NEWS BRIEF 08. SUNDAY 22 February 2015 RESEARCH DEPARTMENT

Transcription

1 NEWS BRIEF 08 SUNDAY 22 February 2015 RESEARCH DEPARTMENT

2 REAL ESTATE NEWS UAE MINISTRY OF PUBLIC WORKS UNVEILS DH10B WORTH OF PROJECTS DUBAI DUBAI MARINA TORCH TOWER FIRE: RESIDENTS ALLOWED BACK IN, RECOUNT HORROR NASDAQ DUBAI LISTING FOR ORASCOM CONSTRUCTION INDUSTRIES SPIN- OFF ALTERNATE ATTRACTIONS TO FILL THE RUSSIAN GAP DH15M DUBAI VILLA LETS YOU LIVE SIDE BY SIDE WITH NATURE NOWHERE FOR SMES TO CALL HOME IN ABU DHABI ALTERNATE ATTRACTIONS TO FILL THE RUSSIAN GAP ABU DHABI ALDAR LEASES 90% OF UNITS IN MBR TOWER ABU DHABI RESIDENTIAL MARKET TO SEE SUSTAINED RENTAL GROWTH ABU DHABI AIMS FOR INCREASE IN CORPORATE TRAVELLERS FROM INDIA NORTHERN EMIRATES FAIRMONT HOTEL OPENINGS IN AJMAN AND FUJAIRAH ADD TO LUXURY SHIFT IN NORTHERN EMIRATES OTHER WORLD ONE TOWER: APARTMENTS IN WORLD S TALLEST RESIDENTIAL BUILDING GO ON SALE LONDON TO HOST FIRST DUBAI PROPERTY SHOW AMID RISING DEMAND Page 2

3 MINISTRY OF PUBLIC WORKS UNVEILS DH10B WORTH OF PROJECTS WEDNESDAY 18 FEBURARY 2015 The Ministry of Public Works has unveiled a portfolio of projects worth more than Dh10 billion, including a hospital in Dubai and a prison in Sharjah. The two projects are among the top four innovative and sustainable projects set to be completed by the ministry, who have ensured these projects follow international standards and are designed to rationalise consumption of energy and water. In a media tour of construction sites in three emirates, the project managers revealed details of the projects that cover infrastructure, education, and health and law enforcement. Located 60km east of Sharjah in Al Dhaid, a massive prison is being built by the ministry with nearly 20 buildings. Developed on an area of 192,000 square metres with a built-up area of 60,000 square metres, the prison, expected to be completed in 2016, cost Dh307 million, Fathiya Helal Bu Hazza, project manager, said. The prison can accommodate 3,282 prisoners. It meets all the requirements of various human rights organisations and international standards. It is being built using a sustainable and eco-friendly approach and will include a control room, a clinic, a court, and a building to prepare inmates, she said. Work on the structure that started in January last year is 35 per cent complete. Fathiya said the prison is being designed to save energy and water by using a solar heating system, a central control lighting system, motion and presence detectors and other technologies. The other big project coming up in Al Ruwayya, Dubai, is Al Amal Psychiatric Hospital, which will replace the old facility by the end of The hospital is being built on an area of 54,000 square feet and will have a capacity of 272 beds. The project, costing around Dh600 million, is 30 per cent complete, Afeefa Mohammad, project manager, said. This hospital has already earned an award for the best futuristic design in the Middle East in 2014 because of the green building methods. Afeefa added that six villas will be built as part of the Al Amal Psychiatric Hospital project where patients can stay after receiving treatment. This is like the second stage for them, which will help in integrating them back in society, she said. Among other projects is a Dh301 million Sharjah villa complex built through the Shaikh Zayed Programme for Emiratis. The Zayed Sports Complex will accommodate 2,000 spectators and is 18 per cent complete. It will serve Eastern Region residents, but mostly the General Authority for Youth and Sports, Rashid Al Nuaimi, project manager, said. A Dh70 million sports complex in Fujairah will include a huge stadium and gymnasium, an Olympics pool in the second phase and a youth hostel in the third phase. Asteco Property Management, 2013 asteco.com astecoreports.com Page 3

4 Al Nouman School, a new eco-friendly school in Fujairah with a capacity for 850 students, was also part of the site tour. The school was described as a modern and smart building by Wafa Al Nuaimi, the project s manager. This is one of the modern and smart buildings that the ministry has implemented. The design incorporates a building management system which provides energy saving through equipment control, solar lighting and other technologies friendly to the environment, she said. The approaches being taken are all in line with the UAE vision 2021 to make the UAE one of the best countries by 2021, said the Minister of Public Works, Dr Abdullah Bel Haif Al Nuaimi, in an exclusive interview after the tour. We are trying to look into different kinds of projects rather than focusing on housing or roads only, and we always think about the environment and how to make these projects sustainable. One of the projects we are really proud of is Al Amal Psychiatric Hospital, a project which has won many prizes even before it has been completed, he said. Speaking about the villa complex in Sharjah, Al Nuaimi said, The Etihad Housing Complex with 406 villas is mostly being gifted to underprivileged UAE citizens. Those who can pay for the villas can pay in instalments in 25 years and with no interest. He also confirmed that they are currently working on many other different projects including buildings that will not only be saving energy but will be creating energy. Al Nuaimi pointed out that the ministry s projects not only takes growth into account but the quality and sustainability of growth. Source: Gulf News Page 4

5 ALDAR LEASES 90% OF UNITS IN MBR TOWER TUESDAY 17 FEBURARY 2015 Nearly 90 per cent of residential units in Abu Dhabi s tallest tower, the Burj Mohammad Bin Rashid, have been leased since its launch in November 2014, Aldar Properties, the tower s developer, announced. The tower had already leased out 50 per cent of its units one week after its launch. Currently, the remaining units include three- to four-bedroom apartments and penthouse suites. Talal Al Dhiyebi, Aldar s chief development officer, said the positive market response reflected the demand for premium residential space in a good location and with amenities. Standing at 382 metres, the tower has 474 units spread over 92 floors. It currently houses 852 residents. Tenants are finding the unique access to the rest of the [World Trade Centre] mixed-used development particularly appealing, boasting a 360 degree retail, commercial and hospitality offering, he said. The tower has direct access to the World Trade Centre (WTC) Mall, the Souq and WTC offices. The tower, formerly known as the WTC, was renamed and inaugurated on November 3. Source: Gulf News Page 5

6 ABU DHABI RESIDENTIAL MARKET TO SEE SUSTAINED RENTAL GROWTH TUESDAY 17 FEBURARY 2015 Abu Dhabi s residential market is expected to see sustained rental growth in 2015, and relatively stable capital values on the back of strong performance in 2014, according to Asteco, a property management company. In its latest report released on Tuesday, Asteco said the Abu Dhabi market had strengthened over the last two years, and is set to continue rental growth in Apartment rental rates were up by 10 per cent year-on-year while villa rentals rose by nine per cent. A prime two-bedroom apartment currently rents for Dh ,000 per annum with high-end units going up to Dh ,000. The figure marks a drop from the peak rates of 2008 that reached Dh280,000. Meanwhile, mid- to low-end units recorded Dh90-120,000 down from highs of Dh225,000 in Villa rental rates are expected to increase during 2015 due to a shortage in quality supply, with occupancy rates expected to remain high. The Abu Dhabi rental market in 2015 is expected to see continuous strong levels of demand. A range of new projects are due for handover in 2015 including an anticipated 13,000 apartments and villas, which will come online [and] will have an impact on the Abu Dhabi real estate market by creating greater competition, particularly in apartment rents, said Jeremy Oates, general manager of Asteco Abu Dhabi. The biggest increases in rental rates in 2014 were on Saadiyat Island, and Reem Island s Marina Square, where recent handovers of projects saw high occupancy levels leading to rental increases as landlords capitalised on strong demand, Asteco s report said. The year was also marked by a positive level of transaction activity as tenants continued to move to quality units. Mathew Green, head of research CBRE UAE, a commercial real estate adviser, said he expected positive performance in 2015, though it would depend on economic circumstances including oil prices. There s not enough quality supply in the market to push rents down at this point, and demand remains strong. Ultimately, lower oil prices will have an impact although the government is trying to spend its way out of it by increasing public spending. It s going to have an impact in terms of sentiment. Investors are less likely to purchase during times of uncertainty, he told Gulf News. Green added that though 2015 is expected to be slower than 2014, there will still be growth. Looking at residential sales, average rates for apartments and villas increased by 15 per cent, and 16 per cent respectively in 2014, with strong performance in the first half of the year. The second half saw more stability. Popular areas for sale included Saadiyat Island and Al Raha Beach, while Al Reem Island generated sales demand in the mid-market units. Sales prices in Al Muneera at Al Raha Beach now average Dh1,425 per square foot up 21 per cent compared with last year, whereas rates at Reef Downtown also climbed 21 per cent to an average of Dh1,000 per square foot. Page 6

7 Source: Gulf News Page 7

8 DAMAC PROPERTIES SECURES DH1.2B WORTH CONTRACTS THIS YEAR TUESDAY 17 FEBURARY 2015 Luxury real estate developer Damac Properties said on Tuesday it has been awarded five major construction contracts worth a total of Dh1.2 billion so far in All of the contracts were awarded within the last month, the company said in a statement. We aim to continue delivering units over the next few years, adding to the 13,000 we have already handed over, as we continue to shape the Dubai skyline with iconic and luxurious developments, stated Niall McLoughlin, senior vice-president of Damac Properties. Damac Properties has awarded Ghantoot the construction contract for the first 981 villas at its new 55 million square feet master development, Akoya Oxygen, while Seidco has won the main contract to build Privé by Damac, a two-tower serviced hotel apartment project overlooking the canal in the Business Bay area of Dubai. The company has also been awarded the building of the iconic clubhouse which will serve the Trump International Golf Club, Dubai at the heart of Akoya by Damac. As of December 2014, Damac Properties has delivered almost 13,000 homes and has a development portfolio of over 38,000 units at various stages of progress and planning. Included are more than 10,000 hotel rooms and serviced hotel apartments under development. Source: Gulf News Page 8

9 ALDAR PROPERTIES REPORTS 90% OF UNITS LEASED AT BURJ MOHAMMED BIN RASHID TUESDAY 17 FEBURARY 2015 Standing at 382 metres, the Burj Mohammed Bin Rashid is the tallest tower in Abu Dhabi and is now home to 426 families and a total of 852 residents, reflecting a strong market response. Currently, remaining units include three to four bedroom family apartments and luxurious penthouse suites which have all been designed as the ultimate in luxury living. With high demands for premium, quality spaces, Burj Mohammed Bin Rashid highlights Aldar 's commitment to creating a portfolio of exceptional residential properties. Talal Al Dhiyebi, Chief Development Officer at Aldar said: "We are extremely pleased by the market's response to the launch of Burj Mohammed Bin Rashid, demonstrating that customers in Abu Dhabi are demanding premium quality living spaces with enviable views and world-class amenities. Tenants are finding the unique access to the rest of the WTCAD mixed-used development particularly appealing, boasting a 360 degree retail, commercial and hospitality offering. Burj Mohammed Bin Rashid is testament to Aldar 's commitment to building flourishing communities and enhancing the lives of those who live in, work in and visit Abu Dhabi." Residents have a direct access to WTC Mall, the modern shopping destination which caters to a diverse range of fashion and food-centric customers. Since launching in 2013, the mall has served and represented the residents of Abu Dhabi with a host of events and shopping experiences that reflect an unprecedented lifestyle, not only within the downtown community, but Abu Dhabi as a whole. Recently, new additions have enhanced an already vibrant dining portfolio, with the opening of Esfahan restaurant, the Mexican restaurant El Chico and Oriental eatery Zaitoun Akhdar, offering alfresco outdoor dining under Khalifa Bridge. Linked to WTC Offices, the tower also has an easy passage to the recently launched Courtyard by Marriott Hotel which will serve as the preferred destination for business visitors and tourists looking for a new place to stay in Abu Dhabi's downtown area. Facilities at the 195-key hotel property include complimentary Wi-Fi across three meeting rooms. Additionally, guests can make the most of several inviting food and beverage outlets, a fitness centre as well as an outdoor, rooftop swimming pool. Comprising 474 units over 92 floors, the Burj Mohammed Bin Rashid's well-appointed living spaces have been designed with the highest quality finishes and appliances and unparalleled views of Abu Dhabi. Serving as a welcome destination for residents and visitors, the tower marks a definitive moment of Aldar 's success in creating trusted, world-class all-encompassing communities. A full leasing team is based in the Leasing Office on the 70th floor in the Burj Mohammed Bin Rashid. 1 bedroom apartments - 85 units 2 bedroom apartments units 3 bedroom apartments units Page 9

10 4 bedroom apartments - 34 Penthouses 12 Source: Aldar Press Release Page 10

11 ABU DHABI RESIDENTIAL MARKET TO SEE SUSTAINED RENTAL GROWTH TUESDAY 17 FEBURARY 2015 Abu Dhabi s residential market is expected to see sustained rental growth in 2015, and relatively stable capital values on the back of strong performance in 2014, according to Asteco, a property management company. In its latest report released on Tuesday, Asteco said the Abu Dhabi market had strengthened over the last two years, and is set to continue rental growth in Apartment rental rates were up by 10 per cent year-on-year while villa rentals rose by nine per cent. A prime two-bedroom apartment currently rents for Dh ,000 per annum with high-end units going up to Dh ,000. The figure marks a drop from the peak rates of 2008 that reached Dh280,000. Meanwhile, mid- to low-end units recorded Dh90-120,000 down from highs of Dh225,000 in Villa rental rates are expected to increase during 2015 due to a shortage in quality supply, with occupancy rates expected to remain high. The Abu Dhabi rental market in 2015 is expected to see continuous strong levels of demand. A range of new projects are due for handover in 2015 including an anticipated 13,000 apartments and villas, which will come online [and] will have an impact on the Abu Dhabi real estate market by creating greater competition, particularly in apartment rents, said Jeremy Oates, general manager of Asteco Abu Dhabi. The biggest increases in rental rates in 2014 were on Saadiyat Island, and Reem Island s Marina Square, where recent handovers of projects saw high occupancy levels leading to rental increases as landlords capitalised on strong demand, Asteco s report said. The year was also marked by a positive level of transaction activity as tenants continued to move to quality units. Mathew Green, head of research CBRE UAE, a commercial real estate adviser, said he expected positive performance in 2015, though it would depend on economic circumstances including oil prices. There s not enough quality supply in the market to push rents down at this point, and demand remains strong. Ultimately, lower oil prices will have an impact although the government is trying to spend its way out of it by increasing public spending. It s going to have an impact in terms of sentiment. Investors are less likely to purchase during times of uncertainty, he told Gulf News. Green added that though 2015 is expected to be slower than 2014, there will still be growth. Looking at residential sales, average rates for apartments and villas increased by 15 per cent, and 16 per cent respectively in 2014, with strong performance in the first half of the year. The second half saw more stability. Popular areas for sale included Saadiyat Island and Al Raha Beach, while Al Reem Island generated sales demand in the mid-market units. Sales prices in Al Muneera at Al Raha Beach now average Dh1,425 per square foot up 21 per cent compared with last year, whereas rates at Reef Downtown also climbed 21 per cent to an average of Dh1,000 per square foot. Similarly, Marina Square saw a 17 per cent increase to an average of Dh1,375 per square foot. Page 11

12 Source: Emirates 24/7 Page 12

13 DUBAI MARINA TORCH TOWER FIRE: RESIDENTS ALLOWED BACK IN, RECOUNT HORROR SATURDAY 21 FEBURARY 2015 Residents of the Torch tower were progressively being allowed back into the tower by the authorities. Select Group, the developer of The Torch in Dubai Marina, commended the Dubai authorities and Kingfield Owners Association for their incredibly swift response in helping to bring the situation under control. Earlier in the day (Saturday) the management committee of The Torch tower confirmed to Emirates 24 7 that residents living from floors six to 28 have now been allowed access into the building that caught fire in the morning hours of Saturday in Dubai Marina. The spokesperson from Kingfield Owner Association Management Services that it was liaising with Dubai Civil Defence to ensure the smooth transition of residents into the building, once it is given an all clear. In a detailed statement, the management company further added: Temporary shelter and provisions for residents in the adjacent Princess Tower has been arranged. "The main focus at this time is to ensure that all residents are safe and looked after while we also assist in arrangements for alternative accommodation for those whose apartments have been affected. Kingfield also stated all fire safety systems functioned effectively during the incident thereby restricting fire damage to the exterior of the building. Hours after a fire ripped through a residential tower in Dubai Marina, residents still appeared shaken up as they recalled the horror of watching their home go up in flames in the early hours of Saturday. While many were able to grab their precious belongings as they were being evacuated, several others stated they were not home when the fire broke out at 1.49am and were left fretting for their pets that were still trapped in the building. At 11am, The Torch tower still remained under lockdown, with residents taking refuge on the 97th floor of the neighbouring Princess Tower, which is also run by the same management company, Kingfield. Foldable mattresses are strewn around the Observatory room that has been turned into a temporary refuge for weary residents, with water and biscuits being supplied by Kingfield as they await an all clear from Civil Defence to re-enter The Torch. Meanwhile, the roads around The Torch remain closed to traffic as the clean-up crew clear the area of fallen debris and broken shards of glass that fell from the one of the largest residential buildings in the emirate. According to residents, they were first alerted of a blaze around 2am, with some stating they were woken up to the sound of frantic banging on the door, while others heard the building fire alarm and the public intercom asking people to evacuate the premises. Page 13

14 British national Justine, who is a resident on the 36th floor, said: I was fast asleep, with my pregnant sister staying over, while my husband is travelling to the UK. We woke up to someone banging on my front door screaming we had to evacuate due to a fire. Justine said she had the presence of mind to grab her phone and car keys before she and her sister ran out of the building; but they chose to remain outdoors as the blaze spread across floors due to the storm. She continued: I couldn t look away as the fire spread from the 50th floor nearly all the way to the 80th floor it appeared. Unfortunately, the strong winds carried the debris across the building façade to the 38th floor on the other side of the tower, causing a second fire. Justine, whose apartment faces the rear of the building, stated she was worried about her belongings left inside but was grateful that all the residents were able to escape the inferno without any injuries. Santhosh, a South African national who lives on the 69th floor of the building, had a similar experience, saying: I was fast asleep when I was woken up around 2am to the sound of the building fire alarm and the intercom blaring that we needed to evacuate due to a fire. I only had time to grab my cigarettes and join the rest of the residents as we fled the building. As a new resident of The Torch, Santhosh stated that he had only moved into his apartment five days ago, with his furniture delivered on Thursday. The folks from du were expected on Saturday to set up my internet and cable connection so I could watch the South Africa vs India Cricket World Cup match, he laughed. At least I am grateful to be alive. Debbie Wilder, a resident of the 59th floor, said: My husband and I managed to escape in our sleepwear and not much else. Our passports, belongings have all been left behind and we are a tad worried considering the fire originated just a few apartments below ours. A French family of five, including an 18-month old baby, admitted they were holidaying in Dubai for a week and had rented an apartment on the 39th floor of The Torch until Monday. Nadine, mother of three, recounted her first thoughts were to get her children to safety immediately. She said: We were all asleep when the fire alarm alerted us to an emergency. I grabbed my youngest who is 18- months-old and yelled for my other two children to leave everything behind and just get out of the building. She continued: With little children with us, we decided to find rooms in the neighbouring hotels for the night, but as nothing was available, we ended up in Princess Tower with the other building residents and wait to be let back in. With young children in tow, Nadine admitted her husband was sent back out to find emergency care supplies, including baby diapers, formula and food considering they were still unaware of how long this lockdown would stay in place. Attendants of the 24-hours Life Pharmacy in the neighbouring building admitted that they had recorded sales of nearly Dh6,000 in the morning hours, with evacuated residents coming into to purchase water, baby products and slippers, with several running out of the burning tower without footwear. However, a 19th floor resident, who was at Jumeirah Lakes Towers at the time of the blaze, admitted she was quite worried for her pet that was still trapped in the building. The irony is that my friends and I were discussing just a few hours earlier how a number of towers had caught fire in JLT and comparatively, the Dubai Marina buildings were so sturdy; and then I drove home Page 14

15 to this, she said. I am more worried though for my cat who is still trapped in the apartment, which is why I refuse to return to my friends as yet. A Kingfield rep on the scene stated that most of the damage sustained by the blaze has been contained to the exterior of the building. The cause of fire is still under investigation. Source: Emirates 24/7 Page 15

16 NASDAQ DUBAI LISTING FOR ORASCOM CONSTRUCTION INDUSTRIES SPIN-OFF MONDAY 16 FEBRUARY 2015 Orascom Construction Industries said yesterday that it would spin off its construction unit in a public offering on the Nasdaq Dubai. The separation of the engineering and construction business from the fertilizers and chemical operations will take effect on March 7, the company said. Shares will also be listed in Cairo. Orascom will offer 15 per cent of the new Dubai-headquartered construction company to investors. It plans to start trading on the Nasdaq Dubai on March 9. The shares will trade in Egypt at about the same time. The management s rationale behind the deal is to create two pure play companies chemicals and construction that would allow for better visibility to investors and banks, said the investment bank EFG-Hermes, which is also advising on the offering. This will refocus management strategy and improve the company s balance sheet. Once traded on Egypt s stock exchange, Orascom decided to delist after it was hit by taxes and tough regulations under the former regime of Mohammed Morsi. In March 2013, the Egyptian tax authority accused the company of tax evasion. It subsequently reached an agreement with the government to pay back the taxes over 10 instalments between 2013 and The Egyptian billionaire Nassef Sawiris, who is also the chief executive of Orascom, moved his company from Egypt to the Netherlands last year. Shares of Orascom will still trade on Euronext Amsterdam, the company said yesterday. Allen Sandeep, the head of research of the Egypt-based Naeem Holding, said that the news was a positive for the Egyptian stock market. However, construction was the weakest segment for the company during the past two years. Egypt s construction sector has struggled since the 2011 revolution, said Mr Sandeep. However, it looks promising in the future, as [Orascom] is now involved in a number of energy projects. Source: The National Page 16

17 ABU DHABI AIMS FOR INCREASE IN CORPORATE TRAVELLERS FROM INDIA MONDAY 16 FEBRUARY 2015 Abu Dhabi Tourism and Culture Authority (TCA Abu Dhabi) wants to grow conference and corporate visitors from India after achieving record tourist arrivals last year. The emirate received 3.49 million guests last year, 400,000 more than it had expected. Yesterday the agency revised visitor targets for its 10 global offices, including India. The focus this year is on India, the Arabian Gulf and China, said Mubarak Al Nuaimi, the director of promotions and overseas offices at TCA Abu Dhabi. The agency is looking to grow the India market by 20 per cent this year, which provided 231,702 guests last year. It is also bidding to increase the Gulf market, which saw 240,478 guests last year, by 30 per cent. The fastest growing source market, China, which saw 120,350 guests last year, is expected to provide a 40 per cent increase in visitor numbers. TCA Abu Dhabi s India office is expected to send at least 4,000 travellers under the meetings, incentives, conferences, and exhibitions (Mice) segment to the emirate this year. India is a mature market, we have several flights between Abu Dhabi and India, Mr Al Nuaimi said. The numbers are growing, and if we can attract only 2 per cent of its total outbound market, it is huge. India agreed last year to allocate 50,000 seats a week each way between Abu Dhabi and India this year, up from 13,300 last year. Also, as part of its expansion plans, Etihad Airways this week launched daily flights to Kolkata, in eastern India, wth 130 seats a day each way. That would bring it close to the seat allocation between Dubai and India. In February last year, India raised the number of seats to Dubai by 20 per cent. The increases are scheduled to come into effect in phases by April. In February last year, there were 55,000 weekly seats each way between Dubai and India. Most of the overseas markets showed a dip in the average length of stay in Abu Dhabi last year, which touched 2.99 nights from 3.13 nights in We need to create more awareness about our attractions, and our hotels need to come up with more packages, Mr Al Nuaimi said. Our target is five nights stay. TCA Abu Dhabi also opened an office in Johannesburg in South Africa yesterday, its eleventh overseas office. Last year, 16,000 tourists from South Africa visited Abu Dhabi, up 25 per cent from a year ago. Meanwhile, Etihad and South African Airways will each operate a daily flight between the African city and the emirate, which is expected to boost tourist arrivals. The number of guests from Germany rose 15 per cent to 138,604 last year. The number of Swiss and Austrian guests also increased. Page 17

18 The tourism agency will also seek to tap into the emerging markets from Armenia, Georgia as Russia and Ukraine are hit by falling oil prices and political crisis. Source: The National Page 18

19 WORLD ONE TOWER: APARTMENTS IN WORLD S TALLEST RESIDENTIAL BUILDING GO ON SALE THURSDAY 17 FEBRUARY 2015 High-rise living often comes at a high price, and apartments in India s World One Tower are no exception. But as well as having the luxury of a Giorgio Armani designed property, investors will also be able to say they own a piece of the world s tallest residential block which is set to reach 1,450 feet. The skyscraper is currently under construction by Indian developer Lodha in Mumbai, and will feature 300 three and four-bedroom homes across 117 floors with completion due next year. The apartments go on sale this week in London through Wetherell Estates, with prices starting at 1.4m (Dh7.9m), according to The Telegraph. The Lodha group is targeting wealthy Indians in the capital, who account for 25 per cent of homebuyers in the super-rich Mayfair area. New York s 432 Park Avenue is currently the world s tallest residential tower at 1,398ft, followed by the Princess Tower in Dubai. World One Tower is part of the scheme featuring three towers which Lodha says are uniquely curvilinear in shape. World One, the world s tallest residential tower, World View and World Crest, stand as a powerful symbol of Mumbai s unfettered aspirations and unstoppable drive, the developer says on its website. Source: The National Page 19

20 FAIRMONT HOTEL OPENINGS IN AJMAN AND FUJAIRAH ADD TO LUXURY SHIFT IN NORTHERN EMIRATES WEDNESDAY 18 FEBRUARY 2015 The Northern Emirates are coming under the focus of luxury hotel operators. Fairmont Hotels and Resorts will become the third international chain after Starwood and Kempinski to enter Ajman. The operator of the Fairmont, Raffles and Swissôtel brands expects to open Fairmont Ajman in May and Fairmont Fujairah later this year. Both were initially slated to open in Its Fairmont Abu Dhabi Marina is due to open next year. The Toronto-based company entered the UAE in 2002 with Fairmont Dubai. It was followed by Fairmont Bab Al Bahr in Abu Dhabi in 2009, and Fairmont the Palm Dubai in The 182-room Fujairah and 252-room Ajman properties will seek to reap the benefits of growing tourist footfall in the Northern Emirates, drawn by competitive room rates compared with neighbouring Dubai. This has taken on greater significance as a weak euro and rouble hit the purchasing power of many European visitors to the country. The weak euro is expected to cause some shift in demand from the more expensive destination [Dubai] to a cheaper one. However, it is likely to be minor and short term in nature unless the devaluation issue persists or worsens in the future, said Rashid Aboobacker, a senior consultant with TRI Consulting. Operators are also attracted to Ajman and Fujairah due to opportunities for genuine beachfront resorts, while there are limited opportunities left in Dubai. The gap in nightly rates between Dubai and its northern neighbours can be dramatic. Rooms could be had at the Kempinski Ajman over the weekend for about Dh850 on a number of travel sites searched yesterday. A room at the company s property on Palm Jumeirah was more than double that for the same nights. Limited infrastructure and entertainment facilities, however, make it tougher for Ajman and Fujairah to compete with Dubai. In 2012, about 283,960 people checked into Ajman s hotels, an increase of 24 per cent on the previous year, with the properties reporting occupancy of 55 per cent, a drop of 7 per cent over 2011, according to the latest figures available from the emirate s tourism department. Fujairah had about 693,587 hotel guests in 2013, an increase of 22 per cent over the previous year, with an average occupancy rate at 62 per cent, which was flat, according to the latest figures available. Source: The National Page 20

21 DH15M DUBAI VILLA LETS YOU LIVE SIDE BY SIDE WITH NATURE THURSDAY 19 FEBRUARY 2015 Nature can be in short supply amid the desert surrounding Dubai. But for those with some serious cash to splash, that sumptuous greenery can be found. The perfect example of this is at Al Barari, located on the edge of Dubailand, where a property in its Dahlia, The Residences villas has come on the market at Dh15 million. This is where luxury architecture meets butterflies, and birds gathering along the lake and waterways, while sand gazelles, desert foxes and hares roam free. Adjacent to a natural reserve and the region s largest privately-owned plant nursery (it produces 700 varieties), the majority of the 217 villas in Phase I of The Residences and The Reserve have been handed over, so only a limited number are available to purchase. This villa in particular was completed in mid-2008 and handed over in It has been on the market since December. For your Dh15m you get a lake and park view, a smart home system to help optimise energy use and water consumption, private swimming pool and ample parking. The living arrangement provides six bedrooms, a maid s room, study, sun room, vaulted ceilings and marble flooring. Birdspotters can take to the roof terrace and immerse themselves in the surrounding bliss. A thoroughly modern kitchen is ready and waiting for master chef or chief toast maker. At more than 12,500 square feet, there is space enough for a sizeable family, and where better for those with kids who wish to be away from the bustle of the city but close enough to not spend all day in the car? For those who like to stay close to home, the estate has the Heart & Soul spa, The Farm, which contains a restaurant and bakery, and Body Language, a health club which also has a juice bar. Q&A Dereck Hoogenkamp, sales and marketing director at Al Barari, reveals more about the development. What else can a property mogul get his or her hands on? While all of The Residences are fully occupied, The Reserve comprises freehold plots and 28 high-end bespoke freehold villas with four or more bedrooms built across four leaves (seven villas per leaf) to service the ever-growing trend of home customisation. Four villas have already been handed over to buyers, 10 shell and core freehold villas have been completed and a further 14 freehold villas are in development. They sound pricey. While prices for The Residences start at Dh15m, The Reserve starts from Dh30m, apartments at Ashjar, which will be completed by December 2016, are from Dh3.4m and Seventh Heaven, scheduled for completion in 2016, from Dh3m. Page 21

22 So it sounds ideal for families.what is there for the children to do? There are many playgrounds and family areas in addition to the six themed gardens for children to play in and explore. There are connected pathways throughout the estate for them to bike on. They can take swimming or tennis lessons as well as exercise classes (mini movers) which combine elements of dance, aerobics, and body weight exercise. The Heart & Soul spa has a Little Prince and Little Princess salon where children can get haircuts, and organic manicure and pedicures using 100 per cent natural and non-toxic products. Source: The National Page 22

23 NOWHERE FOR SMES TO CALL HOME IN ABU DHABI SATURDAY 21 FEBRUARY 2015 Take a walk any evening along the Abu Dhabi Corniche this time of year, and you are bound to see groups of tourists snapping selfies against the city s impressive skyline. With the glowing, wavy facade of the Abu Dhabi Investment Authority Tower, the graceful curves of Etihad Towers and the impressive sky bridge of Nation Towers, the capital is home to some of the most distinctive office blocks in the world. But while property developers in the city spend their time and resources creating bigger and more impressive edifices, many of the city s most numerous tenants small businesses are struggling to find anywhere to rent. Andrew Covill is an estate agent attempting to set up his own business in the capital under the Henry Wiltshire International brand. He is working from serviced office accommodation near Khalifa City while he waits to move into new space in Aldar s headquarters building. For us the process of finding an office wasn t easy, Mr Covill says. If you want anything that is good quality then the rents can be quite high. Parking is a huge problem everywhere in Abu Dhabi and a lot of the places we looked at didn t have parking. Another problem is that you can t get a trade licence without having an office and you can t get an office without a trade licence, so you really need to take serviced office space first, which can add to the costs. Across the city, property agents agree that although small businesses and start-ups make up the largest number of tenants by demand, the amount of office space suitable to house small businesses remains scarce. According to the latest available figures from Asteco, average annual officerents in the capital range between Dh1,700 per square metre for top-notch space in the newest office buildings to Dh600 per sq metre for poor-quality space in older buildings. Compare this with Dubai, which offers a far broader range of accommodation and where Asteco says offices in low-cost areas such as Dubai Investments Park start at Dh50 per square foot (or Dh538.2 per sq metre) and stretch to a maximum of Dh300 per sq ft (Dh3,299 per sq metre) at the DIFC. When it comes to new supply, a lot of it is not satisfying tenant demand, says Paul Maisfield, the chief executive at MPM Properties, the property management arm of Abu Dhabi Islamic Bank. For small companies taking the smallest amounts of office space, we find they tend to look for residential units that have been converted to commercial. So for the rents, landlords tend to quote the equivalent apartment rent rather than a rent in square metres. There is a tendency with these sorts of grade-c office buildings, which have been historically residential for landlords, to still view their investment as a one or two-bedroom apartment, not a commercial entity. You get them all over the city, especially in the older areas such as the Tourist Club or Tanker Mai. And they tend not to come with parking, which is an added expense for these businesses and their staff, says Mr Maisfield. Page 23

24 So with housing rents having increased a lot over the past year, tenants can end up paying rents of up to Dh100,000 a year, Mr Maisfield adds. It s an unfortunate situation, but for small amounts of space there really isn t a lot of choice. If you pay per square metre, rents can be anything from Dh900 to Dh1,400 per sq metre, but they tend to average out at about Dh1,200 per sq metre. Of course, Abu Dhabi does have some purpose-built developments for small businesses. There is the 8,000 sq metre start-up incubator building at Masdar City for a start, which was opened in 2013 to provide space for specialist start-up technology companies. Further into the city, the media free zone twofour54 also provides specialist studio-style office suites for media companies. But agents say this sort of stock is either too expensive or too specialised for most of the businesses looking to take space. Instead, they say many start-ups in the UAE look to establish themselves in Dubai instead, where there is more choice and where there is a range of accommodation which caters to different price points. They point to the work of developers such as Tecom,which is developing the Dubai Design District D3 for short a 21 million sq ft campus that offers the sort of small office space, boutiques, galleries, workshops and artists studios that attract entrepreneurs. It says it will create a lively space for the kind of credible, cutting-edge creative events more often found in London, New York, Paris and Milan. Although much scepticism surrounds the chances of actually achieving this outcome, whatever Tecom creates is likely to exceed the sort of converted housing blocks used by many small businesses in Abu Dhabi, where even waiting for lifts can take far longer than one would expect in an office block simply because the block was not designed for commercial usage. There continues to be a real need for small, cost-effective office space in Abu Dhabi, yet there are limited options available, says David Dudley, the director of operations for the Middle East and North Africa at the property broker Jones Lang LaSalle. Demand remains strong from start-up businesses and companies wanting a satellite office in the capital, he says. The majority of options are either high-grade office space that is expensive and not easily sub-divisible, or poor-quality secondary stock in Abu Dhabi s downtown area, which are generally converted residential buildings. There is real appetite from small businesses to acquire small suites of fitted-out office space at costeffective rents and service charges, Mr Dudley adds. This presents an opportunity for developers to construct mid-rise office buildings offering functional accommodation and flexible floorplates. Back in his serviced office space, Mr Covill is still going through appraisals for his new offices. I think once we ve actually got the space we should be fitted out within a month, he says. Everything takes a long time, but we re getting there. Source: The National Page 24

25 ALTERNATE ATTRACTIONS TO FILL THE RUSSIAN GAP SATURDAY 21 FEBRUARY 2015 Gavin Dias, the deputy general manager for hotels and marketing at the Goa Tourism Development Corporation, talks about Goa s tourism industry. Have hotels in Goa struggled as a result of the decline in Russian tourist numbers? The Indian domestic market is very strong, and luckily this year we have a lot of national holidays clubbed with weekends, so in terms of domestic tourists we ve got a large number coming in who have managed to fill the empty rooms that otherwise would have gone unsold. Has India s introduction of visas on arrival in November had an effect? We now have e-visa facilities for about 40 nationalities. We have already had a huge surge in tourist arrivals who are availing themselves of this facility. I m sure by next season, Goa especially will be a huge beneficiary of the visa on arrival. Tourists always find India and Goa exotic, so I m sure now that they can do it at the click of a button, they will definitely be attracted. We are trying to reduce the paperwork, the hassles involved and people getting traumatised by filling forms upon forms. Is Goa attracting cruise ships? We have got the Mormugao Port Trust. One of the main areas of business they were involved in was the export of [iron] ore. Since it has been stopped or reduced drastically over the past years, alternatively they are beginning to invite cruise ships to dock at the port. Last year we received about 25 cruise ships. Is the GCC region an important market for Goa? There are a lot of non-resident Indians, so they like to return to India a few times a year. In that trip we would also like to lure them to Goa, which is a relaxed environment. The topography and demography do not offer much because [the GCC] also has some lovely beaches and similar climate in terms of heat, so I believe their preference is for a colder climate. Therefore, in terms of getting the locals, the Emiratis, it becomes difficult. What is happening is they prefer to come in for their Ayurvedic [medical] treatment, and that is a major attraction. Source: The National Page 25

26 OPTIMISM AMONG UAE REAL ESTATE INVESTORS HITS 30-MONTH LOW SATURDAY 21 FEBRUARY 2015 An index measuring optimism among investors in the UAE real estate market has fallen to its lowest mark since the middle of 2012, the Royal Institution of Chartered Surveyors has said. Its Investment Sentiment Index fell to 10 from 24 in the fourth quarter of 2014, its lowest level for two and a half years as growth in Dubai's property market slowed. RICS also said its Occupier Sentiment Index fell from 42 to 20 during Q4. While growth in occupier demand continued to outpace that of supply, it was at a slower rate than previous quarters. It said the outlook for prime property, both in terms of rents and capital values, was looking slightly more robust than that for secondary property. Despite the slowdown, RICS forecast that prime prices in the UAE are expected to grow by between percent this year while secondary prices are expected to rise by about 2-3 percent. RICS said in a statement that, according to survey respondents, credit conditions continue to ease. "Robust growth in investment enquiries and easing credit conditions are supporting the 12 month outlook for capital values in both prime and secondary markets, although again, slightly more so in the prime segment," RICS added. It said UAE economic growth remains robust, buoyed by the construction, logistics and hospitality sectors, which is feeding through to inflation. "Because the dirham is pegged to the dollar, financial conditions in the UAE have been tightening through 2014 in anticipation of normalising monetary policy in the US. This has been weighing on investor sentiment of late, although during Q4 sentiment actually turned slightly more positive," the statement added. Source: Arabian Business Page 26

27 DUBAI'S RULER BACKS FOUR MAJOR REAL ESTATE PROJECTS WEDNESDAY 18 FEBRUARY 2015 Four major real estate projects being built by Wasl Asset Management Group in Dubai have won the backing of Sheikh Mohammed bin Rashid Al Maktoum, the UAE's Vice President and Prime Minister of the UAE and Ruler of Dubai. The projects viewed by Sheikh Mohammed included the mixed-use Creek Heights Residences, a development of two towers incorporating a five-star Hyatt Regency Hotel and luxury furnished apartments, news agency WAM reported. Sheikh Mohammed also launched three other development projects to be undertaken by Wasl Asset Management Group including Zabeel Park 1, a mixed-use complex comprising hotels, residential and office buildings, cafes and restaurants, recreational facilities and shops. The project will also include the first year-round snow fountain and a water fountain which will be fitted with the latest lighting technologies. The main tower in the project will take the shape of the number 1, reflecting Dubai s quest to be number one. The mega model of Al Wasl Tower, which will rise on the Sheikh Zayed Road, and will resemble an integrated vertical city and feature the world s tallest ceramic facade was also viewed by the Dubai Ruler. In addition to vertical gardens, the project will include a light museum, the first of its kind in the region, to showcase the history, art and technologies. Sheikh Mohammad also viewed a model of Dubai Gate, which will be located in Jebel Ali near the Dubai Metro station. According to WAM, Sheikh Mohammad expressed his satisfaction with the projects, which "will boost the national economy and help develop and stimulate the tourism sector in the UAE". Source: Arabian Business Page 27

28 LONDON TO HOST FIRST DUBAI PROPERTY SHOW AMID RISING DEMAND FRIDAY 20 FEBRUARY 2015 The first annual Dubai Property Show is to take place at London Olympia from February 27 to March 1, organisers have announced. The free event will host over 120 exhibitors, offering private islands, beach resorts and luxury villas, as well as a selection of posh budget options, to suit every investor s needs, according to Sumansa Exhibitions. Organisers said the show aims to build on the fact that Dubai is now the third most preferred destination to invest in for Brits, and will offer prospective buyers direct access to every part of the region's real estate industry, from consultants and brokers to developers and marketing agents. According to the Dubai Land Department, British investors were second only to Indians for foreign real estate investments, with 2,258 transactions worth AED5.811 billion in the first half of Sunil Jaiswal, president Sumansa Exhibitions said: We re very proud to present the innovative and highly exclusive concept of Dubai Property Show. Under the wise leadership of HH Sheikh Mohammed, Dubai has already attracted global attention and created an extensive investment opportunity for the world, much of which revolves around the hospitality and real estate industry. "Now, the Dubai Property Show intends to ride on this wave, creating awareness about the real estate opportunities in Dubai and highlighting the benefits of investing in a property. He added: Dubai s real estate is one of the best markets in the world and surely the number one in Middle East region, Dubai has achieved great reputation world wide as favourite tourist and business destination. On the other hand British property investors are savvy, they understand the potential here and also value no tax policy on rental and capital gains, plus no restriction on repatriation of funds just makes Dubai Real Estate market not only fruitful but easy and transparent. Source: Arabian Business Page 28

29 With 30 years of Middle East experience, Asteco s Valuation & Advisory Services team brings together a group of the Gulf s leading real estate experts. Asteco s network of offices in Abu Dhabi, Al Ain, Dubai, Northern Emirates, Qatar, Jordan and the Kingdom of Saudi Arabia not only provides a deep understanding of the local markets but also enables us to undertake large instructions where we can quickly apply resources to meet clients requirements. Our breadth of experience across all the main property sectors is underpinned by our sales, leasing and investment teams transacting in the market and a wealth of research that supports our decision making. John Allen BSc MRICS Director, Valuation & Advisory JohnA@Asteco.com Julia Knibbs MSc Manager Research and Consultancy - UAE Juliak@Asteco.com VALUATION & ADVISORY Our professional advisory services are conducted by suitably qualified personnel all of whom have had extensive real estate experience within the Middle East and internationally. Our valuations are carried out in accordance with the Royal Institution of Chartered Surveyors (RICS) and International Valuation Standards (IVS) and are undertaken by appropriately qualified valuers with extensive local experience. The Professional Services Asteco conducts throughout the region include: SALES Consultancy and Advisory Services Market Research Valuation Services Asteco has established a large regional property sales division with representatives based in UAE, Saudi Arabia, Qatar and Jordan. Our sales teams have extensive experience in the negotiation and sale of a variety of assets. LEASING Asteco has been instrumental in the leasing of many high-profile developments across the GCC. ASSET MANAGEMENT Asteco provides comprehensive asset management services to all property owners, whether a single unit (IPM) or a regional mixed use portfolio. Our focus is on maximising value for our Clients. OWNER ASSOCIATION Asteco has the experience, systems, procedures and manuals in place to provide streamlined comprehensive Association Management and Consultancy Services to residential, commercial and mixed use communities throughout the GCC Region. SALES MANAGEMENT Our Sales Management services are comprehensive and encompass everything required for the successful completion and handover of units to individual unit owners. Page 29