NEWS BRIEF 30 SU NDAY 24 July 2016

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

REAL ESTATE NEWS

UAE

WHY EXPAT RESIDENTS PREFER TO RENT THAN OWN IN UAE UAE HOTELIERS COUNT ON MARVEL, LEGO AND BOLLYWOOD THEME PARKS OPENING FOR YEAR-ENDING BOOST UAE RESIDENTS PREFER TO RENT THAN BUY HOMES, TURNED OFF BY HIGH PRICES – PROPERTYFINDER SURVEY THIS UAE EMIRATE OFFERS STUDIO UNIT FOR DH917 PER MONTH

DUBAI SOBHA GROUP GEARS UP FOR DUBAI’S NEXT PROPERTY MARKET UPSWING BUSINESS BAY, MARINA TOP BUY FAVOURITES IN DUBAI DUBAI HOLDING, EMAAR TO REVIVE WORLD'S LONGEST LUXURY HOTEL CHAIN WHERE YOU CAN RENT A UNIT FOR DH18,000 A YEAR IN SHARJAH RTA TO LAUNCH ALL-IN-ONE TRANSPORT PAYMENT APP DUBAI HOME SALES ON A REBOUND DUBAI PROPERTY IS HOT INVESTMENT MORE DUBAI PROPERTY DEALS OVER FIRST SIX MONTHS – BUT TOTAL VALUE LOWER BREXIT TO DELAY DUBAI HOUSING MARKET RECOVERY, PROPERTY BROKER JLL SAYS DUBAI SPEEDS UP COLLECTION OF ARREARS FROM TENANTS WHO LOSE RENTAL DISPUTES DUBAI SOUTH TENDERS FOR EXPO 2020 SITES TO SPUR SALES OF AFFORDABLE HOMES ACTION GROUP UPGRADES DUBAI HEALTHCARE CITY HOTEL ASTECO MAKES SEVEN ASSOCIATE DIRECTOR PROMOTIONS

ABU DHABI ALDAR AWARDS DH440 WORTH OF CONTRACTS FOR AL NAREEL ISLAND AND AL MERIEF LUXURY PROJECTS WHO SHOULD BE FIRST TO MAKE CONTACT 60 DAYS BEFORE THE END OF AN ABU DHABI TENANCY CONTRACT?

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

REAL ESTATE NEWS

NORTHERN EMIRATES

SHARJAH RENT CONTRACT REGISTRATION FEE DOUBLED FROM AUGUST

GCC/INTERNATIONAL BUY INTO HIS PROJECT AND GET A ‘GOLDEN’ PASSPORT DUBAI RETAILER FOREVER ROSE TO OPEN HOTELS IN LONDON AND GCC

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

THIS UAE EMIRATE OFFERS STUDIO UNIT

FOR DH917 PER MONTH

Thursday, 21 July, 2016

Here is one thing that majority of UAE residents want across the emirate: Renting an apartment for less than Dh1,000 a month.

The second quarter 2016 report by Land Sterling, a property consultancy, reveals average annual rent for studio apartments in Fujairah range from Dh11,000 (Dh917 a month) to Dh22,000 (Dh1833), making it the cheapest in the country.

The report, however, mentions that rentals have gone up for studios in the emirate by 6.5 per cent in the second quarter compared to the first quarter 2016.

Studio rentals in Ajman remained stable, with rates starting from Dh18,000 per year, rising to Dh28,000 per year.

In Ras Al Khaimah, rentals for studio range from Dh18,000 to Dh30,000 a year, with rates increasing 4.3 per cent quarter-on-quarter.

A studio unit can be leased in Umm Al Quwain for Dh15,000 to Dh18,000 a year. The rates have jumped by 10 per cent, according to the report.

On Wednesday, Emirates 24|7 reported based on Land Sterling report that average rent for studio units in Sharjah had gone up by 4.2 per cent with annual rents from Dh18,000 to Dh32,000 a year.

In February 2016, Asteco, a real estate consultancy, reported that rents across most of the Northern Emirates had declined slightly during 2015 with the exception of Fujairah. Source: Emirates 24/7 Back to Index

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

ASTECO MAKES SEVEN ASSOCIATE DIRECTOR PROMOTIONS

Wednesday, 20 July, 2016

Asteco has promoted seven of its staff members to newly created associate director positions.

The UAE-based real estate services firm has also launched the Asteco Academy, which will be used as a training and development facility for brand franchisees.

The promotions and facility launch have been carried out as part of the company’s ‘people first’ initiative, which is designed to recognise the importance of employees and to grow its franchisee network.

John Stevens, managing director of Asteco, commented: “These are testing times, not only for the real estate sector, but for businesses in general.

“While we are seeing an increasing number of lay-offs and company restructuring in response to the bottoming out of the market and current economic challenges, Asteco believes that this is exactly the time when we need to invest in our greatest asset: our people.”

Asteco’s latest associate director appointments include: Tamer Chaaban from its property management department; Anne Marie Shein and Morgan Dalton from its asset management department; James Joughin from valuations; Julia Knibbs from research and consultancy; Melnora Francisco Burayag from finance; and Nick White from owners association management services.

All seven of the new associate directors have been given greater autonomy with regards to budgets, and will act as figureheads within their respective departments, according to Asteco. The promoted individuals will report to the firm’s board.

“With close to a cumulative century of industry experience both here and internationally, the team is truly at the vanguard of Asteco’s strategic development, and this confidence and acknowledgement of these individuals’ professional skills is essential to our ability to plan for the future and maintain our position as the Middle East’s largest real estate consultancy practice,” said Stevens.

“The route to associate director has now been clearly defined, and we can see the motivation that this has given other colleagues in the company who didn’t meet the requirements to be considered for an associate this year, but are working to ensure that they achieve [them] during the next review process,” he concluded. Source: Emirates 24/7 Back to Index

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

WHERE YOU CAN RENT A UNIT FOR

DH18,000 A YEAR IN SHARJAH

Wednesday, 20 July, 2016

The average rent for studio units in Sharjah have gone up by 4.2 per cent in the second quarter compared to the first quarter of 2016 despite the average minimum rent being Dh18,000 a year, according to property consultancy Land Sterling.

Al Muwaileh is the cheapest locality to rent in the emirate, with average rents ranging between Dh18,000 and Dh27,000 a year. In Al Khan, Al Majaz, Al Qasimiyah and Al Nahda, annual rents range from Dh23,000 to Dh30,000; Dh25,000 to Dh35,000; Dh20,000 to Dh30,000 and Dh25,000 to Dh35,000, respectively.

The cheapest three-bed units is available in Al Qasimiyah, with rents between Dh40,000 and Dh80,000 per year.

The costliest area is Al Majaz where rents range from Dh50,000 to Dh110,000 a year. In Al Khan, Al Nahda and Al Muwaileh, annual lease rate range between Dh55,000 and Dh90,000; Dh50,000 and Dh85,000 and Dh60,000 and Dh65,000.

Asteco, a real estate consultancy, reported in February 2017 that new supply of housing units in Sharjah coupled with a lower inflow of residents from Dubai will put downward rental pressure on lower quality apartment towers.

“Rental demand is expected to be stagnant in Sharjah as a reduction in prices in neighbouring Dubai will lead to a lower than usual inflow of new residents, which may be worsened by reduced government spending and potential job cuts,” the consultancy had said.

Emirates 24|7 reported on Monday that Sharjah Municipality had doubled the residential rent contract attesting fee from 2 per cent to 4 per cent of the annual rent from August 1, 2016.

The civic body said: “Pursuant to the Executive Council Decision No 26 of 2016 concerning the modification of the fees schedule of tenancy contract attest in Sharjah, the new fee structure will come into force as of 1/8/2016 to be as follows, residential contract: 4 per cent of annual rent, commercial contracts: 5 per cent of annual rent and investment contracts: 3 per cent of annual rent.”

Rent Law

The Law No. 2 of 2007, regulating the relations between landlords and tenants, details the rights of the parties, which are as follows:

# Article 9 stipulates that the landlord should guarantee the property is given on rent as per the specifications mentioned in the contract and in case any amenities found lacking, the tenant has the right to claim its addition or maintenance. It also mentions that landlords should carry out maintenance of the leased properties, unless both parties agreed otherwise.

# Article 11A states that the landlord is not entitled to increase the rent under a lease prior to the expiry of 3 years from the signing of the lease.

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

# Article 11B provides that the increase mentioned in Article 11A shall be according to the market rent of comparable properties and once decided will be applicable to that property for 2 consecutive years.

If the revised rental value cannot be agreed upon by the landlord and tenant, they may refer it to the Rental Committee who will settle the dispute and place a rental value on the property in question.

# Article 12 mentions the landlord will have no right to ask the tenant to vacate the property before the expiry of a period of three years from the first signing of the contract unless the tenant is refusing to pay the rent.

# Article 15A provides for the criteria which the Rental Committee will consider in determining the rental value. These include (i) the location of the property, (ii) number of floors in the property, (iii) the level of the property within the building, (iv) the finishes to the property, (v) services within the building, (vi) the age of the building according to the completion certificate and (vii) the area of the building. Source: Emirates24/7 Back to Index

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

SOBHA GROUP GEARS UP FOR DUBAI’S NEXT PROPERTY MARKET UPSWING

Sunday, 24 July, 2016

Dubai-based Sobha Group is on the mark to deliver the first phase of residential units in the Dh14.68-billion Sobha Hartland in Mohammed bin Rashid City in December 2017, as it gears up to expected recovery in the emirate’s realty market.

“The real estate market is a cyclical and we have been in negative cycle for two years, which started in the second half of 2014. By the beginning of 2017, the market will change and we expect that the positive cycle will last for around 24 to 30 months,” company Chairman PNC Menon said.

“When the market picks up, there will be a herd mentality among investors who will end up picking all available apartments," he added.

The first phase will comprise 70 villas and 200 apartments, while the community will house around 6,000 residential units.

The 8-million-square feet development includes two international schools (of which Hartland International School is up and running), nurseries, healthcare facilities, hotel, a mall and a clubhouse.

The community centre is expected to open in 2019, while work has stared on the hotel, which will is expected to be completed by December 2017. The entire project is slated to be handed over in 2021.

New project

Menon revealed that the company will soon announce a "budget housing" project in Dubai, with units ranging from 700 to 800 square feet and priced at around Dh1,000 per square feet.

“The project will be larger than District One in terms of land area,” the chairman revealed. Source: Emirates 24/7 Back to Index

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

BUSINESS BAY, MARINA TOP BUY FAVOURITES IN DUBAI

Tuesday, 19 July, 2016

Total real estate transactions in Dubai touched Dh113 billion in the first six months of 2016 after recording Dh55 billion in the first quarter.

In a transaction report, issued on Tuesday, Dubai Land Department (DLD) said a total of 28,251 sales, mortgages and other transactions were registered during the period with property sales and mortgages – both contributing 43 per cent individually – amounting to Dh48.715 billion (over 20,000 transactions) and Dh48.366 billion (6391 transactions), respectively. Another 1,844 transactions totalled Dh16 billion.

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

Sales relating to land transactions touched Dh27 billion from 4,753 transactions, while mortgages for land registered 2,377 transactions of Dh42.751 billion. Other transactions (422) were valued at Dh14.399 billion, as total land transactions reached Dh84 billion.

In terms of the total value of transactions by buildings and units, 20,699 transactions were registered, valued at Dh28 billion. Building sales reached 1,125 transactions worth Dh3 billion, while unit sales crossed Dh24 billion from 19,033 deals. On the other hand, 488 mortgage transactions were completed for buildings valued at over Dh1 billion, and unit mortgage deals numbered 3,526 worth Dh4.5 billion.

Business Bay took first place in the list of unit sales, totalling 1,643 transactions of Dh2.349 billion, followed by Dubai Marina with 1,392 transactions worth Dh2.893 billion. Warsan 1 came in at third with 999 transactions worth Dh454 million.

Seeh Shuaib 1 was the most attractive for investors, with the value transactions from land sales reaching Dh2.364 billion through 1,227 deals. This was followed by Sheikh Mohammed Bin Rashid Gardens with a total of 406 deals of Dh1.971 billion, followed by Al Yafra 3 with 387 transactions of Dh622 million.

On the growth track

DLD Director-General Sultan Butti Bin Merjen said: “Dubai has achieved a high percentage of growth, with the value and the number of real estate transactions, which provides reassurance about the positive development that the property market is witnessing, and proves the attractiveness of the emirate’s real estate. Such periodic reports ascertain a number of facts which substantiate DLD’s commitment to high standards of transparency and credibility, which helps developers and investors to formulate long-term strategies.

“These figures substantiate Dubai’s position as a foremost attractive destination for investments across the region and around the world,” he added. Source: Emirates 24/7 Back to Index

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

DUBAI HOLDING, EMAAR TO REVIVE

WORLD'S LONGEST LUXURY HOTEL CHAIN

Tuesday, 19 July, 2016

Bawadi, announced as the largest hospitality and leisure development in the world in 2007, is being revived in Dubai, Dubai Holding Chief Executive Officer told Emirates 24|7.

“The Bawadi project, a joint venture between Dubai Holding and Emaar, is currently in its early stages and progress will be communicated in due course,” Fadel Al Ali said.

No other details were shared.

Launched in October 2007, Wam reported the Dh60-billion signature development would be an equally-owned venture wherein Bawadi, a member of Tatweer, owned by Dubai Holding, would contribute 70 million square feet of land (worth Dh3.85 billion) in lieu of its ownership interest, whilst Emaar would contribute Dh3.85 billion in cash to the joint venture.

Bawadi in Dubailand, located in close proximity to Arabian Ranches, was envisaged as the longest chain of luxury hotels in the world along a 10-kilometre stretch which will add 51 luxury hotels and more than 60,000 rooms to Dubai. The highlight was the 6,500-room Asia Asia Hotel & Resort.

The project was to have a total built-up area of 60 million square feet, 2.7 million square feet of commercial space and a shopping mall and high street retail properties with a total of 3.2 million square feet of retail. The Boulevard, Wam said, was to be fringed by six hotels offering 5,150 keys and 1,200 serviced apartments.

The project’s residential community was to have 18,000 residences with green parks and lakes being an integral part of the development. It was put on hold during the global financial crisis.

Currently, Dubai Holding and Emaar are jointly developing Dubai Creek Harbour, which was relaunched in 2014, which will house the 928-metre 'The Tower', the tallest tower in the world. Source: Emirates 24/7 Back to Index

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

SHARJAH RENT CONTRACT REGISTRATION FEE DOUBLED FROM AUGUST

Monday, 18 July, 2016

Sharjah Municipality has doubled the residential rent contract attesting fee from 2 per cent to 4 per cent of the annual rent from August 1, 2016.

It added that fees of lease agreement documents (of all types) will be Dh100, up from the existing Dh50.

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

The municipality also called upon all real estate offices licensed to operate in the emirate to register with the municipality's e-tenancy contract service to get tenancy contracts attested through this service.

"Please note that the renewal of the residential and commercial tenancy contracts will no longer be attested for real estate offices through the traditional method, as the attestation will only be done through the electronic system as of September 1, 2016," it said.

The real estate offices will be held responsible for any legal consequences that may arise from their failure to register in the e-tenancy contract service, the municipality said. Source: Emirates 24/7 Back to Index

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

WHY EXPAT RESIDENTS PREFER TO RENT THAN OWN IN UAE

Monday, 18 July, 2016

A propertyfinder.com survey found that only 30 per cent of residents bought property in the country, while the remaining 70 per cent were still renting

High deposit requirements, fees, mortgage cap and stringent lending policies in the UAE are stopping the market from maturing like its Western counterparts. (Supplied)

Despite staying in the UAE for over five years, a majority of expatriate residents have not purchased properties, citing lack of affordability and higher down payment.

A propertyfinder.com survey found that only 30 per cent of residents had bought property in the country, while the remaining 70 per cent were still renting.

This is contrary to more developed and established parts of the world such as the United Kingdom, specifically England and Wales, where the figures are the exact reverse, with 64 per cent owning and only 36 per cent renting.

So why are residents choosing to pay rent?

Sixty-nine per cent surveyed said prices were “too high” and they couldn’t raise the necessary deposit or were unable to qualify for the loan amount required to borrow despite property enquiries being the highest since 2014.

The UAE mortgage cap regulations stipulate property buyers pay a minimum of a 25 per cent deposit for properties under Dh5 million and 35 per cent above Dh5 million. This is the single biggest obstacle for those hoping to get into the market.

For example, to buy a ready unit of Dh1 million, a resident will have to shell out Dh250,000; pay Dh40,000 to Dubai Land Department for title deed registration, Dh4,000 to registration trustee, Dh1,875 as mortgage registration fee and 2 per cent agent commission of Dh20,000; totalling Dh315,875.

On off-plan purchases, the bank offers only 50 per cent finance, which means the buyer will have to pay the 50 per cent till handover and then apply for a home loan. As of now, only a few banks offer home finance to residents with salaries as low as Dh10,000 per month.

Lukman Hajje, Propertyfinder Group Chief Commercial Officer, said: “It is clear that the want is there, but the high deposit requirements, fees, mortgage cap and stringent lending policies are stopping the market from maturing like its Western counterparts, and if we can overcome these points – I can really see a bright future for the UAE property transaction market.’’

Emirates 24|7 reported that investment in the Dubai real estate market rose by a whopping 92 per cent in April and May combined, taking total investment in the sector to Dh48 billion in the first five months of 2016.

Statistics have not been released on the number of expatriate residents that have invested in the property market though the number of foreign nationalities investing in the sector are over 127.

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

Source: Emirates 24/7

Back to Index

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

RTA TO LAUNCH ALL-IN-ONE TRANSPORT PAYMENT APP

Sunday, 23 July, 2016

Mattar Al Tayer, Director-General and Chairman of the Board of Executive Directors of Roads and Transport Authority (RTA) revealed RTA’s intention to launch an Integrated Mobility Platform in Dubai, enabling customers an easy access to all mass transit systems through a single window (smart app).

A common booking and payment app for all modes of transports, including Monorail, Dubai Trolley as well as e- hail or mobile app-based taxi services, is likely soon as the Roads and Transport Authority (RTA) announced the launch of an Integrated Mobility Platform (IMP) on Saturday.

Mattar Al Tayer, director-general and chairman of the Board of Executive Directors of RTA, revealed that the IMP will give customers easy access to all mass transit systems through a single window or smart app.

The RTA’s multi-modal transit systems, including metro, tram, buses and marine transit means, already have a common fare payment system called Nol, which has also been introduced on taxis as a payment option.

However, the Monorail in Palm Jumeirah, Dubai Trolley in Downtown Dubai as well as private limousine services and the e-hail services like Uber and Careem have independent fare collection systems.

These private modes of transports also have their own booking systems.

This is the first time the RTA has announced integration of private transport modes with the Nol platform, which will come into effect in phases by the end of next year.

On Saturday, the RTA announced the system integration will be done in phases, with the first phase covering Monorail and Dubai Trolley, while in the second phase taxis services such as Uber and Careem will be integrated through an app, enabling the user to book the service and pay the fare.

“The Integrated Mobility Platform project comprises a system for organisational monitoring, full integration with all RTA’s mass transit means, integrating with services provided by other entities in Dubai, organising electronic taxi booking services and running limo services,” said Al Tayer. He added: “The project will offer the user the available mobility options, and enable the user to plan the journey and arrange the booking and payment in a smooth and integrated manner.”

The project will be undertaken in several phases and is expected to be concluded in 2017.

Phase I includes developing the technological infrastructure of the platform, integrating RTA transit means and integrating limo services of the Dubai Taxi Corporation. It will also include providing information about bikes, cycling tracks and racks, starting the issuance of operation permits for the electronic taxi booking services such as Uber, Careem and others, and developing a system for organisational monitoring of limousine services.

Phase II covers integrating electronic taxi booking services, and establishing agreements with transport partners and integrating them in a partial manner with the platform.

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

Phase III is concerned with holding agreements with most stakeholders to integrate them in the platform, and establishing the payment process offered by the platform using the Nol card.

Earlier this year, RTA introduced new regulations for app-based taxi services, virtually legalising the increasingly popular networks like Uber and Careem.

Until recently, such companies could only operate with an agreement with a licensed limo company using licensed drivers and often their services faced criticism by their ‘legal’ competitors, while also coming under the scanner for certain criminal incidents elsewhere in the world.

Highlighting these issues, Adel Shakeri, director of Transportation Technology at RTA, told Gulf News recently that RTA wants to ensure that all the transport services are safe and secure.

“We are monitoring closely how well we can regulate all the services and how the services can be improved, particularly in the wake of certain incidents concerning app-based taxis in other parts of the world. Safety and security are our highest priorities and we will not compromise on that,” said Shakeri.

He added that having an integrated payment and booking platform is as much about offering people ease as it is about keeping things under control. Source: Gulf News Back to Index

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

DUBAI HOME SALES ON A REBOUND

Sunday, 23 July, 2016

The value and number of homes changing hands in Dubai’s most established neighbourhoods doubled in the second quarter compared to the final three months of last year, which was the worst period of activity for the emirate’s property market since its last peak two years ago.

The data from Reidin, which has been analysed by the high-end broker Luxhabitat, suggests that the property market has already hit bottom and is on the way up again.

Luxhabitat looked at apartment and villa sales in Arabian Ranches, Downtown Dubai, DIFC, Dubai Marina, Emirates Hills, Jumeirah, Jumeirah Beach Residence, Jumeirah Islands, Palm Jumeirah, The Lakes, Springs and Meadows, and Victory Heights.

The figures show that the total number of homes sold in the city’s most-established freehold areas increased to 1,342 in the second quarter of this year, up from 1,215 in the first three months and more than twice the 607 recorded in the fourth quarter of last year.

Luxhabitat also found that the total value of sales taking place in the areas monitored in the second quarter of this year was more than Dh3.2 billion, flat on the first quarter but double the low of Dh1.6bn in the final three months of last year.

The increases came after seven successive quarters of falling sales numbers as house prices in Dubai continued to slump on a drop in the global oil price and an increase in the value of the US dollar, to which the UAE dirham is linked.

"Recently, people seem to be more convicted that the next few months will be their optimum time to buy," said Sally Ann Ghai, a luxury sales broker at Luxhabitat specialising in the Emirates Living area.

"Over the last two years we have seen a high amount of window shopping, with buyers delaying to pull the trigger on a purchase because of uncertainty over the potential for even cheaper buys if they hang on long enough," she said.

"However, that would strongly suggest that there is an awful lot of pent-up demand, which is now gradually converting into market activity."

Earlier this week data from Dubai Land Department reported that the number of transactions taking place during the first six months of this year increased by more than a fifth compared to the same period a year earlier, rising to 28,251 sales, mortgages and other transactions.

Faisal Durrani, the head of research at Cluttons, said that after analysing Reidin data for the same areas he did not reach the same conclusions.

"We certainly do not think that Dubai has reached the bottom of the market even in the most prime areas," he said.

"We expect more gradual softening of the market for some time – perhaps another six to twelve months."

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

On Monday, the broker JLL said it had revised its forecast for the recovery of the Dubai property market to the start of next year from the middle of this year after it said that Britain’s vote to leave the European Union would deter British buyers – the third largest group of foreign investors in the UAE – from purchasing homes in the city. Source: The National Back to Index

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

DUBAI PROPERTY IS HOT INVESTMENT

Sunday, 23 July, 2016

Dubai’s real estate market is becoming an attractive proposition to a multitude of international investors.

According to data from the Dubai Land Department (DLD), released by its Real Estate Research and Studies Department, total investment transactions for the first half of the year reached Dh57 billion from 26,000 investors made up of 149 different nationalities.

Leading the property investors were buyers from the GCC, contributing Dh22bn to Dubai’s property market covering 8,000 transactions, just over a quarter of the total number. Of this, Emirati investment provided the lion’s share, with total transactions reaching Dh14.5bn from 4,543 investments, while GCC investors made up Dh7.5bn from 3,656 transactions.

While Dubai’s real estate market has suffered a string of calls in recent months citing its bottom, the DLD data suggests many still see opportunity in it.

The total value of foreign investment into Dubai property reached more than Dh28bn, almost half the value of transactions, drawn from more than half of the investments – 14,314 investments out of the 26,000 were from foreigners.

"The Dubai real estate market has managed to maintain its robust appeal this year," said Sultan Butti bin Merjen, the director general of the DLD. He said it is now emerging as one of the foremost property investment destinations in the world. "It has been bolstered by the decline in some regional economies and serious challenges faced by other countries around the globe," he said, adding that the diversity of the investor base reflects the quality and trust that investors place in Dubai’s economy.

Indian investors led the way in the foreign investor field, bringing in more than Dh7bn worth of property transactions to the emirate from just 3,656 transactions.

The British were second with Dh4bn in investments, while Pakistanis were third with Dh3bn.

"I’m surprised to see GCC nationals and Emiratis so high on the list," said Paul Clark, a real estate agent for Luxhabitat. "Generally GCC buyers are in the market for whole floors of a tower or several plots on the Palm." However, Mr Clark says the biggest absence on the list is the Russian investor.

"At one point Russians must have owned at least 80 per cent of the real estate on Palm Jumeirah," he added. Source: The National Back to Index

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

ACTION GROUP UPGRADES DUBAI HEALTHCARE CITY HOTEL

Sunday, 21 July, 2016

Kuwait-based Action Group has upgraded its latest Dubai hotel project to a four-star property on expected demand from medical tourists to the emirate.

It plans to invest US$56 million in the Dubai Healthcare City site.

The company’s subsidiary, Action Hotels, will own the property, which will now be operated by AccorHotels’ Novotel brand as a 220-room hotel. Earlier scheduled to open as a three-star property this year, the construction is now scheduled to begin next month with the hotel opening in 2018.

The 26,312 square feet plot of land was acquired for $16m from Dubai Healthcare City and is jointly owned by Action Hotels and Sheikh Mubarak Al Sabah, its founder and non-executive chairman.

Dubai Healthcare City and its surrounding area currently has five hospitals with another scheduled to open in 2018.

"We did a feasibility study and found that the economics of a four-star, full-service property is better in that area than a three-star property as there are only five-star hotels in the area," according to Alain Debare, the chief executive of the London AIM-listed Action Hotels. "We want to tap into medical tourism and the Oud Metha area with the government and corporate offices."

The Dubai Health Authority has set a target of 500,000 medical tourists by 2020, up from 107,500 in 2012.

Initially planning to develop the hotel on a leasehold basis, the company said the project would be funded through a mix of equity and bank financing of about $35.2m.

This will be Action Hotels’ first property in Dubai.

It also wants to get the benefit of the Dubai government’s initiative, announced in 2013, to waive the 10 per cent municipality fee levied on daily room rates if the construction permit is granted by December 2017.

Despite the supply of new hotel rooms in Dubai, Action Hotels is confident of the four-star segment’s buoyancy.

"The pressure on room rates is for the five-star hotels mainly as there is a real gap in the four-star market," he said.

Action Hotels opened its first property in the UAE in Sharjah last August with 168 rooms. A Staybridge Suites in Abu Dhabi is expected in 2017 with 112 rooms, and a Tulip Inn is expected in Ras Al Khaimah this month with 104 rooms. Source: The National Back to Index

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

ALDAR AWARDS DH440 WORTH OF CONTRACTS FOR AL NAREEL ISLAND AND

AL MERIEF LUXURY PROJECTS

Wednesday, 20 July, 2016

Aldar, Abu Dhabi’s largest listed property developer, has awarded construction contracts worth Dh440 million.

The developer said yesterday the Abu Dhabi contractor National Projects and Construction had started work last Thursday on its Nareel Island project in Al Bateen, and Al Merief in Khalifa City on the outskirts of the capital.

Aldar said the contracts covered work on infrastructure, utilities and public areas for the projects, as well as marina works on Nareel Island.

Work on the developments, which will eventually provide plots of land for Emirati buyers to build their own villas, is scheduled to take 16 months to complete.

Nareel Island has been marketed by Aldar as one of the most desirable new addresses in the capital. The development consists of 148 villa plots as well as a lagoon, marina, clubhouse, parks, private beaches and gardens.

Aldar said it had awarded the earthworks and marine works tender packages in October. Reclamation work for the lagoon has started and dredging work on the southern island is complete.

The developer started selling the high-value villa plots last year, reporting that buyers committed an average of Dh18.5 million for each villa plot, and that is even before taking into consideration the cost of building a villa.

Al Merief, a new community in Khalifa City close to Masdar City and Raha Beach, comprises 283 land plots that cost Dh2.1 million on average. Plots at Al Merief also went on sale to Emiratis last year.

Aldar said it had completed all concept and preliminary designs for the project as well as a detailed design last year.

“As one of the most exclusive developments in the region, Nareel Island truly brings a new level of luxury to Abu Dhabi. Meanwhile, Al Merief is set to become a welcoming, impressive new address in a burgeoning area of the capital," said Talal Al Dhiyebi, Aldar’s chief development officer.

“We are very proud of these two very distinct communities, and the enthusiasm received from the UAE national community." Source: The National Back to Index

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

WHO SHOULD BE FIRST TO MAKE CONTACT 60 DAYS BEFORE THE END OF AN ABU DHABI TENANCY CONTRACT?

Wednesday, 20 July, 2016

My contract mentions that: "Before the end of lease period the tenant has to submit in sixty days, written notice that he is willing to either vacate the premises or renew the contract." Abu Dhabi Executive Council Decision No 32 for 2012, says that: "In the event the landlord does not wish to renew the lease, or wishes to amend the conditions of the lease, the landlord only has to notify the tenant in writing: two months before the date of the lease’s expiry in the case of residential properties". My question is: if the tenant wishes to continue, is it the tenant’s responsibility to inform the owner before the end of the lease period, or does the owner need to inform the tenant in writing? CS, Abu Dhabi

If your specific tenancy contract stipulates that the tenant has to inform the landlord of his intentions to renew or not by giving 60 days’ notice then this is what needs to be adhered to. If two months’ notice passes without communication from either party, the contract will automatically renew under the same terms and conditions as before. If this occurs, then neither party can alter the contract and the landlord cannot refuse to renew the contract. It is therefore good practice for either party to inform the other that they wish to renew or not (in the case of the tenant) or for the landlord to confirm he/she is happy to renew or not.

My rent expired last April but my landlord (the new owner of the house) gave me an eviction notice dated and issued on September 1 2015. When my contract expired on April 30 this year, he decided to give me a four-month contract until September 1, which would take me up to the end of the 12-month eviction notice period. He also increased the rent for the remaining four months by 5 per cent without informing me 90 days before the expiry of my lease. As I have not been able to find a suitable place to move into, I have asked him for a one-month rent extension and he agreed to let me stay until September 30. But, again, he increased the rent by 15 per cent for the month of September 2016. The landlord then told me that the market is down and that when I leave he is likely to rent the property at a much higher rent. If I wait until I have evidence in October/November that he has indeed let it out to gain a higher rent return, could I then take him to the rent committee? NC, Dubai

Just to clarify my understanding, your current landlord is the new owner of the property you are residing in, having bought it from your previous landlord some time before September 2015. The new owner then sent you an eviction notice (presumably via notary public or registered mail, if not then the notice is invalid) for reasons of either wishing to sell or wishing to use the property for own use or use by immediate next of kin. If the above is correct then he will not be able to relet the property to another tenant for a period of two years from the date of your eviction. If after you move out you subsequently find out that he has relet the property, you will be entitled to file a complaint at the rental committee. As for the rental increases you have had to succumb to for each extension period, these are not allowed as the owner has not given you the statutory 90-day notice period before the expiration of the agreement. Any increases in rent can only be allowed if the correct notice has been given.

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

My landlord has sent notice for eviction via recorded mail and we have received it. However, there is no reason for the eviction on the notice. As the landlord needs to have one of five reasons for eviction, is the eviction notice valid without the reason stated? Can we ignore this notice? MB, Dubai

Any vacating letter sent does have to have a valid reason for the eviction, therefore your notice is not valid. Whether you now choose to ignore it is up to you. I guess this depends on the kind of relationship you have with your landlord.

Mario Volpi is a real estate professional who has worked in the industry for the past 31 years in London and Dubai. The opinions expressed in this article are those of the author and they do not reflect in any way those of the institutions to which he is affiliated. It does not constitute legal advice and is provided for information only. Please send any questions to. Source: The National Back to Index

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

DUBAI SOUTH TENDERS FOR EXPO 2020 SITES TO SPUR SALES OF AFFORDABLE

HOMES

Sunday, July 17, 2016

Thousands of affordable homes next to the Dubai Expo 2020 site are likely to go on sale in October, after the government-owned master planner Dubai South awarded Dh1 billion worth of design and infrastructure contracts for the high-profile Residential District.

Atkins Global, Studio International Architects and RNL Design have won contracts to oversee the master plan for the district, which will comprise about 10,000 middle-income homes by 2020, housing about 35,000 residents.

A first phase, which will encompass 6,000 homes including apartments, villas and town houses, is due to be completed in 2019. The project will also have schools, community facilities, entertainment, retail and hospitality options.

Parsons and Kele Constructions have been awarded contracts to build the first phase of the project’s Sakany Staff Village, which is expected to accommodate 20,000 residents by 2020.

Dubai South, which was previously known as Dubai World Central, said the contractor Al Nasr had already started work on completing infrastructure at the first phase of the site, which is scheduled to be finish by the fourth quarter this year. Tristar Engineering and Construction has also been awarded a contract to complete the remaining infrastructure for the first phase of the project, which is scheduled to be completed by the end of next year.

According to Dubai South, more than 40 property developers are waiting in the wings to start construction work at the Residential District once infrastructure work is complete.

Al Nasr has also won a contract to build infrastructure in Dubai South’s Logistics District. And UAE-based City Diamond Contracting was also awarded a contract to build a multipurpose aerospace supply-chain facility in Dubai South’s Aviation District.

“Our investments will take us closer to realising Dubai’s vision of becoming a city of happy, creative, and empowered people," said Ahmed Al Ansari, the acting chief executive of Dubai South. Source: The National Back to Index

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

UAE RESIDENTS PREFER TO RENT THAN BUY HOMES, TURNED OFF BY HIGH PRICES

– PROPERTYFINDER SURVEY

Sunday, July 17, 2016

High house prices and deposit requirements mean that more than two thirds of people living in the UAE rent their homes rather than buy them according to new survey.

According to a poll of around 11,000 UAE residents carried out by property website Propertyfinder, 70 per cent said of respondents that they rented their homes rather than buying them.

Despite the fact that house prices have fallen for the last two years, just 30 per cent of respondents said that they had bought any property in the country.

The figure is the inverse of many Western countries where the majority of people own their own homes. For example, according to official figures, in England and Wales 64 per cent of the population are owner occupiers and only 36 per cent rent.

Last week property broker Cavendish Maxwell reported that property prices in the UAE have fallen by an average of 12 per cent since the second quarter of 2014 when the price of oil began to plummet making it more affordable for residents to buy their own homes.

Brokers estimate that the high costs of rents and relatively low interest rates mean that buyers end up paying around a third less each month in property payments than renters.

But the survey, which was emailed to Propertyfinder’s entire database of 78,000 people of which 11,000 responded, found that a combined 69 per cent of renters said that they did not buy because prices were too high, they couldn’t raise the necessary deposit or they were unable to qualify for the loan amount required to borrow.

Under mortgage cap regulations which were introduced in 2014, expats require a minimum 25 per cent deposit for properties priced under Dh5 million and a 35 per cent deposit for properties above that price bracket. And for anyone buying off plan, the UAE lending policy stipulates that buyers must stump up a minimum deposit of 50 per cent.

“It is clear that the want is there, but the high deposit requirements, the fees, the mortgage cap and stringent lending policies, are what’s stopping the market from maturing like its Western counterparts," said Lukman Hajje, propertyfinder chief commercial officer. “If we can overcome these points – I can really see a bright future for the UAE property transaction market."

But others pointed out that the transient nature of the expatriate community in the UAE meant that renting was far more convenient for many.

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

According to the survey, just 50 per cent of respondents had lived in the UAE for five years or longer. Moreover, 54 per cent of those surveyed said that they had ended staying longer than expected, meaning that when they arrived in the UAE they had no intention of buying.

“I don’t think many people really do the maths. It is true that if you buy over here you save around a third in payments each month," said Ben Crompton, co-founder of Crompton Partners.

“However, the problem most people are facing at the moment is job instability," he adds. “If you think that you might get made redundant and therefore go back to your home country then buying in the UAE really doesn’t make sense. I think a lot of people are worried about their legal rights if they lose their jobs here and that puts them off buying." Source: The National Back to Index

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

DUBAI SPEEDS UP COLLECTION OF ARREARS FROM TENANTS WHO LOSE

RENTAL DISPUTES

Sunday, July 17, 2016

Tenants in arrears could have their bank accounts frozen within two days of losing a legal dispute, after Dubai’s Land Department (DLD) struck a deal with the Central Bank.

The DLD announced over the weekend that it was setting up an electronic system linking its Rental Disputes Centre (RDC) with the country’s Central Bank, which it says will enable landlords to recoup unpaid rents far more quickly.

The DLD said it was developing an electronic framework of cooperation with the Central Bank that would cut the amount of time it takes to freeze bank accounts belonging to tenants who lose their cases in the RDC.

Under an agreement signed by the RDC director Abdulqader Musa Mohammed and the Central Bank’s assistant governor for banking supervision, Saeed Abdullah Al Hamiz, the Central Bank’s existing customer information request system will be upgraded to an electronic system, allowing the amount of time it takes for official paperwork to take effect to be cut to just two working days from six months.

The RDC said all of the 2,630 judgements that have been made so far this year will be rapidly implemented using the new electronic system. Amid lower oil prices and a slowing economy, there has been an increase in the number of rental disputes between landlords and tenants.

Mario Volpi, the chief sales officer at Kensington Executive Properties andThe National’s property advice columnist, said that while it was unusual in Dubai for tenants to maliciously withhold rent that “at the moment we are seeing a few cases where tenants lose their jobs and can’t afford to pay the rent".

“Also, it is becoming the norm in Dubai to pay rent in as many as six postdated cheques, so if a tenant loses his job partway through the year it is possible for him to not pay," he said.

“Generally in Dubai the real estate laws are weighted towards the tenant rather than the landlord so perhaps this is a way of impressing upon people that renting is a serious undertaking, but I hope that under this new system tenants are able to resolve any debt problems with their landlords."

Despite the rather drastic-sounding nature of the new system, the DLD said it would “ensure a higher level of security for all parties involved in property contracts".

“The customer information request system at the Central Bank of the UAE has safeguarded stability across many of Dubai’s industry sectors, and we are certain that this will also be the case for our cooperation with the RDC and DLD," Mr Hamiz said,

“Our plan will help the Emirate’s property sector by maintaining the rights of all parties, ensuring justice through the fair and efficient application of the provisions of UAE law."

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

Governments around the world have the power to freeze bank accounts for a variety of reasons, including civil court judgements, suspected illegal activities or suspicious activities that have been detected by government agencies or regulatory bodies. The death of the account holder may also trigger a temporary freeze on bank accounts.

Matthew Green, the head of research at CBRE’s Dubai office, welcomed the move. “This is an encouraging development for the property sector as a whole, as it will help to dramatically reduce the process time for rental disputes, which in turn sends out a positive message to the market," he said.

“The move comes as a further sign of the maturing nature of the industry, and also underlines the continued efforts in streamlining government services as the country moves towards an online economy. With transaction volumes currently dampened by the impact of the sustained strength of the US dollar and negative investment market sentiment caused by ongoing global economic uncertainty, the government is clearly taking a proactive role in kick-starting property activity through the means of better regulation and improved process efficiency."

Villa and apartment prices in Dubai and Abu Dhabi fell between 4 per cent and 6 per cent during the second quarter compared to the same period last year, according to the property consultants Cavendish Maxwell.

Home prices, however, are expected to remain stable in the third quarter as the slow months of summer and Ramadan put a damper on the number of transactions. Source: The National Back to Index

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

BREXIT TO DELAY DUBAI HOUSING MARKET

RECOVERY, PROPERTY BROKER JLL SAYS

Monday, July 18, 2016

Property broker JLL has said the UK’s vote to leave the European Union will delay the Dubai housing market’s recovery by six months.

After two years of falling house prices, JLL had previously forecast, the residential market in the emirate would start to recover either towards the middle of this year or later.

However, with British nationals making up the third-largest group of foreign investors in Dubai property and the value of the pound down more than 10 per cent since the Brexit referendum last month, the broker has revised its forecast to next year.

“Provided there are no major external shocks over the rest of the year, we expect the Dubai residential market to recover in early 2017," JLL said.

According to the broker, house prices remained flat in the three months to the end of June.

This means the average Dubai house price now stands about 15 per cent lower than it did at the last market peak, in mid-2014.

“Even though it is too early to predict the long-term implications, overall there is a slight probability of British investors being negatively affected by the devaluation of the British pound following Britain’s decision to exit the European Union," said Craig Plumb, the head of research at JLL’s Dubai office.

“Expatriates in Dubai are most likely to continue renting their homes instead of switching to ownership, resulting in sales being more negatively affected than the rental sector," he said.

But in a note to investors, property analyst Unitas Consultancy said it did not expect the Brexit decision to affect the Dubai property market.

Unitas said the value of the pound has not fallen by as much if taking a view over the last 18 months, while the amount of property bought by British investors in Dubai had increased over the same period.

According to Unitas, which uses Reidin data, the total amount of money spent by British buyers of Dubai property had increased to Dh10.8 billion last year – or 8.6 per cent of total transactions – from Dh5bn in 2012, or 3 per cent of total transactions.

Unitas said: “The effect of the Brexit event will be played out over the next few years on a global stage that will continue to push markets in unexpected ways.

“However, the fear of a weakening currency and its affect on foreign property markets is likely exaggerated and in point of fact, there might well be a positive effect on markets such as Dubai, as foreign flows continue to gather pace, especially in light of the ensuing uncertainty that has been created as a result of the referendum."

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

Source: The National

Back to Index

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

DUBAI RETAILER FOREVER ROSE TO OPEN HOTELS IN LONDON AND GCC

Monday, July 18, 2016

The Dubai retailer Forever Rose is to expand into hotels, with the first one in central London, on expectations that tourism between the United Kingdom and the Arabian Gulf region will remain buoyant despite the vote to leave the European Union.

Forever Rose, which is owned by the Dubai retail and hospitality company Al Samadi Group, will invest £13 million (Dh63.2m) in the Knightsbridge hotel, which is housed in a historic building. It will follow up with one in Dubai with an investment of £20m before 2020, and another in Qatar before the Fifa 2022 World Cup with a similar investment. The hotels in the Arabian Gulf region will have between 90 and 140 rooms.

Al Samadi took over Forever Rose, which is incorporated in the UK, in 2014 for £1m, and turned it into a retailer from an events company. It now sells roses from Ecuador, diamond jewellery, chocolates and oud fragrance. It has five outlets in the UAE.

The hotels will be financed internally, said Ebraheem Al Samadi, the chief executive of both Forever Rose and Al Samadi Group. The 50-room hotel in London is expected to open in 2018, and Forever Rose will lease it for 100 years.

Mr Al Samadi expects to open the first UK Forever Rose retail shop in the same location in London in September.

"Brexit won’t affect tourism, and [the UK] is a part of Gulf nationals’ lives," Mr Al Samadi said. "The real estate might take a hit because a lot of [wealthy] EU people based in the UK might leave because of the inconvenience of exiting and entering, and the rental market will also take a dip."

Arabian Gulf holidaymakers are among the biggest spenders in London.

Last year, 723,773 Arabian Gulf nationals visited the UK and spent US$2.3 billion, according to the International Passenger Survey data released by the Office for National Statistics in May.

From the UAE alone, 347,000 Emiratis visited the UK, up 34 per cent from 2014. It was followed by Saudi Arabia, Kuwait and Qatar.

Those from the UAE spent £487m, up from £437m the previous year.

Forever Rose opened its first outlet on the Abu Dhabi Corniche in 2014. This year it opened at Yas Mall in Abu Dhabi and at Al Ain Mall. It expects to open three more in the UAE this year, including at the capital’s Galleria Mall in September. It is investing $5m for the five outlets in the UAE this year.

It will expand into Qatar in September, and to Kuwait in December.

A Forever Rose cafe is expected to open in Riyadh in the fourth quarter. Source: The National Back to Index

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

MORE DUBAI PROPERTY DEALS OVER FIRST

SIX MONTHS – BUT TOTAL VALUE LOWER

Tuesday, July 19, 2016

The value of property deals transacted in Dubai in the first six months of the year fell despite a rise in the number of transactions.

According to figures from the Dubai Land Department published yesterday, the total value of real estate transactions in Dubai fell 12.4 per cent to Dh113 billion in the first half of 2016 from Dh129bn during the same period a year earlier.

However, the DLD reported that the number of transactions taking place over the period increased by more than a fifth, rising to 28,251 sales, mortgages and other transactions in the first half of 2016 from about 23,000 a year earlier.

The total value of new mortgages taken out during the period fell by a quarter to Dh48.3bn from Dh65bn a year earlier. And the total value of sales transacted without a mortgage fell 8 per cent in the first half to Dh48.7bn from Dh53bn last year.

The DLD said that Business Bay remained the most popular area of Dubai for unit sales, with 1,643 transactions valued at Dh2.3bn – down slightly from Dh2.5bn last year.

Dubai Marina was the second most popular area for unit sales – 1,392 transactions took place during the period with a total value of Dh2.89bn. Warsan 1 was third with 999 transactions with a total value of Dh454 million.

“Dubai has achieved a high percentage of growth, with the value and the number of real estate transactions, which provides reassurance about the positive development that the Dubai property market is witnessing, and proves the attractiveness of the Emirate’s real estate," said Sultan Butti bin Merjen, the DLD director general.

The news came a day after property broker JLL predicted that the UK’s vote to leave the European Union will delay the Dubai housing market’s recovery by six months.

After two years of falling house prices, JLL previously forecast the emirate’s residential market would start to recover towards the middle of this year or later.

According to JLL, house prices remained flat in the three months to the end of June, meaning that average Dubai house prices now stand about 15 per cent lower than the last market peak, in mid-2014. Source: The National Back to Index

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

BUY INTO HIS PROJECT AND GET A

‘GOLDEN’ PASSPORT

Tuesday, July 19, 2016

Issues of citizenship and nationality have come to the fore in a big way in the post-Brexit world, with many commentators focusing on the negative repercussions for the British, European and global economies.

On the other hand, Munaf Ali, chief executive of the hotels group Range Developments, sees this as a unique business opportunity, and has already recorded a spike in interest for his services. “Even before Brexit, there was a lot of demand from British people who don’t like paying so much tax. Since the vote, we’ve seen even more inquiries, but now it’s from people who are worried about ease of travel in the Schengen area and Britain. It’s very encouraging for us," he says.

Mr Ali, a British-born banker by training of Indian heritage, in effect sells citizenship. He offers the chance to holders of “less valuable" passports to obtain “better" ones that help travel and domicile issues. It is a booming business, especially amid post-Brexit uncertainties.

Many countries “sell" citizenship. In the UK, wealthy foreigners can, after many years and millions of pounds of investment, obtain British citizenship. Portugal and Spain offer similar “golden passport" bargains. The island of Malta, with its lucrative position as a sovereign member of the EU, also offers citizenship, although Brussels has not always been very happy about this.

Mr Ali spotted a rather more esoteric opportunity. The Caribbean islands of St Kitts and Nevis, member states of the British Commonwealth, enjoy the same balmy climate as legendary tourist destinations such as Bermuda, the Bahamas and Cayman Islands. But they suffered from under-development and a lack of investment.

He and his co-founder at Range, Mohammed Asaria, learnt that the St Kitts government had a long-running “citizenship by investment programme". It also had a need for upmarket leisure facilities, especially hotel rooms.

Range had expertise in the hotels business. Mr Ali identified hotels and property as a growth sector almost immediately when he came to Dubai as an executive with Citibank in 2005, and soon set up on his own as a developer. “Dubai was such a dynamic place, and real estate was at the centre of it. But the market here was too crowded, so we started by looking for opportunities abroad."

One project involved the launch of a five-star hotel in Karbala, the pilgrimage destination in Iraq, but security fears and political instability in the country led to an early exit, with Range selling its interest to the contractor in 2013.

The Caribbean opportunity he was simultaneously exploring was far more alluring, and less risky. Hotel industry contacts suggested that the Hyatt group, the global chain renowned for its Park, Grand and Regency brands, wanted to increase its Caribbean presence, and a deal was struck with the Chicago hotelier to develop on a site near St Kitts’ Christophe Harbour.

Uniquely, the Range development was to be funded via the sale of St Kitts passports. Investors in the project were able to buy a share in the government-approved scheme, and with it the right to apply for a passport.

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

About US$600,000 was required for a stake in the hotel development, as well as government processing and due diligence fees, which would get passports for a family of four. Mr Ali says the scheme was 95 per cent taken up as early as 2012.

Investors get an annual yield of about 5 to 6 per cent, and can sell the stake on after a five-year period – while retaining their passports.

The hotel will open next March, and is going unhesitatingly for the higher end of the market. Rooms are available for $900 to $2,400 a night, putting it in the same category as the big luxury developments at Sandy Lane in Barbados, long a favourite of the wealthy international jet set.

With the St Kitts development nearing completion, Mr Ali is looking at nearby Dominica for the next project, where he has already signed up with the international operator Kempinski. Then the glamorous island of St Lucia beckons, with the prospect of a “big name hotel brand" being announced soon, he says.

The customers are split roughly one-third each from Asia, especially China, the Middle East and eastern Europe, Africa and the rest of the world. There are even some US citizens ready to renounce their citizenship in the effort to escape the long arm of the American tax authorities, Mr Ali says.

In the Middle East, would-be citizens of St Kitts come from Iraq, Syria, Jordan and Lebanon, countries whose passports are deemed to hold high “travel risk", as well as wealthy citizens of GCC countries who want more discreet and less visa-hassled travel. St Kitts has visa-free travel to 130 countries, including most of Europe. And the island does not have an issue with dual nationality.

So business is booming. But isn’t Mr Ali worried that “citizenship by investment" might become tarnished by the growing global antipathy towards offshore centres, the syndrome of “shady men in sunny places" that has been highlighted by events such as the publication of the Panama Papers?

“Range does not hand out passports. The government has a rigorous and confidential due diligence process, conducted by the best international firms. Citizenship is not a formality no matter how wealthy you are," he says. Source: The National Back to Index

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

UAE HOTELIERS COUNT ON MARVEL, LEGO AND BOLLYWOOD THEME PARKS OPENING

FOR YEAR-ENDING BOOST

Wednesday, July 20, 2016

Amid sluggish summer trade, hotel operators are forecasting a surge in business in the final months of this year as visitors are drawn to the UAE by the opening of Marvel, Lego and Bollywood-inspired theme parks.

Hotels in Dubai and Abu Dhabi had lower demand this Ramadan compared with last year, affecting occupancy and room rates.

Compared to the Ramadan period in 2015, properties in Dubai maintained their average occupancy rate at 43.3 per cent, but the average room rate declined 11.6 per cent to Dh477.32, according to the research company STR. Hotels in Abu Dhabi reported a 7.7 percentage point decrease in occupancy to 46 per cent, and a 7.2 per cent dip in the average room rate to Dh342.71 over the previous year.

“[An] extensive supply of rooms in the market, and longer school holidays prompting families to travel after Ramadan, are[among the] reasons for the drop in the room rates," said Samir Arora, the cluster general manager of R Hotels, who looks after Ramada Downtown Dubai and Hawthorn Suites by Wyndham in Jumeirah Beach Residence (JBR).

At the end of the second quarter, Dubai had 83,911 hotel rooms, while Abu Dhabi had 24,353 rooms, according to STR.

The opening of IMG Worlds of Adventure, which has attractions featuring superheroes Iron Man and The Hulk and Dubai Parks and Resorts’ three-park complex will contribute to a better performance by the hotel sector in the fourth quarter.

IMG Worlds of Adventure is scheduled to open on August 15 and Bollywood Parks, Legoland Dubai and Motiongate Dubai are due to open in October.

“We are really looking forward to the opening of the theme parks, and we expect to see the rush coming," Mr Arora said.

The attractions will help more hotels to cater to families. “We are quite confident it will be helpful for us as a lot of people, especially families, are keen to come in," said a spokeswoman for the Amwaj Rotana on The Walk at JBR, where trade has begun to pick up.

Dubai Parks and Resorts forecasts about 6.7 million visits to its attractions next year. The entire emirate received 14.2 million last year. Abu Dhabi received 3.49 million.

In Abu Dhabi, the last quarter looks promising with the Formula One coupled with the festive season, said Desmond Hatton, the general manager at Dusit Thani Abu Dhabi.

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

“The business is expected to pick up September onward," he said.

The decline in room rates and occupancy during Ramadan this year was primarily due to ongoing economic downturn both locally and globally, according to Mr Hatton.

“It has led to a decline in the business travel vis-a-vis the last year during the Ramadan period," he said. “The corporate houses are making every effort to cut corners wherever possible." Source: The National Back to Index

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

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

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

ASSET MANAGEMENT Asteco provides comprehensive asset management services to all property owners, whether a single unit (IPM) or a regional mixed use portfolio. Our focus is on maximising value for our Clients.

OWNER ASSOCIATION Asteco has the experience, systems, procedures and manuals in place to provide streamlined comprehensive Association Management and Consultancy Services to residential, commercial and mixed use communities throughout the GCC Region.

SALES MANAGEMENT Our Sales Management services are comprehensive and encompass everything required for the successful completion and handover of units to individual unit owners.