Week 14 SUNDAY, 07 APRIL 2019

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

REAL ESTATE NEWS

UAE / GCC / MENA MENA 2020 GROWTH TO ACCELERATE TO 3.4% ON REFORMS, WORLD BANK SAYS UAE CONSTRUCTION MARKET SAID TO BE WORTH OVER $1TRN CATCHING THE UAE’S ‘SILVER DOLLAR MIDDLE EAST INVESTORS SEEK TO HEDGE RISK THROUGH PORTFOLIO DIVERSIFICATION, LOMBARD ODIER SAYS FIRST 'PROPTECH' COMPANY ESTATER LAUNCHES IN BAHRAIN SHAZA'S MYSK HOTEL BRAND PLANS SAUDI DEBUT

DUBAI

PROPERTY PRICES STABILISE IN DUBAI EXPAT HOTSPOTS DURING Q1

HOW DUBAI'S BIG NAMES DOMINATED PROPERTY SALES IN EARLY 2019

DUBAI DEVELOPERS LOG IN POSITIVE RESIDENTIAL SALES IN 2019

UAE'S SOBHA REALTY POSTS RECORD $136M SALES IN Q1

EMAAR CONFIRMS ELIE SAAB DESIGN PARTNERSHIP AT DUBAI PROJECT

DANUBE PROPERTIES SALES SURGE 78.5% IN 2018

LATEST LA RIVE RESIDENTIAL UNITS SOLD OUT

W HOTELS BRANDED RESIDENCES TO MAKE MIDEAST DEBUT IN DUBAI

CONSTRUCTION OF PHASE 4 OF GIANT DUBAI SOLAR PARK 'ON TRACK'

RTA SIGNS DH680M DUBAI METRO CONTRACT EXTENSION WITH UK’S SERCO

WASL LINK LAUNCHED IN MUHAISNAH

POST-EXPO EFFECT ON DUBAI REALTY WILL BE GREATER

DUBAI DEVELOPERS PUSH POST-HANDOVER PLANS EVEN ON READY HOMES

MORE FIRST TIME BUYERS SAID TO ENTER DUBAI PROPERTY MARKET

DUBAI'S NAKHEEL DISMISSES 'UNFOUNDED' CLAIMS OVER NIGHT MARKET

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

REAL ESTATE NEWS DUBAI’S DRAGON MART ADDS EXTRA PARKING AS SHOPPER DEMANDS GROWS

OPINION: THE PROFOUND IMPACT OF BLOCKCHAIN TECHNOLOGY ON THE REAL ESTATE SECTOR

WHAT IF THE DEVELOPER HAS NO ESCROW ACCOUNT?

ABU DHABI ABU DHABI PROPERTY PRICES, RENTS FALL MARGINALLY DURING Q1 ABU DHABI'S ADNOC DISTRIBUTION IS OPEN TO ACQUISITIONS AS IT PURSUES GROWTH DEVELOPER MIRAL REVEALS YAS BAY CONSTRUCTION PROGRESS NEW ABU DHABI ENTERTAINMENT HUB SET FOR 2020 COMPLETION ABU DHABI REVEALS PLAN FOR MEGA NURSERY TO BOOST CONSERVATION

ABU DHABI FUND FOR DEVELOPMENT FACILITATED DH16.5BN OF DEALS FOR UAE COMPANIES

INTERNATIONAL PROPERTY FINDER BECOMES LARGEST SHAREHOLDER IN TURKISH REAL ESTATE PORTAL LEBANESE BANKER WINS APPROVAL TO BUILD LONDON'S CONTROVERSIAL TULIP TOWER

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MENA 2020 GROWTH TO ACCELERATE TO 3.4% ON REFORMS, WORLD BANK SAYS Monday, April 01, 2019 Economic growth in the Middle East and North Africa is set to accelerate in 2020 on the back of reforms, particularly in Egypt and the Arabian Gulf, despite lower per-capita gross domestic product, according to the World Bank. Mena growth in 2020 is forecast reach 3.4 per cent up from 1.5 per cent in 2019. Regional growth this year is projected to be slower than 2018’s 1.6 per cent because of a weaker global economy and financial-market volatility, the Washington-based lender said. “The expected upswing [in 2020] from previous growth is partially driven by ongoing policy reforms to diversify the economy and strengthen the business environment,” the bank said. “However, Mena’s modest recovery will be insufficient to change its long-standing low growth in per-capita GDP. External factors by themselves are unlikely to be able to pull the region out of its growth doldrums.” The Gulf and Egypt are undertaking various reforms to help buoy growth, lower the fiscal deficit and attract investments. In the Gulf, three countries have introduced 5 per cent VAT, some have increased their energy prices, while implementing other measures to contain the budget shortfall. Egypt has undertaken reforms as part of a $12 billion aid package provided by the International Monetary Fund. These measures include devaluing the pound in 2017 and raising energy prices. “We’re challenging the region to embrace ambitious reforms,” said Ferid Belhaj, World Bank vice president for the Middle East and North Africa region. “There’s an urgency today for reforms to improve productivity and encourage innovation and competition. We see that the countries that have taken difficult measures to implement policy reforms are the drivers of economic growth in Mena today.” Mena countries should be growing at least at twice the rates they currently do, according to Rabah Arezki, World Bank's chief economist for the Mena region and lead author of the report. Despite their economic diversification efforts, energy-rich Gulf region need to implement additional reforms to offset oil price fluctuations and cope with a lower oil price environment compared to the highs of 2014, when oil prices topped $100 a barrel. Though half of the Gulf economies grew faster than their peers during 2011-2014, all of them are forecast to expand at a slower rate than a typical high-income country during 2018-2021, the bank said. Growth in the Gulf is forecast to reach 2.1 per cent in 2019 and 3.2 per cent in 2021, up from 2 per cent in 2018 and compared to a 0.2 per cent contraction in 2017 that was sparked by oil production cuts and lower crude prices. “The revival of growth is partly and indirectly the result of policies that reduced the GCC’s reliance on oil revenues, the bank said. “Capital expenditure plans have been adopted by GCC countries that can afford it.” In its record 2019 budget, Saudi Arabia, the Arab world's largest economy, will increase capital expenditure year- on-year by 20 per cent to 246 billion riyals which will help to finance initiatives under Vision 2030 transformation initiative.

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Egypt is forecast to be one of the fastest growing economies in Mena, with the growth rate in 2019 reaching 5.5 per cent, the strongest expansion since 2008.

The economy is benefiting from an uptick in gas production, a resurgent tourism sector and higher government investment spending. “Because rising revenues from VAT and income taxes have outpaced expenditures and subsidies have been cut several times, the fiscal deficit in Egypt has been narrowing for the past two years,” the World Bank said. “The improvement in the fiscal accounts, however, has also been aided by the improvement in growth itself. This synergy between growth and fiscal reforms is expected to continue in the near term.” Source: The National Back to Index

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UAE CONSTRUCTION MARKET SAID TO BE WORTH OVER $1TRN Monday, April 01, 2019 About 28 percent of the UAE's construction projects are currently on hold, according to research by Protenders. It said that the total value of the UAE construction sector is $1.01 trillion, with $284.7 billion on hold, without giving reasons or a comparative figure. The research also revealed that $420.1 billion worth of projects are currently under construction, making up 42 percent of the total. It added that $80.8 billion of projects are in the planning phase (8 percent), $152.7 billion are in the design phase (15 percent) with $72.6 billion at the tendering stage (7 percent). Of the ongoing projects, Protenders said urban buildings make up 57 percent of the total development ($238.3 billion) while oil and gas projects make up 24 percent ($100.5 billion) and infrastructure represent 19 percent ($81.3 billion). Of the upcoming $306 billion of projects, Protenders said that urban make up 42 percent, infrastructure 38 percent, oil and gas 20 percent. The report also identified the top five developers in the UAE, according to the value of their projects. It named Abu Dhabi General Services (Musanada) as the top developer, with 27 percent of the total value of the construction pipeline, followed by Emaar Properties (25 percent), Adnoc (22 percent), the Roads and Transport Authority (21 percent) and Abu Dhabi Department of Transport (18 percent). Last month, Dubai Municipality said that it approved 29,000 building permits in 2018, while 6,043 buildings were completed last year. Dawoud Al Hajri, director general of Dubai Municipality said that the total area of construction completed in 2018 was 100 million square feet, which is a 6 percent increase in Dubai's urban construction sector compared to that of 2017. The municipality also said it approved the registration of 802 new contracting companies of different types in Dubai. Source: Arabian Business Back to Index

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CATCHING THE UAE’S ‘SILVER DOLLAR’ Thursday, April 04, 2019 With the under-35s accounting for more than half of its population, the Middle East and North Africa region has focused on supporting its youth with education and jobs. But the UAE – one of the most developed nations in the region – has set itself a new goal: to retain its sizeable cohort of maturing expatriates, who may otherwise take valuable skillsets - and spending power - elsewhere. Until now, expatriates could only stay in the UAE without a job if they were sponsored by their spouse or other entity, giving them little incentive to retire in the country. Last September, in a ground breaking move, the UAE Cabinet approved legislation to offer retiring residents aged 55 and over special five-year visas, with the option of renewing for a longer period of time if certain criteria are met. The law was scheduled to take effect in 2019, although the government has not specified when. To apply for the retirement visa, the candidate must have one of the following – an investment in a UAE property worth Dh2 million or more; financial savings of Dh1m or more, or an active income of at least Dh20,000 per month. Around 80 per cent of the UAE’s 9.4 million population are expatriates, according to 2017 statistics. While the new visa has yet to be introduced, experts say it could stimulate a fresh wave of economic activity in the UAE as businesses, including Abu Dhabi state-owned developer Aldar Properties and HSBC Middle East, seek to cash in on a powerful "silver dollar". “Globally, the over-50s have a disproportionate amount of wealth because they have known a golden age of economic growth [prior to the two deepest world recessions of 1990 and 2009],” says Meret Gaugler, co-portfolio manager for Swiss private bank Lombard Odier’s (LO) Golden Age funds, which sit within the bank’s investment management division and invest in companies targeting the ageing population. “The UAE, with its warmer climate, advantageous geography and high per capita wealth, is very well placed to tap into this lucrative market and people are starting to realise that the silver economy could really gain traction here,” she tells The National by telephone from Switzerland. It is early days, and LO’s Golden Age portfolio does not yet invest in any UAE or Middle East-based company, she adds. The silver economy is the phrase used to describe business activities relevant to the health and consumption needs of older adults. For Ms Meret, interesting companies include those mainly in the health care, financial services and consumer industries. For example: health insurance and medical technology; banks and other institutions with wealth management and diversified wealth planning units; consumer food staples; luxury goods and leisure; and even premium pet food brands. The silver economy is essentially the world’s third-largest economy after the US and China, projected by Euromonitor to reach €15 trillion (Dh61.81tn) globally by 2020. In America, the over-55s were set to account for 70 per cent of disposable income by 2020, said a 2016 report by market research firm Nielsen. Within the context of sluggish global gross domestic product growth (projected by the IMF at 3.5 per cent for 2019) in recent years, the over-55s have fared better than other age groups – in the US at least. Their average household income went up by around 75 per cent between 1983 and 2013, according to US data on median household wealth, while that of households headed by the 35 to 40 age bracket halved over the same period.

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“Because the over-55s benefited from earlier economic booms they’ve had a buffer,” Ms Meret says. “They are less dependent on underlying economic cycles and are more capable of making steady investments through market ups and downs.” In the UAE, with its tax-free salaries and – until the oil price fell in 2014 (it has since recovered to around $69 per barrel) – generous housing and schooling packages for expats and their families, the over-55s are even more likely than many other countries to have high disposable incomes and healthy savings and investment pots. The retirement visa rules have served to “jog people awake” to what could be a rapidly expanding market, according to Ms Meret. Aldar Properties is one company that sees increased opportunity from the incoming visa policy. “We are seeing more customers within the older age bracket, whether they are buy-to-let investors or end users, and this segment could gain more traction after the new law is executed,” Maan Farid Al Awlaqi, executive director at Aldar Properties, tells The National. Aldar is not yet contemplating the development of specialist retirement homes for UAE residents as the demographic is too small, he adds. Less than 1 million people in the UAE are estimated to be aged above 55, according to the World Bank. Nonetheless, the new visa rules are a chance to market Aldar’s existing schemes to a wider client base, boosting sales. “We are always looking to diversify our customer base and many of our schemes, from a quality and lifestyle perspective, are very appropriate for this age bracket,” Mr Al Awlaqi says. “People are living for longer, and they say 60 is the new 30.” Many of Aldar’s Yas Island villa communities, including Yas Acres and West Yas, with their proximity to leisure and retail facilities and the range of entertainment options including theme parks on offer, would appeal to this demographic or their visiting grandchildren. Aldar would also look to market its luxury, secluded villas on Saadiyat Island, close to the recently opened Louvre Abu Dhabi and other cultural outposts, to an older generation of UAE investors. “The UAE is not somewhere you would retire to if you have a lower income or lower savings,” Mr Al Awlaqi points out. HSBC Middle East, a franchise of the global bank, foresees greater take-up of its retirement and wealth planning services as a result of the new visa rules. It expects particular interest in products that reflect retirees’ lower risk appetite, Marwan Hadi, UAE head of retail banking and wealth management at HSBC Middle East, tells The National. “Many expatriates living away from home do not think hard about financial planning for their retirement because they do not expect to retire there, but the new visas could change that,” he says. Just one in four UAE residents are saving for retirement, despite aspiring to live comfortably in old age, according to an HSBC survey in December. In January, another study by financial services firms Old Mutual International and Quilter Cheviot found that six in 10 UAE residents depend on their end of service gratuity to fund their retirement – a possible concern as most such payments are relatively small, according to Paul Evans, head of MEA region at Old Mutual. The new visa is therefore a clever move, Mr Hadi says, because it will help the UAE to reduce wealth and population outflows and drive sustainable year-on-year growth. “By encouraging more people to retire in the UAE, the country can also expect to retain more children of those retirees, with a positive knock-on impact on skills and talent retention,” he says. For long-term expatriates approaching retirement age, the prospect of obtaining an additional five-year visa to continue their lives in the UAE without work is an appealing prospect.

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“Retiring in the UAE would be fantastic for grandparents whose children and grandchildren live in the UAE,” says Sheila Clark, a school administrator in her 50s who has lived with her family in Dubai for almost 25 years and whose children are now pursuing careers outside the country. “Some expat families have lived here for generations and it’s sad that, previously, families had to split up because of age.” However, she cautions that the UAE is an expensive country and the visa would appeal predominantly to those who have lived there for a long time and made significant sums of money. “Unless fairly well off, one would need the [financial] support of children or grandchildren to retire here and live comfortably,” she says. Whatever the initial take-up, the introduction of a formal route to retirement in a maturing and diverse nation such as the UAE is a step forward, and one that could positively influence the country’s economic growth in the years ahead. Source: The National Back to Index

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MIDDLE EAST INVESTORS SEEK TO HEDGE RISK THROUGH PORTFOLIO DIVERSIFICATION, LOMBARD ODIER SAYS Wednesday, April 03, 2019 Investors in the Middle East are increasingly hedging risks through portfolio diversification, venturing into private equity investment amid the global economic slowdown, Brexit uncertainty and trade war, a Lombard Odier executive said. “They [Middle East investors] want diversification on all asset classes and are interested in private equity, because it is becoming a very good way to diversify the risks," Patrick Odier, senior managing partner at the Swiss private bank, told The National on Tuesday. The tariff war between the two biggest global economies, a disorderly Brexit, geo-political tensions and growing global indebtedness are some of the major risks facing the world economy and investors. However, a global recession is not on the cards, Mr Odier noted. His comments were echoed by Christine Lagarde, the managing director of the International Monetary Fund, who on Tuesday said the global economy is at a “delicate moment” amid rising trade tensions, high levels of debt and uncertainty over Brexit. The IMF lowered its global growth forecast for 2019 and 2020 in January. The global economy is set to expand 3.5 per cent in 2019 and 3.6 per cent the year after, 0.2 and 0.1 percentage points lower than the fund's October forecasts. World trade also shrank by 0.3 per cent in the fourth quarter of 2018 and is likely to grow by 2.6 per cent this year, slower than the 3 per cent growth in 2018 and below a previous forecast of 3.7 per cent, the World Trade Organisation said on Tuesday. Mr Odier, however, says there is “light at the end of the tunnel” as far as the ongoing trade war between China and the US is concerned. “We think the world can offer good opportunities in 2019. The essence is risk management,” he said. The Geneva-headquartered private bank, which has globally about 20 to 25 per cent asset allocation into less liquid assets such as private equity and infrastructure, is seeing demand, particularly from the Middle East for different types of investments, with sustainability higher on investors’ agenda, he added. The allocations in the portfolio of an average investor in the region is spread 40 per cent on equities and 40 per cent on fixed income assets and the rest is divided between alternative investments including exposure to hedge funds, private equity and infrastructure assets, Christophe Lalandre, managing director of Lombard Odier Dubai office explained. However, if the portfolios had included 10 per cent more in private equity or infrastructure assets last year, their performance would have been totally different, despite a slump in global equity markets towards the end of 2018, Mr Odier noted. “We are advising our clients to diversify into those asset classes,” he said.

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The asset manager has seen a significant rise in its regional client-base, which includes, family offices, industrial and trading-related companies, institutions and entrepreneurs.

“What you have to consider is that 80 per cent of the companies in the UAE [alone] are family owned,” said Mr Lalandre. The oldest Swiss private bank is not only doing wealth management services in the region, but it is also providing governance advise to clients in terms of how they could organise their businesses around the family and in terms of assets classes. Lombard Odier, with $276bn (Dh1.01 trillion) in assets under management, expects to still double its business in the Middle East. The region is among the fastest growing markets for Lombard Odier and the bank is targeting the region to account for 10 per cent of its total assets from roughly 5 per cent at the moment, emulating the growth over the past few years. “We have been doubling our asset base in the last five to seven years,” he said. Ultra-high-net-worth individuals in the Middle East – people with a net worth of more than $30 million – are projected to increase by 20 per cent in the next five years, according to a new report by global property consultancy Knight Frank. That means the region will add another 1,660 people to the upper band of the very wealthy by 2023. The bank is in the process of opening this year its office in the capital’s financial hub, Abu Dhabi Global Market, which will focus on the its advisory business in the Middle East. Source: The National Back to Index

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FIRST 'PROPTECH' COMPANY ESTATER LAUNCHES IN BAHRAIN Tuesday, April 02, 2019 India's Estater app picks Bahrain as base to launch regional operations Bahrain has marked a new milestone in its bid to become a major technology hub with the entry of its first property technology (proptech) company, Estater. The Estater app offers a platform for listing, sharing, finding or managing a property and operates as an extension to Estater’s real estate advisory offering, using GIS mapping to provide market intelligence for developers, investors and financiers. The company said it boasts a 20 percent market share in Kuwait and Bahrain, in addition to its flagship operations in India. Estater’s launch in Bahrain demonstrates the growing opportunity for real estate investment in the country, it said in a statement. The Gulf kingdom offers 100 percent ownership in real estate for GCC nationals and a large number of mixed-use free-hold developments offering opportunities to foreign investors. The launch of Bahrain’s Real Estate Regulatory Authority (RERA) in 2018 has also brought greater transparency and stability to the sector, Estater added. Sanjay Goyal, managing director of Estater, said: “Estater is delighted to select Bahrain as a hub for its regional operations. A favourable business environment for international investors coupled with good regional connectivity makes Bahrain an ideal choice for us. Real estate value chain in the region is up for several exciting changes and we promise Estater will be one of the change agent." The launch comes as the global proptech industry is witnessing rapid expansion. Funding into the sector grew by an annual rate of 63 percent from 2012 to 2017, according to Venture Scanner. Source: Arabian Business Back to Index

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SHAZA'S MYSK HOTEL BRAND PLANS SAUDI DEBUT Friday, April 05, 2019 Shaza Hotels, a member of the Global Hotel Alliance, has signed a management agreement with Sheikh Sultan Al Harthi to operate Mysk Jeddah – the Mysk brand’s first property in Saudi Arabia. The four-star hotel is expected to open in 2021 and will include a restaurant, a cafe, meeting rooms, a kids’ club, fitness centre and rooftop pool. Simon Coombs, president and CEO of Shaza Hotels, said: "The tourism landscape in Saudi Arabia is changing rapidly due to the various government initiatives being put in place to boost the number of arrivals into the country. "New destinations are being created and a new generation of hotels is entering Saudi Arabia. Mysk Jeddah is one of them, catering to the evolving needs of the Saudi tourism sector where discerning guests are seeking a more personalised experience aligned with their lifestyle. "We are very grateful to Sheikh Sultan Al Harthi for having entrusted us with the management of Mysk Jeddah and we are confident that this Mysk will become the new sought-after address in Jeddah." Mysk Jeddah is the brand’s seventh property, the first being the Mysk by Shaza Al Mouj in Muscat, and the next hotels to open are three Mysk retreats that are part of the Sharjah Collection. In addition, two other Mysk properties are under development in Palm Jumeirah in Dubai and Kuwait that are scheduled to open by the fourth quarter of 2019 and 2020 respectively. Source: Arabian Business Back to Index

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PROPERTY PRICES STABILISE IN DUBAI EXPAT HOTSPOTS DURING Q1 Wednesday, April 03, 2019 Popular areas such as Dubai Marina and Arabian Ranches have seen a stabilisation in prices in the first quarter of 2019, according to real estate portal Bayut.com. Its latest report said prices in these districts popular with expats have remained "largely unaffected" or fallen "marginally" during the first three months of the year. Bayut also said that it has noticed a growth in search volume for more affordable neighbourhoods like Dubai Silicon Oasis, JVC and Dubai Sports City, adding that these areas have shown a slight increase in prices for some property sizes but continue to remain popular. It said most areas in Dubai have seen modest declines in sale prices under 6 percent with the exception of Business Bay and Jumeirah Beach Residence (JBR). The Dubai Q1 2019 Property Market Report showed that interest remains high in Dubai Marina, Downtown Dubai and Palm Jumeirah, all of which feature in the list of top 10 most popular areas with users. It added that there has been a minor decline in sales and rental prices in Q1 compared to those seen in Q4 of 2018, but changes "remain modest". Continuing the trend seen across most parts of 2018, Bayut said: "Dubai Marina took the crown as the most popular area for apartment sales with Marina Diamonds being the most-searched building in the area in Q1. Arabian Ranches took the top spot for villa sales, with the sub-community of Al Reem the most popular with potential investors. It added that the most notable of the price changes for apartment sales during Q1 was an 8.6 percent decrease for 1-bedroom units in Business Bay where prices fell to AED1 million. For villa sales, the most significant changes were seen in Damac Hills where prices for 4-bedroom units fell by 9.7 percent to AED2.6M million. Dubai Marina returned to the top position for apartment rentals in Q1, with Marina Pinnacle being the most sought-after building for potential tenants. For villa rentals, Mirdif remained the most popular area. The only area to witness an increase in rents in Q1 was Dubai Silicon Oasis, Bayut noted. Source: Arabian Business Back to Index

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HOW DUBAI'S BIG NAMES DOMINATED PROPERTY SALES IN EARLY 2019 Wednesday, April 03, 2019 Dubai master developers Emaar Properties, Dubai Hills Estate and Nakheel accounted for the bulk of property sales transactions in Dubai in the first two months of 2019, according to new data from Property Finder. According, Emaar sold 1,374 homes in January and February, representing 24 percent of the total. Dubai Hills Estate – a JV between Emaar and Meraas – sold 601 homes (10 percent), compared to Nakheel’s 359 homes (6 percent). Property Finder said the three companies are among the few developers to launch off-plan projects in the last few months, with most developers in Dubai focused on clearing their existing inventory. Positive residential sales were also recorded by Damac Properties, Dubai Holding, Seven Tides International, Azizi Developments and Danube Properties, the data shows. In terms of value, Emaar secured deals worth AED 3.56 billion, compared to AED 1.08 billion for Dubai Hills Estate and AED 664 million for Dubai Holding. “In Dubai last year, we saw a number of long-time renters who converted to homeowners, in part due to attractive prices and payment plans in newly handed over projects,” said Lynette Abad, Property Finder’s director of data and research. “The combined effect is a healthy trend where off-plan investors are profiting from affordable housing and the number of homeowners is also increasing,” she added. In terms of off-plan sales, Emaar sold 1,043 homes (34 percent) compared to 539 homes (18 percent) for Dubai Hills Estate and 163 (5 percent) for Dubai Holding. “Emaar share value has risen by 13% since the beginning of the year as they have taken over 49% of the market share in the first two months of 2019,” Lynnette added. In terms of the value of off-plan sales, Emaar sold properties worth AED 2.45 billion, or 49 percent, compared to just AED 688,200 (14 percent) for Dubai Hills Estate and AED 308,242 (6 percent) for Dubai Holding. Source: Arabian Business Back to Index

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DUBAI DEVELOPERS LOG IN POSITIVE RESIDENTIAL SALES IN 2019 Wednesday, April 03, 2019 Led by Burj Khalifa developer, Emaar, several big players continued to dominate the sales of new properties in Dubai's oversupplied market in early 2019, new data revealed. Dubai Hills Estate, Nakheel, Meraas, Damac Properties, Dubai Holding, Seven Tides International, Azizi Developments, and Danube Properties were the other major developers, who registered positive residential sales in the first two months of this year, according to Property Finder, an online real estate marketplace. Emaar Properties sold 1,374 homes in the first two months of 2019, accounting for 24 per cent of the total share, while Dubai Hills Estate sold 601 units, contributing 10 per cent to the total sales. The Palm developer, Nakheel, sold 359 homes, accounting for six per cent of the total market share. As reported previously by Khaleej Times, the emirate's real estate market is witnessing green shoots, with senior Dubai Land Department officials signalling increased transactions year-on-year in the first two months of 2019. Property Finder's results revealed that Emaar led in terms of sales value with Dh3.56 billion followed by Dh1.078 billion by Dubai Hills Estate and Dh66 million by Dubai Holding. "In Dubai last year, we saw a number of long-time renters who converted to homeowners, in part due to attractive prices and payment plans in newly handed over projects. The combined effect is a healthy trend where off-plan investors are profiting from affordable housing and the number of homeowners are also increasing," said Lynnette Abad, director of Data and Research at Property Finder. In terms off-plan sales during January-February 2019, Emaar sold 1,043 off-plan homes, commanding 34 per cent market share while Dubai Hills Estate sold 539 homes, accounting for 18 per cent, and Dubai Holding clinched 163 off-plan sales, contributing five per cent of the share. Emaar's off-plan sales totalled Dh2.45 billion while Dubai Hills Estate and Dubai Holding came second and third with Dh688,200 and Dh308,242 sales, respectively. In another development Danube Properties on Wednesday released its 2018 results, recording a whopping 78.5 per cent jump in residential units, increasing its share of off-plan sales to 10.6 per cent in 2018 from five per cent in the previous year. Last year, Danube sold 1,869 residential units for Dh978 million while 1,047 properties worth Dh820 million were sold in the previous year as prices are substantially lower than the peak witnessed in 2014. Global ratings agency S&P had said that property prices in Dubai have fallen 25 per cent to 33 per cent in nominal terms since 2014. Atif Rahman, director and partner of Danube Properties, said the market is the best regulated real estate market not just in the region, but globally and it is an amazing time to do business. "Danube Properties' stellar performance reflects our firm belief in the affordable housing market. Despite challenging market conditions, we have recorded 78.5 percent growth in volumes and 19.27 percent growth in the sales transaction value," he said. Most areas in Dubai have seen modest declines in sale prices in Q1 2019 of under six per cent with the exception of Business Bay and Jumeirah Beach Residence (JBR).

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Apartment sales in Business Bay recorded the highest decline in prices in the first quarter of 2019, while prices for the same in JBR have declined by 6.7 per cent, revealed Bayut data released on Wednesday.

For villa sales, Damac Hills saw the biggest decline as prices for 4-bedroom units fell 9.7 per cent with prices falling from Dh2.88 million to Dh2.6 million. This could be attributed to the handover of more units, creating a larger portfolio of units with smaller square footage than what was available in Q4 of 2018. ? ? Bayut data revealed that Dubai Marina was the most popular area for apartment sales as the upscale apartments in the area offer 6.4 per cent an average rate-of-return. While Arabian Ranches took the top spot for villa sales with a 5.8 per cent RoI. But the sub-community of Al Reem is predictably the most popular with potential investors, Bayut said. However, affordable communities such as International City and Dubai Sports City have witnessed an uptick in prices for 2-bedroom units. Prices for these units in International City have risen from Dh690k to Dh700k, while in Dubai Sports City, prices have jumped from Dh875k to Dh900k. Interestingly, both areas also boast the highest RoI in Q1 2019 for apartments. The average ROI in International City stands at an impressive 9.7 per cent while Dubai Sports City's apartments deliver an ROI of 7.9 per cent. Source: Khaleej Times Back to Index

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UAE'S SOBHA REALTY POSTS RECORD $136M SALES IN Q1 Tuesday, April 02, 2019 Sobha Realty, the UAE-based real estate developer, has announced a record AED500 million ($136 million) in sales bookings in the first quarter of 2019 The company said its sales from January to March are 33 per cent over the target of AED375 million per quarter. Last year, Sobha Realty announced its intention of generating up to AED1.5 billion in turnover in 2019, increasing the target by two-thirds to AED2.5 billion in 2021. In a bid to take the business public and boost revenues, the company said it aims to more than double its current market share to five percent by 2021. Tirthankar Ganguly, chief marketing officer of Sobha Realty, said: “The strong performance of Sobha Realty testifies to the strength of Dubai’s property sector, driven by mature economic fundamentals and a robust regulatory framework. "Through our flagship project, Sobha Hartland, we offer world-class residential options... Our strategy to unlock the true potential of Sobha Realty aims to deliver long-term value to our customers as we continue to focus on our core competency.” Sobha Hartland is an eight million sq ft waterfront community situated along the Dubai Canal. Sobha Realty is a multinational, multifaceted group with developments and investments in the UAE, Oman, Bahrain, Brunei and India and was established in 1976 by PNC Menon. Source: Arabian Business Back to Index

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EMAAR CONFIRMS ELIE SAAB DESIGN PARTNERSHIP AT DUBAI PROJECT Friday, April 05, 2019 Emaar confirmed on Friday that it is partnering with designer Elie Saab on Emaar Beachfront, a gated island destination in Dubai. The developer said it is partnering for the first time with the renowned fashion designer for the new residential development. Announcing the partnership, Mohamed Alabbar, chairman of Emaar said: “Elie Saab is the pride of the Arab world, and a fascinating international success story. Through our first association with Elie Saab, admired by the world’s leading celebrities, we are offering discerning customers a new lifestyle address. "Every aspect of these glamourous residences is personally designed by Elie Saab, who brings his rare genius and aesthetics to create a new architectural and lifestyle expression. It is our honour to be associated with him.” Elie Saab, founder and chairman of Elie Saab Group, added: “We are delighted to collaborate with Emaar and Mohamed Alabbar on this new project. Over the years, Elie Saab has evolved into a lifestyle brand, through the development of diversified product categories that deliver a unique experience of the brand’s universe.” In addition to 1 to 3-bedroom apartments, the tower with interiors by Elie Saab at Emaar Beachfront will have a collection of Elie Saab four-bedroom penthouses. Designed to celebrate the 1930 Art Deco era, the tower's ground level boutique fashion stores, galleries and cafes as well as lobbies will be designed by Elie Saab. Inspired by chic Miami lifestyle, an amenity pool deck located at the 8th level, will be terraced and landscaped to provide a retreat for residents while an infinity edge swimming pool, gym and recreational facilities will also feature. Owners of the units will also have the choice to get a private consultation from the Elie Saab design team on purchasing furniture for their homes. Source: Arabian Business Back to Index

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DANUBE PROPERTIES SALES SURGE 78.5% IN 2018 Wednesday, April 03, 2019 Danube Properties recorded a 78.5 percent jump in sales of residential units in 2018, bringing its total market share of off-plan sales to 10.6 percent, the company announced on Wednesday. In 2017, the company’s market share stood at 5 percent. In a statement, Danube said that the company sold 1,869 residential units last year. Of the total, 89 were ready-to- move-in while the rest were off-plan properties. The value of the sales rose 19.26 percent to AED 978 million last year, compared to AED 820 million in 2017. “Despite strong headwinds affecting the growth of the global economy, the UAE economy remains an oasis for growth,” said Danube Group founder and chairman Rizwan Sajan. “The end of conflicts elsewhere in the Middle East bodes well for growth in the regional economy. We see strong growth opportunities, and we remain fully committed to the local economy and the real estate sector with more project launches as we move forward,” he added. Danube Properties has so far awarded AED 1.6 billion worth of construction contracts involving 10 of the 12 projects launched so far. In 2018, Dubai completed construction of 358 residential units while it awarded construction contracts for 926 units. The developer had 1,339 units in the tendering stage and an additional 17 percent in the design stage. Affordable housing market “Danube Properties’ stellar performance reflects our firm belief in the affordable housing market,” said Danube Properties director and partner Atif Rahman. “Despite challenging market conditions, we have recorded 78.5 percent growth in volumes and 19.27 percent growth in the sales transaction value. “The market is the best regulated real estate market not just in the region but globally and it is an amazing time to do business,” he added. Rahman added that 2018 has been the company’s best year so far. “These results show that if you have the right properties at the right location and are offered at the right price with the most competitive payment plan, customers will buy them,” he said. “We have proven this time and time again in all the 12 projects launched by Danube Properties so far.” Source: Arabian Business Back to Index

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LATEST LA RIVE RESIDENTIAL UNITS SOLD OUT Sunday, March 31, 2019 Meeras has reported that units at La Rive's fourth residential building have been completed sold out within the first 24 hours of their launch. Meraas' waterfront project based at Port De La Mer - the first freehold master community in Dubai's Jumeriah area - witnessed an immediate level of investor interest in the high-end, off-plan projects. Prices for La Rive's off- plan units started from Dh1.3 million in the four-storey building, which comprises one to four-bedroom apartments and penthouses. On completion, a total of over 250 high-end apartments and penthouses will be available across La Rive's four buildings. La Cote and La Rive are nestled on Port De La Mer by Meraas, the upcoming Mediterranean-inspired waterfront development, which boasts a setting that blends beachfront and marina living with the inimitable architectural imagination of Meraas. Resting on the tip of La Mer's "northern peninsula", Port De La Mer offers the modern family the feel of an island retreat with the heartbeat of the city. Together, both of Port de la Mer's residential projects will comprise nine buildings, each of which will offer views of the surrounding marina, waterfront and Dubai's skyline. To date, eight of the nine buildings have been officially launched. The private residential community will feature a wide-ranging mix of apartments with majestic sea views and verdant greenery overlooking the marina and waterfront. With excellent road and sea connections, yacht owners will be able to take in the coastline at their leisure. Residences at Port de La Mer are at walking distance to La Mer, the world-class beachfront destination by Meraas, and only 10 minutes away from City Walk, a design-inspired open-air lifestyle destination by Meraas. Source: Khaleej Times Back to Index

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W HOTELS BRANDED RESIDENCES TO MAKE MIDEAST DEBUT IN DUBAI Saturday, April 06, 2019 Al Sharq Investment has announced that it has signed a contract with Marriott International for Palm Jumeirah project Al Sharq Investment has announced that it has signed a contract with Marriott International to debut W Hotels branded residences in the Middle East. The contract relates to the rebranding of its luxury Alef Residence project in Dubai, a statement said. Announced at the real estate exhibition MIPIM Cannes, the agreement means that the AED3 billion project on the West Crescent of Palm Jumeirah will see owners begin moving in the residences later in 2019. The project rising next to the W Dubai - The Palm contains a variety of residential options, including eight mansions with 104 residences priced from AED15 million to AED85 million. The W Residences Dubai – The Palm offers five penthouses that come with private lobbies and lifts, 15 garden residences with private landscaped garden and swimming pool, 84 panorama residences with only two units per floor. Owners will have a selection of two, three, four and five bedroom luxury homes. Mohammed Ali Al Shehri, board member of Al Sharq Investment said: “The agreement with Marriott International comes as part of our continuous efforts to meet the evolving needs of our customers, who are increasingly seeking bespoke luxury.” “Dubai is the perfect location to debut our W Residences in the Middle East,” added Dana Jacobsohn, Marriott International vice president, Global Mixed-Use Development. “We’re excited to work with Al Sharq Investment to add what is sure to be an extraordinary W Residences project to our growing portfolio of branded residential projects around the world.” Source: Arabian Business Back to Index

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CONSTRUCTION OF PHASE 4 OF GIANT DUBAI SOLAR PARK 'ON TRACK' Friday, April 05, 2019 DEWA chief inspects construction work at the Mohammed bin Rashid Al Maktoum Solar Park The fourth phase will provide clean energy for 320,000 residences and will reduce 1.6 million tonnes of carbon emissions annually. Construction work on the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park, the largest single- site concentrated solar power (CSP) project in the world is progressing on schedule, it has been announced. Saeed Mohammed Al Tayer, managing director and CEO of Dubai Electricity and Water Authority (DEWA), has inspected the construction work of the project which has a capacity of 950MW and will cost up to AED15.8 billion. The base concrete of the CSP tower has been completed and, once built, the 260-metre tower will be the tallest solar power tower in the world. Al Tayer said the work is progressing "according to the set timetable for this project". Al Tayer was briefed on the progress of construction work by Abdul Hamid Al Muhaidib, executive managing director of Noor Energy 1, a venture formed through a partnership between DEWA, Saudi Arabia’s ACWA Power and China’s Silk Road Fund to build the fourth phase of the Park. Al Muhaidib confirmed the completion of the concrete base that contains about 1,300 tonnes of steel rebar and concrete, equivalent to 20 percent of Paris’s Eiffel Tower. Al Muhaidib added that 33 percent of the engineering work has been completed for the project. The fourth phase will provide clean energy for 320,000 residences and will reduce 1.6 million tonnes of carbon emissions annually. The Mohammed bin Rashid Al Maktoum Solar Park will generate 5,000MW by 2030 with investments of up to AED50 billion. The 13MW photovoltaic first phase became operational in 2013. The 200MW photovoltaic second phase of the solar park was launched in March 2017. The 200MW first stage of the 800MW photovoltaic third phase became operational in May 2018. The third phase will be completed in 2020. Source: Arabian Business Back to Index

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RTA SIGNS DH680M DUBAI METRO CONTRACT EXTENSION WITH UK’S SERCO Monday, April 01, 2019 Dubai’s Roads and Transport Authority extended a contract with British company Serco to operate and maintain the metro transit system until September 2021. The value of the contract is Dh680 million over a two-year period, the RTA said on Monday. “The operation and maintenance by specialised companies reduces the operational costs of the metro as private businesses are able to provide high-quality service and performance at lower costs through continuous improvements and value engineering,” said Mattar Al Tayer, director general and chairman of the RTA. “This allows RTA to focus on its core responsibilities of developing legislation and overseeing implementation and enforcement.” Under its previous contract with the RTA, Serco delivered strong operational performance levels for Dubai Metro, he added, with a train service availability of 99.9 per cent and punctuality of 99.8 per cent, and a record 204 million journeys in 2018. The RTA’s introduction of new rail operation technologies also contributed to achieving these indicators, the chairman said. Under the contract, Serco will provide operational and maintenance services to both lines of the Dubai Metro as well as the under-construction Route 2020, which covers the 15-kilometre extension of the Red Line to the Expo 2020 site. The service is expected to start as a trial in February next year. The contract includes the operation and maintenance of all metro assets such as trains, railways and stations. Serco is also contracted to provide passenger transit services according to daily demands, and to maintain fare systems and collect the proceeds of selling and recharging Nol Cards. The card is an electronic ticketing system that was launched in 2009 for use on all modes of public transport in Dubai. Serco will also help recruit and train Emirati employees as part of the government’s Emiratisation local employment policy. “The RTA is keen to qualify Emiratis and the transfer of knowledge of international expertise in the operation and maintenance of rail systems, a new field for the region,” Mr Al Tayer said. Rupert Soames, group chief executive of Serco, said the renewal of the contact demonstrates “the high confidence the RTA has in Serco to continue delivering world-class levels of safety, operational performance and customer service". A Dubai government-commissioned study last September found that the Dubai Metro system, which began operations almost a decade ago, added an estimated Dh66 billion to Dubai’s economy by 2016. Accumulated future returns are set to exceed four times what it cost to build the metro by 2030, the report said. Source: The National Back to Index

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WASL LINK LAUNCHED IN MUHAISNAH Wednesday, April 03, 2019 Wasl properties, a subsidiary of wasl Asset Management Group, has announced the launch of its 'wasl link' development into Dubai's leasehold market. The new launch forms part of the company's strategy to provide affordable housing options in established areas of Dubai. Wasl link will be located in Muhaisnah and will provide the market with 247 units comprising a total of eight studios between 386 - 434sqf; 95 one-bedroom apartments between 620 - 855sqf; 129 two-bedroom apartments between 1,076 - 1,335sqf; and 15 three-bedroom apartments between 1,516 - 1,624sqf. Zainab Mohammed, chief property management and marketing officer at wasl properties, said: "The launch of wasl link into the Dubai's leasehold market further consolidates wasl's vision to offer high-quality, customer- centric developments in key areas of the emirate, expanding upon our portfolio and presenting residents the very best in urban living." Wasl link is a minute away from Sheikh Mohammed bin Zayed Road linking Dubai and Sharjah with the other emirates. The new development will offer affordable units with superior finishing and fittings and will include separate gyms for males and females. Source: Khaleej Times Back to Index

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POST -EXPO EFFECT ON DUBAI REALTY WILL BE GREATER Wednesday, April 03, 2019 With a little more than a year left until Expo 2020 Dubai, industry experts at the Dubai Property Festival say they are now finding a spate of high demand for Dubai’s real estate sector. Expo 2020 is expected to attract 25 million visitors, of which 70 per cent will be from outside the UAE. In an interview with Property Weekly, Robert Booth, managing director of Ellington Properties, says, “I am personally very excited about Expo 2020. I had the benefit of growing up in Vancouver that hosted the 1986 Expo, and once people saw the city, they kept coming back and buying property. So I think the great thing about the Expo here is that it will have a huge long-term impact. In fact the post-Expo impact will be greater.” According to Booth, developers have the mandate to support the government in ensuring there is enough units to service Expo 2020 Dubai and the new stream of population that will come as a result. “Dubai has one of the highest growth rates in population, year-on-year, around the world. It’s important to note here many developers have already slowed down their launches so that post 2020 the market goes back to moderate supply. It is always better to invest when it is a buyer’s market in order to benefit from the offers available.” Get on the property ladder The challenge is buying your first property, says Booth. “Once you get on the property ladder, you can work your way up. It is also important to remember that property is a long-term investment, and not a short-term gain. You are not here for one or two years; think 10-20 years, think multigenerational. Many big families think multigenerational when they buy property. So even if it’s a small property, get on that ladder.” According to Booth, investors in Dubai also enjoy higher returns, in addition to paying zero tax on investment — a combination that does not exist in other global markets. “Pick up quality assets as they always hold value,” he advises. “Don’t buy it just because it is less expensive than another. Think about the location. Buyers should look at good neighbourhoods first and then pick the home. Take your time and do your research — buying property is the biggest investment decision you will make.” Booth picks Jumeirah Village Circle and Town Square as areas with a great neighbourhood and community feel. “MBR City is also a great location where you are only 10 minutes away from Downtown, the epicentre of Dubai.” Affordable living Despite low prices, Lewis Allsopp, chief executive of the Dubai real estate agency Allsopp & Allsopp, says Dubai now has a very different clientele. “You don’t get a Ferrari when you enter the country anymore. It’s a different place now. You’re not coming here to be a millionaire, you are coming here to have better-quality life and be in the sun. We have other expenses now, such as VAT and Salik, but that has made Dubai a better place with great facilities. People with lower salary jobs are also coming to Dubai now, and they are willing to stay further away from the city and look into affordable areas.”

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While the core areas, such as Downtown Dubai and Dubai Marina, will continue to stay in value, Allsopp says price will get cheaper as one goes further out.

“This means being out that farther away, you will be at a lower salary level, but you will use transport, such as the Metro, to get into town, like people do in most big cities such as London or New York. This adds another dimension to Dubai.” Ready property Talking about ready properties, Booth says, “My recommendation is to target properties that will be available in the coming months as that also means that the warranty will come from the developer directly. You have Arabian Ranches 2, which is a very well-established community with prices starting from Dh1.2 million for a villa. There are also Nshama apartments where a two-bedroom unit starts from Dh800,000. A one-bedroom property in one of our projects in Jumeirah Village Circle is at an average of Dh800,000, while a very similar property in Meydan is around Dh1.1 million. In Downtown Dubai figures are more towards the Dh1.7 million mark.” Buy now The greatest concern of investors today is whether they will lose money if prices go down. “If you have three to five years, and there is the option to rent or buy, you have to buy,” says Allsopp. “When you rent, you are paying someone else, and you might have to move out one day of that property. But when you buy a house, in 20 years, even if the price goes down to zero, you still have a home. But as tenant, after those 20 years, you have nothing.” Source: Gulf News Back to Index

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DUBAI DEVELOPERS PUSH POST- HANDOVER PLANS EVEN ON READY HOMES Saturday, April 06, 2019 Dubai: Don’t want to wait around for an off-plan property to be delivered? Options are opening up for buyers going for a ready property in Dubai … and with the added comfort of paying it off years after the handover. That’s right, post-handover payment plans that have helped generate higher off-plan sales are financing deals for ready homes as well. While it is the government-affiliated developers who are going to town with these offers, private players too are getting into the game with payment schedules of five years and more. FUNDING Post-handover payment plans that have helped generate higher off-plan sales are financing deals for ready homes as well. They will need to, as an estimated 30,000 homes are likely to be delivered this year, on top of the 20,000 plus units from last year. No developer can afford to keep unsold ready units on their books for too long. (In the first three months of the year, 3,182 ready homes were registered with Dubai Land Department, a decline of 6 per cent from 2018.) “Holding unsold stock is always a cost, but those that remain unsold for three years and more will need to pay for VAT as well,” according to a developer source. “That’s one cost developers with ready residential properties will not want to have. “The only options then would be to offer unsold units on rent directly, or they try and come up with some plan that will see payments being made over multiple years after handover.” It was in 2015 that developers came up with post-handover schemes on off-plan launches. So, where are the post- handover deals happening in the ready space? Nakheel has had such plans on their Al Furjan townhouses and villas — of five and seven years respectively — since last year, while Emaar did so for Arabian Ranches 2 units, where a three-bedroom townhouse started from Dh1.45 million. The base price for an Al Furjan townhouse was Dh3 million, with a 5 per cent down payment before moving in. “This post-handover schemes on ready homes move has accelerated, with more private sector developers offering them,” said Sameer Lakhani, Managing Director at Global Capital Partners. “In the case of some, it’s a zero down payment with monthly payments thereafter. For others, each customer could get an individualised payment plan. “Now, even individual property owners are offering the same as well. In the current market situation where every developer is doing it, individual sellers have to do the same if they want to sell.” In terms of duration, payment plans in some cases — those from individual sellers — have in some instances touched 15 years. All of which suggest there should be an increase in overall ready property sales for this year. At a stretch, even property prices could see an improvement — because the longer the payment plan, the higher will be the selling price set on the home. These are being reflected in prices at communities such as Jumeirah Village Circle (JVC).

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“Over the last 18 months, citywide prices declined 12 per cent, while JVC prices have risen 1 per cent,” according to the latest Reidin-GCP report. “JVC has had a high number of registrations in the last year of units being registered at higher prices to what the (wider community) trades at currently.” The same instances of higher prices for longer payment plans is visible at Nakheel’s Al Furjan community too. “Nakheel is offering ready units at a significant premiums to the ready market with a five- to seven-year post- handover payment plan,” the Reidin-GCP report adds. “These sales are higher than the current rate consequently, pushing the property index upwards as these sales account for high portion of the overall market. “The villa index has declined by 7 per cent in the last three quarters, but Al Furjan has remained stable. We believe that as post handover payment plans continue to proliferate, other indices will also edge higher.” The looming VAT factor in residential selling As things stand now, all residential sales deals are “zero-rated”, thus exempt from the 5 per cent VAT. But going forward, if developers are left with unsold stock after three years, the VAT kicks into effect. “What’s clear for now is that on constructed buildings, after three years, there will be a VAT on the unsold homes,” said an industry source. “But if a building is being built now and three years later still has unsold stock, does VAT apply even then? That’s not yet clear, and the market wouldn’t mind further clarity on that.” Source: Gulf News Back to Index

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MORE FIRST TIME BUYERS SAID TO ENTER DUBAI PROPERTY MARKET Monday, April 01, 2019 Lower prices mixed with new laws regarding visas and retirement options are pushing Dubai residents to take the plunge as first time buyers in the property market, according to real estate portal Bayut.com. Data from the property website shows a positive start to the year in term of apartment and villa sales but CEO Haider Ali Khan said it is not just a case of people taking advantage of a fall in price, there are also wider social changes involved. He said: “We can already see certain signals suggesting that 2019 could be an extremely dynamic year of change for the Dubai real estate market. The highly-awaited Expo 2020 is drawing closer, a lot of new projects are with favourable payment terms are being announced, and attractive developments including Bluewaters Island are being well-received in the region. “It’s certainly a buyer’s market, and there are more millennial homeowners now than ever before." He added: “Contrary to popular opinion, however, it’s not just the lowered prices that are attracting first-time property buyers in the city. The announcements regarding the new visa laws and retirement laws have resulted in creating a more positive sentiment towards Dubai as a viable market for expat investments. “Developers are also trying to stay ahead of the game with innovative and attractive new payment plans, rent-to- own schemes and other marketing strategies to entice more buyers, so we can certainly expect to see some more people thinking about property investments in 2019.” Away from home there is also renewed interest from international property investors looking at Dubai, he said, adding: “With Expo 2020 getting closer, there has also been a significant increase in foreign investments in Dubai, especially from South East Asian countries including China, and that’s always good news for any economy.” His comments follow months of falling property prices in Dubai. According to research released recently by Cavendish Maxwell, average Dubai property prices have softened by more than 9 percent in the past year. More than 47,000 residential units are likely to be handed over in Dubai in 2019, according to statistics from Property Finder. Source: Arabian Business Back to Index

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DUBAI'S NAKHEEL DISMISSES 'UNFOUNDED' CLAIMS OVER NIGHT MARKET Tuesday, April 02, 2019 Dubai developer issues statement to tackle 'misguided' social media reports regarding tenant rental agreements Nakheel on Tuesday moved to dismiss "misguided and unfounded" reports on social media regarding tenant rental agreements at The Night Market on Deira Islands. The Dubai-based developer issued a statement saying it remains committed to The Night Market which is nearing completion, without giving details about the social media claims. It added that it has recently written to tenants - with reminders where necessary - requesting them to sign their lease for the project. "We are proud of, and committed to, The Night Market, which was created specifically to encourage young Emiratis into business. We continue to support them, as we always have, by exercising fairness and flexibility with a number of initiatives to assist those who booked space at the project," Nakheel said. The company added that it is offering rent reductions of between 30-50 percent, three months’ free rent, instalment plans, consolidation of units by 50 percent, the option to sublease and the ability to transfer units post signing. When the project was launched in 2014, Nakheel said young Emirati entrepreneurs made up the majority of hundreds of local businessmen and woman who have snapped up shop space. Some 1,200 retail and restaurant units had been reserved by UAE traders, with investors' ages ranging from early 20s to over 60, Nakheel said at the time. Source: Arabian Business Back to Index

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DUBAI'S DRAGON MART ADDS EXTRA PARKING AS SHOPPER DEMAND GROWS Thursday, April 04, 2019 Dragon Mart, the Dubai retail and trading hub, has added 900 extra parking spaces to meet growing customer demand, Nakheel said on Thursday. A new multi-storey car park has opened at Dragon Mart, which sees 40 million shoppers each year, to bring the total number of parking bays to more than 9,000. The new car park is part of the AED169 million Dragon City phase three, which also features a retail showroom complex, which is set to open soon. Dragon City currently comprises Dragon Mart, its sister mall, Dragon Mart 2 and an ibis Styles hotel. Dragon Towers, the first residential development at the community, and a Premier Inn hotel, are under construction. Dragon Mart is owned and operated by Nakheel Malls, the retail arm of Nakheel. Its opening comes hot on the heels of the RTA’s launch of phase 2 of International City’s AED400 million road improvement scheme – funded by Nakheel to the tune of AED201 million – which went live last Saturday. Source: Arabian Business Back to Index

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OPINION: THE PROFOUND IMPACT OF BLOCKCHAIN TECHNOLOGY ON THE REAL ESTATE SECTOR Wednesday, April 03, 2019 The enormous potential of blockchain is being leveraged by Dubai, which is at the forefront of driving the smart transformation of the world economy, writes Farhad Azizi, CEO of Azizi Developments Blockchain technology is revolutionising the real estate sector and transforming how business in this realm will be conducted in the future. Though initially created to support cryptocurrency, blockchain technology has now made a quantum leap, going beyond the purview of Bitcoin and Ethereum. Today, it is possible for people and companies to make high-value transactions — including those of immovable assets like property — without the need for intermediaries. By undermining the liquidity challenges associated with owning hard assets, tokenisation is democratising asset ownership with blockchain- stored tokens. Reselling assets is now easier and geographic boundaries in real estate transactions are becoming history. The enormous potential of blockchain is being leveraged by Dubai, which is at the forefront of driving the smart transformation of the world economy. The Dubai Blockchain Strategy, announced by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum; Crown Prince of Dubai, Chairman of the Executive Council of Dubai, and Chairman of the Board of Trustees of the Dubai Foundation of the Future; sets a clear roadmap for businesses to tap into the potential offered by blockchain technology. The strategy aims to achieve the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai the first city to be fully powered by blockchain by 2020 through the three strategic pillars of Government Efficiency, Industry Creation, and International Leadership. For the real estate sector, driving the transformation is Dubai Land Department, which has created a blockchain system using a smart and secure database of all real estate contracts. The move to smart contracts will cover lease registrations and link them to utility and telecom accounts as well as all property-related bills. The end-to-end transactions recorded on the real estate blockchain will provide scalable, secure, transparent, shared, and immutable property data for all the participants in a trusted network. This means data relating to real estate can be shared and accessed across different government and private sector entities, all of which benefit from real-time insights. Eliminating all manual processes, real estate transactions are not only becoming faster but also more flexible and relevant. The immediate impact of this transformation is the speed in which property transactions will be conducted; what would have taken 20 days to be concluded can now be accomplished in less than 30 minutes.

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For customers, the advantages are manifold: By creating a single platform for all the different services provided by various stakeholders, blockchains will enhance the customer experience and make the journey — from sales to after sales — seamless. A significant impact of Dubai’s move to blockchain technology in the real estate sector is the reduction in the need for pureplay brokerage services as the single digital real estate platform will oversee all sales and rental transactions as early as next year. For an industry that has long been influenced by brokers, the transformation will mean greater value for customers. Taking the blockchain transformation into actionable plans, Smart Dubai recently integrated blockchain technology into its online payment portal — DubaiPay — to enable the real-time reconciliation and settlement of transactions. In short, Dubai not only has set in place a strategy but is also implementing impactful tech reforms that will make blockchain technology an integral part of the industry’s operations, with the winners being all stakeholders, but predominantly the customer. Source: Arabian Business Back to Index

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WHAT IF THE DEVELOPER HAS NO ESCROW ACCOUNT? Tuesday, April 02, 2019 The Dubai off-plan real estate market is well regulated and developers comply with their legal obligations. However, amid current market conditions, there have been reports that developers are now selling off-plan without an escrow account or with a registered escrow account but not depositing money in it. It is important that purchasers are aware of their rights and of developers’ responsibilities to address challenges in the unlikely event they find themselves facing such developers. Here is what purchasers can do if they find themselves in a dispute with a developer: The law Pursuant to Law 8 of 2007 (Escrow Account Law), developers selling off-plan units must open a separate escrow account for each project with an escrow agent, being a bank or financial institution accredited by the Dubai Land Department. The developer must deposit all amounts paid by the purchasers of off-plan units and loan payments funded by financiers in the escrow account for the purpose of construction of the real estate development project. The amounts deposited in the escrow account are to be allocated exclusively for the construction of the project and settlement of the project financing payments in accordance with the law. The penalty for any person who steals, appropriates or forfeits any amounts of money delivered to him or her for the purpose of implementing real estate development projects is a jail sentence and a fine of at least Dh100,000. What can buyers do? In the event property buyers find themselves facing a dishonest developer, a complaint should immediately be lodged with the Real Estate Registration Agency (Rera), which is responsible for regulating the activities of real estate development companies and monitoring all development projects on a financial and technical level. It also monitors the compliance of developers with the applicable laws and imposes penalties for violations. Arbitration To recover lost monies and claim damages, purchasers should also look to the dispute resolution mechanism in the sale and purchase agreement (SPA), which is most commonly an arbitration. Arbitration is beneficial as it is usually faster than going to court, it is private and specialist arbitrators can be used to determine a matter. In Dubai the most popular arbitration venues are before the Dubai Chamber of Commerce and Industry or the Dubai International Financial Centre/London Court of International Arbitration (DIFC/LCIA) Centre, which is based in DIFC. Court If the SPA has no arbitration clause, purchasers can file a case with the Dubai courts. Proceedings are started by filing a claim in the relevant court office. On application by the claimant, payment of court fees can be deferred in exceptional cases. The court fee depends on the value of the claim, and has a maximum cap of Dh40,000. This fee is payable either on an application for provisional relief, or on filing the main lawsuit. The claim must meet procedural requirements, include the names and addresses of the parties to the proceedings, and include details of the claim. Documents in support of the claim are usually annexed to the claim

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and must be translated into Arabic. The court issues a summons with a hearing date endorsed on it for service on the defendant. The court usually appoints an expert to assist and usually accepts their report.

As more and more off-plan units come into the market, purchasers, more than ever, should be aware of their legal rights, potential remedies and developers’ responsibilities. Shahram Safai is a partner and Anna White is an associate at Afridi and Angell. Source: Gulf News Back to Index

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ABU DHABI PROPERTY PRICES, RENTS FALL MARGINALLY DURING Q1 Saturday, April 06, 2019 Property prices and rents in Abu Dhabi have fallen marginally during the first quarter of 2019, according to new research. Bayut.com's Abu Dhabi Q1 2019 Property Market Report said a large portfolio of affordable properties has led to a high amount of interest in the Abu Dhabi property market. It said areas such as MBZ City and Khalifa City A are attracting a significant amount of interest from both tenants and investors, as can be seen from the high volume of searches in these areas. "A number of factors can be attributed to this positive trend, including delivery of prominent off-plan projects resulting in increased investor confidence.," said the report. Bayut said Al Reem Island is highly in-demand for apartment sales offering an return on investment of 6.9 percent while Al Reef continues as the most popular area for villa sales. The report said the most significant changes for apartments sales were for 1-beds in Al Raha Beach where prices fell by 6.5 percent to AED1.03 million. For villas, there was a 6.2 percent decrease in sale prices for 5-bedroom villas in Al Reef to AED2.13 million. Mohammed Bin Zayed City (MBZ City) was identified as the most popular area for both apartment and villa rentals in Abu Dhabi while it also saw the most significant decline of 10 percent for 2-bed homes. Haider Ali Khan, CEO of Bayut, said: “The Abu Dhabi property market has undergone tremendous changes in the last two years, with several high profile off-plan projects being handed over and more luxury properties entering the market, particularly in waterfront communities such as Yas Island and Saadiyat Island. "We have also seen a high number of prospective buyers searching for luxury properties in these areas, along with other upscale neighbourhoods such as Al Reem Island. "Most decreases in the capital have remained modest with changes largely falling within the 5-6 percent margin. Another interesting trend is the increased popularity for communities such as Khalifa City A, Shakhbout City and Al Ghadeer which are all ideally located for those commuting to Dubai. "We can expect these trends to carry on into the summer, and perhaps even see increases when more handovers are completed in the second half of the year." Source: Arabian Business Back to Index

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ABU DHABI'S ADNOC DISTRIBUTION IS OPEN TO ACQUISITIONS AS IT PURSUES GROWTH Saturday, April 06, 2019 Adnoc Distribution is open to acquisitions of fuel and convenience retailers or other assets that fit its business model - including in markets like India - as it pursues growth, its deputy chief executive said. “We want to widen our options to the customers,” John Carey told The National, when asked if he would consider acquiring assets to boost the company’s growth. “When you look at the inorganic [growth] it’s about the investment return and the fit with our business,” he said on Saturday, declining to say if the company is already engaged in discussions to snap up other companies. The Abu Dhabi-headquartered firm, which signed a preliminary agreement with a partner in India for the marketing and distribution of its lubricant products, may also look for acquisitions in Asia's third-largest economy. “It is a partnership that ultimately could lead to acquisition,” said Mr Carey. "The partnership would look at other companies to acquire but we have much more to talk about it [with the partner].” The company, a subsidiary of Abu Dhabi National Oil Company, on Thursday received a nod from its shareholders for a programme that allows it to buy back up to 62.5 million shares, equivalent to 5 per cent of its publicly traded shares, during a 12-month period. However, Mr Carey said a buyback is not “imminent” or a policy which the company would want to implement in the short-term. The company may use the buyback scheme to open up stock options to employees or shareholders in the future if it is required, he said. Adnoc Distribution, the UAE's biggest fuel and convenience retailer, listed 10 per cent of its shares in 2017 on the Abu Dhabi Securities Exchange and its parent Adnoc retains the option of further selling down its stake should it chose to do so, Mr Carey said, when asked if the firm would consider increasing its free float on the market. “At the time of the IPO, Adnoc said we are willing to sell up to 30 per cent of the company and that hasn’t changed,” he said. “If Adnoc decided to sell down, we wouldn’t have any shortage of takers." The company, which is following a three-to-five-year strategic growth plan, is not inclined to follow some of its competitors that have separated their convenience retail from fuel businesses, branching out into stand-alone convenience stores. The company will pursue its existing business model for at least another couple of years, Mr Carey said, keeping fuel and convenience retailing on one site. “I would say over the next two years our plan is to build on the business model that we have,” he noted. “Beyond that, whether we would go into separate retailing business is something that we have yet to decide.” Adnoc Distribution on Thursday also received shareholders’ approval to increase its dividend for fiscal year 2019 to Dh2.39 billion, a 63 per cent increase on 2018’s dividend of Dh1.47bn. They also approved boosting the dividend for 2020 to Dh2.57bn, 75 per cent higher from 2018 and paying a minimum of 75 per cent of distributable profit from 2021 onwards.

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Mr Carey said the trajectory of growth seen in 2018 is very encouraging and non-fuel and convenience areas of the business have “considerable headroom for growth”.

It expects to replicate 2018’s $50 million figure for cost savings this year as it increases its capex by about 42 per cent to $300m in 2019 to pursue further growth. Adnoc Distribution, which plans to open up to 20 stations in Dubai and Saudi Arabia this year, is eyeing other GCC markets to expand its footprint outside the UAE, Mr Carey said. Source: The National Back to Index

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DEVELOPER MIRAL REVEALS YAS BAY CONSTRUCTION PROGRESS Saturday, April 06, 2019 Yas Bay will transform the southern end of Yas Island and contribute towards plan to develop top global destination for entertainment and leisure The development will ultimately encompass Yas Bay Arena, The Residences,, a promenade and pier with 37 cafés and restaurants, 19 retail outlets, beach club, and two hotels, as well as being the new hub for Abu Dhabi Media Zone, twofour54. Developer Miral has revealed a series of construction updates at Yas Bay, Yas Island’s upcoming waterfront community. Once complete, Yas Bay will transform the southern end of Yas Island and contribute towards Miral’s ambition of making it one of the top global destinations for entertainment and leisure. Yas Bay’s construction updates include the completion of concrete works on the first hotel, operated by Hilton, and road infrastructure and landscaping of the public realm, parks and promenade. The development will ultimately encompass Yas Bay Arena, The Residences, which forecasts 15,000 residents, a promenade and pier with 37 cafés and restaurants, 19 retail outlets, beach club, and two hotels, as well as being the new hub for Abu Dhabi Media Zone, twofour54. During his latest visit to the site, Miral’s CEO, Mohamed Abdalla Al Zaabi, witnessed the completion of Yas Bay’s most recent development milestones, including the final pour of concrete for topping out of the first hotel. “As construction of Yas Bay progresses, we get closer to seeing what promises to be Abu Dhabi’s most vivid and energetic community come to life on Yas Island,” said Al Zaabi. “These milestones will prove attractive to investors who can now join Miral on its journey as we deliver the ultimate waterfront experience.” Yas Bay also includes ready-for-development land plots comprising residential, retail, and school usage. “We have already started conversations with potential partners, and look forward to working closely with investors who are eager to contribute to the unique experiences we’re creating within Yas Bay,” he added. In March, Yas Bay Arena marked a major construction milestone with the installation of the largest roof truss. Source: Arabian Business Back to Index

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NEW ABU DHABI ENTERTAINMENT HUB SET FOR 2020 COMPLETION Friday, April 05, 2019 Al Qana waterfront project will offer waterside eateries, cinema, the Middle East's largest aquarium, marina, a wellness hub and outdoor skatepark Al Qana is located on the historic natural Khor Al Maqta, the waterway bordering the mainland close to the Sheikh Zayed Grand Mosque and will dedicate over 50 percent of the leasable area being assigned to entertainment. Al Barakah International Investment (BII) has announced that its Al Qana wterfront project in Abu Dhabi is on course for completion in the fourth quarter of 2020. Al Qana, which spans over 2.4km and will offer waterside eateries, cinema, the Middle East’s largest aquarium, marina, a wellness hub and outdoor skatepark, is being developed as part of a public-private partnership between BII and Abu Dhabi Municipality. Al Qana is located on the historic natural Khor Al Maqta, the waterway bordering the mainland close to the Sheikh Zayed Grand Mosque and will dedicate over 50 percent of the leasable area being assigned to entertainment. To underline this, Al Qana has brought on board a key partner, The National Aquarium of Abu Dhabi, which will be the largest of its kind in the Middle East. Moataz Mashal, managing director of BII, said in a statement: "In line with the capital's vision for 2030, this new landmark destination will play a key role in supporting the government to realise its vision of enhancing Abu Dhabi’s status as one the world’s most popular destinations for business, leisure, lifestyle and entertainment. "Al Qana will offer a new lifestyle for residents through exciting dining destinations and convenient facilities, whilst also being an attractive place for tourists to visit, in close proximity to many of the most famous landmarks in the capital.” Stuart Gissing, general manager of Al Qana, added: "Since the launch of the project, our team of experts have been working closely with the authorities and our partners to ensure a unique, vibrant mix of complementary commercial services and facilities that bolster the value to investors, tenants and customers. “We have been looking for the best experts in their fields and made key hires as we remain committed to create a quality multi-excitement destination that will keep pace with ever growing need to offer entertainment and memorable experiences at every level, with the requirements of visitors, whilst also reflecting Abu Dhabi’s multicultural society.” Al Qana is the first build-operate-transfer model implemented by the Abu Dhabi Municipality. International Construction Contracting Company is the lead contractor of the project. Source: Arabian Business Back to Index

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ABU DHABI REVEALS PLAN FOR MEGA NURSERY TO BOOST CONSERVATION Friday, April 05, 2019 Set to commence production by 2020, the facility will serve as a lab forresearch projects and germination experiments The nursery will also collect and store plant seeds to create a nucleus for use in larger projects at the Abu Dhabi Plant Genetic Resources Centre. (Photo for illustrative purposes only) The Environment Agency – Abu Dhabi (EAD) has announced plans to establish a new central nursery for local plants in Abu Dhabi with a production capacity of one million seedlings per year. Set to commence production by 2020, the facility will serve as a lab for EAD’s research projects and conduct germination experiments on key native wild plant species found across the emirate. The nursery will also collect and store plant seeds to create a nucleus for use in larger projects at the Abu Dhabi Plant Genetic Resources Centre, which will act as a repository for the seeds of over 700 wild plant species found in the UAE. EAD said the conservation of native wild plant species is an essential pillar of its mandate, with local plants in Abu Dhabi making up 58 percent of the country’s wild flora, a statement said. "Unregulated and uncoordinated seed collection in Abu Dhabi is one of the main challenges in local plant conservation," said Dr Sheikha Salem Al Dhaheri, acting secretary-general of EAD. "Such unsustainable practices adversely impact the target species as often ignore correct protocols are not followed, and extraction is far beyond the natural regeneration capabilities of the species," she said. According to UAE Federal Law No.24 of 1999, it is prohibited to cut wild plants, uproot them or collect them illegally. According to the agency, there are currently 436 species of local native wild flora. Al Dhaheri added: "Local plants benefit human lives in multiple ways - as vital sources of food and medicine, for nitrogen fixation, to stabilise sand dunes and prevent erosion, all while enriching the region’s biodiversity. It is unfortunate that these plants are also impacted by unregulated tourism, overgrazing and the illegal cutting and trading of wood, which has resulted in the decline of some key species, as well as the overall degradation of local habitats." EAD said it is currently managing the Baynounah Nursery in the Al Dhafra region that has a production capacity of 300,000 seedlings per year. The agency uses these seedlings in its initiatives to rehabilitate wild habitats. The nursery currently stores the seeds of 58 species of native wild plants, such as the Little Dwarf Palm, Umbrella Thorn Acacia, Ghaf, Oriental Cherry, White Saxaul. Source: Arabian Business Back to Index

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ABU DHABI FUND FOR DEVELOPMENT FACILITATED DH16.5BN OF DEALS FOR UAE COMPANIES Monday, April 01, 2019 The Abu Dhabi Fund for Development, a government-funded aid finance institution, has facilitated Dh16.5 billion of business deals for UAE companies in developing countries in the past decade. The fund has partnered with 20 UAE-based companies on development projects overseas during the 10-year period, and provided funding including loans and Abu Dhabi government-awarded grants to other partners in developing countries to address economic challenges and improve standard of living, ADFD said in a statement on Monday. Industry sectors in which ADFD-financed deals have been stuck include infrastructure, health, education and renewable energy, the statement added. In particular, the fund has sought to create investment opportunities in developing countries to build economic sustainability. The fund has amended its tendering system for projects financed by ADFD-managed government grants, the statement added. In line with new directives from Sheikh Mansour bin Zayed, Deputy Prime Minister of the UAE, Minister of Presidential Affairs and ADFD chairman, an up to 10 per cent preference will be given to national UAE companies that pass the technical assessment and financial qualification stage outlined in the fund’s tender policy. This "will help enhance their competitiveness in line with the Abu Dhabi Economic Vision 2030, which aims to build a diversified and sustainable economy and ensure a balanced approach to economic and social development,” said Mohammed Al Suwaidi, director general of ADFD. “The fund seeks to strengthen the presence of UAE companies in developing countries through establishing long- term strategic relationships, especially with economies that enjoy competitive advantages." A total of 20 UAE companies have worked or are working on our projects, “and we look forward to an increase in participation in future”, he said. In 2013, the UAE passed a law increasing the fund’s capital to Dh16bn and expanding its activities to include assisting private sector economic development projects in the UAE and overseas. ADFD is also working to establish a national export financing programme to provide financing and guarantee facilities to boost export rates and open new markets, the statement said. Source: The National Back to Index

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PROPERTY FINDER BECOMES LARGEST SHAREHOLDER IN TURKISH REAL ESTATE PORTAL Tuesday, April 02, 2019 Property Finder increased its stake in Turkish property marketing website Zingat to almost 40 per cent from 17 per cent, as it looks to expand its operations in the Middle East, North Africa and Turkey (Menat). “The partnership with Zingat has proved hugely successful, and has reinforced our confidence in the Turkish market and its economy,” said Michael Lahyani, chief executive and founder of real estate portal Property Founder. The stake increase “aligns with our vision of expanding market share in Menat”, Mr Lahyani added, and makes Property Finder the largest shareholder in Zingat, Turkey’s fastest growing property platform. The value of the deal was not disclosed. The deal is Property Finder’s first since the close of its $120 million investment round in November, led by US private equity company General Atlantic. As part of the Zingat transaction, General Atlantic’s vice president Tom Hussey will join Zingat’s board as a director. Zingat was founded in 2015 by Ahmet Kayhan and Mehmet Erkek – the entrepreneurs who also set up Dubai real estate data provider Reidin – alongside Turkish conglomerate Doguş Group. Property Finder’s latest investment is intended to facilitate co-operation between the two property portals, Property Finder said. Zingat will invest the funding into the development of new products and resources to improve the real estate marketing and sales experience for consumers, agents and property developers. “In the coming years we will invest most of the new funds into extending and improving our business, products and services to help our clients find the right properties more easily, and real estate professionals work more efficiently,” said Zingat’s co-founder and chief executive Mr Kayhan. Property Finder operates in seven markets across Mena, including the UAE, Bahrain, Saudi Arabia, Lebanon, Egypt, Morocco and Qatar, in addition to the significant stake in Zingat. Source: The National Back to Index

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LEBANESE BANKER WINS APPROVAL TO BUILD LONDON'S CONTROVERSIAL TULIP TOWER Thursday, April 04, 2019 The Tulip was designed by Foster + Partners for the Lebanese Brazalian billionaire Joseph Safra, who also owns London's famous Gherkin building The Tulip tower will feature a multi-deck glass viewing platform with a bar and restaurant, rotating pods on its exterior, and an education centre for up to 20,000 children a year. Construction is scheduled to start next year and end by 2025. The City of London’s governing body has approved plans for the capital’s second-tallest building, a 305m-high viewing tower, dubbed the ’Tulip’. The building, designed by Foster + Partners for the Lebanese Brazalian billionaire Joseph Safra – who also owns London’s famous Gherkin building – has stirred up controversy. The Tulip has faced 46 formal objections and an unprecedented intervention by Duncan Wilson, the CEO of Historic England. The building – which Wilson describes as ‘a lift shaft with a bulge on top’ – “will cause permanent and irreversible damage to the setting of the Tower of London, and in turn, the image and identity of the capital,” he said. The Tulip has also faced opposition from Historic Royal Palaces, which called the scheme “a fundamental and irreversible mistake” that would seriously harm views of the Tower of London, a Unesco world heritage site. The City’s own public realm department in February said that the old roads surrounding the site at 20 Bury Street could not handle an influx of 1.2 million visitors a year. Nonetheless, the landmark was approved after a ‘robust’ debate by the City of London Corporation’s planning committee, said Chris Hayward, the chairman. The tower will feature a multi-deck glass viewing platform with a bar and restaurant, rotating pods on its exterior, and an education centre for up to 20,000 children a year. Construction is scheduled to start next year and end by 2025. Economic impact A spokesperson for the Tulip Project said: “As part of the planning application process, The Tulip Project submitted an Economic Impact Assessment by Deloitte, which estimated that The Tulip would offer economic benefits to London of nearly £1 billion in total monetised value by 2045 and 600 additional permanent full time jobs during 20 years of operations.” According to an independent representative poll of Londoners, conducted by ComRes, two thirds of London adults (65 per cent) think that The Tulip would be an attractive addition to the London skyline, while 69 per cent believe that the proposed development would have a positive impact on ‘the City’s attractiveness as a visitor and cultural destination’.

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The Tulip spokesperson added: “During the planning application process, our team engaged with a significant number of local stakeholders including heritage bodies, schools, businesses and residents in the City and neighbouring boroughs. "These discussions, together with the views of the planning officers, have allowed us to tailor the proposal to meet their needs and concerns." The proposal will now be subject to review by the Mayor of London, who has 14 days to consider the City’s positive decision in the wider context of London’s role as a leading global capital. A City Hall spokesperson told Arabian Business: “The mayor recognises that there are a range of views regarding this application and will consider the scheme on its merits in due course.” Source: Arabian Business Back to Index

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

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

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

John Allen BSc MRICS • Valuation Services

Executive 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 & 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.

BUILDING CONSULTANCY The Building Consultancy Team at Asteco have a wealth of experience supporting their Clients throughout all stages of the built asset lifecycle. Each of the team’s highly trained Surveyors have an in- depth knowledge of construction technology, building pathology and effective project management methods

which enable us to provide our Clients with a Comprehensive Building Consultancy Service.