News Brief 48

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NEWS BRIEF 48

MON DAY 12 DECEMBER 2016

RESEARCH DEPARTMENT

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REAL ESTATE NEWS UAE

UK ANNOUNCES PARTICIPATION IN EXPO 2020 DUBAI UAE'S ALDAR ALLOWS FOREIGNERS TO BUY VILLAS IN WEST YAS PROJECT DUBAI NAKHEEL COURTS INDIAN INVESTORS FOR NEW PALM JUMEIRAH HOTEL AND RESIDENCES DUBAI'S IMG WORLDS UNVEILS NEWEST THEME PARK 'IMG WORLDS OF LEGENDS’ DUBAI WHOLESALE CITY INKS PACT WITH CHINA COMMODITY GROUP EVEN DUBAI’S VILLA PRICES ARE SHOWING SLIGHT GAINS OMNIYAT IS ALL SET TO RIDE THE CANAL WAVE DUBAI REAL ESTATE REGULATOR ANNOUNCES NEW SYSTEM TO REGULATE REAL ESTATE MARKETING MARIO VOLPI: WHAT CAN DUBAI LANDLORD DO IF TENANT DOES NOT VACATE APARTMENT THAT IS UP FOR SALE? THE DH146M EMIRATES HILLS FAMILY HOME FOR THE ELITE HEART OF EUROPE DEVELOPMENT AT THE WORLD ISLANDS OFF DUBAI COAST TAKES MAJOR STEP FORWARD ABU DHABI VILLA SALES IN ABU DHABI'S WEST YAS NOW OPEN TO EXPATS MARINA MALL ABU DHABI ANNOUNCES DH3B EXPANSION PLANS ABU DHABI DEVELOPER COMPLETES ‘PHASE THREE’ OF BLOOM GARDENS PROJECT NEAR KHALIFA PARK ALDAR PROPERTIES OPENS WEST YAS VILLA SALES TO EXPATS NORTHERN EMIRATES SHARJAH TENANTS GET SOME RESPITE AS RENTS DROP THIS YEAR

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NAKHEEL COURTS INDIAN INVESTORS FOR NEW PALM JUMEIRAH HOTEL AND

RESIDENCES

Thursday, 08 December, 2016

Dubai real estate master developer Nakheel is making its way to Mumbai for the Dubai Property Show to showcase a range of projects offering investment opportunities to the Indian market.

Nakheel’s Palm 360 hotel and residential development, located on Palm Jumeirah, will take centre stage at the event, which takes place at Mumbai’s Bandra Kurla Complex, 9-11 December 2016.

A wide range of other properties, some of which are ready for handover – are also on offer.

Indians – the top foreign property investors in Dubai – already account for more than 11 per cent of Nakheel customers, buying nearly 4,500 villas, apartments and land plots with a combined value of over $2.5 billion.

And in the first six months of 2016, Indian investors spent some $2 billion on Dubai real estate.

Sanjay Manchanda, CEO of Nakheel, said: “The Dubai Property Show is the perfect platform from which to expand our already-strong Indian customer portfolio by highlighting the supreme investment opportunities that Dubai has to offer.

“Dubai’s excellent transport, education, trade, tourism and recreational facilities entice millions of people to live, work and spend leisure time in the emirate. As the city continues to grow, so does the need for more accommodation and attractions for residents, tourists and businesspeople, meaning more new and lucrative opportunities for would-be investors.

"We look forward to capturing their attention at the show with a diverse range of projects, including our very latest creation, Palm 360.” Source: Emirates 24/7 Back to Index

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DUBAI'S IMG WORLDS UNVEILS NEWEST

THEME PARK 'IMG WORLDS OF LEGENDS’

Wednesday, 07 December, 2016

IMG Worlds, Dubai-based owner and operator of the world’s largest indoor theme park, IMG Worlds of Adventure, announces the launch of its latest project, IMG Worlds of Legends.

With nine unique zones spread across over 2 million square feet, IMG Worlds of Legends will feature some of the most exciting and popular brands in the world, making it one of the biggest global licensing deals of its kind.

IMG Worlds of Legends, situated adjacent to IMG Worlds of Adventure, will feature futuristic interactive rollercoasters, state-of-the-art rides, breath-taking water-based attractions, and spectacular live entertainment.

With its temperature-controlled environment and retractable roof, guests are offered the choice of enjoying the thrilling rides safely protected from the desert heat in summer or basking in the sun on the sky-high coasters in winter as IMG Worlds of Legends is open 365 days a year, offering the best of both worlds.

Owned and operated by IMG Worlds, IMG Worlds of Legends will offer a fully immersive experience, with each zone in the theme of a different imaginary world, complete with 104,000 square feet of food and beverage space and 102,000 square feet of retail space.

Commenting on the announcement, Ilyas and Mustafa Galadari, owners of the Ilyas and Mustafa Galadari Group, said:

“We are building on the success of IMG Worlds of Adventure with the next phase of growth – IMG Worlds of Legends. We are committed to bringing the boldest, most dynamic attractions to Dubai, combining innovative rides with value entertainment for the whole family.”

“We are encouraged to look to the future as Dubai races towards fulfilling the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to attract 20 million visitors to the emirate by 2020. We are fast becoming the family entertainment capital of the Middle East with high growth prospects that permit us to plan for the long term. We look forward to welcoming residents as well as visitors from the region and abroad to enjoy a unique theme park adventure like no other.”

Lennard Otto, CEO of IMG Worlds, added:

“IMG Worlds continues to attract truly international brands to Dubai and we are now one of the principal players in the global theme park industry. We have executed on our brand portfolio strategy, bringing together the biggest names in the industry under one umbrella to create the ultimate leisure and entertainment destination. IMG Worlds of Legends has beloved characters, dynamic rides, interactive attractions, and incredible architectural engineering across nine distinct zones, spanning over 2 million square feet.”

IMG Worlds of Legends will connect to IMG Worlds of Adventure via a state-of-the-art sky bridge, which will double as a gateway to the park.

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There will also be a pedestrian walkway, allowing easy transit between the two parks. Guests will be able to purchase tickets to each park separately or choose a multiple park pass for the ultimate day out for families and friends.

Attractions will include characters from global brands, such as:

• Nickelodeon

- Teenage Mutant Ninja Turtles

- Dora the Explorer

- SpongeBob SquarePants

• Ubisoft

- Assassin’s Creed

- Raving Rabbids

- Just Dance

• Saban Brands

- Saban’s Power Rangers

• Pokémon

• Mattel

- Barbie doll

- Hot Wheels

- Bob the Builder

- Thomas and Friends

- Mega Bloks

• The Animé Zone

- Toei Animation: Dragon Ball Z and One Piece

- TV TOKYO: Naruto

• Cartoon Network (a partner in IMG Worlds of Adventure)

- We Bare Bears

- Other hit and classic brands to be revealed

• IMG Worlds’ proprietary brands

- Legends of Arabia

- Lost Valley – Dinosaur Adventure

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Source: Emirates 24/7

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MARINA MALL ABU DHABI ANNOUNCES

DH3B EXPANSION PLANS

Tuesday, 06 December, 2016

With UPC approvals well underway, Marina Mall Abu Dhabi, the capital’s leading shopping destination and owned by the National Investment Company (NIC), will soon be breaking ground in Q1 of 2017 with major enhancements worth 300 million dirhams due throughout the mall; in addition to a new three-billion dirham extension.

Marina Mall Abu Dhabi will be undergoing a complete renovation and growing in size with a 120,000 sqm extension designed by DP Architects – a world renowned architectural firm based in Singapore and also behind the design of Dubai Mall. From exclusive luxury and high-end brands to the development of a world-class food court, the shopping destination will continue to deliver unique shopping experiences to suit all tastes.

Jihad Dirani, Head of Leasing at Marina Mall Abu Dhabi, said: “As one of Abu Dhabi’s established and most iconic shopping destinations, we strive to provide our visitors with an exclusive combination of unique shopping, entertainment and F&B experiences for the whole family to enjoy. We are entering an exciting phase of Marina Mall’s development, as we continue our journey to deliver an excellent visitor experience. We are currently in the process of selecting the right suppliers and contractors; whilst looking to evolve our leasing portfolio.”

The new extension plan will be divided into two parts, the north and south side of the mall, which will include the latest retail and F&B brands and new market entry brands exclusive to the mall. Furthermore, Marina Mall Abu Dhabi will expand its car parking facilities in coordination with the existing parking amenities for the new development, making it easily accessible to all visitors.

“Marina Mall Abu Dhabi has been a social and commercial success since its doors first opened over 14 years ago. In 2006, the mall went through major expansion plans, which included the addition of the iconic revolving restaurant tower, as well as an increase in mall facilities and retail outlets. As part of our growth strategy combined with the increase in visitor numbers, we are delighted to announce this major expansion.” Dirani added

Within close proximity to Marina Mall Abu Dhabi and part of NIC’s upcoming development projects is Marina Sunset Bay, which will further add to the area’s offerings. The private residential estate, comprising 67 luxury villas, on the breakwater with stunning views of the Arabian Gulf will be environmentally friendly.

Due to open in September 2017 and renowned for its luxury resort hotels across the globe, the luxury beach resort Fairmont Hotel will also be joining the properties in the area.

The developments in the area will also feature the Marina Promenade Abu Dhabi, a beautiful seafront walkway that is set include an amphitheater, an eclectic mix of restaurants, activity and entertainment options, a helipad, mosque, and lots more.

Marina Mall is also home to ‘Marina Eye’ – Abu Dhabi’s first and only Observatory Wheel, further adding to the mall’s impressive portfolio of attractions. The stand-out structure gives guests a bird’s-eye view of the impressive Abu Dhabi skyline.

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Source: Emirates 24/7

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DUBAI REAL ESTATE REGULATOR ANNOUNCES NEW SYSTEM TO REGULATE

REAL ESTATE MARKETING

Monday, 05 December, 2016

The Real Estate Regulatory Agency, the regulatory arm of Dubai Land Department, affirmed that a Real Estate Marketing Agreement is mandatory between owners and real estate brokers which will result in the issuance of permits through its e-service system.

There must be a written agreement in which property owners authorise real estate brokers to carry out their marketing campaigns, according to RERA's announcement about its new Real Estate Marketing Agreement - Form A - an important aspect of its electronic permit system.

Commenting on this, Ali Abdullah Al Ali, Director of the Real Estate Licensing Department at Dubai Land Department, said, "Dubai Land Department seeks to establish safe and attractive property investments. We aim to enhance the growth of our real estate industry, in order to further develop the local economy. To support these objectives, DLD works towards strong and effective regulation of the Dubai real estate industry. We regulate the process of advertisements within a specific agreement that defines the role of each party involved in any real estate sales or rent with total precision, which will guarantee the rights of all parties, including landlords, investors and brokers."

RERA’s statement announced that the Real Estate Marketing Agreement is mandatory between owners and real estate brokers which will result in the issuance of permits through its e-service system.

All Dubai real estate advertisement mechanisms will be regulated through this system, with RERA facilitating marketing agreements between the landlords and the brokers through its Form A.

The property owner is required to sign Form A to authorise real estate brokerage offices to market any properties, in order for any broker to obtain permission from DLD to represent properties for sale or for lease.

The landlord is permitted to deal exclusively or with more than one real estate broker for the marketing of any property. Source: Emirates 24/7 Back to Index

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UK ANNOUNCES PARTICIPATION IN EXPO

2020 DUBAI

Thursday, 08 December, 2016

British Prime Minister, Theresa May has confirmed that the UK will participate in Dubai’s Expo 2020. The Prime Minister informed His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, during a meeting in the margins of the annual meeting of leaders from the GCC currently being held in the Bahraini capital, Manama. The UK becomes the seventh country to announce its participation in association with Expo 2020 Dubai.

Speaking today, the British Prime Minister said, "I can confirm that the UK will take part in Dubai’s "Expo 2020" continuing the tradition started in Britain with The Great Exhibition of the Works of Industry of All Nations in Hyde Park in 1851.

"Dubai 2020 will offer an enormous commercial opportunity. There will be over 180 nations taking part with more than 25 million visitors expected – from the world’s top business leaders to its biggest investors. It is an opportunity which I am determined we should seize together."

British Ambassador to the UAE, Philip Parham said, "We are very excited at the prospect of UK participation in EXPO 2020. The UK conceived and convened the first of all World Expos, the Great Exhibition of 1851. We have participated in many Expos since. At the last Expo, in Milan, our national pavilion won 22 international awards, including - like our national pavilion in Shanghai in 2010 - the Gold Award for Architecture and Landscape. I am confident that the Expo in Dubai - which will be the first in this region - will leave an enduring legacy; and that the UK's participation will be an important part of that. The UK was an early supporter of Dubai's bid to host the Expo. British designers are already playing key roles in it. British innovation, flair and skill will help drive EXPO 2020's ambition to connect minds and create the future."

Opening on 20 October 2020, Expo aims to bring together 25 million visitors and 200 countries, companies and NGOs to celebrate human ingenuity.

It will be one of the largest global events in the history of the MEASA region. The event theme is ‘Connecting Minds, Creating the Future’, with subthemes of ‘Opportunity, Mobility and Sustainability’.

It is forecast to contribute EUR 17.7 billion in gross value added to the UAE economy over the period of development and operations, and to sustain up to 277,000 jobs.

The concept of a World Expo started in the UK with The Great Exhibition of the Works of Industry of All Nations in 1851. It was an event that started a legacy in the UK that continues to this day.

Imperial College London, Natural History Museum, Royal Albert Hall, Royal College of Art and other world renowned educational and cultural institutions can trace their origins to this first World Expo.

Dubai has a vision to create its own enduring legacy from Expo 2020. The UK will play a role in assisting the UAE to realise this.

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British architects have designed two of the three themed pavilions, and British firms are involved in the building of key projects.

Construction began on the site, which is located within the Dubai South district adjacent to Al Maktoum International Airport, in September 2016.

UK pavilions at recent World Expos have demonstrated the best of British creativity and flair.

The award winning "Hive" pavilion in Milan was the UK’s top paid for attraction in 2015 with 3.3 million visitors.

It has now been re-erected in Kew Gardens, linked to hives at Kew and using the same technology (accelerometers) as in Milan, measuring the vibration and communication patterns of bees, which the public is able to listen to live.

This is the first time a UK pavilion at a world Expo has been rebuilt in the UK enabling millions more visitors to experience it. Source: Emirates 24/7 Back to Index

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VILLA SALES IN ABU DHABI'S WEST YAS

NOW OPEN TO EXPATS

Wednesday, 07 December, 2016

A UAE developer is now allowing expatriates to own off-plan villas at its residential development in Abu Dhabi.

Aldar Properties’ West Yas, a master-planned community on Yas Island that offers 1,000 four and five-bedroom villas, was earlier sold exclusively to UAE nationals.

Residential units currently sell for Dh4.3 million and range from 600 to 800 square metres in size. The development promises “waterfront views overlooking the natural mangroves” around the island, which is also home to Yas Mall, Ferrari World, du Arena, Yas Waterworld and numerous hotels.

Mohamed Khalifa Al Mubarak, chief executive officer of Aldar, said that “significant” demand from other buyers have prompted them to open up the sales to all nationalities.

“We have witnessed significant demand for the enriched community living experience that West Yas offers in Abu Dhabi's most exciting destination – Yas Island. As such, we are delighted to open up West Yas to purchasers of all nationalities,” Al Mubarak said in a statement.

Interested buyers can purchase a home through a payment plan of 25 per cent during construction, and 75 per cent upon handover, with a minimum down payment of 5 per cent of the purchase price.

"West Yas is a key component of Aldar's commitment to provide high quality, comfortable, well-situated residences. This forms an important element of our destination development strategy – to create a vibrant mix of communities on Yas Island."

The community development will also have a mosque built for 2,000 worshippers, two schools, a retail centre, sports facilities, a petrol station, and extensive landscaping and greenery in open public spaces.

The first school, operated by Aldar Academies, has been handed over and operational since 31 August 2016. Source: Gulf News Back to Index

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EVEN DUBAI’S VILLA PRICES ARE SHOWING

SLIGHT GAINS

Wednesday, 07 December, 2016

Dubai’s high-end villas are starting to record some upward mobility after an extended spell of decline starting from mid-2014 onwards. Slight gains ranging between 1.6-1.9 per cent were recorded at Arabian Ranches, Jumeirah Village and those on Palm Jumeirah, according to monthly update from ValuStrat.

Certain apartment clusters were gaining in upward mobility — by between 0.9-3.1 per cent for units in Downtown Dubai, Motor City, The Views as well as Discovery Gardens.

Motor City is the closest to clawing nearer to its 2014 peaks — values there are now only 5.2 per cent lower, ValuStrat report states.

But some of the other areas in the city still saw a monthly price drop averaged 1.2 per cent for both villas and apartments. “Compared to a 100-point base in January 2014, the November 2016 overall residential price index registered 97.5 index points, with no significant change in values when compared to the previous 17 months and down 0.5 per cent when compared to the same period last year,” the report added. “During November, the villa market registered 96.7 points, down just 0.2 per cent since January and the apartment market registered 98.0 points, down 0.6 per cent since January.” Source: Gulf News Back to Index

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DUBAI WHOLESALE CITY INKS PACT WITH

CHINA COMMODITY GROUP

Wednesday, 07 December, 2016

Dubai Wholesale City, a global integrated wholesale trading hub and member of the Tecom Group, has signed a Memorandum of Understanding (MoU) with the China Commodity City (CCC) Group, the world’s largest exporter of goods, in China’s Zhejiang Province.

Aiming to build a strategic relationship between the two parties and leverage future collaborations between the UAE and China, the agreement will facilitate mutual trade and investment activities and the exchange of expertise, with a focus on developing wholesale trade destinations and wholesale e-commerce.

Dubai Wholesale City will collaborate with the Municipality of Yiwu City and the Government of Zhejiang Province, the largest shareholders in the Commodities City Group, in terms of investment and business development in the trade, manufacturing and logistical services sectors. Source: Gulf News Back to Index

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OMNIYAT IS ALL SET TO RIDE THE CANAL

WAVE

Wednesday, 07 December, 2016

Omniyat Properties will be sticking with its favoured location — Business Bay — for the launch of its flagship hospitality project, scheduled for the first-half of 2017. The property will occupy the “longest water frontage” of the newly opened 3.2-kilometre Dubai Water Canal.

The developer confirmed that the hotel’s operator has been identified — “It won’t be any of the already known names ... we need to have that point of difference in an already large hospitality market that we have here,” said Mahdi Amjad, Executive Chairman and CEO. “I believe that bringing in a unique brand gives a competitive advantage that more generic names can’t.”

On whether the alliance is with one of the super-niche operators in Europe, Amjad said: “All the good ones are ... from Europe.”

The Dubai Water Canal is creating a much needed impetus at the luxury end — both residential and hospitality related — of the city’s property market. A handful of developers are lining up plans to ride these advantages to their logical conclusion. (Residential properties could command values of Dh1,800 a square foot and more, and the fact that there will be limited number of waterside plots makes it a compelling hot spot for luxury asset seeking investors. Already the marketing side related to the Canal is getting into overdrive, with existing projects harping on the views they can provide of it.)

“We have a few major announcements coming up, but this will be the biggest one,” said Amjad. “Our largest project to date — the Opus — is due for delivery early next year. It took longer than expected ... but, now, we are in the market to add to our land bank and which would keep us active until 2019-20.

“What we have now should last us until 2017-18. But as in the past, Omniyat will remain extremely selective on what and where we acquire.”

New front

The developer closes the year with a portfolio valued at Dh16 billion, including projects that are to be announced in the near term. (The Opus in the Burj Khalifa District bears a distinctive design stamp — that of the late Dame Zaha Hadid — and will be managed by the Melia Group. The external structure with a hollowed out centre has a built-up area of 2 million square feet.)

“Hospitality is a relatively new front for Omniyat and something that we will build on,” the CEO added. “Going forward, commercial, residential and hospitality will be our core areas, with hospitality closer to the 30 per cent mark. Large retail will not be a priority for us, but community-themed retail will be.”

Even as it bulks up on its high-end options, a venture into the mid-market space — something the developer had spoken about in the past — is still a consideration. “We are working on it ... but it has to be in the “premium middle segment,” said Amjad. “We have to have that differentiation — it’s extraordinarily important for us.”

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On whether it will wait until the luxury end of the market corrects itself in full before launching new projects, Amjad said: “Dubai’s fundamentals remain very strong — and there will always be new investors from India,

Russia or Africa,” the CEO said. “Simultaneously, developers have to look to new markets to create the buying opportunities. There will always be such opportunities.” Source: Gulf News Back to Index

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SHARJAH TENANTS GET SOME RESPITE AS RENTS DROP THIS YEAR

Wednesday, 07 December, 2016

Sharjah’s residents are getting an extended respite — home rents have dropped for a second year running brought on by what is happening in Dubai and a surfeit of new supply being delivered in Sharjah itself.

“Weaker job growth and the loss of tenants to Dubai has led to rising vacancy rates,” says a new report from Cluttons.

“With rates in Dubai down 8 per cent on this time last year, Sharjah’s landlords have been left with no choice but to lower rents in order to remain competitive.

“There has also been a marked decline in overall tenant requirements as tenants find themselves in the unique position of being spoilt for choice.”

7.1% drop in 2016

In the year to date, Sharjah home rentals are down 7.1 per cent.

Even then, this is still 30 per cent up on what they used to be at the beginning of 2012. Until the recent correction, Sharjah’s residential rents had gone through the proverbial roof.

But these days it is a completely different dynamic - “Our expectation for a 10 per cent drop in average rents this year appears on track,” said Faisal Durrani, Head of Research at Cluttons. “While Dubai should see a reversal in the fortunes of its residential markets in autumn next year, any subsequent improvement in Sharjah, as has been the case historically, is likely to arrive shortly thereafter.

“Until we arrive at that tipping point, rents in Sharjah are likely to continue ebbing, with a further 5-7 per cent fall next year before things stabilise.”

Sharjah is also facing stiff competition from Ajman. “Rents in Ajman are even lower with buildings of equally good quality and similar facility offerings,” said Suzanne Eveleigh, Property Management Director at Cluttons. “The key to winning back those who have migrated to the more affordable options in Ajman would be through offering flexible payment plans, in addition to better packages.” Source: Gulf News Back to Index

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UAE'S ALDAR ALLOWS FOREIGNERS TO BUY

VILLAS IN WEST YAS PROJECT

Wednesday, 07 December, 2016

Abu Dhabi’s Aldar Properties has said it is allowing foreign nationals to buy properties in West Yas development after initially restricting to Emiratis.

The community on Yas Island comprises 1,000 villas, with prices starting from $1.17 million (AED4.3 million).

“We are delighted to open up West Yas to purchasers of all nationalities who will be able to take advantage of this master-planned community and its exceptional range of community facilities,” Mohamed Khalifa Al Mubarak, CEO, Aldar, said in a statement.

The developer is offering a flexible payment plan to buyers who have to pay 25 percent during construction and 75 percent on handover. The minimum amount of booking is kept at 5 percent of the purchase value, the company said.

West Yas features community facilities, including a mosque built for 2,000 worshippers, two schools, a retail centre, sports facilities, a petrol station, and extensive landscaping and greenery in its wide, open public spaces.

Infrastructure work is on track across all aspects of the development with much of it nearing completion. The mosque, retail centre and recreational club will be completed before year-end. In May this year, Abu Dhabi’s Urban Planning Council awarded the project a two pearl rating, confirming its compliance with Estidama goals. Source: Gulf News Back to Index

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ABU DHABI DEVELOPER COMPLETES ‘PHASE THREE’ OF BLOOM GARDENS

PROJECT NEAR KHALIFA PARK

Sunday, 11 December, 2016

Bloom Properties has completed the third phase of its Bloom Gardens development near Khalifa Park in Abu Dhabi.

Bloom said on Sunday that it had completed construction work on the 147 villas and town houses ahead of a scheduled handover in the first three months of next year.

Bloom, part of the Abu Dhabi conglomerate National Holdings, said the additional three-bedroom town houses, semi-detached three-bedroom villas, as well as four- and five-bedroom detached villas, which are only available to Emiratis, would bring "critical mass" to its Bloom Gardens development.

A first phase of 123 villas at the project, which is off Salam Street close to the Sheikh Zayed Bridge, was initially launched in 2008 while a second phase of 55 more was completed at the end of last year. The development also includes Bloom’s Brighton College school. A fourth phase of the project is planned as well as a community centre, a nursery and a polyclinic.

According to Propertyfinder, three-bedroom town houses at the project are being marketed for between Dh2.9 million and Dh3.5m. Bloom said it was experiencing "strong demand from home buyers and investors" in a statement.

Last week, Cluttons reported that economic slowdown and falls in the oil price were forcing house prices in Abu Dhabi lower. "The top end of the villa market has borne the brunt of a diminishing rate of creation of senior level positions, while housing allowances have also continued to slip across the board," said Edward Carnegy, the head of the Cluttons Abu Dhabi office.

Abu Dhabi’s largest listed developer, Aldar Properties, reported last week it had opened sales of off plan villas at its West Yas development to all nationalities after marketing it last year exclusively to Emiratis. Source: The National Back to Index

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THE DH146M EMIRATES HILLS FAMILY

HOME FOR THE ELITE

Thursday, 08 December, 2016

It’s pretty clear that 2016 hasn’t been the greatest year for the prime end of Dubai’s luxury property market. As Cluttons recently pointed out when issuing its third-quarter report, economic uncertainty and job losses in well- paid industries such as banking and finance have meant demand for luxury property, either to buy or rent, has declined.

As Faisal Durrani, the company’s global head of research, recently explained, the biggest declines in values across the city have been at the top end of the market.

There are some properties, however, that will always attract interest among a select group of buyers, such as this huge, six-bedroom, seven-bathroom villa at Emirates Hills, up for sale for Dh146 million.

The villa has 25,000 sq ft of living space on a 34,000 sq ft plot. Myles Bush, the chief executive of PH Real Estate, the agency marketing the luxury home, says that properties of this stature rarely come to market.

The villa overlooks the fairways and lakes of The Montgomerie golf course and the lakes behind it, while a number of ancient olive trees have been placed around the perimeter of the villa’s entrance. To the rear, there is an oversized infinity pool, an inset Jacuzzi and a fire pit for entertaining guests. The climate-controlled car parking area in the basement has space for up to eight vehicles.

Inside, the main living space is an open-plan area looking out over the golf course, with several other reception rooms making up the remainder of the ground floor. A family office and casual living space sits next to three of the smaller bedrooms that can be used either as guest or children’s bedrooms.

On the floor above, accessed either by a floating staircase or a Schindler lift, there is a pair of oversized bedroom suites with large bathrooms, walk-in wardrobes and private living and sleeping areas.

Other facilities alongside the huge garage in the basement is a gym, a steam room, a spa, a storage cellar for beverages, a maid’s quarters and a driver’s room. q&a only for the one per cent

Myles Bush of PH Real Estate tells Michael Fahy why this Dh146m villa justifies its price tag:

Who would live in a house like this?

The home will no doubt be sold to one of the select and most prominent dynasty families based here in the GCC. The villa is like nothing else that we have seen before and is really for a family who understand the true meaning of luxury and high-class living. This is not a property to be "flipped" or to make a quick buck from. This is a family home for the elite 1 per cent of the population.

What is its most impressive feature?

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Simply the attention to detail and build quality. Let’s be honest, most villas in Emirates Hills have six to seven bedrooms, a pool, a lift and some staff rooms. This particular villa has been created with so much more. Care has been taken over the materials used, time has been invested into the architecture and such consideration over the floor plan, flow and layout. This is a home like no other.

What are the neighbours like?

The neighbours within Emirates Hills understand quality living, they appreciate the finer things in life and they value privacy and security. They typically include celebrities, diplomats and captains of industry.

So there’s three bedrooms on the ground and two above. Where’s the sixth?

There is a self-contained studio that sits on a lower mezzanine level. Before you reach the basement with the gym, sauna and the other facilities, there is a doorway to one side. Source: The National Back to Index

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MARIO VOLPI: WHAT CAN DUBAI LANDLORD DO IF TENANT DOES NOT VACATE APARTMENT THAT IS UP FOR SALE?

Saturday, 10 December, 2016

We bought an apartment that is currently rented. An eviction notice was send to the tenant by the previous owner, registered in the court and sent by courier. The reason for the eviction is our intention to sell the apartment. I have been trying to contact the tenant but she does not reply to our messages, emails or phone calls. The rental agreement expires very soon and is the same date as the eviction notice that was served a year ago. If the tenant does not vacate apartment in time I am in a really uncomfortable situation. What can I do? AK, Dubai

In theory, the tenant in situ has received the eviction notice in the correct manner and for the correct period (12 months). The only problem I foresee is that if the tenant refuses to leave, you are then left without an alternative but to file a case at the rental dispute committee. However, the outcome may not be 100 per cent what you expect. The judge will have to decide if the tenant should vacate as per the original notice or it is also possible the judge may allow the tenant to stay one more year and request that you (as the new owner), send your own 12 months’ notice. The outcome is not predictable at all.

Every year I have a rental dispute with my landlord’s agency in terms of increasing the rent. I normally wait for couple of months and then deposit the cheques at the Real Estate Regulatory Authority (Rera) with a nominal increase of rent. This year too they have demanded an increased rent, which I think was within the Rera index at that point of time. However, they refused any negotiation. The tenancy is in my wife’s name and she is outside the country now but keeps travelling to Dubai. The landlord’s agency, when communicating with me through email, has said it filed a case against me three months ago. It has never given me the case number. Now it is almost six months since my tenancy contract expired. I don’t want to continue with this property or the landlord’s agency. So how can I file a vacating notice as they say they have a case against me. I am fine with paying the rent that I owe. Should I wait for the eviction procedure or go to Rera? Additionally they have not done any maintenance on the property during my six years of living here. AS, Dubai

If you wish to terminate the agreement, the following should be adhered to: 90 days before the renewal of the agreement, you should inform the landlord (in writing) that you do not wish to renew. The 90-day rule is there to inform either party of any changes to the contract. Not wishing to renew would be a material change (in my opinion), which is why it is important to give this amount of notice.

You mention that it is almost six months since your contract expired but any contract automatically renews unless terminated so I presume you have been living in the property without payment of rent, which is why the landlord is saying that a case has been filed against you. I suggest you pay the outstanding rent owed as you have done before and lodge the cheques with Rera. Check the contract to see what it says about terminating early as most contracts state a two-month penalty clause to leave before expiration date. If you do not wish to pay any penalty by leaving midway through, I suggest you leave at the end of this current term but state this fact by giving the

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landlord the 90-day notice. In the meantime, I would just sit tight and wait to see what happens with their case, no need to file anything yourself because you want to leave anyway, correct?

With reference to the non-maintenance, I presume this is the case because either you have taken care of this or there have been no maintenance issues to sort during this time. Either way, the landlord does have a duty of care to you to maintain and or repair the property as necessary.

Mario Volpi is the chief sales officer for Kensington Exclusive Properties and has worked in the property industry for the past 32 years in London and Dubai. The opinions expressed in this article are those of the author and they do not reflect in any way those of the institutions to which he is affiliated. It does not constitute legal advice and is provided for information only. Please send any questions to [email protected]. Source: The National Back to Index

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ALDAR PROPERTIES OPENS WEST YAS VILLA

SALES TO EXPATS

Wednesday, 07 December, 2016

Aldar Properties has opened up sales of off-plan villas at its West Yas development to all nationalities.

Abu Dhabi’s largest listed property developer was marketing the development of 1,017 four-bedroom and five- bedroom villas on Yas Island last year exclusively to Emiratis.

The villas, located along the island’s mangroves, are expected to be handed over to buyers at the end of next year. Aldar said prices start from Dh4.3 million and the villas range from 600 to 800 square metres in size.

The company said it was offering buyers a payment plan where they could pay 25 per cent during construction and 75 per cent upon handover, with a down payment of just 5 per cent of the purchase price.

Aldar said on Wednesday that it was making the move because it had recorded "significant demand" for the villas.

"We have witnessed significant demand for the enriched community living experience that West Yas offers in Abu Dhabi’s most exciting destination, Yas Island," said the Aldar chief executive Mohamed Khalifa Al Mubarak. "As such, we are delighted to open up West Yas to purchasers of all nationalities who will be able to take advantage of this master planned community and its exceptional range of community facilities."

The news comes as property brokers in Abu Dhabi continue to report falling demand for high-end villas as low oil prices force companies to cut back on hiring the sort of high-earning executives who can afford to rent such expensive properties.

On Monday, Cluttons reported that average house prices in Abu Dhabi fell by 5.2 per cent in the first nine months of the year and were expected to fall further. "The top end of the villa market has borne the brunt of a diminishing rate of creation of senior level positions, while housing allowances have also continued to slip across the board," said Edward Carnegy, head of the Cluttons Abu Dhabi office.

Aldar said much of the infrastructure work on West Yas was nearing completion.

Aldar made the West Yas announcement before the markets opened. Its shares rose 2.3 per cent to close at Dh2.66 on Wednesday, versus a rise of 1.7 per cent for the benchmark index.

For the year to date Aldar shares are up 14.6 per cent while the wider market is up 2.9 per cent. Source: The National Back to Index

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HEART OF EUROPE DEVELOPMENT AT THE WORLD ISLANDS OFF DUBAI COAST TAKES MAJOR STEP FORWARD

Wednesday, 07 December, 2016

Plans to develop a group of islands at The World islands off Dubai’s coastline have taken a major step forward after developer Kleindienst Group appointed main contractors to build its Heart of Europe project.

A joint venture between Dubai-based JK Bauen and Chinese contracting companies Wuchang Ship Building Industry Group and Sino Great Wall International Engineering will be carrying out projects worth Dh4.8 billion to develop facilities on the six offshore islands that make up the Heart of Europe.

JK Bauen is a construction company owned by Mr Kleindienst. It has been carrying out work at The Heart of Europe on its Sweden Island since recommencing work on the project two years ago, and will be responsible for much of the preparation works such as the shaping and compaction works of the island, plus logistics.

Wuchang and Sino Great Wall will be responsible for the assembly and fit-out of most of the buildings, including the 14 hotel resorts proposed and around 2,000 villas.

Mr. Kleindienst said that that the signing of a letter of agreement between the contractors has allowed for an immediate start for work on the Main Europe island featuring most of the hotels, the German island and St Petersburg island, with a view to the entire project completing before Dubai’s Expo 2020 gets underway.

He said that there had been "a long discussion in the company about how – and with whom – to build this project".

Discussions took place "with many of the building giants" in Dubai, which would have involved the creation of four or five different contract packages and contractors. At the same time, it held talks with potential joint venture partners.

A deal with Wuchang, which is the majority joint venture partner, meant that it could proceed with just one joint venture partner, which he explained was better than having five firms trying to work on a relatively small site of six million square feet.

He said that Wuchang and Sino Great Wall are both "heavyweights" in China who have partnered on more than 100 five-star hotel projects, including one in the under-construction Greenland Centre — a 636m-high skyscraper in Wuhan.

"I have been there to visit the factories, to visit their projects to understand their method and quality of work. I was amazed. That’s not always the case when you visit a contractor," said Mr. Kleindienst."

The World is a group of 300 artificial islands created from reclaimed sand some 4km off Dubai’s coast. The islands were built and sold by master developer Nakheel and sold to investors before the global financial crisis, but only two have been built on, and one of these is a private island.

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Many of those that bought islands had complained about the lack of access to them. A number of disputes arose between Nakheel and sub-developers were filed at the Dubai World Tribunal, but in May 2013 Nakheel and

Kleindienst announced that they had settled their case, with Kleindienst agreeing to pay Dh622m it owed to Nakheel-owned company The World so it could move its project forwards.

Mr. Kleindienst’s firm had first invested in the project in 2007, and he said that their construction has been "a never-ending chain of resolving issues".

For instance, it had initially been unable to gain approval from Dubai Civil Defence to have manpower on site because there was no practical way for them to respond to emergencies. This has been resolved by Kleidienst having its own emergency response force trained and on permanent deployment. Moreover, most of the construction work has to take place in Dubai, with modules then shipped and installed on the islands.

"For the fit-out, we are using a system we build on land into moulds."

The first building – a 25,000 sq ft villa with interiors by Bentley Home – could be completed next month, said Mr Kleidienst, although it will be used as a model unit until December next year when it will be refurbished and handed over. The first resort hotel, Honeymoon Island, is also due for completion next year, with the remaining hotels and villas being handed over in phases between 2018-2020.

"I am 100 per cent against soft openings. I want full openings, but you can’t fully open 3,800 rooms. We need to build and open phase-by-phase," he said. Source: The National Back to Index

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