News Brief 47 Sunday, 19 November 2017

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News Brief 47 Sunday, 19 November 2017 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION NEWS BRIEF 47 SUNDAY, 19 NOVEMBER 2017 RESEARCH DEPARTMENT DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2017 asteco.com | astecoreports.com ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION REAL ESTATE NEWS UAE / GCC QATAR FACES WORST DECLINE IN GCC REAL ESTATE SECTOR DSI REPORTS DH359M LOSS IN THIRD QUARTER A CHAIN THAT LIBERATES THE AFFORDABILITY ANGLE: A CONSUMER’S VIEW UNION PROPERTIES POSTS LOSS ON SUBSIDIARY CLOSURE RULES TIGHTENED FOR OFF-PLAN PROPERTY BUYERS IN DUBAI 'MY MOULDY APARTMENT IS MAKING ME SICK BUT THE AGENCY IS REFUSING TO CLEAN IT UP' STRUGGLING QATARI DEVELOPER SHED JOBS AMID SLUMP JOB VACANCIES RISE ACROSS MIDDLE EAST DUBAI CLASSIFICATION OF BUILDINGS IN DUBAI’S OLDER AREAS IN FINAL STRETCH THE LANGHAM EXPERIENCE MAKING SENSE OF A SLOW MARKET FROM HUMBLE ABRA STEPS TO SKY-HIGH ICONS A FURTHER 163,000 HOMES IN THE PIPELINE FOR DUBAI DOMESTIC SALES GAINS BOOST EMAAR’S NET PROFIT A PRIMER ON DUBAI RENTAL INDEX CALCULATIONS EMAAR DEVELOPMENT LPO RAISES DH4.8 BILLION IN LARGEST DUBAI LISTING IN THREE YEARS DH30M DUBAI APARTMENT COULD BE BUSINESS BAY'S FINEST EMAAR THIRD QUARTER NET PROFIT SOARS 32%, BEATS ANALYSTS' FORECASTS WASL LAUNCHES 3RD TOWER FOR SALE AT PARK GATE RESIDENCES DAMAC LAUNCHES VILLAS FOR DH2.5 MILLION DUBAI HOSPITALITY SECTOR TO SEE ADDITION OF 29,200 KEYS ABU DHABI HOME HUNTING ON THE YAS ISLAND ALDAR RECORDS DH601M IN NET PROFITS FOR Q3-17 DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN | KSA IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management | 2017 | asteco.com Page 2 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION REAL ESTATE NEWS ALDAR'S Q3 NET PROFIT DECLINES 20% YEAR-ON-YEAR DUE TO ONE-OFF LAND SALES LAST YEAR ALDAR PROPERTIES ANNOUNCES BOARD AND MANAGEMENT CHANGES NORTHERN EMIRATES SHARJAH PROJECT BEATS ITS OWN SALES RECORD ALJADA SELLS RECORD HOMES IN ONE DAY SHARJAH’S EMIRATES INDUSTRIAL CITY 75% LEASED OUT INTERNATIONAL FOUR IN 10 LONDON HOMESELLERS CUTTING PRICES IN TOUGH MARKET LONDON’S REALTY MARKET KEEPS POLITICS AT BAY PROFOUND CHANGES COMING TO THE GLOBAL RETAIL PROPERTY SECTOR HOME BUILDER CONFIDENCE RISES TO 8 MONTH HIGH IN NOVEMBER DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN DEFINING LANDSCAPES SINCE 1985 © Asteco Property Management, 2017 asteco.com | astecoreports.com Page 3 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION QATAR FACES WORST DECLINE IN GCC REAL ESTATE SECTOR Wednesday, November 15, 2017 Difficult economic environment is expected to weigh on the prospects of the real estate sector across the GCC, especially Qatar as it faces continuing trade and economic sanctions. ―We expect that difficult operating conditions in the region will continue to hurt the real estate sector for the next 12 months in the absence of positive triggers,‖ said Sapna Jagtiani, an analyst at S&P. Qatar‘s real estate market is suffering as a result of the blockade by its neighbours. The country experienced a decline in its population in June-August, according to Qatar‘s Ministry of Development Planning and Statistics, but saw a recovery in September to the same levels as before the blockade. Incentives, such as rent-free periods, have become more common, while quoted rents for vacant units have fallen in recent months. According to DTZ, residential rental rates in Qatar declined 10 per cent to 20 per cent year over year to September. The severing of trade and transport ties has led to a fall in tourist and business travellers to Qatar. ―A weakness in general sentiment has also prevailed over retailers as consumer spending has dropped and may further decline as a result of lower tourist arrivals, especially from Saudi Arabia. Therefore, we expect all real estate segments in Qatar to get hit,‖ said Jagtiani. Supply coming to the market Despite the region political risks, real estate ratings in the UAE have largely remained stable. UAE residential property prices and rents have declined by 5 per cent to 10 per cent during the year. In Dubai, the biggest threat continues to be potential supply coming to market in the next two to three years, which would likely not only soften sale prices but also dampen rental yields. But this hardly affects rated developers such as Emaar Properties PJSC and Damac Real Estate Development Ltd, given current strong margins and low leverage. The retail segment in Dubai also continues to see downward pressure on rents spurred by new supply and the growing threat from e-commerce. While GCC online sales account for only a fraction of total sales, e-commerce penetration has increased. Online retailing in the GCC is forecast to grow to $20 billion (Dh73.4 billion) by 2020 from $5.3 billion in 2015, according to A.T. Kearney. Source: Gulf News Back to Index DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN DEFINING LANDSCAPES SINCE 1985 © Asteco Property Management, 2017 asteco.com | astecoreports.com Page 4 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION DSI REPORTS DH359M LOSS IN THIRD QUARTER Wednesday, November 15, 2017 Drake & Scull International (DSI) reported a loss of Dh359 million for the third quarter due to lack of liquidity before its recapitalisation, which has now been completed. Engineering and construction services company‘s revenues fell to Dh590.32 million compared to Dh868.56 million a year ago. ―We expect our financial performance to normalise in the fiscal year 2018 in line with our continued pursuit of restructuring and reinforcing our operations. Our primary objective is to strengthen our financial position, to accelerate projects delivery and to improve the operational performance across all sectors,‖ Rabih Abou Diwan, investor relations director of DSI, said in a statement. He said the ongoing projects portfolio in the UAE remains robust and continues to be the main revenue driver, with the debt restructuring positively progressing in the local market. The debt restructuring effort is expected to be concluded across key markets in the fourth quarter of 2017 enabling the group to secure its funding requirements and to move forward with its turnaround plan. Furthermore, the company revealed that the UAE project tenders in advance stages of negotiations are expected to materialise in the fourth quarter, which ends on December 31. The company‘s quarterly financial results were released as the new leadership team continues to review projects and identify pertinent risks to mitigate its exposure on the operating and financial performance of the Group. The move represents another essential step in DSI‘s operational restructuring, which will set the stage for improved and consistent performance in the coming quarters. ―For the fourth quarter of 2017, we are confident that our performance will improve as we steam ahead with our restructuring programme. We reassure our shareholders that we are on the right track to restore our leadership position in the mechanical, electrical, and plumbing (MEP) sector as the new board of directors remains fully committed to stabilising the business and reinstating our trajectory for profitability and growth,‖ Diwan said. Source: Gulf News Back to Index DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN DEFINING LANDSCAPES SINCE 1985 © Asteco Property Management, 2017 asteco.com | astecoreports.com Page 5 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION A CHAIN THAT LIBERATES Wednesday, November 15, 2017 Ever thought how a couple of decades ago communicating with people living abroad was so difficult? Letters, post boxes, stamps, envelopes and waiting for the post man? All this vanished with the advent of email — you just have to click the ―send‖ button. Now think about renting an apartment. You sign a contract with the landlord, register it on Ejari, submit documents to get water and electricity and give postdated cheques. What if all these can be done in a way that is as easy as pressing the send button? Dubai is now working on a solution to achieve just that and it‘s all part of the Dubai Blockchain Strategy, which was launched last year by Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Dubai Crown Prince. The Dubai Future Foundation has established the Global Blockchain Council to ―explore, discuss current and future applications, and organise transactions through the Blockchain platform‖. The way blockchain works is simple: a central register is created where every piece of land will get its own identifier. This ledger will then track this asset over its life into perpetuity. Because of the nature of the ledger, all events that happen during the life of the asset will get reflected in the various parts of the ledger. Examples of such events are when the land is bought or sold, when tax is paid on the land, when the land is valued, when the land is rented out, when the land is bequeathed, when the land is mortgaged or when services are provided to the land (construction, water, electricity etc). Each time, the current status of the land is reflected in this ledger. What about recent issues regarding cybersecurity? This is an extremely important question. The nature of the technology is such that the ledger is highly encrypted with a methodology so unique that it would take an immense amount of computing power that normal computers cannot accomplish even in 100 years to break down the code to be able to get any sense of the ledger. Also, even if the code was decrypted, then the ledger can only be read, not changed. Thousands of copies of the ledger are stored worldwide, each using different codes and changing one ledger copy will not be enough — at least 51 per cent of the ledger copies need to be changed to fudge data.
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