news brief 13 - asteco.com€¦ · dubai half of dubai homes sold so far this year were off-plan...

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RESEARCH DEPARTMENT

NEWS BRIEF 13

SUNDAY, 31 MARCH 2019

ABU DHABI | AL AIN | DUBAI SHARJAH | JORDAN | KSA

© Asteco Property Management | 2019 | asteco.com

IN THE MIDDLE EAST FOR OVER 30 YEARS



REAL ESTATE NEWS

UAE / GCC / MENA

SAUDI ARABIA SET TO GET RECORD $50BN IN NON-RESIDENT CAPITAL FLOWS IN

2019

SAUDI INDUSTRIAL STRATEGY TO BOOST REAL ESTATE DEMAND

UAE REPORTS DH67.5BN SURPLUS FOR 2018 THANKS TO HIGHER OIL PRICES

RENT-TO-OWN SCHEME: IS THIS WHAT UAE TENANTS NEED?

HOMEFRONT: 'CAN MY FORMER LANDLORD CHARGE DH16,750 FOR DAMAGE I DID

NOT CAUSE?'

DEVELOPER LAUNCHES SALES OF AJDAN RISE PROJECT IN SAUDI'S AL KHOBAR

IT’S TIME THE DIRHAM MOVED ON FROM THE DOLLAR PEG

UAE DEVELOPERS ARE TAKING MALLS JUST BEYOND SHOPPING

DUBAI

HALF OF DUBAI HOMES SOLD SO FAR THIS YEAR WERE OFF-PLAN

REVEALED: AVERAGE DUBAI PROPERTY PRICE FALLS TO $710,000

MARKET DEMAND SEES SOBHA LAUNCH SECOND TOWER AT CREEK VISTAS

DUBAI DEVELOPER SECURES $40M FINANCING FOR NEW HOTEL FIT-OUT

DUBAI DEVELOPER SAYS AL BARSHA PROJECT ON TRACK FOR DECEMBER

COMPLETION

PANTHEON SAYS $49M DUBAI PROJECT SET FOR END-2020 COMPLETION

MORE DUBAI LANDLORDS ARE TAKING TO SHORT-TERM RENTALS

DREAM OF A HOME IN THE BURJ KHALIFA? IT IS NOT THAT HARD, SAY ANALYSTS

PROPERTY BUYERS ARE BACK IN DUBAI

5 MOST AFFORDABLE AREAS TO BUY PROPERTY IN DUBAI

DEWA RAISES DH7.34B FOR FOURTH PHASE OF MBR SOLAR PARK

DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN | KSA

© Asteco Property Management, 2019 asteco.com

DEFINING LANDSCAPES SINCE 1985



REAL ESTATE NEWS

GENERATION START-UP: DUBAI PROPERTY MARKET AND TOURISTS DRIVE

VACATION RENTALS FOR MAISON PRIVEE

DIFC ACCEPTING NOMINATIONS FOR NEW LONG-TERM RESIDENCY VISAS

DUBAI ECONOMY GROWS 1.94% IN 2018 DRIVEN BY TRADE AND INFRASTRUCTURE

SPENDING

HOW DUBAI CAN SOLVE ITS AFFORDABLE HOUSING DILEMMA

DUBAI'S FIRST DORCHESTER BRANDED HOTEL SET FOR 2020 COMPLETION

DUBAI OPENS PHASE 1 OF DUBAI HISTORICAL DISTRICT

63% OF TRAVELLERS PASSING THROUGH DUBAI AIRPORT ARE IN TRANSIT, SAYS

NEW REPORT RELEASED AHEAD OF ARABIAN TRAVEL MARKET

DLD INKS DEALS TO BOOST REALTY

RTA OPENS PHASE 2 OF KEY DUBAI ROAD TO EASE TRAFFIC

DUBAI PRIVATE SCHOOLS CAN NO LONGER EASILY RAISE FEES

ABU DHABI

ABU DHABI LAUNCHES DH535M HUB71 FOR TECH STARTUPS

HOW THE UAE'S $1.2BN REEM MALL AIMS TO REVOLUTIONISE SHOPPING

GULF CAPITAL JV IN TALKS TO SELL ABU DHABI'S GALLERIA MALL TO MUBADALA

NORTHERN EMIRATES

SHARJAH TO BUILD DH2BN SOLAR-POWERED SUSTAINABLE CITY

INTERNATIONAL

GULF INVESTORS TARGETED FOR UK LUXURY REAL ESTATE PROJECT

SAUDI'S SIDRA BUYS STUDENT HOUSING PROPERTIES IN THE US

UAE-OWNED ICONIC LONDON HOTEL SET TO OPEN LATER IN 2019






REAL ESTATE NEWS

HERE'S HOW YOU CAN OWN A VILLA FOR JUST DH240

INDIAN DEVELOPERS SEE LUXURY REAL ESTATE DEMAND RISING

UAE-BASED RETAIL GIANT LULU GROUP CONFIRMS NEW MALLS IN BENGALURU,

CHENNAI






HALF OF DUBAI HOMES SOLD SO FAR THIS

YEAR WERE OFF-PLAN Tuesday, March 26, 2019

More than half of residential real estate sales in Dubai this year were off-plan rather than completed homes.

A total of 3,069 off-plan homes exchanged hands in the first two months of 2019, representing 55 per cent of all

Dubai residential sales in the same period, according to the UAE real estate portal Property Finder.

So-called "secondary market" sales of completed homes accounted for the remaining 45 per cent – a total of

2,463 transactions – with prices typically more attractive and affordable for this type of real estate.

“This is a far cry from the earlier cycles of the Dubai property market [up to five or 10 years ago], when off-plan

sales dominated and secondary home transactions trailed by a huge margin,” Property Finder said. “This suggests

that Dubai is no longer a purely investor-driven market.”

However, the figures show a 7.8 per cent year-on-year decline in the total volume of off-plan sales compared to

the first two months of 2018, according to the research. By comparison, the volume of secondary market

transactions in January and February this year fell only by a marginal 1.4 per cent year-on-year.

More robust activity in the secondary market implies that end users are still active and purchasing homes in

Dubai, with developers devising appealing, low-cost payment plans to attract buyers and clear remaining stock in

their inventories, Property Finder said.

The UAE property market has faced challenges in the past four years since oil prices plummeted for three years

from 2014, having a negative impact on real estate values and forcing developers and landlords to be more

competitive with their prices.

“In 2018, we saw more of a balance between secondary and off-plan sales transactions and that trend appears to

be continuing into 2019,” said Lynnette Abad, director of research and data at Property Finder.

“[This year], sellers have been much more motivated, one reason being the competition they face with off-plan,

ready stock.”

For apartment sales, Palm Jumeirah, Dubai Marina and International City accounted for the most secondary

market transactions in the first two months of this year, while Dubai Hills Estate, Downtown Dubai and Dubai

Creek Harbour accounted for the most off-plan deals, according to Property Finder’s research.

For villas and townhouses, Dubai South, Arabian Ranches 2 and Dubai Hills Estate contributed to the bulk of off-

plan transactions, while Arabian Ranches, The Springs and Al Furjan accounted for the most secondary market

deals.

Source: The National

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SAUDI ARABIA SET TO GET RECORD $50BN

IN NON-RESIDENT CAPITAL FLOWS IN 2019 Tuesday, March 26, 2019

Saudi Arabia, the biggest Arab economy, is expected to see a 35 per cent rise in non-resident capital inflows into

the country this year, as economic momentum gathers pace and international portfolio managers flock to invest

in the kingdom’s equities market.

A record $50 billion (Dh183.5bn) of non-resident capital inflows are predicted to come to the country on the back

of a projected sharp increase in portfolio investments, the International Institute of Finance (IIF) said on Tuesday.

The kingdom is among the top countries in terms of inflows within the Middle East, North Africa and Pakistan

(Menap) region this year. Menap as a whole is expected to receive total non-resident inflows of $217bn this year,

a marginal year-on-year rise, which equates to about 7 per cent of the region’s combined gross domestic product,

said the IIF, a global association or trade group of financial institutions.

Within Saudi Arabia, Opec’s top oil producer, resident capital outflows will continue to exceed non-resident

inflows in 2019 despite the modest narrowing of the current account surplus due to lower oil prices.

“Equity inflows are expected to make a significant contribution to portfolio flows,” the IIF said in the report. Garbis

Iradian, chief economist at the IIF, said: “We see modest pick-up in non-oil real GDP growth to 3.3 per cent in 2019,

supported by continued fiscal stimulus and gradual recovery in private sector growth.”

Saudi Arabia’s stock market the Tadawul, the biggest Arab bourse, was admitted into the FTSE emerging market

gauge earlier this month in a five-phase inclusion process. Stocks in the kingdom will also be added to the MSCI

Emerging Market Index in May, as the eighth-largest constituent of the measure, accounting for 2.6 per cent of its

weight.

“These inclusions should boost confidence among investors and attract higher equity inflows, which we

conservatively project to be $12bn,” Mr Iradian noted. “But prepositioning by investors has been relatively slow

due to concerns about policy uncertainty [and] high valuations for Saudi-listed firms.”

Non-resident inflows of capital are also expected to remain strong in the UAE while they are expected to decline

in Egypt, the most populous Arab nation, due to lower refinancing needs, the IIF said.

“We expect growth to remain around 3 per cent in 2019 and 2020 [in the UAE]. Public sector activity may pick up,

supported by the $13.6bn stimulus package introduced in June 2018 for a period of three years,” Mr Iradian said.

“The UAE’s external position remains in an enviable position. With lower oil exports, we expect the current

account surplus to narrow to a still-sizeable $23bn in 2019, equivalent to 6 per cent of GDP.”

With public foreign assets continuing to increase to 200 per cent of the GDP by 2020, the UAE will remain the

main regional destination of FDI inflows at $10.4bn in 2018, accounting for 20 per cent of the Menap total, the IIF

said.


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SAUDI INDUSTRIAL STRATEGY TO BOOST

REAL ESTATE DEMAND Monday, March 25, 2019

Saudi Arabia’s 100 billion riyals (Dh97.93bn) plan to grow its logistics, mining and energy sectors will spur demand

for industrial real estate in the kingdom, especially through the proposed development of special logistics zones

to attract businesses.

The country has several projects in the pipeline that are expected to increase the number of high-quality

industrial stocks for investors and end users, according to CBRE’s Saudi Arabia Industrial & Logistics white paper,

published on Monday.

These include Tharwat Logistics City north of Riyadh; the 5 million square metre Asfan Smart Industrial City 2 in

Jeddah; Riyadh Integrated Logistics Bonded Zone near King Khalid International Airport, and King Salman Energy

Park, which is intended to support the kingdom’s ambitions to become a global energy hub, the report noted.

“Saudi Arabia has a number of attributes that will enable the country to emerge as a logistics hub of global

significance,” said Simon Townsend, general manager for KSA, and head of strategic advisory for CBRE.

“The kingdom benefits from a central location that allows for optimal distribution to the GCC, wider Middle East

region and North and East Africa – as well as residing on the Asia-to-Europe trade route. The sector provides

various opportunities for foreign investors who are eager to enter the Saudi market.”

In January, Saudi Arabia unveiled its National Industrial Development and Logistics Programme (NIDLP) – a

sizeable strategy to spend 100bn riyals in 2019 and 2020 to help wean the country off oil revenues.

The programme is intended to create 1.6 million jobs and attract up to 1.6 trillion riyals of inward investment by

2030, through 42 initiatives aimed at stimulating local activity in sectors including mining, logistics and energy. It is

part of the government's wider Vision 2030 economic diversification agenda.

CBRE’s report said numerous government initiatives set to be unveiled as part of the NIDLP – including the

creation of logistics zones with investment opportunities worth 7bn riyals, according to the government – would

“positively impact demand for industrial and logistics real estate across the kingdom in the short and medium

term”.

At the same time, the growth of regional e-commerce will fuel the need for alternative industrial products, while

emerging technologies such as self-driving vehicles, robotics, automation and artificial intelligence will further

shape occupiers’ space requirements.

Riyadh has close to 70 million sq metres of gross floor area in key industrial areas such as Riyadh Industrial City 2,

As Sulay Industrial Area and Al Mishal Industrial Area, according to CBRE’s report. Jeddah and Damman have 65

million sq metres and 28 million sq metres of space, respectively.


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UAE REPORTS DH67.5BN SURPLUS FOR

2018 THANKS TO HIGHER OIL PRICES Monday, March 25, 2019

The UAE, the second-largest Arabian Gulf economy, reported a surplus of Dh67.5 billion last year as a rise in crude

prices in the second half of 2018 boosted government revenues.

The consolidated revenues of the federal government rose to Dh455.5bn while its expenses climbed to

Dh388.15bn at the end of last year, the state-run news agency Wam reported, citing UAE Ministry of Finance data.

The comparative figures from a year earlier were not given.

The government’s revenues during the first nine months of 2018 rose to Dh304.5bn, a 4.8 per cent year-on-year

increase. The expenses also climbed to Dh276.2bn from Dh259.3bn from the corresponding period in 2017.

The ministry attributed the rise in consolidated revenues to the oil rally in 2018, along with consistent financial

reforms.

The UAE economy grew 4.4 per cent in the last quarter of 2018, the fastest-growing quarter of last year, thanks to

a rise in crude oil production before the implementation of Opec cuts, which started in January. Overall growth in

2018 was 2.8 per cent, up from 0.8 per cent in 2017.

The economy is forecast to grow 3.5 per cent this year on the back of a slew of government measures aimed at

boosting economic growth and cutting its dependence on oil revenues, the Central Bank of the UAE said earlier

this month. The growth projection for this year is almost in line with that of the International Monetary Fund,

which forecasts 3.7 per cent expansion during 2019-20.

Like the rest of its GCC peers, the UAE relies on the sale of hydrocarbons for revenues and the three-year oil price

slump which began in the middle of 2014 prompted the government to develop alternative streams of income,

boosting the contribution of the non-oil economy to GDP.

"Is the UAE economy sensitive to oil income? [Yes] oil is one of the factors that drive the UAE economy," Mazen

Alsudairi, head of research at Al Rajhi Capital in Riyadh, said. "Irrespective of this, the UAE is working towards its

future strategy based on UAE Vision 2021 and they are sticking to their [expansionary] targets, which is expected

to be positive for the economy."

Brent crude prices rose to breach the $85 per barrel level last October, after falling to lows of below $30 per

barrel in the first quarter of 2016. The benchmark, against which more than half of the world's crude oil is priced,

is currently hovering around the mid-$60s level.

The reforms and measures that the government at the federal and emirate levels has adopted include the

implementation of VAT at the beginning of last year and the reduction of the cost of doing business. These also

include the waiving of corporate fines in Dubai and Abu Dhabi, allowing foreign ownership of companies in

selected sectors outside free zones, and Abu Dhabi's Dh50bn three-year economic stimulus package revealed last

year.

"The UAE’s consolidated fiscal position in 2018 would have benefited from the higher oil revenue and the

introduction of VAT," said Monica Malik, the head of research at Abu Dhabi Commercial Bank.

The government has also shifted its focus to supporting economic activity, including reducing government fees in

a number of areas and raising government spending.






"The UAE is in a position to support these growth measures, especially given the progress with its fiscal reform

programme," Ms Malik added.


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GULF INVESTORS TARGETED FOR UK

LUXURY REAL ESTATE PROJECT Monday, March 25, 2019

Birmingham, England's second city and its industrial heart, is fast becoming a popular property investment

opportunity for Gulf-based investors, according to Chestertons.

Chestertons MENA said it will be targeting Middle East-based investors with the launch of a new development in

one of Birmingham’s most sought-after locations at this year’s International Property Show, which opens at the

Dubai World Trade Centre on Tuesday.

Snow Hill Wharf, developed by the Berkeley Group’s newest brand, St Joseph, comprises a total of 406 luxury

apartments with 34 one-bedroom and 99 two-bedroom units available during this second sales phase.

Birmingham is one of the best-connected cities in the UK, thanks to AED14 billion of investment in transport

infrastructure which includes the forthcoming high-speed railway network, HS2, which will cut journey times to

London to just 49 minutes when completed in 2026.

Further infrastructure redevelopment has taken place at Birmingham’s New Street Station, the Metro network

expansion and the upgrade and expansion of Birmingham Airport.

Nick Witty, managing director, Chestertons MENA, said: “Birmingham is fast becoming a popular property

investment opportunity for Middle East investors looking to diversify their UK-based property portfolio.

"Our most recent research has highlighted yields of 6 percent being achieved for one-bedroom units and 8.9

percent for two-bedroom units which is considerably higher than in London and several other large cities in the

UK.

“Strong yield prospects and capital growth has seen property prices in the city increase by 45 percent in the last

decade, with further growth of 15.9 percent predicted over the next five years, an enticing proposition for many

investors,” added Witty.

Chestertons MENA said it will apply its wealth of experience in the MENA region to target UAE and Middle Eastern

investors to showcase the second phase of the newly launched development.

Prices start from AED1 million and include a mix of one, two and three-bedroom apartments. The development

comprises five buildings within Phase Two including, the Fazeley and Colmore apartments slated for handover in

the third quarter of 2021 and the first quarter of 2022, respectively.

Source: Arabian Business

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REVEALED: AVERAGE DUBAI PROPERTY

PRICE FALLS TO $710,000 Monday, March 25, 2019

The average house price in Dubai decreased to AED2.6 million ($710,000) in February, as values continue to fall

since the start of 2019, according to new research.

Property Monitor, the real estate intelligence platform from Cavendish Maxwell, indicated that the average annual

house price in Dubai decreased by 10.6 percent in February, with some communities registering even higher price

declines.

Discovery Gardens, Jumeirah Islands, Arabian Ranches, Emirates Living and Dubai Sports City were some of the

communities that registered price declines of more than 11 percent on average, the report showed.

Month-on-month, the price decline for February is 1.8 percent, 0.1 percent higher than in January.

The report showed that house prices in the three months up to February were 4.5 percent lower than in the

previous quarter.

The rate of off-plan apartment transfers remained high in February, as has been the case over the past year.

However, the total volume of off-plan apartment transfers decreased by nearly 24 percent over the first two

months of 2019, compared to the same period in 2018, it added. It also said that the volume of villa/townhouse

transfers nearly doubled over the same period.

According to February figures, the average apartment price remained relatively stable at AED1.8 million, with only

a marginal change from January, while the average villa/townhouse price decreased to AED4.6 million.

The figures come ahead of Dubai Land Department's Dubai Property Festival which kicks off on Tuesday at the

Dubai World Trade Centre to attract more property investment to the emirate and the wider UAE.

The event, run through its Real Estate Investment Management and Promotion sector and in partnership with the

International Property Show (IPS), is expected to attract more than 20,000 visitors.

Last month, a report by S&P Global Ratings said property price declines in Dubai are set to continue this year as

values have already dropped close to levels last seen during a crash a decade ago.

A supply glut has built up even as demand faltered, feeding what S&P is calling the market’s “long decline” that’s

seen prices and rents drop by as much as a third since peaking in 2014.


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SAUDI'S SIDRA BUYS STUDENT HOUSING

PROPERTIES IN THE US Monday, March 25, 2019

Sidra Capital, the Saudi-based Shari’ah-compliant financial services company, has added seven US-based student

housing properties to its global real estate portfolio.

The properties serve the University of Alabama in Tuscaloosa, Alabama; Florida Atlantic University in Boca Raton,

Florida; Ferris State University in Big Rapids, Michigan; University at Buffalo in Amherst, New York; Penn State

University in State College, Pennsylvania; and Texas State University in San Marcos, Texas.

In total Sidra said it has acquired 2,058 beds across the six states, without giving a value for the deal.

Hani Baothman, vice chairman of Sidra Capital, said: “These seven properties consist of a diverse mix of value add

and stable income student accommodation, delivering attractive risk adjusted returns.

“We remain cautious on the global outlook for real estate after years of steady growth and low interest rates and

see our capital moving towards defensive sectors which exhibit stable income with an element of value add. We

are still seeing attractive opportunities in certain locations of the US but remain highly selective."

Sidra Capital said its US investments comprise of 21 assets and forms a share of the company’s international real

estate activities, which include acquisitions in the UK, Europe and Australasia.


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MARKET DEMAND SEES SOBHA LAUNCH

SECOND TOWER AT CREEK VISTAS Monday, March 25, 2019

Sobha Realty has launched the second building of its twin-tower residential development Creek Vistas at Sobha

Hartland in Mohammed Bin Rashid Al Maktoum City.

The developer said the move is in response to market demand after project’s first tower sold out shortly after its

launch.

Creek Vistas is part of the Sobha Hartland community - an eight million sq ft development of luxury apartments,

villas and townhouses.

The newly launched Creek Vistas Tower B will consist of 390 units comprising one- and two-bedroom apartments

ranging from 493 to 899 sq ft. Following an east-west orientation of the tower, the 28-floor towers will rest on a

two-level podium.

Each unit will include a balcony, a fully equipped kitchen, central air conditioning, smart home automation, and

premium fixtures and finishes. Select apartments will also include a study.

The residential twin towers are set for completion in Q3 2021.

Apartments at Tower B are available from AED820,000, with a 5% deposit on booking, followed by five percent

payments every three months until September 2021 and pay the remainder upon completion.

Sobha is the second developer in recent weeks to buck the current trend of a softening Dubai property market.

Emaar announced last week that its revenue from villa sales jumped 90% last year to $2.13 billion, the biggest

increase across its property segments.

Dubai home prices and rents have dropped by as much as a third since peaking in 2014.


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DUBAI DEVELOPER SECURES $40M

FINANCING FOR NEW HOTEL FIT-OUT Monday, March 25, 2019

Ultra-luxury developer Omniyat has announced that it has secured a financing of AED150 million ($40.8 million)

from Mashreq Bank for the fit-out of a hotel in The Opus by Zaha Hadid in Downtown Dubai.

The facility will be used for completing the fit-out ofthe landmark hotel to be operated by the lifestyle hotel brand

ME by Meliá.

Located in Business Bay, the buildings are made up of two glass towers connected by a ground-floor podium and

a glass and steel bridge, and includes over 56,000 square metres of office space, a club, several restaurants and

the hotel.

Mahdi Amjad, chairman and CEO at Omniyat, said: "Bringing Zaha Hadid’s ground breaking vision of the future to

life has been a momentous journey and we wish to continue herlegacy through The Opus.

"As the final and most anticipated component of The Opus, we are thrilled to be revealing ME Dubai’s Debut by

the end of the year look forward to guests experiencing the full capacity of the architectural wonder as it captures

design aspirations from every corner."

Enrique Ortiz, EMEA region VP at Meliá Hotels International, added: “Designed by late architect Zaha Hadid, ME

Dubai will be a true legacy project when the property launches. We are honoured to work in partnership with her

team and Omniyat and we are very much looking forward to ME by Meliá’s first debut in the Middle East offering

guests an unparalleled experience combined with exemplary design.”

Ahmed Abdelaal, head of Corporate & Investment Banking Group at Mashreq, added: “As the UAE’s oldest bank

Mashreq has played a pivotal role in helping shape the skyline of Dubai and we are delighted to be associated

with a building whose unique design challenges established convention."

Established in 2005, Omniyat said it has a development portfolio of over AED16 billion.


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UAE-OWNED ICONIC LONDON HOTEL SET

TO OPEN LATER IN 2019 Monday, March 25, 2019

Developer Galliard Group has announced the completion of the new Great Scotland Yard Hotel, once the location

of the original Scotland Yard Metropolitan Police HQ, to be owned by UAE-based Lulu Group International and

operated by Hyatt.

In 2013, Galliard Group acquired a 125 year Crown Estate lease on the building which was exchanged for a

forward sale of the hotel when completed to Abu Dhabi-based LuLu Group International in 2016 for £110 million.

Galliard's construction division said it has now completed the construction project to deliver the new hotel.

Set to launch later in 2019, the new seven-storey hotel provides 153 bedrooms and suites including a townhouse

suite created from part of the original Scotland Yard Police premises.

Hotel features include interior design references to the building's police and military past through the use of

shields, emblems and historic details etched into glass and metalwork.

The hotel has a double height vestibule, grand entrance lounge, concierge, main cocktail bar, palm court style

lounge, whiskey bar/clubroom, signature restaurant, library, gymnasium, 120 seater main conference

room/ballroom, meeting rooms and function/private dining rooms.

On the lower ground floor, the cells, where legend has it Rudolf Hess was interrogated in 1941, have been

replaced by a gymnasium with changing rooms, meeting/conference rooms, conference space, ballroom and a

series of VIP function rooms.

Stephen Conway, executive chairman of Galliard Group said: "With its iconic address and famous history, the

hotel's interior design cleverly references the building's police and military past through the use of shields,

emblems and historic details etched into glass and metalwork."


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DUBAI DEVELOPER SAYS AL BARSHA

PROJECT ON TRACK FOR DECEMBER

COMPLETION Monday, March 25, 2019

Dubai Investments has announced that the new residential tower at Al Barsha 1, developed by its subsidiary

Dubai Investments Real Estate Company (DIRC), is on track to be completed in December.

The company said the project is now 25 percent complete, with excavation and substructure work finished.

The development will offer 399,453 square feetof residential and commercial area, with a mix of 278 units - 132

studio, 122 one beds and 24 two bed apartments over 14 levels and a ground floor.

The building also includes 22,988.48 square feet of commercial area for seven retail outlets, along with a gym,

recreational facilities, play area and four levels of covered parking for over 300 vehicles.

The development is located within walking distance of Mall of the Emirates, adjacent to First Al Khail Street at Al

Barsha First.

Obaid Mohammed AlSalami, general manager of DIRC, said: “The Al Barsha 1 project will provide a fresh mixed

use between residential and commercial offerings and excellent facilities at a strategic location that benefits the

residents and the city.”

DIRC has appointed Fujairah National Construction as main contractor for all construction work on the project.

As well as Al Barsha 1, DIRC is also developing Mirdif Hills, a mixed-use residential, commercial and retail

development spread across 3.9 million square feet, and Ritaj, a residential community over 2.5 million square feet

and 11 residential blocks which is located in the heart of Dubai Investments Park.


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PANTHEON SAYS $49M DUBAI PROJECT SET

FOR END-2020 COMPLETION Saturday, March 23, 2019

Pantheon Development, the UAE-based developer, has announced that the mobilisation work for its project

Pantheon Elysee is completed.

Signalling a major milestone, the company said that the structural work for the upcoming project was 12 percent

complete while work related to mechanical, electrical and plumbing (MEP) stood at 3 percent completion.

Pantheon Elysee is the second project in Jumeirah Village Circle (JVC) for the Pantheon Group, following the

successful launch of Pantheon Boulevard at District 13 in JVC.

Pantheon Elysee is an affordable luxury development, and the $49 million project consists of 268 residential units

and retail outlets.

Kalpesh Kinariwala, founder and chairman of Pantheon Group, said: “We are pleased that the work for Pantheon

Elysee is well on track. As an organisation, delivering on time has been our distinguishing factor, which has led

customers to trust in us. Given the way the project is shaping up, we are confident that the tenants will be able to

move to their residential and retail units by end of 2020.”

Kinariwala added that the UAE’s construction and real estate sector were experiencing a dramatic shift, with

affordable luxury forming the next level of demand.

CJTech Contractors have been appointed as the contractor on the project, while Al Khawajah Engineering

Cosultants is serving as the project consultant.

Pantheon Development has offices in Latin America, Far East and India with an annual turnover of more than

$325 million.


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RENT-TO-OWN SCHEME: IS THIS WHAT UAE

TENANTS NEED? Tuesday, March 26, 2019

As inventories across the property market rise, developers continue to look for ways to accelerate the offtake

through various innovative schemes. The rent-to-own (RTO) model is one avenue that many developers are

seriously considering and which is gaining some traction in certain segments.

“We have already witnessed several developers offering RTO schemes and I would anticipate that this trend will

become more popular with developers while the market is in a softened state,” says Sean McCauley, CEO of

DevMark, adding that RTO schemes give developers access to a wider buyer pool, which they would not normally

achieve through their conventional offerings.

What is it?

Rent-to-own is a conditional agreement for a property comprising a rental and a future sale agreement, at a

predetermined price and a defined time frame, explains Richard Paul, head of professional services and

consultancy Middle East at Savills Dubai. “In most cases, as part of the agreement, a certain percentage of the rent

is apportioned towards the down payment of the property. After the predefined time frame, the buyer has the

option to either buy the property or exit the agreement,” he says.

RTO schemes were first introduced in Dubai in the early 2000s and they became most popular in 2010-11.

“Currently, only a handful of developers offer RTO schemes in Dubai, however, there are schemes being

advertised in areas such as Dubailand, Motor City and Jumeirah Village Circle for periods of up to 20 years,” says

McCauley.

Although still in its early stages in terms of reach and volume, the scheme has begun to re-emerge as a viable

option for both buyers and sellers after the Dubai Land Department (DLD) launched the rent-to-own (Ijarah)

service last year, allowing such deeds to be registered.

“The processes laid out by the Land Department will hopefully provide a clear legal structure to address many of

the legal issues raised by RTO,” says John Stevens, managing director of Asteco Property Management.

RTO schemes usually have no down-payment

With supply steadily increasing in Dubai, Paul says it’s important for developers to come up with innovative

schemes to remain competitive. “Along with the various extended payment plans currently being offered, RTO

schemes allow developers to tap into a new buyer segment beyond the traditional investor base and reach out to

potential end users in the market.”

McCauley notes that the average down payment for a UAE property is 30 per cent.

This comprises a 25 per cent deposit, a 4 per cent DLD registration fee and 1 per cent commission. The 25 per

cent deposit is a requirement as per the UAE Central Bank, which means that the highest loan-to-value (LTV)

percentage that an expat can get from a bank is 75 per cent.

“Many buyers may earn sufficient income to cover the mortgage repayments of the 75 per cent loan, but they

may not necessarily have the 30 per cent cash saved up for the deposit and other fees,” says McCauley, adding

that typical RTO schemes do not require a 30 per cent down payment.






With rental expenses accounting for a significant chunk of the cost of living, Farhad Azizi, CEO of Azizi

Developments, says RTO is an ideal fit for long-term residents and investors in Dubai.

“The current market conditions are conducive to drive rent-to-own initiatives as these offer customers various

options to buy a house in a financially feasible manner through affordable and convenient financial plans,” he

says.

Will it make tenants homeowners?

The terms and conditions of the RTO agreement, however, will have to be looked into closely. McCauley says,

“Conceptually yes, tenants would become homeowners upon expiration of the RTO contract, provided they have

fulfilled all of their obligations under the agreement.”

And while RTO would essentially benefit a wide range of people, “the best candidates would be aspiring

homeowners who earn good salaries but don’t have the adequate savings and cash reserves”, he adds.

Azizi says it’s a win-win for both parties involved since developers get to sell their current ready-to-move-in stock,

while end users can afford to buy where they couldn’t before due to a lack of funds for down payment.

However, a possible barrier to many buyers would be the high premiums of RTO units available in Dubai, which

according to Mahmoud Alburai, vice-president of the International Real Estate Federation of Arab Countries and a

senior advisor with the Government of Dubai, can reach up to 40 per cent.

“Normally in other places we have a rent plus a 5-10 per cent premium,” says Alburai. “But in Dubai the premium

is almost 40 per cent. To attract local demand, that premium needs to be brought down.”

What happens if a tenant defaults?

Liabilities at the end of the RTO agreement will depend upon the terms of the engagement. Paul says, “In some

cases, the seller will have to reach out to other potential buyers if the option to purchase is not exercised.”

Stevens points out that the legal and regulatory structure surrounding RTO schemes needs to be created and

released, “to protect the rights of the purchaser [tenant] and seller [developer]”.

He says purchasers need to be certain that the premium that they are paying is being held, probably in an escrow

account, and being used for the intended purpose with their interests in the property as the “owner”, subject to

conditions, no matter what the status of the developer may be in the future.

“Similarly, the developer needs to know that should the prospective purchasers default on their payments, they

have the ability and right to take possession of the unit,” explains Stevens.

While the DLD has issued necessary guidelines and associated fees related to the registration, cancellation,

financing and transfer of RTO contracts, the schemes that have been available to date have been developed

individually.

Source: Gulf News

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MORE DUBAI LANDLORDS ARE TAKING TO

SHORT-TERM RENTALS Tuesday, March 26, 2019

Buy and sell aren’t the only themes dominating Dubai’s property market. Investors and landlords are now giving

as much thought to the rental factor.

To rent short-term — a day, a week or more – or to stick with those typical one-year leases.

With a flood of new homes to be delivered this year – anywhere between 25,000 to 30,000 units – landlords don’t

have much time to decide which option to choose.

Because the landlord next door might have already put up his unit in the rental market.

The last thing any landlord wants to see these days is an unoccupied apartment or villa belonging to him.

Landlords are also hearing compelling reasons why they should opt for one at the expense of the other. Rami

Shamaa, Co-founder and Managing Director at Maison Privee, is sure which direction they should be taking.

“More homeowners are realising that operating their unit short-term can not only give much higher yield, but also

offer them flexibility as they are not tied into a long-term rental commitment,” said Shamaa. “We typically

generate a 20-40 per cent higher yield for owners with short-term rentals over traditional long-term.”

A typical daily lease for a mid to high-end residence could be anywhere from Dh750 to Dh10,000. Sure, there are

properties further down the value chain that offer lower lease rates... but those are typically listed directly by the

landlords.

Maison Privee operates exclusively in premium short-term rentals - and it isn’t the only one. More estate agents in

Dubai are now actively chasing opportunities in short-term leases – it makes sense because they get to net

commissions each time they lease it out rather than be content with one-time fees they generate through a one-

year lease.

“We would refer to it as a win-win-win scenario,” said Shamaa. “The homeowner wins as they generate more

revenue from their asset; we win as we continue to grow and scale; and the guest wins as they get access to a

product that is otherwise unavailable on the market. We operate on a flexible revenue share model with owners

whereby they can reclaim their unit with three months’ notice without penalty.

“The lower end of the market is quite saturated from individual-owners doing it themselves and smaller holiday

home operators. And this sector is not of interest to us.”

But not all landlords and estate agents are convinced that short-term is where the future lies for Dubai’s rental

market. “The returns on a daily rate are higher - but what level of occupancy is required to achieve a similar

income to a long-term rental,” queried a top official at one of Dubai’s leading property services firm.

One bedCurrently, a one-bedroom unit at Downtown now rents for between Dh60,000-Dh95,000 on a yearly

basis.

Can going short-term generate income for landlords over and above that?

Also, there are the costs involved.






“How much do you now need to pay for a hotel room that comes with all the services — since hotel rates are also

under pressure,” the official added. “My calculations indicate that you need to achieve occupancy in the mid to

high 70 per cent levels through the year to attain higher returns on short-term rentals. The question remains how

achievable is that.

“The final — and most crucial — point is the marketing cost. Relying only on local agents to achieve high

occupancy would be risky - this means a landlord would need to engage services provided by AirBnB and

Booking.com, whom I understand charge 3 per cent and 15 per cent, respectively, on guests found through

them.”

According to Shamaa, as long as Dubai keeps pulling in more travellers, prospects for short-term rentals is on a

solid ground. “The driving force behind all of this is the incredible demand for vacation rentals in the city,” he

added. “We are still not able to cater for the demand.

“The softened rental market is facilitating this rapid growth and has certainly made it easier to acquire new

properties as the yield is so much greater for owners. But the growing demand for short-term rentals from guests

to the city is what’s driving the industry.”

Other factors could also come into play. As of now, only Dubai allows landlords to put up properties on short

leases. They need to take a specific trade license.

If one or two of the other emirates were to follow Dubai’s lead, it could open up new opportunities.

But for now, landlords and estate agents will be content going all out in Dubai with the short-term.

Broker commissions are not only about percentages

One Dubai broker has had enough of rental commissions, which currently averages 2 per cent. Instead it charges

a flat Dh999, whatever be the scale of the transaction.

“The fee applies to all transactions irrespective of the rental amount of any property,” said Zeeshan Imran, CEO of

Right Doors Real Estate. “We rented out 24 units from Binghatti Developers to a corporate client from the hotel

industry and saved the tenant Dh192,024 in commissions. We only charged Dh23,976 based on the Dh999 model.

“We do 70 plus monthly transactions on average - every industry needs to adapt to trends to keep up with client

demands.”

Source: Gulf News

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DREAM OF A HOME IN THE BURJ KHALIFA?

IT IS NOT THAT HARD, SAY ANALYSTS Sunday, March 24, 2019

Owning a dream home in the iconic Burj Khalifa is much more accessible to more people now.

According to Knight Frank, the average price per square foot in the Burj Khalifa was Dh2,301 ($626), a great entry

point for investors around the world looking to invest in luxury property.

The Burj Khalifa is not just any skyscraper, it is pushing the boundaries of architecture representing pioneering

innovation and illustrates the pride of Dubai.

“Since 2014, prices have softened across the market, as a result Dubai compared to other global cities, offers

relative affordability,” said Taimur Khan, Knight Frank’s head of research in the Middle East. “For global investors

looking to broaden their property portfolio, Dubai is certainly becoming a consideration given this relative

affordability, quality of product and Dubai’s status as a global business hub with great lifestyle and infrastructure.”

Khan said that the Burj Khalifa with its iconic status and price levels make it very attractive for investors who are

looking to own a trophy asset in Dubai.

Andrew Cummings, co-founder and managing director of Luxuryproperty.com, said, “As one of the most

prestigious addresses in the world, the Burj [Khalifa] now offers tremendous value for the luxury buyer, with

average prices at Dh2,300 today. This provides an excellent opportunity for the savvy global investor.” By

comparison, a high-end condo in Manhattan costs a little over Dh6,500 per square foot, Cummings pointed out,

while Hong Kong’s real estate commands a whopping average of Dh7,582 per square foot.

“There is no better time to move into Dubai’s most iconic tower, enjoying a prime location for an enviable price

tag,” he adds.

Between Dh2,155 and Dh3,200

According to the valuation-based ValuStrat Price Index, the Burj Khalifa’s price points in February were between

Dh2,155 and Dh3,200 per square foot. The net yields ranged from 3.6 per cent to 5.2 per cent, said Haider

Tuaima, head of real estate research at ValuStrat.

“You wouldn’t get this kind of price levels for such a prime building anywhere in the world,” said Rajiv Ghanekar,

senior real estate agent at Keller Williams. “Prices start from this point, but then of course it changes as it depends

on the floor level, the view and layout.”

The gap between the standard residential properties in Downtown Dubai and Burj Khalifa is also narrower, with

the Burj Khalifa today trading at just around 15-20 per cent premium, Ghanekar said.

“Surprisingly, the Burj Kalifa is not the most expensive property in Downtown Dubai and is surpassed by serviced

apartments in The Address Hotels and some residential projects, which offer full views of Burj and Dubai

Fountain, such as Old Town Island, The Residences and the ones currently under construction, namely the IL

Primo and Opera Grand,” Ghanekar added.

A recent Knight Frank Wealth Report said that $1 million (Dh3.67 million) would now get you a 1,430-sq-ft home in

Dubai. The same amount will only fetch 160 square feet of residential property in Monaco, the priciest residential

market in the world, all of 220 square feet in some Hong Kong skyscraper and 310 square feet in New York. In






Dubai, buyers will find they can get a few more square feet for their buck than what they would have got if they

had bought in mid-2014, when prices were at their peak.

Source: Gulf News

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PROPERTY BUYERS ARE BACK IN DUBAI Tuesday, March 26, 2019

Dubai's property market is witnessing signs of green shoots as the number of transactions increased in the first

two month of 2019 while developers also report good numbers as lower prices attract new buyers despite

oversupply in the market.

"In the first two months of 2019, there is increase in number of transactions. There are more buyers in the

market. The government's initiatives like 100 per cent foreign ownership and 10-year visa are the privilege that

the investors are looking for. We are targeting new markets like Africa, the US and Canada to enhance foreign

investments into Dubai," said Majida Ali Rashid, assistant director-general of Dubai Land Department (DLD).

"Dubai's property, real estate infrastructure as well as investors are pretty matured now," she said on the

sidelines of the first day of the 3-day International Property Show, which began at the Dubai International and

Exhibition Centre on Tuesday.

In the first 11 months of 2018, the total value of transactions reached Dh194 billion while Investors pumped in

Dh62 billion investments during January to November 2018.

Farhad Azizi, CEO, Azizi Developments, also echoed Majida's views, saying there is an uptick since December 2018

and the first quarter of 2019 have been better than the same quarter last year.

"The first quarter of 2019 is much better than 2018; things had started to improve from December 2018, not just

for us, but for other developers as well. Momentum is picking up and there is a lot of excitement ahead of Expo

2020 Dubai. I believe it is good time to buy because prices are low," he said.

"The good thing is that new demand is coming from new buyers. Majority of them are end-user and non-residents

from China, GCC, Africa, India and Pakistan."

Azizi pointed out that some developers are also giving business licence on buying a new home as an added

incentives to new buyers coming to this market. "We like those things so we have done it as well. Dubai has that

'wow' effect and when the 'wow' effect is there the trend will pick up. I still think that it is a good time to buy."

Taimur Khan, research manager, Knight Frank, also acknowledged that demand is there provided the developer is

building the right product.

He noted that Dubai's real estate market will take a couple of years before it gets past the supply glut.

"People are looking at Dubai as a long-term play. A lot of residents are thinking that it is a time to go for a

property buy. If you're here longer than 2 years and 3 months, it makes a lot of sense to buy property with the

kind of payment plans being offered in the market," he added.

Atif Rahman, director and partner of Danube Properties, sees current inventories will be absorbed by the market

by winter when demand will pick up and there might not be enough supplies left for buyers. "That's why, it is the

right time to buy for end-users, who can get the best from bargain."

He noted that Dubai's real estate market will continue to attract investment, regardless of the demand-supply

situation and how it changes based on the market conditions. "Right now, off-plan sales might grow at a slow

pace and sale of ready-to-move-in homes might be an attractive proposition, depending on how the developers

attract the home buyers."

According to Property Finder, off-plan properties accounted for 55 per cent of Dubai market transactions in the

first 2 months of 2019 while secondary market deals made up the remaining 45 per cent of the share. This is a far






cry from the earlier cycles in the Dubai property market when off-plan sales dominated and secondary home

transactions trailed by a huge margin. This unusual balance suggests that Dubai is no longer a purely investor-

driven market.

In terms of volume, 3,069 off-plan homes exchanged hands while 2,463 secondary market deals were clinched in

January and February 2019.

"Robust activity in the secondary market denotes that end-users are still active and purchasing homes in Dubai.

When compared to the first two months of 2018, off-plan property transactions have declined by 7.8 per cent this

year," according to Property Finder research.

"Prices in the secondary market continue to be more attractive and affordable, while sellers have been much

more motivated, one reason due to their competition with off-plan, ready stock," said Lynnette Abad, director of

research and data at Property Finder. Secondary market transactions in January and February 2019 are down only

by a marginal 1.4 per cent in a year-on-year comparison, it added.

For apartments, the Palm Jumeirah, Dubai Marina and International City accounted for the most secondary

market transactions in the first two months; while Dubai Hills Estate, Downtown Dubai and Dubai Creek Harbour

(The Lagoons) took the lion's share of off-plan deals.

Outlook

Azizi predicted that the price of an apartment that now costs Dh1 million will increase to about Dh1.1 million by

December 2019. "Prices will be 10 per cent more expensive, provided it is a good location project."

Going forward, Azizi believes that those properties that are closer to Sheikh Zayed Road such as Downtown, Dubai

Marina, JBR etc. will continue to witness good demand in the next 5 to 10 years.

Taimur Khan of Knight Frank sees Downtown extension, DIFC 2.0, Business Bay and Jumeirah an interesting

developments that will perform well in the next five to 10 years.

"If developers can rightfully match demand with the supply, then there is no reason why we can't see prices rising

at slow but stable rate in the coming years. In 10-years, if we can get CAGR of 3-4 per cent, we would be happy,"

he added.

Source: Khaleej Times

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HERE'S HOW YOU CAN OWN A VILLA FOR

JUST DH240 Monday, March 25, 2019

A sprawling 3-bedroom villa in a medieval Italian town in Abruzzo is up for sale for $66, by way of raffle. A British

man, named Abbott, is willing to sell his property valued at about $282,000 to one lucky winner of the raffle.

So far, Abbott has managed to sell 3,000 raffle tickets from the 6,000 tickets he had. However, in order to declare

the raffle a success, he needs to sell 4,000 tickets at the least. "We have tried to sell the house via the usual

means, using knowledgeable local and international agents, but the market has been quiet and, despite some

expensive advertising, there have been no serious takers," Abbott wrote online.

When efforts to sell the Italian villa went in vain, Abbott came up with the raffle. "As such, we've decided to run

this competition so one lucky winner will get the keys to this gorgeous house in Italy. We're just being as open and

transparent as possible. We want to give the raffle authenticity to make it personal," Insider quoted Abbott as

saying in The Local Italy reports.

The villa owner has a website and social media accounts dedicated to the contest which is open until September

30 or until the 6,000 raffle spots sell. The drawing will be held at the end of October.

While the winner will walk away with the keys of the villa, one second-prize winner will receive $13,270 and five

third-prize winners can claim a hamper filled with food from Abruzzo.


Back to Index






5 MOST AFFORDABLE AREAS TO BUY

PROPERTY IN DUBAI Monday, March 25, 2019

House prices in Dubai continue to be more affordable with the ongoing correction in the sector, leading to a more

than 10 per cent annual decline across a broad spectrum of residential communities.

The Dubai House Price Index for February 2019 indicates that the average annual house price in Dubai decreased

by 10.6 per cent, with some communities registering even higher price declines.

Discovery Gardens, Jumeirah Islands, Arabian Ranches, Emirates Living and Dubai Sports City were some of the

communities that registered annual price declines of more than 11 per cent on average, according to the index

released on Sunday by Property Monitor from Cavendish Maxwell.

As predicted by pundits, the steady downturn is expected to sustain through 2019 before stabilising in 2020 with

recovery expected to start in 2021.

Savills Middle East has forecast a potential decline of another five to 10 per cent in residential real estate prices in

Dubai in 2019 before the market hits the bottom. The predicted decline this year is on top of the six to 10 per cent

decline Dubai residential property prices witnessed in 2018.

P.N.C. Menon, founder and chairman of Sobha Realty, said the Dubai House Price Index is extremely positive for

prospective investors. "We are confident that the 10.6 per cent decline in average house price in Dubai in

February 2019 will enthuse real estate buyers and spur the current sales momentum."

A credit analyst with S&P Global Ratings said residential real estate prices could decline by 10 per cent to 15 per

cent in 2019 and a further five to 10 per cent in 2020. "In this case, we see no upside for Dubai residential real

estate prices in 2021, as we expect it will take a while for the market to absorb oversupply," said Sapna Jegtiani.

The index shows that month-on-month, the price decline for February is 1.8 per cent, 0.1 per cent higher than in

January. House prices in the three months up to February were 4.5 per cent lower than in the previous quarter.

Overall, the average house price in Dubai decreased to Dh 2.6 million.

The Dubai House Price Index tracks residential sales prices for the same selection of properties from September

2015 to date. As of February 2019, apartment and villa/townhouse prices have declined by 16 per cent and 18 per

cent, respectively, compared to their prices of Dh2.1 million and Dh5.6 million in September 2015.

According to February's index, the average apartment price remained relatively stable at Dh1.8 million, with only a

marginal change from January, while the average villa/townhouse price decreased to Dh4.6 million. The rate of

off-plan apartment transfers remained high in February, as has been the case over the past year.

However, the total volume of off-plan apartment transfers decreased by nearly 24 per cent over the first two

months of 2019, compared to the same period in 2018. The volume of villa/townhouse transfers nearly doubled

over the same period, said the Property Monitor report.

Dubai residential property prices have been declining over the past few years after peaking in the second half of

2014, and are approaching levels last seen at the nadir of the 2009-10 property crash, according to S&P.

Since 2014, Dubai property prices and rents have fallen 25 per cent to 33 per cent in nominal terms, according to

industry data. S&P expects prices to fall further, coming close to levels seen at the bottom of the last cycle in 2010.






According to Asteco, as additional supply will result in continued pressure on rents, the rate of decline is expected

towards the end of 2019. Generally low rents are also expected to help tenants move up in terms of size, quality

and location. The additional supply, combined with handovers previously scheduled for 2018, will see an

additional 30,000 residential units and 3.6 million sqft of office space brought to the market.


Back to Index






INDIAN DEVELOPERS SEE LUXURY REAL

ESTATE DEMAND RISING Sunday, March 24, 2019

India's luxury real estate segment, with a customer base of its own, did not witness a slowdown as significant as in

mid-level properties in the last few years and with the latest cut in GST rate, developers say, adding that demand

will pick up from here on.

The major factors for a customer of luxury apartments, they say, are location, amenities, the niche provided and

others, rather than the price as buyers are mostly the affluent people.

The problem of huge unsold inventory, noticed in mid-level properties, is not witnessed in the luxury segment,

which can also be attributed to the limited quantity of construction.

Developers say that although there was a slowdown of demand during the last few months for under-

construction properties, including the high-end market owing to the wait and anticipating cuts in Goods and

Services Tax (GST) from 12 per cent, interest is seen returning after the rate cut.

"People stopped buying for a very short term, looking for a clarification on GST and that is the only reason why

the demand was low and since now the clarification has come and rates are reduced, it has been a booster to the

luxury demand," said Pankaj Bansal, director at M3M, told IANS.

Abhishek Kulkarni, chairman of Pune-based Million SqFt Realty, the demand for high-end property has been

steadily rising as such properties are built in the metros where multinational companies have entered and

businesses have grown in the past few years, leading to a sustained demand from the well-off.

A lot of the buyers in the segment actually purchase properties to invest or park their funds with an aim to

liquidate the property in future and that very trend of investing in high-end property has of late increased among

Indians, market participants said.

Bansal said: "A luxury property creates a much higher incremental value in comparison to a product in the mid-

segment. For example, if price in the mid-segment grows from Rs5,000 to Rs8,000 per square foot over the period

of five years, during the same period, the price of a luxury property would have risen from Rs15,000 per square

foot to Rs25,000-30,000 per square foot."

In terms of investment, the domestic luxury realty market is also a favoured destination for non-resident Indians.

Around 35 per cent of the investment is done by NRIs, said Paritosh Kashyap of 360 Realtors.

"Apart from NRIs, there are lot of local people, politicians, businessmen, who have bought luxury property

primarily for investment purposes," he added.

Experts also noted that the transparency brought in by the Real Estate Regulatory Act and GST has helped the

sector including the high-end segment.

Demand in the segment is rising currently, according to a spokesperson with DLF. "The luxury segment is growing,

people are now well-travelled and aware of what is available. They have been experiencing luxury living across the

world," he said.

Price in the DLF's high-end King's Court property in Delhi ranges from Rs35,000-50,000 per square foot currently.







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ABU DHABI LAUNCHES DH535M HUB71

FOR TECH STARTUPS Monday, March 25, 2019

The Abu Dhabi government has pledged Dh535 million into Hub71, a new initiative to attract startup companies

to set up shop in the UAE capital.

Located in Abu Dhabi Global Market Square, Hub71 is part of Ghadan 21 - a Dh50 billion investment stimulus

fund launched last September by His Highness Sheikh Mohamed bin Zayed al Nahyan, Crown Prince of Abu Dhabi

and Deputy Supreme Commander of the UAE Armed Forces.

Announcing the launch on Sunday, Jassim Mohammed Buatabh Al Zaabi, chairman of the Abu Dhabi Executive

Office, said the UAE capital has proven itself as a place where innovation can succeed and inspire.

"Through the Abu Dhabi government's economic programmes and plans, we're doubling down on our efforts to

make Abu Dhabi a global beacon for technology and innovation."

As part of this initiative, the Abu Dhabi government has announced it will launch an Dh535 million fund

administered by the Abu Dhabi Investment Office to invest in startups and venture capitalists (VCs) at Hub71.

Starting April 28, the fund will co-invest with VCs in Hub71-based tech startups through a government matching

scheme, as well as invest in first-time fund managers to support their establishment and growth in the emirate.

For the first time, Abu Dhabi's Hub71 will bring together three key pillars that are essential for the success of Abu

Dhabi's technology ecosystem - capital providers, business enablers and strategic partners.

Mubadala Investment Company, Microsoft and the SoftBank Vision Fund are founding partners of this new

initiative, working in close collaboration with Abu Dhabi Global Market to create a dynamic business environment

for innovation and entrepreneurship.

The government will be offering generous subsidy packages to startups including 100 per cent subsidies for

housing, office space, and health insurance for up to five full-time employees for two years and up to 50 per cent

subsidies for three years for tech companies with between six and 25 full-time employees.

With over 40 per cent of the region's new tech companies choosing the Emirates, this initiative underpins the

government's forward-thinking investment in the tech sector. Hub71 plays a central role in delivering on the

government's economic strategy, building on the capital's strong industrial foundations, creating new jobs and

sectors, while boosting international investment in the UAE.

The tech hub has been established to address the financial and regulatory roadblocks facing start-ups all around

the world and is finalising talks with global investor firms to deploy funding to exceptional startups.

Mubadala, which has huge investments in the tech sector, will contribute to Hub17 by becoming an active

investor. It will also offer expertise and mentorship and share access to its global network.

Waleed Al Mokarrab AL Muhairi, deputy group CEO and chief executive officer of alternative investments and

infrastructure at Mubadala Investments Company, said the aim of Hub71 is to make Abu Dhabi a world-class tech

start-up ecosystem, driving entrepreneurism, job creation and innovation, helping to diversify the economy

further.






"We seek to develop a global ecosystem that labels the growth of transformational tech companies here in Abu

Dhabi," said Ibrahim Ajami, head of Mubadala Ventures, the technology arm of Mubadala Investment Company.

"As a strategic gateway to the region with access to emerging markets such as India and China and Africa as well

as established markets in Europe and North America, we firmly believe the Abu Dhabi is the perfect place to build

tech businesses.

"We can drive value in to key sectors. We believe we can create the jobs of the future and we also hope we can

foster business opportunities that can build on our existing economic and social infrastructure and strengthen

Abu Dhabi's position as a beacon of innovation and technology," said Ajami.

Ahmed Ali Al Sayegh, Minister of State and chairman of ADGM, said as a regulator and business enabler, ADGM

provides the ideal platform to augment Hub71's interconnected global ecosystem.

"We will continue to deliver valuable business access and tools, supported by progressive regulatory systems, to

enable startups and entities to conduct business with ease, and position Abu Dhabi as their home."


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DEWA RAISES DH7.34B FOR FOURTH PHASE

OF MBR SOLAR PARK Monday, March 25, 2019

The Dubai Electricity and Water Authority (Dewa) on Sunday said it had completed financing for its 950MW fourth-

phase of the Mohammed bin Rashid (MBR) Al Maktoum Solar Park from around a dozen local and international

banks.

Called the Noor Energy 1 project, the fourth phase of the solar park was launched in partnership with Saudi

Arabia's Acwa Power and China's Silk Road Fund.

The lending group to the project include Agricultural Bank of China, Bank of China, China Everbright Bank, China

Minsheng Bank, Commercial Bank of Dubai, Commercial Bank International, Industrial and Commercial Bank of

China, Natixis, Standard Chartered Bank and Union National Bank.

In addition, Bank of China, Commercial Bank of Dubai, Emirates NBD, First Abu Dhabi Bank, Mashreq Bank and

Union National Bank have provided long-term loans.

Upon its completion, the solar park will produce 5,000MW by 2030 with investments totalling Dh50 billion.

Quoting sources, Reuters had earlier put the size of financing at Dh7.34 billion ($2 billion).

Led by Dubai and the UAE, the Gulf region is investing billions of dirhams in generating renewable energy. As per

latest available data, the region had some 146GW of installed power capacity, of which renewable energy

accounted for less than one per cent - 867 megawatts. The UAE accounted for 68 per cent of the total installed

capacity in 2018, followed by Saudi Arabia and Kuwait.

Saeed Mohammed Al Tayer, managing director and chief executive officer of Dewa, said this financing was the

largest equity bridge loan in the region.

"This phase is the largest single-site investment project in the world, using both concentrated solar power [CSP]

and photovoltaic solar technologies based on the independent power producer model with investments up to

Dh15.78 billion. It will use 700MW of CSP: 600MW from a parabolic basin complex and 100MW from a solar tower;

and 250MW from photovoltaic solar panels," he added.

The fourth phase will provide clean energy to 320,000 residences and will reduce 1.6 million tonnes of carbon

emissions annually. The project, which will cover an area of 44 sqkm, is the world's lowest CSP levelised cost of

electricity of 7.3 cents per kilowatt-hour and the lowest levelised cost of electricity for photovoltaic technology of

2.4 cents per kilowatt-hour.

Al Tayer said the solar power projects currently operational in the solar park have a capacity of 413MW. "Dewa

has three more projects under implementation with a capacity of 1,550MW," added Al Tayer.

Mohammad Abdullah Abunayyan, chairman of Acwa Power; Tan Li, Consul-General of China in Dubai; Erik Rovina,

Commercial Counselor to the Spanish Embassy in the UAE; Paddy Padmanathan, president and CEO of Acwa;

Abdul Hamid Al Muhaidib, executive managing director of Noor Energy 1; Waleed Salman, executive vice-

president of business development and excellence at Dewa; and other officials from the UAE, Saudi Arabia and

China attended the event to announce the financial closing.







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HOMEFRONT: 'CAN MY FORMER

LANDLORD CHARGE DH16,750 FOR

DAMAGE I DID NOT CAUSE?' Thursday, March 28, 2019

After moving out, my building manager sent an email saying none of my Dh10,000 deposit would be refunded and that I

owe another Dh6,750 on top. My annual rent was Dh160,000. Upon checking the details of the request for payment, the

breakdown of the charges was:

• Extra 15 days stay: Dh6,750

• Doors: Dh4,000

• Crack a kitchen floor marble tile: Dh2,000

• A broken lock: Dh1,000

• Painting: Dh1,750

•Stove hotplate: Dh1,250

Total: Dh16, 750

Now, let me give you the background on each charge:

The extra stay

We moved in 15 days late and the building manager told us he will run into trouble with the landlord if he changed the

Ejari, so instead, he said he will let us stay for an extra 15 days at no extra cost. Being naive, we didn't get a written

confirmation of this, so, I believe he has every right to charge us.

The bathroom doors and painting

There was a water pressure issue in the building, which stopping the elevators for working for two to three days, as the

shafts were full of water. The building failed to keep the situation under control and water pipes exploded in several

apartments. Many of our belongings were damaged beyond repair, including my laptop. Obviously the water, which was

5-10 centimetres deep, has also damaged walls and doors. I emailed the manager showing photo proof and his reply

was he's trying to find out whether his insurance company will pay for my belongings.

Hotplate

Our hotplate cracked for no reason while we were using it (nothing fell on it or anything). The building manager was

alerted at the time. He replaced the hotplate without mentioning any cost involved. I still have the message proof.

Broken lock

The key got stuck in the lock and his maintenance had to dissemble it. Now he is asking a ridiculously exaggerated

amount of Dh1,000 for the lock, but - at the time - they told us it would cost Dh200 to repair.

Marble tile crack






It's a small crack that we failed to report when we moved in. I presume his aim is just to get money out of us, so although

he knows it was there, he's putting it on us.

Besides all of the above, the building manager caused many issues, such as barring our friends from coming over,

although the contract didn't mention anything of a sort. He would also watch CCTV to see who is coming in, often

questioning me on their nationality. How do I resolve this? UL, Dubai

It appears to me from all of your statements that the only way to get any resolution to this is to file a case at the

Rental Dispute Settlement Committee.

A lot of what you describe cannot be solely down to your responsibility despite the landlord insisting that you pay

for all of the repairs.

I agree the landlord is entitled to get his/her property back in the same condition it was given at the start of an

agreement, however landlords and tenants should also have insurance to cater for any eventualities such as burst

pipes etc.

In any normal rental contract, major maintenance is normally the responsibility of the landlord and minor issues

are on the tenant. This can be easily determined in the rental agreement with any one item costing less than

Dh500 the responsibility of the tenant and above Dh500 falling on the landlord.

Maintenance repairs during a tenancy are one thing but damage is clearly another, so if you have evidence of

items already broken before you moved in, you can use these to contest the extra charges.

Having verbal agreements in writing is imperative as you can now clearly see by the landlord wishing to charge

you for over staying.

Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for 35 years in

London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only.


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SHARJAH TO BUILD DH2BN SOLAR-

POWERED SUSTAINABLE CITY Wednesday, March 28, 2019

Sharjah has become the latest emirate in the UAE to plan a solar-powered community, after the state-controlled

investment fund said it will develop a Dh2 billion sustainable city in partnership with a Dubai real estate

developer.

Sharjah Investment and Development Authority (Shurooq) and Diamond Developers, will build the city over the

next three to five years. Spread across 668,902 square metres, Sharjah Sustainable City will be completed in four

phases. Located 11km from Sharjah International Airport, the city will rely partially on solar power and recycled

waste and water.

“Construction will start in the next three months and the first phase, which covers nearly 25 per cent of the

residential area, will be finished by the last quarter of 2021,” Faris Saeed, chief executive of Diamond Developers,

told

The National. “Remaining phases will be completed in the next one to two years.”

The planned development will include residences, a “sustainability experience centre”, mall, farm, school, mosque

and sports facilities.

Financing will be a mix of three elements — equity, bank loans and off-plan sales, said Mr Saeed.

“Diamond Developers and Shurooq will provide the initial seed money. We are in touch with a few banks to

decide the course of future financing.”

Residences will include 1,120 three, four and five-bedroom villas on sale for between Dh1.2 million to Dh2.7m.

They go on the market today.

Shurooq’s executive chairman, Marwan Al Sarkal, acknowledged a challenging real estate environment, due to an

increase in supply and oil price slump that began in 2014 and lasted three years, but he said “the real estate

market in Sharjah is a bit different”.

Mr Al Sarkal said: “There are not many communities in Sharjah, so we have planned to create a community for the

future.”

Mr Sarkal said the target audience is both UAE nationals and foreign residents and also buyers who want to take

advantage of the long-term UAE visa through investment.

The UAE Cabinet approved a plan last year, under which foreign nationals aged 55 or above are eligible for a five-

year retirement visa if they own property in the UAE worth at least Dh2m.

“This will be the first fully sustainable, net-zero energy community in Sharjah. We will be cultivating vegetables and

leafy greens on site and it will be designed to encourage walkability and the use of clean mobility,” said Mr Sarkal

Diamond Developers also constructed Dubai’s Sustainable City, the region’s first green development. Mr Saeed

said with the Sharjah project, the aim is to prove that sustainable development is also for a middle-income buyer.

“We have the statistics and data from our Dubai project. We know what could go right or what could go wrong.

With Sharjah Sustainable City, we have proved that customers don’t need to pay any extra premium for

sustainability.”






Dubai’s Sustainable City has been operational for more than three years, and has about 3,000 inhabitants.


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GENERATION START-UP: DUBAI PROPERTY

MARKET AND TOURISTS DRIVE VACATION

RENTALS FOR MAISON PRIVEE Sunday, March 31, 2019

Empty luxury apartments in Dubai are finding a new lease on life with Maison Privee, which manages short-term

home rentals that provide returns exceeding traditional leasing, helping homeowners weather a softer real estate

market.

The Dubai-based start-up is tapping in to demand from holidaymakers and business travellers looking for homes

away from home in the emirate, and selling the quintessential Dubai dream: think Palm Jumeirah villa with hot

tub and sea views for a glimpse of the high-end life. It manages and rents luxury residential properties on a short-

term basis, generating up to 30 per cent more revenue for homeowners than an annual lease.

“When homeowners look at the economics, they see they can generate more income and have more flexibility by

renting out their apartments when they’re empty,” said Paul Mallee, co-founder of Maison Privee. “Owners are

beginning to realise there’s an alternative to leaving their units empty.”

Nearly five years after Dubai introduced a law regulating vacation home rentals, the total number of listings in the

emirate increased “substantially”, with active listings growing 161 per cent since 2016, when regulations eased to

allow homeowners to rent residential homes on a short-term basis, according to a 2019 market report by

property consultancy Knight Frank. Dubai’s holiday home market accounts for 2 per cent of Dubai’s total

households, the highest proportion of all other key global hub cities, it said. Dubai’s holiday homes market has

10,766 active listings, comprising nearly half of the total properties registered on the online marketplace and

hospitality service Airbnb. About 60 per cent of these are entire homes or apartments, 31 per cent are private

rooms and the remainder are shared rooms.

Founded in 2017 by former Booz Allen Hamilton consultants Mr Mallee and Rami Shamaa, the idea of the

hospitality start-up addresses a challenging real estate market combined with Dubai’s push to boost visitor

numbers and a growing trend of tourists seeking to experience "local" living in destinations they visit.

“What we’re doing has flourished under the need of homeowners that can’t find long-term tenants,” Mr Shamaa

said. “It’s a big opportunity for us.”

Tech companies such as Airbnb have given the start-up access to a wider pool of potential clients while Dubai

regulations introduced in 2013 has allowed it to operate in a lucrative market.

“We offer guests a hospitality experience in which they can enjoy the benefits of a hotel and the comforts of a

spacious apartment where you have privacy, you can cook and invite people over,” Mr Shamaa said. “It’s

alternative hospitality.”

Maison Privee, French for "private home", has grown from 1,000 guests in its first year to 10,000 guests currently

at its 100 properties dotted across Palm Jumeirah, Downtown and Dubai Marina ranging from villas to

penthouses and one and two-bedroom apartments. They are listed on platforms including Airbnb, booking.com

and propertyfinder.






Maison Privee's guests, who include football players and actors, range from visitors from the GCC and Russia to

bankers or consultants in town for business or relocating and high-net worth individuals. Rent for a top-end one-

bedroom apartment in Dubai Marina reaches Dh1,000 a night while a luxury villa can cost Dh10,000 per night.

The company, which handles cleaning and laundry services as well as check-in, takes 25 per cent of the revenues

as a management fee but delivers 20 to 30 per cent more income to homeowners compared to a traditional lease,

Mr Mallee said.

“We can tailor units to a Chinese or Saudi traveller,” he said. “If they want a Rolls-Royce to pick them up or a chef

in-house, we can provide a tailored service.”

A slow-down in demand for long-term residential rentals has resulted in idle units in the market, which gives the

start-up an opportunity for faster growth, according to Mr Mallee.

“There’s been a very strong growth trajectory and we don’t see that slowing down,” he said. “We see the

opportunity to grow very quickly this year on the back of reduced rental demand and availability of the right type

of stock."

Capitalising on these opportunities, the duo plan to add another 100 units to the portfolio this year and see

potential for between 500 to 1,000 properties in Dubai in the long-run. Maison Privee’s portfolio will be valued at

more than $300 million by the end of this year, the company said.

The business partners are also eyeing expansion beyond Dubai in regional and international markets popular

with tourists, and with home-rental regulations and an available supply of units, where home-rental regulations

are in place and the right type of properties are available.

Regionally, they are “very actively” seeking to expand this year in the Middle East where they see attractive

opportunities in Egypt, Jordan and Oman, Mr Shamaa said. Within the UAE, tourist-friendly Ras Al Khaimah is on

their radar.

Internationally, beach destinations such as Bali and Thailand beckon or southern European cities in Greece, Spain

or Italy that attract more visitors, once the business hits its full operational scale.

“We see our model as globally applicable, we don’t feel constrained by geography,” Mr Mallee said. “It’s on our

horizon, it’s about the timing and the right people then pushing it at the right moment.”

To fuel growth, Maison Privee secured series A funding when it raised $4 million in 2018 from undisclosed

investors to hire more employees and invest in better technology. The founders, who initially funded the start-up,

said they do not see the need for fresh capital.

The start-up, which is profitable, is expected to generate $5m in revenues this year compared to $2m last year as

it capitalises on Dubai’s drive for more tourists and business travellers in Dubai for projects.

“As a consultant, I spent a lot of time in hotel rooms and no matter how nice they are, you get a bit stir-crazy after

a while, so the idea of short-term rentals of residential properties grew legs in my mind,” Mr Mallee said.

“Experiential travel is also growing and people are seeking residential properties to get the ‘live like a local’

experience in different countries.”

The UAE’s decision to ease visa regulations and introduce the 10-year visa will encourage more expats to buy

apartments and make a return on their investment, Mr Shamaa said.

“We have solved a problem: instead of properties being idle and waiting for long-term tenants, we provide the

possibility of living in the apartment then making an income when it’s not in use,” he said.

The business partners are open to expanding by potentially acquiring other businesses that offer the right talent,

tech, properties or access to new markets.






The founders were “lucky” in the timing to start Maison Privee as the regulations were in place, an increasing

supply of apartments were becoming available and Airbnb was gaining popularity, Mr Shamaa said.

In general hotels outperform the holiday homes market in terms of revenue per available room (RevPar) with the

exception of the summer months when they are either on par or holiday homes outperform them, Knight Frank

said.


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DIFC ACCEPTING NOMINATIONS FOR NEW

LONG-TERM RESIDENCY VISAS Friday, March 29, 2019

The Dubai International Financial Centre has invited its clients to nominate individuals for the new long-term

residency visas approved by the UAE Cabinet last year in one of the first signs of the policies coming into effect.

"DIFC is always looking after the best interests of its community," a DIFC spokesperson told The National. "This is

a great opportunity to give talent within the financial services sector the security to stay in the UAE and be a

bigger part of its future."

In an email sent on Wednesday to the more than 2,000 entities registered within the free zone, the DIFC asked

senior executives to identify and nominate people within their organisations who are eligible as “investors,

entrepreneurs, high calibre and outstanding individuals” by April 3. The nomination can also be extended to the

direct family members of the eligible individuals, which include their spouse and children. Successful applicants

will be eligible for either a five or 10-year visa.

The new long-term visas, which can be renewed automatically, were announced in May last year. They allow

expatriate residents to live, work and study in the UAE without the need of a national sponsor and with 100 per

cent ownership of their business.

In January, the UAE issued the first long-term visas to 20 finalists for the Mohammed bin Rashid Medal for

Scientific Distinction. Wider implementation of the new system began on February 3.

It is unclear if other free zones have also asked for nominations. Abu Dhabi Global Market declined to comment

on whether it has similar plans.

Company representatives at DIFC are required to fill in an online form and, after review, the relevant documents

will then be submitted to the Federal Authority for Identity & Citizenship.

"At present, DIFC is ... strictly collecting nominations," said the DIFC spokesperson.

Sam Instone, director of financial advisory firm AES International, and one of the DIFC's email recipients, said: “It

presents a really good opportunity for us to provide something of real benefit and value to members of our

organisation."

Those nominated must be eligible based on the Federal Authority’s specified list of criteria and provisions. For

investors, they must either have invested in real estate with a minimum capital of Dh5 million or in general

investments with a minimum of Dh10m.

For entrepreneurs, the main criterion is that they “own an established and successful business with a minimum

capital of Dh500,000 in a field approved by the Ministry of Economy”.

Individuals with “special talents” and “researchers in the scientific and knowledge fields” are eligible under seven

categories with specific conditions. These categories include doctors and specialists, scientists, innovators,

intellectual elite and senior executives.

The fourth group labelled “high calibre and outstanding students” applies to school and university students inside

and outside the UAE who have obtained high marks and GPAs.






Mr Instone said the visas help provide a thriving SME environment and entrepreneurial culture in the UAE. For

companies, the visas can help attract and retain talent, he said.

“For existing corporates, the investors and entrepreneurs are particularly interesting. It also means the

administrative burden would be reduced significantly. At the moment we go through that visa cycle every two

years,” Mr Instone said. “It would provide better long-term planning and stability for lots of families.”


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DUBAI ECONOMY GROWS 1.94% IN 2018

DRIVEN BY TRADE AND INFRASTRUCTURE

SPENDING Wednesday, March 27, 2019

Dubai's economy grew 1.94 per cent in 2018, driven by growth in trade and government investments in

infrastructure, according to official government figures.

Trade activities rose by 1.3 per cent year-on-year, contributing 18.1 per cent of the total growth achieved by the

emirate in 2018 to Dh398.13 billion. It accounted for nearly a third of the total growth achieved during the second

half of last year, Dubai Media office said on Wednesday, citing data by Dubai Statistics Centre. The emirate’s gross

domestic product expanded by 2.8 per cent in 2017.

The real estate sector, a major contributor to Dubai's economy, expanded by 7 per cent last year and accounted

for nearly a quarter of total growth. Moderate rental rates in the emirate considerably drove demand, it added.

The competitiveness of Dubai’s markets and the efficiency of its economy have “reflected positively on the

productivity of its various economic sectors and pushed the wheels of economic growth”, said Arif Al Muhairi,

executive director at the DSC.

“The improvement in the performance of all economic activities clearly shows the extent of flexibility of Dubai’s

economy,” he said. “Constructive economic policies played a key role in achieving such a balanced economic

performance and growth while considering the current slow economic conditions dominating the global

economy.”

Dubai, which has one of the most diverse economies in the Arabian Gulf region, relies mainly on the non-oil

sector for economic growth. The real estate sector, which has softened in recent years on oversupply and a three-

year oil price slump that began in mid-2014, is expected to bounce back as economic activity gathers momentum.

The emirate is preparing to host Expo 2020 and is also investing heavily on infrastructure ahead of the global fair.

The emirate in January approved its 2019 budget, with higher revenues targets, setting expenditure at Dh56.8bn,

a slight rise from a year earlier. The budget includes an allocation of Dh9.2bn earmarked for infrastructure

projects. The government maintained the size of this year’s budget equivalent to its record 2018 budget.

The government sector achieved an overall growth rate of 1.4 per cent in 2018, and the preliminary data shows

that public spending on infrastructure in 2018 grew nearly a third year-on-year. The spending spree also positively

impacted growth in the construction sector, which rose by 4.5 per cent last year and contributed 14.5 per cent to

total economic growth of the emirate.

In June, Dubai and Abu Dhabi announced they were exempting companies from administrative fines for at least

the rest of the year, as part of efforts to stimulate business growth. Dubai announced in April plans to attract new

investments and cut the cost of doing business across sectors ranging from tourism to financial services.

The emirate slashed aviation and municipality fees in July and scrapped 19 fees related to the aviation industry as

it seeks to attract more than Dh1bn of foreign investments into the sector, state news agency Wam reported.






The transport and storage sector expanded by 2.1 per cent and accounted for 13 per cent of the GDP growth last

year. The sector plays a vital role in Dubai’s economy given that it is highly related to all other economic sectors,

especially tourism. The passenger traffic at Dubai airports climbed 1 per cent year-on-year to 90 million in 2018,

Mr Al Muhairi said.

Activity for hospitality and restaurants grew 4.5 per cent, driving overall economic growth by 11.5 per cent. Data

shows that hotel and hotel apartments reservations grew by 3.2 for the period.

The financial and insurance sectors expanded 0.6 per cent last year. Total credit of all banks operating in UAE

increased by 4.8 per cent to reach nearly Dh1.6 trillion at the end of 2018. About 22 per cent of the credit went to

personal and consumption categories which helped drive demand for goods and services, the media office said,

citing data released by the Central Bank of the UAE.


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DEVELOPER LAUNCHES SALES OF AJDAN

RISE PROJECT IN SAUDI'S AL KHOBAR Friday, March 29, 2019

AlOula Real Estate Development Company has announced the sales launch of its Ajdan Rise project in Al Khobar

Corniche.

The Ajdan Rise tower rises to 130 metres and comprises 187 luxury residential units including penthouses, duplex

apartments, and one and two bedroom units.

The project also features indoor and outdoor pools, spa, two clubs, nine indoor cinema halls, meeting and

banquet halls, a five-star hotel and shops.

Mohammed Alotaibi, CEO of AlOula Real Estate Development, said: “Ajdan Rise embodies our future vision for real

estate development, as it has a unique architecture, supports the modern lifestyles and includes all facilities,

which make it a unique destination to live in and enjoy the quality of life.

"It is located in an extraordinary location at Al Khobar Waterfront, which makes it an ideal destination for those

seeking to live in a luxurious residential community overlooking the sea.”

He added: “Through developing this project, we are providing Al Khobar city with a landmark that will set it apart."

AlOula is currently developing Ajdan Waterfront Destination at the heart of Al Khobar corniche. The project

features major elements including Ajdan Rise plus Ajdan Walk, a retail village, Ajdan Cinema and Ajdan Hotel.

Alotaibi said Ajdan Waterfront Destination is set to transform Al Khobar city into "one of the most maritime

destinations" in Saudi Arabia.


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HOW DUBAI CAN SOLVE ITS AFFORDABLE

HOUSING DILEMMA Thursday, March 28, 2019

El Burai noted that a lack of affordable housing in Dubai is a key barrier to the city achieving its sustainable

development objectives and happiness agenda.

Dubai needs to put housing at the centre of land use plans and provide incentives to developers, such as

inclusionary zoning, land subsidies and tax breaks, to boost affordable supply, according to a senior advisor to the

emirate's Real Estate Regulatory Agency (RERA).

In an article written for the World Economic Forum, Mahmoud Hesham El Burai, aso chairman of the Middle East

Sustainable Development Institute, said the city needs to reconsider its supply-led demand approach, which

focuses on attracting international buyers, who are mainly speculators.

El Burai said currently the private sector does not have the tools or interest to develop affordable housing.

"On the contrary, high margins in the luxury market have encouraged high-end developments. Solving land

supply in the right locations is the most important step in bridging the affordability gap. Dubai’s top-down

planning model needs to readjust itself, and create a masterplan or long-term land usage plan to influence

affordable housing, as Singapore did," he said in the article

He cited several successful international schemes to boost affordable housing demand, such as the UK’s Shared

Ownership Plus, and Australia’s Keystart and Homestart financing programmes, which aim to lower interest rates,

down payments and transfer fees.

El Burai noted that a lack of affordable housing in Dubai is a key barrier to the city achieving its sustainable

development objectives and happiness agenda, as well as its vision of being a smart city.

When Dubai opened up its real estate market in 2002 and allowed foreign ownership, it attracted investors from

more than 200 nationalities.

But El Burai said that with a growing middle class and the demand for a more stable property market, Dubai

needs a consolidated and multi-stakeholder strategy for affordability.

He said one of the major causes of Dubai's affordability problem is its domination by speculators. Between 2003

and 2015, adding that they drove up apartment prices by 300 percent and villa prices by 500 percent, rendering

homeownership difficult.

Research by real estate firm JLL suggests only 20 percent of all stock are affordable, although the demand for the

affordable sector comprises 40 percent of all demand, with homeownership at just 30 percent.

El Burai concluded: "The solution is a multi-stakeholder approach that integrates affordable supply and enablers

of demand, while going beyond economic sustainability to ensure social development and environmental

management. Dubai’s government must develop a long-term land usage plan and integrate its urban planning

functions, placing housing for all at the centre."


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CONSTRUCTION STARTS ON EXPANSION

OF UMM AL QUWAIN FREE ZONE Thursday, March 28, 2019

Construction has started on plans to expand Umm Al Quwain Free Trade Zone amid rising demand from new

clients.

A groundbreaking ceremony has taken place for new office premises and warehouses to keep up with "rapidly

rising demand".

The facilities are scheduled to be completed by March 2020, a statement said.

It added that the new free zone location will span across a total area of two million square metres.

Sheikh Khalid Bin Rashid Al Mu’alla, chairman of Al Quwain Free Trade Zone (UAQ FTZ), said: "We are pleased to

kick start the ambitious expansion project to facilitate and boost the growth of the investors who have been

showing enormous trust and confidence in the free zone since its inception.

"The new free zone location is poised to become a strategic economic hub and is conveniently located near the

highly accessible state highway, Sheikh Mohammed Bin Zayed road, connecting UAQ with the emirates of Sharjah,

Dubai and Abu Dhabi. Proximity to two international airports as well as multiple seaports, make it logistically

ideal."

He added that UAQ FTZ plans to create a sustainable industrial smart city, where small and medium enterprises,

Fintech start-ups, R&D centres, logistics, outsourcing and alternative power related industries can flourish.

"We are building a smart city where its residents will be able to ‘walk to work’. The city will function as an

independent business and industrial hub, with amenities for families and employees such as schools, hospitals,

hotels, shopping malls and even an art and exhibition centre,” he said.


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DUBAI'S FIRST DORCHESTER BRANDED

HOTEL SET FOR 2020 COMPLETION Thursday, March 28, 2019

Omniyat Group has announced the construction of ultra-luxury hospitality brand Dorchester Collection’s first

property in the Middle East is on schedule to be completed by the end of 2020.

The project was launched by the company last year and Omniyat and Dorchester Collection said they are working

with some of the biggest names in the architecture and design sector, including Foster and Partners and Gilles

&Boissier.

The development includes a residential component comprising of 39 apartments expected to be ready for invite

only viewing later this year.

Dorchester Collection will also manage One at Palm Jumeirah, Omniyat’s ultra-luxurious residential tower located

on Palm Jumeirah and home to the most expensive penthouse in Dubai, sold for AED102 million.

Mahdi Amjad, CEO and executive chairman of Omniyat, said: “This partnership with Dorchester Collection has

been a monumental milestone for Omniyat. Our curated partnership with world renowned designers and

architects will showcase a signature experience that combines great hospitality with exceptional design in Dubai’s

most prestigious address on the banks of Dubai Canal.”

Christopher Cowdray, CEO of Dorchester Collection, added: “We are delighted with the construction progress of

our first hotel in the UAE. We look forward to welcoming it to our collection of landmark hotels and bringing

Dorchester Collection’s world-famous standards of hospitality, care and attention to detail to guests from across

the region and beyond.”

The UAE property will join the company’s portfolio of world-famous hotels in locations including London, Rome,

Beverly Hills and Paris.


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HOW THE UAE'S $1.2BN REEM MALL AIMS

TO REVOLUTIONISE SHOPPING Friday, March 29, 2019

Developers behind Abu Dhabi’s $1.2 billion Reem Mall have revealed how innovative data analytics and the

introduction of an integrated e-commerce logistics hub will make it the world’s first fully digitally enabled smart

shopping centre.

The innovative approach will allow Reem Mall to deliver superior sales potential, enhanced customer journey and

personalised service, based on real-time, actionable insights into shopper behaviours and preferences, a

statement said.

The insights were unveiled at the 5th Edition of the Retail Leaders Circle MENA Summit taking place in Dubai this

week.

“With digital transformation currently disrupting retail boundaries and on-demand shopping delivered wherever

and whenever you want, the days of the traditional shopping mall are over,” said Milat Sayra Berirmen, digital

experience manager for Reem Mall, during a keynote speech at the summit.

“At Reem Mall, we are leading this transformation by creating a totally new retail concept – the world’s first fully

digitally enabled mall, supported by an integrated logistics hub... In a world where consumers expect any

experience to be literally at their fingertips, we are taking this one step further by creating an on-demand

connection between customers and retailers.”

He said Reem Mall will deploy cutting edge solutions that will fuse e-commerce platforms with brick and mortar,

creating a new retail model.

“At Reem Mall, we are committed to revolutionizing the retail industry in MENA and beyond,” said Shane Eldstrom,

CEO of Al Farwaniya Property Developments, the developer of Reem Mall.

“Our sector is going through a rapid evolution, driven by technology and fundamental changes in customer

behaviour. Our industry-defining strategy leverages the full potential of digital products and technologies,

supported by a revolutionary 23,000 sq ft integrated logistics hub, with capacity to deliver 30,000 parcels per day.

"This new direction is not only reshaping the way a mall operates, but changing the way customers experience

our space in a social, cultural and community context.”

Reem Mall is being developed by Al Farwaniya Property Developments, a partnership between Agility, Agility

affiliate United Projects for Aviation Services (UPAC), and National Real Estate Company (NREC).

The project is located in the Najmat District on Reem Island, the residential and commercial master development

by Reem Developers. Reem Island is planned to have a population of 200,000 at completion.

Construction on Reem Mall began in late 2017 and is anticipated to be complete by late 2020. The retail, dining

and leisure destination will offer 2 million sq ft leasable area comprising of 450 stores, including 100 dining

options and a range of entertainment activities such as Snow Park Abu Dhabi, a destination snow park attraction.


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GULF CAPITAL JV IN TALKS TO SELL ABU

DHABI'S GALLERIA MALL TO MUBADALA Wednesday, March 27, 2019

Abu Dhabi-based private equity firm Gulf Capital is in talks to sell a mall to Mubadala Investment Co. and is raising

a loan to boost liquidity.

Gulf Related, a joint venture between Gulf Capital’s real estate unit and US developer Related Cos., is close to

selling the Galleria Mall on Abu Dhabi’s Al Maryah Island to the sovereign wealth fund after operating the

development for five years, Karim El Solh, Gulf Capital chief executive officer and Gulf Related’s co-managing

partner, said in an interview.

“We are going to close very soon on that,” Mubadala executive director of real estate and infrastructure, Ali Eid

Almheiri, said in the same interview, without revealing the size of the deal. “It just became obvious that we are the

matching buyer.”

Gulf Capital will also consider selling Al Maryah Central mall once it’s open and “stabilised,” El Solh said. The mall is

due to open in August after more than a year’s delay.

Retail decline

Owners of Abu Dhabi retail space are trying to navigate a market slump after the drop in oil prices triggered a cut

in government spending and slowed economic growth, according to consultant Cavendish Maxwell.

Some landlords are offering rent-free periods, flexible leasing terms and rebates to retain tenants, the company

said in January.

The Middle East’s private equity industry is also struggling after the collapse of Abraaj Group last year. The Dubai-

based firm - which had managed $14 billion at its peak -- faced allegations that it misused client money, sending

shock waves through the ranks of local dealmakers.

Boost liquidity

Separately, Gulf Capital is close to signing a four-year loan that will “boost the company’s liquidity and will fully-

finance all of our future investment needs,” El Solh said, without giving more details. The company has an 850

million-dirham ($231 million) loan maturing in February 2021, according to data compiled by Bloomberg.

The firm also “hopes to announce several new investments and exits over the coming two quarters,” he said.

Gulf Capital recently lost some senior executives, including Walid Cherif and Fidaa Hadad, co-heads of the private

debt unit. The firm hired Sharaf F. Sharaf as managing director for the private debt business earlier this month.


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DUBAI OPENS PHASE 1 OF DUBAI

HISTORICAL DISTRICT Saturday, March 30, 2019

Dubai Culture & Arts Authority (Dubai Culture) has announced that Al Shindagha Museum has opened its doors to

visitors, representing the first phase of the Dubai Historical District project.

Developed in collaboration between Dubai Culture which will manage the museum’s content and operations,

Dubai Municipality, and Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism).Al Shindagha

Museum is a heritage museum that connects Emiratis, residents, and visitors to the rich history of the UAE,

embracing traditional values and revealing powerful continuities between past and contemporary Emirati identity.

It invites visitors to discover reminders of the UAE’s captivating past through innovative exhibitions, organised

events, and specialised public-learning programmes.

One of the highlights of the new museum is the Perfume House, which is home to a multi-sensory perfume

experience that showcases traditional and industrial perfume-making techniques that highlight local excellence.

The Dubai Creek: Birth of a City is another key pavilion of the museum, serving as a starting point for visitors by

introducing them to the history of Dubai through an immersive journey that will encompass artefacts and archival

photography.

Abdul Rahman Al Owais, chairman of Dubai Culture, said: “The opening of Al Shindagha Museum commemorates

the historical city of Dubai and our ancestors’ footprints to ensure they continue inspiring future generations,

strengthening their sense of pride in their country and heritage.

"This major landmark allows us to spread our rich heritage and introduce it to visitors, underlining our vigorous

efforts to safeguard Emirati heritage.

"The museum will serve as an effective addition to the Dubai Historical District and a major attraction for visitors,

providing deep insights, not only on Dubai’s history but also the UAE’s rich heritage.”


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IT’S TIME THE DIRHAM MOVED ON FROM

THE DOLLAR PEG Saturday, March 30, 2019

The UAE was recently ranked 30th worldwide in attracting Foreign Direct Investments (FDI). This was partly the

result of the country’s ascent in its Ease of Doing Business Index, compiled and published by the World Bank.

In its latest report, the UAE was ranked 11th overall.

That, among other factors pertaining to the UAE’s geographic and regional attractiveness as well as its stability,

has ensured the UAE’s appeal in the past years.

Moving forward, though, the UAE will need to tweak its economic policies towards a long-term and more

sustainable trajectory in attracting FDI.

There is one fix that would subsequently lead to another fix, with both contributing directly and indirectly to an

increase in FDI coming in irrespective of everything else.

The main fix is unpegging the dirham from the dollar, which will introduce autonomy in managing and calibrating

the UAE’s monetary policy.

In its latest quarterly report for 2018, the UAE’s Central Bank shed light on key economic facts and figures, which

included the dirham’s appreciation versus other currencies.

According to the report, the dirham has appreciated almost against every single other currency it was measured

against for all of its top non-oil exporters and non-oil importers.

Overvalued

The dirham, put simply, is significantly overvalued.

While an overvalued currency increases the purchasing power of the dirham and encourages consumption and

imports, an overvalued currency discourages exports and confuses the monetary policy of a country that cannot

set its own because of the peg.

Due to the peg, the UAE cannot adjust its monetary policy in accordance to what suits its economic indicators

best, to attract FDI, for instance, when investors are on the lookout for good yields in a stable environment.

Therefore, at times when the UAE should be hiking its interest rate, it cannot do so because it needs to track

monetary policy decisions in the US.

A strong dirham versus other regional currencies deems UAE’s exports unattractive compared to countries like

Turkey. It also discourages tourism because the dirham becomes too expensive for tourists from China or Russia.

On the contrary, at times when the UAE should be lowering its interest rate, it cannot do so either because it will

need to pay more to maintain the peg.

Complexity

That is, it will need to allocate additional assets from its reserves to buy dollars to facilitate business transactions

and trade. This scenario though promotes UAE’s exports and tourism, at the higher cost of maintaining the

dirham-dollar peg.






The complexity of such a peg is one that needs to be balanced out between the benefits of having a more

expensive or less expensive dirham, and how does such a dirham affect the above-mentioned sectors.

For a country that is keen on expanding its tourism sector and being a transit and travel hub for the region,

there’s no alternative for the UAE except to eventually unpeg its dirham from the dollar.

Such a step would produce economic instability and vulnerability when first implemented, of course. However, it

will enable the UAE to sustain its long-term attractiveness for: FDI, tourism, exports, and other non-oil related

sectors of the economy.

To soften the blow towards a one-day floating dirham, the UAE could start with a basket of currencies linked to its

top non-oil trade partners.

The freedom to dictate its own monetary policy will also make sure that the UAE can respond to economic shifts

adequately and decide what works best for its economy relative to what’s happening in economies around it.

The UAE stands to gain from a floating currency and a monetary policy tailor-made to its economic needs,

regardless of when.

The last thought that I want to leave you with: how can we balance a less expensive dirham with imports?

Abdulnasser Alshaali is an economist.

Source: Gulf News

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63% OF TRAVELLERS PASSING THROUGH

DUBAI AIRPORT ARE IN TRANSIT, SAYS NEW

REPORT RELEASED AHEAD OF ARABIAN

TRAVEL MARKET Wednesday, March 27, 2019

There’s a huge market waiting to be tapped for the local tourism industry, with a huge proportion of passengers

arriving at Dubai’s airline terminals merely travelling in transit, the latest analysis showed.

Data from Colliers International revealed that more than 63 per cent of the 89 million flyers travelling through

Dubai International Airport in 2018 were in transit. That's roughly 56 million people making stopovers and not

leaving the airport a year or 153,000 every day.

Out of the millions of travellers, only eight per cent actually left the airport to explore the emirate, a report

published on Wednesday, ahead of the Arabian Travel Market (ATM), claimed.

One of the biggest exhibitions in the travel and tourism industry, ATM will be taking place at Dubai World Trade

Centre between April 28 and May 1, 2019.

However, with the latest initiatives introduced by the emirate to stimulate growth in the tourism sector, Dubai is

very well positioned to attract more tourists.

The UAE cabinet approved last year a decision to exempt transit flyers from all entry fees for the first two days or

48 hours. The visa, which can be obtained at express counters across UAE airports, can be extended for up to four

days for a minimal fee of dh50.

“This visa is not only good for the country’s tourism sector but for the local economy as a whole, enticing

passengers to view their transit not as an unwanted delay in their travels – but as a good opportunity to add value

to their trip and experience everything the UAE has to offer,” said Danielle Curtis, exhibition director for Middle

East, Arabian Travel Market.

Airports Council International has recently named the Dubai airport as the world’s busiest hub for international

travel. From January to December 2018, traffic figures at DXB reached more than 88.8 million, up 1.3 per cent

from the same period in 2017.

The International Air Transport Association (IATA) had earlier predicted that the Middle East could see an extra

290 million flyers on routes to, from and within the region by 2037, with the total market size increasing to 501

million passengers during the same period.

Airports Council International (ACI) named Dubai International as the world’s busiest airport for international

travel. From January to December 2018, passengers passing through the airport reached more than 88.8 million,

up 1.3 per cent from the same period in 2017.

“2018 was also an exciting year for new flight routes with GCC airlines alone adding 58 new flight routes – focusing

on areas of consistent and substantial growth,” said Curtis.






“With two-thirds of the world’s population within an eight-hour flight from the GCC, it is an ideal base for

exploring some of the world’s most interesting and previously inaccessible corners of the world. And the GCC’s

airlines are making it even easier with the continuous addition of new and direct flight routes,” Curtis added.

According to research provider BNC Network, the value of aviation-related projects in the Middle East reached

$50 billion as of 2018.

These investments include the D30 billion allocated for developing Al Maktoum International Airport, Dh28 billion

for the expansion of phase four of Dubai International Airport and Dh25 billion for the development and

expansion of Abu Dhabi International Airport. Sharjah is also expanding its terminal for an investment worth

Dh1.5 billion.

Source: Gulf News

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UAE-BASED RETAIL GIANT LULU GROUP

CONFIRMS NEW MALLS IN BENGALURU,

CHENNAI Wednesday, March 27, 2019

Abu Dhabi headquartered Lulu Group has confirmed plans to build shopping malls in Bengaluru and Chennai as

part of a major expansion of its interests in India. This is on top of the mall projects the Group had announced for

three other Indian cities — Lucknow, Vishakapatanam and Thiruvananthapuram.

It currently operates a mall in Kochi, rated as the largest in southern India.

“We have acquired an ongoing mall development In Bengaluru and will build our own in Chennai,” said Yousuf Ali,

Chairman and Managing Director. “Mall projects give us the best platform to keep expanding our India portfolio

— there’s so much still to do in India’s retail space.

“It was easier to acquire an ongoing project in Bengaluru than go searching for a wide expanse of land. The price

was right and that’s why we closed it at the first opportunity.”

The Bengaluru and Chennai projects are expected to be operational by end of this year.

The Group intends to maintain a similar investment momentum in UAE and Saudi Arabia, its core markets, this

year. A new one opened Wednesday in Sharjah’s Rolla neighbourhood. It generated revenues of $7 billion (Dh25.7

billion) last year, of which nearly 60 per cent was generated from all of its diverse operations in the UAE. This

includes managing shopping malls in Abu Dhabi as well build new ones in Dubai — at Silicon Oasis — and

Sharjah.

Saudi Arabia provided about 10 per cent, while India now accounts for 5 per cent of the top-line number.

“From the outside, one would think we have already covered just about every corner in the UAE with our

properties,” said Ali. “Somehow, I don’t yet see us as having reached that point — even in Dubai, there are

possibilities in some areas that could generate a lot of future traffic.”

As per announced plans, 12 new locations will open in the UAE this year, on top of the 87 it currently operates. A

typical hypermarket costs about Dh60 million to Dh70 million to set up, and that is excluding the cost of land.

The UAE and Saudi Arabia will see a bulk of the commitments,” said Ali. “I don’t see a soft economy as being a

reason not to. Saudi Arabia will see more hypermarkets and at some point and we might expand the logistics hub

in the kingdom.” (Apart from its supermarkets, the Group operates 10 Aramco commissaries and has an

agreement with the Saudi Arabian National Guard to open two shopping centres and seven supermarkets in

Dammam and Al Ahsa.) Outside of the Middle East and India, the Far East will be the next big territory for Lulu to

try and prise open. Two hypermarkets have opened in Jakarta and also in Malaysia.

“Through our sourcing and distribution interests in the Far East, we have a fair bit of idea on the retail sector as

well,” said Ali. “Whenever and wherever we can spot a good location for a hypermarket, we will be there. We are

not limited to these two markets either — Vietnam is a strong possibility.”

New hotel at the old Scotland Yard inches closer to opening date






The Lulu Group keeps adding to its hotel portfolio, confirming that a 153-room property will open later this year

at the original Great Scotland Yard building in London. The renovation, which cost £75 million (Dh364 million), is

being completed in three years.

Staying a night at the hotel certainly doesn’t come on a budget — it could reach up to 10,000 euros (Dh41,415).

The Hyatt Group will manage the property.

Source: Gulf News

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UAE DEVELOPERS ARE TAKING MALLS JUST

BEYOND SHOPPING Saturday, March 30, 2019

Open a certain number of retail stores, create more F&B options, and provide ample space for cinemas and

family entertainment arcades — that used to make for a successful mall.

But that’s not how Timothy Earnest sees it. “There’s a fourth pillar that malls will need to have … and that’s about

setting up moments or experiences that are special,” said the CEO of Al-Futtaim Malls, the developer of Dubai

Festival City and of the upcoming Festival Plaza in Jebel Ali.

“You want to have more people coming in and Instagramming themselves with something that’s just happened at

a mall. It needn’t be a static one-time event, but something that happens though the year. As the mall owner, our

part is to help deliver those moments that people want to share or be a part of.”

Mall retailing in the age of e-retailing has essentially become a story of how well they do on weekends. Get crowds

flocking in from Thursday evening to Saturday closing time and mall owners have reasons to cheer. If they

manage to repeat this over multiple weekends, that makes for a good year.

This is where the social aspect comes in. Earnest reckons that mega-malls in Dubai have an inbuilt advantage over

their counterparts in the US or Europe in getting this right.

“What shoppers here keep telling us every Friday and Saturday is that they love going to the malls,” said Earnest.

“But you don’t see this four-pillar formula elsewhere — 70 per cent of the mall space in the US are with anchor

stores. So, if one big store closes, it could cause problems for the entire mall. Those are outdated concepts … and

it’s been said plenty of times.

“The future of malls is to be not dependent on any store or concept.”

But there is one detail that mall developers in the UAE and the Gulf could still do a whole lot better — not take too

long building the next generation of malls.

“The gestation period for new malls once they open is seven to eight years,” he added. “If the developer wants to

fit in all the elements to make a mall unique, it means taking a far longer time to build. When that happens, some

of these elements may no longer sound cool to visitors.

“What should work better is developers thinking more in terms of “phasing” — do the opening in three years and

then add new phases.

“The thinking used to be that when you build a mall, developers felt they really didn’t need to do that much for the

next five seven years. But now, you better do something new the next year itself and the year after that.”

Between now and 2021-22, Dubai will open the doors to a range of new mall destinations, from the one on the

Palm (the Nakheel Mall) to a massive one for Deira Islands. And onshore, there are the Meydan One Mall, while

Emaar is closing in on the opening date for the one in Dubai Hills.

Al-Futtaim Malls is busy with the Festival Plaza development, which will add 650,000 square feet of gross leasable

area in Jebel Ali, fast emerging as a residential location of choice for freehold property owners. “We didn’t want to

force the market with many more square feet of (leasable) space and be something other than where the

opportunity is,” said Earnest. (The Festival Plaza, which will have an Ikea, is scheduled to open late this year.) Is






there a perfect formula that mall developers need to work on? Say, ‘x’ percentage space for retail, ‘y’ for F&B, ‘z’ for

entertainment and then spread the property with experience-generating opportunities?

“There’s no magic formula — but all four elements need to be balanced to some degree and even changed

seasonally,” the CEO said. “Even a closed mall has to take advantage of the four months of nice weather we have

here.

“But instead of relying on outside parties — for the stores, the F&B, and entertainment — mall owners will have to

come up with their own ways to create the experiences. Where needed, we will take on partners to do something

creative.

“That’s needed because things happen much quicker via partnerships than just wait for the market to produce

something on its own.”

Amid these shifts, will it mean the end of anchor/big-box stores in malls? Anthony Spary, Associate Director at

CBRE M. E., reckons they will be around even at the “next generation of malls”.

“However, the format of these stores will certainly evolve,” Spary said. “We expect new assets coming to market to

focus on big-box anchors such as a cinema, family entertainment, supermarkets or fashion retailers focusing on

fast fashion, for example.

“Fashion brands remain integral to the success of a retail asset with brands now looking to provide more of an

immersive experience within their stores. The key is to strike the right balance between experience,

entertainment, F&B and shopping.”

Source: Gulf News

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DLD INKS DEALS TO BOOST REALTY Saturday, March 30, 2019

New deals will help provide ideal investment opportunities to those investors who wish to own free-hold

properties in Dubai to live, work and invest.

Dubai Land Department (DLD) on Saturday announced that it signed four memorandum of understandings

(MoUs) with local and international government entities on the sidelines of Dubai Property Festival (DPF) to

promote real estate sector.

In a statement, DLD said the new deals will help provide ideal investment opportunities to those investors who

wish to own free-hold properties in Dubai to live, work and invest.

"The signing of the four MoUs reflects the integration between multiple departments and official government

entities in the emirate in various fields as well as the exchange of experiences with international institutions. This

comes as a result of the vast experience gained by DLD in the various processes and mechanisms of regulation

and real estate registration, strengthening our leadership at the global level, and position Dubai as a destination

of excellence and innovation," said Sultan Butti bin Mejren, director-general of DLD.

Majida Ali Rashid, CEO of DLD's Real Estate Investment Management and Promotion Sector, said this year's

edition achieved the desired results.

"One of the most important features of the event was the provision of real estate investment opportunities from

developers representing many countries, with the possibility of negotiating to learn about the features and details

before making on- site deals," she said.

DLD and the DIFC Courts signed a cooperation agreement. Sultan Butti bin Mejren and Justice Omar Juma

Mohammad Al Fujair Al Muhairi, Deputy Chief Justice of the DIFC Courts, signed the agreement to focus on

exchanging knowledge, experiences at all levels, exchanging ideas, studies, and researches related to the parties'

competence and field of work as well as continuous coordination.

DLD signed an agreement with Dubai Television to promote Dubai's real estate market. Sultan Butti bin Mejren

and Ahmed Saeed Al Mansouri, CEO of TV & Radio sector of Dubai Media Incorporated at DMI, signed the

agreement. Under the agreement, Dubai TV will produce a special TV programme in 2019 consisting of 17

episodes, which will be presented weekly, including four episodes during the holy month of Ramadan through

Ramadan councils, and 13 episodes during the last quarter of 2019, which will include topics to be agreed

between the two parties.

Third MoU was signed between Dubai and the Republic of Mauritius to exchange expertise on smart cities,

artificial intelligence, and e-governance as well as mutual promotion of properties in Dubai and Mauritius, in

accordance with the best promotional standards in order to serve and ensure customers happiness.

The fourth MoU was signed with Morocco's Ministry of Land Preparation, Reconstruction, Housing, and City Policy,

which aims to develop activities of mutual interest in the real estate sector and encourage real estate investment.


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RTA OPENS PHASE 2 OF KEY DUBAI ROAD

TO EASE TRAFFIC Friday, March 29, 2019

Roads and Transport Authority (RTA) will open Phase II of upgrading Ras Al Khor Street (Ex Al Awir) and entrances

of International City Project. The project is constructed in coordination with Nakheel, the main developer of the

International City.

The project had been undertaken based on traffic impact study for International City and the Dragon Mart,

especially after the opening of the expansion of Dragon Mart, and the expected growth of traffic density in the

area.

HE Mattar Al Tayer, Director-General and Chairman of the Board of Executive Directors of Roads and Transport

Authority (RTA), said, "Phase II of the project includes improvements of Al Manama Street and widening the

junctions there, namely the extension of Al Manama-Al Warsan 1 Streets (ex Nouakchott St), Al Manama Street-

Sheikh Mohammed bin Zayed Road, and International City-Al Manama Streets. Improvements of junctions also

included the construction of bridges and signalised junctions enabling movement in all directions, namely on Al

Manama-International City Streets (ex Street 414), Al Manama-Warsan 1 Streets, and Al Manama Street-Sheikh

Mohammed bin Zayed Road," said Al Tayer.

The improvement of Al Manama Street-Sheikh Mohammed bin Zayed Road included widening the flyover above

Sheikh Mohammed bin Zayed Road from three to four lanes in each direction to increase its capacity from 4500

to 6000 vehicles per hour. It also included increasing the number of lanes in the sector from Ras Al Khor Street to

Sharjah, and from the International City to Jebel Ali and Abu Dhabi, from one to two lanes. The increase will

double the capacity of slope roads from 800 to 1600 vehicles per hour.

"Al Manama Street has been widened in the sector between Sheikh Mohammed bin Zayed Road and the entrance

of the International City from three to six lanes in each direction. The step will increase the street capacity by 1500

vehicles per hour per direction. Al Manama Street has been widened in the sector from the entrance of the

International City up to Sheikh Zayed bin Hamdan Al Nahyan Street from two to five lanes in each direction. These

expansion works are expected to increase the intake of the street from 3000 vehicles per hour to 7500 vehicles

per hour.

Phase II also included the improvement of the junction of Al Manama Street and the entrance of the International

City to a signalised junction enabling movement in all directions, and the construction of a flyover of three lanes in

each direction, offering free crossing of Al Manama Street. The step will increase the capacity of the street to 4500

vehicles per hour.

Works also included improving the existing surface intersection of Al Manama with Warsan Street 1 (ex

Nouakchott Street) to a signalised junction enabling movement in all directions. A two-lane flyover has been

constructed to serve the traffic from Warsan Street 1 to the left in the direction of Sheikh Zayed bin Hamdan Al

Nahyan Street. It will increase the capacity of the intersection by 3000 vehicles per hour.

Phase I

In July 2018 RTA opened Phase I of Ras Al Khor and the entrances of the International City Project. Works included

improvements on Ras Al Khor Street from Sheikh Mohammed bin Zayed Road to Sheikh Zayed bin Hamdan Al

Nahyan Street. A two-lane flyover was constructed between Warsan 1 and Ras Al Khor Streets enabling free traffic






from Warsan 1 Street to Ras Al Khor Street to the west (in the direction of Dubai Downtown). It included U-turns

for traffic from Ras Al Khor Street to Sheikh Mohammed bin Zayed Road and a service road in both directions of

Ras Al Khor Street to ensure the smooth traffic flow on this key road separating it from International City, Dragon

Mart and Al Warqaa.


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DUBAI PRIVATE SCHOOLS CAN NO LONGER

EASILY RAISE FEES Tuesday, March 26, 2019

The Dubai Executive Council, headed by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of

Dubai, on Monday approved a new framework to regulate school fees, put forward by the Knowledge and Human

Development Authority (KHDA).

It takes into account parents' interests and efforts to obtain education at an acceptable price, while encouraging

the advancement of private schools.

The new framework will be based on encouraging schools to improve performance and maintain desired quality

levels, according to annual inspections and Dubai Statistics Center's price index for education. No private school

will be allowed to raise fees if its rating slips.

The schools that get the same score as the previous year will have the ability to raise its fees in proportion to the

change in the cost of the education indicator.

The participants were briefed on KHDA's proposal to develop and modernise the school fees framework in Dubai,

which was developed in consultation with all stakeholders.

According to the quality indicators of private schools in Dubai over the past years, fee hike for about 90% of

students will not be more than 2.7 per cent.

The updated framework will come into force from the next academic year.


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With over 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,

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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

Executive Director, Valuation & Advisory

+971 4 403 7777

[email protected]

Jenny Weidling BA (Hons)

Manager, Research & Advisory

+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

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news brief 13 - asteco.com€¦ · dubai half of dubai homes sold so far this year were off-plan...

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