Week 34 SUNDAY, 25 AUGUST 2019

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

REAL ESTATE NEWS

UAE / GCC / MENA

DH50.6 BILLION WORTH OF PROJECTS ANNOUNCED IN GCC IN JULY

REVEALED: HOW FAR UAE PROPERTY PRICES HAVE FALLEN SO FAR IN 2019

UAE HAS 54,438 HOTEL ROOMS IN PIPELINE

UAE BANKS' EXPOSURE TO REALTY DECLINES

UAE CONSTRUCTION SECTOR TO GROW UP TO 10% IN 2020

ARABIAN CENTRES' PROFITS REACH $60.53M

JEDDAH HOTEL OCCUPANCY RATE HITS NEAR-3 YEAR HIGH IN JULY

WEWORK COMPETITOR KNOTEL RAISES $400M FROM KUWAITI FUND

FROM 7.9% TO 6%: UAE BANKS GET KIND OF GENEROUS ON MORTGAGES

DUBAI

CHINA’S APPETITE FOR DUBAI PROPERTY GROWS AMID STRENGTHENING OF SINO- UAE TIES

DUBAI'S EMAAR BUYS REMAINING 35% OF RESORT DEVELOPER MIRAGE: EXCLUSIVE

DUBAI TO SPEND OVER $75.4M ON LANDSCAPING PROJECTS FOR EXPO 2020 SITE

DAMAC IN TALKS WITH DICO OVER AL SUFOUH, BUSINESS BAY LAND PLOTS

FLEXIBLE WORKSPACES ADAPT TO UAE’S NEW-GEN WORKERS

AFFORDABLE LUXURY: DUBAI HOME BUYERS LOOK TO UPGRADE AS PRICES CONTINUE TO FALL

AL QUDRA RESIDENTS WELCOME RTA PLANS FOR FLYOVER, BRIDGES AND WIDER LANES

VILLA SALES RISE IN DUBAI AS CHEAPER STOCK COMES ONTO THE MARKET

HOMEFRONT: 'WHAT ARE THE BEST PLACES TO LIVE IN DUBAI FOR A NEW ARRIVAL?'

LUXURY DUBAI PROPERTY PRICES EDGE UPWARDS IN Q2

UAE DEVELOPER AZIZI APPOINTS NEW CFO TO DRIVE FINANCIAL STABILITY

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

REAL ESTATE NEWS OPINION: THERE'S NO PLACE LIKE HOME

DUBAI WAITS FOR ITS NEXT GROWTH BOOSTER

ABU DHABI

WORK BEGINS ON $49.8M AL AIN CITY ROUNDABOUT PROJECT

IMKAN APPOINTS CHINESE FIRM TO BUILD PIXEL PROJECT IN ABU DHABI

REPORTAGE PROPERTIES TO DELIVER 5 PROJECTS IN 3 YEARS

INTERNATIONAL

MORTGAGE RATES AROUND THE WORLD: DANISH BANK PAYS HOMEBUYERS TO TAKE OUT LOANS

INDIA'S REAL ESTATE POTENTIAL SHINES THROUGH

OPEC BEARISH ON OIL MARKET, POINTS TO 2020 SURPLUS AS RIVALS PUMP MORE

IMKAN EYES EGYPT EXPANSION WITH SECOND MAJOR PROJECT

DUBAI-LISTED BLME BUYS $32.6M EDINBURGH OFFICE BUILDING

EMAAR UNIT REJECTS LAWSUIT OVER EGYPT PROJECT LAND OWNERSHIP

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

DH50.6 BILLION WORTH OF PROJECTS ANNOUNCED IN GCC IN JULY Wednesday, Aug 21, 2019 Projects worth $13.8 billion (Dh50.6 billion) were announced across the GCC in July 2019, registering 140 per cent growth month-on-month with the energy sector registering the highest value in terms of new project announcements worth $9.2 billion, according to BNC Projects Journal. The energy sector also led contract awards with $3.7 billion in awards, and project completions during the month, equalled 90 per cent of project completions seen during the whole of Q2 2019. Saudi Arabia awarded projects worth $3.3 billion and Oman announced new projects worth $5 billion in July. The UAE registered project completions worth $7 billion, followed by Saudi Arabia with $ 3.7 billion. Although there was an increase in project completions month-on-month, completions were 20 per cent lower than the monthly average this year. "GCC's project market fared surprisingly well in July, considering the annual summer slowdown," said Avin Gidwani, CEO of Industry Networks. Urban construction contract awards tripled in July compared to $1 billion awards in June primarily driven by the UAE which contributed around 65 per cent of the urban contract awards last month. Source: Khaleej Times Back to Index

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

WEWORK COMPETITOR KNOTEL RAISES $400M FROM KUWAITI FUND Thursday, Aug 22, 2019 Flexible workspace provider targeting expansion into the 'world's 30 largest cities' Skyline of New York City, which is home to flexible workspace provider Knotel. It has just raised $400m in a funding round led by Kuwait's sovereign fund. AFP A three year-old competitor to WeWork has secured $400 million (Dh1.5 billion) in a new round of funding led by Wafra, an investment arm of Kuwait's sovereign wealth fund. Knotel is a New York-based flexible workspace provider which manages more than 370,000 square metres of space in more than 200 locations in cities such as New York, San Francisco, London, Los Angeles, Washington DC, Paris and Berlin, among others. The company said it will use the new money to grow its footprint in existing markets and "continue expansion into the world's 30 largest cities". It also said it would "accelerate recent innovations" such as Baya — an internal blockchain platform used to support data-driven acquisitions — and a system known as Geometry aimed at streamlining its delivery model. “Knotel is building the future of the workplace, and we are excited to welcome a group of investors who believe passionately in our product, vision and ability to execute,” said Amol Sarva, the company's co-founder and chief executive. “Wafra will help us continue our rapid global expansion and solidify our position as the leader in a fast- growing, trillion-dollar flexible office market.” The latest $400m funding round values the company at over $1 billion, Knotel said in a statement, and brings the total the company has raised to date to $560 million. Investors to participate in the latest round alongside Wafra include three Japanese firms - real estate company Mori Trust, trading conglomerate Itochu and equity investor Mercuria. Wafra is an alternative asset investor with assets and commitments of about $24bn. Its other investments include The Avenue, a luxury apartment building in Washington DC and in private equity firm TowerBrook Capital. Competitor WeWork's parent firm The We Company last week revealed plans for its IPO. WeWork has raised more than $12bn in funding since its launch in 2010. The company has received backing from Japan's SoftBank Vision Fund. Its IPO filing revealed that last year, the company declared a net loss attributable to its shareholders of $1.6bn on revenue of $1.8bn. Source: The National Back to Index

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REPORTAGE PROPERTIES TO DELIVER 5 PROJECTS IN 3 YEARS Thursday, Aug 23, 2019 Reportage Properties, an Abu Dhabi-based real estate developer, has revealed that it is ready to hand over five new developments in Abu Dhabi within the next three years. The five projects are located in leading investment areas in Abu Dhabi such as Masdar City and Al Raha Beach, and offer more than 1,600 new housing units for the Abu Dhabi market, said Nasser Al Khamees, CEO of Reportage Group of companies. He stressed the company's commitment to complete all its projects as scheduled, which contributes to enhancing investors' confidence in the projects, and attracts more investors to the real estate sector in Abu Dhabi. He also noted that the realty sector is boosting stability amid positive signs of improved activity, with the adoption of further measures, laws and legislations that stimulate investment. Khamees said that the company would start delivering the units at 'Oasis Residence 1' project in Masdar City during the first quarter of 2021, where 25 per cent of the work has been achieved. The project provides 612 apartments, with 310 studios, 256 one-room apartments, 44 two-room apartments, two three-room apartments. The total area of the project is 8,371 square meters. The company is also in the process of handing over the units in 'Oasis Residence 2' project in Masdar City, which will provide about 300 residential units during the second quarter of 2022. They will also hand over the units of the 'Gate' project in Masdar City, which will be started soon and will provide about 420 units during the second quarter of 2022. Khamees also noted that construction work on 'Al Raha Beach' projects is in progress with more than 20 per cent of the work having been achieved. The company is developing 'Al Raha Loft 1' project with 164 units, including 14 studios, 96 one-bedroom apartments and 31 two-bedroom apartments. The total area is 6,663 square meters. 'Al Raha Loft 2' with 110 apartments, is in the process, including 22 studios, 52 one-bedroom apartments, 24 two- bedroom apartments and 12 three-bedroom apartments. It has an area of 5,364 square meters. "The work at Al Raha Loft 1 and Al Raha Loft 2 exceeds 28 per cent, and its units are expected to be delivered during the first half of 2021," said Khamees, adding that the two projects include retail spaces and facilities and services such as swimming pools, a gym and tennis court. Khamees also said that the company has recently completed the delivery of units in 'Leonardo Residence' residential project in Masdar City, which provides 177 apartments, including 122 studios, 48 one-bedroom apartments, 16 two-bedroom apartments, and one apartment with three bedrooms. The total area of the project is 4,250 square meters. Source: Khaleej Times Back to Index

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LUXURY DUBAI PROPERTY PRICES EDGE UPWARDS IN Q2 Friday, Aug 23, 2019 New research by Knight Frank says prime residential values in Dubai rise 0.3% in second quarter but are 6% down year-on-year Luxury property prices in Dubai registered their first rise for years during the second quarter of 2019, according to new research by Knight Frank. Prime residential values rose by 0.3 percent in the three-month period to the end of June but were still down by 6 percent over the past year. That placed the emirate 42nd out of 46 cities covered in the latest Knight Frank Prime Global Cities Index. Berlin is the city with the strongest rate of annual price growth at 12.7 percent with the average annual prime price growth across the 46 cities at 1.4 percent, Knight Frank noted. It added that 26.3 percentage points separated the strongest and weakest performing city, which was Vancouver in Canada which posted annual price drops of over 13 percent. Knight Frank said 78 percent of cities registered a prime price increase over the 12-month period. In June, Knight Frank said Hong Kong remains the most expensive prime residential city market in the world, with an average prime price of $4,251 per sq ft in 2018. According to latest data from its Wealth Report Insight Series, across the 10 cities surveyed, Dubai remains the most affordable market with an average price of $625 per sq ft, just 15 percent of the average price in Hong Kong. Source: Arabian Business Back to Index

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

DUBAI WAITS FOR ITS NEXT GROWTH BOOSTER Saturday, Aug 24, 2019 To be concise about Dubai is harder than you think. The city stands for something in the Middle East’s way of living, but what that something is not always clear. Even after decades, you can’t easily formulate the reasons for your attachment, because the city is always transforming itself and the scale of transformation is tremendous. Dubai builds itself, knocks itself down again, scrapes away the rubble and starts over. In Paris or Venice, a person can always view the city as it has been for centuries, as his ancestors saw. In Dubai however, a person wanders about the city like a man who has lost many teeth. Fast-tracking an unprecedented boom The speed of the cycles of prosperity and sluggishness presents an extraordinary challenge to historians. Dubai is not old enough to attract archaeologists, but long-time residents still feel that they have their own monuments and ruins that accelerated development and compacted the decades. If you’ve been here long enough, you have seen the movement of history with your own eyes. It wasn’t long ago that water was starting to flow in Dubai Marina, JLT was still a barren desert, and the Palm was yet to rise above ground. The Downtown district was but a power point presentation, and there was an outbreak of redback spiders in Meadows as residents moved in for the first time. In those heady days, the real power belonged to a pioneering group of real estate developers, themselves competing and colluding with each other to create districts and neighbourhoods from scratch. Investors and developers alike descended on the city to capitalise on the gold rush, allocating capital and talent into the city to capitalise on the opportunities created through government legislation. Aspiring entrepreneurs walked around the city with business plans, their eyes brimming with hope and anticipation, as they looked for funding to seed industries from corner coffee shops. And the latest skyscrapers rose in front of our eyes. A state of continuous motion No history book records the innumerable number of buildings that were on the verge of stalling, only to be rescued at the last minute by an angel investor, with prices that cannot be conceived of even today. Even as the global financial crisis hit our shores in 2008, the will to move forward was always present, given the entrepreneurial mindset, as the need to expand — always part of the biological imperative — became imbibed into the city’s fabric. This nuanced history of the pioneering days is the second reboot the city witnessed — the first being the formation of the Jebel Ali free zone in 1985. Back then, the pioneers were the traders, moving goods across borders, and setting up shop to allow for a seamless and efficient transportation network. Then, as in 2002, the fuse that was lit was through the SME sector, and in both cases, there are innumerable anecdotes of upstarts that made it big in the city that never stayed content with staying still. Today, with the establishment of new suburbs, scarcity has given way to excess. There is plenty of choice as to where to live, and with relaxed regulations, co-working and co-living concepts have sprouted up as young companies vie for the marketplace. Everything again seems up for grabs, and everybody asks “Will we make it?”

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Will Dubai, the dauntless tightrope walker which has never yet fallen, get a charley horse in the middle of the high-wire? Those of us, like myself, who have never abandoned Dubai, tell ourselves that it will not fall, for we cannot imagine the world without great cities like Dubai. Walking down DIFC or Citywalk, looking at the blinking lights and searching for the newest eatery, we marvel at the lack of a sign of the old life. The gold rush has mutated into the newer industries of fintech and e-commerce. But the gold rush is still there. In the past we watched events, even as we had no control over them. Today, we feel much the same way. In Dubai, the rapid change of events forces you to look inward, to search for what endures, the zeitgeist that survives and thrives at each stage of the economic cycle. Give Dubai half a chance, and it will turn you into a philosopher. Source: Gulf News Back to Index

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OPINION: THERE'S NO PLACE LIKE HOME Friday, Aug 23, 2019 Affordable luxury is becoming a buzzword among Dubai property agents, as prices become more accessible, but for some, the challenge of getting a mortgage is the biggest stumbling block Home ownership in the United Arab Emirates has always been well below the global average. An HSBC survey two years ago found that only about 28 percent of the population own the home they live in, compared to 64.5 percent in the United States and 63.5 percent in the United Kingdom. At the same time, the HSBC survey found that people were aspirational about getting their hands on the keys to their own place. Biggest barrier Over 80 percent of UAE residents who were tenants told the survey they were hoping to stop renting and buy a home within the next five years. Last week, I spoke to a number of real estate experts about what the latest trends were in the market. One interesting point to emerge was that people are keen to buy but funding is the big barrier. “Buyers need around 33 percent of the property value in order to purchase. Allsopp & Allsopp conducted a survey amongst tenants across the city and asked 100 people if they would buy if they could get a 95 percent loan. Seventy seven people out of 100 said they would – the sentiment is there, unfortunately the ability is not,” Lewis Allsopp, CEO of Allsopp & Allsopp, told us. Squeezing the rules A number of years ago, the government changed the mortgage deposit rules in order to stop the market from overheating; that solved the issue at the time, but now, with oil prices down and the economy a lot slower, the problem is reversed and the market really needs a booster. So, do the mortgage rules need to be relaxed again so those who want to get on the property ladder can get access to funding, especially at a time when there’s no shortage of units coming online in some of the most sought-after locations in Dubai? Downtown Dubai will have 7,300 apartments added by the end of 2020, Dubai Creek Harbour will have an additional 4,600 units, while Palm Jumeirah is expected see an additional 3,700 homes by the close of next year. Those who do have the funds to buy are certainly taking advantage of the market. Earlier this month, a senior official at Dubai government-owned property developer Nakheel said demand for luxury homes in the emirate had remained strong, as prices became more affordable. “What I noticed last year was the supply in luxury had reduced and the supply in the lower budget housing had increased,” Aqil Kazim, Nakheel’s chief commercial officer, said in a television interview with Bloomberg. “Today we have a strong demand on luxury because of that limited supply in luxury that happened last year. This has been a blessing in disguise as it has made property very affordable for new customers,” he said. High-end buyers Allsopp & Allsopp has seen this too and reported that it had seen a 23 percent increase in those classed as luxury buyers – those with a budget of more than AED5m ($1.36m) to spend.

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

Villa sales usually make up the bulk of luxury sales and, according to real estate portal Property Finder, villa prices in Dubai have dropped 4.3 percent in the first few months of 2019.

Another interesting trend to emerge from the Allsopp & Allsopp data was that new tenant registrations have grown year-on-year over the last five years, up by 31 percent in the second quarter of this year. By comparison, the number of new buyer registrations increased 37 percent in Q2 of 2019, compared to just 16.5 percent in Q2 last year and 12 percent in Q1 this year. “The cycle that we see in Dubai is that people will rent for a couple of years and then, if they see themselves in Dubai for at least the mid-term, look to purchase,” Lewis Allsopp says. So, it comes down to the old issue: people are keen to buy but they don’t have access to the funds right now. Unless the rules change, it seems the only option is to starting saving, and there have been many reports that have already told us that residents in the UAE aren’t great at that. Real estate data company ValuStrat says homes priced at around AED1m or less are the most popular, so if you don’t have the deposit saved up at the moment, you will need to start putting away around AED5,000 per month for the next five years to have the ready cash in the bank. If you really want to get on the Dubai property ladder, it seems it might be time to start tightening your belt first. Cancel that Friday brunch? Source: Arabian Business Back to Index

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UAE DEVELOPER AZIZI APPOINTS NEW CFO TO DRIVE FINANCIAL STABILITY Thursday, Aug 22, 2019 Azizi Developments hires Mika Toivola, who was previously CFO at Saudi construction giant Dar Al Arkan UAE-based Azizi Developments on Thursday announced it has strengthened its executive team with the appointment of a new chief financial officer. Mika Toivola, who was previously CFO at Saudi construction giant Dar Al Arkan, will help add long-term value to the financial stability and progression of the Azizi organisation, a statement said. He has over 25 years of international and UAE experience in senior executive roles at market-leading and publicly listed real estate corporations, it added. Farhad Azizi, CEO of Azizi Developments, said: “Mika is an exceptional executive who has risen rapidly in his career and has had significant responsibilities in financial management, leadership, and capital markets. His background is well suited to help us drive our strategy, adding long-term value to the financial stability and progression of our organisation. "We are committed to promoting international best practices in financial governance and compliance that will further strengthen the organisation’s performance and boost Azizi Developments’ standing locally and globally. We are delighted to have Mika on board and look forward to him overseeing our ongoing financial planning and strategy initiatives.” Azizi Developments has a portfolio worth over AED45 billion in Dubai, with more than 200 projects under various stages of development. Source: Arabian Business Back to Index

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FROM 7.9% TO 6%: UAE BANKS GET KIND OF GENEROUS ON MORTGAGES Tuesday, Aug 20, 2019 Dubai: Feel your mortgage payment is getting too heavy on monthly expenses? Chances are the bank might be willing to listen to you. More banks in the UAE are offering deals on their existing mortgage loans, where they reduce the interest rate charged for a one-year period. Banking sources say they are doing so because they get to pass on the recent cut in interest rates to their existing customers. And that by doing so, in some cases, it helps those mortgage holders who might have lost their jobs recently and who need some time to readjust. One Dubai resident was offered 6 per cent for a 12-month period as against the 7.9 per cent he had on a 20-year mortgage loan. “This is the 11th year I’m paying off the loan on the apartment — I’m still in two minds on whether to take up the offer,” the resident said. “A one-year reduction does not add up to major savings, the way I see it.” The original loan was for Dh1 million. Rate cut It was last month that the US cut its base rate by 0.25 per cent, and which is now reflected in local lending rates as well. Another cut looms on the horizon, which could happen as early as next month. Can’t local banks help further by extending their offers for longer than one year? “They have been cautious to not extend the rate advantage for a longer term as we feel their borrowing costs are still high due to economic conditions in the region,” said Dhiren Gupta, Managing Director at 4C Mortgage Consultancy. A word of 'caution' He suggests that someone wanting to sign up for the one-year reduced rate should do so with “caution”. “There might be the initial lucrative offer for one year, and thereafter it might be backed up to higher bank margins. Moreover, the exit fee (when the mortgage holder wants to shift to another lender) clauses could also differ from the original charges.” Mortgages play second fiddle to post-handover plans The UAE’s mortgage market hasn’t seen much of a growth in the last two years, as more buyers are opting to pick up their property directly from the developer through post-handover payment plans. This way, they do not need to bring in a bank to offer them mortgages, or go through the often time-consuming process that precedes winning an approval. “Mortgage-backed sales are flat to lower as developers play the role of banks,” said Uzair Razi, Chief Investment Officer at Global Capital Partners. “The down payment requirements too are low, which is why more buyers see developers as a viable alternative to whatever banks can come up with.

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

“There have been calls for interest rates to be reduced further, as well as for the down payments to be relaxed. But until such time, post-handover payment options have been the instrument of choice for buyers.”

New mortgages currently start from 2.75 per cent for the first year. “Banks are also offering fixed rate pricing for up to five years, which is in the range of 4.49 per cent depending on the offers,” said Dhiren Gupta of 4C. Stiff exit charges for mortgage transfers These are all reasons for local banks to do whatever they can to help — and retain — their existing mortgage clients. With lower growth on their new loan portfolios, there is intense competition among banks to poach an existing mortgage holder from another lender. Lock-in at 4.5% for first 3 years “My neighbour recently switched his lender and was able to get a lock-in for the first three years at 4.5 per cent,” said one Dubai resident. “But it’s not as easy as it used to be in the past — cancelling an existing mortgage contract with a bank comes to 3 per cent or so. And there is also the joining fee with the new lender, plus paying off the new mortgage registration fee at Dubai Land Department. “After all these expenses, one has to be sure that some cost benefits will still be there.” A sentiment that Gupta agrees with. “Given the significant increase in exit fees, mortgage buyouts have been limited. Also, with banks offering generous retention offers, buyouts do not appear to be a cost saving affair. For that, we need a substantial change in mortgage pricing.” Source: Gulf News Back to Index

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JEDDAH HOTEL OCCUPANCY RATE HITS NEAR-3 YEAR HIGH IN JULY Friday, Aug 23, 2019 Hoteliers in Jeddah are set to register the highest occupancy rate seen in the Saudi city since August 2016 Hoteliers in Jeddah are set to register the highest occupancy rate seen in the Saudi city for nearly three years. STR’s preliminary July data for Jeddah indicated high occupancy but double-digit rate declines due to comparison with a strong 2018. Based on daily data from July, Jeddah hotels reported a 7.3 percent increase in supply against a 9.5 percent rise in demand. STR said occupancy in the city is set to rise 2.1 percent to 76.8 percent, the highest level since August 2016. Its data also showed that average daily rate (ADR) fell 11.9 percent to SR1,239.04 while revenue per available room (RevPAR) dropped by 10 percent to SR951.36 compared to the year-earlier month. STR analysts noted that although rates were down, occupancy held strong because of high demand. While RevPAR was down year over year, the absolute level in the metric was the second-highest after June since August 2018. Source: Arabian Business Back to Index

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FLEXIBLE WORKSPACES ADAPT TO UAE’S NEW-GEN WORKERS Tuesday, Aug 20, 2019 Dubai is seeing a growing demand for flexible workspaces fully integrated with technology and services from large corporate occupiers, SMEs and entrepreneurs, as part of bigger changes in the GCC office market where co- working spaces are growing at a very high pace. A study by Servcorp estimates that flexible workspaces will constitute more than 60 per cent of the total office demand in the GCC by 2025. “As the demand exponentially grows for flexible workspace over traditional office space, so does the supply, and the UAE has witnessed a significant inflow of new co-working space operators over the past few years,” says David Godchaux, CEO of Servcorp EMEIA, which recently opened the largest co-working space in the Middle East in Riyadh, following the opening of five co-working offices in the UAE over the past 12 months. As of March there have been 50 co-working spaces and more than 80 serviced office providers in Dubai alone, according to Servcorp. “It is not difficult to build a co-working space that looks pretty on the surface, but companies, small or big, value much more than a nice desk in a pretty fit-out,” says Godchaux. “They want an integrated ecosystem to plug into seamlessly, to sell to other entrepreneurs and companies, while lowering their overhead costs with real quality support — all in a flexible manner, with no long-term commitment to salaries or employment costs. They value these aspects in so many more ways than just a desk and a beautiful boardroom.” Company registration on a desk or a virtual office are gradually becoming possible across the region, with Dubai’s Department of Economic Development (DED) spearheading such initiatives, as authorities help entrepreneurs in keeping overhead costs low and simplifying registration. How millennials work A recent survey in the Middle East and North Africa (Mena) reported that young workers are changing workplace dynamics to reflect their priorities, says Prabhu Ramachandran, founder and CEO of Facilio Inc. Gallup’s How Millennials want to Work and Live report rates the generation as “exceptionally purpose driven”, with the expectation that employers adapt to their standards. They represent $1 trillion (Dh3.67 trillion) in consumer spending and 73 per cent say they’d spend more to support sustainable products and companies. This influence will be especially significant in the Middle East, with a younger workforce expected to be 75 per cent of the total number of regional employees by 2025. Sixty-three per cent of the region’s entrepreneurs are already less than 35 years of age, and 33 per cent of them want to make a positive economic impact on the community, according to HSBC’s 2018 Essence of Enterprise report. According to Ramachandran, this shift in perspective isn’t lost on business leaders either. SoftBank, creator of the world’s largest venture capital fund, has raised its stake in WeWork — currently the world’s most recognised brand in co-working — by 25 per cent, to a total of about $10.5 billion. Proptech accelerated last year with nearly $4 billion invested across the smart buildings sector, and the stage set for an even larger scale of transformation. A recent report by KPMG states that smart city development in Mena is expected to double to $2.7 billion from $1.3 billion in the next four years. While the initial enthusiasm for co-working solutions was muted in the region, July saw the launch of the Servcorp Business in Riyadh, which is an entire building offering state-of-the-art and tech-driven co-working facilities across 29,000 sq ft of shared workspace. Earlier this year saw global business leader Honeywell Building Solutions sign MOUs to implement smart building projects in the UAE.

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

Data-driven insights

“Buildings consume 40 per cent of the world’s energy — the vast majority of which is produced using fossil fuels,” says Ramachandran. “Optimising the sustainability profile of pre-existing and future built infrastructure is one of the most consequential steps we can take towards a more sustainable world. While visibility into operational performance, energy spend and costs is standard among manufacturing, logistics or retail businesses, legacy commercial real estate was locked into an outdated model. A concurrent change of perspective among businesses, as well as regulatory bodies, is now driving the adoption of data-driven insights and enterprise-wide operation and management platforms.” In light of changing workplace trends, contemporary facilities managers (FMs) and organisations are orienting their thinking towards crafting ultra-responsive, real-time, modern facilities experiences to cater to the expectations of this growing young workforce. “Connected buildings, empowered by AI and IoT-led facilities management, are emerging as the crucial link to support the smart and intelligent buildings that the youth entering the workforce are now expecting,” says Ramachandran. Source: Gulf News Back to Index

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IMKAN APPOINTS CHINESE FIRM TO BUILD PIXEL PROJECT IN ABU DHABI Monday, Aug 19, 2019 Located within Makers District on Reem Island, Pixel is an 18 hectare waterfront community comprising 525 residential units Developer Imkan has appointed Chinese construction company CNTC as main contractor for its seven-tower Pixel development in Abu Dhabi. The company said in a sttement that work is due to begin immediately with completion slated by the end of 2021. Located within Makers District on Reem Island, Pixels is an 18 hectare waterfront community comprising 525 residential units. Imkan CEO Walid El-Hindi described CNTC as “one of the biggest construction companies in China” and said its agreement with Imkan underscored the UAE’s support of China's Belt and Road Initiative. He added: “We are looking to the future and the union of our companies is a reflection of the close relationship the UAE shares with China, a relationship that is only set to grow.” Vice President of CNTC, Xinrong Xu, added: “We welcome this collaboration... Through this partnership, CNTC and Imkan will translate our shared foresight for Pixel into reality." Pixel has been designed by Dutch architects MVRDV whose previous work includes the Markthal in Rotterdam, Tianjin Binhai Library in China, The Stack in Melbourne, and RED7 in Moscow. Pixel’s seven towers, incorporating residential apartments, co-working office space, F&B and retail, will form a key part of a new neighbourhood being built in the UAE capital. With a built-up area of approximately 83,000 sq m, Pixel will offer residential units within 7 mixed-use residential towers that frame a pedestrianised plaza, home to over 3,500 sq m of F&B, retail and offices, as well as a signature water feature. The Pixel community will be located just steps away from The-Artery, Imkan's hybrid parking garage and event space. Source: Arabian Business Back to Index

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ARABIAN CENTRES' PROFITS REACH $60.53M Wednesday, Aug 21, 2019 The Saudi mall operator went public in May Saudi mall operator Arabian Centres’ Q1 consolidated net profit almost tripled to $60.53 million, largely driven by higher occupancy, the company has announced. The firm – which went public in May – reported that revenues went up 2.5 percent to SAR 572.5m ($152.65m), according to Arab News. In a statement, the group said its improved performance was largely driven by discounts offered to tenants, which in turn helped drive rental revenues. Across all its malls, occupancy reached 93.2 percent, up from 92.4 percent the previous year, while finance costs dropped 65 percent to SAR 73.9m ($19.7m). Retailers in the region have faced increasing competition from online shopping and lower purchasing power among visiting tourists. “Faced with the rising challenge of online shopping, the brick-and-mortar retail segment has sought to diversify its offering to secure its customer base, providing an increased range of leisure and entertainment facilities,” Oxford Business Group said in a report on the Saudi retail sector. “The reintroduction of cinemas to the kingdom in April last year…is expected to increase retail football,” the report added. Arabian Centres plans to expand to 27 malls over the course of the next four years. Source: Arabian Business Back to Index

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EMAAR UNIT REJECTS LAWSUIT OVER EGYPT PROJECT LAND OWNERSHIP Thurday, Aug 22, 2019 Emaar Misr CEO hits out at 'utterly false' claim by Egyptian businessman which is set to go to court in September Emaar’s Egyptian portfolio is worth about 53 billion Egyptian pounds ($3.20 billion) and Marassi is one of Emaar Misr’s largest projects. The Egyptian unit of Dubai-based developer Emaar Properties has rejected an "utterly false" claim to part of land where it is building the Marassi residential and leisure development on the country’s North Coast. Egyptian businessman Wahid Raafat filed a lawsuit against Emaar Misr claiming more than 400 acres of the site which will be heard in court next month, according to his lawyer. But Emaar Misr dismissed the claim, saying there were no legal grounds to support it. "The company further asserts that the Marassi project land was duly registered with the Real Estate Registration Office in the name of Emaar Misr, following a full review by the Real Estate Registration Office of all third-party claims submitted to it, including the above-mentioned frivolous claim," said CEO Mostafa El Kady in a statement. "The registration authorities rejected all these claims and concluded the registration in favour of Emaar Misr. It is public knowledge that Emaar Misr has purchased the Marassi project land by way of public auction conducted by the Government of Egypt and that it has paid the purchase price in full," he added. Emaar Misr said it intends to address the "false claim" through legal channels. Emaar’s Egyptian portfolio is worth about 53 billion Egyptian pounds ($3.20 billion) and Marassi is one of Emaar Misr’s largest projects. Source: Arabian Business Back to Index

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DAMAC IN TALKS WITH DICO OVER AL SUFOUH, BUSINESS BAY LAND PLOTS Monday, Aug 19, 2019 Dubai developer will reveal value of acquisitions once deal is completed Damac delivered 1,476 units in the first half of the year compared to 1,490 units during the same period last year. Leading Dubai developer Damac Properties is in talks with DICO Properties to acquire two plots of land in Al Sufouh and Business Bay, according to a statement on the Dubai Financial Market (DFM). Damac will reveal the value of the transaction once it is completed, and will also share the deal’s impact on its income and profits. The company had previously assigned its group financial officer to undertake negotiations. Damac’s Q2 profit fell 87 percent amid declining revenue, having dropped to AED50.6 million ($13.78m), down from AED378.2m in the same period last year. The developer's revenue fell to AED971.1m, a drop of 45 percent. "We remain financially robust, and with the UAE economy poised for growth in the coming years, we are looking forward to an upturn in the real estate sector,” Hussain Sajwani, chairman of Damac Properties, said last week. He added that the company will continue to focus on deliveries this year. Damac delivered 1,476 units in the first half of the year compared to 1,490 units during the same period last year. The handovers included the first for its largest master development Akoya, with nearly 315 units in the Claret cluster completed and in the process of being handed over to customers. The company also completed two of its projects in Dubai, Ghalia and Tower 108. Source: Arabian Business Back to Index

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AFFORDABLE LUXURY: DUBAI HOME BUYERS LOOK TO UPGRADE AS PRICES CONTINUE TO FALL Tuesday, Aug 20, 2019 Declining prices and lower supply has meant more residents are looking to enter the luxury segment Earlier this month, a senior official at Dubai government-owned property developer Nakheel said demand for luxury homes in the emirate had remained strong, as prices became more affordable and supply slowed. “What I noticed last year was the supply in luxury had reduced and the supply in the lower budget housing had increased,” Aqil Kazim, Nakheel’s chief commercial officer, said in a television interview with Bloomberg. “Today we have a strong demand on luxury because of that limited supply in luxury that happened last year. This has been a blessing in disguise as it has made property very affordable for new customers.” Arabian Business asked a number of Dubai real estate experts if they were also seeing an upsurge in demand for luxury and any other major trends in the local market. Global outlook Helen Tatham, associate director of prime residential at Savills, said Dubai is currently one of the most affordable locations for wealthy individuals looking to buy luxury property. “According to Savills World Cities Prime Residential Index, Dubai’s high-end prices have declined by 3.8 percent in the last 12 months. This makes Dubai the third most affordable major global city for purchasing prime real estate, at around $600 PSF [per square foot] and, with clear tax benefits and quality of lifestyle, it is increasingly attractive as a location of choice,” she said. With prices more affordable, Dubai estate agency Allsopp & Allsopp have also seen an uptick in the number of buyers looking to enter the luxury segment. “Allsopp & Allsopp have seen an increase in what we would consider to be a luxury buyer, those with a budget above AED5 million, by 23 percent in H1 2019 compared to H1 2018. It could be argued that this increase is due to decline in pricing and buyers taking the opportunity to move into a luxury property whilst it is within their reach,” said Lewis Allsopp, CEO of Allsopp & Allsopp. Popular villa areas Villa sales usually make up the bulk of luxury sales. According to real estate portal Property Finder, villa prices in Dubai have dropped 4.3 percent to an advertised median price of AED 855 per square foot compared to H2 2018. They are 12.1 percent cheaper than they were in 2017. Areas that have proved popular for villas include those on the more affordable end. The most popular villa community was Dubai South, with 434 sales off-plan sales. Other popular areas for villas and townhouses were Town Square, Arabian Ranches 2 and Dubai Hills Estate.

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However, the portal found that villa communities that experienced the biggest decline in sales prices in the first six months of this year were Damac Hills (down 8.2 percent), Emirates Hills (down 6.6 percent), Green Community

Motor City (down 5.4 percent), Dubai Silicon Oasis (down 5.2 percent), Al Furjan and The Villa (down 5.1 percent). “As new affordable villa communities are getting completed and handed over, we have seen a migration to these communities from popular areas such as Dubai Marina. Families are choosing to live a little further out in the suburban areas of Dubai in order to gain access to a larger property with outside space. We have also seen a large influx of renters converting to home buyers, especially in these new villa communities,” said Lynnette Abad, director of data and research at Property Finder. Older communities The segment of the luxury market that has suffered is the expensive, older communities, such as some of those in Palm Jumeirah or Emirates Living. “We are starting to see the availability of property in the secondary market dry up as those with no pressing need to sell hold on to their assets to ride out the current price cycle,” Richard Waind, managing director at real estate agency Better Homes, was quoted as saying in a recent report with regards to the high end luxury segment. Price pressure The issue when it comes to those aspiring to the luxury segment is raising funds, and this is the major challenge according to Allsopp & Allsopp. “Prices of property is down, and there is a lot of conjecture as to why this is. My personal opinion is this is due to affordability issues. There is positive sentiment to buy, but there is just no easy way to get on the property ladder due to the high loan to value,” Lewis Allsopp said. “Buyers need around 33 percent of the property value in order to purchase. Allsopp & Allsopp conducted a survey amongst tenants across the city and asked 100 people if they would buy if they could get a 95 percent loan. 77 people out of 100 said they would - the sentiment is there, unfortunately the ability is not,” he added. Source: Arabian Business Back to Index

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REVEALED: HOW FAR UAE PROPERTY PRICES HAVE FALLEN SO FAR IN 2019 Tuesday, Aug 20, 2019 Latest data reveals that prices for apartments in Dubai have continued to fall over the past six months Dubai apartment sale prices in the first half of 2019 are 3.9 percent cheaper than six months ago, according to new data. The Property Finder Trends report showed that apartments for sale fared worse than rentals, with low to mid- single-digit percentage drops right across the country. For Dubai apartments, the median advertised price is AED1,163 per square foot, while Ras Al Khaimah apartments for sale had the biggest decline in prices in H1, dropping 6.2 percent to an advertised median price of AED560 per square foot, half the price in Abu Dhabi which dropped 4.4 percent to AED1,120. Ajman, with a median square foot advertised price of just AED269, is still by far the cheapest in the UAE, the report showed, as prices in the emirate dropped 3.9 percent in H1. Sharjah apartments held their value best in H1 as they have done for the last couple of years. They declined by 1.5 percent during this half-year to a median advertised price of AED475 per square foot. Apartment communities in Dubai that witnessed the biggest sales price drop in H1 were Al Sufouh (-10.5 percent), Remraam (-9.6 percent), Downtown Dubai (-7.4 percent), Old Town (-7.2 percent) and Jumeirah Lakes Towers (-6.5 percent). Mirdif, Jumeirah Village Triangle, Dubai South, Arjan and Al Furjan stayed resilient and resisted the price drop, the report added. Villa prices in Dubai dropped 4.3 percent to an advertised median price of AED 855 per square foot compared to the second half of 2018. Ajman’s villa prices were flat, dropping just 0.6 percent compared to H2 2018 while Sharjah dropped 1.6 percent and Ras Al Khaimah experienced a drop of 5.9 percent. Abu Dhabi bucked the national downward trend, with a 1.5 percent increase to a median villa advertised price of AED827 per square foot. Villa communities in Dubai that experienced the biggest decline in sales prices in H1 were Damac Hills (-8.2 percent), Emirates Hills (-6.6 percent), Green Community Motor City (-5.4 percent), Dubai Silicon Oasis (-5.2 percent), Al Furjan and The Villa (-5.1 percent). Communities like Living Legends, District One in Mohammed Bin Rashid City, Mirdif, Green Community DIP and Palm Jumeirah Signature Villas recorded zero or a very marginal drop in villa sales prices. “As new affordable villa communities are getting completed and handed over, we have seen a migration to these communities from popular areas such as Dubai Marina. Families are choosing to live a little further out in the suburban areas of Dubai in order to gain access to a larger property with outside space. We have also seen a large influx of renters converting to home buyers, especially in these new villa communities,” said Lynnette Abad, director of Data & Research, Property Finder. Although overall sales transactions in Dubai remained steady and in line with 2018, the type of properties being purchased is changing as apartment transactions were down by 5 percent but villa sales were up by 35 percent.

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Downtown Dubai saw the most apartment sales in H1 at 1,586, of which 1,288 were off-plan transactions while Dubai South with 434 sales (all off-plan) had by far the most villa/townhouse transactions.

Source: Arabian Business Back to Index

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UAE CONSTRUCTION SECTOR TO GROW UP TO 10% IN 2020 Monday, Aug 19, 2019 The construction sector in the UAE is expected to grow 6 to 10 per cent in 2020, the majority of industry executives surveyed by KPMG said. However, time and cost overruns (cited by 44 per cent of executives) are still seen as substantial hurdles facing projects, alongside gaining funding (31 per cent). “The construction sector is the lifeblood of the UAE economy and it is very encouraging to see that the industry is expecting single to double-digit growth this year,” said Sidharth Mehta, a partner at KPMG Lower Gulf. Some 53 per cent of executives forecast growth of 6 to 10 per cent next year, and a further 20 per cent expect the market to grow by more than 10 per cent. However, 27 per cent expect the market either to remain flat or only achieve slower growth of up to 5 per cent. When asked which areas need to improve to enhance industry performance, 42 per cent of those surveyed highlighted human capital, 33 per cent cited technology and 25 per cent said governance and processes. “As the pace of disruption accelerates, leaders will have to consider implementing a three-pronged approach to rationalise governance and controls, optimise human performance and innovate with technology, to become more future-ready,” Mr Mehta said. The UAE is already seeing technological disruption in the sector, through 3D printing and automation. According to KPMG’s global findings, the use of robots, unmanned aerial vehicles (UAV) and "intelligent" tools and equipment will continue to automate many of the less complex and high-risk tasks on construction sites, leading to a leaner, more specialised and digitally-enabled workforce. Looking ahead, more than 80 per cent of UAE industry leaders felt that digital modular fabrication will be widely implemented within the next 10 years. Some 56 per cent expect intelligent construction equipment to be used and 25 per cent expect more use of robots. The use of data analytics and predictive modelling will also play an important role in the next five years. People still form the backbone of the industry and leaders need to invest in human capital to drive overall performance and ensure on-time project delivery, according to the survey. “Construction companies that continue to invest in people and implement a technology-enabled strategic roadmap will be well positioned to face industry disruption and improve their capital and program performance, putting them on the fast-paced track to growth”, Mr Mehta added. Source: The National Back to Index

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DUBAI -LISTED BLME BUYS $32.6M EDINBURGH OFFICE BUILDING Wednesday, Aug 22, 2019 Abu Dhabi Islamic Bank in the UK (ADIB UK) has provided financing for the Bank of London and the Middle East (BLME), to buy a AED120 million ($32.6m) Grade A office building in Scotland. The Foster and Partners-designed building in Edinburgh, which has previously won the Scottish Design Award for Commercial Interior and the British Council for Offices National and Regional Awards for Commercial Workplace, forms part of the city’s waterfront regeneration area. The building is let to GB Gas Holdings and guaranteed by Centrica. ADIB recently reported that Middle East investor appetite for UK commercial real estate assets is being driven by a desire to diversify portfolio risk, the weakened pound, attractive rental yields in the strong performing regional markets and long-term security of income. Paul Maisfield head of UK Real Estate at ADIV UK, revealed there was interest in the property from ten investors, with a strong prevalence from the Middle East. “This latest transaction is typical of demand we are seeing amongst our client base. Over the last 18 months, 70 percent of our financing transactions have comprised regional investments, including Aberdeen, Bristol, Coventry, Leeds and Manchester,” he said. It comes after BLME acquired Atlantic Quay 1 in Glasgow for $32.5m last year. Source: Arabian Business Back to Index

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HOMEFRONT: 'WHAT ARE THE BEST PLACES TO LIVE IN DUBAI FOR A NEW ARRIVAL?' Wednesday, Aug 22, 2019 I am moving to Dubai early next month and would like recommendations for the best place to live in the emirate. My company has given me a housing allowance of Dh125,000 for my wife and me. I will be working in Business Bay and initially want good public transport connections as I will need to retake my driving test to secure a licence in the Emirates, which could take a while. What areas do you suggest in Dubai that will fit comfortably within my budget? I would prefer an apartment and would like two or possibly three bedrooms that can accommodate visiting family members and the possibility of us having a child in the future. I would also like a building that has a gym and a pool. What do you suggest? MK, Pakistan Renting in Dubai is relatively easy and there are many options open to you. The current rental market favours the tenant so you should have no problem at all in finding your ideal home. The first thing you have to sort out, however, is your residency visa. Without this, you will not be able to rent anywhere. Ensure that the visa process is at the very least, under process with a letter from your employer confirming the same. Once this is in hand, the areas I recommend you should look at are Business Bay itself, Downtown/Old Town and, although further afield, Marina/Jumeirah Beach Residence and Jumeirah Lakes Towers. Business Bay This area has an excellent choice of apartments and its own metro station. It is a sought-after location, being next to downtown and just behind Sheikh Zayed Road, and with the development of the Dubai canal there are lovely water views from many of the towers here. Your rental budget will stretch to spacious two and three-bedroom apartments in this location. The main buildings to consider would be: Executive Towers, Damac Towers, Majestine, Windsor Manor, Westburry and Bays Edge. Downtown Downtown is the home to the Burj Khalifa, the Dubai Mall, Dubai Opera, the dancing fountains and is advertised as the "centre of now". As you can imagine, this location is prime but there are many options here too. If you wish to go for three-bedroom apartments you will be able to find these in Damac Maison and Upper Crest only. The choice widens a great deal if selecting two-bedroom apartments. In this category, you will be able to look at many different options along Sheikh Mohammed bin Rashid Boulevard, including the area called "Old Town." Downtown is served by the Burj Khalifa metro station and is set back from Sheikh Zayed Road. Dubai Marina If you’re OK with a commute of 20 to 25 minutes, then you can also look at Dubai Marina/JBR. Dubai Marina’s location is great in that it is very close to the beach whereas JBR is on the beach. Dubai Marina is consistently the most popular living destination for expats and has a wide variety of residential towers to choose from. You can avail of two and three bedroom units in both locations. The Marina has two Metro stations and a tram system and easy access to Sheikh Zayed for when you do get your car.

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Jumeirah Lakes Towers

Lastly I suggest you also look at JLT. This area has approximately 80 mainly residential towers with different styles and sizes. JLT gives you a good selection of apartments to choose from so choose wisely. The towers surround two lakes and a park and are set back from Sheikh Zayed, again served by the same two metro stations as Dubai Marina. Making a decision All of the above suggestions will fall into your chosen categories in terms of budget, amenities, transportation and type of apartment. If you are able to pay the rent in one cheque, this will add to your negotiating power when it comes to the actual final rent. On the one hand, I would suggest you take your time in selecting your property and definitely recommend you enlist the services of a RERA-qualified agency. Renting in Dubai, however, doesn’t take long so I advise you to start looking within two to three weeks of a target move-in date. I would say that a large proportion of all apartments available for rent are ready for immediate occupation. Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for 35 years in London and Dubai The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to [email protected] Source: The National Back to Index

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IMKAN EYES EGYPT EXPANSION WITH SECOND MAJOR PROJECT Tuesday, Aug 20, 2019 Imkan Properties, an Abu Dhabi-based developer, is boosting its portfolio of investment in Egypt with plans for a second major development as it begins handing over units from its Dh15 billion Alburouj development in Cairo, its chief executive said. “We believe in long-term [growth] aspect of Egypt as it is very stable from an investment point of view. We’ve been seeing the level of changes the government is doing, which is very positive and very transparent,” Walid El Hindi told The National on Monday. “They [the government] have put together the new investment law and the new urban community associations have been very helpful," he said, adding that transparency in the country's real estate law and land prices makes Cairo an attractive investment destination. The company, a subsidiary of private equity firm Abu Dhabi Capital Group, has bought a 166-acre plot from the Egyptian government to develop a mixed-use project in New Cairo near the American University campus for 4bn Egyptian pounds (Dh885 million). It plans to begin developing this within the nine to 10 months and is expecting to complete the scheme in five years, he said, without revealing the overall cost of the development. Imkan, which launched its mixed-use Alburouj project three years ago, delivered the first five units to customers this month, before the Eid break. The development, catering to middle income and upper middle-income segments, is expected to be completed in 10 years. “We just handed over our first five units to our customers, which is a big milestone for us. There are over 3,000 units under construction currently in Alburouj,” Mr El Hindi said. The project is being built on 5 million square metres of land and includes a mall, a sporting club, a school and a cultural hub. When completed, it will contain 15,000 units including apartments and townhouses, he noted. Imkan is financing the development through a mix of equity, proceeds from sales and loans from banks, he added. “The demand is definitely there and will continue to be there. The projection is that Egypt in 2050 will have a 150 million population. The true opportunity is in understanding the new customer,” Mr El Hindi said. The company is currently working on 26 mixed-use projects worth Dh100bn in different countries including the UAE, Egypt, Morocco, Seychelles and Sri Lanka. Imkan is building several projects in its home market of Abu Dhabi, including Al Jurf located between Dubai and Abu Dhabi; Pixel, a mixed-use project in its Makers District master development on Reem Island; Nudra, a luxury beachside villa community, and Sheikha Fatima Park, with retail and food and beverage outlets. The company this week appointed China’s CNTC as the main contractor for the Pixel project, which will contain seven towers. Work on the site will begin immediately and the project is scheduled for completion in the fourth quarter of 2021, the company said in a statement earlier this week.

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Conditions remain tough in Abu Dhabi's residential property market, with JLL reporting a 15 per cent year-on-year decline in apartment prices and a 6 per cent drop in villa prices in the second quarter but the stock of new homes built in recent years has only increased gradually, meaning the market does not face the same supply pressures as in neighbouring Dubai. Moreover, despite the headwinds, the overall property market situation, he said, is positive on the back of various government initiatives including the introduction of long-term visa for investors. JLL's report also said the new residential freehold law "formalising foreigners’ rights to own land and property within Abu Dhabi’s investment areas" is also likely to stimulate demand. Source: The National Back to Index

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VILLA SALES RISE IN DUBAI AS CHEAPER STOCK COMES ONTO THE MARKET Tuesday, Aug 20, 2019 Villa prices are falling in Dubai as newer, more affordable stock comes onto the market, according to real estate listings portal Property Finder. Villas are 12.1 per cent cheaper than they were in 2017 and and 4.3 per cent more affordable than in the second half of last year, falling to an advertised median price of Dh855 per square foot. As a result, villa transactions rose 35 per cent in the first half of this year compared to last year, the report said. New, affordable off-plan offerings in Dubai South, Dubailand and Town Square were popular with buyers, according to Property Finder. “As new affordable villa communities are getting completed and handed over, we have seen a migration to these communities from popular areas such as Dubai Marina,” said Lynnette Abad, director of data and research at Property Finder. “Families are choosing to live a little further out in the suburban areas of Dubai in order to gain access to a larger property with outside space. We have also seen a large influx of renters converting to home buyers, especially in these new villa communities.” Villa communities in Dubai where sales prices declined most in the first half of 2019 were Damac Hills at 8.2 per cent, Emirates Hills, 6.6 per cent, Green Community Motor City, 5.4 per cent and Dubai Silicon Oasis, down by 5.2 per cent. Al Furjan and The Villa prices were 5.1 per cent lower. Communities such as Living Legends, District One in Mohammed Bin Rashid City, Mirdif, Green Community DIP and Palm Jumeirah Signature Villas recorded zero or a very marginal drop in villa sales prices. In terms of transactions, Dubai South with 434 sales (all off-plan) had by far the most villa and townhouse transactions in the first half of 2019. Two Emaar projects targeted at mid-upper income end-users were also popular, with Arabian Ranches 2 recording 331 transactions, 231 of which were off-plan, and Dubai Hills Estate 208, all but one of which were off-plan sales. Villa sales at Town Square came in at 188, with 128 off-plan sales. “For villas, there have been more transactions but at lower values, mostly in the new, affordable communities targeted at the low- to middle-income segment,” the report said. Meanwhile, some of the higher value, older luxury villa communities have not performed as well, given the availability of newer, cheaper villas. “Vendors marketing unrenovated, poorly-maintained prime located properties in the Palm Jumeirah or Emirates Living communities are at the mercy of the market and some have seen significant losses,” the report said. Property Finder also said Ajman’s villa prices were more or less flat, easing down just 0.6 per cent compared to the second half of 2018. Sharjah prices declined 1.6 per cent, while Ras Al Khaimah villas experienced a more significant drop of 5.9 per cent. Abu Dhabi bucked the national downward trend, however, with a 1.5 per cent increase to a median advertised villa price of Dh827 per square foot.

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Apartment sale transactions are down 5 per cent in Dubai despite prices dropping 11.7 per cent over the past two years and 3.9 per cent compared to the last half of 2018. For Dubai apartments, the median advertised price is

Dh1,163 per square foot. Apartment communities in Dubai that witnessed the biggest sales price decline in the first half of 2019 were Al Sufouh at 10.5 per cent, Remraam at 9.6 per cent, Downtown Dubai at 7.4 percent, Old Town at 7.2 per cent and Jumeirah Lakes Towers, which slipped 6.5 per cent. Apartment prices at Mirdif, Jumeirah Village Triangle, Dubai South, Arjan and Al Furjan were unchanged in the period. “Dubai apartments remain the preferred property type and, although their year-on-year transaction numbers have declined, the value has increased. This is reflective of an end-user driven market," Property Finder said. “End-users tend to buy larger apartments and those in prime locations, while studios and one-bed apartments that offer higher yields are preferred by investors.” Downtown Dubai saw the most apartment sales in the first half 2019 at 1,586, of which 1,288 were off-plan transactions. Dubai Hills Estate and The Lagoons in Dubai Creek Harbour - both of which are Emaar developments - were also popular, the report found. Source: The National Back to Index

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CHINA’S APPETITE FOR DUBAI PROPERTY GROWS AMID STRENGTHENING OF SINO- UAE TIES Sunday, Aug 18, 2019 A large number of Chinese people are investing in Dubai's real estate market due to strengthening of ties between the UAE and China and implementation of the Belt and Road Initiative and other developments, according to a property consultant with Coldwell Banker UAE. Xiaoyun Du said that current trends in both the Chinese stock market and its property market, both of which have been experiencing rapid growth in recent years, have encouraged upper-middle class Chinese nationals to invest in overseas markets, including in Dubai. Depreciation of the yuan, as well as the high rental yields on offer in Dubai, are other factors that are influencing Chinese investors, Ms Xiaoyun said. Using data from Dubizzle, she identified Downtown Dubai, The Greens and International City as the three most popular areas for Chinese investors to buy ready properties, whereas Dubai Creek Harbour, Meydan and Madinat Jumeirah Living top the areas in terms of off-plan sales. “Location, annual yield and selling prices are the three of the key factors considered when making purchasing decisions,” Ms Xiaoyun said. In Downtown Dubai, the average price of resale properties is between Dh1,700 and Dh2,200 per square foot, which is equivalent to one quarter to one-sixth of the selling price of real estate in Downtown Shanghai, she said. “For Chinese investors, this price for a fitted flat with a free parking in the heart of Dubai is very cost-effective. The yearly yield in Downtown Dubai is around 6 per cent to 7 per cent, slightly lower than the annual average yearly yield of 8 per cent in Dubai, but because of the above two advantages, Chinese buyers accept this.” The Greens is another popular choice for Chinese investors due to its proximity to Dubai Internet City and Dubai Media City. The average selling price within The Greens is between Dh1,200 and Dh1,500 per square foot and average yields in the community are around 8 per cent. International City is close to Dragon Mart, the retail and wholesale development that has become one of the biggest hubs for Chinese traders in the Mena region. The average selling price in International City is Dh700 to Dh980 per square feet, meaning properties are more affordable, and it offers some of the highest rental yields in Dubai of 8 to 9 per cent, Ms Xiaoyun said. In off-plan properties, Dubai Creek Harbour is a new development by Emaar Properties and Dubai Holding, and Chinese investors have already become the number one investors in the area. Last year, master developer Emaar Properties announced plans to build a major 'Chinatown' retail and leisure area within the six square kilometre development. “Emaar’s development track in Dubai, including Burj Khalifa and whole Downtown area, instills confidence in Chinese nationals considering investing in projects by the developer. Besides, based on their investment experience in major cities in China, investors are confident that such ‘city hub’ developments will provide good returns in the near future.”

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Investments by Chinese nationals accounted for Dh1.7 billion in the first three quarters of 2018, making them the sixth-most active buyers of property, according to the Dubai Land Department. Dubai is targeting Dh1bn of

Chinese real estate investments in 2019. The number of Chinese expats living in Dubai has increased by 53 per cent over the past five years, with around 230,000 Chinese nationals currently living in the emirate and around 4,000 Chinese companies operating. Figures released by Dubai Tourism yesterday also revealed that Chinese visitor numbers increased 11 per cent in the first six months of 2019. China was the emirate's fourth-biggest market for tourists, welcoming 501,000 overnight visitors from China. Ties between China and the UAE have strengthened since the visit of Chinese President Xi Jinping in July 2018. Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, also visited China last month. During his visit, a raft of new trade deals between the two countries were announced. Source: The National Back to Index

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DUBAI'S EMAAR BUYS REMAINING 35% OF RESORT DEVELOPER MIRAGE: EXCLUSIVE Sunday, Aug 18, 2019 Dubai's blue-chip property developer, Emaar Properties, completed its buy-out of development management company Mirage Leisure and Development, taking the remaining 35 per cent of the business it did not already own for Dh66.5 million. The developer secured a 65 per cent stake in Mirage in October 2015 for Dh123.5m, but financial statements filed last week show that it acquired the remainder of the firm at the end of April this year. "Managing Mirage fully is the best fit for Emaar as the company performs exceptionally well and also manages the development of Emaar’s hospitality assets," a spokesman for Emaar Properties told The National. Mirage was started in 1995 by chairman Dene Murphy, who had previously worked for Sol Kerzner's Kerzner International - the company behind the Atlantis and One & Only hotel resorts that is now owned by the Investment Corporation of Dubai (which also holds a 29.2 per cent share in Emaar). The company has developed hospitality projects such as Emaar's The Address Downtown, the Armani hotel and Opera House district in Downtown Dubai, and is also working on Vida, Palace and the Address Harbour Point hotels at the developer's Dubai Creek Harbour site. It has also developed Meraas Holding's Bluewaters Island, the St Regis Saaadiyat Island and the Madinat Jumeirah project for other developers, and is currently working on The Island - a man-made island being developed near Burj Al Arab that will eventually contain Dubai-based offshoots of Las Vegas hotel brands MGM and Belaggio. Emaar Properties' financial statements also revealed some of the terms of the Dh25 billion Mina Rashid project announced in May. The scheme is a joint venture with DP World, owner and operator of the Mina Rashid Port around which a major new mixed-use project is planned containing a yacht club, 12,600 square metres of new beachfront and a waterfront retail and leisure scheme it billed as "The Dubai Mall by the sea". Accounts show that Emaar entered into a joint development agreement with Mina Rashid Properties in January, and took control of the venture at the end of June, acquiring land worth about Dh1.28bn which has been declared as an asset and a liability on its balance sheet. It also said Emaar has agreed to share 30 per cent of any future profits made from Mina Rashid over the project's lifespan. “Work on Mina Rashid is progressing as scheduled," the Emaar spokesperson told The National. "We launched residential communities in the mega-development to strong investor response, and we are planning new launches in due course. Mina Rashid has always been a 70:30 joint venture between Emaar and DP World-owned P&O Marinas.” In the first half of 2019, both revenue and net profit attributable to shareholders at Emaar Properties declined by about 4 per cent, to Dh11.57bn and Dh3.1bn, respectively. Property sales were up 52 per cent to Dh9.4bn. Source: The National Back to Index

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MORTGAGE RATES AROUND THE WORLD: DANISH BANK PAYS HOMEBUYERS TO TAKE OUT LOANS Sunday, Aug 18, 2019 The world’s headlong dash to zero or negative interest rates just passed another milestone: a bank in Denmark is paying homebuyers to take out mortgages. Jyske Bank, Denmark’s third-largest lender, announced in early August a mortgage rate of -0.5 per cent, before fees. Nordea Bank, meanwhile, is offering 30-year mortgages at annual interest of just 0.5 per cent. Years of easing by central banks hacked away at interest rates around the world, distorting the traditional economics of lending and borrowing. This is most pronounced in Europe, where a composite home-loan rate across the euro area fell to 1.65 per cent in June, the lowest since records began in 2000, according to Bloomberg. While some regions have resisted the trend, borrowing costs are at or near rock-bottom in many major world markets. That’s boosted demand from homebuyers and spurred fierce competition among lenders for their business. Here’s a snapshot of mortgage rates around the world: UAE In recent years, mortgage rates in the UAE have steadily increased in line with the US Federal Reserve rates, however this year has seen rates remain stable, with some top lenders even reducing them slightly. Average fixed rates are now at about 3.89 per cent fixed for three years and variable rates at 3.99 per cent. Rates for non-residents wanting to invest in the country have always been slightly higher than for residents, now sitting at about 4.49 per cent, according to UAE mortgage site Mortgage Finder. With the dirham pegged to the US dollar, mortgage rates in the country are influenced by the US economy and Federal Reserve's policies. Earlier this year the US Fed indicated that it would not raise interest rates for the coming year, holding steady at 2.25 per cent to 2.5 per cent. "We are hopeful that the news from the US Federal Reserve will encourage more banks in the UAE to feel confident in decreasing mortgage rates and offer more varied mortgage products to both residents and non- residents" says Chris Schutrups, managing director at Mortgage Finder. US The average American 30-year mortgage rate is 3.6 per cent, the lowest since November 2016. A resulting surge in demand for homes sent total mortgage debt to $9.41 trillion (Dh34.55tn) in the second quarter, surpassing the peak reached during the 2008 financial crisis. Mortgage brokers, too, are rushing to keep up with demand for refinancing: applications are running at a three-year high. The benefits for home buyers are muted in cities such as New York and San Francisco, however, because the boom has led to a shortage of affordable homes. France

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French mortgage rates hit a trough of 1.39 per cent on average in June, according to Bank of France data. The country’s banking industry is extremely competitive: many lenders have jockeyed to lure customers with cheaper offers. Germany German mortgage rates also reached historic lows this year, with the average 10-year loan currently under 1 per cent. Some lenders are offering rates around 0.5 per cent, according to Interhyp, a comparison website. The prospect of further declines in benchmark borrowing costs could drive many mortgage rates toward zero. This may have a limited impact on the residential market, however - only 46 per cent of Germans are homeowners, compared with an EU average of 69 per cent. UK Mortgage rates in the UK, by contrast, have been almost unchanged this year, despite a drop in overall borrowing costs amid a worsening economic outlook. The rate on a two-year fixed mortgage fell just 8 basis points from January to July, compared with a 38 basis-point drop in two-year swaps. One reason for this, says Mark Gilbert of Bloomberg Opinion, is that the Bank of England’s regulatory arm has discouraged lenders from trying to win market share by easing standards because it’s concerned about their financial strength. Hungary Mortgage costs are fairly high in Hungary because regulators steered almost all borrowers away from cheaper (but less secure) floating-rate loans. A 10-year fixed-rate mortgage is currently around 5 per cent, compared with money-market rates near zero. The attraction of security was heightened by memories of a fashion for mortgages taken out in Swiss francs before the financial crisis. The subsequent plunge in the forint against the franc hammered as many as 1 million Hungarians. Greece Mortgage rates have actually risen in Greece, burdened by sovereign and corporate debts. The average floating- rate home loan was 3.08 per cent in June, an increase of 11 basis points from a year earlier. Greek banks’ mountain of soured loans means they have become wary of extending new credit, even when secured by a house. Hong Kong Mortgage rates are also climbing in Hong Kong as the political crisis weakens the appetite for loans. Both HSBC and Standard Chartered increased effective rates by 10 basis points to 2.48 per cent in July, according to Bloomberg Intelligence. Japan The Bank of Japan’s negative-rate policy has kept home loans affordable. A 10-year fixed-rate mortgage can be had for about 0.65 per cent, and Sumitomo Mitsui Trust Bank offers a rate as low as 0.53 per cent. This has spurred property purchases, and prices, in the larger cities, helping reverse years of decline following the bursting of the market bubble in 1991. Residential land prices in the greater Tokyo area rose 1.3 per cent last year, while those outside major urban areas increased 0.2 per cent, the first rebound in 27 years. Nationwide, though, prices stand at just 38 per cent of their 1991 levels, according to the Land Ministry. Australia

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Mortgage rates have fallen about 40 basis points following the Australian central bank’s back-to-back interest rate cuts in June and July. The average standard variable rate at the nation’s big four lenders is currently 4.94 per cent.

The decline in mortgage rates, along with an easing of lending rules and the surprise re-election of the center- right government, has fired up Australia’s housing market. Following a two-year slide, property prices in Sydney have risen over the past two months. South Africa The cost of a home loan remains relatively high in South Africa. Banks’ prime lending rate is about 10 per cent and mortgage borrowers can expect to pay anywhere from two percentage points below that rate to five points above it. While banks are starting to extend more loans to compete for market share, mortgage rates are unlikely to drop much. Inflation is generally high and the central bank has held its benchmark rate above 6 per cent since 2015. Nigeria Nigeria has had double-digit inflation since 2016, with mortgage rates to match - as high as 30 per cent. Those who contribute a small percentage of their income to the state-owned bank can get a much better 9 per cent rate from the National Housing Fund. Mortgage uptake is low because of high rates, low incomes and a long wait for government-backed loans. Source: The National Back to Index

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WORK BEGINS ON $49.8M AL AIN CITY ROUNDABOUT PROJECT Sunday, Aug 18, 2019 Construction of the Asharej and Al Markhaniva roundabout development project in Al Ain city, worth $49.8 million (AED183m), has begun. The development of the two roundabouts aims to improve traffic movement and reduce congestion during peak hours as well as enhance traffic safety. The works are being carried out by Al Ain City Municipality and Abu Dhabi General Services Company ‘Musanda’. The project scope includes converting the existing Al Markhaniya roundabout (P169) to a traffic signal intersection and converting the Asharej (P170) into a tunnel. The work also includes developing the link road between the two intersections, landscaping, sidewalks and cycling paths. A statement on Emirates News Agency (WAM), said: “Execution of this project forms part of the efforts made by AAM and Musanada to realise the vision of the UAE’s leadership in providing high quality infrastructure that meets the needs of individuals and the community at large in line with best international standards, besides establishing sound infrastructure to support the local economy and sustainable development efforts.” The project is being delivered in collaboration with the department of transport, and the Integrated Transport Centre, the Abu Dhabi police headquarters and other stakeholders. Source: Arabian Business Back to Index

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DUBAI TO SPEND OVER $75.4M ON LANDSCAPING PROJECTS FOR EXPO 2020 SITE Sunday, Aug 18, 2019 The cost of Dubai Expo 2020’s irrigation and landscaping projects is expected to be over AED277 million ($75.4m). Taleb Abdulkareem Jilfar, executive director of the Infrastructure Services Division at Dubai Municipality, revealed an area of 3.57 square kilometres is expected to be ready before the official launch of the exhibition in October 2020. The municipality has delivered 863,117 plants, valued at more than AED22.5m ($6.1m), according to a report by Emirates News Agency (WAM). The event’s location, which includes 86 multi-purpose buildings, will feature large areas for open-air celebrations, decorated by plants that rely on drip irrigation techniques, including the Al Fursan Park that accommodates 2,500 people, and the Jubilee Park that accommodates 15,000 people. Ahmed Al Khateeb, CEO of Development and Real Estate Development at the Expo 2020 Dubai, said: "The expo will not only feature buildings and pavilions that will impress visitors, but also trails, fountains and parks that will capture their attention, as well as the Al Wasl Dome, which will serve as a giant screen." Al Khateeb said that an area of 220,000 square metres has been allocated for a nursery with plants and trees, which will cultivate 12,157 trees, including palm trees, over 256,000 shrubs, thousands of flowering plants and herbs, in cooperation with Dubai Municipality. He added that selected plants are either indigenous or are adaptable to Dubai’s environment, noting that expo has employed eco-friendly methods in the design and construction stages of the nursery - solar-powered lights were installed along the main road and the nursery’s team relies exclusively on organic fertilisers and recycle the nursery’s waste. Treated wastewater provided by Dubai Municipality is used to meet the majority of the nursery’s irrigation needs and clean drinking water is only used for seed development during the first stages of plant development, said Al Khateeb. Source: Arabian Business Back to Index

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INDIA'S REAL ESTATE POTENTIAL SHINES THROUGH Sunday, Aug 18, 2019 NRIs in the UAE are always eyeing real estate assets back home, as owning property in India gives them a sense of belonging. With India’s stable government and rising economy, it’s not just the NRI investors here who see value in buying property in India, others view the Indian property market as a lucrative property investment option as well. Agnelorajesh Athaide, Chairman and MD of St Angelos VNCT Ventures, an affordable designer villas developer, believes India is currently enjoying the highest quantum of infrastructure development the nation’s ever seen. “This not only propels economic growth, but also brings about appreciation in prices of properties built on the outskirts of metro cities. This appreciation is always disproportionate to the capital invested, which everyone, including the NRIs, are interested in.” In the budget, says Navin Makhija, Managing Director, The Wadhwa Group, the government’s focus on a firm infrastructure push by announcing Rs100 trillion investments will boost the real estate sector and help in employment generation. “The government is also consistent in addressing affordable housing, be it giving infrastructure status to this segment in the previous budget to the exemption of Rs150,000 (Dh7,986) in income tax on home loans under affordable housing in this budget. This is a big move as it will benefit a broader segment of homebuyers and increase demand.” Property trends Dinesh Hegde, CEO, Thea Estate Developer in Bengaluru, says that one of the top choices is the financial hub, Mumbai, not just in terms of the value of purchase but also the number of transactions that happen. “Bengaluru and Pune are also favourites followed by north and extreme south Indian cities,” he says. Hegde notes that the most purchases are in the bracket of Rs7 million to Rs12.5 million, excluding the uber luxury segment. “An apartment is the most preferred form and buyers require facilities such as CCTV for security, a gym, pool, squash court and more.” Citing Anarock’s recent consumer survey, Shajai Jacob, CEO — GCC (Middle East), Anarock Property Consultants, says, “Nearly 50 per cent of the NRIs prefer to buy luxury properties priced above Rs8 million, while 50 per cent now wish to buy properties in the affordable and mid-segment (within Rs8 million budget). A whopping 44 per cent of NRIs responded preferring to buy 2BHKs of compact sizes.” Umesh Jaandiyal, Vice-President, International Business, Omkar Realtors & Developers Rep Office, also finds the compact housing project to be a favourite hot spot for NRIs investment because of the ever increasing rental yields owing to its strategic location closer to CBDs. “The Indian market now is an end-user-driven market and developers are offering a new proposition of compact 1- and 2-bed efficient homes, fulfilling all the parameters for investment. “The residential rental yields in major Indian cities (as per the industry report) seen are in Delhi NCR: 2.63 per cent, MMR: 3 per cent, Pune: 3.10 per cent, Chennai: 2.72 per cent, Kolkata: 2.65 per cent, Bengaluru: 3.30 per cent and Hyderabad: 3.70 per cent.” Financing options

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While many NRI investors are cash buyers, they can receive funding support from leading Indian financing institutions. “Home loan products are the same for residents and NRIs and many banks offer 85 per cent LTV on apartments and individual houses and up to 70-80 per cent on plots,” says Hegde. “Besides, many NBFCs also offer NRI home loans.” Jaandiyal says the options for buyers are bank subvention schemes, which most Indian developers offer to NRIs. “It gives less burden to them in terms of the initial down payment for projects under construction. Through the scheme the first EMI is only at the time of possession, meaning no interest on the loan for the entire period of construction.” Banks also offer construction-linked plans. “Here, the NRI bank releases payment to the developer based on construction progress and the NRI pays to the bank as per the EMI payment schedule,” he adds. “Also, there are the developer subvention schemes such as 20:80/10:90, which are payment plans asking for a minimum initial down payment against purchase of a unit in all the under-construction projects. The balance payment is made to the developer at the time of possession.” Jacob adds that buyers get home loans at both fixed and floating interest rates. A few banks are also offering fixed-cum-floating interest wherein one has to pay a fixed interest for the first few years (3-6 years), and then start paying floating interest, he explains. “NRIs usually have to pay a higher rate of interest as compared to an Indian resident. Also, the tenor for a home loan usually ranges between 5 and 20 years and in only select cases go up to 30 years for salaried professionals.” He further adds that some banks allow NRIs to club their spouse’s or sibling’s income with theirs to improve eligibility, but others may only consider the principal borrower’s income. Hence, it’s essential to have a good credit history and high credit score as many banks insist on checking the credit report in the country of residence and India, says Jacob. Source: Gulf News Back to Index

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AL QUDRA RESIDENTS WELCOME RTA PLANS FOR FLYOVER, BRIDGES AND WIDER LANES Sunday, Aug 18, 2019 Daily commuters from Al Qudra, travelling towards Umm Suqueim street and Sheikh Zayed Road can expect relief in traffic soon. The Roads and Transport Authority (RTA) here announced on Saturday that 65 per cent of construction work on the Al Qudra-Lehbab roads intersection project has been completed. What is the change? RTA said a key initiative as part of the project involves upgrading an existing junction on the Al Qudra – Jebel Ali – Lehbab road corridor into a multi-tier flyover, thus enabling free traffic movement in all directions. The project includes construction of two bridges as well as ramps to serve right, left and U-turns. The scope of the project also covers widening connecting streets, a cycling bridge in addition to lighting works, rainwater drainage systems, and utility lines. The road project will ease traffic flow on both Al Qudra road and Jebel Ali Lehbab road - a vital corridor for traffic to Jebel Ali Free Zone, JAFZA, and Abu Dhabi, bypassing downtown areas. Key corridor Lehbab road is a key traffic corridor offering an alternative link to Expo Road, JAFZA and Abu Dhabi-bound traffic and vice versa without going through downtown areas. In January, Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, ordered the renaming of the highway which was earlier known as Jebel Ali-Lehbab Road to Expo Road. Mattar Al Tayer, RTA’s director-general and chairman of the board of executive directors said the widening of Al Qudra Road is one of RTA’s strategic projects that provides a key traffic corridor starting from Jumeirah to Umm Suqeim Street, which had been improved through the construction of two bridges of three lanes in each direction. “The first extends over the Eastern Parallel Road (Al Asayel Street), and the second passes over the Western Parallel Road (First Al Khail Road),” he said. Work done so far Al Qudra Lehbab Map

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According to RTA, the agency has undertaken improvements of Al Qudra Road over several phases starting with widening the road from one to three lanes in each direction over a 12 km stretch from the Lehbab intersection to Bab Al Shams R/A. “Later on, roads improvements covered widening two bridges to three lanes in each direction and the construction of crossings for vehicles & camels", said Al Tayer. Cycling track and flow of traffic Works also included an 18-km cycling track fitted with a rest area comprising facilities and shops for bike rental and accessories, a fully equipped clinic, Cycling Gate, rest area, 10 shaded areas and bike racks,” he added. The statement added, "Widening of Al Qudra Road has provided a key passageway starting from Jumeirah to Umm Suqeim Street, which had also been improved by the construction of two bridges of three lanes in each direction. The first bridge passes over the Eastern Parallel Road (Al Asayel Street), and the second crosses over the Western Parallel Road (First Al Khail Road), enabling smooth traffic on the flyover of Al Khail Road and at the Interchange of the Arabian Ranches on the Sheikh Mohammed bin Zayed Road. It has eased the traffic to Al Qudra Road and further to Al Qudra Bridge crossing over Emirates Road up to Seih Assalam." Residents speak

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Meanwhile residents living around the Al Qudra area welcomed RTA’s road initiative. There has been a population spike in the area recently, following increased supply of new residential projects coupled with incoming rental demand owing to a drop in rents. Nshama Town Square Dubai, Damac Hills, Arabian Ranches 2, Mudon are all housed in the Al Qudra road area close to the cycling track. Residents of the area use the Al Qudra road daily to hit Umm Suqueim street, or the Hessa road from Al Barsha south. “There is a traffic clog every day towards Umm Suqueim street in the morning from 7.30am until 9.30am and in the evening towards Al Qudra from Sheikh Zayed Road, Umm Suqueim and Hessa roads from 5.30pm until 7.30pm,” said Jarryd Goodman, 34, a resident of Town Square Dubai - a development located along the Al Qudra Road. “Traffic is especially built up near Arabian Ranches 2, heading towards Umm Suqueim street which I don't use. I am really glad RTA is expanding the road network here. The authority must have done a traffic impact study to initiate this road project. [I] am sure expanding the lanes on the Al Qudra road will relieve congestion as well as allow future traffic in the area to be more well planned and accommodating,” said Goodman. Irish expat D.F, who lives in Arabian Ranches 2, said road extensions in the area would help him reach office earlier. “I can get up a bit more late as I expect the traffic clog in the morning to be reduced considerably!” The Al Qudra area resident works in Emaar Business Park and says it takes him an hour to reach work during peak hours in the morning. Source: Gulf News Back to Index

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OPEC BEARISH ON OIL MARKET, POINTS TO 2020 SURPLUS AS RIVALS PUMP MORE Thursday, Aug 16, 2019 Opec delivered a downbeat oil market outlook for the rest of 2019 on Friday as economic growth slows and highlighted challenges in 2020 as rivals pump more, building a case to keep up an Opec-led pact to curb supply. In a monthly report, the Organization of the Petroleum Exporting Countries cut its forecast for global oil demand growth in 2019 by 40,000 bpd to 1.10 million bpd and indicated the market will be in slight surplus in 2020. The bearish outlook due to slowing economies amid the US-China trade dispute and Brexit could press the case for Opec and allies including Russia to maintain a policy of cutting output to support prices. Already, a Saudi official has hinted at further steps to support the market. "While the outlook for market fundamentals seems somewhat bearish for the rest of the year, given softening economic growth, ongoing global trade issues and slowing oil demand growth, it remains critical to closely monitor the supply/demand balance and assist market stability in the months ahead," Opec said in the report. Despite the Opec-led cut, oil has tumbled from April's 2019 peak above $75 pressured by trade concerns and an economic slowdown. Opec, Russia and other producers have since January 1 implemented a deal to cut output by 1.2 million bpd. The alliance, known as Opec+, in July renewed the pact until March 2020 to avoid a build-up of inventories that could hit prices. Opec left its forecast for 2020 oil demand growth at 1.14 million bpd, up slightly from this year. But Opec added that its forecast for 2020 economic growth faced downside risk. "The risk to global economic growth remains skewed to the downside," the report said. "Especially trade-related developments will need to be thoroughly reviewed in the coming weeks with some likelihood of a further downward revision in September." Opec trimmed its global economic growth forecast to 3.1 per cent from 3.2 per cent and, for now, kept its 2020 forecast at 3.2 per cent. Rising inventories The report also said oil inventories in developed economies rose in June, suggesting a trend that could raise Opec concern over a possible oil glut. Stocks in June exceeded the five-year average - a yardstick Opec watches closely - by 67 million barrels. This is despite the supply cuts of Opec+ and additional involuntary losses in Iran and Venezuela, two Opec members which are under US sanctions. Opec deepened its cuts in July, the report showed. According to figures Opec collects from secondary sources, output from all 14 members fell by 246,000 bpd from June to 29.61 million bpd as Saudi Arabia cut supply further. Opec and its partners have been limiting supply since 2017, helping to clear a supply glut that built up in 2014- 2016 when producers pumped at will, and revive prices. The policy has been giving a sustained boost to US shale and other rival supply, and the report suggests the world will need significantly less Opec crude next year.

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The demand for Opec crude will average 29.41 million bpd next year, Opec said, down 1.3 million bpd from this year. Still, the 2020 forecast was raised 140,000 bpd from last month's forecast.

The report suggests there will be a 2020 supply surplus of 200,000 bpd if Opec keeps pumping at July's rate and other things remain equal. Last month's report had implied a larger surplus of over 500,000 bpd. Source: Khaleej Times Back to Index

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UAE HAS 54,438 HOTEL ROOMS IN PIPELINE Sunday, Aug 18, 2019 The UAE's hospitality sector is growing at a remarkable pace compared to other GCC countries with a record 54,438 rooms under construction in the run up to Expo 2020. The latest STR hotel pipeline data shows that the UAE leads in the Middle East and Africa region with the most number of new hotels and rooms under construction. The new rooms represent 31.8 per cent of the UAE hospitality sector's existing room inventory. By 2022, it is estimated that the UAE's hospitality market is expected to reach $7.6 billion, growing at a five-year CAGR of 8.5 per cent between 2017 and 2022. In particular, hotel room supply in Dubai, the fourth most visited city in the world, is expected to reach 132,000 in 2019, with the emirate aiming to complete 160,000 hotel rooms by October 2020 - in time to welcome 25 million visitors for Expo 2020. With 20 million annual visitors expected to visit Dubai next year, plus an additional five million between October 2020 and April 2021 - 70 per cent of which will come from outside the UAE - the overall hospitality supply in the emirate is expected to increase exponentially. In the Middle East and Africa region, four other countries showed more than 4,000 rooms under construction. They include Saudi Arabia with 41,207 rooms, accounting for 40.5 per cent of existing inventory. While Qatar has 14,518 rooms under construction, accounting for 53.5 per cent of the existing supply, Oman has 4,589 rooms (24.1 per cent), and Egypt has 4,100 rooms (2.4 per cent) in the pipeline. The July 2019 hotel pipeline data from STR showed a total of 427 projects accounting for 123,742 rooms in construction in the Middle East and 138 projects and 25,986 rooms in construction in Africa. The Middle East total represented a 2.1 per cent year-over-year increase in the number of rooms in the final phase of the development pipeline. The region reported an additional 30,240 rooms in the final planning stage and 45,948 rooms in planning. The Africa room construction total was down 1.8 per cent year over year. Africa also showed 17,485 rooms in final planning and 23,954 rooms in planning. The STR data on upcoming hotel rooms come at a time when hotels in the Middle East and North Africa recorded a 6.4 per cent year-on-year decline in profit per room in June. According to the latest data tracking hotels from HotStat, this was because as hotels in the region missed their usual demand bump as the month of Ramadan mostly fell in May. Despite a 10.2-percentage-point increase in room occupancy in the month to 65.0 per cent, it was at the expense of achieved average room rate, which plummeted by 18 per cent year on year to $149.12. Further to the year-to-date peak recorded in May at $183.65, achieved average room rate fell back by almost $35 this month. This was led by significant rate declines across all key segments, including Corporate (down 8.8 per cent), Individual Leisure (down 20.2 per cent) and Group Leisure (down 32.8 per cent).

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The 2.7 per cent decline in RevPAR was tempered by an increase in ancillary revenues, which included a 0.2 per cent uplift in food and beverage revenue and a 17.8 per cent jump in leisure revenue.

"As a result, TRevPAR at hotels in Mena fell by 1.4 per cent in June to $171.34. And despite their best efforts to manage costs, illustrated by the 0.1 per cent saving in payroll to $56.83 per available room, profit levels at Mena hotels fell to $47.25 in the month. This was the lowest profit per room recorded in 2019 and 57.1 per cent below the year-to-date," HotStat report said. Source: Khaleej Times Back to Index

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UAE BANKS' EXPOSURE TO REALTY DECLINES Sunday, Aug 18, 2019 Growth in the UAE banking sector's loan exposure to the real estate sector nearly halved to 8.5 per cent last year, compared to 18.1 per cent in the previous year, due to a persistent decline in property prices as well as a reduction in the number of project launches. According to the UAE Central Bank's Financial Stability Report 2018, the outstanding balance of real estate loans amounted to Dh379 billion at the end of 2018, which was slightly above 20 per cent of total loans. Bank lending to the real estate sector (including both residential and commercial real estate) grew at 18.1 per cent in 2017 as against 10.3 per cent in 2016. "The asset quality of the commercial and residential real estate loans remained stable during 2018, while it deteriorated for the construction sector," the report said. Kamal Al Ansari, head of debt advisory services at JLL Mena, said that the UAE bank loan exposure to the real estate sector grew at a more moderate pace during 2018 due to fewer new real estate projects being launched in the country. Developers launched 25 per cent fewer projects in 2018 than in 2017. "In addition, investor sentiment is currently low due to a sluggish real estate market, with investors putting their decision to purchase on hold, expecting the market to drop further. This, in turn, is reducing the number of investors looking for loans, eventually impacting banks' exposure to real estate," Al Ansari added. Late last year, the Central Bank announced its decision to remove the 20 per cent cap on real estate loans, in line with the UAE government's vision to remove certain road-blocks to stimulate the overall economic growth. "We see this as an opportunity as removing the cap will encourage banks to lend seamlessly and help in overcoming challenges presented by the current real estate market. It will also enable lenders to deploy additional capital to new and existing customers," Al Ansari added. Dr. Adnan Chilwan, CEO of Dubai Islamic Bank (DIB), ruled out pressure on the Shariah-compliant bank's real estate portfolio during a webcast last week. "Over the last five years or so, we have managed our real estate book very well. We are not heavily focused on [real estate] so the book has reduced to 19 per cent at the end of last year. We are close to 20 per cent in the first six months of 2019 and each of these loans in the real estate portfolio are performing well... Whatever happened about softening of real estate over the last 24 months, we have not seen any impact on our books. But in certain cases the cash needs to be reassessed and make sure that they match repayment capacity," Chilwan said. He said DIB's real estate portfolio is pretty healthy despite certain softening. "In a nutshell, we are not seeing any early signs of warning as far as our real estate portfolio is concerned." Firas Al Msaddi, CEO and executive chairman of Fäm Properties, said that the vast majority of people feel that if the banks are cautious, then they have to be more cautious. "It definitely creates a level of uncertainty in the market, in the sense that the banks do their homework very well and if banks are reducing exposure that means we have to think twice now before entering the market. Of course, as a result of impacting the purchase power, the demand, it always results in a slower trend of market transactions," Al Msaddi said.

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"On the good side, we cannot undermine the fact that it's good that banks are cautious and it is good that the banks are not overly exposed to the real estate. Because at the end of the day, when they have over exposure on their balance sheet for real estate, then if anything happens, if there is any slowdown that will magnify the problem in the market," he added. According to Central Bank data, the growth of residential mortgage loans remained strong at 9.2 per cent during the year. Among other sectors, retail lending remained stagnant during 2018 declining by 0.1 per cent, while personal loans declined 1.0 per cent, credit card loans fell 0.6 per cent and car loans plunged 13.4 per cent. The wholesale corporate lending portfolio combines bank lending to the private corporate sector, government related corporate entities (GREs), small and medium enterprises (SMEs), and high-net-worth individuals (HNIs). Bank lending to private corporate sector was the most dynamic within wholesale lending throughout 2018 growing by 10.2 per cent. Conversely, lending to the GREs and SMEs contracted 3.2 per cent and 2.6 per cent, respectively. Source: Khaleej Times Back to Index

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

Arabia not only provides a deep understanding of the local Our valuations are carried out in accordance with the markets but also enables us to undertake large Royal Institution of Chartered Surveyors (RICS) and instructions where we can quickly apply resources to meet International Valuation Standards (IVS) and are clients requirements. undertaken by appropriately qualified valuers with Our breadth of experience across all the main property extensive local experience. sectors is underpinned by our sales, leasing and investment teams transacting in the market and a wealth The Professional Services Asteco conducts throughout of research that supports our decision-making. the region include:

• Consultancy and Advisory Services John Allen BSc MRICS • Market Research

Executive Director, Valuation & Advisory • Valuation Services +971 4 403 7777 [email protected] SALES Asteco has established a large regional property sales division with representatives based in UAE, Saudi Jenny Weidling BA (Hons) Arabia, Qatar and Jordan. Manager, Research & Advisory 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.

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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.