News Brief #15

Home , Developments in Dubai, Sky Gardens

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NEWS BRIEF #15

SUNDAY 14 APRIL 2013

RESEARCH DEPARTMENT

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REAL ESTATE NEWS

GCC/MENA FDI flow into GCC rebounds Mena hotels achieve positive start to the year

ABU DHABI New shopping mall in Al Bahia to open this year Futuristic tower's future back on 5,000 new flats to push rents down on Abu Dhabi's Reem Island TASWEEK to present AED 500 million integrated housing project at Cityscape Abu Dhabi 2013

DUBAI Dubai Al Qouz 4 internal road works completed Emaar launches new 188 villas in Reem, 3-bedroom priced less than Dh1 million Tecom adds 160 new companies to ICT cluster High demand drives Dubai office, retail rents up Damac flats from Dh449,000 Rashid Tunnels project nears completion Emaar releases additional units after ‘mad scramble’ at Dh1 million villa launch Nakheel wins fight over islands Serviced residences offer sure-fire formula Shifting trends - Dubai tenants now head towards property ownerships, reports Bayut Increasing rents in Dubai drive tenants towards lower budget homes Seven Tides appoints Better Homes as exclusive sales agent for new Palm Jumeirah luxury resort residences JLT, Dubai Marina, Palm prices rise by up to 10% in Q1 Luxury Dubai villa prices up 9% since Q3 2012 Dubai's DPG launches sales at delayed Mudon project Limitless says Dubai business park is now 73% full

NORTHERN EMIRATES New mall and residences planned in Sharjah

BAHRAIN Khaleeji Commercial Bank Signs MoU with Ebrahim Abdulaal Group to Offer Property Finance

KSA Injaz: Saudi real estate sector to see accelerated growth in line with Mortgage Law and Additional Loan Program

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Dubai Al Quoz 4 internal road works completed

SUNDAY 7 APRIL 2013 Dubai’s Roads & Transport Authority (RTA) has completed the construction of internal roads of Al Quoz 4 Residential Area Project in District 359; which is bordered by Al Waha Road to the north, Al Khail Road to the east, Latifa bin Hamdan Road to the south, and Al Asayel Road to the west.

Al Quoz Residential Area 4 Project comprises the construction of 8 km-long roads covering internal roads, roadside parking spaces, street lighting, road marking, light signals and traffic safety works, including rainwater drainage systems and protection of the existing utility lines in the project area.

“By completing project works in Al Quoz 4 Residential Area Project, which started in May 2012, the RTA has provided smooth traffic flow in the internal roads across the entire area and smooth entry and exit of residents,” said Maitha bin Udai, CEO of RTA Traffic & Roads Agency.

“Al Quoz area currently has projects underway including the R 911 Project at Al Qouz 2, which covers an area of 225 hectares in Area 355 comprising 3.7 km-long dual carriageway, 7 km-long two-way streets with roadside parking slots, seven roundabouts, and street lighting works in addition to storm-water drainage and sewage networks.

“Al Quoz 3 is also seeing the construction of 3.3 km-long one-way streets along with roadside parking spaces, and 5.3 km-long roads along with associated logistical services,” said Maitha.

Source: Emirates Business 24/7 Back to Index

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Emaar launches new 188 villas in Reem,

3-bedroom priced less than Dh1 million

MONDAY 8 APRIL 2013 Emaar Properties will launch sales of 188 townhouses in Mira, the first residential community in Reem.

Located near Arabian Ranches, the Dubai developer will launch various types of Mediterranean-styled townhouses with prices starting at Dh988,888 for 3-bedroom homes.

A full-fledged lifestyle community focused on leisure, Reem marks the first time that a gated community in Dubai will feature a desert botanical park, camping facilities, sand surfing and camel riding trails, go karting track, dune buggies, rock climbing wall and a skate park. Anchored by a sweeping central park, the development will also feature interactive fountains, walkways and a centrepiece water feature.

Adding to the convenience of residents are mosques, a central park, retail plaza, residents’ club, restaurants and cafes, nurseries and primary schools, jogging and bicycle paths, a cricket pitch and several football fields, a miniature golf course and an amphitheatre outdoor cinema – all set within the neighbourhood.

Sale will commence on Saturday April 13 at the Emaar Sales Centre in Emaar Square, Downtown Dubai, on a first-come, first-served basis. Potential customers are requested to be on-site for registration at 7am.

Located next to the Arabian Ranches extension, Reem is conveniently situated at the cross-roads of Al Qudra and Emirates Road. It is also in close proximity to the Arabian Ranches Golf Club, Dubai Polo & Equestrian Club and Global Village, and just over 20 minutes from Downtown Dubai and the Dubai International Airport.

Ahmad Al Matrooshi, Managing Director, Emaar Properties, said: “We are giving a new interpretation to leisurely lifestyle with Reem, which meets the growing demand for villas and townhouses in Dubai. Every aspect of Reem has been carefully designed to offer an unprecedented lifestyle ambience that draws on the soothing comfort of traditional desert oasis.”

He added: “Ideal for families seeking a relaxed environment, away from the bustle of the city, Reem will be a tranquil setting where residents can enjoy the thrills of the desert including buggy rides and camping. The distinguishing feature of Reem is its landscaping that places equal emphasis on greenery and sandy desert landscape. Reem is inspired by nature, and is envisaged to be a much sought-after community with its promise of a refreshing lifestyle. Mira will be the first of many similar residential communities to be developed in phases within Reem.”

The three-bedroom Mira townhouses will a focus on spacious comfort. The townhouses reflect the world- class communities developed by Emaar in Dubai. All the houses will have spacious balconies, modern fittings and fixtures, driveways and courtyards. Emaar is currently launching the first phase of the project, with the homes scheduled for hand-over in 2016.

Reem is the latest addition to the portfolio of residential project launches by Emaar in Dubai this year. It follows overwhelming customer response to the launch of The Address Residence Sky View, The Address

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Residence Fountain Views I and II and The Address The BLVD, all in Downtown Dubai. Emaar has also launched CASA, a Moroccan-style villa community, as part of its Arabian Ranches extension.

Source: Emirates Business 24/7 Back to Index

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FDI flow into GCC rebounds

MONDAY 8 APRIL 2013 Foreign direct investment (FDI) flow into Gulf hydrocarbon producers rebounded in 2012 after a decline for three successive years because of the cancellation of key projects in some regional countries, according to a regional report.

The flow into the six-nation Gulf Cooperation Council (GCC), which controls over 40 per cent of the world’s recoverable crude deposits, stood at around $27.9 billion (Dh102 billion) last year compared with about $24.5 billion (Dh90 billion) in 2011, an increase of 13.8 per cent, the Kuwaiti-based Gulf Investment Corporation (GIC) said in its monthly economic bulletin.

“The increase illustrates the improvement in the investment climate in the GCC countries and the emergence of new major investment opportunities in key sectors in member states,” said GIC, which is owned by the GCC governments.

It gave no breakdown but the UAE and Saudi Arabia are expected to have attracted more than half those investments, mainly from the West and Asia.

Official data showed FDI into the GCC plunged by nearly 35 per cent in 2011 for the third successive year mainly because of the cancellation of large projects in the UAE and Saudi Arabia, the largest Arab economies. It was the third year that such flows recede after they hit an all time high of $60.3 billion in 2008.

“Inflows in 2011 were at their lowest level since 2004,” National Bank of Kuwait said, citing a recent report by the UN Conference on Trade and Development (UNCTAD).

“The suspension or cancellation of a number of mega projects in the region particularly in Saudi Arabia and the UAE due to difficulties in securing project financing were cited by UNCTAD as major reasons for the contraction in inflows.”

The report showed that in the UAE and Saudi Arabia, the number of cancelled or suspended construction projects as of end-2011 stood at about $958 billion and $354 billion, respectively. But FDI to the UAE has actually been increasing year-on-year since the Dubai debt problems of 2009, the report showed.

Qatar, on the other hand, recorded negative net FDI inflows of -$86.8 million, which is most likely a result of repatriation of investments and proceeds by foreign corporations following completion of LNG infrastructure expansion.

In the wider region, FDI inflows to countries affected by the Arab Spring have plummeted. Egypt, Libya and Syria, witnessed significant declines.

“Despite the Arab Spring upheavals, which will continue to affect investment flows in 2012, the longer- term prospects for regional FDI are good,” NBK said.

“With the GCC states pursuing ambitious development and diversification plans and unrest-affected countries like Egypt, Tunisia and Libya committed to restructuring their economies and to secure their political transition, business opportunities should be forthcoming, particularly in the services and manufacturing sectors.”

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Source: Emirates Business 24/7

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Tecom adds 160 new companies to ICT cluster

TUESDAY 9 APRIL 2013 Tecom added 160 new business partners into its Information and Communications Technology (ICT) cluster to take the total number to 1,520 companies last year.

Tecom’s ICT cluster includes Dubai Internet City (DIC) and Dubai Outsource Zone (DOZ).

Key sectors that saw new additions within DIC include internet and multimedia software, telecommunications and IT services.

“2012 was a continuation of our growth. It was in line with our growth expectations. Expansion of business partners inside the community is another clear evidence for us for the industry growth. More than 60 companies expanded their presence and operation in the community,” Malek Al Malek, Managing Director of Dubai Internet City and Dubai Outsource Zone, told Gulf News.

Out of 160, he said that 156 new companies joined DIC and four joined DOZ. As of 2012, 1,400 companies operate at DIC and 120 at DOZ. The occupancy rate at DIC stands at around 98 per cent while it is 100 per cent at DOZ.

Throughout 2012, DIC has also increasingly turned its attention to supporting and nurturing small and medium enterprises (SMEs), and encouraging the development of innovative ideas.

“We see a recovery for many sectors in the economy this year and this will positively impact the industry growth. We will be servicing both local start-ups and MNCs, but local start-ups need more focus to grow to the next level. We continue to attract big multinationals but we are now also promoting start- ups and local technology companies from this region,” Malek said.

He said similar numbers of business partners are expected to join this year. “We are after bigger companies that do not have an operation here.”

Investing in innovation

“The UAE is one of the few countries that is truly investing in innovation through its various incubation programmes and funding tie-ups with international governments and private equity companies,” he said.

The year witnessed the development of the in5 innovation hub, a technology start-up incubator that aims to foster entrepreneurships and drive innovation. Hosted in DIC, In5 aims to foster and promote entrepreneurship and innovation in order to develop a technology start-up ecosystem in Dubai. The hub provides infrastructure, support and a dynamic and engaging working environment to entrepreneurs from the early stages of idea creation through to idea implementation and the commercial launch of a product or service.

He said DOZ also witnessed growth throughout last year. Dubai now counts for 90 per cent of the UAE’s outsourcing industry, and unlike other outsourcing hubs around the world, DOZ is a cross-sector zone catering to all types of outsourcing processes.

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According to a recent report by Gartner Inc, ICT expenditure in the Middle East is forecast to reach $192 billion this year, a 5.5 per cent increase from 2012.

Source: Gulf News Back to Index

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New shopping mall in Al Bahia to open this year

WEDNESDAY 10 APRIL 2013 Deerfields Townsquare, a new mall built at a cost of Dh700 million on the outskirts of Abu Dhabi city in Al Bahia will formally be opened in the fourth quarter of 2013, Mohammad Al Haj, chief executive officer of Mubarak Brothers Investments told reporters here at a news conference yesterday.

“We have invested about Dh150 million in the project. The debt-to equity ratio is 80:20. Emirates NBD and National Bank of Abu Dhabi are funding the project. Our contractor Fibrex is also an equity contributor,” said Al Haj.

Banu Tas, general manager of the Deerfields Townsquare Shopping Centre said the mall’s “soft opening” will take place on May 6 with October being targeted as the month for the mall’s formal grand opening.

“There will be 180 stores in all, at the mall, spread across three floors, while the garden level is reserved for casual dining. We have parking space for up to 3,000 cars and are targeting Al Bahia, Shahama, Al Rahba, Al Reef, Khalifa City A & B, Al Raha Gardens and Al Raha Beach as our catchment areas where the total population is about 150,000 and expected to rise to 200,000 over the next five years,” said Tas, adding that so far, up to 69 per cent of the stores have been leased and by the time the mall is formally opened, they shall have leased out 85 per cent of the total available retail space at the mall.

“There are leases running from up to 3 years to 20 years, depending on the size and the nature of the retail. Major global brands that have leased retail space at the mall, include Carrefour, Rolex, Starbucks, Nine West and Aldo.”

Tas said the Deerfields Townsquare mall has an easy accessibility to the freeway, it’s conveniently located and since there’s no shopping mall in the vicinity, they are expecting a high footfall — about 12 million people during the first year of the mall’s operations, and 15 million a year from the second year onwards.

The community mall development at Al Bahia complements the Abu Dhabi Urban Planning Council’s Revitalisation Master Plan for the emirate’s Shahama and Bahia areas.

Source: Gulf News Back to Index

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High demand drives Dubai office, retail rents up

WEDNESDAY 10 APRIL 2013 Increased demand for commercial space has driven office rents in prime locations up by 10 to 15 per cent over the past six months, although other “submarkets” continue to struggle to attract tenants, real estate specialist Cluttons announced yesterday.

The uptick in demand is likely to revive stalled development projects in some areas in Dubai.

Cluttons also reported that due to high wealth levels and consumer confidence there is a “considerable activity” in the retail sector, with malls reporting increased footfall and sales, and community retail spaces posting rent increases of 12 to 15 per cent year-on-year.

Clutton’s report said office rent rose in areas once hit by the property fall in 2008, including Jumeirah Lakes Towers, Tecom C, Al Barsha and Business Bay, where rents had previously nosedived by as much as 50 per cent. “JLT and Business Bay, in particular, have seen a significant improvement in both inquiry levels, take-up of space and rising rental levels,” Cluttons said in its report.

Rates in Prime Grade A locations remain “competitive”, prompting some landlords to split units into smaller floorplates and fitting out space to draw tenants.

Rents at prime properties such as Almas Tower in JLT have gone up to Dh150 per square foot per year. In new buildings on Shaikh Zayed Road towards the Trade Centre area, rents now cost Dh100 to Dh140 per square foot. Downtown Dubai and Emaar Square areas command the highest rents hovering between Dh140 and Dh180 per square foot annually.

In the retail sector, Paula Walshe, head of commercial at Cluttons in Abu Dhabi said they have seen considerable interest in small non-mall retail spaces across Dubai especially in JLT and Al Barsha. “This interest has been from independent operators including locals,” Walshe told Gulf News.

Cluttons said the retail sector is exhibiting positive signs with Emaar Properties reporting an increase in visitor traffic and sales. Footfall is strong in shopping areas like Mall of the Emirates, Mirdif Mall and Deira City Centre, which enjoy very low to zero vacancy rates.

Source: Gulf News Back to Index

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Damac flats from Dh449,000

WEDNESDAY 10 APRIL 2013 An artist's impression of Lincoln Park on Dubai's Umm Suqeim Road, launched by DAMAC Properties.

Damac Properties has launched its latest serviced apartments on Umm Suqeim Road in Dubai, with units starting from Dh449,000.

Lincoln Park, which will be completed by the end of this year, is near the recently opened Miracle Garden and is just ten minutes drive from the Mall of the Emirates and Sheikh Zayed Road. The project offers a luxurious family living environment within easy access of both sides of Dubai.

“Lincoln Park comes with a gymnasium, swimming pool, restaurants and retail outlets and offers all the conveniences of a serviced apartment at an unbeatable price,” said Ziad El Chaar, Managing Director, Damac Properties.

Lincoln Park comprises one, two and three bedroom units, inspired by Chicago-style architecture, flat roofs with parapet walls and roof terraces.

Source: Emirates Business 24/7 Back to Index

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Rashid Tunnels project nears completion

SATURDAY 13 APRIL 2013 The Roads and Transport Authority (RTA) says it has completed 96 per cent of the work on its Rashid Hospital Tunnels Project which comprises the construction of roads and two tunnels to serve the traffic inbound from Tariq Bin Ziyad Road and Umm Hurair Road in the direction of the intersection of Riyadh Road and the extension of the Floating Bridge.

Highlighting the project, Maitha Bin Udai, CEO of RTA Traffic and Roads Agency, said: “The first tunnel comprises two lanes inbound from Tariq Bin Ziyad Road passing beneath Al Maktoum Bridge, and the second tunnel also comprises two lanes crossing Oud Metha Park. The two lanes converge to form a four-lane tunnel in the direction of Riyadh Road via Rashid Hospital.

“The project is conceived in the context of RTA Master Projects Plan aimed at easing traffic congestion in the vicinity of Rashid Hospital and Dubai Media Inc to the extent of handling 6,000 vehicles per hour,” added Maitha.

She confirmed the completion of infrastructure works related to utility services in the project such as Dewa (Dubai Electricity and Water Authority) lines, sewage services, telecommunication networks, and storm-water drainage system in addition to construction works of vehicle and pedestrian tunnels. Maitha explained that completion rate reached 90 per cent in the electromechanical works in the tunnels, and 95 per cent in roads, light signals and street lighting works, adding that the project is set for final completion and full opening in the middle of this year.

“The RTA has completed a number of projects in Bur Dubai to ease traffic snarls and enhancing roads capacity to cope with the growth and urban expansion,” said Maitha. She stressed RTA’s attention to upgrading the infrastructure of Dubai by undertaking a number of vital projects and related service improvement plans.

Source: Gulf News Back to Index

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Emaar releases additional units after

‘mad scramble’ at Dh1 million villa launch

SUNDAY 14 APRIL 2013 If you thought you missed out on the under-Dh1 million price-tag for a 3-bedroom Emaar villa in Dubai, which went on sale earlier today, well, you should know how the sale event went.

“There was utter madness at the sales event,” an eyewitness told Emirates 24|7.

As reported earlier by this website, hundreds of hopefuls were camping outside the Emaar Sales office in Downtown Dubai since Thursday morning, 48 hours before the actual sales event.

Reminiscent of the property heydays, more than 1,000 ‘potential investors’ found themselves outside real estate developer Emaar Properties’ office in Downtown Dubai, waiting for the developer to begin the sale of the first phase of its latest project ‘Mira’, the first residential community in Reem.

With just 188 villas supposed to go on sale, those thousands of potential investors had but a slim chance of bagging a part of the project at under Dh1 million for a three-bedroom villa. But there were additional units released after the “overwhelming” response.

“With the launch of Mira townhouses in Reem generating overwhelming investor response, several additional units were released for sale, over and above the 188 townhouses that were originally part of the launch,” a spokesperson for property developer Emaar told Emirates 24|7 in an e-mailed statement.

Emaar had announced that the project would go on sale at 7am on the morning of April 13, 2013, Saturday, on a first-come-first-serve basis. “We adopted a first-come, first-served basis to give more opportunity for investors in the UAE and internationally to be part of the sales,” Emaar's spokesperson said in the statement.

“Everything was okay until just before 7am, but then some people tried to break the barricades in a bid to crash the queue,” the eyewitness recounted.

“Eventually, police and ambulance had to be called,” he said, adding that a woman passed out in the ensuing melee.

Apparently, words were exchanged and there were even fisticuffs between security guards and hopeful homeowners as ‘investors’, some of whom had braved two nights and three days outside the Emaar office, began losing their patience as others tried to outsmart them by sneaking in at the top of the queue.

“The investors who had arrived much ahead of the sales were informed that sales will commence only on Saturday morning. However, due to the significant crowd that had formed, the sales had to be delayed,” according to the Emaar statement. “We worked with the concerned authorities to manage the crowd, and we regret the inconvenience caused to investors due to the unprecedented rush.”

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However, market participants believe Emaar could have handled the sales process in a better way. “The headline price-tag of Dh988,888 turned out to be misleading,” Shamsh Kalkar, CEO and President of Dubai -based Kalkar Real Estate, told this website.

Nadeem Tariq, Director, Dubai-based Aaj Properties, told Emirates 24|7 that “while there were only three to four such villas on sale at the launch, the actual average price of the three-bedroom villas on sale ranged between Dh1.1 million and Dh1.7 million.”

The payment plan, according to Tariq, who claims to have landed some 'great bargains' is 5 per cent through a current-dated cheque, 10 per cent by July-end, 15 per cent in December, 10 per cent next April, and so on.

“This was a remarkable launch,” said Tariq, adding that he and his colleagues and family were in the queue since Thursday. “My father's token was No. 1,” he proudly told this website.

“Type 3M/3E villas with a better location, park or pool-facing, went for about Dh1.425 million while the extra-large Type 1E kind of villas were priced at up to Dh1.6 million,” Tariq said.

According to him, a normal Type 3M villa was on offer for Dh1.1 million, while Type 1M villas were sold for Dh1.48 million, and Type 2E villas were offloaded at Dh1.575 million.

There have been unconfirmed reports that a few ‘smart’ investors even offered up to Dh10,000 to those near the top of the queue, aware that some of those in the line were just there to collect a token on behalf of the real investors.

“After the initial fracas, Emaar officials announced that the sale had been ‘cancelled’, and asked those outside their office to leave,” the eyewitness told Emirates 24|7.

With a large number of hopefuls turned away, Emaar eventually began the sales process at about 10.30am, onlookers said.

“I believe investors had to put up a 5 per cent deposit,” Kalkar said.

In addition, in a bid to discourage property flippers, Emaar has in the past included clauses where the resale of an off-plan unit is barred until the construction-linked payment of at least 30 per cent of the unit's value. The developer is expected to be following the same structure with the current project as well.

That, however, doesn’t seem to be holding back the ‘lucky’ agents from flipping. Kalkar maintains that a number of Dubai-based property agents attended the launch, and some of those who managed to net properties have already put them back in the market at up to 25 per cent premium.

Not many, however, will be inclined to resell the villas as the scope of appreciation, in Tariq's words, is tremendous.

As Kalkar puts it, “While investors lining up for a good project signals pent-up demand and market’s faith in the developer’s ability, with the mad scramble witnessed today, one can only hope that the crazy days of 2007-08 don’t come back to bite us again.”

On the other hand, Tariq claims that with the Dubai economy back on track with a bang, there is no reason why such villas won't fetch a good premium when they are delivered in 2016. “This launch reminded me of the initial Springs/Meadows launches in 2004/05 - the price appreciation witnessed in

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those villas, initially priced at starting Dh588,888, has been remarkable, and that's what we hope from the current launch as well.”

Source: Emirates Business 24/7 Back to Index

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Nakheel wins fight over islands

MONDAY 8 APRIL 2013 Nakheel has won a significant battle in its long-running legal fight to force buyers at its Dubai World island project to go through with their purchases.

According to documents filed online with the Dubai World Tribunal yesterday, the court found in favour of Nakheel, ordering an investor that had agreed to buy the Sao Paolo island on the ambitious island scheme in 2008 to pay Dh127.7 million (US$34.7m) in unpaid instalments on the purchase.

In a judgement handed down on Thursday by Sir Anthony Evans and Sir John Chadwick, the tribunal ordered the British Virgin Islands-based property developer Sao Paolo Development to pay the outstanding cash "to cover outstanding instalments owed on the island and accrued delay fees."

The Dubai-based company Diamond Developers was ordered to pay Nakheel's Jumeirah Village subsidiary Dh10.9m.

The move comes four months after the tribunal dismissed a claim by Sao Paolo Development suing Nakheel's holding company and three of its sister companies for backing out of a deal to transfer the Dh17.4m payments it had made on the island into another Nakheel development.

In its claim, Sao Paolo said that after the global financial downturn hit The World, it had reached a deal with Nakheel to transfer the down payments it had made, along with Dh3.5m of fresh equity to plots in other Nakheel projects, including plots in the developer's Jumeirah Village scheme originally reserved by Diamond Developers.

Although Nakheel had reached similar consolidation agreements on projects, which had been stalled by the property crash, such as the Palm Jebel Ali, and had held initial discussions with Sao Paolo regarding a consolidation, the master developer denied that it had entered into any binding consolidation agreements on The World. Nakheel said The World was not a stalled project but was delivered to the property investors to develop themselves.

In a statement yesterday Nakheel said: "In this case, Sao Paolo Development had sought to renege on its commitment to purchase The World island of Sao Paolo. However, The Dubai World Tribunal held that the reservation contract for The World island of Sao Paolo was enforceable and binding."

Sao Paolo Development could not be reached for comment.

The news follows the Dubai World Tribunal's decision in December to order Penguin Marine Boat Services, which had the exclusive contract to ferry goods and people to the islands to pay a Nakheel subsidiary Dh10m in licensing fees - a payment the ferry company disputed on the grounds that the lack of construction activity on the islands made its operations unfeasible.

Two months ago Dubai Land Department data revealed that Lebanon Island, the first hotel resort to be built in The World project had been sold for Dh35m - a Dh25m loss on the original purchase price by the Indian investor Wakil Admed Azmi.

Meanwhile for Nakheel's sister company Limitless, there was more positive news. The company which, like Nakheel, is being transferred from the Dubai World conglomerate to Dubai Government ownership,

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announced yesterday that it signed tenants to take 50,000 square feet of its The Galleries mixed-use scheme in Jebel Ali during the first three months of the year.

Limitless said that this meant that it had now signed up tenants for a total of 613,500 sq ft of office space - 73 per cent of the office component of the project with petrochemicals companies BASF and DuPont taking a total of 21,500 sq ft, Siemens Middle East taking 7,900 sq ft and International Energy Resources taking 3,900 sq ft during the first three months of the year.

Source: The National Back to Index

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Futuristic tower's future back on

WEDNESDAY 10 APRIL 2013 Construction work on a futuristic glass apartment block in Abu Dhabi could restart after the stalled Sky Gardens Tower was sold by its Lebanese owner.

The Abu Dhabi-based General Housing Company for Investment & Development (GHC), a unit of Beirut- based developer Karam Holdings, said it would restart the tower in the Marina area of Reem Island after it acquired the project from the Lebanon-based Plus Properties.

GHC said that completing the modular apartment block originally announced at Cityscape Dubai in 2007 would save buyers who had already committed to the Sky Gardens Tower.

We are pleased with this acquisition due to our trust in the UAE real estate market, which we estimate will improve in the coming period," said Nabil Karam, the general manager of GHC.

Mr Karam added he wished "to reassure unit purchasers that GHC will proceed expeditiously with the development of the Sky Gardens Tower", and that "a firm timeline will be set and announced to all unit purchasers once all the necessary licences for the development are either obtained or renewed.

According to a company spokeswoman, 157 of the 271 off-plan flats have been sold.

The project was originally proposed by Plus Properties, which was set up by Georges Chehwane, the chairman of Group Plus Media. GPM has a heavy advertising presence in Dubai.

The Reem tower was designed by James Law, a Hong Kong-based architect, through his Cybertecture practice. He said he aimed to create self-sustaining residential zones within each segment of the building.

In 2008 Plus Properties signed a Dh400 million (US$108.9m) contract with Taahud General Contracting for the construction of the scheme and began enabling and piling work. However, construction stalled as the global financial crisis hit.

Reem Island has been one of the areas of Abu Dhabi hardest hit by the global financial crisis. The island has been master planned by the developers Sorouh, Tamouh and Reem Investments to contain at least 22,000 homes as well as offices, shops, schools and other facilities.

However, land was sold to developers and investors, many of whom were hit by the financial crisis and forced to stop building work. Many investors who put down deposits for off-plan flats on the island remain out of pocket.

But with some of the first developments on the island such as Sorouh's Sun & Sky Towers, Tamouh's Marina Square, Dhafir Development's Amaya Towers and Damac's Marina Bay now completed and occupied, property brokers in the capital are reporting signs of rent increases. More projects are starting to come forward on Reem this year.

These include Sorouh's 3,500-apartment Gate Towers in Shams that is set to complete by the end of the third quarter. Chun Wo's 48-apartment Reem Diamond and Luxury Real Estate's Mangrove Placeare scheduled to be finished by the end of this year.

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According to a February report by the property broker Cluttons, rents on Reem Island rose 10 per cent in the second half of last year, while those in older areas of the capital fell by 10 per cent over the same period.

Source: The National Back to Index

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5,000 new flats to push rents down on

Abu Dhabi's Reem Island

SUNDAY 14 APRIL 2013 The number of completed apartments in Sorouh's delayed Shams area of Reem Island is set to nearly quadruple this year as 5,000 new homes come on stream and construction starts on 800 more.

The number of habitable flats in the 579-hectare district will increase from 1,800 at present to 6,800 by the end of the year, according to Sorouh, the master developer.

The Gate project, which was delayed following the financial crisis, is now set to complete at the end of the third quarter.

It will deliver 3,533 flats to the market. And sub developers will finish a further 1,500 apartments this year as five more projects - Reem Diamond, Mangrove Place, Beach Terrace, Al Rifaq Tower and Oceanscape Tower - are all slated to complete this year.

"Developments that commenced three years ago are now coming to completion. Soon there will be handovers. There will be more people coming in and living in Shams and hence there will be a greater generation of a community," said Gurjit Singh, the chief operating officer of Sorouh. He is to become the chief development officer for Abu Dhabi mega developer Aldar Sorouh, which will form after Sorouh merges with Aldar later this year.

Sorouh said that it would initially put up to 2,133 unsold flats in The Gate on to the rental market - something the developer said could push rents in the area lower. Units from the other developments may also come on to the rental market.

"I would think with perhaps 5,000 more units coming onto the market, we have to be quite realistic," Mr Singh said. "Our rentals may have to come down a bit so we are able to compete in the market and so we have a first mover advantage in trying to get the tenants into our developments."

In January Sorouh agreed to sell between 700 and 800 flats in its 3,533-unit The Gate along with infrastructure works to the Abu Dhabi Government for Dh3.2 billion (US$871 million). The developer said it had not sold any flats in the project to private investors since 2009.

Our focus has been on delivery and I think when we get closer to delivery we will see the market coming back for sale," Mr Singh said. "For sales we have to build up a sufficient amount of interest in the property's rentability and then as an investment you will find people will then want to come and buy because you have a rental momentum. It's not an off-plan sales market any more. A tax-free yield is very attractive. Initial yields for a two-bedroom flat in Abu Dhabi ranges between 6 and 7 per cent. That's a margin of 450 basis points over a 10-year bond."

Sorouh said about 25 per cent of the vast Shams project is now either developed or in the process of being developed while infrastructure in the area was complete. A new public beach and the Repton School for 520 students will open by the end of the year.

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The Dh25bn Shams development was intended to house 53,000 people, but construction was hard hit by the financial crisis.

Although Sorouh sold more than 100 plots of land to sub developers before 2009 and work started on more than 10 developments, to date just three have completed - Sorouh's Sun & Sky Towers, Dhafir Development's Amaya Tower and the AJZ Tower.

Many of the others stand vacant and empty, their stalled concrete frames a stark reminder of the millions of dirhams still owed to the off-plan investors.

These include the six towers of the Tameer Towers project, which Sorouh signed an agreement to help to complete in 2008 as part of a Dh6bn agreement with contractors.

"The timeline for Shams has certainly become extended. The developers again have to respond to the market and we are still in a cycle which is still looking for a firm bottom," Mr Singh added.

Source: The National Back to Index

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TASWEEK to present AED 500 million integrated housing project at Cityscape Abu Dhabi 2013

SATURDAY 13 APRIL 2013 TASWEEK Real Estate Development and Marketing, an advisor and solutions provider serving the real estate markets, will present a new integrated residential community project primarily aimed at utmost competitive quality offerings during Cityscape Abu Dhabi 2013 running from April 16 to 18, 2013 at the Abu Dhabi National Exhibition Centre.

Considered as the region's premier real estate investment and development event, this year's Cityscape Abu Dhabi will once again serve as the only annual meeting point for governmental authorities, major investors and developers, consultants, architects, designers and other real estate practitioners to discuss and plan the growth of Abu Dhabi's property market. TASWEEK will capitalize on the international scope and appeal of the event to introduce the new project, which will provide high quality accommodation within an integrated community, complemented by a modern infrastructure and a wide range of facilities and amenities including healthcare, social and educational to be build simultaneously. The initial phases will see the construction of 400 2-, 3-, 4-, and 5-bedroom villas with land areas ranging from 200 to 400 square meters.

After its formal introduction in Cityscape Abu Dhabi, the project's model villas will be put on display sometime in September 2013 and sales will start in October 2013. The first phase of construction to commence on last Qtr of 2013, and the targeted delivery date is in the 4th Qtr of 2015.

"The project we will present meets all dimensions of the current market demand, from the quality of construction and the integrity of the developers involved to high payment flexibility and consideration for the unique needs of families. As a premier event for real estate stakeholders, decision makers and investors, Cityscape Abu Dhabi, provides us with an ideal platform to drum up interest and support for this noteworthy development," said Masood Al Awar, CEO, TASWEEK Real Estate Marketing & Development.

TASWEEK Real Estate Development and Marketing is a one-stop shop for property development that relies on its core competencies of networking and know-how to deliver the right solutions to the right clients. Its comprehensive service portfolio includes Purchase and Sale of Strategic Assets; Asset Management; Joint Ventures and Strategic Alliances; and Marketing Consultancy. TASWEEK's participation in Cityscape Abu Dhabi reflects ongoing efforts to enhance and expand the company's regional and global presence.

Source: Press Release Back to Index

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Serviced residences offer sure-fire formula

THURSDAY 11 APRIL 2013 Want a sure-fire formula for instant marketing success with a real estate launch? Try serviced residences.

The recipe is quite straight-forward: work on a design that veers towards a premium look, opt for a location that is constantly on an investor’s radar and opt for a tie-in with a global partner — it could be a fashion label or a top-of-the-line hospitality brand — who can lend the offering the necessary prestige rub-off. Once this mix is done with, all that is left to do is launch the project and score an instant hit.

A handful of local developers are riding this trend all the way to the bank as high net worth investors — of local domicile or from overseas — park their funds on the recent launches. “Even though there are a few more regulations when building serviced apartments, developers know there is a market for investors looking for higher returns and that’s what serviced apartments offer overall,” said Wakas Khan, vice-president of sales, Aqua Properties. “They most definitely are targeted at overseas investors, but many who bought into the Address brand (from Emaar) as an example and saw how an operation like that works, are now more forthcoming when looking to get into these opportunities.”

The benefits of a serviced residence over a standard residential property add up to quite a few. And many of these are particularly to the liking of an investor with cash to spare.

For one, they offer returns higher than just the annual rental yield. For another, owners of serviced apartments need not worry too much about offering short-term lets, whereas in a residential community this may not be allowed.

And what’s in it for developers putting their considerable weight behind the recent wave of serviced project developments? “Serviced residences with the right branding do outperform normal residential product as the cost to pricing differential is higher,” said Deepak Jain, head of strategic consulting, Mena at Jones Lang LaSalle.

“They have been popular recently but the projects announced so far — most notably by Emaar and Damac — are a small fraction of the overall residential market. The key critical success factor is the location of these projects — Downtown.

“(And) due to limited availability of land in Downtown the supply of this product will remain controlled.”

That is good news for buyers. A report by Knight Frank showed projects in Dubai associated with luxury brands are demanding nearly 60 per cent more value than non-branded projects in the same area.

“Families seek out places to go and places to stay primarily based on the entertainment proposition,” said Ziad El Chaar, managing director of Damac Properties, following the launch of phase two of its $1 billion mixed-use development, Damac Towers by Paramount, which will include more than 1,000 serviced residences.

“Our partnership with one of the most established movie houses in Hollywood has proved a big draw. It offers a unique movie concept for every moment of the stay — this is what makes us different.”

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Other developers would surely have taken note.

S ource: Gulf News Back to Index

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Shifting trends - Dubai tenants now head towards property ownerships, reports Bayut

THURSDAY 11 APRIL 2013 Dubai real estate market is an important attraction for the property investors and residents. Bayut.com observes that the tenants in Dubai are now heading towards property ownerships because of a number of reasons.

Dubai is renowned for its real estate developments. Dubai is a home to various skyscrapers and it sets new benchmarks in the realty market of the world. Property in Dubai is an equally big attraction for the investors and residents. The promising trends of the property market in Dubai also entice investments from various countries of the world.

Bayut.com, which is a renowned property portal of the UAE, observes that the tenants are looking forward to owning the properties in Dubai. Property for rent in Dubai is still an attraction, but growing confidence on Dubai's residential market can now be observed, as tenants seem to be increasingly interested in becoming property owners.

According to an estimate, one in six transactions now account for the ownership of owner-occupied homes. As per Bayut.com, the growth of end-users can be reckoned as an indication of maturity in Dubai real estate market. The increasing number of mortgages further endorses the shift from investor- dominated market to end-user occupied market.

Bayut.com also expects that the creation of new jobs would also fuel up the trend of home ownership in Dubai. Al-Maktoum Airport and Dubai World Central is expected to act as a magnet for a wave of new employees from all over the world. In similitude, the World Expo, if hosted by Dubai would also add a fillip to it.

For 2013, Bayut.com hopes that Emirates Living and Jumeirah Lake Towers would prove as important localities for end-user ownerships. The residential and commercial demand in Dubai is also expected to be upheld by the estimated increase in population i.e. 6% per annum leading to 3.25 million residents by 2020. Rents in Dubai have also experienced hikes, so the residents are likely to deem it benignant to go for a one time investment, instead of spending big chunks of their income on rental properties.

Bayut.com considers these factors as playing significant roles for the shift of tenants from tenancy to self-owned residential properties.

Source: Press Release Back to Index

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Increasing rents in Dubai drive tenants towards lower budget homes

WEDNESDAY 10 APRIL 2013 Increasing rents in Dubai drove tenants towards lower budget homes, resulting in this segment recording the biggest jump in rent across the market over the last six months.

A report by Cluttons, a real estate management and consultancy firm, showed that rents for lower budget homes spiked 12.7 per cent between the third quarter of 2012 and the first quarter of this year compared to the same period last year.

The low-budget segment saw the biggest increase in the rental market compared to 7.7 per cent rent growth for mid-range homes and 6.4 per cent increase in high-end home rents, the report said.

“Rising rental values are driving tenants towards lower budget options, which have struggled over the past two to three years, with even more secondary and tertiary locations enjoying renewed activity,” it said.

Villas

The rental market for villas saw a similar trend: lower-budget villas had the strongest performance with 19.6 per cent increase in rents, while mid-range villas registered an average rent rise of 6.2 per cent and the high-end segment grew 9.7 per cent.

Renewed confidence in the economy driven by tourism and business has pushed up rents and property sale prices further in Dubai, according to Cluttons.

Villa sale prices grew between 8.9 per cent to 20.2 per cent in the last six months. Apartment sales recorded price increases at 10 per cent to 14.6 per cent, the report showed.

Source: Gulf News Back to Index

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Injaz: Saudi real estate sector to see accelerated growth in line with Mortgage Law and Additional Loan Program

WEDNESDAY 10 APRIL 2013 A recent study by Injaz Development Co. has pointed out that the Saudi real estate market is set to witness a sustained increase in demand and strong growth in line with the expected boom in other key sectors such as retail, manufacturing and construction, thanks to the upturn in the Saudi economy in the first half of 2013. The study indicated that these positive indicators are a result of the major development projects being undertaken in vital sectors in order to keep pace with the growing demand. The Saudi construction and building sector is expected to grow by 7.5 per cent during 2013, which in turn will enhance the performance of the real estate sector through the major construction projects being launched.

The real estate sector has been showing strong performance during the past few months, especially in Riyadh and Jeddah, mainly in terms of prices and revenues. The study shows that this robust performance is driven by various emerging factors, which include growing demand, attractive environment for local and regional investors, implementation of the new mortgage law, support offered by the banking sector and investment companies to the local market, in addition to the Additional Loan Program which has been met with widespread acclaim. These factors stress the importance of launching and development of land schemes projects to support the sustained growth, especially in the areas witnessing high demand. Injaz study expects to explore more promising opportunities in key growth areas in the real estate sector, driven by the local, regional and international investors' expansion plans in the Saudi market to utilize the immense potential at all levels.

The study further noted remarkable growth in different fields within the real estate sector with various prices, especially in Riyadh, in line with the strong performance of the Saudi economy which attained positive growth during 2012, achieving a GDP of SAR 2.727 trillion. Injaz revealed that there are important developments taking place in KSA's construction sector, including the real growth of 9.3 per cent witnessed in 2012, according to a report by Business Monitor International, which will contribute to boosting investor confidence in the Kingdom, even as the annual growth rate of the construction sector is expected to remain stable at 5.9 per cent until 2017.

Omar Al-Kadi, CEO and Managing Director, Injaz Development Co., said: "Building and construction activities will have the largest share of growth over the next three years, in line with the announcement of a series of ambitious spending plans aimed at developing new projects and strengthening infrastructure. Further, the implementation of major projects covering building of schools, primary healthcare centres, hospitals, along with transport and municipal projects such as construction of intersections, tunnels, bridges, roads, gardens, parks and waterfronts across KSA will have a significant positive impact on Saudi Arabia's urban landscape."

"The increasing government spending, along with the issuance of the mortgage law and adoption of ambitious development plans will be the most significant factors that will contribute towards

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strengthening the reputation of Saudi Arabia, and Riyadh in particular, as a leading investment destination. We are committed to provide the Saudi market with unique and world-class solutions which are specially designed to meet the growing demand for housing, through developing advanced infrastructure projects to serve the local community and support the real estate boom in KSA," Al-Kadi concluded.

Source: Press Release Back to Index

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Khaleeji Commercial Bank Signs MoU with Ebrahim Abdulaal Group to Offer Property Finance

MONDAY 8 APRIL 2013 Khaleeji Commercial Bank ( KHCB ), one of Bahrain's fast growing Islamic retail banks recently signed a Memorandum of Understanding (MOU) with Major Business Venture Developers Ebrahim Abdulaal Group (EAG) towards enabling finance for the purchase of properties developed at their Marina Reef Real Estate Development project.

The MOU was signed by Deputy General Manager - Commercial Banking of KHCB Mr. Fuad Taqi and Chairman of EAG Mr. Ebrahim Ali Abdulaal.

Through this financing scheme, customers can avail finance solutions to purchase property at Marina Reef, which is a luxurious freehold development, located on the Reef Island, a man-made island built in the heart of Al Manama within the proximity of City Centre as well as the Seef shopping area.

It is a contemporary residential development of 3 low rise buildings of 6 storeys each with 165 apartment units ranging from 92 sq. meters to 272 sq. meters; that offer one, two and three bedroom luxurious sea-front apartments featuring private gardens and balconies which have been designed to create a unique contemporary living space, complemented by high quality features, finishes and landscaping.

Marina Reef is a gated community with secured and landscaped surroundings perfectly equipped with world-class amenities. It is a project under construction and 70% of the constructions works have been completed.

"Our principal objective through this MoU is to offer attractive Property Finance solutions to both Bahraini citizens and expatriates who wish to buy property in the Marina Reef Real Estate Development. Some of the key highlights of our fully Shari'ah compliant Property Finance proposition include a competitive profit rate, finance of up to 80% of the current property value with a maximum limit of BD 400,000 and approval granted within 5 working days of application submission," said Mr. Fuad Taqi, Deputy General Manager - Commercial Banking of KHCB .

Commenting on their collaboration with KHCB on the Marina Reef Development Project, Chairman of EAG, Mr. Ebrahim Ali Abdulaal said, " Khaleeji Commercial Bank's strong commitment to provide optimum Property Finance solutions has motivated us to enter into this partnership. We are confident that their well designed real estate financing schemes and convenient profit rates will greatly benefit our customers who want to purchase property at the Marina Reef Development."

" Ebrahim Abdulaal Group is renowned for its commitment towards innovation and quality and it is a matter of pride for KHCB to work with them to provide customers with affordable finance to purchase property at Marina Reef. Moreover, we believe this will further energize the real estate sector in the kingdom of Bahrain," Mr. Fuad added.

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Headquartered in the kingdom of Bahrain, Khaleeji Commercial Bank BSC is a fast growing Islamic retail bank that endeavours to achieve its vision to be a leading domestic and regional Islamic Bank, providing a comprehensive range of high quality Shari'ah compliant banking and Investment products, services and investment opportunities to their customers and corporate clients.

Source: Press Release Back to Index

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New mall and residences planned in

Sharjah

SUNDAY 7 APRIL 2013 Sharjah government and Majid Al Futtaim (MAF) Group are planning a new shopping mall and residential offering in Sharjah to service the northern emirates, a senior company official told Gulf News.

The mixed use project is in the “initial stage of planning,” said Walid Al Hashimi, chief executive of Sharjah Holding , the joint venture between Sharjah and MAF. No dates for construction have been set as yet.

“Because of the strategic location, the mall will be a regional mall servicing the Northern Emirates residents from as far as Fujairah, Sharjah and all the way to Ras Al Khaimah,” Al Hashimi said.

Sharjah Holding is the owner of the project and MAF Properties is the developer, he said, adding that no contractor has been appointed yet because the project is in early stages.

Sharjah Holding has “just received” the go-ahead from the Ruler of Sharjah and the Crown prince to start the project, he added.

It will be located on Sheikh Mohammed Bin Zayed Road, previously Emirates road, a few kilometres after Sharjah Golf and Shooting club, near Al Rahmanyia neighbourhood.

The project will span a total area of 22 million sq feet. Phase one will see the development of 13 million sq feet for phase one, Al Hashimi said.

Al Hashimi added that it was “too early” to determine the size of investment in the project.

Source: Gulf News Back to Index

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Seven Tides appoints Better Homes as exclusive sales agent for new Palm Jumeirah luxury resort residences

SUNDAY 7 APRIL 2013 Dubai-based real estate developer Seven Tides has announced the appointment of the UAE's largest property realtor, Better Homes , as the exclusive sales agent for Anantara Residences Dubai, Palm Jumeirah.

Anantara, which is renowned for its luxurious, discovery-lead hospitality, has branded and will operate an exclusive collection of 456 condominium apartments occupying a prime beachfront position on the crescent of the Palm Jumeirah. Each residence comes complete with high spec finishes and unique interior design touches, as well as panoramic ocean views framed by the resort's white sand beach, landscaped gardens and the city skyline.

Home-owners also have access to a wide range of hotel facilities and services at the 293-room five-star Anantara Dubai Palm Jumeirah, Resort & Spa, including housekeeping, room service and laundry, concierge service, world-class restaurants and impressive leisure facilities, which include a private beach, three swimmable lagoons, water sports, the Anantara Spa sanctuary, private gymnasium & fitness studio and tennis courts.

"The Anantara Residences will raise the bar for luxury living in Dubai, and we are delighted to bring Better Homes on board as a local real estate operator with the international reach and client list that perfectly matches our luxury positioning, and the clientele that we expect to attract to the resort when it makes its debut this September," said Abdulla Bin Sulayem, CEO, Seven Tides.

Condominium sizes range from 107.5 square metres for a 1 bedroom residence up to Penthouses with their own sunken swimming pools and gardens occupying an impressive 920 square metres. Better Homes is now busy putting the finishing touches to its sales and marketing structure and its ongoing strategy, in preparation for an influx of enquiries once the prices are released and the residences go on open sale later this month.

"One of the biggest selling points for these incredible residences, in addition to the location and freehold status, is the fact that they are not being sold off-plan, but are already complete and ready for homeowners eager to start enjoying their new Palm Jumeirah home," said Ryan Mahoney, CEO, Better Homes.

" Better Homes comes with a 30-year track record in the property arena and its 250-strong team of specialised and well-connected consultants is supported by a highly engaging and easily navigable website, which we are sure will bring the residences to the attention of high net-worth individuals looking to make a sound investment or add to their real estate portfolios," remarked Bin Sulayem.

Seven Tides is no stranger to developing luxury lifestyle environments. Another luxury resort it has developed is the sold out, 644 apartment Oceana Residence, located on the trunk of The Palm Jumeirah. It offers spacious one, two and three-bedroom units with high quality finishes and panoramic views over

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the private gardens and beach. The complex includes a private infinity pool, lazy river and beach, as well as a jogging track, landscaped recreation areas and a gymnasium.

Source: Press Release Back to Index

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JLT, Dubai Marina, Palm prices rise by up to 10% in Q1

THURSDAY 11 APRIL 2013 Dubai property sale prices have jumped more than 10 percent this year in several communities, while rents are rising at a slower pace, new statistics show.

Jumeirah Lakes Towers, Dubai Marina and Palm Jumeirah all showed strong sales growth for apartments, with average advertised sale prices rising by at least AED50,000 ($13,600) in the first three months of the year compared to the last quarter of 2012, according to the website Dubizzle.

Meanwhile, average advertised rents were flat in most areas, although Downtown Dubai and Palm Jumeirah recorded large increases.

Dubizzle spokesperson Ann Boothello said the successful launch of several new developments in Dubai had helped to boost confidence in the buyers’ market, causing sale prices to go up across the board.

“Trusted developers like Emaar properties have launched several new projects in the last six months, most of which received a high response from investors, causing a chain reaction whereby other properties too increased in prices as owners gained confidence that there would be a growing demand for their properties,” Boothello said.

Increased demand from both end-users and investors also had helped to push up prices, she said.

Meanwhile, some wealthier property owners were attempting to take advantage of the high rental yields by moving out of their homes and putting it on the rental market.

“It is clear that rental prices are seeing increases as well, some areas more than others based on demand,” Boothello said.

JLT performed exceptionally well during the first quarter, according to the Dubizzle figures. One- bedroom apartments shot up on average 10 percent to AED880,000, while two-bedroom apartments rose 7 percent to AED1.5m, making the relatively new area one of the most expensive in the emirate for apartments.

One and two-bed apartments in Dubai Marina - the third most expensive area for apartments - rose 9 percent and 7 percent, respectively, to AED1.2m and AED1.92m.

Meanwhile, average rents in the same area remained stable at AED80,000 per year for a one-bed and AED120,000 for a two-bed.

On the Palm Jumeirah, two-bed apartments were more sought after than one-bed, with the average advertised sale price of a two-bed climbing 10 percent to AED2.85m and rents putting on 7 percent to AED160,000.

The average sale price of a one-bed apartment on the Palm surpassed AED2m, up from AED1.5m in Q4 2012. Rents rose 4 percent to AED130,000.

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Downtown Dubai – one of the most expensive areas alongside Palm Jumeirah – struggled to increase the sale price of apartments, while rents rose significantly.

The average sale price of a one-bed apartment rose 3 percent to AED1.6m, while rents did better, putting on 11 percent to an average AED100,000.

Two-bed apartments recorded no change in the average advertised sale price of AED3m – the highest in the emirate – but rents climbed by 7 percent to AED150,000.

The Greens and The Views also showed rising popularity among buyers, with two-bed apartment sale prices rising 9 percent to AED1.7m, making the area the fourth most expensive.

Villas recorded little growth across Dubai, with Springs/Meadows and Arabian Ranches performing the best with 4 percent increases in rental prices.

Rents on Jumeirah Islands also rose 2 percent, while Palm Jumeirah recorded no growth and Jumeirah Park prices fell 2 percent to AED245,000.

Jumeirah Village Circle performed the best for sales, putting on an average 11 percent to take prices to AED2.1m for the first time.

Other notable rises were in Jumeirah Park (up 7 percent to AED4.82m), Palm Jumeirah (up 5 percent to AED11.5m), Jumeirah Island (up 4 percent to AED7.2m) and Arabian Ranches (up 4 percent to AED4.7m).

Dubizzle data is based on the advertised price of more than AED132bn worth of property posted on the website during the first quarter of 2013.

Source: Arabian Business Back to Index

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Luxury Dubai villa prices up 9% since

Q3 2012

WEDNESDAY 10 APRIL 2013 Real estate experts Cluttons has said average prices for high-end villas in Dubai are up by nearly nine percent over the past six months.

Its Q1 market report for Dubai's residential market said positive economic activity driven from tourism and business has led to "fresh property developments and confident property investment throughout the emirates".

Cluttons said luxury villa prices have increased on average by 8.9 percent between Q3 2012 and Q1 2013, while mid-range villas have experienced gains of 14.9 percent over the same period.

The lower budget end of the villa market registered the sharpest rise in values of 20.2 percent, although this was from a lower base than the rest of the villa market, Cluttons added.

The report said this trend has been mirrored in the apartment segment, where both high and mid-range apartments have recorded average price increases of 10 percent each, while lower budget apartment units registered price growth of 14.6 percent over the same period.

Cluttons said the rental market has also experienced substantial growth with high-end villas recording average rental value increases of 9.7 percent since Q3 2012.

The mid-range villa segment registered an average rent rise of 6.2 percent and lower budget villas posted rental value growth of 19.6 percent.

Apartment rental values also increased with the sharpest rise seen at the lower budget end of the market with a rise of 12.7 percent, Cluttons said.

The report said Dubai's strengthening property market was a reflection of the UAE's improving economic performance.

Dubai is expected to be a key driver in the predicted growth of the UAE economy of four percent in 2013.

Steven Morgan, head of Cluttons UAE, said: "We are buoyed by the renewed confidence in Dubai's residential market and increased activity in the sector.

"This has naturally led to price rises - as much as 20 percent in one quarter. In many other developed markets this would be classed as a 'boom' and it would be short sighted not to have some consideration to this.

"We welcome moves from the Central Bank to prevent the development of an overheated market and the likelihood of a bust scenario."

The central bank announced earlier this year a series of loan-to-value cap levels for expatriates and UAE citizens applying for mortgages of 50 percent and 60 percent respectively.

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The bank is now in a period of consultation with the national banks and Cluttons speculates that a 'watered down' version of the legislation may be implemented in coming months.

Source: Arabian Business Back to Index

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Dubai's DPG launches sales at delayed

Mudon project

WEDNESDAY 10 APRIL 2013 Dubai Properties Group, a member of Dubai Holding, has launched sales of 348 family townhouses at its much-delayed Mudon project in the Dubailand district.

DPG announced plans to restart work on phase one of the project in late 2012 in response to market demand for spacious and affordable family homes.

Prices for homes at Mudon, which is located close to Motor City and Arabian Ranches on Al Qudra Road, start from AED2.54m, DPG said in a statement.

DPG added that work on key infrastructure and townhouse units were "already in an advanced construction phase".

The project is due to start handovers from mid-2014.

DPG Group CEO Khalid Al Malik said: "As the market witnesses strong growth indicators and an increasing number of Dubai residents are considering purchasing their own home in the Emirate, this is the ideal time to launch sales at our Mudon community.

"Mudon will meet the growing demand for family focused residential communities in prime locations, and we expect to see strong sales from local as well as regional and international investors."

Show villas at Mudon are open to prospective buyers by appointment, he added.

Last month, the developer announced the appointment of Shapoorji Pallonji Mideast as the principal contractor for its Mudon residential community.

The newly appointed contractor will be responsible for the construction of phase one of the project.

Last September, Dubai Properties Group announced the restart of the Mudon development in Dubailand.

Announced in 2007 at a projected cost of AED40bn ($11bn), Mudon was initially intended as 73m sqft mixed use development including 3,200 villas and town houses, 8,500 apartments, in addition to retail outlets, office space, hotels, restaurants and an 11m sqft golf course.

The first phase of the project, which would have housed approximately 50,000 residents across five Arabic themed ‘zones’, was scheduled for completion in 2009, with full delivery in 2012.

Source: Arabian Business Back to Index

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Limitless says Dubai business park is now 73% full

SUNDAY 7 APRIL 2013 Dubai developer Limitless said on Sunday that its Galleries business park is now nearly three-quarters full after high-profile international firms moved in during the first quarter of 2013.

Chemical giant BASF and global innovative products and materials firm DuPont have recently opened offices, taking more than 2,000 sq m of space between them at the Dubai business park.

Around 57,000 sq m (73 percent) of available commercial space is now occupied at The Galleries, which comprises four A-grade office towers, 6,300 sqm of retail space and a 20,000 sqm landscaped plaza.

Limitless also said that during Q1 International Energy Resources FZCO signed a lease for 370 sq m of office space while Siemens entity Siemens Middle East Ltd took half a floor (734 sq m). Siemens itself already occupies more than 7,000 sq m at The Galleries

Limitless also said it has inked new retail leasing deals with a nursery and more banks. Currently, eight global banks are operating or are soon to open at The Galleries, with more in the pipeline.

Bahaa Abouhatab, head of UAE Projects for Limitless, said: "We are proud to have welcomed our newest tenants during the first quarter of 2013 and look forward to sharing more exciting news from The Galleries throughout the year - and beyond."

The Galleries is an eight-building mixed-use project including four completed, fully operational commercial towers and extensive retail space set in shaded, landscaped grounds that span 20,000 sq m - the size of three international football pitches.

Limitless added that it is currently exploring options for the completion of The Galleries' first residential tower.

Source: Arabian Business Back to Index

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Mena hotels achieve positive start to the year

SATURDAY 13 APRIL 2013 Dubai continues to be the star player in the region, both corporate and leisure demands remain at their peak throughout February.

Hotel occupancy in the region was at a good start in January and February this year.

According to a recent report by Ernst and Young, Dubai hotels saw overall occupancy levels climb to 89 per cent in January. In terms of monthly performance, overall occupancy was at 90 per cent, up 2.4 per cent. Rooms yield ratio (RevPAR) increased by 10.4 per cent, while average room rate was up 7.4 per cent.

“These increases can be attributed to the peak in tourism due to Dubai’s mild winter weather. In addition, the Dubai Shopping Festival occurs in January, which is a major tourism attraction. Dubai also hosts numerous conferences in January…[which] resulted in bringing many businessmen and women to the Emirate,” Yousef Wahbeh, Mena head of transaction-real estate at Ernst and Young said.

Meanwhile, in February, occupancy rose 5.3 per cent to achieve 90.1 per cent, according to the latest HotStats report. RevPAR was up 10.3 per cent to record $301.7, while Average Room Rate (ARR) stood at $334.79- the highest in the region. Also, total revenue per available room (TRevPAR) was 11 per cent to $523.86, boosted by the growth in the city’s food and beverage revenues by 9.3 per cent and 9.5 per cent. Additionally, Gross Operating Profits per Available Room (GOPPAR) increased by 12.7 per cent to $261.08, pushed by controlled payroll costs.

“Dubai continues to be the star player in the region, both corporate and leisure demands remain at their peak throughout the month of February. The city plays host to copious sporting events, conferences, and festivals which have resonated internationally thereby attracting record numbers of travellers yearly,” said Peter Goddard, managing director at TRI Hospitality Consulting in Dubai, which issued the report.

Overall occupancy in Abu Dhabi was at 78 per cent during January, highlighted the Ernst and Young report.

In February, the capital city saw occupancy levels up 18.6 per cent to 80.8 per cent, and average room rates went up 10 per, standing at $203.3, according to the HotStats report. These helped increase RevPAR by 43 per cent to $164.20. Also, conferences in the city boosted TRevPAR by 36.4 per cent to $323.95, raising GOPPAR by 72.9 per cent to $126.21. Additionally, hotel profits were up 72.9 per cent, standing at $126.21 this year from 2012.

Hotels in Al Ain, meanwhile, saw an increase in overall occupancy by 16 per cent in January, while RevPAR was up 13.1 per cent, indicated the Ernst and Young report. These rises are attributed to some of the city’s key attractions, such as Al Ain Zoo and Jebel Hafeet, a mountain.

In Manama, Bahrain, overall monthly occupancy was up 23 per cent in January.

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Meanwhile, hotel occupancy in Saudi Arabia did not see major growth during February, indicated the HotStats report. Hotels in Jeddah saw a 1.3 per cent decline in occupancy to 78.2 per cent, while in Riyadh, occupancy was up 3 per cent to 74.3 per cent. In Kuwait, though, the situation was a little better. Hotels recorded a 6.4 per cent rise in occupancy to 60 per cent.

In Sharm El Shaikh, hotels saw occupancy levels go up 7.7 per cent to 56.8 per cent during the same month, helped by affordable package deals, political stability and good weather conditions. Also, in Cairo, occupancy was up 0.5 per cent to 42.5 per cent.

Source: Gulf News Back to Index

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