NEWS BRIEF 05 SUNDAY 02 February 2014

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RESEARCH DEPARTMENT

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REAL ESTATE NEWS

DUBAI DUBAI’S INDUSTRIAL REALTY GIVES OFF HIGH YIELDS DUBAI'S REAL ESTATE GROWTH CYCLE HAS JUST BEGUN: DUBAI INVESTMENTS CEO DEVELOPER GOES AGAINST CONVENTION AT NEW PROJECT IT'S OFFICIAL: RENTS IN DUBAI'S SPRINGS COMMUNITY WENT UP BY 60% IN 2013 GLOBAL FIRMS MOVE DUBAI UP THEIR LOCATION AGENDA DESTINATION DUBAI CONFERENCE TO LAY EXPO 2020 INVESTMENT GROUNDWORK ROOM AT THE TOP FOR THIS DUBAI PENTHOUSE GLUT OF GOLF VILLAS THREATENS TO CROWD DUBAI MARKET SKAI HOLDINGS GETS AED737.6M FUNDS JLT UNITS NEAR DUBAI METRO 26% COSTLIER... WORTH IT? MAJID AL FUTTAIM TO INVEST AED3BN IN DUBAI OVER NEXT 5 YEARS DUBAI'S PRIME APARTMENT PRICES STILL FAR BELOW 2008 LEVELS, RISE IMMINENT DUBAI TRAM EFFECT: MARINA AND JBR PROPERTY PRICES SET TO RISE MAG TO DEVELOP DH800M HEALTHCARE CITY PROJECT LIMITLESS CHANGES CHIEF EXECUTIVE

ABU DHABI ABU DHABI AIMS FOR 3 MILLION TOURIST MARK THIS YEAR BRAKES ON ABU DHABI RENT HIKES: 22,000 NEW UNITS IN 2014 391 EMIRATI FAMILIES GRANTED NEW HOMES IN AL FALAH MOHAMMAD BIN RASHID CITY: DISTRICT ONE GETS DUBAI RULER’S APPROVAL DEPARTMENT OF FINANCE- ABU DHABI RENEWS MANAGEMENT CONTRACT OF ITS COMMERCIAL BUILDINGS WITH ADCPB

NORTHERN EMIRATES AJMAN SET FOR FIRST STARWOOD HOTEL

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DUBAI'S REAL ESTATE GROWTH CYCLE

HAS JUST BEGUN: DUBAI INVESTMENTS CEO

SUNDAY 02 FEBRUARY 2014 The growth cycle in Dubai's real estate market has just begun and prices are still far below the peak of 2007-2008, Dubai Investments Chief Executive Officer Khalid bin Kalban told Emirates 24|7. "Prices fell from the peak of 2007 and 2008 by a maximum of 60 per cent and a minimum 40 per cent; we even haven't reached that 40 per cent. Though we have seen increase of up to 20 per cent, we haven't really come back to the value of 2008. Generally, it's a five-year growth cycle... we are just at the start of the first year and so you still you have four years of growth," he states. "The world economy is just picking up and financial markets are growing... usually there is 12 to 24 months gap between the growth of stock markets and growth in real estate. And if you go back, you can see that the stock market crisis started in 2006, but the real estate market crashed only in 2008. "So we are confident that in the coming three to five years we wouldn't see anything affecting this growth... all indications tell us that growth is sustainable," Kalban asserts. US-based Goldman Sachs Group said earlier that fears of Dubai's real estate market experiencing a bubble are "exaggerated", stating property prices were still 36 per cent below their 2008 peak even after rising by about a-third from a low in the second quarter of 2011. Knight Frank, UK-based consultancy, expects property prices in Dubai to increase by 10 to 15 per cent this year with the emirate being placed third in the list of world's 20 most dynamic cities. Shortage of housing units According to Kalban, Dubai Investments Park (DIP), a 2,400-hectare mixed-use development, is already currently facing shortage of residential units. "There is a severe shortage of residential units in DIP and we are looking to build more to meet the demand. Even those who rented land from us earlier, and were planning to build commercial buildings, have now opted to convert them into residential." DIP is a wholly-owned subsidiary of Dubai Investments, the largest investment company listed on Dubai Financial Market. Even though DIP isn't located in any close proximity of the most happening districts of Dubai, property prices and rents almost match that of other master communities. "There is definitely a huge shortage here and hence prices and rents are going up," Kalban states. Average rents for two-bed apartments in DIP are Dh75,000 per annum, while three-bed are between Dh110,000 to Dh120,000 pa. New villa project In fact, increasing demand for villas has led to Dubai Investments to add a new phase to its popular Green Community.

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"We will soon be launching the phase three of Green Community. Construction will start as soon as we get approval from Dubai Municipality," he reveals.

Ritaj sold out

Asked about Ritaj, the flagship residential project of Dubai Investments Real Estate Company (DIREC), the real estate arm of Dubai Investments, Kalban says it is nearly sold and leased out. "Ritaj is nearly sold and leased out. The units that remain unoccupied are ones sold to investors." Though Dubai Investments held back some inventory in the project, which has been leased, it now plans to sell their retained stock in the market. "We had held back some inventory that we had opted to rent as we did believe its value would definitely go up. Prices are going up and hence we are activating the sale of these units based at the new prices." The current sale price ranges between Dh700 to Dh800 per square feet. It had fallen to below Dh500 per square feet between 2009 and 2010. "People who have built residential are also seeing not just their rentals going up, but also the value of their buildings. The area, overall, witnessed an increase of 15 to 25 per cent between June 2012 and end of 2013." Hotel with a spa Kalban rules out plans to build any mega shopping mall in Dubai Investments Park, saying, "All the residential communities have a small retail component... there are schools, shops, nurseries, hotels, etc and hence they are self sufficient." But, there is a one thing that DIP does need - a hotel with a spa. "We are exploring options to build or lease the land to some third party willing to build a hotel with spa, but if no one comes up in the next six to 12 months with any offers, DIREC will start work on the project," he reveals. Source: Emirates 24/7 Back to Index

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DUBAI’S INDUSTRIAL REALTY GIVES

OFF HIGH YIELDS

WEDNESDAY 29 JANUARY 2014

Industrial real estate in Dubai may not have the prestige associated with an upscale residential asset or a Grade A office unit, but investors are still getting handsome yields from such exposures.

A new Knight Frank report states that average rents for Class 1 industrial and logistics real estate in Dubai shot up 18 per cent year-on-year to Dh35 a square foot during the second-half of 2013. The popular areas for investors were Dubai Investments Park — where a major expansion is going on now — and the bellwether location for industrial realty, Jebel Ali Free Zone Authority. These two locations had rent gains of 30 per cent and 19 per cent, the Knight Frank report adds. “By comparison, rental values in Al Quoz saw a relatively moderate annual increase of 9 per cent to Dh38 per square foot,” the report says.

“Enquiries for 50,000-120,000 square foot distribution facilities rose in the second-half... however, due to high absorption rates in the preceding six months; there was little availability for units of this size.”

Food and beverage

In the first-half of 2013, interest was strongest from light industrial/manufacturing and third-party logistics firms, with the sectors accounting for 33 per cent and 25 per cent of overall enquiries. “At 17 per cent, food and beverage firms also showed a decent level of interest [up from 8 per cent in the preceding six months].”

Going forward, the options at Dubai World Central will be a key theme for investors looking at specialty assets. Dubai Logistics City, part of the DWC master-development, had strong absorption rates in recent months following the announcement of Dubai Expo 2020.

“The occupancy rate at DWC Freight Houses remains above 95 per cent, with agents reporting strong levels of enquiries for this type of airside accommodation,” the report adds.

Source: Gulf News Back to Index

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DEVELOPER GOES AGAINST

CONVENTION AT NEW PROJECT

WEDNESDAY 29 JANUARY 2014

The conventional wisdom in Dubai’s realty market is to make sure speculative buying and selling do not happen. But one developer has now decided to break with convention.

Dubai based Al Madina Al Raeda has just launched the Dh500 million Elite Downtown Residences project at the much in-demand Burj Downtown locality, with unit prices averaging Dh1,800 a square foot

But where the project veers off the tried-and-tested track is that the developer is not placing any sort of restrictions on buyers selling the off-plan units on in the secondary market.

“We have no restrictions on selling, because we believe that a free market, which includes investors, end-users and tenants combined, should decide and not be controlled by developers as is the case all over the developed world,” said Juwaad Beg, CEO of Al Madina Al Raeda. “The project is open to both investors and end-users and we leave it to the buyers to decide what they want to do with their assets. If a buyer wants to cash in on the second or third day after he bought, so be it.”

The master-developer of the Burj Downtown, Emaar Properties, has in place strict provisos on secondary sales in its sales and purchase agreements. Market sources say these include having the original off-plan buyer meet a certain percentage of the payments before he can sell on. (Also, Dubai had raised transaction charges to 4 per cent in a bid to curb the flipping of units on inflated price movements.)

Pricing

According to Simon Gray, regional head at Chesterton International, Emaar has had several off-plan project launches at the Downtown Dubai since 2012. “They have been priced in the range of Dh2,000- 2,800 and have appreciated between 8-10 per cent over the last year,” Gray said. “Emaar Properties, in its corporate presentation, said over 95 per cent of the units launched in 2012 and 2013 have been sold.”

Which does raise the question as to why Beg is coming in with a lower pricing for the Elite Downtown Residences?

“As a developer we feel the profitability at the price range of Dh1,800 a square foot is acceptable,” said Beg. “Currently, there isn’t any off-plan stock at the Downtown except on the secondary market, with entry levels starting at Dh2,400 per square foot due to the fees and premiums. So our product is approximately 20 per cent below market value from day one.”

The developer is also offering incentives such as its own direct payment plan with three-year tenure. It is also projecting rental yields of 7-9 per cent on the units.

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Al Madina Al Raeda has helmed other projects — five towers have been handed over in Dubai Sports City and another two are in the process. Together, these represent more than 2,000 furnished units.

On further plans for the Downtown locale, “At present we don’t have any other plots as they are extremely difficult to come by. But with the Elite Downtown, we are trying to make a statement.”

Source: Gulf News Back to Index

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IT'S OFFICIAL: RENTS IN DUBAI'S

SPRINGS COMMUNITY WENT UP BY 60% IN 2013 THURSDAY 30 JANUARY 2014

Lease rates for two beds villas jump to Dh150-120,000 pa from Dh75-100,00 pa

Rents for two bed villas in the Springs community have jumped by 35 to 60 per cent in the past one year, while three-bed units saw a 20 per cent rise, a comparison done by Emirates 24|7 of Real Estate Regulatory Agency's (Rera) rental index reveals.

The first rent index of 2013 had put rents for two-bed villas at Dh75,000 to Dh100,000 per annum and three-beds at Dh150,000 to Dh200,000 pa. The first update for 2014 now states rates at Dh120,000 to Dh135,000 pa for two-beds and Dh180,000 to Dh200,000 pa for three-bed villas.

But when compared to online classified listings, the index rates are still lower than the current market rate.

Two-bed villas are currently listed at Dh120,000 to Dh160,000 pa and three beds were being leased for Dh190,000 to Dh240,000 pa.

Parvees Gafur, Chief Executive Officer, PropSquare Real Estate, told Emirates 24|7: "There is always a demand for the units in the Springs, considering it as the most established townhouse community close to Sheikh Zayed Road. With access to majority of the prominent schools and with community facilities and services, they are a step ahead when compared to similar districts.

"Probably with the rents having gone up it could have restricted tenants to upgrade themselves to bigger properties within the community."

The community, he says, has always been a major hit with the Europeans and affluent Asians.

In its fourth quarter 2013 report, Jones Lang LaSalle cited Reidin, saying villa rental index had reached its highest value since the creation of the index in January 2009, rising by 13 per cent year-on-year.

The global consultancy expects rents and prices will continue to increase during 2014, but the rate of growth will decline from the levels witnessed during 2013.

The springs, developed by Emaar Properties, comprises townhouses built around man-made lakes. Properties here range from two-bedroom to four-bedroom townhouses and are located close to The Greens and The Meadows.

Source: Emirates 24/7

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O VER 160 NATIONALITIES INVESTED

IN DUBAI PROPERTY IN 2013

TUESDAY 28 JANUARY 2014

Foreign ownership continues to drive Dubai’s realty, with more than Dh114 billion in transactions last year being attributed to these buyers, according to figures released by the Dubai Land Department. The overall number of transacted properties in the emirate last year was valued at Dh236 billion.

Indian passport holders represented the bulk of the purchases, followed by British and Pakistani nationals. In all, foreign nationals from 162 countries ended up buying real estate in Dubai in 2013. “Investors from around the world are finding that Dubai is offering a particularly attractive climate to undertake property business,” Sultan Butti Bin Mejren, director-general at the Land Department, said.

UAE and GCC nationals combined — totaling 7,548 investors — funded Dh33 billion of the overall transactions, with the former accounting for Dh24 billion. Saudis followed with Dh4.6 billion.

Arab investors from outside of the Gulf added a further Dh12 billion, with Jordanian nationals topping the list at Dh2.6 billion. Lebanese and Egyptians followed.

“The city is now the focus of attention from investors across the world and we expect the sector to expand significantly, encouraged by the ‘feel good’ factor that has accompanied the news of the [Expo] win.”

Robin Grey, country manager at Chesterton International, believes the present circumstances could also raise the interest of institutional investors.

“Funds and large investors from Asia typically sit on huge cash surpluses scouting for investment propositions,” said Teh.

“They are looking at commercial buildings, retail space and hotels as key assets since they directly stand to benefit from the Expo.

“Many local institutions such as Emirates REIT have also expanded their investment portfolio by accumulating assets such as [the] recent purchase of a floor at Index Tower.”

Source: Emirates 24/7 Back to Index

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AJMAN SET FOR FIRST STARWOOD

HOTEL

MONDAY 27 JANUARY 2014

Ajman is set to get its first Starwood hotel as the emirate builds up its hospitality sector.

The 205-room luxury Ajman Saray opens on the Ajman corniche on Saturday.

“Ajman is still not a much known destination,” said Michele Frignani, general manager of Ajman Saray. “But it has pristine beaches, is close to the Sharjah and Dubai airports, and a free zone that is expanding rapidly.”

The group is collaborating with Ajman’s tourism board to focus more on the destination.

With a starting room rate of Dh950 per room a night, the resort is targeting the leisure market, which is expected to constitute about 65 per cent of the hotel’s guests. With 1,000 square metres of meeting space and a 480-square-metre ballroom, the hotel is also aiming for the corporate sector.

The top countries for overseas tourists are expected to be Russia, Germany and the United Kingdom, Mr. Frignani said.

“But weekend escapers from the neighbouring emirates and domestic tourists will form a majority of the guests,” he added. The Luxury Collection is among the upscale brands of the New York-listed Starwood group, along with St Regis. The Connecticut-based company has 1,517 hotels worldwide, of which 23 are in the UAE, including Ajman Saray, according to the group’s website. There are three Luxury Collection hotels in the UAE, of which two are in Dubai. The group has eight hotels in the pipeline across Dubai, Abu Dhabi and Sharjah by 2016.

The first year’s occupancy rate at the Ajman property is expected to be above 50 per cent.

The new property will employ 350 people across 19 nationalities.

“By attracting affluent international travellers, we expect Ajman Saray to set the benchmark for luxury hospitality in the region and to also contribute positively to the GDP and economic health of Ajman,” said Sheikh Ammar bin Humaid, Crown Prince and chairman of the Executive Council of Ajman, in a statement.

The Starwood group is among a handful of hospitality companies that are expanding their presence in the emirate. Early last year, the Dubai-based Hospitality Management Holdings opened its flagship property 254-room Ajman Palace.

The overall contribution of hotels and restaurants to Ajman’s economy is, however, negligible.

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In the latest figures available, from the 2013 annual report that the emirate’s Department of Economic Development released last month, the sector constituted2.3 per cent of Ajman’s economy in 2012, or Dh348 million. The figure has been growing annually at 4.3 per cent between 2010 and 2012.

In 2011, Ajman had 27 hotels accounting for a little more than 2,000 rooms and employing about 1,000 people, the report said.

In the latest statistics available, the emirate hosted 602,033 guests in 2012, a number that grew at 48 per cent annually. The hotel occupancy rate was 55 per cent, a growth of four percentage points.

The average room rate dropped to Dh218 a day in 2012 from Dh274 in 2009. This led to the increase in occupancy rates and pushed up hotel revenues by 10 per cent to Dh123m in 2012, the report said.

Russia and the Baltic states were the top countries of origin for tourists to the emirate followed by Europe, the report said. Domestic tourists comprised 7 per cent of the guest numbers.

Source: The National Back to Index

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DESTINATION DUBAI CONFERENCE TO

LAY EXPO 2020 INVESTMENT GROUNDWORK

MONDAY 27 JANUARY 2014

Government and private companies across sectors such as infrastructure, hospitality and property are gathering for a two-day conference starting tomorrow in Dubai to discuss investment plans in the emirate ahead of Expo 2020.

The discussions at Destination Dubai 2020 are expected to centre on project opportunities worth an estimated US$120 billion. The conference will act as a networking platform for companies looking to boost their presence in Dubai, said Andrew Davies, the head of conference production at the organisers Meed.

Transport infrastructure, which encompasses roads, railway, ports and aviation, and mixed-use property construction, as well as commercial and residential spaces, would enjoy the most growth in anticipation of Expo 2020, Mr. Davies said.

In the construction sector some US$368 billion worth of projects were already under way in Dubai, whereas the figure stood at $33 billion in the transport sector.

“There’s a great deal of real estate development already planned, but what we expect to see in the short term is some prioritisation of these projects, taking into account those which will add the most value to Dubai’s delivery of the Expo,” said Matthew Tribe, the director for master planning and design at the British-based engineering company Atkins.

“[This year] we’re likely to see some consolidation and refocusing of ideas, particularly from government-backed real estate organisations.”

The property, infrastructure and hospitality sectors have already shown signs of increased activity by reviving stalled projects or announcing new ones. And some companies expect the projects to have a legacy use.

“All the investment in tourism and leisure, as well as enabling transportation and infrastructure, will also support Dubai’s long-term economic sustainability,” Mr. Tribe said. “It’s important to bear in mind that the Expo is part of the journey that Dubai is on rather than the destination itself.”

The Expo pavilions themselves would find other uses around the world, as per the tradition following these events, he said, and the site itself would be used for different projects because of its location between Dubai and Abu Dhabi.

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The InterContinental Hotel Group alone has eight hotels in the pipeline, with almost 2,000 rooms, including three InterContinental, two Crowne Plaza and three Stay bridge Suites properties. The group already has 18 hotels under five brands in Dubai, Abu Dhabi and Sharjah.

Dubai Marina will get the first InterContinental this year and a Crowne Plaza will open in the area in 2016.

“These two hotels will be well positioned for travellers flying into the new Dubai World Central Al Maktoum International Airport,” said Ronald Egelman, the director of development for Middle East and Africa at IHG.

While the event is expected to bring tourists and boost the hospitality infrastructure of Dubai and Abu Dhabi, the neighbouring emirates are also gearing up ahead of Expo 2020

“Governments and private investors are already spotting and developing tourism opportunities in all seven emirates and IHG has hotels in the pipeline in both Ras Al Khaimah and Fujairah,” Mr. Egelman said.

The event could generate more than 277,000 jobs between 2013 and 2021, 40 per cent of which would be in the travel and tourism sector, said an economic impact report, released in May, from Dubai Expo 2020 team.

The event is likely to attract 25 million visitors between October 2020 and April 2021, 70 per cent of whom are forecast to be from outside the UAE. To cater to them, Dubai expects to add 80,000 new rooms by 2020, Dubai Tourism and Commerce Marketing estimates.

Currently, Dubai has about 65,000 hotel rooms, according to STR Global.

The World Expo is the world’s third largest event behind the Olympics and the Fifa World Cup, said Meed’s Mr. Davies.

Those attending Destination Dubai 2020 include public and private entities such as Dubai Multi Commodities Centre, Dubai Electricity and Water Authority, Dubai World Central, Dubai Municipality, Dubai World Trade Centre, the Roads and Transport Authority, the Knowledge and Human Development Authority, and the Department of Economic Development, as well as the developers Emaar Properties and Meraas.

Source: The National Back to Index

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GLOBAL FIRMS MOVE DUBAI UP THEIR

LOCATION AGENDA

MONDAY 27 JANUARY 2014

Dubai’s hard-hit office market could benefit from a wave of corporate occupiers heading to the city. The real estate adviser CBRE says in a report that almost one in three global companies has identified the Middle East as an area for potential growth – with Dubai set to be the main beneficiary.

CBRE polled more than 70 decision-makers at global corporations that collectively occupy 2.7 billion square feet of offices worldwide. It found that the proportion of multinationals considering expanding into the Middle East over the coming two years has increased to 30 per cent, from 24 per cent a year ago.

The property consultancy found that 56 per cent of occupiers said that getting access to new markets and new customers was a key factor in guiding their decisions over where to locate, up from 40 per cent a year ago, as companies responded to signs of global market recovery.

“The Middle East is witnessing strong economic and population growth which represents significant investment opportunities for global businesses. Dubai being the region’s commercial and tourism hub remains a focal point in the Middle East and a destination of choice for global corporate looking to expand into this region or the lucrative African market, ” said Nick Maclean, the managing director of CBRE’s Middle East office.

“The World Expo 2020 announcement in November last year has further fuelled this positive sentiment and over the period of the next six years we will see real estate assets exhibiting strong growth and development,” he added.

India was the most popular new destination for multinationals looking to expand, with 48 per cent of those surveyed saying they would look to expand into the subcontinent over the coming two years, compared with 48 per cent a year ago.

Africa was also considered a desirable new market to enter with 34 per cent of respondents reporting that they would look to expand there in this year’s survey – up from 21 per cent a year ago.

But CBRE reported that there had been a decline in interest in expansion into China and Central and Eastern Europe.

Office rents in Dubai were hammered by the global financial crisis as companies cut back the amount of space they occupied, or left the city altogether, prompting rents to fall by as much as 50 per cent.

Jones Lang LaSalle reported this month that rents in a few prime office locations in Dubai had increased slightly in 2013. But with vacancy rates in the city centre standing at 29 per cent and up to 850,000

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square metres of new offices due to be completed this year, average rents in most areas remained unchanged.

“Landlords remain more bullish in the most prime locations, being less flexible on rents or willing to offer rent-free periods. Landlords in secondary locations, however, remain flexible as they continue to struggle to attract tenants,” said Dana Williamson, the head of agency for the Middle East at the property company Jones Lang LaSalle.

“The office market in Dubai continues to see a flight to quality, with the best-performing locations being DIFC, Burj Downtown and Tecom A&B. Rental values in secondary locations remain under downward pressure,” she added. “2014 is expected to see a continuation of the two-tier office market in Dubai, with prime locations improving and secondary areas remaining under downward pressure.”

Source: The National Back to Index

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ABU DHABI AIMS FOR 3 MILLION

TOURIST MARK THIS YEAR

WEDNESDAY 29 JANUARY 2014

Abu Dhabi aims to attract more than 3 million visitors in 2014 after a record-breaking year that was boosted by double-digit growth at the city’s airport.

“Given the fact that we have now achieved the original hotel guest targets set for 2014, we have reviewed our goals and are uplifting our sights by 10 per cent,” said Sheikh Sultan bin Tahnoon Al Nahyan, the chairman of Abu Dhabi Tourism & Culture Authority. “We are now looking to achieve 3.1 million hotel guests this year.”

The hospitality sector was one of the biggest beneficiaries of the 12.4 per cent increase in passenger growth at Abu Dhabi International Airport to 16.5 million passengers.

Last year, Abu Dhabi reported record tourist arrivals of 2.8 million, a rise of 12 per cent over 2012.

For hotels and hotel apartments, revenues rose 18 per cent to Dh5.48 billion.

Guests have also started to stay longer in the emirate’s 150 hotels and hotel apartments. The average length of stay rose 7 per cent to 3.13 nights and occupancy rates rose 9 per cent to 71 per cent.

Despite the demand, room rates held steady during the year. The average room rate dipped marginally by 1 per cent to Dh447.60 as more hotel properties were completed. The rise in tourist numbers has coincided with Etihad Airways’ rapid route expansion.

It launched flights to Washington, Amsterdam, Sao Paulo, Ho Chi Minh, Belgrade and Sana’a, besides increasing frequencies on other existing routes.

India remained the largest source market for Abu Dhabi with 175,929 travellers, a 27 per cent rise on 2012 visiting the emirate last year.

Guests from the United Kingdom followed with 162,973 Britons visiting last year, a 16 per cent lift on the previous year.

Germany came in third with 119,590 hotel guests.

Domestic tourists, however, remained the largest group of travellers. Almost a third of the total, or 960,476, checked into hotels here. That represents a rise of 8 per cent on 2012.

Among the new airlines to connect with Abu Dhabi were Air Baltic and Philippines Airlines, with new routes to Riga in Latvia and Manila in the Philippines.

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The airport was the most popular with passengers travelling to and from India, Germany, England, Thailand and Saudi Arabia.

The airport’s Midfield Terminal project, which is expected to open in July 2017, will increase its capacity to 30 million passengers a year. The current capacity is 12.5 million.

Business activity at the airport also improved.

Last year, the airport handled 706,000 tonnes of cargo, a rise of 24.4 per cent.

In December alone, more than 1.5 million people passed through the airport, an increase of 14.4 per cent compared to the previous December. The volume of cargo handled was up 27 per cent to 66,000 tonnes.

Source: The National Back to Index

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ROOM AT THE TOP FOR THIS DUBAI

PENTHOUSE

THURSDAY 30 JANUARY 2014

A multimillion-dirham pad in Dubai Marina’s most expensive tower is up for sale. For Dh26 million, you can buy a penthouse that totals 6,370 square feet, and boasts four bedrooms and a maid’s room – as well as more than 20 other rooms.

The balcony of your new purchase offers views of the Jumeirah Palm, and allows you to look out on the tourists and beachgoers below. The tower is 210 metres tall, which means you, will enjoy exceptional views over one of Dubai’s most exclusive neighbourhoods.

The pool’s temperature is controlled by hand. Your car is catered for with a custom valet service. There’s a gym, naturally.

Buyers will also have access to a 24-hour concierge service, and a private health club and spa.

The property was designed by Atkins, the company that was behind the design of the Burj Al Arab.

The penthouse is located next to Dubai Marina Mall, and the Ibn Battuta Mall, so shopping addicts will be well catered for. It is also next to the Dubai Marina walk, which means you will have plenty of beachside walking and waterfront dining to choose from.

The building won gongs after its opening from the Homes Overseas Awards. It was presented with the Gold Award for best luxury development, and won prizes for best use of technology, and best interior design.

You will be living in one of Dubai’s most exclusive districts, where high-flyers amble and stroll between artificial and natural shorelines.

Source: The National Back to Index

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GLUT OF GOLF VILLAS THREATENS TO

CROWD DUBAI MARKET

SATURDAY 01 FEBRUARY 2014

As golf fans flock to watch Rory McIlroy and Tiger Woods compete in the Dubai Desert Classic, property developers are hoping the event will provide another boost to golf-themed home construction in the emirate.

Thousands of new villas are planned to be built around new golf courses in Dubai as the emirate’s property market returns from boom to bust to boom again. Hundreds of them had been delayed since the onslaught of the global financial crisis.

In the past six months, developers in Dubai have announced plans for at least 28.5 million square metres of new golf course developments – the equivalent of about 7,000 football fields.

These include 11 million sq metres of development at Dubai Hills, which was launched last June by Emaar and Meraas. The project, which is to be built in the first phase of Mohammed bin Rashid City, will be set around a new 18-hole golf course. A first tranche of off-plan villas was quietly launched to 70 selected buyers in December.

At the same time, Dubai-based Damac is developing its Akoya scheme, another 3.9 million sq metres of luxury villas around the Trump International course. Damac launched sales for a first tranche of villas at its Rockwood, Richmond and Topanga clusters in November.

Farther south at Dubai World Central, the 140 sq kilometre mega-project around Al Maktoum airport, yet another golf course is earmarked to be built. In December, Emaar Properties signed a deal with the emerging aviation hub to develop a 13.6 million sq metre golf course and villa community alongside hotels and a mall.

But the resumption of large-scale golf-themed housing construction has led some analysts to urge caution.

“Golf course development is an example of a concept that worked very well at the start in Dubai, but then everyone jumped on board and started doing it, leaving the market oversupplied,” said Victoria Garrett, associate director for residences at Knight Frank’s Dubai office.

“The problem is that the market will be saturated with all of these projects. With so much product set to come on to the market, we believe it is questionable whether all of these schemes will actually be completed as planned.”

The swaths of new golf course development come just as developers look at dusting down plans for thousands more golf villas stalled by the global financial crisis.

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The government-owned developer Jumeirah Golf Estates is hoping to press ahead with its plans for another two golf courses – Water and Wind – at its Jumeirah Golf Estates project, where it has started handing over the first tranches of completed villas five years later than first planned.

And at the Cityscape Global property show last year, the Saudi developer Tanmiyat restarted marketing its plans to develop Living Legends, a Peter Harradene-designed nine-hole golf course in Dubailand.

Last July, Dubai Holding said it was considering reviewing its Tiger Woods Dubai golf course plans after work on the scheme, which was to be surrounded by 22 palaces and 75 mansions, was suspended in 2011.

“If you do want to buy an off-plan golf villa, then try to choose a trusted developer with a track record of delivering on time and to the quality that was promised,” said Ms Garrett. “Think carefully about how many other villas are set to be built in the development.”

Source: The National Back to Index

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SKAI HOLDINGS GETS AED737.6M

FUNDS

MONDAY 27 JANUARY 2014

Skai Holdings, the Dubai-based real estate investment company, on Monday announced it had secured Dh737.6 million ($201m) financing for its Dh3.75bn Viceroy Dubai Palm Jumeirah, ensuring the project is fully funded.

The financing agreement was arranged by the Industrial and Commercial Bank of China (ICBC), China's largest bank, marking its first project financing deal for a hospitality project in the Middle East.

"It is a pleasure to announce such an important step for the real estate sector and that total construction funds for a project of this calibre have been fully secured at such an early stage of development. This is a practice which is encouraged and supported by Rera and is a clear mark of Dubai's real estate sector reaching maturity and a reassuring sign to off-plan investors and buyers in the Emirate. We would also like to thank the developer for its exerted efforts to comply fully with real estate regulations," said Khalid Obaid Al Mutaiwei, Senior Director of the Real Estate Development Trust Account Department at RERA.

"Since the commencement of our operations in the UAE in 2008, the total assets of ICBC have doubled year on year. ICBC is pleased to and shall continue to provide support for the development of the UAE economy. This is the first time ICBC is able to fully participate and facilitate the financing of a hospitality and residential development project in the region. We believe this opportunity is an ideal step for ICBC to enter into Dubai's growing Real Estate Industry" added Zhou Xiaodong, CEO of ICBC Middle East.

Today's announcement follows several months after Skai Holdings said it would form a special purpose vehicle with Viceroy Dubai Palm Jumeirah's main contractor, China State Construction Engineering Corporation (Middle East) (L.L.C) (CSCECME), following its investment in the project.

"An increasing number of Chinese investors are looking to the Middle East and the UAE in particular as they seek to diversify their assets and investment portfolio. The Emirates' strategic location, its strong infrastructure and growing real estate sector means it is set to become a vital area of growth for Chinese investment," said Yu Tao, President and CEO of China State Construction Engineering Corporation (Middle East) (L.L.C).

"Securing the final round of funding for the Viceroy Dubai Palm Jumeirah marks another key milestone in the construction of the project and further demonstrates our pledge to complete the project on time and to the highest standards," said Nabil Akiki, CEO, Real Estate Development of Skai Holdings.

"I am extremely bullish about Dubai's hospitality sector, looking ahead the UAE's successful Expo 2020 bid, together with its growing population and renewed economic outlook will see its tourism industry continue to flourish," added Kabir Mulchandani, Group CEO of Skai Holdings Limited LLC.

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The main structural works of the Viceroy Dubai Palm Jumeirah project are currently underway and ahead of schedule. The luxury residential and hospitality project, which is slated for completion in 2016, will offer its guests 479 spacious rooms and suites and 222 signature Viceroy Residences with breathtaking views of the Arabian Sea.

The property's attractive location, situated at the base of The Palm Jumeirah archipelago, is easily accessible from mainland Dubai. The ideal location is just 15 minutes from the city's downtown centre, and is close to major tourist and business attractions such as the Dubai Marina and Dubai Media City.

Viceroy Dubai Palm Jumeirah will feature services and amenities created especially for the diverse group of business and leisure guests expected to frequent the hotel and residences. The hotel will also include spectacular dining venues hosted by world-class chefs and a modern spa. A beach club and a 100 metre-long pool will also be complemented by children's clubs, entertainment and sporting activities.

Source: Emirates 24/7 Back to Index

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JLT UNITS NEAR DUBAI METRO 26%

COSTLIER... WORTH IT?

MONDAY 27 JANUARY 2014

Rents in residential towers located near Metro stations in Jumeirah Lakes Towers (JLT) are between 13 to 26 per cent higher than ones further away, according to data analysed by Emirates 24|7.

Asking rents in towers close to the Metro station in JLT currently range between Dh85,000 and Dh100,000 per annum (pa) for one-bedroom units and Dh110,000 to Dh130,000 pa for two-bed units.

Lease rates for one-beds in The Palladium range between Dh95,000 and Dh100,000 pa, while two-beds are being leased for Dh110,000 pa to Dh130,000 pa.

Rents in MAG 214 start from Dh85,000 to Dh95,000 pa for one-bed and two-beds are at Dh110,000 to Dh120,000 pa.

In Indigo Tower, rents for one- and two-beds range between Dh85,000 to Dh90,000 pa, and Dh115,000 and Dh120,000 pa, respectively.

In contrast, rents vary between Dh75,000 to Dh85,000 pa for one-beds and Dh90,000 to Dh95,000 pa for two-beds where residents necessarily have to take a taxi or need to walk for over 20 minutes to reach the station.

Why pay a premium?

Kaushik Shah, an accountant by profession, says: "We don't have a car and I don't intend to buy one. So we thought of renting an apartment near the Metro station."

He admits he pays a premium, but adds: "If you take into consideration the cost of taxis or registration, insurance and parking permits for a car, it seems worth paying the premium."

Mary Ditas works as a manager of a shop in Dubai Airport.

"We friends have taken this apartment in a tower next to the Metro. It makes our commute to work and back home easier. There is no traffic, no delays and it's very convenient."

Metro's positive impact

A comparative study with countries that have mass transit systems in place, mostly the Metro, such as the UK, Germany, Japan, Hong Kong, and the US, revealed that public transit means in general have a positive impact on appreciating the value and rents of properties, and those rates can raise by three to 50 per cent over the years.

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In fact, a Roads and Transport Authority (RTA) report in 2012 said that the Dubai Metro, since it started in 2009, has had a positive contribution to the appreciation of the value of lands and commercial properties in the vicinity of the stations with price going up by seven to 34 per cent.

(Note: Asking rents are based on online listings on various real estate portals and newspaper adverts.)

Source: Emirates 24/7 Back to Index

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MAJID AL FUTTAIM TO INVEST AED3BN

IN DUBAI OVER NEXT 5 YEARS

MONDAY 27 JANUARY 2014

Dubai-based conglomerate Majid Al Futtaim (MAF) said it will invest more than Dh3 billion over the next five years to expand its business in Dubai after recording a 10 per cent increase in revenue last year, according to a statement on Monday.

The move is part of an initiative to support Dubai’s tourism vision for 2020.

MAF’s plans include two new hotel developments and renovations of two existing hotels; the redevelopment of the Mall of the Emirates and Deira City Centre; the opening of four Carrefour supermarkets and two hypermarkets, as well as construction of a new 14-screen cinema complex.

The company is also “evaluating” the development of a community mall in Dubai.

“Expansions and renovations are a trend across the retail market, which reflects how strong it has been over the last 12 months,” Mat Green, head of research for the UAE at CBRE Middle East, told Gulf News. He added that there is demand for more retail space in the market.

According to Iyad Malas, MAF Holding’s CEO, the company’s future regional growth “will be driven by regional large-scale expansion plans for our portfolios in Egypt in addition to new malls envisaged in Saudi Arabia and Oman, and residential projects in Lebanon, in addition to hypermarkets, cinemas, family entertainment centres and snow park openings.”

MAF’s revenue rose to Dh23 billion in 2013 over 2012, while its earnings before interest, taxes, depreciation and amortization (Ebitda) grew by 12 per cent year-on-year to Dh3.3 billion, according to the statement. The company did not provide a figure for its net profit.

MAF’s total assets are valued at more than Dh39 billion. The company has a net debt of around Dh7 billion, the statement added.

MAF Properties, one of MAF’s three business units, saw revenue grow by 13 per cent to Dh3.5 billion, while its Ebitda rose 14 per cent to Dh2.2 billion.

In addition, MAF’s shopping malls recorded a 7 per cent increase in footfall to 157 million.

The company’s 11 hotels recorded a 20 per cent increase in revenue per available room (RevPAR — a benchmark for performance).

MAF Retail, the operator of Carrefour stores in the Middle East, posted a 9 per cent growth in sales last year, while revenue reached Dh18.7 billion. Its EBITDA was up 9 per cent to Dh1 billion.

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MAF Retail added eight new hypermarkets and 10 supermarkets last year. It has a portfolio of 56 hypermarkets and 53 supermarkets in 12 countries across the Middle East, North Africa and Central Asia.

Meanwhile, MAF Ventures saw revenue grow by 16 per cent to Dh891 million in 2013. Its Ebitda reached Dh148 million, marginally up by 1 per cent.

Last year, the company issued the first ever US dollar-denominated corporate hybrid from the Central and Eastern Europe, Middle East, and Africa (CEEMA) region to partially fund the Dh2.55 billion minority share purchase from Carrefour, the statement showed.

According to Malas, the company’s “liquidity position is sufficient to cover the financing needs over next 2-3 years.”

He added that the company will continue to look at “further debt optimisation plans opportunistically.”

Source: Gulf News Back to Index

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DUBAI'S PRIME APARTMENT PRICES

STILL FAR BELOW 2008 LEVELS, RISE IMMINENT

MONDAY 27 JANUARY 2014

Average prime apartment prices in Dubai are still about a third below where they were during the 2008 peak, suggesting they still have plenty of scope to rise, according to Knight Frank.

"... hardly any new high-end apartments are due to be delivered over the next 12-18 months (the majority of new prime supply will be made up of villas), further supporting the case that prices in the former segment will play 'catch-up'," the UK-based consultancy said in a new report.

The prime residential market will benefit from the growing population of high net worth individuals (HNWIs), attracted by the emirate's favorable tax regime, strong lifestyle characteristics and a well performing economy.

"We think that residential prices could rise by another 10 to 15 per cent over the next year, with the differential between prime apartment and villa prices closing as the former outperforms," the report said.

In annual terms, both prime apartment and villa prices saw double-digit increases of 15 per cent in Q4, 2013. But, the growth rates were at their weakest levels since mid-2012.

A number of measures were introduced in order to address concerns that another speculative bubble is forming. Between September and December 2013, the Dubai Land Department increased the transfer fee from two per cent to four per cent, Emaar Properties speculated on banning property agents from flipping off-plan property before handover and the UAE Central Bank announced new mortgage caps for both expatriates and nationals.

"All of this helped to reduce transactional activity across the wider residential sector in the final part of last year. That said, at the end of November, it was announced that Dubai would host Expo 2020. This not only provided a strong boost to confidence, but also put the emirate back in the spotlight," JLL said.

Earlier this month, Dubai Land Department (DLD) revealed that total value of real estate transactions rose by 53 per cent to Dh236 billion in 2013 compared to Dh154 billion in 2012.

Developers, the report said, responded by announcing a number of mega residential projects, albeit the recent trend of falling lending to the real estate sector suggests that perhaps not all of these will reach onsite. In addition, it is worth noting that most of these schemes are at the midrange of the market, rather than prime.

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But this year's supply pipeline isn't small; new prime residential units (with a value of Dh10 million or over) are expected to be equivalent to just under 10 per cent of existing stock. However this figure should fall to just 1.6 per cent in 2015, before rising to 4.6 per cent in 2016.

Jones Lang LaSalle, a real estate consultancy, has stated that nearly 28,000 new units were expected to be completed this year, with rents and prices continuing to increase in 2014, but the rate of growth would decline from the levels witnessed last year.

Source: Emirates 24/7 Back to Index

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BRAKES ON ABU DHABI RENT HIKES:

22,000 NEW UNITS IN 2014

MONDAY 27 JANUARY 2014

Abu Dhabi will see supply of 22,000 new units in 2014, nearly double the number released in 2013, according to a Jones Lang LaSalle report.

The majority of the new supply is likely to be delivered in Reem Island, Saadiyat Island, Danet and Rawdhat, the global consultancy said in its Q4 Abu Dhabi real estate market report.

It warned, however, many of these deliveries may face delays.

In 2013, 11,600 units were handed over, which took the total supply of residential units to 218,000.

Approximately 4,400 residential units were delivered in Abu Dhabi during Q4 with the majority of these units being within Oceanscape and Gate Tower 1 on Reem Island, Al Bustan Complex on Airport Road, the Landmark Tower on the Corniche and the Danet Building by Darwish Bin Ahmed & Sons in Danet Abu Dhabi.

Besides, a number of units are scheduled for handover within National Housing communities including Al Falah and Watani developments this year.

Despite the increase in supply, JLL believes that the removal of the rent cap could potentially cause an increase in rents in the short to medium term before rental levels normalise.

Average asking rents for prime two-bedroom apartments have increased eight per cent in Q4 to reach Dh140,000 per annum, with average prime rents registering an annual increase of 17 per cent during 2013.

Demand continues to remain strong due to a variety of factors including: Government spending initiatives leading to job growth; government incentives to increase demand such as the decision to limit housing allowances to those employees living in Abu Dhabi and narrowing rental differential between Abu Dhabi and Dubai.

Price rise

Property prices jumped by up to 25 per cent in 2013, but the gains were limited to prime projects. In the final quarter, prices rose by six per cent.

Asking prices increased for both apartments and villas, to Dh15,200 per square metre and Dh11,000 per square metre, respectively. The increases in investment areas do not represent a market-wide recovery and price growth was not witnessed elsewhere, JLL said.

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The consultancy added that prices are likely to rise further following the Expo 2020 announcement and continued improved sentiment across the country.

Source: Emirates 24/7 Back to Index

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DUBAI TRAM EFFECT: MARINA AND JBR

PROPERTY PRICES SET TO RISE

MONDAY 27 JANUARY 2014

Steve Morgan, head of Cluttons Middle East, said: "The current strength of buyer demand in Dubai Marina and JBR has no doubt been further bolstered by the enhancement of critical infrastructure in and around this popular residential location. Phase 1 of The Dubai Tram network, scheduled to open in November this year, is expected to boost buyer appeal even further by offering alternative commuting options to nearby business hubs such as Dubai Internet City, Media City and Knowledge Village."

According to Cluttons Winter Property Update, Dubai Marina continued to record increased levels of deal activity during Q3, with capital value growth rates between 8.5 per cent and just over 10 per cent, ahead of the average for Dubai.

Morgan said: "With Meraas' Jumeirah Beach Village and Blue Water's development, featuring the Dubai Eye, we anticipate interest to secure a home in Dubai Marina and JBR to gather further momentum."

The JBR community remains the top target for most buyers due to its beachfront location and extensive Jumeirah Beach Walk retail colonnade.

"Despite its relative maturity having launched in 2002, we have recorded a consistently high level of buyer demand for JBR properties, which is underpinned by the world class cosmopolitan lifestyle that comes with the area in addition to the unrestricted views of the Arabian Gulf further add to the appeal."

The Dubai Tram and other infrastructure projects that are underway are being fast-tracked to complement Dubai's 2020 Tourism Vision of hosting 20 million tourists. Due to the successful Expo 2020 bid, improvement in infrastructure across Dubai is inevitable, with major investment accelerated towards transport infrastructure, retail, leisure and hospitality ahead of the event.

Morgan added: "It's not just individual buyers who are rushing to close deals at Dubai Marina and JBR; we are also recording a sharp upturn in investor appetite for both tenanted and vacant buildings, driven by attractive yields, which currently hover around the 6% - 8% mark.

"The Dubai Tram was designed to be an integral part of the Dubai transport network, linking the Dubai Metro and the Palm Monorail and running along Al Sufouh Road and Jumeirah Beach Road from Mall of the Emirates at one end, to the Dubai Marina on the other."

Source: Emirates 24/7 Back to Index

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391 EMIRATI FAMILIES GRANTED NEW

HOMES IN AL FALAH

SUNDAY 26 JANUARY 2014

The start of 2014 has proved to be an especially happy time for 391 Emirati families who have been granted new homes in the capital’s Al Falah area.

To collect the keys and deeds to their new homes, dozens of eligible beneficiaries today (Sunday) queued up at the headquarters of the Municipality of Abu Dhabi City.

“I have been on welfare since I got divorced nearly two decades ago, and have been living with my parents and two children. Receiving a house such as this is one of the biggest gifts I can expect as an old lady, and I am immensely grateful to our leadership for this initiative,” Saadia Muharram, an Emirati homemaker in her 60s, told Gulf News.

Abdullah Al Hossani, a 50-year-old father with 21 children, said he had been living in a tiny two- bedroom house in Abu Dhabi city with his family.

“I have been applying to be granted a house for 10 years, and today is therefore a great day for us,” he said.

Other recipients appeared just as overjoyed as they waited in line to receive the necessary documents for their new homes, and wished the best of health to UAE President His Highness Shaikh Khalifa Bin Zayed Al Nahyan following his recent illness.

The houses are part of a comprehensive residential project being implemented under the directives of the President and the orders of General Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces.

A representative from the Abu Dhabi Centre of Housing at the Ministry of Presidential Affairs earlier told Gulf News that beneficiaries are selected based on their level of need for new housing. Factors that are considered include family size, whether the parents are divorced, whether any parent is deceased and whether earning members have special needs.

The residential project is being built by Aldar Properties in several phases. It consists of more than 4,800 villas spread over 12.5 million square metres and five residential districts. The villas have been designed in three architectural styles and, when completed, the neighbourhoods will also include mosques, schools and other amenities.

The first set of completed houses was handed over to 1,000 recipients in August 2012, while another set of 1,000 beneficiaries received keys to their homes in October 2012. A third set of 1,326 completed villas were handed over to their new owners in August last year.

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In order to facilitate efficient distribution of the deeds in this phase, 20 counters have been specifically designated at the municipality, and free parking spaces have been reserved for beneficiaries outside the building. The counters are operational from 8am to 8pm this week, and recipients said that the process of receiving the deeds and getting water and electricity connections for their new homes had taken less than half an hour.

In a statement issued last week, the municipality called on recipients to bring copies of their passports, family books and original identity cards to facilitate the process.

In addition, the municipality has also deployed mobile units that can facilitate the handing over of required documents to disabled beneficiaries at their homes.

Source: Emirates 24/7 Back to Index

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MOHAMMAD BIN RASHID CITY:

DISTRICT ONE GETS DUBAI RULER’S APPROVAL

TUESDAY 28 JANUARY 2014

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Tuesday inaugurated District One of the Dh30 billion Mohammad Bin Rashid City, adjacent to Meydan City and four kilometres away from Burj Khalifa in Downtown Dubai.

Shaikh Mohammad unveiled the memorial plaque of the urban, mixed-use, leisure and sports development which spans more than 54 million square feet of prime freehold land with District One alone stretching 4 million square feet.

Shaikh Mohammad viewed the mega model of the development at the sales centre, where he was briefed by Saeed Humaid Al Tayer, Meydan Group Chairman and CEO, owner and developer of the project.

Al Tayer said the project has 600 hectares of open and green parkland, waterways, woodlands, a water park, the largest crystal lagoon body of water in the world with 7km of stunning lagoons and 14 km man-made beaches, alongside retail zones, leisure and sports attractions. The City will be completed in 2018-2019.

Al Tayer said this unique green heart for Dubai will be surrounded by 1,500 premium luxury villas – to be delivered in four phases before Dubai Expo 2020 – creating one of the lowest-density residential environments in any major international city.

Shaikh Mohammad then toured the 300-villa community development and viewed designs of modern Arabic, Mediterranean, contemporary types of 4 to 8 bedrooms villas.

The inauguration ceremony was attended by Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Authority and Chairman and CEO of Emirates Airline and Group, and a number of senior officials, heads of government departments in Dubai, and the team supervising the project.

Source: Emirates 24/7 Back to Index

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MAG TO DEVELOP DH800M

HEALTHCARE CITY PROJECT

THURSDAY 30 JANUARY 2014

Dubai-based MAG Group has signed a joint venture agreement with Dubai Healthcare City to develop approximately one million square feet mixed-use project at an estimated cost of around Dh800 million.

The development which is still at the concept design stage is expected to include two hospitals covering a total of 260,000 square feet, plus an 80,000 square feet clinic; a residential complex of four buildings with combined gross floor area of 430,000 square feet; a hotel apartment with a gross floor area of 80,000 square feet and 100,000 square feet of retail space.

The development will also include a mosque and one of the most advanced automated car parks and extensive hard and soft landscaping. It is envisaged that the whole project will be completed by the end of 2016.

Addressing officials from DHCC, Moafaq Al Gaddah, Chairman of MAG Group said, “The healthcare sector in Dubai is on the cusp of a sustained period of growth and will need to build medical facilities for the future. This expansion is being fuelled by numerous factors.

“First the natural growth in the local population and in the number of expatriate arrivals as the economy expands, looking ahead to Expo 2020. Two, the growth of private health insurance due to changes in government employment policy and Dubai’s growing status as a medical tourism hub for the Middle East,” he added.

The feasibility of the project needs little explanation. According to the DHA, total inpatient visits to healthcare centres grew by a CAGR of 9%, between 2006 and 2011 totalling 183,000 visits in 2011. By that time almost 57% of all inpatient facilities were in private hands, as inpatient visits to private healthcare centres grew by a CAGR of 18% over the same period and a clear sign of changing preferences in Dubai.

It is a similar picture for outpatient care. Outpatient visits to private healthcare centres grew by a CAGR of 8% between 2006 and 2011. The private sector now dominates outpatient care, with 73% of all outpatient visits in 2011.

Underscoring MAG Group’s commitment to Dubai, the Healthcare City project announcement comes hard on the heels of MAG Group’s recent flurry of announcements at Cityscape Global last year.

At the show, MAG Group unveiled a quartet of new Dubai freehold residential and retail leasing projects. These included an AED 2 billion development in Meydan, consisting of residential townhouses and low- rise apartment buildings and an AED 450 million retail area specialising in interior design and decorative products. Located in the emerging suburb of Al Barsha 2 and branded the ‘Art Center’, it is scheduled for handover in 2015.

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Photo caption: The development which is still at the concept design stage is expected to include two hospitals covering a total of 260,000 square feet.

Source: Emirates 24/7 Back to Index

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L IMITLESS CHANGES CHIEF EXECUTIVE

THURSDAY 30 JANUARY 2014

The property developer Limitless, which is owned by the Dubai Government, has replaced Saeed Ahmed Saeed as chief executive with an executive from its sister company Nakheel.

In a statement yesterday, Limitless said it had appointed Mohammed Rashed bin Dhabeah, responsible for building 8,000 homes in Dubai since 2010, to take over as chief executive. Mr. Rashed is Nakheel’s managing director for development.

Limitless said Mr. Rashed, who has been with Nakheel since 2003, would be responsible for spearheading development at Limitless’s projects in the UAE, Saudi Arabia, Russia and Vietnam, while continuing to work in his role at Nakheel.

Limitless is working on plans to build 50,000 homes at its Al Wasl project outside Riyadh in Saudi Arabia, 750 homes at Zagorodny Kvartal north of Moscow in Russia and accommodation for 4,000 residents at Halong Star in Halong Bay, Vietnam.

While Nakheel’s business model has been to develop major projects in Dubai, Limitless was formed in 2005 to be its overseas counterpart.

Growing demand for Dubai property before the global financial downturn led the company to take on ambitious projects including a US$11 billion Downtown Jebel Ali project as well as plans for a proposed 75-kilometre waterway valued at the time at Dh40.3 billion.

Limitless and Nakheel were hit hard by the financial crisis and were transferred from the Dubai conglomerate Dubai World to direct ownership by the emirate’s Government in 2011.

In November 2013, Limitless said that it would restart construction of its final apartment block at The Galleries in Downtown Jebel Ali. However, plans for some of Limitless’ more ambitious projects such as the Arabian Canal remain on hold as the company reviews its investments.

Source: The National Back to Index

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DEPARTMENT OF FINANCE- ABU DHABI

RENEWS MANAGEMENT CONTRACT OF ITS COMMERCIAL BUILDINGS WITH ADCPB

SATURDAY 01 FEBRUARY 2014

The announcement was made during a visit by Hamad Al Hurr Al Suwaidi, Chairman of the Department of Finance to the Abu Dhabi Commercial Properties ' Headquarters; in the presence of Eissa Mohamed Al Suwaidi, Chairman of Abu Dhabi Commercial Bank , Mohamed Sultan Al Hameli, Director General of the Department of Finance, Ahmed Bader Al Qubaisi, Director of Commercial and Residential Buildings Loans at DoF, and Alana Eraiqat, CEO of Abu Dhabi Commercial Bank and Chairman of the Board of Directors of ADCP.

The visit began with an informative tour of the Abu Dhabi Commercial Properties? different departments, during which Hamad Al Hurr Al Suwaidi was introduced to the work processes of the company, and had a chance to meet its employees and to be informed about the different services that are being provided to customers.

The renewal of this contract falls within the continuous endeavors of the Department to enhance strategic partnerships with the private sector. It also aims to promote further stability across the Abu Dhabi property market, and overall economy, by ensuring first-class services for both commercial and residential buildings and their various stakeholders.

Under an agreement signed with the Department of Finance - Abu Dhabi in April 2007, the bank was entrusted with responsibility over the Commercial Buildings Management, formally known as the Department of Social Services and Commercial Buildings "Khalifa Committee". The management of such buildings was in-turn assigned to the banks specialized subsidiary Abu Dhabi Commercial Properties (ADCP).

The commercial buildings managed by the two companies are located in the capital Abu Dhabi, Al Ain City, Western Region, Sila and Delma Island. This geographical spread of the properties has prompted ADCP to create an electronic system to track the rental operations and services of the buildings at their locations, via a devoted team of experts from the construction and property sectors.

Commenting on the renewal of this agreement Hamad Al Hurr Al Suwaidi, Chairman of Department of Finance - Abu Dhabi said: "The renewal of this agreement with Abu Dhabi Commercial Bank underlines our continuous commitment towards the support of the local community, by ensuring best practices are consistently adopted for commercial buildings, the tenants, contracting and property companies as well

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as other stakeholders. This agreement will also contribute to the stabilization of the Real Estate Market through the development of its performance, in accordance with Emirates regulations and legal procedures.

On his part Essa Al Suwaidi, Chairman of Abu Dhabi Commercial Bank stated that: "We are proud of the trust conferred upon us by the Department of Finance, and pledge to always be at the fore-front of serving the community with utmost transparency. This only serves to enhance our contribution to the development and growth of the property sector, in line with the strategy of the Emirate of Abu Dhabi and based on the economic vision of 2030."

Source: Emirates News Agency (WAM) 2014 Back to Index

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

With 29 years of Middle East experience, VALUATION & ADVISORY Asteco’s Valuation & Advisory Services team Our professional advisory services are conducted brings together a group of the Gulf’s leading by suitably qualified personnel all of whom have real estate experts. had extensive real estate experience within the

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

[email protected] 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.