Gulf Property February 2017 by Gulf Property

Gulf Property 20 ,0

00 Go

CO PIE S

FRE E ea CIR ro f p CU The region’s premier monthly for lifestyle, real estate and construction ub lis L A hin g TIO N! ing str on gi nt he 9th y

VOL. 9, NO. 5 FEBRUARY, 2017

Developers gain, contractors lose in 2016 SPECIAL FEATURES Dubai economy to grow at 3.1%

26,707 new companies licensed in 2016

Dubai Investments to inject Dh5.5bn in industrial projects

Bounces Back! Disruptive solutions to fastforward India’s growth

With Dh42bn deals in 45 days, Dubai property market

360-degree business intelligence allows you to focus on driving value from assets across your entire commercial portfolio.

COMMERCIAL Asset and Property Management Software YARDI VoyagerÂŽ 7S Centralise your property data to minimise risk and deliver key performance metrics, while using mobile technology

Social. Mobile. Smart.

to revolutionise interaction with prospects and residents.

To learn more, call + 971-4-4322679 or visit www.yardi.ae

I WANT TO EXPAND MY INVESTMENT PORTFOLIO

T H E HO M E O F REAL ESTATE INVESTMENT Cityscape Abu Dhabi, the capital’s largest and most influential property exhibition is back. Brin B ging together investors, developers, government officialss and real estate professionals, there is no better place to find investment opportunitties and new business partnerss. With hundreds of developments from Abu Dhabi and overseas being showcased d, Cityscape Abu Dhabi 2017 is the t home of real estate investment. e

Regisster now for FREE entry +971 4 336 5161 Oﬃcial Arabic Newspaper

Regional TV News Partner

Abu Dhabi National Exhibition Centre, UAE

info@ @cityscapeabudhabi.com Research P Partner

Business Publication

www.cityscapea abudhabi.com

Oﬃciall Russian Publication

Media Partner

Organised by

DUBAI: P.O Box 11529, Jebel Ali, Dubai UAE, Tel: +971 4 815 8888, Fax: +971 4 815 8111, ABU DHABI: Tel: +971 2 502 7777 OMAN Tel: +968 24629981/82/83, KSA Tel: +966 3 835 5305, QATAR Tel: +974 4005 3000, BAHRAIN Tel: +973 177 497 61 AEI CABLES LTD Tel: +44 191 410 3111, Email : ducab@ducab.com, sales@ducab.com Website : www.ducab.com

I WANT TO EXPAND MY INVESTMENT PORTFOLIO

THE HOME OF REAL ESTATE INVESTMENT After a very successful inaugural show, the second edition of Cityscape Turkey, Turkeyâ&#x20AC;&#x2122;s most influential international real estate exhibition, is back. Bringing together investors, developers, and real estate professionals, there is no better place to find investment opportunities and new business partners. Cityscape Turkey is your opportunity to access the Turkish and regional real estate and investment community all under one roof.

23-25 MARCH 2017 Istanbul Congress Center

Supporting Association

Content Partner

i n fo @ c i t ys c a p e t u r ke y . c o m

Turkish Newspaper

Business Magazines

Broadcasting Partner

Online Media Partner

International Broadcasting Partner

w w w . c i t ys c a p e t u r ke y . c o m

Industry Publication

Media Partner

Knowledge Partner

Organized By

Regional Media Partner

In Cooperation with

This trade exhibition is organised with authorisation from the Union of Chambers and Commodity exchanges of Turkey (T.O.B.B.) in compliance with law no5174

PA AY Y 70% AFTER COMPLETION** FURNISHED AND SERVICED BOUTIQUE VILLAS IN A GOLF COMUNITY

FROM AED 1.35 MILLION*

I nspired by the affluent London distric t, K ensington, this communit y of boutique villas at AKOYA Ox ygen offers a sophisticated way of life with grand architec ture, manicured outdoor spaces and bursts of colour ful flora. You can also earn great returns by joining our rental pool.

LO OCAT TED IN AN INTERNAT TIONAL GOLF COMMUNIT Y

*Te erms & conditions aplly. ** 35% on completion and 35% witthin 360 days after completion

+971 4 301 9999 | DAMACPROP PERTIES.COM

thum mbaybuilders

thumbaytv

L e a d i n g Co Leading C onstruct o n sst r u ccttion tion C Company o mpany m p a nyy Our dedicated team of professiona als offer services in real esttate, designing, maintenan nce and construction. We are recognized as one of the finest, most trustted and highly regarded companies o , deliv vering premium projects an nd developments.

Head Office P. O. Box - 415555, DIFC, Dubai, United Arab Emirates, +971-4-2985555, +971-4-2989555, + info@thumb baybuilders.com www.thumbaybuilders.com m

I WANT TO EXPAND MY INVESTMENT PORTFOLIO

THE HOME OF F REAL ESTATE INVESTMENT Cityscape Qatar is the only international real estate investment event in the State of Qatar. Bringing together investors, developers, homebuyers, government oﬃcials and real estate professionals, there is no better place to ﬁnd investors and new business partners. Whether you are a real estate developer, broker or real estate service provider, Cityscape Qatar provides a unique opportunity to access the Qatari and regional real estate and investment community all under one roof.

info@cityscapeqatar.com m Organisers

13 -15 MARCH 2017 DOHA EXHIBITION AND CONVENTION CENTER, DOHA, QATAR

www.cityscapeqatar.com

Gulf Property I P O 0C

N! O I UT B I TR S I E9Dth year E R ES F in the

are The regionâ&#x20AC;&#x2122;s premier We monthly for lifestyle, real estate and construction

0 0 , 0 2 Advertisement Rates Effective from January 2017 till December 2017 Size

Dimension In centimetres Front Gate Fold H: 27.5 X W: 40 Outside Back Cover H: 27.5 X W: 20.5 Inside Front Cover H: 27.5 X W: 20.5 Inside Back Cover H: 27.5 X W: 20.5 Double Spread H: 28.1 X W: 41.6 Full Page H: 27.5 X W: 20.5 Half Page H: 13.5 X W: 20.5 Cover Appearance H: 29.7 X W: 20.5

Single Insertion Rate [$/AED] 8,000/30,000 6,000/22,000 4,000/15,000 4,000/15,000 5,000/18,300 3,000/11,000 1,500/5,500 20,000/75,000

Six Insertions Rate [$/AED] 40,000/150,000 30,000/110,000 20,000/75,000 20,000/75,000 25,000/91,000 15,000/55,000 7,500/25,000

Rate in US$ 20,000

Rate in AED 75,000

12 Insertions Rate [$/AED] 80,000/300,000 60,000/220,000 40,000/150,000 40,000/150,000 50,000/183,000 30,000/110,000 15,000/55,000

Kindly Note: 1. All pages are of full-colour glossy paper 2. Materials deadlines to be strictly adhered to 4. Rates for annual bookings are subject to availability and negotiation

Sponsorship No. 1.

Description Section sponsorship

Special Report/Supplement

Special Reports and supplements on mega projects, country reports, sectoral reports and to celebrate corporate milestones/anniversaries of major corporations/players To be attached/added to each copies of the main magazine No Description Rate All rates are per issue (Once a year) in US$ 1. A12-page corporate supplement (Insert) 10,000 2. A20-page supplement (Insert) 15,000 3. A40-page A-4 book (Detached) 40,000

Online Sponsorship

Rate in AED 37,000 55,000 145,000

Gulf Property has a dynamic website that will help advertisers and the real estate developer community to reach a worldwide audience. Description Rate in US$ Section sponsor (Per month) 5,000 Section sponsor (Per year) 50,000 The rates are tentative and are subjected to change.

For all inquiries, kindly contact: Pan Asian Media MFZ LLC P.O. Box 39865, Dubai, UAE Tel : +9714 2281021 Fax : +9714 2281051 E-mail : editor@panasian1.com : gulfproperty@ymail.com Website : www.gulfpropertyme.com

Rate in AED 18,300 183,000

Media Facts

Size Date of publication Circulation Material deadline Subscription Distribution Availability

: W: 20.5 cm X H: 27.5 cm : 1st of each month : 20,000 per month : 20th of every month : Dh250 per year : Through subscription and retail sales : Major newspaper and magazine stands, retail outlets, books and stationary shops, duty free outlets, etc

EDITORIAL

Dubai real estate market bounces back With Dh42 billion worth of transactions in 45 days through Dubai Land Department, the emirates real estate market appears to be on a roll. However, are we out of the wood, yet? Is it too early to rejoice?

t looks like the good times are back! Dubai Land Department said, it processed Dh42 billion worth of transactions in the first 45 days of the year. If things move at this rate, then the emirate might witness Dh340 billion (US$93 billion) worth of property deals by the end of the year – which is higher than most countries’ gross domestic product (GDP), when compared separately. The Land Department had earlier concluded Dh12 billion worth of transactions in two weeks - or just 10 working days!

Despite the challenging economic environment, the real estate developers have done quite well for themselves. Emaar Properties reported Dh5.2 billion net profits while Nakheel recorded its highest annual profits of Dh4.96 billion. Damac Properties has recorded a decline in profits, yet making Dh3.7 billion in net income in 2016. These three developers have generated a total of Dh13.86 billion net profits in 2016. Among the other developers, Deyaar has also done quite well to increase both revenues and profits.

CONTENTS

COVERSTORY

Dubai added 26,707 new companies in 2016

INTERVIEW

EXECUTIVEOPINION

Christine Lagarde/IMF Mohanad Alwadiya/Harbor Mahmood Shaikhani/ Shaikhani Group Noorul Asif/Schon Dhiren Gupta/Mortgage 4C

COVERSTORY

Dubai Investments to invest Dh5.5 billion in industries 46 Dubai Investments attracts Dh50 billion investment 50 Disruptive solutions to fast forward India: KEF 52 30 31

INTERVIEW

Although Dubai Properties and some other developers, such as Meraas have not announced results, they are expanding portfolio despite the current situation. Both the developers are strengthening their rental and retail leasing portfolio to make the business more sustainable.

Although there are signs of upturn in the market – it is not out of the woods yet. Challenges continue to remain as new deliveries would add to the existing glut in the market. Those delivered projects and could not sell, have started to offer them at a very attractive prices. So, those having money with deep pockets – should cash in on the new opportunities.

– T. Akhtar

INTERVIEW

PROJECTNEWS

DP fast-tracks 1/JBR 58 Danube to deliver 831 units 60 Gemini fast-tracks Splendor 62 Ducab lab to fix cable fire 64 Sobha executes Dh44bn worth of projects in the pipeline 66

PERFORMANCE

In Abu Dhabi, Aldar Properties and Manazel Real Estate – both have announced increase in net profits.

However, some of the leading contractors have had a tough time managing the businesses, including the publicly-listed Arabtec Holding and Drake and Scull International – both running at losses. While Arabtec has expanded losses to more than Dh3.4 billion, Drake and Scull has managed to reduce it from the 2015 year level.

33 34 35

Property deal value declines to Dh259 billion in 2016 36 Indian investment falls 40% in Dubai realty in 2016 40 Dubai economy to grow at 3.1 per cent in 2017 42

Developers gain while contractors lose in 2016

Realty Bytes Spotlight

14 78

REGULARFEATURES

GULF PROPERTY

LICENCE

EDITORIAL

EDITORIAL AND COMMERCIAL ADDRESS

The region’s premier monthly for lifestyle, real estate, construction and building materials

EDITOR T. Akhtar editor@panasian1.com REPORTER/SUB-EDITOR Diana Fernandez d.fernandez@panasian1.com

PUBLISHER

T. Akhtar Pan Asian Media MFZ LLC

Licenced by RAK Media City, authorised by the National Media Council. Gulf Property is a publication of Pan Asian Media MFZ-LLC

Pan Asian Media MFZ-LLC P.O. Box No.: 39865. Dubai, UAE Tel : (9714) 2281021 Fax : (9714) 2281051 E-mail editor@panasian1.com Web www.gulfpropertyme.com

CIRCULATION 20,000 copies

Gulf Property

REALTYBYTES “The January Purchasing Managers’ Index data shows that output and new order growth remains strong, and the improvement in export demand last month is particularly welcome after a relatively soft 2016. The rise in the Dubai Economy Tracker index in January to its highest level in nearly two years was mainly due to faster expansion in output and new orders. While some of the improvement was attributed to new projects, price discounting is still playing a significant part in supporting demand.”

– Khatija Haque Head of MENA Research Emirates NBD

Gulf Property

UAE private sector shows signs of strong growth

PMI shows economy on solid growth path

AE’s private sector showed a solid improvement in the non-oil sector, according to the Emirates NBD UAE Purchasing Manager’s Index (PMI) – a composite indicator designed to give an accurate overview of operating conditions in the non-oil private sector economy. It’s January data signalled a solid improvement in the health of the UAE’s nonoil private sector. “Underpinning the latest upturn were expansions in output and new work, with the latter supported by improved foreign demand,” it said. In response to increased new business, companies raised their payroll numbers for the ninth straight month. On the price front, data highlighted divergent trends in January as firms continued to cut their prices charged in spite of a faster rise in cost burdens.

The survey, sponsored by Emirates NBD and produced by IHS Markit, contains original data collected from a monthly survey of business conditions in the UAE non-oil private sector. The report’s key findings showed output expands at sharp rate while new order growth accelerates to fastest since September 2015 and firms continue to cut their charges, despite stronger cost inflation. Rising from 55.0 in December to 55.3 in January, the headline seasonally adjusted Emirates NBD UAE PMI posted the highest reading since July 2016. That signalled a notable improvement in the health of the sector, particularly in the context of the trends over 2016 (53.9) and the survey as a whole (54.5). The upward movement in the headline index was supported by a sharper increase

in new work during January, with new business rising at the quickest rate in 16 months. On the jobs front, a further increase in payroll numbers failed to alleviate pressures on operating capacity. Khatija Haque, Head of MENA Research at Emirates NBD, said. “The January PMI data shows that output and new order growth remains strong, and the improvement in export demand last month is particularly welcome after a relatively soft 2016.” Latest survey data pointed to mounting cost pressures in the UAE’s non-oil private sector. Sharp input price inflation was predominantly driven by a marked increase in purchasing prices as staff costs rose only slightly. Finally, UAE non-oil private sector businesses remained optimistic towards the 12month outlook for output at the start of the year. g

Dubai’s private sector signals robust growth

Private sector in Dubai shows strong growth, according to Emirates NBD tracker

mirates NBD Dubai Economy Tracker Index January data signalled the strongest improvement in nonoil private sector business conditions for nearly two years. Emirates NBD Dubai Economy Tracker Index – a composite indicator designed to give an accurate overview of operating conditions in the non-oil private sector economy registered 57.1 at the start of the year, up from 55.9 to signal the fastest rate of improvement in 23 months. Furthermore, all the three key sub-sectors monitored by the survey recorded marked rates of expansion. By sector, travel and tourism remained the best performing category at the start of the year (index at 57.8), closely followed by wholesale and retail (57.7) and construction (55.4). The headline Emirates NBD Dubai Economy Tracker Index is derived from individual diffusion indices which measure changes in

output, new orders, employment, suppliers’ delivery times and stocks of purchased goods. A reading of below 50.0 indicates that the non-oil private sector economy is generally declining; above 50.0, that it is generally expanding. A reading of 50.0 signals no change. The survey covers the Dubai nonoil private sector economy, with additional sector data published for travel & tourism, wholesale and retail and construction. Khatija Haque, Head of MENA Research at Emirates NBD, said: “The rise in the Dubai Economy Tracker index in January to its highest level in nearly two years was mainly due to faster expansion in output and new orders. While some of the improvement was attributed to new projects, price discounting is still playing a significant part in supporting demand.” Private sector business activity in Dubai picked up sharply in January, with the pace of growth accelerating

to a 23-month high. The latest reading was also stronger than the series average. The wholesale & retail sector signalled the strongest rate of activity growth in seven months, with some firms linking the increase to promotional activities to stimulate client demand. Meanwhile, construction firms widely cited new projects as the principal factor behind the increase in output. Despite the steep increase in business activity, job creation was modest overall, although the pace of staff hiring picked up slightly since December. Mirroring the trend for business activity, January data signalled greater amounts of new work for the eleventh month in succession. Moreover, the latest increase in new business was the fastest since March 2015. Dubai private sector companies remained optimistic about their prospects for activity growth over the next year. g

REALTYBYTES

Dubai to issue regular report on real estate

ubai Land Department (DLD) has signed a Memorandum of Understanding (MoU) with Dubai Economic Council (DEC), to collaboratively prepare a detailed annual report on the prospects for the real estate sector in Dubai. The MoU for the report entitled "The prospects for the Real Estate Sector in Dubai" was signed by Sultan Bin Mejren, director general of DLD, and Hani Rashid Al Hamli, secretary general of DEC. Bin Mejren said: "This project is a progression of our long-standing and ongoing strategic partnership with Dubai Economic Council, which has involved collaborating on several projects such as reports and studies on the real estate sector in Dubai, and launching joint initiatives that aim to strengthen the role of the sector in Dubai's economy.This will allow us to maintain the attractiveness of Dubai's real estate sector and remain leaders in the competitive global market," Bin Mejren added. Real estate sector's contribution to Dubai's GDP exceeds 13 per cent. The data will be taken from DLD's database, and used as a basis for further analyses related to the sustainability of the real estate market and to enhance the sector’s competitiveness. g Gulf Property

REALTYBYTES Abu Dhabi approves projects worth $83m

bu Dhabi Executive Council has approved development projects worth Dh304 million ($83 million) as part of its plans to boost the infrastructure in the UAE capital, said a report. One of the major projects that has been given the go-ahead by the council is a Dh74-million preliminary and earthworks contract for the commercial enclave in Medinat Zayed, Abu Dhabi City, reported state news agency Wam. The project will be built over an area of 1,500 hectares and is expected to accommodate 300,000 residents, in addition to 325,000 of business staff. The council meeting also approved the infrastructure works for an intelligent transportation system in Al Ain at a cost of Dh114 million ($31 million), according to the report. The project aims to improve public safety on the main roads of Al Ain by using intelligent systems for early detection and response to accidents. This will help reduce congestion and subsequent delays, and also minimise emissions.said the Wam report. A key contract for the renovation and expansion of the existing central suq in Madinat Zayed area was also given the green signal besides the development of public parks in Abu Dhabi, it added. g

Gulf Property

Dubai ranks highest in score among the GCC cities in the Global Cities of the Future report

Dubai top global City of the Future: Report

ubai ranks first in a latest report on Global Cities of the Future by AT Kearney. The city is increasingly regarded as a global and regional leader in business activity, human capital, information exchange, and cultural experience. According to the global management consulting firm’s report, Dubai is one the world’s top five cities for imports and exports, and serves as the major business trading hub in the GCC region. Home to Emirates airline and two international airports, Dubai is also a major destination for international tourism. The city scores high in human capital, with a variety of international schools and many foreignborn residents. The report also noted that recent changes in public sector administration will serve

Dubai and the UAE well, with future-oriented and innovative concepts such as the State Minister of Happiness and Tolerance. The newly launched Dubai Industrial Strategy 2030 aims to transform the city into a global platform for knowledgebased, sustainable, innovation-focused businesses. Foreign direct investment continues to push the city’s business activities to global levels, while entrepreneurship and private investments are beginning to shape a culture of innovation. Michael Romkey, principal with AT Kearney, said: “Dubai is a fantastic example of how a city has been forward-looking, building on its robust progress in many areas to position itself as a leading global city. It has a high growth potential among the cities in the GCC region across all dimensions and

continues to capitalize on its current capabilities and position. Its current ranking in the market is a testament to what has already been done and the groundwork implemented for continued success.” New York, London and Paris remain unchallenged as the world’s most global cities, although the attractiveness of London as a global hub may change in the future given the Brexit vote. Meanwhile, the report identifies Melbourne, San Francisco and Geneva as cities that could make great leaps forward in the coming years, driven by changing policies and a shifting landscape. The report provides an assessment of the global engagement, measuring how engaged each city is in five dimensions – business activity, human capital, information exchange, cultural experience and politics. g

REALTYBYTES At A Glance 4,000

construction projects are currently active in Dubai

$313 billion

value of all projects currently under planning, development and construction in Dubai

$245 billion

value of all projects in Dubai

$92 billion

Dubai’s project pipeline value hits Dh1.15 trillion value of all active construction projects in Dubai as at Dec 31, 2016

ubai’s strong construction trends look set to continue through 2017 according to BNC’s Construction Analytics across five market sectors indicating a positive year ahead with a total of 4,000 active projects ongoing amounting to a total estimated value of $313.6 billion (Dh1.15 trillion). This includes projects that are in the concept, design, tender, under construction and on-hold phases, and constitutes 39 per cent of the number of active projects in the UAE and 42 per cent of the total estimated value of all active projects in the UAE. According to BNC’s Dubai

Dh1.5 tr value of all projects under planning, development and construction in Dubai

Overview Report published in January 2017, the urban construction sector has more than 3,200 active projects amounting to a combined estimated value of over $245 billion. This is followed by the transport sector with 187 projects valued at $32.4 billion, the utilities industry with

203 projects valued at $24.3 billion, 377 industrial projects valued at $5.8 billion, and 12 projects in the oil and gas sector totalling $4.6 billion. Some of Dubai’s current multi-billion dollar projects include Dubai Metro Red Line Extension which is a part of the Expo 2020 initiative,

Container Terminal 4 of the Jebel Ali Port Expansion project and the Royal Atlantis Resort and Residences located in Palm Jumeirah. The significant announcement of the ‘Dubai Harbour’ project by H.H. Sheikh Mohammed Bin Rashid Al Maktoum in January 2017 will see the construction of an impressive waterfront development spanning more than 20 million square feet. December 2016 saw 37 active projects worth an estimated $2.2 billion moving to construction in Dubai. As of the end of 2016, the total number of projects under construction was 2,508 with an estimated worth of around $92 billion. g Gulf Property

REALTYBYTES

DREI unveils new awards

ubai Real Estate Institute (DREI) has officially announced the launch of its Global Real Estate Research and Innovation Awards, as part of its ambitious Real Estate Research and Innovation Strategy 2021. The initiative demonstrates the institute’s commitment to encouraging research and innovation in the real estate sector, and was announced in the presence of leaders and innovators from the GCC’s real estate community. The initiative aims to further the future of real estate by promoting research and innovation in the sector. This will involve the development of knowledge sharing platforms for the real estate community, encouraging research projects, and supporting the work of laboratories in Dubai and the UAE. Project financing will be managed in collaboration with academic institutions, and supported by sponsors and leaders from the real estate sector. Mahmoud Al Burai, Executive Director of DREI stated: “The Global Real Estate Research and Innovation Awards is a particularly important part of our wider strategy, as it invites the world’s greatest minds to submit research that will raise the bar for the global real estate industry. We are proud to be launching the awards program in partnership with some of the world’s most prestigious real estate institutes.” g

Gulf Property

Al Hamra sells homes at Dh3,300 installment DREAM HOME AT DH3,300 PER MONTH! Property buyers could move in to their dream home by paying Dh3,300 per month installment, from Al Hamra Real Estate

l Hamra Real Estate Development to attract potential buyers with five-year payment plan on a range of ready-to-move-in luxury properties; prices start from Dh3,300 per month Ras Al Khaimah’s largest real estate developer, Al Hamra Real Estate Development (AHRED), has launched a new payment plan for its much sought-after Al Hamra Village properties. Potential buyers can own properties in the luxury development from just AED3,300 per month over a five-year period. This compares to Dh55,000 for the annual rent of a studio apartment in Dubai’s Jumeirah Lake Towers; Dh50,000 in Dubai Marina; and Dh70,000 in Jumeirah Beach Residence according to the Asteco Q3 2016 Dubai Real Estate Report. The report also highlighted a rise in Ras Al Khaimah prices, with average rents increasing by up to 2 per cent between the sec-

ond and the third quarters in 2016. The new payment plan, with a range of property options including studio, one, two and three bedroom apartments, villas, and townhouses, will appeal to buyers seeking attributes ideal for families, a peaceful, stress free environment and slightly slower pace of life with quality entertainment, dining, retail and education options. Barry Ebrahimy, head of commercial services, said: “This is an excellent opportunity for people to own a property in the luxurious Al Hamra Village development, which offers a quality build and a relaxed lifestyle. The pricing scheme is designed to provide outstanding value for money and the chance to live in one of the most enviable locations in the UAE.” Located in the New Ras Al Khaimah, Al Hamra Village is just 45 minutes away from Dubai, offering attractive ownership costs across the company portfolio. The integrated community comprises

over 4,000 residential units, five luxury hotels, Al Hamra Golf Course, Al Hamra Marina and Yacht Club and Al Hamra Mall, plus a diverse range of international restaurants to choose from. Ebrahimy said: “We are very close to 100 per cent occupancy at Al Hamra Village, with only a few remaining units left, that is why we have decided to launch this campaign and help people renting make the transition into home ownership. “We’re an attractive proposition for investors, end users and tenants. These are not off-plan or under-construction properties investors will receive after three-to-five years – these properties are ready to move in now. Investors can move in after making the down payment and enjoy the property, while making the regular payments over the next five years, unlike buying off-plan where investors still pay rent while making payments on the new property, therefore saving on this additional expenditure.” g

Finnish Admares to build Dubai water homes

innish-owned Admares will build water homes for the Phase 1 of the Marasi Business Bay development in Dubai, a further groundbreaking Emirates project featuring homes on water and restaurants with direct water views and an exclusive yacht club. The Marasi Business Bay is being developed by Dubai Properties, a leading Dubaibased real estate master developer and asset manager known for renowned destinations across the Emirate, and is destined to become a major landmark in Dubai. The Admares scope of work will include 10 water homes, 2 restaurants and an exclusive yacht club, all of which are state-of-the-art floating buildings. These unique architectural structures will be designed, managed and manufactured in Finland by Admares, ensuring impeccable quality that can be achieved when construction takes place in a purpose-built production fa-

“Our objective is to create unique, innovative and environmentally friendly real estate products, utilizing ground breaking, multi-disciplinary off-site construction technology...”

– Mikael Hedberg Admares CEO

cility with a workforce that specialises in construction of floating real estate. The entire Marasi Business Bay area will include the longest waterfront promenade in the Emirates and the UAE’s first-ever homes on water with pedestrian and boat access, as well as restaurants, leisure facilities and five palm tree-lined yacht marinas with approximately 700 berths, alongside more than floating retail and food and beverage outlets, an assortment of onshore boutique shopping, leisure and entertainment facilities as well as a range of local and international busi-

nesses. Located on the Dubai Water Canal, Marasi Business Bay is set to become a major future landmark in Dubai – an unprecedented unique waterside destination concept in the UAE and the Middle East. The development’s main architectural feature will be the homes on water designed and manufactured by Admares in Finland. A forward thinking innovation in residential development, each home will enjoy exclusive boat access and unrivalled views of the surrounding Dubai Water Canal. g

REALTYBYTES

Jeddah: Mega projects in the offing

audi government has launched three major infrastructure projects in the port city of Jeddah including the Corniche Tram which is parallel to Jeddah's Northern Corniche Road, said a report. Besides this, the government also plans to develop a marine taxi network that will link Sharm Obhur area with central and northern Jeddah, and a key bridge which links north Obhur with south Obhurm, reported the Saudi Gazette, citing a top official. These public transport projects are vital for the Makkah and Jeddah region, as it provides an easy service to pilgrims and visitors to the Grand Mosque, remarked Prince Khaled Al Faisal, adviser to Custodian of the Two Holy Mosques and Emir of Makkah, while speaking at the ministerial committee meeting. On the Makkah project, it will implemented in two phases. The first one will be the metro service for Haj and Umrah pilgrims around the year, and second, network of fast transport buses that boasts 60 stations to serve the Grand Mosque. The public transport project in Jeddah comprises a train and a bus network. About 30 per cent of the design work for Jeddah public transport has been completed. Five sites have been allocated for the construction of metro stations. g Gulf Property

REALTYBYTES

Meraas offers Bvlgari

ubai’s most exclusive residential community Bulgari Residences are now available for viewing, with the first show apartment having been unveiled. Bulgari Residences will be part of The Bulgari Resort and Residences Dubai, a first-of-its-kind master development in scale and magnitude. Spreading over 1.7 million square feet and framed by lush landscaped gardens, the luxury marine complex will be the world’s sixth Bulgari Hotels and Resorts property. The 168 apartments range from one to three bedrooms; there are also six fourbedroom penthouses and 15 mansions which range from three to six bedroom properties. g

Core Savills to sell Bluewaters

eraas has appointed Core Savills as the exclusive agent for the sale of luxury residences at its waterfront destination Bluewaters, a vibrant cosmopolitan island that will also be home to Ain Dubai, the world’s largest observation wheel. . Bluewaters is a familyoriented destination with a spirit that blends waterfront living with the exhilaration of urban life. It will have 150 retail and dining concepts, two hotels, and entertainment experiences g

Gulf Property

GCC rail project value hits $240bn

he total value of GCC railway projects pipeline reached more than $240 billion at present, with $69 billion worth of projects currently under construction, according to a report. In terms of overall expenditure on rail, Saudi Arabia and the UAE are spearheading the regional growth. As of January 2017, the kingdom had registered the highest rail construction project value of 50 per cent, followed by the UAE (18 per cent) and Qatar (17 per cent), according to a report produced by Terrapinn Middle East in collaboration with leading construction projects tracker Ventures Onsite. Key projects expected to be awarded to contractors in the Saudi market in 2017 are Zulfi-Al Majmaah Passenger Railway, North South Rail Waad Al Shimal-Turaif-Al

$69bn worth of rail projects are now under construction

Jouf (ST320), Makkah Mass Rail Transit (MMRT) – Makkah Metro, it stated. The planned investments of $30 billion in the UAE's railway networks include that of Abu Dhabi Metro and Light Rail, skyTran Yas Island, the next stages of the Etihad Rail national network, the Dubai Metro extension for Expo 2020 and the new stages of the Al-Sufouh Tram, said the report released ahead of Middle East Rail, a major in-

dustry event being organised by Terrapinn Middle East in Dubai. "Within the next 10 years, we will see a complete reform of mobility across emerging markets," remarked Jamie Hosie, the event director. "Congested urban roads, increasing populations and the need for seamless trade corridors continue to drive immense investment in the railway sector - and with the effects of low oil prices subsiding, new projects, extensions, upgrades and improvements are back on track," he stated. The Middle East and North Africa (Mena), Central Asia and South Asia hold the largest selection of freight and urban transport projects across the globe, with over $642 billion worth of planned railway investments, said the organsiers. g

Rezidor to open 17 hotels in ME in 2017

arlson Rezidor Hotel Group, one of the fastest growing hotel companies is set to open 17 hotels this year, across the Middle East region. The global hotel operator will add over 3,000 rooms to its existing portfolio of 8,500 rooms in the Middle East. The hotel openings are concentrated across the UAE and Saudi Arabia, reinforcing its brand presence in prime locations across the GCC. Mark Willis, Area Vice President, Middle East andTurkey, Rezidor Hotel Group said, “With 17 hotels opening across the Middle East we are seeing the fruits of our team’s work over the last few years, and the continued trust from our owners to manage their asset. With our anticipated growth in 2017 the Group remains firmly on track to have 100 hotels and

20,000 rooms in operation by 2020,” Willis added. The hotel openings in the UAE, will see Carlson Rezidor add almost 1,000 rooms to its operating portfolio, making it 13 hotels and 3,000 rooms in operation, by the end of 2017. This includes the opening of Radisson Blu Hotel, Dubai Waterfront, the Group’s most prominent opening in Dubai in recent years. The 432 room hotel with stunning views of the Burj Khalifa has a prime location at Dubai Water Canal, within Business Bay, and will showcase a number of exciting new restaurants and bars. Meanwhile, another high profile opening in the UAE is Park Inn by Radisson Hotel, Motor City, which is set to open by Q3 2017 when Radisson Blu Residence, Silicon Oasis and Radisson Blu Hotel, Ajman are set to open

their doors. While looking further ahead Radisson Blu Hotel, Dubai Canal View is scheduled to open in the first quarter of 2018 and is the sister property to the Radisson Blu Hotel Dubai Waterfront, as the Group further strengthens its presence in prime locations across the emirates. With 30 hotels and over 6,000 rooms in operation and in development, in Saudi Arabia, 2017 marks the Group’s first hotel opening in the Holy City of Makkah, with Park Inn by Radisson Hotel, Makkah Al Naseem. The 462 room hotel for religious travellers is located about 103 kilometres from King Abdulaziz International Airport (JED) and scheduled to open in Q2 this year. A total of six openings are scheduled for the Radisson Blu brand. It will also introduce the Park Inn brand to Jeddah later this year. g

REALTYBYTES

EREF gets Dh700m ENBD facility

mirates Real Estate Fund (EREF) has agreed a $190.6 million (Dh700 million) Shari’a compliant finance facility with Emirates NBD, on attractive commercial terms. The partially undrawn facility is a five-year, profitonly Mudarabah facility with a 10 per cent repayment of principal in its fourth year. Post utilisation and full draw down of the facility the loan-to-value ratio of the fund is expected to be below 50 per cent. The new facility will help contribute to restructuring the balance sheet and creating a more efficient capital structure with the aim of ultimately enhancing returns to investors. EREF’s fund manager, Emirates NBD Asset Management, has earmarked a portion of the partially undrawn facility for future acquisitions. Over the last 24 months the fund has invested over $163 million in real estate acquisitions including Binghatti Terraces in Dubai Silicon Oasis, Arabian Oryx House in Al Barsha Heights, part of Burj Daman Office Tower in the DIFC and a residential building in Remraam, Dubailand. EREF is an openedended Shari’a compliant real estate fund focused on investing in incomeproducing real estate assets. The fund is managed by Emirates NBD Asset Management. g Gulf Property

REALTYBYTES

Nakheel invests Dh150 million in cycle tracks

akheel said, it is investing Dh150 million to bring 105 kilometres of bicycle tracks to its communities across Dubai, with all routes linked to the Government’s Cycling Master Plan. Safe, scenic bike routes are being created to encourage recreational cycling and promote health and wellbeing among families and individuals of all ages as part of Nakheel’s commitment to enhancing its developments with new facilities and services. The developer is also building a 10 km ‘super loop’ – for more experienced riders – as part of its cycle route network. The Nakheel Communities Cycling Masterplan will be constructed over the next two years, with phased delivery between now and Q2 2019. Nakheel plans a series of subsequent bike tracks once the first 105 kilometres are completed. Work is already under way on a 5 kilometre track at Nakheel’s new Nad Al Sheba community, currently under construction along Sheikh Mohammed Bin Zayed Road in Dubai. Other developments covered by phase one are Jumeirah Islands, Jumeirah Heights, Jumeirah Park, Jumeirah Village, Al Furjan, The Gardens, Discovery Gardens and Garden View Villas. g

Gulf Property

Nakheel adds Avani to its hotel portfolio

Avani to operate the new hotel attached to Ibn Battuta Mall

akheel and Thailand’s Minor Hotels have signed a management agreement for a new 372-room hotel to be constructed at Ibn Battuta Mall. Under the agreement, the hotel will be managed under the vibrant Avani Hotels and Resorts brand, which offers guests relaxed comfort and contemporary style in city and resort destinations. The 18-storey hotel – for which a construction contract will be awarded in February this year – is the second Nakheel hotel at Ibn Battuta and one of 16 in the developer’s hospitality project portfolio. Adjacent to the recently-opened Ibn Battuta Metro Link, which is directly connected to the mall, the hotel will feature a pool, spa, gym, all day dining restaurant, coffee shop and parking.

Nakheel to tender out Dh5bn worth of projects

Nakheel is inviting construction proposals for Deira Islands Boulevard, its new, Dh5 billion community for 10,000 people, to be built at Deira Islands in Dubai. Nakheel will release a tender for the construction of 2,924 apartments and townhouses in 16 residential towers spread across four clusters.

Minor Hotels’ portfolio currently comprises more than 20,000 rooms across 156 hotels, resorts and serviced suites in 24 countries under the Anantara, Avani, Per Aquum, Oaks, Tivoli, Elewana, Four Seasons, Mar-

riott, St Regis, Radisson Blu and Minor International brands. Avani Ibn Battuta is the second Nakheel hotel at the mall. The first, a 372-room Premier Inn, opened last year. The hotels are part of Nakheel’s ongoing expansion at Ibn Battuta Mall, the first phase of which was completed last year with the opening of a 300,000 square feet extension and 210 metre link to the Dubai Metro. The mall currently has 400 shops, restaurants and entertainment outlets across 1.5 million square feet of retail space, with phase two of the expansion under way. Nakheel has more than 5,300 rooms across a diverse range of hospitality projects. Two are already complete and operational, with the rest at various stages of construction and development. g

Another tough year ahead for realty

he UAE’s real estate sector faces another difficult year after a correction in 2016, Standard and Poors Global Ratings said in a report published recently. With the fallout from low oil prices and continued currency woes, it is no surprise that 2016 was a tough year for the real estate market. The UAE is considerably dependent on oil with 30 per cent of GDP derived from oilrelated activates, despite many measures to diversify its economy, especially in Abu Dhabi (50 per cent of GDP). With oil at about $50$55 per barrel--which is just half of what it used to be at its 2014 peak--economies are still adjusting to the new price environment both on the revenue and expenditure side. Dubai’s economy has very little direct dependence on

oil, however, indirect effects of low oil prices in 2016 include diminishing purchasing power, weakened investor sentiment leading to lower investments from the region, and slowing business activities of non-oil private companies. Dubai's residential prices dropped by 8-11 per cent on average and rent fell by 6 per cent according to Reidin.com, with most areas of the city affected. The strength of the dollar is also making the UAE increasingly expensive for tourists and low oil prices in 2016 have diminished purchasing power and weakened investor sentiment. “We expect residential prices and rents to fall by another 5%-10% in Dubai in 2017. In 2016, approximately 15,000 housing units were delivered in Dubai, according to Jones Lang LaSalle’s 2016 report, adding 3% to

overall supply. In 2017, the two largest rated developers – Emaar Properties and Damac – together representing about 35%-40% of total project launches, are expected to deliver between 5,000-5,500 units in Dubai,” the report says. “Assuming the remaining competitors deliver a slightly lower volume, the market may absorb a residential supply of at least 10,00011,000 units in 2017, which is more or less in line with the long-term average. We therefore do not expect this steady supply to act as a catalyst to currency effects, but could potentially add further downward pressure on residential prices. While we think a decline in sale prices is likely to affect the older stock more than the newly-built units, this is subject to localisation.” The UAE is becoming in-

REALTYBYTES creasingly expensive for tourists and shoppers as the US dollar continues to appreciate. Along with the pound, the euro, Chinese yuan renminbi, and Indian rupee have declined by 3%, 7%, and 2%, respectively. If currency pressures persist, Dubai could potentially lose its coveted status as an international shopper's paradise and have to concentrate its customer base on GCC travellers, the report said. “The profile of visitors is shifting to a value-conscious tourist who might spend less per trip than a tourist the year before. This thwarts growth in the retail, restaurant, hospitality, and entertainment sectors. Therefore, international retailers will need to adjust prices in the market to keep shoppers spending.” The pound declined by 17 per centversus the US dollar in the past 12 months due to Brexit fears. The evolution of the pound remains a concern for the UAE as the UK is traditionally among the top three source markets for visitors to Dubai, and UK nationals were the fourth largest investor in residential real estate in the first half of 2016. “For 2017, we see no signs of market improvement for the UAE real estate sector, despite housing affordability improving from the current price environment,” the report says. However, not everything is negative. While 2016 was a tumultuous year, some positives can be drawn. Tourist arrivals remained resilient, even growing by 4 per cent to 13.3 million (year-to-date November 2016), according to the Department of Tourism and Commerce Marketing (DTCM). g Gulf Property

REALTYBYTES

Jumeirah Golf Estates sells villas for Dh1.3m Jumeirah Golf Estates is offering townhouses for as low as Dh1.3 million

umeirah Golf Estates, an award-winning residential golf development in the heart of new Dubai, announces the launch of Alandalus Townhouses – a collection of 95 contemporary homes inspired by Andalusian architecture – in its affordable luxury community, Alandalus. Following the success of the apartments as part of the community – with over 75 per cent of the properties sold since the launch in May 2015 – Jumeirah Golf Estates expands its portfolio of affordable-luxury properties, presenting a gated community with a collection of two and three-bedroom townhouses starting from Dh 1.3 million. Yousuf Kazim, CEO of Jumeirah Golf Estates, said: “We have increased the number of townhouses in the

Gulf Property

community to meet the strong demand for mid-market homes in Dubai, providing an even more diverse real estate proposition within Jumeirah Golf Estates. “The neighbourhood boasts charm and tranquility, and will undoubtedly set the standard for a unique family home in this vibrant city.” Showcasing an Andalusian theme through its planning, architectural features and its rich landscape, the unique combination of graceful design and creative arrangement at Alandalus offers an uncompromised lifestyle ensuring quality and affluence at an affordable price. The 95 townhouses, expected for completion in September 2018, have been carefully designed to feature clear defined open spaces flooded with natural light, combining modern and tradi-

tional Andalusian materials for a sophisticated, functional and comfortable space. Each townhouse will have a private outdoor terrace including an optional plunge pool and patio area – an essential element for family living and sociable lifestyle – complementing the surroundings that include fascinating water features, breathtaking landscaping of Mediterranean olive and citrus trees. Launched in 2015 in response to an increase in demand for affordable housing in the UAE, Alandalus has received an overwhelming response from investors as well as end-users. Jumeirah Golf Estates has worked closely with real estate agents to discuss its Alandalus development and held an exclusive event this week granting brokers access to

preview official plans for the Andalusian-inspired townhouses. Phil Sheridan, Chief Executive, Fine and Country said: “The addition of Alandalus Townhouses to the Jumeirah Golf Estates community is most definitely value adding to one of Dubai’s most desirable residential communities. We have been overwhelmed by the level of buying interest in Alandalus to date, as endusers and investors identify with the benefits of living within a world class destination with superior facilities, at attractive pricing levels and flexible payment plans.” The townhouse development is the latest addition to the mixed-use community, which also encompasses 715 apartments, a hotel and community retail center, making this a complete integrated community. g

DLD unifies house rent agreements

ll residential rent agreements and commercial leases will be conducted through an unified lease form and agreement from March 15, 2017. Dubai Land Department (DLD) said the launch of its Unified Lease Form, contracts which will become a mandatory procedure starting March 2017. “In line with DLD’s aim to create a transparent and professional real estate market with measurable standards, the new form has been designed to regulate relationships between all parties involved in real estate transactions and guarantees the rights of all parties,” it says. “DLD encourages landlords to download and print contracts from the Ejari official website (www.ejari.ae), and provides assurance that all items included within such contracts are based upon a legal framework that regulates relationships and transactions.” Items within the contract, and the relationship it determines between parties are governed by laws, including rental laws that regulate the imposition of penalties to be applied if there are any problems. Parties to the contract agreement should agree on items that meet their needs upon signing the lease for the first time. Mohammed Ahmed Yahya, Deputy CEO Rental Affairs Sector, DLD said: "The adoption of the unified lease form comes within the framework of our continuous efforts to

embed principles of transparency and benefit all parties in the real estate market. Dubai has managed to acquire a prestigious position because of the stability the city provides in terms of investments, work and daily life. This latest step by DLD contributes further to consolidating Dubai’s positive image across the globe." The document also refers to Law No. 33 of 2008 that regulates the relationship between landlords and tenants of Dubai real estate, specifically clause No. 25, which specifies the cases that enable the landlord to evict the tenant from the property. Such incidences can include subleasing of the property, or in the case of using the property for carrying out prohibited or illegal activities. Mahmood Shaikhani, Managing Director of Shaikhani Group, says, “This is a long overdue process and will help bring in more transparency in the market. We welcome this move. Standardisation is very essential for developing systems and processes that gives the consumers a clear guideline and helps settle things. “As the government is promoting best practices in line with the best standards in the world, this initiative is in line with the future direction of Dubai and the UAE. In fact, we feel, there should be a unified document and procedure across the country – that establishes set standards and forms across the country.” Hamdan Al Madhani, Direc-

tor of Rental Relations Regulatory Department, said: “The applied unified lease form primarily depends on the legal system, and having unified contracts between the parties guarantees the rights of all stakeholders involved. The Rental Affairs Sector carries responsibility through its department mechanisms to apply the new unified lease contract, in addition to registering leases and tracking the real estate index. This body also develops rules, policies and strategies that facilitate the movement of the sector, in addition to monitoring the real estate market.” DLD has created specialised committees to monitor the variables of the real estate market and rental sector carrying out a review programme in accordance with the laws and regulations. Citing Law No. 26 issued in 2007, DLD say that under the terms of the lease the landlord is responsible for property maintenance repair work, and repair of any damage or defect that may affect the wellbeing of the tenant within the premise. In this case the law stipulates the landlord’s responsibility for all maintenance work in all cases. Noorul Asif, Chief Operating Officer of Schon Properties, says, “In order to promote best practices and improve transparency, governments need to standardise processes and documentation. We see the move as a step towards the right direction. Last year, Dubai Land Department

REALTYBYTES

processed 490,000 lease documents through its Ejari system. In future, this number is going to go up as developers continue to supply new homes. “Unified lease form will help streamline the process and falls in line with the government’s overall development vision. As a developer, we welcome the move.” g Gulf Property

REALTYBYTES

DLD website gets 6.5 m visitors

ubai Land Department has announced that its website saw a significant increase in traffic last year, receiving over 6.5 million visitors over the course of 2016. The improvements made to the website by DLD, including added features to ensure ease of browsing and the provision of services in six major international languages – Arabic, English, Spanish, Chinese, French and Russian – are thought to be behind the boost in visitor numbers. DLD’s Rental Increase Calculator was the most used website service in 2016, allowing customers to calculate the rental increase of leased property. g

Opus gets recognition

ubai-based property developer Omniyat’s visually impressive Opus Tower development has been lauded by global design authority Architectural Digest magazine. The Zaha Hadid-designed development in Dubai was named in the publication’s recent list of ‘9 of the Most Striking Skyscrapers. Located in the Burj Khalifa District, the project is due for completion this year and will be home to the ME Dubai Hotel by Melia Group of Hotels. g

Gulf Property

Mamsha Al Saadiyat racing on fast track

ourism Development & Investment Company (TDIC), master developer of major tourism, cultural and residential destinations in Abu Dhabi, said, construction of Mamsha Al Saadiyat, on the Saadiyat Cultural District, is well underway, with the development works completion of 21.9 per cent. The project was awarded to a joint venture between San Jose Contracting and Pivot Engineering and General Contracting back in April 2016, following a competitive tendering process. The contract is valued at Dh1.25 billion. Sufian Al Marzooqi, TDIC’s Chief Executive Officer, said: “It is inspiring to witness the rapid development works of Mamsha Al Saadiyat, being executed in line with the preset schedule and a completion date set for completion during the second half of

2018.” “Mamsha Al Saadiyat enjoys a strategic location with unparalleled views to the Saadiyat Cultural District, a key attraction for investors looking to own unique residential units in the Capital.” The construction progressed with completion of basement and podium, and has reached the upper floors in the buildings. The TDIC is monitoring and supervising all the developmental phases "Mamsha Al Saadiyat" to ensure timely execution. Mamsha Al Saadiyat is a beachfront mixed-use project, incorporates nine lowrise residential buildings with a total number of 461 units, ranging from one to four medium sized bedroom apartments, between 110 square metres to 450 square metres. The project also offers unique loft apartments with uninterrupted sea views. Nine penthouse units of 5

bedrooms with an average size of 1050 sq. m, feature a private swimming pool and a terrace. The project offer residents a luxurious beach-inspired lifestyle with close proximity to a wide range of leisure and retail offerings. “Mamsha Al Saadiyat” is connected to a 1.4 kilometres promenade with dedicated walking and cycling paths, direct access to the beach, children’s playgrounds, and dedicated parking for both residents and visitors. Mamsha Al Saadiyat is located at the heart of Saadiyat Cultural District, a cultural hub with renowned organisations including Zayed National Museum, Louvre Abu Dhabi and Guggenheim Abu Dhabi. Saadiyat Island has become home to world-class developments such as The St. Regis Resort and Spa, Residents of the island live in close proximity to high-quality educational institutions. g

Aldar fast-tracks Al Raha Beach projects

ldar Properties, Abu Dhabi's leading listed property development, investment and management company, provides an update across its development portfolio. Steady progress is being made across all projects, with Yas Island’s Ansam and Al Raha Beach’s Al Hadeel moving closer towards completion and handover in 2017. The sold out Al Hadeel which sits on the seafront of Al Raha Beach, complements Al Bandar’s suite of existing luxury residences. Featuring 233 units, the façade glazing is entering its final stages with internal fixtures and fit-out progressing accordingly.

Ansam, an Andalusianstyle apartment development on the West side of Yas Island, is also close to completing façade glazing, with MEP installations progressing well. The community offers premier living and leisure facilities and its first phase consists of 547 units overlooking the Yas Links golf course and the Yas Island waterfront. Elsewhere on Yas Island, construction activity continues. At West Yas, two of the mock-up villas are now complete, and will be opened to the public in the coming weeks, with all villas at various stages of completion. Early works are ongoing at Mayan, Aldar’s luxury golf and waterfront apartment de-

velopment, with the main contract package expected to be awarded by the second quarter this year. At Yas Acres, enabling works have commenced in order to ready the site for the award of the main contract by the end of June 2017. At Shams Abu Dhabi on Al Reem Island, the Shams Closed Canal is now nearing completion along with the public realm streetscape. Also on Al Reem Island, at Shams Meera, Aldar’s first mid-market project, construction activity is on-going with the focus currently on steel reinforcements and foundation work, as well as columns and walls for the basement levels. g

the enabling stage. In Dubai, the group launched the Cayan Arjaan Hotel Apartments in November at a press conference, during which it revealed that the residential tower of the Cayan Cantara project would also be managed and operated by renowned hospitality brand Rotana under their ‘Residences’ badge. Sales of units in both Samaya in Riyadh and Cayan Cantara in Dubai have been remarkable with each averaging 50 per cent sold, which leave us with a positive outlook for 2017. However, much like in 2016, the main focus for

Cayan Group for 2017 remains its core business which is the development of iconic real estate. With three mega projects in the pipeline, Cayan Group continues to lead the way as the masterdeveloper of choice in the Arab world. The group’s notable regional projects for 2017 will include a mixeduse development in Riyadh and an waterfront development in Jeddah. On an international level, aside from the la Mairena project in Spain, Cayan Group will launch a mixed-use project in London, United Kingdom. g

Cayan Group project value hits Dh5.5bn

ayan Group, a Saudi property developer, said it has SR5.5 billion worth of ongoing projects

in 2016. Throughout 2016, Cayan Group surged ahead with planned projects and made steady progress in both construction and sales. In Riyadh, the CMC Tower’s enabling and structural packages were completed in May within three and six months respectively. In addition, it launched Samaya project, a mixed-use development located in Riyadh and the project is currently in the midst of

REALTYBYTES

Adnec brings Dh3bn economic impact

bu Dhabi National Exhibitions Company (ADNEC) revealed that its key venues including Abu Dhabi National Exhibition Centre and Al Ain Convention Centre (AACC) collectively welcomed more than 1.516 million visitors across 480 local and international events in 2016. This represents an increase of 30 per cent growth over 2015. This translates into a total economic impact of Dh3 billion for the emirate of Abu Dhabi. Emiratisation at ADNEC exceeds 60 per cent, 82 per cent of company’s senior managers are Emiratis. ADNEC contributed to creation of 16,844 jobs, 528,639 guest nights for hospitality sector in 2016 In 2016, Abu Dhabi National Exhibition Centre and Al Ain Convention Centre hosted 43 exhibitions including 15 new additions, marking a 10 per cent surge. Meanwhile, the total number of conferences hosted by the venues in 2016 increased by five per cent to 22. ExCeL London, a subsidiary of ADNEC, welcomed 2.8 million visitors across 367 events by end2016, compared to 313 events in 2015. The hotels owned by ADNEC Group – Hyatt Capital Gate, Aloft Abu Dhabi and Aloft London ExCeL – delivered solid results on the back of strong performance. g Gulf Property

REALTYBYTES

Aqarat Dubai sees higher Saudi interest

qaratdubai.ae, is a leading Arabic Real Estate portal which provides its users with the most up to date information regarding Dubai Real Estate Market. The site displays property options exclusively from Dubai’s real estate developers. Additionally, the portal has very active legal and news sections.Aqaratdubai’s user base is comprised of investors from GCC and other Arab nations. g

Cityscape Qatar

nforma Exhibitions and Elan, the organisers of Cityscape Qatar 2017 have confirmed that a number of leading local, regional and international construction, development and real estate companies will be participating in the upcoming exhibition. Now in its sixth year, Cityscape Qatar 2017 – the largest property exhibition in the state, will be held from March 13-15, 2017 at the Doha Exhibition and Convention Center, right in the centre of Doha’s business district. The 2016 edition of Cityscape Qatar ended on a high note and attracted 92 real estate companies exhibiting along with 6,633 participants over the course of the three day event. g

Gulf Property

Celebrating success

Al Thuriah records Dh5bn investment

l Thuriah Properties, the UAE’s premier property developer that specialises in high-rise residential towers and building communities, announced that it had crossed the milestone of delivering 100 million square feet of built up property to the UAE market. As it celebrates its 20th Anniversary, the company, whose head count crossed 1,000 employees, also announced that its projects attracted an investment of more than Dh5 billion into the UAE’s property sector. Almost 70 per cent of its clients are recurring investors and owners. Al Thuriah also announced a major restructuring of its operations to better address opportunities in the UAE property sector. Operations are now split into four distinct divisions - Properties, Construction, Leasing and Facilities Management.

These divisions will be autonomous but will draw upon the significant strengths that the company has acquired over its long-standing commitment to the UAE. To demonstrate the agility of its new divisions and the difference these operations bring to the market, Al Thuriah Leasing announced that it now provides clients with a 48-hour leasing process with a hassle-free service for the all its 11 residential and mixed-use projects. Al Thuriah Facilities Management commits to a 5minute response time for clients that own or rent a property in its more than 42 projects. Al Thuriah Properties continues its developments and has added more projects in the Al Khan and Al Nahda areas of Sharjah. It expects to add on more development areas across the UAE shortly. The last successful project it launched

was in September 2016. The Sahara Tower 6 is the final jewel in the crown of Sahara Complex, a master development with a built-up area of 3,100,000 square feet that includes 1,384 apartments. Al Thuriah Construction has created 25 projects for various clients across the UAE and is geared up to work 24/7 to deliver ahead of schedule, committing to safety and quality standards. Al Thuriah Construction has two projects – Future Tower 2 and 3 in Al Khan Area. Raymond Khouzami, CEO of Al Thuriah said: "I am particularly satisfied to note that we have had a positive impact on our communities and on the overall property market in the UAE. We will continue to strengthen this positive impact with our new and focused organisation structure, as we look forward to the next phase of our growth.” g

First Avenue Mall gets ready for opening

uilding work is almost finished on First Avenue, the new shopping mall and hotel development in Motor City. The project’s backers say construction work for the mall is on track for completion by the end of this month, with fitout for the retail units set to take another four months. The mall is expected to open in May, along with the adjoining hotel. First Avenue’s anchor tenants are in place, taking up 40 per cent of the mall’s leasable area. Carrefour, the leading shopping mall, retail and leisure pioneer across the Middle East and North Africa, will take up 11 per cent of the leasable area. Prime Medical Centre, a leading provider of clinical, diagnostic and medical tourism services, will absorb 9 per cent of the leasable area. Fun Block, part of Fun City by Landmark Group, will

500,000 square feet – the size of First Avenue Mall

introduce a new generation of children’s entertainment space, occupying 9 per cent of the leasable area. Reem Al Bawadi, a famous Arabic food and beverage chain, will take up 6 per cent of the leasable space. ACE Hardware, the world’s largest hardware retail cooperative selling products to fix homes and businesses, will have 5 per cent of the leasable area. First Avenue, which is owned and operated by Saudi Arabia’s Al Tawfeeq for Development and Investment (ATDI), will meet rapidly scaling consumer and

business demand in Motor City as Dubai’s tourism sector and the local population grow. Dr Ramy Moussly, ATDI General Manager, says, “The project will be a landmark development in Motor City, strategically located to serve local demand in a growing catchment area with a young demographic, and positioned to help meet rising business and leisure tourism numbers in Dubai.” First Avenue is part of Dubai’s newest suburban quarter. Among the signs that the area is popular is the planned move by media group MBC of a major part of its production to Dubai Studio City which is less than one kilometer from the mall and hotel. As Dubai’s development moves southwards, we are well sited to serve a growing and discerning market. “First Avenue, based at the edge of the Dubai Autodrome, will have 70 high-

REALTYBYTES The first Avenue Mall is expected to be opened in May this year

street retailers and 15 casual dining restaurants. The adjoining four-star 150-room hotel, which can be accessed directly from the mall, will be operated by Park Inn by Radisson, with an all-day restaurant, lobby, meetings and events spaces, gym, spa and swimming pool. The hotel overlooks the race track at Dubai Autodrome. First Avenue’s backers want the mall to be an allweek-round social and retail hub in the Union Propertiesdeveloped Motor City, with a distinct automotive and lifestyle theme. The twostorey development stretches across 500,000 square feet, with a one-kilometre roadway linking each and an underground car park with 400 spaces. Motor City is a rapidly growing area, close to Studio City, Sports City and Arabian Ranches, and a short drive from Maktoum International Airport and the Expo 2020 site. g Gulf Property

OPINION

CHRISTINE LAGARDE

Managing Director International Monetary Fund

et me start with some good news. After many years of feeble growth, the IMF is expecting global economic activity to pick up this year and next, and across both the advanced and emerging economies. However, this does not mean we are out of the woods: conflicts and lower oil prices will continue to affect growth and, by extension, also government revenue. While oil prices have increased recently, we do not expect them to return to levels we have seen before 2014. And there are, of course, questions about geopolitical developments in many regions of the world. In the face of such uncertainty, countries need to build resilience. Robust public finances are one way to create such resilience. Indeed, governments in this region and elsewhere need to increase their efforts to create a stronger and more reliable stream of revenue. As the Arabic proverb puts it: “A tree begins with a seed.” So, I would like to pose the question: how can countries build tax capacity

Gulf Property

Public Revenue to sow the seeds of a healthy and inclusive economy, for the benefit of all citizens? The momentum toward revenue mobilization, and the associated work going on at the international level, present the region with a major opportunity. By creating tax systems, countries can generate resources needed to tackle future challenges—and do so in an efficient and equitable manner. This, of course, requires a clear and comprehensive strategy that interlinks tax policy reform with revenue administration reform. In other words, what and whom to tax should go hand in hand with how you go about collecting these taxes. Let us begin by looking at the steps needed to design a comprehensive tax policy. We at the IMF think that a good first step is establishing a five-to-ten-year revenue target. After that, a comprehensive reform plan is necessary, aiming at long-term institution building rather than short-term fixes. Finally, collecting and disseminating good data is vital for making good decisions.

Revenue Targets

Why do we need revenue targets to begin with? Because these are essential goal posts that can help you align your revenues with your spending—both in the short term and the medium term. A good example is Algeria—where the 2017 budget law for the first time includes a medium-term framework that sets revenue and spending targets for the next three years.

Tax Reform Priorities

If tax reforms are to be successful and achieve their targets, policymakers will need to focus their tax policy on key priorities. In the oil-exporting countries, this means diversifying the sources of revenue away from oil and gas. As a first step, countries are introducing a VAT and other consumption taxes—for example on tobacco and sugar-sweetened beverages. Over time, governments may also consider deriving additional revenue from income and property taxation. Countries in the Gulf, for example, are working to introduce a harmonised VAT in 2018. These efforts—which the IMF has supported through is technical assistance—could raise anywhere from 1 to 2 percent of GDP, assuming a VAT rate of 5 percent. Our experiences in other regions underscore the positive impact of diversification. Mexico, for example, was able to boost its non-oil tax revenue by more than 3 percent of GDP—by broadening the VAT base and raising energy taxes and personal income tax rates. In the oil-importing countries the key priority is to generate higher revenue by broadening the base of existing taxes. Such reforms would make tax systems simpler, more efficient, and more equitable. This requires, for example, rationalising multiple VAT rates and other tax preferences. Some of the key measures here include simplifying the rate structure and getting rid of exemptions, tax

holidays and other carveouts that benefit only a few and create opportunities for arbitrage. Egypt, for example, last year approved the replacement of the old general sale tax with a new VAT. Once fully implemented, the new VAT will raise 1.5 percent of GDP more in revenue than the old tax. Another good example is Jordan and Lebanon, where a well-designed and well-administered VAT has allowed for other growth-friendly measures, such as lowering customs tariffs and reducing income tax on labor and capital. In some countries, tax reform also means making tax systems more progressive— by lifting the top marginal tax rate on personal income. And of course, current tax rules should be applied in a consistent and coherent way.

Transparency

More broadly, fiscal transparency and the sharing of reliable data are essential for the well-being of all countries. Why? Because they increase the accountability of governments and because they can boost the resilience of their economies—and that includes lower borrowing costs. For example, new IMF staff research shows that greater data transparency— promoted through the IMF data standard initiatives— leads to a 15 percent reduction in the spreads on emerging market sovereign bonds—three months after the improvements are made. Of course, better data gathering and sharing help policymakers to design reform strategies and implement them effectively. g

Structural Shift

t is always a very promising sign when an industry demonstrates the flexibility and resilience to undertake a structural shift when market requirements change or develop. This is exactly what has happened in Dubai’s property and real estate industry. It came as no surprise to those that take a broader view of the industry that calls from a variety of industry participants including the government, banks and the more visionary industry observers for more affordable housing in Dubai had gathered volume and intensity over the past few years. In so doing, there was a recognition that the most important investor in Dubai’s Real Estate market had been forgotten too often by developers and brokers and that a refocusing on building affordable, robust and sustainable communities to be inhabited by the average family living frugally on an average salary was of irrefutable importance if Dubai’s economy was to develop and grow to the next level. The bedrock of any property industry is its owner occupiers. They represent the core of the industry as it is they who view property as an investment in life, not just a way to make a quick buck. And yet only recently have they attracted focus in Dubai’s rapidly maturing industry which is more proportionate to their importance. Owner occupiers see Real Estate in a different light. Typically they are normal people, not overly wealthy, who are concerned with providing the family with a future. For them, it’s about

creating a lifestyle. Its about creating a home which will provide an environment that is safe and secure within which the individual, couple or family can grow and develop in all aspects whether physical, emotional, social and, of course, financial. In this respect they have a lot more at stake than those investors with financial interests only. Healthy, vibrant and progressive communities are built around the stability that owner occupiers bring. They are less likely to migrate to another neighbourhood and are more concerned with regards to the overall wellbeing of the community that they are part of. They establish relationships that strengthen the fabric of a community which itself can become a powerful voice for progress. And these communities are now springing into life all over Dubai. Communities such as Skycourts, Q Point and Motor City in Dubailand have shown how rapidly communities can develop and grow to provide a lifestyle that belies their affordability. So who needs to ensure that this most important consumer segment is catered for in an industry which can be notoriously out of touch with consumer requirements? Well, just about everybody who plays a role in our industry but, more significantly, the government, the financiers and the developers. And given the results of 2016, they are to be congratulated for initiating the structural shifts that we are witnessing. The dialogue regarding the dual objectives of affordability and profitable sustainable

growth for the real estate sector must be ongoing as a continual and constant review of possible initiatives and regulatory actions that will ensure that the considerable progress already made and foundations laid in strengthening and modelling the industry is continually built upon. The health of the industry is too important and the issue of affordability is critical to the broader economy as well. Dubai can ill afford becoming cost uncompetitive in the global market in the lead up to the 2020 World Expo. For any Real Estate market to function efficiently and effectively, it requires a banking sector which is also functioning efficiently and effectively. Banks play a fundamental role in enabling prospective home owner occupiers own a piece of Real Estate. If you consider that in most global markets, anywhere between 65 per cent and 85 per cent of residential property transactions involve some form of financing, and reflect on the fact that in Dubai the number of residential property purchases financed by mortgages in 2016 was around 50 per cent there appears to be plenty of scope for more growth. This number is actually up from the 33 per cent historically seen in the emirate so it appears that the banks are discovering the formula of providing accessible finance to a broader consumer base without taking on excessive, whether real or perceived, risk. Developers have come a long way in providing greater supply of affordable housing.

OPINION

MOHANAD ALWADIYA

Chief Executive Officer of Harbor Real Estate, Senior Advisor and Instrucor at the Dubai Real Estate Institute

To their credit, they now have a deeper understanding of what is required by this segment of the market. They themselves have improved in providing recognizable value, emanating from a greater focus on the customers and their requirements and value expectations. Some have demonstrated innovative approaches to delivering affordable solutions which are valued by the customer, and done so profitably. Virtually every industry has faced this challenge over the last 5 decades and many have demonstrated that giant strides in the provision of true value while retaining healthy margins is possible. Dubai’s property Industry will continue to follow a similar path in 2017. g Gulf Property

I WANT TO EXPAND MY INVESTMENT PORTFOLIO

THE HOME OF REAL ESTATE INVESTMENT Cityscape Egypt is back this year for its’ 6th edition, with the top key developers in the market all under one roof; empowering you to focus on making the right investment decisions! Get all your questions answered by the experts of the Real Estate industry with the latest trends, projects and oﬀers, without having to go through the hassle of searching for the best opportunities at diﬀerent locations so you can focus on what is more important - Expanding your investment portfolio!

Register now for FREE entry at www.cityscapeegypt.com and SAVE 50 EGP! +9714 336 5161 Oﬃcial Specialized Oﬃcial Media Partner Magazine

31 MARCH - 3 APRIL 2017 Cairo International Convention Centre, Egypt

info@cityscapeegypt.com Oﬃcial Business Newspaper

Oﬃcial Real Estate Newspaper

www.cityscapeegypt.com Oﬃcial English Newspaper

Organised By

Dubai realty back to growth trajectory

he news that Dubai Land Department concluded Dh42 billion worth of property transactions in 45 days – or nearly half of the total foreign investment in the emirate’s real estate sector in 2016, is a strong indication that the emirate’s real estate market has bottomed out last year. This unprecedented transaction level creates a history in the emirate’s property transactions in the first few weeks in a year. If the same momentum continues, Dubai could create a new record in real estate deals hitting Dh340 billion this year. This would be way above the last year’s Dh259 billion property deals recorded in 2016. The news comes within a month after Dubai Land Department said that it has recorded Dh12 billion worth of land and property transactions within just two weeks – a record. During the first 15 days of 2017, land plots recorded 520 transactions worth Dh7.51 billion, while land sales claimed the lion’s share in terms of volume, generating 306 transactions worth over Dh3 billion. Mortgages excelled in terms of value, after reporting 190 transactions worth Dh4 billion. Building transactions totalled Dh682 million. Segmenting building sales and mortgages, building sales recorded 287 transactions worth Dh532 million, while building mortgages performed 74 transactions worth Dh127 million.

If the current momentum [of real estate transaction] continues, Dubai could create a new record in real estate deals hitting Dh340 billion this year. This would be way above the last year’s Dh259 billion property deals recorded in 2016....

Individual unit sales and mortgages also saw significant activity, generating over Dh2.8 billion. This was split between 1,616 sales transactions worth Dh2 billion, and 338 mortgage transactions worth Dh453 million. The value of transactions across the three categories – land, buildings and individual units – approaches Dh12 billion, achieved via 2,210 sales, 602 mortgages, and the remainder from other transaction types. These figures are a living testimony of the fact that the worst for Dubai’s real estate market is over and we are looking at a strong growth path ahead of us. With sound

regulatory environment that ensures that all stakeholders in the real estate industry play their due role in development, delivery, buying and selling activities – nothing could go wrong – despite challenging external factors. But why sudden jump in real estate transaction level? Is there a sudden infux of capital in the market? The answer is quite simple: the prices are at rock bottom. It is the best time to buy. An investor could not have had a better time to invest in Dubai’s property market, before prices begin to go up. As a developer with long term view of the UAE economy, we have always felt the attractiveness of the country’s economy and its ability to navigate out of the multiple economic and regional crises. The UAE in general and Dubai in particular, is the most connected city in the Middle East North Africa region and it’s liberal business environment will always help bring in more businesses and investment. Shaikhani Group is a committed real estate developer, which has delivered 224 units in 2016 and getting ready to deliver a further 135 units in Champions Tower 1. Property development is a multi-stakeholder complex economic activity that is guided by the country’s regulation where all stakeholders – master developer, consultant, property developer, main contractor, subcontractors, building materials suppliers, landscape contractors, property broker, the bank – and most

OPINION

MAHMOOD SHAIKHANI

Managing Director, Shaikhani Group

importantly, the property investors and buyers – have to play their respective roles, in order to ensure the smooth and timely delivery of each project. Property developer coordinates the whole process on behalf of the investors – to offer a better product and services to customers so that they could live happily. For the last 12 years, we have remained part and parcel of the UAE’s real estate business. It’s good to see that the market is rebounding for the second time, coming out of a second slowdown. As the saying goes – when the going gets tough, the tough gets going – the UAE resilience of the UAE economy will continue to help it going and bring in more foreign investment into the country. As a developer, we have seen it time and again and the country has proven it. g Gulf Property

OPINION

NOORUL ASIF

Chief Operating Officer Schon Properties

ime couldn’t have been better for investment in hotel apartments in Dubai. Let me put the facts together for everyone to understand. In 2020, Dubai will host more than 20 million hotel guests a year. More than 25 million visitors – that includes residents – will visit the World Expo 2020 that will run for six months from October 2020. So, how many hotel rooms will Dubai need to host 20 million guests a year? Assuming each guest stays one night in a hotel room or a hotel apartment, Dubai will need 54,794 rooms or hotel apartments, if the occupancy remains at 100 per cent. However average length of hotel stay per guest ranges from 2.5 to 3 nights. So, on a 80 per cent occupancy level, these facts translates to an estimated room inventory of more than 180,000 rooms. If couples and families are calculated sharing a hotel room or an apartment, the required demand would fall to a much lower number. Es-

Gulf Property

Time to invest in hotel apartments timates of anticipated required hotel room inventory vary between 140,000 to 145,000 rooms and hotel apartments. Dubai has 100,000 hotel rooms and hotel apartments. Even if we take the lower limit, the emirate will need 40,000 new hotel rooms and hotel apartments within less than 42 months, as the clock is ticking for Expo 2020 – the largest exposition to take place in the history of the Middle East – that the city of Dubai will proudly host. Of the 100,012 hotel rooms and service apartments available in Dubai, 31,953 or nearly 32 per cent belong to the five-star category while 22,108 rooms fall under business hotels or four-star category and 21,104 rooms fall under 1-3 star rating. Among the rest, 9,417 are deluxe hotel apartments while 15,430 hotel apartments fall under standard hotel apartment category, DTCM statistics show. In terms of the number of hotel and serviced apartments, Dubai is host to 672 hotel and hotel apartment complexes till date. The industry added just 12 in the last 11 months from 670 last year. Of the 672 hotels and hotel apartment complexes, 205 are service apartment complexes with the number of deluxe and superior hotel apartments reached 64 and the standard hotel apartments reaching 141. Dubai currently has 93 five-star hotels, 108 four-star business hotels and 266 budget hotels with standards ranging from one-star to three-star ratings.

An investor could get an average net income of 12% return on investment from hotel apartments, compared to 6-7 per cent from residential units. However, depending on certain factors, hotel apartments fetch 15% return on investment

The DTCM expects occupied room nights in hotels and hotel apartments to reach 35.9 million, representing a 10.8 per cent compound annual growth rate (CAGR) from the end of 2015 to the end of 2018. As such, the overall room supply is expected to reflect similar growth, reaching 134,000 rooms by the end of 2018, DTCM projects. However, looking at the growth in the visitor traffic and expansion of the hotel establishment capacity, it appears that the demand is far outgrowing supplies. Our study shows that an investor could get an average net income of 12 per cent return on investment from hotel apartments, compared to 67 per cent rental yield of residential units. However, depending on location, quality of products and brand po-

sitioning, hotel apartments could fetch an investor a whopping 15 per cent return on investment. If one takes into account the anticipated demand around 2019-2021 – the picture becomes clear. There can’t be a better time for investment in hotel apartments. That’s why, our organisation is developing 2,550 iSuites – branded hotel apartments at the Dubai Investment Park that will offer more than double return on investment when compared to residential or commercial real estate. The yield is backed by strong numbers of tourists coming in the proximity of the iSuites site which will lead to strong occupancy levels and high average daily rates (ADR’s). The movement of 160 million passengers through Al Maktoum International Airport, 25 million tourists to the EXPO 2020 site and 5 million annual tourists at Dubai Parks and Resorts – are the three mega demand drivers for hotel apartments in the New Dubai area. In all probability, the annual income yield could exceed 15 per cent, in which case, the investor could get back the entire value of the investment in less than seven years. Our views on this are clear by retaining a substantial portion of the development going forward. On top of this, I expect 50 per cent capital appreciation on the asset over the next three years, due to the site’s prospects. g

Commercial Property Mortgage Made Easy

here are many ways of investment, which comes in a variety of flavours. Today, most of the people start capitalising in buying residential real estate simply because they're more acclimatise to buying a single family residence, which is much simpler and easier to fathom than commercial property. However, the best-upheld way of attaining high returns has been through investment in the commercial real estate. And as your portfolio grow, the commercial investment provides years of steady income, branch out the risk and offers more financial reward than residential properties besides, gives considerable approach to balance the portfolio. Buying a commercial real estate is a complex proposition, where sometimes become challenging even for experts to maximise their investment value. However, the feat in commercial real estate investments requires the right outlook, plenty of fortitude, willingness to spend time, upfront in exploring the market, arranging the right finance, establishing the right type of investment and clench of the potential risks. Henceforth, comprehending below concerns can help you to make an efficacious acquisition.

The Matrix

When deciding to buy a commercial real estate, it is important to do some homework, to understand the potential risks and to be-

come a player in commercial real estate. As the commercial property valued differently, the income on commercial real estate is calculated on usable per square foot area but in a residential home that's not the case. Through commercial property a big cash flow can be seen as you get added income on residential unit, than on a single home. However, while evaluating commercial real estate, you should get used to with the commercial key conditions and metrics such as – what is the net operating income of that property, what is the current cap or capitalization rate, which estimates the net current value of the property.

Getting It Right

Location is the crucial part. The type of commercial asset which could be office buildings, warehouse, restaurants or shops etc., should be strategically located. For instance, a parking area might be essential for retail shops, whereas a wholesaler might want a large stocking dock. So what you are looking for in commercial space will depend on your business profile. Pay particular attention to zoning law and restrictions that govern the sites. Moreover, ponder growth prospective in the long run, and determine if you will be able to lease out space if the company doesn’t grow as projected.

Expert Advice

Buying commercial real es-

tate is often a complex process and having an expert beside, will certainly help with most of the steps. Appointing a commercial real estate broker, a lawyer, an accountant and a mortgage broker will sway your acquiring process. These professionals can support to value properties and will assure contracts are upright before signing. And indeed can help you to identify a bank which can finance once you select the property.

Due Diligence

During the buying process, it’s essential to review the agreement fine prints and perform an extensive study on the developer and the development. Buying the property from the renowned developers might make the purchase process smoother. Make sure to look at, if there are no issues with the property that could imperil your business anon. Examine wisely and find if any impending pitfalls such as constructional defects, or dated installing. You should also make sure no insurance dues or lawsuit affect the property.

Finance

Commercial mortgage guidelines are slightly different as compare to residential mortgage. And today affordability is a big issue in commercial real estate, so before you approach a bank, you should work with an accountant to determine your budget. In commercial funding, the bank requires a deposit of

OPINION

DHIREN GUPTA

Managing Director 4C Mortgage Consultancy

about 30 to 40 percent of the sale price and the loan terms is up to 15 years only in the UAE. To qualify for the commercial funding the bank reviews buyer’s business profile and company audit report, director’s income documents and bank account statement. In general bank review the past performance, the current viability and long-term future plans of the business which determines the purchaser repayments competence. Commercial mortgage loan-to-value generally falls into the range of 60 to 70 percent. And the current commercial mortgage rates in Dubai start from 4.99 percent. It is always favourable to shop around for the best mortgage package.

Conclusion

In the commercial market, you need to swot up on the different guidelines and conditions. And to scale down the speculations conduct indepth research and look for expert advice. The more you know about commercial real estate, the better-off you'll be in the long run. g Gulf Property

FOCUS

Realty deals value falls to Dh259 bn in 2016

Gulf Property Exclusive

ubai’s real estate market has witnessed a decline in the number of deals and the value of transactions in 2016, according to the property transaction report issued by Dubai Land Department, the emirate’s land and property registrar – that reflects the overall economic situation of the country felt by consumers last year. The total value of land

Gulf Property

transaction declined marginally by 2.99 per cent to Dh259 billion in 2016, down from Dh267 billion recorded in 2015, and 18.8 per cent up from Dh218 billion recorded in 2014, according to Dubai Land Department (DLD) reports. The number of real estate transactions also declined 4.9 per cent to 60,595 last year, down from 63,719 recorded in 2015. “Over 41,776 sales transactions took place, representing a total value of Dh103 billion, while the 15,000 mortgage transactions were equivalent to a

value of Dh128 billion”, the Mahmood Shaikhani

Managing Director report, released on Saturday, Shaikhani Group

said.

The total value of sales transaction fell 20.76 per cent to Dh103 billion in 2016, represents a significant dip in the value of sales, compared to Dh130 billion in 2015, a comparison between DLD’s reports show. Sultan Butti Bin Merjen, Director General of DLD, said the findings in the report confirm that the real estate market in Dubai has reached a new phase of maturity and stability, and that it is moving towards sustainable growth. In 2016, land sales and mortgage transactions represented a total value of Dh193 billion across 15,994 trans-

FOCUS

At A Glance

Dh259 billion value of land and property transactions in 2016

Dh267 billion value of land and property transactions in 2015

Dh218 billion value of land and property transactions in 2014

Dh1.5 billion

total estimated brokers’ fee generated in 2015

Dh103 billion value of sales transactions concluded in 2016

Dh130 billion value of sales transactions concluded in 2015

Sultan Butti Bin Merjen, Director-General of Dubai Land Department, said the report confirm that the real estate market in Dubai has reached a new phase of maturity and stability, and that it is moving towards sustainable growth

actions. This breaks down to mortgages bringing in over Dh114 billion via 5,145 transactions, while sales secured over Dh55 billion from 9,892 transactions. In terms of value, commercial land (already built on) claimed the lion’s share, representing 30 per cent of the total value secured by transactions in 2016, Dubai Land Department said. Noorul Asif, Chief Operating Officer of Schon Properties, says: “Dubai’s land and property sector has matured over the years and the Dubai Land Department’s latest report is a living testimony of

this. The total value of Dh259 Noorul Asif billion (US$70.5 billion) is Chief Operating Officer higher most countries’ Schonthan Properties

annual gross domestic product (GDP), when compared. This reflects the magnitude of the real estate sector. Land Department should be commended for issuing such detailed and transparent report that will silence critics. “With the latest set of regulations and the level of transparency, Dubai remains a very attractive place for real estate developers, brokers and investors. We are proud to be a contributor to this sector – and the launch of our Dh3.2 billion iSuites projects are going to help the industry reach new heights.” Segmenting sales and

Dh12 billion

investment by Indian buyers in Dubai properties in 2016

Dh20 billion

investment by Indian buyers in Dubai properties in 2015

Dh12 billion

value of land and real estate transactions in the first two weeks of 2017

Dh22 billion

investment by UAE, GCC and Arab nationals in Dubai’s real estate in 2016

60,595

number of real estate and land transactions in 2016

Gulf Property

FOCUS “The total value of transactions reaching Dh259 billion (US$70.5 billion) also reflects the investor interest in Dubai’s property market and will silence its critics. This shows that Dubai is still the best investment destination when it comes to property sector...”

– Mahmood Shaikhani Managing Director Shaikhani Group

mortgage transactions by buildings and units, DLD’s report finds that over 44,602 transactions took place, representing a total value of Dh66 billion. Building sales recorded 2,626 transactions worth Dh7 billion, while units performed 29,258 transactions worth Dh51 billion. In addition, the report records 1,391 building mortgage transactions worth Dh3.4 billion, and 8,000 unit mortgage transactions valued at Dh10.5 billion. Faisal Durrani, Head of Research, Cluttons, says, “With average residential values down 7.4 per cent during the past twelve months, the rate of decline is expected to slow heading into 2017 before reaching a new base towards the end of next year.”

Gulf Property

Burj Khalifa area reported the highest transaction level, having secured over Dh7 billion across 2,097 transactions. Following closely behind, the Dubai Marina area recorded 2,937 transactions worth Dh6.3 billion, Business Bay with 3,508 investments worth Dh6.2 billion, followed by Jebel Ali 1, Burj Khalifa and Warsan 1. In terms of the number of transactions, Business Bay witnessed the highest number of transactions, however, it had lower value per transaction. This reflects that the Burj Khalifa area remains the most valuable destination in

Dubai.

Faisal Durrani Head of Research Dubai’s Seeh Cluttons

Shuaib

emerged as the most attrac-

tive area for investors in 2016, with the value of its land sales transactions reaching Dh3 billion across 1,684 transactions. It was followed by Al Yafra 3, Al Yafra 2, Al Hebeya 3 and Sheikh Mohammed Bin Rashid Gardens. Mahmood Shaikhani, Managing Director of Shaikhani Group, says: “Dubai’s real estate market is maturing and the latest Dubai Land Department report is a reflection of that. The comprehensive report also reflects the level of transparency by Dubai Land Department which has successfully

Brokers earn Dh1.5bn in commission

ubai’s real estate brokers earned Dh1.5 billion in fees and commissions through 32,932 transactions in 2016, Dubai Land Department (DLD) said in its latest report. Dubai’s real estate market is served by 5,933 active brokers and 2,285 registered brokerage offices who are strictly monitoried by the Real Estate Regulatory Agency (RERA), part of the Dubai Land Department (DLD). Brokers usually earn 2 per cent of the transaction as commission – in theory. However, in practice, they sometimes undercut the commission to attract the customers. Usually, brokers working for brokerage firms, earn half of the commission, while the rest goes to the brokerage company’s coffers. Some brokers are paid in salary and commission while others work on pure commission basis. Yousif Al Hashimi, Deputy CEO of RERA said: “Brokers

steered the real estate market over the years to develop as the best property market in the Middle East. We commend DLD for the honest and transparent report that gives a very solid insights into the market. “The total value of transactions reaching Dh259 billion (US$70.5 billion) also reflects the investor interest in Dubai’s property market and will silence its critics. This shows that Dubai is still the best investment destination when it comes to property sector. Shaikhani Group has delivered 224 apartments last year and we are proud to

Yousif Al Hashimi Deputy Chief Executive Real Estate Regulatory Agency (RERA)

and real estate offices play a vital role in promoting the real estate market in Dubai. DLD has ensured the legality of their activities by issuing legislations that guarantee the rights of all parties, and by introducing numerous training courses. These are designed to help brokers and real estate offices work efficiently and transparently, provide excellent customer service and answer all inquiries professionally.” DLD’s report reveals that UAE citizens ranked first in terms of the number of brokers in the market, followed by Indian nationals and Pakhave contributed in this sector in our small way.” With regards to building sales, Sheikh Mohammed Bin Rashid Gardens was the most prominent area in 2016, attracting a total of 699 transactions valued at Dh1.8 billion. Al Yalayis 1, Al Thunaya 4, Al Yalayis 2, and Nad Al Sheba 1 were the next most active areas for building sales. In terms of individual unit sales, Business Bay took first place with 3,491 transactions valued at Dh5.1 billion, followed by Dubai Marina with 2,923 transactions exceeding Dh6 billion. Jabal Ali 1,

istani nationals, who have also achieved excellence in this field. In descending order, the other most active nationalities in the real estate market were discovered to be the UK, Egypt, Russia, Lebanon, Jordan and the Philippines. The report also confirms the growing presence of women brokers in Dubai’s real estate market; today there are 1,946 women working in this field, compared to 3,987 men, representing 33 per cent of the total numbers of brokers. Brokers and real estate offices operating in the Emirate secured a high income from commissions for their services to investors and real estate development companies across the world. Together, they performed 32,932 transactions amounting to Dh1.52 billion. Hashimi concluded: "The high volume of brokerage activity in Dubai is a reflection of the excellent health of the local real estate market. With its incentive environment, the market attracted huge numbers of brokers from around the world, promoting Dubai real estate both locally and globally.” g Burj Khalifa and Warsan 1 were the next most active areas for unit sales.

Land Mortgages

The highest number of land mortgage transactions was recorded in Al Thunaya 5, which secured 352 mortgage transactions representing a total value of Dh2.27 billion. It was followed by Al Hibeya 3, which recorded 340 mortgage transactions at a total value of Dh1 billion, and Wadi Al Safa 6, where 261 mortgage transactions

FOCUS

amounted to a total value of Dh865 million. In terms of buildings, Al Thunaya 4 came on top in terms of mortgage transactions, with 350 mortgage transactions amounting to Dh623 million, followed by Al Yalayis 1, which recorded 280 mortgage transactions at a total value of Dh362 million. Wadi Al Safa 6 came in third place, with 170 mortgage transactions amounting to Dh363 million. Dubai Marina secured the highest number of mortgage transactions for individual units, with 1,107 mortgage transactions amounting Dh1.72 billion. It was followed by Thunaya 5, where 953 mortgage transactions totalled Dh1.25 billion, with Business Bay following in third place with 783 mortgage transactions representing a total value of Dh1.15 billion.

Developers and Brokers

DLD report shows that 55 new developers entered the market as per the Developers Registration, with the launch of 134 new projects worth over Dh100 billion, and the completion of a further 62 projects in 2016. The data also reveals that in 2016, DLD recorded over 410,000 lease contracts from different groups across Dubai. DLD issued 695 brokerage licenses over the course of 2016. Of these, 272 brokerage companies were involved in the sale and leasing activities, while 223 brokerage companies were involved in real estate rental activities. The number of brokers has increased to 5,933 over the past year, and that 2,285 brokers’ offices were active in 2016. g Gulf Property

FOCUS

Indian investment falls 40% in Dubai realty

nvestment by Indian nationals in Dubai’s real estate fell 40 per cent to Dh12 billion ($3.2 billion) in 2016, down from Dh20 billion ($5.4 billion) in 2015, Dubai Land Department reports show. However, Indian nationals remain the top foreign investor group by nationality. As has been the case in previous years, more than 7,000 UAE nationals from across the GCC, Arabs, and foreigners, invested nearly Dh22 billion in 2016. Total investment in Dubai’s real estate also fell 32.5 per cent from Dh135 billion

Gulf Property

(US$36.78 billion) in 2015 to Dh91 billion (US$25 billion). Dubai Land Department (DLD) report shows that 55,928 investors injected Dh91 billion (US$25 billion) in Dubai’s real estate last year, including 22,834 foreign investors from 136 countries pumping in Dh44 billion (US$12 billion). However, this is significantly lower from the previous year. More than 55,928 investors from 150 countries invested Dh135 billion (US$36.78 billion) in to Dubai’s real estate sector in 2015, according to DLD, the emirate’s land and property registrar. Foreign in-

vestment in the Dubai real estate market in 2015 amounted to Dh74 billion from 35,165 investors. “Indian nationals rank highest in terms of both volume and value, making Dh12 billion worth of property transactions by 6,263 investors in 2016,” DLD said in a report. Indian investors are followed by 3,372 British investors who injected Dh5.8 billion in Dubai’s real estate while 3,372 Pakistani nationals purchased Dh4.4 billion ($1.2 billion) worth of property. In 2015, Indian investors topped the list of foreign with

8,756 Indians injecting Dh20 billion in Dubai’s property sector, followed by British nationals who were responsible for Dh10 billion worth of transactions. As many as 4,889 British nationals bought properties in Dubai last year. However, 6,106 Pakistani nationals purchased Dh8 billion worth of properties – making the third largest foreign investor group. The share of Pakistani investors in the Dubai property market in 2016 declined a 42.8 per cent compared to the previous year. With the Dh4.4 billion investment in

Dubai records Dh12bn land deals in two weeks

2016, the investment of Pakistanis in Dubai property market since 2013 reached AED 28.4 billion ($7.73 billion) or Rs810 billion. In 2016, citizens of the GCC states contributed Dh35 billion from 12,768 investors of six nationalities, while 3,294 Saudi Arabian investors made transactions worth Dh8 billion. Investors from Qatar and Kuwait approached Dh2 billion mark, from 1,006 and 770 investors respectively, followed by nationals from Oman (301 investors) and Bahrain (244 investors), who contributed up to Dh1 billion.

Arab investors from outside the GCC contributed over Dh12 billion to the real estate market last year, from 6,416 investors of 16 nationalities. DLD’s report reveals that among these, Egypt ranked highest in number of investors, with 1,364 investors making transactions worth over Dh2.4 billion. Other leaders in numbers of investors were Algeria, Iraq, Lebanon, Palestine, Sudan, Yemen, and other Arab countries, while citizens of Jordan ranked highest in terms of value, investing a total of Dh2.5 billion across 1,331 investors. g

surge in oil price and new investment from China and India, is set to boost Dubai’s real estate market that is witnessing a massive inflow of capital, evident in Dh12 billion deals concluded in the first 15 days of 2017. Dubai Land Department said, it witnessed Dh12 billion deals in the first two weeks of 2017, or Dh6 billion in every five working days – creating a history of transactions in the first few weeks in a year. At this rate, Dubai could record real estate deals worth Dh292 billion this year – if the trend continues. This would be way above the last year’s Dh259 billion property deals recorded in 2016. “These figures are living testimony that the worst for Dubai’s real estate market is over and we are looking at a strong growth path ahead of us,” Noorul Asif, COO of Schon Properties, said. “With sound regulatory environment that ensures that all stakeholders in the real estate industry play their due role in development, delivery, buying and selling activities – nothing could go wrong – despite challenging external factors.” The fourth quarter of 2016 witnessed major transactions in many areas. Two land plots in Al Hebiya 4 were sold for Dh900 million, while another land plot was valued at Dh750 million, Land Department said. In terms of units, Dubai Marina recorded the highest value transaction of Dh29.7 million, while two units in Al

FOCUS

Thunaya 4 were valued at up to Dh28.3 million each. During the first 15 days of 2017, land plots recorded 520 transactions worth Dh7.51 billion, while land sales claimed the lion’s share, generating 306 transactions worth Dh3 billion. Mortgages represents 190 transactions worth Dh4 billion. Building transactions totalled Dh682 million. Segmenting building sales and mortgages, building sales recorded 287 transactions worth Dh532 million, while building mortgages performed 74 transactions worth Dh127 million. Individual unit sales and mortgages also saw significant activity, generating over Dh2.8 billion. This was split between 1,616 sales transactions worth Dh2 billion, and 338 mortgage transactions worth Dh453 million. The value of transactions across the three categories – land, buildings and individual units – approaches Dh12 billion, achieved via 2,210 sales, 602 mortgages, and the remainder from other transaction types. Citing the latest economic growth figures that shows Dubai economy set to grow at 3.1 per cent this year, up from 2.7 per cent last year, he says, the market will only grow now. “With a large number of properties due for deliveries, there could not have been a better time to invest in Dubai’s real estate market. While the new deliveries could put additional pressure on price per square feet, the new investments could accelerate the demand and push up prices. This is the best time to buy properties in Dubai – both in terms of buying for living and investment,” he said. g Gulf Property

FOCUS

Dubai economy to grow at 3.1% in 2017 D ubai’s economy is expected to grow at 3.1 per cent this year, increasing from the 2.7 per cent economic growth recorded last year, a statement by the emirate’s Department of Economic Development (DED) said. Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai Civil Aviation, Chief Executive of the Emirates Group and Chairman of the Economic Development Committee in Dubai, said the economy of Dubai grew by 2.7 per cent in real terms in 2016 despite declining oil

Gulf Property

prices, sluggish growth in developed as well as many emerging economies, and a mere 1.7 per cent growth in global trade – its lowest since 2008-2009. The emirate is expected to grow by 3.1 per cent in 2017, he added. Delivering a keynote address at the UAE Economic Outlook 2017 conference, he also revealed that Dubai will announce its future economic outlook twice every year from now onwards – in January and October. He asserted that sustainability and flexibility are the most notable characteristics

of Dubai’s ongoing economic and social transformation under its wise and devoted leadership. "More than three decades ago, our leadership put diversification on the top of the development pyramid in Dubai and the growth vision and strategies adopted since then have all focused on accelerated and sustainable growth. It has led to faster integration of the emirate’s economy into the global economy and quantitative as well as qualitative growth away from oil,” Sheikh Ahmed said. “Real economic growth has

averaged five per cent a year, while the importance of non-oil economic activities has grown steadily. Our efforts at economic diversification continue unabated with a target of increasing the contribution of the non-oil sectors to UAE GDP from 70% today to 80 per cent during the next 15 years.” During the past year, the UAE continued the course of diversification and progress and achieved new milestones, he said. This includes a jump of 8 points in the World Bank Doing Business report, from the 34th to now the 26th easiest country

FOCUS

in the world for doing business, and ahead of any other Arab country. The World Bank also recognised the UAE as one of the top 10 most improved business environments over the past year. The UAE also topped the list of countries in the Middle East and North Africa region Global Entrepreneurship Index Report 2016, and ranked 19th in the world ahead of countries such as Norway, South Korea, Turkey and Japan. According to the World Competitiveness Report 2016-17, the UAE is second only to Singa-

pore in the Air Transport Infrastructure Quality index that measures the general level of infrastructure in airports and their compliance with international standards. Reaffirming Dubai’s commitment to pursue its decades’ old policy of openness, Sheikh Ahmed said that the emirate will continue to embrace the world economy through welcoming trade, investment, people and ideas. Environmental sustainability is another guiding principle of the UAE 2021 National Agenda that was announced by HH Sheikh Mohammed Bin Rashid Al

Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to entrench the principle of sustainability in the march towards a diversified and competitive green economy in the UAE, he added. “We are working to ensure sustainable development while preserving the environment, and to achieve a perfect balance between economic and social development through improving the quality of air, preserving water resources, increasing the contribution of clean energy, and implementing green growth plans. We con-

tinue to work closely with the private sector to boost productivity growth and improve the quality of public services. This is the strategic goal that inspired Dubai’s Public-Private Partnership Law where we seek a continuous model for exchange of knowledge and experience between the two sectors,” Sheikh Ahmed concluded. Abdullah bin Ahmed Al Saleh, Undersecretary in the UAE Ministry of Economy for Foreign Trade and Industry, said, "The GDP contribution of oil has fallen to about 30 per cent, improving flexibility and resilience of the national economy. Real GDP growth touched 3.8 per cent and the country attracted 11 billion dollars in foreign direct investment in 2015, cementing the UAE's position as a premier investment destination in the Arab world. “Exports grew 22 per cent in the same year compared to 2014 and industrial investment has grown to 130 billion dirhams in 2016 from 127.6 billion during the previous year." Emphasising that innovation is critical to achieving the levels of productivity and sustainable development as targeted in the UAE vision 2021 Al Saleh also mentioned the role of entrepreneurship in innovation and economic development. "In 2016 the UAE stood first among Arab countries and 41st globally in Global Innovation Index. The country was also ranked 19th in the Global Entrepreneurship Index in the same year and the contribution of innovation to national GDP was 3%, which was similar to what the developed world has achieved,” he said. g Gulf Property

Dubai added 26,707 companies in 2016 FOCUS

ubai added 26,707 new companies last year to the existing 107,043 trade licenses, reflecting strong investor confidence in the emirate, the Department of Economic Development, Dubai’s trade licensing authority, said in a statement. “The number of licenses renewed in 2016 was 107,043 while 20,873 initial approvals were issued and 38,918 trade named were reserved,” the statement said. This means, Dubai now has 133,750 companies active as at December 31, 2016.

Gulf Property

“The Department of Economic Development (DED) in Dubai issued a record number of 26,707 new business licenses in 2016 as the improved ease of doing business and increasing competitiveness in the emirate spurred optimism among investors and entrepreneurs.” In the first half of 2016, the Dubai Chamber of Commerce and Industry reported that 8,000 new companies had registered. The UAE has improved its trade license issuance process by simplifying the process while trade license renewal takes very minimal

time. The country’s ranking in the World Bank’s Doing Business Report improved significantly improving its overall ranking to 26, up from 34, a year ago. According to data collected by World Bank’s Doing Business team, starting a business in the UAE requires 4.0 procedures, takes 8.0 days, costs 13 per cent of income per capita for men, and requires 5.0 procedures , takes 9.0 days, costs 13 per cent of income per capita for women. A requirement of paid-in minimum capital of 0.0 per cent of income per capita is legally mandatory

for both men and women. The UAE made starting a business easier by merging the requirements to file company documents with the Department for Economic Development, to obtain a trade license and to register with the Dubai Chamber of Commerce and Industry. Omar Bushahab, Chief Executive of Business Registration and Licensing (BRL) division at the DED, said the year 2016 underlined the effectiveness of DED’s continued efforts towards facilitating business activity in Dubai. “The Department of Economic Development has

FOCUS

Craig Plumb Head of Research Jones Lang LaSalle, MENA

sponse to such initiatives from our customers,” added Bushahab. Under the system customers SMS their license number to DED on the number 6969 to have their licenses renewed following which they will receive a payment authorization in reply. The customer can then pay the fees in any outlet manually or electronically through the link attached to the SMS.

brought in substantial improvements in customer services in terms of speed and quality and this has enhanced the competitiveness across our branches and outsourced centres, leading to greater happiness and satisfaction among customers.” Average waiting time for customers at DED service centres is seven minutes and 90 per cent of the customers said it was less than seven minutes. Complex transactions don’t take more than 30 minutes while regular transactions are completed within 10 minutes and speed trans-

actions within five minutes. Bushahab said 2017 will see the launch of further initiatives to improve ease of business and meet the needs and aspirations of investors. The new steps are aimed to achieve a quantum leap in the business environment and economic performance of Dubai and they will improve investor confidence further and attract new regional and international enterprises to the emirate. “The Auto Renewal system introduced under our ‘Hassle-Free’ initiative received 62,115 messages in 2016 and it shows the level of re-

Dynamic City

Dubai is among the most dynamic cities in the world, according to the City Momentum Index (CMI) 2017 report issued by Jones Lang LaSalle (JLL), the global real estate advisory. The annual CMI report looks at the fastest-changing cities around the globe, tracking the speed of their changing economy and commercial real estate market, whilst identifying hubs that have the most dynamic attributes over the short and long-term. Placed at 11 in the global top 30, Dubai finished just behind Nairobi (10th) and London (6th) in the Europe,

Middle East and Africa (EMEA) market. Top of the list went to the Indian powerhouse Bangalore, followed by Ho Chi Minh City, Silicon Valley, Shanghai and Hyderabad which completed the top five. The Index covers 134 major established and emerging business hubs across the globe, and looks at the key ingredients of population, connectivity, technology and R&D, education, environment, real estate investment, property prices and economic output, among other areas. Despite challenges and a world of heightened risk, the 2017 edition of JLL’s CMI highlights remarkable dynamism in major global cities, many of which are consistently outperforming their national economies. “The world’s most robust, agile and open cities are generating considerable momentum and energy, and are taking the lead in shaping our future landscape,” said Craig Plumb, Head of Research at JLL MENA. “However, the world has become a riskier place since our last report. These disruptions are happening just as our cities are undergoing major structural change as the effects of globalisation, technological breakthroughs and rapid urbanisation combine to challenge the very fabric of our urban spaces.” Dubai and Nairobi – the urban stars of the Middle East and Africa Middle Eastern and African cities have struggled to maintain momentum, with many hit by the slump in energy and commodity prices. The notable exception is Dubai which has re-appeared in the Global Top 30, having fallen outside the top group in the last couple of years. g Gulf Property

INTERVIEW

Khalid Bin Kalban, Managing Director and Chief Executive Officer of Dubai Investments

DI to invest Dh5.5bn in industrial projects 46

Gulf Property

INTERVIEW

Gulf Property Exclusive

ubai Investments, developer of largescale industrial parks – said, it will invest Dh5.5 billion in new industrial projects, in addition to the Dh4 billion worth of real estate projects that the connglomerate is currently executing. Dubai Investments is also developing three large industrial parks in Saudi Arabia, Morocco and Angola. Khalid Bin Kalban, Managing Director and Chief Executive Officer of Dubai Investments PJSC and Chairman of Properties Investment, said, “We will make announcements on a number of industrial projects with investment to the tune of Dh5.5 billion (US$1.5 billion) in 2017 and 2018. “Besides, in a few weeks’ time, we are going to inject about Dh600 million in a 50:50 joint venture to develop Riyadh Investment Park, which will be developed and managed by us – on behalf of the company’s shareholders – including a Saudi partner.” Dubai Investments is also planning to replicate the success of Dubai Investment

At A Glance

Dh5.5 billion

new investment in industrial projects to be announced by Dubai Investments

Dh4 billion

investment in real estate announced in 2016

Dh3 billion

development value of Mirdif Hills mixed-use project

Dh600 m

investment in Riyadh Investment Park

Park (DIP) in other countries, including Morocco and Angola. “In Morocco, the negotiations are going on with the authorities, however, in Angola, the project is going ahead as planned. We might invest US$25 million in developing the industrial park.” Dubai Investments, which has two real estate development subsidiaries, Dubai Investment Real Estate Co (DIRC) – its wholly-owned subsidiary and Properties Investment, a 70:30 joint venture with Union Properties, is

developing a number of projects, including the Dh3 billion Mirdif Hills and the Dh600 million Green Community West project, currently in advanced stage of development. Green Community West is being developed by Properties Investments which has announced that the Green Community West Dubai Investments Park – Phase III is progressing as per schedule, with 76 townhouses in stage 1 to be handed over in the second quarter of 2017. The Green Community West DIP – Phase III, covering an area of 1.48 million square feet and a natural extension of the Green Community development, comprises a total of 210 townhouses, including 122 four-bedroom and 88 threebedroom townhouses, 16 duplex apartments, retail units, recreational centres, swimming pools, squash court and landscaped areas. The project progress and details were unveiled at a special event in the presence of Khalid Bin Kalban, Chairman of Properties Investment and Managing Director & CEO of Dubai Investments PJSC. Exciting payment plans spanning two years to eight years are also on offer directly from the developer. The project’s stage 2 will

“The fundamental drivers of UAE’s real estate sectors are strong, with investor confidence and interest on the rise. Concurrently, Dubai’s growing reputation as the business and leisure hub, coupled with the anticipated demand for Expo 2020, are expected to catapult the Emirate’s real estate sector in the coming months...” – Khalid Bin Kalban Managing Director and Chief Executive Officer Dubai Investments

Gulf Property

INTERVIEW

include 96 townhouses and is expected to be handed over by October 2017; and the stage 3, comprising 38 townhouses, 16 apartments and retail units, is expected to be completed by end of 2017. The total built-up area of the project is 1.01 million square feet and sellable area is 976,718 square feet. Khalid Bin Kalban said: “The fundamental drivers of UAE’s real estate sectors are strong, with investor confidence and interest on the rise. Concurrently, Dubai’s growing reputation as the business and leisure hub, coupled with the anticipated

Gulf Property

demand for Expo 2020, are expected to catapult the Emirate’s real estate sector in the coming months. Amidst these trends, Properties Investment’s Green Community project offers an unmatched investment opportunity. “Since its inception, Properties Investment has set new benchmarks in establishing pioneering residential concepts such as Green Community with unparalleled quality standards. The Company is aiming to continue its solid legacy through the Green Community West DIP – Phase III, with its town-

houses and duplex apartments offering robust opportunities to both end-users and investors.” Green Community West DIP – Phase III will also include an expanded Market section, with enhanced commercial and retail options to support the needs of the residents and visitors, added Kalban. Dewan Architects and Engineers are the lead consultants and Shapoorji Pallonji Mideast LLC are the main contractors of the Green Community West DIP – Phase III project. Covering 67 hectares of residential,

leisure, retail, and commercial properties, the Green Community development prides itself on its modern surroundings and tranquil environment. In an interview with the press, including Gulf Property, Khalid Bin Kalban, Managing Director and Chief Executive Officer of Dubai Investments PJSC and Chairman of Properties Investment, elaborated his thoughts on a number of issues related to the real estate sector and the economy. Excerpts:

Gulf Property: How do you

INTERVIEW

evaluate the present state of the real estate market? Khalid Bin Kalban: Investment sentiment is good. We see that the market has stabilised and it’s a good time to buy. This year, we do not see any negative possibility. However, there might be a bit of oversupply of residential units – so the prices could come under little pressure. We now know the contractors’ building capacity as well as the data on the number of new units coming in the market. However, there is no data on the demand and where the new demands are

going to come from. But the current situation is ideal for buying and I expect the business to stabilise and pick up once confidence comes back.

Where do you think the investors to come from? I expect more GCC investors. There may not be an influx of Russian and European investors to flood the market, however, I expect the local and GCC investors to start buying.

How did the strength of the US dollar affect the market? What about the im-

pact of the Brexit and the rise of Donald Trump? The strength of the US dollar has affected the real estate market as our currency is pegged to the dollar. So, if dollar strengthens, products and services become more expensive to international buyers. Brexit and Donald Trump’s election and his new policy guidelines have also affected the market a bit. However, Dubai’s market and economic fundamentals remain strong.

How is your international industrial park projects

going ahead? In a few weeks’ time we will be on the ground to start working on the Riyadh Investments Park in Saudi Arabia – our first major project in the kingdom. Riyadh Investment Park, which will spread across approximately 11 million square metres and strategically located at the periphery of the Saudi capital. To be developed in two phases, it will encompass warehouses, commercial showrooms, labour amenities, offices and other logistics facilities similar to DIP, the largest integrated commercial, industrial and residential community in the region. The project’s legal framework is in final stage. It will be structured through fund by a consortium of banks in which we will buy 50 per cent share with investment of Dh600 million and the rest to be funded by our Saudi counterpart. Once the funding process and the legal framework is in place, we will start works on the design and infrastructure of the project. We hope to break ground within a few weeks time. Our project in Angola is also moving ahead smoothly. We are planning to invest US$25 million in the first phase. We have already received the land and the company has also been registered. If completed, the Angolan project will be the first of its kind on the African continent, and similar to Dubai Investments Park. We are also planning to develop a similar project in Morocco, once the land is allocated and the company is formed, we could develop the project. g Gulf Property

INTERVIEW

DIP attracts Dh50bn investment to date D ubai Investments Park [DIP], the largest integrated commercial, industrial and residential community in the Middle East, has recorded Dh50 billion investment since its inception in the mid-1990s and is fast emerging as the preferred destination for businesses and residents alike, in view of its proximity to Dubai World Central, Dubai South and the Expo 2020 site. An indication to this is the increase in the number of tenants and sub-tenants in DIP, with over 100 new companies either leasing or subleasing premises in the 2,300-hectare business park. Similarly, the total area

Gulf Property

leased by the existing companies during 2016 has also increased by 33 per cent â&#x20AC;&#x201C; from approximately 6.5 million square feet to 9 million square feet, particularly in warehouse storage spaces. The total number of companies operating within the DIP is over 4,600, covering the entire spectrum of industries â&#x20AC;&#x201C; from medium to light industrial units in aluminium, steel manufacturing, chemicals, pharmaceuticals, textiles, plastics, oil and gas, construction, building materials and contracting sectors. During the year, DIP also witnessed a surge in subleasing of labour and accommodation rooms from 16,000 to 21,000 rooms. The increased capacity will help ac-

commodate 84,000 labourers compared to 68,000 labourers earlier. Reflecting its growing preeminence and surging demand, DIP has also announced the opening of a new 114-room 4-star Fortune Park boutique hotel to cater to the business and leisure travelers. The new hotel is part of the plans to open eight new hotels and serviced apartments in the next three to four years in DIP. To be built by individual investors, the hotels and apartments will be of various star categories. The new hotels will perfectly complement the growth of DIP as a citywithin-a-city. It will also provide a major boost to the

hospitality sector as Dubai expects to attract as many as 25 million visitors during Expo 2020, including 17.5 million overseas tourists. The emirate will require an additional 45,000 hotel rooms to match the rising demand by 2020 and an investment of nearly $7.1 billion (Dh25 billion) is expected in hotel projects. Omar Al Mesmar, General Manager of DIP, said: â&#x20AC;&#x153;In the last 17 years, Dubai Investments Park has grown from a unique concept on paper to a successful mixed-use project. DIP is the torchbearer in the development of business parks in the entire region, creating world-class facilities and attracting industries from across the globe over the

Dh50 billion

total investment in to Dubai Investments Park so far

Dh4 billion

total investment in Dubai Investments Park infrastructure implemented

90,000

size of the community at the Dubai Investments Park

12,000

number of residential units at the Dubai Investments Park

Dh228 million cost of building Al Houdh Interchange, next to DIP

84,000

“The total value of investments made by DIP tenants towards their facilities and factories over the years is approximately Dh50 billion....”

– Omar Al Mesmar General Manager Dubai Investments Park

workers’ accommodation capacity at the Dubai Investments Park

years, which goes in line with the Dubai Industrial Strategy. “DIP’s proximity to Expo 2020 site and Dubai South makes it the preferred destination for both investors and end-users. This is also leading to increasing demand for projects to develop hotels, serviced apartments within DIP.” The total value of investments made by DIP tenants towards their facilities and factories over the years is approximately Dh50 billion, he added. The growth of DIP comes amidst increased accessibility to and out of the business park, with the opening of the new Al Houdh Interchange, built by Dubai Roads and Transport Authority at a cost of Dh228 million. With the new interchange, DIP enjoys easy access from Sheikh

D DIP

At A Glance

Mohammed Bin Zayed Road [north as well as south], as also from Jebel Ali port thus ensuring hassle-free movement in and out of the park. “DIP’s world-class logistics, strategic location, state-ofthe-art facilities and business-friendly environment offers the right mix for local, regional and international companies,” Omar Al Mesmar said. Plans are also afoot to open the new British Columbia Canadian School (BCCS) within DIP by September 2017. The new school, the sixth within DIP, is being constructed at a total investment of Dh88 million, on a 25,000 square metre plot in DIP. The school will offer K-12 Kindergarten, primary and secondary programs, over 60 classrooms and accommo-

ubai Investments Park (DIP) is a unique, self-contained mixed-use industrial, commercial and residential complex operated by Dubai Investments Park Development Company. Spread across an area of 2,300 hectares (with 1,700 hectares leased), its master-plan was developed in 1997. It has been designed as a city-withina-city offering world-class infrastructure and outstanding facilities and services. A subsidiary of Dubai Investments PJSC, DIP is divided into three distinct zones – each setting the benchmark for high quality projects in a well-planned, fully-integrated master community development. DIP is strategically located within minutes from the Al Maktoum International Airport. g

date 1,500 students. Born out of a pioneering vision by Dubai Investments, DIP is today a booming community, accentuated by over 12,000 residential units, 90,000 residents, 20 million square feet of office space, 25 showrooms, six schools, six hotels, besides 20 residential buildings and a large staff accommodation. Over 95 per cent of DIP land is leased and 98 per cent of its industrial zone is occupied. DIP offers a wide array of warehousing, storage and commercial facilities for large, medium and smallsized enterprises; as also dedicated plots where companies can custom-build warehouses. Approximately 59.5 million square feet of space within DIP are readymade facilities, which includes warehousing

INTERVIEW

DII invests Dh1.1 bn in industries

ubai Investments Industries [DII], a subsidiary of Dubai Investments PJSC, has concluded investments in various projects of total estimated value of Dh1.1 billion across diversified sectors as part of its strategic expansion plans in the last two years. DII’s investments include Dh185 million in King’s College Hospital Healthcare LLC [total project value Dh700 million], Dh110 million in Emirates Aluminium Rolling LLC (Emiroll) in KIZAD, Abu Dhabi [total project value Dh370 million] and Dh30 million in MODUL University Dubai [total project value Dh32 million], targeting promising growth sectors such as healthcare, aluminium and education, identified as strategic in the UAE Vision 2021 and Dubai Industrial Strategy. g

and industrial units. Over the years, DIP has spent over Dh4 billion in enhancing and improving the infrastructure to international standards, which includes 140-km of internal road network and well-integrated water and electricity systems, the best of hospitals, educational institutions, hotels, retail outlets, supermarkets and other day to day necessities and recreational options for its tenants. g Gulf Property

INTERVIEW

Disruptive solutions to ‘fast-forward’ India 52

Gulf Property

Gulf Property Exclusive

ubai-based KEF Holdings has launched a gamechanging disruptive solution that could help solve India’s housing shortage and help fast-track developing massive homes to shelter India’s large population still living in slums and places without a roof. With almost a fifth of urban and rural households having limited access to housing facilities, the country needs to build 30,000-35,000 units per day for the next eight years. A majority of these houses need to be in the affordable segment requiring investment of more than US$2 trillion, according to a report by global accounting firm KPMG. India needs to invest more than Rs125 trillion (US$2 trillion) at current prices between 2014 to 2022, to meet its housing needs, which is over Rs16 trillion (US$260 billion) per annum, KPMG said. "Large-scale development o f

affordable housing projects is still a challenging proposition for many private developers," KPMG report said. The current housing shortage in urban areas is estimated at 19 million units. Of this, about 95.6 per cent is estimated to be from economically weaker sections (EWS) and low income group (LIG) households, who cannot afford houses costing above Rs 15 lakh. Neeraj Bansal, KPMG India head real estate and construction had said, “A project today takes anywhere between seven and eight years, of which about 20-30 per cent of the capital investment happens in the initial years. Liquidity from formal channels is available only for four to five years, and that too at the start of construction. Thus, the lack of long-term capital in the sector could be restricting entry of new players into the market." To solve this, KEF Holdings invested in a disruptive and game-changing technology that could solve India’s housing problem. KEF Infra, the infrastructure subsidiary of KEF Holdings, officially launched the KEF Infra One Industrial Park, the world’s largest and first-of-its-kind fully integrated offsite

manufacturing park in Krishnagiri, Tamil Nadu in India in December last year. Valued at US$100 million, KEF Infra One spans one million square feet and features a diverse range of cutting-edge technology that can revolutionise manufacturing and delivery processes in the construction industry. With a vision to fast forward India into one of the world’s leading hubs for sustainable construction, KEF Infra is at the forefront of Industry 4.0 and leverages world-class design and state-of-the-art manufacturing technology – providing high quality, meticulously engineered infrastructure solutions in a timely and cost-effective manner. Faizal Kottikollon, Chairman of the KEF Holdings, said, “Today, India is at the cusp of growth led by innovation. We are witnessing an age where technology is being effectively integrated into infrastructure for the first time - thereby heralding the Industrial Revolution 4.0. Our aim is to fast forward this progress through radically changing the infrastructure landscape in India. Offsite manufacturing of infrastructure reduces delivery time by up to two-thirds and considerably expedites the construction process.

INTERVIEW

“Nearly a third of India's primary schools do not have permanent school buildings; India has just 1.3 hospital beds per 1,000 people versus the norm of 3.5 beds per 1,000 people as defined by WHO; and, India is still short of nearly 20 million homes according to the latest Economic Survey. These are all urgent issues that need disruptive solutions. We believe the advanced automation and technology upon which KEF Infra delivers quality infrastructure can transform the status quo in India’s construction industry and essentially ‘fast forward’ the nation...”

– Faizal E. Kottikollon Chairman KEF Holdings

Faizal E. Kottikollon Founder Chairman KEF Holdings Gulf Property

INTERVIEW

“At KEF Infra, we challenge conventional building methods and move the industry towards an efficient, and automated platform. The launch of KEF Infra One is an important step towards achieving our vision of pushing forth the next phase of India’s growth through worldclass infrastructure. We are proud to introduce this revolutionary concept to the world.” In an exclusive interview with Gulf Property, Faizal Kottikollon, Chairman of the KEF Holdings, elaborated his thoughts on the company’s business. Excepts:

0Gulf Property: What is the current state of the KEF Infra facility in India? What is the production capacity

Gulf Property

of KEF Infra per day or per month? Faizal Kottikollon: The KEF Infra One Industrial Park in Krishnagiri, Tamil Nadu, India was officially launched on 19 December 2016, in the presence of Infosys Founder, Narayana Murthy, whose company Infosys is one of the first clients and patron of the KEF Infra proposition. Established in a fully-provisioned campus, spanning over a million square feet, KEF Infra One is the world’s first and largest integrated end-to-end offsite manufacturing technology facility, valued at US$100 million. The facility houses the various factory units that encompass the offsite manufacturing process from start to end, including Pre-

cast, Prefabricated and Modular Rooms Bathrooms and Modular MEP, Joinery & FitOut, Glazing and Stone Processing units – all of which operate on highly advanced Industry 4.0 automation and robotics. These state-of-the-art factory units boast scalable production capabilities. Our Precast plant has the capacity to produce 5 million square feet per year. Our Joinery and Fit-Out unit, which is one of the largest in Asia, will soon be able to produce 100 doors and cabinets a day, after the implementation of full automation.

How many projects have been delivered by KEF Infra so far? What is the value of the order book at

hand? KEF Infra is currently working on a number of different projects across varying building types. To name a few, we are currently in the last phase of developing our flagship healthcare project, MEITRA Hospital in Calicut, Kerala in India. KEF Infra has also entered the commercial segment, with the phenomenal 1.6 million square feet Embassy 7B project in Bengaluru, Karnataka, India, which we aim to deliver in a record 13.5 months. This fully offsite-constructed commercial building is a first of its kind in the subcontinent. In addition, we are developing a 4,00,000 square feet manufacturing campus for Bosch Bidadi, in Bangalore and will be com-

INTERVIEW the year. In the mid-term, our target is to make KEF Infra a company with sales of at least $1.5 billion by 2020.

“Our revenue for 2016 stood at US$93 million, growing by six times. We expect this momentum to continue in 2017, with revenue targets set at US$254 million. Our target is to make KEF Infra a company with sales of at least $1.5 billion by 2020...”

– Faizal Kottikollon

pleting the construction on that campus in just 11 months. Other noteworthy projects that we are working on include GEMS Modern Academy in SmartCity Kochi which is the first school in Kerala being operated by GEMS Education. The ultramodern school spanning 1.3 lakh square feet, will be completed in a record time of just 5.5 months and will be handed over at the end of April, 2017. Similarly, the handover of a 2,92,000 square feet project in Bangalore, Vaishnavi Signature, will be done in a short 8 months. We have been signed on for four projects with Infosys, covering two million square feet in total, ranging from commercial buildings to ‘spe-

cialised infrastructure’, namely the Infosys Clock Tower. Standing 135 metres tall, this clock tower which will flank Infosys’ corporate university campus in Mysuru, Karnataka, India, will be the tallest in the world. With respect to specialized infrastructure, we are also preparing to deliver the first commercial version of the ‘Glass House’, famously conceived and designed by Philip Johnson, to our partners in the US.

At the end of 2016, what was the total volume of production and the total sales value of the output delivery? As mentioned above, 5 million square feet is the volume of production.

At A Glance

$100 million

investment made by KEF Holdings in KEF Infra One

$93 million

revenue recorded by KEF Holdings in 2016

$254 million revenue projected by KEF Holdings in 2017

$1.5 billion

annual turnover projected by KEF Holdings in 2020

What was KEF Infra’s total revenue in 2016? How profitable has the venture been, so far? The year 2016 has been quite momentous in putting KEF Infra on the map, as a start-up that can have a significant impact on the national and global infrastructure sector. Since establishment in 2014, the facility has received strong interest, which saw a peak last year. Consequently, our revenue for 2016 stood at US$93 million (INR6.35 billion), growing by six times over the revenue earned in the previous year. We expect this momentum to continue in 2017, with revenue targets set at US$254 million (INR17.30 billion) for

What has been the total investment in the KEF Infra factory at Krishnagiri factory so far? Do you have plans to expand the facility and production base at Krishnagiri? If yes, when, how big – in terms of square feet area of expansion and capacity output volume? How much investment has been earmarked for expansion? Of the US$100 million earmarked for the flagship Krishnagiri facility, we have invested US$70 million so far. We are constantly trying to enhance our capabilities at KEF Infra One, and as a part of this process, we will look to expand the facility further. The scale and scope of expansion will be determined based on ongoing assessments over the next year.

Does KEF Holdings plans to develop more factories such as the one in Krishnagiri – in other parts of India? If yes, what would be the investment outlay, say in five-to ten years? Our plan for the next five years includes strategic expansion across India, with plans to open facilities such as KEF Infra One in Maharashtra, Delhi, and Andhra Pradesh, with the four facilities boasting a collective capacity of 37 million square feet. In our view, these markets show a lot of promise for infrastructure development, especially given the rising demand for social infrastructure such as schools, hospitals and homes, which we specifically aim to cater to. Gulf Property

INTERVIEW

How many people are currently employed by KEF Infra? KEF Infra One currently employs an over 1,000-strong global workforce, including specialists and technicians. We are also keen to locally sourcing talent from the Krishnagiri district, and are in the process of providing training and upskilling towards this end.

How is KEF Infra changing the construction industry in India? How is the industry stakeholders seeing this new phenomena? Are there resistance – or are clients accepting the new industrial process and benefitting from it?

Gulf Property

Our goal at KEF is to provide essential social infrastructure, including schools, hospitals and homes. These segments are currently faced with a huge infrastructure deficit. For example, nearly a third of India's primary schools do not have permanent school buildings; India has just 1.3 hospital beds per 1,000 people versus the norm of 3.5 beds per 1,000 people as defined by WHO; and, India is still short of nearly 20 million homes according to the latest Economic Survey. These are all urgent issues that need disruptive solutions. We believe the advanced automation and technology upon which KEF

Infra delivers quality infrastructure can transform the status quo in India’s construction industry and essentially ‘fast forward’ the nation. While the market is slowly adapting to this new way of thinking, which is usually the case with any novel idea, KEF has already won the trust of several governmental and private sector stakeholders. Our partners, including Infosys, Embassy Group, Bosch and others believe the KEF way can truly create a difference. We expect more stakeholders to adopt this responsible, cost-effective and fast approach to infrastructure development in the coming years.

Do you see the 3D printing in construction catching up and disrupt the industrial process that you have just started – say in the next 5-10 years? We are living in exciting times, and for us at KEF, we are honoured to be at the forefront of a new and sustainable future for the infrastructure sector in India and other emerging markets. KEF Infra One builds on a diverse range of cutting-edge technology that can revolutionize manufacturing and delivery processes in the construction industry. We definitely see these technologies converge and give way to new and better forms of infrastructure devel-

INTERVIEW

opment, such as 3D printing. In the current scenario, however, we believe automation that can provide highly scalable solutions will prove to be more effective in serving the needs of the market. As we stand at the cusp of the fourth industrial revolution, it is safe to say that digitization will play an increasingly significant role across industries over the next decade.

KEF Infra’s construction technology is a befitting solution to India’s massive housing and urbanisation needs. As the government plans to develop 295 million low-cost homes to shelter everyone in India by 2022, how do you see

the construction industry evolve with this massive task and opportunity to change urban India? KEF Infra proposition is indeed a befitting solution to India’s housing needs. Interestingly, one of the most significant achievements for KEF Infra in 2016, was our success in developing a prototype home that can specifically address this challenge. Through the advanced manufacturing processes that we apply for all our ongoing projects, we have been able to create a highquality home that carries a price tag of just INR5.99 lakhs or US$8,500. This revolutionary home is fully provisioned with two

bedrooms, bathroom, kitchen and living room space – all of which can be built in just two hours - catering to the unique needs of lower income groups (LIG) and economically weaker sections (EWS) in India. We can even fit-out the home with furniture, including a sofa, dining table, book shelf, kitchen and bathroom cabinets, beds and wardrobes, at just an additional cost of $1,600 (INR1 lakh). Not only does this solid concrete home promise a guaranteed structural lifespan of 100 years, and the dignity of a decent home to those who need it the most, we believe it can be an easily replicable model for India

and other countries facing massive housing deficits.

Will the KEF Infra go public? If yes, when will you go for the Initial Public Offering (IPO)? KEF Holdings, which is registered in Singapore and headquartered in the UAE, is currently operating as a fully independent, debt-free company at the group level, managed by a Board of Directors. While we are actively exploring relevant partnerships for our subsidiaries, which include KEF Infra, KEF Health, KEF Education, KEF Metals and KEF Investments, KEF Holdings will continue to operate as a privately-owned business. g Gulf Property

NEWPROJECT

Dubai Properties fast tracks Dh1bn 1/JBR

ubai Properties (DP), a leading Dubai-based real estate master developer and asset manager, has awarded a contract to Dubai Construction Company (DCC) to build the 46-storeyed 1/JBR tower with a development value exceeding Dh1 billion. Prices of residential units start from Dh5.39 million apiece within the luxury beachfront project that will host only 161 units – with average price of units crossing Dh6.5 billion (US$1.8 billion). Work is now steadily advancing and on track for a Q4 2019 completion. Located at the entrance to Jumeirah Beach Residence (JBR), one of the most exclusive lifestyle destinations in the Emirate, 1/JBR will epitomise unparalleled luxury and indulgent beachside living. Abdulla Bin Lahej, Group

Gulf Property

CEO, Dubai Properties said: “1/JBR is an exemplary development that reinforces DP’s position as a creator of master-planned destinations and it is set to redefine the definition of luxury sea-front living in Dubai. This is exemplified by the extremely positive investor sentiment in the entire JBR area, with Dh2.89 billion worth of real estate transactions recorded in just 6 months of 2016. “Our luxury portfolio of destinations is strategically developed to reinforce Dubai’s position as the capital of luxury on a global scale and we have carefully chosen our project partners for this development in order to ensure only the highest quality and specifications for the building works, as well as a timely project delivery.” DCC, a Dubai-based construction company with more than 50 years of experience

in the region specialising in building residential, commercial, mixed-use building, hospitality and leisure complexes, sees the 1/JBR project as an opportunity to bring to life a future icon on Dubai’s skyline. A spokesperson from DCC commented, “By using only the most innovative techniques, we are able to bring to life the most iconic designs with the highest quality of detail and finish. This approach has allowed us to deliver many memorable and groundbreaking landmark buildings in the UAE and across the region. “We are delighted to have the opportunity to be a part of such a landmark project as 1/JBR and our reputation, talented team and decades of expertise will complement DP’s vision for this unique tower development.” JBR is the most sought-

after lifestyle destination among residents and tourists and is globally recognised as a leading mixed-use destination, welcoming over 12 million tourists annually. 1/JBR will be gracing the JBR skyline and offer the bespoke 5star luxury amenities Dubai is known for. The 46-story tower, with its panoramic views of the Dubai Eye and Palm Jumeirah, offers indulgent living on a new scale as the JBR’s future luxury icon with indulgence infused into every detail. Each of the 161 large units, which range from two-, three- and four-bedroom apartments and five-bedroom penthouses, will have high-end finishings and fixtures from floor to ceiling windows. Each apartment comes with two privately appointed parking spaces as well as private elevators for the pent-

Saudi-Sharjah venture to build projects

house apartments. The building façade perfectly complements the ‘A’ grade interior with unique and animated lighting making its mark on the surrounding lifestyle boulevard – The Walk. Dubai Properties is a leading Dubai-based real estate master developer. It’s diverse real estate portfolio responds to the evolving needs of Dubai through the development and management of a host of mixed-use contemporary residential, retail, commercial and retail developments including: the upmarket residential towers at

Jumeirah Beach Residence(JBR and 1/JBR), the commercial and residential mixed-use developments in Business Bay, the residential communities at Dubailand (The Villa, Al Waha, Arabella, Mudon, Remraam, and Serena) and the residential and hospitality projects at Culture Village around the Dubai Creek, (Dubai Wharf, Manazel Al Khor and the Anantara Dubai Creek Hotel), and the growing portfolio of community retail within its leasing communities including Layan, Shorooq, Ghoroob, Al Khail Gate communities and Nuzul. g

audi Prince Khaled Bin Al Waleed’s KBW Investments has teamed up with Sharjah-based Basma Group to develop new communities in Sharjah, that will help expand the urban landscape of the emirate. Basma Group is led by its Chairman, Sheikh Sultan bin Ahmed Al Qasimi, sonin-law of Dr Sheikh Sultan Bin Mohammed Al Qassimi, Supreme Council Member and Ruler of Sharjah. KBW Investments and Basma Group last month announced the joint formation and launch of Arada, a partnership enterprise dedicated to the creation of prime residential properties. The agreement was inked in Sharjah in early December of last year between Prince Khaled bin Alwaleed bin Talal, founding Chairman of KBW Investments, and Sheikh Sultan bin Ahmed Al Qasimi, Chairman of Basma Group. Conceptualised with the intention of delivering superior properties, Arada will pursue the development and timely delivery of projects. The newly-established company will draw on the vast experience of its founding parties and the breadth of their diverse commercial portfolios. Sheikh Sultan said: “The property sector remains highly attractive which is one of the country’s key pillars for the future. We have made important strides towards aligning our goals with the leadership’s vision and supporting its ambitious aspirations in partnership with KBW Investments.” Prospective residents and

NEWPROJECT

investors in the UAE and across the GCC will be presented with quality Arada Living experiences and investment opportunities to own homes. Arada with a launch focus on Sharjah, will build on the government’s vision to position the emirate as a vibrant cultural and business hub. Sheikh Sultan bin Ahmed Al Qasimi will serve as Arada’s Chairman, while Prince Khaled Bin Alwaleed bin Talal will act as the company’s Vice Chairman. Prince Khaled said: “Over the past few years, KBW Investments has been carefully curating a group of companies that work together across sectors, and have amassed the expertise, scale, and capabilities to contribute to Sharjah’s burgeoning real estate segment. For families and investors alike, owning a property is a rewarding opportunity and presents a solid investment vehicle to plan for the future. Together with Basma Group, we’ve commenced working on Arada projects that will address this growing consumer need with full strength and confidence.” Prince Khaled added that an ARADA project announcement would be made very soon. In 2014, the Sharjah government passed a law opening the door for expats of all nationalities to own property in the emirate thus driving the need for more residential projects. During the same year, the Sharjah Urban Planning Council was formed to create urban communities that promote sustainable cultural and environmental principles. Arada will play a pivotal role in driving Sharjah’s development. g Gulf Property

NEWSUPDATE Sushmita Sen, the first Indian to win Miss Universe title in 1994 in Manila

“Miraclz, the first project I initiated as a brand ambassador with Danube group, is very personal. It summarizes my relationship with every member of the Group...”

Danube to deliver 831 units worth Dh1.1 bn – Sushmita Sen

Gulf Property

At A Glance

Dh2.2 billion

value of Danube Properties’ project portfolio

By Diana Fernandez Staff Reporter anube Properties, a Dubai-based developer, said it will deliver 831 units, worth Dh1.1 billion

in 2017. The developer launched Dh1 billion worth of projects in 2016 and sold out properties worth Dh953 million, including 95 per cent of the Dh400 million Miraclz by Danube – the developer’s seventh real estate project. “We have doubled our portfolio in 2016 – a year when we also opened two international offices – including Mumbai office,” Atif Rahman, Head of Properties at Danube Group, told the media at a gathering that also featured Sushmita Sen – the Bollywood actress and India’s first Miss Universe in 1994. Sushmita Sen is Danube Group’s fourth brand ambassador – that helped the company to achieve a higher success. Danube, a building materials supplier established in 1993, entered Dubai’s real estate market in 2014 with Dreamz project with 171 townhouses – almost ready for delivery. Since then, Danube launched seven projects – Dreamz, Glitz I, Glitz II, Glitz III, Starz, Glamz and Miraclz – with a comSushmita Sen with bined development value exher killer smile ceeding Dh2.2 billion. “The year 2017 is a re-

Dh1.1 billion

markable year for us when we are going to start delivering our first project in the first quarter as soon as the electricity and sewage connects are given,” Atif Rahman said. “This year we are also going to hand over 831 properties to customers, worth more than Dh1.1 billion.” Danube recently opened its two international satellite offices in Mumbai and Riyadh and is planning to have their headquarters in Abu Dhabi, Qatar, Delhi and Kochi fully operational in 2017. Rizwan Sajan, Founder and Chairman of Danube Group, revealed a glimpse of their upcoming project which will be announced in two months. “I am so blessed to know that our clients are confident that every project we launch are made carefully and are delivered on time. Our policy is simple – launch a project, make sure we sell that project, we start the construction of the project and deliver it so that investors will get their property on time.” Sajan said. “With Danube, we can ensure that once they invest, the projects are delivered as promised,” he added. The new project will be a resort-type, low-rise community. He said, Indian Government’s demonetisation has affected sales. “Since the opening of our Mumbai office last year, we sold 50 units in India,” Sajan says. “However, the number would have been higher. So,

worth or properties will be delivered by Danube in 2017

Dh1 billion

worth of properties were launched by Danube in 2016

Dh953 m

worth of homes were sold out by Danube Properties

yes, the demonetisation has slightly affected our sales.”

Danube Miraclz

Danube Miraclz, the company’s seventh project in line with a construction cost of Dh400 million is already 95 per cent sold. Miraclz will have 591 units of studio, one-bedroom and two bedroom apartments and retail shops. Sushmita Sen, the brand ambassador of Miraclz said, “Miraclz, the first project I initiated as a brand ambassador with Danube group, is very personal. It summarizes my relationship with every member of the Group.” Sen added that a lot of developers can finish their projects and succeed yet Danube did not just earn consumer trust but was able to sustain it for a long period of time. Miraclz is located in Arjan, next to Miracle Garden and is scheduled to be delivered in June 2019. The project embodies a unique concept that maximizes spaces by transforming the living room into a bedroom. Miraclz offers a selection of 395 studios, 132 - one bedroom and 64 - two bedroom

NEWSUPDATE

fully furnished apartments each fitted with modular furniture and a European technology convertible sofa that transforms into a full-sized bed at a gentle pull. Studio apartment transform from a spacious living room by day and a comfortable guest bedroom at night. Eight retail spaces will be available within the community. Danube has appointed Atlas Foundations as the enabling contractor for Miraclz Tower, which is currently in detailed design stage. Sushmita Sen, the 1994 Miss Universe winner, was appointed as Danube’s face for its Miraclz Tower. Sen is a notable personality in India and all over the world who pursued her Bollywood career after her reign as Miss Universe. “When Miraclz’s first campaign hit Dubai, I have just landed and people who live here and those in social media communicated to me that Sheikh Zayed Road is smiling. That summarises what it is for me to be the face of the project. One characteristic of Danube is to put a smile on consumers’ faces,” Sen explained. She also said that one of the coolest things about Danube is that it creates living spaces for single working people, that never succumbed to recession and it continues to appreciate because everybody wants their own space. It’s only the high end properties that go through recession. I think that is one of Danube’s secrets to success, as well. Sen, the first Indian woman to grab the Miss Universe crown, acknowledged Rizwan Shajan’s humble request to become the project’s face. He described Sajan as gracious, direct and man of his words. g Gulf Property

NEWSUPDATE

Gemini fast-tracks Dh300m Splendor G

An artist’s impression of Gemini Splendor, the maiden project by Gemini Property Developers

emini Property Developers, a boutique real estate developer, has completed 24 per cent construction of the Dh300 million Gemini Splendor – the company’s first luxury residential project at Sobha Hartland. The developer has appointed Al Jihan Gulf Horizon Contracting LLC to build Gemini Splendor. The construction of the Gemini Splendor, luxury residential project marks Gemini Group’s foray in to the region’s real estate market. The high-end project is scheduled for completion in

Gulf Property

the first quarter of 2018. The G+8-storey residential building is being built at Sobha Hartland within the Mohammed Bin Rashid City, Dubai. The project with a built-up area of over 320,000 square feet will include 134 residential units comprising spacious one, two and threebedroom apartments, penthouses and townhouses equipped with state-of-theart amenities. Apartment units range from 780 square feet to 3,400 square feet. The community will also have comprehensive retail, shopping and entertainment facilities, along with much

needed green spaces. “As a new developer, we are determined in our vision and commitment – to deliver on time, within the budget and most importantly, with the best quality,” says Sudhakar R. Rao, Managing Director of Gemini Property Developers. “The best hall mark feature of our project is the smart home system supplied by reputed USA based brand “Lutron”. The project is located at the center of Sobha Hartland – a new mixed-use development located between Al Khail Road and Meydan – and is close to the downtown

of the future – the massive mixed-use project that has become a major destination. The project will border Meydan One on one side, MBR city – District One on the other and Meydan Grandstand at the backdrop. “As the surrounding developments take shape, Sobha Hartland will become the most sought after destination for people to live due to its strategic location with strong road and rail connectivity embedded with great lifestyle, self-contained community, leisure and entertainment. It is already surrounded by two highways

NEWSUPDATE

Gemini Splendor is on fasttrack and scheduled for delivery in 2018

“As a new developer, we are determined in our vision and commitment – to deliver on time, within the budget and most importantly, with the best quality. The best hall mark feature of our project is the smart home system supplied by reputed USA based brand “Lutron”. while two new rail networks are expected to pass by the development,” Sudhakar R. Rao says. “As more and more people begin to settle down, value will appreciate manifold. In addition to the location, our projects will create a new benchmark for quality and amenities. It will create a new signature of quality in real estate development.” Gemini Splendor is conceptualised by renowned consultants, Aedas which is one of the five largest international architectural firms, while detailed designs were carried out by Dubai Consultants. The project, once completed, will offer excellent views of the Dubai skyline via two Expressways as well as nearby Ras Al Khor bird sanctuary. The project is self-financed by the group as well as funded by banks and the construction of the project is not linked to off-plan sale of the units. Enabling works were ear-

Sudhakar R. Rao, Managing Director of Gemini Property Developers

lier carried out by National Piling, before the main contractor, Al Jihan Gulf Horizon Contracting LLC came on board as the main contractor in August 2016. The company has already registered itself as a developer as well as the project with the Real Estate Regulatory Authority (RERA) and has opened Escrow account. Sailesh Jatania, Gemini’s

Chief Executive Officer, said the project is being constructed at a time when Dubai’s real estate market is witnessing signs of upturn. “We are developing our first project at a time when new investment is pushing sales in Dubai’s property market so much so that it has witnessed Dh12 billion worth of transactions in the first two weeks – or the first ten working days of 2017. “This causes for optimism as we also have seen a renewed interest among buyers as we construct Gemini Splendor.” Dubai’s Roads and Transport Authority (RTA) has already planned a new purple metro line running under the ground at Hartland. But another rail line has been planned to run near the project. Sobha Hartland is the only luxury community development located on the Dubai Water Canal. Gemini Property Developers is the real estate division of Gemini Energy Group,

– Sudhakar R. Rao, Managing Director Gemini Property Developers

founded in 1986 by Sudhakar R. Rao. The group was originally started as Sievert Group, specialising in technical Testing and Inspection before recently divesting that business to a French multinational giant. Gemini group has plans to develop yet affordable luxury properties across the region, adhering to highest standards of quality in design, technology and materials. It strives to build a reputation based on quality, efficiency, meticulous planning, top quality amenities, practical designs, timely completion and hand-over of projects. g Gulf Property

MATERIALS

Ducab opens lab to fix cable fire The new firetesting laboratory set up by Ducab to ensure they are fire-resistant

Gulf Property Staff Report

maar Properties, developer of the world's tallest building, will collect $332.4 million (Dh1.22 billion) from its insurer to cover damage sustained during a dramatic New Year's Eve fire at the Address Hotel on December 31, 2015. Emaar Properties, which also built and operates the Address hotel has agreed with Arab Orient Insurance to recover the Dh1.22 billion

Gulf Property

claim related to the blaze. Dubai police have blamed faulty wiring for sparking the fire at the 63-story tower at The Address Downtown. The hotel sits near the mammoth Dubai Mall and the Burj Khalifa, the world's tallest tower. Outside experts say the type of cladding used on the hotelâ&#x20AC;&#x2122;s exterior and that of many other buildings in the Emirates likely helped fuel the fire. More than 1,000 buildings in the UAE still have a form of external cladding that is at high risk of rapidly spreading flames in

the event of a fire. In December 2016, a fire broke out at an upmarket apartment block on the artificial Palm island in Dubai but there were no immediate reports of any casualties, the emirate's media office said. It was the latest in a series of fires to hit tall buildings, including residential compounds and hotels, in the Gulf's tourism and business hub over the past two years. While authorities are upgrading the building fire safety codes, the faulty cabling and lack of fire-resistant cladding could continue

to cause and ignite fire. Meanwhile, in order to reduce such occurances, Ducab, the UAE-based leading manufacturer of highquality cables and cabling products, announced the opening of a newly built state-of-the-art fire testing laboratory specifically built for the Ducab FlamBICC range of Fire Performance cables, according to BS EN/IEC standard and Ducab NuBICC nuclear cables tested in accordance with IEEE International standards. According to Civil Defence

High-rise fire incidents fast catching up

he latest high-rise blaze at Sulafa Tower in Dubai Marina in Dubai in December 2016, again focuses attention on the issue of fire safety in tall buildings. Residents had to be removed from Sulafa Tower in Dubai Marina on a Wednesday afternoon in December 2016 as flames spread through the 75-storey, 285metre high residential building. Civil defence crews were able to bring the blaze under control in about three hours, with no injuries reported. Previous to the Sulafa Tower blaze, firefighters have had to deal with three major incidents in the emirate in the past four years, reportedly fuelled by com-

authorities and Ducab, major loss of property and life can be avoided by eliminating substandard and non-certified cables, which produce poisonous gases with black smoke obscuring visibility in the event of a fire. “Ducab is committed to working closely with the construction industry to ensure cables and accessories are certified to meet strict International codes of practice thereby reducing the risk to life and property and pride itself on producing and achieving independent UAE Civil Defence, HongKong Fire Authority and other International approvals with LPCB and BASEC Accreditation,” a company spokesperson said. “Ducab cable manufacturing ensures all cables are subject to extensive testing

bustible aluminium panelling. The latest high-rise blaze in Dubai again focuses attention on the issue of fire safety in tall buildings. These included The Torch apartment building last year, in which more than 100 flats were severely damaged, and the 2012 blaze that gutted Tamweel Tower in Jumeirah Lakes Towers. Most notable was the fire that broke out at The Address Downtown Dubai hotel on New Year’s Eve, causing severe damage to the tower. In Ajman, a fire destroyed dozens of apartments in towers eight and six of the Ajman One complex. The exact cause of the fire was not determined by authorities, but an Ajman Police laboratory report stated that flaming material fell from a flat and landed on construction waste in front of Tower Eight. g during each phase of production, certified by independent LPCB and BASEC UK to meet the latest BS EN, IEC and IEEE standards and current Code of Practice. These standards provide recommendations and guidelines to the industry for the selection and installation of fire resistant power and control systems.” The new fire test facility at Ducab is equipped with the latest laboratory, operated by highly qualified and trained manpower and offers various fire and smoke tests in accordance with BS8519 Code of Practice. IEEE 1202 is specifically used for testing Ducab NuBICC range of nuclear grade cables making it the only facility to conduct this test in the region. The BS EN 50399 test is a new require-

Ducab Flam BICC

ucab FlamBICC range comprises of special Fire Performance and fireresistant cables that can be used across various applications such as in schools, shopping malls, mass transit systems, special equipment in hospitals, and in essential safety circuits such as fire detection, fire alarms, and voice alarms. Ducab FlamBICC cables are especially installed for power supply to equipment used in fire-fighting, elevators, sprinkler pumps and in large complex buildings, where fire strategy involves evacuation of occupants in a phased manner. Ducab full range of FlamBICC cables are rigorously tested and approved to meet the life and fire safety objectives of fire survival

ment to meet CPR (Construction Product Regulation) for assessment of the ‘reaction to fire’ performance of cable which will be mandatory across Europe by 1st July 2017. Mohammed A. Al Mutawa, Ducab’s Chief Commercial Officer, said: “Ducab commits to meet and adhere to all new certification standards as laid down by the UAE and international authorities, and we are confident of meeting the new standards in the UAE as well. “As a respected UAE national company, we believe that we have a responsibility to elevate the overall cable standards in the industry and reduce instances of loss to property and life due to noncertified and fake cables with their black smoke and acid

MATERIALS

time as determined by the British Standard Codes Of Practice (BS 8519). These intensive tests include the vertical flame, CWZ, smoke density measurement and fire resistance tests with F120 and PH classification where the cables are verified for circuit integrity during fire. The test subjects the cable sample to the direct impact of fire, mechanical shock and a water jet simultaneously for different time related periods, between 30 to 180 minutes. Low Smoke and Zero Halogen features are also put to test to ensure the cable does not emit black smoke or toxic halogen gases, providing for better visibility in the event of a fire and ensuring that sensitive equipment in the surrounding areas is not adversely affected. g halogen emissions in a fire. “Our state-of-the-art laboratory will test all Ducab FlamBICC series cables, ensuring that all material used will behave predictably in the unfortunate instance of a fire. It is imperative to gain as much time for a safe evacuation as possible in the event of a real fire scenario.” A UAE-based professional manufacturer of power cabling solutions, Ducab works closely with UAE Civil Defence in ensuring public safety. Ducab’s PowerOverFire initiative, launched during 2015 is a mobile roadshow in a custombranded 40-foot mobile display unit that travels the UAE to distribute information to the public as well as to traders and retailers in the electrical product supply chain. g Gulf Property

Sobha fast-tracks Dh44bn pipeline NEWSUPDATE

Gulf Property Exclusive

obha Group last month released the first phase of 27 villas – the four-bedroom Quad Homes – part of a cluster of 80 such homes at its US$4 billion Sobha Hartland development in Mohammad Bin Rashid (MBR) City. Sobha said that the freehold town houses will be arranged in small clusters of up to four properties each and contain 3,300 square feet of space. Each one will have three floors with a private lift, a two-car garage and a sky roof. Prices range from Dh5.3 million to Dh5.6 million, with a split payment allowing 50 per cent to be paid during construction, 10 per cent on handover and the rest over a further two-year period. These properties will also have proximity to the Dubai Water Canal as a factor, says company officials. The launch of these luxury villas comes at a time when Dubai’s property market witnesses a challenging time amid declining prices and sales volume – especially within the luxury segment. “Sales have picked up across various segments in Dubai’s real estate and I think the market has bottomed out,” PNC Menon,

Gulf Property

Founder Chairman of Sobha Group, told a media gathering. “There are signs of new buyers, especially from China, entering the market although we have customers coming in from India, Middle East, CIS and European countries as well. “The largest group of property buyers are Indians, of course and they represent about one fourth of the investors in Dubai’s real estate market.” Although investment by Indians in Dubai’’s real estate has declined by 40 per cent to Dh12 billion in 2016, down from Dh20 billion in 2015 – they still represent the largest foreign investor group in Dubai. Menon is also not worried about the oversupply of homes in Dubai. “There are about 500,000 homes in the emirate and with a growth rate of 4 per cent, you will see the annual average addition of 20,000 homes in the market,” he says. “Dubai has a stomach to absorb that and with the current level of economic growth and activities, the market will be able to absorb the new home supplies. “Besides, Sobha Hartland is located at the heart of Dubai – you can’t be wrong in buying a property in Sobha Hartland, especially now – when the property prices are relatively low. “Despite all the negativity in the world, Dubai still re-

mains one of the best places to invest in property, doing business and for living and quality of life. “Real estate is a long-term business and it goes through the regular cycles. We are currently at the bottom of the cycle and it can only get better from here on.” He said, sales have picked up and villas are offered at Dh1,650 per square feet. “It will definitely go up in the next few years, once completed due to the wonderful location on Al Khail Road, close to Burj Kahlifa, Dubai Mall and Meydan – that creates a new vibrant downtown at the heart of the city. He also said that each home will be diagonally arranged from its neighbour offering privacy to each house. He also said that the townhouses will include walk-in closets, solar panels, and a choice of home automation. “This is the best time to buy property in Dubai and the UAE. The current prices and payment terms might not be available in future, expecially if the market picks up, every piece of property will become expensive,” he says. “So, those who are planning to live here for a longer period, should invest in your home and this is the right time.” Sobha Group has a development portfolio of Dh44 bil-

lion (US$12 billion), including Dh13 billion Sobha Hartland and Dh33 billion Meydan Sobha – a neighbouring district within Mohammed Bin Rashid City and on Al Khail Road. “Over the years, we have sold about Dh9 billion (US$2.5 billion) worth of projects amongst the Dh44 billion portfolio,” Menon says. “On an average, we usually sell about Dh2-3 billion worth of properties every year. However, last year, we sold properties worth of Dh1 billion – our lowest in recent years.” Last year, Sobha Group signed a deal with the Umm Al Quwain Government to develop a resort city on an island, named Ferdous Sobha project – a Dh25 billion project. The launch of Quad Homes — where the developer places a premium on greenery and natural light — comes just days after Dubai Land Department reported a whopping Dh12 billion worth of land deals within the first two weeks of 2017 – a new record and a reflection of the strong investor sentiment. Quad Homes on its own will occupy 2.4 million square feet out of the 8 million square feet falling within the wider Hartland. The Phase 1 apartments at Hartland are due for delivery by year-end and the first villas by late 2018. Sobha Hartland is a resort-

NEWSUPDATE PNC menon, Founder Chairman of Sobha Group

“There are about 500,000 homes in the emirate and with a growth rate of 4 per cent, you will see the annual average addition of 20,000 homes in the market. Dubai has a stomach to absorb that and with the current level of economic growth and activities, the market will be able to absorb...”

– PNC Menon Founder Chairman Sobha Group

Gulf Property

NEWSUPDATE At A Glance

Dh44 billion

development value of the ongoing projects by Sobha

Dh33 billion development value of Meydan Sobha

Dh13 billion

current development value of Sobha Hartland

Dh9 billion

worth of sale concluded by Sobha LLC so far

Dh2 billion

value of annual sale by Sobha LLC in Dubai

Dh25 billion development value of Ferdous Sobha project

Dh1 billion

worth of property sale concluded by Sobha in 2016

Dh3 billion

expected sale value of homes by Sobha in 2017

style luxury housing project, encompassing 8 million square feet of freehold community in Mohamed billion Rashid Al Maktoum City. It’s close proximity to Dubai’s top attractions makes it a sought-after project. At Sobha Hartland, residents will have access to wide selection of world-class amenities like two international schools, nurseries, malls, cafes, tennis courts, yoga centre, swimming pool, clubhouses and spas, mosques,

Gulf Property

and healthcare facilities. Moreover, the project is just three kilometers away from Dubai’s top attractions. This makes Sobha Hartland an ideal long-term investment for Emiratis.

Offer for Emiratis

Sobha Group has also announced an exclusive offer only for UAE nationals to avail of while investing in a property at Sobha Hartland. This special offer will allow Emirati nationals to get 2 per cent DLD fees waiver when they book homes directly from the developer Sobha Hartland. Emirati investors will have an option of either choosing from a range of studios, apartments, duplexes, villas or quad homes and can avail of the special payment plan. The UAE’s thriving property market is mostly dominated by investors both foreign and local including UAE nationals. Sobha Group lists Emiratis as the second largest investors in their projects. To strengthen the relationship with Emirati investors, Sobha Hartland is offering special prices. Additionally, they will have the advantage of getting high rental yields as a 20 per cent rent increase is expected on properties on the Dubai Canal. Sobha Group at present has three major projects

under construction, two of which are located at prime locations in Dubai and are expected to be completed by 2020. Also, the company has already launched 48 villas and 167 apartments in phase 1 which have already sold in a significant number. PNC Menon says, “We are pleased to extend this exclusive offer of DLD waiver and special prices for the one of the largest buyers in the UAE – Emiratis. “With the real estate investments from UAE nationals from across the GCC, Arabs, and foreigners to the tune of Dh22 billion in 2016, the Dubai property market continues to be the preferred investment destination for Emiratis. “We are upbeat about an imminent market upswing despite an overall slowdown in economy in the Middle East and lower oil price as investors and end users from more than 50 countries continue to record their vote of confidence in Dubai. “Dubai offers a range of exciting projects that caters to every need and fancy of the investors. Sobha Hartland, surrounded by 2.4 million square feet of greenery and set along the Dubai Water Canal, enjoys the unique advantage of prime location backed by over 40 years of expertise. “With Hartland Greens, Waterfront villas, and Hartland Estates – Quad Homes,

Sobha Group continues to set a benchmark in offering world-class bespoke living experience. Our array of options at Sobha Hartland boast of large, spacious and luxurio us homes with unmatched quality which are preferred by Emiratis.”

Sobha India profits up

Sobha Ltd has posted 10.30 per cent higher profit at ₹396 million for the third quarter (Q3) of FY 2016-17 on consolidated basis against ₹359 million recorded in the same period last year. The company’s income from operations is also higher by 23.21 per cent to ₹5.42 billion (₹440.3 crore). Earnings per share stood at ₹4.09 against ₹3.72 last year. The company in Q3 achieved new sales volume of 613,652 square feet, valued at ₹3.91 billion with an average realisation of ₹6,369 per square feet (Sobha’s share of sale value stood at ₹373 crore with an average realisation of ₹6,082 per square feet). Net operational cash flow stood at ₹134 million. JC Sharma, Vice-Chairman and Managing Director, said: “Despite the impact on the operational performance due to demonetisation, the company has shown a steady and consistent growth in its financial performance for the quarter.” g

THE KINGDOM’S PREMIER HOSPITALITY EVENT With 30 million tourists by 2025, new hotel developments, and the number of local and international restaurants on the rise; hoteliers, restaurateurs, and business owners need to get creative! Source international products from the biggest global brands, discover innovative and cost effective service solutions and network with industry peers at The Hotel Show Saudi Arabia.

100% HOSPITALITY FOR THE HOTEL, RESTAURANT, CAFÉ AND FOODSERVICE INDUSTRY

WHY VISIT? MEET hundreds of regional and international suppliers

SOURCE high quality products and solutions displayed by 100s of global brands

DISCOVER new technology and learn about the latest trends

NETWORK with over 4,000+ industry peers within the hospitality, F&B, leisure and entertainment industries and exchange best practice

ONLINE FOR

FREE ENTRY

thehotelshowsaudiarabia.com/register ORGANISED BY

Gulf Property 205x275mm.indd 1

CO-ORGANISED BY

HOST VENUE

SUPPORTED BY

KNOWLEDGE PARTNER

ASSOCIATION PARTNER

CO-LOCATED WITH

09/02/17 9:34 AM

PERFORMANCE

Gulf Property Exclusive

hile real estate developers continue to generate profits, large contractors continued to fight against losses as the market tightens, financial results of the major property developers and project contractors suggest. While all the major property developers – Emaar Properties, Nakheel, Damac Properties and Deyaar Development announced good net profits, it is the major contractors such as Arabtec and Drake and Scull International (DSI) that has been suffering from losses.

Developers gain, contractors lose

Emaar Properties

Emaar Properties recorded a 28 per cent jump in net profits to Dh5.23 billion (US$1.42 billion) in 2016, up from Dh4.08 billion (US$1.11 billion) recorded in 2015. The company’s revenues increased 14 per cent to Dh15.54 billion (US$4.23 billion) in 2016, up from Dh13.66 billion (US$3.71 billion) in 2015. Emaar’s international operations recorded revenue of Dh2.66 billion (US$726 million) in 2016 accounting for 17 per cent of the total Group revenue. With increase in revenue contribution from real estate, the performance of the malls and hospitality businesses, the fourth-quarter (October to December) 2016 net profit of Emaar increased by 56 per cent to Dh1.61 billion (US$439 million) compared to Q4 2015 net profit of Dh1.03 billion

Gulf Property

(US$281 million), and 41 per cent higher than the Q3 (July to September) 2016 net profit of Dh1.14 billion (US$312 million). Revenue for Q4 2016 was Dh4.43 billion (US$ 1.2 billion), 16 per cent higher than the Q4 2015 revenue of Dh3.81 billion (US$1.03 billion), and 15 per cent more than the Q3 2016 revenue of Dh3.84 billion (US$1.04 billion). Emaar has handed over around 41,500 residential units, 33,947 of them in Dubai. The developer has a land bank of 190 million square metres globally including a significant 25 mil-

lion square metres in the UAE. Mohamed Alabbar, Chairman of Emaar Properties, said that the impressive growth achieved by the company in 2016 underlines the success of the company’s long-term investments in creating sustained value for its stakeholders. “Emaar’s growth reflects the dynamism of the UAE, which has evolved as a global hub for business and leisure. As the nation sets new milestones in futuristic developments, Emaar will continue to invest in nextgeneration technology to de-

liver modern lifestyles that meet the lifestyle aspirations of our youth and future generations,” he said. Investments in premium real estate contributed to robust property sales in Dubai during 2016 at Dh14.4 billion (US$ 3.92 billion), which is 41 per cent higher than the FY 2015 sales value of Dh10.23 billion (US$ 2.79 billion). Sales across various international markets in 2016 were valued at Dh3.9 billion (US$ 1.1 billion). The Group now has a backlog of Dh42.97 billion (US$11.7 billion) to be recognised in the next few years, underlining

PERFORMANCE “As the nation sets new milestones in futuristic developments, Emaar will continue to invest in nextgeneration technology to deliver modern lifestyles that meet the lifestyle aspirations of our youth and future generations...”

– Mohammed Alabbar Chairman Emaar Properties

its strong financial fundamentals. Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, recorded a net profit of Dh1.87 billion (US$510 million) during 2016, an increase of 13 per cent over the 2015 net profit of Dh 1.65 billion (US$451 million). The 2016 revenue recorded a growth of 8 per cent to Dh3.22 billion (US$879 million) compared to 2015 revenue of Dh2.99 billion (US$815 million). The shopping malls assets of Emaar Malls together welcomed 125 million visitors

during 2016, similar to annual footfall during 2015. The Dubai Mall set a similar footfall level of 80 million visitors for third consecutive year despite ongoing expansion in and around the mall, reiterating its reputation as the world’s most-visited retail and lifestyle destination. With a gross leasable area of about 6 million sq ft in Dubai, Emaar Malls is on schedule with the expansion of The Dubai Mall’s Fashion Avenue by another 1 million square feet built-up area this year. Over 150 international brands will be added apart from some of Dubai’s first in-

ternational food, beverage and leisure choices. Additionally, The Dubai Mall will undertake the Boulevard, Fountain Views and Zabeel expansions adding new retail and leisure attractions. The hospitality and leisure, commercial leasing and entertainment business of Emaar recorded revenues of Dh2.74 billion (US$748 million) during the year ended 31 December 2016.

Nakheel

Master property developer Nakheel reported its highest annual net profits in the com-

pany’s history to Dh4.96 billion in 2016 – a 13 per cent increase on the 2015 net profit of Dh4.38 billion. The developer generated a net profit of Dh955 million for the last quarter of 2016 – up 22 per cent on the Dh781 million posted for the same period in 2015. “The record-breaking results indicate a stabilising, mature real estate sector in Dubai, and reflect the sound business and economic policies followed under the leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister Gulf Property

PERFORMANCE

of the UAE and Ruler of Dubai,” the company said in a statement. The 2016 results – which take Nakheel’s cumulative results since 2010 to Dh19.9 billion – follow improved year-on-year performances by Nakheel’s retail, hospitality and residential leasing businesses. In addition, development, the company’s core business, continued apace to ensure that new projects are completed, adding further strength to the balance sheet. During 2016, Nakheel handed over 1,426 land form and built form units, primarily in Palm Jumeirah, Jumeirah Park, Al Furjan and International City. The company’s retail revenue grew by more than 70 per cent in 2016 compared to 2015, proving that the strategy to create more company owned, cash-generating assets is paying off. In 2016, Nakheel Malls fur-

Gulf Property

ther expanded its operating retail portfolio by opening its phase one extension at Ibn Battuta Mall, neighbourhood Pavilions at International City and Al Furjan and the Club Vista Mare restaurant plaza on Palm Jumeirah. These added almost 400,000 sq ft of net leasable area to previously-existing retail assets, bringing the total operational leasable space to 4.3 million square feet by the year-end. A host of other retail sector projects, which will bring Nakheel’s total leasable space to 17 million square feet is under development. Revenue from Nakheel’s hospitality business jumped by 50 per cent in 2016 compared to 2015. During the year, Nakheel Hospitality commenced operations at hotels Dragon Mart (ibis Styles, operated by Accor) and Ibn Battuta Mall (operated as a Premier Inn), which have 623 rooms between them. The response to these properties has been over-

whelming, reflecting positively on the properties’ location and highlighting the demand in this sector. Both hotels are expected to further contribute to the company’s financial results during 2017 – their first full year of operation. Nakheel continues to expand its footprint in this key economic sector by bringing new hospitality concepts and international brands to Dubai in line with the Government’s vision for 2021, further strengthening the company’s overall asset base. Residential leasing also performed well in 2016, with occupancy rates remaining at almost 100 per cent. With more residential leasing expected to become operational in 2017, this sector will continue to provide a steady source of revenue for Nakheel. Nakheel Chairman Ali Rashid Lootah said: “[The year] 2016 was a momentous year in which we met

and completed all of our restructuring obligations by repaying all Dh4.3 billion of the trade creditors sukuk from our own resources – and recorded our highest ever net profit since Nakheel’s inception. “This historical milestone has been achieved by remaining focussed on implementing our business strategy. Under our ongoing commitment to maintaining the momentum in the local economy, Nakheel awarded construction contracts worth around Dh3 billion in 2016, and is set to award Dh10 billion worth this year. “The future is promising and we are confident that our strategy of having a diversified business will significantly benefit Nakheel and reinforce its position as one of the world’s leading real estate developers. We are currently working towards completing our healthy pipeline of projects and making them operational in the

PERFORMANCE

next few years, starting with The Pointe at Palm Jumeirah, one of our key hospitality and retail destinations, which is due to open this year. “A month into 2017, we have already begun handovers to customers on some of our completed projects, signed agreements with new hospitality partners, released the first of many construction tenders and announced an investment of Dh150 million in cycle tracks across our communities, while later this year we will launch sales of our new project on Palm Jumeirah, Palm 360.”

Aldar Properties

Aldar Properties reported net profit of Dh2.8 billion for 2016, up 8 per cent from Dh2.6 billion in 2015. The company’s sales value increased 17 per cent to Dh3.5

billion in 2016. Despite a softer operating environment, it achieved a Dh1.6 billion recurring revenue net operating income from asset management business. The company proposed an 11 fils per share dividend for 2016, up from 10 fils per share in 2015. The results come a week after credit rating agency Moody's upgraded Aldar Properties to Baa2 from Baa3 with a stable outlook. Concurrently, Moody's upgraded the rating of the $750 million senior unsecured Trust Certificates due in 2018 and issued by Sukuk Funding (No. 3) Limited. The outlook on all ratings is stable. The upgrade reflected Aldar's healthy credit metrics, which is expected to remain relatively resilient in the current weak operating environment in Abu Dhabi. As of the last 12 months ending on 30 Sept 2016, Aldar's gross debt to EBITDA as adjusted

by Moody's stood at 2.6x (net leverage of 0.7x) and EBITDA interest coverage reached 11.2x. Earnings in Q3 2016 were slightly boosted by the ca. Dh900 million one-off Al Raha Beach land sale to the government of Abu Dhabi. Nevertheless, Moody's base case forecast suggests that Aldar's credit metrics will remain strong over the coming 12-18 months with gross leverage staying below 3.0x and EBITDA interest coverage staying well above 8.0x. Aldar reported a 0.9 per cent decline in fourth quarter net attributable profit to Dh727.9 million ($198.2 million) in the three months to Dec. 31, 2016. Aldar Properties expects lower sales in 2017, its chief financial officer said. The company may also refinance its $750 million sukuk maturing in 2018. Aldar agreed with banks to refinance loans worth Dh1.8 billion with longer maturities.

Aldar has strong liquidity given (1) its unrestricted cash balances of about Dh5 billion as of end-September 2016; (2) stable cash flow generation through recurring net inflows, which Moody's anticipates to be in excess of Dh1.6 billion over the next 12 months; (3) Dh2.0 billion of committed revolving credit facility lines that are available until March 2021; and (4) Dh1.9 billion of government receivable that are to be received by 2018. The rating agency anticipates that capex related to the current property development pipeline will largely be funded through customer instalments and internal cash balances.

Deyaar Development

Deyaar Development reported a 67 per cent increase in 2016 revenues to Dh428.3 million, up from Dh257.1 milGulf Property

PERFORMANCE

lion], mainly due to construction progress in the developer’s The Atria and Mont Rose projects. This in turn led to a 55 per cent increase in 2016 operating profit to Dh218.9 million, compared to Dh141.4 million recorded in 2015. The increase in both revenues and operational profit in 2016 reflect healthy and sustainable growth of the company’s business. Saeed Al Qatami, CEO of Deyaar said: “The measures taken by Deyaar to generate efficiencies, optimise our business model and deliver great product to the market have continued to produce results in 2016. While there is no doubt the market faced challenges in 2016, real estate remained a standout asset class for investment. With key projects like The Atria and Mont Rose scheduled for delivery in 2017, the commencement of work on the Midtown master development, our ambitious plans for the hospitality sector with around 1,000 keys under development, the intention of launching new projects as well as our recently an-

Gulf Property

nounced plans for Dubai South, the Deyaar team is cautiously optimistic about prospects for the year ahead.” In 2016 Deyaar embarked on a series of international marketing initiatives in response to demand from Indian investors, including roadshows to New Delhi and Mumbai, and exhibiting at the Dubai Property Show in Mumbai. The developer also entered into strategic partnerships with Turkish real estate brand, Aşçıoğlu, to introduce Deyaar’s popular Midtown development to Turkish investors, and with leading global hotel group, Millennium and Copthorne, to operate three upcoming hospitality developments in Dubai. The developer began 2017 by announcing an MoU to establish a joint venture with Dubai South to develop a Mixed use project comprising residential property, retail and hospitality facilities. By 2017, Deyaar plans to deliver Mont Rose in Al Barsha South and The Atria in Business Bay.

Manazel Real Estate

Manazel Real Estate reported a 5.6 per cent increase in net profits to $56.22 million in 2016 compared to $53.09 million in 2015. The company reported $204 million revenues in 2016, compared to $201.48 million in 2015, driven by the construction progress and successful sales of the Al Reef 2 Project, the company said in a press statement. That project comprises 860 villas located in Samha, near Kizad and Khalifa Port in Abu Dhabi. The company’s assets increased from $1.14 billion in 2015 to $1.27 billion in 2016, an increase of 11.4 per cent. “Manazel Real Estate delivered a strong performance for 2016 driven by its focused business strategy to diversify its income resources while growing revenues and effectively managing costs,” said Manazel chairman Mohamed M. Al Qubaisi. The developer has recently

announced a new coastal project in Ghantoot. It has also started developing its Manazel Medical City integrated medical project in Abu Dhabi during 2017 which “will have a positive impact on the company’s future performance”, the statement added.

Arabtec Holding

Arabtec’s net loss attributable to the shareholders of the parent last year widened to Dh3.4 billion compared with Dh2.3 billion in 2015. The company said that the losses came as a result of "impairment charges on high risk items as well as recurring, non-recurring and operational expenses". The losses were above analysts’ expectations. According to Bloomberg, a poll of six analysts had forecast that full-year losses would come in at an average of Dh579 million. According to Bloomberg calculations, losses for the final quarter of last year widened to Dh3 billion,

Damac profit down 17.7%

amac Properties, reported a 17.77 per cent decline in net profits to Dh3.7 billion in 2016, down from Dh4.5 billion in 2015. During 2016, Damac recorded revenues of Dh7.16 billion, with gross profit margins at 56 per cent. Net profit for the reporting period stood at Dh3.7 billion, achieving net margins of 52 per cent. Total assets increased 5 per cent to Dh24.63 billion at year end 2016 compared to Dh23.45 billion in 2015. As of 31 December 2016, cash and bank balances stood at Dh8.32 billion; development properties grew 12 per cent to Dh10.25 billion over the year and total equity grew 28 per cent to Dh12.62 billion from Dh9.83 billion in 2015, net of dividend. Cash dividend of Dh0.25 per share amounting to Dh 1,512.5 million is proposed by the Company’s Board of Directors. Earnings Per Share (EPS) for 2016

dwarfing losses for the same period a year earlier of Dh403.7 million. The analysts forecast that losses for the final quarter of 2016 would stand at a median figure of Dh118 million.

Drake & Scull

Drake and Scull International (DSI), a major Dubai-based contractor, reported a net loss of Dh787 million in 2016, down from Dh939 million in 2015, a company statement said. The company reported Dh3.2 billion revenue for 2016, compared to Dh4.2 bil-

amounted to Dh0.61 per share. Damac completed over 1,600 units in 2016 in Damac Hills development. Total deliveries for 2016 were recorded at over 2,400 units. During 2016, booked sales reached Dh7.05 billion. In the fourth quarter of 2016, the company recorded Dh1.71 billion. Hussain Sajwani, Chairman of Damac, said, “The Dubai real estate market in 2016 had stabilised over 2015, with no major fluctuations in prices. There is demand for quality real estate but with the challenging market conditions we are operating in, what has changed is customers are seeking better value. Our medium to long term outlook remains positive, and we are wellpositioned to accommodate and navigate these conditions. “During the year, we launched a series of innovative products in our golf community Akoya Oxygen that were priced to attract a wider audience, including first-time buyers and millennials, looking for properties in premium locations at an attainable price and with favourable payment terms. lion reported for 2015. In the last quarter of the fiscal year 2016, the company undertook most of the revenue reversals and profit adjustments as negotiations with key distressed clients on several projects drew to closure. “Against the backdrop of the significant liquidity challenges in the regional construction sector, the groups’ results for the fiscal year 2016 were impacted by major revenue reversals, profit adjustments, cost overruns, and investment impairments, emanating primarily from several disputed legacy

These investors were seeking to either diversify their current investment portfolio or were end-users with lifestyle aspirations. “Due to the efforts of our visionary leadership, Dubai is consistently outperforming other regional as well as international markets. With a heavy emphasis on building world-class infrastructure that will serve the future needs of the emirate, and attracting investors and businesses to a hub that is easy to do business in, Dubai continues to be an attractive proposition for visitors and residents living and working in the city.” In the forurth quarter of 2016, Damac Properties’ momentum on deliveries was significantly amplified, delivering more than 1,100 units in the quarter alone, and bringing the total units delivered to more than 2,400 for the year. In addition to more than 600 hospitality units delivered in Damac Maison Royale The Distinction and Damac Maison Bay’s Edge, 2016 was the year of the first deliveries of villas and apartments in golf community Damac Hills (Akoya previously). g projects in the construction business in Saudi Arabia,” the company said in a statement. “The revenue and gross profit adjustments reflected in the fiscal year are against uncertified variation orders and claims, disputed extensions of time claims, and accrued uncertified work across key projects primarily in the civil sector.” DSI’s fourth quarter 2016 revenue was Dh540 million and the net loss for the period was Dh490 million. DSI’s ongoing order backlog reached Dh8.1 billion as of December, 31st 2016 and

PERFORMANCE At A Glance

Dh5.23 billion net profits recorded by Emaar Properties in 2016

Dh4.96 billion net profits recorded by Nakheel in 2016

Dh3.7 billion

net profits recorded by Damac Properties in 2016

$56.2 million

net profits recorded by Manazel Real Estate in 2016

Dh3.4 billion

net loss recorded by Arabtec Construction in 2016

the total value of project awards secured in 2016 stood at Dh815 million. The UAE and the Engineering business accounted for 23 per cent and 72 per cent of the backlog, respectively, reflecting the company’s strategic and ongoing focus on its home market and core engineering business. As part of the turnaround and capital restructuring plan, DSI secured in Q1 2017 a binding offer from a UAE strategic investor Tabarak Investment LLC to inject new capital in the company for a total amount of Dh500 million. The company is also concurrently seeking to engage with the Emirates Securities and Commodities Authority (SCA) to obtain approval for a 50 per cent capital reduction. g Gulf Property

Sweet Homes launches its first serviced apartments

SPOTLIGHT Damac Maison wins TripAdvisor certificate

hree hotels by Damac Properties’ hospitality arm, Damac Maison Hotels and Resorts, including Damac Maison The Vogue, Damac Maison Cour Jardin and Damac Maison Canal Views have been awarded a Certificate of Excellence 2016 by TripAdvisor, the travel planning and booking site. The Certificate of Excellence by TripAdvisor recognises and honours accommodations, restaurants and attractions that have consistently achieved positive traveller reviews over the past year. g

KEF wins Gulf Sustainability Award

EF Holdings, the UAE-based multinational diversified group, has recently won Gulf Sustainability and CSR Award for Transformative Learning and Education Programme. KEF Holdings has won the award for the best learning and education programme, for their interventions through the Faizal and Shabana Foundation. The accolade recognised the company’s contribution to enhancing the quality of public education in India. g

Gulf Property

Nakheel adds Dh850m project at Ibn Battuta

akheel has begun work on a new 55storey residential tower, 16-screen cinema complex, multi-storey car park and retail expansion – with a combined total project value of Dh850 million – at Ibn Battuta Mall in Dubai. Nakheel has awarded a contract worth nearly Dh23 million to Dubaibased National Gulf Constructions LLC for enabling works at the site, located on the southern side of the world-famous mall, adjacent to the Gardens community. The new residential, retail and entertainment development – the latest in Nakheel’s ongoing expansion at Ibn Battuta Mall – includes: A 55floor residential tower with 279 apartments, pool deck, landscaped grounds, retail space and multi-storey car park; A 16-screen dine-in cinema complex, with its own multi-storey car park with almost 1,400 spaces, directly linked to the mall; A retail expansion with 53,000 square feet of shop space and over 600 new parking spaces With a built-up area of 675,000 square feet, Ibn Battuta Residences 2 will soar 55 floors above Ibn Battuta Mall, dominating the Jebel Ali skyline and creating a new landmark for the area. With 279 apartments, the tower will complement Ibn Battuta Residences, a 48floor twin-building apartment complex, announced last year. The three towers have 810 apartments between them. Directly connected to the mall and its 400 shops, restaurants and entertainment facilities, Ibn Battuta Residences 2 will have 108

Nakheel adds another tower to Ibn Battuta Mall

two-bedroom and 171 threebedroom apartments, available for lease, plus ground floor retail facilities. A health and wellness centre – featuring swimming pools for adults and children, fitness club and café – will occupy the top-level of a fourstorey parking podium housing 515 spaces. The complex will also have a 32,000 square feet landscaped park with a 200 metre jogging track, children’s play area and shaded seating. Ibn Battuta’s new, 16-screen cinema and dining complex will cover more than 700,000 square feet including 114,000 square feet of leasable space. Built over four levels, the new facility will boast a multi-storey car park with nearly 1,400 parking bays as well as a

range of casual dining restaurants and cafes. Construction proposals are due for assessment soon. The latest expansion programme at Ibn Battuta Mall includes 53,000 square feet of shop space and 625 parking spaces across three levels. The new complex will be linked to Ibn Battuta Residences 2. With a built-up area of 260,000 square feet, the extension forms part of Ibn Battuta’s existing India Court, and will feature nearly 30 new shops. The new projects announced recently are part of Nakheel’s phased expansion at Ibn Battuta Mall that is transforming the area into a sprawling retail, residential and leisure hub spanning an area of more than seven million square feet. Phase one, comprising a 300,000 square feet retail extension, a 210 metre link to the Dubai Metro and a 372 room hotel, opened last year. Subsequent phases include a one million square feet mall featuring a retractable roof for year-round shopping and dining, and a second hotel. Together, these span more than 15,000 hectares and currently provide homes for over 270,000 people. Nakheel has 21,000 residential units under construction. It’s current and future retail project portfolio covers nearly 17 million square feet of leasable space. Developments include Ibn Battuta Mall, Dragon Mart 1 and 2, Golden Mile Galleria, Nakheel Mall, The Pointe, Deira Mall, Deira Islands Night Souk, Warsan Souk, Al Khail Avenue, The Circle Mall and Nad Al Sheba Mall. g

Equitativa forms new REIT with Al Hamra Real Estate

quitativa Limited recently launched the Residential REIT Limited, the first Sharia compliant residential Real Estate Investment Trust in the UAE. This is the second REIT in the UAE after Emirates REIT, launched and managed by the Equitativa Group. The Residential REIT’s founding shareholders, Al Hamra Real Estate Development and National Bonds Corporation, contributed a portfolio of high quality income producing residential properties. Al Hamra contributed 371 residential units consisting of a mix of apartments, duplexes, townhouses and villas located in Al Hamra Village, Ras Al Khaimah. The portfolio comprises of 472,250 square feet of net leasable area in one of the most attractive communities in the Emirate. It has a strong mix of both private tenants and corporate tenants with varying tenures. National Bonds contributed a building with 112 units made up of studio and one-

bedroom apartments, collectively known as ‘Barton House’ located in Dubai’s Motor City. These units comprise a total of 86,239 square feet of net leasable area. The contributed properties have 95 per cent occupancy and a total value of Dh418 million. An additional property valued at Dh99 million has already been secured, bringing the total portfolio value to Dh517 million. An individual cash investor also invested in the Residential REIT. The Residential REIT distributes at least 80 per cent of its net income to shareholders. Equitativa expects to

raise further funds allowing the REIT to buildup a large portfolio in order to prepare for an IPO. The Residential REIT was launched after the grant of an exclusive Emiri decree in October 2016 which permits current and future REITs and other collective funds managed by Equitativa to invest in Ras Al Khaimah onshore real estate. This follows a similar Ruler’s decree granted to Emirates REIT in 2013 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, for onshore real estate in Dubai. g

ubai-based Alman International Investment and a Kuwait company created a joint venture to invest in a riverbank resort – Alman Waterfront Resort at Miskovci, Bosnia and Herzegovina. The resort will cover a land parcel of 40 acres, offering 420 luxurious apartments, 80 residences, restaurants, a beach club, an spa and fitness center, and a water

park. Such investements are of high importance for this region of Bosnia and Herzegovina and will enhance the location value. The quality and scope of this project will strenghten Derventa's position as an investment destination and attract investors from around the world. Currently, the project is in the early planning stages. With the end of 2017, Almman International Invest-

ments Ltd. in cooperation with Kuwaiti investors, will complete the purchase of Ukrina riverfront properties in the muncipality of Miskovci. At full build-out, Alman Waterfront Resort will generate an estimated $200 million in economic impact annually for the city of Derventa and state of Republika Srpska, and be the region’s largest employer, supporting 2,000 permanent

UAE investor to build resort in Bosnia

employment. g

SPOTLIGHT

Damac renames Akoya

amac Properties has recently rebranded its Akoya project to Damac Hills. It has achieved a significant number of milestones achieved at its premiere golf master planned community, Damac Hills, featuring Trump International Golf Club Dubai at its centre. Previously known as Akoya by Damac and sprawling over 42 million square feet, the muchawaited master development features Dubai’s latest addition to the golfing scene – an international golf course set to join the league of the most premium golf courses in the world. The community, with handover of units in several clusters already commenced, offers a luxury living experience. “The launch of Damac Hills marks our evolution into becoming a successful master developer. The complexity and size of such a large-scale project is testament to our ability to deliver from start to finish a fully-integrated community and for this reason we are pleased to put our name to it,” Niall McLoughlin, Damac spokesperson, said. Damac Hills consisting of over 4,000 villas and 7,500 condominiums in addition to hospitality, luxury shopping, spa and wellness facilities and leisure, along with food and beverage components. g Gulf Property

R sC Runs Concur nc rentl e ently with: w :

27 2 7thth - 229 9thh March March 20 017 Halls 017 Ha ls 11,, 22, 3 & 4 Dub Dubai baa Wo World o ld d Trade rad ade C Cen entre, n ree,, U nt Un United niteedd Ar Arab raab b Emirates Em Em mirates

Key Key ey rre reasons eaassooonnnss to to eexplore xpl p oorree opportunities opp ppoorrttuunittiieess at at the th hee

‘Amusement Amu m sementt O Operator pe atoor & Fra Franchise ranchisse S Showcase howcase wcccaaase w se 22017 017’ • Glob Global eentertain G i ment play ayer e s are llooking ook ng g at the he reg eg ion on with mas assive expansion on plans. ns • Loc L cal play yerrs aim im ing in to replicate the h them e ep epark and d enter e tain men nt co c pts in concep n other e glob o al marke rkets. s • Br B eed e ding ng g gro und nd fo o investors,, brand or n ow ow ner e s, s, licens i e sors, mall ow w nerrs, real estate developer elope s and el nd othe her er st stakeeho holder lde s. ld s • Ca C pitalise o on n the h reach ch of D EA L Expo, Expo,, the he large gest amu musem emen ent and nd le isu re in indu d str s ry tr t ade de show h w in thee Midd M ddle East Eas & Afr Afric ica. a • Wi Window d w to eeduc ducate y yo u rsel e f on n thee im m por po tant ru r les and nd regu egulati t ons ons of the he loc local marke rrk kets. s.

s o uus Join

20 0 - 21 March 2017 'XEDL 8$( '

7KH OHDGLQJ SODWIRUP IRU WKH 8$(ÌµV PXOWL VHFWRU UHWURÍ¤W SURJUDPPH DQG WKH (PLUDWH ZLGH DGRSWLRQ RI HQHUJ\ HIÍ¤ IÍ¤FLHQW WHFKQRORJLHV O OFFICI ALL LY SUPPORTED BY:

5 EASY WAYS TO REGIST TER

Special offfer for

+971 4 361 4001 +971 4 361 4554

readers

ZZZ UHWURÍ¤WWHFKXDH FRP RSSRUWXQLWLHV#DFP HYHQWV FRP $GYDQFHG &RQIHUHQFHV 0HHWLQJV )= //& 3 2 %R[ 8$(

$662&,$7( 63216256 GOLD SPONSOR

EMPOWERED TO LEA AD THE FUTURE

1(7:25.,1* 63216256

/$1<$5' 6321625

)0 3$571(5

.12:/('*( 3$571(5

6833257,1* 25*$1,6$7,2 21

0(',$ 3$571(5

ZZZ UHWURÍ¤WWHFKXDH FRP Advanced ed Conf nffer erences and Meetings e gs FZ-LL FZ C 7 , ) , ( RSSRUWXQLWLHV#DFP HYHQWV FRP

25*$1,6(' %<

0(1$ *UHHQ %XLOGLQJ

dŚĞ ŶŶƵĂů D E 'ƌĞĞŶ ƵŝůĚŝŶŐ ǁĂƌĚƐ ŝĚĞŶƟĨǇ ĂŶĚ ƌĞĐŽŐŶŝǌĞ ŽƌŐĂŶŝǌĂƟŽŶƐ ĨŽƌ ŝŶŶŽǀĂƟǀĞ ĂŶĚ ŽƵƚƐƚĂŶĚŝŶŐ ƐƵƐƚĂŝŶĂďůĞ ďƵŝůĚŝŶŐ ƉƌŝŶĐŝƉůĞƐ ĂŶĚ ƉƌĂĐƟĐĞƐ ŝŶ ƚŚĞ DŝĚĚůĞ ĂƐƚ ĂŶĚ EŽƌƚŚ ĨƌŝĐĂ ƌĞŐŝŽŶ 4VCNJ T T J PO %FBEM J OF ' FCS VB S Z NJ EOJ HIU 6"& U J NF

8J OOFS T XJ M M CF B OOPVOD FE B U U IF (B M B %J OOFS B OE "XB S ET $FS FNPOZ U B L J OH QM B D F PO .BZ B U U IF .VS PPK )PU FM %VCB J

1S PG FT T J POB M "XB S ET $B U FHPS J FT

$POW FOU J POB M $POT U S VD U J PO .B U FS J B M T 8B U FS .B OB HFNFOU /&8 t

dĞƌŵƐ Θ ŽŶĚŝƟŽŶƐ ĂŶĚ ƉƉůŝĐĂƟŽŶ &Žƌŵ ĐĂŶ ďĞ ĨŽƵŶĚ ŚĞƌĞ͗ ĞŵŝƌĂƚĞƐŐďĐ͘ŽƌŐͬĂǁĂƌĚƐͬϮϬϭϳĂǁĂƌĚƐ Žƌ ĂǁĂƌĚƐΛĞŵŝƌĂƚĞƐŐďĐ͘ŽƌŐ͘ &Žƌ ^ƉŽŶƐŽƌƐŚŝƉ ŽƉƉŽƌƚƵŶŝƟĞƐ ĐŽŶƚĂĐƚ ĞŶŐĂŐĞŵĞŶƚΛĞŵŝƌĂƚĞƐŐďĐ͘ŽƌŐ ͬнϵϳϭ;ϬͿϰ ϯϰϲ ϴϮϰϰ͘ * O 1 B S U OF S T IJ Q XJ U I

4 VQQPS U F E CZ

"VEJ U F E CZ

All the h good things liffe h has to oﬀer Introducing wasl quartzz in Umm Hurairr As Umm Hurair continues its dynamic transfformation, the vibrant community gets its latest addition in a series of contemporary projjects, the latest being wasl quartz (R1027), with its modern upscale amenities in the heart of Dubai. It’s the perfe ect place to live.

Ramee Royal

3 B . St

D79

St . 28 th

St.

To lease, call 800wasl (9275), email lease@wasl.ae or visit waslquartz.wasl.ae

RTA Control Room Dubai Creek Tunnel

RERA No. 4428

Hu ra ir

D79

Um m

Size (sq.fft.) t.) 855 – 1,152 1,143 – 1,209 1,236 – 1,552 1,329 – 1,620 1,846 – 2,312

Samsung Showroom

28 th

St.

. St

Unit types 1 bedroom apartment 1 bedroom apartment with maid’s room 2 bedroom apartment 2 bedroom apartment with maid’s room 3 bedroom apartment with maid’s room

nge Koyla Loun e & Caffe

th 30

Pro oject ffeatures: eatures: • High-end ﬁnishing • Retail units on the ground ﬂoor • Male/female e gyms & pool • Covered parking

GULF PROPERTY

FEBRUARY 2017