Week 44 SUNDAY, 03 NOVEMBER 2019 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION REAL ESTATE NEWS UAE / GCC / MENA HOUSE BUYING IN RIYADH AND JEDDAH RAMPS UP IN THIRD QUARTER HOMEFRONT: 'I BOUNCED NINE RENTAL CHEQUES DESPITE ASKING THE LANDLORD FOR A SHORT DELAY' SAUDI ARABIA’S ECONOMY PROJECTED TO GROW 2.3% NEXT YEAR RED SEA DEVELOPMENT CO ASSEMBLING 10BN SAUDI RIYAL DEBT PACKAGE FOR GIGA-PROJECT SAUDI TOURISM MEGA PROJECT AWARDS CONTRACT FOR AIRPORT PLAN WORK SET TO START ON $3.5BN KING HAMAD CAUSEWAY MEGA PROJECT CONSTRUCTION STARTS ON MANDARIN ORIENTAL, MUSCAT NEW DIRECT, INDIRECT TAXES TO BE IMPOSED IN UAE HOW VISA REFORMS BOOST UAE ECONOMY NON-OIL SECTOR SET TO DRIVE UAE GROWTH LOANS MAY GET CHEAPER IN UAE AS CENTRAL BANK CUTS INTEREST RATES DUBAI DEYAAR TO START DH800 MILLION PROJECT IN MIDTOWN DEVELOPMENT IN DUBAI HOW DUBAI OFFICE RENTS HAVE FARED SO FAR IN 2019 MORE DUBAI TENANTS 'TRADE UP' TO BIGGER HOMES AS RENTS REMAIN SUBDUED 'IF YOUR PROFITS HAVE FALLEN BY NEARLY 90%, IT'S DIFFICULT TO FOCUS,' SAYS ALABBAR OVER DAMAC CLAIMS DUBAI DEVELOPER CALLS FOR PROPERTY SUPPLY FREEZE UAE'S AZIZI ADDS 6,000 WORKERS TO BOOST CONSTRUCTION OF FLAGSHIP PROJECT DUBAI AUTODROME BUSINESS PARK PHASE 2 ON TRACK FOR FEBRUARY DELIVERY ABU DHABI | AL AIN | DUBAI SHARJAH | JORDAN | KSA 34+ YEARS IN THE MIDDLE EAST © Asteco Property Management | 2019 | asteco.com Page 1 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION REAL ESTATE NEWS PIRELLI LAUNCHES TYRE HOTEL CONCEPT IN DUBAI DANUBE READIES FOR DH1.5B PROJECT LAUNCH IN DUBAI FIVE NEW COMMUNITIES IN DUBAI TO MOVE INTO DEVELOPER TAKES VERTICAL LIVING IN DUBAI TO ‘LOFTY’ HEIGHTS DUBAI'S REAL ESTATE TO DRIVE ITS OWN GROWTH IN COMING YEARS CHINESE INVESTORS' INTEREST IN DUBAI'S REAL ESTATE SECTOR GROWING NO RENT HIKE FOR THREE YEARS IN DUBAI, DRAFT LAW PROPOSES SMART DUBAI TO PROMOTE USE OF ADVANCED TECHNOLOGIES IN REAL ESTATE ABU DHABI FITCH ASSIGNS STABLE OUTLOOK FOR ABU DHABI ON HIGH GDP PER CAPITA ABU DHABI'S AED 12BN WATERFRONT DESTINATION YAS BAY COMPLETES MAJOR MILESTONES REALTY A KEY COMPONENT OF ABU DHABI ECONOMY NORTHERN EMIRATES RAK PROPERTIES' PROFIT SPIKES AS MORE NEW HOMES ARE SOLD INTERNATIONAL BLACKSTONE, OTHER PE MAJORS INVEST $3.8BN IN INDIAN REAL ESTATE PROJECTS ABU DHABI | AL AIN | DUBAI SHARJAH | JORDAN | KSA 34+ YEARS IN THE MIDDLE EAST © Asteco Property Management | 2019 | asteco.com Page 2 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION HOUSE BUYING IN RIYADH AND JEDDAH RAMPS UP IN THIRD QUARTER Thursday, Oct 31, 2019 The number of residential transactions in Riyadh and Jeddah rose substantially during the third quarter of 2019, driven by improving consumer sentiment, attractive valuations and the development of several large-scale housing schemes, according to a new report from Knight Frank. Efforts to expand the mortgage market also had a positive impact. Residential transactions in Riyadh rose 122 per cent year-on-year in the third quarter whereas in Jeddah, transactions rose 82 per cent. The value of transactions also rose in both major cities, with Riyadh recording 12.92 billion Saudi riyals (Dh12.65bn) in transactions during the third quarter, up 139 per cent year-on-year. Transactions in Jeddah were up 60 per cent to 4.27bn riyals, the report said. “We expect the volume of transactions to maintain a positive momentum over the next 12 months, underpinned by the Sakani affordable housing programme and the regulatory efforts to expand the mortgage market,” Knight Frank said in the report. Sakani is a government programme aimed at providing affordable homes for Saudis via subsidised land plots and access to cheap home loans. Residential supply in Riyadh increased to 1.24 million housing units, with 8,000 new units added in the third quarter, Knight Frank said. The consultancy expects 70,000 more units to be handed over to the market between 2019 and 2021. In Jeddah, residential supply reached 835,000 housing units, with about 1,800 added to the market during the third quarter. About 25,000 units are expected to be handed over between 2019 and 2021 to the Jeddah market. Villa sale prices in Riyadh recorded a 1.4 per cent year-on-year increase during the third quarter whereas apartment sale prices declined moderately at 0.4 per cent. In Jeddah, villa and apartment sale prices dropped 6 per cent and 7 per cent, respectively, year-on-year. Price falls in Jeddah are likely to moderate due to the pick-up in activity, which will also cause prices in Riyadh to stabilise, the consultancy said. Rival consultancy JLL said Riyadh's residential market continued to soften during the third quarter with apartment and villa sale prices dropping 6 per cent and 5 per cent, respectively, year-on-year. Rental rates of apartments and villas also declined at a rate of 1 per cent during the period. JLL said the Jeddah residential market remained "weak" during the third quarter due to a slowdown in economic activity and softening demand. On an annual basis, average rental rates and sale prices continued to soften by 7 per cent and 8 per cent, respectively, for both apartments and villas. “The performance of the residential market is expected to witness further declines as more supply is delivered in the coming 12 to 24 months,” JLL said on Jeddah. “However, we remain positive in our long-term outlook as the market is expected to pick up on the back of housing initiatives, which tackle the shortage of affordability and increase homeownership rates in line with Vision 2030,” it said. ABU DHABI | AL AIN | DUBAI SHARJAH | JORDAN | KSA 34+ YEARS IN THE MIDDLE EAST © Asteco Property Management | 2019 | asteco.com Page 3 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION The office market fared slightly better, showing stabilisation, JLL said, after a number of difficult years. Select Grade A spaces characterised by high-quality finishing with ease of access and ample amenities maintained healthy rents of approximately 1,500 riyals per square metre. The recent launch of international tourist e-visas in Saudi Arabia, as part of Vision 2030 initiatives to boost tourism, is set to have a positive long term impact on the Kingdom’s real estate market, JLL said. Source: The National Back to Index ABU DHABI | AL AIN | DUBAI SHARJAH | JORDAN | KSA 34+ YEARS IN THE MIDDLE EAST © Asteco Property Management | 2019 | asteco.com Page 4 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION HOMEFRONT: 'I BOUNCED NINE RENTAL CHEQUES DESPITE ASKING THE LANDLORD FOR A SHORT DELAY' Wednesday, Oct 30, 2019 I rented a studio in Abu Dhabi and signed a contract for a year. After signing the cheques for the property, my company started delaying my salary payment. I approached the landlord and asked him not to deposit the cheque on the date mentioned to avoid it bouncing. I requested an eight-day delay on each monthly cheque to allow my salary to come in, but he refused and deposited the cheque on the mentioned dates. It meant the cheque bounced every month. When my salary eventually dropped, I would then go and pay him in cash to cover the bounced amount, however, he never gave me a receipt to prove I had paid him. This went on for nine months, so I asked him to return all the cheques I had given him. He refused saying I must pay Dh500 for each bounced cheque before he would give them to me. I told him I did not have the money and that he could keep the cheques for now. However, I demanded he give me a receipt for the rent I have paid to cover the nine months. He refused and then started cutting my electricity and AC on a regular basis. I later told him I would not honour the remaining three months' rent unless he gave me a receipt for the nine months. Alternatively, I again demanded he give me back my cheques. He did not agree and now my AC has been cut off for three months because I have refused to pay due to him not giving me any proof of payment. Also my contract is not registered. What should I do? EV, Abu Dhabi Your situation is not ideal for you or your landlord: in your case because of the delay in your employer paying your salary; for the landlord it is the bounced cheques. The landlord, however, is clearly not being sympathetic especially as you do pay your rent — albeit late in cash. The reason the landlord is requesting the penalty of Dh500 per bounced cheque is presumably due to the clauses in your tenancy contract stating this and also to cover any bank charges attracted by the returned cheque. The landlord, however, is not allowed to cut off your AC or water so for this you can go to the police to file a complaint. You can also file a complaint at the rent committee but unfortunately as your rental contract is not registered, your complaint is weakened. My advice is to remove yourself from this situation and to give your landlord the statutory two months' notice of non renewal, seeking alternative accommodation going forward. The real issue is the fact you are paid late by your employer every month. I suggest you seek further advice from the Ministry of Human Resources & Emiratisation. Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for 35 years in London and Dubai.