News Brief 36

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

N EWS BRIEF 36 SUN DAY 13 September 2015

RESEARCH DEPARTMENT

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

REAL ESTATE NEWS

UAE

UAE PROPERTY BOOM: DEVELOPERS LAUNCH NEW PROJECTS WORTH BILLIONS UAE RANKED AS SECOND-BEST MARKET FOR PROPERTY INVESTORS

DUBAI

DH30BN MEYDAN ONE: WORLD'S LARGEST INDOOR SKI SLOPE READY BEFORE 2020 DEYAAR OPENS REGISTRATION FOR MIDTOWN BUYERS 9 WORLD RECORDS: DUBAI'S NEW CHALLENGE FOR GLOBAL DEVELOPERS EARNING DH10K-30K PER MONTH? AFFORDABLE RENT IS DH72,000 PA DESIGN DISTRICT IS A HAPPENING PLACE IN THE MAKING DUBAI PROPERTY VALUES WEAKEN IN AUGUST DAMAC OFFERS POWER LIVING VIA A BUGATTI HOME NAKHEEL RIDES THE WAVE AT DEIRA ISLANDS FALCON CITY DEVELOPER TO GET CRACKING WITH ‘WONDERS’ REVEALED: DESIGN OF BURJ 2020 DUBAI'S DH25BN MALL OF THE WORLD WILL NOW BE A 'FUTURE CITY’ DEYAAR PLANS 1,000 HOTEL ROOMS, SIGNS DEAL WITH MILLENNIUM & COPTHORNE REAL ESTATE MARKET TO LEAD OTHER SECTORS IN DUBAI'S ECONOMY: MOHAMMED DH300M ANANTARA HOTEL IN RAK TO GET MALDIVES-INSPIRED WATER VILLAS DUBAI REAL ESTATE MARKET STABLE; OVERSUPPLY FEARS RULED OUT NOOR BANK OFFERS ‘COMMERCIAL PROPERTY FINANCE’ FOR CUSTOMERS DUBAI’S MOST EXPENSIVE APARTMENT: DH181M HOME FOR RICH AND FAMOUS TECOM TO OPEN 11 BUILDINGS IN DUBAI’S D3 BY END OF THE YEAR JUMEIRAH ADDS COMMUNITY ASPECT TO AL ANDALUS FAIRMONT NORTH RESIDENCE PENTHOUSE BRINGS A TOUCH OF RALPH LAUREN ON PALM JUMEIRAH PALAZZO VERSACE HOTEL IN DUBAI TO OPEN IN DECEMBER TANMIYAT TO DELIVER ALL 500 VILLAS AT DELAYED LIVING LEGENDS PROJECT IN DUBAILAND DANUBE ADOPTS AFFORDABLE HOUSING AT EASY PAYMENTS AS ITS NEW WINNING STRATEGY

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

AL HABTOOR WARNS OF DUBAI HOTEL OVERSUPPLY AHEAD OF EXPO 2020

DUBAI SOUTH PLANS MID-MARKET VILLAGE IN TREND TOWARDS AFFORDABLE HOMES DUBAI’S PALM JUMEIRAH TO GET NEW BEACH WITH LATEST NAKHEEL PROJECT MAG PROPERTY DEVELOPMENT TO SHOWCASE THREE-TOWER CLUSTER AT CITYSCAPE GLOBAL DUBAI LUXURY PROPERTY PRICES CONTINUE TO WEAKEN DUBAI’S MALL OF THE WORLD MASTER PLAN REVAMPED FOR TRANSPORT SYSTEM DUBAI PROPERTY HUNTERS FLOCKING TO MORE AFFORDABLE SECONDARY LOCATIONS JLL CALLS FOR GOVERNMENT ACTION ON MIDDLE-INCOME HOUSING DUBAI TO RANK PROPERTY BROKERS BASED ON PERFORMANCE DUBAI PROPERTY CORRECTION EXPECTED TO CONTINUE INTO 2016

ABU DHABI WHAT NEXT FOR PROPERTY IN DUBAI, ABU DHABI AND BEYOND? ABU DHABI RENTS ARE SECOND-HIGHEST IN THE WORLD BLOOM PROPERTIES TO BUILD 302 HOMES NEXT TO NYU’S SAADIYAT CAMPUS ABU DHABI RESIDENTS CONCERNED OVER EXCESSIVE UTILITY CHARGES

NORTHERN EMIRATES SHARJAH'S WATER PARK: WATERFALLS, 40 RIDES AND... A VANISHING ROLLER COASTER AL ZORAH LAUNCHES TWO LUXURY PROJECTS IN AJMAN MINOR HOTEL GROUP TO BUILD ANANTARA RESORT IN RAS AL KHAIMAH CZECH DIAMOND COMPANY TO BUILD FIVE-STAR HOTEL ON RAK’S AL MARJAN ISLAND

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

DH30BN MEYDAN ONE: WORLD'S LARGEST INDOOR SKI SLOPE READY BEFORE 2020

SUNDAY 13 SEPTEMBER 2015 The total cost of building the mega Meydan One development in Dubai will range between Dh25 billion and Dh30bn. Its first phase, comprising Meydan One Mall, the world’s largest indoor ski slope and the largest dancing fountain, is set for completion ahead of Expo 2020, a senior company executive told 'Emirates24|7'. Mohammad Al Khayat, Vice-President - Commercial and Free Zone, Meydan Group, said, “We estimate the project to cost between Dh25bn and Dh30bn as we aim to deliver the first phase of the master plan by 2020. "We are currently holding workshops after having got the approval for the first concept. We are focusing not only on the retail component, but also on various attractions such as dancing fountain, indoor ski slope, an indoor sports arena of almost 250,000 square feet, an entertainment zone and a water theme park, which will be is equivalent size to Wild Wadi.” According to Al Khayat, Meydan One Mall could be as “big” as either the Mall of the Emirates, or Dubai Mall. “If you see all the malls (Dubai Mall, Mall of the Emirates and Mirdif City Centre) are jam packed, as the number of residents in the emirate are increasing due to the excellent infrastructure here and the safety and security offered by the emirate.” Meydan One Mall is likely to have a gross floor area of 4 to 5 million square feet, driven by the growing demand from today’s main anchor tenants. “Besides, we estimate the footfalls to our mall will come from not just Meydan One (which will house 78,000 residents), but even from surrounding areas such as Meydan Avenue, Horizon, Sobha Hartland and the Burj Khalifa district.” Ski - all year long Though Dubai already has an indoor ski slope, the world’s longest indoor ski slope at 1.2 kilometres in Meydan One is being built to attract professional skiers and offer new attractions for snow lovers. “Our feasibility study found that the 400 metre stretch allows only a certain category of skiers. With approximately 800m or more, we will have steep slopes to attract professional skiers.” At the base of the ski slope will be Meydan Arena, which will have a seating capacity of 8,000 and play host to sporting events, live concerts and theatrical shows. Rising Dubai One With the design of the 711-metre Dubai One, billed to be the world’s tallest residential tower, currently under study, Al Khayat does not rule out the possibility of it rising higher. “The ‘711’ was based on the initial design and it could go even higher or lower, as it will be subject to Dubai Civil Aviation approval. The tower is currently in the design stage,” he stated.

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With Dubai expected to see population growth in the coming years, driven by the UAE’s growing economy and rising job opportunities, the developer is taking precautions of ensuring that the infrastructure will meet the growing demand in future. “We have completed the first traffic study and all our submissions are in collaboration with the Road and Transport Authority, Dubai Municipality and Dubai Electricity and Water Authority. We are ensuring that all the infrastructure and planning is completed before we start work on the project,” Al Khayat asserted. Apart from being connected to the Dubai Metro Gold Line, the project will be located mere four kilometres from the Etihad Rail station. Completion in 10 years Meydan estimates seven to 10 years for completion of the mega development. “For a project of this scale, I would assume seven to 10 years. One should not forget that there will be different sub-developers working on their plots as well. We have committed to deliver the infrastructure in a certain period of time and they (sub-developers) have also agreed to complete their projects in a certain time,” Al Khayat added. The Power of One Meydan One will set the following new world records. # 711-metre Dubai One Tower will be the world’s tallest residential tower; # World’s highest restaurant at 675 metres # World’s longest indoor ski slope at 1.2 kilometres # World’s largest indoor gymnasium at 25,000 square metres # World’s highest 360° observation deck at 655 metres # World’s largest dancing fountain at 420 metres in length Source: Emirates 24/7 Back to Index

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DUBAI REAL ESTATE MARKET STABLE;

OVERSUPPLY FEARS RULED OUT

FRIDAY 11 SEPTEMBER 2015 The major players of Dubai real estate arena, who have invested billions of dirhams in the property sector, have shrugged off the pessimism of double-digit price declines this year or in 2016, stating the market faces no oversupply issue and will continue to remain stable. “Look at the clear cut information from the market and forget all those reports. Population, economy, tourism, number of visitors to the airport and infrastructure investment is growing in the emirate. If you see these factors and see the results of the two biggest real estate companies (us and Emaar) in the first half of the year, we both booked sales close to Dh13 billion… You have seen the number and nobody can dispute that,” Ziad El Chaar, Managing Director, Damac, told Emirates 24/7. “Even the Dubai Land Department has reported Dh53 billion in transaction value in the first six months of 2015 of which Dh30 billion came from non-Arabs. This reflects the great trust in this market… so with all of this ‘2016 is still gloomy’,” he asserts. Sobha Hartland In the first six months of 2015, the developer had marketing activations and launches in more than 40 cities across the world, aimed to promote Dubai and the local property market. “This is why our numbers are strong… the real estate is not a passive industry but is an active industry. And all those people who are saying ‘the market is slowing down are passive developers’ and are expecting the business to come to them. They need to go and promote Dubai and the market. If they won’t do this, they will not get a piece of the cake.” Though international consultants state that nearly 26,000 to 28000 new units will enter the market by year-end in Dubai, El Chaar does not believe so. “How is that possible? We and Emaar have given indication to the market that less than 5,000 units will enter the market. And we both control more than 50 per cent of the market… so where is the number coming from,” he asks. At the Cityscape Global 2015, which closed on Thursday, the developer launched Bugatti-designed villas in Akoya Oxygen development in Dubailand. Starting prices for these villas are Dh36 million. The developer, as of March 31, 2015, has delivered almost 14,000 homes and has a development portfolio of over 37,000 units at various stages of progress and planning. It is currently working on two major master developments which are Akoya by Damac and Akoya Oxygen in Dubailand. Finding interest and cheques Ajay Rajendran, Vice Chairman, Sobha Developers, is confident of the market maintaining a similar growth rate of 2015 next year as well. “We are finding interest and cheques. I cannot foresee price falling (10 to 20 per cent) in the areas we are working. The numbers are strong enough and considering the whole market is not in feverish pitch I think we have seen good enough and sound interest,” he told this website. “Many a times people get worried about the bubble and then they get worried about the fall. At this pace there is enough of activity for serious developers to see sales and continue to construct and to move on

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from project to project. From our point of view, the pace at which things are going is acceptable to us and I believe next year we would expect to see a similar level of interest.”

The company is building two mega developments – Mohammed Bin Rashid City (MBR City) - District One and Sobha Hartland in MBR City, worth Dh48 billion ($13.10 billion) in the emirate. Market reports In June 2015, Standard & Poor’s, a global ratings agency said property prices in Dubai’s residential housing market are expected to fall by 10 to 20 per cent this year.

Moody’s Investors Service, a global ratings agency, has also said prices will fall by 10 per cent this year but it believes government spending on infrastructure and encouraging more foreign investments in various sectors will support the real estate market over the next five years. HSBC Global Research said previously sad that Dubai may see supply of 90,000 new units by 2018, but the market will absorb – fairly easily — the new supply even if the population grows less than five per cent per year. A report issued by CBRE, a global property consultancy during Cityscape, said property prices in Dubai were nearly two times cheaper than London, with average prices for the top-of-the-end market in the emirate being $1,300 per square feet (psf) compared with $3,000 psf in London. “Where recent growth has been particularly marked, investors are now expecting either slower or negative growth. Average growth in London and Dubai for example, as well as a number of other international markets, have hit double digit highs for at least two years prior to 2014. We’re now witnessing a market correction and more modest growth with small pockets of localised decline,” Safina Ahmad, head of Residential, CBRE Mena, wrote in the report. Source: Emirates 24/7 Back to Index

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DH300M ANANTARA HOTEL IN RAK TO GET MALDIVES-INSPIRED WATER

VILLAS

FRIDAY 11 SEPTEMBER 2015 124 villas being built in phase one, which will be delivered by last quarter of 2015. RAK Properties, Ras Al Khaimah’s (RAK) biggest property developer, is building a Dh300 million 250-room hotel on Mina Al Arab, a mixed-use waterfront development, company CEO told Emirates 24|7. “The resort - Anantara Mina Al Arab Ras Al Khaimah Resort - will comprise 250 units with Maldives- inspired overwater villas. It will open in late 2018,” Mohammed Sultan Al Qadi, Chief Executive Officer, RAK Properties The developer, which is listed on the Abu Dhabi Stock Exchange, signed a hotel management agreement with Minor Hotel Group (MHG) to operate the resort. Mohammed Sultan Al Qadi, CEO, RAK Properties and Travis White, Business Development Manager, Minor Hotel Group. Asked his view of the emirate’s property market, Al Qadi said it was the best time to invest in real estate. “If you want a long-term investment put your money into real estate as there is always appreciation. The UAE is very attractive market because its offers freehold, has a growing population, flexible rules, nearly 200 nationalities living here, best airport and best airlines - all these is making investment into real estate attractive.” Terming prices for their units “economical,” he stated: “We believe our prices are much lower because we don’t look for high margins. As the prices are lower than other emirates, we are seeing investors buying into our projects.” Earlier this month, the developer awarded the construction contract for the second phase (68 villas) of its Flamingo Villas in the Mina Al Arab to Al Nuaimi Group, which is building the 124 villas in phase one, which are set for delivery by last quarter 2015. Source: Emirates 24/7 Back to Index

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REAL ESTATE MARKET TO LEAD OTHER SECTORS IN DUBAI'S ECONOMY: MOHAMMED

THURSDAY 10 SEPTEMBER 2015 His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, accompanied by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, today visited Cityscape Global 2015, held at Dubai World Trade Centre. Sheikh Mohammed bin Rashid, accompanied by Lt. General Musbeh bin Rashid Al Fattan, Director of the Office of Vice President and Prime Minister and Ruler of Dubai, Khalifa Saeed Suleiman, Director-General of the Protocol and Hospitality Department in Dubai and Helal Saeed Al Marri, CEO of Dubai World Trade Centre and Director-General of the Department of Tourism and Commerce Marketing in Dubai, toured the exhibition at which more than 300 international, regional and local companies display their latest real estate projects in the development and tourism industry sector. A number of major developers in the UAE are present at the event, with market leaders including Emaar, Dubai Properties, Nakheel, Meydan, Meraas, DAMAC, Dubai South, Union Properties and Deyaar showcasing their latest portfolio of projects to regional and international investors. UAE major developers presented their mega projects including Meydan One, a residential, leisure and hospitality destination by Meydan, 1/JBR, a luxury residential development by Dubai Properties, and Culture Village, a waterfront promenade, retail and residential district with open spaces, walkways and pedestrian bridges. Concluding his visit, Sheikh Mohammed bin Rashid expressed his happiness for rapid increase in the exhibitors’ numbers that registered 30% increase compared to the 2014 session. Sheikh Mohammed considered this increase to be a clear indicator on the vibrant development of UAE’s real estate market and assure the accuracy of Dubai’s future vision. Sheikh Mohammed affirmed that this growth in Dubai’s real estate market would play significant role in the welfare of UAE citizens and residents. He added that the real estate market is expected to lead other sectors in Dubai’s economy, including tourism, and will have positive impact on the emirate’s cultural and social scene. Sheikh Mohammed affirmed his support for all the developmental projects carried out by local developers. Sheikh Mohammed bin Rashid welcomed the new projects that will open new job opportunities for youth and provide quality life for Dubai’s residents. Source: Emirates 24/7 Back to Index

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SHARJAH'S WATER PARK: WATERFALLS, 40 RIDES AND... A

VANISHING ROLLER COASTER

THURSDAY 10 SEPTEMBER 2015 The Crystal Lagoon water theme park, coming up in Dh20-billion Sharjah Waterfront City, will have 40 rides, with one combining the action of a water ride with an interactivity of the video game, according to the designer of the theme park. “It is very unique to have a water park and dry park together. There will be 40 attractions (water and dry rides) and many levels of interactivity for families, teenagers and people of all ages,” said Danny Lee Schultz, Business Development Director, Jack Rouse Associates, a US-based master planning and conceptual design services. “We will utilise the latest technologies and, in fact, one ride under consideration will combine the action of a water ride with an interactivity of the video game and it will be first of its kind in this part of the world.” Besides, there will be “wave pool”, a high capacity pool that will have the ability to adjust the height and frequency of the waves. “The pool will move from absolute calm to three metre high waves,” Schultz said, adding, there will be a roller coaster that would disappear under water and variety of waterfalls that will enhance guest experience around the pool. Announcing the launch of the city at Cityscape Global, Hayssam El Masri, President, Sharjah Oasis Real Estate said: “The project has been launched keeping in line with Sharjah’s development plans to attract 10 million visitors to its emirate by 2021. These plans will increase demand for residential and commercial units as well as hotels, especially in prime locations that offer all modern facilities.” Sheikh Abdullah Shkara, Chairman of Al Hanoo Real Estate Company, a major shareholder in Sharjah Oasis Real Estate, said: “We have invested a lot in this project and believe this project will be the heartbeat of the city’s tourism 2021 vision.” Dusit – Sharjah Waterfront City, a five-star hotel with minimum of 200 keys and 200 serviced residences, and Shaza – Sharjah Waterfront City (a Kempinski affiliate), a five-star luxury hotel with nearly 300 keys and 350 serviced apartments, became the first two hotels to sign the agreement within the City. The hotels are expected to start construction by the last quarter 2016 and expected to open to public in 2019. “We are expecting to complete the first and second phase, which includes mixed-use towers, villas, hotels and a commercial centre, by third quarter 2018 and will cost us Dh9.35 billion,” El Masri said. “The total cost of the project is between Dh18 billon and Dh20 billion,” he added. Invest Bank to fund phase 1 The developer also announced the signing of a partnership with Sharjah-based Invest Bank for funding of the first phase of the project.

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“Currently we are funding the first phase of the project which is expected to be completed by 2016, also we are considering the possibility of financing the remaining phases; and to finance the end users,” said S ami Rashid Farahat, General Manager, Invest Bank. The city, spread across 36 kilometre of coastline with a total area of 60 million square feet, will have 200 mixed-use towers, 95 apartment buildings, offering affordable luxury apartments, multi-level hotels and service apartments, over 1,100 water-front and park-side villas, marine clubs, a shopping mall, two entertainment centers and mosques, schools, banks, stores, coffee shops and restaurants. Source: Emirates 24/7 Back to Index

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DEYAAR PLANS 1,000 HOTEL ROOMS, SIGNS DEAL WITH MILLENNIUM &

COPTHORNE

WEDNESDAY 09 SEPTEMBER 2015 The UAE-based real estate developer Deyaar Development plans to add 1,000 hotel keys in the UAE and signed a memorandum of understanding with Millennium & Copthorne Hotels, Middle East and Africa for developing and operating new hospitality projects. The agreement was signed by Saeed Al Qatami, Chief Executive Officer of Deyaar, and Ali Hamad Lakhraim Alzaabi, President and CEO of Millennium & Copthorne Hotels MEA, at Cityscape Global. Saeed Al Qatami said Deyaar has allocated up to one million square feet of land for hospitality projects as part of our growth strategy. “We have already announced several hotels and hotel apartment projects as part of our ongoing development pipeline. As a logical progression, we decided to expand our hospitality portfolio and commenced serious conversations with reputed and established international hotel operators such as Millennium & Copthorne.” Ali Hamad Lakhraim Alzaabi, President & CEO, Millennium & Copthorne Hotels MEA, said: “We have aggressive growth plans for the Middle East and Africa region, with an aim to open 100 hotels by 2020. We believe that our agreement with Deyaar will help us achieve our targets within the set time-frame.” Millennium & Copthorne Hotels plc owns, asset manages and/or operates over 120 hotels worldwide. With almost 40,000 rooms worldwide, the company currently has a footprint in all continents. Source: Emirates 24/7 Back to Index

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DUBAI'S DH25BN MALL OF THE WORLD WILL NOW BE A 'FUTURE CITY’

WEDNESDAY 09 SEPTEMBER 2015 Dubai Holding is currently re-working the master plan of the mega Mall of the World development and now aims to build it as 'future city' of Dubai. The new components of the development include residential and office with the master plan being re- engineered to integrate public transport systems in the form of Metro, tram, buses, water transport, etc., to ease traffic within and outside the development “The project has not been stalled… it is in redevelopment stage. "What Dubai Holding wants to do given the strategic location of the land – which is as large as Downtown Dubai - is to have patience and search for what is going to be the very best result for the site?” said Morgan Parker, Chief Operating Officer of Sufouh Development, the new company set up to oversee the development of Mall of the World. “We are trying to forecast what Dubai is going to be 50 years from now and so we are not building a project that is a statement on the world today,” he asserted. The site in the Al Sufouh area is currently occupied by the Dubai Police Academy. “The academy is not moving for next two years and so we have time to find the best solutions not just for development but also for the surrounding area. "Our challenge is to create a tourism destination in a climate-controlled environment and not to create any congestion and traffic jams.” The phase one of the development is likely to begin in the next 18 months with full construction planned only after the existing academy relocates to its new location in Dubai Academic City. The project, announced at Cityscape 2014, is likely to cost Dh25 billion and will include a shopping mall with an area of eight million square feet, the world’s largest theme park, which will be covered by a glass dome that will be open during the winter months, a wellness dedicated zone, a cultural celebration district and a wide range of hospitality options comprising 20,000 hotel rooms. “It is not just about creating the world’s largest mall, but seamlessly integrating the hospitality, residential, commercial and entertainment lifestyle options into the bigger picture.” In fact, the Mall of the World will not have one large mall, but three urban malls, almost two thirds of the size of Mall of the Emirates. There will be dozens of public plazas and entertainment zones, 23 parks, hotels, etc., that will be linked to each other through air-conditioned arcades and climate controlled spaces. Source: Emirates 24/7 Back to Index

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UAE PROPERTY BOOM: DEVELOPERS LAUNCH NEW PROJECTS WORTH

BILLIONS

WEDNESDAY 09 SEPTEMBER 2015 UAE developers continued to launch new projects, worth billions of dirhams, on day one of Cityscape Global, expecting global investors to be attracted to the emirate due to its safe-haven status and ‘affordable’ prices compared with London, New York and Hong Kong. A reported issued by CBRE, a global property consultancy, said property prices in Dubai are nearly two times cheaper than London, stating average prices for the top-of-the-end market in Dubai being US$1,300 per square foot (psf) compared with $3,000 psf in London. In fact, a number of developers said lower oil prices and global stock market crash has not deterred new launches with many planning more projects by year-end or early 2016. The following major announcements were made on Tuesday. Nakheel unveils Jebel Ali Gardens Dubai-based Nakheel unveiled Jebel Ali Gardens, a new development that will accommodate over 40,000 people. Set on a 5.5 million square foot area, with a built-up area of over 19 million sqft, the project will comprise 10,000 apartments in 42 buildings. Jebel Ali Gardens “It is designed for people who want quality, affordable accommodation and convenient community facilities,” the company said in a statement. “The project is one of a growing number of developments in our residential and retail leasing portfolio, a key focus of the company’s business strategy,” it added. Jebel Ali Gardens will include over 1.1m sqft of green, landscaped parks, a two kilometre jogging track, swimming pools, football fields and tennis and basketball courts. The Villages in Dubai South Dubai South unveiled its The Villages project, with development of the first village beginning early 2016 and scheduled completion in 2019. Each Village at Dubai South will have an inspiring community environment, featuring smartly designed residences, including buildings of up to G+8 containing bedroom apartments, studios, lofts, as well as villas and townhouses. The Villages The residential component of each village will have K-12 school, a civic center, a health and wellness complex, high street and retail outlets. Al Zorah unveils two projects

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Al Zorah Development Company, a joint partnership between the government of Ajman and Solidere International, launched two new communities with a development value of Dh1.5 billion within its 5.4 m sqm Al Zorah master development. The Golf Estates gated community consists of 800 villas, townhouses and apartments set on the 18-hole Nicklaus Design Golf Course within The Fairways district, while the Al Zorah Beach Residences comprises 134 chalet-style villas and apartments in The Shores district. Al Zorah Beach Residences The initial phase of the development includes an 18-hole Nicklaus Design golf course and clubhouse, which are set to open in December 2015 followed by 42 Golf villas by mid-2016. First of the four marinas and the 5-star Oberoi Al Zorah Resort will open by early-2016. Construction on both the projects will commence early next year with the former scheduled for completion in 36 months and the latter in 24 months. Tanmiyat Global unveils Skyline Towers Tanmiyat Global and Delta International Real Estate has announced the launch of The Skyline Towers – a twin tower project in Dubailand. Spanning 34 floors, the towers will covering more than one million square feet and include 750 residential and hotel apartments. An additional eight floors will form the base of the two towers, consisting the Legends Mall and parking. The Skyline Towers The project, set for completion in 2018, will be connected to the Legends Mall, which houses 158 stores and is expected to be completed by end-2016. DIC Dh500m project on Al Marjan Diamonds International Corporation (DIC) launched a development featuring a 5-star hotel, branded residential apartments and 40 water villas on Al Marjan Island in Ras Al Khaimah. Valued at Dh500 million, the new development is currently in the design and planning phase. It will have 340 branded residential units, while the 5-star hotel will have 300 rooms and suites. Construction is slated to begin in early 2016 and will be completed in three years. Bloom’s new hotel in Abu Dhabi Marina Bloom Hospitality, a Bloom Holding subsidiary, has announced development of a five-star hotel project within the Abu Dhabi Marina mixed-use cluster. Set to open in the third quarter of 2016, the 200-key and 57 serviced apartment hospitality project will be operated under the Edition hotel brand – a boutique hotel venture by American hotelier and real estate developer Ian Schrager in partnership with Marriott International. Construction is 70 per cent complete, and the project handover is set for third quarter of 2016. The project has been awarded a 2 Pearl Rating by Abu Dhabi’s Estidama Pearl Building Rating System. Dh1bn Viridian at The Fields launched SPF Realty, a real estate broker in the UAE’s freehold property sector, unveiled Viridian, the second project by G&Co in The Fields development in Mohammed Bin Rashid Al Maktoum City (District 11). Viridian at The Fields The second phase of the residential community, Jade at the Fields being the first phase, will to be developed at an estimated value of Dh1bn. The community will comprise 326 townhouses of contemporary style.

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Source: Emirates 24/7

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REVEALED: DESIGN OF BURJ 2020

TUESDAY 08 SEPTEMBER 2015 Dubai Multi Commodities Centre (DMCC) on Tuesday unveiled Burj 2020, a super-tall tower that could even go over 700 metres in height with the top two floors being observation deck. “The demand that will be registering will dictate the exact height of the tower but at the highest it might go 700 plus. We are looking at a super tall tower and we are looking at having one of the world’s highest viewing decks which will offer 360 degree experience,” Ahmed Bin Sulayem, Executive Chairman, DMCC, said after launching the Burj 2020 District at Cityscape Global. The pure commercial tower is slated to claim the title of the world’s tallest residential tower in 2020, the year when it will be completed. “We have seen lot of success and lot of mistakes as well but we are not going to repeat it in this initiative,” Bin Sulayem said. The master planned Burj2020 District will comprise seven towers and over one million square metres built up area (BUA), which is equivalent size of approximately one-third of the existing Jumeirah Lakes Towers (housing 66 towers) and nearly twice the size of New York’s Rockefeller Center. In addition, there will be retail offering totaling over 100,000 square metres. The district has been designed by Adrian Smith and Gordon Gill (AS+GG). “Inspired by faceted gemstones, the Burj2020’s design is rooted in the principles of perpetual value, enduring strength and everlasting beauty. Symbolising the next stage of growth for the city, the design of the tower is also inspired by the facets of a diamond – elegant, bold and timeless,” said Smith. Meydan, a Dubai-based developer, has also announced plans for the world’s highest 360° observation deck at 655 metres, while other developers have announced plans to build the second tallest tower in the emirate after Burj Khalifa, the world’s tallest tower. Source: Emirates 24/7 Back to Index

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FALCON CITY DEVELOPER TO GET

CRACKING WITH ‘WONDERS’

TURSDAY 10 SEPTEMBER 2015 The master-developer of Falcon City is to get cracking with developing the “wonders of the world” recreations that are to form such an integral part of the project. The plan is commit “massive investments” through the rest of this year and the next to fast-track development of small and mid sized “pyramids”, which are to feature serviced apartments. “Everyone’s been asking as to when the wonders of the world are coming,” said Salem Al Mousa, Chairman and CEO of Falcon City of Wonders . “We have sub-developers who are supposed to do the Eiffel Tower and the Taj Mahal — but they haven’t started so far. “I’m not going to wait any longer, and will start work on the wonders that I can do directly, which are the pyramids. I am going to use my own money — bankers may their plan B and C, but I work to my own plan, which is Plan A. And I don’t need bankers.” On whether he plans to take up the issue with the concerned sub-developers if they fail to launch the projects, Al Mousa said: “I will go by the book.” But he did not go into details of what this could entail. Even without the “wonders”, Falcon City has been building up scale. There are an estimated 400 families resident there, while secondary market activity related to properties within Falcon City has topped Dh11 billion, according to Al Mousa. The developers will also start on the ‘City of Beirut’ and ‘City of Old Dubai’ clusters, as well as the Central Park. Also Mooa said he does not see any merit in bringing in outside hotel operators to handle some of the properties within the development. These can be handled just as well with internal resources, he said. “I am going to bring inasmuch as it takes to create what the market and property buyers have been looking for us to deliver. There are 69 strategic elements within the master plan and we will work on bringing as much to reality in the quickest possible time. “These days, the business of development has too many obstacles to contend with — even external factors,” said Al Mousa. “It’s no easy job. But the fundamentals of the UAE remain the same and that’s what will continue to influence developers. “I will say that in two years we will have crossed the 50 per cent mark in terms of building up Falcon City . It will be done.”TT Source: Gulf News Back to Index

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NAKHEEL RIDES THE WAVE AT DEIRA

ISLANDS

TURSDAY 10 SEPTEMBER 2015 Having just confirmed two joint ventures with hotel operators on Deira Islands, Nakheel is keeping options open for additional hospitality projects there. “The two properties represent 1,250 rooms and that’s a sizeable base to start with,” said Sanjay Manchanda, CEO. “We will look at any opportunity to top up our hospitality-specific exposure on Deira Islands. “But more important, our commitments will, hopefully, pull in other investors to take up their own positions on the development. When they see the kind of exposure we are building up there, they will soon want to come in on their own and building something on the beachfront.” (It was in March last year that Nakheel launched plot sales for hotel projects on the “Islands”.) But the CEO said no timeline has been set for the launch of residential sales there — “We will wait to see how the market pans out — that will help decide the ideal timing,” said Manchanda. “There are a lot of people with fond memories of Deira — in many ways we are reigniting those memories through the Islands. Deira Mall “The response to the leasing of the Night Souq outlets was outstanding, and we have already started work on the Deira Mall, which is going to be a large development. “It’s all starting to take shape.” Meanwhile, its other mall under development — the flagship Nakheel Mall on Palm Jumeirah — is completely pre-leased. The Mall will add a whopping 1.2 million square feet of net leasable area to Dubai’s retail stock. It is due for completion end-2016. “Clearly, retailers don’t want to miss out on any opportunity to move into one of the prime destinations in Dubai and with such a large space on offer,” said Manchanda. “At the same time we are trying to be selective with the tenant mix — we would prefer not to have more of the same. The mix will reflect our strategy to bring in newer names into Dubai and thus add more competition in the market.” Source: Gulf News Back to Index

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DAMAC OFFERS POWER LIVING VIA A BUGATTI HOME

TURSDAY 10 SEPTEMBER 2015 Damac Properties is bringing out a limited edition — there will be only eight — Bugatti villas to be built overlooking the Tiger Woods designed golf course at its Akoya Oxygen development. These villas would cost around Dh35 million. (Just for comparison, a 2015 Bugatti Veyron would come to $1.4 million to $1.69 million.) Incidentally, these are the first such Bugatti themed homes (or the Ettore 971 series to be precise after, with Ettore Bugatti being the brand’s founder while “971” signifies the international code for the UAE.) “It’s not putting a Bugatti stamp on to a Damac built property — Bugatti had come out with a collection of interiors and home furnishings,” said Ziad El Chaar, Managing Director of Damac Properties. “We saw, we were impressed and like we did with Fendi earlier, decided we could recreate those elements that are synonymous with Bugatti into actual residences.” Glass enclosure The design of these homes is such that the garages will have a pride of place as would the living rooms. The garage would be cast within a glass enclosure and allowing a future owner to take in full what’s parked from their living rooms. Clearly, this is one property where the garage will not be an add-on. (Indeed, it need not be that the garages will only host a Bugatti model.) The seven-bedroom villas are actually conceptualised by the designers of the 1,200-hp Bugatti Veyron — the world’s fastest street- legal production car — and reflecting its distinctive curved front, Damac said in a statement. Meanwhile, the golf course is in the final design phase, and will head into development mode as soon as that is complete in the coming weeks. It is same in the case of the Trump World clubhouse. The design conceptualisation for the Fendi villas, set on “islands” within the Akoya master-development, is progressing. “Be it our association with Versace for our Beirut and Saudi developments, or Fendi and now Bugatti, there are buyers who are willing to buy into these living experiences,” said Al Chaar. Source: Gulf News Back to Index

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DUBAI PROPERTY VALUES WEAKEN IN

AUGUST

TURSDAY 10 SEPTEMBER 2015 The Dubai real estate tracker data for August showed a further slowdown in Dubai property values, with 60 per cent of real estate agents reporting a drop in average sold prices over the past three months and only 13 per cent indicating an increase. The Dubai Real Estate Tracker is based on survey data collected from two separate but complementary sources such as real estate agents and households across the region. Softer market conditions were also reflected in the latest new buyer enquiries data with 54 per cent noting a decline over the past three months, which panellists linked to greater caution among buyers and weaker underlying investor sentiment. The latest survey pointed to a rebound in confidence regarding the outlook for the next 12 months, with the proportion of agents expecting a rise in average property values (45 per cent) outstripping the number forecasting a reduction (30 per cent). “The Dubai Real Estate Tracker survey is consistent with price data and shows a further slowing in the residential real estate sector over the summer months. While the slowdown is partly seasonal, other factors including concerns about the economic outlook and USD strength have weighed on demand,” said Khatija Haque, Head of MENA Research at Emirates NBD. The survey of Dubai households signalled that 65 per cent continue to expect rising property values during the year-ahead against just 17 per cent that anticipate a fall. Positive trends continued on the lettings side of the market over the three months to August, with real estate agents reporting both a rise in newly agreed rentals and increasing levels of new enquiries. Robust demand patterns in turn contributed to upward pressure on rents, with the latest survey suggesting an especially strong increase in apartment rental prices. “The lettings market remains robust both in terms of the volume and price, suggesting that population dynamics are supportive of the real estate sector,” said Haque. The latest survey suggested that lower international new buyer enquiries were a key factor weighing on demand conditions. Measured overall, the rate of decline in new buyer enquiries was slightly faster than that seen in the previous survey period. Source: Gulf News Back to Index

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DESIGN DISTRICT IS A HAPPENING

PLACE IN THE MAKING

TURSDAY 10 SEPTEMBER 2015 The first of the plots for residential at the swanky Dubai Design District (d3) should be out on sale early next year. Third-party developers are eligible to participate in creating G+8 to G+12 structures, while the master-developer is looking at options to build some of the plots on its own. The plots assigned for residential take up the inner side of the master-development, which has a footprint of 14 million square feet and an eventual built-up of 21 million square feet. Already, d3 has acquired quite a reputation as the place to be for the fashionable and the artistically inclined. Phase 1 with its 11 buildings for office and retail — totalling 1.5 million square feet — is closing in on completion before the year is out, while excavation works for Phase 2 — which will have the warehouses and workshops — has started. Conceived as a modular block, this phase should be ready by early 2018. A third phase will create “12 to 14 hotels” in boutique-style formats and which would be in keeping with the nature of what overall location will be. It will also be helped by overlooking a 1.8-kilometre waterfront. “The intention is that at no point of the day, season or year should any portion within d3 close down,” said Lindsay Miller, Managing Director of d3, which is part of the Tecom Group’s themed developments portfolio. “That’s the idea behind having the hotels too, which would make d3 the place to live, work and socialise. The entire project is geared to a certain lifestyle — it’s most definitely not going to be a 9-5 place.” The first tenants have moved in, including some of the biggest labels in the high-end fashion and retailing. These include Hugo Boss and the Chaloub Group. Food and beverage joints make up 40 per cent of the retail space allotted at Phase 1. “There’s been an aggressive take-up rates, and the waiting lists are big, particularly for retail. And we have been told by independent consultancies that d3 has had the most successful pre-release leasing in the city,” said Miller. Those who signed up in the initial phase were able to avail of special pricing schemes for the offices. The top-end of the offices currently command rates on par with those at the Downtown. “The first signatories got excellent rates and it’s a practice we will continue at the new phases too,” said Miller. Source: Gulf News Back to Index

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EARNING DH10K-30K PER MONTH? AFFORDABLE RENT IS DH72,000 PA

MONDAY 07 SEPTEMBER 2015 Only 22 per cent of 19,500 residential units launched in 2015 to date in Dubai fall in the affordable to middle-income housing criteria, JLL, a global real estate consultant said on Monday. Though the definition of “affordable” varies across the region in terms of “price point”, the global real estate consultancy puts an “affordable” sales price in the UAE at around Dh790,000 and affordable annual rent at around Dh72,000. In Saudi Arabia, the affordable sales price is about SAR450,000 and the affordable annual rent is about SAR47,000, while in Egypt, the affordable sale price is nearly EGP285, 000 and annual rent around EGP 32,000. “The shortage of middle-income housing in Abu Dhabi and Dubai primarily impacts mid-income expatriates, as Emiratis are provided with housing by the government, and most low-income workers are provided with accommodation by their employers,” JLL said. The demand for middle-income housing has been calculated from an analysis of income levels provided by Oxford Economics, it states. Households earning between Dh10,000 and Dh30,000 per month are the main source of demand for middle-income housing, accounting for around 40 per cent of all households, which equates to 820,000 households across the UAE. “Based on our affordability calculations, this faction of the population can afford rents of up to Dh72,000 per annum, and could potentially purchase property priced up to Dh790,000,” the report said. Affordable housing in Dubai The areas that offer affordable units for households within JLL’s identified income bracket are in the older areas of Dubai (Deira/Bur Dubai) or in outer areas to the South and East of new Dubai such as Dubai Investment Park & the International Media Production Zone (IMPZ). More areas are available for rent rather than purchase with the option for purchasing an existing housing for less than Dh790,000 being Arjan, Discovery Gardens, IMPZ, Liwan and Dubai International City. The majority of options available to middle-income households consist of apartments, with no existing villa communities within the defined price range. Areas that offer middle-income housing which are accessible by the existing metro system are in older locations of Deira and Bur Dubai (where property can only be purchased by GCC nationals). The proposed extension to the Red Line will, however, change this situation slightly, opening up options for families to own and rent properties around the Dubai Investment Park, Discovery Gardens and IMPZ. The report states further enhancements to the public transport system are needed to access areas in the outer part of Dubai, between Mohammed Bin Zayed Road and Emirates Road. Cheapest areas in Abu Dhabi In Abu Dhabi, JLL said none of the freehold locations currently offer affordable property for sale and therefore the only option for middle-income families is to rent.

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This is limited to apartment units as no villas/townhouses fall within their affordable range.

Some affordable units for rent can be found scattered across the central business district (CBD), however these are generally older buildings with little surrounding amenities and poor parking facilities. The majority of affordable projects available for rent are located in the outskirts of Abu Dhabi, away from the CBD, in locations such as Mohammed Bin Zayed City, Mussafah, Khalifa B and Al Rahba. The shortage of middle-income housing has resulted in high levels of sharing with JLL estimating a sharing ratio of 1.9 in some parts of the capital, indicating there are almost twice as many households as there are housing units in these locations. Despite the recognised need to provide new units for sale to middle-income households in Abu Dhabi, none of the 4,000 units in projects launched in the first six months of 2015 offer two-bedroom units within the Dh790,000 range for middle-income households, the report reveals. Source: Gulf News Back to Index

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9 WORLD RECORDS: DUBAI'S NEW

CHALLENGE FOR GLOBAL DEVELOPERS

TUESDAY 08 SEPTEMBER 2015 Real estate projects, worth billions of dollars, will be displayed under one roof in Dubai on Tuesday at Cityscape Global property event, but UAE developers will take the limelight, revealing details of their mega projects that will set up new challenges for global developers. Meydan, a Dubai-based developer, will showcase Meydan One – a mega development, with a gross floor area of 5,500,000 square metres that will create six new world records. The project will include 711-metre Dubai One Tower, the world’s tallest residential tower; world’s highest restaurant at 675 metres; the world’s longest indoor ski slope at 1.2 kilometres; the world’s largest indoor gymnasium at 25,000 square metres; the world’s highest 360° observation deck at 655 metres and the world’s largest dancing fountain at 420 metres in length. Burj 2020 Dubai Multi Commodities Centre, developer of Jumeirah Lakes Towers, will for the first time unveil the details of the Burj 2020 district - home to Burj 2020 tower, billed to be the world’s tallest commercial tower. The company has got Adrian Smith + Gordon Gill Architecture (AS+GG) to design the tower, while WATG, a destination creation consultancy, is working on the master plan of the district. Construction is expected to begin this year with plans to complete the tower before 2020. Dubai is the host city for Expo 2020, which will run from October 20, 2020 to April 10, 2021. Twin tower in Dubai Creek Emaar Properties, Dubai’s largest developer, will showcase the tallest twin towers in the world in their Dubai Creek Harbour at The Lagoons. When completed, they will surpass the 1,483-feet Petronas Towers in Kuala Lumpur, Malaysia. Dubai Eye Meraas Holdings, developer of Dubai Eye, the world’s largest ferris wheel, on its Dh6-billion Bluewaters Island, will display Marsa Al Seef project. The 210-metre Dubai Eye will offer views of the emirate’s coastline and landmarks such as Burj Al Arab, Palm Jumeirah and Burj Khalifa. Sharjah Waterfront City Vying for attention will be Sharjah Oasis Real Estate Development Company, new kid on the block, which will reveal details of its Dh20 billion waterfront city with 200 towers, 95 apartment buildings, a water theme park. The city will house 200,000 people. The three-day Cityscape Global, held at the Dubai World Trade Centre, will bring together over 300 exhibitors from 30 different countries, with the largest participation coming from UAE companies. Source: Gulf News Back to Index

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DEYAAR OPENS REGISTRATION FOR MIDTOWN BUYERS

SATURDAY 05 SEPTEMBER 2015 Deyaar Development PJSC announced on Saturday that the online registration for Afnan district the first phase in Midtown is now open for interested buyers. The development offers studio, 1, 2 and 3 bedroom apartments, and will be showcased at a launch event on September 12 and 13 at its sales centre during which time Deyaar will offer flexible payment plans and prices starting from Dh397,000. The Afnan District is the first part of the grand 1.2 million sq ft mega Midtown development to come on- stream. Within the Midtown project, Afnan includes seven residential developments comprising a total of 659 apartment units in varying sizes. The construction of Afnan District is scheduled to begin before the end of the year. Source: Gulf News Back to Index

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T ECOM TO OPEN 11 BUILDINGS IN

DUBAI’S D3 BY END OF THE YEAR

SUNDAY 06 SEPTEMBER 2015 Tecom Investments, the free zone authority responsible for the Tecom, Dubai Media City and Dubai Internet City zones, has said that it will deliver an extra two million square feet of office space by the end of this year. The company, part of the government-owned Dubai Holding, is set to deliver most of this space within the city’s new creative hub, Dubai Design District (d3), which sits on the opposite side of Al Khail Road to the Downtown Dubai district. Tecom said 11 new buildings will open at d3 before the end of the year, alongside three new buildings at International Media Production Zone. It also said that the new 1.8 million square foot Innovation Hub building based within Dubai Media City is set to open by the first quarter of 2017 while the Creative Community building within d3 – aimed at providing local designers and artists with galleries and studios – will be completed in 2018. It has been designed by UK-based architecture company Foster + Partners. Tecom Investments also revealed plans to rebrand to Tecom Group, which it said reflects its broader range of activities. As well as overseeing 10 free-zone communities and 11 business parks, Tecom has also moved into residential development through its Villa Lantana project in Al Barsha South, and it has its own media organisation, Arab Media Group. It operates the Arabian Radio Network, events company Done Events and the Global Village tourism project. Tecom Group chief executive Dr Amina Al Rustamani said: “Our upcoming developments will be fully- fledged communities with the objective of enabling business growth and championing creativity and innovation, and our new brand symbolises our diversified portfolio of projects.” Rents for office space in Dubai remained flat in the first half of this year, with prime offices priced at Dh250 per square foot, secondary space at Dh130 and tertiary space at Dh70, according to a property report by consultancy Cluttons. However, it added that the picture remained “complex”, with exceptions at the top end such as Dubai International Financial Centre (DIFC) and Emirates Towers where rents are Dh275 and Dh300 per sq ft respectively. Cluttons also said it expected higher demand from international businesses looking to service Iranian operations from Dubai when sanctions are lifted. This “will once again place upwards pressure on Grade A rents in sought-after sub-markets, particularly the city’s primary free zones such as DIFC, Internet City and Media City, d3 and Dubai Airport Free Zone”, it said. Source: The National Back to Index

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DUBAI’S MOST EXPENSIVE APARTMENT: DH181M HOME FOR RICH AND FAMOUS

SUNDAY 06 SEPTEMBER 2015 It has the views, the location and the snazzy interior, though anyone lost in a dream world after seeing One at Palm Jumeirah will soon be woken up by the price tag. The developer Omniyat has put the project’s penthouse on the market for a bank-busting Dh181 million, making it Dubai’s most expensive apartment. And it hasn’t even been built yet. Mario Volpi, the head of projects at Asteco Property Management, said a property in this price bracket would be attractive for someone who either wants some privacy or is flash with the cash. “You’re looking at maybe royalty, a famous footballer, a rockstar or a rich businessman,” he said. “At that price, just think of the amount of land you could buy in France or Scotland.” The development has been designed as “the ultimate address”, according to Omniyat’s website, where it also describes the property as “a personal temple”. The New York firm Soma Architects came up with the plans for the eye-catching structure, while the interior will be taken care of by Japan’s Super Potato. The penthouse comes with seven bedrooms and eight bathrooms, plus 12 parking spaces. The internal area is more than 25,000 square feet, and the terrace comes in at a staggeringly massive 16,640 sq ft. The building has a communal swimming pool with a spa and a gymnasium, and offers enviable views of Dubai Marina and the sea. The Dubai property market has been on the slide this year, with Knight Frank last week naming it as the worst performer in its second quarter Global House Price Index. It said mainstream residential prices fell by 12.2 per cent in the year to June and by 2.8 per cent quarter-on-quarter. The future owner of the penthouse will not be worried about its value, however, said Mr Volpi, who said he has not come across an apartment in Dubai of this size. “Any one with that kind of money will not be bothered whether it’s a good investment,” he said. “It’s unlikely the price will come down if nobody buys it for a while – it will be take it or leave it.” He added that in terms of location, “you can’t really go wrong with the Palm Jumeirah”. “The development is named after the plot number, so it’s right at the start of the Palm and will have easy access, plus it will have amazing views that will eventually include the ferris wheel on Bluewaters Island.” Mahdi Amjad, Omniyat’s executive chairman, recently said that the company was in the final stages of enabling works at One at Palm Jumeirah. Tendering for the project’s main contractor has been completed and a contract is set to be awarded in the coming weeks, allowing for the project to be finished by the end of 2017.

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Source: The National

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NOOR BANK OFFERS ‘COMMERCIAL

PROPERTY FINANCE’ FOR CUSTOMERS

FRIDAY 11 SEPTEMBER 2015 Commercial Property Finance is aimed at providing finance to the self-employed and high net worth individuals looking to purchase office space in Dubai and Abu Dhabi. In addition to facilitating the transfer of existing finance that customers may have with other banks, the product will also enable clients wishing to release equity on their commercial properties. This ensures that commercial customers can consider investing in their own properties to save rental expenses in the long term, or buy additional space to cater to their business expansion needs. “The Dubai economy continues to experience steady growth, particularly in the SME sector, which is driving strong demand for commercial finance. The launch of our Commercial Property Finance package will enable investors to take advantage of the growing opportunities in the commercial space, or to release equity that can be reinvested in growth,” Hussain Al Qemzi, CEO, Noor Bank, said. “While there has been a softening of the housing sector, the commercial real estate market has been relatively resilient especially in prominent locations, given that firms tend to take a medium to long-term view. As a consequence the office market remains active across all business segments. This bodes well for buyers of commercial property, who are likely to see a healthy return on their investment,” Qemzi said. Under the programme, Noor Bank will finance ready commercial property such as offices and retail outlets in Dubai and Abu Dhabi. New clients can apply for a maximum finance amount of Dh7.5 million, while existing clients can receive up to Dh10 million, with tenors up to 15 years and finance to value of up to 65 percent. Source: The National Back to Index

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ABU DHABI RESIDENTS CONCERNED

OVER EXCESSIVE UTILITY CHARGES

MONDAY 07 SEPTEMBER 2015 Residents in some of the capital’s exclusive gated communities have expressed concern over what they claim are excessive charges for chilled water since a new utility billing company took over. In July, Al Zeina, Al Muneera, Al Bandar and other Al Raha beach communities had the company responsible for district cooling services changed from Dimarco to Tasleem. Both charge users based on metered consumption of chilled water. Residents, however, are questioning a new “infrastructure service charge” that they claim has resulted in huge increases to their monthly bill. “In effect, this has increased our monthly chilled water charge by between 50 and 300 per cent,” said Briton M W, who has been living in Al Zeina for a year. “In my case, it’s a 132 per cent increase.” The 60-year-old was paying an average of Dh260 a month to Dimarco compared with the Dh600 a month he now pays to Tasleem. He said that 33 per cent of the amount was because of the infrastructure charge. “Without Tasleem’s infrastructure charge, it would still be a 35 per cent increase over Dimarco,” he said. “But with the warmer weather of late, I could accept this. I would liken this to staying in a hotel, then having my room rate doubled to cover hotel maintenance.” A Dutch tenant in Al Zeina said the charges should be based on consumption only. Her Tasleem bill amounted to Dh332 of which Dh44.09 was the metred usage. Dh288 was the infrastructure charge. “The more you use, the more you pay,” I S said. “Also, this would mean that clients that are environmentally conscious are better off.” An Al Muneera resident said he used to pay Dimarco between Dh1,000 and Dh1,200 a year for consumption charges on a three-bedroom apartment, with no fixed monthly fee. “We used to pay Dimarco Dh60 during the normally hot months and Dh150 during the hotter months,” said A L, 40. “My bill for July was Dh354, Dh66 of which was for consumption and Dh288 for what they call the infrastructure service charge,” the Italian said. “It’s unbelievable. You cannot change the company name, provide the same service and ask four times more than what we were paying before.” Emirati A A, however, said he had experienced a drop in prices. “I have owned a villa in Al Raha Gardens since 2010 and in comparison to last year’s June/July bill of Dh1,800, I have seen it drop this year to Dh1,200.” A Tasleem spokesman said the infrastructure charge was “not an additional charge levied by the company, and had always been part of the overall cooling fees paid by consumers”. “Tasleem has separated the infrastructure service charge from the consumption charge to bring greater transparency to customers’ invoices,” he said. “The fee structure is a standard industry practice, and is in line with global benchmarks.”

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Residents also complained of being required to pay a Dh3,000 deposit, 300 per cent more than that charged by Dimarco.The refundable security deposit, the Tasleem spokesman said, had been benchmarked with other cooling service providers across the GCC and was in line with standard industry practice. “The deposit is fully refundable and is duly returned to customers once they vacate their premises,” he said. Source: The National Back to Index

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DUBAI PROPERTY CORRECTION

EXPECTED TO CONTINUE INTO 2016

MONDAY 07 SEPTEMBER 2015 Dubai house prices fell in the two months to the end of August as the city’s property correction continued. According to new figures from broker CBRE, average house prices in Dubai dropped by another 2 per cent during the period, equating to a 6 per cent fall compared with the same period a year earlier. The figures came out on the eve of Dubai’s annual Cityscape Global property exhibition and follow after various reports, each of which made attempts to chart the city’s real estate slowdown. These include statistics published by rival broker Knight Frank last week showing that the Dubai residential property market was one of the worst-performing in the world in the second quarter of the year with greater price slumps than Greece, China and Ukraine. Knight Frank estimated that average prices in Dubai fell 2.8 per cent in the three months to the end of June and 12.2 per cent compared with a year ¬earlier. At the same time property data company Reidin reported a 4 per cent fall in Dubai house prices for the three months to the end of August. It said that average prices in the city stood 7 per cent lower than they had been six months ago and 10 per cent down on their level a year ago. And in a note published yesterday, HSBC estimated that property prices in Dubai at the end of August stood 9 per cent lower than a year earlier, while the number of real estate transactions fell by 15 per cent over the same period. At the start of 2015 JLL predicted that house prices would fall by about 10 per cent during the year. “I think we are pretty much on target to reach that sort of level [a 10 per cent fall] over the year,” said Matthew Green, head of research at CBRE’s Dubai office. “Really what we are seeing is that recently implemented measures such as mortgage caps having the desired effect after the market raced ahead of itself for the previous two years,” he said. “Now we are expecting the slowdown to continue into 2016 as more stock comes on line and the market faces difficult economic ¬headwinds from around the world.” CBRE added that housing rents in Dubai on average remained stable during the period making yields potentially more attractive to investors. The data contradicted Reidin figures which found that rents in the city were down 2 per cent over the last three months and 3 per cent over the last six months. “It’s a very fragmented market at the moment,” Mr Green said. “Although prices are falling, we are also seeing huge currency fluctuations. “So for anyone who bought in euros in Dubai and expects to see further price falls, it would still be possible to sell and still make a tidy profit simply due to the currency movements. This is again creating opportunities for other investors.”

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Source: The National

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UAE RANKED AS SECOND-BEST

MARKET FOR PROPERTY INVESTORS

MONDAY 07 SEPTEMBER 2015 The UAE has the best property investment prospects outside the United States, according to a new report from Savills. The findings came after a raft of other data showing further weakening in the housing market. The study was released ahead of the annual Cityscape Global real estate convention, which opens in Dubai today. Investors at the convention will be looking for signs of a recovery in a market that has recorded steep declines in both prices and transactions this year. Savills ranked the UAE as the second-best market in the world for investors in residential property. The firm’s new World Residential Investability Ranking rates the UAE just below the United States and just above Singapore and the UK based on economic growth and market recovery. The report also places Dubai as the top city outside of the US for investors based on its five-year prognosis for the residential market. Savills said its study ranked 14 countries and their major cities and resorts that have consistently attracted investor interest in recent years. It said that residential values in Dubai dropped in the first half of this year by 7.7 per cent and transaction volumes slowed “amid a wave of new supply and a fall in speculative investment”. David Godchaux, the chief executive of Core Savills, argued that this softening of the market presented a buying opportunity ahead of a likely rebound in Dubai’s property sector as activity increases in the run-up to 2020. “The property market has matured a great deal after the government took measures to stamp out short- term speculators,” he said. “We are confident that investors looking for long-term gains will do well as Dubai is a safe and established global business centre in the Middle East, which has broad appeal to buyers from the region and beyond.” Separate research released yesterday from HSBC also suggested that some recent warnings about the UAE real estate market had been overblown. The possible removal of sanctions in Iran could boost demand for UAE property, according to the bank. The US emerged as the clear winner among global property markets in the Savills report, but the broker warned that local markets varied widely. “There is a world of difference within the USA between top tech cities and languishing Rust Belt ones,” said Yolande Barnes, the director of Savills world research. Savills placed San Francisco, Miami, New York and Los Angeles at the top of its rankings. Dubai came next, supported by positive factors such as domestic wealth creation and population growth. A YouGov survey published yesterday revealed that more than half of UAE investors surveyed were more interested in residential projects than other types of property.

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Speaking at a panel debate during the conference, Tim Rose, head of real estate at Emirates NBD Asset Management, said that he could see developing interest from institutional investors in affordable pro perties for staff members where buildings are let by a single client such as an education provider or a hospitality firm. Source: The National Back to Index

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DUBAI TO RANK PROPERTY BROKERS

BASED ON PERFORMANCE

MONDAY 07 SEPTEMBER 2015 The Dubai Land Department is set to introduce a new system to rank the emirate’s property brokers based on their performance. Ali Abdulla Al Ali, the director of real estate licensing at the department, told the Cityscape Global conference yesterday that the new system would be introduced in January. Brokers will be scored on five factors – experience, number of transactions, commitment to real estate regulations, structure of their offices and social works. The ranking will be weighted, with 15 per cent of the score based on the experience of the firm and the brokers, 30 per cent on the size of transactions carried out, 40 per cent on their adherence to DLD regulations, 10 per cent on the structure of their organisation and 5 per cent on community activity. Half of the community activity category is based on Emiratisation targets, and the other half is on corporate social responsibility. Mr Al Ali said that once scores are up, brokers will fall into one of four categories. Those that achieve a score of up to 70 per cent will be placed in a general category, while those achieving more than 70, 80 and 90 per cent will be ranked in the bronze, silver and gold categories, respectively. “The main reason for this,” Mr Al Ali said, “is to enhance the efficiencies of real estate brokers, to create competitiveness between brokers to provide a better type of service for their clients and to reduce the number of violations in the market from brokers.” He said that Dubai has about 3,550 brokerage firms and more than 7,500 registered brokers. Once the ranking for brokerages is complete, the department will begin to work on an index for ranking brokers. Although it produced rankings for individual brokers as part of its recently launched smartphone app, these were based purely on the volume of transactions that each had carried out. Mario Volpi, the head of projects at Asteco Property Managment and a columnist for The National, pointed out that there were some brokers who scored highly under the DLD’s app simply because they registered many transactions for their firms on behalf of other brokers at the DLD’s licensing centres. One top broker, he said, “worked for a company and signed off every single deal.” Mr Al Ali admitted that it was a problem that the app was based on just one criterion. He said it would be widened in the future, but also added that individual brokers should register their own deals. Source: The National Back to Index

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BLOOM PROPERTIES TO BUILD 302 HOMES NEXT TO NYU’S SAADIYAT

CAMPUS

MONDAY 07 SEPTEMBER 2015 Bloom Properties has unveiled plans to build 302 homes next to New York University’s Saadiyat campus. The Abu Dhabi-based developer, which is owned by the Abu Dhabi conglomerate National Holding, said that the project, which it had branded Soho Square, would comprise 10 storeys of homes ranging from studios to three-bedroom apartments, town houses and penthouses as well as shops and offices. The project will be Bloom’s second on Saadiyat Island. Bloom in April started marketing Park View, a mixed-use development on the island that comprises two buildings – a residential tower and a hotel that will be managed by Rotana. Bloom said it had sold all of the apartments in Park View within “days” of the project’s launch. “Following the massively successful launch of Park View at Cityscape Abu Dhabi 2015, Bloom Properties has received strong interest from investors keen to own a piece of this lucrative investment because of its attractive rental yields and location advantages – in the vicinity of New York University Abu Dhabi campus and in proximity to the cultural centre of Abu Dhabi with its museums,” said Sameh Muhtadi, the chief executive of Bloom Holding. The Saadiyat Island developer TDIC started selling plots of land close to NYU’s recently opened Rafael Viñoly-designed campus in 2012. Unlike the area of the island around Saadiyat Beach, which was developed by TDIC, all of the land around NYUAD has been earmarked to be sold off to private developers. Agents said that house prices for the new apartments would be likely to reflect the fact that construction projects are to remain in the area for the coming ten years. Saadiyat has become one of the most expensive places to live in Abu Dhabi. According to Asteco figures, rents in the Saadiyat Beach area rose the steepest out of anywhere in the city in the year to the end of June 2015, with annual increases of 18 per cent. The broker found that rents in the area increased from Dh120,000 a year to Dh130,000 for a one- bedroom apartment, while those for two-bedroom apartments increased from Dh175,000 to Dh185,000. Annual rents for three-bedroom apartments rose from Dh200,000 to Dh250,000. “Rents in Abu Dhabi as a whole have been increasing quickly and are likely to continue to do so until at least 2017,” said Ben Crompton, the managing partner at Crompton Partners estate agents. Source: The National Back to Index

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JLL CALLS FOR GOVERNMENT ACTION

ON MIDDLE-INCOME HOUSING

MONDAY 07 SEPTEMBER 2015 The governments of Abu Dhabi and Dubai must urgently act to stop middle-income workers being priced out of the housing market, a new report has found. According to the property broker JLL, middle-income workers who perform vital jobs for the economy are being squeezed by high housing rents and prices. The report found that middle-income families in the UAE can afford to pay annual rents of up to Dh72,000 or mortgages on houses worth Dh790,000. Coming out on the eve of Cityscape Global 2015, which showcases hundreds of glitzy off-plan apartments to be built in Dubai, the report said that only 22 per cent of new homes launched so fat this year in Dubai could be classed as affordable to middle-income households. According to JLL’s definition, which includes the middle third of all earners nationally, there are more than 820,000 middle-income households in the UAE, representing almost 40 per cent of the population. JLL’s rival property broker Cluttons said last month that the average annual rent in Abu Dhabi stands at Dh204,000 per property, while the average annual expatriate income is Dh199,000. Despite the market slowdown in Dubai and some moves by the governments to reduce costs for low earners, JLL researchers found that much more needs to be done to alleviate the crisis. This includes providing developers with access to affordable land, reducing the costs of infrastructure for affordable housing projects, promoting industrial approaches to construction and large-scale procurement processes, adapting developers’ business models to make building affordable homes seem more attractive, improving access to mortgage finance and regulating the delivery of affordable homes. A lack of affordable housing is not just a problem for the UAE. According to JLL, countries across the Middle East are suffering from the social and economic impacts of a lack of affordable housing. JLL in 2011 identified the need for an additional 3.5 million affordable homes across the region, a figure it said would have increased significantly over the past four years. It also highlighted Saudi Arabia and Egypt as suffering for a lack of suitable housing stock. In Saudi Arabia, JLL said an affordable sale price for homes would be about 450,000 Saudi riyals (Dh440,700) and an affordable annual rent would be about 47, 000 riyals. In Egypt, the affordable sale price was 285,000 Egyptian pounds (Dh133,700) and annual rent was about 32,000 pounds. “Governments around the region have started to allocate significant financial resources to encourage more development of middle-income housing, but more needs to be done,” said Craig Plumb, the head of research at JLL’s Dubai office. “We believe there is a need to rethink the existing relationship between government and the real estate development industry to create more affordable housing that middle-income families can afford.”

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“We also recommend more innovative planning and design initiatives to create more attractive, environmentally sustainable and cohesive communities as well as accessible financing, empowering middle income families to take a stake in their future,” he added. Source: The National Back to Index

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DUBAI PROPERTY HUNTERS FLOCKING TO MORE AFFORDABLE SECONDARY

LOCATIONS

MONDAY 07 SEPTEMBER 2015 Demand for affordable housing in Dubai is growing, with the Al Furjan community and Jumeirah Village Circle (JVC) being the two most sought-after locations in the first eight months of the year, according to online classifieds portal ¬Dubizzle. The firm’s latest Dubai market report showed that there was a254 per cent increase in the number of inquiries for rental properties in Al Furjan since the start of the year, even though inquiries about properties for sale in the district dropped 25 per cent. JVC, meanwhile, witnessed a 233 per cent increase in inquiries about property for rent and a 152 per cent rise in sales inquiries as more homes in the district are completed and infrastructure in the area ¬improves. The number of completions within communities mean that despite the increase in inquiries, prices have remained fairly steady. Sale prices in Al Furjan have remained at about Dh1,000 per square foot since January, and rents for a three-bedroom home have held at Dh170,000 per year. However, rents for a two-bedroom property have increased almost 30 per cent to Dh142,000 from Dh110,000 in January. At JVC, sale prices have declined marginally to Dh905 per sq ft, from Dh935 in January. Rents have also dropped, with three-bedroom properties now renting at Dh170,000, compared to Dh180,000 at the start of the year. “JVC is still very hot, which is not surprising as the infrastructure is being developed,” said Dubizzle’s property marketing manager, Ann Boothello. “It is one of the more affordable areas, and you get bigger spaces outside. For smaller families and bachelors coming to Dubai, the centre of Dubai is moving. “You have Downtown Dubai, which is an amazing ¬community. It is beautiful, it is self contained and people like to live there for the luxury. “But at the same time, with projects that have recently been announced, like Meydan, you can see that the centre of Dubai is slowly going to start shifting towards the outskirts. You can already see it in the numbers.” Inquiry levels for Downtown Dubai have dropped by 26 per cent for new sales and 18 per cent for rents, with sale prices almost 8 per cent lower at Dh2,400 per sq ft. Dubizzle has also begun tracking movement in the commercial property market. Sales prices and rents remain fairly flat for office space, but demand for retail space is soaring, it said.

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Dubai-wide retail sale prices have jumped 50 per cent to Dh1,500 per sq ft and rents are up 62 per cent to Dh243,000 per year for a 500 sq ft to 1,000 sq ft unit.

The company also listed the top 10 nationalities of those searching to buy or rent ¬property. Indians were the biggest source of inquiries regarding properties for sale, followed by Pakistanis and Emiratis. Filipinos and Egyptians made up the rest of the top five. Source: The National Back to Index

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CZECH DIAMOND COMPANY TO BUILD FIVE-STAR HOTEL ON RAK’S AL

MARJAN ISLAND

MONDAY 07 SEPTEMBER 2015 Diamonds International Corporation, a Czech diamond trading company, yesterday announced plans for a Dh500 million project on Ras Al Khaimah’s man-made Al Marjan Island. The development will include a 300-room, five-star hotel, 340 residential apartments and 40 water villas. Construction is expected to begin next year and the project is to be ready in three years. The four islands are expected to be fully operational by 2022, according to Abdullah Rashed Al Abdooli, the managing director of the master developer Al Marjan Island Development. He also said that despite the slowdown in the real-estate market and fluctuating global oil prices, plot prices at the development have increased by 5 to 10 per cent this year. Last year, the developer closed three deals with investors on three of its islands. The majority of the investors are from India, Russia, the Arabian Gulf and the local market. “There is a correction in Dubai [real estate market] but Ras Al Khaimah is still steady because it has its own demand, and we are targeting end-users and investors who are looking to achieve their target and return on investment,” said Mr Al Abdooli. “The global situation would affect us, but not to the extent that would damage the market.” The master developer of the islands is offering plots worth billions of dirhams at Cityscape Global in Dubai from today. Mr Al Abdooli declined to give the exact figure. Of Ras Al Khaimah’s 19 hotels, three – Rixos Bab Al Bahr, Double Tree by Hilton and Marjan Island Resort and Spa – operate on the islands. A 265-room Santorini Hotel owned by the Bin Majid Hotel Group is also coming up on Al Marjan Island. Source: The National Back to Index

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MINOR HOTEL GROUP TO BUILD ANANTARA RESORT IN RAS AL

KHAIMAH

MONDAY 07 SEPTEMBER 2015 Thai hotel owner and operator Minor Hotel Group will enter Ras Al Khaimah with a luxury waterfront Anantara property. The 225-room Anantara Mina Al Arab Ras Al Khaimah Resort, expected to open in 2018, will feature Maldivian-style water villas. The project will include residential, hospitality and retail components. Abu Dhabi-listed RAK Properties owns mixed-use Mina Al Arab development. Shares of RAK Properties closed at 56 fils on Tuesday, down from Dh1.02 a year ago. It reported a net profit of Dh22.69 million during the first half, down from Dh51.62 million for the same period last year. The RAK hotel would overlook the mangroves and the area around the reserve will remain undeveloped to preserve the wilderness, according to the hotel group. “The Middle East is a key market for Minor Hotel Group, both for outbound business to our properties worldwide, and also to further expand our footprint within the region,” said Dillip Rajakarier, the chief executive of Minor Hotel Group, in a statement. The group, which has 10 hotels and resorts in the Middle East, has two Anantara resorts under development in Oman – in Jabal Al Akhdar and in Salalah, and a second Anantara in Dubai after Palm Jumeirah at Culture Village with 290 guest rooms. It is expected to open in 2018. Minor Hotel Group has also announced projects in Morocco and Tunisia. On Monday, the hotel group announced a 500-key Avani hotel in Nakheel’s Deira Islands. The Avani property is expected to open in 2018. Deira Islands will feature resorts, residences, a shopping mall, a waterfront night market and an amphitheatre. With Avani, Nakheel has 1,250 hotel rooms in its pipeline now through joint ventures at Deira Islands. Source: The National Back to Index

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DUBAI’S MALL OF THE WORLD MASTER PLAN REVAMPED FOR TRANSPORT

SYSTEM

TUESDAY 08 SEPTEMBER 2015 The master plan for Dubai Holding’s Mall of the World has been reworked to make it a more transport- friendly location, said the development’s new chief operating officer Morgan Parker. The layout of the site has been changed to make it more “permeable”, with roads running through to create a series of retail boulevards. An integrated transport hub linking the metro, three tram lines – including a branch to Arabian Ranches – and a major new bus interchange will also be a feature of the site, Mr Parker added. “We hope to partner with the RTA and other government municipalities,” Mr Parker said. “Who pays for that, we haven’t worked out yet. The idea, though, is by creating this transport hub we can create the highest value real estate in the city. Where there’s people, there’s vibrancy. And where there’s vibrancy and energy, there’s value.” The Dh25bn Mall of the World project was first unveiled last year. Dubai Holding had said last year that tenders for the first phase of the project were likely to be awarded in the first quarter of this year, with probable completion by the first quarter of 2018. That timetable now appears to have been ambitious. For instance, Mr Parker said that 60 per cent of the Mall of the World site is still occupied by Dubai’s Police Academy. And although a new facility is being built to replace this, it is not likely to be ready for at least two years. “The responsibility of moving Dubai’s Police academy, where all of the new recruits come in and get trained, is significant. It’s an important part of Dubai’s security apparatus.” Designs are being worked up for the remaining 40 per cent of the site, but Mr Parker could not say when the project is likely to break ground. He said that the first phase would contain all five elements of the site’s wider offer – retail, office, residential, hospitality and entertainment. “I’m not going to build 3,000 hotel rooms if there’s no demand for it. That would just be silly. It depends on market demand, the availability of land and the infrastructure required to service those buildings,” Mr Parker said. Source: The National Back to Index

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AL ZORAH LAUNCHES TWO LUXURY PROJECTS IN AJMAN

TUESDAY 08 SEPTEMBER 2015 Hundreds of homes at Ajman’s most high profile property scheme are being marketed as property developer Al Zorah presses ahead with long-held plans to build out 5.4 million square metres next to the emirate’s creek. Al Zorah Development, a joint venture between Lebanese developer Solidere and the government of Ajman, launched two new projects at its ambitious Ajman nature reserve scheme comprising 935 homes. The first will have 800 homes overlooking the scheme’s recently completed 18-hole, Jack Nicklaus- designed golf course, while 130 homes will be built close to the beach. Al Zorah said that prices for the beach properties ranged from Dh1,250 to Dh1,600 a square foot, while those overlooking the golf course were being sold at less than Dh1,000 a sq ft. Currently, the developer says it has completed infrastructure work, and a first phase of 42 villas – due for completion next year – are already sold. The move comes despite a recent decline in house prices in Dubai, which is likely to have a knock-on effect on the northern emirates. “Al Zorah is being sold at prices which are perhaps 30 per cent lower than a comparable project in Dubai,” said Imad Dana, the chief executive of Al Zorah. “But the market in Dubai is not a problem for our project. We are not putting a huge amount of stock on the market and we are seeing a lot of investors who want to live in Ajman.” The project, launched in 2008 with the aim of putting Dubai’s tiny neighbour on the tourist map, has had a rough ride. Its initial launch coincided with the global financial crisis, which left the high-profile scheme in limbo and led to a redesign. Source: The National Back to Index

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ABU DHABI RENTS ARE SECOND-

HIGHEST IN THE WORLD

TUESDAY 08 SEPTEMBER 2015 Average monthly rents in Abu Dhabi are the second most expensive in the world, exceeded only by those in London, a new report has shown. According to CBRE’s Global Living Report, average monthly rents in Abu Dhabi now stand at US$2,649, while in Dubai which came sixth on a global poll, they reached $2,317. London was revealed as the most expensive city in which to lease a home with monthly rents of $3,245 while Singapore, Los Angeles and New York claimed third, fourth and fifth spots respectively. Tenants in Abu Dhabi also saw the second highest rent rises in the world over the past year, with increases across the board of 12 per cent, the report said. Edinburgh was the only world city to see higher rent rises last year with increases of 19 per cent, while despite a property market slowdown in Dubai, the city still saw the seventh highest rent increases in the world last year with average rises of 7 per cent. However, when looking at house prices rather than rents neither Abu Dhabi nor Dubai featured in the top 10, the report said where Hong Kong, London and New York were the leaders. Dubai emerged as the 11th most expensive residential location in the world, according to the report with house prices per square foot standing at $452, while Abu Dhabi came in 14th spot with prices per sq ft of $379. By contrast house prices in Hong Kong stood at $1,416 per sq ft and in London they were $1,025. The combination of high rents and relatively low house prices combined to give Abu Dhabi investors the fifth highest residential property yields in the world the report said with annual returns of about 7 per cent. Dubai residential yields came out seventh highest in the world last year at about 6.5 per cent. The report was published on the first day of the Cityscape property exhibition in Dubai amid news that prime house prices in the city are continuing to fall amid a market slowdown. “We conducted this research because wherever we went in the world clients wanted to know how residential investments compared with each other,” said Jennet Siebrits, head of residential research at CBRE. “What we discovered was that the Dubai and Abu Dhabi residential markets are considered ‘affordable’ when compared with London, New York or Hong Kong,” she added. “Both Abu Dhabi and Dubai have very high yields and aren’t subject to tax which is very attractive to international investors. Source: The National Back to Index

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DUBAI LUXURY PROPERTY PRICES

CONTINUE TO WEAKEN

TUESDAY 08 SEPTEMBER 2015 Prices continue to weaken at the top end of Dubai’s property market, although the correction elsewhere is tailing off, according to a new report. But some affordable communities are still seeing sales growth, according to consultancy Asteco. The company said prices at the luxury end of the market have dropped by an average of 10 per cent, although apartments in Dubai Marina have dropped in value by as much as 17 per cent and Palm Jumeirah units have fallen by 13 per cent. In contrast, more affordable communities have witnessed price growth – apartment sales prices climbed by 3 per cent in International Media Production Zone, by 4 per cent in Discovery Gardens and by 2 per cent in Dubai Silicon Oasis. Asteco’s managing director, John Stevens, said that newly launched schemes that are reasonably priced and offer good payment plans are continuing to attract investor interest, although, with affordability now seen as a major selling point. “The second half of the year will see around 7,000 units come online, and while average rental rates have been relatively stable over the last few months, albeit with significant differences between areas, we expect the new stock to exert further downwards pressure in the next few months, and through to 2016 with 13,000 more apartments due for completion,” said Mr Stevens. Rents and sale prices in Abu Dhabi have remained stable since the summer, but there has been a general slowdown in transactions, Mr Stevens said. He added that with limited supply available, he expects the market to hold steady. “Annual rental rates for apartments and villas have increased by an average of 18 per cent and 9 per cent respectively, over the last three years, with the growing confidence and improved sentiment in the Abu Dhabi market over the last two years boosting investor ROI [return on investment]. However, the decline in oil prices has prompted a general slowdown in investment this year,” he said. Apartments at Al Raha Beach and on Saadiyat Island recorded the highest yearly sales price increase with Al Bandar and Al Muneera up by 12 per cent and 9 per cent respectively. A typical apartment in Al Bandar now sells for between Dh1,500 and Dh1,800 per sq ft. Source: The National Back to Index

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MAG PROPERTY DEVELOPMENT TO SHOWCASE THREE-TOWER CLUSTER AT

CITYSCAPE GLOBAL

TUESDAY 08 SEPTEMBER 2015 MAG Property Development is planning to build a three-tower cluster within Dubai’s Jumeirah Lakes Towers community. The firm is showcasing the project at the Cityscape Global exhibition. Tariq Bsharat, the executive director of strategy and operations, said that the company hopes to be able to launch the project within the next six to nine months. The cluster will border the Emirates Hills and Emirates Living communities and it is envisaged that the towers will each be about 40 storeys high, although Mr Bsharat said that the project remains subject to its plans meeting the necessary approvals. The towers will contain retail, hospitality and residential elements. “We are excited about it,” he said. “It will be a premium to what is available in JLT. We feel there is a lot of opportunity to add to the offering in JLT.” MAG Property Developments, part of the Syrian entrepreneur Moafaq Al Gaddah’s MAG Group, has already built the MAG 214 tower within JLT and also has a number of other, single-tower plots it plans to bring forward in the future. Mr Bsharat said that MAG 214 had been well received by both clients and customers and that JLT offered a decent opportunity for investors as there is a price differential with Dubai Marina, which will reduce as the area matures. “I think there is a certain image of JLT in a lot of people’s minds from five or six years ago, but for newcomers it seems to be one of their most-favoured places. “The infrastructure has been put into place and the transition from lakes to parks really make it an integrated community with some great offerings. But I think the retail component can be greatly improved. That is where we think the value is.” MAG Property Development is also set to launch the second phase of sales for its Mag 5 Boulevard joint venture within the Dubai South district at Cityscape. “Right now, we are focusing on finalising our first phase clients and getting the contractor going. We envision a contractor being on site by November,” said Mr Bsharat. Meanwhile, the Wasl Properties’ chief executive Hesham Al Qassim said that his company is planning to develop 24 new projects containing 10,400 new residential units on top of the Dh40 billion worth of freehold projects already announced through schemes such as Wasl Park 1, Wasl Gate and Nad Al Hammar Gardens. Speaking at the Cityscape Global conference on Monday, he said that the recent slowdown in the market presented opportunities for those interested in buying property in Dubai.

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“Always, when there is a correction in the market, it is the right time to buy. I think the correction will continue until 2016. In 2017, we will start to see growth.”

Source: The National Back to Index

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DUBAI’S PALM JUMEIRAH TO GET NEW BEACH WITH LATEST NAKHEEL

PROJECT

TUESDAY 08 SEPTEMBER 2015 Dubai’s Palm Jumeirah is set to get a brand new beach, park and retail complex stretching a mile along the trunk of the an-made island. The Palm Promenade is the latest addition to the developer Nakheel’s flagship project and will connect the area’s 30 apartment buildings with Al Ittihad Park and the other retail and dining outlets. “The Palm Promenade is all about connectivity, walkability and accessibility,” said the Nakheel chairman Ali Rashid Lootah. “The project promotes a healthy lifestyle and social, environmental and economic sustainability by encouraging people to walk, cycle, meet and socialise, and will boost business in the area with easier access to the ever-expanding range of retail facilities there.” Nakheel has stepped up investment on the island over the past three years with a number of additions that include the Palm Tower and The Pointe retail and entertainment complex. Under the plans for this latest project, all elements of the Palm Jumeirah trunk will be connected with one another. The Palm Promenade project also includes upgrades to the design of Palm West Beach, Nakheel’s new park, dining and beach club facility for the island. New features include two children’s fountains, retail facilities and parking for 700 vehicles. Separately, the developer also unveiled its new Jebel Ali Gardens project yesterday, comprising almost 10,000 apartments in 42 buildings spread across a 5.5 million square foot site. Jebel Ali Gardens will also include more than 1.1 million square feet of landscaped parks, around one fifth of the site area. It will also include a 2 km jogging track, swimming pools and other recreational facilities. Source: The National Back to Index

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DUBAI SOUTH PLANS MID-MARKET VILLAGE IN TREND TOWARDS

AFFORDABLE HOMES

TUESDAY 08 SEPTEMBER 2015 The property developer ¬Dubai South is planning to build a Dh25 billion ¬middle-income residential ¬project near Dubai’s new ¬airport as luxury becomes more difficult to sell amid an economic slowdown in the UAE. The company, formerly known as Dubai World Central, said it would start to build the cluster of villages next year. The proposed city, also called Dubai South, will be built on a total of 145 square kilometres of land near Al Maktoum International ¬Airport. A further three to five villages are envisaged in the near future, said Mohammed Al Awadhi, a vice president at Dubai South. The idea behind the city is to build smaller housing projects and provide each of them with services such as schools, moving away from huge projects of the past that are served by one big hub. “Usually, the expansive layout of a city compels many of us to spend hours every day, commuting to schools, ¬workplaces, retail and wellness centres,” said Mr Al Awadhi. “Not only does this increase stress, but the time could have been used in a more gainful way elsewhere.” The first village, which will encompass 6,000 units ranging from apartments, villas and town houses, will be completed in 2019. Pricing for units will be announced towards the end of the year, said Mr Al Awadhi. In this country developers are moving towards more affordable housing as the drop in oil prices puts a damper on the economy. Property sales transactions for high-end real estate has dropped, according to business executives. Tirad Al Mahmoud, the chief executive of Abu Dhabi Islamic Bank, said during the summer that, despite the slowdown in the overall mortgage market, there is still healthy demand for what he described as middle-income housing. “Demand for luxury ¬housing costing more than Dh20 million has dwindled, while units up to Dh2m still had interest,” Mr Al Mahmoud said. Over the past 12 months, demand for mortgages has slowed to single-digit growth from double-digit growth in the previous year as house prices become difficult to afford, banking executives have said. Meanwhile, rents have been rising. Housing rents in Abu Dhabi alone rose by 12 per cent last year and another 2 per cent in the first quarter of this year despite the oil price retreat, according to data from the property broker CBRE.

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Source: The National

Back to Index

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AL HABTOOR WARNS OF DUBAI HOTEL

OVERSUPPLY AHEAD OF EXPO 2020

TUESDAY 08 SEPTEMBER 2015 Khalaf Al Habtoor has urged banks and tourism chiefs to exercise caution in approving new projects as the city adds thousands of new hotel rooms. Dubai has introduced a series of measures encouraging investment in mid-range rooms to accommodate the city’s 25 million visitors expected by 2020. These include shorter approval times for hotel building permits and the granting of land plots to Emirati investors willing to build new three- and four-star hotels. The market has responded accordingly, with scores of new hospitality projects announced since Dubai won its Expo bid in 2013. But the chief of one of the region’s biggest conglomerates warned against overbuilding. “I advise everybody – the banks and the tourism department that they should be careful,” Mr Habtoor said at the Cityscape exhibition in Dubai yesterday. “They have to have independent international finance companies to do their forecasts and feasibility studies. Without that, they should not approve. The banks shouldn’t give millions to build hotels. That is dangerous, because we want to protect the name of Dubai from somebody going into bankruptcy,” he said. “We hold the banks responsible and the tourism [department] responsible. They should not approve formation for a hotel without a feasibility study by a big international company.” According to JLL, Dubai has a stock of 65,000 hotel rooms. Estimates of the amount of new rooms required by the city vary between 30,000 and more than 65,000. • Nakheel boss dismisses talk of Dubai hotel oversupply Faisal Durrani, global research manager for consultancy Cluttons, argued that there is plenty of potential for Dubai’s hotel market even beyond 2020. “Hotel occupancy is still 80 per cent and there are still 12 million to 13 million people coming in every year. To hit that 20 million target you need a whole lot more hotels and you need a whole lot more tourism-supporting infrastructure,” he said. “If you have London, where you have something like 130,000 hotel rooms and about 18 million tourists per year … if you look at the ratios, Dubai is still behind in those terms.” The Government-owned developer Wasl Asset Management has said it is planning to double its stock of hotels by 2020, adding 14 new hotels that will contain up to 5,000 rooms. Most of these are three- and four-star properties, although it is bringing in a Mandarin Oriental and an Elements by Starwood brand. Millennium & Copthorne and Deyaar said yesterday that they would jointly develop and manage 1,000 rooms in new hotels across the country. Dubai’s Department of Tourism and Commerce Marketing was not immediately available for comment.

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Mr Al Habtoor’s own group is putting the finishing touches to three Starwood hotels – a W Hotel, a Westin and a St Regis – at his $3bn Al Habtoor City project overlooking Sheikh Zayed Road in Business Bay. The three hotels are expected to be open by the end of the year, he said. A circular theatre venue designed by the Cirque du Soleil creator Franco Dragone is set to complete by June next year, while a cluster of three residential towers, two of which are 75 storeys high, should be completed by the end of next year. Mr Al Habtoor said the combination of uses at the site is unique. “You will not find this project in London, Paris, New York or Berlin. If you find such quality and variety, I will give you the air ticket,” he said. He also said that despite the softer market for luxury residential properties in Dubai, he is confident of being able to sell his units at the rate his firm has set. “I don’t think any location compares to ours. If we want to sell, we dictate our price. We either sell at our price, or we don’t sell. We are not coming here hungry.” Source: The National Back to Index

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DEYAAR TO ADD 1,000 NEW HOTEL

ROOMS IN THE UAE

WEDNESDAY 09 SEPTEMBER 2015 Deyaar will open hotels in the UAE that would add around a thousand new rooms even as hotels feel the pressure of high-room inventory, especially in Dubai. Dubai-based Millennium and Copthorne Hotels would operate the Sharia-compliant hotels that are expected to come on stream by 2020. “Deyaar has allocated up to one million square feet of land for hospitality projects as part of our growth strategy,” said Saeed Al Qatami, the chief executive of Deyaar, in a statement. Dubai-listed Deyaar reported an operating profit of Dh70.9 million at the end of the first half, down from Dh119.8m during the same period last year. Last year Deyaar launched a four-star hotel apartment tower and a 30-storey residential tower called The Atria in Business Bay that is expected to open in 2017. The company is also developing a serviced apartment tower along with two residential towers called Montrose in DuBiotech expected to be complete next year, besides another project in Al Barsha. More hotel rooms are being added in Dubai than the demand so far this year, according to the research company STR Global. The average room rate in the emirate in July fell 2.2 per cent year on year to below Dh600. Millennium and Copthorne Hotels is expected to open three hotels in Abu Dhabi over the next three years. bringing 1,300 rooms as part of the 677-room Bab Al Qasr near Emirates Palace, a 280-room Biltmore Hotel, and 300 serviced apartments on Reem Island. “We have aggressive growth plans for the Middle East and Africa region, with an aim to open 100 hotels by 2020,” said Ali Hamad Lakhraim Alzaabi, the president and chief executive of Millennium and Copthorne Hotels for Middle East and Africa, in a statement. Source: The National Back to Index

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DANUBE ADOPTS AFFORDABLE HOUSING AT EASY PAYMENTS AS ITS

NEW WINNING STRATEGY

WEDNESDAY 09 SEPTEMBER 2015 While the Dubai property market may have softened in the first half of this year, the developer Danube has sold through its third phase in Dubai’s Studio City of development in two months after bringing in an easy-payment programme. Demand has been so strong that Danube said it would be announcing two more similar developments before December, without providing details. Danube has targeted affordable housing offering studio apartments for Dh475,000 and three-bedroom apartments for Dh1.3 million with a 1 per cent per month payment deal. “People still have money, they just don’t want to risk it,” said Rizwan Sajan, the chairman of Danube. “Our first two phases of development were town houses, which sold out very quickly, but I saw a greater demand for more affordable residences so we are building apartments at a fraction of the cost to other developers,” he said. “I can buy land cheaper now because of the uncertainty in the market and I don’t pay any margin on 65 per cent of the building materials because of my original business. I spend Dh300 million to Dh500m developing the projects, which I can finance myself.” The property consultant Clutton reported a 2 per cent drop in prices year-on-year for the first half of this year, with villa prices dropping 13 per cent year-on-year. Meanwhile, Sharjah Waterfront City, the Dh9.3 billion development by Sharjah Oasis adjacent to the Hamriya Freezone, is targeting GCC and Arab nationals with a family lifestyle offering. The villas and apartments will be freehold to GCC nationals and available to western expatriates on 99- year leases. The first phase will incorporate two hotels, 400 serviced apartments, 1100 villas and a water park. Other phases of the development are planned once demand can be properly gauged. “The timing of this launch is critical,” said Hayssam El Masri, the president of Sharjah Oasis. “We are offering something that has not been offered in Sharjah before and there is a pent-up demand for this type of development. We are only 40 kilometres from Dubai, yet have all Sharjah has to offer with all its benefits. It is affordable luxury that will not be at the levels of Dubai. We will appeal to the mid-income earners who have few options right now in Sharjah.” The two different strategies of targeting lower earners and more culturally appropriate housing to drive property sales is a symptom of a market that has priced out many and ignored others, said industry experts. “Affordable housing has been ignored. On average people are paying 50 per cent, or more, of their annual income in rent – that is untenable,” said Faisal Durrani, the head of research for Cluttons. “We see 20,000 new units being added in Dubai by 2017, and 70 per cent of those are villas so we don’t see price rises there. With Sharjah Waterfront City the development is unchallenged and there is a huge

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demand from Syrian buyers because of cultural and economic factors. On average in Sharjah one will pay Dh500-Dh600 per square foot, whereas in Dubai one will pay Dh1,400 per sq ft.”

Source: The National Back to Index

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TANMIYAT TO DELIVER ALL 500 VILLAS AT DELAYED LIVING LEGENDS PROJECT

IN DUBAILAND

THURSDAY 10 SEPTEMBER 2015 The developer Tanmiyat is set to deliver all 500 of the villas at its delayed Living Legends project in Dubailand by the second quarter of next year, according to the company’s property management agency Delta International Real Estate. The company has just announced the completion of the project’s first phase of 172 villas, although a lack of electricity and water connections to the site means that the first residents are unlikely to move into their new homes until the new year. Moreover, one of the 12 apartment blocks, building 10, is also ready for occupation, said Delta International’s chief executive, Saleh Tabakh. The Saudi Arabian property developer Tanmiyat launched the Living Legends project in the Al Barari area of the city in 2006, aiming to finish work between 2008 and 2010. However, the project was halted during the financial crisis and only restarted in 2012. Mr Tabakh said that a lot of work has been completed this year. At the start of the year, only 46 per cent of the site’s infrastructure had been completed. Today, that figure is 80 per cent. “In terms of handover, it will be three phases, but we are accelerating the work so hopefully we can try to have all of the villas completed by the second quarter of next year. In every villa, they have completed construction 100 per cent. The only thing is finishing – interior work and gardening work.” He added: “As with any other project in the market there was a slowdown, but in my opinion Tamniyat were brave enough to come back and say, ‘we are committed and we have delivered’.” He said that the work of Dubai’s Roads and Transport Authority had encouraged several other developers in the Al Barari district of Dubailand to progress their projects, describing the area as “a massive construction site”. This week Tanmiyat announced that it was planning to develop a pair of high-rise buildings at Living Legends containing 750 apartments, known as Skyline Towers. These will sit on top of a new mall serving the community and are scheduled to be completed by 2018. “It’s called Skyline because it’s one of the very few angles in Dubai where you see the entire skyline,” said Mr Tabakh. The developer is completing the approvals project for Skyline Towers, but Mr Tabakh said he hoped for a launch at the Dubai Property Show in Mumbai on November 7. He added that site work was likely to start at the end of the year. He said that the work of Dubai’s Roads and Transport Authority had done building new roads encouraged several other developers in the Al Barari district of Dubailand to progress their projects, describing the area as “a massive construction site”.

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Source: The National Back to Index

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PALA ZZO VERSACE HOTEL IN DUBAI TO

OPEN IN DECEMBER

THURSDAY 10 SEPTEMBER 2015 The Palazzo Versace hotel in Dubai will finally open its doors before Christmas – almost a decade after work on the project began. Raza Jafar, the chief executive of the hotel’s developer, Enshaa, said that the property in the Culture Village district would open “within the next 90 days”. Speaking at the Cityscape Global exhibition, Mr Jafar said: “Our entire focus is on delivering current projects to the satisfaction of our clients and to the opening of the hotel.” He said that the building completion for the accompanying Palazzo Versace residences had begun in Dubai and units were being handed over to customers at a rate of four per week. Handovers have also begun at the neighbouring 80-storey D1 Tower, which contains 518 apartments. Mr Jafar said that all but about 30 of these had been sold in advance of the opening, while just 20 of the 169 Palazzo Versace residences remain to be sold. He added that some of the issues surrounding the delivery of the hotel, which had an initial completion date of 2008, were because of the lack of infrastructure at Culture Village. “The only project being delivered over there is our project, which we delivered despite all of the shortcomings the area had over the last few years, with no infrastructure, no road access, no electricity. We generated our own electricity and did whatever a developer can to ensure a good-quality delivery.” Despite this, Mr Jafar believes the creekside location of the project “is the best area in our view” in Dubai. “It is 10 minutes’ drive from The Dubai Mall, 10 minutes from the airport and it’s right on the creek, where the history of trading began in this whole region.” Mr Jafar said that once the hotel was operational, the company would begin to look at other opportunities in the hospitality sector. It does not have any more plots in Culture Village but is “open to exploring the possibility of building more in that area”. He said: “We would be open to joint ventures and partnerships with people who have.” He added that developers capable of delivering successful five-star hotels in Dubai could probably replicate this in other parts of the world. “To survive and excel in the world of hospitality in Dubai clearly establishes you globally because this is one of the most difficult places to stand out. There are a large number of five star-plus developments and the standard of services are so high that to be an outstanding performer here will definitely make you a global hospitality player.” Dubai Properties’ chief executive Abdullatif Al Mulla said that although infrastructure in Culture Village had been lacking, the company has worked hard over the past year to get the site ready. “Today, I can tell you that the infrastructure is now almost complete. We have worked with the authorities on new entrances and exits. This should be done within a few months. Landscaping is also something we are working on.”

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Source: The National

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FAIRMONT NORTH RESIDENCE PENTHOUSE BRINGS A TOUCH OF

RALPH LAUREN ON PALM JUMEIRAH

THURSDAY 10 SEPTEMBER 2015 The Royal Penthouse in the Fairmont North Residence on Palm Jumeirah has all the fine trimmings expected from such a regally named abode. There are five bedrooms – all en suite – an outdoor swimming pool, staff quarters, four parking spaces and a private lift direct from the car park. And with a total area of 13,000 square feet – of which approximately 9,000 sq ft is built up – it is the largest occupied penthouse on the trunk of the Palm according to Fine and Country, the broker marketing the property. But something that offers everything can only be afforded by the few – and the property comes with an asking price of Dh45 million. To some, the idea of a penthouse can be a little restrictive – conjuring up visions of enclosed – albeit very comfortable– ivory towers, rather than the wide open spaces. However, spread over two floors, this penthouse offers deep, cavernous spaces with windows and Juliette balconies that create an Italian styled, baroque ambience that belies the building’s modernity. There are also five separate outdoor terraces spread over 4,000 sq ft around the property – offering views of the Arabian Gulf as well as the Dubai Marina skyline and the Palm itself. One terrace holds the apartment’s own outdoor swimming pool – with two separate changing rooms and shower facilities, of course. The fully furnished penthouse also offers a private study, two sitting rooms, staff quarters and a dining room with a custom made table by Ralph Lauren from Harrods in London. All the fixtures and fittings are of a similar calibre and quality and the kitchen comes with a breakfast terrace. The building has a 24-hour concierge service and a full security team as well. But there’s more ... If the privacy becomes overwhelming, the luxury pad has a direct link to the Fairmont Hotel and access to all of the facilities offered at the 5-star hotel resort, including 24-hour room service. The hotel can be your personal kingdom with the run of its gourmet restaurants, cafes, swimming pools, gym, spa and waterfalls plus 460 metres of beach. Q&A Yasin Valimulla, associate director with broker Fine and Country, tells Andrew Scott more about the luxury Palm Jumeirah penthouse: Do many hotels sell their top floors?

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Well the Fairmont Residences on the Palm are the north and south tower while the Fairmont Hotel is the middle tower. They are part of one development that works to service both tourists and residents. The South Tower penthouse is owned by a Kazhakstani gentleman who uses it as a holiday home. Many of the residents in the towers are Russian and Kazhakstani, however, the North Tower penthouse is owned by a Briton. The Fairmont Hotel does have its penthouse for sale but it’s a massive space at 40,000 sq ft – so the correct client has yet to be found for it. Have you noticed the downturn in the Russian market? Obviously there are fewer buyers from Russia at present and the softness in the market has been noticeable for about 18 months. Saying that, we are still seeing Russians and others buying at this level. The north penthouse has been on and off the market for the past year as a few buyers put offers forward and then pulled out for financial or personal reasons. How is the market for such-high-value properties currently? There has been interest from Saudi, Egyptian and Russian buyers but they have not translated into sales. In this market the price is negotiable but the Palm has not seen the drops that other parts of Dubai has – possibly 6 per cent versus 15 per cent in other areas. Source: The National Back to Index

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WHAT NEXT FOR PROPERTY IN DUBAI,

ABU DHABI AND BEYOND?

FRIDAY 11 SEPTEMBER 2015 The Royal Penthouse in the Fairmont North Residence on Palm Jumeirah has all the fine trimmings expected from such a regally named abode. There are five bedrooms – all en suite – an outdoor swimming pool, staff quarters, four parking spaces and a private lift direct from the car park. And with a total area of 13,000 square feet – of which approximately 9,000 sq ft is built up – it is the largest occupied penthouse on the trunk of the Palm according to Fine and Country, the broker marketing the property. But something that offers everything can only be afforded by the few – and the property comes with an asking price of Dh45 million. To some, the idea of a penthouse can be a little restrictive – conjuring up visions of enclosed – albeit very comfortable– ivory towers, rather than the wide open spaces. However, spread over two floors, this penthouse offers deep, cavernous spaces with windows and Juliette balconies that create an Italian styled, baroque ambience that belies the building’s modernity. There are also five separate outdoor terraces spread over 4,000 sq ft around the property – offering views of the Arabian Gulf as well as the Dubai Marina skyline and the Palm itself. One terrace holds the apartment’s own outdoor swimming pool – with two separate changing rooms and shower facilities, of course. The fully furnished penthouse also offers a private study, two sitting rooms, staff quarters and a dining room with a custom made table by Ralph Lauren from Harrods in London. All the fixtures and fittings are of a similar calibre and quality and the kitchen comes with a breakfast terrace. The building has a 24-hour concierge service and a full security team as well. But there’s more ... If the privacy becomes overwhelming, the luxury pad has a direct link to the Fairmont Hotel and access to all of the facilities offered at the 5-star hotel resort, including 24-hour room service. The hotel can be your personal kingdom with the run of its gourmet restaurants, cafes, swimming pools, gym, spa and waterfalls plus 460 metres of beach. Q&A Yasin Valimulla, associate director with broker Fine and Country, tells Andrew Scott more about the luxury Palm Jumeirah penthouse: Do many hotels sell their top floors? Well the Fairmont Residences on the Palm are the north and south tower while the Fairmont Hotel is the middle tower. They are part of one development that works to service both tourists and residents. The South Tower penthouse is owned by a Kazhakstani gentleman who uses it as a holiday home. Many of the residents in the towers are Russian and Kazhakstani, however, the North Tower penthouse is owned

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by a Briton. The Fairmont Hotel does have its penthouse for sale but it’s a massive space at 40,000 sq ft – so the correct client has yet to be found for it.

Have you noticed the downturn in the Russian market? Obviously there are fewer buyers from Russia at present and the softness in the market has been noticeable for about 18 months. Saying that, we are still seeing Russians and others buying at this level. The north penthouse has been on and off the market for the past year as a few buyers put offers forward and then pulled out for financial or personal reasons. How is the market for such-high-value properties currently? There has been interest from Saudi, Egyptian and Russian buyers but they have not translated into sales. In this market the price is negotiable but the Palm has not seen the drops that other parts of Dubai has – possibly 6 per cent versus 15 per cent in other areas. Source: The National Back to Index

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JUMEIRAH ADDS COMMUNITY ASPECT

TO AL ANDALUS

SATURDAY 12 SEPTEMBER 2015 A large new community centre at Jumeirah Golf Estates featuring retail, food and beverage outlets and a hotel is likely to start construction early next year, according to the chief executive Yousuf Kazim, with completion likely by the second quarter of 2018. Mr Kazim said that work on the project would run alongside the building of the first two of eight planned apartment buildings in the new Al Andalus district, which are set to be delivered at the same time. “Frankly, we wanted to accelerate the retail and the hospitality, so we are really looking at it in parallel. When the customers will be coming in, they’ll find the facilities already within the community.” Jumeirah Golf Estates initially held a soft launch of Al Andalus in May this year but announced construction of the first two blocks – one 10-storey and one 12-storey containing a combined 180 units, at Cityscape Dubai last week. In total, Al Andalus will contain 674 apartments and 55 townhomes. He said the community facilities would be built in the middle of Al Andalus and would serve the whole of the first phase of Jumeirah Golf Estates. “We are awarding the contract for enabling and infrastructure towards the end of this month,” said Mr Kazim, “At the same time, towards the end of the year we will have the awards for the contractors for the two [residential] buildings as well.” The company has branded the apartments as affordable luxury, and Mr Kazim said it is keen to start construction as it is offering a payment plan with stages linked to completion targets. Buyers will pay 10 per cent upfront, 70 per cent over the two-year construction phase and a final 20 per cent on handover. Mr Kazim said he also hopes to be able to announce deals with retailers and an operator for the hospitality elements soon so they can give their input into this part of the project ahead of work starting. He argued that work by the RTA to improve the road network around the area should finish at about the same time as these buildings complete. Al Fay Road will run alongside the development and is being extended to have six lanes in each direction. It connects at the interchange with Al Khail Road and Sheikh Mohammed Bin Zayed Road in one direction, and with Emirates Road in the other. It will also link to a new road to Dubai Academic City. Meanwhile, Jumeirah Golf Estate’s first retail centre – a smaller development containing a new grocery store, restaurant and cafe, will open in the Wildflower community in September next year. The centre is being developed by DAR Properties and will be built by City Diamond Contracting. It will be operated by Maybury, which runs existing stores in Dubai Marina and Abu Dhabi. When asked about future development of the community, including future phases containing more courses, Mr Kazim said its immediate obligation was to build out phase A, and that there would be pressure on it to deliver as a result of its proximity to the Expo 2020 site in the Dubai South district. “It’s not a small piece of land – it’s 370 acres,” he said.

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The latest report by property consultancy Asteco for Cityscape shows that prices for villas have dropped by 10 per cent since the end of the second quarter. This is part of a Dubai-wide trend in which demand has shifted away from bigger, high-end villas to smaller, more affordable properties. Source: The National Back to Index

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With 30 years of Middle East experience, Our professional advisory services are conducted Asteco’s Valuation & Advisory Services by suitably qualified personnel all of whom have had extensive real estate experience within the team brings together a group of the Gulf’s Middle East and internationally. leading real estate experts. Our valuations are carried out in accordance with Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai, Northern Emirates, Qatar, Jordan and the the Royal Institution of Chartered Surveyors (RICS) and International Valuation Standards Kingdom of Saudi Arabia not only provides a deep understanding of the local markets but also enables (IVS) and are undertaken by appropriately us to undertake large instructions where we can qualified valuers with extensive local experience. quickly apply resources to meet clients requirements. The Professional Services Asteco conducts Our breadth of experience across all the main throughout the region include: property sectors is underpinned by our sales, leasing and investment teams transacting in the market and a wealth of research that supports our decision • Consultancy and Advisory Services making. • Market Research John Allen BSc MRICS • Valuation Services Director, Valuation & Advisory

+971 4 403 7777 SALES [email protected] Asteco has established a large regional property

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