News Brief 22

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NEWS BRIEF 22

SUNDAY, 28 MAY 2017

RESEARCH DEPARTMENT

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

REAL ESTATE NEWS

UAE/ GCC NEW GCC BUILDING DEALS SET TO HIT $85.6BN IN 2017 ARABTEC RIGHTS-ISSUE INVESTORS LEFT WITH 33% LOSS IN ONE WEEK ENMAA SETS UP FUND FOR $1BN SAUDI MIXED-USE COMPLEX OMANI WAREHOUSES, INDUSTRIAL UNITS URGED TO INSTALL SOLAR PANEL UAE FUND PUMPS $16BN INTO ARAB INFRASTRUCTURE PROJECTS ODG LANDS MUSCAT AIRPORT DUTY FREE DESIGN WORK OMNIYAT, SWISS-BELHOTEL TO OPERATE TWO NEW HOTELS IN KUWAIT 5,800 NEW HOMES TO ENTER QATAR MARKET BY YEAR-END KUWAIT TO SPEND $309M ON ROAD DEVELOPMENT

DUBAI RAMADAN UNLIKELY TO DENT DEMAND FOR DUBAI REAL ESTATE DUBAI SECONDARY OFFICE RENTS '18 MONTHS AWAY FROM RECOVERY' NFT SUPPLIES POTAIN CRANES FOR BIG DUBAI PROJECT XANADU DELIVERS $204M DUBAI RESIDENTIAL PROJECTS ITHRA DUBAI MARKS COMPLETION OF WATERFRONT MARKET

ABU DHABI ALDAR HIRED TO BUILD NEW $272M ABU DHABI MEDIA FREE ZONE CONTRACT AWARDED FOR WORLD'S LARGEST SOLAR POWER PLANT IN ABU DHABI AL MAHA ARJAAN BY ROTANA COMPLETES $13.6M RENOVATION

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REAL ESTATE NEWS NORTHERN EMIRATES $106M RAK SHOPPING MALL EXTENSION TO OPEN SOON LEADING REAL ESTATE DEVELOPER CROWNGATE INTERNATIONAL BREAKS GROUND ON BEACH-FRONT HOTEL RESORT IN RAS AL KHAIMAH, UAE CROWNGATE BREAKS GROUND ON $50M RAK RESORT

INTERNATIONAL U.S. HOME SALES SLIDE IN APRIL FOREIGN BUYER RESIDENTIAL TRANSACTIONS IN U.S. REACHED $102.6 BILLION IN 2016 UK HOUSE HUNTERS UNDETERRED BY POLITICAL UNCERTAINTY ADD ANOTHER £3,600 TO ASKING PRICES TO HIT A RECORD HIGH IN MAY HONG KONG CURBS LENDING TO CHECK PROPERTY BUBBLE CHINA'S LOGISTICS HUBS TO BENEFIT FIRST FROM ASIA'S NEW BELT & ROAD INITIATIVE

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NEW GCC BUILDING DEALS SET TO HIT $85.6BN IN 2017 Friday, May 26, 2017

The overall value of new building contracts awarded in the GCC in 2017 is expected to hit $85.6bn. This is the conclusion of the GCC Building Construction Market Report, which was created by Ventures Onsite on behalf of The Big 5 Heavy. If accurate, the figure would represent an increase of approximately 7 percent, compared to the $79.5bn of new construction contracts awarded in the GCC in 2016. The UAE tops the regional ranking, with an estimated $40.5bn (AED148.8bn) of building contractor awards predicted during 2017. Qatar is in second place with $16.7bn (QR60.8bn), and Saudi Arabia is in third with $16bn (SR60bn). The UAE also topped the GCC league table in 2016, with $32.6bn worth of project awards – the highest figure since 2008. Approximately 45% of building projects in the GCC are in the pre-construction phase, while 32 percent are at the tendering stage, according to Ventures Onsite. The Big 5 Heavy will replace the Middle East Concrete (MEC) and PMV Live events, which were previously collocated with The Big 5 exhibition in Dubai. The inaugural The Big 5 Heavy will run from 26-28 March, 2018 at Dubai World Trade Centre (DWTC) in the UAE.

Source: Arabian Business Back to Index

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ARA BTEC RIGHTS-ISSUE INVESTORS LEFT WITH 33% LOSS IN ONE WEEK Monday, May 22, 2017

Investors who bought contracts that entitle them to participate in Dubai Construction Company Arabtec Holding’s rights issue were left with a 33 percent loss at the end of the security’s single week of trading. The contracts surged on their first day, the only session when no limits were placed on the price, carried on a wave of speculative buying, said Majd Dola, senior research analyst at Al Ramz Capital in Dubai. The securities rose as high as 21 fils (US 6 cents) on May 15, from an opening price of 1 fil, and settled at 9 fils. They ended at six fils on Sunday, their final session, having lost a third of their value from the close on the initial day of trade. Many investors bid for the contracts without necessarily understanding what they were buying, and were caught out when liquidity evaporated in the remaining sessions, Dola said. Holders will be able to subscribe for new shares at one dirham, plus the cost of the contract, while Arabtec stock traded on Dubai’s Financial Market closed at 79.2 fils on Sunday. “Naive investors fell into the speculation trap,” said Dola. “People followed the liquidity on day one of trading and then got stuck as liquidity disappeared. That’s why it makes no economic sense.” The construction company, whose shares have slumped 85 percent in the past three years, intends to use the proceeds of the issue to fund the completion of projects and to implement a turnaround business plan. At the end of March, Arabtec posted its first quarterly profit since September 2014. Arabtec’s largest shareholder, Aabar Investments, has committed to subscribing for its full entitlement under the rights offer, and for any unsold shares up to 1.5 billion dirhams. The new shares are expected to start trading on the bourse on June 8.

Source: Arabian Business Back to Index

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ENMAA SETS UP FUND FOR $1BN SAUDI MIXED-USE COMPLEX Friday, May 26, 2017

Saudi-based Al Enmaa Investment Company said it has set up a new real estate development fund to build a residential and commercial complex near the Al Haramain train station in the port city of Jeddah at an investment of SR4 billion ($1.06 billion). The Darb Al Haramain complex will come up on a 1.38 million sq m area on the intersection of King Abdullah Road and Al Haramain Train Station in the old airport area of Jeddah city, said the company in a statement. The work began on the project last December and the marketing and selling of units is likely to start early next year, it stated. The complex has a modern unique structure that was designed by architecture group Hossam Al Abdulkarim in alliance with global industry giants US-based Cal Thorpe, Kranekel, and Canadian company WPS. Al Enmaa has signed up Saqefat Al-Safa Real Estate Development and Management Company to undertake the implementation and marketing of the project, it stated. On the new project, CEO Saleh Al Hanaki, said: "The complex, regarded as the most important residential and commercial complex for Al Haramain Train Station visitors, is expected to be completed in 2018." "The complex design stands to be the first-of-its-kind when compared to other similar projects in Jeddah, as it is structured with seven floors (services + 5 identical residences + an appurtenance) with the minimum number of 60 floors for the residential buildings within the complex, and located directly on King Abdullah Road," revealed Al Hanaki. In addition, the main road named “Al-Hijaz Road” was constructed to divide the complex from the west to the east, with buildings along the sides ranging from 20 to 60 floors each, he stated. "The complex also includes a large central park and medium-size gardens that obtain all the sports and entertainment activities, as well as services amenities for the residences of the complex," he added. The supervision and implementation of the project has been assigned to The Arab Center for Engineering Consultancy, a specialist in the field of engineering consultancy in Saudi Arabia for nearly 30 years with several major projects to its credit across the kingdom. Darb Al Haramian complex will be a major facility catering to the Al Haramian station visitors. It will have access to high-level road networks as well as Jeddah metro stations, allowing major commercial and touristic interchange in the area. According to Al Hanaki, the Sulaymaniyah main station in Jeddah is the most important railway station of the five connecting Al Haramain train station, as it links the departure and arrival of a huge number of users, which calls for an urgent demand of houses, hotels and various commercial projects. Darb Al Haramian complex will be a major facility catering to the Al Haramian station visitors. It will have access to high-level road networks as well as Jeddah metro stations, allowing major commercial and touristic interchange in the area.

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According to Al Hanaki, the Sulaymaniyah main station in Jeddah is the most important railway station of the five connecting Al Haramain train station, as it links the departure and arrival of a huge number of users, which calls for an urgent demand of houses, hotels and various commercial projects. The residents of Darb Al-Haramain will able to travel in these high-speed trains completing the Al Haramain- Makkah journey within a record 21 minutes, and to Madinah in 90 minutes. "This means they will enjoy the possibility of visiting the Holy Mosques on daily basis and at ease," remarked Al Hanaki. He pointed out that owing to the surge in visitor numbers, there will be a need of 17,000 hotel rooms during the first five years of the train’s launch and its commercial services or activities. "A total of 1.5 million visitors and pilgrims are expected to travel through Darb Al Haramain residential, accommodation, or commercial projects, benefiting from all the surrounding facilities, especially Al Haramain Train Station, King Abdulaziz University, its hospital, and all the vast commercial centers that are surrounding the location," he added.

Source: TradeArabia News Service Back to Index

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OMANI WAREHOUSES, INDUSTRIAL UNITS URGED TO INSTALL SOLAR PANEL Friday, May 26, 2017

All warehouses and industrial units in Oman should install solar panels to run their operations, and achieve self- sufficiency in energy generation, said a senior Omani ministry official. All factories coming up in Samayil and Nizwa, along with the ministry’s expansions in Suhar, Raysut and in South Al Batinah logistics hub should have renewable energy panels atop their buildings, Dr Ali bin Masoud al Sunaidy, Minister of Commerce and Industry, was quoted as saying in an Oman Daily Observer report. Speaking on the sidelines of the launch of a renewable energy programme, ‘Sahim’, Dr Al Sunaidy said those warehouses that install panels can avail of loans for the purpose from Oman Development Bank (ODB) and other banks. He added that the nation has a renewable energy strategy that envisages SMEs producing solar energy and sharing it with the rest. Dr Al Sunaidy further noted that there is huge potential for SMEs in the country. They have capability and technology for generating own power. Companies, factories and warehouses will get the benefit of tapping into the cheapest cost at night, which will ultimately benefit their business.

Source: TradeArabia News Service Back to Index

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UAE FUND PUMPS $16BN INTO ARAB INFRASTRUCTURE PROJECTS Friday, May 26, 2017

UAE-based Abu Dhabi Fund for Development had invested a total of Dh80 billion ($22 billion) into key development projects, covering major sectors including infrastructure, education, health, housing, transport, irrigation, agriculture and renewable energy, across the globe till date. Of this, 76 per cent of funds were channelled to Arab countries by ADFD which financed 339 development projects valued at Dh58 billion ($16 billion), said the Emirati fund. Headlining a press conference at the ADFD headquarters to announce the annual results, Mohammed Saif Al Suwaidi, the director general, said the Emirati fund continued to deliver an outstanding performance in 2016 with the number of beneficiary countries reaching 83 last year. Furthermore, the fund managed 17 development projects valued at Dh5.6 billion across seven beneficiary countries, dispensed Dh3.9 billion in concessionary loans to support four projects and Dh1.7 billion in government grants to finance 13 projects. Al Suwaidi said: "The Fund carries out its sustainable development programmes that have supported tens of thousands of projects to date across the globe. Its efforts contribute to UAE’s leading position in development aid." A report by the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) named the UAE the top world aid donor in the field of official development assistance (ODA) for 2016. The country also attained the number one slot in 2013 and 2014. "In 2016, ADFD excelled in forging new strategic partnerships with international stakeholders, most notably the International Center for Biosaline Agriculture (ICBA) and the Lives and Livelihoods Fund (LLF). These synergies underpin the Fund’s efforts in administering long-term development programmes and projects," he stated. Having received a total of Dh13.2 billion across 87 projects, the transport sector got the lion's share of ADFD’s funding – 18 per cent – over the last 45 years. Furthermore, the Fund spent Dh9.7 billion on financing 91 projects in the health and social services sector, representing almost 13 per cent of the total expenditure. Approximately 10 per cent of the funds – Dh7.6 billion – went to 92 strategic projects within the water and electricity sector. The Fund expended nine per cent on the housing sector, having implemented 45 community housing projects worth an estimated Dh7.3 billion. Apart from the Arab world, ADFD also invested in Asian countries which received Dh4.6 billion (adout six per cent of the total funds) in development finance across 66 projects. African countries got Dh3.3 billion across 74 projects, making up four per cent of the funding, said the company statement. Furthermore, 14 per cent, approximately Dh10.7 million was utilised to fund 18 projects in other geographic locations particularly, Latin America and Europe, it added. Source: TradeArabia News Service

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ODG LANDS MUSCAT AIRPORT DUTY FREE DESIGN WORK Friday, May 26, 2017

ODG, a leading consultancy and design agency based in the UAE, said it has won a major contract to design and project manage the entire duty free at the New Muscat International Airport in Oman. The company (previously known as Open D Group, Retail Access and Sparkle), has been signed up for the project by Oman Sales and Services (OSS), a joint venture between national carrier Oman Air and Aer Rianta International Middle East. OSS successfully won the 10-year duty free management contract amongst seven other international duty free operators. The new Muscat International Airport, which is still under construction, is expected to handle over 12 million passengers each year in the first phase of construction. On project completion, this figure is set to reach 48 million. The first phase is set to span 580,000 sq m with 7,000 sq m of retail space comprising perfume and cosmetics, liquor and tobacco, confectionery, fashion and accessories departments as well as a market and several exclusive speciality stores. Philip Eckles, the global implementation director, Aer Rianta International, said the newly-rebranded Emirati group had supported OSS during the RFP (request for proposal) bid phase of the Muscat Duty Free tender by developing outstanding design. "The world-class duty free store concepts developed were instrumental in our winning bid. Since the contract award, ODG has worked diligently and professionally with our project team to turn those concepts in to reality," he stated. On the new design, Hugo Vanderschaegh, the general manager at ODG, said: "The concept takes its inspiration from the unique Omani landscape and culture. Passengers will also enjoy several interactive features and experiences that will enhance their journey in Muscat International Airport." "With the launch of our new Intelligence and Digital divisions, we look forward to continue delivering ‘inspired designs that work’ to travellers around the world," he added. A global retail consultancy agency headquartered in Dubai, ODG has offices in Hong Kong and Singapore and more than 60 associates. A multicultural and decentralised group, it delivers work in more than 25 countries through its network.

Source: TradeArabia News Service Back to Index

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OMNIYAT, SWISS-BELHOTEL TO OPERATE TWO NEW HOTELS IN KUWAIT Wednesday, May 24, 2017

Leading property developer Omniyat Real Estate has inked a management agreement with Swiss-Belhotel International to operate two new properties in Kuwait. Both Swiss-Belboutique Bneid Al Gar and Swiss-Belresidences Al Sharq are under development and are expected to open in 2018. Laurent A Voivenel, Swiss-Belhotel International’s senior vice president, operations and development for the Middle East, Africa and India, said: “We are very proud to debut the Swiss-Belboutique and Swiss-Belresidences brands in Kuwait that is one of the key growth markets for us in the GCC. The hospitality Industry in the country is witnessing a remarkable growth at the moment and we are truly grateful to Omniyat Real Estate for having given us this great opportunity.” The steady growth of tourism in Kuwait, with a vision to welcome 440,000 visitors annually by 2024 is fuelling demand for quality hotels. Dr Abdullah Abdulsamad Marafi, owner and general manager, Omniyat Real Estate, said: “We are very pleased to partner with a reputed operator like Swiss-Belhotel International who is well-placed to meet the needs of the domestic market in accordance with the best international standards. Both Swiss- Belboutique Bneid Al Gar and Swiss-Belresidences Al Sharq are being developed for discerning domestic and international travelers looking for world-class accommodation in Kuwait.” Gavin M Faull, chairman and president of Swiss-Belhotel International, said: “It is the perfect time for us to enter Kuwait when the country is evolving into a multi-faceted destination with the development of diverse attractions for both corporate and leisure visitors. This has significantly pushed the demand for quality hotels and represents a brilliant opportunity for Swiss-Belhotel International to grow our footprint in the country. We are confident both Swiss-Belboutique Bneid Al Gar and Swiss-Belresidences Al Sharq will add tremendous value to our growing presence in the region while further strengthening our international portfolio.” Swiss-Belboutique Bneid Al Gar will be a comfortable and stylish address for both business and leisure travellers offering a home-away-from-home experience. Featuring 58 rooms equipped with top-notch facilities, the hotel enjoys an exceptional location in Kuwait City with no other international hotel brand having a presence in the area. Included in its facilities will be a multiple choice of leisure and recreation facilities such two superb restaurants, lobby café, spa, health club and swimming pool. Swiss-Belresidences Al Sharq will serve as a great base for corporate travellers being strategically located in the business district near Souq Sharq. It will offer guests a choice of 68 one- and two-bedroom hotel apartments with fully-equipped kitchen facilities. The hotel will also feature an all-day-dining restaurant, a deli corner in the lobby, kids club and a swimming pool. Kuwait is pressing ahead with multiple plans to boost tourism that will see billions of dollars being invested in projects such as the expansion of Kuwait International Airport, reaching 25 million passenger capacity annually by 2025; and development of cultural attractions like Sheikh Saad Al-Abdullah Islamic Centre.

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According to figures from the World Travel and Tourism Council, travel and tourism investment in Kuwait is set to rise 1.5 per cent per annum over the next 10 years to KD135.6 million ($445.9) in 2027. Performance is forecast for strong recovery in 2017 with continued growth until 2026, reaching values of KD501.3 million ($1.6 billion). Corporate travellers accounted for 70 per cent of total visitor arrivals in Kuwait in 2016. However, Kuwait is actively working to diversify its guest segmentation in order to secure the projected levels of growth over the coming years. Leisure travel spending is expected to rise by 4.5 per cent per annum reaching KD1.939 billion ($6.3 billion) in 2026, following an annual growth rate of 8.7 per cent. Laurent said: “We expect to see a corresponding diversification in hotel stock as more leisure, health and wellness tourists discover the country’s unique offerings. With 14 trusted brands, we cater to every market segment and are eager to capitalise on Kuwait’s growth trajectory.”

Source: TradeArabia News Service Back to Index

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5,800 NEW HOMES TO ENTER QATAR MARKET BY YEAR-END Monday, May 23, 2017

An estimated 5,800 new homes are set to enter the Qatar real estate market by year end, assuming minimum construction delays, according to a report. These include apartments in five buildings at United Development Company's (UDC) flagship The Pearl project and 10 buildings in Lusail, stated ValuStrat, a leading consulting firm, in its review on Qatar's real estate market for Q1. By the end of 2016, the total housing stock (villas, residential houses and apartments) was approximately 281,000 units. Another 1,500 units, about 17 per cent of which are villas and 83 per cent apartments, were added to Qatari market during the first quarter this year. Of these, the majority of the new residential projects were concentrated in Lusail, The Pearl and Al Sadd, it stated. This year’s Cityscape exhibition unveiled major off-plan residential projects such as Al Swida Village in Al Thumama (77 apartment buildings), Lusail Azure (serviced apartments and villas), Telal 2 in Lusail (luxury apartments), Millennium Apartments in The Pearl, Jumanah Tower 2 in The Pearl and Ezdan Oasis in Wukair (8,679 housing units). All the projects mentioned are expected to be completed by 2020, it stated. On the residential prices, the ValuStrat report said compared to 2016, the median transacted price for residential houses fell by nearly 12 per cent year-on-year (YoY), although the volume of transactions increased by more than 50 per cent. This annual increase in transactions volume of residential units illustrates a positive response to falling prices, it stated. On the first quarter scenario, ValuStart said the median transacted price remained unchanged. However, the volume of transactions for residential houses decreased by 20 per cent quarter-on-quarter (QoQ). The quarterly fall in volume can be partially explained by recent rises in lending rates by Qatar Central Bank total 0.5 per cent in December 2016 and March 2017, it stated. The real estate consultancy said compared to last year, the median monthly asking rents have declined by approximately 15 per cent YoY and five per cent QoQ. For villas, the median asking rents plunged by 18 per cent YoY and eight per cent QoQ, while for apartments the asking rents were down 15 per cent YoY and five per cent QoQ. "Apartment asking rents were relatively stable in some areas like Al Sadd. As many landlords did not reduce rents, but offered incentives and promotions which translated into a fall in effective rents, stated ValuStrat in its report. "Moreover, in areas like Abu Hamour or Fereej Bin Mahmoud, rents were stable as the majority of these districts cater to the low-to middle-income segment," it added. Source: TradeArabia News Service

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KUWAIT TO SPEND $309M ON ROAD DEVELOPMENT Monday, May 22, 2017

The Kuwait government is set to spend around KD94 million ($309 million) for development of roads and other key infrastructure in South Surra neighbourhood of the capital city, said a report. The project, being implemented by the Ministry of Public Works, involves construction and maintenance of roads and overpasses in areas within the vicinity of Sheikh Jaber Hospital and parts of the Sixth Ring Road, reported the state news agency Kuna. Two contracts linked to the consultancy agreement and implementation of the project would be submitted to the Minister of Public Works Abdulrahman Al Mutawa, it added. Meanwhile, in another development, Al Mutawa has signed a consulting agreement for designing, construction, and maintenance of overhead intersections and U-turns on Al Nuwaisib road. The agreement includes rehabilitating the existing road, eliminating all 33 U-turns besides providing the suitable multi-level intersections all over the road and the needed intersections for entrances and exits of the new cities, according to Kuna. The agreement also includes developing 43-km-long roads, nine multi-storey intersections, an overhead U-turn bridge that connects Al Wafra Road to Al Nuwaisib Road (Intersection 5); in addition to four bridges for camel crossing, said the report. Nuwaisib road is extended from intersection 91 (Al-Dubaiya Bridge), to the exit of Al-Nuwaisib area that is close to the border of Saudi Arabia, it added.

Source: TradeArabia News Service Back to Index

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RAMADAN UNLIKELY TO DENT DEMAND FOR DUBAI REAL ESTATE Tuesday, May 23, 2017

Ramadan is not likely to lower the number of investor enquiries in Dubai’s real estate market, a Dubai-based property listing site has claimed. Sales activity has been picking up this year, with Dubai reporting a 45 percent surge in the value of transactions in the first quarter compared to the same period last year. “Agents seem optimistic that current prices will prove ‘too tempting’ to resist for the many investors currently sitting on cash and that momentum will be little affected by Ramadan,” said Lukman Hajje, Propertyfinder group chief commercial officer. He added that though many industries slow down during Ramadan as few conferences are held, entertainment takes an extended breather and daytime dining is largely off-limits, but the volume of real estate sales and rental enquiries barely change. According to the Islamic Crescents Observation Project, the first day of Ramadan will fall on Saturday (May 27), but this has not been confirmed by the UAE Ramadan Moon Sighting Committee. “Ramadan has fallen during the summer months over the past four years. Many naturally assume that this will be a quiet period, but online searches and enquiries indicate in fact the opposite. Due to the heat and the shortened working days, people spend more time at home, and have excess time to search online,” said Hajje. “Consumers are spending more and more of their free time browsing the web on their mobiles, tablets, laptops, desktops and even their smart TVs. Even when people are shopping at malls, socialising at friends’ houses or travelling, they remain connected.” January and February are peak months, with daily enquiries 11 to 23 percent above the average for the site, the company said, adding activity slows slightly from April to July – a period that includes Ramadan - though the month itself does little to alter property hunters behaviour. Sales enquiries rebound from August, a time when families are preparing for the start of the school year and many new residents arrive, Hajje said. The peaks and troughs of sales enquiries are gentle, however, indicating strong year-round demand for UAE property. ‘’While property inspections decrease due to the heat or due to people being out of the country during summer, those that do attend viewings, tend to be far more serious about their search. “Either they are hard negotiators looking for seasonal deals or they are customers who have a time limit on their move. The fact that summer coincides with the end of the school year, adds to this urgency as many rental contracts coincide with the school year, particularly villas and larger apartments that are often occupied by families,’’ Hajje said. Source: Arabian Business Back to Index

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DUBAI SECONDARY OFFICE RENTS '18 MONTHS AWAY FROM RECOVERY' Friday, May 26, 2017

Rents in Dubai’s secondary office locations are not likely to recover in the next 12 to 18 months, according to a report. Core Savills, in its latest report, said the secondary office market such as Business Bay, Barsha Heights (formerly Tecom), Jumeirah Lakes Towers and old Dubai are not moving forward towards a recovery in its real estate cycle due to strong headwinds faced from the large amount of existing stock, despite marginal improvements in demand. “We have analysed the evolution of Dubai’s office supply in our new report and arrived at the conclusion that the secondary market is unlikely to recover in the near future,” company chief executive officer David Godchaux said. Out of a total of 94 million square feet of office space in Dubai, 71 percent or 67 million square feet are estimated to be of Grade B and C quality. This submarket has seen a lot of new supply coming over the past five years with low levels of absorption, leading to high vacancy rates, above 30 percent on average. “As macro-economic indicators start improving and demand for Grade B and C office space starts increasing again, it will still take a lot of time for it to absorb the existing vacant stock,” he added. The consultancy estimates it will take over 1.5 years for half of the total vacant stock to be absorbed and remains cautious of any chance of an upward movement in secondary market rents in the next 12-18 months. “The good news is that the office market seems to be gradually self-adjusting with new prime stock expected to exceed new Grade B supply for the first time in the last 10 years. “Developers have recognised the need for quality office space where demand has consistently exceeded available supply in the past, while the recent surge of Grade B and C delivered stock is finally anticipated to slow down,” Godchaux said. Developers and free zone authorities, he said, have been responding to the growing demand for Grade A stock and this trend is expected to amplify through 2017-2019. According to the report, Grade A office area includes DAFZA, Dubai Design District (D3), Dubai International Financial Centre and Sheikh Zayed Road. Source: Arabian Business Back to Index

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NFT SUPPLIES POTAIN CRANES FOR BIG DUBAI PROJECT Wednesday, May 24, 2017

NFT, one of the world’s top suppliers of tower cranes, has supplied nine units of Potain MCT 205 for a major new tech-focused development in Dubai, UAE. Potain is a major brand from Manitowoc Company, a leading global manufacturer of cranes and lift solutions. A long-time business partner of Potain, NFT said eight of its advanced MCT 205 topless cranes along with an MC 205 B top-slewing model was delivered to China State Construction Engineering Corporation for the upcoming Silicon Park development. Spanning 150,000 sq m, Silicon Park will be a mixed-use development and also a free-trade zone with a focus on tech businesses. It is the brainchild of developer Dubai Silicon Oasis Authority, with China State Construction acting as main contractor on the job. The new facility will have some of the strongest green credentials in the region, in line with Dubai Municipality’s Green Building Regulations and international LEED (Leadership in Energy and Environmental Design) standards. Buildings will include apartments, offices, leisure facilities, a museum and a mall. According to NFT, the nine cranes will help construct some 23 low-rise buildings, and their duties include the handling of building materials and structural elements. Abdul Zidan, construction manager on the Silicon Park project for China State Construction, said the tight timescale for the project had dictated the cranes’ selection. "We are using the nine Potain cranes to cover 97,300 sq m of the project," remarked Zidan. The Potain MCT 205 topless cranes have a maximum capacity of 10 t and can lift 1.75 t at their maximum jib end of 65 m. Fittingly for the Silicon Park job, the cranes have a strong focus on fast erection. The complete upper works can be assembled in four lifts, while the full 65 m jib can be placed in a single lift. The MC 205 B is a regular-design, top-slewing crane and a proven performer on job sites across the Middle East, Asia, Africa and Latin America. It also has a 10 t maximum capacity, 60 m jib and 2.4 t jib end capacity. "All are good-quality, reliable machines, and NFT has provided us with good service and maintenance support. Having NFT with us has helped keep this project moving swiftly despite its congested schedule, and delays have been kept to a minimum," stated Zidan. Potain’s advanced topless designs, he stated, makes them ideal for busy job sites where multiple cranes need to work together. Because the cranes can overlap within shorter vertical spaces, working heights can be optimized, he said. Nabil Al Zahlawi, managing partner at NFT, said the MCT 205 units were a perfect choice for the Silicon Park project. “We selected the MCT 205 for China State Construction because it is a crane that’s strong, compact and fast to erect,” he observed.

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“We were also able to use our position as the world’s largest owner of Potain cranes to ensure that we met the tight delivery timescale. Our engineering team worked closely with the customer to get this project off the ground as quickly as possible, and we have been providing ongoing support to ensure work proceeds smoothly,” remarked Al Zahlawi. With over 1,500 tower cranes in its fleet, The Abu Dhabi-based NFT operates offices in Saudi Arabia, Lebanon, Qatar and Kuwait. This ongoing support includes managing all telescoping operations to allow the cranes to increase their working heights as needed. The working heights vary from 40 m to 55 m, and all nine cranes have been configured with jib lengths between 50 m and 60 m. Because there are so many cranes on the project, NFT has also specified Potain’s Top Tracing anti-collision technology. And further control is ensured thanks to Potain’s variable frequency technology for all hoisting, slewing and trolleying mechanisms. This optimizes the speed of the cranes’ movements and also regulates their power consumption for better efficiency. Christophe Simoncelli, the vice president, tower crane sales, Asia and the Middle East, at Manitowoc, said NFT played a crucial role in ensuring Potain cranes were selected for this landmark development. “It is very pleasing to see another high-profile development in the Middle East selecting Potain cranes, and it’s no surprise to see NFT is at the heart of it,” remarked Simoncelli. "Our designs aim to provide the lifting strength and speed that contractors need, but equally important is having strong local support. With NFT we have not only one of the best partners in the region, but one of the very best in the world," he added.

Source: TradeArabia News Service Back to Index

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XANADU DELIVERS $204M DUBAI RESIDENTIAL PROJECTS Wednesday, May 24, 2017

Xanadu Real Estate Development, a property developer based in Dubai, has announced the delivery of nearly 200 luxury villas and townhouses with a development value of over Dh750 million ($204 million). This is part of the Dh8 billion ($2.2 billion) worth of projects Xanadu helped deliver along with its partners over the last six years, said the company in a statement. These include 130 townhouses at Jumeirah Village Circle, worth Dh300 million ($82 million) and 68 luxury villas at Jumeirah Golf Estates, worth Dh450 million ($122 million). Xanadu, established in 2010, is the brainchild of an UAE national entrepreneur Adel Al Breiki, founder and Cenk Yabas. It has been partnering with property developers by undertaking the management of stalled projects and completing them by investing its own resources. Following the global financial crisis of 2008-09, many property developers found it difficult to carry on with projects due to tough market conditions marked by the absence of buyers and investors. While some developers had the ability to continue with projects, most were not lucky, resulting in a good number of projects being stalled. In 2010, Xanadu entered the real estate market with a vision to change it and help revive and manage stalled projects. It started with a cluster of townhouses and delivered it with the help of the previous developer, said a senior official. "Gradually, Xanadu picked up a number of challenging projects, infused capital and delivered them. This way, it helped revive, manage and delivere Dh8 billion worth of projects – that has a far-reaching impact in the emirate’s real estate sector and economy," remarked its founder Adel Al Breiki. "Dubai’s real estate market requires a quite different set of developers as it matures and demand is likely to be driven by real property buyers," he noted. "Therefore, committed customer-centric developers with a focus on quality and timely delivery will be crucial differentiator for successful developers," noted Al Breiki. As a developer, Xanadu has pioneered the concept of partnering with developers to turnaround challenging real estate projects and steered them towards successful completion and handover to customers, he said. Yabas said one of Xanadu's key strengths was its ability to manage projects efficiently - on time and within budget - while maintaining high quality standards, as per the latest trends and to suit the taste of the modern families. “While taking over the management of certain stalled projects, we changed the fittings and amenities to match the latest trends in design and products – that has helped us to offer a better proposition to the customers. This helps in value appreciation of properties and when new buyers inquire for homes – they look for contemporary designs,” noted Yabas. After partnering with developers, Xanadu is gradually developing its own project portfolio with new projects, he added. Source: TradeArabia News Service

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ITHRA DUBAI MARKS COMPLETION OF WATERFRONT MARKET Wednesday, May 24, 2017

Ithra Dubai, a leading real estate developer in Dubai, UAE, has announced the relocation of traders from Deira Fish Market to the brand-new 104,373-sq-m Waterfront Market on new Deira Corniche in Dubai. Waterfront Market carries on the legacy of the Deira Fish Market, which traces its history back to the very early days of Dubai, said the statement from Ithra Dubai. The company is wholly-owned by Investment Corporation of Dubai (ICD), the principal investment arm of the government. The move from Deira Fish Market to Waterfront Market will be a smooth transition for all traders with steps being put in place to ensure continuity, said the developer. The Waterfront market welcomed the traders to their new facility with a tour of the premises. The reaction was extremely positive with many impressed by the fresh clean new look, it stated. On the tour, traders were shown through all the areas and extra features introduced to make their life easier. The new market boasts several hitech facilities aimed at improving efficiency and creating less waste of produce with chiller and freezer facilities for vegetables, fish and meat. Fishermen can now unload direct from their dhows at the pontoons with the freshest fish being delivered direct from the sea. The new modernised facilities help small businesses improve their productivity enabling them to react better to increased footfall. Traders were eager to look around the highly-anticipated market with everyone commenting on the beautiful new façade and the authentic look and feel inside the market, said the statement from Ithra Dubai. Many were impressed with the new cleaning and cutting area as well as the large auction with its own ice plant. The fully air-conditioned, odour-controlled environment improves working conditions for the traders who spend all day at their stalls. Ithra Dubai said a new committee has been established to ensure that all the needs of the traders are taken care of. Abdulla Al Qubaisi, the head of the committee said it represents various government organisations: Dubai Municipality, Investment Corporation of Dubai, Dubai Police, and Fishermen Association who are working together to support the traders in their move to the new market. "The committee is working in conjunction with the General Directorate of Residency and Foreigners Affairs and the Ministry of Human Resources and Emiratisation amongst others to provide a smooth transition," he added. Source: TradeArabia News Service Back to Index

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ALDAR HIRED TO BUILD NEW $272M ABU DHABI MEDIA FREE ZONE Friday, May 26, 2017

Twofour54, Abu Dhabi's media and entertainment free zone, has appointed Aldar Properties to be the developer of its new, permanent home which will be situated on Yas Island. The first phase of the new free zone is valued at about AED1 billion ($272 million) and is set to grow, with a target of 10,000 working professionals from the media sector coming to Yas Island. The agreement is aligned with the Media Zone Authority - Abu Dhabi's mandate to develop a thriving, world-class media industry. Set to cover an initial gross floor area (GFA) of 95,000 square metres, twofour54's new home will feature state-of- the-art offices, TV studios and retail. Over time the GFA is expected to grow to over 300,000 square metres, a statement said. Today, twofour54 hosts over 450 media companies, including Sky News Arabia, Image Nation, Ubisoft, CNN, Fox, Flash Entertainment, M&C Saatchi, Flat6Labs and employs nearly 4,000 professionals. The move will increase twofour54's capacity by 25 per cent, which will help it expand, evolve, and continue attracting the world's most innovative and cutting-edge companies as partners, the statement added. Maryam Al Mheiri, CEO of Media Zone Authority and twofour54, said: "Over the past nine years, twofour54 has grown from strength to strength to become a leading regional hub for media and entertainment content. This success is due to the holistic ecosystem that we have carefully nurtured over the years, which has allowed our partners to thrive and prosper. "Aldar has a significant track record, making them the perfect partner for us as we prepare for the next chapter of our story – developing a physically connected community which supports our partners' growth and empowers them to innovate, collaborate and create." Mohamed Khalifa Al Mubarak, CEO of Aldar, added: "Having already evolved into a leading entertainment, leisure and residential destination, Yas Island is now set to become a hub for the media and entertainment industry. This is a key pillar of Aldar's strategy to create high quality, desirable and versatile destinations that enrich the lives of residents, tourists, and business travellers." Alongside its seven hotels on Yas Island, Aldar currently has more than 3,500 homes under development including West Yas, Mayan, Yas Acres and Ansam, with Ansam due for handover later this year. Source: Arabian Business Back to Index

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CONTRACT AWARDED FOR WORLD'S LARGEST SOLAR POWER PLANT IN ABU DHABI Thursday, May 25, 2017

Abu Dhabi has awarded the construction contract for the $3.2 billion (AED11.74bn) independent solar power plant in Suweihan. As the UAE focuses on harnessing renewable energy sources, the project is state utility provider Abu Dhabi Water and Electricity Authority’s (ADWEA) first entry into the sector. Abu Dhabi aims to generate 7 percent of its energy from renewables by 2020. Speaking to reporters on Wednesday, ADWEA director general Saif Saleh Al Sayari said they have awarded the contract to build and operate the 1,177 megawatt plant – the world’s largest independent solar plant - to a consortium of Japan’s Marubeni Corp and China’s JinkoSolar Holding. He said that the company has also raised $872m (AED3.2bn), comprising $650m (AED2.38bn) in debt and remaining $222m (AED815mn) raised in equity, to fund the project. “Construction of the solar plant will commence immediately with scheduled completion in second quarter of 2019,” he said. In March, Dubai opened the 200MW second phase of the $13.6bn (AED50bn) Mohammed bin Rashid Al Maktoum Solar Park. Under its “Clean Energy Strategy 2050”, the emirate plans to increase contribution of clean energy in the total energy output to seven percent by 2020, 25 percent by 2030, and 75 percent by 2050.

Source: Arabian Business Back to Index

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AL MAHA ARJAAN BY ROTANA COMPLETES $13.6M RENOVATION Wednesday, May 24, 2017

Al Maha Arjaan by Rotana, a leading hotel apartment in the capital city of the UAE, has announced the completion of its Dh50-million ($13.6 million) renovation project. The completed renovation showcases a modern four-star deluxe hotel offering an exciting remodelling of 288 guestrooms, the main lobby, recreation centre, meeting space and new restaurant concept. Nadim El Zyr, general manager, said: “With respect to its location, facilities and services, Al Maha Arjaan by Rotana has always been an iconic hotel in Abu Dhabi. The renovation project was an important step for our owners and for Rotana to provide new levels of accommodation and facilities to our loyal guests and visitors to the city.” The massive renovation project was concluded in three phases, starting with Café 302, which was launched in July 2016. Café 302 is a welcoming and trendy place to catch up with friends that serves buffet breakfast, à la carte lunch and dinner, takeaways from the deli counter and premium retail items from across the world. The second phase saw the completion of the 260-sq-m meeting space and the redevelopment of the leisure facilities. The improved state-of-the-art meeting facilities are complemented with elegant interiors. The progressive banquet spaces are ideal for small and medium sized events. Bodylines Fitness and Wellness Club, Al Maha Arjaan’s recreation facility has a renewed poolside with Italian marble flooring and new cabanas. Four new massage treatment rooms, an inviting relaxation area, and upgraded gym have been instilled as a part of this project. The final and most significant phase of the renovation was the rooms and suites, which boast a complete make- over. Each room includes new furniture, décor and carpet in contemporary colours and monochrome designs imported from Italy and the UK. Additionally, all rooms and suites have been technologically modernised with new 50-inch TVs, enhanced wi-fi coverage, and new kitchen appliances in the suites. The enriched ambiance creates the perfectly warm and comfortable environment for guests. “We understand our guest mix and took their needs into consideration early on in the planning. We will certainly try our utmost best to provide our valuable guests a pleasurable experience to remember at the all new Al Maha Arjaan by Rotana”, said El Zyr. Strategically situated at the intersection of Fatima Bint Mubarak and Hamdan Street, the hotel is nestled in a vibrant neighbourhood.

Source: TradeArabia News Service Back to Index

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$106M RAK SHOPPING MALL EXTENSION TO OPEN SOON Tuesday, May 23, 2017

Developer Al Hamra Group has announced that it is close to completion of the first phase of its AED390 million ($106 million) expansion of Manar Mall in Ras Al Khaimah. Once completed, the gross leasable area (GLA) will increase from just over 300,000 sq ft to nearly 600,000 sq ft over two levels. The company said in a statement that the extension will add another 80 shops to increase the total number of retail outlets to 164. The first phase of the expansion project is due to be handed over before the end of June, it added. The Manar Mall expansion is being undertaken by Al Hamra Real Estate Development, a fully owned subsidiary of Al Hamra Group. Al Hamra Group owns hospitality, retail and leisure assets such as the iconic Waldorf Astoria Ras Al Khaimah. “The expansion of Manar Mall is in line with the growing trend for community retail and leisure-based destinations that focus on the customer experience and convenience of location and access, as opposed to the mega-malls that have defined the UAE’s retail landscape over the last decade,” said Benoy Kurien, general manager, Al Hamra Real Estate Development. Opened in September 2000, Manar Mall is the most visited mall in the emirate, he added.

Source: Arabian Business Back to Index

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LEADING REAL ESTATE DEVELOPER CROWNGATE INTERNATIONAL BREAKS GROUND ON BEACH-FRONT HOTEL RESORT IN RAS AL KHAIMAH, UAE Tuesday, May 23, 2017

Crowngate International, a leading global real estate developer has officially broken ground on its AVANI Al Marjan Island Ras al Khaimah Resort on Al Marjan Island which will become the first resort in the Premium 4-Star luxury category on the island. The resort will address the rapidly increasing demand for hotels in the affordable luxury category in Ras Al Khaimah and will be managed by global hotel operator Minor hotels, under their luxury AVANI brand. The 225-key resort is situated on an impressive beach-front location on Al Marjan Island, with white sandy beaches as well as spectacular views of the Ras Al Khaimah coastline. The hotel will have premium facilities such as two pools, spa, gym, and kids’ club and will have an assumed development IRR of 19.8%+. RAK’s tourism industry statistics make for impressive reading, having witnessed tremendous growth of 8.7% between 2014 and 2017, surpassing that of the UAE, that has grown only 5.7% in the same period. RAK is emerging as a major hub for hotel investment with a projected pipeline of 10,200 keys, which puts it in a leading position in the UAE. Al Marjan Island itself accounts for an impressive 78% of upcoming hotel room supply in the Emirate, so it is the perfect location for Crowngate’s premium 4* resort. Joe McCormack, Founding Partner - Crowngate International, commented, “We could not have found a better home for this stunning resort, which is set to appeal to UAE residents as well as visitors from the GCC and overseas. As the key tourism destination in Ras Al Khaimah, Al Marjan Island offers the perfect location for our project.

Source: Arabian Business Back to Index

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CROWNGATE BREAKS GROUND ON $50M RAK RESORT Monday, May 22, 2017

Crowngate International, a global real estate developer, officially broke ground on its latest project in the UAE - the Avani Resort on Al Marjan Island in Ras Al Khaimah (RAK). The ground-breaking ceremony, held on location on May 21, was attended by Abdullah Rashed Al Abdooli, managing director of Al Marjan Island, and Haitham Mattar, CEO of Ras Al Khaimah Tourism Development Authority. Set to be fully operational in the third quarter of 2019, the Avani-managed resort will address the rapidly increasing demand for hotels in the affordable luxury category and is the first four-star project on aspiring tourist haven Al Marjan Island. During the ceremony, Crowngate International revealed additional details of the highly anticipated $50-million project, which marks the company’s first foray into the hospitality business. Partnering with some of the most renowned names in the region, the developer has appointed award-winning Naga Architects as designers. Dubai- based Vanguard Consultancy with a track record of premium hospitality developments in the Middle East and Africa has been appointed as project management consultants on the development. Recently, Crowngate International also announced that Minor Hotels will manage the property under its luxury Avani brand. The 225-key resort will rise from an impressive beach-front plot on View Island – seen as the heart of the man- made Al Marjan Island, an archipelago which extends 4.5 km into the sea and is a key area of growth. With white sandy beaches as well as spectacular views of the neighbouring islands and the Ras Al Khaimah coastline, the resort is set to appeal to local, regional and international leisure travellers. In addition to premium facilities such as two pools, spa, gym, and kids’ club, the resort will host upscale all-day dining and poolside restaurants, and offer meeting and event spaces with a 200-people capacity. The well-appointed, contemporary designed rooms will cater to all needs and range from standard and deluxe options to spacious suites. The tourism industry of the UAE’s northernmost emirate, Ras Al Khaimah witnessed tremendous growth of 8.7 per cent between 2014 and 2017, surpassing that of the UAE that has grown 5.7 per cent in the same period. Ras Al Khaimah is emerging as a major hub for hotel investment with a projected pipeline of 10,200 keys, which puts it in a leading position in the UAE. In 2016, the emirate recorded an 11 per cent increase in visitor arrivals compared to 2015, primarily attributable to an increase in beach resort guests, now contributing more than 80 per cent of visitors. While two thirds of the upcoming hotel inventory represent the five-star segment, Ras Al Khaimah has been seeing rapidly increasing demand from cost-conscious tourists looking for premium four-star options at competitive rates. The upcoming hotel resort by Crowngate International will efficiently address this market niche. Al Marjan Island accounts for an impressive 78 per cent of upcoming hotel room supply in the emirate. Only a short drive away from hectic city life, it is set to evolve as a favorite destination for ‘staycations’ and international visitors alike. The domestic UAE market continues to represent Ras Al Khaimah’s largest source market representing 40 per cent of visitor arrivals year-to-date, while international tourist arrivals grew by 11 per cent year on year. Visitors from the GCC markets also grew by 3.8 per cent in 2016, with tourists enjoying a wide range of connections from four airports in an 80-km radius.

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Commenting on the groundbreaking, Mattar said: “Ras Al Khaimah is celebrating an exciting period, with a number of hotels and resorts scheduled to join the emirate’s portfolio in the coming years. We are delighted to welcome AVANI Resort Al Marjan Island, further supporting our own vision to enhance and diversify the emirate’s hospitality offering as we target one million visitors by the end of 2018, and three million by 2025. Currently boasting just over 5,000 hotel rooms, the emirate is to add a further 4,445 new rooms in the coming years across various categories, with a number of opportunities still available for further investment in Ras Al Khaimah’s hospitality landscape.” Al Abdooli said: “I am delighted to celebrate the arrival of Avani Al Marjan Island Ras Al Khaimah Resort. The groundbreaking ceremony not only marks an important contribution to our vision of developing Al Marjan Island into a world-class vacation destination that caters to a diverse range of tastes and budgets, but also goes a long way in our journey of positioning Al Marjan Island as the most sought-after investment oasis in the region. With world-class facilities available, this new property will become a premier hospitality destination as it highlights our competencies in delivering customer-centric lifestyle experiences. We are confident that this new project will build on the momentum already established.” Joe McCormack, founding partner, Crowngate International, said: “We could not have found a better home for this stunning resort, which is set to appeal to UAE residents as well as visitors from the GCC and overseas. As the key tourism destination in Ras Al Khaimah, Al Marjan Island offers the perfect location for our project, which will firmly position us in an area expected to witness high demand and tremendous tourism growth in the years to come. Offering a budget-friendly option for discerning travelers, our four-star Avani Al Marjan Island Ras Al Khaimah Resort captures a previously untapped market, and we cannot wait to welcome the first guests in 2019."

Source: TradeArabia News Service Back to Index

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U.S. HOME SALES SLIDE IN APRIL Thursday, May 25, 2017

According to the National Association of Realtors, stubbornly low supply levels held down existing-home sales in April 2017 and also pushed the median number of days a home was on the market to a new low of 29 days. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, dipped 2.3 percent to a seasonally adjusted annual rate of 5.57 million in April from a downwardly revised 5.70 million in March. Despite last month's decline, sales are still 1.6 percent above a year ago and at the fourth highest pace over the past year. Lawrence Yun, NAR chief economist, says every major region except for the Midwest saw a retreat in existing sales in April. "Last month's dip in closings was somewhat expected given that there was such a strong sales increase in March at 4.2 percent, and new and existing inventory is not keeping up with the fast pace homes are coming off the market," he said. "Demand is easily outstripping supply in most of the country and it's stymieing many prospective buyers from finding a home to purchase." The median existing-home price for all housing types in April was $244,800, up 6.0 percent from April 2016 ($230,900). April's price increase marks the 62nd straight month of year-over-year gains. Total housing inventory at the end of April climbed 7.2 percent to 1.93 million existing homes available for sale, but is still 9.0 percent lower than a year ago (2.12 million) and has fallen year-over-year for 23 consecutive months. Unsold inventory is at a 4.2-month supply at the current sales pace, which is down from 4.6 months a year ago. "Realtors continue to voice the frustration their clients are experiencing because of the insufficient number of homes for sale," added Yun. "Homes in the lower- and mid-market price range are hard to find in most markets, and when one is listed for sale, interest is immediate and multiple offers are nudging the eventual sales prices higher." Properties typically stayed on the market for 29 days in April, which is down from 34 days in March and 39 days a year ago, and surpasses last May (32 days) as the shortest timeframe since NAR began tracking in May 2011. Short sales were on the market the longest at a median of 88 days in April, while foreclosures sold in 46 days and non-distressed homes took 28 days. Fifty-two percent of homes sold in April were on the market for less than a month (a new high). Inventory data from realtor.com reveals that the metropolitan statistical areas where listings stayed on the market the shortest amount of time in April were San Jose-Sunnyvale-Santa Clara, Calif., 23 days; San Francisco- Oakland-Hayward, Calif., 25 days; Denver-Aurora-Lakewood, Colo., 27 days; and Seattle-Tacoma-Bellevue, Wash., 28 days. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage declined for the first time in six months, dipping to 4.05 percent in April from 4.20 percent in March. The average commitment rate for all of 2016 was 3.65 percent. "Mortgage rates have been stuck in a holding pattern in recent months, which is a relief for spring homebuyers," said Yun. "With price growth showing little sign of slowing, prospective first-time buyers will be the most sensitive to any sudden uptick in rates in the months ahead." Matching the highest percentage since last September, first-time buyers were 34 percent of sales in April, which is up from 32 percent both in March and a year ago. NAR's 2016 Profile of Home Buyers and Sellers - released in late 2016 - revealed that the annual share of first-time buyers was 35 percent.

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Source: World Property Journal

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FOREIGN BUYER RESIDENTIAL TRANSACTIONS IN U.S. REACHED $102.6 BILLION IN 2016 Tuesday, May 23, 2017

According to speakers at the National Associations of Realtors recent international real estate forum in Washington D.C., housing markets across the U.S. are increasingly becoming international, and changing demographics brought forth by immigration and growing interest from foreigners are positioned to bolster home sales activity and prices. NAR's Danielle Hale, managing director of housing research, was joined by Alex Nowrasteh, immigration policy analyst at the Center for Global Liberty and Prosperity at the Cato Institute, to share insight on the current and future impact of foreign buyers and immigration on the U.S. housing market. U.S. Foriegn Buyer Market Highlights for 2016 Include:  Foreign buyers purchased $102.6 billion of residential property from April 2015-March 2016, a decrease from $103.9 billion in the previous 12-month period.  Foreign buyers purchased 214,885 residential properties, an approximately three percent increase from 208,947 in the previous 12-month period.  Foreign buyers typically purchase more expensive properties.  Although foreigners purchased property nationwide, five states accounted for 51 percent of total residential property purchases: Florida (22 percent), California (15 percent), Texas (10 percent), Arizona (four percent), and New York (four percent).  According to Nowrasteh, the rising U.S. population is being bolstered by a growing number of immigrant households, and their presence will continue to transform the housing market. Referring to data from the 2015 American Community Survey, Nowrasteh said of the roughly 321.4 million residents in the U.S., 278.1 million are born here (natives) and the remaining 43.3 million - made up of 20.7 million naturalized citizens and 22.6 million non-citizens - are foreign-born. "Immigration affects rents and home prices far more than it affects the labor market," said Nowrasteh. "An expected 1 percent increase in a city's population produces a 1 percent uptick in rents, while an unexpected increase results in a 3.75 percent rise." Nowrasteh, pointing to studies conducted on immigration and housing, explained that the effects of immigration on real estate are localized, with most of the impact felt where immigrants tend to reside: low-to-middle income counties. Each immigrant adds 11.6 cents to housing value within that county. In 2012, 40 million immigrants added roughly $3.7 trillion to U.S. housing wealth. Referencing the Legal Arizona Workers Act that went into effect on January 1, 2008, Nowrasteh said the decline in population resulting from the law likely exasperated the drop in home prices the state experienced during the

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downturn. Fewer households purchasing or renting property subsequently lead to higher vacancies and lower prices. "Immigration is the best way to increase population, housing supply and prices," he said.

Presenting some of the key findings from NAR's 2016 Profile of International Activity in U.S. Residential Real Estate released last July, Hale said foreigners increasingly view the U.S. as a great place to buy and invest in real estate. She noted the upward trend in sales activity from resident and non-resident foreign buyers in the past seven years, with total foreign buyer transactions increasing from $65.9 billion in 2010 to $102.6 billion in the latest survey. "A majority of foreign buyers in recent years are coming from China, which surpassed Canada as the top country by dollar volume of sales in 2013 and total sales 2015," said Hale. "Foreign buyers on average purchase more expensive homes than U.S. residents and are more likely to pay in cash." Perhaps foreshadowing where a bulk of future home purchases from immigrants will come from, Hale said that in NAR's latest survey roughly over half of all foreign buyers purchased property in Florida (22 percent), California (15 percent), Texas (10 percent), Arizona or New York (each at 4 percent). Latin Americans, Europeans and Canadians - who tend to buy for vacation purposes in warm climates - mostly sought properties in Florida and Arizona. Asian buyers were most attracted to California and New York, while Texas mostly saw sales activity from Latin American, Caribbean and Asian buyers.

Source: World Property Journal Back to Index

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UK HOUSE HUNTERS UNDETERRED BY POLITICAL UNCERTAINTY ADD ANOTHER £3,600 TO ASKING PRICES TO HIT A RECORD HIGH IN MAY Monday, May 22, 2017

The average asking price for a property in the UK reached another record high in May, defying speculation that Brexit and the General Election have put the brakes on the housing market. According to Rightmove, the average price tag on a home is now £317,281, a rise of 1.2 per cent or £3,626 on the previous peak of £313,655 in April. The property website said while pre-election periods often prompt a delay in buyer activity, the recent price growth the firm has seen and 'strong' year-to-date numbers of sales agreed highlight that many people are not put off. Rightmove director Miles Shipside said: 'Whilst all-time high asking prices or economic and political uncertainty could be deterrents to would-be home buyers, this month shows another strong set of figures. 'Demand is exceeding supply in many parts of the country and continues to push up the prices of newly-marketed homes. Spring is in the air and home movers are springing up the housing ladder.' Shipside added, 'What seems to be happening is that moving pressures are understandably taking priority over electioneering and Brexit worries. For many in this group, it seems that moving is definitely on their manifesto.' The strongest sector for price growth appears to be typical family homes. The asking price on a typical 'second stepper' home bought by families looking to improve from the first property they ever bought has increased by 5.4 per cent over the last year to reach £270,953. Homes targeted by people looking to take their second step on the property ladder are typically three-bedroom homes or properties with four bedrooms, which are not detached, according to Rightmove. Estate agents Jackson-Stops and Staff's chairman, Nick Leeming said, 'Our branches in the home counties across Surrey and Kent are seeing particularly strong interest from second steppers. 'These are typically young families who bought their first home in London around four to five years ago. Some will have taken advantage of the Help to Buy incentive, and nearly all would have benefited from a significant equity increase in their home.' Rightmove's figures demonstrate that asking prices have increased annually across the regions, with prices in Wales with the smallest annual increase, at a 0.7 per cent uplift taking the average price there to £182,769.

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London has the next smallest annual increase, with a 0.9 per cent upswing lifting the average asking price there to £649,864.

The West Midlands has seen the biggest annual jump in asking prices, with a 5.9 per cent increase taking the average asking price to £218,620. David Westgate, chief executive of Andrews Property Group, said: 'The fundamental elements of a strong market are still in existence to boost buyer activity.' Founder and CEO of eMoov.co.uk, Russell Quirk, commented: 'Interesting that Rightmove should have observed no wobble in the market where asking prices are concerned, despite the industry indices based on sale completions stating otherwise. He added, 'UK buyers are still sitting tight despite a marginal cool in market demand and are yet to reduce their price expectations. Overall, the predominant air of confidence seen in the market over the last year from UK home sellers seems to be persisting and this, in turn, should see price growth stabilise.'

Source: DailyMail UK Back to Index

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ASSET MANAGEMENT SALES LEASING  VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

HONG KONG CURBS LENDING TO CHECK PROPERTY BUBBLE Tuesday, May 23, 2017

The Hong Kong Monetary Authority (HKMA) has imposed new restrictions on bank lending to property developers, in order to restrain the city's real estate prices. Hong Kong's de facto central bank directed banks to restrict loans to property developers a maximum 40% of a site’s value, replacing the earlier limit of 50%. The cap will come into effect from June 1. The limit on construction cost financing will be cut to 80%, from the previous 100%. The overall lending cap will be 50% of the expected value of a completed property, down from 60%. Experts say that the HKMA's new curbs will affect smaller developers most, since they rely more heavily on financing for their projects. The HKMA said it was common for property developers to offer home buyers mortgage financing with high loan- to-value ratios, and that the trend is increasing. It added that some developers' lending arrangements are inconsistent with prudent practice. Home prices in Hong Kong have more than quadrupled since 2003, but the median monthly household income has risen only 61% during the same period. Middle class families have largely been priced out of the housing market. The government was widely criticized when the local media highlighted the growing trend of apartments being subdivided into many tiny spaces to accommodate those otherwise priced out of the city's spiralling housing market. The term ‘coffin homes’ has been coined for these spaces, which can be as tiny as 20 square feet. Nearly 200,000 Hong Kong residents now live in such coffin homes, according to government data, but experts say the real number is much higher.

Source: Global Property Guide Back to Index

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CHINA'S LOGISTICS HUBS TO BENEFIT FIRST FROM ASIA'S NEW BELT & ROAD INITIATIVE Wednesday, May 24, 2017

The recent Belt & Road (B&R) Forum for International Cooperation held in Beijing was attended by numerous international leaders and organizations and discussed topics including currency swaps, policy, infrastructure and trade, with the objective of strengthening connectivity between China and related countries. What does the B&R Initiative mean for the Chinese economy? Because the B&R is one of the world's biggest regional cooperative platforms, with China and the 64 encompassing countries accounting for 31% of global GDP; 33% of global trade volume; and 62% of the global population, CBRE Research says the B&R is set to have impact on a number of key areas that include: Rebalancing trade structure: Chinese exports to B&R countries grew by 0.7% y-o-y to $ 3.8 trillion in 2016 and now account for 27.8% of aggregate exports, an increase of 0.9pps. Improving trade and connectivity with B&R countries will help China to manage risks related to trade friction amid growing talk of deglobalisation. Harmonizing regional economic development: The B&R promotes rail cargo exports from western and inland provinces to Central Asian and Eurasian countries. This will trigger the relocation of manufacturing businesses from coastal areas to western China, bringing with it much needed infrastructure investment. Reducing overcapacity: New construction contracts with B&R countries totaled $126 billion in 2016, accounting for more than half of all overseas construction contracts signed that year. Poor infrastructure in many B&R countries is an ideal destination for Chinese steel, cement and construction overcapacity Internationalizing the RMB: To date China has signed currency swap contracts worth more than RMB 3 trillion. Trade, construction and investment in B&R countries are set to be new drivers of RMB internationalization. What does it mean for China's real estate sector? Sam Xie, Senior Director, Head of Research for CBRE China expects China's logistics sector, especially that in the mid-west region, to be the main short-term beneficiary of the B&R. New logistics hubs are already emerging as manufacturers relocate and infrastructure is upgraded. New policies introduced in Chengdu and Chongqing has stimulated the expansion of logistics facilities in bonded warehouse zones. These include Taobao's first bonded warehouse for cross-border e-commerce in Xiyong in Chongqing. In the medium and long term, the B&R is set to redress the economic imbalance between coastal and inland cities by attracting more capital, population and companies to new clusters in central and western areas. As demand grows, the value of commercial and residential property in these regions is likely to increase. Rising trade between China and B&R countries will drive stronger office demand from the e-commerce and financial sectors in the longer run.

On the outbound investment front, while Chinese investors are displaying growing demand for overseas property, CBRE notes that more than half of B&R countries are rated below investment grade, and therefore carry significant risks.

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Source: World Property Journal Back to Index

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With over 30 years of Middle East experience, VALUATION & ADVISORY Asteco’s Valuation & Advisory services team Our professional Advisory services are conducted by suitably qualified personnel all of whom have had brings together a group of the Gulf’s leading extensive Real Estate experience within the Middle Real Estate experts. East and internationally.

Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai, Our valuations are carried out in accordance with the Northern Emirates, Jordan and the Kingdom of Saudi Royal Institution of Chartered Surveyors (RICS) and Arabia not only provides a deep understanding of the local International Valuation Standards (IVS) and are markets but also enables us to undertake large undertaken by appropriately qualified Valuers with instructions where we can quickly apply resources to meet extensive local experience. Clients requirements. Our breadth of experience across all the main property The Professional Services Asteco conducts throughout sectors is underpinned by our Sales, Leasing and the region include: Investment teams transacting in the market and a wealth of research that supports our decision making. • Consultancy and Advisory services • Market research John Allen - BSc, MRICS • Valuation services Director - Valuation & Advisory +971 4 403 7777 [email protected] SALES Asteco has established a large regional property Sales Division with representatives based in UAE, Saudi Jenny Weidling - BA (Hons) Arabia and Jordan. Our Sales teams have extensive Manager – Research and Advisory experience in the negotiation and sale of a variety of +971 4 403 7789 assets. [email protected] LEASING Asteco has been instrumental in the leasing of many high-profile developments across the GCC.

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