NEWS BRIEF 26 SUN DAY 26 June 2016

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

REAL ESTATE NEWS

UAE

DUBAI AND ABU DHABI RENTS STILL RISING DESPITE FALL IN DEMAND, REPORT SAYS DUBAI DUBAI WINS BID TO HOST WORLD REAL ESTATE CONGRESS IN 2018 DUBAI’S PREMIUM VILLAS FACE THE BRUNT OF CORRECTION LAND DEPARTMENT OFFERS A MASTERS IN REAL ESTATE DUBAI REALTY EXPERT SEES 8% RENT DECLINE TIME FOR A FRESH REALITY CHECK ON DUBAI PROPERTY MOHAMMAD BIN RASHID LAUNCHES DUBAI INDUSTRIAL STRATEGY 'ULTRA-PRIME RESIDENTIAL ADDRESS' IN DUBAI: VILLAS SELLING FOR DH10M DAMAC AWARDS CONTRACTS WORTH D3BN FOR DUBAI PROJECTS SALES OF PRIME VILLAS ON DUBAI’S PALM JUMEIRAH FALL 44 PER CENT GFH LAUNCHES SPECIALIST PROPERTY DIVISION THREE NEW FREEHOLD PLOTS OPEN IN DUBAI JUMEIRAH GOLF ESTATES AWARDS MID-MARKET HOMES CONTRACT TO DUBAI-BASED SUMER CONTRACTING COMPANY LEVER STEPS DOWN FROM DUBAI-BASED AL NABOODAH CONSTRUCTION AFTER 30 YEARS FIRST PHASE OF DUBAI’S DELAYED LIVING LEGENDS PROJECT HANDED OVER STEADY DEMAND KEEPS DUBAI’S PROPERTY MARKET BUOYANT ABU DHABI FULL SAIL AHEAD FOR SIR BANI YAS ISLAND ECO-TOURISM PLANS

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

REAL ESTATE NEWS GCC | INTERNATIONAL GULF TOURISTS AND STAYCATIONERS TO BOOST HOTELS OVER EID WEEKEND GULF VISITORS COME TO DUBAI IN DROVES DURING RAMADAN WHY A SECOND HOME IN THE SEYCHELLES IS AN ENTICING INVESTMENT SIX FLAGS ENTERTAINMENT PLANS TO OPEN SAUDI ARABIA THEME PARKS QUARTER OF GULF INVESTORS WON’T USE PROPERTIES ABROAD

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

STEADY DEMAND KEEPS DUBAI’S

PROPERTY MARKET BUOYANT

Saturday, 18 June, 2016

Dubai’s prime residential market is expected to remain buoyant until 2020, according to Core, UAE associate of Savills.

The “H1 Dubai Investment Outlook” report reveals the prime residential market will benefit from limited availability in the few established areas and the steady demand, aided by the growing pool of regional and global investors looking to re-enter the bottoming market.

Company CEO, David Godchaux, says: “The relative resilience of prices in most of the established ultra-prime areas is an interesting aspect coming to the fore, underpinned by limited new supply and continued demand from UHNWI investors wanting to own ultra-prime properties in Dubai’s locations such as villas in Palm Jumeirah and Emirates Hills, along with a few luxury apartments in the Downtown and Marina districts and the new Jumeirah freehold developments like City Walk.

“The trend is stemmed by the long-term investment horizons and status factors of a majority of owners of prime residential real estate in Dubai – contrasting with the many investors-speculators of pre-2008.”

A number of new residential projects, driven by the “affordable housing” theme have come to the market in the last few quarters, with attractive yields appealing to investors and real estate funds looking to diversify their real estate portfolio.

Godchaux adds: “While we do not believe strongly in affordable housing as a compelling investment in the long- term in Dubai in comparison to other segments of the market, we still believe there are good opportunities to seize given that most potential customers in this segment are still unable to shift to ownership due to current mortgage restrictions keeping the yields at artificially high levels.” Source: Emirates 24/7 Back to Index

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

FIRST PHASE OF DUBAI’S DELAYED LIVING

LEGENDS PROJECT HANDED OVER

Sunday, June 19, 2016

Tanmiyat Group has said that it has handed over keys to 184 villas and one tower block at its delayed Living Legends project in Dubailand six years later than originally planned.

The Saudi Arabian property developer announced today that it had handed over the first phase of the 15 million square foot mega project comprising 500 villas and 12 residential towers after it had finally been connected to Dubai’s electricity and water grid.

Tanmiyat launched the Living Legends project in the Al Barari area of the city in 2006, aiming to finish work between 2008 and 2010. However, the project was halted during the financial crisis and only restarted in 2012.

In September, the developer said that it would deliver all 500 of the villas at the project in Dubailand by the second quarter of the year after completing 172 villas last year.

The project is also slated to include a nine-hole golf course, schools, clinics, a shopping mall and a five-star hotel.

“The journey to this point has come with many challenges as we and the rest of the real estate industry faced the property crash and its aftermath," said Mohammed Bin Odah, chief executive of Tanmiyat. “Tanmiyat is delighted to receive confirmation from Dewa that phase one of Living Legends is fully powered up and ready for investors to receive the keys to their dream homes,"

He said that 88 per cent of the project had been sold and a second phase of development had been scheduled for handover in the last quarter of 2016.

He said that overall construction would be completed by the end of 2017. Source: The National Back to Index

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

LEVER STEPS DOWN FROM DUBAI-BASED AL NABOODAH CONSTRUCTION AFTER 30

YEARS

Monday, June 20, 2016

Al Naboodah Construction Group has announced that its chief executive, Steve Lever, is set to retire next month after spending 30 years at the company.

Mr Lever, who oversaw the growth of Al Naboodah’s construction operation into a business with more than 13,000 employees, will be replaced as chief executive by Colin Timmons. Mr Timmons joined Dubai-based Al Naboodah Construction Group as chief operating officer in March this year after a five-year spell as general manager of Abu Dhabi-based Al Fara’a Group’s construction arm.

Al Naboodah Construction said that Mr Lever will remain with the company for a period to ensure a successful handover, and will continue in an advisory capacity next year, as well as overseeing work in Qatar and managing some key clients.

Paul O’Flaherty, the chief executive of parent company Al Naboodah Group Enterprises, said: “Under Steve’s leadership, the group has positioned itself as one of the most recognised and trusted construction firms in the region."

He added that Mr Timmons had “been at the forefront of the global construction industry for many years".

“His leadership and vision will see the group continue to achieve the strategy laid out by Steve."

Meanwhile, Dubai-based fit-out contactor Depa has announced the appointment of Ibrahim Belselah as group chairman, following the recent departure of former chairman Mohamed Al Fahim, who also recently stepped down from the board of contractor Arabtec, which owns a 24 per cent stake in Depa.

Mr Belselah, who joined the company’s board last month, had previously been executive chairman of Damas International as well as providing counsel to investment banking firm Rothschild Group and to commodities trader Trafigura.

Mr Belselah said: “Depa is a company with a proud history and a promising future, and I am delighted to be appointed as its chairman."

Depa Group, which is listed on Nasdaq Dubai, reported a Dh266 million loss for 2015 as turnover dropped by 15 per cent to Dh1.64 billion. It blamed a “challenging year", but said it had made progress in cutting costs and strengthening its underlying business.

In April, Depa announced the appointment of former Leighton Contractors boss Hamish Tyrwhitt as its new chief executive.

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

Source: The National

Back to Index

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

JUMEIRAH GOLF ESTATES AWARDS MID- MARKET HOMES CONTRACT TO DUBAI-

BASED SUMER CONTRACTING COMPANY

Monday, June 20, 2016

Jumeirah Golf Estates (JGE) has awarded a contract to build 728 mid-market homes to Dubai’s Sumer Contracting Company as part of its strategy to build more “affordable" properties at its DP World Tour Championship golf course development.

The developer, which has been owned by the Dubai government since the global financial crisis, announced that Sumer would build 674 apartments and 54 town houses at its proposed Alandalus neighbourhood.

JGE said that apartments at the new development would start from Dh 597,000 – just a fraction of the price fetched by the large luxury villas that huddle around the 1,100 hectare golfing complex.

It said that construction of the new development, which was first marketed in May 2015, was due to start this month and completion was scheduled for 2018. It did not say how many of the homes it had sold over the past year.

JGE is the latest of a number of Dubai developers to target “affordable" housing projects in the hope of attracting buyers. Developers building apartments costing less than Dh1 million include Danube and Nshama.

According to property broker JLL, the middle income housing market in Dubai for properties priced at about Dh790,000 is going largely untapped, while most developers in Dubai have historically catered towards the top end of the market.

“The appointment of Sumer Contracting Company is a major milestone in the construction of Alandalus and a pivotal development in Jumeirah Golf Estates’ growth story," said Yousuf Kazim, the chief executive of Jumeirah Golf Estates.

“Having previously constructed a range of luxury projects, Sumer Contracting Company was a natural choice for this role, as we create luxury living choices with affordable prices for a captive audience of buyers."

JGE has completed two of the planned four golf courses at the megaproject and started handing over the first of a planned 1,050 villas at Jumeirah Golf Estates in 2013.

The Dubai developer Nakheel, which unveiled the project in 2005, had originally promised to complete all four courses by the first quarter of 2007.

After two years of falling prices, property brokers in Dubai are divided over whether the Dubai housing market has yet reached its bottom. Source: The National Back to Index

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

QUARTER OF GULF INVESTORS WON’T USE PROPERTIES ABROAD

Monday, June 20, 2016

A quarter of all Gulf investors buying property overseas are targeting “buy-to-leave" homes that they don’t intend to live in or let out, brokers have said.

According to data compiled by property brokers Cluttons and polling company YouGov, 26 per cent of 127 high- net-worth investors from the Middle East looking to buy property over the coming year said they plan to neither use it as a main property nor lease it out.

Instead, investors said they planned to use their new property as a “second residence", many of which are unlikely to be lived in at all.

One in four respondents said they were purely motivated by capital gains and were hoping to cash in on London house prices that have skyrocketed by 70 per cent over the past seven years.

“Our research confirms the sentiments of many that London is perceived to be lined with gold bricks, with the residential returns outperforming mediocre stock and bond markets in recent years," said Faisal Durrani, the head of research at Cluttons.

“This lock-up and leave attitude has been a political hot topic and often cited as a main driver of rising values and diminishing affordable stock."

A third of respondents said that their local economies were worsening or destabilising, which has fuelled a desire to look for investment opportunities abroad.

More than half of those surveyed (55 per cent) said that they already had an international property portfolio and 17 per cent named London as their preferred choice from 196 global destinations.

Moreover, 63 per cent said that they were likely to invest in their preferred location this year.

According to Cluttons, house prices in prime central London increased by 4.6 per cent in the 12 months to the end of the first quarter this year, while residential yields averaged 3.7 per cent.

The broker predicts cumulative capital growth throughout the next five years will reach 19.1 per cent. Source: The National Back to Index

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

THREE NEW FREEHOLD PLOTS OPEN IN DUBAI

Monday, June 20, 2016

Foreign developers and investors will now be able to purchase key sites close to Al Maktoum Airport after Dubai’s ruler announced he would add three new land plots to the freehold area around it.

Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the UAE and Ruler of Dubai, announced yesterday said that the three huge land packages in the area known as Dubai South would be available for non-UAE citizens to buy with absolute ownership and without a time limit.

Under the new decision, which covers plots numbered 205, 206 and 207, landowners will also be able to lease lands and properties for periods of up to 99 years.

The Dubai Government said that the move was part of its plans to “support Dubai Aviation City’s objectives to cater to the continuous growth of the aviation sector in Dubai, and to further cement its position as an international hub for aviation and logistics services".

It said that the decision was effective from the date of issuance and would be published in the Official Gazette.

Dubai South, formerly known as Dubai World Central, was launched in 2006 as the world’s first “aerotropolis", with Al Maktoum International at its core.

The airport is scheduled to be expanded from a current freight capacity of 1 million tonnes of cargo per year to 16 million tonnes and could handle 220 million passengers a year when it takes over as the city’s main airport.

Last year, planners revealed that the rebranded Dubai South would include a Dh25 billion middle-income residential project, which would be laid out as a cluster of villages. Source: The National Back to Index

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

SIX FLAGS ENTERTAINMENT PLANS TO OPEN SAUDI ARABIA THEME PARKS

Monday, June 20, 2016

US theme park company Six Flags Entertainment plans to expand to Saudi Arabia, its chief financial officer told Saudi-owned Arabiya TV on Monday, bringing roller coasters and bumper cars to the ultra-conservative kingdom.

“We’re very honoured to be provided with an opportunity to enter into a partnership to bring Six Flags to the kingdom ... Our parks can provide the entertainment to which Saudis aspire," chief financial officer John Duffy said. His comments were dubbed into Arabic.

Duffy did not elaborate on the terms of the partnership.

His announcement followed a meeting between company CEO James Reid-Anderson and deputy crown prince Mohammed bin Salman, who is visiting the United States to promote a reform plan to wean the kingdom away from oil revenue.

The powerful royal, who also heads the country’s economic council, hopes the so-called “Vision 2030" initiative will jumpstart the private sector, provide jobs for a growing population and improve Saudis’ cloistered lifestyles.

“We consider culture and entertainment indispensable to our quality of life. We are well aware that the cultural and entertainment opportunities currently available do not reflect the rising aspirations of our citizens and residents," the 2030 plan said in April.

Prince Salman’s reform plans flirt with social change in a country where women are barred from driving, cinemas are banned and women’s sports are discouraged as promoting sin.

It is unclear whether the theme park company will tailor its rides, which include water slides, to the social codes of a country where public spaces are gender segregated.

Six Flags operates approximately 20 theme and water parks in North America and signed an agreement with a private Ho Chi Minh City based company in March to open two parks in Vietnam.

Both Abu Dhabi and Dubai are encouraging the development of theme parks to help boost foreign tourist arrivals as oil prices slump, causing an economic slowdown in the region. Source: The National Back to Index

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

FULL SAIL AHEAD FOR SIR BANI YAS ISLAND ECO-TOURISM PLANS

Monday, June 20, 2016

Sir Bani Yas Island, the Arabian Gulf’s only dedicated cruise beach stopover, is expected to shape up as the region’s first ecotourism destination.

The island, located offshore of Al Gharbia, will receive 65,000 passengers from 39 calls during the 2016-17 season, which runs from October to May, Abu Dhabi Ports said on Monday.

A beachfront is under development on the island, which has three luxury resorts. Once ready, the beach will feature wooden boardwalks, barbecue facilities, hammocks and cabanas besides dining and water sports facilities.

Sir Bani Yas, which is home to a nature reserve, started receiving cruise passengers last year. In November, the 114-passenger capacity Island Sky, owned by British tour operator Noble Caledonia, docked at the island for a day-long stay. Seaborne Sojourn, a 450-passenger capacity vessel owned by Florida-based cruise ship operator Carnival Corporation, made a daytime call a few days later.

Given the infrastructure under development, the island has a potential to attract more cruise stopovers, said Rashid Aboobacker, the associate director at TRI Consulting, a leisure consultancy in Dubai.

“Considering the variety of wildlife available on the island and the conservation activities undertaken there, it is a unique destination and is likely to attract continued interest from both local and foreign tourists," he said.

During the 2016-17 season, cruise liners are expected to deliver 250,000 passengers from 151 calls to the emirate, according to Abu Dhabi Ports.

Last season, Abu Dhabi reported an increase of 16 per cent in passenger numbers from the previous season to reach 231,660 tourists, and a 20 per cent increase in vessel calls to 113, according to Abu Dhabi Ports.

“This impressive double-digit growth in the face of economic headwinds is a remarkable achievement," said Mohamed Juma Al Shamisi, the chief executive of Abu Dhabi Ports. “Ensuring that Abu Dhabi remains a preferred port of call for international cruise lines reflects our commitment to playing our part in meeting our wise leadership’s vision of diversifying the economy and positioning the emirate as a sought-after tourism destination."

The emirate will ramp up marketing efforts to position itself as an archaeological, adventure and shopping destination, said Mohamed Al Mubarak, the chairman of the Abu Dhabi Tourism and Culture Authority.

Sir Bani Yas Island is a key element in that strategy, which will also promote theme parks, museums and shopping options. Source: The National Back to Index

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

GFH LAUNCHES SPECIALIST PROPERTY DIVISION

Tuesday, June 21, 2016

GFH Financial Group confirmed on Tuesday that it is planning to launch a specialist real estate division to develop a number of its projects in Dubai and its home base of Bahrain.

The Bahrain-listed investment group said that the division, GFH Real Estate, would have initial assets of US$40 million and would manage projects in Bahrain and Dubai that the company had previously invested in with a combined value of $300m.

Projects being brought forward include the Harbour Row and Harbour North schemes in Bahrain and one in Dubai, Dubai California Village.

The company started work on the $150m Harbour Row project in December and said that it intends to launch the remaining phases of the residential-led project in Bahrain Financial Harbour before the end of this year. These are a series of low-rise apartment blocks with commercial units around a promenade at the ground-floor level.

The Dubai-listed company also announced in April this year that it would restart work at its $650m Villamar project in Bahrain Financial Harbour, which includes three twisting towers, each between 52 and 54 storeys. This project was launched in 2007 before the global financial crisis.

Earlier this month, it also bought a portfolio of industrial property buildings in the United States for $65m. The portfolio included 30 buildings spread across seven Midwest states.

Conditions in Bahrain’s property market have shown signs of improving in recent months, with rents remaining stable and development cautiously increasing after several years of inactivity.

A report earlier this month by property consultants CBRE said that development activity had been taking place across Bahrain in recent months, as the kingdom looked to the non-oil sector to drive growth.

New schemes have included UAE-based Eagle Hills’ Marassi Al Bahrain project at Diyar Al Muharraq and Bin Faqeeh Group’s Layan project, which is a residential scheme with its own water park at Durrat Marina.

“Growth has been dominated by construction, private education, health care and tourism, and while real estate transactions have dropped by 6 per cent quarter-on-quarter, development activity and project planning has gained pace, particularly in the residential, retail and hospitality sub-sectors," said James Lynn, a research director at CBRE Bahrain. Source: The National Back to Index

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

SALES OF PRIME VILLAS ON DUBAI’S PALM JUMEIRAH FALL 44 PER CENT

Tuesday, June 21, 2016

The number of the most expensive villas sold on Dubai’s prestigious Palm Jumeirah fell by nearly half in the first six months of this year compared with a year earlier as sellers shied away from marketing property in a falling market.

According to the property broker Core, an associate of Savills, transaction numbers for villas worth more than Dh10 million fell by 44 per cent compared with the same period a year earlier.

It said that although super prime villas on the man-made island were the worst affected, transaction activity levels for all Palm Jumeirah villas fell by about 25 per cent over the period.

Transaction levels were also down by 25 per cent in Dubai Marina and by 19 per cent in Downtown Dubai for apartments worth more than Dh10m, while transactions of apartments worth more than Dh4m fell by 43 per cent in Dubai Marina and 36 per cent in Downtown.

Despite the falling transaction levels, Core reported that sale prices per square foot for villas on the Palm remained relatively steady, down just 4 per cent over the period. Rents fell by 7 per cent over the period.

“With a total stock of approximately 1,700 villas, an estimated 150 to 200 villas are currently available for sale on Palm Jumeirah. More units are anticipated to be held by investors as many are not pressed financially to sell in this bottoming market, while a few others look towards commanding premiums by refurbishing existing units and attracting buyers who are seeking contemporary products," said David Godchaux, Core’s chief executive.

“A strong recovery in prices is not anticipated in the near term as we expect this underlying stock to keep the sales prices static even if the demand revives in the coming quarters."

Overall, the report reveals prime residential prices in Dubai are 60 per cent below prime New York, 75 per cent below prime London and 85 per cent below prime Hong Kong.

Core, which uses its own data as well as that of Reidin, compared data from the six months to June 19 compared with the first six months of last year. Source: The National Back to Index

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

DUBA I AND ABU DHABI RENTS STILL RISING DESPITE FALL IN DEMAND, REPORT SAYS

Wednesday, June 22, 2016

Asking rents in Abu Dhabi and Dubai are rising despite a fall in demand caused by falls in the global oil price a new report claims.

According to the online property listings portal bayut.com, which analyses property listings, asking rents in Dubai rose 1.57 per cent in May compared with the previous month and by 0.73 per cent in Abu Dhabi.

In Dubai it found that average rents for studio apartments went up 2 per cent to Dh57,000 in May while rents for one-bedroom apartments increased 1 per cent to Dh95,000. Average rents for two-bedroom flats remained stable at Dh149,000 and for three-bedroom apartments they rose 1 per cent to Dh206,000.

In Abu Dhabi bayut.com found that average asking rents for studio apartments stood at Dh63,000 a year while rents for one-bedroom flats fell 2 per cent to Dh97,000. Two-bedroom apartments continued to fetch an average rent of Dh139,000 and rents for three and four bedroom apartments stood at Dh184,000 and Dh254,000 respectively.

The findings contradict a number of other recent reports which said that rents in the two cities are currently falling as a result of job losses in the oil and gas and construction industries and an increase in the amount of new stock coming on to the market in Dubai.

Earlier this month Dubai-based consultancy Phidar said that rent declines in Dubai were getting steeper with average rents slipping 1.3 per cent in May, compared with a compound average drop of just 0.3 per cent since May 2014.

Last month Asteco reported that apartment rents in Abu Dhabi fell 2 per cent quarter on quarter with the most pronounced declines seen on Reem Island.

Both Phidar and Asteco base their findings on actual rents paid rather than asking rents. Source: The National Back to Index

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

WHY A SECOND HOME IN THE SEYCHELLES IS AN ENTICING INVESTMENT

Thursday, June 23, 2016

When a marketing team from South Africa visited La Digue in the Seychelles in 2006, they happened upon a German artist on the beach. They got chatting and asked him how he would best represent Eden Island, an upcoming destination promising a luxurious second home on one of the world's most vibrant islands. The artist said he'd think about it and went on his way. The next morning, an executive from the team found a painting deposited outside his hotel room door - it was of a parrotfish, a Seychellois symbol, commonly found but uncommonly beautiful. Thus Eden Island got its rainbow-hued mascot.

The Seychelles's 116th island is replete with such interesting titbits. For instance, it is located on what used to be a coral reef. In 1999, when the coral began to die due to the El Niño effect, the government reclaimed the land and decided to approach investors to develop a man-made island that could offer the tiny African country's many long-term visitors a place to call home.

Ten years later, and thanks to the efforts of a marine-biology division employed by Eden Island's South African and Austrian developers, the coral began to show signs of recovery. "We invested in relocating some coral a few years ago, and that amazing coral has flourished and regenerated naturally," says Peter Smith, the sales and marketing director of Eden Island Development Company. "As developers, we are guests in the beautiful Seychelles, as are our foreign owners. It is critical that, where we can, we give something back."

Smith and team display a seemingly genuine concern for the economic and environmental health of the unspoilt Seychelles Islands. Not only is Eden Island responsible for creating 700 jobs within the local community, but it also represented 40 per cent of the country's foreign investment in 2014 and 4 per cent of its GDP.

The draw of owning a second or investment home here is evident from the moment you pass over the bridge leading to the private island. The marina is crowded with superyachts - in the week I visit, one of these bears the UAE flag. Within, as you drive past Eden Plaza and Eden Bleu, the on-site boutique mall and business hotel, the island seems to close in around you. It's enormous, yet feels satisfyingly exclusive. Cars are swapped for electrically powered vehicles, which are like golf buggies - all owners get their own personalised buggies to travel to and from their homes, and can ride these over to one of Eden Island's four beaches, to the community centre or to the pier-facing restaurants, bars and supermarket.

Once I am let into the main accommodation arena by security - residents get an access card to pass through the various checkpoints - a warren of lanes stretches out before me. It's all narrow paths and lush greenery interspersed with views of the postcard blue ocean. The cutesy-sounding "street" names, Cardamom Road, Zarine Avenue, Ambrosine, Jacaranda Lane, add to the sense of island exotica.

The 138-acre Eden Island is made up of 570 freehold homes in three formats - apartments (one to three bedrooms), maisons (three or four bedrooms) and villas (up to six bedrooms). Of these, 500 have been sold, while the last 20 are still under development. The 50 homes currently on the market are being offered up for between Dh1.67 million and Dh11.38 million, depending on their format, finishing and furnishings. From an airy one-

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

bedroom apartment and three-bedroom duplex maison to a six-bedroom villa with an indoor pool, there's choice enough for all manner of second-home makers.

The exterior of each plot employs a common theme - one that adheres to the natural wood features, ¬ wrap- around verandas and pastel colours found in Creole architecture, which is inspired by the Seychelles's African, Arabic and French heritage. Folding doors with floor-to-ceiling glass let in plenty of natural light in the bigger homes, while the apartments have multiple high windows along each wall. All the maisons are equipped with plunge pools and green patches, while the villas boast bigger pools, expansive lawns and outdoor cabanas. Three community swimming pools and a health centre offering a personal trainer, tennis lessons, and yoga and spinning classes are open to all residents. The private beaches - also manned around the clock - offer snorkelling and fishing opportunities, as well as diving lessons.

"The layout of the island and all the homes, with their generous terrace balconies, caters to the need to be more outside than indoors - a typically Seychellois way of life," says Smith. The 40 acres of private waterways that are part of the island are divided among the owners, and each home comes with its own mooring for private or hired yachts.

While the facade of each plot is unchangeable, and each centrally air-conditioned home comes equipped with Miele kitchen appliances, buyers can custom-select the interiors. "Residents can choose from six finishes - sand, shell, rock, coral, granite or pearl - which will be evident in all elements, from the floor, wall and bathroom tiles to the countertops, wardrobe joinery finish and even the wall paint," says Evon Smuts, director of Source Interior Brand and Architecture, the interior-design architects for Eden Island.

The 6,500-square-foot villa where I spend my stay features pearlescent walls and floors, with a gleaming banister that leads up to the four newly minted bedrooms, complete with walk-in wardrobes and shaded verandas. Behind the open kitchen is a fully functional yet hidden "dirty" kitchen, ideal to stow used dishes when guests come around. The pool starts from the living room and descends through an underwater flight of stairs to the garden outside. Another set of steps leads straight down to the ocean.

While the Eden Island decor team has furnished this villa, many residents prefer to buy an unfurnished house and then do it up with the help of the on-site interior decorator - or to fly in their own experts. A good option is to choose a partially furnished plot, so you can take advantage of the stylish yet weatherproof outdoor furniture, supplied by the innovative German brand Dedon, which is ideal for the tropical temperatures of the Seychelles. Fabrics, artwork and various objets d'art can also be made to order in four colour themes: forest, aqua, driftwood and sunset.

As you shuttle about in your buggy, it's not uncommon to hear greetings of "heita", "bonjour" or "salaam" as other residents cheerily whizz past. The 500 sold plots on Eden Island are home to 40 nationalities, including South Africans, French, Italians and Britons, while Emiratis currently own 7 per cent of the units, which make up 13 per cent of the property's monetary value.

"What drew us to Eden Island was its truly superb location, so close to Dubai and Abu Dhabi, with regular daily flights and visa on arrival," says Dubai-based Kez Taylor, who owns a villa, maison and apartment on Eden Island. "This is a great development located between the airport and Victoria, and is close to other islands such as Praslin and La Digue. We love the sense of community living. It is the ideal home away from home."

A cleaning service, satellite television, Wi-Fi access and concierge desk are some of the other amenities offered by this residential marina development. Plus, the Seychelles is only a four-hour flight from the UAE, and the airport authorities offer a VIP service that takes you straight from the airplane to a private waiting lounge - even while members of staff organise your visa, luggage and any duty-free shopping requests you might have - and then straight to your slice of beach paradise, located a mere 10 minutes from Mahé airport.

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

And if that were not reason enough to temporarily relocate to Eden Island at every possible opportunity, a second home here comes with a host of other benefits. "The Eden Island units have proved to be a good investment from both a capital appreciation and rental-return aspect," says Taylor. Resale prices, for instance, are displaying an average compounded growth of 8 per cent per annum. So a four-bedroom villa that sold in 2007 for Dh5.6 million is currently on the market for Dh9.9 million. The rental pool - short-term and long-term - is another lucrative source of income for homeowners. "There is high demand from tenants on Eden Island, and owners can feel comfortable giving their homes out knowing that there is a daily housekeeping and long-term maintenance service in place," says Justin Arenhold, head of rental.

Depending on the season, overnight rates can go up to Dh2,800 for an apartment, Dh4,095 for a maison and Dh7,160 for a villa. Buyers also qualify for a five-year residency in the Seychelles for up to six members per family. "Land is a finite resource in the Seychelles, so we expect the last 70 homes to be ready and sold by the end of next year," predicts Smith.

An island getaway is often labelled the "ultimate luxury". Coming home to a property as exquisitely designed and cleverly managed as Eden Islandlends credence to that promise. Source: The National Back to Index

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

GULF VISITORS COME TO DUBAI IN DROVES DURING RAMADAN

Saturday, June 25, 2016

One million international tourists, the majority from the Arabian Gulf, are expected to visit Dubai during Ramadan, with retailers forecasting sales to pick up in the run-up to Eid Al Fitr.

During the first four months of this year, around 1.3 million tourists visited Dubai, with 587,000 people coming from Saudi Arabia, up by 13 per cent, and 428,000 visitors from Oman, up by 30 per cent, according to Dubai Tourism.

“We have seen positive forward bookings," said Issam Kazim, the chief executive of Dubai Corporation of Tourism and Commerce Marketing.

Retailers are also expecting a growth in sales before Eid, despite concerns of Brexit hitting the retail spending of UK tourists. The UK was Dubai’s third-largest source market after India and Saudi Arabia last year. Nearly 1.2 million visitors from the UK came to Dubai, up by 11 per cent over 2014.

“If the pound continues to fall, which is not guaranteed, it could dampen British tourism to overseas destinations including to the UAE," said Tim Fox, the chief economist and head of research at Emirates NBD.

“But even though the pound is likely to be weaker, it may not be by as much as many think."

Shopping promotions from the Dubai Shopping Malls Group and deals from retailers are expected to help keep the shops busy.

Sales of gold jewellery, prices of which went up after the Brexit referendum vote, are also expected to pick up.

“The market experiences positive sales, especially during the last 10 days of Ramadan in the run-up to Eid Al Fitr, the time when people buy gifts," said Tawhid Abdullah, the chairman of Dubai Gold and Jewellery Group.

Gold and jewellery sales are expected to increase by 5 per cent this Ramadan compared with the same period last year, according to him.

Spot prices of gold touched US$1,315.75 per ounce, up 4.6 per cent, on Friday as investors sought the traditional haven commodity.

The Arabian Automobiles Company, a division of AW Rostamani Group and the dealer for brands such as Nissan, Infiniti and Renault in Dubai and the Northern Emirates, recorded an increase of 50 per cent in sales enquiries during the first two weeks of Ramadan compared to the previous month.

“I believe this year’s festive promotions in the UAE will be attractive to customers from Gulf countries and the Middle East, whose influx we believe will be more than last year," said Mohammed Al Fahim, the chief executive of the Paris Gallery Group of Companies. Source: The National Back to Index

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

GULF TOURISTS AND STAYCATIONERS TO BOOST HOTELS OVER EID WEEKEND

Saturday, June 25, 2016

Arabian Gulf tourists and UAE residents are expected to fill hotel rooms in Abu Dhabi and Dubai during the Eid Al Fitr weekend as a slow economy and rising cost of living take a hit on spending.

“The demand in Dubai and Abu Dhabi is likely to be dominated by tourists from neighbouring countries such as Saudi Arabia, Qatar and Kuwait," said Rashid Aboobacker, the associate director at TRI Consulting, a leisure consultancy in Dubai. “We believe that the room rates and revenue are likely to be slightly lower than last year [during the Eid weekend in the UAE]."

The number of hotel guests this season is expected to remain similar to last year because of the sluggish demand and the rise in competition from cheaper destinations such as southern and eastern Europe that are wooing Arabian Gulf tourists, he said.

In Abu Dhabi, where room rates have stabilised this year, the average room at four- and five-star hotels was US$132.59 last month, a drop of 1.9 per cent compared to same period last year, according to Hotstats. The average occupancy rate was 74.7 per cent, a drop of 1.4 per cent.

At the five-star Dusit Thani in Abu Dhabi, the demand is expected to come from within the UAE besides Saudi Arabia and other Arabian Gulf states.

“The market has become price sensitive and travellers are looking for last minute deals and offers where they can get the best value," said Desmond Hatton, the general manager at Dusit Thani Abu Dhabi. “The business volume wouldn’t be that substantial when compared to the last year, in consideration of the current economic slowdown." The hotel is offering special packages and promotions to leverage the most out of the existing demand, he said. Room rates in Dubai have been falling over the past year as more rooms enter the market. In the latest data available, the average daily rate for four- and five-star hotels in May was $229.75, a drop of 4.5 per cent compared to the same period last year, according to Hotstats. The average occupancy rate edged up by 0.7 per cent to 84.2 per cent.

Hotels in prime Dubai locations such as Downtown, Jumeirah, the Marina and the Palm expect to achieve full occupancies while other locations expect to achieve 85 to 90 per cent occupancy levels, according to Mr Aboobacker and hotel officials.

The Ramada Downtown and Hawthorn Suites by Wyndham Jumeirah Beach Residence properties expect to be nearly full.

“Saudi Arabia will have the longest school holidays at 110 days and people expect to travel only after Eid," said Samir Arora, the cluster general manager of R Hotels who looks after Ramada Downtown Dubai and Hawthorn Suites by Wyndham in Jumeirah Beach Residence.

“Moreover, people are avoiding Turkey and Egypt because of the fear factor, and that is helping Dubai."

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

He expects to maintain last year’s rates, as the market is experiencing increased competition from more properties, he said.

About 80 per cent of the guests at these two properties are expected to be from Saudi Arabia, Kuwait and other Gulf countries. The number of arrivals from within the UAE are expected to rise by 15 per cent during the Eid weekend compared to last year, as people are cutting travel costs, he said.

The sluggish economy and the rising costs of living in the UAE have a direct effect on the demand for hotels, food and beverages, as consumers are prioritising their needs and some have become cautious on spending, said Moussa El Hayek, the chief operating officer of Al Bustan Centre and Residence in Ghusais in Dubai. The property expects an occupancy rate above 90 per cent during the weekend.

Mövenpick Hotel Jumeirah Lakes Towers expects to be full during the weekend.

“During the Eid weekend we are forecasting to be full with the highest average rate reachable during the summer period, which is indeed a good boost to our revenue similar to what we achieved last year," said Bernard Mehawech, a spokesman for the property. Source: The National Back to Index

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

DAMAC AWARDS CONTRACTS WORTH D3BN FOR DUBAI PROJECTS

Sunday, June 26, 2016

Dubai-based Damac Properties on Sunday announced that it awarded 25 construction and consultancy contracts worth Dh3 billion in the first half of 2016.

Contract awarded include the main packages for more than 2,678 villas within Akoya Oxygen, as well as the main package for Golf apartment buildings at Carson – The Drive at Akoya by Damac.

Company Managing Director Ziad El Chaar said: “In Akoya Oxygen, the total number of villas now awarded exceeds 2,670. The Golf course design is completed and we are making progress in the selection of the Golf course main contractor.

"The designs of several clusters are completed, several main contractors were appointed and work started in many areas on site. In Akoya by Damac, the Golf course is completed and the handover of approximately 766 villas is imminent.”

As of 31st March 2016, Damac delivered over 15,800 homes, including approximately 2,000 hotel units. Source: The National Back to Index

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

'ULTRA -PRIME RESIDENTIAL ADDRESS' IN

DUBAI: VILLAS SELLING FOR DH10M

Tuesday, June 21, 2016

Sales of luxury villas costing over Dh10 million in Emirates Hills have registered a 45 per cent increase, year-on- year, according to, Core, the UAE associate of Savills.

“There was more promising news from Emirates Hills - at 40 per cent, the area witnessed the highest transaction volume among all prime villa districts in the last four quarters,” the consultancy said in a new report.

Villa sales prices and rents have followed identical trends, keeping yields stable between 3.5 and 3.7 per cent over the last four years.

“With limited stock and no new supply of this scale and quality in close vicinity, central location, close proximity to other prime residential and economic clusters makes it the most sought after ultra-prime residential address in Dubai for international buyers,” says company CEO David Godchaux.

“Capitalising on these factors, we expect this niche prime submarket to hold value in the mid- to long-term in addition to holding its ‘elite address’ status.”

Dubai Marina

Although sales transaction activity levels in Dubai Marina have fallen by 25 per cent year-on-year, the community has created value for investors as prices soften.

“Dubai Marina witnessed the highest transaction activity in the apartment segment over the last few years.

“As expected, headline occupancy levels are nearly 90 per cent in top performing towers and the prime rental market has remained relatively steady due to the continued demand from expatriates.

“Nonetheless, prime sale prices have dropped 8 per cent year-on-year, although this has created investor opportunities through stable yields averaging between 5-6 per cent,” adds Godchaux.

Downtown Dubai

The softened sales market is pushing financially sound investors to take a long-term approach by holding onto properties and leasing prime assets rather than flipping in Downtown, as the rental market continues to be strong.

Transaction levels have, however, come down by 19 per cent.

The district, which houses Burj Khalifa, the world’s tallest tower, and the new Dubai Opera, maintains its high headline occupancies, currently ranging over 85 per cent across most of the prime towers.

The rental market has shown a two per cent year-on-year increase, bucking apprehensions of a weakening rental demand due to a consolidating financial jobs market.

Investment

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

According to Core, the prime residential prices in Dubai are almost 60 per cent below prime New York, 75 per cent below prime London and 85 per cent below prime Hong Kong.

“Aided by the current softened sales market, potential capital appreciation and higher long-term yields, Dubai’s prime residential real estate is extremely good value by global levels.

“With no holding charges and comparatively lower transaction costs, Dubai stacks up favourably against other competing global cities as an investment destination for global ultra-high net worth individuals and investors,” states Godchaux.

“Capitalising on these factors, we expect this niche prime submarket to hold value in the mid- to long-term in addition to holding its ‘elite address’ status.”

Dubai Marina

Although sales transaction activity levels in Dubai Marina have fallen by 25 per cent year-on-year, the community has created value for investors as prices soften.

“Dubai Marina witnessed the highest transaction activity in the apartment segment over the last few years.

“As expected, headline occupancy levels are nearly 90 per cent in top performing towers and the prime rental market has remained relatively steady due to the continued demand from expatriates.

“Nonetheless, prime sale prices have dropped 8 per cent year-on-year, although this has created investor opportunities through stable yields averaging between 5-6 per cent,” adds Godchaux.

Downtown Dubai

Transaction levels have, however, come down by 19 per cent.

The rental market has shown a two per cent year-on-year increase, bucking apprehensions of a weakening rental demand due to a consolidating financial jobs market.

Investment

According to Core, the prime residential prices in Dubai are almost 60 per cent below prime New York, 75 per cent below prime London and 85 per cent below prime Hong Kong.

“Aided by the current softened sales market, potential capital appreciation and higher long-term yields, Dubai’s prime residential real estate is extremely good value by global levels.

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

MOHAMMAD BIN RASHID LAUNCHES

DUBAI INDUSTRIAL STRATEGY

Saturday, June 25, 2016

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, today launched the Dubai Industrial Strategy that aims to elevate Dubai into a global platform for knowledge-based, sustainable and innovation-focused businesses.

Shaikh Mohammad reiterated that the UAE is on track to achieving its objectives with regard to integrating and complementing its economic sectors and optimising industrial capacity to supplement the gross domestic product (GDP) and other revenue streams to the national economy in the coming years. He said: “The Dubai Industrial Strategy aims to leverage our advanced infrastructure and enabling environment to transform UAE into a global platform for innovative industries and a destination of choice for international companies seeking an integrated and favourable environment for growth and sustainability.”

He added: “With the launch of the Dubai Industrial Strategy, we are taking one more step towards the future. We have laid down a strong foundation that blends our strategic location and infrastructure with our ambition, confidence and experience. Today, we have put in place the basic framework needed to compete globally in the industrial sector and develop national talents. We are one step closer to achieving the goal of making Dubai a homeland for innovators, a favourite place to live and work in, a global economic hub and a preferred destination for visitors.”

Shaikh Mohammad further pointed out: “Sustainable development involves activating all pillars of the economy. A conducive environment is required to achieve our targets that focus on knowledge, science and research, which form the foundation for the development of industries.”

He added that a sound economy today means a diverse and integrated economy led by the industry and manufacturing sectors and built on pillars of innovation and creativity. The UAE Vice-President said: “Nations are recognised for what they produce and offer in products and services and the value they add to the global economy.”

The strategy was launched in the presence of Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, and Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai.

The event was also attended by Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman and Chief Executive of Emirates Airline and Group, Mohammad Abdullah Al Gergawi, Minister of Cabinet Affairs and The Future, Sultan Bin Saeed Al Mansouri, Minister of Economy, Mohammad Ebrahim Al Shaibani, Director-General of His Highness the Ruler’s Court of Dubai, Sultan Ahmad Bin Sulayem, Chairman of Ports, Customs and Free Zone Corporation, in addition to a number of business leaders in Dubai.

The development of the Dubai Industrial Strategy was led by Jebel Ali Free Zone Authority (Jafza) and Dubai Industrial Park in Dubai Wholesale City with support from the Executive Council of Dubai. Numerous industry experts from more than 25 government entities and the private sector were also involved during the development phase.

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

Source: Gulf news

Back to Index

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

TIME FOR A FRESH REALITY CHECK ON

DUBAI PROPERTY

Wednesday, June 22, 2016

The strategy aims to develop and implement long-term industrial policies to enhance the competitiveness and sustainability of the industrial sector in Dubai and across its free zones. It identifies target industrial sectors and focuses on strengthening industrial integration — connecting the target sector with educational and research institutions to stimulate innovation and creativity with a view to developing strategic industries. In addition, the Dubai Industrial Strategy aims to create an attractive environment for these strategic industries.

The Dubai Industrial Strategy is based on five key objectives that will serve as the foundation for Dubai’s industrial future. The strategy aims to increase the total output and value-addition of the manufacturing sector, enhance the depth of knowledge and innovation, make Dubai a preferred manufacturing platform for global businesses, promote environment-friendly and energy-efficient manufacturing and make Dubai a centre for the global Islamic products market.

The Dubai Industrial Strategy has further identified six priority sub-sectors — aerospace, maritime, aluminum and fabricated metals, pharmaceuticals and medical equipment, food and beverages and machinery and equipment. These sub-sectors were chosen based on their importance to the Dubai Industrial Strategy and Dubai Plan 2021, as well as their future growth prospects, export potential and mid-term to long-term economic impact.

Aerospace

In the aerospace sector, Dubai can play a pivotal role through manufacturing spare parts for aircraft and providing maintenance and repair services. As per the strategy, Dubai will leverage its position as a global hub for aviation to increase the market added value (MVA), increase job creation and step-up the levels of research and development in this sector.

The crucially important aviation sector that supports the movement of passengers through Dubai has grown substantially over the years to reach 70 million in 2014. The Dubai-based Emirates airline alone currently owns a fleet of 239 aircraft in service and a further 269 that have been ordered.

Maritime Industry

Dubai is considered a front-runner in the field of maritime maintenance and repair through its Dry Docks World and Dubai Maritime City. The emirate also has a unique global location as a centre of trade and maritime services — comprising Jebel Ali Port, the largest seaport in the Middle East with a capacity of 21 million containers. Dubai is in a prime position to expand its activities to attract more traffic to its facilities, especially larger ships and offshore structures. Dubai can also foray into manufacturing yachts and boats to meet domestic demand.

Aluminium and Fabricated Metals

Dubai is home to one of the largest aluminium smelters worldwide. The UAE is among the top global exporters of aluminium — it exports 88 per cent of the 2.4 million tonnes it produces annually. According to the Dubai Industrial Strategy, the emirate has the opportunity to raise its production capacity in metal fabrication through

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

the development of its current base in aluminium production. This will be achieved by enhancing the capabilities of the downstream and finished goods manufacturing domains to increase the overall added value and maximise benefits from the existing smelters. The downstream activities i.e. the final aluminium products industry will further enhance the global reach of domestic producers and attract players from the international auto and aerospace industry.

Pharmaceuticals

The Dubai Industrial Strategy has chosen the pharmaceutical sub-sector for its vital importance and added value. With low local and regional production capacities, the countries in the Gulf Cooperation Council (GCC) region currently import 80 per cent of their pharmaceutical requirements. Lucrative opportunities exist to develop this strategic sector. The first phase of the strategy will focus on manufacturing cosmeceuticals (cosmetics that are claimed to have medicinal properties) to benefit from the growth of this niche market — particularly given the increasing demand for halal cosmeceuticals. The initial focus on this sector will help increase investments in research and development (R&D), infrastructure and building capacity and help step-up to the next phase of manufacturing pharmaceuticals that requires advanced technology, skilled human capital and strong R&D capabilities.

Food and Beverages

The global food and beverages (F&B) market was valued at approximately $4 trillion (Dh14.71 trillion) in 2014. Dubai’s exports in the same year were worth Dh47.7 billion. With countries in the GCC region importing 70 per cent of their food needs and registering an annual growth of more than 3 per cent, Dubai can play a significant role in becoming a major hub for food products in the region. Dubai’s infrastructure, airports and ports, and logistical capabilities serve as drivers for the success of the F&B sector as it relies heavily on ease of access and speed of delivering raw materials and products.

The Dubai Industrial Strategy also aims to leverage the growing demand for halal products to enhance Dubai’s position as the Capital of the Islamic Economy and expand local manufacturing capabilities for producing high quality halal products.

Machinery and Equipment

The Machinery and Equipment sector is one of the largest industrial sub-sectors in Dubai and accounts for about 25 per cent of the industrial GDP due to the high domestic and regional demand for construction machinery and equipment. The global market for Machinery and Equipment is estimated at US$3.5 trillion. Developing this sector will add significant value to the GDP — especially given Dubai’s location and reputation as a hub for machinery and equipment in the region and beyond.

Strategic Initiatives

The Dubai Industrial Strategy has identified 75 initiatives to transform Dubai into a global platform for industries based on knowledge, innovation and sustainability. The strategy is projected to help generate an additional Dh160 billion by 2030.

Sultan Ahmad Bin Sulayem, Group Chairman and Chief Executive Officer of DP World and Chairman of Ports, Customs and Free Zone Corporation asserted that the launch of Dubai Industrial Strategy, in line with the vision of Shaikh Mohammad, is aligned with the UAE’s road map for sustainable progress in the post-oil era and reinforce nation’s efforts to diversify the national economic structure. He said: “The launch of Dubai Wholesale City, the world’s largest city for wholesale trade extending over 550 million square feet at a cost of Dh30 billion, reinforces Dubai’s clear economic vision for the future through the creation of dynamic new sectors and the reformatting of existing sectors on a global scale.”

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

He mentioned that the UAE’s industrial landscape has developed significantly over the years owing to the conscious effort towards increasing the sector’s growth. This growth has been achieved through putting in place a strategic plan to expand and attract foreign and domestic investments by setting up industrial zones across the UAE that provide world-class infrastructure and operational facilities.

Sultan Bin Sulayem pointed out that Dubai is already regarded as a major trading centre on the international map and under the directives of Shaikh Mohammad, the emirate is poised to emerge as a global industrial centre and city of integrated logistics. Dubai will offer all the services that investors seek to push into new and emerging markets of the world.

He stressed that the Dubai Industrial Strategy includes a range of investment incentives to attract more industrial investments to the Jebel Ali Free Zone (Jafza). These incentives will encourage investors to create production lines locally and use Jafza as a springboard for conveying their products to diverse countries around the world.

Sultan Bin Sulayem highlighted that the strategy also comprised a core developmental aspect — including Emiratis in the nation’s development process and empowering them with knowledge and skills through engaging them in various industrial projects.

Dr Amina Al Rustamani, Group CEO, Tecom Group, developer of specialised parks including Dubai Industrial Park in Dubai Wholesale City, said: “His Highness Shaikh Mohammad Bin Rashid Al Maktoum has launched the Dubai Industrial Strategy in line with the economic vision of Dubai. This strategy forms a cornerstone for the development of an industry sector based on innovation, knowledge and creativity.”

She added: “We are keen on increasing the value added of the industrial sector to the Dubai’s GDP as well as that of the UAE. The development of this sector is a main driver for the economy with its high potential and capability. We are committed to implementing this strategy on the ground and benefiting from its potential to significantly build capacities and provide jobs to our national workforce.”

Abdullah Belhoul, CEO, Dubai Wholesale City, which includes the Dubai Industrial Park, said: “The launch of the Dubai Industrial Strategy articulates the vision of our leadership to prepare for a post-oil future and establish a diversified knowledge-based economy. Dubai Industrial Park will play a pivotal role in this transition as a leading destination for industry and logistics — boasting more than 700 local, regional and global companies. The industrial park also features a halal manufacturing zone that will help fulfil the objectives of this strategy. In the next phase of implementation of the strategy, Dubai Industrial Park will collaborate with all the partners on realising initiatives and action plans to accomplish these strategic goals. We will work to translate the leadership vision into reality and support Dubai’s transition into a global platform for industries based on knowledge and innovation.”

Ebrahim Mohammad Al Janahi, Deputy CEO and Chief Commercial Officer of Jafza, said: “The Dubai Industrial Strategy has outlined policies to ensure a steady pace of growth in all sectors and has assigned specific tasks to every economic institution — whether free zones or industrial zones. These promising policies will stimulate the industrial sector and attract more foreign investment to the country.”

Al Janahi pointed out that the strategy helped to foster innovation and provided customised solutions in addition to creating a common language for the stakeholders. Its implementation will further drive the growth of the industrial sector and open new horizons to introduce and consolidate the ‘Made in Dubai’ brand initiative. This branding would build the credibility of the emirate for manufacturing products to highest international standards.

Al Janahi stressed that Jafza is developing a marketing plan tailored to the Dubai Industrial Strategy to attract more global industrial companies to the free zone and provide incentives to successful businesses based within the zone.

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

He said: “Jebel Ali Free Zone has more than 765 industrial companies from 73 countries. These companies employ nearly 73,000 employees and operate over an area of 14 million square meters. We intend to increase these numbers in the coming years and contribute to the quantum leap that the national economy will achieve through implementing this strategy.”

According to the Dubai Industrial Strategy, the industrial sector is expected to grow by an additional Dh18 billion by 2030, creating 27,000 jobs with exports forecast to increase by Dh16 billion. Meanwhile, investment in research and development will increase by an additional Dh700 million by 2030.

The contribution of the industrial sector to the GDP was around 14 per cent in 2014. The sector’s resilience and competency led to its continued growth over the past years — even during the global financial crisis. Source: Gulf news Back to Index

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

DUBAI REALTY EXPERT SEES 8% RENT

DECLINE

Tuesday, June 21, 2016

Property analysts remain split about whether Dubai’s real estate market is already out of the woods and the era of lower rents is over.

According to a recent analysis, it is a bit early to rule out further declines this year, given that there is still little activity in the residential sector amid the jobs slowdown and low oil prices.

Jesse Downs, managing director of Phidar Advisory, argued that softening demand will continue to put pressure on residential rents to drop to more affordable levels this year, giving some relief to tenants who are still spending too much of their income on housing.

Downs said they expect average rents to fall by approximately 8 per cent to 10 per cent over the next three months, with some areas forecast to post “even higher declines.”

“The rent correction will continue likely for another 12 to 18 months. We expect to experience a sharper rent decline this summer followed by a period of more gradual rent declines and, then, eventually, stabilisation in mid to late 2017,” Downs said.

“These rent declines are caused by softening demand, especially in mid-high to high income bracket, a consequence of the current economic situation which has increased job losses and slowed new job creation,”Downs told Gulf News.

“Rent declines will likely accelerate in the summer due to the seasonality of rent contracts, especially for households with children in school.”

Downs’ forecast runs contrary to recent analysis by other experts that the market is at the trough stage and nearing recovery. Consultancy firm ValuStrat said that based on their price index for the month of May, there is now a “clear trend of a plateau” in residential prices.

Last month, ValuStrat’s overall price index registered 98 points, showing “no significant” change in values when compared to the previous eight months and down one per cent when compared to the same period last year. “This marks a continuation of evidence of price stabilisation,” said ValuStrat.

According to the latest analysis by Bayut.com, a property portal in Dubai, average apartment rents in Dubai posted a 1.57 per cent increase in May, when compared with the rental values in April. The average rent for studio apartments rose to Dh57,000 from Dh56,000 a year.

One-bedroom apartment rents increased by 1 per cent to Dh95,000, while rents for 2-bedroom flats remained stable at Dh149,000. Four-bedroom flats aren’t getting any cheaper, either, with rents increasing from Dh294,000 to Dh321,000.

Downs said that Dubai’s property market is a reflection of global and regional trends. With employment levels also slowing down in other parts of the globe, it is normal to expect the same for the domestic market.

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

“In some respects, this reflects global trends - for example, banks are cutting jobs worldwide and this has been happening in Dubai, too. For other sectors, this trend is driven by the delayed impact that a low oil price has on regional liquidity and inevitably on the region's hub: Dubai,” she pointed out.

“However, this is not a bleak projection, it will have positive impacts. Housing costs are typically 35 per cent to 40 per cent or more of household spend, so bringing down this cost can have a significant impact on the cost of living in Dubai, which makes it easier for businesses to retain employees and create jobs. From a household's perspective, spending less on housing means more disposable income, which can help other sectors.”

Standard & Poor’s Rating Services had earlier said that the UAE real estate market in general is not showing any signs of market improvement yet. It said that the market will continue to face pressure from declining oil prices and softening of hiring and business activities. Source: Gulf news Back to Index

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

LAND DEPARTMENT OFFERS A MASTERS IN

REAL ESTATE

Sunday, June 19, 2016

The Dubai Real Estate Institute, the educational arm of Dubai Land Department, is offering an MSc in “real estate and property management” in tandem UK’s University of Salford. The university has opened applications from students to register and join the programme, which runs for three semesters. Applicants must have either a minimum of a second class undergraduate honours degree, or an appropriate and recognised professional qualification such as MRICS, MRTPI or MCIOB. “This affordable degree provides all of the essential learning mechanisms to ensure students build an in-depth understanding of the complex dynamics and influences of the property market, property management, real estate laws, planning, development, valuation and appraisal techniques,” said Mahmoud Al Burai, Executive Director of Dubai Real Estate Institute. Source: Gulf news Back to Index

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

DUBAI’S PREMIUM VILLAS FACE THE BRUNT OF CORRECTION

Monday, June 20, 2016

Villas in Dubai have faced the brunt of investor concerns, with those units priced upwards of Dh10 million seeing a 44 per cent drop in the last 12 months.

Sales prices per square foot for villas on the Palm remained “relatively steady with just a 4 per cent year-on-year drop as landlords continue to command prices for well-maintained or refurbished properties,” says a new report from Core, the consultancy.

“With a total stock of approximately 1,700 villas, an estimated 150-200 villas are currently available for sale on Palm Jumeirah,” said David Godchaux, CEO. “More units are anticipated to be held by investors as many are not pressed financially to sell in this bottoming market, while a few others look towards commanding premiums by refurbishing existing units and attracting buyers who are seeking contemporary products.

“A strong recovery in prices is not anticipated in the near term as we expect this underlying stock to keep the sales prices static even if the demand revives in the coming quarters.”

Transaction activity levels on Palm Jumeirah villas was down by around 25 per cent over the last 12 months.

Overall sales activity levels in Dubai Marina dropped 25 per cent, while prime apartment sales volume saw a fall of 43 per cent year-on-year.

“However, Dubai Marina witnessed the highest transaction activity in the apartment segment over the last few years,” said Godchaux. “As expected, headline occupancy levels are nearly 90% in top performing towers and the prime rental market has remained relatively steady due to the continued demand from expatriates.

“Nonetheless, prime sale prices have dropped 8 per cent year-on-year, although this has created investor opportunities through stable yields averaging between 5-6 per cent.” Source: Gulf news Back to Index

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

DUBAI WINS BID TO HOST WORLD REAL ESTATE CONGRESS IN 2018

Sunday, June 19, 2016

Dubai Business Events, the city’s official convention bureau and a division of Dubai Tourism, in partnership with the Dubai Real Estate Institute, DREI, the education arm of the Dubai Land Department, DLD, has announced that the emirate is to host the 69th World Real Estate Congress in 2018. The annual event, organised by the International Real Estate Federation, FIABCI, will be making its debut in the Middle East with the event, and is expected to attract more than 1,000 real estate professionals from over 60 countries to explore the ‘Future of Cities’. Source: Gulf news Back to Index

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

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

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

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

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

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