ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION NEWS BRIEF 30 SU NDAY 24 July 2016 RESEARCH DEPARTMENT DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2016 asteco.com | astecoreports.com ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION REAL ESTATE NEWS UAE WHY EXPAT RESIDENTS PREFER TO RENT THAN OWN IN UAE UAE HOTELIERS COUNT ON MARVEL, LEGO AND BOLLYWOOD THEME PARKS OPENING FOR YEAR-ENDING BOOST UAE RESIDENTS PREFER TO RENT THAN BUY HOMES, TURNED OFF BY HIGH PRICES – PROPERTYFINDER SURVEY THIS UAE EMIRATE OFFERS STUDIO UNIT FOR DH917 PER MONTH DUBAI SOBHA GROUP GEARS UP FOR DUBAI’S NEXT PROPERTY MARKET UPSWING BUSINESS BAY, MARINA TOP BUY FAVOURITES IN DUBAI DUBAI HOLDING, EMAAR TO REVIVE WORLD'S LONGEST LUXURY HOTEL CHAIN WHERE YOU CAN RENT A UNIT FOR DH18,000 A YEAR IN SHARJAH RTA TO LAUNCH ALL-IN-ONE TRANSPORT PAYMENT APP DUBAI HOME SALES ON A REBOUND DUBAI PROPERTY IS HOT INVESTMENT MORE DUBAI PROPERTY DEALS OVER FIRST SIX MONTHS – BUT TOTAL VALUE LOWER BREXIT TO DELAY DUBAI HOUSING MARKET RECOVERY, PROPERTY BROKER JLL SAYS DUBAI SPEEDS UP COLLECTION OF ARREARS FROM TENANTS WHO LOSE RENTAL DISPUTES DUBAI SOUTH TENDERS FOR EXPO 2020 SITES TO SPUR SALES OF AFFORDABLE HOMES ACTION GROUP UPGRADES DUBAI HEALTHCARE CITY HOTEL ASTECO MAKES SEVEN ASSOCIATE DIRECTOR PROMOTIONS ABU DHABI ALDAR AWARDS DH440 WORTH OF CONTRACTS FOR AL NAREEL ISLAND AND AL MERIEF LUXURY PROJECTS WHO SHOULD BE FIRST TO MAKE CONTACT 60 DAYS BEFORE THE END OF AN ABU DHABI TENANCY CONTRACT? DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2016 asteco.com | astecoreports.com Page 2 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION REAL ESTATE NEWS NORTHERN EMIRATES SHARJAH RENT CONTRACT REGISTRATION FEE DOUBLED FROM AUGUST GCC/INTERNATIONAL BUY INTO HIS PROJECT AND GET A ‘GOLDEN’ PASSPORT DUBAI RETAILER FOREVER ROSE TO OPEN HOTELS IN LONDON AND GCC DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2016 asteco.com | astecoreports.com Page 3 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION THIS UAE EMIRATE OFFERS STUDIO UNIT FOR DH917 PER MONTH Thursday, 21 July, 2016 Here is one thing that majority of UAE residents want across the emirate: Renting an apartment for less than Dh1,000 a month. The second quarter 2016 report by Land Sterling, a property consultancy, reveals average annual rent for studio apartments in Fujairah range from Dh11,000 (Dh917 a month) to Dh22,000 (Dh1833), making it the cheapest in the country. The report, however, mentions that rentals have gone up for studios in the emirate by 6.5 per cent in the second quarter compared to the first quarter 2016. Studio rentals in Ajman remained stable, with rates starting from Dh18,000 per year, rising to Dh28,000 per year. In Ras Al Khaimah, rentals for studio range from Dh18,000 to Dh30,000 a year, with rates increasing 4.3 per cent quarter-on-quarter. A studio unit can be leased in Umm Al Quwain for Dh15,000 to Dh18,000 a year. The rates have jumped by 10 per cent, according to the report. On Wednesday, Emirates 24|7 reported based on Land Sterling report that average rent for studio units in Sharjah had gone up by 4.2 per cent with annual rents from Dh18,000 to Dh32,000 a year. In February 2016, Asteco, a real estate consultancy, reported that rents across most of the Northern Emirates had declined slightly during 2015 with the exception of Fujairah. Source: Emirates 24/7 Back to Index DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2016 asteco.com | astecoreports.com Page 4 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION ASTECO MAKES SEVEN ASSOCIATE DIRECTOR PROMOTIONS Wednesday, 20 July, 2016 Asteco has promoted seven of its staff members to newly created associate director positions. The UAE-based real estate services firm has also launched the Asteco Academy, which will be used as a training and development facility for brand franchisees. The promotions and facility launch have been carried out as part of the company’s ‘people first’ initiative, which is designed to recognise the importance of employees and to grow its franchisee network. John Stevens, managing director of Asteco, commented: “These are testing times, not only for the real estate sector, but for businesses in general. “While we are seeing an increasing number of lay-offs and company restructuring in response to the bottoming out of the market and current economic challenges, Asteco believes that this is exactly the time when we need to invest in our greatest asset: our people.” Asteco’s latest associate director appointments include: Tamer Chaaban from its property management department; Anne Marie Shein and Morgan Dalton from its asset management department; James Joughin from valuations; Julia Knibbs from research and consultancy; Melnora Francisco Burayag from finance; and Nick White from owners association management services. All seven of the new associate directors have been given greater autonomy with regards to budgets, and will act as figureheads within their respective departments, according to Asteco. The promoted individuals will report to the firm’s board. “With close to a cumulative century of industry experience both here and internationally, the team is truly at the vanguard of Asteco’s strategic development, and this confidence and acknowledgement of these individuals’ professional skills is essential to our ability to plan for the future and maintain our position as the Middle East’s largest real estate consultancy practice,” said Stevens. “The route to associate director has now been clearly defined, and we can see the motivation that this has given other colleagues in the company who didn’t meet the requirements to be considered for an associate this year, but are working to ensure that they achieve [them] during the next review process,” he concluded. Source: Emirates 24/7 Back to Index DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2016 asteco.com | astecoreports.com Page 5 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION WHERE YOU CAN RENT A UNIT FOR DH18,000 A YEAR IN SHARJAH Wednesday, 20 July, 2016 The average rent for studio units in Sharjah have gone up by 4.2 per cent in the second quarter compared to the first quarter of 2016 despite the average minimum rent being Dh18,000 a year, according to property consultancy Land Sterling. Al Muwaileh is the cheapest locality to rent in the emirate, with average rents ranging between Dh18,000 and Dh27,000 a year. In Al Khan, Al Majaz, Al Qasimiyah and Al Nahda, annual rents range from Dh23,000 to Dh30,000; Dh25,000 to Dh35,000; Dh20,000 to Dh30,000 and Dh25,000 to Dh35,000, respectively. The cheapest three-bed units is available in Al Qasimiyah, with rents between Dh40,000 and Dh80,000 per year. The costliest area is Al Majaz where rents range from Dh50,000 to Dh110,000 a year. In Al Khan, Al Nahda and Al Muwaileh, annual lease rate range between Dh55,000 and Dh90,000; Dh50,000 and Dh85,000 and Dh60,000 and Dh65,000. Asteco, a real estate consultancy, reported in February 2017 that new supply of housing units in Sharjah coupled with a lower inflow of residents from Dubai will put downward rental pressure on lower quality apartment towers. “Rental demand is expected to be stagnant in Sharjah as a reduction in prices in neighbouring Dubai will lead to a lower than usual inflow of new residents, which may be worsened by reduced government spending and potential job cuts,” the consultancy had said. Emirates 24|7 reported on Monday that Sharjah Municipality had doubled the residential rent contract attesting fee from 2 per cent to 4 per cent of the annual rent from August 1, 2016. The civic body said: “Pursuant to the Executive Council Decision No 26 of 2016 concerning the modification of the fees schedule of tenancy contract attest in Sharjah, the new fee structure will come into force as of 1/8/2016 to be as follows, residential contract: 4 per cent of annual rent, commercial contracts: 5 per cent of annual rent and investment contracts: 3 per cent of annual rent.” Rent Law The Law No. 2 of 2007, regulating the relations between landlords and tenants, details the rights of the parties, which are as follows: # Article 9 stipulates that the landlord should guarantee the property is given on rent as per the specifications mentioned in the contract and in case any amenities found lacking, the tenant has the right to claim its addition or maintenance. It also mentions that landlords should carry out maintenance of the leased properties, unless both parties agreed otherwise. # Article 11A states that the landlord is not entitled to increase the rent under a lease prior to the expiry of 3 years from the signing of the lease. DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2016 asteco.com | astecoreports.com Page 6 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION # Article 11B provides that the increase mentioned in Article 11A shall be according to the market rent of comparable properties and once decided will be applicable to that property for 2 consecutive years. If the revised rental value cannot be agreed upon by the landlord and tenant, they may refer it to the Rental Committee who will settle the dispute and place a rental value on the property in question.