Gulf Property
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VOL. MARC 7, NO. 6 H 2015
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EDITORIAL
22
Dubai says ‘no’ to property registration fee hike
CONTENTS
COVERSTORY
Nakheel boost retail portfolio to make business sustainable 42
GOGREEN
D
Move comes amid rumours of a possible hike in registration fee, despite a lull in the emirate’s real estate market ubai Land Department has done a commendable job by issuing an important statement regarding the rumours of a possible hike in property registration fees, despite a lull in transaction levels and a decline in property prices. In the statement, Dubai Land Department clearly states that it is not considering an increase in property registration fees, which was doubled from two to 4 per cent last year to eliminate speculative elements from the market. The move had its intended effect and helped the property market to stabilise towards the second half of the current year. This will help reassure property buyers and investors and eliminate all speculations of such a move.
As the summer sets in and people packing bags to go on their annual vacation, the low oil price is causing concerns of another slowdown in economic activities. If the current low oil price continues, then government spending on construction projects are expected to decline, which in turn will affect the construction sector. The value of construction contracts have already declined to Dh223 billion in the first six months of the year, compared to Dh311 billion recorded during the first half of last year, according to MEED. So businesses need to watch out for the rest of they year and should look into contingency plans.
However, the good news is, Wasl Asset Management Group is going to roll out clusters of freehold properties which will cater to wider investor appetite and boost the real estate market in the coming months. Abu Dhabi government has issued a new real estate law, that will help its Department of Municipal Affairs to create a property registry and enforce escrow account in the emirate – which will help boost transparency and accountability in real estate.
In this issue, Gulf Property has widened the coverage of the Indian real estate – by creating a section: India Property. From now on, this will be a very strong section within the Gulf Property magazine due to strong interest among non-resident Indians – our largest readership. In the meantime, Dubai’s real estate market is entering another difficult summer of discontent – that might take a heavy toll on many property-related companies if they do not carry out business wisely.
– T. Akhtar
EXECUTIVEOPINION
Samuel Morris/RICS Christian Lagarde/IMF Mohanad Alwadiya/Harbor Abdallah Massaad/RAK Ceramics
COVERSTORY
30,000 buildings in Dubai could undergo green makeover 46 Dubai’s real estate still best for investment returns 50 Meydan Sobha generates Dh10bn from two phases 56 18 19 20
32
ABUDHABI
21
Wasl to announce new freehold projects soon 22
ABUDHABI
Abu Dhabi to announce rental index as part of the new law 32
NEWSUPDATE
Low oil price to reduce construction activities 36 Limitless pays Dh2.07bn debts, differs the rest to 2018 40
68
INTERVIEW
INDIAPROPERTY
DLF banks on Gurgaon’s attractiveness 62 Lodha to deliver world’s tallest residential tower in 2016 64 Mahindra Lifespaces eye Gulf NRIs to lift sale 66 Puravankara builds affordable housing for NRIs 68 Adani seeks NRI money for key projects in India 71 Kalpataru, Dhruthi and JP Infra in major push to lure NRIs 72
REGULARFEATURES Realty Bytes Spotlight
GULF PROPERTY
The region’s premier monthly for lifestyle, real estate, construction and building materials
EDITORIAL
Editor T. Akhtar editor@panasian1.com
Senior Reporter/Sub-Editor Indrajit Sen i.sen@panasian1.com Reporter/Sub-Editor Jipsa George j.george@panasian1.com
PUBLISHER
T. Akhtar Pan Asian Media MFZ LLC
10 78
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 editor@panasian1.com Web www.gulfpropertyme.com
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Gulf Property
9
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REALTYBYTES DLD launches brokers’ app
T
he Dubai Land Department (DLD) recently announced the launch of a mobile phone application for real estate brokers by the name of ‘Dubai Brokers’. The app can be download from both ‘Play Store’ and ‘App Store’.The number of real estate offices in Dubai has reached 1050 and there are more than 2154 effective brokers operating in Dubai's real estate market. The DLD believes this application will be helpful to industry professionals in Dubai, as it allows them to access difference brokers and show different performance levels, check the legal status of real estate offices, and lists the top 10 and top 100 brokers. g
Emaar ME sells Emaar Residences in Makkah
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maar Middle East is presently promoting Emaar Residences, the luxury serviced apartments at the Fairmont Makkah, Saudi Arabia. The developer says the units are ready and few residents have already begun living there. The apartments offer views of the Holy Kaaba, Haram, and the Holy City of Mecca. Located on the Haram Plaza in the tallest tower of Abraj Al Bait, the units are on the 30th to the 41st floors of the Makkah Royal Clock Tower. g
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Gulf Property
DEWA awards 15 contracts worth Dh1.2 billion in 2015
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ubai’s stateowned utility the Dubai Electricity and Water Authority (DEWA) said it has received 18 bids for a long-term project to supply, install, test, and launch 25 substations. The 132kV substations will meet the growing demand in all areas of the emirate of Dubai. Saeed Mohammed Al Tayer, Managing Director and CEO of DEWA, said, “After studying the bids for the stations, and evaluating each bid technically and financially, a report was prepared and approved, awarding contracts for 15 132/11kV substations. The total cost of these stations is Dh1.2 billion. These will be built in Umm Suqeim 3, Naif, Dubai Silicon Oasis, Al Safouh 2, Dubailand, Za’abeel 2, Nad Al Hamar, Jebel Ali Port, Umm Hurair 2, Al Yalayis, and Al Barsha South 1.” Three more stations will be built in Dubai World Central in Jebel Ali for Expo Dubai 2020, he said. The first of these three stations will be completed in 2017 and the other two in 2019. “Additionally, we have completed the final report for awarding contracts for extending 94km of 132kV ground cables at an estimated cost of Dh435 million. We are also studying and reviewing bids for a project to implement 132/11kV substations over the next 4 years,” Al Tayer said. “In 2015, DEWA commissioned 4 132kV substations by extending additional 12.5 kilometres of ground cables at a cost
Saeed Al Tayer, Manaaging Director and CEO of Dubai Electricity and Water Authority, delivers a speech
of Dh430 million. This has increased the number of 132kV substations in operation to 205. Other projects that DEWA is currently implementing include 34 132kV substations in different areas of the Emirate. We harness excellence and creativity in our daily work to improve performance and efficiency. We also work to provide excellent government services and adopt the best international practices to achieve the highest levels of people’s satisfaction and happiness,” Al Tayer further said.
Meanwhile, DEWA has reported Dh5.48 billion profits after tax, debts, depreciation and interest while it also invested Dh3.61 billion in capital expenditure in 2014. However, its profits attributable to the Dubai Government are Dh5.36 billion. The organisation has a healthy balance sheet and its last year’s financial report shows that the public sector utility has become a solid state asset contributing to the growth of the emirate. g
DEWA starts Dh108 million water transmission project
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EWA has started a Dh108 million project to supply, extend, and launch a 16 kilometre water distribution network between Jebel Ali and Al Quoz. Al Tayer said that the project is expected be completed in September 2016. “The project includes extending the 1,200 mm Glass Reinforced Epoxy water transmission pipeline by a further 16 kilometre,
from Jebel Ali, through Al Khail Road, to the pumping station complex in Al Quoz. It also includes a remote control and monitoring system to enhance transmission capacity. The project includes connecting the main transmission lines to increase water flow and meet increasing demand in those areas according to approved plans,” Al Tayer said. g
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Hilton, wasl in deal for two hotels in Dubai
H
ilton Worldwide and wasl hospitality and leisure, a subsidiary of wasl Asset Management Group, recently announced agreements to open a further two mid-market hotels in Dubai, Hampton by Hilton Dubai Al Mina and Hilton Garden Inn Bur Dubai. Hilton Garden Inn Bur Dubai will feature 292 guest rooms and be located in a prime area of Dubai Creek, within walking distance of the popular tourist attraction, Souk Al Kabeer. Facing the Creek, the hotel will feature two food and beverage outlets; a large multi-functional meeting room; 24-hour business center and Pavilion Pantry; as well as a swimming pool and health club. Hampton by Hilton Dubai Al Mina, the second Hampton by Hilton, will be located near Dubai International Airport,
Aldar launches sales for Meera Shams Abu Dhabi
A
ldar Properties PJSC, the Abu Dhabi-based real estate developer, launched sales for its Meera residential development in Shams Abu Dhabi on Reem Island at a two-day sales event at the Crowne Plaza Abu Dhabi, Yas Island, on June 13 and 14. Meera features two 26storey towers overlooking a landscaped park, with 408
Hesham Al Qassim, CEO of wasl seen with Hilton official, after signing the deal
Dubai Creek and the Port Rashid area. The property will feature 206 guest rooms, with breakfast area, a bar and gathering zone, a gym and swimming pool. Hilton Garden Inn Bur Dubai and Hampton by Hilton Dubai Al Mina are both ex-
pected to open in early 2019, adding almost 500 additional rooms to Dubai’s mid-market inventory. In the Middle East, Hilton Garden Inn will make its Dubai debut in 2015 with the opening of hotels in Al Mina and Al Muraqabat. g
REALTYBYTES
Indigo delivers two projects in Int’l City
D
ubai-based Indigo Properties has announced the completion and delivery of units in Indigo Spectrum 1, a 2B+G+7 residential development located in the Commercial Business District, in International City. The 166,000 square feet development features 1 to 3 bedroom flats. The building, which the developer says was ‘sold out off-plan’, has apartments ranging from 816 square feet to 2900 square feet, with prices starting at Dh725 per square feet for apartments and Dh950 per square feet for shops. Indigo Properties is also set to shortly deliver units in Indigo Optima1, the only commercial project in International City. g
Raine & Horne sees ‘renewed interest’ for Palm project
P
one, two or three-bedroom apartments. Prices start from Dh900,000 for 1 bed-
room, Dh1,200,000 for 2 bedroom and Dh1,600,000 for 3 bedroom. g
roperty brokerage firm Raine & Horne Dubai says it is currently seeing ‘renewed interest’ in the Anantara Residences Dubai The Palm, the residential project by luxury developer Seven Tides. Raine & Horne is promoting a selection of furnished 1BR apartments, plus a number of 2BR apartments, priced from Dh2.625 to Dh3.99 million and ranging in size from 1,158 to 1,771 square feet. g Gulf Property 11
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REALTYBYTES
Diamond Developer, US university join hands
D
iamond Developers, the realtor building Dubai’s first sustainable community project The Sustainable City, is extending its relationship with the University California Davis (UC Davis), to fund academic and applied research on sustainable development. The two entities had already signed an MoU in February 2014. The new collaboration between Diamond Developers and UC Davis extends further, including the development of a professional training program in sustainability with an online curriculum; and the development of sustainability performance indicators which will be relevant to arid climates. g
MAG Property Development opens Dubai sales centre
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ubai-based MAG Property Development (MAG PD) has announced the opening of its first ever sales centre for the UAE. The new 9,000 square feet office is located at the Podium Level of Emirates Financial Towers, DIFC, Dubai. A key feature of MAG PD’s new centre is its ‘mockup’ zone that features high quality scaled reproductions of the company’s projects. g
12
Gulf Property
Damac awards Dh2.8 billion worth of contracts in 2015
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ubai-based luxury developer Damac Properties has already awarded more than Dh2.8 billion in construction contracts in the first five months of 2015. Awards include the main works packages of more than 1,500 villas within its luxury lifestyle community, Akoya Oxygen, three new apartment blocks at Akoya by Damac and the main contracts for three of its hotel apartment’s projects, Damac Maison Privé, Naia Vantage and Naia Celestia. Ghantoot Gulf Contracting has been awarded the package to build 981 villas at Akoya Oxygen, while Lootah Building and Co. will start work on building the 547 villas. Seidco General Contracting has been awarded the contract to build three G+7 complexes at Akoya by
Damac, with Pivot Engineering receiving a main works package for the 239 villas in Akoya Park. Civilco Civil Engineering and Contracting Co has been awarded the main package to build Naia Celestia in the Dubai World Central District, Damac Maison Privé will be built by Seidco General Contracting and NAIA Vantage has been awarded to Reem Capital Contracting. On the other hand, Damac Properties has also launched
‘Paramount Residences at the Paramount Tower Hotel & Residences’, an 826 keys project on Sheikh Zayed Road. The 64-storey tower will offer amenities such as a private Paramount Pictures screening room. Construction has begun, with completion scheduled for Q3 2019. Prices for the residences, which will be on the 36 to 64th floors, will start at Dh1,800 per sq ft. g
ubai Investments PJSC (DI), an investment company, has completed acquisition of 59.66 per cent stake in Al Mal Capital which when allied to the 1.20 per cent already held by the company, equates to an overall shareholding of 60.86 per cent. Established in 2005, Al Mal is a diversified invest-
ment institution, licensed and regulated by the Central Bank of the United Arab Emirates and headquartered in Dubai. Al Mal offers a wide range of investment products spread across its business lines of investment banking, brokerage and asset management. ‘The acquisition paves the way for DI to enter the financial services sector and adds a strategic element to its di-
versified investment base’, DI says in a media statement. Al Mal recently held its first board meeting post-acquisition, during which the company’s strategy and growth plans were discussed. The Board also gave the go ahead for appointment of a consultant to work on aligning Al Mal’s strategy with DI requirements. g
D
DI acquires 59.66% in Al Mal Capital
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Louvre Abu Dhabi on track
REALTYBYTES
Palma sells 70% of Phase 1 Serenia Residences
P The Tourism Development and Investment Company’s Chairman Ali Majed Al Mansoori and Arabtec’s Chairman Mohamed Thani Murshed Al Rumaithi toured Louvre Abu Dhabi’s construction site. The officials witnessed advanced cladding work on the museum’s external facade, which comprises more than 4,680 pieces, 3,821 of which are unique. Louvre Abu Dhabi’s construction was awarded to an Arabtec-led JV with Constructora San Jose SA and Oger Abu Dhabi LLC in 2013. Designed by Jean Nouvel, the museum will feature a Permanent Gallery, a Temporary Gallery, a children’s museum and an auditorium
DSI bags Dh350m Oman contracts in Q2 2015
D
rake and Scull International PJSC (DSI) has announced that Drake and Scull Engineering Oman, its subsidiary, has secured a series of contracts for a combined value of Dh350 million. Under the terms of the agreements, DSE Oman will deliver the Mechanical, Electrical and Plumbing (MEP) works on the Oman Convention and Exhibition Centre in Seeb, two hotels in Saraya Bandar Jissah near capital Muscat, and an airport hangar related facility. The scope of works for the Oman Convention and Exhibition Centre MEP works
spans a 3,100-seat central auditorium; a 455-seat secondary auditorium; the Grand Ballroom with 1,350 banquet-style seating; a 500seat food court with seven themed food production outlets; 28 meeting rooms including nine rooms formed by sub-dividing the ballrooms; and administration offices for the facility operators and external works. Completion is scheduled for 2017. DSE Oman will also undertake the supply, installation, testing and commissioning of core MEP systems for two 5star beachfront properties at Saraya Bandar Jissah, near Muscat. DSE Oman’s work
on the first hotel complex will cover the main hotel building, seven three-storeyed typical hotel clusters, 4 one-bedroom villas, 4 two-bedroom villas, a speciality restaurant, a pool juice bar, and an ancillary building. DSE Oman will also deliver MEP works for the second 5star hotel which will cover the main hotel building; 7 villas; main car park structure and substation; pump station and LV room; pool bar and grill; dive centre; store for pool chemicals; and vehicle maintenance. The hotels are expected to be handed over by 2017 and 2016 respectively. g
alma Development said, it has already sold 70 per cent of Phase 1 at Serenia Residences, the sole residential-only community on Dubai’s Palm Jumeirah Crescent. The developer, launched the property onto the market on May 5, 2015, with the first phase comprising its North & West Wing. The Dh1.5 billion-worth Serenia Residences is an 850,000 square feet development comprising 250 units, with one to 4BR apartments ranging in size from 904 square feet to 4,144 square feet as well as penthouse suites, the largest of which covers 12,648 square feet. g
Time Hotel strives to reduce energy consumption
U
AE-based hospitality company, Time Hotels Management has partnered with energy services company Smart4Power to reduce energy use at a number of its UAE properties. A Smart4Power initial energy audit revealed that window and split ACs were responsible for roughly 60 per cent of total energy consumption at the company’s six Dubai and Sharjah properties. g Gulf Property 13
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REALTYBYTES
ADIB launches promotional scheme for Ramadan
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bu Dhabi Islamic Bank (ADIB) recently announced that it will be postponing monthly repayment instalments for personal and auto finance customers during the holy month of Ramadan. The payment break is being offered to ADIB customers to provide cash-flow relief during Ramadan. This offer is in line with other initiatives ADIB has launched to help customers manage their dayto-day finances, including their financial education campaign named ‘Smartmoney’. g
Mashreq Bank, Ajman Sewerage sign direct debit deal
A
jman Sewerage Private Company Limited (ASPCL) and Mashreq Bank have penned a Direct Debit deal, giving all ASPCL customers a convenient option to remotely offset their monthly bills. According to ASPCL, any customer who has a bank account will benefit from this service. The Direct Debit service will eliminate the need for customers to physically visit any of their Customer Service centers to pay their bill thus saving them time and money. g
14
Gulf Property
Ilyas & Mustafa Galadari awards contract to McFadden
I
lyas & Mustafa Galadari Real Estate Co LLC has awarded a contract to the McFadden International Construction Group, to lead the ongoing development and construction of its luxury project ‘Avenue 353’, launched in March 2015. McFadden International Construction Group has worked on residential,
commercial and institutional construction projects. Avenue 353 features villas - each including four floors with underground parking, a private villa elevator and spectacular open-terraced rooftop gardens. The villas are available for sale at ‘competitive prices’. Each villa at Avenue 353 includes several unique design elements such as a fully
functional basement level that comes equipped with a maid’s room, laundry and store, besides a sizeable additional space for a cinema room and gym or auxiliary kitchen. The villas also comprise a hidden mezzanine floor housing a private guestroom. The freehold property is set in a gated community in the City of Arabia. g
$640mn
amount for which Arcapita has sold its real estate portfolio of senior care communities in the US to an REIT
10-17 Realty Bytes_Layout 1 30/06/2015 22:11 Page 6
Fortune 5 launches AG Tower in Business Bay
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ubai-based real estate brokerage firm Fortune 5 in June launched the sales campaign for AG Tower, a residential project in Business Bay. The tower, being jointly developed by Arabian Gulf Properties and Time Properties, will comprise 23 floors and 437 apartments. Apartment sizes start from 460 square feet for studios, 870 square feet for 1-bedroom apartments, 1370 square feet for 2-bedroom apartments and 1,700 square feet for 3-bedroom apartments. The tower ‘with striking architecture has contemporary interiors, and each apartment is expertly designed for an exclusive urban lifestyle’, Fortune 5 says in a statement to the media. The tower offers a variety of picturesque views of the Dubai landscape, from Godolphin Stables to the West, to views of the Dubai Water Canal and the city to
Bloom Properties launches Abu Dhabi hotel apartments
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bu Dhabi-based real estate developer Bloom Properties launched sales for its furnished hotel apartments project in June. The project, part of Park View mixed-use development in the university neighbourhood of Saadiyat in Abu
the north. The developer is offering residents the liberty to customize their apartments and interiors as per their requirements. Once completed, res-
idents will have access to a
Dhabi, will feature 188 apartments comprising studios, 1 and 2 bedroom units. Bloom Properties is assuring a guaranteed net yield of 7 per cent per annum for the first 3 years of operation of the project. Rotana Hotel Management will operate the project under an agreement signed with Bloom Properties earlier this year. Prices for the serviced apartments start from Dh850,000, the company said in a statement. The project is located close to major road networks linking Abu Dhabi’s
key tourist destinations on Saadiyat and Yas Islands. The project will also offer commercial and leisure facilities including retail outlets, restaurants, a swimming pool, a gym and a fitness centre. “What makes this project a truly unique investment opportunity is its central location on Saadiyat Island,” Sameh Muhtadi, CEO, Bloom Properties, said. “Additionally, we offer our customers good design, and views, and a wide range of amenities and facilities that ensure convenience.” g
full suite of amenities includ-
ing a separate male and female gym, a sauna and a swimming pool. g
REALTYBYTES
Town Square promotes sale through social media
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own Square, the affordable housing master development in New Dubai, has launched a social media campaign to win a 2-bedroom apartment. ‘All you have to do is post a video using your smartphone capturing a special moment in your life, post it on social media channels including Facebook, Twitter, Instagram, Google Plus and YouTube with the hashtag #WinTownSquareDXB to win an apartment in Town Square’, a statement from developer Nshama reads. Anyone above 18 years can take part in the campaign by posting original videos of 15 to 45 seconds duration. Video submissions close on August 15 at 9pm UAE time. The posted videos that receive more than 10 ‘likes’ will be evaluated by a jury to choose the most popular ones to enter the second round of the competition. These will be posted on www.nshama.ae, and the top 10 finalists who receive the most ‘likes’ will be short-listed. They will be invited for a face-toface interaction with the jury and one winner will be chosen to ‘start a new life’ at a two-bedroom apartment in Town Square. g
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Farnek wins ‘multi-million dirham’ service deals
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ubai-based facilities management company Farnek has signed two new ‘multi-million dirham’ contracts with global database software leader Oracle and UAEbased Place Management, to provide cleaning, maintenance and support staff in Dubai. Farnek’s 3-year contact with Oracle’s Middle East Head Office, located in Dubai Internet City, which started in June, includes housekeeping services, the provision of office attendants and customerfacing office staff. g
Tabreed to buy back 28% of Mubadalaheld shares
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hareholders of National Central Cooling Company PJSC (‘Tabreed’), the Abu Dhabi–based regional district cooling utility company, recently approved the proposal presented by the company’s Board of Directors to buy back 28 per cent of the mandatory convertible bonds held by Mubadala. The buyback resolution, of the equivalent of 854 million bonds at a cost of Dh1 billion was approved by shareholders who form 55 per cent of Tabreed’s capital. g
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Dubai to host show for affordable homes
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ubai will play host to the first ever Affordable Home Show in November 2015, organisers said. The Affordable Home Show will be the first and only family exhibition focused on affordable housing in Dubai, showcasing the best offers and packaged discounts in affordable homes. In addition, visitors can take advantage of browsing the outdoor exhibition covering financing, insurance, facilities management, furnishings, interior design, landscaping, furniture, swimming pools, consumer goods, home appliances and everything in-between. Worldsouq, organisers of the event said: “The Affordable Home Show offers a unique platform for visitors to understand what is available to them with all the key developers in one place. In UAE we are seeing a clear shift towards people desiring to stop renting and finding an affordable home to buy within their budget.”
ASGC projects on track for completion by 2016
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l Shafar General Contracting Co. (ASGC), the UAEbased construction group, said, its existing projects with Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi Gas Development Company
The Show is responding to the need for an event dedicated to affordable homes and home-ware in the Middle East. The UAE has seen huge growth in residents looking to buy, with 70 per cent of potential buyers looking for financing, and 46 per cent looking to buy immediately. Ltd (Al Hosn Gas) are on track for completion by 2016. These projects, awarded in 2014, include a Dh156 million project with ADNOC to build a 206-room guest house and supporting facilities in Al Ruwais and an Dh164 million contract with Al Hosn Gas to construct a compound and residential accommodation complex in Qusahwira. “We are capitalising on sector opportunities across the region and are continu-
66 per cent of purchasers are looking to buy for personal use. Furthermore, the show will also provide consumers with great features to make it an enjoyable family day out. Exhibitors at the show can market and sell their new developments, products and offerings to a vibrant crowd of show-goers. g ing to broaden our business as we move our construction expertise into residential and hospitality components of the oil and gas sector,” Bishoy Azmy, CEO of Al Shafar General Contracting Co. LLC, said. Founded in 1989 in Dubai, ASGC has worked on more than 250 projects and has developed a deep understanding of the local construction market with a reputation for consistently delivering high-quality projects. g
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Dubai says ‘no’ to property fee hike
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ubai Land Department has quashed rumours of any hike in property registration fees, currently fixed at 4 per cent, a statement issued on June 29, said. “Dubai Land Department has confirmed that real estate registration fees that are currently set at 4 per cent will not be increased. It has also stated that it does not plan to raise the charges, which are collected from dealers to complete their real estate transactions, in the near future,” the statement said. The Department stressed
that decisions to increase the various fees relating to real estate are issued by Dubai Executive Council. The Council issued resolution No. (30) of 2013 to determine the value of real estate fees, including real estate registration charges. Sultan Butti Bin Mejren, Director General of Dubai Land Department, discounted what he said were rumours relating to a real estate registration fee increase. “A number of market players are talking about alleged reports that Dubai Land Department will be increasing
real estate registration fees from 4% to 8%. This is a baseless rumour and only serves to encourage the return of speculation. It confuses buyers and needlessly compels them to speed up their purchasing decisions,” he said. He advised those in the market with an interest in selling property to follow professional methods on a competitive basis when promoting their properties, such as focusing on price and quality. He also added that the real estate market in Dubai is stable and is enjoying sustainable growth, meaning that
REALTYBYTES there is no requirement to revisit the fees for various activities and servicing in the near future. In September 2013, Dubai Land Department implemented Dubai Executive Council’s resolution to increase the real estate registration fees from 2 to 4 per cent. The charges are paid by the seller and the buyer equally unless otherwise agreed between the two parties. Through implementing this resolution, the Department succeeded in eliminating speculation that was challenging the market. Bin Mejren also confirmed a deadline extension for real estate developers and investors to register their properties in the Dubai Land Registry up until the end of October 2015. g
Time Invested e iss our Measu ure of Suc ccess
PROPERTIES
The Grro QUALITY MANAGEMENT SERVICE
DEVELOPMENTS L.L.C.
PROJECT DEVELOPMENT
BROKERAGE
I N V E S T M E N T
MEMBER
18 RICS_Layout 1 01/07/2015 05:34 Page 1
OPINION
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SAMUEL MORRIS FRICS
Head of Valuation and Acting Head, Dubai Office MPM Properties
ith almost seven years working in the Middle East, I am amazed to see that many banks, developers, investors and alike are still willing to accept substandard valuation reports from non-qualified valuation firms! These stakeholders have not heeded the hard lessons learnt from the 2008 crash and this opens all parties up to excessive and unnecessary risk. Non-qualified valuation firms are not bound by any ethical, technical, or compliance standards and can report as they like with no set parameters, definitions or transparency, often over-inflating valuations based on sentiment, with no facts, which can lead to major financial implications down the road. Let’s start with the lenders. Many institutions continue to allow non-real estate qualified staff, who do not understand the fundamentals of real estate, to approve real estate finance. These staff members only care about the valuation number and do not
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Importance of a property valuer understand the bases of value, methodology adopted and cannot identify the key risks involved with real estate financing. This continues to expose Middle East banks to continued high levels of real estate exposure. For example, in the unfortunate event of an owner defaulting on their property loan, a bank may step in to repossess / recoup the loan amount, however, if a bank has approved finance at the maximum loan amount off the back of a non-transparent and over inflated valuation, the bank may never recover the total loan amount issued – but many non-qualified loan approval staff within local banks still do not care about what may happen down the line, only that their deal is approved and they get paid their commission. On the investor/developer side, if a non-qualified Valuer provides a high valuation, the stakeholder may receive the funds to develop a property, however, they may not be able to repay the project finance as a result of lower sales revenues than forecast. It is therefore essential that a qualified Valuation Professional undertakes your valuations and the below sets out some reasons why: Basis of Value: It is imperative that the instructed Valuer has sufficient knowledge and experience to determine the bases of valuation that the client requires and also has enough experience to be able to undertake the valuation itself within the agreed criteria.
The two main bases of valuation are: Market Value: This definition ignores the possibility of a special purchaser which non-qualified Valuers may include. The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.” Calculation of Investment Value: This is not a valuation but a subjective estimate for a client using inputs which are generally unique to that party. Nonqualified valuers may adopt Clients specific assumptions and incorrectly state they are reporting market value. Why are qualified Valuers therefore required? A qualified valuation professional will only proceed following three important steps: (1) checking they are competent, (2) undertaking a conflict check, and (3) agreeing terms of engagement in writing prior to commencing, clearly stating all assumptions and special assumptions that will be adopted. A qualified valuation professional will adopt the correct methodology for the purposes and is duty bound to include a minimum set of requirements within their reports to ensure consistency, accountability and transparency – this includes comparable evidence. So, what are the dangers of using a non-professional
valuer? – Firstly, opinions of value for agency purposes do not constitute formal valuations. Secondly, non-professional valuers may have no formal valuation training or experience and are not bound by any professional standards, conduct or ethics and do not belong to a professional body. Therefore, many of these ‘rouge valuers’ provide customers with their opinions of ‘best marketing price’ as opposed to market value, basing they estimation purely on sentiment and hear-say rather than tangible evidence. Non-professional valuers are also not duty bound to support their opinions of value with any comparable evidence or justifications which can lead to speculation, conjecture and guesswork. Personal Indemnity (PI) Cover – another key risk for clients is PI cover. Non-qualified valuers may not have the correct, if any, PI Cover in place should they find themselves facing a law suit / negligence claim. To summarise, stakeholders across the region are beginning to wise up to the benefits of instructing qualified professional valuers who will follow strict guidelines and procedures, act with honesty, integrity and objectivity, and provide them with the correct advice for their purposes, providing fully transparent, supported and accountable reports that are fully compliant with the International Valuation Standards. g
19 Christine Lagarde_Layout 1 01/07/2015 04:06 Page 1
The world needs equitable growth
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ast month, on May 6, I almost choked on my morning yoghurt when I saw the front page of a leading business newspaper. There it was – a league table of the world’s best paid hedge fund managers. It showed that the highest earner was able to pocket $1.3 billion in 2014. One man, $1.3 billion! Together, the 25 best-paid hedge fund managers earned a combined $12 billion last year, even as their industry suffered from largely mediocre investment performance. This reminded me of a famous Wall Street joke – about a visitor to New York who admired the gorgeous yachts of the richest bankers and brokers. After gazing long and thoughtfully at these beautiful boats, the visitor asked wryly: “Where are the customers’ yachts?” Of course, the customers could not afford yachts, even though they dutifully followed the advice of their bankers and brokers. Why is this relevant right now? Because the theme of growing and excessive inequality is not only back in the headlines, it has also become a problem for economic growth and development. I would like to take an economic perspective on this. I will not focus on the gorgeous yachts of the super-rich, who have become the face of a new Gilded Age. It is not immoral to enjoy one’s financial success. But I would like to bring into the discussion what I would
call the “small boats” – the livelihoods and economic aspirations of the poor and the middle class. In too many countries, economic growth has failed to lift these small boats – while the gorgeous yachts have been riding the waves and enjoying the wind in their sails. In too many cases, poor and middle-class households have come to realise that hard work and determination alone may not be enough to keep them afloat. Too many of them are now convinced that the system is somehow rigged, that the odds are stacked against them. No wonder that politicians, business leaders, topnotch economists, and even central bankers are talking about excessive inequality of wealth and income. And these concerns can be heard across the political spectrum. In the United States, for example, President Obama and Republican leaders in the Congress agree that this is one of the defining issues of our time – one that needs not only a diagnosis but a cure. My key message is this: reducing excessive inequality – by lifting the “small boats” – is not just morally and politically correct, but it is good economics. You do not have to be an altruist to support policies that lift the incomes of the poor and the middle class. Everybody will benefit from these policies, because they are essential to generate higher, more inclusive, and more sustainable growth. In other words, if you want
to see more durable growth, you need to generate more equitable growth. Let me start by describing the global economic weather map, as we see it. According to the IMF’s spring forecast, the global economy will grow 3.5 percent this year – about the same as last year – and 3.8 percent in 2016. Advanced economies are doing slightly better than last year. In the US, the outlook still is for a strong expansion – the weak first quarter was just a temporary setback. Prospects in the Euro Area are improving, partly because of monetary easing by the European Central Bank. And Japan seems to finally reap the first rewards of its “three arrows” recovery strategy (monetary, fiscal, and structural). Forecasts for most emerging and developing economies are slightly worse than last year, mainly because commodity exporters are affected by price declines, especially for oil. And recent data releases have reinforced this picture. But there is a tremendous diversity of national trends – from still strong growth in India to recession in Brazil and Russia. So the good news remains that the global recovery continues. But growth remains moderate overall and uneven across countries. What about the years beyond 2016, the second half of this decade? Well, here is where I have to share some not-so-good news with you. Our view at the IMF is that the growth potential of both
OPINION
CHRISTINE LAGARDE
Managing Director International Monetary Fund
advanced and emerging economies is likely to be lower in the years to come. This is partly because of changing demographics and lower productivity. Our concern is that this will bring more challenges in the labour markets, less-solid public finances, and slower improvements in living standards. This is the “new mediocre” about which I have been warning. For the “small boats”, it means that the wind is picking up, but it is not strong enough to reduce high unemployment. It is not strong enough to bolster middle-class incomes and drive poverty reduction. It is simply not strong enough to lift the “small boats” – even as the yachts are enjoying the breeze out on the high seas. So, what is going on? Are we to resign in the face of unfavourable weather? Is there no hope for the captains of the “small boats”, whether they are here in Belgium or anywhere in the world? The short answer is: there is hope, but to see it, we need to step back and look at the global picture before we zoom in on the country and micro level. g Gulf Property
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OPINION
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MOHANNAD ALWADIYA
Managing Director of Harbor Real Estate, Instructor and Advisor at the Dubai Real Estate Institute
ince the UAE real estate recovery beginning in the latter part of 2011, and reaching peak levels early in 2014, there has never been a time like the present to, once again, consider vigorously investing in real estate. As the current market slowdown promises to continue well into the year, and with property prices at their most attractive, the shrewd investor would take it upon himself to ensure he gets on the real estate bandwagon now… and fast! After all, the property investment wave waits for no one. And it is only the most discerning of investors who can spot an opportunity even as everyone else does not see it, or would prefer to play the waiting game. But let the facts speak for themselves. There have been a number of reports recently estimating the effect of the correction on the Dubai real estate market. The most recent forecasts a reduction of anywhere between 10 and 20 per cent by the end of 2015. What great news!!! The opportunities that have emerged so far in 2015 and
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Time to invest in real estate will continue to emerge as the year progresses will be too good to pass up. Oil prices aren’t expected to go anywhere soon, the decline of the Russian ruble has effectively made offshore investing too expensive, there is a growing oversupply and the inevitable interest rate increases on the US dollar, and its AED cousin, will further hamper liquidity. While these considerations are valid and worth considering, we need to consider the following: Put simply, Dubai needs people to support an economy that is expected to grow at an estimated 5+ per cent annually for the remainder of the decade and to deliver initiatives such as the World Expo 2020. The Expo alone is expected to generate an additional 270,000 jobs and drive demand for housing and commercial facilities that, by and large, don’t currently exist. Much of the city’s planning comprehends the number of people living in the emirate to grow to 3.4 million people by 2020, a 7 per cent annual increase from today’s population of 2.25 million. While the price of oil is a big issue for the region’s economies, with oil representing only about 4 per cent of Dubai’s GDP, the effect of the decline in oil prices is not as drastic as some may think. Dubai’s economy is being driven by fundamentals such as tourism and trade and a slew of new projects to grow these important
revenue generating economic segments. Dubai’s attracted almost 12 million visitors in 2014, continuing a growth trend of approximately 9 per cent per annum since 2010. And those visitor number will seem paltry once the Expo 2020 momentum kicks off. And the 277,000 extra jobs that are generated to ensure the estimated 20 million visitors to the Expo see Dubai in its most favourable light cannot be underrated in terms generating significant demand for Real Estate assets. Hosting the World Expo will provide additional impetus for the industry to enjoy continued growth and the predictable surge in demand for accommodation and commercial space of all types, from labor camps to offices to warehouses to apartments to executive Villas, is sure to have a significant effect on property values. We all know that the ongoing speculation surrounding the US Federal Reserve’s intention to raise interest rates is making many people nervous. However, we can be sure that Interest rates in the US will eventually rise and the AED will continue to get stronger. To invest in a market that is undergoing a 10 to 20 per cent correction in a currency that is certain to appreciate only makes sense... but you better move fast. And while on the topic of certainty, there is no doubt that a stabilised real estate market will provide a much
better launch pad for what will be a period of significant economic and commercial activity over the next 5 to 7 years. The structural shift towards more affordable housing will not only serve to accommodate the expected rapid population growth associated with the Expo 2020, but also serve as an important factor in the development of the Dubai economy overall. Every emerging economy needs to develop a strong middle class as its expansion is critical to growing a sustainable economy and developing resilience in the face of external financial shocks. In addition, for Dubai to compete effectively on a regional and global basis, it needs to ensure that the cost of doing business in the emirate does not position it as an outlier when entrepreneurs are considering alternatives for their operations. And talking of alternatives, there is an array of asset choice which hasn’t been seen for some time. The availability of off-plan purchases with highly lucrative payment plans is unprecedented. Whether it’s an affordable studio or a luxury villa, there are investment opportunities in every segment of the market supported by the most affordable payment plans seen in years. However, if its superior yield with minimal capital outlay that you are after, Dubai Real Estate is still hard to beat. 2015 will be remembered as the year of the astute investor. g
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Technology and innovation key to success
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nnovation, in all its grammatical forms has been a key buzzword for the 21st century and is considered to be a crucial part of any business strategy for organisations wanting to stay ahead of the curve. The UAE was amongst the very first within Arab countries to embrace innovation and utilise it to its fullest. The country has big plans to become one of the most innovative nations in the world and launched the National Innovation Strategy in October 2014 as testament to its commitment to innovation. As a result, 2015 was declared the ‘Year of Innovation’, and marks a stepping stone for the country that is working towards its Vision 2021 for Dubai and 2030 for Abu Dhabi. The strategy is designed to foster innovation in seven main sectors – renewable energy, transport, education, health, technology, water and space. In recent years, the UAE has gone to great lengths to diversify it’s largely oil and gas based economy. The new focus on innovation and technology development is designed to move the UAE towards becoming a more sustainable, non-oil diversified and knowledgebased economy.
Technology key to Competitiveness
The key to customer satisfaction is anticipating people's needs before anyone else and developing new technologies and innovative solutions that provide customers with a distinct competitive advantage. Being a technology leader means staying a step ahead at every turn. To be competitive in the global marketplace, organisations need to be driving more innovation in their products and services, according to a report, ‘How to drive innovation and business growth’ by global accounting firm PriceWaterhouseCooper in 2012. Even during the recession, CEOs were already focused on growth, and they expected technology to be the main enabler of innovation. In fact, most CEOs were looking to use technology to gain both efficiencies and differentiation simultaneously. A survey also conducted by PwC in 2011 found that 80 percent of CEOs believed innovation drives efficiencies and leads to competitive advantage. For most of them, technology is one way of capturing both. Close to 70 percent of CEOs surveyed were investing in IT to reduce costs and to become more efficient,
while 54 percent were also funnelling funds toward growth initiatives that leverage emerging technologies such as mobile devices and social media.
Functionality to Fashion
At RAK Ceramics we invest heavily in research, development and the latest technologies to ensure that we remain at the cutting edge of ceramics’ production globally. Our innovative approach has made us one of the largest players in the field, evolving from being a manufacturer of functional ceramics’ products to become a comprehensive producer of quality, lifestyle solutions. It is this commitment to innovation which has been fundamental to our success and something I plan to continue as part of our long term strategy. Our sanitaryware and tableware plants are equipped with state-of-theart high pressure casting machines and robotic spraying technology allowing us to produce high quality pieces with a consistently impeccable finish. RAK Ceramics is the first manufacturer in the GCC to introduce Continua+ technology enabling us to manufacture large format Porcelain+ surfaces such as Maximus
OPINION
ABDALLAH MASSAAD
Chief Executive Officer RAK Ceramics
Mega Slab. These large format tiles are twice as strong as traditional porcelain and can be used on walls, floors and façades or to replace kitchen counters or bathroom vanity units. Their large size, extra strong breaking strength and reduced grout lines allows for greater flexibility when it comes to installation and a more aesthetically pleasing finish with fewer design interruptions. Other innovations we have invested in include Luminous, our glow in the dark series – a technology which unlocks the potential for a wide range of applications and Antimicrobial, a hygienic easy to clean tile especially suited for use in schools, healthcare facilities or the hospitality industry. Here at RAK Ceramics we will continue to keep an open mind, a sharp eye to identifying opportunities and a deep passion for growing into being not only a global industrial company but a lifestyle brand that is a first choice for agents, distributers, contractors and end-users alike. Innovation is what continues to drive and inspire us and I believe it will ultimately help us to remain an industry leader. g Gulf Property
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wasl to launch more freehold projects COVERSTORY
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Gulf Property Exclusive asl, the largest asset management company in Dubai, will announce more freehold projects in the coming months, following the successful launch of the Hyatt Regency Creek Heights Residences, a top official told Gulf Property in an exclusive interview. wasl has recently unveiled a number of projects approved by Dubai government within the last few months that, once built, will help meet the growing demand for homes. wasl Asset Management Group, part of the stateowned Dubai Real Estate Corporation (DREC), last year announced its foray in the freehold market by launching Dubai Creek Heights which was almost sold out at launch in December last year. The company, which has more than 30,000 residential units currently under management, has also unveiled a number of projects. Zainab Mohammed, Chief Executive Officer of wasl Proper-
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ties’ Property Management and Marketing and Communications, told Gulf Property, that her company will make announcements on new projects in the coming months. The interview comes a few months after His Highness Sheikh Mohammed Bin Rashid Al Maktoum, VicePresident and Prime Minister of the UAE and Ruler of Dubai, unveiled three major projects, to be developed by wasl, namely, wasl Gate, wasl Park and wasl Tower, in which she elaborates wasl’s future game plan. wasl has also recently started selling freehold plots at Nad Al Hamar Gardens to investors to build freehold homes near Nad Al Hamar on Mohammed Bin Zayed Road. These moves are expected to boost Dubai’s real estate market – which is witnessing a temporary lull in transactions. In an exclusive interview with Gulf Property, she elaborated her thoughts on the new projects and the overall market situation in Dubai’s freehold property. Excerpts:
Gulf Property: How was the first freehold property launch experience for
wasl and your team? Was the Hyatt Regency Creek Heights Residences completely sold out – or are there still some units available for sale? Zainab Mohammed: We had a very good response at the launch. The first phase which was offered for sale was completely sold out in a few weeks, thanks to the efforts of our sales team. I would like to mention a few highlights about this particular project. It is situated at the heart of the city and walking distance from Dubai Creek and the Creekside Park, Dubai Healthcare City and Wafi Shopping Mall. It is only ten-minutes driving time from Dubai International Airport and Burj Khalifa. When it comes to location, Hyatt Regency Creek Heights Residences can't be bettered in terms of its proximity to the city's major areas and its strategic position between old and new Dubai. Hyatt Regency Creek Heights Residences is currently the only ready freehold property on Dubai Creek and the first in Dubai that was completed before being made available for immediate handover to pur-
“The property sector is showing the characteristics of a matured market and will correct itself to a more realistic level that fundamentals can support. That being said, demand is still evidently there, particularly for real properties built by reputable developers...”
– Zainab Mohammed CEO, Property Management, Marketing and Communications, wasl Properties
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COVERSTORY
Zainab Mohammed, Chief Executive Officer of wasl Properties’ Property Management and Marketing and Communications
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COVERSTORY
chasers. Buyers were able to physically view the units and not just artist impressions. The development, which is managed by Hyatt Hotels International, is a premium one, but we kept the prices in accordance with market value. It all added up to being a ‘good buy’ for investors, who snapped up the apartments at the sales event. All the units of Phase 1 have been sold out. However, there were brokers and bulk investors making acquisitions at the launch and
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they are likely to be putting some of their units on to the secondary market. As it is a ready-made property located close to the Dubai Creek and within easy reach of the city's central business district, the development attracted significant attention. Some investors may have bought units for rental income, meaning that Hyatt Regency Creek Heights Residences may appear also for lease in the rental market.
You launched your first freehold property at a time
when the market entered into a correction phase following the sudden increase in prices earlier last year. How difficult was it for your team to sell the first freehold property of wasl? wasl has been in the rental and leasehold market for some time but before this venture, didn't have a presence in the freehold property market. We studied well what others have been practicing for some time and put together a property sales team and database in a very quick
manner. Due to the underlying strengths of Hyatt Regency Creek Heights Residences that I have already mentioned, we were confident about receiving a strong response. All we needed to do was ensure that the market was aware of the project. Our sales team informed the real estate community of brokers, buyers, and investors that there was a new freehold property ready for buying and occupancy. What helped was the fact that the units were ready for inspection. Looking back on
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COVERSTORY wasl Park, a new masterplanned community being launched by wasl Properties that once built, will change part of Dubai’s growing landscape
it, the overall process was challenging, especially the preparation aspect, but it was also made easy as the project was standing tall and ready for buying. Overall, the experience was a tremendously positive one.
wasl has been in the rental market for a long time. Now that you have entered into freehold business and set up your own sale team to sell the projects – are you ready for new projects? Yes we are. In February this year we had the honour of
receiving His Highness Sheikh Mohammed Bin Rashid Al Maktoum, VicePresident and Prime Minister of the UAE and Ruler of Dubai, who officially inaugurated the Hyatt Regency Creek Heights project. In addition, His Highness launched three new wasl mega-projects that the company will develop over the course of the coming years. These projects are: wasl Gate, wasl Park 1 and wasl Tower. wasl Gate will be located in Jebel Ali area near the RTA Metro station; it is a spacious
city development that reflects the city's contemporary vision and its strategic 2021 Plan, which is aimed at ensuring happy residents in an inclusive society that offers them a unique experience for sustainable life and work. The key features of wasl Gate include the Innovation Centre that is aimed at attracting talented young people to practice modern arts, and a towering building named ‘Ibdaa,’ which will feature spaces for temporary rent to help innovators demonstrate their creativity. Ibdaa Tower will house a dig-
ital library that will provide a state-of-the-art technical environment to facilitate. Next to the Ibdaa Tower will be Ibdaa Square that will host exhibitions for new concepts and ideas, making the combined buildings the ideal destination for creative activities and events from the UAE and beyond. wasl Park 1 will be located in the heart of the popular green leisure space, Zabeel Park. wasl designers were inspired by the beauty of the park to envision the development’s integrated building designs which comprise harGulf Property
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COVERSTORY monious engineering shapes that form an angle resembling the figure '1' – the concept being that Dubai has the vision to be number one in all aspects of life. The property will also link Dubai Trade Centre, Zabeel Park and Sheikh Zayed Road, thereby providing an urban island in the middle of busy Dubai. wasl Park 1 will be complemented with hospitality and entertainment services that will include a host of restaurants and cafes throughout, as well as transversal retail compounds that transport the visitor from vivid city life to a fantastic shopping and picnic environment. Chief among the attractions will be a year-round Snow Fountain that uses state-of-the-art cooling technology to spread snowflakes throughout the year, cooling down the air even in the summer. This amazing centre-piece will be the first of its kind in the region. The third project launched, wasl Tower, will be the world’s first vertical all-inclusive city. Comprising 60 floors, wasl Tower’s vertical residential compounds will be supported with floor social halls that will comprise sports facilities, corridors, retail outlets, restaurants, cafes and other services, thus creating all-inclusive independent quarters in one tower. One of the key features of the development will be the exterior self-lighting techniques that will be utilised to reflect various occasions and events held in the city. Continuing its theme of light will be its optical museum, which will showcase historical and latest technologies, innovated by mankind in the field. wasl Tower will incorporate ceramic and other revolutionary materials to help regulate
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Hyatt Regency Creek Heights Residences – wasl Asset Management Group’s first freehold project, marking the developer’s foray in the freehold market. Unlike other developers, wasl launched its sales and marketing campaign last year after completing the project – so that buyers could enter their homes after making the payment
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Profile of A Business Leader
ainab Mohammad, who built her career in real estate management, has come a long way in developing her career with UAE’s large national institutions. She personifies the emirati business leadership and represents the new-breed UAE national human talent base who are expected to build the country’s future. Zainab Mohammed, who is ranked 10th amongst the 100 most influential Arab women, last year won Emirates Women Award bestowed upon her by Dubai Quality Group. With a career spanning more than 13 years in the real estate sector, Zainab Mohammed has become recognised within the industry as a driving force behind Dubai’s growing property sector and a hugely influential figure who consistently creates growth and profit opportunities across all of her portfolios. As CEO - Property Management and Marketing at wasl properties a subsidiary of wasl Asset Management Group, a semi-government entity and one of the largest property development and asset management companies in the UAE, Zainab leads more than 150 employees in more than 10 major divisions, including Revenue Control, Strategic and Business Planning and Development, Customer Service, Legal and Collection, Tenant Management and Support, Strategic Marketing, Operations, Sales and Marketing and Marketing and Corporate Communications. She is also responsible for overseeing the operations of the wasl
Zainab Mohammed, who is ranked 10th amongst the 100 most influential Arab women, last year won Emirates Women Award bestowed upon her by Dubai Quality Group Call Centre and the recently added division, wasl Owners’ Association Management. Her responsibilities extend to strategic planning, business development, capital raising and structuring and identifying new growth opportunities for wasl properties. Her extensive experience over the years has seen her managing projects, properties, human resources, operations and finance and budgeting, which has provided her with a wealth of expertise in the setting up and management of new departments and the stabilising and consolidation of operations. During her tenure at
Dubai Real Estate Corporation, she was an active member of the Corporation’s core committees, including the Executive Higher Committee, the Human Resource Management Committee, the Business Management Committee, the Risk Committee and the wasl Asset Management Committee. She is also Chairwoman of the wasl CSR committee. Zainab’s leadership and ability to successfully drive positive change within her organisation has enhanced the company’s core competencies and optimised its service through quality management, customer service and business excellence. Her customer-centric business philosophy has helped her team maintain wasl properties’ customer retention rate at more than 99 per cent, which has contributed to driving growth and profit in the property portfolios she manages. She was the recipient of the Emirates Women Award 2014, being bestowed by Dubai Quality Group. Her hands-on management approach, clear vision and exacting values continue to play a key role in ongoing business expansion efforts and modernisation at wasl. She is an opinion leader on property development, customer care and internal relations and is active in championing improvement by combining leadership and excellent communication skills to drive her team forward. Zainab is also a Member of the Board of Directors of Emaar Industries and Investments (Pvt). She holds a Master’s Degree in Strategic Project Management from Heriot-Watt University, UK, along with a post-graduate Accounting and Financial Business Management training certificate. g
COVERSTORY
“wasl will also announce new freehold projects in the coming months as plans are approved. We will initiate our sales campaigns accordingly. wasl has earned a rightful reputation as being a prudent and responsible developer. In the last few years our portfolio has expanded noticeably and we are currently in a good position to tackle the next phase of our growth...”
– Zainab Mohammed, CEO, Property Management, Marketing and Communications, wasl Properties
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His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai and Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai, are being briefed on the new projects planned by wasl Asset Management Group, aimed at supporting Dubai Government’s Vision 2021 by Hesham Al Qassim, Chief Executive Officer of Wasl and Zainab Mohammed, CEO of wasl Properties’ Property Management, Marketing and Corporate Communications
its interior temperatures and reduce noise from its surroundings. Its vertical garden will support sustainability, thus helping to significantly reducing its carbon footprint. Throughout its design phase, developers will pay attention to the importance of utilising the surrounding features so that the development will reflect the sophisticated advancement and great engineering of Burj Khalifa and Sheikh Zayed Road, the elegance of Jumeirah area, the serenity of the sea coast, the warmth of Dubai sunshine and the enchantment of the Arabian Gulf. Constructed in close proximity to Sheikh Zayed Road, wasl Tower will set new standards for architecture and high life style in future towers of the 21st century, not only in the UAE, but across the world. wasl will also announce new freehold projects in the coming months as plans are approved. We will initiate our sales campaigns accordingly. wasl has earned a rightful reputation as being a prudent and responsible developer. In the last few years
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our portfolio has expanded noticeably and we are currently in a good position to tackle the next phase of our growth. The launch of Hyatt Regency Creek Heights Residences gave our sales team the right exposure. We will carry this experience through to our future projects.
What would be your sale strategy going forward – would you rely more on your own sales team's strength or rely more on
brokers? It eventually might be a combination of both, as we believe that a successful business model relies on us having a healthy relationship with real estate partners in sales and investments. After all, we live and work in one network, so with this in mind we nurture our relationships to keep our business strong and ensure long term success. We also have a large enduser database. Many of our premium leasehold cus-
tomers may transition to enduser buyers of our properties. Our corporate strength helps us leverage our relationships and convert rental clients into freehold customers. We intend to utilise brandbuilding, advertisements, public relations and other channels for the launch and promotion of these projects. As of now, nothing is cast in stone. We will devise sales and marketing strategy as per the market conditions and these will vary from proj-
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COVERSTORY Zainab Mohammed, Chief Executive Officer of wasl Properties’ Property Management and Marketing and Communications, at the backdrop of a portrait of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai – an inspiration to all residents, professionals and business leaders living in the UAE
ect-to-project.
Will you engage exclusive sales partner for selected projects – or will it be open for all to block and sell properties? This is subject to the sales strategy of the particular project, which we will announce prior to the official release. However, we always believe each project has its own distinctive qualities that differentiate it from other products within the wasl portfolio or the market.
wasl is extremely careful to partner with organisations that share its core values and will only collaborate with those whose philosophy of customer service matches our own. Before we work with sales partners we conduct extensive due diligence to ensure that customers receive the same standard of service that they can expect from wasl. We do have preferred partners that have an existing relationship with us from the previous projects we have
launched. When it comes to new developments, we look at their respective strengths to identify which ones we would be most prudent to work with based on their experience. We tally their qualities with the qualities of our respective developments to ensure the optimum fit. Will wasl be aggressive in the freehold development market? How strong is the development pipeline? Since the company has a
large pool of rental and hospitality units, we have the financial resources now to undertake large-scale projects. We have definite plans for stand-alone developments, as well as master-planned communities as the ones launched this year by His Highness Sheikh Mohammed Bin Rashid.
How do you see the freehold market shaping up this year, as we have witnessed a slight softening Gulf Property
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wasl Gate, a new masterplanned community being launched by wasl Properties recently
already? The current market is witnessing a correction, which is manifesting as a softening of prices. In a matured market, real estate price moves with market fundamentals. You cannot artificially hike prices and hope it will continue long-term. What happened in Dubai’s freehold market was that it took off well in 2013 and peaked following the UAE’s historic win of the Expo 2020 bid in November 2013. The market fundamentals could not support this, so it was inevitable that prices would return to a more realistic level
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after the euphoria had died down. The property sector is showing the characteristics of a matured market and will correct itself to a more realistic level that fundamentals can support. That being said, demand is still evidently there, particularly for real properties built by reputable developers. There have been a few other sell-out projects that have been snapped up by buyers in recent months. As the market has matured, so have the buyers, who have become pickier. They are looking for the right product
at the right price and in the right location.
Since you have a very strong leasing portfolio, your organisation has the option to put unsold units in the rental market. Will it be a business model for your freehold operations going forward? We have a very good, sustainable business model which involves us creating synergies between rental, leasehold and freehold properties. Yes, that option remains as we move forward and as market conditions change.
How do you see the effects of the low oil price on the real estate market – going forward, if the current price continues for a while? The UAE economy in general and the Dubai economy in particularly is no longer dependent on oil. Our government has done well in diversifying and oil price fluctuations no longer have major repercussions. Dubai has become more of a consumer of refined oil, so an oil price decline would definitely help the gasoline retailers as well as private sector entities as they will have to count less costs for
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Nad Al Hamar Gardens
mong the new freehold projects being developed by wasl is the Nad Al Hamar Gardens – a mixeduse master planned community. It will be wasl Properties’ first masterplanned mixed-use freehold community, following its successful launch of the Hyatt Regency Creek Heights Residences. The development will have 69 residential plots, 32 mixed use plots (with retail on the ground floor), two school plots and 12 showroom plots. Landscaping and gardens will make the development appealing to multiple demographics. Freehold ownership enhances the value of the development. Nad Al Hamar Gardens, located off Mohammed Bin Zayed Road, will expand Dubai’s real estate market and help meed the growing needs of residential and commercial real estate, as well as retail and leisure needs. wasl will provide a top-class infrastructure in the Nad Al Hamar Gardens transportation. If a low oil price lingers, then some of the regional oildependent economies have reasons to worry, but not the UAE.
Since you have a strong residential, hospitality and retail portfolio, will wasl be focussing on mixed-use developments, going forward? As I have hinted earlier, yes we will. You will hear from us on these in due course. Will you continue to rely on company resources for project development – or will you use the debt mar-
ket, bank finance and other funding options, going forward? It will vary, project-to-project. If we find favourable rates on raising debts – why not? However, we expect to mostly rely on the substantial resources we have accumulated from our successful business model to date. How would you differentiate wasl's freehold properties with other developers' freehold projects? In other words, why should an investor put his money on wasl's projects? Very simple — we are a reli-
project, resulting in a wellplanned and connected community for future residents and owners. The project is spread over a land mass of approximately 6 million square feet vacant plots located in Nad Al Hamar facing Mohammed bin Zayed Road. The master development plan features a mix of residential, mixed-use towers along with showrooms. The project emphasizes on community features, green spaces and open areas with ample amenities such as mosques, schools and retail areas within the development to complement the overall development. The project offers excellent connectivity to all parts of Dubai through Mohammed bin Zayed Road. Other residential developments, within the areas of Mirdif and Al Warqa are close by, while it lies within a short distance from Mirdif City Centre. It is located 15-minutes to Sheikh Zayed Road and Dubai International Airport, 20 minutes to new Dubai and 40-minute drive time to Jebel Ali. g able and dependable developer and one with the largest residential inventory. We offered our first freehold project after its completion and collected proceeds only at handover. We did not sell a dream – we delivered the goods at launch. When it comes to developer credibility, you will find us second-to-none in the market. We have our own inhouse teams providing sales, customer service, property and facilities management, home owners association that offer exceptional services from A to Z in the real estate market. g
COVERSTORY
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wasl Asset Management Group
asl Asset Management Group, one of the largest real estate management companies in Dubai, was established by the Dubai Real Estate Corporation (DREC) in 2008 to oversee the management of its assets and grow its real estate portfolio. wasl manages an extensive real estate portfolio of over 30,000 residential and commercial properties within the emirate of Dubai. The company’s operations also spans various sectors including industrial plots, leisure and entertainment, retail and hospitality projects. Its first foray into freehold was the Hyatt Regency Creek Heights Residences, a 43-storied contemporary tower located by Dubai Creek and offering luxury apartments, super luxury loft duplexes and dedicated hotel services, managed by the Hyatt group. Through its three subsidiaries; wasl properties, wasl hospitality and leisure and dubai golf; wasl operates in various real estate, lifestyle, leisure, hospitality, and business sectors. wasl’s main objective is to strengthen Dubai’s position as the premier hub to live and work in and at the same time be the ultimate destination for tourists.. g Gulf Property
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ABUDHABI
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Gulf Property Exclusive
bu Dhabi authorities are planning to launch a rental index to create a benchmark rental rate for different neighbourhoods across various segments of the real estate market to help tenants and landlords in the emirate’s growing property market, a senior official told Gulf Property last month. The move that comes a few days after Abu Dhabi Government issued a new real estate law regulating the property sector in the emirate – will be part of the new law. The law includes a provision to protect the rights of buyers
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Abu Dhabi mulls rental index
when units are sold before completion and specifies the jurisdiction of the Department of Municipal Affairs regarding property issues. “The new real estate law issued last week in Abu Dhabi will include a rental index for the emirate which has become a necessity to bring greater clarity in the market,” Mohamed Al Khadar, Executive Director, Urban Development and Estidama Sector, at the Abu Dhabi Urban Planning Council (UPC), said on the sidelines of a press briefing on Reem Island. The law, issued by His Highness Sheikh Khalifa Bin Zayed Al Nahyan, UAE President in his capacity as Ruler of Abu Dhabi, include the setting up of a real-estate registry to save all data and
documents related to development, and the creation of escrow account. The latter is to be opened by the developer for each project to deposit all amounts paid by the buyers of units. The law provides details regarding licensing of individuals, including the developer, the broker, the broker’s employees, the auction seller, residents and the surveyor. The new Initial Real Estate Registry also clarifies offplan sales. All transactions related to off-plan units will be recorded to avoid issues such as failure to execute the sales contract, and in the event of the project not being completed. Abu Dhabi, which started extending freehold property ownership on ‘surface prop-
erties’ to foreigners since 2005, does not have a land department to deal with the real estate market. The Department of Municipal Affairs, which is in charge of the municipal affairs, urban development and maintenance of the infrastructure, handles land and property transactions and land allocation. The Department of Municipal Affairs is the umbrella organisation in charge of all the cities and township development within the Abu Dhabi emirate and covers the city of Abu Dhabi, Al Ain and Western Region – which has a number of towns currently under development. However, in the absence of a land registry and a property regulator, the Department of Municipal Affairs and the
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At A Glance
Dh25 billion
initial cost of development of Al Reem Island projects
Dh29 billion
invested in the Reem Island projects so far
Dh17 billion invested by Tamouh at Reem Island
210,000
number of people expected to live and work at Reem Island, when completed
plan for Abu Dhabi’s Reem Island development that was initially estimated to cost Dh25 billion to develop..
Urban Planning Council is guiding the development and expansion of the real estate sector in the emirate. Khadar said, the lack of a land department and regulator should not affect the development of the sector. “The Department of Municipal Affairs is doing a great job in reshaping the real estate market within the Abu Dhabi emirate and so far we do not see the need for the creation of additional bodies,” Khadar said. “However, the UPC is looking at the overall urban development in the emirate so that the urban development in Abu Dhabi remains sustainable and environmentally friendly. “Although we are not a regulator, but we control and
guide the urban development under the Plan 2030 guidelines.” He said, the real estate market in Abu Dhabi is maturing which requires new mechanisms to reshape the sector and guide it towards a more structured growth. UPC is helping all project developments to realign with the Abu Dhabi Plan 2030 that stresses on environment friendliness, urban planning and sustainability. “We want responsible growth. That’s why all new projects will have to reserve 20 per cent of the project dedicated to affordable housing,” he said. He was briefing the media on creating an integrated urban development framework and detailed master
Reem Island Master Plan
Reem Island is a mixed-use master planned community with residential, commercial leisure, retail and business facilities on Al Reem Isle, a natural island 600 metres off the coast of Abu Dhabi island, currently connected with multiple bridges to Abu Dhabi and Saadiyat Island. The 8.5 million square metre island is currently being developed separately by Aldar Properties, Reem Investments, and Tamouh. Tamouh has invested Dh17 billion while an additional Dh12 billion has been invested on developing infrastructure by Bunya – the entity in charge of developing infrastructure of Reem Island. “The island will require an additional investment of Dh5-6 billion,” said Tariq
ABUDHABI Hatim Sultan, Chief Executive Officer of Bunya Enterprises, which oversees the development of the island’s infrastructure. The Island could be home to up 210,000 residents, more than 10,000 hotel rooms, and thousands of office workers under a revised master plan for the island that was unveiled last month. A new master plan for the island was unveiled by Abu Dhabi’s Urban Planning Council (UPC) that sets out development limits for the island. According to the Integrated Concept Master Plan (ICMP) for Al Reem Island, the master plan covers the total land area of Al Reem Island of 8.86, million square metres, with a total gross floor area (GFA) of almost 20 million square metres. Of that, 1.44 million square metres GFA will be office space, 873,576 square metres will be allocated to retail (which includes the upcoming Reem Mall), and up to 10,000 hotel and serviced apartment rooms will be available, along with schools, hospitals and other community facilities. “When Reem Island was conceived and launched nearly ten years ago, there wasn’t any master plan for the island. Each developers planned their projects with little coordination. However, it took us 10 months to finalise the integrated master plan and we are closely working with the master developers to execute this,” Mohamed Al Khadar, Executive Director, Urban Development and Estidama Sector, UPC, said. “The whole idea is to create a world-class destination where all the developers complement to the island’s attraction and create something unique.” Gulf Property
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He said, as per the planned development, four more bridges will be built by 2017 to have the island connected to Abu Dhabi island. The ICMP detailed major facilities including plans for 11 new private schools accommodating a minimum of approximately 22,000 students, six dedicated nursery/kindergarten centres, one university (Paris Sorbonne), three new private hospitals and a number of clinics, nine mosques, civil defence and police facilities, a major transit hub, and 500,000 square metres of parks and open space, including pedestrian promenades for much of the Island’s coastline in addition to residential, commercial, retail and hospitality facilities.
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The plan has been created by the island’s three master developers – Tamouh, Reem Investments and Aldar Properties — which is, in turn, approved by the UPC. “Not only will the growth of Al Reem Island, one of the key areas of expansion for Abu Dhabi, be carefully managed, we are also ensuring that all future developments meet our Complete Sustainable Communities directives, to support the creation of more comfortable, liveable and sustainable communities on the Island; this is central to our mandate,” Khadar said. Already, 15 per cent of the buildings covering 20 million square metres at Reem Island are either built or under way, and there are 20,000
residents. “Transaction levels remained robust in Investment Areas, in particular Reem Island,” said Asteco in its latest report on Abu Dhabi’s real estate market. “However, in some masterplanned developments, transaction levels remained relatively low, which reflected a continuous gap between the purchaser’s appetite for property and the vendor’s price expectations.” Tamouh, which is the biggest developer on the island, controlling 57 per cent of the land, has completed 3,500 residential units at its 14-tower Marina Square project. “As of today, more than 95 per cent of them are occupied,” said Joe Ong, Manag-
ing Director of Tamouh, adding that the community should eventually house 10,000 people. Elsewhere on Reem Island, Tamouh expects to deliver 4,500 new homes over the next four years at the City of Lights project, where seven of a total of 17 towers are being built. The first, the 56-storey LX Tower office building, has recently been handed over. “Probably by the end of the year, two more blocks will be delivered. Our sub developer, Hydra Properties, will be delivering three more blocks. So we are talking about five more blocks within a year,” he said, adding that these would comprise 2,000 homes. Among the rest of the island, Aldar Properties owns
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ABUDHABI
20 per cent while Reem Investments owns 20 per cent. Aldar Properties, which controls about 20 per cent of the land, has already built The Gate Towers and the Sun and Sky Towers at Shams Abu Dhabi on the island. When its new 408-unit Meera Shams Abu Dhabi and schemes by sub-developers are added, it has about 3,500 units either completed or under construction. Sultan said, Abu Dhabi Metro and Light Rail Transit — both are expected to connect Reem Island by 2018. Reem Island was launched by Reem Developers in 2005 as the height of the real estate boom, with a development value estimated at Dh25 billion at that time. However, the project under-
went cycles of changes following the global financial crisis of 2008-09. The ICMP will enable the Island’s developers to complete their own master plans, which will help the UPC and other agencies better manage existing development on Al Reem Island and ensure that future development is of the highest quality and meets current regulations and standards. The ICMP is in line with Abu Dhabi 2030 Vision, providing for managed growth of market housing, commercial offices and retail space in close proximity to the existing central business district on Al Maryah Island. It was submitted by Bunya LLC in December 2014, after working closely with the UPC
and Al Reem Island’s key developers over the past seven years to create a plan that incorporates the objectives of the developers with the requirements of the UPC. The UPC issued their final approval on 8th April 2015. Bunya LLC, responsible for planning, executing and managing infrastructure and operations on Al Reem Island, was incorporated by the Island’s three key master developers – Tamouh, Aldar Properties and Reem Developers – to ensure delivery is well-phased and comprehensively delivered.
Affordable Homes
More than 20 per cent of the residential developments are
to be reserved for affordable homes, Khadar confirmed, saying that the developers have their share of the responsibilities regarding affordable homes “It is mandatory for the developers to reserve 20 per cent of the residential units for affordable homes,” Khadar says. “We will be coordinating with the developers to ensure that this is done as per the integrated master plan.” Joe Ong, Managing Director of Tamouh, said, “We will build enough affordable homes that is needed to service the Reem Island. “We are building 11 schools – so we need to build enough housing facilities for the teachers and support staffs, homes for nurses at the clinics.” g Gulf Property
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Low oil price to reduce growth in construction
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Gulf Property Exclusive
ontinued lower oil price is expected to reduce the pace of growth in the construction spend across the Gulf Cooperation Council region although due to the governments’ social and economic obligations certain projects will keep the construction sector buoyant, industry reports and analysts say. The dip in oil prices may push the Gulf Cooperation
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Council (GCC) member nations to restrict state spending, hampering the growth of the construction industry, which is materially dependent on government funding. The opportunities available in the construction industry could be affected due to lower investments from the private sector, and plunging disposable income levels. Further, lower tourist inflow from oil-dependent nations may hamper the growth of the construction industry. Despite a projected slowdown in the GCC’s construction market, investments in key areas must press ahead
to alleviate the fall in oil prices, experts said at a recent conference organised by MEED events. Mohammed Al Rais, Middle East President at the US’ Hill International, said that even if oil prices remain low, there are certain areas that should not see a compromise in spending and investment. “Social projects for the people, which in certain areas fall behind, must continue irrespective of the situation. The issue is prioritisation by the authorities.” Low oil prices have forced governments to concentrate
only on essential schemes. The first four months of this year saw the second-lowest level of contract awards in the Middle East’s construction sector since 2008, as the impact of low oil prices is felt in the industry. While work that was under way has largely continued unaffected this year, the region is experiencing a fall in new contract awards. Samer Khoury, President of Engineering and Construction at Athens-based contractor Consolidated Contractors International Company (CCC), said, “Petrochemicals will slow-
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Top 15 selected future projects in GCC Project Renewable Energy Program Nuclear Power Reactor Al Maktoum International Airport Expansion Yanbu Oil-To-Chemical Complex Heart of Jeddah Development (HOJ) Gharbia Chemicals Industrial City Prince Abdulaziz Bin Mousaed Economic City Riyadh Dammam High-Speed Rail Al Khairan City Al Ruwais Regeneration in Jeddah Khozam Development in Jeddah Renewable Energy Program: Round 2 ADNOC / Shell - Bab Sour Gas Project GACA - KAIA: Phase 2 Duqm Petrochemical Complex
Country Value ($ billion) KSA 128.44 KSA 63.0 UAE 31.6 KSA 30.0 KSA 19.86 UAE 18.30 KSA 15.0 KSA 14.0 Kuwait 13.95 KSA 13.8 KSA 12.33 KSA 10.92 UAE 10.0 KSA 10.0 Oman 9.0
Status Study Study Bid Study Prequalification Bid Study Study Study Study Design Study Study Study Study
Top 15 selected future projects in bid or prequalification Project Al-Maktoum International Airport Expansion Heart of Jeddah Development (HOJ) Tacaamol - Al-Gharbia Chemicals Industrial City King Fahd Causeway Expansion Musanada - Abu Dhabi Metro Mecca Municipality - Mecca Metro: Lines B and C Mixed-Use Development in Medina: Metro Saudi Aramco: Shale Gas Development: System B Aramco: Ajyal Residential Development KNPC: New Refinery Project: Package DEWA: Hassyan Coal Fired IPP Phase 1 Kuwait Airport Expansion: New Terminal QRAIL: Passenger and Freight Rail LNG Import and Regasification Terminal New Refinery Project: Package 3 Source: MEED Projects
down but upstream will improve. Aramco will expand outside of the core business, but other countries will only focus on oil and gas upstream.” The total value of new contracts signed so far this year reflects this. A total of $61 billion (Dh223.87 billion) worth of contracts have been awarded in the GCC up to 20 May 2015, down nearly 28 per cent on the $85 billion (Dh311.95 billion) over the same period in 2014. With less new work being secured, diminishing backlogs may create a more significant slowdown in
Country Value ($billion) UAE 31.6 KSA 19.86 UAE 18.3 KSA 5.14 UAE 5.1 KSA 4.39 KSA 4.0 KSA 4.0 KSA 3.58 Kuwait 3.55 UAE 3.54 Kuwait 3.54 Qatar 3.5 Kuwait 3.315 Kuwait 3.0
construction activity on site in 2016, while at the same time offering some respite to a market that in 2014 was starting to look overheated. The impact is expected to continue throughout the year. Contract awards for work either directly or indirectly associated with the Expo 2020 in Dubai or the 2022 FIFA World Cup in Qatar are expected to still happen. But awards for projects that are not considered strategically important could slow down or stop, industry experts say. Saudi Arabia has propped up the construction market so far this year and has sev-
eral schemes in the pipeline. However, with the sweeping governmental changes made by King Salman bin Abdulaziz Al Saud, and his edict that projects costing more than SR300 million ($80 million) go through a committee review, upcoming awards could be in danger of being stopped or scaled back. It is the same story in the UAE, where the 12-month growth rate has dropped from 13.5 per cent to 11.3 per cent. It will not significantly affect projects in 2015, but does mean a slowdown in the projects pipeline. Given the outlook for oil
NEWSUPDATE At A Glance
Dh4 trillion
value of planned construction projects in GCC
Dh1.83 trillion value of contracts awarded between 2016-2014 in GCC
Dh3.4 trillion
value of top 100 projects in the GCC in 2014
Dh595 billion projected value of GCC construction sector in 2016
Dh311 billion
value of contracts signed in six months of 2014
Dh223 billion value of contracts signed in six months of 2015
prices, it is a trend that will continue as it is difficult to see where new projects will come from. One city however, is bucking the projects slowdown trend and that is Dubai, driven by tourism. The emirate is tendering a raft of major new hotels, attractions and infrastructure to cater for the 20 million visitors it hopes to welcome in 2020, when it hosts the Expo. Of particular interest is the development of Route 2020, the metro extension to the Expo site. Questions about Dubai’s liquidity, however, continue to cause concern. However, the good news is that – going forward, the Gulf countries will aim to attract higher investments in its construction sector by hosting global events and showcasing itself as a preferred Gulf Property
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tourist and investor destination. “This will result in the overall construction industry growing at a compound annual growth rate (CAGR) of 11.3 per cent from US$91.5 billion (Dh335.80 billion) in 2013 to reach US$126.2 billion (Dh595.27 billion) in 2016,” said a latest GCC Construction Industry report by Alpen Capital issued last week. The construction industry in the GCC is witnessing a growth phase, driven by an increase in government investments, as the member nations target economic di-
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versification. Optimistic forecasts for the UAE's construction sector for the next few years is based on an economic recovery, safe-haven status, liberal investment climate, relatively advanced real estate regulatory framework, as well as a buoyant infrastructure project pipeline as part of the country’s strategic vision 2021. “The GCC construction industry foresees growth from 2015-2018, encouraged by factors such as favourable macroeconomics, positive demographics, and rising tourism activities. Higher budget allocation towards
construction sector, as part of the strategic vision of the member nations, lends an added push to the industry,” says Sameena Ahmad, Managing Director, Alpen Capital (ME) Limited. The GCC holds large oil reserves, making it dependent on its flourishing hydrocarbons sector, which contributed nearly 50.5 per cent to its GDP in 2014. The on-going efforts to reduce the dependency on the hydrocarbons sector across the GCC regions have resulted in an increase of capital investment (as a percentage of the GDP) in
the construction industry. The increase is expected to be channeled towards meeting the high construction demand across the region. The region’s population is expected to grow at a CAGR of 2.5 per cent from 2014 to 2018 to reach 56.9 million. An expanding population base is likely to translate into higher demand for residential, commercial, retail, hospitality, healthcare, leisure and infrastructure sectors across the GCC. Over the years, the Gulf region has emerged as an international tourist hub for leisure travelers, interna-
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tional shoppers, and pilgrims. To accommodate the large number of tourists and further promote the tourism industry, the GCC countries are investing heavily in the development of airports, transportation systems (rail, road networks, etc.), hotels, retail, and leisure sectors. The GCC construction industry saw increased activities in the infrastructure sector in 2013 and 2014 due to an upbeat economic sentiment. However, the industry’s contribution to the region’s GDP almost remained flat from 5.5 per cent in 2010 to 5.7 per cent in
2014. With the run up to the mega-events being hosted by some countries, the region is slated to open up opportunities across the sectors of tourism, hospitality, and retail, translating into growth for construction activities. “The GCC governments challenge to diversify their economies from oil and gas and their consistent focus on infrastructure development across sectors has kept the construction industry in focus,” Sanjay Bhatia, Managing Director, Alpen Capital Investment Bank (Qatar)
LLC. “Activity in sectors across infrastructure, residential, commercial, hospitality, retail, etc., have taken centrestage in inviting global participation and attracting the attention of businesses and tourists alike. Although investments are directly dependent on the pace of each Government, we believe that the GCC region continues to be a desirable location with accelerating growth prospects for the near future.” Construction has always been the largest single sector in the GCC. Since 2006,
just over $500 billion (Dh1.83 trillion) worth of civil construction projects have been awarded in the six GCC states. Even more staggering is that fact that the total value of planned and unawarded construction projects exceeds $1.09 trillion (Dh4 trillion), roughly twothirds of the GCC’s entire annual GDP. This investment is being driven by substantial population growth, particularly in the areas of the social housing, education and healthcare. At the same time, private sector real estate has now regained the confidence it lost in 2009 as house prices rise close to their historical peak and new projects launch every week. In 2014, there were 65 real estate and transportation projects in the Top 100 Projects across the GCC countries, according to MEED. Total worth of real estate and transportation and projects in the top 100 projects amounted to US$924.7 billion (Dh3.39 trillion) in 2014 (as compared to US$867.3 billion in 2013). Real estate and transportation projects constituted 74 per cent of total project value in top 100 projects across the GCC region. The real estate and transportation projects include economic cities under development, up gradation or revamping of airports, expansion of railway network, and construction of affordable residential housing units, among others. Country-wise, the UAE accounted for the maximum value of projects, worth $525.6 billion, followed by Saudi Arabia with $407.8 billion, followed by Kuwait with $123.6 billion and Qatar with $113.8 billion, presenting a busy construction sector, followed by Oman with $29.6 billion. g Gulf Property
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Limitless restructures Dh4.45bn debt till 2018
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ubai developer of international projects Limitless said it will settle its total debt obligations of Dh4.45 billion by 2018, instead of 2016 as per the due debts, in exchange of an early payment of Dh2.07 billion to banks and trade creditors. The developer, which owns large swathes of landmass in a number of countries across the Middle East, Pakistan, Vietnam and China, is looking at regaining its energy and focus that it
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lost due to the global financial crisis of 2008-09. “Limitless will repay Dh1.9 billion in bank debt, including an early payment of Dh411 million, and a further Dh176 million owed to trade creditors,” Limitless said in a statement. The repayment to banks represents 42 per cent of Limitless’ outstanding bank debt of Dh4.45 billion. “The repayment reflects the company’s ability to successfully execute its business by achieving sales, including the sale of part of its land bank in Saudi Arabia for Dh2.07 billion. While 90 per cent of the repayment
will be paid to banks, 10 per cent – around Dh176 million – will go to trade creditors,” the statement says. Limitless, established in 2005 as an offshoot of master developer Nakheel, is presently in negotiations with its banks to agree on new terms and conditions for the repayment of the remaining debt and requires the banks to agree to an extension of period to December 2018. “With almost 90 percent of the banks agreeing to the revised terms, Limitless is confident that the remaining 10 per cent of the banks will soon agree to the revised proposal to enable Limitless
to successfully conclude on these negotiations,” the statement said. Limitless has been in talks with creditors for more than a year about a revised restructuring plan. It had received an extension to a $400 million (Dh1.46 billion) debt repayment that was due on December 31 last year. State-owned Limitless had agreed in 2012 to restructure its Dh4.45 billion debt by 2016. About 60 per cent of the total debts owed to the banks are held by local lenders. They are part of the 18-bak creditors group. The company sold half of its 14 million square metre
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Van Oord gets Dh550m Nakeel job
Ali Rashid Lootah, Chairman, and Mohammed Rashed Bin Dhabeah, Chief Executive Officer of Limitless announce new restructuring of its debts
land bank in the Saudi capital Riyadh to the Saudi property developer Al Akaria for Dh2.07 billion. The deal was worth 2.13 billion Saudi riyals, according to Al Akaria’s statement to the Saudi stock exchange posted in October last year. “This is very positive news for Limitless. We are honouring our commitment to creditors and outperforming the current restructuring plan with an early repayment, six months ahead of time. The Dh1.9 billion includes an early repayment of Dh411 million on amounts not due until December 2015,” Ali Rashid Lootah, Chairman of
aster developer Nakheel has appointed marine engineering contractor Van Oord to deliver 23.5 kilometres of coastline and breakwaters at Deira Islands, its new, 15.3 square kilometres waterfront city in Dubai. The Dh387 million contract, signed on June 29 with Van Oord Middle East Limited, includes beaches, quay walls, rock edges and breakwaters at Deira Islands, which is set to transform Dubai’s Deira district into a world-class hub for tourism, living, retail and entertainment. The overall cost of the coastal work is around Dh550 million. The two-year contract – stage one of Nakheel’s water edge delivery programme at Deira Islands – includes 8.5 kilometres of beaches, 3.5 kilometres of quay walls and 9.5 kilometres of rock revetments at two of the four Deira Islands. The work includes a Limitless, said. “We thank the Government of Dubai, our lenders and trade creditors for their continuous trust and support, which has enabled us to achieve this milestone. We also strongly believe that the lenders showing more co-operation and flexibility in accepting the revised terms will pave the way for Limitless to continue to develop its assets and meet its commitments to investors.” The deal enables the developer to renegotiate the terms of the debt settlement with creditors with early payment of part of the debts. Lootah said he expects the
4 kilometres stretch of waterfront, big enough to accommodate more than 500 yachts and boats, at the 4.5 million square metre south island. Van Oord will also build 2 km of breakwaters to protect the newly-created basin and beachfront. Nakheel has previously engaged Van Oord for dredging and coastal work on its world-famous waterfront projects in Dubai, including Palm Jumeirah and The World which added 300 kilometres to Dubai’s coastline. Deira Islands will add another 40 kilometres, including 21 km of beachfront. Deira Islands, one of several Nakheel developments underway in line with the Government of Dubai’s tourism vision, paves the way for hundreds of new hotels, serviced apartments, mixed-use buildings and marinas. Nakheel itself is developing a significant chunk of the south island with a host of new attractions including Deira Islands Night Souk, Deira Mall, and Deira Islands Towers and Boulevard. g company to become profitable by 2018 with increased cashflow from current and future developments that the company plans to execute by 2018. “With a number of new projects that Limitless will undertake in the next few months, we expect the company to become profitable by 2018 when we would be in a better position to repay all the balance debts and become a debt-free company,” Lootah, who steered Nakheel out of a massive debt crisis between 20092012, said at a briefing. “We are planning to undertake these projects in Dubai where we see a better return
NEWSUPDATE and which will help us to generate enough cashflow to repay the entire debt by 2018.” He said, the company is planning to develop 1,200 apartments in Downtown Jebel Ali, its flagship project in Dubai, that will help raise part of the revenue needed to manage the debts. Earlier, Limitess awarded a contract worth Dh285 million for infrastructure work at its flagship Downtown Jebel Ali mixed-use project in Dubai to UAE-based Arco General Contracting to carry out complete community infrastructure work – including roads, sewerage, utilities and lighting – in all four zones of the development, to prepare land plots for handover to third party developers. Mobilisation will begin immediately, with work due for completion by the end of 2017. Lootah said, his company is focussing on Downtown Dubai, Limitless’ flagship project in Dubai, where the infrastructure and locality has been developed and there is a growing demand for facilities. Downtown Jebel Ali spans 200 hectares and stretches 11 kilometres along Dubai’s Sheikh Zayed Road. The project has more than 300 third party plots, on which investors will build a mixture of apartments, hotels, offices and retail developments. Located between Jebel Ali Free Zone and Techno Park, the development is easily accessible from Dubai and Abu Dhabi. Limitless has already delivered The Galleries at Downtown Jebel Ali, a fully operational, business and retail community in zone 1. The Galleries currently features office facilities and retail outlets, with residential units coming soon. g Gulf Property
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akheel, developer of the palm-shaped island that hosts the Atlantis resort, said, construction of the Dh800 million project at the tip of its flagship Palm Jumeirah Island – the Pointe – will be completed this year, with most of the 100 retail and food and beverage outlets already leased out. Construction of the Pointe – a 1.4 million square feet retail destination that stretchs about a kilometre and a half – started last year as contractors are racing against time to meet the delivery deadline set by the developer. However, this important destination, which will host a car parking lot with a capacity of 1,600 vehicles, might
not be ready by December 31st night for the fireworks to grace the new year, 2016. “Construction of the Pointe is currently around 30 per cent complete, with the first shell and core handovers due in Q3 2015,” said a Nakheel spokesperson. The Pointe will create a new retail destination within the Palm Jumeirah and offer a place for visitors to shop and dine. “The Pointe will be the largest waterfront food and beverage stretch in the region that will cater to a wider consumer base with different tastes,” Omar Khoory, Director of Nakheel Retail, told the media during a press tour of the site. “We expect daily footfall of 40,000 to 50,000 visitors per day while the footfall will drastically increase during the weekends and festive
seasons. Of this, we anticipate 60 per cent would be tourists who would spend more time on the Palm Jumeirah – for shopping and dining.” He said, Palm Jumeirah has nine hotels and resorts with 4,000 rooms currently catering to tourists. “There are six more hotels currently under construction. Palm Jumeirah is scheduled to host 32 hotels and resorts with 15,000 guest rooms, once completed. Most of them are located on the Crescent,” Khoory said. “Currently the island is host to 35,000 residents that live on the island. The Pointe will feature famous-name restaurants specialising in cuisine from across the world, including Arabic favourite Reem Al Bawadi; Russo’s Italian
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The Pointe at the Palm Jumeirah island, to become a popular tourist destination, once complete
Kitchen; Leopold’s of London; Baker and Spice; Red Lobster; Longhorn Steakhouse and Olive Garden. Dozens more, serving everything from steak to sushi and noodles to nachos, are also on board. In addition, Nakheel itself will have a food and beverage outlet at the Pointe, adding to its growing number of restaurants and clubs in Dubai. Khoory said, the selection of outlets and choice of food and beverage outlets have been made very carefully keeping in mind of all the consumer categories – from high-end to the affordable dining segment. “We wanted to make the Pointe a destination for all. Consumers from all cross-
sections of the society will find their favourite food, cuisines at their disposable,” Khoury explains. “It will also host fast-food outlets, for example so that everyone could look forward to come and enjoy the environment.” In order to keep in line with the low-lying villa community, the buildings at the Pointe are constructed with two floors above the ground only to create a distinct experience. The entire project overlooks Atlantis the Palm resort which is undergoing an expansion with 800 new rooms being constructed to cater to the growing demand. The Pointe, located at the tip of Palm Jumeirah across the bay from Atlantis, has also signed a vast array of
shops and services including jewellers, fashion stores, opticians and beauty salons. A total of 148 units, covering more than 500,000 square feet, are available for lease. “The Pointe is set to bring Palm Jumeirah alive with spectacular fountain shows, a beautiful promenade and a huge variety of waterfront spots for dining, shopping and socialising. This vibrant new destination will be a major draw – not only for the island’s residents and tourists but for the wider Dubai, too,” Khoory says. “Nearly two thirds of the available leasing space at The Pointe is already booked, and we’re signing new deals almost daily as more restaurants, cafes and shops seize this opportunity Gulf Property
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to be part of Palm Jumeirah’s ever evolving success story.” Due for completion in 2016, the Pointe is accessible via the Palm Monorail, which is connected to the Dubai Tram and Dubai Metro, and by boat from Palm Jumeirah’s growing number of resorts. The project is among several new Nakheel developments underway at Palm Jumeirah, including Nakheel Mall, The Palm Tower, The Boardwalk and Palm West Beach. Nakheel’s retail portfolio is set to become the UAE’s biggest, with 10 new largescale developments and a
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growing collection of smallerscale community retail centres on the way. The company has 11 million square feet of leasable retail space in the pipeline, adding to the 2.5 million square feet already in operation at its Dragon Mart and Ibn Battuta Mall. Nakheel’s growing retail portfolio will help raise its annual recurring revenue and make it a more sustainable company.
Omar Khoory, Director of Nakheel Retail
Ibn Battuta Mall Extension
Nakheel last month launched
another 766,000 square feet of shop and restaurant space for lease at Ibn Batutta Mall, further cementing its rapid expansion into Dubai’s retail sector. Ibn Battuta Mall, already the world’s largest themed shopping mall, will feature an extra 600 retail, dining and entertainment outlets in its new, 4.7 million square feet extension, announced in April in the presence of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. The extension – the sec-
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ond large-scale expansion at Ibn Battuta – will bring a new, one million square feet mall, multi-screen cinema complex, multi-storey car park and a second hotel with 370 rooms to the existing development. At its centrepiece will be a 300,000 square feet courtyard with a retractable glass roof that can be opened in Dubai’s cooler, winter months for open-air shopping. The size of four football fields, the courtyard area alone has space for around 80 new shops and restaurants.
Omar Khoory said: “We are bringing a new shopping experience to Ibn Battuta Mall, enhancing the existing offering to reflect increasing demand. “The mall already attracts 52,000 visitors a day and more than 200,000 on its busiest weekends. Our dramatic expansion will transform the area into a huge retail, dining and leisure destination spanning seven million square feet and featuring more than 1,000 shops and attractions in total. “This will be a fantastic new facility for nearby residents and the wider Dubai commu-
nity. In addition, the mall continues to capture motorists travelling between Abu Dhabi and Dubai as it’s the first major retail and dining centre on Sheikh Zayed Road for Dubai-bound travellers.” Stretching 1.2 kilometres, Ibn Battuta Mall is the world’s largest themed shopping mall, highlighting the travels of renowned 14th century Arabian explorer, Ibn Battuta. The mall currently features six individually-designed zones – named after and reflecting the most influential places he visited – with 300 shops, cafes and restaurants. g
akheel is one of the world’s leading developers and a major contributor to realising the vision of Dubai for the 21st century: creating a world class destination for living, business and tourism. Nakheel continues to deliver and enhance an iconic portfolio of innovative landmark projects in Dubai across the residential, retail, hospitality and leisure sectors. Nakheel’s master developments in Dubai include Palm Jumeirah, The World, Deira Islands, Jumeirah Islands, Jumeirah Village, Jumeirah Park, Jumeirah Heights, The Gardens, Discovery Gardens, Al Furjan, Warsan Village, Dragon City, International City and Villas at Nad Al Sheba. Together, these span more than 15,000 hectares and currently provide homes for over 200,000 people. Nakheel’s growing retail project portfolio comprises large-scale developments in Dubai, including Nakheel Mall, Deira Mall, Night Souk, Warsan Souk, Al Khail Avenue, The Circle Mall and The Pointe; major extensions to Dragon Mart and Ibn Battuta Mall; and several neighbourhood community centres. Its existing and pipeline retail projects cover 13 million square feet of leasable space. Nakheel is also developing hotels at various locations in Dubai, including Palm Jumeirah, Deira Islands, Ibn Battuta Mall and Dragon City. g Gulf Property
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Dubai’s 30,000 buildings need green makeover
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Gulf Property Exclusive
ne in every four buildings in Dubai needs green makeover to reduce energy consumption, a latest study says. The emirate has 120,000 buildings for roughly 2.3 million people who collectively contribute in Dubai’s $107 billion economy. “The UAE has a great potential for shifting towards a greener future. In Dubai
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alone, it is estimated that 30,000 out of the 120,000 existing buildings have a high energy saving potential,” Saeed Al Abbar, Chairman of Emirates Green Building Council, said at the recent launch of the Technical Guidelines for Retrofitting Existing Buildings to serve as a guide for UAE industry professionals and building endusers. “With buildings accounting for significant energy consumption, enhancing the energy efficiency of existing buildings through retrofitting procedures will contribute to
achieving our goal to promote a sustainable built environment.” According to the International Energy Agency, costsavings of 28 per cent can be achieved through energy efficient retrofitting. Dubai Government is currently spearheading a campaign for green economy by promoting policies that will reduce energy consumption and increase sustainable practices. Buildings are a major consumer of energy and the government has to generate additional power to cool homes during hot sum-
mer months. Dubai Electricity and Water Authority (DEWA), the staterun utility in Dubai has launched an initiative to install rooftop solar panel to reduce the emirate’s dependence on fossil fuel. As per its energy source diversification plan, it wants to diversify its energy source to power the power and water desalination plants with renewable energy, coal and nuclear energy. Currently, DEWA’s utilities run 100 per cent on oil and gas. Although Dubai is a new city, the majority of the emi-
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Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Dubai Supreme Energy Council, presides over a meeting of the council, discussing strategies and initiatives promoting the green economy, including the introduction of facilities for battery powered hybrid vehicles
Dubai boosts green agenda
ubai Government’s energy authority – Supreme Council of Energy and the state-owned utility provider Dubai Electricity and Water Authority (DEWA) has started taking concrete steps to boost its green agenda by increasing facilities for electric vehicles. “The Supreme Council of Energy, in collaboration with DEWA, is coordinating with a number of government organisations that have large fleets of vehicles, to buy hybrid or electric vehicles in the coming years, in line
with the strategy to reduce carbon emissions in Dubai by about 16 per cent by 2021,” Saeed Mohammed Al Tayer, Managing Director and CEO of DEWA, said. Al Tayer said, The DEWA’s energy demand management strategy includes eight major programmes: green building systems specifications, retrofitting of buildings and cooling areas, and raising standards of efficiency of appliances, equipment and lighting, among others. Each stakeholder will provide the Council with information on the status of retrofitting buildings according to green building standards. Authorities in Dubai have also
started to install battery charging stations for the electric cars. Ahmed Buti Al Muhairabi, Secretary General of the Supreme Council, said, “The Council members were briefed on the retrofitting work by Etihad ESCO on existing buildings. DEWA has invested Dh21 million in retrofitting lighting to provide 68 per cent in power savings, equivalent to 14 Gigawatt hours (GWh) per year for the next three years. We have also invested Dh16 million in seven buildings at DEWA to conserve 31 per cent of their annual power consumption, equivalent to 6 GWh over the next six years.” g
rate’s civil structures were built in the 1970s-2000s when the green building movement did not take off in a big way. “The Technical Guidelines for Retrofitting Existing Buildings have been compiled to leverage on this by reaching out to all stakeholders across the industry and guide them through the process of making existing buildings more sustainable,” Al Abbar said. The guidelines provide an organised collection of economically viable methods that will equip existing building owners in the UAE with the
necessary tools to achieve sustainable and comfortable buildings, as well as specific processes that can be implemented to improve a building’s performance, save money, and prevent further pollution of the environment. The retrofit solutions provided enable immediate and long-term reductions and/or efficiency in energy and water use, improvements in indoor air quality, and effective waste management, with subsequent lowering of utility and labour costs for building owners. Growing trade and tourism
has helped Dubai become one of the top five fastest growing cities in the world, according to a survey of 300 cities by a leading American think tank. Dubai is the fifthhighest performing metropolitan economy in the world for last year the Brookings Institution said, as an uptick in trade and tourism positively impacted the emirate’s employment and GDP per capita during the period. The Brookings Global MetroMonitor survey ranks the economic performance of the world’s largest 300 metropolitan economies over the
“The UAE has a great potential for shifting towards a greener future. In Dubai alone, it is estimated that 30,000 out of the 120,000 existing buildings have a high energy saving potential...”
– Saeed Al Abbar Chairman of Emirates Green Building Council
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period, based on growth in GDP per capita and employment rates. Dubai’s ranking for last year was boosted by a 4.5 per cent growth in GDP per capita and a 6.5 per cent increase in employment during the period. The emirate was ranked 18th in the 2013 survey. The strength of the emirate’s economic recovery since the financial crisis is highlighted by its climb into the top five last year compared to its ranking of 167th in 2012. In 2010 it was second from bottom at 149th out of 150 cities surveyed. However, experts feel, the city needs to improve its green credentials, if it wants to boost its green credentials
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and maintain competitiveness.
Life Safety Dashboard
Saeed Al Abbar, Chairman of Emirates Green Building Council speaks while launching the Technical Guideliness for Retrofitting Existing Buildings
The move comes a few weeks after Dubai Civil Defence introduced Life Safety Dashboard for every building in Dubai. “Every building owner in Dubai will be provided with their individual building dashboard that displays the health and safety status of their buildings through an innovative dashboard. The dashboard will also enable other government departments to facilitate innovative services to building owners
and occupants in Dubai,” Major General Expert Rashid Thani Rashid Al Matrooshi, Director-General of Dubai Civil Defence, said during the launch of The Dubai Life Safety Dashboard last month, which will be implemented in every building in Dubai. The dashboard will allow decision-makers at Dubai Civil Defence, other government departments, stakeholders, building owners and its occupants to view the life safety status of Dubai in real time and determine their roles, responsibility and accountability in a transparent and dynamic manner. Al Matrooshi said, the dashboard is being installed in 40,000
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Alstom sets up Smart Grid Centre in Dubai
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rench infrastructure conglomerate Alstom earlier announced the opening of the first Smart Grid Centre in the Middle East, a major step in its long term commitment to providing sustainable electricity infrastructure to the UAE and the region. The facility in Dubai was inaugurated by Saeed Mohamed Al Tayer, Managing Director and CEO of Dubai Electricity and Water Athority (DEWA), and Grégoire Poux-Guillaume, President of Alstom Grid. The centre, the first of its kind in the region, will enable Alstom’s customers to locally develop and integrate software and perform factory acceptance tests on site. Customised training on all Smart Grid applications will also be provided, using simulated protected customer network data for case buildings in the city while the rest of the civil structures will gradually be brought under the scheme in phases. The dashboard will share the real-time information about the operational status of life safety. This will also enable significant transformation in how performance levels can be enhanced exponentially by sharing realtime information between all the stakeholders to act on information and participate in a transparently and collaborative manner. “The dashboard adds more power to Dubai Civil Defence’s operations and enhances the organisation’s capabilities to analyse data for better decision-making
and organisational performance. It not only enhances the internal communication with regards to monitoring of the fire station and resources, but also demonstrates our commitment towards the residents.” The enterprise-class business intelligence delivered through the dashboard will also help all government departments, building owners and residents to monitor their buildings’ health and safety status in real-time. Dilip Rahulan, Executive Chairman and Chief Executive Officer of Pacific Controls, a global ICT enabled managed services solutions provider, said, the dashboard would share the real-time in-
studies, ensuring to the most efficient implementation of new technologies as customers use Smart Grid solutions to monitor and manage their own networks. “As Smart Grid technologies are integrated to existing infrastructure, customers in the region will benefit from the centre’s close links to Alstom’s stateof-the-art Smart Grid Centres in France and USA, using tools and processes with the latest technologies, and ongoing support from Alstom experts worldwide in real-time,” Poux-Guillaume said. The Middle East region faces increasing demand for electricity, grid reliability, stability, and lower environmental impact, and the introduction of digital equipment and software applications into existing infrastructures will help power generation and electrical utilities to interconnect existing assets and optimise network control, making the most of energy available and ultimately working towards a smarter Grid with a lower carbon footprint. g formation about the operational status of life safety. “This will also enable significant transformation in how performance levels can be enhanced exponentially by sharing real-time information between all the stakeholders to act on information and participate in a transparently and collaborative manner. “Government leaders are deluged with thousands of streams of data about the performance of agencies and programs. To make sense of the deluge of data we receive, we need to present them in a way that makes sense to decision-makers. “Dashboard presenting performance data, Civil Defence can now track key per-
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At A Glance 120,000
buildings currently exist in the emirate of Dubai
30,000
buildings in Dubai need green makeover
40,000
buildings in Dubai will be fitted with Life Safety Dashboard to monitor building life
2.3 million
current population of Dubai
formance metrics of both individual buildings and Civil Defence activities. Data from different sources is being integrated and displayed through informative graphics.” These moves are part of the government’s overall objectives to create a smart city – where a smart grid will integrate the utilities and building supply system and help reduce energy and utility waste and undertake preventive measures. Dubai Electricity and Water Authority (Dewa) had earlier said, it was looking at hiring companies to retrofit the existing and old buildings in Dubai with new technologies that will help them to become part of the smart grid that is under development in Dubai. “We are looking at companies that could install new technologies and retrofit the old buildings with those so that they could become part of the smart grid,” Saeed Mohamed Al Tayer, Managing Director and CEO of Dewa, told at a news conference earlier. g Gulf Property
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Dubai offers healthier return on investment
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By Indrajit Sen Senior Reporter
eal estate market in Dubai offers an average yields of 7 per cent, about 2-3 per cent above the average yield in international property markets, especially when compared to the modest yields that mature markets like London, Paris or New York offer. Traditionally, investors have been attracted by the possibility of high returns from properties in Dubai, in addition to the absence of property tax unlike in other parts of the world. Although of late there has
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been a slowdown in sales of luxury residential units across the emirate, the constant rise of the expatriate workforce has essentially meant that more people are now looking for rented apartments to live in. Rental yields from the affordable housing segment in Dubai – where multiple projects were launched during the first half of 2015 – remain higher than the average yield, experts say. “The average yields at which we have seen transactions happening in the Dubai real estate sector during the first half of 2015 is between 7 to 8.5 per cent. Analysing the two components of return on investment (RoI), i.e. yields and capital apprecia-
tion, over a long term period, we observe the yields to be in the range of 6 to 9 per cent per annum and average capital appreciation in the range of 10 to 20 per cent per annum, making the effective RoI in the range of 15 to 30 per cent per annum,” Aysha Sawhney, Director of MaxGrowth Consulting, told Gulf Property. “However, given the highly dynamic nature of the Dubai market and the fact that it is largely a sentiment-driven one, depending upon an investor's exact timing of entry and exit from a property, his/her specific RoI could be significantly higher or lower than the average RoI,” she added.
Rentals stable in Q1 2015
The first quarter of the year continued to see subdued activity in Dubai’s real estate market. While residential rents remained relatively flat, sale prices saw a marginal decline across both apartments and villas. The first quarter of the year saw the delivery of approximately 730 residential units across Dubai. An additional 22,000 are expected to enter the market by the end of 2015, global real estate advisory Jones Lang LaSalle (JLL) predicts. “This downward trend is expected to continue throughout 2015, as we fore-
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ubai’s office market remained relatively stable over the first quarter, with JLL saying that average rents across the Central Business District (CBD) recording Dh1,880 per square metre and vacancies registering 23 per cent. Demand for Grade A quality stock continues to be robust, particularly in the Dubai International Financial Centre (DIFC) and its surrounding precinct, evident by the rate of leasing activity, Jones Lang LaSalle says. In turn, demand for Grade B office space remains weak, exerting downward pressure on asking rents. The first quarter saw the handover of Central Park in DIFC, adding approximately 130,000 square metre of office space to the market. This brings the total Gross Leasable Area (GLA) to 7.7 million square metres as of
see prices dropping up to 10 per cent by year-end,” JLL states in its Dubai Q1 2015 report. Sales index issued by a Dubai-based Real Estate Investment and Development Information Network (Reidin) depicts a marginal decline in prices across both apartments and villas. This comes as the Reidin rental index shows growth levels dropping to 8 per cent Y-o-Y in February 2015 (from 23 per cent Y-o-Y in Q1 2014). Similarly, the Reidin sale price index shows a decline in growth levels from 30 per cent to 6 per cent over the same period. According to the first quarter of 2015 figures, Dubai Marina and Jumeirah Beach
Q1 2015. Office sales transactions in Q1 remained relatively limited with Business Bay and Jumeirah Lake Towers being the most transacted areas; these areas rose by 2 per cent and 5 per cent respectively. Tecom saw the largest year-on-year increase of 14 per cent. DIFC supposedly offers rental yields of 6.75 per cent for prime offices. “For commercial investments by institutions or large individual investors, transactions have slowed due to wide bid-ask spreads”, Jesse Downs, Managing Director of Phidar Advisory, told Gulf Property. “Owners are holding out for yields that are less attractive to investors now. In other words, yields based on asking prices are difficult to justify when compared with other markets. In the commercial market asset-specific issues augment these gaps. For example, in office building, tenancy is often dominated by one year renewable contracts. This inResidences (JBR) recorded a total transaction value of Dh1.08 billion, spread across 512 deals, which equates to an average deal value of Dh2.11 million. During the same period Emirates Living recorded total sales of Dh808 million, from 245 transactions. “The residential leasing market has remained broadly stable for a third consecutive quarter, with only minor changes in rental rates recorded. The market’s relative stability during the past nine months is reflected in the huge swing in growth figures from 27 per cent in the year to Q1 2014 versus 3 per cent in the year to Q1 2015,” Matthew Green, Head of Research and Consultancy
creases the risk profile of the asset. “Another common issue is poor asset maintenance, which accelerates depreciation. We’ve seen many owners opting for inexpensive properties,” she explains. Optimistic industry players believe Dubai has seen expansion in several major sectors, particularly finance, pharmaceutical and technology, and such an expansion creates jobs and stimulates demand for office space. David Godchaux, CEO of Core Savills brokerage firm, gives a modest estimate saying that quality office average yields in Dubai will be between 6 and 7.5 per cent. “This year will see a very mild softening due to largely external factors such as the appreciating US dollar. We foresee increase in prices and rents in prime office areas, such as Downtown, DIFC that generally see very high level of occupancy and strong resilient demand for quality office space,” he says. g UAE, CBRE Middle East, said. He feels that with residential sales prices expected to decline faster than rents in the coming months, saying, “We may start to see yields move out as we progress through the year.”
Return on Investment
The overall growth of the Dubai market, supported by factors such as security, a tax-free haven and a safe investment structure, makes realtors assure lucrative returns. Moreover, Dubai emerging as a more mature market for real estate post the 2008 recession, has gar-
ROUNDUP
Matthew Green, CBRE
Jesse Downs, Phidar Advisory
nered investors’ confidence. Maya Whiteley, Director Transaction Real Estate at Ernst and Young MENA, says developers often price units at rates that would achieve profits higher than their targeted returns. This enables them to offer rebates in the form of guaranteed returns to buyers for a limited number of years. The return on a property generally depends on its location, surrounding infrastructure, quality of construction and of course the developer’s repute. However, in certain cases developers/brokers promise ambitious yields based on their knowledge of the market, which at times can be lower than the average marGulf Property
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David Godchaux, Core Savills
Clementine Malim, Ascot & Co
ket RoI rate. Experts advise buyers not to fall for the illusion of investing in a high-return property and make informed decisions. Aysha Sawhney says that in Dubai the guaranteed ROI concept is more often than not a ‘marketing gimmick’. “Once you go through their detailed terms and conditions, you will find so many caveats in their guaranteed return claims that covers them up in the event of actual returns from these properties being lesser than what they were supposedly guaranteeing at the time of sale of the property,” she comments. It is not uncommon for some developers to factor in a guaranteed yield in the sale price, which can create
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an illusion for buyers. “There is a double loss here for the buyer,” David Godchaux, Chief Executive Officer of Core Savills brokerage firm, explains. “Firstly, he will overpay for the property as the subsidised guaranteed rent has been factored in by the developer and added to the price. Secondly, when the guaranteed period is over, very often the owner will find out that market rents are not anywhere close to the subsided rent he was getting during the guaranteed period, and he will have to readjust the asking rent in order to get the property leased (with of course a negative impact on the property price should he decide to exit).
“Initial yields are an important instrument when acquiring real estate, but investors should also follow a holistic approach to their investment, not stopping their analysis at the first few years return (guaranteed or not). There are several other basic tools like NPV [Net Present Value], IRR /modified IRR [Internal Rate of Return] that should always complete the picture.” Kalpesh Sampat, Director at the Dubai-based brokerage firm SPF Realty says realtors mostly guarantee returns on ‘hospitality related assets’, such as hotel apartments, as they compute RoI assuming returns based on current room rates and occupancy levels. However, he says, the returns can sometime be lower than these es-
timates, as the current room rates vary based on the location and rating of the project/ asset, while a new hotel/asset may not be able to achieve the same rate/occupancy levels. “The prices of many of these assets are on the higher side to offset lower room rates or occupancy levels. And that means a buyer is buying at higher then market price. We urge buyers to do their due diligence when purchasing assets with guaranteed returns,” Sampat advises.
Better yields
Developers have been launching projects in Dubai since the start of the year. Major builders, the likes of
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Kalpesh Sampat, SPF Realty
Emaar, Nakheel, Dubai Properties and wasl, are focussing equally on the old areas of the city by launching redevelopment ventures, along with building projects in prime locations. Major project announcements in old areas like Dubai Creek, Deira, Naif, Ras Al Khor and Karama have created ripples in the market. Prime locations in Dubai, such as the Downtown, DIFC, Business Bay and Dubai Marina have shown signs of maturity and have witnessed fewer project launches. Developments in these prime locations now mostly comprise single buildings. However it is the upcoming areas, with good availability of land, where developers are rushing to
launch projects. Places like DWC, DIP, Sports City, Motor City, International Media Production Zone (IMPZ) and Mohammed Bin Rashid City have attracted the attention of investors and end-users alike, mostly due to the fact that returns from properties in such locations would be handsome. The Springs community is reportedly proving to be a high-yielding investment as rentals have gone up by up to 10 per cent, while prices have gone down by 25 per cent on an average, in the last 12 months. “Upcoming areas such as Sports City and Dubai Silicon Oasis offer highest yields from 13 per cent upwards. Although less desirable lifestyle options, these properties rent quickly and most
landlords bought off plan and are reaping the benefits now,” claims Clementine Malim, Client Manager, Ascot and Co – a Dubai-based brokerage company. Rental rates, on average, remained unchanged in Q1 2015. However, certain adjustments, either upwards or downwards, were witnessed across select areas, with less desirable properties lowering their asking rates to attract tenants. “Some increases were witnessed in newer communities, such as Jumeriah Village (+4 per cent year-onyear) and Dubai Sports City, as these are better established and vacancy levels are low. The highest yearyear-on-year apartment rental increases were found
Maya Whiteley, Ernst & Young
in Palm Jumeirah (+16 per cent),” John Stevens, Managing Director of Asteco, told Gulf Property.
Luxury Vs Affordable
The high demand for budget housing in Dubai has led both existing and new developers to plunge into this segment. Multiple affordable housing projects were launched in H1 2015 in various locations of the emirate. Although endusers are apparently the highest buyers of budget properties, investors too have begun cashing in on this segment, as such units come at low prices but promise great returns. The RoI for a developer is higher on luxGulf Property
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ury properties just due to the fact that the higher selling price of the unit, experts say. “Affordable property always sees better yields. Prime real estate typically shows lower yields and better long term capital preservation or appreciation,” Godchaux predicts. Affordable developments, such as International City and Discovery Gardens, offer high RoI, as these two communities are among the few recognised locations offering budget housing and have been addressing the gap for low-cost housing in Dubai for a number of years. “The yields are higher in case of an affordable property, but the capital appreciation can be higher in case of luxury properties, provided entry and exit are made at the right time,” Sawhney opines. “However, the downside risk in case of affordable properties in good locations is much lower than that of luxury properties. Accordingly, if the investor considers RoI in conjuction with the risk reward ratio, affordable properties in good locations will be better off compared to luxury properties.” Affordable housing projects have enabled the mid-segment in Dubai to now own properties, rather than live on rent. Thus as property-owners in Dubai grow, there is a chance that the number of renters will shrink. So ‘will people buying more going to impact rental yields?’ is a question that an investor would probably ask. “Not really. As much as Dubai builds more housing to accommodate the growth hundreds of thousands of expatriates arrive and still chose to live in Prime areas such as The Marina and Downtown for both lifestyle and comment,” Malim says.
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As long as Dubai's population keeps growing at a rapid pace and the demand-supply equilibrium for rental properties is maintained, the yields may still be maintained at the current levels, as the rental demand reduced due to some of the residents buying these affordable housing properties would be substituted by rental demand from these new residents moving into Dubai. “The key to maintain the rental yields at their current levels is the continuous growth of Dubai's population through creation of more business and employment opportunities,” Sawhney opines.
Global markets
Dubai fares incredibly well in terms of average yields compared to more traditional in-
ternational markets such as London. In prime central London one would be expecting to see returns of maximum 4 per cent. However in the prime property sector in Dubai, one could expect returns between 5 to 8 per cent on villas and 8 to 11 per cent on apartments. Although the Dubai real estate market has been maturing over the past few years, it is still very much an emerging market in many regards. The risk factor plays an important role in determining yields, and investors looking at much deeper markets such as London, New York or Paris will continue to accept lower yields compared to Dubai for years to come. “In Dubai, property yields for individual residential units are often higher than in markets like London or New York. However, the yields
should be higher in Dubai because it has a higher risk profile. Volatility is commonly used as a measure of risk and Dubai is a highly volatile market. Markets like London and New York have a long, stable track record and are located in developed countries with low risk profiles backed by legal systems that balance investor and tenant rights. Generally, there is a positive correlation between yields and risk – higher risk should generate higher yields,” Downs says. Sampat also believes that one of the key reasons why Dubai offers high RoI on property is because of its tax-free characteristic, which puts it at a significant advantage when compared to a market like Mumbai. However, as Dubai continues to become a global hub, yields however will be com-
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John Stevens, Asteco
pressed. Moreover, rental yields in Dubai have come under pressure consistently over the last few years. While it was common to achieve up to 10 per cent depending on the asset class about seven years ago, investors quickly recognised the value and relative stability of this market which pushed property yields to the 7 per cent level by 2013. Since 2014, yields have ceased their descent and have remained stable at 7 per cent owing to cautious investor sentiment. Following two years of strong growth for Dubai’s residential sales, 2014 was a year of stabilisation with moderate growth during the first half of the year followed by a decline in H2. The slowdown in activity for the second half of the year can be attributed to the delivery of
new supply and the impact of low global oil prices on key source markets such as CIS and GCC countries. As an emerging market, Dubai is affected by macroeconomic changes in other parts of the world and investors’ behaviour is reflective of this influence. Global stability and global growth are both important for Dubai, which market itself as a global hub. Exogenous shocks like the fall of the Russian Ruble and the difficulties faced by the Russian economy had and will continue to have a certain impact on the Dubai economy. Instability in the Eurozone, and sustainability of China's GDP growth are also potential threats to the global economy, and hence the Dubai real estate market. On another note, as the Indian real estate market de-
Ayesha Sawhney, MaxGrowth
velops and continues to offer quality properties, Non-Resident Indians (NRIs), who are the largest buyers of property in Dubai, are now getting lured by the similar properties back home. Paradoxically, sustained low oil prices, which typically support growth in most parts of the world could also have a long term negative impact on Dubai because of the regional instability it may trigger, and the high mid-term dependence of Abu Dhabi on higher oil prices. However, Godchaux says investor sentiment will be high in Dubai, “As long as the rest of the world steadily grows, global and regional corporate investors in Dubai support prices and rents on the office market, create jobs which translate into renters on the residential market, supporting prices and rents
there too, and creating demand for retailers, and retail space.” Knight Frank also offers a positive investor outlook in its report saying: “Against a backdrop of low interest rates globally and relatively volatile financial markets regionally, the flow of capital into real estate has continued. Demand for institutional quality assets across Dubai and other key GCC centres has been rising, assisted by numerous factors, including the fact that yields remain relatively high in context of other global cities.” Local factors most importantly dictate market dynamics. The UAE-wide Federal Mortgage Cap and Dubai’s doubling of Property Registration Fees last year have together gradually and successfully contained the market, with a decrease in speculative activity from investors. “The upward creep of project completions, coupled with the slow motion impact of new real estate regulations and the general dent to sentiment as a result of the slowing rate of house price growth, in a sentiment-driven market has weighed heavily on the emirates residential market, with the 2015 outlook remaining somewhat mute, with villas expected to bear the brunt of price declines,” Richard Paul, Director – Head of Residential Valuations, Cluttons Middle East, told Gulf Property. Analysts believe that despite investors still remaining as the dominant force in the Dubai real estate market, end-users today also have significant sway over the market’s movements. A buyer today makes a much cautious and informed property purchase decision, than the pre-recession times. g Gulf Property
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Meydan Sobha raises Dh10b from villa sale
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By Indrajit Sen Senior Reporter
ales revenue generated from 631 villas within Phase I and Phase II has created a Dh10 billion revenue base for Meydan Sobha, developers of the Dh36.7 billion (US$10 billion) master-planned luxury residential neighbourhood – Mohammed Bin Rashid City District 1 at Meydan City, a top official said. Meydan Sobha released the sale of 631 villas under
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the Phase I and Phase II in 2013, construction of which is progressing fast with deliver of the 261 villas under the Phase I is scheduled for mid 2016, he said. “The sale of the first two phases gives us a revenue base of Dh10 billion,” PNC Menon, Chairman of Sobha Group, whose company had partnered with Meydan City Corporation to develop the project. “We hope to deliver the first phase of the project on time by mid 2016 and the next phase by 2017, as we prepare to launch the sale of Phase III and Phase IV.”
Prices of villas range between Dh16 million to Dh25 million depending on the size, configuration and location within Mohammed Bin Rashid City District 1 – a 50:50 joint venture between Meydan LLC and Sobha LLC. Menon says that the company is developing the project with its own resources and from sales proceeds. Construction and interiors are all done by Sobha LLC – which has a fully integrated construction and interiors set up in Dubai. At present, 4,000 workers are working to meet the deadline at a rate of
3 million man hours presently. The number of workers are expected to jump to 7,000 at its peak construction activity. “We have a positive cashflow from the sale of properties from 52 different nationalities and we do not need bank finance to finish the project,” Menon, who is credited to build some of the finest palaces and civil structures in Oman, Kazakhstan and India. “This is a super luxury project close to the new central business districts of Business Bay, Downtown Dubai with a skyline graced with
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Burj Khalifa – the world’s tallest tower. This is the closest luxury villa community to Burj Khalifa and conveniently located within Mohammed Bin Rashid City and Meydan City, that adds to the project’s attractions. “For buyers of such properties, price and payment is not the issue. What is important to them is the convenience of location, lifestyle, surrounding infrastructure and environment and they are ready to pay for these, if delivered with the promised quality and timeframe.” Menon said the project has seen a ‘good mix of buyers
from around the world’. “The first set of buyers is primarily Indians,” Menon told Gulf Property. “The second prominent group of buyers are the Saudis. Then we have other regional nationalities like Qataris, Kuwaitis, Iraqis, Iranians, as well as British expats buying in the project,” he said. Menon said, out of the 631 luxury villas that were released to the market, 511 have been sold. “One third of the total project is already sold. Our buyers are very happy with the location,” he stated. He also believes that about 80 per cent of the buy-
ers of this freehold project are end-users. The freehold Mohammed Bin Rashid Al Maktoum City District One project – located within the Mohammed Bin Rashid City master development – has attracted healthy investments due to its convenient location. The project, off Al Khail Road, is in close proximity to Downtown Dubai and Business Bay, with the Burj Khalifa and the Dubai Mall being just about 4 kilometres away. The master development also has access to Dubai’s other arterial roads such as the Sheikh Zayed Road, Mo-
hammed Bin Zayed Road and the Dubai-Al Ain Road. “You cannot repeat this project in this country. There are other villa projects elsewhere, but ours is right in the heart of the city,” Menon commented. Menon declined to name the bank in which the developers have the escrow account, saying “We are a private and conservative company.” Construction of the 267 sold-out villas in Phase 1 is on track for delivery, and Meydan Sobha expects to hand over to buyers by mid2016. The villas in Phase 2, most of which have also been sold, are due for delivery in mid-2017. “We are incredibly proud of the progress made so far and feedback from our customers has been fantastic. With construction hitting targets for both Phase 1 and Phase 2 we are looking forward to another successful year ahead as we gear up for delivery of Phase 1 starting in mid-2016,” Mohammed Ahmed bin Abdulaziz Al Shehhi, Board member of Meydan Sobha, was quoted in a press release as saying. “We are doing the construction ourselves, so we have total control on the quality and time. We don’t believe in subcontractors,” Menon specified. Wade Adams Contracting LLC has been appointed as the infrastructure contractor. Menon said, his engineers are making ‘minor corrections’ to the villas to be delivGulf Property
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At A Glance
Dh36.7 billion value of Mohammed Bin Rashid City District 1
Dh10 billion
sales revenue generated through sale of Phase I & II
1,500
villas are expected to be built at MBR City District 1
261
villas are to be handed over by mid- 2016
ered in Phases 3 and 4, they expect to announce plans and even launch sales by the end of the year. The District One project will cover an area of over 1,100 acres or 48 million square feet, with 60 per cent of the area being allocated to green and open spaces. The lowdensity project also boasts of a 7 kilometre-long ‘Crystal Lagoons’ project, dubbed as the largest man-made lagoons, which is expected to be delivered in mid-2017 along with the Phase 2 villas. Besides, the project will also feature 14 kilometres of artificial beach walk and 8.8 kilo-
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metres of cycling and jogging track on the circumference. The District One project would comprise of a total of 1,500 residential villas, all of which are being prominently offered in three architectural styles: Arabic, Mediterranean and Modern/Contemporary. Villas start with the basic 4 bedrooms, with an area of 6,126 square feet, and go up to 8 bedrooms. All villas are equipped with swimming pools and a maid’s room and offer commanding views of the Dubai skyline, particularly the Burj Khalifa. The prices start at Dh16 million for a 4 bedroom villa.
“We have a pricing structure which is very detailed. We are currently selling at Dh2,500 per square feet for regular villas and Dh2,700 square feet for waterfront villas,” Menon explained. The 4 and 5 bedroom contemporary villas are the most popular among buyers. Meydan Sobha has taken on board several Islamic and non-Islamic banks for offering mortgage finance to its customers. “We have a number of banks already participating with us. They include Abu Dhabi Islamic Bank (ADIB), Noor Islamic Bank and Emirates NBD,” Ajay Ra-
jendran, Vice Chairman of Sobha Group, told Gulf Property. The banks are also offering an interesting on-plan loan structure. Presently, the banks are offering up to 50 per cent in loans and the financing percentage would go up as construction of the project nears completion, Rajendran stated. District One will also feature entertainment, retail and hospitality offerings, to be developed by Meydan Sobha. The developers are in negotiations with retail brands and hotel operators for the project.
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NEWSUPDATE PNC Menon, Founder and Chairman of Sobha Group, talking to the media
Dubai market to bounce back
Menon says the media often paints a grim picture of the Dubai market. He cites the example of Dubai suffering the 2008 economic recession and eventually emerging out of it as a mature market by 2012, to be a proof of the emirate’s strong economy. The Western markets are still reeling from the 2008 crash and the ongoing Eurozone crisis has worsened things further, he states. The slowdown in the Dubai market started from July last
year, according to Menon. “But I also feel that now the momentum is beginning to pick up. Summer is in and by the end of this year we expect the market to be back to its normal condition,” he predicts. “We have been in the real estate business for many decades. It’s a cyclical business,” Menon says. “Dubai is one of the most sustainable cities in the world,” he affirmed. He is of the opinion that the Dubai property market is presently transitioning through the slump side of the cycle and hence transactions
in the market have declined. He believes that a market going into a cycle is a sign of ‘reality and maturity’. “We always try to model a product (project) based on the cycle,” he said. Location is key in a market like Dubai, and even during dull periods, developers can charge prices above the market rate for their projects in areas such as Downtown Dubai and its vicinity, Menon said in reference to the District One project. Sobha Group is also developing its flagship residential project ‘Sobha Hartland’ near to the Mohammed Bin
Rashid Al Maktoum City District One and expects to deliver the development by end of 2017, as Gulf Property had earlier reported in March. Quashing media speculations that Meydan Sobha was facing challenges in developing the District One project, Menon said, “I have never done (developed) anything that is below par. I have been in the real estate industry for 46 years now. My whole life I have been working on spacious homes and high end apartments. There are no challenges and we are on track.” g Gulf Property
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DLF banks on Gurgaon to sell Garden City
I
By Indrajit Sen Senior Reporter
ndia’s luxury real estate developer DLF believes the north Indian city of Gurgaon is growing for two key reasons. Firstly, it is in close proximity to the national capital Delhi and its Indira Gandhi International (IGI) Airport. Secondly, Gurgaon – part of the National Capital Region (NCR), as well as the state of Haryana – is a booming industrial, ICT and retail hub. A senior sales official
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claims DLF’s sales response in Dubai has been good over the years and it presently has about 150 customers for its flagship ‘Garden City’ project. He said the developer is presently focussing on ‘building a good rapport with customers’ and is trying to bridge the distance gap. “We have a good customer base in Dubai,” Devanshu Sharma, Assistant Marketing Manager, DLF, told Gulf Property during the Indian Property Show 2015 in Dubai. “Recently we interacted with our existing customers during a CMS (Customer Relationship Management) meet before
the Indian Property Show to get their feedback and resolving their issues. We are focussing on customer service, apart from bagging more customers.” The developer was mostly seen showcasing its portfolio of upcoming projects in Gurgaon to NRIs during the property exhibition. Garden City – a master development of 600 acres – is DLF’s most significant market offering in Gurgaon. “Every major company in India has an office in Gurgaon. Today it is the upcoming IT, mechanical, engineering, retail and educational destination,”
Sharma said Although DLF is aggressively pursuing operations in the wider Delhi NCR region, having delivered about 16 residential projects there, the developer has considerable presence in other Indian cities too. DLF has already developed and is moving ahead with various other projects in Chennai, Bangalore, Kolkata, Kochi, Goa, Kasauli, Chandigarh and Panchkula. According to Puneet Anand, Assistant General Manager – Marketing, DLF, the developer’s projects are mostly self-financed, as sales proceeds and rental in-
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G
Godrej upbeat with response from GCC
odrej Properties received a strong response from the GCC market for its four million square feet of projects worth ₹30 billion (Dh1.73 billion; $472.27 million), a top company official said. In the last four years, the Mumbai-based developer claims to have sold 500,000 square feet of projects to NRIs and generated ₹3.5 billion (Dh202.38 million; $55.10 million) in revenues during last year alone. “Dubai has been a primary market for us. About 70 per cent of our GCC sales come from Dubai alone,” Bhaskar Jain, Senior Manager – Middle East, told Gulf Property in an interview. He says the response from Dubai-based NRIs to a prelaunch (off-plan) project is particularly strong. “Prelaunches, we have observed are popular in Dubai, as they offer people more time to buyers, about 4 to 5 years,
come from commercial projects are enough to fund developments. DLF is listed in the two major stock markets in India, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), where its shares have been trading well recently. The developer also has tie-ups with popular public and private Indian banks, the likes of State Bank of India, ICICI and HDFC to offer mortgage finance to customers. DLF has been operating in the real estate sector for over 50 years now. It was reported that DLF had expressed interested in
to make their payment through instalments,” he said. During the Indian Property Show, Godrej Properties – the real estate arm of one of India’s largest business conglomerate Godrej Group was thus seen selling about 70 million square feet of its off-plan projects located across 12 cities in India. The developer, which has been in existence for 25 years now, is however focussing on its projects in Mumbai, Delhi NCR and Bangalore, Jain told this magazine. In Mumbai, Godrej has recently launched a high-end project in the Chembur neighbourhood named ‘Godrej Prime’. Spread over 3.5 acres, the project is a redevelopment venture that comprises multiple buildings of 15-storeys each, and a saleable area of 750,000 square feet. Residential units are offered in the 2, 2 and a half and 3BHK categories, with the 2BHKs being priced at ₹16 million (Dh926,000; $251,843) and the 3BHKs at ₹30 million (Dh1.73 million; $472,221). Godrej Properties is developing another redevelopworking in India with major Dubai-based realtor Nakheel, although “talks did not materialise”, Sharma told this magazine.
Garden City in Gurgaon
The mixed-use Garden City development consists of about 8 residential projects; ‘Skycourt’, ‘Ultima’, ‘Regal Gardens’, ‘Primus’ and ‘New Town Heights’ being some of them. Being a high-end development, Garden City does not offer 1BHK apartments and few 2BHK apartments. Units are offered mostly in the 3
ment project in the prime Mumbai area of Byculla, details of which are yet to be revealed. Besides, the realtor is also working on several other projects in the cities of Gurgaon, Bangalore, Pune, Chennai, Kolkata, Ahmedabad and Nagpur, suited to the local market and demand. Property prices in Mumbai are not unaffordable and the market is stable now, is what Jain believes. He also says that Mumbai now also offers good products to end-users. “It (the market) is not overpriced but stable. It is a good aspect for people looking for end-use now. People now have sufficient time to choose the property and pay for it,” he mentioned. On the back of healthy domestic and global sales revenues, Godrej Properties in Q1 2015 reported a 6 per cent increase in consolidated net profit at ₹514.4 million (Dh29.73 million; $8.095 million), according to the Indian media. g
– Indrajit Sen Senior Reporter and 4BHK categories, with prices starting at ₹1.25 crores (₹12.5 million, Dh716,000) and exceeding ₹7 crores (₹70 million, Dh4 million). The residential projects in Garden City are in various stages of construction and more than 400 families are already living in the community, Sharma claims. “Some are ready to move in, some are nearing completion, some we have broken ground on and some we still haven’t launched,” Sharma said. “The structure for Skycourt is ready and the units will be ready in another 2 years. Primus is nearing
INDIACORNER
completion. The structure of Regal Gardens is almost ready. New Town Heights is a project that people are already living in.” The basic infrastructure like roads and garden beautification has been completed and DLF expects to develop the whole of Garden City by 2020. DLF, Sharma says, “Has taken many new initiatives in the Garden City. We have launched a ‘green drive’, opened schools including 2 global schools. We have a petrol pump coming up there. There will be convenience and medical stores and the club house is already operational.” DLF is also trying to tap the Japanese expat community in the area to live on rent in the Garden City apartments. “Our properties are close to the industrial locations and so we are also trying to boost the rental value of the area,” Sharma claimed. Apart from the flagship Garden City project, DLF has delivered and is developing multiple other projects in Gurgaon, and is trying to popularise a ‘5 minutes to work’ concept by building residential and commercial projects in close proximity, Anand said. The developer has to its credit building one of the largest IT parks in India, the 200 acre ‘Cyber City’, and a premium golf development ‘DLF Golf and Country Club’. Anand revealed that DLF on its land bank in Sectors 74A and 75 is trying to ‘replicate the Cyber City project’ by developing another commercial project named ‘Corporate Greens’, which it will offer both on sale and on leasehold basis. g Gulf Property
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Lodha to deliver the world’s tallest residential tower in ‘16
C
By Indrajit Sen Senior Reporter
onstruction of the world’s tallest residential tower in Mumbai is ‘steadily progressing’ and has currently reached the 83rd floor, a senior sales official of developer Lodha Group told Gulf Property recently. ‘The World One’ – a 423 metres tall building of 117 floors – is located in the upscale Worli area of India’s financial capital. The builder expects to complete construction in ‘one and a half years’ time’, or 2016. There were previous media reports that said construction
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of the World One tower had run into troubled waters, as authorities such as Mumbai’s municipality, had denied Lodha Group the permission to continue building, as the developer had flouted altitude and other civic regulations. “As opposed to rumours, we didn’t face any problems with the construction of this iconic project,” Abhishek Sehgal, Sales Manager at Lodha Group’s Dubai office, said. “Yes things like the aviation approvals do take time as they are staged approvals. But we are on the 83rd floor of construction now and we should reach 117 storey in another year’s time or so,” he said. World One is the taller of the two-tower project named
The World Towers by Lodha Group. Construction of the shorter tower, the 60storeyed World Crest is completed and will be up for possession in December. It has been reported that apartment prices at the ₹50 billion-worth (Dh2.89 billion; $790 million) World One tower, start at ₹75 million (Dh4.33 million; $1.2 million) and can go up to ₹500 million (Dh28.92 million; $7.9 million). Sehgal did not wish to comment on the pricing structure as it has not been announced publicly by the developer. Lodha Group has roped in Dubai-based contractor Arabian Construction Company (ACC) to be part of the construction team, which includes global firms such as
Pei Cobb Freed & Partners, BuroHappold and Barker and Mohandas. The developer has also taken on board luxury lifestyle brand Armani, hospitality brand Six Senses and concierge services brand Quintessentially for the World Towers project, Sehgal said. The Mumbai-based Lodha Group is one of India’s largest real estate developers and caters mostly to the high-end segment. The company started its operations in 1980 and has 38 projects under construction and delivered mostly in Mumbai, and also in Pune and Hyderabad. The developer has recently forayed into the overseas market by launching two residential projects in London. “We are developing two top-
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end residential projects in London presently; one on Grosvenor Square and the other on Canary Square. Sales should start by yearend. London is Lodha’s overseas focus now,” Sehgal told this magazine. The GCC also features prominently in Lodha’s foreign sales strategy, as it seeks to tap into the massive Non-Resident Indians (NRI) customer base in the region. “We started our Dubai operations two years back by launching a full-fledged office. The entire Middle Eastern market has been pretty important to us and we have been strong here,” Sehgal said. “Sales wise the response we have received has been good. Our average annual sales are close to around ₹700 crores (₹7 billion; Dh406 million; $110.26 million) from this market alone,” he revealed. “So far we have a large client base in the UAE and we focus on the existing clientele.” Bollywood star endorsing
Mumbai’s ‘sister city project’ Popular Bollywood celebrity and veteran actor Amitabh Bachchan is endorsing Lodha Group’s ambitious mixed-use project ‘Palava' – dubbed as ‘Mumbai’s sister city’ and sprawled over an area about 4,500 acres in the Mumbai Metropolitan Region (MMR). “The project will have 20 schools, a university, shopping malls, Olympics-sized cricket and football stadiums, golf courses, clubhouses and numerous other facilities,” Sehgal says. Lodha Group plans to deliver the Palava master development in 3 phases. “Palava City is a huge project. Typically the whole of the project is one-fourth the size of Mumbai. So it will take time. But yes, we work phase-wise. By 2020 Palava City will be delivered,” Sehgal claims. The first phase of the project, spanning 250 acres, has already been delivered and around 11,000 families are already living there, Phase 2
will be delivered by 2017, following which construction of Phase 3 will start. Lodha has made a distinction between the pricing structures of residential units in Palava City based on the phase of construction the building is in. “So, we have a base price configuration for different unit types. If you are buying in a ready to move in project, the rates will be higher. For an under-construction property the rates will be comparatively lower,” Sehgal explains. For ‘Exotica’, a ready to move in project in Phase 1 from February 2016, the base price is ₹5200 per square feet (Dh300). Therefore for a two and a half bedroom apartment, the starting unit at Exotica, the price would be in a range of ₹85 to 89 lakhs (₹8.5 million to 8.9 million; Dh491,800 to 514,945). Lodha Group says it has already sold about 23,000 residential units in Palava. By 2025, the developer expects Palava to house 100,000 families. Such a project,
which is a ‘city within a city’, requires huge finances. The developer says it ‘is a cashrich company’ owing to the large amount of money it collects from sales proceeds worldwide; close to ₹7000 crores (₹70 billion; Dh4.050 billion; $1.10 billion) is what it earned last year, Sehgal says. “Plus we have investments from private equity and other sources. We work on a project basis. For one of our projects known as the ‘Park’ in Worli (Mumbai), we had bank funding from JP Morgan and Deutsche Bank. But that has already been paid off. So bank loans are project-specific,” he stated. A developer being publiclylisted is common in India, although Lodha Group, being a reputed developer, is not yet on the bourse. Sehgal says that the management had not felt the need to go public due to the company’s sound financial status. “We are not in need of too much liquidity at this point of time,” he said. However Lodha Group is contemplating getting listed in the Indian stock market within the next 2 years. The developer says it has banked on its projects USPs to cement its brand. The quality of construction and the global brands it works with is its strongest advantage, it believes. “The next would be the credibility that comes with buying a Lodha property. We have delivered 14 projects in and around Mumbai. Thirdly, it would be our large customer base, which cuts across segments. So you have people from various backgrounds and cities buying with us,” Sehgal says. “We do not just erect a building; we plug in various facilities and amenities and deliver a lifestyle.” g Gulf Property
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Mahindra lures NRIs to Dh3.5bn projects
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By Indrajit Sen Senior Reporter
ndia’s Mahindra Lifespace Developers Limited has announced that it is currently working on 12 projects across the Indian cities of Mumbai, Pune, Delhi NCR (National Capital Region), Hyderabad and Chennai and the total value of these projects would top ₹60 billion (Dh3.45 billion; $939 million). For the Mumbai-based developer, international sales account for 20 per cent of its total revenues. And NonResident Indians (NRI) based in Dubai and the GCC account for half of that foreign proceeds figure, a senior management official told Gulf Property. Realising this significant demand from NRIs for properties back home, Mahindra Lifespaces – the real estate and infrastructure development arm of the $16.5 billion Mahindra Group – in May opened its first international
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Anita Arjundas, Managing Director and CEO of Mahindra Lifespace Developers , and Smeeta Neogi, Vice-President for Marketing of Mahindra Lifespace Developers at a briefing in Dubai
sales office in Dubai. “The GCC region is a key market for Mahindra Lifespaces with more than 50 per cent of our international sales coming from this region. One out of every three international customers investing in Indian real estate resides in this region,” Anita Arjundas, Managing Director and CEO, Mahindra Lifespace Developers Ltd, told the media while announcing the opening of the office. “The Dubai representative office will allow us to directly
engage with and address the needs of the Indian diaspora who want to stay connected to their roots,” she said. The representative office is located in Sultan Business Centre, next to Lamcy Plaza in Bur Dubai. The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE)-listed developer claims that it offers projects in both the affordable and luxury segments, with a vast ticket size that starts from ₹11 lakhs (₹1.1 million; Dh63,378) and ex-
ceeds ₹40 crores (₹40 million; Dh2.3 million). The developer has two categories of buyers from Dubai: The affordable homes buyer and the luxury properties’ investor. However, buyers who purchase properties within a budget of ₹40-60 lakhs (Dh230,420), account for the major share of sales in the GCC. Interestingly, Arjundas also says that 80 per cent of the NRI investors are ‘self-financed’, while the rest avail
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he Mahindra conglomerate was launched in 1945 in Ludhiana by the Mahindra brothers K C Mahindra and J C Mahindra and Malik Ghulam Muhammad, two years before India became independent of British rule in 1947. Mahindra and Muhammad is what the M&M abbreviation actually stood for. After the partition of India, Muhammad withdrew and eventually went on to become the first finance minister of Pakistan. “The story goes that the Mahindra brothers did not have enough money at that
mortgage options. Mahindra Lifespaces has tie-ups with 10 Indian banks for each of their projects, including State Bank of India (SBI), ICICI, HDFC, Axis Bank, she told this magazine.
Array of projects
As part of the 12 projects (that are to be delivered within the next 5 years) Mahindra Lifespaces is currently developing, two are ‘Happinest’ brand projects – the developer's affordable housing venture. The two pilot projects, one in Boisar in the Mumbai Metropolitan Region and the other in Chennai, ‘endeavours to make homes more accessible and affordable to customers through financial inclusion and the use of innovative technologies and approaches to construction’, the developer says in a statement. The residential and commercial development footprint of Mahindra Lifespaces
point of time to sustain in business, and hence felt it was simpler to retain the M&M brand and renamed it as Mahindra and Mahindra Limited in 1948,” Anita Arjundas, Managing Director and Chief Executive Officer, Mahindra Lifespace Developers Ltd, said. Currently based out of India’s financial capital Mumbai, the $16.9 billion group employs more than 200,000 people in over 100 countries. Mahindra has been ‘closely associated with India’s growth’, according to Arjundas. “Initially the company focussed on the agrarian economy, providing utility vehicles for mobility purposes in village and urban areas. The 90s saw us shiftcomprises over 8.92 million square feet of completed projects, and over 10.38 million square feet of projects in the pipeline. Aside from the current projects, Smeeta Neogi, Vice President – Marketing, revealed that Mahindra Lifespaces plans to launch its first project in India’s ICT capital Bangalore in June. The ‘Windchimes’ project is sprawled over 6 acres of land, of which 82 per cent is green spaces. The project, for which the developer is awaiting certain approvals, offers 400 units in the 3 and 4BHK categories. The developer will soon launch another project in the Andheri (East) area of Mumbai named ‘Vivante’, Neogi said. Mahindra Lifespaces has an average of 3 projects in the cities it has presence in; an edge above the panIndian developers’ average of 2 projects. “Our focus markets (in order of priority) are Mumbai, Pune and Bangalore and then come Hyderabad and Chennai. We want
ing to financial services, telecom and eventually ICT. “We also got into the urban infrastructure and real estate business by launching Mahindra Lifespaces and Mahindra Holidays,” she said at a press briefing held recently. In recent times, the Mahindra conglomerate has ventured into the defence, aerospace and renewable energy sectors, which Arjundas describes as ‘the new drivers of the Indian economy’. “In the 60+ years of our existence we have been market leaders in the spaces we operate in. The Group is well respected nationally and globally for its transparency, governance and sustainable practices,” she said. g to increase our market share in each of these projects,” Arjundas told this magazine. Apart from acquiring land in these metropolitan markets to develop future projects, Mahindra Lifespaces is also eyeing at Tier II cities, where the ‘markets are fragmented and unorganised’ according to Arjundas. The developer is working on a residential project named ‘Bloomdale’ in the central Indian city of Nagpur. The project offers units from the 1BHK category, starting from ₹26.61 lakhs (₹2.66 million; Dh153,315), to row houses and duplex apartments. The developer’s luxury projects include ‘Luminare’, a project in Gurgaon that is spread over 7 acres. The 3 towers of G+30 storeys comprises 300 units, with average prices being around ₹5 crores (₹50 million; Dh2.88 million). Mahindra Lifespaces has also pioneered the concept of integrated business cities through its ‘Mahindra World City’ developments in Chen-
INDIACORNER nai and Jaipur. These developments have a combined area of 4,450 acres and house about 135 global companies. “We were among the first in the country to build large mixed-use projects. We have created jobs and infrastructure, had companies setting up bases, built townships, schools and hospitals,” Neogi said.
sustainability
The management of Mahindra Lifespaces claims it is India’s first ‘Green Homes’ developer with one of the largest footprints of Indian Green Building Council (IGBC) pre-certified and certified green buildings, having started the ‘green homes’ drive in 2007. The company claims, ‘it is the first real estate company in India to release its triplebottom line focused Sustainability Report that is based on the Global Reporting Initiative (GRI) framework with an A+ assessment, indicating the highest levels of transparency and disclosure’. It has also been recognized in 2014 as a Regional Sector Leader in its category in Asia, by the Global Real Estate Sustainability Benchmark (GRESB). “We had the third largest footprint of green buildings in the country in 2012, with 16.5 million square feet. Last year (2014), we got a green certificate for delivering around 19.5 million square feet of green buildings,” Arjundas said. “We consider sustainable development as an important aspect of our projects, and this differentiates our projects. We do not find it fashionable to just say that we are green developers, but we actually do it.” g Gulf Property
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Puravankara in 9m sq ft affordable housing
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By Indrajit Sen Senior Reporter
angalore-based developer Puravankara Group has started developing affordable homes to cater to the growing needs of budget housing in India, especially the southern part of India. Over the past decade or so, the South Indian property sector has almost come out of wilderness to develop into a heavy-trading market. The spiralling growth of the re-
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gion’s real estate market can be attributed to the high demand for housing fuelled by a massive migrant workforce, which largely comprises skilled professionals flocking for work in India’s booming IT (Information and Technology) industry. Moreover, cities such as Bangalore, and the regional metropolitans like Chennai, Hyderabad and Kochi are markets that are driven by end-users and are hence stable. In a market as South India, which is devoid of speculation, developers such as Bangalore-based Pura-
vankara Group have much to gain from. While on one hand there is healthy demand for luxury properties from the rising number of high networth individuals (HNWIs) and the high-income group, southern India’s need for affordable housing surges with a strong and expanding middle-income segment. Puravankara, realising this crucial need for budget housing, has dedicated an entire unit for developing properties that cater to the mid and lowincome groups. The enterprise, formed in 1975, has thus far delivered about 50
residential projects spanning close to 24 million square feet. The developer has ambitious expansion plans, as it has decided to develop around 82 million square feet within a decade, and has plans of re-entering the Mumbai market with a mega residential project. Ashish Puravankara, Joint Managing Director of Puravankara Group, tells Gulf Property in an interview about the developer’s ongoing projects, tie-ups with various Indian banks and the marketing strategy to reach out to NRI investors in the GCC. Excerpts:
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Gulf Property: Please give me a brief background and overview of your company. How big is the workforce? Ashish Puravankara: Puravankara commenced its operations in Mumbai and has an increasing presence in Bangalore, Kochi, Chennai, Coimbatore, Hyderabad, Mangalore, Mumbai, Pune, Mysore and overseas in the United Arab Emirates, Saudi Arabia and Sri Lanka. The company has successfully completed 48 residential and 2 commercial projects spanning 23.54 million square feet. As of December 31, 2014,
Puravankara has 24.87 million square feet of projects under development, with an additional 81.83 million square feet in projected development over the next 7 to 10 years. The group prides itself on continual innovation to meet the evolving market needs. Provident Housing Ltd, a wholly-owned subsidiary was established in 2008, to cater to the increasing demand in the premium affordable housing segment. Over 13.93 million square feet of projects have been launched across Bangalore, Coimbatore, Chennai and Mangalore,
of which 4.55 million square feet has been completed and delivered. Additionally 9.38 million square feet is planned for new launches in the coming quarters. Our workforce of about 1,300, including supporting and technical staff, fuel the organisation’s vision of delivering quality products to its consumers. Puravankara has delivered multiple residential projects across Southern Indian cities like Bangalore, Chennai, Kochi and Coimbatore. Could you briefly talk about these ‘ready-to-
move-in’ projects? We currently have ongoing residential projects in the key micro-markets of Bangalore, Chennai, Coimbatore, Kochi, Mangalore, Hyderabad and Pune. Our ‘ready-to-move-in’ homes have brought a paradigm shift in real estate as it eliminates the gap between the dream of a home buyer and its fulfilment. Prospective buyers can visit the site, inspect an apartment and book that very same apartment. As of March 31, 2014 we had 2 million square feet of completed inventory for immediate sale. Puravankara is presently constructing almost three dozen projects in South India and also one in Pune. As a developer, how do you manage to work on so many projects simultaneously? Puravankara has been in business for the past 4 decades and has a strong inhouse execution capability, together with established relationships with leading contractors in the country focusing on quality, internal processes and systems. We have managed to achieve economies of scale and accelerate execution, by Gulf Property
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researching and adopting the latest innovative technologies.
Puravankara’s projects are all sponsored by Standard Chartered Bank. What are your other sources of finance? Are there other banks sponsoring your projects? Do you have equity partners? We have banking relations with both public and private sector Banks including ICICI Bank Ltd, Standard Chartered Bank, Andhra Bank, Dhanlaxmi Bank, State Bank of Mysore, State Bank of Hyderabad, State Bank of Bikaner and Jaipur, South Indian Bank, Karur Vysya Bank, and also with housing finance companies, including HDFC Ltd.
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We have raised debt capital at the project and the entity levels, but currently we do not have any equity raised at the project level. We regularly evaluate relationships with other banks to optimise value creation for our stakeholders.
What is the total combined value of development currently under construction now? The company is currently executing various Projects totalling to a developable area of 24.87 million square feet.
How many residential units are you delivering with these 32 under-construction projects? What will be the average area of each type of unit?
Our under construction projects spans across various location/cities in all totalling to 17,895 homes with an average of 1,500 to 1,700 square feet under the Puravankara brand, and an average size of 1,000 square feet under the Provident brand. What is the status of construction of your ongoing projects and when do you expect to deliver them to the buyers? Our projects are under various stages of construction, and we are expecting to complete the same within the next 4 years. If our estimates are correct, the price for a 2 bedroom apartment in any of Puravankara’s projects start at Rs70 million. This
seems like quite a low price for a 2 bedroom apartment in India, especially when in the other metros like Delhi and Mumbai the minimum prices for the same are over a crore. What is the reason behind this attractive pricing structure? The Bangalore markets are different from Mumbai and Delhi, as there is still potential for growth in Bangalore with good product supply and land being available. The continued demand, stable economic growth and suitable climate makes Bangalore very attractive. The demographic locations, migratory population and an excellent socio-cultural background are also contributing factors.
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Adani seeks NRI funds for $2.36bn Gujarat project
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Ashish Puravankara, Joint Managing Director of Puravankara Group
What is your marketing strategy in the Gulf? How has been the response so far for Puravankara’ s projects, both back home in India and here in Dubai? Close to 25 per cent of the sales of Tier 1 developers in India such as Puravankara, are contributed by NRIs. Close to one-third of such sales is believed to originate from the Middle East/GCC region. Currently Puravankara has representative offices in the UAE and Saudi Arabia and conducts regular promotional events such as road shows in this region to reach out to NRI customers. Real estate agents are also an integral part our marketing efforts. In addition to all the traditional marketing methods, NRIs seem to have a specific affinity to researching and transacting online. Our website has extensive information about all our projects, and is made very interactive for customers to transact/purchase homes online. g
n Indian developer based in the western state of Gujarat says it is hoping to cement its status as a leading national realtor with its flagship project in Ahmedabad, one of the country’s largest mixed-use townships. ‘Shantigram’ – a project worth ₹150 billion (Dh8.66 billion; $2.36 billion) of development value – is sprawled over 616 acres and consists of residential, commercial and lifestyle offerings, a senior official from developer Adani Realty said. “We are currently not looking at any other cities in India. May be in the future there will be plans for expansion. We want to focus on our project in Ahmedabad now,” Bhavan Trivedi, Assistant Manager – Marketing, Adani Realty, told Gulf Property. Although Adani Realty does have a few high-end projects in Mumbai and one in Gurgaon, the developer was mostly seen showcasing its Shantigram projects to NRI investors at the Indian Property Show in June. The GCC market accounts between 10 and 15 per cent of Adani’s total international sales, and it has been receiving ‘good investments’ from the region over the last nine years of its existence. “Everybody is ready to pay. We have adequate amount of investments coming in,” Trivedi said. “For example, if I am offering a planned infrastructure and facilities like car park, open spaces, parks, pools, clubhouses and golf courses, people are ready to pay for
that,” he said in reference to ‘Shantigram’. Adani Realty is the newest addition to the Adani Group, one of India's largest business enterprises, worth $9.4 billion (in 2014). The conglomerate has ventures in multiple sectors including ports, Special Economic Zones (SEZs), power generation, oil & gas and coal mining and trading and employs an estimated 10,400 staff. However, for a project the magnitude of Shantigram, Adani Realty is depending partly on bank sponsorships, besides in-house funding, Trivedi revealed. As like any other developer, Adani has tie-ups with Indian banks, including HDFC and ICICI, for providing mortgage solutions to its customers. The developer is delivering a number of residential projects within the Shantigram master development. ‘North Park’ is a golf coursethemed villa project that comprises villas in the 4, 5 and 6 bedroom categories. Prices start at ₹35 million (Dh2.02 million; $551,124) and can go up to ₹110 million (Dh6.36 million; $1.73 million). The lakeside ‘Waterlily’ is another luxury project within Shantigram that consists of 3 and a half and 4 bedroom penthouses, with
prices starting at ₹30 million (Dh1.73 million; $472,322). Within the budget ticket size segment, Shantigram offers the ‘Meadows’ – a 27 acres project – that offers 2, 2 and a half and 3BHK apartments. Other similar residential projects are the ‘Elysium’, offering 2, 2 and a half and 3BHK apartments, and ‘Aangan’, consisting of 1 and 2BHK apartments. Adani Realty has also launched the second phase of its flagship affordable housing project named ‘Pratham’ in Ahmedabad, after the developer sold out the 290 apartments it launched in Phase 1. The 1 and 2BHK units in Pratham start from as low as ₹2.2 million (Dh127,171; $34,630). Shantigram’s ‘CBD’ project is a commercial precinct that will offer retail, office and entertainment spaces, besides hosting Adani Group’s own corporate headquarters. Trivedi mentioned that Shantigram being the focus, the developer plans to deliver 2500 units of the project in 2015. “We will only be delivering the Mumbai and Gurgaon project in 2017,” he said. g
– Indrajit Sen Senior Reporter
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Kalpataru unveils 12 projects for NRIs
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By Jipsa George Staff Reporter
alpataru, one of the largest developers in the Western India recently unveiled 12 new projects for Non-Resident Indians (NRI’s) and GCC in Dubai. The company showcased these projects at the Indian Property Show that was held at the Dubai World Trade Centre from June 11-13, 2015. The Mumbai based developer has delivered over 95
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projects across India till date, primarily in Mumbai and Pune with an annual turnover of $400 million (Dh1.46 billion) last year. At present, the group is also commencing projects in other cities like Jaipur, Surat, Hyderabad and Chennai. “The Indian market is growing and I believe this is a good time for both investors as well as end-users to buy property” said a spokesperson for Kalpataru in an interview with Gulf Property. Set up in 1969, by Mofatraj P. Munot. Kalpataru Limited, the flagship real estate company of the Kalpataru Group
of companies, is now among the leading developers in India with over 45 years of realty experience and development. “What had started as a vision to be a brand that is admired as an industry leader is now a reality with Kalpataru Limited. Today, we are recognised for various landmarks across the length and breadth of Mumbai,” says, Munot, the chairman and founder of Kalpataru on the website. “Over the last four decades, Kalpataru Limited has developed a strong foothold across Mumbai Met-
ropolitan Region and Pune and is well-known for its thoughtfully designed and high quality innovative life spaces.” The company was also one of the largest Civil Contracting firms in the Middle East between the years 1974 and 1982, completing successful projects which include residential properties, commercial, religious institutions and various other projects. Apart from constructions, Kalpataru has fostered futuristic infrastructures, developing more than 80 projects till date.
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Dhruthi starts affordable homes
ndian Developer Dhruthi Infra is set to start new projects with affordable homes in Bangalore and Andhra Pradesh which provides a good opportunity for middleincome Indian wage earners living in the Gulf, a top official told Gulf Property at a real estate exhibition last month. Dhruthi Infra Projects, the new Bangalore based developer recently revealed its plans to start new projects in Kuntu, Andhra Pradesh and Bangalore, offering affordable homes for residents and NRI’s. The plan was unveiled by the Chairman and the Managing Director of Dhruthi Infra Projects, K. Krishna Kanth. The group’s first venture and ongoing project, Tranquil Towers come with over 270 apartments located in Whitefield in Bangalore, positioned among the best developed IT hubs in India. The developer told Gulf Property, prices of 1,150 The group has interests in power, infrastructure, logistics and real estate – both in terms of property design, development, construction, facilities management and asset management services. The Kalpataru Power Transmission Ltd. is equally a Turnkey Player in power supply across India and overseas, including countries such as Africa, The Middles East, Australia, Far East, USA and Canada. The firm's central focus is on the development of premium residential, commercial, retail and integrated township development proj-
square feet 2 BHK apartment, start from as low as from Dh267,794 while threebedroom hall apartment in a 1,870 square feet design, prices start from Dh433,782. “With the Indian market subdued, now is a good time for buyers and investors to buy in India.” said K. Krishna Kanth. According to the latest reports by global real estate advisory Jones Lang LaSalle India (JLL), the new initiatives by the Government on the Banking for All/ Financial Inclusion schemes and the development of 100 smart cities to provide employment opportunities for a large number of residents, it is expected to drive demand in the realty market this year. With Prime Minister Narendra Modi Government set to deliver major milestones, property experts and analysts say buyers and investors will benefit from the investment they do now. “I advise Non-resident Indians to invest in residential projects that have good potential for capital appreciation and not be too concerned about immediate rental value,” said Ashwin ects including road projects, warehousing and logistics. Kalpataru’s ready to movein projects include Kalpataru Sparkle and the Y- shaped tower, Kalpataru Pinnacle, located in Goregaon, near Mumbai. The starting price for a 2 BHK has been pegged at Rs3.8 million. The company’s on-going projects include Shristi Residential in Meera Road. The group also has a 38 million square feet future development at hand. As an innovative organisation, Kalpataru has also been recognised for its achievements in the year 2014, win-
Balasubramanian, Director of Buildmann Group in Bangalore. “This is because rental yields in residential areas are low, but capital appreciation in the right locations and projects can more than compensate for any devaluation that may occur in the rupee. Moreover, residential assets are less risky and much more liquid assets than commercial assets,” According to the India Brand Equity Foundation, the market size of real estate in India is expected to increase at a Compounded Annual Growth Rate (CAGR) of 11.2 per cent till 2020. With demand to grow at a CAGR of 2 per cent over the period 2013-17 across the top 8 cities in India include Ahmedabad, Pune, Bangalore, NCR, Mumbai, Hyderabad, Kolkata and Chennai. “Mumbai and Bangalore are expected to lead in the recovery of sales volume with a growth of 49 per cent and 26P per cent respectively during this period,” according to Gautum Paul, CEO of Zemooz Inc. g
– Jipsa George Staff Reporter
ning a handful of awards such as Residential Property of the Year, India’s Top Innovisionary Builders, Scroll of Honour and Retail Excellence- Retailer of the Year. Some of the group’s best innovations include Kalpataru Square at Andheri becoming Asia’s 1st and the world’s 6th building to get Platinum Level Certification LEED – Core and Shell by US Green Building Council. Also, it is the first to create E3 Homes that provide a smaller size room besides the two regular sized bedrooms, that can be used as a study room or for prayer. g
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Tasweek eyes India’s smart cities project
ubai-based real estate consultant and solutions provider Tasweek Real Estate Development and Marketing, said, it is exploring the possibility of engaging in ‘smart city’ projects in India in collaboration with local partner MAMS Holdings Group. India is preparing to develop100 smart cities to modernise mid-sized cities and act as satellite towns of larger metropolitan areas. India’s 2015 federal budget includes provisions for ‘smart practices and smart living,’ with $1 billion allocated for the Urban Rejuvenation Mission and $84 million earmarked for the habitation and development of 100 smart cities. Tasweek and MAMS Holdings have visited Akhilesh Yadav, Chief Minister of Uttar Pradesh, to discuss various investment opportunities related to ‘smart city’ and urban development in this regard. The Chief Minister is keen on providing affordable smart housing solutions and developing 200,000 low-cost homes in his state in the coming years. Under the terms of their agreement, the partners will seek residential, commercial and mixed-use projects enabled with ‘smart’ technologies in India. They will also focus on investment opportunities in affordable housing. g Gulf Property
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By Indrajit Sen Senior Reporter n a rare move, Mumbaibased developer JP Infra has released its newest project – Altus – in Dubai, almost a month ahead of its launch in India. JP Infra is jointly developing Altus – an off-plan project located in the upscale Worli area of Mumbai – with Ahuja Constructions, another Mumbai-based company, Gulf Property can reveal. Altus – having an estimated development value of over ₹6 billion (Dh346.60 million) comprises a single tower of 44 floors and offers just 64 luxurious apartments, Manoj Asrani, Head-Marketing exclusively told Gulf Property in an interview. “We wanted to deliver residents an urban lifestyle through this project, and hence we have just about two apartments on each floor,” he said. Altus would comprise of only 3BHK apartments of 2,750 square feet – ‘offering 270° views of the Arabian sea and the metropolitan Mumbai skyline’ – with prices starting at ₹110 million (Dh346.60 million; $94.35 million), Asrani said. JP Infra intends to start construction of the project by August and complete it within 2 years. “Mumbai’s notorious monsoon season (which effectively starts in mid-June and goes on till August-end) can however cause a delay to our groundbreaking plans,” Asrani pointed out.
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JP Infra unveils project for NRIs Hong Kong-based P&T Group is the architect of the Altus project. The developers have also been considering a number of national and regional construction companies to build the project. Contractors including Dubai-based Al Fara’a General Contracting Co. (owned by NRI industrialist Dr. J R Gangaramani), Gammon India and Larsen and Toubro (L&T) India, are in the run to bag the construction contract. “We will take our time to finalise the contractor as we do not want to give the contract to any firm, but only to a reputed company who has a track record of delivering good projects. That is a decision that Vijay Jain, Chairman and Managing Director of JP Infra and Gautam Ahuja Managing Director of Ahuja Constructions will have to take,” Asrani told Gulf Property. The project boasts of a host of amenities including an ‘environmental deck’ and juice bar on the roof-top and a spa facility to be operated by French beauty products retailer L’Occitane. JP Infra is banking on Worli, the posh location of Altus, for the success of the project. According to reports, properties in the Worli micromarket of Mumbai have been witnessing a 17 per cent year-on-year capital appreciation, and in 2014 alone it recorded 22 per cent. According to various Indian realtors, NRIs based in
the GCC have over the years shown profound interest in a new project rather than an existing property. JP Infra has apparently sought to capture this increased interest and thereby attract investments by for this off-plan project by launching it in Dubai prior to the home market. Senior company officials say the response has been ‘phenomenal and unprecedented’ for the realtor. “We have already closed two deals with end-users in Dubai (less than a week within launch), who have bought an apartment each in Altus,” Asrani revealed. Although the developer has not formally begun the sales campaign in India, it has informed local brokers and sales agents about Altus. Asrani claims that about 300 of them have shown interest in the project. “We take (develop) 1 square feet at a time,” Jain quipped at the Dubai sales event. JP Infra is presently developing over 8 million square feet of projects, mostly residential. Within its Mumbai portfolio, it has another project in Worli named ‘Unity Towers’. The two-tower project comprises 2 and 3BHK sea-view apartments, with prices starting at ₹20 million (Dh1.15 million; $314,640). JP Infra is also claiming to develop the tallest tower in Juhu, another upmarket neighbourhood of Mumbai, home to a number of Bolly-
wood personalities. The high-end project – which offers features such as a rooftop infinity swimming pool and 3 levels of basement parking – comprises 3, 4 and 6BHK apartments, with prices starting at ₹47 million (Dh2.71 million; $739,396). Built by Al Fara’a Group, ‘JP Decks’ is another Mumbai project that the developer is selling to NRIs in Dubai. Located in the Goregaon East neighbourhood of Mumbai, the project comprises a single tower, split into two wings and offers apartments from the 2 to 5BHK categories. Designed by famed Indian architect Reza Kabul, the project boasts of a unique design of offering sizeable decks across apartments at all levels and a gym on the 9th floor. “The response for JP Decks has been particularly good in Dubai and we have sold some units here,” Asrani stated. Among the affordable properties JP Infra is developing is ‘JP North’. The project – spread over 24 acres derives its name from the northern Mumbai suburb of Mira Road. Designed by Reza Kabul, the project will comprise 1, 2, 3 and 4BHK apartments. JP Infra says the apartment prices, within a range of ₹4 million to ₹7.2 million (Dh231,115 – Dh416,000; $62,927 – 113,268), are 30 per cent lower than other projects in the vicinity.
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INDIACORNER Asrani claims that the ‘JP North’ project has been ‘well received’ by the Dubai NRI market, with JP Infra selling 190 of the total 276 apartments here. The project, he says, benefits from a number or factors; first being its proximity to the 5-lane Western Express Highway that connects Mumbai to the western state of Gujarat. Besides, Mira Road as a micro-market, has seen healthy capital appreciation over the years. The developer is also guaranteeing a Return on
Investment (ROI) of 50 per cent for this project. JP Infra has developed over 32 million square feet of residential, commercial, retail and Slum Rehabilitation Agenda (SRA), since it was formed in 2007. Although the developer’s projects are mostly in Mumbai, it has also developed projects in the cities of Jaipur, Indore and Rajkot. The realtor has on board real estate services firm Jones Lang LaSalle (JLL) India for obtaining market advice. g
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Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister of the UAE and Minister of Presidential Affairs, flanked by Obaid Humaid Al Tayer, State Minister for Finance, interacts with young Emiratis looking for housing and business funding, during the inauguration of the Emirates Development Bank
EDB to fund 30,000 affordable homes
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Gulf Property Exclusive
mirates Development Bank, which was launched last month with Dh10 billion authorised capital, is set to spearhead the development of affordable homes with a committment to deliver 30,000 homes for the UAE citizens between 2015 to 2021. “Housing is a strategically important area for Emirates Development Bank (EDB), and helping Emiratis to own
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their first home, either directly or in partnership with government housing programmes, is a key objective for the bank. EDB will provide affordable housing finance, high-quality, affordable homes, to around 30,000 UAE citizens between 2015-2021,” the company said in a statement. Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs of the UAE, has recently launched EDB’s operations in the UAE. EDB has an authorised capital of Dh10 billion and the source of Dh5 billion to
help in financing developmental, residential and industrial projects for citizens. The bank will also allocate Dh500 million towards a credit guarantee scheme with other banks to be available for Emirati SMEs and the owners of small businesses, in addition to Dh300 million for SMEs. Established in 2011 under a decree issued by the President of the UAE, HisHighness Sheikh Khalifa bin Zayed Al Nahyan, EDB’s vision is to help build a national economy characterized by diversity that is based on innovation
and allows citizens’ access to suitable accommodation by providing finance at affordable economic cost. The bank also provides support, finance and innovative banking solutions to achieve sustainable development of small and medium sized companies – the engine room of the UAE economy. EDB is the result of a merger between Emirates Industrial Bank and the Real Estate Bank that was planned around 2009-10, following the global financial crisis that badly affected the country’s real estate market. At that time, two mortgage
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At A Glance
Dh10 billion
NEWSUPDATE
authorised capital of Emirates Development Bank
Dh5 billion
to be sourced by EDB to fund emirati housing
Dh500 m
to be allocated by EDB as credit guarantee scheme
Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister of the UAE and Minister of Presidential Affairs, inaugurates the headquarters of Emirates Development Bank
lenders – Amlak Finance and Tamweel – were also part of the mega merger plan to create a major industrial and real estate lender. According to the plan, both the mortgage lenders were first delisted from the stock market and prepared for the merger. However, later Amlak and Tamweel demerged from the plan to reestablish themselves as separate entities. Amlak re-listed its shares on the Dubai Financial Market following the approval of a new business plan by its board. Sheikh Mansour Bin Zayed said that the establishment of Emirates Development Bank is a result of the wise vision and direction of the UAE leadership headed by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, as well as decisions taken by the cabinet of the UAE, headed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, in terms of the government’s strategy that led to
Dh300 m
finding to be disbursed by Emirates Development Bank for the SME sector
the merger of Emirates Industrial Bank and Real Estate Bank into one entity. Sheikh Mansour said he believes that it is a key addition to the banking sector in the UAE that will boost overall growth of the economy and provide Emirati people with services that help them achieve key milestones in their lives, such as owning their own homes, in addition to supporting Emirati entrepreneurs and the SME sector. The bank will provide lending services to local Emirati people in its drive to support the housing sector in the UAE. This ambition is in-line with the vision of Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, to improve the quality of living for UAE citizens. In addition, EDB will support the UAE’s growing businesses, the development of the local infrastructure and financing key strategic sectors in the UAE’s thriving economy. Khaled Mohammed Salem Balama, Chairman of Emirates Development Bank, commented: “Emirates Development Bank will play a
vital role in furthering the economic growth of the UAE and improving the opportunities and life choices for its citizens. EDB is proud to be entrusted with such a laudable and important task. The expertise of our leadership and talent of our employees will ensure that we can deliver on this. We thank His Highness Sheikh Mansour for gracing us with his presence at yesterday’s launch event. “EDB has the ability to help shape our nation’s future, empowering Emiratis who aspire to take possession of their own home while also supporting key areas of the economy, particularly the innovative and entrepreneurial Small and Medium Enterprise (SME) sector. We are eternally grateful for the forward-looking vision and wisdom of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of UAE, who has enabled the establishment of EDB and who continues to inspire our nation’s growth and economic development.” EDB will offer a number of products to UAE citizens including supplementary
loans, home purchase and construction loans. Products for local businesses will include an SME business loan, credit guarantee scheme, business account and strategic sector finance for qualifying clients. Rashid Mahboob, Acting CEO of Emirates Development Bank, added: “The launch of EDB’s operations will provide impetus to the development of our nation, our economy and our community. We are proud to be pioneering positive change in the UAE, partnering with the government to ensure the long-term success of our great nation.” In addition, EDB is facilitating the shift towards a modern diversified and knowledge-based economy by providing a complete range of specialist SME products. EDB is also building strategic partnerships with local and federal authorities to encourage citizens to start businesses; one example being the support of Emirati innovators through the Takamul programme. Through this approach, the bank aims to create a diversified economy which is sustainable and can deliver long-term prosperity for the UAE. EDB will also partner with the government on strategic development projects, many of which are expected to have national importance for the future of the UAE. Healthcare, manufacturing, ICT and construction are all key areas of the UAE economy in which EDB can contribute by providing integral financing. g Gulf Property
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SPOTLIGHT
wasl launches Ramadan activities, health initiatives for customers
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asl properties has launched its annual Ramadan competition for its tenants in Dubai. The winners, selected by a public jury, will be receiving prizes for showing their artistic flair. wasl's contest for kids is its Ramadan Painting Competition, which is now in its fifth year. Under the terms of the activity, wasl tenants of up to 13 years of age are encouraged to paint and draw what they see around them, uploading their entries. At the end of the holy month, one winner out of the four selected over the course of the competition will be awarded a tuition scholarship to use towards their school fees. wasl’s contest for its adult tenants is the Ramadan Instagram Photography Competition, with tenants over the age of 13 years invited to capture their interpretation of the true meaning of the holy month. Each entrant can upload an unlimited number of photos, with the best as judged by members of the public receiving a prize. wasl Asset Management Group has also joined charitable institution Beit Al Khair to distribute daily iftar meals at its properties Muhaisnah, Ras al khor and Al Quoz. wasl seeks to provide daily iftar meals to around 200 tenants in Muhaisnah, around 150 tenants at its Samari Residences in Ras al Khor and about 1200 workers located in Al Quoz, with construction personnel benefitting from the free food on
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offer each Friday throughout the holy month. Separately, wasl Properties said it has entered into a partnership with the Aster Medical Group, to offer free medical tests and lifestyle advice for wasl families in two locations of Dubai. Tenants and their families attending the health checkup events had their heart rate and blood pressure checked, as well as their Body Mass Index (BMI) determined through weight and height measurements. They also had their blood sugar levels assessed. Earlier on June 14, employees of wasl Asset Management Group donated blood to the Dubai Blood Donation Centre on the occasion of World Blood Donor Day. wasl transported its employees, as well as customers who were in its office at the time, to the centre, which is a subsidiary of the Dubai Health Authority. g
wasl wins award from IT giant SAP for being ‘smart’
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asl Asset Management Group was declared a ‘Gold Winner’ at the SAP Quality Awards for Europe, Middle East and Africa (EMEA), scooping the title for its Mobility Services. wasl picked up its SAP Quality Award in recognition of its role in offering innovative products and services to customers, with the scheme’s Gold Win-
ners selected from over 200 organisations from across the EMEA region. This year’s Gold Award for Mobility Innovation recognised wasl’s mobility and online initiatives across the organisation’s various functions. wasl offers over 60 main transactions and about 250 services through its online and mobility platforms, for its customers and staff. g
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SPOTLIGHT
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HMG Properties gets ISO 9001 branding MG Properties has been awarded the ISO 9001 certification, the world's most recognised quality management standard. Raed Bourjass, CEO of HMG Properties, pointed out that this award would assure HMG’s clients and partners that the company is committed to management of its resources and consistent improvement of its services. HMG Properties has been expanding its portfolio at a fast pace by continually rolling out properties in the UK, United States, Spain, and recently in Dubai and Lebanon. It is also the first group in the Middle East to offer fully managed and prerented villas and apartments in the US and Europe. g
Emaar Retail, Yas Mall win awards
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AE-based Emaar Retail and Aldar Properties’ owned Yas Mall have won awards at the Global RLI Awards 2015, hosted by the global retail and leisure
magazine Retail & Leisure International (RLI) at Meydan Gallery, Dubai. Emaar Retail has won international recognition as the ‘RLI Global Leisure Operator 2015’ at the 10th Global RLI Awards.
Yas Mall won the ‘Best International Shopping Centre’ award. The Abu Dhabi-located mall says it was judged on its customer care; diverse offering in fashion, F&B and entertainment; mall layout
and ease of navigation; maintenance and cleanliness. The UAE’s newest retail destination beat other malls in the country and internationally in China and Turkey to bag the award. g Gulf Property
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SPOTLIGHT
AHG, Slovakia discuss business
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halaf Ahmad Al Habtoor, Chairman of the Al Habtoor Group met Slovakian President Andrej Kiska in the central European country last month to discuss business opportunities. Kiska, who had invited Al Habtoor, asked him to consider recruiting Slovak nationals within the Al Habtoor Group of companies. Al Habtoor Group is currently on an expansion phase – particularly in the hospitality sector in Dubai. Al Habtoor hosted Kiska at his hotel in the president’s hometown of Poprad-Tatry, a ski resort town located some 300 kilometres from the Slovak capital Bratislava. g
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Damac opens ‘Morjana’ first sales office for ladies
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amac Properties has opened a ‘ladies only’ sales office, after registering increased interest for its projects from women customers. ‘Morjana’
is set inside the Damac Maison in Downtown Dubai. The office has over 25 female staff, all fluent in Arabic, and is open all seven days a week from 10am to 7pm. Damac Properties has buy-
ers from over 120 countries, with the majority originating from the GCC, India, Pakistan and the United Kingdom. The ladies-only office is part of the developer’s latest programmes. g
Dubai Municipality awards Almoosa alem Almoosa, Chairman and General Manager, Falconcity of Wonders, was recently awarded by the Dubai Municipality for his efforts in supporting the civic authority’s bid to honour strategic partners and management personnel. The award was handed on to Almoosa, who grew up in the Shindagah area of old Dubai, for using his reminiscences to identify and recreate the old Dubai map. His efforts proved useful in identifying homes, native heritage and to preserve local culture. g
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Cayan Group among regional ‘Forbes Top Companies 2015’
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eal estate developer Cayan Group has been recently recognised as one of the ‘Forbes Top Companies in the Arab World 2015’ by Forbes Middle East magazine. Among
the awardees at the event were Cayan Group and its Chairman, Ahmed Al Hatti, who was awarded for his achievements and contributions towards real estate. Forbes Middle East hosted the ‘Top Companies in the
Arab World for the year 2015’ at the Oberoi hotel in Dubai on June 9. The event included an awards ceremony that honoured Arab companies that are attaining different levels of success g
The company says it has set ‘ambitious goals for 2018 to deliver results across three key areas – developing and managing high perform-
ance assets that support prosperous communities and in doing so deliver pioneering standards across its business’. g
Majid Al Futtaim recognised for efforts towards sustainability
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ubai-based retail establishment Majid Al Futtaim has been recognised by the Arab Organisation for Social Responsibility for helping Dubai along its path to become one of the top ten sustainable cities by 2020. The Arab Organisation for Social Responsibility nominated Majid Al Futtaim for implementing its five-year ‘Sustainability and Green Building Policies’. The company was presented with a Golden Excellence Shield Award on June 9.
SPOTLIGHT
Manazel appoints Chief Investment & Commercial Officer
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anazel Real Estate, the Abu Dhabibased real estate developer, has announced that it has appointed Waleid Gamal Eldien as its Chief Investment & Commercial Officer for its C suite management team. The company continues to invest in its management and business infrastructure as it diversifies into sectors such as healthcare and hospitality. Eldien has significant financial services and real estate experience having held senior management positions in investment, banking and real estate firms across the region. Over the last 11 years, he has worked in the UAE, specifically within the capital market and private equity investment space, and has been involved in debt restructures, private placements, M&A transactions and capital raisings. Eldien holds a Master of Science degree in Financial Engineering & Quantitative Analysis from the United Kingdom. g Gulf Property
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SPOTLIGHT Millennium Plaza Hotel Dubai appoints new Director of Sales & Marketing
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illennium Plaza Hotel Dubai has told the media that it has appointed Greg D’Souza as the new Director of Sales & Marketing. D’Souza will oversee the sales and revenue generation for Millennium Plaza Hotel, which is located along Sheikh Zayed Road. D’Souza, an Indian national has 15 years of experience in the hospitality field and has served in management positions at popular hospitality brands, including Rotana, The Ritz Carlton Doha, Qatar, Sheraton Krabi Beach Resort in Thailand and Director E-commerce and Intermediaries MEA at Marriott International, Inc. Middle East Africa and Subcontinent. He is a recipient of the ‘Director of Sales of the Year’ Merit Award for six years. g
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DIP plants over 10,000 trees to mark ‘Environment Day’
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ubai Investments Park [DIP], the integrated commercial, industrial and residential master development near Jebel Ali in Dubai, planted over 10,000 trees and shrubs to mark World Environment Day on June 5. The institution told the media that the plantation drive, which was DIP’s ‘environmental responsibility’, focussed on two roads – A4 and B2 in DIP-1. The plantation includes Delonix Regia, Conocarpus, Azadirachta Indica and Neem trees, as also Bougainvillea, Clerodendron & Vitex shrubs, which will absorb hundreds of tonnes of carbon dioxide from atmos-
phere annually, making DIP a greener and better place to live. The first sapling was planted by Omar Al Mesmar, General Manager of DIP, at a special ceremony onsite.
Over the last 10 years, DIP has recycled over 51 million cubic metres of waste water and reduced over 1.25 million tonnes of carbon dioxide through its energy-efficient sustainable programme. g
Tilal Liwa Hotel gets award from travel site TripAdvisor
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ilal Liwa Hotel has announced that it has received a ‘Certificate of Excellence’ award from popular travel website TripAdvisor. Certificate of Excellence winners include accommodations, eateries and attractions located all over the world that have continually delivered a superior customer experience. A statement from the Tilal Liwa hotel reads ‘Now in its fifth year, the award celebrates excellence in hospitality and is given only to establishments that consistently achieve great reviews on TripAdvisor’. g
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* 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.
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