Week 27 SUNDAY, 07 JULY 2019

ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

REAL ESTATE NEWS

UAE / GCC / MENA

UAE MORTGAGE APPLICATIONS UP BY NEARLY 80 PER CENT

STABLE OIL PRICE LIFTS GCC BANKING SECTOR OUTLOOK, SAYS FITCH

FIRST BANKING M&A WAVE IN GCC SUBSIDES BUT UAE STILL RIPE FOR CONSOLIDATION, SAYS S&P

UAE DEFINES INDUSTRY SECTORS ELIGIBLE FOR UP TO 100% FOREIGN OWNERSHIP

UAE CONSTRUCTION PROJECTS' VALUE HITS DH3 TRILLION IN JUNE

UAE TIPPED TO BE BEST GULF ECONOMY IN 2020

DUBAI BIGGEST BENEFICIARY OF VAT REVENUE

DUBAI

FIRST RESIDENTS MOVE INTO DAMAC'S AKOYA MEGA PROJECT IN DUBAI

DUBAI HOLDING SEES STRONG PERFORMANCE IN 2019 ON NEW PROJECTS

SOBHA UNVEILS LUXURY ONE PARK AVENUE RESIDENTIAL PROJECT IN DUBAI

DUBAI LAUNCHES NEW INITIATIVE TO OPEN UP PROPERTY INVESTMENT MARKET

EXPO 2020 WILL DELIVER 'HUGE CHANGE' TO UAE ECONOMY, SAYS DANUBE BOSS

WORK STARTS ON PHASE 2 OF DUBAI AUTODROME BUSINESS PARK

BUILDER PICKED FOR NEW DUBAI CRUISE TERMINAL PROJECT

REVEALED: HOW DUBAI CANAL MARINE TRANSPORT WILL LOOK IN 2030

WALDORF ASTORIA HOTEL OPENS ITS DOORS IN DUBAI'S DIFC

NAKHEEL SET TO OPEN OBSERVATION DECK ABOVE PALM JUMEIRAH

PARTIAL TITLE DEEDS LAW OPENS UP INVESTOR POOLS FOR DUBAI

DUBAI’S SHORT-TERM RENTERS NEED HOMEOWNERS’ BACKING

DUBAI RESIDENTS REVEAL THEIR PROPERTY PRIORITIES

POST DUBAI EXPO 2020, THE FOCUS WILL BE ON SUSTAINING GROWTH

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

REAL ESTATE NEWS

YIELDS ARE IN INVESTORS’ FAVOUR IN DUBAI REALTY

ICD BROOKFIELD PLACE: THREE TENANTS SIGN LEASE FOR A COMBINED 55,000 SQUARE FOOT SPACE

ABU DHABI

SNOW ABU DHABI THEME PARK SET TO OPEN IN 2020

ALDAR LAUNCHES RENT TO OWN SCHEME FOR YAS ISLAND RESIDENTIAL PROJECT

TENDER ISSUED FOR WORLD'S BIGGEST SOLAR PROJECT IN ABU DHABI

AS ABU DHABI OPENS FREEHOLD TO EXPATS, WHERE SHOULD YOU BUY YOUR HOME?

INTERNATIONAL BAHRAIN'S INVESTCORP SEALS $96M DEAL FOR GERMAN PROPERTY NRIS DRIVE INDIA’S LUXURY REAL ESTATE BOOM

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FIRST RESIDENTS MOVE INTO DAMAC'S AKOYA MEGA PROJECT IN DUBAI Monday, July 01, 2019 Damac Properties said on Monday that it has commenced handovers at the Claret cluster of its landmark 55 million square-feet master development, Akoya. The first residents are now moving into Claret, which consists of 315 townhouses, the developer said in a statement. It added that following the handovers at Claret, Damac is committed to delivering over 1,300 homes across other clusters in the coming months. Construction works at Akoya, Damac’s largest development project, has been spurred by a slew of contracts that the developer has awarded over the last two years, the company said. All internal roadways have been constructed, and the community centre is in the final stages of completion. The community will also see the opening of a Carrefour market by the end of this year. Surrounded by the Trump World Golf Club, the mixed-use development also features amenities such as health clubs, swimming pools, schools, pharmacy, and dining and shopping options. Ali Sajwani, general manager of operations at Damac Properties said: “Akoya is a very special project, and we are thrilled to welcome the first residents to their modern townhouses in Claret.” Source: Arabian Business Back to Index

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SNOW ABU DHABI THEME PARK SET TO OPEN IN 2020 Monday, July 01, 2019 Snow Abu Dhabi will include 13 rides and attractions when it opens in the UAE capital in 2020, according to a report by the WAM state news agency. The 125,000 square foot snow play park – which developers claim will be the world’s largest destination of its kind – will be built as part of the Reem Mall development on Abu Dhabi’s Reem Island. The park will include rides and attractions with names such as Blizzard’s Bazaar, Snowflake Garden and Flurries’ Mountain, the report said. The park is being developed by Al Farwaniya Property Developers, Majid Al Futtaim Ventures and Thinkwell. Construction on the $1.2 billion Reem Mall development began in 2017 and when complete in 2020 it will include offer 2 million sq ft of leasable area comprising of 450 stores, including 100 dining options and a range of entertainment options. Dubai-based retail developer Majid Al Futtaim was also behind Ski Dubai, which opened at the Mall of the Emirates in 2005 and Ski Egypt - Africa’s first indoor skiing slope - which opened at Cairo’s Mall of Egypt in 2017. Source: Arabian Business Back to Index

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DUBAI HOLDING SEES STRONG PERFORMANCE IN 2019 ON NEW PROJECTS Thursday, July 04, 2019 Dubai Holding foresees growth over the next five years and “continued strong financial success” for the rest of 2019, driven by recurring revenue assets and the expected delivery of a pipeline of schemes over the coming months. “As we look ahead, we will diligently deliver on our five-year business plan that sets clear goals for all our companies,” Abdulla Al Habbai, chairman of Dubai Holding, which is the investment vehicle controlled by Sheikh Mohammed bin Rashid, Vice President of the UAE, Prime Minister and Ruler of Dubai. “For the rest of the year, our focus will continue to be on achieving strong financial success underpinned by the performance of our recurring income business, delivery of existing pipeline projects and executing prudent operational efficiency.” Dubai Holding’s companies include hospitality firm Jumeirah Group – which owns the flagship Burj Al Arab hotel – Tecom Group, Dubai Properties, Dubai Asset Management, Arab Media Group and Dubai Retail. The investment firm is set to play an important role in the staging of Expo 2020 Dubai through its hospitality and real estate offerings, providing a further boost to the group’s performance, Mr Al Habbai said. The diversified investment holding company operates across 12 business sectors in more than 10 countries across the world. In its operational statement for the first half of 2019 – marking its 15th year of operations – Dubai Holding said it has been “instrumental in developing Dubai’s economy”. “Overall, we had a robust operational performance in the first half of the year,” Mr Al Habbai added. During the past six months, the group delivered several key projects, including the second and third phases of Madinat Jumeirah Living, a 3.85 million square-feet residential development overlooking the Burj Al Arab. In addition, D-Marin Dubai, a joint venture between Dubai developer Meraas, Dubai Holding and D-Marin, one of the largest marina chains in the Eastern Mediterranean, commenced operations and now manages the Al Seef, Marasi and Jaddaf Waterfront marinas. Another Dubai Holding company, Dubai Asset Management, expanded its footprint at Jaddaf Waterfront residential scheme with the addition of the Dubai Wharf and Manazel Al Khor communities. Average occupancy levels have reached 95 per cent, with approximately 100,000 residents, it said. Dubai Properties released more than 500 units for sale across two projects in Dubai, including La Rosa at Villanova in Dubailand, while continuing to hand over other units. Jumeirah Hotels and Resorts continued its expansion with the opening of two new hotels in Abu Dhabi – Jumeirah at Saadiyat Island Resort and Jumeirah Al Wathba Desert Resort & Spa – as well as the Jumeirah Guangzhou in China. The company also announced a refurbishment of its flagship London hotel, the Jumeirah Carlton Tower. Tecom Group, the operator of 11 free zones, this year secured a Dh120 million investment from EnviroServe to build the first integrated electric and electronic waste recycling facility in Dubai Industrial City. Source: The National Back to Index

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UAE MORTGAGE APPLICATIONS UP BY NEARLY 80 PER CENT Tuesday, July 02, 2019 Mortgage applications in the UAE increased by 78 per cent over the year to April and enquiries rose by 59 per cent in the same period, a sign that end users are increasingly seeking long-term solutions for their housing needs, according to data from consultancy Mortgage Finder. The average size of a home loan, however, decreased from Dh1.67 million in May 2018 to Dh1.31m in the same month this year, reflecting the relatively weak property market, said the consultancy, which is part of the real estate portal Property Finder Group. “We have seen a shift from an investor-led market to an owner-occupied market, with more end users buying to live in the property,” said Chris Schutrups, managing director of Mortgage Finder. “This is likely due to the downward shift in prices which has made home ownership more affordable and achievable.” Real estate prices in the UAE have remained weak since 2015, according to a report last year from Property Finder. Data from real estate consultancy ValuStrat finds Dubai residential capital sales values decreased by 12.4 per cent and rental values by 9 per cent for the first quarter of this year, when compared to last year. In Abu Dhabi, sales values were on average 12.2 per cent lower than the same quarter last year and rents were down by 6.9 per cent year-on-year. Analysts, however, see a recovery soon as investors continue to take advantage of lower pricing and the economy picks up on the back of stimulus measures by the government. In more than 80 per cent of the enquiries analysed by Mortgage Finder, buyers opted for a fixed interest rate, an unchanging rate that applies for the entire term of the loan or part of the term. However, with recent predictions from the US Federal Reserve that there may be rate cuts this year, Mr Schutrups said, “we are seeing a few more sophisticated buyers opt for lower margin variable rates". With the US dollar tied to the dirham, US Fed rate cuts would result in lower mortgage interest rates in the UAE, making it more attractive for people to refinance existing home loans and take out a variable rate mortgage to pay less interest. The caveat is the 3 per cent early settlement fee introduced by the Central Bank of the UAE last year. Before the fee amendment in June last year, early settlement fees were capped at 1 per cent or Dh10,000, whichever was lower. Mortgage Finder estimates that refinancing transactions and mortgage transfers between banks have reduced considerably as a result. “We estimate that there has been about a 75 per cent reduction in the number of refinancing transactions and buyouts that we do. However, it is worth noting that these only accounted for about 5 per cent of transactions in 2018,” Mr Schutrups said. Some banks differentiate between using cash to settle a mortgage early or refinancing, with a difference of as much as 2 per cent of the outstanding loan amount, according to Mortgage Finder. For example, banks commonly charge 1 per cent when the payment is made in cash upon selling a property versus 3 per cent when settled by refinancing.

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Banks may also charge a higher rate to non-residents or may force buyers to sell their property before leaving the country, said the consultancy, which previously operated as MIBME Mortgage Broker and was acquired by the

Property Finder Group in 2014. On the positive side, some banks allow for penalty-free overpayments of up to 10 to 20 per cent, allowing homeowners the option to pay off their mortgages early. The average length of a mortgage in the UAE is seven years. Mr Schutrups also recommends borrowers ask their lender to consider including the upfront fees required, such as the 4 per cent Dubai Land Department fee and the real estate agent fee, within the mortgage. “Being able to include just 4.5 per cent of the upfront fees into the mortgage can increase buying power by around 18 per cent as more of your cash can be put towards deposit rather than covering the fees,” Mr Schutrups said. Source: The National Back to Index

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STABLE OIL PRICE LIFTS GCC BANKING SECTOR OUTLOOK, SAYS FITCH Wednesday, July 03, 2019 Relatively stable oil price has helped lift the outlook of the Arabian Gulf banks this year, as their counterparts in other emerging markets struggle amid slowing economic growth, with some even facing rating downgrades. “Slower GDP [gross domestic product] growth, greater trade protectionism, currency depreciation against the US dollar and political turbulence are significant risks in several emerging market (EM) banking systems in the near term, with ratings most vulnerable in Turkey and Latin America,” Fitch Ratings said in its latest report on the EM banking sector on Tuesday. Average economic growth in the emerging markets is forecast to soften to 4.5 per cent in 2019 from 5.1-5.2 per cent in 2017 and 2018 respectively, on the back of a slowdown in China and sharp growth adjustments in Turkey and Argentina. However, the overall economic growth is expected to pick up to 4.8 per cent in 2020 in the emerging markets, on policy easing in China and less pressure on EM central banks to raise interest rates, which should help borrowers, Fitch Ratings said. In the six-member economic bloc of the GCC, some banks have faced pressure on asset quality in the past three years as real estate sector in particular softened. However, oil price stability mitigates the risks and all GCC sovereign ratings enjoy a ‘stable’ outlook under Fitch’s rating system, which translates into stable outlooks on most GCC banks’ issuer default ratings. Banking sector consolidation in the GCC, Fitch added, is also set to continue following several high profile banking mergers in the past year as lender seek to gain scale and boost profits amid tougher operating conditions. In May, Abu Dhabi Commercial Bank merged with Union National Bank, and the combined entity acquired Al Hilal Bank as its Sharia-compliant lending unit, creating the third-largest financial institution in the UAE with Dh423 billion in assets. The ADCB deal follows the 2017 tie-up of National Bank of Abu Dhabi and First Gulf Bank, which created the UAE’s biggest banking entity, First Abu Dhabi Bank. Dubai Islamic Bank, the country’s biggest Sharia-compliant lender is the latest in the country to announce plans to merge, with rival Noor Bank. It last month recommended takeover of Noor to its shareholders. Elsewhere in the region, Saudi Arabia’s National Commercial Bank is pursuing its merger with Riyad Bank and Omani lenders Bank Dhofar and National Bank of Oman are also in merger talks. “M&A activity continues in the GCC, where shareholder value can be enhanced as a result of increased competitive advantages, particularly where it creates or strengthens domestic leaders,” Fitch Ratings’ said. However, integration could be challenging, especially where a merger involves both conventional and Islamic banks, it noted. Source: The National Back to Index

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FIRST BANKING M&A WAVE IN GCC SUBSIDES BUT UAE STILL RIPE FOR CONSOLIDATION, SAYS S&P Wednesday, July 03, 2019 The recent wave of mergers and acquisitions in the GCC banking sector is losing momentum, however, the UAE – the second biggest Arab economy and home to more than 40 lenders – is still ripe for consolidation, said the head of Islamic Finance at S&P Global Ratings. “For us, the main reason for why these mergers happened was because there were the same shareholders on both sides of the table," Mohamed Damak told The National, on the sidelines of the London Sukuk & FinTech Summit on Tuesday. "So if you want to guess what will happen next, go and look at the ownership structure of what remains and you can easily determine what's going to happen next,” he said, referring to the common ownership of some of the banks in the country. Common ownership is usually what drives M&A activity in the Arabian Gulf, as shareholders combine two or more balance sheets to create a larger financial institution in a bid to survive an ever-increasing competition in the overbanked and fragmented markets in the region. The merger of Emirates Bank and the National Bank of Dubai to form Emirates NBD years ago (2007) and the more recent creation of First Abu Dhabi Bank, the biggest lender in the UAE by assets, through the merger of National Bank of Abu Dhabi and First Gulf Bank in 2017, are examples of shareholder-driven M&A activity, he said. Abu Dhabi Commercial Bank merged with Union National Bank in May and the new entity took over Al Hilal Bank as its Islamic arm. The newly created ADCB Group, whose shares trade on the Abu Dhabi Securities Market, is now integrating operations. Dubai Islamic Bank, the biggest Sharia-compliant lender in the UAE, is the latest financial institution joining the M&A spree, when it last month said it is acquiring rival Noor Bank. GCC lenders are not only acquiring or merging with their domestic counterparts but also looking at cross-border deals within the region and beyond. Emirates NBD’s plan to purchase Turkey's fifth-largest lender, DenizBank, is one such example, Mr Damak said. “I wouldn't put it in the same basket as all of the other M&As happening currently [in the region]," he said. "The Gulf banks were natural candidates because of some of the economic links between Egypt and the GCC, or between Turkey and the GCC.” The three-year oil slump, when prices fell from the mid-2014 peak of more than $115 per barrel to below $30 per barrel in the first quarter of 2016, has also been factor in the recent M&A drive in financial sector of the region, said Mr Damak. The price of oil rose to breach $80 per barrel last year and currently hovers around $60 a barrel. As the first wave of shareholder-driven M&A subsides, Mr Damak anticipates commercial reasoning to takeover and drive further consolidation in the region, especially in the UAE.

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“The next wave will require more aggressive management, boards and shareholders,” he said, because it would mean convincing family-owned banks to accept the idea of losing majority stakes in their business.

The GCC, he said, has also seen a strong first half for regional debt issuance this year, particularly through Shariah-compliant bonds, or sukuk. S&P is yet to adjust its forecast of $115 billion of sukuk issuance this year, which is amounts to approximately the same as 2018. “If you look at what has been driving this performance, it was more related to Bank of Indonesia starting to use sukuk as a liquidity management instrument, and Turkey trying to open all the financing [options] available, given what's been happening in the country over the past 18 months. We've seen a few private sector issuances in Saudi Arabia, but equally we've seen a drop from Bahrain,” he said. Many issuers, he said, still have a preference for conventional bonds rather than sukuk, that are more complicated to issue. Pricing can also be an obstacle, with many sukuk deals being more expensive to close than traditional bonds, he added. Geopolitical risks in the region are also a factor that have impacted sukuk issuance in the GCC. “We've been seeing not too much geopolitical risk for the last several years in the region, but, now things are starting to change,” he said. Source: The National Back to Index

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UAE DEFINES INDUSTRY SECTORS ELIGIBLE FOR UP TO 100% FOREIGN OWNERSHIP Tuesday, July 02, 2019 Companies and residents on Tuesday welcomed the UAE Cabinet’s announcement of business activities eligible for up to 100 per cent foreign ownership under a law ratified last November, as the country seeks to increase investment from overseas and create jobs for nationals. The list of 122 economic activities across 13 sectors includes renewable energy, space, agriculture, manufacturing, transport, logistics, hospitality, food services, information and communications, and a host of others, according to the UAE state news agency Wam. “Our goal is to open and expand economic sectors, attract new investors and cement the global competitiveness of our national economy,” Sheikh Mohammed bin Rashid, Prime Minister of the UAE and Ruler of Dubai, wrote on Twitter on Tuesday. “Local governments [across the seven emirates of the UAE] will determine the percentage of ownership in each activity according to their circumstances,” he added in the tweet. In certain emirates, some activities could still require an Emirati shareholder, even if the foreign ownership threshold increases. Previously, foreign investors could hold up to 49 per cent of a company registered in the UAE, unless it was in a designated free trade zone, and would have to partner with an Emirati investor who would hold the remaining 51 per cent. Like other GCC countries, which have traditionally relied upon hydrocarbons to empower their economies, the UAE has implemented reforms to strengthen and diversify amid a period of lower oil prices. Reforms include lowering business registration fees to grow the non-oil private sector and introducing a 5 per cent VAT in January last year, under a GCC-wide agreement. The Emirates has also started issuing long-term residency visas to few expatriates to encourage them to stay longer and invest in the country. Special "gold card" permanent visas have been granted to expatriates who have contributed substantially to the UAE economy. The International Monetary Fund in April projected the state's gross domestic product growth to rise to 2.8 per cent this year, up from 1.7 per cent in 2018. Increased construction activity in the run-up to Expo 2020 in Dubai is also set to spur growth. Relaxing foreign ownership rules “is a further measure to liberalise and strengthen the investment environment and will be a critical step in the development of new sectors and industries”, said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “A key objective will likely be areas linked to technologies and ones that will support job creation.” The inclusion of logistics and storage activities in the list will “allow investors to own projects in e-commerce transport, supply chain, logistics and cold storage for pharmaceutical products”, the Wam reported. Professional, scientific and technical activities are also eligible – “which enables ownership of laboratories for research and development in biotechnology”. The list also includes administrative services, support services, educational activities, health care, arts and entertainment and construction.

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In November, when the law was published in the UAE’s Official Gazette, the government announced around a dozen sectors that would not qualify for 100 per cent foreign ownership. Under these are oil and gas, banking, utilities, road and air transport, telecoms and medical retail (including pharmacies). Despite the exclusion, the founding chairman and managing director of one of UAE's biggest pharmacy chains, Aster DM Healthcare, said opening up other industries to foreign investment would bring substantial benefits to the country. “This fantastic move will facilitate more investment by the expat community in the UAE and, more importantly, will encourage many more investors to bring fresh capital into the country,” Dr Azad Moopen said. Paras Shahdadpuri, chairman of UAE conglomerate the Nikai Group of Companies, added: “This has been a longstanding demand of the business community, which felt strongly [about the fact] that when they have invested 100 per cent foreign equity and manage the entire business, they still needed to follow the rule of 49:51 ownership." The UAE has continued to go up in the World Bank’s Ease of Doing Business ranking and stands at number 11 among 190 economies, said Abhishek Sharma, founder and chief executive of alternative investor Foundation Holding in Dubai. “This decision will reiterate the UAE’s position as a haven in the investment community,” he said. Source: The National Back to Index

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SOBHA UNVEILS LUXURY ONE PARK AVENUE RESIDENTIAL PROJECT IN DUBAI Friday, July 05, 2019 Developer Sobha Realty has announced the launch of One Park Avenue, its latest residential tower at the eight million square-foot Sobha Hartland development in Mohammed Bin Rashid Al Maktoum City in Dubai. Sobha said One Park Avenue seeks to "reimagine new-age living through a sustainable lens" and will include 403 one- to four-bedroom apartments. Francis Alfred, managing director and CEO of Sobha Realty, said: “One Park Avenue was born out of our mission to disrupt the status quo in Dubai’s residential market. Surrounded by green spaces and overlooking some of Dubai’s top attractions, the tower will embody the ethos of new-age living in the heart of the city. "Each home will offer a sanctuary with limitless opportunities for the residents to enjoy their preferred lifestyles. Built for tomorrow, the state-of-the-art building will guarantee a wholly future-proof living experience and offer substantial returns on investment.” The apartments are designed to offer noise-cancelling façades and six Sky Gardens that will line the tower, offering landscaped vertical spaces that are ideal for yoga sessions, outdoor cinema viewing, or even double up as a lounge. Dedicated electric car spaces with charging stations will also feature for those keen to embrace green living. The handover of units is scheduled for April 2023, and investors can benefit from a launch payment plan with a five percent booking deposit. Sobha Realty said its latest development addresses the forecast demand for luxury residential properties in Dubai. Source: Arabian Business Back to Index

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ALDAR LAUNCHES RENT TO OWN SCHEME FOR YAS ISLAND RESIDENTIAL PROJECT Thursday, July 04, 2019 Aldar Properties has announced that it is launching a new rent to own scheme for a limited number of homes in its West Yas community overlooking the natural mangroves that surround Yas Island. The scheme will enable customers to build up their home equity over a five-year period while paying AED220,000 in annual rent. One hundred percent of rent payments will be converted into equity in the villa at the end of the five-year period, the developer said in a statement. It added that separate to the rent payments, management fees are set at AED15,000 per year for the duration of the period. Talal Al Dhiyebi, CEO, Aldar, said: “We are launching this specific rent to own scheme in West Yas to enable customers to build ownership in their homes over time. "We know that there is real demand for a rent to own scheme at communities like West Yas, so we are delighted to respond with a product that suits the needs of our customers.” West Yas features over 1,000 four and five-bedroom villas, and offers two schools, three mosques, sports facilities, retail centres, a community centre. Villa handovers commenced in late 2018. Source: Arabian Business Back to Index

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DUBAI LAUNCHES NEW INITIATIVE TO OPEN UP PROPERTY INVESTMENT MARKET Tuesday, July 02, 2019 Dubai Land Department (DLD) on Tuesday announced the launch of a new initiative which aims to attract a wider range of real estate investors to the emirate. Under the Real Estate Investment Opportunities (REIOs) initiative, several investment products will be launched including collective real estate investment funds, partial title deeds procedures to register units owned by a number of partners, a lease-to-own system and investment portfolio applications. A law is currently being drafted for real estate investment portfolios that is still under accreditation and review by the concerned parties, DLD said in a statement. The launch comes as Dubai witnessed an 8 percent increase in real estate transactions during the first quarter of 2019 to AED119 billion compared to the year-earlier period. DLD added that the number of active investors reached 2,800 during the quarter with a "large number of new investors" entering the Dubai real estate market for the first time. Sultan Butti bin Mejren, director general of DLD, said: “We are proud to launch a new investment package that enhances the attractiveness of Dubai’s real estate environment, reaching a wider horizon of global leadership through which we will formulate new visions, especially with Expo 2020 around the corner. "Unveiling REIOs reflects the positive impact of innovative ideas in the real estate sector.” A special office has been approved at DLD to facilitate and unify all registration and follow-up procedures for this initiative, he added in a statement. DLD said it will also approve a set of special privileges relating to real estate registration and its terms, and a special electronic contact website will be established. Marwan bin Ghalita, CEO of Real Estate Regulatory Agency (RERA), said: “This initiative will help us emerge from the traditional patterns of property buying, selling, and registration. These processes require us to embrace technology and change, both of which paved the path to launching real estate products with the participation of developers to attract new investors. "Previously, the real estate market targeted a certain class of investors - the wealthy. Today, however, through these four products, we seek to cover a larger segment of investors, both inside and outside the UAE, and allow them to own properties in Dubai and benefit from high returns on investments.” Source: Arabian Business Back to Index

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BAHRAIN'S INVESTCORP SEALS $96M DEAL FOR GERMAN PROPERTY Thursday, July 04, 2019 Bahrain-based Investcorp has announced it has completed the acquisition of Airport Centre, a multi-let office and light industrial property located in Hamburg, Germany for about €85 million ($96.6 million). The acquisition is Investcorp’s fourth real estate investment in Germany in the last 12 months and brings itss total European real estate assets under management (AuM) to over €500 million. Airport Centre has 35,000 sq m of lettable space, of which 75 percent is office space and 25 percent light industrial and currently houses 32 tenants. The purchase of Airport Centre closely follows the acquisitions of office buildings located in Stuttgart, Eschborn and Niederrad, bringing Investcorp’s total AuM in Germany to about €325 million. This is in addition to the acquisition of 27 logistic and light industrial assets in the UK over the past two years. Hazem Ben-Gacem, co-CEO of Investcorp, said: “This acquisition reflects our ability to identify great opportunities across the European real estate market. Moreover, we see the continued growth of our European real estate portfolio as key to realizing our strategy and mission to provide global investors with a vigorous and diversified portfolio of lucrative alternative investments.” Babak Sultani, managing director, Real Estate Product Specialist at Investcorp, added: “In Europe, we will continue our focus on sourcing income generating multi-let assets, primarily in the UK, Germany, France, Denmark and the Benelux market, with a preference for office and industrial assets.” Source: Arabian Business Back to Index

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EXPO 2020 WILL DELIVER 'HUGE CHANGE' TO UAE ECONOMY, SAYS DANUBE BOSS Saturday, July 06, 2019 Expo 2020 will signal a ‘huge change’ in the UAE economy, according to Danube Group chairman Rizwan Sajan. The global event is set to kick off on October 20 and run until April 10 2021. During that time, the UAE is expected to welcome up to 25 million visitors to the region. And Sajan told Arabian Business the investment potential from the additional visitor numbers over that six-month period, was massive. He said: “I’m very optimistic about Expo. If you are talking about 20-25 million people coming to this part of the world and if you look at the track record from the places where Expo has been previously held, Shanghai and Milan, the economies of those particular cities shot up. Here also. When you’re talking about 20-25 million people coming, I’m expecting 10 percent of those will show interest in investing in the UAE, which is about 2-2.5 million people. Out of that, only 10 percent will invest, 10 percent will show interest, but only 10 percent will actually invest. So about one percent of the total number of visitors will actually invest. “We’re talking about 200-250,000 people coming and investing in this part of the world. That’s going to be a huge change in the economy.” Global consultancy EY’s published a report earlier this year, which said from the time the Expo bid was won in November 2013, right through to a decade after Expo’s doors close, $33.4 billion (AED122.6 billion) will have been contributed to the UAE economy, supporting more than 900,000 full-time equivalent job-years across a wide spectrum of business sectors. Direct and indirect investment in buildings, infrastructure and other assets will reach more than $10.9bn (AED40bn) over 2013-2031. While, during the six months of the World Expo, with the huge swathe of visitors spending money on tickets, merchandise, accommodation, transport and food, Expo 2020 will account for 1.5 per cent of GDP. This EY report also said activity worth $17bn (AED62.2bn) would be sparked in the decade following the event, the lion’s share in the events and business services sector. Sajan, whose company has just launched the $5 million Danube Hospitality Solutions venture, aimed at catering to the growing hospitality needs of the region, said there was much to look forward to. “I expect people from all over the world and the UAE is such a lovely place that anybody who comes here halls in love with the place. I’m sure as we enter Expo 2020 we’ll see a big turnaround in numbers,” he said. Source: Arabian Business Back to Index

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WORK STARTS ON PHASE 2 OF DUBAI AUTODROME BUSINESS PARK Friday, July 05, 2019 Union Properties has announced the expansion of Dubai Autodrome Business Park project in Dubai MotorCity, with a total investment of AED25.5 million. Work has commenced on the second phase of Dubai Autodrome Business Park, a purpose-built facility for racing teams and other motorsport related businesses. Scheduled for completion in February 2020, the second phase has already secured 100 percent bookings ahead of construction, the developer said in a statement. Spanning an area of 33,900 square feet, phase 2 of the project will be located next to the existing phase 1, close to the 5.39km race circuit at Dubai Autodrome. The first phase comprises of a 54,000-square-foot facility with 12 unique units catering to automotive, racing- and motorsports-related businesses. Ahmad Ibrahim, marketing and communications director at Union Properties, said: “As part of our development plans for our MotorCity phase 2, we are proud to announce that work on the expansion of the Dubai Autodrome Business Park has commenced. "We have seen substantial interest during the launch of the first phase and the second phase of the project will be a continuation of Union Properties’ successful destination-led strategy that has already secured a 100 percent booking of all our units.” Dubai MotorCity Business Park phase 1 is home to major car racing brands such as Lamborghini Trofeo and Porsche, among others. Faisal Al Sahlawi, general manager, Dubai Autodrome, said: “Dubai Autodrome’s vision is to continually support the motorsport industry in the UAE and region, and this project showcases our commitment to bringing to market relevant services and products that answer a strong need within the ecosystem. The expansion efforts are propelled by keen market demand for our products and the undeniable success of phase 1 of the Business Park.” MotorCity encompasses six projects, each with its distinct environment, including Avenue District, Dubai Autodrome, OIA Residence, Uptown MotorCity, Green Community MotorCity, and Business Park MotorCity. Source: Arabian Business Back to Index

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TENDER ISSUED FOR WORLD'S BIGGEST SOLAR PROJECT IN ABU DHABI Thursday, July 04, 2019 The Emirates Water and Electricity Company (EWEC) has issued a tender for the construction and development of a new 2,000MW solar photovoltaic power project in Al Dhafra, Abu Dhabi. The new project forms part of a series of projects approved by the higher Committee for the Water and Electricity Sector in Abu Dhabi, state news agency WAM reported. Once completed, the project site will cover an area of approximately 20 sq km, almost doubling the capacity of the current largest operational single-site solar PV plant in the world, Noor Abu Dhabi. The new project is expected to achieve commercial operations during the first quarter of 2022, upon which it would take Abu Dhabi's total solar capacity to 3,200MW. The tender announcement follows the receipt by EWEC earlier this year of 48 expression of interests from international and local developers. Successful bidders would hold a 40 percent equity stake in the project, with the remaining stake held by local entities. Othman Al Ali, CEO of EWEC, said: "The new solar project in Al Dhafra marks yet another milestone in EWEC’s commitment to the UAE Energy Strategy 2050, which aims to increase the contribution of clean energy as part the country’s overall energy mix. "The strong interest expressed so far illustrates the attractive business model and reaffirms the strong case for investment in UAE’s renewable energy sector." Source: Arabian Business Back to Index

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BUILDER PICKED FOR NEW DUBAI CRUISE TERMINAL PROJECT Tuesday, July 02, 2019 UAE-based construction group ASGC has been appointed to build the new Dubai Cruise Terminal at Dubai Harbour, the first dedicated cruise port in the region. Located between Bluewaters and Palm Jumeirah, Dubai Cruise Terminal will become the main hub for international cruise ships visiting or deployed in the region and is part of Dubai Harbour, the maritime neighbourhood being developed in the emirate. Work conducted by ASGC on the project will include the construction of two main cruise terminal buildings on a 1km quay in addition to service buildings, a central unit building with all associated fit-out works, external works, and all fixtures, fittings and equipment. Bishoy Azmy, CEO of ASGC, said each cruise terminal will create an environment of "complete luxury and comfort" for passengers and crew alike, with leisure and retail offerings. According to the Cruise Lines Industry Association, more than 40 million people worldwide will be traveling on cruise ships annually by 2030, representing a 40 percent increase from 2017. The UAE's maritime tourism sector is expected to contribute more than AED1.5 billion to Dubai's economy by 2030. Source: Arabian Business Back to Index

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REVEALED: HOW DUBAI CANAL MARINE TRANSPORT WILL LOOK IN 2030 Friday, July 05, 2019 Dubai’s Roads and Transport Authority (RTA) has endorsed a three-phase 10-year plan to improve marine transport services on Dubai Water Canal. The 2020-2030 plan envisages upgrading marine transit services to keep pace with the urban development on the two shores of the canal. The initial phase, which is already underway, includes modifying the current marine transport line on the canal to link Jaddaf, Dubai Design District and Sheikh Zayed Road Stations. The revised line excludes Marasi Station and endorses the deployment of the Water Bus instead of Dubai Ferry to run the service while the Water Taxi service at these stations remains unchanged. Mohammed Abu Bakr Al Hashimi, director of Marine Transport at RTA’s Public Transport Agency, said abra service will be running on two new lines to commute riders between the Al Wajeha Al Maeyah, Marasi and Sheikh Zayed Road Stations. "By 2020, marine transit modes will be beefed up to include two water buses on the revised line, and three abras on the new line. The plan contributes to shortening the service frequency and meeting the needs of riders on these lines." The second phase to 2025 covers the operation of nine stations in the central sector of the canal over and above the existing stations, which will be served by five new lines. It involves modifying the current line of the Water Bus to serve two stations, namely Dubai Creek Marina Station and Business Bay Promenade Station, while one Water Bus and five abras will be added in 2025 and 2026, added Al Hashimi. The third phase includes the addition of four stations on the Dubai coastal line - Jumeirah 2, Al Safa 2, Sheikh Zayed Road 2, and Godolphin, served by one waterbus and two ferries that will bring the total number of water transport modes in the network to four waterbuses and 10 abras by the end of the plan. “The improvement of water transport services on the Dubai Water Canal is linked to the projected development on the shores of this vital facility. The plan has been conceived following the assessment of the current services and the listing of marine transport assets and lines,” said Al Hashimi. Source: Arabian Business Back to Index

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WALDORF ASTORIA HOTEL OPENS ITS DOORS IN DUBAI'S DIFC Saturday, July 06, 2019 Waldorf Astoria has opened a new hotel in Dubai International Financial Centre (DIFC), its third property in the UAE, Hilton has announced. The 275-key hotel occupies the 18th to 55th floors of the Burj Daman complex. Of the rooms, 46 are suites and 28 are residential suites which offer unobstructed views of the Downtown Dubai skyline. “We are delighted to expand our luxury presence in the region with the opening of Waldorf Astoria DIFC, which is located in an important economic hub within the region,” said Rudi Jagersbacher, Hilton’s president for the Middle East, Africa and Turkey. The addition of the Waldorf Astoria to DIFC comes at a time in which the area is rapidly expanding, with an additional 13 million sq ft to be developed following Dubai Ruler Sheikh Mohamed bin Rashid Al Maktoum’s announcement of the launch ‘DIFC 2.0’ earlier this year. The hotel – which was inspired by the architecture and style of the 1960s – also includes a number of F&B options, including Waldorf Astoria’s signature Pull & Bear, as well as a French Riviera-inspired rooftop and a separate lounge and bar. The property also features a spa and a “library concept” which houses an open kitchen. “We are thrilled to bring Waldorf Astoria to DIFC and offer True Waldorf Service in such a thriving and dynamic within the city,” said Dino Michael, the global head of Waldorf Astoria Hotels & Resorts. Waldorf Astoria also operates the Waldorf Astoria Dubai Palm Jumeirah and Waldorf Astoria Ras Al Khaimah. Source: Arabian Business Back to Index

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NAKHEEL SET TO OPEN OBSERVATION DECK ABOVE PALM JUMEIRAH Friday, July 05, 2019 Developer Nakheel is adding another landmark attraction to Dubai with The View at The Palm, a public observation deck towering 240 metres above the world-famous Palm Jumeirah. Accessible from Nakheel Mall, the observatory will offer spectacular views of The Palm, the Arabian Gulf and the Dubai skyline, a statement said. The View at The Palm, for which a fit out contract was signed last month, is perched on the top level, 52nd floor of The Palm Tower, at the heart of the island. The observation deck, which includes a VIP lounge and areas for private events, is nearing completion, the developer added. Omar Khoory, managing director of Nakheel Malls, which will operate the attraction, said: “The View at The Palm will combine awe-inspiring, breath-taking views with an interactive, educational experience about the creation of the iconic Palm Jumeirah. This stunning new attraction – the only location in Dubai offering this unique experience – will be a magnet for residents and tourists.” Visitors to The View will start their journey at the roof plaza of Nakheel Mall, where they will find an interactive museum and gallery dedicated to the creation of Palm Jumeirah. From there, an elevator, complete with a floor- to-ceiling digital sea, sand and sky experience, will take them on the three minute ascent to the observatory at the top of The Palm Tower. Visitors to The View will be able to buy tickets for a day or night experience. The Palm Tower comprises a St Regis hotel and luxury residences, with a rooftop infinity pool and restaurant underneath the viewing deck. The tower is directly connected to Nakheel Mall, which is due to open later this year. Nakheel Mall has 350 shops, restaurants and attractions and its own Palm Monorail station. Source: Arabian Business Back to Index

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NRIS DRIVE INDIA’S LUXURY REAL ESTATE BOOM Saturday, July 06, 2019 India’s luxury property market may not have been very attractive to resident Indians in the recent past — but it scores high with the NRIs due to their greater buying power. Multiple factors draw their attention. For one, it promises a high standard of living to them if they chose to return to their country of origin. And second, the rentals can be decent if the property is located in a prominent employment hub. This segment has also not seen the kind of huge unsold inventory witnessed in mid-income housing, largely because builders consciously restricted new supply over the last couple of years. As per recent research, the overall unsold inventory of luxury homes — priced between Rs15 million (Dh804,800) to Rs25 million — declined to 42,650 units in the first quarter from 48,300 units in 2018. Bengaluru led from the front, recording a significant 49 per cent reduction in unsold luxury stock within a year. It was followed by Kolkata with a 37 per cent decline. Concurrently, unsold stock in the affordable segment saw an increase of nearly 3 per cent as maximum new launches catered to this segment during the period. One major feature distinguishing luxury and ultra-luxury properties between various cities is its price range. For instance, properties priced greater than Rs15 million are considered ultra-luxury in Bengaluru while in Mumbai properties priced above Rs40 million fall into this category. With the resurgence of the Indian economy and the ongoing construction activity in this segment, there has been a concurrent rise in both end-user and investor demand for luxury real estate. Anarock Research states that the returns on investment for luxury and ultra-luxury homes is around 3-5 per cent and 2-3 per cent, respectively. This may not look handsome at the moment, but high net worth investors are nevertheless refocusing on this segment for three reasons — NRIs’ predilection towards an aspirational lifestyle, the potential for better returns when market rebound meets restricted supply in luxury areas, and the fact that price points of most luxury properties are at their lowest, with developers additionally offering lucrative deals. The most convincing incentives for NRIs to invest in luxury and ultra-luxury properties are: ▪ Higher potential for capital appreciation for properties located in prime areas; and ▪ Higher and steady cash flow (via rental income) of properties in prime areas as against affordable housing in far-flung areas. Our consumer sentiment survey also indicates that 28 per cent of NRI respondents are looking to buy luxury and ultra-luxury properties across cities. The perennial favourite of several NRIs, the luxury segment saw a declining interest post the reformatory changes in the real estate market. While the segment didn’t witness major corrections over the last two to three years, there was no hike either. Many luxury properties are now selling at their lowest-ever prices. The survey also indicates that 31 per cent NRIs currently prefer to invest in a property in Bengaluru. The Mumbai Metropolitan Region is not far behind — it has also seen decent new supply in the luxury and ultra-luxury segments over the last five to six years. Pricing dynamics

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The pricing dynamics for luxury housing vary across the top residential markets. For instance, property prices in luxury and ultra-luxury segment in Mumbai Metropolitan Region range between Rs40,000-Rs90,000 per square foot on carpet area, while in Delhi’s NCR, they hover between Rs12,000-Rs20,000 on built-up area. In Bengaluru, prices range between Rs7,500-Rs14,000 per square foot on built-up area. Trends indicate that average property prices across these segments have largely remained stagnant across cities over the last few years. There has been neither any major fall nor rise in prices in this segment. Investment rationale Historically, NRIs typically bought luxury homes either for good RoI (Return on Investment) or for their self-use. After a prolonged wait-and-watch period post the recent reformatory changes in the Indian real estate market, the trend is now decidedly skewed towards personal use. As always, they have an eye open for attractive capital appreciation — luxury properties have an edge as the incremental value is higher than affordable or mid-segment properties if prices appreciate. Shajai Jacob is CEO — GCC at Anarock Property Consultants. Source: Gulf News Back to Index

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PARTIAL TITLE DEEDS LAW OPENS UP INVESTOR POOLS FOR DUBAI Thursday, July 04, 2019 Dubai’s real estate market has already welcomed cash-ready investors and end users. Now, it is targeting a relatively new set of buyers — those wanting to pool funds and share ownership in a property. So, whether the investor puts in a few thousands of dirhams or a million or more, his share in that property will get duly recognised … officially. While this helps with the ease of buying, partial deeds can also help on the selling. The individual could dispose off his share and not be bound whether other investors agree or not. This is essentially what having “partial” title deeds will allow, whereby each investor in that property will have their rights recognised by the Dubai Land Department. Dubai’s authorities are also looking at the bigger picture with this option, at a time when thousands of homes are being delivered. The thinking is that by extending official recognition through title deeds, more investors will come together to pick up residential units. There have been one or two efforts to “crowdfund” investments in local real estate, with minimum entry as low as Dh5,000. Such online platforms should now find it easier to convince potential investors that their investments will be duly registered. Right now, the Land Department says these partial deeds will only be extended to hotel/serviced apartments. But industry sources say that it could only be a matter of time before the scope is widened — “We believe there is a review underway to allow it for other property forms,” said Sameer Lakhani, Managing Director at Global Capital Partners. “Serviced and hotel apartments are already popular as investments, and the Airbnb effect will make them more popular for short-term rentals. This is what a pool of buyers could cash in on.” At the official announcement, a senior Land Department official did indicate that partial deeds could eventually be opened up to other property types. “A unified system means equal ownership of properties between two to four investors, and will initially be available for hotel facilities,” said Majid Saqr Al Merri, CEO of the Registration and Real Estate Services. “As for registration legislation, we will employ the existing ones.” Between 2013 to 2017, there were quite a few projects launched in Dubai that offered serviced apartments. Emaar had its Address developments, Damac launched the “Maison” line, and Omniyat went big at its Dh1 billion Langham Place project in Downtown. Nakheel’s got a twin-tower project in its project pipeline — the Palm360 — where one of the buildings will feature super-luxury serviced apartments managed by Raffles. These aren’t the only ones, as developers target Saudi and other Gulf investors wanting to have a base here. They have also released projects at lower price points, of under Dh1 million. Now, with partial title deeds on offer, these developers will be able to pull in a different sort of buyer … or buyers. Partial title deeds — who are they for? Clearly, for the wealthy picking up property for investment purposes will have no need for partial deeds. Even end users will prefer tapping banks for mortgages or sign up for the post-handover payment plans developers have on offer. But between these two buyer profiles lie untapped opportunities. “In other real estate investment destinations, standard practice instead of partial deeds is for the pool of buyers who come together to set up a company structure, which then acquires the property under its name with the

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individuals as shareholders of the firm in agreed proportions,” said Taimur Khan, Associate Partner at Knight Frank, the consultancy. “Dubai’s testing relatively unchartered waters with partial deeds.

“For international investors who have to decide between a London, New York or Dubai property, partial ownership may not have many advantages. However, if the plan is to attract investments from broader segments, this may induce demand … albeit it’s likely to be limited.” Investors benefit from lower transfer fee payments On one point, partial deeds offer a distinct advantage to the cost-conscious investor. Earlier, if someone wanted to sell off his stake, he would have had to pay the 4 per cent transfer fee on the entire value of the property. Now, under the partial deed structure, “The transfer fee would only be levied on the fraction of the property being sold,” said Lakhani. “This in itself represents a major incentive for property buying.” DUBAI SPEEDS UP REAL ESTATE REFORMS * As per estimates, there have been 43 projects launched in Dubai that were classified as hotel/serviced apartments. Together, they totalled 16,000 units, of which Emaar’s share would be around 25 per cent. Source: Gulf News Back to Index

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DUBAI’S SHORT-TERM RENTERS NEED HOMEOWNERS’ BACKING Thursday, July 04, 2019 Following the regulation permitting property owners in Dubai to license their residential units as holiday homes, these can be rented out from a few days to a week or two. While the trend is riding a wave, local owners associations (OAs) have to ensure that they work together with building managers on selecting vacation rental firms that are allowed to operate in their buildings. Each owners association should outline a set of rules that dictate clear pre-requisites, including the need for trained staff, adequate technology support, and transparency in guest screenings. They should dictate the minimum prices that units can lease for — this helps keep away unwanted guests and also helps to keep a check on potential challenges in managing a short-term rental. In addition, only companies that understand the ethos of building management and its rules should be shortlisted. A tendering process, where the property management firm needs to apply, must also be implemented. In addition, OAs can charge a fixed fee on vacation management firms, which can even be slightly higher than what they charge full-time residents. While OAs have to be careful in choosing the right vacation rental firms, it is equally important that holiday homes companies also research about how OAs operate. If you find that a lot of people in a particular residential community are operating short-term rentals that are not in compliance with rules, it’s a sign of an unstable OA. While it may seem like an opportunity to get in, it’s far more important to consider the stability of the OA and how any future changes could affect the reputation of your company. In recent years, renting residential units on short term have reaped several benefits for property owners as well as the buildings. It has not only brought the general maintenance costs down, but also ensured that the facilities, which remain unused for most of the year, are in use. It has created a liquidity in the property market, which has otherwise been quite slow. In addition, a good yielding property in a building increases the value of other properties. That’s not all, high-profile buildings that attract high-profile guests have converted them into potential buyers as well. Overall, renting on a short-term basis is a great mechanism to generating steady income for the property investor, as well as generate income for the building’s facilities, including restaurants, retail, etc. When the market keeps experiencing highs and lows, a short-term rental model is a lucrative method to invite investors to purchase properties and earn a sustainable yield. Source: Gulf News Back to Index

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DUBAI RESIDENTS REVEAL THEIR PROPERTY PRIORITIES Thursday, July 04, 2019 “I always like to say that we build real homes for real people and that if you focus on the customer then everything else falls in line,” says Robert Booth, Co-founder and Managing Director of Ellington Properties. The Canadian businessman has a wealth of experience in the Dubai property sector, having previously held senior roles at Emaar Properties, bringing more than 40,000 residential units to the market. But what do the real people Booth refers to truly want when looking for a property? Dubai resident Hfu Reisenhofer – a Communications Manager from Austria – says that the lifestyle attributes of a property are an important factor. “I look at the environment and the amount of greenery as well as the safety and the amount of traffic, as we have two young daughters,” he says. “We have our own garden but additional green spaces are always a bonus. There is also a playground, which is a good thing and my wife and I take advantage of exercise classes, so it’s good if they’re available nearby.” While, like most residents, Reisenhofer says that affordability is important, the convenience of a property’s location is also a significant factor. “The proximity to my elder daughter’s school is a big issue because we don’t want to have to drive too far and for too long in the mornings,” he says. Kamakshi Gupta, a Communications Officer from India, says that the community itself is an important part of her property choice. “Where I live, there are a lot of families with young kids. I would rather be in an area where there are other families with young children and amenities like playgrounds and swimming pools because it becomes easier for my child to go out and interact with kids his age,” she says. For Athina Simeonidou, a Creative Director from Greece, transport infrastructure is top of her agenda when she’s selecting a home. “My first priority is transportation links as I don’t drive and it’s also important for me to be close to shops and supermarkets,” she says. “My next priority is green spaces and areas that I walk around as well as amenities such as swimming pools.” According to Robert Booth, green space and a sense of community are one of the key elements of his company’s developments, including its latest project – Wilton Park Residences in Mohammed Bin Rashid Al Maktoum City. “We like the concept of inside and outside living, both within your own apartment or home and even within the amenities. We like to be generous with both indoor and outdoor amenities,” he says. The latest Ellington Properties development comprises 12-storied twin towers, offering a choice of studios, one- and two-bedroom apartments. It is surrounded by parkland and each residence offers floor-to-ceiling windows, good-sized balconies and direct access to outside space. The generous outdoor amenities Booth refers to include an Infinity Pool, Zen Garden and yoga areas and residents also benefit from an indoor children’s play area, a state-of-the-art gym and large communal spaces. From speaking to Dubai residents, their homes’ proximity to amenities such as schools and shops was a recurring theme – a fact recognised by Booth and his team. In fact, Wilton Park Residences is located just five minutes from Downtown Dubai and Dubai Mall, six minutes from DIFC and less than 15 minutes from Dubai International Airport. It is also just one minute away from Sobha Hartland International School, so it’s not only safe for kids but it ticks that all important box of being in close proximity to a good-quality school.

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Source: Gulf News

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AS ABU DHABI OPENS FREEHOLD TO EXPATS, WHERE SHOULD YOU BUY YOUR HOME? Tuesday, July 02, 2019 In April, the Abu Dhabi government changed its real estate laws allowing foreign nationals to own freehold property in designated investment zones, a privilege that was previously enjoyed only by the UAE and Gulf Cooperation Council (GCC) nationals. Foreign property investors in Abu Dhabi were previously only granted leasehold ownership with a maximum 99-year term. “On a broad scale, we expect this to greatly impact overall market sentiment in the capital’s real estate sector,” said Nick Witty, managing director of Chestertons Middle East. “This new initiative will also help to close the gap between the Abu Dhabi and Dubai property markets, as expatriates in Dubai are already allowed to buy freehold real estate.” Ian Albert, head of research, valuation and advisory at Colliers International Middle East and North Africa (Mena), believes “it would require two to three quarters to see its full effect”. However, projects launched in Abu Dhabi during the first quarter have already begun to see heightened interest. Azure Al Reem, a ready-to-move-in freehold waterfront apartment complex on Al Reem Island, claims to have received over 2,000 enquires over the first month of its launch. “It is a very strong indicator that there is currently an appetite in the market for affordable home ownership options,” said Ziad Abou Nasr, director of Masaood Developments. Furthermore, this comes on the back of the success of projects such as Aldar’s Alreeman in Al Shamka, an investment zone close to Abu Dhabi Airport. The project sold out within a few days of its launch, generating Dh1.6 billion in sales. “With these figures in the public domain, we expect other developers to take advantage of this new law to generate interest among an expanded demographic of buyers,” said Witty. Source markets The opening up of freehold ownership to foreigners will give homeowners greater security, hence, driving the number of property owners as opposed to renters. However, Nasr points out that introducing freehold alone will not be enough; developers will have to build the right product at the right price. Aside from local and regional investors who comprise the majority of purchasers, Albert also expects to see interest from owner-occupiers living and working within Abu Dhabi. “Whereas the non-regional source markets are expected to be from Europe and non-GCC Arab states,” he said. The new initiative will also help in bringing a more diverse set of investors to the table, while also strengthening the hold on existing ones. “We already know that some of the major foreign real estate investors in the UAE include Indians, Pakistanis, British, Chinese, Canadian and Russians, and we would expect interest to continue to be generated by these categories,” said Witty. Locations

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The Urban Planning Council’s recently released list of designated investment zones where non-GCC nationals can purchase freehold property includes Raha Beach, Reem Island, Al Reef, Lulu Island, Saadiyat Island, Yas Island,

Saih As Sidirah, Masdar City, Al Maryah Island, Al Falah, Fahed Island, Hiid Al Saadiyat, Al Jurf, Ghantoot, Nurai Island, Jubail Island and Al Shamkha. While this spans a range of areas and covers high-end to affordable housing, Witty said lower ticket prices and flexible payment plans will continue to be a key strategy for developers. According to Savills’ Katie Burnell, who also heads sales for Azure Al Reem project, the strongest areas of investment into Abu Dhabi are currently within the affordable or super-luxury sector. “We have noted interest and major growth in areas with new innovative developments in the market where the recently amended freehold law is applied, such as on Al Reem and Al Saadiyat Islands in Abu Dhabi,” she said. However, Albert points out only three affordable projects had been launched over the past year: two in Reem Island and one announced but not yet launched in Masdar City. Moving forward, Nasr says developers will look to introduce a greater variety of freehold properties positioned at the mid-market. “They will be accompanying that with a wide range of ownership models that allow buyers a greater choice to turn their accommodation costs into equity,” said Nasr. Source: Gulf News Back to Index

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POST DUBAI EXPO 2020, THE FOCUS WILL BE ON SUSTAINING GROWTH Saturday, July 06, 2019 There is plenty of speculation around Expo 2020 in terms of how much it will spur the real estate market in Dubai, if at all. Expo 2020 is perhaps the biggest event the UAE has ever hosted and judging from the anticipated after-effects and heightened awareness the event will bring, particularly in a city that has generally outpaced development predictions, it should come as no surprise to anyone that the effect will be profound. Based on projections with respect to the Expo as well as tourism targets, the government has estimated future requirements at about 160,000 hotel rooms. As per the Dubai Tourism website, the supply as of April stands at 118,500 rooms. In addition, there are approximately 6,000 active Airbnb listings on their website. A further 25,000 hotel/hotel apartment units are due to be delivered by 2020. It is important to note that Dubai isn’t just building solely for the Expo. The city is building to keep up with its own growth. The Expo should be viewed as a major stimulus in achieving long-term growth aspirations. Once you factor in the growing number of tourists and the increasing population, which is expected to reach 5 million people by 2027, it becomes apparent where the demand for real estate would emerge from. The construction sector has consistently been one of the biggest contributors to Dubai’s GDP, accounting for Dh24.6 billion or 6.3 per cent in 2017. Unsurprisingly, the government has forecast that the GDP will increase from an anticipated 2.1 per cent this year to 3.8 per cent in 2020, followed by a drop to 2.8 per cent in 2021. This sizeable increase will be due to the influx of visitors during the Expo event and the direct, indirect and induced impact that this will bring to the GDP. The only time the GDP actually dropped compared to the previous year was in 2009 as a result of a major global crisis. While the growth rate may moderate following the Expo year, it is certainly expected to continue to grow. The other question is one of the impact the event will have on other industries. The spike in anticipated number of visitors during the Expo year will inevitably have a knock-on effect on other sectors. As per an economic impact assessment conducted by consultancy firm EY, the event will contribute an additional 1.5 per cent to Dubai’s GDP. Local banks will continue to be involved in a variety of real estate related projects. We often provide asset-backed finance on operational assets based on their income generating potential but are increasingly also involved in construction finance. Sustainability beyond the Expo is a widely debated and speculated subject. All major indicators — including GDP, population, geographical footprint and tourism inflows — indicate a growth trend. Notably, the government has recognised that major events such as the Expo, the Olympics and the Fifa World Cup often lead to massive amounts of investment, which is then left neglected and abandoned in the years to come. A legacy programme has thus been created which will ensure that approximately 80 per cent of the Expo’s buildings and structures will be incorporated into a new business zone called District 2020, with major corporations such as Accenture and Siemens said to be confirmed as major tenants.

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Additionally, another major exhibition centre will be created at the site to host other major events. However, there remains the risk of debt repayments owed by government-related entities, which is estimated at $60 billion, about half of which is due by 2021. In the short- to medium-term, the real estate sector’s contribution towards the GDP is expected to remain consistent. The economy, and especially the real estate market moves in cycles. A number of factors have contributed to the slow down over the last three to four years, including a stronger dollar, lower oil prices, political headwinds, regional instability, fear of oversupply, negative sentiment, etc. It is important for one not to always compare to the peak of the cycle. To compare GDP growth, property prices, job creation, license issuances, property sales, etc, to its highest point is bound to create negative sentiment. If assessing long-term averages and absolute figures, the relatively modest growth that is anticipated in the years to come will start appearing to be the new normal and more importantly, will be more sustainably achievable. Naturally, the government will have an important role to play. Reforms are an ongoing theme in this market. The several government initiatives during the early years in the 1970s to the present day have been significantly impactful. Some recent and ongoing reforms to stimulate the market and make it more attractive for businesses and people to relocate here include an aim to make the city more affordable, ease the issuance of business licenses, enable the issuance of long-term visas, the creation of various incubators to encourage start-ups and the knowledge economy, as well as softer initiatives such as creating an environment of tolerance where all nationalities and backgrounds are welcome to conduct business and live in cohesion. That said, since the city, the country, the region and the construction sector are constantly evolving, it is important to keep pace with required changes. Dubai has regionally been the most active and most progressive city in this regard. Going forward, the existing relationship between the public and private sector may be enhanced to create and exchange new ideas, improve transparency, implement best practices and embrace technological disruption in order to ensure greater relevance, integration and continual progress. This, in my view, will ensure growth in 2020 and beyond. Zain Qureshi is Managing Director and Head of Real Estate Finance and Advisory, Mashreq Bank. Source: Gulf News Back to Index

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YIELDS ARE IN INVESTORS’ FAVOUR IN DUBAI REALTY Tuesday, July 02, 2019 Yes ... Dubai’s real estate continues to give its investors the best deals. The mid-market residential community, which accounted for more than 20 per cent of the 5,000 new homes that were completed and handed over during the first six months of the year, is proof to this fact. As per the latest stats, the value of the total real estate transactions surged by 33 per cent to more than Dh34 billion during the first five months in comparison to Dh24 billion last year. Again, reports suggest that the emirate’s property market didn’t slow down even during Ramadan, a period typically marked by lower sales. Dubai witnessed 3,089 transactions during Ramadan this year, a jump over the 2,684 transactions during a similar period last year. Property deals amounting to Dh5.6 billion were accomplished between May 5 and June 3 this year. All these developments are enough to suggest that the local real estate sector continues to be investor friendly. In a demand-driven market, there is nothing called an ideal situation. However, investors must try to build a unique property portfolio that allows continuous long-term growth and re-investment rather than just short-run hits. While making such investments, an investor should be clear about prospective clients, aware of end users, the expat possibilities, long-term investors, and also first-time buyers. It is also important that investors do business with developers that have the ability to deliver on time. Residential and commercial properties, with deals touching Dh17 billion during the first five months, remain the best bets for investors at any given point of time. Transactions involving land purchases reached Dh14 billion between January and May. With that being said, buyers continue to remain interested in villas, with transaction values reaching up to Dh3 billion during the period. For better returns, investors should have a good idea of properties available in any given market. It allows them the flexibility to resell whatever is in demand at that particular point in time. Yields are stacking up nicely Over the years, affordable real estate witnessed considerable growth with developers prioritising the construction of more such units. Moreover, investors who don’t intend to live in the purchased properties are buying them to take benefits from Dubai’s — still — relatively high rents. At present, the return on investment (RoI) for residential property in the emirate stands at around 6-8 per cent, which is much higher than many other cities. A similar property, according to the latest report by Moody’s Investors Service, fetches less than 2 per cent in Hong Kong while in London and Singapore, the RoI veers between 3.7-4.5 per cent. The Expo 2020 will be adding to the confidence of real estate investors. Massive marketing campaigns to promote the Expo is likely to benefit the emirate for a long time. Market players are expecting additional demand and capital appreciation during and after the show, which is expected to woo 25 million international visitors. They will get a chance to ponder over the opportunities to relocate and settle in Dubai, thus attracting a new set of residents to the city. Considering all these factors, investors remain optimistic and are increasingly putting up their money with their eyes set on the return on investments in about a year.

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In other words, purchasing property now would have investors wait for a short period to get good enough returns.

Kalpesh Kinariwala is Chairman of Pantheon Group. Source: Gulf News Back to Index

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ICD BROOKFIELD PLACE: THREE TENANTS SIGN LEASE FOR A COMBINED 55,000 SQUARE FOOT SPACE Monday, June 24, 2019 ICD Brookfield, has signed three pre-let agreements for a total of 55,000 square feet at ICD Brookfield Place in Dubai. Julius Baer, the Swiss wealth management group, Natixis, the international corporate and investment banking, asset management, insurance and financial services company, and a global law firm have all agreed to terms in the development. ICD Brookfield Place is a 1.1 million square foot commercial development, designed by world-renowned architects Foster and Partners, scheduled for completion in 2019. The property will be managed by Brookfield Properties and includes 990,000 square feet of office space alongside 140,000 square feet of retail space. Located in DIFC and directly connected to the Gate Avenue, ICD Brookfield Place will become a prominent office towers in Dubai and will establish a benchmark in commercial development for the region. “As ICD Brookfield Place offers efficient and flexible workspaces as well as a wide array of well-curated retail experiences and amenities, it is a premier address for global industry leaders,” said Rob Devereux, CEO of ICD Brookfield. “We are pleased to welcome three of the world’s largest financial and professional services companies, to the development.” Régis Burger, Head Middle East and CEO of Julius Baer (Middle East) Ltd. in Dubai said, “Dubai is the hub for the growing emerging markets at Julius Baer. Since we have established our presence in the DIFC, operating with the first license delivered 15 years ago, we have focused on providing world-class wealth management services to our sophisticated private clients. Our presence in the DIFC offers us great connectivity, the right infrastructure, and resources to realize our growth aspirations. As we continue to grow our business here and across the Middle East, it is only logical to bolster our presence in this leading financial center by relocating to such a prominent address to support our long-term vision for this market.” Source: Gulf News Back to Index

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UAE CONSTRUCTION PROJECTS' VALUE HITS DH3 TRILLION IN JUNE Tuesday, July 02, 2019 The UAE's construction sector will remain active over the next decade despite slowdown in global economy as total value of projects in the country hit Dh3.05 trillion in June, according to a report. BNC Network said in its latest report said the UAE is the second largest construction market in the GCC with Dh3.05 trillion projects after Saudi Arabia's Dh3.29 trillion projects. However, the UAE leads in urban construction projects with Dh1.75 trillion worth of projects under way followed by Dh1.49 trillion in Saudi Arabia. Both the countries control 69 per cent of the total GCC construction market and 79.5 per cent of urban construction market, respectively. More than 26,000 construction projects exceeded Dh9.25 trillion last month, the report added. Property developers and industry executives said ongoing mega projects will continue even beyond 2020 as the government may come up with surprise announcement to launch new mega developments that will keep the local job market active and contractors busy. They believe that Expo 2020 is not the end, but the beginning of construction industry as the government could bid for mega sports event such as Olympics and also launch another 10-year programme to stimulate the economy. "Expo 2020 is a new beginning and not the end for Dubai's construction industry," Avin Gidwani, CEO of BNC Network, told Khaleej Times. Following the Expo 2020's successful bidding, it is believed that Olympics can possibly be the next major event that Dubai or Abu Dhabi can bid for which will drive not just the construction but the economy as a whole. Abu Dhabi has already hosted Winter Olympics generating nearly Dh1 billion in economic activity during its 10-day run. Moreover, it is also spending Dh50 billion under Ghadan 21 programme. "The construction going on for Expo 2020 Dubai is to complete another piece of the puzzle if you refer to Dubai's original city plan as the city is built systematically piece by piece. It is highly likely that Dubai will come up with another 10-year plan that will include project announcements such as Mina Rashid which will continue to drive Dubai's construction industry even after 2020," said Gidwani. He pointed out that the remarkable initiative launched recently by the Roads and Transport Authority was a unique package of six urban engagement projects - Sunset Promenade, Deira Plaza, Skypods, Umm Suqeim pedestrian bridge, Sheikh Zayed Road promenade, and the Sky Garden. "Other massive projects that will keep construction active post-2020 include the Dubai South, Mina Rashid and Deira Islands," he added. Lewis Allsopp, CEO of Allsopp & Allsopp, said Expo 2020 has brought a lot of construction to Dubai, however, there is always going to be developer interest in the city beyond Expo 2020, if not more. "The Expo will generate more interest in Dubai and showcase the business potential of the city. With more businesses thriving in, the more potential for developers," he said. Citing examples, he said Emaar Beach Front is due to handover in third quarter of 2021 and was sold out earlier this year before construction began. Dubai Creek Development, which will take years to complete with the world's new tallest building, will handover after Expo, as well as Port De La Mer by Meraas. In addition, The DIFC 2.0 mega

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project will bring another 13m sqft of built-up area to DIFC which will include offices, residential, innovation, retail and hotels.

"These are only a few developments coming after Expo 2020 and I am sure we will see lots of exciting development plans in the near future," he added. Sudhakar Rao, chairman of Gemini Property Developers, said the real estate and construction sectors were never dependent on Expo 2020. "The Expo 2020 helped new project launches and execution - that helped additional facilities being built. Following the Expo 2020, both the sectors will be driven by the real demand and supply situation and how the overall economy performs. If the existing supplies are absorbed by continued demand, we will see more projects coming up in the next few years," Rao said. Source: Khaleej Times Back to Index

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UAE TIPPED TO BE BEST GULF ECONOMY IN 2020 Sunday, July 07, 2019 The slowdown in the UAE's economy due to a cut in oil production as part of the Opec+ deal will be short-lived and the economy will be the fastest-growing economy of the Gulf region next year, according to a new study. "Economic growth in the UAE will slow over the rest of this year due to the impact of oil production cuts. But preparations for the World Expo will help to drive rebound in 2020 and we expect the economy to be the best- performing in the Gulf," said Jason Tuvey, senior emerging markets economist at Capital Economics. Opec and its allies led by Russia agreed to extend oil output cuts until March 2020 on Tuesday, seeking to stabilise the price of crude as the global economy weakens and US production soars. The UAE's economic growth reached a two-year high of 2.8 per cent in the fourth quarter of 2018. However, this largely reflected stronger growth in the oil sector as the country joined Saudi Arabia in raising oil production ahead of the re-imposition of US sanctions on Iran. In contrast, growth in the non-oil sector weakened to just 0.2 per cent year-on-year, its worst performance since 2009. "We think that GDP growth probably eased in the first half of this year as oil production cuts weighed on growth in the oil sector. The decision earlier last week by Opec+ to roll over its existing oil output agreement to the end of March 2020 means that this drag is likely to intensify. In Q4, weaker growth in the oil sector will shave around 2.5 percentage points off year-on-year GDP growth compared with Q3," said Tuvey. Capital Economics predicts crude will stay low at $60 per barrel this year. "Heading into 2020, however, economic growth is likely to rebound. The drag from the oil sector will fade. And the non-oil sector will be bolstered by the 2020 World Expo. Preparations for the exhibition will be stepped up and there will be a sizeable boost to activity once the Expo kicks off late next year. Annual tourist arrivals are expected to reach as much as 20 million next year, compared to just under 16 million in 2018. All else equal, this could boost overall GDP growth by as much as 2.5 percentage points," he said. Earlier, the Central Bank of the UAE also revised down its growth forecast for 2019 in its first-quarter report and forecast slower growth for the third and fourth quarters at 2 per cent and 1.6 per cent, respectively. It predicted faster growth of 2.2 per cent for the first and second quarters of 2019 FocusEconomics said in its latest update that the UAE's growth moderated but remained healthy in the first quarter, as Opec+ production cuts in effect since January dampened oil-sector growth, while non-oil activity picked up after a near-flat reading in the fourth quarter, thanks in good part to higher government spending. "Turning to the second quarter, the non-oil sector appears to have made some positive strides... data for Dubai also indicates healthy tourism, as well as a pick-up in construction activity in May due in large part to the ramp-up of Expo 2020 projects," it said. Source: Khaleej Times Back to Index

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DUBAI BIGGEST BENEFICIARY OF VAT REVENUE Monday, July 01, 2019 Dubai was the largest beneficiary among the seven emirates in value-added tax (VAT) collection last year, receiving 42 per cent or Dh11.34 billion of the Dh27 billion total, Moody's Investors Service said. Data from the global ratings agency showed that the federal government will retain 30 per cent, or Dh8.1 billion, of the collected revenues while the remaining Dh18.9 billion, or 70 per cent, will be divided among the emirates. After Dubai and the federal government, Abu Dhabi will receive 18 per cent (Dh4.85 billion). Sharjah will get 6 per cent (Dh1.61 billion) and the Northern Emirates will receive 4 per cent (Dh1.1 billion). The UAE levied 5 per cent VAT on selected goods and services from January 1, 2018, in order to boost revenues and diversify economy away from hydrocarbon dependence. The Federal Tax Authority collected Dh27 billion in VAT revenues in 2018, surpassing its 2018 target of Dh12 billion and even the 2019 target of Dh20 billion. Thaddeus Best, analyst at Moody's Investors Service, said the UAE surpassing its 2018 VAT collection target by 125 per cent is credit-positive for the country. He said that although the standing populations of Dubai and Abu Dhabi are fairly similar, Dubai benefits from a much higher tourism spending and a higher daytime population as workers commute in from other emirates. The additional VAT receipts should help offset some of the losses to government revenues from the reduction in service fees that the government of Dubai recently implemented as part of its efforts to stimulate the economy in the face of decelerating non-oil real GDP growth. Naveen Sharma, head of the Accounting, Audit & Advisory Services Focus Group at the Indian Business and Professional Council Dubai, said VAT collection will increase for the current year as well due to a high compliance ratio and increased spending for Expo 2020. "I think the UAE will collect around Dh40-Dh50 billion in VAT for this year. The economy is growing rapidly as the UAE government has taken a number of economic measures that will result in an increase in VAT collection," Sharma said. Pratik Shah, partner at WTS Dhruva Consultants, said VAT collection in 2018 included tax on transition contracts and arrangements apart from the supplies undertaken in 2018, and this is one of reasons that VAT collection crossed the estimate. "While the 2019 revenue collection would not have VAT on transition contracts, a potential increase in revenue collection could be expected due to changes in the tax position/transactions on which VAT is unpaid in 2018 as majority of the companies in UAE are re-evaluating the position taken at the time of VAT implementation." In addition, the UAE's GDP is expected to grow at 3.5 per cent in 2019 as compared to 2.8 per cent in 2018, and impact of the increase would have a positive impact on the revenue collection, he added. "Overall, expected VAT collection could be in the range of Dh30 to Dh32 billion in 2019. In addition to this, there would be excise tax collection and potential penalty collection on account of delay in payment of taxes, filing voluntary disclosures, delay in registrations/filing returns, etc. One may need to see the impact on the revenue collections considering the refunds to be disbursed by the FTA in 2019," Shah added.

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Best said given this high level of compliance in the first year and Moody's expectation for non-oil growth to remain subdued, it does not expect a significant increase in VAT collections in 2019. It will nevertheless be higher than currently budgeted. Source: Khaleej Times Back to Index

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

Northern Emirates, Qatar, and the Kingdom of Saudi Our valuations are carried out in accordance with the Arabia not only provides a deep understanding of the local Royal Institution of Chartered Surveyors (RICS) and markets but also enables us to undertake large International Valuation Standards (IVS) and are instructions where we can quickly apply resources to meet undertaken by appropriately qualified valuers with clients requirements. extensive local experience.

Our breadth of experience across all the main property sectors is underpinned by our sales, leasing and The Professional Services Asteco conducts throughout investment teams transacting in the market and a wealth the region include: of research that supports our decision-making. • Consultancy and Advisory Services

• Market Research John Allen BSc MRICS • Valuation Services Executive Director, Valuation & Advisory +971 4 403 7777 SALES [email protected] Asteco has established a large regional property sales division with representatives based in UAE, Saudi Arabia, Qatar and Jordan. Jenny Weidling BA (Hons) Our sales teams have extensive experience in the Manager, Research & Advisory negotiation and sale of a variety of assets. +971 4 403 7789 [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.

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

BUILDING CONSULTANCY The Building Consultancy Team at Asteco have a wealth of experience supporting their Clients throughout all stages of the built asset lifecycle. Each of the team’s highly trained Surveyors have an in- depth knowledge of construction technology, building pathology and effective project management methods

which enable us to provide our Clients with a Comprehensive Building Consultancy Service.