ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION NEWS BRIEF 40 SUN DAY 11 October 2015 RESEARCH DEPARTMENT DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2015 asteco.com | astecoreports.com ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION REAL ESTATE NEWS UAE EXPO 2020 TO SPUR BOOM IN UAE HOTELS REFURBISHMENT, CONTRACTORS SAY DUBAI DUBAI SHOPPING CENTRE RENTS TO FALL FURTHER ON STRONG US DOLLAR ROYAL ATLANTIS ON PALM JUMEIRAH IS EXPECTED TO BE COMPLETED IN 2018 WHY DUBAI RENT NOT FALLING IN STEP WITH PROPERTY PRICES WHERE WAS DUBAI'S BIGGEST PROPERTY DEAL? DAMAC ON 30-DAY MISSION TO SELL DUBAI REAL ESTATE NAKHEEL CONFIRMS DH819 MILLION CONTRACT FOR THE PALM TOWER RENTS FOR SOME DUBAI FLATS DROP BY AS MUCH AS 19% DUBAI PROPERTY REGISTRATION DEADLINE INCHES NEAR DUBAI’S OFFICE REALTY PICKS UP SPEED DUBAI TO INTRODUCE NEW PUBLIC-PRIVATE PARTNERSHIP LAW NEXT MONTH TDIC APPOINTS NEW CHIEF EXECUTIVE UK LUXURY TOUR OPERATOR TO OPEN DUBAI OFFICE BY DECEMBER FIRST ROLLER COASTER INSTALLED AT LEGOLAND DUBAI DUBAI RENTS FOLLOW PRICES INTO DECLINE, SOME PROPERTY PROJECTS ‘DELAYED UNTIL NEXT YEAR’ WELCOME TO ‘DUBAI-ON-THAMES’ DUBAI SET FOR ITS FIRST RESIDENTIAL REIT AMID FALLING PRICES DUBAI MUST OVERHAUL BUSINESS PARKS TO ATTRACT GLOBAL TECHNOLOGY COMPANIES, SAVILLS SAYS OCCUPANCY RISES AT DUBAI FOUR AND FIVE-STAR HOTELS IN AUGUST DUBAI TO DRAW HALF A MILLION MEDICAL TOURISTS FIVE YEARS AHEAD OF SCHEDULE DUBAI PRIME OFFICE RENTS LIKELY TO STAY FLAT AS MAJOR NEW DEVELOPMENTS ADD TO SUPPLY GLUT RTA IN DUBAI PROGRESSES UNION OASIS PROJECT ABOVE METRO STATION ABU DHABI CHEAPEST AREA TO RENT STUDIO, ONE-BED APARTMENT IN UAE'S CAPITAL ABU DHABI PROPERTY SHOW FOR PAKISTANIS MORE CRUISE SHIPS EXPECTED TO DOCK AT ABU DHABI’S ZAYED TERMINAL DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2015 asteco.com | astecoreports.com Page 2 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION CHEAPEST AREA TO RENT STUDIO, ONE-BED APARTMENT IN UAE'S CAPITAL FRIDAY 09 OCTOBER 2015 The UAE’s real estate market managed to perform resiliently in the third quarter 2015 with prices not falling as significantly as expected, according to a new report. Tasweek Real Estate Development said in its report that time was right for tenants to become homeowners, citing local consultancy advice, given that the equated monthly installments were below the monthly rental outgo. Prospective home buyers have to pay 25 per cent down payment for completed properties, while banks are allowed to offer 50 per cent of the property value as home loan in off-plan properties. Flexible payment plans are being offered by developers, depending on the construction progress. “We were surprised with how the market performed against expectations this quarter. This sets the sector up for a good year overall as it slowly prepares for a stronger and better 2016. As our report noted in Q2, diversification, favorable demographics and a sound regulatory environment will continue to protect the UAE’s property business from any harmful market shifts,” said Masood Al Awar, CEO, Tasweek. He, however, cautioned the ongoing slump in oil prices may eventually affect the overall management of various expenses and could have a trickle-down effect on the domestic economy. Abu Dhabi The capital’s residential market sustained the second quarter trend, with landlords continuing to protect rental levels via strict supply controls. Overall, third quarter prices did not change significantly over the previous quarter. The best annual apartment rental rates for the third quarter were offered at Muroor Road, with rates of Dh57,750 for a studio, Dh68,250 for one bed, Dh84,000 for two bed, Dh126,000 for a three bed and Dh168,000 for a four-bed unit . Renters could lease studio, one-, two-, three and four-bed units in Al Markaziyah for Dh57,750 pa, Dh78,750 pa, Dh94,500 pa, Dh136,500 pa and Dh189,000 pa, respectively. Average annual rates at Khalidiya for studio units stood at Dh63,000, one-bed at Dh78,750, two-bed at Dh99,750, three-bed at Dh147,000 and four-bed at Dh210,000. Al Reef community offered the best annual villa rents, with three-, four- and five-bedroom units going for Dh130,000, Dh160,000 and Dh180,000, respectively. Al Ghadeer rates for three- and four-bedroom villas were at Dh150,000 pa and Dh170,000 pa, respectively. In terms of sales, the best-priced apartments per square feet were in Downtown Reef (Dh950), Al Raha Beach (Dh1,400), Marina Square (Dh1,450) and Saadiyat Beach (Dh1,450), while average villa sale prices of two- and three-bedroom units in Hydra Village stood at Dh1 million and Dh1.4 million, respectively. Prices in Al Reef ranged from Dh1.5 million to Dh3 million, and Al Raha Gardens, from Dh2.5 million to Dh4.5 million, for three to five-bedroom villas. Dubai DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2015 asteco.com | astecoreports.com Page 3 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION Residential prices remained stable overall, although the Dubai Land Department reported that transaction volumes dropped by 64 per cent compared to first quarter 2015. Average residential transaction prices also declined year on year by 12.7 per cent. The median transacted apartment price stood at Dh11,560 per square metres for the third quarter, while the median transacted villa price was at Dh13,024 per sqm. Dubai Marina retained its leading position in the top 10 most transacted areas, while Downtown Dubai and the Palm Jumeirah posted the highest apartment and villa prices, respectively. An additional 26,100 apartments and 2,400 villas are set for completion by 2016, the report said, adding 18 off-plan residential projects launched in the second quarter will add 5,000 units to the residential pipeline by 2019. “While already foresaw a solid year for industry, the third quarter figures show that the UAE’s property sector is still ripe for growth and expansion behind strong market fundamentals and high consumer confidence. Our latest market intelligence points to an even better 2015 than previously expected which will serve the industry well as it gears up for more activity on the lead up to the country’s 2020 World Expo hosting,” said Al Awar. Source: Emirates 24/7 Back to Index DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2015 asteco.com | astecoreports.com Page 4 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION ROYAL ATLANTIS ON PALM JUMEIRAH IS EXPECTED TO BE COMPLETED IN 2018 THURSDAY 08 OCTOBER 2015 The Dh5.14 billion ($1.4 billion) Royal Atlantis Resort and Residences in Dubai has been named in the top 10 global influencers for new luxury developments, Knight Frank said in its “Global Development Report 2015”. Developed by Investment Corporation of Dubai and Kerzner International, the project, located on the crescent of Palm Jumeirah, next to the Atlantis resort, is designed by Kohn Pedersen Fox Associates and will include nearly 800 rooms and 250 luxury residences. The project will house a sky pool that will soar almost 90 metres above the Palm. The expected completion date is 2018. “Enabling work has already commenced on the project with the main construction tender floated,” market sources told Emirates 24/7. The UK-based consultancy labels the Royal Atlantis to be the first truly super-prime development in Dubai, having 65 individual layouts. “This in itself has set The Royal Atlantis apart from other developments by designing from the inside out - with the focus being on the quality, high specification and attention to detail that will attract buyers from all over the globe,” the consultancy stated. The other nine projects on the list were Opus in Hong Kong; One Sydney, No.1 Alfred Street, Sydney; Tour Odeon, Monaco; Shanghai Arch, Shanghai; Four Seasons Madrid, Madrid; Faena House, Miami; The Surf Club, Miami; Vancouver House, Vancouver and No.8 Royal Park, Beijing. “Hong Kong’s Opus, completed in 2012 and designed by Frank Gehry, raised the bar for prime development in Asia and influenced a new generation of luxury developments now evident across the region, most notably in China and India. Our snapshot is set to expand significantly in the next five years with the addition of ambitious projects across emerging centres in Asia, Australia, Russia and the Middle East,” said company Global Head of Research Liam Bailey. Emirates 24/7 has listed the mega projects coming up in Dubai with the list including Museum of the Future, Bluewaters Island, Dubai Creek Harbour, Dubai Water Canal, etc. Source: Emirates 24/7 Back to Index DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN IN THE MIDDLE EAST FOR 30 YEARS © Asteco Property Management, 2015 asteco.com | astecoreports.com Page 5 ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION WHY DUBAI RENT NOT FALLING IN STEP WITH PROPERTY PRICES WEDNESDAY 07 OCTOBER 2015 Though property prices in Dubai have fallen by 11 per cent year-on-year till August 2015, rents have declined by mere one per cent. The expected rental decline this year hasn’t been as steep as previously perceived as the supply of new housing units in the emirate has been far less than expected. In its third quarter 2015 report, JLL, a global real estate consultancy, estimates only 10,000 units to be delivered this year as against 25,000 estimated at beginning of the year.