Gulf Property January 2015 by Gulf Property

Gulf Property WE

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TH E

Em erg ing str on ge r

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

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7TH re Y

VOL. 7, NO. 4 JANUARY 2015

EAR !

ce ss ion

Indian Realty snapshot

Is your landlord increasing rent?

Find out from Realty Check

how much he is entitled to hike

EXECUTIVE COLUMNS Zainab Mohammed wasl Gurjit Singh Aldar Properties Yousuf Kazim Jumeirah Golf Estates Talal Al Gaddah MAG Property Mahendra Pratap Singh SPF Realty Mahdi Amjad Omniyat Group Andrew Elias Kele Contracting Niall Mclaughlin Damac Properties Natasha Gangaramani Al Fara’a Properties EXCLUSIVE INTERVIEWS Eng. Hussain Nasser Lootah Dubai Municipality Hesham Al Qassim wasl Khalaf Al Habtoor Al Habtoor Group Abdallah Massaad RAK Ceramics Karim Derbas Palma Holdings

wasl’s first freehold project sold out!

A Smart City

Dubai Municipality is transforming Dubai into

[PRESENT]

Fully furnished luxury freehold apartments,

100% ready.

[2015]

[2016]

wasl brings you Hyatt Regency Creek Heights Residences, fully furnished luxury residential units. Ready now | Services provided by the Hyatt Regency Dubai Creek Heights Hotel | Studio, 1, 2, 3-bedroom suites & luxury lofts | Fully furnished opulent interiors | Floor to ceiling views of Dubai Creek & Creek Park | 10 minutes from Downtown Dubai For sales call 800wasl (9275) or email sales@wasl.ae Hyatt. You’re more than welcome.

www.creekheights.com * Artist’s Impression * wasl is responsible for the development and sale of Hyatt Regency Creek Heights Residences.The residences are not developed, sold, or managed by Hyatt International Corporation or its afﬁliates, including Hyatt International – South West Asia, Limited (collectively, “Hyatt”). Hyatt has granted the developer the right to offer and sell the residences under the “Hyatt Regency” trade name and mark under a trademark license. The Hyatt brand name and trademarks are not part of the sale of the residences. Hyatt has no responsibility for the offering, marketing, sale, or solicitation of any of the residences.

800-773 millenniumsquare.ae

Meydan

LAUNCHED 2013 -2Q

PROJECT SOLD 2013 -3Q CONSTRUCTION ON TRACK

MILLENNIUM SQUARE

WHERE PERFECTION HAS A VIEW

• 4 & 5 Bedroom Ultra luxurious Semi detached villas with Downtown Dubai skyline views • Built up area 3479 sqft

Luxury living, delivered.

LAUNCHED 2014 -1Q

PROJECT SOLD 2014 -2Q CONSTRUCTION STARTED

2014 -4Q

LAUNCHING NOW

MEET US AT THE SITE 800-773 for location details Between 9:30 am to 6:30 pm Saturday to Thursday

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EDITORIAL

A tough year ahead....

With a slowdown in prices, Dubai’s real estate market is heading for another tough year. However, this time it won’t be a drastic situation, simply due to the fact that the market has matured and price movement will be broadly in line with the macro-economic fundamentals.

s we embark on a new year amidst a slowdown, outlook for the UAE’s real estate market remains mixed. As the market matures, credible developers are expected to dominate in the selling and development activities, while others might have to struggle a bit. Major property developers are continuing to build upon their success of 2013-14 and it appears that end-users would continue to rally behind them.

However, as the market matures further, developers with creative payment solutions and attractive mortgage packages would do well. As prices stabilise, more and more tenants would look at buying properties.If they find the monthly payment installments are close to the rental value, then many tenants would opt for outright purchase and move to the readymade freehold homes, with help from the mortgage providers.

For most tenants, who have been receiving a higher rental notice at the time of renewal of their rent contracts, kindly read our article on the rent calculator that could help you calculate how much your landlord could increase. While some landlords might take advantage of the ignorance of the tenants, most are abiding by the rental index and how much it allows them to increase. For every tenant in Dubai, an understanding of the rent calculator is very important. This tool could also be helpful if implemented in other emirates and could work as a reference point for all.

In this issue, we have focussed on Dubai’s journey from a trading outpost to becoming one of the world’s most important trade, tourism and financial hub and its future journey towards becoming a smart city. Engineer Hussain Nasser Lootah, Director General of Dubai Municipality gives a wonderful low-down of the progress, exclusively for the readers of Gulf Property.

In this issue of Gulf Property, we have also enhanced coverage on the Indian property market as we see a growing interest amongst the Non-Resident Indians (NRIs) to buy properties back home. They also stand to gain from the falling value of the Indian currency. A good number of Indian developers are strengthening their presence in the UAE, something worth watching out for.

Before signing off, I would like to wish all our dear readers and advertisers a very happy and prosperous new year!

– T. Akhtar

COVERSTORY

FOCUS

Rent Calculator A year of slower growth

EXECUTIVEOPINION

18 28

Zainab Mohammed/Wasl 30 Yousuf Kazim/Jumeirah Golf Estates 31 Andrew Elias/Kele 32 Gurjit Singh/Aldar 33 Natasha Gangaramani/Al Fara’a 34 Mahendra Pratap Singh/SPF Realty 35 Niall McLaughlin/Damac 36 Mahdi Amjad/Omniyat 36 Talal Al Gaddah/MAG 37

CONTENTS

INDIANREALTY

EXCLUSIVEFEATURE

RAK Ceramics allocates Dhs250mn capex in 2014 52 Al Hamra’s projects boosting RAK market 58 Property Rights will help both tenant and landlord 61 Solidere International: The force behind Al Zorah 62

INTERVIEW

TILALCITY NEWSUPDATE

Omniyat aims to double value by 2020 72 Pullman Dubai gets a Dhs100mn makeover 76

GULF PROPERTY

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

EDITORIAL

Editor T. Akhtar editor@panasian1.com Senior Reporter Paromita Dey p.dey@panasian1.com Senior Reporter/Sub-Editor Indrajit Sen i.sen@panasian1.com

SALES AND DISTRIBUTION

Carol Fernandes c.fernandes@panasian1.com

PUBLISHER

T. Akhtar Pan Asian Media MFZ LLC

LICENCE

Licenced by RAK Media City, authorised by the National Media Council. Gulf Property is a publication of Pan Asian Media MFZ-LLC EDITORIAL AND COMMERCIAL ADDRESS Pan Asian Media MFZ-LLC P.O. Box No.: 39865. Dubai, UAE Tel : (9714) 2281021 Fax : (9714) 2281051 E-mail gulfproperty@ymail.com editor@panasian1.com Web www.gulfpropertyme.com

CIRCULATION 20,000 copies

Gulf Property 9

REALTYBYTES

Almost 40% of plots at Tilal City sold within first two weeks

ilal Properties, the developer behind Tilal City – the firstof-its-kind mixed use community in Sharjah – recently announced its sales campaign had ‘exceeded all commercial expectations’, as nearly 40% of available land plots have been sold within the first two weeks since the project’s launch. Non-Arab expats can purchase land plots on a 100-year leasehold basis within the Dhs2 billion scheme, which will eventually become the first mixed-use community of its kind in the Emirate. Freehold land plots are available for GCC and other Arab nationals. “This is the first time that UAE residents have been able to buy land and build property in Sharjah, opening up the real estate market to an entirely new group of investors and driving forward further developments in the Emirate,” said Khalifa Al Shaibani, Director General of Tilal Properties. Tilal City comprises over 1800 land plots and will occupy an area of 25 million square feet, of which 50% is for sale and 50% is allocated for public facilities, roads and parks. Split into five zones, it will provide high-quality, affordable housing for 55,000 – 65,000 residents in apartments, villas and townhouses. g

Gulf Property

ADFG acquires UK’s New Scotland Yard building

The Abu Dhabi Financial Group (ADFG), an Abu Dhabi-headquartered, multibillion dollar alternative investment firm, recently announced that it has acquired the New Scotland Yard building, home to the London Metropolitan Police since the 1960s, from the Mayor’s Office for Policing And Crime (MOPAC) for £370 million (Dhs2.1 billion). The 600,000 square feet site, located in prime Central London, will be redeveloped into a world-class multi-use development.

Jassim Alseddiqi, CEO of Abu Dhabi Financial Group, said: “The New Scotland Yard site will be one of the most important redevelopment projects undertaken in Central London this decade, replacing a world famous headquarters with a world class development. With the bid process now complete, we look forward to creating an exceptional new landmark for London.” The landmark deal, for which ADFG was the preferred bidder over ten other competitors, further cements

ADFG’s reputation as a leading investor in London’s flourishing real estate market. In November 2014, ADFG announced the completion of a £310 million (Dhs1.8 billion) financing deal for the redevelopment of 1 Palace Street, situated in prime Central London adjacent to Buckingham Palace. With an expected completion date of 2017, this development will comprise of 72 luxury apartments, a prominent restaurant and lavish health and fitness facilities within its 271,051 square feet area. g

REALTYBYTES

Dubai Properties caters to budget housing needs through Remraam

n response to the recent market demand for affordable housing, real estate developer, Dubai Properties (DP) recently awarded a Dhs541 million contract to Engineering Contracting Co. LLC for an 18building expansion of its Remraam community in DUBAILAND. According to Colliers International’s latest report, almost 50% of the households in Dubai earn between Dhs9,000-15,000 monthly, creating a gap in the affordable housing market. Dubai Properties aims to bridge that. “Our aim at DP is to develop projects that meet the needs of the market. With the current increased demand for residential properties in the mid-income sector, and giving Remraam’s popularity in this particular segment, these additional building units are designed to respond to the needs of the population,” Mohammed Al Habbai, Chief

Officer for Urban Planning and Infrastructure at Dubai Properties Group, said. “The signing of this contract is a new milestone in the development of Remraam, as it will allow us to offer even more convenient, reasonably priced units for Dubai residents and investors in one of the city’s most strategic locations adjacent to the Expo 2020 site,” Habbai said. Habbai also revealed that further Remraam units will be launched to the market overtime to respond to the growing demand for family homes and investment. The Remraam project has received strong demand from both investors and end users, resulting in the sell-out of 200 apartments in May and the launch of further units in June, 2014. Consisting of units ranging from studios to 3-bedroom flats, Remraam represents a striking investment opportunity for investors and families looking for spacious, fairly

DP, Hilton sign deal to open new hotel

ubai Properties (DP) and Hilton Worldwide recently announced the signing of a management agreement to build a DoubleTree by Hilton hotel at the popular mixeduse Bay Square development in Dubai’s Business Bay district. The hotel will join a fast growing portfolio of DoubleTree hotels already welcoming guests in Dubai and Ras Al Khaimah and is expected to open in early 2017.

priced and conveniently located flats. Remraam offers ample facilities including a supermarket, swimming pools, basketball and tennis courts,

The 238-guestroom DoubleTree by Hilton Dubai Business Bay will cater to the increasing number of business and leisure travellers visiting Business Bay, whilst providing further F&B, retail and leisure facilities to professionals and residents. The new build hotel will be located within close proximity to major corporate offices, as well as the commercial and entertainment areas of the Burj Khalifa and Dubai Mall. The hotel will include upscale amenities and guest services such as a health club, swimming pool, fully equipped business centre and four multi-function boardrooms. g BBQs, lawns and walkways. The community is located in DUBAILAND, just off the Emirates Road between the Jebel Ali Free Zone and Al Maktoum International Airport. g Gulf Property

REALTYBYTES

Aldar rating raised to ‘investment grade’ by S&P

ldar Properties PJSC’s (‘Aldar’ or the ‘Company’ ADX: ALDAR) credit rating has been upgraded to investment grade by Standard & Poor's Ratings Services (‘S&P’), citing its improved financial profile through the reduction of its financial leverage and development risk, the increase in recurring rental income following the opening of Yas Mall and other investment properties. The expectation that the company will continue to benefit from continued property demand in Abu Dhabi. This is the second upgrade to investment grade for Aldar, following the upgrade by Moody’s to Baa3 with ‘stable’ outlook on November 26, 2014. The ratings agency also upgraded Aldar’s US$750 million Trust Certificates due in 2018 to investment grade, raising the rating from BB+ to BBB-. Mohammed Al Mubarak, CEO of Aldar Properties, said, “I am very pleased that once again Aldar’s financial strength has been acknowledged by the market. This upgrade from S&P reinforces Aldar’s strategy and the benefits that deleveraging and recurring revenue growth can bring to our business. It is important that we act quickly and efficiently to deliver product to market and our financial strength is an important element of our growth story.” g

Gulf Property

Green Valley launches Dhs1bn Al Dana Island

reen Valley Real Estate, one of the leading real estate companies in the region, is delighted to announce the launch of its 1.7 million square feet newest landmark project Al Dana Island. The project worth Dhs1 billion, which will be located in Dibba, Fujairah, beside Al Aqqa, Oman, will be one of the largest manmade islands in the UAE. The development will feature a range of luxury villas set in a landscaped environment, which will compliment the international-standard yacht club and a 5-star hotel also planned. A total of 376 luxury 3- and 4-bedroom villas, each with a floor area of approximately 1 million square feet are planned within the confines of

this luxury development, all have the benefit of a view of the Arabian Sea as well as the mountains of Oman. Each villa will have a garden which will extend to the sea, offering residents their own area of private shoreline. Additional features which owners may opt for include a private pool and a berth in the marina. The villas will be set in landscaped gardens which will feature public parks with seating areas, play areas for children, a range of restaurants and cafes, as well as jogging tracks and other sporting facilities. Wiaam Mahmoud Rabah, Chairman of Green Valley International Real Estate, said, “Al Dana Island will be a completely unique development, benefiting from the beauty of

the natural environment of the region, it’s the first of its kind to combine a view of both the mountains and the sea at the same time and, as such, will offer residents something which cannot be found anywhere else.” Three-bedroom luxury villas start at only Dhs1.9 million which offers value for money for accommodation of this standard. Down payments, which are now being invited, start at 20% of the cost price. The remaining 80% will be paid in 48 monthly installments, commencing after the first payment. Al Dana Island is fully-insured, cover includes all the villas and public facilities against natural disasters, and extends to individual cover for incidents.g

REALTYBYTES

Construction is on in full swing at the Dubai Parks and Resort site

Construction of DPR makes headway

ubai Parks and Resorts (DPR), a subsidiary of Meraas Holding, has announced that preliminary infrastructure work across its multithemed leisure and entertainment destination has achieved 35% completion. Over 2500 workers are employed at the on the site near Jebel Ali. In parallel, civil works have also commenced and more than 50% of the construction contracts have been procured. g

Al Thuriah delivers Sahara Tower 3

l Thuriah, one of the leading real estate companies and property developers in Sharjah, announced the handing over of 70% of the Sahara 3 project to buyers and investors. Sahara Tower 3 is part of Sahara Complex, consisting of a ground floor and five floors of parking and twenty residential floors, in addition to the helicopter landing pad on the roof and pool hall located on the ground floor. Sahara Tower 3 is located in Al Nahda, Sharjah, near the Sahara Shopping Centre, which is on the border between Sharjah and Dubai. It is conveniently located to offer easy access to main roads and connect with many Emirates of the country. Raymond Khouzami, CEO of Al Thuriah said, "Our deliv-

ery before the estimated date of completion are promises we made and featured as our motto specifically to address the trust issues between the buyer and the owner of the project. It has become customary in the world of real estate that companies

delivering on or before the project deadline are deemed to be trustworthy and reputed, as the industry is plagued with delays, sometimes between two and three years, and non-fulfillment of promises. We are always committed to deliver projects

not only on time, but also ahead of schedule. in order to create a new reality that covers credibility and good work ethics. We prepare for all obstacles that we may face, which is partly the reason for our success and fulfillment of our promises.â&#x20AC;? g Gulf Property

REALTYBYTES

Manchester attracts UAE’s real estate investors

igher demand for quality housing and new buildings is rapidly driving Manchester’s profile as an attractive investment destination among international property investors. With buyers eyeing the limited number of housing, the city is witnessing a real estate boom, according to HMG Properties, a leading international player, having presence in the UAE and dealing in international properties in the UK, US and Spain. Already, investors from GCC countries are lining up to snap up property options in Manchester, it added. Raed Bourjass, CEO of HMG Properties, said, “Over the past decades, Manchester has emerged as the second-most important city in the UK in terms of economic importance and financial activities, after London. A growing number of British expats living in the GCC and international investors are keen to add Manchester to their investment portfolio.” HMG Properties recently launched ’Commuters House’ in Manchester, under the slogan ‘The Perfect Deal to Rent and Invest’, offering UK and international investors the opportunity to invest in this prime residential property. The new project consists of 196 luxury apartments with a mix of 1, 2 and 3 bedroom units. g

Gulf Property

Nakheel begins leasing spaces at The Circle Mall

akheel has began leasing 400,000 square feet of shopping, dining and entertainment space at The Circle Mall, a new retail and leisure destination at its Jumeirah Village Circle (JVC) master community in Dubai. Covering a total area of 1

million square feet, The Circle Mall will have 200 shops, an anchor supermarket, two departmental stores, a multiscreen cinema and a variety of dining outlets including a food court. Strategically located between Sheikh Mohammed Bin Zayed Road, Al Khail Road and

Hessa Street, The Circle Mall will thousands of people living in Jumeirah Village and surrounding areas, and act as a new leisure destination for the rest of Dubai. The Circle Mall is currently in its design stage, with construction beginning in Q1 2015. It is expected to open in 2017. g

Dhs9bn

Special cash dividend Emaar distributes to shareholders on December 23, 2014

Louvre getting ready REALTYBYTES

ourism Development & Investment Company (TDIC), the master developer of major cultural developments on Saadiyat including three museums in the Cultural District, announced that the dome of Louvre Abu Dhabi has been successfully lifted and placed into its final position, firmly sitting on top of the museum’s four main permanent piers. The lift process included raising the dome off the temporary towers and then lowering it 38cm down to the permanent piers. The final touchdown took place in the presence of His Excellency Ali Majed Al Mansoori, TDIC’s Chairman of the Board, along with some of the board members, TDIC senior management and senior management of the main contractors. Preparations in the run up

to the lifting of the dome included extensive testing of the bearings, in California, USA, about whether they will be able to hold the dome throughout its lifespan. The lift was possible with the utilisation of 32 hydraulic jacks that can hold up to 10,000 tonnes in weight and which were operated simultaneously and remotely. The dome of the museum, which was constructed for 10 months, was originally built on top of 120 temporary towers. Its lift is the first ever in the world of construction. The dome weighs 7,000 tonnes and is 180 metres wide. H E Mansoori said, “We are proud of the successes being achieved on the site of Louvre Abu Dhabi. We applaud the dedication and hard work of the teams working together to achieve this unprecedented work” g Gulf Property

FOCUS

Rent Calculator: Guide for tenants to pay wise As residents are renewing rental agreements, many are facing exorbitantly high rents that do not conform to the Rental Index. Most tenants are in two-minds on what to do. Gulf Property sought expert legal opinion on this burning issue to help readers. Before you sign the renewal contract, kindly read this...

Gulf Property

By Alex Foo

Special to Gulf Property

he real estate market in Dubai is quite regulated as Dubai continues to grow as a global business hub and a gateway to the Middle East. Most landlord and tenant relationships in Dubai are regulated by Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai (as amended by Law No. 33 of 2008 â&#x20AC;&#x201C; known as The Tenancy Law). When the Tenancy Law was introduced in 2007, it

contained an absolute restriction on rental increase for the first two years of the tenancy. This protection for tenants (or restriction on landlords) was removed with the introduction of Law No. 33 of 2008. With the removal of the two-year rent increase restriction, landlords have been permitted to increase rent annually but only to the extent regulated by some later rent cap laws, being Decree No. 62 of 2009 and Decree No. 2 of 2011. Decree No. 43 of 2013 on Determining the Increase in the Real Estate Rentals in the Emirate of Dubai (The New Decree) was issued on

December 18, 2013, and is now in effect as the current rent cap law in Dubai. It applies to landlords from the public and private sectors and to all leases in Dubai, including leases in special development areas, free zones as well as the Dubai International Financial Centre (DIFC). Article 1 of the New Decree provides a rent cap layered structure setting out the maximum percentage increase in rent permitted when a lease is renewed. The application of the rent cap is dependent on the variance between the property rental value and the average market rental rate for properties in a specific

FOCUS Alex Foo

Rent Calculator

The New Decree provides a rent cap layered structure setting out the maximum percentage increase in rent permitted when a lease is renewed. The application of the rent cap is dependent on the variance between the property rental value and the average market rental rate for properties in a specific area in Dubai..

The layered structure of the new rent cap is summarised in the table set out below. If the existing rent is: A Less than 10% below the average market rental rate B Between 11% and 20% below the average market rental rate C Between 21% and 30% below the average market rental rate D Between 31% and 40% below the average market rental rate E More than 40% below the average market rental rate

area in Dubai. The average market rental rate is set according to the rent index produced and regularly updated by the Real Estate Regulatory Agency (RERA). The layered structure of the new rent cap is summarised in the table set out in the box item. For example, if the average market rent for a commercial office in area X is Dhs3 million per year. A tenant is currently paying Dhs2.5 million per year, being 16% below the average market rental rate. On renewal of the lease, the landlord is permitted to increase the rent by up to a maximum of 5% (being Dhs125,000) in accordance with the New Decree. The new rent cannot therefore

The permissible rent increase is: A Nil B

exceed Dhs2.625 million. To bring in line with the New Decree, RERA has updated its online Rental Increase Calculator (The Calculator) which would assist landlords and tenants in determining the permissible rental increase in accordance with the New Decree. The Calculator can be viewed via the following link: http://www.dubailand.gov.ae/ English/Pages/Rental-Increase-calculator.aspx. As a starting point, landlords and tenants are encouraged to use the calculator as a tool to determine the level of rent increase permitted (if any) under the New Decree. With the New Decree being in place and both landlords

Up to a maximum 5% rent increase Up to a maximum 10% rent increase Up to a maximum 15% rent increase Up to a maximum 20% rent increase

and tenants are encouraged to understand its implications and to be better prepared when the rental is up for review. Landlords and tenants should consider some of the practical steps set out below (amongst other compliance requirements under the Tenancy Law), to ensure the proper application of the New Decree: Step 1: As rent increase is permitted on lease renewal, landlords and tenants must identify their lease renewal dates. Step 2: It is not uncommon, particularly in commercial leases, for landlords and tenants to agree to a fixed rent or fixed rental increase on renewal. Under such circum-

stance, the contractual arrangement prevails and the agreed fixed rent or fixed rental increase will apply on lease renewal. Step 3: If step 2 does not apply, landlords and tenants should discuss possible rent increase in advance before the lease renewal date to avoid any surprises going forward. The calculator would be a good tool to determine if rent increase is permitted and by how much. This would then allow the landlord and tenant to attempt to agree the appropriate rent increase through amicable negotiation. Step 4: If a landlord and tenant disagree on the appropriate rent increase, the dispute should be referred to the Rental Dispute Settlement Centre (RDC) established under Decree No. 26 of 2013. The filing fee for a claim is 3.5% of the rental and cannot be less than Dhs500 or more than Dhs20,000. However, some disputes are not suitable for the RDC, for example if they fall within a free zone that has its own judicial committees or special courts (such as the DIFC), or the rental dispute is in relation to a long term lease which has a lease term of over 10 years. Such disputes must be referred to the appropriate judicial committees or special courts. Given that the New Decree is now in force, both landlords and tenants should be aware of the new rent cap so they can be better prepared when their rents are up for review. g .............................................

Alex Foo is the Senior Associate at Al Tamimi and Company,and has worked in Dubai, New Zealand and Australia for the past 10 years.

Gulf Property

Rent eases in Q3 in Dubai

REALTYCHECK

Despite the falling rent caps, tenants are burdened with increasing rents at the time of renewal of contracts. Residents enter the new year amid hopes of saving more from their earnings, which the rental inflation might eat up. Gulf Property offers a rental snapshot of Dubai that could help them know their correct rent, as opposed to the prevalant market rates.... JUMEIRAH BEACH RES

DUBAI MARINA

Studio Dhs90,000 1BR Apt Dhs140,000 2BR Apt Dhs200,000

JUMEIRAH VILLAGE GREEN COMMUNITY

3BR Villa Dhs230,000 4BR Villa Dhs250,000 5BR Villa Dhs260,000

JUMEIRAH VILLAGE

Studio Dhs55,000 1BR Apt Dhs80,000 2BR Apt Dhs120,000

3BR Villa Dhs180,000 4BR Villa Dhs210,000

Deira Discovery Grdns Downtown Dubai Dubai Marina International City JBR JLT Jumeirah Village Palm Jumeirah Sk Zayed Road

Studio Min Max

38 45 75 70 33 75 60 45 ---75

55 52 90 85 38 90 75 55 ---85

* Rates are in Dhs’000 per annum * % change

Gulf Property

Min

55 60 100 90 44 90 80 60 130 100

1 BR

Max

80 72 130 120 48 140 100 80 160 120

Min

80 80 150 135 62 125 120 90 160 125

2 BR

Max

110 90 190 185 68 200 150 120 230 170

DISCOVERY GARDENS

FURJAN

Studio Dhs52,000 1BR Apt Dhs72,000 2BR Apt Dhs90,000

3BR Villa Dhs200,000 4BR Villa Dhs220,000 5BR Villa Dhs260,000

Average Apartment Rental Rates in Dubai in the third quarter of 2014 Neighbourhood

Studio Dhs85,000 1BR Apt Dhs120,000 2BR Apt Dhs185,000

Min

100 n/a 210 150 n/a 160 150 115 230 160

3 BR

Max

150 n/a 290 270 n/a 240 190 150 290 220

Q2-Q3 2014

-1 -7 0 -2 -7 -1 0 -2 3 -1

Q3 2013 Q3 2014

35 23 25 36 40 34 42 28 21 21

Source: Asteco

Average Villa Rental Rates in Dubai in the third quarter of 2014 Neighbourhood

Al Furjan Arabian Ranches Victory Heights Green Comm. Jumeirah Jumeirah Islands Jumeirah Village Meadows Mirdif Palm Jumeirah Springs

2 BR Min Max

----150 ----------------135 ------------125

----185 ----------------165 ------------135

* Rates are in Dhs’000 per annum * % change

Min

165 170 195 210 175 ----145 220 115 260 180

3 BR

Max

200 260 200 230 230 ----180 260 155 380 205

Min

190 270 200 230 220 300 160 250 135 400 -----

4 BR

Max

220 350 280 250 330 360 210 300 180 525 -----

Min

240 280 260 230 270 330 ----270 160 500 -----

5 BR

Max

260 420 360 260 450 410 ----350 200 950 -----

REALTYCHECK Q2-Q3 2014

0 -5 1 -3 -3 0 -4 1 -5 -3 -8

Q3 2013 Q3 2014

7 13 4 -1 35 4 12 5 12 9 14

Source: Asteco

PALM JUMEIRAH

3BR Villa Dhs380,000 4BR Villa Dhs525,000 5BR Villa Dhs950,000

JUMEIRAH LAKE TOWERS Studio Dhs75,000 1BR Apt Dhs100,000 2BR Apt Dhs150,000

MEADOWS

JUMEIRAH

3BR Villa Dhs230,000 4BR Villa Dhs330,000 5BR Villa Dhs450,000

SHEIKH ZAYED ROAD

Studio Dhs85,000 1BR Apt Dhs120,000 2BR Apt Dhs170,000

DOWNTOWN DUBAI

Studio Dhs90,000 1BR Apt Dhs130,000 2BR Apt Dhs190,000

DEIRA

Studio Dhs55,000 1BR Apt Dhs80,000 2BR Apt Dhs110,000

3BR Villa Dhs260,000 4BR Villa Dhs300,000 5BR Villa Dhs350,000

VICTORY HEIGHTS

3BR Villa Dhs200,000 4BR Villa Dhs280,000 5BR Villa Dhs360,000

MIRDIF

3BR Villa Dhs155,000 4BR Villa Dhs180,000 5BR Villa Dhs200,000

ARABIAN RANCHES

3BR Villa Dhs260,000 4BR Villa Dhs350,000 5BR Villa Dhs420,000

INTERNATIONAL CITY Studio Dhs38,000 1BR Apt Dhs48,000 2BR Apt Dhs68,000

SOURCES: Asteco, Cluttons, Jones Lang LaSalle and Reidin

Gulf Property

INTERVIEW

Dubai: From trading outpost to smart city

By Indrajit Sen Senior Reporter

Dubai, once a fishing settlement or a small-time trading outpost on the shore of the Arabian Gulf, has come a long way to develop itself as a major global trading, tourism and financial hub – in a span of just 50 years, or even less. Now, the Middle East’s most technologically advanced city is transforming itself into becoming a ‘Smart City’ 20

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– the first in the region. Dubai Municipality – the emirate’s biggest administrative and civic body – has been at the forefront of this transformation. Dubai Municipality is also currently spearheading the digitisation process of the city’s administrative services – from e-services to m-services to make the city ‘Smart’. Gulf Property brings the tale of this exciting journey to our readers through an exclusive interview with Engineer Hussain Nasser Lootah, Director General of Dubai Municipality.

INTERVIEW

Dubai then and now: A rare aerial photo (above) of the Dubai Creek of the bygone era. Back in the day when Dubai was primarily a trading port, the Creek welcomed vessels and merchants from all over. As Dubai transformed itself into a global economic and tourism hotspot, the landscape changed over the decades. The photo below shows the urban skyline of todayâ&#x20AC;&#x2122;s Dubai Marina.

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INTERVIEW The headquarter of the Dubai Municipality in Deira

ubai, a once fishing settlement and part of the former British protectorate – the Trucial States – has undergone a rapid growth to become a major global trade, tourism, financial and economic hub within just half a century, or even less. Its meteoric rise from a humble trading port to an economic giant is a tale worth telling. What other cities take generations to achieve, Dubai did in just a few decades. From 1960s to the 2010s – the emirate experienced great momentum. Dubai

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achieved tremendous development in all arenas in a mere span of 50 years, thanks to a visionary leadership and the emirate’s administration – all once part of the Dubai Municipality. In the 1960s to 80s, Dubai used to be run by the Dubai Municipality – which was responsible for all the day-today administrative and civic affairs. At the time, the Municipality was even responsible for issuance and renewal of trade licenses, healthcare, roads and transport and many other activities. Dubai used to be a city-state with

the Municipality basically performing all of the city’s necessary functions. In the due course of time, the Government of Dubai created the Department of Economic Development (DED), to undertake the responsibility of trade and commerce, and the Roads and Transport Authority (RTA) to look after the infrastructure development and expand its urban transport network. Gradually, the Dubai Municipality’s role became limited to performing the core functions of a typical civic body – manage everyday

civic affairs, cleanliness and environment nurturing, development of civic facilities, urban development, building construction supervision – in short making the city more ‘green’ and sustainable. Eventually, the Dubai Municipality streamlined its work processes and created egovernment services to reduce human intervention and help automate the civic services under the Dubai E-Government programme, initiated in 2002. However, instead of shrinking its workload, the Municipality’s responsibilities

increased manifold â&#x20AC;&#x201C; as the city expanded to accommodate more than 2 million people. The reason life has remained pleasant in Dubai, despite the pressures of massive-scale urban development, is due to the efficiency of the government departments such as Dubai Municipality â&#x20AC;&#x201C; which approves buildings by issuing proper construction permits for landscaping, urban development, etc. In an exclusive interview with Gulf Property, Engineer Hussain Nasser Lootah, Director General of Dubai Municipality, explains the details of the organisationâ&#x20AC;&#x2122;s activities, as well as its preparations for making Dubai a Smart City and gearing itself for the Expo 2020. Excerpts:

In Dubai today, there are multiple real estate projects under construction. Besides the many Dubaibased developers, there is a big number of foreign builders too who are launching projects here. What is your view on that? Dubai is an international city in which real estate and construction is considered as a major motivator of investment and economic development. And the number and size of ongoing projects in Dubai is of the highest quality in the world. These projects are mainly developed by local builders, with some share of foreign companies, who are registered in Dubai as per the regulations governing their activities from both the Department of Economic Development and the Dubai Municipality.

What are the criteria a developer must meet in order to build a project in Dubai?

INTERVIEW

The ascent of Eng. Lootah

ngineer Hussain Nasser Lootah graduated from the University of Arizona in the United States in 1980, as a civil engineer. The same year, he joined the Ministry of Electricity and Water, where he worked for 5 years. In 1985 he joined the Dubai Municipality as an Assistant Head of the Department. He continued in that capacity until he became the Director of Sanitation Management and Assistant to the General Manager of the Municipality for the Environment and Public Health. He also oversaw the public health, environment, agriculture, public parks, sanitation and irrigation departments. In 2004 he was appointed as the Assistant DirectorGeneral for Planning and Building. On December 22, 2005, he was transferred and appointed as Deputy Director General of Dubai Municipality. He also chaired several committees in the municipality, such as the Technical Committee and the Committee of Strategic Planning, e-Government, Personnel Committee, and organizing committees for a

Real estate developers are registered and governed by the Dubai Land Department and the Real Estate Regulatory Agency. However the Dubai Municipality is responsible for builders (contractors and consultants). They can register and work here as a foreign practitioner, either as a consultant or contractor, acting as a branch representing a mother foreign

number of conferences organised by the Dubai Municipality. He was also instrumental in bagging more than 30 local, regional and international awards for the Dubai Municipality. Besides, Eng.Lootah has had a prominent role in the establishment of the Society of Engineers and was its company practicing in different country.

How easy or difficult is it for a builder to obtain permission from the Municipality for a project? Do the same rules apply to a foreign builder or are the criteria stricter? The process of obtaining building permit for construction is the same for locals

chairman from 1992 to 1996. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and the Ruler of Dubai promoted Eng Lootah as the Director General of Dubai Municipality on January 7, 2009. g and foreign builders once registered. But the difference is in the registration process, which is not strict or difficult. It is only a matter of different requirements, since it is acting as a branch of a foreign builder.

There have been rumours that Dubai might witness a repeat of the 2008 financial crash, or price bubbles Gulf Property

INTERVIEW

which might burst. What measures is the Dubai Municipality taking to avoid such a nightmare and to ensure transparent transactions? Price bubble like 2008 is not expected to happen, mainly because many measures have been taken since the international economic slow-

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This file photo shows Dubaiâ&#x20AC;&#x2122;s arterial Sheikh Zayed Road as it was in the 1990s. With the boom of the real estate market, this very road became a property hotspot and today stands adorned by towering skyscrapers, as seen in the photo below

down occurred. An example of these efficient measures are the new regulations governing ownership of the real estate projects, selling them and reselling through the landlords. These laws guarantee that no launch of any project is possible unless there is enough financial coverage,

and selling is allowed for customer only after executing a certain stage of construction. In addition to these measures, there are also additional financial and ownership requirements that have been placed. Does the Municipality work with other bodies such as

the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA) to oversee the property market? The Dubai Municipality as well as other authorities are represented in the Infrastructure Committee governed by the Executive Council of Dubai. Also there are regular

INTERVIEW

“Price bubble like 2008 is not expected to happen, mainly because many measures have been taken since the international economic slowdown occurred. An example of these are the new regulations governing ownership of the real estate projects, selling them and reselling through the landlords.”

- Eng. Hussain Nasser Lootah, Director General, Dubai Municipality

communications and meetings between these parties and the Dubai Municipality regarding all mutual matters, and especially in the planning and building issues.

His Highness Sheikh Mohammed Bin Rashid Al Maktoum has recently launched the ‘Happiness Index’ which helps monitor how happy people in Dubai are about government services. How is the Dubai Municipality implementing

it? How successful has it been so far? In the context of the overall boom in the country, led by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, VicePresident and Prime Minister of the UAE and Ruler of Dubai, the Dubai Municipality has launched this unique quality initiative, to attract global attention to the Emi-

rate of Dubai, and to highlight the unique civic experience behind its many accomplishments. The move reflects the initiatives of Dubai Municipality, which undertakes most of the initiatives and projects of Dubai. If we look at the achievements of the UAE, we find many ambitious projects. As a supporting environment for innovation sponsored by the Dubai government, we made it a powerful magnet for creative energies in various sec-

tors. Over the years, Dubai managed to embrace worldclass events and festivals, which are classified as top six cities for festivals and events around the world, according to the classification of the International Union for Festivals and Events. Dubai has an ideal environment for launching innovative initiatives that enrich the gross domestic product, and contribute directly to activate important economic sectors. Gulf Property

INTERVIEW

Due to the Dubai Municipality’s fine urban planning, the city today is a beautiful and modern metropolitan

The Dubai Municipality is rooted to its origin and the rich heritage of the city. The Museum the Municipality operates is a testimony to its commitment to preserve Dubai’s traditions

The Dubai Municipality is focussed on creating a green and sustainable environment. This garden on the rooftop of a building shows how innovatively it strives to offer greenery

The Dubai Municipality hopes that by launching this initiative we are making happiness a requirement of life desired by the people who live in Dubai. The UAE is the world’s 14th top destination in happiness index, according to the United Nations. Here comes the role of Dubai Municipality as committed to the concept of sustainable happiness of the citizens, residents and visitors, through our services and world-class facilities such as public parks, recreational facilities and public beaches.

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Dubai Municipality has also started to implement initiatives as part of the ‘Happiness Index’, as the first of its kind in the world to measure happiness, public satisfaction with government services provided to them. So on a daily basis via a smart devices-linked centralised network, we have provided 23 screens to evaluate all services provided to the public. The index will be built on the quality of data obtained through the application that gives the recipient of the service three options to determine the extent of the ex-

perience of happiness service received by the results. The application will be available at the point of receiving the service as part of ‘Vision 2021’. This initiative aims to achieve service excellence and raise customer satisfaction levels, including the proposal and the application of mechanisms and communicate with them and get to know their expectations and measuring their satisfaction, and to identify the needs and expectations of customers around services provided by the Municipality.

Kindly elaborate on the Dubai Smart City project. What are the government services that will be included in that? How is Dubai Municipality working with other government bodies to execute the Smart City initiative? The Dubai Municipality is keen to implement the Smart initiative and the conversion to mobile-enabled services. With regards to the services provided by the Municipality to its customers, we have worked to simplify and facilitate accessibility for all our customers in various lo-

The Dubai Municipality is not just working day and night to maintain and upgrade Dubai’s stature as a global Smart City, but is also at the forefront of the city’s preparations for EXPO 2020

cations. We have ensured that the trader will save both time and effort. This step will enhance Dubai's position in the global competitive race. This shows we have come a long way. We have strengthened our position year after year, overcoming many of those who had gone before us in the provision of services. If we go back to the transition to a smart government process, it is a new qualitative leap in the field of modern technology for government transactions and applications. We find that the

Dubai Municipality has been at the forefront of this movement. The launch of this initiative would lead us to continue to reach the peak in all aspects of life and help the development of government services around the clock, which are also easy and simplified. The objective is to provide high efficiency and transparency in accordance with the Government’s ‘Vision 2021’. A committee is developing plans and programmes necessary to implement the services and smart transaction applications through mo-

bile platforms in order to enable the client to obtain the required services around the clock. All municipal services are now available online. Several initiatives have already been launched in order to provide services through smart phones. The Dubai Municipality has transformed itself towards the right side of the digital divide in a short period of time. The Municipality has recently launched a range of applications and smart programmes; notably the new version of the application

INTERVIEW

‘iDubai’. Internationally recognised, the application works perfectly for smartphone applications and includes many of the elements associated with the tasks of the Municipality and associated online functions.

What preparations is the Municipality taking for EXPO 2020? What are the special plans? Dubai Municipality is a member of the Supreme Committee for Expo 2020 and implements all the measures what is required from this committee. g Gulf Property

FOCUS

2015: The year of slower growth

Gulf Property Exclusive

he year 2015 might witness a slower growth than last year as it does not hold any surprises, according to matured predictions. Dubai’s Gross Domestic Product (GDP) is projected to grow at 4.5% this year, according to the Department of Economic Development (DED). “Real estate, construction and manufacturing sectors are expected to lead Dubai’s economic growth in 2015. They collectively represent 58% of Dubai’s GDP,”

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Dr. Mohamad Lahouel, Chief Economist of the Department of Economic Development, Government of Dubai, said at a conference in Dubai last month. “Real estate supply is expanding at rates not seen in several years. Rents and real estate prices have sharply increased since mid2013 but there are signs of a slowdown,” Lahouel said. The increase in the cost of housing accounts for most of the inflation recorded in 2014, he said. “The Central Bank and the Dubai Government regulations (macro-prudential tools and registration fees) have contributed to this slowdown,” he said.

Yousuf Kazim, General Manager of Jumeirah Golf Estates, said, “Every property market is tied to the economic landscape. With great infrastructure and maturing of markets, any correction will not experience the intense decline as seen in 2008 and 2009.”

Falling Oil Prices

However, the impact of the falling oil prices on the overall economy and the real estate sector remains to be studied carefully. The decrease in crude oil prices had affected the region’s stock markets badly in December and had wiped out the gains

of the entire year in a few week’s time. ‘Lower oil prices are leading many in the GCC to wonder about the possible implications for real estate. In the near-term, weaker sentiment and its impact on the residential property sector is the principal downside risk. Commercial property however should be able to shrug off such concerns as the region’s medium to long-term prospects remain strong’, global research firm Knight Frank said in its latest report. After hitting nearly US$108/barrel in June, the average OPEC (Organisation of Petroleum Exporting Countries) reference price fell to just under US$76/ bar-

The total value of contracts awarded in the GCC is projected to rise to approximately US$196 billion in 2014, from almost US$160 billion the previous year – an annual increase of 22%. The peak of the regional real estate boom in 2006-07 took place when oil prices averaged US$67US$73 a barrel, prices similar to the present day.

rel in December. Despite the sharp fall though, OPEC decided to leave its output ceiling at 30 million barrels per day(b/d) at the meeting in Vienna in December, a notable departure from its traditional stance of cutting production in order to prevent prices from sliding further. There has been no shortage of animal spirits in the Middle East, particularly in the oil-rich GCC countries, Marios Maratheftis, Head of Macro Research at Standard Chartered Bank, said. “These economies boomed in 2014 on the back of increased spending on infrastructure projects. Although GCC economies are taking active steps to diver-

sify, government revenues are still highly dependent on hydrocarbon proceeds. The drop in oil prices in 2014 raises the question of whether GCC governments can keep raising government spending year after year without facing fiscal pressures,” Maratheftis said. “The answer is that they probably cannot, and fiscal policy will have to be reassessed. We expect oil prices to rebound in 2015. Our client surveys in the GCC suggest optimism for 2015. With animal spirits high, we expect moderately slower but still-high rates of growth in the GCC,” he opined. In the non-hydrocarbon sector, the seasonally adjusted UAE and Saudi Arabia Purchasing Managers’ Indices (PMI) remained well above the 50-no change mark in November – pointing to healthy expansion in the markets’ private non-oil sectors. The need to move ahead with the continued diversification of the economy is one of the main reasons why Abu Dhabi and the rest of UAE are not expected to slow project spending despite falling oil prices. Indeed to illustrate this, according to data from MEED Projects, the regional online projects tracker, Abu Dhabi awarded a record US$50 billion worth of projects alone in 2009 despite the global recession and a drop in the average oil from US$99 a barrel to US$58 a barrel.

‘This is positive news for real estate, not least because the non-hydrocarbon sector is an important source of demand for property owners in the GCC’, the report says. Moreover, the peak of the regional real estate boom in 2006-07 took place when oil prices averaged $67-$73 a barrel, prices similar to the present day. And with regional governments having built up considerable foreign currency reserves, they have cash to continue financing projects despite any budgetary shortfalls. In Abu Dhabi’s case, the value of planned and unawarded projects is considerable, totalling close to US$100 billion. The largest sector going forward is construction, followed by oil, gas and power. Total GCC contract awards for 2014 as a whole are expected to surpass US$160 billion for the very first time, while the UAE is forecast to once again become the largest projects market in the region, according to MEED Projects. Also, in the short to medium-term, the expectation is that GCC governments will not cut back on current levels of spending, even if oil prices fall further and budgets slip into deficit. After all, these nations have accumulated substantial surpluses over the past decade, leaving them in a position to be able to finance deficits for some time to come, according to Emirates NBD research. ‘Notably, Saudi

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Arabia has vast foreign currency reserves to fall back on. This is important given that large publicly funded, infrastructure-related schemes tend to stimulate hinterland construction activity, and thus support growth in the real estate sector. And there is plenty scheduled to be built’, it said. According to a recent report by Ventures Middle East, the total value of contracts awarded in the GCC is projected to rise to approximately US$196 billion in 2014, from almost US$160 billion the previous year.

Investor Confidence

Dubai, Abu Dhabi, Doha and Muscat’s bourses have all suffered losses on the back of falling oil prices. The softening in investor sentiment however isn’t likely to be reflected in just equity prices, a Knight Frank report said. ‘Historically, there has been a reasonably strong correlation between the Dubai Financial Market General Index and residential property prices; if this relationship holds, home prices in the emirate should continue to trend down in Q4 2014’, it said. Commercial property, though should be relatively resilient, given that firms tend to take a medium to longterm view, which continues to look positive for the GCC. ‘Over the next few years, with government spending in the GCC unlikely to be curbed, infrastructure construction should provide a strong basis for growth in the real estate sector. Although weaker sentiment stemming from lower oil prices may act as a drag on residential prices in the near-term’, the report observed. g Gulf Property

OPINION

A Period of Sustained Growth and Stability

By Zainab Mohammed CEO, Property Management, Marketing and Corporate Communications wasl Asset Management

would say that the outlook for Dubai’s real estate sector for 2015 is one of sustained growth and stability. This trend has been a feature of the city’s property market since mid-2013, with the expansion in the market being met by demand from local, regional and global investors. Furthermore, and due to renewed investor confidence, the market has seen a flurry of activities and transactions across freehold and leasehold sectors with the introduction of new projects across residential, hospitality, retail and commercial. Dubai’s real estate sector has come a long way to a matured stage where growth and decline will go through a cyclic order based on the economic fundamentals. In 2014, we have seen the market witness a sudden surge in freehold prices as well as rents jump to a level that the market fundamentals could not support. As a result, we have seen the

A case in point, the rental prices for all of wasl’s units across all levels are in line with average market prices in Dubai. 30

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prices and rents come down to a more realistic level. Going forward, the market will respond to the demandsupply curve and prices and rents will move according to these fundamentals. I believe, we will continue to see a surge in supply of residential property in 2015, as many residential projects will be completed. Overall, the market is currently very dynamic and we are anticipating that this high level of activities will continue at a steady rate well beyond the World Expo 2020. Furthermore, from a hospitality perspective, the hospitality real estate market is continuing to grow at an equally steady rate with the government supporting the introduction of more midrange hotels and accommodation in the lead up to the year 2020. Wasl’s hospitality arm, wasl hospitality, currently has 11 hotels across the emirate of Dubai, in addition to 19 new properties in the pipeline until 2017.

Rental Market

The rental market is currently in a healthy state and will continue to remain so in

the coming few/several years. With the surge of supply expected in 2015 many residential projects at different levels will be completed, from luxury to mid-to-low range housing. We are presently witnessing a strong demand from individuals and families wishing to upgrade or relocate their homes to more modern and convenient areas of the city. Dubai is a city that is fortunate to see constant demand for residences. Demand is such that all our regeneration projects launched in 2014 are enjoying 99% occupancy rates. I believe that we will see more balanced rental prices as an increased number of properties are completed and come on line in 2015. There is some anecdotal evidence to suggest that landlords are keeping prices artificially inflated as they would rather see their properties go empty than accept what they feel – rightly or wrongly – is the market rental rate. Rental rates in Dubai are controlled and determined by a balanced supply and demand equation. High demand coupled with increased supply adds to the dynamism of the market. This demand-supply relationship prevents developers from posing high prices and increasingly, landlords are abiding by the laws and policies put in place to regulate the market, so there is no room for inflated or exaggerated prices. A case in point, the rental prices for all of wasl’s units across all levels are in line with average market prices in Dubai.

Dubai is a city that is fortunate to see constant demand for residences. Demand is such that all our regeneration projects launched in 2014 are enjoying 99% occupancy rates.

Low-Cost Housing

The low-cost housing and property market is currently expanding in Dubai. Lately, we have been seeing more affordable housing options being offered across all areas of the city, in a move to diversify the housing and residential options on offer in Dubai. Perhaps the current supply is less than what is actually required given the economic diversity of the population of the city; consistent efforts are being made to introduce more lowcost living options to Dubai’s residents. wasl is playing a role in offering all strata of housing to all segments of Dubai and to the real estate and property market. By doing that, we are giving the chance to all of those medium to low income slices to benefit from good quality living and a modern lifestyle at affordable prices. wasl’s extensive portfolio of land and property allows us to offer more reasonablypriced housing options in areas such as Muhaisnah, Al Qusais, Ras Al Khor and Al Karama, among others.g

OPINION

Growth to Continue

By Yousuf Kazim General Manager Jumeirah Golf Estates

lthough the market has cooled off somewhat, with average residential sales prices in Q3 2014 up by just 1 per cent quarter-on-quarter, down from 6 per cent in the second quarter. Factors behind this cooling off relate to tighter government regulations. These new regulations such as doubling the transaction fee to 4 per cent and capping mortgages have had a significant impact on the real estate market in Dubai. This measure, however, is imperative to control speculators and level out the marketplace, ensuring sustainability of healthy growth in line with expectations of any global markets. We at Jumeirah Golf Estates, have seen the emergence of a more educated and intelligent buyer, who carries out detailed due diligence before entering contract to purchase. Every property market is tied to the economic landscape. With great infrastructure and maturing of markets, any correction will not experience the intense decline as seen in 2008 and 2009. Knight Frank recently revealed a comparison of the relative low cost of Dubai property today in comparison to other global cities. For example, Monaco is almost ten times as expensive per square metre, Hong Kong seven times and Sin-

gapore almost five times. Considering that Dubai and the UAE in general are now recognised global hubs, growth in real estate prices is expected to grow to match other global markets over the forthcoming years. One could put forward a counter argument that, although values and rents may be stabilising to an extent, they are still maintaining a positive growth trajectory and we expect this to persist, which will in turn deliver the sustainability we have been anticipating. The careful implementation of measures at a federal and Emirate level have been exceptionally successful in transforming the residential markets; this is particularly true in Dubai, where growth is now tracking at a much more sustainable rate as the market matures further. When looking at individual developments, it is apparent that to become successful in this highly competitive market, it is vital that certain USPs exist within that development.

Rental Market

As markets begin to settle, we expect asset appreciation to slow and investors will become more reliant on

rental income. This will encourage sustainable rental appreciation as landlords face competition due to the supply of residential units. In the short term, around 19,000 new units are expected to enter the residential market in 2015. The expected new supply across the Emirate should help keep rental inflation in check, controlling the spiraling cost of living, which has seen rents rise close to 50 per cent during the past two years, when there was a supply shortage. Whilst rents are stabilising in general, and in certain locations correcting downwards, it is not expected that they will fall, as a whole, significantly due to the levels of demand and insufficient rental stock coming to the market in the short to medium term. It is important to note that, although values and rents may be stabilising to an extent, they are still maintaining an upward trend and we expect this to persist. This will in turn deliver the sustainability we have been anticipating. The UAE maintains a free market economy with minimal restrictions on private sector activities, international trade and capital movements. Despite the impact of the global economic downturn, the UAEâ&#x20AC;&#x2122;s economy has proven to be resilient and became one of the first nations to restore investor confidence. Higher commodities prices, increased government spending and a noteworthy resurgence in tourism, transport and trade have contributed to the upswing in the economy. In addition, the successful

restructuring of debt by high profile companies, solidarity amongst the Emirates and accommodative monetary/ fiscal policies have all played a significant role in providing sustainability to the market. Therefore, we believe that this positive market has enabled all participants in the property market to benefit, including buyers. It will always be the case that the source providers, namely developers and brokers will be the major winners in terms of short-term financial return. Longer term gain will be a benefit of investors and end-users. This is seen in long term asset appreciation and short term rental returns in particular. We do acknowledge that market dynamics have changed and investors are much more educated and knowledgable, looking very closely at product offering including location, price, rental yields. All of this entails that we as developers, have to be much more thorough in our marketing collateral and specifications. In the UAE, it is perceived that we need to establish a supply of low cost housing given future projected growth and taking into account the GDP per capita, adjusted by purchasing power parity (PPP), which averaged $29,900 in 2013. Therefore, looking at the UAE and GDP per capita, the fundamental requirements are affordable housing and not low-cost housing which will target communities with monthly household earnings averaging Dhs15,000. The affordable housing requirement is estimated at approximately 20,000 units.g Gulf Property

FOCUS

The Market to Balance Out

By Andrew Elias Chief Executive Officer Kele Contracting LLC

he UAE's construction sector in 2015 is well positioned to build upon a strategically successful year of growth and stability in 2014, which saw a number of key government projects green lighted. Favourable government policies in 2014 also paved the way for rising Foreign Direct Investment (FDI) in the construction sector – the resulting construction projects across the country have provided a strong outlook for 2015. Continued developments in UAE infrastructural construction projects will provide a high number of employment opportunities for workers across the construction sector in 2015, utilising the expected high level of migration to the region and ensuring a strong sector throughout the coming 12 months. Looking beyond 2015, the World Expo 2020 will add further stimulus to the economy, the event has already had a big impact on the construction sector with the proposal and commissioning of new projects; a trend is expected to increase as the events draws closer. Compared to some of the world’s other foremost cities anticipating construction sector growth, the UAE’s construction sector holds enormous scope for future progress and will surely offer attractive opportunities over the coming year, as well as over the longer term.

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The property market in Dubai has seen remarkable growth over the year 2014. Independent studies have shown house price growth in the emirate to be among the highest in the world. The commercial market in particular – especially at the premium end – has been buoyant. Nor has exceptional growth been confined to Dubai in the UAE alone: Abu Dhabi, notably during the first half of the year, continued the strong resurgence that characterised 2013. My view is that 2015 will prove to be a key year in the UAE rental market for a number of reasons. We can see from the market research and data provided by analysts that the rise of Dubai’s fast-growing residential real estate market holds similarities to that of the 2008 and 2009 downturn; however a dramatic drop is highly unlikely this time around. It is my view that while rents are increasing the market is heading towards a plateau; a new phase of stability and sustainability. Our understanding of the importance sustainable development holds for the housing sector is more established today – looking

The current rise is unsustainable and the market will balance out in 2015 before endusers suffer. Cooling of property prices is already evident in the consistent fall in property purchasing asking prices, which will in turn benefit those in the rental market ahead to 2015; the real estate market is likely to peak in the coming months and with strategic management in place, we’re unlikely to see a regression, much less a dramatic downturn as we did in the recent past. The pricing out of endusers, if this indeed transpires, is likely to be a short term phenomenon due to the expected future construction developments planned to cope with the current and future growth rates in the region. With regards to property prices, it is my opinion that the current rise is unsustainable and the market will balance out in 2015 before end-users suffer. Cooling of property prices is already evident in the consistent fall in property purchasing asking prices, which will in turn benefit those in the rental market. Furthermore economic conditions today build the foundations for a fundamentally stronger real estate market. A number of sensible government regulations – with significant steps taken

to limit speculative buying, a major contributor to the downturn of 2008 – have helped to shore up sustainability in the real estate market. Additionally, the enormous scope for future growth over the coming years, coupled with the planned property developments will provide a balance between supply and demand further adding confidence to the notion that over the long term sustainability will be achieved.

Low-cost Housing

There’s no denying that there is an immediate need for affordable housing, especially in Dubai. In recent times, any property situated conveniently with a reasonable price tag is snapped up immediately, creating a large gap in the housing market for a large segment of the population who are yet to experience a rise in salary consistent with the rising property prices. The fact is that individuals are now moving further away from the popular central locations into areas such as Sharjah, Ajman and International City in search of affordable property, evidence of which is the rapidly falling non-occupancy rates in such areas. Despite the attention afforded to more luxurious properties – the plight of ‘affordable developments’ is indeed receiving growing consideration. Many of the top property developers in the region have acknowledged this issue and we have begun to see the early stages of this issue being addressed.g

FOCUS

Positive Outlook

By Gurjit Singh Chief Development Officer Aldar Properties PJSC

ollowing a period of price stabilisation in 2014, Abu Dhabi real estate rents and capital values are likely to resume a steady upward trajectory in the coming year, as government investment in social and physical infrastructure continues to feed demand for property. Although the dramatic fall in global oil prices in the second half of 2014 has fuelled investor fears that governments across the Gulf region will cut investment, there are strong reasons to suggest this will not materialise – at least in the short to medium term. Data collated by MEED shows that capital investments in oil and gas production have hardly been impacted by previous falls in the global oil price. There is little reason to believe spending patterns will change significantly this time around given that hydrocarbons remain core to the region’s economy and the GCC can count on reserves of around US$1 trillion following several years of budget and current account surpluses. Governments are equally committed to economic diversification projects – precisely because they want to reduce long-term dependency on hydrocarbons – so while new projects may come under greater scrutiny, current projects in physical and social infrastructure are likely to continue. The recent spate of IPOs

and bond issuance has also raised capital for private projects. And the region’s banks maintain strong capital and liquidity positions, and are able to step up funding. In the UAE, the average capital adequacy ratio stands at a healthy 14 percent and the advances-to-deposit ratio is at 92 percent. Credit off-take has not picked up significantly since the global crisis, while bank deposits are increasing at a healthy rate. So despite the recent panic in public securities markets, the macro-economic situation bodes well for the property market, and we can expect a steady increase in demand for residential, commercial and retail real estate. The Abu Dhabi market, which experienced an oversupply situation in the 20102012 two year period, has now found a healthy equilibrium. Rental and capital values saw strong increases in 2013, with over 20 percent rises registered in the more popular, modern residential developments. A subsequent period of stabilisation in 2014 means that prices are now back in line with market expecta-

Although the dramatic fall in global oil prices in the second half of 2014 has fuelled investor fears that governments across the Gulf region will cut investment, there are strong reasons to suggest this will not materialise... tions. Although it may seem too soon for Abu Dhabi real estate to resume an upward trend, demand and supply fundamentals suggest that we could indeed see prices rise again moderately in 2015. Real estate cycles have compressed globally, and they have become more synchronised. This is due to increased interconnection between economies at a time when major governments and central banks have been aggressively intervening to stimulate their economies – often with the expressed aim of prompting asset price inflation. In Abu Dhabi, the residential sector remains the strongest performing sector driven by employment growth and potential undersupply of quality residential developments. This will continue to put upward pressure on rents and prices. The removal of the rent cap has also contributed to the upward pressure. There is a need to ensure the rental index that has been proposed for Abu Dhabi is introduced as soon as possible to ensure rental increases are marked to market. This is important to ensure

rentals in Abu Dhabi remain competitive and do not price out consumers of the residential rental market. In any real estate cycle it is important for developers to cater to all sectors of the market and not just the high end spectrum of the market. This applies to all asset classes. We believe that mid income residential development and community retail should be developed to cater for all segments as we have done across our destinations in Shams Abu Dhabi and Raha beach and we will do across our residential developments on Yas Island. This also helps to smooth a property developer’s market segmentation by being able to penetrate the market at every point in the real estate cycle. Mid income residential is the key to stabilisation of residential markets as it caters to the mass market and smoothens the pricing out of the mass market consumers of residential real estate. This is the strategy we are adopting when looking at our development pipeline and our 77 million square metres landbank of which 90 per cent is investment zones and the majority of which is infrastructure enabled. Currently we have 23 projects being assessed for development to meet market demand. Overall, the outlook for Abu Dhabi and the UAE is positive as we move into the next real estate cycle. The conditions for growth are excellent with growing economic environment in Abu Dhabi and a maturing and increasingly stable real estate market.g Gulf Property

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A Promising Year Ahead

By Natasha Gangaramani Executive Director Al Fara’a Properties

he temporary lull in the UAE’s real estate market is set to change in 2015 for the better due to a number of reasons. However, before we embark upon 2015, let’s take a cue from the year that has just passed. The year 2014 started with the UAE’s historic win of the Expo 2020 for Dubai that had created a strong investor confidence and interest and we had seen price jump to an unrealistic level that the market fundamentals could not hold. So, once the Expo 2020 enthusiasm came down to a more realistic level, so did the real estate market sentiment. As a result, we had seen a natural correction during the second half. However, if one compares the base price and rental scenario of mid 2013 against mid 2014 prices and rents, one would see the prices and rents are still above the 2013 level – which means there have been an increase in both, despite the correction. This shows a responsible growth pattern. This also shows that Dubai’s real estate market has matured, to the extent that it’s prices will move along with the market fundamentals, i.e. the demandsupply line, rather than move along with sentimental or artificial hype. This is a significant development and reflects the fact that the market is coming of age. So, it is at this historic

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backdrop that we are entering the new year, 2015. Let’s take a stock of things regionally and internationally and how these factors could affect the UAE’s real estate market this year. First, the declining oil price might affect government-related projects in the GCC. Whether that happens in the UAE is to be seen. It’s impact in Dubai economy might not be negative as the emirate’s economy is no longer dependent on oil, rather trade, retail and tourism – all of which benefit from lower oil price. Besides, Dubai has a welldeveloped infrastructure already in place that is good enough to serve the city for sometimes without additional massive investment. Following the Arab Spring, the region seems to be stabilising, with the exception of the ISIL/Daesh insurgency which will eventually be contained. There is no reason for us to panic or be concerned about from the Middle East region. There is another factor that could push up demand this year – easing of sanctions on Iran. If sanctions are lifted fully, business and public movement to and from Iran to Dubai will boost Dubai economy further as

more and more Iranian investors will look at Dubai and use it as a natural gateway for their own economy. This will also positively affect Dubai’s real estate market. The major economies are adjusting to new positions in their historical growth cycles with varying and sometimes counter-intuitive implications for the credit markets, according to credit rating agency Moody’s. Improving rates of growth are generally credit positive; however, for some sectors such as US commercial mortgagebacked securities, the continuing rise of property prices combined with increasingly aggressive underwriting practices, both typical in an expanding economy, will have negative credit implications for newly issued transactions. The US dollar should remain strong in 2015 as the US economy outperforms and the Fed moves to the exit. It would be interesting to see which way the global capital flows – that might have an effect on the regional real estate and equity markets. In Dubai, 22,000 new housing supplies are expected to be added to the 373,000 existing housing units. It would be interesting to see if the demand exceeds the supply this year. However, going by the increased job creation and new families moving in, the demand could outpace supply this year, which could trigger an increase in prices. The new lower- to middleincome groups usually seek residences in the suburbs or in the nearest neighbourhoods of Sharjah. It would be interesting to see how many well-paid jobs are cre-

ated to fill up the high-end inventories. With a 5% estimated economic growth rate, coupled with the new projects linked to World Expo 2020 could push the demand a bit. However, I do not see a major fluctuation in the market. The projects announced at the Cityscape last year, would help sector to grow further. In fact, the UAE real estate market will witness a responsible growth this year without any surprises, unless the government creates surprises with some major initiatives that we are unaware of. Looking at Dubai’s history, the government always comes up with pleasant surprises that boosts the markets and investor confidence. Expo 2020 was such a surprise move that had its intended effect on the economy. Last year, the government announced the Mall of the World project – out of the blue – that was such a pleasant surprise for all of us. This is definitely going to support thousands of jobs and create thousands more. Most of the Expo 2020 projects are yet to be offloaded as they are still under planning and evaluation stage. We expect some of them to come to the market later this year, after Dubai experiences the Expo 2015 in Milan, Italy. However all said, the world-class infrastructure, superb global connectivity, continued development activities inspired by the government’s vision and with strong regulatory regime – all bodes well for continued investment in the country’s real estate sector.g

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Momentum to Continue

By Mahendra Pratap Singh Managing Director SPF Realty

he real estate picture for Dubai in the year 2015 is expected to be of a gradual growth, maintaining a healthy competition in the market. The sector will witness increased demand for housing properties, as the market continues its solid growth due to the improved confidence of the buyers. It will continue the momentum – both in rental and freehold sales – carrying on from the UAE’s historic win of the World Expo 2020 bid for Dubai. A number of developers, who were absent during the crisis period, are coming back in to the market. Major developers are continuing to release new inventories for larger brokers like us to expand the market and investor base – which has been working really well. People from different parts of the world are moving to Dubai now, and new projects are coming up all over the city; coupled with the investors’ confidence returning to placing their funds in Dubai. Property buyers, who have seen the market evolve over a decade, have also become more educated, matured and responsible. They now buy properties from the established developers and those who have a reputation in the market. But, the property market in Dubai has moved to a very responsible regulatory regime. Now, a developer cannot sell ‘artist’s

impressions’ – unless he’s paid fully for the land acquisition, received all necessary building permits, opened an escrow account, among other formalities. The Real Estate regulatory Agency (RERA) is very strict on all these issues and violators are being fined. Real estate brokers, guided by the RERA rules, know what they can do and can’t do. These developments have made Dubai’s real estate market more stable, responsible and matured. With the Expo 2020 hype coming to a more realistic level, we have seen the market stabilise. In some cases the prices have come down to a more rational level. The luxury property segment is expected to see a surge in the new year, especially since many people believe that home prices will continue to rise and therefore the homes they purchase now will be worth more in future – making the real estate again a ‘safe’ investment option. The consistency of increasing property value is the main determining factor of investments in luxury properties. This attracts sound prices during resale as the steep pricing of the properties and its exclusive nature attract

investors from different parts of the world. The luxury properties also fetch huge returns, especially those villas that can boast rare features matching global standards and exclusivity in terms of community lifestyle, location and connectivity. The trend continues as buyers are investing in properties from the developers they trust on. The timetested people, who have cruised through the recession are the clear favourites. This supports good players with solid track record of delivery, by eliminating irresponsible developers and strengthening the market. The residential real estate market will continue to grow in Dubai while commercial freehold property might remain under pressure due to access inventory. However, developers who are focusing on delivery and quality products will be clear winners. The off-plan sales will continue to rise in the market, aided by more stringent regulations imposed by RERA on investments into Escrow. Affordable housing is a potential growth area, especially after the strong recovery of the global real estate industry in the postcrisis era. Affordable housing has turned into a lucrative segment catering to the needs of the low and middle-income group. As the economy picks up and population growth continues, developing low-cost housing will widen options for people. This will also contribute to the diversification of the economy. When it comes to the rental market in 2015, rents and property prices should grow in accordance with the

growth of the economy. If it grows at 5%, the rental market should not show a 50% jump. No matter what happens, Dubai’s real estate market will not witness the bull run of the 2006-2008 period. It happened due to lack of regulation, access liquidity and irresponsible lending. I don’t think any responsible businessman would want that. Going forward, as the market matures further – developers, who could offer better financial options and strike good mortgage deals with banks for their projects, will dominate the market – as most families with household incomes in excess of Dhs25,000 to Dhs30,000 could move into their freehold homes – by putting their rents into mortgage payment. For example, with Dhs7,000-Dhs10,000 per month installment – which could be higher than their monthly rents – if a family could move into their freehold homes, they would be more inclined to do that now, than before – simply due to the fact that there is more clarity on the property sector and the buyers now can differentiate between the good and ‘not so good’ developers. It is expected a great year for Dubai realty to grow and achieve significantly. However, we are realistic about the prospects and we plan sensibly. We see immense of opportunities, whatever the situation is. The key for growth is to make sure that we stay closer to our customers and providing them good value for their investment. As far as we continuously improve our own performance in the market, we will achieve growth.g Gulf Property

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Dubai Well Set for Growth

By Niall McLaughlin Senior Vice President Damac Properties

he Dubai real estate market has recovered, and stabilised over the past couple of years to elevate it to one of the top property investment markets in the world. A recent report compiled by Cushman and Wakefield pointed to the fact that recent price growth in the market has seen Dubai jump from 186th place, to 39th worldwide in the space of a year. Prices have jumped between 20%-30% over the past twelve months as Dubai again becomes one of the most attractive, and safe real estate investment markets in the world. In recent months prices have started to find their level, based on current market demand, and the stability and security is offering increased confidence on a global scale. For the year ahead, the property market across the emirate will be on a big ‘build’ phase. Throughout 2014 many developers, including ourselves, launched large scale luxury developments which are on a three to five year build plan. As these developments work their way through the construction phase, you are going to see the first real completions and handover of units coming up towards the end of 2015. Even with the new handover of apartments and villas into the market, we see continued demand. Dubai is growing and growing fast.

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The population sits just over 2.3 million people; a figure which is expected to grow at a rate of 5% a year or in simple terms, an additional 115,000 residents to Dubai in 2015. They will all need a place to live. Based on current announcements, developers are constructing around 42,000 new units over the next two to three years according to consultants JLL. This will clearly not be enough capacity to house all of the new people coming to Dubai, even when you factor in a percentage that may decide to leave. Add to this the growth in tourism in the coming years – Dubai is set to add on average an additional two million more tourists per year in the lead up to 2020 and you can see why there remains a high level of confidence in the condition of the Dubai real estate market. These market dynamics will also drive the rental market. While some of the more established areas are driving a good yield or return to the owners of the units, there are many areas which are now opening up and becoming more accessible. Areas such as Jumeirah Village and Int’l Media Production Zone are

seeing some of the biggest percentage price rises in Dubai, as infrastructure – roads, shops, restaurants and communal facilities – open up. Families are moving to these new areas to benefit from attractive pricing and accessibility. Supply and demand in a free market economy should be welcomed and rental yield pricing will always be determined by availability and the price someone is prepared to pay. The RERA rental calculator has made a great deal of difference in recent years to ensure that prices of units does not exceed an acceptable price, and many tenants are now renewing year after year, which is testament to the success of its introduction and enforcement. Likewise, the implementation of Ejari contracts and mediation has also provided a clear, fair and efficient system by which tenants and landlords can resolve any disputes amicably. As these new developments come on-line there will be a requirement for more low-cost housing to support Dubai’s growth. While we recognise a need to see a wide mix of housing availability across the emirate, we intend to continue our company focus in this area. Dubai is well set. New regulations, strong government backing, an ideal geographical position linking the east and west set within a secure, peaceful and thriving entrepreneurial environment. The real estate market will continue to drive the sentiment in Dubai, and with strong leadership and vision, the emirate is set for many more years of substantive growth.g

Hold on to your Assets

By Mahdi Amjad Executive Chairman and Chief Executive Officer Omniyat Group

ver the past couple of years we have seen the real estate market in Dubai go through short cyclical patterns. If anything, it is a sign of maturity when the market tends to self-correct when prices increase quickly or when supply in certain locations exceed demand. I have always said that real estate is a long term investment. The overall price trend in Dubai has been heading in the right direction since 2009. After all, Dubai has all the essential components for a strong economy, whether it’s tourism, trade, logistics, tax-free environment and above all central geographic location between East and West. In my opinion, Dubai will remain the focal point for the +3 billion population and will continue to attract buyers for years to come. We are great believers in Dubai and in the potential of the real estate sector in particular and therefore we are growing our portfolio to exceed Dhs12 billion by 2015 and plan to double it in the five years to follow. Thankfully, tenants have far more options in Dubai than they ever did before and they can select from several communities and master plans that are spread around Dubai. The Dubai road infrastructure, along with the metro and

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Correction to Continue

By Talal Al Gaddah Chief Executive Officer MAG Property Development

most recently the tram, makes commuting easier than ever before. When rent increases in certain locations in Dubai, it creates new opportunities in more affordable communities. People have choices here. Ultimately, the tenants decide where they want to live and how much they are willing to spend. When market picks up, everyone benefits. Many industries in Dubai are dependent on the real estate industry and we are very optimistic that the sector will continue to grow and contribute to the city’s economy. End users have the ultimate say in the market. Sellers can demand any price, but can only sell at the price set by the end user. Recent studies have identified Dubai as one of the top 10 destination in the world in attracting real estate investors. If you compare the real estate pricing in Dubai to the other 9 cities, you will realise that we still have a long way to go. So my tip to end-users is: don’t get concerned if the market temporarily slows down. Hold on to your assets because in Dubai generally, there is one way to go up. g

ver the next two years, the market will be correcting itself after the increase in prices that it has witnessed recently. The main character of real estate business in this time is one of ready products. Only a handful of off-plan projects will be completed and delivered from next year to the end of 2016, meaning that there won’t be a significant number of apartments delivered onto the market up to this point. This shortage will be positive for large developers, as it means they won’t have a great deal of competition. However, construction has recently picked up, with a raft of new projects launched that will be completed in 3-5 years’ time. These will bring new units onto the market which will balance out the increasing demand expected as we head ever closer to Expo 2020. The new real estate developments being planned and commenced are catering for all sectors, residential, commercial, industrial, logistical and tourist in order to help the city to be fully prepared for the major international event in just over five years’ time. In short, rental prices will continue to rise but will match the market and be commensurate with Dubai’s GDP. In the rental market, it is true that some landlords are increasing their rents, how-

ever this might lead to positive consequences in that it will encourage people to start looking into buying property as a long term investment as opposed to spending their earnings on rent. This will benefit property developers as it will result in an increase in sales. Landlords should think of how they should keep their properties occupied not vacant. However because of the high demand and because of the decreased number of apartments coming on to the market they have the luxury of increasing their prices. People in Dubai looking to rent do have options. There are still many areas in the city where people can find very good prices, but they will need to compromise with the location. As mentioned earlier, Dubai’s fastgrowing real estate market is likely to enjoy sustainable growth in 2015. The number of significant and smaller projects launched during 2014 will maintain the supply of the various categories of unit in harmony with the demand, meaning that the market will hold its momentum over the forthcoming years. This will influence the behaviour of landlords, with supply and demand market

mechanisms controlling price trends and cancelling the long bullish wave of rapid and high hikes of prices, both in the rental and investment markets. When market picks up, developers and brokers benefit but the end-users suffer – sometimes to the extent that the property prices them out. While that is true, there are other economic factors that accompany a buoyant property sector that mitigate against pricing people out of the market completely. The overall economy tends to show and improvement with salaries increasing to match rising costs of living. That has been the trend over the past couple of years. A survey by finance organisation Mercer found that the UAE is bucking the trend for limited pay rises and last year gave their employees average wage increases of 5.2%, with a similar predicted for this year. Pay increases help absorb rental price rises. I am a strong advocate for low-cost housing in Dubai. Dubai is developing more and more established as city where people build a life, pursue their careers and raise families. It is less being seen as a destination characterised by a highly transient population. We should encourage the people who move here and are investing their time, their life and their money in this city to stay. Housing should be tailored to the mid-level population. I definitely support this. The only obstacle that property developers face for low-cost housing in Dubai is the high cost of land in the emirate. g Gulf Property

INTERVIEW

Tilal City: Dh2bn worth first freehold project in Sharjah

By Paromita Dey Senior Reporter

few months back, owning a property in Sharjah might have sounded like a distant dream for expats. But now it is possible. And if you ask how it is possible, then the first name that comes to mind, is Tilal City. The master planned community in Sharjah claims to provide an opportunity to live,

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work and play in an urban environment, where buyers can build their own homes. As the government continues to ease restrictions on foreign ownership, developers are increasingly turning their attention to gated communities in an effort to match the developments seen in Dubai, according to the Sharjah Winter Residential Market Outlook 2014 by real estate advisory firm Cluttons. The emergence of such freehold schemes will pave the way for investors looking to enter a market where av-

erage home values are roughly two-thirds lower than that in Dubai. However, without a proven track record, development financing is likely to remain challenging, at least in the near term. While the current proposed 20% ceiling on the volume of sales to non-Arabs per scheme will help to curtail the exponential growth seen in Dubai and Abu Dhabi, it will also limit the marketâ&#x20AC;&#x2122;s exposure to an extent as this ruling is likely to translate into a slow, but steady rate of deals.

In response to the growing demand in the market and in a first for Sharjah, the newly formed Tilal Properties has released residential and commercial land plots in its new master planned community on the Airport Road. The landmark community will for the first time allow non-Arab nationals to purchase land in the Emirate. Tilal Properties, the new joint venture between Sharjah Asset Management and Eskan Real Estate Development, launched Tilal City in November, at an event, at-

INTERVIEW

An artist’s impression of the aerial view of Tilal City

tended by H E Sheikh Sultan bin Ahmed Al Qasimi, Chairman of Tilal Properties, as well as more than 300 VIP guests. One of the partners, the Sharjah Asset Management is the investment arm of the Government of Sharjah. It is domiciled in Sharjah and is responsible for all asset management and investment activities of the government. The other partner, established in March 2007, Eskan Real Estate Development assists the bank’s business divisions, subsidiaries and

associates in developing social and affordable housing, community and commercial and tourist developments. The soft launch offered the attendees an opportunity to view the plans for the new sustainable, mixed-use community and register their interest in purchasing land plots for development. Tilal City is the first development project of Tilal Properties joint venture and will be delivered in partnership with the following organisations. Speaking at the event, H E Sheikh Sultan said Tilal

Properties, through the launch of its new city, seeks “to keep pace with the intellectual and urban development witnessed by Sharjah.” He clarified that, “Tilal City is one of a series of projects that will be implemented by Tilal Properties” and it will allow UAE residents to buy properties on a 100-year leasehold basis, according to the laws regulating Sharjah’s property market. The Sharjah Executive Council has recently issued Resolution No. 26 of 2014, which, for the first time, will

allow foreign investors the right to own properties in Sharjah for up to 100 years. This resolution is expected to stimulate investment in the Emirate. “Tilal City is a freehold project for the Arabs who are residents of the UAE and a leasehold project to all other nationalities, for 100 years, with terms and conditions stated in the legislative law. With almost 2000 residential plots, open parks, shops, offices, education and community facilities, the community will be an ideal place for resGulf Property

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“The Sharjah Executive Council has recently issued Resolution No. 26 of 2014, which, for the first time, will allow foreign investors the right to own properties in Sharjah for up to 100 years. This resolution is expected to stimulate investment in the Emirate. Tilal City is a freehold project for the Arabs who are residents of the UAE, and a leasehold project for all other nationalities for 100 years, according to the terms and conditions stated in the law. With almost 2000 residential plots, offices, open parks, hospitals and retail, the community will be an ideal place for its residents to call home.”

- Haysam Jaziri, Executive Director of Business Development, Tilal City

idents to call home,” said Haysam Jaziri, Executive Director of Business Development for Tilal City.

What will Tilal City have?

With a total development value of Dhs2 billion, Tilal City will comprise five distinct zones, Zones A, B, C, D and E. The project would occupy a total area of 25 million square feet, including 13 million square feet for sale and 12 million square feet of public facilities, roads and parks. Prices vary depending on the

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size of the plot, its position, usage, which zone it is in and the allocated build height that is permitted on the plot. All land will be sold on a ‘price per square foot’ basis for the plot area only and pricing ranges from Dhs110 per square feet to Dhs303 per square feet. The average price across all zones and land uses for the development is Dhs196 per square feet. Zone A will be occupying a location overlooking the central garden and will be connected to the whole development through public

corridors lined with shops, restaurants and cafes. The zone will have terraced apartments, retail units, parks and a mosque. Zone B is located at the north of the development, it comprises residential apartments, parks, a mosque and gyms. It is connected through a pedestrian network of green corridors and sikkas, and has retail on its periphery. Zone C is an exclusive community of residential villas containing 673 plots. It has been designed according to local and international

standards to provide a high quality lifestyle to its residents. There are two types of villas, detached and semi-attached villas, along with townhouses and community facilities and a mosque. Zone D is a harmonious mix of residential buildings, commercial and entertainment facilities, and offices under one roof so that people can live, work and be entertained all in one place. Last but not the least, Zone E is the commercial centre of the development with a shopping mall in the centre. With its prime location on the

INTERVIEW An artist’s impression of the residences in Tilal City

Emirates Road, this part of the development will not only be the central attraction of the project, but will also provide retail, lifestyle and entertainment facilities in the surrounding area. “We are the master developer or land developers, as we like to call ourselves. We would take care of all the infrastructure and hand over the land to the investors. They are free to choose what they want to build, as long as they follow architectural and general guidelines issued by the Sharjah Municipality,” clarified Jaziri.

He also added that all the residential developments will be sustainable and green, since the permissible height of the residences is maximum G+1 to G+5. Each residence will have their own parking, according to the guidelines of the regulatory bodies. The master developer is also in talks with renowned hospitals in the UAE and as Jaziri, mentions, they have received a fantastic response from the hospitals for probable tie-ups. The city is strategically located on Emirates Road, close to Al Dhaid

interchange, just 10 kilometres from Sharjah’s International Airport and within convenient commuting distance to nearby Emirates. “The current status of the project is that Zone A, C and E will be delivered in 2016 and Zones B and D will be delivered in 2017. We have already started our grading work on the land two months back,” said Jaziri. Cluttons, the global real estate agent, is the exclusive marketing and sales partner of Tilal City. “We had a fantastic response to the project. We had the VIP launch

At A Glance

Dhs2 billion

total development value of Tilal City

Dhs110/sq ft

starting value of the land in per square feet in the city

5 zones

The Tilal City project would be divided into five zones, namely A, B, C, D and E, with 2000 plots Gulf Property

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The VIP launch of Tilal City at Al Jawaher Convention Centre in Sharjah in November

of the project last month and since then, we have been overwhelmed by the response. Investors have the confidence in the partners and not too many people would be disappointed with the end product,” claimed Suzanne Eveleigh, Directorproperty management from Cluttons.

How can a buyer own a house?

The payment plan, as claimed by Jaziri, is very lucrative and is divided into easy instalments over a period of time. “We are not offering any type of finances to our buyers, but we recommend Sharjah Islamic Bank for easy financing and loans,” he stated.

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The payment phasing is different depending on whether the buyer is purchasing a land in Zones A and C or Zones B and D. For Zones A and C, 10% reservation payable has to be done immediately, 15% upon signing the Sales and Purchase Agreement (SPA) and 15% in six months after the SPA have been signed. The remaining payment can be done in 3 installments of 20% each, with the third installment payable upon handover. For Zones B and D, a 10% fees reservation payable to be done immediately, 15% upon signing the SPA and 15% in six months after the SPA have been signed. The remaining 60% can be divided into 4 installments of 10% each and the remaining

20% on handover. “We are the only ones today in Sharjah who are making such projects with all the requirements in place. What makes us special is we take care of our smaller investors also, who want to own a piece of land and build on it. We allow all types of people from the society a chance of investment,” mentioned Jaziri. He also added that as a land developer, buyers will be provided with all probable facilities, good roads, electricity and water, communications facilities. “Every possible infrastructure facility will be ready before the handover. Electricity will be connected as soon as the building is complete. This is a promise we make along with the payment.”

Outlook for the Sharjah market

Looking forward, Cluttons has forecasted that while reverse migration from Dubai has no doubt fuelled overall tenant demand, requirements for Sharjah’s rapidly expanding Air Arabia has put pressure on the limited supply of villas, particularly at the higher end of the market. Furthermore, with the strong growth in Dubai’s hospitality and food and beverage sectors, several businesses have singled out Sharjah as an affordable alternative to Dubai for bulk staff housing. This will inevitably catalyse increased competition for the Emirate’s restricted apartment stock, particularly in the near term.

FOCUS An artist’s impression of a villa in Zone C of Tilal City

Rents in Sharjah will continue to rise as a result of tenant demand for three key reasons: The diversification of Sharjah’s economy; reverse migration from neighbouring emirates and international companies present in the UAE targeting Sharjah for bulk staff housing requirements. “We currently see a lot more activity from the business services, industrial, shipping and logistics sectors and we also anticipate further growth through increased hospitality, tourism, and leisure across the UAE. With tenants previously attracted by falling rents there now seeking more affordable accommodation in Sharjah,” said Steve Morgan, CEO of Cluttons in the Middle East, at the launch event. Morgan also mentioned

that commercial property markets will continue to grow as a result of Sharjah’s rapidly expanding SME sector. “I believe that Sharjah is now home to over 45,000 SMEs and we expect this will continue to grow. There is also a distinct lack of grade A office space at present, which will remain in high demand. These are just some of the reasons why I believe Tilal City is an excellent choice for investors as well as those looking for a family home.”

Way forward for Tilal Properties

The current scenario of the Sharjah real estate market is vibrant, developers are looking to invest in quality projects in the emirate, but Jaziri said that, for them, at the moment, Tilal City holds the ut-

most importance, since it is their first flagship project. The company will be only looking at new developments after the successful completion of the ongoing one. Jaziri also added that the company will soon have plans to expand their base to other emirates, but only after the successful delivery of Tilal City. As of now, the company does not have any plans to raise money from a stock market or launch an IPO,, unlike other well known developers in the UAE real estate market “We have quite a lot of landbanks all across the Emirate (Sharjah), we also have plans to develop it soon, but only when Tilal City is successfully completed and handed over to our buyers,” Jaziri mentioned. g

“We all realise the importance of the real estate sector, which greatly contributes to the GDP and economic growth in general. Through the launch of Tilal City, we seek to keep pace with the intellectual and urban development witnessed by Sharjah. It is one in the series of projects that will be implemented by Tilal Properties over a period of time.”

- Sheikh Sultan bin Ahmed Al Qasimi, Chairman, Tilal Properties

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INDIANREALTY

Indian realtors eager to gain big from NRIs’ money

Gulf Property Exclusive

he number of Indian property developers setting up sales and marketing offices in Dubai has jumped manifolds over the last few years. Advertisements by leading Indian developers in the UAE media is gradually outshining those released by the UAE developers in certain cases, so much so that some of them are wrapping the cover pages of the leading newspapers that reflects

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their financial strength as well as their desperation to woo the Indian expatriates to invest in Indian property. The number of exhibition showcasing Indian real estate has also grown manifold in the UAE with the bulk of them being held in Dubai, obviously targetting the NonResident Indians (NRIs). Three back-to-back exhibitions were held in Dubai over a period of just one month, all focussing the Indian real estate and obviously targetting the Indian expatriates. One would wonder why is this sudden rush? “Over the last two years, India has been battling vari-

ous economic issues such as rising fiscal deficit, a falling rupee and increasing food inflation which have adversely hit the performance of the real estate sector of the country. We have already seen overall sales of residential and commercial real estate in India dwindling across major cities. While the residential market did show some signs of recovery in 2012 and H1 2013, there was a sudden drop in new launches and absorption from the second half of 2013 onwards,” Shishir Baijal, Chairman and Managing Director of Knight Frank India, said in a recent report.

“A slowing economy, rising interest rates by banks, high inflation and the weak rupee, among others, contributed towards building a negative sentiment among home buyers that resulted in dwindling sales volumes within the residential market. “In the residential sector, the year 2014 is expected to clock an absorption of more than 272,000 units which is marginally lower than 2013. Even though the first half of 2014 experienced a high degrowth of 27% as compared to same period last year, the second half of the current calendar year will show a sign of revival.”

At A Glance

$180 billion

value of Indian real estate estimated to reach by 2020

$1 trillion

value of on-going investment in Indian infrastructure

$23.5 billion value of foreign direct investment in Indian development in 2000-14

$1.16 billion

allocated to build 100 smart cities across India

An increasing number of Indian developers are openings offices in Dubai to tap the NRIs

“The office markets of the top six cities have shown a similar trend. However, with an expected strong revival in the second half of the year, absorption in 2014 will be 36.5 million square feet, which is an 8% growth over last year. The new completions will also a positive growth during July to December 2014 but the magnitude will be lesser than that in absorption. This hints towards an overall better office market scenario by the end of 2014.” The incentives announced for the housing sector in the Union Budget and all the subsequent decisions taken

by the new government seems to be reflecting their intention towards getting the economy back on the growth path, he said. “Sentiments of homebuyers too, seem to have changed for the better as the gap between demand and supply has been narrowing gradually over the last year, and this trend is expected to continue in the next six months on the back of a strong recovery in sales volume,” he added. The crowd in these exhibitions speaks for themselves. The hard bargain between the buyers and sellers and the interest among the in-

vestors are a testimony of the opportunities in Indian real estate. “Things are quiet in India, especially in the real estate front, which is forcing the developers to look at overseas markets to sell their properties and fund the construction,” Sunil Jaiswal, President of Sumansa Exhibitions, organisers of Indian Property Show, tells Gulf Property in an interview right after the opening of the 15th edition of the exhibition where 170 Indian property developers have showcased 45,000 projects to woo the NRI investors. “Besides, the favourable dollar-rupee and dirhamrupee exchange rate is also influencing the NRIs to invest in Indian real estate – where the investor not only gets a higher value per dollar or dirham, but also benefit from the price appreciation.” In the UAE’s mainstream English newspapers, Indian developers are currently occupying more advertising space than the amount of

INDIANREALTY space booked by local developers. The residential markets of the top six cities in India, namely Mumbai, National Capital Region (NCR), Bangalore, Pune, Chennai and Hyderabad, have been witnessing extreme volatility in terms of demand and supply over the last two years, Knight Frank said in its report. “While the residential market showed signs of recovery in 2012 and H1 2013, there was a sudden drop in new launches and absorption from H2 2013 onwards. Factors like a slowing economic growth, rising interest rates by banks, high inflation and the weak rupee, among others, contributed towards building a negative sentiment among home buyers and resulting in a dwindling sales volume,” the report said. “While new launches fell by 32% in H1 2014 compared to H1 2013, the sales volume dropped by 27% during the same period. All the cities witnessed a steep fall in absorption, in the range of 14% - 37% during H1 2014, with the Bangalore and NCR markets falling by the lowest and highest rates, respectively.” Umang Badjatya, General Manager of Pune-based Kumar Properties, said his company is also contemplating setting up a regional office in Dubai to tap the NRI investors. “Although we are quite a large developer, we have not had any presence in Dubai or the Middle East where a large number of Indian expatriates live and work,” he said. “However, we will be looking at a strong presence in the Gulf region in future as we see a strong interest amongst the NRIs in investing in primary and secondary homes.” Another developer, SunGulf Property

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The Indian Property Show held at Dubai World Trade Centre this year

teck Realty has opened up its office in Dubai for the same. “With a portfolio of over 25 million square feet delivered till today, Sunteck has always been committed to luxury and reliability across all our ventures which is reflected through our associations with brands like Vertu for exclusive concierge services, Disney for designer children spaces and The Charcoal Project, founded by Suzanne Khan,” said Kamal Khetan, Chairman and Managing Director, Sunteck Realty. “The UAE offers a mature market for high end luxury investments that demands quality, timely delivery, trans-

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parency and corporate governance within its investment options, making it an obvious choice for Sunteck Realty to venture into,” he added. Sumansa said, it had expected Rs7 billion (Dhs406.66 million) worth of property purchase to take at the three-day event. “An estimated $1 trillion is being spent on infrastructure over the five years to 2017 and there is increased investment in industrial projects by the government. But it is the private housing sector that the PwC report highlights as a key growth area,” Jaiswal says. “The Indian real estate sector continues to be a

favoured destination for global investors. The urban population will surge in the coming years, which, coupled with growth in employment, education and health care, will push the demand for residential and commercial space. “As such NRIs are still in a very favourable position as they can leverage the power of weak rupee to invest for better returns and go for higher value transactions. For an NRI, Indian property is certainly more affordable now.” Housing industry in India has emerged as the most vibrant and dynamic sector for the country’s economy as

well as real-estate industry, he quipped. Indian economy is expected to grow at 5.5% annually and this growth rate is expected to reach 8% in next 3 years. In addition, there is a shortage of over 20 million homes in India which will create robust demand for housing over next 10 to 15 years. India is bound to outperform many markets around the world in terms of return on investment. “Evidently, property investment has given maximum return in the last 3-4 years. Huge gap between demand and supply of organised real estate developments has been one of the major rea-

Indian real estate project value hits $234bn

he total value of under-construction real estate in India grew at a compounded annualised growth rate (CAGR) of 32% from $101 billion in 2010 to US$234 billion in 2013, according to a latest report by Jones Lang LaSalle (JLL). This significant growth in the value of under-construction real estate in India was primarily led by the residential sector, which grew at 42% CAGR during the last three years. The residential sector’s value as of 4Q 2013 stood at US$191 billion, and it accounts for more than 80% of the total value of under-construction real estate in India. This sector accounts for similar proportions in almost all leading cities of India (except Hyderabad and Kolkata). Three years back, the residential sector accounted for

sons for the same. Under construction projects have yielded high returns. For many NRIs, property is and should be the primary choice of investment,” Nishant Singhal, Director Strategy and International Operations at Investors Clinic, said. “Developers will be offering attractive payment plans and freebies during the Indian Property Show whereas buyers can expect discounts ranging from 3-5% during the exhibition,” Nishant added. The Indian real estate market is expected to touch US$180 billion by 2020. The Union Budget 2014-15 has laid considerable emphasis on the real estate

sector and this has infused a positive sentiment for the future, a latest survey found. Although the current sentiment score merely breached the 50 mark in Q2 2014 (April – June), results for this quarter (July – September) has risen to 63 which is attributable to the stakeholders' positive perception regarding the economy, residential sales and price appreciation compared to six months back,” said the Q3 Real Estate Sentiment Index, released recently. The future sentiment score of the developers has surged to 73 in Q3 2014, up by 4 points from the previous quarter.

only a 66% share of the total value. This clearly reflects the shift in focus of developers over the last three years toward the housing market as business sentiment weakened. A widespread slowdown in economic activity on one hand and an inherent demand-supply gap in housing on the other forced developers to focus their activity on the residential sector in the last few years. The top seven cities in India – NCR-Delhi, Mumbai, Bangalore, Chennai, Pune, Hyderabad and Kolkata – account for more than 80% of the total value of panIndia under-construction real estate. Delhi has the highest concentration of under construction real estate value of 33% of the total pan-India region. The relatively large residential and retail sectors make Delhi the leading contributor in value proposition. Mumbai has the second largest share in total real estate value in the country, although it has a increasingly dominant share of the office market. g “In case of residential sector, the festive season has not brought in the expected cheer to the real estate sector, with markets reporting “not so-encouraging” sales over the past two weeks,” it said. “Unlike the boom years, stakeholders this year had resisted the temptation to launch new projects in the season, focusing instead on reducing the inventory that has piled up over the past few quarters. Markets like NCR and Mumbai have not even seen regular investments coming their way and seem to be waiting for the new government to execute reforms which may help im-

INDIANREALTY prove the situation. “Keeping in view the current situation we expect at least 6-8 months before actual transactions begin picking up. Though stakeholders are hopeful that this will change before the said time period, but if the current signs in the market are anything to go by, it’s still a long way ahead.”

Market size

Recent years have seen the Indian real estate sector grow, especially the commercial real estate segment. According to a study by Knight Frank, Mumbai is the best city in India for commercial real estate investment, with returns of 12-19% likely in the next five years. Bangalore and Delhi-National Capital Region (NCR) come second and third on the list, with returns of 12% and 8-11% respectively. Delhi-NCR was the biggest office market in India with 110 million square feet, out of which 88 million square feet were occupied. The residential segment of real estate has also seen tremendous growth in recent years owing to the continuous growth in population, migration towards urban areas, ample job opportunities in service sectors, growing income levels, rise in nuclear families and easy availability of finance. In the residential segment, the number of new launches in the first quarter of 2014 has increased by 43% at 55,000 units across eight major cities. Bangalore recorded the largest number of units launched, an increase of 22% at 16,838 units, followed by Mumbai and Chennai with new launches at 10,698 units and 7,436 units with a growth Gulf Property

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rate of 93% and 19% respectively, during the first quarter.

Investments

With the government allowing 100% foreign direct investment (FDI) in this sector, the number of foreign firms owning real estate projects in India has also increased. The construction development sector, including townships, housing, built-up infrastructure and construction-development projects garnered total FDI worth US$23.58 billion in the period April 2000-June 2014. “The government’s announcement of easier FDI norms for the construction sector has generated a lot of excitement among the country’s real estate players – and

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justifiably so. The fact that 100% FDI will now be allowed under automatic route to invest in completed assets along with relaxation of other norms is expected to increase FDI inflows significantly,” said Ramesh Nair, COO – Business and International Director, JLL India. “The modification of the 3year lock-in period basically opens the portals wide for FDI funds who were deterred by this clause so far. It also means that there will be more pressure on developers to accelerate construction of projects being funded so that these funds can exit at a favourable time. “The elimination of the 3year lock-in period is definitely the most notable modification to the FDI pol-

icy. The annual real estate private equity market inflows, which stands at $1 to $1.5 billion per annum over the last few years, could double in the next two years due to this announcement. “Investors will now be permitted to exit either on completion of the project, or after the completion of support infrastructure in the project such as internal and approach roads, water supply, street lights, sewerage, etc. This new exit feature correctly assumes that the successful deployment of such infrastructure is a major landmark point in a project’s life cycle, post which all other development will happen assuredly and according to stipulated timelines.” With the rise in demand for

office as well as residential space, the Indian real estate sector has witnessed high growth in recent times. Some of the major investments in the real estate sector in the recent past are as follows: Piramal Fund Management has launched the Indiareit Apartment Fund which seeks to buy residential apartments in the Tier I market, and has kept aside a corpus of Rs 350 crores (US$57.86 million) for the same. US-based PE company Blackstone plans to step up its presence in the residential segment and has lined up about Rs1,000 crore (US$165.32 million) to invest in residential projects across Indian metros. Its first investment in the residential sector was in the Chennai project of

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Green buildings

India ranks third for the most Leadership in Energy and Environmental Design (LEED)-certified space globally, with nearly 12 million square metres. The Indian Green Building Council (IGBC) has joined hands with the US Green Building Council (USGBC) to strengthen their association for the next 10 years to focus on areas of knowledge exchange and work on the green building movement in India. The USGBC also plans to expand its support for LEED in India.

Road ahead

Bangalore-based Ozone Group. Donald Trump plans to extend his company, Trump Organisation's global footprint into India and invest in two realty deals. Both the deals involve ultra-premium luxury projects, which will be owned, developed and promoted by local developers. Mahindra Group has entered into affordable housing through its property development arm Mahindra Lifespaces (MLDL). MLDL plans to launch two housing projects in Boisar near Mumbai and Avadi in Chennai with the newly created business vertical Happinest. Canada-based Brookfield Property has entered into an agreement to acquire Candor Investments, a sub-

sidiary of Unitech Corporate Park (UCP), for about Rs2,000 crores (US$330.66 million).

Government initiatives

The Government of India has announced a host of measures to spur the real estate sector, which include an allocation of Rs7,060 crores (US$1.16 billion) for the development of 100 smart cities, a reduction in the size of projects eligible for FDI from 50,000 square metres to 20,000 square metres, and having the minimum investment limit for FDI to US$5 million. A committee on Streamlining Approval Procedure for

Real Estate Projects (SAPREP) was constituted by the Ministry of Housing and Urban Poverty Alleviation (MHUPA) to streamline the process of seeking clearances for real estate projects. The governments of different states from the country have also taken various measures to facilitate the growth of real estate sector. For instance, the Punjab government has proposed to exempt residents having houses with an area of up to 125 square yards from paying the levy and delink tax payment from collector rates. It has also proposed to keep the vacant plots out of the ambit of property tax which will be implemented during the course of 2014-15.

The Indian real estate sector continues to be a favoured sector for investments from international as well as private investors. In the upcoming years, the residential as well as commercial segments of the Indian real estate industry is set for major growth, aided in no small part, by the Modi government's plans and initiatives to boost this sector. Excise duty reduction on cement and steel will lower project costs. Expansion of the interest subsidy on loans will boost developers' interest in this segment. Moreover, tax measures such as increasing the limit of interest deduction on home loans will provide necessary motivation to consumers to increase buying activity and revive demand in the value and affordable segment. Further, demand for space from sectors such as education and healthcare has opened up ample opportunities for the developers in the Indian real estate sector. g Gulf Property

Numerous realtors do solid business at IPS INDIANREALTY

Bollywood star Arbaaz Khan (centre) inaugurating the Indian Property Show at the Dubai World Trade Centre on December 11. Sunil Jaiswal, President of Sumansa Exhibitions, the organiser of the show, is seen standing beside him (left)

By Indrajit Sen Senior Reporter

t was more of a typical Indian ‘mela’: Buyers roaming from stall to stall and sellers attracting them with hot deals on properties back home. Indian real estate developers find the GCC, particularly Dubai, as a very lucrative market to pitch their products to investors here. And with plenty of new developers wanting a share of the UAE market, the Indian Property

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Show (IPS) is becoming bigger with each new edition. The 15th edition of the Indian Property Show that took place between December 11-13 at the Dubai World Trade Centre, displayed mega projects from the Indian market. Over 170 developers from all major cities of India participated in the exhibition that welcomed about 18,000 visitors. Showcasing apartments, villas, row houses, commercial spaces and plots ranging from INR1.2 million to INR230 million (Dhs70,000 - 13.38 million), the show offered the

variety and volume of the Indian real estate market. Prominent developers showcased their grand projects in multiple cities like Delhi and NCR, Mumbai, Navi Mumbai, Bangalore, Chennai, Hyderabad, Jaipur, Kolkata, Goa, Ahmedabad and Pune and many more cities. “An estimated US$1 trillion is being spent on infrastructure over the five years to 2017 and there is increased investment in industrial projects by the government. But it is the private housing sector that the PwC report high-

lights as a key growth area. The Indian real estate sector continues to be a favoured destination for global investors. The urban population will surge in the coming years, which, coupled with growth in employment, education and health care, will push the demand for residential and commercial space,” said Sunil Jaiswal, President, Sumansa Exhibitions, organisers of the show. “As such NRIs are still in a very favourable position as they can leverage the power of weak rupee to invest for better returns and go for

higher value transactions. For an NRI, Indian property is certainly more affordable now,” he said. Visitors at the Indian Property Show were also offered to get free legal advice from top Indian lawyers on any of their property-related matters such as new property purchases, concerns related to existing property, tenancy laws, etc. The exhibitors at the show brought together the best of the Indian realtors, construction companies, banks and real estate agents. This year’s show witnessed 4 distinct regional pavilions.

Mantri Developers

Bangalore-based Mantri Developers has recently launched a string of projects in their stronghold, which they were promoting at the Indian Property Show. Mantri Developers has been operating in the real estate sector for about 15 years and has already delivered about 30 projects in Bangalore. The largest mall in Bangalore and one of the largest in India, with an area of 1.7 million square feet and 260 retail outlets, the Mantri Square is among the developer’s prominent projects. “We are rated as among the top 10 developers in India,” Sanjeev Birani, International Sales Manager of Mantri Developers claimed. Apart from Bangalore, the realtor intends to expand its portfolio in the cities of Chennai, Hyderabad and Pune, he stated. Mantri Developers were seen marketing about 10 projects, mostly in Bangalore, during the exhibition. The builder expects to finish construction of all its projects by 2015 and has adopted a

phase-by-phase approach for delivery. One of the reasons for the meteoric rise of Bangalore’s property market is that it is one of the rare metropolitan cities in India, which offers homes at prices which are unimaginably low in metros like India’s financial capital Mumbai. “Our starting residential unit is a 2BHK and the price for that starts from INR1.2 million (Dhs69,460),” Birani said. Mantri Developers has been maintaining an office in Dubai for about a decade now. Besides Dubai, the developer has offices in Singapore and California state of the US, through which it tries to attract investments from expatriate Indians.

Unique Builders

Claiming to be the ‘number one’ developer in Rajasthan state of India, Unique Builders have around 50 projects in their portfolio. “We have completed 14 projects, works on 26 projects are going on presently, upcoming ones are around 9. We are present in every city in Rajasthan including Jaipur (state capital), Jodhpur, Kishangarh, etc,” a sales representative said during the Indian Property Show. Besides Rajasthan, the developer has projects in Mumbai and is coming up with ones in Delhi. Unique Builders were marketing their projects in Rajasthan, specifically those in Jaipur and Jodhpur. “In our projects in Jaipur, we have residential units ranging from INR1.5 million to INR 150 million (Dhs86,835 to Dhs8.66 million),” the sales official said. As for international sales, “We are having a branch of-

Bollywood star Arbaaz Khan charms IPS

rganisers of the Indian Property Show used the popularity of Bollywood actor and filmmaker Arbaaz Khan to promote the event and named him brand ambassador. Arbaaz has been associated with the previous edition of the Indian Property Show and this time too he was chosen to inaugurate the event at the Dubai World Trade Centre on December 11. In an exclusive interview to Gulf Property, Arbaaz said, “Being a brand ambassador for the Indian Property Show is a big honour for me. The first time was fantastic, this time I am having more fun.” The Bollywood star has been the face of the Indian Property Show for a while now. He opines, “The event has grown from the first

fice in Dubai, Hong Kong and Bangkok. We have been present in Dubai for the past 9 years,” the official said.

Sunteck Builders

Sunteck Builders was marketing their ambitious projects in Mumbai, during the Indian Property Show. One of the projects is ‘Signia High’ located off the Western Express Highway, an arterial road in Mumbai. “This is a limited edition project of 80 apartments, with 3 and 4BHKs ranging from 2500 square feet. The supplies of such kinds of apartments in

INDIANREALTY time, the response has been overwhelming. I am very sure that they have been successful in whatever they are doing. Hopefully I would like to associate myself again with the exhibition in the future.” When asked about his opinion about the Dubai market and if he would like to invest in future, Arbaaz said, “I haven’t got anything in Dubai, since I have too many friends here and family. But very soon, I would definitely contemplate to buy a property here. I think the Dubai market is growing, for a person like me, I should have invested long back but nonetheless there is still time. I would definitely think of investing in Dubai.” “For further investments, when you have money, you can think of investing in places that provides you better facilities, great value for money. Dubai is one of them, it is almost like a second home. If I contemplate of buying a property outside India, then Dubai becomes the first choice.” g a market like Mumbai are few,” a senior representative of the company said. One of their other projects, ‘Sunteck City’, is spread across a 23 acre land in Goregaon, Mumbai, Avenue 1 of the project has already been launched and Avenue 2 is due to be launched shortly, the senior official said. Given the expensive residential units that define the Mumbai market, the starting price for units in the project would be INR14 million (Dhs81 million). Besides projects in Mumbai, Sunteck Builders has projects in Nagpur and Goa as well. They also plan to launch projects in Jaipur soon. g Gulf Property

INTERVIEW

RAK Ceramics spends Dh250mn capex in 2014

Gulf Property Exclusive

AK Ceramics, the world’s top ceramics manufacturing conglomerate, has invested Dhs250 million in capital expenditure product enhancement and development, diversifying its product portfolio as well as strengthening its focus on core business, a top official said. The Ras Al Khaimah based public listed company was established by His Highness

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Sheikh Saud Bin Saqr Al Qasimi, Ruler of RAK and UAE’s Supreme Council Member. “We are in the process of reorganising the business in order to sharpen our focus on the core business and the company has already spent Dhs250 million in capital expenditure, continuing to invest in the latest technologies in order to differentiate ourselves from our competitors,” Abdallah Massaad, Chief Executive Officer of RAK Ceramics, told Gulf Property in an exclusive interview. The US$1 billion global conglomerate has been play-

ing a crucial role in reshaping the economy of Ras Al Khaimah since its inception in 1991. It is one of the best examples of a UAE national company that has become global. Specialising in high-quality ceramic wall and floor tiles, Gres Porcellanato, and sanitary ware, RAK Ceramics uses more than 8,000 production models, with new designs added almost every week to its portfolio. With a total production output of 117 million square metres per annum of ceramic and porcelain tiles, 4.6 million pieces of bathware and

24 million pieces of tableware spread in 15 manufacturing plant across six countries, its capacity is greater than the total annual consumption of ceramic tiles of most developed countries in the world. With a talent pool of 14,000 professionals, the group generated Dhs3.51 billion revenues in 2013 with net profits attributable to the shareholders reaching Dhs282 million, a 26% jump from the previous year’s profits of Dhs223 million. During the first nine months of the current year, the company reported rev-

INTERVIEW

Abdallah Massaad, CEO of RAK Ceramics

enues of Dhs2.48 billion. RAK Ceramics currently has overseas production plants in India, China, Bangladesh, Iran and Sudan. However, 70% of its global production is carried out in its flagship production facility in Ras Al Khaimah, of which about 80% is exported to 160 countries. In June 2014, investment group Samena Capital bought 30% stake from its founding shareholder that is expected to herald a new era in the company’s future journey. Subsequently, RAK Ceramics, which owns stake in a large number of conglom-

erates, have been offloading shares to exit the non-core business that is expected the company to focus on its core business. A value creation plan has been developed and is being implemented post acquisition. In the exclusive interview, he elaborated on the company’s overall new business strategy that will streamline its processes and help enhance profitability as it enters the new year. Excerpts:

Gulf Property: What is your current production capacity across all your production lines in the

UAE and outside? Abdallah Massaad: Our current output is 117 million square metres of tiles, 4.6 million pieces of bathware and 24 million pieces of tableware. About 70% of our products are manufactured in the UAE and about 80% of our UAE products are exported to 160 countries across the world. We have manufacturing plants in China, India, Iran, Sudan and Bangladesh.

How do you describe what you do? Just transform clay into ceramic tiles – or you bring beauty and

peace to millions of homes? In a way, we create the right environment and mood in millions of homes across the world. We not only produce ceramic tiles, but offer complete solutions for homes, hotels, restaurants, lobbies, offices and commercial complexes. Our product portfolio is now well diversified to match any interior requirements and to match any moods. So, we provide lifestyle, offer complete solutions, sell concepts that eases home environment. We are a trendsetter in our area of activity.

RAK Ceramics has been divesting shares in many of its subsidiaries, despite being profitable. Why is that? Our core activities are producing ceramic tiles, sanitaryware and tableware. However, over the years, we had undertaken new business ventures and partnered with others in diversifying our business. The management has taken a conscious decision to exit the less profitable noncore business activities that Gulf Property

INTERVIEW

RAK Ceramics offers numerous new designs every week that suit different needs and tastes

will help us to focus on our core business and the profitable non-core activities. This will make the company more agile and increase profitability and help us strengthen shareholder value. This is a new strategic direction for us as we embark on an exciting journey ahead of us.

One of your organisation’s key contributions was transforming the economy of Ras Al Khaimah into an industrial belt. Due to RAK Ceramics, a large number of associated industries have developed. How do you feel about this?

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We are particularly proud of our contribution in various sectors of UAE. The company had invested in a number of companies that made strong business sense at the time. However, now the company is going to sharpen its focus on its core business and going to reduce its involvement in the less profitable non-core industries. This is going to help strengthen the company’s top line revenue and bottom line profits, reduce risks and strengthen its shareholder value.

What steps are you taking

to strengthen your performance further? We are currently bringing new technology to offer innovative products that suits different tastes, moods and designs. Technology enables us to do so many things – including creating a better mix in products and services. RAK Ceramics are known in the market as a complete interiors solutions provider and with the new strategic direction, we are strengthening our position as a total solutions provider when it comes to our customer’s interiors needs. We want to strengthen the lifestyle concept area of our

business. With RAK Ceramics, a customer will have everything under one roof and doesn’t need to go anywhere else. We now offer total flooring, wall, bathroom and kitchen decor solutions based on designs, themes and moods. We are a one-stop shop for all home-owners’ needs. Also, we are focusing on hotels, restaurants and catering (Horeca) business to the hospitality and entertainment sectors. This, we see a key growth area for our fine tableware products. With so many hotels coming online for the World Expo 2020, we see the cutleries as a

INTERVIEW

At A Glance 14,000

people working for the company across the world

Dhs250 mn

capital investment by RAK Ceramics in 2014

117 million

square metres production capacity of RAK Ceramics

$1 billion annual turnover of RAK Ceramics

major growth driver for us.

In terms of products, what is new? Every week, we bring new designs to the production line to constantly improve the product offering and customer experience. This time, we have manufactured a 3 metre long tile – for the first time in our history. We are the only manufacturer in the region with the technology to make the 1.5m x 3m Maximus Mega Slab. We are also strengthening our 2015 collection including Wood Art Collection, Cement Collection, Stone art Collection and Metallic Collection

that are known for exquisite designs along with Elegance ceramics range of boutique tiles as well as our popular bathware offerings Resort, Opulence, Elena, Metropolitan, Harmony and Infinity.

How big is the UAE market and how much market share do you quote in the UAE? The UAE market size is of about 50 million square metres per annum that includes cheap ceramic tiles imported from other markets. When it comes to projects we have a 50% market share and we are well respected and a dominant brand in the

high-end market too.

What are your plans to expand in other markets? In terms of exports, we are constantly exploring new opportunities and increase exports to the existing markets, which are ongoing marketing initiatives.In terms of production, we have increased production in our plant in Bangladesh. We are also looking at increasing our production capacity in India.

Where do you want to take RAK Ceramics from where it is now? We obviously want to consolidate our global presence

and position the company much higher. In order to do that, we want the company to also strengthen its bottom line, while increasing the top line revenue. Without strengthening financial base, we obviously can’t invest in our future. This year, our capital expenditure is going to be in excess of Dhs250 million and we are able to invest it because we are a profitable company. In the next few years, our exit from the less profitable non-core businesses will help us to strengthen our focus on core operations and help us expand globally.g Gulf Property

NEWSUPDATE Brisk business at wasl’s first sales campaign for Hyatt Regency Creek Heights Residences

wasl sells Phase 1 of first freehold project

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asl Asset Mana g e m e n t Group, part of the Dubai Real Estate Corporation (DREC) is planning to roll out a large number of freehold projects in Dubai within the next few months. Meanwhile the first phase of its first freehold project, Creek Heights Residences, has been sold out at its recent launch, company officials said. “We are planning to roll out

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a number of freehold projects this year to expand our freehold portfolio,” Hesham Al Qassim, Chief Executive Officer of wasl Asset Management Group, told Gulf Property, in an exclusive interview. “These would include master-planned communities where thirdparty developers will get a chance to develop their own projects within our communities.” The government-owned company, which has more than 30,000 residential units, 5,000 industrial units and nine luxury hotels under management, had earlier announced its foray into the

freehold market to tap future opportunities in the real estate sector. The company, which is helping reshape Dubai’s residential, leisure, tourism, hospitality, industrial and retail landscape, has also embarked upon a roadmap to roll-out 19 hotels by 2020 to help meet the projected tourism demand when Dubai hosts the World Expo in 2020. “We have an ambitious roadmap for development that includes residential, commercial, tourism, hospitality and retail sectors, wherein we want to create a balanced portfolio of assets

that will not only make our business more sustainable, but also contribute to Dubai’s growing economy in a much healthier way,” Qassim said. Although wasl is going to promote freehold properties, it will always have a balanced portfolio between freehold and leasehold projects in its portfolio, Qassim stated. “This way, we can always put the unsold units into leasehold portfolio where we have a very strong asset management arm,” he said. Creek Heights Residences – which is being managed by Hyatt Regency – located on the Dubai Creek, marks

NEWSUPDATE

Zainab Mohammed, CEO of Property Management and Corporate Communication, wasl

Hesham Al Qassim, CEO of wasl Asset Management Group

“We are planning to roll out a number of freehold projects this year to expand our freehold portfolio. These would include master-planned communities where third-party developers will get a chance to develop their own projects within our communities...” – Hesham Al Qassim, CEO, wasl Asset Management Group wasl’s entry into Dubai’s freehold real estate sector for the first time. The project is ready for delivery and customers can move into their apartments immediately. The new project comprises two towers of luxury furnished apartments and a five-star hotel. The ready-to-move-in luxury development in ideal location by the Creek. wasl opened the door to prospective buyers for Hyatt Regency Creek Heights Residences’ apartments on December 15, 2014. Customers were able to purchase units from 9am until 7pm for apartments in the development. Business hap-

pened to be brisk, with the company making bulk sales to several investors. To ensure fair distribution for the country’s natural citizens, priority was given to UAE nationals. Hyatt Regency Creek Heights Residences is a 43floor residential tower which houses 405 luxury units; comprising 111 studios, 138 one-bedroom, 107 2-bedroom, 43 3-bedroom and 6 one-, two-, three- and fourbedroom loft-styled duplex apartments. It also houses a five-star Hyatt Regency Dubai Creek Heights Hotel, with 443 fine rooms and an extensive Business Centre.

The modern luxury elements that define Hyatt Regency Creek Heights Residences include state-ofthe-art architectural concepts and beautiful interior engravings. Covering a total land area of 180,000 square feet and a built up area of 2.2 million square feet, the project’s distinct contemporary ambience complements wasl’s other recent developments, such as wasl district, wasl trio and wasl vita, which have been designed to highlight Dubai’s rich heritage and to regenerate the city’s prominent areas. Zainab Mohammed, CEO of Property Management

and Corporate Communication, said, “The new development has impressed potential buyers because of the high quality of the unit and because buyers are able to move in as soon as they wish. This means that they have a practical investment that is a home and one that starts working for them straight away.” Hyatt Regency Creek Heights Residences is situated at a prime location on the Dubai Creek. The complex is just 10 minutes from both the old areas of the city and from its more modern Downtown, Burj Khalifa, and Dubai International Financial Centre (DIFC). The development marks a significant achievement for Dubai, as the project is the first of its kind in the city where buyers can purchase property that is ready. They can take possession immediately and move in, thereby maximising return on investment over the short and long term periods. “wasl is proud to be supporting Dubai’s ongoing development and Hyatt Regency Creek Heights Residences represents a milestone on this journey. We intend to continue undertaking more projects in this sector, thereby ensuring the diversity of our portfolio in the freehold market in the coming years,” she said. “The customers’ keenness to snap up units in this new development is further evidence that Dubai’s real estate sector is based on solid foundations. We are very grateful to the government for the legislation they have launched that provides the market with such high levels of transparency and credibility that are underpinning customer confidence,” she stated. g Gulf Property

INTERVIEW

Al Hamra’s projects boosting RAK market

By Paromita Dey Senior Reporter

stablished in 2003 with a focus on real estate development, leisure, hospitality and construction, Al Hamra Real Estate Development has surely come a long way, now having over 3000 employees and a net asset value of US$700 million. The company, established by His Highness Sheikh Saud, is the developer of the Dhs7 billion Al Hamra Village, one of Ras Al Khaimah’s exclusive luxury residential and leisure development. The development covers an area of 77 million square feet and includes 1.5 kilometres of beach, over 1,000 villas and town houses, nearly 2,500 residential apartments,

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five hotels including Waldorf Astoria, an 18-hole golf course, a marina, and a shopping mall; all within a fully integrated community. In an exclusive interview with Gulf Property, Benoy Kurien, General Manager, Al Hamra Real Estate Development mentioned that currently the developer is focussing on Falcon Island, built on a natural island spanning over 2.2 million square feet, and also Bayti townhomes, a gated community environment within a golf and beach development. Excerpts from the interview:

Gulf Property: What do you think Al Hamra’s current position in the UAE market is as a real estate developer? Benoy Kurien: Al Hamra Real Estate Development is the leading property devel-

oper in the Northern Emirates and offers some of the most luxurious properties in the UAE market. With the development of its flagship development Al Hamra Village, Al Hamra Real Estate Development has also established itself as one of the most significant luxury community facilitators. As a result, with over 1.5 kilometres of beaches, a championship golf course, marina, shopping mall and five luxury hotels, Al Hamra Village is one of the most sought after communities in the country. We have recently launched two new projects within Al Hamra Village. These are Bayti and Falcon Island, both of which combine exceptional quality with sustainable designs. Falcon Island will add an entirely new dimension to the market when completed. Through this de-

velopment, we aim to be the first residential property developer in the GCC region to attain the coveted Platinum ‘Leadership in Energy and Environmental Design’ certification, which is the highest possible rating offered by the US Green Building Council.

What and where will your focus of the company in the coming year 2015 be? What plans do you have to strengthen the company’s position? In 2015, our focus will continue to be on construction of quality homes at Bayti and Falcon Island. With all of the 1,000+ villas and close to 98% of the 2,500 apartments at Al Hamra Village completely sold out, this will form an important part of our growth strategy and our ability to cater to the enormous demand we have seen for our properties.

INTERVIEW

â&#x20AC;&#x153;In 2015, our focus will continue to be on the construction of quality homes at Bayti and Falcon Island. This will form an important part of our growth strategy and our ability to cater to the growing demand for our properties. â&#x20AC;?

- Benoy Kurien, General Manager, Al Hamra Real Estate Development

Sustainability will also be a key focus and we are currently in the process of pioneering innovative projects to maximise energy usage and generate utilities from the abundant renewable energy resources at our disposal. From environmental impact assessments to the realisation of these measures, we are committed to ensuring our projects are completed with minimum impact to the beautiful environment and eco-systems that are enjoyed by our residents. A central pillar of this drive will of course, be the features being incorporated within new builds at Bayti and Falcon Island properties, including insulated walls, solar heated and energy efficient water tanks, solar lighted streets, and smart technologies that will help homeown-

ers monitor energy consumption.

When do you expect to finish construction on Falcon Island? Have you adopted a phase-by-phase approach or are you planning to hand over all units together? Falcon Island is due for completion at the end of 2016. However, preparation work has already begun in order to clear the private island ahead of the 150 luxury properties that will be constructed over the next 24 months. The project will be constructed and delivered in one phase. We have been finalising sustainable designs and reviewing the final tender documents as we are preparing to award the Marina and infrastructure con-

tracts shortly.

How has the response for Falcon Island been so far? How do you expect it to be in the future? Interest has exceeded all our expectations and following the response we received at recent trade shows in Dubai, Abu Dhabi, Saint Petersburg, and Moscow, we expect that to continue. As expected, luxury interiors by reputed companies like Bentley Home, Fendi Casa, and Kenzo Maison continue to draw interest from potential investors, and the first public offering has already been sold out. 75% of a second public offering has also been sold off-plan. On a separate note, the first Bayti release has also been completely sold out and another one is being prepared.

For a grand development like Falcon Island, huge investment is needed. What is the source of finance for Al Hamraâ&#x20AC;&#x2122;s projects? Do you raise money through bank loans or do you have equity partners? Falcon Island will be completely self-financed. Although we have excellent availability of funds from banks, this project will be funded from our own resources and partially from sales proceeds.

Give us a brief overview of the other projects, if any, that Al Hamra is currently developing? In addition to Bayti and Falcon Island, we are always looking to add value to the Emirate of Ras Al Khaimah wherever possible. We have several other projects under study but are not at a stage Gulf Property

INTERVIEW An artist’s impression of Bayti townhomes in Al Hamra Village

to make any public announcements at this point.

Not much is known about the property market of Ras Al Khaimah; very less is talked about it. So what are your views about the Ras Al Khaimah real estate market? How has the market performed in 2014 and how do you see the market performing in 2015? The market in Ras Al Khaimah has been strong and very active. Although we cannot comment on other developments within the Emirate we are able to share the following information: A) Over Dhs400 million in transactions in Al Hamra Village during 2014. B) Al Hamra Village is home to 64 nationalities. C) Villa prices increased by 18% in 2014 compared to 2013, and by 83% since 2011. D) Apartment values have in-

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creased by 13% in 2014 compared to 2013, and by 42% since 2011. These trends show excellent investment opportunities and sustained growth in the Ras Al Khaimah market.

When it comes to investing in property, investors are naturally drawn to either Dubai or Abu Dhabi. In such a scenario, how successful do you think your projects in RAK will be; will they fetch you enough returns? Do you have plans of expanding to other Emirates in 2015? These are exciting times for the Ras Al Khaimah property market. Not too many people may be aware that RAK is one of the fastest growing emirates in the country. With a GDP growth in excess of 8% year on year, RAK is positioned for growth for some time to come. The property market, tourism, and manu-

facturing are major contributors to RAK’s growth. Astute investors see opportunities in RAK and are continuing to take advantage of this growing market. Investors looking to buy a home for their family and investors developing large projects are choosing RAK. We see big opportunities and growth for RAK in the coming years.

Is Al Hamra catering to only high-end buyers through luxury projects or is affordable housing also on the cards? One of the nice things about Al Hamra Village is that there are great opportunities for every budget. From affordable apartments with full sea view to spacious villas on the beach investors find great value in Al; Hamra Village. Whereas you might pay Dhs2 million for a one-bedroom apartment in the big

cities, you can have a threebedroom villa with a view of the golf course for Dhs1.8 million.

There are multiple foreign builders, from India, Turkey and many other nations, who are increasingly doing business in the UAE. What is your opinion about them? Has this stiff competition in the UAE market affected/affecting your business? We welcome competition in the market, as it drives everyone to provide better value to the investors. I think competition enhances everyone’s motivation and ability to work harder, to deliver better products and at competitive prices. At Al Hamra, we have our proven track record and that makes it easier for us to point to projects we have built and delivered. This reputation is the key. g

Property Rights will help both tenant and landlord INTERVIEW

By Paromita Dey Senior Reporter

magine the ordeal that you have to go through when you think of renewing your tenancy contract with your landlord. You will have to sift through all possible rules and regulations, find out every possible detail from all the combined sources and yet at the eleventh hour, there would be some information missing which will lead you to having a dispute with your landlord. Tobias Young also went through the same hassle while he was re-negotiating his tenancy contract with his landlord. “About a year ago, I was re-negotiating my tenancy contract with my landlord and had quite a lot of issues doing that. Then I thought about it that what would make life easier? What would make the landlords and tenants understand the rights and rules around the tenancy contract?” He, along with some of his other colleagues, sketched out an idea of building a website where they can send everybody the details about tenancy contracts and other rules and regulations. And that is how Property Rights (www.propertyrights.ae) came into existence. “There are rules and regulations in place to protect people. No

one is exempt from the law, the rules and regulations are pretty fair. Yet when we started talking to people, they were scared. Initially we started on the tenant side, we saw a lot of people asking about the details. But once we built it, we also realised that landlords can be included in it as well,” said Young, CEO of Property Rights. The idea is simple: An online service that provides tenants and landlords with all the information they need to know about their property rental rights, tailored individually to each tenancy contract. For just Dhs100 and some basic information from the tenancy contract, the subscriber can obtain access and a better understanding of the marketplace rules and regulations such as the RERA Rent Calculator, the maximum rental increase, the maximum chargeable rent, as well as all legal information regarding rent increases, evictions and legal rules. “If you need to use RERA or the RDSC service, they will charge you 3.5% of your total rental amount to start a case. But we are a small team of three people, and for a small fee, we are trying to provide services to our subscribers, which will genuinely help them. We have recently upgraded the website and the payment facilities so that we can receive debit and

Tobias Young, CEO, Property Rights

credit cards and PayPal,” added Young. The online portal will answer all of the following questions:Do you know what your legal rights are? Do you know how much the rent can legally be increased by? Do you know when a tenant can and can't be evicted? Do you know when or how to make a formal legal complaint? Throughout the year, the subscribers will receive information about their legal rights, which will help clarify the contractual grey areas such as rental increases, eviction notices and other legal guidelines, from the subscription-only online service portal. All of these are a major concern for tenants

and landlords alike. Young also has plans of approaching companies to sign up for their services, so that the employees of the companies can benefit from their services. “We are approaching big companies. The idea is that maybe some will like to subscribe to it as a perk for their employees. In the new year, we will be approaching the big names in the market and we are also hopeful that some of the smaller companies find us.” So now you can save yourself all the worry when renewing the tenancy contract, Property Rights will ensure that you know your rights in advance of when they are needed, helping to remove the elevated stress levels that occur when trying to renew a tenancy contract. g Gulf Property

INTERVIEW

Solidere International: The force behind Al Zorah

By Paromita Dey Senior Reporter

hen we talk about Al Zorah, the first thing that comes to mind is the natural beauty, sandy beaches and pristine coastline. Nestled over a million square metres of natural mangroves, home to more than 58 bird species including the beautiful pink flamingos, 12 km of waterfront and 1.6 km of sandy beaches, leisure lifestyle is another name for Al Zorah. And the brainchild behind this project is a joint venture partnership between the Government of Ajman and Solidere International. In line with a strategic ob-

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jective of development in Ajman, the Government of Ajman entered into a joint venture with Solidere International to plan and develop Al Zorah, which enjoys a free zone and a freehold status, where foreigners have the right to 100% ownership and tax-free development. Solidere International (SI) is a master developer, a real estate developer, a development manager and a property manager. SI is limited company registered in Dubai International Financial Centre (DIFC). Solidere s.a.l. of Lebanon is its founding shareholder. Solidere, the Lebanese company, responsible for the development and reconstruction of Beirut Central District s.a.l., was incorporated as a Lebanese joint-

stock company on May 5, 1994. The company's shareholders include individual and institutional investors from the Middle East, Europe as well as international funds. â&#x20AC;&#x153;Solidere International is a company registered here in Dubai. The parent company Solidere s.a.l. from Lebanon owns 39% of the stocks of the international company. The rest of the stocks are owned primarily by Saudi and Emirati investors. We operate out of Dubai and our big projects are in Saudi Arabia, UAE and Lebanon. And we are tapping into growing markets with projects that we will announce very soon,â&#x20AC;? said Oussama Kabbani, Chief Operating Officer at Solidere International.

Solidere Int. spearheads Al Zorah project

Al Zorah is a 50-50 joint venture between Solidere International and the Government of Ajman. Located along the natural peninsula on the coastline of Ajman along the Arabian Gulf, the flagship project of Al Zorah Development Company is spread over an area of 5.4 million square metres, bordered by a 12 kilometre-long seafront. Set apart from other destinations by its undivided setting of 1 million square metres of natural mangroves, Al Zorah claims to unite the best of nature with the finest in modern amenities to create refined places for life. With a total development

INTERVIEW

“The world just recovered from a financial crash. I think Dubai went on to a jogging mode very quickly. Now it is taking a fair bit of fresh air and will then jog again. I just see a minor correction in future, which according to me, is quite healthy. ”

- Oussama Kabbani, Chief Operating Officer, Solidere International

value of Dhs2 billion for Phase 1 of the project, the construction has begun and is progressing rapidly, with an expected completion date in the last quarter of 2015 or beginning of 2016. “One of the most remarkable aspects of Al Zorah is its location. We have an absolutely beautiful beach; the location is one of the best kept secrets of the UAE featuring extensive mangroves with varied species of birds,” explained Kabbani. He believes that, being a prestigious and experienced developer in partnership with the government, and being in the right location, put together will translate SI’s vision into reality, which is to become one of the best lifestyle destinations and coastal living in the UAE. Kabbani is confident that the project will be completely handed over in the next 18 months, since the Phase 1 of the project is currently underway. “We will be rolling out two world-class beachfront hotels and resorts, the

Oberoi Hotel & Resorts and the Lux resort, which will be totally financed and operated by these two global resort chains. We have serviced apartments associated with the hotels. We have an international 18-hole golf course and 42 contemporary Golf Villas. We will have a beach club and beach villas and retail facilities. All of which will be handed over in the next 18 months.” Sales for the project have begun, with investors showing strong interest in the Golf Villas and residences. “Our sales have already started; we have a contemporary designed sales centre in Ajman. We have started the marketing for the 42 villas, and are targeting people who appreciate nature and an active lifestyle,” Kabbani stated.

Expansion plans for SI

The company has plans to expand their presence in

Dubai and Abu Dhabi. “We are in discussion with numerous partners in Abu Dhabi and Dubai. We continuously seek for the right partner and the right location,” Kabbani revealed. The company has projects in Saudi Arabia, including a tower in Jeddah and a residential compound in Riyadh. Plus they have two other retail projects. Kabbani mentioned that the company owns a new gated community 15 minutes from downtown Beirut, which is in the final master planning phase. “The launch of the project will be evaluated according to the political situation of Lebanon. Moreover, we are also looking at a new destination in Lebanon which is a waterfront development.” He added that as an international company, it is strategic to look into emerging markets. “We are an international company and expanding. We believe that many international emerging markets are witnessing high demand for real estate.”

UAE real estate market outlook

The UAE real estate market is believed to be vibrant and Kabbani seems to agree. “I think it is showing healthy signs. We are seeing minor corrections and adjustments. Basically, they are healthy signs of a growing market. There has been a little slowdown which is a great sign.” There have been reports by various firms that the sales of villas in the UAE have gone down in Q3 2014, but Kabbani remains unfazed by the fact. He believes that it is the nature of real estate. “It is a supply and demand situation. The world just recovered from a financial crash. So if you are sick, you can’t run right away, you have to walk first and then jog. I think Dubai has gone on to a jogging mode quite quickly. Now the market is taking a fair bit of fresh air and will then jog again. I just see a minor correction in future which is quite healthy.” g Gulf Property

NEWSUPDATE

Al Habtoor announces projects worth Dhs2bn

By Indrajit Sen Senior Reporter

ajor UAE-based conglomerate Al Habtoor Group recently took the Dubai real estate market by storm by announcing the launch of three mega worth over Dhs2 billion. At a press conference in Decem-

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ber organised at the Habtoor Grand Beach Resort & Spa, Al Habtoor Group’s own 5star luxury hotel in Dubai Marina, the Group unveiled its ambitious ventures, namely: Al Habtoor Polo Resort & Club, the Metropolitan Sheikh Zayed Road hotel and Oasis Villas. Khalaf Ahmad Al Habtoor, Founder and Chairman of the Group, stated that construction work is already un-

derway for the three largescale projects in Dubai, which are expected to be operational within the next two years. While the Al Habtoor Polo Resort & Club, is expected to cost Dhs993 million, the Metropolitan Sheikh Zayed Road hotel and the Oasis Villas, combined would cost Dhs1.02 billion, the consortium revealed. “I am delighted to be unveiling the plans for these

magnificent projects, which will be major new landmarks in Dubai and play a key part in delivering continued growth both for the UAE and for ourselves,” Khalaf Al Habtoor said. “As our company motto states, ‘we are growing with the UAE’, and its economic fundamentals support this vision. We have been in business close to 45 years and with projects such as these being added to our

NEWSUPDATE An artist’s impression of Al Habtoor Polo Resort and Club

portfolio, there is no reason why the next 45 years should not see us enjoy even greater success.”

A destination for polo lovers

Al Habtoor Polo Resort & Club is slated to be a mega luxury development that will comprise 162 luxury bungalows, and will include a fivestar hotel with up to 136 keys. In addition, there will be a polo club, a state-of-theart polo academy, and a riding school with 500 stables. The exclusive 6 million square feet project is located adjacent to Emirates Road and the Dubai-Al Ain Road, and within close proximity to Zayed University. Al Habtoor Polo Resort & Club will have the added benefit of all the

amenities that Dubailand offers, including seven theme zones that will include theme parks, sports venues, ecotourism, health facilities and a resort. The resort will be designed by well-known British architects WS Atkins & Partners. Al Habtoor Polo Resort & Club will also be home to four world-class polo fields, which will help reinforce Dubai’s role on the world polo circuit. The Polo Academy will offer riders of all ages and ability with a wide range of riding disciplines including dressage, riding and show jumping. Mohammed Al Habtoor, Vice-Chairman and CEO said, “The new Al Habtoor Polo Resort & Club will be a wonderful addition to the range of world class facilities that both visitors and resi-

Khalaf Ahmad Al Habtoor, Founder and Chairman, Al Habtoor Group Gulf Property

NEWSUPDATE An artist’s impression of the Metropolitan Sheikh Zayed Road hotel

dents can enjoy. We are proud of our heritage in supporting the UAE’s development as an aspirational place to live and vacation and by adding a dedicated resort for polo, the sport of kings, to our portfolio, we are demonstrating our intent to enhance further the quality and variety of our assets and services.” “Residents will have exclusive access to the polo facility and will be able to tour the location,” he added. The project is due to be completed in 3 phases: The fields will be ready by the end of 2015, the stables and equestrian centre by mid2016, and the hotel by the end of 2017.

Metropolitan hotel 2.0 The

Metropolitan

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Sheikh

Zayed Road will be a 4-star boutique hotel located on Dubai’s bustling and most important road. The hotel, well on its way for completion in 2016, will have a total of 334 rooms and suites. Commenting on the new Metropolitan, Khalaf Al Habtoor said, “We are pleased to bring back an old favourite. We started out in the hotel business in 1979 with the Metropolitan Hotel, so it is fitting as we approach our 45th anniversary that we should revive an established brand that is so much part of our heritage. I feel sure that the new Metropolitan will enjoy the same success as the original one and become embedded in the hearts of Dubai’s residents and visitors alike.” The Metropolitan Sheikh Zayed Road will also incorporate a lobby café, an outdoor courtyard café, an

all-day dining restaurant and the ‘Don Corleone’, an Italian restaurant. Other facilities include a ballroom with a prefunction room, five meeting rooms with breakout areas, a business centre and roof-top swimming pool and gymnasium. The hotel, designed by Khatib & Alami, will also see the revival of the Red Lion traditional English pub. “When we closed the Metropolitan, which was our first hotel in Dubai, I promised our regular customers that I would one day revive the Red Lion. Today, I am delivering on that promise. I am not nostalgic, but I am conscious of what our customers want, and I am confident that this new hotel will become a new destination in Dubai,” Khalaf Al Habtoor remarked. The hotel is being developed and will start operating at a time when tourism in the UAE is phenomenal and the

hotel market in Dubai is growing in leaps and bounds. Almost every month a hotel is launched in Dubai and numerous others are either ready for launch or are under construction; a situation leading to intense competition in the market. “The hotel business is not as easy as people think. Yet we gain a lot of revenues from that arm of our business,” Khalaf Al Habtoor mentioned. Although the room rates for the hotel haven’t been decided yet, he said, “We want to be fair and reasonable with our rates.” Khalaf Al Habtoor also revealed during the media event that Al Habtoor Group is also in talks of buying a hotel in Illinois state of the US. “I am open to investing abroad, if a good opportunity so arises,” he said when asked about his plans to invest abroad.

NEWSUPDATE

Don’t panic over global market fluctuations: Khalaf Al Habtoor

alling oil prices should be viewed as a positive trend; investors are ‘over-reacting’ says Al Habtoor Group Chairman Khalaf Ahmad Al Habtoor. According to him, investors shouldn’t be overly concerned with fluctuations in the global markets as a result of the drop in oil prices. Al Habtoor Group Chairman said he can’t understand why investors are running for safety. “A drop in oil prices isn’t necessarily a bad thing, in fact, it’s very positive for the majority of sector like airlines, shipping, transportation and manufacturing,” he explained. “The benefits of lower oil prices outweigh the negatives,” he said. “A drop in oil prices benefits many businesses. Sure, energy companies lose out, but cheaper oil is generally good for the economy and the overall stock market. Companies that use oil as an input, experience a reduction in their cost of production. This means profit margins go up, and this can be passed on to the consumer.” Khalaf Al Habtoor provided an example to prove his point. He said in India car sales jumped 10% in November, 2014 on the back of lower oil prices, according to data released by industry body Society of Indian Automobile Manufacturers. “Car sales bounced into positive territory in India following two months of decline. This sends a strong message,” he said. He added, “If you look at the US economy, the world’s largest economy and a significant energy consumer, it

would benefit from a drop in oil prices. Consumers gain because gas costs less and results in higher real income which could result in increased spending. Businesses benefit from lower costs of production and higher profits, and this could lead to increased output, which means more activity in the economy.” Investors were frightened after Morgan Stanley revised its oil forecast lower, saying prices could drop as low as US$43 a barrel next year. Crude oil has already decreased from over US$100 a barrel to around US$65. “I believe the analysts are being more academic than practical in this instance. This is just an assessment and it has led the bears to come out,” Al Habtoor said. “What people have to remember is that the stock market is not an indicator of the overall economy.” Commenting on the UAE market, the Al Habtoor Group Chairman said that country has proved it can withstand global market turmoil following its recovery from the global crisis in 2008. “The UAE has a diversified economy that is not wholly reliant on oil,” he said. “Plus the UAE government put measures in place to give itself a buffer, and it is in a better position than ever to cope with external shocks.” Unlike most other corporate leaders, Khalaf Al Habtoor was humble enough to admit during the media announcement that, “A lot of times I invested on a trial and error basis; I made the mistake of investing overseas and lost my money. Therefore I will encourage

everyone, especially the people of the GCC, to spend their money and invest here in the UAE.” Given the fact that he is a patriotic person, Khalaf Al Habtoor also explained why Al Habtoor Group has been investing in the property market during the last few years: “We built just to prove to the UAE citizens, residents and outsiders that we are trustworthy. I will like to call the UAE a safe haven of the world. Here you can be safe and comfortable with your family, can have the best education and the best infrastructure, and most importantly security, which is rare in the world. Besides, you also have the among the world’s best airports and airlines. This is the heritage of my country to serve all. Here we do not differentiate on the basis of culture or colour or religion. We are all one big family together and that contributes to the success of the UAE.” g

“A drop in oil prices benefits many businesses. Sure, energy companies lose out, but cheaper oil is generally good for the economy and the overall stock market. Companies that use oil as an input, experience a reduction in their cost of production. This means profit margins go up, and this can be passed on to the consumer.”

- Khalaf Al Habtoor, Founder and Chairman, Al Habtoor Group

Gulf Property

NEWSUPDATE An artist’s impression of the Oasis Villas

Luxury living on Sheikh Zayed Road

The upmarket and luxury residential complex with extensive landscaping, Oasis Villas, is being developed alongside the Metropolitan hotel Sheikh Zayed Road. Due for completion in 2016, the project will consist of 74 units located in the heart of Jumeirah – situated at the junction of Sheikh Zayed Road and Al Thanya Street. The 4, 5 and 6 bedroom villas will occupy a built up area of 20,947 square metres. There will be two 6-bedroom detached houses with large entrance halls leading to a grand staircase. These homes will benefit from their own private swimming pool. While the 51 4-bedroom vil-

Gulf Property

las will be of 246 square metres, another 5 of the 4-bedroom villas will be of 300 square metres each. The residential complex will provide residents with access to a fully-equipped gymnasium, communal swimming pool, children’s play area and a jogging track. However, a crucial aspect of Oasis Villas is that they are not for sale; the reason being that any property on the land that comprises Jumeirah cannot be sold, as per law. Mohammed Al Habtoor clarified that Oasis Villas will only be rented out.

Strong record, roaring future

“We are approaching our 45th year with great success.

We look forward to creating new landmarks for the city of Dubai,” Khalaf Al Habtoor said. “In total our investments in the UAE over the past 24 months have amounted to an excess of Dhs15 billion. This shows how much we are growing,” he revealed. During the media announcement, he stated that Al Habtoor Group has been consistently recording strong growth and cited figures to prove the current and expected growth volume. In the past three years he said total revenue was 37%, with an average annual revenue growth rate of 12.5%. The Group’s total net worth over the same period jumped by 20%, with an average annual net worth growth rate of nearly 7%. The Chairman added that the next five

years are expected to see revenue growth jump to a stunning 161%, which would equal to an average annual growth of 32%. Anticipated net worth growth for the coming five years is slated to be 85%, with an average annual growth rate of 17%. Al Habtoor Group also intends to capitalise on the booming real estate market in Dubai by planning to launch a couple of other mega projects. “The three new projects that we announced are in addition to our multi-use development, ‘Al Habtoor City’ on Sheikh Zayed Road. We aim to open our three hotels there in 2015. These are exciting times for Al Habtoor Group, we are gaining market share across all our businesses and successfully implementing our strategy of

NEWSUPDATE

AHG Chairman readies unit heads for 2015

halaf Ahmad Al Habtoor, Chairman of the Al Habtoor Group met with the Group’s unit heads recently to motivate them for the new year. Khalaf Al Habtoor told the department leaders from Habtoor Hotels, Al Habtoor Motors, Diamondlease, and Emirates International Schools that 2015 is forecasted to be an exceptionally strong year for the Group and that employees must be ready to grasp potential opportunities. “There is no time for complacency,” the Chairman said, “As our motto states, we are ‘Growing with the UAE’. We are an ambitious Group that is demonstrating growth throughout all our units and playing a vital role in the UAE economy. We might not be the biggest company, but we have the biggest presence. We need to ensure we stay ahead of the game, and be number one in everything we do.” He reminded the Directors that the Al Habtoor Group will celebrate its 45th anniversary in 2015. “We are approaching our 45th year with great success. These

collaborating with other world-class brands,” Khalaf Al Habtoor stated. Al Habtoor Group has embarked on an aggressive growth plan in recent years. In the past two years alone, the Group opened the 5-star Waldorf Astoria Dubai Palm Jumeirah, and is ahead of schedule with the Al Habtoor City project. The multi-use develop-

Khalaf Ahmad Al Habtoor (centre) and Mohammed Al Habtoor (second from left) with senior officials of Al Habtoor Group

are exciting times for the Al Habtoor Group; we are gaining market share across all our businesses and successfully implementing our strategy of collaborating with other world-class brands.” “I expect 2015 to be a momentous year. We are setting new benchmarks for ourselves,” he added. “We don’t just compete within the UAE, but globally. We have adopted international standards and best practice, and have raised the bar for others to follow. We are known for our pioneering vision.” “We were among the first to open a hotel in the Dubai

Marina area with the Habtoor Grand Beach Resort & Spa, and the first to pick a location on the Palm Jumeirah – where the Waldorf Astoria Dubai Palm Jumeirah now stands. The naysayers doubted their longevity. But look at us now. Our hotels are in the best locations, and the most expensive real estate in Dubai,” he stated. “It is important that we motivate our employees. They are our biggest asset. I want our Human Resources Department to identify our weaknesses and push them harder. We need to continue to train our staff, prepare

ment, on the banks of the Dubai Water Canal, will incorporate three luxury Starwood branded hotels: St. Regis, W hotel, and Westin. In addition, the complex will be home to the region’s first permanent waterthemed theatrical production by Franco Dragone Entertainment Group. It will also feature a tennis

academy, a European-style Boulevard lined with shops and cafés leading to the Dubai Water Canal. Alongside the hotels, Al Habtoor Group is building three highrise residential blocks complete with ultra-luxury penthouses. Khalaf Al Habtoor proudly said to applause during the media event, “I personally believe in working with our

them for our future, and retain our talent, while putting emphasis on the customer.” Presenting his outlook for 2015, Khalaf Al Habtoor said, “Profit forecasts look strong for the coming year, and we will be opening our landmark project - Al Habtoor City, while embarking on our new developments. Al Habtoor City has great significance as it is located on the site where we first entered the hotel business in 1979 with the Metropolitan hotel. Our new project will be a major landmark for visitors and residents.” g government and grow along with the United Arab Emirates. I think us as Al Habtoor Group and our country; we are one body, created at around the same time. We are committed to grow together and to participate and contribute towards the success of my country. This is why we have launched a lot of projects during the last few years.” g Gulf Property

Palma Holding launches Dhs3.6bn worth of projects INTERVIEW

Gulf Property Exclusive

Kareem Derbas, Chief Executive Officer and Co-Founding Partner, Palma Holding, at his office at the Silverine Tower at Dubai Marina

Gulf Property

areem Derbas is a smart businessman; and highly successful too. He also does things in style. As a developer, he navigated through the global financial meltdown of 2008-10 due to a combination of factors, including his style of business operations. Six years after the global financial crisis hit Dubai and badly affected the real estate market, Derbas sits at his office at the prestigious Silverine Tower at Dubai Marina overlooking the breathtaking views of the sea. He is a happy man with a development portfolio of seven projects with 2,500 units delivered. Although his office seems to be relatively quiet, Kareem is not sitting idle. He is preparing for the next big jump. “We are going to develop two projects on the Palm Jumeirah island with a development value to the tune of Dhs3.7 billion,” Kareem Derbas, CEO and CoFounding Partner, Palma Holding, tells me as we sit down for the interview. “One of them, is currently under design stage that will host 300 units with a development value exceeding Dhs1.5 billion. It will be a numero uno beachfront project and we are expecting good response from the market.” Tendering of the project will take place in March 2015 followed by shoring and piling works. “We are planning to start the sales campaign during the second quarter of this year and expect to deliver the project by the fourth quarter of 2017,” he said. His company was a joint developer of the world’s first 90 degree twisted tower built at Dubai Marina. His company works closely with a pool of international in-

INTERVIEW “We are going to develop two projects on the Palm Jumeirah island with a development value to the tune of Dhs3.7 billion. The market is showing signs of maturity and the price movement is expected to be in line with the economic cycles.”

– Kareem Derbas, Chief Executive Officer and Co-Founding Partner, Palma Holding

vestors, who joined him as equity partners or investors in specific projects. “This helps us to fund the projects and develop them in time, even at a time when things are quite slow,” he explains. Despite the current noise in Dubai’s real estate, he is not aggressive to take advantage of the price increase. “We are a boutique developer and want to remain the same. The market is showing signs of maturity and the price movement is expected to be in line with the economic cycles,” he says. “So, we will remain vigilant and we will go with the market as a matured developer that has a history of deliveries amid challenging economic environment.” In November last year, Palma Holding announced two new signature real estate projects worth Dhs3.7 billion that it will be launching in Dubai in 2015. “The emirate’s real estate market is showing sustainable stability and growth, with investors showing confidence in the sector. Palma Holding’s strategy is to build on this existing confidence and generate even more optimism. We feel that it is the right time to introduce these two signature projects for our investors’ profitable investment,” he added. Palma Holding’s first development on the Palm

Jumeirah is a luxury beachfront residential project designed to be Dubai’s most exclusive. A mix of 1, 2 and 3-bedroom apartments and luxury penthouses will be constructed to make the most of the archipelago’s fantastic beach front. The company’s second project set to launch by Q4 2015 is a luxury residential project in one of Dubai’s key locations. Furthermore, it has partnered with the German Association in Dubai to develop the German International School in Dubai (GISD) in Academic City. Construction of the 1,000 student facility started in mid 2014, with the completion date expected to be in August of 2015 in time for the coming school year. “Our focus is on developing projects in unique and prime locations across Dubai, namely Dubai Marina, The Palm Jumeirah and Downtown Burj Khalifa, with a priority on waterfront orientation. With location being the most important factor in real estate valuations, Palma Holding pays a great deal of importance to the location of its projects. We also develop projects with innovative concepts, developed uniquely to each project. This differentiation is evident in our real estate offering so far,” he said. Established in Dubai in 1998, Palma Holding com-

At A Glance

Dh3.6 billion development portfolio of Palma Holding

Dh3.7 billion

development value of the new projects under planning

Dh2,500

residential units delivered by Palma Holding so far

prises four subsidiaries; Palma Development, Palma Real Estate, Palma Investment and Palma Asset Management. Through these subsidiaries, the organisation provides boutique and tailor-made property services for Dubai’s luxury sector. In addition to property development, Palma Holding also provides up-market real estate management, investment services and post-acquisition consultation, property management and leasing services. Since its inception, Palma Holding has completed over four million square feet of premium properties in Dubai worth a total of over Dhs3.6 billion ($1 billion). g Gulf Property

PROJECTUPDATE Anwa by Omniyat will be a 48-storeyed residential building that will house 225 apartments, that have been on sale. The Dhs600 million project is currently at the piling and shoring stage, with delivery scheduled for 2017

Omniyat aims to double Dhs12 bn value by 2020

Gulf Property Exclusive

mniyat Group, a major property developer in Dubai, will double its current property portfolio to Dhs24 billion by 2020, as it aggressively pushes ahead with projects, a top official said. “We are a firm believer of the long-term growth and sustainability of Dubai, where we have been playing our role by investing in real estate projects,” Mahdi

Gulf Property

Amjad, Omniyat Group’s Executive Chairman and CEO, said after the groundbreaking ceremony of its latest project, Anwa by Omniyat at Dubai Maritime City on December 9, 2014. “We are planning to announce a few more projects with the Dubai Maritime City Authority in the next few months that will double our existing portfolio of Dhs12 billion. We are a major developer in Dubai and the Business Bay where we were the first developer and have 9 projects in 16 plots of land. “Similarly, we are the first developer at the Dubai Maritime City and this is certainly

not the last one for us here.” Amjad said, the development value of the project is about Dhs600 million. The 48-storeyed tower will host 225 well-appointed apartments facing the waterfront that will become a major maritime leisure tourism cluster, overlooking a cruise tourism hub where the government plans to develop a mixed-used development – Dubai Maritime City – at the erstwhile Port Rashid area. “Anwa by Omniyat will be one of the world’s most exciting seafront developments that will stand out as the guiding star of Dubai, visible from the sea in Dubai Mar-

itime City,” the company said. “Designed to recreate the glory days of trans-ocean cruising marked by glitz, glamour and art deco of the 20s and 30s, the prestigious Anwa by Omniyat will be one of the world’s most exciting maritime developments that will stand out as the first symbol of Dubai visible from the sea.” Located right next to the marina and the boardwalk, Anwa is positioned on the same strip as the Four Seasons and the Bulgari hotels. It offers residential apartments, all with sea views, some with two-sided views of

At A Glance

Dhs24 billion Omniyat Group’s portfolio value to reach by 2020

Dhs12 billion Omniyat Group’s current portfolio value

Dhs600 mn

development value of the Anwa by Omniyat

Dhs250 mn

investment in developing infrastructure of Phase B of Dubai Maritime City

Deira Islands and Jumeirah. Anwa by Omniyat will be one of the world’s most exciting maritime developments that will stand out as the first symbol of Dubai visible from the sea. Omniyat has already appointed Kele Contracting as the contractor for the project, and Al Ghurair Contracting and Engineering Works as the specialist contractor for piling works, following a rigorous tendering process. The project is scheduled for completion in 2017. The groundbreaking ceremony was conducted by Khamis Juma Buamim, Chairman of Dubai Maritime

PROJECTUPDATE

Omniyat to push ahead with projects: Mahdi Amjad

mniyat Group, a major developer of freehold projects, is pushing ahead with its projects at the Business Bay and other parts of Dubai. Omniyat Group is a private developer established in 2005 headquartered in Dubai. It is considered as an innovative and premium development brand in the Gulf region, conceptualising and creating real estate assets with a combined gross realisation of over Dhs6 billion. Omniyat undertakes investment, development and asset management across a broad spectrum of property assets, providing sustained value and tangible, measurable benefits to all stakeholders involved, including shareholders, buyers and the community. The company, which has an early mover advantage at the Dubai Maritime City with Anwa by Omniyat, is planning to announce a few more projects at the Dubai Maritime City, Mahdi Amjad, the company’s Executive Chairman and CEO, told Gulf Property in an interview on the sidelines of its ground-breaking ceremony held last month. Excerpts:

Gulf Property: How big is your portfolio and what are your development plans going forward? Mahdi Amjad: We have nine projects in 16 plots of land at the Business Bay with a portfolio value of Dhs12 billion. We want to double our portfolio value in the next five years as we are a firm believer of the long-term

development and once completed, will become an architectural landmark designed by the famous architect Zaha . It will become a destination by itself at the Business Bay and we are all proud to be able to built it.

Mahdi Amjad, Executive Chairman and CEO of Omniyat Group

growth prospect in Dubai. Our latest project Anwa is not going to be the last at the Dubai Maritime City, where we are planning to build a few more projects due to its ideal location on the waterfront that is set to become a major destination. We will launch a series of projects along with Dubai Maritime City Authority next year as the infrastructure gets ready for project development. We are also pressing ahead with the existing projects while we have delivered some of them, as you all know.

You have some unfinished projects at the Business Bay such as the Pad and the Opus. How confident are you on completing them? Both the projects, with a combined development value exceeding Dhs3 billion, are in advanced stage of development at the Business Bay. We are on the 21st level of the Pad while construction on the Opus is also moving ahead at a great speed. We had changed its designs a bit on the interiors by placing a boutique hotel that complements the mixed-use

You have started construction of Anwa at a time when the real estate market is depressed. Are you not worried on the project’s sales and completion? Real estate is a long term investment, although the sector goes through the usual economic cycles. While we are aware of the market situation, one should not forget the strong economic fundaments on which the economies of Dubai and the UAE has been built. Despite the current slight slowdown, the investor sentiment did not decline. The economy is continuously growing and with the Expo 2020 coming, real estate projects will continue to be in demand, be it residential, commercial, hospitality and retail. Besides, as a company, we first ensure the funding of the project before digging grounds. In the case of Anwa, for example, it has been well capitalised with equity, investment and subscription by our investment partners as well as bank finance to continue with the project till completion. As we launch the sales campaign, 50% of the inventory has already been subscribed by investors and equity partners so that there are no funding problem to carry out the construction. So far we have enough capital placed to carry out the construction works. And as we progress, sales proceeds will continue to pour in. g Gulf Property

PROJECTUPDATE

City and Mahdi Amjad, along with other senior officials from Dubai Maritime City and Omniyat Group. Amjad said, the project has been well capitalised with nearly 50% of the residential units being subscribed by shareholders and investor partners even before the commercial launch of the project. “We have a unique business model for development where we first ensure the funding options before breaking ground. We have put in equity backed by a strong investor endorsement that subscribes to around 50 per cent of the units and with the support of the bank finance facilities, we are confident of completing project in time, by the end of 2017,” he added. Construction of the project has already started in the first residential building at the Dubai Maritime City, where 19 other such projects will be built in the next few years, Buamim said. “We have redesigned the master plan that is almost complete and 11 developers have come on board to kickstart their projects,” he said. “In the next few months, they will be announcing their projects with construction plans. As far as Dubai Maritime City, the master developers, we have signed contracts in place with these developers who are currently working with relevant government authorities on finalising the building and other permits to start working.” Dubai Maritime City is the first integrated maritime services cluster in the region that is being built on the Port Rashid Area and extends up to Dubai Drydocks as well as expands into a reclaimed man-made island where a mixed-use residential, com-

Gulf Property

An artist’s impression of Anwa by Omniyat

mercial, leisure, retail and entertainment facilities are scheduled to be built where a cruise terminal will be the centrepiece of tourism activities and maritime services will compliment the facilities’s industrial cluster on the other side. Principally located towards the east of Dubai between Port Rashid and Dubai Dry Docks, Dubai Maritime City is just one kilometre away from Jumeirah Beach Road, 3 kilometres from Sheikh Zayed Road, and 10 kilometres from Dubai International

Airport. It is just 15 minutes away from Burj Khalifa and Dubai Mall. “Dubai Maritime City will also incorporate retail spaces and offices. The Business District will have a 3,200-meter-long boardwalk with dedicated jogging and cycling tracks. Moreover, there will be world-class berths for boats,” Buamim said. “We have invested Dhs250 million in the development of the infrastructure for Phase B which is ready for developers to construct their projects.

“The Marine District will house some of the largest yacht manufacturers from Europe and Middle East and leading spare parts suppliers and repair centres. “A new bridge will connect Bur Dubai to the Dubai Maritime City Business District, and a tram line will link the whole Business District. A multilevel car park will be developed, along valet parking zones. We are pleased to announce that all basic infrastructures, including DEWA substations, have been completed.”

PROJECTUPDATE

Kele orderbook touches Dhs2.4 billion

acked by the latest contract to build the Dhs600 million Anwa by Omniyat, the total order backlog of Kele Contracting LLC jumped to Dhs2.4 billion, it’s top official told Gulf Property. “Our current contract order book currently stands at Dhs2.4 billion involving 32 buildings across the region,” Andrew Elias, Chief Executive Officer of Kele Contracting LLC, told Gulf Property in an interview. “We are a regionally-focussed construction company with a GCC-wide operations with 500 management staff managing our business across the region.” Established in Australia over three decades ago, Kele has continued to develop a wide range of construction capabilities and expand operations within Australia and globally throughout the Gulf, Middle East and Africa. Kele’s platform for growth is based on specialist construction techniques backed with customised design, en-

Dubai Maritime City revealed its new plan for the marine destination that will have 53 mixed-use projects, hotels, shopping malls, restaurants and 10 parks. Buamim said, “This project will play a key role in positioning Dubai Maritime City as an ideal location for modern living with a perfect worklife balance. Anwa will be a key component of Dubai Maritime City offering an ideal living experience by the sea.” Featuring views of the ocean from every floor, Anwa

by Omniyat will be dressed to perfection, offering 225 units, incorporating 29 studios, 80 one-bedroom, 87 two-bedroom and 23 threebedroom apartments, 1 penthouse and 5 townhouses. It will also have 8,133 square feet of retail area as well as landscaped gardens, gymnasium, infinity pool, kids pool and play area and barbecue area. Mark Phoenix, Managing Director of Omniyat Group commented, “Through this project, Omniyat is not just developing a dynamic, sea-

Andrew Elias, CEO of Kele Contracting LLC

gineering and management services. Backed by a strong shareholder base that includes Enshaa, Kele International Holdings, MAF Group, Abraaj Capital and Emirates Investments Group, the company has a wide-ranging project portfolio in the GCC region and Australia. Its completed projects include well-known shopping malls like Deira City Centre, Mall of the Emirates, as well as a cluster of residential buildings and villas across the region. He said that the current slowdown in the real estate market is a temporary lull. “The long-term prospects of Dubai and the UAE remains fundamentally strong facing zone, but introducing a concept that guarantees a totally new experience in opulence, distinguished by standout elevation and lavish interiors. It will be Dubai Maritime City’s first residential project.” Amjad said, “We have designed Anwa for those with exquisite taste and who aspire for ultimate elegance and exclusive living. Interest has been phenomenal and we are very excited about the launch. “Dubai is a city of dreams and it is the place where

for the real estate and construction sectors,” he said. “Take for example, the $30 billion government spending for the World Expo 2020 and then there would be another $20-$30 billion investment by the private sector leading to 2020, totalling up to $60 billion (Dhs220 billion) and that’s a whole lot of business for the industry. “That translates to $10 billion (Dhs36.7 billion) worth of business every year for the next five years, which will be enough to keep all of us busy and running,” Elias said. He says, most of the Expo 2020 projects have not yet been offloaded yet. “Once these real estate projects come out in the market, it will change everything and there will be hectic construction activities going on,” he mentioned. If everything works out well for him, Kele will be the first contractor to be on site to develop the first residential building at the Dubai Maritime City – an integrated mixed-use maritime and ship repair cluster where industry professionals will be able to live, work and enjoy life to the fullest. g scale meets imagination. We have created Anwa by Omniyat to offer a style of living never seen before in this part of the world. Omniyat will live up to its promise of delivering one of the most innovative projects of our time. It represents a big-time investment opportunity for investors. “Earlier, we succeeded in bringing a slice of Miami to Dubai through the new design of The Pad tower in Burj Khalifa District. With Anwa, we aim to bring a piece of the past into the modern surroundings of Dubai.” g Gulf Property

INTERVIEW

Pullman Dubai gets a Dhs100mn makeover

By Indrajit Sen Senior Reporter

ew hoteliers realise that their hotels, no matter how grand, need to be upgraded for it to match the changing times and the new, modern hotels. Within less than a year of renovation and an investment of over Dhs100 million, by joint own-

Gulf Property

ers Majid Al Futtaim and global hotelier brand Accor, Pullman Dubai Deira City Centre Residences relaunched its refurbished hotel apartments in November. The hotel apartments, joined to the 5-star Pullman Hotel and the bustling Deira City Centre mall, is offering guests a distinguished residential address to call their own. Guests will likely enjoy the same level of service and quality as they would while

staying in the Pullman Hotel. The new residences have direct access to the Dubai Metro through the mall. Besides, the Dubai International Airport too is within a maximum drive of 15 minutes. “Accor is very proud of the latest addition to our Luxury & Upscale hotels in Dubai with the fully renovated Pullman Dubai City Center Residences,” Denis Dupart, Vice President Operations for Accor Luxury & Upscale

brands, Middle East and Egypt, said. “Accor always strive to offer our customers the highest quality and the finest accommodations; the completion of The Pullman Residences will undoubtedly satisfy our longer staying customers. Guests staying at the Pullman Residences will be able to use all the facilities at the adjacent 5-star Pullman Hotel - including the bars, restaurants, spa and

beauty salon. We are very excited to reopen this popular residential hotel at the heart of Deira,” he commented. The Pullman Residences offers cosmopolitan living that guests expect when staying in such a centrally located area. The owners claim their product to be one of the only ‘really serviced apartments’. According to them, their competitors just have hotel rooms with kitchens for guests, whereas they want their guests to feel at home. The management feels what differentiates them from other hotel apartments is the high quality of services they offer to the guests. “Majid Al Futtaim has made a substantial investment in the refurbishment of The Pullman Dubai City Centre Residences,” Simon Barlow, Chief Executive Officer, Hotels, at Majid Al Futtaim Properties, said during the reopening ceremony. “Our interior design team has brought a contemporary and comfortable feel to the fit out of the apartments, which we believe will be very popular for families visiting Dubai, business travellers on extended stays and leisure travellers shopping at the popular Deira City Center Mall. I am very proud that the refurbishment of this hotel by the Majid Al Futtaim team has taken just ten months to complete [having started in January 2014] and will open several months earlier than planned, a great achievement!” added Barlow.

What is special about Pullman?

The Pullman Hotel itself 317 rooms and suites, and the Pullman Dubai City Centre

INTERVIEW

Simon Barlow, Chief Executive Officer, Hotels, at Majid Al Futtaim Properties (left) and Denis Dupart, Vice President Operations for Accor Luxury & Upscale brands, Middle East and Egypt

Residences have 133 keys, split between 7 studios, 63 1 bedroom and 63 2 bedroom apartments. The two projects combined employ nearly 400 people from about 26 different nationalities. The Pullman Residences proposes chic and comfortable living; plus an added option of connecting rooms to create up to 4 bedroom apartments. Each layout type comes completely furnished including a fully equipped kitchen along with cleaning appliances such as a washer and a dryer. The residences also provide a dining area, desk space and amenities for coffee and tea. For guests who are on a tight schedule or simply in a rush, Pullman has launched a new ‘Grab & Go’ concept at their ‘One Stop’ shop in the lobby, where guests can

enjoy a quick bite on the go. Moreover, guests will find the pantry stocked with all their basic grocery requirements. A unique feature of the Pullman Residences is that residents can find an extensive list of grocery items along with their prices, in each apartment; from where they can order for whatever they need. This service is part of the management’s commitment to make lives as comfortable as possible for the guests. “We are very clear already. We want to be the best hotel and serviced apartments in our category in Dubai. So this is the target for all of us here in this hotel,” said Laurent Chaudet, General Manager of Pullman Deira City Centre Residences. Chaudet elaborates on another special feature of the

Pullman Residences: “Connectivity in a hotel has to be fast, has to be clear. Technology should be advanced. For instance, in our hotel apartments we have interactive TV and you can connect your mobile phone to the TV. So if you have some information or Internet on your phone, you can broadcast it on the TV. This feature is not everywhere, but it is a trend in a modern hotel apartment. The guests are looking for that.” For more dining and lounge options, the Pullman Hotel’s restaurant and bar venues are available to all the guests, catering to different lifestyles and tastes. The Medley restaurant is the perfect venue for international food aficionados, while La Fabrique Sports Bar caters to sports fans, Le Cafe has an array of patisseries for Gulf Property

INTERVIEW “Obviously the supply (of hotel keys) is now coming more and more. The market does not absorb this oversupply of rooms. But with many new hotels, many more to open, you see the market growing always at a very good pace. As a consequence of that eventually there will be a stagnation of the average room rates and occupancy; eventually a decrease. But that is still a very good result and considering the activities in Dubai, it is still great.”

- Laurent Chaudet, General Manager, Pullman Deira City Centre Residences

those with a sweet tooth and the Azure Pool Lounge welcomes shisha lovers. Furthermore, the management of Pullman Dubai City Centre Residences also recommends their leisure, fitness and entertainment facilities for the lifestyle conscious. Residents have access to the Fit & Spa lounge, fully equipped gym, tennis court or in the swimming pool that features panoramic views of the Deira district of Dubai.

Marketing strategies

Thanks to its excellent location in a vibrant district of the city, with access to all that one needs, the occupancy rates for both the Pullman Hotel and the Pullman Deira City Centre Residences, have always been high. “We had almost 80-90% occu-

Gulf Property

pancy in the previous year before the renovation. We expect to run the same,” Chaudet states. After the makeover, the

management has decided to raise the average rates for an apartment, something that will create a ‘big difference’, Chaudet says. For a 1

bedroom apartment, the hotel will be charging Dhs1,000-1,200++. However, the room rates remain subject to travel seasons and

A one bedroom apartment at the Pullman Deira City Centre Residences, Dubai

INTERVIEW The rooftop Azure Lounge at Pullman Hotel, Deira, Dubai

the volume of business, Chaudet reveals. So what is more profitable for the management, revenues earned from individual guests or bulk customers? “Individual customers booking online are more profitable. When you start dealing with a corporate company, you negotiate the volume and automatically when there is more volume, we decrease the rates, its commercial latitude, I should say. Short stay individual customers who book online are always the most valuable,” Chaudet explains. About 50 to 60% of the hotel’s business is generated by the online travel agents. There are three types of people looking for accommodation, Chaudet elaborates: “The one who wants to stay for long, like six months to one year, because they want to reside for a long term in

Dubai. We expect about 30% of our total business from such clients. Then we have the people who come here for short assignments, like for 2 or 3 months, or to find a permanent accommodation in Dubai. Then there are the short-stay guests, who stay for 1 night up to 2 weeks; people who come for business and leisure trips. One third of our clientele is made up of such people.” As far as promoting the Pullman Hotel in Dubai is concerned, Chaudet says the management has been advertising the product in Dubai. However, worldwide corporate advertising is handled by the parent brand Accor, who strongly promote their hotel offerings globally. “For instance, last year in July, all the Pullman Hotels around the world decided to pool in resources together to promote the brand. So we

have some huge advertising panels in Jeddah, London Heathrow, and other places.”

Faith in Dubai’s hotel market

When asked about his opinion about Dubai’s hospitality market, Chaudet smilingly remarks, “Enchantment, that’s pretty clear.” He believes Dubai is still faring way better than most other global markets, as far as the hospitality sectors are concerned. However he fears Dubai might suffer from oversupply. “Obviously the supply is now coming more and more. The market does not absorb this oversupply of rooms. And it’s new here; it started I should say this year in July-September, when we saw some figures lower than the previous year. And that did not happen since many many years in

Dubai. When we say lower, it is still very good compared to other locations in the world. But with many new hotels, many to open, you see the market growing always at a very good pace. As a consequence of that eventually there will be a stagnation of the average room rates and occupancy; eventually a decrease. Anyway there is still a very good result and considering the activities in Dubai it is still great,” he opines. Pullman will be opening a hotel in Doha, Qatar within a year. The brand already owns a hotel in the holy city of Mecca, and they recently opened a considerably big hotel, comprising 800 rooms, in Medina. In Dubai, Pullman launched a hotel a year back in January, 2014 in Jumeirah Lake Towers, the ‘Pullman JLT’, which Chaudet calls a ‘good hotel’.g Gulf Property

SPOTLIGHT

DP receives award at London forum

eading real estate developer Dubai Properties (DP) has been granted the ‘Best Commercial Real Estate Developer in the UAE’ award during the 11th International Real Estate Forum (IREF) Gala Dinner Awards, on December 16, 2014, at Jumeirah Carlton Tower, Knightsbridge, London. Abdullah Abushabieb, Senior Executive Director of Sales and Customer Service at DP accepted the award on behalf of the company, during the ceremony attended by representatives of major real estate, financial and corporate institutions from across the world. Commenting on the news, Abushabieb said, “Receiving the award for Best Commercial Real Estate Devel-

oper is a great privilege for DP. We are honoured to be recognised by such a reputable and leading institution

benchmarking us against some of the top global real estate companies.” “On behalf of DP, I would

like to express my gratitude to the organisers of this event, as well as the judges who have trusted DP’s capabilities in delivering world class developments and commercial solutions. We will continue working hard to serve Dubai’s real estate industry in the best way possible,” he added. IREF is a leading conference brand in the real estate and related financial services industry specialising in the latest developments in both conventional and Islamic real estate and financing products. DP overseas a varied development portfolio of residential, commercial, retail and hospitality projects across Dubai, creating opportunities for real estate investors and residents. g

maar Hospitality Group, the hospitality and leisure subsidiary of Emaar Properties, has officially opened the doors of Manzil Downtown Dubai, a new upscale lifestyle boutique hotel that celebrates the warmth of Arabian hospitality in a culturally stimulating, techsavvy setting. Managed by Vida Hotels and Resorts, the lifestyle hotel brand for new generation business executives, entrepreneurs and leisure travellers, Manzil Downtown Dubai defines a distinctive niche in Dubai’s hospitality sector by serving as an in-

ternational referral point for an ever-evolving and authentic Arab hospitality experience. Manzil Downtown Dubai is located centrally on Mo-

hammed Bin Rashid Boulevard, the thoroughfare in Emaar’s mega-development, which is described as ‘The Centre of Now.’ Overlooking Souk Al Bahar, the

hotel is in walking distance to Burj Khalifa, the world’s tallest building, and The Dubai Mall, the world’s largest retail and entertainment destination. g

Emaar adds new Arabic theme hotel

E 80

Gulf Property

Aldar awarded ‘Business Finance Team of the Year 2014’ by ICAEW

The Gate Towers in Abu Dhabi

ldar Properties, Abu Dhabi's leading listed property development, investment and management company, announced that its finance team has been named ‘Business Finance Team of the Year 2014’ at the fourth annual Institute of Chartered Accountants in England and Wales (ICAEW) Middle East Accountancy & Finance Excellence Awards 2014. The awards ceremony took place on December 10, 2014 in Dubai under the patronage of HE Sheikh Nahyan bin Mubarak Al

SPOTLIGHT Nahyan, Minister of Culture, Youth and Community Development for UAE This is the second award that the Aldar finance team has won in 2014. In October, they were also named ‘Finance Team of the Year 2014’ at the 8th Annual MENA CFO Strategies Forum. Mohammed Al Mubarak, Chief Executive Officer at Aldar Properties, said, “These awards are testament to the high performance culture that we have instilled at Aldar and the solid team that was formed following the merger. Since that time, our finance team has worked hard to establish an effective operating platform that directly benefit our shareholders.” In 2014, Aldar delivered a number of key and successful projects, including The Gate Towers and Yas Mall in Abu Dhabi. g

SPF Realty wins Property Awards

PF Realty, the leading real estate broker in the UAE’s freehold property sector, has won the International Property Awards 2014 in three categories in the Arabian region. The three categories include, firstly Highly commended Real Estate Agency, Highly commended Real Estate Agency Marketing (for Grand Views – Meydan) and Highly commended Real Estate Agency Website. The International Property Awards are open to residential and commercial property business from around the globe. They celebrate the highest levels of achievement

by companies operating in all sectors of the property and real estate industry. Mahendra Singh, Managing Director of SPF Realty, commented, “We are extremely pleased to receive the prestigious International Property Awards, which is a world-renowned mark of excellence. These three awards acknowledge our reputation as one of the most reliable realty service providers in the regional market. It reflects the strong growth that SPF Realty showcased in the market, driven by our projects of unparalleled quality and value for the investors’ money.” Singh emphasized that the

success of his company lies in its teamwork, “This is a reflection of the trust of the investors and developers in our service standards. It is the collective effort of the SPF

team. We offer our clients a complete and customized service advisory package that assures appreciation and return on investment, the company said in a statement.” The Dubai-headquartered SPF Realty offers solutions to all property-related requirements. The company mainly focuses on real estate sale brokerage and real estate lease brokerage services. gies targeting investors from across the world. The company has always been a winner of several awards and recognitions for its achievements and services in the region’s real estate sector. g Gulf Property

SPOTLIGHT

Developers offer great support to UAE #ShowCompassion campaign

AE real estate developers donated large sums of money to the UAE Show Compassion (Tarahamu) campaign, to support thousands of refugees hit by the ‘Huda’ snow storm in the Levant region. DAMAC Properties donated Dh1 million to the campaign, whereas Nakheel joined the campaign with a donation for Dh2 million to the UAE Red Crescent. The UAE Show Compassion campaign, an initiative of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, has raised more than Dh208 million since it was launched earlier in January. These funds are assisting

Abdulla Ali Bin Zayed, Managing Director, Nakheel Corporate Services presenting the donation to UAE Red Crescent

refugees and others in the Levant and helping them to survive extreme and harsh winter conditions.

Hussain Sajwani, Chairman of Damac donating to UAE Red Crescent

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Abdulla Ali Bin Zayed, Managing Director, Nakheel Corporate Services said, “It is wonderful that the UAE Show Compassion campaign has seen such an overwhelming response from government entities, businesses and individuals across the country. Assisting the refugees is everybody’s responsibility, and Nakheel is delighted to have contributed to this worthy cause in support of these people and the difficulties they face in winter.” The #UAECompassion campaign has already seen an overwhelming response from every area of society throughout the UAE, highlighting the kindness in the hearts of everyone. “It is our humanitarian duty to do whatever we

can for our brothers facing an unthinkable freezing cold winter away from their homes,” said Hussain Sajwani, Chairman, DAMAC. “As a UAE-based company, we are keen to support the philanthropic efforts of H H Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai as they guide us to become a global leader in international support and aid.” The UN High Commissioner for Refugees said that officials had so far received 89,000 blankets from the Emirates as part of the Compassion campaign.The aid will be delivered in coordination with Emirates Red Crescent. g

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