news brief 12 - asteco department . news brief 12 ... the dedicated portal will significantly...




REAL ESTATE NEWS UAE

EMAAR RETAIL LAUNCHES AMAZEME.AE PORTAL INVESTORS COMPETE FOR SLICE OF BOOMING RESIDENTIAL MARKET HOTELS IN THE EMIRATES GEAR UP FOR SAUDI ARABIA SPRING BREAK REGIONAL SOVEREIGN WEALTH FUNDS RACK UP $5.6BN WORTH OF DEALS

DUBAI

INVESTOR IN DUBAI: 'SERVICE FEE? BUT FIRST HAND OVER MY PROPERTY' 18 MONTHS AFTER FIRE, TAMWEEL TOWER STILL FEELING EFFECTS: OWNERS SELLING UNITS BELOW MARKET RATE

PROPERTY FEES MUST BE PAID BY OWNERS, NOT TENANTS: RERA EMAAR OFFERS BLVD CRESCENT IN DOWNTOWN DUBAI PROPERTY PRICES ROSE 35% FENCE FOR 3 DUBAI COMMUNITIES PROPERTY CONTRACTS IN DUBAI TO BE MADE MANDATORY TECOM MEDIA CLUSTER IN DUBAI TOPS 2,000 COMPANIES NAKHEEL AWARDS DH563M OF CONTRACTS FOR DUBAI MEGA COMMUNITIES APARTMENT AND VILLA REVENUES RISE MORE THAN 40% FOR DUBAI’S EMAAR

EMAAR MARKET CAP JUMPS NEARLY DH3BN ON PLAN TO SELL RETAIL UNIT ABU DHABI

17TH-CENTURY FRENCH STYLE WITH ROYAL ROSE HOTEL IN ABU DHABI DUBAI’S TIME HOTELS TO EXPAND IN ABU DHABI BEACH LIVING UP FOR GRABS AS SAADIYAT DEVELOPER TDIC ANNOUNCES APARTMENT SALE

ETIHAD ON RESIDENTIAL LEASING SPREE IN ABU DHABI AS STAFF EXPANDS NORTHERN EMIRATES

RAK CERAMICS RIDES WAVE OF UAE PROPERTY BOOM AS PROFIT RISES 22%




EMAAR RETAIL LAUNCHES AMAZEME.AE

PORTAL

THURSDAY 20 MARCH 2014

Emaar Retail has launched a new entertainment portal, Amazeme.ae, which offers deals and discounts on the entertainment provider's leisure attractions, the retail arm of Emaar announced in a media statement today.

The portal builds on the strong internet and Smartphone penetration in the UAE, and complements the Smart City initiative announced by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, and Ruler of Dubai.

The dedicated portal will significantly enhance the ease of visitors to access Emaar Retail's popular leisure attractions including Dubai Aquarium & Underwater Zoo, SEGA Republic, Dubai Ice Rink, Reel Cinemas and KidZania in The Dubai Mall, and SEGA Republic Game Zone and Reel Cinemas in Dubai Marina Mall, the statement added.

The statement said the portal will exclusively lead to significant savings for those visiting Emaar Retail's numerous entertainment and leisure attractions. "For instance, a family of four planning an afternoon of discovering the marvel of the ocean at Dubai Aquarium & Underwater Zoo and a thrilling gaming session at SEGA Republic could save up to 50 per cent on a bundle offer provided exclusively on www.amazeme.ae," it noted.

All the leisure attractions under Emaar Retail are showcased on the portal, and visitors logging on to the cross-asset promotion portal can purchase regular tickets in advance and enjoy promotional deals and offers that assure higher value for money.

However, the portal still seems to be work-in-progress, with the Promotions tab leading us to a pop-up that says 'This feature is coming soon!' when Emirates 24|7 checked it out this morning.

Maitha Al Dossari, Chief Executive Officer of Emaar Retail LLC said: "Our new portal complements the Smart City initiative announced by His Highness Sheikh Mohammed Bin Rashid Al Maktoum by providing visitors the opportunity to ensure access premium leisure attractions in the city at their convenience.

"Amazeme.ae is a one-stop online destination that offers extremely competitive offers, which will be renewed throughout the year. The launch of the entertainment portal illustrates how, as the region's premier provider of leisure experiences, we are dedicated to providing exceptional services, through innovative channels that leverage the latest technology."

Source: Emirates 24/7

Back to Index

•




INVESTOR IN DUBAI: 'SERVICE FEE?

BUT FIRST HAND OVER MY PROPERTY'


An Indian property owner was left seething with rage when he was asked to pay the maintenance fee for an apartment yet to be handed over by the developer.

Raju Rai, 44, said he was slapped with a Dh3,772 service fee bill by developer Al Mazaya Real Estate for his one-bedroom apartment in Queue Point Liwan even though he hasn't taken possession.

Rai bought the apartment for Dh433,000 in July 2007 and had paid 90 per cent of its cost by 2010. "I was hoping to move in with my family when the apartment got ready in 2011. Three years on, I am still waiting. If this is not bad enough, they are asking me to pay service fees," he said angrily. "I call them every few days. Each time they give me a new handover date. Emails sent to their office seldom elicit a response, added Rai, a sales manager at a chemical firm.

"Last month, they wrote to me, saying the handover was delayed as the building has no water and electricity connection. But I am not sure if this is the real reason."

Queue Point is a 13 million square foot project in Dubailand comprising freehold apartments and offices. Rai's apartment is in a row of five buildings, only two of which have been handed over. "When Mazaya launched these affordable homes I booked so I could save on rent. But my plans have gone awry by the delay. If there is a problem they should return my money," said Rai who has also written to the Dubai Land Department.

Another Queue Point investor Tanveer Shaukat Ali, 57, said he got tired of the waiting game. "I booked a Dh700,000 two-bedroom apartment for my daughter, but have yet to take possession. I am at my wit's end now."

Source: Gulf News

Back to Index

•




DUBAI PROPERTY PRICES ROSE 35%


In its latest (Q4 2013) Global House Price Index report, the UK-based consultancy said prices jumped by 34.8 per cent during the 12-month period (Q4 2012 to Q4 2013), adding, mainstream prices still remained 25 per cent below their 2008 peak.

"Dubai recorded the largest annual rise in mainstream property prices with prices rising 15.3 per cent in the six-month period (Q2 to Q4 2013)," the report said.

In February, JLL, a real estate consultancy, said prices were 15 per cent below the 2008 peak and could reach the peak in coming 10 to 18 months.

"In some location we are witnessing that prices have reached the 2008 level, but overall we see that prices will reach that level in the next 10 to 18 months," Craig Plumb, Head of Research, JLL Mena, had said.

In the past, Citibank, Standard Chartered and Goldman Sach Group have said that Dubai's property market growth was sustainable and there were no fears of a property crash.

China records 28% rise

Coming second and third on the Knight Frank price index were China and Taiwan, recording annual rises of 28 per cent and 15 per cent, respectively. Estonia and Turkey make it to the top five with a 14.5 per cent and 13.8 per cent price increase respectively.

Thirty-nine countries of the 56 on the index recorded positive annual price growth last year compared to only 27 countries in 2012.

Several emerging markets, despite their economic wobble in 2013, recorded a strong performance. Turkey, Brazil, Indonesia and Colombia are ranked in the top ten in terms of annual price growth, each having recorded double digit growth.

The index rose by 8.4 per cent in 2013 and by 1.2 per cent in the final quarter

Knight Frank said that the headline global index was now weighted according to each country's GDP, which means that the movement of house prices in the US and China will have a greater bearing on the index's performance than that of locations such as Malta or Jersey.


Back to Index

•




INVESTORS COMPETE FOR SLICE OF

BOOMING RESIDENTIAL MARKET TUESDAY 18 MARCH 2014

Green Valley International Real Estate announced that they are investing AED1.5 billion in the UAE and AED1 billion in Turkey to develop massive residential apartments.

The new developments include a landmark residential project in Dubai Sports City with a total of 200 apartments in various sizes.

The project in Turkey, which will be in Trabzon city, will have 300 apartments.

The company had earlier announced that only 150 apartments in the project.

"We are proud to announce our new projects in Dubai as well as expand the scale of our projects in Turkey," said Ali Saeed Al-Salami, general manager of Green Valley International Real Estate.

He said: Both these markets offer an excellent growth potential for investors looking for substantial return on investments. As one of the major players in the sector, we find the time opportune to invest in these booming markets, and investors who are eyeing good growth should tap into this opportunity."

Deyaar Development, meanwhile, announced the sellout of all the residential units at 'The Atria' in the Business Bay district.

The sales event held at the H Hotel on Sheikh Zayed Road registered AED500 million in sales within hours of opening. Unveiled on 9 March, The Atria is scheduled for handover by the Q1 of 2017.

"Today's event validates Deyaar’s capability to launch and develop projects that respond to existing market needs and provide exceptional value to customers," said Saeed Al Qatami, CEO of Deyaar Development.

Tracking rent rises across prime and up-and-coming communities, real estate portal propertyfinder.ae has reported that whilst Dubai Marina and The Springs experienced a 27 percent and 30 percent year-on-year hike in rental values respectively, prices in Downtown Dubai -- encircling the magnificent Burj Khalifa -- also rose by close to 25 percent during the same period. Interestingly, rents in Dubai Sports City, an area that has risen in popularity recently, saw a dramatic 66 percent spike between January and February 2014 compared to renting prices in the first quarter of 2013.

Does this spell doom and gloom for renters? No, says Renan Bourdeau, deputy CEO ofpropertyfinder.ae.

"More than 35,000 units are expected to hit the market this year, with the majority of stock coming up in Dubailand, Dubai Sports City and Jumeirah Village, communities that offer good value. This will offer tenants the opportunity to rent in areas where their money goes further. Also, a key upshot of the upward pressure on rents may be that renters are encouraged to get a foot on the property ladder by purchasing for themselves, instead of constantly worrying about how much values will go up by next year," said Bourdeau.

Source: Arab News

Back to Index

•




EMAAR OFFERS BLVD CRESCENT IN

DOWNTOWN

TUESDAY 18 MARCH 2014

BLVD Crescent has a main tower comprising 39 levels of residential apartments, a second tower of 21 levels and a further level of podium apartments, according to the company website.

The towers will offer views of Burj Khalifa, the Dubai Fountain and the Opera District.

The project is being launched simultaneously in Dubai, Abu Dhabi, Almaty and Shanghai.

Online registration for Dubai and Abu Dhabi opens on March 19 with sales starting on March 22.

Emaar Chairman Mohamed Alabbar told Emirates 24|7 that the company was not going out replicate Downtown Dubai model anywhere in the emirate and ruled out plans to build a tower higher than 828-metre Burj Khalifa.

"Our Downtown is the Downtown. We will never build a tall building like this ( Burj Khalifa ) so Downtown will always remain the Downtown," he said.

The developer on Saturday announced plans to list up to 25 per cent of the Emaar Malls Group equity through a secondary offering of shares.

The funds raised through the sale of 25 per cent of the company, estimated to be between Dh8 to Dh9 billion (over $2 to $2.4 billion), will be primarily distributed as dividend to the company's shareholders.


Back to Index

•




ONE VILLA A DAY FOR 90 DAYS: DUBAI

SUSTAINABLE CITY'S DRIVE TO

COMPLETION

TUESDAY 18 MARCH 2014

"Work has started on the first, second and third villa clusters and we aim to commence construction on the fourth and fifth cluster by April and May, respectively," Faris Saeed told Emirates 24|7 during a site visit.

Each of these villa clusters consists of 100 units.

"We have between 500 and 600 workers onsite every day. We plan to complete 90 villas in three months, which means we will build one villa in a day," he added.

The villas are being built using precast concrete blocks to reduce wastage.

"We don't want wastage of concrete and so we get precast concrete blocks and simply fix them onsite," Saeed disclosed.

The Sustainable City, with all its components such as school, planetarium, sustainability centre of excellence, resort, horse track, etc will be completed by mid-2016.

No service fees

The developer is currently selling villas, starting Dh1,200 per square foot, which includes a golf cart, a subsidy to buy another electrical car and zero maintenance fee.

"The project offers not only a countryside living ambiance to home owners, but they will never have to pay any service and community charges.

"Our package will include zero service charges, zero community fees and zero maintenance fees for owners."

In fact, Diamond Developers will make all the villa owners partners in its 55,000 square feet retail area and 55,000 square feet office block.

"The rent generated from the commercial centres will be divided into shares and given to residents. We expect each share to cover all their costs.

"And if the income exceeds the cost then residents will take home money," he added.

So who is buying?

"Currently, 30 per cent of the buyers are Emiratis, but other nationalities also have been buying," Saeed said, without revealing the number of units sold to date.

"Majority of our buyers are end-users, or ones looking to rent them post-completion.

•




"Moreover, we aren't allowing buyers to sell their units until they are completed, so we don't see any speculators in our project."

Funding in place

According to the chairman, funds are in place to construct the project.

"We already have funds to finance the residential component while banks/financial institutions are ready to finance our resort, sustainability centre of excellence and planetarium."

At least 20 per cent of the construction area in the project will be built with eco-friendly materials, with 60 per cent of the city being landscaped.

Solar farms will cover 600,000 square feet, while 50 per cent of the cooling energy in the city will generated through solar power.

The city will have 10 MW peak solar production, 2,700 residents and a daily population of 6,000.

Green facts

- All the buildings are directed against the sun, face north, so direct sunlight is eliminated.

- All the walking areas are shaded.

- Sixty per cent of the project is landscaped.

- 100 per cent of the sewage water will be recycled.

- Each villa has been designed in a very effective way to ensure 50 per cent saving in electricity and water bills.

- Each house will have solar panels on the roof, which can hopefully produce 50 per cent of the consumption.

- There will be electric buses, operating every 15 minutes, in the city.

- The city will host social events all through the year to promote social sustainability.

- The city is open to everyone and is part of Dubailand's vision to have many attraction points.


Back to Index

•




18 MONTHS AFTER FIRE, TAMWEEL

TOWER STILL FEELING EFFECTS:

OWNERS SELLING UNITS BELOW

MARKET RATE TUESDAY 18 MARCH 2014

The uncertainty on when the restoration work will commence on Jumeirah Lakes Towers' Tamweel Tower, part of which was gutted by a fire 15 month ago, is compelling few owners to sell their apartments at a price lower than market rate.

Listings on property and classified websites reveal prices to range between Dh1,050 and Dh1,200 per square foot, nearly 16 to 23 per cent below the current rates for neighbouring towers.

Al Seef 2 and 3, located in same cluster as Tamweel Tower, are selling for Dh1,300 to Dh1,400 per square foot.

"We are selling our unit in Tamweel Tower and we have listed it with some agents as we aren't certain on when the tower will be restored," JP, an apartment owner, told Emirates 24|7.

"We took a home loan to buy the apartment. Since we can't move back to our apartment, we have rented an apartment. So now we pay for the mortgage, rent and the chiller charges. It's become too taxing for us and so we want to sell it."

This website had reported earlier that apartment owners are paying the capacity charge.

Despite listing with a number of property agents, JP, is yet to hear from them.

According to real estate agents, there is no harm in listing, but convincing someone to buy in such a tower is a different proposition.

If there is distressed selling, then is there a likelihood of someone buying in the tower? A 20 to 25 per cent discount isn't good enough, a property broker agent.

The 34-storey Tamweel Tower, which has over 160 apartments, caught fire on November 18, 2012, reportedly due to a cigarette butt thrown off a building. The fire then rapidly climbed up, setting ablaze many apartments and leaving many other damaged by smoke and water.

Unit owners have been promised restoration, but don't have a clear idea on when they can return to their apartments yet.

Knight Frank, a UK-based real estate consultancy, said this week property prices in Dubai rose 35 per cent in 2013 and are expected to rise by 10 to 15 per cent this year.


Back to Index

•




PROPERTY FEES MUST BE PAID BY

OWNERS, NOT TENANTS: RERA

WEDNESDAY 18 MARCH 2014

Dubai's real estate regulators have told developers to stop suspending any services to their units and said that property fees must be paid by landlords.

In a letter to developers, Dubai's Real Estate Regulatory Authority (Rera) warned that they must not resort to any means to claim fees unless they are specified in the emirate's laws governing the real estate sector.

"Developers must stop suspending or disconnecting any public utilities services from the property units or resort to any ways that are not specified in the law to claim any fees," Rera said in the letter obtained by Emirates 24/7.

"Claims for fees must be directed only to the landlord and not to the tenant...they must be in line with an invoice which should be attached to a letter of consent from Rera approving those fees without adding any other fees," the letter said.

The letter also warned that violators of these regulations would be fined but it did not specify the penalty.


Back to Index

•




FENCE FOR 3 DUBAI COMMUNITIES


Dubai property developer Nakheel is investing millions of dirham’s in security fencing and gatehouses at three of its most popular communities in Dubai, said a press statement.

Jumeirah Park, Jumeirah Village Triangle and Al Furjan - which between them house around 16,500 people - will all become fenced, gated communities this year, the developer said.

A contractor is already on site at Al Furjan, where fencing installation is around 60 per cent complete.

Nakheel has also appointed a contractor for Jumeirah Park and Jumeirah Village, where work will begin in May. In all, nearly 20 kilometers of 1.8 metre high fencing will be fitted at the three communities.

Nakheel is also building security gates at the three communities. The work will be out to tender shortly.

Mohamed Al Qassem, Managing Director of Nakheel Communities, said: "The new fencing and access control points at these three highly popular communities reinforce our continued commitment to enhancing our developments with a range of new amenities, facilities and services.


Back to Index

•




PROPERTY CONTRACTS IN DUBAI TO

BE MADE MANDATORY

SATURDAY 22 MARCH 2014

Property brokers have welcomed the planned introduction of mandatory contracts that could help to weed out rogue practitioners.

Dubai’s real estate regulator is set to enforce the use of the standardised contracts to better police the emirate’s property market.

The Dubai Land Department said that three of the standard contracts it issues regulating deals between buyers, sellers and property brokers would become mandatory from the beginning of May.

Standardised property contracts were first drawn up and published by the department in 2008 and are already used by many of the emirate’s property brokers, but real estate brokers are not currently required to use them.

The Land Department said that it would be drawing up new standard contracts that would have to be used in all transactions that relate to the buying and selling of property. It added that models of the new contracts could be found on its property marketplace website, eMart.

The new rules cover form F, which formalises the relationship between a seller and a buyer; form A, which formalises dealings between seller and broker; and form B, which formalises dealings between a buyer and a broker.

Under the current rules, sellers may only name three property brokers to act for them. If this requirement is included in the new forms it could make it harder for brokers not instructed on property deals to try to get a cut by claiming to represent somebody they do not.

Contracts will become formal and completed after they have been recorded and documented at the DLD.

“Having unified contracts between the parties not only avoids the misunderstanding and misinterpretation of articles that could previously have occurred, but it also guarantees the rights of all the stakeholders involved,” said Sultan Butti bin Mejren, the director general of the DLD.

“It contributes to the enhancement of the competitiveness of the real estate market in Dubai and moves it to a new phase of leadership and excellence by establishing the principles of transparency and professional standards,” Mr. bin Mejren said. “It will be of great value in assisting us to keep pace with the real estate boom currently taking place in Dubai and will promote confidence in the market.”

Property agents in Dubai welcomed the move.

“This is another step forward for Dubai to position itself as a proper, serious place to do business,” said Mario Volpi, the managing director of Prestige Real Estate. “It is likely to speed up the sales process a little. It will also make it more explicit as to who is paying what charges and fees to whom.”

Last August, Mr. Bin Mejren was quoted in The National’s sister paper Al Ittihad as saying it would introduce seven new laws this year and next aimed at further regulating Dubai’s property market.

•




A month later, the DLD announced it was doubling the transfer fee levied on each sale in the emirate to 4 per cent of a property’s value in an attempt to reduce speculation. In November the department opened a new Rental Dispute Resolution Centre to better handle rent dispute cases.

The DLD is also understood to be looking at introducing new standardised rent contracts later this year and refining Dubai’s rent index.

The department’s new rules are coming in against a backdrop of rocketing house prices and rents in Dubai, which have led to fears that the emirate could be sliding towards another correction.

In February, JLL reported that real estate prices rose by 22 per cent last year and could increase by another 10 to 15 per cent this year, putting them back in line with levels in 2008 before the global financial crisis hit.

It also predicted that rents in Dubai could increase by another 10 to 20 per cent this year after increasing by an average of 17 per cent last year.

Source: The National

Back to Index

•




DUBAI’S TIME HOTELS TO EXPAND IN

ABU DHABI


The homegrown budget hospitality brand Time Hotels is expanding in Abu Dhabi and beyond in a sign that midscale hotels are attracting investment from developers.

Founded in 2007 owning hotel apartments, the Dubai-based, Sharia-compliant hotel management company will open its third furnished residential building with 264 apartments in Abu Dhabi by the middle of this year. It is also in discussions to open a four-star boutique hotel in the city. Last month it opened a hotel apartment in Ajman with 160 units.

The company now has two four-star hotels and four hotel apartments in Dubai. The Time Residences in Abu Dhabi opened in November and a 72-unit apartment building in January.

“We plan to have 20 hotels and hotel residences in our portfolio by 2020,” said Mohamed Awadalla, the chief executive and co-founder of Time Hotels.

The possibilities created by Expo 2020 are a clear focus of excitement for the group.

“It will bring a lot of business to Dubai, and we are preparing and looking to sign more management [contracts],” Mr. Awadalla said. “Moreover, I think Abu Dhabi will also benefit from Expo 2020, and that’s why we are looking at the market.”

The mid-market segment is expected to grow the fastest in the UAE in the next five to 10 years, said Filippo Sona, the head of the hotels division in the Middle East and North Africa at Colliers International.

And there is room to grow in Abu Dhabi, where the majority of the budget hotels are unbranded.

In Abu Dhabi emirate, 62 per cent of the budget hotels are internationally branded, 22 per cent locally branded and 15 per cent are unbranded.

Emerging budget hotels are targeting many leisure travellers who prefer spending less on accommodation and more on shopping and entertainment.

“It also stimulates repeat visitation,” Mr. Sona said.

Since budget hotels have low running costs, it is an asset class that is recession-proof, he says.

It costs between US$100,000 to $110,000 to develop an 18 square metre economy room. In the luxury segment, the price can be anywhere between $400,000 to $1 million for a 45 sq metre to 55 sq metre room.

Dubai will have 2,443 economy hotel rooms by 2017 in addition to those planned and under construction, according to Mr Sona.

Time Hotels is scouting to add a luxury property in its portfolio but does not plan to move away from its budget focus, Mr Awadalla said.

•




“What we do at the four-star category is of a high standard, and with mid-market hotels we can make more money for the owners. We came into a market that is competitive and we needed a quick and fast return for the owners.”

The hotel management company has also set its sights on the wider GCC and Middle East.

Despite the unrest in Egypt, Time Hotels will go ahead with the scheduled opening of its property in Luxor at the end of the year. Called Time Tut hotel, construction of the 163-room property is almost 90 per cent complete.

“We had thought after the revolution things would settle down, and they didn’t, but I still think after elections things will get better,” Mr. Awadalla said.


Back to Index

•




17TH-CENTURY FRENCH STYLE WITH

ROYAL ROSE HOTEL IN ABU DHABI


A hotel developed in the style of a 17th-century French palace is set to open in the unlikely location of downtown Abu Dhabi.

The Bin Ham Group conglomerate, which has interests spanning oil, construction agriculture and tourism, is expected to launch its 355-room Royal Rose hotel on Electra Street this month.

Inspired by the architecture of the “grand siècle” and complete with gold leaf and ornate chandeliers, the hotel will aim to tap corporate travel to the city centre, said Gianni Malerba, the hotel’s general manager.

“The hotel is in the downtown, so we will focus on having 60 per cent of the guests from [this] sector,” he said. “We are also looking at a 60 per cent occupancy rate for the first year.”

The 19-storey hotel will have two ballrooms, with a capacity of 330 people and 150 people, three boardrooms, and three executive floors, which will feature two VIP lounges. It will initially employ 170 people, rising to 310 at full capacity.

The business travel sector generates US$653 million each year for the emirate, according to the Tourism and Culture Authority.

The 42-year-old Bin Ham Group owns the City Seasons brand, which owns and operates five four-star properties in Abu Dhabi, Dubai, Al Ain and Muscat with 1,300 rooms in total. The group first ventured into the hotels sector in the late 1990s with smaller properties in the capital.

Bin Ham Group plans another property in Dubai – next to the BurJuman mall in Bur Dubai – by the end of the year. It expects to double its portfolio by 2020.

With Royal Rose, the capital will have a new brand in its luxury market, dominated by international operators such as Westin, InterContinental, Sheraton, Hilton, Hyatt and Ritz-Carlton.

Abu Dhabi has 21 hotels with about 6,480 rooms in the pipeline for the next three years, according to STR Global.

Bigger hotel operators such as the British InterContinental Hotels Group (IHG) and New York-listed Starwood have long been a fixture in the local landscape, and have aggressive expansion plans.

IHG expects to open seven properties in the UAE by 2017, and Starwood has eight in the pipeline by 2016. IHG, which has brands such as Crowne Plaza and Holiday Inn, manages 18 properties in the UAE, Starwood, which has brands such as St. Regis, Westin, Le Méridien, Sheraton and Aloft, has 23 in its portfolio.


Back to Index

•




TECOM MEDIA CLUSTER IN DUBAI

TOPS 2,000 COMPANIES


Dubai’s media hub is planning to develop additional office space to cope with surging demand after attracting 233 tenants last year.

A homegrown media industry revival and an influx of production companies from conflict-hit countries in the region has driven up occupancy at Dubai Media City, Dubai Studio City and International Media Production Zone.

The three business parks which are operated by Tecom Investments, a unit of Dubai Holding, signed up an additional 622,000 square feet in 2013.

With occupancy at Dubai Media City running as high as 97 per cent, the development is rapidly running out of space.

The growth of Dubai Media City had “exceeded expectations”, said Mohammad Abdullah, managing director of Tecom’s media cluster. That has created the need for some “new projects to cope with demand”, he said in an interview.

Zawya Limited, Sidel and Thomson Video Networks were among the tenants that signed up for office space last year as well as 33 production companies and 23 new media companies. Another 45 freelancers also joined the free zone media cluster.

Tecom said that its media cluster was now home to 2,000 companies. It added that 165 of its existing tenants had also expanded over the year, including Sony Music Entertainment Middle East, FRH, Arabian Radio Network and Publicist.

The company also reported that its Dubai Studio City (DSC) unit had completed construction of three sound stages – sound proof hanger like structures used for film making and television production – which are the largest of their kind in the Mena region.

“2013 was a very strong year for the Media Cluster with widespread growth and expansion across our three business parks,” said Mr. Abdullah. “I believe that 2014 has the potential to be another year of strong growth for both the media cluster and the wider media industry in Dubai.”

According to JLL, rents in the areas owned by Tecom rose as much as 35 per cent in 2013 – higher than rent increases in DIFC (11 per cent), Burj Downtown (14 per cent), Sheikh Zayed Road (27 per cent) and Business Bay (21 per cent).

“The story for Tecom is quite positive. It’s one of the few areas in Dubai where there is not much vacancy – especially in the free zone areas on the beach side of Sheikh Zayed Road where vacancy rate is less than 5 per cent,” said Craig Plumb, the head of research at JLL’s Dubai office.

“In the non free zone areas on the other side of Sheikh Zayed Road there is a lot more vacancy however, with the vacancy rate nearer to 30 per cent,” Mr Plumb added. “In the first quarter of 2014 we

•




have seen rents increase in Tecom and it is becoming the next most popular location after Downtown for office occupiers.

“These are not just media tenants – one of the key successes of Tecom was that it wasn’t limited to Media tenants. In fact much of the demand we have seen recently has been from technology companies and financial services.”


Back to Index

•




BEACH LIVING UP FOR GRABS AS

SAADIYAT DEVELOPER TDIC

ANNOUNCES APARTMENT SALE TUESDAY MARCH 18 2014

The master developer of Saadiyat Island plans to start selling another 70 apartments at the second phase of its Saadiyat Beach Residences project at the end of the month.

Tourism Development & Investment Company (TDIC) said the apartments would go on sale on March 29 at prices starting from Dh1.7 million.

TDIC said that it had sold all of the first tranche of 70 similar apartments, which went on sale in September.

It added that prices would be 10 per cent higher than last year. The available units range from one bedroom to four bedrooms.

Construction on a second batch of 201 flats was completed last year, soon after TDIC sold the 285 apartments that comprised the first phase of the Saadiyat Beach Residences project to a joint venture of the US-based property investor Pramerica and Mubadala Development, Abu Dhabi’s state investment fund.

Many of the remaining 61 apartments in the second phase have been leased out, prompting speculation that TDIC could be preparing to sell them off in bulk to another investor.

Early models of Saadiyat Island put together by TDIC show original plans for six phases of apartments at Saadiyat Beach Residences. However, TDIC said that it had no plans to begin construction on any further blocks.

“The price increase is due to the popularity of this project, the quality of the materials and finishes, the location on Saadiyat Island and in Saadiyat Beach District, which has a sea view, and finally the community services and amenities,” a TDIC spokesman said.

After falling by as much as 50 per cent during the global financial crisis, house prices in prime areas of Abu Dhabi have been rising rapidly.

According to the property broker JLL, house prices in Abu Dhabi rose by as much as 25 per cent last year and are predicted to rise again this year, albeit by a lower amount.

“Abu Dhabi is interesting because in the short term there is a lot of demand for housing as a lot of jobs are created to oversee the construction of the new airport, the new metro and the museums,” David Dudley, the head of JLL’s Abu Dhabi office said.

“However, these are jobs which are created for the short term and we have trouble seeing what will replace them over the longer term.”


Back to Index

•




HOTELS IN THE EMIRATES GEAR UP

FOR SAUDI ARABIA SPRING BREAK


Hotels in Dubai and Abu Dhabi are gearing up for the Saudi school break when families from the kingdom pour into the Emirates.

Saudi Arabian travellers remain the largest source market for Dubai. Last year, 1.35 million guests from the kingdom – or 12 per cent of Dubai’s total tourist numbers – checked into the emirate’s hotels and hotel apartments.

Starting yesterday, properties such as Tamani Marina Hotel in Dubai and Grand Millennium Hotel Al Wahda Mall in Abu Dhabi are sprucing up their apartments for the influx.

Tamani Marina Hotel is expecting an increase of 5 per cent in Saudi families over last year over the period. Saudi visitors from 8 per cent of its overall guest numbers.

The Sharia-compliant luxury hotel, where a nightly room costs Dh1,200, has 245 apartments with two to four bedrooms.

Special arrangements such as “family breakfast, kids’ play area, special menu for children, [as well as] certified baby sitters are now available,” said Sherif Elibrashi, the director of sales at the hotel. The average length of stay for the Saudi guests is between four and six nights.

Close proximity to leisure and entertainment destinations such as Jumeirah Beach Walk, the malls and Wild Wadi waterpark are bonuses for the hotels.

“Tourists coming from Saudi Arabia are very important to us, and we definitely see an increase every time they have school or public holidays,” said a spokesman at the aqua park.

At Grand Millennium Al Wahda, apartments are going fast. The hotel has 258 apartments with one to three bedrooms.

“This is a high demand period, especially for the apartment side,” said Marwan Mseikeh, the hotel manager. “Their first preference is Dubai but then they like to drop in for two to three days to Abu Dhabi.”

About 40 per cent of the hotel’s total guests in a year are from the Arabian Gulf and of that some 10 per cent are from Saudi Arabia.

“We are attached to the mall and Saudi guests like to go shopping, they need the cinema and the food court,” Mr. Mseikeh said.

Saudi guests are among the highest spenders in the UAE. In 2012, 1.12 million Saudi guests spent US$420.4 million on their Visa cards. Total spending rose 28.8 per cent over the previous year.

Continuing unrest elsewhere in the Middle East is expected to maintain the UAE and Dubai’s reputation as safe destinations to visit.

•




“I would guess that [tourist] numbers once again would increase substantially to around 12 to 13 million [this year in Dubai] given the unrest in the region, which is fuelling more visitors who may otherwise have visited countries such as Egypt, Syria, Lebanon, Libya and Iran,” said Leo Fewtrell, the general manager for Dubai Travel and Tour Agents Group.

“Added to this there is an increase in hotel rooms covering not only five-star, but more affordable three and four-star properties.”


Back to Index

•




NAKHEEL AWARDS DH563M OF

CONTRACTS FOR DUBAI MEGA

COMMUNITIES


The Dubai developer Nakheel has awarded contracts worth Dh563 million for construction projects at two of its delayed Dubai mega communities.

In a statement yesterday Nakheel said it had awarded three contracts to builders for new construction in its Al Furjan and International City projects in Dubai.

Ginco General Contracting was awarded a Dh310.6 million contract to build 249 homes at Al Furjan while United Engineering Construction had won a Dh215.4m contract to build another 152 homes at the scheme. Under both contracts, construction is due for completion in 18 months.

Nakheel started selling 400 off- plan homes in the new phase of Al Furjan in October with terraced houses going for around Dh2.85m and villas selling for Dh4.56m.

Nakheel also awarded a contract for Dh36.8m to Metac General Contracting to build a 79,000 square foot community shopping centre at International City close to Nakheel’s Dragon Mart outlet mall. Construction of the 24 shops and six restaurants is scheduled to take 12 months.

Al Furjan, near Jebel Ali, currently comprises 800 homes but was originally intended to include 4,000 homes by the anticipated completion date of June 2011. The project comprises 5.6 million sq metres.

International City was designed in 2004 along the lines of a traditional Arabian carpet, and was intended when complete to accommodate more than 60,000 low and medium-income residents. But the project was hit hard by the global financial downturn and construction slowed.

Nakheel, one of the highest-profile losers in the Dubai property crash, reported in January that the cash it collected from customers nearly doubled from Dh3.7bn in 2012 to Dh7.1bn in 2013 as homebuyers made payments on delayed projects.


Back to Index

•




RAK CERAMICS RIDES WAVE OF UAE

PROPERTY BOOM AS PROFIT RISES

22%

MONDAY 17 MARCH 2014

A shift of focus to Arabian Gulf markets has paid off for the UAE’s largest ceramics manufacturer amid the region’s construction and property boom, the RAK Ceramics chief executive said yesterday.

“The whole good thing is that the momentum of real estate in the UAE and Gulf is putting a positive impact on the market, and it will create more room for us to sell bigger volumes,” said Abdallah Massaad.

RAK Ceramics said it increased its annual profit by 22 per cent last year to touch Dh272 million, up from Dh224m in 2012.

While the UAE contributes a small portion of its sales revenues – almost 85 per cent of its sales come from outside the country – the company’s largest market is the Arabian Gulf, with Saudi Arabia taking a major chunk of production.

In a Gulf-wide survey of the construction industry last month by Pinsent Masons, about 77 per cent of the respondents reported a healthier order book for the next year compared with the last. And the cost of construction is not coming down, the survey said.

RAK Ceramics is also feeding the appetite for tiles in Germany, and for bathroom fittings in the United Kingdom, the two largest European markets for the company. Construction is also picking up in the UK, according to a poll of purchasing managers from the data company Markit and the Chartered Institute for Purchasing and Supply.

Ceramic products contributed 81 per cent of RAK Ceramics overall revenue, which touched Dh3.51bn, up 11 per cent from last year. The company also makes taps and faucets, a tableware range and paints.

It is also increasing its production capacity in factories in India and Bangladesh. In India, it is doubling its bathroom fittings capacity to 1,500 pieces a day. In Bangladesh, it is adding 500 pieces a day to its current daily capacity of 3,000 pieces. The Bangladesh plant will be expanded to produce 30,000 square metres of tiles a day, up from 20,000 sq metres a day. The company also has plants in China, Sudan and Iran.

In the UAE, RAK Ceramics has 10 showrooms – it expects to add two more – offering products directly to consumers as an alternative to cheaper imports from China.

“We are known as a quality provider, and we are not competing in the same segment,” Mr. Massaad said.

Last year, the Abu Dhabi-listed company also pared its debt by Dh149m. The stock has climbed more than 25 per cent this year after almost tripling last year. This month, media reports indicated that Ras Al Khaimah’s ruling family was said to be in talks to sell a stake valued at as much as US$391m.

•




The company, which has a market cap of Dh2.33bn, this year recommended a 25 per cent cash dividend to shareholders compared with 20 per cent a year earlier.


Back to Index

•




EMAAR MARKET CAP JUMPS NEARLY

DH3BN ON PLAN TO SELL RETAIL UNIT


The value of Emaar Properties jumped by almost Dh3 billion yesterday as investors scrambled to be part of the sale of its retail unit, which includes The Dubai Mall.

A share-buying frenzy boosted Emaar’s market capitalisation to Dh59.23 billion.

Investors yesterday rushed to buy holdings in the developer that owns one of the biggest shopping malls in the world, sending the stock to a six-month high, after it announced intentions to spin off its retail unit. It also proposed a 15 per cent dividend as well as 10 per cent bonus shares.

“What I like in this business is [that it is] exactly what local and international investors want,” said Sebastien Henin, the head of asset management at The National Investor, an Abu Dhabi-based boutique investment bank. “People are ready to die to have access to the retail sector in Dubai due to the fact that this area has strong visibility and growth is exceptional.”

Emaar surged 5 per cent to close at Dh9.10 a share on the Dubai Financial Market, one of the emirate’s two stock markets.

More than 46 million shares changed hands yesterday to a value of Dh421 million. That compares to a 15-day moving average of 21.68 million shares. Emaar regarded a blue-chip among institutional investors, is a candidate for inclusion into MSCI’s Emerging Markets Index when UAE shares are incorporated in May.

On Saturday, the developer revealed plans to sell down up to 25 per cent of its retail business in a secondary offering at a value of up to $2.45bn.

A secondary offering is the sale of new stock from a company that has already gone public.

Existing shareholders would be expected to be given priority for allocations, analysts said.

The company said it planned to make use of the funds generated from the public to reward shareholders as dividend distributions.

Mr. Henin said there is a real possibility that some of the cash generated will also be used as a cushion for its developments scheduled in the coming quarters, such as projects planned for Dubai Expo 2020.

“It should unlock some value for shareholders and investors will be able to assess each business line separately,” Mr. Henin said. “On the one hand there’s the pure real estate line and the other is the recurring income that comes from the malls and the hotels.”

While the move has been welcomed by investors, it has also fuelled speculation over how the transaction will take place in light of the current legal framework.

“So far, the current law and regulation does not allow a sell-down to go public – unless it’s been exempted from current law, ” said Majd Maaiteh, the head of securities at National Bank of Abu Dhabi.

•




The current framework does not allow for companies listed on the DFM to sell less than 55 per cent to the public, he said. “The other scenario is that the current companies law is subject to being amended that will allow companies to go public by selling down 30 per cent of their capital - but we don’t know when that will be implemented.”

Otherwise, Emaar will have to seek a global depositary receipt on international markets, such as in London or on the Nasdaq Dubai exchange, he added.

If 25 per cent of the company is valued at Dh8bn to Dh9bn, that makes the value of the total retail unit about Dh36bn, and its price to earnings ratio at 16 times, Mr. Maaiteh said.

Also, once the company is listed, it will no longer be completely under Emaar’s book and would affect dividends to shareholders and the valuation of Emaar going forward, he said.

“All these things need to be carefully addressed,” Mr. Maaiteh added.


Back to Index

•




APARTMENT AND VILLA REVENUES

RISE MORE THAN 40% FOR DUBAI’S

EMAAR


Emaar Properties said revenues from apartment and villa sales rose by more than 40 per cent last year to top Dh4.9 billion, overtaking revenues from the company’s hospitality and leasing operations.

Emaar, the developer of the world’s tallest tower, reported that revenue from apartment sales rose 44 per cent to Dh3.6bn. while revenue from villa sales rose 41 per cent to Dh1.3bn.

It made the disclosure in a financial statement published on the Dubai bourse yesterday. Proceeds from sales of plots of land and offices fell 13 per cent over the same period to Dh590 million.

The figures reflect Dubai’s booming house prices which the property agent Jones Lang LaSalle estimates increased 22 per cent last year and could reach 2008 peak levels this year.

At the same time, Emaar said that revenues from its hospitality and leasing operations increased solidly to a total of Dh4.8bn.

Rental income from Emaar’s leased properties and related income increased 20 per cent to Dh3.3bn the company said, while revenues from its hospitality business rose 10 per cent to Dh1.51bn.

The news comes just two days after Emaar revealed plans to sell down up to 25 per cent of its retail and malls division in a secondary offering at a value of up to US$2.45bn, pushing up Emaar’s share price 5.08 per cent on Sunday and by another 1.65 per cent in trading yesterday.

It also came as the company announced the sales launch for its latest housing project, a development of 300 apartments located in two linked 39-storey and 21-storey towers, dubbed BLVD Crescent.

Back in February Emaar posted a 21 per cent increase in 2013 full year profits from to Dh2.5bn.

“Emaar has shown significant growth in the revenues for its villa and condominium sales which are rising at a far faster level than revenues for other parts of the business,” said Vijay Harpalani, an assistant fund manager at Al Mal Capital. “It is possible that they could enjoy the same growth this year, meaning that the real estate side of the business is really driving growth.

“However, there is a lot more risk in this side of the business. This is one of the attractions of the secondary offering that it allows investors to buy into the less risky side of the operation where there is much more visibility on assets.”


Back to Index

•




REGIONAL SOVEREIGN WEALTH FUNDS

RACK UP $5.6BN WORTH OF DEALS


Middle East sovereign wealth funds completed seven major direct property deals worth a total of US$5.6 billion last year – and more big ticket purchases are expected over the coming months.

The deals involved commercial, retail and hotel properties.

According to the property broker JLL, the Kuwait Investment Authority sealed the largest middle Eastern sovereign wealth fund deal last year when St Martin’s, the property division of the Kuwait government, agreed to buy the 13-acre More London office and restaurant complex near London Bridge in London for $2.7bn.

Abu Dhabi Investment Authority, the world’s second largest sovereign wealth fund, sealed the second largest deal for Middle Eastern funds last year when it bought a $712 million portfolio of 31 hotels across Australia from Tourism Asset Holdings.

Abu Dhabi Investment Council (Adic) was third on the list for spending $597m on a series of investments in a portfolio of six Australian shopping malls through the Australian fund manager Challenger.

Other significant deals on the list included Kuwait Investment Authority’s $594m purchase of the 515,000 square foot 5 Canada Square office block in London’s Canary Wharf and its deal to buy the 1200 19th Street office block in Washington DC for $296m as well as Qatari Diar’s $261m deal to buy the W Hotel in Barcelona.

JLL predicted that Middle Eastern sovereign wealth funds would continue to increase their investments in international real estate, both in established world cities as well as in an increasing number of emerging locations.

“This combination of improving domestic economies and the consistent demand for oil and gas will provide Middle Eastern funds and individuals with increasing amounts of capital with which to invest in commercial property globally,” said Fadi Moussalli, head of JLL’s International Capital Group for the Middle East and North Africa.

“With commercial real estate markets continuing to grow and their transparency and sophistication improving year on year, the number of options available to capital rich investors continues to increase,” he added. “While we expect their focus to remain on the core markets of Europe and the United States, key cities in emerging markets are offering a greater number of opportunities for investment.”


Back to Index

•




ETIHAD ON RESIDENTIAL LEASING

SPREE IN ABU DHABI AS STAFF

EXPANDS


Etihad Airways is on the hunt for new apartments as it hires thousands of employees to serve its rapidly expanding network.

The Abu Dhabi carrier said in a newspaper advertisement that it was looking to lease residential apartments for up to four years.

It is seeking buildings with at least 28 apartments.

Etihad has been rapidly increasing its workforce as passenger growth through the capital accelerates.

By the end of last year, Etihad had 13,535 employees, up 27 per cent from 10,656 in 2012. Cities such as Abu Dhabi, Dubai and Doha are becoming central stages for world travel, as more passengers switch planes on long-haul routes, eating into the market share of more established hubs in Europe.

Craig Plumb, the head of research at Jones Lang LaSalle, said that the demand for apartments coming from Etihad was “good news” for the Abu Dhabi market.

“This will add more confidence in the rental sector and improve the sentiment in the market,” he said. “There are a significant number of unoccupied apartments in Abu Dhabi. The announcement is positive because airlines take these apartments on a long-term basis.”

Prime residential rents in Abu Dhabi were up by about 17 per cent last year, according to JLL.

Etihad’s rapid expansion mirrors that of the Dubai-based Emirates Airline, which has also been adding hundreds of new apartments and villas to accommodate cabin crew, pilots and engineers.

The carrier said last year that it was developing five residential towers in Silicon Oasis to accommodate hundreds of its staff.

Emirates leases and owns more than 12,000 apartments and villas in Dubai, making it one of the city’s largest landlords.


Back to Index

•




With 29 years of Middle East experience, Asteco’s Valuation & Advisory Services team brings together a group of the Gulf’s leading real estate experts.

Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai, Northern Emirates, Qatar, Jordan and the Kingdom of Saudi Arabia not only provides a deep understanding of the local markets but also enables us to undertake large instructions where we can quickly apply resources to meet clients requirements.

Our breadth of experience across all the main property sectors is underpinned by our sales, leasing and investment teams transacting in the market and a wealth of research that supports our decision making.

John Allen BSc MRICS

Director, Valuation & Advisory +971 4 403 7777 [email protected]

Julia Knibbs MSc

Manager – Research and Consultancy - Dubai +971 4 403 7789 [email protected]

VALUATION & ADVISORY

Our professional advisory services are conducted by suitably qualified personnel all of whom have had extensive real estate experience within the Middle East and internationally. Our valuations are carried out in accordance with the Royal Institution of Chartered Surveyors (RICS) and International Valuation Standards (IVS) and are undertaken by appropriately qualified valuers with extensive local experience. The Professional Services Asteco conducts throughout the region include: • Consultancy and Advisory Services • Market Research • Valuation Services

SALES

Asteco has established a large regional property sales division with representatives based in UAE, Saudi Arabia, Qatar and Jordan. Our sales teams have extensive experience in the negotiation and sale of a variety of assets. LEASING Asteco has been instrumental in the leasing of many high-profile developments across the GCC.

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

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

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

news brief 12 - asteco department . news brief 12 ... the dedicated portal will significantly...

Documents