News Brief 17

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

NEWS BRIEF 17

SUNDAY, 29 APRIL 2018

RESEARCH DEPARTMENT

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

REAL ESTATE NEWS

UAE / GCC UNION PROPERTIES TO PROPOSE RAISING FOREIGN STAKE TO 49% WOMEN AND PROPERTY FIVE THINGS YOU SHOULD KNOW ABOUT NON-MUSLIM WILLS WHAT IS A DEFECT LIABILITY PERIOD? EMAAR PROPERTIES DECLARES CASH DIVIDEND OF DH1B UNION PROPERTIES DISMISSES THREE BOARD MEMBERS EMAAR HOSPITALITY GROUP HITS 50-HOTEL MILESTONE REAL ESTATE SCAMS IN UAE UNLIKELY TO SHAKE INVESTOR TRUST: REPORT BMI RESEARCH UPBEAT ON SAUDI ARABIA'S ECONOMIC REBOUND THIS YEAR DUBAI 10 CHEAPEST PLACES TO RENT IN DUBAI TODAY DUBAI DEVELOPERS CAN MAKE HAY WITH HOLIDAY HOMES DUBAI ADOPTS AI TO EXPOSE FAKE REALTY FIRMS A REAL RESTATE CONUMDRUM: SPACE AND AFFORDABILITY LIVING IN THE FINANCIAL NERVE CENTRE ASK FOR A HIGHER RENT AND LOSE A POTENTIAL TENANT ‘HAPPY CITIES’ IS THEME FOR REALTY EVENT DUBAI’S RENTAL DECLINES COOL OFF IN FIRST QUARTER NAKHEEL AWARDS DH595M CONTRACT FOR NAD AL SHEBA MALL DUBAI SEES 2% JUMP IN VISITORS DURING FIRST QUARTER SPINNEYS OPENS DOORS TO FIRST SUPERMARKET AT DUBAI AIRPORT DAMAC TARGETS TO OPERATE 15,000 HOTEL ROOMS BY 2021 IT'S TIME TO BARGAIN HARD WITH YOUR DUBAI LANDLORD REDEEM AIR MILES TOWARDS BUYING YOUR HOME NEW MORTGAGE LAW TO BOOST FUNDING FOR DUBAI REAL ESTATE

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

REAL ESTATE NEWS

DUBAI HOUSE RENTS MAY FALL MORE IN THESE AREAS... HOMEFRONT: 'MY TENANT IS THREATENING COURT OVER A RENTAL DEPOSIT?' DUBAI RENTS Q1, 2018: ALL YOU NEED TO KNOW KLEINDIENST GROUP SEEKS APPROVAL FOR DH2.5BN ‘FLOATING VENICE’ RESORT IN DUBAI $27M SALES SEEN AT DUBAI'S FIRST BANYAN TREE RESIDENCES PROJECT DUBAI SOUTH LAUNCHES INITIATIVES TO SPUR PRIVATE SECTOR INVESTMENT DEVELOPER BEGINS HANDOVER OF DUBAI MARINA PROJECT HOMES UAE'S AZIZI AWARDS $120M DEALS FOR DUBAI HEALTHCARE CITY PROJECTS DUBAI SCHOOL FEES DROPPED BY 15% IN PAST YEAR ADDRESS RESIDENCES JUMEIRAH RESORT + SPA PHASE 1 SOLD OUT NAKHEEL SIGNS DH588M DEIRA ISLANDS HOTEL DEAL WITH VIENNA HOUSE DUBAI BUSINESSES UPBEAT AS CONFIDENCE IMPROVES DUBAI TO BUILT STUDENT HOUSING COMMUNITY IN DIAC BY 2020 OLYMPIC-SIZE POOL, GIANT GYM AND SPA COMING TO NAKHEEL’S JUMEIRAH PARK COMMUNITY ABU DHABI ABU DHABI RENTS DECLINE AGAIN IN Q1 BUT SOME UNITS BUCK THE TREND ABU DHABI RENTS IN Q1, 2018: ALL YOU NEED TO KNOW ABU DHABI OFFICE RENTS FALL AS COMPANIES CONTINUE TO CONSOLIDATE NORTHERN EMIRATES SHARJAH INT'L SEES 5% PASSENGER GROWTH, PLANS $410M EXPANSION ROVE HOTELS REVEALS PLAN FOR EXPANSION IN RAS AL KHAIMAH INTERNATIONAL SWINGING UK INVESTOR INTEREST IN OFFPLAN’S DIRECTION US COAST DWELLERS PUSHED OUT AS STORMS BRING WAVE OF WEALTHY

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UNION PROPERTIES TO PROPOSE RAISING FOREIGN STAKE TO 49% Thursday, April 26, 2018 Union Properties is calling in shareholder approval to allow foreign investors to pick up to 49 per cent of shares in the company. This is to be decided at a general assembly meeting on May 17, where the amended articles of association will be presented. Meanwhile, the general assembly will also vote to “open candidacy” for three new directors on the board to fill the vacancy created by the dismissal of its former chairman, Khalid Bin Kalban, and two others. If the proposal to raise the foreign ownership limit goes through, and there is nothing to suggest it won’t, it will become the second UAE developer in recent weeks to raise the ceiling to 49 per cent. Aldar had earlier gone through the process, raising it from 40. In Union Properties’ case, it is a much higher jump — from 25 per cent. Foreign investors held 5.71 per cent of UP’s shares, as of close of trading on April 25. Concerted moves are on at the individual developer level and within the wider Dubai property market to allow foreign funds and institutional investors a higher exposure. Union Properties had record net profits of Dh180 million for the first quarter of 2018, a substantial gain from the Dh42,5 million in the same period a year ago. Source: Gulf News Back to Index

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WOMEN AND PROPERTY Wednesday, April 25, 2018 If you are a non-Muslim female property owner in Dubai, how do you protect your property? A new statistic released by the Dubai government says that around 30 per cent of Dubai’s property is owned by women. The information came from Sultan Butti Bin Mejren, director general of the Dubai Land Department, who said that this shows the accumulation of large amounts of wealth in female hands. This shows the UAE as an open and progressive country where men and women are free to make their own choices about investment, according to their own judgement. But as a lawyer, the news also brought a question into my mind. How do the many non-Muslim female property owners in Dubai deal with the delicate question of inheritance? Research has shown that Western women are the ones to prompt their husband to make a will, while Muslim women have a predetermined inheritance structure. That system has been challenged by female protestors in Tunisia, where the government is reviewing the traditional inheritance rules. But overall it’s a system that has applied in Muslim legal systems throughout the centuries, and it continues to be implemented across the Islamic world.Most pertinent to female homeowners — and indeed male ones — is the property will. This protects up to five properties in Dubai and Ras Al Khaimah, allowing you to choose who will inherit them, if the worst were to happen. For non-Muslims, though, it raises sensitive issues. Women or men with valuable assets may not wish to allocate their wealth according to Sharia; instead they want to decide for themselves the beneficiaries. In the UAE, there is a solution. The governments of Dubai and Ras Al Khaimah allow non-Muslims with assets to register a will that will distribute their estates according to their preferences. It’s provided through the DIFC Courts, part of the Dubai International Financial Centre, which offers a legal system based on English Common Law. The DIFC Wills Service Centre offers a variety of services, covering everything from bequeathing property to the guardianship of children. Most pertinent to female homeowners — and indeed male ones — is the property will. This protects up to five properties in Dubai and Ras Al Khaimah, allowing you to choose who will inherit them, if the worst were to happen. Also available are financial asset wills, protecting cash, government securities and stocks and shares, as long as they are held by a bank or brokerage in Dubai or Ras Al Khaimah. Mothers bringing up children will also be interested in the guardianship will. This allows you to name interim guardians in the UAE for your offspring and also permanent guardians, often family or friends in the home country. Finally, you can bring all these elements together in the full will, covering all assets and also guardianship. Many families find that a mirror full will suits their needs, as it allows both parents to create documents that “mirror” their wishes over guardianship and distribution of assets. The DIFC Wills Service Centre has registered well over 3,500 wills and its own statistics reflect a growing number of female property owners in Dubai. In 2016 and 2017, 38 per cent of those registering a will were women. But if three in 10 of all properties in Dubai are owned by women, that means there are many thousands more owning very valuable assets who have no effective will in place. In the rush and pressures of daily life, they may wish to consider if choosing who will ultimately benefit from their acquired wealth should become a higher priority as they organise their financial affairs. Source: Gulf News Back to Index

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FIVE THINGS YOU SHOULD KNOW ABOUT NON-MUSLIM WILLS Wednesday, April 25, 2018 If you are a non-Muslim expat or an overseas investor with assets in Dubai or Ras Al Khaimah but residing in your home country, you better get a will done to ensure smooth inheritance to your chosen beneficiaries. Without a will, chances are that your assets will be passed on to specific blood relatives as per the local inheritance law that follows Sharia principles of pre-determined allocation. “In the absence of registering a will, then you will be looking at Sharia that will distribute that property to specific blood relatives in predetermined proportion,” says Sean Hird, director of DIFC Wills Service Centre (WSC). Established in 2015, the DIFC Wills Service Centre provides a system whereby non-Muslims can register a will at the DIFC Courts, Dubai’s international English language commercial courts.But non-Muslim residents and non-residents with assets in Dubai and RAK have the option of opting out of Sharia through a will and chose their home country laws for inheritance arrangements. Many expats who live in the regional Islamic countries — and often outnumber the locals — may not be aware that they are governed by Sharia when it comes to inheritance, although their home countries may have a different set of laws. However, in an effort to enhance Dubai as a destination for foreign investment, the government, through a federal law, has allowed non-Muslims to opt out of Sharia and chose their home country law in the matter of heritance. “It’s a government initiative that’s responding to the needs of those investing and living in Dubai and RAK. It is an initiative that provides freedom of choice and certainty of outcome in terms of distribution that you get,” says Hird, adding that this makes Dubai even more competitive and attractive as an international property investment destination, as it creates a level playing field in respect to inheritance. To make things easier for people who are non-residents and can’t visit in person to register a will, the WSC also offers first-of-its-kind virtual registry options whereby everything — right from creation and registration to witnessing — can be done online using video-link, and identity verification offered through VFS Global centres spread across 129 countries. Here are five things you should know about non-Muslim wills and why you must invest in it: 1. Dubai, being a Muslim country, follows Sharia under which inheritance arrangements are pre-determined — specific blood relatives are given predetermined allocations, with no discretion. 2. But non-Muslim residents and non-residents with assets in Dubai and RAK have the option of opting out of Sharia through a will and chose their home country laws for inheritance arrangements. 3. Wills can be made using freely available will templates on the WSC website after paying relevant registration fees, which range from Dh5,000 to Dh7,500 depending on the template used. Wills can be registered with the DIFC Court from anywhere in the world using a virtual registry facility via video-link, using mobiles, laptops or computers. 4. There are currently five types of DIFC wills: guardianship will, property will, free zone company will, financial assets will and the full will. Except for the full will and the guardianship will, all other wills can be registered online at the moment. 5. There is no restriction on what types of asset can be covered by the DIFC Will, as all moveable and immovable assets — from apartments, land and cars to company shares and monies in bank accounts — can be included. Source: Gulf News

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WHAT IS A DEFECT LIABILITY PERIOD? Wednesday, April 25, 2018 Congratulations, your property is finally ready. Construction is complete and you are now a proud owner. While the main interest is now to ensure a quick return on investment by renting out the property as soon as the building completion certificate is signed, which officially allows the occupation of the building, it is also a very critical time to carefully audit the property. Time frame The so-called defect liability period (DLP) has started — it is a set period of time after the construction of the project has been completed, during which the contractor has the right and must return to the site to remedy any defects. A typical DLP lasts 12 months. Any defects or faults that arise during this period are classed as obvious defects and are discovered by normal examination. Alternatively, these can be hidden defects that can only be discovered after a period of time, after usage and occupation, for example due to defective materials or workmanship leading to water leakage. These defects must be put right by the contractor at the contractor’s own expense.The inclusion of a defects liability period in a contract benefits both the contractor and the developer. For the developer, it provides an opportunity to request that the contractor return to site and remedy a defect, while for the contractor it is usually cheaper to return and remedy a defect than pay for the developer’s losses. It is also worth noting that a defect, which is not discovered until after the defects liability period has expired, is still a breach of contract for which the contractor is liable, subject to limitation arguments. In this circumstance, the contractor has no right to return to the site to repair the defect, but is liable to the developer for damages. The inclusion of a defects liability period in a contract arguably benefits both the contractor and the developer. For the developer, it provides an opportunity to request that the contractor return to site and remedy a defect, while for the contractor it is usually cheaper to return and remedy a defect himself than to be asked to pay for the developer’s losses in arranging for someone else to remedy that defect. Having a practical contractual remedy can, therefore, save the parties time and cost compared to arbitration or litigation. In-depth property inspections during this period become essential for the developer, as it will not only ensure the quality of the property, but also control the repairs and future costs. Third-party inspection This is the time for the developer to scrutinise the development for any flaws and faults. The audit and reporting is ideally done by an independent third-party inspection company or the employed service provider, the maintenance facilities team, if the development is being occupied. It is not unusual for a contractor to dispute the claim as a maintenance complaint rather than a defect. Over a period of one year, there may be many meetings that will take place to scrutinise and follow up on the completion of the reported defects. Any change in service provider during this short period may have a negative impact on the landlord, therefore, increasing the cost and time factor. Specialist equipment requires proper inspection and snagging as some service providers might not be well versed with the operation and knowledge. Several training sessions are compulsory to be provided by the original manufacturer and installer to ensure the on-site operation team is familiar with the system and operation of the unit, e.g. BMS, BTU, CCTV, gate barrier, access control, swimming pool, steam and sauna, Jacuzzi, HVAC system, heat exchanger, district cooling, etc.

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Usually, subject to the contract, a material stock of between 10 per cent and 15 per cent is to be acquired from the main contractor in respect to tiles, granite, marble, door locks and handles, V-belts, smoke, heat and multi-sensor detectors, pull stations, manual call point and paints, which might not be available in the market in the coming few years or a five- to eight-year period. Care is taken while signing any documents in respect to DLP snags as there might be a hindrance in the future for the execution of certain tasks. It is not uncommon that defects are seen as design defects, which make rectification difficult and will remain an added expense during the building operation, such as inadequate building façade cleaning provision and obstructed service access to the building MEP infrastructure. This requires careful examination and cross verification in drawings. In essence, the defect liability period is the only time the developer can lay claim to any unfinished, defective and substandard quality to be rectified by the contractor. Proper coordination and follow through to control and ensure the rectification will ultimately save from future escalating expenses under the developer. Once the retention money is released to the contractor, the developer has agreed to the condition of the property to his or her satisfaction and as such, will take over full liability over the property. Source: Gulf News Back to Index

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EMAAR PROPERTIES DECLARES CASH DIVIDEND OF DH1B Sunday, April 22, 2018 Emaar Properties PJSC on Sunday evening approved the distribution of a Dh1 billion ($272.25 million) dividend to shareholders. Sunday’s announcement brings the total cash dividend for the year to Dh4 billion ($1.089 billion). The distribution of Dh3 billion ($816.8 million) in dividend was approved at Emaar General Meeting in January. The new dividends came from the proceeds of the public offering of shares of Emaar Development. Sunday’s dividend represents 14 per cent of the share capital, or 14 fils per share. The AGM also elected Emaar’s new board comprising nine members, down from 11. The new board members are: Mohammad Alabbar, Jasem Mohd Abdul Rahim Al Ali, Ahmad Thani Rashed Al Matrooshi, Abdullah Saeed Bin Majed Belyoahah, Jamal Hamed Thani Buti Al Merri, Arif Obaid Saeed Mohammad Al Dehail Al Mehairi, Abdul Rahman Hareb Rashed Hareb Al Hareb, Ahmad Jamal H Jawa and Jamal Majed Khalfan Bin Theniyah. “With a total cash dividend of Dh4 billion approved by the assembly, we are highlighting our commitment to creating outstanding value for our shareholders,” Alabbar said. “Our focus is to sustain the momentum through our developments in property, retail and hospitality as well as our international operations. At the current pace, Emaar will grow more than double in the next five years. We invest and seek the best talent, and have reimagined our business for the digital era.” Auditor for 2018 The meeting also approved the report by the Board of Directors on the activities and financial position of the company, the Auditor’s report, and balance sheet for 2017. EY was appointed as the auditor for 2018. In 2017, Emaar Properties recorded a net operating profit of Dh5.704 billion ($1.553 billion), a growth of 16 per cent over the FY 2016 net operating profit of Dh4.917 billion ($1.339 billion). Total revenue for FY 2017 increased by 21 per cent to Dh18.812 billion ($5.122 billion), over FY 2016 revenue of Dh15.540 billion ($4.231 billion). Source: Gulf News Back to Index

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UNION PROPERTIES DISMISSES THREE BOARD MEMBERS Sunday, April 22, 2018 Union Properties made another cut with its past by dismissing three senior members of its Board of Directors, including Khalid Bin Kalban, its former chairman. The other two whose tenures have been cut short are Ali Fardan Ali Al Fardan and Mohammad Sef Darwish Ahmad Al Ketbi. Moreover, in resolutions approved by the general assembly, it was decided “not to absolve” Bin Kalban for the year ended December 31, 2017. The same resolution was also applied in matters related to Al Fardan. This was confirmed in a statement issued to Dubai Financial Market on Sunday, in which the master-developer also confirmed the appointment of EY as auditors. KPMG was the incumbent. No details of the replacements for the three now vacant positions — or when the process will be set into motion — were made available. It was last year, after its annual meeting, that Union Properties went through a major reshuffle of its Board, leading to the ouster of Bin Kalban as chairman and followed by the confirmation of Nasser Bin Yousuf as replacement. Wholesale changes were made in the company’s structure and priorities, including those related to the management of its land bank. Immediately thereafter, in August last, the company restated its second quarter of 2017 financials, which then showed losses of Dh2.3 billion. It also made provisions for Dh2.8 billion. Since then, UP has launched a dedicated hospitality division and recast its master plan for Motor City, the biggest development on its hands now. Turnaround Union Properties has released interim results that show a profit of Dh180 million for the first quarter. The full results for the quarter have not been released. This followed a review by EY, in its then capacity as external auditor. It will be interesting to see what happens next on the Bin Kalban front. Bin Kalban came on board specifically to script a turnaround for UP after the property market crash of 2009. In his years at the helm, he disposed off non-core assets and also managed to bring down the debt load. But the mid-2014 correction in the market again started to place stress on the financials. Union Properties retains a minority stake in a joint venture it has with Dubai Investments, where Bin Kalban is the CEO and Managing Director. (Dubai Investments has bought out the 50 per cent held by UP in Emicool, the district cooling company, for Dh500 million. DI is currently working on a timeline for a public float of Emicool.) Source: Gulf News Back to Index

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EMAAR HOSPITALITY GROUP HITS 50-HOTEL MILESTONE Sunday, April 22, 2018 Emaar Hospitality Group (EHG) on Sunday announced that it had marked a historic milestone of 50 hotel projects in its portfolio. These include 35 upcoming projects in the UAE and international markets, as well as 15 hotels and serviced residences that are operational in Dubai. Speaking at Arabian Travel Market 2018, Olivier Harnisch, CEO of Emaar Hospitality Group, said that the hospitality industry in the region has matured and remains very dynamic, especially in the UAE. "We are driven by the competitive environment," he said. "Tourism grows by over 10 per cent per year, and there are few markets in the world that grow this fast. We have identified 58 markets that we want to develop in. These include the GCC, which is very close to home for us, as well as 20 key cities in Europe. In addition, we are also looking at markets in China, India, and Asia," he added. He added: "Since 2007, we have been shaping a new identity and presence in the hospitality scene, and with three distinctive brands, we have now achieved a remarkable milestone in our growth journey of having a robust portfolio of 50 hospitality projects - both operational and upcoming - together offering more than 25,000 rooms and residences. While our primary footprint is the UAE and the Middle East and North Africa region, we are delighted by the response from owners and developers to our hotel concepts, and are expanding to new geographies." In the UAE, EHG has expanded its presence from Dubai to Abu Dhabi, Sharjah, Ras Al Khaimah and Fujairah. As of April 2018, the group has 12 operational hotels in Dubai - five each under the Address and Rove brands and two by Vida. The development pipeline in the UAE includes 12 Address, nine Vida and four Rove hotels. Internationally, seven Address hotels are being developed in addition to three Vida properties and one Rove hotel. "Over two million room nights come into Dubai every year," Harnisch said. "The city enjoys very high occupancy levels, which are some of the highest recorded globally The future of the industry looks bright," he added. Source: Khaleej Times Back to Index

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REAL ESTATE SCAMS IN UAE UNLIKELY TO SHAKE INVESTOR TRUST: REPORT Sunday, April 22, 2018 The UAE Ministry of Interior have warned the public against falling victims to real estate scams and fraudulent home ads hunting for ill-gotten funds. "The public should take their precaution against those scammers who use bogus real estate listings inside and outside the country with the assistance of technology and social media platforms to dupe their victims into buying non-existent property," said Brigadier-General Dr. Salah Obeid Al Ghoul, Director-General of the Ministry of Interior's Community Protection and Crime Prevention. Violations and penalties UAE Cybercrime Law includes a range of violations and penalties, with fines ranging between Dh50,000 and Dh3 million depending on the type and severity of offence. Those caught gaining access to a website, network or system without authorisation are to be imprisoned and fined at least Dh50,000, but fines can go as high as Dh1 million if personal information is stolen or deleted. Those caught using technology to invade someone else's privacy - which can even include eavesdropping, copying photos or publishing (false) news - can be jailed for six months and face fines of between Dh150,000 and Dh300,000. The Ministry of Interior is working on training officers and its anti-crime squad on a regular basis through engaging them in relevant training courses or conferences that hone their skills and help them keep pace with the latest standards and criteria in this area, Dr. Al Ghoul noted. In a relevant development, Saif bin Gholeita, the Executive Director of the Technology Development Department at the Telecommunications Regulatory Authority said that the TRA has taken all necessary steps to rein in such practices, which are common in most of the world countries, not only in the UAE. Promotional SMS ban He explained that RTA bans promotional SMS from 9.00 p.m. till 7.00 a.m. daily, imposing penalties on all violators, including companies which breach the RTA's legislation, including suspension of service. Scams won't shake trust In the meantime, real estate professionals, interviewed by WAM, have expressed their confidence that such malpractices are not likely to have any bearing on the realty sector, nor will they shake the consumer trust in the resilient property platform, which is noted for its transparency and credibility. Khalifa Saif Al Mohairbi, Board Chairman of Arabian Gulf Investments Group said bogus ads and rental scams are not likely to cause the sector to forfeit investor confidence, urging homeownership seekers to exercise caution and verify the sources of unknown ads and listings before taking their purchase decisions. Khaldoun Mohamed Saleh, Executive Director of property company, called for the toughening penalties against such bogus ads, noting that licensed real estate sectors in the country are capable of offering their products at competitive prices that draw consumers away from such scammers. Source: Khaleej Times Back to Index

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10 CHEAPEST PLACES TO RENT IN DUBAI TODAY Thursday, April 26, 2018 Still struggling to pay the rent? You’re obviously not alone. While property experts say housing costs are getting cheaper, tenants in Dubai are still seeing apartments that cost more than the whole year’s salary of a low-income earner. A one-bedroom flat in Jumeirah Beach Residence (JBR), a popular neighbourhood because of its proximity to the beach and accessibility to the Dubai Tram or Metro, can cost anywhere between Dh95,000 and Dh116,000, according to Dubai’s rental index. But not all places are created equal. Renters can find similarly-sized units, albeit farther away, in other communities. In International Media Production Zone (IMPZ), residents can rent flats for about half the price at Dh50,000. Residential buildings at IMPZ Dubai Overall, apartments in non-freehold locations offer the cheapest options for tenants, with areas like Al Awir, Al Quoz and Al Qusais offering the minimum rates for studio apartments at Dh19,000, Dh21,000 and Dh25,000, respectively. For those who are on the lookout for freehold properties, the top locations to check out are Dubai Investment Park, International City and Gardens, where a studio can be rented for Dh 25,000 Dh30,000 and Dh34,000, respectively. International City According to Reidin, apartment rental prices registered an annual decline of 7.3 per cent in the first quarter of 2018, while villa rates dropped by 10.15 per cent. And, as more newly completed units become available to rent, there are certainly good deals – and incentives – to be had. “There are a growing number of landlords willing to accept rental payments in multiple cheques,” Cluttons said in its latest report. “Landlords are increasingly looking to incentivise in order to retain current tenants and have done so by setting more competitive prices and more attractive lease terms,” said Craig Plumb, head of research at JLL Middle East and North Africa. Based on the rents indicated in the RERA rental index as of April 26,2018, here are the cheapest and most expensive places for a studio apartment in Dubai: 10 cheapest areas for non-freehold (studio) Al Awir: 19,000 to 23,000 Al Ehibab: 21,000 to 25,000 Al Qouz: 25,000 to 31,000 Al Qusais: 27,000 to 33,000 Al Tawar: 28,000 to 34,000 Al Baraha: 28,000 to 34,000 Al Muhaisnah- Fourth: 30,000 to 36,000 Satwa: 30,000 to 40,000

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Al Jaffliya: 30,000 to 40,000

Abu Hail: 31,000 to 37,000 10 cheapest areas for freehold (studio) Dubai Investment Park: 25,000 to 35,000 International City: 30,000 to 36,000 Gardens: 34,000 to 42,000 International Media Production Zone: 35,000 to 43,000 International City CBD: 36,000 to 44,000 Discovery Gardens: 38,000 to 46,000 Dubai Silicon Oasis: 38,000 to 46,000 Dubai Sports City: 42,000 to 52,000 Green Community DIP: 42,000 to 52,000 Jumeirah Village: 43,000 to 53,000 Source: Gulf News Back to Index

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DUBAI DEVELOPERS CAN MAKE HAY WITH HOLIDAY HOMES Wednesday, April 25, 2018 Rather than be fixated on off-plan sales or longer term rentals, Dubai’s developers could aim big in another category — holiday homes. It was The Department of Tourism and Commerce Marketing has launched a plan to develop a timeshare market in Dubai to help broaden its tourism base. And within this space, developers have the means to play their part. “Although the long-term occupancy trend remains healthy in Dubai, it has slowed down in the past two years due to the massive supply of properties,” said Firas Al Msaddi, CEO of fäm Properties. “By embracing the concept of holiday homes and introducing legislation, the Government has created a new revenue stream for landlords. They can have tourists as tenants for the first time and this increases occupancy rates.” The new proposals could increase rental revenues for landlords and even help attract new investors. Holiday homes can bring up to 15-25 per cent more revenue than long-term rentals, Al Msaddi added. “It’s a perfect example of how Dubai reacts promptly to global market challenges and continues evolving, not just to keep up with the world’s leading cities, but to overtake them by being consistently creative and innovative. “Even in cities like London, Airbnb is not directly a government-regulated business. The fact that it is 100 per cent regulated here, by the DTCM as well as the Dubai Economic Department, shows how far ahead Dubai is in its thinking.” Right property Fäm Properties has signed up assets of more than Dh300 million under a holiday homes license from DTCM, for properties at the City Walk. The company plans to grow its total assets under holiday home management to Dh1 billion between City Walk, Downtown and Dubai Marina by year-end. “Although we don’t have years of historical data on holiday home returns, the right property with the right location tends to generate 15-25 per cent higher income for landlords compared with long-term rental,” the CEO added. “At times like the present, an over-supply of residential property means it takes longer to find tenants. These factors will persuade more landlords to choose the holiday homes option. They know they won’t be tied up by tenants’ rights of at least two year’s notice to vacate, or be held back from increasing rent for the first two years. “But not every property can be successful as a holiday home. We sometimes advise clients to stick to long-term rentals if we don’t believe their property has the right location, connectivity, size, view, layout or type.” * Landlords intending to sell can earn rental income up to the last day of ownership. To generate regular income, they need to ensure daily up-keep. A higher level of maintenance compared with long-term rental property makes holiday homes more attractive to buyers. “Once a healthy income trend is built over one or two years, the property becomes a major target for investors looking for high income generating properties,” says Al Firas Al Msaddi of fäm Properties. Source: Gulf News Back to Index

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DUBAI ADOPTS AI TO EXPOSE FAKE REALTY FIRMS Wednesday, April 25, 2018 The Dubai Land Department (DLD) said it will be using artificial intelligence (AI) to verify Ejari contracts starting this month. The new technology is part of DLD’s latest governance system for verifying lease contracts, and the AI will be used to correctly match contract signatures with those in the department’s database. The new system is aligned with the UAE Strategy for Artificial Intelligence launched by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, which represents a new stage in the development of the UAE as the nation progresses toward global leadership by improving government performance. “We at DLD are constantly looking for the best advanced technology solutions to prevent interference with the lease contract registration process,” said Mohammed Yahya, deputy executive director of the Rental Affairs Sector at the DLD. “The new system will detect the presence of fake companies, especially those with no documented headquarters on their commercial licences. These actions are part of our integrated initiatives that aim to enhance transparency across all operations, including those related to other economic sectors.” The new technologies will be used on all 2.5 million registered lease contracts in the Ejari database. Source: Gulf News Back to Index

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A REAL RESTATE CONUMDRUM: SPACE AND AFFORDABILITY Wednesday, April 25, 2018 While the growing number of competitively priced housing in Dubai has opened the property market to a much larger slice of the population, it also comes with a consequence: smaller residences. The days of “bigger is better” catchlines are now being replaced by greater focus on space and cost efficiency. This shift, however, is not unique to Dubai, says Pawan Batavia, CEO of Synergy Properties, who points out similar development trends in major cities around the world. While many off-plan projects are now relatively smaller, the average size of property in Dubai is still bigger compared with other major cities “The average property sizes in Dubai are still more than in the other major cities like London, where the average size for a one-bedder is 30 sq m, and 40 sq metre for a two-bedroom apartment.” Batavia adds: “Space optimisation is key for all developers that make the end product affordable, while making sure that users get maximum advantage of every square foot they pay for.” Mario Volpi, sales and leasing manager at Engel & Volkers, points out that in terms of price per square foot, smaller units actually come out more expensive, although buyers are more concerned about the total price. “In an off-plan development, a 360-sq-ft studio selling for Dh400,000 will be snapped up first even though the price per square foot is over Dh1,100, when the norm is Dh1,000, for instance,” says Volpi. “Developers are making the units smaller for the only reason that the ticket price then seems more affordable or reasonable.” Entry route for buyers Apart from giving more end users an opportunity to take a first step onto the property ladder, Lewis Allsopp, CEO of Allsopp & Allsopp Real Estate, says smaller units are also getting strong interest from investors. “They also make excellent investment options, so even if it’s for end use in the short term, if you want to take the next step on the ladder, or if you’re leaving Dubai and want to keep an investment, these properties will always sell and lease well,” says Allsopp. When evaluating price versus size, Allsopp says two things are important: location and the incentives offered by the developer. “If the property is of a smaller size, not cheaper but in an incredible location, then the property will still sell well,” says Allsopp. “If it is in the wrong location, then it’s going to stick in the market, as many attractive options are available and a buyer isn’t forced to settle because of a lack of choice. [Buyers want to know] how many amenities are there in the development. Are there cafes and restaurants? Is there a park and children’s play area? What else is on the doorstep? These are all questions a buyer will ask and all form part of the decision-making process.” Efficient space utilisation With smaller sizes, developers are now using space more efficiently and eliminating wastages, which have also resulted in lower annual maintenance fees for residents, says Rajiv Ghanekar, senior real estate broker at Keller Williams Real Estate Dubai. “Pick up any new project and you will see the enclosed kitchen space and the guest toilet or the powder room have made its way out of the floor plan,” notes Ghanekar. “As an example, by simply eliminating the guest toilet from a one-bedroom apartment in Downtown Dubai, there is space saving of 50-60 sq ft, resulting in a price reduction of Dh90,000-Dh100,000.”

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Open-plan kitchens are more common in compact-size residences

While the developer needs to be mindful of the size of the property, Atif Rahman, director and partner of Danube Properties, says affordable housing is not just about reducing the size of the property. “We need to deliver livable space and not matchbox-size units to make them cost-effective,” says Rahman. “It is about space planning and area efficiency. There are two key areas of focus when designing affordable homes; how to bring down the construction cost and how to deliver more usable space in less square footage. Also, the maintenance cost and durability of material used must be considered, as affordable homes target cost-conscious consumers.” Rahman says some new developments are now largely focused on delivering affordable homes by simply reducing the size of the property and compromising on amenities. “If it is for low-income housing, its fine, but if you are targeting the mid-income segment then these properties are going to largely struggle with high vacancy upon delivery, which will result in lower return in investment, thereby depreciating the asset value,” says Rahman. “Also, many property buyers are unable to imagine the size and design at the time of purchase, so it is the developer’s responsibility to deliver the best possible value and efficiency in the property. “There is also a recent observation in some properties where the unit has been planned with almost 50 per cent allocation to the balcony, meaning your balcony is as big as the apartment. These properties may look fine with the total size, but will under-deliver the apartment size. Hence, the buyers need to look prudently at all the details before deciding.” Value returns As the market becomes more competitive, investors are increasingly looking at high rental income, which has led to a rise in the demand for right unit sizes. Taking this into account, Imran Farooq, CEO of Samana Developers, notes that studios and one-bedroom apartments with the right sizes have been selling the most. “Developers are optimising the sizes, which will offer a greater rental return of 8-10 per cent,” says Farooq. “This trend is desirable for investors because they are looking at much better yield. The studios could give returns of up to 10-11 per cent, and the one-bedroom apartment can give a rental return of 8 per cent and above for potential buyers.” To help achieve good returns, Rahman adds that the property it must be designed keeping in mind the end user, and not just the buyer, who may not be the final occupant of the property. “The real estate transforms into a fantastic asset if the end users like the property and such properties will deliver a large return on investment,” says Rahman. “For example, if I bought my property for self-use, I still expect it to grow in value, thereby building equity, which I will be able to use to my liking in the future.” Micro units Zorro Ghura, senior global property consultant at Gulf Sotheby’s International Realty, says buyers now look for quality finishes, low entry price and flexible payment terms, while developers are catering for these new buyers by offering suitable options. “Some developments are even making micro-units to keep the price as low as possible to attract local and international investors,” says Ghura. “Developers estimate higher returns due to this, and it attracts more investment. However, I don’t believe this will last because with rents also becoming more affordable, tenants today are being very demanding with price versus size. “Eventually, it could hurt the investors with properties being vacant much longer. Moreover, end users look into the size and dimensions of a unit as they are buying a home to live in and not just an investment. Hence, most end users will stay far away from micro-units.”

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Ghanekar says the trend of building micro-units may have come from urban property hotspots such as New York, Hong Kong, London and Mumbai. “The target audience for these developments is working professionals who spend 13-15 hours out of home, and hence for them a smaller-size apartment would be huge on savings,” he says. “What the tenants and end users would prefer depends on their preferences that are unique and very individual. However, it is good to have a mix of options on the market and let the final user decide and choose what best matches his or her preference and pocket.” Improved layouts Ghura says developers are now making more optimum use of space with the help of international architects and design teams that operate in Dubai. “Developers are they optimising the area to have as many units in a development to maximise profits and keep the pricing down to attract new audiences to invest,” he says. “Smaller-size units are not always cheaper on price per square foot, which most new buyers do not look at,” says Ghura. “But it is essential to study the development and the area where it is located because you sometimes end up paying up to 20 per cent more than the market price per square foot in that area without realising it because the selling price of the unit might sound attractive.” Ghura advises buyers research an area they are looking to invest in and to understand the average price per square foot. Sometimes it is worth paying more to have the right layout and size, he says. Source: Gulf News Back to Index

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LIVING IN THE FINANCIAL NERVE CENTRE Wednesday, April 25, 2018 The Dubai International Financial Centre (DIFC) was never meant to be a residential hub, but as in other world cities, it is the residential and entertainment options that inject life into the area. “The central location of DIFC is superb and offers complete work, live, play lifestyle as a sophisticated and established community,” says Lucy Bush, director and head of residential sales and leasing at Cluttons, who has seen the district bloom into a community. Indeed, DIFC has become a hotspot for activities, with sports and arts venues and various events being organised and hosted in the area. “There is a plethora of five-star restaurants and hotels all within walking distance, creating destination dining for residents,” Bush says. One- and two-bedroom units are most in demand at Central Park Towers While primarily catering to residents and workers within the district, DIFC’s amenities have attracted patrons from all over Dubai, says Nemo Stojanovic, head of leasing at Arady Developments, the developer of Central Park Towers. However, Sofia Underabi, partner and head of residential valuations at Cavendish Maxwell, doesn’t see the district developing into a residential hub. Instead, she points out DIFC’s popularity as an entertainment hub, while the limited number of residential options within the district has added to it’s exclusivity. “DIFC is popular with professionals with a preference to live and work in the same central hub, which caters for all needed amenities, including retail and commercial,” says Underabi, noting that its proximity to Downtown Dubai has added to its attraction and convenience. The community also seems to attract a particular demographic. According to Bush, most of Cluttons’ clients there are single executives, couples hunting smaller units or small families that are starting out or empty nesting. “They mostly work in DIFC. The convenience of walking to work or having a base in DIFC is clearly understood with many residents enjoying car-less living,” she explains. In the residential tower of the Central Park Towers complex, the demand was greatest for one- and two-bedroom units, according to Stojanovic. “Although there are families in the building, the majority of the residents are professionals who value the central location and superior amenities,” he explains. Housing The Central Park Towers complex is the newest option on the block. “Central Park Residential Tower is one of the few dedicated towers for residential use in DIFC, offering luxury living space of contemporary design, high-standard finishes and awe-inspiring panoramic views of Dubai,” says Stojanovic. The second tower is dedicated to offices. Most residential options in DIFC also have offices, bar Limestone House and Sky Gardens, which are purely residential. Rents in the area start at around Dh63,000 for a studio. The average rent is around Dh75,000, and prices can go up to at least Dh195,000 or an average price of Dh270,000 for a four-bedroom penthouse. For those looking for more exclusivity, there are the serviced residences at Ritz Carlton, but expect steeper pricing of Dh280,000 for a two-bedroom unit, compared with the Dh225,000 average in the area. “Most of the residential apartments are considered high end and the finishing, as well as the architectural designs, are some of the best in Dubai,” enthuses Bush. Buildings such as Limestone House, Ritz Carlton and The Gate Building have become icons in the Dubai skyline. Limestone House and the Ritz Carlton come in New York stone styling, while Index Tower, Liberty House, Burj Daman and Sky Gardens come in a sleek glass-and-stone look. Damac went for an all-glass façade for its Park Towers, not to be confused with the Central Park Towers by Arady, which has a rather elegant and sharper design.

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While not residential, ICD Brookfield Place by Fosters and Partners will open later this year and is likely to become another favourite destination. “It will offer 18,000 sq ft of public space designed for cultural activities and public art and performances, as well as further grade A office space,” says Bush. The under-construction Gate Avenue would also further enhance the appeal of the scheme, offering two levels of interconnected shopping space, an open-air pedestrian esplanade and a fully air-conditioned concourse. “As per current market intelligence, there are no planned under-construction residential projects in the region that we are aware of,” says Bush. Prices DIFC has seen a general decline in rents, although the rate of decline is less than the overall market. “The increased supply of new developments in surrounding areas, such as City Walk and Downtown, has hindered both prices and rents achievable in DIFC,” says Underabi. Bush concurs that rents have held up quite well, but would not be immune to the corrections seen across Dubai. “There is a good level of rental supply available at the moment, which could indicate an adjustment ahead,” she says. “Developments such as the prestigious World Trade Centre Residence are now becoming accessible at more affordable rental rates, and we currently are marketing a one-bedroom apartment for Dh90,000 per year.” Source: Gulf News Back to Index

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ASK FOR A HIGHER RENT AND LOSE A POTENTIAL TENANT Monday, April 23, 2018 Dubai residents are getting extremely choosy about where they want to move into. It doesn’t matter whether a building has just been delivered, if the landlord’s offered rents do not match market rates, the homes are likely to remain empty. Even “newly handed-over, lower-end buildings in areas with significant supply potential have struggled with occupancy, particularly where rates and incentives were not aligned with the market,” said John Stevens, managing director of Asteco, the property services firm. Highest drop The high-rise Jumeirah Beach Residences neighbourhood has recorded the highest drop since early 2017, by 15 per cent, while Asteco estimates those at the Downtown and Dubai Marina to be down 14 per cent. Even the non-freehold residential hotspots in Deira took a 14 per cent hit over the period. Other areas with “significant decline” are Palm Jumeirah, Business Bay, Greens and Dubai Sports City. An estimated 30,000 new homes (21,500 of these being apartments) are in line for delivery this year, according to Asteco, which is broadly in line with what other consultancies have forecast. But developers will need to get a move on if those numbers are to be met through the rest of the year. Only 3,650 units got delivered in the first three months. In 2017, 13,900 apartments and 3,600 villas made it past the finish line. “Whilst the majority of the recent inventory is located in the new investment areas along the Shaikh Mohammad Bin Zayed Road (E311) and Emirates Road (E611) corridors, communities such as Dubai Marina also recorded additional stock in the form of The Residences at Marina Gate with the completion of the first out of three residential towers,” the report says. On the sales side, the rate of decline in property values did slow down in the first quarter of 2018. Asteco suggests that on average apartment and villa sales prices “softened by around 1 per cent”. “The annual decline for villas (minus 6 per cent) was less pronounced than for apartments (minus 9 per cent),” the report notes. “It should be noted that particularly large villas with high price points generated limited interest, mainly due to the lower investment yields attached to this type of unit.” Source: Gulf News Back to Index

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‘HAPPY CITIES’ IS THEME FOR REALTY EVENT Sunday, April 22, 2018 The Dubai Land Department (DLD) has announced ‘Happy Cities’ as the theme for the 69th FIABCI World Congress 2018 to be held from April 27 to May 2. FIABCI is the French acronym for “Federation Internationale des Administrateurs de Bien-Conselis Immobiliers”, which means “The International Real Estate Federation”. The six-day event to be held at the Dubai World Trade Centre is expected to attract more than 1,500 international real estate experts and delegates from 70 countries. The Dubai Plan 2021 aims to make Dubai the happiest city in the world in celebration of the UAE’s 50th anniversary. Source: Gulf News Back to Index

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DUBAI’S RENTAL DECLINES COOL OFF IN FIRST QUARTER Sunday, April 22, 2018 Residents expecting a further — and immediate — drop in rents need to be patient. The rate of decline in rents seem to be stabilising… at least for the moment. Faisal Durrani“As against the 8 per cent or so year-on-year decline, Q1-18 transactions suggest that this is coming down by 3 per cent or so,” said Faisal Durrani, Head of Research at Cluttons, the consultancy. “There seems to be some stability building up for rents, and the first such quarter in over two years.” According to the report, units in International City and Discovery Gardens are showing the most signs of stable rents, while the upmarket clusters such as the Palm, Dubai Marina and DIFC are down 4.8 per cent from levels same time last year. New supply In the last three years, rents at freehold communities are down by about 18 per cent. But the relative stability could be hit hard by an onrush of new supply — Cluttons reckons that 134,000 new homes (in the freehold space) are to be added between now and end 2020 in a best-case scenario. A significant portion of these would make their way into the rental market. Pressure eases in key freehold locations Even if 20-30 per cent of the forecasted new homes fail to reach completion, it still leaves a sizable number of new homes to fill. Especially when measured against the number of new households that will be set up in Dubai during the period. “Our projections are for 78,000 new households in the next three years - that means there will be far more supply than is actual demand,” said Durrani. “As we know from over the years, people are quite opportunistic to relocate when rents are favourable.” There lies a stark warning for landlords, especially those holding older - and poorly maintained - properties in their portfolio. Get started with the renovations now and they stand a better chance of retaining tenants. “We expect newly completed rental properties to command the attention of tenants, while older and more secondary property will register rent falls,” said Murray Strang, Head of Cluttons Dubai. “This flight to quality phenomenon will likely result in the creation of a very distinctive two-tiered market. In the short- term, we expect rents to slip by up to 5-7 per cent over the remainder of 2018.” Oversupply Oversupply is not just an issue for the rental market. Developers in Dubai did have a slow first quarter in terms of off- plan launches, more so compared to the flood that was there in all of 2017. So, could there be a quiet second-half in 2018? “Nobody is crossing fingers for more offplan at this moment in time,” said Strang. “It’s a dogfight happening at the moment across a wide range of developments because of the glut.”

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The Cluttons report reckons that of the 134,000 new homes, just over a third are priced under Dh800 a square foot. This is where much of the buying is happening.

The consultancy believes that some sort of intervention is required to prevent a glut of new properties coming to market, at more or less the same time. A 50 per cent project completion cut-off before sales could be considered. There was talk early this year that this would indeed become the de factor requirement, but the Land Department recently issued a clarification stating that the current 20 per cent completion cut-off remains. But raising it to 50 per cent would have “Developers — large and small — forced into rethinking their development pipelines,” said Durrani. “We may at last see an abandonment of the ‘build it and they will come mentality’, with the city seeing more measured, modest and appropriate homes brought to the market that actually matches the underlying demand. “If the 50 per cent requirement happens, the pressure on land prices will reduce. High land prices are what’s getting in the way of more affordable priced projects.” Factors Dubai’s property market needs to watch out for • Sharjah Sharjah will continue its freehold momentum, with developer prices 60-70 per cent off from similar projects in Dubai. “These properties and locations appeal to a niche market that will never look at options in Dubai,” said Murray Strang of Cluttons. • Saudi Arabia The other big question revolves around Saudi Arabia’s plans for its real estate sector. “We are hearing of Saudi influence on big commercial operators to relocate to the kingdom or take up real estate there to retain their levels of business,” said Strang. “There will be a knock-on effect on Dubai, even the GCC as a whole. But Dubai will always retain that regional hub status.” Source: Gulf News Back to Index

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NAKHEEL AWARDS DH595M CONTRACT FOR NAD AL SHEBA MALL Sunday, April 22, 2018 Nakheel has awarded a contract of Dh595 million for the Nad Al Sheba Mall, a 1.4 million square foot facility that has a total development value of Dh825 million. Metac General Contracting Co will build the mall, which will have 200 shops, restaurants and entertainment outlets spread across 500,000 square feet of leasable space. It is due for completion in 2021. It will have two supermarkets (Spinneys and Union Co-op). Located just off Shaikh Mohammad Bin Zayed Road, the mall will be a centrepiece within Nad Al Sheba district, with over 11,000 high-end villas. Source: Gulf News Back to Index

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DUBAI SEES 2% JUMP IN VISITORS DURING FIRST QUARTER Wednesday, April 25, 2018 Despite growing currency pressures, Dubai’s tourism authority said that the sector rallied strongly in the first three months of 2018. Figures released on Wednesday showed that Dubai continued to retain and grow its share of visitors from across global markets. Welcoming 4.7 million international overnight tourists from January 2018 to March 2018, the emirate posted a stable 2 per cent increase in traffic versus the same period last year, as reported by Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism). The tourism body said in a statement that leading source markets continued to show their enthusiasm for Dubai, as the top three — India, Saudi Arabia and the UK — retained their positions versus 2017. Recording an impressive 7 per cent year-on-year increase to deliver 617,000 visitors, India helped level out the slightly down second-placed Saudi Arabia (which slipped 1 per cent) and the steeper decline in visitation from third-placed UK (down 8 per cent). In an interview on Tuesday, Dubai Tourism’s chief executive said that he would welcome Indians being granted visa-on- arrival status to the emirate. Asked which countries he would like to see Dubai open up to more, Issam Kazim, CEO, Dubai Tourism, told Gulf News: “India for sure. For sure. That would be the easiest one for me to look at.” Meanwhile, Russia ended the quarter in fourth place, continuing its upward trajectory by topping the growth charts with a stellar 106 per cent increase over the first quarter of 2017, delivering 259,000 tourists, benefiting from availability of visa-on-arrival facilities for Russian citizens from early last year. Similarly, fifth-placed China also continued to leverage its visa-on-arrival status, delivering 258,000 Chinese visitors, up a strong 12 per cent. Posting double-digit increases in most countries, Europe made particularly strong contributions in the first three months of the year, with Germany in seventh place up 13 per cent with 194,000 visitors, France up 17 per cent with 103,000 in 12th place, and 14th-placed Italy up 20 per cent with 80,000. In a record first appearance, Sweden featured among Dubai’s top 20 source markets, delivering 42,000 visitors, up 9 per cent. Helal Saeed Al Merri, director general of Dubai Tourism, said: “The first quarter of the year has yielded stable performance supporting strong growth for all adjacent sectors like hotels and airlines. We expect to build on this strong base of 4.7 million visitors, to accelerate momentum through the summer and beyond — on the back of our strategic investments, partnerships, and policy enablers that are geared to collectively drive strong growth in 2018. Source: Gulf News Back to Index

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SPINNEYS OPENS DOORS TO FIRST SUPERMARKET AT DUBAI AIRPORT Tuesday, April 24, 2018 Imagine this: you arrive at the airport after a long holiday, pass through immigration and, just before you exit, you grab some groceries. Travellers passing through Dubai airport can now shop for just anything, from perfumes, jewellery, electronics – and even items to refill their cupboards. Spinneys, one of the major supermarket chains in the UAE, announced on Tuesday the opening of its supermarket at the terminal 1 of Dubai International Airport. Raising the bar of air-travel experience, the 2,600-square-foot store is situated at the arrivals hall. It promises to deliver everyday staples and fresh food to international travellers, residents and airport employees. It is the 52nd outlet in the region and the first of its kind in the Gulf. It has an in-store bakery, fresh cold and hot deli, fruits and vegetables and fresh, prepared food to go. “We’re delighted to be opening our first landslide store in Dubai International Airport,” said Matt Frost, CEO of Spinneys. The company said the “community-led” supermarket is going to elevate the travel experience for consumers. So far, the new venture has created 26 new jobs for the local community. “The opening is the first in the aggressive growth plan outlined at the end of 2017 for the brand,” the company said. The grocery operator is expecting to achieve a 40 per cent growth by 2020 by focusing on expansion, as well as continued innovation and digital product development. Source: Gulf News Back to Index

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DAMAC TARGETS TO OPERATE 15,000 HOTEL ROOMS BY 2021 Tuesday, April 24, 2018 Damac Hotels & Resorts, the hospitality arm of Damac, is looking to boost its current portfolio of around 1,700 hotel units over the next 3 years, with the aim of delivering 15,000 units by 2021. Speaking at the Arabian Travel Market, Damac chairman Hussain Sajwani said: "Over the past 4 years, Damac has delivered 1,700 hotel units that are in operation currently, and we're looking to increase that to over 5,500 rooms by year end. With Expo 2020 just around the corner, there is much expected from Dubai's hospitality sector, and this global destination is all set to welcome over 20 million visitors in the coming years. The goal of delivering 15,000 keys by 2021 is a task that is both challenging and thrilling." Jean Faivre, senior vice-president - hospitality, Damac Hotels & Resorts, said: "Damac has already set new trends with the Damac Maison and Damac Maison Royale brands. With room occupancy topping 29 million room nights last year and at 78 per cent occupancy rate, we anticipate a lot more hospitality units will be needed to cope with the influx of tourists over the coming years." Damac Hotels & Resorts has 2 brands, Damac Maison Royale and Damac Maison. The current operational projects are located in and around Downtown Dubai and Business Bay, with other property openings planned in key areas of the city. Source: Khaleej Times Back to Index

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IT'S TIME TO BARGAIN HARD WITH YOUR DUBAI LANDLORD Monday, April 23, 2018 Apartments and villas in Dubai have seen an average annual rental decline of approximately 10 per cent in the first quarter of 2018, says real estate consultancy Asteco. This is forcing landlords, especially in areas with a significant supply pipeline, to offer sweeteners such as multiple cheques, rent-free periods and even absorb utility, maintenance and/or agent fees. According to Asteco, some of Dubai's popular communities have witnessed the sharpest decline in rents. These include Jumeirah Beach Residence recording a 15 per cent drop since 2017, while Downtown Dubai, Dubai Marina and Deira come in a close second with a 14 per cent decrease. Other areas that have demonstrated a significant decline in rents are the Palm Jumeirah, Business Bay, The Greens and Dubai Sports City, among others. Villa rents in Jumeirah Village and Jumeirah Park have seen a decrease of 15 per cent and 13 per cent respectively, while Arabian Ranches, Palm Jumeirah and The Springs are also cheaper to rent today compared to 2017. John Stevens, managing director of Asteco, said: "While on the whole, the residential sector has witnessed only a minimal decline of 1 per cent quarter on quarter, it is important to note that newly handed-over, lower-end buildings in areas with significant supply potential have struggled with occupancy, particularly where rates and incentives were not aligned with the market." Asteco estimates that approximately 3,625 residential units were handed over in Q1 2018, with a total of 30,000 potentially to be delivered by Q4 2018. Most of the recent inventory is located in the new investment areas along Sheikh Mohammed Bin Zayed Road and Emirates Road corridors. Among the established communities, Dubai Marina also recorded additional supply with the completion of the first of 3 residential towers at The Residences at Marina Gate. "It is important to note that predictions that the market is set to be flooded with more than 120,000 new properties ahead of Expo 2020 should be calmed by the likelihood that not all will be finished on schedule. This means any disturbance to the sector is unlikely to be felt for some time yet, so now is a good time for first-time buyers/investors to take their first steps on the property ladder," observed Joanne Phillips, general manager of the mortgage division at Holborn Assets, a financial services firm. How sales market fared Villa and apartment sales in Dubai registered an annual decline of 6 per cent and 9 per cent respectively, with large villas at high price points generating limited interest, mainly due to the lower investment yields associated with this type of product. There is considerable interest in affordable housing options, with many banks and developers stipulating a minimum monthly salary of Dh15,000 in order to purchase property in the emirate. Reidin's operations and research director Ozan Demir said: "Last year, the real estate sales market was dominated by off-plan sales. However, this year sales activity in the secondary market is gaining momentum. This trend is expected to continue. Affordable housing has become the prime choice as it offers a healthy anticipated return on investment thanks to the growing demand from tenants and the population of the UAE." The dip in prices over the last 18 months has made the Dubai market more accessible and the continuing lack of taxes, specifically related to capital gains, property appreciation, salaries and rental yields, means there is potential for strong returns on your investment.

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Joanne continued: "We are expecting property in some areas of Dubai to perform particularly well, such as Jumeirah Village Circle and Dubai South. These recorded the highest number of off-plan transactions last year and combine growth potential with solid returns. Other neighbourhoods to pay close attention to include Discovery Gardens, International City, Jebel Ali and Dubai Creek Harbour. Very recently, there has also been a surge in interest in Sustainable City and Sports City areas as buyers are willing to look further outside the city to get more for their money." Source: Khaleej Times Back to Index

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REDEEM AIR MILES TOWARDS BUYING YOUR HOME Tuesday, April 24, 2018 MAG Lifestyle Development (MAG LD) - the development arm of the MAG Group - has entered a strategic agreement with Etihad Guest, the loyalty programme of Etihad Airways, to provide Etihad Guest members with an exclusive 5 per cent discount on the purchase of units at MAG 318, MAG 5, MAG EYE and MBL Residence, as well as the opportunity to redeem their air miles towards the purchase. Customers purchasing a property with MAG will receive a minimum of 1 Etihad Guest Mile for every Dh5 spent. The offers are available until April 30, 2020, for all members of Etihad Guest's programme. Talal Moafaq Al Gaddah, CEO of MAG LD, said: "Our MAG Alliances division was established to provide a wider audience of buyers with exclusive opportunities to discover a new lifestyle with MAG. Beyond a 5 per cent discount, they will also have a chance to use their Etihad Guest miles to help them in their property purchase." Yasser Al Yousuf, managing director of Etihad Guest, said: "We can now provide our members real benefits when it comes to purchasing property in the UAE." MAG Alliances has already created other partnerships with top GCC organisations across the aviation, banking, healthcare and education sectors, and is also forming agreements with government entities. The company aims to roll out MAG Alliances across Asia, Europe and the US. Source: Khaleej Times Back to Index

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NEW MORTGAGE LAW TO BOOST FUNDING FOR DUBAI REAL ESTATE Sunday, April 22, 2018 The Dubai Land Department (DLD) has proposed a new mortgage and finance law to bring in more capital to the real estate market. The main objective of the mortgage law is to attract foreign investors and public joint stock companies listed on Nasdaq. The law also aims to encourage alternative financing methods and cater to investors with small and medium- sized portfolios. "A lot of non-residents are looking to buy property in the UAE and they are looking to get a higher proportion of financing as well. Currently, banks are only offering a loan-to-value ratio of 60 to 65 per cent on ready property for non- resident investors. Banks are hesitant to lend to them owing to the higher degree of risk involved. Certain banks are willing to offer 50 per cent LTV for non-residents based on bank statements and passport copies. The documentation is also complicated as they need to fly down to Dubai to do all the paperwork and transfer," says Carol Monis, head of mortgages, MortgageMe, a financial consultancy. The proposed mortgage law will attempt to make it easier for specialised funds to come into the Dubai real estate market. Bringing in more real estate investment trusts (Reits) is being touted as one of the alternatives. According to Core Savills, Reits account for almost 5 per cent of the UAE's listed real estate, compared to more than 40 per cent in countries such as the UK and Singapore. "This new regulation is expected to further integrate the real estate market with capital markets. These Reits and alternate financing avenues will support the expansion of funding channels available to developers, while also allowing higher exposure to foreign investment funds to Dubai's real estate market and providing investors [individual/retail] liquid, diversified and smaller ticket size investment instruments," explains David Godchaux, Group chief executive officer of Core Savills. The lower to mid-income residents in Dubai are also keen to buy property to get out of the rental trap. However, the initial upfront costs to purchase a home are prohibitive. "This involves a 25 per cent deposit for a ready property, 4 per cent transfer fee, 2 per cent broker fee, 1 per cent bank processing fee, 0.25 per cent mortgage registration fee, Dh4,000 trustee fee, and more. In short, they would have to arrange for at least 32 per cent of the property's value as initial costs. This should be relaxed," suggests Monis. Market stakeholders have been calling to ease mortgage regulations to boost the sector. "However, it may also instigate more short-term/speculative investors versus end-user buyers, that the market needs, more especially in the affordable and lower mid-market segments. Regulations allowing to distinguish between end- users and investors would be welcome to absorb the upcoming supply and work for the short term while having a positive long-term impact as well," concludes Godchaux. Source: Khaleej Times Back to Index

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DUBAI HOUSE RENTS MAY FALL MORE IN THESE AREAS... Monday, April 23, 2018 Residential rents across Dubai registered no change during Q1 2018, according to property consultancy Cluttons. This helped to improve the annual rate of change to -3.1 per cent from -7.7 per cent at the end of last year. This marks the first stable quarter for rents in Dubai over the last 2 years. On an annual basis, the worst performing segment of the rental market was high-end apartments in Downtown Dubai, Dubai Marina, Palm Jumeirah and the DIFC, where rents are down 4.8 per cent on this time last year. The Dubai rental market is most likely to see a flight to quality and become 2-tiered, once new supply starts getting delivered in the next 3 years. "The growing volume of off-plan investment stock destined to be made available for rent after handover is likely to pose challenges in the future, particularly if all delivery timelines are met. The ability of the rental market to absorb a high volume of new stock will likely be tested over the next 3 years. Newly completed rental properties will command the attention of tenants while older and tired secondary properties will register rent falls," says a Cluttons report on Sunday. The consultancy estimates that rents in Dubai will slip by up to 5 to 7 per cent during 2018, with similar declines in 2019 as rate of handovers gain pace. Majority of sales appear to be taking place among international investors, who are likely to return the units to the sales market prior to completion or attempt to rent them out after handover. For those unable to sell their off-plan purchase for a profit on completion, renting out units is likely to be an attractive option, which will add to the downward pressures in the rental market. There is a distinct lack of new supply in more affordable areas such as International City and Discovery Gardens and therefore rents are likely to remain stable in these communities. According to Cluttons, Dubailand (6,400 units) is likely to see the largest number of apartment completions this year, followed by Jumeirah Village (5,400 units) and Dubai South (3,000 units). Cluttons forecasts that some 51,000 units are expected to be delivered this year, 53,500 in 2019 and 29,400 in 2020. This translates into about 134,000 unit deliveries between now and the end of 2020. Over the same period, the city's population growth should result in the addition of 77,500 households, as per Cluttons' calculations. "It is likely that there will be some 20 to 30 per cent deliveries being delayed. Still, the growing mismatch between supply and demand will act as a strong drag on the market," the report adds. "Of the 134,000 homes in the city's supply pipeline, circa 42 per cent are priced over Dh1,200 psf, while approximately 35 per cent are priced under Dh800 psf, which is where the majority of demand lies. Inevitably, should the planned supply be delivered according to the announced timelines, there is likely to be an oversupply of luxury homes, which will result in further corrections at the top end of the market. Furthermore, with just 77,500 new households likely to be created over the next 3 years, most will be low-middle income households and many will opt to rent, instead of purchase, due to the transient nature of many residents," says Faisal Durrani, head of research, Cluttons. "At this point of time there is considerable supply of off-plan, mid-market homes under the Dh1,800 psf mark, causing intense competition among buyers, and as a result, it is becoming evident demand for high-end product priced above Dh1,000 psf is waning. The same could be said for completed stock available for rent - tenants are seeing better value for money and greater levels of availability in the mid-market, rather than high-end price bands, and are either

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negotiating better rents with current landlords or moving to newly handed over developments with mid-range pricing and a strong focus on community and central amenities," explains Murray Strang, head of Dubai at Cluttons.

Sales market The Cluttons report points out that homes priced above Dh2,000 per sqft are seeing a persistent deterioration in values while those priced below Dh1,000 psf remain virtually unchanged, as has been the case for apartments in sub-markets such as International City, Discovery Gardens, IMPZ and Motor City. "The affordability issues gripping the residential market in Dubai continue to be overshadowed by developers' desire to retain asset books that are full of iconic, luxurious schemes. This focus on high-end homes has meant that the market risks seeing an oversupply of high-end homes, while low to middle income households in the city aspiring to purchase continue to be sidelined," observes Durrani. On an annual basis to the end of March 2018, across Dubai's residential investment areas, prices fell by Dh94 psf, driving average prices to 33.9 per cent below their Q3 2008 peak. The Burj Khalifa remains the city's weakest performer, with values falling by 11 per cent over the last 12 months, leaving them 72.3 per cent lower than the last market high in 2008. Although more affordable areas such as International City and Discovery Gardens stand out as bastions of stability in the face of headwinds for the market, values in these areas are some 30 to 40 per cent lower than they were in Q3 2008. Price sensitivity among buyers will continue to shore up performance of more affordable locations while the top of the market will likely continue to see values ebbing over the next 12 months, according to Cluttons. Values may slip by up to 5 to 7 per cent this year. This trend may persist into 2019, catalysed by the supply pipeline before there is potential for stability in 2020 once the supply pipeline starts to diminish. Source: Khaleej Times Back to Index

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HOMEFRONT: 'MY TENANT IS THREATENING COURT OVER A RENTAL DEPOSIT?' Wednesday, April 25, 2018 My tenant moved out five months ago and refuses to pick up his deposit cheque. I deducted Dh1,500 from the original Dh8,000 security deposit for the following items: 1. Giant holes left in the walls from the removal of curtain rails etc 2. A towel rack that was taken by the tenant 3. Palm tree in the garden that was not sufficiently watered and died during the tenancy 4. Initial rental cheque bounced which entails a Dh500 penalty as mentioned in our rental agreement. 5. Tenant failed to vacate the property on the day the agreement ended and required an additional day to move out. I have now moved into the house myself and repaired the holes left behind by the tenant. However, he is threatening to take me to court and says I will have to pay their legal feels. Do I have something to worry about? The initial cheque I wrote to return the deposit may expire after six months if not cashed. Is there anything I should be doing to protect myself? AR, Dubai A landlord is perfectly within his or her rights to deduct monies from the tenant's security deposit to have their property returned in the same condition it was given. In your case it would be more helpful if there is was an agreement to any deductions between the parties. It is clear that your tenant does not agree with your deductions but do not panic. For any work you had to do to the property to replace or renew, please keep the receipts and proof of costs. This way you can justify your deductions. With reference to the tenant taking you to court, again I would not be too concerned because you have not done anything that could be deemed unreasonable. Assuming the property was in good condition, clean and tidy at the start of the tenancy then it is only fair that it is returned in the same manner. If the tenant does take it further and you are called upon by the authorities to justify yourself, stand your ground and show your evidence (receipts, photos etc.) Cheques do have a validity of six months, so if your cheque has now expired, you can always write a new one, once all has been sorted. Last year, my landlord did not want to renew the tenancy. I went to the Rental Dispute Settlement Centre and deposited the cheques there. My lease started on April 1 2017 and on April 31 I received a notice stating the landlord is asking me to leave maximum by May 1 2018 because he landlord wants to sell as the buyer wishes to view a vacant apartment. However, I know that they just want to get me out of the apartment. A buyer would like to come and see the place before buying, but no one has come so far. Do I have to vacate or do I have a chance if I revisit the RDSC? AB, Dubai A landlord is perfectly entitled to send an eviction notice via notary public or registered mail for the reason of selling. I do know that in the past some judges at the RDSC have asked the eventual buyer to re-issue another 12 months notice to the tenant, should the same buyer indeed wish to move into the property themselves. That said, the law is not set on precedent so I cannot guarantee exactly what the judges would agree upon in your case. If 12 months have expired since your landlord issued you with the notice but no buyer has been found, it is possible a judge might allow you to stay on until the property is indeed sold.

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Remember that there is a charge of 3.5 per cent of the rental amount to open a case at the RDSC.

Given the current challenging market, I think it would be better to speak with the landlord and try to sort things out rather than just proceeding to file a case at the RDSC. Perhaps you can tell the landlord that if a buyer is found, you could be persuaded to move out at a later stage. If the landlord knows you are willing to work with him, this will create a better relationship going forward. Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for 34 years in London and Dubai. Source: The National Back to Index

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DUBAI RENTS Q1, 2018: ALL YOU NEED TO KNOW Wednesday, April 25, 2018 What was the general market movement? It was a generally stable start to the year for the Dubai renting market, although brokers are seeing fragmentation, which, according to Asteco, is widening the rental ranges "considerably". Average residential rents fell 1 per cent quarter on quarter, but rates are down by double digits in many areas year-on- year, as they have been in Abu Dhabi. Lower-end buildings in areas with significant supply potential have struggled to find tenants, particularly where rates and incentives were not aligned with the market. In an effort to encourage tenants, landlords have been using incentives such as multiple cheques, rent-free periods, or absorbing agency fees and utility bills. The fall in rents during the past couple of years has come amid lower oil prices and slower economic growth, which has seen companies trim benefits and allowances on offer to employees. “Housing allowances for many expats are being realigned in line with changing business activity and hence their appetite for higher ticket properties remains low," Manika Dhama, senior consultant at Cavendish Maxwell, said earlier this month. Which new developments opened? A total of 3,650 properties were handed over in the first quarter, Asteco said. Of these, 625 were villas. This came on the back of 17,500 new units last year. Most of the new developments are located in the investment areas along Sheikh Mohammed bin Zayed Road (E311), Emirates Road (E611). Meanwhile, the first of three towers at The Residences at Marina Gate in Dubai Marina opened. What is the expected supply for the remainder of the year? Approximately 30,000 units are meant to be delivered in 2018, but only 12 per cent came to the market in the first three months of the year. Apartments are set to provide the bulk of the new builds, providing 21,000 units, with another 5,000 villas to come. Some of Dubai’s most popular communities have witnessed the sharpest decline in rents. These include Jumeirah Beach Residence and Jumeirah Village, which both recorded a 15 per cent drop year-on-year, while Downtown Dubai, Dubai Marina and Deira all fell 14 per cent. Other areas that have become more affordable are Palm Jumeirah, Business Bay, Greens and Dubai Sports City. For those who feel they are paying too much rent to live in Dubai, the rates are far cheaper than they were a decade ago. Source: The National Back to Index

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KLEINDIENST GROUP SEEKS APPROVAL FOR DH2.5BN ‘FLOATING VENICE’ RESORT IN DUBAI Sunday, April 22, 2018 Austrian property developer Kleindienst Group is awaiting approval from the Dubai Government to build a Dh2.5 billion "Floating Venice" resort in the Arabian Gulf, as it reaches 50 per cent of sales of its luxury villas called "Floating Seahorses" at The World Islands, the group’s founder said. “We aim to complete Floating Venice prior to Expo 2020 Dubai, but there are lessons to learn,” Josef Kleindienst, chairman of Kleindienst Group, told The National at Cityscape Abu Dhabi last week. “We are the first to build [something like this] and we need to get it right. I can’t build something that’s not excellent,” he said. Kleindienst Group is building a cluster of six islands at the manmade archipelago 4 kilometres off the coast of Dubai, as part of its Heart of Europe masterplan. This year it expects to hand over three islands – Sweden, Germany and St Petersburg with an investment value of Dh15bn – and the others in 2019 and 2020. The company said last September it would build the world’s first underwater luxury resort at The World, modelled on Italy’s canal-strewn city Venice. The Floating Venice resort will feature 12 hotels, restaurants and leisure facilities split over four decks, one of which will be underwater. The developer said it would start construction in the first quarter of 2018, but Mr Kleindienst told The National the company is awaiting planning approval from the Dubai Government. “This is a project the likes of which has never been done before in the UAE so it is taking some time,” Mr Kleindienst said, and noted that 112 no-objection certificates have been secured to progress other components of The World Islands masterplan unveiled in 2003. “It’s much more complex to build on these islands than anywhere else.” There has previously been some confusion – particularly around the group’s Floating Seahorse villas, which are marketed as the world’s “first luxury underwater living experience” – over which authority is responsible for Kleindienst’s marine-focused developments. In the meantime, it is pressing ahead with factory construction of a ‘test-section’ of the Venice structure to prove it floats, and hopes to assemble this in situ by the end of 2018. It is also in talks with around 10 European hotel operators. Separately, Kleindienst is progressing sales of Floating Seahorses, which were launched at the Dubai Boat Show in 2015. The average sales price has gone up from Dh5m to Dh15m, which demonstrates high demand for the unusual product, Mr Kleindienst said. The developer included just 42 of the 4,000 sq ft marine villas in its original masterplan but has since increased this to 131. The first two phases totalling 40 Seahorses have been handed over. Demand is coming from wealthy second-home seekers, including a man who bought one for his wife to celebrate their daughter’s coming-of-age sixteenth birthday, Mr Kleindienst said. “In the second-homes market we are the only supplier at present – we can’t even supply 10 per cent of UAE demand,” he said.

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Some 40 per cent of buyers are from Saudi Arabia, 28 per cent are from the UAE, 12 per cent are from elsewhere in the Arab world, 13 per cent are from Asia and 7 per cent from South America, the firm said.

Kleindienst Group has financial capacity to build 33 per cent of its World Islands masterplan, and the rest is to be funded through off-plan sales. The company has no debt, its chairman said. Source: The National Back to Index

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$27M SALES SEEN AT DUBAI'S FIRST BANYAN TREE RESIDENCES PROJECT Thursday, April 26, 2018 UAE developer Sweid & Sweid has announced that it has sold over AED100 million ($27 million) of the Middle East’s first Banyan Tree Residences during the first month of sales. Due for handover in the third quarter of 2019, the tower will become Dubai’s first urban residential resort. Located on a 110,000 square foot site, the developer said 90 percent of the area has been dedicated to resort-style amenities and lush landscaping - with the remaining 10 percent for the tower footprint. The property’s amenities feature a clubhouse including a Banyan Tree Spa, a fitness centre with saunas and squash court, an indoor children’s play area, and a poolside cafe. “The Banyan Tree Residences promises to be one of the most prestigious addresses in Dubai. Having all the leisure facilities and amenities in a setting that provides residents with rarely-found abundant green space, we are confident that tremendous value will be created for buyers and investors for the years to come,” said managing partner Maher Sweid. The stand-alone tower’s 244 residences are located at the intersection of DMCC, Emirates Hills, Emirates Golf Course, and the Montgomerie Golf Course. Prices start from AED1.49 million for a one-bedroom, AED2.3 million for a two-bedroom, and AED3.9 million for a three- bedroom unit. “We’re seeing a lot of demand for larger units – especially the duplex apartments, which offer private gardens and double-storey living rooms, a unique aspect of the project,” added Sweid. Source: Arabian Business Back to Index

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DUBAI SOUTH LAUNCHES INITIATIVES TO SPUR PRIVATE SECTOR INVESTMENT Tuesday, April 24, 2018 Dubai South has announced the launch of a number of initiatives that aim to attract investment and provide incentives to the private sector in sectors including aviation and 3D printing. The initiatives follows directives of Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to stimulate economic growth and reduce the cost of doing business, state news agency WAM reported on Tuesday. Dubai South revealed that its first initiative is to form a centre for private aircraft registration. It will work with the General Civil Aviation Authority to simplify both private aircraft registration and the transfer of ownership of private aircraft. It will also exempt private planes from landing permit fees and will ease the entry procedures for private plane passengers, which will help promote Dubai as a world-class centre for the private aircraft sector, WAM added. Dubai South has also announced initiatives to reduce registration fees for companies that specialise in the manufacture and maintenance of airplane parts, in addition to building a regional manufacturing and maintenance centre. It will also reduce registration fees for companies that specialise in manufacturing using 3D printing and will build special facilities for this industry, which helps to implement the emirate’s strategy of promoting its status as a global leader in 3D printing by 2030. Dubai South also indicated that it will develop an integrated area for the e-commerce and logistics sectors, which will help promote Dubai’s position as a global e-commerce hub in light of the expectations that the e-commerce market will be valued at $20 billion in the GCC by 2020. Its initiatives included cutting costs for companies and launching plans such as the ability to acquire combined licences issued by the Department of Economic Development and the Dubai South Free Zone, which contributes to decreasing the cost of these licences for companies by 50 percent. Under the new initiatives, Dubai South companies will be able to scale down their business and move from offices to business centres or from warehouses to office facilities at different sizes and at competitive prices. Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai Civil Aviation Authority and chief executive of Emirates Group, said that the aviation sector is considered one of the leading sectors in Dubai’s economy and that Dubai South has launched these initiatives in order to attract investments from this sector. Source: Arabian Business Back to Index

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DEVELOPER BEGINS HANDOVER OF DUBAI MARINA PROJECT HOMES Thursday, April 26, 2018 Select Group, one of the largest private developers in the GCC, has begun handover of The Residences at Marina Gate I in Dubai Marina to owners. Featuring 399 residential units, the residential development includes studios, one, two, three and four-bedroom apartments, four-bedroom penthouses, and duplex podium villas. Marina Gate I also offers a host of amenities to its residents including an infinity edge pool, gymnasium, squash and paddle tennis courts, children’s pool and play area, outdoor gym, and 24-hours concierge service. Rahail Aslam, CEO Select Group, said: “The Residences at Marina Gate I is a unique offering for buyers. Translating luxury on a grand scale, the building’s design, build quality, efficient floor plans and luxurious amenities are ideal for experiencing the pulse of Marina living on the waterfront.” Marina Gate I features a retail colonnade at ground, mezzanine and podium levels, he said, adding that King’s College Hospital London – Medical Centre, Bin Sina Pharmacy, The Coffee Club, and The Nail Spa are some of the brands that are set to start operations at Marina Gate I shortly. “Marina Gate has raised the bar for developments in Dubai Marina.” said Rahail. “We are committed to ensuring the highest standards for our customers and timely delivery of projects without compromising on quality.” The remaining two towers within the development are progressing on schedule. Cladding works are ongoing for the topped-out Marina Gate II and handover is scheduled for early next year. The third and final tower in the development, Jumeirah Living Marina Gate, which will be managed by Jumeirah Group under their Jumeirah Living brand, is also at an advanced stage of construction. Source: Arabian Business Back to Index

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UAE'S AZIZI AWARDS $120M DEALS FOR DUBAI HEALTHCARE CITY PROJECTS Wednesday, April 25, 2018 UAE-based Azizi Developments said on Wednesday it has awarded two contracts worth AED440 million ($120 million) for the development of two buildings in Dubai Healthcare City. Zahrat Al Safa Contracting has been appointed to construct the buildings in Dubai Healthcare City, with each contract valued at AED220 million. Fawad Azizi will have a total of 396 units, including 201 studios, 165 one-bedroom apartments and 30 two-bedroom apartments and Jawad Azizi will have 383 total units, including 216 studios, 137 one-bedroom apartments and 30 two- bedroom apartments. Mirwais Azizi, chairman of Azizi Group, said: “Azizi Developments is committed to establishing communities and delivering premier real estate projects in Dubai.” Other projects by Azizi Developments in DHCC include Azizi Aliyah Residences and Farhad Azizi. Azizi Aliyah Residences is a AED470 million project that will offer a total of 346 fully serviced residences with 191 studios, 135 one-bedroom apartments and 20 two-bedroom apartments, along with upscale retail space of 16,000 sq ft. Farhad Azizi will have a total of 634 units, including 396 studios, 218 one-bedroom apartments and 20 two-bedroom apartments. Source: Arabian Business Back to Index

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DUBAI SCHOOL FEES DROPPED BY 15% IN PAST YEAR Wednesday, April 25, 2018 School fees are most expensive in Nad Al Sheba, Jumeirah Village Circle and Al Sufouh, according to new data from Edarabia and Bayut.com. In a report on Dubai school fees versus rent in Dubai, Edarabia found that the average fees in Dubai’s most expensive area totalled AED 65,152 for all year groups. The lowest school fees were found to be in Deira, Al Qusais, Muhaisnah and Al Karama, with the fees in these areas averaging AED 12,761 per year. The report found that while most school fees have been updated over the course of the last year, some areas of Dubai experienced reductions of as much as 10 to 15 percent. Additionally, the report – which covered 24 areas of the emirate – also found that the most expensive neighbourhoods in which to live are located in Dubai Marina, Palm Jumeirah and Al Sufouh. The most affordable areas were found to be Al Qusais, Al Quoz and Downtown Jebel Ali. The Q1 report suggests that the lowest apartment rents were found to be in the new, “suburban” neighbourhoods of Dubai, including JVC, Sports City, Dubai Investment Park and IMPZ. JVC was also be found to be home to the most affordable villas, trailing only behind Mirdif and Dubai Sports City. Conversely, the most expensive neighbourhoods for apartments and villas were found to be in older, more central areas, such as Al Sufouh, Jumeirah, Nad Al Sheba, Palm Jumeirah and Umm Suqeim. Notably, rents were found to be falling in many of the areas with the most expensive school fees, such as Nad Al Sheba, The Springs, The Meadows and JVC. In Nad Al Sheba, for example, the average rent for a four-bedroom villas was found to have decreased by 15.7 percent, while the cost of a three-bed villa fell 20.7 percent. Rents were found to have remained stable in areas where school fees were the lowest. In Al Karama, for example, the average cost of a two-bed apartment remained at AED 95,101. Source: Arabian Business Back to Index

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ABU DHABI RENTS DECLINE AGAIN IN Q1 BUT SOME UNITS BUCK THE TREND Wednesday, April 25, 2018 Residential rents in Abu Dhabi dropped by as much as 22 per cent in the first quarter of 2018, although there were some exceptions, according to property portal Bayut. “The Abu Dhabi property market heavily favoured renters and buyers in the first quarter,” Bayut said in a soon to be published report. The UAE property market has declined steadily in the past two years following a three-year slump in oil prices but the market is expected to bottom out later this year before starting to recover in 2019, experts say. Both apartments and villas across most neighbourhoods in Abu Dhabi saw rental and sales prices decrease compared with the same period in 2017, Bayut said. The biggest rental drop was recorded in Hydra Village on Al Reem Island, where 3-bedroom villa prices fell by 22.7 per cent and were being offered for an average price of Dh85,000 a year. Two-bedroom apartments in Al Reem registered the second-largest drop, of 16 per cent, according to Bayut. Rents for four-bedroom villas in Khalifa City fell by 8.5 per cent, while five-bedroom villas in Al Raha Gardens declined by 8.2 per cent. For villas, categories that bucked the trend were three-and five-bedroom villas in Mohammed bin Zayed City, which registered increases of 9 per cent and 3 per cent, respectively, and three-bedroom villas in Al Mushrif, which rose by 2.8 per cent. For apartments, the only category that had an increase was the studio market in the Corniche, where prices increased by 7 per cent. “Price decreases in the rental sector will allow tenants to upgrade to larger spaces, move to a new district, or, take the plunge into property ownership, with softening prices making it a more affordable option,” the report said. In the first three months of 2018, studio sales prices in Al Reef plummeted by 20 per cent, and two-bedroom apartments in Yas Island fell by 16.3 per cent. There was, however, an increase of 0.3 per cent for 3-bed villas on Yas Island, and the outlying district of Al Ghadeer, where prices for two-bedroom villas rose by 9 per cent. Al Ghadeer, close to Dubai's eastern border, is being extended by landowner Aldar Properties, Abu Dhabi’s biggest listed property firm. It unveiled a Dh10 billion master-plan to transform the neighbourhood into a 3 million square metre mixed-use scheme called Al Ghadeer over the next 10 years. Source: The National Back to Index

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ABU DHABI RENTS IN Q1, 2018: ALL YOU NEED TO KNOW Tuesday, April 24, 2018 What was the general market movement? After housing rents fell by up to 10 per cent in some areas of Abu Dhabi in 2017, property consultants predicted that they would continue to drop throughout this year, albeit at a lesser rate as oil prices stabilised and government spending ramped up. However, according to a new report by Asteco, apartment and villa rates decreased on average 3 per cent and 2 per cent, respectively, in Q1, marking an annual year-on-year fall of 11 per cent and 9 per cent. The report said the ongoing decline in rents was due to the continuous delivery of new supply "during a period of restrained economic growth and subdued market sentiment". It noted that vacancy rates increased across all residential unit types. Which new developments opened? For residents in the capital, there are plenty of shiny new buildings to choose from spread across the city. About 1,600 units were delivered to the market in Q1, including Ansam on Yas Island, Al Hadeel at Al Raha Beach and Muhaimat Tower on Reem Island. New project announcements in recent months included the Al Fahid Island Master Development by Al Nahda Investment, and the Reflection Towers scheme on Reem Island by Aldar. Furthermore, the Saadiyat Grove development, in the heart of the cultural district on Abu Dhabi's Saadiyat Island, by Aldar and Emaar, was unveiled amid the developers' strategic tie-up. What is the expected supply for the remainder of the year? As with the past couple of years, projects earmarked for handover may well not make it to the market just yet. Asteco says that 7,300 units are lined up for completion before the end of the year but "previous delivery patterns suggest a number of these are likely to be delayed and will spill over into 2019". The supply is expected to come from Reem Island (2,500 units), Yas and Saadiyat Island (1,800 units) and more than 1,650 units on the mainland. Last year, 3,000 apartments and 750 villas were completed. For house hunters, apartment rents at the upper end of the market on Reem Island have tumbled the most, according to the data, with a fall of 17 per cent year-on-year in the Shams area, and 14 per cent at Marina Square. For those preferring a villa, rents at Saadiyat Beach Residences are down 10 per cent year on year, and 11 per cent at Al Raha Gardens. Tenants will also find that some landlords are now willing to rent out their properties for 12 monthly payments, rather than the typical one or two. The National understands that an entire tower on Reem Island will be rented out for 12 monthly payments when it is released in the next couple of months. Source: The National Back to Index

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SHARJAH INT'L SEES 5% PASSENGER GROWTH, PLANS $410M EXPANSION Wednesday, April 25, 2018 Sharjah International Airport was used by 2.88 million passengers during the first quarter of 2018, marking a 5.1 percent increase year-on-year. This brings the average monthly traffic in the quarter to over 960,000 passengers, up from 913,000 passengers in the same quarter of 2017, state news agency WAM reported. During the period from early January to the end of March 2018, the number of scheduled and non-scheduled flights increased by 4.69 percent to 19,441 flights, compared to 18,569 flights in the same period last year. The volume of cargo handled during the same period was 42,987 tonnes. The figures come as more details have been revealed about a AED1.5 billion ($410 million) expansion plan at Sharjah International Airport. These include the expansion of the passenger terminal over the next four years, which will increase the capacity of Sharjah International Airport to 20 million passengers by 2027. The expansion will also include using modern facilities such as smart gateways facilitating fast passenger movement and considerably shortening processing time. The expansion will be completed in several phases and will feature several projects, the most important of which will be the expansion of the local road network serving the airport. Source: Arabian Business Back to Index

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ROVE HOTELS REVEALS PLAN FOR EXPANSION IN RAS AL KHAIMAH Wednesday, April 25, 2018 Rove Hotels, the midscale hotel brand, has strengthened its operations in Ras Al Khaimah, with a management agreement to operate the Rove Manar Mall. A joint venture between Emaar Properties and Meraas, Rove Hotels signed the agreement with Al Hamra, the developer of Manar Mall for the 250-room hotel. Construction work will start this year with the hotel scheduled to open in 2020, a statement said. Olivier Harnisch, CEO of Emaar Hospitality Group, said: “We are thankful to the Ras Al Khaimah government and Al Hamra for their trust in us in contributing to the emirate’s hospitality sector. The young Rovers of Ras Al Khaimah will have a destination that truly meets their aspirations in Rove Manar Mall.” Rove Manar Mall will also offer a 24-hour boutique convenience store, outdoor pool, sundecks, a 24-hour gym, 24-hour self-service laundromat, luggage store rooms, safety deposit boxes, sofa beds for extra guests, and mini-fridge. It will also feature The Daily, an all-day restaurant and the Rove Pit Stop. Rove Hotels has five operational hotels in key locations in Dubai – Rove Downtown, Rove City Centre, Rove Healthcare City, Rove Trade Centre and Rove Dubai Marina. Several Rove Hotels are being planned in Dubai and other locations in the UAE as well as in Saudi Arabia. Source: Arabian Business Back to Index

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SWINGING UK INVESTOR INTEREST IN OFFPLAN’S DIRECTION Wednesday, April 25, 2018 It is a timeless question that will have both sides of investors jumping to defend their preferences. Old and new properties both have distinct, unique advantages; on the one hand, some believe that existing stock tends to hold its value better compared to its newer, more polished counterparts. On the other, many investors are attracted by the low-maintenance and potential off-plan growth potential offered by new property. One of the biggest advantages of investing in newbuild is the ability to buy off-plan, before the property is built and often from just CGIs (computer-generated images) and a development model. While this carries its own set of risks, the biggest benefit is that you can effectively buy tomorrow’s property at today’s price, which can be lucrative if you choose wisely. In growth areas where prices are yet to peak — such as Brighton, a coastal city outside of London where we are currently developing — investors can secure a relative bargain before the build completes. This pendulum can swing both ways, but if one conducts in-depth research and due diligence, a prudent investment can be made. Central to this is the quality of the product and what else is happening in an area that might impact growth potential, such as transport and infrastructure improvements or wider regeneration plans. By the time a property is ready, typically after 12-18 months, you could see price rises of over 10 per cent without having lifted a finger. This “armchair” profit could be reinvested into further stock or enjoyed at your will. There is group of tenants and buyers who simply don’t like new homes. They prefer the character and personality that comes with an older existing property — be it a ground floor garden flat or a heritage conversion. Exit strategies Investors should consider the local landscape carefully: a standout existing property in an area that is flooded with identical newbuild is likely to stack-up in terms of demand. One only has to look at London’s Nine Elms area to see the ramifications of newbuild over supply, with some developers struggling to sell units and investors already looking for premature exit strategies. While this is an extreme case and not likely to be found in many other postcodes, it is worth keeping in mind. For those with the right vision, existing properties can be ripe for renovation, with fixes that can add value both in terms of rental potential and sales value, whether a cosmetic makeover or more in-depth works such as extensions and amendments to floor plans. For those who have connections in the building or property trade, the reduced labour costs associated with this work can certainly make the case stack up. However, for many overseas investors who do not reside in the country where their investment is located, the logistics of coordinating this work can prove impractical. Conversely, the peace of mind that comes with a newbuild property and the associated build warranty — usually provided by NHBC or BLP — are well documented. Investors take reassurance from the fact that they and their tenants aren’t going to unearth any hidden problems or need to carry out costly maintenance works, the likes of which can surface with older properties long after the transaction has completed. Choosing a project by a reputable developer that has a strong track record and proven leadership team is crucial here.

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Whether existing or newbuild, well-located properties will always have their investment merits. However, for many overseas investors, we are finding that the peace of mind offered by a high quality, newbuild property with minimal maintenance is hard to contest. Add to this the growth potential offered by purchasing the right project off-plan — and you have a very prudent investment case. Source: Gulf News Back to Index

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US COAST DWELLERS PUSHED OUT AS STORMS BRING WAVE OF WEALTHY Tuesday, April 24, 2018 When Hurricane Irma reached Florida’s Big Pine Key in September, it caused the floor of Terry and Sharon Baron’s cream-coloured mobile home to collapse. On Marathon Key, twenty miles north, the winds lifted Diane Gaffield’s mobile home off its concrete pad and smashed it against her neighbour’s house. A few blocks over, Kimberly Ruth’s mobile home simply vanished into the storm. Irma was only the start of their troubles. The Florida Keys building code effectively prohibits replacing or substantially repairing damaged mobile homes because of their vulnerability to hurricanes. That leaves people living in one of the nearly 1,000 trailers and RVs damaged or destroyed by the storm with three options: find sturdier but more expensive accommodation, repair or replace the homes and hope code officials don’t notice, or leave the Keys. “There’s no place to live,” said Mrs Baron. Around the country, the government’s response to extreme weather is pushing lower-income people like the Barons away from the coast, often in the name of safety. Housing experts, economists and activists have coined the term “climate gentrification”. Ever-stricter building requirements make homes more expensive to construct. Rising premiums for federal flood insurance make them costlier to live in. And when local governments issue bonds to pay for sea walls and other protections, as Miami did last year, taxes are often raised, further increasing costs. Hurricanes and floods disproportionately damage lower-cost homes, which tend to be older and more vulnerable to water and wind. Those homes, in turn, are often replaced with bigger, more costly houses. And when public housing is destroyed by storms, it may not be replaced at all, further shrinking the available options for people who can’t afford rising market rates. On a recent sun-bleached afternoon, Mrs Baron, 73, stood on a patch of gravel outside the temporary trailer that she and her husband got from the Federal Emergency Management Agency (Fema) and considered their options. After 44 years in the Keys, they don’t want to leave. But together they earn just $32,000 a year, mostly from Social Security, so can’t afford the $2,000 a month they say it costs to rent anything nearby. Each month, a Fema employee stops by, gently nudging the couple to find a new home by June 1, when the next hurricane season starts. “I’m just like a ship with no rudder,” said Mr Baron. Residents, researchers and housing advocates say global warming is beginning to shift not just the physical characteristics of coastal cities, but their economic and demographic makeup as well. And local officials are starting to worry about it. “Hospitality is the backbone of the economy here,” said Christine Hurley, the county official responsible for buildings, planning, and code compliance in the Florida Keys. She said the tourism industry can’t function without workers who can afford to live there. “The hotels and the restaurants, are they going to have to start busing people an hour and a half from Miami?”

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In Stafford Township, New Jersey, Hurricane Sandy in 2012 destroyed 3,000 homes. But its lasting effect was more subtle: the superstorm also reshaped the town’s population. Developers have filled lots left empty by the deluge with larger houses, which command higher prices - and therefore wealthier residents. “The demographics have changed somewhat dramatically,” said Stafford Township Mayor John Spodofora. “I’m seeing $750,000 homes going up where there was a $200,000 or $300,000 home in the past.” That’s good news for the tax base. Mr Spodofora estimated that Stafford Township has rebuilt just 70 per cent of the homes it lost, yet because of their higher value the town’s property tax revenue has almost returned to was before Sandy. But it’s also pushed less wealthy people away from the shore. “They’re moving further inland,” Mr Spodofora said. The effect of Sandy, he said, “kind of weeds out people who can’t afford to live on those waterfront properties.” The increase in extreme weather has meant less housing for the poorest Americans in other parts of the US as well. In Texas, hurricanes over the past decade have been particularly hard on public housing - units that are often older and built in places that are especially vulnerable to flooding, where land tended to be cheap. Among the toll inflicted by 2017’s Hurricane Harvey, which caused widespread flooding in the Houston area, was the damage or destruction of almost 1,500 public housing units, according to data from the US Department of Housing and Urban Development (Hud). Local housing authorities, which administer those units with funding from Hud, face no federal requirement to repair or replace them - and prior experience suggests many of them won’t be. Texas has yet to replace all of the 1,260 public housing units destroyed by Hurricanes Dolly and Ike in 2008, according to Maddie Sloan, director of the disaster recovery and fair housing project for Texas Appleseed, an advocacy group in Austin. She said Galveston, a city on a barrier island that lost 569 units to those storms, has replaced only about half of them. As with the Keys, Texas’ coastal areas suffer when public and affordable disappears, pushing people further inland, Ms Sloan said. “They have tourist-driven economies, and their low-income workforce has been displaced,” she said. “This has a real economic impact on these cities.” Brianna Fernandez, a data analyst at the American Action Forum think-tank, who studies the demographic effects of hurricanes, said that coastal areas often become wealthier after a severe storm. Parishes in Louisiana and counties in Mississippi hit by Hurricane Katrina in 2005 showed an increase in median household income years later, long after the short-term boost of rebuilding would have faded, she said. The same was true in New Jersey counties hit by Sandy. But the trend isn’t true everywhere. Ms Fernandez found that in Galveston and Orange Counties, the parts of Texas hit hardest by Ike, median income six years later had fallen by $6,000. The explanation is straightforward, she said: in counties that are poor to begin with, hurricanes can push away wealthy residents and leave mostly the poor behind. Matthew Kahn, an economics professor at the University of Southern California who focuses on climate change, explained those different outcomes through what he called an “amenity gradient”. Plainly put: in coastal areas that people find attractive, extreme weather will entice wealthy people to invest in homes, even as costs and insurance premiums increase. In coastal areas without that physical appeal, or whose appeal isn’t widely appreciated, the opposite will happen.

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“In an area that has no amenities, and that’s now at greater risk of climate change, I don’t see climate gentrification occurring,” Mr Kahn said. But in places that people want to live, like South Florida, the wealthy are willing to pay for that privilege - even as others get priced out. New research suggests the effects of climate gentrification are spreading further inland. In a just-published paper, Harvard University researchers found evidence that concern over flooding is boosting demand for higher ground, expanding the already exclusive band of real estate along coasts to include some formerly less desirable inland areas. Lead author Jesse Keenan, a lecturer in architecture, found that since 2000 or so, the value of single-family homes in Miami-Dade County has increased faster for higher-elevation properties, even after controlling for size, age and when they changed hands. That’s increased demand in areas like Overtown, an historically black neighbourhood, and Little Haiti, for years a magnet for immigrants from the Caribbean. Carlos Fausto Miranda, a commercial real estate broker in Miami, said the increased interest in those areas reflects more than just a hot market; it also shows some degree of concern over sea-level rise, as well as the normal pattern of a growing and wealthy city. “Our awareness has increased dramatically about this concern,” Mr Miranda said. Housing advocates say that climate worries have exacerbated the existing pressure that increased development and rising property values put on low-income housing. In Overtown, a neighbourhood just a mile from the shore, that pressure is evident: blocks of decrepit houses are interspersed with brand-new five-and six-story developments, painted in fresh pastel colours. Gretchen Beesing, chief executive of Catalyst Miami, a community-development and advocacy group, said she’s not surprised to see data suggesting that climate change is accelerating the gentrification of places like Overtown. “We see climate as a really important issue that intersects with poverty and financial security,” Ms Beesing said. “For some families, this may feel like an opportunity to get cash for their house. But the problem is then, where do they go?” A more contentious element of the Harvard study may be its conclusion that prices for single-family homes along the water are appreciating more slowly, and may eventually fall. James Murley, Miami-Dade County’s chief resilience officer, pointed out that Fisher Island, just off Miami’s coast, is the most expensive zip code in the country. Still, Mr Murley acknowledged that increased flooding and other types of extreme weather would have some effect on real estate trends - the question is what. “I don’t know where all this plays out,” he said. Mr Keenan said he doesn’t expect places like Miami Beach and Key Biscayne to become poorer; rather, he thinks the populations will fall over time, leaving only the very rich. That’s what worries some people in the Florida Keys. Lisa Tennyson, a local official who deals with flood insurance, said it’s essential to prevent the islands from turning into a tropical versions of Martha’s Vineyard in Massachusetts. “I’ve been to Martha’s Vineyard,” Ms Tennyson said. “It’s not an interesting place to live.” If the Keys can’t find a way to retain a mix that includes working class and middle class residents, she said, “that would be the future, right? Quiet, boring, rich.” Source: The National Back to Index

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ADDRESS RESIDENCES JUMEIRAH RESORT + SPA PHASE 1 SOLD OUT Friday, April 27, 2018 Phase two is now being launched following 'overwhelming customer response' Address Residences Jumeirah Resort + Spa, an iconic development located on the last available plot to be built on Jumeirah Beach Walk skyline, has sold all units in phase one. Phase two is now being launched following "overwhelming customer response" to the first phase, a statement said. For phase two, a limited collection of residences and serviced apartments is open for registration and will be launched for sale by joint sale agencies, Hamptons International and Asteco Property. Details of the sales launch will be announced in due course. Khedaim Al Darei, managing director of Al Ain Properties, said: “We have seen significant demand from customers for Address Residences Jumeirah Resort + Spa, including from international investors. "We are launching a limited collection of residences as part of the second phase, and we are confident that it will be well-received." Address Residences Jumeirah Resort + Spa will be the tallest tower on Jumeirah Beach Walk skyline and is within walking distance of the Dubai Marina Walk, Jumeirah Beach Walk and The Beach Walk. The mixed use 77-storey twin tower development will feature 217 rooms and suites plus La Dolce Vita inspired furnished apartments, and The Residences Jumeirah Dubai, managed by Address. Residents will also have access to signature The Spa at Address facilities, high-end food and beverage outlets, retail and other lifestyle and entertainment amenities. Multiplex Constructions has been awarded the main contract for the construction of Address Residences Jumeirah Resort + Spa, and work is progressing as per schedule. The development is scheduled to be completed at the end of 2020. Source: Arabian Business Back to Index

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ABU DHABI OFFICE RENTS FALL AS COMPANIES CONTINUE TO CONSOLIDATE Friday, April 27, 2018 Core Savills report says international first phase expansions in the office sector continue to be limited in Q1 Commercial property rents in Abu Dhabi have adjusted lower to recent redundancies and office consolidations to reach a new equilibrium, according to consultants Core Savills. Its latest Abu Dhabi Commercial Market Report - 2018 highlighted that international first phase expansions in the office sector continue to be limited during the first quarter of the year. It said most of the ongoing office leasing activity is representative of occupiers upgrading to better premises by locking attractive mid-long-term contracts. Andrew Ausama, head of Abu Dhabi Office at Core Savills said: “With landlords pushed to offer better terms in what is now a dominantly tenant friendly market, rent free periods, multiple check payments and contribution to fitouts are becoming increasingly commonplace.” Grade B buildings and older office districts continue to witness deflationary pressures as many tenants are consolidating their activities in less office space or better buildings at similar costs, he added. The report said that landlords who haven’t adjusted to these evolving market conditions by either adjusting headline rents, upgrading building premises or offering further floor divisions, are facing a standoff and losing tenants to better built premises offering flexible terms. Source: Arabian Business Back to Index

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$4K MONTHLY SALARY BEING DEMANDED TO BUY DUBAI PROPERTY Friday, April 27, 2018 Asteco says some banks, developers stipulating minimum salary as affordability remains at forefront of market Affordable housing options remain at the forefront of Dubai buyers’ interest, with many banks and developers stipulating a minimum monthly salary of AED15,000 ($4,083) in order to purchase property in the emirate, according to a new report. Asteco’s Dubai Real Estate Report Q1 2018 recorded an annual decline in villa and apartment sales of 6 percent and 9 percent respectively, with large villas at high price points generating limited interest, mainly due to the lower investment yields associated with this type of product. John Stevens, managing director of Asteco, said: “We have seen a moderate increase in enquiries and transactions for high-end residential units, suggesting that albeit at a conservative level, there is still appetite for such accommodation.” The annual rental decline, for both apartments and villas, has averaged approximately 10 percent, while incentives such as multiple cheques, rent-free periods, and the absorption of utility, maintenance and/or agent fees have become the norm. He said some of Dubai’s popular communities have witnessed the sharpest decline in rents including Jumeirah Beach Residence (15 percent), while Downtown Dubai, Dubai Marina and Deira rents fell 14 percent. Other areas that have demonstrated a significant decline in rents were Palm Jumeirah, Business Bay, Greens and Dubai Sports City. Stevens added: “While on the whole, the residential sector has witnessed only a minimal decline of 1 percent quarter- on-quarter, it is important to note that newly handed-over, lower-end buildings in areas with significant supply potential have struggled with occupancy, particularly where rates and incentives were not aligned with the market.” Approximately 3,625 residential units were handed over in Q1, with a total of 30,000 potentially to be delivered by Q4 2018, Asteco noted. Source: Arabian Business Back to Index

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NAKHEEL SIGNS DH588M DEIRA ISLANDS HOTEL DEAL WITH VIENNA HOUSE Saturday, April 28, 2018 Nakheel signed a joint venture agreement with an Austrian company to build a new hotel on Deira Islands. Courtesy Nakheel Nakheel signed a joint venture agreement with an Austrian company to build a new hotel on Deira Islands. Courtesy Nakheel Nakheel, the property developer behind Dubai’s Palm Jumeirah, will partner with Vienna House hotel chain to add a 600-room beachfront resort at its Deira Islands, its third hospitality joint venture project at the waterfront city. The companies said they will jointly build the Vienna House Deira Beach complex on the 15.3 square kilometre Deira Islands, but did not provide a timeline for the start of construction or completion of the project. The Dubai government-owned company signed a letter of intent with Austria's largest independent hotel chain for the Dh588 million hotel in Bangkok last Friday, Nakheel said in an emailed statement on Saturday. “Our ongoing strategy is to bring new, highly-reputable hospitality brands and concepts to Dubai as part of our commitment to supporting the government in realising its tourism vision,” Ali Rashid Lootah, the chairman of Nakheel, said. “Vienna House has an enviable track record in hotel management and is renowned for its excellent service and hospitality across Europe.” Dubai, which plans to attract 20 million visitors by 2020, has announced a series of initiatives to boost tourism to the emirate. This month, the Department of Tourism and Commerce Marketing presented a plan to attract more transit passengers through the Dubai hub, the world’s busiest airport by international traffic, a measure that could bring in an extra 1 million tourists. DTCM also suggested introducing time-share concept to lure more families to Dubai by listing up to 1,000 properties, which could increase their length of stay. The Vienna House Deira Beach resort will be Nakheel’s third joint venture at Deira Islands where it already has developments with 1,400 rooms under way with Spain’s RIU Hotels and Resorts and Thailand’s Centara Hotels and Resorts. Nakheel has a total of 3,600 hotel rooms at the waterfront city through existing and upcoming hotel management agreements and joint ventures, it said in the statement. Source: The National Back to Index

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DUBAI BUSINESSES UPBEAT AS CONFIDENCE IMPROVES Saturday, April 28, 2018 Economic conditions in Dubai improved in the first quarter year-on-year and also over the last quarter of 2017, according to the latest business confidence survey by the Department of Economic Development (DED). The Composite Business Confidence Index improved by 5.5 points after registering 116.7 points in the January to March period, up 111.2 points during the same quarter of 2017. DED said the outlook for Q2 2018 appears to be even more promising as businesses are anticipating better outcomes on revenues, sales volumes, profits and new orders. Brighter global economic prospects, coupled with strengthening oil prices and improvement in global trade, are supplementing Dubai’s continued investment in infrastructure, diversification and economic transformation to a knowledge-based economy. These developments have resulted in better returns on investment and are contributing to an expected pickup in growth from 2.8 per cent in 2017 in real terms to an anticipated 3.5 per cent in 2018, the survey showed. In April, the World Bank said UAE growth will reach 3.3 per cent [up from 2 per cent in 2017] by the end of the decade. “The possible reversal of Opec-mandated production cuts after 2018, a moderate increase in projected oil prices, improved oil production capacity, and recent stabilisation policies and reforms are expected to contribute positively to the economic recovery,” it said. Looking ahead, the continued drive to meet Expo 2020 infrastructure needs, and the recent announcements of a freeze in government fees for the next three years, plus new measures to boost investment and cut cost of doing business, are all adding to the upbeat business sentiments, DED said. Half of the respondents expect the business situation to improve in Q2, 2018 compared to 41 per cent in the previous quarter. Competition remains the topmost challenge for firms operating in Dubai, as cited by 19 per cent of the respondents. In the latest survey, 68 per cent of the respondents said they are preparing to upgrade technology versus 69 per cent in the last quarter of 2017 and 65 per cent in Q1 2017. Source: The National Back to Index

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BMI RESEARCH UPBEAT ON SAUDI ARABIA'S ECONOMIC REBOUND THIS YEAR Saturday, April 28, 2018 The Saudi Arabian economy, the biggest in the Arab world, is poised to grow by 1.6 per cent this year amid a rebound in oil prices and an easing of fiscal austerity, according to BMI Research. Private sector activity, however, will regain traction at a slower pace as the introduction of VAT weighs on business confidence in the first half of the year. “The Saudi economy will recover in 2018, as continued gains in oil prices support the government’s move towards a more expansionary fiscal policy in turn boosting consumption in the kingdom,” BMI said in a report. “Beyond the short-term headwinds posed by the introduction of VAT, business activity will also strengthen.” The research firm, a unit of Fitch Group, noted that government’s shift towards a more expansionary fiscal policy will be a key driver of growth over the coming quarters, boosting both government and private consumption. BMI joins a number of research firms, rating agencies and economists forecasting increased growth for the kingdom’s economy. S&P Global Ratings affirmed Saudi Arabia's credit rating in April with a stable outlook on the expectation that economic growth will accelerate in 2018 as the world's biggest oil exporter continues to boost spending. S&P said that its forecast of oil prices stabilising at an average of $60 per barrel from 2018 to 2021 would help the government keep its finances in order. The kingdom, Opec's biggest oil producer, is expected to produce 10 million barrels a day in 2018, in line with Opec’s 2016 decision to reduce supply. Next year, it’s expected that there will only be a gradual increase in production, S&P noted. BMI said in its report that fiscal stimulus by the government especially would help to give consumption a shot in the arm and that there were already signs that people are spending more money. The research firm noted that consumer and credit loans returned to positive year-on-year growth in the fourth quarter of 2017 after contracting for three straight quarters. While the introduction of a 5 per cent VAT in January weighed on consumer sentiment, its effects are starting to wane, although it may only be towards the second half of the year that consumer confidence returns with gusto, BMI said. “While we also believe that higher oil prices and stimulus measures will support business activity, the introduction of VAT will continue to pose short-term headwinds, underpinning our view that gains will primarily be seen in the second half of the year,” the report said. Oil prices edged lower on Friday, although Brent still gained for a third straight week amid supply concerns should the United States reimpose sanctions on Iran. Brent crude futures fell 10 cents, or 0.1 per cent, to settle at $74.64 a barrel. This month, the global benchmark hit highs above $75, a level last seen in late 2014. US West Texas Intermediate (WTI) crude futures fell 9 cents to settle at $68.10 a barrel, also a 0.1 per cent loss. Brent gained about 0.5 per cent last week - its third consecutive weekly gain - while WTI posted a weekly loss of about 0.5 per cent.

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US President Donald Trump will decide by May 12 whether to reimpose sanctions on Iran that were lifted as part of an agreement with six other world powers over Tehran's nuclear program. The renewed sanctions would likely dampen Iranian oil exports, disrupting global oilsupply. "That's the biggest factor right now that's driving the market. And that's why you're seeing low volatility today and for the most part during the week," Rob Thummel, portfolio manager at energy investment manager Tortoise Capital, told Bloomberg. "The market is just kind of waiting on that." Source: The National Back to Index

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DUBAI TO BUILT STUDENT HOUSING COMMUNITY IN DIAC BY 2020 Tuesday, April 24, 2018 Plans to build The Myriad Dubai, an urban styled student housing community in the heart of the Dubai International Academic City (DIAC) have been announced today. With construction expected to commence shortly, it is anticipated that the largest purpose-built, professionally managed student housing property in the UAE on a single plot will be completed by 2020. Host to an array of lifestyle features and services, the property will be located within walking distance from the majority of universities in DIAC and will boast over 1,820 multi-sized, fully-furnished rooms, all of which will include en-suite bathrooms, WiFi and offer access to kitchens and common lounges on each floor. There will be several types of accommodation including a large room of 19sqm and a standard room of 15sqm. A designated study lounge area will facilitate a productive learning environment for students while sports facilities including a gym, swimming pools, squash court, basketball and outdoor jogging track will give students access to an array of fitness activities. Additionally, restaurants, cafes, gaming rooms, an outdoor amphitheatre and convenience shopping options along with dedicated parking will form integral parts of the development and offer students a holistic, communal living experience. The contemporary urban styled residential community which will be approximately 58,000sqm, has also been designed to offer dedicated segregated spaces for young women and men and will incorporate security systems and procedures to ensure the safety of its residents. Mohammad Abdullah, Managing Director of Dubai Knowledge Park and Dubai International Academic City, said: "Dubai has rapidly transformed as a leading higher education destination in the region, attracting thousands of transnational students yearly. Student accommodation is a critical factor for these students, given that it will be their home for the next three to four years. The Myriad Dubai, located in Dubai International Academic City, is being uniquely designed to create a holistic environment complete with a range of facilities for the needs of our students, as well as our universities that require student accommodation. Our partnership with Strategic Housing Group will help us provide a home away from home for the many students who travel to Dubai for higher education." A key highlight for student residents of the community is the unique opportunity to get part-time jobs and internships. Formulated in accordance with the regulatory requirements set by the authorities in Dubai and in coordination with universities, this student work initiative will help develop the work experience of both local and international students. The Myriad Dubai project is sponsored by FIM Partners, a Dubai-based emerging and frontier markets investment management specialist regulated by the DFSA, managing in excess of USD 1.8 billion on behalf of institutional investors. Fares Bou Atme, Vice President of Real Estate at FIM Partners, commented: "We are believers in this very exciting project, given its strategic location in the heart of DIAC and the clear shortage of purpose-built student housing in a consistently expanding higher education market in Dubai. Globally, student housing as an asset class, has historically had a low correlation to other traditional real estate asset classes and has proven to be an effective diversifying addition to a real estate portfolio." The Myriad Dubai is designed to emulate a student communal lifestyle feel of some of the largest universities in America whilst providing affordable living rates and ensuring comfort, safety, and a fun community experience. Source: Emirates Business 24/7

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OLYMPIC -SIZE POOL, GIANT GYM AND SPA COMING TO NAKHEEL’S JUMEIRAH PARK COMMUNITY Thursday, April 26, 2018 Master developer Nakheel is to build a new health, fitness and leisure hub – featuring an Olympic-size pool, 16,000 sq ft giant gym and spa – at Jumeirah Park. The developer is calling for construction proposals for the Clubhouse and retail centre, which will combine first-class sports facilities with a range of restaurants, cafes and shops to create a health and wellbeing-focussed destination at the heart of the high-end Jumeirah Park community. Set to open in 2019, the Clubhouse and retail centre will also have dedicated facilities for children, including a nursery and kids’ pool. Shops will include a supermarket, health and beauty outlets and everyday convenience stores. There will also be a car park. The Jumeirah Park Clubhouse is the latest – and largest – in Nakheel’s growing collection of community clubs across Dubai, complementing existing and upcoming clubs at Jumeirah Islands, Jebel Ali, Al Furjan, Warsan Village and Jumeirah Village Circle. Spanning more than 380 hectares with a current population of over 17,000, Jumeirah Park features nearly 3,000 luxurious villas set among verdant parks and communal green spaces. It is also home to Jumeirah Park Pavilion, Nakheel’s first community retail centre, which opened in 2014. Source: Emirates Business 24/7 Back to Index

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DUBAI’S $177M “J ONE” PROJECT WINS BEST DESIGN AWARD Tuesday, April 24, 2018 The Dhs650m ($176.9m) J One residential and retail project on the Dubai Canal by the leading property development company RKM Durar Properties has been recognised with “The Best Design” award at Arabian Business Award 2018. Ibrahim Al Habib, the Chairman of RKM Durar Properties said “RKM Durar Properties are extremely honoured to have received Arabian Business’ Best Design Award for its masterpiece “J One”. We promise to deliver a unique and outstanding product”. “J One” is inspired by the authentic heritage of the region that is centred on the exquisite brilliance of pearls. For hundreds of years, some of the finest pearls in the world were harvested from the heart of the Arabian Gulf. Drawing inspiration from the gift of the sea, the towers of “J One” represent an oyster of comfort in a modern and stylized setting, reflecting the aspirational values of today’s leaders. Pearls symbolize luxury, accomplishment and prestige, and these are the values that have been central to the design and development of the “J One Towers” project. Guided by the high standards of excellence that is a hallmark of UAE’s glorious marine history, the interiors of the project showcase a balance of opulent aesthetics. The use of marble, wood, stainless steel, special glass, customized carpets and high ceilings featuring premium finish add to the uniqueness of “J One”. The predominant theme of “J One” extends the glorious maritime legacy into the living space. This is presented in the artistic interpretation of the sea including waves, shells and J One pearls. Further, the spatial experience is enhanced with the widespread application of modern design approaches including textured lines, layers to mark depth, play of transparency and space, a creation of an understated balanced and moving forms to heighten the sense of harmony between legacy and modern values. The two towers of “J One” are distinguished as much by the awe-inspiring facade and external adornment as plush interior finishes. Tower A of “J One” consists of 19 floors featuring 257 studios, one and two bed room apartments. Offering bespoke and premium lifestyle, the tower includes 2 temperature-controlled pools, spas, gyms, a sky garden and a children’s playground. The 18-floor Tower B comprises 90 two, three and four bedroom apartments all with real spacious living spaces, master bedrooms, maid’s room, closed kitchen and laundry. Tower B has another 2 temperature controlled pools, spas, health clubs and VIP lounge. Source: Emirates Business 24/7 Back to Index

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

Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai, Our valuations are carried out in accordance with the Northern Emirates, Qatar, and the Kingdom of Saudi Arabia Royal Institution of Chartered Surveyors (RICS) and not only provides a deep understanding of the local markets International Valuation Standards (IVS) and are but also enables us to undertake large instructions where we undertaken by appropriately qualified valuers with can quickly apply resources to meet clients requirements. extensive local experience.

Our breadth of experience across all the main property The Professional Services Asteco conducts throughout sectors is underpinned by our sales, leasing and investment the region include: teams transacting in the market and a wealth of research that supports our decision-making. • Consultancy and Advisory Services • Market Research

• Valuation Services John Allen BSc MRICS Director, Valuation & Advisory +971 4 403 7777 SALES [email protected] Asteco has established a large regional property sales division with representatives based in UAE, Saudi Arabia, Qatar and Jordan. Jenny Weidling BA (Hons) Our sales teams have extensive experience in the Manager – Research and Advisory negotiation and sale of a variety of assets. +971 4 403 7789 [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.