news brief 20 - asteco property managementdld said that to date it has surveyed more than 20,000...

DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN

© Asteco Property Management, 2016 asteco.com | astecoreports.com IN THE MIDDLE EAST FOR 30 YEARS

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

NEWS BRIEF 20 SUNDAY 15 MAY 2016


© Asteco Property Management, 2016 asteco.com | astecoreports.com

IN THE MIDDLE EAST FOR 30 YEARS



REAL ESTATE NEWS UAE

UAE LAW: AFTER JOB ENDS, 30 DAYS TO VACATE STAFF ACCOMMODATION

EXPO 2020 SPENDING TO HELP DUBAI'S ECONOMY OUTPERFORM PEERS

INDIAN HOTEL CHAIN LEMON TREE EYES UAE EXPANSION

DUBAI

SHAH RUKH KHAN-BACKED HOME PROJECT TAKES OFF IN DUBAI

EMAAR LAUNCHES ANOTHER LUXURY PROJECT... AT EMIRATES HILLS

EGYPT’S PALM HILLS AIMS TO SET UP SHOP IN DUBAI

DUBAI BUILDINGS TO BE GIVEN STAR RATINGS

DUBAI MARINA’S TAKE ON EUROPEAN-STYLE LIVING WITH THE ‘WOW-EFFECT’ – IN

PICTURES

NAKHEEL MALL RISES ON DUBAI’S PALM JUMEIRAH

DUBAI MARINA TENANT SUSPICIOUS OF LANDLORD ‘MAKING THREATS VIA

WHATSAPP’

UNION PROPERTIES Q1 PROFIT UP 50% DESPITE LOWER INCOM

DAMAC PROPERTIES FIRST-QUARTER NET PROFIT DROPS 15 PER CENT

RITZ-CARLTON DIFC REVIEW: PRIME DUBAI LOCATION WITH MORE TO OFFER THAN

JUST BUSINESS EXPERTISE

DANUBE FOCUS ON AFFORDABLE HOMES BOOSTS SALES AND TURNOVER

DUBAI LAND DEPARTMENT COMPLETES OVERHAUL OF BUILDING CLASSIFICATION

SYSTEM

ABU DHABI

ALDAR PLANNING MORE MID-INCOME SCHEMES IN ABU DHABI

NORTHERN EMIRATES

SHARJAH RENTS FALL 8% AND DECLINE SET TO CONTINUE IN LINE WITH DUBAI

GCC | INTERNATIONAL

SAUDI BINLADIN TO LAY OFF ANOTHER 14,000 STAFF, BRINGING TOTAL DEPARTURES TO 69,000






DUBAI LAND DEPARTMENT COMPLETES

OVERHAUL OF BUILDING CLASSIFICATION

SYSTEM

Sunday, 08 May, 2016

Dubai Land Department (DLD) has completed an overhaul of its Building Classification System to cut down on

paperwork and allow its surveyors to work more easily in the field.

DLD’s Technical Affairs Department said that the upgrade meant workers whose job it is to survey and classify

buildings can now do so on site using tablet computers connected via cellular networks. It said measurements

and photos taken on site can be directly entered into DLD’s own database via tablets connected through 4G

networks. A 60-point questionnaire on buildings is then completed and a rating given to each building. Surveys

completed in apartment buildings only cover common areas to respect privacy.

DLD said that to date it has surveyed more than 20,000 pieces of land and over 120,000 buildings, including

apartments, offices, schools and retail buildings. The aim of the surveys is to produce a more accurate set of

building measurements that will be used for calculating the level of rents and service charges that can be levied,

and DLD said it could benefit government bodies, regulators, landlords, tenants and investors.

Sultan Butti Bin Mejren, the DLD’s director-general, said: “Our whole project team is extremely proud to see our

technical developments and hard work bearing fruit."

Dubai’s government was the first in the world to throw its support behind the call for one global set of standards

for measuring properties. In September 2013, it said that it would adopt the International Property Management

Standard (IPMS), which had been proposed by a number of international trade bodies including the UK’s Royal

Institution of Chartered Surveyors.

Source: The National

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DANUBE FOCUS ON AFFORDABLE HOMES

BOOSTS SALES AND TURNOVER


Danube Group reported an 83 per cent increase in turnover last year to Dh5.1 billion, partly buoyed by property

sales.

The Dubai-based group’s founder and chairman, Rizwan Sajan, attributed the growth of the company to the

success of Danube Properties – the affordable homes development arm of the business that was launched in

mid-2014.

A focus on middle-income housing has helped to boost the overall real estate project value of Danube Properties

to about Dh1.8bn, according to the company, despite an overall decline in Dubai house prices.

The company launched four projects in the Al Furjan community – Glitz I, II and III, and the Ritz by Danube, now

renamed Starz by Danube – last year. Mr Sajan has said that he anticipates launching “three to four" residential

projects every year.

“We started the properties division with a clear focus on affordable housing segment," said Mr Sajan. “We

identified the gap that existed in the market, which was too focused on luxury and super-luxury segments."

Last week, the company launched its sixth project, the Dh300 million Glamz Danube. Mr Sajan said that he was in

talks to acquire more land plots that would enable two further schemes to be brought to market this year – one

ahead of September’s Cityscape Global conference in Dubai and another before the end of the year.

“We believe that if a project is offered at right price, at right payment terms and at right location, there’ll always be

buyers in the market," said Mr Sajan.

On the retail side of the group’s business, Mr Sajan said that he plans to invest Dh200m into six new stores,

bringing the total in its network to 50. He is also forecasting a growth of 15 to 20 per cent this year for the group’s

building materials business.

A real estate report published by the Dubai-based lender Mashreq yesterday forecast further declines in Dubai

house prices throughout this year as more supply is built.

“Close to 50,000 units are scheduled to enter the market over the following two years, representing a 10 per cent

increase over existing supply," the report said. “In the near term, subdued growth and transactional activity

anticipated over the following 12 months offers an opportune environment to source discounted acquisitions."


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RITZ-CARLTON DIFC REVIEW: PRIME DUBAI

LOCATION WITH MORE TO OFFER THAN

JUST BUSINESS EXPERTISE


It is location, more than brand loyalty or star rating that matters when picking a hotel for a business trip. Being

close to the conference, exhibition hall or office to attend meetings often takes precedence, especially for a short

work trip.

For a prime business location, the Ritz-Carlton in the Dubai International Financial Centre (DIFC) has both the city’s

financial hub as well as the Dubai World Trade Centre on its doorstep.

But keen to shun its image as a business-only hotel, it also offers a high-end spa, seven restaurants and cafes and

has another advantage to its location – its proximity to The Dubai Mall.

The 341-room hotel, which opened in 2010, comprises 38 club rooms, 80 suites and two royal suites, and is

decorated in the signature style of the Ritz-Carlton brand – a modern take on French Imperial archi¬tecture. The

effect is one of calming grandeur; the bustle of the DIFC becomes a distant whimper once inside the room.

Staying in one of the Dh1,970-a-night club suites, I had a spacious living area, with a guest bathroom, separate

seating and dining area – all closed off from the bedroom if you decide to hold meetings in the suite. As well as a

flat screen TV, there is a large desk connected to several international plugs and stationery.

The internet is easily acces¬sible via Wi-Fi or Ethernet cable with speeds good enough for all tasks.

Any potential wardrobe mishaps are avoided with an iron and ironing board, sewing kit and shoe shine already

supplied. And Asprey amenities in the bathroom aids those who have forgotten their toiletry bag.

Room service can be enjoyed at the living room’s four-seater glass dining table – a club sandwich sets you back

Dh60 and steaks start at Dh320. Prices are on the higher side, but this, after all, is the Ritz.

For those on a tighter budget, club room and suite guests have access to the Club Lounge, where light salads,

meze, sandwiches and hotplates such as grilled chicken and shrimp, are available throughout the day. With high-

speed Wi-Fi, international newspapers and plenty of seating, the lounge proved an excellent spot for casual work.

What lets this hotel down is its proximity to its residential apartments. The rooftop pool is a messy affair with kids

and nannies – not ideal for that downtime moment.

q&a intimate check-in offered

How fast was check-in?

Those staying in Club rooms and suites can bypass the lobby and head straight to the Club Lounge for a speedier,

more intimate check-in experience.

Is there is a business centre?






Yes. Open 24 hours a day, it offers plenty of computers and workspaces and 75mbps internet. The hotel also has

eight different meeting rooms for those after a more formal setting for meetings. Prices for rooms start at Dh500

per hour, with additional costs incurred if you add on lunch or drinks.

And if I want to relax during my downtime?

There is a gym and the spa offers Dh285 express treatments – such as a cleanse facial or a back de-stressor

massage – that you can fit in between meetings. There are two swimming pools – one indoors and the other on

the roof, but best to avoid this one as it is shared with the residential guests. Even a stroll through the pro¬perty

can be a rather cultural ¬affair with displays of art loaned by the Opera Gallery.

What about dining options?

There are seven cafes and restaurants in the hotel. Cafe Belge does a set business lunch menu starting from

Dh100. While the choice is limited, it is convenient for a quick business lunch.

Is it easy to get around Dubai?

There is usually a steady stream of taxis outside the lobby. The metro station is a short walk away and the hotel

also has its own chauffeur-driven cars.


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DAMAC PROPERTIES FIRST-QUARTER NET

PROFIT DROPS 15 PER CENT

Monday, 09 May, 2016

The Dubai developer Damac Properties reported a 33 per cent decline in year-on-year sales for the first quarter as

buyers adopted a watch-and-see approach.

Revenue fell to Dh1.62 billion compared with Dh2.4bn a year earlier. Net profit also dropped by 15 per cent to

Dh1.05bn. The developer booked Dh2bn worth of off-plan sales during the quarter – a drop of 28 per cent on the

same period last year.

Damac said booked sales were flat quarter-on-quarter and were 5 per cent higher than at their recent low point in

the third quarter of last year.

During the period, it handed over 306 units at the Damac Maison Royale The Distinction project in Business Bay.

The developer expects to hand over between 2,700 and 3,000 new units by the end of this year. Damac said that it

had broadened its product range during the quarter through the launch of the six-tower, four million square foot

Aykon City development fronting Sheikh Zayed Road.

“The levels of interest, activity, transaction values and volumes are solid. We remain very positive on the future of

the real estate sector in Dubai and expect very healthy progress as further infrastructure investment leads

developments through 2020," said Hussain Sajwani, the company’s chairman.

Arqaam Capital said the revenue figure posted was 15 per cent lower than its expectations and that the off-plan

sales figure had been near to the lowest Damac had recorded for 12 quarters.

In a research note, analyst Mohammad Kamal said: “Off-plan sales have begun to trend in line with the broader

market’s weak appetite for home ownership, as we continue to believe that foreign marginal buyers are absent

and resident buyers remain on the sidelines until primary and secondary residential market prices stabilise."

It also said land sales fell by 74 per cent to Dh292m, which was partly because more of its new sales are in high-

rise schemes.

“We remain wary on sales momentum in Akoya Oxygen as more than 40 per cent of land remains unsold," said

Mr Kamal.

Despite this, Arqaam Capital maintained its buy recommendation, stating that gross profit margins of 61 per cent

were the highest in its industry. It has a target price of Dh3.20 on Damac’s shares, which closed 4 per cent lower

yesterday at Dh2.37.

Hazem Abdallah, Damac Properties’ vice president of investor relations, said land sales fell as it focused heavily on

the launch of Aykon City in the quarter, where it sold Dh500m worth of apartments within six weeks of its launch.

That led to less of an emphasis on sales at Akoya and Akoya Oxygen, but there were “a slew of secondary

launches" planned for both later this year.

Mr Abdallah also said market sentiment this year would be broadly similar to last year. “There is definitely interest

in Dubai … we are confident that we will end the year better than we started it," he said. “And at Damac, we create






demand. We’ve done 115 roadshows in 23 cities in Q1. We’re not people who sit and wait for people to go past

the agency window."


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UNION PROPERTIES Q1 PROFIT UP 50%

DESPITE LOWER INCOM

Tuesday, 10 May, 2016

Union Properties reported a 50 per cent year-on-year increase in first quarter profit, despite lower income, the

Dubai-listed firm said.

Net profit attributable to equity holders in the three months ending March 31 reached Dh42.1 million, up from

Dh28.1m in a year-earlier period, the company said in a statement to the Dubai Financial Market. The profit

increase was achieved despite a 17.5 per cent decline in total income to Dh213.4m, down from Dh258.5m in a

year-earlier period.

Revenue from contracting and operations was 7.8 per cent lower at Dh131.7m, and property management and

sales revenue was 12.5 per cent lower at Dh16.3m.

The developer is planning to launch soon a project containing a hotel and retail units known as The Link,

chairman Khalid Bin Kalban said at last week’s launch of Dh450m Oia Residences project in Dubai’s Motor City.

“We’re finding it to be a very good time to build because contractor prices are astonishingly good as far as

developers are concerned," he said.

He added that although the current market for property sales is “soft", he expected prices to pick up again next

year.

“We are riding this cycle and I think the market will rebound hopefully within one year’s time. I think by the end of

2017 it looks positive," Mr Bin Kalban said.


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ALDAR PLANNING MORE MID-INCOME

SCHEMES IN ABU DHABI


Aldar Properties plans to add mid-income housing to developments such as Shams Abu Dhabi and Al Raha Beach

following the success of its Meera Shams scheme launched in June last year.

The Abu Dhabi developer on Tuesday reported a 15 per cent year-on-year increase in first quarter profits to

Dh654 million.

“On the middle income segment, we are planing more of those kinds of development across our key destinations.

That will be a recurring theme within our development pipeline," said the chief development officer Talal Al

Dhiyebi.

Aldar sold 90 per cent of the 408-unit Meera Shams scheme in less than six months.

“We are now in design stages for similar products to Meera," he added.

Mr Al Dhiyebi did not say when the new homes would be built.

Aldar recently launched the Dh6 billion, 1,315-villa Yas Acres scheme and is seeing “very strong demand", he said.

During the first three months of 2016, the company sold 320 homes, generating Dh940m in sales.

Of these, 132 were sold at its West Yas project for Dh616m and 188 were sold between the Mayan, Meera and Al

Nareel projects for a combined Dh324m.

In April, it released a further 144 units at Mayan on Yas Island, bringing the total number of units launched to 512.

“I think the real estate market is still strong in Abu Dhabi," said Mr Al Dhiyebi. “Demand and supply for quality

products in Abu Dhabi has been relatively balanced."

Average selling prices at Mayan were Dh1,400 to Dh1,500 per square foot, which is “slightly higher" than the

prices it was selling units at its Ansam and Hadeel developments 12 months earlier.

The company attributed strong profit growth to a 10 per cent increase in gross profit for recurring revenues, due

partly to Yas Mall reaching capacity.

About 61 per cent of the Dh1.23bn of revenue generated in the quarter – a 4 per cent year-on-year increase, came

from recurring sources.

Aldar’s chief financial officer Greg Fewer said that about one-third of its recurring revenue comes from retail,

another third from residential schemes and the rest from hotels, schools and other sources.

He said it wants to invest about Dh3bn in its recurring revenue portfolio, and had already allocated Dh900m of

this on a new school, the expansion of Al Jimi Mall in Al Ain and the acquisition of Daman House in Abu Dhabi’s

Capital Centre district.

He also said the company had a current capital expenditure programme of Dh5.2bn, which will be spent on

delivering existing projects over the next 24 to 29 months. Current debt levels stand at Dh6bn.






Asjad Yahya, the head of research at Dubai-based Shuaa Capital, said Aldar’s investment portfolio “continues to

do well".

“It looks like they will meet their target of Dh1.6bn of net operating income for this year."

He said that there was still a lack of consensus over how property markets in the UAE are currently performing.

“But I personally think that we might – dependent on oil staying steady and the US dollar coming down a bit – be

coming to the bottom. The fact that we’ve seen good sales from Emaar in Q1 and now from Aldar is positive."


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INDIAN HOTEL CHAIN LEMON TREE EYES

UAE EXPANSION


India’s Lemon Tree Hotels aims to cash in on growing Indian tourist and corporate travel to the UAE, with plans to

operate eight properties in the next three years.

The mid-scale hotel operator is looking at a mix of hotels and serviced apartments in Abu Dhabi, Fujairah and

Dubai, where it expects to operate its first property.

“You go where your customer goes, or where the demand will be created, and it is the spending power of Indians

that we are trying to harness," said Rattan Keswani, the deputy managing director of Lemon Tree Hotels.

“Moreover, most of the development here is in upscale categories and although a larger number of travellers are

in the mid-scale, no body is filling the gap."

India was Dubai’s top source market for tourists last year, contributing with 11 per cent of its 14.2 million visitors.

Lemon Tree has tied up with the Sydney-based real estate agent Raine and Horne to open Lemon Tree properties

in the region, including in Saudi Arabia and Qatar.

The company, which operates properties under the Lemon Tree and Red Fox brands, said the planned hotels

would have between 60 and 100 rooms on average, and could include pool, spa and up to three restaurants.

Lemon Tree Hotels is also looking at Sri Lanka and the Thai capital Bangkok.

Sanjay Chimnani, the managing director of Raine and Horne, said it would be looking at neighbourhoods in Dubai

such as Jaddaf, Business Bay, City Walk, Al Barsha, Jumeirah Lakes Towers, Jebel Ali and Jumeirah Village Circle to

open more properties.


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DUBAI MARINA TENANT SUSPICIOUS OF

LANDLORD ‘MAKING THREATS VIA

WHATSAPP’

Wednesday, 10 May, 2016

We rented a master bedroom in Dubai Marina for six months for Dh6,000 a month. The landlord claimed to be

the owner of the apartment, hence subletting was legal. However, he said everything will be communicated via

WhatsApp. Every month, on receiving the rent, he would message us saying he had received x amount. On

moving into the apartment, we gave him a deposit of a month’s rent – refundable when we leave. He had

mentioned this as well in the WhatsApp message. However, over the past five months of living in the apartment,

he has given us hell. Light bulbs would go off, kitchen electronics including the gas don’t work properly and so on.

He never bothers to repair anything on time. Now it’s our final month and we have decided not to give him the

rent as he already has the deposit which can be adjusted and we were scared he will not return the money.

Dh6,000 is a big amount and we do not want to lose it, but he is threatening to kick us out. We proposed a

settlement where we will give him some money as a deposit, but he refused it and has given us two days to

decide, following which he will kick us out if we don’t pay the rent. He said he will give us a receipt guaranteeing

return of our deposit and a copy of his passport. I am in two minds. My friend suggested I ask the police what

would be best but I don’t want to involve them for fear that it will backfire on me. CC, Dubai

Subletting is not allowed unless the landlord is aware of the sublet and allows for it in writing to his direct tenant.

You say the landlord claims to be the owner (which, incidentally, doesn’t make your agreement a sublet), but you

do not say how this person has proved that. Potential tenants need to see proof of ownership, especially when

money changes hands. Communicating via WhatsApp or any other form of social media is not ideal and has not

been tested in court as a form of proper evidence should any specific case go that far. I would therefore question

the reliability of this person, especially as he has not been very responsive towards the maintenance of the

property. Landlords have a duty of care to their tenants in exchange for the rent and are generally responsible for

the maintenance of the property.

My advice would be to vacate now. In my opinion he is not reliable enough, and I certainly cannot guarantee you

would get your deposit back if you do decide to pay the rent on top of him having your deposit for the last month.

Work out what is owed by you for the few days you have stayed there this month and request he refunds the

deposit on vacating the room. If things get nasty, I would speak to the police. I suspect he is not the landlord and

if the police do get involved, he would have to prove to them that he is the owner or produce a letter from the

landlord allowing him to sublet.

My question is regarding my rental contract in Sharjah. I renewed my contract on March 22 for an agreed rent of

Dh50,000 and gave the cheques to the property management company. My first cheque of Dh13,250 has already

cleared and still I am unable to get a copy of the original tenancy contract signed by the landlord. The property

management firm keep saying that the owner is not agreeing on the rent. What are my options here? I badly need

a contract to renew my family’s visas. HR, Sharjah






You mention that you have renewed your contract on “an agreed rent of Dh50,000" but agreed by whom if now

the management is saying that the landlord is not agreeing to this rent? The solution is straightforward, either the

landlord proceeds with the rent (as agreed) or your first cheque amount is returned immediately and you start

renegotiating again. Landlords in Sharjah cannot increase the rent in the first three years of the tenancy. If you

are out of this period, the landlord has the right to increase the rent in the fourth year and at the end of any

second year period thereafter.

Sharjah municipality has a rent dispute committee under its direction which acts as a decision-maker addressing

all disputes relating to rents between landlords and tenants, so if communications break down, my advice would

be to file a case here.


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SHARJAH RENTS FALL 8% AND DECLINE SET

TO CONTINUE IN LINE WITH DUBAI


Rents in Sharjah as set to continue dropping in 2016 after experiencing an 8.3 per cent year-on-year fall in the first

quarter of 2016, according to Cluttons.

The property consultancy said rents over the three-month period dropped by 5.7 per cent, fuelled mainly by

rapidly-declining villa rents. Average villa rents have dropped by 13.2 per cent, while average apartment rents are

1.5 per cent lower.

Cluttons said that weaker conditions in the Sharjah market are likely to continue as the year progresses, with

average rental falls of between 3 and 5 per cent predicted.

Faisal Durrani, the head of research at Cluttons, said: “Rents across Sharjah’s more affordable areas remain linked

to the performance of Dubai’s rental market. With a weak short-term outlook for Dubai, we do not expect to see

any turn around in rental value growth until jobs linked to the World Expo in 2020 start to materialise, which we

should start to see in the next 12 to 18 months.

“Until then, the rental market in Sharjah is expected to remain subdued."

Cluttons said that demand for gated communities remains strong, citing both Majid Al Futtaim’s Al Zahia and the

Dh2.4bn Tilal City project as examples.

It said that these units remain affordable when compared with Dubai, with three-bed villas typically commanding

rents of Dh90,000 per year, compared with between Dh120,000-Dh340,000 in Dubai communities.


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NAKHEEL MALL RISES ON DUBAI’S PALM

JUMEIRAH


Construction of Nakheel Mall on Palm Jumeirah is approaching 50 per cent complete, according to the Dubai

developer.

Nakheel said that the mall’s three underground parking levels, containing 4,000 spaces, are “nearly complete",

with the overall superstructure due to be finished in the third quarter of this year.

It added that work is also on track on the mall’s VIP entrance and rooftop features, which include two fountains

and two waterfalls which “plunge 65ft into the mall".

The mall will have five retail levels with 350 shops, restaurants and leisure attractions.

“Nearly 60 per cent of shop space Nakheel Mall has been booked, with Waitrose, Vox Cinemas, Adidas, Breitling,

French Connection and Montblanc just some of the big names on board," Nakheel said in a statement.


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DUBAI MARINA’S TAKE ON EUROPEAN-

STYLE LIVING WITH THE ‘WOW-EFFECT’ – IN

PICTURES

Thursday, 12 May, 2016

Loft living has moved far from its roots in the 1970s and ‘80s, when artists reoccupied and converted space within

cheaper, industrial buildings to create amazing living spaces in the heart of cities like New York and London.

Yet despite most residential units in Dubai Marina and "new Dubai" not existing until about 10 years ago – long

after the artists in those original spaces had sold out to financiers wanting to live in the heart of the city – doesn’t

mean that the original inspiration behind such spaces has been lost.

For instance, this two-bed, Dh3.5 million flat up for sale in Jumeirah Beach Residence retains that original New

York feel, according to Daniel Garofoli, a luxury sales specialist at the property agency Luxhabitat.

For a start, it was built as a duplex apartment, giving it the type of double-height ceilings and natural light flooding

that just isn’t available within simplex apartments.

Secondly, this particular unit, which is just below one of the penthouses built in the Murjan cluster, was

completed to shell and core by the developer and then fitted out to a bespoke design created by a team from

New York.

Therefore, exposed ceilings and the raw concrete walls remain in place (albeit painted white), but their starkness

has been offset by the interior design and the use of materials, such as the natural wooden floors installed

throughout, and light furniture.

In total, the 1,736 square feet property contains two bedrooms with en suite bathrooms. The master bedroom

has a glass wall that divides the bedroom from the rest of the apartment, but can be closed off for pri¬vacy using

curtains. The bathroom also has a showpiece free-standing bathtub and a capsule shower.

Bespoke fitted wardrobes and kitchen cupboards help to remove any visual clutter, and there is a fitted bookshelf

beneath the staircase linking the building’s two levels.

Lots of use has been made of technology, too – from the designer German appliances in the kitchen, the Loewe

TV with surround sound and a separate cinema projector beaming on to a 10 metres high wall that is visible

either from upstairs or downstairs.

If you’re not watching TV, the views outside of the windows are also breathtaking, looking out on to Dubai Marina

and beyond to Jumeirah Lakes Towers and the Emirates Living community. Partial sea views are also available

from the bedrooms.

Q&A

Daniel Garofoli, a luxury sales specialist at Luxhabitat, tells Michael Fahy what makes this Jumeirah Beach

Residences loft so different:

How would you describe this flat?






It’s young and urban; very Euro¬pean in style. Its main selling points are its double height exposed ceiling, the raw

concrete walls, the stylish surrounding, the bright colours, the clear and straight lines of the interior design and

natural wooden floors. It’s an apartment with a really positive vibe, it gets naturally lit and the white interior

reflects the incoming light.

Who owns it?

A young businessman. He bought it for his personal use but now travels so much for his business that it is rented,

for about Dh245,000 per year.

Who would live in a house like this?

I sold three similar loft-style apartments last year and the buyers were all pretty much the same. They were

young, open-minded, creative and cosmopolitan types. The clientele that buys loft apartments is unique and they

want to reflect that in their way of living. They don’t wear ordinary clothes, they don’t drive ordinary cars, they

don’t want to live in ordinary apartments. They want the "wow-effect" without showing off and want to reflect

their personality in the way they live.

What about the location?

JBR is a prime beachfront development that consists of six clusters, each with six to eight buildings. Murjan is the

first cluster and this is on the 46th floor. Each tower has a community gym and pool area, as well as 24-hour

security and gated access. The beach is a two minute walk away from the development and you have plenty of

restaurants, supermarkets and shops directly at your doorstep.


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SAUDI BINLADIN TO LAY OFF ANOTHER

14,000 STAFF, BRINGING TOTAL

DEPARTURES TO 69,000


Saudi Binladin Group has confirmed that it is working on processing final payments for about 14,000 workers that

will allow them to leave the company within the next month, following on from the recent departure of about

55,000 staff.

The company, which had employed more than 200,000 staff before its recent troubles, had previously terminated

the contracts of more than 35,000 employees, who “were repatriated to their home countries upon receipt of

their full due payments", a spokesman for the contractor’s parent firm, Binladin Holding Company (BHC), told The

National.

Alongside this, about 20,000 workers had resigned from the firm and had their work permits transferred to other

employers.

“The group is currently working on ending the services of the remaining batches, estimated at around 14,000

employees, and processing their due payments," the spokesman said. “This entire programme is expected to

complete by the end of May, early June 2016."

The spokesman also said that it had completed payments to about 10,000 staff who had been owed wages

following a recent intervention from the kingdom’s ministry of labour. It said it would pay overdue wages to

remaining employees “as the required cashflows from our clients" filter through to it.

Saudi Binladin is the kingdom’s biggest contractor and had been entrusted with its most prestigious work for

decades, including the upgrade of the Grand Mosque in Mecca. However, it was banned from bidding for new

work after a crane collapsed at the site last September, killing at least 109 pilgrims.

The company also suffered ¬after the government halted payments to contractors and delayed the launch of new

tenders as it assessed its position ahead of the recently announced Vision 2030 National Transformation Plan.

Many of the company’s workers had complained that they had not been paid for months, and following initial

layoffs several company buses were set on fire in Mecca this month. BHC’s spokesman blamed “delays by clients

in settling approved entitlements and payments" for delays in payments to workers.

“There are various efforts being undertaken to address this issue and we remain hopeful [these will] be resolved

soon," the spokesman said.

Many construction com¬panies working for Saudi government clients had also reported issues with delayed

payments, but the situation appears to have eased in recent weeks.

Last month, the chief executive of the Dammam-based contractor Al Khodari said the government had started to

release payments, “mainly at the end of the first quarter".







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DUBAI BUILDINGS TO BE GIVEN STAR

RATINGS


A five-star rating system for buildings will improve maintenance and safety but it must be objective, in-depth and

meet international standards to be effective, owners and experts said.

The Dubai Land Department announced this week that every building in the emirate would receive a rating based

out of five. It was praised as a move towards transparency to protect owners and renters, but the plan also

sparked a debate that a building’s current physical appearance was not the only indicator of future upkeep.

“How effective will the ratings be to help a building improve and are there enough people to manage the ratings

and inspection?" asked Andrew D’costa, chairman of an owners’ association in the Silicon Oasis area.

Among the first set of homeowners boards to handle community finances, the association installed energy saving

devices to lower utility bills and built indoor and outdoor children’s play areas. “Some buildings are more than 20

years old so a culture to protect property will give residents peace of mind. If the inspections give a fair analysis, it

will be on the right track to put pressure on people to maintain buildings."

The Land Department has described the rating as part of a revamp of how buildings are classified. About 20,000

plots of land and more than 120,000 units – including apartments, offices, retail, schools, and public amenities –

have already been surveyed to create a database of property.

Inspectors visit each building, take photos of common areas and complete an exhaustive questionnaire covering

fire safety, maintenance and sustainability.

More details on the ratings would be provided, the Land Department said.

“I think the rating system is genius because people understand the star rating from hotels and restaurants. For

this region to grow we require transparency to drive confidence. Even if you improve one building, we are in a

better situation than we were yesterday," said Allen Gantt, managing director of Star Property Inspection.

The company was part of a team that worked with the Real Estate Regulatory Agency (Rera) to standardise audits

on the condition of buildings. Rera is the regulatory arm of the Dubai Land Department.

“There will be push back, with people asking why this is needed, but I believe this is the proper path forward," Mr

Gantt said.

“We have buildings that are worth 50 times more than the most expensive vehicle in the world but are not

maintained the right way, so inspections are key.

“Going forward there must be some level of consistency in managing a high-rise."

There are concerns about how much time will be spent by inspectors on each building, their qualifications and

whether budgets for future repairs were covered in the survey.

“You cannot sample a building, quality cannot be determined on a few sample floors, a building must be

inspected from head to toe," said Shahram Safai, a partner at Afridi & Angell legal consultants, who advises on

real estate law and disputes.






“It is a forward-looking initiative but it’s very important to make sure the time devoted to each inspection is

sufficient.

“A report on the physical health misses out 50 per cent of the equation, which is the maintenance budget and

what is planned to keep a five-star building at that rating so it will not deteriorate.

“There are real concerns, based on feedback from clients, that when the inspector goes out from the Land

Department, the implementation must be up to international best practices.

“We should not have a watered-down version."


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EGYPT’S PALM HILLS AIMS TO SET UP SHOP

IN DUBAI

Saturday, 14 May, 2016

The Egyptian developer Palm Hills Development is planning to set up a base in Dubai.

The company confirmed that its board has given the green light to establish a Dubai-based company, which will

be used for “any potential future project/investment opportunity outside Egypt".

However, it declined to comment on future plans, including whether it is currently looking to acquire land for

Dubai-based schemes.

Palm Hills is one of Egypt’s biggest property developers, with a current market capitalisation of about US$620

million. It operates at the premium end of the market, according to Harshjit Oza, an analyst with Egypt’s Naeem

Brokerage.

He believes that any potential move into the UAE would be a long-term affair, as “they have their plates full with

what they are doing in Egypt".

The company currently has several major projects under way and is set to oversee two huge projects for New

Urban Communities Authority (Nuca) – an Egyptian government agency in charge of delivering new cities.

This year, it is set to launch a 2.1 million square metre project with Nuca in East Cairo and is in talks with the

authority over a deal to deliver a 4.2 million sq metres project in West Cairo.

Last week, Palm Hills revealed a 49 per cent year-on-year increase in first quarter revenue to 1.1 billion Egyptian

pounds (Dh454m). It also upgraded its revenue guidance estimate for the whole of 2016 to 7bn Egyptian pounds –

up from 5bn pounds previously.

It also said that new sales to clients in the quarter increased by 62 per cent to 2.2bn Egyptian pounds – its

strongest ever quarter for bookings.

“All of the developers in Egypt, because of the demand and the growth, are quite busy with what’s going on

[locally]," said Mr Oza.

He added that any plans to buy land or assets overseas could be hampered by ongoing shortages of foreign

currency. Despite the pound’s recent devaluation, dollars still change hands on the black market at a much higher

rate [11 pounds to the dollar] than the official rate of [8.8 pounds], making large-scale transfers difficult.

Mr Oza said that opening an office in Dubai still made sense, as it allowed Palm Hills to directly target Egyptian

expats looking to buy homes rather than dealing with third parties, and in the long term it makes sense to pursue

opportunities outside of its home market.

“They need to diversify a bit," he said.

The company had previously expanded beyond its borders before the 2011 revolution, but was later forced to

rein in its expansion plans to pay down spiralling debts. The company retains a 5 million square metres plot in

Saudi Arabia that has yet to be either developed or sold off.







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EMAAR LAUNCHES ANOTHER LUXURY

PROJECT... AT EMIRATES HILLS


Emaar Properties, Dubai’s biggest-listed developer, is continuing to launch new projects.

The latest from its stable is a luxury villa project in Dubai Hills Estate – the new avatar of its popular Emirates Hills.

The ‘Fairway Vista’ consists of 65 six and seven-bedroom villas with plot sizes ranging from 11,000 to 12,000

square feet. The total built up area is between 8,286 and 9,212 square feet.

“The company presentation given to agents reveals that Fairway Vista is likely to be delivered by June 2021,” real

estate brokers told Emirates 24|7.

According to the payment plan, investors can pay 60 per cent in three years and the remaining 40 per cent in two

years after handover. Agents have waived off their commission.

Mega development

Dubai Hills Estate within Mohammed bin Rashid City (MBR) City is jointly developed by Emaar and Meraas

Holding. It will house 26,400 residential units and will have its own rail line connecting to the emirate’s two

international airports.

The master development will have over 2.2 million square metres of green areas that includes the golf course and

a central park. It will have a mall, community retail areas, including a boutique mall for high-end brands, hospital,

hotels, schools, tennis and sports centres, and a seven-kilometre boulevard. There will also be 45-kilometre

trekking trails.

The Dubai-bourse listed company has launched a number of new projects this year, which includes The Tower in

the Dubai Creek Harbour, Sidra villa project in Dubai Hills Estates and 52/42 in Dubai Marina.

Source: Emirates 24/7

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SHAH RUKH KHAN-BACKED HOME PROJECT

TAKES OFF IN DUBAI


Work on Shah Rukh Khan-promoted Dh2.3-billion Royal Estates, an affordable housing project, in Dubai has finally

begun.

Texture Group, the current owner, has awarded the first construction contract to Armada Contracting for

townhouses in the massive development coming up in Dubai Investment Park.

“Work has started on the overall project and the contractor is on site,” Texture Group General Manager Shahid

Rasheed told Emirates 24|7.

Partnering with Texture is Pacific Ventures and PAL Developments, with the companies aiming to complete the

350 townhouses in the third quarter 2017 and over 2,500 apartments a year later.

“The market is stable and getting better. Our forecast and vision is very positive for the real estate and property

market of Dubai. We believe as we get close to 2020 there will immense development and requirement of

homes,” Rasheed said, referring to the project’s location being close to the Expo 2020 venue.

The emirate is expecting Dh25 billion in total investment in infrastructure-related projects in the run-up to Expo

2020 with nearly 277,000 new jobs being created. The Expo, which will run from October 20, 2020, to April 10,

2021, and aims to draw more than 25 million visitors.

The developer has priced studio apartments from Dh320,000, while one-bed units are being sold from Dh550,000.

Investors pay 10 per cent down payment on booking, with the balance payment being paid over 4.5 years in

equated monthly installments of Dh4,000 a month.

Launched in 2008, Royal Estates was launched by Aristocrat Star Investments, but was put on hold post the global

financial crisis. It was re-launched in August 2014.

Tony Ahai of Ashai Design Corporation, a Dubai-based architecture firm, is the master designer and architect,

while interiors for the residential units have been done by Gauri Khan, spouse of Shah Rukh Khan.

# Payment plans matter

Flexible payment plans have become one of the key differentiators used by developers to attract middle-income

households to purchase residential property in the UAE, Craig Plumb, Head of research for Mena region, JLL, a

global property consultancy, had told Emirates 24|7.

Based on the consultancy’s assumption that households allocate up to 30 per cent of their gross income on

housing, a family earning Dh20,000 a month can afford to pay around Dh6,000 a month on either renting, or

buying their unit.

“For developers to attract this sector of the market, they need to ensure that monthly payments are fixed at this

level,” he had said.

Source: Emirates 24/7

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UAE LAW: AFTER JOB ENDS, 30 DAYS TO

VACATE STAFF ACCOMMODATION


The UAE Ministry of Human Resources and Emiratisation has informed employees living in accommodation

provided by their employers to vacate it within 30 days after their service is finished.

“Labour Law states that an employee must evacuate his residence provided by his employer after ending his

service within 30 days,” according to the Ministry.

An HR executive with a top UAE company, however, told Emirates 24|7 that employees can be given grace period

in certain cases.

“One of our long-time employees is moving back to his home country and requested for an extension in company

accommodation. We did give him a 15-day grace period to allow him to complete all his formalities. Though the

Labour Law specifies the regulations, the extension to be given depends on the relationship between the

employer and employee,” the executive added.

In April 2016, Emirates 24|7 reported that housing allowance are not part of the basic wage and must be agreed

upon separately.

The UAE Labour Law does differentiate between the definitions of basic wage and total wage.

The former is an employee’s wage excluding all allowances of whatever nature and is specified in the labour

contract as such, while total wage is an employee’s wage inclusive of all allowances provided such as

accommodation and travel allowances.

“Hence, according to UAE Labour Law, allowances such as flights, housing, transportation and telephone are not

part of the basic wage and must be agreed upon separately,” Ahmed Odeh, Legal Consultant, MIO Law Firm, had

told this website.

Housing allowance can be distributed in one of the two following ways: Cash/Cheque in advance and employer

undertaking to secure housing on behalf of the employee.

Source: Arabian Business

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EXPO 2020 SPENDING TO HELP DUBAI'S

ECONOMY OUTPERFORM PEERS


Dubai will resist the economic slowdown afflicting its Gulf neighbors thanks to investments in Expo 2020,

according to the International Monetary Fund (IMF).

Government spending in Dubai will drive a “rapid acceleration” to more than 5 percent GDP growth by 2020, said

Zeine Zeidane, advisor in the Middle East and Central Asia Department at IMF.

As Abu Dhabi, the richest of the UAE’s seven emirates, has slashed spending in response to the oil-price drop, the

IMF expects the capital’s economic growth to slow to 1.5 percent in 2016 from 4.3 percent in the previous year.

The IMF expects the UAE’s economy as a whole to expand 2.3 percent this year, and Dubai’s inflation to decline to

3.2 percent this year from 4.1 percent in 2015.

Dubai’s “diversified economy” is helping overcome the negative impact of lower oil prices felt by other regional

exporters, Zeidane said.

Private sector credit growth is expected to moderate due to the slowing economy and larger fiscal financing

needs.

The Dubai authorities’ vision is to further diversify the economy away from oil, which requires stepping up

structural reforms aimed at further developing the private sector, transitioning towards a knowledge-driven

economy, and promoting export sectors.

Zeidane said improvements could be made to various areas of the local business environment, such as the

development of adequate public-private partnerships frameworks and the relaxing of restrictions to foreign

ownership.

He also highlighted the need to ease access to finance for startups and small and medium enterprises (SMEs), and

creating the right incentives for entrepreneurship and job creation, notably for women.

Source: Arabian Business

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With 30 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

Associate Director – Research and Consultancy

+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

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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

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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 20 - asteco property managementdld said that to date it has surveyed more than 20,000...

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