Summer 2012
DIFC Downtown difc now the region’s top spot for fine dining
emaar’s standpoint now stands tall in downtown
the pavilion ticks off its first year of success
capital club offers food for mind and body
Roberto’s and Alfie’s have joined the likes of Hakkasan, The Ivy, Zuma, La Petite Maison and Gaucho to cement the DIFC area’s status as the region’s top gourmet destination.
The dual-tower Standpoint development on Emaar Boulevard is scheduled for handover at the end of the year. With towers of 25 and 35 storeys, this prime property has fantastic views of Burj Khalifa.
Formerly Emaar Sales Centre, The Pavilion has become a catalyst for Dubai’s creative community. Its summer programme includes Access ‘12, a global initiative to promote contemporary art.
Well known for its restaurant and bars, Capital Club in DIFC also organises business events, talks by thought leaders and guest speakers, and great informal networking opportunities.
DIFC–Downtown in numbers
5
number of new residential developments completed in DIFC area in the past year. Previously, notwithstanding the apartment buildings lining Sheikh Zayed Road, DIFC was perceived as purely a business area
7
number of Emaar residential towers currently under construction along Emaar Boulevard, Downtown’s main thoroughfare. Damac also recently topped out a new tower west of The Dubai Mall
1,200
number of shops in The Dubai Mall. It had an estimated 54 million visitors in 2011 and Emaar recently announced that it would expand the mall by more than one million square feet
1,233
current average price in dirhams per square foot of residential property of all types in the DIFC-Downtown area, according to Reidin data
2004
the year DIFC opened for business as a Free Zone offering majority foreign ownership of companies, no withholding tax, freehold land and an English legal system
High Style in the City’s Heart The dynamic DIFC-Downtown neighbourhood has taken up the mantle of high-end urban living, with all of the speed you would expect from Dubai’s financial hub by Samantha Armstrong
There is a vibrancy pulsing through the adjoining neighbourhoods of DIFC and Downtown that not only sets this area apart from the rest of Dubai, but occupies its very core. It’s dominated by international financial and legal sector workers from New York, London, Sydney, Mumbai, Moscow and Hong Kong, eyes open sharper and brighter here of a morning than in Dubai’s sleepy suburbs. When the Dubai International Financial Centre (DIFC) opened for business in 2004 the region’s financial sector was transformed. With its offer of majority foreign ownership of companies, no withholding tax, freehold land and an English legal system, opportunity
knocked across the region and beyond. Global financiers and the region’s property developers embraced the challenge of creating a new district that would deliver a balanced of work’ living and play. Recently joining DIFC’s exclusive Sky Gardens and Index Tower are the Limestone House apartments at The Ritz Carlton. The daily cares of cleaning, laundry and cooking can all be handled by the Ritz Carlton team, giving you a five-star hotel living experience. According to one DIFC resident the benefits of living here are many: ‘’Living here is easy. I live in fantastic surroundings without having to waste time travelling to and from work and, when I have some downtime, everything I need is on my doorstep. The vibe changes immediately when you walk into one of the bars and restaurants or go around the corner to Dubai Mall, so there isn’t a sense of being ‘too close’ to work. It is slick; everything delivers just what it is supposed to without any hassle.’’ Those living in Downtown are certainly a hit with their family and friends back home. ‘’Needless to say we have had a fair few visitors wanting to stay with us and we tell them
to wait in line,’’ jokes one couple, who own a two-bedroom Armani Residence apartment, nestling within Burj Khalifa. With all of the tourists thronging the immediate surroundings, and people arriving for evenings out in the tower’s restaurants and bars, Burj living isn’t for those who prefer not to see a soul en route to their doorstep but, as one owner says, the hustle and bustle doesn’t need to impose. “You are not compromising on anonymity and, honestly, it gives me a buzz to share a lift with people coming for an evening out when this is my home and I am lucky enough to be here every day.’’ Despite Downtown being dominated by residential towers, living here feels far from crowded: the extra-wide pavements of Emaar Boulevard are perfect for strolling or jogging and the Fountain Lake and its small park add to the sense of space. Separated by Financial Centre Road, the two halves of the DIFC-Downtown neighbourhood are different, yet very complementary – and, of course, they share one of the world’s biggest retail destinations, The Dubai Mall.
www.luxhabitat. ae
continued on page 16
Current Prices Average prices for apartments in DIFC and Downtown Burj Khalifa, compared with those in Dubai Marina, JLT and Palm Jumeirah Average Prices (AED/ sq ft)
Dubai Marina JLT
1,200 800
Palm Jumeirah Downtown Burj Khalifa
1,400 1,600 1,500
DIFC
Source: Luxhabitat analysis, June 2012
To READ MARKET UPDATES FROM OTHER NEIGHBouRHOODs
www.thejournal.ae/neighbourhood
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Summer 2012
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DIFC Downtown did you know... DIFC’s Gate Village was designed by the award-winning British architectural firm, Hopkins. Set on a podium, the 10 buildings are arranged to shade the walkways naturally and funnel the breeze, as in traditional Arabian architecture. Hopkins’ design for the new World Trade Centre District is now taking shape north of Emirates Towers and another Hopkins project will be soon be seen by a global audience of billions: the Velodrome for the London 2012 Olympics, which recently was named Design of the Year 2012 for Architecture.
Expert View David Terry
Sales Manager, Luxhabitat
E: dt@luxhabitat.ae | T: +971 50 875 0307
Location, location, location
continued from page 15
Downtown residents wanting something more special in the way of dining than the largely casual options in their immediate surroundings, are five minutes away from the glamour of Zuma or the impeccable cuisine at La Petite Maison, both within DIFC, not to mention The Ivy, Hakkasan and Alfie’s at Emirates Towers (for DIFC residents, of course, these are all just a few smartly-shod steps away). The Arts are on the march here in the heart of Dubai: cultural connoisseurs can get their fix in DIFC, courtesy of several high-end art galleries that have opened there, while the laid-back Pavilion Downtown offers a change of pace, with its library of design books, film screening room and rotating exhibitions of art – mostly by emerging Emirati talents. The ‘island’ park in the Downtown lake is the venue for many arts events, including the recent World Music concert series, while the large tent inaugurated by the recent Design Days Dubai, is a permanent fixture, intended to host many different events. With plans just announced to make Downtown the site of a new museum of contemporary art and an opera house, its future as the city’s cultural hub is assured – yet another benefit for residents. With Dubai’s burgeoning financial district and the world’s tallest tower as your neighbours, the pace of life here is fast but, for the residents of this privileged corner of the city, life isn’t for living any other way.
The strong architectural statement of The Gate building, symbolises Dubai’s goal to become the financial hub of the entire region
Living in the adjoining neighbourhoods of DIFC and Downtown is all about location and convenience: being a stone’s throw from work and surrounded by Dubai’s best retail and leisure amenities. Downtown emerged as a prime residential hub round three years ago but only in the past two years have we been able to class DIFC as residential; before then it was purely a business district. Recently about five new residential developments have been handed over in DIFC and 25 in Downtown, with even more in the works. [CHK 25?? Recently??.... Ed] The shortage of high-value properties here is a challenge. Apartments tend to be smaller – although Luxhabitat has cornered the market in what high-end units there are. Our biggest property is a 7,059 square foot, five-bed-
The perception is that property here is a safe bet, given its price-for-value, location and amenities
room duplex in The Residences, currently on the market for AED 28,000,000. In Burj Khalifa, by comparison, the largest apartment is 6,000 sq.ft, with four bedrooms. Bigger units in Index Tower in DIFC, handed over 18 months ago, have sold well – there are four 11,000 sq ft penthouses in the building and eight sub-penthouses at 8,000 sq ft. Lime-
stone House also has some larger, high-quality apartments. We have always seen a large number of Arab clients purchasing high-end properties in this area – and even more, following the Arab Spring. They like its proximity to The Dubai Mall. Saudis in particular are driving up demand: business and leisure connections mean they spend a lot of time here and families are buying large apartments as a convenient place to stay when in Dubai, rather than as a permanent residence. The perception has always been that property here is a safe bet, given its price-for-value, location and amenities. Pre-crisis prices were around 50 per cent higher here than in areas, such as the Marina, they remained higher than much of Dubai in the crisis and have bounced back faster than others. Occupancy rates are good, with prime buildings such as Index Tower around 80 per cent, and prices are regaining strength. In 2009, prices started at around AED 2,000 per sq.ft (higher in Burj Khalifa) fell to around 50 per cent of that at their lowest. In the first quarter of 2012 prices were back to AED 1,800-2,200 per sq.ft. About 80 per cent of DIFC-Downtown buyers are owner-occupiers; higher maintenance fees have kept rental yields low, deterring investors. Those who do buy for investment are doing so in Burj Khalifa. The area’s lifestyle offering has improved greatly over the past 12-18 months. DIFC is now a major dining destination, there are more family-friendly amenities and, with each new development, more retail space for supermarkets and healthcare facilities. David Terry was talking to Samantha Armstrong
interview
Business meets Pleasure For Victor Leginsky, living in DIFC means an easy commute and the best of both worlds on his doorstep by Debbie Spalton
Victor Leginsky describes himself as “a serial expat who likes to live in fascinating places around the world”. A well-travelled Canadian who came to Dubai in 2007, he now lives in Sky Gardens: “I’ve lived in the neighbourhood for two-and-a-half years; initially I chose it because of the central location – it’s close to my office, convenient for the airport and you have access to most areas of Dubai by car, taxi or metro.” A lawyer by training and now working as an arbitrator, he shares an office in Emirates Towers with his business partner Mark Nierada, but his work often takes him around the region – to Abu
Dhabi, Bahrain, Doha – and sometimes further afield, to Hong Kong, Singapore, London or Paris. “A typical client would be a large construction or oil and gas company trying to settle a contract dispute instead of resorting to the courts. Usually the companies are from different countries and the arbitration is carried out in a third neutral country, so my work as an international arbitrator fits in well with my love of travelling.” Something Victor has come to love about living in DIFC is the social life right on his doorstep. “The bars and restaurants are sophisticated, fun and great places to meet people – and there is a good selection now. Vu’s Bar in Emirates Towers is good for a quiet drink and listening to jazz, which I love. For a casual night the Blue Bar at the Novotel is my favourite and for a more formal evening it would be The Gramercy or the Ritz Carlton.” There are other benefits too, he says: “They do a really good job of networking in the DIFC with breakfast meetings and many other functions, to make sure that people get to know each other and trade within the Free Zone.” With his ‘commute’ being just a five- or 10-minute walk, living here makes it easy to take advantage of what’s on offer. Victor is also excited by DIFC’s burgeoning cultural life, as art galleries have sprung up around the
Summer 2012
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A Life on High and Right in the Middle of Everything
The largest residential property currently offered for sale in Downtown, this five-bedroom duplex apartment offers internal spaces that are every bit as special as its views
When Burj Khalifa erupts in a spectacular burst of fireworks on New Year’s Eve you could hardly be in a better place than this duplex penthouse in The Residences. From the balconies that span the entire width of each floor and from all of the main rooms you have the ultimate grandstand view of
FASCINATING FACT... As part of its master plan for Downtown, Emaar established its own Hospitality division, to develop and manage hotels in the neighbourhood. Currently it owns and operates six hotels in Downtown, comprising a total of more than 1,000 rooms. In addition, the Armani Hotel within Burj Khalifa is a joint venture between Emaar and Giorgio Armani SpA.
the fireworks and fountains. But special occasions aside, this is a fantastic home all year round, with six balconies, stunning views in three directions, very large interior spaces arranged over two floors, and absolute privacy. An apartment of such size and quality is extremely rare in this highly
prized Downtown location. As you enter the front door the apartment reveals its secrets slowly. The lighting here is subdued yet theatrical, the staircase highlighted by LED and pinpoint spotlights. Turn right and the entrance hall leads into a grand, glass-walled double-height space
that in turn flows into a very large openplan living room to one side and dining room to the other – all of them with doors on to the main balcony. Large and highly adaptable, this living space works perfectly for both family life and formal entertaining. On the other side of the entrance, with their own balconies and far-reaching views towards the sea and the sunset, there’s a home office and bedroom suite, both well positioned for privacy, and a games room. Upstairs, opening off the gallery-style mezzanine, there is a very spacious master suite with a large, adjoining sitting room that would also work very well as a family living room. The two other bedroom suites are also very large, wonderfully light and have beautifully fitted bathrooms. One suite features a double-aspect view of Burj Khalifa and the sea beyond, while the other has a large private terrace facing towards the sunset. The penthouse has three parking spaces, and residents enjoy access to very good leisure facilities, including a swimming pool, gymnasium, squash court, steam room and sauna. A short walk from The Dubai Mall, this wonderful apartment has access to a vast number of shops, restaurants and bars and, with DIFC very close by, is perfectly located for Dubai’s most important business and leisure destinations. Price On Application. Property Ref 859 Contact David Terry: +971 50 875 0307; dt@luxhabitat.ae
Status and Situation are Key for Buyers Here 2,000
Start high and stay higher than the rest of Dubai seems to have been the mantra for prices in DIFC and Downtown, with both in strong demand and prices edging up again
Average Prices (AED/ sq ft) 1,729 1,655
1,591
1,500 1,320
by Samantha Armstrong
cafes and restaurants. “On certain evenings they put on an ‘Art Walk’ when they introduce their new shows and stay open late, offering food and drinks, and we can stroll around, look at the art and discuss it with like-minded people. The galleries are so different: some are edgy, some more traditional and others specialise in Emirati and regional artists, I have bought a few smaller pieces and I am looking forward to expanding my collection.” A typical day has Victor working out at Fitness First or going for a run in the morning “There is a wonderful neighbourhood [Zabeel] just behind my apartment with trees, animals and even peacocks, so it’s great to run there. But we are here to make money, so I hit the office and work as long as I can – then there is always lunch with a colleague or dinner at the end of the day to discuss business and plan for the next day.” For Victor living here means being able to mix business and pleasure in a comfortable way.
to read more see www.thejournal.ae/neighbourhood
As one of the newer areas, DIFC and Downtown’s original sales prices were around 50 per cent higher pre-crisis than in locations such as Dubai Marina. The area’s proximity to the financial district and Dubai Mall has kept it in demand so, while prices were hit, they have stayed comparatively healthy. In December 2007 Reidin data indicated that the average sales price of a property in the DIFC-Downtown area was AED 1,655 per square foot, rising to AED 1,729 in September 2008. Although, during the financial crisis, prices did not see as sharp a decrease as in many other areas, they did decline for longer, continuing to fall from AED 1,591 per sq.ft in March 2009 to AED 1,320 in December 2010, before reaching a low of AED 1,233 per sq.ft in December 2011. The price still remains around that level, according to sales figures gathered in March 2012. High-quality units at the top end of the market kept the average price higher in this area for longer, with developments such as Burj Khalifa (both the turnkey Armani Residences apartments and the Emaar-finished units on the floors above), Limestone House and Index Tower leading the way. The price difference between the top and bottom end of the market is wide, with the lower end being hit harder, in the downturn as early investors had bought multiple smaller properties for investment and continued to
1,233
1,233
Dec 11
Mar 12
1,000
500
Dec 07
Sep 08
Mar 09
Dec 10
Prices began higher here than elsewhere in Dubai and fell later, but are now stable and offer good long-term value Source: Luxhabitat analysis, June 2012
sell throughout the period, taking losses if they had to. Examining the current average price per square foot of the DIFC-Downtown area in the context of other major areas where the property stock is also dominated by apartments, Downtown Burj Khalifa is the highest in Dubai at AED 1,600 closely followed by DIFC with a slightly lower price of AED 1,500 due to its reputation as a commercial rather than residential community. This stands in stark contrast to Jumeirah Lakes Towers, the lowest-priced of the apartment-dominated neighbourhoods, which currently achieves an average of AED 650 per sq.ft. Occupying the middle ground in pricing
terms are Dubai Marina at AED 1,000 and Palm Jumeirah apartments (Shoreline, Tiara and the like) at AED 1,100 per square foot. Convenience and location are the key ingredients in DIFC-Downtown. It has always been perceived as a safe bet by buyers and, lately, as construction has resumed again in earnest, the area’s status as the city’s new heart has been cemented. With the government’s recently announced plans to add an opera house and contemporary art museum to the area’s mix, owners can be confident that this financial and retail hub will continue to attract buyers and rental customers willing to pay a premium for living in this desirable part of town.
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the journal
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Property Gallery
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With Burj Khalifa in the foreground and the sea beyond, the views from this penthouse apartment are truly breathtaking. Enjoying all of the benefits of The Address hotel, it offers an exceptionally high level of privacy and security, as well as an excellent gym, spa and swimming pool – and even room service. Beautifully decorated, it has four ensuite bedrooms, a study and a wonderful open-plan living room with a huge balcony – all arranged over a generous 3,850 square feet. AED 23,000,000. Property Ref.956
With generous spaces, great decor and a grandstand view of Burj Khalifa, this fully furnished 4-bedroom apartment offers Downtown living at its finest. With the option of full hotel-style services, it is a rare find. AED 23,000,000. Property Ref. 750
BURJ KHALIFA
A chic 2-bedroom, serviced apartment in Armani Residences, decorated and styled to the last detail. Great views. Price on Application. Property Ref.731
With 360-degree views of city and sea, this stunning duplex penthouse sits atop DIFC’s most prestigious tower. Spanning 7,900 square feet it has four ensuite bedrooms, a guest suite and multiple reception rooms. AED 28,000,000. Property Ref.763
BURJ KHALIFA rental
For rent, this is a fantastic 2-bedroom apartment at one of the world’s most famous addresses. Fully serviced. AED 750,000 per year. Property Ref. 769
BURJ KHALIFA
Decorated and furnished by Armani Casa this superb 2-bedroom serviced apartment would make an amazing and stylish pied-à-terre. AED 29,200,000. Property Ref.471