News Brief 47 Sunday, 19 November 2017

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NEWS BRIEF 47 SUNDAY, 19 NOVEMBER 2017

RESEARCH DEPARTMENT

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

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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

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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

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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

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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. This is beyond the scope of most governments even. Also, since this is a chain any change in one block will cause all subsequent blocks to become unverified. So the challenge to hackers would be to change all events that have recorded from a previous point in time in 51 per cent of ledgers across the world in a small amount of gap before reconciliation takes place again. So why was this technology not implemented earlier if it is so great? The technology has only become viable in recent times when a lot of emphasis and adoption of cloud computing has taken place. What does it mean for buyers of real estate? Buyers of real estate can rest assured that once they are listed as the owner of the property on the blockchain ledger, then no one can challenge their ownership of the real estate. Moreover, if they are buying the real estate from an entity that is listed as the owner of the property on the blockchain ledger, then the seller is genuine. Additionally, the technology is such that it is impossible for the seller to fraudulently sell the same piece of property to two buyers. Thus buyers will no longer need to be present physically to conclude the deal or get the title paper. What does it mean for banks who give out mortgages against real estate? Banks can look up the status of the property in the blockchain ledger – whether it has already been mortgaged or not, whether this is the first lien or second lien, how is the ownership structure etc. Once this has been established, they can place a lien on the property ensuring security of collateral. The game changing aspect of this technologyis that banks worldwide would be able to finance a property in Dubai without necessarily having a local office. How does it help property owners? Property owners will face minimal paperwork or inconvenience if the property is listed on the blockchain ledger. Title deeds will no longer require safekeeping. If they wish to mortgage or release a mortgage, all the process will be

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

completely online as there is no more paper titles, if they wish to gift or bequeath the property to their spouse or children, the transfers can also be done online directly through the registry — making disputes a thing of the past.

How does it help property tenants? Everything that a tenant does that is associated with the rental property would be seamless and paperless. This includes the contract with the landlord, the postdated cheques, getting a water connection etc. Also, any time a tenant needs to prove address (for registration of a company, sponsoring family or housemaids, getting health cards etc.), this step will be eliminated as the details are already linked online and are seamless. How does this help the government? The government would have a registry that would give them a solid view of ownership. This would help with tax collection (sales tax, wealth tax, inheritance tax etc). It also gives the government solid data on the land prices to build real estate indices. It would help urban planning as the government would automatically get an idea of population density and associated demand for services — think ensuring enough local schools and hospitals, waste planning, resource planning etc. Given the nature of the technology, more and more applications are being researched and implemented. The impact of the ideas are immense, and it‘s only a question of time before life will be different again. Source: Gulf News Back to Index

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THE AFFORDABILITY ANGLE: A CONSUMER‘S VIEW Wednesday, November 15, 2017 Globally, decision makers usually view affordable housing development from a developer‘s viewpoint. As the accepted thinking goes, if developers are sufficiently incentivised then they will build good-quality affordable housing projects. Sometimes this includes the government zoning and land rights approach among other well-known financing interventions. However, as we dive into the human approach, affordability resides at the heart of the monthly income management for average households. Let us look at four household income bands in the UAE and connect that to affordability of a property purchase. Everyone will agree that it is fair to look at the primary household income as a key driver of affordability-related housing discussions. In our analysis we have taken household income brackets starting from Dh10,000 to Dh35,000. We have analysed the value of property each income bracket could afford to purchase. This takes in certain assumptions, most importantly that affordability implies 30 per cent of total household income being paid towards housing. Other important caveats are that the analysis is based on 3.99 per cent interest rate and 25 per cent down payment or 75 per cent loan-to-value ratio. These will vary based on mortgage lender and one‘s personal credit history. The tenure of loan repayment is another major area of debate for affordability. A higher tenure means lower monthly repayment, but also a longer wait to fully own the property. Lower tenures result in higher repayment each month, however, it decreases the total interest paid to the lender and you will own your property earlier. Our approach is a conservative one, given this analysis relates to middle-income households, having taken a 240-month, long-term exposure on the tenure. It is also important to be aware that the down payment requirement varies as per UAE Central Bank regulations. And the Dubai Land Department fees and agency commissions are separate amounts for the actual core property value discussion. However, we have included these to highlight the minimum upfront amount required for a household to enter the property ladder. We observe that even at the lowest starting point of Dh10,000, should a loan be made available, the household can look at a maximum property value of Dh650,000. This will require more than Dh200,000 to be able to enter the transaction. In the highest band of Dh35,000 per month income bracket, the household can at best look at a house priced at Dh2.3 million. Conservatively, they will be paying up to Dh750,000 in interest to the bank over a 20-year period. They would ideally need to have saved an equal amount to invest in their first property, including government fees and commissions. So, even at the highest band, which is a bit higher than most affordable discussions will allow, we still see that the maximum they would be able to afford is a relatively modest apartment in only specific communities. Overlaying this information on data from Property Monitor we can safely say that 14 per cent of properties transacted in Dubai this year are not within reach of anyone earning below Dh35,000. In the lowest band of Dh10,000, the household would be unable to participate on 74 per cent of properties transacted in Dubai. This is a significant part of the market that is currently not in reach of a majority of the population that earns modest incomes. Perhaps the best solution for middle-income earners to enter the market is to crowdfund real estate assets. More on that in another article. Source: Gulf News Back to Index

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UNION PROPERTIES POSTS LOSS ON SUBSIDIARY CLOSURE Tuesday, November 14, 2017 The winding up of its contracting subsidiary (Thermo LLC) dented revenues and profitability at Union Properties in the third quarter, which recorded revenues of Dh116 million and a net loss of Dh32 million. The corresponding 2016 numbers were Dh253 million and a net profit of Dh45 million. The results come just a month after the developer booked significant provisions of Dh2.8 billion. This then led to losses of Dh2.3 billion for the three months to end June 30. From that perspective, the Dh32 million net loss for the July to September period would come as some relief. In the interim, Union Properties also set up dedicated divisions to manage its hospitality and retail interests. ―The third quarter of 2017 has seen Union Properties continue to take the steps required to achieve sustained growth over the long-term,‖ said Nasser Butti Omair Bin Yousef, who took over as chairman earlier this year. ―With our operations now refocused around the company‘s new strategic direction, we are moving forward as a stronger and more efficient company with the capabilities to seize new opportunities both in the UAE and internationally.‖ In Dubai, the primary focus will be to build up MotorCity to its full potential. A new masterplan for MotorCity projects a completed value of more than Dh8 billion. It will feature 44 high- and low-rise buildings, more than 150 villas, and other mixed-use facilities. The third quarter saw Union Properties launch two fully-owned subsidiaries — Union Malls and Al Etihad Hotel Management. Union Malls provides retail and leisure options in UP promoted developments. Its first mall will be The Central, a 100,000 square metre complex in MotorCity spread over four levels. Al Etihad Hotel Management will develop and manage luxury hotels and furnished residences. Its portfolio will include 3,000 serviced apartments and 3,500 hotel rooms throughout MotorCity, before expanding its business elsewhere in Dubai. It has launched operations with three projects in MotorCity. Source: Gulf News Back to Index

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RULES TIGHTENED FOR OFF-PLAN PROPERTY BUYERS IN DUBAI Sunday, November 12, 2017 Property buyers in Dubai who are in breach of their sales contracts on off-plan projects will find the going tough from now on. An update has been issued on the law related to ―interim property registration‖ by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. This is Law No. (19) of 2017 partially amending Law No. (13) of 2008 on interim property registration in Dubai. The new version clearly sets out the procedures to be applied in cases of breaches of sale contracts by a buyer. In such an event, the developer must notify the Dubai Land Department that such a breach has taken place. Once the notification is received, the Land Department can give a 30-day notice to the property buyer. (The notice must be dated and given in writing and delivered to the purchaser directly by registered mail, email or any other method specified by the Land Department.) If the developer and buyer subsequently reach an amicable settlement, it must be added to the sales contract and signed by both. But if the buyer fails to fulfil contractual obligations — or a settlement cannot be reached — the Land Department may issue an official document stating that the developer has fulfilled his legal obligations, specifying the percentage of completion of the property. This is where the new Law sets clear guidelines on what a developer and property buyer can expect. * If the percentage of completion on the off-plan project is over 80 per cent, the developer can ask the purchaser to abide by the terms of the sale contract and confiscate the paid amount. He can call on the buyer to make the rest of the payment specified in the contract or otherwise request the Land Department to auction the property to collect the dues. The buyer is also obligated to pay any expenses arising from the auction. The developer can make void the sale contract, retain up to 40 per cent of the sale contract‘s value and return the remaining amount to the buyer within a year of the date of contract cancellation. Or within 60 days of the date of re-selling the property, whichever is earlier. * If the percentage of completion on the off-plan project is between 60 and 80 per cent, the developer may void the sale contract solely, retain not more than 40 per cent of the sale contract‘s value and return the remaining amount to the purchaser within a year of the date of contract cancellation. Or within 60 days of the date of re-selling the property, whichever is earlier. * If the percentage of completion is less than 60 per cent, the developer may void the sale contract, retain up to 25 per cent of the sale contract‘s value and return the remaining within one year of the date of contract cancellation. Or within 60 days of the date of re-selling the property, whichever is earlier. * If the developer did not initiate the work in the property for reasons beyond his control and without negligence, the developer may void the sale contract, but deduct not more than 30 per cent of the paid money and return the remaining within 60 days of the date of re-selling the property, whichever is earlier. And if the project is cancelled by a resolution from Rera (Real Estate Regulatory Agency), the developer must fully refund the buyer. This is as per Law No. (8) of 2007 concerning escrow accounts for real estate development in Dubai. With the new Law, the procedures prescribed in Article (11) of Law No. (13) of 2008 are not applicable to land sale contracts. Such a sale remains subject to provisions stated in the sale contract. Source: Gulf News Back to Index

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'MY MOULDY APARTMENT IS MAKING ME SICK BUT THE AGENCY IS REFUSING TO CLEAN IT UP' Wednesday, November 15, 2017 I have been renting a property in Dubai for over three years and every year the mould has increased and damaged items in all the rooms. This includes a bed, sofa, cabinets, pictures - the mould is everywhere. I have been asking the landlord to rectify and eventually the owner told the estate agent to get a specialist in. He said that if the advice was to remove the mould and install a dehumidifier, then he would pay, but he also said he will not renew my tenancy and will give me 90 days' notice. This means I have to leave at the end of my tenancy in May 2018. My first question: is that legal? With regards to the mould infestation, the analysis carried out by the remedial team makes it clear that it is not caused by anything I am doing. The apartment is very clean and well cared for, and I have already destroyed many of my shoes and furniture items that were infested with mould. The root cause of the problem is the high humidity in the apartment, especially in the bedroom. According to the maintenance company, humidity above 60 per cent will lead to mould developing on vulnerable materials (leather, wood, cloth, etc), and this is what is happening here. The humidity in the sitting room at ‗table‘ level was over 64 per cent, and in the bedroom was almost 70 per cent, they said. They also checked the humidity of the air coming directly from the AC Supply vent and that was at 88.5 per cent, so the AC is actually supplying the humidity that is causing the problem in the apartment. The maintenance company recommends that the owner takes this up with the building management, as he doubts mine will be the only apartment affected. To fix the problem, they will have to fog everything in the apartment and clean the AC ducts, which are full of mould spores, discard any affected items and varnish vulnerable surfaces. The company also recommends running a freestanding dehumidifier. Since receiving the quote, the estate agent has advised me that they will not pay for the work and that I should leave the apartment for the sake of my health. Last week I was bedridden with tonsillitis; I cannot sleep in the bedroom as I wake up choking and with puffy eyes due to allergic reaction. To move I will need to find quite a bit of money, I will need to fog most of my clothing and furniture as the spores would transfer to another place, find agency fee money, find a minimum of three months' rent, pay for removals and replace a lot of my belongings. Also, I pay monthly with this landlord so finding another that accepts this has been hard. I don't want to move just yet but I need to get better as I suffer from the autoimmune condition SLE Lupus. Do you think I could take my case to the Real Estate Regulatory Agency (Rera)? And what sort of outcome do you think I might get? SS, Dubai I realise you are stuck at the moment but I stress that your health is more important than anything else. That said, I do understand your situation and to vacate or leave right now is not really an option for you. Remember though that fighting for your rights will also take time, effort and some costs. Your landlord cannot unilaterally decide that he will not renew the contract with you - this is illegal. If you wish to stay, he has to renew your contract at the correct rent and all subject to Law 33 of 2008. He also has a responsibility to you, to maintain the property in a habitable condition. Cleaning the AC ducts would therefore be his responsibility, especially as the report you included states that the humidity stems from the AC supply vent. The AC ducts should be cleaned at least once a year, better still, once every six months. The landlord cannot just walk away from his responsibility, so he should speak with the building management to ascertain what they are doing about this problem. This leads me to your last question. My advice would be to initially speak with Rera but I suspect you will not get the satisfactory answer you seek.

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Unfortunately the only other way to force your landlord into action would be to file a case at the rental dispute settlement committee. Like Rera, this department is also located in the Land Department building in Deira.

To file a case will cost you 3.5 per cent of the rental amount. You will also need to translate all your documents into Arabic but the committee will advise the landlord of his obligations. Source: The National Back to Index

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STRUGGLING QATARI DEVELOPER SHED JOBS AMID SLUMP Tuesday, November 14, 2017 Ezdan Holding Group reduced almost 15 per cent of its workforce as Qatar‘s largest publicly traded real estate developer restructures its operations, according to two people familiar with the situation. The 220 job cuts mostly comprised maintenance staff and included some management, said the people, who asked not to be identified. An Ezdan spokesman and another official at the company did not respond to requests for comment. Ezdan held the second-largest weighting in the Qatari stock index earlier this year until it was dropped after shareholders approved a plan on May 24 to convert the business to a private company. The shares have fallen 49 per cent since. Valued at 21.2 billion Qatari riyals (Dh20.2bn), Ezdan is controlled by its founder, a Qatari royal, and related entities, and only has about 6 per cent of its shares available for trading by outside investors. S&P Global Ratings on Monday cut its long-term corporate credit rating on Ezdan to junk, lowering it to BB from BBB minus, with a negative outlook. It cited a weakening of the company‘s financial-risk profile because of a deterioration in the country‘s operating environment as a result of the Saudi Arabian-led embargo against Qatar. Source: The National Back to Index

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JOB VACANCIES RISE ACROSS MIDDLE EAST Friday, November 17, 2017 Job vacancies for professionals across the Middle East increased by 5.5 per cent between the second and third quarter of 2017, the latest Robert Walters Middle East Jobs Index has revealed. Jobs growth was strongest in the legal and banking and financial services sector at 17 per cent and 14 per cent, respectively. On the other hand, the accounting and finance sectors saw a decline of five per cent in advertised jobs for professionals. The number of advertised job vacancies for professionals, across accountancy and finance, banking and financial services, legal, sales and marketing, in the UAE rose by six per cent in the third quarter of 2017 compared to the second quarter of 2017. The number of advertised job vacancies for professionals, across accountancy and finance, banking and financial services, legal, sales and marketing in Saudi Arabia rose by five per cent in the third quarter compared to the second quarter, despite overall decreases of 32 per cent year-on-year. "Market conditions remain tough in the professional space across the Middle East. Nevertheless, we have seen a significant increase in roles post summer and we are optimistic that we will see a stronger fourth quarter," said Jason Grundy, country head at Robert Walters Middle East. "It is positive to see growth in the senior professional market quarter on quarter. However, this is from a low base after a particularly quiet summer across the Middle East." "The year-on-year is so acute because the third quarter of 2016 was the high point in terms of jobs advertised in the recent short term cycle," Grundy added. "Post-summer, the market has picked up significantly and we expect strong results in the fourth quarter of 2017. The Saudi job numbers have accelerated overall quicker than the UAE. We believe this is because of the recent announcements in line with the Saudi Vision 2030. The UAE job postings have also increased and the expansion of the non-oil sector appears to be driving this trend." Grundy also noted that both the private practice and in-house markets were unexpectedly quiet over the summer. The bigger private practice firms, with a broad regional reach, have benefited from an up tick in deals and projects getting the green light or coming back online. Finance teams have also benefited from increased activity on projects. "Positive feel in the market at the moment and Q4 job numbers are expected to be the best for the year," he said. Source: Khaleej Times Back to Index

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CLASSIFICATION OF BUILDINGS IN DUBAI‘S OLDER AREAS IN FINAL STRETCH Wednesday, November 15, 2017 Dubai‘s ambitious building classification project across the city‘s older neighbourhoods has gone past the 90 per cent mark, according to a top official. The survey was launched in 2015 and due for completion by year-end. ‗The aim is to update the plot and building details as per the actual site conditions,‖ said Mohammad Al Dah, Technical Affairs Director at Dubai Land Department. ―The main issue is that, historically, the Land Department only recorded land ownership details in non-freehold areas. ―That was because the local and GCC owners are not allowed to sell off individual units. ―We have no problem with the ownership data (available with the Land Department). We want to gather various data including the number of units (for use as shops, flats or offices, etc) per plot of land. ―Also, we are documenting various useful data that may be used by others such as sustainability features and how well a building is managed. We also document, for example, if the building overlooks the sea.‖ ―Some very old buildings have been very-well maintained and that makes it hard for us to estimate its age. We expect to finish Phase 1 of collecting basic building data by the end of 2017.‖ Some of Dubai‘s older areas are going through a massive transformation, and not just in terms of additional roadways or flyovers. The property known to all as the ―Sana Building‖ and located opposite Zabeel Park is making way for a twin-tower. In fact, much of the area around Zabeel Park and World Trade Centre are seeing a wave of new projects, including the ―One Za‘abeel‖ twin tower development and to feature the world‘s largest cantilever. On the website of Dubai Government owned master-developer Ithra, which is building One Za‘abeel, there is a mention of the ―Deira Enrichment Project. It aims to create apartment blocks overlooking The Creek and will also oversee an extension of the Deira Souq. Amid all of the new building activity, what of the older structures? Once the classification works are done, will those landlords have to start retrofitting and upgrading those older properties? ―Not at this moment,‖ said Al Dah, who is also associated with the Institution of Structural Engineers. ―In general, it‘s hard to retrofit or upgrade an existing building for various reasons such as a lack of existing drawings, the lack of original building materials, change of use, change in legislation, etc. ―However, this is a worthwhile exercise for some buildings in very central locations, where upgrading the building will preserve its monetary value as well as historical value.‖ This is phase one of the survey. If so, what will be the scope of any future extensions to the programme? ―A phase two if it happens will look at linking the Ejari with the Building Classification Survey, issuing ―star‖ ratings for buildings and linking them to a rental calculator, and/or preparing in-depth reports about the Dubai market.‖ Debate on building retrofits The Institution of Structural Engineers‘ (IStructE) UAE grouping held a debate on building retrofits. It focused on the merits — or otherwise — of renovating versus demolishing older buildings in the Gulf. Eng. Rashad Bukhash, Chairman of UAE Architectural Heritage Society, chaired the panel. ―As structural engineers, we are sad when landmark buildings get demolished such as the Hard Rock Café or Al Nasr Cinema in Dubai,‖ said Mohammad Al Dah, Chairman of the UAE Regional Group of IStructE. ―This is because the structure of these buildings is usually still strong, but they become unfeasible economically and a change of use is merited.‖ Source: Gulf News Back to Index

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THE LANGHAM EXPERIENCE Wednesday, November 15, 2017 In 1865 The Langham, London was Europe‘s first grand hotel – historic, traditional, quintessentially British, the epitome of luxury for its time. It had ―everything a man, woman or child could desire under one roof‖. Now fast forward to 21st- century Dubai, and envisage that same brand in this modern, contemporary city. Does it fit? It most definitely does, say brand representatives and developers. ―Dubai is one of the great tourist destinations of the world, and everyone wants to come here. It‘s a hub and it‘s truly global,‖ says Andrew Jessop, senior vice-president of worldwide development at Langham Hospitality Group. ―It‘s said if you can make it in the New York City market you can make it anywhere, and I think the same can be said of the Dubai market too now.‖ With Dubai such an important international hub, he explains, it‘s only natural a brand such as The Langham would want to establish a presence here. Following its launch, Langham Downtown Dubai is on track to be completed in the third quarter of 2020. Mahdi Amjad, executive chairman and CEO of developer Omniyat, says the brand was the ideal partner and both parties are delighted to finally be bringing The Langham to the Middle East. ―The Langham is a very popular brand with Middle Eastern clientele, and we at Omniyat like to bring something different to the market, building on our commitment to long-term relationships with brands,‖ he explains. ―We feel we have a unique location for The Langham Downtown Dubai in the heart of the Marasi development on the banks of the Dubai Canal.‖ With The Langham brand known worldwide, does it seem something of an anomaly that the planned Langham Dubai is such a modern, contemporary building? Not at all, says Amjad, it‘s simply testament to the brand‘s commitment to innovation. ―What we have designed and planned for Dubai is an evolution of the brand,‖ he explains. ―It‘s the same principles, the same touchpoints, the same positioning of luxury, but it‘s a modern interpretation of the Langham tradition. We‘re interpreting the rich history of the brand into a contemporary development.‖ Jessop agrees. ―The Langham Dubai is going to be a modern classic, and we have to remember some classic elements have moved on,‖ he says. ―We will be bringing years of service and tradition, but combining it with our attention to innovation. And we‘re very subtle, there‘s nothing aggressive about this at all. The Langham Dubai will most definitely have the spirit of the Langham brand, but the 21st-century interpretation of the brand is also influenced by Omniyat, the developer.‖ Back in the day, The Langham made history by being the first hotel of its time to feature hydraulic lifts and both hot and cold running water in all its rooms. Will The Langham Dubai be bringing new superlatives, and where will it fit in a market full of luxury hotels? Amjad and Jessop believe there is most definitely a space, although again, the brand will not be relying on gimmicks. ―The Langham Dubai will have its own position within Dubai‘s hospitality market,‖ says Amjad. ―It‘s not an easy task to bring in new brands that truly contribute to the city, but The Langham has a unique proposition for both UAE residents and international visitors. The Langham is quite unique as a brand, in that is the perfect blend of East and West together, and ideal for the Dubai market.‖ Jessop says the brand will be reliant on one of its four pillars of success, its firm commitment to superior service, in order to ensure it is well-received in Dubai. ―Of course, The Langham Dubai will ensure guests have the best possible service experience with us,‖ he explains. ―The spirit of great service never goes out of fashion.‖ Source: Gulf News Back to Index

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MAKING SENSE OF A SLOW MARKET Tuesday, November 7, 2017 As sales prices and rents continued to feel a downward pressure in the third quarter, the bright spot in an otherwise languid market has been the increasing sales activity in the primary segment, with off-plan projects still managing to attract good prospects. ―Strong demand was felt during Cityscape Global [in September] where developers were allowed to transact on the stands for the first time in many years,‖ says Mario Volpi, chief sales officer of Kensington Exclusive Properties. ―This proved very popular as many phases of new launches sold out.‖ As homebuyers and tenants taking advantage of the slow market drive the rise in transactions, John Stevens, managing director of Asteco, says the market remained flat, with ―some areas showing more pronounced drops particularly year- on-year‖. The price softening was far more pronounced in the residential rent segment as both apartment and villa communities in some areas recorded a double-digit decline year-on-year. Apartment rents over the quarter fell 4 per cent, while year-on-year rates showed a marked drop of 12 per cent, according to Asteco. Villa rental rates echoed this, with a 3 per cent quarter-on-quarter and a 10 per cent year-on-year drop. On the sales front, although the price movement in both the apartment and villa segments was stable on quarter-on-quarter basis, prices plunged by 4 per cent and 3 per cent respectively in yearly terms. Stevens says the most challenging asset class this year has been commercial real estate. ―Office sales prices and rental rates remained flat in the third quarter compared with the second quarter, with a year-on-year decline of 6 per cent for sales and a marginal drop of 2 per cent for rentals,‖ says Stevens. Hit by weak market sentiment due to internal and external factors, including low oil price, regional uncertainty and subdued global economic outlook, Dubai‘s property market was further bogged down by new supply entering the market over the last nine months. Volpi says sales and rental prices will further soften due to the wide array of choices available. ―We will not see a return to equilibrium of the market for another six to 12 months,‖ he says. Retail rents have also softened due to higher vacancy rates, says Volpi, as landlords prefer to negotiate with existing tenants. In light of these challenges, developers are responding by offering more attractive and flexible terms to both tenants and purchasers. ―This strategy is aimed at maintaining headline rents and prices, while at the same time offering reductions in the real price and rents,‖ says Craig Plumb, head of research at JLL Middle East and North Africa (Mena). As the market continues to favour tenants and buyers, the gap between asking prices and effective prices is likely to widen, says Plumb. Residential Dubai Marina posted the highest decline in rental rates at 19 per cent in the third quarter compared with the same period last year, followed by Downtown Dubai (18 per cent), Dubai Sports City (16 per cent) and Bur Dubai (16 per cent), according to Asteco. In the villa segment, The Springs showed the highest decline in rental rates at 18 per cent, followed by Arabian Ranches (15 per cent), the Palm Jumeirah (15 per cent), Dubai Sports City (14 per cent) and Jumeirah Village (14 per cent). However, sales prices within the apartment segment varied significantly from community to community. ―Dubai Silicon Oasis declined 9 per cent to Dh829 per square foot, whereas The Greens witnessed a growth of 13 per cent to Dh1,352 per square foot, by far the best-performing area in the third quarter,‖ says Ivana Gazivoda Vucinic, head of advisory and research at Chestertons Mena. Dubai Marina also witnessed an increase of 2 per cent in average sales prices to Dh1,470 per square foot, according to Chestertons. Business Bay saw a 1 per cent increase in prices, rounding out the areas witnessing positive results.

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―Villa sales prices have been more resilient due to the higher level of corrections during the previous quarters,‖ says Vucinic. ―The Meadows and The Springs were the worst-affected areas, both recording a 7 per cent decline.‖

The increasing new supply into the market has put further pressure on the already-weakening sales and rental prices, which, if industry experts are to be believed, are heading for further correction in the coming quarters. ―We expect further correction in both the villa and apartment markets for at least the next three to four quarters,‖ says Vucinic. According to Asteco, more than 10,200 apartments were delivered in the first three quarters of the year and a further 3,500 units are due for completion before the end of the year. Last year, the total supply was only 8,750 apartments. Office While average office rents declined by 3 per cent year-on-year, Taimur Khan, senior analyst at Knight Frank, says this an improvement over the previous quarter as there was a 4.5 per cent year-on-year decline during the second quarter. Khan adds that prime rental performance has performed well both on a quarterly and annual basis, rising 1 per cent and 2 per cent respectively, because of ―high demand for office space in this sector and limited new supply underpinning price growth‖. According to JLL, the third quarter saw around 35,000 sq m of gross leasable area (GLA) across Dubai, with an additional 110,000 sq m due for completion by year end. Despite the new supply, an oversupply in prime commercial office space is unlikely in core locations such as Dubai International Financial Centre and Tecom as occupancy remains high and demand strong, according to Matthew Dadd, head of commercial agency and leasing at Knight Frank. Furthermore, the vacancy rates within commercial business districts have been largely stable over the past quarter at around 8 per cent. ―However, in secondary markets, we continue to witness higher vacancy rates and, therefore, additional supply could impact the market,‖ says Dadd. ―In the long term, we do see increased supply in the prime sector, which will need to be phased accordingly to allow the market to absorb before impacting headline rents.‖ On the retail front, the market also remains subdued with super-regional and regional malls recording quarter-on- quarter declines of 3-5 per cent in headline rents, according to JLL. Smaller neighbourhood and community malls have generally recorded greater declines than the larger ones. With a current supply of 3.4 million sq m, retail real estate in Dubai has seen vacancy levels increase over the past year. This trend has continued during the third quarter to reach 12 per cent. Hospitality Although Dubai remains one of the best-performing hospitality markets in the world, the emirate‘s hotel industry remained under pressure, according to JLL, with year-to-date revenue per available room (RevPAR) of Dh503 in August the lowest in the past decade. The average daily rate (ADR) registered a 4 per cent drop to Dh665. However, Dubai continues to see a strong occupancy rate at 75 per cent since the beginning of the year despite 1,800 keys added to the market in the third quarter, bringing the total stock of quality hotel rooms to almost 82,200 keys. ―[The] hotel and retail sectors are experiencing softening market conditions and can be expected to see performance decline further over the next 12 months,‖ says Plumb. Primary vs secondary market Ostensibly, the current trend suggests that residential demand is gradually shifting from the secondary to the primary market or off-plan projects, as most developers are offering financing options with attractive payment terms and lower down payments. This has resulted in a massive growth in off-plan sales during the third quarter, accounting for 65 per cent of all transactions so far this year, according to JLL. ―The off-plan sales have really taken off mainly due to the relaxing of developer payment plans and lower start pricing points, coupled with long post-handover payments,‖ says Volpi. Alexander von-Sayn Wittgenstein, luxury sales director of Luxhabitat, says there is also growing demand for off-plan options in the prime residential market, although he cites a variety of factors driving this, including homeowners looking for better homes. ―It really depends on the area and the supply due to arrive,‖ says Wittgenstein.

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He explains that the prices in prime areas will remain relatively inflexible for secondary-market property as they are established locations with little room for off-plan. Examples of such locations include Downtown Dubai. ―The off-plan propertie s in the established areas will be released at the market rate, however, with more flexible payment plans,‖ says Wittgenstein. ―As an investor, it‘s more appealing than buying a secondary-market property that might be tired.‖ For off-plan and ready-made units, industry experts explain there are two types of buyers when considering the risk profile: those looking at ready-made units are more risk averse, while off-plan buyers are more willing to take risks with an eye on capital appreciation. The determining factor, according to Vucinic, has been a buyer‘s ability to pay the minimum down payment. ―The inability to pay at least 25 per cent of the unit value has forced certain buyers to choose off-plan property,‖ says Vucinic. ―Our research has indicated that the total number of off-plan transactions in the third quarter increased by a massive 86 per cent from the previous quarter, while the value of off-plan transactions was up by 118 per cent to Dh4.04 billion.‖ Wittgenstein says investors are looking at both apartments and villas in areas such as Dubai Creek Harbour, Downtown Dubai and smaller units such as Maple in Dubai Hills Estate. ―The best-performing area was Dubai Marina with Dh363 million, and the worst-performing was Jumeirah Islands at Dh26.6 million in secondary-market sales,‖ he says. Volpi points out that the secondary market has been sluggish, with the uptake of off-plan sales acting like a sponge, ―soaking up all the interest despite secondary market prices reducing‖. Furthermore, he says individual sellers are asking prices considered still too high. ―This logjam will only start to move once prices are further reduced,‖ he says. ―It is still a very strong buyers‘ market.‖ Outlook With additional stock entering the market, most industry experts PW spoke to agree that the market is heading for further correction, and the reversal of the current trend can only be anticipated late next year. ―In the fourth quarter we expect to see further corrections in sales prices and rents,‖ says Vucinic. ―A slight pickup of completed unit transactions is expected. This will, however, have a negative impact on off-plan sales transactions, which we expect to decline and then stabilise.‖ Stevens agrees that the sheer volume of properties announced and anticipated for delivery over the next few years will continue to put further pressure on rental rates. ―At this point it is difficult to gauge when the market will rebound as it depends on a number of internal and external factors,‖ says Stevens. ―We do not expect a recovery in the real estate market in the short term until economic conditions and market sentiment improve.‖ Source: Gulf News Back to Index

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FROM HUMBLE ABRA STEPS TO SKY-HIGH ICONS Wednesday, November 15, 2017 One of the first international engineering firms to take up residence in Dubai, Atkins‘ influence on the built environment has evolved over the last half century from behind-the-scenes infrastructure consultancy to a high-profile portfolio of iconic structures. ―This year we are celebrating 50 years in the region,‖ says Tom Hasker, managing director — property at Atkins. ―Originally, Atkins was largely recognised as an engineering and infrastructure brand, but over time we also developed our architectural business.‖ Atkins‘ UK expertise was first exported to the region in 1967 when a small team of engineers was sent to Kuwait to work on the country‘s utilities infrastructure and road design. In 1979, client project demand saw the firm plant its feet permanently on Dubai ground with a new office and involvement in key infrastructure projects such as the dredging of Dubai Creek. Says Hasker: ―In the early days the region already had tremendous aspirations, but there wasn‘t the supply of on-the- ground quality engineers, architects and contractors needed to realise the vision of the rulers. ―The people who worked here at the time always reminisce about the immense pressure they were under to make projects happen. However, in a lot of ways it was easier to deliver the big jobs back then as there were less of them, whereas these days everyone‘s job is big and important, but just one of many.‖ One of Atkins‘ first transformational Dubai projects was, quite literally, a step change for the company, as Hasker explains: ―In the early 80s the Dubai Municipality commissioned Atkins to design a reinforced concrete edge along the Deira bank of the creek to make passenger access on and off abra water taxis less of a challenge, and this resulted in the creation of the now familiar abra steps.‖ In 1985, the team took on its first residential architectural commission, for the design and construction of a private villa on Al Wasl Road, and this led the way for more and more project wins, including the city‘s original Standard Chartered Bank building, Dubai Police College and the Taj Palace Hotel. Atkins‘ turn to truly shine came in 1994 when it was engaged to design the city‘s original hospitality icon, the Burj Al Arab, with the Jumeirah Beach Hotel and Wild Wadi Water Park also representing milestone project wins for the company. Moving into the new millennium, the company continued to build bigger, taller and more complex structures with the Shaikh Zayed Road area home to a raft of Atkins-designed and engineered landmarks, including the first Address Hotel, The Address Downtown Dubai, along with the Princess Tower, 21st Century Tower, Chelsea Tower (now rebranded as the Al Salam Hotel Suites) and the Millennium Tower. Its most recent high-profile accomplishment is the Dubai Opera, with Atkins managing the project from drawing board to delivery. But its contribution to the city‘s urban fabric isn‘t always so immediately apparent, as Hasker explains: ―Our involvement with Dubai Municipality spans years from creekside development to the Metro and in defining the areas that will promote Dubai‘s growth and development. The Dubai Metro, with the Red Line the world‘s longest driverless single metro line, was another hugely successful project for which we provided full multidisciplinary design and management of the civil works. ―We are also heavily involved with master planning for Al Maktoum International Airport in Dubai South.‖ Urban rejuvenation is another area where Atkins is making its mark. ―We see a lot more thought now going into development, rather than a desire to simply have trophy buildings, which don‘t reflect the true urban fabric,‖ says Hasker.

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―And there‘s real interest in urban rejuvenation projects such as what Meraas has done with La Mer to bring new life and sensible development to existing areas,‖ Hasker adds. ―Atkins is also lead consultant for the mixed-use waterfront Marsa Al Seef development on Dubai Creek, which is reactivating the real ‗old Dubai‘.‖ At the opposite end of the design spectrum, but also sited on the banks of the historic creek, Atkins‘ work on the master plan for Emaar‘s Dubai Creek Harbour community, in collaboration with RTKL, has a strong focus on digital innovation. ―Dubai is ahead of the curve compared to more established markets when it comes to digital infrastructure development, and that‘s because a lot of the infrastructure here is so young,‖ says Hasker. ―So, whereas not many established cities have the ability to master plan scaled communities such as Dubai Creek Harbour from scratch, we have the opportunity to leapfrog ahead. We have the view that within the next five years our business landscape, as well as Dubai‘s physical landscape, will be dramatically different. ―The way that we deliver our services will reflect the massive shift towards digital engagement — or generative design — with technology that allows us to produce more efficient designs more quickly. And Dubai is embracing this far more quickly than other markets.‖ Source: Gulf News Back to Index

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A FURTHER 163,000 HOMES IN THE PIPELINE FOR DUBAI Monday, November 13, 2017 If all goes as per developers‘ plans, Dubai will see a further 163,840 properties being built over the next five years from 387 projects. Next year could account for the highest number of these handovers, at 27,360 units, based on broad estimates put out by fam Properties. The year after could see 19,850 units and 17,754 further homes in 2020. So far in 2017, Dubai has seen the launch of 90 projects consisting of 36,556 units. ―We took this initiative because we want our investors and buyers to have a more accurate picture of the Dubai property market by being able to analyse facts and figures in a new way,‖ said Firas Al Msaddi, CEO of fäm Properties. ―This is something they‘re eager for because it will help to make buying decisions based on facts and figures and is ultimately more profitable.‖ The online tool also provides comparisons on the change of rent over time. Investors or end users keen to assess rental yield potential can take advantage of a rental range index which pinpoints rates over 10 years. Although rental rates for the same category of apartments in the same area have varied greatly based on size and location over 10 years — a major factor in the buying decision — the gap has closed significantly in the last two to three years. Two-bed apartment rentals in Downtown Dubai ranged from Dh150,000-Dh260,000 in 2009 and reached a low of Dh95,000-Dh120,000 in 2012. In December 2016, rates were at Dh160,000-Dh180,000. Source: Gulf News Back to Index

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DOMESTIC SALES GAINS BOOST EMAAR‘S NET PROFIT Sunday, November 12, 2017 In an indication of investor interest for off-plan buying in Dubai, Emaar Properties‘ core business line of selling freehold properties grew 27 per cent in the first nine months to record Dh6.5 billion in revenues. Overall revenues for the master-developer came in 21 per cent higher to Dh11.03 billion. Net profit totalled Dh4.34 billion, a gain of 20 per cent over the Dh3.62 billion same period last year. And for the third quarter specifically, net profit was Dh1.51 billion, up 32 per cent year-on-year. And revenue gains also weighed in significantly, up 45 per cent to Dh5.58 billion. There is an IPO process going on at Emaar Development LLC, to offload 20 per cent of its build-to-sell property business in the UAE. (Emaar Development LLC accounted for 48 per cent of the total revenue during first three quarters.) ―The impressive growth in sales of our Dubai residential property launches this year puts us in a strong position to generate strong cash flows for the coming years,‖ said Mohammad Alabbar, Chairman. ―The partial listing of Emaar Development and the proposed special dividends to be distributed from its proceeds highlight the continued value that we bring to our shareholders.‖ It has benefited from the surge in sales of residential property in Dubai, which increased by 32 per cent over the same period last year to Dh15.36 bills. Emaar now has a domestic sales backlog of Dh40.80 billion, with an expected net cash flow to Emaar of about Dh18 billion. It has over 24,000 new developments under construction across eight masterplanned projects in prime locations. More than 80 per cent of these units are sold. The key launches in Q3-17 included the new Golf Links neighbourhood, a villa community in Emaar South, 17 Icon Bay and Address Harbour Point in Dubai Creek Harbour and Park Ridge and Phase 3 of Sidra villas in Dubai Hills Estate. Emaar also announced the launch of Sky Walk, a 200-metre high cantilever observation corridor in the Address Sky View development in Downtown Dubai. Emaar‘s total property sales including international operations in the first nine months of 2017 was Dh17.63 billion with an expanding total backlog of Dh50.54 billion. To date, Emaar has handed over 44,200 residential units in Dubai and overseas. Emaar‘s shopping malls, hospitality and leisure businesses recorded revenues of Dh4.44 billion. The international property development operations contributed Dh2.55 billion to total revenue, an increase of 51 per cent. Overseas development revenue now represents 19 per cent of the total. Source: Gulf News Back to Index

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A PRIMER ON DUBAI RENTAL INDEX CALCULATIONS Sunday, November 12, 2017 With key locations in Dubai recording rental declines through the year, it will be up to the city‘s Rental Index to mirror the changes when it gets updated for 2018. The ―Rental Increase Calculator‖ was created by Dubai Land Department to calculate increase percentages. This is determined based on the average decline in a particular neighbourhood‘s rental value, depending on the specifications of the unit in question, including its use, location, number of rooms, and other parameters. The increase is set at a maximum of 20 per cent. Any increases are as follows: * If the rent is 10 per cent less than market value, there is no increase. * If the rent is 11-20 per cent lower, the maximum increase may be up to 5 per cent. * If the rent is 21-30 per cent lower, the maximum increase may be up to 10 per cent. * If the rent is 31-40 per cent lower, the maximum increase may be up to 15 per cent. * If the rent is lower than 40 per cent or more of market value, the maximum increase may be up to 20 per cent. The Rental Increase Calculator may be referred to if disputes arise between landlords and tenants over rental increases. In this case, the beneficiary must visit the Land Department website or download the Ejari smart application to access the calculator and make an inquiry by entering the required data. Source: Gulf News Back to Index

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EMAAR DEVELOPMENT LPO RAISES DH4.8 BILLION IN LARGEST DUBAI LISTING IN THREE YEARS Thursday, November 16, 2017 Emaar Development, the real estate development arm of Dubai‘s Emaar Properties, raised Dh4.82 billion from its IPO, the biggest listing since 2014 and the third largest ever offering on a Dubai-based exchange. ―Today marks an important milestone for Emaar Development, as the strong retail and institutional investor interest in our IPO places us closer to achieving our vision for the future,‖ said Emaar Properties chairman Mohamed Alabbar. The company priced the sale of 800 million shares – equating to a 20 per cent stake in the firm - at Dh6.03 per share, according to a statement on the Dubai Financial Market (DFM) on Thursday. Emaar Development‘s Dh4.82 billion IPO is the largest on the DFM since the 2014 listing of fellow Emaar Properties subsidiary Emaar Malls, which raised Dh5.8bn. It is the third largest Dubai listing after Emaar Malls and the US$4.96 billion IPO of DP World on Nasdaq Dubai in 2007. The Dh6.03 price came in at the middle of the original pricing guidance of Dh5.7-6.9 per share announced in early November, which was subsequently revised to Dh6.03-6.70 per share. Pricing at the maximum level would have resulted in an IPO of Dh5.52bn. ―Emaar Development has a clear strategy for growth, a strong sales backlog, high cash flows, and targeted dividends of $1.7bn to be paid over the next three years – indicating strong dividend yield, especially in comparison to our peer group," Mr Alabbar said. ―We are highly confident in the future of our group, and the benefits that this offering will create for shareholders.‖ Institutional investors were allocated 93.8 per cent of the 800 million shares on offer, with retail investors buying the remaining 6.2 per cent subscription, the company said. It did not disclose to what extent the offering was oversubscribed. Shares in Emaar Properties fell following the announcement, opening one per cent lower, eventually closing down 0.3 per cent at Dh7.86. ―There is no clarity yet on the special dividend to be paid to shareholders of Emaar Properties, and that is causing selling pressure in the market,‖ Marwan Shurrab, head of high net-worth and retail equities brokerage at Al Ramz Capital in Dubai, told Bloomberg. ―The market has been pricing in a lower special dividend range, between AED 0.7-0.8 per share, and that is less than what was initially expected‖ when the unit IPO was announced.― There still is no clarity on by how many times each of the tranches were over-subscribed. People want to know the details, what was the appetite from each side.‖ Trading in the stock is expected to commence on the DFM on November 22. Emaar Development is only the second company to IPO on the DFM since the debut of DXB Entertainment in November 2014. Only one company - insurer Orient UNB Takaful - has listed on DFM since, with its shares going untrading since their June debut. The Abu Dhabi National Oil Company (Adnoc) announced plans earlier this week to list a minority stake in Adnoc Distribution, its services stations operator, on the Abu Dhabi stock exchange in December. Source: The National Back to Index

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DH30M DUBAI APARTMENT COULD BE BUSINESS BAY'S FINEST - IN PICTURES Wednesday, November 15, 2017 Everybody needs good neighbours, as the theme tune to the popular Australian soap goes. Not if you have Dh30 million to spend and are looking for an apartment in the Business Bay area of Dubai, however. For this rather hefty amount you can purchase your own floor in the swanky Volante Tower alongside Dubai Water Canal. And when you do fancy some socialising, you can make your way down to the tower's own Resident's Club complete with a Far Eastern aesthetic, outdoor terrace and fire pit for the fast-approaching cooler winter evenings. The club has its own kitchen manned by expert chefs and catering is available should the host wish to feed friends as well as family. A fitness suite comes as standard, while the spa features a curious horizontal shower. The relaxation doesn't end there - a private cinema allows a night-in at the movies without the need to book tickets or dodge the flying popcorn. The main attraction though is the apartments and the opportunity to mix large floor space with waterfront views and the picture-perfect Burj Khalifa rising in the background. The full-floor apartment, being marketed by luxuryproperty.com, measures 10,000 sq ft and has an open-plan living and dining area with floor-to-ceiling windows. It comes with five en-suite bedrooms, a private study and living quarters for staff. The interior design is tasteful with soft browns and beiges, marble bathrooms and a pleasant sense of simplistic homely warmth making it the kind of place where a family may look to put down roots. Sales prices in Business Bay were flat during the third quarter compared to the second quarter, according to data by Asteco. They were down 8 per cent year on year. Average rents in the area were down 16 per cent year on year, the company's report said. Source: The National Back to Index

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EMAAR THIRD QUARTER NET PROFIT SOARS 32%, BEATS ANALYSTS' FORECASTS Sunday, November 12, 2017 Emaar Properties, the UAE‘s largest real estate developer that built Dubai's Burj Khalifa, posted a 32 per cent increase in third quarter net profit on Sunday, beating analysts' forecasts, thanks to an uptick in Dubai residential property sales. Net profit for the three months ending September 30 reached Dh1.51 billion compared with Dh1.14bn for the same period last year, the company said in a statement. Bahrain-based investment bank Sico had forecast a third quarter net profit of Dh1.36bn, according to a Reuters poll. A Bloomberg survey quoted an analyst forecasting a third quarter net profit of Dh1.25bn. The company's profit beat expectations "largely due to stronge-than-expected performance of the UAE property development business," said Ayub Ansari, a senior analyst at Sico. "Revenues from Emaar's hospitality and lease segment business were largely in line." For the full year, Sico is projecting an 11 per cent increase in earnings to Dh5.8bn. Third quarter revenue for the company surged 45 per cent to Dh5.58bn from Dh3.84bn. Nine-month sales of residential property in Dubai hit Dh15.36bn, 32 per cent higher than a year earlier. Emaar now has a domestic sale backlog of Dh40.8bn, and an expected net cash flow of Dh18bn, the company said. ―The impressive growth in sales of our Dubai residential property launches this year puts us in a strong position to generate strong cash flows for the company of the coming years,‖ said Mohamed Alabbar, chairman of Emaar Properties. ―The sustained demand for projects in Dubai is a strong indicator of the investor trust in Dubai, which is today one of the fastest-growing hubs for business and leisure.‖ Emaar Development, the company‘s real estate development business currently undergoing an IPO process, posted a 32 per cent rise in nine-month net profit to Dh2.1bn from a year earlie, with itsnine-month revenue soaring 48 per cent to Dh6.5bn. Emaar is selling a 20 per cent stake in the subsidiary, which is expected to raise as much as Dh5.52 billion ($1.5bn), with shares due to list on the Dubai Financial Market. It will be Emaar's third subsidiary-listing after Emaar Malls in Dubai and Emaar Misr, its Egyptian unit in Cairo. ―The partial listing of Emaar Development and the proposed special dividends to be distributed from its proceeds highlight the continued value that we bring to our shareholders,‖ Mr Alabbar said. Emaar‘s shopping malls, hospitality and leisure businesses recorded flat revenue of Dh4.44bn in the first nine months of this year. Revenue from the International property development unit rose 51 per cent to Dh2.55bn from Dh1.69bn, representing 19 per cent of total revenue. Emaar‘s total property sales including international operations in the first nine months this year stood at Dh17.63bn, with a total backlog of Dh50.54bn. The company, which has delivered over 34,500 residential units in Dubai since 2002, has sold around 80 per cent of over 24,000 units currenlty under construction across eight projects. Earlier this month, Emaar Malls, the retail business majority-owned by Emaar Properties that operates Dubai Mall, posted an 11 per cent increase in third quarter net profit to Dh485 million, beating an analyst's forecast. The company benefited from its $151m acquisition of a 51 per cent stake in online retailer Namshi. Emaar Properties shares rose 1.03 per cent to Dh7.88 in Dubai ahead of Sunday's earnings announcement. Source: The National Back to Index

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WASL LAUNCHES 3RD TOWER FOR SALE AT PARK GATE RESIDENCES Friday, November 17, 2017 After successfully selling out the first two towers of its flagship wasl1 project in under a month, wasl Asset Management Group, one of the largest real estate management and development companies in Dubai, has released the third tower of Park Gate Residences for sale onto Dubai's freehold property market. The three towers are part of Park Gate Residences, phase 1 of the wasl1 project, which is the company's iconic parkside freehold master development in the heart of Dubai and is strategically located directly overlooking Zabeel Park and near the Dubai Metro. It is also the first freehold project to be developed in the Zabeel area. Zainab Mohammed, chief property management and marketing officer at wasl properties, commented: "Our unmatched success in selling Towers C and D at Park Gate Residences demonstrates the accuracy of our expectations for this project and highlights the excellent features it offers residents. The most attractive among these are its spacious and contemporary units, and exceptional facilities, which are enhanced by its unique location and tranquil setting in the heart of the city. We expect the third tower, Tower A, to attract even higher demand, especially among buyers who missed out on units at the first two towers." Park Gate Residences encompasses four luxury residential towers on a shared podium and will provide 746 modern apartments to the market. 207 units, which include one, two and three bedroom apartments, will be available for sale in the third tower. Park Gate Residences also provides 25,000 square metres of retail space, which will provide residents with a wide range of leisure and entertainment options. Wasl1 supports Dubai's vision for the freehold sector and creates a harmonious relationship between urban and natural characteristics to attract different investor groups. The development is a gateway between Old and New Dubai, with plenty of exceptional amenities including landscaped gardens, swimming pools and water features. Source: Khaleej Times Back to Index

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DAMAC LAUNCHES VILLAS FOR DH2.5 MILLION Sunday, November 12, 2017 Damac Properties has announced the launch of The Park Villas, a collection of luxury homes in Damac Hills. The Park Villas start at Dh2.5 million and go on sale on November 18, from 10am till 7pm, at the Damac Hills sales office on Al Qudra Road. Villas are available in a variety of sizes, including three, four, five and six-bedroom units, with front and backyards and parking bay for two cars. Featuring four million square feet of private parkland, The Park Villas are the ideal home for families seeking an active lifestyle. "The Park Villas is a unique offering for those who prefer to enjoy the great outdoors within a sophisticated and tranquil community," said Niall McLoughlin, senior vice-president, Damac Properties. "Residents in this community will enjoy world-class recreational facilities while in the comfort of their community. The collection of homes is appealing for families who prefer to relax and unwind with the sights and sounds of nature." The community features parks and children's play areas, in addition to an events area that will bring food and handicrafts markets to the community. Source: Khaleej Times Back to Index

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DUBAI HOSPITALITY SECTOR TO SEE ADDITION OF 29,200 KEYS Thursday, November 16, 2017 Dubai will see a major supply of hotel keys in coming years the emirate has the highest number of rooms under contract at the end of October followed by the holy city of Makkah in Saudi Arabia in the Middle East and Africa region. According to STR's data for October, there were 29,226 rooms in the pipeline across 95 hotels in Dubai, accounting for 30.3 per cent of the existing supply of 96,340 keys. Makkah has 18 projects in the pipeline which will add 23,791 rooms, taking its tally to 31,149 keys. Under contract projects include those in the construction and planning stages but does not include projects in the unconfirmed stage. Dubai Tourism figures released earlier this month showed that the number of hotel rooms in the emirate stood at 106,167 spread across 678 establishments in September 2017, an aggregated 6 per cent increase as compared to September-end 2016. Luxury five-star hotels made up 33 per cent of the emirate's total inventory, with four-star hotels commanding a 23 per cent share and properties in the one- to three-star categories a share of 21 per cent. According to STR, the other three cities that made into the top five ranking are the regional capitals of Doha, Riyadh and Abu Dhabi. The data showed that 8,878 rooms are under contract across 38 projects in the Qatari capital, accounting for 80.4 per cent of the existing supply of 11,038 rooms. Riyadh will likely to have 29 more hotel projects, adding 6,349 rooms, which will account for 50 per cent of its existing supply. While the UAE capital has 12 hospitality projects under contract to add 4,124 keys, accounting for 15.5 per cent of its supply. STR earlier said demand outpaced the supply in Abu Dhabi hospitality industry in October, driven by World Skills event and the upswing in the tourist arrivals. Average daily rate increased 2.3 per cent to Dh465.58 and revenue per available room witnessed 15.3 per cent growth to Dh376.88. Source: Khaleej Times Back to Index

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HOME HUNTING ON THE YAS ISLAND Wednesday, November 15, 2017 The Yas Island development was initially launched in 2006 by Aldar Properties, aiming to establish an entertainment destination that is a 30-minute drive from the UAE capital. The overall scheme is based around the F1 track hosted by Yas Marina Circuit, which was under contract from Aldar and completed in 2009. The location of various Aldar projects, such as Ansam and West Yas, allows tenants to enjoy the proximity to varying leisure amenities on Yas Island, including Yas Circuit, Yas Waterworld and Ferrari World Abu Dhabi. According to Property Monitor‘s supply tracker, a total of 1,564 units are to be completed on Yas Island by end 2017 and 5,060 units by the end of 2022. Yas Island is an attractive site for investors due to its stance as Abu Dhabi‘s predominant entertainment centre as well as its competitive pricing. In September, a one-bedroom apartment at the Yas Island sub-community Mayan was selling at an average of Dh1,389 square foot and a two-bedroom apartment at Dh1,386. Ansam was the first phase of the community launched in 2015 by Aldar and is nearing completion this quarter. This community includes four buildings with a total of 547 low-rise and medium density apartments, located on the west side of Yas Island. Ansam has an excellent range of leisure facilities and retail outlets, and is strategically located near Yas Links Golf Course, thus granting tenants a magnificent view. According to Property Monitor‘s Index, Ansam witnessed a 0.13 per cent decrease in residential sales price in August. And in September, Ansam‘s one-bedroom apartment was sold at Dh1.41 million and a two-bedroom unit at Dh1.82 million. West Yas, a sub community of Yas Island, is exceptionally positioned with a waterfront location, with 1,017 villas expected for completion by the year-end. This community is known to be attractive for family living with a relaxed environment, two retail centres, a community centre and a variety of schools in proximity. In September, the sales price for a four-bedroom villa was Dh4.08 million. In addition, West Yas requires a down payment of only 15 per cent, followed by a 5 per cent payment in December and a 5 per cent payment in March. The remaining 75 per cent is linked to the handover of the project, which highly contributes to attracting first-time buyers. Source: Gulf News Back to Index

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ALDAR RECORDS DH601M IN NET PROFITS FOR Q3-17 Monday, November 13, 2017 Abu Dhabi‘s Aldar Properties will continue to mine mid-market opportunities after ―hitting a rich vein‖ with two-bedroom apartments priced at Dh1 million, according to a top official. This will include ―multiple price points‖ across the land that it currently owns. ―There is an under supply of mid-market options in Abu Dhabi and that opportunity is waiting to be exploited,‖ said Greg Fewer, Chief Financial Officer. Its recent mid-market offering, Water‘s Edge on Yas Island, proved an instant hit on its September launch, and instrumental in overall offplan sales totalling Dh604 million in Q3-17. For the first nine months, Aldar‘s tally on this score was Dh2.4 billion. The developer reported revenues and net profit of Dh1.38 billion and Dh601 million in the July to end September period. The net profit comes in lower than Q3-16‘s Dh737 million. But the Q3-16 numbers were boosted by a ―one-off gain recorded from a number of land sales made to the Abu Dhabi Government, including one at Al Raha Beach,‖ said Fewer. Excluding that one-off, the Q3-17 numbers - revenue and gross profit - gained in high double-digit terms. Aldar on Monday (November 13) also confirmed Mohammad Khalifa Al Mubarak as its new Chairman after being its CEO, while Talal Al Dhiyebi takes over the chief executive‘s mantle. On the results, Fewer said Aldar continues to outperform the wider Abu Dhabi realty market in occupancy for its office and retail assets, with the former at 90 per cent plus. Its residential assets currently turn in an occupancy of 91 per cent. At a time when the leasing market across the emirate remains under intense pressure, Aldar‘s occupancy levels provides significant ―defensive strength‖, said Jasim Busaibe, Chief Asset Management Officer. The Abu Dhabi developer also confirmed that it will be taking ownership of the International Tower, and that details regarding the cost will be announced before the year is out. The office high-rise is located in the Capital Gate area, and where Aldar had last year bought another office property - Daman House - with full occupancy. ―The new transaction will start providing income from our Q4-17 results,‖ said Fewer. In a statement, Al Mubarak, Chairman, said: ―Our asset management business delivered a resilient performance during the quarter and we are pleased to be acquiring International Tower. Aldar continues to assess the market for other attractive acquisition opportunities in line with our commitment to drive growth of long-term recurring revenues.‖ At its hospitality interests, latest occupancy is 76 per cent, and that is 8 per cent higher than the city-wide average. At its flagship Yas Mall, occupancy remains steady at 93 per cent. But it‘s on development sales that Aldar continues to hit pay dirt. There will be further sales releases at Water‘s Edge, a Dh2.5 billion development that will eventually see more than 2,200 residences, Yas Island will also be where the listed company is going to start handovers shortly. The Ansam and Al Hadeel communities are on schedule to be handed over to customers by year-end, while Nareel, West Yas and Al Merief are in their final stages of construction and for hand over early next year. Source: Gulf News Back to Index

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ALDAR'S Q3 NET PROFIT DECLINES 20% YEAR-ON-YEAR DUE TO ONE-OFF LAND SALES LAST YEAR Monday, November 13, 2017 Aldar Properties, Abu Dhabi's biggest publicly traded real estate developer, said its third quarter profit fell 20 per cent as gains from property sales made in the same quarter last year were not repeated. Net profit attributable to equity owners of the company fell to Dh597.8 million in the three months ended September 30 compared to Dh747.8m in the same period last year. Revenue fell 27 per cent to Dh1.38 billion in the quarter from Dh1.89bn in the corresponding period last year. Excluding those one-off gains made in the third quarter of 2016, the company saw a 27 per cent gain in year-on-year revenue growth during the quarter. The company also had Dh604 million in development sales in the period that included the complete sale of the first phase of homes at the company's new residential project Water's Edge. "Aldar has delivered another solid set of results," said Mohamed Al Mubarak, chairman of Aldar Properties. "The exceptional response to our new development, Water's Edge, launched at Cityscape Global, cements our reputation for delivering desirable destinations in Abu Dhabi. Aldar continues to assess the market for other attractive acquisition opportunities in line with our commitment to drive growth of long-term recurring revenues." Source: The National Back to Index

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ALDAR PROPERTIES ANNOUNCES BOARD AND MANAGEMENT CHANGES Monday, November 13, 2017 Aldar Properties, Abu Dhabi's leading listed property development, investment and management company, has announced two important appointments in a press release this morning. At yesterday‘s board meeting, the directors of the company appointed Mohamed Khalifa Al Mubarak to the board, as its chairman. The appointment of Mohamed Khalifa Al Mubarak to the board is consistent with the company‘s efforts to implement high standards of corporate governance. In making this appointment, the board also took into account Al Mubarak's unique expertise and experience, which will be crucial as Aldar enters the next phase of its growth. The board also appointed Abubaker Seddiq Al Khoori as Vice Chairman along with Waleed Ahmed Al Mokarrab al Muhairi. In addition, the board has appointed Talal Al Dhiyebi as Chief Executive Officer. Mr. Al Dhiyebi has served with distinction as the company‘s Chief Development Officer since February, 2015, and has been instrumental in the company‘s successful growth. The press release said that this is exactly the right time for Al Dhiyebi to step up to the role of CEO and is confident that he will continue to guide the company to further success. Source: Emirates 24/7 Back to Index

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SHARJAH PROJECT BEATS ITS OWN SALES RECORD Sunday, November 12, 2017 All 115 units at an apartment block in Sharjah‘s Aljada project got sold in one day, by far the best single-day performance by any developer in the emirate. This came about after developer Arada released Areej 5, the apartment block in Aljada‘s Phase 1, on November 9. All 115 units, which included studios and one-bedroom apartments, sold out on the same day, beating the 102 units sold on Aljada‘s launch day. ―It‘s clear that investors agree with our vision to provide a lifestyle that is second to none in Sharjah, at a price point that is realistic for all,‖ said Shaikh Sultan Bin Ahmad Al Qasimi, Chairman of Arada. ―We look forward to breaking ground on Aljada at the beginning of next year.‖ Delivered in phases starting in 2019, construction on Aljada will begin in the first quarter of 2018 and the entire project is expected to be completed by 2025. Source: Gulf News Back to Index

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ALJADA SELLS RECORD HOMES IN ONE DAY Monday, November 13, 2017 Aljada has broken the record for the number of homes sold by a developer in the emirate on a single day. The milestone came after developer Arada released Areej 5, an apartment block with 115 units in Aljada's Phase 1, on November 9. All 115 units, which included studios and one-bedroom apartments, sold out on the same day, beating the 102 units sold on Aljada's launch day. The record-breaking sales event follows recent updates at Aljada, including the signing of a partnership with Sharjah Electricity and Water Authority to power the 24 million square foot master-planned destination. Aljada is a master-planned destination with a sales value of Dh24 billion. Over 600 units in Aljada's phase one have been snapped up by buyers, making the project Sharjah's fastest-selling residential community. Source: Khaleej Times Back to Index

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SHARJAH‘S EMIRATES INDUSTRIAL CITY 75% LEASED OUT Wednesday, November 15, 2017 Seventy-five percent of Sharjah‘s Emirates Industrial City (EIC) has now been leased, according to a a report in the UAE‘s Khaleej Times newspaper, and an additional AED 200 million (US$ 55m) of plots are expected to be sold by the first quarter of 2019. Launched in 2005 by the investment consortium Emirates Company for Industrial Cities, the massive multi-use development covers a total of 83 million square feet (7.7 million sqm.) alongside the E611 Emirates Road. The Emirates Industrial City now accomodates more than 1,000 companies, employing over 150,000 people. Originally estimated as a AED 4.5 billion (US$ 1.23m) real estate development, the Emirates Industrial City‘s strategic location places it within an hour‘s drive of major airports, seaports and other logistics hubs in Dubai, Sharjah and the Norther emirates. Two of the city‘s eight main sections have been dedicated to ‗Warehouse City‘ for warehouses and logistics and, according to EIC, it has built 2 million square feet (186 sqm.) of warehouses to lease, Emirates Industrial City includes a wide range of light and medium industries, including manufacturing, packaging, distribution, logistics, furniture suppliers, industrial equipment, spare parts, home appliances and construction materials. The project also has 1.5 million square feet (140,000 sqm.) of open yards, with more planned. Sharjah has long been the UAE‘s largest manufacturing base accounting for nearly one-third of total manufacturing production. The sector accounts currently for 16 percent of the Sharjah‘s GDP and the Industrial Affairs Department of the Sharjah Economic Development Department estimates that this could rise to 25 percent by the year 2025. With this in mind, the government has targeted the manufacturing sector for new economic growth introducing a number of economic initiatives, investor incentives and making it easier for businesses to establish themselves in Sharjah. Emirates Industrial City is a joint-stock company with shares held by Al Hanoo Holding, Abudullah Al Zamil Co, Muhammad Abdul Aziz Co, Al Saeedan Properties and Kal Development. Source: Sharjah Update Back to Index

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FOUR IN 10 LONDON HOMESELLERS CUTTING PRICES IN TOUGH MARKET Monday, November 13, 2017 The proportion of London home sellers dropping their asking price is rising as the property market slumps further. With more than four in 10 revising lower, the average price cut of 6.7 per cent reflects ―initial over-optimism and a tougher market,‖ Rightmove Plc said in a report published Monday. New vendors coming to the market in November are also reducing their expectations, albeit more modestly, with a 0.2 per cent decline from a month earlier to 628,219 pounds ($824,000). That‘s an annual drop of 2.4 per cent — a far cry from growth of more than 20 per cent in 2014. ―Buyer demand has cooled and to warm up their interest both new-to-the-market sellers and those already on the market need to tempt them on price,‖ said Rightmove Director Miles Shipside. ―The effect is an impromptu autumn sale with the largest proportion of sellers on the market having reduced their initial asking prices at this time of year since 2010.‖ While London has been worst affected by the cooling of UK housing, the rest of the country is also seeing widespread reductions, with 37 per cent of sellers nationwide cutting their asking price. The average price for new properties to the market fell 0.8 per cent from a month earlier, to £311,043 (Dh1,496), although that‘s still 1.8 per cent higher than a year ago. A separate report by LSL Acadata showed annual house price growth in the UK slowed to 0.8 per cent last month, the weakest pace since March 2012. Transactions slumped 5 per cent in the first nine months of the year compared to the same period in 2016. However, the Bank of England‘s decision this month to raise interest rates for the first time in a decade will have a limited impact on demand, damped by the high proportion of households on fixed-rate mortgages and competition among lenders, Acadata said. Still, the weakening property market and the prospect of higher borrowing costs may be taking a toll on consumers. In a separate report, Visa said spending fell at the fastest pace since 2013 last month. Source: Gulf News Back to Index

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LONDON‘S REALTY MARKET KEEPS POLITICS AT BAY Friday, November 17, 2017 The property market however has remained active, supported with continuing foreign investment. Domestic players are finding themselves competing for land or assets against the weight of money and demand from overseas. The London investment market has been the recipient of a number of large flagship sales — The Leadenhall Building was snapped up by CC Land, whilst Hong Kong‘s Lee Kuma Keep purchased The Walkie Talkie for a record breaking £1.3 billion. More recently, Middle East‘s Al Ain Properties emerged as the mystery buyer behind the £285 million acquisition of Lacon London. In the residential land market we have seen CC Land and R&F Properties purchase large development sites in Vauxhall and Nine Elms. The growth of the emerging build-to-rent sector continues apace with increasing interest from both domestic and international developers, investors and funds looking to capitalise on the need for new homes across all housing tenures. US firms Greystar and Lone Star, among others, have imported their version of build-to-rent, as big businesses continue to signal their confidence in the sector. London, it seems, is confident of its status as a property investment destination with a mature, transparent and liquid market, even with a backdrop of political bickering and economic uncertainties. That was the picture painted by the inaugural ―London Development Barometer‖. We wanted to understand what keeps the industry up at night and what they think could be done to enable London development activities in the next five years. We surveyed 243 professionals from across the industry, quizzing them on topics that included government policy, market demand, infrastructure, and finance availability, to gain an understanding of what the market really thinks. It came as no surprise that 57 per cent believe there will be less development activity over the next five years. Eighty per cent of respondents believe that Brexit will take its toll, with availability of finance also playing its part, albeit to a lesser extent, with just 5 per cent believing it will have a significantly negative impact. Construction was also singled out as a problem — limited skills and capacity and rising costs are predicted to have a negative impact, according to 78- and 70 per cent, respectively. The industry is concerned about the influence of external affairs, matters that largely lie beyond the control of the individual. We also discovered that the concerns are met with pragmatism. Take the London residential market, where there is a real need for more homes and where demand will naturally continue to rise. Eighty-eight per cent were confident about the growth of build-to-rent, compared to 45 per cent for the residential sales model. And 80% believe there will be a rise in demand for affordable housing and 47 per cent see a rise in demand for student accommodation. The industry believes that market demand for all sectors — except retail — will increase in the next five years. Investment opportunities will follow. There is optimism, too — 82 per cent predict large scale infrastructure projects such as Crossrail 2 will have a positive impact, and 67 per cent believe that continued Government investment will have the same effect. Two in three respondents believe the Mayor of London, Sadiq Khan, is the most influential figure within London development. However, 86 per cent believe that the central and local governments are not doing enough to enable development activity. Ironically, the hot topics for the government and lobby groups, like promoting Help to Buy, addressing anticipated construction skills shortages and amending stamp duty are at the bottom of the development industry‘s priority list. The development sector has accepted that all things Brexit will remain uncertain for a while — except that it will likely have a negative influence in the short term. It has taken on board that the global political and economic climate will shift and evolve with some degree of unpredictability, which appears to be the new norm.

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It is aware of the pitfalls of potentially losing skilled workers en masse and rising construction costs.

There is nevertheless a particular need for housing and there is a demand for London property across various sectors. London property remains attractive to Middle Eastern and global investors, as recent transactions show. The industry has latched on to the practical approach. In various ways it is lobbying and encouraging central and local governments to make it easier and less risky to develop through policy and investment. It will work out how to do the rest. As the construction industry makes up 6 per cent of the UK GDP and three million jobs, it doesn‘t seem like a lot to ask. Source: Gulf News Back to Index

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PROFOUND CHANGES COMING TO THE GLOBAL RETAIL PROPERTY SECTOR Friday, November 17, 2017 According to new insights released by CBRE this week at the MAPIC retail real estate conference in Cannes, France, the retail industry of 2030 will provide tailored experiences for individual customers across any channel, at any place and at any time using data analytics and new technology. These changes will have a profound impact on the global retail property sector as well. CBRE's Future of Retail | 2030 series examines 40 "futurist" insights of how the global retail market will function in 2030 amid changes in customers' lifestyles, urban environments, retail operations logistics, technologies and other trends affecting the industry. After outlining the first eight trends at MAPIC, CBRE will reveal the next 32 over the coming weeks. "The future of retail will change more than we can ever imagine," said Natasha Patel, CBRE Director, Global Retail Research. "At CBRE, We have taken the time to think about what will change and what that will mean for customers, retailers, investors and the industry as a whole." Many of CBRE's initial eight insights in this series revolve around two major themes shaping the retail industry: the melding of online and in-store functions into omnichannel operations, and an increasing focus on providing shoppers meaningful experiences around the goods and services they purchase. "We as a society already have advanced beyond defining retailing simply as selling a product at a store," said Anthony Buono, CBRE Executive Managing Director of Retail Advisory & Transaction Services, the Americas. "Today's best retailers are at the forefront of these trends that we're pointing out. They're harnessing data and technology to provide each customer a compelling experience with their brand, be it in-store, online or on their smart phone." Initial eight retailing insights reported by CBRE this week include: Power of Prediction - Retailers will enlist technology and data to predict consumers' buying behavior with unprecedented accuracy. Many mundane purchases of everyday essentials will be automated through Internet- connected appliances and other such tools, making physical shopping more of a social and leisure experience. Consumer Experience Goes Individual - Retailers and brands will use predictive analytics to tailor their goods and services - and the experiences that go with them -- to specific customers rather than broad audiences. This will lead to a greater focus on niche retailers and shopping centers that capture a larger portion of spending from a smaller, likeminded community of shoppers. Stores As Brand Ambassadors - As retailers increasingly combine their in-store and online operations, physical stores will serve as venues where shoppers immerse themselves in the brand's experience and experiment with the products before purchasing them for same-day or next-day delivery to the store or their homes. Store employees will educate shoppers and demonstrate products for them rather than stocking shelves and taking inventory. Unrivalled Reach of M-Commerce - Technology will allow shoppers to research and purchase an item simply by capturing a picture of it. Shoppers will find direct links to a given product wherever they see it, be it on television, in a newspaper or magazine or at a movie theater. Pure-Play E-tailing Recedes - Retailers born of bricks and mortar already account for at least half of online sales, while those started online are adding physical stores to strengthen their brands. This convergence will create a truly omnichannel retail industry in which global online brands purchase more retail chains for their physical store networks, and online retailing further influences the form and function of the physical store. Stiff Competition For Customers - As shoppers increasingly favor experiences over goods, competition will intensify to capture their disposable income. Consumers will seek either long-term or short-term solutions, leaving the middle market squeezed.

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Store Automation - Mundane, repetitive tasks in the store will be handled by robots and other forms of automation, freeing store employees to work as brand ambassadors. Automation also will allow auto-pay service so shoppers no longer must stop at a checkout counter on their way out. Personal Car Ownership Declines - Autonomous vehicles will shift people's priorities to simply having access to cars rather than owning one. Car manufacturers will collaborate with major tech companies. Source: World Property Journal Back to Index

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HOME BUILDER CONFIDENCE RISES TO 8 MONTH HIGH IN NOVEMBER Friday, November 17, 2017 In the U.S., home builder confidence rose two points to a level of 70 in November 2017 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This was the highest report since March, and the second highest on record since July 2005. "November's builder confidence reading is close to a post-recession high -- a strong indicator that the housing market continues to grow steadily," said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. "However, our members still face supply-side constraints, such as lot and labor shortages and ongoing building material price increases." "Demand for housing is increasing at a consistent pace, driven by job and economic growth, rising homeownership rates and limited housing inventory," said NAHB Chief Economist Robert Dietz. "With these economic fundamentals in place, we should see continued upward movement of the single-family housing market as we close out 2017." Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. Two out of the three HMI components registered gains in November. The component gauging current sales conditions rose two points to 77 and the index measuring buyer traffic increased two points to 50. Meanwhile, the index charting sales expectations in the next six months dropped a single point to 77. Looking at the three-month moving averages for regional HMI scores, the Northeast jumped five points to 54 and the South rose one point to 69. Both the West and Midwest remained unchanged at 77 and 63, respectively. Source: World Property Journal Back to Index

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

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

Asteco‘s network of offices in Abu Dhabi, Al Ain, Dubai, Our valuations are carried out in accordance with the Northern Emirates, Qatar, and the Kingdom of Saudi Arabia Royal Institution of Chartered Surveyors (RICS) and not only provides a deep understanding of the local markets International Valuation Standards (IVS) and are but also enables us to undertake large instructions where we can quickly apply resources to meet clients requirements. undertaken by appropriately qualified valuers with extensive local experience. Our breadth of experience across all the main property sectors is underpinned by our sales, leasing and investment The Professional Services Asteco conducts throughout teams transacting in the market and a wealth of research the region include: that supports our decision-making.

• Consultancy and Advisory Services

John Allen BSc MRICS • Market Research • Valuation Services Director, Valuation & Advisory

+971 4 403 7777 [email protected] SALES Asteco has established a large regional property sales division with representatives based in UAE, Saudi Arabia, Jenny Weidling BA (Hons) Qatar and Jordan. Manager – Research and Advisory Our sales teams have extensive experience in the +971 4 403 7789 negotiation and sale of a variety of assets. [email protected] LEASING Asteco has been instrumental in the leasing of many high-profile developments across the GCC.

ASSET MANAGEMENT Asteco provides comprehensive asset management services to all property owners, whether a single unit (IPM) or a regional mixed use portfolio. Our focus is on maximising value for our Clients.

OWNER ASSOCIATION

Asteco has the experience, systems, procedures and manuals in place to provide streamlined comprehensive Association Management and Consultancy Services to residential, commercial and mixed use communities throughout the GCC Region.

SALES MANAGEMENT Our Sales Management services are comprehensive and encompass everything required for the successful completion and handover of units to individual unit owners.