NEWS BRIEF 07 SUN DAY 14 February 2016
Total Page：16
File Type：pdf, Size：1020Kb
ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION NEWS BRIEF 07 SUN DAY 14 February 2016 RESEARCH DEPARTMENT DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2016 asteco.com | astecoreports.com ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION REAL ESTATE NEWS UAE UAE EXPATS BUYING UK PROPERTY... HIGH RISK INVESTORS? UK FIRM ATKINS SHEDS 100 JOBS AS CONSTRUCTION HIT BY TIGHTENING MIDDLE EAST BUDGETS DUBAI DUBAI PROPERTY PRICES FALL BY 11% IN 2015 - AFFORDABILITY KEY MARKET DRIVER IN 2016 SAYS ASTECO NEW TOWER TO REFLECT BOTH ISLAMIC AND MODERN ARCHITECTURE DUBAI'S FALCON CITY AIMS TO KICK-START AILING MEGA PROJECT DUBAI RENT ALERT: WHY RESIDENTIAL RENTS WILL FALL THIS YEAR… AND 2017 RENTS FOR 1-BED UNITS IN DUBAI'S BUR DUBAI, DEIRA UP 70% TO 86% DUBAI MAY HAVE MORE SMART CITIES IN INDIA DUBAI POPULATION EXPECTED TO RISE TO 5M BY 2030 TOUGH TIME AHEAD FOR DUBAI DEVELOPER DAMAC AS PROFIT FALLS SHAJI UL MULK: THE MAN, THE FACADE AND THE ADDRESS DOWNTOWN DUBAI FIRE ROTANA ADDS HOTELS ACROSS THE REGION DUBAI HOUSE PRICES TO FALL FURTHER, BUT AT A SLOWER RATE THAN 2015 ACTION HOTELS PAYS $10M FOR DUBAI MEDIA CITY PLOT ARCHITECTS KEEN ON CALATRAVA-DESIGNED TOWER AT DUBAI CREEK PROJECT RISE IN PROFIT FOR DUBAI’S EMAAR MALLS LESS THAN EXPECTED DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2016 asteco.com | astecoreports.com Page 2 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION ABU DHABI ABU DHABI’S RESIDENTIAL MARKET TO SLOW DOWN IN 2016 RENTS FALL IN SOME OF ABU DHABI’S HIGH-END PROPERTIES PROPERTY REPORT REVEALS ABU DHABI AND DUBAI’S MOST SEARCHED LOCATIONS NORTHERN EMIRATES RAK PROPERTIES APPOINTS TWO US FIRMS FOR RESORT PROJECT MANAZEL REAL ESTATE LAUNCHES NEW INVESTOR RELATIONS WEBSITE AND MOBILE APP DUBAI RENTAL SOFTNESS MAY HIT NORTHERN EMIRATES RAK PROPERTIES APPOINTS LEADING ARCHITECTURE & INTERIOR DESIGN FIRMS DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2016 asteco.com | astecoreports.com Page 3 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION RAK PROPERTIES APPOINTS LEADING ARCHITECTURE & INTERIOR DESIGN FIRMS FRIDAY 12 FEBRUARY 2016 Ras Al Khaimah’s biggest property developer listed on the Abu Dhabi Stock Exchange, said it has announced that it has appointed award-winning American firms Perkins Eastman and Wilson Associates to provide their world-renowned expertise in architecture and interior design to Anantara Mina Al Arab Ras Al Khaimah Resort which is set to open in 2018. New York City -based Perkins Eastman is an international architecture firm backed with diverse services from interior design, urban design, planning, landscape architecture, graphic design and project management, while Dallas, Texas -based Wilson Associates is an interior designer that creates iconic and progressive luxury environments. The two are key additions to the elite roster of world-class contractors and partners that are collaborating on making the hotel a model of modern design with minimal impact on the environment. “Our partnership with these distinguished firms will compliment Mina Al Arab which was created with the environment in mind, showcasing and protecting Ras Al Khaimah’s natural beauty particularly along its natural coastal wetlands. Its master plan includes provisions for unique natural trails that will immerse guests in the richness and diversity of the Ras Al Khaimah natural environment. Perkins Eastman and Wilson Associates will help capture these elements in the hotel’s interior and exterior appearances,” Mohammed Sultan Al Qadi, Managing Director and CEO, RAK Properties , said in a statement. A flagship development of RAK Properties , Mina Al Arab is emerging as a major player in Ras Al Khaimah’s efforts to establish the emirate as a unique destination for leisure and adventure. The project stands alongside a scenic coastline stretch around 88 kilometres north of Dubai International Airport. It embodies RAK Properties’ focus on building well-planned out communities marked by superior quality, modern design and sustainability. Source: Gulf News Back to Index DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2016 asteco.com | astecoreports.com Page 4 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION DUBAI PROPERTY PRICES FALL BY 11% IN 2015 - AFFORDABILITY KEY MARKET DRIVER IN 2016 SAYS ASTECO SUNDAY 07 FEBRUARY 2016 22,000 apartments and 7,700 villas schedule for delivery this year, keeping downward pressure on sales and rental rates through 2017 Leading real estate consultancy Asteco has released its latest Dubai report, providing an historic review of last year and 2016 outlook, with affordable communities leading the way in terms of rental demand and investor opportunity against a scenario of significant oversupply looming in the high-end and luxury segments. The report flags the impact of delayed project delivery in 2015 and a large pipeline for 2016, coupled with the demand slowdown and continued low oil prices, as an indicator of market prospects this year, with both rental rates and sales prices coming under further pressure. A total of 13,500 apartments and 800 villas were added to Dubai's residential real estate supply in 2015, and a further 22,000 apartments and 7,700 villas are scheduled to be delivered in 2016, with downward rental rate pressure likely to continue through to 2017, says the report. "However, if we look to the medium and long-term, the outlook is more positive with demand more than likely to grow in line with the progress of key infrastructure projects currently underway, such as Dubai World Central Airport and Expo 2020," said John Stevens, Managing Director, Asteco . Residential sales recorded across-the-board declines, with villa sales prices down year-on-year by 11% and apartments by 8%. Villas on Palm Jumeirah recorded price declines of 13% over the year, dropping to AED 2,475 per square foot on average and The Meadows was also down 15% to AED 1,150. End-users, rather than investors, were the predominant buyers of villas and townhouses, with a clear preference for smaller 2, 3 and 4 bedroom units, rather than large villas. New communities such as Mudon and Arabian Ranches Phase 2 saw improved levels of activity, offering better-priced yet good quality alternatives to some of the more established areas. At the high end of the apartment market, Jumeirah Beach Residence was down 16% to AED 1,370 per square foot and apartments on the Palm Jumeirah dropped 14% to AED 1,720 per square foot on average. Villa rentals were down 9% on average year-on-year, but Al Barsha recorded an increase for three- bedroom villas, up 9.2% to AED 213,000 per annum while in Mirdiff similar properties rose 4.2% to AED 138,000. The biggest falls came in Jumeirah and Umm Suqeim where three-bed villas dropped more than AED 50,000 or 20% on average to hit AED 195,000, while larger four-bedroom homes in Arabian Ranches and Jumeirah Park were also down 19% to AED 243,000 and 15.5% to AED 145,000 respectively. DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2016 asteco.com | astecoreports.com Page 5 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION "With fresh new supply entering the market, this is forcing property owners, especially of older independent villas, to become increasingly competitive on pricing," remarked Stevens. With supply handover slower than anticipated in 2015, apartment rental rates remained broadly stable over the year, dipping just 1% on average, although Asteco recorded disparities between different areas. Apartment rental rates were down by 4% on average, with Sheikh Zayed Road recording the highest drop of over 12%. Dubai Marina and Palm Jumeirah both saw a year-on-year dip, with a one-bedroom apartment dropping 13.3% to AED 98,000 and 10% to AED 135,000, respectively. The DIFC area was not immune either in 2015, two-bedroom units have dropped 8.7% to AED 158,000 per annum, as did JBR with the highest average decline for a two-bedroom apartment, dropping 9.2% to AED 148,000. "For property owners, adjustments in terms of rental expectations and payment flexibility will have to be made. And, as usual in cases of increased supply, better quality, well managed or value-for- money properties will be able to achieve higher occupancy levels than others," noted Stevens. The commercial office sector fared slightly better despite significant new space of 500,000 square metres coming online in 2015 and 1.1 million square metres set to be delivered in 2016. H1 2015 saw improved levels of demand leading to moderate increases in rental rates in certain areas. "The majority of new office supply entering the market this year will be strata-owned buildings in popular office areas like Business Bay and Jumeirah Lake Towers. Sales demand is expected to come primarily from SME level end-users," added Stevens. Source: Press Release 2016 Back to Index DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2016 asteco.com | astecoreports.com Page 6 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION DUBAI POPULATION EXPECTED TO RISE TO 5M BY 2030 SUNDAY 14 FEBRUARY 2016 The population of Dubai is expected to increase to five million by 2030, said Hussain Nasser Lootah, Director-General of Dubai Municipality. Speaking on the final day of the fourth World Government Summit in Dubai, Lootah said, as a consequence of increasing population and depleting natural resources, there is a parallel increase in demand on education, energy, employment, housing and all the other issues.