NEWS BRIEF 49 · 2016-05-29 · The Akoya by Damac project will include a Trump-branded golf course, gated island community and spa. Trump is also building a second golf course, the

DUBAI | ABU DHABI | AL AIN | SHARJAH | JORDAN © Asteco Property Management, 2015 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 49 SUNDAY 13 December 2015


IN THE MIDDLE EAST FOR 30 YEARS Page 2



REAL ESTATE NEWS UAE

CHEAP OIL MAKES UAE AN ATTRACTIVE PLACE TO INVEST, SAYS ADFG CHIEF

DUBAI

DUBAI'S DH12 BILLION PUSH REVIVES 51 PROJECTS

DAMAC REMOVES TRUMP'S IMAGE, NAME FROM HOARDINGS DH500,000 CHEQUE TO BOOK UNIT IN NEW TOWER IN DUBAI OPERA

WORK TO COMMENCE ON MALL OF THE WORLD IN 2017 DUBAI'S ALADDIN CITY TO BE READY IN 2018 'DUBAI: FOLLOW THE MONEY' TRAIL LEADS TO SPRINGS, ARABIAN

RANCHES SEVEN TIDES INTERNATIONAL OFFERS INVESTMENT OPPORTUNITY

FOR EXCLUSIVE COLLECTION OF ANANTARA DUBAI HOTEL ROOMS AL HABTOOR ALLOCATES DH2B FOR INTERNATIONAL ACQUISITIONS

NEW LUXURY PALM JUMEIRAH PROPERTIES WITH WADI-INSPIRED DESIGN

ACCORHOTELS TAKES OVER FAIRMONT, RAFFLES OWNER FRHI

ABU DHABI

ALDAR PROJECTS ON TRACK FOR COMPLETION

RENTS VS FAMILY INCOMES IN ABU DHABI: CASE FOR AFFORDABLE HOMES

ABU DHABI TENANTS SEEK AFFORDABLE LOCATIONS AS RENTS KEEP

RISING

NORTHERN EMIRATES

RAS AL KHAIMAH ADDS ARCHAEOLOGY TO UAE’S TOURISM OFFERINGS





DUBAI'S DH12 BILLION PUSH REVIVES

51 PROJECTS

SUNDAY 13 DECEMBER 2015

Dubai has revived 51 projects worth Dh12 billion under its Tanmia initiatives since 2011, the Dubai Land

Department said in a statement exclusively sent to Emirates 24|7.

Twelve new projects, worth Dh2 billion, were activated in the last one year.

This website had reported in October 2014 that 43 projects worth Dh12 billion had been revived.

The Tanmia initiative was launched in September 2011 and was aimed at getting semi-

government/private investors on board to get projects completed.

Under the scheme, property investors were also given the right to register their stalled projects with the

department.

The Tayseer initiatives, which are guaranteed funding initiatives, were launched in June 2010 and DLD

said it saw completion of 1,110 units valued at Dh137 million.

Currently, there are eight organisation listed under the scheme.

Though names have not been disclosed, previously we reported that Emaar Properties, Wasl Properties,

ICD-Brookfield were among some of the entities listed under the initiatives.

The initiatives initially covered 40 projects across Business Bay, Dubai Marina and Jumeirah Lakes

Towers.

As to qualify under the scheme, projects must have adequate infrastructure planned or in place; escrow

trust account has to be properly managed; technical reports need to show that a minimum 60 per cent

of construction is complete and a minimum of 60 per cent of the project has been sold.

Source: Emirates 24/7

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DAMAC REMOVES TRUMP'S IMAGE,

NAME FROM HOARDINGS

FRIDAY 11 DECEMBER 2015

A Dubai real estate firm building a $6 billion golf complex with Donald Trump on Thursday stripped the

property of his name and image amid a backlash over the U.S. presidential candidate's proposal to ban

all Muslims from entering the United States.

A combination picture shows the signboard before (top) and after the removal of the Trump

International Golf Club portion at the Akoya by Damac development in Dubai December 10, 2015.

(REUTERS)

UAE developer Damac Properties had initially said it would stand by Trump, even as another of the

billionaire's Middle East partners, the Lifestyle chain of department stores, halted sales of his "Trump

Home" line on Wednesday in protest at his comments.

A spokesman for Damac, Niall McLoughlin, declined to comment on why Trump's image had been

removed from a billboard outside the project construction site, along with that of his daughter, Ivanka

Trump.

The Akoya by Damac project will include a Trump-branded golf course, gated island community and spa.

Trump is also building a second golf course, the Tiger Woods-designed Trump World Golf Club, at

another Damac property in Dubai, Akoya Oxygen.

An advertising billboard outside the Akoya by Damac development had shown Trump in a red hat

swinging a golf club against a backdrop of a lush green golf course.

An adjacent photo of Trump's daughter Ivanka, an executive vice president for his Trump Organization

firm, was also removed from the billboard.

Gold letters spelling out "Trump International Gold Club," affixed to a landscaped stone wall at the

entrance to the project site, were also removed later in the day, according to the Reuters photographer.


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DH500,000 CHEQUE TO BOOK UNIT IN

NEW TOWER IN DUBAI OPERA

THURSDAY 10 DECEMBER 2015

The launch price of apartments in The Address Residence Dubai Opera may range between Dh3,500 and

Dh4,500 per square feet (psf), Emaar Properties-listed real estate agents told Emirates 24/7.

The prices are estimated to be the highest in 2015.

“Prices will range between Dh3,500 and Dh4,500 psf, with the payment spread over seven installment

and the final 30 per cent being paid in July 2020 on handover,” one of the registered agent’s said on

conditions of anonymity.

Ozan Demir, Data & Research Manager – UAE, Reidin, told this website: “As per our expectation, pricing

will be on a higher level than Opera Grand where launch prices were between Dh3,500 and Dh 4,000 psf

as The Address brand is there.”

Property agents said investors, who wish to attend and buy unit at the VIP launch on December 12,

2015, were asked to bring a Dh500,000 cheque with them.

In August 2015, Lookup.ae, a local real estate portal, said a total of 120 new projects have been

launched in Dubai in the past 24 months, with investors being drawn to the off-plan market due to

attractive prices and payment plans.

Emaar reported a 16 per cent increase in its nine-month 2015 net profits of Dh3.048 billion, compared

to Dh2.622 billion during the same period in 2014. Revenues for period stood at Dh9.849 billion, up 25

per cent over the same period last year at Dh7.888 billion.


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WORK TO COMMENCE ON MALL OF THE

WORLD IN 2017

WEDNESDAY 09 DECEMBER 2015

Dubai Holding expects to commence work on the mega Mall of the World development in 2017 with all

the expected approvals to come by late 2016.

“It is expected that work on the implementation of the project will begin after the completion of

obtaining the necessary approvals from government agencies concerned which is expected to be

obtained by late 2016,” Ahmad bin Byat, Vice-Chairman and Managing Director of Dubai Holding, said

on Tuesday.

“Work on infrastructure will take up to two years, during which time we expect to move to Dubai Police

Academy to Academic City.”

Bin Byat emphasised that the Mall of the World is a complex, long-term and strategic project that is set

to play a significant role in positioning Dubai as a global hub for tourism, in line with the leadership’s

plans including Dubai Tourism Vision 2020.

The company said the mixed-use development will span a land area of 1.7 million square metres in the

centre of Dubai and will be built in two phases.

It is expected to take the project, which extends over 1.7 million square meters and includes almost 278

building implementation, for 10 to 15 years, and will be the implementation and financing of the project

through a strategy with a number of major investors in the region partnerships.

The recently evolved master plan is focused on providing visitors and residents with connectivity to the

surrounding city, with seven modes of transportation: a network of 33 roads, 152,500 square metres of

walkways and plazas, bicycle routes, availability of bus and shuttle services, metro and tramlines as well

as gondola rides.

As a mixed-use development, Mall of the World will have five components - Retail, Residential, Office,

Hospitality, and Entertainment – comprising 278 buildings across 3,525,000 square metres.

With the aim to establish Mall of the World as a first year-round pedestrian city in the region, the layout

and design of all its developments is especially tailored for Dubai’s climate, unique social fabric, tourism

appetite and connectivity demands. This will include shaded parks, sidewalks, temperature controlled

arcades, mall and bridges in short distances in order to provide maximum comfort to pedestrians.

Morgan Parker, Chief Operating Officer, Mall of the World, said: “We are making good progress with the

planning and thoughtful approach to the development of Mall of the World. It sits at the heart of Dubai

and will be critical to the Emirate’s economic growth.

“Our approach is to combine a human scale all-seasons lifestyle destination with an urban mixed-use

metropolitan community. Key to the project’s success will be accessibility, and we are developing a

system that will combine a mix of modern transport modes and networks. The project is currently led by

a global team of 100 experienced professionals. And we are working closely with government entities

and authorities to ensure seamless execution of the project,” he added.






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DUBAI'S ALADDIN CITY TO BE READY

IN 2018


Work on Aladdin City, an iconic project inspired by the tales of Aladdin and Sindbad on Dubai Creek, will

commence in the fourth quarter 2016 with completion slated for fourth quarter 2018, according to a

news report.

The Dubai Municipality has shortlisted three companies - Arif & Bintoak Consulting Architects and

Engineers, Incorporated Consultants and Meinhardt Group – with one of them being appointed the

design consultant this month, Zawya Projects reported.

Construction is expected to commence by fourth quarter 2016 with completion slated for fourth quarter

2018,” the website reported quoting unnamed sources. The article quoted the project cost to be

Dh1.835 billion ($500 million).

Emirates 24|7 had not received any confirmation from the Dubai Municipality on the company names

and project completion date till the time of publication.

In February 2015, we reported that construction work on Aladdin City will start in 2016.

“We plan to start work on the project next year. We have our own funds to finance the project,” Dubai

Municipality Director-General Hussain Nasser Lootah told this website.

In March 2015, we again reported that Dubai Municipality was in the process of finalising a design

consultant for Aladdin City.

The project, announced in April 2014, will have three towers, comprising commercial and hotel space,

with the towers spread over a distance of 450 metres on Dubai Creek.

It will have air-conditioned bridges with moving floor to connect the towers, driveways and parking lots.

Moreover, the shape of the bridge that will link the buildings represents the form of exotic marine life

such as dragon and snakes.

Three towers will have a built up area of 110,000 square metres with the highest tower of 34 storeys.

The other two towers will have 26 and 25 floors respectively. There will be a total parking space for 900

cars.


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'DUBAI: FOLLOW THE MONEY' TRAIL

LEADS TO SPRINGS, ARABIAN

RANCHES

MONDAY 07 DECEMBER 2015

Contrary to popular perception, transaction activity in certain upscale Dubai villa communities climbed in

the first nine months of 2015 as compared to the same period last year.

This is driven by lower property prices, according to a new report.

“A closer look into transactional activity in the villa space reveals that Springs and Arabian Ranches have

already witnessed a year-on-year increase in transactional activity,” Unitas Consultancy and Reidin.com

said in its report, ‘Dubai: Follow the Money’.

“This uptick is likely due to the fall in prices that have been witnessed in this segment and we opine that

this trend in the market will continue as prices will soften further.

The rise in transaction volumes also indicates market expectations that participants feel that the fall in

the market prices may be nearing an end,” it added.

However, a comparison of transactional activity in the high-end mature apartment space between Dubai

Marina, Downtown Dubai, Green and Jumeirah Lakes Towers during the period of 2013 and 2015 shows

transactions were down by a maximum of 46 per cent and a minimum of 30 per cent.

A comparison between Q3, 2014, and Q3, 2015, reveals an uptick in activity by an average of 8 per

cent.

“We opine as prices continue to fall transactional activity will begin to climb as investors and end-users

enter the market to capitalise on the available discounts in the market,” the report said.

A comparison of communities such as International City and Discovery Gardens between Q1-Q3, 2014,

and Q1-Q3, 2015, reveals that transactional activity has been more resilient in mid-range housing areas,

falling only 11 per cent, compared to 21 per cent decline in high-end areas.

The difference is attributed towards the over-valuation of the luxury segment due to the imbalance of

supply and demand metrics that have played out in the market.

In November 2015, Cluttons, a global property consultancy, said residential property prices declined in

five successive quarters and are likely to fall a further three to five per cent over the next 12 months

due to a faltering global economy and an increasing supply of residential units.

Villa and apartment prices declined 0.5 per cent and 0.8 per cent, respectively, in the third quarter

2015.

Prices dropped 3.5 per cent in the 12 months to September-end.

It expects 7,400 completed units to be handed over in 2016, 10,300 in 2017 and 13,600 in 2018.

HSBC Global Research said in 2014 that Dubai may see supply of 90,000 new units by 2018, but the

market will absorb – fairly easily — the new supply even if the population grows less than five per cent

per year.





A report issued by CBRE, a global property consultancy, has pointed out that property prices in Dubai

were nearly two times cheaper than London, with average prices for the top-of-the-end market here

being Dh4,771 ($1,300) per square feet (psf) compared with Dh11,010 ($3,000) psf in London.


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SEVEN TIDES INTERNATIONAL OFFERS

INVESTMENT OPPORTUNITY FOR

EXCLUSIVE COLLECTION OF ANANTARA

DUBAI HOTEL ROOMS

TUESDAY 07 DECEMBER 2015

73 hotel room units to be released on 8 December; unique opportunity for investors to buy into luxury

five-star development with guaranteed ROI of 10% per annum through to 2018

Dubai-based luxury property developer Seven Tides International will release an exclusive collection of

73 hotel rooms within its luxury Anantara Dubai The Palm Residences development to prospective

investors on 8 December 2015 at the Anantara Residences.

This brand new investment opportunity, follows the success of its Anantara Residences project, of which

42% of total units in the prestigious North and South Towers have already been snapped up, the

initiative opens up a select number of hotel rooms for sale for investment purposes.

Handled exclusively by Asteco, the appointed sales agent for the development, the rooms range in size

from 530 square feet to 650 square feet with a starting price of AED1.3 million up to AED 1.76 million.

Targeted towards the regional and international investment community, Seven Tides International is

guaranteeing a return on investment (ROI) of 10% net per annum for three years through the hotel

managed rental scheme.

Handover is scheduled for March 2016, with interested purchasers also able to take advantage of a

flexible payment plan option.

"As we have seen with the Anantara Residences project, which has been extremely well received by the

international investment community, these hotel rooms represent an equally solid investment

opportunity. Ready for rental from day one of handover, this means that investors will be able to quickly

realise ROI potential, which will be bolstered by the appeal of the hotel's luxury positioning and

exceptional facilities," said Abdulla bin Sulayem, CEO, Seven Tides International.

Blending Asian-inspired luxury with contemporary style, the Anantara Dubai The Palm Resort & Spa is

set within a stunning, landscaped location. Fronted by a private stretch of white sand beach, the

property has spectacular panoramic views of the Arabian Gulf, Atlantis Hotel, Burj Al Arab and the Dubai

Marina skyline.

A complete lifestyle experience is included with guests enjoying full access to the hotel's exclusive

facilities, which include a 4,000-square foot state-of-the-art gym, 107,600-square feet of temperature

controlled lagoon pools, six world-class dining and entertainment venues and the Anantara Spa as well

as housekeeping, at-home dining, laundry and childcare services.

The hotel room project will be revealed on Tuesday 8 December 2015 at a one-off event that will take

place at the Anantara Residences' North Tower. Interested parties will be able to view an existing hotel

room set up and talk with a member of the Asteco sales team about investment opportunities.





Source: E Media Search

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AL HABTOOR ALLOCATES DH2B FOR

INTERNATIONAL ACQUISITIONS


UAE-based Al Habtoor Group plans to invest Dh2 billion in international acquisitions in 2016, most of

which will be in hospitality, according to a statement on Thursday.

“I am always considering international growth, and looking for sound investments abroad. My focus is on

Europe and the United States,” said Khalaf Ahmad Al Habtoor, the group’s chairman, in the statement.

The value of the company’s investments and expansion initiatives in Dubai currently stand at Dh12.5

billion.

Globally, Al Habtoor owns the InterContinental Budapest Hotel, the Hilton Beirut Habtoor Grand and the

Hilton Beirut Metropolitan Palace. Last year, the group entered the US hospitality market, buying The

President Abraham Lincoln Springfield, a DoubleTree by Hilton Hotel.

Al Habtoor’s local hotel assets include the Waldorf Astoria Dubai Palm Jumeirah, the Habtoor Grand

Beach Resort and Spa, Autograph Collection, and the St. Regis Dubai at Al Habtoor City.

Next year, two other five-star hotels will open — The W Dubai — Al Habtoor City and The Westin Dubai,

Al Habtoor City.

The group’s hotels division saw revenue expand 23 per cent in the first nine months of 2015 compared

to the same period a year ago. Its international properties saw double digit revenue growth during the

same period.

The group’s total revenue in the first nine months of 2015 grew 16 per cent compared to the same

period a year earlier.

The real estate division’s revenue rose five per cent during the nine-month period compared to the same

time in 2014. The group is developing Oasis Villas, a residential complex located behind the new

Metropolitan on Shaikh Zayed Road, due for completion in early 2016.

The Al Habtoor Motors division saw revenue jump 17 per cent in the first nine months of this year. It

sold 50,693 Mitsubishi vehicles from January to September.

Source: Gulf News

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GCC CONSTRUCTION SECTOR

SENTIMENTS TREAD NEGATIVE


Sentiments in the Gulf’s construction sector are decidedly downbeat being weighed down by geo-political

tensions and the low oil price scenario. In fact, just 32 per cent of respondents in a survey expressed

optimism about the year ahead, against the 77 per cent that shared the sentiment at the same time last

year.

This is as per the annual ‘GCC Construction Survey’ conducted by the law firm of Pinsent Masons. The

majority of the companies participating in the survey were involved in projects with a value of Dh100

million and over.

Contractors expressed the highest degree of pessimism on projects in Saudi Arabia, while the UAE was

rated as offering the ‘strongest market opportunity’ for 2016. But there is also considerably favourable

opinion in favour of Qatar as offering the strongest regional opportunity, up from 14 per cent of

respondents last year to 33 per cent this year. In comparison, just 12 per cent called themselves in

favour of Saudi Arabia, and a substantial drop from the 40 per cent last year.

The UAE, meanwhile, is considered the strongest market opportunity in 2016. “It would seem that good

fundamentals in many places are being obscured by the role that politics is playing,” said Sachin Kerur,

the regional head at Pinsent Masons. “However, it is possible that as these issues lift there could be just

as a swift a return to positivity.”

“Saudi Arabia will remain a highly attractive market. Indeed there have been some positive

diversification measures discussed in the kingdom, which if implemented should enable greater private

participation in the economic development of the country.

“In Qatar, they are benefiting from a natural bounce as the World Cup edges closer.”

When it comes to specific categories where they had a role to play, the sense of despondency of

contractors was at its highest on opportunities in real estate. Only 26 per cent of those surveyed

considered it as offering the strongest commercial opportunity next year, and down steeply from the 48

per cent who thought so same time last year.

‘This may be due to the uncertainty around oversupply in places like Dubai in particular,’ said the

Pinsent Masons statement.

Across the board, ‘16 per cent said that their 2016 order books had declined by over 10 per cent, which

compares to just 4 per cent a year earlier. Asked about contract conditions, 93 per cent of businesses

said they had become less favourable during 2015, representing a 14 per cent increase on a year

earlier.

‘In addition, 95 per cent said payment periods were longer this year, and 60 per cent said they were

involved in more disputes during 2015 than had been expected before the year started.’

Another bearish sentiment that the survey found related to contractors’ possible participation in PPP

(public private partnerships).

Two-thirds said they are not currently involved, or anticipating any such involvement, in PPP projects

over the next 12 months. ‘With the fiscal environment under pressure across all the oil exporting





economies of the region, a far healthier result around PPPs was expected,’ according to a statement by

Pinsent Masons.

“These arrangements could offer a favourable solution for numerous major infrastructure and

construction developments, and there have been legislative changes made to make them more

accessible and attractive,” said Kerur. “It may well be that the private sector still believes more reform

is needed before PPPs become mainstream.”

BOX

•The opening of Iran in a post-sanctions environment does not cut it with Gulf contractors, at least for

now. Only 40 per cent of respondents were considering pursuing opportunities there. ‘This may simply

be due to a wait-and-see approach being adopted for Iran, as sanctions have not yet been officially

removed,” said the Pinsent Masons statement.

•A similar sentiment has also been expressed by contractors related to future opportunities in India. This

is ‘surprising given the historic trade links between the GCC and India, the strength of the economic

growth being seen there, and the recent promotional visit of Prime Minister Narendra Modi to the UAE’.

Source: Gulf News

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RAS AL KHAIMAH ADDS ARCHAEOLOGY

TO UAE’S TOURISM OFFERINGS

SATURDAY 12 DECEMBER 2015

The UAE’s brand of hospitality has long been viewed as a lavish one; more luxury retail brands than you

can name and all under the same roof, extravagant hotels, and neck-bendingly tall buildings in a

country that has been dubbed as the “land of superlatives”.

However, the emirate of Ras Al Khaimah is working on adding a new offering to that glamorous mix;

archaeology (7,000 years worth of archaeology).

According to Haitham Mattar, chief executive officer of Ras Al Khaimah’s Tourism Development Authority

(RAK TDA), archaeological sites are going to be a “key differentiator and one of [the emirate’s] key

offerings in the near future”.

“What we’re doing now is working really closely with the archaeology team in Ras Al Khaimah to unlock

the massive opportunity and potential that we have within Ras Al Khaimah, which is one of the richest, if

not the richest emirate, in archaeology and historical sites.

We have sites that date back 7,000 years, and we’re currently working on various restoration plans and

bringing some of these sites that are low-hanging fruit to make them tourist-ready,” he said.

In an interview with Gulf News, Mattar said that the Authority is currently looking to tap into historical

sites to allow tourists to connect with the UAE’s Arabian culture, which is very much alive in Ras Al

Khaimah and has been preserved over the years.

While some sites can be unlocked within the next 12 months, others may take around three to four

years.

“Some sites will take a little bit longer as the restoration process has to follow the same building

materials and tools that were used in the past in order to make sure that [the sites] retain their

identity,” the CEO said.

In the Middle East, archaeological sites are prominently concentrated in Egypt, Palestine, Jordan, Syria,

and Oman. Mattar believes Ras Al Khaimah can bring about a unique proposition to that mix.

“I think Jordan’s Petra and some of the other countries that have very attractive historical sites have

gone through different eras. Yes, Ras Al Khaimah has gone through 7,000 years, but it’s a different

culture — you wouldn’t find Roman ruins in this part of the world, but it’s more of the Arabian sites,” he

said.

The Authority has already started looking at potential source markets such as Europe as many

Europeans seek to visit culture and heritage sites.

Guest demographics

Tapping further into niche markets, RAK TDA is also working on leveraging the emirate’s high altitudes

to attract millennials looking for an adrenalin rush with activities such as mountain biking, extreme

hiking, water sports, and cycling.

Currently, the emirate’s primary demographic is families.





“Ras Al Khaimah is focusing more and more on families, and this is where we find ourselves more

competitive. The millennials is another segment that we can’t lose sight of because statistics show that

they travel more — at least four times a year — and are attracted by adventurous opportunities and

value for money accommodation, which Ras Al Khaimah is well-positioned for,” he said.

Geographically speaking, the UAE represents Ras Al Khaimah’s largest guest market — accounting for 49

per cent of visitors to the emirate. Visitors from the overall GCC region recorded a 51 per cent increase

in arrivals — 29 per cent of whom came from Saudi Arabia.

Across the region’s borders, the emirate’s biggest source markets are Germany, the UK, Russia, and

India.

Recovering

Asked about the impact of a depreciating Russian rouble on inbound tourism, Mattar said the fall in

currency did take a toll on Ras Al Khaimah.

“In the beginning of the year up until the second quarter, we saw — and this is similar to other emirates

— a drop of about 50 per cent from Russia. However, the [third quarter] was tremendous where we saw

a four per cent growth from the Russian market, so it’s a signal that this market is now recovering.

The four per cent growth is a great indicator for us that this is a resilient market … and we’re cautiously

optimistic on that market starting to come back slowly but surely,” he said.

TDA is currently working on tapping other international guest markets such as Turkey, Scandinavia,

Poland, and China where the Authority sees “tremendous appetite”.

Source: Gulf News

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ALDAR PROJECTS ON TRACK FOR

COMPLETION


Aldar Properties, the Abu Dhabi-based developer, said on Wednesday it was making strong progress

across its residential development projects.

Three of its projects, Hadeel, Ansam, and Merief are on track for completion during 2017, while another

project called Meera will be delivered to the market in 2018. Meanwhile, Merief, a community of

residential plots for Emiratis, will also be completed in 2017.

Aldar said that a flight to quality among buyers was driving demand.

Source: Gulf News

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For the GCC region, about 32 per cent of the respondents were optimistic in their outlook for next year,

as opposed to 77 per cent who were asked the same question a year ago.

Among the respondents, 16 per cent said that their order books for 2016 dropped by 10 per cent versus

4 per cent a year ago.

About 93 per cent of the businesses felt that contracts had become less favourable this year – showing a

14 per cent rise over a year ago.

The survey also showed that 60 per cent of those polled were involved in more disputes in 2015 than

they had expected before the start of the year. Payment periods are also stretching this year, according

to 95 per cent of the survey participants.

“This is the sharpest annual decline in optimism our survey has seen, and there is no doubt that

economic and geopolitical concerns are playing heavily on people’s minds,” said Sachin Kerur, the

regional head at Pinsent Masons. “It would seem that good fundamentals in many places are being

obscured by the role that politics is playing. However, it is possible that as these issues lift there could

be just as a swift a return to positivity,” he added.

In terms of GCC construction opportunities outside the Arabian Gulf region, Mr Kerur said that most of

construction industry in the region is cautious about seeking opportunities in Iran and India.

“However, India is one of the few countries in the world to show strong economic growth and businesses

located in the Gulf are ideally suited to access the country. I would encourage them to be more

proactive on pursuing commercial opportunities in India, providing the right level of due diligence is

conducted,” he said.

Source: The National

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ABU DHABI TENANTS SEEK

AFFORDABLE LOCATIONS AS RENTS

KEEP RISING

TUESDAY 08 DECEMBER 2015

Tenants in Abu Dhabi are rushing to relocate to more affordable locations as the cost of living in the

capital continues to rise.

Rents for three-bedroom villas in Hydra Village rose by 32 per cent to Dh125,000 from Dh95,000 a year

between January and September, as expatriate families hunted for cheaper deals.

That was the highest rise reported in the city.

Overall average rents in Hydra Village stood at an average of Dh117,500 – an increase of 25.9 per cent

on the same period a year earlier. The development of 448 town houses outside the city at Shahama on

the Abu Dhabi to Dubai highway is considered to be one of the more reasonably priced new-build

locations in the capital.

This compares with an average increase over the period for the emirate as a whole of just 2.5 per cent,

Cluttons said.

Cluttons found that rents in most of the established neighbourhoods of Abu Dhabi registered little

increase over the past year.

Rents at Saadiyat Villas, one of Abu Dhabi’s most exclusive addresses, increased by just 2.5 per cent

over the same period, rising to Dh585,000 in the third quarter of 2015 from Dh570,000 a year earlier.

At Raha Beach too, already steep rents rose from an average of Dh179,167 in the third quarter of 2014

to Dh181,667 this year, an increase of 1.4 per cent.

And at Al Reef Downtown, once considered a cheaper option for families, average rents increased 0.6

per cent to Dh93,333 from Dh92,778.

“The severity of shortage of stock in the rental market has driven households out to peripheral locations

in search of what they perceive to be better value for money,” said Faisal Durrani, the head of research

at Cluttons.

Cluttons said that high rents in the capital and new mortgage caps were preventing many expatriates

from buying homes in Abu Dhabi.

“An average expat household aspiring to purchase a home in Abu Dhabi has to contend with an average

annual rent of Dh204,000 against an average household income of Dh199,000,” Mr Durrani added.

According to a report in September by the property broker CBRE, average monthly rents in Abu Dhabi

are the second-most expensive in the world, exceeded only by those in London.

In October, the Abu Dhabi Urban Planning Council (UPC) director general Falah Al Ahbabi told The

National that new affordable housing requirements could be introduced before the year-end.

The new policy will place targets for developers to achieve 20 per cent of affordable homes within new

housing schemes Mr Al Ahbabi said.





However, the UPC has yet to identify what it classifies as “affordable housing” and who would be eligible

to live in it. It has also yet to say whether any rent controls will be established.

Cluttons said that the current lack of affordable housing in Abu Dhabi is providing a major opportunity

for developers.

“Abu Dhabi is clearly short of affordable neighbourhoods,” said Edward Carnegy, the head of Cluttons

Abu Dhabi.

“This issue of affordability has been building for some time, initially following the introduction of the

Federal Mortgage cap and doubling of property registration fees,” he added. “These had the desired

effect of cooling the market, but now many people are forced to pay premium rents, limiting their ability

to become owner-occupiers in the long term.

“This presents a major opportunity for developers to deliver housing that is ‘genuinely affordable’, while

still of a high quality, with the potential to offer flexible access to home ownership through models such

as rent-to-own.”


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CHEAP OIL MAKES UAE AN ATTRACTIVE

PLACE TO INVEST, SAYS ADFG CHIEF


Abu Dhabi Financial Group is targeting a series of investments in the UAE, according to Jassim Alseddiqi,

the investment firm’s chief executive, as lower oil prices make investments financially attractive.

“The pricing today for the UAE markets, whether it’s real estate, private equity or public equities, is

extremely competitive and extremely attractive compared to any other jurisdiction in the world,” Mr

Alseddiqi told reporters on the sidelines of a conference organised by the business school Insead in Abu

Dhabi.

“Our investment strategy has always been opportunistic and geographically agnostic.

“The opportunity today is here in the UAE, that’s why we’re looking here now.”

The firm, which manages US$3.2 billion of assets, is pursuing investments in the real estate and

financial services sectors, with announcements expected within 12 months, Mr Alseddiqi said.

ADFG’s real estate investments include London’s New Scotland Yard and 1 Palace Street, a luxury

residential complex next to Buckingham Palace.

Much of the attractiveness of UAE assets is thanks to the new economic realities of the past 18 months,

in the wake of falling oil revenues, Mr Alseddiqi said.

The company announced last month that it was considering increasing its stake in the Dubai-based

shipping firm Gulf Navigation to 50 per cent “if the price was right”, after acquiring about 6 per cent of

the company earlier in the year.

Mr Alseddiqi declined to comment on the status of negotiations with the shipper, whose shares ended

the day up 2.4 per cent at 49.5 fils.

ADFG is in discussions with the UAE’s Securities and Commodities Authority to become a market maker

institution on the Abu Dhabi Securities Exchange.

National Bank of Abu Dhabi is the sole market maker for the ADX, having begun operations in February.

“We’re in the process, it takes time,” said Mr Alseddiqi, declining to comment on when the licensing

process is expected to be completed.


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ACCORHOTELS TAKES OVER

FAIRMONT, RAFFLES OWNER FRHI


AccorHotels has cemented its grip on the UAE’s luxury hotel segment after it acquired FRHI Holdings,

the owner of the Fairmont, Raffles and Swissôtel chains.

FRHI’s investors include the Qatar Investment Authority, Saudi Arabian Prince Alwaleed bin Talal’s

Kingdom Holding and Canada’s Oxford Properties.

The US$2.9 billion deal gives the Paris-listed Accor the right to operate 17 luxury hotels in Africa and the

Middle East, including the pyramid-shaped 252-room Raffles Dubai at Wafi City, the 394-room Fairmont

Dubai on Sheikh Zayed Road, the 381-room Fairmont The Palm on the Palm Jumeirah and the 369-room

Fairmont Bab Al Bahr in Abu Dhabi.

It has also acquired an operating lease on the under-construction 280-room Swissotel Dubai, which is

being developed by Aabar in the Jadaf district and is expected to open in 2018.

Globally, Toronto-based FRHI operates hotels including Raffles Singapore, The Savoy in London,

Shanghai’s Fairmont Peace Hotel and The Plaza Hotel in New York. It has 155 hotels and resorts – of

which 40 are under development – and more than 56,000 rooms.

The deal comes as major hotel companies are chasing scale, and occupancy in luxury hotels. Last month

Marriott International bought Starwood Hotels and Resorts in a $12.2bn deal.

It also comes as Dubai’s luxury hotels are looking for all the extra marketing help they can get as room

rates and occupancy levels stagnate.

Accor is known for its luxury hotel brands Sofitel, Pullman, Grand Mercure; midscale brands Novotel,

Mercure and Adagio; and economy brands ibis, ibis Styles, ibis Budget, Adagio Access and hotelF1.

Accor will add the new properties to its existing portfolio of 76 hotels in the Middle East and 49 hotels

under development.

These include the 543-room room Sofitel Dubai The Palm resort and spa, along with six mid-range

hotels in Dubai alone.

Accor said that the acquisition would position the company further into the lucrative luxury sector, which

has grown faster than the overall market in recent years and where margins are higher.

“This is an outstanding opportunity to add three prestigious brands – Fairmont, Raffles and Swissôtel –

to our portfolio, and a great step forward for AccorHotels,” said Sébastien Bazin, the chairman and chief

executive of AccorHotels. “It offers us robust and global leadership in luxury hotels, a key segment in

terms of geographic reach, growth potential and profitability, for long-term value creation.”

Under the deal, Accor will pay QIA and Kingdom Holding US$840 million in cash and issue them 46.7

million Accor shares, leaving QIA with a 10.5 per cent stake in Accor and Kingdom Holding with a 5.8

per cent holding.

As part of the transaction, QIA will have two seats on Accor’s board, while Kingdom Holding will take

another.





With its new portfolio including nearly 500 luxury and upscale properties, Accor said that it aims to

generate about €65m (Dh261m) in revenue and cost synergies around the world because of the deal

thanks to the combination of brands, the maximisation of hotel earnings, the increased efficiency of

marketing and sales costs.

“This deal is likely to mean more visibility for the UAE’s top hotels,” said Filippo Sona, head of hotels and

hospitality for the Mena region at Colliers International. “There are fewer than 20 Raffles hotels

worldwide and only perhaps 50 or 60 Fairmonts. After the acquisition, these hotels will be part of a

much larger network, which provides a platform from which they can attract guests from all around the

world in the luxury segment.”

The research company STR Global in September predicted that hotel room rates in Dubai would stabilise

next year and remain steady for the next three years as tourists become more budget-conscious and

new supply enters the market.

Since 2006 the supply of hotels has increased – and so has demand.

In 2020, Dubai is expected to have 107,905 hotel rooms, up from 29,041 rooms in 2000, according to

STR Global.

But economic slowdowns in Europe, China and other emerging markets are expected to curb the

spending power of tourists.

The average daily room rate in Dubai last year was $241, the third-highest in the world after Paris and

New York, with an occupancy rate of 78.5 per cent.


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NEW LUXURY PALM JUMEIRAH

PROPERTIES WITH WADI-INSPIRED

DESIGN


If the beach life is for you, then living on what is claimed will be Dubai’s longest private residential

beachfront could be the ideal investment.

The 475-metre-long stretch of white sand is a feature of The Alef Residences, an under-construction

luxury apartment development on the West Crescent of Palm Jumeirah.

Sales of the 104 apartments, split over eight clusters, started last month. According to the developers,

34 per cent of the project – a joint venture between Saudi Arabia’s Al Sharq Group and Qatar’s Al Mana

Global – is already complete.

The apartments are being built alongside the W Hotel Palm Jumeirah on the one million square foot site

at an overall cost of Dh2 billion, with more than half of the site allocated to the residences.

The homes, designed by RMJM Architects, are being built in a “wadi” style, facing back-to-back to offer a

cool central space.

The two buildings have been broken up into eight “mansions”, or clusters. Each mansion contains its

own dedicated parking, lobbies and lift entrance with just two apartments per floor. On the higher floors,

there will be three simplex and two duplex apartments, all with their own private access.

The apartments range in size from 4,800 sq ft to 15,000 sq ft and in price from Dh12 million to Dh50m.

A three-bedroom apartment in Mansion 5, for example, offers 6,246 sq ft of interior space and a 1,054

sq ft terrace, and is on the market for Dh20m. The external terrace in this fifth-floor unit offers views

looking back over the Palm and the skyline of Dubai beyond. This leads inside to a large open living and

dining area as well as a gourmet kitchen – and there is also a separate back-of-house kitchen.

All three bedrooms have en suite bathrooms and the two larger rooms have walk-in wardrobes. There is

also a powder room, a study and a home cinema.

The wider development features the Club 104, an exclusive members’ club for residents and guests with

a restaurant, gym, lounges, a spa, meeting rooms, kids’ club and a cinema. The residences are being

built by the contractor Al Futtaim Carillion and will be completed by mid-2017.

Q&A

Matthew Bate, Al Mana’s general manager of real estate and investment, and Mahmoud Amer of Al

Sharq Investment tell Michael Fahy more about Palm Jumeirah’s latest luxury living space:

Explain the idea behind The Alef Residences

MA: The Alef is the first letter of the Arabic alphabet. We did some research on the Alef and its origin. It

starts with the hieroglyph of an ox, which shows virility and strength. It then goes into the Phoenician

Alef and then the Arabic. It’s a brand that’s very deeply rooted into the culture of this region, going back

to the civilisations that have existed here for thousands of years. This is the first product of the brand,

but not the last. The shareholders themselves will own units in this building.





There are lots of other luxury apartments being built at Palm Jumeirah. What’s different about this?

MB: This is an extremely unique product that we believe will fill a market niche, which is extremely high-

end homes in an apartment-style living arrangement. Having a plot of over 1 million sq ft on the Palm,

you couldn’t ask for a better backdrop and a better location.

So who are you targeting it at? The very wealthy, clearly?

MB: I think it’s the client or the customer who really understands quality, who knows what they want

and who deserves something unique. It will also be for families. There’s an allocated kids’ zone at Club

104, the nice kids’ area outside next to the tennis courts. There are cabanas and a sports area so they

can jump in a canoe or on a paddleboard. We have a huge amount of land allocated to the residences.

To have that space – you don’t get that typically with apartment-style living


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RENTS VS FAMILY INCOMES IN ABU

DHABI: CASE FOR AFFORDABLE HOMES


Lack of ‘affordable’ residential units in Abu Dhabi are putting constraints on household budgets, as rents

marginally surpass income of families, forcing them to move to peripheral locations.

In its Abu Dhabi 2015/16 Winter Property Market Snapshot, Cluttons, a real estate consultancy, said in

order to truly tackle the problem of affordability, it’s important to run the numbers with an average

expat household aspiring to purchase a home in the UAE capital has to pay an average annual rent of

Dh204,000 against an average household income of Dh199,000. This points to the need of affordable

housing, as house prices have soared 34 per cent since 2010.

“Abu Dhabi is clearly short of affordable neighbourhoods. This issue of affordability has been building for

some time, initially following the introduction of the Federal Mortgage cap and doubling of property

registration fees,” said Edward Carnegy, head of Cluttons Abu Dhabi.


Back to Index





With 30 years of Middle East experience, Asteco’s Valuation & Advisory Services

team brings together a group of the Gulf’s leading real estate experts.

Asteco’s network of offices in Abu Dhabi, Al Ain,

Dubai, Northern Emirates, Qatar, Jordan and the Kingdom of Saudi Arabia not only provides a deep understanding of the local markets but also enables us to undertake large instructions where we can quickly apply resources to meet clients requirements.

Our breadth of experience across all the main property sectors is underpinned by our sales, leasing

and investment teams transacting in the market and a wealth of research that supports our decision making.

John Allen BSc MRICS

Director, Valuation & Advisory

+971 4 403 7777

[email protected]

Julia Knibbs MSc

Manager – Research and Consultancy - UAE

+971 4 403 7789

[email protected]

VALUATION & ADVISORY

Our professional advisory services are conducted

by suitably qualified personnel all of whom have

had extensive real estate experience within the

Middle East and internationally.

Our valuations are carried out in accordance with

the Royal Institution of Chartered Surveyors

(RICS) and International Valuation Standards

(IVS) and are undertaken by appropriately

qualified valuers with extensive local experience.

The Professional Services Asteco conducts

throughout the region include:

• Consultancy and Advisory Services

• Market Research

• Valuation Services

SALES

Asteco has established a large regional property

sales division with representatives based in UAE,

Saudi Arabia, Qatar and Jordan.

Our sales teams have extensive experience in the

negotiation and sale of a variety of assets.

LEASING

Asteco has been instrumental in the leasing of

many high-profile developments across the GCC.

ASSET MANAGEMENT

Asteco provides comprehensive asset

management services to all property owners,

whether a single unit (IPM) or a regional mixed

use portfolio. Our focus is on maximising value

for our Clients.

OWNER ASSOCIATION

Asteco has the experience, systems, procedures

and manuals in place to provide streamlined

comprehensive Association Management and

Consultancy Services to residential, commercial

and mixed use communities throughout the GCC

Region.

SALES MANAGEMENT

Our Sales Management services are

comprehensive and encompass everything

required for the successful completion and

handover of units to individual unit owners.





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