4 www.cityscape-magazine.com
The official show daily
DAY
6-9 October 2008
10
THE LIQUID REALITY
Within the halls of Cityscape Dubai, the shadows of the global market meltdown have been illuminated by a regionally upbeat industry vibe and the liquid position of regional investors and developers is setting the tone for a positive future
Contents Cityscape: welcome
9
Wrap-up of the 2008 Cityscape Dubai conference and exhibition 10
Update: exhibitor news Latest updates from the show floor and key emerging markets
17
Line-up: conference programme
18
Line-up: speaker profiles
Analysis and debate of the industry’s hot topics
As purse strings tighten in markets worldwide, Cityscape Dubai has seen one project announced after another with overwhelming investor interest. One resounding question as the region bucks an almost worldwide trend has been, “What is the liquid reality that sets the Gulf apart?” And we posed it to the region’s
Leading industry experts share their market insight 24
Peaking interest: Regional real estate yet to find its limits
Review: day three Round-up of action from the conference sessions and show floor
35
leading real estate figures on the last day of Cityscape so we could share their unique market insight and experience over the four-day event. “It has been the most positive Cityscape show for us to date,” said Mohammed Bin Zaal, COO, Al Barari, citing recent sales figures as proof of the region’s stability.
Focus: industry report Mazaya Real Estate Index activity report on Kuwait
37
Focus: industry report Mazaya Real Estate Index activity report on Qatar
38
Focus: Oxford Business Group Yemen’s investment and development focus
40
Overview: Kuwait and Oman Destination market overview
46
Event: cocktail party Review of the Cityscape Dubai Cocktail Party
Best ever attendance With 41,000 attendees in the first two days of the event and a further 10,000 by 2pm on day three, Cityscape is expected to achieve well in excess of the 60,000 visitors originally anticipated over the course of the four-day show. The final day of the 2008 event will come to a close at 8pm tonight, one hour later than originally scheduled, due to ‘phenomenal public demand’ and both the organisers and the exhibitors eagerly await the final record-breaking tally.
Nakheel Harbour & Tower
Show averaging over 20,000 visitors a day
US$817 billion Dubai Pearl deal for DIFC Investments First for recently launched real estate fund DUBAI – DIFC Investments, the investment arm of the Dubai International Financial Centre (DIFC), announced yesterday that it has invested over US$817 million in the Dubai Pearl project. The investment was made through DIFC Investments’ real estate fund, which was launched recently to tap into the booming property sector in Dubai and the UAE. The fund
seeks to create a portfolio of quality real estate acquisitions that will yield positive return on equity as the property sector continues to grow. Dubai Pearl is a US$4.08 billion mixed-use luxury project located adjacent to TECOM Investments’ knowledge clusters. It is being developed by Pearl Dubai, a consortium of investors led by Al Fahim Group. The deal takes the
One of the unique aspects of the Gulf is that many investors do not rely to the same extent on third-party finance to make purchases, with many developers quoting an extremely low percentage of sales being financed through banks and mortgage providers. “The rich will stay rich, whether it’s here or in the US. The extremely wealthy are still buying multi-million dollar homes. We are lucky enough to be in this high-end niche market,” said Bin Zaal. Shafqat Malik, CFO, ALDAR Properties, recognised prevailing international market trends while also warning of the sensationalist nature of recent reports. “The liquidity crunch is currently a global phenomenon and is having an effect everywhere, at least psychologically. For the first time, most of the central banks have just cut interest rates, and hopefully the credit crisis will ease over the coming weeks. “At the moment the markets are very confused, and any positive news is being seen as a sign of desperation. In my view it should be a period where there is no news so the market can digest things for itself and take a rational stance. “This week, with the Cityscape showcase, I strongly believe that the UAE fundamentals are very strong and nothing has changed with regard to the country’s expansion plans.
“The medium to longterm view for the UAE is very positive, and once this crisis time has been overcome, people will realise that there is no issue at all here. The cycle of uncertainty must pass.” Mohammed Nimer, CEO of the MAG Group, focused on the importance of the government’s role and the impact of the situation in established markets at individual investor level. “Banks and financiers are major players in the development circle and what is happening in the US and Europe will affect all its components – from government to master developer, right down to the investor. For MAG Group, we are self-financing so we don’t have issues, but at investor level, the financing challenge in turn affects us.” Nimer says that there is no downturn in interest and the volume of visitors to Cityscape Dubai proves that. “Around 40 percent of visitors are here to check out the impact of what is happening globally, but as many as 60 percent are really eager to see what’s new in Dubai and regionally. “Dubai has incredible momentum – just look at the timing of the Meraas and Nakheel announcements. Any investment is a risk, but there is less risk here than anywhere else in the world. You can’t get any better capital gain than here in Dubai.” Continues on page 10
total sales at the luxury Dubai Pearl development to more than US$2.7 billion. Dr. Omar bin Suleiman, the governor of DIFC and chairman of DIFC Investments, said: “This acquisition marks our first major investment into Dubai’s real estate sector, which continues to demonstrate tremendous potential for investors and homeowners.” Abdul Majed Al Fahim, chairman of Pearl Dubai, said: “We are delighted to announce DIFC Investments has acquired a significant portion of the prestigious Dubai Pearl development.
“The interest shown by the recently launched fund of DIFC Investments also justifies our commitment to creating world class developments as the region’s leading master developers of elite projects.” Dubai Pearl is expected to be completed by December 2011. The premier business and lifestyle destination aims to create climate-conditioned pedestrian walkways, conveying a street café ambience with international restaurants, boutiques and urban landscaping, and it is the only development overlooking Palm Jumeirah. Stand ZE60
welcome SHOW
WELCOME TO CITYSCAPE DUBAI 2008 Frederique Maurell
Welcome to the fourth and final day of this year’s Cityscape Dubai conference and exhibition. Now in its seventh year, Cityscape Dubai has grown to become the largest B2B real estate investment and development event in the world. The flagship event of our global Cityscape portfolio has gone from strength to strength over the past few years, capitalising on the fast-paced development and meteoric rise of the real estate market across the region. Demand for exhibition space at the 75,000-square-metre Dubai International Exhibition Centre was sold out several months ago, cementing the demand and credibility of the event. This is a tremendous accolade for the brand and is a clear indication of the intention and success of the real estate market in the region. The span of Cityscape Dubai has long crossed over the borders of the Middle East region with a growing attendance from the global real estate community, from developers to engineers to consultants, as well as avantgarde international architects. The calendar of special events has also played a vital role in strengthening the overall success of Cityscape Dubai. The Cityscape Golf Classic, Cityscape Architectural Awards, Cultural Night and Cityscape Cocktail Party, have gained remarkable recognition in the industry as must-attend events. The five conferences, seminars and workshops that
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are running alongside the exhibition have already brought to light an in-depth appraisal of today’s challenges. As the world economy is in commotion, all eyes turn to Cityscape Dubai to check the pulse of the region. This year, we are pleased to be able to welcome high-profile industry experts and personalities to share with the audience their insightful knowledge; to examine today’s challenges; and to identify new investment opportunities. As of yesterday, this year’s showcase had over 60,000 real estate professionals from more than 120 countries across the globe coming to be part of the excitement and see firsthand, the depth and breadth of development across the globe. The innovative trends of the market have been reflected in the diversity and quality of the projects on display throughout the exhibition. It is fair to say that the success of the Cityscape brand has gone hand-in-hand with the tremendous growth and success of real estate across Dubai and the UAE. Dubai has taken advantage of its location and time zone, and is positioning itself as a valid financial hub located between the major markets of London and Tokyo. In this market, the overwhelming majority of new residential supply is now focused on the high-income segment, with primary tier developers continuing to enjoy greater occupancy than secondary tier developments in select residential areas.
Despite the tremendous amount of new supply coming online, there is reassurance for developers as the government has a number of levers at its disposal (such as legislating against co-habiting tenants) in order to catalyse demand, and these are coming to the fore. In the office market, the limited delivery of new office accommodation has resulted in a persistent under supply, precipitating doubledigit growth of rental rates year-on-year, supported by vacancy rates of less than two percent across the market. The clustering of free zones such as Dubai Media and Internet City and the International Media Production Zone, continue to attract blue-chip tenants and demand is also strong for office space on Dubai’s main commercial arteries. On the retail front, over 70 percent of the forthcoming shopping mall supply, between 2008 and 2010, is already pre-let, which would suggest that retailers remain bullish on the city’s growth prospects. The hospitality sector also continues to perform well, with the total number of tourists last year at around seven million. Occupancy levels across the market were registered at 84.4 percent in 2007, rising to 88.7 percent within the five-star hotel segment. All of these investment and development opportunities are showcased at this week’s event. Investors in the region will find the show invaluable in terms of gleaning industry
intelligence, and seasoned attendees will return to discuss the future of the real estate industry with like-minded peers. I hope you had a great Cityscape Dubai experience, and we look forward to welcoming you to Cityscape Dubai 2009. Frederique Maurell Exhibition Director, Cityscape Dubai
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Dubai 2008 $ Cityscape official show daily
$9
NEWS update
Jumeira Gardens
CITYSCAPE SOUNDBITE...
Sherwoods launch affordable apartments
ABID JUNAID, Executive Director, ETA Star
Buyers in spiralling rent ladder targeted
What do you think were this year’s hot topics? New legal framework and laws in real estate were the most important topics this year, benefiting the whole real estate industry as this will help to build end users confidence and provide security to all stakeholders
Dubai expansion continues Overall growth is 16 percent in Q2 DUBAI – The quarterly overall growth rate in Dubai slowed from 42 percent in the first quarter of 2008 to 16 percent in the second quarter, according to Colliers International House Price Index for Dubai Q2. However the global real estate consultancy said that the annual overall growth between Q2 2007 and Q2 2008 was 76 percent – representing growth from 117 to 206 points on the underlying index. The index shows that prices increased across all market sectors covered, which include apartments, villas and townhouses. The report also reveals that demand for residential property mortgages, an indicator of the demand for property, was very strong and increased significantly from the previous quarter. This increase in demand caused prices to rise as supply remained short. Ian Albert, Colliers regional director, said: “While our research shows that overall growth has slowed from 42 percent in the first quarter of 2008 to 16 percent in the second quarter of 2008, it is worth noting that overall price growth still occurred across all residential sectors. “If you consider the performance of other global cities over the same period, Dubai offered attractive returns comparative to these markets. Looking forward to future quarters we expect a return to fundamentals as the demand-supply dynamic moves towards equilibrium.” The HPI report also highlights factors that Colliers believes have contributed to the increase in prices during this period. They include projects at or near handover appear to enjoy a spike in prices; increasing construction costs; rising inflation; increasing residential property rents; increased availability of mortgages; increasing residential rental rates making ownership more appealing and cost-effective for residents. Stand 7E40
CITYSCAPE SOUNDBITE...
HUSSEIN FAKIH CEO, MINA AL FAJER
What did you hope to achieve at Cityscape Dubai? Investors from Dubai make up a large percentage of investors in the real estate sector in the UAE. And they believe in investing in potential markets like Fujairah, where new opportunities are now emerging with the impressive progress of Mina Al Fajer. Cityscape Dubai is vital for us because it allows us to engage local and international investors. As Mina Al Fajer resort is expected to jumpstart the growth of tourism and real estate in Fujairah, we are happy to have this singular chance to meet them and share with them the investment opportunities we offer
10 $ Cityscape official show daily $ Dubai 2008
Continued from cover Saeed Ahmed Saeed, CEO of Dubai’s Limitless commented on the cyclical nature of the global markets. “Markets go up and go down, and we cannot ignore the current climate. What is important is long-term performance. “Limitless is not in real estate for the short-term, and we remain optimistic about the long-term outlook for the sector. A significant downturn will affect all industry players to a degree in the short-term, but Limitless is well-funded and has a strong, global portfolio of developments offering excellent geographical diversity and a favourable risk profile. “Price adjustments are necessary to maintain sustainability, but as our projects are uniquely positioned, we believe any effect will be minimal. In addition, our business model enables us to effectively manage risk and react to market challenges.” Mahmood Al Mahmood, CEO, Al Qudra Real Estate stated that the situation is very much ‘business as usual’. “As far as we are concerned there is plenty of liquidity in the market. The banks that Al Qudra is dealing with are giving out loans as usual, and nothing has changed.” Ali Kolaghassi, vice chairman and CEO of Jordan’s Saraya Holdings commented: “At an individual level the liquidity is there, but people are sitting and waiting for the bust to recover to realise what the next step will be. “The GCC, and MENA region as a whole, is not immune to what’s happening in the world, but I believe that with the liquidity available though local governments, if necessary, they would intervene – like some have – to inject more money, so that the banks, in the next few months, start lending like before. “In all cases, banks are going to be more selective in their lending policies, whether it’s to institutions, developers or to home buyers, and the available easy credit that there was, is not going to be there anymore. But only qualified investors will be able to get mortgages. “From a developer perspective, only companies with a solid financial statement will be able to borrow. But we mustn’t forget that our part of the world is a little different from a demographic perspective. We have a young population, and we will continue to have requirements for housing, office space, retail etc. Saudi Arabia is a good example of this. “So, in summary, the global situation will have an impact in the shortterm, but I think that our part of the world will survive this problem.” Yusuf Fakhruddin, CEO of Dubai-based Fakhruddin Properties added: “Here, especially in Dubai, it is a cash market. “What we see is that there are a lot of UK investors coming here, they have cash lying around and have to invest it somewhere. Right now, the Middle East is a sure bet. “In terms of financing our development, we are more into calculated risk taking rather than just betting on the sentiment of the market, and we keep a big buffer. “There is also a lot of interest in this market and I don’t see a slowdown at the moment. The issue now will be for developers who don’t have a good track record. When the market is up then you can just put money with anyone, so long as the pluses and minuses add up. But in this market environment, everyone wants to put their money with the right developers and this has narrowed the market.” For a different perspective, Farid Ben Driss, chief development officer, Qatari Diar, summed up the Cityscape vibe. “We thought this year’s event would be quieter, but we were very surprised and very excited by the number of enquiries and interest from various investors. We are seeing a very wide spread of enquiries this year, from Fiji and Cambodia to Oman and the Dominican Republic. “Cityscape has become the most important real estate exhibition in the world, and we feel very bullish. It would not be unfair to say that there are some questions in the minds of many people in the region, but Qatari Diar is cognisant of this. Because we are covering a very specific segment of the market, nobody is forgetting to ask the right questions.”
DUBAI – Sherwoods has launched an affordable residential complex with prices starting from around US$176,000. The property consultant said that the Santaville Apartments are targeted at those who are looking to get off the rental ladder and buy their own properties. Santaville Apartments, developed by AC Holdings, offers 111 units of studios, one-bedroom apartments and duplexes, on top of a wide range of leisure and recreational facilities. Iseeb Rehman, managing director of Sherwoods Independent Property Consultants, said: “At the moment, most of the really affordable residential properties are in Ajman, Ras Al Khaimah and Sharjah, but the distance and the stress of daily travel has discouraged many people from moving further north. Located in Jumeirah Village District 11 at the junction of Emirates Road and Al Barsha Road, the Santaville Apartments complex sits within a prestigious neighbourhood of high-profile developments such as the Jumeirah Islands Villa and Emirates Hills. Stand 6E01
Ain Al Fayda showcase for Al Qudra Launch of prime Al Ain project a Cityscape success DUBAI – Abu Dhabi-based Al Qudra Real Estate, Silver sponsor of this year’s event, launched its Ain Al Fayda project at Cityscape Dubai this week to an enthusiastic response. Designed by architectural firm Noor, the same company behind the new Atlantis hotel on the Palm Jumeirah, Ain Al Fayda embraces the Al qudra philosophy of ‘work-live-play’. The stand also attracted interest from visitors eager to try out its new interactive ‘touch-less screen’ presentation, with full details of the company’s project portfolio including Desert Star, Manarah Bay and Al Nasseem, as well as international projects in Algeria, Morocco, Belarus, and Syria. “The projects we are displaying at Cityscape Dubai 2008 reflect our commitment in fostering the property boom in the UAE and developing regions,” said Claus Peter Rees, acting CEO. “We have one of the busiest stands at the show,” commented Paul Gebara, marketing director, Al Qudra Real Estate. Al Qudra is not affected by the global market downturn, according to Gebara. “Our projects are purely targeted at the UAE national population, so we are seeing continued strong interest,” he said. “We are thrilled at the interest that Ain Al Fayda experienced during the first day of the event, and would like to invite all UAE nationals interested in investing in this unique development to quickly reserve their share in the development,” added Pierre Moerland, vice president of sales and marketing. “Ain Al Fayda is a mixed-use community and modern-day oasis which will feature healthcare, tourism, residential and retail components. The development is poised to become a well-being destination, the first of its kind in the region. Lodged at the base of Jebel Hafeet in Al Ain amidst abundant foliage and healing hot springs, Ain Al Fayda will comprise two, three, and four-bedroom houses designed for both nature-lovers and modern city dwellers,” he added. “We only work with the best in the world – leading consultants and architects who assist us in achieving our objectives,” concluded Rees. Stand ZT20
update NEWS
AL BARARI UNVEILS PHASE TWO Sustainable luxury development on show
DUBAI – Luxury developer Al Barari has unveiled phase two of its US$6.4 billion project at Cityscape Dubai with the intention of whetting the market’s appetite ahead of its official release for sale early next year. Commenting on the announcement, Mohammad Bin Zaal, COO, said: “In phase two we have set about developing a community rooted in tranquillity and harmony which further demonstrates our commitment to value creation not just through bricks and mortar, but more importantly through intrinsic, tangible experiences.” Spread over 1.3 million square metres and located in the Nad Al Sheba area, the multi-billion dollar development has a strong community focus and aims to marry environmental sustainability with luxury living. According to Bin Zaal, initial interest in phase two has exceeded expectations, as he explained: “I was expecting this Cityscape to be a bit slower than the previous ones, but in fact it has been the most successful one so far. “We have seen a shift in demographics with a lot more people coming from the western world – Europe and the US, and there’s a need for people to look at various investment options. Dubai is obviously a hotspot and people just want to know what’s going on here. It’s been an excellent showcase for us. “You always have to showcase. For us, it’s such an amazing product and to be able to have this medium, to actually show people what it is all about, is excellent. A huge number of people are here, and we need to be here,” he added. Phase two of Al Barari includes several distinctive living zones including The Living Wall, which encompasses a walled garden walkway featuring rustic organic shops, individual mixed retail outlets and lifestyle apartments. The Cultural Island with its open-air markets, galleries, exhibition halls, theatres and Art Guild will act as the cultural heart and soul of Al Barari. The Grand Mosque, an Islamic architectural statement that intertwines modern day living with traditional
harmonious balance and The Old Souk, a blend of retail outlets, fresh markets, small offices, restaurants and coffee shops. In addition to 55 secluded spa villas with private treatment pavilions and pools, Al Barari’s Billionaire Collection will deliver top drawer apartment living. “We also want to push the realms of luxury living, and our Billionaire Collection with infinity swimming pools, hanging gardens, courtyards, home theatres and private home spas will redefine the apartment concept,” added Bin Zaal. Bin Zaal confirmed that the on-time handover of phase one, with 300 villas, will take place within the next four months, and subsequent future phases will be delivered every three months thereafter with the phase two spa villas ready in two and a half years. Stand 3C10
Dubai 2008 $ Cityscape official show daily
$ 11
NEWS update
STUDIO D enters design marketplace European architect eyes Middle East opportunities GCC – Regional commercial and hospitality projects are being targeted by European architecture studio STUDIO D, as part of its strategy to enter the GCC market. Its focus is the development and project management of both indoor and outdoor architecture, with an emphasis on restaurants and hotels. After a dynamic year in Southern Europe including a 10,000-square-metre dining area in Expo Zaragoza 2008, STUDIO D aims to strengthen its position through its involvement in Cityscape, by establishing its international team and showcasing its design ability within a Middle Eastern context. Stand ZB78
Burooj Properties unveils waterfront tower
KAIZEN SHOWCASES FIRST PORT RASHID PROJECT All projects in Nakheel development to be gold LEED rated
DUBAI – Kaizen Developments disclosed details of its Altura project, at Cityscape yesterday, which is the first known project in Nakheel’s Mina Rashid development in Dubai. The 6.8-million-square-metre tower in Port Rashid, Bur Dubai, will be officially launched next month, with construction starting in the first quarter of 2009 and completed in June 2011. Amir Salam, managing director of Kaizen Developments, said: “We believe that the Mina Rashid project will be unique, drawing on the roots of modern day Dubai. The redevelopment will build on the culture and heritage of the original port. “We believe that this project will epitomize what Kaizen Developments stands for in terms of quality and efficiency, and our ethos of ‘Responsible Luxury’,” he added. As a requirement of Nakheel, the Altura project will be LEED certified to gold standard. The Cityscape event also marked the launch of Kaizen’s Equinox Residences, which is the first RERA (Real Estate Regulatory Authority) approved development on the Palm Jebel Ali Crescent. This US$194.6 million development on Crescent A of the Palm will offer 21 floors of one to four bedroom, duplex and penthouse apartments – each with unobstructed views of the Gulf and direct access to the beach. The apartments feature Bosch designer kitchens, Bose stereo systems, smart home technology and the building boasts a state-of-the-art gym with in-house nutrionists and personal trainers. The building even has a concierge and chauffer car service. Construction will begin on the 22,296-square-metre development in the first quarter next year and complete in December 2010. Kaizen has a portfolio of US$2.5 billion in developments, at various levels of progress, and the company hopes to have them all launched within the next six months. Going forward Kaizen said it will continue to develop in Dubai and Abu Dhabi, with an eye on the wider Gulf region – in particularly Saudi Arabia. Salam said that traffic flow had been high during this Cityscape event, dispelling any fears of a market downturn. He added that any consolidation in the market was only a good thing because when customers become more discerning and financiers more selective the customer seeks out the highest quality products, in the best locations and built by the most reputable developers, “which is all good for the market”, according to Salam. Stand RC30
12 $ Cityscape official show daily $ Dubai 2008
Project located on Al Reem Island
Eco-friendly village unveiled by Deyaar Project includes Dubai’s first cycle paths DUBAI – Deyaar Development has announced an environmentally friendly mixed-use community off Al Warqa, Dubai. Deyaar Village is conveniently located on Emirates Road with easy access to Dubai International Airport, Dubailand and the forthcoming metro station. The new community will include residences, offices, shops, an open-air theatre and open green spaces for more than 30,000 residents. Deyaar Village has been designed on the theme of ‘wellness’ and will have significant green spaces, including a sprawling central park, a range of landscaped gardens and bicycle paths – a first for any such project in the emirate. Unveiled at Cityscape Dubai, Deyaar Village was showcased at the company’s 270-squaremetre pavilion modelled on the layout of this new community project. Markus Giebel, CEO of Deyaar, said: “Deyaar Village promises to attract individuals, families and businesses eager to work and live in a harmonious and healthy community.” Stand 2C10
CITYSCAPE SOUNDBITE...
DARRELL METZGER CEO, Ruwaad Destinations
What do you think were this year’s hot topics? The local real estate market is a hugely dynamic one. We need only look at the phenomenal developments that have been taking place over the last five years in Dubai to realise that this industry is in a constant state of innovative flux. We are currently witnessing the development of the world’s tallest tower and we are in a period of anticipation about a number of master planned developments that are likely to put the Middle East on the world’s stage
DUBAI – Burooj Properties has unveiled a 40-storey tower project with 270 apartments in the City of Lights development on Abu Dhabi’s Al Reem Island. Burooj Terraces is 25 kilometres from Abu Dhabi International Airport and offers great views of the beaches on the island and the Arabian Gulf. The development also includes a multi-purpose hall, gym, a swimming pool, steam room and sauna, and dedicated parking spaces for both residents and shoppers. Easa Al Tenaiji, assistant general manager of Burooj Properties, said: “Burooj Terraces is a unique tower as it provides residents with all the amenities that are essential to a comfortable urban lifestyle.” Stand ZH60
update NEWS
CITYSCAPE SOUNDBITE...
CITYSCAPE SOUNDBITE...
How important is it for you to be present at this and other Cityscape events? “It is of extreme importance for us to be present relevant at exhibitions, so that we can maintain our associations with key developers
What were your expectations at Cityscape Dubai? This year’s Cityscape presented an important foundation for participants to meet and discuss ideas and developments within the property development sector. Omniyat Properties sought to engage in such discussion and build relationships while reviewing investment opportunities to develop projects in the UAE and abroad
SAMIR BADRO, Chairman, Greenline Interiors
MEHDI AMJAD , President and CEO, Omniyat Properties
Riffa Views awarded US$750,000 waste water contract Metito set to treat 3,600 cubic metres waste water per day BAHRAIN – Riffa Views in Manama, Bahrain has awarded a contract worth US$750,000 to Metito Utilities for the treatment of waste water on the 2.8 million square metres residential development. Walid Madwar, business development manager, Metito Utilities, said: “The conventional aeration process started in 2008 with a small temporary plant but, with the success of the development, within a few months extra capacity was requested.” Metito developed the plant into a Build, Operate, and Transfer project (BOT) which aims to cater for the growth of the residential area. The now ready to operate Sewage Treatment Plant is able to treat 3,600 cubic metres of wastewater per day. The final effluent from the treatment plant will be used for golf course irrigation and to keep the surrounding area green. Founded in 1958, Metito now operates locally in 14 countries of the Arab and Islamic World, and supplies its plants internationally to global locations such as Argentina and Australia from its UAE base. It has recently supplied high purity demineralised water for Jebel Ali and Umm Al Nar power projects and a MBR waste water treatment plant for Palm Jumierah and Al Yas Island in the UAE, as well as a large sea water desalination plant for The Pearl project in Qatar.
CADIZ INTERNATIONAL DESIGNS NEW RAK TOWN SQUARE
Manar Mall expansion to offer lifestyle destination DUBAI – Plans to expand the existing Manar Mall site in Ras Al Khaimah and double its size have been revealed. The new-look mall will incorporate a waterfront promenade with up to 20 concept restaurants and dining outlets overlooking the local mangroves. A four-star family hotel, serviced apartments and two condominium towers will create a mixed-use destination. The plans also include a watersports venue and water taxi service. The island fronting the mall is also pegged for development, creating a new ‘Mangrove City’. Mohammed Sultan Al Qadi, managing director and chairman of Manar Mall, said: “It is high time to renovate, improve and expand the Manar Mall Development to align with the government’s policy of enhancing the lifestyle of Ras Al Khaimah by providing a place that is all things for all people.” The design, created by Cadiz International is focused around the concept of a town square. According to Cadiz CEO Medardo Cadiz: “Lifestyle is more than shopping, it’s about enjoying yourself with your friends and families in a special place. “With all the improvements specially the new public waterfront promenade, people will come not just to shop but to stay and enjoy the picturesque environment.This is like a big piazza, a town square for everybody.” Once completed the new centre will be rnamed as Manar City – A City within a City. The 22-storey Manar Residence, which will cover an area of 55,000 square metres, will have a tropical-influenced design that will highlight the nearby mangrove plantations, while vertical landscaping will be used to complement the natural environment.
CITYSCAPE SOUNDBITE...
PATRICK GALLAGHER, Patrick Gallagher Decoratives and Design
What did you hope to achieve at Cityscape Dubai? We are a renowned interior design firm, operating throughout Europe and the USA. We are currently establishing a presence in Dubai to cater to a growing need for international standard interior design. Our services are of an ultra high-end nature, with clients throughout Europe and the USA. The objectives of PG D&D are of a B2B nature. Our primary goal in attending Cityscape Dubai was to build our client portfolio in the Middle East and to further acquaint ourselves with high end, regional trailblazers
Record demand for real estate finance says firm 470 applicants on day one alone DUBAI – Tamweel has revealed a ‘record response’ to its finance packages at Cityscape despite the global credit crisis. The mortgage lender recorded more than 470 registrations for property on the first day alone indicating that the market is still strong. Investors and end-users responded positively to Tamweel’s offer of up to 90 per cent finance for visitors who register for a pre-approval facility at the company’s exhibition stand, with no arrangement fees upon registration of select properties. CEO Wasim Saifi said: “Amidst ongoing turmoil in the global credit markets, there was a great deal of anticipation about the response from investors and end-users to the Cityscape event. “But by the end of the first day and the record response to our finance offers, we remain more convinced than ever that the fundamentals of the market here remain extremely sound. “We are still a good three years away from supplydemand equilibrium in the Dubai market, and the appetite for well-priced properties remains unabated.” He added: “For real estate finance providers like Tamweel, the future appears extremely bright.” Stand 6B30
Cpanama Real Estate debuts at Cityscape Company from Latin American offer investors range of services PANAMA – Cpanama Real Estate Corp. will showcase Panamanian investment opportunities this week. The company offers investment strategy consultation, joint ventures, and project management services at the pre-construction stage as well as for existing properties in Panama City and the interior of the country. The company also offers foreign investors legal services and help in acquiring residency. The Colon Free Trade Zone is second only to Hong Kong in size, and is host to most of the world’s major shipping routes, with US$14.6 billion worth of goods shipped through in 2006. Stand 8H40
Dubai 2008 $ Cityscape official show daily
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programme CONFERENCE
THE LINE-UP: CONFERENCE AND SUMMIT PROGRAMME DAY 4: THURSDAY 9TH OCTOBER
INTERNATIONAL REAL ESTATE INVESTMENT AND DEVELOPMENT CONFERENCE BRANDING – TIRING OR INSPIRING? SHOULD WE REINVENT THE WHEEL? 10:00 Registration And Coffee 11:00
Chairman’s Opening Remarks
11:10
Emerging Marketing And Branding Trends In The Middle East Real Estate Market – Futurebrand’s Gulf Real Estate Study 2008 Rina Plapler, Executive Director, FutureBrand, USA
11:40
12:10
Keynote: Online Advertising – The Power Of The Internet To Reach Global Buyers Simon Baker, CEO, REA Group, Australia How Appropriate Branding And Marketing Of Properties Can Impact Your ROI Win Peniston, Vice President, Strategy & Development, Posner Advertising, NY, USA
12:35
The Power of Impact Branding: Risk Mitigation and Return Optimisation Michael Shvo, President, Shvo, USA
13:00
The World Is Full Of Newly-Built Properties – How Will The Middle East Property Boom Sustain Its Competitiveness On The Global Stage? Peter Robinson, Director, Richmond Green Group, UK
13:30
Networking Lunch
14:30
Sales And Marketing Innovation In Real Estate Peter Gianoli, Director of Sales and Marketing, Saville, Australia
15:00
Destination Branding For Today And Tomorrow Jonathan Bell, Managing Director, WANT Branding, USA
15:30
Creating, Building And Delivering The Right Brand Promise To Add Value To Customers Lives Leonie Matta, Marketing and Communication Director, Saraya Holdings,UAE
16:00
Chairman’s Closing Remarks and Close of Conference
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Dubai 2008 $ Cityscape official show daily
$ 17
SPEAKERS keynote
SPEAKERS ONE-ON-ONE Lee Tabler CEO, Tourism Development and Investment Company (TDIC) HOTEL & TOURISM INVESTMENT & DEVELOPMENT CONFERENCE Topic: The champions and challengers of Middle East Tourism Session timing: 10:30am today, Sheikh Maktoum Hall TDIC redevelopment, Al Bateen Wharf, Abu Dhabi
Lee Tabler is perfectly suited to his current position with an extensive educational background involving architecture and planning as well as real estate finance. He explains: “My career has taken me travelling around the world from North America to Europe and the Middle East, where I held positions in Dubai and Saudi Arabia. “Prior to joining TDIC I already had more than 25 years international real estate development experience – 15 of these were in senior management positions with technical and financial responsibilities. My broader experience encompassed project feasibility, concept and real estate development, brand creation and project management. “Previously I was heavily involved in the entire real estate
professionally and successfully, matching the expectations of TDIC’s stakeholders, in terms of operating a company that is gaining world-class stature, and which is now a significant force on the global hospitality, leisure, cultural and tourism landscape. “In delivering on these expectations I have to ensure that the core ethos of Abu Dhabi – that of environmental, cultural and socio-economic sustainability is reflected in everything TDIC does,” adds Tabler. Tabler is motivated by the sense of being a part of the history of Abu Dhabi. He adds: “This emirate is going through a very exciting evolution into the stately global capital envisaged in the government’s Urban Plan 2030. Abu Dhabi is experiencing something of a cultural and hospitality renaissance and is embracing
development chain including, planning and design, legal review and co-ordination, as well as due diligence and negotiation on land acquisition and deal structuring for major mixed-use, hospitality and entertainment projects.” Tabler’s overall role is to ensure the company’s strategic plans and policies are delivered
projects of a scale and scope unimaginable in most other places.” The Cultural District on Saadiyat Island – which will be home to the world’s single largest concentration of premier cultural institutions – is a case in point. “A global cultural hub of this size and significance has never been attempted in living
memory. Abu Dhabi is pushing the envelope, but in a manner respectful of its past while defining the future. How could anyone fail to be motivated by this courage and foresight?” he comments. TDIC was established less than three years ago to manage and develop the tourism assets entrusted to it by its sole shareholder, the Abu Dhabi Tourism Authority. From the outset, TDIC made worldwide headlines with the unveiling of its flagship Saadiyat Island project – the natural island just off Abu Dhabi city shores, which is being transformed into a signature leisure, residential and cultural destination. Since its inception, the island has continued to capture global media attention – with news of the Sheikh Zayed National Museum, the Guggenheim Abu Dhabi Museum, the Louvre Abu Dhabi and other institutions. Tabler says: “Believing that these buildings will be as much a visitor draw as their contents, we then went on to sign up some of the world’s most eminent architects for their design. These include Lord Norman Foster, Frank Gehry, Jean Nouvel, Zaha Hadid and Tadao Ando. “This was the start of a world-class partnership approach that has now become something of a TDIC hallmark and that has since led us to partner with golfing legend Gary Player, for the championship Saadiyat Beach Golf Course and with St. Regis, for the operation of its first hotel
in the region on Saadiyat Beach, and for a number of other alliances across the hospitality, construction and engineering sectors.” TDIC has since gone on to be the master developer of the recently-opened, multiexperiential Desert Islands destination in Abu Dhabi’s Al Gharbia (Western) region and the Qasr Al Sarab desert resort in the emirate’s famed Empty Quarter. These flagship developments head a growing project portfolio, which now comprises city centre business resorts, exclusive gated island neighbourhoods and the mixeduse urban redevelopment of landmark areas. In his presentation to delegates at Cityscape Dubai, Tabler intends to give insights into Abu Dhabi’s recent hospitality renaissance and to outline the significant investment opportunities which have, and continue, to emerge within the emirate. Tabler insists that the commitment of TDIC to sustainable development is total.
“I am adamant that TDIC not only ‘talks the talk, but walks the walk’. “Throughout our projects we have undertaken a slew of environmental initiatives, from the protection of turtle breeding grounds on Saadiyat Island, to the upgrading of a bird sanctuary on Sir Bani Yas Island – at the core of the Desert Islands project – to the creation of environmental construction guidelines for our investors and developers. “These guidelines touch on materials to be used, no-go construction areas, noise and light restrictions and waste disposal. “Sustainability is drilled into TDIC’s corporate DNA.” TDIC has an advertising campaign that states: ‘Because sometimes it’s about what you don’t develop that matters’; and Tabler believes that this sums up the company. “From the outset we have been totally committed to environmental preservation and have adopted something of a leadership role in this arena.
“We are also differentiated by our determination to deliver to ‘best of breed’ standards across all fields in which we operate and we have proven this with the partnerships we have struck.” Another core principle of TDIC is to protect and promote the cultural heritage of Abu Dhabi, and this is reflected in the various company projects. At Qasr Al Sarab, for instance, there are authentic architectural touches, which were implemented following research from the UAE University in Al Ain. Whereas, on the Desert Islands, the company has endeavoured to use culture to its advantage. Even the signage on Sir Bani Yas Island has been made from wood taken from an unused dhow from nearby Dalma Island and it has been fashioned in the style that was first created when the destination was the private ecoresort of the late UAE President and Ruler of Abu Dhabi, His Highness Sheikh Zayed bin Sultan Al Nahyan.
TDIC headquarters
18 $ Cityscape official show daily $ Dubai 2008
CONFERENCE programme
THE LINE-UP: CONFERENCE AND SUMMIT PROGRAMME DAY 4: THURSDAY 9TH OCTOBER
HOTEL & TOURISM INVESTMENT & DEVELOPMENT CONFERENCE 10:00
10:15
Chairman’s Opening Remarks Stephen Marney, Former Sky News Presenter, General Manager, Middle East Centre For Sustainable Development, UAE Bigger, Better Or Budget? The Middle East Gap Conrad Bigham, Director, Cushman & Wakefield Hospitality EMEA, UK James Simmonds, Project Manager, Mubadala, UAE James Lehouiller, President, Dileonardo International, USA Mihir Thacker, Director Development Middle East & Africa Intercontinental Hotel Group, UAE Rohit Talwar, CEO, Fast Future, UK Hala Matar Choufany, Director Middle East, HVS International, UAE
11:00
Networking And Refreshment Break
11:30
Private And Boutique Hotels: The Market Squeeze Ananya Narayan, Senior Vice President, Global Strategy, Preferred Hotel Group, UAE Rod Taylor, Head of Hospitality & Tourism, Europe Arab Bank, UK
20 $ Cityscape official show daily $ Dubai 2008
12:15
The Attraction Of Attractions Darrell Metzger, CEO, Ruwaad Destinations, UAE Malcolm Ross, Chief Operating Officer, Seven Tides, UAE Manfred Ursprunger, CEO, QE2 Enterprises, Nakheel, Dubai
13:00
Lunch For Speakers And Delegates
14:00
Hotels Going Green: The Eco-nomics Gary Lopez, Group Director Of Development And Planning, Jumeirah Group, UAE Members Of The Middle East Centre For Sustainable Development
15:00
Creating Luxury Design: 5 star hotels on 4 star budgets James Lehouiller, Chairman, Dileonardo International, USA Scott A. Lee, Senior Vice President, Principal SB Architects, USA
15:45
Chairman’s Conference Summary
16:00
Close Of Conference
WORLD ARCHITECTURE CONGRESS POST-CONGRESS WORKSHOP
Spotlight On Large Scale Lighting Projects and Sustainability In Modern Lighting Design Led by: Jonathan Speirs, Partner, Speirs & Major Associates, UK Workshop Timings: Registration will begin at 09:00 with the workshop beginning at 09:30. There will be refreshment break at 11:00. The workshop will conclude at 13:30 with lunch.
programme CONFERENCE
WORKSHOP AND SEMINAR PROGRAMME DAY 4: THURSDAY 9TH OCTOBER
SEMINARS@CITYSCAPE DUBAI 11:00 â&#x20AC;&#x201C; 12:00 REAL ESTATE AGENTS THEME Corporate Culture & Services t )PX UP CVJME BOE NBJOUBJO BO FGGFDUJWF DPSQPSBUF DVMUVSF t " DVMUVSF PG TFSWJDFT 12:30 â&#x20AC;&#x201C; 13:30 REAL ESTATE AGENTS THEME Real Marketing 3FBDIJOH PVU UP UPEBZ T DPOTVNFS $SPTT CPSEFS NBSLFUJOH 14:30 â&#x20AC;&#x201C; 15:30 PROJECT MANAGEMENT THEME FIDIC â&#x20AC;&#x201C; Contract Heaven Or Hell? 16:00 â&#x20AC;&#x201C; 17:00 PROJECT MANAGEMENT THEME Developing The Right Skills For Managing Projects In A Fast Moving Sector
11:00 â&#x20AC;&#x201C; 12:00 ARCHITECTURAL THEME Dubai Towers: Innovations by Design $VUUJOH FEHF EFTJHO *OOPWBUJWF TPMVUJPOT FOHJOFFSJOH 4VTUBJOBCMF %FTJHO
16:00 â&#x20AC;&#x201C; 17:00 TECHNICAL SESSIONS SUPPLIER/VENDOR Energy Efficient Mechanical Systems For Low Energy, High Performance Buildings &OFSHZ PQFSBUJPOBM FGGJDJFODZ JO DPOWFOUJPOBM CVJMEJOH IFBUJOH WFOUJMBUJPO DPPMJOH QJQFE TFSWJDFT TZTUFNT JOEPPS BJS RVBMJUZ OBUVSBM WFOUJMBUJPO FOWJSPONFOUBM DPOTJEFSBUJPOT
12:30 â&#x20AC;&#x201C; 13:30 ARCHITECTURAL THEME Dubai Towers: Innovations by Design $VUUJOH FEHF %FTJHO *OOPWBUJWF TPMVUJPOT &OHJOFFSJOH 4VTUBJOBCMF %FTJHO *OOPWBUJPO 14:30 â&#x20AC;&#x201C; 15:30 TECHNICAL SESSIONS SUPPLIER/VENDOR Integrating Customer Relationship Management (CRM) systems into the business and building systems of real estate projects
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DUBAI â&#x20AC;¢ ABU DHABI â&#x20AC;¢ RAS AL KHAIMAH â&#x20AC;¢ SHARJAH â&#x20AC;¢ BAHRAIN â&#x20AC;¢ DOHA â&#x20AC;¢ LONDON â&#x20AC;¢ WOKING â&#x20AC;¢ RUSSIA â&#x20AC;¢ FRANCE
Dubai 2008 $ Cityscape official show daily
$ 21
keynote SPEAKERS
SPEAKERS ONE-ON-ONE Rina Plapler
Michael Shvo
Executive Director, FutureBrand
President, Shvo
INTERNATIONAL PROPERTY INVESTMENT AND DEVELOPMENT CONFERENCE Topic: Emerging Marketing and Branding Trends in the Middle East Real Estate Market Session timing: 11:10am today, Sheikh Maktoum Hall
INTERNATIONAL REAL ESTATE INVESTMENT AND DEVELOPMENT CONFERENCE Topic: The Power of Impact Branding: Risk Mitigation and Return Optimisation Session timing: 12:00pm today, Sheikh Maktoum Hall
Rina Plapler has worked at FutureBrand for almost nine years, and has been based in the Gulf for almost eight years. Prior to that she worked at blue chip strategy firm Gormley & Partners in the US. She says: “I feel my current job is absolutely perfect for me as I earned a Masters Degree from Harvard University in Near Eastern Studies and majored in Arabic and Islamic Studies. “So now I get to do branding work in a part of the world I have always been fascinated with, and involved with a culture and language I have studied for years.” Plapler is senior executive director of consulting for FutureBrand North America and Middle East. “That basically means I work with a very smart group of
Michael Shvo began his career as a real estate broker in New York, which, he says, allowed him to learn first-hand what buyers were looking for in a home. “By spending a great deal of time with buyers – listening intently to what their needs and desires were – I grew to understand how to match their wants with what the market had to offer,” says Shvo. “I quickly became very successful, not because I was necessarily smarter than the other brokers, but because I paid attention to what they had to say and I did my
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Plapler says that in the Middle East the real estate branding trends include the fact that high-priced developments are continuing to woo buyers with more extravagant efforts – private concerts, flights to Europe, etc. “We also see cities and countries not just promoting their developments, but themselves, with rebrands for Abu Dhabi, Sharjah and a new ad campaign for Bahrain. “New Urbanism was definitely a hot trend this year, with many companies featuring it directly or indirectly as a core part of their offering. On a more concerning note, it seems that with delays, cancellations and various scandals, there’s a bit more of a dark cloud over the category than in years past. “In terms of real estate brand performance, Plapler suggests
“They command better price premiums, have longevity, provide greater customer loyalty and connect with people in a way that a generic product does not. A company can optimise this asset many ways: expansion, franchising, partnering, price tiering, etc.” However, she questions how many companies really invest in branding. “A logo and a brochure do not a brand make,” she adds. Through the years many people have said that developer brands could charge a premium over others because of the strength of their brand. Plapler adds: “I think it’s clear a strong brand definitely can impact sales and rentals positively, both in terms of price and volume but obviously any great brand needs to deliver. “If you are selling something that is inferior, don’t try and charge top dollar. A basic of branding is being credible promising is easy, performing is hard.” In order to quantify the impact of a brand, Plapler recommends that the brand’s performance is annually benchmarked. “That way, its strengths, weaknesses and maturity are clearly measured
Some of the world’s most innovative offerings are in the region but, at the same time, we’ve seen some cracks and concerns, everything from the global economic crisis and inflation to corruption, lack of transparency and delays
people in our consulting team, helping to develop strategic brand solutions for our clients,” she adds. At Cityscape Dubai, Plapler will showcase FutureBrand’s fourth annual Gulf Real Estate Study and outline the notable trends, findings and insights of the research. This will include brand performance listings across the region, opportunities for brands to improve themselves, and the overall state of real estate marketing from a branding and marketing perspective. FutureBrand is a relatively new brand consultancy. It was established with the objective of marrying strong consulting and world-class design to create a firm that was futurefocused; creating powerful drives for today and tomorrow.”
that Emaar is certainly the strongest across the Middle East. “There are pockets of strong local performers, but Emaar is definitely the benchmark by far,” she argues. Plapler suggest that we are in an incredibly fascinating time in the Gulf as the real estate industry is at a crossroads. “It has certainly matured from 2000 when things in Dubai were just starting. Some of the world’s most innovative and amazing offerings are in the region but, at the same time, we’ve seen some cracks and concerns, everything from the global economic crisis and inflation to corruption, lack of transparency and delays.” Plapler says that for those companies that put the effort in, strong brands have been shown to be good business.
and can be tracked. “Keep in mind, there’s a continuum in customer behavior, starting with being aware of the brand, to ultimately being an advocate for it. “Depending on where a brand we are working with is in this spectrum, which we call the Hierarchal Decision Model (HDM), there are different needs and different success factors that should be measured.” There are also more isolated/ indirect ways to test impact, including questioning whether a new marketing and branding programme resulted in increased calls or visits to the sales centre, or whether a new customer service programme resulted in less complaints, according to Plapler.
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purchase or it can steer them to your competition,” he says. As CEO and president, Shvo has a huge number of responsibilities, but he sums them up into one word - to ‘inspire’. Shvo says: “My role is to inspire developers to build something that has never been built before, to inspire brand partners to think outside of their traditional comfort zone, to inspire my talented staff to never accept the status quo, to inspire our vendors to help us be the first to market with innovative ideas and designs, and most
designers they admire, the hotels they stay in. In short, – we immerse ourselves in the buyer’s lifestyle and then call on our rolodex of brand partners to best find the perfect match.” Shvo believes that a real estate project with the right international brand attached to it will out-perform an unbranded real estate project. “We’ve proven this in New York and now we’re proving it in projects around the world,” he adds. That impact is quantified by the increase in the cost
My role is to inspire developers to build something that has never been built before, to inspire brand partners to think outside of their traditional comfort zone
homework to best understand which product was available to best meet their needs. “Whereas other brokers would waste a lot of time showing prospective buyers apartment after apartment, I typically never had to show more than one or two before I was able to close the deal, because those one or two apartments perfectly met the criteria that the buyer was looking for,” he adds. Shvo started his company because he wanted to surround himself with like-minded professionals who could work together to help developers build products based on their in-depth understanding of the marketplace. He adds: “I’ve hired the best researchers, strategists, project designers, branding experts, marketing and creative professionals and internationally-savvy sales staff to bring a project to life and to market. “Because I understand very well why buyers make the choices that they do, I personally enjoy the challenge of crafting the sales centre experience to make an emotional connection with the buyer. No detail is too small – from the images that appear on the video monitor to the cushions on the sales office couch – consumers notice these details and it can make the difference between making a home shopper feel comfortable in making a
importantly, to inspire home buyers to think beyond the tangible assets of the project and to imagine a lifestyle that they never dreamed possible.” Shvo says that he is motivated by working with talented individuals to build projects and experiences that have never been built before. In terms of avoiding and mitigating risks in branding exercises, Shvo says that it is imperative to ensure that the branding path you choose resonates with the consumers’ wants and needs. “It’s the fundamentals of being a good marketer and salesperson,” he adds. In real estate, brand partnerships are a fairly new phenomenon, pioneered by Shvo. He says: “We’re proud to have been the first company to introduce Armani Casa, Philippe Starck, Jade Jagger and the W Hotel to the New York property buyer.” The process of selecting a brand partner is about understanding where the un-met need is in the marketplace, according to Shvo. Once that is determined, it is about exploring what specifically appeals to the buyer in product categories outside of the real estate space. He adds: “Our research and marketing group goes to great lengths to investigate which cars they drive, the restaurants they dine at, the fashion labels they wear, the watches they buy, the
per square that a branded development can achieve versus the competitive product. Strategically planned and well-branded products will always result in a higher selling price and ultimately, greater profits, according to Shvo. However, the wrong brand associated with a real estate venture can be devastating. “We’ve witnessed several developers that have gone down the wrong path without truly understanding the lifestyle of their consumer targets and choosing brand partners that have actually done irreparable damage to their projects and resulted in lost sales and overall poor market reception.” Shvo believes that brand and quality go hand-in-hand in terms of importance, he adds: “Why should anyone have to make a choice between the two when you can have both?”
Dubai 2008 $ Cityscape official show daily
$ 23
NEWS update
Colliers International UAE launches Capital Investment Division
Omniyat targets three deliveries in third year Developer to double current portfolio DUBAI – Omniyat Properties is looking to double its current US$2.7 billion portfolio within the next two years and is preparing for three major deliveries in the first half of next year. Speaking at Cityscape Dubai, Mehdi Amjad, CEO, said that the company is already gearing up for the opening of Beachfront Living, Fusion Tower and its signature Omniyat Tower in Business Bay – which will coincide with the developer’s third anniversary. In all, the developer, which promotes itself as a 21st century lifestyle provider, has eight projects currently under construction. “We are a niche developer which focuses on design, technology and innovation,” said Amjad. In a credit-crunch busting move, Omniyat is planning to launch a major 20,774 square metre residential development in Bahrain at the end of 2008, and open an office in Saudi Arabia. “We believe that there’s still huge potential in the GCC,” he added. “We are going to face challenges in the short-term, but the key fundamental drivers are very strong – good leadership, population growth, strong economies and strong demand.” He said that its investor pool is drawn far and wide, encompassing the UK, CIS, India, Pakistan and GCC countries. Commenting on the introduction of Law 13 in the Dubai market, which will tighten up off-plan sales, Amjad said it was a move he supported, adding that Omniyat stipulates that buyers must put down 30 percent before they can sell. “It will stabilise the market and encourage investors to take more of a long-term view,” he said. While he agreed that the current spikes in the Dubai market were not sustainable, Amjad said rates were still affordable when compared with Singapore and London. “I think by the end of next year we will see everything settle down and a good balance between supply and demand.” Stand 4B30
Unit established to satisfy growing demand for high quality investments DUBAI – Colliers International adds investment services to its UAE business operations with the launch of its dedicated Capital Investment Division. The new business unit has been established to satisfy a growing demand for high quality investment opportunities in the booming Middle East region. Colliers Capital Investment Division enables investors to leverage the firm’s extensive market intelligence and network of clients when investing in the global real estate market. With over US$1 trillion worth of projects underway within the GCC, investors are becoming increasingly sophisticated in their search for suitable opportunities. John Davis, CEO of Colliers, said: “Our aim is to identify direct and indirect investment solutions that can meet our investors’ target returns and risk profiles.”
US$4.4 BILLION UPGRADE FOR WEMBLEY CITY A dynamic renewal for London’s principal sporting venue
Dubai Properties launches integrated services subsidiary Asset and community management focus for regional clients DUBAI – Dubai Properties Group has launched Dubai Asset Management, an asset and community management subsidiary which provides integrated services to clients regionally. The newly-launched company, whose client portfolio includes more than 200 blue chip companies, comprises five subsidiaries – Dubai Security Group, Dubai Community Ventures, Baabel Life, Enmaa Consultancy and Idama Facility Services. Mohamed Binbrek, Group CEO of Dubai Properties Group, said that Dubai Asset Management has been established to manage the fundamental operations of Dubai Properties Group developments and other leading communities around the emirate. “The company brings extensive experience to the market and will be a solid asset to community partners with its full line of management services and client focused solutions,” he commented. Stand 6F10
UK – England’s premier sports venue, Wembley Stadium, has undergone a dramatic transformation at the hands of regeneration specialist, Quintain Estates and Development. The landmark ‘Wembley City’ scheme, which surrounds the world famous football stadium, will be showcased at Cityscape giving investors the opportunity to review the proposals for the US$4.4 billion project. Nick Shattock, deputy chief executive of Quintain, comments: “The transformation of the area around Wembley is very exciting and continues our commitment to delivering visions, which transform world-class venues. “The launch of this dazzling project, leading up to the 2012 Olympics, for which Wembley is an official venue, has the capacity to drive demand at the site. It will also see the creation of 7,000 new jobs and pump US$263 million per year into the local economy.” When completed, the 365,000-square-metre Wembley City site will provide a combination of living, entertainment and business premises. This will include 85,000 square metre of office and commercial space; 55,000 square metres of retail; 46,000 square metres of entertainment and leisure, including a 10 screen cinema; 4,200 homes on 344,000 square metres of residential space; a luxury hotel; an apart-hotel; and will create in the region of 7,000 new jobs. The retail offer includes a 14,000 square metre designer outlet centre, 13,000 square metres of sports related retail and 13,000 square metres of restaurants, bars and cafés. Stand 1B01
CITYSCAPE SOUNDBITE...
MIMIT BHUTA, Director, Ajit Bhuta and Associates
What were this event’s hot topics? Large-size development and investment opportunities in other Gulf countries as well as developing countries like India, Pakistan, China and Africa, as well as green development and architecture
24 $ Cityscape official show daily $ Dubai 2008
Upscale hotel to open in the exclusive Al Seef precinct ALDAR agrees deal with Swiss chain ABU DHABI – ALDAR Properties has announced the signing of an agreement with Swiss-owned Mövenpick Hotels & Resorts for the operation of an upscale resort hotel. The development, in the Al Seef precinct on the Al Raha Beach development, is the second hotel property to be developed and built by ALDAR as part of a strategic alliance between the two companies. The hotel will be an island resort with 300 rooms in the residential precinct of Al Seef, in Al Raha Beach. Paul Bell, managing director of ALDAR Hotels & Hospitality, said: “The agreement we have signed with Mövenpick Hotels & Resorts delivers on ALDAR’s strategy of partnering with world class operators who have the experience and scale to ensure the best facilities and services are delivered to our customers.” Andreas Mattmüller, of Mövenpick Hotels & Resorts, said: “This deal with Aldar reinforces our commitment to providing Swiss hospitality to the Middle East and especially Abu Dhabi. “ALDAR is developing some spectacular developments, like Al Raha Beach and Yas Island, and we look forward to establishing our brand on these landmark developments.” Mövenpick Hotels & Resorts operates 18 properties throughout the Middle East and over 60 globally. Stand 4G10
NEWS update
Zaya reveals plans for child-centric project Cityscape Dubai delegates provide acid test for development ABU DHABI – Zaya will launch a new high-end family-centric development in March next year, according to the CEO, Nadia Zaal. The Makani development will be built at an undisclosed location in the UAE as a destination spa hotel resort, with a residential component. Zaal said that the company was using Cityscape Dubai to refine the concept by asking potential investors for their feedback on the plan. The family theme will be integrated throughout the project, with a child-only restaurant and specially design children’s rooms throughout the hotel and residential components. The project will also have a strong well-being element, for the adults, with luxurious spa facilities and feng shui furnishings. Zaal said that the company was looking across the Middle East, at Oman and Qatar in particular, as well Eastern Europe and Asia, possibly Cambodia or Bhutan, for future iconic projects. Zaya released a limited number of additional units on its Nurai project, in Abu Dhabi, on the opening day of Cityscape Dubai 2008. Launched in May 2008, Nurai’s first release, which constituted 70 percent of the development’s units, was sold out in less than a month. The additional units being released include limited edition beachfront estates of 1,184 square metres, which sit on generous plots, each with its own private beach, as well as luxury contemporary water villas of 514 square metres. In August 2008 mobilisation on Nurai commenced, and today marine works are underway, including dredging, sculpturing of Nurai’s beaches, preliminary infrastructure works as well as building the marina and associated marine and rock works. This is all in line with Zaya’s goal to meet its project delivery and handover date, scheduled for September 2010. A contractor will be appointed this week, and the winner bidder will be bound to supply one beachfront and one waterfront unit in time for showcasing in November 2209, when the Formula 1 racing event comes to Abu Dhabi. At that moment the last remaining units will be sold in an auction to the highest bidder. Stand RJ10
F Towers debut New mixed-use project for Fakhruddin DUBAI – Dubai-based Fakhruddin Properties has announced the launch of its latest project - F Towers in Downtown Jebel Ali. The US$245 million project will have 22 storeys and feature retail, commercial and residential as well as extensive leisure amenities including a swimming pool, health club and mini golf course. Commenting on the launch, Yusuf Fakhruddin, CEO, said: “Cityscape Dubai is the ideal launch pad for any competitive real estate project, offering massive exposure for the new project in a setting ideal for this purpose, as this is the definitive real estate event for the region. “Anyone, corporation or individual, who is serious about real estate, makes a point of coming to Cityscape Dubai. In addition to launching the F Towers project, Fakhruddin is also showcasing several of its other major developments, including Lake Central, Maimoon Towers and Coral International. Stand RL10
28 $ Cityscape official show daily $ Dubai 2008
German architects tour show Group stunned by projects
ICE tower
ABYAAR REVEALS THREE TOWERS International architects to deliver a trio of unique ‘boutique’ properties
DUBAI – Following its recent corporate identity ‘re-energisation’, Abyaar Real Estate Development has announced plans for a trio of towers, each featuring the design talents of indivual internationally-acclaimed architects. Abyaar’s philosophy of combining ‘prime location, award-wining architecture, designer interiors and exceptional finish’ is increasingly grabbing the attention of buyers looking for properties better able to hold their value in the long-term, according to Marzooq Al Rashdan, Abyaar’s vice chairman and managing director. “This year Cityscape is providing us with a launch pad for three outof-the-norm projects – ICE and Pier 8 towers – set within Dubai Marina - and the Dubai Arts District, set within IMPZ. All offer a different spin on lifestyle-living,” he commented. “We always keep longevity in mind – architecture is timeless, yet innovative and progressive. Our fundamental belief in a design driven process forms the foundation of our unique approach to the initiation, conceptualisation and delivery of all Abyaar projects,” he added. The ICE tower, designed by Australian architect Karl Finder, is inspired by the natural beauty of Arctic icebergs. It will be located in the Dubai Marina district and will feature 103 spatially-unique apartments with balconies hidden within an architectural fissure. Designed by Atkins, the 39-storey tall Pier 8 building includes apartments as well as two ultra-luxurious sky villas and three podium levels townhouses overlooking the marina yacht basin. Completing the three projects is an innovative arts precinct set in Dubai’s International Media Production Zone (IMPZ), to be called the Dubai Arts District. The commercial portion of the project is designed by RTKL and the residential facet is under the expertise of Marks Barfield Architects, renowned for their work on the London Eye. Stand 1D20
DUBAI – A group of 30 architects from Germany were bowled over yesterday by the size and scale of the projects on show during a guided tour of Cityscape. Architect Martin Wiedemann, from Berlin, said: “I think the skyscrapers are amazing. There is nothing like this in Germany. There is no chance to do that anymore in our country. “They are not only imaginative here but very beautiful too. We will take back some amazing memories.” Wiedemann, who has his own architectural practice in Berlin, called Thuerigen and Wiedemann, said his favourite project was the Palm Jumeirah.
CITYSCAPE SOUNDBITE...
SIPKE FEENSTRA, CCO, La Perla International Living
How important is it for you to be present at this and other Cityscape events? We are exploring and researching the possibilities of new markets such as the UAE. I have heard positive feedback on previous editions of Cityscape. If Cityscape proves successful, meaning that it was well advertised/ visited, generated prospects and created brand awareness, then we will consider participation in the other exhibitions in this area as well
Hard Rock Hotel set for Abu Dhabi Five-star chain will be ‘place to be seen’ ABU DHABI – Global brand Hard Rock Hotels has announced plans to develop a second hotel in the United Arab Emirates in Abu Dhabi. Hard Rock Hotel Abu Dhabi will be developed with the Tasameem Group. The two companies also have plans for a second Hard Rock Hotel in Dubai. “The focus is a five-star luxury hotel brand that adds personality to its properties through music, entertainment and superior customer service,” said Hamish Dodds, CEO of Hard Rock International. The tower hotel will be situated on the Al Meena Road, which is currently being rebuilt as the predominant centre for shopping, entertainment, leisure and hospitality in Abu Dhabi. Reconstruction of the area will offer green parks, pools, fountains and will provide dramatic views of Abu Dhabi. Stand 6B30
update NEWS
NAKHEEL REVEALS DESIGN ARCHITECTS FOR WATERFRONT CENTREPIECE RMJM poised to take on Madinat Al Soor project DUBAI â&#x20AC;&#x201C; Architecture firm RMJM has clinched a deal with Nakheel to design the one million square metre Madinat Al Soor mixed-use development. The Waterfront City project is a sustainable, modern pedestrian city for approximately 22,000 residents. Madinat Al Soor is master planned by Nakheel and the Rotterdambased Office of Metropolitan Architecture (OMA) and it forms the centrepiece of Nakheelâ&#x20AC;&#x2122;s Waterfront project in Jebel Ali. Waterfront City aims to transform 130 million square metres of empty desert and sea into an international community for an estimated population of 1.5 million people. The development is composed of Madinat Al Soor, the Island, the Boulevard, the Resort and the Marina, and it will be twice the size of Hong Kong Island. Stand 3B10
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NEWS update
CITYSCAPE SOUNDBITE...
New online tool for investors in GCC
KATIE HODGE Regional Communications & PR Manager, Atkins
Prelaunch.me goes live DUBAI – A new business-to-business web portal, www.prelaunch.me, is dedicated to the most lucrative phase of property sales. Prelaunch (also referred to as presale in the US & EU) is the sale of limited units/floors at an early stage to a limited audience, at a heavily discounted price enabling the investor to achieve exponential returns (historically 30 to 57 percent ROI, or 200 to 400 percent ROE) in a threemonth period. Founder and CEO of www.prelaunch.me, Karl Haddad believes online websites such as this have huge potential due to the growing e-commerce market and dynamic real estate sector throughout the GCC. He said: “Until now there has not been a single common online platform offering real estate investment opportunities, purely at the prelaunch phase. This is a different category of investor, a niche in itself, and needs a different and targeted approach with a different financial lingo. Prelaunch is when all serious investors are looking to purchase to achieve the maximum ROE. To emphasise, there are no resales, rentals, or post-launch sales that will be presented to investors.”
What do you think were this event’s hot topics? World’s biggest, world’s best, world’s first… sustainability and integration will also be on everyone’s lips
Land Department official talks up Dubai market Real estate business still booming in the emirate
PLUS PROPERTIES TO ESTABLISH BEACH COMMUNITY Beachfront resorts attract huge interest from investors
Meraas welcomes royal visitor Jumeira Gardens project attracting the Cityscape crowds DUBAI – The newly launched US$95 billion Jumeira Gardens project from Meraas Development, continued to wow visitors to Cityscape Dubai yesterday with an endless stream of visitors including His Highness Sheikh Majid Bin Mohammed Bin Rashid Al Maktoum, who was welcomed to the stand by Abdullah Al Habbai, chairman of Meraas Holding and Sina Al Kazim, CEO of Meraas Development, the subsidiary of Meraas Holding. The multi-billion dollar project will transform the heart of the city, regenerating the existing area bordering Sheikh Zayed Road between Al Diyafa Street in Satwa and the Business Bay Canal in Safa Park. Stand PB10
DUBAI – Two of the latest beachfront projects in the UAE, worth a combined US$313 million, from Plus Properties - a residential property in Dubai and residential and commercial towers in Ajman – have received a tremendous response at Cityscape Dubai 2008. Wave Residence 2 registered advanced interest valued at US$68 million, while the Tamara C and Starco towers were a significant attraction. “We are delighted with the superb response our latest beachfront projects have received at Cityscape Dubai,” said Georges Chehwane, CEO of Plus Properties. “Cityscape Dubai has proven to be a huge success this year. It is our observation that visitors to the exhibition this year are very discerning in their choice of properties, opting for projects that offer prime location and excellent investment opportunities.” Situated on the first row of developments directly on the beach, with a spectacular view of Palm Jebel Ali, Wave Residence-2 will be an exclusive residential concept. The freehold residential tower – Tamara C and the freezone commercial center – Starco will both be located strategically within Solidere’s Al Zorah development. These projects have been designed to cater to the growing demand for quality commercial and residential spaces in and around Ajman. Plus Properties will be among the first developers to start construction at the Madinat Al Arab-Waterfront and Al Zorah, Ajman. “We are committed to developing quality living and leisure concepts with high business potential across the region. The keen interest we’ve received for our projects serves to strengthen our belief that we are on the right track. We would like to thank the organizers of this premier event for putting forward such an excellent platform”, concluded Chehwane.
CITYSCAPE SOUNDBITE...
SANJAY TRIPATHI Marketing Director, Bloom Properties
How important was it for you to be present at this and other Cityscape events? It is the biggest B2B property show in the world and we are a UAE real estate developer, so this is an opportunity for us to showcase our local, regional and international projects
30 $ Cityscape official show daily $ Dubai 2008
DUBAI – An official from the Dubai Land Department has given an upbeat assessment of the emirate’s real estate market saying business is still brisk and there is no sign of a downturn. Mohamed Sultan Thani, assistant director general of the department, told Emirates Business 24/7: “Dubai is a small city, even if there is a price correction it will be small. Furthermore, even if there is an oversupply it can be absorbed in two or three years’ time.” The department is continuing to record sales transactions of properties worth an average of US$190 million a day and sometimes even up to US$400 million, which Thani said was a clear sign of a robust property market. He added: “When reports are published on the real estate sector, they have to be area-specific. In the real estate business, some areas perform well and some perform lesser than others. This does not mean the whole property market will see a downturn.”
Festival Centre gets makeover Major expansion of landmark water front retail resort DUBAI – Festival Centre, the landmark waterfront retail resort that forms the epicentre of Dubai Festival City, is now undergoing a 60,386 square metre expansion. The Collection, will comprise a carefully selected mix of over 170 premium boutiques, internationallyrecognised flagship anchors, five-star day spa, and will be the largest collection of luxury retailing in Dubai. The Collection will be directly connected to the prestigious Four Seasons Hotel Dubai Festival City, ensuring exposure to an affluent segment of guests. Moreover, located alongside Festival Marina and neighbouring waterfront pavilions, The Collection’s immediate catchment area encompasses the InterContinental Hotel Dubai Festival City, Crowne Plaza Dubai Festival City, InterContinental Residence Suites, The Event Centre, Four Seasons Golf Club and the forthcoming W Hotel. Stand 1D30
day three REVIEW
Asim Butt, Investment Banker, Dubai, UAE The crowds I have seen says it all. What has also surprised me is the number of foreign investors. Given the economic climate, it’s great
Ghanshyam Jadeja Planning Manager,
Mike de Graffenried, CEO, Qatar First
Dr Mohammed Alqahtany, Research and Franchise
Indu Projects, India
Investment Bank, Qatar
expert, UAE
I am here on a fact-finding mission for the Cityscape India show as my company is hoping to attend; but I really don’t think it can match Cityscape Dubai for scale
I’m interested in the whole development process. I’ve come here to learn and understand, but a lot of what I am seeing is notional.
Cityscape is showing great maturity now. What I would like to see in the future is more conference sessions in Arabic as well as English
Khaled al-Harthi, General Manager,
Lola Guivarch, Promoter,
Sariin, UAE
Nakheel, UAE
The projects have been most impressive. As an architect I am particularly interested in the more flamboyant projects like the new Nakheel Harbour & Tower
We expected a lot of interest in the tallest tower project but it has been tremendous. What is really interesting is that the same people have been coming back
Ali Faghieh, Manager, Tribes Real
Dennis Johnson, Architect, H2L2, UAE
Estate, Iran
The projects I have seen have been very attractive but it is important to have the right infrastructure in place. The needs of the population must also be addressed
I am from Iran and I have up to 50 people a month asking me how and where they can invest in Dubai. I think they would rather invest in Dubai than in their own country
Nancy Bruggemans, Commercial Manager, Nakheel, UAE This has been my first Cityscape and I’ve been very impressed with everything. However I would like to know more about the sustainability of projects
TALK OF THE SHOW Day three of the 2008 Cityscape Dubai showcase saw even more visitors pour through its doors in record-breaking numbers Dubai 2008 $ Cityscape official show daily
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update NEWS
Trade Centre District
DWTC ANNOUNCES COMMERCIAL PROJECTS Two major destinations to boost business base DUBAI – Dubai World Trade Centre is planning two large-scale commercial destinations to boost the emirate’s credentials as a global base for networking, business and lifestyle. Dubai Trade Centre Jebel Ali and Dubai Trade Centre District have been hailed by the company as two of the UAE’s most ambitious development plans to date. Dubai Trade Centre Jebel Ali is a seven-kilometresquare integrated commercial destination anchored by a one-square-kilometre major exhibition complex, Dubai Exhibition Centre (DBX). Close to the new Al Maktoum International Airport, DBX will have 120,000-square-metres of exhibition space at launch, growing to 300,000 square metres by the final phase, providing a modern venue that is capable of hosting the world’s largest and most prestigious events. The 100 percent increase in exhibition space provided by DBX will also allow the scope to increase the size of some of the region’s most successful trade events, such as Cityscape and Arab Health. Dubai Trade Centre District is positioned at the core of Dubai’s business and financial district, encompassing the current exhibition centre and surrounding areas and stretching along Sheikh Zayed Road to Emirates Towers. The district will create a new business quarter at the epicentre of the region’s most dynamic city, offering premium grade A office space, high-end retail and lifestyle
outlets; a range of luxury and business hotels and serviced apartments – all set in open terraces, and treelined promenades. Designed after careful analysis of industry demand and projected growth trends, the two new developments will reflect Dubai’s rapid transformation as a global economic powerhouse, the company said. The Dubai World Trade Centre’s CEO, Helal Saeed Almarri, said: “Dubai Trade Centre Jebel Ali and Dubai Trade Centre District form part of a strategic development plan that will position Dubai as the destination of choice for the global business tourism and networking sectors. “Furthermore, these two new developments will cement our position as a leader in the global events industry.” DWTC is working towards contributing to the ambitious Dubai Strategic Plan 2015, as laid out by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, and Prime Minister of the UAE and Ruler of Dubai, which looks to grow the Emirate’s GDP by 11 percent a year over the next eight years, with a focus on growing tourism numbers by 15 percent. Part of this will be driven by tourism and hospitality, with the convention and exhibition industry playing a major role in driving up business tourism numbers. DWTC is working towards a target of a one to 1.5 percent contribution to the emirate’s economy based on global benchmarks.
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industry report FOCUS
REAL ESTATE ACTIVITY REPORT AUGUST 2008: SAUDI ARABIA
GENERAL PRICE INDEX IN SAUDI ARABIA – TRENDS AND MOVEMENT Since July 2008, the index of deals concluded during August continued its drop, this time by 5.7 percent in the commercial buildings sector and commercial and residential land sector. The decline was caused by the investor movements influenced by demand trends. The volumes and values of deals are low in Riyadh. However, demand levels and volume and value of deals are on the up in the eastern province, namely in Al Khobar and Dammam, because of commercial and demographic growth, we must also take into consideration the fact that prices are well below prevailing rates in Riyadh, which led to a noticeable drop in price trends in general. In order to take advantage of the boom, demand for leasing investment land for varying periods has increased. Leasing and investment requires less money than purchase, which means that more investors are interested in this field within the Kingdom, leading to a decline in the volume of deals during August where the number of square metres transacted reached 6.7 million and the cash invested represented almost US$1.5 billion, a level incommensurate with market volume. The decline is a result of the summer recession as the volume and values of deals dropped. Cash in circulation in the Saudi market has begun to take other routes away from the capital markets and real estate market (within trading limits and ownership transfers for profit), which means waiting for further booms in other sectors where liquidity was geared. In particular this includes the commercial sector at domestic, regional and even global level, in view of the stability of returns in the sector and the diversity of its components, which provide the advantage of reducing risk depending on the degree of diversification. This also takes into account the fact that the Saudi real estate market has a lot to accomplish before it stabilises, or reaches saturation levels.
KSA PRICE INDEX MOVEMENT 1100
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TRENDS AND MOVEMENTS IN RESIDENTIAL LAND PRICES The prices of concluded deals fell by 6.2 percent during August with a cumulative rise of 3.4 percent since April, as a result of an increase in low-price deals, an indicator that low-price land outside residential areas in the capital have become the investors’ preference at a time when the average price is soaring. Additionally this was due to a rise in the number of owners, selling empty areas within residential land parcels, at the highest expected price. This of course affects the supply and the prevailing prices, where the average price per square metre reached US$177, a price within the average that prevailed in February, and which is still considered high and out of the reach of individual purchasing power. The volumes of deals dropped by 49.6 percent during August with a 52.8 percent decline in Riyadh, with transacted square metres totaling 2.7 million. In Dammam, which started to assume a considerable percentage, at times more than Riyadh, the amount of square metres transacted was 3.9 million, which shows the strength of demand in the area and which proves its ability to satisfy current demand and attract investment. Due to the decline in average prices and volume of deals, liquidity invested in the sector fell by 52.7 percent, to US$1.17 billion, with Dammam accounting for 29.5 percent (US$346 million), with the rest attributed to Riyadh. TRENDS AND MOVEMENT IN COMMERCIAL AND INVESTMENT LAND PRICES The average value of deals on the commercial and investment front fell by 4.9 percent in August, at a time when further drops are expected depending on the areas of implementation concentrated in major cities other than Riyadh, and also depending on levels of demand and recorded activity in the eastern region and high average prices in the capital, which equate to US$5,108. This price level will impact on activity levels and facilitate the ‘escape’ of domestic and foreign capital to other sectors. The recorded price level has led to higher levels of leasing investment land, as an interim solution to the problem of price hikes. Dammam recorded prices topping US$3,600 caused by strong demand, which means that prices are on the way to increasing rather than declining, to the benefit of all parties, and maintaining growth rates targeted by the Saudi economy.
The volumes of deals dropped by 65.5 percent, to include all areas at varying levels, led by Riyadh which dropped 69,000 square metres to end at 36,000. Although rates are high, the investment in the commercial and investment land sector is marked by high fluctuations. As a result, invested liquidity investment dropped by 67 percent to a total of US$160 million, whereas Dammam accounted for 40 percent (US$63.1 million). TRENDS AND MOVEMENT OF COMMERCIAL BUILDINGS (OFFICE) PRICES The value of deals concluded in the commercial buildings sector dropped by 6.3 percent during August as expected. The leasing rates, which are still acceptable, bear pressure on the monthly activity concluded within the sector. The price per square metre reached US$3,000 for commercial buildings and US$4,000 for offices, compared to US$1,400 in Dammam, which again proves its ability to attract more investment. The volume of deals fell by 64.7 percent, bringing the total to 43,000 square metres with Dammam assuming 59 percent of the total. With this, the volume of deals remains at extremely low levels in comparison with the magnitude of the giant Saudi market, specifically commercial buildings, taking into account the fact that ownership is the preserve of long- established Saudi companies and leasing is by non-Saudi companies. Liquidity invested fell sharply by 67 percent during August, at a total value of US$126 million, with Riyadh accounting for 80 percent, and deals concentrated on offices in the country’s capital. Data provided by Mazaya Real Estate Index
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industry report FOCUS
REAL ESTATE ACTIVITY REPORT AUGUST 2008: QATAR
GENERAL PRICE INDEX IN QATAR – TRENDS AND MOVEMENT The general price index covering deals concluded during August declined by 2.5 percent, with a cumulative rise of 4.4 percent since April, in reference to the easing of price increases, whether it was because of the drop in the number of deals or the various sites of implementation. Current demand is focused on sites and areas with low prices which are expected to rise owing to the reluctance of owners and investors to engage in buying, selling and leasing activity to combat supply decline and then raise prices in different increments. This poses a new challenge to the Qatari real estate market in particular, and the economy in general, as a result of high inflation and government spending on infrastructure, which is the basis for development. The volume of deals fell by 11.8 percent due to a drop in land, apartment and office supply while owners wait to secure higher prices. In the meantime, the gap between supply and demand that the commercial real estate sector faces is becoming wider where delays in connecting the essential services of electricity and water to the waiting completed towers, puts pressure on prices and limits supply. The volume of square metres transacted across all sectors reached 995,000, 88 percent of which went to the residential land sector, indicating its sizeable components and number of deals, and colossal projects aleady implemented. The commercial sector was able to maintain acceptable liquidity values nearing the levels seen last March despite a 15 percent drop, reaching US$934 million, 73 percent of which was attributed to the residential sector, 19.2 percent to the commercial sector and 7.8 percent by the commercial buildings (office) sector. The Qatari real estate market is noted to be undergoing a slight stabilisation in average prices and deal volumes both for direct and indirect reasons: the objectives of owners and investors to achieve the highest returns possible, and the shortage in supply due to nondelivery or servicing. Yet, prices remain the independent variable which controls all other trends in spite of legislation and controls set by the government.
TRENDS AND MOVEMENT IN RESIDENTIAL LAND PRICE The value of deals concluded on residential land plots during August fell by 6.2 percent with a cumulative rise of 3.6 percent, indicating a decline in the price of development implementation, which forced investors to seek locations with low prices. The average price of development implementation reached US$769 per square metre, placing the country third within the Gulf after Oman and Saudi Arabia, but fourth after Kuwait, the UAE and Bahrain, which shows that the Qatari residential land sector is still attracting Gulf investors at prevailing prices according to current and expected levels of activity and development. For the second month in a row, the volume of deals has declined by almost the same rates – 13.1 percent, thus reaching the levels seen in January. In fact, a pack of elements caused this to happen; foremost is soaring prices, especially in desirable locations. The shortage of supply also played a role where factors such as developing the infrastructure affected deals, even hampering their conclusion or leading to a rescinding of the agreement. The amount of square metres transacted amounted to 885,000. With this, the activity in the sector secured third place at Gulf level after Saudi Arabia and Oman, showing a high in demand levels. Liquidity invested also fell by 18.5 percent, affected by the decline in the prices and deal volume, reaching US$687 million, coming nearer to the levels seen last March, with no sharp rises since then. TRENDS AND MOVEMENT OF COMMERCIAL AND INVESTMENT LAND PRICES The deals concluded in the commercial and investment land sector dropped slightly by 0.3 percent, with a cumulative rise of 3.9 percent since March 2008. Average prices usually increase gradually, but no ups or downs have been recorded lately. Yet, the average price revolved in the range of just under US$2,000 per square metre, falling into fifth place after Kuwait, Saudi Arabia, Bahrain and the UAE. Commercial land prices are not expected to be affected by what is happening in other sectors as deals concluded have dropped, and the required liquidity is immense.
Deal volumes went up by 2.1 percent as a result of high activity levels and the stable prices of implementation, which pushes activities and deal numbers up from one month to the next. A new level of 93,000 transacted square metres was recorded. This has brought the activity to third place in the Gulf after the UAE and Oman. The values of deals went up by 1.8 percent as prices stabilised. The total liquidity circulated amounted to US$174 million. TRENDS AND MOVEMENT IN COMMERCIAL BUILDING (OFFICES) PRICES The prices of the deals concluded on the commercial buildings sector dropped slightly by 1.7 percent during August, while the cumulative rate increase reached 12.3 percent since April 2008. The deals recorded certain price jumps eclipsing the commercial land sector as owners were free to price the commercially-ready areas where comparisons are difficult due to location and finish quality. The US$4,000 per square metre rate placed Qatar second in market comparison after Bahrain. The volume of deals, however, dropped by 12.8 percent, bringing the cumulative rate increase to 184.7 percent since April, and the number of transacted square metres to 16,000. The monthly rate of fluctuation is seemingly up, according to demand where the sector’s components are affected by commercial activity, and taking into account the fact that commercial and financial competitiveness is at its highest among the countries of the region who endeavor to account for the lion’s share of activity. The values invested dropped by 14.3 percent, due to the drop in volumes and average price of deals, and the high degree of fluctuation in the number of deals, with commercial buildings as the benchmark. Total liquidity invested totalled The liquidity invested totalled US$66 million, a rate that brings Qatar to second position in the rankings after Saudi Arabia, and slightly eclipsing the commercial buildings sector in the UAE. Data provided by Mazaya Real Estate Index
QATAR PRICE INDEX MOVEMENT 3200
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DAILY TOPIC oxford business group
TOUTING FOR TRAVELLERS Yemen’s Tourism Promotion Council has set up its budget for 2009, as well as its plan for the next tourism season, with clear intentions to attract international travellers to supplement its perilously low GDP, according to a report by the Oxford Business Group Yemen is primarily a rural country, with 75 percent of the populace living outside urban areas. As the poorest country in the Middle East, it also suffers from severe development challenges, including water scarcity, high unemployment and an underdeveloped infrastructure. According to a recent report released by the Economic and Social Commission for Western Asia (ESCWA), economic growth in Yemen was estimated to be approximately 4.3 percent for 2007, which represents no change from 2006 and continues to fall short of the target set by the government. However, Yemen also has a significant number of high-income residents, as well as a large segment of the population living and working outside the country.
Many of these are now keen to invest in tangible assets, such as real estate. They remain the key investors and buyers in terms of real estate and construction. Yemen continues to be one of the least developed real estate markets in the Middle East and North Africa. There is also a serious lack of Grade A facilities in the retail, office, residential and, until recently, hospitality sectors, all of which are currently experiencing increasing demand, according to the Oxford Business Group (OBG) report to be released in The Market 2008 update. The lack of advanced infrastructure has been the major deterrent to international investment, with foreign cash inflows thus far having been directed almost exclusively at the oil and gas sector. However,
important measures directed by the government in building infrastructure have made a considerable difference, as has a pledge of US$4.7 billion from Gulf Cooperation Council (GCC) countries to help develop the country’s infrastructure. The largest foreign investments to date have been in real estate, with developers from the GCC having announced plans for the cities of Sana’a and Aden. The projects in Sana’a include Majid Al Futtaim’s Bab al Yemen, a mixed-use residential complex in the city centre, and Qatari Diar’s US$500 million Al Rayyan Hills project in the new suburb of Fajj Attan. In March 2008 the Emirates Investment Group (EIG) announced Sana’a Terraces and Sana’a East as its flagship
projects in Yemen. The US$500 million developments are part of a series of signature projects that EIG intends to establish in the country. Al Qudra, Emaar and Tameer are all expected to nurture a presence in the capital, according to OBG. In Aden, several large mixed-use developments are planned. The largest of these is Ferdosa, which is expected to receive an investment of US$10 billion. Yemen’s growing population has created an increased demand for housing. Demand for upmarket residential properties is mostly for villas, which most people choose to have built themselves, meaning that land is the most sought-after commodity in real estate. However, the biggest driver behind the residential property market in Yemen is the expatriate community, which is purchasing land on which to build villas in the south of Sana’a. Another factor encouraging expatriate investment is the weakening Yemeni riyal, which gives higher purchasing power to foreign currency holders. Yet foreigners are currently not allowed to purchase property in Yemen. The large, mixeduse real estate projects which are planned in Sana’a, Salalah
(
and some of the country’s islands will, however, be open to foreign purchasers. Large regional real estate investors are eyeing the Yemeni market, with Al Qudra, Diar, Emaar and Majid Al Futtaim all planning developments in the capital. Office space is arguably the most underdeveloped segment of the real estate market in Yemen, and one which could prove central to the country’s further development. With an economy which remains dependent on agriculture
to be allotted for offices has yet to be established. Hospitality and leisure development has been limited by a perceived danger to tourists from disaffected parts of Yemeni society. The government is now making serious efforts to entice tourists to Yemen, so far focusing mainly on visitors from GCC countries, who are attracted to Sana’a and Aden. The Ministry of Tourism recently reported that the number of tourist in the first quarter of 2008 had declined against the same period in
The largest foreign investments to date have been in real estate, with developers from the GCC having announced plans for the cities of Sana’a and Aden.
38 $ Cityscape official show daily $ Dubai 2008
and international companies establishing a substantial presence in the country, demand for formal, high-end office space has been low, but is now being stimulated by Yemen’s potential for liquid natural gas (LNG) production, according to the OBG report. The only Grade A office facility in the capital is found in the Sanaa Trade Centre (STC), which has an expanding waiting list. Many of the villas in the newly developed residential areas are also being rented as office space. Most tenants are international companies, embassies, international organisations and nongovernmental organisations. However, the situation is now changing, with new stock rising more quickly than in any other sector. Most mixed-use developments announced in Sana’a include commercial space, although the proportion
2007. However, the government is also trying hard to improve the tourism sector. Yemen’s Tourism Promotion Council has set up its budget for 2009, as well as its plan for the next tourism season, which will include participation in international travel trade exhibitions and the implementation of an investment promotion programme. In retail, the first international retail player in Yemen was EMKE Group’s Lulu Centre in Aden, which opened its doors in September 2006. The EMKE Group also established the 60,000 square metre Aden Mall. Based on gross leasable area, OBG estimates that air-conditioned mall space is around 0.0072 square metres per capita, a very small amount in comparison to the GCC average of 0.35 square metres. This is a telling reflection of the country’s lower per capita income.
OVERVIEW kuwait
MARKET OVERVIEW: KUWAIT City of Silk
In recent years Kuwaitâ&#x20AC;&#x2122;s economy has enjoyed increasing revenues from high oil prices as well as income from government assets abroad. The ministry of finance announced that for 2006-7, Kuwaitâ&#x20AC;&#x2122;s stock of foreign investments had reached US$250 billion and had generated US$29 billion of revenue. The Economist Intelligence Unit estimates that for 2008-9, fiscal revenue will come predominantly from the oil sector and from the proceeds of oil revenue invested abroad, and will reach US$119 billion. Although the Kuwaiti
the US$132 billion city is set to include the worldâ&#x20AC;&#x2122;s tallest tower, several designated zones or â&#x20AC;&#x2DC;citiesâ&#x20AC;&#x2122; for media, sport, culture, health and business, and is due to be completed by 2030. It will also include a National Wildlife Sanctuary and parks. The IMF estimates that Kuwait has the third highest GDP per capita in the Middle East of US$33,000. The population is increasing rapidly and has grown from 2.2 million in 2000 to 3.3 million in 2007. Over three-quarters of the population (78 percent) is aged between 15 and 64 years. As a result, the construction sector has
FDI Source: fDi Intelligence from the Financial Times REPORT HIGHLIGHTS t #FUXFFO +BOVBSZ BOE +VMZ G%J .BSLFUT SFDPSEFE a total of 76 investment projects from 72 companies t 5IF MFBEJOH TFDUPS XBT 'JOBODJBM 4FSWJDFT XIJDI accounted for 12 percent of projects t 5IF MFBEJOH CVTJOFTT BDUJWJUZ XBT 3FUBJM XIJDI BDDPVOUFE for 39 percent of projects t 5IF UPQ DPNQBOJFT BDDPVOUFE GPS QFSDFOU PG BMM investment projects with Hempel Group (Denmark), Dow Chemical (USA) and Barnies Coffee & Tea (USA) among the top 10
CAPEX US$BILLIONS
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2006
2007
government is investing to improve oil production and refining capacity the 2009-14 strategic plan aims to diversify the economy into areas outside the hydrocarbon sector. A recent report by the IMF recommended that Kuwait should â&#x20AC;&#x2DC;support private sectorled investment and growth by bringing capital market, companies, competition, public-private partnerships and privatisation laws in line with best international practiceâ&#x20AC;&#x2122;. As part of Kuwaitâ&#x20AC;&#x2122;s efforts to diversify its economy, it is undertaking a flagship development called City of Silk. Built on an area of 250 square kilometres and situated in Subiya opposite Kuwait City,
seen increasing levels of activity and residential property is the main driving force of demand. A report by Global Investment House shows real estate and construction accounted for six percent of Kuwaitâ&#x20AC;&#x2122;s GDP in 2006 and estimates that over the next five years the private sector will invest up to US$8 billion in real estate and construction. The residential market is the backbone of the Kuwaiti construction sector and accounts for approximately 67 percent of buildings. However, Kuwait has, so far, not opened up its real estate market in the same way as other Gulf nations, and currently foreigners are not able to buy or own property. This has created a growing rental market
40 $ Cityscape official show daily $ Dubai 2008
from the increasing number of expatriates, particularly for apartments. Inflation in housing rent increased from 1.7 percent JO +BOVBSZ UP QFSDFOU JO +VOF PG UIF TBNF ZFBS The freehold market is therefore driven by demand from Kuwaiti nationals. The government provides financial assistance for its citizens via the National Savings and Loans Bank in order to help anyone over the age of 21 to purchase property. With the increases in property prices, first time buyers are now looking for smaller properties. Data from Oxford Business Group (OBG) shows that the average property price is US$889,000 and developers say the biggest demand for property is in the price range between US$315,000 and US$420,000. Global Investment House anticipates significant under-supply in the residential market, with figures from the Public Authority for Housing Welfare showing 79,894 applications as of mid-2007 and a waiting list of 30,414 individuals for housing. The commercial sector has begun to develop as a result of the events taking place in Iraq, and the potential business opportunities arising from Iraqâ&#x20AC;&#x2122;s redevelopment. Kuwait is well-positioned to act as a base for companies wishing to access these new business opportunities and the commercial property sector has expanded in anticipation of this increased demand. However, OBG anticipates that there is likely to be a surplus by 2010 and there will be 450,000 square metres of office space by 2009. The shortfall of demand had led
to a decrease in office rates since mid-2007 from US$35 to US$42 per square metre, to US$28 to US$31.50 per square metre. Commercial Projects underway include the US$250 million Kuwait Business Town which will create a Central Business District with nine office towers, shopping malls, a convention centre and a hotel. The increasing number of expatriates and spending power of the local population has meant that the retail sector is experiencing significant growth. In 2007, the first phase of The Avenues Mall opened with a GLA of 160,000 square metres and investments
of approximately US$2 billion. Two further malls are being developed by Tamdeen Real Estate, 360 Kuwait with 75,000 square metres of retail space, and the Mall of Kuwait with over 150,000 square metres of space. According to Colliers International, the GLA of retail space will reach 1.15 million square metres by the end of 2010. In 2006 the average annual rent was US$635 to US$1,140 and, by 2006, had increased by approximately 17 percent year-on-year. Although not previously considered a major tourist destination, as part of Kuwaitâ&#x20AC;&#x2122;s
economic diversification, a 20-year tourism master plan is being developed in co-ordination with the World Tourism Organisation and United Nations Development Programme. Kuwait is hoping to position itself as an inbound GCC business tourism destination with an emphasis on business traveller meetings and exhibitions. Data from OBG shows that from 2004 onwards, 70 permits were issued for hotels, of which 22 are under active construction. The number of hotel rooms currently stands at 4,600 but OBG anticipates this could increase to as many as 16,000.
Market data YIELDS BY ASSET CLASS % Office Residential - villa Residentials - apartment Retail Hospitality
2005
2006
2007
10 8.5 11 10 N/A
10 8.5 10 10 N/A
10.5 8.5 10 10.5 N/A
SUPPLY Sector Residential (No. of Units) Office (GLA m2) (Manama) Retail (GLA m2) (Manama) Hospitality (4&5 Star Rooms) (Manama)
2004
2005
2006
2007
2008e
2009e
2010e
131,215 140,793 151,071 162,100 173,933 186,630 200,254 287,980 304,436 312,664 289,626 304,107 319,312 335,278 218,339 243,339 291,439 367,939 801,607 1,035,057 1,181,057 3,843
4,419
5,082
Supply figures are total of Kuwait Office Supply - Grade A, Retail Supply - Shopping Malls e = expected, f = forecast
5,845
6,721
7,730
8,889
oman OVERVIEW
MARKET OVERVIEW: OMAN Over the last few years, the Oman economy has continued its vigorous growth and experienced GDP growth of 5.7 percent in 2006. Surpluses from high oil prices have enabled the country’s government to undertake a programme of economic reform in a bid to diversify the economy away from reliance on declining oil and gas reserves. Oman has signed several free trade agreements as part of the government’s continued push for economic diversification through the development of infrastructure, manufacturing, tourism, commercial and residential projects. The government is promoting greater private sector involvement in the water and electricity sectors. It has also embarked on a programme of ‘Omanisation’ to increase the number of Omani nationals employed across all sector and, as a result, education
and training is a major focus for the government. Oman has a population of approximately 2.6 million and is growing at a rate of 3.2 percent, with per capita GDP at US$19,000. High liquidity and population growth have led to continued expansion of the construction sector and the value of construction projects under development in 2007 was approximately US$30 billion. In 2006, a law was introduced allowing foreigners to purchase property in certain designated areas and the influx of expatriate workers has also contributed to rising demand for real estate. A report by Global Investment House states that projects such The Wave, Blue City, Yitti and Muscat Golf and Country Club have attracted investments of between US$10 to US$12 billion, and are driving demand. Residential unit prices have doubled in Muscat in
recent years and data from Oxford Business Group (OBG) shows that average prices have increased from US$195 to US$260 per square metre in 2004 to US$390 to US$520 per square metre in 2007. Prices for prestigious developments such as The Wave, range between US$2,300 to US$4,400. Monthly rentals for a two bedroom apartment in Shining Shati, the latest development to come onto the market, are approximately US$2,200. Some of the larger projects under development include Blue City (Al Madina A’Zarqa) with 6,000 residential units, The Wave with 4,000 residential units and Omagine with 3,900 residential units. When completed, the six largest projects will provide an additional 17,660 units. Oman’s large industrial and tourism projects have attracted foreign investment
Market data YIELDS BY ASSET CLASS % Office Residential Retail Hospitality
2005
2006
2007
10 10 N/A N/A
10 8.5 N/A 6
11 9 7 7
SUPPLY Sector Residential (No. of Units) Office (GLA m2) (Muscat) Retail (GLA m2) (Muscat) Hospitality (4&5 Star Rooms) (Muscat)
2004
2005
2006
2007
2008e
2009e
2010e
440,715 450,653 460,815 471,207 481,832 492,698 503,808 86,384
90,703
95,238 100,000 105,000 110,250 115,763
157,143 182,007 246,448 284,896 309,396 365,996 365,996 2,990
3,105
3,426
Supply figures are total of Oman Office Supply - Grade A, Retail Supply - Shopping Malls e = expected, f = forecast
4,106
4,572
5,205
5,986
and an increasing numbers of companies into the country. As a result, demand for commercial space is steadily increasing, and OBG data shows that monthly rental rates for offices increased from US$6.5 per square metre to US$29 per square metre in 2006. Sale prices have risen from US$390 to US$520, to US$780 up to US$1,040 in 2007. A number of buildings are under development and mixed-used developments such as The Wave, Muriya and Al Khuwayr have a provision for commercial space. OBG estimates that a total of 150,000 square metres of space is due to be released over the next three years, although this is unlikely to satisfy future demand. Until recently, the retail sector in Oman remained relatively underdeveloped but rising incomes, increases in the number of international visitors and increasing demand for international brands has resulted in the launch of several new retail developments. According to figures from Retail International, at the end of 2007 approximately 68,000 square metres of new gross leasable area (GLA) had been planned for retail space, and it is anticipated that another 75,000 square metres is scheduled to be completed by 2011. The Muscat Grand Mall is being constructed in the Al Khuwair district of the capital and will cover 61,000 square metres of prime real estate. It is part of the Tilal Al Khuwair development project and includes commercial, residential and retail space (due for completion in 2009). Retail leasing rates vary according to location, and OBG calculates an average square metre rent of US$26 to US$31, and space in higherend shopping malls at around US$41.6 up to US$49.4.
FDI
Source: FDi Intelligence from the Financial Times Figures from January 2003 to August 2008 REPORT HIGHLIGHTS t #FUXFFO +BOVBSZ BOE +VMZ G%J .BSLFUT recorded a total of 116 investment projects from 94 companies t 5IF MFBEJOH TFDUPS XBT 'JOBODJBM 4FSWJDFT XIJDI accounted for 16 percent of projects t 5IF MFBEJOH CVTJOFTT BDUJWJUZ XBT .BOVGBDUVSJOH XIJDI accounted for 18 percent of projects t 5IF UPQ UFO DPNQBOJFT BDDPVOUFE GPS QFSDFOU PG BMM investment projects with EMKE Group (UAE), Landmark Group (UAE) and Orascom Group (Egypt) among the top 10 companies t 5IF UPQ UXP EFTUJOBUJPO DJUJFT GPS JOXBSE JOWFTUNFOU XFSF Muscat and Suhar, providing 32 percent and nine percent investment projects respectively
CAPEX US$BILLIONS 4.00
3.00
2.00
1.00
0.84
1.09
4.50
2006
2007
2008
Two malls are being developed in Sohar a 36,000square-metre project by the Safeer Group and the Al Masa Mall, by the Sharaf Group, which opened in late2006. Capitalising on the success of its free zone and increased tourism activity, the first large-scale shopping centre in Salalah is also being developed by United Real Estate Company. Tourism in Oman has grown impressively and the government aims to increase the contribution of tourism to GDP from 0.3 percent in 2003 to 1.4 percent of GDP by 2010 and three percent by 2020. In order to achieve these targets, the government budget for the promotion of tourism has increased from US$10 million to more than US$30 million. Demand for hotel rooms has continued to outstrip supply, and OBG figures indicate that the RevPar in Muscat has risen by 52.8 percent to US$152. Room capacity is expected to double by 2012 and a number of large mixed-use projects are under development which will include hotels, marinas,
retail centres, golf courses and other leisure facilities. Yenkit Tourism Development is developing a US$2 billion integrated resort which will consist of four five-star hotels, golf facilities, a beach club and nature reserve. The project is in response to the government initiative to create a tourism corridor stretching along the coast from Muscat to the southern city of Sur. The Muscat Golf and Country Club is a residential and leisure development which is also attracting considerable investor interest. According to OBG, the number of rooms in Grade A hotels currently stands at 2,144 and four-star hotels provide another 1,500 rooms. It is estimated that over 1,000 rooms will be required every year in the next three years to meet forecasted demand. Oman is focusing on high-end resort tourism, with the prime market continuing to be defined by the Shangri-La Barr Al Jissah which has enjoyed an average occupancy of 65 percent since its opening in February 2006.
Master plan of The Wave, Muscat
Dubai 2008 $ Cityscape official show daily
$ 41
cocktail party EVENT
(L - R): Paul Scoble, IIR Middle East; Melissa Harris and Patricia Brown, UKIP Business Television
(L - R): Samer Halabi, Mark Bayyari, KONE; Hasan Hamshari, Hapco Group; Khalaf Al-Maddan and Yazan Abu Suleiman, KONE
(L - R): Johannes de Long, KONE; Richard Vaughan, VSH International; and Esa Maenpaa, KONE
(L - R): Peter Norgaard, Jonathan Kinsley, Cathy Lee, Courtney Davies, Andrea Viana and Matthew McCallum, Arquitectonica
A NIGHT OF NETWORKING
The annual Cityscape Dubai Cocktail Party was a fitting finale to wrap up three days of interactive social events. Delegates headed to the popular Mina Aâ&#x20AC;&#x2122;Salam hotel on the Jumeirah coastline for an invitation-only night of networking, music and magic.
Dubai 2008 $ Cityscape official show daily
$ 43
EVENT cocktail party
(L - R) Gordon Thomson, Formation Architects; Mohamed Mohideen, KONE; and Christopher Ginter, Nasa Multiplex
(L - R): Jean-Marc, Sama Dubai; Danielle Grossenbacher, Brown Harris Stevens: and Emily Crutcher, Jones Lang LaSalle
Tracey and Conrad Bingham, Conrad Bingham
(L - R): Annika Yamashita, VSH International; Francis Tan and Mahar Mallah, ALDAR; Marina Vlasyuk, Rustar; and Eriny Derkach
(L - R): Lindsay Urquhart, Kate Owens and Krista Shearer, Bespoke Worldwide
44 $ Cityscape official show daily $ Dubai 2008
(L - R): Joanna Michalak, Polish Economic Development Office; Omar Abdel Razek, Gulf International Cancer Center; Ghizlane Remmal, Era Projects; and Saadia Hassan, Manazel
REVIEW day three
AJAY RAJENDRAN, Vice Chairman, Sobha Real Estate Group
What do you think were this year’s hot topics? The media has been rife with news of a correction in property prices. In the short- term, pessimism born out of this will have a marginal effect. I believe that globally, realty markets tend to have a short-term memory. With industry specific exhibitions like Cityscape, one will definitely see a return of customer confidence
HUSSEIN FAKIH CEO, Mina Al Fajer
What have been this year’s hot topics? Investors have been looking at new growth areas, as well as environmental sustainability issues which have become a major concern for a growing number of developers, including us. This is why from the onset we have chosen to develop a concept that seamlessly incorporates nature into our project to reflect our commitment to preserving the beauty of nature and harnessing its potential for sustainable development
MR WONG HEANG FINE CEO, CapitaLand
How important was it for you to be present at this and other Cityscape events? Cityscape is one of the most important and influential property exhibitions in the region, combining both industry and general public focus into four days of intense competition for the attention of the attendees. As a platform for networking and knowledge sharing, it is unparalleled, and thus it is one of our target industry events for both this year and the next few years
FROM THE SHOW FLOOR The Cityscape team spoke to visitors and exhibitors from the region, and beyond, to get their opinions on another exciting day of industry interaction throughout the eleven exhibition halls. For the third day running, the feedback was unanimous on the event’s continued success 46 $ Cityscape official show daily $ Dubai 2008