News Brief 40

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NEWS BRIEF 40

SUNDAY, 07 OCTOBER 2018

RESEARCH DEPARTMENT

ABU DHABI | AL AIN | DUBAI SHARJAH | JORDAN | KSA IN THE MIDDLE EAST FOR OVER 30 YEARS © Asteco Property Management, 2018 asteco.com

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REAL ESTATE NEWS

UAE / GCC SAUDI HIGH SPEED TRAIN ANNOUNCES LAUNCH DATE FOR PASSENGERS SAUDI ARABIA EXPECTS TO BOOST STATE SPENDING 7% NEXT YEAR UAE CABINET APPROVES BIGGEST-EVER BUDGET OF DH180B THESE WORKERS CAN GET 10-YEAR VISA IN UAE HIGHER OIL PRICES AND INCREASED GOVERNMENT SPENDING PROMPT IMF TO RAISE UAE GROWTH OUTLOOK TIME TO RETHINK DUBAI'S MORTGAGE CAP UAE’S PROPERTY MARKET FOCUSES ON THE RIGHT NUMBERS THE RATE HIKE EFFECT ON REAL ESTATE A TALE OF 3 WOMEN: REAL ESTATE SUCCESS STORIES A NEW DAWN IN DUBAI REAL ESTATE BLOCKCHAIN GAINING TRACTION TO BUY OR RENT PROPERTY REFORMS KEY TO BOOSTING BUSINESS CLIMATE IN GCC UAE WEALTH SET TO GROW 51% TO DH5.14 TRILLION BY 2027 UAE NON-OIL PRIVATE SECTOR GROWTH REMAINED STEADY IN SEPTEMBER UAE'S BLOOM RELEASES TWO TOWERS FOR SALE AT DUBAI RESIDENTIAL PROJECT SAUDI ARABIA OUTLOOK STABLE AS 'MODERATE' GROWTH CONTINUES TO 2021, S&P SAYS BAHRAIN BANKRUPTCY LAW TO SPUR FOREIGN INVESTMENT SOBHA GROUP TO BEGIN WORK ON OMAN MIXED-USE PROJECT IN EARLY 2019 BANK LAUNCHES HOME LOANS FOR NON-RESIDENTS TO BUY IN THE UAE OPINION: HAS REAL ESTATE FINALLY TURNED A CORNER IN THE UAE? WORK SET TO START ON MANDARIN ORIENTAL, MUSCAT UAE'S ROTANA LAUNCHES FIRST SAUDI HOTEL UNDER NEW DEAL INDONESIAN HOTEL GROUP INKS DEAL TO MAKE SAUDI DEBUT

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REAL ESTATE NEWS

FOR ESHRAQ, IMMEDIATE FOCUS IS BUILDING ITS LAND BANK BUILDING THE UAE’S NEXT MEGA COMMUNITIES BUDGET PLANNING 101 FOR FIRST-TIME HOMEBUYERS AFFORDABLE HOMES IN UAE: NOT THERE YET UAE PLEDGES DH3B TO HELP BOOST JORDANIAN ECONOMY

DUBAI DUBAI REAL ESTATE PRICES, RENTS SLIDE IN Q3 ELLINGTON REPORTS SURGE IN CHINESE INVESTORS FOR ITS PREMIUM RESIDENCES IN DUBAI DUBAI PROPERTIES IN $400K PRICE RANGE OFFER BEST LONG-TERM RETURNS, EXPERTS SAY DUBAI REAL ESTATE SEES 9,500 FIRST-TIME BUYERS A COMPELLING CASE TO INVEST IN DUBAI REALTY REMAINS CITYSCAPE GLOBAL TO TEST PROPERTY MARKET'S MOOD DUBAI INVESTMENTS SAYS FLAGSHIP MIRDIF HILLS PROJECT 50% COMPLETE HEART OF EUROPE DEVELOPER REVEALS FIRST HOTEL LAUNCH PLAN DUBAI'S UNION PROPERTIES SET TO UNVEIL $680M AVENUE DISTRICT DAMAC'S AYKON HOTELS TO BOAST ROBERTO CAVALLI INTERIORS WHAT A MILLION DOLLARS CAN BUY IN DUBAI MEYDAN FLOATS A WATERFRONT PROJECT IN JEBEL ALI DUBAI 2.0: 10 WAYS TO PREPARE FOR THE FUTURE DISTRICT 2020: A PLACE TO CONNECT, CREATE AND INNOVATE WHAT WILL 2020 BRING? BUILDING BOUTIQUE RESIDENCES IN DUBAI IT’S TIME TO RAISE THE BAR EVEN HIGHER CREATING AFFORDABLE LUXURY

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REAL ESTATE NEWS

LA RIVIERA OPENS SHOW APARTMENTS A COMPELLING CASE TO INVEST IN DUBAI REALTY REMAINS FINDING THE RIGHT TIME TO MAKE A PROPERTY EXIT IN DUBAI ‘READY’ HOMES TILT THE BALANCE IN DUBAI’S PROPERTY MARKET IMF: DUBAI SET FOR ROBUST GROWTH MILLENNIUM BINGHATTI RESIDENCES TO BE SHOWCASED AT CITYSCAPE GLOBAL DAY 1 OF CITYSCAPE GLOBAL SEES SUBDUED LAUNCHES DUBAI INTERNATIONAL AIRPORT SETS NEW WORLD RECORD DUBAI'S MADINAT JUMEIRAH LIVING PROJECT TO BREAK GROUND IN 2019 DON'T DESTROY THE TRUST IN DUBAI'S PROPERTY MARKET, RERA CEO TELLS DEVELOPERS DUBAI DEVELOPER PICKS JEBEL ALI FOR LOW-COST RENTAL HOMES DUBAI'S DEIRA WILL BE WEARING A NEW LOOK AS PART OF A MEGA-PROJECT DUBAI HOLDING DIRECTOR SEES END IN SIGHT TO REAL ESTATE MARKET CORRECTION DUBAI'S FDI SOARS 26% TO $4.84BN IN FIRST HALF OF 2018, GOVERNMENT SAYS REVEALED: HOW WE FEEL ABOUT THE DUBAI REAL ESTATE MARKET REVEALED: HOW DUBAI HOMES ARE BECOMING MORE AFFORDABLE BIG BUSINESS NAMES RUSH TO FILL DIFC'S THE EXCHANGE DUBAI PROPERTY MARKET TO IMPROVE IN 2019, SAYS ASTECO NAKHEEL LAUNCHES NEW LUXURY HOMES IN DUBAI'S JUMEIRAH PARK $171M CONTRACTS AWARDED TO COMPLETE DUBAI EXPO 2020 ROADS NETWORK DUBAI DEVELOPER LAUNCHES WASL GATE PROJECT ONTO FREEHOLD MARKET DEVELOPER GEMINI STARTS HANDOVER OF MAIDEN DUBAI PROJECT IBIS DUBAI AL BARSHA PLANS MAJOR RENOVATION PROJECT DUBAI EXPANDS TOURISM AMBITIONS, SETS NEW TARGET FOR 2025 SHORT-STAY HOMES PROVIDE SILVER LINING FOR DUBAI’S LANDLORDS

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REAL ESTATE NEWS

SHAIKH HAMDAN VISITS FALCONCITY OF WONDERS STAND HOUSE-HUNTERS ON THE PROWL AS PRICES REMAIN COMPETITIVE AFFORDABLE HOUSING: FINDING THE RIGHT BALANCE PROPERTY BUYERS IN DUBAI WANT TO SEE COST SAVINGS NOW DUBAI RESIDENTS’ PURSUIT OF HAPPINESS A PLACE TO CALL HOME: VILLA OR HIGH-RISE? PLANS FOR FRENCH PAVILION AT EXPO 2020 UNVEILED HOW ARE DEVELOPERS ATTRACTING PROPERTY BUYERS? LOWER REAL ESTATE PRICES HAVE LEVELLED THE PLAYING FIELD READY PROPERTY SPACES ARE THE REAL(TY) WINNERS RIGHT TIME TO INVEST IN AFFORDABLE RENTAL STOCK

ABU DHABI 10 NEW COMMUNITY SCHOOLS TO COME UP IN ABU DHABI IMKAN PLANS DH15BN COASTAL ‘RIVIERA’ ON ABU DHABI-DUBAI BORDER

NORTHERN EMIRATES SHARJAH FREEHOLD CAN EXPECT ANOTHER UPBEAT YEAR COMMITTED TO SHARJAH FEEL THE PULSE OF UAE'S HISTORY AT HEART OF SHARJAH KEY DUBAI-SHARJAH ROAD PROJECT TO OPEN TODAY 300 NEW PARKING LOTS AROUND SHARJAH MOSQUES BY YEAR-END NEW $95M LA MER TOWER TO OFFER 350 SHARJAH APARTMENTS ARADA REVEALS FINAL MASTERPLAN OF CENTRAL HUB FOR $6.8BN MEGA PROJECT RAK PROPERTIES MULLS SUKUK ISSUANCE FROM 2019 TO GROW PORTFOLIO NEW HOTEL AND ENTERTAINMENT PARK HEADING TO RAS AL KHAIMAH

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REAL ESTATE NEWS

MARJAN CEO HOPES TO ATTRACT FDI TO 'UNTAPPED' LOCAL SECTORS IN RAK SOBHA TO MAKE ANNOUNCEMENT ON $6.8BN UAQ PROJECT 'SOON', SAYS PRESIDENT RAS AL KHAIMAH WILL TARGET OPPORTUNITIES IN AFFORDABLE HOUSING SHARJAH, RAK DEVELOPERS BID TO CLEAR EXISTING STOCK

INTERNATIONAL OIL PRICE COULD REMAIN HIGH FOR SOME TIME GLOBALISING THE REIT EGYPT’S SAWIRIS RE-LAUNCHES PROPERTY UNIT WITH $2BN BUILD TARGET WEAK RUPEE TO ATTRACT NRI INVESTMENTS INTO INDIAN REAL ESTATE: REALTY PLAYERS

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OIL PRICE COULD REMAIN HIGH FOR SOME TIME Sunday, September 30, 2018 Oil prices rose last week to more than $80 per barrel for the first time since November 2014. Rather than rising on the back of strong demand growth and a positive outlook for the global economy, the recent move in prices has been catalysed by growing market anxiety over supply. In a reversal of the glut the market endured from 2015 to 2017, there is a real risk we could enter 2019 with not enough oil to go around, setting the stage for oil prices to remain high for some time. The most immediate source of a supply risk is Iran. US sanctions that directly target Iran’s oil exports will come into effect in early November and estimates of how much oil could be taken off the markets vary from 750,000 barrels per day to as much as 1.5 million barrels per day. Regardless of the scale of the decline, a sizeable drop from a significant oil exporter will tighten markets in the final months of 2018 and importers will need to scramble to find replacement barrels. The spectre of sanctions has already led importers to move away from taking cargoes from Iran and recent market surveys point to a drop in Iranian exports of more than 400,000 barrels per day in August alone. The degree of compliance by major importers of Iranian crude already appears to be high, with South Korea, the European Union and India cutting back their purchases sharply in recent months. The Trump White House is showing no signs of easing the economic pressure on Iran and has so far been reticent to offer waivers on sanctions to importers. Considering the hostile rhetoric traded between the presidents of both the US and Iran at the UN this month, geopolitical risks will continue to exert an upward pull on oil. While not relaxing the pressure on Iran, President Trump has publicly criticised Opec members several times for not raising production to dampen current prices, including declaring that Opec was “ripping the world off” in front of the UN General Assembly. Opec members did agree to raise production at their June meeting to compensate for deteriorating production in Venezuela and to put an end to the ‘over-compliance’ with their 2017 production cut agreement with other countries, notably Russia. But so far the increase has not been large enough to cap prices and Opec countries will be wary of increasing output too much and risk pushing the market back into surplus. Within Opec there are only a few countries that have the capacity to meaningfully raise production, most prominently Saudi Arabia, which has historically claimed an ability to raise production to 12 million barrels per day compared with current levels of around 10.4 million barrels per day. Saudi Arabia has not tested sustained production at that level, however, and there is likely to be a mismatch in terms of the quality of oil it holds in reserve compared with what is actually needed in the market. While an increase in production now could help to limit the gains in prices it could end up causing more problems further down the road. Opec’s production is currently at around 90 per cent of its total capacity, leaving it little room to adjust production upward to compensate for more unanticipated supply outages or rapid increases in demand.

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But it’s not just in Opec where supply risks are exerting upward pressure on prices. In the US the rapid pace of supply growth from shale oil producers is butting up against infrastructure constraints, and Canada is also facing similar takeaway capacity issues. High oil prices will be welcome news for the GCC’s oil and gas producers as they help shore up fiscal and external balances. But for importers oil prices around $80 per barrel are only another economic headwind to overcome in the midst of rising trade tensions and deteriorating financial conditions in several large emerging markets. One way for oil prices to fall, albeit a gloomier one, would be if disruptions to global trade sank overall commodity demand. After several years awash in a ‘glut’ of oil, markets need to be prepared to adjust to a sustained period of tightness and endure higher prices. While expectations of oil as high as $100 per barrel are more exclamatory than realistic, sentiment may help push oil prices up from their current levels before we see any downside correction. Tim Fox is chief economist at Emirates NBD. With inputs from Edward Bell, the director of commodity research at the bank. Source: The National Back to Index

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DUBAI REAL ESTATE PRICES, RENTS SLIDE IN Q3 Sunday, September 30, 2018 According to Bayut data, prices for renting apartments decreased slightly, with the most significant decreases being for two-bedroom units in Deira and International City, where prices fell by as much as 8.3 percent. Real estate purchase and rental prices have fallen modesty in the third quarter of 2018, according to a new report from Bayut.com. According to Bayut data, prices for renting apartments decreased slightly, with the most significant decreases being for two-bedroom units in Deira and International City, where prices fell by as much as 8.3 percent. In other areas, such as Al Nahda, Dubai Sports City and Jumeirah Lakes Towers, rents were more or less stable when it came to rents throughout the quarter. The most searched for area, according to Bayut, remains Dubai Marina, where the average cost for renting a studio is AED 55,000, compared to AED 81,000 for one-bedroom and AED 120,000 for two-bedrooms. Across Dubai, rents were found to not have fallen drastically in any of the top 10 locations compared to the previous quarter. When it came to sales, most areas reported a fall in prices, particularly for studios in International City (8.2 percent). In Jumeirah Village Circle, however, prices for studios went up from AED 440,000 in Q2 to AED 473,000 in Q3. As with apartment rentals, Dubai Marina remained the most popular choice for apartment sales. Prices in the area remained generally stable compared to Q2, with the average price for a studio at AED 850,000, compared to AED 1.21 million for one-bedroom and AED 2 million for two-bedroom apartments. Most other areas showed a decline in average sales prices, with the exception of Jumeirah Beach Residences, where prices for studios went up from AED 1 million to AED 1.15 million in Q3. Prices for one-bedroom apartments remained stable at AED 1.5 million, while two-bedroom apartments went up from AED 2.1 million in Q2 to AED 2.2 million in Q3. “The average fall in property prices for this quarter is in line with the trends we saw in the H1 market report,” said Bayut CEO Haider Ali Khan. “It’s definitely still a buyers and renters market, but modest decreases in price suggest potential bottoming-out across the emirate. Ali Khan added that “the time is perfect to invest and become homeowners or upgrade to bigger rental properties in Dubai and benefit from decreased prices floating in the market at the moment.” The Bayut report also noted there a number of sub-communities are significantly more popular among buyers and renters. Al Reem, for example, made up over 46 percent of total searches in Arabian Ranches, while Living Legends in Dubailand constituted almost half – 49 percent – of searches in the area. Source: Arabian Business Back to Index

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ELLINGTON REPORTS SURGE IN CHINESE INVESTORS FOR ITS PREMIUM RESIDENCES IN DUBAI Sunday, September 30, 2018 Ellington is a customer-focused developer with a growing portfolio of bespoke, aesthetic and high-quality homes, and has now launched a new platform in Mandarin, as part of an upgraded system initiative, to support Chinese investors. Ellington, the Dubai-based design-centric lifestyle developer, has reported that Chinese customers are now among its top 5 primary investors. Since 2016, there has been a rise in sales to Chinese buyers of more than 150%. Ellington is a customer-focused developer with a growing portfolio of bespoke, aesthetic and high-quality homes, and has now launched a new platform in Mandarin, as part of an upgraded system initiative, to support Chinese investors. Robert Booth, managing director, Ellington: “Dubai is a hub city in China’s Belt and Road Initiative, and the ties between China and the UAE, at large, has gained further traction through stronger trade and cultural relations. Dubai also reports an increase in the number of Chinese tourists as well as strong bilateral business ties. “This has in turn contributed to Ellington reporting a surge in Chinese investment as part of our primary customer base. We have now enhanced our systems and launched a new online platform in Mandarin to meet the demands of Chinese investors and customers, who look for premium homes in Dubai.” Ellington’s property portfolio is a perfect fit to the requirements of Chinese investors and home-buyers in Dubai, given their proximity to retail and leisure attractions as well as educational institutions, which are among the prime considerations of Chinese investors. The focus of Ellington on design and build quality in addition to timely delivery add to the appeal of these projects. Since inception, Ellington has placed primary importance in recruiting a multicultural, talented sales department, and the firm now has a Mandarin-speaking team to look after Chinese customers. Source: Arabian Business Back to Index

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DUBAI PROPERTIES IN $400K PRICE RANGE OFFER BEST LONG-TERM RETURNS, EXPERTS SAY Sunday, September 30, 2018 Market activity in studios, one, two and three-bedroom apartments valued at this price range are the most active segment in Dubai’s real estate sector. Dubai real estate assets valued at AED 1.5 million ($408k) offer the best long term returns for potential investors, according to real estate consultants from Cluttons Middle East and JLL. According to Cluttons, market activity in studios, one, two and three-bedroom apartments valued at this price range are the most active segment in Dubai’s real estate sector. “At this price point one and two bedroom apartments in an established area are dominating most of the activity in the market,” said Richard Paul, head of professional services for Cluttons Middle East. “This is also the case for prospective owner occupiers who wish to cease paying rent. “It does depend on where the individual sits financially, but if they have adequate equity, it makes sense for them to contemplate paying off their own mortgage and look at real estate as a mid and long-term investment,” he added. Paul added that he would invest that families looking to invest should look at properties below the AED 1.5 million price point. “At this price point, even if the decision is to lease the property investment out, post-acquisition, a purchase should expect a 7 to 9 percent gross yield in some areas and subsequently after interest payment, service charges and upkeep, there is still good profit rent to be achieved,” he added. Bottom of the cycle JLL research suggests that while residential prices in Dubai have fallen around 20 percent since the last market peak in October 2014, the market is likely approaching the bottom of its cycle, with only limited further declines expected over the next year. “The majority of expatriates in the UAE have traditionally sought to rent rather than purchase properties,” said JLL Mena head of research Craig Plumb. “As the market has become more mature, with less price volatility than in previous cycles, expatriates can be more confident to buy at close to the bottom of the current cycle to benefit from potential long-term capital growth.” Plumb added that recent changes to visa laws will also likely increase demand for property across the country. “The case for purchasing properties is further strengthened by the attractive payment plans that are currently being offered by developers that are keen to dispose of unsold off plan units and the increased choice of low-to- mid market product available for sale,” he said.

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Source: Arabian Business

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SAUDI HIGH SPEED TRAIN ANNOUNCES LAUNCH DATE FOR PASSENGERS Sunday, September 30, 2018 The 450 km Haramain rail line connects Makkah, Jeddah, King Abdulaziz International Airport, King Abdullah Economic City in Rabigh and Madinah. The first Haramain High Speed Railway journey will operate on October 4, according to Makkah’s local authority. The new high speed train, which will operate between Makkah and Madinah, will initially run eight times a day, before increasing to 12 journeys in the new year. Running every hour, the trains will operate on Thursdays, Fridays, Saturdays, and Sundays. The 450 km Haramain rail line connects Makkah, Jeddah, King Abdulaziz International Airport, King Abdullah Economic City in Rabigh and Madinah. A consortium including 12 Spanish firms along with two Saudi firms has been tasked with building the second phase of the project. Source: Arabian Business Back to Index

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DUBAI REAL ESTATE SEES 9,500 FIRST-TIME BUYERS Sunday, September 30, 2018 Dubai pulled in nearly 9,500 first-time property investors in the period January to end August, resulting in transactions valued at more than Dh19 billion. “Dubai’s real estate market acquired a sustainable reputation due to a range of initiatives and proactive solutions that have made it the world’s most attractive investment destination,” said Sultan Butti bin Mejren, Director General of Dubai Land Department. “Our smart solutions played a key role in consolidating Dubai’s position as a preferred investment destination that provides a legislation system that protects investors’ rights.” Source: Gulf News Back to Index

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SAUDI ARABIA EXPECTS TO BOOST STATE SPENDING 7% NEXT YEAR Sunday, September 30, 2018 Saudi Arabia’s government aims to increase spending by over 7 per cent next year in an effort to boost sluggish economic growth, while continuing to cut its budget deficit gradually, finance ministry figures released on Sunday showed. The ministry forecast state spending would climb to 1.106 trillion riyals (Dh1.08 trillion) in 2019 from its latest estimate for 2018 of 1.030 trillion riyals. But it also projected a jump in revenues to 978 billion riyals, up 11 per cent from 2018. That would leave a deficit of 128 billion riyals or 4.1 per cent of gross domestic product next year, compared to 148 billion riyals and 5.0 per cent this year. Finance Minister Mohammed Al Jadaan said spending in 2019 would focus on growth and creating jobs. The government will soon announce policies to support the private sector in areas such as industry and tourism, he said without elaborating. But Riyadh will also press ahead with a drive to eliminate the deficit entirely, he told a briefing on the 2019 budget ahead of its expected release in December. The budget “is yet another step in cutting deficits gradually in the medium term, until we rebalance the budget entirely by 2023,” Jadaan said. The pre-budget briefing was the first ever held by the finance ministry, and was intended to make Saudi fiscal policy more transparent, officials said. In line with longstanding Saudi policy, Jadaan declined to reveal the oil price assumed in the budget forecasts. A ministry statement said non-oil revenues were increasing because of steps such as subsidy reductions and higher levies on foreign workers. However, a recent surge in oil prices may also be causing Riyadh to raise its revenue forecasts; Brent crude has surged to a four-year high above $82 a barrel from around $65 at the end of last year. The ministry released medium-term forecasts which showed a slight rise in the deficit to 138 billion riyals or 4.2 per cent of GDP in 2020, followed by a drop to 125 billion riyals or 3.7 per cent in 2021. Saudi Arabia’s public debt has been increasing rapidly in the last few years as it finances budget deficits, but Jadaan said it would remain under a previously announced ceiling of 30 percent for the foreseeable future. At 20 per cent of GDP in 2018, the ratio will edge up to 22 per cent next year, 23 per cent in 2020 and 25 per cent in 2021, he predicted. The projections are based on conservative forecasts for economic growth; GDP is expected to expand 2.1 per cent in 2018, 2.3 per cent in 2019, 2.2 per cent in 2020 and 2.4 per cent in 2021, the finance ministry statement showed. Fact Box . 1.106tr - 2019 state spending, in riyals, up from 1.030tr riyals in 2018

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. 978b - jump in government revenues, in riyals, up 11% over 2018 figures

. 4.1% - projected deficit as a measure of GDP, down from 5.1% this year Source: Gulf News Back to Index

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A COMPELLING CASE TO INVEST IN DUBAI REALTY REMAINS Sunday, September 30, 2018 I was pleased, not surprised, when I skimmed through the latest JLL’s Global Real Estate Transparency Index, which indicates that Dubai has not just retained its position as the most transparent real estate market in the region, but moved up eight places. Pleased, because it’s great news for the emirate and our real estate sector; not surprised because reaching new heights has been the natural order of business for this visionary city since its very inception. Getting better at things is just what we do. Today, Dubai’s real estate market is highly evolved, offering a slew of high return on investment (ROI) opportunities to investors. In the first eight months of 2018, Dubai Land Department noted the addition of 14,000 properties to the market. Dubai has proven effective in the use of the private sector in gauging aggregate demand. Gulf News The sector has matured over time, learning from the highs and lows, and constantly innovating, to create properties unlike anywhere else in the world; and recent trends support this notion. In the first eight months of 2018, Dubai Land Department noted the addition of 14,000 properties to the market. That is a lot of new homes, yet experts believe that this is not enough to accommodate the city’s rapidly growing populations and feed the appetite of international investors. We agree. Propelled by key decisions by the country’s leaders and a host of new offerings by developers, we are going to see a rise in interest and a growth in the flow of foreign investment in Dubai. Let’s look at some of the factors that are making Dubai’s real estate market, so much more attractive to the global investor. Leaders lead the way First and foremost, key initiatives by the UAE’s government have given the right nudge to those with their eyes on Dubai for investment. Initiatives, such as the waiving of the Land Department’s 4 per cent late payment fees on property registration — and the decision to allow 100 per cent foreign ownership in businesses outside the free zones are sure to attract more investors. Another landmark decision, to introduce long-term visas for investors, is proving to be beneficial for the residential segment. With the new visa rule, long-term residents would be more willing to become homeowners. These initiatives are sure to have a shot- to mid-term transformative impact on the sector, leading greater growth. The technology impetus

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Dubai is rapidly transforming as a global innovation hub, the effects of which will be soon seen in the emirate’s real estate sector.

Aimed at bringing more transparency to the sector, Land Department recently announced the introduction of the ‘Real Estate Self Transaction’ (REST), a platform that enables people to conduct transactions with multiple parties from anywhere in the world. Eliminating the need for paper documentations, the new platform will offer complete management of real estate transactions. The Dubai Land Department recently announced the introduction of the ‘Real Estate Self Transaction’ (REST), a platform that enables people to conduct transactions with multiple parties from anywhere in the world. Gulf News Using this platform, property owners can buy, sell and even rent out their properties, with seamless access to services such as mortgages. The government is also working towards implementing blockchain in various aspects of the sector, which will further boost transparency and ease of doing business in the segment. By providing ease, access and transparency, the market will certainly drive foreign investment in the long term. The product and payoff While government initiatives and technology disruptions are instilling increased confidence in investors, developers in the region are delivering new concepts and innovative developments to seal the deal. This year so far, Dubai witnessed the completion of 47 projects, successfully delivered based on their set timelines. For investors, timely completion makes Dubai’s real estate sector a market that can be relied on. The list of completed projects also included Damac Heights, our luxury residential tower at the foot of Marina Promenade. While transparency, trust and investment options are great to lure investors, return on investment remains the decisive factor. When it comes to what they will get from investing in Dubai, the city promises safety, sun and strong profitability on investments, one of the highest in leading global markets. With a progressive, reform-oriented government, a transparent infrastructure, and attractive investment options, Dubai is all set to usher in a new era of foreign investments to its real estate landscape. Owing to the growing excitement in the investor community, we have high expectations from this year’s Cityscape Global conference. Our message to investors is simple — come to Dubai, it’ll be worth your while. Hussain Sajwani is chairman of Damac Properties. Source: Gulf News Back to Index

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CITYSCAPE GLOBAL TO TEST PROPERTY MARKET'S MOOD Sunday, September 30, 2018 Cityscape Global, the largest real estate exhibition and conference in the Middle East, is back for three days this week from October 2 to 4. It gathers all real estate stakeholders - developers, brokers, end-users, investors and suppliers - from the UAE as well as the wider region under one roof. As such, it acts as a barometer of the market sentiment. It was reported that over Dh870 million worth of on-site transactions were recorded during the three days of Cityscape Global in Dubai in September 2017. Analysts expect similar levels of interest this year as developers are increasingly becoming competitive in their product offerings. Apart from new launches, the event is likely to see a focus on ready properties, with developers trying to clear their inventories. "Cityscape is a seminal event in the Dubai real estate industry. In the run-up to Cityscape every year, there are launches that are announced, as well as a raft of measures that regulators and the government offer for investors and end-users alike. This year will be no different. From a sales perspective, it is likely that while there will be new launches, there will be a greater emphasis on ready properties and the incentives associated with it; and greater direction on where the industry is headed post 2020 and what the new initiatives will be vis-a-vis 'smart housing' and the like," says Hussain Alladin, head of IR and research at Global Capital Partners. The consultancy Core estimates that there is historically a 15 to 25 per cent spike in transaction volumes in the fourth and first quarters compared to second and third. "Many factors influence this trend, including new launches over Cityscape, deals from developers, seasonality and close of financial year for businesses/institutions/investors," says David Abood, partner at Core. As a meeting place for the realty sector, Cityscape sets the tone on what to expect for the coming couple of quarters. Says Atif Rahman, director and partner of Danube Properties: "It's a great meeting place of minds and we will interact with our suppliers as well. The exhibition is a barometer that reflects the market mood. At Cityscape, we will feel the market pulse when we talk to stakeholders and our partners." According to Sailesh Israni, managing director of Sun and Sand Developers: "It will help us meet prospective buyers and exchange notes with industry colleagues. We expect good synergies. We hope it will act as a catalyst for the next two quarters." With sales being allowed on the exhibition floor, developers and brokers agree that Cityscape generates a lot of new qualified leads, not only for the quarter but also for the whole year. Incentives such as waiver of Dubai Land Department fees, lower acquisition prices, special Cityscape discounts, post-handover payment plans and other attractive deals are expected to be given over the course of the exhibition to clear developer inventories. "The consumers are spoilt for choice with offers from all participating developers. It also helps to make an informed decision, after talking to so many developers that showcase their projects at the same venue," says Rahman.

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"It's like shopping, investors explore every opportunity and then choose. The customer is king nowadays, they're experienced enough to make decisions or book tentatively. The majority of enquiries convert to leads," observes

Wael Ezzeddine, managing director, Space & Place Real Estate. He adds: "Main developer promotions are directed to brokers as an incentive to prioritise their product." Whoever offers a good product, innovative payment plan, delivery and guaranteed return on investment is likely to resonate among buyers. For instance, Sun and Sand Developers is offering a unique 'exit option' for buyers at its new project, Suncity Homes in International City. "We want to ease the fears of first-time buyers. The exit option will allow buyers in genuine difficulty to make use of every cent paid towards their purchased unit through benefit options of either; (1) a rent-free plan for a maximum of three years, or (2) a cash-back plan from the rental income of the apartment," informs Israni. Exhibiting developers are likely to focus on project completions at Cityscape as leverage to launch new products. "We expect major UAE-based developers to launch new projects/phases while also exhibiting existing projects," says Core's Abood. "Every developer will be in a different cycle with their projects. Timely completion is important for a developer. Hence some may focus on delivery. Others who have no inventory will have to develop new projects," Israni concludes. Source: Khaleej Times Back to Index

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UAE CABINET APPROVES BIGGEST-EVER BUDGET OF DH180B Monday, October 01, 2018 The UAE Cabinet on Sunday approved a higher budget for 2019 as high oil prices are boosting revenues, allowing the government to increase spending on the well-being of citizens. The Cabinet approved a zero-deficit budget of Dh180 billion for the next three years and Dh60.3 billion for 2019 compared to Dh51.4 billion in the previous year, an increase of 17.3 per cent. "I have chaired today a Cabinet meeting, during which we approved the federal budget of Dh180 billion for the next three years," His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, tweeted. "Fifty-nine per cent of the budget will go to education and social development," he added. "Citizens are top priority, and we have allocated the largest part of the budget to ensure their prosperity, health, education and security," Sheikh Mohammed said.

The UAE has allocated 42.3 per cent of the budget for community development, 17 per cent for education and 7.3 per cent for healthcare. During the Cabinet meeting, a new federal law was adopted to regulate the space and advanced technology sectors in the UAE. "The goal is to open up the space sector to investment, research and partnership building. It was a coincidence to adopt a large federal budget with the new law for space sector. Both will take the Emirates to new heights," Sheikh Mohammed tweeted. "The budget announced [on Sunday] indicates expenditure of Dh60 billion per annum over the next three years. This represents circa 17 per cent increase over the 2018 budget of Dh51.4 billion. Higher oil revenues have enabled the government to increase spending which is very timely right now as some sort of increase in

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government spending is required to boost economic activity in the country," said Anita Yadav, head of Fixed Income Research at Emirates NBD.

"We are neither surprised to see the increase nor to see the sectors where bulk of the budget will be spent. The federal level budget generally focuses on country level funding of education, some roads and community development and this is what is being planned now as well," she said. Oil prices have been on the rise over the last few months, crossing $80 per barrel, resulting in increased revenues for the UAE government. Brent last traded at $82.73 per barrel on Friday. The average Brent and WTI crude oil price started the year at $69.08 and $63.7 per barrel in January, respectively. Monica Malik, chief economist at Abu Dhabi Commercial Bank, said the 2019 federal budget suggests an acceleration in projected spending to 17.3 per cent for 2019 from the 2018 budget, pointing to significantly more expansionary fiscal stance. "This indicates a shift to a markedly more supportive fiscal position, in line with recent packages to support growth at country-wide and emirate level. We also envisage an acceleration in consolidated government spending in 2019, which is central to our assumption of stronger real-non-oil GDP growth," Malik said in a statement to Khaleej Times. Atik Munshi, senior partner at Crowe UAE, said the UAE's zero-deficit budget for the next three years indicates that the government is confident and resources are sufficient. "The focus on social welfare particularly on education and healthcare will reap long term benefits. The rise in international oil prices will help the UAE as the Emirates is one of the few countries that has adopted technology very rapidly and the government budget, I hope, will also take into account the additional investment in the technology which will catapult UAE to the next level," Munshi said. He hoped that the budget will also boost market sentiment. Suresh Kumar, president of the Indian Business and Professional Council of Dubai, said the federal government is setting the pace for economic growth in the years ahead by declaring that the three years budget will be "balanced", underscores stability and consistency in approach. Kumar stated that higher allocation for socio-economic sectors such as education, healthcare and community development augur well for its citizens and such growth plans and capital expenditure create sustainable assets. "All in all, economy will get a fillip for positive momentum," Kumar said. Source: Khaleej Times Back to Index

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THESE WORKERS CAN GET 10-YEAR VISA IN UAE Sunday, September 30, 2018 New reforms such as 10-year visa, 100% foreign ownership of firms to help attract best talent, FDI. Technology entrepreneurs, influencers, high-end individual investors and specialists in certain fields such as science, space and medicine would be eligible for the 10-year visa slated to be implemented by the end of this year, say industry executives. The UAE government recently announced that it would issue 10-year visas for professionals and investors and will also allow 100 per cent foreign ownership in mainland companies as part of reforms to attract the best talent available in the world and also to lure foreign direct investment into the country. It is expected that the new reforms will be focused on those professions and industries that meet the UAE's strategic needs.

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Speaking at a seminar recently, Dr Raed Safadi, chief economic adviser at the Department of Economic Development in Dubai, said the key criteria of this new law is to attract investors and would be very generous to bring in all kinds of talent as the emirate seeks a transition towards a knowledge-based economy. "We have to wait and see the specific directions as to what will include. But from what we have seen is that the initial wave will include technology entrepreneurs, influencers and high-end individual investors in certain areas that the country needs. I think it will not be a blanket for everyone to benefit from this system immediately. Maybe during the time, some new groups will be involved. But for now, I think technology entrepreneurs, influencers, high-tech investors and so on," said Dr Habib Al Mulla, executive chairman of Baker McKenzie Habib Al Mulla. Replying to a query about eligibility of doctors, engineers and architects to be part of the 10-year programme, Dr Al Mulla said he didn't expect all these categories will be eligible. "However, some specialists could be included in certain fields like medicine and so on but I don't think it will be overall for everyone," he added. On a question whether PhD degree holders will also be given 10-year visas, Dr Al Mulla hopes it will not be a requirement. "I think they are not looking for academic degree holders but those with some exceptional expertise that the country may need." Saad Maniar, senior partner at Crowe and vice-chairman of the members' advisory committee of the Association of Chartered Accountants in the UAE, believes chartered accountants, lawyers, doctors and scientists could potentially be included in the 10-year visa list. Moreover, professionals holding a master's degree or equivalent, a certain minimum salary bracket and certain designation - directors, etc - could also be considered, he added. Naveen Sharma, chairman of the Institute of Chartered Accountants of India - Dubai Chapter, claims that the exhaustive list is yet to be released but it seems like various categories such as scientists, investors, entrepreneurs, doctors, engineers and innovators will be covered under this rule. Sharma feels people with higher qualifications and having a master's degree, PhD, doctoral degree or any other reputed recognised degree in the profession approved under this criteria will be eligible for a 10-year visa. 100% ownership On the possible eligibility for 100 per cent ownership in the mainland, Dr Al Mulla pointed out that full details are still awaited. "But from what we have seen, the government is looking for global companies with global means like Google to start with. Those multinationals whose businesses are spread all over the continents. I think technology entrepreneurs, for example Tesla and so on, are the type of companies that will be part of 100 per cent foreign ownership. I think once they try it and see how it works, then they may start expanding it to other companies and industries. But to start with, it will be these multinationals." In addition to job creation and minimum investments, Dr Al Mulla says full ownership of a company in the mainland will possibly be linked to job creation for UAE nationals, too. "I think some of the job creations will also be linked to UAE national recruitment targets. So it is not enough you create jobs, but create jobs for UAE nationals. Minimum investment could also be another requirement to obtain full ownership licence in mainland. But they will be high threshold capital requirements to be able to avail exemptions," he added.

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Dr Safadi recently said there would be certain requirements such as minimum investment and a number of job creation for the eligibility of 100 per cent foreign ownership.

Maniar believes that 100 per cent ownership will be allowed only to companies from certain sectors such as healthcare and technology, with more than Dh1 million investment. Additional requirements could be employing over five employees with a certain salary threshold, recruiting a certain percentage of UAE nationals and contributing a certain percentage towards corporate social responsibility after certain a level of profits. Sharma said currently, a foreign investor can own 100 per cent of a business only in a free zone and not in the mainland. But as per the new announcement, foreigners will soon be able to own 100 per cent of the business outside free zones. As of now, detailed rules and regulations are not out but in order to obtain full ownership of a business in mainland, Sharma feels an investor will be required to invest over Dh1 million to be eligible. "This is a welcome move for the UAE economy and it will surely help the economy to move in the right direction. It will not only attract foreign investors but it will also boost the economy. Creation of new jobs, ease in international trade, boost in property market, etc, are some of the advantages among many other advantages from foreign investment," he added. "People with a 10-year visa will have more sense of security about their future in the country. This can play a very big factor in boosting the property market in the UAE." Source: Khaleej Times Back to Index

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10 NEW COMMUNITY SCHOOLS TO COME UP IN ABU DHABI Monday, October 01, 2018 Ten new community schools will be built in Abu Dhabi over the next two years as part of developing children's learning and behavioural skills, and promoting their leisure time activities, according to the Abu Dhabi Department of Education and Knowledge (Adek). Adek made the announcement on Sunday on the sidelines of the signing of the Memorandum of Understanding (MoU) with six government departments to expand the community schools project. The opening up of the new schools will bring the total number of community schools in the emirate to 30. The current phase of community schools covers 20 schools across Abu Dhabi, Al Ain and Al Dhafra regions, in which nine schools are located in Abu Dhabi, six in Al Dhafra Region and five in Al Ain region. All of these are equipped with top-notch resources, recreational equipment and facilities. The MoUs were signed between Adek and the department of health (DoH), department of urban planning and municipality, department of community development (DCD), Abu Dhabi Police, the Department of Culture and Tourism, and Special Olympics World Games Abu Dhabi 2019. The agreements are aimed at providing new programmes and activities to develop the community schools project and optimise the use of school infrastructures and facilities. Nasser Khamis, Adek's extra-curricular activities section manager, said five of the new schools will be opened in January 2019, and another five schools during the academic year 2019-2020. The schools will deliver services and programmes that include sports, social and cultural activities. "We are keen to study programmes and activities that benefit the community and meet their needs before opening any community school in an area," said Khamis. Dr Ali Al Nuaimi, Chairman of Adek, said that a steering committee, consisting of strategic stakeholders and chaired by Adek, will be formed to oversee and develop community schools strategy and action plans. "The community school activities and programmes help children develop their skills and capabilities and enable parents to follow up their children's progress. Community schools will develop programmes that support people of determination and talents in various fields," said Al Nuaimi. "We aim to turn community schools into cultural and social hubs as these schools help build healthier community ties through exploring and nurturing talents and promoting personal skills and family interaction." Dr Yousif Al Sheryani, Adek's undersecretary, said: "Today's MoUs provide new and exciting opportunities for students, teachers, parents and the community at large, who will not only become part of an intellectual social and cultural hub, but will also be given the opportunity to select activities and projects they are passionate about. The move will increase engagement amongst community members, while bridging the gap between entities, thus providing learning experiences that will further elevate the UAE's national identity, culture and heritage." Sheikh Abdulla bin Mohamed Al Hamed, chairman of the Department of Health (DoH), said: "The DoH is proud to work alongside Adek to leverage the vital role of schools as a key platform to raise awareness and educate students on the tenets of a healthy lifestyle."

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Source: Khaleej Times

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IMKAN PLANS DH15BN COASTAL ‘RIVIERA’ ON ABU DHABI-DUBAI BORDER Monday, October 01, 2018 Abu Dhabi real estate developer Imkan plans to build a Dh15 billion ‘riviera’ project located on a stretch of coastline between the emirate and Dubai, targeting the nascent second-home investment market. The project, called Sahel Al Emarat, or ‘Riviera of the Emirates’, will occupy 370 hectares of land in Abu Dhabi’s Ghantoot nature reserve, close to the Dubai border. The first phase of 293 small, “ranch-like”, villas – called Al Jurf Gardens – will cost around Dh2bn to build and is scheduled to be completed by 2021. “The concept of buying a second home in the UAE does not really exist in the country yet we believe there is sizeable demand,” Walid El Hindi, chief executive of Imkan, a subsidiary of private equity investor Abu Dhabi Capital Group, told The National on Monday. “This is the first time someone is building a fully integrated leisure community where you can buy a holiday home to escape the city, and it will fill a niche in the market.” Two further phases are planned, including Jiwar Al Qasr in phase two – a museum created from the refurbishment of an existing palace on the site – and Marsa Al Jurf, a marina, canal, more residences and leisure facilities in phase three. There will also be a ‘fishermen’s village’ complete with narrow alleys and low-rise buildings. The project will place a strong emphasis on nature and seek to conserve the existing 100,000 trees, sea turtles and other wildlife at the Ghantoot reserve, creating a coastal “retreat” for UAE city dwellers similar to New York’s The Hamptons, Mr El Hindi said. Residential property values and rents in the UAE have declined in the wake of a three-year oil price slump. However, developers have resumed activity and launched several sizeable new schemes in the past year, buoyed by increased government spending and a resurgence of oil prices that breached $80 per barrel last month. Many new projects are seeking to drive tourism – either domestic or international – in line with government ambitions to increase the number of visitors to the UAE. Imkan has financing in place “for least 20 per cent of the project as required by UAE real estate law”, and Imkan has a “very good balance” of debt and equity across its project portfolio ranging from 30:70 debt to equity, to 40:60, the chief executive said. The tender for phase one will go out in the first quarter of 2019 and construction is expected to commence in the second quarter. Imkan is building four other projects in Abu Dhabi. Its most high-profile is the 18-hectare Makers District on Reem Island, which is intended to become a hub for creative businesses and workshops. The company plans to announce two further projects before the end of this year as it continues to ramp up its offering of “soulful” mixed-use communities, said Mr El Hindi. He declined to reveal additional details. In April, Jassim Alseddiqi, Imkan’s board member and chief executive of Abu Dhabi Financial Group, told The National Imkan has a 30 million square metre land bank to develop in the years to come. Imkan’s other schemes are the 46,000 square metre Sheikha Fatima Park, a public realm project under construction at present, and Nudra, a luxury development of 47 villas on Saadiyat Island, which broke ground earlier this year.

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It is in the schematic design phase of Ras Al Akhdar, a luxury hotel and residences unveiled at the Cityscape Global conference in Abu Dhabi in April. The project is designed by British architect Thomas Heatherwick, founder of London-based Heatherwick Studio, which is designing Singapore’s Changi Airport expansion, among other projects. The company’s pipeline also includes one scheme under construction in Egypt and two in Morocco, with the Cairo-based Alburuoj project scheduled for handover in the second quarter of 2019. Source: The National Back to Index

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HIGHER OIL PRICES AND INCREASED GOVERNMENT SPENDING PROMPT IMF TO RAISE UAE GROWTH OUTLOOK Monday, October 01, 2018 The International Monetary Fund raised its forecast for the UAE's economic growth this year and next on expectations that oil production and government spending will increase. The Gulf nation's economy is projected to expand 2.9 per cent this year and 3.7 per cent in 2019, Natalia Tamirisa, the IMF's UAE mission chief, said in a statement late on Sunday. "Given large fiscal buffers, ample spare capacity, and rising investment needs for Expo 2020, the government has appropriately switched to providing stimulus to the economy," said Ms Tamirisa. The UAE announced a series of new policies this year to spur economic growth and investment, including changes to the country’s sponsorship system and new regulations that permit companies to operate without a physical office. The measures follow from a three-year Dh50bn stimulus package for Abu Dhabi announced in June. The plan, called Ghadan 2021 (Tomorrow 2021), has 50 initiatives to stimulate investment and job creation. It aims to slash red tape for businesses and boost investor confidence in the emirate’s economy. "Front-loading stimulus measures and focusing them on productive spending, consistent with the Vision 2021 goals of diversifying the economy and raising productivity, would augment their impact on growth," Ms Tamirisa added. The comments followed an IMF staff mission to the UAE from September 16 to 30. In April, the IMF predicted that the Arab world's second-biggest economy would grow 2 per cent this year and 3 per cent in 2019. A rebound in oil prices to a four-year high has given the government more revenues to spend, prompting a stimulus package to bolster economic growth. Ahead of looming US sanctions against Iran, Opec's third largest producer, Brent crude oil prices rose to $83.27 a barrel on Monday. On Sunday, the UAE cabinet approved its largest federal budget ever, up by 17.3 per cent from last year. In mid-2018, global oil producers agreed to increase output, allowing the UAE to begin raising its production. The UAE's fiscal deficit is projected to turn into a surplus next year after remaining stable at 1.6 per cent of GDP this year, the IMF said. Its inflation rate is likely to reach 3.5 per cent this year because of the introduction of a 5 per cent VAT in January but is expected to ease going forward, the Washington-based lender said. In the medium term, with crude prices projected to soften, the IMF urged UAE authorities to return to gradual fiscal consolidation to help sustain its petro-revenues. "A return to the path of gradual fiscal consolidation would help save an adequate portion of the exhaustible oil income for future generations," Ms Tamirisa said. The country's plans to liberalise foreign investment, introduce long-term visas for professionals, and ease licensing requirements and business fees — once implemented — will be a "welcome step" in fostering the private sector, the IMF said. The Fund called on the UAE to undertake deeper and broader reforms to increase the role of the private sector in order to boost economic growth and job creation.

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Among the main reform priorities the Fund suggested privatising non-strategic government-related enterprises and improving financing to small and medium enterprises (SMEs).

"Developing domestic government debt markets would catalyse financial market development and expand sources of financing for SMEs," Ms Tamirisa said. “Tightening financial conditions and increased global and regional uncertainty call for continued vigilance in monitoring financial sector risks, including those from a prolonged downturn in real estate and concentrated loan portfolios." Source: The National Back to Index

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DUBAI INVESTMENTS SAYS FLAGSHIP MIRDIF HILLS PROJECT 50% COMPLETE Monday, October 01, 2018 Mirdif Hills is a mixed-use, residential, commercial, and retail development by DIRC and the only freehold development currently in Mirdif. Dubai Investments has announced that the construction of its $820 million Mirdif Hills project, being developed by its subsidiary Dubai Investments Real Estate Company (DIRC), is almost 50 percent complete. Construction on the project is progressing as scheduled with the completion of 54 percent of Janayen Avenue, 50 percent of Nasayem Avenue, and 12 percent of Multaqa Avenue, the developer said in a statement. Mirdif Hills is a mixed-use, residential, commercial, and retail development by DIRC and the only freehold development currently in Mirdif. The project is spread across 1 million square feet land and 4 million square feet of built up area. The project features a four-star hotel by Millennium Hotels & Resorts with 116 rooms, 128 serviced apartments, retail units, a 230-bed hospital, and around 1,500 apartments comprising a mix of studio, one-, two-, and three-bedroom apartments and duplexes. Sales for the project’s Nasayem Avenue was launched earlier this year with the cluster offering a mix of one, two- and three-bedroom apartments as well as three- and four-bedroom duplexes. Obaid Mohammed Al Salami, general manager of DIRC, said: “We are pleased to reveal that the construction of Mirdif Hills is progressing on schedule while adhering to the highest quality standards our residents and investors can expect. Mirdif Hills is a unique, well-equipped development in a strategic location that offers distinctive advantages in line with the needs and demands of the market.” The price of a one-bedroom unit at the development starts at AED999,000. Source: Arabian Business Back to Index

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HEART OF EUROPE DEVELOPER REVEALS FIRST HOTEL LAUNCH PLAN Monday, October 01, 2018 Portofino Hotel will have 489 Princess suites including the exclusive Villa Adriana on the top floor, named after the famous Roman Emperor. Kleindienst Group, the creator of The Heart of Europe, part of Dubai's The World, has revealed that it will launch its first hotel in the next 100 days. It will be located on Main Europe island and the Portofino Hotel is the first five-star, family-only hotel in the region. The Heart of Europe team is also planning on breaking the Dubai record for the fastest hotel to soft launch less than a year after first construction commenced, with the soft opening set for December, Hotelier Middle East reported on Monday. It said the Portofino Hotel will have 489 Princess suites including the exclusive Villa Adriana on the top floor, named after the famous Roman Emperor. The hotel will have a fully-serviced private marina and the whole front-of-house team will be Italian while the time zone and currency will be European, with visitors able to pay in Euros, it added. Portofino Hotel will have five swimming pools, including a large pool - designed especially for water sports and showcasing regular water ballet shows throughout the day. Entertainment will also include the Castello Theatre, with family shows, concerts and movie screenings. For dining, there will be a choice of four restaurants and six bars – all serving organic-only, Mediterranean-inspired food, which will be a key feature across all 13 hotel properties on The Heart of Europe. Josef Kleindienst, chairman of the Kleindienst Group said: “The soft launch of the exceptional Portofino Hotel at the end of this year marks an important and exhilarating stage in the construction of The Heart of Europe. "This is our first hotel and it demonstrates how we will cater for each visitor demographic tailoring the hotel and experience to their needs – family-only, 24/7 entertainment or romantic. It will all be curated for guests’ pleasure. At the Portofino Hotel, we look after families who will encounter no distraction from singles, couples or party- goers, offering a safe and luxurious haven for the perfect family holiday.” Kleindienst Group recently announced progress on The Heart of Europe with the completion of the first Sweden Beach Palace on Sweden Island. Source: Arabian Business Back to Index

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DUBAI'S UNION PROPERTIES SET TO UNVEIL $680M AVENUE DISTRICT Monday, October 01, 2018 Avenue District will span over two million sq ft, and will feature a mix of residential units, and the flagship One Avenue Mall. Union Properties will unveil Avenue District, a mixed-used urban lifestyle project that is part of its Dubai Motor City phase 2 development at Cityscape Global 2018. The developer said the AED2.5 billion ($680 million) flagship project is a "significant milestone", reflecting its promise of delivering best in class community living experiences. Ahmed Khouri, managing director of Union Properties, said: "We are committed to creating vibrant destinations, such as Avenue District, that feature the full spectrum of facilities with a focus on leisure and entertainment." Avenue District will span over two million sq ft, and will feature a mix of residential units, and the flagship One Avenue Mall. The lifestyle-focused retail venue spanning over one million sq ft, will boast a diverse F&B mix, along with entertainment and retail options. The first residential community in Avenue District, 313 Avenue, will comprise 67 studios, 156 one-bedroom apartments and 166 two-bedroom apartments. Avenue District will also be home to the 100,000 sq ft BMW and MINI showroom. Located within the Phase 2 expansion of Dubai Motor City, Avenue District will be bisected by Sheikh Mohammed Bin Zayed Road (E311) and Al Qudra Road that feeds onto Sheikh Zayed Road (E11) via Umm Suqeim Street, allowing ease of access to Dubai International Airport and Dubai Expo 2020. Motor City spans over 38 million square feet and is comprised of six districts, each encompassing a unique destination, such as Dubai Autodrome, One Avenue Mall, The Ribbon, UPTOWN and Green Community Motor City. In April, Union Properties announced the launch of Zawaya, a new mixed-use development in Dubai's Motor City. With the launch of Zawaya, Union Properties said it will be initiating the first phase of its new AED8 billion ($2.1 billion) masterplan for Motor City that was revealed earlier this year. Since its formation in 2007, Union Properties has delivered more than 10,000 residential, commercial and retail units in Dubai. Last month, Union Properties issued a statement denying any plans to merge with another developer in Dubai. In a statement, Union Properties referred to speculation “circulating in the media” saying that it is “not considering any merger.” Source: Arabian Business Back to Index

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DAMAC'S AYKON HOTELS TO BOAST ROBERTO CAVALLI INTERIORS Monday, October 01, 2018 Aykon Hotels by Damac Properties in Dubai will feature luxury interiors by Italian fashion house Roberto Cavalli. The news comes after DICO International, the investment arm of Damac Properties chairman and founder Hussain Sajwani, signed a hospitality partnership with the Roberto Cavalli Group. “We are thrilled to be bringing another first for today’s discerning global travellers and guests. Through the joyful spirit of the authentic Roberto Cavalli brand, we plan to meet market demands for familiar touch points, while offering guests distinctive experiences,” said Sajwani. The announcement coincides with Cityscape Global 2018, which is considered one of the world's largest exhibitions and conferences for property development, and takes place from October 2-4. Construction for the first Aykon Hotel will begin at the start of 2019 and is scheduled for completion by 2023. Situated within Al Sufooh in Dubai Marina, the 220-room tower and five star hotel will offer skyline Dubai views. It will also boast an infinity pool overlooking the Palm Jumeirah. “We look forward to working on the first Roberto Cavalli-branded hotel, alongside the real estate pioneer behind DAMAC Properties,” said Gian Giacomo Ferraris, CEO of Roberto Cavalli Group. The collaboration between Roberto Cavalli Group and Damac Properties is not the first of its kind. In 2017, the two joined forces to launch the world's first villas featuring Just Cavalli interiors. It marked Roberto Cavalli’s entry into the real estate industry. Source: Arabian Business Back to Index

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A NEW DAWN IN DUBAI REAL ESTATE Tuesday, October 02, 2018 The UAE has introduced new laws this year that effectively widen the range of possibilities for expatriates to be more deeply involved in the long-term economic growth of the country. Many of the policy changes mainly concern foreign business ownership, visa regulations and curbing the cost of living. In a country where 80 per cent of the population is made up of foreign residents from all over the world, the new regulations are viewed as crucial in efforts to tap further into the expat population’s massive investment potential across different industries. In the real estate sector, experts believe the new regulations are particularly effective in drawing more foreign direct investments. We look at the new laws and their impact on the real estate landscape. Foreign ownership The UAE Cabinet approved in May changes to foreign business ownership rules, which had previously restricted foreign businesses to designated free zones. Outside these zones, foreign establishments can only operate if they yield 51 per cent ownership of the company to a UAE partner. The new law, which is set to take effect later this year, would allow 100 per cent ownership of non-free zone businesses by foreign investors. “For a long time, partial ownership of 49 per cent has scared off prospective investors,” says Anna Skigin, CEO of Frank Porter. “If the law goes ahead, it will create more openness in the region and a huge surge in foreign investment. A more open and friendlier business environment will positively affect the real estate market — as the confidence in the region increases and more people will purchase properties to live in or for investment.” As Cityscape Global opens, foreign investors will find more incentives to commit to long-term real estate investments The UAE’s highly competitive real estate prices combined with the reinvigorating effect of the new law on businesses has already resulted in an uptick in transaction levels, according to Andrew Covill, director of Henry Wiltshire International. “The new initiatives, like the option to work from home, will encourage more people to start businesses without significant expense and bureaucracy, further incentivised by the news that they will be able to own 100 per cent of their company,” says Covill. “This, together with streamlining the development process and speeding up payments to contractors, will create jobs and growth and encourage people to remain in the UAE, which means more people to rent and buy property.” 10-year visa Along with the new business ownership regulations, the UAE Cabinet, chaired by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, also approved a new residency system that would grant 10-year residency visas to investors and certain professions. Students will also get a five-year visa, and the Cabinet is reviewing the possibility of extending their residency permit after graduation. This month the UAE Cabinet also approved a new law that would allow retirees over the age of 55 to avail of a longer residency visa that is renewable after five years. The law will take effect next year. “[The extended visa] will help boost the economy and property prices, which on price per square foot basis are clearly the lowest globally for a city that has a highly advanced and developed infrastructure and completely secure to live, work and visit,” says Kalpesh Sampat, managing partner of Gulf Sotheby’s International Realty.

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Sampat believes the visa rules will provide more certainty and stability from a mid to long-term perspective for expats and investors. However, while the Cabinet has issued certain criteria for retirees to avail of visa privileges, the other new visa regulations for investors and select professionals are still awaiting implementing rules. Sampat says it is important that real estate investment, especially cash-based investments, be covered in the new visa regulations. “In my humble opinion, a five- or 10-year visa for new buyers in ready properties, which are cash purchases and not mortgage purchases, should also be considered to be introduced from January 1, or even now,” says Sampat. “This can be considered for property purchases of a higher investment threshold of Dh3 million, or perhaps $1 million [Dh3.67 million] for five years, or Dh5 million to Dh10 million for 10 years, or similar thresholds.” The current two-year property-linked investor visa system is well-intended but does not lend itself to attract buyers, particularly investors who prefer a longer timeline for certainty and stability, says Sampat. “Under the present rule, anyone who buys ready property worth at least Dh1 million is eligible for a six-month residency or investor visa along with the immediate family members and renewable unconditionally,” he says. “For property over Dh1 million, a two-year visa is granted.” In comparison, a longer 10-year visa would be more attractive to investors as it gives them a long-term perspective when setting up start-ups, businesses or branches of their companies. For residents, the new regulations, including the five-year student visa, allows better planning around education and family. “Currently, we have prices close to the 2008-10 lows,” says Sampat, noting that the potential for appreciation is “at the very minimum” 25 per cent, 50 per cent and 75 per cent for an investment outlook of two to three years, five years and seven years respectively. “Moreover, the property market offers the best rental yield advantage compared to anywhere else in the world with 8-9 per cent on smaller ticket sizes and 6-7 per cent on mid to larger tickets.” Given the sizeable expat population, Skigin says most of the people coming to Dubai generally prefer to rent. The new residency rules would change that. “The 10-year visa would give people the reassurance needed to go ahead and invest in property,” says Skigin. “Confidence in the region will lead to growth in other sectors as well.” Furthermore, the new visa system could be a powerful tool in retaining much of the money that leaves the country towards the home countries of expat residents. “With the introduction of the 10-year visa, I believe a lot of that money will remain in the country as people will feel more secure to invest in the country where they are living, and this is positive for the UAE,” says Skigin. The student visas will also have a tangible impact on real estate with the expected rise in the UAE’s student population. “The education offering in the UAE is already a significant contributor to the real estate sector, attracting residents and students, as well as funds and other institutional investors,” says Alexis Waller, partner and head of real estate at Clyde & Co. “The new visa rules for students will in turn stimulate the owner-occupier market, with more residents seeking longer-term housing by purchasing their homes or renting for a longer term. “It is also a stimulus to the investment market with schools and universities providing positive returns on investment.” Mortgage law The mortgage caps currently in place have served an important purpose in preventing a spike in speculative buying. However, there is also clamour from the industry to revisit the stringent regulations. Covill believes that relaxing the mortgage caps will help address a pent-up demand from end users, especially at the upper end of the market, where the down payment is at least 35 per cent.

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The proposed Mortgage Law revealed by the Dubai Land Department (DLD) in April does not mention possible changes to the loan-to-value (LTV) ratio regulations, which currently limit off-plan mortgage to 50 per cent of the property value and 25-35 per cent for ready property. “It will be interesting to see if the new mortgage law proposed by the DLD gets implemented and in what form as details have not yet been revealed,” says Covill. “[Relaxing the mortgage cap] should, of course, be federal and not just for Dubai and be actioned by the UAE Central Bank. The initiative shown by the DLD though is positive, and I firmly believe that more flexibility in financing options is key to the healthy growth of the maturing real estate market in the UAE.” The proposed changes to Dubai’s mortgage regulations, however, is expected to have a big impact on foreign investors, corporates and real estate investment trusts (REITs), which have had limited exposure to the UAE market compared with other international markets. “Most of these entities would be investing in commercial properties, but they may look to take whole residential buildings that are being delivered, which would soak up some of the excess supply,” says Covill. “The yields available are attractive when compared to other worldwide options, and there is always strong rental demand in the emirates due to the transient workforce and the structure of some companies’ housing allowances that do not allow their employees to use the funds to pay down a mortgage, so they are forced to remain tenants.” Other incentives Dubai has also announced a number of policy changes that are viewed as measures to curb the rising cost of living and doing business, effectively enhancing the UAE’s appeal as a business and residential destination. The announcements include freezing government fees for three years, reducing the market fee from 5 per cent to 2.5 per cent, cutting down hotel sales fees from 10 per cent to 7 per cent, disallowing any school fee hike for one year and cutting charges levied on real estate and businesses. The DLD has also waived the 4 per cent penalty for late property registration. “All maturing economies have been through the process of refining and fine-tuning their policies, and how they manage these various factors that affect growth,” says Philip Sequeira, head of property regulatory at Hadef & Partners. “It’s pleasing to see the UAE government quite clearly has these issues at the forefront of its thinking.” Sequeira notes how the new regulations such as the reduced hotel sales fees are aligned with the goal of increasing traffic into the country. “We predict this initiative will encourage more spending from the residents on staycations, which will give a boost to the hotel industry in particular,” he says. By removing the late registration penalty, the government also showed that it is responsive to gaps in the market, says Riyaz Merchant, CEO of Realty Force. “The 4 per cent penalty was holding back buyers from registering,” he says. “The DLD also closed the loophole when it comes to property registrations on projects launched more recently. Now, the 4 per cent fee is incorporated right at the time of a buyer booking a unit. “The government has slashed the aviation fees, some municipality fees, frozen school fees and delayed fining developers for late registration of projects, all in all keeping in mind the current market scenario.” Source: Gulf News Back to Index

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WHAT A MILLION DOLLARS CAN BUY IN DUBAI Tuesday, October 02, 2018 Sanjay Chimnani, managing director of Raine&Horne Dubai - Island lifestyle I would invest my $1 million (Dh3.67 million) in the soon-to-be-delivered units in Bluewaters Island, taking into account the quality of the product, island lifestyle, limited supply, low-rise planning with good price and payment plan. The island will house Ain Dubai, which would make it one of the most sought-after attractions, similar to the London Eye. A two-bedroom unit here currently sells for about Dh3.3 million; with a three-year, post-handover payment plan and 4 per cent Dubai Land Department (DLD) waiver, this indeed looks like a desirable investment. The units will be great for end use and investment, wherein the option to operate it as a holiday home will help to partly pay the instalments. The size of a two-bedder in Bluewaters is perfect for self-use and short lets. Ranjeet Chavan, managing partner of Gulf Sotheby’s International Realty - Location with convenience Real estate is all about location. Here I mean convenience, which typically includes proximity to the central business district of any city, and amenities like schools, hospitals, banks, convenient stores, restaurants, airport and public transport. From Dubai’s perspective, Shaikh Zayed Road is its prime artery, so selecting a good location would mean being near it. Considering this the options would include investing my $1 million in Downtown Dubai, Business Bay or maybe even Mohammad Bin Rashid (MBR) City. From an apartment perspective I would choose Downtown or Business Bay, but if it’s a villa or a town house then it would be MBR City as this is the closest villa or town house freehold community to all the amenities listed above. A million US dollars would fetch me a nice three-bedroom apartment in Downtown today or a four- bedroom apartment in Business Bay or a good four-bedroom town house in MBR City. The selection between an apartment and a villa ultimately remains a very personal choice at the end of the day. Laura Victoria Adams, managing director of Carlton Real Estate - Off-plan plus ready units I would go for a selection of off-plan and ready income-generating properties, as a portfolio of properties in different areas gives a better success rate for benefiting from both appreciation and yields. I would buy a few studios or a one-bedroom apartment in a high demand rental area such as IMPZ or Jumeirah Village Circle (JVC). Both JVC and IMPZ are affordable areas for tenants. The units here are always in demand. In a high market, people move from Dubai Marina and Business Bay to these areas, and in a low market, people relocate from International City and as far as Sharjah to capture the cost-efficient rental prices. So I would go in for five properties, three ready and two off-plan. For ready it would be a studio and one-bedroom apartment in Dubai Sports City, around Dh370,000 and Dh590,000 respectively, and a furnished one-bedroom in Dubai Marina for Dh820,000. For off-plan, it would be a one-bedroom unit from one of the developments at Emaar’s beachfront project priced at around Dh1.3 million, suitable for short-term holiday lease, and a studio at JVC for Dh361,000.

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Mario Volpi, sales and leasing manager of Engel & Völkers Dubai

- Town house in Al Furjan For $1 million I would look at buying one of the freehold townhouses in Al Furjan, which is the only current villa community that is walking distance to the Metro (under construction). These two-storey, three-bedroom properties offer 3,242 sq ft of built-up area for approximate Dh3 million, bought on a five-year post move-in payment plan. If, however, the property is bought with cash or mortgage, a 15 per cent discount is offered leaving a residue of approximate Dh1.1 million. With this balance amount, I would invest in a one-bedroom apartment in a brand new tower in Dubai Marina and then put it on rent. Rajiv Ghanekar, senior real estate broker of Keller Williams Real Estate Dubai - Something unique I look for value and uniqueness in the property. I look for good-quality buildings, go for the most-preferred layouts or views and most in-demand units from a rental perspective. We are in a buyer’s market today, where we are spoilt with choices. My first choice would be two units of Springs town houses (two bedrooms plus study at Dh1.5 million approximately), preferably single row or backing onto a park. These are great for rentals, are always in demand, inexpensive to maintain and quick to offload. The second option would be two to three units of one-bedroom apartments spread over Dubai Marina, The Views (new Greens) and Downtown Dubai, with prices ranging from Dh1.2 million to Dh1.4 million. One-bedders are easy to rent and economical to maintain. Given that, these communities are fully developed, have good connectivity and are close to commercial zones. They attract quality tenants, who pay rents in one to two cheques. Deniz Zeybek, sales and marketing director of Fidu Properties - Cherry pick ready units I will definitely go for a ready property and cherry pick the best options available in the market. As an investor, I would invest in an area, which offers the highest returns on investment and long-term appreciation like Downtown or Dubai Marina. This certainly makes sense in the current real estate scenario in Dubai and can be leveraged adequately in view of the wide project mix on offer. From an end-user’s point of view, the preference would be to put my money in a project in a location that offers a complete community feel and is equipped with all the facilities and amenities like Emirates Living. Factors like parks, greenery and a quieter place away from the hustle and bustle of the city would be high on priority. Source: Gulf News Back to Index

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MEYDAN FLOATS A WATERFRONT PROJECT IN JEBEL ALI Tuesday, October 02, 2018 Jebel Ali will be the location for a new waterfront community in Dubai, styled along the lines of the famed Newport Beach in Orange County, Los Angeles. In keeping with the theme, “Marsa Meydan” will have waterfront villas with private pontoons and boat mooring spots, which the developer says is a “first for Dubai”.

Climate-controlled marina: Location map of Dubai new waterfront community, called "Marsa Meydan” on the shores of the Arabian Gulf and off the Shaikh Zayed Road which links Dubai and Abu Dhabi. It will feature waterfront villas, private pontoons and boat mooring spots, styled along the lines of the famed Newport Beach in Orange County, Los Angeles. “The lifestyle on offer is unparalleled; it will appeal to a wide spectrum of the UAE population with a conscious price positioning,” said Saeed Humaid Al Tayer, Chairman and CEO of Meydan City Corporation, the Marsa Meydan project developer.

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Cool air in the marina

“Innovation sits at the core of the project as we embrace new technologies which allow us to enjoy fresh cool air at any time of year, shading the marina and boardwalk.” Jebel Ali will be the location for a new waterfront community in Dubai, styled along the lines of the famed Newport Beach in Orange County, Los Angeles. In keeping with the theme, “Marsa Meydan” will have waterfront villas with private pontoons and boat mooring spots, which the developer says is a “first for Dubai”. A climate-controlled marina will act be the centre point to the development, and will have a shading device used to cover the marina during summer. This, the developer says, will make it a “suitable al fresco destination throughout the year”. A network of canals will be incorporated throughout the development, and there will also be four hotels. Meydan currently has a busy roster of mega projects, including MBR (Mohammad Bin Rashid) City and some of the elements within it such as the Meydan One Mall and its ski slope. Plus, it has a joint venture with Sobha on an upscale residential community within MBR City. Source: Gulf News Back to Index

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DUBAI 2.0: 10 WAYS TO PREPARE FOR THE FUTURE Tuesday, October 02, 2018 Dubai’s property development activities continue to reach new heights. Each year marks the opening of new residential, entertainment and business destinations. The emirate has transformed itself from a sleepy port city to a regional hub for international networks, commerce and an ever-growing real estate market. As one of the most profitable real estate markets in the world, the question must be asked, What is next for Dubai? In 2002, when foreigners were allowed to own freehold property, a stream of foreign investors lined up to buy property. And while international prospects are still lining up, it’s important that Dubai continues to reimagine the way it builds. Below is a list of growth engines, which will expediently help Dubai grow its real estate market. These engines are linked to the long-term socioeconomic role of the industry, which Dubai should strive to make more sustainable, resilient, affordable and equitable. 1. Long-term solutions The market needs end users and long-term investors, not speculators or short-term driven stakeholders. By providing long-term incentives with more security for buyers, including options for long-term residency visas, better construction quality and affordable financing, interest will continue to increase. By linking transfer fees to a holding period, we will encourage long-term holding; if investors hold for a longer time transfer fees should go down dramatically For example, by linking transfer fees to a holding period, we will encourage long-term holding; if investors hold for a longer time transfer fees should go down dramatically. Moreover, to drive the industry’s long-term competitiveness, the city needs to strengthen the tourism, trade and finance sectors as the main sustainable drivers for real estate demand. 2. Talent magnet The city needs a dedicated team working to attract talents and young entrepreneurs to grow the creative class of the city. This requires cutting unnecessary costs to run a small business and providing more affordable living options. 3. Quality of life Cities are complex and a multidisciplinary approach is critical to enrich and improve urban life. While Dubai has many integrated communities, more should be done to provide walkable and bicycle-friendly communities with integrated public transport. New economic investments should be considered, such as pension options for expats. 4. Urban planning rethinking Implement a centralised urban planning authority, which coordinates planning of different communities and embraces economic, social and environmental objectives. By having a comprehensive long-term master plan, more certainty will be provided to investors. Developers have an ethical responsibility to integrate a life cycle engineering approach, which obliges a sustainable approach to all resources and elements, including employee safety, transportation, neighbourhood restoration, transparency, etc. However, for this practice to come to

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fruition, affordable resources and solutions must be provided to local developers, such as financial incentives for integrating such practices.

5. Transparency and governance Strengthen transparency of data. For example, data on market performance, future supply, rentals and vacancy rates should be shared. Transparency by developers, brokers, owner associations and the government should be compulsory and strict compliance, risk management and anti-corruption policies should be mandatory. 6. Investor protection Dubai should consider providing more investor protection through stronger laws and regulations. Sales and purchase agreements should be drafted to reflect the interests of both investors and developers. Creating a government-backed yearly evaluation and public ranking of developers and other service providers based on their financial strength, compliance policies, sustainability practices and customer happiness would also ensure investors are making fully informed decisions. 7. Innovative products Dubai should continue to prioritise new, innovative real estate products and tools. In addition, real estate investment trusts and rent-to-own schemes are needed to continue to enable small investors and end users to have exposure to real estate. 8. Ease of doing business Dubai has become a leader in simplifying and digitalising government registration processes, but more can be done to provide one gate for investors, residents and visitors. Building on the Smart Dubai strategy, there should be better utilisation of technology, while opening up data for the private sector to innovate. 9. Cost competitiveness Economic consideration is critical for the sustainability of Dubai’s growth. The city needs to continually consider costs, making business and the cost of living affordable. Creating affordable housing, education, health care, shopping and business climate will continue to ensure that Dubai stays cost competitive. 10. Social sustainability The UAE is in the top 30 of the most recent World Happiness Report, and improving happiness as a key target over the next five years in the national agenda. In many urban developments in Dubai, new real estate and infrastructure are already beginning to reflect these objectives by helping people pursue livelihoods, increase income and care for their families. However, more should be done to integrate all residents, both expatriates and nationals, into socially sustainable communities. Mahmoud Al Burai is the vice-president of International Real Estate Federation — Arab Countries and founder of the Middle East Sustainable Development Institute. The views expressed here are his own. Source: Gulf News Back to Index

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SHARJAH FREEHOLD CAN EXPECT ANOTHER UPBEAT YEAR Tuesday, October 02, 2018 Getting late into the freehold game is working to Sharjah’s advantage. Developers there had a rollicking time with offplan sales last year and that momentum has continued through this year. “From a real estate investor standpoint, Sharjah was a bit of a forgotten city - but the piece of legislation that allowed all nationalities to buy (on freehold/long-term leasehold) has brought it into the spotlight,” said Ahmad Alkhoshaibi, CEO at Arada, developer of the Dh24 billion “Aljada” mixed-use community. “Because of that, I don’t see any slowing down in freehold sales happening this quarter or in the next year in Sharjah. In fact, more developers are likely to come in and offer freehold, and that would mark a significant lift in quality, urban planning standards, etc. So, those investors who were waiting to gauge how Sharjah real estate can perform will start coming in now.” And the pricing, of course, will be a factor. For the price-conscious investor, Sharjah is emerging as a happening place in terms of cost of entry and the future return on their investments. Throw into the mix better planned projects and quality of build, Sharjah can tick off quite a few boxes. At Aljada, Arada has sold about 1,450 apartments since September last year, with prices starting from Dh279,000 for a studio. In the next 12 months, the target is to add another 2,000 units to the sold list. (At Cityscape, it is releasing townhouses priced between Dh1.2 million to Dh1.6 million.) It’s not just the properties alone that are going to attract investors to Aljada. The project’s Central Hub - which will occupy 1.9 million square feet - is being designed by the late Zaha Hadid’s firm. The design has been done, with the exact centre of the 24 million square feet development to feature a 100-metre tall observation deck with a mix of F&B options. Surrounding the deck will be musical fountains and “bubbles”, which are essentially dedicated areas given over to extreme sports and virtual reality zones. “We are creating a new “downtown” for Sharjah city and the Central Hub is its entertainment destination,” said Alkhoshaibi. “Next month, we will be announcing an operator for the 11-screen multiplex, and who will be a new entrant to this market. “We had the first cranes installed on-site yesterday and some of the major tenders have already been awarded for the Central Hub. “In Q1-2019, the Zaha Hadid designed sales centre will open on site… and I would like to think it will be the first project of her firm to open in the UAE after the Abu Dhabi bridge.” Options open for plot sales at Aljada The developer of Aljada said it is still undecided about allowing plot sales to individual investors build their own residences. Such plot sales have proved particularly popular with freehold buyers in Sharjah, going by the experience at Tilal City, for instance. “We will decide at a later phase of Aljada - for now, we want to set the tone and rhythm for the design and specs of the overall project,” said Ahmad Alkhoshaibi of Arada, which will also be announcing its first project in Dubai some time next year. Land purchase for the Dubai venture is still in the negotiation stage.

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Source: Gulf News

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TIME TO RETHINK DUBAI'S MORTGAGE CAP Tuesday, October 02, 2018 Last month’s announcement on retirement visas was the latest in a raft of welcome measures taken by the UAE government in recent months that have helped bring greater certainty to residents and have bolstered confidence for buyers. But in a market facing head winds from rising interest rates, large-scale supply and a strengthening US dollar, the most positive step the government could take to stimulate demand would be to loosen the 25 per cent mortgage cap. The mortgage cap, which limits loan-to-value (LTV) rates for expats to 75 per cent, was introduced in 2013 as the government took steps to manage debt exposure and curtail the types of irresponsible lending that caused the financial crash of 2008. But the cap has had an overly repressive impact on the secondary market, pricing out many buyers, especially first-time buyers, while fuelling demand in the off-plan market where upfront costs are lower, typically 10 per cent. The 25 per cent deposit requirement has created an imbalance in the market with cash-rich buyers benefiting from lower demand from the average person, and it can be the cause for the over inflation of prices as buyers try to find creative ways to get around it. And while the cap is intended to protect banks against the inherent dangers of lending in an unstable market, the cap itself is a barrier to the sort of domestic end-user demand that creates market stability and maturity. End-user demand is on the increase and that is a great thing for a sustainable property market. First-time buyers and families are taking advantage of recent price falls and low interest rates to purchase a home and put down deeper roots in the emirates. This can be seen in the growth in mortgage loans, up 26 per cent year-on-year, and at Better Homes we are seeing an increasing trend of tenants looking to buy their own property. However, much of this potential demand is not being realised due to excessive deposit requirements. The average buyer needs a 25 per cent deposit plus 4 per cent for Dubai Land Department fees, and once you factor in commission and mortgage fees, the upfront costs rise to approximately 33 per cent, which is too high for many. According to Jonathan Mortgage, owner of Mena Mortgages, “The single biggest reason that expatriates do not buy property is due to the amount of deposit needed to secure the mortgage. We regularly meet potential buyers who could very easily service mortgage repayments, but they do not have the upfront funds to purchase a property, despite having very good amounts of savings.” And with high rental costs, many buyers, especially first- time buyers, become trapped in this situation. I welcome sensible controls on lending and I remember all too well the consequences of irresponsible lending on the global economy. I would recommend any loosening of mortgage rules be taken carefully and responsibly, but I would urge that the time is now right to review the current level of the cap as global financial institutions have developed more effective ways to ensure borrowers are able to afford repayments. There are 56,000 properties in the pipeline in Dubai by 2020 and a 10 per cent reduction in the deposit requirement for expats would open up home ownership to a huge number of people, who would be encouraged to buy a home and put down roots in the UAE. Richard Waind is director of Better Homes. The views expressed here are his own. Source: Gulf News Back to Index

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DISTRICT 2020: A PLACE TO CONNECT, CREATE AND INNOVATE Tuesday, October 02, 2018 As we develop the Expo 2020 Dubai site, we are at the same time building a city for the future — a global destination that will be largely repurposed to offer a new alternative for integrated living and working in Dubai South. That city is District 2020, a place to connect, create and innovate. District 2020 will be a powerful contributor to the national economy by supporting the UAE’s vision of fostering innovation and sustainable economic development. It will enable the growth of an innovation-driven ecosystem that bridges key industries, such as travel and tourism, construction and real estate, logistics and transport and education, with disruptive technologies that are the drivers of future progress. Designed with the future of business in mind, District 2020 aims to support long-term value creation and promote collaboration, innovation and cross-pollination of ideas between businesses of all sizes. We are embedding the latest smart infrastructure and technologies into the site to ensure a smooth visitor experience during the Expo and also to create a post-Expo urban experience as part of a smart, sustainable and connected city. By utilising the highly advanced and accessible infrastructure designed for the World Expo, the more than 2- million-sq-m city will also become home to those who want to be at the heart of modern living — a collaborative and dynamic environment. It will be a place to live where you work and work where you live. Well connected District 2020 will be one of the most connected places in the region. It will be easily accessible via land, sea and air, and will have the most advanced digital connectivity, allowing for the seamless movement of people, goods and ideas into, out of and around the destination. Equidistant from Dubai and Abu Dhabi, it is connected to four major UAE highways and is located only 20 minutes from Jebel Ali Port, the largest marine terminal in the Middle East. It is nearby Al Maktoum International Airport, which is set to become the largest in the world, and within 45 minutes of two additional international airports. The Route 2020 Dubai Metro link is being extended to the door of District 2020. Cutting-edge digital connectivity is being woven throughout the site’s infrastructure, utilising 5G technology within a high-speed, resilient network, providing high performance, scalability, flexibility and security. Multinational corporations are already taking note. Siemens and Accenture have committed to establishing global hubs in District 2020, with more to follow suit. Working at District 2020 will be inspiring and flexible, in tune with future expectations of both businesses and employees. Space options and designs, from hot desks to multibuilding campuses, will make this an ideal place for entrepreneurs, start-ups and long-established businesses. Cultural offering Our cultural offering at District 2020 will encourage social connection and engagement through unique visitor attractions as well as diverse retail, entertainment, lifestyle and food and beverage options.

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Iconic Expo 2020 structures will live on post 2021 as must-see attractions, entertainment platforms and community destinations, including the UAE National Pavilion and Al Wasl Plaza. The Sustainability Pavilion will become a children and science centre, continuing to educate and entertain young people for generations to come. We also recognise the ever-growing emphasis on health and fitness, so we have incorporated 10km of beautifully landscaped cycling tracks and parkland equivalent in size to six football pitches. In addition to the remarkable architecture the city will inherit from Expo, District 2020 will maintain its commitment to empowering children and the youth through social and cultural attractions, academic institutions and innovation platforms. Marjan Faraidooni is senior vice-president of legacy development and impact at Expo 2020 Dubai. The views expressed here are her own. Source: Gulf News Back to Index

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WHAT WILL 2020 BRING? Tuesday, October 02, 2018 In two years Expo 2020 Dubai will both amaze the world and leave an enduring impression for generations to come. Recent government initiatives, such as new visa rules, business incentives and other economy-boosting measures are likely to influence Dubai’s property market. Property Weekly asks top executives in the real estate market about their thoughts on 2020 and beyond. Simon Townsend, senior director and head of strategic advisory and consulting of CBRE Long-term residency Long-term residency visas should impact the residential market in the UAE positively, giving expats more security over their rights to remain in the country, which in turn could see increased sales volumes as confidence is restored. Additionally, the decision to grant expatriate retirees visas, which are valid for five years and are subject to extendibility, could further open the market to secondary and senior housing, ultimately increasing the demand for residential units. Strong supply The pipeline for the residential market remains strong with more than 100,000 new units currently under construction and due for completion between now and 2020. Select projects such as Nshama’s in Dubailand are marketed as affordable, while the majority of the upcoming supply remain weighted towards the mid to high-end category. While this could suggest that an affordable gap persists, a number of incentives are being offered to potential buyers. These include guaranteed periods of rental income as well as lower service charges. In terms of key geographical spread, Dubailand, Mohammad Bin Rashid City and Dubai Creek Harbour are absorbing the majority of upcoming stock. Job creation Generally, rental rates are seen as the barometer for actual residential demand. Although it is difficult to predict when this downturn cycle will pick up, it is fair to assume that as the gap between supply and demand narrows, rental prices will start registering growth. For that to occur, the government should continue to look at ways to stimulate the economy in order to create additional jobs, attracting more human capital, which in turn will increase the demand for residential space. Fred Durie, CEO of Nshama Thinking long term The issuance of long-term visas will definitely have a positive impact on the real estate market, as it enables residents to plan ahead and make viable investments that add to their quality of life. Investing in own homes is one of the priorities for residents, given the significant savings they can make by shifting away from a rental model. Affordability Demand for affordable and value housing will continue to spike in the coming years, especially with more middle- income professionals aspiring to move from a rental model to owning homes. With more young people joining the workforce, there will be greater demand for homes that can be effectively met through master-planned

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neighbourhoods such as Town Square Dubai that are not only affordable but also assure a high quality of life in a trendy community.

Robust rentals Rental value reflects market demand — and with the economy gaining traction, led by drivers such as the preparations for Expo 2020 Dubai, rentals will continue to be robust in sought-after neighbourhoods. Demand for property is linked no doubt to many factors, including the job market and the all-round performance of the economy. Today, with Dubai underlining its position as a global hub for tourism and leisure, the prospects for the property sector look robust. Abdulla Bin Sulayem, CEO of Seven Tides International Adding value In the real estate market, there remains plenty to be optimistic about. Dubai is expecting more than 25 million visitors by 2020, so it will be a busy two years, especially with the development of the Expo site, Dubai World Central and the Dubai South area, where innovative value-based market propositions will be key, such as guaranteed returns on developments aimed at investors and attractive payment plans, directed more towards end users. Recent economic and legislative reforms implemented by the government are also expected to attract more foreign investment, reduce the cost of doing business and stimulate economic growth. Moreover, flexible payment plans will continue to open the off-plan market, making this a popular proposition among investors and more attractive for many people when compared to more expensive, ready-to-move-in properties with less favourable payment plans. Even with the challenges of declines in rents and, of course, property prices over the last year, the market has matured and for this reason I am very optimistic that rental prices in Dubai will start to increase again looking towards 2020 and beyond. Job creation and security With the opening ceremony of the Expo 2020 now just over two years away, Dubai needs to focus on delivering more affordable housing in preparation for the influx of new residents, who will be arriving to take up jobs related to the exposition. Of the jobs created, a large number will be low to middle-income households, so we need to create more affordable housing to keep the workforce living in Dubai, rather than those residents looking to live in the surrounding emirates. Job security will always be essential to individuals who decide to reside in Dubai, and this definitely has an impact on the demand for property. If individuals are secure and happy in their jobs they are much more likely to stay for longer with their families. Robert Booth, managing director of Ellington Long-term residency Long-term residency has a positive effect on the market, as it tends to result in more stability and predictability. The UAE government is committed to stimulating the local economy and has been introducing measures, including the proposed long-term visas, with a view to encourage long-term investment in the region. Another recent example is the announcement to grant five-year residence visas for expats. Initiatives such as this catalyse the economy and housing market and will no doubt benefit property prices in the long run. Job security, among other factors such as the growth of the economy and the performance of core economic sectors such as trade, retail, hospitality and tourism, among others, is a key driver of demand. Secure jobs enable customers to make long-term investments, especially in property.

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Property trends

Affordable homes are needed to meet the growing demand from mid-income professionals and the youth entering the workforce. Typically, the property sector has focused on developing high-end and premium communities — a trend that is now changing with more affordable homes in the market. Rents are based on demand and supply, and with the economy gaining more traction, especially with the preparations for Expo 2020 Dubai, there will be an impact on rents. With more professionals taking residency, demand for homes will increase, especially in sought-after neighbourhoods. Diversity Dubai will soon welcome the world for Expo 2020, where people will be able to see what a beautiful place Dubai is to live and to work in. My hometown, Vancouver, had its Expo in 1986, and the benefits were seen for the next 20 years. Expo 2020 will put the city on a world stage, and the market will benefit from this activation for a considerable period of time with more than 25 million international visitors expected during the six-month period. Dubai’s property market is made up of a diverse investor base — Ellington alone has seen more than 80 nationalities invest in its properties. Our Belgravia I is home to over 40 different nationalities making the community one of the most diverse in Jumeirah Village Circle. We’ve also seen a significant rise in Chinese investors for our premium residences; they now form our top five customers by nationality. Source: Gulf News Back to Index

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UAE’S PROPERTY MARKET FOCUSES ON THE RIGHT NUMBERS Monday, October 01, 2018 Forget for a moment all the talk about market slowdowns and weak sentiments and focus on just two numbers. In the year to end August, Dubai pulled in 9,500 investors who were acquiring a property in the city for the very first time. Now, if these buyers hold on to their investments right through the payment period, they would have put in a combined Dh19 billion into the market, according to figures from Dubai Land Department. So, in a tight market, nearly 10,000 first-timers saw enough in Dubai to make a key investment decision. For Dubai’s developers, the challenge now and into next year is to find ways to attract more of such buyers. The tens of thousands of new homes being built and delivered will need these first-times as much as they do investors. More flexible residency visa programmes can also help. From tomorrow (October 2) to 4, they will have the Cityscape Global platform to pitch their offers. Already, there have been some moves by developers ahead of the actual opening — Union Properties announced a Dh2.5 billion “Avenue District” carved out of its Motor City master-development. A mix of residential and retail will take up much of the built space there, and includes a 100,000 square feet BMW and Mini showroom. And there’re other numbers property buyers in Dubai will come across — the 5 per cent and 10 per cent down payments. The developer Seven Tides is having a 5 per cent scheme for its recently launched Dh1.3 billion Se7en City project at JLT. This will be “followed by payments equal to 6 per cent of the cost price, to be paid every subsequent quarter, with a completion date of Q3-21,” said Abdullah Bin Sulayem, CEO. “We estimate that the studios should yield 12 per cent per annum.” (Studios start from Dh393,000 and one-bedroom apartments from Dh760,000.) For those investors thinking beyond apartments and villas, there are always the plots to go after. “Investors are attracted by plots now available for Dh325 per square feet compared with Dh700-Dh800 per square foot in 2007- 08,” said Firas Al Msaddi, CEO of fam Properties. “That means huge savings in outlay, and a properly planned development strategy can maximise the return on investment.” Even in the office space, there are opportunities even in the current challenging environment. The consultancy JLL in its latest report suggests that “The importance of promoting innovation and attracting more start-up businesses has now been recognised and is a key part of the government’s strategy for the next stage of Dubai’s economic development. “This is playing out in the real estate sector with the development of many new “flexible office” concepts aimed at promoting innovation and fostering the creation and growth of start-up businesses (including Fin Tech Hub, and the Innovation Hub in Tecom).” JLL estimates there are more than 50 flexible office projects, offering leases of less than one year and delivering around 62,000 square metres of space. “While this total has risen rapidly in recent years, it still comprises less than 0.7 per cent of the total office stock in Dubai, compared to between 3-5 per cent of the office inventory in London and other mature markets across Europe.”

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Each of emirates are doing their bit to keep the real estate sector ticking. The Sharjah Investment and Development Authority (Shurooq) is launching all-encompassing development and redesign of Khorfakkan Beach.

This will add to the “tourism appeal of Khorfakkan city and the east coast in general”, Shurooq said in a statement. According to Marwan Bin Jassim Al Sarkal, Executive Chairman of Shurooq, “This project is part of our comprehensive strategic plan to develop the Eastern region of Sharjah.” And Abu Dhabi is getting a Riviera, courtesy of Imkan, while Ras Al Khaimah hones its tourism potential through a cluster of islands and mangroves. Clearly, there is purpose behind the Emirates’ brick-and-mortar gameplan. High-fashion quotient Amid the many development strategies that make up Dubai’s real estate, there will always be space for fashion. DICO International, the investment arm of Damac Properties’ Chairman Hussain Sajwani, has entered a hospitality partnership with the Roberto Cavalli Group. This will see the first “Aykon Hotel with interior design by Roberto Cavalli” branded properties in Dubai. Source: Gulf News Back to Index

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THE RATE HIKE EFFECT ON REAL ESTATE Monday, October 01, 2018 Mortgage property purchases in the UAE have been affected by a rise in financing cost seen since the start of the year. But while property buyers have to bear the extra cost, real estate consultants do not consider the increase in interest rate a significant concern. Dhiren Gupta, managing director of 4C Mortgage Consultancy, says the interest rate is only one of the factors that influence the property market, but overall he does see it creating a significant impact. “If you look into the Dubai Land Department property transaction report, we see a month-on-month increase, so yes we anticipate a positive movement in property sales transaction despite the rate influence,” says Gupta. “Moreover, the attractive post-handover payment schemes from the developers have changed the market dynamics, enticing the end users and investors to opt for more cash deals.” Dubai’s attractive yields and value-for-money options are also helping ease the effects of higher interest rates, says Gupta. Moreover, he believes the rates remain reasonable to UAE homebuyers, as banks here maintain an attractive base rate to curtail the cost of borrowing. Competition The high level of competition among banks is also keeping rates in check. “Banks are applying different strategies to lure the customers,” says Rohit Garg, head of business banking, foreign exchange and mortgages at Mashreq Bank. “Some are offering very low spreads and keeping the rates variable for the tenure of the loan, others are offering fixed rates for an initial period of two to three years to counter the impending increases in rates. The rates still range from 3.75-4.5 per cent, thereby offering options for customers to choose from.” Garg says that purchase decisions are also heavily influenced by the cash flow situation of buyers. “Once all factors and the down payment are considered, the rate comes into play, and this is when banks are chosen,” says Garg. “Therefore, the effect of rates on property markets is tertiary or secondary at best.” Calculations Mortgage repayments are calculated on a monthly reducing balance basis and homebuyers need to understand that a major component of the instalment will go towards the interest, says Gupta. “Most banks offer a two- to three-year fixed rate and then implement the variable rate,” he says. “Hence, if you are still on a fixed rate plan, then currently you will not be affected. However, if your mortgage rate is on a variable rate, then probably you need to work with your bank or look for some affordable product.” With the dirham pegged to US dollar, any rate increase by the US Federal Reserve will have a direct impact on UAE lending rates. In June, key interest rates in the UAE increased by 25 basis point following a decision by the US Federal Reserve to raise its benchmark lending rate. “With an increase in interest rate, auto loans, personal loans and mortgage lending rates would go up resulting in higher expenses,” says Rajiv Ghanekar, senior real estate broker of Keller Williams Real Estate. For a Dh1-million home loan taken for a tenor of 20 years, with a hike in interest rate from 3.99 per cent to 4.5 per cent (50 basis points), the extra monthly payout would be around Dh275 or Dh3,300 for 12 months says Ghanekar. “Based on the same numbers, over 20 years, with an increase in rate by just 50 basis points, your property would be dearer by roughly Dh66,000,” says Ghanekar.

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Investors using mortgage would initially become more cautious about the interest rates rising, but Ghanekar points out that for residential buyers the impact would be minimal, since they would be buying to live in the property and the current property prices are almost 30 per cent below their peak. Increase equity “The lending rates for off-plan projects are much higher in comparison to ready properties because the bank’s risk exposure is higher,” says Ghanekar. “An increase in lending rates would make off-plan borrowing more expensive. Therefore, if you have the funds that are currently yielding less than the mortgage rates, use them to pay off the balance payments to the developer. If you do not have them, then you do not have an option but to borrow at higher rates.” Ghanekar advises homebuyers to raise their equity and borrow less if they can. “Instead of borrowing the permitted 75 per cent loan-to-value ratio, borrow around 60-65 per cent,” he says. “Raising equity helps buy-to-let investors, too, as they would not fall under the negative zone, where monthly mortgage payouts are higher than the monthly rent, as this is never a good scenario. Buyers can further opt in for a reduced tenor if higher monthly payouts are manageable.” Source: Gulf News Back to Index

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GLOBALISING THE REIT Tuesday, October 02, 2018 Blockchain, one of the most disruptive forces to invade many an industry in recent years, is finding its way into more mainstream applications. The electronic ledger technology is particularly seeing practical use in real estate, where it can potentially change business practices; for instance, closing out deals, including the transfer of title deeds, may no longer require human intervention. A UAE-based entrepreneur is taking advantage of existing blockchain-powered applications such as cryptocurrencies to offer more relevant services to real estate investors. Ali Tumbi, whose business interests include the real estate firm Aqua Properties, has established a new company, Global REIT, the first blockchain- based Sharia-compliant real estate investment trust. By merging blockchain with REIT, the company says it is able to mitigate some of the risks of cryptocurrency by rooting its income in property and delivering more stable returns. Real-world peg “We saw a gap in the crypto market for an asset-backed token that provides steady returns,” says Tumbi. “We also saw a gap in the real estate market for a truly geographically diversified REIT product, something that is only possible with blockchain. “In the crypto world, daily swings of 10 per cent are a norm. So in a portfolio of Dh100,000 or Dh1 million, it’s important to diversify and peg back to the real world. You need an option that will offer stable returns and isn’t going to swing every day.” Global REIT has raised around $14 million (Dh51 million) from a recent initial coin offering. The company says it will invest in the Middle East and other lucrative markets such as the UK. While the REIT model is already well established internationally, with a combined global market capitalisation of more than $1 trillion, the company points out that traditional REIT offerings are also hindered by regulatory jurisdictional dependence, financial barriers to investment and distributional and legislative processes. Hhedging the geographical risk “By offering cryptocurrency instead of shares, Global REIT can acquire properties in any jurisdiction, thus hedging the geographical risk for their investors,” the company says. “With a minimum investment of $100, Global REIT is enabling more potential investors to benefit from investing in real estate, thus effectively opening up the market cap further.” Global REIT says it will invest in diverse asset types, including residential, hotels, shopping malls, commercial property, hospitals and warehouses, spread out geographically. The first asset acquired by the firm is a $75- million hotel, Mysk by Shaza, on the Palm Jumeirah. Fast facts What is Global REIT? Global REIT is blockchain-based REIT. It offers investors exposure to global real estate markets without the necessity of acquiring an entire property. By merging REIT with blockchain technology, Global REIT is able to solve some of the risks of cryptocurrency by rooting its income in the real world, thus offering investors stable income. Who’s the target market?

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This service is for crypto investors looking for stable dividends on a monthly basis and seeking to invest in real estate assets using cryptocurrencies. It also targets real estate asset holders looking to exit into a liquid market in the crypto domain. REITs can also use the platform to take advantage of an already established blockchain framework to enter the crypto domain. What type of assets will it invest in? Global REITwill invest in a diverse portfolio of types, class and geographical location of assets. This will include, but not be limited to, hotels, shopping malls, residential and commercial property, hospitals and warehouses. What type of returns can investors expect? Global REIT offers dual utility tokens – Grem and Gret in a 25-75 split. Globally tradable, Grem allows investors to partake directly in the Global REIT fund manager dividends, similar to traditional REITs. Fully tradable on all token exchange platforms, Gret unlocks rapid, simpler, cheaper and more secure trading than traditional REITs. Income of Grem token holders will initially start at 2 per cent of the asset under management and reduce by 0.25 per cent over the first three years, stabilising at 1.25 per cent thereon. Income of Gret token holders will be a stable 8 per cent per year on its first acquired asset. What’s the benefit of integrating REIT with blockchain? Global REIT works on the same mechanism as a traditional REIT, but with added benefits not offered by traditional REITs such as participation in the fund management income and monthly and instantaneous dividends. Source: Gulf News Back to Index

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BUILDING BOUTIQUE RESIDENCES IN DUBAI Tuesday, October 02, 2018 Built on the last available waterfront plot in Dubai Marina, LIV Residence is a contemporary apartment development that is set to be completed next year. The project promises a distinctly personalised experience for homebuyers looking to live in one of the most sought-after waterfront communities in Dubai. LIV Residence features studio, one-, two- and three-bedroom apartments and penthouses, offering a “boutique- style luxury” in Dubai Marina. LIV Developers director Ishan Khwaja and CEO Latif Habib tell us more about the project. Is everything going as scheduled? Khwaja: The project is on track. The structure of the building is nearing completion and will soon top out, and we have been simultaneously working on all other components, such as MEP, internal walls, exterior façade and finishes. You launched the project with prices around Dh1,550 per square foot. Has this got you a good response? Khwaja: There is always a market for quality and location. We took our time to find the right balance. We wanted to complement design with location, which meant carefully selecting a design team to materialise our concept, while doing justice to the last waterfront location in the heart of the Marina. Then, coming up with the right price was strategic. LIV is a contemporary, boutique-style luxury waterfront tower. We took a different approach in the market by pricing it at Dh1,550 per square foot compared to our competitors’ rates that range between Dh1,800 and Dh2,000 per square foot. The response has been positive and our typical buyer is someone who has been looking for this sort of a boutique-style luxury in Dubai Marina to call home. With over 75 per cent of units sold within the first few months of launch, clearly the market has responded well. Very special to us has been the word-of-mouth referrals; a large portion of our buyers were referred by either those who purchased property from us or brokers who realised the high value of this project. Tell us about the LIV homes. Habib: LIV instinctively attracts a wide range audience because of its location. The Dubai Marina is considered as one of the best locations in the city. The layouts and finishes of this project have been designed keeping space efficiency in mind, so that floor plans provide flexible options attractive to couples, families or even those looking for holiday homes. For example, our decision to add a maid’s room to a majority of our two-bedroom units, along with offering higher ceiling heights than other builders, has really made our clients realise that we as a developer are taking a different approach. We want to cater to those who appreciate detail, those who value maximum functionality without compromising the feel of luxury. This is what any Marina shopper wants. This sets us apart from our competitors. What perks are you offering?

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Habib: Our payment plan is 40 per cent during construction and 60 per cent on completion, which is expected in July 2019. The biggest perk we offer is that buyers don’t have to wait for three to four years before their handover, as with most off-plan properties. A buyer can book their favourite apartment today and move in mid 2019. The LIV Lounge was created to boost buyer experience? How have you achieved that? Habib: The customer journey at LIV Lounge has been an extraordinary experience for both our customers and for us getting to know them better; hence catering with a special, personalised service for their needs has really paid off. It has made the process of buying not only convenient but fun. Our show apartment in LIV Lounge is just steps away from the actual project site. It has added visual comfort and truly made decision-making easier. Buyers get to touch and feel interior finishings as well as explore floor plans and space planning through our state of the art visual app. What do buyers expect from developers in Dubai? Habib: Buying a home is a big decision. It’s important to have clear communication right from the beginning to bring comfort to a buyer and the entire buying experience. We take pride in servicing our clients with transparency that gains their trust. Our commitment with LIV Residence is to provide tangible results so that our buyers retain our trust. Source: Gulf News Back to Index

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IT’S TIME TO RAISE THE BAR EVEN HIGHER Tuesday, October 02, 2018 A journey that started in 1976 in Muscat, Sobha founder PNC Menon talks about business consolidation, his legacy and a single-minded focus to build a brand that delivers the highest level of design, workmanship and service. What kind of impact will the $4-billion (Dh15 billion) Sobha Hartland have on Mohammad Bin Rashid (MBR) City, among so many other projects taking shape there? The Sobha Hartland project was launched in mid-2014 and after four years I can confidently say that all the products launched in the community are on track with the completion and delivery schedule. As a company Sobha has all the key competencies and in-house resources to deliver a project from start to completion, ensuring timely delivery and unmatched quality. So far we have launched Hartland Greens apartment, Hartland Estates villas and town houses and Sobha Creek Vistas. The first set of handovers will commence shortly, which will set the benchmark for quality and these ultra-luxury products are available to investors and end users in the heart of Dubai. Sobha Hartland is the only fully sustained waterfront community on the Dubai Water Canal and located in the epicenter of Dubai. It boasts amenities like two top international schools, retail, hotels, community mall and other leisure activities all of which are very attractive to buyers. Surrounded by 2.4 million sq ft of green and open spaces and within a 3km radius to Dubai’s top attractions, our project has an edge over any other project in MBR City. Does the sluggish market worry you? Tell us about your plans to consolidate? Although markets have come down by 25 per cent to 30 per cent, the sector still has the potential to do sales worth Dh40 billion to Dh50 billion every year. And we foresee that number will grow by about 3-4 per cent every year considering the population growth. The Market maybe sluggish at present but I strongly believe that sound and established players will not be affected by such sentiments. Real estate business is cyclical. No one is able to say how long a cycle is going to last, or whether it is a positive or negative cycle. We expect that if not by the second half of this year, definitely by the first half of 2019 it should be back to normal. There has been a fall in prices but I feel that we’re reaching the bottom. Dubai is well located and well regulated, and property sales here are consistent. For the next 10 years at least, I think the market will be steady. Yes, we are currently in a state of consolidating our real estate business and we will definitely do an initial public offering. That’s the plan. But that’s post consolidation only, so that could be in a few years’ time as I am in no hurry. Sobha is undergoing a brand makeover. Why this sudden decision to overhaul the brand? We as a developer specialise in the mid to upper segment of the Dubai property market. We believe this sector alone accounts for around 25-30 per cent of the industry and we will be purely concentrating on this segment since there is a market for it. The biggest challenge for developers is to establish a consistent brand identity in a market that has 50 other players. With a legacy of 42 years in this region, it’s imperative that we strengthen our position as a serious player committed to delivering world-class products. At Sobha, we are bound by an extremely strong value system, which stems from our core strengths, decades of excellence and a never-ending quest for perfection. A deep and thorough introspection reveals that the brand Sobha is built on four key pillars: a legacy of craft, passion for perfection, complete control and uncompromising. It holds true in whatever we do — be they designing inspiring spaces, executing complex designs, finishing every

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square inch of space in a premise to perfection, hawk-eyed precision in quality control. The Sobha signature quality is a practice that has been perfected over decades.

Earlier this year you had forecast a “strong double digit growth” for the company in 2018. Now in the third quarter, what do you have to say? Overall market has dropped by 30 per cent but our performance has been consistent and in fact better than last year. Real estate is a cyclical business and every two to three years, the cycle changes. Dubai is an established real estate market. It has got a sustainable future for residential real estate and yes, things are moving as planned. We have already embarked on the consolidation exercise and plan to double our annual sales volume to Dh2.5 billion by mid 2020. Are you moving to smaller ticket-size units with Sobha Creek Vistas? What are your mid-market housing plans? Sobha Creek Vistas is our latest twin-tower apartment project. Its location is within Sobha Hartland and I will not call it budget, because it is high quality but it is the first project in Sobha Hartland with a small ticket size. Simultaneously, we are always looking at opportunities in other parts of Dubai. Once we have firmed up any talks we will be in a position to share further information. Do you see Dubai as your home ground? Dubai is a commercial capital for 3 billion people out of the Indian subcontinent, Africa and the Middle East. It is vibrant, well connected, safe and beautiful. I consider Dubai to be my home even though I have spent major part of my life in Oman and India. The vision of His Highness Shaikh Mohammad Bin Rashid Al Maktoum [UAE Vice- President and Prime Minister and Ruler of Dubai] is extraordinary and with so many new reforms being introduced, I don’t see any reason for anyone to not consider Dubai as their final home ground. You dropped out of college and headed to Muscat with 50 rupees in your pocket. Today your real estate empire extends from the GCC to India. What next? From designing palaces in the Gulf, winning contractual projects around the world, launch of Sobha India and launch of three major projects in the UAE, it has been an extraordinary journey which started in 1976 in Muscat, Oman. After four decades of experience, I can say that we are at present in a state of consolidating our existing real estate business, which will be done in the next one to two years. Post the consolidation, we will definitely be looking at real estate investments in other regions. How would you define your legacy? It’s now time to raise the bar even higher. Focusing on the belief that the three key elements that make a great home are great design, unmatched service and uncompromising quality, my legacy seeks to create sublime environments that would be home to the world’s most discerning. With a single-minded focus to build a brand that consistently delivers the highest level of design, workmanship and service, I pursue a vision to create the very best, for the very best. Source: Gulf News Back to Index

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CREATING AFFORDABLE LUXURY Tuesday, October 02, 2018 An established leader in affordable housing development, Danube Properties has built nearly 5,000 residential units targeting tenants looking to move into home ownership. The company’s aggressive push into the niche segment continued with the recent launch of Lawnz, a Dh550-million gated apartment complex in International City. In an interview with Property Weekly, Atif Rahman, director of the company, talks about the challenges and lessons learnt from this niche segment. Tell us about your project offerings in the affordable housing segment? What do you mean when you say ‘affordable luxury’? We have launched 4,744 residential units, including 171 town houses. Apart from the town houses, all our properties fall under the affordable luxury category. We have delivered 831 residential units, worth Dh1.12 billion so far, while two more projects with a development value of Dh570 million will be delivered this year. In terms of project delivery-to-launch ratio, we have one of the best records. By affordable luxury, we mean the project comes with all the facilities and amenities, including the final touch, of a luxury property, except the pricing and payment plan. Our industry-leading 1 per cent per month payment plan helps the end user to acquire properties without having to take out a loan. We have recently brought down the price of studio apartments from Dh300,000 to Dh290,000, again, a trend-setting price. How do you define affordable housing? Affordable is a very relative term. Something that is affordable to someone might not be affordable to others. However, there are certain norms followed in the global real estate industry. If the acquisition cost does not exceed 30-35 per cent of the household income, then that home could be affordable. Here’s an example: for a Dh290,000 studio apartment, the buyer pays 25 per cent of the property value as down payment over a year and pays a monthly instalment of Dh2,900 for 75 months. By the time the project is ready, the buyer actually pays 50 per cent of the value and can move in. About 85 per cent of our customers in all our projects are end users who really are in need of affordable property and an easy payment plan. We want to convert the people who have long-term plans to buy an apartment instead of renting it. Does this segment make good business sense when the land prices and other input costs remain high? Yes it does. In fact, it makes a very good business sense. It makes real estate and housing more sustainable and helps families who were priced out to acquire homes easily. Our biggest volume of customer are from the mid- income segment. Any lessons you might have learnt about developing affordable housing projects in Dubai that you want to share? Affordable housing makes real estate business more humane as it helps people buy their dream home. It helps tenants consider buying a home, even with limited means. Our biggest moment of happiness is when we hand over the keys to the smiling, happy customers. When they see a unique price and payment plan, beautiful amenities and livable and easy-to-maintain communities, which are better than they originally signed up for, it makes them very happy and it gives us immense satisfaction. Do you plan to launch any affordable project during Cityscape Global?

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We are working on a couple of projects we will launch when we get the necessary approvals and also when we are fully prepared. Regardless, watch out for a number of announcements at Cityscape Global.

Source: Gulf News Back to Index

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COMMITTED TO SHARJAH Tuesday, October 02, 2018 With the final instalment of the Sahara Complex fast nearing completion, developer Al Thuriah Properties has announced a new project that will rise in Sharjah’s Al Mamzar locality. The beachfront development is set to be formally launched at this week’s Cityscape Global, according to Georges Khouzami, operations and commercial manager of Al Thuriah Group. Much like the Sahara towers in Al Nahda, La Mer is positioned as an affordable luxury product, although this time the project is set to offer a waterfront lifestyle. “We have been working very keenly to launch La Mer as it embodies a great location, a higher standard of architecture and affordable prices,” Khouzami tells Property Weekly. Following the completion of Sahara Tower 4 last year, the developer is now working ahead of schedule on Sahara Tower 6, which will have 376 apartments spread across a 21-storey and a 39-storey tower. With the completion of Sahara 6, the 3.1-million-sq-ft Sahara Complex master development will have a total housing stock of 1,348 apartments. With 376 apartments spread across two buildings, Sahara Tower 6 is expected to be delivered ahead of schedule According to Khouzami, Sahara 6 is set to be completed much earlier than its projected delivery in December next year. He tells more about the company’s development plans and insights about Sharjah’s property market in an interview with Property Weekly. What will be your main activities at Cityscape Global? This year we will be launching our new beachfront tower, La Mer, located in Al Mamzar, Sharjah. What projects are you most proud of as a real estate company? Al Thuriah prides itself in servicing the full spectrum of real estate requirements, from development to construction, leasing and facilities management. We consider ourselves a one-stop shop for all property needs. We have been working very keenly to launch La Mer as it embodies a great location, a higher standard in architecture and affordable prices. Do you have plans to venture outside Sharjah? We have reviewed many opportunities outside the emirate, but we still have many projects in the pipeline for Sharjah. What’s the update on Sahara Tower 6? It is set to be delivered in December 2019, however, we are ahead of schedule and we could deliver earlier than the set deadline. What is the unique selling point of Sahara Complex as a community? Sahara Complex is located right at the beginning of Sharjah. It comprises six towers, each one with its own amenities. The apartments are more spacious than what’s in the market, with residences ranging from one- to four-bedroom apartments. Are these freehold properties? Yes, as per the rules and regulations of Sharjah.

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What is the proportion of investor and end-user buyers? Are there still available units for sale?

It is 50-50. We still have three-bedroom apartments in Sahara Tower 6. How is this development positioned in the market? Affordable luxury. How many people now live there? Around 1,000 families. Any further development plans for this community? Sahara 6 is the last development in Sahara Complex. How is the Sharjah property market affected by the increased supply in Dubai and availability of competitively priced residences there? We cannot deny the fact that the decreasing prices in Dubai have affected us, however, there are still many people who work in Dubai but prefer to live in Sharjah. Sharjah’s residential market has been historically linked to the rise and fall of Dubai’s property market. Do you think it will remain this way for a long time? With many developers having projects in Sharjah and the fact that Sharjah is set to have its own “image” linked to culture, family and tourism, we are confident that the market will have its independent demand. Apart from offering more competitively priced housing options, what do you think are the other advantages of Sharjah’s real estate market? Sharjah will always be a place for good investment in real estate, a family environment linked to culture and heritage. Source: Gulf News Back to Index

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A TALE OF 3 WOMEN: REAL ESTATE SUCCESS STORIES Tuesday, October 02, 2018 Linda Mahoney, founder of Better Homes “A small desk in my dining room.” It all began from my home, a small desk in the corner of my dining room, to be precise. I started with properties for rent in Jumeirah. In 1988 we expanded into a new office on Jumeirah Beach Road (picture below) and in 1992 Betterhomes launched its property management service. I have never felt any different as a woman working in real estate. There was never any gender bias and that rings true even today, especially at Betterhomes. We have a massively diverse workforce, with many senior positions being held by women, as they should be. Gender just doesn’t come into it, and I have always seen it as a business, the same as any other, with diversity, hard work and great service being the essential components above all else. I have always felt that women have a natural flair for this industry, and this just evolved and became better for women Back when I started Betterhomes, more women than men entered the real estate market, because the men were here on contracts, often in executive positions, and it opened doors for women to be able to work flexible hours and still have time for family. I have always felt that women have a natural flair for this industry, and this just evolved and became better for women, especially once the market involved sales and became more structured and mature. Our longest standing agents have been with me for over 20 years, and are both women. To me this speaks volumes about the industry’s need for women, and their longevity in real estate today. As with all successful businesses, it takes hard work, tenacity, and of course some luck too. We all know that markets are cyclic, and being here for the various peaks and valleys, gave us the opportunity to heavily invest in the business during the robust periods. Today our clients demand instant information, and everything has gone digital, so we have reinvented ourselves with comprehensive information at our fingertips. In the last eight to nine months, we have launched our new multi-faceted website and refreshed our brand. And of course, we’ve helped thousands of expats and long-term residents move into their dream homes. None of this could have been achieved without the dynamic and strong women behind the wheel at Betterhomes. It’s been a great journey so far. Elaine Jones, executive chairman and founder of Asteco “The villa lady.” I am the first to admit that my immense achievements in real estate are by opportunity, rather than design. Since my arrival in the UAE nearly 40 years ago, I have watched the UAE transform from a small trading hub to a prosperous and thriving nation. In 1980, Sheikh Zayed Road was two-lanes only, and the Dubai World Trade Centre had just been completed. None of the other iconic buildings that are synonymous with Dubai’s skyline had even been conceived.

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My journey began with taking a job at an international property services company in the UAE as the “villa lady” but I moved into the property management team soon after joining. Real estate was never really in the grand scheme of things, but when certain opportunities presented themselves, I took my chance and over 30 years down the line I can proudly say they’ve paid off. Being a woman in this market takes you through some steep learning curves. However with some hard work, confidence and determination, I really believe that women can flourish and thrive In 1985, I founded Asteco with the Bin Sulayem family with property management as its core business. With the right work ethic, attitude, keeping an open mind and support from my husband, I was able to grow and nurture my business. It was about carefully developing relationships right from the start, and servicing them with the same passion and rigor all along. The clients, that I started to work with in the early days, continue to be so 30 years down the line, and as their property portfolio has expanded it has in turn contributed to the growth of Asteco. Even though real estate is a highly competitive industry, it does not mean that a woman cannot succeed. On the contrary, the UAE is seeing a rapid increase in women in leadership positions. Being a woman in this market takes you through some steep learning curves. However with some hard work, confidence and determination, I really believe that women can flourish and thrive in any field they chose to make a name for themselves. Zarah Evans, managing partner of Exclusive Links Real Estate Brokers “Best is yet to be seen.” It’s a misconception that in the Middle East the female workforce have limited opportunities. I think it’s quite the contrary and this couldn’t be further from the truth. Real estate might be perceived as a man’s world, the typical grey suit negotiator briefcase in hand, forever hungry for the next deal. It’s a highly competitive industry but being a woman I have only been met with respect and inclusion. I do believe this has come from having confidence, passion and many long hours of hard work. Whether it’s managing a real estate transaction or a real estate business, it all about attention to detail, patience and care. These are traits naturally instinctive to most women. Our business is about people and their homes and females nurturing abilities are better suited to the emotional process of renting or buying. Whether it’s managing a real estate transaction or a real estate business, it all about attention to detail, patience and care. These are traits naturally instinctive to most women The UAE real estate market in particular is changing at a fast rate where adaptability is essential. We have seen a huge correction in both sale and rental prices over the last three to four years and I don’t see any immediate change in this. I would say prices are more where they need to be, and so now we need to work more on the expectations of sellers and buyers to try and close that gap. Dubai remains as exciting, ever changing and evolving as it was when I arrived here 20 years ago from Australia. Together with my business partner, Louise Heatley, we spearhead Exclusive Links, as two strong female market leaders. It is addictive and I believe the best is yet to be seen. Source: Gulf News Back to Index

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LA RIVIERA OPENS SHOW APARTMENTS Monday, October 01, 2018 Homebuyers and investors can now view show apartments for one- and two-bedroom units at the 22-storey La Riviera Apartments in Jumeirah Village Circle. Developer Riviera Group said the residential tower has 144 apartments featuring luxurious design and interior elements, including a 25ft-high grand entrance lobby with convenient car drop-off facility and hotel-style elevators. The building also has two retail units. Located on Street 2 Main Boulevard, La Riviera is close to amenities such as a medical facility, school, public transport, shopping centre and convenience store. It also has direct access to the main highway for added convenience. “La Riviera apartments are more than an investment, they are perfectly planned homes encouraging a calm and refined way of life,” the company said in a statement. “A typical floor contains seven St Tropez one-bedroom apartments and two Nice-inspired two-bedroom apartments. Each apartment is designed for elegance and convenience, with fixtures and finishing to the highest standard.” Amenities include al fresco dining, swimming pool, children’s pool, health club and separate steam rooms for men and women. Residents can also unwind in the Riviera Retreat lounge. “As an added incentive, the payment plan is perfect for first-time buyers,” the developer said. The one-bedroom apartments start from Dh689,000 and the two-bedroom apartments start from around Dh1.09 million. Source: Gulf News Back to Index

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A COMPELLING CASE TO INVEST IN DUBAI REALTY REMAINS Monday, October 01, 2018 I was pleased, not surprised, when I skimmed through the latest JLL’s Global Real Estate Transparency Index, which indicates that Dubai has not just retained its position as the most transparent real estate market in the region, but moved up eight places. Pleased, because it’s great news for the emirate and our real estate sector; not surprised because reaching new heights has been the natural order of business for this visionary city since its very inception. Getting better at things is just what we do. Today, Dubai’s real estate market is highly evolved, offering a slew of high return on investment (ROI) opportunities to investors. In the first eight months of 2018, Dubai Land Department noted the addition of 14,000 properties to the market. Dubai has proven effective in the use of the private sector in gauging aggregate demand. Gulf News The sector has matured over time, learning from the highs and lows, and constantly innovating, to create properties unlike anywhere else in the world; and recent trends support this notion. In the first eight months of 2018, Dubai Land Department noted the addition of 14,000 properties to the market. That is a lot of new homes, yet experts believe that this is not enough to accommodate the city’s rapidly growing populations and feed the appetite of international investors. We agree. Propelled by key decisions by the country’s leaders and a host of new offerings by developers, we are going to see a rise in interest and a growth in the flow of foreign investment in Dubai. Let’s look at some of the factors that are making Dubai’s real estate market, so much more attractive to the global investor. Leaders lead the way First and foremost, key initiatives by the UAE’s government have given the right nudge to those with their eyes on Dubai for investment. Initiatives, such as the waiving of the Land Department’s 4 per cent late payment fees on property registration — and the decision to allow 100 per cent foreign ownership in businesses outside the free zones are sure to attract more investors. Another landmark decision, to introduce long-term visas for investors, is proving to be beneficial for the residential segment. With the new visa rule, long-term residents would be more willing to become homeowners. These initiatives are sure to have a shot- to mid-term transformative impact on the sector, leading greater growth. The technology impetus

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Dubai is rapidly transforming as a global innovation hub, the effects of which will be soon seen in the emirate’s real estate sector.

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FINDING THE RIGHT TIME TO MAKE A PROPERTY EXIT IN DUBAI Tuesday, October 02, 2018 For property investors in Dubai, the million-dollar- (or dirham) question is when they should think of selling. Should they make an exit right now, given that some locations — the Downtown for instance — have started to see some stability? Or even seen gains, as is happening with villa prices on the Palm. The fact is price stability and gains have been limited to a handful of clusters. And not everyone can make the kind of gains someone did selling an Emirates Hills villa for Dh23.3 million in July after acquiring it for Dh18.92 million. And all this within seven months. But what of the rest who are thinking of an exit strategy? Property values in the city are down an average 20 per cent from their mid-2014 peaks. “One might sell it now to get investment released to avoid any foreseeable depreciation,” said Moe Abeidat, chief technology officer of Property Monitor, part of the Cavendish Maxwell consultancy. “At the same time anyone who has purchased a property Dubai three or four years ago to sell now will [have to] bear a significant loss. Instead, [they might be better off] retaining it as a long-term strategy.” A valid point — many sellers who managed to dispose off their properties recently have gotten nowhere near their asking prices. This is true at high-end locations, as well as in more mid-market surroundings. A property owner at International City sold his unit for Dh500,000 late last year... after buying at Dh490,000 and holding it for the better part of a decade. But if he sold now, he would have got about Dh400,000/Dh410,000. It’s the buyers who are spoilt for choice now. Studio unit prices start slightly below Dh300,000 for off-plan projects in International City, according to Cavendish Maxwell data, while a three-bed town house in Damac Hills can be had at “just shy of Dh1 million”. Still, there are investors wanting to sell now than hold on. And this is showing up in the secondary market listings. “MBR [Mohammad Bin Rashid] City is one of the examples which has many units available for sale in the secondary market below their original prices,” said Abeidat. “The Sidra and Maple [projects], in particular, are worth mentioning. “So, the decision to hold or sell ultimately depends on individual circumstances.” Of the newly developing areas, there is a lot of buzz around Dubai Creek Harbour, where the first handovers at the luxury towers will start some time early next year. “It is a location that has performed well despite an overall distress in the market,” said Abeidat. “New launches are still happening there and individual investors are holding their units to enjoy the gains expected once handovers start and [the] area shapes up.” More off-plan or not? That is the question... It’s not just property owners who are in a dilemma over whether they should hold back or sell now. Even developers are facing the same questions on what their off-plan strategy should be. More and more off-plan launches could create a situation where large numbers of units could remain unsold. That would put further pressure on developer costs and margins.

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But, to make matters worse, even delaying projects and sales launches might be tough. There are few private developers who can match the deeper pockets and resilience of master-developers.

“Margins are getting very thin and for developers to make a profit they have to sell off-plan,” said Firas Al Msaddi, CEO of fam Properties. “But the reality of the market gives them no option other than to hold back sales for now. And that can mean the death of their business — or secure finance, or some sort of funding, and develop to sell around completion, or even rent out until the market improves.” Source: Gulf News Back to Index

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‘READY’ HOMES TILT THE BALANCE IN DUBAI’S PROPERTY MARKET Monday, October 01, 2018 Dubai’s real estate market is getting set for the “ready” wave — and it will have a telling impact on the city’s residential rents and even on how developers price their off-plan launches. Between 15,000 to 20,000 new homes will get delivered in Dubai this year, and in locations such as Al Furjan, Jumeirah Village Circle and Sports City, the new additions are being backed up by some eye-catching incentives. 5% down At Al Furjan, for instance, Nakheel is offering a flat 5 per cent downpayment and which allows the owner to move in immediately. So, no waiting around to take possession. And the rest of the payments can be made over five years for the townhouses and seven on the villas. Nakheel has to date handed over 1,130 units out of 1,234 in total at Al Furjan. In Jumeirah Village Circle, private developers are lining up 5-10 per cent downpayment schemes and the rest to be paid in five years. Ditto at the Sports City. Rents in Sports City and JVC are down by 10-15 per cent on average since early 2017. A three-bedroom unit at both locations are in the range of Dh90,000-Dh100,000 a year. Each new property that gets added to these places keeps rental demands in check. Gulf News File Now what does this mean for the wider property market dynamics? Ready property purchases tend to be dominated by end-users, and who are then likely to move into their own homes rather than rent it out. This is exactly what is happening at these emerging residential areas of the city, and, to an extent, even in Business Bay. Pressure And that adds to the pressures on the rest of the rental marketplace. Rents in Sports City and JVC are down by 10-15 per cent on average since early 2017. A three-bedroom unit at both locations are in the range of Dh90,000-Dh100,000 a year. Each new property that gets added to these places keeps rental demands in check. “Rents are falling across the board and that is due to a number of reasons, one of them being the fact there are now generous incentives given on ready properties,” said Sameer Lakhani, Managing Director at Global Capital Partners. Nakheel is offering a flat 5 per cent downpayment at Al Furjan. This allows the owner to move in immediately. So, no waiting around to take possession. And the rest of the payments can be made over five years for the townhouses and seven on the villas. Nakheel has to date handed over 1,130 units out of 1,234 in total at Al Furjan. Gulf News “That has the impact of certain communities falling more than others in rents. But these are the communities that end-users find to be substitutes. End-users

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“Clearly, this is a trend that will accelerate for all kinds of reasons.”

That could also prompt more residents to make the switch to buying for their own use rather than remain as tenants. End-users — that’s what this market needs to see a lot more of, as Dubai’s developers and the authorities know only too well. According to Cluttons, the consultancy, this sentiment seems to be percolating down. Properties valued at Dh1.5 million and with mortgages on them are becoming a regular feature in transactions, alongside the multi-million dirham luxury homes Dubai is known for. “At this price point (of Dh1.5 million), one- and two-bedroom apartments in an established area are dominating most of the activity in the market,” said Richard Paul, Head of Professional Services for Cluttons M. E., in a recent statement. “This is also the case for prospective owner-occupiers who wish to cease paying rent. “If they have adequate equity, it makes sense for them to contemplate paying off their own mortgage and look at real estate as a mid- and long-term investment.” Tougher competition Developers with off-plan projects also need to watch the ready space. Because whatever incentive they can come up with, it can prove difficult to compete with someone offering a modest downpayment scheme on a ready-to-move into home. And it’s actually happening. “In areas where smaller developers are present in large numbers, they are offering discounts on off-plan in excess of 20 per cent over the prevailing value,” said Lakhani. “These include areas such as JVC, Sports City and Dubai Residential Complex in the mid-income space, and even at some of the Meydan projects and Dubai Hills in the upper income space.” Market is cooling off on off-plan incentives Five years? Ten? Last year’s off-plan sales sizzle was built on extended post-handover plans. Take possession and pay the rest over five to 10 years, that was how developers were catching the buyer’s eye. But the charm seems to be wearing off on such schemes. “Among the smaller developers in particular, there has reached a point whereby off-plan incentives simply are not feasible anymore,” said Sameer Lakhani at Global Capital Partners. “It is here that we are seeing lower prices being offered in lieu of extended payment plans, so that it attracts the price-conscious buyer.” Source: Gulf News Back to Index

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IMF: DUBAI SET FOR ROBUST GROWTH Monday, October 01, 2018 The IMF sees Dubai’s economy is set for a strong growth as the government accelerates spending in preparation for the Expo 2020. Dubai’s gross domestic product is set to expand 3.3 per cent this year and 4.1 per cent next year, Natalia Tamirisa, the IMF mission chief to the UAE, said. Dubai’s GDP grew 2.8 per cent last year, she said. “We see a similar pattern in Abu Dhabi,” Tamirisa said. The IMF expects Abu Dhabi’s non-oil economy to grow 2.3 per cent in 2018 and 3.6 per cent the following year, as the government ramps up spending. Commenting on Dubai government finances Tamirisa told Reuters that it is not a source of concern. The ratio of Dubai’s public debt to GDP is manageable at 30 per cent, not high by international standards, and is expected to rise only moderately in the next couple of years as Dubai prepares to host the Expo 2020, she said. Source: Gulf News Back to Index

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BLOCKCHAIN GAINING TRACTION Tuesday, October 02, 2018 Dubai's drive to become a global blockchain technology hub has been backed to transform the UAE real estate industry by leading developers behind more than 200 combined projects in different stages of development. Master developers Azizi Developments and IMKAN Properties are among the major forces in the property market putting a spotlight on the Dubai Blockchain Strategy as a revolutionary initiative in the countdown to next month's Cityscape Global real estate showcase, proving that the technology is poised to have a significant impact on the real estate sector. Stemming from the government's overarching goals, the Dubai Land Department (DLD) has taken steps to implement a Blockchain network to interface with all digital and manual process for the real estate industry, a move welcomed by developers. By introducing a shared network for all stakeholders, eliminating paper documents and introducing digitally signed contracts, the DLD aims to improve, secure and simplify property transactions. "Blockchain is without a doubt one of the most significant technologies to impact the real estate industry," said Tom Rhodes, Exhibition Director at Cityscape Global. "The technology will drive an era of 'smart contracts' due to its ability to create, authenticate and audit contracts in real-time, across the world. "We're seeing a rise in local developers who are thinking innovatively and strategically about this new technology, and this will only be amplified due to the acceptance of innovation by the Dubai government and a relatively youthful market." Currently managing projects worth more than Dh45 billion across Dubai, Azizi Developments is currently studying ways to introduce Blockchain technology into its business. "Dubai Government has elaborate plans to use Blockchain across the board, from parking tickets to land/ title deeds," said Seda Tutu, Deputy CEO Sales & Marketing at Azizi Developments. The Dubai-based company will be one of many exploring the impact of technology at Cityscape Global, the three- day real estate and investment exhibition which takes place at Dubai World Trade Centre from October 2-4. "Given the country's commitment to smart city initiatives, the incorporation of Blockchain is only a matter of time. The use of Blockchain technology will facilitate exchanges between investors, buyers, and developers, reducing required time, cost, and efforts." Another developer currently investigating means to capitalise on Blockchain technology, Abu Dhabi based IMKAN Properties, will give a Cityscape Global launch to a new destination, along Sahel Al Emarat, a pristine coastline between the capital and Dubai. "The real estate industry is experiencing rapid disruption by technologies such as Blockchain, drones and augmented reality, which are game-changers in that they cut costs, expand the potential audience and provide for novel experiences," said Tarek Coury, IMKAN's Research Director. "Blockchain promises to revolutionise key aspects of the real estate value chain, and our research team is examining the technology's potential in the context of facilitating transactions for our audience around the globe." Highlighting the finer details of Blockchain technology in the real estate industry, the Cityscape Global Conference will host the panel discussion: 'How will the disruptive technology of Blockchain transform the industry?' aimed at analysing the impact, risks and challenges Blockchain will bring.

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Taking place at the InterContinental Festival City on October 1, the discussion will bring together experts from IBM, Altus Group, dubizzle and Emirates Real Estate Solutions, sharing their insights on the disruptive technology and its effect over the next 10 years. Cityscape Global returns with support from Foundation Partners: Dubai Holding and Nakheel; Platinum Sponsors: Al Marjan Island and Eltizam Asset Management; Silver Partners: Noyanlar and Tamleek Real Estate; and Strategic Partner: Dubai Land Department. Source: Khaleej Times Back to Index

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TO BUY OR RENT PROPERTY Tuesday, October 02, 2018 Top real estate analysts weigh in on the debate to buy or rent property in Dubai for expatriates, identifying the ideal price point in the market which offer the best long-term returns. According to Cluttons Middle East, market activity in the studio, one, two and three-bedroom apartments, valued at a price point below Dh1.5 million, is the most active segment. In their opinion, it currently makes more financial sense for hopeful end-users who wish to offset the cost of rent to buy at these levels. Richard Paul, Head of Professional Services for Cluttons Middle East, said: "At this price point one and two bedroom apartments in an established area are dominating most of the activity in the market. "This is also the case for prospective owner-occupiers who wish to cease paying rent. It does depend on where the individual sits financially, but if they have adequate equity, it makes sense for them to contemplate paying off their own mortgage and look at real estate as a mid and long-term investment." Cluttons said their advice could also be applied to expatriate families looking to break even on rent and invest in multiple assets in Dubai. "For a family that has money to invest, we would also advise sticking below Dh1.5 million price point, which represents the most stable market segment currently," added Paul. "At this price point, even if the decision is to lease the property investment out, post-acquisition, a purchaser should expect a 7-9 per cent gross yield in some areas and subsequently after interest payment, service charges and upkeep, there is still good profit rent to be achieved." Research from JLL suggests that while residential prices in Dubai have fallen around 20 per cent since the last market peak (in October 2014), the market is now approaching the bottom of its cycle, with only limited further declines expected over the next year. Prices and rents are both expected to soften further in the short term, but a solid case can be made for long-term expatriates to purchase property rather than continuing to rent. Craig Plumb, Head of Research at JLL MENA, said: "The majority of expatriates in the UAE have traditionally sought to rent rather than purchase properties. As the market has become more mature (with less price volatility than in previous cycles), expatriates can be more confident to buy at close to the bottom of the current cycle to benefit from potential long-term capital growth. Recent changes to Visa laws (allowing 10-year residency for certain groups of expatriates is also likely to increase demand to purchase property in the UAE for their own occupation. "The case for purchasing properties is further strengthened by the attractive payment plans that are currently being offered by developers that are keen to dispose of unsold off-plan units and the increased choice of low-to- mid market product available for sale." Source: Khaleej Times Back to Index

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MILLENNIUM BINGHATTI RESIDENCES TO BE SHOWCASED AT CITYSCAPE GLOBAL Monday, October 01, 2018 Dubai-based Binghatti Developers and Millennium Hotels and Resorts will showcase Millennium Binghatti Residences during the Cityscape Global 2018 exhibition. Boasting an impressive waterfront location within the canal skyline of the thriving Business Bay community or 'Manhattan of Dubai', the property is owned and operated by Binghatti Developers under the Millennium Hotels and Resorts brand. Millennium Hotels and Resorts operates over 130 hotels worldwide with almost 40,000 rooms worldwide. Millennium Hotels and Resorts Middle East and Africa has expanded as one of the fastest growing regional hotel management companies in the Middle East and Africa. The hotel chain currently operates 35 hotels, has 11 hotels due to open within the year and 40 hotels in the pipeline across the region. "As one of the fastest growing, leading, and reputable hospitality brands, Millennium Hotels and Resorts MEA always strive to cultivate relationships with brands that represent high quality and excellence. We are therefore delighted to commemorate our association with award winning Dubai based Binghatti Developers at one of Dubai's largest Real Estate exhibitions Cityscape Global further strengthening our partnership portfolio and providing an exceptional experience to owners and guests," said Ali Alzaabi, President, Millennium Hotels and Resorts MEA. Binghatti Developers continually endeavours to transform the realm of real estate in one of the most sought-after cities in the world, adorning its well-known practical property market with an artistic touch combining the wonder of modern architecture with the charm of Arabic tradition and culture. Millennium Binghatti Residences is the very embodiment of this vision, both in terms of architecture, and with the added value of luxurious comfort and facilities provided by the world-renowned Millennium Hotels and Resorts. The venture promises a deluxe hotel-inspired experience to its residents on a daily life basis, to compliment the astonishing waterfront views of the Dubai Water Canal. The premier exhibition will see Binghatti Developers and Millennium Hotels and Resorts exhibit their joint venture in stand number S2E20 located in Sheikh Saeed Hall 2 and expanding almost 7000 square feet. Muhammad BinGhatti, CEO and Head of Architecture at Binghatti Holding said: "Cityscape Global has always been an excellent platform where distinguished projects, partnerships, and achievements are showcased and celebrated. As such, we are proud to celebrate our strategic partnership with Millennium Hotels and Resorts at the premiere real estate exhibition in the region, as a standing testament to our dedication to the luxury and lifestyle we promise our residents". Source: Khaleej Times Back to Index

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DAY 1 OF CITYSCAPE GLOBAL SEES SUBDUED LAUNCHES Wednesday, October 03, 2018 The first day of Cityscape Global 2018 has not seen as many launches as in the earlier editions of the property exhibition. However, in a quarter that has been bereft of any high-profile launches, it looked like developers were biding their time to pace out announcements closer to Cityscape. While Abu Dhabi developer Imkan's 'Sahel Al Emarat' project in Ghantoot was the biggest announced so far in terms of project value at a whopping Dh15 billion, Dubai developers have also followed suit with launches on a smaller scale. While most developers are launching new phases to existing projects, some have announced new ones as well. The Meydan Group launched Marsa Meydan, a waterfront residential community in Jebel Ali. It will be styled along the lines of the Newport Beach in Orange County, Los Angeles. Marsa Meydan will have waterfront villas with private pontoons and boat-mooring spots, as well as a climate- controlled marina. A network of canals will weave throughout the development. There will also be townhouses and apartments in the community. There will be four hotels in Marsa Meydan, a boulevard and a host of food and beverage outlets and retail shops will line the canals and boardwalk. Saeed Humaid Al Tayer, chairman and CEO of Meydan City Corporation, said: "The lifestyle on offer here is unparalleled; it will appeal to a wide spectrum of the UAE population with a conscious price positioning." Freehold in Jumeirah Dubai Holding has added a major freehold luxury landmark in Dubai's prime Madinat Jumeirah district - Madinat Jumeirah Living. Located opposite the Burj al Arab, the new project will complement the hospitality and tourism projects in Jumeirah district, which include Marsa Al Arab in addition to Burj Al Arab, Al Qasr, Mina Al Salam, Dar Al Masyaf and Wild Wadi water park. Abdulla Ahmed Al Habbai, chairman at Dubai Holding, said: "Madinat Jumeirah Living is a natural extension to the entertainment, hospitality, retail, tourism and lifestyle proposition of the Madinat Jumeriah resort. Dubai Holding is now elevating the masterplan of the prime Jumeira district, taking it further to address the demand for luxury living." Madinat Jumeirah Living will mirror the look and feel of Madinat Jumeirah Resort. The development will be directly connected to Souq Madinat Jumeirah via an air-conditioned pedestrian bridge. The project will break ground in 2019 and will be developed in phases. The first phase of the development is expected to be completed within 30 months following the ground-breaking. The 3.85 million sqft development comprises gated residential clusters. JVC gets more towers Bloom Properties has announced the release of two additional towers for sale within its existing Bloom Towers and Bloom Heights developments in Jumeirah Village Circle (JVC) in Dubai. The developer revealed that the new building within Bloom Towers will comprise 255 residential units, whereas the new addition to Bloom Heights is to feature 298 residential units.

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Bloom Properties also announced multiple payment plans and exclusive offers for property buyers at Cityscape Global 2018. Under the payment plan, customers buying properties within Bloom Towers and Bloom Heights during Cityscape Global can benefit from monthly mortgage payments starting from Dh1,600. Sameh Muhtadi, CEO of Bloom Holding, said: "The release of two new buildings for sale within our JVC developments comes in response to the significant interest both projects generated among investors following their launch." Deira gets a makeover Ithra Dubai has announced the 'Deira Enrichment Project'. The project will see either side of Hyatt Regency in Deira being transformed over the next 15 years. Tenders totalling Dh3.5 billion have been awarded to date. The first phase will include the Deira Gold Souq Extension. There will be 2,200 residential units in phase one of the Deira Enrichment Project, along with 840 retail outlets and hotels with 1,400 keys. There will also be a lot of green spaces. Nakheel is already working on giving a facelift to Deira with its Deira Islands project, which will include the city's largest mall. Source: Khaleej Times Back to Index

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REFORMS KEY TO BOOSTING BUSINESS CLIMATE IN GCC Tuesday, October 02, 2018 With oil prices crossing $80 per barrel, GCC countries are becoming complacent and not embracing economic reforms, analysts warned on Tuesday. Ziad Daoud, chief Middle East economist, Bloomberg Economics, said changes and reforms are more in some countries than others in GCC. "Some GCC countries UAE, Kuwait and Qatar have stronger balance sheet. The urgency for reforms is not that urgent. But other countries like Saudi Arabia, Bahrain and Oman have weaker balance sheet, therefore, urgency for reforms is urgent," Daoud said during the conference held in Dubai on Tuesday. Garbis Iradian, chief economist, Mena, Institute of International Finance (IIF), said with higher oil prices and narrowing fiscal deficit, the urgency for reforms has diminished in the six GCC countries. "Deeper structural reforms are needed to strengthen the business climate and improve competitiveness to support diversification and job creation. It is crucial to avoid complacency in the context of the recovery in oil prices. The case for widespread fundamental structural reforms remains as bureaucracy, lack of transparency, inefficiency, and unpredictability remain major impediments to achieving sustained, rapid, private sector-driven growth," he said. Anita Yadav, head of Fixed Income Research at Emirates NBD, said current oil price will average $70 to $75 per barrel this year and will likely to soften next year at around $70 per barrel. Speaking at Bloomberg Economics conference, she said oil supply constrain are here for the past few months but in the longer run Opec can add more production and capacity can be added. Hence, the crude prices will soften. ""Eventually, supply can pick up and that can balance demand and supply and bring prices down. It's hard to pick any month when the prices will decline but a lot depends on the news that come trickling in. We see $80 per barrel looks unsustainable and we are more in the camp of an average $70 to $75 for this year and next year would be closer to $70, expecting a slight softness next year," she said. UAE growth to pick up Garbis Iradian of IIF expects UAE growth to pick up from 0.8 per cent in 2017 to 2.3 per cent this year, supported by modest increase in oil production and fiscal stimulus of Dh50 billion announced by Abu Dhabi. "We expect residential rent declines to continue in 2019, albeit at a slower pace, as job growth remains low and new housing becomes available. While the UAE currency is overvalued, the flexibility of the labour market combined with implementation of structural reforms, would improve competitiveness without the need for currency adjustment," Iradian said. He expects real GDP in the six GCC countries to shift from a small contraction in 2017 to a growth of 2.4 per cent in 2018 driven by higher oil production and fiscal stimulus in Saudi Arabia. However, lackluster credit growth indicates sluggish recovery of the private sector. Source: Khaleej Times Back to Index

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UAE WEALTH SET TO GROW 51% TO DH5.14 TRILLION BY 2027 Wednesday, October 03, 2018 The UAE is 26th largest wealthy market in terms of total wealth held by the end of 2017. Growth in UAE wealth is expected to be strong over the next 10 years, growing at 51 per cent to reach $1.4 trillion (Dh5.14 trillion) by 2027, says a new study. According to New World Wealth report, the number of high net worth individuals (HNWIs) in UAE is expected to reach just over 140,000 by 2027, whilst the number of billionaires is expected to reach around 30 by 2027. Factors that should boost UAE wealth over the next one decade include, strong HNWI migration, strong growth in local financial services and professional services. The study found that the UAE is the largest wealth market in the Middle East with UAE residents holding $925 billion wealth with nearly half - 51 per cent or $470 billion - of the total wealth is held by high net worth individuals with wealth of $1 million or more. Globally, the UAE is 26th largest wealthy market in terms of total wealth held by the end of 2017, ranking ahead of Poland, Turkey, South Africa, Portugal and New Zealand. There are around 88,700 HNWIs with assets of $1 million or more and 3,800 people with assets of $10 million and more. While there are 240 UAE residents with $100 million assets or more and 13 billionaires with net assets of $1 billion or more, the report said. Average person in the UAE has net assets of $99,000, this is well above the world average of $28,400. Andrew Amoils, head of research, New World Wealth said at the end of 2017, approximately 38 per cent of UAE HNWI wealth was held in foreign assets, well above the worldwide average of around 24 per cent, which indicates that many wealthy individuals use the UAE as base for managing their businesses and investments around the world. Source: Khaleej Times Back to Index

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DUBAI INTERNATIONAL AIRPORT SETS NEW WORLD RECORD Wednesday, October 03, 2018 Dubai has 8.37 million reasons to celebrate after that number of customers passed through the world's #1 international airport Dubai International (DXB) in August, setting a new global standard and surpassing the airport's former record of 8.23 million set in August 2017. August marks the second consecutive month that DXB has crossed the eight million customer mark, setting Dubai Airports up for a strong third quarter. DXB's average monthly traffic this year is 7.5 million. That's 1.2 million more than its closest rival London Heathrow (6.29 million). Dubai Airports' CEO Paul Griffiths says: "It's another milestone for Dubai Airports as we continue to break records and set the bar even higher. While the numbers speak volumes about our growth, our aim is to continue pushing the boundaries on experience and provide customers with the best possible service. "We are making progress on that front as well with shorter queue times, world-leading F&B and retail and other touches like spas, swimming pools and trampolines that help us stand out from the crowd." Facts and figures Customers served 8,376,478 in August (+ 1.7%) which boosted DXB's year to date numbers to 60,323,570 (+ 1.6%). Baggage volumes: 7.2 million bags (+5.9%) passed through the airport's sophisticated 175 km long baggage system during the month. Queue times: Despite high volumes, queue times dropped 44%* in August thanks to Smart Gate technology that speeds customers through immigration and a new state-of-the-art operations nerve centre that leverages real- time big data into service and efficiency enhancements. Top destinations DXB continues to welcome people from all over the globe, leveraging its geocentric location to connect the world. India remained DXB's top destination country by customer volumes, with total traffic reaching 1,012,124 during the month. Saudi Arabia was second with 613,618 customers, followed by the U.K. with 603,531. Other markets of note include U.S. (306,701 customers) and China (215,211). The top three cities were London (371,574 customers), Kuwait (272,607) and Mumbai (210,820). The fastest growing regions were Eastern Europe up by a whopping 25.7%, the CIS up 14.8% and Africa growing 11.2%. Flights Flight movements during the month increased to 35,423 (+3.1%). The average number of customers per flight remained high at 243 but was down slightly (-1.6%) due to a high base. So far this year, 272,600 flights have taken-off or landed at DXB (-0.7%).

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Cargo

219,629 tonnes of airfreight moved through DXB in August (-2.3%) bringing total cargo tonnage for the year to 1,711,279 (-1.7%). Source: Khaleej Times Back to Index

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FEEL THE PULSE OF UAE'S HISTORY AT HEART OF SHARJAH Tuesday, October 02, 2018 The Heart of Sharjah is the largest historical restoration project in the region. Every city has an area that defines its pulse and reflects its journey through time. The Heart of Sharjah not only serves as a cultural heritage site that attracts thousands of tourists annually, but is also the area that combined communities for decades. Situated just five minutes from the city's corniche and 10 minutes from the Sharjah International Airport, the Heart of Sharjah was the capital of the territory ruled by the Qawasim sheikhs since 1813. Its corniche, where numerous ships and dhows are spotted, has been the main area that contributes to the maritime activities and land-bound economy. The Sharjah government has been working to restore the historical sites and build new structures in the area, which has been attracting art and history enthusiasts, to reflect what Sharjah was like in the 1950s. But ask people who have been living in the place for decades, they'd say the place goes beyond its breathtaking historic buildings that includes a large part of the historic souq area, as well as rulers' residences. AbdulRasheed Mohammed from Pakistan, who owns a shop for Khaleeji garments, has been living in the area for the past 55 years. He said the incredible changes that made the historic area integrate modern aspect to it has made it feel even more "homely". "You often feel that you're having guests who look different than the community you are in love with. Witnessing young creative people from all walks of life now visiting the area gives more opportunities to interact with different mindsets," said Mohammed. With the dhows previously docked on the residential side of the pier, Mohammed said the area used to be "extremely crowded" with the views of the lake blocked. Now as the ships are docked on the other side after an order from the authorities, the view has been a major attraction for residents and visitors who can jog, go for a walk, or hangout with their family and friends. The previously congested roads are now less noisy, he said. Samira Mushtaq from India, who has been living in old Sharjah for the past six years, said she now enjoys hanging out in those little modern cafes set by the lake, after having her morning jog. "Years ago, I never enjoyed the view from my balcony. But now, I enjoy looking at the lake that reminds me of the significance and history of this place," said Mushtaq. She added: "It's nice to live here. Witnessing the new souqs and cafes coming to life adds more joy to the place that's becoming a landmark in Sharjah." The Heart of Sharjah embraces art galleries, old traditional markets, archaeological sites and museums. One such market is Souq Al Arsah, probably the oldest market place in the UAE, which allows residents to step into the souq and begin a journey back in time with numerous quaint stores selling local new and antique handicrafts. Fort of Al Hisn, originally built at the beginning of the 19th century, but demolished in 1969, was rebuilt in 1996 as a symbol of new attention to the historic inheritance of Sharjah.

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For Bangladeshi resident Mohammed Qasim, it's the intimate sense of community that makes this place "so special".

"We all know each other and speak the same language though we are in an Arab country. Here, we feel like we are home," said Qasim, a resident in the Heart of Sharjah for the past seven years. Mohammed Ali from Pakistan said besides its restoration and continuous development, the area has been very convenient for a living. "There's a mosque on the right, a museum on the left, a corniche at the back. Where else do you find this?" said Ali. He added that living in a historical place allowed him to feel the change of time and development of his surroundings. Every corner reflects the important interchange of influences Sharjah has experienced, resulting in a major urban and technological development, while at the same time maintaining its cultural continuity. The Heart of Sharjah is the largest historical preservation and restoration project in the region. Planned over a 15- year period and to be completed by 2025, it will feature diverse commercial, cultural and residential projects - including a boutique hotel, restaurants, retail shops, art galleries, traditional and contemporary markets, archaeological sites, museums, play areas and commercial offices. Source: Khaleej Times Back to Index

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KEY DUBAI-SHARJAH ROAD PROJECT TO OPEN TODAY Tuesday, October 02, 2018 One of the five main linkages between Dubai and Sharjah. Traffic congestion on the road between Dubai and northern emirates and back is soon to be history after the complete opening of the Al Badea Bridge in the emirate of Sharjah on Wednesday. The mega project, worth Dh200 million, has been developed by the ministry of infrastructure in collaboration with federal and local entities concerned to boost the roads network in the country and boost economic boom. Informed sources told Khaleej Times that the interchange connecting the Emirates road and Sharjah-Maleha highways is one of the five crossways between the emirates of Sharjah and Dubai. "The high capacity of the 12-lane road is expected to significantly ease daily snarls and boost traffic flow." Eng Ahmed Al Hammadi, the manager of roads department at the ministry, earlier told Khaleej Times that the key project is to increase the capacity of the road by twice as much as before to reach 17,700 vehicles per hour. "The project will significantly raise the capacity of the sliding road three times to reach 2,500 vehicles per hour." The construction of a three-lane road over a distance of two kilometers in Dubai will also boost the capacity of the road to 6,000 vehicles per hour, he disclosed. "This will put an end to the problem of the road being congested with trucks, let alone the construction of a three- lane bridge towards Sharjah with a capacity of 6,000 vehicles to end the problem of the sliding road." The bridge will also reduce the trip time and ease the traffic congestions for those heading from Dubai to Sharjah and northern emirates in the evening, he underlined. "The slow movement of the trucks on the road in the direction Dubai to Sharjah affects its traffic flow and its capacity which is only 800 vehicles per hour, but this will be history with the new bridge." Source: Khaleej Times Back to Index

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300 NEW PARKING LOTS AROUND SHARJAH MOSQUES BY YEAR-END Monday, October 01, 2018 Around 300 new parking spaces, worth Dh6 million, will be built around the different mosques in the emirate by the year-end, according to Sharjah Roads and Transport Authority (SRTA) A total of 1,029 parking spaces, worth Dh14 million, have already been built for the convenience of worshippers, said Fatima Al Ketbi, director of roads projects at the SRTA. "The parking spaces around the mosques will rise to 1,329 with the ongoing projects worth Dh20 million." These parking facilities and other infrastructure projects are in line with the directions of His Highness Dr Sheikh Sultan bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, she added. "He has directed all the bodies concerned to build model mosques, pave the roads leading to them, and secure the parking spaces needed for worshippers and nearby residents' convenience." She said: "The new parking spaces are added to some 230-metre one-lane roads leading to the mosque. The Habib bin Zaid Mosque at the Qaraen-1 area will see 40 parking spaces, while the Al Imran Mosque at the Qaraen- 4 area will get 71 new parking spaces, and one-lane roads worth Dh1.5 million. "The roads leading to the Erbad bin Sariya Mosque at Al Muwafja area will be paved and also have 18 new parking spaces worth Dh1.5 million, while the Al Haq Mosque at Al Rahmaniya-5 area will get additional 106 parking spaces and 320- metre one-lane roads, worth Dh1.5 million. The SRTA will also build a rain drainage network, along with integrated lighting networks and necessary services in the mosques. As many as 64 parking spaces, worth Dh1.2 million, were built around Muflehoon Mosque at Al Muwafja area early this year. Source: Khaleej Times Back to Index

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UAE NON-OIL PRIVATE SECTOR GROWTH REMAINED STEADY IN SEPTEMBER Wednesday, October 03, 2018 The growth in the UAE’s non-oil private sector economy remained steady in September on the back of a sharper rise in new orders, however, the job market was sluggish for the second month in a row, according to the latest survey by Emirates NBD. The seasonally adjusted Purchasing Managers’ Index – a composite indicator designed to give an overview of operating conditions in the non-oil private sector economy – climbed to 55.3 in September from 55 in August. A reading above 50 suggests the non-oil economy is growing, while a reading below 50 indicates a contraction. The September data indicated a further rise in output across the UAE’s non-oil private sector. The rate of growth remained sharp and above the historical average, but it did slip to a five-month low in the latest survey, compiled by Emirates NBD and produced by IHS Markit, a financial information services company. “The headline UAE PMI stood at 55.3 in September, the third month in a row with a reading at the 55-handle. This signals a steady expansion in the non-oil private sector in Q3 2018,” Khatija Haque, head of Middle East North Africa research at Emirates NBD, said. “Backlogs of work rose again in September – unsurprising given strong output and new work growth with no increase in employment – but at the slowest pace since May.” Business confidence among the purchasing managers remained strong in the survey period. Projects related to Expo 2020, successful new product launches and planned business expansions underpinned optimism towards future growth prospects. Payroll numbers across the non-oil private sector decreased for the second month running in September, the first consecutive monthly decline in employment since the survey’s inception in August 2009. Nonetheless, the rate of job shedding eased since August and was only marginal overall, according to the survey. Inflows of new business improved during September. The rate of growth was steep and above that recorded in August. Survey data inferred that part of the increase in growth was driven by stronger foreign demand, which increased for the sixth month running. Partly reflecting an uptick in new order growth and falling employment levels, backlogs of work continued to build at an elevated pace during September, stretching the current sequence of outstanding work to 21 months, the survey noted. Average cost burdens rose during September, following unchanged input prices in the preceding survey period. Both average purchase prices and staff bills increased. The rate of inflation was only slight overall, however. Output charges across the non-oil private sector rose during the latest survey. The rise followed a four-month sequence of falling selling prices. Source: The National Back to Index

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UAE'S BLOOM RELEASES TWO TOWERS FOR SALE AT DUBAI RESIDENTIAL PROJECT Tuesday, October 02, 2018 Abu Dhabi-based Bloom Properties on Tuesday announced the release of two additional towers for sale within its Bloom Towers and Bloom Heights developments in Jumeirah Village Circle (JVC) in Dubai. The developer also revealed that the new building within Bloom Towers will comprise 255 residential units ranging from 1 to 3 bedrooms, while the new addition to Bloom Heights is to feature 298 residential units ranging from studios to 3 bedrooms. Sameh Muhtadi, CEO of Bloom Holding, said: “The release of two new buildings for sale within our JVC developments comes in response to the significant interest both projects generated among investors following their successful launch.” At the Cityscape Global real estate exhibition this week, the developer is set to showcase a diverse portfolio of residential developments taking shape across Dubai and Abu Dhabi. These developments include Bloom Heights and Bloom Towers in JVC and Stella Maris Tower in Dubai Marina in Dubai as well as Soho Square and Park View mixed-use developments on Saadiyat in Abu Dhabi. Source: Arabian Business Back to Index

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NEW $95M LA MER TOWER TO OFFER 350 SHARJAH APARTMENTS Tuesday, October 02, 2018 La Mer Tower consists of 350 apartments, ranging from 1 to 3 bedrooms, duplex apartments, offices and commercial shops, as well as 7 floors of parking spaces. Al Thuriah Group, a UAE-based real estate developer, on Tuesday unveiled its latest project, La Mer Tower in Sharjah. With 45 floors, La Mer Tower offers a panoramic 360-degree view of the sea and the entrances of the cities of both Sharjah and Dubai and is worth AED350 million ($95.2 million), the developer said in a statement. It added that La Mer consists of 350 apartments, ranging from 1 to 3 bedrooms, duplex apartments, offices and commercial shops, as well as 7 floors of parking spaces. The tower is designed with two independent entrances, one dedicated to the residents and another leading to the offices while it also offers two swimming pools and two health clubs - one for females and one for males. All apartments and shops are offered for sale under freehold, in harmony with the laws and regulations enforced in Sharjah. Raymond Khouzami, CEO of Al Thuriah Group said: “La Mer Tower is distinguished by its unique location on Al Mamzar Beach between Sharjah and Dubai. The tower is just a few steps away from the sea, separated only by Al Mamzar Beach road.” He added: "The design of this tower is a new architectural landmark that stands out from the tower designs in the city of Sharjah and takes into consideration the strategic location between Sharjah and Dubai. Therefore, the design was inspired by Sharjah’s heritage and culture, and Dubai’s high towers and commercial and economic trends, as well as the beach of the Arabian Gulf and golden sands that surround the tower.” Khouzami said he expects the completion of the tower in a "very short time" as all official documents are already obtained. Source: Arabian Business Back to Index

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DUBAI'S MADINAT JUMEIRAH LIVING PROJECT TO BREAK GROUND IN 2019 Tuesday, October 02, 2018 Madinat Jumeirah Living will mirror the look and feel of Madinat Jumeirah Resort, reflecting Dubai’s early cultural heritage. Dubai Holding has unveiled Madinat Jumeirah Living, a major new landmark in the city’s prime Madinat Jumeirah district. The 3.85 million sq ft development comprises residential clusters, all connected through shaded pedestrian walkways and jogging paths. Dubai Holding said the pedestrian centric, environmentally friendly development has been designed with safety at its core, limiting car access to designated drop off areas, basement and residents parking. The project will break ground in 2019 and will be developed in phases over 30 months, a statement said. The project will also include a community centre, retail, day care centres, play areas, parks and open spaces, gyms and swimming pools and kilometres of shaded walkways, jogging and cycling paths. Madinat Jumeirah Living is located where Jumeirah Beach Road and Umm Suqeim Road meet, opposite Madinat Jumeirah Resort and overlooking some of the world’s most luxurious hotels. Dubai Holding added that Madinat Jumeirah Living will mirror the look and feel of Madinat Jumeirah Resort, reflecting Dubai’s early cultural heritage. It will be directly connected to Souq Madinat Jumeirah via an airconditioned pedestrian bridge. Madinat Jumeirah continues to be one of the most popular destinations in Dubai, welcoming over 2.8 million visitors in the first half of 2018 alone. Abdulla Ahmed Al Habbai, chairman at Dubai Holding said: “Madinat Jumeirah Living is a natural extension to the hugely successful entertainment, hospitality, retail, tourism and lifestyle proposition of the Madinat Jumeriah resort, which we have built and enhanced over the years. "Dubai Holding is now elevating the masterplan of the prime Jumeira district, taking it further to both address the demand of luxury living and to fully realise its potential as a truly holistic and world-class destination.” Source: Arabian Business Back to Index

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ARADA REVEALS FINAL MASTERPLAN OF CENTRAL HUB FOR $6.8BN MEGA PROJECT Tuesday, October 02, 2018 The Central Hub design by Zaha Hadid Architects - conceptualising the first moment a water droplet strikes the earth’s surface - will feature green space and water features. UAE developer Arada has unveiled the design for the focal point of its $6.8bn Aljada development in Sharjah. The Central Hub design by Zaha Hadid Architects - conceptualising the first moment a water droplet strikes the earth’s surface - will feature green space and water features. The 1.9 million sq ft space – equivalent to the size of 25 football fields – will feature a public square at its centre, where its anticipated that large community gatherings like New Year’s Eve and National Day celebrations will take place. The area will be fully walkable year–round thanks to the array of elliptical buildings that are designed to channel prevailing winds into public spaces and courtyards to aid natural cooling during the hot summer months. The car-free zone will also include a showpiece water feature as well as dining outlets and cafes built around a waterfront setting. In addition, a circular walkway will allow residents and visitors to Aljada to explore the complex, which will include a large landscaped community park that will be home to thousands of specially selected trees and plants. Work on the first phase of the Central Hub – which will include Arada’s state-of-the-art sales centre, an outdoor cinema space, a food truck village, skate park and other family-friendly facilities – has already begun and is scheduled to be completed by the end of the first quarter of 2019. Arada is on track to complete the entire complex by 2022. “Our plan has always been to build extraordinary, engaging and life-changing communities,” Sheikh Sultan bin Ahmed Al Qasimi, chairman of Arada. “That is reflected in the bold final design of the Central Hub, which will soon be a new focal point not just for Aljada, but for the whole of Sharjah and the rest of the UAE as well. We are working on putting together some incredible new partnerships for the Central Hub, and we will be announcing these in the coming months.” Prince Khaled bin Alwaleed bin Talal, vice chairman of Arada, added: “Sustainability is absolutely central to Arada’s vision, and that has been reflected in the Central Hub’s final design. We are working hard to protect and encourage local native species, as well as making the most of our natural environment. We’re also doing this in a way that is cost-efficient and leaves as small an impact on the planet as possible.” In April, Arada also announced the launch of East Village, a 15-building creative community targeting the younger generation, which constitutes Phase 2 of Aljada. Also in April, Arada signed a management agreement with Emaar Hospitality Group to bring three new hotels, The Address Aljada Sharjah, Vida Aljada Sharjah and Rove Aljada to the megaproject. In January, the developer also confirmed that the global engineering giant Jacobs had won a key contract to design the infrastructure for the project. Source: Arabian Business

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DON'T DESTROY THE TRUST IN DUBAI'S PROPERTY MARKET, RERA CEO TELLS DEVELOPERS Tuesday, October 02, 2018 Marwan Ahmed Bin Ghalita, CEO of the Real Estate Regulatory Agency (RERA) - the regulatory arm of Dubai Land Department. The CEO of Dubai’s property regulator warned developers to deliver on what they promise and maintain the trust that the market has built. Speaking at the Cityscape Global conference, Marwan Ahmed Bin Ghalita, CEO of the Real Estate Regulatory Agency (RERA) - the regulatory arm of Dubai Land Department - said while the trust is back in Dubai’s property market, developers who fail to deliver promises on projects risk ruining the faith shown by investors. “My message to the developer: always deliver what you promise, because trust is there in the market; we don’t want to spoil the trust,” Ghalita told the packed audience at InterContinental Dubai in Festival City. “Whatever you promised, you always need to deliver it. We as a government regulator are always watching that, but the first line of defence is you. As a developer, always deliver what you promise.” He extended the warning to real estate agents, saying they should give investors more information than they require when selling a property. “Real estate agent: you should educate them (investors) this time,” he said. “Flood them with the information they require, even more than what they require, because you are a consultant, and not just a broker that wants to finish the deal. The real estate market is here to sustain; it’s not just about closing one deal, getting the commission and flying away.” Protect the trust Ghalita said RERA’s job is to protect the investors, whcih helps build confidence in investing in Dubai’s property market, and creates a positive sentiment for others to buy. “We as a government have a responsibility to protect the investors’ money in off-plan sales, and this is what we’re doing by changing the rules and regulations based on the market conditions,” he said. “Most of you know that nowadays we don’t accept less than 50 percent deposit in the escrow account before we start releasing the money for the developer, and in some projects we raise it to 70 percent. This is our job, to make sure that the investor money is secure and protected.” Oversupply Addressing ongoing concerns about oversupply, Ghalita said this was in the hands of the developers who launch new projects. “If we come to the opportunities that the real estate market is giving, everybody will be worrying about price, [and] oversupply, but at the end of the day there is always an economic cycle for everything and this industry lays

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in the hands of the developer themselves - whatever they want to offer to the investor at the end of the day,” he said.

“So managing supply, from my perspective is, as a government [regulator] we put rules and regulations and services in place, making sure that the investor is safe in terms of his investment. But how much supply is in the market, it depends on the developers.” Healthy market Ghalita said Dubai's property market is in a good place and will contiue to thrive, pointing to the recent announcement of a record UAE Federal budget for the next three years as a stimulus for the economy. He also referred to the recent statistics released by the Land Department that detailed the number of new investors in Dubai’s property market. “This (Federal budget) has an impact – people are still investing and buying. The Land Department numbers show that there is 9,500 new investors in the last eight months – equivalent to the AED19 billion ($5bn) – 6,500 male, 3,000 female. All of this comes from the trust in the industry itself,” he said Cheaper than a luxury car RERA is talking to banks to make it easier for people to get on the property ladder, and Ghalita said “banks should be more cooperative in this sense, and should give more solutions, which they are doing”. “On the other hand, the developers are being creative in financing their product. Most of the announcements and advertisements you see in the market, they go up to a ten-year payment plan,” he said. “I keep telling them, to buy a property in Dubai is cheaper than buying a luxury car because of the payment plans, but in terms of assets, it has more value than a car. I think the developer is finding new ways of financing their projects by giving waivers for service charges, fees, and [offering] payment plans after competition.” Source: Arabian Business Back to Index

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DUBAI DEVELOPER PICKS JEBEL ALI FOR LOW-COST RENTAL HOMES Tuesday, October 02, 2018 The government-owned developer Ithra Dubai has confirmed plans to build a rental community in Jebel Ali targeted at those earning in the Dh5,000 plus a month range. The master plan is being finalised, but the location would be near Jebel Ali Port. “We are taking this on as a pilot project — but the intention is to encourage people to live there (Jebel Ali),” said Issam Galadari, CEO of Ithra Dubai, which is wholly-owned by Investment Corporation of Dubai. “It will be challenging to create housing that can be rented out to those in that income range. “But if get the other authorities in Dubai to help — Dubai Municipality, RTA and Dewa — I think we can achieve it.” The biggest hurdle to creating such affordable housing are local regulations that demand developers should plan properties to feature one parking space, even if it is a studio-sized unit. “We want to test how with the help of the other authorities we can overcome these,” the CEO added. “The Municipality and Dewa have confirmed they are with us — we will be meeting with RTA to get their views.” The inner regions of Jebel Ali are among the few places in the city where developers can attempt projects that would serve need for budget housing. What Ithra Dubai is aiming to do is create something across a bigger area and adhering to certain bare minimum build parameters. The CEO said that once these are in place and the master plan done, it can bring the project to market easily enough. Source: Gulf News Back to Index

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DUBAI'S DEIRA WILL BE WEARING A NEW LOOK AS PART OF A MEGA-PROJECT Tuesday, October 02, 2018 The first phase of a development that will see either side of Hyatt Regency in Deira being completely transformed over the next 15 years has been officially launched. Government-controlled Ithra Dubai will be overseeing the “Deira Enrichment Project”. Phase 1 involves 36 plots from Hyatt Regency and stretching all the way to Shindaga Tunnel, and is already several steps into its construction cycle. Tenders totalling Dh3.5 billion have been awarded to date, and this phase will also cover the Deira Gold Souq Extension. This will also be the part to open to the public first — in the fourth quarter of 2019, which will aid the city’s gold jewellers put in fresh roots in what has historically been the most important trading spot for them. The existing roundabout in the area will be replaced a newer set of roads. Later parts of Phase 1 will extend to other trades in Deira, and done in such a way that would “transform our past into landmarks of the future,” said Issam Galadari, CEO of Ithra Dubai, which comes under Investment Corporation of Dubai. This phase would take up six years or so to reach full development, and will include extensive retail areas, offices and up to eight hotels. Phase 2 — for which the master plan is yet to be ready — will cover the area from the other side of Hyatt Regency all the way to the Waterfront Market. A facelift for Deira was something that Dubai’s historical quarter needed urgently. Some of that need is being met by Nakheel’s grand Deira Islands project, which will include the city’s largest mall and much else besides. Now, with Ithra Dubai’s mandate, the charm of Deira can be given a more contemporary look and feel. Going forward, it would also help pull in more tourists, especially when the new Gold Souq extension gets into full flow. According to Raad Jarrah, Chief Development Officer, much of Phase 1 involves work on undeveloped land. “It’s not about building over existing structures,” the CEO said. “What we are doing is create an extension to what’s already there.” But it’s not always smooth sailing — some of the new builds will happen on top of the metro tunnel/station, and which will require some nifty engineering to accomplish the desired results. And another two plots are directly on top of the Shindaga Tunnel. “What was missing in Deira was the greenery and the shading even as the businesses continued to operate,” said Galadari. “The challenge was to get the authorities to allow us to do something that was missing. It takes a long time to get things approved. Nothing much has been done in those parts over the last 30 years. “But Deira has been the foundation for business in Dubai. Our task is to make sure the foundation is always strong.” There will be 2,200 residential units added in Phase 1 of Deira Enrichment Project, alongside 840 retail outlets and hotels with 1,400 keys. But there will also much in the form of green spaces and shades in the way Ithra Dubai has conceived the master plan.

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Source: Gulf News

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RAK PROPERTIES MULLS SUKUK ISSUANCE FROM 2019 TO GROW PORTFOLIO Wednesday, October 03, 2018 RAK Properties, the UAE real estate developer, expects to tap the sukuk markets from 2019 and raise additional bank financing as it continues to deliver its 30 million square foot Mina Al Arab coastal project in Ras Al Khaimah. “We always look at what is the optimal financing structure on a project-by-project basis, whether it’s sukuks or bank financing,” said Samuel Sidiqi, chief executive of RAK Properties, in an interview with The National. “Right now we are just using bank financing but we are open to examining sukuks. I don’t know if we would do this in 2019 or [at a later date]. We’d have to look at the markets and see what our requirements are. It’s certainly possible that we would also raise additional bank loans in the next 12 months,” he added. Issuance of Sharia-compliant bonds in the GCC slowed by around 15 per cent in the first three quarters of this year on the back of tightening global liquidity and rising interest rates, according to a report by S&P Global Ratings last month. Mr Sidiqi, who was appointed in May, declined to disclose the size of the sukuk RAK Properties would issue if it went ahead with its plan. The developer, which is listed on the Abu Dhabi stock exchange, is constructing the Mina Al Arab and Hayat islands off the coast of Ras Al Khaimah, to create a cluster of beachfront mixed-use communities. It unveiled the second phase of Marbella Villas, a residential scheme on the Dh3bn Hayat Island development, during the Cityscape Global exhibition in Dubai this week, and said the first phase of the 205-villa scheme had sold out. Elsewhere on Mina Al Arab, 800 apartments, 600 villas and a 1.2 kilometre-long corniche have been completed, Mr Sidiqi said. The company is also building two hotels – the Anantara and Intercontinental – and other housing schemes at varying stages of construction, including Flamingo Villas, Gateway Residence, Bay Residences and Julphar Residences. RAK Properties posted an 82 per cent drop in annual net profit to Dh4.3m for the second quarter of 2018, with lower sales and higher expenses hitting its earnings. Revenue from sale of properties stood at Dh2.9m, down from Dh82m in the second quarter of 2017, the company said in a bourse filing in August. The sluggish UAE real estate market, which has seen residential rents and sales prices decline by at least 10 per cent year-on-year in the past two years on the back of low oil prices, also had an impact. “The market did affect the results, but it had more to do with what we were selling and when: there were more deliveries in 2017 than 2018,” Mr Sidiqi said. “You’re going to have chunky bits here and there,” he said. “As a property company it is not helpful to look at results on a quarterly basis because you’re building projects over many years, and especially when you have off- plan sales.” Source: The National Back to Index

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DUBAI HOLDING DIRECTOR SEES END IN SIGHT TO REAL ESTATE MARKET CORRECTION Thursday, October 04, 2018 Dubai’s real estate market is close to the bottom of a two-year downturn and the market should pick up in 2019 as business activity gains momentum ahead of Expo 2020, said a senior official at Dubai Holding, the emirate’s investment vehicle. “Yes, there has been a correction in prices, a correction in the designs of products – the type and quantity – but this is purely a correction in terms of supply and demand,” said Khalid Al Malik, chief real estate officer at Dubai Holding and acting group chief executive of Dubai Properties, a unit of Dubai Holding. “Personally, I’m very optimistic and believe the market will pick up in 2019,” he told The National in an interview. Dubai Holding is building the 2.2 square kilometre Marsa Al Arab two-island complex near the Burj Al Arab, and the Dubai Creek Harbour mega-project in partnership with Dubai-listed Emaar Properties. The emirate’s real estate market is no longer driven by the rapid buying and selling – or ‘flipping’ – of luxury property that characterised the pre-2009 boom years before the global economic downturn. Instead, the market has matured and is catering to a broader range of tastes and price points, Mr Al Malik added. “Honestly, the market has been very different because before it was very much dependent on speculation, which put it totally out of [balance]. Today, we are dealing with real customers, people who have the money to buy; the end users, the ones who buy for the purpose of actually living in these apartments and villas. The market is very stable now,” he said. In addition, the number of visitors to Dubai is forecast to reach between 21 and 22 million by 2022. The Expo 2020 Dubai mega-event is a further draw for tourists and prospective investors alike, as it will bring a “huge demand on everything – from transportation, flights, roads, rental properties and hotels. All the indications are positive so we need to be prepared,” Mr Al Malik said. His optimism comes after a sluggish few years for the UAE property industry. Residential sales and rental prices have dropped in the wake of a three-year oil price slump, with year-on-year declines exceeding 10 per cent in some neighbourhoods as housing allowances were squeezed and buyers and renters sought cheaper deals. However, increased government spending and an uptick in oil prices to $83 per barrel (Dh305) this year have buoyed investor sentiment and prompted expectations that prices could start to rise again from 2019. Consultancy JLL said in a report this year that while residential prices in Dubai have fallen by around 20 per cent since the last market peak in October 2014, the market is now approaching the bottom of its cycle, with only limited declines expected over the next year. Meanwhile, recent changes to UAE visa laws to allow 10-year residency for certain expats is expected to encourage long-term residents to buy property, rather than rent, JLL said. “I think [the decline in prices] has been overly negatively described,” Mr Al Malik said. He was speaking to The National at the Cityscape Global property exhibition in Dubai this week, where developers showcased a slew of upcoming projects and launched thousands of units for sale.

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Dubai Holding is marketing Madinat Jumeirah Living, a new luxury residential development with gated apartment clusters, community retail, parks and swimming pools to be constructed next to the company’s Marsa Al Arab tourism destination near the Burj Al Arab. Madinat Jumeirah Living is scheduled to break ground early next year and be completed within two years. The company continues to sell phased units at its other residential schemes, where further development continues as buyers and tenants move in, which include One JBR, Villanova, Mudon and others. The majority of buyers are from the UAE, India and the UK, Mr Al Malik said, in line with investment trends across the emirate reported by Dubai Land Department. Dubai Holding will continue to offer a mix of affordable and luxury products, “as flexibility is key to being competitive as a real estate company,” he said. Mr Al Malik became acting chief executive of Dubai Properties last month following the resignation of Raed Al Nuaimi who was appointed to the role as part of a management reshuffle in February. Dubai Holding is looking for a permanent replacement, Mr Al Malik said. Source: The National Back to Index

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EGYPT’S SAWIRIS RE-LAUNCHES PROPERTY UNIT WITH $2BN BUILD TARGET Wednesday, October 03, 2018 Egyptian billionaire Naguib Sawiris has re-launched his real estate entity Gemini Global Development, forming a new venture called Ora Developers with a target to build $2 billion (Dh7.34bn) of property in the coming five years, its chief operating officer said. “Our target is to construct $2bn of property across the Middle East in the next three to five years,” Haitham Mohamed, who is also a board member at Ora Developers, told The National during the Cityscape Global conference in Dubai on Tuesday. “The developments will be based on our lifestyle destinations model and have the same standards of design and construction as our current projects.” As Gemini, the company launched in 2016 and has a $2.5bn global real estate portfolio comprising the Silver Sands mixed-use scheme in Grenada, Ayia Napa Marina in Cyrus, and the Eighteen luxury residential project in Islamabad, Pakistan. The portfolio includes a total of 2,500 homes, three hotels, retail facilities and a marina and the company has several schemes in the pipeline in Egypt. As chairman and chief executive of Ora Developers, Mr Sawiris intends to re-position the company as a creator of high-quality lifestyle destinations. “We want our new brand to be seen as a stamp of excellence for our existing and future developments,” he said in a statement to media on Tuesday. Mr Sawiris is the former chief executive of Orascom Telecom Media and Technology – he stepped down in 2017 but remains as the company’s chairman – and the Sawiris family-owned Orascom conglomerate spans construction, tourism, manufacturing and technology, as well as telecoms. Ora Developers’ planned projects in the Middle East are likely to include a mix of holiday resorts, residences, villas and marinas built in locations of “natural beauty”, with cultural and heritage elements, according to the company. The first project the company unveiled as Ora Developers was the Eighteen Islamabad project earlier this year, targeted at wealthy overseas Pakistanis. Source: The National Back to Index

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SA UDI ARABIA OUTLOOK STABLE AS 'MODERATE' GROWTH CONTINUES TO 2021, S&P SAYS Saturday, October 06, 2018 S&P Global Ratings maintained a stable outlook for Saudi Arabia on expectations that moderate economic growth will continue until 2021 as the government boosts its investment. S&P also affirmed its rating of 'A-/A-2' on Saudi Arabia's long and short-term foreign and local currency sovereign credit, it said in a report on Saturday. "We expect that the Saudi authorities will continue to take steps to consolidate public finances over the next two years, while maintaining the government's large stocks of liquid external assets," the credit rating agency said. The kingdom's economy is expected to grow an average of just over two per cent each year in the period between 2019 and 2021, the report showed. Saudi Arabia, the biggest Arab economy, contracted 0.9 per cent last year and is projected to expand 2 per cent this year, 2.1 per cent in 2019 and 2.2 per cent in 2020, the World Bank said last week. S&P could raise its ratings if the kingdom's economic growth prospects "improved markedly" beyond its current assumptions, it said. The agency may lower its rating if there is a build-up of arrears or a reversal in Saudi's fiscal consolidation efforts. "Higher-than-expected fiscal revenues have been met with higher expenditures, but we do not expect a material deviation from official fiscal targets," S&P Global Ratings said. In its first pre-budget meeting, Saudi Arabia said it plans to boost spending by more than 7 percent in 2019 to stimulate economic growth, while continuing to gradually reduce its budget deficit. The kingdom is forging ahead with an ambitious plan to reduce the economy's reliance on oil, create jobs for Saudi nationals, reform the domestic education and job market and consolidate the budget. The government is implementing a series of reforms that include raising the participation of women in the workforce and increasing the private sector's role in the economy, while aiming for a balanced budget by 2023. Among the reforms the kingdom has already implemented as part of its Vision 2030 economic transformation strategy are the introduction of a 5 per cent VAT in January, far-reaching changes to its capital markets and the enactment of new bankruptcy legislation to support corporate financial restructuring. S&P Global Ratings has raised its fiscal consolidation expectations for Saudi in 2018 and 2019 as a result of higher oil price assumptions, but expects the pace of consolidation will slow in 2020 and 2021 as prices fall again, it said. It forecast an annual average increase in government debt of about two per cent of the gross domestic product from 2018 to 2021, down from its earlier assessment of three per cent, it said. Source: The National Back to Index

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DUBAI'S FDI SOARS 26% TO $4.84BN IN FIRST HALF OF 2018, GOVERNMENT SAYS Saturday, October 06, 2018 Dubai’s foreign direct investment flows soared 26 per cent in the first half of this year to $4.84 billion (Dh17.76bn), in a firm sign that diversification efforts and support for start-up companies are bolstering the emirate's economy. The number of FDI projects also surged 40 per cent to 248, according to data from the Dubai Investment Development Agency, which is part of the emirate’s Department of Economic Development. "The rise in FDI capital and projects reinforces Dubai’s leading position as the preferred global location for global businesses and startups pursuing growth and expansion and clearly reflects investor confidence in Dubai’s economy,” said Sheikh Hamdan bin Mohammed bin Rashid, Crown Prince of Dubai and chairman of the Executive Council, in a statement. The Dubai government has taken a number of steps to attract more foreign investment, relax regulations and lower the cost of doing business. The UAE has also announced plans to grant permanent residency under certain conditions and issue 10-year visas to help attract more investors and entrepreneurs to the country. Jihad El Eit, founder and chief executive of the restaurant chain Man'oushe Street, said entrepreneurs and start- ups have seen the benefits - such as waiving fees and relaxing regulations - first hand. “We believe it is much cheaper to start a business than three years ago and the investment environment is much better because of the cost of doing business," he said. "Today the government is making a lot of incentives for people to do business, things we haven’t seen before, such as cancelling guarantees for labour insurance and supporting trade licences." Mona Ataya, founder and chief executive of Mumzworld, a Dubai online retailer for mother and baby products in the Middle East, said more companies are choosing the city as their base. "Dubai’s central location is perfect and at strategic arms lengths to east and west. It connects MENA, Asia, Africa and Europe. Its outstanding location makes accessing suppliers, distributors, and brands so easy," said Ms Ataya, whose company raised $20 million in its latest funding round. "Dubai and the UAE are known to be safe haven in the region, with the best security in place, making life easier for businesses, and making it safer to attract talent from around the globe and from the region. "Due to Dubai’s very strategic location, and outstanding business environment, Mumzworld, has been able to grow and attract investment." She also said that the "quality of life and diverse population" makes it easier to hire and retain talented professionals. New figures released on Saturday also showed that strategic projects made up 56 per cent of total investments, according to government data. The US, India, Thailand, Spain and the UK led the list of source countries for FDI capital, while the US, France, UK, India and Switzerland held the top spots for investment projects.

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“FDI flows in the first half of 2018 reaffirm the sustained growth of Dubai economy, and the diversity, competitiveness and attractiveness of the emirate,” said Sami Al Qamzi, director general of the DED.

Last year, Dubai attracted Dh23.7bn in FDI flows, a 7 per cent increase from 2016. Fahad Al Gergawi, chief executive of Dubai FDI, said he was “confident about the future prospects for enhancing FDI flows, especially following the issuance of new laws that enhance Dubai's competitiveness as a preferred global destination for investment". He said new laws that allow 100 per cent foreign ownership of companies and 10-year residency visas are key to attracting investors, professionals and top-performing students. Source: The National Back to Index

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BAHRAIN BANKRUPTCY LAW TO SPUR FOREIGN INVESTMENT Saturday, October 06, 2018 Bahrain’s new bankruptcy law, introduced on Wednesday, is a significant boost for the Arabian Gulf's smallest economy, as it will help lure foreign investment and support the growing community of small businesses in the kingdom. This law will bolster Bahrain's "drive for diversification, and in particular nurturing the start-up and SME market and increasing its footprint in the fintech space,” said Rad El Treki, head of corporate structuring, Bahrain, at law firm Al Tamimi & Company. Bahrain's bankruptcy law is based on Chapter 11 insolvency legislation in the US, which provides companies in financial difficulty with an opportunity to restructure under court supervision, Bahrain Economic Development Board, the country’s inward investment agency, said in a statement. “It will introduce measures to allow company reorganisation, where the management is allowed to remain in place and continue business operations during the administration of a case, similar to the Chapter 11 process in the US,” said Khalid Al Rumaihi, chief executive of Bahrain EDB. Governments in the Arabian Gulf have begun implementing modern bankruptcy legislation in the wake of a three- year oil price slump which has crippled some businesses and made bank financing scarcer, particularly for SMEs. The UAE's bankruptcy law took effect at the end of 2016, while Saudi Arabia enacted its legislation this summer. One of the intended outcomes of Bahrain's banktruptcy law the promotion of good governance and investor confidence, said Buthaina Amin, director of legal affairs at Bahrain EDB. “With a forward looking restructuring mechanism, we are looking at the likelihood of a decrease in the possibilities of liquidation,” she told The National. “Ultimately, this should foster greater access to credit, which is vital to all entrepreneurs, start-ups, and SMEs looking at launching and growing their businesses. With positive reforms that promote increased transparency and provide for restructuring options, the economy would expect to get a boost as a result of debtor and investor confidence – further encouraging innovation.” Bahrain has seen its foreign investment levels increase dramatically over the last year and wants to continue ramping up inward investment by refreshing corporate legislation and strengthening its business environment. Bahrain EDB reported a record $810 million of foreign direct investment during the first nine months of the year, compared to $733m in the whole of 2017. However, the smallest economy in the GCC remains fiscally weak after it was hit hard by the slowdown in the regional economy since 2014 and external borrowings soared. Bahrain signed this week a financial support package from its neighbours the UAE, Saudi Arabia and Kuwait, which is expected to ensure fiscal stability of the country’s financial institutions. In 2011, the GCC agreed a $20 billion aid package for Bahrain and Oman to support their economies over a 10-year period following the global financial crisis.

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The country's new bankruptcy law was part of a package of legal reforms announced on Wednesday intended to strengthen the regulatory climate for current and prospective investors in Bahrain, and shore up the economy as a result. Bahrain is introducing a personal data protection law intended to govern the processing of data for commercial use, a competition law to prevent the formation of monopolies, and new health insurance legislation. “The reforms demonstrate that Bahrain continues to create a regulatory environment that is in line with international standards and best practices, to remove stigmas and deterrents, and provide more reassurance to investors and companies operating in and looking to invest in the kingdom,” Mr El Treki said. Source: The National Back to Index

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REVEALED: HOW WE FEEL ABOUT THE DUBAI REAL ESTATE MARKET Saturday, October 06, 2018 Aside from the usual launch of developments, sales pitches and announces, this year’s Cityscape in Dubai was abuzz with one word: trust. At the Cityscape Global Conference, for example, Marwan Ahmed Bin Ghalita, the CEO of the Real estate Regulatory Agency (Rera) – the regulatory arm of Dubai Land Department – said that while trust is back in Dubai’s property market, developers who fail to deliver promises on projects risk ruining the faith shown by investors. “My message to the developer is this: always deliver what you promise, because trust is there in the market; we don’t want to spoil the trust,” he said. “Whatever you promised, you always need to deliver it. We as a government regulator are always watching that, but the first line of defence is you. As a developer, always deliver what you promise.” Speaking to Arabian Business on the sidelines of the event, Elaine Jones, executive chairman of Asteco, the Middle East’s largest real estate services company, said that the levels of trust in Dubai’s real estate market are bolstered by a number of well-known and commendable landlords and property developers. “Particular landlords and particular developers have earned trust, where they look after and treat their occupier with respect. There are a number of very good, solid developers who take great pride in what they do and believe that the customer comes first and should be treated with respect,” she told us. While she readily admitted that there are still developers who have mismanaged their projects, Dubai’s real estate market has matured to a stage where such practices are not taken as a reflection of the market as a whole. “It reflects badly on that particular development, but I don’t think it’s the whole market. I don’t think that we can generalise anymore,” she said. “We shouldn’t because if we are looking at occupancy then we have professional landlords here who have been landlords for a long time now. They know how to treat their tenants and look after their own assets and occupants very well.” She adds how important this is to keep in mind. “This is a critical question. How well is this project run? That’s how you make a good investment decision.” Is oversupply an issue? In his remarks, Ghalita also touched on another constant concern in Dubai’s property market: that of oversupply. In Ghalita’s eyes, these concerns rest squarely in the hands of the developers who launch new projects. “If we come [to talk about] the opportunities that the real estate market is giving, everybody will be worrying about price and oversupply, but at the end of the day there is always an economic cycle for everything and this industry lays in the hands of the developer themselves. It is ultimately about what they want to offer to the investor.” The government, Ghalita added, can only do so much in terms of regulation when it comes to supply, noting that its role is to put regulations and rules in place that protect investors by ensuring the safety of their investors. The developers, for their part, are the ones left in control of the supply. Jones also spoke on this subject, noting that the issue of oversupply remains fundamentally misunderstood. “Geographically and physically, we’ve grown a great deal. Yes, in certain places and certain sectors, for sure there

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is an oversupply. But that doesn’t mean that it is everywhere. I think what need to be focusing on are employment drivers,” she said. “We can have all this property, but we need people to have employment who need or want to live in that particular location. And then they need to be able to rent or buy wherever that may be.” A better 2019 Ghalita noted that Dubai’s property market is in a good place and will continue to thrive, pointing to the recent announcement of a record UAE federal budget for the next three years as a stimulus for the economy. He also referred to recent statistics released by the Land Department that detailed the number of new investors in Dubai’s property market. “This federal budget has an impact – people are still investing and buying. The Land Department numbers show that there were 9,500 new investors in the last eight months – the equivalent to AED19bn ($5bn), comprised of 6,500 males and 3,000 females. All of this comes from trust in the industry itself,” he said. Ghalita’s thoughts were echoed by Jones, who said she is confident that 2019 will be an improvement over this year. “We’ve got Expo 2020 coming, so there are certain projects that need to be started, developed and finished. So we know there will be quite a bit of activity. Plus the stimulus package and federal budget going forward means that next year should be better than this year. But certainly, it’s been a period of consolidation. We see the number of companies that have merged, the number of employment opportunities that have reduced. We hope to see that reversed, but again, that comes down to economic drivers. It’s employment – we need people to have jobs to be able to make everything else worthwhile.” Source: Arabian Business Back to Index

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SOBHA GROUP TO BEGIN WORK ON OMAN MIXED-USE PROJECT IN EARLY 2019 Thursday, October 04, 2018 PNC Menon said that Sobha has signed a Memorandum of Understanding (MoU) with the Indonesian government to build a “luxury tower” in the country’s capital, Jakarta. UAE-based Sobha Group plans to begins work on a new mixed-use development in Oman early next year before beginning work on a residential scheme in the Indonesian capital of Jakarta, according to Sobha Chairman PNC Menon. Speaking to Arabian Business on the sidelines of Cityscape Global in Dubai, Menon said that that the project is being undertaken in partnership with the Omani government. “It’s a mixed-use project. It’s in a very important area close to the Opera. There will be a hotel and a small mall, an office block, and residential [units],” he said. “We should be started in the early part of next year, in the first half.” Additionally, Menon said that Sobha has signed a Memorandum of Understanding (MoU) with the Indonesian government to build a “luxury tower” in the country’s capital, Jakarta. Looking further to the future, Menon said that he remains keen on expansion in the United States and United Kingdom, although that is only likely to happen after several years. Additionally, Menon expressed an interest in seeking a dual listing in both Dubai and London to finance further growth. “I hope that in 2021, we should be able to definitely think about going public. Why in two places? Because if you want to be an international company with a lot of dreams, you have to be in London, or New York. But, for this part of the world, it’s London,” he said. “But I definitely want to be listed in Dubai too.” Sobha Group - which has a separate entity listed on the Indian stock exchange - is currently working on the $4 billion Sobha Hartland and the $8.5 billion District One, both in Dubai. Source: Arabian Business Back to Index

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REVEALED: HOW DUBAI HOMES ARE BECOMING MORE AFFORDABLE Saturday, October 06, 2018 Dubai fell 29 spots - or, rather, rose - in the affordability ranking, one of seven cities to drop more than 10 spots from last year’s list. Getting on to the housing market ladder in Dubai is getting easier with affordability levels rising, according to the annual Bloomberg Global City Housing Cost Index. The UAE city fell 29 spots - or, rather, rose - in the affordability ranking, one of seven cities to drop more than 10 spots from last year’s list, including Moscow, Istanbul, Rio de Janeiro and Mumbai. Last year it took 71 percent of the self-reported average income of just over $3,300 to get shelter in Dubai. This year’s proportion was 47 percent. The only cities where housing was cheaper relative to income than in Dubai were Houston and Riyadh, Saudi Arabia. Globally, Toronto’s costs posted the biggest jump from a year ago in the index, which analyzes more than 100 municipalities worldwide. Canada’s financial hub surged 18 places to rank 28th globally in the survey, while Vancouver had the second- largest leap - 16 spots to 16th overall. Canada was a bargain, though, compared to Hong Kong and San Francisco which maintained their positions as the world’s two most expensive cities, based on four equal-weighted factors that comprise the index - the average monthly mortgage on a 1,000 square-foot home downtown, payments for a similar unit in the suburbs, and rents for a three-bedroom apartment in the city-centre and on the outskirts of town. New York, London, Geneva and Singapore rounded out the top 6 in total costs, though there was minimal movement from a year ago in the top tier. But no city was close to Hong Kong for breaking the bank accounts of loan-assisted buyers. A typical 1,000 square-foot home in the city centre commanded an average mortgage payment of nearly $8,000 per month, according to Bloomberg-analyzed statistics from Numbeo.com, a database of cost-of-living statistics contributed by users. China’s capital Beijing and financial hub Shanghai each moved into the top 10 this year thanks mainly to surging prices faced by buyers of downtown units. In 15 of the 100-plus municipalities surveyed, the monthly housing cost for units used in the analysis would be at least double an average income. Buenos Aires, Kiev and Mumbai led the "impossible dream" pack. * With Bloomberg Source: Arabian Business Back to Index

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BIG BUSINESS NAMES RUSH TO FILL DIFC'S THE EXCHANGE Friday, October 05, 2018 The latest addition to the real estate at Dubai International Financial Centre (DIFC) is proving a big hit with tenants – with 98 percent of office space at The Exchange already leased. Completed in March 2018, The Exchange, part of Gate Village, is set to be home to the regional headquarters of numerous global names, including Nasdaq Dubai and Alsharq News Services. DIFC said the speed at which nearly all of the 114,000 sq ft of office space at The Exchange has been snapped up is an affirmation to its position as the financial centre of choice in the region. Arif Amiri, CEO of DIFC Authority, said: “The Exchange is bringing world-class office experience to our tenants. We are seeing more international companies move to Dubai, or expand their presence here, which demonstrates the growing importance of the Emirate, and DIFC, as a global investment and finance hub.” Among those that moved into The Exchange is Nasdaq Dubai, which has expanded its current presence in DIFC. As part of its expansion, Nasdaq Dubai is home to MarketSite, which features an event space for market-opening bell-ringing events drawing global visibility, where a wide range of organisations and individuals can make key announcements to the world. Hamed Ali, CEO of Nasdaq Dubai, said: "The Exchange provides us with flagship premises and first class facilities as we expand our product offerings and global investor base. MarketSite is a powerful platform for our issuers, market participants and others in the financial services community to tell their story to the world." Another tenant at The Exchange is CNBC International, a leading global business and finance news network, which is expanding its Middle East operations with a new base at MarketSite and will open later this month. In addition, Alsharq News Services, the future home for Bloomberg Asharq Television, radio and other news outlets will be moving to The Exchange building. The development also includes The Exchange Square, a landscaped piazza, serving as an extension of the existing Gate Village podium, and three licenced restaurants. Source: Arabian Business Back to Index

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BANK LAUNCHES HOME LOANS FOR NON- RESIDENTS TO BUY IN THE UAE Friday, October 05, 2018 UAE-based Emirates Islamic has announced the launch of home finance solutions to help non-residents purchase property in the UAE. Investors residing in Kuwait, Oman, Bahrain, Saudi Arabia, India, the United Kingdom, China, Hong Kong and Russia can now avail finance up to 50 percent of their UAE property value for a 25-year tenure, the bank said in a statement. Wasim Saifi, deputy CEO - Consumer Banking and Wealth Management at Emirates Islamic said: "We are extremely delighted to introduce home finance solutions to non-residents, helping them take the first step towards owning a property in the UAE. "Dubai remains one of the world’s top destinations for second-home owners and investors alike. Through initiatives such as the Dubai Land Department’s Dubai Property Show and the availability of financing options, overseas investors will find it much easier to realise their dreams of purchasing a property in Dubai.” He said that customers applying for home finance can also benefit from fast-tracked documentation. The launch is aligned with the bank’s strategy to expand its retail banking proposition, he added. Source: Arabian Business Back to Index

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DUBAI PROPERTY MARKET TO IMPROVE IN 2019, SAYS ASTECO Thursday, October 04, 2018 Dubai’s property market will show signs of improvement in 2019 compared to 2018, according to Elaine Jones, the executive chairperson of Asteco, the Middle East’s largest real estate services company. “We’ve got 2020 coming, so there are certain projects that need to be started, finished, concluded or developed,” she said on the sidelines of Cityscape in Dubai. “We know there will be quite a bit of activity.” Jones also pointed to the recent announcement of a record UAE federal budget for the next three years, “means that next year should be better than this year.” “But certainly, it’s been a period of consolidation. We see the number of companies that have merged, and the number of employment opportunities that have reduced,” she said. “We hope to see that reversed, but…that comes down to economic drivers. It’s [about] employment. We need people to have jobs to be able to make everything else worthwhile.” In a recently published report, Asteco said that the Dubai market has seen a “substantial” delay in project handovers, mainly as a result of project delays and overly ambitious handover schedules. The report added that because of the delays, a large number of units previously forecasted for completion in H2 of 2018 will only be ready next year. Source: Arabian Business Back to Index

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MARJAN CEO HOPES TO ATTRACT FDI TO 'UNTAPPED' LOCAL SECTORS IN RAK Thursday, October 04, 2018 Marjan’s development of freehold properties in Ras Al Khaimah will attract “significant” levels of foreign direct investment to the emirate, according to Marjan CEO Abdulla Al Abdooli. Earlier this week, Marjan announced the launch of its operations as the master-developer of RAK’s freehold property, as an independent entity tasked with leading freehold projects in the emirate. Speaking to Arabian Business on the sidelines of Cityscape in Dubai, Al Abdooli said Marjan hopes to attract and expand what he terms the “successful model” of Al Marjan Island, which has attracted residential and hospitality brands including Rixos, Hilton and Accor. “Ras Al Khaimah is moving towards a new business model,” he said. “We will attract foreign direct investment, but now not only just for tourism, but also for mixed-use developments, for affordable housing, for staff accommodations and for any type of urban development across Ras Al Khaimah.” Additionally, Al Abdooli said he hopes to attract investment in what he terms as “fields that are untapped with regards to FDI” in RAK, particularly offices and retail. Regarding RAK’s hospitality market, Al Abdooli said that more than 50 percent of the 15,000 additional hotel keys the government believes are necessary by 2025 will be located on Al Marjan, of which over 1,600 are and 4,000 in the pipeline in various stages. Source: Arabian Business Back to Index

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OPINION: HAS REAL ESTATE FINALLY TURNED A CORNER IN THE UAE? Friday, October 05, 2018 At last year’s Cityscape the focus was on affordability, which was a welcome step given that whole swathes of investors had for too long been priced out of the market. This imbalance has largely been addressed, with studios in Dubai now available for less than AED500,000 (though fear not, money-bags investors, a Burj Khalifa penthouse can still be yours for AED100m). But as one CEO told me recently when we were having the perennial State of the Economy conversation, simply dropping prices is not enough. “You still have to be offering a product or service that people want,” he said. New ideas Last week’s Cityscape was encouraging for exactly this reason. Imkan’s Aljurf was one of the most striking. For starters, it has been conceived as a second-home destination, which is a relatively new concept. (Kleindienst is billing its Heart of Europe as a staycation homes project, but with prices from AED15m-100m). Whatever the price point, developers must offer something new that people are actually excited to buy Then there is the location in Ghantoot between Abu Dhabi and Dubai, which is a beautiful and underused area. Spread along 3.4km of beachfront, and featuring two marinas, a wellness resort and serviced residences, it will have all the ancillary facilities needed to make it a real community. Also up that end of town, Marsa Meydan, in Jebel Ali, will have a climate-controlled marina to make it a year-round attraction. Waterfront villas with private pontoons will sit by a network of canals and the seafront, with hotels, shops and cafes lining the canals and boardwalk. Aljada in Sharjah might offer apartments for less than AED300,000 but is far from a budget location. Arada, the developer, announced Central Hub as its focal point, designed by Zaha Hadid Architects. Larger in scale than London’s Green Park, the car-free zone is designed to be walkable even during the summer and will include a public square, along with an outdoor cinema, food-truck village and skate park. And finally, Madinat Jumeirah Living is Dubai Holding’s pedestrian-centric, residential development, with shaded walkways, green spaces and limited car access. The project will include a community centre, daycare centres and parks, all connected to Souq Madinat via a footbridge. Clear objectives These projects have a few things in common. They’re all attempts to build real communities, with year-round, family-friendly attractions and outdoor spaces that have multiple uses. They are not characterised by endless blocks of towers, identikit suburbs divided up by busy roads, or golf courses accessible only to the few. Here are some other factors to consider. Second homes, located in vibrant communities, will be an attractive Airbnb option, making them a more profitable asset, and also widening Dubai’s tourism offerings. They’ll also be great locations for active retirees taking advantage of the new visa options. So there are lots of firsts here, which just leaves the six-million-dollar question: is there enough demand? Other issues addressed

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As noted on page 22, the topic on everyone’s lips at Cityscape was ‘oversupply’. Rera CEO Marwan Ahmed Bin Ghalita addressed this directly, saying it was for developers to judge. “There is always an economic cycle and this industry is in the hands of the developers and whatever they want to offer to the investor.” That’s not passing the buck. Property CEOs are grown-ups who have to make their own decisions about the market. And it seems they have concluded that there is long-term demand. Judging by these projects they have also realised that you cannot just throw more of the same at the city – they must be inventive, bold and also realistic about what investors are prepared to pay. I’d argue, then, that Cityscape moved us on from last year where the focus was simply on price. Finally there is an acknowledgement that, whatever the cost, developers must offer something new that people are actually excited to buy. Simple, right? Source: Arabian Business Back to Index

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SOBHA TO MAKE ANNOUNCEMENT ON $6.8BN UAQ PROJECT 'SOON', SAYS PRESIDENT Thursday, October 04, 2018 Sobha chairman PNC Menon said the company has “decided not to proceed” on the project, which was first announced in 2016. Dubai-based Sobha Group has refused to confirm or deny media reports that the company has shelved plans for the $6.8 billion (AED25bn) Firdaus Sobha joint venture with the Umm Al Quwain government, saying only that an announcement would come “soon”. On Tuesday, Zawya quoted Sobha chairman PNC Menon as saying the company “decided not to proceed” on the project, which was first announced in 2016. “Decisions are very dynamic…we decided that for the time being, Sobha should not continue with the project,” he is quoted as saying. “It was beautiful land, but at the end of the day, decisions have to be taken purely on the reality.” When contacted by Arabian Business, Sobha president Jyotsna Hedge refused to confirm or deny the report, stating only that a Sobha and the UAQ government would make a joint statement “soon.” Sobha Group, Umm Al Quwain to build $6.8bn island resort Firdous Sobha’ will position Umm Al Quwain as new UAE tourist destination, according to Sheikh Rashid, Crown Prince of Umm Al Quwain Firdous Sobha was originally envisioned as a 53 million sq ft luxury seafront villa community, with hotels, resorts, apartments, boutique shops, an 18-hole golf course, a water sports centre and a wellness spa. At the time, Sobha stated that the development was intended to kickstart the emirate’s emergence of a commercial and tourist attraction. Sobha Group is currently working on the $4 billion Sobha Hartland and the $8.5 billion District One, both in Dubai. Source: Arabian Business Back to Index

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NAKHEEL LAUNCHES NEW LUXURY HOMES IN DUBAI'S JUMEIRAH PARK Wednesday, October 03, 2018 With almost 21,000 residents, Jumeirah Park is one of Nakheel’s most established communities, featuring over 3,000 luxury villas nestled among parks and communal green spaces across a total 380 hectares. A new collection of 147 luxury four-bedroom terraced homes at Jumeirah Park – each with their own garden complete with private swimming pool – was launched by master developer Nakheel on Wednesday. The first of their kind at Jumeirah Park, the high-end homes boast spacious terraces including an extensive rooftop entertainment area, four and a half bathrooms and a double garage. Prices start at AED3.4 million. Construction of the new Jumeirah Park homes is expected to begin in early 2019, with completion in the first quarter of 2021. With almost 21,000 residents, Jumeirah Park is one of Nakheel’s most established communities, featuring over 3,000 luxury villas nestled among parks and communal green spaces across a total 380 hectares. The high-end community is also home to Nakheel’s first neighbourhood retail Pavilion, which opened in 2014, while Jumeirah Park’s new Clubhouse, sports and leisure complex, complete with Olympic-size swimming pool and spa, will break ground this month. The Jumeirah Park homes are among a host of Nakheel residential, retail and hospitality projects on show at Cityscape Global. Source: Arabian Business Back to Index

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$171M CONTRACTS AWARDED TO COMPLETE DUBAI EXPO 2020 ROADS NETWORK Saturday, October 06, 2018 Over the past few months, the RTA had previously awarded four contracts for the improvement of roads leading to the Expo 2020 site. Two contracts worth AED630 million ($171.5 million) have been awarded by Dubai's transport authority for the construction of roads leading to the Dubai Expo 2020 site. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has called for the immediate start to the work. The Roads and Transport Authority (RTA) has awarded contracts of the final two phases (5 and 6) of roads which will include improvements to both Jebel Ali-Lehbab Road and the intersection of Emirates Road with Jebel Ali- Lehbab Road. Mattar Al Tayer, director-general and chairman of the RTA, said: “The improvement of roads leading to Expo is one of the big projects currently undertaken by RTA to serve the needs of hosting Expo 2020 in Dubai. Due to the massive nature of the project, it had been split into six phases to ensure the timely completion of works, well before the opening of Expo. Contracts for the previous four phases had already been awarded.” Phase 5 covers the construction of bridges extending 2.6km and roads running up to 3km while phase 6 encompasses the construction of bridges extending 1.4km and roads of 8km. Over the past few months, RTA had previously awarded four contracts for the improvement of roads leading to the Expo 2020 site. Source: Arabian Business Back to Index

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WO RK SET TO START ON MANDARIN ORIENTAL, MUSCAT Friday, October 05, 2018 Eagle Hills Muscat has awarded a contract for the excavation, shoring and piling works for its Mandarin Oriental, Muscat project to foundation engineering company HSSG. The project, being developed by Eagle Hills Muscat, a partnership between Eagle Hills Abu Dhabi and Izz International, will be managed by Mandarin Oriental Hotel Group. Mandarin Oriental, Muscat — set to open in 2021 — will feature 150 guestrooms and suites, five restaurants and bars, the Spa at Mandarin Oriental, and an outdoor swimming pool. The project will also comprise 156 residences that are being introduced for the first time in the region and will feature some of the most select private apartments in the capital, a statement said. Low Ping, CEO of Eagle Hills, said: “The Residences at Mandarin Oriental, Muscat will provide the first high-end branded residence in Oman. Located in a prime city location on the beach, the development will offer the height of living and feature a beautiful low-rise architectural design inspired by Oman’s cultural legacy. "In order to deliver upon our quality promise, we will be working with the experienced team at HSSG, which shares our dedication to delivering the very best in the market.” Abu Dhabi-based Eagle Hills is currently developing projects in Bahrain, Jordan, Morocco, Oman, Serbia and the UAE. Source: Arabian Business Back to Index

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NEW HOTEL AND ENTERTAINMENT PARK HEADING TO RAS AL KHAIMAH Wednesday, October 03, 2018 UAE-based Indian investor Ivan Richard Menezes, left, has announced the launch of a new $200 million, 300-room hotel and entertainment park on Al Marjan Island. UAE-based Indian investor Ivan Richard Menezes has announced the launch of a new $200 million, 300-room hotel and entertainment park on Al Marjan Island, the latest step in Marjan’s goal of having 8,000 available hotel rooms on the island by 2025. The entertainment park will be history-themed and will include fitness elements, Menezes, the director of United Ventures and Investments Limited, announced on Wednesday. In a statement, Marjan managing director and CEO Abdulla Al Abdooli said that “the announcement underlines Marjan’s focus on welcoming inward investment to develop freehold property with a focus on mixed-use projects that add considerable value to the economy.” Currently, Al Marjan has more than 1,600 operational hotel keys in the Rixos, Hilton and Accor hotel brands. Speaking to Arabian Business at Cityscape in Dubai, Al Abdooli said that, eventually, more than half of the 15,000 additional hotel keys necessary in Ras Al Khaimah by the time it achieves it’ goal of attracting three million visitors by 2025 will be on Al Marjan. Al Abdooli said that another 4,000 hotel keys are currently in the pipeline. “This by itself shows you we are really reaching our target in Al Marjan, which is 8,000 hotel keys. It’s coming. It’s a matter of time. We target completion by 2025,” he said. “It’s not that fast when compared to the number of hotels that are expected....in terms of a supply, it’s a natural growth. It’s not a [large] volume of hotels opening at one time.” He added that he believes the growth of Al Marjan is reflective of the pace of growth of Ras Al Khaimah, which he said “is steady, balanced and matching the supply and demand.” Earlier this week, Marjan announced the launch of its operations as the master-developer of freehold property in Ras Al Khaimah as an independent entity responsible for leading the development of freehold projects in the emirate. Source: Arabian Business Back to Index

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DUBAI DEVELOPER LAUNCHES WASL GATE PROJECT ONTO FREEHOLD MARKET Wednesday, October 03, 2018 wasl Asset Management Group, one of the largest real estate companies in Dubai, has officially released wasl gate onto the freehold property market. The launch follows the success of wasl1, the company's first freehold master development next to Zabeel Park. The company also announced that sales for The Nook, which represents the first two buildings of the development, will start on October 8. The buildings are located within the larger wasl gate development in Jebel Ali. Stretching across 1.23 million square metres, wasl gate will provide 257 townhouses and around 6,500 apartments upon completion. The project will feature pedestrian areas and will also include a new mall by Al-Futtaim, and Dubai’s second IKEA. The developer also said wasl gate will be supported by a sports complex, an international school and a central park that will link the commercial and residential districts within the project. Hesham Al Qassim, CEO of wasl Asset Management Group, said: “wasl gate is designed to provide a wide array of offerings for Dubai residents, while striving to develop and expand our real estate portfolio. "At wasl, we are constantly seeking to ensure added-value to our customers with each of our unique projects by offering them new concepts with attractive investment options. We had already confirmed this commitment in wasl1, and the wasl gate project will be a continuation of this approach.” Source: Arabian Business Back to Index

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DEVELOPER GEMINI STARTS HANDOVER OF MAIDEN DUBAI PROJECT Wednesday, October 03, 2018 Gemini Property Developers, a boutique real estate developer based in Dubai, started Splendor construction in 2016. Gemini Property Developers has announced that it has started to hand over units in its maiden residential project in Dubai. Buyers of homes in Splendor, a AED300 million ($81 million) project at Sobha Hartland within the Mohammed Bin Rashid City, have started moving in, the company said in a statement. The residential building spans a built-up area of over 320,000 square feet, which includes 134 residential units comprising spacious one, two and three-bedroom apartments, penthouses and townhouses. Gemini Property Developers, a boutique real estate developer based in Dubai, started Splendor construction in 2016. Sudhakar Rao, chairman of Gemini Property Developers, said: “Despite high competition and challenging times in Dubai’s real estate sector, we are delighted that we are able to fulfill on-time construction commitment to our investors. It is a big day for us." At Cityscape Dubai 2018, the developer is also exhibiting the new 29-storey Symphony project in Dubai’s Business Bay. Off-plan sales in the project have not yet started. Gemini’s Symphony project will house 455 apartments and will also include smart home technologies, gym, yoga lawn, swimming pool, rooftop BBQ, jogging track, kid’s play area and retail stores. The project is slated for completion before the start of Expo 2020 which begins on October 20, 2020. Source: Arabian Business Back to Index

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IBIS DUBAI AL BARSHA PLANS MAJOR RENOVATION PROJECT Saturday, October 06, 2018 Ibis Dubai Al Barsha Hotel, part of the Accor Group, has announced renovation plans for the months ahead. The three-star property will undergo a four-month makeover of the ground floor and lobby area, set for completion and launch in December 2018. Throughout the transformation, the property will remain open for business as usual, with minimal disruption to guests, a statement said. The planned upgrade will include a new reception area, a gym, along with the enhancement of the hotel's facilities, with the addition of meeting rooms. The hotel is also set to introduce an exclusive new restaurant and bar concept. Robin Solomon, hotel director of ibis Dubai Al Barsha said: "We are very excited to announce the ground floor and lobby makeover. The ibis Dubai Al Barsha has been a prominent feature of Sheikh Zayed Road since 2009 and we are thrilled to be upgrading our offering. "An important factor for us is to reassure our guests that the hotel will remain open throughout this period, with a precise strategy in place to cause little to no disruption to travellers and diners alike." Ibis Dubai Al Barsha offers 480 rooms. Source: Arabian Business Back to Index

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UAE'S ROTANA LAUNCHES FIRST SAUDI HOTEL UNDER NEW DEAL Saturday, October 06, 2018 UAE-based hotel operator Rotana and Al Diyar United have announced the launch of Centro Salama Jeddah, the first hotel project to be funded and developed in partnership with the Saudi-based real estate developer. The new hotel, which is the second under the Centro by Rotana brand in Jeddah and the third in the kingdom, features 189 rooms and suites. Al Diyar United Company CEO, Muaz Yassine Kadi, said the success of this project demonstrates the benefits of the partnership between Al Diyar United Company and Rotana Group. “This project confirms our position as one of the leading real estate developers in the Kingdom, where we have other projects across many sectors. Now, we look forward to continuing our partnership with Rotana by establishing additional developments in the near future,” he added. Rotana chairman, Nasser Al Nowais, said: “We are proud to play in a role in the kingdom’s growth and contribute to the realization of the ambitious Vision 2030. In addition, Rotana is empowering Saudi nationals by hiring, training and developing national talent within different departments across all our hotels in the kingdom.” Centro Salama Jeddah is the 10th hotel launched under the Centro by Rotana brand in the region. It is the group’s fifth hotel in the kingdom, all of which supply the Saudi hospitality market with more than 1,300 hotel units. Three new hotels are currently under development in the country, which will add a further 780 rooms. Centro Salama Jeddah also offers seven meeting rooms, health club, a pool for hotel guests, and two restaurants. Source: Arabian Business Back to Index

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DUBAI EXPANDS TOURISM AMBITIONS, SETS NEW TARGET FOR 2025 Friday, October 05, 2018 Building on the efforts to attract 20 million tourists annually by 2020, the year of Dubai Expo, Dubai Executive Council has now revealed new targets. Dubai has extended its tourism ambitions, announcing new targets for attracting visitors to the emirate up to 2025. Building on the efforts to attract 20 million tourists annually by 2020, the year of Dubai Expo, Dubai Executive Council has now revealed new targets. The Council’s members witnessed a presentation by the Department of Tourism on its directives and commercial marketing strategy, which aims to increase the contribution of the tourism sector to the emirate’s economy. Its new goals include attracting 21-23 million visitors by 2022, and 23-25 million visitors by 2025. The Council, chaired by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, heard that the emirate will achieve its goal to be the most-visited city in the world, through adopting ambitious development plans, initiatives and projects that will make it a preferred tourism destination for millions of people around the world. "These plans and strategies to strengthen the tourism sector reflects our efforts to promote Dubai’s stature in international tourism forums and make it a favoured destinations for tourism, business and events, through ambitious initiatives that aim to achieve sustainable growth and guarantee our international competitiveness, which will enable Dubai to deal with the changes witnessed by economic sectors and international markets," Sheikh Hamdan said in comments published by state news agency WAM. The Department of Tourism’s strategy is based on the theme of "Only in Dubai" plus promoting the city’s attractiveness as a leading business destination. Dubai welcomed a record 8.10 million international overnight tourists during the first six months of 2018, according to figures released in August. Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) said the emirate’s tourism sector was now worth AED109 billion ($29.6 billion) a year as at the end of 2017. Top source markets continued to witness stable year-on-year performances in the first half of 2018, with India, Saudi Arabia and the UK retaining their top three positions when compared to the same period last year. Source: Arabian Business Back to Index

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INDONESIAN HOTEL GROUP INKS DEAL TO MAKE SAUDI DEBUT Friday, October 05, 2018 The first hotel being developed under this agreement will be the 560-room Jabal Omar Grand Aston which is due for completion in July 2019. Indonesia's largest hotel group has announced the signing of a long-term master franchise agreement to launch three of its brands across Saudi Arabia. The agreement between Archipelago International and Jeddah-based Warifat Hospitality Limited, a subsidiary of Jabal Omar Development Company (JODC), grants development and branding rights to Warifat for three of Archipelago's hotel brands - Grand Aston, Aston and Harper. It will enable the roll out of these brands, not only at JODC's flagship development in Makkah but throughout Saudi Arabia, a statement said. The first hotel being developed under this agreement will be the 560-room Jabal Omar Grand Aston which is due for completion in July 2019 and will be Archipelago's first hotel in Saudi Arabia. "In strategic terms, this is an historic agreement for our company and indeed for Indonesia, as we will be the first Indonesian based hotel company to enter the kingdom's hotel market," said John Flood, president and CEO of Archipelago International. "This agreement foresees and caters for significant growth from the Indonesian market and it recognizes Archipelago as the hotel group best positioned going forward to cater to the growing numbers of Indonesian and Southeast Asian visitors to the Kingdom," he added. Yasser Faisal Al-Sharif, chairman of Warifat Hospitality and CEO of JODC said: "We are excited to expand our partnership with an established and leading home-grown Indonesian hotel brand... We are committed to offering our guests from Indonesia, Malaysia, Brunei and SE Asia superior hospitality experiences that are customized to their specific needs whilst they visit the Great Mosque of Makkah, Masjid Al Haram and the holy capital." Source: Arabian Business Back to Index

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FOR ESHRAQ, IMMEDIATE FOCUS IS BUILDING ITS LAND BANK Saturday, October 06, 2018 Abu Dhabi-based Eshraq Properties has shelved merger and acquisition plans in favour of developing its own projects. This, after it failed to reach a deal to merge with Reem Investments. Ajit Joshi, a member on Eshraq’s board of directors and investment director at ADCM Altus Investment Management, said Eshraq is instead focusing on developing its land bank as soon as possible. His comments come after Eshraq in late June said it is dropping plans to merge with Reem; a deal that would have created Abu Dhabi’s second largest listed property developer. A statement at the time said the process could not be completed, as the two parties “have not been able to agree on major commercial matters underpinning the deals.” Speaking to Gulf News, Joshi said there were “valuation differences between the two companies.” The deal, if completed, would have seen Eshraq acquire all of Reem’s assets in return for new shares issued to Reem investors. No cash would have been involved in the transaction. “We may have certain expectations, the Reem board or shareholders may have certain expectations, and sometimes they don’t match,” he said. Two days after Eshraq announced it was dropping the Reem plans, the company had said it was still eyeing acquisitions, adding its excess liquidity “remains ideal for acquisition of income-generating assets.” But Joshi said while Eshraq is still interested in acquiring new properties, it is currently not in any talks about pursuing any M&A deals. “Now is a good time to invest in distressed assets, so we’re looking at what can generate income and that we can acquire.” The company is developing three projects; two in Abu Dhabi and one in Dubai. In the capital, Eshraq is developing a residential tower that is to be completed in the second quarter of 2020. Located on Reem Island, it has a development cost of Dh200 million. Eshraq is also in the design phase of another residential project in Abu Dhabi, with the units available on sale to Emiratis. Located in Between the Two Bridges, the project could cost Dh800 million to Dh900 million. In Dubai, the company is developing the first phase of a project that will include two residential buildings and one for hotel apartments. Construction in Jumeirah Village Circle will start soon, and is expected to take 30-32 months, with a cost of about Dh350 million. Asked about higher supply and slow demand pushing rents and property prices down, Joshi said he expected to see an improvement soon. “Where we see prices right now is they’re very close to the cost of construction plus what we would call a healthy margin for a developer,” he said. “I think by early next year, we should start to see the green shoots in the industry. We’re actually already seeing them, with rents stabilising, at least in our properties. Eventually, the cycle will stabilise and it will reach a healthy supply/demand level.” As for financial outlook specific to Eshraq, the developer is expecting an uplift from investment income this year. In 2017, Eshraq reported a net profit of Dh32.2 million, a spike from the Dh301 million in losses in 2016.

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In its latest financial statement, the developer recorded Dh14.7 million in profit for H1-2018, compared to Dh318 million in losses in 2017. By the end of this year, if Eshraq is generating net profit as expected, it will look at giving out dividends, Joshi said. Source: Gulf News Back to Index

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SHORT -STAY HOMES PROVIDE SILVER LINING FOR DUBAI’S LANDLORDS Thursday, October 04, 2018 Finding it difficult to rent out your brand new property? Then try the short-term. And not just through airbnb. Dubai’s property market is starting to see a multitude of businesses/portals that offer short-term rental options. Rather than think one-year tenancy contracts, landlords too are changing their mindsets to go with anyone willing to sign on for five days or more. For the wider market too, short-term stays are proving a welcome boost because the last thing anyone needs to see are brand new apartments and villas sitting empty waiting for a full-year tenant to show up. Vinayak Mahtani“A studio could be rented for $70 (Dh257) a day and a villa for $1,000,” said Vinayak Mahtani, CEO of bnbme, a recently formed holiday home management company. “It’s a misconception that holiday homes are cheaper than hotels — it ultimately depends on what you plan to offer the stays with.” His company specialises in the upper tier of short-stay vacations, with under 30 properties in its portfolio. This includes access to some of the Fairmont residences out there on the Palm. The plan is to add a further 15-20 properties to the company’s leasing portfolio by year-end. So, is the demand for short-stays coming from tourists wanting to catch the sun? Or a business traveller? “The type of demand depends on where the property is,” said Mahtani. “On the Palm, 90 per cent of the short-stay demand is generated from tourists. And even from within the UAE, from families wanting a bit of a getaway spot but without leaving the emirate. Some of the villas are booked for the private pools and family gatherings. “At JLT (Jumeirah Lake Towers, demand generation is 80 per cent from those here on work-related purposes or new employees still searching for a permanent accommodation in the city. These stays tend to average a couple of weeks. “At the Downtown, another popular spot for a slightly premium short-stay, demand type is 50:50 between tourist and business traveller.” Manika DhamaAccording to Manika Dhama, Associate Partner at the consultancy Cavendish Maxwell, “The trend of short-term rentals has improved since the revised regulations from DTCM (Dubai Tourism & Commerce Marketing) in 2016 on holiday homes, which allowed individual home owners to work directly with DTCM rather than through operators. “At the end of 2016, DTCM had announced that more than 1,800 such units had been approved and were operational. “Lease term with tourists mirrors the average length of stay within the wider hospitality offerings in Dubai, which is around 3.5 days. Other longer terms of about a week or more also exist, and these are usually from new entrants to the job market who’re awaiting their permits and papers before moving into regular residential accommodation.” Dhama reckons that this category can expect even better days all through the run up to Expo 2020. Individual owners could either place their units with existing operators or obtain individual licenses from DTCM.

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For those targeting the pleasure-seeking clientele who want experiences much more than what a hotel stay can offer, seasonality counts. “In recent weeks, the demand was from the Chinese, with the autumn festival on, and next few weeks will see demand from India ahead of Diwali,” said Mahtani. “Then the peak season beckons with Europe being the most likely source of demand from November through January.” Mahtani’s firm does not directly own any of the properties in its portfolio. What about competition from an airbnb in the future? “Airbnb is one of the sites we do business with, but there are certain target markets where travellers don’t use airbnb at all,” he added. “We have multiple alliances with sourcing portals, and that’s been working for us.” The ins and outs of offering short-stay properties For landlords it is both a measure of reducing void periods and netting higher overall returns, even with the set- up costs involved. “This could include service charges, utilities, annual maintenance fees, DTCM and building management fees, insurance, supplies, operator fees (20 per cent of rental), furnishing and marketing costs,” said Manika Dhama at Cavendish Maxwell. “While the calculation of net returns varies for each building and apartment type, the comparison is between all the above costs against the chargeable hotel rate per night, assuming around 60-65 per cent occupancy in the current market. “In popular locations and buildings where this expected net income is higher than the annual rent for a regular apartment, landlords can choose the short-term rental option.” Source: Gulf News Back to Index

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BUILDING THE UAE’S NEXT MEGA COMMUNITIES Thursday, October 04, 2018 The main reason residents are attracted to master-planned communities is the holistic approach to all elements of lifestyle in such projects. According to Nathan Hones, COO and partner at Carter Associates, that means residences sprinkled with natural parks, evenly distributed leisure facilities with supporting retail and food and beverage offers, places of worship spaced appropriately for accessibility, and so on. “Dubai is a transient city, with an expatriate workforce of 80-85 per cent of the overall population,” he Hones. “Therefore, the more attractive, enjoyable, beneficial from a wellbeing perspective developers can make their community developments, the more likely residents are to stay.” Hones explains bigger is not necessarily better when building a master development. “It’s not that a development absolutely has to be a mega community, but it does have to engage with the resident on a number of levels -- community, family, social, economic, environmental, religious, etc. -- and mega communities typically have a multilayered, master-planned solution, which brings all of these considerations together.” Design aspect Transcending the purely transient mindset of many expat residents during the founding years of the UAE in the 1970s, many people now come to Dubai attracted by its lifestyle, safety and security, as well as better job and professional development opportunities, resulting in expatriates staying in Dubai for much longer. “Long-term residents here want to live in communities that offer economic vitality, embed smart infrastructure, promote environmental sustainability and the exchange of cultures, celebrate social values, encourage wellness and engage the community,” says Aarathi Muralidharan, senior urban designer at Perkins+Will. “A vital feature of a mega community project is that it has all the amenities that residents want and need for them to be able to live, work and play within that community.” A mega community should not be solely defined by its size, Muralidharan says, but “there must be enough within the community for it to be self-sufficient”. She adds that the framework of mega community projects should be based on urban resiliency and cultural fit. “Ideally, these community developments will offer a mixture of buildings. They don’t have to be only villas or only high-rise apartment buildings,” says Muralidharan. “They should provide both. There should also be a mix of buildings to fit multiple price ranges, residential and commercial. These communities will offer options across different economic and social classes and will appeal to diverse cultures.” Citing a UN report, Muralidharan says 60 per cent of all urban dwellers will be under the age of 18 by 2030 -- an important consideration in the design of master developments. “The challenge for designers and developers is to collaborate not only to create a balance between market trends and place making, but also to design mega communities that foster urban childhoods and create stimulating and playful spaces, learning environments and fantastic education facilities.” Moreover, communities are becoming more compact and dense, creating opportunities for people to live, work and play all within walking distance. “By removing the need to spend hours commuting to and from work, people have more time for community interaction and healthy living,” says Muralidharan.

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Here are some of the UAE’s upcoming master developments and how they satisfy the evolving needs of the country’s multicultural inhabitants.

Dubai Creek Harbour Located along the historic Dubai Creek, Dubai Creek Harbour will be home to more 200,000 people once completed. The master development will also feature tourism, retail and hospitality developments in the various sub-communities. Dubai Creek Harbour will welcome its first residents early next year in Creek Island Dubai, a six- tower residential development with apartments. Creek Marina at Dubai Creek Harbour “The project will include exceptional residential towers, a vibrant new precinct that ushers in the future of retail -- Dubai Square,” developer Emaar said in a statement, referring to a recently announced 2.6-million-sq-m retail, hospitality and entertainment district in Dubai Creek that will obliterate existing global records in retail development in terms of gross leasable area and total size. The master development will also have a yacht club along with parks, green spaces and promenades in a nod to Dubai’s commitment to build “happy communities” for residents. Emaar further describes Creek Harbour as an “ideal family and tourist destination” with world-class hotels, schools, hospitals and recreational facilities. Another fascinating feature of the development is the Dubai Creek Tower, which is set to redefine Dubai’s skyline as the emirate’s next tallest tower, featuring multiple cutting-edge observation decks with 360-degree views. Tilal Al Ghaf According to Hawazen Esber, CEO of Majid Al Futtaim -- Communities, the project’s developer, Tilal Al Ghaf is community development that will offer an “unrivalled recreational amenities” to its residents. It is a big claim, but with a 70,000-sq-m swimmable lagoon, complete with white sandy beaches, as well as landscaped parks, public spaces and walking and cycling paths, Esber believes the project is loaded with the kind of amenities residents can truly aspire for. Esber adds that there will also be a resort-style mixed-use precinct set on the shore of the lagoon that will host an eclectic mix of shopping and dining options. A 70,000-sq-m swimmable lagoon will be a prominent feature in Tilal Al Ghaf Residents of the community can avail of an exclusive membership programme that will give access to premium amenities, including a community club with a range of fitness and well-being facilities, social areas and special- interest activities such as art, cooking classes and other personal development workshops. Sustainability will also be a core element in the development. “The community will set new benchmarks for lifestyle and sustainability in the market, with extensive green spaces, and will be the first project of its type to achieve BREEAM ‘very good’ sustainability accreditation,” says Esber. Makers District An 18-hectare mixed-use development on Reem Island in Abu Dhabi, Makers District is a lifestyle-themed community that is designed to enhance social interaction and collaboration, nurturing a dynamic and engaging environment for both residents and visitors. “Makers District will be the very first hub for creatives and home to start-ups as well as established companies, entrepreneurs and thought leaders, artists, makers and creators,” explains Walid El Hindi, CEO of Imkan Properties, the project’s developer. Pixel is one of the first two projects in Makers District

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Eyed to be a new haven for creative professionals in the UAE capital, Makers District will comprise three phases, all to be completed in 2024. Under the first phase, two key developments are set to take shape. “First is the Artery, a multiuse, versatile space that can be transformed to host diverse events, and will be home to pop-up retail units and makers’ workshops,” explains El Hindi. “Another is Pixel, poised to become a dynamic and self-contained urban neighbourhood, featuring seven towers comprising apartments, co-working office spaces, as well as food and beverage and retail elements.” Explaining the master development’s design approach, El Hindi adds: “We believe in building the negative space before the positive; which is why we design a community’s public realm before we start designing a development’s buildings. As part of this priority, 80,000 sq m of public landscaping will feature beaches, a saltwater pool, waterfront promenades and other water features that enhance the spirit of well-being.” Set to include 3,700 residential units accommodating some 8,000 residents, Makers District will be entirely walkable and accessible, says El Hindi. “Resident and visitor happiness are at the core of the community’s master plan, with the optimal use of green spaces, public event plazas, activity lawns and gardens that will foster an amazing community spirit and encourage interaction.” Source: Gulf News Back to Index

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BUDGET PLANNING 101 FOR FIRST-TIME HOMEBUYERS Thursday, October 04, 2018 Purchasing your own house is definitely exciting, especially for first-time buyers. However, the paperwork and finance can be daunting and it is important to have a well-thought-out budget plan. Planning a budget helps to stay within limit and not end up spending extravagantly. It should ideally start around five years prior to your first home purchase, depending on your financial circumstances. Here are some techniques to help plan your budget for your first home. Get financial statements The first and foremost step of planning a budget is listing your assets and incoming cash flow. Gather all financial statements that include bank balance, investments, bonds and other income sources like equities. Make a note of the total assets you possess and list down your monthly income as accurately as possible. Check savings and expenses After determining your income sources, make a list of the outgoing cash flow, including monthly expenses on house rent, utilities, groceries, debts, credit card bills, entertainment and shopping. Check for left-out items by tallying average amounts that actually end up as your savings. Budget plan A budget plan is more a game of balance sheets than income statements alone. At the end of the day, it’s not what you earn, but what you save that counts. Unless your income is equal or more than your expenses, you’d definitely need to cut down on the non-essentials and make way for savings. Considering a few major expenses like house rent, travel and living, one should plan to save for buying a house. It’s important to keep in mind that such plans will vary drastically for each one -- most significantly by income, expenses and financial habits. We break down the costs and plan the budget for three different income groups -- Dh15,000, Dh25,000 and Dh40,000. All the equated monthly instalment (EMI) values are approximated and for illustration only. To simplify the calculations, profits gained on the down payment savings are not considered. Monthly income: Dh15,000 As shown in Table A, if you have an expense of Dh12,000 for a monthly income of Dh15000, you save Dh36,000 a year. If you are planning to purchase a property worth Dh700,000, it would take you around five years to accumulate just the down payment.

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Once you move into your new house, you’ll save on your rent, and even if you pay half your previous rent amount as an EMI, you can square off the loan in roughly 15 years. You can even pull the throttle and close the deal in around nine years. Keep in mind that in all likelihood your income will grow with time, and this will get easier to achieve if you build a strict financial discipline in the first few years. Monthly income: Dh25,000 Table B applies to you if your monthly income is around the Dh25,000 mark and if you are planning to purchase a property worth Dh1 million. It would take three years to accumulate enough for a down payment if you are spending like most people.

Going by these calculations, you can easily square off your loan in nine years if you can save around Dh8,000 a month and give it all up on the EMIs. In case it sounds aggressive, you can close the loan in 13 years by depositing Dh6,000 a month in your bank. Monthly income: Dh40,000 Table C is for those who earn more than Dh40,000 per month and are in the lookout for a home worth Dh2 million. If you can save at least Dh8,000 per month, you should be able to bid adieu to the mortgage in about 22 years.

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If you’re able to keep your expenses in check for the long term, you can also close the loan in 12 years by paying an EMI of Dh12,500.

Understand ownership costs Several costs come barging in once you become a homeowner. From mortgage processing fees to the minor or major house renovations, you’ll need to maintain some funds at your disposal to make sure the sail is smooth -- since so far it would have been your landlord bearing the repair costs, property tax, cleaning, maintenance and painting. Decide on the property value you can afford and calculate the EMI to check the long-term viability of your plan. Work on savings Even though banks provide mortgage of 75-80 per cent of the property value, the remaining 20-25 per cent should be borne by you. Buyers also have to take care of the additional charges like processing fees, property registration fees and agency fees -- and you need to plan for them as well. Rather than breaking the emergency funds, savings can help in covering these costs. Put at least 20 per cent of your monthly income on down payment savings. Making some moderate-risk investment in gold, bonds and business that can provide decent returns can be of help. Improve credit score A home mortgage is definitely a huge financial assistance. Your existing debts should not be a hurdle for that. Try paying your credit card bills, existing loan EMIs on time and improve your credit score. Budget planning should be done a minimum five years prior, so there would be enough time to improve your credit score. Make sure you have a low debt-to-burden ratio, which will increase your chances of loan approval. Souri Guha is co-founder of MyMoneySouq.com. The views expressed here are his own. Source: Gulf News Back to Index

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SHAIKH HAMDAN VISITS FALCONCITY OF WONDERS STAND Wednesday, October 03, 2018 Shaikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai, visited today (Tuesday, October 2, 2018) the stand of Falconcity of Wonders LLC (FCW), the developer of the ongoing Falconcity of Wonders multipurpose mega project in Dubai, during its participation at Cityscape Global 2018 exhibition running from October 2 to 4, at the Dubai World Trade Centre. Shaikh Hamdan lauded FCW’s efforts in sustaining global interest in Dubai’s real estate landscape through its unique ‘World in a City’ project. HH Sheikh Hamdan was briefed on the latest updates on the project during the visit. The major highlight of FCW’s participation at this year’s edition of Cityscape Global is undoubtedly the Eastern Residences, a meticulously-planned gated community that houses contemporary, elegant, 5 and 6 master- bedroom villas with exquisite high-end finishing that are ideal for families of any size. Visitors to the FCW stand at the event are also taking advantage of the special offers, which include 0 DLD fees, 0 services charges for 5 years and flexible payment plans. Scheduled for delivery in September 2021, the villas come with a guarantee of AED 150,000 that will be paid to buyers annually in case of delay. Salem Almoosa, Chairman and General Manager, Falconcity of Wonders LLC, said: “Cityscape Global 2018 is the perfect platform for us to showcase the most recent addition to the Falconcity of Wonders, the recently launched Eastern Residences project. We conceived this project after considering various actual living scenarios of families that will reside in these units and the value proposition is reflected on all aspects. These villas reflect engineering excellence and thus offer a superior value proposition. Our confidence in the success of the project is further underscored by the highly positive response it continues to garner at Cityscape Global 2018.” Source: Gulf News Back to Index

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HOUSE -HUNTERS ON THE PROWL AS PRICES REMAIN COMPETITIVE Wednesday, October 03, 2018 Homebuyers continue to wield the upper hand as the region’s biggest real estate showcase, Cityscape Global, rolls into town. Residential price trends in the third quarter have again favoured consumers with sales prices down 4 per cent and rents for villas and apartments retreating by 3 per cent and 2 per cent respectively, according to research by property consultant Asteco. “There was a lower number of transactions and listings, mainly due to several reasons, including people going on holidays,” said Imran Hussain, director and head of residential valuations at Colliers International Middle East and North Africa (Mena). “Majority have already relocated in the second quarter of 2018 and existing owners successfully renegotiated their contracts downwards, which does not appear as a new listing and is not publicly available.”

Ivana Gazivoda Vucinic, head of consulting and valuations and advisory operations of Chestertons Mena, points out though that the secondary market has been more resilient in terms of transactional values and volumes compared with off-plan. “The slowdown in [off-plan] transactional activity is, in part, directly linked to reduction in the number of recent launches,” she said. While rents are down, Ali Siddiqui, research analyst at Reidin, says the market is expected to pick up “as the emirate prepares to receive an inflow of visitors in the run-up to the World Expo 2020”. Top areas There are certain areas, though, that have been affected more than others. In the apartment segment, Siddiqui said areas such as Jumeirah Lakes Towers, Discovery Gardens and Dubai Marina had the highest sales price decline on a quarterly basis, while Downtown Dubai and Jumeirah Village Circle had the lowest. In the villa segment, Palm Jumeirah and The Lakes had the highest drop in sales prices, while Arabian Ranches had the lowest quarterly decline. In terms of transaction, Mohammad Bin Rashid City, Dubailand and Business Bay are seeing the biggest gains so far this year. Fourth quarter

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The number of launches at Cityscape Global is expected to be minimal in this year as only 12,000 new units have been launched during the first nine months, against the 25,000 units launched during the same period last year, according to Reidin. “Even though the off-plan transactions have declined this year, the off-plan segment can be seen holding up strongly due to the financial mechanisms by developers to keep the segment attractive,” said Siddiqui. Moving forward, Colliers expects market activity and sentiment to improve in the fourth quarter. “It is actually the most interesting quarter as accurate estimates of the market performance would be revealed, which is mainly dependent on whether people actually travelled for the holidays or relocated,” said Mansoor Ahmed, director and head of healthcare, education, development solutions and PPP at Colliers. Source: Gulf News Back to Index

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AFFORDABLE HOUSING: FINDING THE RIGHT BALANCE Wednesday, October 03, 2018 Almost 82 per cent of residential transactions last year involved properties below Dh2 million, according to the Dubai Land Department (DLD). Nearly half of these transactions were for properties with prices under Dh1 million. Furthermore, 85 per cent of all transacted units were apartments. These figures provide clues to the profile of homebuyers in the market: budget-sensitive families and bachelors. “The market has certainly moved towards lower-priced units in recent years, with developers recognising this is currently the sweet spot in terms of demand,” says Craig Plumb, head of research at JLL Middle East and North Africa, noting how prices could remain attractive to the mid-income segment within the next several months. Historically, Dubai has lacked affordable housing options for low and middle-income families who have sought cheaper residential accommodation in the northern emirates, particularly in Sharjah and Ajman. However, Simon Townsend, senior director and head of strategic advisory and consulting at CBRE, notes that many developers have started focusing on this segment. Young professionals According to a conservative estimate, the UAE has over 820,000 middle-income households representing about 40 per cent of all households in the country, says Fred Durie, CEO of Nshama, which has launched Town Square Dubai, which targets the affordable housing market. Armed with this information, Nshama looks to address a pent-up demand from young professionals and entrepreneurs who earn around Dh15,000 per month. “Our strategy is to shift demand pattern by encouraging investors to move from rental homes to owning residences with all amenities nearby,” says Durie. The World Expo 2020 has served as catalyst for the wider involvement of small and large developers in the affordable housing movement. “Evidence dictates that demand for affordable housing will increase due to the considerable additional workforce requirements for Expo 2020, where 277,000 jobs are expected to be created,” says Cian Farah, CEO of Aurora Real Estate Development, which is developing a rent-only project called Lyra by Aurora in Warsan 4, between Dubai Silicon Oasis and Academic City, targeting young professionals in the affordable market segment. Lyra targets renting young professionals Expecting the demand for affordable housing to outstrip supply in the short term, Farah adds: “We have entered the affordable housing segment as there is a clear demand and requirement in the UAE market.” Dubai-based Sun and Sand Developers Group (SASD) handed over a pilot project, SunBeam Homes, in Dubai Industrial Park in May, where the company attempted to further stretch the limits of affordability. The result: ticket prices of Dh395,000 for a one-bedroom apartment and Dh475,000 for a two-bedroom apartment. “Now that the threshold for affordability is achieved, we think a lot of new customers will buy into such projects,” says Sailesh Israni, managing director of SASD. “We were able to rent out a one-bedder for Dh39,000 and two- bedders for Dh47,000.” Overcoming challenges

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While there is an increase in availability in the affordable housing segment, Farah says it is often the case that properties in good, accessible locations are not affordable. Furthermore, citing examples in Europe, he says that residential developments with smaller rooms but more generous public spaces are often more successful than those with only larger rooms. “A design aspect associated with affordable housing projects is that customers are happy with smaller units, as long as rental costs are minimised,” says Farah. This is a strategy SASD has adopted with SunBeam, which Sailesh says has worked well, noting how the project has attracted a number Emirati buyers looking for a second home near their work places or as an investment asset. Keys to affordability Dubai’s low-income housing policy announced last year highlighted the government’s commitment to addressing affordable housing shortages. However, for affordable housing projects to truly succeed, different stakeholders have to cooperate with the government. “We need to understand what people want,” says Mahmoud Al Burai, vice-president of the International Real estate Federation (FIABCI)-Arab Countries. “The government needs to have affordable zones in the city, not in a way that segregates, but integrates them within the city fabric.” Another key challenge is the price of land, although Townsend points out that the significant infrastructure work across Dubai has opened up newer residential areas where land prices are less of a barrier to developing affordable housing. Sustainable model A key question faced by the industry is how to make affordable housing a sustainable business model. Al Burai says developers need to think of the life cycle cost of a development, as well as value-added services, connectivity to public transport and affordable facilities such as education, health care and retail within the neighbourhood. Plumb says developers also have to strike a balance between price and size. “There are two major ways that developers can increase the affordability of their products: reducing the unit size and cutting the price per square metre,” he says. “There has been a definite shift towards smaller units as these can clearly be sold at a lower ticket price.” Ultimately, developers must also be mindful of their limitations. “They must not overextend themselves as this may impact deliverability, and potential investors are heavily focusing on developers who can meet their promised delivery dates,” says Farah. Source: Gulf News Back to Index

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PROPERTY BUYERS IN DUBAI WANT TO SEE COST SAVINGS NOW Wednesday, October 03, 2018 Not seeing enough of new off-plan launches in Dubai this year? Absolutely right, as developers and property buyers take some time off from last year’s excesses where just about every launch had small upfront payment requirements and the bulk to be paid post-handover. Initially, these were five years post-handover, which soon turned to offers of seven years and, in some cases, all the way up to 10 years. This year, thankfully, the market has been seeing less of these “stretched” incentives and fewer off-plan launches. But that’s not the same as saying that off-plan launches are not going to make a comeback any time soon. It’s just that developers are tweaking their strategies to accommodate the new realities of selling property in Dubai. “What is likely is that they (post-handover plans) have maxed out and therefore unlikely to provide a further impetus in demand over and above what they achieved last year,” said Sameer Lakhani, Managing Director at Global Capital Partners. Instead, more developers are concentrating on offering “immediate” cost benefits to buyers. A waiver of service charges (even extending to 10 years) seems to be gaining favour, and there are the usual ones where the developer absorbs the registration charges in full or partially. In actual terms, how do they add up in cost savings for the property owner? “These over time can amount to a fairly significant percentage of the overall costs,” said Lakhani. “For example, in Dubai Marina, a waiver of service charges for up to 10 years (at an average of Dh22 per year) plus a 4 per cent waiver of Dubai Land Department charges (at an average of Dh1,500 of the sales value) totals to Dh280 per square foot. “This is 19 per cent off on the prevailing sales price there. Now, this is not a cent per cent accurate way to look at it, as we have to factor in net present value analysis. But whichever way you look at it, these are generous incentives, and in certain cases (depending on the developer) did have certain success rates.” The year-to-date property transaction figures in Dubai suggest buyers are interested in what they can get now and not necessarily about how long they can get on their post-handover payments. Between January to end September, there were 8,730 ready units registered with the Dubai Land Department — that’s down just 5 per cent on the 9, 197 units last year. But when it comes to off-plan sales, the year-on-year numbers are 30 per cent off — 12,812 units up to end September against the 18,359 sold last year, according to data from GCP-Reidin. “The clear standout remains Al Furjan, where the incentives in the ready space show a surge in demand. This is likely to be replicated by other developers as a way to clear inventory,” Lakhani said. On ready, Sports City continues to be the sole freehold community that is showing a positive over last year, up by 14 per cent. But Dubai Marina, the Downtown and the Palm are narrowing the declines compared to last year. But when it comes to off-plan sales, none of the city’s key freehold clusters are anywhere near to showing gains over last year. In fact, the end September numbers from GCP-Reidin show nearly all of them are down by 30 per

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cent and over. The only exception have been the off-plan sales at Jumeirah Village Circle, where this year’s decline has been 28 per cent.

Source: Gulf News Back to Index

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DUBAI RESIDENTS’ PURSUIT OF HAPPINESS Wednesday, October 03, 2018 As Dubai expands and its communities become more established, residents are increasingly being able to choose where they live based on what is most suited to their lifestyle. For those seeking an active life, surrounded by healthy cafés and fitness facilities, many areas are increasingly meeting such demands. For families with children, there are communities dedicated to childcare and schooling, while for those with a penchant for a more eco- friendly lifestyle, there is a community for that too. New communities are popping up all the time from the Green Community to Meydan and everything in between and it means residents are spoilt for choice. Quality of life is being planned into many of the new communities, but even the older communities are now able to serve the more discerning resident. JLT: convenience and simplicity Nerry Toledo, a PR executive and yoga teacher, says that for the last eight years, Jumeirah Lakes Towers (JLT) has been the home she cannot imagine leaving. With so many options for recreation and leisure, from its cafés and restaurants to gyms and community events, it is a place she calls home. She says: “It’s a breathable place to live too; you get the greenery and the calmness of the water on top of all the things happening around us. Everything is accessible by Metro, which is just a walk away and the same with the beach. I don’t think of living in any other place. I love it here.” Although it is a densely populated area, she says the simplicity of the community makes it attractive. “It is not as crowded as the other neighbouring communities. Cafés and restaurants are at your doorstep, hotels, spas and fitness centres are all around. I live in the cluster where the Bonnington Hotel is located and there are plenty of healthy restaurants and cafés all over. My office is also just across the street. It provides convenience and simplicity; the reasons why I never look anywhere else to live.” The Sustainable City: holistic living Ina Folkesson, a Norwegian mum, has lived in The Sustainable City (TSC) for almost one and a half years after living in Arabian Ranches close by. “We moved to Dubai because my husband got a job, but our choice to change community and move to TSC was easy,” says Folkesson. “It gives you everything you want and even more, including a safe community for the children. We have no cars driving inside the community, only 122 electrical buggies. All transportation is electrical and they are charged by solar panels, including the garbage truck, landscaping and our own bus. We have a gym and a lap pool that is free for residents. Folkesson also appreciates the activities organised weekly for residents. “There are free activities for the residents every Tuesday at 8pm,” she says. “Before the summer it was yoga, boot camp, Pilates and Zumba. For the kids there are former professional football players that are teaching them how to play for free on Friday mornings.” She adds: “We have an amazing community pool that looks like a resort area, and we have animals like donkeys, goats, hens, chickens, bees, ducks and fishes. Almost like our own farm.” TSC also has the Fairgreen nursery and an autism centre. Inside the community there is a plaza with a grocery store, ladies’ saloon, gents’ saloon, tailor, pharmacy, pet shop, tutoring centre, flower shop, coffee shop, several restaurants and play area. “We do not need to go outside the community, we have everything we need,” she says. Karim El-Jisr, executive director of the SEE Nexus, the knowledge arm of TSC, says such holistic living was part of the master plan. “Our commitment to sustainability has always been holistic, which means we address social,

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environmental and economic sustainability,” says El-Jisr. “Sports and wellness, including health and wellbeing, lie at the centre of our social sustainability strategy and programmes.”

The farm, playground, green field, sports tracks and dog park all provide extensive opportunities for outdoor recreation and sports, El-Jisr explains. “There are many ingredients to happiness,” says El-Jisr. “In our experience, the car-free clusters have created a unique space for families to socialise and this is priceless. Carpooling such as school pick-ups and drop-offs has become second nature because our residents know and see each other daily. The opportunity to cycle within the community, recycle household waste, exercise, farm and partake in our social events greatly enhance happiness. Our events are wide ranging, including show-jumping events, yoga festival, electric vehicle road trips and parades, picnics, and markets.” The Lakes: health and wellbeing Belen Settembri and her family have been living in The Lakes, one of Dubai’s more established communities, for the last eight years and now in their third home there. “It was the community and knowing that the place is ideal for kids made us move there,” she says. “The community is full of kids that can play together in the different parks and swimming pools within the compound. You have three nurseries, two schools that you can bike to, a gym and lots of after-school activities like swimming, tennis, football, dance classes, etc.” The mum of three, life coach and yoga teacher is also active in community classes for residents. “You have many nice parks and the lakes to do it. I also go to the gym, to other teachers’ houses within the compound. We do everything outside; we run and exercise with other couples. It’s a great community with an ethos for healthy living.” Her children cycle to school every morning as it is less than a five-minute ride. “There is a supermarket, laundry, hairdresser and all the amenities families need. As a mum of three who works, I don’t need to organise play dates because they are always playing with the neighbours and I don’t need to be their driver like many other parents, because they do everything with their bikes.” Mira in Reem: pet-friendly and affordable Emilie Mikulla lives in one of the city’s newer communities, Mira in Reem community, which is divided into five clusters. As she and her husband are avid cyclists, it is a perfect location. “Mira is located right on the Al Qudra Cycle path, from where we can access hundreds of kilometres of cycle track going out the front door,” says Mikulla, who moved into the community in May last year. “No more getting the bike into the car, driving to and from the cycle track.” Price was also a factor in their move. “The rent is more affordable than our previous location at Falcon City and you get a lot more for your money. We also have two kids and a dog and wanted to make sure we chose a neighbourhood where they could thrive,” she says. “We couldn’t have picked a better place. Truth be told I’ve lived all over Dubai, from Emirates Hills and Tecom, to Barsha and Falcon, and Mira is my favourite place by far.” She says the area is designed with families in mind, with each Mira cluster having a 25m swimming pool with a lifeguard on duty and a shaded baby pool and a playground. The community also has a dog park, skate park and football pitch. The community’s lush greenery is a plus, says Mikulla, while amenities such as a supermarket are conveniently located. “It’s also very easy for us as our seven-year-old attends Safa Community School, which is 15 minutes away, and our two-year-old goes to Jebel Ali Nursery in Motor City, which is very close,” says Mikulla. “People feel like Mira might be at the end of the world, but it’s actually quite central with direct access to the new Academic City Road, 611 and 311. It doesn’t take us more than 20 minutes to go anywhere.”

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Source: Gulf News

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A PLACE TO CALL HOME: VILLA OR HIGH- RISE? Wednesday, October 03, 2018 Whether enjoying the view of a spectacular skyline from your high-rise apartment or the joy of landscaping your own garden, Dubai has something for every homebuyer. Here are two families who tell us the reasons behind their investments: Neha and Rahul Bhatia, Jumeirah Lakes Towers High-rise perks Rahul and Neha Bhatia moved to Dubai from Delhi in 2013 and could not resist the urge to put down roots here. Five years later, their family has expanded to include two kids and Dubai most definitely is home for them — a fact that is evident when one steps into their vibrant two-bedroom apartment in Jumeirah Lakes Towers (JLT). Neha and Rahul are more at home in a bustling high-rise The couple are no strangers to owning and plunged into the city’s property market in 2014. While the apartment they bought then in Jumeirah Village Circle was purely for investment, with their second buy they were intent on finding a home and JLT fit the bill. So why an apartment over a villa? For Neha it was the feeling of living in a bustling apartment tower that appealed to her the most. As with most good things in life, the couple felt an instant connection when they first walked into their current home. Green fix Not a single element of the apartment is an afterthought, from the travel feature wall in a partially concealed alcove off the living room that showcases the countries they’ve visited, to a charming little reading nook with yellow wingback chairs that also give the family their green fix as it overlooks a verdant space in JLT. As for advice for first-time buyers, Rahul has five stellar tips: “Be very clear about what you want, don’t stretch your budget just because you like something, don’t be in a hurry to buy, don’t buy in the first two years of moving and make sure you’re aware of the laws and regulations.” Archi and Abhishek Gupta, Emirates Hills Aspirational address What do you do when you’ve lived in a city for more than 30 years? Find a beautiful space that reflects your connection to a place you truly consider home. For Dubai-raised Abhishek Gupta and his wife Archi, this was a key factor that governed their property hunt and drew them towards Emirates Hills. “[It is] a community where you don’t just have to settle for a ready-made unit. You can incorporate different aspects of your personality while building your home,” the couple say, explaining their choice of the upscale community. Options

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Their search within Emirates Hills took a fair amount of time as most plots are pre-owned and built to specification by previous owners resulting in numerous options.

A major factor that dictated their checklist was having to take on board the preferences of Abhishek’s parents who live with them. Having two dogs meant the property also had to be pet friendly. And as a new mother, Archi wanted features such as “cycling tracks and community pedestrian gates for children who study at the nearby Dubai International Academy”. The outcome of their two-year search is a luxurious five-bedroom with a basement, gym and separate staff quarters. The couple take pride in their garden dotted with banana, mango and pomegranate trees, all personally tended to by the couple. There is a gazebo overlooking a private pool and soothing fountains in the backyard. Being in the real estate business has also given Abhishek an edge when it comes to making sound investments in Dubai. Bullish on real estate He describes himself as being very bullish about real estate in Dubai. “Even if a person were to foresee being here for a six-year haul, I’d advocate buying,” he says. For homebuyers, Abhishek also suggests enlisting the services of a real estate broker. “Over the years, Dubai has a fairly mature agency network compared to what it was 10 years ago. There are specific agents for specific areas. These agents have their own skill sets and know the law of the land.” Source: Gulf News Back to Index

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RAS AL KHAIMAH WILL TARGET OPPORTUNITIES IN AFFORDABLE HOUSING Wednesday, October 03, 2018 Ras Al Khaimah will develop ample affordable housing and staff accommodation as it targets opportunities in real estate beyond hotels and tourist attractions. “Even building offices could be an opportunity — there’s nothing that says master-developers in Ras Al Khaimah should solely focus on high-end projects,” said Abdullah Al Abdooli, Managing Director and CEO of the newly created holding company Marjan. “The emirate has the land and the demographics that would make it worthwhile for investors/developers to come in. “And to create projects that would give them their expected IRRs (internal rate of return).” Marjan expects to announce two high-profile projects next year — it certainly has the land bank to do so, currently holding 19 million square metres in areas such as Al Jazira and Al Hamra and off Shaikh Mohammad Bin Zayed Road. The 19 million, of course, also includes the Al Marjan Island, a destination in the making for high- profile hotels and resorts. To now build affordable housing and extensive staff accommodation within the emirate needn’t be a distraction. Highway networks are constantly being added to, and that will work to Ras Al Khaimah’s advantage in the future. Plus the rates that developers/landlords can offer on leases should convince many organisations to base their staff quarters there. (Industrial and allied real estate is one category that continues to do reasonably well in an extremely tough marketplace.) “Marjan’s been set up not to oversee what happens in the next one or two years — it’s to serve the longer term vision of Ras Al Khaimah,” said Al Abdooli. “We are talking about the next 30 years.” As for Al Marjan Islands itself, there was already a holding company overseeing its development. The creation of Marjan now gives the entity a much wider mandate. Doesn’t this mandate make it the second master-developer in Ras Al Khaimah? According to Al Abdooli, “Not the way we see it. RAK Properties and Al Hamra have been operating for years — I don’t see Marjan as being the second or third master-developer. Our mandate is to create a strategy and build towards that.” But there’s one aspect that remains unchanged from the recent past. Marjan will not be developing any hotel or other properties of its own. “We will remain a business-to-business company — by offering others to come and invest on projects of their own,” the CEO added. “Our part will involve developing the infrastructure at all these sites and make it easier for third-party investors to do their job. “It means there is no need for us to get directly into the business-to-consumer space.” Shaping Ras Al Khaimah’s island strategy Al Marjan represents four individual islands off the Ras Al Khaimah coast. Multiple hotel developments are going on at the destination. “Three have opened to date and we have completed all of the infrastructure on site,” said Abdullah Al Abdooli of Marjan.

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Meanwhile, RAK Properties, the emirate’s other master-developer, itself is going full steam ahead on the “Al Hayat Island” at its Mina Al Arab destination. There is another “island” there that will be taken up later, called the “Al

Raha”. Source: Gulf News Back to Index

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PLANS FOR FRENCH PAVILION AT EXPO 2020 UNVEILED Thursday, October 04, 2018 France has unveiled how the country will be represented at Expo 2020. The French Pavilion will be dedicated to mobility and under the theme of “Lumière, Lumières” or “Light, Enlightenment”. The French Pavilion will be celebrating Dubai’s ambitious visions of mobility bridging the latest technology to universally connect the world, innovate and revel in the ‘art-de-vivre’. The state-of-the-art projects that will be unveiled at the French Pavilion will showcase the ingenuity and expertise of the French economy’s flagship digital transformation and sustainable urban development. The “Smart City à la Française” model will demonstrate how major global connectivity issues in the 21st century can be solved. “We are very excited to unveil France’s plans for Expo 2020. Since Dubai was announced as the host, we have been working tirelessly to create a French Pavilion unlike any other. We will be highlighting all the wonderful things France has to offer from products, technologies, innovations and ideas. Our presence will be a vehicle to connect with the world at this epic event,” explained Erik Linquier, Commissioner General of the French Pavilion at Expo2020. In honour of the expo a special logo has been designed by Richard Attias & Associates in collaboration with their creative partner Hands Agency to represent France’s three messages of Radiance, Speed and Light. During the six months of the expo, the French Pavilion will be promoting the country’s expertise in solving issues with key themes of health, artificial intelligence, research, education, culture, science at the forefront of the initiatives. The pavilion will illustrate the opportunities of creating the conditions for a better world for this generation and the ones to come. Leaders from these key industries will be on the ground to offer insights and to share their expertise. “Expo 2020 will offer France the opportunity to express its vision on climate change initiatives and to create ecological and environmental solidarity on an international level. In the spirit of the One Planet Summit, France will continue to support the advancement of social well-being and justice across the world while also using digital accelerators to develop smart cities of the future”, added Linquier. Expo 2020 will create great opportunities for France and a chance to exchange ideas and meet with the expected 25 million visitors from over 180 countries. The French Pavilion will showcase France’s public policies, the support for innovation and sustainable development and will highlight the new technologies by private and public entities and partners. The French Pavilion will also offer the opportunity for France’s rich heritage and contributions to humanity come to light in the form of philosophy, art, culture, entrepreneurship, technology and scientific advancements — further positioning the country as an ideal country for tourism and business development. Source: Gulf News Back to Index

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HOW ARE DEVELOPERS ATTRACTING PROPERTY BUYERS? Thursday, October 04, 2018 Dubai has been built by bringing to light the fantastic vision of the developers that dared to dream big. Real estate, often seen as the scale on which the city's overall economic soundness is judged, continues to be going strong and gathering stability by attracting foreign investment worth billions and diversifying its offering from luxury to upscale and affordable properties, aimed at the growing mid-segment population. Despite a recent softening, real estate continues to be a preferred asset class among investors and the attractive payment plans and innovative offers from developers have gone a long way in securing buyer interest. Affordable housing Major developers are now providing a variety of cheaper, alternative homes suitable for a whole range of buyers. Nshama is offering apartments starting from Dh443,000, Azizi from Dh390,000 and Danube from as low as Dh320,000. Even Damac, once seen as an exclusively high-class property developer, has units on the market starting from as little as Dh586,000. Perhaps the most impressively-priced developments belong to Dubai South, who has revealed that they plan to have units going on sale starting from Dh280,000. Payment plans A fundamental component to keeping buyers interested and preventing them from going to the secondary market, developers are now ramping up their efforts to improve their payment plans, having noted that it is the most effective way in attracting buyers. Some of the Dubai-based developers frequently offer four and five-year post-handover payment plans in premium locations and can even go up to an impressive seven-year post- handover payment plan. Lease-to-own An innovative way to market developments, lease-to-own schemes are now increasingly becoming more popular among developers. A great option for buyers that have not been able to obtain a mortgage where a large downpayment was needed, the promising incentive could further assist in stimulating Dubai's flat real estate market, as well as helping to shift the significant amount of unsold properties surrounding the city. Discounts and extra incentives In a bid to stand out from the crowd and shine in a highly competitive market, some developers are doing a lot more than just offering stretched-out payment plans, and have turned to waiving Dubai Land Department registration fees, as well as offering zero service charge fees for a specific amount of time. Real estate developers are even providing up to a four per cent discount on selected properties. One developer is also easing the concerns of buyers by offering repayments and rent-free stays to cover job loss. The clever exit-scheme comes with two different options - one being where buyers can reside in their houses for up to three years once the project is ready and units are handed over in 2020, where in the meantime they will not need pay rent as the payments made until that point will be counted towards that. The alternative option comes into play when buyers can reclaim a portion of the down payments made until the time of the handover.

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So, what does the future hold for incentives being offered? Developers are realising the need to go above and beyond what is expected of them. However, as exciting as freebies and discounts are, it is likely that organised and structured payment plans will be the winning factor in stimulating investors to buy. The writer is John Stevens - managing director of Asteco. Views expressed are his own and do not reflect the newspaper's policy. Source: Khaleej Times Back to Index

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LOWER REAL ESTATE PRICES HAVE LEVELLED THE PLAYING FIELD Thursday, October 04, 2018 The soft market conditions in Dubai aren't deterring developers from launching blue-ribbon projects. The 17th edition of Cityscape Global 2018, which concluded on Thursday, has seen some big launches - the Madinat Jumeirah Living by Dubai Holding, Marsa Meydan by the Meydan Group and 'Riviera of the Emirates' project by Abu Dhabi-based Imkan Properties. However, developers are weaving in an element of affordability in these luxury projects by adding more apartments to the mix. "Developers are offering units across the whole spectrum in their projects. It's not just about the three-bed penthouses any more. A luxury developer like the Select Group has a majority of studios and one-bedroom apartments in their Dubai Marina project," says Matt Gregory, head of sales for property at dubizzle. According to market sources, a one-bedroom apartment at Madinat Jumeirah Living is priced at Dh1.68 million, a two-bedroom at Dh2.05 million and a three-bedroom at Dh2.78 million. While Dubai property was once considered to be the bastion of the uber-rich, softening property prices have levelled the playing field and made real estate more affordable for end-users as well. "Dubai wouldn't be Dubai if there were no launches of some luxury projects. Prices and rents will continue to fall, more so for the luxury sector. But there is not that much further to decline, we're getting near the bottom. Prices will continue to fall simply because of the products being launched. The only way developers can clear all that inventory is by cutting costs," observes Craig Plumb, head of research for the Mena at JLL. End-users who plan to stay in the country longer and are currently paying monthly rents between Dh120,000 to Dh150,000 are thinking of using that money as a downpayment to purchase property in the UAE. The recently proposed residency reforms are also encouraging expatriates to shift from their transient mindset. For instance, dubizzle says that three-bedroom villas on Palm Jumeirah, which was once considered out of bounds for a majority of the population living in Dubai, is now one among the most searched properties for sale in the emirate. "In the super-premium segment, there is a smaller number of people who invest in uber-luxury property. A lot of the investment is coming from overseas. The Chinese market is quite hot now. Emaar hiring Chinese brokers is a testament to demand from that market," Ann Boothello, director of marketing at dubizzle, points out. "It's very much a buyer's market; people can negotiate and get deals," adds Gregory. Although there has been talk for the past few years that Dubai's luxury property market is close to bottoming out, there are certain sub- markets where there is room for prices to fall further. "In certain markets, this is certainly close to the bottom, however, there is still some room for prices to decrease. In locations such as the Palm Jumeirah villa market, we are seeing that the market is very much there [or there about] and as a result, we are seeing the market begin to pick up in terms of transactions," says Taimur Khan, research manager at Knight Frank. "We are at the bottom of the cycle. As the supply/demand matrix stabilises, we will see a return to steady measured growth," observes Jason Hayes, founder and CEO of Luxury Property.

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Dubai Marina, Jumeirah Lakes Towers and JVC/JVT have a lot of attraction for end-users as well as off-plan buyers. The market in Downtown has slowed a bit.

"Investors are looking at B and C locations for investments as the returns are higher than in prime locations. End- users are still seeking properties in prime locations such as Downtown and the Palm for secondary and Dubai Hills for off-plan," adds Daniel Garofoli, luxury sales specialist at Luxhabitat. "In terms of off-plan sales, beachfront apartments on the Palm Jumeirah have continued to be popular, primarily in developments such as the Alef, One Palm and Royal Atlantis. The villas at XXII Carat have also proven to be popular with buyers. Secondary villas sales have been strong in areas such as Al Barari, Arabian Ranches II and District One," says Hayes. If the unit is correctly priced, then it sees good levels of demand, whereas overpriced units will tend to have much longer marketing periods. "More so in areas where we are expecting an influx of supply such as Downtown Dubai, we are seeing greater discounts being achieved compared to the marketing price," elaborates Khan. Some properties are sitting on the market for a longer period as sellers keep a bottom line in mind that they don't want to move from. "Sellers are willing to come down in prices little more now and take a hit, which is a great sign as they see that their market moves sidewards, but not down. So, in order to shift a property quick, it's required to come closer to a serious buyer's offer," adds Garofoli. Source: Khaleej Times Back to Index

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READY PROPERTY SPACES ARE THE REAL(TY) WINNERS Thursday, October 04, 2018 The Danube pavilion at Cityscape Global at the Dubai World Trade Centre. The event ended on Thursday. Ready space was the clear winner at Cityscape Global 2018, with developers focusing more on clearing their existing inventories rather than launching more grandiose off-plan schemes. Buyers were offered generous incentives on ready-to-move-in and close-to-completion properties such as a waiver of service charges (sometimes even extending up to 10 years), price discounts and waiver of the 4 per cent Dubai Land Department registration fees. Nakheel has taken the lead in offering such incentives for its ready villas in Al Furjan. The developer's offer to pay 5 per cent as down payment to move in now and pay the remaining over 10 years has seen great take-up among buyers. This is also endorsed by the year-to-date transaction figures provided by GCP-Reidin. The volume of sales of ready villas at Al Furjan is up a whopping 143 per cent in the first nine months of 2018 compared to last year. This is also true for the rest of the ready property market in Dubai, which saw 8,730 units registered with the DLD from January to September end this year as compared to 9,197 homes last year, down only five per cent, according to GCP-Reidin data. Dubai Sports City ready apartments also performed well, with the volume of sales up 14 per cent this year. This could be because secondary developers are getting creative with incentives to sell their ready stock. Ready villas in Arabian Ranches and Jumeirah Park also seem to be resonating among buyers this year. Meanwhile, off-plan home sales are down 30 per cent in the first nine months of this year - only 12,812 units were registered year-to-date in 2018 compared to 18,359 in 2017. Developers seem to have maxed out the post- completion payment plans for offplan properties at a time when price-conscious buyers are seeking immediate savings on ready properties. Jumeirah Village Circle put up a relatively better performance in off-plan sales this year compared to other freehold clusters such as Downtown and Town Square. Dubai has registered off-plan sales worth Dh16.48 billion year to date, down 38 per cent from the Dh26.66 billion in 2017, data reveals. On the contrary, ready properties worth Dh14.93 billion have been registered from January to the end of September 2018, down a mere eight per cent from the Dh16.28 billion in 2017. Source: Khaleej Times Back to Index

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WEAK RUPEE TO ATTRACT NRI INVESTMENTS INTO INDIAN REAL ESTATE: REALTY PLAYERS Thursday, October 04, 2018 Analysts expect to see a further downturn in the days ahead. With the Indian rupee under pressure for the past few months and declining to its lowest-ever levels, real estate players expect non-resident Indian, or NRI, investments in the sector to gain momentum. A weaker rupee against the US dollar makes investment in India cheaper for foreign investors and NRIs. Stakeholders say that the NRIs' off-take in the property market constitutes around 7-8 per cent of the country's total real estate inventory. Already, NRI investments in Indian real estate have touched $10.2 billion so far in the current financial year, up from $8.9 billion invested in FY2017-18, according to a recent report by consultancy firm 360 Realtors. "This growth is largely driven by five cities, Mumbai, Pune, Bengaluru, Gurugram and Noida," the report said. Owing to the ongoing currency depreciation, the first half of 2018 has witnessed enquires from NRI investors, which would eventually lead to the Indian real estate business growing gradually over a period of time, thus creating a positive impact on the sector, Ashok Mohanani, Chairman, Ekta World, told IANS. Mumbai-based Nahar Group's Vice Chairperson Manju Yagnik feels the 7-8 per cent share of inventory generally bought by NRIs, would go up this year. "As per industry reports, approximately 7-8 per cent of inventory is being bought by NRIs each year," she said, adding that with the current trend "it is estimated that investments from NRIs will rise to about 10-12 per cent". According to Rajan Dang, founder of property portal Zvesta.com, with the current valuation of the rupee, foreign investors buying property in India are getting appreciation of "12-15 per cent while investing from USD to INR" and with forecast of the dollar strengthening further against rupee and other major currencies, "gross appreciation will reach 20-22 per cent in property prices for foreign investors". Speaking of the source countries of NRI investment in the country's property market, CEO of NCR-based HomeKraft, Prasoon Chauhan, told IANS that major investments come in from the Middle East, US, UK, Canada and Australia. "This is an excellent time for NRI investors to get properties with savings of 10-20 per cent depending on currency exchange rates of the day," Chauhan told IANS. However, there are also cautious voices among stakeholders, who do not see much of a spike in NRI investments and a change in status quo for the largely tepid Indian property market. Aunirban Saha, Director of Noida-based SAHA Groupe, said: "According to my research, there has been no impact as such. Neither there has been increase in investment nor inflow of money."

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He further noted that, traditionally, NRI investments take place around Diwali, as they know there are discounts in the market during that time and they know they would get even better deals then, regardless of the currency fluctuation. "Currently the market sentiment is very, very low, especially in the north and Delhi-NCR, because there is a lot of over-supply and deliveries are stuck. So the sentiment is very low, and for this reason too investments are not coming," Saha told IANS. Consultancy firm India Assetz' CEO Shivam Sinha said: "In the short run, obviously it will have an impact, but the rupee also is not that volatile. Yes, it impacts; but does not impact to that extent." The Indian currency has been on a decline for over a month now, in line with currencies of other emerging markets, and it touched an all-time low of 72.98 on September 18. Analysts expect to see a further downturn in the days ahead. Although a weak domestic currency is considered a disadvantage for the economy in general, it can also be seen as an investment opportunity for individuals as well as institutional investors. "Since real estate is considered to be a long-term investment, foreign investors chance upon the depreciating Indian rupee. Thus, the depreciation in currency has a long-term impact on the overall investments made in the country," said Abhinav Joshi, Head of Research, CBRE India. Source: Khaleej Times Back to Index

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RIGH T TIME TO INVEST IN AFFORDABLE RENTAL STOCK Thursday, October 04, 2018 There is substantial opportunity for investment in affordable rental stock with a focus on working personnel with limited income. A drill-down of Dubai's residential stock has shown that there's a shortage in properties that are strategically located as well as affordable for those earning between Dh2,500 and Dh5,000 per month. It comes as no surprise that more than one million people working in Dubai can't find suitable accommodation, opting instead to live within the northern emirates. Up to 43.6 per cent of a tenant's expenses go towards rent and utility expenses. Therefore, an annual income of Dh50,000 or almost Dh4,200 per month, would be the bare minimum to be able to afford to rent a studio that goes for Dh22,000 a year. However, most of these properties are located in the northern parts of Dubai which would mean long commutes to central and southern areas of Dubai. It has become challenging for teachers, receptionists, nurses, accountants, shopkeepers as well as professionals in maintenance, biotechnology, HR, catering, insurance and manufacturing, to seek an affordable apartment within reasonable commuting distance to the workplace and/or schools. In general city-wide terms, rents have softened and may continue to do so as more rental stock becomes available. There is a substantial demand for affordable apartments in Dubai, creating opportunities for intuitional investments, Reits, housing associations as well as employers to invest in affordable rental stock and benefiting from the long-term income and high occupancy rates. The Dubai Municipality is taking steps to narrow the affordability gap as it has allocated 100 hectares of land in Muhaisnah Fourth, Al Quoz Third and Al Quoz Fourth to develop rental units to house more than 50,000 people earning Dh3,000 to Dh10,000 a month. New affordable developments can benefit from public transport, particularly the Dubai Metro. Dubai's residents look forward to the new Metro lines and Etihad Rail that will connect the new areas of Dubai and further afield towards the Northern emirates and Abu Dhabi. Expanding the infrastructure and developing new townships is expected to take years. In the meantime, we expect continued substantial opportunity for investment in strategically located affordable rental stock. The writer is head of real estate research at ValuStrat. Views expressed are his own and do not reflect the newspaper's policy. Source: Khaleej Times Back to Index

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SHARJAH, RAK DEVELOPERS BID TO CLEAR EXISTING STOCK Wednesday, October 03, 2018 Sharjah's supply pipeline is looking robust, although there have been no significant launches at Cityscape Global 2018. Developers are taking calculated steps with their launches to prevent an oversupply. Developers such as Arada, Alef and Tilal Properties are tapping the pent-up demand. Opening of the real estate market to UAE residents two years ago was a watershed moment for Sharjah. It attracted pent-up domestic demand from long-term residents who were eager to put down roots in Sharjah, or those who had been priced out of Dubai or Abu Dhabi. Demand for property in Sharjah has always been interlinked with Dubai, with residents responding to the price increases and decreases in Dubai by moving into and out of the northern emirate. With developers such as Arada and Eagles Hills entering the market, Sharjah's profile as a real estate destination has improved. UAE and Arab nationals have been leading the way in snapping up off-plan properties and plots in Sharjah. These are available at a significant discount when compared to Dubai. For instance, Tilal City offers an opportunity to purchase or lease land and build property within Sharjah. A flagship project of Tilal Properties, Tilal City spans 25 million square feet. It is the first master-planned community in Sharjah with no service charges and will be maintained by the Sharjah Municipality. The plots are mostly being purchased by Emiratis, Arabs from the GCC and Asians. Four zones have been launched so far, of which zone C was designated for villas while zones B and D are plots designated for G+3, G+4 and G+5 buildings. At Cityscape, the group is offering a five per cent discount on sales, flexible payment plans (10 per cent down payment, pay quarterly within 24 to 36 months) and land finance arrangement with the Sharjah Islamic Bank. The plots are freehold for Arabs and 100-year leasehold renewable for non-Arabs. Meanwhile, Arada launched Sarab Community, a luxury project, in its Dh24 billion master development, Arada, featuring 109 townhouses and semi-detached villas. "The starting price at Sarab is Dh1.2 million and goes up to Dh1.6 million. We are not doing extended post-completion payment plans," said Ahmed AlKhoshaibi, CEO of Arada. Arada also unveiled the design of Arada's Central Hub, a 1.9 million sqft space designed by Zaha Hadid Architects. Divided into three phases, it will feature extreme sports, a food truck park, outdoor cineplex, movie theatre, kids' area, educational and entertainment area and an experiential sales centre (ready by Q1 2019). "We are creating a new downtown for Sharjah," said Prince Khaled bin Alwaleed bin Talal, vice-chairman of Arada. Speaking of the Sharjah real estate market sentiment, AlKhoshaibi said: "Sharjah property has been very resilient. Prices do not fluctuate like other emirates. We are charging the same price as the rest of Sharjah. There is no premium at Aljada. It's affordable." The Alef Group is offering price discounts, on-the-spot bank approval and a monthly payment plan at the Al Mamsha project in Sharjah's Al Juraina area. The price of a studio at Cityscape is Dh290,000. The developer has

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sold 15 buildings so far. The price starts from Dh300,000 (studio) and goes up to Dh1.5 million for a three-bed duplex.

Issa Ataya, managing director, Alef Group, said: "Ninety per cent of our buyers are based in Sharjah. There is huge pent-up demand in Sharjah." RAK Properties is showcasing its existing inventory at the property exhibition. These include Marbella and Angel Bay on Hayat Island, Bay Residences and Gateway on Raha Island. "RAK property is in a correction phase, like rest of the UAE. Properties within a community, such as Mina Al Arab, are in demand. At Cityscape, we are offering extended payment plans and waiving community charges for five years for some existing stock. The title deed registration fee is also waived for some units," said Samuel Dean Sidiqi, CEO, RAK Properties. Source: Khaleej Times Back to Index

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AFFORDABLE HOMES IN UAE: NOT THERE YET Thursday, October 04, 2018 Projects with smaller ticket sizes are still in the minority. Dubai was once synonymous with luxury real estate. The city has come a long way today, with products catering to different segments of the market. Affordable housing has gained momentum in Dubai. However, high loan-to- value ratios still make it hard for middle-income end-users to get a foot on the property ladder. But, some developers have taken the onus on themselves and have come up with flexible post-completion payment plans which require buyers to pay a small amount as down payment and a big chunk on completion. "When we look at Dubai, we see the industry having a barbell shape [emphasis at the top end in the form of blue- ribbon communities such as Palm Jumeirah, Emirates Hills, Downtown Dubai, Dubai Marina, Dubai Hills, etc., and at the bottom end such as International City and Discovery Gardens] and far lower choices in the mid end of the spectrum. This has started to change in recent years with the development of communities such as Sports City, Jumeirah Village, Arjan, Majan, Dubai Silicon Oasis, etc.," said Sameer Lakhani, managing director, Global Capital Partners. In an environment of falling rents and prices, certain communities are being populated faster than others where developers are competing attractively in terms of price and payment plans. "Such communities for example include Al Furjan and Sports City and the data shows that investors and end-users have responded to these incentives," he added. Danube Properties has been one of the pioneers of affordable housing in Dubai with their unique payment plans. "Affordable homes are the need of the hour in the UAE and the GCC that cater to the largest population segment. Future growth in real estate will come from the middle-income households - those who have been priced out of the system. In order to make home acquisition more affordable, Danube Properties introduced a one per cent monthly payment scheme that makes home buying more affordable and eliminates the need for bank finance," said Atif Rahman, director and partner of Danube Properties. Consultancy JLL defines an affordable home as around Dh800,000 for a 2-bed apartment. "If you look at the projects being launched today, there aren't too many in that price bracket. There is still more to do in the affordable space," Craig Plumb, head of research, Mena at JLL, told Khaleej Times. There are projects in Dubai for the range of Dh400,000 and lesser, but they are in the minority. There is a lot of people in that segment who want to purchase property but find it difficult to put together the 30 per cent deposit. Rent-to-own schemes "Schemes or incentives like rent-to-own would open up a huge segment of people who may now be renting property and would want to buy but may never manage to come up with the 30 per cent deposit. For an apartment worth Dh500,000, you are looking at Dh150,000 as deposit. The person who is buying this may be earning less than Dh15,000 a month. That involves saving for several months together," observed John Stevens, managing director, Asteco. Affordable projects in the ready space are Discovery Gardens, International City, Jumeirah Village Circle, Jumeirah Village Triangle, Silicon Oasis and Remraam. In the off-plan space, Emaar's Collective feature affordable co-living spaces. Dubai South, Town Square, Arjan and Jumeirah Village are also upcoming areas with affordable supply.

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"No developer can ignore affordability if they want to reach out to end-users. Investors are also looking for affordable properties since they can rent it out more easily than luxury housing," said Sailesh Jatania, CEO of

Gemini Property Developers. Overall, all housing has become more affordable in Dubai. "Projects that were earlier out of reach for individuals has now become more affordable. The Palm Jumeirah is more searched for by renters," according to Daniel Hart, CEO, Masterkey. There is also the debate about whether affordable housing is of good quality. Developers are trying to make apartments affordable by making them smaller. There is a move to smaller living and communal spaces globally. This trend has been seen in Dubai as well and is a natural response to the rise in land prices over time. "Ten years ago, a one-bed apartment in the Palm Jumeirah spanned about 900 to 1,000 sqft. Now, one-beds range between 600 to 700 sqft. Developers want to make the best use of space," explained Matt Gregory, head of sales - property, dubizzle. Quality concerns? It's also a typical move for some developers to compromise on quality when it comes to mid-income housing. "What happens is that the smaller and less quality conscious developers get weeded out over time. And so we get a dynamic whereby the boutique developers in the mid-income space are also the ones where quality consciousness generally rises," added Lakhani. "Quality of an apartment is paramount and cannot be compromised in a city like Dubai. The development guidelines take care of this partly. Also, the customer today is well-informed and well-researched. Dubai sets the trend of an acceptable threshold of quality. A quality delivery is the best brand building," said Sailesh Israni, director of Sun and Sand Developers. The cost of construction has varied drastically over the years. "The best way to counter that is to make spaces smaller and more efficient. A lot of developers have reduced carpet area but made the rooms higher to give the impression of more space," informed Hart. Developers can't risk their reputation by missing a delivery date or providing a bad quality product, remarked Ann Boothello, director of marketing, dubizzle. Source: Khaleej Times Back to Index

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UAE PLEDGES DH3B TO HELP BOOST JORDANIAN ECONOMY Thursday, October 04, 2018 The UAE today signed an agreement with the Jordanian government to extend an economic aid package worth Dh3 billion ($833 million) to stimulate and support economic growth in Jordan. The allocation will be managed by the Abu Dhabi Fund for Development (ADFD), the leading national entity for development aid. The Dh3 billion package falls within the framework of the Makkah Summit. During the meeting in June, the UAE, Saudi Arabia and Kuwait agreed to support Jordan with a cash injection of $2.5 billion to ensure that its economic development efforts are on track. The agreement was signed by Obaid bin Humaid Al Tayer, UAE Minister of State for Financial Affairs, and Dr Mary Kamel Kawar, Jordanian Minister of Planning and International Cooperation, in the presence of Dr Omar Razzaz, Prime Minister of Jordan; Matar Saif Sulaiman Al Shamsi, UAE Ambassador to Jordan; and Adel Al Hosani, director of the ADFD's operations Department, as well as senior officials from both countries. The economic assistance package provided by the UAE is to be distributed as: a deposit of $333.3 million in the Central Bank of Jordan to support the bank's fiscal and monetary policy and achieve economic stability in the country; $250 million (Dh918.3 million) to support the Jordanian government budget, dispensed over five years (yearly increments of $50 million); $50 million development loan to finance development projects in Jordan; and $200 million in guarantees to the World Bank to benefit the Jordanian government. Al Tayer said that the package provided by the UAE government to Jordan is based on the strong historic bonds of friendship that exist between the two countries and in line with the directives of the President, His Highness Sheikh Khalifa bin Zayed Al Nahyan; His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai; and His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. Al Tayer reiterated that via the economic aid package, the UAE will seek to stimulate the economic and financial landscape in Jordan and contribute to supporting the country's development plans. Source: Khaleej Times Back to Index

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With over 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 East and internationally. leading real estate experts.

Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai, Our valuations are carried out in accordance with the Royal Institution of Chartered Surveyors (RICS) and Northern Emirates, Qatar, and the Kingdom of Saudi Arabia not only provides a deep understanding of the local International Valuation Standards (IVS) and are 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 • Valuation Services

John Allen BSc MRICS Director, Valuation & Advisory SALES +971 4 403 7777 Asteco has established a large regional property sales [email protected] division with representatives based in UAE, Saudi Arabia, Qatar and Jordan.

Our sales teams have extensive experience in the Jenny Weidling BA (Hons) negotiation and sale of a variety of assets. Manager – Research and Advisory +971 4 403 7789 LEASING [email protected] 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.