NEWS BRIEF 10 - Asteco Property Management · arabtec unit wins dh424m contract for damac's akoya...

DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN | KSA © Asteco Property Management, 2018 asteco.com

IN THE MIDDLE EAST FOR OVER 30 YEARS

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

NEWS BRIEF 10 SUNDAY, 11 MARCH 2018

DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN | KSA © Asteco Property Management | 2018 | asteco.com

IN THE MIDDLE EAST FOR OVER 30 YEARS



REAL ESTATE NEWS

UAE / GCC

RESIDENTIAL COMMUNITIES REQUIRE MORE THAN A FEW GREEN AREAS

WHEN HOMEOWNERS REFUSE TO PAY SERVICE CHARGES

PROTECT RIGHT TO PROPERTY OF ALL PEOPLE — ARAB LAND CONFERENCE DELEGATES

THE OFF-PLAN EVOLUTION: WHAT’S IN IT FOR YOU?

EGYPT COMMITS 1,000 SQ KM IN SOUTH SINAI TO SAUDI MEGA-CITY

CAN A DEVELOPER FINE ME FOR LATE PAYMENT A YEAR AFTER HANDOVER?

EGYPTIAN BILLIONAIRE SAWIRIS TO BUILD $2BN PAKISTAN DEVELOPMENT

WHY FEMALE REAL ESTATE ENTREPRENEURS THRIVE IN THE UAE

PACE OF OFF-PLAN PROPERTY LAUNCHES WILL CONTINUE TO TAPER IN UAE

UAE REAL ESTATE MUST ADAPT TO REMAIN RELEVANT

DUBAI

DAMAC AWARDS A SECOND MAJOR CONTRACT TO ARABTEC

OFFICES IN DEIRA AND GARHOUD FEEL RENTAL PRESSURES

LOWER LAND PRICES HELP DEVELOPER’S CAUSE IN DUBAI

DUBAI’S LUXURY PROPERTIES WIN BACK GLOBAL INVESTORS

INVESTORS BACK TO BUYING LUXURY HOMES IN DUBAI

DUBAI’S MOST SOUGHT AFTER DISTRICTS

DUBAI’S SUSTAINABILITY PLAN

NEW, DH1.2B MALL RISING IN DUBAI

EMAAR LAUNCHES LUXURY HOME PROJECT ON DUBAI CREEK ISLAND

DH8-BILLION BLUEWATERS ISLAND OFF DUBAI TAKES SHAPE

ARABTEC UNIT WINS DH424M CONTRACT FOR DAMAC'S AKOYA PROJECT

DEVELOPER WOOS BUYERS WITH MONTHLY PAYMENT, RENT GUARANTEE

DUBAI DEVELOPERS REACH OUT TO CRYPTOCURRENCY INVESTORS

OMNIYAT'S NEW LUXURY DUBAI CANAL PROJECT

DUBAI PROPERTY PORTAL EXPANDS OPS TO END USERS, MORTGAGED BUYERS

VAT LAUNCH HAS 'NO IMPACT' ON DUBAI OFFICE MARKET SO FAR


DEFINING LANDSCAPES SINCE 1985



REAL ESTATE NEWS

DUBAI'S DANUBE LAUNCHES NEW $81M JEWELZ PROJECT

UAE BANK DONATES $136K TO HELP RESOLVE DUBAI RENTAL DISPUTES

BINGHATTI DEVELOPERS SELLS 60% OF MILLENNIUM BINGHATTI RESIDENCES

ABU DHABI

NEW AREAS GET POPULAR AMONG ABU DHABI RESIDENTS

NORTHERN EMIRATES

SHARJAH DEVELOPER AWARDS CONTRACT TO LATE ZAHA HADID’S FIRM

SHARJAH’S WATERFRONT MARVEL

REVITALISING SHARJAH’S REAL ESTATE MARKET IS A MATTER OF CULTURAL PRESERVATION

SHARJAH’S BIG SPLASH

SHARJAH PLUGS THE GAPS IN REAL ESTATE

OVER 468,000 EUROPEANS VISIT SHARJAH IN 2017

REVEALED: THE WINNING DESIGN FOR SHARJAH'S $6.8BN MEGA PROJECT

INTERNATIONAL

PAKISTAN-UAE PROPERTY EVENT TO OPEN IN ISLAMABAD

SOUTH AFRICA BRACES FOR ECONOMIC FALLOUT OF LAND NATIONALISATION MOVE

GETTING BULLISH ON SINGAPORE REALTY

PAKISTAN CHASES MORE UAE REAL ESTATE INVESTORS

HOME FLIPPING IN U.S. HITS 11-YEAR HIGH IN 2017





RESIDENTIAL COMMUNITIES REQUIRE MORE

THAN A FEW GREEN AREAS Wednesday, March 07, 2017

As we witness rapid urbanisation and demographic change in the region, it becomes more challenging to create places

that establish a sense of belonging and human attachment to communities. When it comes to the UAE, the country has always been blessed with a rich cultural heritage and has great potential to nurture creativity and innovation.

To unlock these potentials, the Dubai Government is placing significant emphasis on the transformative concepts for the real estate sector in partnership with the private sector with a vision to make the emirate one of the most sought-

after cities in the world to live, work and play. How can we as real estate developers capitalise on a local community’s

assets, inspiration, and potential, to create public spaces that promote people’s health, happiness, and well-being?

We believe that “place-making” is a catalyst for revitalising community development in the UAE. We also do believe that

the UAE’s real estate sector is primed for disruption by place-making, simply because the UAE has matured into a regional leader of transformation and growth.

Today, whether people are buying property, living here or visiting, they seek places with heart and soul, a true sense of

belonging and everlasting attachment. Place-making addresses these needs as it is built on the premise that the most desirable communities carry emotional as well as functional values.

This is not a new phenomenon. There are several examples of metropolises that have evolved through economic growth and lifestyle changes. Over the years, cities such as London, New York and Sydney have absorbed culture,

trends and people’s needs to develop, so that key areas, once unattractive, are now highly sought-after places with

unique character.

Place-making distinguishes developments in numerous ways. At the core, it builds on the aspects of development that

deliver functional value, including quality and location, by embedding qualities that generate emotional value, such as authenticity, variety and social interaction.

Established in the 19th century, the Bastakiya quarter stands out to this day as the oldest residential area in Dubai with its authentic buildings, wind towers, cafes and galleries. Alserkal Avenue has also quickly become one of the most

popular modern urban spaces in the UAE, well-known for supporting creativity and cultural exchange.

The space features simple, yet unique, concepts that combine contemporary lifestyle with the region’s heritage, creating a human friendly neighbourhood that encourages people to meet, talk and interact with their surroundings.

Our own research into the drivers behind emotional attachment to urban developments and communities, reaffirms the impact of place-making. Using neuroscience technology, we measured how people in the UAE subconsciously and

consciously responded to various images of urban developments and landscapes from around the world.

The findings tell us that human activity, greenery, artistic features and bright colours are the most powerful drivers of emotional engagement with destinations and environments.

Al Mouj Muscat, our waterfront development in Oman, was developed with these principles in mind to create unique destinations. The Beach Park, for instance, was carefully planned and designed to allow human interaction with its

facilities, echoing the Omani maritime culture. Everyday simple human activity within the community, whether it is a Saturday open market or a movie night in the park, helps establish social cohesion in the neighbourhood.

The international property market is abundant with examples of how place-making can transform and enhance

communities by exceeding the traditional facilities such as playgrounds and parks. They invest in cultural pursuits and ensure a mixture of services and uses are available.

These developments also focus on diversity of movement, by working with governments to offer alternative transit options, placing pedestrian mobility over every other mode of transport to deliver a real sense of place and community.





However, communities aren’t simply built using brick and mortar. A diverse network of people and their cultures help to

foster the uniqueness that today’s savvy buyers are craving. This aspect of placemaking can be the most critical and hardest to achieve.

Place-making requires putting people first, valuing public spaces and providing opportunities to enjoy life; creating great moments for everyone, every day. That is why, we believe that place-making is a fundamental driver in the long-

term sustainability of community development, domestically and regionally. Enhancing well-being is a core pillar of a

cohesive, happy community.

Source: Gulf News

Back to Index





WHEN HOMEOWNERS REFUSE TO PAY

SERVICE CHARGES Wednesday, March 07, 2017

Unit owners in a one-year-old building have been wrangling over maintenance and service fee issues with the

developer. The owners complain that the owners’ association (OA) is not prompt in resolving the day-to-day concerns and never responds to queries. The owners said they have not been furnished the audit report for the maintenance

charges for the period 2016-17, while there is a steep increase in maintenance charges for 2017-18.

There has also been constant leakage in the building and the owners have questioned the developers on the quality of

the materials used. There was no concrete answer from the developer, and they also did not fix these issues. While

there is an OA, the elected board members have very limited influence over these things.

House leak

While the homeowners' complaint of constant leakage is valid, that does not exempt them from paying the service fees

All owners have therefore refused to pay the maintenance charges for 2016-17 until their complaints are addressed

with clear deadlines. Meanwhile, the OA said the owners could be in breach of article 22 and 25 of the property law in

Dubai.

Are there any legal avenues for the owners to pursue their complaints? Do they need to approach the Real Estate

Regulatory Agency (Rera) or the authorities in the free zone where the property is situated?

In many disputes between homeowners and developers, the applicable law in Dubai is Law 27 of 2007 concerning

ownership of jointly owned real property, along with the regulations and circulars issued by Rera. There are a number

of different parties involved in the development, handover and management of a jointly owned property, each with certain rights and responsibilities in the process.

Owners’ association

The OA represents all the owners. Therefore, the owners must work through the OA when dealing with the developer.

The board of the OA is registered with Rera and is obliged to comply with the code of conduct. The OA is represented by the association manager.

Owners

In terms of article 22, there is a clear obligation for each owner to pay the annual charges to the OA to cover the management and maintenance costs of the common areas. Article 25 gives the OA a lien over a unit for as long as the

unit’s owner is in arrears with the payment of the service charges. If the owner does not pay the service charges and ignores three warning notices, the OA will notify Rera and the owner can be declared and registered as a defaulting

owner.

Non-payment of the annual charges is illegal and should not be used as a weapon against the OA. The OA is required to make payments for the proper management of the building and that obligation should not be hindered by the

owners. The annual charges are approved by Rera after the audited previous financial statements are completed and filed. If this has not been done, it is possible to file a complaint with Rera with the aim of inquiring why this has not

been done and putting pressure on the OA to comply. Non-payment of the annual charges is illegal and should not be used as a weapon against the OA. The OA is required to make payments for the proper management of the building

and that obligation should not be hindered by the owners.

Developer

Article 26 sets out the developer’s liability for structural defects for 10 years from the date of the completion of the

building as reflected on the completion certificate. For the installations within the building, i.e. the mechanical, electrical and water installations, the period of liability is one year.





Remedies

The owners cannot be working at odds with the OA and a unified effort must be developed. If the board is not performing satisfactorily, then consideration should be given to having them replaced through the appropriate process.

However, it is unlikely to be the solution.

Enforcement measures by the OA are hindered by the fact that its separate legal status is not recognised and,

therefore, despite the wording of article 18 (1) of the law, it is not able to bring any enforcement proceedings in its

own name as a separate entity.

The most effective measure for an owner or group of owners would be to file a case through the courts against the

developer in respect of the damage suffered by the owner or owners. This may not sound appealing due the time and costs involved, however, the alternative is inaction and frustration, which is presently being endured.

Apart from these general considerations, any owner or OA can seek advise from a lawyer to address the disputes in the most appropriate and effective legal manner.

Source: Gulf News

Back to Index





PROTECT RIGHT TO PROPERTY OF ALL

PEOPLE — ARAB LAND CONFERENCE

DELEGATES Wednesday, March 07, 2017

The participants of the First Arab Land Conference, representing governments, the private sector, civil society, academic professionals, international and regional organisations, and other relevant stakeholders, have called on Arab

states to ensure the full protection of property rights for all segments of the population in the region.

This was among the recommendations made by the delegates at the conclusion of the conference last week in Dubai concerning the most pressing land-related challenges currently facing the Arab region. Other issues that need urgent

attention according to the delegates include conflict over land use and land-related resources from different social and economic groups; lack of affordable access to land for women, youth and marginalised communities; weak land tenure

security for vulnerable urban and rural populations; insufficient and ineffective land administration processes and

practices; and the need for improved capacities of regional and local institutions to deal with land governance challenges.

The delegates also recommended the exchange of knowledge, regional cooperation and the development of capacities and innovation in land governance and real estate reform.

“Everyone participated enthusiastically in order to find successful solutions to the various challenges facing the land

sector in the Arab world,” said Sultan Butti Bin Mejren, director general of the DLD. “This is clearly demonstrated by the list of recommendations generated by the conference, which will benefit various economic events and activities, as well

as all segments of society.”

Other main recommendations include the acknowledgement of the importance of land within the global agenda,

facilitating improved service delivery and ensuring the sustainable use of land resources for current and future generations.

Source: Gulf News

Back to Index





THE OFF-PLAN EVOLUTION: WHAT’S IN IT

FOR YOU? Monday, March 05, 2017

Opportunities for Dubai’s real estate buyers have never been so wide after several years of significant off-plan

launches, combined with softening prices of ready developments across all areas of the emirate. This scenario peaked last year, with over 40,000 units from new off-plan projects being launched. The majority of those homes were

positioned in the mid-market segment, reflecting a shift in the market’s focus over the last five years.

The changing characteristics of the local market has created growing opportunities for first-time buyers to purchase a

starter home, with developers aiming to appeal to long-term residents who have traditionally rented their homes. There

are also more options for first-time investors, with flexible back-weighted payment plans, making it easier for potential purchasers to start their real estate portfolios. Similarly, for the more seasoned investors, access to payment plans has

facilitated a market for calculated investing, with comparatively cheap finance and options to extend payments years after actual completion of units. This has been incredibly appealing for investors with a long-term vision and are willing

and capable of a long holding period of their real estate assets, thus benefiting from rental income before full payments

are made.

Developers are very aware that investors are maturing along with the market, and they are now selling to a more

knowledgeable market with greater transparency. At the same time, there is also far higher competition and, therefore, they are having to incentivise sale. These incentives predominately include flexible payment plans, sharing of the 4 per

cent Dubai Land Department registration fee and in some cases even guaranteed returns.

The diversity of the buyer pool has also driven developers to become more creative in their design, sales and marketing strategies, and their overall vision for their developments, keeping in mind the end user’s experience, whether that is

the owner-occupier or renter. While investors will focus on the price per square foot, owner-occupiers are more sensitive to the unit price, and what value is attached to that price.

Developers are maintaining the positioning and quality of the development via more efficient design of buildings, as well as the individual units, innovative building and fit-out materials, as well as adding value through amenities,

facilities and enhancing the living experience within the development and master plan.

Although buying an off-plan property comes with potential risks, including completion and handover delays, the volume of sales for these assets far exceeds that of completed properties. This reflects the market’s appeal to speculative

investors, and the more constrained input of end users. International buyers in particular are being enticed by the availability of incentives, mainly those which ease the financial burden on the buyer. The inclination towards off-plan

property was highly evident last year, when the market recorded a huge 60 per cent increase in sales, with much of the

growth occurring in the number of villa transactions.

There has also been a slight move towards more market-driven unit typologies and developments, as developers

expand their buyer profile pool by targeting new international markets. With increased competition, developers are looking towards global practices to increase their sales and interaction with buyers in the local markets. They are

continuously exploring ways to facilitate the buying process, with some developers already introducing online reservation and booking payment for a property. With Dubai’s vision to always be ahead of the curve in terms of

technology, we could expect developers to have the full buying process online and even the use crypto currencies in

the future.

Source: Gulf News

Back to Index





EGYPT COMMITS 1,000 SQ KM IN SOUTH

SINAI TO SAUDI MEGA-CITY Monday, March 05, 2017

Egypt has committed more than 1,000 square kilometres of land in the southern Sinai Peninsula to a planned mega-city

and business zone unveiled by Saudi Arabia last October, a Saudi official told Reuters on Monday.

The territory along the Red Sea is part of a joint fund worth more than $10 billion and announced by the two countries

late on Sunday during a visit to Cairo by Saudi Crown Prince Mohammad Bin Salman.

Prince Mohammad previously announced plans for the 26,500 square km zone, known as NEOM, at an international

investment conference in Riyadh. Officials said public and private investment in the area was eventually expected to

total $500 billion.

The mega-city, with its own judicial system and legislation designed to attract international investors, is to focus on

industries such as energy and water, biotechnology, food, advanced manufacturing and tourism, according to officials.

It is part of bold moves by the 32-year-old heir apparent to wean the world’s top crude exporter off oil revenues that

include plans to float a portion of state oil giant Saudi Aramco.

Riyadh’s part of the new joint investment fund will be cash to help develop the Egyptian side of NEOM, which was conceived as spanning across Saudi Arabia, Egypt and Jordan.

Saudi Arabia plans to build seven cities and tourism projects, while Egypt will focus on developing the existing resort cities of Sharm Al Shaikh and Hurghada, the Saudi official said.

The kingdom will also work with Egypt and Jordan to attract European cruise companies to operate in the Red Sea

during the winter season. Riyadh is negotiating with seven cruise companies and aims to build yacht marinas.

It will also set up 50 resorts and four small cities as part of a separate tourism initiative announced last August and

backed by the country’s Public Investment Fund (PIF).

The Red Sea Project, made up of some 50 islands, will offer a nature reserve, diving on coral reefs and heritage sites.

Authorities have said it would break ground in 2019 and complete its first phase by late 2022.

Riyadh and Cairo also signed an environmental protocol on Sunday aimed at preserving the Red Sea’s coral reefs and

preventing “visual pollution”, the official said without providing details.

The Saudi government has already asked local construction companies to build five palaces in NEOM, Reuters reported last month. Some companies, including Japan’s Softbank, have said they are prepared to invest there, but major,

concrete business investments have not yet been announced.

Source: Gulf News

Back to Index





CAN A DEVELOPER FINE ME FOR LATE

PAYMENT A YEAR AFTER HANDOVER? Wednesday, March 07, 2017

I have recently received a fine for late payment for the handover of a property. We have already paid the full amount and the deeds have been issued but over a year later I have received a huge fine - is this legal? I’ve spoken to many people and everyone says the developer is just trying it on, but it’s still worrying that this is even possible. Why not charge this fee on handover? DS, Dubai

The main question here, which may determine the legitimacy of the developer’s claim, is did the developer provide you

with a no objection certificate prior to obtaining the title deed? If yes then the developer would not be able to claim any

penalty whatsoever. Having said this, even if no NOC was given, it would be difficult for a developer to substantiate the claim.

My advice would be to initially double check this with a lawyer because each case is taken by its own context and merits. My take on it is that the developer is trying it on. Given the current economic climate, this is becoming a

common trend by companies, they send out these claims in the hope that they might get something back in return.

I did not want to renew my tenancy contract and provided one month's notice of my intention to the landlord. The contract has a “not-to-renew” clause requiring 90 days' notice to the landlord, otherwise there is an automatic renewal.

So basically, I’m giving less notice than required by the contract. The landlord insists that I have to renew for another 12 months at the existing contract price, and there are no other options on this. However, the contract does not have

any clause that deals with providing late notice. There is a clause that states “in the event of the contract being broken,

the tenant will have to pay the rent until a new tenant is found". RS, Dubai

The terms of any contract have to be adhered to by the parties that agreed to it by signing the contract in the first

instance. The problem I see is that when these terms/clauses go against what is mentioned in the law, then your only other route would be to challenge the contract/landlord by filing a case at the Rental Dispute Settlement Centre. Only a

judge can decide the outcome because clearly you and your landlord are looking at this issue from polar opposites.

Law 33 of 2008 amended Law 26 of 2007 and did away with the necessity for tenants to give 90 days’ notice for reason

of non-renewal. Please note that there is a fee of 3.5 per cent of the rental amount to open the case.

My advice would be to initially continue with the dialogue between you and your landlord to see if you can come to some form of agreement. Explain to him that the law does not recognise the 90-day rule any more (for non-renewal).

Clearly if you get nowhere, at least you have the option to file the case and let the judge decide.

Source: The National

Back to Index





EGYPTIAN BILLIONAIRE SAWIRIS TO BUILD

$2BN PAKISTAN DEVELOPMENT Wednesday, March 07, 2017

Egyptian billionaire Naguib Sawiris’s Ora Developers will next month start building a luxurious $2 billion housing estate

on the outskirts of Islamabad and is eyeing further projects as it taps demand from overseas Pakistanis.

The "Eighteen Islamabad" development will feature more than 1,000 homes, a golf course and a mall on 2.25 million

square metres of land. It will take six years to complete, said Tarek Hamdy, chief executive of the development. Mr Sawiris holds 60 per cent in a joint venture with local firms Kohistan Builders and Developers and Saif Group, owned by

Pakistan’s prominent Saifullah family.

Pakistan’s real estate sector has seen a boom in recent years as militant violence has receded. Economic growth in the nation of more than 200 million people has risen to around 5 per cent as China finances more than $50bn on

infrastructure projects across the country. House prices have more than doubled since 2011, according to property website Zameen, and housing projects are mushrooming in cities such as Karachi, Lahore, Islamabad and Peshawar,

“The market isn’t saturated,” Mr Hamdy said at his office next to Islamabad’s Margalla hills, adding that Mr Sawiris’ firm

is eyeing potential other projects that may be announced by the end of this year.

Prices for a three bedroom home on the estate start at $275,395 and about $400 million will be invested in the

development in the first two years, Mr Hamdy said.

“You can develop a project at very reasonable margins” between 10 to 40 per cent, he said. “The highest quality still

makes money.”

Mr Sawiris is not new to Pakistan. He previously set up one of Pakistan’s first mobile phone companies, Mobilink, now the nation’s largest cellular firm by subscriber numbers.

Apart from private businessmen such as Malik Hussain who is building Pakistan’s largest development outside Karachi, the military’s housing business has sped up efforts to grab market share. Mr Hamdy sees overseas Pakistanis

particularly in the United States, United Kingdom and Middle East as major buyers and is considering launching another housing project by the end of 2018.

A shortage of housing units will boost construction activity in Pakistan as the urban population grows by nearly 30

million by 2027, BMI Research said in a December report. Construction has been one of the largest recipients of foreign direct investment and in the first seven months of this fiscal year $380m was invested in the sector, according to

central bank data.

“Here you have so much to offer,” said Mr Hamdy.


Back to Index





WHY FEMALE REAL ESTATE

ENTREPRENEURS THRIVE IN THE UAE Tuesday, March 06, 2017

Aside from the sunshine, the reason most of us live in the UAE is because there are few better places in the world to do

business. The UAE's pro-business, pro-entrepreneur policies level the playing field.

We recently gathered 7 women at the top of their game and in leadership roles at some of Dubai's best real estate

firms and property management companies. They were brought together to speak about how they got to the UAE, their breaks from the ranks to strike out on their own as entrepreneurs, and what it takes to succeed in a country where

women not only drive, they are at the wheel in more ways than one.

These women have much in common: after living in Dubai, they all realised it would not only be possible but profitable to run their own company; each one weathered the 2008 slowdown and say they are stronger for it; and they all

attribute much of their success to the UAE business environment.

But from there, their paths diverge, because there is no one single story about how women find success in a male-

dominated world.

Worth noting is the disparate number of men in Dubai. As of late 2016, 70 per cent of foreign workers in the emirate were male, according to the Dubai Statistics Centre. However, efforts by the government and the leadership of women

in the private sector are creating a new face of female in the Middle East. As of November last year, 9 of 29 UAE government ministers were women, and Shamma bint Suhail Faris Al Mazrui, at 23, is the youngest government

minister in the world.

At the same time, the UAE is just shy of breaking into the Top 20 countries when it comes to ease of doing business, according to the latest ranking by Knight Frank. It jumped 5 spots to 21st this year.

Louise Heatley, managing director of Exclusive Links Real Estate, arrived in the UAE in 1996 as cabin crew for Emirates. Within 4 years, she had reached the top rank of purser and was unsure what to do next. Real estate proved to be her

opportunity and she went into business with a local Emirati woman who sponsored her fledgling property management company in 2005. She now oversees 40 staff. According to her, the UAE is on a steep learning curve at all times, but

rolls with changes and learns from mistakes.

Hind Jouini, the managing director of Real Choice Real Estate, sees firsthand the regulatory wheels turning in the right direction. "Everything is settled," she says, citing efforts by the Real Estate Regulatory Authority and Dubai Land

Department. "Now we are working primarily with end-users, operating smoothly. It's time to grow."

That optimism is hard-won. Jouini came to Dubai from Tunisia in 2001, as an employee of a stamped concrete

company. She felt overworked and underpaid, and so after only a year in the UAE, she started her own business.

Fifteen years, one slowdown and millions in transactions later, she helms a healthy brokerage with hundreds of listings and a team of 30.

"It's a promising market," Jouini says. "A woman will find success from what she puts in, both in work and in faith in herself. If she has both, she will make it."

Strong proof of that theory is Khadija Meziane El Otmani, co-founder and partner of Driven Holiday Homes. In 4 years, she has built a business partnership with Abdullah Al Ajaji through sweat equity in the company. Her part of the

business is a critical component to Driven Properties' operations.

Gender has played the biggest role for El Otmani. When she started Driven Holiday Homes in 2014, she says at first she hired only women because she found it difficult to find men who seemed willing to be managed by women.

"I felt that especially in real estate, you have to have a strong personality, you have to be a hustler," she says. "My background is as an Arab woman, a Muslim woman. I still had this bias."





At first, she recognised those qualities most in the women she interviewed. Over time, her opinion evolved, and now

the company has gender parity.

That doesn't mean she isn't still leading a women-first operation. Recently, she wanted to allocate office space for

children and their caretakers to come in and have a place to play and spend some time during the workday. She also wanted the space to serve as a nursery and nursing room for new moms on her staff.

But her company is growing too fast, and the space she had was soon taken over for meeting space. Still, it's on the

top of her priority list.

Looking to the future, much still depends on how well regulations are implemented to make it more attractive for

businesses - women-led businesses included - to be in the UAE.

Heatley puts it most succinctly: "I've never met anyone who regretted moving out here."

Source: Khaleej Times

Back to Index





PACE OF OFF-PLAN PROPERTY LAUNCHES

WILL CONTINUE TO TAPER IN UAE Tuesday, March 06, 2017

As the Dubai housing market continues to grow and options for buyers widen, a closer look into the data is necessary

to navigate investment decisions over the next 12 to 18 months. Over the years, there has been an explosion in the off-plan market driven by higher money flows as investors gravitate towards the plethora of incentives that have been

offered by developers.

In 2015, ready sales accounted for nearly half of the total sales in the market, whereas in mid-2017, it hit new lows

accounting for only 25 per cent. The growth in the off-plan market can be attributed towards a cornucopia of factors

that include (i) accessibility into emerging areas (ala Dubai South, Meydan and Creek Harbor) (ii) cheaper pricing of units (iii) payment plans and rental guarantee.

Off-plan properties are typically priced below their ready counterparts as developers try to entice investors into buying a property that is not built, consequently taking on a higher risk. A break-down into various communities such as

Business Bay and Jumeirah Village Circle reveals that initially off-plan sales were cheaper than the ready index, causing

the money flow to switch from one to the other.

However, in the last 18 months, there has been a reversal in this trend as the bulk of launches were higher than the

ready index. Developers have justified these higher prices with post hand-over payment plans and rental guarantees. However, as the gap continues to widen, we can expect a greater money flow in the ready market, consequently

narrowing the gap between the primary and the ready space. Evidence from the first quarter of 2018 shows that this is

already starting to transpire.

In other communities such as Dubai Marina and Jumeirah Lakes Towers, where the volume of launches has been far

lower compared to that of Business Bay, but the trend of off-plan prices being systematically higher than that of the ready space remains in place. This pattern in these communities is partly as a result of the "gentrification" that has

taken place, but as the slope of the price curve demonstrates, it is likely that in 2018, the gap between off-plan and ready prices will narrow.

A dissection of the off-plan launches reveals a drastic fall in Q4 of 2017, followed by a slow start in 2018. We expect

the pace of launches to continue to taper over the next few quarters especially as the flurry of incentives that developers have given has been exhausted; consequently, it is likely that focus will now start to shift on deliveries and

that the pace of launches will slow down.

Given the outperformance of the off-plan market in most observed communities in 2017, the amount of monies that

were allocated to the ready space was less than 1/4th of the overall monies invested. Predictably, this led to a widening

of the gap between off-plan and ready prices (phenomena witnessed globally). We opine that mean reversion will occur as investible monies start to rotate into the ready space, to a point where the price gap reaches mean historical levels.

This implies an upward trend in the secondary market.


Back to Index





UAE REAL ESTATE MUST ADAPT TO REMAIN

RELEVANT Friday, March 09, 2017

The UAE real estate sector has evolved considerably since the global economic downturn between 2008 and 2009, and

we now see developers increasingly searching for innovative ways to remain relevant in today’s changing market.

As lower growth has become the “new normal” in UAE real estate, and will remain so for some time, developers are

coming up with customised projects, product mixes and payment terms to offset supply pressure on demands.

Office demand

While a drop in rental rates and sale prices has characterised almost every real estate asset class during recent years,

the prime office sector has been resilient to overall market forces, and has so far shown signs of steady performance.

The best quality office accommodation in Dubai’s prime locations continues to be short in supply, for instance. As

demand from global corporate occupiers seeking quality properties continues to grow, developers are shifting their focus towards building Grade A office space, with over half of Dubai’s future supply expected to come from this

segment over the next 24 months. The rise in this asset class will put Dubai at a competitive position with other global

cities, and in turn is likely to boost demand.

Currently, the biggest game changer for the commercial market is ICD Brookfield Place in DIFC. This $1bn project is

significant due to its forward-thinking approach to design and product mix. Designed by the British architect Foster & Partners, the 54-storey building will house over 900,000 sq ft of Grade A office space and a 150,000 sq ft, five-storey

retail centre, with F&B offerings that rival those in key global business zones. With the first tenants expected next year,

this iconic tower will force other developers to raise the bar.

Moving forward, developers also need to build office space that takes into account the changing needs of the millennial

workforce and compliment an increasing number of corporates’ commitment to “wellness in the workplace” by offering some of the best facilities – including gyms, showers, open-plan offices, and more breakout rooms.

The demand for office space is also changing as more and more corporate occupiers are asking for greater flexibility in their tenancies and workspace setup arrangements.

An increasing number of firms from the UAE’s growing SME sector, for example, are looking for a plug-and-play

solution which effectively does away with fixed, long-term tenancy agreements. This is something that landlords and developers need to be mindful of during the build and fit-out phase.

Retail squeeze

In retail, Dubai holds top rank in the region, and second in the world for the number of international brands present,

according to the CBRE’s 2017 edition of “How Global is the Business of Retail”.

As the UAE continues to see a huge influx of business and leisure travellers, it’s not surprising that the country also ranked the third most attractive target market for new retail entrants.

This has helped major retail destinations in Dubai to maintain strong performance, both in terms of occupancy (95 percent to 100 percent) and average rental rates (AED7,266 per sqm per annum), although other non-mall centres

have come under pressure over the last 12 months.

However, Dubai’s retail sector is expected to witness exponential change in the long run as around 1.7 million sqm of

new retail space is slated to come online by the end of 2020 or early 2021. This, along with growing competition from

e-commerce brands, will put downward pressure on mall occupancy and rental rates. With the UAE’s non-store retail spending expected to double from current $2bn (2017) to $4.1bn by 2021, according to data from Euromonitor

International, the brick-and-mortar retail operators will continue to face challenges if they fail to adapt to changing customer behaviours.





Interestingly, a number of players, including Al Tayer Insignia which launched the online platform Ounass to offer a

variety of high end designers’ brands with a two-hour delivery time within Dubai, have already responded to the market disruption the rise of e-commerce has created.

As the government looks to position Dubai as one of the world’s most sought-after smart cities for business, travel and living, every sector of the economy has a role to play. The real estate sector has faced adversity head-on because of

the cyclical nature of any real estate market and has shown immense levels of adaptability to the changing business

environment.

The key is to keep that momentum going, and innovate and evolve to sail through any turbulent periods before the

market rebounds in the future.

Source: Arabian Business

Back to Index





DAMAC AWARDS A SECOND MAJOR

CONTRACT TO ARABTEC Wednesday, March 07, 2017

Damac Properties has awarded a Dh424-million contract to Arabtec to build additional villas in Akoya Oxygen.

Emirates Falcon Electromechanical Co., a subsidiary of Arabtec, will be carrying out the MEP works for the project. This is the second contract to be awarded to Arabtec in the last 12 months and will see it build another 916 villas. In August

2017, Arabtec was awarded a Dh628-million contract for 1,296 villas at the same development.

“Damac continues to accelerate construction at Akoya Oxygen, to continue villa development at our 55-million-square-

foot green development in Dubailand,” said Mohammad Tahaineh, Senior Vice-President of Commercial at Damac

Properties.

Source: Gulf News

Back to Index





OFFICES IN DEIRA AND GARHOUD FEEL

RENTAL PRESSURES Wednesday, March 07, 2017

Landlords with older or poorly maintained offices in Dubai are feeling the heat. Second-tier properties in locations such

as Deira and Garhoud have seen rentals drop 17 and 14 per cent, respectively, over a 12-month period up to end 2017, according to the latest update from Cluttons.

But at the higher end of the office property scale, rents remain unchanged in what remains an extremely tight leasing market. An exception were the Grade A buildings in Business Bay, where rents average Dh140 a square foot and saw a

17 per cent uptick during the period. Dubai Production City offices also recorded upward mobility, up 7 per cent for an

average Dh75 a square foot.

“In the office market, upper limit headline rents have been affected, with occupiers either sitting tight, regearing leases,

or continuing to consolidate operations,” said Faisal Durrani, head of Research at Cluttons. “In fact, five of our 24 submarkets registered minor downward adjustments during the final quarter of last year, with the weakness persisting

into 2018.

“It is our view that this will continue for the remainder of the year with rents set to fall Dh5 per square foot to Dh20. However, core free zones are likely to buck this trend, with rents holding steady.”

For now, the VAT roll-out has not had any “real impact” on landlord demands. “While absorbing the 5 per cent VAT costs does not appear to have been considered yet, this may well emerge as an option should rental weakness linger

into 2019,” said Paula Walshe, director of International Corporate Client Services at Cluttons.

Source: Gulf News

Back to Index





LOWER LAND PRICES HELP DEVELOPER’S

CAUSE IN DUBAI Wednesday, March 07, 2017

There are still ways developers in Dubai can avoid passing on higher construction costs and VAT charges to the buyer.

Getting smart with the land purchases is one, according to the head of Danube Group.

The developer on Wednesday launched its latest freehold venture, the Jewelz, in the Arjan cluster (within easy reach of

Mall of the Emirates). It had acquired the plot at “about Dh110 a square foot compared with Dh140-Dh150 that we spent for an earlier project”, said Rizwan Sajan, chairman. “It immediately translates into cost benefits for us on the

project cost side and helps offset whatever we have to pay up as VAT.

“And given the market situation, developers need to think twice before passing on higher costs to buyers. At the current land prices, at least in some of the less mature locations, developers can gain advantages.”

The Jewelz project, dominated by studios, has an estimated project value of Dh300 million.

Danube had been planning a launch in late Q4 in 2017 but then decided to hold back. The market had gone into a cold

spell for buying activity and Sajan said it was better to take on an extra cautious approach.

“We have studios starting from Dh465,000 and the way payment plans are structured, the buyer pay up about 46 per cent at the time of handover,” said Sajan. “Given that studios in Arjan are getting Dh50,000 a year in rents, they can

meet the rest of their payments through rental proceeds. From a RoI (return on investment) perspective, we are talking about double digits.

“As for our project portfolio, Danube is now into the full launch, build and deliver mode in a three- to 3.5-year time

frame. Our first projects have been handed over and more are scheduled this year. It counts with buyers that a developer has a consistent track record of handovers as well.”

With the latest launch, Danube gets back to one of its favoured spots — Arjan. Its launch before this one had been a high-rise in Business Bay.

“In many ways, we are back in our comfort zone of Arjan,” said Sajan. “But we did do well with the Business Bay launch, having now sold more than 90 per cent of the units. It took slightly longer, but that was in keeping with the

pace of the market.

“We will keep looking for more plots to launch ... in another three months and if we get to our sales targets on Jewelz. One thing I will not do is create a land bank first and then roll out launches. For us, property development is still a

secondary business line after building materials.

“That being the case, I am fine with buying one plot, launching and then repeating the process. I prefer to stick to a

set pattern.”

Source: Gulf News

Back to Index





DUBAI’S LUXURY PROPERTIES WIN BACK

GLOBAL INVESTORS Wednesday, March 07, 2017

Developers in Dubai building homes worth Dh10 million and more have reasons to hope - global high networth

investors are once again renewing their interest in such super-prime offerings. And these funds will have less of the speculative flavour about them.

“The luxury real estate investor base in Dubai is twice as diverse as in London or New York - that breadth of demand will provide some stability,” said Liam Bailey, Global head of Residential Research at Knight Frank, the London

headquartered consultancy which issued its annual wealth report on Wednesday. “There had been a number of

property markets worldwide that had gone through a challenging period in the last couple of years. Dubai has had issues on pricing and we had seen the same thing happening in London.

“But alternative investments (including real estate) continue to take in demand from wealthy individuals. We are living in extremely uncertain times (rife) with generational conflicts rather than of the national kind. And the best safe haven

in such times is real estate.”

In Knight Frank’s rankings, Dubai is placed in the 85th spot among the top 100 cities for luxury real estate, with Delhi and Bengaluru occupying the 83rd and 84th spots. Dubai’s top end of the residential market saw prices decline by 3.3

per cent over a 12-month period up to December last, while Abu Dhabi, which is in 95th place, saw a decline of plus 10 per cent.

At the top of the table are the Chinese city of Guangzhou, where values had shot up 27.4 per cent, and Cape Town,

where luxury residences enjoyed a 19.9 per cent gain.

The re-entry of wealthy investors into Dubai’s real estate scene has a lot to do with the still soft pricing. “Dubai still has

some way to go before it rates as a maturing market,” said Bailey. The investor interest is not just not resonating in the residential space, but even underpins commercial assets such as industrial property.

“Australia and New Zealand are the other markets that are well placed in drawing more global investor interest. Even though from a domestic buyer’s perspective, both are already priced too high.”

That a number of high-end developments are being readied in Dubai should keep investor interest in good order. If the

Bulgari-branded mixed-use development off Jumeirah was the focal point for such demand last year, the likes of Bluewaters and Nikki Beach will sustain inward interest. And so will the Atlantis Residences, One Palm (with its Dh102

million penthouse), and all of the villas in MBR (Mohammad in Rashid) City in clusters such as Dubai Hills Estate and the Hartland.

According to Maria Morris, Partner at Knight Frank, “Dubai’s prime real estate is going through a transition and there

are now various opportunities that were not there even five years ago.”

And the rush by developers in the last two years to come out with more mid-market options means there is far less

chance of an oversupply happening at the prime end. Developers holding ready stock or building new ones priced in the tens of millions needn’t worry - there are buyers out there.

In Dubai, luxury is still a bargain

* Someone with $1 million to spend will find that it can fetch him 138 square metres of luxury real estate in Dubai. The

same in Monaco would only get 16 square metres, 22 square metres in Hong Kong, and 25 square metres in New York,

according to Knight Frank’s Wealth Report.

* The report names the Palm as among the “peak performers”, alongside Sydney’s Forest District and Shanghai’s

Hongqiao CBD. With the development of The Pointe and Nakheel Mall, offering some 5.9 million square feet of





entertainment, dining and retail, the appeal of the (Palm’s) stem is set to broaden. A two-bedroom apartment starts at

$750,000, while garden homes and villas start at US$3 million, says the report

Source: Gulf News

Back to Index





INVESTORS BACK TO BUYING LUXURY

HOMES IN DUBAI Tuesday, March 06, 2017

Investors are renewing their faith in Dubai’s luxury offerings and at prices that are a bargain to what they would have

to spend in Singapore or Paris.

In Dubai, $1 million (Dh3.67 million) in investments would fetch 150 square metres of a super-luxury home, while in

Paris the comparable figure would be 78 square metres and 90 square metres in Singapore. If someone was scouting for high-end in Monaco, $1 million would get him 22 square metres, and 23 square metres in Hong Kong, according to

a new report from Core Savills.

Dubai’s high-end residences are about “40 per cent less expensive than Singapore and 50 per cent less expensive than Moscow and Paris,” states the report. “Dubai’s ultra-prime market also is comparably inexpensive compared to

prominent global cities such as Shanghai and Tokyo with average prices almost 60-70 per cent lower.”

The market dynamics over the last two years could also help keep investor interest in the city’s prime properties.

Currently, this category made up less than 3 per cent of all residential transactions in Dubai, and there is little chance

of demand and supply suffering an imbalance any time soon. And this is quite a contrast to what is happening further down the price chain where a flood of new launches could see well over 50,000 homes being added in the next two to

three years.

The premium space is “likely to see continued investment inflows from global and regional investors, causing prices to

stabilise - marginally contracting the gap in capital values with other global cities and witness gradual yield compression

over the long term,” the report adds.

Source: Gulf News

Back to Index





DUBAI’S MOST SOUGHT-AFTER DISTRICT Wednesday, March 07, 2017

As Mohammad Bin Rashid (MBR) City’s gigantic master plan progresses, several communities within and around the

Meydan racecourse are already offering comfortable living. While most residential communities close to central Dubai

are apartments, MBR City is teeming with villas.

“Most of the other communities within 6km of central Dubai are apartments, says Riyas Merchant, CEO of Realty Force

Real Estate, a broker specialising in rental and sales in the area. “So the closest existing villa communities can only be found within Meydan and MBR City’s District One. You’re still in a quiet setting and only a few minutes from the hustle

and bustle, with a quick escape out of the city. In terms of off-plan villa buys, [the] beautifully planed Dubai Hills also in MBR City comes into play, but it will take time to become a liveable community by 2020 or 2021.”

MBR City mansion

MBR City is popular to those who want to live in villas close to central Dubai

Lewis Allsopp, CEO of Allsopp & Allsopp, says the location and the planned amenities are among the top reasons people

should buy into projects in the area.

“The first [reason to buy here] is the real estate adage, location, location, location. It’s going to be the closest mixed

residential community to Downtown Dubai, and centrally located to everything,” says Allsopp. “Added onto this is the

sheer amount of leisure, retail and entertainment facilities that are to come. Not only does it promise to be one of the best places to live in Dubai, it should also prove to be an excellent investment.”

MBR City District One: from beach to snow

The most exclusive and unique has to be Meydan-Sobha’s District One: an urban beach life style thanks to the Crystal

Lagoons, with the upcoming Meydan One mall with its ski slope offering an interesting contrast.

District One’s first phase, comprising 180 four- to six-bedrooms villas, have already been handed over. The villas come in three types: contemporary, Arabic modern and Mediterranean.

MBR-City-District-One-villa-arabic design

An Arabian-themed mansion in MBR City District One

“Price points are at the higher end as this is a premium location in this area,” says Merchant. “However, they are great value for money; this is the first community in the Middle East that has the Crystal Lagoons — it looks beautiful. The

money and time spent by the developers to build this justifies the value.”

The Lagoons are now around 80 per cent complete, and with sun beds and umbrellas in place already, the beach could already be used, accessible via the sale centre.

“Homebuyers look for views of a water body, or golf course, and an address,” he says. “This project is an address and it has the water.”

The villas, all with a private pools, are attractively priced. A four-bedroom unit could be had for around Dh9.5 million-

Dh10 million. “You could even get one for Dh9 million. Prices have gone down compared to when they were launched in 2013 during the mini-boom. A four-bedder back then was Dh11 million-Dh11.5 million, so there’s about a million or

million and a half drop per unit across all unit sizes.”

Many of the buyers are end users, of which around 40 per cent have moved in. “Others have placed their units back

into the market for rent or sale,” says Merchant. Rent stands at around Dh360,000 for a four-bedroom villa. “For the investors, it’s a 3.5 per cent return on investment, which is reasonable,” opines Merchant. Many of the homebuyers

have moved into their residences.

Although he isn’t sure about the upper ceiling, an appreciation of the current market pricing in the future was certain. “The premium segment right now has taken a big hit; the mid-market is selling. But it’s an interim situation,” he

reasons.





Phase two

The second phase of District One with 280 villas is currently under construction. “The seven- and eight-bedroom mansions will be ready in April, and the rest of the second phase by end of next year,” Merchant says.

“The master developers have taken into account not to disturb existing residents by creating barriers and staying within construction time frames. The first phase is manicured and completely sectioned out. Phase two is a construction site,

which you won’t realise from inside the community. Only, if you’re on the edge will you notice mansions are still being

built, but it affects no more than a handful of villas, although we have difficulties selling and renting them.”

The community lying closer diagonally to one side of Meydan racecourse features 198 five-bedroom villas with three

different layouts.

“This development is the best value for money today generally because of the unit sizes under the Dh10 million mark,”

notes Merchant. “The pricing here has held firm, about the same than a year ago. A lot of end users bought, who would re-mortgage them thanks to their value.”

MBR City Millennium Estates villa

Villas in Millennium Estates have a contemporary design

The largest villa, Type A, which spans 7,370 sq ft with a 3,000-sq-ft garden area, goes for around Dh8 million and

leases close to Dh300,000. The smallest villa, Type C, is 5,223 sq ft and has a garden area of around 2,000 sq ft.

“The villas are all contemporary; each layout is so different,” says Merchant. “Type A faces the park and is more

premium. Families like and want to purchase Type C, of which only 40 were built. They are mostly occupied by their

owners or rented out.”

The community also offers plenty of parks. “It’s a very closely knit community, and they keep improving it, now with a

tennis and basketball court,” Merchant points out.

While there is no pool or gym, Merchant says that the master developer has plans to build a huge paid pool and gym

by end of next year.

Polo Residences and Townhouses

Adjacent to Meydan, the Polo Residences’ 28 mid-rise apartment buildings are already enjoying popularity. A one-

bedder in this tranquil community can be had for Dh85,000-Dh90,000 per year in rent. “It’s the only apartment community that is ready. Most are either in the process of being or already handed over. It’s a large rental market as

people want to move to Meydan because of accessibility into the city, schools nearby,” says Merchant. “It’s the up-and-coming zone.

There are 102 four-bedroom town houses in the community. “Polo Residences has units left to sell and rent, as

investors have bought dozens of units at once, and are putting them back in the market. Pricing has held up as there is good sales demand.” Schools nearby include those in Sobha Hartland. The Polo Residences will also feature the first

convenience retail opportunity in the area with Spinneys, which will come online by year-end.

Meanwhile, the Polo Townhouse community has 102 three- and four-bedroom residences. Residents can avail of a

clubhouse with a guest lounge, play area, pool and gym. “Most of the town homes are either occupied by the buyers or

rented,” Merchant remarks. “You might not even have eight units for sale there in total.

Polo Residences has units left to sell and rent, as investors have bought dozens of units at once, and are putting them

back in the market. Pricing has held up as there is good sales demand.

Riyas Merchant

“The homes are good value for money with good sizes. Pricing here has held as it’s a small community and there isn’t anything else around there, so you take it or leave it. The average pricing today is Dh1,150 per square foot; before it

was Dh1,200.”

Up and coming communities

The only other ready community is Meydan Heights, reserved for aircraft crew at Emirates, in District 11 of MBR City.





Anyone wanting to get into the area today would have to look at the new communities springing up. District 11 will be

home to G&Co.’s Cassia, Jade and Viridian at The Field, the same developer behind the Millennium Estates.

Then there is Sobha Hartland, which is being constructed in phases and includes villas and apartments, and Ellington’s

Wilton Terraces. Developer Azizi is spreading its wings wide with its Riviera project and Oriental Pearls. A Chinese developer is building the Royal Pearls apartments, selling at around Dh1,000-Dh1,250 per square feet.

“There hasn’t been that much competition in this zone, but now all of a sudden Meydan has become a hotspot and the

various districts, not to forget Dubai Hills also within MBR City, are areas to look at if one is after high-end independent villas with modern designs set in well-planned urban communities,” says Merchant.

The developer behind the Polo Residences is also building MAG Eye, adding a new large town house and apartment community close to Meydan to the mix.

“MAG as a developer is very thoughtful, has a good reputation and has delivered whatever it has promised. And their quality is something to look forward to. They have seen the pulse of the market with how fast their Polo Residences

sold,” remarks Merchant.

Looking at the current makeup of buyers in the area, Merchant says there are a lot of Indian and Pakistani buyers as well as Arab investors from Yemen, Iraq and Jordan. “They are probably setting up base here and feel this is the right

community for them, with big villas for big families.”

Existing residents are mostly business owners, professionals working in Dubai International Financial Centre, as well as

doctors and the likes, Merchant says.

“Villas in Jumeirah are getting older with maintenance issues, so people want to move into brand new villas in Meydan. It’s a trend and this is where a lot of the buyers and tenants are coming from.”

The raison d’être for investing

“Real estate investment is a long-term perspective, which may be easier said than done,” says Merchant. “[What is] the

purchase intention? Is it capital appreciation? How long can investors hold on to it and do they want to live in it themselves? I would choose high-quality units to live in, and smaller cheaper units to buy and sell, or rent out, as they

attract a higher capital appreciation,” says Merchant.

While Meydan already provides a number of amenities, including a racecourse, hotel, golf course and a tennis academy, the area is far from complete. “You’re really buying into a very exciting future,” says Allsopp. “Currently there isn’t

really anything in terms of community centres and facilities etc., but there is an incredible amount on the horizon. The first part of the crystal lagoon will be open soon, there is going to be a huge mall, a ski slope, an adventure zone,

restaurants, café’s and so on.”

And there is another a good reason to choose an area that is still developing: prices are cheaper and sure to appreciate.

“The area tops others in terms of accessibility, modernity and affordability,” says Merchant. “The price per square foot at Dh1,100-Dh1,150, apart from the more prestigious District One villas at Dh1,350 -Dh1,400, probably equals

everything else that is being built around Dubai.

“Real estate is the driving factor of this market; if it does well other businesses do well and right now they are waiting for real estate to pick up. Three or four years from now people who invested in Meydan/MBR City won’t regret it,

everything will fill up.”

Source: Gulf News

Back to Index





DUBAI’S SUSTAINABILITY PLAN Tuesday, March 06, 2017

As Dubai continues its journey to achieve its energy targets, it is becoming increasingly imperative that the various

stakeholders along the energy value chain join hands and actively contribute to this vision. The built environment is the

single largest consumer of energy and thus any energy efficiencies here will translate into serious energy savings.

Managing demand and optimising energy use are becoming central to the aim to raise energy efficiency by 30 per cent

by 2030. And the government has appointed several regulatory bodies to assist the built environment with this transition.

How can Dubai’s built environment contribute to energy efficiency and savings? “Most of Dubai’s energy is consumed in or around buildings and there is a lot that stakeholders along the entire value chain of the built environment can do to

reduce this consumption,” Elie Matar, head of electricity at Dubai’s Regulatory and Supervisory Bureau (RSB), tells PW.

RSB has been established to develop the regulatory frameworks for energy supply and efficient-energy use.

He suggests a wide spectrum of initiatives, such as:

• Buildings should be designed according to high-efficiency standards. Dubai Municipality’s green building regulations or Sa’fat sets minimum requirements to improve the performance of buildings by enhancing the planning, design,

construction and operation of buildings and hence reducing consumption of energy, water and materials.

• Buildings should be built and commissioned as designed to attain the performance standards they were intended to achieve.

• Buildings, including their systems and equipment, also ought to be operated and maintained properly to perform their intended functions efficiently.

• Building users and occupants have a major say in energy consumption and need to consume responsibly and

minimise energy and water wastage.

“Therefore, all players from government authorities, developers and owners, consultants, contractors and service

providers to building occupants, hold key roles in the energy efficiency journey,” says Matar.

What regulations to pursue?

A mix of mandated and voluntary regulations can help foster the market. While strict standards are being applied to new builds in Dubai by means of a green building code, the regulations bureau is helping demand-side management —

managing the consumer demand for energy through initiatives like retrofits. Retrofits have become central to the

energy drive, resulting in significant financial and energy savings as the built environment benefits from new technologies and replacement of old fixtures, water systems etc. RSB has also been very active in helping shape up

Energy Service Companies (Escos) that help customers implement energy saving measures across the built environment, and make buildings more eco-friendly.

Demand-side management

Also known as energy demand management, demand-side management is the modification of consumer demand for energy through various methods such as financial incentives and behavioural change through education.

Escos have long suffered from a lack of framework and regulations to govern the energy-saving contracts. But with the intervention of RSB, the role has become streamlined, with the accreditation offering customers a sense of confidence

that contracted companies are governed by a regulatory standard. A building owner looking to enable energy savings now has a host of accredited Escos to choose from, including some top facilities management (FM) companies.

Benefits for FM companies, end users

The Esco accreditation scheme is promoting trust in the market and helping owners overcome the barrier of identifying capable Escos and entering into fair energy performance contracts (EPC). The growing number successfully retrofitted

projects are a sure sign of its success. The scheme offers a measurement and verification (M&V) protocol based on





international references, and the accreditation process assesses an Esco’s M&V practice and its ability to effectively

measure savings within changing environments and conditions.

Esco

An energy service company (Esco) is a commercial or nonprofit business providing a broad range of energy solutions, including designs and implementation of energy-saving projects, retrofitting, energy conservation, energy infrastructure

outsourcing, power generation and energy supply, and risk management.

Being accredited gives Escos higher credibility and grants them exclusive access to Etihad Esco projects, Dubai’s super Esco that manages audit and retrofit projects for government buildings and other large-scale projects for the private

sector. Etihad Esco and end users benefit from having a shortlist of competent, pre-qualified Escos to choose from to investigate their savings potential and implement their energy efficiency projects.

Other ways to increase energy efficiency

The built environment should not be dependent on regulation to start energy-efficiency campaigns. As energy

consciousness increases more developers, building owners and occupants realise the impact that energy efficiency can

have on their bottom line, Matar says installing energy and water-efficient systems is becoming more common.

How can building owners raise awareness?

Building owners and managers can raise awareness on energy efficiency among building users. They can inform occupants of the measures implemented to raise energy efficiency and reduce consumption, and educate users on how

to conserve energy and water.

Benchmarking is another useful way to drive energy efficiency by gauging the performance of one’s building or portfolio of buildings against comparable ones and recognising improvement and savings potential.

Matar says some organisations have developed such benchmarks for building portfolios to which they have access, while the RSB is working on designing an energy and water rating scheme on a wider scale.

Source: Gulf News

Back to Index





NEW, DH1.2B MALL RISING IN DUBAI Monday, March 05, 2017

Mall highlights:

Cost: Dh1.2 billion

Size: 17 million sq ft

25 metre high crystal dome straddling the mall’s Monorail station

15-theatre VOX Cinemas complex

350 shops, restaurants and leisure attractions

5 floors

3 underground parking levels

4,000 parking spaces

2 fountains

2 waterfalls plunging 65 ft into the mall

Fine dining roof plaza

Spectacular views of The Palm Jumeirah island, Arabian Gulf and Dubai skyline

The Dh1.2-billion Nakheel Mall is rising at the heart of the Palm Jumeirah. The mall will also be the access point for the 240-metre ascent to the public viewing deck at The Palm Tower, Nakheel’s 52 storey hotel and residential project,

rising adjacent to the mall. Gulf News file picture

The news comes as a giant, 600-tonne tower crane is removed from the construction site, signalling a major milestone

in Nakheel Mall’s progress.

All under and above ground floor and ceiling work has been completed, with interior works, such as granite and glass fixing, well on track.

Meanwhile, the centre piece of the mall – a 25 metre high crystal dome that will straddle the mall’s Monorail station – is also taking shape.

Inside the mall, fit out of the 60,000 sq ft, 15-theatre VOX Cinemas complex has begun, with more retailers due to start

fitting out shortly.

Nakheel Mall, part of Nakheel Malls’ Dh16 billion expansion that will take its total retail space to over 17 million sq ft,

has 350 shops, restaurants and leisure attractions across five floors, plus three underground parking levels with 4,000 spaces.

An artist's view of the Nakheel Mall and the Palm Tower, which will be connected to the Monorail. — Gulf News File

Features include two fountains, two waterfalls plunging 65 ft into the mall and a fine dining roof plaza with spectacular

views of the island, Arabian Gulf and Dubai skyline.

Access to public viewing deck at 240 metres

The mall will also be the access point for the 240-metre ascent to the public viewing deck at The Palm Tower, Nakheel’s

52 storey landmark hotel and residential building, also at an advanced stage of construction.

The Palm Tower comprises a 289-room St Regis hotel and 432 luxury apartments, topped off by one of the world’s

highest infinity pools on the 50th floor.

Above that is a 51st storey restaurant complex, with the rooftop viewing deck, offering awe-inspiring views across island, sea and city views on the 52nd level.





Large-scale projects

Other large-scale projects in Nakheel Malls’ growing portfolio include Deira Mall, the Middle East’s largest mall, for which an Dh4.2 billion construction contract was signed last month; Deira Islands Night Souk; Al Khail Avenue; The

Circle Mall; Nad Al Sheba Mall; Warsan Souk; Discovery Gardens Mall; and major expansions to Ibn Battuta Mall and Dragon Mart. Nakheel Malls currently has 4.5 million sq ft of retail space in operation, with another 12.5 million sq ft on

the way.

Nakheel Mall is one of a host of new Nakheel developments — across the residential, retail, hospitality and tourism sectors — on Palm Jumeirah.

Among the others are the iconic PALM360 two-tower hotel and residential complex featuring a Raffles hotel, Raffles-branded residences including 12,000 sq ft penthouses, and the world’s largest sky pool.

The Pointe, The Palm Promenade, Palm West Beach, The St Regis Beach Club and Palm Beach Residences are also under construction or development.

Source: Gulf News

Back to Index





EMAAR LAUNCHES LUXURY HOME PROJECT

ON DUBAI CREEK ISLAND Monday, March 05, 2017

Emaar Development has launched a collection of super-luxury homes at The Grand, located near the heart of Creek

Island in Dubai Creek Harbour.

At 62-storeys, the high-rise features one-, two- and three-bedroom apartments, four-bedroom penthouses, and

podium-level townhouses with private gardens.

“Dubai Creek Harbour is one of the most sought-after lifestyle destinations in the city,” said Ahmad Al Matroushi,

managing director of Emaar Properties. “With tremendous economic value to be generated by the new global icon,

Dubai Creek Tower, and a wide range of retail, F&B and leisure attractions, it is truly a city of the future.”

Source: Gulf News

Back to Index





DH8-BILLION BLUEWATERS ISLAND OFF

DUBAI TAKES SHAPE Tuesday, December 05, 2017

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

Dubai, on Monday visited Bluewaters Island, a man-made mixed use island located off the coast of Jumeirah Beach Residence.

The development, by Meraas Holding, will include hotels, housing units and service and recreational facilities with total investments of Dh8 billion.

Shaikh Mohammad underlined the value of unique development projects and their importance in consolidating the

UAE’s leading position as a tourism and investment destination on the global stage.

Tourist destination

“The UAE has become a favourite destination to visitors and investors from the region and entire world, as we want our country to always remain the land of happiness and hope for our people and visitors,” Shaikh Mohammad said.

He said these major projects offer thousands of jobs in various specialities, boosting the job market and increase

opportunities for youth.

Shaikh Mohammad was accompanied by Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and

Chairman and CEO of Emirates Airline and Group, Mohammad Ebrahim Al Shaibani, Director-General of Dubai Ruler’s Court, and Mohammad Al Abbar, Chairman of Emaar Properties.

Source: Gulf News

Back to Index





ARABTEC UNIT WINS DH424M CONTRACT

FOR DAMAC'S AKOYA PROJECT Thursday, March 08, 2017

Arabtec Holding, the UAE’s biggest contracting company by market capitalisation, said on Wednesday its main

construction arm won a Dh424 million contract from Dubai-listed real estate developer Damac Properties.

Arabtec Construction, a wholly-owned unit of Arabtec, will build 916 villas at the real estate firm's Akoya Oxygen

development, it said in a statement to Dubai Financial Market, where its shares are traded.

Emirates Falcon Electromechanical company, another Arabtec subsidiary, will carry out mechanical, electrical and

plumbing work for the project.

“The on-boarding of repeat business from our clients is a testament to our strengthened relationships across our core geographies and in our core competencies,” Arabtec’s group chief executive Hamish Tyrwhitt said.

The project entails construction of units in phase six of Damac's Akoya Oxygen master development, comprising a built-up area of approximately 148,000 square metres, according to Arabtec. Work will commence this month and will take

22 months to complete, it said.

Arabtec last year completed a recapitalisation programme by raising Dh1.5 billion via a rights issue and reduction of capital to cancel nearly Dh5bn of accumulated losses from previous years when construction activity dipped in the wake

of the UAE's slowing economic growth.

The construction firm, whose annual losses sank to Dh3.4bn in 2016, returned to profit in 2017, a year which saw it win

a number of contracts, including work on Dubai's Expo 2020 pavilion. In the fourth quarter, it also finalised a Dh950m

contract with Emaar Properties and a Dh1bn contract with Dubai Properties.

Arabtec's net profit attributable to equity holders for 2017 climbed to Dh123.1m, while revenues grew 12 per cent to

Dh9.1bn from Dh8.2bn in 2016.

The project backlog for the company, in which Aabar Investments holds a 37.7 per cent stake, stood at Dh17.2bn at

the end of last year.


Back to Index





DEVELOPER WOOS BUYERS WITH MONTHLY

PAYMENT, RENT GUARANTEE Wednesday, March 07, 2017

End-users and investors in Dubai have never had it this easy to purchase property. Danube Properties is targeting both

buyer segments with its 10th project - Jewelz - in Arjan with its 1 per cent monthly payment plan and 15 per cent rental guarantee.

The Jewelz project comprises 463 fully furnished units and has an estimated project value of Dh300 million. The average price per sqft at the property is approximately Dh1,000. A studio at Jewelz costs Dh465,000, 1-bed is

Dh750,000 and a 2-bed comes for Dh1 million.

"Pay 46 per cent until handover and take your keys. A studio rents for Dh42,000 in Arjan. So, an investor can pay the remaining amount through rental proceeds and get a RoI of approximately 16.8 per cent," said Atif Rahman, director

and partner, Danube Properties.

The property will charge owners a service fee of Dh12 to Dh14 per sqft.

Danube Properties acquired the Arjan plot for about Dh110 a square foot compared with Dh130 to Dh150 that it spent

for an earlier project, said Rizwan Sajan, chairman and founder of Danube Group. "There has been a 10 to 15 per cent reduction in land prices. This translates into cost benefits for us on the project cost side."

However, the developer will only buy another plot once it has achieved sales in excess of 70 to 80 per cent on its new project. "We have a conservative approach to development. We don't want to be overly aggressive," added Sajan.

Danube's high-rise in Business Bay, Bayz, is 95 per cent sold out, said executives. With Jewelz, Danube Properties'

development portfolio will be worth Dh3.3 billion.

The developer has sold around 1,000 units in its earlier projects launched in Arjan - more properties than in any other

community. "Arjan is a fully developed community where 90 per cent infrastructure is already ready. Some developers deliver affordable housing in areas which will take 5 to 10 years to develop. Jewelz will be delivered by September

2020," Sajan informed.

The developer aims to deliver 4 projects this year worth Dh1.5 billion and spanning 1,400 units. It will also open 3

offices in Oman, Kochi and New Delhi this year.

Talking of project progress, Rahman said utilities have been connected for the Dreamz townhouses in Al Furjan and handover will commence soon. Danube is the process of securing completion certificates for Glitz 3 in Studio City.

The developer currently has 6 million sqft under construction in Dubai.

"There is big demand for affordable housing. How many developers that launched are actually delivering units? Not

more than 15,000 units are being delivered every year. Rentals are still robust in the affordable housing segment,"

observed Sajan.

He also suggested investors and end-users to buy Dubai property now before prices rise after Expo 2020. "Dubai

property is not here just for Expo 2020. Property prices in Shanghai skyrocketed after the city hosted the Expo because of global awareness. Dubai will see the same phenomenon. Prices will go so high that today is the right time to buy

Dubai real estate," he concluded.


Back to Index





DUBAI DEVELOPERS REACH OUT TO

CRYPTOCURRENCY INVESTORS Tuesday, March 06, 2017

A handful of developers and landlords in Dubai are going down the cryptocurrency route in accepting Bitcoins as a

mode of payment from investors/tenants. What's more, a few are even offering discounts in project costs for buyers paying with cryptocurrency. Clearly, in a subdued sales market, industry players are thinking out of the box to target

crypto investors and help divest their wealth into tangible assets.

The volatility displayed by Bitcoin at the start of the year when it soared to $20,000 and currently trading above

$11,000 can be a dampener for anyone looking to close a property deal in that currency.

"There is little evidence to suggest that cryptocurrencies are getting widespread usage in the real estate market, beyond the one-off announcements that have been made. This is obviously due to the volatile price nature these crypto

assets have witnessed, as well as a wide series of warnings [including from the UAE Central Bank] that have repeatedly cautioned investors from using the same," says Nasser Malalla, senior partner at the law firm of NP Associates.

The UAE Central Bank has issued warnings against trading of any digital currency as it hasn't given any licences for

such currencies. As per sub-section D.7.3 Provisions for Virtual Currencies of the Regulatory Framework for Stored Values and Electronic Payment Systems published January 1, 2017: "All virtual currencies [and any transactions

thereof] are prohibited". This is probably due to the speculative nature of this medium of exchange.

"It is our understanding that investors who allegedly purchased properties using cryptocurrencies, as per some media

reports, did not make a direct payment using the technology. Rather, it was the equivalent value of the cryptocurrency

in UAE dirhams," reckons Haider Tuaima, head of real estate research at ValuStrat.

"We haven't actually brokered any agreements where cryptocurrency has played a part. From anecdotal evidence, it

has come into the market, but only at a very marginal level. There are too many issues with it at the moment, first and foremost its volatility. It's hard to structure a deal on something that can fluctuate in value so much from one day to

the next - how do you set the value? On top of this, to actually transfer Bitcoin is still quite a complex and convoluted process and it's not a system that can handle a great number of transactions in one day. So to make it scalable for

more regular usage would require a lot further development," observes Lewis Allsopp, CEO of Allsopp and Allsopp, a

Dubai-based brokerage firm.

Dubai became one of the first cities in the world where residential real estate could be bought and sold in Bitcoin or

similar digital currencies when Aston Plaza and Residences in Dubai Science Park announced that its off-plan units could be purchased using digital currencies in September 2017.

Recently, Samana Developers, a Dubai-based developer, offered a 7 per cent discount to buyers of homes in its maiden

project who want to make payments through cryptocurrency. MAG Lifestyle Development also said it is ready to accept payments in Shariah-compliant cryptocurrencies, including OneGram (backed by a gram of gold). The developer also

announced in December 2017 a 5 per cent discount for digital buyers in any of its 8 current real estate projects.

The Star Business Centre, which operates and leases fitted out offices, confirmed in January that it would accept

cryptocurrencies as a mode of payment for services rendered. Its tenants can pay rents and service charges by using digital currency along with the traditional payment systems.

"At the present moment, it appears as if this is another tactic by which developers can distinguish themselves, and is

unlikely to go mainstream until and unless crypto assets themselves become more widespread in their usage," adds Malalla.

Cryptocurrency usage in properties is starting to gain traction in Dubai, however, it is yet to go mainstream. "This would hinge on local regulations, credibility of companies providing related products/services and willingness of people

to adopt the innovation," says Murtaza Khan, CEO of Etherty, a blockchain-based, real estate-focused trading platform.





"I find it hard that a developer, given the enormous challenges in real estate development and the capital pumping

business it is, would ever speculate with his product using a cryptocurrency dealing," comments Sailesh Israni, MD, Sun & Sand Developers Group.

"Investors should conduct enough diligence before investing. It may sound like a decent marketing opportunity for developers by using the latest technological advances to gain efficiencies and reach wider audiences, but it's more than

that. Developers have realised that there is a fast-growing community of crypto-investors - a lot of them have become

very rich in the last few years, and there are very few options for them to spend their newly-earned wealth. Since real estate is a lot more stable investment, this is becoming a massive market and a lot of developers will be vying for

attention from these investors who are looking to diversify their portfolios by offering them deals and payment options that involve crypto-currencies," adds Khan.

Until regulation is released to control cryptocurrencies in the UAE, most investors have decided to stay on the sidelines despite the curiosity these crypto assets have attracted, say market observers.

"Clearly, given the volatility, the investor base that it has garnered has been for the most part speculative," says

Malalla.

"We need to look at the technology behind Bitcoin and other cryptocurrencies. The technology that cryptocurrencies

use will be what plays a big part in rent and purchase payments. Currently, it's still in a very embryonic state, so we need to wait for the technology to evolve and more players to come to the market before it starts to play a larger part

in the property market," suggests Allsopp.


Back to Index





OMNIYAT'S NEW LUXURY DUBAI CANAL

PROJECT Friday, March 09, 2017

The first photos have been released showing how Omniyat's new development on the banks of Dubai Canal, to be

managed by the Dorchester Collection brand, will look.

The development includes a 5-star hotel and luxury residences, managed by Dorchester Collection, at Marasi, and is

part of a long-term agreement that will be rolled out in the coming years.

Aside from The Dorchester, London, Dorchester Collection also owns and operates world-renowned properties including

45 Park Lane in London, Coworth Park in Ascot, Le Meurice and Hôtel Plaza Athénée in Paris, Hotel Principe di Savoia in

Milan, Hotel Eden in Rome and The Beverly Hills Hotel and Hotel Bel-Air in Los Angeles.

The move is the latest in a number of high-end lifestyle partnerships that Omniyat has secured in recent years,

following previous agreements with The Langham and ME by Melia.

Established in 2005, Omniyat has a development portfolio of over $6.2 billion. Last year, the developer sold the

penthouse at its One Palm development for AED 102 million, making it the most expensive apartment in Dubai.

In addition to the new development, Omniyat and Dorchester Collection said they will also join forces on other projects in the region.


Back to Index





DUBAI PROPERTY PORTAL EXPANDS OPS TO

END USERS, MORTGAGED BUYERS Thursday, March 08, 2017

Dubai-based home buying service, SellAnyHome.com, has announced that, due to the overwhelming demand, it is

expanding its services to end user and mortgaged buyers 12 month ahead of schedule.

End users (those who intend on living in the property) and mortgaged buyers can register for free and then get instant

access to weekly flash sales complete with the 100 point check and comprehensive 360 degree pictures.

Buyers can opt to book a viewing or make a one click offer on the property of their choice, with the highest offer being

presented to the seller.

The weekly flash sales display properties priced to sell for a one week period only.

Saygin Yalcin, the founder and CEO of SellAnyCar.com and a prominent regional tech entrepreneur, announced the

launch of SellAnyHome.com in the Gulf region last year.

He said SellAnyHome.com aims to enable home owners to sell their property online in 30 minutes.

Omar Chihane CEO and co-founder of SellAnyHome.com said: “Extending our platform to include end users and

mortgaged buyers was actually always part of the plan, we simply decided to speed up this phase due to the overwhelmingly positive response we’ve received from this segment of buyers.

"Furthermore, we are focusing on the buyer experience from the onset by displaying great properties at great deals... SellAnyHome.com aims to become a one stop shop for home buyers supporting them throughout this journey from

viewing to closing the deal."

SellAnyHome.com will also allow buyers to book viewings of the properties displayed and extending the offer time to 3 days, he added.

“We are of course well aware that end users’ needs and buying behaviours are of course different from that of investors and so allowing end users the opportunity to visit the premises and most importantly allowing them enough

time to make a purchase decision was certainly important to us,” he said.


Back to Index





VAT LAUNCH HAS 'NO IMPACT' ON DUBAI

OFFICE MARKET SO FAR Thursday, March 08, 2017

Office rents in Dubai have continued to moderate during early 2018 as occupiers "rightsize" to suit their business

needs, against the backdrop of rising inflation and global economic factors, according to a new report.

Cluttons said that while the level of office market activity remains mixed throughout Dubai, its Spring Office Market

Bulletin indicates growing maturing and a healthy outlook for the sector.

It also noted that the introduction of VAT has not had any real impact on landlord behaviour so far since its launch in

the UAE on January 1.

The report showed that headline rents in the city’s top tier free zones have remained largely steady, bar one or two low quality buildings.

Away from prime Grade A buildings, which remain well let and in high demand, landlords are demonstrating greater flexibility and are largely receptive to rent reductions at renewal, Cluttons said.

Faisal Durrani, head of research at Cluttons said: “Global economic factors continue to have a direct impact on the real

estate market in the UAE. In the office market, upper limit headline rents have been affected, with occupiers either sitting tight, regearing leases, or continuing to consolidate operations."

Just five of 24 submarkets registered minor downward adjustments during the final quarter of last year, with the weakness persisting into 2018, he said, adding: "It is our view that this will continue for the remainder of the year with

rents set to fall AED5-20 per sq ft. However, core free zones are likely to buck this trend, with rents holding steady.”

Cluttons’ latest report also indicated that while overall conditions may seem flat, landlords are not yet at the stage where large discounts and extensive incentives need to be offered.

Paula Walshe, director of International Corporate Client Services at Cluttons added: “So far, the introduction of VAT has not had any real impact on landlord behaviour but we are monitoring this closely. While absorbing the 5 percent VAT

costs does not appear to have been considered yet, this may well emerge as an option should rental weakness linger into 2019.”


Back to Index





DUBAI'S DANUBE LAUNCHES NEW $81M

JEWELZ PROJECT Thursday, March 08, 2017

Dubai-based developer Danube Properties has announced the launch of its 10th project called Jewelz.

The AED300 million ($81 million) project has been announced following the sales success of its previous developments, the developer said in a statement.

Jewelz was unveiled by Rizwan Sajan, founder and chairman of the Danube Group and Atif Rahman, director and partner, Danube Properties.

The new project offers 463 residential units, ranging from studio, and- and two-bedroom apartments, and features

amenities including a health club, swimming pool, steam and sauna room, jogging track, and sports courts.

The project dedicates 50 percent space to open areas with an emphasis on greenery and landscapes, the statement

added.

Sajan said: “I am extremely proud to announce our 10th project Jewelz next to Miracle garden at Arjan. Dubai is a

lucrative and transparent market when it comes to investment. You will get the highest return on investment, high

capital appreciation, and ease in doing business and strong economic growth.

"The current property prices are in favour of those who want to buy their own home. It is cheaper for a person to buy a

property in Dubai than to rent one, especially if they are planning to settle in the country long term."

Rahman added that Jewelz takes Danube's portfolio to AED3.14 billion.


Back to Index





UAE BANK DONATES $136K TO HELP

RESOLVE DUBAI RENTAL DISPUTES Monday, March 05, 2017

The Rental Disputes Centre (RDC), the judicial arm of Dubai Land Department, has received a donation of AED500,000

($136,000) from Emirates Islamic Bank to support insolvent tenants in rental claims disputes.

The donation will be used to pay the dues in difficult cases, said Judge Abdulqader Mousa, director of the RDC, in

comments published by state news agency WAM.

He said: "We would like to thank Emirates Islamic Bank for this noble humanitarian initiative, which will help us to

achieve more stable relations between landlords and tenants, thereby sustaining Dubai’s attractive real estate

environment."

Mousa added: "The RDC has assigned a specialised committee to study the families’ situations and identify their

circumstances. In 2017, we received many similar donations that are in line with the spirit of the ‘Year of Zayed’ in the UAE."

Awatif Al Harmoodi, general manager of operational quality & processes at Emirates Islamic Bank, said: "We at

Emirates Islamic Bank are fully committed to supporting the ‘Year of Zayed 2018’ initiative launched by President His Highness Sheikh Khalifa bin Zayed Al Nahyan.

"We focus on a range of programmes and events that are designed to provide support and assistance to eligible groups in the UAE community in line with our corporate social responsibility, charity and humanitarian policy."


Back to Index





BINGHATTI DEVELOPERS SELLS 60% OF

MILLENNIUM BINGHATTI RESIDENCES Sunday, March 04, 2017

UAE-based Binghatti Developers has sold 60% of units in its Millennium Binghatti Residences tower during its first sales

phase after its launch on March 3rd.

The AED400 million ($109m) project located on the Dubai Water Canal in Business Bay is set to be completed by Q4

2019.

The project, which consists of 230 units including studios and one and two bedroom apartments, offers hotel-inspired

facilities such as concierge, daycare, catering, laundry, housekeeping and maintenance services.

The tower’ design is based on vernacular, local architecture as opposed to modern, city-style schemes that are popular in Dubai.

The 29-storey tower sits directly on the waterfront with direct views of the Dubai skyline and Burj Khalifa.

Its Business Bay location is seen as one of main factors of its early sale success, which ensures that residents are just

minutes away from major destinations such as Downtown Dubai, Dubai Mall, DIFC and Kite Beach.


Back to Index





NEW AREAS GET POPULAR AMONG ABU

DHABI RESIDENTS Sunday, March 04, 2017

Madinat Zayed was the most popular area among Abu Dhabi residents in 2017, according to ServiceMarket, a

marketplace for moving and house services. The area received 14.46 per cent of all move-in requests.

Other areas that people moved into were Reem Island, Khalifa City, Al Khalidiyah and the outskirts of Abu Dhabi. Areas

like Al Reef, Mussafah and Al Raha Beach were other popular areas that witnessed most move-in requests.

While established and densely-populated areas such as Madinat Zayed and Al Khalidiyah are still very popular, newly

developed contenders such as Reem Island and Khalifa City are also gaining in popularity. A lot of people are also

moving to the outskirts of Abu Dhabi, which are communities beyond Al Reef on the road to Dubai. These areas have become popular because they offer lower rents.

Madinat Zayed, Khalifa City, Reem Island and Al Khalidiyah also experienced the most moving-out activity. This could be because people tend to move a lot between these popular areas since they have many residential buildings. In

addition, those who are looking for lower rents but don't want to move their family away from the area where they're

already settled often choose to move to another home in the same area. Around a third of Abu Dhabi residents just move from one residential building to another in the same area.

Reasons behind moving

Madinat Zayed holds the top position and Al Khalidiyah is also in the top 5 list because both these areas are established

and offer many amenities like an abundance of residential buildings, shops, schools and recreational facilities. They are

the business hubs of Abu Dhabi.

However, since newly developed areas such as Reem Island, Khalifa City and outskirts of Abu Dhabi have more houses

with gardens and compounds with large pools, they are now very close to the top position. Another reason could be that people are moving to these suburbs of Abu Dhabi to avoid traffic and congestion. People who work in Dubai prefer

these areas as they can save an hour on their daily commute.


Back to Index





SHARJAH DEVELOPER AWARDS CONTRACT

TO LATE ZAHA HADID’S FIRM Wednesday, March 07, 2017

The architectural practice set up by the late Zaha Hadid has been chosen to design the ‘Central Hub’ — the

entertainment and cultural zone — at the Dh24-billion Aljada development in Sharjah. The is the firm’s first project in the UAE since Hadid’s death in 2016.

The Pritzker Prize-winning architect had been associated with Abu Dhabi’s Shaikh Zayed Bridge and the uniquely shaped Opus from Omniyat.

The development value of the Central Hub is Dh1 billion, excluding the cost of land. For the Sharjah project, “we

conducted a global design competition (and) featuring a number of the largest global architectural practices”, said Shaikh Sultan Bin Ahmad Al Qasimi, chairman of Arada, the developer of Aljada.

Sustainable community

“But the entry from Zaha Hadid Architects was one that was closest to Arada’s core themes of sustainability, community

and technology.

“We believe that Aljada will be a world-class destination not just for Sharjah but for the whole of the UAE, and the winning design from Zaha Hadid Architects matches that aspiration.”

It was last year that Aljada was launched, with a land spread of 2.2 square kilometres in what is the last piece of undeveloped land in the heart of Sharjah City.

The developer has done a few rounds of sales launches on the residential side. But the Central Hub design contract is the first major announcement in regard to the other attractions within Aljada.

The first phase of Central Hub will create a new destination for Sharjah even before the first homeowners move into their houses by the end of 2019.” — Shaikh Sultan Bin Ahmad Al Qasimi | Chairman of Arada

The master plan for the first phase of Central Hub will be completed by the end of this month and break ground in May.

This would put it on track to complete the first phase by year-end. (The master plan for the entire Central Hub will be finished in September.)

Phase 2 will be completed in the fourth quarter of 2019, while the third and final phase of the Central Hub will be

delivered by the end of 2020.

The Central Hub occupies 1.9 million square feet, or just under 10 per cent of the overall Aljada. Arada will operate and

manage the Central Hub once complete.

“In total, there will be 10 major attractions (within the Central Hub), including the largest children’s adventure and

discovery centre in the Northern Emirates, as well as indoor and outdoor sporting venues,” said Shaikh Sultan.

Details

“The first phase will include Arada’s experiential sales centre, as well as an adventure activity zone for families, a food

truck destination and outdoor events spaces. We will be revealing more details of the features within the Central Hub master plan in the final quarter of this year.

“In terms of the Central Hub’s integration with the rest of the project, Arada’s plan is to make the whole of Aljada a highly interconnected destination, allowing residents from every part of the city easy access not only to the Hub but

other parts too.

"We are doing this not only by stressing the importance of walkability in our master plan, but also creating an internal transport system for residents and visitors featuring electrically powered people movers.





“The first phase of Central Hub will create a new destination for Sharjah even before the first homeowners move into

their houses by the end of 2019.

"This is part of Arada’s plan to build a full community — not just a physical development. It is therefore important to us

that aspects of the Central Hub are available for residents to enjoy from the very first day they move into Aljada.”

Source: Gulf News

Back to Index





SHARJAH’S WATERFRONT MARVEL Wednesday, March 07, 2017

Sharjah Waterfront City, the largest such mixed-use waterfront development with a marina in the northern emirates,

was first announced at Cityscape Dubai in late 2015. Within two years the project has been fine-tuned as per the

market conditions, and has also achieved key milestones, creating significant buyer interest in the region.

The project comprises eight man-made islands that can host 60,000 people. It will have a marina with 800 berths, 95

high-rise towers, 1,500 villas and town houses, a central business district to host blue-chip companies, a large regional shopping mall, a shopping arcade and 14 luxury hotels with ballrooms and convention centres.

Sharjah Waterfront City

Residents and visitors will have access to the beach and a Crystal Lagoon Water Theme Park

Designed to add to Sharjah’s rising profile as a family-friendly destination, the project also features the Crystal Lagoon

Water Theme Park, which will have 36 unique rides. The theme park is designed by Jack Rouse Associates, a destination experience specialist based in the US.

Sustainability

Located between Umm Al Quwain and Hamriyah Free Zone, Sharjah Waterfront City also features high on connectivity

and sustainability and is designed to be a pollution-free city, where the landscaped features will comprise 60 per cent of

the development. Solar and renewable energy will power street lighting and many other facilities within the city.

Sharjah Waterfront City fact sheet

Type: mixed-used waterfront community

Components: residential, commercial, retail, hospitality, tourism and entertainment

Value: More than Dh25 billion

Number of islands: 8

Development area: 60 million sq ft

Waterfront/beach: 36km

Residences: 1,500 villas and town houses

Towers: 95 mid-rise and high-rise towers

Hotels: 14 hotels and serviced apartments

Population: 60,000

Marina: 800 berths for boats and luxury yachts

Internal mobility: Paved roads and a tram network

Power supply: Up to 700 MW

Landscape ratio: 60% landscape, 40% civil structures

Phase I: 499 plots on Sun Island and Thuraya Island and a Central Business District with 24 Towers

Phase I value: Dh9.5 billion

Phase I area: 4.5 million sq ft

Phase I built-up area: 16.6 million sq ft

The eight islands are positioned between natural channels spread over 36km of coastal land along the north-east coast

of Sharjah. Clean seawater is renewed in its channels every 12 hours, in line with the natural tide of the Arabian Gulf.





The channels and foundations have been covered in geotextiles, which will help absorb pollutants from the water, as

well as shore up and strengthen the piling and foundations around the project and prevent soil erosion. Internally, the islands will be connected by a proposed tram service that can eventually connect to a federal rail system. The

developers also propose to have a water taxi service with the cooperation of Dubai’s Roads and Transport Authority, which can take residents and visitors to Dubai Marina in 20 minutes.

The Waterfront City is adjacent to the federal highway network — Ittihad Road, Mohammad Bin Zayed Road and

Emirates Road — and will be linked to those highways through two road bridges.

Power utilities

Shaikh Abdullah Al Shakrah, chairman of Sharjah Oasis Real Estate Co., the developer behind the iconic project, last month handed over two power transmission and distribution plants to Sharjah Electricity and Water Authority (Sewa) to

power the project. Al Shakrah said the power utilities were built with the company’s own resources to ensure uninterrupted supply of up to 700 megawatts for the waterfront community. Costing Dh250 million, the utilities were

the first such large power distribution and transmission plants built by a developer and handed over to the state-owned

public utility.

“This demonstrates our strong commitment to the economy of the UAE and Sharjah,” said Shaikh Al Shakrah. “Our

strategy is to develop sustainable development projects in Sharjah.”

Sharjah Oasis Real Estate also unveiled various construction activities for phase one of the project at a cost of Dh3

billion. The first phase is expected to be completed in 2019. Along with the infrastructure work, 321 villas are also

under construction on the Sun Island featuring three- to six-bedroom units. The residences are expected to cost between Dh2.5 million and Dh8 million.

Around 20 per cent of the project has been accomplished, even before its commercial launch. These include the construction of the canals, physical infrastructure, power infrastructure, internal roadways, bridges, breakwater barriers

for water circulation, installation of geotextiles for environmental protection, detailed design and piling and shoring works of the villas.

Source: Gulf News

Back to Index





REVITALISING SHARJAH’S REAL ESTATE

MARKET IS A MATTER OF CULTURAL

PRESERVATION Tuesday, December 05, 2017

In a series of firsts for Sharjah’s real estate development sector, three projects with a cumulative value of Dh2.7 billion were unveiled in January by His Highness Dr Shaikh Sultan Bin Mohammad Al Qasimi, Supreme Council Member and

Ruler of Sharjah. Palace Al Khan, Maryam Island and Kalba Waterfront will be developed by Eagle Hills Sharjah, a joint

partnership between Sharjah Investment and Development Authority (Shurooq) and Eagle Hills, an Abu Dhabi-based real estate developer.

Dr Shaikh Sultan unveiled the projects in an event attended by several dignitaries, including Shaikha Bodour Bint Sultan Al Qasimi, chairperson of Shurooq, and Mohamed Alabbar, chairman of Eagle Hills and vice-chairman of Eagle Hills

Sharjah Development.

Palace-Al-Khan Sharjah

Palace Al Khan is the first luxury waterfront resort in Sharjah.The three projects, which will all start construction in the

first quarter, are unique in their positioning. Palace Al Khan is the first luxury waterfront resort in Sharjah and it accentuates the history of the emirate. It will be home to a Dh120-million five-star seaside hotel. The project is

expected to be completed by the second quarter of 2020.

Maryam Island is a mixed-use development situated between Al Khan Lagoon and Al Mamzar in Downtown Sharjah. It will be home to buildings not higher than eight floors and will see 1,890 luxury apartments and villas. Spanning 460,000

sq m, the project is set for completion by the end of next year.

The Dh160-million Kalba Waterfront is a luxury retail project with the mall constructed within the Kalba Eco-tourism

project, a haven for Sharjah’s wildlife and nature. It is expected to be delivered by the third quarter of next year.

Kalba-Waterfront Sharjah

Kalba Waterfront is a luxury retail project with a mall constructed within the Kalba Eco-tourism project. Marwan Bin

Jassim Al Sarkal, CEO Shurooq, talks to PW about the projects and Sharjah’s development goals.

What do you hope the partnership between Shurooq and Eagle Hills will bring to Sharjah?

Assurance, quality and time. Since the beginning, Eagle Hills has been developing projects on an international scene and they are known for delivering quality projects within the given time frame. For Shurooq, we felt it was a great fit to

work with developers who are not only committed to the project but know what they are doing.

How does the development of these three properties fit in with Sharjah’s overall city planning and the vision of the Ruler?

The identity of Sharjah is very important when it comes to developing these properties. It’s all about preservation of culture and the historic architecture and, therefore, we aim to building something that impacts future generations

positively. His Highness the Ruler of Sharjah has envisioned the sustainable development of Sharjah for the long haul. Finding a developer who can align development concepts to this vision has been crucial. Marwan Bin Jassim Al

SarkalThe identity of Sharjah is very important when it comes to developing these properties. It’s all about preservation

of culture and the historic architecture.

Moreover, if you look at the location of each of the projects, we have tried to create the components that are missing

from each area where the projects will be developed. So in Al Kalba Waterfront we are creating the missing retail component.





In Palace Al Khan, it’s about preserving the historic area. The project will have a magnificent view and we could have

planned to put in five hotels, not just one hotel. We could have built towers, but instead we are making this a luxury destination where only 87 rooms are created. So 50 years down the line, the generations will still appreciate the

historical content of the area.

With Maryam Island that’s situated between two lagoons, we could have easily focussed on the highest return on

investment by building G+15 buildings instead of the G+8 buildings that we are going to develop. Instead, we are

creating low-density areas, public green spaces, mixed retail spaces that can be enjoyed while keeping the project financially feasible.

What will the launch of these premium properties bring to the real estate market in Sharjah?

Since Shurooq was created in 2009, we have been attracting investors by showing them that there’s a market in

Sharjah. It’s not only limited to free zone areas, but also the opening of hotels, hospitals, retail spaces and more.

Maryam Island Sharjah

Three health care providers have shown interest in the health care components of Maryam Island

When you can demonstrate that a successful developer such as Eagle Hills, which has been involved in developing new city hubs around the world, has now come to Sharjah to create such premium properties, then this opens opportunities.

At the launch of the projects, three health care providers were present as they are interested in the health care components that will be a part of Maryam Island.

There’s huge potential in investing in the emirate due to its continued economic diversification. We have created a body

called Investment in Sharjah, an investment promotion agency that supports and guides foreign investors in whatever questions they may have. This is so they can make the most of the investment opportunities across all sectors in

Sharjah, such as tourism, health care, logistics and the environment.

Source: Gulf News

Back to Index





SHARJAH’S BIG SPLASH Wednesday, March 07, 2017

Sharjah is starting to take big strides towards its vision of elevating the lifestyle choices in the emirate. One of its most

ambitious projects so far is Sharjah Waterfront City, which comprises eight man-made islands literally carved out of the

desert. Sultan Al Shakrah, CEO of Sharjah Oasis Real Estate Company, the developer of the waterfront project, exclusively speaks to PW about Sharjah’s real estate industry and how the mega development stands out from the rest.

What is special about Sharjah Waterfront City?

Very few projects in the UAE or in the region can offer direct sea views, and also a huge marina, and this is what

makes Sharjah Waterfront City so special. At Sharjah Oasis Real Estate Company, we are always interested in the right project for the right location.

Sharjah Waterfront City

The six-phase mega project is planned to be completed in eight to 10 years

The Sharjah real estate market is a very stable one, which has been developing over the last three decades, and the

private sector has the support of the government of Sharjah.

Sharjah has earned a big name for its family-oriented lifestyle and tourism projects. From our side, promoting Sharjah

is synonymous with promoting our project. As much as we are involved in this area, we have to give full support and

cooperate with the government’s vision.

The main demand for Sharjah Waterfront City comes from Emirati and Saudi buyers and then from Indian, Pakistani

and other parts of the Gulf in equal proportions.

When will the development be completed?

The completion of the whole project will take eight to 10 years in six phases, but will also depend on market conditions.

The second phase of construction will begin by the end of the year. At Sharjah Oasis, our main consideration is that the full infrastructure must be completed in 2021. On our part we will take care of the full infrastructure and some areas of

the project. We cannot implement such a project completely on our own. No developer can undertake the completion of a full city.

The urban and infrastructure design is 100 per cent complete. We are focused on the infrastructure, as without it there is no project. We are the first developers who are investing directly from our pocket for the main infrastructure before

we launched our sales, instead of waiting for the customers. This is unlike others who have come to sell, gather the

money form customers before launching construction.

How do you deal with connectivity issues?

There is a great demand for people to live in Sharjah, which has creates traffic congestion at peak times. We are trying to solve this traffic issue for people who are going to live in Sharjah Waterfront City. The Marine Taxi project in

cooperation with Dubai’s Roads and Transport Authority will link our marina to Dubai Marina in 25 minutes from where

one can continue onwards to their destination using buses or by connecting to the Dubai Metro.

The Marine Taxi project in cooperation with Dubai’s Roads and Transport Authority will link our marina to Dubai Marina

in 25 minutes from where one can continue onwards to their destination using buses or by connecting to the Dubai Metro. As part of the infrastructure upgrade in the UAE, there will be huge developments on Emirates Road. We are

developing two bridges that will connect directly to those highways. In five minutes, you would be able to connect to Mohammad Bin Zayed Road and in eight minutes to Emirates Road.

There is a tram project that will be implemented at Sharjah Waterfront City. And if there is a federal rail network to

Hamriya, as planned by the authorities, the tram can be connected to the rail system.

Source: Gulf News

Back to Index





SHARJAH PLUGS THE GAPS IN REAL ESTATE Wednesday, March 07, 2017

With almost a quarter of its budget this year allocated for infrastructure development, the government of Sharjah is

laying the groundwork for a real estate blitz that could significantly transform the emirate’s property development

scene. Sharjah has approved a budget of Dh22 billion for the fiscal year with 24 per cent dedicated to the development of infrastructure, a move that supports ongoing programmes by the Sharjah Investment and Development Authority

(Shurooq), which has itself already launched a number of real estate projects.

In January three projects with a cumulative value of Dh2.7 billion were unveiled by His Highness Dr Shaikh Sultan Bin

Mohammad Al Qasimi, Supreme Council Member and Ruler of Sharjah. According to Marwan Bin Jassim Al Sarkal, CEO of Shurooq, one of the key objectives now is to be able to fill the gaps and make Sharjah a more competitive real

estate market.

“If you look at the location of each of the projects, we have tried to create the components that are missing from each area where the projects will be in development,” says Al Sarkal.

The congestion in older communities has also prompted efforts to build new residential destinations, particularly in line with population growth.

According to a JLL Mena report, congestion in the western parts of Sharjah, where many of the older residential areas

are located, has contributed to the rise of new residential properties in Al Juraina, Al Gharayen and Al Nouf.

Apartment rentals

Apartment rents in Sharjah declined between 6 per cent and 10 per cent in the third quarter last year, although the average price of apartments sold in Sharjah remained constant, according to JLL’s The UAE real estate market: 2017 —

a year in review. The rent for one- and three-bedroom units dropped by 6 per cent, while two-bedroom units fell by 10

per cent. By the fourth quarter, average apartment rents declined further by 13.6 per cent according to Cluttons’ Property Market Outlook report.

Abu Shagara was the weakest area for landlords with rents retreating 15.1 per cent, followed Al Qassimiya with a 10.6 per cent decline.

However, villa rents took a different turn, rising 1.7 per cent during the fourth quarter last year.

“Over the last two years, Sharjah’s villa market has grown in both profile and popularity as the emirate’s real estate

market repositions itself with new and affordable options that are helping to retain its appeal and attractiveness among

those households that have been priced out of Dubai, or are seeking a more family-oriented lifestyle,” Cluttons states in its report, noting that new mixed-use developments that feature shopping malls and other amenities are among the big

winners in the current market. “Communities such as Al Zahia have, as a result, been a runaway success and with most major new shopping mall developments in Sharjah anchoring these new lifestyle destinations, the future of community

living in Sharjah appears relatively buoyant, especially when compared to many other property segments in the UAE.”

While Sharjah continues to introduce new real estate projects and concepts, Dubai is also seeing strong growth in new deliveries, which analysts say has had a negative impact on rent recovery. According to Asteco’s Northern Emirates Real

Estate Report — Q4 2017, Sharjah widely remains an affordable residential destination for families, but the availability of new and affordable options in Dubai has encouraged several commuting residents to move back from Sharjah to

Dubai where they work.

Shurooq’s game plan, though, is to become less dependent on the market conditions in Dubai by launching projects

that cater to the diverse lifestyle requirements of residents, while elevating the emirate’s economic performance. “We

have been attracting investors by showing them that there’s a market in Sharjah,” Al Sarkal tells PW. “It’s not only limited to free zone areas, but also the opening of hotels, hospitals, retail spaces and more.”

The value-added tax (VAT) is another factor affecting residents and landlords this year. Although VAT does not cover residential rents and sales of new residential property, household budgets are affected overall as prices of goods

increase.





However, landlords have so far been reluctant to adjust advertised rents downwards due to concerns about alienating

existing tenants, according to Cluttons.

Leasehold

Property ownership laws changed in 2014 and allowed non-Arab expatriates to purchase property in select residential leasehold developments. This has encouraged a rise in master-planned residential developments and thus opening the

door to more investors.

The Sharjah Real Estate Registration Department (SRERD) has reported that the value of real estate transactions grew by 37 per cent in the third quarter last year compared with the same period in 2016, which was attributed to an

increase in mixed-use, master-planned communities. In the first half last year, the number of residential sales transactions grew by 23 per cent, while real estate sales transactions rose by 46 per cent.

Among the developments where non-Arab expatriates are allowed to purchase property on a 100-year leasehold basis are Tilal City, Al Zahia and Nasma Residences.

Source: Gulf News

Back to Index





OVER 468,000 EUROPEANS VISIT SHARJAH

IN 2017 Thursday, March 08, 2017

Over 468,000 European tourists visited Sharjah in 2017, representing a 36 per cent increase from the 343,987

European visitors in 2016, according to the Sharjah Commerce and Tourism Development Authority.

The Authority discussed the figures during its participation at the International Tourism-Bourse Berlin 2018 (ITB Berlin),

the latest edition of the travel trade show.

Officials from the authority are at the event to showcase Sharjah’s tourism projects, agendas, and services in a bid to

strengthen relations with German and European institutions and attract more visitors.

Source: Gulf News

Back to Index





REVEALED: THE WINNING DESIGN FOR

SHARJAH'S $6.8BN MEGA PROJECT Wednesday, March 07, 2017

ARADA has announced that one of the world’s most prominent architecture practices, Zaha Hadid Architects, will design

the Central Hub, the centrepiece of Aljada, the developer’s new Sharjah mega project.

Designed with environmental considerations integrated throughout the masterplan to minimise the consumption of

resources, the winning entry conceptualises the first moment a water droplet strikes the earth’s surface, captured in an array of elliptical buildings designed to channel prevailing winds into civic spaces and courtyards to facilitate cooling

during the summer months.

The central observation tower is surrounded by public squares that incorporate water features irrigated by recovered and recycled water, while tensile canopies will sustain a microclimate at ground level for verdant gardens featuring

species native to the region.

The first phase of the Central Hub, which will include the opening of ARADA’s sales centre, will be launched in the last

quarter of 2018, a statement said.

Sheikh Sultan bin Ahmed Al Qasimi, chairman of ARADA, said: “Zaha Hadid Architects’ integrated design approach matched our vision for Aljada’s Central Hub as an interconnected destination. This approach is synonymous with

ARADA’s mission to develop rewarding and engaging communities, building the Sharjah of tomorrow.”

The heart of the AED24 billion ($6.8 billion) Aljada mixed-use development, he said the 1.9 million square foot Central

Hub will be a major destination for tourists and residents.

The Zaha Hadid Architects design for the Central Hub will incorporate the use of treated wastewater to allow the vegetation in the precinct to flourish, while the architecture will incorporate active and passive measures to lower the

demand for indoor cooling, he added.

Aside from the ARADA sales centre, the first phase of the Central Hub will also include an adventure activity zone, a

food truck destination showcasing home-grown brands, and outdoor events spaces.

Aljada was unveiled by Sheikh Dr Sultan bin Muhammad Al Qasimi, Ruler of Sharjah, last September.

In January, ARADA secured a AED1 billion financing facility from two UAE banks to help fund the development of

Aljada, and also announced that CH2M had been awarded the infrastructure design contract for the project.

Delivered in phases starting in 2019, construction on Aljada will begin in the first quarter of 2018 and the entire project

is expected to be completed by 2025.


Back to Index





PAKISTAN-UAE PROPERTY EVENT TO OPEN

IN ISLAMABAD Wednesday, March 07, 2017

A three-day Pakistan-UAE Property Show opens in Islamabad from April 26 to 28 at the Pak-China Friendship Centre.

The event is structured to provide information and identify investment opportunities between Pakistan and the UAE. This is the first venture between the Subhanis Group and BMS International Commercial Investment.

Of late there has been a marked spike in investments from Pakistan flowing into the UAE freehold sector. Some investor-developers from Pakistan too have turned active in the market.

Source: Gulf News

Back to Index





SOUTH AFRICA BRACES FOR ECONOMIC

FALLOUT OF LAND NATIONALISATION MOVE Sunday, March 04, 2017

Land expropriation without compensation in South Africa moved a step closer as the country's parliament adopted a

motion last week to make changes to existing legislation that would put the contentious plan into effect.

The ruling African National Congress (ANC), together with opposition party the Economic Freedom Fighters (who

sponsored the bill), voted to change the country's constitution to reduce property rights. The move has sparked fierce debate and could widened the racial divide in the top Industrialised African economy.

EFF leader Julius Malema told reporters shortly after the vote that the push is for all the land, including farms and

urban properties. "Every land in South Africa should be expropriated without compensation," he said. "The state should be the custodian of the land."

That has put in doubt the fate of outstanding private property market mortgages, which local banking groups have estimated to be valued at 160 billion rand ($13.5bn). About 145bn rand in loans is owed by the farming sector, of

which white South Africans account for 72 per cent, government audits show.

South African has struggled with muted growth over the past five years, brought about in part by uncertainty over key economic policies. The World Bank projects the country's GDP to grow 1.1 per cent this year from near zero in 2017.

Unemployment is now north of 26 per cent, according to government statistics, adding pressure to the ruling party that must face elections in 2019. For the banking sector that underpins the economy, full nationalisation could prove to be a

massive hit, analysts said.

Although details of the nationalisation plan are thin, the EFF's Mr Malema has touted a lease-rental model that would see existing homeowners become state tenants. This system is already in place in a number of African countries

including Mozambique, which only allows a 99-year lease on farmland, instead of outright private ownership.

"No one is going to lose his or her house, no one is going to lose his or her flat, no one is going to lose his or her

factory or industry. All we are saying is they will not have the ownership of the land," Mr Malema said.

Last week's vote comes as South Africa's new president Cyril Ramaphosa has barely settled into the office. He is is

widely seen as business friendly and a free marketer, so the motion caught many by surprise. However his priority,

perhaps, is to lead the ANC - already wounded by years of corruption scandals under his predecessor Jacob Zuma - into next year's polls, according to analysts.

While the EFF gained only 6 per cent in the last elections, its vocal populism has eroded support for the ANC, particularly in urban areas. The joint motion on land may be an attempt to regain some of the lost ground among the

vote bank blunt EFF's criticism of ANC, party sources said. Still, the door to full nationalisation of all property is now

open, which has made many in the country of 55 million nervous. A growing black middle class that has embraced the property market in urban areas especially will particularly be affected.

"Why must government own land on behalf of [South African] blacks?" said Sihle Ngobese, a political activist with the official opposition Democratic Alliance, a party that supports free markets. "The EFF and ANC want all land to be owned

by government. So, they want [South African] blacks to be permanent renters of their own land."

Tribal leaders in the country have also expressed alarm at the idea. Goodwill Zwelithini, king of the Zulus (the country's

largest ethnic group) said he is prepared to 'fight' attempts to seize the tribe's land. The king oversees nearly 3 million

hectares of property in a tribal trust that the government wants to parcel off to individual tenant farmers who now live there with the monarch's permission.

"Land cannot be removed from the traditional leadership," King Zwelithini said. "In fact‚ the land is like the soul of the body of traditional leadership. We will never allow [it]‚ not for one day."





For now, nothing much will change, as property laws remain in place. Last week's motion requires a parliamentary

committee to investigate the ramifications of a constitutional change. This will take at least six months, before the committee reports its findings to the parliament. Further reviews are likely, which could push the matter well beyond

national elections, due to be held in the first quarter of 2019.

Bond and equity markets have also shown little reaction so far. South Africa's rand is still trading below the key level of

12 to the dollar that it held prior to the motion.

As yet, the ANC's view on what comes next should the constitution be changed is vague.

Enoch Godongwana, the ANC head of economic transformation, told the Eastern Province daily Herald that few details

had been hammered out by the party so far.

“Anyone who says they fully understand what this whole process fully means is lying," he said. “I myself don’t fully

understand it, which is why there’s this consultative process under way.”


Back to Index





GETTING BULLISH ON SINGAPORE REALTY Sunday, March 04, 2017

If there is one global hub where property prices will rise in 2018, it is Singapore. All the metrics I track to guesstimate a

bullish property cycle "inflection point" are now in place. Property sales have surged 45 per cent since December 2016.

The Lion City's biggest developers have begun to bid aggressively to expand their land banks. Local end-users, not offshore hot money, has driven sales volumes higher. Wealthy Indian, Chinese and Southeast Asian buyers have begun

to accumulate homes in the Core Central region. Singapore bank credit growth is robust and the Straits Times index rose up 20 per cent in 2017. Unsold homes inventories have fallen to 16-year lows at a mere 29,000 points. The

presales pipeline is white-hot.

In Singapore, property developers do not exploit their clients and are content with 10 per cent profit margins, not the

50-60 per cent margins developers in the GCC routinely extract via offplan pieces of paper. This is one reason I expect

the property bear market in the GCC to dip while the prices of homes, land, office and industrial property in Singapore moves sharply higher in 2018. Retail? No way, la! Amazon kills even in the Strait of Malacca!

There is no doubt in my mind that a supply squeeze, cheap financing and stellar economic growth make Grade A office buildings (ownable via listed Reits on the SGX) makes strategic sense at this point in the property and credit cycle.

The cap rates in the private market have compressed on an epic scale and are nowhere near reflected in the office

Reits trading at 80 per cent of NAV, meaning I can invest in Grade A Singapore office buildings at a higher yield and below replacement cost in the stock market. My obvious twin crown jewels in the Singapore office Reit market are

Capital Commercial Trust and Keppel, since both benefit from access to razor-thin bank finance spreads, a credible acquisition pipeline, the wildly bullish outlook for the limited commercial government land sales and rising rents,

institutional investor flows and valuation rerating potential. To paraphrase the Singapore Airlines tagline, from my

youth, Singapore Reits, what a great way to fly!

Singapore grants high income/executive expats permanent residence and a path to citizenship. Uncle Sam gave me a

Green Card but also the IRS but Uncle Lee requires me to send my boy to the Singapore Army. So I follow the old axiom. East is east and west is west, but Dubai is best! Yet these features of the Singapore job market means long

term demand for property is not dependent on speculators but correlated to employment growth, the rise of new sunrise industries, jabs, wages and income growth. All the macro/micro-market indicators here flash buy signal,

including positive leverage in the cost of home finance.

Singapore's "nanny state" DNA means government policy is mission critical to grasp the opportunities and risks in the property market. So the relaxation of property measures in early 2017 led to the surge in sales volumes. I doubt the

Singapore government will increase land tender in 2018 to dampen price rises.

Risks to the Singapore property market in 2018? Indian buyers rose 88 per cent in 2016. However, Modi's crackdown

on "black money" means less Indian capital flight abroad - no Singapore black money yatra for oligarchs of South

Mumbai and Chennai! Federal Reserve interest rates could become more aggressive and the Sing dollar could fall to 1.38. Historically, this is the level where I have turned cartwheels to own listed Singapore real estate proxies.

Remember the fabulous performance of Cambridge Industrial Reit. The mathematics of yield compression, NAV growth and currency gains were magical and investors who heeded my call made a 60 per cent total return as I did. Xi

Jinping's Politburo's stance on capital outflows are a wild card, as are stamp duty rises in Vancouver and Sydney, a de facto margin call on Chinese hot money.

The Year of the Dog will not be pretty for Hong Kong. Four Fed rate hikes, a US-China trade war, President Xi's anti-

corruption crack down and stratospheric office property values make me bearish on the Hang Seng index. I can easily envisage a 2,000-point hit on the Hang Seng index to 28,000. The value sector in China is banking, energy and telecom

megacaps.


Back to Index





PAKISTAN CHASES MORE UAE REAL ESTATE

INVESTORS Tuesday, March 06, 2017

A three-day Pakistan-UAE Property Show will be held in Islamabad from April 26-28 to promote investment

opportunities in the real estate and construction industry of the country.

The show is structured to provide information and identify investment opportunities between Pakistan and the UAE, a

statement said.

The announcement comes as Pakistanis real estate investors spent AED5 billion ($1.36 billion) in the Dubai property

market last year, according to recent figures released by Dubai Land Department.

The show will be held under the patronage of Sheikh Mohammed Al Maktoum, member of the ruling family of Dubai, Sheikh Abdullah Al Sharqi, a Fujairah royal and Louai Mohamed Ali, Goodwill Ambassador of United Nations in the UAE.

The show is being organised by the Subhanis Group and BMS International Commercial Investment, the statement added.

Hamid Subhani, group chairman, Subhanis Group, said: "The PAK UAE Property show is an annual event bringing

together real estate developers, brokers government officials, foreign dignitaries and diplomats, policy makers, investors, institutions, buyers, decision makers, and other stakeholders, private investors on one platform with over 80

exhibitors participating."


Back to Index





HOME FLIPPING IN U.S. HITS 11-YEAR HIGH

IN 2017 Friday, March 09, 2017

According to ATTOM Data Solution's Q4 and Year-End 2017 U.S. Home Flipping Report, 207,088 U.S. single family

homes and condos were flipped in 2017, up 1 percent from the 204,167 home flips in 2016 to the highest level since 2006 -- an 11-year high.

The 207,088 homes flipped in 2017 represented 5.9 percent of all single family home and condo sales during the year, up from 5.7 percent of all sales in 2016 to the highest level since 2013.

A total of 138,410 entities (individuals and institutions) flipped homes in 2017, up 4 percent from the 133,407 entities

that flipped in 2016 to the highest level since 2007 -- a 10-year high.

"The surge in home flipping in the last three years is built on a more fundamentally sound foundation than the flipping

frenzy that we witnessed a little more than a decade ago," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Flippers are behaving more rationally, as evidenced by average gross flipping returns of 50 percent over the

last three years compared to average gross flipping returns of just 31 percent between 2004 and 2006 -- the last time

we saw more than 200,000 home flips in consecutive years. And while financing for flippers has become more readily available in recent years, 65 percent of flippers still used cash to buy homes flipped in 2017, nearly the reverse of 2004

to 2006, when 63 percent of flippers were leveraging financing to buy."

Home flip lending volume up 27 percent to 10-year high

The total dollar volume of financed home flip purchases was $16.1 billion for homes flipped in 2017, up 27 percent from

$12.7 billion in 2016 to the highest level since 2007 -- a 10-year high.

"We aren't surprised that the dollar volume and share of financed flips are hitting new highs," said Matt Humphrey, co-

founder and CEO of LendingHome, which saw a nearly 70 percent increase in its dollar volume of loans on home flips completed in 2017 compared to 2016, according to an ATTOM analysis of loan data. "Online lenders like us exist

because banks and large lenders don't play in this space, and they aren't using technology to be efficient, nimble and fast. Now that investors have digital-native lenders catering to them, financing becomes an attractive alternative to

cash. We predict this trend will continue because 2018 is already off to an incredible start for us."

Flipped homes originally purchased by the investor with financing represented 34.8 percent of homes flipped in 2017, up from 31.6 percent in 2016 to the highest level since 2008 -- a nine-year high.

"Institutional demand in this space has grown substantially over the last several years. Fix-and-flip has become an asset class of its own that is well-financed by banks and highly sought by institutional buyers," said Maksim Stavinksy,

co-founder and COO at Roc, a nationwide originator which saw close to double the dollar volume of loans on home flips

completed in 2017 compared to 2016, according to an ATTOM analysis of loan data.

Among 52 metropolitan statistical areas analyzed in the report with at least 1 million people, those with the highest

percentage of 2017 completed flips purchased with financing were Denver, Colorado (55.4 percent); Boston, Massachusetts (52.8 percent); Providence, Rhode Island (49.4 percent); San Diego, California (48.5 percent); and

Seattle, Washington (48.0 percent).

"Across Southern California, the flipping of investment properties continues to be a challenge, due to low available

housing inventory, which is in turn driving up pricing and downsizing profitability for investors," said Michael Mahon,

president at First Team Real Estate, covering Southern California. "To best position cash available for investment, we are experiencing more investors looking to utilize loan financing as leverage, as opposed to all-cash purchases, in an

effort to capture greater numbers of investment opportunities, as opposed to maximizing individual profitability on investment projects."





Share of flips sold to FHA buyers at a three-year low

Of the homes flipped in 2017, 17.6 percent were sold to FHA borrowers -- likely first-time homebuyers -- down from 19.4 percent in 2016 to a three-year low.

Among 52 metro areas analyzed in the report with at least 1 million people, those with the smallest share of completed flips sold to FHA buyers in 2017 Richmond, Virginia (3.7 percent); New York, New York (4.3 percent); Minneapolis-St.

Paul (4.9 percent); St. Louis, Missouri (6.4 percent); and San Diego, California (10.0 percent).

"We are seeing an entirely new category of sellers on Roofstock made up of investors choosing to buy/fix/lease/sell with a tenant in place versus buy/fix/flip vacant via the MLS," said Gary Beasley, CEO and co-founder at Roofstock, an

online marketplace for investment properties. "This allows home flippers to reduce their selling costs, earn income during their hold period rather than having carrying costs, and potentially turn their capital faster. The availability of

data on where single-family rentals are trading on a cap rate basis allows value-add investors to back into the prices they can pay based upon their targeted profit margins and estimates of renovation costs and market rents, allowing

them to take advantage of robust investor demand for cash-flowing properties."

Among the 52 metro areas analyzed in the report with at least 1 million people, those with the highest share of completed flips sold to all-cash buyers -- often other real estate investors -- in 2017 were Providence, Rhode Island

(43.1 percent); Birmingham, Alabama (42.8 percent); Oklahoma City, Oklahoma (41.0 percent); Orlando, Florida (40.4 percent); and San Antonio, Texas (38.0 percent).

Average home flipping returns pull back from all-time high

Completed home flips in 2017 yielded an average gross profit of $68,143 (difference between median purchase price and median flipped sale price), up 5 percent from an average gross flipping profit of $64,900 in 2016 to a new all-time

high for as far back as data is available (2000).

The average gross flipping profit of $68,143 in 2017 represented an average 49.8 percent return on investment

(percentage of original purchase price), down from an all-time high average gross flipping ROI of 51.9 percent in 2016 but still the second highest average gross flipping ROI of any year as far back as any data is available (2000).

"I think it is starting to feel a little like 2007 again, only with one major difference: the people buying investment

properties are not 'sub-primers', but investors with more sophisticated deal sourcing methods," said Brad McDaniel, co-founder and CEO with Likely.AI, a company that applies artificial intelligence and machine learning to predict which

homes are likely to be good deals for investors. "One of our clients, in the wholesale business, made a strategic move to become more data-driven in all aspects of their business. I believe this trend, the adoption of big data, and AI by

residential real estate investors, is in its infancy. It's been said that real estate is a laggard when it comes to technology

adoption; that is changing because of AI."

Among 174 metro areas with a population of at least 200,000 and at least 100 home flips in 2017, those with the

highest average gross flipping ROI were Scranton, Pennsylvania (168.2 percent); Pittsburgh, Pennsylvania (145.5 percent); Baton Rouge, Louisiana (122.9 percent); Philadelphia, Pennsylvania (115.7 percent); and Erie, Pennsylvania

(114.1 percent).

Along with Pittsburgh and Philadelphia, other major metro areas with at least 1 million people and gross flipping ROI of at least 80 percent were Cleveland (113.3 percent); Baltimore (97.7 percent); New Orleans (92.9 percent); Cincinnati

(85.0 percent); and Buffalo (82.2 percent).

Highest home flipping rates in Memphis, Las Vegas, Tampa, Birmingham, Phoenix

Among 52 metro areas analyzed in the report with at least 1 million people, those with the highest home flipping rate in 2017 were Memphis, Tennessee (12.8 percent); Las Vegas, Nevada (9.1 percent); Tampa-St. Petersburg, Florida (9.0

percent); Birmingham, Alabama (8.6 percent); and Phoenix, Arizona (8.5 percent).

Other major markets in the top 10 for highest 2017 home flipping rate were Baltimore, Maryland; Virginia Beach, Virginia; St. Louis, Missouri; Miami, Florida; and Orlando, Florida.

Among 5,998 zip codes with at least 10 home flips completed in 2017, the highest home flipping rate was in 38116 in Memphis where home flips represented 31.5 percent of all home sales for the year. Other zip codes in the top 20 for

highest 2017 home flipping rate included zip codes in Baton Rouge, Louisiana; Penitas, Texas; Los Angeles, California;





Opa Locka, Florida; Jamaica, New York; Washington, D.C; Philadelphia, Pennsylvania; Farmersville, California; Houston,

Texas; Miami, Florida; and Saint Louis, Missouri.

Biggest increase in home flipping rates in Buffalo, New York, Dallas, Louisville, Birmingham

Among metro areas with at least 1 million people, those with the biggest increase in home flipping rate in 2017 were Buffalo, New York (up 34 percent); New York-Northern New Jersey (up 29 percent); Dallas-Fort Worth (up 23 percent);

Louisville, Kentucky (up 22 percent); and Birmingham, Alabama (up 17 percent). Other major markets in the top 10 for

biggest increase in home flipping rate in 2017 were Grand Rapids, Michigan; Rochester, New York; Indianapolis, Indiana; Cleveland, Ohio; and Houston, Texas.

Counter to the national trend, the home flipping rate decreased in 2017 in 19 of the 52 metro areas analyzed in the report with at least 1 million people, including Los Angeles, California (down 2 percent); Miami, Florida (down 14

percent); Boston, Massachusetts (down 7 percent); San Francisco, California (down 3 percent); Riverside-San Bernardino, California (down 1 percent); and Seattle, Washington (down 2 percent).

"I believe the drop in Seattle home flipping can be attributed to the large number of buyers that home flippers are

competing against in the market," said Matthew Gardner, chief economist with Windermere Real Estate in Seattle. "As a result, they're being forced to pay more which cuts deeply into potential profits -- also down from last year. I anticipate

that supply limitations, in concert with rising home prices, will continue to put downward pressure on the number of flips in the Seattle market in 2018."

Average time to flip unchanged from 2016

Homes flipped in 2017 took an average of 182 days to complete the flip, tied with 2016 for the highest average days to flip since 2006 -- an 11-year high.

Among 174 metro areas with a population of at least 200,000 and at least 100 home flips in 2017, those with the longest average time to flip were Lansing, Michigan (226 days); Ogden, Utah (221 days); Albuquerque, New Mexico

(217 days); San Luis Obispo, California (216 days); Naples, Florida (215 days).

Source: World Property Journal

Back to Index





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.

NEWS BRIEF 10 - Asteco Property Management · arabtec unit wins dh424m contract for damac's akoya...

Documents

Transcript of NEWS BRIEF 10 - Asteco Property Management · arabtec unit wins dh424m contract for damac's akoya...