Gulf Property
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Faris Saeed Diamond Developers
India needs $2 trillion to provide housing for all by 2022
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EXCLUSIVE INTERVIEW Faris Saeed, Diamond Developers Sultan Al Ali, Masdar Sameh Muhtadi, Bloom Properties Sunil Jaiswal, Sumansa Exhibitions Rahul Nahar, Xrbia
Sustainable Cities Diamond Developers to build more
wasl vita residences are now leasing. Residences for those who seek superior living in the heart of Jumeira.
With a total of 64 apartments and a shopping plaza on the ground level, wasl vita expertly fuses an urban lifestyle within classic, California inspired architecture. Its prominent location on Al Wasl Road connects you to many fantastic amenities and facilities – meaning you will be spoilt for choice mere minutes from your door. • 1-BR, 2-BR & 3-BR apartments with rooftop gardens • Amenities include swimming pool, separate male & female gym, kids’ play area and gated security • Carrefour market & boutique retail To lease, visit our on-site customer service centre, log on to waslvita.wasl.ae or call 800wasl (9275)
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EDITORIAL
Real estate market remains under pressure amid hopes of recovery
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Developers race against each other to offer best prices as affordable housing movement gains momentum ubai’s real estate market is coming of age as property developers have, instead of speculators, finally started to focus on the real customers – the middle income families – whose needs have been neglected by the developers due to their excessive focus on luxury and ultra luxury segments. Dubai’s middle income families have largely remained out of the emirate’s freehold property bandwagon since the sector’s roller-coaster journey since 2002. However, these long-neglected majority of the population have suddenly become the focus of the real estate development as a number of developers have shifted their attention to this important segment, for two simple reasons: First, the market for luxury homes have shrunk and there are not very many takers and secondly, the focus on the middle income group is a very natural shift. In fact, it was long overdue.
In an economy, the middle income group remains the largest consumer group. Failing to cater to this important segment is a mistake. Dubai’s developers had created a big hole in the market by not catering to them. Since the freehold property boom began in 2002, developers have been catering to the upper echelons of the society that failed to address the need of middle income housing. The new wave of developments by Danube, Nshama and Damac Properties are currently racing against time to fix this gap.
The good time for the middle class has returned to Dubai where apartments and townhouses have suddenly become more affordable than in recent past. Prices did not fall to this level even during the height of the global financial crisis that rocked the real estate market in 2008-09. Whichever way one looks at, this has suddenly become a buyer’s market. However, if mortgage lenders start to open up their purse more wisely, then a large number of end-users could buy freehold apartments and townhouses that might trigger a massive growth in the affordable segment of the market, as well as a reverse migration from Sharjah to Dubai.
Either way, Dubai’s real estate market is witnessing a major transformation as developers are responding to the market needs – rather than flood the market with luxury products where there are no takers. It’s affordable properties – that are going to dictate who survives in this competition. That’s what the market really needs now. 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
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CONTENTS
COVERSTORY
EXECUTIVEOPINION
Christian Lagarde/IMF Rob Jackson/RICS Abdallah Massaad/RAK Ceramics Essa Al Ghurair/Al Ghurair Mohanad Alwadiya/Harbor
COVERSTORY
ABUDHABI
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21 22 23
Abu Dhabi rents increase 50 Brookfield to build 500 homes in Masdar City 54 Bloom to start works on 40,000 homes in Iraq 56 Eagle Hills starts developing Serbia project 60 Ain Al Fayda to build Dh4 billion worth of homes for emiratis 64
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POWERPROJECT
Diamond Developers to build more Sustainable Cities 24
MEGAPROJECTS
Dubai to invest Dh60 billion in utility by 2020 34 MAG unveils Dh700m project 40 Dh10.5 billion Dubai Parks and Resorts project on track 42 Auris to open 15 hotels in 46
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INTERVIEW
NEWSUPDATE
Ravi Pillai makes a Dh5.5 billion foray in Dubai’s realty 66 Binghatti to invest Dh1 billion worth of properties 68 Danube dazzles with Dh400 million Glitz III 70
INDIACORNER
Good time to buy Indian property 72 India needs $2 trillion to build homes for all 76
REGULARFEATURES Realty Bytes Spotlight
GULF PROPERTY
LICENCE
EDITORIAL
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
The region’s premier monthly for lifestyle, real estate, construction and building materials
Editor T. Akhtar editor@panasian1.com
Senior Reporter/Sub-Editor Indrajit Sen i.sen@panasian1.com
PUBLISHER
T. Akhtar Pan Asian Media MFZ LLC
12 78
Licenced by RAK Media City, authorised by the National Media Council. Gulf Property is a publication of Pan Asian Media MFZ-LLC
CIRCULATION 20,000 copies
Gulf Property 11
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REALTYBYTES
Aldar Q1 2015 profit up by 36% to Dh620m
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ldar Properties PJSC reported a 36 per cent jump in net profits to Dh620 million in the first quarter of 2015 from Dh456 million in Q1 2014. The Abu Dhabi developer said the rise in profit was a result of the growth in recurring revenues and handover of high margin land plot sales. Revenues for the Q1 2015 were recorded as Dh1.38 billion compared to Dh1.71 billion in Q1 2014. The developer’s gross profit margin also increased from 20 per cent in Q1 2014 to 47 per cent in Q1 2015. In January, Aldar repaid Dh1 billion of loans. Cash position also improved to Dh5.2 billion in Q1 2015. g
Meraas and Alibaba form ICT company in Dubai
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eraas, a Dubaibased holding company, and Aliyun, Chinese e-commerce giant Alibaba Group’s cloud computing subsidiary, recently signed a deal to setup a new technology enterprise to offer system integration services to private companies and government institutions in the MENA. Headquartered in Dubai, the firm will specialise in application development, architecture, testing, validation, citizenship e-services and Big Data operations. g
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Dubai Properties ‘sells out’ Arabella townhouses in Mudon
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ubai Properties said it has ‘sold out’ its newly launched Arabella Townhouses in its flagship development Mudon community in Dubailand. The sales was conducted on a first-come first-serve basis at the Dubai-based developer’s Sales and Customer Care Centre in Ras Al Khor. In a statement, Dubai Properties said it would be releasing additional units of
the project for sale, ‘to cater to the strong investor interest’. The project offers various layouts for buyers and investors, including 3-bedroom (mid, end, semi-detached) and 4-bedroom (semi-detached) units. The average unit sizes will range from 1,984 to 2,603 square feet. The new development is located just over 10 minutes from the Mall of the Emirates on Umm Sequim
Road. Separately, Dubai Properties has also unveiled a new residential tower at Dubai Wharf, a multi-million dirham mixed-use project at the Dubai Creek. The tower is part of Dubai Wharf’s four-tower mid-rise development. It comprises over 200 units that include studios, 1, 2 and 3-bedroom apartments, with average unit sizes ranging from 646 square feet to 2045 square feet. g
Structural construction of Onyx over: ASGC
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l Shafar General Contracting Co. LLC (ASGC) said, it has successfully completed all structural works on ‘The Onyx’ development. ASGC was awarded the Dh405 million construction contract by Dubai-based developer Ishraqah. The Onyx, located near Emaar Business Park on Sheikh Zayed Road, is expected to be completed by Q4 2015. Apartments and offices at the 3-tower mixed-use Onyx are currently on sale. g
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JGE launches budget project AlAndalus
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umeirah Golf Estates recently launched AlAndalus – a new collection of mid-market, Mediterranean-inspired, Andalusian-style townhouses, apartments and a community centre. The project would consist 550 1, 2, 3 and 4-bedroom apartments and 75 2, 2 and 4-bedroom townhouses at prices starting from Dh597,000; along with retail,
Omniyat completes construction of Business Bay project
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ubai-based developer Omniyat has received the Building Completion Certificate for The Binary project, its third completed project in Business Bay. The project, which will add almost 500,000 square feet of commercial and retail
hospitality and F&B outlets. AlAndalus is encircled by Jumeirah Golf Estates’ landscaped architecture, with lakes and greenery. The apartments will provide large indoor-outdoor living spaces, golf course views, as well as shared amenities of swimming pools, tennis courts, gymnasium and childrens’ play areas and BBQ facilities. AlAndalus townhouses surround an urban piazza, tradispace to Dubai, is now ready for handover. Located opposite The Opus in Dubai’s Business Bay along the upcoming Dubai Creek development, the Binary boasts of views of the Burj Khalifa, the creek and the Meydan Hotel. The building consists of a 4storey lobby that offers access to sleek and well-illuminated public areas embellished with high quality gilding, as well as private alcoves and state-of-the-art offices. The 29-floor structure comprises two connected
tional Andalusian villages, and parks. The villas are to have large outdoor terraces, trellises, roof towers and modern interiors. Tying AlAndalus together, the crescent-shaped Community Centre consists of an indoor and outdoor retail area, gardens, and al fresco dining spots with a body of open water and floating restaurants. AlAndalus has access to a mosque. g 21-storey and 24-storey towers sitting above five podium levels, offering unique amenities including 15 ground floor retail shops and three basement levels with 1,218 parking bays. The double-tower structure is conveniently serviced by seven elevators, a concierge, prayer rooms and washroom facilities in the main foyer. The Binary’s handover pegs the value of Omniyat’s ready projects at over Dh3 billion, with an additional Dh9 billion worth of projects under development. g
REALTYBYTES
AA Real Estate selling Palm Jumeirah villas
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A Real Estate Development recently announced the sales launch of ‘M. State by Ocean Breeze’, a collection of five villas located on frond M of the Palm Jumeirah, Dubai. The villas in M.State are of 5 or 6 bedrooms, set over three floors and each approximately 1,250 square metres in size. Each of the villas have been designed to offer a range of perspectives from each floor, with 120-degree views over the Dubai Marina. A key feature of the villas are the outdoors areas, shaded by canopies of timber rafters. BBQ areas have been created with freestanding chimneys and natural fires.. g
Ascott and Samsung tie up to offer smart technologies
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apitaLand’s whollyowned serviced residence unit, The Ascott Limited said, it has inked a deal with global electronics giant Samsung to design a serviced residence that will offer guests ‘a smart living experience’. The Singapore-based Ascott aims to test bed the new technologies developed by Samsung Asia Pte Ltd, a unit of South Korean giant Samsung Electronics, at selected Ascott serviced residences by H1, 2016. g Gulf Property 13
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REALTYBYTES
More than 100 Cayan Cantara units sold out
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ayan Group recently claimed that it acheieved ‘tremendous success’ post launching its Cayan Cantara project in Dubai. The first phase of the project was sold out in less than 2 weeks’ time, the developer claims. Cayan Cantara comprises residence and hotel apartments. The development was launched in collaboration with the UAE-based investment company, Shuaa Capital. Cayan Group has now released the second phase of sales with limited number of Cantara residential units to the market. The second phase is being offered to investors at special prices. g
UAE hospitality group will manage Lanka beach resort
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AE-based JA Resorts & Hotels has announced that it will be developing a tropical beach resort in Kathiraveli on the Sri Lankan east coast in partnership with the Gravity Resort Group. GRG will fund the $30 million project JA Eclipse Beach Resort, while JA Resorts & Hotels will be responsible for consultation, and ultimately management of the completed resort (its third on the Indian Ocean). g
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Gulf Property
Damac launches hotel villa; other projects on track
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amac Properties has launched its first hotel villa concept within its flagship Akoya Oxygen master community in Dubai. The Dubai-based luxury developer is selling 3-bedroom unit at the Nova Hotel Villas at a starting price of just Dh1,753,700. Villas range from 3 to 6 bedroom units. Nova Hotel Villas comprise private gardens, library, a fully-fitted kitchen, décor and sound system. The villas will feature energy efficient materials, a
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Damac statement said. The villas are also being managed by Damac Maison Hotels & Resorts rental pool scheme allowing owners to generate returns on their property while they are away. Damac in May also opened its first NAIA Hotels and Hotel Apartments project in Downtown Dubai. NAIA Breeze, a 342-key luxury project with five-star service standards overlooks the canal to one side and the world’s tallest tower to the other. Damac Hotels & Resorts
– which is running the NAIA brand – said that two further hotels will be completed in the next couple of years which will serve Dubai World Central. Damac has also confirmed that 65 per cent of the superstructure works on its US$1.35 billionworth Damac Towers by Paramount Hotels & Resorts in Downtown Dubai is now complete. Company executives have confirmed that work on the Hollywood-themed project has reached the 28th level, in less than two years. g
is an 85,000 square feet development. The project comprises 250 units, with 1 to 4-bedroom apartments ranging in sizes from 904 square feet to 4,144 square feet. The project also consists of penthouse suites, the largest of which covers 12,648 square feet. Prices start at Dh2 million and reach Dh36 million for the development’s Presidential Penthouse.
“Serenia Residences epitomise the ultimate in luxury living for The Palm and indeed for anywhere in Dubai, with the deliberate plan not to include commercial aspects as a part of the development ensuring maximum privacy, peace and quiet in one of the city’s most exclusive and sought-after areas,” said Kareem Derbas, CEO and Co-Founding Partner, Palma Holding. g
Palma launches Serenia Residences alma Development, a subsidiary of Dubai-based Palma Holding and Banian FZCO, a real estate investment company, launched Serenia Residences, a high-end project on the Palm Jumeirah Crescent in May. Designed by Hazel Wong, the architect of the Emirates Towers, the Dh1.5 billion Serenia Residences project
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wasl District Souq opens in Dubai
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asl Properties recently opened Wasl District Souq in the Naif area of Deira, Dubai. Wasl District is being constructed in two phases. Phase one consists of a 211-retail unit souq that sells heritage items, alongside more modern offerings and F&B outlets. Phase two of Wasl District will have residences, offices and a Hyatt-managed hotel. g
DSI reports Dh1.11 bn revenues in Q1 2015
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rake and Scull International PJSC (DSI) has announced its financial results for Q1 2015. Revenues recorded for the quarter stood at Dh1.11 billion, driven by operations in Saudi Arabia and the UAE markets, each contributing 41 per cent and 25 per cent of the cumulative topline achieved in Q1 2015 respectively. Earnings per Share (EPS) stood at Dh0.011 and net profit reached Dh27.8 million. DSI managed to secure Dh378 million worth of new Engineering and General Contracting contracts in Q1 2015, across the hospitality and commercial sectors in its home market the UAE . DSI also said, its Engineering subsidiary Drake and Scull Engineering (DSE) has won a Dh290 million contract to undertake Mechanical, Electrical and Plumbing (MEP) works for a high-end luxury mixed use development project in Downtown Dubai, which is scheduled for completion in 2016. g
UAE firm wins contract for DSI, Lamar project
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amar Investment and Real Estate Development Co, a Saudi Arabia-based real estate developer and Drake and Scull International PJSC (DSI), have announced progress on their joint project, SR1.725 billion Lamar Towers project in Jeddah. The two companies have recently awarded the external façade scope of works to UAE-based Technical Glass and Aluminium Company, for a total value of
SR200 million to mark the next phase in the construction of the twin structures. Drake and Scull Construction KSA is the general contractor of the project. The Lamar Towers project occupies a 34,800 square metre plot with a total built up area of 409,770 square meter on Jeddah Corniche, and comprises two-high rise towers sitting atop a 13floor curved podium. g
REALTYBYTES
Limitless’ to kick start Halong Star
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onstruction of Halong Star, Limitless’ joint venture residential and tourism project in Halong Bay, Vietnam, will get underway this year following government approval of a new master plan and construction drawings, the Dubai-based developer has told the media. Limitless received scale 1/500 approval – a key part of the Vietnamese construction permit process – from authorities in Quang Ninh Province, home of the 200 hectare, $550 million project. A construction tender will be released shortly, the developer said. Limitless’ revised proposal for the project include 340 villas and apartments, a five star hotel, retail complex and leisure facilities. g
Indigo Living hired by Delta International
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elta International Real Estate has partnered with Indigo Living, an interior design firm, to provide design solutions at Living Legends. Tailormade house packs will offer full turnkey solutions for interior decorating and design including furniture, decoration, curtains, bath/kitchen accessories and flooring. For a limited time only, fully furnished packages will be offered at no additional charge for studio apartments; starting at only Dh490,000. g Gulf Property 15
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REALTYBYTES
Falconcity of Wonders starts handing over villas
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alconcity of Wonders has commenced the hand-over of exclusive residential villas of Western Residence North community from April 15, the developer has told the media. The villas, situated in the ‘Wings’ of the Falcon will be home to varied nationalities from over 25 countries. Spread over a total area of 1.3 million square feet, the villas are located next to the Pyramids Park in the master development in Dubai. The prices for the villas range between Dh3 to 7 million. g
Millennium & Copthorne to open two Oman hotels
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illennium and Copthorne, Middle East and Africa has signed deals to develop two hotels in Oman, including the global debut of the new eco-lifestyle brand, Agarwood. Millennium & Copthorne MEA entered into an agreement with Al Madina Hotels and Resorts, the hospitality arm of Al Madina Real Estate Company, to develop the Group’s Agarwood brand in Salalah as well as a new addition to the development pipeline for its innovative budget brand, Studio M in Muscat. g
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Gulf Property
Town Square launches Safi II units after ‘strong demand’
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ollowing ‘strong demand’ from end-use homeowners to the launch of Safi, one of the first apartment complexes in Town Square, Nshama has launched Safi II Apartments, the Dubai-based developer said. Safi II also showcases studios, 1, 2 and 3-bedroom apartments. The
prices start at Dh 349,988 for a studio, Dh499,988 for a 1bedroom, Dh699,988 for a 2bedroom and Dh999,988 for a 3-bedroom apartment. Centrally located in Town Square, Safi II Apartments offers amenities including four state-of-the-art fitness centres, one in each block, and swimming pools. The residences are carefully designed to heighten natural
70%
light across living and dining rooms. The masterbedrooms have tiled floors, sound-proof windows, inbuilt wardrobes and an ensuite bathroom. Apart from district cooling for effortless utility services, all homes come with high-speed data connectivity. Town Square is spread over 31 million square feet near Al Barsha. g
of land plots in Zones A and C of Tilal City in Sharjah have been sold, developer Tilal Properties claims
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AHG and Ritz-Carlton to build Hungary project
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l Habtoor Group has signed a deal with The Ritz-Carlton Hotel Company to operate the luxury brand in the Hungarian capital Budapest. Located at the heart of Budapest, the 192 room hotel overlooks Erzsébet Square with views of St. Stephen’s Basilica. The property will undergo renovation work, which is due for completion in early 2016 ‘in order to align it with
Asteco hired by Al Habtoor, Seven Tides to sell units
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egional property management firm Asteco has bagged two sales contracts from Dubai-based developers to sell units in their projects. Al Habtoor Group has hired Asteco as the leasing agent for Al Habtoor Business Tower in Dubai, the company said in a state-
the Ritz-Carlton brand’, the statement says. Al Habtoor Group already maintains a luxury property in Budapest. The announcement followed a deal between Khalaf Ahmad Al Habtoor, Chairman of Dubaibased business conglomerate Al Habtoor Group and Arne Sorenson, President and CEO, Marriott International last month. “We are delighted to be partnering with the Ritz-Carl-
ton for such an exquisite property to build on our unique portfolio of hotels. We are bringing together two of the best names in the business, both dedicated to offering world-class luxury and hospitality. We look forward to welcoming guests to experience the renewed property in early 2016,” Mohammed Al Habtoor, Vice-Chairman and CEO, Al Habtoor Group, reportedly said. g
ment. The 37-storey Al Habtoor Business Tower is one of only two commercial buildings in Dubai Marina. Available office space ranges from a minimum of 1,600 square feet to full floor options of 7,000 square feet. Prices start from Dh140 per square foot which includes service charges, and all utilities. The business tower is currently home to foreign consulates, multi-national corporations and investment firms. Luxury property developer Seven Tides has also appointed Asteco as the sole
agent for its newly launched DUKES Oceana project in Palm Jumeirah. “Just one month after the launch of this development, 65 per cent of the hotel apartments have been sold representing the completion of phase one. Just 35 per cent of the studio and 1-bedroom units remain, and we are confident that with Asteco’s network of contacts and unrivalled market expertise, we will secure the additional investors required to close-out the sales,” said Abdulla bin Sulayem, CEO, Seven Tides. g
REALTYBYTES
Raine & Horne wins deal to sell Anantara Residences
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aine & Horne Dubai has signed an exclusive contract with Dubai-based luxury hospitality developer Seven Tides, to market the freehold luxury five-star Anantara Residences on the Palm Jumeirah, worth Dh1.4 billion. The Anantara Residences, Palm Jumeirah comprises 442 luxury apartments and 14 penthouses. The 1 and 2bedroom apartments offer nine different layouts. All apartments are accented with large balconies for al fresco entertaining, most with sea views. g
Tasweek, India’s MAMS Holdings Group tie up
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ubai-based Tasweek Real Estate Development and Marketing has signed a Memorandum of Understanding with India’s MAMS Holdings Group, a development and construction firm. MAMS Holdings will work with Tasweek in pursuing real estate opportunities and related businesses in residential, commercial and other mixed-use projects in India and the UAE. Tasweek will provide MAMS Holdings with project and investment opportunities in the UAE and the broader GCC. g Gulf Property 17
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RAK Properties release PII of Flamingo Villas
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AK Properties has launched the second phase of the Flamingo Villas project that is part of the Mina Al Arab community in Ras Al Khaimah. The master developer of the coastal residential project also disclosed that construction of the first phase of the Flamingo Villas project has progressed as scheduled, with the handover of units expected by the end of this year. Flamingo Villas has been a highly anticipated and much sought-after project given its enviable setting amidst lush landscaping, protected coastal wetlands and natural pristine beaches. Demand for the first phase of the project was exceptional and RAK Properties expected even greater interest for the second phase which comprises 57 villas, ranging from two to three bedrooms. Residents of Flamingo Villas can enjoy a range of amenities, from a central park which is connected to swimming pools and tennis courts. Sultan Al Qadi, Managing Director and CEO of RAK Properties said, “By the end of this year we hope to hand over the keys to the owners of villas from the first phase, and today we are excited to launch the second phase of this exquisitely designed project that will allow residents to enjoy the very best that nature has to offer.” g
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Gulf Property
Nakheel opens Ibn Battuta Mall PII lease
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roperty developer Nakheel launched another 766,000 square feet of shop and restaurant space at world’s largest themed mall Ibn Battuta 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 this year. The extension will bring a new, one million square feet mall, multi-screen cinema complex, car park and a second hotel with 370 rooms to
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Falconcity promotes ‘White Points’
ubai Police has recently honoured Falconcity of Wonders for supporting Dubai Police’ White Points System, which usually punishes traffic violators by giving ‘Black Points’. Falconcity of Wonders was honored with the Platinum Sponsor award of the White Points System held by Dubai Police held at Habtoor Grand Beach Resort and Spa, Dubai Marina. The award was received by Al Harith Al Moosa, Vice Chairman and Deputy General Manager of Falconcity of Wonders on behalf of Salem Al Moosa, Chairman and General Manager of Falconcity of Wonders.
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
Al Harith Al Moosa, said, “We are honoured to support Dubai Police’s initiatives. We are delighted that the 2015 White Points System proved to be a grand success for the Dubai Police and hope that they achieve their goal of zero accidents soon.” Falconcity continues its commitment towards supporting the initiatives of Dubai Police for the third time, demonstrating the ongoing responsibility towards the development and welfare of Dubai’s community
shops and restaurants. Omar Khoory, Director of Nakheel Retail, said: “The mall already attracts 52,000 visitors a day and more than 200,000 on its busiest weekends. Our expansion will transform the area into a huge retail, dining and leisure destinationl. g
and governing administrations. The White Points System is aimed at encouraging drivers to adhere to traffic rules by rewarding them with prizes in cash and kind. This year, a total of 1,500 vehicle drivers out of 18,000 eligible motorists were selected for the White Points System. Emiratis topped the winners list with 300 winners, followed by 218 Indian citizens, 124 British, 83 Egyptians, 66 Canadians, 40 Syrians and others.* g
18 Christian Lagarde_Layout 1 28/05/2015 18:07 Page 1
Global Economy and Challenges
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entral banks have played a critical role in fighting the recent crisis, and our commitment to work with them is stronger than ever. Despite the massive and unconventional demand support deployed in several places over the past few years, notably by central banks, the crisis has had a long-lasting effect on growth and job creation. I am myself very concerned that slow job growth and rising inequality will come back to haunt us. We need ambitious and decisive policies to boost today’s growth and tomorrow’s growth potential, and to build resilience to existing and emerging challenges. I am reminded of a saying by Michelangelo: “The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark.” Michelangelo reminds us of the importance of aiming high, of aiming for strong, sustainable, balanced, and inclusive growth. Before introducing President Mario Draghi, I would like to touch briefly on the global recovery and monetary policy, and sketch succinctly what can be done to support strong, sustainable, balanced, and inclusive growth. Growth has been diverging and monetary policy settings across major economies have become asynchronous, with further easing in the euro area and Japan, while
Financial stability risks are rotating, from advanced economies to emerging markets, from banks to the non-bank financial sector, and from solvency to market liquidity risks. Policy will need to adapt to this changing environment... – Christian Lagarde
the United States and the United Kingdom remain on the path toward normalisation. The dollar has appreciated, while the euro and yen have weakened. At the same time, market volatility has increased from historical lows, with rising risk spreads and currency depreciation in some emerging markets. Financial stability risks are rotating, from advanced economies to emerging markets, from banks to the nonbank financial sector, and from solvency to market liq-
uidity risks. Policy will need to adapt to this changing environment. In a less-than-stable geopolitical context, developments and prospects are thus mixed at best, and growth has disappointed many times since the global financial crisis. A “new mediocre” remains a distinct possibility—in other words, low growth for a long time. This brings me to my second point – the policies to prevent economies from settling into a “new mediocre.” Monetary policy has had, and will continue to have, an important role to play, and here I would like to offer my support for what Mario (Draghi) and his colleagues at the ECB have been doing. Notably, the significant further easing of monetary policy in January of this year has done much to stave off the threat of deflation and support weak demand. Monetary policy and price stability are essential for strong, sustainable, and inclusive growth. But monetary policy is not enough, and needs to be complemented by other measures such as structural reforms are crucial to unleashing an economy’s productive potential. Regulations in labor and services markets, for example, can be streamlined in many cases. Fiscal consolidation should be designed to protect the capacity of the poor and vulnerable to fully contribute to the economy and society. In advanced economies, more efficient fiscal policy could
OPINION
CHRISTIAN LAGARDE
Managing Director International Monetary Fund
also increase the long run growth rate by one third of a percentage point per annum—a substantial pickup when sustained over many years. We also need to keep increasing opportunities for women. By some estimates, if the female labour force participation rate were equal to that of men, GDP would increase by 5 percent in the U.S. and 9 percent in Japan. More generally, growth needs to become more inclusive to be strong and sustainable. To this end, the IMF has launched a new initiative to cover jobs, inequality, gender, and energy issues in our surveillance of member countries’ policies, and we remain actively engaged in the sustainable development agenda unfolding throughout the year. In reflecting upon the challenges in the aftermath of the global financial crisis, it comes to mind that difficult times call for great leadership. And, to my mind, there are few other figures who have demonstrated greater leadership than Mario Draghi. g Gulf Property
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20 Rob Jackson_Layout 1 28/05/2015 01:12 Page 1
OPINION
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ROB JACKSON
Director The Royal Institute of Chartered Surveyors (RICS), Middle East and North Africa
uilt Up Area’, ‘Gross External Area’, ‘Gross Internal Area’, ‘Net Internal Area’, ‘Net Useable Area’, ‘Leasable Area’, ‘Air Conditioned Area’, ‘Carpeted Area’, ‘Common Area’, ‘Limited Use Area’! These are just some of the terms used in defining building space measurements across the World. The problem is that in many countries, each of these terms is defined and reported in very different ways. At present real estate sector stakeholders across the globe are certainly not ‘talking the same language’. Furthermore, when measuring a particular floor space within a building, the elements which are included and what is excluded also differs from country to country. For example building areas in New York are commonly measured from the tip of the nose of the gargoyles which protrude from the external corners! In certain countries external features such as swimming pools or car parks are included in building areas, even if the car park is remote from the building! In such ‘local’ mar-
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Talking in the ‘Same Language’ kets the inclusion of such features may be appropriate as per the ‘local’ standards but the real estate sector is now far from ‘local’ and is today a truly global one. There are in fact so many differing ‘standards’ across the world relating to building space measurement that one could say that there is ‘no standard at all’! Research undertaken by Jones Lang LaSalle (JLL) has shown that if the same floor space were to be measured but using a range of common standards from different parts of the world, the same floor space could theoretically be reported with up to a 24 per cent variance! Clearly this has huge implications on all stakeholders involved in real estate and is highly relevant if we were to ask the following questions: What floor space is a developer selling? What floor space does an investor think he is buying? What floor space is used for valuing a built asset? What floor space does a corporate occupier need for operational purposes? What space is included for rental purposes? Does the tenant understand what he is leasing and paying for? The inconsistency in building measurement is a significant problem which leads to considerable numbers of disputes, legal costs and brand /relationship damage. With the backing of the World Bank and IMF, in mid2013 an initial group of 13 professional bodies from across the globe, including RICS, convened a meeting
At present real estate sector stakeholders across the globe are certainly not ‘talking the same language’. Furthermore, when measuring a particular floor space within a building, the elements which are included and what is excluded also differs from country to country.
– Rob Jackson
in Washington to address this problem and for the first time agreed to work together collaboratively to produce a set of industry standards which could be adopted globally. These standards are the ‘International Property Measurement Standards (IPMS)’. The initial coalition of 13 now stands at over 65 with growing numbers of industry stakeholders including governments and global corporate occupiers committing their formal support to the standards and plans for their adoption. Across the Middle East, RICS has been working with several governments to ensure the new standards will be ‘fit for purpose’ in the local markets and the IPMS initiative is receiving huge support, with Dubai and Ajman in the UAE already pledging
their support. Dubai was in fact the first government in the World to do so as they recognised the significant benefits IPMS brings in terms of market transparency and confidence for all stakeholders. Clearly international clients and end users of property information will benefit from IPMS as a means of comparing property across borders and even at a more localised level, though, clients can often represent foreign companies or investors. Increasingly IPMS will become the norm. The standards are being introduced on a rolling basis with the first standard, IPMS for Offices released in November 2014 and the next one, IPMS for Residential Properties to be released in Q3/Q4 this year. Focus will then shift to retail and industrial properties. RICS and the other coalition partners are also now working on a range of supporting professional statements, conversion tools, training, certification schemes etc to ensure the standards are successfully implemented and embedded across the globe. So the next time you are involved in any kind of real estate discussion which involves building areas and floor space measurements be specific as to which standard has been used and start 'talking the same global language’ by requesting or specifying the International Property Measurement Standards (IPMS). g
21 Abdallah Massaad_Layout 1 28/05/2015 01:09 Page 1
Impact of oil price on real estate
OPINION
ABDALLAH MASSAAD
Chief Executive Officer RAK Ceramics
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Lower oil price and lower steel price is expected to reduce the cost of property development
il prices fell dramatically during the latter part of 2014 hitting the lowest price per barrel since the depths of the economic crisis in 2009. So what does this mean for the UAE and in particular, what does it mean for the real estate, construction and building materials sectors? As a country, the UAE remains in a strong position despite the fluctuation in oil prices. With 71 per cent of the country’s GDP coming from non-oil sectors, it is this diversification that makes the UAE strong. A booming construction industry, expanding manufacturing base, tourism and a thriving services sector all contribute to keeping the economy healthy. A reduction in local freight and transportation costs across all sectors has been seen as a result of the drop in oil prices. Alongside this we have seen a reduction in marine freight rates in recent
months. Besides these, the construction sector is also blessed with a steady drop in steel prices over the last three years and corrections in cement prices, both of which preceded the oil price decline. This is great news for property developers and it is likely that they will use the opportunity to push forward any delayed or outstanding projects and take advantage of these reduced costs. The construction and building materials demand in the region remains fairly robust due to welfare policies for infrastructure expansion and commitment to planned developments designed to expand the trade and tourism proposition. Over the next two to three years this should remain stable as governments’ enjoyed a windfall surplus under the high oil price regime. The sector as a whole will see cost reduction from
freight impacts in the short term and combined with more affordable energy prices across the board will provide stability to demand growth. With no indications to suggest reduced government spending, and with World Expo 2020 on the horizon it is business as usual for the construction sector. The UAE has always been seen as an attractive investment opportunity for non-oil producing nations and it is likely that this will increase as the low oil price frees up cash for investors. As a locally based manufacturer of building materials, how is the lower oil price affecting us? The ceramics and bathware sector in the region is slowly moving from being project led to being led by consumers/users. There is a greater desire to improve personal living spaces and along with economic growth, consumers now demand better specifications and world
class products. However it will continue to be driven by projects in the short to medium term. RAK Ceramics is a global company and whilst over 70 per cent of our capacity is based in the UAE, only 30 per cent is sold domestically with 70 per cent being exported worldwide to over 160 countries. Transport costs therefore are an important consideration for us. The drop in oil price is favourable and while the price stays low it gives us a cost advantage for exporting. Obviously it depends on where the price eventually stabilises as to whether or not this will continue in the long term. We are also very positive about real estate opportunities in the GCC, which is our home market and where we already have a very good market share. We have a strong track record with architects, governments, designers, and builders, especially here in the UAE, where there are still lots of project developments in the pipeline. As suppliers of building material products, this is extremely positive for RAK Ceramics. g Gulf Property
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22 Essa Al Ghurair_Layout 1 28/05/2015 01:20 Page 1
OPINION
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ESSA AL GHURAIR
Chairman Al Ghurair Resources
lobal Warming, Food Security and Sustainability are some of the issues that are vital for socio-economic development and stability in the region. Food security can best be described as the sufficient availability, access and use of food or nutrients, which ensures survival and growth of the human population. The World Health Organisation (WHO) defines food security to exist “when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life”. With a fast growing global population, food production has to also intensify substantially from less available land due to urban expansion and land degradation, in order to meet future food needs. This makes food security arguably one of the greatest challenges the world is facing and directs to the importance of optimising available land productivity. Food security is fast becoming a focal area of attention for the Gulf countries that are increasing strategic food storage and investing in agricultural farms overseas to strengthen food security.
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Food for thought To help stimulate the discussions, let me offer some food for thought: Gulf countries import up to 90 per cent of their food from abroad. Population of the GCC countries is expected to cross 53.5 million in 2020 from 36 million today. The food consumption in the region will expand at a compound annual growth rate (CAGR) of 3.1 per cent over 2012-17, reaching 49.1 million metric tonnes by the end of 2017, according to some reports. This increase is attributed to the rapidly growing population in the GCC, increase in foreign tourists as well as the rising income levels of the region. Per capita food consumption for the GCC region is forecasted to reach 983.0 kg 2017, said a recent report by Alpen Capital. Food import bill of the countries in the Gulf region will double from US$24.1 billion in 2009 to US$53.1 billion by 2020, according to a research report. Although nominal GDP is forecast to soar to over $2 trillion in 2020, the ability of the GCC governments to ensure food security would largely depend on cash reserves. Ensuring food security is vital for the economic growth and social stability in the Gulf region. As we embark on an exciting journey where our country prepares for the next phase of development to become a smart and happy nation guided by the Government’s Vision 2021, food security could help our ambitious journey ahead. It is not a governmental or a private sector issue — it is something that attracts the attention of all of us and
While we can’t change the past, we can change the future and while we can’t change the nature, we can change ourselves and definitely can overcome these challenges by undertaking certain initiatives...
– Essa Al Ghurair
therefore requires shared responsibility. However, public and private sectors in the Gulf countries have already made steady progress in facing food security and climate challenges. Over the last few years, governments and the private sectors have undertaken a number of initiatives to create greater awareness on the subject. Saudi Arabia invested close to $23.1 billion in food security initiatives in 20112012, which included financial and oil aid to target countries in lieu of agricultural lands. Saudi Arabia is planning to expand focus towards Eastern countries to secure its food supplies. The UAE has been very active in its efforts to ensure food security by promoting aquaculture projects. Major initiatives include the development of a 360,000 square meter fish reserve in Fujairah; A 56,000 square meter Siberian caviar farm in Abu Dhabi and a land-based 500,000 square meter recirculation aquaculture system
(RSA) farm in Abu Dhabi to produce 4,000 metric tonnes of fish, annually. The UAE is improving food security through purchase of arable lands in East Africa, Southern Europe and South Asia. Al Dahra, a private firm, which seeks to partner with UAE government to ensure food security, acquired 8 agricultural companies in Serbia. While we can’t change the past, we can change the future and while we can’t change the nature, we can change ourselves and definitely can overcome these challenges by undertaking certain initiatives, such as: Invest in food-growing farms to ensure uninterrupted food supply. Encourage private sector to play their role in ensuring food security. Develop and control an efficient food supply chain to ensure cost-efficient and uninterrupted supply of food. Create sufficient buffer or strategic stocks for emergency needs. Strategic stocks can provide GCC governments with a degree of insurance against price and supply risks. Incentivise and subsidise farming and cultivation of food grain. Create an eco-system of food production, supply and storage. Al Ghurair Foods and Al Ghurair Resources along with our holding company — Al Ghurair Investment LLC — has realigned businesses to support the social and economic needs of the UAE in line with the UAE government’s vision to create a healthy, prosperous and a happy nation by investing in critical businesses such as food and commodities. g
23 Mohannad_Layout 1 28/05/2015 01:18 Page 1
Tips for investing in real estate
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Know why you want to invest in property! t still amazes me the number of times I ask prospective investors why they want to invest in property and what they expect their investment to do for them. Quite often I am met with a shrug of the shoulders… You must have a clear understanding of what you are trying to achieve and what role your property portfolio will play within a larger diversified portfolio. What proportion of your total investment portfolio is allocated towards property? Towards stocks or bonds? Towards gold or commodities? etc. What is your source of finance and where do the greatest risks lie in the event of an economic downturn. How liquid might you need to be? All these questions (and many more) need to be addressed and the more skillful you are at conceptualising your wealth generation schematic, the greater your likelihood of generating successful strategies to grow your wealth. Set your objectives carefully as success in property investment can only be attained when (and if) those objectives of the investor have been realised. It’s as simple as that. A vital component of your property portfolio investment strategy is the careful setting of financial objectives. These objectives, which would be reviewed on an an-
nual basis, must include such elements as total return, capital appreciation, revenue streams, nett results and eventual divestment values all wrapped up in a time frame deemed strategically optimal for the investor. If the objectives of the investor have been met, then the investment can be considered a success. Very straight forward. However, many investors suffer from what I call the “should have, could have, would have” syndrome. This syndrome occurs when the investor feels that their investment did not outperform the market and therefore, underperformed, leading them to depart from their initial strategy, revert to short term thinking horizons and making poor decisions regarding their portfolio.
Think long term for your greatest success Of all my clients, those who have had the greatest success possess the ability to think long term, make rational, well researched and carefully thought out decisions with the end objectives in mind and understand that every real estate industry globally will go through cycles of growth and contraction. They do not get duped into making short term decisions based on inevitable market fluctuations and they treat disturbing headlines as the catalyst for gaining a greater understanding of the underlying events that are shaping the industry and if any opportunities may conceivably
OPINION
arise. This is what I like to describe as proactive investing.
Know your stuff!! As with any investment, investing in property is all about recognizing and capitalizing on opportunities that are consistent and supportive to your overall wealth accumulation objectives. In order to do this, you must have some knowledge about the industry. The old adage of “Don’t invest in anything you don’t know” applies. This doesn’t mean you have to be an expert, but you need to be able to communicate intelligently and knowledgably with the experts. You need to be able to identify, engage and work with a professional in the industry... As astute, skillful and knowledgeable as you may be, a reputable, experienced and client focused full service agency will greatly enhance your levels of success. Selection of the right agency is a skill in itself and it’s up to you to choose wisely. Don’t fall into the trap that the cheapest will be good enough as this is rarely the case. Eliminate risks Plan your finances, cashflows, capital requirements, debt levels etc. very carefully and always stick to an adage that I quote often … “Plan for the worst and hope for the best”! as many of my clients have been successful over a long period of time by adopting this philos-
MOHANNAD ALWADIYA
Managing Director Harbor Real Estate
ophy! Deal only with reputable brokers, developers, financiers and consultants. Real Estate investor protection has come a long way in Dubai and there are no excuses for unnecessarily exposing yourself to risk. The professionals serving Dubai’s real Estate industry is steadily developing the sophistication seen in more mature markets around the world. Areas including economic and financial analysis, appraisal and real estate evaluation, market analysis and forecasting, marketing and effective brokerage and property management services are improving all the time. The skills mentioned above are hardly rocket science to an experienced and professional real estate practitioner and good work has already done by Dubai Real Estate Institute and Real Estate Regulatory Agency in helping build a body of professionals who are knowledgeable, conversant, proficient and ethical in their practices. g Gulf Property
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COVERSTORY
Sustainable Cities Diamond Developers to build more
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Gulf Property Exclusive
ubai-based Diamond Developers, developer of the Sustainable City in Dubai, is looking at possibilities of developing more Sustainable Cities across the region due to strong investor interest, according to a top company official said at a recent media briefing. “We have already been approached by authorities and investors to set up projects
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like the Sustainable City in other countries in the region,” Faris Saeed, Chief Executive Officer of Diamond Developers, said. “However, since we are still in the development stage of the first Sustainable City in Dubai, we want to develop it as we planned first, then look into other countries.” Diamond Developers had earlier handed over more than 1,000 homes at Dubai Marina built within a series of towers serialised as Marina Diamond towers. The Sustainable City (TSC) is Marina Diamond’s first integrated master-
planned mixed-use development that will host more than 500 villas a number of apartment complexes, an eco-resort, a school, a retail centre, a bio-dome, a research centre on sustainability, a lake and green spaces. The project has been well supported by Dubai Land Department which promotes green and sustainable development. TSC comprises various land-uses such as residential, commercial, educational, urban farming, leisure, healthcare and The Sustainability Center of Excellence. The project has a green
buffer zone for jogging, walking that is protected with a row of trees to support the environment and ecology.It will also built a central green zone along the lake with rubberised jogging track surrounded by trees, grass, seating and rest areas for residents, and a falaj - irrigation system to support the plantation across the project. “It is the first of its kind project in the world which will generate 75 per cent of its energy needs through rooftop solar panels,” Saeed said. “Besides, it will host a science museum, a planetarium
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COVERSTORY At A Glance
Dh1.2 billion development cost of the Sustainable City
10,000
trees to be planted to ensure greenery at TSC
500
villas are being built
2,700
residents to live at the Sustainable City
Above: Faris Saeed, Chief Executive Officer of Diamond Developers, which is developing the Sustainable City Left: An artist’s impression of the Sustainable City
and a bio-dome to reflect on and develop plants and support greenery within the project.� The homes at the Sustainable City will not only be energy efficient by reducing energy consumption by 50 per cent to just 80 kilowatt per hour energy consumption instead of 170 kilowatt hour and they will be water efficient – requiring less water to maintain. Saeed said, the buildings will have better green coding than the LEED ratings as the buildings within the Sustainable City will be much better than even the Platinum-rated
structures. The project will be alight with LED lighting at night while it will encourage battery-charged vehicles within the project. The project will offer limited vehicular access to the outer perimeter ring road and parking lots only. This means internal transportation relies on zero-emission vehicles, charged by solar panels, and alternative modes of transportation such as electric vehicles provided to each household. Internal public transport, electric buses, bicycles and segways, electric vehicles charging
stations will be provided across the city, while subsidy for an electric car for each household, electric shuttle bus connecting the city to the nearest metro station are on the cards. The project will be delivered in phases between 2015 and 2016. Its first phase which is expected to be completed in the third quarter of this year, includes the Green Belt Buffer Zone, Equestrian Center, the Central Green Spine, residential clusters 15, Community Mall and all utilities. Its second phase that in-
cludes the eco-resort and country club, the school, science museum and planetarium and Sustainability Center of Excellence, are scheduled for completion by December 2016. The Sustainable City will have a very good waste management and recycle system to reduce and reuse waste. Organic waste will be composted and turned into fertiliser and used in the productive and non-productive landscapes while waste management awareness programmes will be offered on how to reduce and reuse waste. It will host fully-integrated sorting-at-source waste bins throughout the entire community. One of the most interesting features of the project is the on-site water treatment facility that will help the Sustainable City reuse the same water again and again and reduce the use of water. g Gulf Property
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COVERSTORY
This is how the Sustainable City would look like when completed
Sustainable City gets ready for residents
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Gulf Property Exclusive
ome buyers at the Sustainable City are expected to move in during the third quarter of the year as the first phase of the Dh1.2 billion green neighbourhood project nears completion. The project is being developed by Dubai-based real estate developer. Diamond Developers said, its five million square feet development the Sustainable
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City (TSC) is on course to complete Phase 1 by Q3 2015. Phase 1 of the project comprises Five residential clusters of 100 villas each, a community mall, a central green spine, an Equestrian Centre, horse, bicycle, walking and jogging tracks, and all project infrastructural works. Phase 2 which comprises an eco-resort, a country club, a green school, a science museum and The Sustainability Centre of Excellence, is scheduled to be completed by the end of 2016. “We are going to welcome the first 100 residents by the
third quarter of this year once the final touches are done and buildings are cleared for handover,” Faris Saeed, CEO, Diamond Developers, told the media during a site visit last month. “The City was launched in 2014 with the support of Dubai Land Department, with a focus on sustainable living through a multitude of social, environmental and economic initiatives.” Prices of villas range from Dh3.8 million to Dh5 million at a rate around Dh1,150 per square feet, depending on the size. “About 50 per cent of the
project has been sold out to buyers while 25 per cent were offered to investors,” he explained. The project is being self-financed from sales proceeds and our own resources. “It is the first of its kind project in the world. It is a practical implementation of social, economic and environmental (SEE) sustainability. It embodies the true meaning of sustainable living,” he added. Located on a 46 hectare piece of land at Al Qudra area of Dubailand, the project will host an educational, research, museum, planetarium, eco-resort and spa and
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COVERSTORY
“It is the first of its kind project in the world. It is a practical implementation of social, economic and environmental (SEE) sustainability. It embodies the true meaning of sustainable living...” – Faris Saeed, CEO, Diamond Developers
Faris Saeed, Chief Executive Officer of Diamond Developers, in front of a model of the Sustainable City
community facilities, a lake, a jogging track and a buffer central green zone to cleanse the environment. The project will host 3,000 productive trees that will produce fruits. It will have a rubberised jogging track. The project, which will source electricity to power its residents’ homes mostly from solar energy, is expected to offer electricity to its residents at up to 30 per cent cheaper while its service charges will be generated through the lease and rental income from retail outlets where the residents will own shares proportionate to their
household size. "With a priority to reduce our carbon footprint and minimise negative environmental impacts, TSC addresses seven key environmental elements: passive and active design strategies and ecofriendly construction building materials; renewable energy on-site production to meet most of the city's needs; 100 percent wastewater recycling to reuse for productive and non-productive landscapes; cooler and cleaner air for the city; urban farming to produce herbs, fruits and vegetables; waste -sorting at source and recycling pro-
grammes; solar powered transportation systems for internal and external use," added Wassim Adlouni, Executive Director, Diamond Developers, said. The project will host a 4,400-square metres equestrian centre that could host 32 stables. The project will host a community mall and the car parking lots will have battery charging stations for solar and battery-powered cars. "To enhance the quality of life for its residents, TSC encourages a strong sense of community through its design, amenities, and social
activities; provides advanced healthcare facilities; and will be a knowledge hub for students, academics and professionals alike," said Alya Alhamad, Social Sustainability Manager, Diamond Developers. The project will host an applied research centre of excellence for research in sustainability and a science museum and planetarium with a 10-diametre dome spread across an area of 2,300 square metres of space. “Contrary to general opinion, we have validated the fact that the cost of conGulf Property
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COVERSTORY
The ground reality – at the Sustainable City as it’s getting ready to receive new residents from the third quarter this year
structing sustainable developments is equivalent or even less than the cost of conventional developments. Furthermore, we have introduced a new concept for economic sustainability whereby a NetZero service and maintenance fee scheme are applied as a result of shared revenues from the community mall rentals” stated Emil Samarah, Chief Commercial Officer of Diamond Developers In an exclusive interview with Gulf Property, Faris Saeed, Chief Executive Officer of Diamond Developers, gave a detailed lowdown of
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the project. Excerpts:
Gulf Property: How did the idea of developing the Sustainable City evolve? Faris Saeed: We have been developing properties for more than a decade with solid track record of delivering more than 1,000 homes. So, when we started to plan this project, we thought of doing something new, innovative and something that will add value to the overall property development in the UAE. This is when I and my partner – Architect Wassim Adlouni – started to think about
the project. We wanted to develop something new and unique, something that is environmentally friendly and sustainable. Then we started to discuss the idea of a green city with Dubai Land Department and they started to encourage us on the sustainable aspect. We then started to source technology partners and designers to help develop the project. That’s how the Sustainable City developed as a concept. Then we started working on the practicality, the viability and the development aspect of the project. Today, it
is a reality.
Is it a challenging project – in terms of getting the right technology to support your vision? The problem lies in trying to find the best supplier and the practicality of it. You can easily develop a concept – easy on the drawing board as technology allows it. However, the most difficult part is the implementation – the construction part and ensure that it works. Part of the problem is that this is for the first time someone is doing it. So, there aren’t any examples in this
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COVERSTORY
At A Glance 450,000
square feet of parks and landscaped area
5,000,000
square feet of land covered by the Sustainable City
143 villas
bungalows will be offered by eco-resort within the project
10 MW
power generation by solar panels on rooftops
region of such a project. There are many chances that we could go wrong. Everything is on a trial and error basis. Luckily, we have a very good design and engineering team that is working hard to ensure that everything is done as per design and more importantly, it works as per specifications. So far, things are looking very good and we are all excited that the first phase is getting ready for delivery.
What are the key differentiators of this project compared to others?
First, there are no other comparable projects. It is a whole new concept. The villas, for example, are 50 per cent more energy efficient. They consume 50 per cent less energy than the traditional homes. Active lifestyles are very much encouraged here. Over 50 per cent of the City consists of parks and landscaped open spaces all linked together with pedestrian-only streets and sikka. There will be 3,000 productive trees that will bear seasonal fruits that the residents could consume as part of our motto of a healthy living.
Besides, we are offering a green lifestyle, where your car will be a battery powered, your home will receive power from solar energy and you are going to live at a very low carbon emission environment. I don’t think there are any other projects in Dubai that offer such green lifestyle. When you call the project sustainable, what do you actually mean – in a layman’s term? Sustainable development consists of balancing local and global efforts to meet basic human needs without
destroying or degrading the natural environment. Sustainability is something that improves the quality of human life while living within the capacity of eco-systems. Sustainability is based on a simple principle: everything that we need for our survival and well-being depends, either directly or indirectly, on our natural environment. Sustainability creates and maintains the conditions under which humans and nature can exist in productive harmony, that permit fulfilling the social, economic and other requirements of present and future generations. Sustainability is important to making sure that we have and will continue to have, the water, materials, and resources to protect human health and our environment. Gulf Property
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Construction works in progress as the Sustainable City gets underway
Let me give you an example: the water that will be used in the project, will be 100 per cent reused. The power that the project’s residents and businesses will consume, will largely come from the solar power generated by the household themselves. As it stands, the rooftop solar panels will produce 10 megawatts of power – enough to serve the community. About 75 per cent of the total power needs in the households and the overall project will be captured from solar energy through solar
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panels, without affecting the environment. For power and water, our reliance on external source will be minimal. The cars that will ply on the roads will be powered through battery – which will source the power from solar panels. The energy bills will be much lower for residents in comparable homes in other projects – it is a direct saving from sustainable development. The project will generate a lot less waste. However, it will also recycle the large chunk of the waste while the rest will go into a compost
plant to develop fertiliser to be used for plantation and greenery. Extra fertiliser would be sold in the market. If these aspects do not make a project sustainable, I don’t know what will.
Will it be a carbon neutral neighbourhood – like the Masdar City? I would not make such a claim. However, we would monitor the carbon data and try to improve carbon footprint as we move forward. The Sustainable City provides owners with unique and highly attractive benefits. It demonstrates that luxury
living is possible while following sustainability standards. The Sustainable City will generate much of its own electricity through city-wide and rooftop solar panels. The inspiring architectural designs take into consideration the natural aspects of sunlight, wind and orientation in order to improve air quality and ensure a cooler city microclimate. It will have a much reduced carbon emission level. So, our carbon footprint will be much less than comparable project of our size. For a project that was
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launched in 2013, you have done well to deliver it by 2015. How is the construction work of the Sustainable City going on? As you might have seen, we are completing the first phase of the project and will deliver in the next few months. We launched the project in 2013 and started construction in 2014, after receiving necessary approvals from the Land Department and the Real Estate Regulatory Agency (RERA). Most of the civil structures have already been completed while the infrastruc-
ture is already in place. We are carrying out the landscaping work in tandem with the overall progress. The second phase will be delivered next year. So, we are on track as planned and promised to our buyers.
How is the pricing of the villas? Are you comfortable with the sale? Our price per square feet for the villas is around Dh1,150 is very reasonable and lower than market price. With Dh1,150 per square feet, the price of villas range between Dh3.8 million to Dh5 million depending on the
size. This is a very attractive price for villas and you might have seen that we have not added premium on such a unique and prestigious project, which we could have. Every resident at the Sustainable City will have a better and healthier lifestyle that promotes sustainability. On top of that, the residents will have 25-30 per cent less utility bills.
I believe, the project offers zero net service charges and zero net maintenance fees? Does that mean the residents will not have to
“Every home-owner will be given a share of ownership in retail areas in the community mall proportionate to the size of their home and investment – that could generate enough revenues to pay for their service charges and maintenance fees. Which means, as a developer, the income that we could have generated for ourselves as developers, we are passing it to the residents so that they do not have to pay service charges and maintenance fees...” – Faris Saeed Chief Executive Officer Diamond Developers
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The outer green belt and the horse running track at the Sustainable City
pay service charges and maintenance fees? How would you achieve these? We have carefully developed a business plan to manage the common area, maintenance of the civil structures while ensuring energy efficiency, waste collection and disposal and other maintenance-related activities. Every home-owner will be given a share of ownership in retail areas in the community mall proportionate to the size of their home and investment – that could generate enough revenues to pay for their service charges and maintenance fees.
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Which means, as a developer, the income that we could have generated for ourselves as developers, and benefit from it – we are passing it to the residents so that they do not have to pay service charges and maintenance fees. This is a unique model that will make the project sustainable. So, there would be guaranteed pool of income from the project that will pay for the maintenance and the well-being of the project and ensure a longer life-cycle of the eco-system. Why would a buyer invest
in your project – in addition to the above mentioned benefits? We are offering the solar panel installations free of charge. So, the residents will not have to pay for their solar panels. Besides, they will be able to avail free electric buggies to move around. We are also offering free green star rated home appliances. All these are tangible benefits, along with the zero net service charges and zero net maintenance charges. For an end-user perspective, these are net savings that the residents will gain by buying a
home at the Sustainable City.
How is the sales going on? The sale has been going well. About 25 per cent of the project was sold off-plan. So far, 50 per cent of the project was sold to mostly end-users while 25 per cent was sold to investors. We have kept the 89 apartments for rent. The retail units will also be on lease so we are not selling any of them. The school and the eco resort and spa will also remain a source of recurring income and make the project financially sustainable.
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Diamond Developers
iamond Developers is a Dubaibase real estate developer and investor evolved out of the emirate’s freehold property market as it opened to foreigners in 2002. Established in 2003, Diamond Developers was one of the first companies in Dubai to enter the freehold property and real estate development industry. Since the early days, Diamond Developers has conceptualised and delivered a portfolio of premium developments of high economic and aesthetic value. It is credited to deliver more than 1,100 homes at Dubai Marina since inception. Embracing the principles of sustainability, Diamond Developers is focusing on urban development projects that minimise the impact on the environment and improve the quality of life of the community without compromising the needs of future generations. Diamond Developers’ vi-
Who are your investors and buyers of homes at the Sustainable City? It’s a mixed bag. I do not have the actual breakdown with me. We have a wider buyer and investor base of local, regional and international buyers. There are Arab investors, Asian home buyers, Western as well as other regions as well. It is a wide spread and a good mix.
How are you financing the project so far? Have you sought bank finance? The project is mostly self-financed from our own re-
sources. About 25 per cent of the project was sold off-plan that gave us some revenues to kick-start the project while the 25 per cent that was sold to investors also helped us finance the project. However, the company used its own resources to fund the rest. When we launched the project, we had commitments to sufficiently fund it’s development. From day one, we were fully committed to execute the project. Besides, bank finance is available for us to tap at any time – now that the project has crossed certain mile-
stones. We never had issues relating to finance. That’s why the project went off smoothly so far.
Now that this project is at an advanced stage and looks like you are on track to deliver your promise to the customers, what are your thoughts on developing such projects in other countries – and help spread the message of sustainable development? We have been approached to develop similar projects elsewhere. The Sustainable City in Dubai is a pilot project and it
COVERSTORY
sion is to become a regional leader in offering practical sustainable living solutions and to inspire people to lead healthy lifestyles.
Sustainable City Project
The Sustainable City (TSC) is a unique and practical implementation of social, economic and environmental (SEE) sustainability. Through stakeholder engagement, innovative design and future monitoring to sustain, the city embodies the true meaning of sustainable living. With 46 hectares, a population of 2,700 residents and located in Dubailand on Al Qudra Road, the Sustainable City is a 20 minute drive to both Al Maktoum International Airport and the Burj Al Arab Hotel. The mixed-use master planned community project comprises of various land uses such as residential, commercial, educational, urban farming, leisure, healthcare, equestrian and a Center of Excellence. g is a first among many more such projects to come. Now that we have the technology and project implementation know-how, we could leverage our knowledge and expertise to partner with any competent investors to develop such projects elsewhere. We are in talks with investors and authorities to extend our expertise in sustainable development to other countries, including Saudi Arabia, Tunisia and Egypt – now that we are in an advanced stage of creating a good example which is going to be a reality. g Gulf Property
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GOGREEN “DEWA ranks the 4th best global power supplier in providing uninterrupted power supply to customers, according to the latest World Bank report...”
– Saeed Al Tayer Managing Director and CEO Dubai Water and Electricity Authority
Saeed Mohammed Al Tayer, Managing Director and Chief Executive Officer of Dubai Electricity and Water Authority (DEWA)
DEWA to invest Dh60b in utilities by 2020 34
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GOGREEN
Financial Results, 2014
Saeed Mohammed Al Tayer, Managing Director and Chief Executive Officer of Dubai Electricity and Water Authority (DEWA) explains the development of the Mohammed Bin Rashid Al Maktoum Solar Park to His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, flanked by other key officials including Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai and Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman and Chief Executive of Emirates Airline and Group and Chairman of Dubai Supreme Council of Energy
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Gulf Property Exclusive
tate-owned utility, Dubai Electricity and Water Authority will invest Dh60 billion in power and utilities to boost its power generation capacity to meet the growing demand, a top official said. Saeed Mohammed Al Tayer, Managing Director and Chief Executive Officer of Dubai Electricity and Water Authority (DEWA), said that his utility will not develop nuclear power plant, although it will develop a better mix of energy source to power its electricity generation and desalination plants. “DEWA ranks the 4th best global power and utility supplier in providing uninterrupted power supply to
customers, according to the latest World Bank report,” Al Tayer told Gulf Property on the sidelines of an event organised to release the second Sustainability Report 2014 and DEWA’s 2021 Strategy recently. “As peak demand grows due to the growth in Dubai economy, we see the need to invest Dh60 billion in power and utilities up to 2020 in Dubai – bulk of which will be invested by DEWA with a portion might come from the private sector.” This investment will include expansion projects aimed at enhancing DEWA’s power generation capacity by 20 per cent to meet the ongoing demand in Dubai of customers and development projects in all economic and social sectors, particularly ahead of hosting the mega event Expo 2020,
“We also seek to expand the production capacity of our M Station – the UAE’s largest power and water desalination plant from 2,060 MW of electricity to 2,700 MW by 2018,” Al Tayer said. “While Dewa currently has a large reserve of electricity and water, the expansion plan aims to promote sustainable development across the emirate.” Many of these projects will be executed through a private-public partnership, Al Tayer said, adding that by 2030, Dubai will need 20,000 MW power supply capacity and his organisation is gearing up to reduce dependence on fossil fuels as a source of energy. “Our vision is to generate 15 per cent of our power from solar and renewable energy, 7 per cent from clean coal and 7 per cent from nu-
ubai Electricity and Water Authority (DEWA) 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. It 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 attibutable to Dubai Government is Dh5.36 billion. It’s total revenues stood at Dh18.51 billion (US$5.1 billion) while operational revenues reached at Dh17.8 billion. DEWA’s total expenditures including cost of sales, administrative expenses and depreciation stood at Dh9.78 billion while net finance expenses crossed Dh1.14 billion (US$300 million). Expenditures on employees salaries stood at Dh1.56 billion while employee benefits crossed Dh503 million. g
clear energy,” he said. “However, we do not intend to build nuclear power plant, rather source them from nuclear power plants in the region.” Abu Dhabi Government is building four nuclear power plants that are expected to produce clean power progressively from 2017 onwards. To meet its nuclear energy target, as part of its energy diversification strategy, DEWA has initiated negotiations and dialogue with Gulf Property
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Saeed Mohammed Al Tayer, Managing Director and Chief Executive Officer of Dubai Electricity and Water Authority (DEWA), delivering a keynote speech at a conference held recently in Dubai
regards to nuclear power import from Barakah Nuclear Plan in Abu Dhabi. Currently DEWA runs a number of power plants that use gas and oil to power the plants to generate electricity and desalinate sea water for household and industrial use across the emirate. Al Tayer said that in the fast moving energy and water sector, the ability to innovate is critical for preparing Dewa and Dubai for the future. “The theme of our strategy — ‘Strategic innovation’ — will keep us focused on finding appropriate solutions to the current and future chal-
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lenges facing our business,” he said. Under Vision 2021, the UAE is on a fast track to develop a knowledge-based economy, investing in its human capital and the potential to develop a competitive advantage in specific sectors. By 2021, the UAE’s ambition is to have the knowledge sector contributing up to five per cent of the country’s gross domestic product (GDP).
Solar Energy
DEWA in April announced the third phase of Mo-
hammed Bin Rashid Al Maktoum Solar Park that will raise its power generation capacity to 800 MW from 200 MW in Phase II. DEWA had earlier doubled the capacity of phase two of the Solar Park from 100 to 200MW. The consortium led by Saudi Arabia’s ACWA and Spain’s TSK was selected to implement the 200MW second phase of the Solar Park, which will be operational by 2017. The project, which is based on the Independent Power Producer (IPP) model, is another achievement that will put Dubai and the UAE at the
forefront of the countries in the region in producing renewable and clean energy. The project’s tender is expected to be released in Q3 of 2015. “After getting the lowest global cost of production of photovoltaic (PV) energy for the second phase of the Mohammed bin Rashid Al Maktoum Solar Park, and doubling its capacity from 100 to 200 megawatts, we are pleased to announce the third project with a capacity of 800 megawatts. @We are on the right track to achieve the Solar Park’s total capacity of 3,000
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At A Glance
Dh18.5 billion total revenues of Dubai Electricity and Water Authority (DEWA) in 2014
Dh17.8 billion operational revenues of DEWA in 2014
Dh5.48 billion profits of DEWA after tax, debts, depreciation and interest in 2014
Dh5.36 billion
DEWA’s profits attributable
to its shareholder Dubai Government in 2014
Dh3.61 billion total capital expenditure of DEWA in 2014
Dh9.78 billion
total administrative expenses of DEWA in 2014
megawatts,” said Al Tayer. Al Tayer said that DEWA has allocated Dh150 million to develop a research, development and innovation centre inside the Solar Park. This centre, dedicated to scaling renewable-energy technologies and energy efficiency practices, is set to open in 2017, and will also serve as an academy for renewable energy, he added.
Clean Coal Energy
DEWA is currently under the tendering and evaluating
process to construct a clean coal power plant at Hassyan by 2030, according to the Sustainability Report. “We are working on with our independent power producer (IPP) partners to ensure that Hassyan follows European Union standards for clean coal, which are the most stringent standards worldwide in terms of emission levels. “With regards to waste management, we plan to implement the best practices available,” it says. State-owned DEWA is the exclusive provider of electricity and water services in
Dubai. Formed in 1992 following the merger of the Dubai Electricity Company and the Dubai Water Department which had been operational independently since 1959, it serves a large customer base across the emirate including 677,751 with electricity and 604,754 customers with water. The utility has a power generation capacity of 9,656 megawatts (MW) and 470 million imperial gallons of water per day (MIGD). DEWA has 10,241 employees that are engaged in power generation, transmission and distribution.
Dh1.56 billion DEWA’s employee salary bills in 2014
Dh1.14 billion net finance expenses of DEWA in 2014
9,566 MW
DEWA’s power generation capacity in 2014
470 MIGD
DEWA’s water desalination capacity in 2014
20,000 MW
DEWA’s power generation capacity expected in 2030 Gulf Property
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Operational Efficiency
DEWA has become a more sustainable organisation in terms of improving operational efficiencies. It has achieved 3.26 per cent electricity line losses, compared with 6-7 per cent average in the European Union and the United States. Its cumulative efficiency improved by 28.36 per cent between 2006 and 2014 that is equivalent to 27 million tonnes of carbon emission reduction. “Our 2021 strategy is to re-
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duce waste further and improve operational efficiency. We have a carbon emission reduction target of 8 per cent, under the new strategic plan that we have announced,” he said. The strategy is in line with the UAE Vision 2021, and Dubai Plan 2021, to set a roadmap of ambitious initiatives and developmental projects for economic growth, energy sustainability and a clean environment, he said. Its water network’s losses in 2013 was 10.4 per cent compared to 15 per cent in North America. DEWA Strategy 2021 em-
phasises the need to continue these efforts to take Dubai to the next level on its journey to celebrate the Union’s Golden Jubilee in seven years, he added. "This strategy will serve as a reference point during the strategic planning process that supports DEWA’s operational planning. This comprehensive strategy defines our strategic objectives and our relationship with our stakeholders and partners. We have also developed the map for research and innovation, which will enhance our journey towards achieving more success and excel-
lence," he added.
Renewable Energy
DEWA has already commissioned the Mohammed bin Rashid Al Maktoum Solar Park that is generating 13MW through its first phase. The second phase with a capacity of 100MW is underway. Mohammed Bin Rashid Solar Park has a design-built capacity to generate 1,000 MW power when complete. The aim is to expand it to 3,000 MW by 2030. “In 2014, DEWA’s efforts to
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GOGREEN “Our vision is to generate 15 per cent of our power from solar and renewable energy, 7 per cent from clean coal and 7 per cent from nuclear energy...”
– Saeed Al Tayer Managing Director and CEO Dubai Water and Electricity Authority
diversify into solar power continued with the tender for the second phase of the Mohammed Bin Rashid Al Maktoum Solar Park for a 100 MW plant, which has since been expanded to a 200 MW plant,” Al Tayer said. Drawing on public-private partnerships, DEWA is developing the Hassyan 1 Clean Coal project. The first phase of the project will have a production capacity of 1,200 MW and is expected to be commissioned by 2020. DEWA also seeks to reduce the demand for water and energy by 30 per cent by 2030.
Smart Dubai Initiative
As part of the Smart Dubai Initiative aimed at transforming Dubai into the smartest city in the world in three years, DEWA has launched three programmes to drive sustainable development in the emirate. The first initiative includes connecting solar energy to houses and buildings by encouraging households and building owners to install photovoltaic (PV) solar panels to generate electricity. The PV solar system will
be connected to DEWA’s grid. Electricity produced will be consumed within the premises and the surplus will be exported to the network. This encourages the use of renewable energy and increases its share in the energy mix in line with the Green Economy for Sustainable Development initiative and the National Agenda announced by Dubai Government. The second initiative involves smart applications and home. Through smart meters and grids, DEWA will provide various benefits and new applications to its cus-
tomers, including automatic and detailed readings (both current and historical). The data obtained through these readings will be available to customers to monitor actual consumption for a specific period of time to better understand and manage bills. Additionally, such data will enable comparisons to be made with average norms. These smart meters will support renewable sources of energy in residential, commercial and industrial sectors by comparing energy supplies from consumption and generation sides. The third initiative involves infrastructure and electrical vehicles charging stations. This project includes establishing charging stations for electric vehicles in various areas of Dubai and to enhance grid efficiency. DEWA is installing and managing both the infrastructure and the operation of electric vehicles in order to decrease air pollution and protect the environment against the impact caused by transport sectors in the emirate. g Gulf Property
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NEWPROJECT
MAG launches Dh700m affordable homes
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By Indrajit Sen Staff Reporter
AG 5 Property Development, a real estate company formed jointly by MAG Property Development (the real estate arm of UAEbased business conglomerate Moafaq Al Gaddah Group) and MBM Holding, has recently launched a Dh700 million affordable housing project at the Dubai World Central (DWC) in Jebel Ali, Dubai, as revealed by Gulf Property last month. Previously in an exclusive interview, Moafaq Al Gaddah, Chairman of MAG Group, had told Gulf Property that he plans to roll out Dh10 billion worth of projects by 2020, mostly to cater to
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Dubai’s rapidly rising need for affordable housing. At the sales launch of the MAG 5 Boulevard project Gaddah said the response had been ‘very positive’. “We had been inviting people to attend the pre-sales launch and the response has been good. We have received a steady stream of customers and enquiries,” he said. Major developers in Dubai, the likes of Dubai Properties, Nshama and Danube, have already jumped into the affordable housing bandwagon, as there is much to be gained from this surging demand. To address the gap in budget properties Dubai Municipality recently announced it was contemplating making mandatory for developers to dedicate 15 to 20 per cent of their projects for affordable housing.
Construction of the MAG 5 Boulevard – a freehold project – would start in the fourth quarter of 2015. The project would be delivered in phases, with the first phase expected to be handed over in the first quarter of 2018 and the entire project by end of 2018. The MAG 5 Boulevard project is spread over 800,000 square feet and comprises 13 buildings, all of which are low-rise G+6 structures. Put together, the development is offering 1,118 apartments, with over 600 one-bedroom and over 300 two-bedroom units included. “If you study the mid-income affordable housing segment in Dubai, that is what people are looking for,” Tariq Bsharat, Executive Director of Strategy and Operations, MAG Property Development told Gulf Property.
While the average size of a studio apartment would be around 500 square feet, the one-bedrooms would be around 650 square feet. Although there are no villas in the project, the three-bedroom apartments, Bsharat says, are ‘garden apartments’, with two entrances, a private garden and a maid’s room with separate entrance. With regards to the pricing structure, the studios start at Dh449,000, the one-bedroom apartments at Dh549,000 and the two-bedrooms at Dh799,000. The three-bedrooms, it was said, would start at around Dh1.4 million.
Payment Plan
Like most other developers in Dubai, MAG Property Development too has launched an attractive payment plan
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for the project; a scheme which Bsharat believes ‘lessens the need for the buyer to seek mortgage from a bank’. He explains: “We have our own payment plan spanning 5-year payment and we are not charging any interest. For example, for an averagepriced studio you are looking at paying Dh6,200 per month and you get to own the apartment in 60 months. There is a deposit of 30 per cent that comes in the first 8 months, but after that you just have to pay your monthly installments.” The developer declined to name the contractors for this project saying only that the process of appointing a contractor is ‘in the tendering phase and we have eight to 10 bids. Al Jabal Consultancy and Engineering and e construct are the architects for this project, Bsharat said.
Dubai World Central
The management of Dubai World Central, the Dh110 billion aerotropolis sprawled over 145 square kilometres, has laid special emphasis on
At A Glance
Dh700 million value of MAG 5 Boulevard
1,118
number of apartments are on offer for freehold sale
Dh449,000
price of a studio at MAG 5 Boulevard project
developing its Residential District which has a design capacity for 1,100 low- to mid-rise buildings. “The 6.6 square kilometre district will offer a balanced mix of properties and host a well-organised, attractive community environment with all supporting utilities and infrastructure,” Rashed Bu Qara’a, Chief Operating Officer of Dubai Aviation City Corporation — developer of the DWC, told Gulf Property in an exclusive interview. “All of our efforts are aligned with ‘Dubai Plan 2021’ as we seek to develop DWC into a preferred desti-
nation to live and work”, he had said. MAG 5 PD’s project however can be considered as the first project in DWC in the affordable segment. “I think this is going to be the new centre of Dubai. I think that is because of the new Al Maktoum International Airport and the Expo 2020 site. As a developer, we have to envision what DWC will look like in 5 years and what project will fit that vision. And MAG 5 Boulevard is that type of a project. Our partners at DWC have been very helpful and supportive,” Bsharat commented. Situated in close proximity to schools, offices and hospitals and next to ‘The Green Belt’, residents at MAG 5 Boulevard will have access to the dining, shopping, leisure and entertainment offerings. The developer has also promised that all of MAG 5 Boulevard’s apartments will feature balconies and parking spaces. By 2020, DWC is projected to become a self-sustained urban ecosystem where thousands of professionals and their families will live and work. Currently, it is home to
10,000 people, who commute daily to DWC from various parts of the UAE. With viable housing projects such as MAG 5 Boulevard and others on the retail, healthcare and education fronts, DWC is laying the foundation of what will become a vibrant and robust community. Asked about how successful the project will be and how MAG Property Development plans to compete with other Dubai developers operating in the budget housing sector, Bsharat says, “This is the first thing that MAG has sorted out; which is if you target affordable projects and end-users, then you have to showcase something different. The days when you just sold (properties) through a brochure are over. Most of the people we have been talking to for this project are individuals looking at buying for the first time or families with kids. “They are looking at a 1 or 2 bedroom apartment. And their questions are different; they are asking about the finishing, the views, interior layout and of course the payment. This is where it is different.” g Gulf Property
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Dh10.5bn Dubai Parks & Resorts on track By Indrajit Sen Senior Reporter
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ubai Parks and Resorts (DPR) – the Dh10.5 billion themed entertainment project by state-owned Meraas Holding that is to spread across 25 million square feet is on course for opening in October 2016, officials said at a recent media briefing. Construction of the project – located near Jebel Ali in Dubai – is about 20 per cent complete, senior officials
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from said. “The value of the entire development is Dh10.5 billion (US$2.9 billion),” Paul La France, Chief Projects Officer, Dubai Parks and Resorts PJSC, told Gulf Property. “No more finances are needed. All financials are in place,” he said, when asked about the funding and financial status of the project. The company expects a revenue of Dh2.4 billion for 2017. It has completed 42 per cent of the project infrastructure. Construction on the site off Sheikh Zayed Road
started in February last year. It will get its own electrical substation at the site in July and district cooling in September. Dubai Parks forecasts revenue of Dh2.4 billion in its first full year of operation. This includes ticketed entries, merchandise sales and food and beverage sales. It also expects to employ 5,000 people. Among its ride manufacturers are the German designers Mack Rides, the Dutch company ETF Rides Systems, UK-based Simworx, Italy’s Zamperla,
Canada’s Dynamic Structures working on a flying theatre, and Gerstlauer from Germany. The ride vendors are managed through Hill International. Dubai Park and Resorts PJSC, the development company, was originally part of Meraas Holding and listed on the Dubai Financial Market on December 10, 2014. “About 60 per cent of our 6.3 billion shares are currently held by Meraas and 40 per cent by public shareholders,” the company says on its website. The Dh2.5 billion Initial
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Public Offering (IPO) has helped Meraas bag the crucial funding needed to start building the project. An array of local, regional and international contracting firms, architects, suppliers and service providers have been hired to develop various features of the project. The major contractors working on the project include, ARCO General Contracting, Orascom, Besix, Kier and Qatar Tech Contracting. Commuting to the massive development off Sheikh Zayed Road can be inconvenient and the developer
seemed to be aware of the fact. There had been word that an access road connecting Dubai Parks and Resorts directly to Sheikh Zayed Road was being planned. La France confirmed the report saying that a tender for building such a road has been floated and the developer had even started receiving bids. The value of the contract, he revealed, was Dh200 million and that the tender had been floated through Dubai’s Roads and Transport Authority (RTA). “The contract will be awarded in two to three
weeks’ time (in June),” he said. Rides have started arriving, mainly from Europe, and almost 800 workers are engaged in building the five main components of the Dubai Parks and Resorts, namely, Motiongate, Bollywood Park, Legoland, Lapita Hotel and Riverland. Apart from the main theme parks and attractions, the developer has also invested significantly on hard and soft infrastructure such as district cooling and air conditioning, telecom and Wi-Fi connectivity from Etisalat, parking
spaces and open tram pickup services, as well as security systems, first aid and emergency medical services. Green building and sustainable practices are being adhered to in the construction of the project, the management claims. The external façade of the development itself accounts for 7 per cent of the entire development value, La France said. Dubai Parks and Resorts is expected to be a considerable employment generator. The company currently emGulf Property
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ploys about 4,000 staff. Besides the company says it has permissions to hire both Emirati and foreign staff. It says it has taken an initiative to employ students on both internship and permanent basis, and offer them management degrees on theme park management.
Theme Parks & Attractions
Motiongate, the Hollywoodthemed entertainment arena, is sprawled over 4 million square feet.
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The complex – which La France describes as ‘Hollywood in the desert’ – will consist of 27 rides and 5 ‘themed zones’, namely ‘Studio Central’, ‘Sony Pictures Studios’, ‘Smurfs Village’, ‘Dreamworks’ and ‘Lionsgate’. Besides, there will also be a ‘Motiongate Theater’ that will offer live dance shows. With Bollywood Park – the three million square feet project – the developer wants to create a ‘mini India in Dubai’. The park would consist of 16 rides and 5 themed zones namely ‘Bol-
lywood Boulevard’, ‘Mumbai Chowk’, ‘Rustic Ravine’, ‘Bollywood Film Studios and HalL of Heroes’ and ‘Regal Plaza’. Moreover, Indian entertainment company Wizcraft has been appointed to provide musical performances, similar to the popular shows the company offers at the ‘Kingdom of Dreams’ theme park near Delhi. Construction of both Motiongate and Bollywood Park is about 30 per cent complete, officials at DPR says. Catering to kids between 2 to 12 years of age, Legoland
is poised to be an essential component of Dubai Parks and Resorts. Construction of the Dh120 million project – which includes features such as water park, 15,000 Lego models, 40 rides – is also 45 per cent complete, the media was told. A Lego hotel has also been planned within the complex. A central artificially-created river will flow through the Dubai Parks and Resorts and on the banks of it will be located a retail precinct cum dining area named ‘Riverland’. Vinit Shah, Chief Destina-
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GULFTOURISM wood offering that the developer is banking on to pull crowds. “Hollywood-themed Motiongate is obviously the biggest, but I think Bollywood is the one that is going to be most popular,” La France commented. “It is going to be very rich and entertaining.”
Future Expansion
tion Management Officer, said Riverland will offer 220,000 square feet of leasable space, bids for which have already started coming in from local and foreign retailers. The zone has been themed on a medieval French village, colonial European architecture, retro and urban America and Indian royalty. There will also be live entertainment performances on the street. Global hospitality brand Marriott Group will be operating a hotel within Dubai Parks and Resorts named ‘Lapita – Autograph Collection’, which will consist of 500 rooms and 3 villas.
Annual Tourists to Cross 6.7 m
Although much of the construction site still appeared to be barren land, being baked by the sun, Dubai Parks and Resorts expects to welcome guests from October 2016, a year and three months from now. Asked about how the development company hopes to achieve such a feat, La
“It would take around 7 hours to visit one theme park, and about two to three days to cover the entire Dubai Parks and Resorts...”
– Brian Machamer Senior Director of Theme Park Dubai Parks and Resorts
France said, “You know all contractors have a delivery date. Besides we have construction works happening year-round.” Senior officials said they expect about 6.7 million people to visit the Dubai Parks and Resorts annually, of which five and a half million would be ‘unique visitors’.
Quite naturally the footfalls are going to drop during the summer months, to as low as 6 per cent of the annual figure, Brian Machamer, Senior Director of Theme Park Operations, said. Attendance is expected to peak between October and March. “It would take around 7 hours to visit one theme park, and about two to three days to cover the entire DPR,” Machamer said. Ticket prices have not been decided upon yet and will be aligned as per international rates ‘as we approach the opening date’, he stated. The official also said that foreign visitors are expected to make up 75 per cent of the total annual footfall, while locals would account for 25 per cent. Apart from the UAE and regional residents, visitors from countries such as India, China, UK, US and Russia, would mostly dominate the foreign footfalls, he said. Motiongate has an annual visitor handling capacity of 3 million, while Bollywood Park and Legoland have capacities of 1.9 million and 1.7 million respectively. However, it is the Bolly-
Machamer told this magazine that Dubai Parks and Resorts has a 5 year capital expenditure strategy. “Depending on the success of the park we will look at expansions, say around 2018. Presently, you don’t want to overbuild the park,” he revealed. La France views Abu Dhabi’s Ferrari World as one of the competitors to Dubai Parks and Resorts. However, he also says that DPR’s location between Dubai and Abu Dhabi offers it an advantage. “For us the location is perfect. It is accessible from Sheikh Zayed Road. The DPR is 18 minutes from Dubai Marina. The centre of Dubai is moving southward, you see,” La France says. La France also said that Dubai Parks and Resorts will already be up and running before the EXPO 2020 and the project will heavily gain from the tourism inflow in Dubai. The Dubai Government is targeting around 20 million visitors by 2020. DPR’s proximity to Dubai World Central and Al Maktoum International Airport will also give it a great boost, he believes. “I personally can’t wait to open the gates of Dubai Parks and Resorts,” Raed Al Nuaimi, Chief Executive Officer of Dubai Parks and Resorts, said. Gulf Property
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Auris to open 15 new hotels across MENA
Atana Hotel by Auris – the 850 room hotel is set to open this summer at the Tecom Area in Al Barsha. Auris Group of Hotels is hiring 550 professionals to manage the new business hotel
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uris Group of Hotels, UAE’s home-grown hospitality brand, recently announced the opening of 15 new hotels and hotel apartments with more than 3,000 keys by 2017. With the new hotel operations, the company will create employment for 2,000 hotel professionals to manage these large inventory of new hotel rooms and serviced apartments. Auris Group of Hotels, which has a portfolio of five properties including a fivestar hotel, a three-star hotel and three serviced apartment complexes with 807 keys managed by 390 professionals, is in the process of employing 775 hospitality professionals this year to manage its four new hotels due to open in 2015. The Dubai-based hospitality chain made the announcement ahead of the Arabian Travel Market, the Middle East’s largest travel and tourism exhibition that takes place from May 4-7 at the Dubai World Trade Centre. “The new hotels join our existing portfolio of five hotels – taking the total number of hotels to 20 with 3,000 keys in the UAE, Saudi Arabia Oman and Turkey and marks a new beginning in our ambitious journey to become a regional hospitality brand,” Hatem Gasmi, Managing Director of Auris Group of Hotels, says. “The new hotels will help reduce the pressure on the existing hotel inventory and widen visitors’ choice of accommodation and experience as our hotels combine the warmth of traditional Arabian hospitality with the professionalism and efficiency of the Western hospitality to create a nice fusion and better mix for tourists.” Among the new hotels, Auris Fakhruddin Hotel Apartments at Dubai Sports
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Auris Group Pipeline
uris Group of Hotels – a UAE homegrown hotel operator – has 15 properties in the pipeline for opening in the next three years, including four new hotels scheduled for opening this year. Following is a list of the new hotels that will be opened in the coming years. The company is expected to sign up more hotels before the World Expo 2020 when Dubai will need to double its room inventory to nearly 160,000 rooms to be able to accommodate 20 million guests per year. By 2020, Auris is expected to become a regional mid-size hotel chain with multiple branding under one roof. New Hotels to Open in the UAE Auris Fakhruddin Hotel Apartments Location : Dubai Sports City Type : Deluxe hotel apartment No of Units : 304 apartments Opening : Mid 2015 Current Status : Pre-opening Employment : 100 people
Auris Inn Al Muhanna Hotel Location : Tecom, Dubai Type : Four-star business hotel No of Units : 145 rooms and suites Opening : End 2015 Current Status : Interiors fit-outs Employment : 75 people Atana Hotel by Auris Location : Tecom, Dubai Type : Luxury business hotel No of Units : 850 Opening : Mid 2015 Current Status : Interiors fit-outs Employment : 550 people
The Village Hotel Apartments by Auris Location : Tecom Dubai Type : Deluxe hotel apartment No of Units : 200 apartment, suites and duplexes Opening : 2015 Current Status : Interiors fit-outs Employment : 50
Auris Inn Assma Hotel Location : Al Barsha, Dubai Type : Four-star business hotel No of Units : 232 rooms and suites Current Status : Under constructions Auris Deira Island Hotel Location : Deira Island Type : Luxury hotel
No of Units Current Status
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: 180 rooms and suites : Under construction
Auris Plaza Beach Resort – Ras Al Khaimah, UAE Location : Ras Al Khaimah Type : Five-star resort No of Units : 180 rooms and suites Current Status : Under construction Auris Lodge Al Furjan, Dubai Location : Al Furjan, Dubai Type : Three Star Hotel No of Units : 250 rooms and suites Current Status : Under construction Saudi Arabia Auris Lodge Al Azizia – Jeddah Location : Jeddah Type : Three star hotel No of Units : 70 rooms and suites Current Status : Under construction
Auris Lodge Suites – Jeddah Location : Jeddah Type : 3-star boutique hotel No of Units : 70 rooms and suites Current Status : Under construction
Auris Plaza Hotel – Riyadh Location : Riyadh, Saudi Arabia Type : Five-star luxury hotel No of Units : 278 rooms and suites Current Status : Under construction Oman Auris Lodge – Sohar, Oman Location : Sohar, Oman Type : 3-star hotel No of Units : 77 rooms and suites Current Status : Interiors fit-outs
Auris Resort Nizwa, Oman Location : Nizwa, Oman Type : 5-star hotel and resorts Current Status : Under construction Turkey Location Type No of Units Current Status
: Istanbul : Luxury hotel apartments : 142 rooms and suites : Under construction
Sudan Auris Lodge – Al Khatoum, Sudan Location : Sudan Type : 3-star boutique hotel No of Units : 115 rooms and suites Current Status : Under construction g Gulf Property
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GULFTOURISM Hatem Gasmi, Managing Director of Auris Group of Hotels. at his office. He is spearheading the group’s expansion across the Middle East and Europe
City will add 304 apartments to be managed by a team of 100 professionals. The hotel, scheduled to open this summer, is currently undergoing trial period. Atana Hotel by Auris, which opens door in mid 2015, will have 850 guestrooms split in two towers connected by a podium, is in the process of recruiting 550 employees ahead of its scheduled opening in the next few months. It will be located at the Tecom area of Dubai. Auris Inn Al Muhanna Hotel, a business hotel that will host 145 rooms, is scheduled to open before the end of 2015, while the Village Hotel Apartments that will host 200 deluxe serviced apartments in Tecom Area, is also slated for opening soon. The UAE tourism industry will continue to expand in 2015, with 7.6 per cent yearon-year growth in tourist arrivals and 9.3 per cent increase in tourism receipts, according to a report by Business Monitor International (BMI). The report predicted that total tourism receipts would cross the US$20 billion mark in 2015. Inbound tourists will reach 16.47 million and outbound travellers are also expected to reach 2.64 million
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this year. The hotel and restaurant industry is also forecast to grow by 16.65 per cent to reach US$10.84 billion. However, Dubai is expected to host 20 million guests a year by 2020 — that requires the emirate to double its existing hotel inventory of 84,000 guest rooms and serviced apartments. “Auris Group of Hotels’ expansion will help Dubai manage such a large number of tourists and offer varied accommodation choices in the city,” Gasmi, a seasoned hospitality professional,
says. “As a UAE home-grown hotel chain, we are proud to play our part in developing the tourism industry and also contributing in its growth.” Founded in Dubai in 2008, the hospitality chain employs 465 professionals in the UAE and Saudi Arabia and has experienced consistent strategic growth within the Middle East and North Africa region. Auris is a Latin word, meaning ear and shares the same root as the word aurum which means gold. The golden rule of hospitality is to ensure that the expectations
of guests, partners and associates are met within the highest standards of professionalism and integrity. With five operating hotels in the UAE and Saudi Arabia and about a dozen new in the pipeline, Auris aspires to become a major global hospitality chain in the luxury, business and budget hotel segments to serve the growing needs of tourists worldwide. The company has also mapped out hotel projects in Jordan, Qatar, Sudan, Tunisia and France in line with its vision to be present in 15 countries in 2020. g
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Auris Group Portfolio
ith five operating hotels in the UAE and Saudi Arabia and about a dozen new in the pipeline, Auris aspires to become a major global hospitality chain in the luxury, business and budget hotel segments to serve the growing needs of tourists worldwide
Operating Hotels – UAE Auris Plaza Hotel – Al Barsha Location : Al Barsha, Near Mall of the Emirates Type : Five-star luxury hotel No of Units : 337 rooms Employment : 250 people The Five-Star Luxury hotel is located in Al Barsha Dubai, right next to the Mall of the Emirates and conveniently midway between Dubai Marina and Downtown Dubai offering easy access throughout the Emirate. The Plaza is only 25 minutes away from Dubai International Airport, 20 minutes from the new Al Maktoum International Airport and a few minutes’ walk from the nearby metro stations. Auris Plaza offers 337 executively decorated rooms and suites fully equipped with high speed internet and a media hub allowing you to connect your digital communication devices to the in-room interactive TV system. With a variety of dining venues, lounges, a luxury leisure club and a 300pax conference facility; the hotel is your ultimate choice in Dubai.
Auris Boutique Hotel Apts – Al Barsha Location : Sheikh Zayed Road Type : Deluxe hotel suites No of Units : 60 Apartments Employment : 40 people Primly located off Sheikh Zayed Road, right next to the Mall of the Emirates and metro station, the hotel offers a charming view of Burj Al Arab, Madinat Jumeirah, and Wild Wadi Water Park. It offers executively decorated one and two bedroom suites with a fully equipped kitchen, high speed internet, LCD screens and perfect lighting.
Auris Metro Central Hotel Apartments Location : Tecom (Near Metro) Type : Hotel apartments No of Units : 210 apartments & suites Employment : 50 people Auris Metro Central Hotel Apartments is located off Sheikh Zayed Road in Tecom area, right at the centre of Dubai’s new business district with an amazing 360 degrees view of
Dubai from the 17th floor pool area. Situated next to Dubai Internet City Metro Station, the hotel is less than five minutes from Dubai Media City and only 30 minutes’ drive from Dubai International Airport and the new Al Maktoum Airport. Metro Central offers 210 contemporary and beautifully designed apartments with LCD screens in the bedroom and living area, 50 satellite TV channels, High speed wireless internet, safety deposit box and a fully equipped kitchen. The hotel also houses a modern fitness center, a rooftop swimming pool and healthy restaurants.
Auris Hotel Apartments Deira Location : Al Riqqa, Deira (Metro) Type : Hotel apartment No of Units : 140 apartments Employment : 50 people Auris Hotel Apartments Deira is located in the heart of Dubai’s commercial district and only 15 minutes’ drive from Dubai International Airport and 45 minutes from the new Al Maktoum International airport. The 140 executive units are right next to Al Rigga Metro station offering easy transit around Dubai and a few minutes to major highways that connect the city to the neighbouring Emirates. Deira offers a range of attractions including the famous Gold Souq, Dubai Creek, Palm Deira, several shopping malls, fun spots and government Centre’s. The hotel also houses a rooftop swimming pool, gym and each suite is well spaced and comes with a fully equipped kitchenette, wireless and wired internet, satellite TV and perfect lighting. You can enjoy a healthy bite at the Manino Deli Café during your stay. Operating Hotels – Saudi Arabia Auris Al Fanar – Jeddah, KSA Location : Hira Street, Jeddah Type : Three-star hotel No of Units : 60 deluxe rooms and suites Employment : 75 people The hotel is conveniently located in the city, just a 25-minute drive from King Abdul Aziz Airport making it easily accessible by bus or taxi. Among the nearby attractions are the beautiful Silver Sand beaches of the Red Sea just a kilometre away and in the wider Jeddah City you will find the world famous King's Fountain, Balad souq area, the floating mosque and the historic Makkah Gate among other amazing places. Whether visiting for holiday or business, Auris Al Fanar remains your ultimate choice in Jeddah. g
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Auris Group of Hotels
uris Group of Hotels, UAE’s homegrown hotel brand, has a portfolio of five properties including a five-star hotel, a three-star hotel and three serviced apartment complexes with 807 keys. Founded in Dubai in 2008, the hospitality chain employs 465 professionals in the UAE and Saudi Arabia and has experienced consistent strategic growth within the Middle East and North Africa region. Auris is a Latin word, meaning ear and shares the same root as the word aurum which means gold. The golden rule of hospitality is to ensure that the expectations of guests, partners and associates are met within the highest standards of professionalism and integrity. With five operating hotels in the UAE and Saudi Arabia and about a dozen new in the pipeline, Auris aspires to become a major global hospitality chain in the luxury, business and budget hotel segments to serve the growing needs of tourists worldwide. The company has also mapped out hotel projects in Jordan, Qatar, Sudan, Tunisia and France in line with its vision to be present in 15 countries in 2020. g Gulf Property
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Rent increases & price declines in Abu Dhabi
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Gulf Property Exclusive bu Dhabi residential rents rose on average 4 per cent over the first three months of 2015, and are likely to continue to rise further this year because of a drop in new supply in the UAE capital, according to the latest ADIB Real Estate report. “Only 750 new homes were delivered to the market in the first quarter, with another 5,800 expected to be completed in the remainder of this year. At 2.9 per cent
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of total housing stock, this represents the lowest level of new residential supply for five years, when average annual growth has been around 5 per cent,” the report said. According to Jones Lang LaSalle (JLL), a global real estate advisory, the first quarter of 2015 recorded further growth in the residential rental and hospitality sectors while the residential sales, retail and office sectors remained stable. Following the decline in oil prices, JLL said it expects there to be a reduction in government spending this year which will slow down the pace of demand growth
– growth is expected to continue, but at a lower rate. On the other hand, the shortterm supply picture is also relatively under control leading to generally stable market conditions, it said. David Dudley, Regional Director and Head of Abu Dhabi Office at Jones Lang LaSalle, MENA, says: “In the first quarter of 2015, the Abu Dhabi real estate market experienced strong growth in the hospitality sector and further growth of residential rents balanced by further stabilization in the office, residential sales and retail sectors. In contrast to the downward pressure we saw for the hospitality market in
Dubai during the quarter, the Abu Dhabi hotel sector saw an increase in hotel ADRs for the first time since 2010 as demand outpaced supply expansion.” The growth in hospitality demand is largely driven by a range of ongoing government initiatives to grow tourism demand – including the expansion of Etihad Airways and the Airport, further enhancement of Abu Dhabi’s leisure offering, and campaigns by the Abu Dhabi Tourism and Culture Authority to promote Abu Dhabi regionally and globally. “Residential demand remains dominated by residents who are interested in
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renting, rather than buying property. Rental growth for prime residential units continued at 4 per cent during Q1, following 11 per cent growth in 2014 and 17 per cent in 2013, primarily due to limited quality supply across all price points and the removal of the rent cap. “While average prime rents increased, the residential sales market remained stable this quarter, following 25 per cent annual growth of prime residential prices over the past two years. The office market remained stable this past quarter, with demand remaining relatively flat and limited new supply entering the market.
“Overall vacancy rates for office space are expected to remain at this level throughout the year, given the significant proportion of near-term completions that are precommitted,” Dudley said. Year on year, average rents were seven per cent higher in the first quarter, says the ADIB Real Estate report. “What we are witnessing at the moment is that the lower oil price has temporarily dampened sentiment, but the market fundamentals remain strong,” said Paul Maisfield, CEO of MPM Properties, the real estate advisory subsidiary of Abu Dhabi Islamic Bank (ADIB). “Rents have risen because
of lower supply, and pent-up demand for high quality housing stock in the city means that sales are still healthy. A positive sign was Aldar’s ability to sell, in just one week, 281 villa plots at the Al Merief master-planned community in March. In addition, gross residential yields are now at 6 to 7 percent, which is attractive to investors.” However, while rents rose because of demand and supply dynamics, residential sales prices declined 4 percent quarter on quarter, and are down 10 percent to 13 percent from their peak in the third quarter of 2014. This fall was largely due to
weakening investor sentiment in the region related to a sharp drop in oil prices, according to the ADIB Real Estate report. Although no major deliveries took place during the first quarter of 2015, approximately 5,000 residential units are expected to enter the market by the end of 2015, dominated by the delivery of The Views (Saraya), Hydra Avenue and The Wave (Al Reem Island), C59 (Rawdhat) and Amwaj 2 (Al Raha Beach), said Jones Lang LaSalle.. Abu Dhabi’s sales prices for residential units (apartments and villas) have remained stable during Q1 at Gulf Property
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ABUDHABI
approximately Dh16,000 per square metres. Rents for prime 2-bedroom apartments continued to increase this quarter given the limited supply in the market registering a 4 per cent increase to reach approximately Dh 163,000 per annum. David Dudley says: “We expect there to be a reduction in government spending this year due to the recent decline in oil prices – which will slow down the annual demand growth rate. We expect this to be a slowdown in annual growth rather than the government putting the brakes on – employment creation and residential demand growth will continue to be sustained from projects com-
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menced while oil prices were high. “Given a current shortage of quality housing, we expect rental growth to continue, but at single-digit growth rates, rather than the double-digit rates we saw from 2013 to 2014. While the residential rental market is linked to the overall supply– demand balance, the sales market is driven more by sentiment and consequently is more sensitive to the decline in oil prices and equities!” After two years of 25 per cent annual growth, average prime residential prices have remained flat since Q4 2014 – principally due to the recent decline in oil prices, equities markets and investor
sentiment, he added.
Commercial Properties
In the office segment, the market is likely to remain relatively inactive this year, due to weaker demand from the government sector. However, a shortage of space contributed to a 3 per cent quarter-on-quarter rise in grade A rents, and a 6 percent rise in grade B rents. Total office space stock reached approximately 3.2 million square metres gross leasable area (GLA) in Q1, with the Finance House headquarters at Capital Centre adding approximately
25,000 square metres GLA, Jones Lang LaSalle says. An additional 359,000 square metres of office GLA is expected to be delivered throughout the year. Average Grade A and B office rents remained stable this quarter at Dh1,730 per square metres and Dh1,180 per square metres respectively. With limited completions during Q1, the market-wide vacancy rate remained at 25 per cent. The Minister of Economy announced that the UAE is at an advanced stage of drafting a foreign investment law allowing 100 per cent foreign ownership of companies operating outside free zones. “The new law is intended to support innovation and tech-
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ABUDHABI the end of 2015, the pace of supply additions is now slowing down the extensive government initiatives to boost tourism numbers continue strongly. Occupancy rates have been increasing over recent years, now reaching 77 per cent.”
Retail Sector
nology transfer through foreign direct investment in selected sectors. The extent to which the law will impact Abu Dhabi in the short term is yet to be determined,” Dudley says.
Hospitality
The Abu Dhabi hospitality sector saw a strong start to 2015, with tourist arrivals growing by 22 percent from a year earlier. Revenue per average room (RevPAR) for Abu Dhabi averaged Dh397 in the first quarter, compared to Dh867 in Dubai hotels. The tourism industry in Abu Dhabi is due to be boosted by the scheduled opening at
the end of this year of a new cruise terminal at Meena Port, which is expected to bring in 185,000 tourists per year. Despite the heavy competition in the market, available daily rates (ADR) levels increased for the first time since 2010 to reach approximately $169, reflecting an increase of 12 per cent in year-to-date February 2015, Jones Lang LaSalle said. Occupancy rates witnessed a far lower rate of growth, reaching 77 per cent in the first two months of 2015, just one percentage point higher than 2014. The combined growth of improved ADR levels and occupancy rates pushed the
RevPAR up by 14 per cent, to reach approximately $132. Two major openings occurred during Q1 – Tryp by Wyndham (146 keys) and the Swiss-Belhotel Corniche (189 keys). Additionally, 500 keys were added to the serviced apartments sector with the opening of the Meera Time Residence in Saraya and Danat Residences in Danet Abu Dhabi. Dudley commented: “Over recent years, while there has been a steady increase in tourism arrivals, the positive increase in demand was largely offset by new supply coming through, impacting on performance. While we expect an additional 3,000 rooms to enter the market by
Meanwhile, retail rents in Abu Dhabi increased 8.5 per cent on year, and 1.5 percent on quarter – this lagged Dubai’s rental growth of 17.8 percent from a year earlier. Abu Dhabi’s retail market remained largely stable during Q1. No major deliveries took place, keeping the total retail supply at 2.6 million square metres of retail GLA. About 87,000 square metres of retail GLA is expected to enter the market by the end of 2015, largely as non-mall retail within mixed-use developments. Average line store rents within well-located malls have remained stable at Dh3,000 per square metres per annum (Abu Dhabi Island) and Dh1,860 per square metres per annum. Retail growth has also remained stable, with no major supply completions in Q1 and limited completions scheduled for the rest of 2015 and 2016. Yas Mall, which has been well received by consumers and retailers, has completed its first full quarter of trading,” Dudley says. “A number of super regional malls are scheduled to enter the market from 2018 which will substantially increase Abu Dhabi’s retail supply in the medium term. The future outlook for retail is positive as consumer demand continues to increase from population, employment and tourism growth.” g Gulf Property
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Brookfield to build 500 homes at Masdar City
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Gulf Property Exclusive
lobal construction firm Brookfield Multiplex has been awarded a contract to build the first residential complex at Masdar City – Abu Dhabi’s pioneering, sustainable city – that involves 500 homes, a senior official told Gulf Property in an interview recently. “Bookfield Multiplex, which has built Masdar City headquarters complex, has been awarded a contract to build
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500 apartments, out of the 2,500 homes planned within Masdar City,” Sultan Al Ali, Head of Real Estate Development and Investment at Masdar City, told Gulf Property. “It’s a design built contract and expected to be completed in 2017.” Set up in 2006, Masdar City – the world’s first carbon neutral settlement – has a design capacity to host 50,000 residents and 40,000 working population at its business facilities. The move advances the city’s aim to be a leading hub of innovation where people live, work, learn and play.
Masdar applied its design expertise to ensure the residential complex of 500 units of one- and two-bedroom apartments constructed with verified sustainable materials meets LEED Gold and 3 Pearl Estidama sustainability criteria. The complex will have access to a gym, retail facilities and other amenities, as well as pedestrian-friendly walkways connected to the heart of Masdar City. Dr Ahmad Belhoul, Chief Executive Officer of Masdar, said: “The start of construction of this residential complex is an important step
forward toward completing the vision of Masdar City as a complete ecosystem focused on sustainability and innovation. Masdar City has adopted a holistic approach to sustainable development, built on knowledge and talent, home to leading research and development facilities, a free zone with world-class businesses, and soon a residential complex.” The new residents will become a part of Masdar City’s growing sustainable community, in addition to the nearly 500 graduate students now pursuing studies and living at Masdar Institute.
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Recently Masdar City also broke ground on mixed-use Chic Residence serviced apartments, with residential, retail and recreational facilities. The serviced apartments will expand the number of ways that visitors to Abu Dhabi can directly experience the Masdar City lifestyle. Masdar City Director Anthony Mallows said: “The Masdar City vision is attracting a host of new businesses and residents. Centrally located at the crossroads of the Middle East and Asian markets, this is the region’s only investment and free zone focused on innovation and sustainability. “Masdar City offers a high quality lifestyle with walkable, accessible neighbourhoods that blend residential, commercial, open and cultural space, and it is growing steadily.” Construction of the apartment complex will help meet
Abu Dhabi’s rising need for new residences. Abu Dhabi’s average annual population growth of 7.7 per cent has created a significant demand for housing in the emirate and currently outstrips supply.
Eco-Villa
Masdar City recently launched a new concept for sustainable villas that generate enough solar energy to power the homes yearround. The eco-villas are designed to accommodate future population growth and meet a growing demand for sustainable family homes. “With nearly eight million people expected to live in the UAE’s urban centres by 2020, this rising population increases the imperative to design high-quality sustainable homes that use fewer natural resources than existing homes,” said Dr Belhoul.
“Masdar City has pushed the boundaries of sustainable design since its launch, and now we are taking our knowledge to the next level with this vision of the 21st century single-family home. “The eco-villas are central to the City’s goals to meet the lifestyle needs of a growing urban population, while reducing these buildings’ consumption of water, energy and waste. “We have leveraged the experience we gained during the initial phase of Masdar City’s development with the construction and completion of Masdar Institute. We then continued to incorporate new best practices as the City expanded in recent years. This legacy of sustainable innovation is evident in these concept homes as we strengthen our commitment to the development of a world class community where people will want to live, learn, work and play,” Dr
Belhoul added. The four-bedroom villa concept includes an array of high-performance solar panels that will generate approximately 40,000 KWh per year. Careful orientation of the home, optimised natural lighting, a high-performance envelope as well as low-energy LED lighting and other design techniques will reduce the home’s annual energy demand to an estimated 39,000 KWh each year, slightly less energy than the panels are expected to generate. The eco-villa design would divert an estimated 63 tonnes of carbon dioxide emissions from the atmosphere while reducing demand on the national electrical grid. The homes are expected to use 35 per cent less water than standard villas, thanks to low-flow toilets, faucets and showers, and other innovative water conservation measures. g Gulf Property
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Bloom to start building 40,000 homes in Iraq
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Gulf Property Exclusive
bu Dhabi-based property developer Bloom Properties is gearing up to build 40,000 homes within the Shores of Karbala project close to the Iraqi city of Karbala, a top official said. The project was awarded to Bloom Properties a few years ago as Iraqi government wanted to develop homes for the native Iraqi people with its oil proceeds
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as part of its efforts to rebuild the war-torn nation. “We have received the tenders from the government and will appoint contractors to start work on the ground soon,” Sameh Muhtadi, Chief Executive Officer of Bloom Properties, told Gulf Property in an exclusive interview last month. “The land has already been handed over to us. It’s part of a ten-year deal to build 40,000 homes for Iraqis that we were awarded earlier.” Muhtadi said, his colleagues will be on the project site to start selecting the con-
tractor to develop the multiphased mixed-use township as per the approved master plan. At a possible development cost of Dh1 million, the overall cost of the project could be close to Dh40 billion, analysts say. Bloom Properties, a subsidiary of National Holding and a developer of integrated communities in the Middle East, had earlier announced plans to start infrastructure work on the Model Village and Shores of Karbala project in Iraq. The project was awarded
to Bloom Properties at a signing ceremony held in 2013 in the presence of the then Iraqi Prime Minister Noori Al Maliki. The announcement followed the submission of the final master plan of the Shores of Karbala project to the Iraqi National Investment Commission. The project will span an area of 20 square kilometers along the banks of Lake Razaza, west of the Iraqi city of Karbala. The mixed-use development will take shape as an integrated city offering contemporary civic amenities
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ABUDHABI Sameh Muhtadi, CEO of Bloom Holding and Omer Kaddouri, President and CEO of Rotana Hotel Management, after signing the management agreement last month
and facilities. Shores of Karbala is expected to accelerate the development of Karbala city into a thriving urban destination, leading to a more even distribution of population and urban settlements within the city. Set to host a network of modern urban centers, the development will be complemented by a series of green ecosystems aligned to the company’s strategy to enrich landscaping areas across all plots of the development. The project will take into account the housing needs of all segments of Iraqi society, including the business and commercial sector. Upon completion, it is expected to provide 40,000 housing units across four districts that will house an expected population of 200,000 to 250,000 people. The four districts of the project will encompass resi-
dential units of all types including villas, town houses, apartments, hotels, shopping malls, open markets, business centers, clinics, schools, mosques, public parks, children playgrounds, government, social and sports facilities, restaurants, cafes and auditoriums. Bloom Properties is undertaking another major mixeduse project in Minnesota, Miami. “We have already acquired a building there that is going to be remodelled. We will demolish one car park adjacent to that to commence construction,” Muhtadi said. The project is also located a block away from the famous Mayo Clinic.
Stella Maris
Meanwhile, Bloom Properties has launched a new project in Dubai Marina – Stella
Maris Residential Tower – which will be the tallest in the area with 53 floors. The luxury lifestyle residences offering expansive waterfront views will leverage the services of top-notch contractors to ensure the construction of a smart, safe and contemporary project. Onsite work is expected to start in the first half of 2015 and will extend through a 30month period. The Stella Maris residential tower will be located at the southern end of Dubai Marina, a developing commercial hub featuring a wide variety of retail outlets and lifestyle facilities. Offering a wide view of the harbour and upcoming Dubai Eye project, the spacious site will include multilevel basement car parking. The project is conveniently located within walking distance of the Jumeirah Lakes Towers metro station,
providing easy access to several facilities and services located in the Marina area. The Stella Maris Project is expected to attract local and international investors for its differentiated design that will provide a competitive edge in Dubai’s resurgent property market. Reflecting the architectural vision of the Dubai Marina, the project will sport a dynamic façade of interacting light, sea and sky through horizontal elements such as balconies and artistic shadowing to create a ‘breaking wave’ effect. Bloom has designed residential tower featuring 279 apartments in total, ranging from 1 to 3 bedrooms, as well as 4 bedroom duplex apartments, townhouses and penthouses. Each townhouse and penthouse will have an independent terrace and swimming pool, whereas luxury penthouses will feature large bedrooms with a panoramic view of the Marina. The self-contained building will also offer a host of amenities including a health club, steam room, sauna, kids room, cinema, games room, meeting space and outdoor swimming pools. Bloom has to its credit today an established portfolio of completed projects in Abu Dhabi, Al Ain and Dubai spanning residential, education, hospitality, leisure and retail. The developer is also engaged in building a portfolio Gulf Property
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ABUDHABI of sizable reals estate projects in key regional markets in the Middle East and other emerging markets.
Park View
Bloom Holding recently launched Park View, a mixed-use development that is set to take shape on Saadiyat Abu Dhabi. Located in the University neighbourhood at the heart of the Marina District and across the street from the New York University’s Abu Dhabi campus, Park View will comprise a residential and a hotel apartment building, featuring design and architectural elements integral to urban upscale living. The residential building will include a total of 234 residential units ranging from studios to two-bedroom apartments. Upon completion, the 188 hotel apartment building will feature studios, one and two bedroom and executive apartments The development will also comprise a wide range of commercial and leisure facilities including retail outlets, restaurants, an infinity edge pool 30 meters above the ground, a state-of-the art gym, and a fitness center Sameh Muhtadi, CEO of Bloom Holding, said: “Park View will prove the ideal living space for those seeking an exclusive address. The complex when completed will offer seamless access to a wide range of residential, hospitality, leisure and retail destinations. As the name implies, the development will feature panoramic views of the adjacent park and also boast an inner garden. In addition, it will provide an enriching and eco-friendly experience for Park View residents, and ensure their
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compliance with best-inclass sustainable standards in line with Bloom’s commitment to the environment. The company is among the first developers in the region to provide end-users with comprehensive energy consumption rating data.” Park View will further enable Bloom Holding to strengthen its market share in high-demand areas such as Saadiyat-Abu Dhabi. The development will offer easy access to the major roads network linking Abu Dhabi’s key tourist destinations including the upcoming museums in the cultural district of Saadiyat as well as the tourist attractions in Yas Island, all within a five to 10 minutes drive. Meanwhile, Bloom Properties has signed an agreement with Rotana Hotel Management to operate its 188-key hotel apartments within Park View development.
Sameh Muhtadi, CEO of Bloom Holding and Omer Kaddouri, President and CEO of Rotana Hotel Management signed a management agreement last month. Muhtadi said: “We are delighted to be partnering with Rotana Hotel Management, which has extensive experience in operating well-established hospitality brands specifically in Abu Dhabi and across the region. This agreement is part of our ongoing efforts to consolidate our hospitality portfolio and expand our footprint in Abu Dhabi’s rapidly growing hospitality sector. “In response to the growing demand from leisure and business travellers to the emirate, Bloom Holding is committed to developing a diversified array of hotel properties that cater to both upscale and mid-range segments.” Due to open in 2017, the hotel apartments feature stu-
dios, one and two bedroom units and executive apartments. The hotel apartment units will be up for sale within a few weeks. Omer Kaddouri, of Rotana Hotel Management, said: “We are very proud to have been selected to manage this superb property which will have a great appeal, particularly among tourists and long stay guests who are looking for the kind of excellent destinations the island represents. Abu Dhabi will remain a focus market for Rotana in the years to come as we move towards our goal of operating 100 hotels by 2020.” Conveniently located close to major road networks linking Abu Dhabi’s key tourist destinations in Saadiyat and Yas Islands, the Park View development will also comprise a residential building offering 234 studio, one, two and three-bedroom residential units.
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Aldar boosts retail offer with new mall ABUDHABI
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Featuring design and architectural elements integral to urban upscale living, the mixed-use development will comprise a range of commercial and leisure facilities including retail outlets, restaurants, as well as an infinity edge pool 30 meters above the ground, in addition to a state-of-the art gym and a fitness center. Bloom Holding’s other hospitality offerings include the 25-storey Bloom Central mixed-use development that will house two properties managed and operated by Marriott International. Currently under construction, the development comprises the five-star 315-room Abu Dhabi Marriott Hotel and the 64-key Marriott Executive Apartments. In addition, Bloom boasts strategically located hotel properties on Reem Island, Abu Dhabi Marina, and Rochester in the United States. g
ldar Properties PJSC, Abu Dhabi's leading listed property developer, recently launched Al Falah Mall and the expansion of Al Jimi Mall that is expected to boost its retail portfolio as well as increase recurring revenue and help the company become more sustainable. Al Falah Mall will open in 2017 and provide the residents of the Al Falah Community and the existing adjacent communities with an attractive and well-designed civic and retail hub. Al Falah Mall will have up to 31,000 square metres of a leasable area and will feature a tenant mix designed to cater for the needs of the local community, with a supermarket, cinema, family entertainment and a wellserved food court. Al Falah Mall will also be connected to the BRT (bus rapid transport) network, linking the site to a wider regional transportation network, and is located 25 kilometres to the East of Abu Dhabi Island, bordered to the South by Khalifa City and Al Shamkha and to the West Khalifa City, Masdar City and Abu Dhabi International Airport. Al Jimi Mall, the shopping mall of choice in Al Ain attracting 8 million visitors annually, will undergo an expansion to add another 65 stores to the existing 94 stores, bringing the total leasable area to 75,000 square metres.
The Mall currently has an anchor Carrefour and electronics, appliances, camping equipment, sportswear, luggage, toys and furniture stores. The Mall will be expanded to include some of the world’s leading retailers, a 10-screen cinema and much more. Al Jimi Mall is located in the Al Jimi district of Al Ain. Talal Al Dhiyebi, Chief Development Officer of Aldar Properties said: “Al Falah Mall and Al Jimi Mall will serve the needs of the people of these communities. Both malls will add to our existing retail assets across Abu Dhabi and are part of our strategy to further diversify our investment portfolio and grow our recurring revenue assets. “We recognise that people in Abu Dhabi want to live in destinations that provide them with the infrastructure, retail and leisure amenities that they want on their doorstops.” Most master developers are developing enough retail and leisure projects that helps them generate higher topline revenues that eventually boosts cashflow and help become more sustainable as a developer who has to often rely on market fundamentals and remain vulnerable to price volatility and external shocks. “The new shopping malls will help boost Adlar annual turnover and help the developer create a balanced portfolio and make the company shock proof,” said an analyst
requesting anonymity. “Like the way Dubai Mall has become a cash-cow for Emera Properties, shopping malls such as Yas Mall and other retail facilities offer similar values to the developers. So, for Aldar Properties, this is an expansion towards the right way. “This way, Aldar will have a guaranteed annual income that will help the company to face any financial crisis head on in future.” With Dubai Mall’s success, Emera Properties last year took its retail subsidiary Emera Malls to public with an initial public offer. Aldar Properties is one of the largest developers in the Middle East and North Africa region, with almost US$10 billion of assets. The company has developed some of Abu Dhabi’s most iconic and complex projects, from the Formula 1 facilities on Yas Island to the thriving new Shams Abu Dhabi community on Al Reem Island. Its property portfolio is diversified and balanced with a total asset mix comprising residential communities, retail property, with the remaining in commercial. There are also nine hotels with more than 2,500 available rooms. With a land bank of over 77 million square metres, 90 per cent of which is in special investment zones, Aldar Properties is focused on serving the growing demand in the UAR for highquality and professionally managed property. g Gulf Property
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Eagle Hills to build $3b Serbia project ABUDHABI
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Gulf Property Exclusive
bu Dhabi-based developer of largescale masterplanned communities and townships, has recently signed a contract with Serbian government to develop the $3 billion (Dh11 billion) Belgrade Waterfront project. Eagle Hills signed a contract with the Serbian government in April this year to redevelop part of central Belgrade under the project. “This project means a new birth for Serbia. Belgrade will become the regional center,
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and Serbia a country that attracts the greatest number of tourists and investors in the region,” Serbian Prime Minister Aleksandar Vučić said at the launch of the project last year. “We are going to build something that Serbia will be proud of. The project will bring progress for the entire country – it will advance our industry, tourism, and most of all, our construction industry.” The Belgrade Waterfront will occupy 1.8 million square-metres and will be 68 per cent owned by the Abu Dhabi company, while the rest will be held by Serbia, according to a government statement. Total built-up sur-
face will be about 1 million square metres, including 5,700 homes, office buildings, eight hotels with 2,200 rooms and the Balkan’s largest shopping mall of 140,000 square metres. “Nothing will remain unsold,” Serbian Construction Minister Zorana Mihajlovic said. “Everything in the contract shows that such risk, for now, according to all analysis, does not exist. Belgrade will not bear risk.” Under the contract, Eagle Hills will provide an initial investment of €150 million ($163 million, or Dh599 million) for the $3-billion project. It will also provide €150 million as a shareholder advance and a loan of €130
million to the Serbian government to clean up the area and buy land it doesn’t already own, according to the statement. In return, the Abu Dhabi developer will be granted a 99-year lease on the land. Half of the project, including a 22-floor mixed-use tower, must be completed within 20 years, according to the statement from the Eagle Hills unit Belgrade Waterfront Capital Investments. The project has the potential to create over 20,000 jobs in its development and a similar number following its launch. Similar urban megadevelopments potentially contribute up to 5 per cent of the gross domestic product
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At A Glance
Dh11 billion
ABUDHABI
development value of Belgrade Waterfront
1.8 million
square metres area to be covered by the project
20,000
jobs are to be created by the project.
Dh599 m
initial investment for the Belgrade Waterfront project
Marasi Al Bahrain
(GDP) of cities. Among the distinguishing features of Belgrade Waterfront are the 1.8 km Sava promenade and a 37-hectare central park. A Grand Boulevard lined by cafes, restaurants and retail outlets add to the lifestyle appeal of Belgrade Waterfront. Belgrade Waterfront is expected to be home to over 14,000 people in addition to over 12,000 office-goers through two commercial office clusters. Initial work on Belgrade Waterfront has commenced, and the first residential project within the mega-development will be launched for sale shortly. Eagle Hills, which has acquired another Abu Dhabi-
based master developer, Al Maabar in October last year, has projects in Serbia, Morocco, Jordan, Bahrain and Nigeria. Abu Dhabi’s Etihad Airways took over Serbia’s flag carrier in 2013. Eagle Hills, led by Emaar Properties Chairman Mohammad Al Abbar, has became one of the Gulf’s largest developers, with billions of dollars of projects. Eagle Hills is planning two hotel developments in Dubai and Fujairah, two people with knowledge of the matter said in February. The company is also planning a $4billion mixed-use development in the Ethiopian capital Addis Ababa.
Eagle Hills has recently launched a joint venture with Bahraini developer Diyar Al Muharraq for the development of a master-planned waterfront community – Marasi Al Bahrain – which will be developed on the Eastern shore of Diyar Al Muharraq. Eagle Hills, led by the company’s board member Mohamed Al Abbar and officials from Diyar Al Muharraq presented a scale model of Marasi Al Bahrain project to Bahraini King Hamad Bin Isa Al Khalifa in December. Occupying a total land area of 864,484 square meters, Marasi Al Bahrain is set to become a one of its kind destination in Bahrain with regards to all its exquisite offerings that include luxury hotels and restaurants, high end residential apartment buildings, Centers for business, leisure and entertainment, a harbour for cruise liners to dock, a Central Gar-
den and a Traditional Souq. Abdul Hakeem Al Khayyat, Chairman of Diyar Al Muharraq, said: “Marasi Al Bahrain project will have a considerable positive impact on the economy of Bahrain as its many contributions extend to the residential, business, trade and tourism sectors. Once all the concerned documentations are completed, we shall launch investment opportunities open to investors from both private and public sectors.” Concept Design works for ‘Marasi Al Bahrain’ have already begun. Marasi Al Bahrain will have a total built up area of approximately 1,252,743 square meters and will include a harbour for cruise liners and ships with fully integrated facilities, 1,980 meters of beaches that go around the city, a Central Garden that will span 93,000 square meters and which will provide the ideal destination to enjoy nature. Marasi Al Bahrain will also feature a Traditional Souq which will be a hub where heritage meets modernity boasting artistic and cultural elements, a business center that sits on 80,000 square meters, which will be a new concept that blends business, technology and prosperity. Another major tourist attraction will be a shopping, leisure and entertainment center; a mall, of over 190,000 square meters of built up area, which will provide a unique experience of a distinguished location Gulf Property
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ABUDHABI
along the beach front. On the residential front, Marasi Al Bahrain will provide its inhabitants and tourists with luxury hotels, with over 800 luxury rooms, and restaurants that overlook amazing views on the water front and opulent, high end apartment buildings reaching a height up to 45 meters that offer exquisite views. The residential apartment buildings will comprise a total of 3,500 apartments overlooking clear blue waters.
Abuja City
Eagle Hills appointed Julius Berger as construction partner for Abuja Centenary City, its premier lifestyle development in Abuja. Centenary City PLC, a joint venture with Eagle Hills, aims to create the city of the future in Abuja. This milestone development is envisaged as a city within the city, and will add tremendous value to the Nigerian economy. Abuja Centenary City is a fitting tribute to the country on its 100th year of formation. Envisaged as a spectacular city hub, the 1,300 hectare master-planned community is the largest of its kind in Africa, and is developed by Eagle Hills as part of a joint venture agreement with the Government of Nigeria. Former Nigerian president Goodluck
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Jonathan had marked the groundbreaking of the project earlier last year. Julius Berger has played a strong role in the development of Nigeria’s flourishing industrial and civil infrastructure for close to 50 years. During this time, the company became closely involved in the planning and construction of Nigeria’s new capital, Abuja FCT. Julius Berger is an industry leader and has strong track record of successfully delivering high quality works. The company has constructed major civil engineering and building projects throughout
the country, including entire road networks, key bridges, damns and ports, as well as airports, industrial and sports facilities and residential developments. The deployment of progressive construction methods combined with skilled staff numbering over 18,000 persons, ensure delivery of superior quality. Detlev Lubasch, Managing Director of Julius Berger Nigeria Plc said: “Being part of the Abuja Centenary City project is a testament to our long standing commitment to Nigeria. Our goal goes beyond working on the devel-
opment of this iconic city. We are strongly focused on transferring knowledge to our Nigerian employees through training and development – and are proud of our contribution to the development of specialist and technical skills of our workforce here.” Mohamed Alabbar, Board Member of Eagle Hills said: “Julius Berger has a long and distinguished record of delivering important projects in Nigeria and we are delighted to partner with them to develop Abuja Centenary City. Abuja Centenary City will be the world’s second-largest private city development. It
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ABUDHABI
will promote world-class multinational and domestic businesses in a planned environment that will encourage business and trade in the 21st century.” Eagle Hills continues to study a number of similar large projects and will look to develop real estate projects, from design to execution and asset management, including operating assets in hospitality and retail sectors. Meanwhile, The Address Hotels + Resorts, the five star premium hotel brand of Emaar Hospitality, a subsidiary of Dubai-based global property developer Emaar
Properties, is set to mark its entry into the Nigerian market as part of its international expansion strategy at the Abuja Centenary City. Philippe Zuber, Chief Operating Officer of Emaar Hospitality Group, said: “Nigeria is one of the fastest growing markets in Africa and serves as a perfect fit to complement our international expansion strategy. Abuja Centenary City offers an ideal and high-growth environment for us to establish our credentials as a premium hotel operator in the country.” With five prestigious properties in Dubai that are pre-
ferred by business and leisure visitors from Nigeria, The Address Hotels + Resorts has marked its global expansion with management contracts to operate The Address Marassi Golf Resort and Spa in Egypt. Additionally, the brand will operate The Address Masai Mara in Kenya, a retreat highlighted by the natural beauty of Kenya. The Address Hotels + Resorts has also launched The Address Residence Istanbul, a premium collection of 5star serviced residences, which are part of the Emaar Square integrated commu-
nity in Turkey. This marks the first full-fledged hotel and serviced residence project of The Address Hotels + Resorts, in an international market. “We see a strong growth opportunity in Nigeria, particularly in Abuja Centenary City, to introduce our hotel brand that is defined by the philosophy of ‘Where Life Happens,’” said Mr. Zuber. “This means a focus on providing a more personal and approachable experience to guests, whether business, leisure or group travellers, in a vibrant lifestyle environment.” g Gulf Property
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Ain Al Fayda gets Dh4bn emirati homes
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in Al Fayda (AAF) community, a Dh4 billion residential project in Al Ain is progressing well, according to developer Al Qudra Real Estate which was mandated by Abu Dhabi’s Urban Planning Council (UPC) to deliver 2,000 villas in phases. The project is being developed based on a construction programme scheduled over a period of four years, in alignment with the ‘Plan Al Ain 2030’. Slated to become a comprehensive, mixed-use, master-planned community
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consisting of approximately 5000 villas that will cater to an estimated 60,000 population base, AAF is strategically located at the foothills of the famous Jebel Hafeet which is host to tourism hot spots such as the natural springs of the Green Mubazzarah and Ain Al Fayda Park. The first phase of the AAF project consists of 2,000housing units spanning across 3.75 million square meters. Ain Al Fayda Lakes is an exclusive residential villas project, part of the AAF community, located in Ain Al Fayda area, one of the most
beautiful natural locations in the city of Al Ain. The project comprises 3 styles of villas built in clusters overlooking a natural waterway which is running through them, giving the residents a rare opportunity to enjoy the spectacular views from the privacy of their homes. Ain Al Fayda Lakes project’s design plan includes two types of residential villas: Island Villas and Canal Villas. They include 189 villas equipped with a road network, car parks, and green spaces with walkways facilitating an easy access to the park – which overlooks the
waterfront, and the shopping centre to be built later. The Island Villas consists of 24 deluxe villas with a gross floor area of 710 square metres and 752 square metres on a total plot area of 2,025 square metres and 3,375 square metres respectively. Each villa has 6 en-suite bedrooms. The villas are built on the island which allows their residents to enjoy a captivating view of the waterway in the privacy of their homes. The Canal Villas consists of two clusters: cluster A, which includes 84 deluxe villas with a gross floor area of
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At A Glance Dh4 billion
development value of Ain Al Fayda villa community
5,000
emirati homes are being built under Ain Al Fayda project
2,000
villas are being built by Al Qudra Real Estate
Dhabi, but also to contribute to the building of communities which promote interpersonal relationships among members. In our projects we seek to provide this interaction by the design style and the facilities available such as leisure and community centres, and vast outdoor areas.”
Al Naseem Project 589 square metres and 5 bedrooms each. Cluster A is located around the park and next to cluster B villas, which consists of 81 deluxe villas with a gross floor area of 535 square metres and 4-bedrooms each. The two clusters form an integrated residential community. Mohammed Bin Thaaloob Al Darei, Chairman of Al Qudra Holding, said: “These projects come in line with the development plan the company is keen to accomplish in Abu Dhabi by adopting and implementing effective strategies and key projects in various sectors including real
estate, oil and gas, tourism, and healthcare, which benefits the society as a whole while promoting investment activity.” The AAF community project has been designed for UAE nationals as part of the government’s emirati housing plans. Khalifa Yousef Khouri, Chairman of Al Qudra Real Estate, added, “The driving idea behind these residential communities was the wellestablished family values in the Emirati society. Al Qudra Real Estate aspires to not only develop the real estate sector in the Emirate of Abu
The design of the Al Naseem project is a synergy of modernity and tradition. Inspired by Al Ain city’s spirit and style of architecture and designed in an environment-friendly way, the project's design plan includes an intersecting network of pedestrian pathways, open spaces and parks which link houses to each other and form an ideal destination for city breaks. The Al Naseem project consists of two major parts. First part is residential villas consisting of two clusters (A) and (B). Cluster (A) includes 24 five-bedroom villas spanning across a plot area of 752 square metres and a gross floor area of 587 square metres divided as to include the house, the gar-
ABUDHABI
den and their attachments. The inside and outside spaces are constructed with the same consideration and taking into account the specifications of the Emirati family lifestyle. Cluster B includes 69 fourbedroom villas on a total plot area of 613 square metres and a gross floor area of 534 square metres. The villas are divided into two yards, the front guest yard and the back yard. The (Al Majlis) room overlooks the front guest yard, while the family rooms overlook the back yard. A private swimming pool can be also added to the back yard. All house facilities are located near the entrance. The second part of the project includes a number of public facilities, which include a mosque, a women's club, a community centre, and shopping centres. The mosque has been designed on an area of 1,200 square metres facing the (Qibla) and in keeping with the architecture of the city. The women's club and community centre extend on an area of 5,000 square metres, and are constructed to provide opportunities for social interaction for women and a convenient environment to practice various social and sports activities. The shopping centres comprise two buildings. The first building extends over 1168 square metres, while the second occupies 610 square metres. Including department stores, cafes and other leisure facilities, the shopping centres are conveniently located near populated areas. g Gulf Property
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Dr. Ravi Pillai makes $1.5bn foray in Dubai
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Gulf Property Exclusive
ahrain-based nonresident Indian entrepreneur Dr Ravi Pillai, Chairman of RP Group, has made a strong foray in Dubai’s real estate market with a Dh1.5 billion project, after watching the market closely from a distance for decades. Holding company RP Group enters real estate market in Dubai with Dh5.5 bn ($1.5 billion) projects through RP Global This marks a major shift for the $4 billion (Dh14.6 billion)
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RP Group that draws on its construction business expertise to bring economies of scale to the projects developed in own land in Dubai . RP Global, part of RP Group of Companies, last month broke ground on its new multi-storey residential tower project RP Heights marking its entry into the real estate market in Dubai. RP Global will initially develop two projects in the heart of the city with a total development value of over Dh5.5 billion. RP Heights, the first project in Downtown Dubai is a multistorey residential tower
Dr Ravi Pillai, Chairman and Chief Executive Officer of RP Group, a $4 billion annual turnover conglomerate
within two minutes walking distance from The Dubai Mall. It will feature 268 luxury residences in a mix of studio, 1, 2, and 3-bedroom apartments, in addition to luxurious penthouses on the upper floors. RP One, the second project, will be an iconic mixed-use development on Sheikh Zayed Road, which will be unveiled in the second half this year. This Dh4 billion ($1.1 billion) development is situated right behind the Business Bay Metro Station, and will feature a spectacular mixed-use tower, which will define the Dubai city skyline.
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RP Group’s Gulf Asia gets Dh2.28bn job
ulf Asia Contracting, part of the multi-billion dollar RP Group, has been awarded over Dh2.28 billion in civil and industrial construction contracts in the United Arab Emirates making it a significant player in the industry even as the RP Group expands its operations across the region.. Mid to high-rise residential projects like the City Towers, Ajman Corniche, Yasmeen Towers and the Oasis Towers with distinctive architecture and state-of-theart amenities are currently underway to modernise Ajman’s skyline. The combined estimated worth of all six Gulf Asia Contracting projects in Ajman is worth Dh1.78 billion making it one of the biggest contractors to operate in Ajman. Gulf Asia Contracting is currently working with the Ajman Real Estate Invest-
“Our expansion to real estate development complements our core competencies in construction and infrastructure projects,” Dr. Ravi Pillai, Chairman and Chief Executive Officer of RP Group of Companies, said at the ground-breaking ceremony. “The key differential of RP Global is our group’s ability to bring unmatched development synergies through our own construction firm, Gulf Asia Contracting. This will ensure strong economies of scale, the highest standards in construction and a firm delivery schedule. We will pass on this additional value to our customers, who will become part of truly world-class developments
built to the highest standards of quality and sustainability.” With a geographical footprint across the Middle East, Asia, Africa and Australia, the RP Group of Companies is one of the largest employment providers in the region and has over 85,000 employees, which is set to increase to 100,000 by end-2015. The Group has executed projects worth over US$25 billion globally, and has 26 business entities in 20 cities across nine countries, with a track record in heavy civil and building works over the last 20 years. Dr Pillai added: “We are constructing RP Heights in Downtown Dubai on land owned by RP Global and
ment Company to construct several residential projects. Ajman tourism revenues reached nearly Dh300 million in 2014, compared to Dh220 million in 2013. The number of hotel and hotel apartments’ guests in 2014 increased to 850,000, compared to about 600,000 in the previous years. Key Ajman projects for Gulf Asia Contracting include the City Tower complex (G+4P+20 floors, 9 Towers); Ajman Corniche Residences (7 towers each having 39 floors); Yasmeen Tower (G+4P+15 floors) and Oasis Towers (G+6P+30 floors, 2 towers). The Ajman Bank Head Quarters is another prestigious project by Gulf Asia Contracting project which has also won a five-star hotel in Dubai Marina to be operated by Crowne Plaza. The company has also recently completed a four-star hotel in Bur Dubai, a fourstar hotel apartment building in TECOM and several villa projects. Established in 2002, Gulf Asia Contracting has over 10,000 staff on payroll. g using our own internal financial resources. This demonstrates our commitment to delivery and to establishing our distinct identity in Dubai’s property development sector.” The group has executed over 130 projects for clients including Saudi Aramco, SABIC and its affiliates, Qatar Gas, Ras Gas, ADNOC, Abu Dhabi Oil Refining company, Sipchem, Shell, Exxon Mobil, Total Refinery, Dow Chemicals, Qatar Petroleum, Oryx GTL, Dolphin Energy and Kuwait National Petroleum. Dr. Pillai said that the Group’s decision to expand to property development in Dubai is led by the robust
NEWPROJECT growth and economic fundamentals of the city. “With the current population of over 2 million expected to grow to 3 million by 2020, and the city’s status as a business and leisure hub, the property sector of Dubai has strong growth prospects. “Today, Dubai is one of the world’s best investment destinations for property compared to Singapore or Mumbai,” Dr. Pillai explained. “RP Global’s vision is to be one of the most innovative and trusted developers of distinctive real estate concepts globally by creating innovative lifestyle concepts distinguished by excellent design, superior build quality, timely delivery and delightful after-sales experience,” he continued. He added that the two RP Global projects will have optimal floor area ratios, high ceilings and large balconies that add to the quality of life of residents. “We are committed to delivering the highest service standards to our customers across all touch points. Already, there is significant demand for our projects, which is a mark of investor trust in RP Group’s strong industry credentials.” With a presence of over 40 years in the GCC region, it is also further scaling up its hospitality business in the UAE with two new hotels in Dubai Marina and Bur Dubai. With over 85,000 employees, RP Group has an annual turnover of over $4 billion, and interests in six core business sectors – construction and infrastructure development, healthcare, education, hospitality and trading, in addition to property development. RP Group has 26 business entities and operational bases in 20 cities in nine countries. g Gulf Property
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Binghatti plans Dh1bn freehold properties NEWPROJECT
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Gulf Property Exclusive ubai-based Binghatti Developers announced a strong foray in the emirate’s real estate market with a Dh170 million project, Binghatti Apartments – a complex hosting 222 apartments being built at the Dubai Silicon Oasis. “We are planning to de-
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velop a number of properties with an investment outlay of around Dh1 billion,” Muhammad Binghatti Aljbori, Chief Executive Officer and Chief of Architecture of Binghatti Developers, told Gulf Property on the sidelines of a press briefing held last month. “We have a number of projects in the planning and development stages and we will make announcements as and when they are ready for launch.” With prices starting at
Dh425,000 for a studio, the company is targetting the middle income groups where demand is picking up despite a slump in the overall real estate market. The 222 apartments will be centrally located just 10 minutes from Downtown Dubai in Dubai Silicon Oasis. Binghatti Apartments joins a number of projects launched in recent months that is gradually bringing down the price barriers of proprties and making them affordable. It is the third proj-
ect announced in 2015 that has brought down the apartment prices below half a million mark – making Dubai more affordable for the middle income groups. “If the trend continues, Dubai’s residents will start investing in their future homes in Dubai and perhaps save on their monthly rents,” said a property analyst requesting anonymity. Following the launch of the Glitz by Danube where prices startd at Dh475,000 apiece, Nshama – a new de-
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veloper has recently upped the ante by launching studio apartments from Dh349,988 apiece – the cheapest freehold apartment in Dubai. Binghatti Apartments fall in between. These developments reflect a marked shift in Dubai’s real estate market that has been boasting of luxury and super luxury properties for more than a decades when developers were outdoing each other on the luxury amenities that made Dubai’s properties un-
afforable for most people. The 222 apartments are available in many layouts, including studios, one-bedroom, two-bedroom, and three-bedroom apartments as well as spacious duplex layouts for the one, two, and three bedroom apartments. With prices starting at Dh425,000, the apartments offer a wide range of sizes from 434 square feet to 2,653 square feet in the spectacularly designed building. The new development will also host facilities
for retail units on the ground floor of the building. Each apartment will also have access to lifestyle amenities located on the roof of the building including a health club with personal trainer, a swimming pool and Jacuzzi, a running track, as well as a barbeque area and children’s play area. Muhammad Binghatti Aljbori said, “In Dubai, the residential sector has witnessed strong demand across all segments in 2014 and this trend has continued into
2015. Testimony to this is the increase in the number of developers who are launching projects across the UAE. “There is an excess of developers focusing on the higher end of the residential market, we feel that the demand for affordable, midsegment properties is far outpacing the available supply and that this segment will continue to experience growth in Dubai and the region as a whole,” Aljbori added. g Gulf Property
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By Indrajit Sen Staff Reporter
anube Properties last month launched the third and what would probably be the last phase of its Glitz project, Glitz Residence III by Danube. The project, being developed at a cost of Dh400 million, takes Danube Properties’ total investment in the Glitz project to Dh700 million, Rizwan Sajan, Founder and Chairman of Danube Group, said at the launch. Located in Dubai Studio City, the freehold project offers 352 units in the studio, 1, 2 and 3-bedroom apartment categories, across 2 towers of 8 levels each. The starting price for a studio apartment in Glitz 3 has been pegged at Dh475,000, with the 3 bedroom apartments priced at Dh1.5 million. The per square feet area price that the developer is charging for the units start
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Danube unveils Dh400m Glitz III from Dh900, Gulf Property can reveal. The units will range in net areas from 433 to 1,355 square feet. Danube Properties has maintained the attractive 1 per cent per month payment plan for the Glitz 3 project. “You pay 10 per cent initially as the booking money, 15 per cent in the next 60 days, and then you pay 1 per cent every month,” Sajan, a nonresident Indian entrepreneur, told this magazine. “A buyer can rent the property even before paying the entire amount, and then use the rental income to pay the remaining monthly instalments,” Sajan said while explaining the convenience of the payment structure.
He also assured that investors can expect a returnon-investment (ROI) of 16 to 17 per cent. In the days leading to the launch of the project the developer had ‘painted the town red’ with advertisement banners and hoardings across Dubai, as well as promoted the payment offer through ads on TV, FM radio and print media, Atif Rahman, Head- Property Development of Danube Properties, commented at the launch. Although a total residential project, Glitz 3 also includes 6 retail stores, being offered on a leasehold basis. “The shops, like a laundry and a supermarket, will be in the in-
terest of the community. These will cater to basic requirements,” Sajan said. Each tower will include modern amenities, Danube says, including landscaped gardens with a fountain, tennis and basketball courts, health club, swimming pool, air-conditioned kid’s play area cum party hall and leisure deck. The developer is also laying emphasis on the interior designing of the apartments and is offering buyers a choice of interiors and layouts. Glitz 3 – which Danube Properties hopes to deliver by 2017-end - becomes the fourth property announcement by the brand within a year. The year-old developer
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NEWPROJECT Rizwan Sajan, Founder and Chairman of Danube Group, Anis Sajan, Managing Director of Danube Group, Adel Sajan, Director of Danube Group and Atif Rahman, Head of Danube Properties (Extreme left) at Glitz III launch
has so far launched two master communities in Dubai: Dreamz and Glitz, and has broken ground on both in February. Danube Properties’ total investments in both the developments now stand at Dh1.2 billion and Sajan says the amount is self-generated and has no bank sponsorships. Earlier this year, Danube claims it successfully sold out all the units of its first two residential towers Glitz 1 and 2, comprising a total of 300 units. “The constructions of Glitz 1 & 2 are almost three months ahead of schedule. We expect to do the same for Glitz 3,” Atif Rahman, Head of Danube Properties, said. Danube Group claims that
65 per cent of building materials which goes into the construction of any building in the UAE is supplied by it. Danube Group’s strength in its core business of building materials is believed to give its property arm an edge in construction of projects. “Generally with us the selection of building materials is easier, so it helps us in pacing up construction,” Rahman stated. Sajan further elaborates, saying: “So when the construction of the project is done from in-house building materials, we can ensure quality. Like how I have built the Danube building materials business from scratch to No.1, I want to build the
property business in a way that people have trust in the name and put their money into it. I hope this project (Glitz 3) too will be a success.” Danube is not however the only developer to launch projects in the affordable housing sector. Multiple Dubai-based developers, the likes of Dubai Properties, GGICO, Nshama, have already forayed into this lucrative segment. And with the surge in demand for budget properties in the emirate, competition in the sector is only set to intensify. “Yes many other developers are doing it (launching affordable projects). But we are actually offering luxury to
the investor at affordable prices. The amount of open spaces the project (Glitz 3) has, in the form of the tennis and basketball courts, gym, swimming pool, mosque and the fountain, is amazing. So the other developers do not offer all these amenities. Even if you do find, it will come at a high price,” Sajan argues. Sajan further states that the ready infrastructure in Sports City is a significant advantage the Glitz project enjoys. “I have personally visited the sites where other developers are building and no infrastructure is ready. If you go to Studio City, you have all the amenities in place; there is a supermarket, a school, and everything else that you need. Usually in Dubai if you invest in a property, you have to wait for six to seven years for the entire nearby infrastructure to take shape. But here you have everything ready,” he says. So what next for Danube Properties? “As a developer, we do not want to rush with building projects one after the other. We do want to develop more projects however,” Rahman said. Sajan agrees saying, “We do not invest in land banks. We do one thing at a time. After I sell Glitz 3 I will look for another land bank in Dubai. The property market in Dubai is vibrant. We will look at the market and then launch another project.” g Gulf Property
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Good time to buy property in India S
Gulf Property Exclusive
tability in housing prices and favourable rupee movements are bringing back the Non-Resident Indians (NRIs) in a big way to the real estate market, mortgage giant HDFC has said. To tap their interest, HDFC and also a number of property developers are undertaking special marketing campaigns including organising property fairs in places with high NRI population such as the GCC, US and the UK. Interestingly, the non-resi-
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dent Indians living abroad are showing a renewed interest in the Indian housing market at a time when the local demand is relatively sluggish. "We are seeing a lot of interest from the NRI community. The rupee depreciation against the US dollar is also helping, for the prospective home buyers from abroad," HDFC Ltd managing director Renu Sud Karnad told the media recently. Karnad said that housing prices have stabilised, while softening of interest rates have helped make the home purchase much more affordable. This explains why a number of Indian real estate exhibitions in the GCC, United
Sunil Jaiswal, President of Sumansa Exhibitions
Kingdom and the United States are becoming house hunting ground for NRIs while at the same time a number of Indian developers setting up overseas marketing offices to increase their
share of the growing NRI investment. Mahindra Lifespaces, part of the $16 billion diversified conglomerate Mahindra and Mahindra, is the latest Indian developer to set up office in Dubai. “High interest rate and inflation has kept the Indian real estate market subdued with sluggish demand, although there are signs of improvement,� Anita Arjundas, Managing Director and Chief Executive Officer of Mahindra Lifespace Developers told Gulf Property. “Once the new Real Estate (Regulation and Development) Bill comes in to effect and domestic consumption starts to drive demand, we will see an upturn in property
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Indian Property: Down, But Not Out!
fter more than three years of spectacular house price rises, India’s property market continues its downward trend, mainly due to high interest rates on home loans and slower economic growth. Residential property prices are now falling in most cities in real terms (given India’s high inflation, it is important to distinguish nominal price rises from real price rises). Nominal house prices rose in 13 cities (out of the 26 cities covered by National Housing Bank (NHB) Residex figures) during the year to Q1 2014, while the remaining 13 cities market. “In the meantime, the current sluggish market offers a good investment proposition to NRIs and we see renewed interest among them to invest in Indian real estate.” Property consultancy major CBRE's South Asia Head A S Sivaramakrishnan said that NRIs have become extremely important for the Indian real estate market and they contribute 8-10 per cent of the total housing sales volume across India. Stating that the contribution of NRIs in housing sales varies from city to city, he said the NRIs account for 3035 per cent of apartments sales in Kerala. Their contribution in Hyderabad and Delhi-NCR markets are 10-12 per cent, Sivaramakrishnan added. Cushman & Wakefield executive director Shveta Jain also said that investments in the real estate sector by NRIs have gained momentum over time with prices being stable or reaching bottom in select cities and markets, rupee devaluations and attractive long term returns. "With city limits expanding to peripheries, investors have a variety of products ranging from affordable to luxury developments and
have seen their nominal house prices fall. But when adjusted for inflation, house prices actually fell in 21 cities, whereas only 5 cities experienced price increases. In New Delhi, house prices fell by 1.49% during the year to end-Q1 2014. When adjusted for inflation, house prices in the capital city actually dropped 7.82% over the same period. During the latest quarter, house prices increased 1.53% (2.81% in real terms). The highest annual house price increase was in Surat at around 17.86% (10.28% in real terms) y-o-y to Q1 2014. It was followed by Chennai, which had a 12.58% price increase (5.34% in real terms), and Nagpur, which had a 10.43% price rise (3.33% in real terms). g
special housing projects like senior homes to choose from. "Given the tepid demand from resident buyers and investors, developers have also undertaken special marketing efforts to target NRIs, whose investor confidence in Indian real estate market will get a further boost with the introduction of the Real Estate (Regulation and Development) Bill," Jain added.
UAE NRIs to buy flats in India
About 79 per cent NRIs are interested in buying an apartment compared to plots, land, villas, commercial or retail in India, according to a latest report by Sumansa Exhibitions, organisers of Indian Property Show, that kicks off in Dubai next week. According to the findings, Bangalore has topped the charts for NRI property investments and shares the spot with Mumbai, followed by Chennai, Pune, Cochin, Delhi, Hyderabad, Navi Mumbai, Goa and Ahmedabad. Apartments are preferred choice of investment for most NRIs as one of the key advantages of an apartment
is security. Facilities such as power and water backup, uninterrupted supply of cooking gas is also some of the key factors going in favour of apartment purchases. An apartment which is part of a large development comes with a number of benefits, including well maintained garden and landscaping, club facilities, maintenance and provision of hassle free services, ease of renting, easy availability of convenience within the complex amongst many other facilities. “[The year] 2015 is expected to be a happening year for the real estate sector in India,” Sunil Jaiswal, President of Sumansa Exhibitions, said. Bangalore is an end userdriven market. The city has managed to survive the onslaught of the slowdown which gripped the country a few years back. The “City of Gardens” was able to keep the sales ticking and also emerged as the territory with the highest number of new projects unveiled in 2014. India’s Silicon Valley – Bangalore – is the fastest-growing metropolis in the Asian continent, he said. For decades, the city has been widely known all over
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the world for its cosmopolitan outlook, salubrious climate, and innate desire to respect different cultures. Today, it is a much sought-after city with NRIs returning to India. Many are keen on making the city their home. “The city has evinced so much interest among NRIs of late that even those who have not had the occasion to visit the city have plunged into investments in real estate here. It is most popular among techies and skilled professionals,” Jaiswal says. Indian Property Show takes place from 11th-13th June 2015 at Dubai World Trade Centre. In an exclusive interview with Gulf Property, Sunil Jaiswal, President of Sumansa Exhibitions, elaborates his thoughts on the Indian real estate scene from an NRI perspective. Excerpts: Gulf Property: What is your view of the current Indian real estate market? Is it suffering from oversupply? Sunil Jaiswal: The real estate sector is divided in four sub sectors – Residential, Commercial, Retail and Hospitality . In context with Indian Property Show we can discuss only the residential growth wherein the new launches have seen an increase of 43 per cent in the first quarter of 2014 with 55000 units delivered in eight major cities in India where Bangalore had the highest of them. With 100 per cent FDI allowed by the new government, we expect more and more foreign companies to come in to the market. Is it a good time to buy for Gulf-based non-resident Indians? Government is in a mood of Gulf Property
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creating buyer friendly environment and the real estate sector looks promising for the next five years. Recently there has been a lot of action in commercial sector with Mumbai locking in returns of 12 to 19 per cent per annum; Bangalore 11 to 12 per cent and Delhi NCR 8 to 10 per cent per annum. We are seeing some Private Equity deals happening as well. Additionally, the Government of India has announced a host of measures to spur the real estate sector, which include an allocation of Rs 7,060 crore (US$ 1.16 billion) for the development of 100 smart cities, a reduction in the size of projects eligible for FDI from 50,000 square metres to 20,000 square metres, and having the minimum investment limit for FDI to $5 million. So it’s a good time to invest in the Indian Real Estate market. From a pure investment
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purpose, how do you see investment in Indian real estate compared to investing in stocks, bonds and derivatives? Our event is buyer centric, it’s more than just an exhibition... it’s a must attend event for people who are planning to buy their dream home or make an ideal investment. Even if you have not made up your mind to buy a property or you think you don’t have the budget – it’s still recommended to come visit, see, research, understand and get that idea started in your mind or must say in your hearts. Whatever you decide to buy, where ever you decide to buy and whatever the budget may be, my recommendation is to buy through brokers in India or on your family /friends recommendation, search on the net, but take action and buy something now. I would like to give you an
example of someone you brought a piece of land with four-bedroom bungalow in 2005 at Rs5.7 million. Today the value is Rs30 million – that’s a four-fold income in 9 years which you don’t get to see quiet often while investing in either stocks / bonds or derivatives. Investment in Indian property sector is best investment amongst all asset classes for various reasons including highest loan-to-value (LTV), tangibility, less volatility, rental income and appreciating asset. And the icing on the cake is that the Indian property market is huge and yet affordable compared to international investment destinations. Capital appreciation on real estate in India is far higher than the high-yielding deposits for non-resident Indians (NRIs). More and more NRIs are now choosing to invest in Indian real estate because
they are aware that this is the only route that assures them of optimal benefits. If you maintain a broad investment horizon and have chosen properties well, the capital appreciation on real estate translates into multi-fold putting all other asset classes behind.
How much investment is being made by Gulf-based NRIs in Indian real estate market annually? We as Sumansa do not keep a track on the investments being done in India from the NRIs living in the Gulf. However, having said that, exhibitors at the Indian Property Show do approx. Rs3 billion business per show, so from the Indian Property Show alone we are looking at approx. Rs6 billion business from the NRIs.
A good number of Indian developers have set up their offices in Dubai to
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Key Findings
ome of the most interesting facts about NRIs found in the survey conducted by Sumansa Exhibitions include the following:
1 Highest number of buyers in the age group of 31-50 years at 67%. 1 55% looked at the property with the intention of buying for their own use. Whereas for the others it was an additional investment. 1 Residential apartments are preferred for investment with 79% voting in favour, followed by villas and land. Commercial properties are least preferred for invest-
cater to the Gulf-based NRIs. What do they tell you about their experience here? Real estate developers are targeting NRI markets in a big way. Most of the developers have set up their dedicated sales team / offices in order to cater to NRI clients and most of them have got good response over a period of time. Indian property used to mean apartments in Bangalore and Mumbai – for a long time. However, now we see other cities have come up with large offerings? Have you managed to attract Tier II cities in your show? Tier II cities always had their share of Demand and at the Indian Property Show we have displayed many Tier II cities such as Jaipur, Pune, Lucknow, Agra, Mysore, Nasik etc.
If you have to advise an NRI friend on investing in a property, what would that be? Research micro markets, especially in the city you come from. Invest in pre- launch projects with a credible builder, keep a track of your investment, and take good care of your property after all
ment. 1 Over 65% property buyers looking to financial institutions to finance their purchase. 1 72% buyers aim for immediate purchase within next 6 months. 11% not sure of the time frame for purchase and rest would consider buying within next 1-2 years. 1 Demand for high end segment (1 crore plus) at 17%, Bangalore a leading real estate hub for luxury home investments. About 15,000 NRIs across UAE participated in the survey which was conducted to understand the reason of buying property in India, preferred cities for investments, type of property, budget and finances planned etc. g
it’s a tangible investment. Property investment is a great passive income source; give as much importance as you give your job or business. Have a strategy, adapt to changes and last be creative in selling. Reality estate market will always offer promising return on long term. It's no brainer... for example, you may take any city in India and check the per square feet rate 20 years back and then calculate the return on investment. On an average it will be eight times more that's 40 per cent returns per annum. So, think long term.
Are local banks funding homes bought in India by Dubai-based NRIs adequately? Local UAE banks such has ADCB, Mashreq, Emirates NBD have opened offices in India but currently do not offer home loans for NRIs, however recently Doha bank has opened office in Bombay and they have the home loan facility for NRIs so we do see a change in the banking sector catering to NRIs. How do you see mortgage rates changing for the NRIs? Good news is that the Government of India treat NRIs
similar to the Resident Indian, so the interest rates are same for NRIs.
Are you happy with the way Indian Property Show has shaped up so far? Yes, we are definitely happy with the way the Indian Property Show has shaped so far. This three day exhibition offers visitors a snapshot of the Indian Property market as a whole. The property developers who will be participating include best of the real estate and construction companies from India. The key goal of the Indian Property Show is to help the Indians living abroad realize their dream of owning a home back in India. At the show, visitors can be assured of best property deals and knowledge to help make their dream of owning or investing in Indian real estate come true. The exhibition also features not-to-be missed property and investment seminars by some of the most influential property industry gurus, and legal advisers. These seminars aim to guide you on the booming real estate market within India and help answer crucial questions like: 1. Is real estate a good investment?
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2. Is this the right time to buy/sell my flat? 3. Property trends in commercial and residential property 4. Best practices in the real estate industry etc. 5. Hotspots within key Indian cities, where and how to invest
Additionally, will also have a panel of legal experts from key Indian regions who will provide free advise on all legal matters. The lawyers at the show will provide fast answers to help you understand the law pertaining to any real estate law topic including buying or selling a home, foreclosure, property taxes, property deeds, real estate warranties, insurance, and easement disputes. Top rated lawyers from key Indian cities would be present at the respective regional pavilion. Visitors at the Indian Property Show are entitled to get free advice on any of their property related matter whether it’s for new property purchase; concerns related to existing property, tenancy laws etc. Besides guidance on real estate matters, there will also be informative and educative “Legal Seminars” by leading advocates from the different regions across India. Our exclusive “Know Your City” seminars aim to guide the buyers on key investment destination cities such as Mumbai, Pune, Delhi, Bengaluru and Chennai. The educative and interactive sessions will guide buyers on investment opportunities, real estate outlook, property trends, hotspots within key Indian cities, where and how to invest. g Gulf Property
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INDIAHOUSE At A Glance $2 trillion
investment needed to provide home for all Indian citizens by 2022
110 million
new homes needed to be built in 7 years to provide housing for all Indians
70%
of the urban housing need is in the affordable segment
20 million
India needs $2trillion to build homes for all homes generally remain vacant across India
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By Indrajit Sen Senior Reporter
f India needs to provide housing for its 1.2 billion population by 2022 as per the government’s vision, then there is no substitute to mass-scale affordable housing programme. India will need US$2 trillion (Dh7.3 trillion) investment to develop 110 million homes by 2022, according to a report by the global accounting firm KPMG. “Of this, 70 per cent of the
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urban housing need is in the affordable segment while 30 per cent of the housing need is concentrated in just two states,” the report says. About 20 million dwellings are lying vacant while 78 per cent of the investment in housing gets added to the GDP, the report says. “Between 1.7-2.0 lakh hectare land is likely required to meet urban housing need while 30-35 per cent of housing cost consist of fees and taxes,” the report says. Indian realtors at a recent property exhibition also spoke about the affordable housing issue.
Rahul Nahar, Chairman and Managing Director of Xrbia
“The government has taken commendable steps to finalise several landmark reforms. Prominent among
them include opening of retail sector to global investors, a new land acquisition law, streamlining of approval mechanism and appointment of a real estate regulator in each state,”M I Sait, CMD Mindscape ME, told Gulf Property in an interview. His company organised the Realty Indian Expo last month that had ‘affordable housing’ as its theme this year and hence most developers showcased budget properties. “This year, the property show is happening at a time when the property prices are stagnant and home loan lending rates
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Xrbia offers $3bn worth of projects
ndian real estate developer Xrbia has planned about 10 master communities in the MumbaiPune corridor in Western India, all of which it promoted to Non-Resident Indian (NRI) investors at the Realty India Expo in Dubai in May. The realtor – which has already developed 6 million square feet across Mumbai and Pune – claims it has 20 million square feet of projects (or 40,000 apartments) in the pipeline. “The sales value of the projects Xrbia is marketing is around Rs20,000 crores (Rs200 billion, US$3.14 billion), and the construction value is about Rs14,000 crores (US$2.19 billion),” Rahul Nahar, Chairman and Managing Director of Xrbia, told Gulf Property in an exclusive interview. “We are a huge team of 500 people. We have a good setup in Mumbai and Pune. We are in this business for a long time so we are a stable organisation,” Nahar said have been reduced with a special concession for women home buyers on the interest rate front,” M.I. Sait, CMD - Mindscape ME, said. The Indian real estate market’s value is expected to touch $180 billion by 2020. The housing sector alone contributes 5 to 6 per cent to the country's GDP. Also, in the period FY08-20, the market size of this sector is expected to increase at a compound annual growth rate (CAGR) of 11.2 per cent. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infra-
Nahar started Xrbia as a subsidiary company to Eiffel Group in the western Indian city of Pune in 1996. Till 2009 Xrbia operated under the parent company. “But then we thought we must launch an independent brand focussed toward affordable and mass housing. So we formed the Xrbia brand,” Nahar said. The company claims its mission is to build 100,000 smart homes by 2017 and one million smart homes by 2020, and 100 ‘futuristic’ citytownships by 2030 across various cities in India. Nahar said that his focus is not to develop small-scale residential projects, but to build ‘large townships and mass housing projects’. Affordability also forms a key component of Xrbia’s offerings as typically the starting price of an apartment starts from Rs15 lakhs ($23,500). The developer is charging a per square feet price of Rs3,500 ($55) for its
project on the fringes of Mumbai. “So we are catering to a large customer base,” Nahar comments. The real estate market in Mumbai has over the years become saturated, with property prices escalating unchecked. While the average price of a modest 2 bedroom apartment in South Mumbai, the downtown, starts from Rs20 million, ($314,000), even in the districts within the larger metropolis apartment prices can start from a crore ($156,918). There are credible reports that the Mumbai property market suffers from price bubbles, causing developers to charge exorbitant rates for below par products. In such a scenario, here is a lesser known developer who is selling an apartment for just 15 lakhs on the outskirts of Mumbai. One surely tends to ask how? Dheeraj Kocchar, Global Head-Sales and Strategy of Xrbia, said his company’s policy pivots on achieving ‘economies of scale’. Some of the measures to reduce costs include, using local labour force, 20 per cent lower material consumption due to less use of
structure for India's growing needs. According to a study by Knight Frank, Mumbai is the best city in India for commercial real estate investment, with returns of 12 to 19 per cent likely in the next five years, followed by Bangalore and Delhi-National Capital Region (NCR). “This is apart from liberalising Foreign Direct Investment norms in real estate and agricultural sector, introduction of Real Estate Investment Trusts (REITs) and allowing external commercial borrowings up to a billion US dollars for the affordable
housing sector. This is expected to improve the overall business environment across the country in the coming years. It has been estimated that the real estate sector has the potential to increase fivefold to reach $676 billion by 2025, particularly at a time when the government is finalising plans to announce 100 smart cities and 500 other cities across the country,” Sait was quoted as saying in a press release. While the real estate sector continues to reel under the pressure of rising demand for value segment housing,
when asked about how Xrbia will manage to deliver such massive projects.
100 smart cities by 2030
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steel and concrete and applying energy saving techniques. “We can provide all amenities and facilities (in our projects) at this low price is because of this phenomenon and also because of efficiency in planning and construction. All these factors help us offer apartments at a low price,” Nahar explains. He also believes that offering apartments at such low prices around Mumbai, gives Xrbia an edge over the other Indian developers selling their projects to NRIs in Dubai. “Our price range starting from 15 lakhs is so attractive. And I don’t think other developers offer properties in that range. And we have a unique product; ideal for any investor or end-user. Also, the locations are futuristic. I think we are confident that we will get a good response (in Dubai),” he said with confidence. “We have been promoting our projects to NRIs for a while now. For our first project in Pune we received a good response from Dubai. We have about 400 existing customers in Dubai,” Nahar added. g lack of industry status, need for increased investments, taxation reforms among others; industry reports however indicate potential in this segment which will only grow in the next five to 10 years. Asked about how he feels the overall real estate market in India is performing, Sait said, “It (the market) seems to be riding on the ‘Modiwave’,” referring to the business-friendly policies of Indian Prime Minister Narendra Modi that has boosted investor sentiments. “India offers a great investment opportunity in real estate. The outlook is positive.” g Gulf Property
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SPOTLIGHT DREI partners with Smart Dubai
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ubai Real Estate Institute (DREI) has signed a partnership with the Smart Dubai initiative to educate real estate developers about global standards, best practice and regulatory developments related to Smart Cities. Following on from the signing between DREI and the Smart Dubai initiative, the launch of the training workshops will take place on May 26, with the inaugural sessions held under the title: ‘Smart Region Guidelines.’ The workshops will be held at DREI and directed exclusively to the category of real estate developers operating in the emirate. g
Mohammed honours wasl with Dubai Quality Award
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is Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has awarded wasl Asset Management Group with the
Land Department visits British research institute
A delegation from the Dubai Land Department (DLD) visited the British Research Establishment (BRE) in London. Sultan Butti Bin Mejren, Director General of DLD, headed the delegation, accompanied by Majida Ali Rashid, Assistant Director General and Head of Real Estate Investment Management and Promotion Centre. BRE provides consultancy on buildings development and sustainability issues
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Dubai Quality Award for obtaining excellence in the Service category in recognition of employing the highest standards in the provision of services to their clients. In an official ceremony attended by Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, Chairman of the Mohammad Bin Rashid Al Maktoum Foundation, and senior government officials, Sheikh Mohammad presented the award to Hesham Abdullah Al Qassim, CEO of wasl Asset Management Group. “This important award serves as an appreciation for the continuous efforts by the wasl team to ensure that we provide the best service for our clients. It recognises the success of our strategy that stems from our firm belief of the importance of customer satisfaction, as it is this fundamental that reflects positively on our operations and our financial results from one year to another,” Qassim
said. A subsidiary of Dubai Real Estate Corporation, wasl Asset Management Group’s operations includes residential development, hospitality projects, and facilities management. “Wasl follows a philosophy in its work which stems from its vision, mission and values that focus on providing the client with the best services. Our approach is one we are committed to maintaining,” added Al Qassim. Among the organisation’s operations that so impressed the Dubai Quality Award judges were its customer services centres that work around the clock, its electronic services and mobile applications, its effective management of assets, its careful planning of maintenance jobs that minimise impact to its tenants and its successful control of budgets. The Dubai Quality Award has been recognising best practice in public and private sector institutions in Dubai since 1992. g
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GEZE ME looks at 2025 industry trends
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EZE, the developer and manufacturer of construction systems for door, window and safety technology wrapped up a successful conference on 2025 technology trends and launch GEZE Powerturn and
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Arcapita completes property sale to Towerbrook
A GEZE Concealed Swing Door automation. Hosted for a group of over 200 designers, architects, consultants and contractors along with GEZE's distribution partners, the event which took place on May 19 sought to introduce the latest GEZE Solutions. g
rcapita, the global investment management firm, said it has sold J.Jill Group Inc., a leading US-based multi-channel retailer of women’s apparel, accessories and footwear, to TowerBrook Capital Partners L.P., a New York and London-based investment management firm. The parties did not disclose the transaction value. Originally founded in 1959 and headquartered in Quincy, Massachusetts state of the US, J.Jill provides inspired styles to its loyal customer through an
SPOTLIGHT expanding base of more than 250 retail stores, a well-established catalog, and an extensive ecommerce platform. Arcapita in January also announced that it had sold its 50 per cent stake in Lusail Golf Development LLC to Barwa Real Estate Company QSC. Lusail Golf owns the development rights to a 3.66 million square metres plot of land north of Doha, Qatar. The total value of the plot is approximately US$1.4 billion. The plot owned by Lusail Golf is located in ‘Lusail City’, a master-planned development covering an area of 21 square kilometres. Lusail City, one of the GCC region's most high profile real estate developments, is sponsored by Qatari Diar Real Estate Investment Company. g
Accor hotels bag World Travel Awards lobal hospitality brand Accor group’s hotels in Dubai have received laurels at the 22nd World Travel Awards, a major industry event held in Dubai in May. Pullman Dubai Deira City Centre has told the media that it has accomplished the ‘World Travel Awards’ in May, with three awards in categories namely: ‘Dubai’s Leading City Hotel’, ‘Dubai's Leading Hotel Residences’ and ‘UAE’s Leading City Hotel’, in May. The 5-star Pullman Deira City Centre hotel is located next to the Deira City Centre. Sofitel Dubai Downtown, another of Accor’s 5-star hotel, has said that it has won the ‘United Arab Emirates’ Leading New Hotel 2015’. g
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SPOTLIGHT
Yassat Gloria gets 4-star
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ubai’s Gloria Hotels and Resorts said, Yassat Gloria Hotel Apartments, the 41storey tower located on Sheikh Zayed Road, has been granted a 4-star hotel
rating by the Government of Dubai’s Department of Tourism and Commerce Marketing (DTCM). Yassat Gloria Hotel Apartments, located beside the Dubai Internet City metro station,
he Dubai Electricity and Water Authority (DEWA) has won two awards at the 10th International Ideas.Arabia Conference 2015, in the Green Initiative and Technology categories. The event was organised by Ideas.Arabia, part of Dubai Quality Group. DEWA has won the ‘Idea of the Year Award’ in the ‘Green Initiative category’, for the 13MW first phase of the Mohammed bin Rashid Al Maktoum Solar Park and ‘Idea of the Year Award’ in the ‘Technology category’, for the Distribution Planning team’s idea to develop a backfill ma-
terial from locally-sourced mixtures of materials for MV cables. This has improved MV cable ratings, reduced thermal sensitivity, and extended durability. The Ideas.Arabia Conference, under the theme ‘Pillars of Innovation,’ was held under the patronage of HH Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman and Chief Executive of the Emirates Airline & Group. The conference featured experts in innovation and organisational innovation, and eminent entrepreneurs and professionals. g
comprises 408 suites and 602 hotel apartments. The 1,010-room hotel apartments feature 1 and 2-bedroom suites and hotel apartments, besides other dining and leisure amenities. g
Al Basel gets Deyaar award
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l Basel Real Estate Brokers has been awarded a ‘Gold Award’ for the second year by Dubai-based developer Deyaar for promoting and selling Deyaar Development’s projects. Al Basel said that it received the award, at a ceremony in April at Deyaar’s Head Office in Dubai, for its performance as one of Deyaar’s sales partners resulting in a 15 per cent growth in 2014 for the developer. Al Basel, a major real estate broker in the UAE, says it has successfully leveraged Deyaar’s portfolio in Dubai, which includes the DIFC Central Park building, Miracle Gardens and Atria – Business Bay projects. g
DEWA wins awards at Ideas.Arabia
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HMG Properties joins Spanish realty lobby
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Al Ghurair University opens doors to new graduates at annual Career Fair
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MG Properties said, it has been awarded the prestigious membership of Asociación Profesional de Expertos Inmobiliarios (APEI) or the ‘Professional Association of Real Estate Experts’ in Spain. HMG Properties says it is the first real estate group in
GCC and Middle East to receive such a membership and is also set to be an officially listed company at the association. Recently, HMG Properties has launched the Las Rosas Project, in Valencia and the Paradise Island Project in Canary Islands which consists of residential apartments. g
he UK’s Royal Institution of Chartered Surveyors (RICS) said, it has appointed Nicholas Maclean, Managing Director Middle East of real estate advisory firm CBRE, as Chairman of the RICS MENA Market Advisory Panel (MENA MAP). ‘The MENA MAP has a pivotal role to play in the development of RICS’ aim to be the leading body that develops and enforces professional standards in the industry, and offers access to the most sought after professional status in land, property and construction’, a statement from RICS says.
“I will endeavour to promote a healthy exchange of dialogue within member organisations along with playing a key role in developing expertise in the real estate valuation business across the MENA region,” Maclean was quoted as saying. Maclean has more than 25 years’ global real estate experience, including in the MENA and Turkey. He is also a Fellow of the RICS and a Member of the Institute of Rating, Revenue and Valuation (IRRV). In addition to managing CBRE Middle East, Maclean is also Chairman of The Lillian Sutton (SoC) trust fund. g
l Ghurair University recently organised a Career Fair for its fresh graduates where large companies set up their stands to welcome the prospective employees as most public and private sector organisations are recruiting professionals to manage their expansion. With the UAE economy expected to grow at between 4.5 to 5 per cent this year, most companies are expected to hire new employees. As employers are becoming more sophisticated due
SPOTLIGHT to the fast changing job market landscape, educational institutions also need to produce quality graduates to help organisations to navigate through various aspects of the economic cycles and manage the changes. Al Ghurair University, one of the oldest and among the most acclaimed ones, is one such institution that not only develop people as per the market needs — it also develops future administrative leaders, entrepreneurs and job creators. The institution focuses on building the future generation of the UAE's leaders by instilling the required skills and nurturing their inner strength to serve the nation. Al Ghurair University offers a range of undergraduate and postgraduate courses in various streams, and boasts of its multi-ethnic mix of students. g
RICS appoints CBRE MD to lead panel
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SPOTLIGHT Goldline Properties gets new CEO
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undar Rajan Tatachar, an engineering and project management veteran, has taken over the mantle of Chief Executive Officer of Goldline Properties in March 2015. Goldline Properties is part of Goldline Group – a multi-diversified conglomerate that has earlier announced property development worth Dh3.6 billion. Tatachar started his career in construction of The National Science Centers in India as an Associate Consultant in 1987 and has worked in design, construction and property development of various asset classes across India, KSA, UAE, Kuwait and Singapore. An MRICS, Tatachar has been associated with multiple organisations. Prior to joining Goldline Properties, Tatachar was the Development Director with Realterm Everstone (an India-US JV) in developing Industrial and Logistics Parks across four states in India. g
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EGBC awards persons, firms for sustainability
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he Emirates Green Building Council (EmiratesGBC), at an awards ceremony on May 13 at Al Murooj Rotana hotel in Dubai, announced the winners of the 2015 EGBC Awards to recognise excellence in sustainability. The most important ‘Green Building of the Year’ award was presented in three subcategories. Sofitel Dubai The Palm Resort & Spa won the ‘Green Hotel’ award. The IRENA Headquarters Building bagged the ‘Green Commercial Building’, beating Abu Dhabi’s Yas Mall. The ‘Green School’ award was given to the American University of Sharjah - Campus
Service Centre. The event’s Guest of Honour was Dr Thani Ahmed AlZayoudi, UAE Permanent Representative to IRENA and Director of Energy and Climate Change at the Ministry of Foreign Affairs. The full list of the award winners are as follows: •The Green Building of the Year was presented in three subcategories: •Green Hotel, awarded to Sofitel Dubai The Palm Resort & Spa •Green School, awarded to American University of Sharjah - Campus Service Centre •Green Commercial Building, awarded to IRENA Headquarters Building •The Green Facility Manage-
ment Organisation of the Year, awarded to Imdaad LLC •The Green Building Material/Product of the Year, awarded to Khansaheb Bionest •Box Industries LLC won the Green Building System of the Year for its Technopark Geochem Office •WSP l Parsons Brinckerhoff won the award for Green Building Research for ‘Outdoor Space Comfort’ •Dubai Carbon won the Training Initiative of the Year award for The Carbon Ambassadors Programme •Muna Alnahdi, from Rochester Institute of Technology Dubai, won the Special Award for Students. g
Conares celebrates 25 years!
Conares, the second largest private steel manufacturer in the region, celebrated 25th anniversary of the company’s operations, at an event in Dubai’s Burj Al Arab Hotel on May 24. On this occasion, Bharat Bhatia, Founder and CEO of Conares announced that the company would increase its manufacturing capacity to one million tonne at its facility in Jebel Ali Free Zone (Jafza). g
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