NEWS BRIEF 25 - asteco.com · DUBAI PROJECT TO BUILD TOWER 100 METRES TALLER THAN BURJ KHALIFA NOW UNDER WAY THE DUBAI VILLA SURE TO GET EVERYONE TALKING ... and Emirates Hills, along

DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN

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

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

NEWS BRIEF 25 SUNDAY 19 June 2016


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

IN THE MIDDLE EAST FOR 30 YEARS

Page 2



REAL ESTATE NEWS UAE

UAE RANKS IN TOP 10 DESTINATIONS FOR RAMADAN AMONG MUSLIMS

DUBAI

STEADY DEMAND KEEPS DUBAI’S PROPERTY MARKET BUOYANT

RAMADAN DEAL: NO HOUSING RENT FOR A MONTH IN DUBAI, NO AC CHARGES…

NEW DETAILS REVEALED OF DUBAI'S LATEST WORLD'S TALLEST THE TOWER

ONE HOUSE, ONE FAMILY - REPORT BREACHES IN DUBAI

DUBAI’S BARSHA HEIGHTS RENTS UNLIKELY TO GO UP FOR NOW

WORST NOT OVER FOR DUBAI PROPERTY AS RENT DECLINES CONTINUE, SAYS

PHIDAR

ALUBOND STOPS MAKING PLASTIC-FILLED CLADDING USED IN THE ADDRESS

DOWNTOWN DUBAI

DUBAI PARKS AND RESORTS CONSIDERS NAME CHANGE

GFH ACQUIRES MIDWESTERN PROPERTY PORTFOLIO IN THIRD US PURCHASE

LIMITLESS AWARDS DH227.5 MILLION CONTRACT FOR NEW DOWNTOWN JEBEL ALI

TOWERS

MEYDAN RAISES FUNDS THROUGH SUKUK AND TERM LOAN

SIGNS DEAL WITH TOURISM AUTHORITY OF THAILAND TO INCREASE INBOUND

ARRIVALS

MINOR HOTELS TO EXPAND IN DUBAI WITH AVANI DEIRA

ATKINS LAUNCHES NEW ADVISORY BUSINESS

DUBAI PROJECT TO BUILD TOWER 100 METRES TALLER THAN BURJ KHALIFA NOW

UNDER WAY

THE DUBAI VILLA SURE TO GET EVERYONE TALKING




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REAL ESTATE NEWS ABU DHABI

ABU DHABI HOTELS FEEL THE HEAT AS ROOM RATES DROP

ALDAR SELLS DH1 BILLION OF HOMES AT YAS ACRES, READY TO LAUNCH SECOND

PHASE

AL AIN AND SIR BANI YAS ISLAND TO FEATURE IN ABU DHABI’S TOURISM PUSH

DHABI CONTRACTING MOVES INTO PROPERTY DEVELOPMENT

GCC | INTERNATIONAL

SAUDI ARABIAN CABINET APPROVES LAND TAX, FOREIGN INVESTMENT RULES

AWFIS APP AIMS TO BE UBER OF COMMERCIAL REAL ESTATE IN INDIA

CHINESE DEVELOPER WANDA LEADS CHARGE INTO INDIA’S PROPERTY SECTOR

PROPERTY DEVELOPERS FEED INDIANS’ APPETITE FOR A LUXURY LIFESTYLE




Page 4



STEADY DEMAND KEEPS DUBAI’S

PROPERTY MARKET BUOYANT

Saturday, 18 June, 2016

Dubai’s prime residential market is expected to remain buoyant until 2020, according to Core, UAE associate of

Savills.

The “H1 Dubai Investment Outlook” report reveals the prime residential market will benefit from limited

availability in the few established areas and the steady demand, aided by the growing pool of regional and global

investors looking to re-enter the bottoming market.

Company CEO, David Godchaux, says: “The relative resilience of prices in most of the established ultra-prime

areas is an interesting aspect coming to the fore, underpinned by limited new supply and continued demand

from UHNWI investors wanting to own ultra-prime properties in Dubai’s locations such as villas in Palm Jumeirah

and Emirates Hills, along with a few luxury apartments in the Downtown and Marina districts and the new

Jumeirah freehold developments like City Walk.

“The trend is stemmed by the long-term investment horizons and status factors of a majority of owners of prime

residential real estate in Dubai – contrasting with the many investors-speculators of pre-2008.”

A number of new residential projects, driven by the “affordable housing” theme have come to the market in the

last few quarters, with attractive yields appealing to investors and real estate funds looking to diversify their real

estate portfolio.

Godchaux adds: “While we do not believe strongly in affordable housing as a compelling investment in the long-

term in Dubai in comparison to other segments of the market, we still believe there are good opportunities to

seize given that most potential customers in this segment are still unable to shift to ownership due to current

mortgage restrictions keeping the yields at artificially high levels.”

Source: Emirates 24/7

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RAMADAN DEAL: NO HOUSING RENT FOR A

MONTH IN DUBAI, NO AC CHARGES…

Thursday, 16 June, 2016

Property brokers, particularly marketing units in new towers, in Dubai are offering rent-free periods to attract

renters as unit owners in established communities waive off chiller charges.

A scan of online listings on property websites reveal brokers offering one-month rent-free option to renters

signing up during Ramadan.

Better Homes, a real estate brokerage firm, is offering a one month free to renters taking up units in Hilliana

Tower in Al Sufouh.

“Ramadan Offer: 1 month free, 13 months for the price of 12,” says their advert on dubizzle. A two-bed unit is

being rented for Dh150,000 per year.

Property agents are offering similar offers for units in upcoming master developments.

Newly released units in Siraj Tower, Arjan, are available with a same offer of a one-month rent-free period. Rental

for a studio is Dh52,500 per annum and paid in four cheques, according to the listing.

In Discovery Gardens, real estate agents are offering deals with chiller charges waived for tenant.

“The fixed chiller cost comes to around Dh170 a month for a studio unit and going up to Dh200 for a one bed. The

owners are ready to bear this fixed charge. The consumption has to be paid by the tenant,” said AS, a real estate

broker.

In May 2016, Emirates24|7 reported that Al Wasl had announced a special summer offer waiving commission,

lower security deposit and one-month grace period for four-bedroom villas in Dar Wasl.

“It is a good time as you can get good bargains as majority of the people travel out of the country and less likely

plan their migration before holidays,” Parvees Gafur, Chief Executive Officer, PropSquare Real Estate, told this

website.

“Since the chances of getting a tenant is less during this period, some landlords are open and do bring their terms

more appealing to attract new tenants,” he added.


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NEW DETAILS REVEALED OF DUBAI'S

LATEST WORLD'S TALLEST THE TOWER

Wednesday, 15 June, 2016

The oval-shaped bud atop the 928-metre The Tower, the centrepiece of six-square-kilometre Dubai Creek

Harbour development, will house ten observation decks, including The Pinnacle Room that will offer 360-degree

views of the city and beyond.

“The bud will serve as a beacon of light at night, with a lighting system that will evoke the features of a flower bud,

as it seemingly hovers atop the structure,” Aurecon revealed the information in a statement announcing its

collaboration with Santiago Calatrava, the architect of the new Dubai icon.

Termed the most “breathtaking” design feature on The Tower, the Australian company said that the net of cable

that extends from the tower to the ground reflects the delicate ribbing of lily leaves.

The project, which is being developed by Emaar Properties, has a strong focus on energy efficiency and

sustainability, including a cooling system to mitigate the region’s hot climate.

“The water collected from this system will also clean the structure’s facade, for example. Elegant landscaping and

vegetation on and around the tower will encourage solar protection. An integrated shading system and wing

doors will also contribute to its energy efficiency,” Aurecon statement said.

Among the various decks are two VIP observation garden decks that will recreate the splendour of the Hanging

Gardens of Babylon.

The building will also include numerous balconies that rotate outside the facade of the tower, a boutique hotel,

and several event spaces. At ground level, the central plaza will serve as a neighbourhood centre, with retail

stores, a museum, educational facilities and an indoor auditorium.

The Tower is scheduled to open in mid-2020 to celebrate the start of Expo 2020 in Dubai.

Aurecon will work as the engineer/architect-of-record with Calatrava to collaborate on a range of design and

technical features for the project.

In June 2016, Emaar Chairman Mohammed Alabbar said work will commence work on the project next month

with the tower being 100 metres taller than 828-metre Burj Khalifa.

The Tower was officially unveiled in April 2016. Emirates 24|7 revealed in the same month that the tower will have

swinging platforms and open elevators.

“There will be swinging platforms so people will be able to go into the platform and then the platform will turn

and you will in the viewing deck,” Calatrava told this website.


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Page 7



ONE HOUSE, ONE FAMILY - REPORT

BREACHES IN DUBAI

Tuesday, 14 June, 2016

Dubai Municipality has advised property owners renting out their apartments to monitor their tenants and report

any breach of contract.

“Do regular monitoring for the house to make sure the tenant is committed to the agreed contract,” the civic body

said. It refers to four things that property owners need to follow:

# Choose a certified and approved lease contract by the concerned authorities in the emirate for the agreement

between you and the tenant.

# Select the type of individuals living in the housing by lease contract (housing only for one family).

# Do regular monitoring for the house to make sure the tenant is committed to the agreed contract.

# Inform the concerned authorities in the emirate in case the tenant breached the contract terms, such as

residing bachelors or more than one family without your knowledge.

In May 2016, Emirates 24|7 reported that the municipality had initiated a “bachelor eviction drive".

The three adverse impacts of overcrowding an apartment would be on the region’s infrastructure (sewage

networks, electricity grids, parking); the society (customs and traditions) and the life span of the houses (parallax

distortion urban aesthetic).

The municipality has been inspecting areas to remove bachelors from residential areas and were urging residents

to notify the authority if they spot bachelors living in off-limit areas.

The inspections are random and not limited to when people complain of bachelors or families sharing homes.

The fine is Dh10 per square foot (minimum fine is Dh1,000 and maximum of Dh50,000) with the person who

leased (owner/tenant) responsible to pay the fine.

Moreover, companies are not allowed to lease properties for staff accommodation in family areas.

A municipality official told this website in 2015 that almost 80 per cent of the villas in the old residential areas

such as Al Beda’a, Al Jafeleya, Jumeirah 1, Al Rashidiya, etc. were being leased to bachelors or sharing families.

Trakhees, the regulatory authority for the freehold areas such as Palm Jumeirah, Jumeirah Lakes Towers,

Discovery Gardens and International City has held campaigns to stop overcrowding in apartments.

The maximum allowable occupancy limit for apartments under Trakhees is one person per 200 square feet from

the total property area, with violators facing a minimum fine of Dh1,000 or a maximum of Dh50,000.


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Page 8



DUBAI’S BARSHA HEIGHTS RENTS UNLIKELY

TO GO UP FOR NOW

Monday, 13 June, 2016

Tecom was renamed Barsha Heights last week, but the name change is not likely to have any impact on

residential rents.

Property experts say hike in rents and prices are not determined by just a name change, but are driven by

numerous other factors.

“Not simply due to the change in name – it requires more than this to increase values,” Craig Plumb, Head of

Research at JLL Mena, told Emirates 24|7 when asked if rents and price would rise following the name change.

The demand and supply factors determine the rent in a locality along with the facilities available such as schools,

hospitals, shopping centres, etc.

Although some residents fear hike in rents, brokers rule out any such possibility.

“The existing tenants need to fear nothing. Landlords have to follow the rent index slabs or they have the right to

the challenge them. Moreover, landlords do know that their apartment will remain vacant if they ask for higher

rents,” says Rehman S, a real estate broker.

“A number of families are becoming cost conscious and don’t hesitate to move out if the landlords ask for higher

rents as they have ample affordable communities in close distance to Barsha Heights,” he adds.

As per the Real Estate Regulatory Agency rent index, studio apartments can be leased in Tecom (Barsha Heights)

range from Dh50,000 to Dh55,000 per annum (pa), one bedroom units from Dh70,000 to Dh80,000 pa and two-

beds from Dh85,000 to Dh110,000 pa.

Listings on property portals reveal rentals for studio units to range from Dh60,000 to Dh70,000 pa, one-beds from

Dh75,000 to Dh85,000 pa and two-beds from Dh95,000 to Dh115,000 pa.

“I have been hunting for an apartment in Tecom [Barsha Heights] as it is close to my office. I spoke to a number of

brokers, who admit rents will not increase just because of the name change,” says Raghu Kumar, a chartered

accountant.

One of the major recent name changes to happen in Dubai was Dubai World Central being named Dubai South,

which is home to Al Maktoum International Airport, the world’s largest airport, and Expo 2020.

“This project has certainly seen increased interest and stronger sales over past two years – but it is difficult to

isolate how much of this has been due to the change in name. What usually happens is that developers take

advantage of change in projects name to launch a major new advertising/marketing campaign. This may well

have greater impact on take up and prices than simply the change in name,” states Craig.


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Page 9



WORST NOT OVER FOR DUBAI PROPERTY

AS RENT DECLINES CONTINUE, SAYS

PHIDAR

Sunday, June 12, 2016

Experts who have been calling the bottom of Dubai’s residential property market may be doing so too soon, as

further price declines are likely over the next few months, according to Dubai-based Phidar Advisory.

The company’s latest research note on the property market states that rent declines are getting steeper, which is

likely to lead to a price slump in the coming months.

“Talk of a house price floor is entering the media again, yet our research indicates rent declines are accelerating

and will likely continue through the summer," said Jesse Downs, the managing director of Phidar Advisory.

Rent declined by 1.3 per cent month-on-month in May, compared with a compound monthly average decline of

just 0.3 per cent since the most recent market peak in May 2014, Phidar said on Sunday in the note.

“The first 18 months of the decline was driven by the strong dollar, which impacted investment demand directly,"

said Ms Downs. “But now, what’s happening is we’re seeing the delayed impact of low oil prices on regional

liquidity and the impact that has on Dubai employment and demographics. Businesses are finding it harder to

grow."

This has weakened demand, although supply has remained fairly constant in recent years, with an average of

20,000 new homes entering the marketplace per year.

One anomaly in Dubai is that in weaker markets more rental stock becomes available as investors who do not see

an immediate prospect of selling their home decide to lease it instead. This can cause a rush to the bottom

among landlords keen to let stock.

Phidar pointed to a 4.1 per cent monthly decline in asking rents at the lower limits of price brackets during the

first week of this month, compared with a month earlier.

“A lot of contracts are still signed during the summer, especially people who come with their families and I think

landlords are realising they are being given notice and are finding it difficult to find new tenants," said Ms Downs.

“Supply and demand is a moving target. If prices come down significantly, it can appeal to people and draw them

back in from places like Sharjah. There’s about 1 million people who commute to Dubai every day, so technically

there is a lot of pent-up demand, but a lot of those people are also priced out of the market."

Property consultancy Cavendish Maxwell has just begun its quarterly survey of agents in Dubai and will report its

findings next month, but its research manager, Manika Dhama, said that the majority of agents at the end of the

first quarter had predicted apartment and villa rents would decline by up to a further 5 per cent, and its quarter-

end analysis indicated a lower drop of 3 per cent.




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“For Q2 2016, the majority of agents had predicted a largely stable outlook for apartment and villa rents and

sales," said Ms Dhama.

“Early indicators seem to suggest this might be true, though an independent analysis is ongoing and will form part

of our report."

Others have been much more optimistic, indicating that Dubai’s residential property market is now either at – or

near – its nadir after two years of declining capital values. The research company Valustrat revealed last week that

there is “a continuation of evidence of price stabilisation", after its index reported an eighth straight month

without a price decline.

Sameer Lakhani, the managing director of research company Global Capital Partners, said last month that

markets bottomed out at the start of this year. Craig Plumb, the head of Mena research at brokers JLL, said in

April that he expected a recovery in prices by the end of this year.

Source: The National

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Page 11



ALUBOND STOPS MAKING PLASTIC-FILLED

CLADDING USED IN THE ADDRESS

DOWNTOWN DUBAI


The company that supplied the facade cladding of the Dubai hotel that erupted in a blaze on New Year’s Eve has

scrapped the manufacture of plastic-filled panels.

Alubond, the world’s largest maker of aluminium composite panels and the company that supplied The Address

Downtown Dubai, will no longer make the controversial panels containing cores known by the industry shorthand

of LDPE (low-density polythene).

“We have put a stop to LDPE production in the plant," said Shaji Ul Mulk, the chairman of Mulk Holdings, which

owns Alubond. “It’s a decision we took a few days back. We hope our competitors will follow suit."

He said the move would not just affect the company’s UAE business, but also more than 20 countries where it

exports aluminium composite panels made in its Hamriyah factory.

The Address Downtown Dubai took just minutes to erupt in a spectacular ball of fire after the alarm was raised by

some residents in the building at about 9.30pm on December 31 last year. It was the latest in a string of tower

facade fires linked to the use of highly flammable aluminium cladding panels. Less than three months later

another massive blaze broke out in a high-rise block of flats in Ajman that was also covered with such materials.

Almost six months on from the Address blaze, officials have yet to reveal in detail what works will be required to

improve the safety of hundreds of high-rise buildings across the country known to be covered with highly

flammable panels filled with plastic cores. Three of the world’s top aluminium composite panel makers told The

National in February that regional demand for their most fire-retardant panels was almost non-existent. One

major manufacturer said it has supplied just one project with non-combustible panels in five years. Such panels

are about 30 per cent more expensive than the flammable alternatives that have a high proportion of plastic, say

manufacturers. But an updated fire and life safety code is expected to effectively end the use of plastic-filled

panels on high-rise structures by stipulating tests, which are only likely to be met by the most fire-retardant

materials containing little or no plastic.

The fire safety of buildings is coming under focus during a tough period for the regional construction sector, as

some projects are delayed or stopped amid weakening sentiment.

“A lot of companies are struggling, a lot of cheques are bouncing," Mr Mulk said. “Eventually you get paid, but the

cycle is longer."


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Page 12



DUBAI PARKS AND RESORTS CONSIDERS

NAME CHANGE


Dubai Parks and Resorts, the company which owns three linked theme parks in Dubai that are due to open this

autumn, has announced that it is considering changing its name.

The company, which is listed on the Dubai Financial Market, said on Sunday it was due to hold a board meeting

on Wednesday to discuss the name change. Dubai Parks and Resorts was spun off from Meraas, a private

property company owned by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, in 2014.

Last month, the company successfully closed a Dh1.68 billion rights issue to help fund the opening of a fourth

theme park at its Jebel Ali home.


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Page 13



GFH ACQUIRES MIDWESTERN PROPERTY

PORTFOLIO IN THIRD US PURCHASE


GFH has announced its third US real estate acquisition of the past 18 months, with the purchase of a portfolio of

Midwestern distribution, warehousing and industrial properties for about US$65 million, the Bahrain investment

company said on Sunday.

GFH has forecast that the deal, which it expects to be reflected in its second quarter results, will provide an

average cash yield of more than 8.5 per cent and an IRR of 10 per cent for its clients.

The identity of the seller was not disclosed.

“The portfolio is expected to provide a regular cash-flow stream resulting from long leases and [the] strong tenant

base in the properties," the company said in a statement.

“Further, the portfolio is well diversified in terms of tenant base, location and individual properties, strengthening

the portfolio’s performance."

The deal comes 10 weeks after GFH agreed to acquire a 30 per cent stake of No. 1 Palace Street in London’s

Victoria for £100 million (Dh523.5m).

The deal follows the purchase of about 30 buildings in seven US states, and the acquisition of three multifamily

properties in Texas and Georgia.

GFH shares, listed on the Dubai Financial Market, closed 0.12 per cent higher at 87 fils on Sunday.


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Page 14



LIMITLESS AWARDS DH227.5 MILLION

CONTRACT FOR NEW DOWNTOWN JEBEL

ALI TOWERS


Developer Limitless has awarded a Dh227.5 million contract to Sharjah-based contractor Eastern International to

build two new residential towers at The Galleries at Downtown Jebel Ali.

The 27-storey towers are already 70 per cent complete and have a built-up area of 936,000 square feet containing

641 apartments and ground floor retail units. They are due for completion in the third quarter of 2017.

Ali Rashid Lootah, the chairman of Limitless, said: “The Galleries is already a firmly-established, vibrant

commercial hub and home to some of the world’s biggest names in business. With the completion of these two

towers, we can look forward to The Galleries growing into a full mixed-use, strategically-located community."

Companies that already have office space in The Galleries include Siemens, Ericsson, Mondelez and BASF.


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Page 15



MEYDAN RAISES FUNDS THROUGH SUKUK

AND TERM LOAN


The Meydan Group has raised Dh1 billion in debt funding, which the company has said will help to improve its

capital structure and provide cash for new projects.

The company, which owns and operates Dubai’s main racecourse and an adjoining hotel, raised the money

through a Dh700 million sukuk and a Dh300m term loan, both of which will mature in 2024.

The funding was structured and coordinated by Abu Dhabi Investment Bank (ADIB), but a number of other local

banks took part in the sukuk, including Al Hilal Bank, Sharjah Islamic Bank and Ajman Bank.

In a statement, Meydan said the funds had been raised “at a pivotal time" in its commercial development, as it

plans a series of new residential, logistics and facilities projects.

Saeed Humaid Al Tayer, the chairman and chief executive of Meydan Group, said: “This facility assists in realising

our funding objectives to build strategic partnerships with local and regional financial institutions to continue our

growth and enable us to fulfil our business strategy of linking the world with the emirate of Dubai."

Tirad Al Mahmoud, the chief executive of ADIB, said the deal “evidences the results we are achieving by stepping

up our corporate financing activity, with a particular focus on growing companies and real estate".

“We expect the structure of this deal will serve as a model for future mandates," he said.

In August 2015, Meydan unveiled proposals for Meydan One, a new master-planned community spread over 5

million square metres featuring a 711 metre-high residential tower, a major civic plaza, a 100-berth marina, a new

mall and the world’s longest indoor ski slope.

At the time of the announcement, the company said the first phase of development, including the tower, mall,

civic plaza and the world’s longest dancing fountains, would be completed by 2020.


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Page 16



ABU DHABI HOTELS FEEL THE HEAT AS

ROOM RATES DROP

Monday, June 13, 2016

Abu Dhabi’s hotels are feeling the summer heat as room rates drop despite an increase in occu¬pancy last

month.

The demand for hotels in the capital outstripped supply during the month, unlike neighbouring Dubai, according

to the research company STR.

The average room rate across Abu Dhabi decreased 4.1 per cent to touch Dh433.10 even as the average

occupancy rate rose by 1.3 per cent to 74.4 per cent year-on-year.

The revenue per available room, a key measure of a hotel’s profitability, decreased 2.9 per cent to Dh322.06.

Performance was boosted during the Israa wal Miraj holiday weekend in the first week of May, when occupancy

rose to 95.4 per cent across Abu ¬Dhabi, and the average room rate touched Dh558.59, STR said.

Abu Dhabi had about 24,450 hotel rooms at the end of the first quarter.

“There has been a slight decrease in the average daily room rate versus last year and the rates are cyclical, which

is a sign of the market maturing," said Guy Hutchinson, the chief operating officer of Rotana. “As long as the

Government supports the hotel sector by reinvesting in tourism offices globally and airlines, the demand will

always be there."

Rotana operates 12 properties in Abu Dhabi with 3,728 rooms and two properties in Al Ain with 446 rooms.

The capital’s first Four Seasons hotel opened this quarter with 200 rooms. Another 200-room hotel is expected to

open on Al Maryah Island by 2019.


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Page 17



SIGNS DEAL WITH TOURISM AUTHORITY OF

THAILAND TO INCREASE INBOUND

ARRIVALS

Tuesday, June 14, 2016

Emirates airline and the Tourism Authority of Thailand have signed an agreement to increase inbound tourist

arrivals to Thailand.

Under the agreement, the airline and the tourism authority will create a range of joint promotions that will focus

on niche tourism in Thailand.

Green tourism, sport tourism, luxury tourism, weddings and honeymoons as well as medical health and wellness

will be part of the joint deals.

The agreement also holds the possibility of launching a new route from Dubai to pivotal tourism destinations in

Thailand such as Chiang Mai and U-Tapao in Pattaya.

Last year, Emirates carried 700,000 passengers to Thailand via its network.


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Page 18



MINOR HOTELS TO EXPAND IN DUBAI WITH

AVANI DEIRA


Bangkok-based Minor Hotels will expand in Dubai next month as new hotel construction gathers pace in the UAE.

Minor will take over the operations of a 216-room property from Mövenpick in Deira in July. The property’s parent

company is Bin Sulayem Investments.

Called Avani Deira, this will be its first Avani branded hotel in the Middle East.

Minor Hotels will open another Avani at the Ibn Battuta Mall which is undergoing expansion. The 372-room

property is expected to open in 2018. The Thai group has a joint venture with Nakheel to build a 500-room Avani

beachfront resort at the developer’s Deira Islands project.

The supply of new hotels means demand is yet to catch up with the glut of new hotel rooms in the market, putting

a downward pressure on the room rates.

There are 27,344 rooms waiting to come on stream across 93 hotels in the UAE, according to STR on Tuesday. The

UAE followed Saudi Arabia, which reported the largest number of hotel rooms in the planning stage with 34,680

rooms across 77 hotels.

In April, the average room rate in Dubai was Dh771.74, a 15.4 per cent decline year-on-year, while occupancy

declined 0.9 per cent year-on-year to 79.7 per cent, according to STR.

“Although Dubai reported overall performance declines, the [five-day] Arabian Travel Market [in April] helped the

market reach occupancy levels above 80 per cent for [the] five consecutive days," it said.


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Page 19



ATKINS LAUNCHES NEW ADVISORY

BUSINESS


Building consultancy Atkins has announced the launch of a new advisory business, Atkins Acuity, which will advise

on the structuring, financing and preparation of large-scale projects.

The UK-based firm said that Atkins Acuity will initially be launched in the Middle East, Africa and South East Asia,

and already has mandates secured for work in Abu Dhabi, Saudi Arabia, Turkey, Sri Lanka, Kenya, Malawi and

Tanzania.

It has set a target of achieving £200 million (Dh1bn) in revenue within the first five years, and has recruited staff

from organisations including McKinsey, KPMG, the World Economic Forum and Standard Chartered Bank to

achieve this.

Uwe Krueger, Atkins’ chief executive officer, said: “We believe governments, corporates and financial institutions

alike are frustrated at bottle-necks in programmes and a lack of delivery – the Atkins Acuity service is designed to

help change that."


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Page 20



SAUDI ARABIAN CABINET APPROVES LAND

TAX, FOREIGN INVESTMENT RULES


The Saudi Arabian cabinet has approved the fine print of a controversial new tax on undeveloped land aimed at

making it more expensive for owners of urban land to keep it empty.

Under the new “White Land" tax that was approved yesterday, owners of empty plots of urban land designated

for housing or offices in towns and cities have to pay a tax of 2.5 per cent of the value of the land each year,

according to the official Saudi Press Agency.

The taxes will apply to urban undeveloped land plots of 10,000 square metres or more.

The Saudi ministry of housing will specify which lands fall under the new tax law and will collect the taxes, the

agency reported.

Officials are introducing the tax as part of a package of measures aimed at reducing land speculation and

providing more affordable homes in a country where an acute shortage of accommodation is coupled with a

rapidly growing population.

Last week the Saudi Arabian government published details of the housing element of its National Transformation

Plan, a blueprint published under the auspices of the deputy crown prince, Mohammed bin Salman, aimed at

reducing the country’s reliance on crude revenue following the oil price crash.

The plan proposes to increase the annual growth rate in the property sector from about 4 per cent now to 7 per

cent in four years’ time, and to reduce the cost of housing from what averages out as about 10 times gross

salaries to five times.

The plans also envisages increasing the percentage of Saudi families owning their own homes to 52 per cent from

today’s 47 per cent, and to reduce the average time required to approve and licence new housing projects down

to two months from more than two years.

According to local property brokers, the new tax is already increasing the number of homes being developed.

“Before these changes, there used to be significant land appreciation in Saudi Arabia and that meant that the

rules were not encouraging anyone to develop," said Imad Damrah, the managing director of property

consultants Colliers in Saudi Arabia.

“Since these changes, already Colliers has been involved in a number of agreements between developers and the

ministry of housing regarding affordable housing."


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Page 21



AWFIS APP AIMS TO BE UBER OF

COMMERCIAL REAL ESTATE IN INDIA

Wednesday, June 15, 2016

Priti D’Lima, from Mumbai, faced a huge problem when she decided to launch a wholesale diamond jewellery

business in India’s financial capital. She could not find anywhere to work productively and offices were

unaffordable for her.

She tried working from home, but ended up getting distracted and helping her mother with the housework

instead of focusing on her business. Her meetings had to be done at cafes, where she spent a lot of money on

drinks and food. Meanwhile, the co-founder of the company was working from his home, so they struggled to

coordinate.

“For starting out, we didn’t want additional expenses you cannot predict because when you have an office, you

have to pay staff, electricity, Wi-Fi. You’re not even sure about how much you’re going to earn," says Ms D’Lima.

Earlier this year, she discovered Awfis, which allowed her to book a desk at one of its budget co-working offices in

India through an app. She and her business partner now work out of an office in the Churchgate area of south

Mumbai.

“This is really convenient and it’s quite cheap," she says, explaining that she and her partner each pay 11,500

rupees (Dh630) a month for their desks, which includes all expenses and use of a meeting room. “Our productivity

has shot up by 50 per cent since we came here," adds Ms D’Lima.

Awfis, which launched last year, is the brainchild of Amit Ramani, 42, from Delhi, the company’s founder and chief

executive. It offers co-working offices in prime locations in Mumbai, New Delhi, and Bangalore, which are modern,

nicely designed spaces with bold colours and a more relaxed, less corporate ambience. Its app enables users to

book desks, private offices, and meeting rooms for as little as one hour up to a year, with desks priced at about

400 rupees for one day.

“Our goal is to ultimately become the Uber of commercial real estate in India," he says.

A trained architect, with degrees from the School of Planning and Architecture in New Delhi, Kansas State

University, and Cornell University in New York, Mr Ramani has an extensive background of working in real estate

consulting in the US and India.

This experience led him to identify a problem that entrepreneurs in India were facing – how to find budget good

quality office space. This is particularly relevant now thanks to a boom in the number of start-ups in India, with

the government actively trying to encourage entrepreneurs to set up new businesses.

“With security deposits and expensive prices, if you look at it the only guys that can have decent office space today

[in major cities in India] are people who are multinationals or large corporates," Mr Ramani says. “If you look at

the real demand in the country, it’s with the small and medium enterprises, it’s with the start-up, and it’s with the

freelancers. That’s where the demand was but there were no options for them."




Page 22



Today Awfis, which means “awesome office" has 2,500 seats across 10 office locations and it is targeting 10,000

seats by end of the year across 50 locations in seven cities in India, he says.

Before launching Awfis, Mr Ramani had already proved himself a savvy businessman. He worked with the design

company Nelson in the US and then moved back to India in 2008 with the company. In 2010, he bought out

Nelson’s business in Asia, taking over the rights for 14 countries.

That led to launching his own start-up, Awfis, funded by $10 million seed capital, including investment from Radha

Kapoor, a high-profile entrepreneur daughter of Rana Kapoor, the Yes Bank founder and chief executive.

“Every centre is profitable at an operational level," Mr Ramani says. “Overall the company is not profitable

because I have invested a capital investment in 10 centres, which is recouped over two to three years."

He does have competition with a few small players opening up co-working offices in individual locations. Regus,

an international company, also has co-working offices in India.

As of now, Awfis does not have any plans to expand beyond India, with enough to keep it busy in its home

market, says Mr Ramani.

The company also partners with other services such as health insurance providers to encourage them to offer

deals at corporate rates to those working at its offices; it also organises networking events, ranging from comedy

nights to bringing in venture capitalists to do talks.

As well as Awfis’s own office spaces, Mr Ramani has also started listing hotel meeting rooms on his app, which is

another revenue stream he hopes to grow.

“Anything that is underutilised, you can put it onto a technology platform and connect the demand and supply

together," he says. “The reality is there’s a lot of commercial space that is lying vacant."


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Page 23



ALDAR SELLS DH1 BILLION OF HOMES AT

YAS ACRES, READY TO LAUNCH SECOND

PHASE


Aldar Properties has said that it will launch the second phase of its Dh6 billion Yas Acres project after generating

more than Dh1bn by selling out the first phase.

The company said that it plans to start selling 125 homes under the second phase, which will be a mix of three-

bedroom town houses, three and four-bedroom duplexes, and four to six-bedroom villas. Prices will start from

Dh2.9 million.

“We are extremely pleased by the response that the first phase of Yas Acres has generated," said Mohamed Al

Mubarak, the chief executive of Aldar Properties. “With the launch of the second phase we are confident that Yas

Acres will be the next successful chapter in the Yas Island story.

“We believe that Yas Acres represents everything that people, and families in particular, will want from a home.

The quality of the villas and town houses and the design of the community will make Yas Acres one of Abu Dhabi’s

most attractive places to live."

In total, 1,315 new homes are being built at Yas Acres on an 811,108 square metres site that will include a golf

course, club house, parks and schools. The five and six-bedroom villas being launched under phase two will have

golf course views.

The project was unveiled by the developer in April, and work has started on site. It is due to complete in 2019.

In the first quarter of 2016, Aldar reported a 15 per cent year-on-year hike in profits to Dh654m. Revenue was 4

per cent higher at Dh1.23bn.


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Page 24



DUBAI PROJECT TO BUILD TOWER 100

METRES TALLER THAN BURJ KHALIFA NOW

UNDER WAY


The project to build the new super-tall tower set to be 100 metres higher than Burj Khalifa is now under way, with

Aurecon appointed as engineer and archi¬tect of record on the project.

Aurecon will support the tower’s creator, Santiago Calatravra, who is leading the design and engineering works.

The pair will collaborate on a range of technical features planned for the tower, which will be at the heart of

Emaar Properties’ Dubai Creek Harbour development. It will be at least 928 metres high, according to Emaar’s

chairman Mohamed Alabbar, and comprise a central concrete column supported by a network of steel cable

stays.

The top of the structure will house an oval-shaped bud containing 10 observation decks, including a viewing

platform known as The Pinnacle Room offering 360-degree views of the city. The bud will also contain a boutique

hotel, vertical gardens and meeting rooms.

“The Calatrava team were looking to work directly with experts who have had hands-on project experience on

other super-tall and similar mega-projects," said Adrian Jones, Aure-con’s project director.

“The tower will test the craftsmanship of Aurecon as we play our part in making a mark on the built fabric of

mankind."

Aurecon is a building consultancy that was formed in 2009 following a merger between the Australian engineers

Connell Wagner with South African practices Africon and Ninham Shand.

The company is working on a number of important GCC projects, including a Strategic Transportation Master Plan

for Dubai’s Roads and Transport Authority and in Qatar it is working on the expansion of an aggregates terminal

for Qatar Primary Minerals Company.

The tower is scheduled to be delivered ahead of Dubai’s Expo 2020 programme beginning in October 2020. It will

cost US$1 billion to build.


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Page 25



THE DUBAI VILLA SURE TO GET EVERYONE

TALKING

Thursday, June 16, 2016

Those that have lived in the UAE for a certain amount of time often develop an invisible meter that helps them

assess the cost of living.

That meter calculates the cost of housing, both sales and rentals, and becomes part of their DNA. This is

particularly relevant in Dubai where the price of property is a constantly evolving conversation.

That is why when a property comes up for rent that confounds your internal meter, it gets everyone talking again.

A fully furnished, six-bedroom, 24,000 sq ft mansion with 18,000 sq ft of built up area in Dubai’s premier district,

Emirates Hills, is the talking point of the moment. Why, because annual rent to live there comes in at Dh2.5

million.

Sitting in the development’s E sector, the property is one of the biggest villas in the exclusive leafy Dubai

neighbourhood and has one of the best views available - with a full Marina backdrop and views of the fairways

and lakes of The Address Montgomerie golf course.

Outside, the property offers a perfectly manicured garden featuring a large infinity pool and Jacuzzi, BBQ area and

outdoor kitchen.

Inside and starting at the bottom of the house, the basement has been turned into a state-of-the-art gymnasium

with accompanying spa – yes, your own spa with a sauna and steam room. It also accommodates the staff

quarters including two maid’s rooms and a driver’s room.

The ground floor has three open plan reception rooms with marble floors throughout and chandeliers that would

make Versailles blush add to the changing eye line. It also has cleverly domed ceilings that move into a formal

dining room and kitchen that one could mistake for a library such is the amount of dark panneling.

The fixtures and fittings are not modern, with the furniture more appropriate for a traditional, conservative

renter. But for those that like those added extras, there are four balconies, three car park spaces and a private lift.

As a plus, all the white goods are included. At that price, they ought to be.

Q&A

Ryan Kasper, head of luxury sales for Luxhabitat, tells Andrew Scott more about the Dh2.5m rental in Emirates

Hills:

This is a “wow" price for a rental property.

Yes it’s pretty special. I think it’s the biggest villa I have seen for rent for a long time in Dubai. However, at this level

it’s not about the size, it’s all about quality and location. That is why this is priced as it is. It is in the premier

neighbourhood of Dubai and in the premier location of the premier neighbourhood. It is arguably the best plot in




Page 26



Emirates Hills. Also the fixtures and fittings have abeen made for the property at such a level of luxury and

opulence that really the Dh2.5 million rent is something that sits well.

But isn’t the property market softening?

Not at this level. Obviously this sort of property does not come on the market often and does not go overnight.

We have had it on our books for about four months. At this level, a rental is not uncommon because Dubai is

transitory for many people starting businesses who demand a property similar to what they are used to but do

not want the extra burden of buying and outfitting another residence. And it is highly likely the person that takes

this villa will have at least one other property

Does the interior design suggest a certain type of renter?

I don’t think this will be taken by a family with young kids. We have one very interested client who is also looking

at a two bedroom penthouse, as I said its not about the size it’s about the quality.


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Page 27



UAE RANKS IN TOP 10 DESTINATIONS FOR

RAMADAN AMONG MUSLIMS

Thursday, June 16, 2016

The UAE has emerged among the top 10 travel destinations during Ramadan among Muslim travellers this year,

according to a new study.

The UAE ranked eighth in the list topped by Malaysia, Indonesia and Singapore, according to the first Ramadan

Travel Report released by MasterCard and Singapore-based halal tourism online platform CrescentRating. The

UAE is likely to emerge as the second most popular destination in 2022, and the top travel destination during

Ramadan in 2027.

The report studied 49 destinations, excluding Saudi Arabia as its most important travel destination for Muslims,

and took into account the aver¬age daytime temperatures, fasting duration and the MasterCard-CrescentRating

Global Muslim Travel Index 2016 scores forecast until 2030 to draw the ranking. The report did not study the

number of expected visitors to these destinations.

Ramadan is expected to take place in cooler months for the next few years after 2023, making destinations such

as the UAE, Qatar and Oman more attractive for Muslim travellers, according to the report. Other destinations in

the Middle East such as Jordan, Egypt, Morocco and Tunisia are also expected to benefit from the lower

temperatures.

“The growing trend by Muslims to travel during the fasting period will [also] see destinations in the [Arabian Gulf]

region become the most attractive by 2023," the report said.

Last year, there were around 117 million Muslim visitors globally, or 10 per cent of the entire travel market,

according to the travel index.

The figure is expected to touch 168 million visitors by 2020, or 11 per cent of the travel market, generating

US$200 billion in revenues.

“Ramadan travel has been largely ignored by the industry despite the growing trend in the last few years," said

Fazal Bahardeen, the chief executive of CrescentRating and online portal for halal-friendly holiday packages

Singapore-based ¬HalalTrip.

Local start-ups are also tap¬ping into the trend. Dubai-based Islamic travel website Irhal.com has identified Dubai

as the fourth most popular destination after Amman, Bahrain and Beirut among its users this year through May,

based on 700,000 visitors to the website.

“As far as travel during Ramadan is concerned, the generally low rates offered by hotels in Dubai during this

month are a major attraction for tourists," said Irfan Ahmad, the chief executive of Irhal.com. “The safety and

security of the city and late- night shopping – particularly during the last few days of Ramadan – are big draws for

Dubai. Halal food is also a major advantage during Ramadan."

The website lists more than 90 city guides on halal restaurants, mosques and prayer timings besides places to

travel.




Page 28



“An increasing number of governments are boosting their efforts to attract more Muslim visitors to their

countries," said Safdar Khan, the group head of Islamic payments for South East Asia at MasterCard.

Saudi Arabia, as part of its National Transformation Plan, expects to increase the number of Haj pilgrims to 2.5

million by 2020 up from 1.5 million, and more than double Umrah pilgrims to 15 million from 6 million at present

as part of its religious tourism drive.


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Page 29



AL AIN AND SIR BANI YAS ISLAND TO

FEATURE IN ABU DHABI’S TOURISM PUSH

Saturday, June 18, 2016

Abu Dhabi will position itself as an archaeological, adventure and shopping destination, according to its tourism

chief, as it seeks to boost visitor numbers to the emirate.

Abu Dhabi is one of the world’s best-kept secrets, said Mohamed Al Mubarak, the chairman of the Abu Dhabi

Tourism and Culture Authority (TCA Abu Dhabi).

“We are going to do a much better job in redefining Abu Dhabi to the world," he told The National. “The majority

of the world does not know what Abu Dhabi can offer. That’s all going to change."

Marketing efforts will promote the emirate’s various possibilities, from kayaking in the Eastern Mangroves and

frolicking on the beaches of Saadiyat to roaming the Al Ain museums and exploring archaeological remains on Sir

Bani Yas Island, as well as visiting its Yas Island theme parks and shopping at its growing number of malls.

The emirate’s tourism agency also expects to wrap into its marketing activities the rash of new attractions coming

up in the next five years, which includes the Louvre Abu Dhabi, a Warner Brothers theme park and shopping malls

on Al Reem and Al Maryah islands.

TCA Abu Dhabi will promote Al Ain as the top heritage site in the Arabian Gulf, along with the wetlands in Abu

Dhabi and archaeological sites dating back 10,000 years on Sir Bani Yas Island.

Rashid Aboobacker, the associate director at TRI Consulting in Dubai, said Abu Dhabi has strong potential to

achieve a niche position because it has a variety of unique experiences to offer to tourists.

“We expect the emirate to attract a growing number of tourists in the future, particularly families from [the Gulf]

and Asian countries," he said.

Mr Al Mubarak, who is also the chief executive of the developer Aldar, took over the helm at TCA Abu Dhabi in

August last year, and said he asked his team to focus on highlighting the many sights the emirate has to offer. “To

be honest with you, I got a bit annoyed and tired of hearing from people from all over [that] there’s not much to

do in Abu Dhabi," he said. “[People say] spend a couple of hours in Abu Dhabi [when you come to the UAE] but

spend most of your time in Dubai – I was annoyed in that regard. You need to spend just as much time in Abu

Dhabi as you do Dubai, given the number of things to do."

Abu Dhabi received 4.1 million tourists last year, up 18 per cent on the previous year. It is yet to announce its

visitor target for this year.

Visitors from India, Saudi Arabia and the UK form the majority.

Albert Dias, the co-founder and chief technology officer of Sharjah’s online travel portal Musafir.com, said the

emirate’s efforts will pay off with Indian tourists in particular.




Page 30



“Although Abu Dhabi has made a commendable effort in positioning itself as the more authentic emirate, it has

yet to capture the imagination of India’s burgeoning middle class," Mr Dias said. “Most Indian tourists tend to look

for an extravagant and culturally accommodating escape when they think of a holiday in the Emirates.

“We believe that Abu Dhabi’s efforts will pay off over time as India’s tourists mature from status-seekers to

explorers."


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Page 31



CHINESE DEVELOPER WANDA LEADS

CHARGE INTO INDIA’S PROPERTY SECTOR


Chinese developers are looking to build major residential developments in India, according to the global property

services firm JLL.

Dalian Wanda Group, which is owned by China’s richest man, Wang Jianlin, in January revealed plans to develop a

US$10 billion industrial zone in Haryana state in north India called Wanda Industrial New City.

“Other Chinese developers are also interested in India and most likely to follow suit," said Anuj Puri, the chairman

and country head of JLL India.

“Interestingly, large residential projects are of particular interest to other Chinese developers. It will be interesting

to see if larger deals are signed this year. With China experiencing a slowdown in their own economy, the

developers there will get an opportunity to benefit from India’s growth story.

“The Wanda investment will be one of its biggest, so far. It is also bigger than most deals that other Chinese

companies investing abroad carried out in 2015."

The China Land Development Company and ZTE Corporation earlier this year signed memorandums of

understanding to develop industrial parks and smart cities in Haryana.

JLL said that foreign developers were likely to look at partnering with Indian builders on projects.

The prime minister Narendra Modi has been trying to encourage more foreign investment into the country.

“Increased participation by foreign players is expected to help in the development of quality projects, which will

benefit end users and simultaneously create opportunities for Indian investors too," Mr Puri said.

He said that Japanese private equity investors are also eyeing opportunities in India’s property sector.

“Japanese developers are keen to explore strategic partnerships and enter into joint ventures with Indian builders,

and are particularly interested in industrial projects," he said.

“There is likely to be an inflow of at least $2bn in investments from Japan into the Indian real estate market over

the next three years."


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Page 32



DHABI CONTRACTING MOVES INTO

PROPERTY DEVELOPMENT


Dhabi Contracting is moving into the property development market in an attempt to diversify its revenue stream

as contractors’ margins come under pressure in the capital.

The company, which has a turnover of Dh6 billion and a workforce of more than 6,500, is embarking on three

major new development projects in which it will build an apartment block by Al Raha Beach, a residential building

at Saadiyat Marina and a hotel at Ruwais in the Western Region of Abu Dhabi.

Bishoy Edward, the chief operating officer of the 33-year-old contracting company, said margins have come under

pressure in Abu Dhabi over the past two years, with current tender bids coming in approximately 20 per cent

lower than they were two years ago, when there was a greater abundance of work. Undertaking its own

development work not only keeps its staff busy, but also allows it to build efficiently and generate recurring

income, he said.

“Being a contractor gives me an advantage. I know how much this [building] will cost me. If a contractor tells me it

is going to cost Dh100 million, then I know that I can build it for Dh50m," Mr Edward said.

Piling and foundation works are under way at the apartment block at Al Raha Beach, which will contain 120 units

over 11 floors.

A 13-storey apartment block is also being built in the Saadiyat Marina district, close to New York University Abu

Dhabi, and the company is in talks with the university about a lease deal for the entire building.

He said that he was keen for both projects to start as soon as possible, especially as the supply of new homes in

Abu Dhabi remains low, despite demand holding up.

“If I start very quickly, then I can finish quickly and then there will be less competition around end-users," Mr

Edward said.

Dhabi Contracting’s third project is a five-star hotel that will be built in Ruwais and operated as an Anantara hotel

by Thailand’s Minor Hotels Group. Hotel demand in that area far outstrips supply, with the 1,200-room Danat

Hotel regularly booked out by employees of the state-owned Abu Dhabi National Oil Company and contractors,

he said. The design phase of the beachfront hotel, which will also have partially submerged apartments with clear

floors showing water underneath, has just been completed by the consultancy Aecom.

Alongside these projects, the contractor is still busy on others that include a Dh3bn contract to deliver 663 new

villas and 20 mosques at a purpose-built community in Ruwais.

It is also looking to diversify through new subsidiaries.




Page 33



PROPERTY DEVELOPERS FEED INDIANS’

APPETITE FOR A LUXURY LIFESTYLE


When Jitu Virwani, the chairman and managing director of Embassy Group, an Indian property developer, bought

a home in the Springs in Dubai, he was so struck by the concept of the project, which aims to provide all the

facilities of daily life within the development, that he incorporated the ideas into the 300-acre township he is

building on the outskirts of Bangalore.

“I kept looking at [Dubai Springs] and thinking it was perfect development for the Indian circumstances," says Mr

Virwani. “It’s very smartly built – the parking, the way the houses are divided, the town centre. Everything you

mostly need day-to-day is there."

Embassy Springs, being developed north of Bangalore, a congested city which is best known for a being a hub for

information technology companies, is designed to have schools, hospitals, shops, entertainment facilities,

commercial space, a lakefront area and parks to cater to its residents, so that it becomes what the developer

describes as “a self-sustained city".

It is expected to become home to 5,000 families, and will offer villas and apartments, as well as plots of land on

which buyers can develop their own houses.

Developers in India are increasingly building integrated township projects in the suburbs of major cities designed

to offer homeowners more space and provide facilities and amenities within the development. This is driven by a

shortage of land and overcrowding in India’s big cities. At the same time, incomes are rising in the country, and

residents are seeking a better quality of life.

But there are a number of hurdles that accompany such projects, including securing the large areas of land

needed, and executing and managing these townships well so that they become a success.

“Integrated townships are the latest buzz in the residential real estate sector," says Hariprakash Pandey, the

senior vice president of finance at HDIL, a Mumbai developer. “Increasing spending power of home buyers, rising

aspirations have all compelled the developers to create homes that are all inclusive. Integrated townships, also

known as self-sustained townships, include all aspects of the modern-day living within the township. Residential,

commercial, retail and institutional aspects are included in a township that spreads on a vast space of land.

Availability of vast space, spacious flats, decongested walkways and quiet atmosphere are some of the highlights

of a residential township."

He says that townships are rapidly gaining popularity in India as the homebuyer looks for “an edge" over others

and a better standard of living.

“Today the new generations are always looking for a ‘lifestyle’ kind of living, in which all the amenities are there, so

that’s a reason that the townships are more attractive to people and why there are more moving into the market,"

says Shushil Raheja, the chief executive of Raheja Homes, a developer in Mumbai exploring opportunities to

develop townships.




Page 34



Lodha Group, India’s largest developer by sales, is building Palava City about 35 kilometres north-east of Mumbai,

which will spread over 4,500 acres with a planned investment of 280 billion rupees (Dh15.3bn). The project is

designed to be a small city in itself and include facilities such as a golf course and a football pitch. Although work

is still continuing on Palava, thousands of families have already moved into their homes there. Prices for

apartments start at about 4.3 million rupees.

“Across India because of the fact that urban amenities and urban liveability is not very high for various reasons –

traffic, infrastructure, regulation – people constantly seek havens or seek to improve their living standards by

moving to places that are a microcosm of having everything, but are better planned, better run and better

governed, and townships reflect that process," says Abhishek Lodha, the managing director of Lodha Group.

But he says that while some townships have already been completed in India, they have not necessarily met the

expectations of the buyers.

“The consumer didn’t want more buildings together because that doesn’t add value. What the buyer wanted was a

better standard of long-term governance, infrastructure, maintenance, facilities, social interaction with peers – all

of those things."

He explains that Palava is striving to meet these demands by making sure that apart from better standard of

facilities and properties, it also focuses on the management and governance of the city.

“When a new township is completed, you start off with great expectations because the building looks nice and it’s

new and the clubhouse is new, but three years down the line if the overall environment of running it is the same

as the city, then soon the whole thing starts diminishing."

He says that alongside Palava, there are other examples including townships by DLF in Gurgaon, a satellite city of

Delhi, and Hiranandani in Powai, outside of Mumbai, where the developers have made sure they are involved in

the long term maintenance and running of the developments.

Mr Lodha adds that well-managed townships in India “will clearly be a significant part of urban living going

forward, as Indians look for a better quality of urban living".

Godrej Properties, which is part of the Godrej Group, one of India’s biggest conglomerates, is developing an

integrated township called The Trees in Vikhroli, in the suburbs of Mumbai.

“The concept of integrated development has gained significance in recent times as a means to enhance liveability

and sustainability in our cities," says Anubhav Gupta, the chief design officer and head of CSR and sustainability at

Godrej Properties. “Integrated township developments are vibrant, mixed-use, walkable, transit-friendly and

sustainable precincts … to improve liveability for our customers."

He says that the challenges that developers planning townships face include availability of land and

infrastructure.

“In India, there are very few examples of such successful developments," says Mr Gupta. “Historically, long term

development horizons, developer appetites for mixed-use integrated developments and at times the inability of

the market to absorb infrastructure costs versus long-term capital appreciation tend to be dampers for large scale

development. Developers who have challenged the status quo and created successful integrated mixed-use

developments despite the hurdles have given hope to those who are interested in the concept."

Mr Raheja say that beyond the task of acquiring the land, sales are challenging in the current state of the property

market, with supply being higher than demand.

“The market right now is slow," he says.




Page 35



Mayur Shah, the managing director of the builder Marathon Group, says that “the major driving force behind this

is the changing habits of people and the change in their social status because of global exposure, which has

evolved the needs and requirements of an individual".

Marathon is building its Nexzone township in Panvel, in the Mumbai metropolitan region.

But he explains that building townships is a costly and laborious exercise for developers, which limits and slows

the development of these projects in India.

“Land costs are very high, often constituting the majority of the project cost for developers," says Mr Shah.

“Typically, in India, the process of acquiring necessary construction approvals for each project takes several

months. Such a long holding period leads to additional cost escalation for developers."

Mr Virwani explains that acquiring land was an enormous undertaking for Embassy Springs. It took him more that

twenty years to acquire the 300 acres of land and this involved a process of dealing with more than 460 owners.

“I started acquiring land here when I was 29 and I just turned 50 a few months back."


Back to Index




Page 36



With 30 years of Middle East experience,

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owners.

Documents

NEWS BRIEF 25 - asteco.com · DUBAI PROJECT TO BUILD TOWER 100 METRES TALLER THAN BURJ KHALIFA NOW UNDER WAY THE DUBAI VILLA SURE TO GET EVERYONE TALKING ... and Emirates Hills, along