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VOL. 10, NO. 1 OCTOBER, 2017

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

GULF PROPERTY GULF PROPERTY

29-31 OCT 2017 Ritz-Carlton Dubai International Financial Centre (DIFC) Dubai, UAE.

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GULF PROPERTY completes Nine years! HAPPY BIRTHDAY!

OCTOBER 2017

Dubai sets up Urban Thinkers’ Academy

COVER STORY Mahmoud El Burai CEO, Dubai Real Estate Institute

SPECIAL FEATURES Chinese firm to attract Dh2bn investment in to Dubai’s real estate Dubai South to make living more affordable EXCLUSIVE INTERVIEW Marwan Al Kindi, Dubai Properties Niall McLoughlin, Damac Properties Cyrus Engineer, Shapoorji Pallonji Karim Adi, Swiss Property

Mahmoud El Burai:

Real estate needs re-thinking

25-26 October 2017 ADNEC – Abu Dhabi

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EDITORIAL

Gulf Property is 9 years young!

The longest serving real estate magazine enters its tenth year of uninterrupted publication amid challenging economic landscape. Happy Birthday!

ulf Property turns ten (10) years this month – after completing nine painful years of publication in which we have gone through two major economic slowdowns and including one major economic crash that tossed up the market in 2008-09 resulting in massive job cuts, restructuring.

The effects of the global financial crisis and the aftermath saw the market learn from the mess. Dubai Land Department was quick to put the regulatory framework in place and also find investors to revive stalled projects.

Later, Dubai Land Department had set up its educational arm, Dubai Real Estate Institute – to promote professionalism and best practices in the real estate sector and to help property buyers and investors receive professional services from brokers.

Over the last nine years, Gulf Property not only remained a witnessed these developments, it has also provided important insights into the industry and remained a vanguard for the industry. In a way, we remained a part and parcel of the real estate industry.

Despite the hardship, Gulf Property did not close or stop publishing regular issues. We continued our journey through the thick and thin. We have been blessed with the support of a very few industry supporters who have provided the lifeline with their advertisement budget, namely, Danube Properties, Wasl Properties, Yardi Solutions, Dubai Investments, Damac Properties, Regus, etc.

As Gulf Property enters its tenth year of uninterrupted publication in what could be best described as the most challenging times in the history of real estate in Dubai, we remain committed to our future and will continue to support the real estate sector with objective coverage. Our gratitude to our readers, advertisers and our well-wishers! I take this opportunity to congratulate and thank our small, but efficient team!

– T. Akhtar

COVERSTORY

EXECUTIVEOPINION

Christine Lagarde/IMF 30 Mohanad Alwadiya/Harbor 33 Dhiren Gupta/Mortgage 4C 35

CONTENTS

INTERVIEWS

Marwan Al Kindi says, real estate market needs disruptive ideas to grow 48 Niall McLoughlin says, payment terms are not sustainable 64 Cyrus Engineer says Shapoorji Pallonji will expand in GCC 68 Karim Adi explains why he fell in 72 love with Dubai

NEWSUPDATE

FOCALPOINT

Chinese investment to increase in Dubai’s real estate 36 UAE’s hospitality project value hits Dh262 billion 40

COVERSTORY

Urban developments need rethinking of strategies, says Mahmoud El Burai 42

INTERVIEW

PROJECTNEWS

Sharjah gets Dh24 bn Aljada 56 Union Properties unveils Dh8bn master-plan for Motor City 60 Dubai to host the Dh2.4 billion Floating Venice project 74

REGULARFEATURES Realty Bytes Spotlight

GULF PROPERTY

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

EDITORIAL

EDITOR T. Akhtar editor@panasian1.com

EDITORIAL COORDINATOR Zeba Malik z.malik@panasian1.com

PUBLISHER

T. Akhtar Pan Asian Media MFZ LLC

LICENCE

10 80

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

EDITORIAL AND COMMERCIAL ADDRESS

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Gulf Property

REALTYBYTES

95% Dubai residents feel safe: Police

ore than 95 per cent residents said they feel safe and secure through a survey conducted by Dubai Police. Dubai Police conducted a survey in which 95.3 per cent of the city’s residents said that they felt secure, with 97.8 per cent of those surveyed stating that they trust the integrity of the police department. There are few major metropolitan cities in the world where one can wander the streets day or night and feel completely secure. Dubai, however, has always felt safe thanks to a top-class police force and low crime rate, and now we have the stats to prove it. The study included a sample size from many of the 200 nationalities found in the emirate such as Arabs, Asians and other foreign nationals. The overall feeling of security has been attributed to the “unique model” that the UAE has implemented in establishing good relations between the many communities of varied races, nationalities and social backgrounds that call the country their home. A Dubai Police statement went on to praise the police’s efforts in actively protecting the rights of individuals and organisations, and added that the country has not experienced religious or ideological conflicts, despite the presence of so many nationalities. g

Gulf Property

UAE travel & tourism spend to hit $56bn

Tourism sector will continue to drive Dubai’s economy

pending within the UAE’s travel and tourism sector is expected to rise steadily over the next five years and reach over $56 billion in 2022 as new mega projects come to market, a recent analysis conducted by the Dubai Chamber of Commerce and Industry showed. The analysis, based on new data from Business Monitor International (BMI) and the World Travel and Tourism Council (WTTC) revealed that total spending in the sector is predicted to increase 4.5 per cent year on year in 2017 to reach over $42 billion. Growth within the UAE’s travel market growth will likely be supported by several recently announced projects, including Marsa Al Arab, a $1.7 billion mega tourist resort, the new IMG Worlds of Legends theme park, a Formula One theme park at Dubai’s Motor City, Six Flags at Dubai Parks and

At A Glance $42 billion

UAE’s tourism spend expected to reach in 2017

$56 billion

UAE’s tourism spend expected to reach in 2022

$43 billion

value of UAE’s travel and tourism sector in 1026

Resorts, in addition to a number of planned shopping malls and cultural venues. These mega projects fall in line with Dubai's preparations to host Expo 2020, diversify the emirate’s mix of leisure and entertainment offerings, and accommodate 20 million visitors in the city by 2020. The data found that tourism and travel accounted for 12.1 per cent of the UAE’s GDP in

2016, or $43.3 billion. Leisure travel spending amounted to $31.31 billion, or 77 per cent of UAE’s total tourism spending in 2016, while business travel accounted for 23 per cent, or $9.13 billion. Leisure travel spending increased at a compound annual growth rate of over 9 per cent since 2011, and business travel spending rose at a rate of 10.83 per cent over the same period. The data also revealed that a total of 14.9 million leisure and business travellers visited the UAE in 2016, representing a 4.9 per cent increase from the previous year. The number of visitors to the country has been growing steadily in recent years as source markets have diversified. The Middle East was identified largest source of visitors, with a share of 28.6 per cent in total arrivals during 2016, followed by the Asia Pacific region at 25.7 per cent, and Europe at 17.1 per cent. g

REALTYBYTES

Dubai’s $71m water project on track

Events to draw $44 bn in tourism value in UAE

irtual reality concerts and matches, augmented reality apps, and immersive audio-visual will catalyse US$44 billion in UAE tourism receipts by 2020, and transform the live entertainment and megaevent experience for millions of people across the Middle East and Africa, said a report. With the UAE enhancing its role as a global leisure, tourism, and entertainment hub, it is set to welcome 25 million visitors for Expo 2020 Dubai, and draw US$44 billion in international tourism receipts by 2020, or 51 percent growth from 2016, according to BMI Research. Thanks to mega-projects such as the UAE’s Bluewaters Island, Expo 2020 Dubai, and the Warner Brothers theme park, the Middle East and North Africa’s US$4 trillion construction market is the world’s fastest-growing, according to reports by BMI Research and PwC.

At A Glance

US$4 trillion value of the construction market in Africa

US$44 billion value of tourism receipts by events sector by 2020

US$2.8 billion value of the Middle East’s audio-visual market

"The Middle East and North Africa is one of the world’s fastest-growing live event markets. The UAE has the potential to leapfrog established European and North American markets in using the latest audio-visual innovations to transform the visitor experience,” said Dan Bolton, President of the International Live Events Association Middle East.

As a result, the Middle East’s professional audio-visual market is one of the world’s fastest-growing at 15 per cent annually, reaching US$2.8 billion in 2016, with the UAE as the region’s largest at US$1.2 billion in 2016, according to a report by InfoComm International Experts agree that thanks to the Middle East and North Africa’s ICT infrastructure, along with the region being the world’s second-fastest market in smartphone adoption, according to industry group GSMA, virtual and augmented reality can transform the live event experience. “With the Middle East and North Africa’s strong investment and innovative mindset, Expo 2020 Dubai and Morocco’s potential hosting of the 2026 World Cup present strong opportunities to showcase how virtual and augmented reality can deliver immersive mega-event experiences. g

Dh260 million ($70.7 million) project to upgrade water transmission networks in Dubai is progressing well, according to the head of Dubai Electricity and Water Authority (DEWA). Saeed Mohammed Al Tayer, Managing Director and CEO of DEWA, said the plan to add pipelines with a total length of 46 kilometre in various parts of Dubai was nearly a third completed. He added that the project is expected to be completed by May 2018. "To date, approximately 13 kilometres, which is 30 per cent of the project, has been completed. “The project includes the extension of main water larger pipe to increase water flow between Sheikh Mohamed bin Zayed Road and Emirates Road along Hessa street and Al Qudra road, and along the Jebel Ali to Al Hebab road towards Emirates Road in the areas between Dubai to Al Ain road and Al Qudra,” he said. The project also includes an extension of the main water pipeline at Al Lusaily up to the junction between Al Ain road at Jebel Ali and the Al Hebab road. The project also contributes to increasing water flow in Al Warqa and Palm Deira, ensuring the continuity of water access, and raising the pressure in the network, to support future projects. g Gulf Property

REALTYBYTES Emirates Glass books works worth Dh100 m

mirates Glass, a subsidiary of Dubai Investments and one of the largest processors of flat architectural glass in the region, said it has won mega projects worth Dh100 million from the UAE, Kuwait and Saudi Arabia. The company is currently executing more than Dh50 million worth of contracts in GCC countries and has also won contracts for a number of projects across Asia, a company statement said. The new project wins include high performance, energy-saving, reflective coated glass products for the Ministries Complex in Kuwait, the first-ever greenhouse being constructed in Dubai named as The Quran Park, the Enterprise Command and Control Center – EC3 of Roads and Transport Authority, Dubai and ITCC Tower and Maad Tower in Saudi Arabia. Within the UAE, the company has also won glass contracts for Akoya Villas, Nad Al Sheba Villas, Dubai Hills Villas, Oud Al Mateena Villas, 1017 Yas West, Al Yaher, Tiara United Tower, Suites in the SKAI, Hathboor Tower, Mamsha Al Saadiyat, Adnoc Complex, Manazil Terhab Hotel, Ajman City Center and a host of other developments. g

Gulf Property

UAE is No 1 in real estate investment UAE remains the most attractive country for real estate investment, according to a survey

he UAE has retained its number one position as the most appealing country to invest in real estate in the world for GCC residents, while Dubai is the most preferred city, according to new research. The latest Real Estate Barometer study, conducted in partnership between YouGov and Cityscape Global, asked GCC home buyers and real estate investors where they feel most comfortable investing their money globally and 45% of respondents cited the UAE, up from 42 per cent in 2016, while 63 per cent chose the UAE from among countries in the Middle East specifically Collectively, 69 per cent of respondents chose Dubai as the ‘go to’ city for real estate investment, with two thirds (66%) expecting the impact of Expo 2020 Dubai to increase property buyer interest in the UAE. The research has been revealed ahead of Cityscape

Global, the annual barometer for the real estate industry in emerging markets and one of the largest, most influential property events globally, which returns to the Dubai World Trade Centre from Monday 11 to Wednesday 13 September. Tom Rhodes, Exhibition Director, Cityscape Global, said: “The research findings give us a great insight into the current market conditions and certainly help us and our exhibitors to set forecasts for upcoming real estate investment expectations. “With on-site sales permitted for UAE-based projects the first time at Cityscape Global this year, we anticipate a lot of interest from investors who will be able to attend the event to capitalise on attractive price options and make informed purchasing decisions directly on the show floor. More than half (59 per cent) of respondents who intend to buy a property in the next year prefer to buy in the

GCC, with the average GCC budget sitting at US$717,000, compared to the average global budget of US$561,000. The most highly sought-after residential property to buy is the two to three bedroom apartment; 53% of respondents opted for this unit size. Kailash Nagdev, Managing Director for YouGov in the Middle East region said, “The annual Real Estate Barometer is designed to track Middle East property market sentiment to help the industry expand with its future investors in mind. “The 2017 study indicates a minor decline in sales and rental property prices in the UAE but overall real estate investment sentiment for the UAE looks positive. Respondents are telling us a strong regulatory framework, good supply of residential properties at different price points and the upcoming Expo 2020 will be the key drivers of a healthy outlook for Middle East real estate.” g

District 2020 to lure visitors post Expo

ubai Government said, it will transform the World Expo 2020 site to a permanent destination under a new legacy branding: District 2020. The district will include 65,000 square metres of residential space and 135,000 square metres of commercial space, in a location that will be home to world-class innovation, educational, cultural and entertainment facilities as well as a conference and exhibition centre. It will facilitate modern ways of living, blending work and recreation in an ecosystem that fosters closer connections both physically and digitally. “The world-class district will be an integral part of the legacy of Expo 2020 Dubai from Q4 2021, and support the acceleration of the emirate’s development. It will be a long-term economic contributor for the UAE as a home for innovators, original thinkers and pioneers, creating jobs and attracting investment,” a government

65,000 sq. m. of residential space will be available

statement said. Reem Al Hashimi, UAE Minister of State for International Cooperation and Director-General of Dubai Expo 2020 Bureau, said, "Back in 2013 when we won the bid to host this great event, we set ourselves two clear objectives in line with our leaders’ vision, which were to stage a World Expo that would amaze the world and build a lasting legacy with a global destination that offers a new alternative for urban living. “Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, instructed us to build a

site for a permanent legacy and therefore we had to think of ways to capitalise on what was being built for Expo as well as for post-Expo. "We have created District 2020 to achieve that goal. It has been a key part of our planning from the very start, not just for our Legacy Team but the entire Expo organisation." District 2020 has been designed to be environmentally progressive and sustainable, reflecting the changing demands of the modern world. Every building will meet or exceed the rigorous LEED Gold standards in sustainable construction. It will be home to iconic structures such as Al Wasl Plaza, the Sustainability Pavilion, which will live on as a Children and Science Centre, and the falcon-shaped UAE Pavilion. They have been designed by some of the world’s most renowned architects. Marjan Faraidooni, Senior Vice President of Legacy Impact and Development at

REALTYBYTES

Expo 2020 Dubai, said, "District 2020 will continue to carry forward Expo 2020’s mission of connecting people, offering a new urban experience. It will be at the cutting edge of modern working and living, combining places to work, rest and explore to create an ecosystem that stimulates connections, inspires creation and drives innovation, creating value for all those who come here. "It will also be among the best connected districts in the world, within an hour of the centres of Abu Dhabi and Dubai, next to what will be the world’s largest airport [Dubai World Central], the Jebel Ali Port, and with world-leading digital infrastructure including 5G." The conference and exhibition centre is also being developed by Dubai World Trade Centre to build on Dubai’s standing as the Middle East’s premier destination for major events, conferences and exhibitions. District 2020 will benefit from the thousands of connections being made as visitors from around the region, and the world, come together to share ideas and create opportunities. One of the goals of District 2020 is to contribute to the drive towards a knowledgebased economy fuelled by innovation. Expo 2020 Dubai will be a celebration through its theme of ‘Connecting Minds, Creating the Future’ that provides a platform to encourage creativity, innovation and collaboration. This is underpinned by Expo’s three pillars of Opportunity, Mobility and Sustainability. g Gulf Property

REALTYBYTES

ENOC awards $1bn refinery contract

ubai's Emirates National Oil C o m p a n y (ENOC) Group has awarded the final contract of three packages that comprise its $1 billion refinery expansion programme to Overseas-AST. The Engineering, Procurement and Construction (EPC) contract includes the construction of various interconnecting pipelines between the refinery’s processing units, the storage tanks and the berth facilities within Jebel Ali Free Zone (JAFZA). The pipeline will carry jet fuel, isomerate, and light and heavy naphtha and run in a dedicated pipeline corridor through JAFZA, it added The refinery expansion project was announced in September 2016 with the main EPC contract for design and construction of the refinery’s new ancillary units awarded to Technip Italy. The second EPC package was awarded earlier this year to Rotary Engineering Fujairah to construct 12 new storage tanks. The expected date for commercial production is the fourth quarter of 2019. Once the expansion project is completed, the production capacity of the refinery will go up to 210,000 barrels per day (bpd) from the current 140,000 bpd, enabling ENOC to meet the needs of the market and the wider industry. g

Gulf Property

Dubai’s office rents continue to decline

ubai’s commercial occupier market saw lacklustre performance in 2016 as a result of slower economic growth. The strong US Dollar since May 2014 has proved to be a strong headwind for Dubai’s economy, said a report by Knight Frank. “However, despite interest rate hikes by the Federal Reserve, the US Dollar has depreciated rapidly in the first seven months of 2017 (6%), registering the longest period of deprecation since 2010,” it said. “Given the Dubai’s reliance on foreign consumer spending, this is likely to provide a boost to economic growth and may encourage firms to resume capital expenditure. This in turn may lead to increased employment which would translate into additional demand for commercial offices. Market activity has remained relatively subdued in the first half of the year. On average office

rents across Dubai fell 4.5 per cent in the year to Q2 2017, with the performance of prime and secondary markets continuing to diverge over the same period.” Dubai’s GDP increased by 2.9 per cent in 2016, down from 4.1 per cent in 2015. Lower oil prices, higher interest rates and a strong US Dollar have underpinned the slowdown in GDP growth. As the economy adjusts to the new norm in oil prices and diversifies in line with Dubai Plan 2021, the slowdown in GDP growth is expected to bottom out in 2017 and begin to strengthen in 2018. Employment is forecast to grow 1.63 per cent in both 2017 and 2018. Business sentiment remains upbeat with the Purchasing Managers Index remaining positive at 55. Prime rental performance remained relatively stable with average rents shifting 1.3 per cent higher in the three months to June 2017.

Demand in these locations remains high due to limited new supply, Freezone Status, international regulatory standards and the quality of local infrastructure. “Vacancies in DIFC remains low with DIFC phase I registering vacancy at 1 per cent as at Q2 2017. However even within these prime locations, for periphery offerings absorption rates remains low. Although, as the master plan is finalised we expect this absorption rate to steadily increase as the “core” expands. This trend maybe further heightened with the move towards mixed use developments which encourage urban living by linking business, cultural and lifestyle environments,” it says. Grade A office market rents, which includes Downtown Burj Dubai, Sheikh Zayed Road and the Trade Centre District, fell 4.4 per cent year-on-year and 2 per cent over the last three months. g

REALTYBYTES

Bahrain has $58bn worth of projects

whopping US$26 billion worth of real estate projects and a further US$32 billion worth of infrastructure projects will be executed in the Kingdom of Bahrain, as the Gulf country undertakes massive drive to revamp its economy. Bahrain’s real estate sector is witnessing rapid expansion due to growth in demand for residential and retail development. The Bahrain Economic Development Board (EDB)’s economic quarterly report revealed growth in the sector reached 4.5 per cent in the first quarter of 2017, contributing over US$1.7 billion to the economy. Real estate transactions in Bahrain grew by 15.2 per cent in the first quarter of 2017, reaching a total value of US$770 million, an 8.1 per cent jump compared to the same quarter in 2016. The retail and hospitality sector

At A Glance $32 billion value of infrastructure projects in Bahrain

$26 billion

value of upcoming real estate projects in Bahrain

$58 billion

value of all projects in the pipeline in Bahrain

$770 million

value of real estate transactions in Q1 in Bahrain

also witnessed rapid growth, while the hotels and restaurants sector emerged as the fastest growing sector during the first quarter of this year, recording a 12.3 per cent year-on-year real rate of ex-

pansion. According to statistics published by the Ministry of Housing, the number of residential applications pending allocation of units currently stands at 55,000 and is estimated to grow by 5,000 each year, and are driving the high demand for residential units in the Kingdom. Additionally, the influx of visitors to Bahrain in recent years has also contributed towards a growing demand for tourism and retail facilities. In 2016, the total number of arrivals to Bahrain increased by 6 per cent from 2015 to 12.2 million visitors. The Kingdom welcomed 5.6 million tourists to Bahrain in the first half of the year, according to Bahrain Tourism and Exhibitions Authority (BTEA), representing a 14 per cent increase from the first half of 2016. Housing developments, both social and private, have increased in recent years

and the Kingdom is currently witnessing more than 17 housing projects, which include some private projects. The Kingdom is also home to the Avenues Mall, a 83,700 square metres building to be opened later in the year, as well as other retail developments including Bahrain Marina and mixed-use development areas such as Bahrain Bay and Water Garden City. Khalid Al Rumaihi, Chief Executive of Bahrain EDB, said: “Recent figures demonstrate the resilience of Bahrain’s real estate sector and highlight the increasing demand for housing, not only in the Kingdom but across the wider region. Strong growth in this sector has been supported by the implementation of economic and legislative reform and forward-thinking policies such as the public private partnership model by the Ministry of Housing and the recently issued Real Estate law.” Bahrain has a pipeline of large-scale infrastructure projects across a wide range of sectors valued at US$32 billion, which will support growth within the real estate market and help maintain robust economic growth throughout the Kingdom. In addition to developing the necessary hard infrastructure, Bahrain is implementing soft infrastructure such as smart legislation, enabling investors to realise value from their capital. A new regulation has also been developed in consultation with the private sector to specifically support growth in the Kingdom’s real estate sector. g Gulf Property

REALTYBYTES

Emaar unveils 17 Icon Bay

maar Properties has launched a 43storey residential tower, 17 Icon Bay – at the heart of the Island District of Dubai Creek Harbour, the 6 square kilometre megadevelopment only 10 minutes from the Dubai International Airport, which will also feature the Tower – a super tall tower surpassing Burj Khalifa – that will push the upper limit of skyscrapers to nearly a kilometre in height. The project, 17 Icon Bay, stands out for the direct views it offers of Burj Khalifa, the global icon; Dubai Creek Tower and the Ras Al Khor Wildlife Sanctuary, protected by the UNESCO Ramsar Convention and home to over 67 species of water birds. The serene setting of the 17 Icon Bay homes is complemented by a focus on wellness and living in harmony with nature through family-oriented spaces including walking trails by a dense grove of trees, children’s play areas, a swimming pool, landscaped leisure deck, multi-function room and modern fitness facilities. Developer Emaar Properties, has, however, did not reveal the value of the project. With about 300 apartments featuring 1, 2 and 3 bedrooms, 17 Icon Bay is strategically located by the tip of the Central Park neighbourhood, and offers effortless access to a wide range of retail and leisure facilities that are set along a 4.5 km-long Creek Boardwalk. observation decks. g

Gulf Property

Emaar to build 10m sq.ft. waterfront

maar Properties said, it will develop about 10 million square feet of waterfront residences and a brandnew hotel project at Dubai Harbour, the 20 million square feet destination developed by Meraas. “Emaar’s residences and hotel development will have a waterfront location in Dubai Harbour, between the Jumeirah Beach Residences and The Palm Jumeirah. Drawing on its proven strength in developing and handing over high quality residential and hospitality projects, Emaar will focus on building a series of elegantly designed high-rise residential apartments overlooking the Arabian Gulf,” an Emaar spokesperson said. Emaar’s hospitality project will be operated by its Address Hotels and will include branded residences. It will add value to destination through an array of luxurious

amenities, restaurants, wellness and leisure facilities. Abdulla Al Habbai, Group Chairman of Meraas, said: “Developments such as Dubai Harbour are central to our efforts to define Dubai as a preferred place to live, work and visit and include several unique features that will create incremental value for the local economy and drive growth in the maritime tourism sector. We are confident that our collaboration with Emaar will reinforce our mission of creating a worldclass destination that appeals to people around the globe.” Emaar’s new residential project will bring incredible value for residents as they become part of one of the region’s vibrant destinations that features the upcoming Dubai Lighthouse, a modern cruise port with two terminals and the Middle East and North Africa region’s largest marina. The residential

neighbourhood developed by Emaar will be part of an integrated tourist destination, with the masterplan set to integrate Sky Dive Dubai, Dubai International Marine Club and Logo Island under Dubai Harbour. Mohamed Alabbar, Chairman of Emaar Properties, said: “Dubai Harbour will be one of the vibrant leisure and tourism hubs of the city. It adds to the track-record of Meraas in delivering unique destinations. Adding to Emaar’s real estate business, the residences and hotel in Dubai Harbour will create significant long-term value for our shareholders.” Dubai Harbour will feature a multi-modal transport infrastructure comprising a road network in addition to air and sea connectivity. There will also be a futuristic public transport system, water stations, pedestrian bridge, jogging and cycling tracks. g

REALTYBYTES

Abu Dhabi developers to merge

Aldar sells Dh400m affordable homes

bu Dhabi-based Aldar Properties said, it has sold out the first phase of its new waterfront development Water’s Edge on Abu Dhabi’s Yas Island during Cityscape Global, worth Dh400 million. Talal Al Dhiyebi, Chief Development Officer of Aldar Properties, said: “Coming to Cityscape in Dubai and selling out Water’s Edge on the global stage is a huge success for us, and shows that the Abu Dhabi real estate market remains attractive to property buyers from around the world.” Earlier Aldar Properties launched Water’s Edge – a Dh2.4 billion, 2,255 home master planned development. With prices starting from Dh480,000, Aldar released one building for sale at Cityscape Global in Dubai last month. Water’s Edge offers purchasers of all nationalities the opportunity to invest in a genuine waterfront development on Yas Is-

land. The 13 apartment buildings will be complemented by private courtyards with landscaped areas, pools, multipurpose courts and a mosque. In order to support Aldar’s recurring revenue strategy, Aldar will incorporate a number of Water’s Edge homes into its leased residential portfolio. Water’s Edge is situated on Yas Island’s eastern shores, and the majority of units have full or partial views over water. Residents will enjoy Water’s Edge’s wide choice of exercise and recreation facilities, retail, restaurants and cafes, in addition to Yas Island’s abundant attractions that make it the most exciting destination in Abu Dhabi. The location of Water’s Edge is adjacent to the upcoming Sea World theme park, and only a five minute walk from Yas Mall, Ferrari World and the Yas Marina Circuit. In addition, Yas Island is also home to seven hotels, Yas Beach, and Yas

Links Golf & Country Club. Yas Island is a destination for major Government investment, with the upcoming Dh12 billion South Yas development, incorporating the new, state of the art twofour54 campus being developed by Aldar, which will bring 10,000 media and entertainment industry professionals to the island. The early works for Water’s Edge will commence this December, with the aim of beginning phased handovers between June and December 2020. The development is expected to build on the success of Aldar’s The Bridges, which launched and sold out in the second quarter of 2017, and Meera, which is on track to complete during Q3 2018. Aldar currently has more than 3,500 residences under development on Yas Island, including West Yas, Mayan, Yas Acres and Ansam, with Ansam due for handover later this year. g

wo Abu Dhabibased developers Eshraq Properties Company and Reem Investments said the companies are in advanced negotiations for a merger to create the second largest listed real estate developer in the emirate of Abu Dhabi. The move reflects a growing trend of consolidation due to challenging market conditions. Earlier, Aldar Properties and Sorouh Real Estate merged – the largest such consolidation in the UAE’s real estate. Reem was established in 2005 and is considered one of the largest and most successful real estate companies in Abu Dhabi. It also owns prime development land in Abu Dhabi. The Board of Directors of Eshraq and Reem believe that the potential transaction is expected to be beneficial to the shareholders of both companies resulting in synergies derived from integrating their operational and financial resources and as well as combining their management experience and expertise. The potential transaction remains subject to a number of conditions, including the final agreement of specific deal terms including price as well as obtaining the required regulatory approvals. Eshraq is being advised by Shuaa Capital PSC and Reem Investments is being advised by First Abu Dhabi Bank. g Gulf Property

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Azizi to unveil two projects at Meydan

zizi Developments said, it will announce two new mega developments at Meydan One in the last quarter of this year. The mega projects will be four times the size and value of its most ambitious development till date, the Azizi Riviera located in the prestigious Meydan One district. The company, however, did not give any details of these projects and the development value. Inspired by the French Riviera, Azizi Riviera is collectively made up of 69 mid-rise residential buildings of 13,000 units of studio, one-bedroom and two-bedroom apartments, a mega integrated retail district and a four and a five-star hotel. The project commenced construction in July this year with the completion of phase one and two scheduled for the second half of 2018. The company’s current portfolio involves more than 100 projects worth Dh18 billion. Farhad Azizi, CEO of Azizi Developments, said: “We are seeing a growing demand for upscale residential real estate in prime locations across the city, and Azizi Developments is committed to meeting this demand by delivering world class unique community lifestyle projects with flexible payment plans for direct buyers and investors.” g

Gulf Property

Azizi reports Dh1.3 bn sale at Cityscape

Azizi Riviera will be part of the Meydan One master plan

zizi Developments, a fast growing Dubai real estate developer, said, it has recorded sales of US$354.22 million (Dh1.3 billion) within three days at the Cityscape Global 2017. This has been the most successful edition of the event for Azizi Developments till date. “On day one of Cityscape itself, the entire phase one and 50 per cent of the inventory of phase two of the Dh12 billion waterfront project Azizi Riviera was sold out,” the company said in a statement. The company had earlier launche the Dh3 billion, Phase II of its Dh12 billion waterfront project – Azizi Riviera – at Cityscape, along with an attractive offer of eight per cent net rental guaranteed return for buyers for three years. The Phase II comprises 17 buildings with more than 4,000 units sprawled across

At A Glance

Dh12 billion

value of Azizi Riviera project

Dh3 billion

value of the Phase II of Azizi Riviera project

Dh1.3 billion

value of the projects sold out at the Cityscape Global

Dh18 billion

value of the Azizi Development’s real estate portfolio in Dubai

Meydan One, one of Dubai’s most prestigious and strategically located neighbourhoods,” a statement said. Inspired by the French Riviera, the project collectively is made up of 69 mid-rise residential buildings of 13,000

units of studio, one-bedroom and two-bedroom apartments, a mega integrated retail district and a four and a five-star hotel. Farhad Azizi, CEO of Azizi Developments, said: “The success we have seen at the Cityscape Global 2017 is unprecedented and we are extremely proud of our performance at the exhibition. Azizi Developments is committed to contributing to the development of the city of Dubai.” The developer had also completed a luxury residential property on The Palm Jumeirah - Azizi Royal Bay this year, with 90 stylishly designed sea-facing apartments including 58 one-bedroom, 30 two-bedroom and two 3-bedroom penthouses. Azizi’s project portfolio is worth Dh18 billion and more than 100 projects at various stages of development in the UAE, including Dh12 billion Azizi Riviera project. g

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DP World to buy Drydocs & Maritime World for $405 million

Acwa to build Dh14b Dubai solar project

ubai Electricity and Water Authority (DEWA) has awarded a US$3.86 billion (Dh14.2 billion) contract to a Saudi-Chinese consortium of ACWA Power and Shanghai Electric to build the largest single-site Concentrated Solar Power (CSP) project in the world. The consortium bid the lowest Levelised Cost of Electricity of US$0.73 cents per kilowatt hour (kW/h). The project will have the world’s tallest solar tower, measuring 260 metres. The power purchase agreement and the financial close are due to be completed shortly. The project will be commissioned in stages, starting from Q4 of 2020. The CSP project, which represents the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park, will generate 700MW of clean energy to support Dubai’s electricity grid. The project is considered an integral part of the emirate’s

Clean Energy Strategy 2050. His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, highlighted the UAE’s model for sustaining a green economy based on environmental sustainability and clean energy. The UAE has a clear strategy for implementing and further developing this model to maximise its benefits, in addition to investing in infrastructure, building capabilities, he said. “We have made steady progress in realising the goals of Dubai Clean Energy Strategy 2050 that was launched as part of our objective to transform Dubai into a global clean energy and green economy hub. The carbon footprint of Dubai will be the lowest in the world by 2030,” said Sheikh Mohammed. “We are proud that by demonstrating their capabilities, our local talent have proved that they are ready to assume respon-

sibility,” he added. His remarks came as DEWA awarded the contract for the Dh14.2 billion CSP project based on the Independent Power Producer (IPP) model. Saeed Mohammed Al Tayer, MD & CEO of DEWA said: “This achievement greatly boosts our objectives and positions us as one of the leading countries of the world in terms of clean and renewable energy. The Dubai Clean Energy Strategy 2050 aims to increase the share of clean energy in Dubai’s total power output to 7% by 2020, 25% by 2030, and 75% by 2050.” This is the largest singlesite solar park in the world, based on the IPP model. It will generate 1,000 MW by 2020 and 5,000MW by 2030. The 13MW Phase I became operational in 2013. The 200MW PII was launched in March 2017. The 800MW PIII will be operational by 2020. g

lobal port operator DP World said, it will acquire Maritime World – the 100 per cent owner of Dubai Maritime City (DMC) for $180 million and buy 100 per cent stake of Drydocks World for $225 million, totalling US$405 million. DMC is a world class maritime service facility and industrial business zone in a prime location of central Dubai and adjacent to DP World’s Port Rashid. It is a maritime focused commercial and industrial park, which extends to 2.3 million sqm on a man-made peninsula and provides Economic Zones World FZE additional land as an alternative to the highly-occupied Jebel Ali Free Zone. Drydocks World is a market leader in the ship repair business with the largest ship repair yard in the Middle East. The business delivers stable ship and rig repair revenues and has specialist capabilities in niche ship newbuilds and conversions. Drydocks’ acquisition will integrate well into P&O Maritime, which is DP World’s maritime services subsidiary. The acquisitions are expected to be earnings accretive from the first full year of consolidation. Both acquisitions are subject to the debt restructuring process. g Gulf Property

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Five Holdings repays Dh1.1bn loan

ive Holdings, the real estate development and hospitality group, said, it has repaid its Dh1.1 billion (US$300 million) syndicated finance package 13 months ahead of schedule. The international syndicate for the dual Islamic and conventional financing was used to support the construction of its Five Palm Jumeirah and Five Jumeirah Village Dubai projects. Five Palm Jumeirah opened its doors in March 2017 while Five Jumeirah Village Dubai will open in Q4 2018. Kabir Mulchandani, Group Chairman and CEO of Five Holdings, said, “Five Holdings’ ability to repay our syndicated finance package early is a result of our strong cash flows and growing confidence in our flagship property, Five Palm Jumeirah Dubai.” The syndicated financing was backed by seven financial institutions, including Abu Dhabi Islamic Bank (ADIB) and three of the world’s largest banks; Industrial and Commercial Bank of China, Agricultural Bank of China; and Bank of China. Five Holdings in June announced the launch of its new hospitality brand, Five Hospitality LLC. The hospitality arm operates Five Palm Jumeirah Dubai as well three future hotels and residences, worth a total value of Dh7.2 billion (US$2 billion). g

Gulf Property

Danube sells out 75% of 456 units in Bayz Rizwan Sajan (3rd fron left), Chairman of Danube Group, with Anis Sajan (Right), Managing Director, Adel Sajan (Left), Director and Atif Rahman, Partner and Director of Danube Properties, at the launch of Bayz in May this year

anube Properties, which launched eight projects in three years with a combined development value exceeding Dh3 billion, announced that it has sold out 75 per cent of the Bayz project at Business Bay, within four months of the project’s launch. Bayz was launched on May 14, 2017, during Ramadan. “We have sold out 340 apartments of the 456 residential units of Bayz within four months of the project’s launch,” Rizwan Sajan, Founder Chairman of Danube Group and Danube Properties, said. “Selling 75 per cent of a project during Ramadan and summer holidays is not an easy matter and it reflects the success of Danube Properties’ teamwork and our strong appeal of the benchmark 1 per cent monthly payment scheme to the

end-users – who can now look forward to buying a property in Dubai with their limited monthly household income. “Our success in selling out projects – one after the other – reflects the growing demand for affordable luxury homes, the game-changing 1 per cent monthly payment plan and timely delivery of properties. All these factors help families with an average household income of Dh15,000-Dh20,000 to plan and buy their dream homes in Dubai.” Studio units in the 29storey tower with views of Burj Khalifa and Dubai Canal, have been priced at Dh650,000 and comes with a monthly payment plan of Dh6,490. This is the lowest price per unit within the Business Bay – the new business district of Dubai. Construction of the project, which is at tendering stage, is scheduled for completion

in 2019 with works expected to start in 2017. Each of the Bayz apartments comes fully furnished with marble flooring in the living and dining area, modular kitchen, exquisite Spanish tiles, and topnotch finishes. Furthermore, every home will include a European technology enabled convertible sofa that makes way for a bed- tucked into the wall. The announcement comes within less than a month after the developer completed Glitz I and Glitz II with a combined development value of Dh350 million within two years of the sales launch. Owners of all the 302 soldout units will soon start taking deliveries of their units as Danube prepares to welcome its customers – happy homeowners. Since making its foray in real estate market in 2014, Danube Properties has launched 3,217 units split in to eight projects. g

Eighty-Three hotels to open in the GCC in 2018

s many as 83 new hotels set to open in the GCC in 2018 – part of the 200 new hotel projects in the pipeline, according to a new report which shows that the hotel market in Saudi Arabia is set to reach $4.29 billion in 2017. “The region currently has more than 200 hotel projects in the pipeline, including 164 hotel projects in Dubai, 25 in Abu Dhabi and 12 in Ras al Khaimah seen as the busiest areas for hotel construction in the UAE. Of these properties, 83 will open next year,” said the report. Some of the most anticipated hotel openings include Dubai’s Rosemont Hotel and Residences, Curio Collection by Hilton (730 rooms) and Fairmont Abu Dhabi Marina Hotel & Residences (812 rooms). “The spotlight is firmly on the hospitality industry in this region, particularly the UAE,” commented Ray Tinston, Portfolio Director of the dmg events Middle East, Asia and Africa hospitality portfolio which includes The Hotel

Dubai to see the opening of 164 hotels in the next few years, the report says

At A Glance

$725 billion value of construction projects in Saudi Arabia

$350 billion

value of urban construction projects in Saudi Arabia

$290 billion value of the transport, industrial and utilities projects in Saudi Arabia

Show, The Leisure Show and the Middle East Hospitality Awards – which have all run in Dubai this week to massive success. Riyadh is Saudi Arabia’s busiest city for hotel construction with almost 50 hotel projects underway, the report says. Riyadh leads the hotel boom closely followed by Jeddah. Across the country, the exclusive industry report reveals that 170 hotels and 60,395 rooms are currently in various stages of the con-

struction pipeline. A BNC report found there are currently a massive builds underway 4,025 throughout the Kingdom, worth a combined US$725.8 billion. Almost US$350 billion of that value can be found in urban construction, where over half (2,804) of those projects are taking place. Saudi’s oil and gas industries are experiencing a US$88.4 billion injection, while ongoing transport, utilities and industrial developments have been valued at more than US$290 billion total. “Over the last five years Saudi Arabia’s hotel market value has grown steadily by 4.2 per cent to 6.4 per cent,” commented Nikola Kosutic, Research Manager at Euromonitor International. “We are expecting to see similar growth rates over next five years, with CAGR estimated at 4.5 per cent.” One of the key factors in driving this growth is the Government’s Saudi Vision 2030 which has sparked a construction boom across the country. g

REALTYBYTES

Imkan inks contract for Dh2b Makers District

mkan, a real estate developer, said it has appointed Ramboll, a leading global engineering, design and environmental consultancy firm, as Lead Consultant for the first phase of its Dh2 billion Makers District development. The Dh120 million contract marks the official launch of Makers District, an 18-hectare masterplan development on Reem Island, Abu Dhabi designed as a waterfront community that cultivates creativity through residential, hospitality, commercial and retail space. Makers District will address a currently underserved demographic in Abu Dhabi with an aim to become the City’s new heart. Ramboll will provide lead consultancy services on the first phase of Makers District, working alongside international Architects, BIG and MVRDV. With over 1,000 residential units, 11,000 square metres of commercial and retail space and a construction value of Dh2 billion, the scheme is scheduled for completion in 2020. The first units will go on sale by the end of 2017. Design of the The Artery, the first building to be launched in Makers District, was awarded to BIG, an architectural design firm based out of Copenhagen and New York, in April 2017. g Gulf Property

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Nikken to design 172m Reem Tower

eading Japanese architectural and urban design firm Nikken Sekkei and UAE-based National Bonds Corporation (NBC) have recently unveiled Reem Tower, a super luxury residential tower in Abu Dhabi. The 44-story tower will be situated at the north east of Marina Square, the premium waterfront development set on an area of 1.2 million square metres, the first phase of the iconic multi-billion dollar project, Reem Island. The tower will reach almost 172 metres into the Abu Dhabi skyline and have a built-up area of 87,075 square metres with parking for 500 cars. Work on the tower is expected to start next year. It will include 216 two-bedroom apartments; 117 three-bedroom apartments; and two four-bedroom apartments. Reem Tower will encompass a swimming zone with stunning infinity swimming pool, jacuzzi, kids’ pool, water deck, dry deck and lounge. A garden zone will include a kids’ playground, yoga/exercise lawn, garden, pavilion and green corridor. It will also have a fully equipped gymnasium, squash court and sauna. Regional Director of Nikken Sekkei, Dr Fadi Jabri, said: “The project win is testament to Nikken’s comprehensive approach to design, which includes vital contributions from our highly specialised companies.” g

Gulf Property

DI develops Dh4.5 bn worth of projects

ubai Investments, the leading diversified investment company listed on the Dubai Financial Market, has announced that its real estate projects worth over Dh4.5 billion across the UAE are generating investor interest, amidst optimistic trends in the real estate sector in the country. Dubai Investments is currently developing the Mirdif Hills project in Mirdif through Dubai Investments Real Estate Company [DIRC]. Green Community DIP – West Phase 3 in Dubai Investments Park is being developed by its subsidiary Properties Investment while it is developing Fujairah Business Centre in Fujairah through Al Taif Investment, besides a number of other residential projects. Dubai Investments currently has one of the largest land banks in the UAE, and plans to develop projects with

Dh10.8b Dubai Investments’ asset value

over 20 million square feet Gross Floor Area [GFA] in the next two years. The land banks, owned by DI subsidiaries – DIP, DIRC and Properties Investment, includes nearly 15 million square feet GFA within DIP and at strategic locations across the UAE. Projects, which are either in planning or finalisation stage, include a tower on Sheikh Zayed Road, residential buildings in Al Nahda, Al Barsha, Jumeirah Village Circle, Meydan and Abu Dhabi and a hotel in Bur Dubai, among others. Other projects include expansion of The Market

shopping arcade in Green Community – DIP and two residential buildings in DIP. The current projects will boost Dubai Investments’ market presence in the real estate sector. The company’s assets in the sector constitute over 65 per cent of its total asset mix and is worth Dh10.82 billion, as of June 30, 2017. Mirdif Hills, a mixed-use development, is expected to be fully completed by end of 2018. Spread across 3.9 million square feet, the project comprises 1,500 apartments, a four-star 116-rooms hotel and 128 hotel apartments, and a 230-bed hospital. The Green Community DIP – West Phase 3, has announced the handover of 76 townhouses in July. It is spread across an area of 1.48 million square feet and comprises 210 townhouses. The project is expected to be completely handed over by the end of 2017. g

Nakheel’s project pipeline hits Dh50bn

ubai-based master developer Nakheel last month unveiled projects worth Dh3.2 billion at the Cityscape Global exhibition, part of its current development portfolio worth more than Dh50 billion. Nakheel launched six new residential, retail and hospitality developments at four of its communities in Dubai – including its world-famous flagship master development, Palm Jumeirah, last month. The developer, whose projects currently span 15,000 hectares and accommodate more than 270,000 people, already has more than Dh50 billion worth of projects under way in terms of infrastructure and construction costs. It has awarded construction contracts to the tune of Dh7 billion so far this year, and expects the figure to exceed Dh12 billion by the end of 2017. Nakheel Chairman, Ali Rashid Lootah, said: “As the creator of the globally-fa-

At A Glance

Dh50 billion

Nakheel’s project pipeline

Dh3.2 billion

worth of new projects unveiled by Nakheel recently

21,000

new homes are under development by Nakheel

270,000

people living within Nakheel’s communities

mous, award-winning Palm Jumeirah and other iconic projects that have put Dubai on the global map, the Nakheel name is synonymous with current and future developments that will further enhance the city’s position as a world-leading location for living, leisure, business and tourism.

“We continue to deliver and diversify in line with government goals and our own business strategy. And while development remains our core business, we are focussing on growing our hospitality, retail and leasing divisions by creating a range of new hotels, resorts, F&B destinations, malls and tourists attractions across the city.” Nakheel already has more than 27,000 investors – from all over the world – who have collectively spent over Dh110 billion on 41,000 land plots or built form units since the first properties went on sale in 2002. And there’s been an upturn in sales of ready properties, off-plan properties and land plots over the last few months, with continued interest from existing and new investors, the company said. Nakheel’s projects currently provide homes for over 270,000 people while it has more than 21,000 residential units under construction or in the pipeline. g

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Nakheel assesses Dh363m bid for RIU Hotel

eveloper Nakheel said, it is assessing 10 proposals for the construction of its new, 800-room RIU beachfront resort at Deira Islands, with the lowest bid at Dh363 million. The all-inclusive beachfront resort – a joint venture between Nakheel and leading Spanish hospitality group RIU Hotels and Resorts – is set for delivery in 2020, with a construction contract awarded by the end of 2017. With a total investment value of Dh670 million, the resort is RIU’s first in the Middle East and one of Dubai’s biggest in terms of hotel rooms. It will bring a new hospitality concept to Dubai, offering mid-scale, family-orientated, all-inclusive beachfront accommodation. Located on a prime beachfront plot at Nakheel’s new, Deira Islands coastal city, the resort features seven outlets, three swimming pools, a fitness complex, children’s club and water park. Several other new attractions, including Deira Mall, Deira Islands Night Souk and Deira Boulevard, are nearby. The joint venture is one of 17 projects in Nakheel’s Dh5 billion hospitality expansion programme, under which 6,000 rooms and hotel apartments will be delivered across Dubai in line with the Government of Dubai’s tourism vision for 2021. g Gulf Property

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atured real estate market requires matured thinking from property developers. Gone are the days when buyers used to take whatever used to be imposed by developers, when the market was a sellers’ one. With Dubai’s real estate market maturing further, developers are offering deferred payment plans to attract property buyers as it has turned into a buyer’s market. Gemini Property Developers, a boutique real estate developer, which recently launched a game-changingindustry-first customised payment plan for luxury residential units in the Dh280 million Splendor at MBR City that offers a wider choice for property buyers allowing them to pay for five years after hand-over – has received overwhelming response from the property buyers. Under the innovative set of payment schemes, property buyers have the options to choose from an extended payment plan after paying 50 per cent upon handover and the balance payment on easy installments at their convenience, choice and freedom. This will encourage and help the fixed-income end-users to enter into their dream freehold homes and pay at their ease without undertaking the bank finance cost. “However, the key is to offer the freedom to choose how and they want to pay as it has now become a buyer’s market. Dubai’s real estate market needs out-of-the-box thinking by all stakeholders,” Sudhakar R. Rao, Managing

Gulf Property

Customised payment plan key to success Sudhakar R. Rao, Managing Director of Gemini Property Developers, is changing the game in the UAE’s real estate market with innovative payment plan that is attracting strong buyers’ interest

Director of Gemini Property Developers, says. “That’s why we have devised a game-changing industry-first payment scheme that is designed to offer the best comfort level to our property buyers. This has received a strong response that is also resulting in transactions. “The new payment plan actually removes the burden of payment under stress and allows them to pay as per their convenience and thus eases the pressure on the property buyer. The aim is to reduce the pains of the customers and make sure they remain happy throughout the acquisition phase, while as a developer, we share the burden of the customer’s payment. We want to give them the freedom to pay at their ease, choice and convenience. “Once the buyer moves in to Splendor at MBR City

Dh280m value of Splendor at MBR City

upon paying 50 per cent, it frees up the rents – that could be converted into monthly instalments for five years – or as low as 0.83 per cent per month that could be paid in quarterly instalments – and property buyers can enjoy the benefits of living in their own freehold homes at Sobha Hartland within the Mohammed Bin Rashid City (MBR City) and its central location within the city of Dubai.” Splendor at MBR City is a

collection of 134 modern homes for the upwardly mobile families, who prefer to live at the heart of the city – yet within a sanctuary. “As a customer-centric developer, we are always on the lookout for customer happiness and convenience – quality of finishing, timely delivery as well as ease in handover process. Customised payment plan is an extension of our customer-centric approach in which, we are absorbing the risks of an extended payment plan by offering the customers the convenience and freeing them up having to seek bank finance that comes with high cost,” Sudhakar Rao adds. “For most families, buying a home is the biggest investment and that’s why it needs to fit in to the lifestyle, convenience, and finances of the modern families. g

REALTYBYTES

DSOA reports 5.4% growth in H1, 2017

Schon sells out PI of Dh3.2bn iSuites

chon Properties, a major developer of quality properties in Dubai, announced that it has sold out i3 – the first phase of its mega hospitality project, iSuites at Dubai Investment Park, close to Dubai South, and the Dubai Expo site. i3 is a complex of three mid-rise building, offering 292 high-end fully furnished hotel apartments with a total built-up area of over 220,000 square feet – that have been snapped up by international investors further expanding Schon’s reach and Dubai’s appeal beyond the legacy source markets of the Middle East and Indian subcontinent. Today both sub-Saharan Africa and the Far East are established and growing source markets with close to 30 per cent of total sales from these regions. “Dubai is today a global tourist destination, with infrastructure and attractions that are second to none. With the relentless ambition it’s

known for, under the guidance of our wise rulers, and associated growth potential, the savvy investor is seeking to participate in this success story.” Danial Schon, President of Schon Properties, said. iSuite’s exceptional location, adjacent to the Dubai Expo 2020, a short drive to the Al Maktoum Airport hub as well as Dubai Parks and Resorts attractions, and served by a station on the planned Dubai metro extension has attracted many international hotel operators looking to establish a presence for their brands. Investing in a hotel apartment managed by the top international operators has been an added benefit to investors seeking superior returns. The entire complex includes 21 mid-rise buildings – each having 8 floors – around a manmade swimmable lagoon, the first of its kind in Dubai and a retail promenade offering visitors a plethora of shopping, enter-

tainment and dining options. “Although individual investment in hotel apartments by retail investors is a novel phenomenon, we are pleased to say that we have sold out i3 – the first phase of iSuites, within a short period of time,” Noorul Asif, Chief Operating Officer of Schon Properties, said. Dubai recognises that the next leg of growth is going to come from the affordable segment as it appeals to wider audiences, offers more choice at multiple price points to its visitors and thus structurally protect the sector against cyclical fluctuations at home and abroad. “Positioning iSuites at 4 stars, addresses a gap in the market today. Tourists, especially families are looking for properties in convenient locations, with superior amenities at affordable prices. iSuites delivers and investors recognise that. With i3 sold out, investors are actively registering ahead of our next launch”. Asif said. g

ubai Silicon Oasis (DSO) said, it has achieved a 5.4 per cent growth in revenues in the first half of 2017. The number of companies operating within DSO reached 2,100 at the end of H1 2017. In H1 2017, DSO Authority registered a 23 percent increase in the number of rented spaces in its Data Center while reporting hikes in service fee profits at 28 per cent and community services profits at 18 per cent compared to the first six months of 2016. In February 2017, Sheikh Ahmed bin Saeed Al Maktoum unveiled the commemorative plaque and laid the foundation stone of Silicon Park at DSO – the first project in Dubai to fully implement the smart city concept, spanning 150,000-square meters and set for construction at a cost of Dh1.3 billion. The smart city, scheduled for completion by Q1 2019, will include 71,000square meters of office space, a 25,000-square meter retail expanse, 46,000-square meters of residential area, the 112key Radisson Red DSO Hotel and 59 furnished apartments. DSOA has allocated Dh100 million to provide an advanced technological infrastructure at Silicon Park and to implement smart services in line with Dubai’s smart city initiatives. g Gulf Property

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The First Group takes over TRYP

ubai-based property developer the First Group has taken possession of its second hotel property, TRYP by Wyndham Dubai, marking another significant milestone in its portfolio development strategy. The completion of the 675 upper mid-scale hotel in Dubai’s sought-after Barsha Heights district, also marks the TRYP brand’s debut in the city. The First Group and Wyndham Hotel Group celebrated the soft-opening of TRYP by Wyndham Dubai with a ceremony in September. Danny Lubert, the First Group’s co-founder, said the completion of TRYP by Wyndham Dubai further strengthened his firm’s successful partnership with the world’s largest hotel management firm. “As the world’s largest hotel operator, Wyndham’s management expertise is unsurpassed. With the opening of TRYP by Wyndham Dubai, we are proud to expand our partnership with the company and look toward the future with confidence as we develop properties across Dubai,” he says. The First Group, which has built its reputation on developing high-quality serviced apartments and aparthotels in Dubai, is rapidly expanding its presence in the city’s hotel sector, with multiple properties set to open before Expo 2020. g

Gulf Property

Oriental Pearls offers 7,000 Royal homes

Oriental Pearls is fast-tracking the construction of Royal Pearls’ 7,000 homes

riental Pearls, an upscale property developer in the UAE, has recently launched its Royal Pearls development. Royal Pearls is a 4.6 million square feet community of more than 7,000 premium freehold apartments. Located in Meydan Master Development in Dubai, the community of apartments will suit Dubai’s changing demographics as households grow smaller and the population slants younger. To-date, more than 10 per cent of Phase I is already complete. Oriental Pearls is a locally established Real Estate developer with Chinese roots and of upscale community homes. Its new development also supports the Smart Dubai initiative and the vision of Dubai Government to promote efficient and safe services to the population. Once

complete, the community will serve residents with home automation, smart security, and connected facilities management. Tariq Jarrar, Vice President of Sales and Marketing at Oriental Pearls, said: “In this market, quality is synonymous with connectivity. Dubai has been at the forefront of smart city innovations, offering networked and web-based services years well ahead of other major cities. With the addition of Royal Pearls to Dubai, we hope to extend that legacy into the homes of citizens and residents.” The project is well on its way to completion by 2020, with 10 per cent of Phase I complete. To-date, the enabling work for the first 1,565 apartments is finished and the anticipated completion for all units is scheduled for November 2019.

Royal Pearls is designed as a residential haven. Offering a serene location that joins 20,000 square metres of landscaping and greenery with access to four major highways — Al Ain Road (E66), Sheikh Mohammed bin Zayed Road (E311), Al Khail Road (E44) and Emirates Road (E611), Royal Pearls will cater to the growing number of executives in search of an upscale community defined by quality. At the heart of Royal Pearls, is a unique and ultramodern community centre, surrounded by water features, and a landscaped park. Residents and visitors alike will enjoy assortment of attractions and leisure offerings, cafes, restaurants, a private theatre, day care centre, multifunctional hall, spa, salon, bowling alley, squash courts and a massive fitness centre. g

REALTYBYTES

Dubai Harbour to have 2 cruise terminals

MEASA assets to hit $678 bn by 2020

otal Assets Under Management (AuM) by fund managers in Middle East, Africa, and South Asia region‘s (MEASA) key financial centres (India, South Africa, Nigeria, Egypt and the GCC countries) was US$436.5 billion at the end of 2016, according to a Dubai International Financial Centre (DIFC) report. By 2020, the report projects total AuM to reach US$678.9 billion. Looking specifically at the fund managers in the GCC, they expect to more than double their AuM from US$45.8bn in 2016 to US$110.9 billion in 2020. The report also highlights the massive expansion of the middle class in emerging markets. This has created significant opportunities, with financial sectors that were previously focused on exporting capital now reinvesting that capital in those requiring finance at home. Financial centres in the GCC have a particular opportunity

because there are opportunities for investment both regionally and across the wider African and Asian regions. “Dubai will reinforce its status as the region’s leading financial hub with new legislation and regulation expected to attract inward investment. Fund Managers in the UAE are expected to see their AuM grow from US$1.6 billion in 2016 to US$18.9 billion in 2020,” the report says. Islamic asset management continues to grow, at a moderate compound annual growth rate (CAGR) of 2.44 per cent since 2012 to reach US$58.89 billion in AuM at the end of 2016. Shariah-compliant investments have strong demographic demand but remain under-utilised. Representing just 1 per cent of global Islamic funds, Shariah-compliant pension funds could be a key contributor to the Islamic fund management industry in the years ahead. The region is particularly attractive for fund managers in the alternative investments

sector. In contrast to the perception that investors from the Middle East are heavily concentrated in real estate, these make up just under 20 per cent of assets of HNWIs, among the lowest of any region except Japan and North America. Alternative investments, by comparison, account for more than 15 per cent of total assets – the highest share globally. Arif Amiri, Chief Executive Officer of DIFC Authority, said: “DIFC has identified the wealth and asset management industry as having huge potential for growth over the next five years, which is why we are making a number of enhancements to our platform. “From the DFSA’s recently updated Collective Fund Regime to potential legislative changes on the horizon, we believe Dubai and DIFC can play a central role in attracting assets to the region and preparing it for the future of the financial services industry.” g

ubai Harbour will have a second cruise terminal in addition to the one already revealed in January 2017, according to a statement by Meraas Holding. Dubai Harbour will be the first cruise destination to build two terminals simultaneously which when completed will accommodate 1,200,000 passengers annually. . Each terminal will be approximately 14,000 square metres in size with one single apron of 900-metres. While other ports have multiple terminals, none have so far built more than one at any given time. Meanwhile, in addition to serving the cruise ship industry, Dubai Harbour will feature the largest marina in the MENA region. Once complete, the marina will have 1,100-berths capable of accommodating some of the world’s biggest private yachts. The masterplan for the unique waterfront destination extends over 20 million square feet and includes an 875,000 square-foot shopping mall, an events arena, luxury residences, restaurants, cafes, hotels and a yacht club. It will also feature the Dubai Lighthouse, an architectural marvel stretching 135 metres into the sky with an observation deck offering stunning panoramic views. g Gulf Property

REALTYBYTES

Management shake up at Drake & Scull

rake & Scull International PJSC (DSI) has announced the latest in a series of strategic appointments and changes aligned with the company’s ongoing efforts to restructure the organisation and streamline business operations. The ongoing appointments are key to reinforcing DSI’s leadership in the mechanical, electrical and plumbing (MEP) sector, supported by Tabarak Investment, following its decision to inject Dh500 million. DSI has appointed former Arabtec CFO Ziad Makhzoumi as an Advisor to the Board of Directors, Muin El Saleh as Managing Director of the company’s UAE operations, Dr. Fadi Feghali as Managing Director for International Operations; Musa Ibrahim, Group Chief Legal Officer; Ismail Mohammad appointed as the Deputy General Manager of GTCC in the UAE, and lastly, Saher Ghazi Kamal, appointed as Acting Managing Director for KSA. Mohammed Atatreh, Group Managing Director and Board Member of Drake and Scull International, said: “Drake and Scull is implementing a comprehensive plan that will determine the company’s future direction. Our new set of appointees will play crucial roles in driving more productivity and growth for the company.” g

Gulf Property

Dubai to replace faulty facades

Non-fire-resistant aluminium claddings cause fires to spread fast – which could be prevented by replacing them with fire-resistant claddings

ubai Land Department (DLD), through its regulatory arm the Real Estate Regulatory Agency (RERA), has begun the process of replacing nonfire-resistant building facades across Dubai. The move comes following a number of fire incidents on high-rise towers in the UAE – including the Address Hotel Downtown, the Torch Tower, to name a few. Although fire was not caused by the firenon-resistant aluminium cladding, these cladding helped the fire to spread rapidly – causing more damage than it should have been. Mohammed Khalifa bin Hammad, Senior Director of the Real Estate Regulatory Department at RERA, commented: "By replacing building facades that do not comply with our fire resistance safety requirements, we are supporting DLD's vision of making Dubai the world’s safest and securest residential and investment

destination.” For some times, fire-safety authorities have been studying plans to protect buildings that have combustible cladding and are evaluating if fire-resistant barriers can be added to replace the flammable exterior cladding. The government is working with safety experts to examine methods that can be used to delay the spread of fires in older buildings with flammable aluminium cladding, an issue that has again came into the spotlight due to the recent Torch tower fire. Alubond and Alucopanel – the two aluminium panel manufacturers – last year said, they will start manufacturing fire-resistant cladding in the UAE to help prevent future fire incidents in buildings. “There are many options that are being reviewed based on science, engineering and cost. All of those things are aggressively being looked at by the government

here in the UAE,” said Drew Azzara, Middle East executive director of the National Fire Protection Association. The project has been specifically launched to ensure the safety of residents and save lives, while also preserving the emirate’s reputation as a leading destination for business, investment, travel and accommodation. RERA has launched the project based on the security, safety and environmental requirements imposed by the Dubai Municipality and the Civil Defense Department. RERA is now strongly encouraging all owners to replace non-fire-resistant building facades in collaboration with the city’s real estate developers. RERA has already implemented these measures with a number of companies, including Dubai Properties Group for its major Executives Towers, Vision Tower and Bay Square projects in the Business Bay area. g

Housing prices & rents fall in the UAE

Property prices and rents continue to decline in Dubai and Abu Dhabi, according to REIDIN

ubai Residential Property Sales Price Index for all residential decreased by 1.7 points, from 258.4 to 256.7, which represents a decrease of 0.63 per cent in August 2017, according to the latest REIDIN report. On the other hand, prices decreased 1.45 per cent year-on-year (y-oy). Apartment sales prices registered a decrease in August 2017. Prices decreased 0.70 per cent month-tomonth (m-o-m) and also decreased 1.54 per cent y-o-y. Villa sales prices registered an increase in August 2017. Prices decreased 0.36 per cent m-o-m and also decreased 1.12 per cent y-o-y. The Dubai Residential Property Rental Price Index for all residential decreased by 0.8 points, from 92.8 to 92.0, which represents a decrease of 0.86 per cent in August 2017. On the other hand, prices decreased 6.33 per cent y-o-y.

7.31%

decline in villa prices in Dubai

Apartment rental prices registered a decrease in August 2017. Prices decreased 0.87 per cent m-o-m and also decreased 6.16 per cent y-o-y. Villa rental prices registered a decrease in August 2017. Prices decreased 0.86 per cent m-o-m and also decreased 7.31 per cent y-o-y.

Abu Dhabi

The Abu Dhabi Residential Property Sales Price Index for all residential decreased by 1.1 points, from 95.1 to 94.0, which represents a decrease of 1.09 per cent in August 2017. On the other

hand, prices decreased 8.75 per cent y-o-y. Apartment sales prices registered a decrease in August 2017. Prices decreased 1.17 per cent m-o-m and also decreased 8.77 per cent y-o-y. Villa sales prices registered a decrease in August 2017. Prices decreased 0.85 per cent m-o-m and also decreased 8.7 per cent y-o-y. The Abu Dhabi Residential Property Rental Price Index for all residential decreased by 1.1 points, from 93.8 to 92.7, which represents a decrease of 1.13 per cent in August 2017. On the other hand, prices decreased 10.73 per cent y-o-y. Apartment rental prices registered a decrease in August 2017. Prices decreased 1.30 per cent m-o-m and also decreased 11.09 per cent y-o-y. Villa rental prices registered a decrease in August 2017. Prices decreased 0.45 per cent m-o-m and also decreased 9.34 per cent y-o-y. g

REALTYBYTES

ARACO to help build Dh395m worth of projects

bdul Rahim Architectural Consultants (ARACO), has been appointed to work on three projects with a combined value of Dh395 million, in collaboration with a local, family owned and operated real estate management, maintenance, development and rental company. The, mixed-use projects are located in International Media Production Zone (IMPZ), Al Furjan and Jumeirah Village Circle Dubai. ARACO will take responsibility for the architectural, MEP and structural design; preparation of tendering process; and construction supervision across all three projects. With an estimated construction cost of Dh300 million, the first project in the pipeline is a twin highrise tower development located in IMPZ. Once complete, it will feature two basement floors, a ground floor and 18 stories with 539 units of oneand two-bedroom apartments. The second project is located at Al Furjan. The building comprises of two basement floors, a ground floor and 13 stories, featuring a gymnasium exclusively for the use of residents. The 108 residential units will include 54 one- and two-bedroom apartments, with construction expected to cost Dh60 million g Gulf Property

OPINION

CHRISTINE LAGARDE

Managing Director International Monetary Fund

hen we think about Asia’s economic future, we know that this future is being built on strong foundations — on the richness and diversity of its cultures, on the incredible energy and ingenuity of the people who have changed the world by transforming their own economies. China and India have been driving the greatest poverty reduction in human history by creating the world’s largest middle classes. In a single generation, Vietnam has moved from being one of the world’s poorest nations to being a middle-income country. And Korea has transformed itself into a thriving advanced economy — inspiring those who are working hard to avoid the so-called ‘middle income trap’. These are only some of the many Asian success stories that have captured the imagination of policymakers and economists around the world. Why? Because this region is not just about sound macroeconomic policies and embracing global economic

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Asia’s Resurgence is integration. It is also about resourcefulness and immense determination. Twenty years ago, so many communities and companies were deeply hurt by the Asian financial crisis. So many countries in this region suffered a lot. But they also learned a lot — as did the IMF — and they are much stronger today. As the famous Korean proverb puts it: “After rain, the ground becomes firmer.” This resilience was earned through bold, post-crisis reforms. Many countries adopted more flexible exchange rates and reduced external vulnerabilities. They also strengthened their financial sector regulation and supervision, and developed domestic capital markets. With these reforms, Asia was able to weather the global financial crisis, and has since emerged as a key engine of global growth. Over the past decade, the Asia-Pacific region has contributed two thirds of global growth, and now accounts for about 44 percent of global GDP. Today we see the beginning of another economic transformation across Asia. What does that mean? It means that countries can build on the progress made so far, while addressing new vulnerabilities. These include immediate challenges such as high corporate debt and the risk of protectionism — but also longer-term challenges such as population ageing and lower productivity growth. There is a huge opportunity for policymakers to take the best of today’s Asia to build the best possible tomorrow for Asia. How? Through bold policy actions and strong in-

“China and India have been driving the greatest poverty reduction in human history by creating the world’s largest middle classes. In a single generation, Vietnam has moved from being one of the world’s poorest nations to being a middle-income country...”

– Christine Lagarde

ternational cooperation. Let me briefly discuss this from three perspectives: First, how can Asia seize its demographic opportunities? Second, what can governments do to boost productivity? And third, how can the IMF best serve its member countries in managing the next transformation?

Seizing the Opportunities

Let us start with demographics. Reforms in this area can lift potential growth and help societies share the benefits of growth more widely. Consider the immense potential of young and growing populations in countries such as India, Indonesia, and the Philippines.

By lifting productivity and creating more, higher-quality jobs for a growing workforce, these economies can reap this demographic dividend. IMF analysis shows that a growing workforce can add one full percentage point to their annual GDP growth over the next three decades. There are also rapidly ageing populations in countries such as China, Japan, Korea, and Thailand. They will have smaller workforces in the future and potentially lower productivity growth. We estimate that these countries could face lower annual GDP growth, again by up to a percentage point — although some of the negative effects of ageing remain subject to debate. So what can Asia do to step up its demographic ‘training’? One avenue that has worked in all countries around the world is to boost the proportion of women in the workforce. Korea and Japan, for example, could further increase their focus on reforming secondary earner taxation and boosting childcare benefits and tax incentives for part-time work. Emerging and developing countries, such as Cambodia and India, can benefit from expanding girls’ access to high-quality education and promoting women’s access to finance. Taken together, these initiatives could become an economic game changer. By some estimates, closing the gender gap in the labor market could boost GDP by 9 percent in Japan, 10 percent in Korea, and 27 percent in India. We have also seen benefits from fostering more inclusive growth — especially in

Key to Global Growth Urban development across Asia-Pacific region reflects the resurgence in Asian economies

countries where income and wealth inequality are high and rising. To put it simply, when the benefits of growth are shared more broadly, growth is stronger, more durable, and more resilient. In other words, increasing the economic “fitness level” can help ensure that the next generation will be better off.

Boosting Productivity

So much for demographics. What about productivity? Over the long term, productivity growth is the most important source of higher income and rising living standards. For example, countries such as Bangladesh, India and Indonesia are benefiting from steady investment, which can help boost innovation and potential growth. The not-so-good news is the sharp slowdown in productivity growth since the global financial crisis in countries such as China, Japan, Korea, and Thailand. This is part of a global trend, affect-

ing advanced economies and many emerging market countries. We estimate that, if productivity growth had followed its pre-2008 crisis trend, overall GDP in the Asia-Pacific region would be about 9 percent higher today. That would be the equivalent of adding to the global economy a country with an output of Japan. So how can governments step up their productivity “training”? Fostering innovation is one way. This includes providing tax incentives for research and development, and investing more in infrastructure and education reform. For example, Korea and Vietnam are world champions in educational achievement. Here a greater emphasis on vocational training could help reduce skills mismatches in some sectors. Of course, Asia has been a world champion in entrepreneurship, most recently in smartphone apps, e-commerce, and fintech. In these and other sectors, the region

could benefit from reducing overly stringent regulations and fostering new ventures and fresh ideas, rather than protecting incumbents. More trade can also play a role. Why? Because trade promotes innovation-sharing and pushes firms to invest in new technologies and more efficient business practices. For example, we estimate that China’s integration into the global trading system accounted for as much as 10 percent of the average overall productivity increase in advanced economies between the mid-1990s and mid-2000s. Gains like that illustrate the transformative power of trade. Today, billions of people across the globe enjoy higher incomes and living standards, because we are — collectively — world champions in trade and technological progress. But we also know that these structural changes come with negative side-effects, from job losses in shrinking sectors to social challenges in some communities.

OPINION The IMF as a Partner

That brings me to my third and final topic — the IMF as a partner, as a ‘fitness coach’. In many ways, the IMF has been going through its own transformation, and continues to adapt to better serve our member countries here in Asia and around the world. Our raison d'être is to work with our members to foster resilient and inclusive growth. This means engaging deeply through analysis, policy advice, and hands-on assistance and training on how to strengthen institutions and improve economic management. Think of what has been achieved since 2010, when Korea chaired the G20. Our discussions have contributed to the IMF’s reassessment of the role of capital flow management measures. We have also been working with our members to strengthen the global financial safety net — by enhancing our toolkit and by deepening our cooperation with regional financing arrangements, including the Chiang Mai Initiative. Let me conclude on a personal note: I have learned so much from Asia — from the young entrepreneurs in Vietnam to the students in Cambodia, China, Korea, and India. They embody Asia’s tremendous potential. I see a generation that will have a unique opportunity to lead Asia’s next transformation. By working and learning together — by stepping up our ‘training’ — we can help improve the lives of people in this region and across the globe. g Gulf Property

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Why rent when you can buy a home?

ith so many expats now considering living in Dubai for longer, an increasing number are contemplating purchasing a home instead of renting. For many, making this commitment can be a daunting prospect and decision-making will often become clouded given the significance of the decision and the possible effect on individuals and family lifestyles. There are many things for the uninitiated to consider such as budgeting and finance, asset type, area, fair values and timings to mention just a few. So, as an expat, why buy your home instead of renting it? Some may re-phrase this question by asking “How do I use my money to increase my wealth instead of the wealth of my landlord?” Buying your home is a positive step towards establishing your financial security by building your equity or “net worth”. Owning property allows you to change the application of your hard-earned money from covering an expense which offers you no financial return to investing in an asset which does. In a way, it’s a forced form of saving which will reap benefits for you in the future. Conversely, paying rent actually detracts from your ability to build net worth because, not only are you paying out money for no financial gain, but you are at the mercy of rental inflation as well. This is a problem because you are consistently

Paying rent actually detracts from your ability to build net worth because, not only are you paying out money for no financial gain, but you are at the mercy of rental inflation as well. This is a problem because you are consistently being asked to pay more while your salary increases are lagging behind, effectively eroding your ability to build wealth.

– Mohanad Alwadiya

being asked to pay more while your salary increases are lagging behind, effectively eroding your ability to build wealth. By owning your home, inflation is working in your favour because, in all likelihood, your property is increasing in value and, if kept for multiple years, will enjoy an inflation driven compounding effect on its value. This allows you to build your individual net worth through capital appreciation of your property, something which is very important for your financial future.

The fundamentals of buying property in Dubai are no different from those elsewhere in the world. As an expat in a new country, you may be even more anxious regarding the decision to buy which is all the more reason to stick to some tried and true principles. First of all, you need to be very clear as to why you are investing in real estate. Whether it’s to provide the family with a home, generate a steady stream of income or build equity for the future, make sure you are very clear about your expectations and quantify them wherever possible. Plan for the long term as the industry is cyclical yet very rewarding if you ride out one or two cycles. You also need to ensure that you know what you can afford. If you have the cash to pay for the property that you really want, I suggest you pay for it outright. However don’t be afraid to take out a mortgage and make the purchase as your repayments are building equity, not being lost forever on rent. Then it’s a case of finding the right property. I suggest you contact a reputable real estate brokerage to assist you in doing this but make sure that you conduct your own research as well. It’s a big decision you are making and you need to make sure you take the responsibility and are fully aware of what you are doing. As always, stick to the basics. Think carefully about location, quality of the building, developer reputation, completion status and quality of

OPINION

MOHANAD ALWADIYA

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

infrastructure and building amenities. Properties which are close to the beach (especially with a sea view), a golf course view or part of an iconic development such as Downtown is a good place to start. If you can also have close access to the metro, even better. These locations are more likely to provide a superior appreciation in capital value as well as riding out cyclical volatility with less distress. You also need to consider the effectivity of the Owners Association, service charges and the quality of maintenance services. Facility management is becoming increasingly more important to determining the value of buildings and it will have an effect on the long term value of your investment. Finally, think clearly and rationally. If you cannot find a property immediately that will satisfy your requirements and objectives, do not settle for less, regardless of what’s happening in the market. Be purposeful, persistent, patient and pragmatic in your approach and you are well on the way to making a very sound decision. g Gulf Property

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Check your credit score!

lot goes in determining the mortgage rate, and the credit score plays a vital role in qualifying the applicant for the loan. With the implementation of Al Etihad Credit Bureau (AECB) UAE citizens and resident’s gets empower to have superior pricing of loans with high or decent credit score. From meeting the conditions for a credit card, personal, auto loan to getting a mortgage will now ride on how good your credit scores are. It’s always great to know your credit scores and comprehending the credit history is an essential first step in your home finance, as it helps to determine the rate and conditions on a mortgage loan. If your credit scores are high, lenders will consider your application as a low-risk investment profile and will process the application faster with favorable conditions. Whereas, if the scores are lower the lender might place your application in a riskier investment category while keeping it on the apparent risk or decline the application. Therefore, once strongminded that you’re ready to buy a home, you are essentially required to figure out how lenders count on your credit worthiness.

Credit score

A credit score is a three-digit numerical expression grounded on the individual’s credit file analysis, which

epitomizes his/her, credit health. Credit score numbers are based on the credit report statistics that envision how well you settle up each of your debt onuses. AECB is the credit agency who maintains the credit report in the UAE, and clusters all the information about your credit from diverse sources. In UAE, the score ranges from 300 to 900 which is calculated using copious factors including nationality, age, outstanding balances, credit exposure and the average credit age. To ascertain if the applicant is a conscientious borrower, the lender needs a credit history to appraise the past debt performance and the loan exposure get calculated based on a bank’s risk appetite for every individual. These three digit numbers help financial institutions to offer the speedier approvals, lower costs of borrowing and other advantages.

sources for instance banks, finance, and telecom companies, so make sure to fix entire overdue amount by the due date to entitle yourself for a better interest rate. Moreover, have a serene approach, as it requires years to build a healthy credit profile, but at last, it’s worth maintaining prudent credit check. Also, to achieve the target score you should try to reduce your current borrowing across the financial institutions in UAE.

a cautious look to your financial habits and recognise where you can improve- Pay your bills on time, loan instalments or credit card repayments on time. To calculate the score, the agency gets the information checked from numerous

To check the credit score or report the residents can visit Al Etihad Credit Bureau’s customer service centers. To acquire the report you need to submit your valid Emirates ID, passport copy, and valid email address. A standard credit report for

Healthy credit score

In UAE credit score ranges from 300 to 900, where 900 is the best score you can obtain and 300 being the lowest. If the score is above 700, it is generally reflected as a credit healthy. Consequently, the closer you are to 900, the more assurance the financial lender will have in your competence to pay off the loan and hence, it gives better prospects for your application getting accepted.

How to develop good credit score Getting the There are always means to Credit Report boost the credit health. Give

OPINION

DHIREN GUPTA

Managing Director 4C Mortgage Consultancy

individuals or establishments costs Dh100, while the document with a score is an additional Dh50. For corporate, the standard report cost Dh180, or with a score, it’s Dh220. Furthermore, to get the complete information visit the Credit Bureau website, and have the precise information on the system. Buying a home is still a goal for many, but surging interest rates will make affordability even bigger factor. Just a slight variance can create or halt the planning, depending on the amount of the loan you ask for. However, it’s worth seeing whether you can afford a bigticket house or not. Ensure your credit score is acceptable enough in order to achieve the best rate and keep your debt payments wieldy. And above all, try to avoid making any other major purchases within six months of taking on a mortgage, since your credit score will likely drop from the process of getting the loan. Do keep an eye on your credit to get access to superior rate and terms, shop around and lock the best deal. g Gulf Property

Chinese firm to bring Dh2bn to Dubai realty FOCUS

Gulf Property Exclusive

Chinese real estate marketing company, UC Forward said, it will attract Dh2 billion investment in to Dubai’s real estate market – where Chinese investment has been quite low. Dubai Land Department (DLD) has appointed UC Forward Marketing as its Real Estate Promotion Trustee for the Chinese market. Under the agreement, UC Forward will promote investment in Dubai’s real estate market amongst a large

Gulf Property

pool of Chinese investors and wealthy property buyers who might be looking at a second or a third home for investment or holidaying. “We expect to attract more than Dh2 billion investment in the first year of this partnership with Dubai Land Department,” Richard Huang, chairman of China-based UC Forward, told Gulf Property. “China has a large pool of high net worth individuals and the potential for Chinese overseas investment is huge. Dubai property prices are one-seventh of those in Hong Kong and one-third of properties in Singapore. Besides, high rental yield of 7-8

per cent as compared to 1-2 per cent in other markets make investment in Dubai’s properties more lucrative to Chinese property buyers.” The company will also be able to register properties for Chinese investors through its extensive network of offices in China. It will maintain a registration trustee office in Dubai as well, to cater to the 300,000 strong Chinese community in the UAE. UC Forward is a real estate sales and marketing consultancy and an exclusive partner of Fang.com, China’s largest online property portal with a 70 per cent market share. With more than 34

million active members and 9 million unique users each month, Fang.com is the world’s most popular real estate website. The number of high net worth individuals (HNWIs) in China has risen nearly 9 times in the last decade, a recently released private survey showed. The number of Chinese with at least 10 million yuan ($1.47 million) of investable assets hit 1.6 million in 2016, up from 180,000 in 2006, according to the 2017 China Private Wealth Report by Bain Consulting and China Merchants Bank. The overall value of the private wealth

At A Glance

The share of the Chinese investment in Dubai’s real estate is steadily growing and the new deal with UC Forward will help it to accelerate

FOCUS

Dh12 billion

total Chinese investment in Dubai’s real estate

Dh3.14 billion Chinese investment in Dubai’s realty in 18 months

Dh113 billion

total foreign investment in Dubai’s realty in 18 months

Dh12.5 billion Saudi investment in Dubai’s real estate in 18 months

Dh20.4 billion Indian investment in Dubai’s real estate in 18 months

Dh9 billion

British investment in Dubai’s real estate in 18 months

Dh7 billion

Pakistani investment in Dubai’s real estate in 18 months from January 2016 to June 2017

market increased to 165 trillion yuan ($24 trillion) in 2016, growing at 21 per cent annually in 2014-2016. The percentage of HNWIs with overseas investments increased to 56 percent in 2017, up from 19 percent in 2011, but the overall percentage of assets invested overseas has stabilized since 2013. Rapid economic growth in recent decades has led to a massive rise in private wealth not just in China, but across the Asia-Pacific region. A study released by the consultancy Capgemini last year showed that the number of millionaires in the region

was growing steadily. There were 5.1 million people in the Asia-Pacific region who own more than a million US dollars each, Capgemini's report stated. That marked a 9.4 per cent rise in the number of millionaires in Asia, making it the continent with the most super-rich people globally, knocking North America from the top position. But the latest report by Bain Consulting and China Merchants Bank expects the growth rate of China's private wealth market to decline to 14 per cent in 2017, to a total size of 188 trillion yuan. The pace at which Chinese

millionaires are generated is also about to slow down, with the report projecting a growth rate of 18 percent this year, down from the 23 percent surge the country saw between 2014 and 2016. Huang said, his company will rope in more than 1,000 property brokers and online web portals to promote Dubai’s real estate in China. “The biggest hurdle for Chinese investment outside China is the language barrier and we want to overcome this through our dedicated Chinese staffs,” he says. According to DLD’s database, the value of Chinese investments in Dubai’s real

Sultan Butti Bin Mejren, Director-General of Dubai Land Department

estate market has exceeded Dh12 billion to date. Since 1996, 4,475 Chinese investors have made 8,259 real estate transactions in Dubai, which places them in 12th place among the 217 nationalities investing in Dubai’s real estate market. Indian nationals topped the list of foreign investors in Dubai’s real estate market investing Dh20.4 billion (US$5.55 billion) through 10,628 transactions in 18 months, starting from January 2016 till June 2017, according to DLD report. UK citizens took poll position among the European nationalities with 4,188 transactions worth Dh9 billion while Pakistani investors injected Dh7 billion through 5,398 real estate transactions. UAE nationals topped the overall list of investors registering Dh37.4 billion investment through 12,000 transactions. Saudi Arabians led the Gulf nations with 5,366 transactions worth Dh12.5 billion. Gulf Property

COVERSTORY Majida Ali Rashid, Assistant Director General and Head of the Real Estate Investment Management and Promotion Center at Dubai Land Department and Richard Huang, Chairman of China-based UC Forward, exchanges documents following the signing of an agreement that allows UC Forward to aggressively promote Chinese investment in to Dubai’s real estate

Investors from Egypt, China, Jordan, Lebanon and America placing in sixth to tenth places respectively through 2,439 transactions worth over Dh4 billion. Egyptians came in sixth place, followed by Jordanians who made 2,235 transactions worth Dh4.2 billion. Chinese investors ranked in eighth place after concluding 2,177 transactions worth Dh3.14 billion, while Lebanese nationals came in ninth place with 1,313 transactions worth Dh2.6 billion and Americans ranked tenth with 1,119 transactions worth close to Dh2.9 billion. Combined, all of the other nation-

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alities registered in the DLD’s database made a total of 23,318 transactions amounting to a total value of Dh48.66 billion. Which means, the bulk of the investment, or Dh113.6 billion came from foreign countries. This translates to 75.23 per cent foreign investment in Dubai’s real estate, compared to 24.77 per cent local investment. Although India, Saudi Arabia, United Kingdom, Pakistan, Egypt and Jordan are bigger sources of foreign investment in to Dubai’s land and property sector, most Dubai’s developers and real estate brokers have been ac-

tively pursuing the Chinese market for selling apartments and villas, due to a higher concentration of wealth in the People’s Republic of China. Recently Deyaar, a Dubaibased property developer, has appointed UC Forward to market its properties in the Chinese market. China remains the UAE's top trading partner, with annual non-oil trade at about $46 billion. The UAE's Ministry of Economy recently said that the country's investment in China totalled $2.1 billion in 2016. Estimates showed that the Chinese population in Dubai has seen rapid growth by 53

percent over the last five years, and Chinese expats run at least 4,000 companies in the UAE. Dubai Land Department and UC Forward confirmed their joint objective of securing Dh1 billion worth of Chinese investment for Dubai’s real estate market. As part of the agreement, UC Forward has established its own counter at DLD’s office in Al Fahidi Hall to provide free Chinese and English language consultancy services to Chinese investors. Sultan Butti bin Mejren, Director General of Dubai Land Department, commented: "We are delighted to have

DLD launches interactive app platform

ubai Land Department (DLD) has developed an interactive multiplatform application that helps investors and developers track the progress of all real estate development projects in the emirate. ‘Mashrooi’, developed in exclusive partnership with Emaar Properties Group, combines innovative technology with open data to drive transparency in the real estate sector for both developers and investors. The platform also allows developers to showcase upcoming developments to potential investors via the application; supplementing existing promotion methods. Sultan Butti Bin Mejren, Director-General, Dubai Land Department, commented: “His Highness Sheikh Mohammed Bin Rashid Al Maktoum’s recently launched Smart Cities and Open Data initiatives aim to make Dubai one of the ‘smartest’ cities in the

established a mutually beneficial partnership with UC Forward, as it will allow us to attract further investments into our real estate market. UC Forward will play an important advisory role, including raising awareness of the advantages of investing in Dubai’s real estate market, and helping to protect investors and their rights by clearly communicating our laws and regulations in both Chinese and English. This is the first time Dubai has appointed a Chinese company to play this role, which reflects the UAE’s strong relationship with China. The partnership will

world, providing residents and visitors the highest levels of technology, transparency and accuracy of information in the world. “In line with this vision, we have developed Mashrooi, which is the first government funded application of its kind anywhere in the world. This application serves to provide up to date and accurate information on all buildings under development in the emirate, enabling investors, residents, schools, business owners and others to be able to make informed decisions about where to live, work or invest.” Mashrooi will be unveiled for the first time at this year’s Cityscape Global 2017, hosted in Dubai. The app is the first in a long-line of planned initiatives from DLD designed to foster collaboration and encourage open data across the property sector. Through the app, users are able to search for any project under development and track construction progress data. Through augmented reality, users may also visually compare the construction progress to the see both parties working together to enhance DLD’s image through Chinese channels, attract direct foreign investment from China, and foster positive cooperation between DLD and Chinese real estate companies, brands and financial institutions. A report from accounting firm PriceWaterhouseCooper (PwC) showed that a billionaire was minted every three days in Asia, with entrepreneurs in China accounting for 80 per cent of new billionaires in the region.China’s billionaires in recent years have made their mark globally, investing in or buying

artistic renderings of the completed building. Further enhancements to the application will include using advanced elements like the ability to order a ‘drone-inspection’ of a project site that by using a GPS tracker will deliver real-time video footage and graphics. Majida Ali Rashid, Assistant Director-General at Dubai Land Department, added: “Mashrooi is a unique platform that combines state-of-the-art technology with robust data providing users with a much clearer picture of what stage a project is at, even if the investor is on the other side of the world. This removes a great deal of uncertainty and builds a very strong bond of trust and transparency between investors and developers”. The DLD is also in the process of developing a smart solution to convert the backseat windows of a car into interactive screens complete with augmented reality capability so that while being driven through Dubai, passengers can get a sense of how the emirate’s landscape will look in the future. g high-profile assets overseas. But an anti-corruption campaign over the past four years has netted some of China’s biggest tycoons, adding sensitivity to the country’s private wealth market. UC Forward will work closely with DLD to protect the rights of Chinese investors in Dubai’s real estate market through a variety of initiatives. The company will raise awareness of DLD’s rules and regulations among Chinese investors; offer consultation services for real estate investments, transactions and rental disputes; provide Dubai Real

COVERSTORY

Estate Institute (DREI) certified real estate brokerage courses and examinations in Chinese; and assist DREI in organising free open house events for the public. Majida Ali Rashid, Assistant Director General and Head of the Real Estate Investment Management and Promotion Center at DLD, commented: “DLD offers its full attention to investors from across the globe, and the Chinese market is currently considered one of the most promising for attracting real estate investments. This is demonstrated by the high number of Chinese nationals choosing to visit and live in the UAE. “In addition, the Dubai Property Show held in Shanghai last March achieved unprecedented success and attracted a large number of stakeholders. Our new partnership with UC Forward will certainly help us to raise awareness of the investment opportunities that our real estate market has to offer Chinese investors.” Dubai’s developers have been trying to attract Chinese investors through a number of events and exhibitions – such as Dubai Property Show, Hong Kong. Sajid Ali, Director, Sumansa Exhibitions commented: “Chinese have become an integral part of Dubai real-estate, as evident by the whopping 10.6 billion Dirhams (CNY 19.8 billion) that they had invested in the Emirate’s property until last year. g Gulf Property

UAE’s hospitality projects value touches Dh262 bn HOSPITALITY

Gulf Property Exclusive

he total of 543 active hospitality projects in the UAE reached US$71.6 billion (Dh262.77 billion) at the beginning of September 2017, according to BNC Network, the largest and most comprehensive project research and intelligence provider in the Middle East and North Africa (MENA) region. The hospitality sector constitutes 6 per cent of all active projects in the UAE's urban construction sector and in dollar terms these projects account for 14 per cent of the total estimated value, as per BNC Construction Intelligence. Among these, three hospitality projects with a combined estimated value of US$194.5 million moved to construction from other stages during August. The largest hospitality project in dollar terms to have moved to construction was

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Portofino Hotel located in Dubai's Europe Main Island. “The hospitality sector is on a roll as the countdown for Expo 2020 is closing in to three years within which all these projects will have to be ready for the massive influx of visitors,” Avin Gidwani, Chief Executive Officer of BNC Network, says. “According to Dubai Government’s stated projections, the emirate will need to add 40,000 hotel rooms in addition to the existing inventory of slightly more than 100,000 guest rooms and hotel apartments. “Tourism and entertainment sectors are major contributor to Dubai’s economy and remain a major focus in the government’s economic diversification plan. “In order to meet the growing demand, most project owners, developers are looking at completing building their projects before October 2020 when Dubai expects to receive 20 million hotel guests as well as 25 million visitors to the Expo site.”

Avin Gidwani, Chief Executive of BNC Network

As many as 83 new hotels set to open in the GCC in 2018 – part of the 200 new hotel projects in the pipeline, according to a new report which shows that the hotel market in Saudi Arabia is set to reach $4.29 billion in 2017. The region currently has more than 200 hotel projects in the pipeline, including 164 hotel projects in Dubai, 25 in Abu Dhabi and 12 in Ras al Khaimah seen as the busiest areas for hotel construction in the UAE. Of these properties, 83 will open next year,” said the report. Some of the most antic-

ipated hotel openings include Dubai’s Rosemont Hotel and Residences, Curio Collection by Hilton having 730 rooms and Fairmont Abu Dhabi Marina Hotel and Residences with 812 rooms. A BNC report found there are currently a massive 4,025 builds underway throughout Saudi Arabia, worth a combined US$725.8 billion. Almost US$350 billion of that value can be found in urban construction, where over half (2,804) of those projects are taking place. Saudi’s oil and gas industries are experiencing a US$88.4 billion injection, while ongoing transport, utilities and industrial developments have been valued at more than US$290 billion total. Four hospitality projects with a combined estimated value of US$527.2 million (Dh1.93 billion) were completed during August 2017. At the end of Q2 2017, there were 367 active projects in Dubai's hospitality industry. The total estimated

value of these projects is $43.7 billion (Dh160.37 billion). In Q2 2017, the number of hospitality projects in Dubai increased by 4 per cent as compared to Q1, 2017 and the total estimated value of the projects increased by 7 per cent. “The beauty of investment in the hospitality sector is that it offers a higher rental return than the traditional residential properties. In some cases, hotel guest rooms or hotel apartments offer 50 per cent more rental income – thus providing a total return on investment in eight years, as opposed to 12-14 years in residential asset class,” Gidwani says. “Also for a property devel-

oper, hotels and hotel apartment complexes offer a higher recurring income that helps the company and its business to withstand the shocks of economic slowdown and to become sustainable.” A total of 20 hospitality projects with a combined estimated value of US$1.1 billion moved to construction from other stages during Q2 2017. The largest hospitality project in dollar terms to be awarded was Terhab Hotel and Residences located in Jumeirah Village Triangle. Four hospitality projects with a combined estimated value of $108 million were completed during the second quarter in Dubai. g

HOSPITALITY

At A Glance

Dh262 billion value of active hospitality projects in the UAE

$725 billion value of construction projects in Saudi Arabia

Dh160 billion value of active hospitality projects in Dubai in Q2

$350 billion

value of Saudi Arabia’s urban construction projects

Gulf Property

COVERSTORY

Urbanisation needs re-thinking: El Burai 42

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“With 2.2 billion of the world’s approximately 7.5 billon people living with less than US$2 a day and a third of the global urban polulation living in slums, we need to think differently and perhaps unthink, or rethink our work...”

– Mahmoud El Burai CEO, Dubai Real Estate Institute

Gulf Property Exclusive ore than 2.5 billion people will be added to the global urban population within the next three decades, that poses enormous challenges to public policy makers in order to make the cities sustainable at a time when technology is disrupting the existing urban lifestyle on one hand and the growing number of slums poses environmental challenges, on the

other hand, experts said at a latest conference on urban habitat. “A third of the urban population is estimated to live in slums and informal settlements, often without access to proper housing, infrastructure or services. In Africa, it is closer to 60 or 70 per cent. The proportion is declining in some countries, but absolute numbers continue to rise,” said a latest United Nations report on habitat. “Formal figures show the urban share of global poverty rising, while the share and absolute number

Dubai to set up Urban Thinkers’ Academy

rban Thinkers’ Academy, a global urban planning and sustainable city t h i n k - t a n k launched the Urban Thinkers’ Academy in Dubai – that is expected to bring a number of urban planners, researchers, professionals, academicians and thinkers closer to help promote sustainable developments across the region. Didier Vancutsem, Secretary-General of City and Regional Planners, said, “We are happy to launch the Urban Thinker’s Academy in the UAE – which will help address the regional urban development challenges in the region.” Dubai Land Department (DLD), through its educational arm the Dubai Real Estate Institute (DREI), has launched its ‘Urban Thinkers Campus’ – a three-day conference as the world’s biggest brainstorming session focused on the of those in rural poverty declines.” Unable to afford the formal land or rental market, many urban residents have no option but to live in these unauthorised settlements, often lacking legal property rights, the benefits of citizenship, access to credit, insurance, the rule of law and even the vote, the report said. Mahmoud El Burai, Chief Executive Officer of Dubai Real Estate Institute (DREI), said, “What is a city without the people? The people should be at the heart of all urban development. It’s

COVERSTORY

future of cities. Sultan Butti bin Mejren, Director-General of DLD, opened the forum with a welcoming speech. Sultan Butti bin Mejren commented: “Over the past decade, we have witnessed a dramatic increase in the spread of digital technologies and services, which has radically changed our activities across all sectors including education, health care, society, the economy and of course real estate. “The revolution has produced huge amounts of data and introduced new terms such as the ‘Internet of things’, which have strongly penetrated Information and Communications Technology (ICT). This will certainly have a profound impact on cultural development and the way we live in smart and sustainable cities. We hope that the ‘Urban Thinkers Campus’, hosted by the UAE for the second time, will help all stakeholders to generate creative solutions for helping developers to plan cities that will enhance the comfort and happiness of their residents.” g about people and their lives and livelihood. Therefore, we now need to think – or unthink or re-think how we can develop cities and make them sustainable – both economically and environmentally. “With 2.2 billion of the world’s approximately 7.5 billon people living with less than US$2 a day and a third of the global urban population living in slums, we need to think differently and perhaps unthink, or rethink our work. “With the enormous challenges due to increasing Gulf Property

COVERSTORY urban population and the pressure on infrastructure and environment as well as the technological disruption that is happening, we need to unthink the traditional way of thinking and become more creative and innovative in our thinking. “These pressures and technological disruptions will widen the gap among the urban population. That’s why Dubai Government has stressed on public happiness – so that the changes and the growth could be inclusive.” Since 1990, the world has seen an increased gathering of its population in urban areas. This trend is not new, but relentless and has been marked by a remarkable increase in the absolute numbers of urban dwellers—from a yearly average of 57 million between 1990-2000 to 77 million between 2010-2015. In 1990, 43 per cent (2.3 billion) of the world’s population lived in urban areas; by 2015, this had grown to 54 per cent (4 billion). The increase in urban population has not been evenly spread throughout the world. Different regions have seen their urban populations grow more quickly, or less quickly, although virtually no region of the world can report a decrease in urbanisation. Asia has by far the highest number of people living in urban areas, followed by Europe, Africa and Latin America. The fact that 2.11 billion people in Asia live in urban areas is no longer a development scourge as once feared. Being 48 per cent urbanized and home to 53 per cent of the world’s urban population, Asia has become a global powerhouse, generating close to 33 per cent of world output in 2010.

44 Gulf Property

Mahmoud El Burai: A Profile

ahmoud Hesham El Burai is the Chief Executive Officer of the Dubai Real Estate Institute (DREI) through which he has managed to improve the operating environment and instill best practices in Dubai’s real estate market that has helped the sector to become more transparent, sustainable and investor-friendly. Mahmoud completed his Bachelor’s degree in engineering at the American University. His passion for the real estate motivated him to continue his studies and earn a Masters Degree in Real Estate Science from the National University of Singapore. He completed his Masters in Business Administration (MBA) in Finance from his alma mater, the American University of Dubai, in 2010. By joining the pioneers of real estate regulation, Mahmoud started the initiative for strategic partnerships with many international real estate associations, taking

“More than 2.5 million people will be added to the existing global urban population, which is about 55 per cent of the global population. Every week, the world is adding a city of 2-3 million population,” Christine Auclair, Project Leader, World Urban Campaign at UN-HABITAT (United Nations), told delegates at a conference on Urban Thinkers Campus in Dubai recently. “By 2020, more than 60 per cent of the global population will be living in cities and this will grow to 75 per cent in 30 years. This transformation and the rapid technological

Real Estate Regulatory Authority (RERA) global. He became a member of a number of these associations, such as ARELLO and truly represented Dubai well at their last conference in the USA. In addition to his government position in Dubai, Mahmoud has been the Vice President of the International Real Estate Federation, FIABCI UK, since January 2011 and sits on the Board of the Association of Real Estate License Law Officials (ARELLO), the International Real Estate Society (IRES) and the Middle East North Africa Real Estate Society (MENARES). Mahmoud has served as the FIABCI representative to the United Nations Economic Commission for West Asia (UNESCWA) since January 2012. Recently, Mahmoud was selected to be the only member from the Middle East North Africa (MENA) region on the United Nations Global Compact/RICS steering committee mandated to apply Global Compact Principles to the real estate industry. The local Global Compact changes poses a huge challenge for all of us and we should manage these changes carefully to ensure the growth remains inclusive.” The world is entering a new ‘Youniverse’ where young minds will reshape and redirect the course of the society and economy as technological disruptions are going to pose enormous challenge to mankind – 60 per cent of which will live in urban environment. “We are in the middle of a technological revolution. The world is moving fast from today to tomorrow as we can

network in the UAE was established last year following the DLD’s hosting of the United Nations Global Compact agreement in the MENA region. It was the first regional government institution to receive the honour of hosting this international event. Ever since its establishment, the local network has worked on strengthening governance, transparency, sustainability and human rights in various government economic sectors. The local network has so far attracted more than 150 member government institutions and companies from the private sector, Prior to his Managing Director role with the Dubai Real Estate Institute, Mahmoud worked for three years as the Senior Director of Real Estate Sector Development at the RERA of Dubai and also worked as a Development Associate Manager at Dubai Holding. In January 2014, Mahmoud was selected to join the Sheikh Mohammed Bin Rashid Leadership Program, which is designed to train top government decision makers. g see and feel the future now,” Osman Sultan, Chief Executive Officer of Emirates Integrated Telecommunications Company (Du). “Being connected has become a basic human right. Get connected,” was his message to delegates attending a three-day Urban Thinkers Campus conference hosted by Dubai Land Department at Meydan Hotel on Monday. “Do we realise how much digital contents and videos we receive and consume every day? In every 60 seconds, 150 million emails are sent out, 2.78 million videos are uploaded and 2.4 million

COVERSTORY

Google searches are conducted across the globe,” he said. In 2016, there were 512 cities with at least 1 million inhabitants globally. By 2030, a projected 662 cities will have at least 1 million residents. In 2016, an estimated 54.5 per cent of the world’s population lived in urban settlements. By 2030, urban areas are projected to house 60 per cent of people globally and one in every three people will live in cities with at least half a million inhabitants. Understanding the key trends in urbanisation likely

to unfold over the coming years is crucial to the implementation of the 2030 Agenda for Sustainable Development and for efforts to forge a new framework of urban development. “By 2020, there will be 7 million drones criss-crossing the United States and by 2030, around 50 per cent of all jobs will be replaced by robots, which will make half of the workers jobless. On top of that, with increased average life span human beings now live longer. [In terms of longevity] 100 is the new 60, Do you realise the pressure on urban habitat?”

he says. In order to re-design our life and urban habitat, Osman says a new world order is being re-shaped by digital start-up companies. “The world’s largest taxi company, Uber, does not own a single taxi while the world’s largest accommodation provider – Airbnb – does not own a single accommodation. Similarly, Facebook the world’s largest media does not create contents as Skype – the world’s largest voice service channel doesn’t own any telecom operator. These are all technology companies and they are

creating convenience for the people,” he says. “Most traditional corporations used to have 75 years average life, while the average life of new companies is less than 15 years – all these changes reflect a new business model. “Similarly, when we talk about the urban environment and smart cities of the future, we need to think how technology will change the way we live and work. We are moving from centralized to a more decentralized environment while at the same time, shifting from unshared certainties to shared uncertainGulf Property

COVERSTORY

ties.” On smart cities, he says, the shift is going to be from vertical to horizontal. “Dubai, as a great example, is shifting from a city of smart applications to a smart city – by connecting all the government services under one shared platform – so that all smart services are available on a single platform,” he said. “We are moving from human-to-human world to an environment where things will happen among machineto-machine (M2M). Machines will process enormous data as we are entering a world that would be dominated by the Internet of Everything and big data. “The question is what do you do with the data? This is what will determine how smart your city life would be. Data provides us information that then offers knowledge that creates wisdom. While we shift towards smart city, one should also need to look at inclusive growth. That’s why Dubai Government launched the happiness initiative, to reduce the digital divide and ensure all stakeholders are happy.” The cities of the future will have to create smart solutions to people’s lives. “And that’s why, everything needs to evolve around the people – You and that’s why we will have a ‘Youniverse’,” he concluded. The abundance of slums and informal settlements is a major threat to sustainability. Tarek El Sheikh, Head of Mission at Regional Office for Gulf States-UNHABITAT, says, “As much as 20 per cent of the world’s population lives in unsafe conditions. This needs to change.” Peter Louis, said the future of the urban world will be dominated by young people.

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“The future is going to be young. The vast majority of the new urban population will be under 30. “These young men and women don’t want to be told what to do, rather they want to do things in their own ways.” However, future urban growth needs to be sustainable as well, he says. “In Manhattan, more than half of the apartments remain empty for 10 months of the year – on an average, while New York City has one of the highest homeless population in America. The abundance of homeless people living in the same city with so many empty homes doesn’t make sense at all and that’s why inclusive growth and sustainability is so critical for

all of us. However, public-private sector partnership as well as engagement of communities in policy formation is crucial in addressing these issues, according to Rose Molokane, WUC Chair. “The cities need partnerships with government policymakers, private sectors, financial institutions and the communities,” she said. “Cities are for all those who lives in it – including those who live in the slums.”

Dubai Real Estate Institute

The establishment of the Dubai Real Estate Institute (DREI) as the education arm of Dubai Land Department was a crucial move by Dubai

Government in order to establish best practice in the industry. It not only helped clean up the mess in the real estate market created by the global financial crisis in 2008-09, but also played a crucial role in ensuring the industry best practices across the sector. Although the announcement of freehold property was made in 2002, the law to legalise foreign freehold ownership was officially passed in 2006 and the Real Estate Regulatory Agency (RERA) was created in 2007. The establishment of DREI followed a few years later, and it has since trained over 50,000 professionals. Today, no one is authorised to engage in the process of selling and purchasing properties

At A Glance 150 million

emails are sent out every minute globally

2.78 million

videos are uploaded every minute worldwide

2.4 million

Google searches are conducted every minute

2.2 billion

people are living with less than US2 a day globally

environment. Mahmoud El Burai has played a very significant role in cleaning up the sector and making it the best real estate market in the Middle East.

without holding a certified license. “Dubai’s property market is well regulated and we are very happy with the current sets of regulations,” El Burai commented. “Having said that, we are not sitting on our laurels; we are continuously challenging ourselves to generate and implement new and innovative ideas that will improve the regulatory environment and help investors.” A recent Dubai Land Department (DLD) report shows that 55 new developers entered the market as per the Developers Registration, with the launch of 134 new projects worth over Dh100 billion, and the completion of a further 62 projects in 2016. The data also reveals that in 2016, DLD recorded over

410,000 lease contracts from different groups across Dubai. DLD issued 695 brokerage licenses over the course of 2016. Of these, 272 brokerage companies were involved in the sale and leasing activities, while 223 brokerage companies were involved in real estate rental activities. The number of brokers has increased to 5,933 over the past year, and that 2,285 brokers’ offices were active in 2016. While the RERA regulates the market, DREI helps train professionals to improve the business practice and promote international best practice in the industry to help attract foreign investment by creating a clean, transparent and accountable business

Affordable Housing

Since the outset of the property boom 15 years ago, developers have been racing against each other to provide luxury amenities. Dubai has built a reputation for developing ultra-luxury homes, some of which are sold at more US$25 million a piece! In the process, affordable housing was somewhat left out of the overall development programme, but the government is now making great efforts to encourage developers to invest in affordable homes. A report by Ernst and Young in 2013, had said, unless MENA’s public and private sector leaders change their strategies, the growing crisis of affordable housing will become a major longterm problem that leads to

COVERSTORY widespread social dissatisfaction. “Affordable housing has always been part of Gulf nations’ housing policy statements. ‘A good home for every citizen’ has been part of the national social contracts and until roughly fifteen years ago that was a promise governments could keep. In the last decade and a half, however, governments have been falling behind: the systems in place, which used to be effective, cannot keep up with growing and diversifying economies and the long-predicted boom in urban population,” it said. There is an increasingly marked imbalance between rising wealth creation, on the one hand, and delivery of new homes and desirable living environment on the other. In the face of this pressure, the housing systems these nations put in place until 1990 are not keeping pace. Bahrain’s waiting list of nationals for affordable housing runs to more than 50,000 families. In Kuwait, the list is 95,000 long, and growing at 6,000 names a year. El Burai added, “We want to encourage developers to invest in affordable homes, as well as green and sustainable projects, so that we can achieve social and economic sustainability as we move forward.” Dubai’s real estate market is witnessing a shift in expatriate housing preferences towards more affordable areas, especially for those no longer able to afford apartments in the city’s central districts. To answer the demand, this year developers have launched new projects offering a total of 19,500 homes, of which an estimated 22 per cent are affordable for the middle-income bracket. g Gulf Property

Realty market needs disruption: Al Kindi INTERVIEW

Dubai’s real estate market needs disruptive ideas to accelerate sales activities – by creating a mechanism that will help salaried employees of the public and private sectors to buy properties by allocating their rent allowances to pay for the monthly installment. Marwan Al Kindi, Executive Director of Dubai Properties is coming up with some gamechanging ideas that will accelerate buying and selling...

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Gulf Property Exclusive

s Dubai’s real estate market matures, it needs matured thinking and revolutionary solutions to extend its reach so that those end-users priced out by the market for the last 15 years, could find a home in Dubai’s freehold market – now that the market has become a buyers’ market following the disappearance of the fly-by-night operators and speculators.

Dubai’s real market is currently characterised by one of the best regulated market in the world, with real developers, real buyers, real brokers and real financers – without the presence of dubious players. The systems are transparent and the market environment is clean – ideal for property buyers and foreign investors. While many developers are lowering the property prices to the lowest possible minimum and others extending the payment plans – from five to ten years, including a benchmark 1 per cent monthly installment – many

INTERVIEW “Staff housing of large companies could be a gamechanger for Dubai’s residential property market – if developers, large companies and mortgage lenders come together to address the current gap in the market.”

– Marwan Al Kindi Executive Director Dubai Properties

in the industry have started to think out of the box. Marwan Al Kindi, Executive Director for Sales and Sales Operations at Dubai Properties, and a market disruptor – is coming up with a gamechanging solution that will change the property selling game forever, or disrupt and overhaul the housing market totally. One of the ideas mooted by him includes tying up with large companies to offer freehold homes to their executive team members – by leveraging on the company’s staff housing allowances and mixing it with mortgage fi-

nance – to help them own a home in Dubai. This will help them enjoy having a good life at their own home, while working in a stable corporation and the monthly housing allowance and mortgage finance will guarantee a longterm payment of the home to the developer. “As Dubai’s real estate market matures, we also need to think like those in the developed and matured property markets and come up with revolutionary solutions to help more and more property buyers buy properties in Dubai,” Marwan Al Kindi, Executive Director for

Sales and Sales Operations at Dubai Properties, told Gulf Property in an exclusive interview. “Staff housing of large companies could be a gamechanger for Dubai’s residential property market – if developers, large companies and mortgage lenders come together to address the current gap in the market.” Companies like Emirates Airline, Ducab, Dubai Aluminium, ENOC, Dubai Holding, large banks, insurance companies, five-star hotel chains – can easily help their mid- to high-level executives to buy freehold homes by

tying up with established developers and mortgage financers. These arrangements could start with the government departments and public sector organisations, where the government entities could help their employees finance their homes from their monthly income and mortgage lenders – with a special arrangement. Marwan Al Kindi, who has anticipated the need earlier this year, has already started working on this. “We will first test this scheme with Dubai Police, and then gradually extend this scheme to senior Gulf Property

INTERVIEW

executives of other government departments and private sector organisations,” he said. “This way, we can help attract more tenants and convert them to become property owners.” Although the scheme is not new – and large corporations such as Emirate Airline had earlier commissioned villas to a number of developers to build homes for its pilots and cabin crews and similarly, Aldar Properties built homes that were absorbed by Etihad Airways and other large organisations – the scheme has not spread in the market in a big way. Marwan Al Kindi

Gulf Property

wants to extend this to the masses in a big way, so that they can live in peace – without having to worry about the house rent-related inflation – and enjoy life. One of the reasons why this scheme could not be spread out much is due to the higher ratio of expatriates in the job market and job uncertainty. Job loss of a property buyer while his or her outstanding payment outweighs the payment made already – might create unnecessary complications as well as people leaving the UAE with undisclosed debts also becomes large issues

for lenders as no one wants to see the piling up of bad debts. So, how does one fill the affordability gap in the market? “Affordability is a relative measure, especially in a growing real estate market with a high per capita income, such as Dubai. A commonly accepted guideline for housing affordability is when accommodation costs are within 30 per cent of a household's gross income,” according to White Paper by Collier’s International – a real estate advisory – published a few years ago.

“Given that the total monthly income for 50 per cent of Dubai households (excluding those in labour/staff/shared accommodation) is between Dh9,000 – Dh15,000, to remain affordable expenditure on housing should not exceed Dh32,500 – Dh54,000 per annum. Although this income bracket represents the majority of households in Dubai, it is presented with limited housing options in terms of product type and location in both the rental and freehold markets.” The availability of affordable housing not only assists

Water homes in Dubai

he UAE’s first-ever water home has made its way along the city’s newest attraction – the Dubai Water Canal – to berth at Marasi Business Bay last month. Over the coming days, the city will see more homes float into Marasi as Dubai Properties marks the next milestone achievement in transforming the bustling commercial hub of Business Bay into a truly urban lifestyle destination – a spectacle that is undoubtedly Dubai’s most exceptional ‘home delivery’ to date. Marasi Business Bay, once complete, will not only feature state-of-the-art water homes that come with pools and surrounded by floating restaurants. It will also see the Park, the Pier

in attracting and retaining a skilled labour force, but it also increases the overall spending power of households, Colliers’ said in the report. “These households can then afford to improve their existing quality of life by increasing their spending on vital social infrastructure facilities such as better levels of education and healthcare for their families.” Marwan Al Kindi has a solution to all problems, especially, when it comes to selling homes. His selling of properties includes a formula of five ‘P’s.

“These 5 ‘P’s are – Pricing, Payment Plan, Products, Places and Passionate People,” he says. “In the current market situation, we need to re-design the formula around these five ‘P’s – we need to re-look at the pricing, payment plan, products, places and the people – all needs to be re-worked to reach out to the end-users and make sure we provide what they want. “For years, we have given them what we developed and in our terms, our plan and our places. We have been used to do this for a long time. Situation has

and the Marina that will eventually comprise 800 berths, stretch along the Dubai Water Canal, making it the region’s first purposebuilt yachting hub at the heart of the city. Revealed by Dubai Properties Group, a member of Dubai Holding, at Cityscape Global 2016, the Dh1 billion mixed-use development is well on track to becoming the city’s most sought-after waterfront destination, elevating the larger Business Bay district that was ranked amongst the fifth must-see neighbourhoods in the world by Lonely Planet last month. The water homes are a considerable turnkey project for Dubai Properties as the developer introduces a real estate innovation that combines centuries of ship building heritage with cutting-edge design that will forever transform waterfront living in the emirate. g

changed, and reversed, in some cases. So, we need to switch the formula and turn it around to make them happier – so that they are tempted to buy. “The market now has real buyers – and there is no shortage of buyers. There are plenty of them. The problem is, most of them are not buying. We need to give it to them the way they want it – not the way we want it – as per the age-old adage, the customer is always right! “Besides, credibility of the developer is very crucial. Dubai Properties has delivered 40,000 residential units

INTERVIEW

in Dubai – where 100,000 people live and the number is only increasing. We have a strong legacy of property development and delivery. So, when the buyers look for properties, they search for credible developers and we are one of the best in the market.” In an exclusive interview with Gulf Property, Marwan Al Kindi, Executive Director for Sales and Sales Operations at Dubai Properties, explains his views and how he plans to overcome the challenges of selling properties in a tough market conditions. Excerpts:

Gulf Property: The market has become tough. How do you plan to overcome the challenge? Marwan Al Kindi: We need to revisit the selling models. We need to revolutionise our offering and making them more appealing to the buyers. Time has changed drastically. The new market reality demands products, payment plans, pricing and places to be as per the public demand – and the public dictates what they want and how they want them. We have to meet their expectations in order to make our case and our products appealing to them. We need to re-invent the 5 ‘P’s. Our age-old payment of 40:60 – with the majority payment on handover needs a new makeover as developers are now offering a tenyear payment plan with 90 Gulf Property

INTERVIEW

Al Kindi: The Disruptor!

arwan Al Kindi is a very passionate person. He is very passionate about his work and that reflects in his credentials. Who would not believe him? He started handling assets and properties at an early stage in life – when his father used to send him to collect rents from tenants living in their properties. “I started this while I was studying in high school and this practice has taught me to be responsible with money,” Marwan Al Kindi recalls. “Every time I used to collect rents and hand it over to my father in full, I used to feel good – the fact that I had fulfilled a duty. My love for this profession started from my high school life and it is continuing.” A young emirati information technology graduate from Higher Colleges of Technology, he started his career in 2005 at Dubai Municipality as an Internet System Engineer. He later on per cent gradual payment after nine years of handover – something that the market needs to adjust to. These types of payment disruptions might eliminate the mortgage lending requirements, especially the way property prices are coming down – again to match the ground reality.

What are the other measures needed to address the current situation? The industry needs to improve efficiency – across all levels. You need to be more productive with a leaner organisation.

Gulf Property

moved to join Emaar Properties to pursue his career within IT but his passion for sales was recognised and he was appointed as the Head of Sales which was his last held position at Emaar, one of the most successful property developers in the UAE. “I have been trained in the field of Information Technology. I am a computer science graduate. However, while working for the IT Department at Emaar Properties, my passion for selling properties came back to haunt me. So, I started selling property as a hobby while working at an IT engineer. The initial success got me excited and I continued to sell properties while work-

ing in the IT Department,” Marwan explains how he became a super salesman. “Gradually, I started to feel that this is what I wanted to do and this is what I enjoyed doing. I then spoke to the management and they happily transferred me to the sales department where I did so well, that I later became the Head of Sales at Emaar Properties.” After a few brief stints with Arabtec Holding, General Pension and Social Security Authority, his passion for selling properties forced him to re-enter the property selling business. In October 2015, Marwan Al Kindi joined Dubai Properties as Executive Director overseeing their Sales and Sales Operations

Doing more with less is the key – and pass on the savings to the customers to make the same products more cost effective.

nance package by leading lending institutions – that will help boost sale and help employees to become homeowners, from being tenants. This way, we could help accelerate the real estate market – and we could become the champion of the new drive that will make the employees happier as our government continuously asks us to challenge ourselves to help increase customer happiness.

Are you taking any concrete measures to revamp sale? Yes, we have identified a wide gap in employees housing scheme – where we as developer could leverage our reputation and strength in offering affordable homes to government employees and to the senior executives of key private organisations on either a long-term payment plan, or an extended home fi-

How is it going to work? We are working on the scheme, We will make an announcement when all par-

department – a time when property sale began to decline across the emirate, with a few exceptions. “Then I left Emaar in 2014 to join Arabtec Holding – which was going through a phase and I did not feel comfortable. So, I joined the UAE Ministry of Finance – to take up a UAE federal government job in February 2015. Although things were very good there and I almost felt like at home, my passion for selling properties started to work in me. I started to feel the need to sell real estate – more and more – as I was missing it. “Last year, I decided to leave the government job and join Dubai Properties Group to head its sales department. Now I work day and night selling properties and never get tired. This is my passion and this is what I love doing!” His joining the Dubai Properties has become a gamechanger for the public sector developer. The company, after seeing a surge in sales, has started to roll out projects one after the other – while some developers started to shelve projects. g ties are ready. Once launched and accepted by the stakeholders – the fixed middle-income households – we believe it will disrupt the entire market and others will be forced to come up with better ideas than ours. Why only with government employees – why not the private sector? Let us first start with the public sector, then we will extend this to leading private sector organisation. Where does the water homes within Marasi de-

INTERVIEW

velopment fit in? These are lifestyle products and there is a market for this. As a developer, we offer a wider choice to the customers. They can buy properties that suites their tastes and lifestyle. If you look at the latest Dubai Land Department’s report, foreigners pumped in Dh113.6 billion or 75.23 per cent of Dh151 billion invested in Dubai’s real estate in 18 months from January 2016 till June 2017. Saudi Arabians led the Gulf nations with 5,366 transactions worth Dh12.5 billion. In-

dian nationals topped the list of foreign investors in Dubai’s real estate market investing Dh20.4 billion (US$5.55 billion) in 18 months, UK citizens took poll position among the European nationalities with transactions worth Dh9 billion, while Pakistani investors injected Dh7 billion. Investors from Egypt, China, Jordan, Lebanon and America placing in sixth to tenth places respectively through transactions worth over Dh4 billion each. Egyptians came in sixth place, followed by Jordanians who made 2,235 transactions

worth Dh4.2 billion. Chinese investors ranked in eighth place after concluding 2,177 transactions worth Dh3.1 billion, while Lebanese nationals came in ninth place with 1,313 transactions worth Dh2.6 billion and Americans ranked tenth with 1,119 transactions worth close to Dh2.9 billion. We want to cater to all of them. The vision of Dubai is to offer the freedom to choose what best suites a customer – and what makes him or her happy. We are there to offer them all types of homes. So, the water home is our offering to a different market seg-

ment and caters to the tastes of many. With water homes, we are taking luxury to a new level, never seen in the Middle East.

When the market is shifting more towards affordable homes, you are promoting lifestyle and luxury. How will you then appeal to the customers? I believe in open market competition. In Dubai, there is a market for every segment. We also have our footprints across all segments – affordable, luxury, lifestyle, etc. g Gulf Property

MEGAPROJECT

Dubai South develops affordable housing

Gulf Property Exclusive

aster Developer Dubai South is spearheading the development of affordable homes for those belong to the middle income group working at Dubai South. It has awarded a contract worth more than Dh600 million to Al Qabdah Global Building Contracting for the development of residential buildings in the urban community The Pulse located in the Residential Dis-

Gulf Property

trict of Dubai South, adjacent to the Expo 2020 Dubai site and Al Maktoum International Airport, and part of the 140 square kilometre mega development project. Construction work for 11 buildings as part of seven projects will be delivered in phases from 2019 in 26 months, officials told the media at a press conference. Dubai South expressed confidence that this partnership will ensure the latest developments in smart city technology and sustainability are seamlessly integrated into all aspects of The Pulse Residential Project, which is

specifically designed to deliver life solutions and attractive urban design. The Emirate’s flagship urban project, Dubai South, has been conceptualized to manifest the themes of happiness as set out in the Dubai Plan 2021. Khalifa Al Zaffin, Executive Chairman Dubai Aviation City Corporation and Dubai South, said, his organisation is investing Dh1.1 billion for the infrastructure works while the Dh1.5 billion Pulse will be developed with the sales proceeds. “The concept behind this community is to reinvent

urban living. This entirely new and incomparable model puts people first and focuses on affordability while celebrating nature and diverse populations. This combination proved highly successful during sales in Q4 2016, where we surpassed our targets and achieved more than 90 per cent sales. In Al Qabdah, we have found the right partners to deliver the true experience of this unique community to our customers." “More than Dh7 billion will be pumped into real estate projects in Dubai South ahead of Expo 2020,” said Al

MEGAPROJECT

Khalifa Al Zaffin, Executive Chairman Dubai Aviation City Corporation and Dubai South

Zaffin. “Of these, half the investments will be made by the master developer while the remaining half will be deployed by private investors.” Dubai South has also launched its latest residential project, Parklane, including 1,400 apartments and townhouses. Apartments at Parklane start from Dh300,000 for a studio, and at Dh1.1 million for townhouses attracting strong response from prospective buyers and investors. “Since we launched Parklane, we have already sold 40 per cent of the released inventory within the first few

hours of launch. Following the commencement of The Pulse development, we will appoint the contractor of Parklane within the next four months,” Al Zaffin added. The Pulse master plan includes The Pulse Mall, a shopping centre with a wide range of experiences from a hypermarket, movie theatres, restaurants and cafés, fashion and a spacious fitness center. The mall is located in the heart of the community and within walking distance from all residences. The Pulse Mall is currently in final design stage, and will be awarded to

the contractor within the next four months with delivery scheduled for early 2020. In addition to the Pulse Mall, there are two hospitality towers with 450 hotel keys opposite the mall with direct access to the main boulevard, which is planned to be developed in two phases. A 4-star hotel and serviced apartments are due to be delivered in 2020.

Residential District

Dubai South, the 140 square kilometre new urban devel-

opment with Al Maktoum International Airport as its centre piece, is an aviation city currently under development, which is split into a number of districts, such as the Residential District, Commercial District, the Logistics District, Aviation District, Exhibition District and Expo 2020 site. An affordable community catering to families and young professionals, Dubai South’s Residential District includes schools, nurseries, hospitals, retail outlets, F&B options, offices, swimming academy and a sports complex. The pedestrian-friendly, sustainable city is designed to ensure all amenities and necessities are well within walking distance. Dubai South Residential District will have around 10,000 residential units between villas, townhouses and apartments by 2020, housing an estimated 35,000 residents. The Pulse is the first of a series of residential communities by Dubai South. g Gulf Property

MEGAPROJECT

Dh24bn Aljada likely to transform Sharjah

Gulf Property Exclusive

harjah-based Basma Group which earlier had formed a joint venture called Arada – with Khalid Bin Waleed (KBW) Investments – has recently unveiled Aljada, a Dh24 billion mixed-use master-planned community that will cover 2.2 square kilometres of empty land on a desert sandscape and transfor it to a 70,000strong thriving community when completed in a few

Gulf Property

years, the company said in a statement during its launch on the first week of September. The new project reflects a new thinking by the government of Sharjah, which has been maintaining the status quo on property ownership law until recently, despite the huge surge in freehold real estate business in Dubai, Abu Dhabi, Ajman and Ras Al Khaimah. Sharjah has a more rigid policy on property ownership – when it comes to foreigners. It allows 100 per cent freehold foreign ownership of land and property to GCC

nationals and Arab expatriates. For non-Arab foreigners, the ownership is limited to leasehold up to 99 years. However, the scenario is changing with the launch of Tilal City and Arada’s new projects – where the foreign ownership is likely to be extended to foreigners. Arada, a Saudi-Emirati joint venture developer, announced Aljada – a US$6.5 billion (Dh24 billion) township project in Sharjah, that will expand the urban landscape of the UAE’s third largest emirate and help attract a large sum of foreign investment.

HH Sheikh Dr Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, unveiled the project on September 06, 2017 a few days ahead of the Cityscape Global exhibition, Aljada is Sharjah’s largest ever mixeduse development project, and is ideally located on the last major plot of undeveloped land in the heart of the emirate. “Upon completion, Aljada is projected to play host to a total of population of around 70,000, which will include the thousands of visitors flocking to experience this multi-

MEGAPROJECT “We want to offer residents and investors upscale living experiences that are currently unavailable in the market and ensure a better life for everyone who visits, lives, or works in Aljada. We are confident that this development will raise interest in Sharjah even further...”

– Sheikh Sultan bin Ahmed Al Qasimi Chairman of Arada

Sheikh Sultan bin Ahmed Al Qasimi, Chairman of Arada, shows the Dh24 billion masterplanned community to His Highness Dr Sheikh Sultan bin Mohammed Al Qassimi, Member of the Supreme Council and Ruler of Sharjah

faceted destination. In total, Aljada has a gross real estate value of Dh24 billion,” a company spokesperson said. Delivered in phases starting from 2019, construction on Aljada will begin the first quarter of 2018 and the entire project is expected to be completed by 2025. “Aljada is an all-encompassing district that comprises considerable retail, leisure and entertainment options, in addition to a wide range of residential and commercial offerings, such as a dedicated business park. The Aljada masterplan is carefully

designed with walkability and wide green spaces in mind, allowing residents, workers and visitors the ability to live, work, play and be entertained within an all-inclusive and self-sustained precinct,” the spokesperson said. Aljada’s entertainment and leisure precinct, the Central Hub, is a significant addition to an Emirate that is already widely regarded as the cultural capital of the Arab world. The beating heart of Aljada, the Central Hub will be a major draw for tourists and residents in its own right. The Central Hub will be anchored by a spectacular

showpiece musical fountain display, situated in a beautifully designed urban piazza, populated with an array of cafes and restaurants. Among the Central Hub’s other attractions will be the largest children’s adventure and discovery complex in the Northern Emirates, alongside skateparks, an extreme sports centre and a wealth of indoor and outdoor entertainment. In a first for the UAE, Aljada will contain two linear parks, each 2.2-kilometre long, that stretch the entire length of the project, helping to promote an active, healthy

lifestyle and giving every resident the opportunity to enjoy lush green spaces only a few minutes’ walk away from their front door. In addition, two wide tree-lined boulevards totalling 4.4-kilometres in length and featuring carefully curated retail and F&B offerings, will provide a vibrant and busy connection to every district in Aljada. The launch of Sharjah’s newest and most desirable address comes only months after the successful introduction of Nasma Residences, Arada’s first real estate project, which rapidly became the emirate’s fastest-selling Gulf Property

MEGAPROJECT

residential community. With Aljada, Arada has positioned itself as a major driver for economic growth and a contributor to the Sharjah government’s vision for the Emirate’s future. Arada’s Chairman, Sheikh Sultan bin Ahmed Al Qasimi, said: “Aljada reflects Arada’s unwavering commitment to contribute to the Sharjah leadership’s vision by creating unique urban communities with ample green spaces. We want to offer residents and investors upscale living experiences that are currently unavailable in the market and ensure a better life for everyone who visits, lives, or works in Aljada. We are confident that this development will raise interest in Sharjah even further while strengthening its position as a secure and sought-after investment destination. Aljada also seeks to attract businesses looking to establish their base out of Sharjah, the UAE’s newest booming economic hub and a thriving business-friendly environment.” Aljada adheres to the latest initiatives embraced by the Sharjah government and is in line with the aspirational living preferences of its future residents. The development also elevates the Emirate’s real estate scene by introducing new standards for urban design, while merging a best-in-class living experience with the unique quality of life and familyfriendly environment that Sharjah is known for. Its con-

Gulf Property

temporary design is unique as it pays homage to Sharjah’s history and heritage using ‘sikkas’ and courtyard layouts that originally characterized some of the Emirate’s oldest neighbourhoods. Prince Khaled bin Alwaleed bin Talal, Vice Chairman of Arada, said: “Aljada is a project that stays true to its roots;

it embodies the heritage of the city that lies around it while looking forward to Sharjah’s future. With design elements that draw inspiration from Sharjah’s oldest neighbourhoods to environmentally friendly building standards, Aljada really does represent the best of both worlds.”

Sheikh Khalid bin Sultan bin Muhammad Al Qasimi, Chairman of Sharjah Urban Planning Council, said: “Elevating the standards of development in the Emirate of Sharjah by working closely with the Sharjah Urban Planning Council, Aljada will be distinguished by its superior architectural design and un-

MEGAPROJECT

paralleled quality of public realm, incorporating best international design practices. Master-planned with a focus on enhanced urban spaces, the design-led Aljada lifestyle experience integrates living, working and entertainment, all curated for a vibrant, tightly knit community.” The development includes an extensive residential mix including standalone villas, semi-detached villas, townhouses, lofts, and apartments, complemented by generous open spaces and facilities including F&B outlets, schools, healthcare clinics and mosques. A considerable portion of the masterplan is dedicated to green spaces and community facilities, creating an attractive opportunity for investors who want to buy in a new prime destination that perfectly captures the essence of Sharjah.

Aljada: The Project

pread over an area of 224 hectares, Aljada is 2.2 kilometres long and 1 kilometre wide, with a zoning approach that focuses on creating a onestop shop where people can live an active lifestyle by taking advantage of an extensive cycle network and range of running paths, share time with family and friends in nearby cafes and restaurants, or simply watch Sharjah’s position as an affordable alternative to Dubai continues to be retained. The emirate’s emerging profile amongst the wider expat community, coupled with the strong focus on creating a family friendly destination, is boosting its appeal and this

the world go by in one of Aljada’s many parks. Aljada offers superior connectivity, and is strategically close to important sites. It is just five minutes away from Sharjah International Airport and its adjoining free zone, the Sharjah International Airport Free Zone (SAIF Zone), and lies directly adjacent to University City, one of the Middle East’s most prominent education hubs. The location is ideal for a convenient and traffic-free commute from Sharjah to Dubai or the Northern Emiis reflected in the level of demand that’s being recorded. Suzanne Eveleigh, Clutton’s head of Sharjah, explained, “The villa market in Sharjah continues to offer good value for money when compared to Dubai, and Abu Dhabi, which means house-

rates. Aljada also enjoys direct access to Al Dhaid Road from the North and University Road from the South as well as easy access to Sheikh Mohammed bin Zayed Road, and will include ample parking for both residents and visitors. Additionally, its internal layout is designed to ease congestion within the project and provide ease of access for those entering and exiting Aljada thanks to multiple access points and generous road widths. g holds faced with rising living costs in these emirates are increasingly seeking out family home options in Sharjah. This has resulted in a turnaround in the performance of the villa market, as demand has now edged ahead of supply.” g Gulf Property

MEGAPROJECT

China State to build Dh8bn Motor City

Gulf Property Exclusive

nion Properties, which recently underwent a board shake-up, has assigned an agreement with China State Construction Engineering Corporation (CSCEC), one of the world’s largest construction companies, to build a Dh8 billion master-planned community within its flagship Motor City project. The new Motor City masterplan will comprise of 44 new high and low rise buildings, more than 150 villas, and a wide range of residential, commercial, entertain-

Gulf Property

ment and hospitality facilities. It is expected to include more than 11,500 residential units, around 3,000 serviced apartments, 3,500 hotel rooms, and a total of 46,000 square metres of retail space and more than 300,000 square metres of office space. In total, the new masterplan will see construction of around 18,000 units comprising residential apartments and villas, hotel rooms and serviced apartments. The company, which went through a series of restructuring following the 2008-09 global financial crisis including asset sales to repay debts and management shake-ups, is celebrating 30 years in business. Nasser Butti Omair bin

At A Glance

$2.2 billion

value of the new masterplanned community

11,500

new residential units to be added to the existing project

18,000

units are being planned in the new community

300,000

square metres of built-up area will be developed as part of the new masterplan

Yousef, Chairman, Union Properties, said: “Our partnership with CSCEC is a significant milestone as we set out a new direction for Union Properties. For 30 years Union Properties has built a reputation as a leading developer in Dubai with some landmark buildings and communities. “Today, with our new management team and clear growth strategy in place, we are setting out on a new phase that will take UPP to the next level, both in the UAE and internationally. “Our Motor City Masterplan embodies our new vision. From design through to construction, we are partnering with the best minds in the business to create a truly

MEGAPROJECT

Nasser Butti Omair bin Yousef, Chairman, Union Properties

China State builds Dh450m Oia project

n May this year, Union Properties appointed China State Construction Engineering’s (CSCEC) Middle East arm to build its Dh450 million Oia Residences project in Dubai’s Motor City. Oia Residences, made up of 269 flats, was the second

project launched in Motor City recently, and construction will soon start on a third, known as The Link. It will contain a hotel and retail space and will be positioned close to The Ribbon, a series of retail buildings due for completion within the next few weeks. CSCEC’s recent project wins include a joint-venture contract from Nakheel to build the Dh1.4 billion Palm Gateway scheme alongside

iconic City within a City.” The new announcement comes within a month of the appointment of Ahmed Yousef Abdulla Hussain Khouri as Union Properties’ Chief Executive Officer. At the heart of the new Masterplan will be a new design for Union Properties’ ‘Vertex’ – a mixed-use development with five towers, that will include a five-star hotel and serviced apartments. The company has announced plans to diversify its operations by opening two fully owned subsidiaries:

Union Malls and Al Etihad Hotel Management. Union Malls will provide retail and leisure offerings for UP's projects, while Al Etihad Hotel Management will develop and manage luxury hotels and furnished residences in Dubai. Al Etihad Hotel Management will provide hospitality services and facilities management (FM) for approximately 3,000 serviced apartments and 3,500 hotel rooms throughout Dubai's Motorcity, before expanding its business across the emi-

Korea’s Ssangyong Engineering and Construction, consisting of three high-rise residential towers on top of the Palm Jumeirah monorail station, and a contract to build a 364-villa project known as Zen for Indigo Properties. The lead consultant for the Oia Residences project is Conin, a Dubai-based firm, and the architect responsible for the Greek-inspired design is AK Design. g rate. Nasser Bin Yousef said: “Guided by a new management team, master plan, and projects, UP is beginning a new chapter in its proud history. “We have identified the creation of divisions in the mall and hotel sectors as being key drivers for the next stage of Union Properties' success that will serve to diversify our revenues while enhancing our communities.” Al Etihad Hotel Management launches with a pipeline of three hospitality

“Our Motor City Masterplan embodies our new vision. From design through to construction, we are partnering with the best minds in the business to create a truly iconic City within a City...”

– Nasser Butti Omair bin Yousef, Chairman, Union Properties

projects within UP's masterplanned Motorcity community: Vertex Hotel, Central Hotel, and a third unnamed project. The 25-level, five-star Vertex Hotel will form part of the developer's 85-storey, 300mtall high-rise structure at the heart of the Vertex Complex. The wider development will comprise 1,000 serviced apartments spread over 45 storeys. A range of leisure facilities, including landscaped platforms, will be located on higher floors. The four-star Central Hotel, Gulf Property

MEGAPROJECT

meanwhile, will boast 350 rooms across 18 floors. The third hospitality project will feature 270 serviced apartments, according to UP. Union Malls' inaugural project will be The Central, a 100,000 square metres complex spread across four floors, offering retail, dining, and leisure outlets. The Central will be characterised by its sports-related amenities, which will include a 250 metre indoor velodrome equipped for cyclists and trainers; a 700 metres indoor elevated running track; an indoor Olympicsized swimming pool; a driving centre; six indoor basketball courts; medical suites for sports therapy; and a 17,000 square feet gymnasium. “The opening of our new Union Malls subsidiary is the natural extension of this commitment that will enable us to create fantastic new shopping and leisure destinations in key developments like Motor City,” bin Yousef concluded. The publicly listed Dubaibased developer might seek debt financing for the Dh8 billion project, its chairman told the media at the Cityscape Global exhibition. Options include issuance of Islamic bonds to fund construction of the Dh8 billion

Gulf Property

UP at 30!

or three decades, Union Properties has been entrusted with developing key residential, commercial, industrial and leisure projects across Dubai, such as MotorCity, Dubai Autodrome, Green Community – MotorCity, Uptown Mirdiff, and Limestone House and Index Tower in the DIFC area. To celebrate the company’s 30th anniversary, Union Properties also unveiled a new brand identity designed to reflect both its track record of achievement and its values, goals and ambitions for the future. The operations of Union Properties extend beyond real estate investment and ($2.2 billion) project. Union Properties will raise about Dh2 billion per year of financing, Nasser Butti Omeir bin Yousef said during a press conference. The company has multiple potential sources of funding, including sukuk and conventional bonds, he added. It will take a decision on which instrument to use by the end of

development to encompass project management, interior design and fit-out, property management and facilities management, creating a powerhouse of the UAE real estate sector. Subsidiary companies include ServeU, The FITOUT, Thermo, GMAMCO, Edacom, and EMICOOL, Dubai Autodrome.For three decades, Union Properties has been entrusted with developing key residential, commercial, industrial and leisure projects across Dubai. Since starting operations in 1987, UP has proved itself to be a true pioneer of the UAE real estate sector, becoming a publicly traded company in 1993 and going on to develop landmark projects such as MotorCity, Dubai Autodrome, this year. The company, is already speaking to banks and could take a decision on funding options as early as this year, Nasser bin Yousef said. “We are negotiating with lots of banks to engage,” he said. “We have low ratio of loans to capital and we feel that the market is mature enough that we can use

Green Community and Uptown MotorCity, Green Community East and West at Dubai Investment Park, Uptown Mirdiff, and Limestone House and Index Tower in the DIFC area. For 30 years, Union Properties has held itself to the highest standards of design attention and build quality, putting liveability at the heart of its communities. Consequently, Union Properties ranks among the most trusted names in UAE real estate. The operations of Union Properties extend beyond real estate investment and development to encompass project management, interior design and fit-out, property management and facilities management, creating a powerhouse of the UAE real estate sector. g banks, we can use bonds, and we can use international [debt] market.” Union Properties is open to the possibility of a merger or acquiring another developer. The company plans to expand its business to markets in the broader Middle East and North Africa (Mena) region, its chairman said. “We are open for any good

MEGAPROJECT

UP to issue sukuks

nion Properties may issue Islamic bonds to fund construction of a new property development in the emirate worth some Dh8 billion ($2.2 billion), the company’s chairman said. Union Properties has announced plans for a major mall with sports facilities and three hotels to be managed by its new malls and hospitality subsidiaries. Union transaction,” Nasser bin Yousef told the media at the Cityscape Global in Dubai, when asked about the possibility of his company’s consolidation with another developer. The developer, whose board went through an overhaul in May, reported its worst-ever quarterly loss in August after it wrote down the value of investments and booked provisions to cover accounting errors of the firm’s previous management. The company recorded a Dh2.3 billion net loss for the three-month period ending June, which contrasts with a

Malls will be in charge of retail and leisure options including the developer’s inaugural mall the 100,000 square metre The Central in MotorCity. The complex will include a 250m indoor velodrome, a 700m elevated running track, an Olympicsized indoor swimming pool. Union Properties will raise about Dh2 billion per year of financing, Nasser Butti Omeir bin Yousef said at the Cityscape Global exhibition in September in Dubai. The company has multiple potential sources of funding, Dh71.7 million profit for the same period in 2016. Bin Yousef, who took over the firm in July after the impromptu reshuffle said that building the portfolio of leasehold properties remains a priority for the new management. Sale of properties has been the primary source of revenues for the firm in the past but UPP, for the first time, is trying to build its recurring revenue lines, he added. “We as a new board and we wanted to launch the new master plan for Motor City and that’s what we did. We

including sukuk and conventional bonds, he added. It will take a decision on which instrument to use by the end of this year. It has signed an agreement with the Chinese government’s China State Construction Engineering Corp to build the development, and the Chinese firm will participate in the financing, Yousef added. The project, called MotorCity, will lead to the construction of around 18,000 units in total including residential, commercial and hospitality facilities. g are going to build all our land bank,” Bin Yousef said. “The plan is to mix it: some of it to be sold and some of it to be [part of] leasehold portfolio. We will be leasing more than we will be selling but we have not decided the ratio yet.” The company expects its leasehold portfolio will yield about 10 to 12 per cent returns per year. “We are talking about a project cost of Dh8 billion and income of Dh1 billion from rent approximately,” he noted. “We have to start from here and this is our first initiative. g

“Our partnership with CSCEC is a significant milestone as we set out a new direction for Union Properties. For 30 years Union Properties has built a reputation as a leading developer in Dubai with some landmark buildings and communities. Today, with our new management team and clear growth strategy in place, we are setting out on a new phase that will take UPP to the next level, both in the UAE and internationally.”

– Nasser Butti Omair bin Yousef, Chairman, Union Properties

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INTERVIEW

Damac to exceed Dh7bn sales target

Gulf Property Exclusive

ubai-based international property developer Damac Properties, which has assets worth Dh26.31 billion, is expected to book sales to the tune of Dh7 billion in 2017, a senior official told Gulf Property in an interview. The developer, which books sales worth Dh4 billion and revenues of Dh3.5 billion and net profits of Dh1.6 billion during the first half of

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2017, is on course to book sales worth Dh7 billion for the full year, Niall McLoughlin, Senior Vice President at Damac Properties, told Gulf Property in an exclusive interview. He said, he did not see a slowdown in the market – although it is a well-talked about issue. “Our first half year sales are 11 per cent higher while revenues are 4 per cent higher this year compared to the same period last year,” Mcloughlin said. “We have earlier put out our sales guidance at Dh7 billion for the full year and we expect to ex-

ceed the sales target. So, our experience doesn’t show any slowdown in the market, may be in some segment and location, but not overall. “The market is stable and healthy – that’s how I see it.” However, the company’s net profits nosedived 18 per cent to Dh1.58 billion during the first half of 2017, down from Dh1.93 billion recorded in the corresponding period last year, which indicate a lower profitability. The developer has delivered 1,071 units in the first half as well as inaugurated the Trump International Golf Course at Damac Hills – the

rebranded name of the Akoya master-planned community. The Trump International Golf Course was inaugurated in the presence of two of Donald Trump’s sons – Donald Trump Jr and Eric Trump – within five weeks after Donald Trump took the office of the President of the United States. “In Dubai, we are seeing positive demand for our residential and hotel apartment properties, and this is in line with the recent announcement by the Dubai Land Department (DLD) reporting Dh132 billion in property

INTERVIEW “If you are delivering a project to buyers after having collected only 10-30 per cent of the property price, when you have had to pay nearly 100 per cent to the contractors, consultants, MEP contractor and all other subcontractors and matterials suppliers – how can you go ahead with your other projects – with the balance 70-90 per cent coming in six to eight years?

– Niall Mcloughlin Senior Vice President Damac Properties

transactions in the first half of the year, a notable gain over the same period last year which saw Dh113 billon. We applaud this decision which not only increases interest and footfall by visitors, it also ushers in a new era of growth in Dubai’s evolving property market,” he said. The developer’s gross debt (including Sukuk Certificates) reached Dh5.38 billion while its net cash position stood at Dh3.24 billion as at 30 Jun 2017. Its gross debt to equity ratio stood at 0.42 and gross debt to total assets reached 0.20 as at 30 June, 2017.

Earlier this year, Damac issued Sukuk certificates worth Dh1.84 billion (US$500 million) in April 2017 that will mature in April 2022 at 6.25 per cent coupon rate. Damac also repurchased Sukuk Certificates maturing in April 2019 to the tune of Dh727 million (US$198 million). In August this year, Damac Properties awarded Arabtec Construction with a US$171 million (Dh628 million) contract to develop 1,296 villas at Damac’s Akoya Oxygen master development. Arabtec will begin construction in Q3 2017 at the 55-mil-

lion-square-foot green development in Dubailand, and is expected to complete the project within 24 months. In an exclusive interview, with Gulf Property, Niall Mcloughlin, Senior Vice President of Damac Properties, elaborated his thoughts. Excerpts:

Gulf Property: There is a growing concern that the real estate market is suffering from a slowdown. How do you see the current market situation? Niall Mcloughlin: I can’t speak for others, but if you look at our half-year results,

you’ll see that our booked sales at Dh4 billion is 11 per cent higher and revenues at Dh3.5 billion is 4 per cent higher compared to the same period last year. The market has matured and it is now a stable market. So, like most matured markets, Dubai’s real estate market is also performing with slower but steadier growth and like most economic sectors, the real estate sector also evolves along with the economic cycles. What we need to do is to adjust ourselves in line with the ne market realities. The market is healthy and Gulf Property

INTERVIEW the player are all genuine – developers, brokers and property buyers – all understand the market dynamics very well. Besides, the strong regulatory environment creates a healthy playing field and ensures best practices and guarantees investment protection – which is encouraging more and more international investors to buy property in the UAE.

Do you think that the market is suffering from an oversupply? We do not feel that – as all our announced projects are selling well and those launched earlier – have been sold out. Although prices have come under pressure in some segments – especially the luxury property market – overall we think the market is well balanced between demand and supply. I would say that the market is quite stable at the moment.

What is the response on your latest project launch – Just Cavally? It’s going very well. We’ve just launched it and from what I hear from my sales team that it’s doing quite well.

Your company has brought a number of international brand in to the real estate market, including Cavalli, Trump, Versace and Bvlgari, etc. How much value does it bring, in terms of additional revenue per unit? As a developer, we are always on the lookout for value addition and branded real estate helps us to offer

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lifestyle and luxury and buyers and investors appreciate the value. Branding premium varies anywhere between 12 to 15 per cent. It creates a good differentiation in the market and helps us attract property buyers. From a buyer’s perspective, it becomes a pride possession and I don’t think they would mind paying some extra for the branding.

Damac Chairman has recently met officials in Canada, particularly in Toronto and expressed his intention to invest in

Canada. At what stage are the Canada projects? As a developer with international exposure, we would develop properties where we see good opportunities. Canada is one such market we did not explore. We have projects in Saudi Arabia, Jordan, Oman, Qatar, Lebanon and the United Kingdom. We are still in discussions with the Canadian officials and are still exploring possibilities. We will make an announcement when we have a definite project and when the deals are in final stage. Right now, there isn’t any-

thing definite.

You have recently spoken about the extended payment plans that many developers are offering to attract buyers and raised your concerns and doubts on whether they would be sustainable. Could you elaborate on this? Well, we see a lot of developers are offering extended payment schemes – that ranges from 5 to ten years including some saying 90 per cent post delivery handover in 9 years. First of all – if it all works out for the consumers and

INTERVIEW Niall Mcloughlin, Senior Vice President of Damac Properties

tion is will you be able to absorb the financial pressure when you are collecting just 20-30 per cent of the price and paying 95 per cent of the construction cost. How will you manage the next project, then? It will be a severe financial strain. So exercise caution.

developers – that’s fine. However, if not, then what happens? Are we then trying to collect as little as 10-20 per cent during the construction period and then let the property buyer and developer struggle later? For example, if you are delivering a project to buyers after having collected only 10-30 per cent of the property price, when you have had to pay nearly 100 per cent to the contractors, consultants, MEP contractor and all other subcontractors and materials suppliers – how can you go ahead with your other projects – with the bal-

ance 70-90 per cent coming in six to eight years? So, for a developer whose income source is the sales proceed and has limited funding options from banks, how much leverage could you exercise to make this happen? So, these extended payment offers appear good on paper. But only time will tell how these will work. Is this going to be sustainable? My worry is that some developers are taking a larger risk by offering such deals – which creates additional interest among the property buyers.

So, what do you think property buyers and developers should do? Simply, do your home work. Look at the numbers and see if this could work. Real estate is a long term development business and for a buyer – its perhaps the biggest investment. No one should look at real estate as a short-term investment. It’s not like investing in stocks or bonds. It involves most families’ total savings and if it goes wrong, then you might not have an option to fall back on. For a developer, the ques-

Since 2009, your company has been diversifying portfolio to make the business more sustainable. Could you share some more insights? Damac has so far delivered more than 18,500 homes – the largest by any privatelyhelp developers in the region. We have a development portfolio of over 44,000 units at various stages of progress and planning, comprising more than 13,000 hotel rooms, serviced apartments and hotel villas, which will be managed by its hospitality arm, Damac Hotels and Resorts. So, in terms of portfolio, we are a well-diversified and balanced development company. g Gulf Property

INTERVIEW

SPIPD to fast expand real estate portfolio

Gulf Property Exclusive

ndian construction conglomerate Shapoorji Pallonji, which delivered 10,000 units in 25 years within India, is looking at projects elsewhere in the Middle East, Africa and Sri Lanka, a top official said. The company is set to deliver its first residential real estate project Imperial Avenue – a 45-storeyed 424apartment complex at Downtown Dubai – at the last quarter of 2019.

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This is Shapoorji Pallonji group’s first major project as a property developer in the Middle East where the group has been active for more than 40 years as a contractor. “Construction is in full swing and we have already completed about 20 per cent of the work. Construction activities are running at 50 days ahead of schedule,” Cyrus Engineer, Managing Director of Shapoorji Pallonji International Property Developers (SPIPD), told Gulf Property in an exclusive interview. “Sales activities are going on and 20 per cent of the stock

have been sold or booked for sale already. “As a developer, we are also looking at a number of countries to develop real estate projects in the Middle East, Africa and Sri Lanka. Our vision is limitless, but we will make decisions based on the ground realities and project feasibility.” SPIPD is part of Shapoorji Pallonji – one of the largest engineering, construction, infrastructure and property development groups in India with 20 million square feet under various stages of development. “We cover the entire spec-

trum of property development, from concept brief to completion – all capabilities are built in-house that allows us to offer a better value to clients,” he said. The company last year launched the project, valued at Dh1.6 billion with prices starting from Dh1.5 million. One of the project’s key selling points is its location, at the Downtown Dubai facing Business Bay – the new and emerging business district with a lake. The construction of the project could cost the developer around Dh1.3 billion while the sales value could

INTERVIEW

“As a developer, we are also looking at a number of countries to develop real estate projects in the Middle East, Africa and Sri Lanka. Our vision is limitless, but we will make decisions based on the ground realities and project feasibility...”

– Cyrus Engineer

Cyrus Engineer, Managing Director of Shapoorji Pallonji International Property Developers (SPIPD)

reach Dh1.6 billion at current price. That leaves developer SPIPD, with a margin of Dh300 million. Piling and shoring works were carried out by Bauer. Cyrus Engineer said that the project will be financed by sales revenues as well as the company’s own resources. “We have a small sales team of four people. We believe, the project is uniquely positioned to be sold out before we start handing over – due to the basic fundamentals of the property,” Engineer, who was named the head of the company’s oper-

ation earlier this year, said. “First of all, you perhaps couldn’t get a better location for such a project – very conveniently located and well connected with two major highways – Sheikh Zayed Road and Al Khail Road and will soon be connected to First Al Khail Road. “Second of all, the project is being developed keeping end-users in mind. Our properties are spacious with all elements of a good lifestyle – multiple health clubs, swimming pools, community areas and retail facilities. Our home owners will find it a ‘complete community’ and

might not have to go out of the building for basic shopping. “Our prices are very attractive – Dh1.5 million for a onebedroom apartment is not expensive for a luxury property close to Burj Khalifa.” The developer is offering an attractive payment plan for buyers with 5 per cent payment on booking, 40 per cent on construction period and 55 per cent on handover. “With mortgage facility, a property buyer could start living in the property with a more convenient payment structure,” he says. The main civil engineering

works started in the first quarter of 2017 by the group’s construction arm, Shapoorji Pallonji Construction Co. The project gives its construction arm additional works to manage its business while the real estate and construction sector shows signs of a slowdown. The move comes off the back of Shapoorji Pallonji’s 45 years of experience as a contractor in the Middle East, working on projects such as Rove Hotels and Mudon Villas. Engineer said, the group is currently executing a number of affordable homes for the Gulf Property

INTERVIEW

Gulf Property

Imperial Avenue, the Dh1.6 billion project will be handed over in 2019

Shapoorji Pallonji Group

hapoorji Pallonji is a dynamic enterprise, which draws vital support from its various individual entities to be able to execute turnkey projects, swiftly and efficiently. Along with the flagship company Shapoorji Pallonji and Co. Pvt. Ltd. (specialising in construction, design and build and EPC), the other luminaries give the SP Group its tremendous strength and capability. With 58,000 employees and presence in 20 sectors, Shapoorji Pallonji has grown exponentially into multiple business segments with a progressive outlook and a thoroughly professional approach.

Past

About a century and a half ago, a small Indian company, Littlewood Pallonji and middle income groups find themselves priced out of the real estate market. It is closely working with the West Bengal government to deliver Sukhobristi – the 20,000 home development scheme for the middle income group. Shapoorji Pallonji Real Estate, part of the Shapoorji Pallonji Group, has bought 20 acres near Dwarka Expressway in New Delhi to build a 2 million square feet affordable housing project, according to recent reports. Shapoorji Pallonji had earlier joined hands with Standard Chartered Private Equity, International Finance Corporation (IFC) — an arm of the World Bank—and the Asian Development Bank

Company was commissioned to build a water reservoir for Mumbai (then Bombay). This would feed the water needs of citizens of Bombay. Over time, that company has grown to become the Shapoorji Pallonji Group of Companies, evolving into a large business conglomerate. The construction division is the name behind some of the most iconic buildings and structures that dot the architectural and industrial landscape of India. The creme de la creme of manufacturing, services and other industries have reposed their faith in Shapoorji Pallonji to deliver excellent quality consistently and unfailingly.

Present

The Group today has a strong presence in India and internationally including the Middle East and Africa. With a rich legacy of 150 years and a consistently superior track record, (ADB) for investing in the segment. The partnership will invest about $250 million to buy land, meet project approvals and develop infrastructure for the projects. Shapoorji Pallonji Group has launched its affordable housing brand Joyville, under which the group is targeting to build 20 million square feet of residential space over the next 6-7 years in the first phase of its affordable housing business plan. These projects will be developed across Mumbai, Pune, National Capital Region, Chennai, Kolkata, Bengaluru and Ahmedabad. The business plan will focus on both tier-1 and tier-2 cities with project sizes in the

Shapoorji Pallonji remains committed towards excellence in each of its operation. The business interest covers construction (including residential, commercial, industrial and infrastructure), real estate, infrastructure (comprising coal mining, power, ports and roads), biofuels and agriculture, consumer products, electro-mechanical and MEP services, facades and interiors, engineering, textiles, business automation and shipping and logistics.

Future

Shapoorji Pallonji has also taken a major step in the strategic area of Oil and Gas exploration for the country. Together with Bumi Armada Berhad – the Malaysian international offshore oil and gas services provider, it has successfully delivered the first Floating Production, Storage and Offloading Vessel for D1 field of ONGC in a record time of 16 months. g range of 1.2 million, Engineer said. “We are now focussing more on urban affordable housing, where we see a major development gap and high demand. It part of our corporate philosophy – to try and change the livelihood of the people,” he stressed. “Profit is a by-product of what we do and that’s not our main objective in business. “Joyville is our affordable home brand that we want to develop in at least seven Tier 1 cities of India. It will also make our business more sustainable. “As a business organisation, we work with other stakeholders to create a value for the societies where we operate in. So, we are a

INTERVIEW

different type of player in the market.” The company plans to develop at least six projects in India in the 2017-18 financial year, according to reports. The group’s Middle East operations currently represent about $3.5 billion of the total company order book of US$10 billion. It’s bulk of business is still concentrated in India. Some of the company’s most prestigious projects in the GCC include Fairmont Bab Al Bahr hotel, Abu Dhabi; Marriott Hotel Abu Dhabi, Sultan Qaboos Palace, Muscat; Damac’s Park Towers, Dubai; Bloom Central in Abu Dhabi, the Barwa City Amenities Zone, Doha, Phase II of Mudon and Shatt Al Arab Hotel, Basra. Shapoorji Pallonji Group, is a 150-year-old diversified family-owned conglomerate with interests in construction, real estate, textiles, engineering goods, home appliances, shipping, publications, power and biotechnology. It also has a large construction footprint in the UAE, Oman and other parts of the Middle East. It was established in 1865 as Littlewood Pallonji and Co and has come a long way in its journey over the last 150 years. The group’s 58,000 employees help it to generate an annual turnover of US$8.5 billion (Dh31.19 billion). g Gulf Property

INTERVIEW

Adding Swiss flavour to Dubai’s real estate

Gulf Property Exclusive

hen Karim Adi visited Dubai a few years ago, he almost fell in love with the city – with its vibrancy and modern infrastructure – so much so, that he decided to build his business in Dubai. A former equity trader with Credit Suisse and investment bank strategist with Pictet Group, Karim dealt with the upper echelons of the society for a good period

Gulf Property

- from 2006 till 2014 when his eyes feel on the emerging landscape of Dubai where he saw his future. “The city amazed me with its vibrancy, newness and its positioning and connectivity and I thought this is where I want to be and this is where I want to build my future,” Karim Adi, Founder and Chief Executive Officer of Swiss Property, tells Gulf Property in an exclusive interview at the Dubai Media City office of his public relations agency. “I almost fell in love with the city and especially with the real estate sector and then I decided to

invest in Dubai real estate. “So, in 2014 itself, we set up Swiss Property as a boutique real estate developer and investment advisor to bring in the international resources to enrich the local real estate market.” After adequate preparation, the company has launched its first project – Park One – a Dh60 million residential project at Jumeirah Village Triangle. The Ground plus four-floor low-rise building will host 56 residential units and is scheduled for delivery next year. The company then part-

nered with Dubai Healthcare City (DHCC) to develop Le Reserve – a cluster of twobuilding resort-type residential project hosting 230 homes that are scheduled for delivery in the first quarter of 2019. “Construction of both the projects are in full swing and we expect to deliver them on time to home owners and investors,” Adi says. “In order to suit the taste of all home buyers, Le Reserve offers 27 types of residential units starting from one-bedroom apartments to four-bedroom apartments. “Both the projects are

INTERVIEW

Karim Adi, Founder and Chief Executive Officer of Swiss Property

being built with the latest technologies and keeping in mind the green and sustainable elements to make them eco-friendly.” Designed by Ten Design, Le Reserve is being developed in DHCC’s Phase 2 in Al Jaddaf, overlooking the widest stretch of the Dubai Water Canal, Dubai Creek and Ras Al Khor Wildlife Sanctuary. La Reserve Residences is set to offer 230 high-quality units in the form of simplex and duplex apartments ranging from one to four bedrooms and designed with a unique Swiss flair. The proj-

ect concept is centered around wellness and incorporates holistic elements, integrating the indoors and outdoors – visually or through connected activity. From open terraces, outdoor activity areas and pedestrian trails, to running tracks, pools, gyms, and expansive greens for recreation, the project is designed to promote healthy living. NHCC has carried out the enabling works while the main construction activities have started on site. Adi said, the market is very competitive. “However, as a responsible developer, we

are focussing on the construction and delivery, more than selling the properties,” he says. “Our partnership with Dubai Healthcare City is helping us to move fast with the project execution.” He said, selling the property will not be an issue as they will become amongst the most sought after properties once completed. “I am not worried about the sale or lack of it. We are selling and people are interested in our properties due to the quality of the product and our strong commitment to the project’s construction, delivery and the quality of finishing that

we are going to delivery,” he says. “Real estate is a long term game and we are here for the longer term. So, we do not look at any shortcuts. That’s why we have partnered with the DHCC for the Le Reserve project to ensure the quality and timely delivery of the project.” He said, the market is well regulated and transparent – good for foreign investment. With the strong regulatory environment, his company will not have any problem attracting investment in to the project – especially with his clout in amongst large investor groups. “With Swiss Property, we are bringing the Swiss culture and philosophy to Dubai’s real estate market – which can only benefit from our expertise,” he says. g Gulf Property

Dubai to host Floating Venice Resort in 2020 FEATURE

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FEATURE

Gulf Property Exclusive ubai, the city of superlatives and unique attractions, will host a floating paradise with underwater restaurants and facilities that will offer breathtaking views of corals and marine life. Titled the Floating Venice, the project will host 12 restaurants including three

underwater – offering a host of entertainment to residents and visitors. Kleindienst Group last month launched the Floating Venice, the world’s first underwater luxury vessel resort. Valued at Dh2.5 billion (US$680 million), the Floating Venice will be located in The World islands, about four kilometres offshore from Dubai and will bring an authentic Venetian experience to the Middle East. “This unique floating resort has a capacity of up to 3,000

guests daily, with accommodation, restaurants and recreation split over four decks, one of which is underwater,” the developer said in a statement. “Guests will arrive by boat, seaplane or helicopter to the main Piazza San Marco where they can check-in at the underwater lobby. Gondola’s imported from Venice will transport guests to their cabins through the winding canals, or alternatively a short stroll through canal side walkways and bridges Gulf Property

FEATURE

will take them to their awaiting cabins.” Once completed, it will add to touristic attractions to Dubai and help attract international tourists to Dubai and UAE. The project plan includes planting of 400,000 square feet of corals in the vicinity of the resort to aid marine life and coral reefs and provide a picturesque view to the guests. There will be a range of 414 bespoke cabins arranged over 4 decks, one of which is underwater giving spectacular views of the coral reefs below and pass-

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ing gondola above, it said. “A plethora of elegant boutique hospitality spots and traditional artisanal shops will bring the Venetian experience to life. Throughout the year the Floating Venice will be a celebration of culture and the arts, where traditional festivals such as Carnivale di Venezia, Binnale di Venezia and Festa del Rendentore will bring the resort alive with the flair and heritage of Venice,” the spokesperson said. The Floating Venice will offer an unrivalled experience for guests where they can relax in a number of

pools, some of which will have acrylic bases giving amazing views of the coral reefs below. Over 400,000 square feet of corals will be planted around the Floating Venice from its own on-site coral nursery which will encourage an abundance of sea life. Unique floating beaches set against the stunning backdrop of the Dubai skyline will be scattered throughout the Floating Venice. A collection of 12 restaurants and bars offer a variety of entertainment, 3 of which are underwater giving spectacular vistas of the dazzling

marine life. Alternatively, the world’s first floating underwater spa awaits to pamper. Josef Kleindienst, Chairman of Kleindienst Group, said, “As a developer our vision supports and aligns with Dubai’s ambition to be a leading global destination and home of innovation as the world’s most forwardthinking city. “Our aim is to change the landscape of real estate and hospitality and deliver a new iconic experience. The Floating Venice is the epitome of this innovation and spirit, the world’s first luxury underwater vessel resort.”

FEATURE

The Floating Venice is set to become a new modern marvel and the latest iconic destination for Dubai. Its design echoes the ancient city with its elegant facades and magnificent palaces, the inspiration for the ultimate modern interpretation and natural progression of Venice, a luxury destination like no other. The Floating Venice is made possible through the new technologies developed creating The Floating Seahorse. Constructed from a mixture of concrete for the underwater sections and marine lightweight materials for

the upper decks, The Floating Venice will have a guaranteed lifespan of at least 100 years. Construction is scheduled to begin in Q1 2018 with completion by Q4 2020. Kleindienst is the developer behind the Heart of Europe islands and the Floating Seahorse, the worldâ&#x20AC;&#x2122;s first luxury underwater living experience, which are located in the Arabian Sea 4 kilometres off the shores of Dubai. A Kleindienst Group spokesperson answered a series of questions from the media in order to explain the overall project.

Question: When and where will it be built? Construction of the Floating Venice will begin in Q1 2018 and will be completed by Q4 2020. It will be built in dry-dock facilities in Dubai, UAE.

Is Floating Venice considered a property or a boat? The Floating Venice is actually considered to be a boat, as such it will carry a classification certificate from Tasneef, the classification and certification body of the UAE, which adopts international standards.

What is the expected lifespan of the Floating Venice? The Floating Venice will be rated and guaranteed to last more than 100 years, this is in fact four times longer than traditional buildings in the UAE.

Why build a floating resort and not one using traditional means? Since the launch of the Floating Seahorse, which was the worldâ&#x20AC;&#x2122;s first underwater living experience, there has been a tremendous amount of global interest and excitement behind the project. Gulf Property

FEATURE

In fact, in the last 18 months more than 21,600 people have visited The Floating Seahorse. Building Floating Venice allows us to create this underwater experience on a much larger scale, in fact of the 414 cabins, 180 will be below water.

How is it secured to the seabed â&#x20AC;&#x201C; is there a risk it can drift off in a storm? Even though the Floating Venice will be floating without support on the seabed, it will be completely stable and anchored in place using a combination of piles, flexible cables, and pneumatic telescopic piles. What happens with rough seas, will the Venice resort move like a ship?

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The Floating Venice is located in the World islands, which has a breakwater surrounding the mega project protecting the islands from rough waves, therefore it will never experience rough seas.

How do I get to the Floating Venice? Guests can get to the Floating Venice by boat, seaplane or helicopter, among other means including water bus and ferries.

Is the Floating Venice part of The Heart of Europe project? No, The Floating Venice is a completely separate project from The Heart of Europe.

As much as 400,000 square feet of corals are to be planted on the seabed around the Floating Venice, where do you get these corals from and how will this be done? The Floating Venice will have a dedicated team of

Seascapers who will cultivate and maintain the underwater environment around the floating resort, and its own coral nursery and laboratory. Using proven novel techniques such as electro-accretion technology which has had tremendous success in the coral reefs in the Heart of Europe project, will quickly transform the seabed around the resort up to eight times faster than under normal conditions, with a rich variety

FEATURE

tradition Venetian artisanal crafts and elegant shops.

of corals, sea grass and oyster beds.

What activities are there to do at The Floating Venice? There will be a multitude of activities on-site to entertain guests. Underwater there is the worldâ&#x20AC;&#x2122;s first floating underwater spa and gym located in the Arsenale Piazza. Guests will be spoilt for choice when it comes to dining and nightlife, with two world-renowned beach clubs as well as a collection of 12

restaurants and outlets which includes three underwater venues to select from. Throughout the Floating Venice, a range of intimate rooftop Bacari outlets serving traditional beverage from the Vento region will be available, the perfect spot to watch the sunset amid the backdrop of the Dubai skyline. Floating beaches with sand and a selection of pools will also be located around the floating resort, as well as a

full line up of water and beach sports. The Floating Venice will also be a celebration of culture and art brining traditional festivals such as Carnivale di Venezia, Biennale di Venezia, Festa del Rendentore, and Regata Storica to name a few to the Middle East for the first time. Alternatively, guests could simply take a stroll around the canals or perhaps take a gondola and explore the various boutique retailers selling

How many cabins will there be? There will be 414 cabins in total, 180 of which will be underwater.

How many people can visit the Floating Venice? The Floating Venice has a capacity of up to 3,000 people at a time.

What stage are your currently in, has construction begun? Currently the project is out for tendering, while construction activities are expected to start by the first quarter of 2018. The project is scheduled for completion in the fourth quarter of 2020. g Gulf Property

SPOTLIGHT

EFS secures Dh1 bn worth of contracts in 2017

FS Facilities Services, a regional leader in delivering integrated facilities management services across the Middle East, Africa, South Asia, said that the company has sustained its growth momentum by securing contracts worth Dh1 billion across its operating regions in what its official called as challenging times. The company was awarded key contracts in its biggest markets i.e. UAE, Saudi Arabia, Qatar, Jordan, and Egypt, for both public and private sector clients operating in various industries such as education, master communities, residential, and commercial entities. Buoyed by the project wins, EFS is set to achieve a commendable revenue growth of 26 per cent, despite the challenging macro and socio-economic scenarios in its major markets. Tariq Chauhan, Group CEO of EFS, stated: “We are pleased with the progress that EFS has achieved in 2017, despite the significant pressures experienced by the global FM industry due to the vagaries of the global economy. “EFS has adopted an innovative strategy and proactive approach in business development which has helped us deliver key project wins in the region.” g

Gulf Property

DMCC creates new Uptown at JLT

DMCC officials at the ground-breaking ceremony of the project

ubai Multi-Commodities Centre, the leading free Zone for trade and enterprise and master developer of Jumeirah Lakes Towers (JLT) in Dubai, said, construction works have commenced on its new premium district, ‘Uptown Dubai’, and that phase 1 with more than two million square feet of LEED Gold certified development will be underway by year’s end. Ahmed Bin Sulayem, Executive Chairman of DMCC, commented: “Uptown Dubai is a world-class smart district unlike anything on the market, innovatively designed to deliver a new beat for business, and a truly urban destination for people to live, work and thrive. Two super-tall towers and a vibrant central plaza will anchor the 10 million square feet development, creating an ultra-connected, energising district designed to meet Dubai’s next wave of growth.

This landmark development will create over 10,000 new jobs in Dubai.” Uptown Dubai, formerly known as the Burj2020 District, will include more than 10 million square feet of Grade A commercial and residential space, more than 200 retail outlets, approximately 3,000 residences, a central entertainment plaza, and a number of luxury hotels all offering supreme amenities. Uptown Dubai will be anchored by two supertall towers designed by internationally architects Adrian Smith and Gordon Gill from Chicago, USA. The district’s main podium, 28 meters above ground, features a two level central plaza that will be larger than New York Times Square, circled by outlets, connected to a retail mall below, all with direct access to the towers. Although Uptown Dubai is set to become a destination of choice for the global business community, its master-

plan by WATG, one of the world’s leading destination creation consultancies, equally sets out to create a vibrant destination for millennials and families seeking dynamic shopping and dining experiences, as well as entertainment and cultural events. Uptown Dubai aims to deliver the best in smart urban living and mobility with connectivity to public transport. Uptown Dubai is conveniently located close to DMCC’s Jumeirah Lakes Towers, a community of over 92,500 people, as well as major commercial projects in Dubai’s Southern belt such as Expo 2020 and Al Maktoum International Airport. Uptown Dubai’s residential properties, condominiums, will be available for off-plan sales in the first quarter of 2018. Over the next decade, the landmark development will create over 10,000 new jobs in Dubai. g

DLD creates academy for real estate media

ubai Land Department recently launched Urban Journalism Academy – that will help bridge a growing knowledge gap between global urban development and the local media and help them develop better editorial contents. While most local media cover hyper-ocal contents, they often do not get the big picture as they do not link their reports, features or analyses with the development in the international real estate market – such as the US, UK, European, Chinese or Indian markets. As a result, the analyses and reports remains out of touch from the global events and give an incomplete picture. Mahmoud El Burai, Chief Executive Officer of Dubai Real Estate Institute, the educational arm of Dubai Land Department, launched the Urban Journalism Academy, saying, “This is going to bring the global experts on urban development and habitat closer to the UAE media and help develop a better understanding of the challenges of urbanisation.” He also distributed fellowships to a number of media professionals who will be part of the new academy, including two from Gulf Property. He announced this at a two-hour Urban Journalism workshop that took place in parallel with the Urban Thinkers Campus discussion sessions. The workshop was hosted by the Urban Journalism Academy, which is a pioneering and innovative UN initiative that aims to strengthen

SPOTLIGHT

Saudi FM sector grows

audi Arabia now accounts for 55 per cent of the entire Middle East facilities management (FM) sector. The local sector’s value currently stands at $20.3 billion. The Middle East Facility Management Association (MEFMA) will put the spotlight anew on a range of contemporary issues and growth drivers that are influencing the steadily climbing regional facilities management industry when it hosts this year’s edition of the premier Saudi Arabia Confex. g

Tanmiyat gets contractor to complete projects

Mahmoud El Burai, Chief Executive Officer of Dubai Real Estate Institute, the educational arm of Dubai Land Department, is constantly striving to achieve better business practice across all spectrum of real estate market

the role of journalists and media professionals in shaping future cities. To this end, the workshop shed light on the overall process of urbanisation by sharing substantive knowledge about city planning and management issues, as well as by providing technical expertise for gathering and examining urban data and indicators. The Urban Journalism Academy also aims to highlight outstanding communication for development in urban contexts; share a selection of

interesting examples of sustainable urban transformation projects; and make urban development issues and challenges clear and accessible to the general public, beyond professionals, researchers and public authorities, to bring the urban debate closer to real citizens and residents. Journalists pointed out that there is a knowledge gap between the real estate journalists and the global experts – that the academy could help bridge in the coming years by creating a strong network. g

anmiyat Group said, it has made a major stride to deliver homes in its flagship Living Legends project and The Court Tower at Dubai Water Canal with the appointment of a new main contractor to resume and complete the construction of three towers. An agreement has been finalised between Tanmiyat and Beijing Emirates Company to deliver Cleopatra Tower, Aladdin Tower and Living Legends and The Court Tower within the next 6 months, leading to a renewed impetus in the project as the KSA-owned developer looks to deliver its commitments to its buyers. g Gulf Property

SPOTLIGHT

Demand for off-plan properties remains strong in Dubai, brokerage firm Allsopp & Allsopp says

Allsopp & Allsopp records growth

weet Homes launches first serviced apartments llsopp & its Allsopp, a major real estate brokerage firm, said its team now makes 3,000 new contacts per month, a senior official said, asserting that the market is showing signs of growth this year. “We have seen a growth in our overall business this year both in sales and lease portfolios,” Paul Kelly, Operations Director at Allsopp & Allsopp, told Gulf Property in an interview. “[The year] 2017 is better than last year. Most of the inquiries that we receive are from end-users. The market is not over-supplied as most new projects are snapped by investors – both off-plan and ready-to-move-in properties. “In fact, there are more demand than supply in the market. Digital sales are picking up and 10-15 per cent of the sale leads come from the digital channels.” Allsopp & Allsopp entered the UAE market 9 years ago as the global financial crisis was unfolding. However, it remained firmly on ground

Gulf Property

and continued to serve the market with a handful of people on board. The company lists 1,800 properties of which 1,700 are Dubai-based homes. “Today, we have a team of 120 professionals, of which 60 per cent are in sales and the rest look after lease portfolio. Additionally, we have about 30 more administrative and back-office staffs. The company, which also offers property management and mortgage services, alongside sales and leasing, is experiencing growth and higher demand, despite warnings of a market slowdown. CEO Lewis Allsopp said: “All year long we have been reading and hearing about a slowing in the property market, and rumours of oversup-

ply, but these reports are simply not reflected in the market reality we are experiencing. It might be our longevity in the market, our professionalism, or the trust our clients place in us, but I think it's important to reveal the true facts of Allsopp & Allsopp's business this year.” The property brokerage firm has seen a 29.1 per cent increase in Dubai property sales this year to date, compared to 2016; while the leasing team is reported 26.4 per cent more deals in 2017 than in 2016 to date. From January to September this year has been busy for Allsopp & Allsopp's 170 staff. There is more than enough market demand for the increased supply of properties coming onto the mar-

ket. Allsopp notes that over the last few months, investors buying from them have increased from approximately 25 per cent to 50 per cent, which he is seeing as a good indicator of increased confidence in the market and an optimistic outlook amongst investors for future growth. The positive outlook looks set to continue, with client registrations dramatically increasing since the start of September, after the summer months. “This is a trend we anticipated after the usual quiet summer months. We usually see a spike in property interest in September. But it is gratifying, given the market rumours, that we will see a strong end to the year,” he says. g

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Dubai sets up Urban Thinkers’ Academy

COVER STORY Mahmoud El Burai CEO, Dubai Real Estate Institute

Mahmoud El Burai:

Real estate needs re-thinking