News Brief 45

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

NEWS BRIEF 45

SU NDAY 20 NOVEMBER 2016

RESEARCH DEPARTMENT

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

REAL ESTATE NEWS UAE

MIDDLE EAST PAY DELAYS HIT HILL INTERNATIONAL, SAYS CHIEF, AS IT SLIDES TO LOSS DUBAI MORTGAGE ON GRANTED LAND A WIN-WIN FOR DUBAI REALTY NEW DUBAI SOUTH CLUSTER POSTS BRISK SALES DUBAI'S AFFORDABLE LOCATIONS SEE RENT SPIKES BUILDERS URGED TO BROADEN FINANCING DUBAI EXPATS GROUP SHOWS THE WAY TO MANAGING A PROPERTY PORTFOLIO SHAPOORJI PALLONJI SET FOR EXPANSION OUTSIDE INDIA IN DUBAI DUBAI TOWN SQUARE LAUNCHES NEW TOWNHOUSE COMMUNITY NOOR DUBAI LAND DEPARTMENT MAKES IT OFFICIAL WITH NEW AWARDS ABU DHABI ATKINS MIDDLE EAST REPORTS LOWER REVENUE AND LIQUIDITY PRESSURE ABU DHABI OFFICE RENTS DIP IN THIRD QUARTER, LOWEST IN EIGHT YEARS

ALDAR AWARDS DH30M EARLY WORKS CONTRACT FOR MAYAN

GROWING PRESSURE ON ABU DHABI LANDLORDS TO LOWER RENTS NORTHERN EMIRATES SHUROOQ BREAKS GROUND FOR DH45M AL BADAYER DESERT CAMP DEVELOPMENT IN SHARJAH INTERNATIONAL ALEXANDER MCQUEEN’S MAYFAIR PENTHOUSE REFURBISHED AS A HOMAGE IS ON SALE FOR DH38.8M LONDON’S TOP BOROUGHS SEE PRICES PLUMMET MOST IN FIVE YEARS

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DUBAI TOWN SQUARE LAUNCHES NEW TOWNHOUSE COMMUNITY NOOR

Thursday, 17 November, 2016

Offering another opportunity for middle income professionals to shift from rental homes to ‘live at your price’ owned homes, Town Square has unveiled a new community of townhouses in a cosy green neighbourhood at a very attractive price range for the wide array of amenities and exceptional location in the heart of a trendy, integrated community.

Following the success of its residential launches, with the first homes scheduled to be handed over in 2017, Town Square, an integrated master-planned development by Nshama, is now launching Noor Townhouses – assuring a one-of-a-kind value proposition. Noor Townhouses come in a choice of three- and four-bedrooms, making it a first choice for families.

These townhouses are set in three neighbourhoods, assuring a more intimate community-feel.

Each neighbourhood has a distinct elevation and its own community club that has a swimming pool, children’s pool, modern gymnasium, changing areas, showers, common area, kids’ playground and tennis courts.

There will be a central community centre too with community-oriented activities.

Most townhouses also offer pedestrian access to the community clubs and community centre. With 24-hour security and two access points, Noor Townhouse neighbourhoods stand nestled within green boundaries and spectacular landscaping assuring residents complete privacy in a tranquil environment.

Located near the entrance of Town Square, near Al Barsha, in easy proximity to popular malls as well as the Al Maktoum International Airport, which is less than 20 minutes away, Noor Townhouses promise a ‘town square’ lifestyle, with effortless access to a wide range of amenities such as parks with water features, jogging, state-of- the-art fitness facilities, swimming pools, outdoor gymnasiums, skateboard parks and children’s play areas.

They are also in walking distance of the popular Al Qudra cycle track.

Fred Durie, Chief Executive Officer of Nshama, said: “The launch of Noor Townhouses follows the overwhelming demand for our residential offerings, especially from families, with all our earlier launches reporting strong response from those who aspire to have an own home at affordable prices in the heart of a vibrant community. We have redefined the industry standards with our focus on thoughtfully designed homes that are set in elegant neighbourhoods with all amenities in close proximity. Noor Townhouses will appeal particularly to those who cherish living in a green environment with a host of outdoor lifestyle pursuits.”

Noor Townhouses are located in walking distance from the heart of Town Square - a central square, the size of 16 football fields.

It features Vida Townsquare Dubai hotel and a Reel Cinemas cineplex in addition to a 2.5 million sqft retail precinct featuring over 600 stores and F&B outlets, among others.

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Thoughtfully designed by taking into consideration the daily needs of residents, Noor Townhouses open to green vistas with all homes featuring large balconies.

The 3-bedrooms range in size from 200 to 208 sq m, with prices starting at AED 1,188,888.

All homes have a private rear garden, room for domestic help, open bistro kitchen layout, storage utility areas and covered garage for two cars.

In-built cupboards, high quality fixtures and finishes are standard across all homes, which also have high-speed fibre-optic data connectivity.

The spacious master-bedroom has en-suite bathroom and patio doors opening onto a private balcony or terrace.

Soothing, hygienic and naturally-cool ceramic tile floors bring welcome relief at the floor level. Bathrooms are equipped with water-conserving mechanisms while noise-isolating windows let in abundant natural light.

Sale of Noor Townhouses commence on Saturday 19 November, 8am, first-come, first-served, at the Nshama Sales Centre on Mohammed Bin Rashid Boulevard in Downtown Dubai.

For more details, visit www.nshama.ae or call: 800 674262 (toll free UAE) or +971 4607 8990 (international).

The Nshama Sales Centre has representatives of financial institutions for easy document processing.

The Centre is open daily from 10am to 8pm from Saturday to Thursday, and from 2pm to 7pm on Friday. Source: Emirates 24/7 Back to Index

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ALDAR AWARDS DH30M EARLY WORKS CONTRACT FOR MAYAN

Monday, 14 November, 2016

Aldar Properties PJSC (‘Aldar’), Abu Dhabi's leading listed property development, investment and Management Company, has awarded the early works contract for the first phase of Mayan, a luxury residential development located on Yas Island, to Dutch Foundation & Concrete Rehabilitation Company WLL.

The Dh30 million contract provides for shoring, piling and earthworks for Mayan’s 512 luxury apartments which are spread across five buildings.

The Abu Dhabi-based full-service engineering foundation company, Dutch Foundation & Concrete Rehabilitation Company WLL, has been appointed to carry out the work over a five month period with commencement effective immediately.

Talal Al Dhiyebi, Chief Development Officer at Aldar, commented: "The enthusiasm for Mayan since its launch last year has been extremely encouraging. We have witnessed strong demand for luxury residences in prime locations, and Mayan caters to this demand with high quality homes in Abu Dhabi’s most exciting destination, Yas Island which is home to a number of world class amenities and attractions."

Situated on Yas Island, Mayan offers studios, one, two, three and four-bedroom apartments, as well as a select number of golf course homes and beach-front villas. Source: Emirates 24/7 Back to Index

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SHUROOQ BREAKS GROUND FOR DH45M AL BADAYER DESERT CAMP DEVELOPMENT

IN SHARJAH

Tuesday, 15 November, 2016

The Sharjah Investment and development Authority (Shurooq) has commenced the implementation of Al Badayer Desert Camp project, valued at Dh45 million, which is expected to become one of its premium leisure and adventure destinations in Sharjah.

The project will feature a unique set of experiences for desert adventurers within the golden dunes of Sharjah’s middle region. Moreover, the project aligns with Shurooq’s comprehensive strategy to develop a variety of Sharjah’s vast oases and northern regions.

Shurooq’s 24,000 m2 Al Badayer Desert Camp project includes an array of amenities and facilities that meet the needs of the most discerning of visitors, including its urban resort, desert lodge, restaurant and cafes.

A main feature is its amphitheatre which will host live activities and multiple entertainment events under the stars.

Additional facilities also include a mosque, recreational tents, shops, kiosks, turrets and shaded parking areas for cars and buses.

The project is a 40-minute-drive away from the city of Sharjah and once completed will give visitors the opportunity to explore the wilderness and take exciting and challenging desert activities.

"Since its inception in 2009, Shurooq has implemented an array of leisure and tourist projects across all regions of Sharjah. The positive commercial effect of these projects has added value to the emirate’s economy and contributed directly to the success of its economic diversification plan. Shurooq has been the major driving force behind this transformation, and through Al Badayer Desert Camp project we are pleased to begin the development of this project and to bring this diversification to life" said Marwan bin Jassim Al Sarkal, CEO of Shurooq.

"Al Badayer Desert Camp project is one of Shurooq’s foremost desert and leisure tourism projects in the UAE. Its importance stems from the fact that it is located within one of Sharjah’s and UAE’s most popular locations, where Al Badayer is renowned for being a premium destination for desert adventurers, 4x4 enthusiasts and multiple safari tour providers," he added.

"The implementation of the various phases of the Al Badayer Desert Camp project is underway and we anticipate that it will become a favourite destination for UAE residents and tourists alike through its array of services, features and entertainment offerings. We also expect that its name will become a byword for exhilarating desert exploration and adventures," Al Sarkal explained.

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Source: Emirates 24/7

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MIDDLE EAST PAY DELAYS HIT HILL INTERNATIONAL, SAYS CHIEF, AS IT SLIDES

TO LOSS

Tuesday, 15 November, 2016

The project management firm Hill International has declared a net loss of US$6.9 million in the third quarter of 2016, citing lower revenues and payment delays from its Middle East operations.

The US-based project management company said consulting fee revenues for the quarter dropped by 19.3 per cent, or $11.4m, in the Middle East.

The company, which earned almost half of its total 2015 consulting fee revenues of $631m from the Middle East, said it faced one-off expenses of $10.6m during the third quarter this year. Some $8m of this was bad debt expense because of money owed from clients, whom it said "primarily" came from the Middle East. The remaining $2.6m were costs incurred in contesting a proxy challenge from the activist firm Bulldog Investors, which resulted in the company’s founder and Chairman Irvin Richter stepping down from Hill’s board in September.

Total revenue for the quarter was $168m, 6.1 per cent lower than the same period last year. Revenue for the first nine months of 2016 is 2.1 per cent lower at $519.8m and it has swung to a net loss of $3.9m, compared with a profit of $8m for the same period in 2015.

Hill International said, based on its performance during the period, it has revised its earnings and revenues targets for the full year. It expects consulting fees to be between $600m and $610m, or about 3 to 5 per cent lower than last year.

"We saw challenges in the third quarter in our Middle East project management operation, with respect to both sales of new work and cash flow on existing work, as low oil prices have continued to have a major impact on construction activity there," said David Richter, the son of the founder and the chief executive of Hill International.

"However, we see strong performance continuing for both the US project management operation and the construction claims operation globally and we expect to return to revenue growth company-wide in 2017 as oil prices recover."

Hill International is currently working on a number of major infrastructure developments in the region. It is undertaking project management roles at the expansion of Muscat International Airport, the new Riyadh Metro and the Doha Metro.

Many firms in the construction industry have suffered financially as a result of delayed payments in the Middle East – most notably in Saudi Arabia, where the government halted payments to many companies in the sector in late 2015 in response to tightening budgets owing to lower oil prices. However, last week, the government’s economic body, the council of economic and development affairs said it would begin making delayed payments to the private sector by mid-December.

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Source: The National

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LONDON’S TOP BOROUGHS SEE PRICES

PLUMMET MOST IN FIVE YEARS

Wednesday, 16 November, 2016

Land values in central London’s best districts fell 10.3 per cent in the year through September, the biggest fall in at least five years, as higher taxes and the Brexit vote cause luxury home prices to fall.

Banks are less willing to lend for site acquisitions and construction, fuelling the decline in values, the broker Knight Frank said in a report on Wednesday. Developers also need to raise their profit margins as a buffer against any further falls in home prices, the broker said.

"With the current level of political uncertainty, increased risk has been placed on house builders, causing them to look for greater margins," said Justin Gaze, the joint head of residential development at Knight Frank. Outside of central London "demand for new homes is strong".

The number of unsold central-London homes under construction will reach a record high this year, increasing the risk that developers’ bets on rising demand for luxury properties will go sour. Shares of property developers with large projects in the UK capital’s best districts have lagged competitors since the referendum after they began to write down the value of their holdings on falling sales prices.

Capital & Counties Properties wrote down the value of its land holdings in the Earls Court district by 14 per cent in July and they may fall a further 10 per cent this year, said Peel Hunt analysts including James Carswell. St Modwen Properties said the value of its stake in a project in the Nine Elms district fell by 17 per cent after home-value forecasts fell by almost 4 per cent.

Ireland’s National Asset Management Agency has appointed receivers to a company that owns a luxury-home project in London’s St John’s Wood district after the development stalled under its current management. The project was previously offered for sale through Jones Lang LaSalle and the receivers are now considering a new strategy to dispose of the site.

Land values in London’s best districts such as Westminster and Knightsbridge began to surge from 2012 as developers from China to Malaysia bet that the market for luxury homes would remain strong. Instead, increases in taxes and rising values dampened demand, and home prices there are now almost 11 per cent below their 2014 peak, according to broker Savills.

Home prices in the capital may decline as much as 30 per cent as the UK economy weakens following the vote to leave the European Union and companies move staff overseas, said Société Générale analysts including Marc Mozzi. The number of homes under construction in London’s best districts will hit almost 11,000 this year, according to data compiled by Molior London. Source: The National Back to Index

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ABU DHABI OFFICE RENTS DIP IN THIRD

QUARTER, LOWEST IN EIGHT YEARS

Wednesday, 16 November, 2016

Office rents in Abu Dhabi have fallen to their lowest point in more than eight years as low global oil prices continue to slow the capital’s economy.

According to property broker Asteco, average office rents in prime office buildings in the capital slumped by 4 per cent in the three months to the end of September to Dh1,600 per square metre as companies in the capital continued to feel the pinch from an economic slowdown caused by two years of declining oil prices.

Unlike housing rents in Abu Dhabi, office rents remained fairly static in the years following the global financial crisis as a glut of new space hit the market in areas such as Abu Dhabi Global Market Square on Al Maryah Island and around Abu Dhabi National Exhibition Centre.

The slump in prime office rents – often seen as a bellwether of a city’s economy – follows a similar dip in rents the previous quarter, brokers say, wiping out any rent increases made by landlords since the end of the global financial crisis.

Asteco said that office rents in the capital are now 72 per cent lower than they had been at their market peak in late 2008.

"Low oil prices leading to government budget reductions and job cuts have negatively affected overall market sentiment. Office rental rates were under pressure this quarter with indications that tenants are either downsizing or moving to more affordable premises," said John Stevens, Asteco’s managing dir¬ector. "The reduced demand led to an increase in vacancy rates, which will put further downward pressure on rental rates going forward."

Housing rents in the capital also continued to decline, Asteco said, as landlords bore the brunt of job cuts in the oil and gas and construction industries with areas often popular with oil executives experiencing the largest falls.

Average apartment rents on the Corniche were down by 9 per cent compared with a year ago and fell by 3 per cent over the quarter, Asteco said. High-end apartments in Khalidiya were down by 8 per cent over the year and fell by 1 per cent during the quarter.

Villa rents were down, on average, by 2 per cent from the previous quarter. The highest drop was in Al Raha Gardens (6 per cent) followed by Al Raha Beach Villas (4 per cent).

Asteco said that rents in Abu Dhabi were now falling faster than those in Dubai, bringing the city’s rents more into line with those of Dubai.

At the start of this year, the difference in annual rent for one and two-bedroom apartments between the two emirates was typically Dh20,000 per annum. By the end of September this had narrowed to about Dh10,000 as average rents in Abu Dhabi fell by about Dh5,000 a year and those in Dubai were down by Dh1,000.

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"The majority of vacant apartments, which were offered at reduced rates in Q2, have now been leased, especially the smaller unit types – studio, one and two-bedroom," Mr. Stevens said. "This indicates that there is demand in the market, but value for money is the most important factor. In comparison, rental rates for larger and more expensive three and four-bedroom duplexes and town houses have fallen by 10 per cent since the last quarter, with a high percentage remaining vacant for over six months." Source: The National Back to Index

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ATKINS MIDDLE EAST REPORTS LOWER

REVENUE AND LIQUIDITY PRESSURE

Thursday, 17 November, 2016

The building consultancy Atkins has reported a decline in ¬revenue in its Middle East business in the six months to September 30, and tightening liquidity as clients continue to delay payments.

The UK-based company’s Middle East unit reported a 12 per cent year-on-year decline in revenue to £104.9 million (Dh481.2m), although on a constant currency basis it fell by 22 per cent, the company said today. Operating profit also declined by 41 per cent to £6.6m.

In a statement to the London Stock Exchange, the company said that it had "seen no improvement in the liquidity situation … as clients continue to extend payment terms, resulting in increased debt provisioning".

"Cash collection remains a key focus across the region," it said.

At the end of September, the average number of employees working for Atkins in the Middle East dropped by 5.4 per cent to 2,420, compared with 2,557 in the year-earlier period. Employee numbers have dropped by 1.6 per cent since March, the company said, reflecting "more challenging conditions in the transportation and infrastructure markets in particular".

Atkins is working on the Doha Metro project, where it is project manager for construction of the Gold Line – one of four new lines being built under the first phase, which is due to complete in 2020.

In Saudi Arabia, it is project manager for three of the six lines being built for the Riyadh Metro, overseeing the Spanish-led FAST consortium building lines 4, 5 and 6. It is also advising the Economic Cities Authority in the kingdom on the development of four new cities.

The company was more upbeat on the property sector, especially in the UAE, where it delivered the Dubai Opera House for Emaar Properties. Its Faithful + Gould cost and programme management division is also managing the Dubai Creek Harbour project for Emaar, but has faced payment delays in Saudi Arabia and in Qatar.

Atkins said the "sustained low oil price and consequent changes to spending priorities are increasing uncertainty in the region". However, at group level, it achieved strong revenue and profit growth in North America, and higher profits in the UK and Europe. Group revenue was 10 per cent higher at £994.7m and underlying net profit was 11 per cent higher at £47.7m, although when impairments and other one-off costs were added its reported net profit dropped by 58 per cent to £22.4m.

"Despite challenges in some markets, we have delivered good underlying profitability and the near-term outlook in our UK and North American businesses is particularly positive," Uwe Krueger, the chief executive of Atkins said.

Earlier this week, US project management consultancy Hill International also reported a worsening financial performance in the three months to September, which it blamed on an increase in bad debts from Middle East clients. The Dubai-based contractor Drake & Scull also said it is planning a "real transformation" of its business, which could include retrenching its ambition of being a civil works contractor and "taking a more conservative stance" over the recoverability of outstanding debts.

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Speaking at a British Business Group event in Dubai this week, Ben Hughes, a director at Deloitte’s Capital Projects division, said: "A lot of our focus at the moment is around distress. There’s a lot of distress in the market

– both in terms of liquidity and balance-sheet positions for contractors, real estate companies and the whole supply chain." Source: The National Back to Index

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SHAPOORJI PALLONJI SET FOR EXPANSION

OUTSIDE INDIA IN DUBAI

Thursday, 17 November, 2016

Shapoorji Pallonji Real Estate is planning to develop about 5 million square feet of property in Dubai as part of its first wave of expansion outside of India.

The Mumbai-based company has begun piling works on the US$350 million, 45-storey Imperial Avenue residential tower in Business Bay but the development director, Jacob Joby, said that it is in talks with master developers with a view to creating joint ventures to build more schemes.

"We are looking at a target of at least 5 million sqft. We can showcase at least five-to-six towers. That gives us the portfolio to take it across the rest of the region," he said.

Mr. Joby said that the company has already held negotiations with three major developers of master planned communities in Dubai with a view to forming joint ventures.

"At an appropriate time there will be an announcement of a strategic relationship. We are evaluating the best opportunities," he said.

He said that it will probably work with more than one developer and seek sites in prime locations. "This [Business Bay] is a strategic location that Dubai has created. The Palm is another one. The Dubai Canal could be interesting for us," he said.

The company unveiled Imperial Avenue as its first project outside India at the Cityscape Global event in September. Sales of the 424 apartment units began last month, starting from Dh1.47m for a one-bedroom apartment to Dh11.5m for a five-bedroom penthouse. There are also six "podium-villas" at the top of the building, a 26th-floor podium level with a rooftop infinity pool and sixth- and ninth-floor podium levels with a community pool and children’s play areas. The building also contains a private cinema, and five floors of parking.

Mr. Joby said that the development has been aimed at owner-occupiers, with floorplates that are typically 20 per cent bigger than average and sustainability measures such as grey water usage and solar water heating intended to drive down service charges.

The company is the property development arm of a much larger, construction-focused conglomerate, which has had a presence in the Middle East since 1971. Its first job was in Oman building a palace for Sultan Qaboos but it has worked in Dubai since 1974 and built structures such as Damac’s Park Towers in DIFC and the new Landmark Group headquarters in Dubai Marina. It is also building tower projects in Riyadh and Dammam.

Richard Paul, the head of residential valuations at Cluttons in Dubai, urged a note of caution that "certain types of accommodation" would outperform others. "It’s difficult to put the whole residential in one sentence and say ‘it’s coming back’. Then everyone assumes the whole market is coming back," he said. Source: The National Back to Index

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ALEXANDER MCQUEEN’S MAYFAIR PENTHOUSE REFURBISHED AS A HOMAGE

IS ON SALE FOR DH38.8M

Thursday, 17 November, 2016

For a two-bedroom, 1,790 square feet penthouse apartment to have an asking price of £8.5 million (Dh38.8m), it has to offer something special – even in Mayfair in West London, where property prices are among the most expensive in the world.

This duplex penthouse at 17 Dunraven Street does have something quite special about it. Not only has it been home to British royalty but also revered British novelist and humorist P G Wodehouse, it was last owned by British fashion designer Lee Alexander McQueen, who had begun an extensive refurbishment while renting another home nearby. The renovation works had not finished by the time the designer died in 2010. However, interior design specialist Paul Davies London has completed the restoration, with its designs paying homage to the McQueen creations.

The decor includes portraits of the designer as well as photos of his muse Isabella Blow. There is also a "fashion catwalk" area and nods to McQueen’s famous skull motif reflected within certain fittings such as lamps and lampshades.

The lower floor contains the reception and entertaining spaces, including an American-style bespoke kitchen designed by Clive Christian with a central island, breakfast bar and a 10-seat dining area. French doors open on to an outside terrace area. The reception room has a 3.2 metre-high ceiling. It is fitted with a new AV system and has a large, open fireplace. A hallway linking the kitchen and reception areas has been created as a fashion catwalk with mirror-lined walls-to-floor cabinets.

The upper floor contains a master bedroom with built-in wardrobes, an en suite bathroom, a dressing area and a day area. There is also a second bedroom with a dressing room and a day area, which could be converted into a third bedroom if required. There is a family bathroom, and the landing has a chrome spiral stair casing, which leads up to a 2,400 sqft roof garden with a barbecue and a bar area with views of West London.

Q&A

Who was Alexander McQueen?

He was a fashion designer from London who grew up in a working-class background and left school at 16 to work in the city’s famous Savile Row. He created his own label alongside working at Givenchy, where he became chief designer in 1996. He eventually joined Gucci Group in 2000 and sold a majority stake of his label to the firm for a reported US$30 million. He won four British designer of the year awards.

Can you describe the style of the refurbishment?

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It’s been billed as one that "fuses the Art Deco and contemporary", inspired by McQueen to deliver a more modern style of Mayfair apartment. Floors in the main rooms are made from black American walnut wood, the joinery is bespoke and McQueen’s signature colours of cream, silver and black have been used.

Any idea who might buy it?

We believe that the Alexander McQueen penthouse will sell to a buyer from either the Middle East or Asia. 17 Dunraven Street in North West Mayfair is in the heart of the Middle East Quarter of the district.

Anything else of note?

The apartment and a separate property below were a town house occupied by the author P G Wodehouse. The house was originally the home of Queen Victoria’s grandson, the Marquess of Carisbrooke. Source: The National Back to Index

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DUBAI EXPATS GROUP SHOWS THE WAY TO MANAGING A PROPERTY PORTFOLIO

Friday, 18 November, 2016

Chris Battle loves talking about property. But he knows he has taken it too far when his wife stops listening.

"She sort of glazes over," says Mr Battle, 46, from England.

The couple do, however, have a lot to talk about when it comes to real estate. They own seven investment properties and a family home, having first become landlords eight years ago after deciding to rent out their home rather than sell when they moved to Dubai from London.

They enjoyed receiving the rent money so much they bought another in the United Kingdom in 2011, two more in the United States a couple of years ago and more UK purchases since then. Their portfolio is now worth about £1.38 million and they have more purchases planned.

While his wife many not want to discuss their portfolio, Mr Battle’s expertise as a buy-to-let landlord is not going to waste. He has set up a meetup group for property investors like himself. Called the The Property Hub Meetup, (http://bit.ly/2fYur7B) the group was inspired by a UK podcast called the thepropertyhub.net, which gives investors hints and tips.

"I contacted them to see if there was one in Dubai and they said no, would you like to start one? So about a year ago I put the group together," says Mr Battle.

Members meet on a monthly basis in Dubai to discuss relevant topics, goals and the progress of their property investments. Last time around 14 people attended, most of whom have investment properties in the UK.

And there could never be a better time to discuss investing into the UK.

Victoria Garrett, a partner at Knight Frank Middle East, which is currently marketing a development in Staines upon Thames to UAE residents, says the UK market has cooled post-Brexit.

In London, for example, prime central prices are expected to end the year down 9 per cent, according to Savills.

"On everyone’s lips at the moment is currency. It is an all-time low, so in terms of making your money work harder for you, converting your money back now is the perfect time to do it," adds Ms Garrett.

Investing back home is certainly key for group member Darren Cairns, 32, from Scotland. He now has five apartments in the UK worth about £1.12m (Dh5.1m), having bought his first in London, a two-bedroom flat for £385,000, before moving out in 2013. He then bought a one-bedroom flat in Edinburgh for £120,000 last year; a two-bedroom flat in New Crofton for £80,000, again last year; a two-bedroom in Manchester for £200,000 this year and another in Liverpool this year for £82,000.

His strategy is simple, to create a base of assets – property – most of which he has bought using interest-only, buy-to-let mortgages which he rents out to generate cash which he will use to invest in other things. And it has already started paying off. His London pad is now worth £600,000.

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"It’s in Islington and that area has gone up in value quite a lot since then. It was a new build and came with a small garden," says Mr Cairns, a management consultant.

And he is not the only group member to have cashed in on the growth of the capital’s property market.

Jonathan, 41, a journalist from England who asked for his name to be changed, has five properties worth about £1.37m, the first of which, a two-bedroom apartment he bought in Dundee in 2005 for about £70,000. He bought his second investment property, a three-bedroom terrace in London, three years ago for £380,000; then a three- bedroom home in Nottinghamshire two years ago for £121,000; a two-bedroom apartment in Melbourne in Australia two years ago for A$405,000 (Dh1.23m); and he also has a large Victorian house in Nottingham, which he bought for £175,000 and has subsequently converted into a house of multiple occupancy. The price of that house, which he expects to achieve yield of around 10 per cent, has risen in value by at least £100,000 since he renovated it. And he has also seen the value of his London property rise substantially.

"That has gone up a lot in value, over £200,000, in about three years. Actually it could be more than that," says Jonathan. He also intends to refinance it to buy more properties next year. And it could be a good time to do so, according to Mr Battle.

"There is a theory they go into on the property podcast on the 18-year property cycle. There will be a crash every 18 years. The idea is that for the first three or four years after the crash nothing will happen, then there will be slow growth up to about year nine, which is probably going to be next year [in this cycle]," says Mr Battle.

"Then there will be a recession or a blip for maybe a year. Then there is going to be rapid growth for seven years. Then after that, the last couple of years is called buyer beware. That’s when people buy at the top of the market and then there is a crash coming in a year or two’s time."

Group member Joanne Alford, 43, from Wales, knows all about the problems caused by market crashes. She has three properties, all of which are within about 16 kilometres of the Welsh capital, Cardiff.

She bought the first property, a three-bedroom house in Llantrisant near Cardiff, the village she grew up in, in 2002. The second property, a three-bedroom house in Llanharan, near Cardiff, followed in 2006 and then she built another three-bedroom house in the garden of that one the following year. She also owns a three-bedroom house in Jersey which she bought in 2013.

"We thought what we would do was flip that new property, which was all self-financed, sell it for cash then we would invest in other property. But then we had the market crash," says Ms Alford, whose portfolio is worth £840,000.

She has since tried to sell each of the three properties at least once to no avail and has also had problems finding tenants, particularly with an older property, eventually renting that home for discount to ensure it was occupied.

Jonathan has also struggled to find a tenant for his Dundee apartment at times and his house of multiple occupancy has been slower to rent than he would like.

"There are lessons in that as well. There are a lot of things you can do to make it desirable," he says.

But one more thing to consider about voids, the periods where properties are empty, is that they are actually easier to withstand if you have a larger portfolio, says Mr Battle.

"Say you have half a dozen properties. If one of them is empty, you still have enough from the others to pay the mortgage. It might take a couple of months before you have any real worries. But if you have one property, and that is empty, that mortgage has to be paid from somewhere. So developing a portfolio is actually less risky than just having one, for that reason. It is a safety valve for yourself," he says.

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The same goes for maintenance, says Mr Cairns. If you have one apartment and your boiler goes, that can wipe out any earnings from rent for a long time.

"But it is very unlikely if you have 10 properties, that all 10 boilers will blow up in one month. It kind of de-risks things a bit. It’s more like a business. And it is a business," he says.

But as with any business, external factors can also play a big part.

The UK reviewed its tax regulations on property in recent years. Until 2015, UK expats who had lived outside the UK for at least five whole tax years were not liable to pay capital gains tax (CGT) on the sale of their properties. That has now changed, but any gain is calculated from April 5, 2015. A CGT allowance of £11,100 per person is still available though, says Mr Battle.

"This means that a couple that jointly owns a property will have an allowance of £22,200," he says, adding that stamp duty rules have also changed with anyone buying a second property in the UK since April 2016 liable for an additional 3 per cent stamp duty charge.

And while mortgage interest payments were previously deductible before income tax at the highest tax rate payable, Mr Battle says a new system is being phased in by 2020 so that a tax allowance of no more than 20 per cent is deducted when calculating taxable profit.

Plus economic uncertainty still exists.

In late October Anthony Browne, the chief executive of the British Bankers’ Association, warned that banks are planning to quit the capital early next year following the Brexit vote. The effect that will have on London’s property market is not yet clear. But Aberdeen, Europe’s oil capital, is proof of how a declining industry can hit a property market.

In the Scottish city, prices grew 88 per cent in a decade, from £116,656 in 2005 to £219,177 in 2015, outpacing even London, according to Bank of Scotland. Growth seemed unstoppable until the oil price slump began hitting producers based in the North Sea. From April 2015 to April 2016, prices in Aberdeen dropped almost 20 per cent, according to figures from Your Move.

The effect could be the same in London if the banks leave.

However, Mr Battle remains optimistic.

"Britain is still in the G7. It is a big economy. It might not be banking. It might be a different industry," he says. "But we will still be OK."

Chris Battle’s property portfolio (£):

One-bedroom flat in Hornsey, North London: £222,000

Current value: similar advertised on Zoopla.co.uk for £400,000

Monthly rental income: £1,300

One-bedroom apartment in South Carolina, US: £63,349

Current value: not known

Monthly rental income: £462

One-bedroom apartment in Florida: £69,772

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Current value: not known

Monthly income: £483

One-bedroom flat in Woolwich, South East London: £270,000

Current value: approximate on Zoopla.co.uk at £325,000

Monthly rental income: £1,150

One-bedroom flat in Romford, Essex, UK: £250,000

Current value: no change

Monthly rental income: £1,170

Two-bedroom flat in Norwich, UK: £157,500

Current value: no change

Monthly rental income: £695

Two-bedroom flat in Ipswich, UK: £115,000

Current value: Expected to exchange this week

Monthly rental income: expected £650

Total value: £1.38 million (Dh6.29m)

Financing a UK portfolio

According to Chris Battle, founder of the Property Hub Meetup group, taking out mortgages to buy in the UK typically require a larger deposit, which can be as high as 35 per cent. It is possible to get a mortgage for 75 per cent but you tend to have to pay a higher interest rate, he says. Applicants have to provide numerous documents including proof of address and income, three months’ bank statements and mortgage statements for the past 12 months, if the applicant already has a mortgage, plus proof that they can pay the deposit.

Options to buy in the UK for UAE residents include:

• Going direct to a UK lender, such as Skipton, which offers expat mortgages. The highest demand for expat mortgages with Skipton has come from expats in the UAE, with almost a quarter of all applications coming from here since the lender first introduced the product in 2014. Al Rayan Bank is another option. It is UK-based, Sharia- compliant and offers expat mortgages to UAE residents.

• Using a broker. There are some local branches of international brokers based here. Or alternatively contact a UK-based broker which specialises in expat mortgages like liquidexpatmortgages.com.

• Buying in cash. This is the best, but the most expensive option in the short term for non-UK residents. Cash buyers represented about two-fifths of all home sales in England and Wales, or 420,000 transactions, in the year to the end of March 2015, according to Hamptons International.

Going direct to a UAE lender: a number of UAE banks, including ADCB, offer UK mortgages. But they may not offer mortgages for properties everywhere in the UK. ADCB, for example, does not provide finance for properties in Scotland or Northern Ireland.

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Source: The National

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BUILDERS URGED TO BROADEN FINANCING

Saturday, 19 November, 2016

Companies in the construction sector that can bring finance sources such as export credits to tender bids could enjoy a brighter year in 2017, but those heavily exposed to Saudi Arabia and Qatar are likely to face continued constraints, according to a panel of experts.

Speaking at a British Business Group event in Dubai last week, Thomas Riordan, Arabtec professor of civil engineering at Higher Colleges of Technology in Dubai, who has spent a year advising the UK’s department for international trade, said: "The key trend at the moment is alternative revenue sources.

"A lot of developers, a lot of government entities are told: ‘we don’t have money from oil – please go out and get alternative revenue sources for these projects … We want your contractors and developers to be more proactive.’"

He said that the UK Export Fin¬ance initiative, which provides funding for projects in which there is a significant British involvement, is a powerful tool in helping them to secure projects.

"That is a game changer," said Mr Riordan. "UK Export Finance has something like US$2 billion on the table at the airport and $1bn at the Expo 2020. That will be an opportunity for a lot of people to win key contracts on those projects."

He also said that Britain was not the only country whose government was offering export credits to enable its contractors to secure work.

"You’ve got the Chinese getting more involved in that, you’ve got the Italians and the French coming here and talking about financing projects."

Public Private Partnerships (PPPs) were discussed as another potential way of contractors securing work – especially in Dubai, which passed its PPP law in November last year. Ben Hughes, a director of Deloitte’s Capital Projects team in Dubai, said that although "there hasn’t been the avalanche of PPPs that one might naively have expected", this is likely to change next year with Expo 2020 presenting a pressing deadline.

"I think 2017 is probably the time when PPP really kick-starts in Dubai and really takes off."

Outside the UAE, contractors are still facing acute cash flow pressures in Qatar and Saudi Arabia, where capital spending programmes have been scaled back and, in the latter, payments from government clients have been on hold.

"In Saudi Arabia, we’ve advised clients where they are simply not being paid by the government," said Mr Hughes. "If the government is unable to pay and the contractor is still obligated to maintain the supply chain they’ve got, then they are in a fairly invidious position where no money is coming in and it’s all flowing out."

Jed Savager, a partner at law firm Pinsent Masons, said that relationships between main contractors and their suppliers are becoming more adversarial as the amount of money in the supply chain dries up.

"If you look at the last 12 to 18 months, there has undoubtedly been a huge upswing in disputes, many of which are entrenched. The supply chain is distressed."

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A report published last week by BMI Research, part of the Fitch group, said that the downturn in Saudi Arabia’s construction market is likely to continue throughout next year.

The report said that Saudi Arabia’s construction sector had shrunk in size by 1.9 per cent in the first quarter of this year, then by 3.1 per cent in the second quarter.

"While we believe the industry will have improved marginally over the second half of the year, the issues which have dogged 2016 will roll over into 2017," it said.

Although the government recently pledged to repay outstanding bills to contractors by the end of next month, the fact that it has withheld payments for more than a year has had a dramatic effect on staffing, the solvency of subcontractors and the backlogs of existing projects.

It has downgraded its growth forecast for Saudi Arabia’s construction sector to 0.5 per cent this year and 1.9 per cent next year, and predicted that growth above 5 per cent – commonplace in recent years – is not likely until 2019. Source: The National Back to Index

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DUBAI'S AFFORDABLE LOCATIONS SEE RENT SPIKES

Sunday, 20 November, 2016

Those Dubai residents scouting for rentals easy on their pockets should check out Jumeirah Village Circle or Sports City – but they shouldn’t wait on it for too long. Both residential clusters recorded slight rental increases - by 2 and 3 per cent respectively during the third quarter even as other locations in the city have remained stable or gone through declines.

“We are seeing a definite shift to more affordable areas such as Jumeirah Village and Dubai Sports City where rents are cheaper and an increasing number of amenities are coming on-line as communities reach critical mass,” said John Stevens, Managing Director of Asteco.

In contrast, upscale Downtown was one location to see a rent decline – by 5 per cent – during the 12 months to Q3-16, while outside of freehold, the villas in Jumeirah and Umm Suqiem were impacted with year-on-year drops of 19 and 12 per cent, respectively. The posh neighbourhoods were undone by a mix of new supply coming up and higher incidence of job-related uncertainties among its former residents.

“Given that tenants have a wide range of options to choose from, they are more likely to negotiate with their landlord; and if their requirements are not met, they will vacate,” said Stevens. “While this was noticeable in Jumeirah and Umm Suqeim, this trend has spread throughout the wider Dubai market.

“With more handovers expected in the next few months, we anticipate villa rental rates could come under further pressure.”

Another report on the Dubai residential market trends, this one by Cluttons, also confirms the rental stability taking root in the majority of prime residential neighbourhoods. “Apartment rents were unchanged in Q3 across all the submarkets we monitor, hinting perhaps that this segment of the market may be starting to flatten out,” the report adds.

“Following a sharp 4.4 per cent fall in average rents across the city’s freehold areas in Q2, which was the strongest decrease recorded in five years, the rate of decline moderated to -1.5 per cent in Q3. The latest change leaves average rents 8 per cent down on this time last year.”

In these circumstances, it would take a rush of new residential supply to make any sort of dent in rents across Dubai. Cluttons estimates that 34,000 new homes were announced across various projects this year. But total handovers this year from earlier announced projects would only number about 8,300 units.

“We now expect 2017 to see 12,212 units complete, with 20,915 completions in 2018, up from our earlier estimate of 20,600, due to recent announcements,” the report says. “As has been the case historically, while the number of project announcements is progressing at an uninterrupted pace, the delivery timelines of these new schemes remain unclear.

“Our experience has shown that larger developments are often phased, with handovers being stretched over a period of months, if not longer. With this in mind, we have limited our supply database to schemes where sales have commenced, ground has been broken, or the developer has announced development phases.”

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Two emerging locations would be Dubai Creek Harbour – where with The Tower (the next tallest skyscraper in the making) launch additional projects can be expected – and Dubai South, now confirmed in popular perceptions as the next big affordable location in the city.

According to Murray Strang, Head of Cluttons Dubai, “If supply continues to increase in the next 12 to 18 months, as the global economy remains unstable, it is likely to cause the current stability and projected bottoming out of the real estate market to unravel, with further price falls likely to follow suit.

“Demand and supply are almost in-sync currently, but this delicate balance can quickly be upset by a supply surge.” Source: Gulf News Back to Index

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NEW DUBAI SOUTH CLUSTER POSTS BRISK SALES

Saturday, 19 November, 2016

Even the Dubai South sequel is proving a hit — buyers queued up overnight on Friday to get a chance to snap up homes starting from Dh280,000 in the second release of units at The Pulse cluster within the master- development. And there were only a limited number of units that actually went on sale on Saturday morning at the event held at an upscale hotel in the city. The first release — of an estimated 300-plus units — happened last month and were sold out immediately.

The prices were Dh650-Dh800 on a per-square-foot basis. “There were no price mark-ups between the first and second releases and that’s working in the project’s favour,” according to market sources. “The demand for the second release is in keeping with what has gone before — both end-users and investors are getting interested in the Dubai South story.”

Some estate agents talked about tokens — being issued for a place in the queue — going for a sharp premium as buyers wanted to get their hands on a unit. However, this could not be independently confirmed by Dubai South officials. Whatever be the actuality, the scenes at the sales release were reminiscent of what used to be a regular feature in the 2005-2008 period and with some of the launches that took place during 2011-14.

The Pulse releases — the estimates suggest that Pulse accounts for 300 plus townhouses and more than 800 apartments overall — as well as that of Emaar South earlier confirm the coming of age of Dubai South as the go- to place for mid-market buyers in Dubai. The master-developer Dubai South will also be coming up with another cluster launch called The Village. Private developers such as MAG are lining up with their own versions.

The Dubai South successes will reinforce the impression that a substantial buyer base exists for mid-market properties priced sensibly and that they are willing to commit to a project that is still three years and more away from realising its full potential. The response comes even though there are many recently completed properties available elsewhere in the market.

“Pricing and the belief that it will set the quality marker for mid-tier developments is what’s sustaining the Dubai South momentum,” said an investor. “That’s why they are able to compete and win against ready properties.

“And because of the smaller ticket prices, many of them around Dh1 million or even well below, is accessible enough for buyers not to need mortgage support.”

There are also anecdotal reports of International City and Discovery Gardens investors divesting their assets there and trying to get into Dubai South. There hasn’t been much activity of Dubai South properties in the secondary market as of now, because investors are most likely waiting for Dubai realty to hit full recovery mode before doing so.

But they will also need to keep in mind that more developers are likely to get on the Dubai South bandwagon and that could keep prices grounded to around their launch range.

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Source: Gulf News

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MORTGAGE ON GRANTED LAND A WIN- WIN FOR DUBAI REALTY

Thursday, 17 November, 2016

It is a win-win situation for the property market with Dubai allowing mortgages on land given as grants. For the banking sector, it immediately means that the user base for its disbursals has expanded significantly. And, at the same time, it allows those granted plots — principally UAE nationals — to start developing on them without having to rely excessively on their own equity.

Taken to its logical conclusion, it means faster turnaround times on these plot developments. Also, with mortgages made available, those granted land will not have to rely on fund-as-you-go-along schemes to get their projects past completion. The on-the-fly financing have — more often than not — led to delayed projects in the past.

The Dubai Decree on mortgages for granted land can also be a game-changer of sorts for banks in the longer term. Banks here have relied predominantly on lending against property rather than land, partly because of the greater comfort factor this arrangement offers them.

“Historically, banks have not been eager to mortgage land because there were no mechanisms in place to ensure that repayment would be based on the development of the land itself,” said Sameer Lakhani, Managing Director at the consultancy Global Capital Partners. “They had to have visibility on income sources.

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“Where a mechanism was imposed, it was ‘bilateral’, thus making it a tedious task. With the Decree, there comes a ready-made mechanism to be imposed across the board. This allows banks more visibility on what they are lending into, and thereby accelerate the whole process.”

Based on industry estimates, few banks’ lending against land with the “funding ratio restricted to 50-70 per cent of the land value at borrowing rates starting from 6-7 per cent,” said Dhiren Gupta, Managing Director at 4C Mortgage Consultancy. “However, for residential property finance, banks are still quite competitive with the offering rates of 2.99 per cent for the salaried borrower and 3.39 per cent for self-employed.”

Market feedback suggests that of the overall mortgage disbursals in Dubai, those against land would account for between 25-30 per cent. Through the new Decree, sources hope to add another 5-10 per cent to the mortgage tally by the end of next year.

Lenders have traditionally been keen to “provide finance on ready property as it contributes strong collateral against the finance value,” said an industry source. “Moreover, ready property can generate immediate income, which is an added assurance to the lenders as compared to land as there is no recurring revenue.”

According to Gupta, “UAE nationals would benefit with the mortgage release on the land as they get to build up a structure as per plot type. This would in turn create an additional enticement to promote real estate development on the granted land as finance options become readily available.”

The Decree sets clear the mechanisms against which the banks can take mortgage exposures on granted lands. It includes those lands “owned by the government and granted to the beneficiary for residential, commercial or industrial purposes.”

The Decree states that the “beneficiary may mortgage the land to any bank or financial institution registered duly in Dubai. The mortgage is legally binding for all concerned parties if the monies arising from the pledge of the

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commercial and industrial land will be invested to achieve the purposes of the original grant; if the monies arising from the pledge of the residential land will be invested in maintaining, expanding or replacing the building and the pledge is registered concerning mortgages in Dubai.”

According to Lakhani, “The Decree is to stimulate development in the city to a subset of the population that until now did not have access to such credit facilities. So, in a sense, it is accelerating the pace of real estate activity. It’s another step towards encouraging SME activity as well.” Source: Gulf News Back to Index

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GROWING PRESSURE ON ABU DHABI

LANDLORDS TO LOWER RENTS

Wednesday, 16 November, 2016

Uncertainty in the global economic outlook is putting landlords in Abu Dhabi under increasing pressure to lower rental rates as tenants look for more affordable homes in the UAE capital.

According to the latest Abu Dhabi Property Review by Asteco, a real estate consultancy, large units are being affected the most amid a flight to smaller, cheaper units. In prime units, rental rates fell around six per cent in the third quarter of 2016 compared to the same time last year.

The drop was more prominent in certain areas in Abu Dhabi, with high-end units on the Corniche seeing rates drop nine per cent year-on-year.

“The ongoing redundancies across various industry sectors and the reduction of staff housing allowances continues to negatively affect demand in Abu Dhabi, with a number of tenants opting to downsize and/or move to more affordable developments,” said John Stevens, managing director at Asteco.

But it’s not just employees whose jobs are being axed or whose housing allowances are being cut or scrapped that are moving.

Even employees who still have their jobs are moving to more affordable units, according to Edward Carnegy, director and head of Cluttons Abu Dhabi, a property consultancy. He said the sentiment of uncertainty is far- spreading across industries and is impacting employees.

“Where people are worried about job prospects, there’s a natural flight to trim your costs, so this is showing itself in the market where tenants are moving from premium locations to secondary locations that are cheaper,” he said.

Such a drop in rental rates, which wasn’t so pronounced in 2015 and early 2016, is now narrowing the gap between rates in Abu Dhabi and Dubai where the decline in rates was more accelerated.

In its report, Asteco said the price difference for one- and two-bedroom apartments between Dubai and Abu Dhabi was typically Dh20,000 per annum, but this has narrowed to Dh10,000.

“The majority of vacant apartments, which were offered at reduced rates in Q2, have now been leased, especially the smaller unit types (studios, one- and two-bedroom units) … In comparison, rental rates for larger and more expensive three- and four-bedroom duplexes and town houses have fallen by 10 per cent since the last quarter, with a high percentage remaining vacant for over six months,” Asteco’s Stevens said.

In the office market, the performance is even weaker, with office rental rates currently at their lowest point since the market peak in late 2008. Rents in prime office buildings are now at around Dh1,600 per square metre, marking a four per cent decrease quarter-on-quarter.

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“Large corporate and government entities often form the main tenants of prime office space, and with uncertain economic conditions and low oil prices, demand from these organizations has weakened considerably,” Stevens said.

The decline comes amid a period of restructuring for many companies. In the past few months alone, there were announcements about mergers between sovereign wealth funds (Mubadala and Ipic), banks (National Bank of Abu Dhabi and First Gulf Bank), and subsidiaries of Adnoc (Zadco and Adma).

According to property consultancy, JLL, this has placed downward pressure on rents in the office market, with rents for Grade A and Grade B office supply down 5 and 12 per cent respectively in Q3 2016 year-on-year. Source: Gulf News Back to Index

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DUBAI LAND DEPARTMENT MAKES IT

OFFICIAL WITH NEW AWARDS

Wednesday, 16 November, 2016

The best real estate projects — luxury as well as affordable, hotels and offices — in the Gulf and even the “happiest community” are to be identified as the Dubai Land Department launches annual awards dedicated to the industry. In all there will be 21 categories under consideration for the first “Gulf Real Estate Awards”.

It is the first time that a local government entity associated with the real estate sector is coming up with such a programme. Over the years, there have been innumerable awards, but launched by private sector names and especially those in the media and related businesses. During the boom years, there were so many of these gongs and plaques going around.

This is something that the newly instituted awards will hope to try and change. With the Land Department at the helm, every effort will be made to ensure the winners are identified in the most transparent manner, officials said. And the process of submission begins now — those who do so by December 15 are eligible for “early bird” fees of $395 (Dh1,451) per category. Anything done thereafter will invite a submission fee of $475 per category, and need to be done by January 19. (All registrations have to be processed online.) The finalists will be identified by January 26 and the winners by April 19. Panels of “independent judges” will be set up for each category, and Land Department officials confirmed that extreme vetting will be done to remove any prospect of “conflicts of interest” on their part. Some of the judges will be from international jurisdictions.

The online submissions by themselves represent a vetting of the entries. They will be asked to provide 2,000 word overviews on why their projects should be considered for the awards and they need to be persuasive with their reasoning on how they are better than the competition.

Those entries going beyond the first post will make up the finalists, who will then have to give in-person presentations before the judging panels. “These awards are about individual projects and not going by the track- record of a developer or company over the years,” said Sultan Butti Bin Mejren, Director-General at the Land Department. “It will in no way penalise the small developer. Everyone stands a chance.”

And the award promoters also emphasise that this is a pan-Gulf initiative and not limited to projects and players in Dubai.

The launch follows the earlier signing of an agreement between Dubai Real Estate Institute, an entity part of the Land Department, with Awards International.

While naming the best luxury development out there might be relatively easy, homing in on the best in affordable could be trickier. According to Land Department officials, they will judge based on multiple criteria, chief among them would be whether a property in such a development can be paid off for less than 30 per cent of the buyer’s monthly income. Then the median income criteria for each Gulf state will come into play.

BOX — A checklist on the Gulf Real Estate Awards

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* There are 1 categories in all, including the best luxury and affordable projects. The best out there in verticals such as retail, hospitality and offices will also be named.

* Customer experiences form a key component of the awards, including coming up with the “happiest community”.

* Digital will also take a bow, in the form of the best real estate portal.

* Of course, the awards will identify the best brokerage firm. Source: Gulf News Back to Index

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

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

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