bait

Hotel, a luxury five-star hotel with 53 luxury suites located in the Heart of Sharjah heritage area, plus Sharjah’s

first Four Points by Sheraton are both expected to open during the first few months of 2018.

Sharjah plans to attract 10 million tourists by the year 2021.

Source: Sharjah Update

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SHARJAH RULER APPROVES 3.3KM CITY

BEACHFRONT DEVELOPMENT Sunday, November 26, 2017

His Highness Dr. Sheikh Sultan Bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, has

approved the Sharjah Beach Development Project, which will create 3.3 kilometres of pedestrian areas,

landscaping, sports facilities and public services along Sharjah city’s beachfront parallel with Al Montazah Road.

The project falls under Sharjah Urban Planning Council’s (SUPC) strategic plan for developing the city of Sharjah

and is expected to turn the city’s beachfront into a world-class tourism destination. The first phases of the project

are expected to be delivered in the third quarter of 2018.

The Sharjah Beach Development is the second waterfront project announced by SUPC this year. In June, the

council launched the Sharjah Waterfront Bicycling and Jogging Path project, a 27 kilometre track that will

ultimately link Ajman and Dubai via Sharjah city. The first phase of the project will include bicycle and jogging

paths alongside Al Majaz Waterfront, a popular urban leisure destination in the city centre.

Shajrah has put wellbeing and quality of life at the top of the emirate’s urban development agenda, spearheaded

by SUPC. The council’s research-led strategy has so far resulted in a number of projects designed to develop a

more sustainable city infrastructure for residents and visitors, enhancing Sharjah’s appeal as an ideal place to live.

SUPC is currently working closely with other government departments on the Sharjah Beach Development

project.

The SUPC expects that the unique design of the Sharjah Beach Development will make it one of the most popular

leisure destinations in the emirate, appealing to both residents and visitors. Sharjah aims to attract more than 10

million tourists to the emirate by year 2021.

Sharjah joined the WHO Healthy Cities programme in 2012, to help foster innovation and change to promote

public health, well-being and community resources. Sharjah city was officially accredited as the Middle East’s first

WHO Healthy City in 2015, recognising efforts to continually create and improve both physical and social

environments.

Source: Sharjah Update

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US EAST COAST REALTY OPTIONS FOR GCC

INVESTORS Wednesday, November 29, 2017

Do you associate top-tier cities in the US East Coast, such as Boston, New York, Philadelphia, Baltimore,

Washington and Miami, with only great education institutions? Well, interestingly, besides hosting several Ivy

League colleges, these cities now present great opportunities to invest in property as well. There has been an

interest in this area from the Middle East, not just from outright property investors, but also from wealthy parents

who plan to send their children to top US universities here. Not only do they want their wards to have a proper

home to live in during their college years and probably stay on if they want to, they also prefer to have the option

to rent the home out or use it as an overseas residence.

Looking at the macro-economic conditions, the time frame may be well chosen to acquire such property now.

Over a decade after the 2006 housing market crash in the US, average home prices have recovered almost all

their losses, but when adjusted for inflation they are still 20 per cent below the 2006 peak. In the aforementioned

mentioned top-tier cities, they seem to be coming closer to fair value when compared with their long-run median

prices in the near future.

According to Benjamin Keys, a professor at Wharton School, the business school of Philadelphia-based University

of Pennsylvania, a full recovery of house prices is to be expected by 2025, although this depends on location and

the further development of interest rates and income growth.

“A few other factors that are correlated include population growth and job growth,” Keys said, indicating that real

estate in top-tier cities are expected to play out their full potential the fastest.

Ralph McLaughlin, chief economist of Trulia, one of the largest online residential real estate brokerage firms in the

United States, said that the East Coast, along with the West Coast, will be the two areas first to catch up.

“Industries that drive the East Coast continue to be centred on the financial sector, whereas in the West the

primary focus is on the technological sector,” McLaughlin noted. “But there is a heavier focus on education in the

East with a large concentration of Ivy League institutions on that side of the country. By and large, both of these

areas in the US have strong economies and are leaders in terms of economic trends. This means when the

country experiences an upswing, both the West and East Coasts will be the first to trend up.”

Focusing on tertiary educational institutions, PW looked at new premium residential developments in three East

Coast cities, namely Boston, New York and Miami. They host top varsities such as Harvard University,

Massachusetts Institute of Technology, Boston University and nearby Cambridge University (Boston), Columbia

University, New York University and Cornell University (New York), as well as the University of Miami and the

Florida International University (Miami).

Boston

Boston currently experiences a notable upscale development with the One Dalton Street tower, which will be not

just the city’s, but entire New England’s tallest primarily residential tower when completed around the end of next

year. The tower, officially named Four Seasons Hotel & Private Residences One Dalton Street and built by

Massachusetts-based real estate developer Carpenter & Company, will have 61 floors over a height of 226m and

comprise 160 luxury condos on floors 26 to 61, as well as Four Seasons’ 215 hotel rooms on the lower floors.

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The tower is marketed by Campion & Company, one of Boston’s boutique real estate agencies. Top units include

duplex penthouses and penthouse flats starting from floor 55, of which just a few are left for sale. The top four-

bedroom, 678-sq-m units have recently been priced at $40 million each, which made them the most expensive

properties in the city, surpassing former records by $5 million.

According to a Carpenter & Company spokesperson, the strengthening property market in Boston can be

attributed to an influx of investment in the city from some of the world’s most influential companies, including

Amazon, IBM and General Electric, which have all recently relocated or expanded their operations to the city.

Furthermore, it helps that Boston has been ranked number three behind Los Angeles and London and ahead of

Chicago and New York in this year’s Schroders Global Cities 30 index, which measures the overall potential of a

city based on a range of factors, including the projected growth of the economy, disposable incomes,

infrastructure and amenities, education opportunities and population growth over the next decade.

“Boston saw one of the biggest leaps in the index going from 24th place to third place after this year’s

methodology included university rankings,” said Hugo Machin, co-head of global real estate securities at

Schroders. “Universities are critical in powering city economies, as innovation and education provide a better

trained, more productive workforce. Knowledge-based hubs are growing in economic strength with a positive

knock-on to real estate markets in those locations, and such strong city economies have the potential to provide

superior investment returns.”

New York

From Schroders’ list, New York would be the next city with the highest potential on the East Coast, being ranked

fifth. The most populous city in the US held onto its ranking from last year, indicating stability in its economy and

investment climate and a healthy and high-yield real estate market.

Among current upscale property developments, there are two that caught PW’s attention. One is the colossal

Hudson Yards development, which describes itself as the largest private real estate development in the history of

the US and the largest development in New York City since the Rockefeller Centre. It is a huge mixed-use

development that will span over 11.3 hectares on Manhattan’s West Side and include more than 1.67 sq km of

commercial and residential space, more than 100 shops and a collection of restaurants, as well as offices and

residences in six towers named 10, 15, 30, 35, 50 and 55 Hudson Yards. There will be luxury residential units in

towers 15, a residential tower with 285 one- to four-bedroom apartments overlooking the Hudson River, and 35, a

mixed-use building. Tower 15 rises 88 storeys and is the first condominium opportunity in Hudson Yards. It is

expected to be completed next year.

To get an impression of prices in 15 Hudson Yards, penthouse 88B was recently unveiled as the first of the

building’s four duplex penthouses that came to market. With a price tag of $32 million (Dh117.53 million), the

four-bedroom unit occupies one of the four arcs at the crown of the building and measures 480 sq m.

According to one of 15 Hudson Yards’ brokerages, The Corcoran Group, the tower has sold close to 100

residences since launch in mid-September 2016, outpacing all other new Manhattan residential developments.

Sales in the building average nearly $5 million per unit, according to Ryan Schleis, vice-president of research and

analytics of The Corcoran Group.

“15 Hudson Yards quickly became one of the fastest-selling buildings of 2016, with more signed contracts than

any other new construction development in Manhattan,” says Schleis. “Its sales success is a testament to the deep

market for the most exciting properties in New York, such as Hudson Yards’ unique combination of integrated

lifestyle, superlative amenities, beautiful architecture and interiors. With an average sale price of nearly $5 million,

buyers are responding well to all of the property’s diverse unit sizes, from one to four bedrooms.”

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Certainly adding to that lifestyle offer is a rooftop lounge and garden, which will be the highest residential

outdoor space in New York City when the tower eventually opens. And, Columbia University is just a 30-minute

taxi or subway ride away.

Another new luxury option in New York that also has a unique design feature is the 53W53 tower, a 320m

structure rising above the city’s Museum of Modern Art on 53 West 53rd Street in Midtown Manhattan. 53W53

was designed by renowned architect Jean Nouvel and its interiors are courtesy of architect and interior designer

Thierry Despont, known for his mastery of exceptional private residences and some of the most luxurious hotels

in the world.

The building will comprise of 145 units when completed in 2018, ranging in size from one to five bedrooms, the

most exclusive of them being full-floor homes and duplex penthouses with private elevators. Amenities include a

wellness centre spanning more than 1,500 sq m, two large vertical gardens framing a large swimming pool,

library, theatre and dining lounge for residents overlooking the Central Park. The five lower floors will be an

extension of the Museum of Modern Art, so that both structures unite.

According to New York City real estate brokerage Streeteasy, the current price range for a unit in 53W53 spans

from around $3.5 million for a smaller condo of around 150 sq m to a full-floor penthouse on the 65th floor with

over 599 sq m at $43.95 million, based on current active listings, which show that 67 units have already been sold

at an average price of $9.5 million.

Miami

For those who prefer a warmer climate, there is an exclusive option in Florida, The Surf Club Four Seasons

Residences, located on the grounds of Miami’s historic Surf Club, which was opened in the 1930s by tire tycoon

Harvey Firestone at Surfside on the northern end of Miami beach. The Four Seasons chain decided to bring the

iconic member’s club back to life after it shut its doors in 2013 by licensing the development of a new hotel

flanked by two elegant 12-storey private residences with 119 apartments. Current active listings of the residences

show a price range of between $3.9 million and $29.95 million.

This is likely to revive the chic Dolce Vita-style atmosphere of the Surf Club, which in its heyday has been a refuge

for many celebrities, including Frank Sinatra, Elizabeth Taylor, Dean Martin, Marlene Dietrich, Douglas Fairbanks

and Winston Churchill, as well as many other wealthy and famous guests, artists and Hollywood stars seeking a

short escape to socialise and reload.

“The new Surf Club is an extended embodiment of its original values at a greater scale,” said Nadim Ashi, the

founder of Miami-based real estate development firm Fort Partners, which today owns the Surf Club and is also

the developer of the residences, using the Four Seasons brand. “We have not created The Surf Club, but we have

a commitment to excellence and to ensure that what we are doing has integrity, culture and quality at its heart. It

needs to be alive and loved.”

The residences come fully furnished in a creamy French Riviera design style, floor-to-ceiling windows and terraces,

private elevator entrances and have easy access to the main hotel’s three pools and landscaped gardens, as well

as to a spa and two restaurants. Miami downtown is a 20-minute drive away, while the University of Miami and

the Florida International University can each be reached in 40 minutes by car, so prospective students can have

the lifestyle their lifetime.

Source: Gulf News

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INDIAN DEVELOPER LEARNS FROM DUBAI

ON PAYMENT SCHEMES Monday, November 27, 2017

Mumbai-based Omkar Realtors is opting for a 5 per cent down payment and the rest after handover for its Rs17

billion (Dh965.13 million) residential project in Mumbai.

“Post-handover payment schemes are relatively unheard of in India,” said Rahul Maroo, senior vice-president, “But

with the passage of India’s Rera [Real Estate Regulation Act], there’s far more confidence in what developers can

and cannot be doing.

“In one stroke, Rera has separated the men from the boys as far as development activity is concerned. Developers

with iffy track-records have been washed out of the market. We believe in the Rera era, branded developments

backed up by sufficient funds and capable of on-time delivery can offer post-handover payment schemes.”

Rera has put in place stiff penalties, including the threat of jail terms, for developers who play fast and loose with

investor funds. It has also set guidelines on how investor funds can be utilised through the lifetime of a project.

In Dubai, all through the last 18 months, developers had been competing in offering extra-generous payback

schemes, including periods of up to 10 years after handover. This was meant to offset the soft trading conditions

that existed in the local realty market between mid-2014 to mid-2016. And the move paid off for Dubai’s

developers with off-plan sales easily trumping ready property transactions through the last 12 months.

Interestingly, the Omkar project — located in the western suburb of Andheri — is one of the biggest residential

project launches in India in recent quarters. The property market is still coming to terms with demonetisation and

Rera. Domestic sales are yet to recover in full.

But Maroo has no such doubts over the new project. It has released Phase 1 featuring 1,200 apartment units. To

date, it had expressions of interest totalling 1,500. The launch prices and the design details are to be revealed

later this week. The project is located on the Western Express highway of Andheri-Jogeshwari east corridor.

Based on the interest generated, Omkar could be setting price levels of Rs8.7 million for a one-bed and Rs12

million for a two-bed. The units are between 355- to 710 square feet. The Andheri project will eventually cover 65

acres, all of which Omkar has acquired. It was previously the site of a slum, and Omkar has made a commitment

to rehouse the earlier inhabitants in a future phase, as per the laws. But that cluster will have “separate ingress

and egress points”, said Maroo.

“We are looking at four or five additional phases and to be built over years. The first phase covering 6 acres

should be ready by 2022 — we expect to generate Rs20 billion in sales from this one alone.”

On completion, it is in line to be the “largest boutique residential gated community in Mumbai”. Omkar’s

development focus is stuck on Mumbai. Omkar has delivered 15 projects in Mumbai and developing another six.

The plan is to complete development of 20 million square feet by 2018 and with an additional pipeline of 40

million square feet. Its flagship project remains the super-premium three-tower ‘Omkar 1973’ project in Worli,

Two of the towers are of 81 storeys and third at 76.

Source: Gulf News

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TURKEY, EGYPT PROPERTY BENEFIT FROM

SHIFTING GEOPOLITICAL SANDS Tuesday, November 28, 2017

The shift towards Turkey and Egypt is no coincidence. Historically, Lebanon was the preferred regional destination

for many UAE vacationers, developers and investors. But things have changed.

We (the Propertyfinder Group) operate large real estate portals in seven regional markets, including Egypt and

Lebanon. And earlier this year, we secured a large stake in Zingat.com, the fastest growing property website in

Turkey with over 8,000 paying clients.

Our international expansion strategy has considered the local conditions on the ground of each individual country

but also the synergies between the markets. Egypt was part of our initial international expansion, quickly followed

by an acquisition of realestate.com.lb in Lebanon. Later, we added Bahrain, Morocco and then acquired

eSimsar.com in Saudi Arabia. We've seen first-hand the effects of shifting geopolitics on individual real estate

markets within the region. And the timing of the investment in Turkey was no accident.

UAE-based investors were once the most active foreign buyers in Lebanon. In 2009, UAE investment in Lebanon

exceeded $1 billion (Dh3.67 billion), according to an Inter-Arab Investment Guarantee Corporation report. Dubai's

Al Habtoor Group, Damac Properties and Planet Group, among others, launched various big-ticket projects in

Lebanon, such as five-star hotels, high-rise apartments and malls in the early 2000s.

But five years ago, as the war in Syria ramped up, the UAE and its Gulf allies asked their citizens to avoid Lebanon

due to escalating security concerns. This had an immediate effect on foreign investment in the country. In

February 2016, the UAE's Ministry of Foreign Affairs upgraded the travel warning to Lebanon to a complete ban.

UAE vacationers and investors starting looking elsewhere. Egypt and Turkey have been the main beneficiaries. Big

drops in the local currencies against the dollar have made the case even more compelling.

According to estimates by Agaoglu, the largest developer in Turkey, about 60 per cent of foreign investors who

purchased property in Turkey came from the Middle East last year, and analysts project a continued upturn in

investor appetite.

Emaar, for example, is looking to make a Little Dubai in the downtown area of Istanbul. In 2012, it began

developing Emaar Square, similar to what Emaar delivered with The Dubai Mall. The project plans include building

Turkey's largest shopping mall and five-star hotels. In 2013, Emaar Turkey, the wholly owned subsidiary of Emaar

Properties, launched The Address Residences Emaar Square in Istanbul. A proven formula, and Emaar's

international expansion is growing. Revenue from its international development segments recorded 64 per cent

year-on-year growth in H1 2017. Emaar's international development now contributes 22 per cent to its total group

revenue.

The Turkish government has been proactive. In a bid to secure more foreign investors in 2013, Turkey passed

legislation granting citizenship rights to those investing $1 million-plus into Turkish real estate, and opened up

unconditional purchasing power to 129 nationalities. There has been talk in the local media there that this

threshold may be lowered further.

Strategically located between Asia and Europe, offering a temperate climate with four genuine seasons, modern

infrastructure, a rich culture and a liberal outlook, Turkey has become one of the more high profile and

interesting options in the burgeoning economic citizenship sector.

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Meanwhile, in Egypt, the devaluation of the Egyptian pound against the USD (by over two-thirds in the past five

years with 50 per cent in the last alone), has enticed holders of USD-backed currencies. The crystal blue shoreline

of the North Coast is on top of the list for expats and locals alike. Prominently located on the Mediterranean Sea,

214 kilometres north from Cairo, it's proven to be a viable alternative to summer in Beirut. The transformation of

its capital thanks to a new $45 billion investment is also part of a UAE-Egypt government partnership, and being

managed by Dubai-based Capital Group Properties. The project, which is being built in phases over 10 years,

includes 10,000 kilometres of streets and tens of thousands of residential units. A growing list of UAE-based firms,

including KBBO, Dana Gas and Majid Al Futtaim, are investing millions in Egypt's development.

While no one can be 100 per cent certain of what the future holds, synergies between the UAE and these two

regional markets right now are very strong and growing.

Source: Khaleej Times

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FIVE REASONS WHY THE WORLD'S PRICIEST

PROPERTY MARKET KEEPS ON SOARING Wednesday, November 29, 2017

Hong Kong’s red-hot housing market shows no signs of cooling anytime soon.

Prices in the city have climbed 11 per cent this year, defying skeptics waiting for the bubble to burst and

government attempts to rein in the world’s most expensive housing market through a raft of taxes and mortgage

curbs.

If anything, the frenzy has intensified in recent months as investors have poured money into property. Buyers

have set new records for everything from luxury homes in the exclusive Peak neighborhood to undeveloped

residential land. There have also been blockbuster deals for commercial property in the heart of Hong Kong’s

central district.

“Now it is very hot, because of the hot money rushing in,” says Raymond Ho, deputy senior director of residential

development and investment at Savills. “There is more record-breaking coming.”

Runaway growth has put the city in bubble risk territory, according to the UBS Global Real Estate Bubble Index.

Even so, mass-market home prices will rise 8 per cent to 10 per cent next year, according to property consultancy

Colliers International Group. Real estate consultant Knight Frank expects prices of such homes to climb 5 per cent

next year, while luxury housing advances 8 per cent.

Here are five reasons why property bulls say the city’s housing market will continue to defy expectations of a

slowdown:

1. Demand outstrips supply

An average 20,000 new private residential units come to market each year, barely enough to cover the 20,000

mainland Chinese who become permanent residents each year - allowing them to avoid the punitive stamp duties

slapped on foreign buyers - let alone anyone else. The number of unsold apartments in the third quarter fell to

the lowest levels since 2015, according to Bloomberg Intelligence.

2. Money is easy

Cash-rich developers are pulling out all stops to entice buyers. At its Cullinan West project, Sun Hung Kai

Properties is offering buyers finance of as much as 120 per cent of the purchase price: 90 per cent toward buying

the new property, and 30 per cent to pay down their existing mortgage. More than 95 per cent of the 321 units

offered over the weekend sold, Sun Hung Kai revealed. They were priced about 11 per cent higher than a March

sale at the same development, according to BOCOM International Holdings. Other developers offer rebates to

buy furniture or interest-only loans for the first three years.

3. Mortgages are cheap

In a sign that mortgage wars between banks are raging even amid the prospect of rising interest rates, HSBC

Holdings is offering to match low rates from rival lenders. Hong Kong’s largest mortgage lender is offering some

clients a rate of Hibor plus 1.28 per cent if they get similar terms from other banks. That works out to less than 2

per cent. “These rates are highly affordable and will continue to be, even if the US pushes up rates 25 or 50 basis

points,” says Marcos Chan, senior director of research for Hong Kong, Southern China and Taiwan at CBRE.

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4. Bank of Mum and Dad chips in

The biggest obstacle for new home buyers is coming up with the minimum 40 per cent down-payment required

by Hong Kong Monetary Authority loan-to-value ratios. Step in the Bank of Mum and Dad. Hong Kong’s de-facto

central bank has warned young buyers are increasingly turning to their parents, with home purchases being

financed partially by proceeds from refinancing mortgages. That also makes it harder for others whose families

aren’t asset-rich to get on the property ladder.

The average number of monthly refinancings rose to 3,100 in the first three quarters of this year from 2,200 in

2016, according to HKMA data.

Through August, the value of refinancing was equal to almost 50 per cent of primary sales, according to Cusson

Leung, head of research for Hong Kong property and conglomerates at JPMorgan Chase & Co. “We have the sense

that most of the financing is going into buying property.”

5. Soaring land prices

Aggressive bids by mainland developers keen to build up land banks have pushed Hong Kong prices to records.

Non-local developers account for 68 per cent of all government land purchases this year, according to Colliers.

In February, two mainland companies paid a record HK$22,118 (US$2,834) per square foot for a waterfront site.

Those costs will ultimately result in higher apartment prices once developments are completed, causing

neighbouring property owners to raise their own expectations.

“People translate a land sale into the final built price, and when it is way above the market everyone will raise

their own prices,” says Denis Ma, head of Hong Kong research at consultancy Jones Lang LaSalle.

Source: The National

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BIG SHIFTS COMING TO THE U.S. HOUSING

MARKET IN 2018 Wednesday, November 29, 2017

According to Realtor.com's 2018 National Housing Forecast, U.S. housing inventory constraints have fueled a

sharp rise in prices and made it difficult for buyers to gain a foothold in the market. But that is expected to

change next year as part of broader and continued housing market improvements.

The easing of the inventory shortage, which is expected to result in more manageable increases in home prices

and a modest acceleration of home sales, is based on an inventory growth trend that began in August 2017,

according to Realtor.com. The annual forecast, which is among the industry's bellwethers in tracking and

analyzing major trends in the housing market, also expects an increase in millennial mortgage share and strong

sales growth in Southern markets. The wildcard in 2018 will be the impact of the tax reform legislation currently

being debated in Congress.

"We are forecasting next year to set the stage for a significant inflection point in the housing shortage," said Javier

Vivas, director of economic research for Realtor.com. "Inventory increases will be felt in higher priced segments

after home buying season, which limits their impact on total sales for the year. As we head into 2019 and beyond,

we expect to see these inventory increases take hold and provide relief for first-time home buyers and drive sales

growth."

Top Five U.S. Housing Trends for 2018 Include:

1. Inventory begins to increase - Beginning in August 2017, the U.S. housing market started to see a higher than

normal month-over-month increase in the number of homes on the market. Based on this trend, realtor.com

projects U.S. year-over-year inventory growth to tick up into positive territory by fall 2018, for the first time since

2015. Inventory declines are expected to decelerate slowly throughout the year, reaching a 4 percent year-over-

year decline in March before increasing in the early fall, after the peak home-buying months. Boston, Detroit,

Kansas City, Nashville and Philadelphia are predicted to see inventory recover first. The majority of this growth is

expected in the mid-to-upper tier price points, which includes U.S. homes priced above $350,000. Starter homes

are expected to take longer to recover because their levels have become so depleted by first time buyers.

2. Slowing price appreciation - Home prices are forecasted to slow to 3.2 percent growth year-over-year

nationally, from an estimated increase of 5.5 percent in 2017. Most of the slowing will be felt in the higher-priced

segment as more available inventory in this price range and a smaller pool of buyers forces sellers to price

competitively. Entry-level homes will continue to see price gains due to the larger number of buyers that can

afford them and more limited homes available for sale in this price range.

3. Millennials gain market share in all home price segments - Although millennials will continue to face challenges

next year with rising interest rates and home prices, they are on track to gain mortgage market share in all price

points, due to the sheer size of the generation. Millennials could reach 43 percent of home buyers taking out a

mortgage by the end of 2018, up from an estimated 40 percent in 2017. With the largest cohort of millennial

expected to turn 30 in 2020, their homeownership market share is only expected to increase.

4. Southern markets will lead in sales growth - Southern cities are anticipated to beat the national average in

home sales growth in 2018 with Tulsa, Okla.; Little Rock, Ark.; Dallas; and Charlotte, N.C.; leading the pack. Sales

are expected to grow by 6 percent or more in these markets, compared with 2.5 percent nationally. The majority

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of this growth can be attributed to healthy building levels combating the housing shortage. With inventory growth

just around the corner, these areas are primed for sales gains in years to come.

5. Tax reform is a major wildcard - At the time of this forecast, both the House and Senate had bills up for

consideration, because neither had passed at the time they were not included in the forecast. Both proposed tax

changes had provisions that are likely to decrease incentives for mobility and reduce ownership tax benefits. On

the flip side, some taxpayers, including renters, are likely to see a tax cut. While more disposable income for

buyers is positive for housing, the loss of tax benefits for ownership could lead to fewer sales and lower prices

with the largest impact on markets with higher prices and incomes.

Next year, home prices are anticipated to increase 3.2 percent year-over-year after finishing 2017 up 5.5 percent

year-over-year. Existing home sales are forecast to increase 2.5 percent to 5.60 million homes due in-part to

inventory increases, compared to 2017's 0.4 percent increase or 5.47 million homes. Mortgage rates are expected

to reach 5.0 percent by the end of 2018 due to stronger economic growth, inflationary pressure, and monetary

policy normalization in the year ahead.

Source: World Property Journal

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With over 30 years of Middle East experience,

Asteco’s Valuation & Advisory Services

Team brings together a group of the Gulf’s

leading real estate experts.

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

Northern Emirates, Qatar, and the Kingdom of Saudi

Arabia not only provides a deep understanding of the local

markets but also enables us to undertake large

instructions where we can quickly apply resources to meet

clients requirements.

Our breadth of experience across all the main property

sectors is underpinned by our sales, leasing and

investment teams transacting in the market and a wealth

of research that supports our decision-making.

John Allen BSc MRICS

Director, Valuation & Advisory

+971 4 403 7777

[email protected]

Jenny Weidling BA (Hons)

Manager – Research and Advisory

+971 4 403 7789

[email protected]

VALUATION & ADVISORY

Our professional advisory services are conducted by

suitably qualified personnel all of whom have had

extensive real estate experience within the Middle

East and internationally.

Our valuations are carried out in accordance with the

Royal Institution of Chartered Surveyors (RICS) and

International Valuation Standards (IVS) and are

undertaken by appropriately qualified valuers with

extensive local experience.

The Professional Services Asteco conducts throughout

the region include:

• Consultancy and Advisory Services

• Market Research

• Valuation Services

SALES

Asteco has established a large regional property sales

division with representatives based in UAE, Saudi

Arabia, Qatar and Jordan.

Our sales teams have extensive experience in the

negotiation and sale of a variety of assets.

LEASING

Asteco has been instrumental in the leasing of many

high-profile developments across the GCC.

ASSET MANAGEMENT

Asteco provides comprehensive asset management

services to all property owners, whether a single unit

(IPM) or a regional mixed use portfolio. Our focus is

on maximising value for our Clients.

OWNER ASSOCIATION

Asteco has the experience, systems, procedures and

manuals in place to provide streamlined

comprehensive Association Management and

Consultancy Services to residential, commercial and

mixed use communities throughout the GCC Region.

SALES MANAGEMENT

Our Sales Management services are comprehensive

and encompass everything required for the successful

completion and handover of units to individual unit

owners.